TIDMAR.
RNS Number : 9876J
Archipelago Resources PLC
24 July 2013
24 July 2013
AIM: AR.
Archipelago Resources plc
("Archipelago" or "the Company")
Production Update & Unaudited Interim Results for the 6
months ended 30 June 2013
Archipelago (AIM:AR.) is pleased to announce its production and
unaudited interim results for the six months ended 30 June 2013
("H1 2013").
HIGHLIGHTS
-- Production of 72,636 Au Eq oz for H1 2013 and 41,061 Au Eq oz
for Q2 2013; being increases of 20% and 46% respectively compared
to H1 2012 and Q2 2012.
-- Net of silver credits and royalties, H1 2013 cash costs of
$618 per Au oz; being a decrease of 18% compared to H1 2012.
-- 2013 guidance maintained at 140,000 to 155,000 Au Eq oz at a
cash cost of between $620 and $680 (net of silver credits and
royalties).
-- Revenues from operations of $110.9 million, up 14% compared
to H1 2012 (notwithstanding a falling gold price environment).
-- Operating profit of $36.8 million and profit after tax of $19.1 million.
-- Strong cash generation and balance sheet maintained, with H1
2013 operating cash flows of $40.7 million and cash and cash
equivalents of $108.1 million as at 30 June 2013 supported by
greater flexibility provided by a new finance facility.
-- Declaration of a H1 2013 interim dividend of 0.5p per share
in line with the Company's dividend policy announced in March
2013.
-- Safety standards upheld with no lost time injuries in H1 2013.
-- As announced in April 2013, the total mineral resource for
the Toka Tindung Mine increased to 3.1M Au Eq oz from 2.69M Au Eq
oz.
KEY FINANCIAL METRICS
Component H1 2013 H1 2012 Difference
Gold equivalent oz produced 72,636 60,386 20%
Average realised gold price per
ounce $1,492 $1,661 (10)%
------------------------------------------- --------- -------- -----------
Cash cost per ounce $618 $753 (18)%
Revenue ($ million) $110,917 $96,957 14%
------------------------------------------- --------- -------- -----------
Gross Profit ($ million) $45,783 $37,742 21%
------------------------------------------- --------- -------- -----------
Earnings $19,094 $17,091 12%
Earnings per share $0.033 $0.028 18%
------------------------------------------- --------- -------- -----------
Cash flows from in operations ($
million) $40,733 $28,521 43%
Cash & cash equivalents to end
of period ($ million) $108,091 $22,643 377%
------------------------------------------- --------- -------- -----------
USD used; figures are in '000 (save for gold equivalent ounces
sold; average realized gold price per ounce; cash cost per
ounce).
COMMENT
Commenting on the results, Colin Sutherland, Managing Director
and CEO, said:
"Archipelago continues to deliver impressive results for
shareholders, especially given the lower gold price environment.
For the first 6 months of 2013 and compared to the same period in
2012, the Company increased gold equivalent production by over 20%
to 72,636 Au Eq oz from its Toka Tindung Mine and reported an EBIT
of $36.8 million and profit after tax of $19.1 million.
Our focus on maintaining robust margins resulted in operating
cash flows of $40.7 million and an ability to declare an interim
dividend of 0.5p for the 6 month period. We expect the Company to
maintain its strong production and cash generating profile for the
remainder of 2013."
CONFERENCE CALL
A conference call will be held for analysts and investors at
9:00am (London time) today.
Access can be obtained via the following details:
UK free call: 0808 238 0673
International dial in: +44 (0) 1452 569 335
Participant code: 21489378
WEBCAST
A live audio webcast will be available at the below link:
http://mediaserve.buchanan.uk.com/2013/archipelago240713/registration.asp
NOTES
For comparative purposes, H1 2012 refers to the six months ended
June 30, 2012. Readers should refer to the H1 2012 and H1 2013
condensed interim financial statements for complete information.
All results are presented in United States Dollars unless otherwise
stated.
COMPETENT PERSON STATEMENT
The information in this report that relates to mineral
exploration results, together with any related assessments and
interpretations, have been verified by and approved for release by
Mr. Graham Petersen B Sc (Geol), MAusIMM, a qualified geologist and
full-time employee for PT. Tambang Tondano Nusajaya, a subsidiary
of Archipelago Resources plc. Mr. Petersen has sufficient
experience which is relevant to the style of mineralization and
type of deposit under consideration and to the activity which he is
undertaking to qualify as a Competent Person as defined in the 2012
edition of the Australasian Code for Reporting of Exploration
Results, Mineral Resources & Ore Reserves. Mr. Petersen
consents to the inclusion of the information contained in this
report in the form and context in which it appears.
