14th Mar 2016 14:30
14 March 2016
Nyota Minerals Limited
("Nyota" or the "Company")
INTERIM RESULTS
Nyota Minerals Limited ('Nyota' or the 'Company') is pleased to announce its interim results for the six month period ended 31 December 2015.
REVIEW AND RESULTS OF OPERATIONS
Ivrea Nickel-Copper Project, Italy
70% owned by Nyota
The Ivrea project is focused on the evaluation of that part of the Ivrea Gabbroic Complex that hosts a number of small nickel mines that operated intermittently between the mid‐1800s and early 1900s, with some being brought back into operation between 1937 and 1949. All of them are typical of the lode type, high grade underground style of the time.
Project Progress
The emphasis during the period was on the interpretation and follow-up of the airborne survey data. Fieldwork becomes impractical from October / November due to the winter weather, and no discretionary spending was committed to in the fourth calendar quarter.
Technical Overview
An airborne electromagnetic and magnetic survey was undertaken in May / June over nine target areas comprising a total of 431 line kilometres. The steep topography in all areas necessitated terrain clearances significantly higher than optimal, which impacted on the efficacy of the survey.
A strike extensive conductor was defined in the Alpe di Laghetto survey block with a second strong conductor with a short strike length offset to its west. Less extensive conductors were found on the western side of the Fej block and at Gula. No conductors were found in a number of the target areas, each of which contain at least one historic nickel mine. This is attributed to the absence of conductive massive sulphides either due to their being mined-out or the sulphides are disseminated in nature.
The highest priority target is the Alpe di Laghetto target. In this area the mafic intrusive complex, as mapped at surface, correlates with a strong, positive magnetic anomaly (left hand image in Figure 1) coincidental with which is a conductive trend extending for approximately 5km (right hand image).
http://www.rns-pdf.londonstockexchange.com/rns/0322S_-2016-3-14.pdf
Along the eastern flank of the mafic intrusive / magnetic anomaly is a broad and strike extensive conductive trend that may represent one or more stratigraphic conductors (T3, 4, 5 & 6 in Figure 1) either at the contact or within the surrounding host rock (Kinzingite).
The strongest EM anomaly in the entire survey is however observed on the western boundary of the mapped mafic complex, between the Alpe di Laghetto and La Balma mine workings (T1 in Figure 1). It comprises of a conductor that extends for approximately 100m in a north-south direction and plunges / dips to the east.
It is self-evident that the coincidence of geophysical anomalies and old mines is significant. Furthermore, follow up fieldwork has identified sulphide minerals and their indicators at localities away from the old mines but where the VTEM survey shows there to be an anomalous conductor.
An archive search and data compilation undertaken during the period contributed further information, including fieldwork reports from the 1980's for the Alpe di Laghetto and La Balma target areas. Although no drilling was undertaken during this time, a modest ground geophysical survey and extensive geochemical sampling confirm the anomalous trend identified by Nyota's work and provide more information on the prospectivity.
It is important to note that, in all cases, conductors that could be associated with sulphides could also be magnetite rich layers within the layered complex or graphitic banding in the Kinzingite host rock.
Nyota intends detailed ground geophysical surveys (magnetics, EM and possibly IP) to precede the siting of drill holes to test the sources of the responses. This will verify the targets, and provide better data for interpretation of the location, depth and dip of the conductive sources so that they can be drill tested effectively and efficiently.
Applications made to modify existing license areas based on the results of the survey are pending. The Conference (public meeting) to consider and, if there are objections, to recommend the issuance of the revised permits is scheduled for early April 2016. These areas include the anomalous trend at Alpe di Laghetto.
NEW BUSINESS OPPORTUNITIES
In a Chairman's statement released at the Company AGM held on 30 November 2015, it was noted that given the continuing difficulty in sourcing new equity funds for resource projects the Company would consider investments in other business sectors. Since then the Company has evaluated several potential opportunities.
