TIDMSXX
RNS Number : 5036U
Sirius Minerals Plc
30 July 2015
30 July 2015
Sirius Minerals Plc
Financial results for the year ended 31 March 2015
The Directors of Sirius Minerals Plc (AIM: SXX, OTCQX: SRUXY)
("Sirius" or the "Company") announce the results for Sirius and its
subsidiaries ("the Group") for the year ended 31 March 2015.
Key highlights
-- Take-or-pay offtake agreement with large Central American
fertilizer distributor for 250,000 tonnes per annum of polyhalite,
ramping up over five years.
-- Take-or-pay offtake agreement with a leading South American
fertilizer distributor for 300,000 tonnes per annum over seven
years.
-- 500,000 tonnes per annum of polyhalite under one memorandum of understanding.
-- 396,000 tonnes per annum of polyhalite under letters of intent.
-- Memorandum of Understanding signed with Tanzanian Ministry of
Agriculture in Tanzania, supporting collaboration on research on
polyhalite for the introduction of polyhalite into Tanzania.
-- Verification that polyhalite has nutritional benefits for
animals and maiden animal feed take-or-pay offtake agreement for a
long term supply of 50,000 tonnes per annum of polyhalite.
-- Range of positive crop study results demonstrating the value
of polyhalite on crops of commercial significance through field
trials across the globe announced in agronomy updates and
webcasts.
-- Appointment of new Group Chief Financial Officer, Thomas Staley.
-- Oversubscribed share placing raising GBP15 million.
-- Community engagement showed high levels of public support
with 98% of people in favour of the York Potash Project ("the
Project").
-- Planning approval submissions made for the York Potash Project.
Post balance sheet events
-- Successful resolutions to grant planning permissions for key
approvals required to develop the Project, including the mine and
mineral transport system, the materials handling facility and the
temporary construction park and ride facility.
-- The proposed development consent order for Harbour Facilities
at Teesside has been accepted for examination by the Planning
Inspectorate. A final decision is due to be made by the Secretary
of State for Transport no later than summer 2016.
-- Noel Harwerth and Jane Lodge appointed to the Board as
independent non-executive directors with Chris Catlow and Peter
Woods stepping down.
Financials
The Group's year-end cash and cash equivalents position as at 31
March 2015 was GBP26.6 million (2014: GBP48.4 million). The Group's
loss for the year ended 31 March 2015 was GBP10.0 million (2014:
GBP8.0 million).
Annual Report and Accounts
The Annual Report and Accounts have now been published on the
Company's website: www.siriusminerals.com. The Annual Report and
Accounts will also be posted to shareholders shortly.
For further information, please contact:
Sirius Minerals Plc
Investor Relations Email: ir@siriusminerals.com Tel: +44 845
524 0247
--------------------------- ------------------------------- ---------------
Joint Brokers
Liberum Capital Limited Clayton Bush Tel: +44 20
3100 2222
Macquarie Capital (Europe) Ken Fleming, Tel: +44 20
Limited (NOMAD) Nick Harland, 3037 2000
Nick Stamp
WH Ireland Adrian Hadden Tel: +44 20
7220 1666
--------------------------- ------------------------------- ---------------
Media Enquiries Jos Simson, Mike Tel: +44 20
Tavistock Bartlett, 7920 3150
Emily Fenton
--------------------------- ------------------------------- ---------------
Warrant Trading Enquiries
Liberum Capital Limited Simon Smith Tel: +44 20
3100 2171
--------------------------- ------------------------------- ---------------
About Sirius Minerals Plc
Sirius Minerals is the fertilizer development company focused on
the development of the York Potash Project in the United Kingdom,
which has the world's largest and highest grade deposit of
polyhalite, a multi-nutrient form of potash containing potassium,
sulphur, magnesium and calcium. Incorporated in 2003, Sirius
Minerals' shares are traded on the London Stock Exchange's AIM
market. Its shares are also traded in the United States on the
OTCQX through a sponsored ADR facility. Further information on the
Company can be found at: www.siriusminerals.com.
CHAIRMAN'S STATEMENT
Dear Shareholders
This is my fourth year of submitting a Chairman's statement to
you and I believe this year we can look forward with ever more
confidence to the long-term success of the Group.
