TIDMTYM

RNS Number : 3274Z

Tertiary Minerals PLC

26 May 2016

26 May 2016

TERTIARY MINERALS PLC

(the "Company")

HALF-YEARLY REPORT 2016

Tertiary Minerals plc, the AIM-traded company building a strategic position in the fluorspar sector, announces its unaudited interim results for the six months ended 31 March 2016.

Operational Highlights

MB Fluorspar Project, Nevada, USA:

   --      Phase 4 drilling programme completed - 4 holes for a total of 1,553 metres drilled 

-- Thick intersections of fluorspar mineralisation encountered in step-out drilling - remains open at depth and along strike

   --      Hole 15TMBRC036 located west of the Western Area: 

o 89.91m grading 12.02% CaF(2) from 120.40m depth (total of 8 significant fluorspar intersections), including 31.99m grading 16.74% CaF(2) from 150.88m (total of 6 higher grade intersections above 15% CaF(2) )

   --      Hole 15TMBRC038 located to the north of the Western Area: 

o 22.86m grading 11.47% CaF(2) from 74.68m depth

   --      Hole 15TMBRC039 located to the north of the Western Area: 

o 137.16m grading 11.54% CaF(2) from 53.34m depth (total of 16 significant fluorspar intersections), including 32.00m grading 15.81% CaF(2) from 185.93m (total of 5 higher grade intersections above 15% CaF(2) )

-- Ore-grade molybdenum (Mo) encountered in the base of hole 15TMBRC036 provides future exploration target

Storuman Fluorspar Project, Sweden:

   --      Exploitation (Mining) Permit approved by the Swedish Mining Inspectorate 
   --      The Exploitation Permit is valid for 25 years from 18 February 2016 
   --      Two appeals have been lodged against the Exploitation (Mine) Permit: 

o Sami Reindeer Husbandry Community

o Urbergsgruppen, a Swedish environmental action group who oppose all mining activities throughout Sweden

   --      The appeals will be decided by the Swedish Government 

Financial Results - Summary:

-- Operating Loss for the six month period of GBP219,962 (six months to 31 March 2015: GBP223,050) comprises:

o Revenue of GBP84,568; less

o Administration costs of GBP297,169 (which includes non-cash share based payments of GBP17,188), and

o Pre-licence and reconnaissance exploration costs totalling GBP7,361

   --      Total Group Loss of GBP300,136 is after charging: 

o Impairment of available for sale investment of GBP81,142

o Interest income of GBP968

   --      28,986,059 Ordinary Shares were issued during the reporting period as follows: 

o Placing of 28,888,889 shares at 2.25p per share on 6 October 2015 to raise GBP650,000 before expenses

o Issue of 97,170 shares to a non-executive director in lieu of fees at a price of 1.4p per share

 
 Enquiries 
  Tertiary Minerals plc 
  Patrick Cheetham, Executive 
  Chairman 
  Richard Clemmey, Managing 
  Director                         +44 (0)1625 838 679 
 SP Angel Corporate Finance 
  LLP 
  Nominated Adviser & Joint 
  Broker 
  Ewan Leggat / Tercel 
  Moore                            +44 (0) 20 3470 0470 
 Beaufort Securities Ltd 
  Joint Broker 
  Elliot Hance                   +44 (0)20 7382 8300 
 

Chairman's Statement

I am pleased to present our Interim Report for the six month period ended 31 March 2016.

A major milestone was reached in this reporting period when, in February this year, the Swedish Mining Inspectorate granted the Exploitation (Mine) Concession for our advanced Storuman Fluorspar Deposit. The Exploitation Concession secures our rights to the Storuman deposit for the next 25 years and was granted after consideration of numerous stakeholder submissions. All but one of these submissions were supportive of the project. Unfortunately, and despite the Mining Inspectorate having stated that reindeer herding and mining activity can sensibly coexist in the concession area, the local Sami Reindeer Husbandry Community has appealed the Mining Inspectorate's decision to the Government alongside Urbergsgruppen, a Swedish environmental action group which opposes all mining activities in Sweden. Because of the overwhelming local stakeholder support, the potential economic benefits and the 'National Interest' status given to the project by the Government, we expect the appeals to be rejected but it is nevertheless frustrating that the time frame in which the Swedish government must deal with the appeals is not fixed.

