Half Yearly Report

RNS Number : 2238A

Equatorial Mining & Exploration PLC

25 September 2015

 

EQUATORIAL MINING AND EXPLORATION PLC

("EME" OR THE "COMPANY")

CHAIRMAN'S STATEMENT

FOR THE SIX MONTHS ENDED 30 JUNE 2015

I have pleasure in reporting Interim Results for the six months ended 30 June 2015.  The loss for the period reflects the exploration nature of the Company such as the investment of £112,000 in the development of its assets during this period.  The balance of expenditure has been used for the routine maintenance, administrative and public company listing expenses. 

During the period under review, modest progress was made across the 600km² coal licences under the Company's control, as the Board focussed on a fund raising exercise which would have led to a significant change in EME's capital and the development of its assets.  This was targeted at an end August completion. 

On 31 March 2015 we announced that Lagos based GTI Capital Ltd ("GTI") had acquired an 18.795% share interest in EME and that we had executed a Memorandum of Understanding with them to provide funding and know-how in support of the Company's plans.

In June, the Board commissioned Tanylag Limited, to commence exploration involving geological, geophysical and core hole drilling for the evaluation of the coal resources in license area EL7729, Afuze area of Edo State, Nigeria. The purpose of this report was to enable the Directors to prepare an open pit mine development plan.  After the six month period end in August the Directors announced a discovery of approximately 39 million tons of thermal, coal some of which being suitable for open cast mining.

At the beginning of August, the Board was told that GTI was unable to procure new investment due to challenging market conditions in Nigeria.  Since then, the Board sourced alternative funding which led to a new loan and warrant agreement, announced on the 17 September, which increases our working capital to potentially £300,000.

In the coming few months the Company plans to complete a mining lease application which will allow it to commence open cast mining via contract miners; the coal being sold to domestic customers.

During the period we raised £140,000 from the issue of new ordinary shares and reallocated shares previously issued erroneously into a newly established Employee Benefits Trust.

I look forward to announcing further developments as they arise.

N C P Nelson

Chairman

Equatorial Mining & Exploration Plc Nicholas Nelson, Executive Chairman	[e-mail]
ISDX Adviser: Alexander David Securities Ltd.
Financial PR and Investor Relations: Walbrook PR Ltd Guy McDougall Nick Rome	[phone]

EQUATORIAL MINING AND EXPLORATION PLC

UNAUDITED INCOME STATEMENT FOR THE SIX MONTHS ENDED 30 JUNE 2015

	6 Months to 30 June 2015	6 Months to 30 June 2014	Year to 31 December 2014
	GBP'000	GBP'000	GBP'000
Administrative expenses	(316)	(162)	(351)
Share-based compensation	-	-	(680)
	────────	────────	────────
Profit/(loss) from operations	(316)	(162)	(1,031)
Investment income (expense)	-	-	(1)
	────────	────────	────────
Profit/(loss) before taxation	(316)	(162)	(1,032)
Taxation	-	-	-
	────────	────────	────────
Profit/(loss) from continuing operations	(316)	(162)	(1,032)
	═══════	═══════	═══════
Earnings/(loss) per share (note 3)
Basic and diluted (pence)	(0.009)	(0.01)	(0.047)
	═══════	═══════	═══════

 EQUATORIAL MINING AND EXPLORATION PLC

UNAUDITED STATEMENT OF COMPREHENSIVE INCOME FOR THE PERIOD ENDED

30 JUNE 2015

	6 Months to 30 June 2015	6 Months to 30 June 2014	Year to 31 December 2014
	GBP'000	GBP'000	GBP'000
Profit/(loss) for the period	(316)	(162)	(1,032)
	═══════	═══════	═══════
Total comprehensive income	(316)	(162)	(1,032)
	═══════	═══════	═══════

EQUATORIAL MINING AND EXPLORATION PLC

UNAUDITED STATEMENT OF CHANGES FOR THE SIX MONTHS ENDED

30 JUNE 2015

	Share capital	Share premium	Retained earnings	Share-based compensation reserve	Investments in own shares	Total
	GBP'000	GBP'000	GBP'000	GBP'000	GBP'000	GBP'000
Balance as at 1 January 2015	273	1,638	(1,586)	198	-	523
Total recognised income and expense for the period	-	-	(316)	-	-	(316)
Cancellation of share-based compensation	-	-	-	(37)	-	(37)
Issue of new share	154	-	-	-	-	154
Arising on cancellation of shares issued on 2014	(36)	(469)	-	-	36	(469)
	───────	───────	───────	───────	───────	───────
Balance at 30 June 2015	391	1,169	(1,902)	161	36	(145)
	══════	══════	══════	══════	══════	══════
Balance as at 1 January 2014	214	926	(1,197)	161	-	104
Total recognised income and expense for the period	-	-	(162)	-	-	(162)
	───────	───────	───────	───────	───────	───────
Balance at 30 June 2014	214	926	(1,359)	161	-	(58)
	══════	══════	══════	══════	══════	══════

Investment in own shares relates to the issue of 357,400,000 ordinary shares to the Equatorial Mining Employee Benefits Trust. On 24^th October 2014, the Company announced the issue of 350,740,000 ordinary shares following the exercise of options by three of the Company's directors: Nicholas Nelson, Alyn Evans and Shane Moloney.  Mr Moloney ceased to be a director of the Company on 1^st December 2014. The exercises took place in order to improve the clarity of the Company's capital structure in preparation for a future transaction.