It has been a year dominated by three key work streams: planning
approvals, the ongoing preparation of our definitive feasibility
study (DFS) and the continued progress of our sales and marketing
efforts.
Last year I said that 2014-2015 would be a defining period for
the Group, but it is only a step on our way to fulfilling the
Group's true potential. And so it has turned out to be, with the
year dominated by our focus on achieving planning consent for the
key parts of the York Potash Project (the Project). Although final
positive planning decisions came outside of the 2014-2015 financial
year, it would be remiss not to reference these successes as part
of this report.
It is often difficult to properly explain to external observers
the level of work and effort that goes into preparing planning
applications, especially the nature of the applications that have
been required for this Project. Although most public focus has been
on the North York Moors National Park Authority (NYMNPA), there
have been six applications submitted for the critical
infrastructure that supports the Project's construction and
operational requirements. The number of studies, reviews, drafts,
comments, consultations and documents has been quite
staggering.
At times during the financial year people will have been
frustrated by apparent delays, as examples, when we chose to change
the Project's design to incorporate a tunnel-based mineral
transport system (MTS) and then to merge the mine and MTS
applications, resulting in the submission of the former being
delayed to align with the latter. But as a project of this scale
and nature evolves, you have to adapt the strategy, and those
decisions have turned out to have been the right ones.
Similarly in projects of this size, and where there is a desire
to submit the applications as quickly as possible, there are
inevitably corrections and clarifications to provide along the way,
as well as additional information. Our in-house and consultancy
teams led by Allan Gamble did a fantastic job to compile such a
comprehensive and timely set of documents in the package of
supplementary environmental information in February 2015, which
ultimately set us on the final path towards approval.
Our first key planning approval came from Scarborough Borough
Council (SBC) for the construction park and ride and workers
accommodation. Progress was subsequently made with the mine and MTS
application and then the materials handling facility application at
Redcar and Cleveland Borough Council (RCBC). This was followed by
the positive consideration of the mine and mineral transport system
planning application by the NYMNPA. I would like thank all the
local authorities for their hard work in determining the
applications. We do believe that the long-term economic benefits of
the Project will be substantial for the local area, region and
nation as a whole. We look forward to continuing to delivering both
these benefits and our commitment to the York Potash Foundation
(YPF) that can provide a positive lasting legacy to the area.
The development consent order for the harbour facilities has
been submitted and in April 2015 it was accepted for future
examination. We anticipate a decision will be made by the Planning
Inspectorate in summer 2016.
Another large component of the Company's work in 2014-2015 has
been behind the scenes with the ongoing preparation of the DFS.
Whilst large amounts of it have been concluded, the overall
finalisation of the DFS awaited the receipt of key project
approvals and the completion of the key tenders that were being run
throughout the year.
The past year was also notable for the ongoing progress in sales
and marketing. This has ranged from the advancement of sales
commitments to the further development and growth of the global
agronomy programme. To have secured an increasing number of
take-or-pay contracts in an industry where traditionally long-term
contracts are not the norm, is testament to our progress.
Sirius Minerals's trademarked polyhalite product, POLY4, has
natural nutrient advantages offering better agronomical and
economic benefits over a range of other fertilizer products. We
believe the unique characteristics of POLY4, combined with the
healthy cash margins expected from the Project, differentiate
Sirius Minerals from other companies in the fertilizer
industry.
From a management team perspective we have now established an
effective group that are pushing the Company forward to achieve its
goals. I see on a daily basis the hard work that, from the top to
the most junior level of our team, is going into making the Company
a success for the benefit of all our shareholders. Of particular
note in December 2014 was the promotion of Thomas Staley to the
Chief Financial Officer role. His energy and experience is proving
to be a great asset to the Company.
Since the year end we have seen the departure of two
long-standing non-executive directors, Deputy Chairman Chris Catlow
and Peter Woods. I wish them both well in their future endeavours.
We have added to the Board two very experienced independent
non-executive directors, Noel Harwerth and Jane Lodge. Both ladies
bring an impressive breadth of corporate executive and board
experience to our company, and their collective finance, mining,
construction and accounting backgrounds will be very useful to
Sirius Minerals throughout our next phase of development.
