TIDMSGZ
RNS Number : 8820J
Scotgold Resources Ltd
14 September 2016
SCOTGOLD RESOURCES LIMITED
Re: Annual Report for the year ended 30 June 2016
Scotgold Resources Limited ("Scotgold" or "the Company")
(ASX:SGX) (AIM:SGZ) announces its final results for the year ended
30 June 2016. The Company's full annual report for the year to 30
June 2016 is now available on the Company's website and will be
posted to shareholders shortly. The financial information set out
within this announcement is not the audited results but has been
extracted from them. In addition to the audited financial results
for the year, the Annual Report contains an Operational Review that
is based on the operational updates that have been made by Scotgold
and contains no new material information.
ABOUT SCOTGOLD
Scotgold Resources Limited ("the Company") was established in
2007 and listed on the Australian Securities Exchange (ASX:SGZ) in
January 2008. The Company's shares were admitted to trading on the
AIM market of the London Stock Exchange (AIM:SGZ) in February 2010.
On 18 August 2016, the Company announced its intention to
voluntarily delist from the ASX, subject to ASX approval.
The Company's principal objective, since listing, has been the
advancement of the Cononish Gold and Silver Project in Scotland's
Grampian Highlands to a production decision and the ongoing
exploration of the highly prospective tenements comprising the
Grampian Gold Project (which is described in greater detail below)
with the view of identifying further project opportunities.
Although the Company's initial application for planning
permission to develop the project in 2010 was rejected, the Company
submitted a revised application and on 25th October 2011, the Board
of the Loch Lomond and the Trossachs Parks ("the Parks Board")
unanimously approved the application subject to the conclusion of
various legal agreements and agreement on a number of outstanding
conditions. These were successfully concluded and on 15th February
2012, the Parks Board issued the Decision Letter granting planning
permission for the development. The Crown Estate Commissioners
unconditional grant of the Crown Lease was confirmed in May
2012.
During 2014, the Company made an application to vary this
planning permission (relating to hours of operation of the
processing plant and work on site) and on 24 January 2015, the
Board of the Loch Lomond and the Trossachs National Park again
voted unanimously to approve the Company's application. As a
variation to a condition of the existing consent, this approval
also has the effect of extending the date by which development
should commence to January 2018.
In January 2015 the Company completed a Mineral Resource
Estimate and subsequently in August 2015 completed a Bankable
Feasibility Study for the Cononish Project. On 24 February 2016 the
Company announced its intention to conduct a Bulk Processing Trial
("BPT") and on 27 August 2016 the first official gold pour from the
BPT was announced. The results and experience gained from the BPT
will allow the Company to investigate whether a "phased" mine
development approach would be viable and could achieve higher
returns to shareholders with a lower peak funding requirement.
Whilst the Company continues to examine financing options to bring
the project to a development decision, it is not expected that
financing agreements will be entered into prior to the outcomes of
the BPT being fully considered.
The Grampian Gold Project comprises Crown Option agreements
covering some 4100 km(2) in the south west Grampians of Scotland
and covers some of the most prospective areas of the Dalradian
geological sequence in the UK. This sequence extends westward from
the UK to the eastern seaboard of Canada and the Appalachian belt
in the US, and eastward into Sweden and Norway, has been identified
by the British Geological Survey as being highly prospective for
both significant gold and base metal deposits. On a more local
scale, the Dalradian sequence extends to the south west from
Scotland into Northern Ireland where it hosts other gold resources
at Cavancaw (c. 0.8 Moz of gold) and Curraghinalt (c. 3.5M oz of
gold).
The Company is conducting a regional stream sediment sampling
program over the wider Grampian gold project area whilst continuing
to evaluate a number of previously identified high grade outcrops
in the vicinity of the Cononish project.
In May 2016, the Company announced the acquisition of the Pomar
licence area in eastern central Portugal by its wholly owned
Portuguese subsidiary, Scotgold Resources Portugal Ltda.
OPERATIONAL REVIEW
The Company's business is directed by the Board and managed by
the Chief Executive Officer, supported by an executive team
comprising CFO and Technical Director, and by the non-executive
Chairman. The Executive team and Chairman are UK resident and
day-to-day activities are managed from the Company's representative
office in Tyndrum, Scotland.
In addition to the Chairman, CEO and Technical Director, the
Board has 2 further non-executive directors based in Perth, Western
Australia, where the Company also has its registered address and
Company Secretary located.
CONONISH GOLD AND SILVER PROJECT
During the year, the Company focussed on the completion the
Bankable Feasibility Study ("BFS"), following a review and
optimisation of the 2013 Cononish development plan. This BFS now
forms the basis for discussions with possible finance providers in
order to advance the project to production.
The key inputs to the BFS included
-- A revised Mineral Resource Estimate for the project completed by CSA Global (UK) Limited
-- A gap analysis of the 2013 Cononish Development Plan to
identify areas requiring further input to meet BFS standards
-- A trade off study examining alternative mining methods and
means of access to optimise project returns
-- A variation to the existing planning permission to facilitate
24 hour / 6 day plant operations (as opposed to 16 hour / 6
day)
Based on the results of the above studies, a Bankable
Feasibility Study (BFS) was completed for the project by Bara
Consulting Ltd, highlights of which are shown in Table 1 below
Table 1: Cononish Gold and Silver Project BFS Highlights
PRODUCTION
-----------------------------------------------------------------
Average Production 72,000 tonne per annum
Average LoM Grade (Au 11.8 gram/tonne
Eq)
Average Metal Produced 23,370 ounces equivalent
gold* per annum
Life of Mine 8 years
------------------------------- --------------------------------
FINANCIAL (at Gold US$1,100/oz & Silver US$15/oz)
-----------------------------------------------------------------
Peak Funding Requirement GBP18.5M
Total LoM Capital Expenditure GBP24M
Unit Operating Costs GBP327/ ounce equivalent
gold (US$523/ ounce equivalent
gold)
EBITDA GBP67M
NPV (10%) pre-tax GBP23M
IRR pre-tax 45%
Payback Period 19 months
------------------------------- --------------------------------
* Ounces equivalent gold = ounces gold + ounces silver*15/1100 -
ratio calculated at base case prices of $1100/oz Au and $15.00/oz
Ag
The study demonstrates:
-- Robust Project economics using a base case gold price of
US$1,100/ounce (GBP688/ounce) with an EBITDA of GBP67.4M, a pre-tax
free cashflow of GBP43.4M, pre-tax NPV(10%) of GBP22.5M and a
pre-tax IRR of 45%.
