TIDMPFP
RNS Number : 3419J
Pathfinder Minerals Plc
28 June 2017
Embargoed: 0700hrs 28 June 2017
Pathfinder Minerals Plc
("Pathfinder", the "Company" or the "Group")
Final results for the year ended 31 December 2016
Chairman's Statement
Introduction
The primary activity of Pathfinder remains that of seeking to
regain control of the valuable heavy mineral sands licences in
Mozambique which were transferred in 2011, without Pathfinder's
knowledge or consent, to the Company's former local partners.
Another important activity during the year under review was the
shoring up of the Company's balance sheet to enable it to continue
its strategy to recover the licences.
Steps to recover the company's assets
While the English High Court determined in 2012 that, contrary
to the defendants' assertions, Pathfinder does validly own the
subsidiary company from which the licences were unlawfully removed,
the Supreme Court in Mozambique is yet to recognise that decision -
a step which the Company believes will likely have the effect of
bringing to a successful conclusion the various proceedings in the
commercial court in Maputo surrounding the same issue on which the
English court has already ruled; and ultimately compel the
Mozambique Government to restore control to Pathfinder of the
licensed areas.
That application for recognition by the Supreme Court remains
pending. The Board continues to believe the prospects of the
English court decision being recognised in Mozambique are high,
based on a precedent in Mozambique relating to the formulation of
jurisdiction clauses. The timing, however, remains entirely out of
the Company's control. Some shareholders have expressed frustration
over recent months with the length of time the Supreme Court is
taking to opine on this issue. I assure you the Board shares their
sentiment. I am afraid neither Pathfinder nor its legal counsel has
any visibility over when the Supreme Court will deliver judgment on
this matter. The Supreme Court there is not answerable to such
schedules as might be adhered to in other judicial systems. There
is nothing the Company can do to speed up the process.
The only material update to have been received during 2016 in
respect of the legal proceedings ongoing in the commercial court in
Maputo was announced on 8 April 2016. This announcement recorded
the Maputo court's refusal to hear a challenge brought by
Pathfinder's subsidiary, IM Minerals Limited, to the validity of a
shareholder resolution of CMDN, purportedly passed in May 2009.
Pathfinder applied to the Maputo court on 13 April 2016 to appeal
this defective decision, which is inconsistent with previous
judgments in each of the Supreme Court, the English court and the
Maputo court. Permission to appeal was granted on 13 June 2016 and
a decision is awaited.
It is important to note that we are not simply waiting for the
Supreme Court or Maputo court to deliver its judgments. Pathfinder
is actively pursuing parallel strategies to bring about a
resolution which does not rely on the courts.
To this end, on 6 May 2016, Pathfinder announced the appointment
of Eduardo C. Mondlane Jr as its regional representative in
Mozambique. Mr Mondlane Jr is a highly respected Mozambican who has
been providing strategic advisory services in Africa for thirty
years across industries including aerospace, infrastructure,
energy, power and financial services. He has advised companies
including Boeing Commercial Airplanes, United Technologies, Siemens
and GE Capital Aviation. He has also served on the boards of Absa
Group and Bank (Barclays Africa) and other Barclays African
subsidiary banks.
Mr Mondlane Jr, Pathfinder's board and members of Pathfinder's
legal counsel in Mozambique are actively engaged in discussions
with relevant departments within the Mozambique Government
including regarding the current status of the licensed areas which,
at present, reside under the control of Pathfinder's former local
partners. Furthermore, through Mr Mondlane Jr, Pathfinder is
engaged in constructive discussions with Jacinto Veloso, the
Company's lead former local partner, in an attempt to bring about a
resolution without further reliance on the judicial processes. At
this point, there are no material developments and no certainty of
a resolution outside of the courts; however, the board continues to
push for a breakthrough.
Financial results and current financial position
Good progress was made during 2016 to shore up the Company's
balance sheet to enable us to continue our strategy to recover our
assets. Gross proceeds of approximately GBP700,000 were raised
through the issue of new shares to investors (including the chief
executive) both during 2016 and earlier this year; and net proceeds
of approximately a further GBP161,000 were raised through sale of
all the shares previously owned by Pathfinder's former local
partners (the defendants in the English court legal proceedings)
following the English court's granting, on 23 August 2016, of
orders for sale as part of the Company's enforcement in England of
certain orders for payment of legal costs to the Company by the
defendants.
In parallel with bringing in additional funds, the Board
continues to manage the central overheads of the Company rigorously
in order to preserve cash as much as possible. The Company has
foregone a physical head office; the overall cost of directors'
fees has reduced and was approximately 17% less than the cost of
directors' fees for 2015; and payments of an aggregate 41% of those
directors' fees incurred in the period under review, in addition to
other benefits such as pension contributions, have been deferred
until the Company is in materially better financial health.
The financial statements of the Pathfinder Group for the year
ended 31 December 2016 follow later in this report. The Income
Statement shows a reduced loss of GBP582,000 (2015 - GBP1,093,000)
of which GBP138,000 relates to directors' fees and pension
contributions that are recorded as a liability in 'Trade and other
payables' but actual payment of which have been deferred as
described above and in 'Note 20' to these accounts.