The financial year saw the Group deliver an important financing
in February 2015, when we raised GBP15 million from an
oversubscribed equity placement. Financing is never undertaken
lightly, and there is always a balance between minimising dilution
of existing shareholders and maintaining the Project's momentum. In
this instance it was prudent to execute the transaction so we could
maintain time-critical engineering work and have comfort that we
were funded beyond the planning decision if we were driven into an
appeal period.
Our financing ability and corporate strategy is fundamentally
different following the grant of the key-approvals. We expect to
provide further detail to shareholders throughout the 2015-2016
financial year. To gain an understanding of our future plans,
people should realise that our target is, very definitely, to bring
a world-class fertilizer company into production. This means that
any financings before reaching that first production target are
important and are stepping stones to deliver a lower operating cost
structure appropriate for profitable operations to unlock
shareholder value and returns. We will take such decisions with the
best interests of all shareholders in mind.
The financial year ahead will be an exciting period as we look
to secure appropriate funding to begin construction and ultimately
reach our goal of becoming a large-scale, multi-nutrient fertilizer
producer. That has always been at the heart of our strategy - to
maximise long-term shareholder value.
I thank you for your loyal support and hope that it continues
into the year ahead and beyond.
Kind regards,
Russell Scrimshaw
Chairman
CONSOLIDATED INCOME STATEMENT
for the year ended 31 March 2015
2015 2014
GBP000s GBP000s
---------------------------- -------- --------
Revenue - -
Administrative expenses (10,047) (9,115)
---------------------------- -------- --------
Operating loss (10,047) (9,115)
Finance income 332 49
Finance costs (353) (1,063)
---------------------------- -------- --------
Loss before taxation (10,068) (10,129)
Taxation 503 2,151
---------------------------- -------- --------
Loss for the financial year (9,565) (7,978)
---------------------------- -------- --------
Loss per share:
Basic and diluted (0.5)p (0.5)p
---------------------------- -------- --------
CONSOLIDATED STATEMENT OF
COMPREHENSIVE INCOME
for the year ended 31 March 2015
2015 2014
GBP000s GBP000s
----------------------------------------------------------------- ------- -------
Loss for the financial year attributable to owners of the parent (9,565) (7,978)
----------------------------------------------------------------- ------- -------
Other comprehensive income/(loss)
Items that may be subsequently reclassified to profit or loss
Exchange differences on translating foreign operations (346) 210
----------------------------------------------------------------- ------- -------
Other comprehensive income/(loss) for the year (346) 210
----------------------------------------------------------------- ------- -------
Total comprehensive loss for the year (9,911) (7,768)
----------------------------------------------------------------- ------- -------
Total comprehensive loss shown above is fully attributable to equity shareholders of the parent
in both years.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
as at 31 March 2015
2015 2014
ASSETS GBP000s GBP000s
------------------------------ -------- --------
Non-current assets
Property, plant and equipment 1,932 2,116
Intangible assets 121,721 92,814
------------------------------ -------- --------
Total non-current assets 123,653 94,930
------------------------------ -------- --------
Current assets
Other receivables 1,413 1,046
Cash and cash equivalents 26,640 48,404
Total current assets 28,053 49,450
------------------------------ -------- --------
TOTAL ASSETS 151,706 144,380
------------------------------ -------- --------
EQUITY AND LIABILITIES
Equity
Share capital 5,362 4,658
Share premium account 216,586 197,797
Share based payment reserve 13,290 11,404
Accumulated losses (95,630) (86,360)
Foreign exchange reserve 7,028 7,374
------------------------------ -------- --------
Total equity 146,636 134,873
------------------------------ -------- --------
Current liabilities
Loan from third parties 1,980 5,340
Trade and other payables 3,090 4,167
------------------------------ -------- --------
Total liabilities 5,070 9,507
------------------------------ -------- --------
TOTAL EQUITY AND LIABILITIES 151,706 144,380
------------------------------ -------- --------
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the year ended 31 March 2015
Share Equity
Share based Foreign share-
Share premium payments Accumulated exchange holders'
capital account reserve losses reserve funds
GBP000s GBP000s GBP000s GBP000s GBP000s GBP000s
----------------------------------------------- ------- ------- -------- ----------- -------- --------
At 31 March 2013 3,359 147,763 10,345 (79,392) 7,164 89,239
Loss for the financial year - - - (7,978) - (7,978)
Foreign exchange differences on
translation of foreign operations - - - - 210 210
----------------------------------------------- ------- ------- -------- ----------- -------- --------
Total comprehensive loss for the year - - - (7,978) 210 (7,768)
Convertible loan 368 9,562 - 1,010 - 10,940
Share issue 897 42,147 897 - - 43,941
Share issue costs - (2,180) - - - (2,180)
Share based payments 27 - 162 - - 189
Exercised options 7 505 - - - 512
At 31 March 2014 4,658 197,797 11,404 (86,360) 7,374 134,873
Loss for the financial year - - - (9,565) - (9,565)
Foreign exchange differences on
translation of foreign operations - - - - (346) (346)
----------------------------------------------- ------- ------- -------- ----------- -------- --------
Total comprehensive (loss)/income for the year - - - (9,565) (346) (9,911)
Convertible loan 113 3,287 - 295 - 3,695
Share Issue 572 15,853 - - - 16,425
Share Issue costs - (665) - - - (665)
Share based payments - - 1,886 - - 1,886
Exercised options 19 314 - - - 333
At 31 March 2015 5,362 216,586 13,290 (95,630) 7,028 146,636
----------------------------------------------- ------- ------- -------- ----------- -------- --------
The share premium account is used to record the excess proceeds over nominal value on
the
issue of shares.