In Nevada, our MB Fluorspar Project continues to deliver outstanding results with the completion of a further phase of drilling (Phase 4). This has further expanded the known area of mineralisation and suggests that the already large Mineral Resource Estimate - some 86 million tonnes grading 10.7% fluorspar (CaF(2) ) - can be significantly increased. Notable thick intersections of fluorspar mineralisation were announced as extensions of the Western Area of the deposit - for example an aggregate 89.91m grading 12.02% CaF(2) from 120.40m depth in hole 15TMBRC036. Intriguingly, potential ore-grade molybdenum values were encountered at the base of the same hole indicating a future exploration target. The Company is now moving on to development studies for the MB Project to include metallurgical testing, economic modelling and scoping studies as well as mine permit planning.

We continue to maintain our interest in the Lassedalen Fluorspar Project in Norway where we have previously defined a modest higher-grade deposit of fluorspar. The project has good potential for future development if projected extensions to the known deposit can be confirmed. A programme of geophysics has recently been undertaken by the Norwegian Geological Survey on the western extensions with results expected to assist the placing of future drill holes.

Fluorspar markets and prices have continued to be negatively affected by slow demand during this reporting period. We consider that current low prices are not sustainable in the medium-term and in the past few years we have seen material taken off the market through mine closures and this should lead to improved prices. Indeed, increased demand and prices for acid-grade fluorspar in China have recently been reported.

Outside of fluorspar, we continue to hold two legacy gold projects and one tantalum project in Finland and have recently received third party expressions of interest which we are currently negotiating.

The cyclical mining share markets appear to have bottomed in the reporting period and we are now seeing a strengthening of some commodity prices and the share prices of many mining companies. This is being led by the gold sector but, based on historical patterns, we expect this to flow on more widely to the rest of the mining sector. We have continued to increase our interest in Sunrise Resources plc through the capitalisation of shared management costs and the Company's interest in Sunrise now stands at 11.8%.

I would like to thank shareholders for their patient support in these difficult markets. My personal view is that the worst may be behind us and we look forward to reporting on progress at our fluorspar projects as we advance these towards production.

Patrick L Cheetham

Executive Chairman

26 May 2016

Consolidated Income Statement

for the six months to 31 March 2016

 
 
                                      Six months   Six months       Twelve 
                                           to 31        to 31       months 
                                           March        March        to 30 
                                            2016         2015    September 
                                       Unaudited    Unaudited         2015 
                                                                   Audited 
                                             GBP          GBP          GBP 
-----------------------------------  -----------  -----------  ----------- 
 
 Revenue                                  84,568       85,937      181,598 
-----------------------------------  -----------  -----------  ----------- 
 
 Administration costs                  (297,169)    (295,167)    (569,515) 
 
 Pre-licence and other exploration 
  costs                                  (7,361)      (1,640)     (23,869) 
 
 Impairment of deferred 
  exploration costs                            -     (12,180)      (4,522) 
 
 
 Operating loss                        (219,962)    (223,050)    (416,308) 
 
 Impairment of available 
  for sale investment                   (81,142)            -    (260,997) 
 
 Interest receivable                         968        1,474        2,314 
 
 
 Loss before income tax                (300,136)    (221,576)    (674,991) 
 
 Income tax                                    -            -            - 
-----------------------------------  -----------  -----------  ----------- 
 
 Loss for the period attributable 
  to equity holders of the 
  parent                               (300,136)    (221,576)    (674,991) 
===================================  ===========  ===========  =========== 
 
 Loss per share - basic 
  and diluted (pence) (note 
  2)                                      (0.14)       (0.13)       (0.37) 
===================================  ===========  ===========  =========== 
 

Consolidated Statement of Comprehensive Income

for the six months to 31 March 2016

 
                                       Six months   Six months          Twelve 
                                               to           to          months 
                                         31 March     31 March              to 
                                             2016         2015    30 September 
                                        Unaudited    Unaudited            2015 
                                                                       Audited 
                                              GBP          GBP             GBP 
------------------------------------  -----------  -----------  -------------- 
 
