Half Yearly Report

27 November 2015

NAMIBIAN RESOURCES PLC

RESULTS FOR THE SIX MONTHS ENDED 31 AUGUST 2015

Namibian Resources Plc (the "Company") announces its unaudited interim results for the six months ended 31 August 2015.

A copy of the interim financial statements of the Company will be available on the Company's website http://www.namibianresources.com/, along with a copy of this announcement.

CHAIRMAN'S STATEMENT

It is with great regret that I have to report the death of the Company's former Chairman, Lord Sheppard of Didgemere, during the period under review. The Directors miss his help and advice.

Operations

Production at the Group's Sonnberg diamond mine is not expected to re-commence. The carrying value of the mobile and fixed plant was impaired down to its estimated realisable value in previous periods. This has been adjusted in Sterling terms for the depreciation of the Namibian Dollar, although ownership of the plant has been transferred from Sonnberg to the Company. Since the end of the period, a contract has been signed for the sale of certain mobile plant with receipts over a period, at a price materially equal to its carrying value.

Reference has been made previously to the liability of our subsidiary company, Sonnberg Diamonds Namibia (Pty) Limited for rehabilitation of the area formerly mined. Although the quantum has not been agreed, the Company intends to commence rehabilitation work as soon as a substantial VAT refund is received from the Namibian authorities. The estimated cost has been provided in the accounts.

Financial

During the period the Group reports a loss for the period of £52,314 (2014 interim loss: £86,942).

During the period under review, 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. Pending realisations from plant disposals I am continuing to provide financial support by way of unsecured, interest free loans, as set out in Note 12. The independent directors, David Johnson and Michael Solomon consider, having consulted with Grant Thornton UK LLP, the Company's nominated adviser, that the terms of these loans are fair and reasonable insofar as the Company's shareholders are concerned.

Future prospects

The Company remains involved in evaluating and negotiating potential acquisitions as discussed in the last Annual Report and I hope to be in a position to give further details in the near future.

As the current share price is materially below par, a reduction in the par value will be required to facilitate any transaction involving the issue of new shares, and the requisite resolutions will be put to shareholders in due course.

Brian Moritz

(Chairman)

27 November 2015 

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE SIX MONTHS ENDED 31 AUGUST 2015

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 31 AUGUST 2015

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE SIX MONTHS ENDED 31 AUGUST 2015

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED 31 AUGUST 2015

1. Reporting entity

Namibian Resources plc (the "Company") is a company domiciled in England and Wales. The condensed consolidated interim financial statements of the Company as at and for the six months ended 31 August 2015 comprise the Company and its subsidiary (together referred to as the "Group"). The Group is primarily involved in the exploration and exploitation of diamonds in Namibia.

2. Basis of preparation

(a) Statement of compliance

This condensed consolidated interim financial report has been prepared in accordance with IAS 34 Interim Financial Reporting. Selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in financial performance and position of the Group since the last annual consolidated financial statements as at and for the year ended 28 February 2015. This condensed consolidated interim financial report does not include all the information required for full annual financial statements prepared in accordance with International Financial Reporting Standards.

This condensed consolidated interim financial report was approved by the Board of Directors on 27 November 2015.

(b) Judgements and estimates

Preparing the interim financial report requires Management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.

In preparing this condensed consolidated interim financial report, significant judgements made by Management in applying the Group's accounting policies and key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements as at and for the year ended 28 February 2015.

3. Significant accounting policies

The accounting policies applied by the Group in this condensed consolidated interim financial report are the same as those applied by the Group in its consolidated financial statements as at and for the year ended 28 February 2015.

4. Financial instruments

Financial risk management

The Group's financial risk management objectives and policies are consistent with those disclosed in the consolidated financial statements as at and for the year ended 28 February 2015. 

5. Segment information

The Group considers that it operates in a single geographical and business segment.

6. Seasonality of operations

The Group is not considered to be subject to seasonal fluctuations.

7. Intangible assets

Intangible assets comprise the fair value of mineral exploration rights acquired and the cost of explorations studies.

8. Property, plant and equipment

Acquisitions and disposals

During the six months ended 31 August 2015 the Group acquired no assets (six months ended 31 August 2014: £nil, twelve months ended 28 February 2015: £nil).

No asset disposals occurred during the interim period (six months ended 31 August 2014: £nil, twelve months ended 28 February 2015: £nil).

9. Trade and other receivables

Trade receivables and other receivables are stated at their nominal values less allowances for non-recoverability.

10. Share capital and reserves

Issues of ordinary shares

On 13 March 2015, the Company capitalised £639,600 of interest free loans advanced by directors and former directors and their associates by the issue of 13,465,263 ordinary shares of 1p each at 4.75p per share.

Dividends

No dividends were declared or paid in the six months ended 31 August 2015 (period ended 31 August 2014: £nil, year ended 28 February 2015 £nil).

11. Trade and other payables

There is no material difference between the fair value of trade and other payables and their book value.

12. Related parties

During the six months ended 31 August 2015 the Company received a loan from B M Moritz of £25,000 (six months ended 31 August 2014: £nil, twelve months ended 28 February 2015: £6,000). The balance owed to B M Moritz at the period end was £31,000 (31 August 2014: £208,200, twelve months ended 28 February 2015: £214,200). The loan is unsecured and interest free and with no repayment terms. Mr Moritz is a director of the Company and a substantial shareholder.

Out of the total of 13,465,263 ordinary shares issued at 4.75p per share on 13 March 2015, 4,383,158 ordinary shares were issued to B M Moritz, a director of the Company, in settlement of loans of £208,200, 8,976,842 ordinary shares were issued to a former director, Lord Sheppard of Didgemere, in settlement of loans of £426,400, and 105,263 ordinary shares were issued to a former director, A C A Carlton, in settlement of loans of £5,000.

Enquiries: