Interim Results

RNS Number : 4435A
Landore Resources Limited
29 September 2015
 



29 September 2015

 

Landore Resources Limited

("Landore Resources" or the "Company")

 

Interim Results for the six months ended 30 June 2015

 

 

Landore is pleased to announce its interim results for the six months ended 30 June 2015.

 

 

For more information please contact:

 

Bill Humphries, Chief Executive Officer

Richard Prickett, Finance Director

Landore Resources Limited

Tel: 07734 681262

Tel: 07775 651421

www.landore.com

 

Angela Hallett / James Spinney

Strand Hanson Limited

Nominated Advisor and Broker                                                                                                                                                                                                                   

Tel: 020 7409 3494

 

 

Copies of the Interim statement are available on the website, www.landore.com 

 

 

 

MANAGEMENT DISCUSSION AND ANALYSIS

FOR THE SIX MONTHS ENDED 30 JUNE 2015

 

 

General

The following discussion of performance, financial condition and future prospects should be read in conjunction with the interim consolidated financial statements of the Group and notes thereto for the period from 1 January 2015 to 30 June 2015.  All amounts are stated in sterling.

 

Overview

Landore Resources Limited is listed on the Alternative Investment Market in London, with the trading symbol LND.L. The Company is based in Guernsey in the Channel Islands and its 100% owned operating subsidiary, Landore Resources Canada Inc, is engaged in the exploration and development of a portfolio of precious and base metal properties in North America.

 

Results of Operations

The financial results for the six months to 30 June 2015 show a loss of £1,180,977 (2014: loss £809,560). These results were in line with expectations.   Exploration costs were £466,518 (2014: £376,479).

 

During the period under review £nil (2014: £nil) was raised from the issue of shares.

 

The Group has no debt but will need to raise further equity in order to carry out its exploration and development activities, and also for working capital.

 

Corporate Strategy:

Landore is focussing on the highly prospective Junior Lake nickel-copper-cobalt-PGEs project, with the aim of growing its resource base to plus 100,000 tonnes of nickel equivalent (NiEq), to ultimately sell the project to a third party or enter into a joint venture partnership to develop the project.

 

To date Landore has delineated NI 43-101 compliant resources totalling 55,008 tonnes NiEq contained metal on the two main deposits the B4-7 and the VW, of which 93.6% is in the Indicated category. In addition there is the B4-7's Exploration Target, estimated to contain approximately 20,000 tonnes NiEq and the highly prospective Alpha Zone adjacent to the B4-7 which promises to add significant tonnage to the B4-7 resource.

 

Works completed on the Junior Lake property to date have clearly demonstrated the existence of a geological environment that is favourable for the deposition of magmatic nickel-copper sulphide mineralisation. Based on geological signatures and available geological knowledge, this favourable environment is believed to exist along a strike length of approximately 10 kilometres. At its widest, the favourable rock sequences are in the order of 1,000 to 1,500 metres in thickness.

 

2014-2015 Works:

Recent exploration works in 2014 and 2015, which included 3,250 metres deposit drilling and 6,216 metres of exploration drilling, returned highly encouraging results. Drilling in the B4-7 deposit identified additional high-grade Alpha Zone mineralisation in close proximity to the B4-7 main zone, as well as confirming additional B4-7 massive sulphide mineralisation within the B4-7's Exploration Target. Exploration drilling has confirmed an extension of a gold/copper bearing structure from the B4-7 deposit for 1,000 metres to line 1600E.

 

Encouraged by these results, Landore initiated a mineral potential investigation and geophysics review on the Junior Lake Property.

 

Mineral Potential Investigation:

Landore retained the services of RPA Inc. (RPA) independent engineers of Toronto, Canada, for the completion of a review and report of the B4-7 nickel-copper cobalt-PGEs deposit and VW nickel deposit information to include the above 2014-2015 drilling campaigns. As part of this investigation a re-assessment will be conducted of the Alpha Zone and Exploration Target for inclusion into the B4-7 resource, and recommendations will be made for further exploration including drilling, geotechnical and metallurgical works. The report will be to Canadian National Instrument NI 43-101 standards and is scheduled for completion the first week of October 2015.

 

Geophysics Review:

In support of the above investigation, Landore retained the services of Alan King M.Sc., Professional Geophysicist, an independent geophysicist of Sudbury, Canada, to review and interpret all geophysical survey data acquired by Landore to-date on the Junior Lake property. This independent report was announced on 21st September 2015. 

 

As part of this review numerous targets for further exploration have been identified.

 

The full report is available on our website www.landore.com.

