20th Sep 2013 07:00
20 September 2013
SOVEREIGN MINES OF AFRICA PLC
("SMA" or "the Company")
Interim Results for the six months ended 30 June 2013
Sovereign Mines of Africa PLC (AIM:SML), the gold mining exploration Company with properties in the Republic of Guinea in West Africa, today announces its Interim Results for the six months ended 30 June 2013.
Operational Highlights
· Third phase exploration drilling programme completed at the Company's Mandiana Magana project
· Encouraging third phase drilling results announced
· Consultants commissioned to produce a maiden inferred resource for the two principal zones at Yagbelen and Wyondjian
Funding Highlights
· In January 2013 £1.25 million of additional working capital was raised from institutional and other investors
· In June 2013 £398,000 raised from the disposal of 2 million shares in Praetorian Resources Limited
For further information please contact:
Sovereign Mines of Africa PLC | |
David Pearl F.C.A. - Chairman | +353 696 8961 |
John Barry - Exploration Director | +353 8 7669 5608 |
Nathan Steinberg - Finance Director | +44 20 7269 7680 |
Shore Capital - Nominated Adviser & Broker | |
Toby Gibbs / Bidhi Bhoma - Corporate Finance | |
Jerry Keen - Corporate Broking | +44 20 7408 4090 |
Square1 Consulting Limited | |
David Bick / Mark Longson | +44 20 7929 5599 |
Newgate Threadneedle | |
Graham Herring / Richard Gotla | +44 20 7653 9858 |
CHAIRMAN'S STATEMENT
The Company reported a net loss of £697,158 for the six-month period ended 30 June 2013.
On the 22 January 2013, additional working capital of £1.25 million was raised through a placing of 41,666,667 new Ordinary shares with institutional and other investors at a price of 3p per share.
In May the third phase of our exploration drilling programme at the Mandiana Magana gold project took place.
On the 28 June the Company raised a further £398,000 from the disposal of 2 million shares in Praetorian Resources Limited, retaining a holding of 200,000 shares. The proceeds of this sale were received shortly after the period-end.
On 17 September 2013, we announced encouraging third phase drilling results. accordingly, SRK (Cardiff) have been commissioned to produce a maiden inferred resource for the two principal zones at Yagbelen and Wyondjian. Results of their work should be available next month.
David B. Pearl FCA
Chairman
20 September 2013
SOVEREIGN MINES OF AFRICA PLC
UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Six months ended 30 June 2013
Notes |
| |||||
Six months ended 30/06/13 Unaudited £ | Six months ended 4/07/12 Unaudited £ | Year ended 31/12/12 Audited £ | ||||
Administrative expenses - (operating loss) | (146,816) | (181,288) | (477,410) | |||
Loss on financial assets at fair value | (552,200)
| - | (110,000) | |||
Interest receivable | 1,858 | 2,190 | 3,726 | |||
Loss on ordinary activities before taxation | (697,158) | (179,098) | (583,684) | |||
Tax on loss on ordinary activities | - | - | - | |||
Loss for the financial period | (697,158) | (179,098) | (583,684) | |||
Other comprehensive income | - | - | - | |||
Total comprehensive income for the period | (697,158) | (179,098) | (583,684) | |||
Loss for the period and Total comprehensive loss attributable to: | ||||||
Owners of the parent | (697,158) | (179,098) | (583,684) | |||
Non-controlling interest | - | - | - | |||
(697,158) | (179,098) | (583,684) | ||||
Loss per ordinary share (pence) - From continuing operations: basic and diluted | 4 | (0.30)p | (0.11)p | (0.32)p | ||
SOVEREIGN MINES OF AFRICA PLC
UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 June 2013
As at | As at | As at | |||
30/06/13 | 4/07/12 | 31/12/12 | |||
Note | Unaudited | Unaudited | Audited | ||
£ | £ | £ | |||
FIXED ASSETS |
| ||||
Intangible assets | 3,903,545 | 2,585,376 | 2,804,835 |
| |
| |||||
| |||||
CURRENT ASSETS |
| ||||
Financial assets at fair value through profit and loss | 39,800 | 1,100,000 | 990,000 |
| |
Trade and other receivables | 398,000 | - | - |
| |
Cash and cash equivalents | 238,592 | 891,186 | 349,618 |
| |
| |||||
676,392 | 1,991,186 | 1,339,618 |
| ||
CURRENT LIABILITIES |
| ||||
Trade and other payables | (72,570) | (102,683) | (75,160) |
| |
| |||||
NET CURRENT ASSETS | 603,822 | 1,888,503 | 1,264,458 |
| |
| |||||
NET ASSETS | 4,507,367 | 4,473,879 | 4,069,293 |
| |
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EQUITY ATTRIBUTABLE TO EQUITY |
| ||||
HOLDERS OF THE COMPANY |
| ||||
Share capital | 2,363,588 | 1,946,922 | 1,946,922 |
| |
Share premium account | 4,871,074 | 4,152,508 | 4,152,508 |
| |
Reconstruction reserve | (586,100) | (586,100) | (586,100) |
| |
Retained earnings | (2,141,195) | (1,039,451) | (1,444,037) |
| |
| |||||
TOTAL EQUITY | 4,507,367 | 4,473,879 | 4,069,293 |
| |
| |||||
Net assets per share (pence) - basic | 5 | 2.37p | 2.30p | 2.09p |
SOVEREIGN MINES OF AFRICA PLC
UNAUDITED CONSOLIDATED CASH FLOW STATEMENT
Six months ended 30 June 2013
Six months | Six months | Year ended | ||
to 30/06/13 | to 4/07/12 | 31/12/12 | ||
| Unaudited | Unaudited | Audited | |
£ | £ | £ | ||
