TIDMLIFE
RNS Number : 7196C
Life Science Developments Limited
30 June 2016
For immediate release 7.00am 30 June 2016
Life Science Developments Limited
("LIFE" or "the Group")
Annual Report and Financial Statements for the year ended 31
December 2015
Life Science Developments Limited, the biotechnology and life
sciences group, today announces its audited results and the
publication of its 2015 Report and Accounts ("Accounts") for the
year ended 31 December 2015, extracts from which are set out
below.
The Accounts are being posted to shareholders and will be
available on the Group's website
www.lifesciencedevelopments.com.
Financial and operational highlights
-- On 10 February 2015, the Company relinquished its interest in
the Basay Project on Negros Island in the Philippines by selling
for a nominal price its 70% holding in Basay Copper Limited, a BVI
company, to Solfotara Mining Holdings (BVI) Limited, its joint
venture partner in that company.
The joint venture agreement with Solfotara Mining Holdings (BVI)
Limited required the Company relinquish a 45% interest in Basay on
8 April 2015 if a pre-feasibility study on the project had not been
completed. By relinquishing the full 70% holding, the Company has
no further costs in maintaining the Basay property on a care and
maintenance basis or any future liability that could arise
therefrom.
-- Following the General Meeting held on the 5 October 2015 the
Company completed the sale of its interest in the Hinoba-an Copper
Project in the Philippines for a consideration of US$500,000.
Together with the earlier release of the Basay Project, the
Hinoba-an disposal constituted a fundamental change of business,
and the Company's assets are now principally its cash and loan
receivable balances of US$1.325 million.
At the same meeting the Company received approval to change its
name to Life Science Developments Limited and adopt a new
investment policy that involves seeking to invest in or acquire
companies within the biotechnology, life sciences and related
sectors and the appointment of Jim Mellon to the Board as a
non-executive Director. As a result of the above changes to the
Company, a new corporate website was created as follows:
http://lifesciencedevelopments.com/.
-- The Company recognised an unrealised loss on investment in
Crazy Horse Resources Inc. of US$14,208 during the year. The total
market value of this investment therefore decreased from US$32,208
to US$18,000.
-- All existing options and warrants expired during the year and
there were no new options or warrants issued.
-- Cash reserves decreased during the year due to operational
costs which purely relate to the care and maintenance cost of the
two Philippine projects up to the date of disposal as well as
corporate salary and administration costs, all of which have been
cut down to a bare minimum.
-- Total number of shares in issue as at 31 December 2015 was
37,501,033. No new shares were issued during the year.
-- Loss per share at 31 December 2015 is 14.56 cents (31 December 2014: 42.20 cents).
-Ends-
For further information:
Life Science Developments Tel: 01624 639396
Mitch Alland - Chairman / Denham Eke - CFO
Beaumont Cornish Limited Tel: 020 7628 3396
Roland Cornish/James Biddle
Chairman's statement
Dear Shareholders,
In 2015 the Company exited the copper sector because our cash
resources, even under our minimum expense care and maintenance
regime, were only enough to last two or three years. That was
unlikely to be long enough to assure a more attractive sale of our
copper project in the light of the continued poor market prospects
for copper. Accordingly, in October we sold our interest in the
Hinoba-an Copper Project in the Philippines, following our February
release of the Basay Project. In contrast to the prospects for
copper, we believe the opportunities in the life science sector
will offer prospects for maximizing value for our shareholders.
The General Meeting of 5 October 2015 approved the Hinoba-an
sale and adopted a new investment policy that involves seeking to
invest in or to acquire companies within the biotechnology, life
sciences and related sectors. The shareholders also approved
changing the name of the Company from Copper Development
Corporation to Life Science Developments Ltd. The Company appointed
Jim Mellon to the Board as a non-executive director to provide
guidance on our new path of biotech investments. Jim has not only
been highly successful in pioneering ventures in biotech and life
sciences, but is also well known as a knowledgeable and effective
entrepreneur and as an author of widely read books on
investment.
We are currently working together with Jim Mellon to consider
various options for investment in the life sciences sector. We
anticipate that the Company's cash and loan receivable balance of
US$1.325 million will provide the necessary working capital for
day-to-day business and for the due diligence in connection with
any investments and / or acquisitions currently being considered,
in accordance with the new investment policy.
Mitchell Alland
Executive Chairman
29 June 2016
Directors' report
The Directors present their annual report and the consolidated
financial statements for Life Science Developments Limited (the
Company) for the year ended 31 December 2015.
Principal activity
The Group was initially formed to engage in the exploration,
development, mining and processing of minerals, petroleum and other
mineral oils. At a General Meeting held on the 5 October 2015 a
resolution was passed to dispose of the Company's remaining mining
interests and to change its name to Life Science Developments
Limited. The Company has subsequently adopted a new investment
policy that involves seeking to invest in or acquire companies
within the biotechnology, life sciences and related sectors.
Results and transfers to reserves
The results and transfers to reserves for the year are set out
in the financial statements.
The Group made a total comprehensive loss attributable to equity
shareholders for the year after taxation of US$5,357,510 (2014:
US$15,831,321).
Dividend
The Directors do not propose the payment of a dividend for the
year (2014: US$nil).
Directors
The Directors who served during the year and to date are:
Appointed
Denham Eke
Mitchell Alland
James Mellon 5 October
2015
By order of the Board
Denham Eke
Secretary Craigmuir Chambers
Road Town
29 June 2016 Tortola
British Virgin Islands
Statement of Directors' responsibilities in respect of the
Directors' report and the financial statements
The Directors are responsible for preparing the Directors'
Report and the financial statements in accordance with applicable
law and regulations. In addition, the Directors have elected to
prepare the Consolidated financial statements in accordance with
International Financial Reporting Standards, as adopted by the
EU.
The financial statements are required to give a true and fair
view of the state of affairs of the Group and of the profit or loss
of the Group for that year.
In preparing these financial statements, the Directors are
required to:
-- select suitable accounting policies and then apply them consistently;
-- make judgements and estimates that are reasonable and prudent;
-- state whether applicable International Financial Reporting
Standards, as adopted by the EU, have been followed, subject to any
material departures disclosed and explained in the financial
statements; and
-- prepare the financial statements on the going concern basis
unless it is inappropriate to presume that the Group will continue
in business.
The Directors are responsible for keeping proper accounting
records that disclose with reasonable accuracy at any time the
financial position of the Group and to allow for the preparation of
financial statements. They have general responsibility for taking
such steps as are reasonably open to them to safeguard the assets
of the Group and to prevent and detect fraud and other
irregularities.
