TIDMTYM
RNS Number : 6962N
Tertiary Minerals PLC
20 May 2015
20 May 2015
TERTIARY MINERALS PLC
(the "Company")
HALF-YEARLY REPORT 2015
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 2015.
Operational Highlights:
Storuman Fluorspar Project, Sweden:
-- Application for Exploitation (Mine) Permit progressing.
-- Primary stage of stakeholder consultation completed.
-- Metallurgical testwork optimisation now in final stage on
Upper Horizon mineralisation and continuing on Lower Horizon.
MB Fluorspar Project, Nevada, USA:
-- Landholding expanded - 57 additional claims staked.
-- Phase 3 drilling results completed - 2,516 metres drilled in 9 RC holes.
-- New "Western Area" defined by 700m step-out hole 14MBRC027, intersected:
o 307.8m grading 8.4% CaF(2) from 59.44m depth, including:
-- 141.7m grading 11.5% CaF(2) of continuous mineralisation from
225.55m depth;
-- 70.10m grading 16.6% CaF(2) from 59.44m, total of several
higher grade intersections above 15% CaF(2) .
o Mineralisation continuing at end of hole (516m).
-- Multiple thick intersections of higher grade fluorspar
mineralisation continuing laterally and at depth demonstrate
potential to add substantially to the existing Mineral Resource
base.
-- New Mineral Resource Estimate in progress.
Financial Results - Summary:
-- Group Loss for the six month period - GBP221,576 (six months
to 31 March 2014: GBP84,134) comprises:
o Administration costs of GBP209,230 (which includes non-cash
share based payments of GBP36,159)
o Pre-licence (reconnaissance) costs totalling GBP1,640
o Impairments to net assets of GBP12,180
o Interest income of GBP1,474.
-- 13,479,035 ordinary shares were issued during the reporting period as follows;
o Placing of 13,207,547 shares at 2.65p per share on 31 March
2015 to raise GBP350,000 before expenses
o Issue of 71,488 shares to non-executive directors in lieu of
fees at a price of 4p per share
o Issue of 200,000 shares pursuant to the exercise of warrants
at a price of 2.375p per share.
Enquiries
Tertiary Minerals plc
Patrick Cheetham, Executive
Chairman
Richard Clemmey, Managing
Director +44 (0)845 868 4580
SP Angel Corporate Finance
LLP
Nominated Adviser & Joint
Broker
Ewan Leggat
Katy Birkin +44 (0) 20 3470 0470
Beaufort Securities Ltd
Joint Broker
Saif Janjua +44 (0)20 7382 8300
Yellow Jersey PR Limited
Dominic Barretto
Kelsey Traynor +44 (0)7768 537 739
Chairman's Statement
I am delighted to be reporting our results for the six month
period ended 31 March 2015, a period of significant operational
progress for the Company.
Our most advanced project is the Storuman fluorspar deposit in
Sweden where we have a JORC compliant Indicated and Inferred
Mineral Resource of 27.8 million tonnes grading 10.21% (CaF(2) )
fluorspar and where in summer last year we submitted our
application for an Exploitation (Mine) Permit. This application has
progressed through various primary stakeholder consultation and
comment stages. The County Administration Board of Västerbotten has
given approval for the Mining Concession area, where they believe
mining and reindeer husbandry can co-exist, however objections have
been received from the Sami reindeer husbandry community. The
Mining Inspector, who will make the final decision, will need to
take these opinions into consideration prior to making a decision
which we expect within the next few months. In the meantime our
minerals processing testwork is progressing onto final locked cycle
tests for the Upper Horizon mineralisation whilst still looking to
optimise the process route for the Lower Horizon.
Whilst the Storuman Project is a key asset for the Company, the
size of the Storuman Mineral Resource Estimate has already been
surpassed by that defined last year at our MB Project where the
JORC compliant Indicated and Inferred Mineral Resource was
estimated at 38.4 million tonnes grading 10.4% fluorspar (CaF(2) )
in the Southern and Central areas of the deposit.
Without doubt the main development this reporting period has
been the success of the Phase 3 drill programme at the MB Project,
Nevada. This included a "wildcat" step-out hole located more than
700m to the west of the existing Mineral Resource boundary testing
a conceptual target for higher grade fluorspar closer to the
interpreted source of mineralisation. This hole, in what is now
called the 'Western Area', struck over 300m of fluorspar
mineralisation including 70m grading 16.6% CaF(2) from 59.44m in
several higher grade intersections. It ended in mineralisation at
516m depth. Two further holes located approximately 140m from the
western boundary of the Central Area of the existing Mineral
Resource and 420m to the east of this step-out hole also
encountered multiple thick intersections of fluorspar continuing at
depth.