FURTHER INFORMATION
Archipelago Resources
plc +44 20 7523
Matthew Salthouse +65 6535 3419 8000
------------------------ --------------- --------------------- -----------
Canaccord Genuity
Limited
Andrew Chubb
Christopher Fincken
------------------------ --------------- --------------------- -----------
Grant Thornton UK LLP
Philip Secrett +44 20 7383
David Hignell 5100
------------------------ --------------- --------------------- -----------
Liberum Capital
Buchanan Limited
Bobby Morse +44 20 7466 Michael Rawlinson +44 20 3100
Gordon Poole 5000 Christopher Kololian 2000
------------------------ --------------- --------------------- -----------
ABOUT ARCHIPELAGO
Archipelago is a producing mining company listed on the AIM
market of the London Stock Exchange. Archipelago's vision is to
grow into a respected and regionally dominant mid-cap gold
producer, managing a portfolio of gold mines and delivering
significant value and returns for our shareholders. Archipelago's
principal activities are gold mining and exploration in Indonesia
(as the 95% owner of the producing Toka Tindung Gold Mine in North
Sulawesi, Indonesia). In 2013, Archipelago expects to produce
between 140,000 and 155,000 gold equivalent ounces at a cash cost
of between US$620 and US$680 per ounce (net of silver credits and
royalties).
STATEMENT ON THE AFFAIRS OF THE COMPANY
Archipelago is pleased to report yet another strong operating
and financial result. On a comparative basis, the Company's H1 2013
result exceeded the result for H1 2012 on all metrics. Archipelago
recorded strong production growth over the half, with the overall
result broadly in line with expectations.
For H1 2013, Archipelago generated revenue of $110.9 million,
operating cash flows of $40.7 million and a profit before tax of
$31.4 million (exceeding results reported for H1 2012 in each
case). This is a significant achievement, especially given lower
realised gold prices over the half and adverse weather at the Toka
Tindung Mine in Q1 2013.
For the remainder of 2013, Archipelago is on track to build on
its H1 2013 performance. The Company expects to achieve full year
production guidance of 140,000 to 155,000 Au Eq oz and
comparatively low cash costs of $620 to $680 per ounce (net of
silver credits and royalties).
Corporate Affairs
Dividend
During H1 2013, Archipelago announced a dividend policy and the
intention to pay shareholders interim and final dividends, which in
total will be at least 10% of operating cash flows for a given
period.
For the 2012 financial year, Archipelago then announced an
inaugural dividend of 1.25p per ordinary share and a special
dividend of 1p per ordinary share (collectively the "Inaugural
Dividends"). This was subject to the resolution of various
regulatory and Company constitutional matters, which have been
completed. Accordingly and in respect of the Inaugural Dividends,
Archipelago is now able to confirm that the ex-dividend date will
be 31 July 2013, the record date will be 2 August 2013 and the
actual payment date will be 30 August 2013.
For H1 2013, Archipelago is also pleased to announce a further
interim dividend of 0.5p per ordinary share ("H1 2013 Dividend").
This represents approximately 11% of the Company's H1 2013 cash
flow. For the H1 2013 Dividend, the ex-dividend date will be 11
September 2013, the record date for payment will be 13 September
2013 and the payment date will be 27 September 2013.
The Company's ability to pay dividends reflects the
transformation of Archipelago over the last 18 months as a stable
cash flow generating producer; and is an outcome of management's
focus on providing real returns for shareholders.
Debt funding
During H1 2013, Archipelago closed a new corporate financing
facility with Standard Chartered Bank and PT Bank Permata TBK
("Permata"); providing up to $160 million in funding. Under the
facility, Archipelago is able to make initial drawdowns of up to
$100 million. Subject to obtaining necessary approvals, the Company
can exercise an option to drawdown a further $60 million.
Of initial drawings, $43.5million was used to refinance
indebtedness owed to Permata and Standard Bank. Additional funds
remain available to support growth initiatives and provide
Archipelago with greater funding flexibility.