The share based payment reserve is used to record the share based payments made by the
Group.
Foreign exchange reserve records exchanges differences which arise on translation of
foreign
operations with a functional currency other than Sterling.
CONSOLIDATED STATEMENT OF CASH FLOWS
for the year ended 31 March 2015
2015 2014
GBP000s GBP000s
----------------------------------------------------- -------- --------
Cash outflow from operating activities (10,240) (7,950)
----------------------------------------------------- -------- --------
Cash flow from investing activities
Purchase of intangible assets (27,188) (17,424)
Purchase of plant and equipment (62) (1,461)
Repayment of loan to third party - 915
Net cash used in investing activities (27,250) (17,970)
----------------------------------------------------- -------- --------
Cash flow from financing activities
Proceeds from loan - 15,748
Proceeds from issue of shares 16,758 43,557
Share issue costs (665) (2,180)
Finance (costs)/income (21) (1,014)
Net cash generated from financing activities 16,072 56,111
----------------------------------------------------- -------- --------
Net increase/(decrease) in cash and cash equivalents (21,418) 30,191
Cash and cash equivalents at beginning of the year 48,404 17,980
Effect of foreign exchange rate changes (346) 233
----------------------------------------------------- -------- --------
Cash and cash equivalents at end of the year 26,640 48,404
----------------------------------------------------- -------- --------
NOTES TO THE FINANCIAL STATEMENTS
1. ACCOUNTING POLICIES
--------------------------------------------------------------------------------------------------
BASIS OF PREPARATION
The annual financial statements of Sirius Minerals Plc ("the Company") and its subsidiaries
("the Group") have been prepared in accordance with International Financial Reporting Standards
("IFRS") and IFRS IC Interpretations as adopted by the European Union ("EU") and the Companies
Act 2006 applicable to companies reporting under IFRS.
IFRS is subject to amendment and interpretation by the International Accounting Standards
Board ("IASB") and the International Financial Reporting Standards Interpretations Committee
("IFRS IC") and there is an ongoing process of review and endorsement by the European Commission.
The financial statements have been prepared on the basis of the recognition and measurement
principles of IFRS that were applicable at 31 March 2015.
The preparation of financial statements in conformity with IFRS requires the use of certain
critical accounting estimates. It also requires management to exercise its judgement in the
process of applying the company's accounting policies. The areas involving a higher degree
of judgement or complexity, or areas where assumptions and estimates are significant to the
financial statements, are disclosed in note 2.
The financial statements have been prepared under the historical cost convention. The principal
accounting policies set out below have been consistently applied to all periods presented.
The Company is a public limited company which is incorporated and domiciled in the UK. The
address of its registered office is: 3rd Floor Greener House, 68 Haymarket, London SW1Y 4RF.
GOING CONCERN
The Group incurred a loss for the year after taxation of GBP9,565,000 and as at 31 March 2015,
its assets exceeded its liabilities by GBP146,636,000. Whilst the Directors remain confident
of a positive outcome in each of the following areas they recognise that there are a number
of material uncertainties inherent in the York Potash project, namely;
--The conclusion of the feasibility studies to prove the availability and economic viability
of polyhalite resources
-- Securing sufficient financing to fund full operational development
An unsuccessful outcome in respect of these material uncertainties may cast significant doubt
on the Group's ability to continue as a going concern. However the Directors remain positive
following recent planning decisions covering the Project's mine and mineral transport system,
and the Group's ability to raise finance in the future. The Directors are of the view that
additional funding will be secured as necessary. In March 2015, the Group secured a further
GBP15m through a placement of shares.
The Group retains the ability to defer certain expenditure and operate within the level of
its existing funds for a period which the Directors believe to be sufficient to enable them
to secure funding. On this basis the Directors have concluded that the Group retains sufficient
resources to meet its obligations as they fall due for a period of at least 12 months from
the date of approval of these financial statements. The financial statements do not include
the adjustments which would result if the Group were unable to continue as a going concern.
2. SEGMENTAL ANALYSIS
--------------------------------------------------------------------------------------------------
Management has determined the operating segments by considering the business from both a geographic
and activity perspective. The Group is currently organised into two business divisions: the
UK segment which consists of the York Potash related activities and the corporate operations
and the Rest of World which includes the parent company's other overseas interests. These
divisions are the segments for which the Group reports information internally to the Board
of Directors. The Group's operations are predominantly in the United Kingdom.
UK Rest of the World
---------------------------------
Resource evaluation
and exploration and
Corporate operations and Resource Environmental
Evaluation and exploration solutions
Total
GBP000s GBP000s GBP000s
----------------------------------------------- --------------------------------- -------------------- --------
Year ended 31 March 2015
Operating (loss)/profit (10,207) 160 (10,047)
Finance costs (353) - (353)
Finance income 328 4 332
----------------------------------------------- --------------------------------- -------------------- --------
(Loss)/profit before taxation (10,231) 163 (10,068)
Tax credits 503 - 503
----------------------------------------------- --------------------------------- -------------------- --------
(Loss)/profit for the year from continuing
operations (9,728) 163 (9,565)
----------------------------------------------- --------------------------------- -------------------- --------
Total assets 151,340 366 151,706
Total liabilities (4,900) (170) (5,070)
----------------------------------------------- --------------------------------- -------------------- --------
Net assets 146,440 196 146,636
----------------------------------------------- --------------------------------- -------------------- --------
Capital expenditure 28,990 - 28,990
Depreciation and amortization 203 - 203
Share based payment cost 2,493 - 2,493
----------------------------------------------- --------------------------------- -------------------- --------
UK Rest of the World
---------------------------------
Resource evaluation
and exploration and
Corporate operations and Resource Environmental
Evaluation and exploration solutions
Total
GBP000s GBP000s GBP000s
----------------------------------------------- --------------------------------- -------------------- --------
Year ended 31 March 2014
Operating (loss)/profit (8,948) (167) (9,115)
Finance costs (1,063) - (1,063)
Finance income 43 6 49
----------------------------------------------- --------------------------------- -------------------- --------
(Loss)/profit before taxation (9,968) (161) (10,129)
Tax credits 2,151 - 2,151
----------------------------------------------- --------------------------------- -------------------- --------
(Loss)/profit for the year from continuing
operations (7,817) (162) (7,978)
----------------------------------------------- --------------------------------- -------------------- --------
Total assets 143,819 561 144,380
Total liabilities (9,326) (181) (9,507)
----------------------------------------------- --------------------------------- -------------------- --------
Net assets 134,493 380 134,873
----------------------------------------------- --------------------------------- -------------------- --------
Capital expenditure 20,508 - 20,508
Depreciation and amortisation 216 8 224
Share based payment cost 564 - 564
----------------------------------------------- --------------------------------- -------------------- --------
3. SUMMARY OF ADMINISTRATIVE EXPENSES
-------------------------------------
The Company made impairment charges in respect of its loans receivable from Auspotash Corporation
and Sirius Minerals (Australia) Pty Limited (see notes 13 and 15). The total expense recognised
within the income statement in relation to impairment charges is GBP2,898 (2014: GBP23,174).
4. LOSS PER SHARE
--------------------------------------------------------------------------------------------------
Basic loss per share is calculated by dividing the earnings attributable to ordinary
shareholders
by the weighted average number of ordinary shares outstanding during the year.
