TIDMHZM
RNS Number : 9658G
Horizonte Minerals PLC
12 November 2018
12 November 2018
HORIZONTE MINERALS QUARTERLY FINANCIAL STATEMENTS FOR THE THREE
MONTHSED 30 SEPTEMBER 2018
____________________________________________________________________________________
Horizonte Minerals Plc, (AIM: HZM, TSX: HZM) ('Horizonte' or
'the Company'), the nickel development company focused in Brazil,
is pleased to announce its unaudited financial results for the
three month period to 30 September 2018. These results, as well as
a Management Discussion & Analysis, have been posted on the
Company's website www.horizonteminerals.com and are also available
on SEDAR at www.sedar.com.
For further information visit www.horizonteminerals.com or
contact:
Horizonte Minerals plc
Jeremy Martin (CEO) +44 (0) 203 356 2901
Numis Securities Ltd (NOMAD & Broker)
John Prior
Paul Gillam +44 (0) 207 260 1000
Shard Capital (Joint Broker)
Damon Heath
Erik Woolgar +44 (0) 20 186 9952
Tavistock (Financial PR)
Emily Fenton
Gareth Tredway +44 (0) 207 920 3150
About Horizonte Minerals:
Horizonte Minerals plc is an AIM and TSX-listed nickel
development company focused in Brazil. The Company is developing
the Araguaia project, as the next major ferronickel mine in Brazil,
and the Vermelho nickel-cobalt project, with the aim of being able
to supply nickel and cobalt to the EV battery market. Both projects
are 100% owned.
Horizonte Minerals plc
Condensed Consolidated Interim Financial Statements for the nine
months ended 30 September 2018
Condensed consolidated statement of comprehensive income
9 months ended 3 months ended
30 September 30 September
2018 2017 2018 2017
-------------------------------------------------------- ------ ------------ ------------ ------------ ----------
Unaudited Unaudited Unaudited Unaudited
-------------------------------------------------------- ------ ------------ ------------ ------------ ----------
Notes GBP GBP GBP GBP
-------------------------------------------------------- ------ ------------ ------------ ------------ ----------
Continuing operations
Revenue - - - -
Cost of sales - - - -
-------------------------------------------------------- ------ ------------ ------------ ------------ ----------
Gross profit - - - -
Administrative expenses (1,138,978) (959,250) (353,630) (304,702)
Charge for share options granted (633,222) (101,931) (338,516) (23,121)
Change in value of contingent consideration (265,378) 255,342 (70,904) 102,248
Gain/(Loss) on foreign exchange 117,313 (271,947) 24,515 (26,395)
Loss from operations (1,920,265) (1,077,786) (738,535) (251,970)
Finance income 31,803 9,961 9,928 2,513
Finance costs (215,283) (175,304) (74,961) (58,360)
-------------------------------------------------------- ------ ------------ ------------ ------------ ----------
Loss before taxation (2,103,745) (1,243,129) (803,568) (307,817)
Taxation - - - -
-------------------------------------------------------- ------ ------------ ------------ ------------ ----------
Loss for the year from continuing operations (2,103,745) (1,243,129) (803,568) (307,817)
======================================================== ====== ============ ============ ============ ==========
Other comprehensive income
Items that may be reclassified subsequently to profit
or loss
Change in value of available for sale financial assets - - - -
Currency translation differences on translating foreign
operations (4,935,406) (1,796,142) (880,193) 400,455
-------------------------------------------------------- ------ ------------ ------------ ------------ ----------
Other comprehensive income for the period, net of tax (4,935,406) (1,796,142) (880,193) 400,455
-------------------------------------------------------- ------ ------------ ------------ ------------ ----------
Total comprehensive income for the period
attributable to equity holders of the Company (7,039,151) (3,039,271) (1,683,762) 92,638
-------------------------------------------------------- ------ ------------ ------------ ------------ ----------
Earnings per share from continuing operations
attributable to the equity holders of the Company
Basic and diluted (pence per share) 9 (0.147) (0.106) (0.056) (0.026)