Operational Review
Production
Key operating metrics for H1 2013 and Q2 2013 are set out below
in Figure 1 (with comparative data for corresponding periods in
2012).
Figure 1: H1 2013 Production Results
Category 1H2013 1H2012 Q2'2013 Q2'2012
------------------------- ---------- ---------- ---------- -------------
Ore Mined (T) 1,297,239 1,262,714 798,967 608,946
------------------------- ---------- ---------- ---------- -------------
Waste Mined (T) 6,781,765 7,572,790 3,880,239 3,882,243
------------------------- ---------- ---------- ---------- -------------
Total Mined (T) 8,079,004 8,835,504 4,679,206 4,491,189
------------------------- ---------- ---------- ---------- -------------
Ore Processed 891,852 888,184 489,940 460,325
------------------------- ---------- ---------- ---------- -------------
Strip Ratio 5.23 6.00 4.86 6.38
------------------------- ---------- ---------- ---------- -------------
Head Grade for Au (g/t) 2.69 2.29 2.81 2.24
------------------------- ---------- ---------- ---------- -------------
Head Grade for Ag (g/t) 6.74 6.86 7.28 8.68
------------------------- ---------- ---------- ---------- -------------
Process Recovery Rate
(%) 90.85% 90.60% 91.39% 89.94.%
------------------------- ---------- ---------- ---------- -------------
Gold Ounces Produced 70,662 58,846 40,044 27,432
------------------------- ---------- ---------- ---------- -------------
Silver Ounces Produced 121,003 86,391 67,526 50,719
------------------------- ---------- ---------- ---------- -------------
Gold Ounces Produced
(Eq oz) 72,636 60,386 41,061 28,197
------------------------- ---------- ---------- ---------- -------------
Cash Costs (per Au oz) 618 753
------------------------- ---------- ---------- ---------- -------------
The calculation of H1 2013 Au Eq oz is based on Au oz plus the
conversion of Ag to Au by dividing Ag oz production by the realised
Au:Ag price ratio of 61:1 for the period. The ratio was 56:1 for Q1
and 69:1 for Q2.
The average head grade for Au Eq oz was 2.78 g/t for H1 2013 and
2.85 g/t for Q2 2013 (compared to 2.44 g/t for both H1 2012 and Q2
2012).
Production for H1 2013 was 72,636 Au Eq oz, which was 20% higher
than for the same period in 2012. Of particular note was production
for Q2 2013 of 41,061 Au Eq oz. This strong result ensured first
half production was in line with management expectations,
notwithstanding the significant rainfall events which impacted the
Q1 2013 result.
The Company continued to mine the main Toka pit and higher grade
Araren, Pajajaran and Kopra deposits. Mining will be on-going in
these deposits for the remainder of 2013. Development activities
are also occurring at Blambangan, with ore expected to be sourced
from this deposit towards the end of the year.
The strip ratio trended down over the period and was 5.23:1.00
for H1 2013 and 4.86:1.00 for Q2 2013. In large part, this was due
the higher grade ore in the Pajajaran and Kopra deposits remaining
near surface and resulting in lower overall strip rates across the
mine.
Plant throughput rates trended upwards over H1 2013, in line
with improved conditions for mining, with 489,940 tonnes of ore
processed for Q2 2013, compared to 401,912 for Q1 2013. Overall for
H1 2013, ore processed was 891,852 tonnes, compared to 888,184
tonnes for H1 2012. Recoveries improved over the half, from 90.30%
in Q1 2013 to 91.39% in Q2 2013, in part due to the implementation
of various productivity improvement initiatives. For H1 2013,
overall recoveries were 90.85%. Plant throughput rates are expected
to remain relatively stable for the remainder of the year.
Net of silver credits and excluding royalties, cash costs for H1
2013 were $618 per oz compared to $753 per oz for H1 2012, down
nearly 18%. Key components within this result were mining costs
(26%), fuel (32%), direct labour (19%) and consumables/reagents
(17%). Archipelago expects annualised cash costs to remain at
comparable levels for the remainder of the year, with the full year
result likely to be at the lower end of the guidance range.
During H1 2013, Archipelago continued to work closely with local
communities and the Company has maintained a strong social licence
in the North Sulawesi region and more broadly across Indonesia. The
Company is also pleased to report that there were no lost time
injuries during H1 2013.
