TIDMBMR
RNS Number : 9365L
Berkeley Mineral Resources PLC
30 April 2015
BERKELEY MINERAL RESOURCES PLC
("BMR" or the "Company")
Interim results
Chairman's statement
I present below the unaudited interim results for the six months
ended 31 December 2014.
Results for the six months ended 31 December 2014
The loss before taxation for the six months ended 31 December
2014 before exchange translation differences was GBP951,000 (2013
restated: GBP6.988 million, previously reported as GBP883,000). The
loss for the period represents administrative expenses which
amounted to GBP951,000 (2013 restated: GBP1.406 million, previously
reported as GBP883,000). Loss per ordinary share was 0.07p (2013
restated: 0.62p, previously reported as 0.08p).
Restated figures for 2013 are shown after making adjustments of
GBP523,000 to the administrative expenses (in respect of
depreciation and a provision for a payment to a former director, Mr
Y Ben Israel, which were not previously accounted for, and expenses
previously capitalised) and include write-downs and provisions of
GBP4.216 million arising from the investigation and audit for the
year ended 30 June 2014, as noted in the annual report and
accounts. An adjustment of GBP1.364 million has also been made for
share-based payments (arising on the issue of new ordinary shares
following the exercise of warrants) which had incorrectly not
previously been recorded in the Income Statement by the former
management.
Total net assets at 31 December 2014 amounted to GBP8.201
million following the write-downs and provisions (2013 restated,
reflecting adjustments set out in the financial statements for the
year ended 30 June 2014: GBP9.089 million). Cash balances at 31
December 2014 amounted to GBP495,000 (2013: GBP410,000).
Shareholders will be aware of the developments during the period
under review, and subsequent to the period end, relating to the
investigation, settlement agreement and the write-downs and
provisions, from the Chairman's Statement published on 14 April
2015 with the financial statements for the year ended 30 June 2014.
The Company received GBP960,000 in respect of the settlement
agreement on 18 February 2015; the write-downs and provisions in
respect of the year ended 30 June 2014 and prior years amounted, in
aggregate, to GBP10.296 million; and, following write-downs and
provisions, the Group's audited net assets at 30 June 2014 amounted
to GBP8.087 million.
As previously announced on 2 April 2015, the Directors have
selected leach processing as the methodology for processing both
the washplant and leachplant tailings, and expect to finalise the
design parameters for a pilot plant soon. Although the pilot plant
is yet to be costed and ordered, the Directors are of the opinion
that BMR has sufficient cash resources to initiate pilot processing
without recourse to BMR's shareholders. In addition, the Directors
have held preliminary discussions with the Zambian Environmental
Management Agency ("ZEMA") and believe that ZEMA approval can be
gained expeditiously for the establishment and operation of a pilot
plant for processing the tailings.
The interim results for the six months ended 31 December 2014
will shortly be available on the Company's website
www.bmrplc.com.
Listing
Following the announcement of these interim results, the
Directors understand that the suspension of the trading of the
shares on AIM will be lifted and dealings on AIM will
re-commence.
Sale of copper plant
Subsequent to the announcement on 14 April 2015 of the results
for the year ended 30 June 2014, the Company has reached agreement
for the sale of the copper leach plant and certain items of
equipment at Kabwe for the sum of $70,000, of which an initial
payment of 50% has been received.
This was written-off as at 30 June 2014 hence the sale, which
represents a good achievement by local management, will generate a
gross profit of $70,000 in the full year results.
Director changes
I was appointed Chairman on 23 October 2014 and, as announced
separately today, I have today also been appointed as Chief
Executive. At the present time, the Board's energies are being
concentrated on moving the Company into production, initially
through the establishment of a pilot plant and subsequently with a
full-scale operation. It is however the intention of the Board to
split the role of Chairman and Chief Executive in due course.
On 2 February 2015, Jeremy Hawke, a chartered engineer with
significant mining expertise, was appointed Director, Mining and
Operations.
Mark Wainwright, non-executive Director, who was appointed
Acting Chief Executive on 23 October 2014, has agreed to step down
from this role today in order to return to a non-executive role
until the conclusion of the Annual General Meeting to be held on 28
May 2015, when he will also step down from that role.
Horacio Furman will also step down at the conclusion of the
Annual General Meeting.
The Directors intend to announce the appointment of a new
non-executive director as soon as practicable following the
conclusion of the Annual General Meeting.
Cash flow considerations
Current cash balances amount to GBP852,000. The Directors expect
to apply part of the available cash resources in the establishment
of a pilot plant at Kabwe for commencement of the processing of the
tailings. The Company may require additional funding to complete
the financing of a new full-scale processing plant for the
tailings.