Condensed consolidated statement of financial position
30 September 31 December
2018 2017
Unaudited Audited
------------------------------ ------ ------------- -------------
Notes GBP GBP
------------------------------ ------ ------------- -------------
Assets
Non-current assets
Intangible assets 6 32,567,204 34,308,278
Property, plant & equipment 1,271 2,051
32,568,475 34,310,329
------------------------------ ------ ------------- -------------
Current assets
Trade and other receivables 127,948 153,105
Cash and cash equivalents 7,938,804 9,403,825
------------------------------ ------ ------------- -------------
8,066,752 9,556,930
------------------------------ ------ ------------- -------------
Total assets 40,635,227 43,867,259
============================== ====== ============= =============
Equity and liabilities
Equity attributable to
owners of the parent
Issued capital 7 14,325,218 13,719,343
Share premium 7 41,664,018 40,422,258
Other reserves (3,947,391) 988,015
Accumulated losses (17,358,324) (15,887,801)
------------------------------ ------ ------------- -------------
Total equity 34,683,521 39,241,815
------------------------------ ------ ------------- -------------
Liabilities
Non-current liabilities
Contingent consideration 5,261,237 3,635,955
Deferred tax liabilities 214,874 253,205
------------------------------ ------ ------------- -------------
5,476,111 3,889,160
------------------------------ ------ ------------- -------------
Current liabilities
Trade and other payables 475,595 736,284
------------------------------ ------ ------------- -------------
Total liabilities 5,951,706 4,625,444
------------------------------ ------ ------------- -------------
Total equity and liabilities 40,635,227 43,867,259
============================== ====== ============= =============
Condensed statement of changes in shareholders' equity
Attributable to the owners of the parent
-------------------------------------------------------------------
Share Share Accumulated Other
capital premium losses reserves Total
GBP GBP GBP GBP GBP
---------------------- ----------- ----------- ------------- ------------ ------------
As at 1 January
2017 11,719,343 35,767,344 (14,899,297) 4,467,064 37,054,454
---------------------- ----------- ----------- ------------- ------------ ------------
Comprehensive
income
Loss for the
period - - (1,243,129) - (1,243,129)
Other comprehensive
income
Impairment of - - - - -
available for
sale assets
Currency translation
differences - - - (1,796,142) (1,796,142)
---------------------- ----------- ----------- ------------- ------------ ------------
Total comprehensive
income - - (1,243,129) (1,796,142) (3,039,271)
---------------------- ----------- ----------- ------------- ------------ ------------
Transactions
with owners
---------------------- ----------- ----------- ------------- ------------ ------------
Share based
payments - (19,432) 101,931 - 82,499
Issue of shares - - - - -
Share issue - - - - -
costs
---------------------- ----------- ----------- ------------- ------------ ------------
Total transactions
with owners - (19,432) 101,931 - 82,499
As at 30 September
2017 (unaudited) 11,719,343 35,747,912 (16,040,495) 2,670,922 34,097,682
====================== =========== =========== ============= ============ ============
Attributable to the owners of the parent
-------------------------------------------------------------------
Share Share Accumulated Other
capital premium losses reserves Total
GBP GBP GBP GBP GBP
---------------------- ----------- ----------- ------------- ------------ ------------
As at 1 January
2018 13,719,343 40,422,258 (15,887,801) 988,015 39,241,815
---------------------- ----------- ----------- ------------- ------------ ------------
Comprehensive
income
Loss for the
period - - (2,103,745) - (2,103,745)
Other comprehensive
income
Impairment of - - - -
available for
sale assets
Currency translation - - - (4,935,406 -
differences
---------------------- ----------- ----------- ------------- ------------ ------------
Total comprehensive
income - - (2,103,745) (4,935,406) (7,039,151)
---------------------- ----------- ----------- ------------- ------------ ------------