CORPORATE
On 16 July 2015 the Company issued 545,454,545 Shares at an issue price of £0.00055 (0.055 pence) (approximately A$600,000) to raise up to £300,000 (before costs) through a placement to institutional investors.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE HALF-YEAR ENDED 31 DECEMBER 2015
Half-year Ended | Half-year Ended | |||
31 Dec 2015 | 31 Dec 2014 | |||
Notes | $ | $ | ||
Revenue from continuing operations | ||||
Other revenue | 151 | 4,246 | ||
Other income - foreign exchange gains | 11,352 | 70,678 | ||
Other expenses from continuing operations | ||||
Administration | (212,636) | (556,213) | ||
Exploration and evaluation expensed | (256,986) | (549,068) | ||
Impairment of exploration and evaluation assets | 2(a) | - | (750,000) | |
Impairment of available-for-sale assets | (122,963) | (345,303) | ||
Loss on sale of available-for-sale assets | - | (361,131) | ||
Project generation costs | - | (31,309) | ||
Loss before income tax | (592,585) | (2,518,100) | ||
Income tax expense | - | - | ||
Loss for half-year from continuing operations |
(581,082) |
(2,518,100) | ||
Loss for the half-year after tax |
|
(581,082) |
(2,518,100) | |
Other comprehensive expense / income | ||||
Items that may be reclassified to profit and loss: Changes in fair value of available-for-sale financial assets, net of tax |
- |
26,167 | ||
Exchange differences on translation of foreign operations |
8,035 |
181,405 | ||
Items that will not be subsequently reclassified to profit and loss: Reclassification of fair value adjustments of available-for-sale financial assets to profit and loss |
71,782 |
345,303 | ||
Other comprehensive income for the half-year | 79,817 | 552,875 | ||
Total comprehensive income/(loss) for the half-year |
(501,265) |
(1,965,225) | ||
Total comprehensive income/(loss) for the half year attributable to members of Nyota Minerals Limited |
(501,265) |
(1,965,225) | ||
Loss per share from continuing operations | ||||
Basic loss per share | (0.004) | (0.003) | ||
Diluted loss per share | (0.004) | (0.003) |
The above consolidated statement of comprehensive income should be read in conjunction with the accompanying notes.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2015
31 Dec 2015 | 30 June 2015 | |||
Note | $ | $ | ||
ASSETS | ||||
Current assets | ||||
Cash and cash equivalents | 201,032 | 106,280 | ||
Trade and other receivables | 37,406 | 140,830 | ||
Available-for-sale assets | 31,934 | 83,115 | ||
Total current assets |
270,372 | 330,225 | ||
Non-current assets | ||||
Property, plant and equipment | - | 7,327 | ||
Exploration and evaluation expenditure | 2 | 287,500 | 287,500 | |
Total non-current assets |
287,500 | 294,827 | ||
Total assets |
557,872 | 625,052 | ||
LIABILITIES | ||||
Current liabilities | ||||
Trade and other payables | 116,181 | 245,600 | ||
Total current liabilities |
116,181 | 245,600 | ||
Total liabilities |
116,181 | 245,600 | ||
Net assets |
441,691 | 379,452 | ||
EQUITY | ||||
Contributed equity | 4 | 182,811,119 | 182,247,615 | |
Reserves | 6,745,869 | 6,666,052 | ||
Accumulated losses | (189,115,297) | (188,534,215) | ||
Total equity |
441,691 | 379,452 |
The above consolidated statement of financial position should be read in conjunction with the accompanying notes.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR HALF-YEAR ENDED 31 DECEMBER 2014
Attributable to the owners of Nyota Minerals Limited | |||||
Contributed equity | Accumulated losses | Reserves | Total equity | ||
$ | $ | $ | $ | ||
Balance 1 July 2015 | 182,247,615 | (188,534,215) | 6,666,052 | 379,452 | |
Loss for the half-year Other comprehensive income for the half-year |
-
- |
(581,082)
- |
-
79,817 |
(581,082)
79,817 | |
Total comprehensive loss for the half-year | - | (581,082) | 79,817 | (501,265) | |
Transactions with equity holders in their capacity as equity holders: | |||||
Shares issued Capital raising costs |
| 593,163 (29,659) | - - | - - | 593,163 (29,659) |
563,504 |
- |
- | 563,504 | ||
Balance at 31 December 2015 | 182,811,119 | (189,115,297) | 6,745,869 | 441,691 | |
Balance 1 July 2014 | 185,698,880 | (185,493,030) | 6,127,837 | 6,333,687 | |
Loss for the half-year Other comprehensive income for the half-year |
-
- |
(2,518,100)
- |
-
552,875 |
(2,518,100)
552,875 | |
Total comprehensive loss for the half-year | - | (2,518,100) | 552,875 | (1,965,225) | |
Transactions with equity holders in their capacity as equity holders: | |||||
Employee share plan shares paid up Capital reduction |
| 53,207 (3,688,287) |
- - | - - | 53,207 (3,688,287) |
(3,635,080) | - | - | (3,635,080) | ||
Balance at 31 December 2014 | 182,063,800 | (188,011,130) | 6,680,712 | 733,382 | |
The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR HALF-YEAR ENDED 31 DECEMBER 2015
Half-year Ended | Half-year Ended | |||
31 Dec 2015 | 31 Dec 2014 | |||
$ | $ | |||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||
Payments to suppliers and employees | (614,444) | (1,148,109) | ||
Receipts from customers | 126,155 | - | ||
Interest received | 151 | 4,246 | ||
Net cash flow used in operating activities |
(488,138) |
(1,143,863) | ||
CASH FLOW FROM INVESTING ACTIVITES | ||||
Payments for plant and equipment | - | (3,792) | ||