Exploration
The Company's exploration efforts continue to focus on
increasing the JORC compliant resource and reserve through a
targeted drilling programme at near mine deposits. In H1 2013,
Archipelago announced encouraging drilling results from the
mineralisation at and adjacent to the high grade southern
deposits.
At the Jipang prospect, adjacent to Pajajaran, encouraging drill
intersections from 81 holes at 10,069m included:
10m at 16.61g/t Au (JIP089A, 52 - 62m) [including 1m at 42.60g/t Au; 52 - 53m]
17m at 3.81g/t Au (JIP052A, 49 - 66m) [including 5m at 8.49g/t Au; 61 - 66m]
8m at 6.49g/t Au (JIP057A, 102 - 110m) [including 3m at 11.09g/t Au; 103 - 106m]
9m at 7.31g/t Au (JIP066, 72 - 81m)
10m at 4.83g/t Au (JIP068, 65 - 75m)
11m at 6.28g/t Au (JIP068A, 77 - 88m)
4m at 13.21g/t Au (JIP069, 128 - 132m) [including 1m at 36.20g/t Au; 129 - 130m]
18m at 3.94g/t Au (JIP070A, 115 - 133m) [including 4m at 9.59g/t Au; 121 - 125m]
9m at 6.05g/t Au (JIP073A, 67 - 76m)
6m at 10.73g/t Au (JIP076, 68 - 74m)
2m at 17.88g/t Au (JIP096, 70 - 72m) [including 1m at 26.90g/t Au; 71 - 72m]
4m at 8.44g/t Au (JIP097A, 98 - 102m) [including 2m at 15.25g/t Au; 98 - 100m]
7m at 10.00g/t Au (JIP102, 46 - 53m) [including 2m at 21.65g/t Au; 46 - 48m]
7m at 8.83g/t Au (JIP103, 146 - 153m) [including 3m at16.97g/t Au; 147 - 150m]
5m at 7.61g/t Au (JIP106, 130 - 135m) [including 3m at 9.50g/t Au; 130 - 133m]
Further drilling was also reported at the Blambangan and
Pajajaran deposits, with highlights including:
Blambangan:
8m at 7.93g/t Au (BP060A, 156 - 164m) [including 3m at 17.92g/t Au; 158 - 161m]
8m at 3.41g/t Au (BP060, 146 - 154m) [including 1m at 13.60g/t Au; 146 - 147m]
Pajajaran:
13m at 5.98g/t Au (PJJ028, 205 - 218m) [including 2m at 27.55g/t Au; 206 - 208m]
5m at 10.32g/t Au (PJJ049, 24 - 29m)
6m at 5.71g/t Au (PJJ047, 103 - 109m) [including 1m at 21.60g/t Au; 105 - 106m]
4m at 9.22g/t Au (PJJ046, 7 - 11m) [including 2m at 14.85g/t Au; 7 - 9m]
7m at 4.44g/t Au (PJJ044, 143 - 150m) [including 1m at 10.50g/t Au; 147 - 148m]
8m at 3.59g/t Au (PJJ040, 224 - 232m) [including 2m at 8.81g/t Au; 224 - 226m]
10m at 3.64g/t Au (PJJ048, 92 - 102m) [including 1m at 18.40g/t Au; 100 - 101m]
5m at 6.95g/t Au (PJJD051, 230 - 235m)
The results confirm the existence of high grade extensions at
depth for both deposits.
In addition to the 2012 drilling results, the above intercepts
were included in the updated JORC compliant resource announced
during H1 2013. In this regard and as of 31 December 2012, the Toka
Tindung Mine's overall resource on a gold equivalent basis
increased to 3.1M Au Eq oz. Excluding silver as gold equivalent
ounces and net of depletion from mining, the contained gold
resource increased by more than 400,000 ounces or 16%. Resources
from the high grade southern deposits increased significantly by
34% to 1.34M Au oz.
Figure 2 below sets out the changes to resource between 2011 and
2012.
Figure 2: Comparison of 2011 & 2012 Resource for Toka
Tindung Mine
To view Figure 2 please click on the link below
http://www.rns-pdf.londonstockexchange.com/rns/9876J_-2013-7-23.pdf
The Company is currently finalising an update to the ore reserve
and expects to publish this in the near future.