Transactions
with owners
---------------------- ----------- ----------- ------------- ------------ ------------
Share based
payments - - 633,222 - 633,222
Issue of shares 605,875 1,451,724 - - 2,057,599
Share issue
costs - (209,964) - - (209,964)
---------------------- ----------- ----------- ------------- ------------ ------------
Total transactions
with owners 605,875 1,241,760 633,222 2,480,857
As at 30 September
2018 (unaudited) 14,325,218 41,664,018 (17,358,324) (3,947,391) 34,683,521
====================== =========== =========== ============= ============ ============
Condensed Consolidated Statement of Cash Flows
9 months ended 3 months ended
30 September 30 September
----------------------------------------------------- -------------------------- --------------------------
2018 2017 2018 2017
----------------------------------------------------- ------------ ------------ ------------ ------------
Unaudited Unaudited Unaudited Unaudited
----------------------------------------------------- ------------ ------------ ------------ ------------
GBP GBP GBP GBP
Cash flows from operating activities
Loss before taxation (2,103,745) (1,243,129) (803,568) (307,817)
Interest income (31,803) (9,961) (9,928) (2,513)
Finance costs 215,283 175,304 74,961 58,360
Exchange differences (117,313) 271,947 (24,515) 26,395
Employee share options charge 633,222 101,931 338,516 23,121
Change in fair value of contingent consideration 265,378 (255,342) 70,904 (102,248)
Depreciation - 283 - 50
------------------------------------------------------ ------------ ------------ ------------ ------------
Operating loss before changes in working capital (1,138,978) (958,967) (353,630) (304,652)
Decrease/(increase) in trade and other receivables 7,546 (38,274) 50,345 (37,481)
(Decrease)/increase in trade and other payables (298,911) (233,445) (1,841) 18,704
------------------------------------------------------ ------------ ------------ ------------ ------------
Net cash outflow from operating activities (1,430,343) (1,230,686) (305,126) (323,429)
====================================================== ============ ============ ============ ============
Cash flows from investing activities
Purchase of intangible assets (2,049,038) (3,780,932) (763,698) (1,283,008)
Proceeds from sale of property, plant and equipment - - - -
Interest received 31,803 9,961 9,928 2,513
------------------------------------------------------ ------------ ------------ ------------ ------------
Net cash used in investing activities (2,017,235) (3,770,971) (753,770) (1,280,495)
------------------------------------------------------ ------------ ------------ ------------ ------------
Cash flows from financing activities
Issue of shares 2,057,599 - - -
Share issue costs (209,965) (19,432) - -
------------------------------------------------------ ------------ ------------ ------------ ------------
Net cash used in financing activities 1,847,634 (19,432) - -
------------------------------------------------------ ------------ ------------ ------------ ------------
Net decrease in cash and cash equivalents (1,599,944) (5,021,089) (1,058,896) (1,603,924)
Cash and cash equivalents at beginning of period 9,403,825 9,317,781 8,969,672 5,655,064
Exchange gain/(loss) on cash and cash equivalents 134,923 (271,947) 28,027 (26,395)
------------------------------------------------------ ------------ ------------ ------------ ------------
Cash and cash equivalents at end of the period 7,938,804 4,024,745 7,938,804 4,024,745
====================================================== ============ ============ ============ ============
Notes to the Financial Statements
1. General information
The principal activity of the Company and its subsidiaries
(together 'the Group') is the exploration and development of
precious and base metals. There is no seasonality or cyclicality of
the Group's operations.
The Company's shares are listed on the Alternative Investment
Market of the London Stock Exchange (AIM) and on the Toronto Stock
Exchange (TSX). The Company is incorporated and domiciled in the
United Kingdom. The address of its registered office is Rex House,
4-12 Regent Street, London SW1Y 4RG.
