25th Sep 2013 07:00
Embargoed: 0700hrs 25 September 2013
Premier Gold Resources plc
("Premier Gold" or the "Company")
Half yearly results for the six months ended 30 June 2013
Premier Gold (AIM: PGR), the Central Asia-focused gold exploration and development company, announces its half yearly results for the six months ended 30 June 2013.
Chairman's Statement
A number of material developments occured during the period under review which add to the strength and prospects of the Company's Cholokkaindy gold licence in the Kyrgyz Republic.
In February 2013, Premier Gold was successful in achieving a licence extension on Cholokkaindy through to 31 December 2017. A few months later, in May 2013, the Company announced the sanctioning of an 8 square kilometre extension of the licence boundary, into an area in which the Company believes the mineralised zone further extends. This has an obvious beneficial impact on the size of the future potential resource at Cholokkaindy.
Exploration work to date at Cholokkaindy has produced highly encouraging results. Geological results support the view that Cholokkaindy is one large mineralising system, displaying several key indicators associated with other large gold deposits in the northern Tien Shan metallogenic belt. Central to the Company's ability to prove up this view is its capacity to fund further exploration work. It was therefore pleasing to be able to announce, on 2 July 2013 (immediately after the period under review), a further funding package which provides the Company with an additional £1 million by way of a convertible loan receivable in four quarterly tranches. The first £250,000 was received by the Company on [30] June 2013.
Financial Results
Premier Gold is an early-stage exploration company and, as such, has no revenues. Its expenditure relates primarily to activities in respect of the exploration and analysis of the Cholokkaindy licence. The Company recorded a loss before tax for the period of £807,930 (H12012: £669,008).
Outlook
With the benefit of the funding, the Company plans to upgrade and extend the areas of known mineralisation and to undertake a drilling programme to allow a three dimensional picture of the mineralisation to be assessed.The Company looks forward to reporting operational developments in respect of these objectives as soon as it is in a position to do so.
Colonel Robert Stewart DSO MP
Chairman
25 September 2013
Contacts:
Premier Gold Resources plc | |
Richard Nolan, CEO | 020 7953 4028 |
Sanlam Securities UK Limited (Nominated Adviser and Broker) | |
Lindsay Mair / Richard Goldsmith / Catherine Miles | 020 7628 2200 |
Vigo Communications | |
Ben Simons / Chris McMahon | 020 7016 9574 |
About Premier Gold Resources plc
Premier Gold Resources plc (AIM:PGR) is a gold exploration and development company listed on the London Stock Exchange. Premier Gold is focused on gold opportunities in Central Asia, in particular the Kyrgyz Republic, where the Company's current project, Cholokkaindy, is undergoing extensive exploration and analysis.
Cholokkaindy is a 32 square kilometre licence area located in the northern Tien Shan, 20 kilometres south of Kara Balta and 80 kilometres southwest of Bishkek. Geological results from Premier Gold's work programme to date support the view that Cholokkaindy is one large mineralising system, displaying several key indicators associated with other large gold deposits in the northern Tien Shan metallogenic belt.
For further information please visit: www.premiergoldresources.com
Premier Gold Resources Plc
Interim results
For the six months ended 30 June 2013
Consolidated statement of comprehensive income
Six months ended | Six months ended | Year ended | ||||
30 June | 30 June | 31 December | ||||
2013 | 2012 | 2012 | ||||
(unaudited) | (unaudited) | (audited) | ||||
£ | £ | £ | ||||
Revenue | - | - | - | |||
Cost of sales | - | - | - | |||
Gross profit | - | - | - | |||
Administrative expenses | (401,553) | (639,309) | (1,232,234) | |||
Share based payments | (12,333) | (34,453) | (69,655) | |||
Operating loss | (413,886) | (673,762) | (1,301,889) | |||