 

The Junior Lake property:

The Junior Lake property, 100% owned by Landore Resources, is located in the province of Ontario, Canada, approximately 235 kilometres north-northeast of Thunder Bay, and is host to;  the B4-7 Nickel-Copper-Cobalt-PGEs resource, the recently-identified Exploration Target and the Alpha Zone. Junior Lake also contains the VW Nickel resource and numerous other highly prospective mineral occurrences.

 

B4-7 Nickel-Copper-Cobalt-PGEs Resource:

 

RESOURCE CLASS

VOLUME

(tonnes)

GRADE

(% NiEq)

Contained Metal (tonnes NiEq)

Indicated

2,695,000

1.24

33,248

 

Exploration Target

1,500,000 to 2,000,000

~1.24

~20,000

 

The B4-7 resource estimate and report, completed by RPA Inc. (RPA) of Toronto, Canada in January 2013, is compliant with the requirements of National Instrument 43-101 (NI 43-101). The resource remains open down plunge at depth and along strike to the west.

 

VW Nickel Resource:

 

RESOURCE CLASS

VOLUME

(tonnes)

GRADE

(% NiEq)

Contained Metal (tonnes NiEq)

Indicated

3,730,000

0.49

21,760

Inferred

720,000

0.49

 

The VW resource estimate and report, completed in January 2010, is to NI 43-101 standards. The deposit remains open down plunge at depth and along strike to the east and to the west.

 

Planned Works:

Landore has embarked on a multi-phase works plan starting with the afore-mentioned studies (phase 1). Following the completion of these studies, Landore will commence phase 2 of its works programme consisting of metallurgical and geotechnical studies for optimisation of processing and pit parameters on both the B4-7 and VW deposits, together with drilling to test prospective geophysical targets as identified by the independent geophysicist.

 

The third phase of works, currently scheduled to commence in Q1 2016, consists of a definition drilling programme as per the independent engineers' recommendations to bring the Exploration Target and Alpha Zone into the NI 43-101-compliant B4-7 resource.

 

When results from the above works have been received, an updated resource estimate will be completed (phase 4).

 

For further information on Landore and the Group's projects please visit the website

 

www.landore.com 

 

 

LANDORE RESOURCES LIMITED

 

UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE SIX MONTHS ENDED 30 JUNE 2014

 

 

                                                                                                                               

 

Notes

Group

Six months ended

30 June 2015

£

 

Group

Six months ended

30 June 2015

£

 

Exploration costs

2

(466,518)

 

(376,479)

Other income


-


1,462

Administrative expenses


(715,773)


(468,664)

 

 

 

 

 

Operating loss


(1,182,291)


(843,681)

 

 

 

 

 

Finance income


1,314


34,121

 

 

 

 

 

Loss before income tax

 

(1,180,977)

 

(809,560)

 

 

 

 

 

Income tax expense


-


-

 

 

 

 

 

Loss for the period


(1,180,977)

 

(809,560)

 

Other comprehensive income/(loss):

 

 

 

 

Exchange difference on translating foreign

 

 

 

 

operations


233,520


(171,953)

Other comprehensive income/(loss) for the year

 

 

 

 

 net of tax


233,520


(171,953)

 

 

 

 

 

Total comprehensive loss for the period


(947,457)


(981,513)

 

 

 

 

 

 

Loss attributable to:

 

 

 

 

Equity holders of the Company

 

(1,180,977)

 

(809,560)

 

Total comprehensive loss attributable to:

 

 

 

 

Equity holders of the Company

 

(947,457)

 

(981,513)

 

 

 

 

 

 

 

 

 

 

Loss per share attributable to the

 

 

 

 

equity holders of the Company during the year

 

 

 

 

 

 

 

 

 

- basic & diluted

3

(£0.002)

 

(£0.002)

 

 

 

 

 

 

                                                           

The Group's operating loss relates to continuing operations.

The notes and accounting policies on pages 9 to 10 form part of these interim financial statements.

