20th Aug 2015 13:53
20 August 2015
NAMIBIAN RESOURCES PLC
RESULTS FOR THE YEAR ENDED 28 FEBRUARY 2015
Namibian Resources plc ("the Company") is pleased to present its results for the year ended 28 February 2015. A copy of the annual report and accounts is expected to be posted to shareholders on 24 August 2015 and will also be available on the Company's website, http://www.namibianresources.com/
Together with the annual report and accounts, the Company is posting to shareholders a notice of its annual general meeting which will take place at 11.00am on Monday 21 September 2015 at Craven House, West Street, Farnham, Surrey, GU9 7EN.
Enquiries:
Brian Moritz, Chairman, Namibian Resources Plc
| Tel: 01252 733683 |
Colin Aaronson/Jen Clarke Grant Thornton UK LLP, Nominated Adviser | Tel: 0207 383 5100 |
CHAIRMAN'S STATEMENT
Operations
Production at the Group's Sonnberg diamond mine remains suspended, and is not expected to re-commence. In previous periods the value of the mining lease was fully impaired and the mobile and fixed plant was impaired down to its estimated realisable value, which is still considered to be reasonable. The ownership of such plant has now been transferred from Sonnberg to the Company.
The agreement under which Sonnberg previously mined is open to differing interpretations regarding rehabilitation costs. Sonnberg has contributed a percentage of the value of diamonds mined to a fund held by Namdeb, but the adequacy of this fund is uncertain. The directors therefore provided a further amount of £70,000 to cover the potential liability, and no change to this provision has been made in the current year, notwithstanding the fall in the value of the Namibian Dollar, the currency in which the liability is denominated.
Financial
During the period the Group reports a consolidated loss from operating activities, before and after tax, of £120,416 (2014 loss: £531,758), shown after the impairment charge of £nil (2014: £185,887). After adjusting for exchange differences, the total comprehensive loss for the period was £113,183 (2014 loss: £682,908). During the year, the Company raised £146,600, before expenses, by a placing of new shares. Separate financing will be sought for new projects, which is likely to be by way of both equity and project finance.
Since the end of the year, the Company capitalised £645,600 of interest free loans advanced by directors and former directors and their associates by the issue of 13,465,263 new ordinary shares of 1p each at 4.75p per share. Following this the Company is free of material amounts of debt.
Future prospects
Apart from assessing opportunities to realise value from the plant and equipment transferred from Sonnberg, the Company is currently involved in evaluating and negotiating potential acquisitions, including an oil production company in the Republic of Congo. Much of the last year has been spent in negotiating for the acquisition of a diamond mine in South Africa, but this has been discontinued as the required mining finance could not be secured. The evaluation of a copper project in South Africa has also been discontinued.
At the forthcoming AGM shareholders will be given the opportunity to consider what steps, if any, should be taken to deal with the Company's substantial loss of capital as required by S656 of the Companies Act 2006. As the current share price is materially below par a reduction in the par value will be required to facilitate a transaction, and the requisite resolutions put to shareholders in due course.
B M Moritz (Chairman)
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 28 FEBRUARY 2015
| 2015 £ | 2014 £ | |||||||||||
Continuing operations Revenue |
- |
- | |||||||||||
Cost of sales | - | - | |||||||||||
Gross loss | - | - | |||||||||||
Administrative expenses | (120,022) | (529,752) | |||||||||||
Loss from operating activities | (120,022) | (529,752) | |||||||||||
Finance costs | (394) | (2,006) | |||||||||||
Loss before tax | (120,416) | (531,758) | |||||||||||
Taxation | - | - | |||||||||||
Loss for the year from operating activities | (120,416) | (531,758) | |||||||||||
Exchange translation on foreign operations | 7,233 | (154,150) | |||||||||||
Total comprehensive expense for the year | (113,183) | (685,908) | |||||||||||
Loss per ordinary share (pence) | |||||||||||||
Basic and diluted | (0.16) | (0.86) | |||||||||||
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 28 FEBRUARY 2015
| 2015 £ | 2014 £ | ||||||||||
Non-current assets | ||||||||||||
Property, plant and equipment | 257,888 | 260,264 | ||||||||||
Intangible assets | - | - | ||||||||||
257,888 | 260,264 | |||||||||||
Current assets | ||||||||||||
Trade and other receivables | 51,896 | 49,048 | ||||||||||
Cash and cash equivalents | 9,395 | 7,689 | ||||||||||
61,291 | 56,737 | |||||||||||
Total assets | 319,179 | 317,001 | ||||||||||
Equity | ||||||||||||
Share capital | 4,328,355 | 4,211,235 | ||||||||||
Share premium | 1,050,197 | 1,027,317 | ||||||||||
Currency translation reserve | 158,756 | 158,491 | ||||||||||
Retained deficit | (6,008,315) | (5,894,867) | ||||||||||
(471,007) | (497,824) | |||||||||||
Current liabilities | ||||||||||||
Trade and other payables | 720,186 | 744,825 | ||||||||||
Provisions | 70,000 | 70,000 | ||||||||||
790,186 | 814,825 | |||||||||||
Total equity and liabilities | 319,179 | 317,001 | ||||||||||
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 28 FEBRUARY 2015
|
Share capital £ |
Share premium £ | Currency translation reserve £ |
Retained deficit £ |
Total £ |
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Balance at 28 February 2013 | 4,211,235 | 1,027,317 | 306,355 | (5,356,823) | 188,084 |
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Loss for the financial year | - | - | - | (531,758) | (531,758) |
| ||||||||||
Foreign exchange difference | - | - | (147,864) | (6,286) | (154,150) |