The Directors are responsible for the maintenance and integrity
of the corporate and financial information included on the Group's
website. Legislation governing the preparation and dissemination of
financial statements may differ from one jurisdiction to
another.
Report of the Independent Auditors, KPMG Audit LLC, to the
members of
Life Science Developments Limited
We have audited the financial statements of Life Science
Developments Limited (the Company) for the year ended 31 December
2015 which comprise the Consolidated Statement of Comprehensive
Income, the Consolidated Statement of Financial Position, the
Consolidated Statement of Cash Flows, the Consolidated Statement of
Changes in Equity and the related notes. The financial reporting
framework that has been applied in their preparation is applicable
law and International Financial Reporting Standards (IFRSs), as
adopted by the EU.
This report is made solely to the Company's members, as a body.
Our audit work has been undertaken so that we might state to the
Company's members those matters we are required to state to them in
an auditor's report and for no other purpose. To the fullest extent
permitted by law, we do not accept or assume responsibility to
anyone other than the Company and the Company's members as a body,
for our audit work, for this report, or for the opinions we have
formed.
Respective responsibilities of Directors and Auditor
As explained more fully in the Directors' Responsibilities
Statement, the Directors are responsible for the preparation of
financial statements that give a true and fair view. Our
responsibility is to audit, and express an opinion on, the
financial statements in accordance with applicable law and
International Standards on Auditing (UK and Ireland). Those
standards require us to comply with the Auditing Practices Board's
(APB's) Ethical Standards for Auditors.
Scope of the audit of the financial statements
An audit involves obtaining evidence about the amounts and
disclosures in the financial statements sufficient to give
reasonable assurance that the financial statements are free from
material misstatement, whether caused by fraud or error. This
includes an assessment of: whether the accounting policies are
appropriate to the Company's circumstances and have been
consistently applied and adequately disclosed; the reasonableness
of significant accounting estimates made by the Directors; and the
overall presentation of the financial statements. In addition, we
read all the financial and non-financial information in the
Director's report, Chairman's Statement and financial and
operational highlights and consolidated financial statements to
identify material inconsistencies with the audited financial
statements and to identify any information that is apparently
materially incorrect based on, or materially inconsistent with, the
knowledge acquired by us in the course of performing the audit. If
we become aware of any apparent material misstatements or
inconsistencies we consider the implications for our report.
Opinion on the financial statements
In our opinion the financial statements:
-- give a true and fair view of the state of the Group's affairs
as at 31 December 2015 and of its loss for the year then ended;
and
-- have been properly prepared in accordance with IFRSs, as adopted by the EU.
KPMG Audit LLC
Chartered Accountants
Heritage Court
41 Athol Street
Douglas
Isle of Man IM99 1HN
29 June 2016
Consolidated statement of comprehensive income
for the year ended 31 December 2015
Notes Restated
(see Note
6)
Year ended Year ended
31 December 31 December
2015 2014
US$ US$
Continuing operations
Unrealised loss
on investment 12 (14,208) (108,605)
Operating expenses
Directors' fees 4,17 (163,058) (179,294)
Consultants' fees (9,000) (9,000)
Salaries and wages (3,655) (4,209)
Other professional
fees (230,287) (271,734)
Travel and entertainment (182) (105)
Administration
expenses (115,720) (122,378)
Share option charge 15 - (3,918)
Foreign exchange
losses (44,090) (57,185)
Deed payments 6 - (6,887)
---------------- ----------------
Loss before finance
income 4 (580,200) (763,315)
Finance income 38,798 42,585
---------------- ----------------
Loss before income
tax (541,402) (720,730)
Income tax expense 5 - -
---------------- ----------------
Loss from continuing
operations (541,402) (720,730)
Discontinued operations
Loss from discontinued
operations 6 (4,920,489) (16,171,039)
---------------- ----------------
Loss for the year (5,461,891) (16,891,769)
Other comprehensive
income/(loss) -
foreign currency
translation reserve 104,381 (26)
---------------- ----------------
Total comprehensive loss
for the year (5,357,510) (16,891,795)
Loss attributable
to:
Non-controlling
interests - (1,066,352)
Equity shareholders (5,461,891) (15,825,417)
---------------- ----------------
(5,461,891) (16,891,769)
Total comprehensive loss
attributable to:
Non-controlling
interests - (1,060,474)
Equity shareholders (5,357,510) (15,831,321)
---------------- ----------------
(5,357,510) (16,891,795)
Basic and diluted loss
per share - all operations 19 (0.1456) (0.4220)
Basic and diluted loss
per share - continuing
operations 19 (0.0144) (0.0192)
Consolidated statement of financial position
as at 31 December 2015
Notes At At
31 December 31 December
2015 2014
US$ US$
Assets
Investment in Crazy
Horse Resources 12 18,000 32,208
-------------- --------------
Total non-current assets 18,000 32,208
-------------- --------------
Current assets
Cash and cash equivalents 584,816 586,786
Loan receivable 11 740,105 776,600
Trade and other receivables 9 43,552 111,686
-------------- --------------
Total current assets 1,368,473 1,475,072
-------------- --------------
Total assets 1,386,473 1,507,280
Equity
Share premium 13 62,147,849 62,147,849
Share option reserves 15 - 1,294,823
Warrants 14 - 1,195,694
Foreign currency translation
reserve - (104,381)
Retained deficit (60,805,883) (57,834,509)
-------------- --------------
Shareholders' equity 1,341,966 6,699,476
Non-controlling interest - (5,241,395)
-------------- --------------
Total equity 1,341,966 1,458,081
-------------- --------------
Non-current liabilities
Deferred tax liability 5 - 44
-------------- --------------
Total non-current liabilities - 44
-------------- --------------
Current liabilities
Trade and other payables 10 44,507 49,155
-------------- --------------
Total liabilities 44,507 49,199
-------------- --------------
Total equity and liabilities 1,386,473 1,507,280
These financial statements were approved by the Board of
Directors on 29 June 2016 and were signed on their behalf by:
Mitchell Alland Denham Eke
Director Director
Consolidated statement of changes in equity
for the year ended 31 December 2015
Foreign Total
currency attributable Non
Notes Share Share exchange Retained to -controlling
premium Warrants options reserves deficit shareholders interest Total
US$ US$ US$ US$ US$ US$ US$ US$
Balance at 1
January
2015 62,147,849 1,195,694 1,294,823 (104,381) (57,834,509) 6,699,476 (5,241,395) 1,458,081
Total
comprehensive
loss for the
year
Loss for the
year - - - - (5,461,891) (5,461,891) - (5,461,891)
Other
comprehensive
income for the
year - - - 104,381 - 104,381 - 104,381
Transactions
with
owners of the
Company
Share options
/ warrants
expired 15 - (1,195,694) (1,294,823) - 2,490,517 - - -
Changes in
ownership
interest
Disposal of
subsidiary
with