  Loss for the period                   (300,136)    (221,576)       (674,991) 
------------------------------------  -----------  -----------  -------------- 
  Other comprehensive income 
  Items that could be reclassified 
   subsequently to the Income 
   Statement: 
  Foreign exchange translation 
   differences on foreign 
   currency net investments 
   in subsidiaries                        217,075     (39,406)        (59,439) 
------------------------------------  -----------  -----------  -------------- 
                                          217,075     (39,406)        (59,439) 
------------------------------------  -----------  -----------  -------------- 
  Items that have been reclassified 
   subsequently to the Income 
   Statement: 
  Fair value movement on 
   available for sale investment                -    (112,702)       (112,702) 
  Transfer from available 
   for sale investment reserve 
   on impairment of available 
   for sale investment                          -        -             260,997 
------------------------------------  -----------  -----------  -------------- 
                                                -    (112,702)         148,295 
------------------------------------  -----------  -----------  -------------- 
  Total comprehensive loss 
   for the period attributable 
   to equity holders of the 
   parent                                (83,061)    (373,684)       (586,135) 
====================================  ===========  ===========  ============== 
 

Company Registration Number 03821411

Consolidated Statement of Financial Position

at 31 March 2016

 
 
                                        As at         As at           As at 
                                     31 March      31 March    30 September 
                                         2016          2015            2015 
                                    Unaudited     Unaudited         Audited 
                                          GBP           GBP             GBP 
-------------------------------  ------------  ------------  -------------- 
 Non-current assets 
 Intangible assets                  4,038,021     3,370,694       3,536,609 
 Property, plant & equipment           13,147         7,584           7,296 
 Available for sale investment        153,353       148,222         148,222 
-------------------------------  ------------  ------------  -------------- 
 
                                    4,204,521     3,526,500       3,692,127 
-------------------------------  ------------  ------------  -------------- 
 
 Current assets 
 Receivables                          104,578       430,626          90,309 
 Cash and cash equivalents            286,773       339,793         309,815 
 
                                      391,351       770,419         400,124 
-------------------------------  ------------  ------------  -------------- 
 
 Current liabilities 
 Trade and other payables            (78,501)     (124,556)       (102,780) 
 
  Net current assets                  312,850       645,863         297,344 
-------------------------------  ------------  ------------  -------------- 
 
 Net assets                         4,517,371     4,172,363       3,989,471 
===============================  ============  ============  ============== 
 
 Equity 
 Called up share capital            2,168,453     1,877,810       1,878,592 
 Share premium account              9,116,364     8,810,794       8,812,452 
 Merger reserve                       131,096       131,096         131,096 
 Share option reserve                 370,269       416,693         443,813 
 Available for sale investment              -     (260,997)               - 
  reserve 
 Foreign currency reserve             132,895      (64,147)        (84,180) 
 Accumulated losses               (7,401,706)   (6,738,886)     (7,192,302) 
-------------------------------  ------------  ------------  -------------- 
 
 Equity attributable to 
  the owners of the parent          4,517,371     4,172,363       3,989,471 
===============================  ============  ============  ============== 
 