-- Low operating costs with Life of Mine ('LoM') average of
GBP327/ounce equivalent gold (US$523/ounce equivalent gold)
(including Royalties) and Project breakeven (0% IRR) at US$689/
ounce equivalent gold
-- Peak Funding Requirement of GBP18.5M and all in LoM Capital
including contingencies, replacements etc. of GBP24.0M
-- Average annual gold production of 23,370 ounce equivalent
gold with peak production in Year 2 of 28,540 ounce equivalent
gold.
-- Average LoM grade of 11.8 grams equivalent gold / tonne and
peak grade of 15.4 grams equivalent gold / tonne in year 2.
-- Rapid Implementation schedule of 16 months post contract and
finance completion and short Payback Period of 19 months from full
production.
Details of the material assumptions considered in the derivation
of the production target and forecast financial information above
and the BFS Study Executive Summary are provided on Scotgold's
website at www.scotgoldresources.com.au- ASX releases - 05/08/2015
- Cononish Gold and Silver Project Bankable Feasibility Study and
Bankable Feasibility Study - Executive Summary.
Mineral Resources
The Mineral Resource Estimate ("MRE") is classified as Measured,
Indicated and Inferred Mineral Resources, (adhering to guidelines
set out in the JORC Code (2012 Edition)), and is reported at a
cut-off grade of 3.5 g/t gold as is presented in Table 2 below.
Table 2 also serves as the Company's Annual Mineral Resource
Statement.
Table 2: Annual Mineral Resource Statement as at 30/06/2016
Cononish Main Vein Gold and Silver Mineral Resources, prepared
in accordance with the JORC code (2012 Edition) and reported at a
3.5 g/t Au cut-off as at 12/01/2015, which remain current.
Please see link below to Table 2:
http://www.rns-pdf.londonstockexchange.com/rns/8820J_1-2016-9-14.pdf
Note: Mineral Resources presented above include Ore Reserves
stated below.
There is no change in the Mineral Resources reported as at
30/06/2015. An internal review of the Mineral Resource Estimate
concluded that the estimation techniques and parameters employed
remained appropriate.
The Cononish mineralisation remains open at depth down plunge
and to the west along strike. There is therefore potential to add
to the resource by further extensional drilling.
In addition to the currently defined Mineral Resources, Scotgold
believes that there is additional resource development potential
close to the Cononish mine, subject to appropriate and successful
further work. Extensive gold-in-soil anomalies, mineralisation
associated with outcrops and trenching and geophysical anomalies
close to the current resource clearly warrant further follow up. In
addition, there are indications that other reefs are present in the
area too. At this stage, such figures are highly conceptual and
there is no guarantee that further exploration will define
additional Mineral Resources.
Ore Reserves
As part of initial work towards developing the BFS, Bara
Consulting Ltd completed a thorough review of the 2013 Cononish
Development plan in order to identify opportunities to not only
improve on the plan but to also improve the confidence in the plan.
As a result of this review, further work was undertaken on the
mining methodology, access design, geotechnical evaluation and
overall mine design.
The outcome of this work was that an Ore Reserve Estimate was
completed on 25 May 2015, in accordance with the JORC code (2012
Edition) based on the Mineral Resource Estimate (MRE) issued in
January 2015.
There is no change to the Ore Reserves reported for the project
as of 30/06/2015. An internal review of the Ore Reserve Statement
concluded that the modifying factors used in determining the Ore
Reserve remained appropriate and negligible depletion had occurred
in the period.
Table 3 Annual Ore Reserve Statement as at 30/06/2016
As at 25 May 2015 (JORC 2012 Code)
------------------------------------------------------
Classification Proven Probable Total
--------------------- --------- ----------- -------
Tonnes ('000) 65 490 555
--------------------- --------- ----------- -------
Au Grade (g/t) 11.5 11.1 11.1
--------------------- --------- ----------- -------
Au Metal (k oz) 24 174 198
--------------------- --------- ----------- -------
Ag Grade (g/t) 51.5 47.2 47.7
--------------------- --------- ----------- -------
Ag Metal (k oz) 108 743 851
--------------------- --------- ----------- -------
(Bara Consulting Limited Ore Reserve Statement
dated May 2015)
------------------------------------------------------
For greater detail on the parameters derived from this work and
used for the Ore Reserve estimation process, refer to ASX release
(26/05/2015 - Cononish Gold Project Study Update and Reserve
Estimate) on the Company's website.
Both the Mineral Resource Estimate and Ore Reserve statement
were compiled by suitably qualified Independent Competent Persons
(see below)
Bulk Processing Trial
In February 2016 the Company announced its intention to
undertake a Bulk Processing Trial" (BPT) at Cononish. The principal
objectives of the BPT are to demonstrate the marketability and
profitability of Scottish gold production from Cononish. It will
also give further confidence to metallurgical test-work already
completed and to provide a basis for a review of the current
development plan under the current Bankable Feasibility Study.
The planning application for the BPT was approved by the Loch
Lomond & The Trossachs National Park Planning Authority in
April 2016 and a small scale pilot plant was installed and
commissioned by June 2016. This plant will treat around 2,400t
(approximately 1,200 m3) over approximately a six-month period,
sourced from a stockpile of approximately 7000t of ore grading
around 7.9g/t Au and 39g/t Ag stockpiled on the mine 'platform' at
Cononish. The material to be treated forms part of the Probable
Reserves for the project (refer ASX and AIM announcements dated
25/05/2015 and 26/05/2015 respectively).
The process employed will be purely physical by crushing of the
ore and using gravity separation via a centrifugal device to
separate the high grade gold concentrate, similar to the planned
full scale plant. However, the flotation circuit process has been
replaced by a spiral bank to generate a sulphide, gold rich
concentrate. This concentrate is then further upgraded via a
shaking table and the final gold rich output from both the
centrifugal device and spiral are smelted to produce a small
quantity of doré (an impure bullion 'bar'). As no chemicals are
being used on site as part of the BPT this gold generated can be
classified as "ethical". The majority of the gold however remains
in the sulphide concentrate which for the purposes of the BPT will
be sold without further processing once economic shipping
quantities have been produced.
Metallurgical recovery and unit processing costs in the BPT are
not expected to achieve the planned results of the full scale
gravity/float plant process in the Cononish Bankable Feasibility
Study. They may, however, prove sufficiently attractive to justify
investigating a lesser scale, lower upfront capital, earlier
commercial production phase in advance of the full production phase
as originally planned.
This can only be assessed once the initial results of the BPT
are known. At that stage a revised mining plan, infrastructure
development plan, capital/operating costs estimates and project
returns can be determined. If a viable phased development route can
be identified, it is likely to have a significantly lower peak
financing requirement than the current BFS, as certain capital
expenditures may either be able to be deferred or "self-funded"
through early cashflow.