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Total comprehensive expense for the year | - | - | (147,864) | (538,044) | (685,908) |
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Balance at 28 February 2014 | 4,211,235 | 1,027,317 | 158,491 | (5,894,867) | (497,824) |
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Loss for the financial year | - | - | - | (120,416) | (120,416) |
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Foreign exchange difference | - | - | 7,233 | - | 7,233 |
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Total comprehensive expense for the year | - | - | 7,233 | (120,416) | (113,183) |
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Issue of ordinary shares | 117,120 | 29,280 | - | - | 146,400 |
| ||||||||||
Issue costs | - | (6,400) | - | - | (6,400) |
| ||||||||||
117,120 | 22,880 | - | - | 140,000 |
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Balance at 28 February 2015 | 4,328,355 | 1,050,197 | 165,724 | (6,015,283) | (471,007) |
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The currency translation reserve comprises all foreign currency differences arising from the translation of the financial statements of the foreign operation.
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 28 FEBRUARY 2015
| 2015 £ | 2014 £ |
| |||||||||||||||||
Cash flows from operating activities |
| |||||||||||||||||||
Loss for the year | (120,416) | (531,758) |
| |||||||||||||||||
Depreciation Amortisation of intangible assets | - - | 1,301 53,891 |
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Impairment of non-current assets | - | 185,887 |
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Foreign exchange differences | - | (6,286) |
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Finance costs | 394 | 2,006 |
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(120,022) | (294,959) |
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Changes in: - inventories |
- |
1,730 |
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- trade and other receivables | (2,848) | (8,658) |
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- trade and other payables - provision | (30,369) - | 237,344 70,000 |
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- foreign exchange movement on working capital |
9,337 |
- |
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Cash (used in)/from operating activities | (143,902) | 5,457 |
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Cash flows from investing activities |
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Interest paid | (394) | (2,006) |
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Net cash flows from investing activities | (394) | (2,006) |
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Cash flows from financing activities |
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Proceeds from issue of share capital | 140,000 | - |
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Advances from Shareholders | 6,000 | - |
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Net cash flows from financing activities | 146,000 | - |
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Net increase in cash and cash equivalents | 1,704 | 3,451 |
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Cash and cash equivalents at beginning of year | 7,689 | 4,307 |
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Effect of exchange rate fluctuations on cash held | 2 | (69) |
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Cash and cash equivalents at 28 February | 9,395 | 7,689 |
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NOTES
1 General information
The financial information set out above does not comprise statutory accounts for the purposes of Section 434 of Companies Act 2006.
The balance sheet at 28 February 2015, the income statement and the cash flow statement for the year then ended have been extracted from the Company's statutory financial statements upon which the auditor's opinion is unqualified and does not include any statement under Section 498 of the Companies Act 2006.
2 Basis of preparation
The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards ('IFRS') as issued by the International Accounting Standards Board and as adopted by the European Union..
3 Going concern
During the year, the Group raised approximately £146,600, before expenses, by a placing of new shares. The Company currently has offers of further equity finance as well as offers for its mobile plant. Taking these into account, and also the low level of overhead costs being incurred, the directors have formed a judgement that, as at the date of approving the financial statements, there is a reasonable expectation that the Company has adequate resources to continue in operational existence. This judgement is based on the assumption that the Company will be able to continue to raise capital to fund its activities and in future to obtain finance for project development.
There is no certainty such funds will be available when needed. To date the Company has managed to raise funds through equity placements despite the very difficult market that currently exists for raising funding in the junior mining industry.
For this reason, the directors have adopted the going concern basis in preparing the accounts. In forming this judgement the directors have taken account of there being no outstanding liabilities other than in the normal course of business. There were no borrowings other than from Directors and former Directors, which borrowings have been converted to equity since the year end. The directors believe that the Company will be able to meet its liabilities as they fall due.
4 Loss per share
The calculation of loss per share for the year ended 28 February 2015 is based on the loss for the year after tax attributable to ordinary shareholders of £120,416 (2014: £531,758), and a weighted average number of ordinary shares in issue of 72,249,845 (2014: 61,821,352).
Related Shares:
NBR.L