Project generation payments | - | (31,309) | ||
Sale of associates | - | 1,305,224 | ||
Net cash flow from investing activities |
- |
1,270,123 | ||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||
Proceeds from share issues | 593,163 | - | ||
Capital raising costs | (29,659) | - | ||
Net cash flow from financing activities |
563,504 |
- | ||
Net increase in cash and cash equivalents |
75,366 |
126,260 | ||
Cash and cash equivalents at the beginning of the half-year |
106,280 |
511,717 | ||
Effect of exchange rate changes on cash and cash equivalents |
19,386 |
70,678 | ||
Cash and cash equivalents at the end of the half-year |
201,032 |
708,655 |
The above consolidated statement of cash flow should be read in conjunction with the accompanying notes.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2015
1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
Basis of preparation This condensed consolidated interim financial report for the half-year reporting period ended 31 December 2015 is a general purpose financial statement prepared in accordance with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Act 2001. The interim financial report has been prepared on a historical cost basis. The Company is domiciled in Australia and all accounts are presented in Australian dollars, unless otherwise stated. |
This condensed consolidated interim financial report does not include all the notes of the type normally included in an annual financial report. Accordingly, this report is to be read in conjunction with the annual report for the year ended 30 June 2015 and any public announcements made by Nyota Minerals Limited during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001. |
The accounting policies adopted are consistent with those of the previous financial year and corresponding interim reporting period unless otherwise stated.
Going Concern The Directors have prepared cash projections showing the need to raise additional funds to finance the Group's proposed minimum exploration work programme and working capital requirements for the next twelve months. The Group's ability to continue as a going concern while meeting its preferred minimum exploration work programme is dependent upon the Group being successful in completing a capital raising and/or asset sale and/or joint venture agreement in the next 12 months. The Directors have mitigated this risk by reducing the Group's corporate overheads and exploration expenditure on the Group's projects where possible. However there can be no guarantee that sufficient funds can be raised or that the funds raised will meet the Group's requirements. Failure to raise the required funds will result in the Group failing to meet its proposed exploration work programme and working capital requirements. As a result of these matters, there is a material uncertainty that may cast significant doubt on whether the Group will continue as a going concern and, therefore, whether it will realise its assets and settle its liabilities and commitments in the normal course of business and at the amounts stated in the financial report. However, the directors believe that the Group will be successful in the above matters and, accordingly, have prepared the financial report on a going concern basis. The financial statements do not include the adjustments that would result if the group was unable to continue as a going concern. |
Significant Judgements and Estimates In preparing this half-year financial report the significant judgements made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those applied to the consolidated financial report for the year ended 30 June 2015.
Adoption of new and revised accounting standards In the half-year ended 31 December 2015 the Directors have reviewed all of the new and revised Standards and Interpretations issued by the AASB that are relevant to the Group's operations and effective for annual reporting periods beginning on or after 1 July 2015.
It has been determined by the Directors that there is no impact, material or otherwise, of the new Standards and Interpretations on the Group's business and therefore, no change is necessary to Group accounting policies.
The Directors have also reviewed all new Standards and Interpretations that have been issued but are not yet effective for the half year ended 31 December 2015. As a result of this the Directors have determined that there is no impact, material or otherwise, of the new and revised standards and interpretations on the Group's business and, therefore, no change is necessary to the Group's accounting policies. |
2 Exploration and evaluation expenditure
Six months to | Twelve months to | |
31 Dec 2015 | 30 June 2015 | |
$ | $ | |
Opening balance |
287,500 | 1,000,000 |
Additions | - | 287,500 |
Disposals via deconsolidation of subsidiaries | - | (250,000) |
Impairment charge - Ethiopia | - | (750,000) |
Closing balance | 287,500 | 287,500 |
(a) Impairment charge - Ethiopia
In the period ended 31 December 2014 the Board formed the view that the value of the Group's then remaining Ethiopian exploration assets, Northern Blocks, should be further impaired to a carrying value of $250,000. An impairment charge of $750,000 was raised at that time.