The Group's Statement of Financial Position shows net assets
(excluding GBP183,000 of deferred fees and pension contributions
described in 'Note 20') at 31 December 2016 of GBP122,000 (31
December 2015 - GBP87,000). The assets are held largely in the form
of cash deposits (totalling GBP134,000 at the end of the period).
These assets were boosted by the raising of a further GBP200,000
after the year end, on 1 March 2017, through a placing of new
shares with investors.
Corporate events
On 10 March 2016, James Normand resigned from the Board as
Finance Director and, on 29 March 2016, we welcomed Robert Easby as
his replacement. Robert qualified as a Chartered Accountant in 2000
and spent his early career in audit compliance and as a Company Law
specialist within a large regional Chartered Certified Accountancy
practice.
Outlook
The Company will continue to report through the regulatory news
service any material developments, either in respect of the
Mozambique courts or the parallel discussions to bring about a
faster resolution. The Board remains as determined as ever - as
evidenced by the chief executive's own subscription for GBP100,000
worth of shares during the year under review - to bring about a
successful resolution that recovers value for shareholders in the
wake of these unpalatable events. We will continue to monitor the
Company's financial position to ensure the Company has sufficient
capital to bring our strategy to recover our assets to a successful
conclusion. On behalf of the Board, I should like to thank our
investors once again for their support.
Sir Henry Bellingham
Chairman
27 June 2017
Consolidated Income Statement
for the Year Ended 31 December 2016
2016 2015
GBP'000 GBP'000
CONTINUING OPERATIONS
Revenue - -
Other operating income 161 3
Administrative expenses (743) (1,104)
-------- ----------
OPERATING LOSS (582) (1,101)
Finance income - 8
-------- ----------
LOSS BEFORE INCOME TAX (582) (1,093)
Income tax - -
-------- ----------
LOSS FOR THE YEAR (582) (1,093)
======== ==========
Loss attributable to:
Owners of the parent (582) (1,093)
======== ==========
Loss per share expressed in
pence per share:
Basic (0.44) (1.05)
Diluted (0.44) (1.05)
======== ==========
Consolidated Statement of Comprehensive Income
for the Year Ended 31 December 2016
2016 2015
GBP'000 GBP'000
LOSS FOR THE YEAR (582) (1,093)
OTHER COMPREHENSIVE INCOME - -
-------- --------
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR (582) (1,093)
======== ========
Total comprehensive income attributable
to:
Owners of the parent (582) (1,093)
======== ========
Consolidated Statement of Financial Position
31 December 2016
2016 2015
GBP'000 GBP'000
ASSETS
NON-CURRENT ASSETS
Property, plant and 1 -
equipment
Investments - -
--------- ---------
1 -
--------- ---------
CURRENT ASSETS
Trade and other receivables 65 94
Cash and cash equivalents 134 80
--------- ---------
199 174
--------- ---------
TOTAL ASSETS 200 174
========= =========
EQUITY
SHAREHOLDERS' EQUITY
Called up share capital 18,345 18,289
Share premium 11,445 11,022
Retained earnings (29,851) (29,269)
--------- ---------
TOTAL EQUITY (61) 42
--------- ---------
LIABILITIES
CURRENT LIABILITIES
Trade and other payables 261 132
--------- ---------
TOTAL LIABILITIES 261 132
--------- ---------
TOTAL EQUITY AND
LIABILITIES 200 174
========= =========
The financial statements were approved by the Board of Directors
on 27 June 2017 and were signed on its behalf by:
RP Easby - Director
Company Statement of Financial Position
31 December 2016
2016 2015
GBP'000 GBP'000
ASSETS
NON-CURRENT ASSETS
Property, plant and 1 -
equipment
Investments - -
--------- ---------
1 -
--------- ---------
CURRENT ASSETS
Trade and other receivables 65 94
Cash and cash equivalents 134 80
--------- ---------
199 174
--------- ---------
TOTAL ASSETS 200 174
========= =========
EQUITY
SHAREHOLDERS' EQUITY
Called up share capital 18,345 18,289
Share premium 11,445 11,022
Retained earnings (29,850) (29,269)
--------- ---------
TOTAL EQUITY (60) 42
--------- ---------
LIABILITIES
CURRENT LIABILITIES
Trade and other payables 260 132
--------- ---------
TOTAL LIABILITIES 260 132
--------- ---------
TOTAL EQUITY AND
LIABILITIES 200 174
========= =========
The financial statements were approved by the Board of Directors
on 27 June 2017 and were signed on its behalf by:
RP Easby - Director
Consolidated Statement of Changes in Equity
for the Year Ended 31 December 2016
Called Retained Share Total
up earnings premium equity
share
capital
GBP'000 GBP'000 GBP'000 GBP'000
Balance at 1 January
2015 18,289 (28,176) 11,022 1,135
Changes in equity
Total comprehensive income - (1,093) - (1,093)
--------- ----------- --------- --------
Balance at 31 December
2015 18,289 (29,269) 11,022 42
--------- ----------- --------- --------