It should be noted that any such revised plan would require
consultation with various stakeholders, including Loch Lomond &
The Trossachs National Park Planning Authority and The Crown
Estate, among others.
GRAMPIAN GOLD PROJECT
The Company continues to actively pursue exploration activities
on its substantial land position in the Dalradian group of the
south west Grampians, a terrain highly prospective for both gold
and potential base metal occurrences. The majority (85%) of the
area currently under option to Scotgold is located outside the Loch
Lomond and the Trossachs National Park.
Whilst advancing the Cononish project to production, the
Company's strategy has been to conduct early stage regional
exploration over the Grampian Gold project area in conjunction with
follow up work on the more advanced prospects close to the Cononish
project area.
The Grampian Gold project encompasses a large area (4100 km(2) )
of the highly prospective Dalradian sequence. Basic exploration
data, including gravity and airborne magnetics, is available from
government surveys but is of a quality and spacing that does not
adequately reflect the prospectivity of the area. This, and the
general lack of previous exploration over the area (other than
early stage exploration in the vicinity of the Cononish project),
has dictated the Company's approach to exploration.
In order to advance its understanding of the regional setting
the Company embarked on a regional scale stream sediment sampling
program. In an initial wide spaced regional program, in excess of
750 stream sediment samples were taken across the project area.
Interpretation of these results continues and this program has been
followed up by a more detailed infill sampling program in the
anomalous result areas in order to further target areas for
detailed fieldwork and prospecting. To date in excess of 1200
samples have been collected with interpretation of these results
on-going, in conjunction with work undertaken by Drs. Gumiel and
Arias (see below).
In parallel with this regional program, Scotgold continues to
evaluate previously identified high grade outcrop samples
identified by previous exploration close to the Cononish project.
Initially, the Company conducted a re-sampling program to verify
previously identified occurrences and this program confirmed the
presence of a large number of high grade gold / silver vein
outcrops in an area located between two major regional faults, the
Tyndrum - Glen Fyne fault and the Ericht - Laidon fault, and
associated with the fractures generated by movement along these
faults.
Considerable follow up work has been undertaken to examine the
extent of these occurrences through further fieldwork, detailed
rock chip sampling, initial short surface drilling and (in some
cases) deeper diamond drilling and the Company believe that further
significant exploration expenditure is justified on many of these
prospects when financing is available. The most advanced of these
prospects include:
1) the River Vein area - diamond drilling below exceptionally
high grade surface rock chip samples has proved structural
continuity of a vein structure to a depth of approximately 100m and
a similar strike extent as defined by current drilling and remains
open along strike and at depth: this warrants further diamond
drilling (see Press Release - Exploration Progress at River Vein -
30/01/2012).
2) the Sron Garbh mafic / ultramafic complex - short surface
drilling intersected highly anomalous grades of Gold, Platinum,
Palladium, Copper Nickel and Cobalt, in and close to the 'Gabbroic
/ Appinitic' zone of the complex. Mineralisation is seen to be
contained in 'sulphide blebs' in a 'leopard rock' textured zone.
These characteristics are diagnostic of the worldwide 'magmatic Cu
- Ni - PGE - Au' group of deposits associated with mafic /
ultramafic intrusives such as Aguablanca in Spain, certain parts of
the Sudbury mines in Ontario, Canada; Voisey's Bay in Labrador
Canada and Lac des Isles in Quebec, Canada. Such deposits occur as
sulphide concentrations (massive through to disseminated sulphides)
associated with a variety of mafic and ultramafic magmatic rocks
(see Press Release - Highly Anomalous Platinum Group Metals Gold
and Base metals - 07/03/2012).
3) the Auch / Beinn Odhar veins - shallow surface drilling below
one of the identified high grade outcrops confirmed its
prospectivity and a considerable number of the other currently
identified outcrops require initial short surface drilling as a
precursor to further more intensive drilling.
In June 2015, Scotgold Resources Ltd engaged the services of Dr.
Pablo Gumiel and Dr. Monica Arias, of Consulting de Geología y
Minería, S.L., to conduct a structural study and initial analysis
of Scotgold's extensive GeographicInformation System (GIS) database
covering the Grampian Gold project. The study aimed to develop a
structural model, focused on the Cononish deposit, to improve the
understanding of the evolution of gold and silver mineralisation in
the Tyndrum area. The study then combined the extensive existing
geochemical database with structural data from Drs Gumiel and
Arias' recent fieldwork, using new analytical techniques to assess
various aspects of prospectivity and develop an initial
prospectivity map. The map uses techniques that take account of a
number of geological parameters identified in the study as critical
to locating potential economic mineralisation, including:
-- High grade rock outcrop data
-- Fracture density
-- Typology (characteristics) of the vein structures / systems
-- Other GIS based historic data
Through 3 Dimensional (3D) geological and GIS modelling, a
preliminary prospectivity map was developed for the study area to
identify areas of high priority and potential, using a weighted
gridding method.
Based on the resulting prospectivity map, the study has
identified a series of high priority targets, with 6 being located
within a 2.5 km radius of Cononish, including 2 outside the Loch
Lomond and Trossachs National Park (LLTNP). A further 5 have been
identified within the studied area, all of which are outside the
LLTNP. Close to the Cononish deposit, Coire Nan Sionnach and
Kilbridge are highlighted as highly prospective, along with two
further parallel anomalies between the Cononish deposit and Coire
Nan Sionnach. Outside this area, the map has re-highlighted the
Beinn Udlaidh and Arrivain areas in particular as important targets
for ongoing exploration. Based on the ranking in the study, the map
shows the area to have a prospectivity at least comparable, if not
higher, than the Cononish deposit. In addition, Glen Orchy (River
Vein and Tom a Chro), Sron Garbh and Coire Chailein are indicated
to have a high ranking warranting further exploration.
The study has distinguished a number of high priority vein
systems / structures from those less likely to carry economic
mineralisation and indicates the high potential for Cononish style
mineralisation in the Glen Orchy option area. Further work is being
planned for these targets during 2017 and will include applying the
techniques used in this study to veins / structures in the highly
prospective areas, in addition to traditional exploration
techniques.
POMAR PROJECT
In May 2016, the Company announced the acquisition of the Pomar
licence area in eastern central Portugal by its wholly owned
Portuguese subsidiary, Scotgold Resources Portugal Ltda. Subsequent
to this announcement a party of Scotgold staff and independent
consultants visited the licence area to conduct an initial site
visit. The Scotgold party was accompanied by independent
consultant, Mr. Peter Flindell, an exploration geologist with a
background in a wide range of commodities and of bringing
exploration projects to commercial production.
