27th Nov 2013 15:18
27 November 2013
NAMIBIAN RESOURCES PLC
RESULTS FOR THE SIX MONTHS ENDED 31 AUGUST 2013
CHAIRMAN'S STATEMENT
Since my last statement the Company has concentrated on completion of the arrangements with J&J Group which are intended to expand our mining activities in Southern Africa.
Agreement with J&J Group
On 9 May 2013 the Company signed a management agreement with Southern Goshawk Resources (Pty) Limited ("SG"), the natural resources arm of the J&J Group, a South African based investment holding and management company. Under this agreement SG has commenced management of the Company's mining assets in Southern Africa, initially the Sonnberg diamond mine in Namibia, and subsequently other mining in Southern Africa, commencing with coal mining.
Due to South African exchange control issues, the proposal that the Company should acquire, from SG, a subsidiary of SG which holds all the existing mining and exploration rights of SG by the issue of 29.9% of the share capital of the Company has had to be amended. To comply with South African rules a new subsidiary of the Company has been set up in South Africa with the Company holding 70.1% of its issued shares and SG holding 29.9%, thus mirroring the originally agreed structure. A shareholders agreement has been signed today under which SG has the right to exchange its 29.9% holding for shares in the Company when permitted to do so by South African legislation. The framework for the proposed expansion is therefore in place.
Operations and Financial Results
Production at the Company's Sonnberg diamond mine during the period remained suspended. In view of the uncertainty over the future of the Sonnberg mine a decision has been made to fully impair the residual value of the intangible assets in this period. The refurbishment of the plant is now under way, and it is believed that this will add substantially to its value. On completion of the refurbishment a decision will be made as to future utilization, either at Sonnberg or in a new location. In the latter case the directors believe that plant may be valued at materially more than the £364,004 which is its current carrying value.
During the period the Company reports a loss from operating activities, before and after tax, of £262,119 (2012 loss: £177,157), shown after the impairment charge of £167,129 (2012: nil) referred to above. After adjusting for exchange differences, the total comprehensive loss for the period, before and after tax, was £376,588 (2012 loss: £177,157). The Directors have continued to provide finance to the Company by way of loans.
Future Prospects
With the completion of the acquisition, together with a strengthened board and expanded activities, I am able to look forward to the future with confidence.
Lord Sheppard of Didgemere
(Chairman)
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED 31 AUGUST 2013
| 31-Aug-13 (unaudited) £ | 31-Aug-12 (unaudited) £ | 28-Feb-13 (audited) £ | |||||||||
Continuing operations | ||||||||||||
Revenue | - | 25,705 | 57,046 | |||||||||
Cost of sales | - | - | (131,772) | |||||||||
Gross profit | - | 25,705 | (74,726) | |||||||||
Administrative and exploration expenses | (93,045) | (202,862) | (233,711) | |||||||||
Impairment of non-current assets | (167,129) | - | (1,009,722) | |||||||||
Loss from operating activities | (260,174) | (177,157) | (1,318,159) | |||||||||
Finance income | - | - | - | |||||||||
Finance costs | (1,945) | - | (173) | |||||||||
Net finance income/(costs) | (1,945) | - | (173) | |||||||||
Loss before taxation | (262,119) | (177,157) | (1,318,332) | |||||||||
Taxation | - | - | - | |||||||||
Loss for the period | (262,119) | (177,157) | (1,318,332) | |||||||||
Other comprehensive income | ||||||||||||
Exchange translation on foreign operations | (114,469) | - | (197,472) | |||||||||
Other comprehensive (loss) for the period, net of tax | (114,469) | - | (197,472) | |||||||||
Total comprehensive loss for the period |
(376,588) |
(177,157) |
(1,515,804) | |||||||||
Loss per share - continuing operations | ||||||||||||
Basic and diluted loss per share (pence) | (0.42) | (0.33) | (2.13) | |||||||||
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 AUGUST 2013
31-Aug-13 (unaudited) £ | 31-Aug-12 (unaudited) £ | 28-Feb-13 (audited) £ | ||||||||||
Assets | ||||||||||||
Non-current assets | ||||||||||||
Intangible assets | - | 864,394 | 200,000 | |||||||||
Property, plant and equipment | 364,004 | 1,008,961 | 437,124 | |||||||||