Given the Group's reported loss for the year, share options are not taken into account
when
determining the weighted average number of ordinary shares in issue during the year and
therefore
the basic and diluted earnings per share are the same.
2015 2014
GBP000s GBP000s
---------------------------------------------------------------------- ------- -------
Loss for the purposes of basic earnings per share being net loss
attributable to equity shareholders
of the parent (9,565) (7,978)
---------------------------------------------------------------------- ------- -------
Loss for the purpose of diluted earnings per share (9,565) (7,978)
---------------------------------------------------------------------- ------- -------
2015 2014
Number Number
000s 000s
------------------------------------------------------------------ --------- ---------
Number of shares
Weighted average number of ordinary shares for the purpose of
basic and diluted earnings per
share 1,901,126 1,435,723
------------------------------------------------------------------ --------- ---------
If the Company's share options were taken into consideration in respect of the Company's
weighted
average number of ordinary shares for the purpose of diluted earnings per share, it
would
be as follows:
2015 2014
Number Number
000s 000s
------------------------------------------------------------------ --------- ---------
Number of shares
Weighted average number of ordinary shares for the purposes of
diluted earnings per share 1,960,057 1,503,154
------------------------------------------------------------------ --------- ---------
Basic and diluted loss per share (0.5)p (0.5)p
------------------------------------------------------------------ --------- ---------
Basic loss per share is calculated by dividing the earnings attributable to ordinary shareholders
by the weighted average number of ordinary shares outstanding during the year.
Given the Group's reported loss for the year, share options are not taken into account when
determining the weighted average number of ordinary shares in issue during the year, therefore
basic and diluted earnings per share are the same.
5. INTANGIBLE ASSETS
--------------------------------------------------------------------------------------------------
Exploration
and Evaluation Assets Goodwill Software Total
Group GBP000s GBP000s GBP000s GBP000s
-------------------------------------------------------- --------------------- -------- -------- --------
Cost
At 1 April 2013 125,386 9,079 79 134,544
Additions 19,097 - - 19,097
Foreign exchange movement - - - -
At 31 March 2014 144,483 9,079 79 153,641
Additions 28,929 - - 28,929
Foreign exchange movement - - - -
As at 31 March 2015 173,412 9,079 79 182,570
-------------------------------------------------------- --------------------- -------- -------- --------
Accumulated provision for permanent diminution in value
At 1 April 2013 (58,339) (2,436) (26) (60,801)
Impairment - - - -
Amortisation - - (26) (26)
At 31 March 2014 (58,339) (2,436) (52) (60,827)
Amortisation - - (22) (22)
-------------------------------------------------------- --------------------- -------- -------- --------
At 31 March 2015 (58,339) (2,436) (74) (60,849)
-------------------------------------------------------- --------------------- -------- -------- --------
Net book value
31 March 2015 115,073 6,643 5 121,721
-------------------------------------------------------- --------------------- -------- -------- --------
31 March 2014 86,144 6,643 27 92,814
-------------------------------------------------------- --------------------- -------- -------- --------
GOODWILL
The goodwill acquired in January 2011 as part of the business combination relating to York
Potash Ltd has been allocated to the cash generating unit (CGU) of resource evaluation and
exploitation in the geographical location of the UK, which is expected to benefit from the
business combination.
The recoverable amount of the goodwill on the acquisition of York Potash Ltd has been assessed
by reference to value in use. The valuation is based on cash flow projections that incorporate
best estimates of selling prices, production rates, future capital expenditure and production
costs. A growth rate of 2 per cent was incorporated into the discount rate.
The cash flow projections are based on long term plans covering the expected life of the operation.
The Indicated Resource of 820 million tonnes of polyhalite determines an expected mine life
of more than 25 years. The valuations are particularly sensitive to changes in assumptions
about selling prices, volumes of production and operating costs. Long term average selling
prices are forecast taking account of market data in respect of potash and management's current
expectations. Forecasts of volumes of production and operating costs are based on management's
current expectations.
Discount rates represent an estimate of the rate the market would apply having regard to the
time value of money and the risks specific to the asset for which the future cash flow estimates
have not been adjusted. A discount rate of 10 per cent, which is considered to be appropriate
for a project of this nature and size, has been applied to the pre-tax cash flows.