Changes in equity
Issue of share capital 56 - 423 479
Total comprehensive income - (582) - (582)
--------- ----------- --------- --------
Balance at 31 December
2016 18,345 (29,851) 11,445 (61)
========= =========== ========= ========
Company Statement of Changes in Equity
for the Year Ended 31 December 2016
Called Retained Share Total
up earnings premium equity
share
capital
GBP'000 GBP'000 GBP'000 GBP'000
Balance at 1 January
2015 18,289 (28,307) 11,022 1,004
Changes in equity
Total comprehensive income - (962) - (962)
-------------- ----------- --------- --------
Balance at 31 December
2015 18,289 (29,269) 11,022 42
-------------- ----------- --------- --------
Changes in equity
Issue of share capital 56 - 423 479
Total comprehensive income - (581) - (581)
-------------- ----------- --------- --------
Balance at 31 December
2016 18,345 (29,850) 11,445 (60)
============== =========== ========= ========
Consolidated and Company Statement of Cash Flows
for the Year Ended 31 December 2016
2016 2015
GBP'000 GBP'000
Cash flows from operating
activities
Cash generated from operations (423) (1,100)
-------- ----------
Net cash from operating
activities (423) (1,100)
-------- ----------
Cash flows from investing
activities
Purchase of tangible fixed (2) -
assets
Interest received - 8
-------- ----------
Net cash from investing
activities (2) 8
-------- ----------
Cash flows from financing
activities
Share issue 495 -
Share issue expenses (16) -
-------- ----------
Net cash from financing 479 -
activities
-------- ----------
Increase/(decrease) in
cash and cash equivalents 54 (1,092)
Cash and cash equivalents
at beginning of year 80 1,172
-------- ----------
Cash and cash equivalents
at end of the year 134 80
======== ==========
Notes to the Statements of Cash Flows
for the Year Ended 31 December 2016
1. RECONCILIATION OF LOSS BEFORE INCOME TAX TO CASH GENERATED
FROM OPERATIONS
Group
2016 2015
GBP'000 GBP'000
Loss before income tax (582) (1,093)
Depreciation charges 1 -
Finance income - (8)
-------- --------
(581) (1,101)
Decrease/(increase) in trade and
other receivables 29 (33)
Increase in trade and other payables 129 34
-------- --------
Cash generated from operations (423) (1,100)
======== ========
Company
2016 2015
GBP'000 GBP'000
Loss before income tax (581) (962)
Depreciation charges 1 -
Finance income - (8)
-------- --------
(580) (970)
Decrease/(increase) in trade and
other receivables 29 (33)
Increase/(decrease) in trade and
other payables 128) (97)
-------- --------
Cash generated from operations (423) (1,100)
======== ========
2. CASH AND CASH EQUIVALENTS
The amounts disclosed on the Statements of Cash Flows in respect
of cash and cash equivalents are in respect of these Statement of
Financial Position amounts:
Group Company
Year ended 31 December
2016
31.12.16 1.1.16 31.12.16 1.1.16
GBP'000 GBP'000 GBP'000 GBP'000
Cash and cash equivalents 134 80 134 80
========= ======== ========= ========
Year ended 31 December
2015
31.12.15 1.1.15 31.12.15 1.1.15
GBP'000 GBP'000 GBP'000 GBP'000
Cash and cash equivalents 80 1,172 80 1,172
========= ======== ========= ========
Annual Report and Accounts
Copies of the Annual Report and Accounts, together with a notice
convening an annual general meeting, are being posted to
shareholders shortly and will be 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 11
a.m. on 8 November 2017 at Becket House, 36 Old Jewry, London, EC2R
8DD.
Enquiries:
Enquiries:
Pathfinder Minerals Plc
Nick Trew, Chief Executive
Tel. +44 (0)20 3440 7775
WH Ireland Limited (Nomad and Joint Corporate Broker)
Paul Shackleton or James Bavister
Tel. +44 (0)20 7220 1666
Beaufort Securities Limited (Joint Corporate Broker)
Jon Belliss or Elliot Hance
Tel. +44 (0)20 7382 8300
Vigo Communications (Public Relations)
Ben Simons or Ali Roper
Tel. +44 (0)20 7830 9700
Email. pathfinderminerals@vigocomms.com
Notes to Editors:
Pathfinder Minerals Plc is incorporated in England and is
admitted to trading on the AIM market of the London Stock
Exchange.
CMdN, a subsidiary of Pathfinder, was issued mining concession
licences 760C and 4623C on 13 September 2004 and 13 July 2011
respectively, each for a period of twenty-five years. Taken
together, these mining concessions cover approximately 32,000
hectares of land on the Indian Ocean coast of the Zambezia province
of Mozambique, known to contain the heavy minerals, ilmenite,
rutile and zircon.
As announced on 3 February 2012, ownership of these licences is
being disputed.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR OKODPPBKDBAB
(END) Dow Jones Newswires
June 28, 2017 02:00 ET (06:00 GMT)
Pathfinder Minerals (LSE:PFP)
Historical Stock Chart
From Mar 2024 to Apr 2024
Pathfinder Minerals (LSE:PFP)
Historical Stock Chart
From Apr 2023 to Apr 2024