The Pomar licence area includes the historic antimony mines of
das Gatas, Pomar and Casalinho, in addition to numerous small scale
trials and occurrences. Re-evaluation of the mineralisation during
the site visit indicated there may be two separate mineralising
events, an early antimony and later gold event. This opens up the
potential for undiscovered gold prospects in zones with quartz-only
mineralisation, given previous exploration efforts have focused on
antimony mineralisation in the region.
The initial program proposed for the Pomar licence area is
modest (cica GBP30,000) and consists of historical data collection
& analysis, a mapping program and a soil sampling assay
program. There is significant historical data available from
previous exploration companies, including Billiton and Indumetal,
comprising assay results and geophysical data. The Company intends
to access and evaluate the historical data available in the licence
area to aid further exploration efforts.
The soil sampling program is based around existing samples taken
by the previous licence holder. These samples were not analysed,
providing a great opportunity for Scotgold to gain a large volume
of data quickly and cost-effectively and gather an overview of gold
occurrences in the licence area. This field work will be supervised
by our Country Manager Joao Barros, a geologist with extensive
local knowledge and previous work experience of the Pomar licence
area, under the guidance of Scotgold Projects Geologist Dr Nyree
Hill.
A mapping program will focus on stratigraphic and structural
mapping to identify the possibility for more wide scale gold
occurrences and aid understanding the controls on mineralisation
types across the Pomar licence area. This work is anticipated to be
completed by Dr. Pablo Gumiel and Dr. Monica Arias, who have an
existing working relationship with the Company having carried out
the highly successful structural study within the Grampian Project
last year.
Competent Persons Statement:
The information in this report that relates to Exploration
Results is based on information compiled by Mr David Catterall, Pr
Sci Nat, who is a member of the South African Council for Natural
Scientific Professions. Mr Catterall is employed as a consultant to
Scotgold Resources Ltd. Mr Catterall has sufficient experience
which is relevant to the style of mineralisation and type of
deposit under consideration and to the activity which he is
undertaking to qualify as a Competent Person as defined in the 2012
Edition of the 'Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves'. Mr Catterall consents
to the inclusion in the report of the matters based on his
information in the form and context in which it appears.
Note: No new exploration results are presented in this report.
All results have been previously notified under JORC 2004 and are
contained in Scotgold Annual reports 2008 - 2015 and various
corresponding market releases.
The information in this report that relates to the 2015 Mineral
Resources for Cononish Gold Project (refer ASX release - Resource
Estimate Update - 22/01/2015) is based on information compiled by
Malcolm Titley, a Competent Person who is a Member of The
Australasian Institute of Mining and Metallurgy. Mr Titley is
employed by CSA Global (UK) Limited, an independent consulting
company. Mr Titley has sufficient experience which is relevant to
the style of mineralisation and type of deposit under consideration
and to the activity which he is undertaking to qualify as a
Competent Person as defined in the 2012 Edition of the
'Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves'. Mr Titley consents to the inclusion in
the report of the matters based on his information in the form and
context in which it appears.
The information in this report that relates to the 2015 Ore
Reserves for Cononish Gold Project (refer ASX announcement dated
26/05/2015) is based on information compiled by Pat Willis, a
Competent Person who is registered as a Professional Engineer
(Pr.Eng.) with the Engineering Council for South Africa (ECSA) and
a Fellow in good standing and Past President of the Southern Africa
Institute of Mining and Metallurgy (FSAIMM). Mr Willis is employed
by Bara Consulting Limited, an independent consulting company. Mr
Willis has sufficient experience which is relevant to the style of
mineralisation and type of deposit under consideration and to the
activity which he is undertaking to qualify as a Competent Person
as defined in the 2012 Edition of the 'Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore
Reserves'. Mr Willis consents to the inclusion in the report of the
matters based on his information in the form and context in which
it appears.
Further, the Company confirms it is not aware of any new
information or data that materially affects the information
contained in the original announcements and that all material
assumptions and technical parameters underpinning the estimate of
Resources and Reserves continue to apply and have not materially
changed.
Tenement details
The Company holds a lease (100%) from the Crown Estate
Commissioners over Cononish Farm, county of Perth, Scotland UK.
The Company holds a lease (100%) from the landowner over
Cononish Farm, county of Perth, Scotland UK.
The Company holds five Mines Royal Option Agreements (100%) with
the Crown Estate Commissioners as detailed below:
Glen Orchy: Location - counties of Perth and Argyll, Scotland
UK
Glen Lyon: Location - counties of Perth and Argyll, Scotland
UK
Inverliever: Location - counties of Dunbarton, Argyll and Perth,
Scotland UK
Knapdale: Location - county of Argyll, Scotland UK
Ochils: Location - county of Clackmannan, Perth, Kinross and
Stirling, Scotland UK
The Company announced on 12 May 2016 that wholly owned
Portuguese subsidiary, Scotgold Resources Portugal Ltda, had been
granted the Pomar Licence. The Company now owns a 100% interest in
the Pomar Licence which is valid for 3 years (with an option to
extend) and covers 264km(2) in eastern central Portugal, near
Castelo Branco.
No other beneficial interests are held in any farm-in or
farm-out agreements.
No other beneficial interests in farm-in or farm out agreements
were acquired or disposed of during the period.
STRATEGIC REVIEW
The Company's goal is to become a profitable long term gold
producer, operating in low risk environments. To this end our
immediate focus is the development of the advanced Cononish Gold
and Silver Project in Scotland. To provide longevity beyond
Cononish, and potentially growth in overall production, the Company
is developing a pipeline of projects that we anticipate will meet
our criteria. First and foremost of these is our Grampian Project
which consists of 5 Option Agreements ("Exploration Licences") in
Scotland and includes the highly prospective ground in the vicinity
of Cononish. In addition we have this year acquired the Pomar
Licence in Portugal and we are pursuing opportunities in
France.
Since the recapitalisation of the Company in 2014, we have made
excellent progress at Cononish, including new Mineral Resource
Estimate, Ore Reserve Estimate, Bankable Feasibility Study (BFS)
and most recently the Bulk Processing Trial (BPT). The BFS
demonstrated the viability of Cononish and the next logical step
would have been its finance and construction. The environment in
2015 however proved difficult, with limited appetite for a project
of our relatively small size in the natural resource sector and in
gold in particular. As a result we had not secured a funding
package on terms acceptable to our shareholders by the end of the
calendar year. At the beginning of 2016 a decision was taken to
advance the project on a more modest scale and the BPT was
announced and then successfully implemented.