No reasonably possible change in the key assumptions on which York Potash Ltd's recoverable
amount is based would cause its value to fall short of its carrying amount as at 31 March
2015.
IMPAIRMENT
There were no impairment charges in the year. Last year there were impairment charges of GBP4,000.
6. CASH OUTFLOW FROM OPERATING ACTIVITIES
-----------------------------------------------------------------------------------------------------
2015 2014
Group GBP000s GBP000s
------------------------------------------------------ -------- --------
Loss before tax (10,068) (10,129)
Depreciation 182 198
Assets expensed to income statement 64 50
Finance (income)/expense 21 1,014
Amortisation 22 26
Impairment - -
Share based payments 1,886 1,086
Loan conversion into shares 333 531
Tax credit 503 1,492
Operating cash flow before changes in working capital (7,057) (5,732)
Decrease/(increase) in receivables (367) (88)
(Decrease)/increase in payables (2,816) (2,130)
------------------------------------------------------ -------- --------
Net cash outflow from operating activities (10,240) (7,950)
------------------------------------------------------ -------- --------
7. SHARE CAPITAL
2015 2014
GBP000s GBP000s
------------------------------------------------------------------ ------- -------
Allotted and called up
2,145,020,261 (2014: 1,863,331,072) ordinary shares of 0.25p each 5,362 4,658
------------------------------------------------------------------ ------- -------
On 9 April 2014 the Company issued 1,198,095 new ordinary shares of 0.25p each to Company
employees under the Company's long term incentive plan.
On 2 June 2014 the Company issued 900,000 new ordinary shares of 0.25p each to Jason Murray,
Executive Director pursuant to share awards under his contract of employment which had vested.
On 4 August 2014 the company cancelled 25,000 new ordinary shares of 0.25p each
On 20 August 2014 the Company issued 1,044,445 new ordinary shares of 0.25p each to Jason
Murray, Executive Director upon leaving the company pursuant to share awards which had vested.
On 20 August 2014 the Company issued 250,000 new ordinary shares of 0.25p each at a price
of 4.5p per share, realising GBP10,625, following the exercise of share options.
On 12 September 2014 the Company issued 500,000 new ordinary shares of 0.25p each at a price
of 4.5p per share, realising GBP21,250, following the exercise of share options.
On 24 March 2015 the Company issued 6,200,000 new ordinary shares of 0.25p each at a price
of 4.5p per share, realising GBP263,500, following the exercise of share options.
On 23 March 2015 the Company issued 500,000 new ordinary shares of 0.25p each at a price of
4p per share, realising GBP18,750, following the exercise of share options.
Throughout the year, pursuant to notices served by the Company's investor under the convertible
securities facility entered into on 11 August 2013 the Company issued the following new ordinary
shares of 0.25p each: Number of Weighted
Issue Price shares Average Price
------------- ----------- --------------
At 5 -
8 pence 16,085,268 6.5p
------------- ----------- --------------
8 - 10
pence 28,611,849 9.3p
------------- ----------- --------------
10 - 12
pence 446,429 11.1p
------------- ----------- --------------
Total 45,143,546 8.3p
------------- ----------- --------------
On 9 March 2015 the Company issued 225,978,103 new ordinary shares of 0.25p each to various
parties in connection with a placing at a price of 7p per ordinary share.
8. FINANCIAL INFORMATION
-------------------------------------------------------------------------------------------------
The financial information set out in this announcement does not
comprise the Group's statutory accounts for the years ended 31
March 2015 or 31 March 2014.
The comparative financial information has been extracted from
the statutory accounts of the Group for the year ended 31 March
2014. The auditors reported on those accounts; their report was
unqualified and did not contain a statement under either Section
498 (2) or Section 498 (3) of the Companies Act 2006 and but did
include references to material uncertainties surrounding the
Directors application of the Going Concern assumption. The
statutory accounts for the year ended 31 March 2014 have been
delivered to the Registrar of Companies.
The statutory accounts for the year ended 31 March 2015 have
been finalised on the basis of the financial information presented
by the Directors in this preliminary announcement and will be
delivered to the Registrar of Companies following the Company's
Annual General Meeting.
ENDS
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR EAEXNADDSEAF
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