Finance income | 141 | 4,754 | 1,802 | |||
Fair value loss on derivative financial assets | (394,185) | (193,750) | ||||
Finance expense | - | - | (34,523) | |||
Loss before income taxation | (807,930) | (669,008) | (1,528,360) | |||
Income tax expense | - | (1,588) | - | |||
Loss for the period and total comprehensive income attributable to owners of the parent | (807,930) | (670,596) | (1,528,360) | |||
Non-controlling interests | 22,411 | 27,719 | 54,618 | |||
Loss for the period | (785,519) | (642,877) | (1,473,742) | |||
Loss per share - | ||||||
Basic and diluted | (0.08)p | (0.11)p | (0.22)p |
Consolidated statement of financial position
As at 30 June 2013
30 June | 30 June | 31 December | ||||
2013 | 2012 | 2012 | ||||
(unaudited) | (unaudited) | (audited) | ||||
£ | £ | £ | ||||
ASSETS | ||||||
Non-current assets | ||||||
Intangible assets | 3,845,293 | 3,070,477 | 3,780,831 | |||
Property, plant and equipment | 19,898 | 30,227 | 23,789 | |||
Derivative financial assets | 196,875 | - | 436,719 | |||
Total non-current assets | 4,062,066 | 3,100,704 | 4,241,339 | |||
Current assets | ||||||
Inventory | 2,675 | 4,070 | 68 | |||
Trade and other receivables | 64,126 | 165,256 | 117,699 | |||
Derivative financial assets | 114,844 | - | 369,531 | |||
Cash and cash equivalents | 44,921 | 443,411 | 181,857 | |||
Total current assets | 226,566 | 612,737 | 669,155 | |||
Total assets | 4,288,632 | 3,713,441 | 4,910,494 | |||
LIABILITIES | ||||||
Current liabilities | ||||||
Trade and other payables | (422,078) | (51,984) | (218,145) | |||
Total liabilities | (422,078) | (51,984) | (218,145) | |||
Net current assets | (195,512) | 560,753 | 451,010 | |||
Net assets | 3,866,554 | 3,661,457 | 4,692,349 | |||
EQUITY | ||||||
Equity attributable to owners of the parent | ||||||
Called up share capital | 1,951,415 | 1,624,540 | 1,951,415 | |||
Share premium account | 5,932,983 | 5,085,030 | 5,932,983 | |||
Capital redemption reserve | 43,333 | 43,333 | 43,333 | |||
Merger reserve | 2,416,667 | 2,416,667 | 2,416,667 | |||
Retained earnings | (7,043,765) | (5,472,696) | (6,268,359) | |||
Foreign currency reserve | 445 | - | 26,230 | |||
3,301,078 | 3,696,874 | 4,102,269 | ||||
Non-controlling interests | 565,476 | (35,417) | 590,080 | |||
Total equity | 3,866,554 | 3,661,457 | 4,692,349 |
Statement of changes in equity
For the six months ended 30 June 2013
Foreign | Capital | Non | |||||||||||||||
Share | Share | Retained | currency | redemption | Merger | controlling | |||||||||||
capital | premium | earnings | reserve | reserve | reserve | interests | Total | ||||||||||
£ | £ | £ | £ | £ | £ | £ | £ | ||||||||||
Unaudited | |||||||||||||||||
Balance at 1 January 2013 | 1,951,415 | 5,932,983 | (6,268,359) | 26,230 | 43,333 | 2,416,667 | 590,080 | 4,692,349 | |||||||||
Total comprehensive income for the period | - | - | (785,519) | - | - | - | (22,411) | (807,930) | |||||||||
Equity settled share based payment | - | - | 12,333 | - | - | - | - | 12,333 | |||||||||
Currency translation differences on foreign currency net investments | - | - | (2,220) | (25,785) | - | - | (2,193) | (30,198) | |||||||||
Balance at 30 June 2013 | 1,951,415 | 5,932,983 | (7,043,765) | 445 | 43,333 | 2,416,667 | 565,476 | 3,866,554 | |||||||||
Unaudited | |||||||||||||||||
Balance at 1 January 2012 | 1,471,207 | 4,821,530 | (4,864,272) | - | 43,333 | - | - | 1,471,798 | |||||||||
Total comprehensive income for the period | - | - | (642,877) | - | - | - | (27,719) | (670,596) | |||||||||
Issue of shares | 153,333 | 280,000 | - | - | - | - | - | 433,333 | |||||||||
Costs in respect of shares issued | - | (16,500) | - | - | - | - | - | (16,500) | |||||||||
On acquisition of subsidiaries | - | - | - | - | - | 2,416,667 | (7,698) | 2,408,969 | |||||||||
Equity settled share based payment | - | - | 34,453 | - | - | - | - | 34,453 | |||||||||
Balance at 30 June 2012 | 1,624,540 | 5,085,030 | (5,472,696) | - | 43,333 | 2,416,667 | (35,417) | 3,661,457 | |||||||||
Audited | |||||||||||||||||
Balance at 1 January 2012 | 1,471,207 | 4,821,530 | (4,864,272) | - | 43,333 | - | - | 1,471,798 | |||||||||