Over the last 6 months in particular, we believe the finance
market for gold projects has significantly improved. The BFS was
conducted as a base case gold price of $1,100/oz or GBP687/oz,
whereas the current price (6/9/2016) is approx. $1,340 which now
equates to approx. GBP1,000/oz. In addition to the improved finance
market, early indications from the BPT are that there will be
opportunities to improve the project's development plan, through a
phased development approach that will reduce the peak funding
requirement. Furthermore the experienced gained from operating the
pilot plant is reducing future technical risk and the anticipated
premium that will be achieved on "Scottish" gold will further
enhance the projects upside.
With regards to the future pipeline of projects, we have also
made good progress. The structural study completed over Cononish
and areas of the Grampian project has enabled us to prioritise the
prospects and it is expected that this will enable us to more cost
effectively progress these going forward. Similarly the Pomar
project has a significant dataset available which will enable us to
cost effectively asses its prospectivity and inform our future
strategy accordingly.
The Board of directors has also made strides to adapt the
Company to best serve our geographical, operational focus and
goals. The Company Secretarial function performed in Perth, Western
Australia has been outsourced and we are in the process of moving
our financial accounting function to the UK. This will become more
critical as the level of activity associated with the Cononish
project continues to build. Also as previously mentioned, the
Company has applied to the ASX to voluntarily delist. The decision
to de-list from the ASX is due to a number of factors including the
limited trading volume of securities in Scotgold on the ASX over a
sustained period of time. Over the past 6 months approximately 98%
of the securities trading occurred on AIM. Further, approximately
87% of the securities in Scotgold are held by UK residents or
already registered as DIs on AIM. The voluntary delisting from the
ASX will significantly reduce associated costs and management time,
as well as consolidate trading onto one market that our UK based
management team is best placed to serve.
Statement of Comprehensive Income
CONSOLIDATED
Notes
2016 2015
$ $
Revenue 2 1,459 10,607
Administration costs (438,021) (380,663)
Interest expense (983) (91,909)
Unwinding of convertible note
discount 11 (215,526) (110,338)
Depreciation and profit on disposal
of property, plant and equipment 3 (15,376) (19,097)
Exploration expensed as incurred (131,303) (393,196)
Employee and consultant costs (278,702) (290,597)
Listing and share registry costs (229,571) (174,758)
Legal fees (84,417) (185,448)
Borrowing costs - (174,419)
Share-based payments 14 - (13,615)
Office and communication costs (71,549) (106,503)
Other expenses (41,603) (183,029)
LOSS BEFORE INCOME TAX BENEFIT (1,505,592) (2,112,965)
Income tax benefit 4 - -
LOSS FOR THE YEAR (1,505,592) (2,112,965)
Other Comprehensive Income
Items that may be reclassified
to Profit or Loss
Exchange difference on translation
of foreign subsidiaries (94,490) 25,466
Total comprehensive result for
the year (1,600,082) (2,087,499)
============ ============
Basic (loss) per share (cents
per share) 24 (0.12) (0.25)
Statement of Financial Position CONSOLIDATED
2016 2015
$ $
CURRENT ASSETS
Cash and cash equivalents 738,866 802,649
Trade and other receivables 63,004 38,440
Inventory 26,993 -
Other current assets 21,109 23,712
Total Current Assets 849,972 864,801
------------- ---------------
NON-CURRENT ASSETS
Trade and other receivables 89,977 102,649
Plant and equipment 348,626 104,605
Mineral exploration and
evaluation 15,730,586 14,794,913
Total Non Current assets 16,169,189 15,002,167
TOTAL ASSETS 17,019,161 15,866,968
------------- ---------------
CURRENT LIABILITIES
Trade and other payables 157,835 343,853
Other current liabilities 121,439 71,920
Interest bearing liabilities 1,124,409 -
------------- ---------------
1,403,683 415,773
NON-CURRENT LIABILITIES
Interest bearing liabilities - 1,353,783
------------- ---------------
- 1,353,783
TOTAL LIABILITIES 1,403,683 1,769,556
NET ASSETS 15,615,478 14,097,412
============= ===============
EQUITY
Issued capital 25,829,677 22,711,529
Reserves 344,515 1,463,805
Accumulated losses (10,558,714) (10,077,922)
TOTAL EQUITY 15,615,478 14,097,412
============= ===============
Statement of Changes in Equity
CONSOLIDATED
Issued Accumulated Options Convertible Foreign Total
Capital Losses Reserve Note Currency Equity
Reserve Translation
Reserve
Year Ended 30 June 2015 $ $ $ $ $
Balance 1 July 2014 18,463,121 (7,964,957) 1,038,154 - (59,985) 11,476,333
Placements 1,586,215 - - - - 1,586,215
Entitlements Issue 2,861,177 - - - - 2,861,177
Options issued - - 103,615 - - 103,615
Share issue expenses (198,984) - - - - (198,984)
Equity portion of notes
issued - - - 356,555 - 356,555
Total comprehensive
result for the year - (2,112,965) - - 25,466 (2,087,499)
----------- ------------- ---------- ------------ ------------- ------------
As at 30 June 2015 22,711,529 (10,077,922) 1,141,769 356,555 (34,519) 14,097,412
=========== ============= ========== ============ ============= ============
Year Ended 30 June 2016 $ $ $ $ $
Balance 1 July 2015 22,711,529 (10,077,922) 1,141,769 356,555 (34,519) 14,097,412
Placements 1,053,904 - - - - 1,053,904
Entitlements Issue 1,476,010 - - - - 1,476,010
Options exercised 254,388 - - - - 254,388
Share issue expenses (109,554) - - - - (109,554)
Equity portion of notes
converted 443,400 107,800 - (107,800) - 443,400
Options expiry - 917,000 (917,000) - -
Total comprehensive
result for the year - (1,505,592) - - (94,490) (1,600,082)
----------- ------------- ---------- ---------- ---------- ------------
As at 30 June 2016 25,829,677 (10,558,714) 224,769 248,755 (129,009) 15,615,478
=========== ============= ========== ========== ========== ============
Statement of Cash Flows
CONSOLIDATED
2016 2015
$ $
CASH FLOWS FROM OPERATING
ACTIVITIES
Payment to suppliers (1,343,403) (1,106,066)
Interest income received 326 5,709
Net Cash Outflow From Operating
Activities (1,343,077) (1,100,357)
------------ ------------
CASH FLOWS FROM INVESTING
ACTIVITIES
Payments for exploration
expenditure (1,050,176) (1,274,409)
Purchase of property, plant
and equipment (259,398) (2,400)
------------ ------------
Net Cash Outflow From Investing
Activities (1,309,574) (1,276,809)
------------ ------------
CASH FLOWS FROM FINANCING
ACTIVITIES
Proceeds from issue of shares
and options 2,784,301 4,136,178
Share and option issue transaction
costs (109,553) (198,984)
Borrowings net of costs - 1,600,000
Loan repayments - (3,031,286)
------------ ------------
Net Cash Inflow From Financing
Activities 2,674,748 2,505,908
------------ ------------
Net increase in cash held 22,097 128,742
Effect of exchange rate fluctuations
on cash and cash equivalents (85,880) 33,050
Cash and cash equivalents
at the beginning of this
financial year 802,649 640,857
Cash and cash equivalents
at the end of this financial
year 738,866 802,649
============ ============
Notes
NOTE 1 - STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Preparation
These financial statements are general purpose financial
statements, which have been prepared in accordance with the
requirements of the Corporations Act 2001, Accounting Standards and
Interpretations and comply with other requirements of the law. Cost
is based on the fair value of the consideration given in exchange
for assets.