non-controlling
interest - - - - - - 5,241,395 5,241,395
------------ ------------ ------------ ------------ -------------- ------------ ------------ ------------
Balance at 31
December 2015 62,147,849 - - - (60,805,883) 1,341,966 - 1,341,966
Foreign Total
currency attributable Non
Share Share exchange Retained to -controlling
premium Warrants options reserves deficit shareholders interest Total
US$ US$ US$ US$ US$ US$ US$ US$
Balance at 1
January
2014 62,147,849 1,195,694 1,290,905 (98,477) (42,009,092) 22,526,879 (4,180,921) 18,345,958
Total
comprehensive
loss for the
year
Loss for the
year - - - - (15,825,417) (15,825,417) (1,066,352) (16,891,769)
Other
comprehensive
loss for the
year - - - (5,904) - (5,904) 5,878 (26)
Transactions
with
owners of the
Company
Share options
charge 15 - - 3,918 - - 3,918 - 3,918
------------ ------------ ------------ ------------ -------------- ------------ ------------ ------------
Balance at 31
December 2014 62,147,849 1,195,694 1,294,823 (104,381) (57,834,509) 6,699,476 (5,241,395) 1,458,081
Consolidated statement of cash flows
for the year ended 31 December 2015
Year ended Year ended
31 December 31 December
Notes 2015 2014
US$ US$
Cash flows from operating
activities
Loss before income tax (5,461,891) (16,891,769)
Adjusted for non-cash
and non-operating items:
Share option charge 15 - 3,918
Unrealised loss on investment 12 14,208 108,605
Impairment losses 20 - 16,072,099
Loss on sale of discontinued
operations 6 4,920,489 -
Finance income (38,798) (42,585)
-------------- --------------
(565,992) (749,732)
Change in trade and other
receivables (11,736) 49,655
Change in trade and other
payables 465 (48,472)
-------------- --------------
Net cash used in operating
activities (577,263) (748,549)
Cash flows from investing
activities
Proceeds from the disposal
of Hinoba-an investment 6 500,000 -
-------------- --------------
500,000 -
Cash flows from financing
activities
Interest received 38,798 42,585
Unrealised foreign exchange
gain 36,495 49,318
-------------- --------------
Net cash generated from
financing activities 75,293 91,903
-------------- --------------
Decrease in cash and cash
equivalents (1,970) (656,646)
Cash and cash equivalents
at beginning of year 586,786 1,243,432
-------------- --------------
Cash and cash equivalents
at end of year 584,816 586,786
Notes
forming part of the financial statements for the year ended 31
December 2015
1 Reporting Entity
Life Science Developments Limited (formerly Copper Development
Corporation Limited) is a company domiciled in the British Virgin
Islands. The address of the Company's registered office is
Craigmuir Chambers, Road Town, Tortola, British Virgin Islands. The
consolidated financial statements of the Company as at and for the
year ended 31 December 2015 comprise the Company and its
subsidiaries (together referred to as the Group and individually as
Group entities) to 5 October 2015 following which the sale of
Hinoba-an, the Group's only remaining operating asset, was
completed and thereafter for the Company alone.
The Company will seek to invest in and/or acquire companies
within bio-technology, life sciences and related technologies. The
Company's shares are traded on the AIM market (AIM) of the London
Stock Exchange (ticker code: LIFE).
2 Basis of preparation
(a) Statement of compliance
The consolidated financial statements have been prepared in
accordance with International Financial Reporting Standards
(IFRSs), as adopted by the EU. The consolidated financial
statements were authorised for issue by the Board of Directors on
29 June 2016.
(b) Basis of measurement
Functional and Presentation Currency
The consolidated financial statements of the Group are presented
in US Dollars (US$), which is the Group's functional currency. All
financial information presented in US Dollars has been rounded to
the nearest dollar.
Estimates
The preparation of the consolidated financial statements
requires management to make judgments, estimates and assumptions
that affect the application of accounting policies and the reported
amounts of assets, liabilities, income and expenses. Actual results
may differ from these estimates.
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 and in any future periods
affected. Significant estimates and assumptions include those
related to recoverability of mineral properties and determination
as to whether costs are expensed or deferred.
Going concern
The Company's ability to continue as a going concern is
dependent upon acquiring suitable investments in the biotechnology,
life science and related sectors. Although as at the period end,
there is sufficient cash balances to meet current obligations,
there can be no assurance the Company will be able to acquire
suitable investments or raise sufficient funds as and when funds
are required in order to complete its investment policy in
entirety. If acquisitions are not made and such funding is not
available, the Company may cease operations.
3 Significant accounting policies
The accounting policies set out below have been applied
consistently to all periods presented in these consolidated
financial statements, and have been applied consistently by Group
entities.
Basis of consolidation
The consolidated financial statements incorporate the financial
information of the Company and entities controlled by the Company
(its subsidiaries). The results of subsidiaries acquired during the
period are included in the consolidated statement of comprehensive
income from the date on which control is obtained.
Business combination
Acquisitions of subsidiaries and businesses are accounted for
using the purchase method. The cost of acquisition is measured at
the aggregate of the fair values (at the date of exchange) of
assets given, liabilities incurred or assumed, and equity
instruments issued by the Group in exchange for control of the
acquiree plus any costs directly attributable to the business
combination.
The acquiree's identifiable assets, liabilities and contingent
liabilities that meet the conditions for recognition under IFRS 3
are recognised at their fair value at the acquisition date, except
for non-current assets (or disposal groups) that are classified as
held for sale in accordance with IFRS 5 'Non-Current Assets Held
for Sale and Discontinued Operations', which are recognised and
measured at fair value less costs to sell.
Subsidiaries
Subsidiaries are entities controlled by the Group. The financial
statements of subsidiaries are included in the consolidated
financial statements from the date that control commences until the
date that control ceases. The accounting policies of subsidiaries
have been changed when necessary to align them with the policies
adopted by the Group.
Control is achieved where the Company has the power to govern
the financial and operating policies of an investee entity so as to
obtain benefits from its activities. In assessing control, the
impact of potential voting rights that currently are exercisable
should be considered. All potential voting rights are taken into
account, whether held by Group or by other parties. Such potential
voting rights may take many forms, including call options,
warrants, convertible shares and contractual arrangements to
acquire shares. Only those rights that either would give the entity
voting power or which would reduce another party's voting rights
are considered.