Total comprehensive income for the year | - | - | (1,473,742) | - | - | - | (54,618) | (1,528,360) | |||||||||
On acquisition of subsidiaries | - | - | - | - | - | - | 642,950 | 642,950 | |||||||||
Issue of shares | 480,208 | 1,260,625 | - | - | - | - | - | 1,740,833 | |||||||||
Costs in respect of shares issued | - | (149,172) | - | - | - | - | - | (149,172) | |||||||||
On acquisition of subsidiaries | - | - | - | - | - | 2,416,667 | - | 2,416,667 | |||||||||
Equity settled share based payment | - | - | 69,655 | - | - | - | - | 69,655 | |||||||||
Currency translation differences on foreign currency net investments | - | - | - | 26,230 | - | - | 1,748 | 27,978 | |||||||||
Balance at 31 December 2012 | 1,951,415 | 5,932,983 | (6,268,359) | 26,230 | 43,333 | 2,416,667 | 590,080 | 4,692,349 | |||||||||
Cash flow statement
For the six months ended 30 June 2013
Six months ended | Six months ended | Year ended | ||||
30 June | 30 June | 31 December | ||||
2013 | 2012 | 2012 | ||||
(unaudited) | (unaudited) | (audited) | ||||
£ | £ | £ | ||||
Operating activities | ||||||
Operating loss | (413,886) | (673,762) | (1,301,889) | |||
Depreciation of property plant and equipment | 4,685 | 3,965 | 8,334 | |||
Amortisation of intangible assets | 45 | - | - | |||
Loss on disposal of property, plant and equipment | 35 | - | - | |||
(Increase)/decrease in inventory | (2,607) | 698 | 4,700 | |||
Decrease in trade and other receivables | 53,573 | 21,733 | 659,899 | |||
Increase/(decrease) in trade and other payables within one year | 203,933 | (128,003) | (551,141) | |||
Equity-settled share based payment | 12,333 | 34,453 | 69,655 | |||
Income tax paid | - | (1,176) | - | |||
Other movement | (42,932) | - | 39,093 | |||
Cash outflows from operating activities | (184,821) | (742,092) | (1,071,349) | |||
Investing activities | ||||||
Finance income | 141 | 4,754 | 1,802 | |||
Finance expense | - | - | (34,523) | |||
Net generated from/(cash used in) investing activities | 141 | 4,754 | (32,721) | |||
Capital expenditure | ||||||
Payments to acquire intangible assets | (52,602) | (83,695) | (154,613) | |||
Payments to acquire property, plant and equipment | - | (7,073) | (5,805) | |||
Net cash outflow for capital expenditure | (52,602) | (90,768) | (160,418) | |||
Acquisitions and disposals | ||||||
Purchase of subsidiary undertakings | - | (3,170) | (3,170) | |||
Cash acquired on acquisition of subsidiary undertaking | - | 21,760 | 21,760 | |||
Net cash generated from acquisitions and disposals | - | 18,590 | 18,590 | |||
Financing activities | ||||||
Issue of share capital | 100,346 | 350,000 | 557,500 | |||
Costs in respect of share issue | - | (16,500) | (49,172) | |||
Net cash generated from financing activities | 100,346 | 333,500 | 508,328 | |||
Net decrease cash and cash equivalents | (136,936) | (476,016) | (737,570) | |||
Cash and cash equivalents at start of period | 181,857 | 919,427 | 919,427 | |||
Cash and cash equivalents at end of period | 44,921 | 443,411 | 181,857 |
Notes to the interim financial statements
1 General information
Premier Gold Resources Plc is a company incorporated in the United Kingdom, which is listed on the Alternative Investment Market of the London Stock Exchange Plc. The address of its registered office is Stonebridge House, Chelmsford Road, Hatfield Heath, Essex CM22 7BD. The Group is primarily involved in the exploration for gold.
2 Financial information
The interim financial information for the six months ended 30 June 2013 has not been audited or reviewed and does not constitute statutory accounts within the meaning of Section 434 of the Companies Act 2006. The comparative financial information for the year ended 31 December 2012 has been derived from the audited financial statements for that period. A copy of those statutory financial statements for the year ended 31 December 2012 has been delivered to the Registrar of Companies. The report of the independent auditors on those financial statements was unqualified and did not contain a statement under Sections 498 (2) or (3) of the Companies Act 2006.
