18th Nov 2014 09:45
18 November 2014
NAMIBIAN RESOURCES PLC
RESULTS FOR THE SIX MONTHS ENDED 31 AUGUST 2014
CHAIRMAN'S STATEMENT
During the period under review the Company has concentrated on refurbishing its plant with a view to realising it at the most advantageous price, as well as seeking other projects which can be brought into the Group.
Operations
Operations at the Group's Sonnberg diamond mine have been discontinued, following a detailed review of its economic viability. The refurbishment of the plant has now been completed, which has underpinned its value, and a structured sale process is now in place. A decision can now be made as to future utilization, either by sale or in another project at a new location. The agreement under which Sonnberg previously mined is open to differing interpretations regarding rehabilitation costs. Sonnberg has contributed a percentage of the value of diamonds mined to a fund held by Namdeb, but the adequacy of this fund is uncertain. The directors provided a further £70,000 to cover this potential liability during the previous year, and discussions are under way with Namdeb.
Financial
During the period the Company reports a consolidated unaudited total comprehensive loss of £72,436 (2013 loss: £376,588). The figure for 2013 is shown after an impairment charge of £167,129. During the period the Company raised £146,600 by a placing of new shares, a large part of which was subscribed by me. Expenses in Namibia have been reduced to the minimum required to maintain Sonnberg Diamonds in good standing. Separate financing will be sought for new projects, which is likely to be by way of both equity and project finance.
Future prospects
Work on bringing new projects in to the Company is now accelerating, and I believe that the Company is now well placed to move forward. The initial intention was to bring in coal projects, but the market perception of coal projects in Southern Africa has mitigated against this. The directors are evaluating a small copper project in Northern Cape Province, South Africa, which could bring early positive cash flow as well as providing a stepping stone to other copper projects in that area. Also currently under consideration are a kimberlite diamond mine in South Africa and an onshore oil and gas project in West Africa. Either of these would require the publication of a new admission document, and it must be stressed that discussions remain at an early stage.
Brian Moritz (Chairman)
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED 31 AUGUST 2014
| 31-Aug-14 (unaudited) £ | 31-Aug-13 (unaudited) £ | 28-Feb-14 (audited) £ | |||||||||
Continuing operations | ||||||||||||
Revenue | - | - | - | |||||||||
Cost of sales | - | - | - | |||||||||
Gross profit | - | - | - | |||||||||
Administrative and exploration expenses | (86,633) | (93,045) | (289,974) | |||||||||
Impairment of non-current assets | - | (167,129) | (239,778) | |||||||||
Loss from operating activities | (86,633) | (260,174) | (529,752) | |||||||||
Finance income | - | - | - | |||||||||
Finance costs | (309) | (1,945) | (2,006) | |||||||||
Net finance income/(costs) | (309) | (1,945) | (2,006) | |||||||||
Loss before taxation | (86,942) | (262,119) | (531,758) | |||||||||
Taxation | - | - | - | |||||||||
Loss for the period | (86,942) | (262,119) | (531,758) | |||||||||
Other comprehensive income | ||||||||||||
Exchange translation on foreign operations | 14,506 | (114,469) | (154,150) | |||||||||
Other comprehensive income/(loss) for the period, net of tax | 14,506 | (114,469) | (154,150) | |||||||||
Total comprehensive loss for the period |
(72,436) |
(376,588) |
(685,908) | |||||||||
Loss per share - continuing operations | ||||||||||||
Basic and diluted loss per share (pence) | (0.12) | (0.42) | (0.86) | |||||||||
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 AUGUST 2014
31-Aug-14 (unaudited) £ | 31-Aug-13 (unaudited) £ | 28-Feb-14 (audited) £ | ||||||||||
Assets | ||||||||||||
Non-current assets | ||||||||||||
Intangible assets | - | - | - | |||||||||