Phase 3 drilling was successful in joining up the mineralisation
in the Southern and Central areas of the Mineral Resource and it is
highly probable that these areas are also continuous with the newly
discovered Western Area and the mineralisation still remains open
in most directions and at depth. We now look forward to the results
of the modelling of the Phase 3 results and expect to see an
increase in the size of the already large existing Mineral
Resource.
Further resource estimation work is in progress, as is planning
for further drilling and geophysical exploration aimed at a better
understanding of the scale of the mineralised system currently
being evaluated.
The MB Project is exciting, world-class in its scope, and just
one of three geographically strategic fluorspar assets controlled
by the Company and so it is unfortunate that recent results
coincide with cyclical lows in mining markets and commodity
prices.
Many commentators believe that we are at the bottom of the
current cycle and we look forward to a market recovery where we
anticipate the value of the business we are building will be
reflected in a substantial re-rating of the Company.
Patrick L Cheetham
Executive Chairman
20 May 2015
Consolidated Income Statement
for the six months to 31 March 2015
Six months Six months Twelve
to 31 to 31 months
March March to 30
2015 2014 September
Unaudited Unaudited 2014
Audited
GBP GBP GBP
---------------------------------- ----------- ----------- -----------
Pre-licence exploration
costs 1,640 7,100 9,214
Impairment of deferred
exploration costs 12,180 - 3,254
Non-cash movement of
liability under Equity
Swap Agreement - (72,708) (72,708)
Administrative expenses 209,230 152,104 423,459
---------------------------------- ----------- ----------- -----------
Operating loss (223,050) (86,496) (363,219)
Interest receivable 1,474 2,362 4,412
Loss on ordinary activities
before taxation (221,576) (84,134) (358,807)
Tax on loss on ordinary - - -
activities
---------------------------------- ----------- ----------- -----------
Loss for the period attributable
to equity holders of
the parent (221,576) (84,134) (358,807)
================================== =========== =========== ===========
Loss per share - basic
and fully diluted (pence)
(note 2) (0.13) (0.05) (0.22)
================================== =========== =========== ===========
Consolidated Statement of Comprehensive Income
for the six months to 31 March 2015
Six months Six months Twelve
to to months
31 March 31 March to
2015 2014 30 September
Unaudited Unaudited 2014
Audited
GBP GBP GBP
-------------------------------- ----------- ----------- --------------
Loss for the period (221,576) (84,134) (358,807)
-------------------------------- ----------- ----------- --------------
Other comprehensive
income
Items that will not
be reclassified subsequently
to the income statement:
Movement in valuation
of available for sale
investment (112,702) (28,349) (61,896)
-------------------------------- ----------- ----------- --------------
(112,702) (28,349) (61,896)
-------------------------------- ----------- ----------- --------------
Items that could be
reclassified subsequently
to the income statement:
Foreign exchange translation
differences on foreign
currency net investments
in subsidiaries (39,406) (62,794) (161,845)
-------------------------------- ----------- ----------- --------------
(39,406) (62,794) (161,845)
-------------------------------- ----------- ----------- --------------
Total comprehensive
loss for the period
attributable to the
equity holders of
the parent (373,684) (175,277) (582,548)
================================ =========== =========== ==============
Company Registration Number 03821411
Consolidated Statement of Financial Position
at 31 March 2015
As at As at As at
31 March 31 March 30 September
2015 2014 2014
Unaudited Unaudited Audited
GBP GBP GBP
-------------------------------- ------------ ------------ --------------
Non-current assets
Intangible assets 3,370,694 2,853,140 3,051,724
Property, plant & equipment 7,584 5,943 8,856
Available for sale investment 148,222 273,173 239,626
-------------------------------- ------------ ------------ --------------
3,526,500 3,132,256 3,300,206
-------------------------------- ------------ ------------ --------------
Current assets
Receivables 430,626 84,561 115,732
Cash and cash equivalents 339,793 914,748 942,890
770,419 999,309 1,058,622
-------------------------------- ------------ ------------ --------------
Current liabilities
Trade and other payables (124,556) (207,292) (171,550)
(124,556) (207,292) (171,550)
-------------------------------- ------------ ------------ --------------
Net current assets 645,863 792,017 887,072
-------------------------------- ------------ ------------ --------------
Net assets 4,172,363 3,924,273 4,187,278
================================ ============ ============ ==============
Equity
Called up share capital 1,877,810 1,639,662 1,743,020
Share premium account 8,810,794 8,141,354 8,622,974
Merger reserve 131,096 131,096 131,096
Share option reserve 416,693 390,344 426,721
Available for sale revaluation
reserve (260,997) (114,748) (148,295)
Foreign currency reserve (64,147) 74,310 (24,741)
Accumulated losses (6,738,886) (6,337,745) (6,563,497)
-------------------------------- ------------ ------------ --------------
Equity attributable to
the owners of the parent 4,172,363 3,924,273 4,187,278