Following guidance received from the Company's advisers, the decision was made to reverse the issue of ordinary shares, cancel the original options and re-issue the 350,740,000 shares to an Employee Benefits Trust which had been incorporated.

EQUATORIAL MINING AND EXPLORATION PLC

UNAUDITED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2015

	As at 30 June 2015	AS at 30 June 2014	As at 31 December 2014
	GBP'000	GBP'000	GBP'000
Assets
Current assets
Trade and other receivables	58	19	569
Cash and cash equivalents	26	42	58
	────────	────────	────────
Total assets	84	61	627
	═══════	═══════	═══════
Equity and liabilities
Share capital	391	214	273
Investment in own shares	36	-	-
Share premium account	1,169	926	1,638
Share-based compensation reserve	161	161	198
Retained earnings	(1,902)	(1,359)	(1,586)
	────────	────────	────────
Total equity	(145)	(58)	54
Current liabilities
Trade and other payables	229	119	104
	────────	────────	────────
Total equity and liabilities	84	61	627
	═══════	═══════	═══════

EQUATORIAL MINING AND EXPLORATION PLC

UNAUDITED STATEMENT OF CASH FLOWS FOR SIX MONTHS ENDED

30 JUNE 2015

	6 Months to 30 June 2015	6 Months to 30 June 2014	Year to 31 December 2014
	GBP'000	GBP'000	GBP'000
Cash flows from operating activities
Profit/(Loss) before income tax	(316)	(162)	(1,032)
Share-based compensation	-	-	680
Finance income (cost)	-	-	1
	────────	────────	────────
Operating cash flows before movement in working capital and provisions	(316)	(162)	(351)
(increase)/decrease in trade and other receivables	42	34	(13)
(Decrease)/increase in trade and other payables	102	12	61
	────────	────────	────────
Net cash used in operating activities	(172)	(116)	(303)
	────────	────────	────────
Cash flows from investing activities
Interest received	-	-	-
Interest paid	-	-	(1)
	────────	────────	────────
Net cash generated from investing activities	-	-	(1)
	────────	────────	────────
Cash flows from financing activities
Increase in shareholder loans	-	64	-
Issue of new shares	140	-	268
	────────	────────	────────
	140	64	268
	────────	────────	────────
Net decrease in cash and cash equivalents	(32)	(52)	(36)
Net cash and cash equivalents at beginning of period	58	94	94
	────────	────────	────────
Net cash and cash equivalents at end of period	26	42	58
	═══════	═══════	═══════

EQUATORIAL MINING AND EXPLORATION PLC

NOTES TO THE ACCOUNTS

FOR SIX MONTHS ENDED 30 JUNE 2015

1.   Basis of preparation of interim report

      The financial information for the period ended 30 June 2015 does not constitute statutory accounts as defined in section 434 of the Companies Act 2006.  It has been prepared in accordance with the accounting policies set out in, and is consistent with, the audited financial statements for the twelve months ended 31 December 2014.  A copy of the statutory accounts for the period has been delivered to the Registrar of Companies.  The auditor's report on those accounts was unqualified and did not contain statements under Section 498 (2) or (3) of the Companies Act 2006.

2.   Going concern

      The Directors are of the opinion that the financial information should be prepared on a going concern basis, in the light of the Company's financial resources.  On 21 September 2015, entered into an agreement with a Darwin Strategic Limited for the provision of a Senior Unsecured Loan Note of up to £350,000 before fees and expenses.

3.   Earnings/(loss) per share

      Basic earnings/(loss) per share is calculated by dividing the earnings attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period.

      For diluted earnings/(loss) per share, the weighted average number of ordinary shares in issue is adjusted to assume conversion of all dilutive potential ordinary shares.

      The calculation of basic and diluted earnings/(loss) per share is based on the following figures.

	6 Months to 30 June 2015	6 Months to 30 June 2014	Year to 31 December 2014
	GBP'000	GBP'000	GBP'000
Total profit/(loss) for the period	(316)	(162)	(1,032)
	Number	Number	Number
Weighted average number of shares - basic	3,490,566,557	2,141,666,667	2,172,110,503
Basic earnings/(loss) per shares	(0.009p)	(0.01p)	(0.0047p)
Diluted earnings/(loss) per share	(0.009p)	(0.01p)	(0.0047p)

4.   Reports

      A copy of this announcement will be mailed to shareholders and copies will be available for members of the public at the Company's registered office: Finsgate, 5-7 Cranwood Street, London, EC1V 9EE.

 

END

 

 

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