TIDMPFP
RNS Number : 6854K
Pathfinder Minerals Plc
27 June 2014
27 June 2014
Pathfinder Minerals Plc
("Pathfinder", "the Company" or "the Group")
Final results for the year ended 31 December 2013
Chairman's Statement
Introduction
This is my first statement as chairman of Pathfinder, having
been appointed in February 2014 - after the end of the period under
review. As a former Under Secretary of State at the Foreign and
Commonwealth Office with ministerial responsibility for Africa, I
hope that I bring to the board a deep understanding of the African
continent and of its opportunities.
My first four months in the role have afforded me the
opportunity to review in depth Pathfinder's position. I believe
that our investment in the English legal proceedings - which
resulted in the unequivocal ruling that Pathfinder did validly
acquire its Mozambique licence-holding subsidiary - has established
a very strong legal footing. This legal footing is the basis for
Pathfinder's application to have the English judgments recognised
(and ultimately enforced) in the Mozambique Supreme Court and/or to
seek compensation for the loss of value. It is not known, however,
when such judgments from the Mozambique Supreme Court in respect of
the recognition proceedings will be delivered. Our legal advisers
estimate anywhere from months to one or two years. While we intend
to continue to pursue the legal proceedings with all the vigour
that the Board has employed to date, I believe we must also
consider ways to build value, even in the interim period before
final judgment on these issues. The Board is also determined to
continue to explore every avenue to bringing about an earlier
resolution, if indeed one can be achieved, to restore value to the
Company more quickly than may be achieved by waiting for the courts
in Mozambique to reach a verdict.
Legal proceedings in Mozambique
The Company often receives letters and e-mails from shareholders
expressing both their resolute support of the Company's
determination to recover its assets and, at times, their
frustration with the slow progress of proceedings in Mozambique.
Their frustration is felt equally by the Board. The reality is,
however, that we are moving the proceedings along in Mozambique as
efficiently and as expeditiously as the judicial infrastructure
there will allow. I am afraid to say that there is every likelihood
of continued extended hiatuses between reportable developments in
the Mozambique proceedings.
Let me give an update on the status of legal proceedings in
Mozambique. The principal proceedings presently in train in the
Mozambique Supreme Court are two claims for recognition of the
London judgments, referred to as the First and Second Claims for
Recognition. The claims comprise a number of orders for costs
(totalling GBP1,106,000) by the English court; and certain
declarations by the English court to the effect that our
subsidiary, IM Minerals Limited ("IMM"), did indeed validly acquire
its 99.99 per cent. stake in our Mozambique licence-holding
subsidiary, Companhia Mineira de Naburi S.A.R.L ("CMDN"). The
reason these declarations were essential to Pathfinder was that IMM
needed to demonstrate beyond any doubt that it was (and should now
still be) the owner of CMDN. General Veloso and Diogo Cavaco have
continually argued that they were entitled to request the transfer
of the mining licences to their ownership because Pathfinder never
validly owned the company from which they were taken. It has been
established as a matter of law that this is not the case. As well
as seeking to have the English judgments recognised in the
Mozambique courts, Pathfinder has drawn them to the attention of
the Government of Mozambique.
The First Claim for Recognition was filed with the Supreme Court
in March 2013 and was supplemented by final written arguments in
late October 2013. The Second Claim for Recognition was filed in
August 2013. We are advised that the claims will be decided by the
Supreme Court on the papers; and that there will be no oral
argument. The court's chairman will prepare a draft judgment for
the other judges to consider and, following a meeting between them,
a final judgment will be issued. It is not known when judgments
might be delivered. As I stated earlier, it may still be a
considerable time.
There are a number of other proceedings ongoing in Mozambican
courts, each of which raises the issue of the jurisdiction of the
English court and/or IMM's status as a shareholder of CMDN.
Judgments are awaited from the Mozambique courts in respect of each
of these proceedings and, again, it is not known when these might
be delivered. Whatever their outcome, however, it is likely that
further appeals will follow.
Financial results and current financial position
The financial results of Pathfinder are, as for any pre-revenue
company which does not currently have operations, very
straightforward. The most important financial measurement at this
juncture is whether Pathfinder has sufficient cash to see through
its strategy to recover its assets. The Board is prudent with
expenditure and believes the Company does have sufficient reserves
for the foreseeable future.
The financial statements of the Pathfinder Group for the year
ended 31 December 2013 follow later in this report. The Income
Statement shows a loss of GBP1.5 million (2012 - GBP4.3 million).
The conclusion of the legal action in England brought about a
material reduction in the rate of expenditure. Since the Company
has been prevented from conducting any activity relating to mining,
the whole of this loss can be attributed to the Company's attempts
to recover its expropriated licences.
The Group's Statement of Financial Position shows net assets at
31 December 2013 of GBP2.2 million (2012 - GBP3.7 million). The
assets are held largely in the form of cash deposits (totalling
GBP2.1 million at the year-end and GBP1.7 million at 20 June
2014).
Pathfinder's cash position was bolstered by the approval of the
Company's application for VAT registration (backdated to February
2011) leading to the receipt, in December 2013, of a refund of VAT
previously paid amounting to GBP978,000.