The Directors continue to maintain tight control over the level
of overheads. As announced on 14 April 2015, the Company has
appealed against the notice from HMRC that it may be de-registered
for VAT which situation could have been resolved by previous
management. While the Company has provided in full for the
assessment for GBP268,491 in back VAT, in the event that its appeal
is unsuccessful, settlement of this amount would represent a
significant drain on the Company's resources although the Board
believes that the Company would still have sufficient funds for the
pilot plant.
Furthermore, while the Company has been in discussions for the
re-assignment of its head office lease prior to the expiry date of
25 December 2015, its continued occupancy with an annualised cost
of around GBP190,000 for nearly 4,000 sq ft, represents a further
financial burden on resources.
As a result, the Directors believe it is essential that
shareholders approve the resolutions at the Annual General Meeting
to facilitate any future fund raising that may be required and to
enable the Company to move on from its recent past.
Outlook
As I noted in my Statement on 14 April 2015, the Company has an
effective asset base of significant potential value through its
tailings at Kabwe which we intend to process for the realisation of
zinc and lead concentrates, initially through the establishment and
operation of a pilot processing plant.
I am confident that the Company now has a viable future with a
solid asset base and I look forward to updating shareholders as we
progress within this new chapter with a new management team.
Alex Borrelli
Chairman
30 April 2015
BERKELEY MINERAL RESOURCES PLC
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the six month period ended 31 December 2014
Un-audited Un-audited Un-audited Audited
Period ended Period ended Period ended Year ended
31 December 31 December 31 December 30 June 2014
2014 2013 2013 GBP
GBP GBP GBP
Restated Previously
reported
------------------------------ -------------- --------------- ------------- -------------
Continuing operations
------------------------------ -------------- --------------- ------------- -------------
Administrative expenses ( 950,505) ( 1,405,845) (883,260) (3,043,518)
------------------------------- -------------- --------------- ------------- -------------
Impairment write down
and provision - (4,215,537) - (4,570,064)
------------------------------- -------------- --------------- ------------- -------------
Share based payment - (1,364,312) - (1,650,828)
------------------------------- -------------- --------------- ------------- -------------
Total administrative
expenses (950,505) (6,985,694) (883,260) (9,264,410)
------------------------------- -------------- --------------- ------------- -------------
Finance expense (945) (2,434) - (4,868)
------------------------------- -------------- --------------- ------------- -------------
Finance income 625 360 360 583
------------------------------- -------------- --------------- ------------- -------------
Loss before tax (950,825) (6,987,768) (882,900) (9,268,695)
------------------------------- -------------- --------------- ------------- -------------
Taxation - - -
------------------------------ -------------- --------------- ------------- -------------
Loss for the period
after taxation attributable
to equity holders of
the parent company (950,825) (6,987,768) (882,900) (9,268,695)
------------------------------- -------------- --------------- ------------- -------------
Other comprehensive
loss:
------------------------------ -------------- --------------- ------------- -------------
Exchange translation
differences on foreign
operations 114,848 (318,003) (906,039) (636,005)
------------------------------- -------------- --------------- ------------- -------------
Total comprehensive
loss for the period
attributable to equity
holders of the parent
company (835,977) (7,305,771) (1,788,939) (9,904,700)
------------------------------- -------------- --------------- ------------- -------------
Loss per ordinary share
------------------------------ -------------- --------------- ------------- -------------
Basic and diluted (pence) (0.07p) (0.62p) (0.08p) (0.77p)
------------------------------- -------------- --------------- ------------- -------------
The comparative figures are for the six month period ended 31
December 2013 (restated) and the year ended 30 June 2014.