Loss of control
On the loss of control, the Group derecognises the assets and
liabilities of the subsidiary, any non-controlling interests and
the other components of equity related to the subsidiary. Any
surplus or deficit arising on the loss of control is recognised in
profit or loss. If the Group retains any interest in the previous
subsidiary, then such interest is measured at fair value at the
date the control is lost. Subsequently that retained interest is
accounted for as an equity-accounted investee or as an available
for sale financial asset depending on the level of influence
retained.
Non-controlling interest
Non-controlling interests in the net assets of consolidated
subsidiaries are identified separately from the Group's equity
therein. The interests of non-controlling shareholders may be
initially measured at fair value or at the non-controlling
interests' proportionate share of the acquiree's identifiable net
assets which are generally at fair value. Subsequent to
acquisition, the carrying amount of non-controlling interests is
adjusted for the non-controlling interests' share of subsequent
changes in equity. Total comprehensive income is attributed to
non-controlling interests even if this results in the
non-controlling interests having a deficit balance.
Transactions eliminated on consolidation
Intra-group balances and transactions, and any unrealised income
and expenses arising from intra-group transactions, are eliminated
in preparing the consolidated financial statements. Unrealised
gains arising from transactions with equity accounted investees are
eliminated against the investment to the extent of the Group's
interest in the investee. Unrealised losses are eliminated in the
same way as unrealised gains, but only to the extent that there is
no evidence of impairment.
Goodwill
Goodwill that arises upon the acquisition of subsidiaries is
included in intangible assets. The Group measures goodwill as the
excess of the sum of fair value of the consideration transferred,
the recognised amount of any non-controlling interest in the
acquiree and the fair value of the acquirer's previously held
equity interest (if any) in the entity over the net recognised
amount (generally at fair value) of the identifiable assets
acquired and liabilities assumed, all measured as of the
acquisition date. When the excess is negative, a bargain purchase
gain is recognised immediately in the consolidated statement of
comprehensive income.
Subsequent to initial recognition, goodwill and intangible
assets with indefinite useful lives are measured at cost, or in
some cases at revalued amount less accumulated impairment charges.
Goodwill and intangible assets with indefinite useful lives are not
amortised, but instead are subject to impairment testing at least
annually.
For the purpose of impairment testing, goodwill is allocated to
each of the Group's Cash Generating Units (CGUs) expected to
benefit from the synergies of the combination. CGUs to which
goodwill has been allocated are tested for impairment annually, or
more frequently when there is an indication that the unit may be
impaired. If the recoverable amount of the CGU is less than the
carrying amount of the unit, the impairment loss is allocated first
to reduce the carrying amount of any goodwill allocated to the unit
and then to the other assets of the unit pro rata on the basis of
the carrying amount of each asset in the unit. An impairment loss
recognised for goodwill is not reversed in a subsequent period.
Foreign currency transactions
Transactions in foreign currencies are translated into
functional currency based on the exchange rates prevailing at the
transaction dates. Foreign currency denominated monetary assets and
liabilities are translated into functional currency at the exchange
rate prevailing at the reporting date. Gains or losses arising from
foreign currency transactions are recognized in the consolidated
statement of comprehensive income.
Non-monetary assets and liabilities denominated in foreign
currencies that are measured at fair value are retranslated to the
functional currency at the exchange rate at the date that the fair
value was determined or if measured at historical cost are
translated using the exchange rate at the date of transaction.
The assets and liabilities of foreign operations are translated
to US Dollars at exchange rates at the reporting date while income
and expenses are translated at exchange rates at date of
transactions although if not practically available, the average
rate for the period is used.
Assets held for sale
Non-current assets, or disposal groups comprising assets and
liabilities, are classified as held-for-sale or
held-for-distribution if it is highly probable that they will be
recovered primarily through sale or distribution rather than
continuing use.
Immediately before classification as held-for-sale or
held-for-distribution, the assets, or components of a disposal
Group, are remeasured in accordance with the Group's accounting
policies. Thereafter, generally the assets, or disposal group, are
measured at the lower of their carrying amount and fair value les
cost to sell. Impairment losses on initial classification as
held-for-sale or held-for-distribution and subsequent gains and
losses on remeasurement are recognised in profit or loss. Gains are
not recognised in excess of any cumulative impairment loss. Once
classified as held-for-sale or held-for-distribution, assets are no
longer depreciated or amortised.
Deferred mine exploration costs
Exploration assets are initially recognised at cost and are
reassessed on a regular basis and these costs are carried forward
provided that at least one of the following conditions is met:
-- the period for which the entity has the right to explore in
the specific area has not expired during the period or will expire
in the near future, and is expected to be renewed;
-- substantive expenditure on further exploration for and
evaluation of mineral resources in the specific area is either
budgeted or planned;
-- such costs are expected to be recouped in full through
successful development and exploration of the area of interest or
alternatively, by its sale; or
-- exploration and evaluation activities in the area of interest
have not yet reached a stage which permits a reasonable assessment
of the existence or otherwise of economically recoverable reserves,
and active and significant operations in relation to the area are
continuing, or planned for the future.
Estimating Mineral Reserves and Resources
Mineral reserves and resources estimates for development
projects are, to a large extent, based on the interpretation of
geological data obtained from drill holes and other sampling
techniques and feasibility studies which derive estimates of costs
based upon anticipated tonnage and grades of ores to be mined and
processed, the configuration of the ore body, expected recovery
rates from the ore, estimated operating costs, estimated climatic
conditions and other factors. Proven reserve estimates are
attributed to future development projects only where there is a
significant commitment to project funding and execution for which
applicable governmental and regulatory approvals have been secured
or are reasonably certain to be secured. All proven reserve
estimates are subject to revision, either upward or downward, based
on new information, such as from block grading and production
activities or from changes in economic factors, including product
prices, contracts terms or development plans.
Estimates of reserves for undeveloped or partially developed
areas are subject to greater uncertainty over their future life
than estimates of reserves for areas that are substantially
developed and depleted. As an area goes into production, the amount
of proven reserves will be subject to future revision once
additional information becomes available. As those areas are
further developed, new information may lead to revisions.
Recoverability of Deferred Mine Exploration Costs
Mineral property acquisition costs are capitalised until the
viability of the mineral interest is determined. Expenditures for
mine exploration work prior to and subsequent to drilling are
deferred as incurred. These shall be written-off if the results of
the exploration work are determined to be negative. If the results
are positive, the deferred expenditures and the subsequent
development cost shall be capitalized, to the extent that they do
not exceed economically recoverable amount from mineral interests
and amortized from the start of commercial operations. The Group
reviews the carrying values of its deferred mine exploration costs
whenever events or changes in circumstances indicate that their
carrying values may exceed their estimated net recoverable amounts.