================================ ============ ============ ==============
Consolidated Statement of Changes in Equity
Share Share Merger Share Available Foreign Accumulated Total
Capital Premium Reserve Option for sale currency losses
account reserve revaluation reserve
reserve
GBP GBP GBP GBP GBP GBP GBP GBP
At 30 September
2013 1,617,662 8,008,604 131,096 404,194 (86,399) 137,104 (6,253,611) 3,958,650
Loss for the
period - - - - - - (84,134) (84,134)
Change in fair
value - - - - (28,349) - - (28,349)
Exchange differences - - - - - (62,794) - (62,794)
---------------------- ----------- ----------- --------- --------- ------------ ---------- ------------- -----------
Total comprehensive
loss for the
period - - - - (28,349) (62,794) (84,134) (175,277)
---------------------- ----------- ----------- --------- --------- ------------ ---------- ------------- -----------
Share issue 22,000 132,750 - - - - - 154,750
Share based
payments - - - (13,850) - - - (13,850)
At 31 March
2014 1,639,662 8,141,354 131,096 390,344 (114,748) 74,310 (6,337,745) 3,924,273
Loss for the
period - - - - - - (274,673) (274,673)
Change in fair
value - - - - (33,547) - - (33,547)
Exchange difference - - - - - (99,051) - (99,051)
Total comprehensive
loss for the
period - - - - (33,547) (99,051) (274,673) (407,271)
Share issue 103,358 481,620 - - - - - 584,978
Share based
payments - - - 36,377 - - 48,921 85,298
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 difference - - - - - (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 - - - (10,028) - - 46,187 36,159
At 31 March
2015 1,877,810 8,810,794 131,096 416,693 (260,997) (64,147) (6,738,886) 4,172,363
====================== =========== =========== ========= ========= ============ ========== ============= ===========
Consolidated Statement of Cash Flows
for the six months to 31 March 2015
Six months Six months Twelve
to 31 to 31 months
March March to 30
2015 2014 September
Unaudited Unaudited 2014
Audited
GBP GBP GBP
-------------------------------- ----------- ----------- -----------
Operating activity
Operating loss (223,050) (86,496) (363,219)
Depreciation charge 2,268 3,088 6,925
Impairment charge 12,180 - 3,254
Share based payment charge 36,159 (13,850) 71,449
Non-cash movement of
liability under Equity
Swap Agreement - (72,708) (72,708)
Non-cash additions to
available for sale investment (21,298) (71,271) (71,271)
(Increase)/decrease in
receivables (314,894) (3,071) (34,242)
Increase/(decrease) in
payables (46,994) (26,589) (62,331)
Net cash outflow from
operating activity (555,629) (270,897) (522,143)
-------------------------------- ----------- ----------- -----------
Investing activity
Interest received 1,474 2,362 4,412
Purchase of intangible
assets (383,886) (494,323) (788,482)
Purchase of property,
plant & equipment (996) (414) (7,176)
Net cash outflow from
investing activity (383,408) (492,375) (791,246)
-------------------------------- ----------- ----------- -----------
Financing activity
Issue of share capital
(net of expenses) 322,610 154,750 739,728
Net transfer to restricted
cash - 336,333 336,333
Net cash inflow from
financing activity 322,610 491,083 1,076,061
-------------------------------- ----------- ----------- -----------
Net (decrease)/increase
in cash and cash
equivalents (616,427) (272,189) (237,328)
Cash and cash equivalents
at start of period 942,890 1,187,612 1,187,612
Exchange differences 13,330 (675) (7,394)
Cash and cash equivalents
at end of period 339,793 914,748 942,890
================================ =========== =========== ===========
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 2015 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 2014. These
are based on the recognition and measurement principles of IFRS in
issue as adopted by the European Union (EU) and are effective at 30
September 2015 or are expected to be adopted and effective at 30
September 2015. 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 2015 and the six months ended 31 March 2014
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 2014 does not
constitute the full statutory accounts for that period. The Annual
Report and Financial Statements for the year ended 30 September
2014 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 2014 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
2015 2014 2014
Unaudited Unaudited Audited
------------------------- ------------ ------------ -----------------
Loss for the period
(GBP) (221,576) (84,134) (358,807)
Weighted average shares
in issue (No.) 174,341,529 162,290,390 165,522,417
Basic loss per share
(pence) (0.13) (0.05) (0.22)
========================= ============ ============ =================
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 2015 the following share
issues took place:
An issue of 71,488 1p ordinary shares at 4p per share to two
directors, in satisfaction of directors' fees, for a total
consideration of GBP2,860 (20 February 2015).
An issue of 200,000 1p ordinary shares at 2.375p per share,
being a share warrant exercise, for a total consideration of
GBP4,750 (9 March 2015).
An issue of 13,207,547 1p ordinary shares at 2.65p per share, by
way of placing, for a total consideration of GBP315,000 net of
expenses (31 March 2015). These shares became paid up on 17April
2015 and the amount due is reflected in receivables.
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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