364,004 | 1,873,355 | 637,124 | ||||||||||
Current assets | ||||||||||||
Inventories | - | 8,816 | 2,030 | |||||||||
Trade and other receivables | 51,819 | 60,429 | 55,060 | |||||||||
Cash and cash equivalents | 8,085 | 23,755 | 4,307 | |||||||||
59,904 | 93,000 | 61,397 | ||||||||||
Total assets | 423,908 | 1,966,355 | 698,521 | |||||||||
Equity | ||||||||||||
Equity attributable to owners of the Company | ||||||||||||
Share capital | 4,211,235 | 4,211,235 | 4,211,235 | |||||||||
Share premium | 1,027,317 | 1,027,317 | 1,027,317 | |||||||||
Currency translation reserve | 191,886 | 503,827 | 306,355 | |||||||||
Retained deficit | (5,618,942) | (4,215,648) | (5,356,823) | |||||||||
Total equity | (188,504) | 1,526,731 | 188,084 | |||||||||
Liabilities | ||||||||||||
Current liabilities | ||||||||||||
Trade and other payables | 612,412 | 439,624 | 510,437 | |||||||||
612,412 | 439,624 | 510,437 | ||||||||||
Total liabilities | 612,412 | 439,624 | 510,437 | |||||||||
Total equity and liabilities | 423,908 | 1,966,355 | 698,521 | |||||||||
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED 31 AUGUST 2013
| 31-Aug-13 (unaudited) £ | 31-Aug-12 (unaudited) £ | 28-Feb-13 (audited) £ | |||||||||
Cash flows from operating activities | ||||||||||||
Loss for the period | (262,119) | (177,157) | (1,318,332) | |||||||||
Adjustments for: | ||||||||||||
Depreciation | 1,390 | 19,828 | 35,178 | |||||||||
Amortisation of intangible assets | - | 35,939 | 53,891 | |||||||||
Foreign exchange differences | (9,868) | - | - | |||||||||
Impairment of non-current assets | 167,129 | - | 1,009,722 | |||||||||
Net finance (income)/costs | 1,945 | - | 173 | |||||||||
(101,523) | (121,390) | (219,368) | ||||||||||
Changes in: - inventories |
2,030 |
(4,438) |
2,007 | |||||||||
- trade and other receivables | 3,241 | (6,684) | (7,106) | |||||||||
- trade and other payables | 101,975 | 140,966 | 213,661 | |||||||||
Cash used in operating activities | 5,723 | 8,454 | (10,806) | |||||||||
Cash flows from investing activities | ||||||||||||
Interest paid | (1,945) | - | (173) | |||||||||
Net cash used in investing activities | (1,945) | - | (173) | |||||||||
Cash flows from financing activities | ||||||||||||
Proceeds from issue of share capital | - | - | - | |||||||||
Loans | - | - | - | |||||||||
Net cash flows from financing activities | - | - | - | |||||||||
Net increase/(decrease) in cash and cash equivalents | 3,778 | 8,454 | (10,979) | |||||||||
Cash and cash equivalents at beginning of period | 4,307 | 15,301 | 15,301 | |||||||||
Effect of foreign exchange rate changes | - | - | (15) | |||||||||
Cash and cash equivalents at end of period | 8,085 | 23,755 | 4,307 | |||||||||
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 31 AUGUST 2013
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 2013 comprise the Company and its subsidiary (together referred to as the "Group"). The Group primarily is involved in the exploration and exploitation of diamonds in Namibia.
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2 | Basis of preparation 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 2013. 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 2013.
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3 | Related parties
Transactions with key management personnel During the six months ended 31 August 2013 the Company received loans from Lord Sheppard of Didgemere of £63,900 (six months ended 31 August 2012: £88,422, twelve months ended 28 February 2013: £150,922) and B M Moritz £27,700 (six months ended 31 August 2012: £45,000, twelve months ended 28 February 2013: £67,500). The balances owed to the individuals at the period end were £404,400 (31 August 2012: £278,000, twelve months ended 28 February 2013: £340,500) and £170,200 (six months ended 31 August 2012: £120,000, twelve months ended 28 February 2013: £142,500) respectively. A C A Carlton advanced £5,000 during the six months ended 31 August 2013 and this amount was owed to him at the period end. The loans are interest free and with no repayment terms.
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4 | Availability of the interim results
A copy of the interim financial statement for the Company will be available on the Company's website http://www.namibianresources.com/, along with a copy of this announcement. |
Enquiries:
Brian Moritz, Director, Namibian Resources Plc
| Tel: 07976 994300 |
Colin Aaronson/Jen Clarke Grant Thornton UK LLP, Nominated Adviser | Tel: 0207 383 5100 |
Related Shares:
NBR.L