Financial performance
30 June 2013 30 June 2012
(6 months (6 months
unaudited)
unaudited)
------------------------------------------- ------------- -------------
US$000 US$000
Revenue 110,917 96,957
Gross profit 45,783 37,742
------------------------------------------- ------------- -------------
Earnings Before Interest & Tax 36,773 32,540
Profit before income tax 31,459 28,589
------------------------------------------- ------------- -------------
Profit attributable to the parent company 17,929 16,027
------------------------------------------- ------------- -------------
Net cash generated by operations 40,733 28,521
Net cash inflow 56,963 292
------------------------------------------- ------------- -------------
Revenue
Revenue from gold and silver sales rose to $111 million (H1
2012: $97 million), due to significant increases in gold &
silver volumes, up 28% and 23% respectively, resulting in gold
equivalent ounces sold increasing to 74,332 (H1 2012: 58,398).
However, this was partly offset by a fall in average realised
prices, with gold down 10% to $1,492 per ounce (H1 2012: $1,661)
and silver down 17% to $24 per ounce (H1 2012: $29).
Gross Profit
Gross profit was $46 million (H1 2012: $38 million), with the
increase principally driven by greater production volumes, which
also resulted in lowering cash costs. Cash costs also benefited
from favourable strip ratios, higher grades and continuing
production efficiencies resulting in lower consumption across some
key costs, notably fuel, drilling and processing reagents.
Importantly, even though margins were partly eroded by the fall in
average realised prices, the gross margin profit rose to 41% (H1
2012: 39%).
Earnings before Interest & Tax (EBIT)
EBIT rose to $37 million (H1 2012: $33 million), after taking
into account administrative and other costs totalling $9 million
(H1 2012: $5 million). The increase in administrative and other
expenses principally reflect one off staff restructuring costs,
increased legal and consultant fees associated with the new
financing facility and other corporate activities; and translation
losses arising from devaluation of the Rupiah.
Taxation
Taxation charges rose marginally to $12 million (H1 2012: $11
million), the increase reflective of increased profitability.
Importantly, the group's overall effective tax rate fell slightly
to 39% (H1 2012: 40%).
Profit after tax
Profit after tax rose to $19 million (H1 2012: $17 million), of
which $18 million (H1 2012: $16 million) was attributable to the
parent company.
Cash Balance & Operating Cash Flows
Group cash and cash equivalents on 30 June 2013 was $108
million, reflecting net cash inflows of $57 million, which was
largely attributable to net proceeds from the new financing
facility. Operating cash flows rose $12 million to $41 million (H1
2012: $29 million), driven by strong working capital management,
offset by higher annual tax payments and instalments relative to
2012. On a pre-tax basis, operating cash flows increased by $25
million, which was a strong result given the weak pricing
environment.
Outlook & Strategy
Archipelago expects the strong performance for H1 2013 to
continue for the remainder of the year and, as noted above,
reiterates its 2013 full year guidance of 140,000 to 155,000 Au Eq
oz at a cash cost of $620 to $680 per oz (net of silver credits and
royalties).
The Company will continue to drive exploration efforts. In
addition to drilling at depth and adjacent to known deposits,
Archipelago is commencing activities at the prospective Marawuwung
area to the west of the main Toka pit. 32,400m of drilling is
planned for this area over the course of 2013. The objective of the
programme is to develop a resource for Marawuwung; with the
prospect sharing similar geological characteristics to that of the
main Toka pit.
In relation to the Southern deposits, drilling during 2012
focused on testing the extension of the known deposits. This
resulted in a 110% increase in the inferred ounces for the Southern
deposits as part of the Resource upgrade announced during H1 2013.
Drilling in 2013 is now focused on converting these inferred ounces
into the measured and indicated category; and also into reserves.
Results are expected to be incorporated into the year end Resource
and Reserve statement. In this regard, Archipelago's focus remains
on expanding the resource and reserve which already supports a 9
year life-of-mine (plus 7 years of processing lower grade
stockpiles).
Archipelago is continuing to study options for plant expansion
to support increased throughput on a greater reserve, with the work
being reviewed against the current gold market dynamics. In this
regard, the Company will continue to take a prudent approach,
before entering any commitments for plant expansion. The Company
will continue to monitor the global outlook for gold when assessing
expansion options and update investors accordingly as the year
progresses.