An impairment loss is recognised when the carrying value of those
assets is not recoverable and exceeds their fair value.
Mineral property expenses
Mineral property expenses are costs incurred that do not qualify
for capitalization and therefore expensed as incurred. These
include payments for property rights and leases such as royalties
and deed payments and exploration, evaluation and project
investigation expenditures incurred prior to determination that a
property has economically recoverable resources.
Impairment of tangible and intangible assets excluding
goodwill
At each reporting date, the Group reviews the carrying amounts
of its tangible and intangible assets to determine whether there is
any indication that those assets have suffered an impairment loss.
If any such indication exists, the recoverable amount of the asset
is estimated in order to determine the extent of the impairment
loss (if any). Where the asset does not generate cash flows that
are independent from other assets, the Group estimates the
recoverable amount of the CGU to which the asset belongs. An
intangible asset with an indefinite useful life is tested for
impairment annually and whenever there is an indication that the
asset may be impaired.
Recoverable amount is the higher of fair value less costs to
sell and value in use. In assessing value in use, the estimated
future cash flows are discounted to their present value using a
pre-tax discount rate that reflects current market assessments of
the time, value of money and the risks specific to the asset for
which the estimates of future cash flows have not been
adjusted.
If the recoverable amount of an asset (or CGU) is estimated to
be less than its carrying amount, the carrying amount of the asset
(CGU) is reduced to its recoverable amount. An impairment loss is
recognised as an expense immediately.
Where an impairment loss subsequently reverses, the carrying
amount of the asset (CGU) is increased to the revised estimate of
its recoverable amount but so that the increased carrying amount
does not exceed the carrying amount that would have been determined
had no impairment loss been recognised for the asset (CGU) in prior
years. A reversal of an impairment loss is recognised as income
immediately.
Financial instruments
Measurement
Financial instruments are initially measured at cost, which
includes transaction costs. Subsequent to initial recognition these
instruments are measured as set out below:
Trade and other receivables
Trade and other receivables are stated at amortised costs using
effective interest method less impairment losses.
Cash and cash equivalents
Cash and cash equivalents are measured at amortised costs and
are due on demand.
Financial liabilities
Non-derivative financial liabilities are recognised at amortised
costs using the effective interest method.
Finance income and finance costs
Finance income comprises interest income on funds invested.
Interest income is recognised as it accrues in profit or loss,
using the effective interest method.
Finance costs comprise interest expense on borrowings, unwinding
of the discount on provisions, changes in the fair value of
financial assets at fair value through profit or loss, impairment
losses recognised on financial assets, and losses on hedging
instruments that are recognised in profit or loss. Borrowing costs
that are not directly attributable to the acquisition, construction
or production of a qualifying asset are recognised in profit or
loss using the effective interest method.
Share premium
Ordinary shares are classified as equity. The ordinary shares of
the Company have a nil par value. As such all proceeds received for
the issue of shares has been credited to share premium. Proceeds
from the exercise of stock options or conversion of share purchase
warrants are recorded in share premium at the amount received on
exercise or conversion. Commissions paid to underwriters or agents
and other related share issue costs, such as legal, accounting and
printing, are charged to share premium.
Share based payments
The Company determines the fair value of warrants and options
issued and recognise the amount as an expense in the statement of
comprehensive income with a corresponding increase in equity.
New standards and interpretations not yet adopted
A number of new standards, amendments to standards and
interpretations are not yet effective for the year, and have not
been applied in preparing these consolidated historical financial
statements:
New/revised International Accounting Effective
Standards/International Financial Reporting date
Standards (IAS/IFRS) (accounting
periods
commencing
on or after)
------------------------------------------------ -----------------
IFRS 14 Regulatory Deferral Accounts 1 January
2016
Accounting for Acquisitions of Interests 1 January
in Joint Operations (Amendments to 2016
IFRS 11)
Clarification of Acceptable Methods 1 January
of Depreciation and Amortisation (Amendments 2016
to IAS 16 and IAS 38)
Equity Method in Separate Financial 1 January
Statements (Amendments to IAS 27) 2016
Sale or Contribution of Assets between 1 January
an Investor and its Associate or Joint 2016
Venture (Amendments to IFRS 10 and
IAS 28)
Annual Improvements to IFRS 2012 - 1 January
2014 Cycle - various standards 2016
Investment Entities: Applying the Consolidation 1 January
Exception (Amendments to IFRS 10, IFRS 2016
12 and IAS 28)
Disclosure Initiative (Amendments to 1 January
IAS 1) 2016
IFRS 9 Financial Instruments 1 January
2018
------------------------------------------------ -----------------
The Directors do not expect the adoption of the standards and
interpretations to have a material impact on the Group's financial
statements in the period of initial application.
Operating segments
Segment information is not presented in respect of the Group's
management and internal reporting structure following the disposal
of the Basay and Hinoba-an assets, the Company is currently not
generating revenue, and the only business segment is that of an
investment Company.
4 Loss before finance income
Loss before finance income is stated after charging:
Restated
(see Note
6)
Year ended Year ended
31 December 31 December
Company and Group 2015 2014
US$ US$
Auditors' Fees 26,573 30,649
Directors' Fees (note
17) 163,058 179,294
5 Taxation
Income tax
The British Virgin Islands under the International Business
Companies Act 2004 imposes no corporate taxes or capital gains
taxes. However, the Group may be liable for taxes in the
jurisdictions where it is operating, however such operations are
currently loss making.
Deferred tax assets and liabilities
Deferred tax assets have not been recognised because there is
insufficient evidence of the timing of suitable future profits
against which they can be recovered.
6 Assets held for sale and discontinued operations
In 2012, the Group had taken a strategic decision to suspend all
the drilling activities in both Hinoba-an and Basay projects to
pursue a trade sale or a joint venture. In accordance with the
Group's accounting policy, all costs attributable to these projects
were reclassified to Assets held for sale in prior years. These
costs included the following:
Deferred mine exploration cost
Deferred mine exploration costs represented intangible assets
and comprised costs directly attributable to exploration
activities. Equipment and other assets used in exploratory
activities were capitalised in Property, Plant and Equipment.
Depreciation charges in respect of these assets were capitalised in
deferred mine exploration costs.
Advances
Referred to the monthly advanced royalty payments to Colet, the
total of which was a deductible from any future carried net benefit
payment owed by SMC to Colet under the IMOA.