2. Basis of preparation
The condensed consolidated interim financial statements have
been prepared using accounting policies consistent with
International Financial Reporting Standards and in accordance with
International Accounting Standard 34 Interim Financial Reporting.
The condensed interim financial statements should be read in
conjunction with the annual financial statements for the year ended
31 December 2016, which have been prepared in accordance with
International Financial Reporting Standards (IFRS) as adopted by
the European Union.
The condensed consolidated interim financial statements set out
above do not constitute statutory accounts within the meaning of
the Companies Act 2006. They have been prepared on a going concern
basis in accordance with the recognition and measurement criteria
of International Financial Reporting Standards (IFRS) as adopted by
the European Union. Statutory financial statements for the year
ended 31 December 2017 were approved by the Board of Directors on
26 March 2018 and delivered to the Registrar of Companies. The
report of the auditors on those financial statements was
unqualified.
The condensed consolidated interim financial statements of the
Company have not been audited or reviewed by the Company's auditor,
BDO LLP.
Going concern
The Directors, having made appropriate enquiries, consider that
adequate resources exist for the Group to continue in operational
existence for the foreseeable future and that, therefore, it is
appropriate to adopt the going concern basis in preparing the
condensed consolidated interim financial statements for the period
ended 30 September 2018.
Risks and uncertainties
The Board continuously assesses and monitors the key risks of
the business. The key risks that could affect the Group's medium
term performance and the factors that mitigate those risks have not
substantially changed from those set out in the Group's 2016 Annual
Report and Financial Statements, a copy of which is available on
the Group's website: www.horizonteminerals.com and on Sedar:
www.sedar.com The key financial risks are liquidity risk, foreign
exchange risk, credit risk, price risk and interest rate risk.
Critical accounting estimates
The preparation of condensed consolidated interim 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 end of the
reporting period. Significant items subject to such estimates are
set out in note 4 of the Group's 2017 Annual Report and Financial
Statements. The nature and amounts of such estimates have not
changed significantly during the interim period.
3. Significant accounting policies
The condensed consolidated interim financial statements have
been prepared under the historical cost convention as modified by
the revaluation of certain of the subsidiaries' assets and
liabilities to fair value for consolidation purposes.
The same accounting policies, presentation and methods of
computation have been followed in these condensed consolidated
interim financial statements as were applied in the preparation of
the Group's Financial Statements for the year ended 31 December
2017.
4 Segmental reporting
The Group operates principally in the UK and Brazil, with
operations managed on a project by project basis within each
geographical area. Activities in the UK are mainly administrative
in nature whilst the activities in Brazil relate to exploration and
evaluation work. The reports used by the chief operating decision
maker are based on these geographical segments.
2018 UK Brazil Total
9 months ended 9 months ended 9 months ended
30 September 30 September 30 September
2018 2018 2018
GBP GBP GBP
-------------------------------- --------------- --------------- ---------------
Revenue - - -
-------------------------------- --------------- --------------- ---------------
Administrative expenses (855,593) (283,385) (1,138,978)
Profit on foreign exchange 172,926 (55,613) 117,313
(Loss) from operations per
reportable segment (682,667) (338,998) (1,021,665)
Inter segment revenues - - -
Depreciation charges - - -
Additions and foreign exchange
movements to non-current
assets - (1,703,069) (1,703,069)
Reportable segment assets 7,132,617 33,502,609 40,635,227
Reportable segment liabilities 5,346,237 605,469 5,951,706
2017 UK Brazil Total
9 months ended 9 months ended 9 months ended
30 September 30 September 30 September
2017 2017 2017
GBP GBP GBP
-------------------------------- --------------- --------------- ---------------
Revenue - - -