BERKELEY MINERAL RESOURCES PLC
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 31 December 2014
Un-audited Un-audited Un-audited Audited
31 December 31 December 31 December 30 June
2014 2013 2013 2014
GBP GBP GBP GBP
Restated Previously
reported
------------------------------ ------------ ------------ ------------ ------------
Assets
------------------------------ ------------ ------------ ------------ ------------
Non-current assets
------------------------------ ------------ ------------ ------------ ------------
Intangible exploration and
evaluation assets 9,811,133 10,559,991 14,258,343 9,829,462
------------------------------- ------------ ------------ ------------ ------------
Property, Plant and Equipment 115,678 149,397 350,782 135,243
------------------------------- ------------ ------------ ------------ ------------
Prepayment for non current
asset - - 4,309,176 -
------------------------------- ------------ ------------ ------------ ------------
9,926,811 10,709,388 18,918,301 9,964,705
------------------------------ ------------ ------------ ------------ ------------
Current assets
------------------------------ ------------ ------------ ------------ ------------
Trade and other receivables 132,807 345,755 657,360 118,121
------------------------------- ------------ ------------ ------------ ------------
Cash and cash equivalents 494,516 409,775 409,775 750,695
------------------------------- ------------ ------------ ------------ ------------
627,323 755,530 1,067,135 868,816
------------------------------ ------------ ------------ ------------ ------------
Total assets 10,554,134 11,464,918 19,985,436 10,833,521
------------------------------- ------------ ------------ ------------ ------------
Liabilities
------------------------------ ------------ ------------ ------------ ------------
Current liabilities
------------------------------ ------------ ------------ ------------ ------------
Trade and other payables 497,726 520,874 408,149 891,136
------------------------------- ------------ ------------ ------------ ------------
Total current liabilities 497,726 520,874 408,149 891,136
------------------------------- ------------ ------------ ------------ ------------
Non current liabilities
------------------------------ ------------ ------------ ------------ ------------
Deferred tax 1,855,145 1,855,145 1,820,902 1,855,145
------------------------------- ------------ ------------ ------------ ------------
Total non current liabilities 1,855,145 1,855,145 1,820,902 1,855,145
------------------------------- ------------ ------------ ------------ ------------
Total liabilities 2,352,871 2,376,019 2,229,051 2,746,281
------------------------------- ------------ ------------ ------------ ------------
Net assets 8,201,263 9,088,899 17,756,385 8,087,240
------------------------------- ------------ ------------ ------------ ------------
Equity
------------------------------ ------------ ------------ ------------ ------------
Share capital 20,892,288 19,107,977 19,107,977 20,178,002
------------------------------- ------------ ------------ ------------ ------------
Share premium 20,697,815 18,434,912 19,799,225 20,462,101
------------------------------- ------------ ------------ ------------ ------------
Warrant reserve - 1,786,459 1,786,459 -
------------------------------- ------------ ------------ ------------ ------------
Merger reserve 1,824,000 1,824,000 1,824,000 1,824,000
------------------------------- ------------ ------------ ------------ ------------
Translation reserve (853,856) (650,701) (1,178,396) (968,704)
------------------------------- ------------ ------------ ------------ ------------
Retained earnings (34,358,984) (31,413,748) (23,582,880) (33,408,159)
------------------------------- ------------ ------------ ------------ ------------
Total equity 8,201,263 9,088,899 17,756,385 8,087,240
------------------------------- ------------ ------------ ------------ ------------
BERKELEY MINERAL RESOURCES PLC
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the six month period ended 31 December 2014
Share capital Share premium Warrant Merger Translation Retained Total
reserve reserve reserve earnings equity
-------------------- ------------- ------------- ----------- ----------- ----------- -------------- -----------
GBP GBP GBP GBP GBP GBP GBP
-------------------- ------------- ------------- ----------- ----------- ----------- -------------- -----------
As at 31 December
2013
(restated) 19,107,977 18,434,912 1,786,459 1,824,000 (650,701) (31,413,748) 9,088,899
-------------------- ------------- ------------- ----------- ----------- ----------- -------------- -----------
Total comprehensive
loss for the
period - - 286,516 - (318,003) (2,280,927) (2,312,414)
-------------------- ------------- ------------- ----------- ----------- ----------- -------------- -----------
Issue of shares 1,070,025 304,778 - - - - 1,374,803
-------------------- ------------- ------------- ----------- ----------- ----------- -------------- -----------
Share issue costs - (64,048) - - - - (64,048)
-------------------- ------------- ------------- ----------- ----------- ----------- -------------- -----------
Adjustment of
reserves on
warrants
exercised and
lapsed - 1,786,459 (2,072,975) - - 286,516 -
-------------------- ------------- ------------- ----------- ----------- ----------- -------------- -----------
As at 30 June
2014 20,178,002 20,462,101 - 1,824,000 (968,704) (33,408,159) 8,087,240
-------------------- ------------- ------------- ----------- ----------- ----------- -------------- -----------
Total comprehensive
loss for the
period - - - - 114,848 (950,825) (835,977)
-------------------- ------------- ------------- ----------- ----------- ----------- -------------- -----------
Issue of shares 714,286 285,714 - - - - 1,000,000
-------------------- ------------- ------------- ----------- ----------- ----------- -------------- -----------
Share issue costs - (50,000) - - - - (50,000)
-------------------- ------------- ------------- ----------- ----------- ----------- -------------- -----------
