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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