The financial statements have also been prepared on a historical
cost basis. The financial statements are presented in Australian
dollars.
The company is a listed public company, incorporated in
Australia and operating in Australia, Scotland France and Portugal.
The entity's principal activity is mineral exploration.
The accounting policies detailed below have been consistently
applied to all of the years presented unless otherwise stated. The
financial statements are for the consolidated entity consisting of
Scotgold Resources Limited and its subsidiaries.
Reporting Basis and Conventions
The financial statements have been prepared on the basis of
accounting principles applicable to a going concern, which assumes
the commercial realisation of the future potential of the
consolidated entity's assets and the discharge of their liabilities
in the normal course of business. At balance date, the consolidated
entity had current assets of $849,972 and current liabilities of
$1,403,683. Subsequent to balance date, additional cash funds of
$880,000 have been raised through the placement of shares. In
addition, the conversion into share capital of $220,000 of
Convertible Notes has reduced current liabilities by this
amount.
The consolidated entity is also anticipating revenues over the
ensuing twelve month period from gold sales derived from its Bulk
Processing Trial. The conversion of some or all of the remaining
Convertible Notes (refer Note 12) would further enhance the
financial position of the Consolidated entity.
While the Board considers that the consolidated entity is a
going concern it is also recognised that additional funding may be
required to ensure that the consolidated entity can continue to
fund its operations and further their mineral exploration and
evaluation activities during the twelve-month period from the date
of this financial report. Such additional funding can potentially
be derived from either one or a combination of the following:
-- Loan funds
-- Exercise of outstanding Share Options
-- The placement of securities under the ASX Listing Rule 7.1 or otherwise;
-- An excluded offer pursuant to the Corporations Act 2001; or
-- The sale of assets.
Accordingly, the Directors believe the consolidated entity will
obtain sufficient funding to enable it and the consolidated entity
to continue as going concerns and that it is appropriate to adopt
that basis of accounting in the preparation of the financial
report.
However, the existence of the above conditions constitutes a
material uncertainty that may cast significant doubt in relation to
the consolidated entity's ability to continue as a going concern
and whether it will therefore realise its assets and extinguish its
liabilities in the normal course of business.
Statement of Compliance
The financial report was authorised for issue on 14 September
2016.
The financial report complies with Australian Accounting
Standards, which include Australian equivalents to International
Financial Reporting Standards (AIFRS). Compliance with AIFRS
ensures that the financial report, comprising the financial
statements and notes thereto, complies with International Financial
Reporting Standards (IFRS).
Adoption of new and revised standards
Changes in accounting policies on initial application of
Accounting Standards
In the year ended 30 June 2016, the Directors have reviewed all
of the new and revised Standards and Interpretations issued by the
AASB that are relevant to the consolidated entity's operations and
effective for the current annual reporting period.
It has been determined by the Directors that there is no impact,
material or otherwise, of the new and revised Standards and
Interpretations on its business and, therefore, no change is
necessary to consolidated entity accounting policies.
The Directors have also reviewed all new Standards and
Interpretations that have been issued but are not yet effective for
the year ended 30 June 2016. As a result of this review the
Directors have determined that there is no impact, material or
otherwise, of the new and revised Standards and Interpretations on
the consolidated entity's business and, therefore, no change
necessary to the consolidated entity's accounting policies.
Accounting Policies
(a) Basis of Consolidation
A controlled entity is any entity controlled by Scotgold
Resources Limited. Control exists where Scotgold Resources Limited
has the capacity to dominate the decision-making in relation to the
financial and operating policies of another entity so that the
other entity operates with Scotgold Resources Limited to achieve
the objectives of Scotgold Resources Limited. All controlled
entities have a 30 June financial year-end.
All intercompany balances and transactions between entities in
the consolidated entity, including any unrealised profit or losses,
have been eliminated on consolidation. Accounting policies of
subsidiaries have been changed where necessary to ensure
consistencies with those policies applied by the parent entity.
Where controlled entities have entered or left the consolidated
entity during the year, their operating results have been included
from the date control was obtained or until the date control
ceased.
(b) Income Tax
The charge for current income tax expenses is based on the
profit for the year adjusted for any non-assessable or disallowable
items. It is calculated using tax rates that have been enacted or
are substantively enacted by the balance date.
Deferred tax is accounted for using the liability method in
respect of temporary differences arising between the tax bases of
assets and liabilities and their carrying amount in the financial
statements. No deferred income tax will be recognised from the
initial recognition of an asset or liability, excluding a business
combination, where there is no effect on accounting or taxable
profit or loss.
Deferred tax is calculated at the tax rates that are expected to
apply to the period when the asset is realised or liability is
settled. Deferred tax is credited in the statement of comprehensive
income except where it relates to items that may be credited
directly to equity, in which case the deferred tax is adjusted
directly against equity.
Deferred income tax assets are recognised to the extent that it
is probable that future tax profits will be available against which
deductible temporary difference can be utilised.
The amount of benefits brought to account or which may be
realised in the future is based on the assumption that no adverse
change will occur in income taxation legislation and the
anticipation that the consolidated entity will derive sufficient
future assessable income to enable the benefit to be realised and
comply with the conditions of deductibility imposed by the law.
(c) Plant and Equipment
Each class of plant and equipment is carried at cost less, where
applicable, any accumulated depreciation.
Plant and equipment are measured on the cost basis less
depreciation and impairment losses.
The carrying amount of plant and equipment is reviewed annually
by Directors to ensure it is not in excess of the recoverable
amount from these assets. The recoverable amount is assessed on the
basis of the expected net cash flows which will be received from
the assets employment and subsequent disposal. The expected net
cash flows have been discounted to their present values in
determining recoverable amounts.