As at 31 December
2014 20,892,288 20,697,815 - 1,824,000 (853,856) (34,358,984) 8,201,263
-------------------- ------------- ------------- ----------- ----------- ----------- -------------- -----------
BERKELEY MINERAL RESOURCES PLC
CONSOLIDATED CASH FLOW STATEMENT
for the six month period ended 31 December 2014
Un-audited Un-audited
Period ended Period ended
31 December 31 December
2014 2013
GBP GBP
Restated
---------------------------------------------- -------------- --------------
Cash flows from operating activities
---------------------------------------------- -------------- --------------
Loss before tax (950,825) (6,987,768)
----------------------------------------------- -------------- --------------
Adjustments to reconcile net losses
to cash utilised :
---------------------------------------------- -------------- --------------
Amortisation of exploration and evaluation
assets 139,058 185,022
----------------------------------------------- -------------- --------------
Impairment of exploration and evaluation
assets - 3,586,478
----------------------------------------------- -------------- --------------
Depreciation of property, plant and
equipment 22,152 34,876
----------------------------------------------- -------------- --------------
Impairment of property, plant and
equipment - 46,000
----------------------------------------------- -------------- --------------
Finance income (625) (360)
----------------------------------------------- -------------- --------------
Share based payments - 1,364,312
----------------------------------------------- -------------- --------------
Operating cash outflows before movements
in working capital (790,240) (1,771,440)
----------------------------------------------- -------------- --------------
Changes in:
---------------------------------------------- -------------- --------------
Trade and other receivables (15,474) 87,644
----------------------------------------------- -------------- --------------
Trade and other payables (392,755) 284,119
----------------------------------------------- -------------- --------------
Net cash outflow from operating activities (1,198,469) (1,399,677)
----------------------------------------------- -------------- --------------
Investing activities
---------------------------------------------- -------------- --------------
Interest received - 360
----------------------------------------------- -------------- --------------
Purchase of property, plant and equipment (4,490) (44,304)
----------------------------------------------- -------------- --------------
Purchase of intangible exploration
and evaluation assets (24,664) (14,837)
----------------------------------------------- -------------- --------------
Advance payments for purchase of non-current
assets - (23,569)
----------------------------------------------- -------------- --------------
Net cash outflow from investing activities: (29,154) (82,350)
----------------------------------------------- -------------- --------------
Financing activities
---------------------------------------------- -------------- --------------
Proceeds from issue of shares 1,000,000 1,653,258
----------------------------------------------- -------------- --------------
Share issue costs (50,000) (62,557)
----------------------------------------------- -------------- --------------
Net cash from financing activities 950,000 1,590,701
----------------------------------------------- -------------- --------------
Net increase / (decrease) in cash
and cash equivalents (277,623) 108,674
----------------------------------------------- -------------- --------------
Effect of foreign exchange rate changes 21,444 3,808
----------------------------------------------- -------------- --------------
Cash and cash equivalents at beginning
of period 750,695 297,293
----------------------------------------------- -------------- --------------
Cash and cash equivalents at end of
period 494,516 409,775
----------------------------------------------- -------------- --------------
Notes to the interim results:
1. General information and accounting policies
This announcement is for the unaudited interim results for the
period ended 31 December 2014. The Registered Office of the Company
is at 6 Derby Street, London W1J 7AD.
2. Basis of preparation
The consolidated interim financial information has been prepared
using policies based on International Financial Reporting Standards
issued by the International Accounting Standards Board ("IASB") as
adopted by the European Union, which are expected to be applied in
the Group's financial statements for the year ending 30 June
2015.
The consolidated interim results for the period 1 July 2014 to
31 December 2014 is unaudited, does not include all the information
required for full financial statements and should be read in
conjunction with the Group's consolidated financial statements for
the year ended 30 June 2014. In the opinion of the Directors the
consolidated financial information for the period represents fairly
the financial position, results from operations and cash flows for
the period in conformity with generally accepted accounting
principles consistently applied.
The consolidated interim financial information incorporates
restated comparative figures for the interim period 1 July 2013 to
31 December 2013 and the audited financial year to 30 June
2014.
The annual financial statements of Berkeley Mineral Resources
PLC are prepared in accordance with International Financial
Reporting Standards ('IFRSs') as issued by the International
Accounting Standards Board ('IASB') and as adopted by the European
Union. The Group's consolidated annual financial statements for the
year ended 30 June 2014, have been filed with the Registrar of
Companies and are available on the Company's website
www.bmrplc.com. The auditor's report on those financial statements
was unqualified and did not contain a statement under sections
498(2) or (3) of the Companies Act 2006. As permitted, the Group
has chosen not to adopt IAS34 'Interim Financial Reporting'.