Deferred mine
exploration Advances
Assets reclassified from: costs - Royalties
Hinoba-an Basay Hinoba-an
(Selenga) (Adanacex) (Selenga) Total
COST US$ US$ US$ US$
At 01 January 2015 33,493,905 12,461,646 990,000 46,945,551
Disposals during the year (33,493,905) (12,461,646) (990,000) (46,945,551)
------------------ ------------------ -------------- ------------------
At 31 December 2015 - - - -
------------------ ------------------ -------------- ------------------
IMPAIRMENT
At 01 January 2015 33,493,905 12,461,646 990,000 46,945,551
Disposals during the year
(note 20) (33,493,905) (12,461,646) (990,000) (46,945,551)
------------------ ------------------ -------------- ------------------
At 31 December 2015 - - - -
------------------ ------------------ -------------- ------------------
Net carrying value at - - - -
31 December 2015
Net carrying value at - - - -
31 December 2014
Basay Project
On 10 February 2015, the Company relinquished its interest in
the Basay Project on Negros Island in the Philippines by selling
for a nominal price its 70% holding in Basay Copper Limited, a BVI
company, to Solfotara Mining Holdings (BVI) Limited, its joint
venture partner in that company.
Hinoba-an Project
On 5 October 2015 the Company completed the sale of its interest
in the Hinoba-an Copper Project in the Philippines to 0999562 B.C.
Ltd., a company incorporated in British Columbia, Canada for a cash
consideration of US$500,000.
The comparative Consolidated Statement of Comprehensive Income
has been restated to show the discontinued operation separately
from continuing operations.
(a) Results of discontinued operations
2015 2014
US$ US$
---------------------------------------- ----------- ------------
Revenue - -
Expenses (4,863) (43,412)
Impairment charge - (16,127,627)
---------------------------------------- ----------- ------------
Results from operating activities (4,863) (16,171,039)
Loss on sale on discontinued operations (4,915,626) -
---------------------------------------- ----------- ------------
Loss for the year (4,920,489) (16,171,039)
Attributable to:
Non-controlling interests - (1,066,352)
Equity shareholders (4,920,489) (15,104,687)
---------------------------------------- ----------- ------------
Basic and diluted loss per share (0.1312) (0.4028)
---------------------------------------- ----------- ------------
(b) Cash flows from/(used in) discontinued operations
2015 2014
US$ US$
-------------------------------------- ------- --------
Net cash used in operating activities (4,863) (43,412)
Net cash generated from investing
activities 500,000 -
-------------------------------------- ------- --------
Net cash flow for the year 495,137 (43,412)
-------------------------------------- ------- --------
(c) Effect of discontinued operations on the financial position
of the Group
2015
US$
---------------------------------------- -----------
Effect of discontinued operations
on the net assets and liabilities
of the Group (5,420,489)
Loss on sale of discontinued operations 4,920,489
---------------------------------------- -----------
Consideration received, satisfied
in cash 500,000
---------------------------------------- -----------
7 Investments in subsidiary undertakings
Cost 2015 2014
US$ US$
CDC Philippines Holdings
Limited - 1,500,000
Basay Copper Limited - 1,900,000
------------ ------------
At 31 December 2015/2014 - 3,400,000
At 31 December 2015, the Group had disposed of all subsidiaries
following the sale of its interests in the Basay Copper and
Hinoba-an projects.
8 Company loss
The loss made by the Company during the year was US$5,345,605
(2014: US$16,891,795).
9 Trade and other receivables
At At
31 December 31 December
2015 2014
US$ US$
Advances and deposits
- others 4,621 72,868
Prepayments and other
debtors 38,931 38,818
------------ ------------
43,552 111,686
10 Trade and other payables
At At
31 December 31 December
2015 2014
US$ US$
Accounts payable 679 -
Accrued expenses and
other payables 43,828 49,155
------------ ------------
44,507 49,155
11 Loans receivable
The Company entered into the following loan arrangements:
i. On 5 September 2012, the Company placed GBP350,000
(US$518,073) with Manx Financial Group plc (MFG) as a bond. The
bond bears a fixed rate interest of 5% per annum payable quarterly
in arrears. The principal together with any unpaid interest is
repayable after 5 years. Total interest earned during the year was
GBP17,500 (US$26,697).
ii. On 3 October 2012, the Company placed GBP150,000
(US$222,032) with Manx Financial Group plc (MFG) as a bond. The
bond bears a fixed rate interest of 5% per annum payable quarterly
in arrears. The principal together with any unpaid interest is
repayable after 5 years. Total interest earned during the year was
GBP7,500 (US$11,481).
Loans receivable can be called on at any time and as such have
been included as current assets.
12 Investment in Crazy Horse Resources
On 1 July 2011, the Company acquired, by way of private
placement, a strategic investment in Crazy Horse Resources Inc.
(CHR), a copper and gold company traded on the TSX Venture Exchange
and owns the Taysan Project, an advanced copper gold porphyry
deposit located 100 km south of Manila in the Philippines. At the
time of the acquisition Brian Lueck was a Director of both the
Company and CHR. The total number of shares acquired was 2,496,880
(post 3:1 share consolidation) at a total cost of US$5,861,409.
This investment is classified as financial asset at fair value
through profit or loss. For valuation purposes, it was revalued
using the closing bid price as at the reporting period.
At At
31 December 31 December
2015 2014
Total number of shares
held 2,496,880 2,496,880
US$ US$
Market value of investment
at closing bid price 18,000 32,208
Total cost (5,861,409) (5,861,409)
-------------- --------------
Unrealised loss on investment (5,843,409) (5,829,201)
The loss on the investment in Crazy Horse Resources charged to
the Consolidated Statement of Comprehensive Income was US$14,208
(2014: US$108,605).
13 Share premium
Authorised
The Company is authorised to issue an unlimited
number of nil par value shares of a single
class.
Shares Share Share
capital premium
Issued ordinary US$ US$
shares of US$0.00
each
At 01 January /
31 December 2015 37,501,033 - 37,501,033
At 31 December 2014
/ 31 December 2015 37,501,033 - 62,147,849
14 Warrants
A reconciliation of total number of share warrants in issue as
at the year-end is set out below. None of these warrants were
subject to any vesting period and therefore can be exercised
anytime. Accordingly, the value of these warrants has been expensed
immediately.
Expiry Fair
date Exercised Expired value
(years At during during At at
Issue from Exercise 01 January the the 31 December 31 December
Holder Date admission) Price 2015 year year 2015 2015
GBP0.35
Brant
Investments
Limited 23/12/10 5 years (US$0.55) 2,000,000 - (2,000,000) - -
------------------ ------------------ ------------------ ------------------ ------------------
2,000,000 - (2,000,000) - -
The Company has utilised the Black Scholes Model for the
purposes of estimating fair value of the warrants upon issue. In
accordance with accounting guidance the Company used share price
data of a similar actively listed company as the Company did not
have its own appropriate share trading data at the point of issue
of such warrants.