Subsequent costs are included in the asset's carrying amount or
recognised as a separate asset, as appropriate, only when it is
probable that future benefits associated with the item will flow to
the consolidated entity and the cost of the item can be measured
reliably. All other repairs and maintenance are charged to the
statement of comprehensive income during the financial period in
which they are incurred.
Depreciation
The depreciable amount of all fixed assets including capitalised
lease assets, but excluding computers, is depreciated on a reducing
balance commencing from the time the asset is held ready for use.
Computers are depreciated on a straight line basis over their
useful lives to the consolidated entity commencing from the time
the asset is held ready for use.
The depreciation rates used for each class of depreciable assets
are:
Class of Fixed Asset: Depreciation
Rate:
Plant and Equipment 15 - 50%
The assets residual values and useful lives are reviewed, and
adjusted if appropriate, at each balance date.
An asset's carrying amount is written down immediately to its
recoverable amount if the asset's carrying amount is greater than
its estimated recoverable amount.
Gains and losses on disposals are determined by comparing
proceeds with the carrying amount. These gains and losses are
included in the statement of comprehensive income. When revalued
assets are sold, amounts included in the revaluation reserve
relating to that asset are transferred to retained earnings /
accumulated losses.
(d) Exploration and Evaluation Expenditure
Exploration and evaluation expenditure incurred is either
written off as incurred or accumulated in respect of each
identifiable area of interest. Tenement acquisition costs are
initially capitalised. Costs are only carried forward to the extent
that they are expected to be recouped through the successful
development of the areas, sale of the respective areas of interest
or where activities in the area have not yet reached a stage which
permits reasonable assessment of the existence of economically
recoverable reserves.
Accumulated costs in relation to an abandoned area are written
off in full against profit in the year in which the decision to
abandon the areas is made.
When production commences, the accumulated costs for the
relevant area of interest are amortised over the life of the area
according to the rate of depletion of the economically recoverable
reserves.
Exploration and evaluation expenditure is reclassified to
development expenditure once the technical feasibility and
commercial viability of extracting the related mineral reserve is
demonstrable.
A regular review is undertaken of each area of interest to
determine the appropriateness of continuing to carry forward costs
in relation to that area of interest.
Restoration, rehabilitation and environmental costs necessitated
by exploration and evaluation activities are expensed as incurred
and treated as exploration and evaluation expenditure.
(e) Impairment of Assets
At each reporting date, the Directors review the carrying values
of its tangible and intangible assets to determine whether there is
any indication that those assets have been impaired. If such an
indication exists, the recoverable amount of the assets, being the
higher of the asset's fair value less costs to sell and
value-in-use, is compared to the asset's carrying value. Any excess
of the asset's carrying value over its recoverable amount is
expensed to the statement of comprehensive income.
Where it is not possible to estimate the recoverable amount of
an individual asset, the consolidated entity estimates the
recoverable amount of the cash-generating unit to which the asset
belongs.
(f) Provisions
Provisions are recognised where there is a legal or constructive
obligation, as a result of past events, for which it is probable
that an outflow of economic benefits will result and that outflow
can be reliably measured.
(g) Cash and Cash Equivalents
Cash and cash equivalents includes cash on hand, deposits held
at call with banks, other short-term highly liquid investments that
are readily convertible to known amounts of cash and which are
subject to an insignificant risk of change in value.
(h) Revenue
Interest revenue is recognised on a proportional basis taking
into account the interest rates applicable to the financial
assets.
(i) Goods and Services Tax (GST) and Value Added Tax (VAT)
Revenues, expenses and assets are recognised net of the amount
of GST or VAT, except where the amount of GST or VAT incurred is
not recoverable from the relevant authority. In these circumstances
the GST or VAT is recognised as part of the cost of acquisition of
the asset or as part of an item in expenses. Receivables and
payables in the statement of financial position are shown inclusive
of GST or VAT.
(j) Issued Capital
Issued and paid up capital is recognised at the fair value of
the consideration received by the Company. Any transaction costs
arising on the issue of ordinary shares are recognised directly in
equity as a reduction of the share proceeds received.
(k) Comparative Figures
When required by Accounting Standards, comparative figures have
been adjusted to conform to changes in presentation for the current
financial year.
(l) Segment Reporting
Operating segments are reported in a manner consistent with the
internal reporting provided to the chief operating decision maker.
The chief operating decision maker, who is responsible for
allocating resources and assessing performance of the operating
segments has been identified as the Board of Directors of Scotgold
Resources Limited.
(m) Share based payments - shares and options
The fair value of shares and share options granted is recognised
as an expense with a corresponding increase in equity. Fair value
is measured at grant date and recognised over the period during
which the grantees become unconditionally entitled to the shares or
share options.
The fair value of share grants at grant date is determined by
reference to the share price at that time.
The fair value of share options at grant date is determined
using a Black-Scholes option pricing model that takes into account
the exercise price, the term of the option, any vesting and
performance criteria, the share price at grant date, the expected
price volatility of the underlying share, the expected dividend
yield and the risk free rate for the term of the option.
Upon the exercise of the option, the balance of the share-based
payments reserve relating to the option is transferred to share
capital.
(n) Foreign currency translation
The presentation currency of the consolidated financial
statements is Australian dollars. In addition, functional currency
is determined for each entity in the Group and items included in
the financial statements of each entity are measured using that
functional currency.
Transactions in foreign currencies are initially recorded in the
functional currency by applying the exchange rates ruling at the
date of the transaction. Monetary assets and liabilities
denominated in foreign currencies are retranslated at the rate of
exchange ruling at the balance date.
All exchange differences in the consolidated financial report
are taken to profit or loss with the exception of differences on
foreign currency borrowings that provide a hedge against a net
investment in a foreign entity. These are taken directly to equity
until the disposal of the net investment, at which time they are
recognised in profit or loss.
Tax charges and credits attributable to exchange differences on
those borrowings are also recognised in equity.
Non-monetary items that are measured in terms of historical cost
in a foreign currency are translated using the exchange rate as at
the date of the initial transaction.
Non-monetary items measured at fair value in a foreign currency
are translated using the exchange rates at the date when the fair
value was determined. Translation differences on assets and
liabilities carried at fair value are reported as part of the fair
value gain or loss.
The functional currency of the foreign operation, Scotgold
Resources is Pounds Sterling (GBP). The functional currency of SGZ
France SAS and Scotgold Resources Portugal is the Euro (EUR).