3. Prior period restatement
The consolidated interim results for the period 1 July 2013 to
31 December 2013 have been restated to reflect the write-down of
certain assets. The effect of the restatement is summarised as
follow:
Un-audited Un-audited
31 December 31 December
2013 Adjustment 2013
GBP GBP GBP
Previously Restated
reported
------------------------------ ------------ ------------ ------------
Loss for the year
------------------------------ ------------ ------------ ------------
Administrative expenses (883,260) (6,102,434) (6,985,694)
------------------------------- ------------ ------------ ------------
Assets
------------------------------ ------------ ------------ ------------
Non-current assets
------------------------------ ------------ ------------ ------------
Intangible exploration
and evaluation assets 14,258,343 (3,698,352) 10,559,991
------------------------------- ------------ ------------ ------------
Property, Plant and Equipment 350,782 (201,385) 149,397
------------------------------- ------------ ------------ ------------
Prepayment for non current
asset 4,309,176 (4,309,176) -
------------------------------- ------------ ------------ ------------
18,918,301 (8,208,913) 10,709,388
------------------------------ ------------ ------------ ------------
Current assets
------------------------------ ------------ ------------ ------------
Trade and other receivables 657,360 (311,605) 345,755
------------------------------- ------------ ------------ ------------
Cash and cash equivalents 409,775 - 409,775
------------------------------- ------------ ------------ ------------
1,067,135 (311,605) 755,530
------------------------------ ------------ ------------ ------------
Total assets 19,985,436 (8,520,518) 11,464,918
------------------------------- ------------ ------------ ------------
Liabilities
------------------------------ ------------ ------------ ------------
Current liabilities
------------------------------ ------------ ------------ ------------
Trade and other payables 408,149 112,725 520,874
------------------------------- ------------ ------------ ------------
Total current liabilities 408,149 112,725 520,874
------------------------------- ------------ ------------ ------------
Non current liabilities
------------------------------ ------------ ------------ ------------
Deferred tax 1,820,902 34,243 1,855,145
------------------------------- ------------ ------------ ------------
Total non current liabilities 1, 820,902 34,243 1,855,145
------------------------------- ------------ ------------ ------------
Total liabilities 2,229,051 146,968 2,376,019
------------------------------- ------------ ------------ ------------
Net assets 17,756,385 (8,667,486) 9,088,899
------------------------------- ------------ ------------ ------------
Equity
------------------------------ ------------ ------------ ------------
Share capital 19,107,977 - 19,107,977
------------------------------- ------------ ------------ ------------
Share premium 19,799,225 (1,364,313) 18,434,912
------------------------------- ------------ ------------ ------------
Warrant reserve 1,786,459 - 1,786,459
------------------------------- ------------ ------------ ------------
Merger reserve 1,824,000 - 1,824,000
------------------------------- ------------ ------------ ------------
Translation reserve (1,178,396) 527,695 (650,701)
------------------------------- ------------ ------------ ------------
Retained earnings (23,582,880) (7,830,868) (31,413,748)
------------------------------- ------------ ------------ ------------
Total equity 17,756,385 (8,667,486) 9,088,899
------------------------------- ------------ ------------ ------------
Note The variance of GBP1,728,434 between the adjustment for
administrative expenses of GBP6,102,434 and retained earnings of
GBP7,830,868 is due to prior year adjustments going back to before
1 July 2013.
4. The Directors do not recommend the payment of an interim dividend.
5. Share capital
On 8 July 2014, the Company issued 35,714,285 ordinary shares of
1p each at a price of 1.4p per share raising GBP500,000.
On 19 August 2014 the Company issued a further 35,714,285 shares
of 1p each at a price of 1.4p raising GBP500,000 following the
approval of Enviro Processing Limited's Environmental Impact
Statement by the Zambian Environmental Management Agency.
6. Loss per share
The loss per share of 0.07 pence (2013: loss 0.62 pence) has
been calculated on the basis of the loss of GBP950,825 (2013: loss
GBP6,987,768) and on 1,332,876,122 (2013: 1,124,059,889) ordinary
shares, being the weighted average number of ordinary shares in
issue during the period ended 31 December 2014.
Ends
For further information:
Berkeley Mineral Resources Plc 07747 020 600
Alex Borrelli, Chairman
WH Ireland Limited 020 7220 1666
Chris Fielding, Head of Corporate Finance
For further information please see the Company's website at
http://www.bmrplc.com
The Directors of Berkeley Mineral Resources Plc accept
responsibility for this announcement.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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