Net cash outflow from operating activities | 3 | (149,406) | (128,824) | (333,616) |
Cash flows from investing activities | ||||
Purchase of intangible fixed assets | (1,098,710) | (822,127) | (1,160,439) | |
(1,098,710) | (822,127) | (1,160,439) | ||
Cash flows from financing activities | ||||
Net proceeds from issue of share capital | 1,135,232 | 620,000 | 620,000 | |
Interest received | 1,858 | 2,190 | 3,726 | |
1,137,090 | 622,190 | 623,726 | ||
Net increase in cash and cash equivalents | (111,026) | (328,761) | (870,329) | |
Cash and cash equivalents at beginning of period | 349,618 | 1,219,947 | 1,219,947 | |
Cash and cash equivalents at end of period | 238,592 | 891,186 | 349,618 | |
|
SOVEREIGN MINES OF AFRICA PLC
UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Six months ended 30 June 2013
Share capital | Share premium | Reconstruction reserve | Retained earnings | Total | |
£ | £ | £ | £ | £ | |
At 1 January 2012 | 1,656,922 | 2,722,508 | (586,100) | (860,353) | 2,932,977 |
Loss and total comprehensive income for six months ended 4 July 2012 | - | - | - |
(179,098) |
(133,612) |
Issue of shares, net of share issue costs | 290,000 | 1,430,000 | - | - | 1,720,000 |
At 4 July 2012 | 1,946,922 | 4,152,508 | (586,100) | (1,039,451) | 4,473,879 |
Loss and total comprehensive income for six months ended 31 December 2012 |
- |
- |
- |
(404,586) |
(404,586) |
Issue of shares, net of share issue costs |
- |
- |
- |
- |
- |
At 31 December 2012 | 1,946,922 | 4,152,508 | (586,100) | (1,444,037) | 4,069,293 |
Loss and total comprehensive income for six months ended 30 June 2013 | - | - | - | (697,158) | (697,158) |
Issue of shares, net of share issue costs | 416,666 | 718,566 | - | - | 1,135,232 |
At 30 June 2013 | 2,363,588 | 4,871,074 | (586,100) | (2,141,195) | 4,507,367 |
SOVEREIGN MINES OF AFRICA PLC
Notes to the interim consolidated financial information
Six months ended 30 June 2013
1. GENERAL
The interim financial information for the six month period ended 30 June 2013 are unaudited and were approved by the Directors of the Company on 20 September 2013. The condensed financial information set out above does not constitute statutory accounts within the meaning of Section 434 of the Companies Act 2006.
The financial information contained in this report in respect of the annual financial statements for the year ended 31 December 2012 has been extracted from the report and financial statements for that year which have been filed with the Registrar of Companies. The report of the auditors on those accounts did not contain a statement under section 498(2) or (3) of the Companies Act 2006 and was not qualified.
The interim financial information is unaudited and has not been reviewed by the auditors.
The Company's operations are not subject to seasonality or cyclicality.
No dividend has been declared or paid in this interim period.
2. ACCOUNTING POLICIES
The principal accounting policies and methods of computation have remained unchanged from those used in the preparation of the Company's 2012 annual financial statements and are expected to be used for the Company's 2013 annual financial statements.
3. CASH FLOWS FROM OPERATING ACTIVITIES
Six months | Six months | Year ended | |
to 30/06/13 | to 4/07/12 | 31/12/12 | |
Unaudited | Unaudited | Audited | |
£ | £ | £ | |
Loss before taxation | (697,158) | (179,098) | (583,684) |
Adjustments for: | |||
Impairment loss on intangible fixed assets | - | - | 118,853 |
Losses on financial assets at fair value | 552,200 | - | 110,000 |
Interest income | (1,858) | (2,190) | (3,726) |
(146,816) | (181,288) | (358,557) | |
Decrease in financial assets at fair value | 398,000 | - | - |
Increase in receivables | (398,000) | - | - |
Increase/(decrease) in payables | (2,590) | 52,464 | 24,941 |
Net cash used in operating activities | (149,406) | (128,824) | (333,616) |
SOVEREIGN MINES OF AFRICA PLC
Notes to the interim consolidated financial information
Six months ended 30 June 2013
4. LOSS PER SHARE
Six months | Six months | Year ended | ||
to 30/06/13 | to 4/07/12 | 31/12/12 | ||
| Unaudited | Unaudited | Audited | |
Weighted average number of ordinary shares in issue | 230,143,380 | 165,692,183 | 179,716,773 | |
Loss after taxation | £(697,158) | £(179,098) | £(583,684) | |
Loss per share | (0.30)p | (0.11)p | (0.32)p | |
Due to there being a loss during the period, the share options are anti-dilutive and therefore the diluted loss per share is the same as the loss per share.
5. NET ASSET VALUE PER SHARE
The "basic" net asset value per share figures are calculated on the basis of the net assets attributable to equity shareholders divided by the number of ordinary shares in issue at the relevant dates of 236,358,850 (4 July 2012: 194,692,183; 31 December 2012: 194,692,183).
6. COPIES OF INTERIM REPORT
Copies of the interim report are available to the public free of charge from the Company at 2nd Floor, New Penderel House, 283-288 High Holborn, London WC1V 7HP during normal office hours, Saturdays and Sundays excepted, for 14 days from today and are available on the website at www.sovmines.com.
Related Shares:
Sovereign Mines of Africa