The development of heap leaching also remains under
consideration. Heap leaching will facilitate the recovery in the
near term of gold from stockpiles and/or lower grade ore (with such
ore potentially capable of inclusion in an expanded reserve). This
would enable an increase in Archipelago's overall production rates
for a relatively small capital investment. Heap leaching would also
support the Company's low cost profile. Consultants are in the
advanced stages of completing the metallurgical work and scoping
studies to support this initiative and the Company expects to
provide further details during the course of 2013.
In addition to organic growth initiatives, Archipelago continues
to examine corporate opportunities; with the Company's strong
balance sheet providing significant financing flexibility in this
regard. Any corporate initiative, however, remains subject to
rigorous internal assessment.
For 2013, Archipelago's key focus remains on delivering against
operational targets; so as to maintain a profitable and strong cash
generating business.
INTERIM FINANCIAL STATEMENTS & NOTES
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the six months ended 30 June 2013
Unaudited Unaudited
6 months 6 months ended
ended
30 June 30 June
2013 2012
-------------------------------------- ------ ------------ ----------------
Notes US$000 US$000
REVENUE 110,917 96,957
Cost of sales (65,134) (59,215)
GROSS PROFIT 45,783 37,742
------------ ----------------
Other income 484 25
Administrative and Other expenses (9,494) (5,227)
OPERATING PROFIT 36,773 32,540
------------ ----------------
Finance costs (5,314) (3,951)
PROFIT BEFORE INCOME TAX 31,459 28,589
------------ ----------------
Taxation (12,365) (11,498)
PROFIT FOR THE HALF YEAR 19,094 17,091
TOTAL COMPREHENSIVE INCOME 19,094 17,091
------------ ----------------
ATTRIBUTABLE TO:
Owners of the parent 17,929 16,027
Non-controlling Interests 1,165 1,064
19,094 17,091
============ ================
EARNINGS PER SHARE (cents per share)
Basic 2 0.033 0.028
There were no recognised gains or losses other than those shown
above. All the group's activities consist of continuing
operations.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
At 30 June 2013
Unaudited Audited
30 June 31 December
2013 2012
----------------------------------------- ------ ---------- -------------
Note US$000 US$000
NON- CURRENT ASSETS
Property, plant and equipment 3 135,091 138,175
Development, exploration and evaluation 4 132,951 122,925
Deferred Stripping - 2,000
Investments 651 651
Inventories 8,485 -
Other receivables 23,158 27,824
---------- -------------
300,336 291,575
---------- -------------
CURRENT ASSETS
Inventories 23,960 30,848
Trade and other receivables 6,122 8,057
Cash and cash equivalents 108,091 51,128
---------- -------------
138,173 90,033
TOTAL ASSETS 438,509 381,608
========== =============
EQUITY AND LIABILITIES
Share capital 9,473 9,473
Share premium 100,000 209,430
Other reserves 1,149 1,149
Retained Earnings 150,549 23,190
---------- -------------
Equity attributable to owners
of the parent 261,171 243,242
---------- -------------
Non-controlling interest 4,221 3,056
---------- -------------
TOTAL EQUITY 265,392 246,298
---------- -------------
NON-CURRENT LIABILITIES
Other financial liabilities 5 84,076 32,100
Deferred tax liability 19,913 16,260
Provisions 14,900 14,126
118,889 62,486
---------- -------------
CURRENT LIABILITIES
Trade and other payables 29,346 28,001
Interest-bearing loans and borrowings 5 21,981 31,098
Corporate taxes payable 2,901 13,725
---------- -------------
54,228 72,824
TOTAL EQUITY AND LIABILITIES 438,509 381,608
========== =============
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the six months ended 30 June 2013
Share Share Other Retained Non-controlling Total
capital premium reserves earnings Total interest Equity
----------------------- --------- ---------- ---------- ---------- -------- ---------------- ---------
US$000 US$000 US$000 US$000 US$000 US$000 US$000
Changes in equity
for 2013
As at 1 January 2013 9,473 209,430 1,149 23,190 243,242 3,056 246,298
Total comprehensive
income - - - 17,929 17,929 1,165 19,094
Share premium reserve
transfer - (109,430) - 109,430 - - -
Balance at 30 June
2013 9,473 100,000 1,149 150,549 261,171 4,221 265,392
========= ========== ========== ========== ======== ================ =========
CONSOLDIATED STATEMENT OF CASH FLOW
For the six months ended 30 June 2013
Unaudited Unaudited
30 June 30 June
2013 2012
--------------------------------------------- ---------- ----------
US$000 US$000
CASH INFLOWS FROM OPERATING ACTIVITIES 40,733 28,521