Since 31 December 2014 the Group was advised that its efforts to be awarded a mining licence on one of its Ethiopian tenements were rejected by the Ethiopian government. Subsequently, Nyota failed to raise sufficient investor interest in providing capital to complete its work program for the remaining Ethiopian tenements planned for the first half of 2015. As a result at the end of March 2015 the Company decided that it could not continue to provide financial support for those Ethiopian subsidiaries that held these tenements. On 30 April 2015 the Company announced that it had ceased funding its Ethiopian subsidiaries and had withdrawn from the country. These subsidiaries were deconsolidated from the Group's financial statements as at 30 June 2015.
3 Segment information
The Group has adopted AASB 8 Operating Segments which requires operating segments to be identified on the basis of internal reports about components of the Group that are reviewed by the chief operating decision-maker in order to allocate resources to the segment and to assess its performance.
The Board reviews internal reports prepared as consolidated financial statements and strategic decisions of the Group are determined upon analysis of these internal reports. During the period the Group operated predominately in one business and geographical segment, being the resources sector in Italy. Accordingly under the management approach outlined only one operating sector has been identified and no further disclosures are required in the notes to the consolidated financial statements.
4 Equity securities issued
(a) Movements in equity securities during the half-year period were:
Date | Details | Number of shares |
$ | |
Half-Year 31 December 2015 | ||||
Fully paid ordinary shares | ||||
1/7/2015 | Opening balance | 957,149,127 | 182,247,615 | |
|
Share issue Capital raising costs |
545,454,545 - |
593,163 (29,659) | |
31/12/2015 | Balance | 1,502,603,672 | 182,811,119 | |
Year ended 30 June 2015 | ||||
Fully paid ordinary shares | ||||
1/7/2014 | Opening balance | 882,149,127 | 185,698,880 | |
|
Employee share loans paid up Capital reduction Project acquisition Less transactions costs |
- - 75,000,000 - |
53,207 (3,688,287) 187,500 (3,685) | |
30/6/2015 |
Balance |
957,149,127 |
182,247,615 | |
4 Equity securities issued
(b) Options on issue
Number of options 31 Dec 2015 | Number of options 30 June 2015 | ||
Employee options exercisable at $0.35 on or before 31 December 2015 |
- |
1,000,000 | |
Options exercisable at GBP0.001 on or before 1 March 2017 | 27,272,727 |
- | |
27,272,727 |
1,000,000 | ||
5 Contingencies / commitments
(a) Contingent liabilities
In December 2013 Nyota completed the sale of 75% and then in September 2014 a further 25% of its Ethiopian subsidiary, Kefi Minerals Ethiopia Ltd (KME). As part of this sale the Company provided warranties to the purchaser of KME, Kefi Minerals Ltd, on the financial and commercial affairs of KME normal for this type of transaction and a specific indemnification against claims that arise directly or indirectly as a result of any action by the Company or any of its subsidiaries before the date of completion. Tax warranties given expire 30 December 2019, while a warranty in connection with the liquidation of Yubdo Platinum and Gold Development Plc has no time restriction. Nyota is not aware of any existing liability in relation to these warranties.
As at 31 December 2015, the Group remains a guarantor to the landlord of its previous London office that has been sub-let by Nyota for the balance of the lease period. At half-year end this guarantee totalled £60,000 ($120,000) reducing to nil by the end of the lease period in August 2016.
Apart from the above the Group does not have any known contingent liabilities as at 31 December 2015 (30 June 2015: Nil).
(b) Commitments
As at period end the Company has commitments in relation to sub-let office space in West Perth that total $33,676 for the period through to the end of the sub-lease term on 30 November 2016.
6. Subsequent events
There are no matters or circumstances that have arisen since 31 December 2015 that may significantly affect operations, results or state of affairs of the group in future financial years except:
· On 22 January 2016 the Company completed the placement of 375,000,000 ordinary shares at an issue price of GBP0.005 to raise GBP187,500 (AUD387,400) before issue costs. The funds were raised to provide general working capital, to advance the Company's current exploration activities and to consider new project acquisition opportunities.
**ENDS**
For further information please visit www.nyotaminerals.com or contact:
Richard Chase | Nyota Minerals Limited Chief Executive Officer | +61 (0) 8 9324 2955
|
Michael Cornish Roland Cornish | Beaumont Cornish Limited Nominated Advisor and Joint Broker
| +44 (0) 207 628 3396 |
Rupert Williams Jeremy Woodgate
| Smaller Company Capital
| +44 (0) 20 3651 2912
|
Neither the contents of the Company's website nor the contents of any website accessible from hyperlinks on the Company's website (or any other website) is incorporated into, or forms part of, this announcement.
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Nyota Minerals