As at the balance date the assets and liabilities of these
subsidiaries are translated into the presentation currency of the
consolidated financial statements at the rate of exchange ruling at
the balance date and income and expense items are translated at the
average exchange rate for the period, unless exchange rates
fluctuated significantly during that period, in which case the
exchange rates at the dates of the transactions are used.
The exchange differences arising on the translation are taken
directly to a separate component of equity, being recognised in the
foreign currency translation reserve.
On disposal of a foreign entity, the deferred cumulative amount
recognised in equity relating to that particular foreign operation
is recognised in profit or loss.
In addition, in relation to the partial disposal of a subsidiary
that does not result in the Group losing control over the
subsidiary, the proportionate share of accumulated exchange
differences are re-attributed to non-controlling interests and are
not recognised in profit or loss. For all other partial disposals
(i.e. partial disposals of associates or jointly controlled
entities that do not result in the Group losing significant
influence or joint control), the proportionate share of the
accumulated exchange differences is reclassified to profit or
loss.
(o) Critical accounting estimates and judgements
The application of accounting policies requires the use of
judgements, estimates and assumptions about carrying values of
assets and liabilities that are not readily apparent from other
sources. The estimates and associated assumptions are based on
historical experience and other factors that are considered to be
relevant. Actual results may differ from these estimates.
Key Estimates - Impairment
The Directors assess impairment at each reporting date by
evaluating conditions specific to the consolidated entity that may
lead to impairment of assets. Where an impairment trigger exists,
the recoverable amount of the asset is determined. Value-in-use
calculations performed in assessing recoverable amounts incorporate
a number of key estimates.
Impairment of mineral exploration and evaluation
AASB 6 Exploration for and Evaluation of Mineral Resources
requires an assessment of recoverable amount to be completed
whenever facts and circumstance suggest that the carrying amount of
an exploration asset may exceed its recoverable amount. Recoverable
amount is defined within AASB 136 Impairment of Assets as the
higher of fair value less costs to sell and value-in-use.
Value-in-use is determined on a pre-tax basis and is the present
value of the future cash flows expected to be derived from the
asset or cash-generating unit.
At 30 June 2016, the Group had capitalised mineral exploration
and evaluation expenditure of $15,639,785 (2015: $14,794,913). The
Directors do not believe and indications of impairment are present.
The Company announced on ASX on 5 August 2015, a Bankable
Feasibility Study on the Cononish Gold and Silver Project which
reported a base case (US$1,100 per ounce) net present value of the
project of GBP23 million.
Classification of exploration and evaluation
The Bulk Processing Trial is designed to demonstrate technical
feasibility and commercial viability, so the criteria to reclassify
any exploration to development have not been met.
NOTE 2 - MINERAL EXPLORATION AND EVALUATION
Opening balance 14,794,913 13,894,769
Bulk processing trial expenditure 90,801 -
Other expenditure during the year 976,175 1,293,340
Expenditure expensed as incurred (131,303) (393,196)
----------- -----------
Closing balance 15,730,586 14,794,913
=========== ===========
The ultimate recoupment of exploration expenditure carried
forward is dependent upon successful development and commercial
exploitation, or sale of the respective areas.
NOTE 3 - INTEREST BEARING LIABILITIES
Convertible Notes
The Company entered into Convertible Note Agreements
(Convertible Notes) on the terms and conditions set out in the
Company's Notice of Meeting dated 23 June 2014 (and approved by
Shareholders at the General Meeting on 30 July 2014). Options to
acquire ordinary shares in the Company and attaching to certain of
the Convertible Notes have all expired and are no longer
available.
During the year on 22 March 2016, $443,400 Convertible Notes
were converted into 73,900,000 ordinary shares of the Company at
the conversion price of $0.006 per share. This partial conversion
reduced the principal amount due under the Convertible Notes by the
same amount.
Subsequent to year end on 2 September 2016 a further $220,000
Convertible Notes were converted into 36,666,667 ordinary shares of
the Company at the conversion price of $0.006 per share.
The remaining outstanding balances of the Convertible Notes
comprise $336,600 with a conversion price of $0.006 per ordinary
share and GBP300,000 ($600,000) with a conversion price of
GBP0.006. The repayment dates are 23 September, and 30 September
2016, respectively.
The balance outstanding at 30 June 2016 is made up as
follows:
First draw Second Total
draw
23 September, 30 March,
2014 2015
$ $ $
Principal sum drawn 1,000,000 600,000 1,600,000
Equity component taken
to reserves (243,121) (113,434) (356,555)
Unwinding of discount 225,785 100,079 325,864
Partial Conversion (443,400) - (443,400)
Interest paid (1,500) - (1,500)
-------------- ---------- ----------
537,764 586,645 1,124,409
============== ========== ==========
NOTE 4 - LOSS PER SHARE
Consolidated
2016 2015
$ $
Earnings used in calculation
of earnings per share (1,596,393) (2,112,965)
============== ============
Number Number
Weighted average number of
ordinary shares outstanding
during the year used in the
calculation of basic loss per
share 1,273,583,261 840,098,450
============== ============
There are no potential ordinary shares on issue at the date of
this report.
NOTE 5 - MATTERS SUBSEQUENT TO THE END OF FINANCIAL YEAR
Other than as set out below there are no other matters or
circumstances that have arisen after the balance date that have
significantly affected, or may significantly affect, the operations
of the consolidated entity, the results of those operations, or the
state of affairs of the consolidated entity in future periods.
On 4 August 2016 the Company announced the placement of
62,500,000 shares to raise funds of GBP500,000 (A$880,000).
On 18 August the Company announced its intention to voluntarily
de-list from ASX.
On 2 September 2016 the Company announced a full conversion of
Convertible Notes into Ordinary Shares at a rate of $0.006 per
share as approved by shareholders at a meeting held on 30 July
2014.
Details of the conversion are:
Noteholder Loan Value Shares Issued
$
Richard Harris 75,000 12,500,000
Golden Matrix Holdings
Pty Ltd 75,000 12,500,000
Alexander Littlejohn 70,000 11,666,667
Nat le Roux has remaining Notes to the value of $336,600 and
GBP300,000 (A$600,000) with repayment / conversion dates of 23
September and 30 September 2016 respectively.
For further information please contact:
Scotgold Resources Limited Stockdale Securities Limited
Richard Gray Robert Finlay / Ed Thomas
Tel: +44 (0)1838 400 306 Tel: +44 (0)20 7601 6100
Capital Markets Consultants Vicarage Capital Limited
Simon Rothschild Rupert Williams
Tel +44 (0)7703 167 065 Tel: +44 (0)20 3651 2911
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR SFWFULFMSESU
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