Interim Results

Interim results

10 September 2014

China Africa Resources plc

("China Africa Resources" or the "Company")

China Africa Resources plc today announces its unaudited interim results for the six months ended 30 June 2014.

For further information contact:

Rod Webster, Chief Executive Officer Weatherly International +44 (0)207 917 2989

Kevin Ellis, Company Secretary

Samantha Harrison, RFC Ambrian +44 (0)207 634 4700

Nominated Advisors

Tim Blythe Blytheweigh +44 (0)207 138 3204

Halimah Hussain

Chairman's statement

I am pleased to present the report and accounts for China Africa Resources plc results for the half year ended 30 June 2014.

Financial Results

During the period the group made a loss of US$0.4 million. The losses during the period are principally the costs incurred in managing the head office in the UK augmented by an exchange loss on sterling and Namibian deposits. The costs of progressing the company's prefeasibility study at the Berg Aukas mine were capitalised to evaluation costs and amounted to US$0.1 million in the half year.

At 30 June 2014 the Company had US$1.5 million in cash reserves.

Review of the period

During the half year we were able to establish commercial terms for the purchase of concentrates from Berg Aukas and complete the Pre-feasibility study of the Berg Aukas mine in Namibia.

Key data from the Pre-feasibility study:

*Reserves (JORC) plus minable inventory

**Net of lead and silver credits

The Pre-feasibility study of the Berg Aukas mine demonstrates it to be a viable project. The project has pre-tax Net Present Values (NPVs) using a discount rate of 10%of between US$49 million and US$51 million (best-estimated value), dependent on the processing option selected. The post tax NPVs is US$29m on best-estimated value and pre-tax internal Rate of Return (IRR) of 25% in real US$ terms.

Minxcon, who prepared the independent financial evaluation stated that the under the current economic environment the Project is robust and has recommended that the project continue to advance.

The Board is currently reviewing options to fund the next stage of development.

We are also continuing to seek opportunities to enlarge the Lead and Zinc asset base of CAR and grow the Company for the benefit of our shareholders.

Cungen Ding

Chairman of the Board

10 September 2014

Consolidated income statement

for the period 1 January to 30 June 2014

Consolidated statement of comprehensive income

for the period 1 January to 30 June 2014

Condensed consolidated statement of financial position

as at 30 June 2014

Condensed consolidated statement of changes in equity

for the period 1 January to 30 June 2014

Condensed consolidated cash flow statement

for the period 1 January to 30 June 2014

Notes to the condensed consolidated financial statements

for the period 1 January to 30 June 2014

1. Basis of preparation

The unaudited condensed consolidated interim financial statements have been prepared using the recognition and measurement principles of International Accounting Standards, International Reporting Standards and Interpretations adopted for use in the European Union (collectively EU IFRSs). The Group has not elected to comply with IAS 34 "Interim Financial Reporting" as permitted. The principal accounting policies used in preparing the interim financial statements are unchanged from those disclosed in the Group's Annual Report for the year ended 31 December 2013 and are expected to be consistent with those policies that will be in effect at the year end. 

The condensed financial statements for the six months ended 30 June 2014 and 30 June 2013 are un-reviewed and unaudited. The comparative financial information does not constitute statutory financial statements as defined by Section 435 of the Companies Act 2006. The comparative financial information for the year ended 31 December 2013 is not the company's full statutory accounts for that period. A copy of those statutory financial statements has been delivered to the Registrar of Companies. The auditors' report on those accounts was unqualified, did not include references to any matters to which the auditors drew attention by way of emphasis without qualifying their report and did not contain a statement under section 498(2)-(3) of the Companies Act 2006.

2. EARNINGS per share

The calculation of the basic earnings per share is based on the profit attributable to ordinary shareholders divided by the weighted average number of shares in issue during the period. Diluted earnings per share are not stated as the dilution would relate only to share options and would not be material.

Notes to the consolidated financial statements

for the period 1 January to 30 June 2014

3. FINANCE COSTS