Consolidated Statement of Changes in Equity

 
                                                                        Available 
                                      Share                   Share      for Sale      Foreign 
                        Share       Premium      Merger      Option   Revaluation     Currency     Accumulated 
                      Capital       Account     Reserve     Reserve       Reserve      Reserve          Losses         Total 
                          GBP           GBP         GBP         GBP           GBP          GBP             GBP           GBP 
 At 30 
  September 
  2014              1,743,020     8,622,974     131,096     426,721     (148,295)     (24,741)     (6,563,497)     4,187,278 
 Loss for 
  the period                -             -           -           -             -            -       (221,576)     (221,576) 
 Change in 
  fair value                -             -           -           -     (112,702)            -               -     (112,702) 
 Exchange 
  differences               -             -           -           -             -     (39,406)               -      (39,406) 
---------------  ------------  ------------  ----------  ----------  ------------  -----------  --------------  ------------ 
 Total 
  comprehensive 
  loss for 
  the period                -             -           -           -     (112,702)     (39,406)       (221,576)     (373,684) 
---------------  ------------  ------------  ----------  ----------  ------------  -----------  --------------  ------------ 
 Share issue          134,790       187,820           -           -             -            -               -       322,610 
 Share based 
  payments 
  expense                   -             -           -      36,159             -            -               -        36,159 
 Transfer 
  of expired 
  options                   -             -           -    (46,187)             -            -          46,187             - 
--------------- 
 At 31 March 
  2015              1,877,810     8,810,794     131,096     416,693     (260,997)     (64,147)     (6,738,886)     4,172,363 
 Loss for 
  the period                                                                                         (192,419)     (192,419) 
 Transfer 
  of impairment 
  to income 
  statement                 -             -           -           -       260,997            -       (260,997)             - 
 Exchange 
  differences               -             -           -           -             -     (20,033)               -      (20,033) 
---------------  ------------  ------------  ----------  ----------  ------------  -----------  --------------  ------------ 
 Total 
  comprehensive 
  loss for 
  the period                -             -           -           -       260,997     (20,033)       (453,416)     (212,452) 
 Share issue              782         1,658           -           -             -            -               -         2,440 
 Share based 
  payments 
  expense                   -             -           -      27,120             -            -               -        27,120 
 At 30 
  September 
  2015              1,878,592     8,812,452     131,096     443,813             -     (84,180)     (7,192,302)     3,989,471 
 Loss for 
  the period                -             -           -           -             -            -       (218,994)     (218,994) 
 Impairment 
  of available 
  for sale 
  investment                -             -           -           -             -            -        (81,142)      (81,142) 
 Exchange 
  differences               -             -           -           -             -      217,075               -       217,075 
---------------  ------------  ------------  ----------  ----------  ------------  -----------  --------------  ------------ 
 Total 
  comprehensive 
  loss for 
  the period                -             -           -           -             -      217,075       (300,136)      (83,061) 
---------------  ------------  ------------  ----------  ----------  ------------  -----------  --------------  ------------ 
 Share issue          289,861       303,912           -           -             -            -               -       593,773 
 Share based 
  payments 
  expense                   -             -           -      17,188             -            -               -        17,188 
 Transfer 
  of expired 
  options                   -             -           -    (90,732)             -            -          90,732             - 
  At 31 March 
   2016             2,168,453     9,116,364     131,096     370,269             -      132,895     (7,401,706)     4,517,371 
===============  ============  ============  ==========  ==========  ============  ===========  ==============  ============ 
 

Consolidated Statement of Cash Flows

for the six months to 31 March 2016

 
 
                                    Six months   Six months       Twelve 
                                         to 31        to 31       months 
                                         March        March        to 30 
                                          2016         2015    September 
                                     Unaudited    Unaudited         2015 
                                                                 Audited 
                                           GBP          GBP          GBP 
---------------------------------  -----------  -----------  ----------- 
 Operating activity 
 
 Total loss after tax                (301,104)    (223,050)    (677,305) 
 Depreciation charge                     3,471        2,268        4,600 
 Shares issued in lieu 
  of net fees                            1,361        2,860        5,300 
 Impairment charge - exploration             -       12,180        4,522 
 Impairment charge - available 
  for sale investment                   81,142            -      260,997 
 Share based payment charge             17,188       36,159       63,278 
 Non-cash additions to 
  available for sale investment       (86,272)     (21,298)     (21,298) 
 (Increase)/decrease in 
  receivables                         (14,269)    (314,894)       25,423 
 Increase/(decrease) in 
  payables                            (24,279)     (46,994)     (68,770) 
 
 
 Net cash outflow from 
  operating activity                 (322,762)    (552,769)    (403,253) 
---------------------------------  -----------  -----------  ----------- 
 
 Investing activity 
 
 Interest received                         968        1,474        2,314 
 Purchase of intangible 
  assets                             (292,326)    (383,886)    (560,250) 
 Purchase of property, 
  plant & equipment                    (9,322)        (996)      (3,040) 
 
 
 Net cash outflow from 
  investing activity                 (300,680)    (383,408)    (560,976) 
---------------------------------  -----------  -----------  ----------- 
 
 Financing activity 
 
 Issue of share capital 
  (net of expenses)                    592,412      319,750      319,750 
 
 
 Net cash inflow from 
  financing activity                   592,412      319,750      319,750 
---------------------------------  -----------  -----------  ----------- 
 