---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES
Payments to acquire property, plant and
equipment (12,114) (5,915)
Payments for development, exploration
and evaluation expenditure (7,216) (8,979)
Proceeds from sale of assets 278 -
---------- ----------
NET CASH USED IN INVESTING ACTIVITIES (19,052) (14,894)
---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES
Issue of ordinary share capital - 196
Proceeds from borrowings 100,000 -
Borrowing cost (4,408) -
Repayment of borrowings (57,000) (10,567)
Lease payments (1,346) (697)
Interest paid (1,964) (2,267)
---------- ----------
NET CASH GENERATED FROM/(USED IN) FINANCING
ACTVITIES 35,282 (13,335)
---------- ----------
NET INCREASE IN CASH AND CASH EQUIVALENTS 56,963 292
CASH AND CASH EQUIVALENTS AT START OF
PERIOD 51,128 22,351
---------- ----------
CASH AND CASH EQUIVALENTS AT END OF PERIOD 108,091 22,643
========== ==========
1. BASIS OF PRESENTATION
The unaudited condensed financial statements for the six months
ended 30 June 2013:
-- were prepared in accordance with International Accounting
Standard 34 "Interim Financial Reporting" ("IAS 34") and thereby
International Financial Reporting Standards ("IFRS"), both as
issued by the International Accounting Standards Board ("IASB") and
as adopted by the European Union ("EU");
-- are presented on a condensed basis as permitted by IAS 34 and
therefore do not include all disclosures that would otherwise be
required in a full set of financial statements and should be read
in conjunction with the 2012 Annual Report;
-- apply the same accounting policies, presentation, and methods
of calculation as those followed in the preparation of the annual
financial statements for the year ended 31 December 2012;
-- include all adjustments, consisting of normal recurring
adjustments, necessary for a fair statement of the results for the
periods presented; and
-- were approved by the Board of Directors on 24 July 2013.
The information relating to the year ended 31 December 2012 is
an extract from the published Annual Report released to the market
earlier this year, on which the Independent Auditors' Report was
unqualified.
The preparation of the condensed financial statements requires
management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the balance sheet date, and
the reported amounts of revenues and expenses during the reporting
period. Actual results could vary from these estimates. The
estimates and underlying assumptions are reviewed on an on-going
basis. Revisions to accounting estimates are recognised in the
period in which the estimate is revised if the revision affects
only that period or in the period of revision and future periods if
the revision affects both current and future periods.
The financial statements are presented in US dollars which is
the group functional currency and all values are rounded to the
nearest thousand ($000), except when otherwise indicated. The
company is incorporated in the United Kingdom and the principal
places of business are Singapore and Indonesia.
2. EARNINGS PER SHARE
The calculation of basic earnings per share is based on a profit
of $17.9 million (2012: $16.0 million), and on 575,592,635 (2012:
573,843,649) ordinary shares, being the weighted average number of
ordinary shares in issue during the year.
3. PROPERTY PLANT & EQUIPMENT
Land and Mine Mine Office
mine buildings plant Motor Construction Closure plant Total
US$000 and vehicles in progress Asset and equipment
equipment US$000 US$000 US$000
US$000 US$000 US$000
------------ ------------------- ---------- ------------ -------------------- ----------- --------------- ------------
Half Year ended 30 June
2013
Cost
At 1 January
2013 15,155 121,581 3,818 9,195 11,310 1,946 163,005
Additions 299 108 1,255 10,452 - - 12,114
Disposals (426) - (414) - - - (840)
Reclassification 1,609 2,723 51 (5,764) - 1,381 -
Transfer to
mine development (1,937) (4,831) - (3,347) - (34) (10,149)
Transfer from
Deferred Stripping - - - 1,570 - - 1,570
---------- ---------- ------------ -------------------- ---------------- ---------- ------------
At 30 June
2013 14,700 119,581 4,710 12,106 11,310 3,293 165,700
---------- ---------- ------------ -------------------- ---------------- ---------- ------------
Depreciation
At 1 January
2013 (2,168) (18,858) (1,841) - (1,390) (573) (24,830)
Charge for
the year:
Depreciation (421) (5,702) (258) - (465) (190) (7,036)
Disposals - - 136 - - - 136
Reclassification 28 (193) 518 - - (353) -
Transfer to
Mine Development 490 631 - - - - 1,121
---------- ---------- ------------ -------------------- ---------------- ---------- ------------
At 30 June