-------------------------------- --------------- --------------- ---------------
Administrative expenses (601,315) (357,935) (959,250)
(Loss) on foreign exchange (249,816) (22,131) (271,947)
(Loss) from operations
per reportable segment (851,132) (380,066) (1,231,197)
Inter segment revenues
Depreciation charges (283) - (283)
Additions and foreign exchange
movements to non-current
assets - 2,045,281 2,045,281
Reportable segment assets 4,021,401 34,124,786 38,146,187
Reportable segment liabilities 3,643,226 405,279 4,048,505
2018 UK Brazil Total
3 months 3 months 3 months
ended ended ended
30 September 30 September 30 September
2018 2018 2018
GBP GBP GBP
-------------------------------- -------------- -------------- --------------
Revenue - - -
-------------------------------- -------------- -------------- --------------
Administrative expenses (260,493) (93,137) (353,630)
Profit on foreign exchange 38,856 (14,341) 24,515
(Loss) from operations per (221,637) (107,478) (329,115)
reportable segment
-------------------------------- -------------- -------------- --------------
Inter segment revenues - - -
Depreciation charges - - -
Additions and foreign exchange
movements to non-current
assets - (74,209) (74,209)
2017 UK Brazil Total
3 months 3 months 3 months
ended ended ended
30 September 30 September 30 September
2017 2017 2017
GBP GBP GBP
---------------------------------- -------------- -------------- --------------
Revenue - - -
---------------------------------- -------------- -------------- --------------
Administrative expenses (176,401) (128,300) (304,702)
(Loss) on foreign exchange (25,176) (1,219) (26,395)
(Loss) from operations per (201,577) (129,520) (331,097)
reportable segment
---------------------------------- -------------- -------------- --------------
Inter segment revenues - - -
Depreciation charges (50) - (50)
Additions and foreign exchange
movements to non-current assets - 1,526,005 1,526,005
A reconciliation of adjusted loss from operations per reportable
segment to loss before tax is provided as follows:
9 months 9 months 3 months 3 months
ended ended ended ended
30 September 30 September 30 September 30 September
2018 2017 2018 2017
GBP GBP GBP GBP
------------------------------ -------------- -------------- -------------- --------------
Loss from operations per
reportable segment (1,021,665) (1,231,197) (329,115) (331,097)
- Change in fair value
of contingent consideration (265,378) 255,342 (70,904) 102,248
- Charge for share options
granted (633,222) (101,931) (338,516) (23,121)
- Impairment of available
for sale asset - - - -
- Finance income 31,803 9,961 9,928 2,513
- Finance costs (215,283) (175,304) (74,961) (58,360)
Loss for the period from
continuing operations (2,103,745) (1,243,129) (803,568) (307,817)
================================ ============== ============== ============== ==============
5 Change in Fair Value of Contingent Consideration
Contingent Consideration payable to Xstrata Brasil Mineração
Ltda.
The contingent consideration payable to Xstrata Brasil Mineração
Ltda has a carrying value of GBP3,950,609 at 30 September 2018
(2017: GBP3,423,333). It comprises two elements: US$1,000,000 due
after the date of issuance of a joint feasibility study for the
combined Enlarged Project areas and to be satisfied by shares or
cash, together with US$5,000,000 consideration in cash as at the
date of first commercial production from any of the resource areas
within the Enlarged Project area. The key assumptions underlying
the treatment of the contingent consideration the US$5,000,000 are
as per those applied to the contingent consideration payable to the
former owners of Teck Cominco Brasil S.A.
As at 30 September 2018, there was a finance expense of
GBP150,967 (2017: GBP167,729) recognised in finance costs within
the Statement of Comprehensive Income in respect of this contingent
consideration arrangement, as the discount applied to the
contingent consideration at the date of acquisition was
unwound.
The change in the fair value of contingent consideration payable
to Xstrata Brasil Mineração Ltda generated a charge to profit or
loss of GBP166,203 for the nine months ended 30 September 2017
(2017: GBP239,914 credit) due to changes in the functional currency
in which the liability is payable.
6 Intangible assets
Intangible assets comprise exploration and evaluation costs and
goodwill. Exploration and evaluation costs comprise internally
generated and acquired assets.