 Net (decrease)/increase 
  in cash and cash 
  equivalents                         (31,030)    (616,427)    (644,479) 
 
 Cash and cash equivalents 
  at start of period                   309,815      942,890      942,890 
 Exchange differences                    7,988       13,330       11,404 
 
  Cash and cash equivalents 
   at end of period                    286,773      339,793      309,815 
=================================  ===========  ===========  =========== 
 

Notes to the Interim Statement

   1.       Basis of preparation 

The consolidated interim financial information has been prepared in accordance with the accounting policies that are expected to be adopted in the Group's full financial statements for the year ending 30 September 2016 which are not expected to be significantly different to those set out in Note 1 of the Group's audited financial statements for the year ended 30 September 2015. These are based on the recognition and measurement principles of IFRS in issue as adopted by the European Union (EU) or that are expected to be adopted and effective at 30 September 2016. The financial information has not been prepared (and is not required to be prepared) in accordance with IAS 34. The accounting policies have been applied consistently throughout the Group for the purposes of preparation of this financial information.

The financial information in this statement relating to the six months ended 31 March 2016 and the six months ended 31 March 2015 has neither been audited nor reviewed by the Auditors, pursuant to guidance issued by the Auditing Practices Board. The financial information presented for the year ended 30 September 2015 does not constitute the full statutory accounts for that period. The Annual Report and Financial Statements for the year ended 30 September 2015 have been filed with the Registrar of Companies. The Independent Auditors' Report on the Annual Report and Financial Statement for the year ended 30 September 2015 was unqualified, although did draw attention to matters by way of emphasis in relation to going concern, and did not contain a statement under 498(2) or 498(3) of the Companies Act 2006.

The directors prepare annual budgets and cash flow projections that extend beyond 12 months from the date of this report. These projections include the proceeds of future fundraising necessary within the next 12 months to meet the Company's and Group's planned discretionary project expenditures and to maintain the Company and Group as a going concern. Although the Company has been successful in raising finance in the past, there is no assurance that it will obtain adequate finance in the future. This represents a material uncertainty related to events or conditions which may cast significant doubt on the entity's ability to continue as a going concern and, therefore, that it may be unable to realise its assets and discharge its liabilities in the normal course of business. However, the directors have a reasonable expectation that they will secure additional funding when required to continue meeting corporate overheads and exploration costs for the foreseeable future and therefore believe that the going concern basis is appropriate for the preparation of the financial statements.

   2.       Loss per share 

Loss per share has been calculated on the attributable loss for the period and the weighted average number of shares in issue during the period.

 
 
                             Six months    Six months             Twelve 
                                  to 31         to 31             months 
                                  March         March    to 30 September 
                                   2016          2015               2015 
                              Unaudited     Unaudited            Audited 
-------------------------  ------------  ------------  ----------------- 
 
 Loss for the period 
  (GBP)                       (300,136)     (221,576)          (674,991) 
 Weighted average shares 
  in issue (No.)            215,811,549   174,341,529        181,090,346 
 Basic loss per share 
  (pence)                        (0.14)        (0.13)             (0.37) 
=========================  ============  ============  ================= 
 
 

The loss attributable to ordinary shareholders and the weighted average number of ordinary shares used for the purpose of calculating diluted earnings per share are identical to those used to calculate the basic earnings per ordinary share. This is because the exercise of share warrants would have the effect of reducing the loss per ordinary share and is therefore not dilutive under the terms of IAS33.

   3.       Share capital 

During the six months to 31 March 2016 the following share issues took place:

An issue of 28,888,889 1.0p ordinary shares at 2.25p per share, by way of placing, for a total consideration of GBP592,412 net of expenses (6 October 2015).

An issue of 97,170 1.0p ordinary shares at 1.4p per share to a director, in satisfaction of directors fees, for a total consideration of GBP1,361 (11 March 2016).

   4.       Interim report 

Copies of this interim report are available from Tertiary Minerals plc, Silk Point, Queens Avenue, Macclesfield, Cheshire SK10 2BB, United Kingdom. It is also available on the Company's website at www.tertiaryminerals.com.

This information is provided by RNS

The company news service from the London Stock Exchange

END

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