2013 (2,071) (24,122) (1,445) - (1,855) (1,116) (30,609)
---------- ---------- ------------ -------------------- ---------------- ---------- ------------
Net book value
At 1 January
2013 12,987 102,723 1,977 9,195 9,920 1,373 138,175
---------- ---------- ------------ -------------------- ---------------- ---------- ------------
At 30 June
2013 12,629 95,459 3,265 12,106 9,455 2,177 135,091
========== ========== ============ ==================== ================ ========== ============
4. DEVELOPMENT, EXPLORATION AND EVALUATION
Exploration
Development and evaluation Total
US$000 US$000 US$000
------------------------------- ------------ ---------------- --------
Half Year ended 30 June 2013
Net book value
At 1 January 2013 108,870 14,055 122,925
Expenditure during the period - 7,216 7,216
Reclassified from PP&E 9,028 - 9,028
Amortisation (6,218) - (6,218)
At 30 June 2013 111,680 21,271 132,951
------------ ---------------- --------
5. INTEREST BEARING LOANS
On 28 May 2013, the Group's Singapore and Indonesian entities,
Archipelago Resources Pte Ltd, PT Meares Soputan Mining and PT
Tambang Tondano Nusajaya, as co-borrowers entered into a new loan
facility agreement with Standard Chartered Bank (SCB), Singapore
Branch (Offshore Facility Lender) and Permata (Onshore Facility
Lender).
The loan facility is for an initial US$ 100,000,000, consisting
of an offshore loan facility (up to US$ 50,000,000) and an onshore
loan facility (up to US$ 50,000,000). Under the Facility Agreement,
the borrowers may also apply to drawdown up to an additional US$
60,000,000 provided the application is made within 12 months after
the date of the agreement and subject to the consent of the
lenders.
6. SUBSEQUENT EVENTS
No matter or circumstance has arisen since 30 June 2013 that has
significantly affected, or will significantly affect the group's
operations, results or state of affairs.
INDEPENDENT REVIEW REPORT
INTRODUCTION
We have been engaged by the Group to review the condensed set of
financial statements in the half--yearly interim report for the six
months ended 30 June 2013, which comprises the Consolidated
Statement of Comprehensive Income, the Consolidated Statement of
Financial Position, the Consolidated Statement of Changes in
Equity, the Consolidated Statement of Cash Flow and the related
notes. We have read the other information contained in the
half--yearly interim report and considered whether it contains any
apparent misstatements or material inconsistencies with the
information in the condensed set of financial statements.
DIRECTORS' RESPONSIBILITIES
The half--yearly interim report is the responsibility of, and
has been approved by, the Directors. As disclosed in note 1, the
half--yearly interim financial statements of the Group are prepared
in accordance with International Financial Reporting Standards
("IFRS") as adopted by the European Union. The condensed set of
financial statements included in this half--yearly interim report
has been prepared in accordance with International Accounting
Standard ("IAS") 34 "Interim Financial Reporting" as adopted by the
European Union.
OUR RESPONSIBILITY
Our responsibility is to express to the Company a conclusion on
the condensed set of financial statements in the half--yearly
interim report based on our review.
SCOPE OF REVIEW
We conducted our review in accordance with International
Standard on Review Engagements (UK and Ireland) 2410, "Review of
Interim Financial Information Performed by the Independent Firm of
the Entity" issued by the Auditing Practices Board for use in the
United Kingdom. A review of interim financial information consists
of making enquiries, primarily of persons responsible for financial
and accounting matters, and applying analytical and other review
procedures. A review is substantially less in scope than an audit
conducted in accordance with International Standards on Auditing
(UK and Ireland) and consequently does not enable us to obtain
assurance that we would become aware of all significant matters
that might be identified in an audit. Accordingly, we do not
express an audit opinion.
CONCLUSION
Based on our review, nothing has come to our attention that
causes us to believe that the condensed set of financial statements
in the half--yearly interim report for the six months ended 30 June
2013 is not prepared, in all material respects, in accordance with
International Accounting Standard 34 as adopted by the European
Union.
CHANTREY VELLACOTT DFK LLP
Chartered Accountants
Statutory Auditor
London
24 July 2013
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCQXLFLXDFFBBL
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