Outlook
The length of time that the Mozambican legal proceedings are
taking has unavoidably deprived shareholders of any enhancement of
value in the intervening period. The investments of time and
resources in the English legal proceedings were necessary and will
be central to the ability to achieve a beneficial resolution, in or
out of court. We will continue to press for rulings in the
proceedings in the Mozambique courts (including those related to
the recovery of costs from General Veloso and Diogo Cavaco) every
bit as determinedly as the Board has done so to date.
My overriding objective at Pathfinder is to help steer the
company towards a resolution of its issues concerning asset
ownership; and thereafter to contribute to the ongoing development
of those assets in an efficient and responsible way which creates
value for Pathfinder's shareholders and benefits Mozambique. At the
same time, and in light of the considerable length of time it may
take to achieve a legal resolution if an appropriate solution
cannot be achieved out of court, I believe we must also look for
other ways to add value to the Company while the legal proceedings
run their course. With the Mozambican legal proceedings well into
their cycle, the Board is exploring such avenues.
Henry Bellingham
Chairman
27 June 2014
Pathfinder Minerals Plc
Statement of Consolidated Comprehensive Income
For the Year Ended 31 December 2013
Year ended 31 December 2013 2012
GBP'000 GBP'000
CONTINUING OPERATIONS
Revenue - -
Administrative expenses (1,480) (4,424)
OPERATING LOSS (1,480) (4,424)
Finance income 21 106
LOSS BEFORE INCOME TAX (1,459) (4,318)
Income tax - -
LOSS FOR THE YEAR (1,459) (4,318)
OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE LOSS FOR THE
YEAR (1,459) (4,318)
======== ========
Loss per share (expressed in pence
per share)
Basic (0.1) (0.4)
Diluted (0.1) (0.4)
======== ========
Pathfinder Minerals Plc
Statement of Consolidated Financial Position
31 December 2013
2013 2012
GBP'000 GBP'000
ASSETS
CURRENT ASSETS
Trade and other receivables 185 163
Cash and cash equivalent 2,134 3,767
TOTAL ASSETS 2,319 3,930
========= =========
EQUITY
SHAREHOLDERS' EQUITY
Called up share capital 18,289 18,289
Share premium 11,022 11,022
Retained earnings (27,120) (25,661)
TOTAL EQUITY 2,191 3,650
--------- ---------
LIABILITIES
CURRENT LIABILITIES
Trade and other payables 128 280
TOTAL LIABILITIES 128 280
--------- ---------
TOTAL EQUITY AND LIABILITIES 2,319 3,930
========= =========
Pathfinder Minerals Plc
Statement of the Company's Financial Position
31 December 2013
2013 2012
GBP'000 GBP'000
ASSETS
NON-CURRENT ASSETS
Investments - -
- -
--------- ---------
CURRENT ASSETS
Trade and other receivables 185 163
Cash and cash equivalents 2,134 3,767
2,319 3,930
--------- ---------
TOTAL ASSETS 2,319 3,930
========= =========
EQUITY
SHAREHOLDERS' EQUITY
Called up share capital 18,289 18,289
Share premium 11,022 11,022
Retained earnings (deficit) (27,251) (25,792)
TOTAL EQUITY 2,060 3,519
--------- ---------
LIABILITIES
CURRENT LIABILITIES
Trade and other payables 259 411
TOTAL LIABILITIES 259 411
--------- ---------
TOTAL EQUITY AND LIABILITIES 2,319 3,930
========= =========
Pathfinder Minerals Plc
Statement of Cash Flows - Group and Company
For the Year Ended 31 December 2013
2013 2012
GBP'000 GBP'000
Cash flow from operating activities
Loss before income tax (1,459) (4,318)
Finance income (21) (106)
(1,480) (4,424)
Increase in trade and other receivables (22) (129)
Decrease in trade and other payables (152) (257)
Net cash from operating activities (1,654) (4,810)
-------- --------
Cash flow from investing activities
Interest received 21 106
Net cash from investing activities 21 106
-------- --------
Decrease in cash and cash equivalents (1,633) (4,704)
Cash and cash equivalents at the
beginning of the year 3,767 8,471
Cash and cash equivalents at the
end of the year 2,134 3,767
======== ========
Annual Report and Accounts
Copies of the Annual Report and Accounts, together with a notice
of the annual general meeting, are being posted to shareholders
today and are available within the Investor Relations section of
the Company's website www.pathfinderminerals.com.
Annual General Meeting
The annual general meeting of the Company will be held at the
offices of Daniel Stewart & Company Plc at Becket House, 36 Old
Jewry, London EC2R 8DD on 21 July 2014 at 2.30pm.
Enquiries:
Pathfinder Minerals Plc
Nick Trew, Chief Executive
Tel. +44 (0)20 7464 8413
Daniel Stewart & Company Plc
David Hart Tel: +44 (0)20 7776 6550
Vigo Communications
Ben Simons or Alexandra Roper
Tel: +44 (0)20 7016 9570
This information is provided by RNS
The company news service from the London Stock Exchange
END
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