The interim financial statements have been prepared in accordance with International Financial Reporting Standards ('IFRS') as adopted by the European Union, IFRIC interpretations and the Companies Act 2006 applicable to companies reporting under IFRS and under the historical cost convention. They have also been on a basis consistent with the accounting policies expected to be applied for the year ending 31 December 2013 and which are also consistent with those set out in the statutory accounts of the Company for the year ended 31 December 2012, except for the adoption of new standards and interpretations.
3 Taxation
On the basis of these accounts there is no tax charge for the period.
4 Earnings per share
The earnings and number of shares used in the calculation of earnings per share are as follows:
Six months ended | Six months ended | Year ended | ||||
30 June | 30 June | 31 December | ||||
2013 | 2012 | 2012 | ||||
(unaudited) | (unaudited) | (audited) | ||||
Basic and diluted | ||||||
Loss for the financial period | (807,930) | (669,008) | (1,528,360) | |||
Weighted average number of shares | 1,008,953,458 | 616,488,833 | 658,129,232 | |||
Loss per share | (0.08)p | (0.11)p | (0.23)p |
There was no dilutive effect in respect of the share options and warrants outstanding during the period.
5 Dividends
The directors do not propose to declare a dividend for the period.
6 Derivative financial assets
In December 2012, the Company issued 250 million new shares of 0.1p per share at a price of 0.4p per share to Lanstead Capital L.P. ('Lanstead') with a notional value of £1 million. The Company entered into an equity swap price mechanism with Lanstead for a notional 75% of these shares with a notional reference price of 0.5333p per share. Lanstead have hedged the consideration they pay for shares in the Company against the performance of the Company's share price over a 24 month period. All 250 million shares were allotted with full rights on the date of the transaction.
To the extent that the share price is greater or lower than the reference price at each swap settlement, the Company will receive greater or lower consideration calculated on pro-rata basis i.e. share price / reference price multiplied by the monthly transfer amount. The valuation for each settlement is determined to be the average share price for the preceding 5 trading days up to settlement date.
As the amount of the consideration receivable by the Company from Lanstead will vary subject to the change in the Company's share price and will be settled in the future, the receivable is treated as a derivative financial asset and has been designated at fair value through profit or loss.
The Company also issued 25 million shares to Lanstead as a value payment in connection with the equity swap agreement.
The fair value of the derivative financial assets has been determined by reference to the Company's share price and has been estimated as follows:
Notional | Fair | |||
number of | value | |||
Share | outstanding | |||
price | shares | |||
Number | £ | |||
Unaudited | ||||
Value of derivative at 1 January 2013 | 187,500,000 | 806,250 | ||
Consideration received | (39,062,500) | (100,346) | ||
148,437,500 | 705,904 | |||
Loss on revaluation of derivative financial asset | (394,185) | |||
Value of derivative financial assets at 30 June 2013 | 0.21p | 311,719 | ||
Due within one year | 93,750,000 | 196,875 | ||
Due after more than one year | 54,687,500 | 114,844 | ||
148,437,500 | 311,719 | |||
Unaudited | ||||
There are no comparative figures for the six months ended 30 June 2012 as the derivative financial assets were only acquired in December 2012. | ||||
Number | £ | |||
Audited | ||||
Value recognised on inception (notional) | 0.5333p | 187,500,000 | 1,000,000 | |
Loss on revaluation of derivative | (193,750) | |||
Value of derivative financial assets at 31 December 2012 | 0.43p | 806,250 | ||
Due within one year | 85,937,500 | 369,531 | ||
Due after more than one year | 101,562,500 | 436,719 | ||
187,500,000 | 806,250 |
7 Share capital
| |||||||||
30 June 2013 | 30 June 2012 | ||||||||
Number | £ | Number | £ | ||||||
(unaudited) | (unaudited) | (unaudited) | (unaudited) | ||||||
Allotted, called up and fully paid | |||||||||
Ordinary shares of 0.1p each | 1,008,953,458 | 1,008,953 | 682,078,458 | 682,078 | |||||
Deferred shares of 0.1p each | 942,462,000 | 942,462 | 942,462,000 | 942,462 | |||||
1,951,415 | 1,624,540 | ||||||||
31 December 2012 | |||||||||
Number | £ | ||||||||
(audited) | (audited) | ||||||||
Allotted, called up and fully paid | |||||||||
Ordinary shares of 0.1p each | 1,008,953,458 | 1,008,953 | |||||||
Deferred shares of 0.1p each | 942,462,000 | 942,462 | |||||||
1,951,415 | |||||||||
8 Copies of interim results
Copies of the interim results can be obtained from the website www.premiergoldresources.com. From this site you may access our financial reports and presentations, recent press releases and details about the company and its operations.
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