The following table lists the inputs to the models used for
warrants issued at:
23 December
2010
Dividend yield (%) -
Expected volatility
(%) 100.00%
Risk-free interest
rate (%) 1.24%
Share price at grant US$0.67
date
Share price (market US$0.60
value)
Exercise price US$0.35
Expected exercise 4 years
period
15 Share options
Share Option Scheme
In accordance with, and subject to the terms of the Company's
Share Option Scheme, options issued during the year shall vest in
equal instalments annually over a period of three years from the
date of grant or over a period stated in the relevant option
certificate. Vested options are exercisable at the Exercise Price
and may not be exercised later than the tenth anniversary of the
Date of Grant or such earlier time as determined by the grantor.
The Directors shall have an absolute discretion as to the selection
of persons to whom an Option is granted by the Company. An option
shall not be granted to any person unless he is a person/company
who has provided or is providing services to the Group as a
consultant or otherwise (Approved Grantee) or an employee or any
person nominated by such Approved Grantee or employee. The exercise
price shall be determined by the Directors and shall be the market
value of a Share on the date of the grant of the option to the
option holder or shall be such greater or lesser price as the
Directors shall determine in their discretion provided always that
in the case of a subscription option, the price shall not be less
than the nominal value of a Share.
Exercise of the option may be conditional upon satisfaction of
performance-related conditions as shall be determined by the
Directors and notified to the option holder on the date of the
grant. They are not transferable and may not be exercised when to
do so would contravene the provisions of the Company's code
governing share dealings by directors and employees. In the event
that a director/consultant resigns and ceases to be engaged by the
Company in any role, pursuant to the Share Option Scheme rules, he
or she may only exercise options which have vested and for a period
of no later than six months from resignation.
A reconciliation of total number of share warrants in issue as
at the year-end is set out below.
Vesting
period
/
Exercise
period Exercised Expired
from At during during At
Issue Issue Exercise 01 January the the 31 December
Holder Date date Price 2015 year year 2015
Directors
and certain 3 years
key /
employees 01/06/10 5 years US$0.35 2,250,000 - (2,250,000) -
Key
employees 3 years
and /
consultants 09/05/11 5 years GBP0.35 300,000 - (300,000) -
-------------------------- -------------------------- ------------------------- --------------------------
2,550,000 - (2,550,000) -
Total number of options that has vested and available for
exercise as at the year-end was nil (2014: 2,550,000).
The Group calculates the costs of share based payment based on
its fair value and the estimate of number of options expected to
vest. The cost is spread evenly over the vesting period. Based on
the estimated number of options expected to vest, the total fair
value of share options is US$nil (31 December 2014: US$1,294,823)
all of which have been recognised as expense as at 31 December
2015.
The Company has utilised the Black Scholes Model for the
purposes of estimating fair value of the share options upon issue.
In accordance with accounting guidance the Company has used share
price data of a similar actively listed company where the Company
did not have its own appropriate share trading data.
The following table lists the inputs to the models used for
options issued at:
9 May 1 June
2011 2010
Dividend yield (%) - -
Expected volatility
(%) 100.00% 100.00%
Risk-free interest
rate (%) 1.85% 1.24%
Share price at grant US$0.57 US$0.67
date
Share price (market US$0.35 US$0.60
value)
Exercise price US$0.58 US$0.35
Expected exercise 3 years 4 years
period
16 Financial instruments
Financial risk management
The Group has risk management policies that systematically view
the risks that could prevent the Group from achieving its
objectives. These policies are intended to manage risks identified
in such a way that opportunities to deliver the Group's objectives
are achieved. The Group's risk management takes place in the
context of day-to-day operations and normal business processes such
as strategic planning and business planning. Management has
identified each risk and is responsible for coordinating and
continuously improving risk strategies, processes and measures in
accordance with the Group's established business objectives.
The Group's principal financial instruments consist of cash,
receivables and payables arising from its operations and
activities. The main risks arising from the Group's financial
instruments and the policies for managing each of these risks are
summarised below.
Liquidity risk
Liquidity risk is the risk that the Company will encounter
difficulty in meeting the obligations associated with its financial
liabilities that are settled by delivering cash or another
financial asset.
Liquidity risk is managed by the Company by means of cash flow
planning to ensure that future cash requirements are anticipated.
All liabilities are due within one month and all cash maintained in
call accounts. To date the Group has relied upon equity funding to
finance operations. The carrying amount of financial assets and
liabilities reported in the consolidated statement of financial
position represents the maximum exposure to liquidity risk. During
the prior year, the Group has taken a decision to place the
Hinoba-an and Basay projects under care and maintenance to pursue a
trade sale or a joint venture. Significant costs reductions had
been implemented across the Group to the minimum level that is
required to maintain the sites and meet regulatory requirements for
mining companies in the Philippines prior to the disposal of these
assets. Based on the revised 12 month budget approved by the Board,
the average monthly corporate costs of the Group stands at
approximately US$40,000. Management is confident that adequate
resources are available to meet current obligations whilst efforts
are focused on making suitable acquisitions in line with the
investing policy.
Credit risk
Credit risk is the risk of loss associated with the
counterparty's inability to fulfil its payment obligations. The
Group's credit risk is primarily attributable to receivables and
cash balances with the maximum exposure being the reported balance
in the statement of financial position. The Company holds available
cash with licensed banks which have strong history. The Group
considers the credit ratings of banks in which it holds funds in
order to reduce exposure to credit risk. The bank accounts are held
under a fiduciary agreement and funds are available on demand.
Interest rate exposure
Interest rate risk is the risk that the Group will sustain
losses through adverse movements in interest bearing assets or
liabilities; however it is the Directors' opinion that the Group is
not significantly exposed to interest rate risk.
Market price risk
Equity price risk arises from financial assets at fair value
through profit or loss due to uncertainties about future values of
the instrument. Investment held at year end represents interest
held in the share capital of Crazy Horse Resources, a copper and
gold company traded on the TSX Venture Exchange. The performance of
this investment is monitored and reviewed by management on a
regular basis. As at 31 December 2015, the fair value of equity
security exposed to price risk was US$18,000 (2014: US$32,208). A
5% increase or decrease in the fair value of this listed investment
with all other variables constant would have increased/decreased
the profit or loss and equity by US$900 (2014: US$1,610).
Foreign exchange risk
The Group was exposed to foreign currency risk on fluctuations
related to financial assets and liabilities that are denominated in
Pounds (GBP), Philippine Peso (PHP), and Canadian Dollars (CAD).