Property, plant and equipment | 264,389 | 364,004 | 260,264 | |||||||||
264,389 | 364,004 | 260,264 | ||||||||||
Current assets | ||||||||||||
Inventories | - | - | - | |||||||||
Trade and other receivables | 49,951 | 51,819 | 49,048 | |||||||||
Cash and cash equivalents | 22,487 | 8,085 | 7,689 | |||||||||
72,438 | 59,904 | 56,737 | ||||||||||
Total assets | 336,827 | 423,908 | 317,001 | |||||||||
Equity | ||||||||||||
Equity attributable to owners of the Company | ||||||||||||
Share capital | 4,328,355 | 4,211,235 | 4,211,235 | |||||||||
Share premium | 1,050,197 | 1,027,317 | 1,027,317 | |||||||||
Currency translation reserve | 163,278 | 191,886 | 158,491 | |||||||||
Retained deficit | (5,972,090) | (5,618,942) | (5,894,867) | |||||||||
Total equity | (430,260) | (188,504) | (497,824) | |||||||||
Liabilities | ||||||||||||
Current liabilities | ||||||||||||
Trade and other payables | 697,087 | 612,412 | 744,825 | |||||||||
Provisions | 70,000 | - | 70,000 | |||||||||
767,087 | 612,412 | 814,825 | ||||||||||
Total liabilities | 767,087 | 612,412 | 814,825 | |||||||||
Total equity and liabilities | 336,827 | 423,908 | 317,001 | |||||||||
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED 31 AUGUST 2014
| 31-Aug-14 (unaudited) £ | 31-Aug-13 (unaudited) £ | 28-Feb-14 (audited) £ | |||||||||
Cash flows from operating activities | ||||||||||||
Loss for the period | (72,436) | (262,119) | (685,908) | |||||||||
Adjustments for: | ||||||||||||
Depreciation | - | 1,390 | 1,301 | |||||||||
Amortisation of intangible assets | - | - | - | |||||||||
Foreign exchange differences | (4,787) | (9,868) | 147,864 | |||||||||
Impairment of non-current assets | - | 167,129 | 239,778 | |||||||||
Net finance (income)/costs | 309 | 1,945 | 2,006 | |||||||||
(76,914) | (101,523) | (294,959) | ||||||||||
Changes in: - inventories |
- |
2,030 |
1,730 | |||||||||
- trade and other receivables | (185) | 3,241 | (8,658) | |||||||||
- trade and other payables | (47,831) | 101,975 | 237,344 | |||||||||
- provisions | - | - | 70,000 | |||||||||
Cash used in operating activities | (124,930) | 5,723 | 5,457 | |||||||||
Cash flows from investing activities | ||||||||||||
Interest paid | (309) | (1,945) | (2,006) | |||||||||
Net cash used in investing activities | (309) | (1,945) | (2,006) | |||||||||
Cash flows from financing activities | ||||||||||||
Proceeds from issue of share capital | 140,000 | - | - | |||||||||
Loans | - | - | - | |||||||||
Net cash flows from financing activities | 140,000 | - | - | |||||||||
Net increase/(decrease) in cash and cash equivalents | 14,761 | 3,778 | 3,451 | |||||||||
Cash and cash equivalents at beginning of period | 7,689 | 4,307 | 4,307 | |||||||||
Effect of foreign exchange rate changes | 37 | - | (69) | |||||||||
Cash and cash equivalents at end of period | 22,487 | 8,085 | 7,689 | |||||||||
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 31 AUGUST 2014
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 2014 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 2014. 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 17 November 2014.
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3 | Related parties
Transactions with key management personnel During the six months ended 31 August 2014 the Company received loans from Lord Sheppard of Didgemere of £nil (six months ended 31 August 2013: £63,900, twelve months ended 28 February 2014: £85,900) and B M Moritz £nil (six months ended 31 August 2013: £27,700, twelve months ended 28 February 2014: £65,700). The balances owed to the individuals at the period end were £426,400 (31 August 2013: £404,400, twelve months ended 28 February 2014: £426,400) and £208,200 (six months ended 31 August 2013: £170,200, twelve months ended 28 February 2014: £208,200) respectively. The loans are interest free and with no repayment terms. Mr Moritz is a director of the company and he and Lord Sheppard are substantial shareholders.
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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