Group Exploration
and
Goodwill Exploration evaluation Total
licences costs
GBP GBP GBP GBP
--------------------------------- --------- ------------ ------------ ------------
Cost
At 1 January 2018 251,063 5,165,529 28,891,686 34,308,278
Additions - 1,144,621 2,087,756 3,232,377
Exchange rate movements (38,006) (533,098) (4,402,347) (4,973,451)
Net book amount at 30 September
2018 213,057 5,777,052 26,577,095 32,567,204
================================= ========= ============ ============ ============
7 Share Capital and Share Premium
Issued and fully Ordinary
paid Number of shares Share premium Total
shares GBP GBP GBP
---------------------- -------------- ----------- -------------- -----------
At 1 January 2018 1,371,934,300 13,719,343 40,422,258 54,141,601
Issued during period 60,587,500 605,875 1,241,760 1,847,635
At 30 September 2018 1,432,521,800 14,325,218 41,664,018 55,989,236
---------------------- -------------- ----------- -------------- -----------
8 Dividends
No dividend has been declared or paid by the Company during the
nine months ended 30 September 2018 (2017: nil).
9 Earnings per share
The calculation of the basic loss per share of 0.147 pence for
the 9 months ended 30 September 2018 (30 September 2017 loss per
share: 0.106 pence) is based on the loss attributable to the equity
holders of the Company of GBP (2,103,745) for the nine month period
ended 30 September 2018 (30 September 2017: GBP(1,243,129)) divided
by the weighted average number of shares in issue during the period
of 1,430,524,410 (weighted average number of shares for the 9
months ended 30 Sept 2017: 1,171,934,300).
The calculation of the basic loss per share of 0.056 pence for
the 3 months ended 30 September 2018 (30 September 2017 loss per
share: 0.026 pence) is based on the loss attributable to the equity
holders of the Company of GBP (803,568) for the three month period
ended 30 September 2018 (3 months ended 30 September 2017: GBP
307,817) divided by the weighted average number of shares in issue
during the period of 1,432,521,800 (weighted average number of
shares for the 3 months ended 30 September 2017:
1,171,934,300).
The basic and diluted loss per share is the same, as the effect
of the exercise of share options would be to decrease the loss per
share.
Details of share options that could potentially dilute earnings
per share in future periods are disclosed in the notes to the
Group's Annual Report and Financial Statements for the year ended
31 December 2017 and in note 10 below.
10 Issue of Share Options
On 30 May 2018, the Company awarded 38,150,000 share options to
Directors and senior management. All of these share options have an
exercise price of 4.80 pence. One third of the options are
exercisable from 30 November 2018, one third from 31 May 2018 and
one third from 30 November 2019.
On 30 May 2018, the Company awarded 1,500,000 share options to a
consultant to the Company under the terms of the prior year's
scheme. These options are exercisable immediately.
On 31 March 2017, the Company awarded 41,000,000 share options
to Directors and senior management. All of the share options have
an exercise price of 3.20 pence. One third of the options are
exercisable from 30 September 2017, one third from 31 March 2018
and one third from 30 September 2018.
11 Ultimate controlling party
The Directors believe there to be no ultimate controlling
party.
12 Related party transactions
The nature of related party transactions of the Group has not
changed from those described in the Group's Annual Report and
Financial Statements for the year ended 31 December 2017.
13 Events after the reporting period
There are no events which have occurred after the reporting
period which would be material to the financial statements.
Approval of interim financial statements
These Condensed Consolidated Interim Financial Statements were
approved by the Board of Directors on 7 November 2018.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
QRTLLFERLELAIIT
(END) Dow Jones Newswires
November 12, 2018 02:00 ET (07:00 GMT)
Horizonte Minerals (LSE:HZM)
Historical Stock Chart
From Mar 2024 to Apr 2024
Horizonte Minerals (LSE:HZM)
Historical Stock Chart
From Apr 2023 to Apr 2024