The amounts exposed to foreign currency risk are as follows (in
currency balance):
GBP PHP CAD
31 December Cash 541,097 - -
2015
Accounts - - -
receivable
Investment - - -
Accounts - - -
payable
31 December
2014 Cash 588,529 295,492 -
Accounts 14,795 - -
receivable
Investment - - 24,969
Accounts
payable (29,698) (229,499) -
The impact of 5% strengthening of the following major currencies
against US Dollars to total comprehensive income/loss is set-out
below. A 5% weakening in these currencies would have had the equal
but opposite effect, on the basis that all other variables remain
constant.
31 December 31 December
US Dollars 2015 2014
against: US$ US$
GBP 39,680 42,640
PHP - 74
CAD - 1,448
There is no other impact on the Group's equity other than those
already affecting the consolidated statement of comprehensive
income / (loss).
Political risks
The Group's operations are subject to laws and regulations
governing exploration activities. While the Group believes that it
is in substantial compliance with all material current laws and
regulations affecting its activities, future changes in laws and
regulations could result in changes in legal requirements or in the
terms of existing agreements applicable to the Group which could
have a material adverse impact on the Group's current operations or
planned implementation of the investing policy.
Financial risk management classification
Financial instruments comprise cash and trade and other
receivables (classified as loans and receivables) and accounts
payable and accrued expenses (classified as other financial
liabilities). The carrying amounts of these financial instruments
reported in the statement of financial position approximate their
fair values due to the short-term nature of these accounts.
Capital Management
The Group manages its capital to maximize the return to the
shareholders through the optimization of equity. The capital
structure of the Group at 31 December 2015 consists of equity
attributable to equity holders of the Company, comprising issued
capital, reserves and retained earnings as disclosed.
The Group manages its capital structure and makes adjustments to
it, in light of economic conditions and the strategy approved by
shareholders. To maintain or adjust the capital structure, the
Group may adjust any dividend payment to shareholders, return
capital to shareholders or issue new shares and release the
Company's share premium account. No changes were made in the
objectives, policies or processes during the years ended 31
December 2015 and 2014.
17 Related party transactions
All related party transactions occurred in the normal course of
operations, and are measured at the fair value, which is the amount
of consideration established and agreed to by the related
parties.
Key management personnel
The Directors of the Company received the following remuneration
during the year:
Year ended Year ended
31 December 31 December
2015 2014
US$ US$
Mitch Alland 90,000 90,000
Denham Eke 50,368 50,035
Guy Elliott (resigned
01 December 2014) - 11,000
-------------- --------------
140,368 151,035
Directors of subsidiaries 22,690 28,259
-------------- --------------
163,058 179,294
The Directors hold the following number of shares in the Company
as the year end:
% of issued
Number share
capital
Mitch Alland 450,002 1.20%
Denham Eke / James
Mellon 1 286,000 0.76%
------------ ------------
736,002 1.96%
Notes to Directors' Interests:
1 Denham Eke and James Mellon are Director's of Galloway
Limited. At 31 December 2015 Galloway Limited held 286,000 shares
representing 0.76% of the issued share premium at the year end.
There were no warrants or options currently in issue to key
personnel of the Company. The following table summarises a
reconciliation of options in issue to key personnel as at 31
December 2015:
Name 01 January 31 December
2015 Granted Expired Exercised 2015
Options
Denham Eke 1,000,000 - 1,000,000 - -
Mitch Alland 1,000,000 - 1,000,000 - -
Burnbrae Limited
The Company has entered into a service agreement with Burnbrae
Limited for the provision of administrative and general office
services. Mr Denham Eke and James Mellon are Directors of both
Burnbrae Limited and the Company. During the year ended 31 December
2015 the Company incurred costs of US$52,056 (2014: US$51,676)
under this agreement of which US$Nil were outstanding as at the
year end (2014: US$Nil).
Manx Financial Group plc (MFG)
The Company entered into loan agreements with MFG, terms of the
agreement are disclosed in Note 11. Denham Eke and James Mellon are
Director's of both the Company and MFG.
18 Significant shareholdings
As of 31 December 2015 the Company is aware of the following
persons who hold, directly or indirectly, voting rights
representing 3% or more of the issued share capital of the Company
to which voting rights are attached:
Number of Percentage
ordinary shares of total
held issued capital
Michael Baybak 1 7,207,428 19.22%
Front St Investment 2,388,571 6.37%
Management Inc
TD Direct Investing 1,866,164 4.98%
Nominees (Europe) Limited
Eli Management LLC 1,787,428 4.77%
Wang Strategic Capital 1,428,571 3.81%
Partners (II) Limited
TD Direct Investing 1,381,637 3.68%
N. Y. Nominees Limited 1,218,900 3.25%
Barclayshare Nominees 1,185,227 3.16%
Limited
Notes:
(1) Michael Bayback shareholding consists of 836,000 shares held
in his own name and 6,371,428 shares held by Anglo Mongolian Gold
Corporation, a company whose sole shareholder is Michael
Bayback.
19 Basic and diluted earnings per share
The calculation of total basic earnings per share of the Group
is based on the net loss attributable to shareholders for the year
of US$5,461,891 (2014: US$15,825,417) and the weighted average
number of shares outstanding of 37,501,033 (2014: 37,501,033).
The calculation of basic earnings per share of the Group's
continuing operations is based on the net loss attributable to
shareholders for the year from continuing operations of US$541,402
(2014: US$720,730) and the weighted average number of shares
outstanding of 37,501,033 (2014: 37,501,033).
Diluted earnings per share are calculated adjusting the weighted
average number of ordinary shares outstanding to assume conversion
of all dilutive potential ordinary shares. As at 31 December 2015
and 2014, there is no dilutive effect, because the Group incurred
net losses. Therefore, basic and diluted earnings per share are
equal.
At At
Weighted average number 31 December 31 December
of ordinary shares 2015 2014
Issued ordinary shares
at 01 January / 31 December 37,501,033 37,501,033
20 Impairment loss
At 31 December 2015, the Group had disposed of all subsidiaries
following the sale of its interests in the Basay Copper and
Hinoba-An projects. Certain assets of the group were assessed for
impairment in prior years. The following impairment losses have
been recognised as a result of assessments made:
Year ended Year ended
31 December 31 December
2015 2014
US$ US$
Assets held for
sale (note 6) - 16,072,099
-------------- --------------
- 16,072,099
21 Subsequent events
There are no significant events subsequent to year end.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR SEDFAUFMSELM
(END) Dow Jones Newswires
June 30, 2016 02:00 ET (06:00 GMT)
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