 

 

LANDORE RESOURCES LIMITED

 

UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE SIX MONTHS ENDED 30 JUNE 2015

 

 


Share

capital

£

Share

premium

£

Share

options

£

Warrants

£

Retained

earnings

£

Cumulative

translation

reserve

£

Total

£

Balance at
1 January 2014

4,134,838

26,653,862

707,775

-

(27,126,179)

(152,162)

4,218,134

Loss for the year

-

-

-

-

(809,560)

-

(809,560)

Other comprehensive losses in the year

-

-

-

-

-

(171,953)

(171,953)

Issue of ordinary share capital

-

-

-

-

-

-

-

Issue costs

-

-

-

-

-

-

-

Share option adjustment

-

-

(11,262)

-

20,290

-

9,028

Balance at
30 June 2014

 

4,134,838

 

26,653,862

 

696,513

 

-

 

(27,915,449)

 

(324,115)

 

3,245,649

 

Balance at
1 January 2015

5,174,838

28,084,421

858,019

33,690

(32,839,649)

(308,851)

1,002,468

Loss for the year

-

-

-

-

(1,180,977)

-

(1,180,977)

Other comprehensive gains in the year

-

-

-

-

-

233,520

233,520

Issue of ordinary share capital

-

-

-

-

-

-

-

Issue costs

-

-

-

-

-

-

-

Share option adjustments

-

-

-

-

-

-

-


 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at
30 June 2015

 

5,174,838

 

28,084,421

 

858,019

 

33,690  

 

(34,020,626)

 

(75,331)

 

55,011

 

The accounting policies and notes form part of these financial statements.

 

 

LANDORE RESOURCES LIMITED

 

UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AT 30 JUNE 2015

 

 

                                                           

 

Notes

Group

As at 30 June 2015

£

 

Group

As at 30 June 2014

£

 

Group

As at 31 December 2015

£

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

Non current assets

 

 

 

 

 

 

Property, plant and equipment

 

43,733

 

61,312

 

53,297

Investments

 

-

 

75,740  

 

-

 

 

 

 

 

 

 

 

 

43,733

 

137,052

 

53,297

Current assets

 

 

 

 

 

 

Trade and other receivables            

 

19,780

 

3,426,008

 

26,519

Cash and cash equivalents

 

208,304

 

89,380

 

1,072,243

 

 

 

 

 

 

 

 

 

228,084

 

3,515,388

 

1,098,762



 

 

 

 

 

Total assets

 

271,817

 

3,652,440

 

1,152,059



 

 

 

 

 

Equity

 

 

 

 

 

 


 

 

 

 

 

 

Capital and reserves attributable to the Company's equity holders

 

 

 

 

 

 

Share capital

4

5,174,838

 

   4,134,838

 

 5,174,838

Share premium

4

28,084,421

 

26,653,862

 

28,084,421

Share options reserve

 

858,019

 

696,513

 

858,019

Warrants reserve

 

33,690

 

-

 

33,690

Retained earnings

5

(34,020,626)

 

(27,915,449)

 

(32,839,649)

Cumulative translation adjustment

 

(75,331)

 

   (324,115) 

 

(308,851)

 

 

 

 

 

 

 

Total equity

 

55,011

 

   3,245,649

 

1,002,468

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 



 

 

 

 

 

Non current liabilities

 

 

 

 

 

 

Income tax liabilities

 

-

 

-

 

  -  

 

 

-

 

-

 

-



 

 

 

 

 

Current liabilities

 

 

 

 

 

 

Trade and other payables                          

 

185,905

 

373,848

 

116,411

Income tax liabilities

 

30,901

 

32,943

 

  33,180

 

 

216,806

 

406,791

 

149,591



 

 

 

 

 



 

 

 

 

 

Total liabilities

 

216,806

 

406,791

 

149,591

 

 

 

 

 

 

 

Total equity and liabilities

 

271,817

 

3,652,440

 

1,152,059

 

 

 

The notes and accounting policies form part of these interim financial statements.

 

 

LANDORE RESOURCES LIMITED

 

UNAUDITED CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE SIX MONTHS ENDED 30 JUNE 2015

 


 

Group

Six months ended

30 June 2015

£

Group

Six months ended

30 June 2014

£

Cash flows from operating activities

 

 

Operating loss

(1,180,977)

(843,681)

Finance income

1,314

218,094

Depreciation of tangible fixed assets

6,096

8,326

Foreign exchange gain/(loss) on non-cash items

236,831

(35,799)

Share options

-

9,028

Decrease in receivables

6,739

14,085

Increase in payables

67,215

 

18,155

 

Net cash outflow from operating activities

(862,782)

(611,792)

Cash flows from investing activities

 

 

Purchase of property, plant and equipment

-

-

 

-

-

Cash flows from financing activities

 

 

Issue of ordinary share capital

-

-

Issue costs

-

 

-

 

 

-

-

 

 

 

Net (decrease) in cash and cash equivalents

(862,782)

(611,792)

Cash and cash equivalents at beginning of period

1,072,249

699,633

Exchange (loss)/gain on cash and cash equivalents

(1,163)

 

1,539

 

Cash and cash equivalents at end of period

208,304

 

89,380

 

 

 

The notes and accounting policies form part of these interim financial statements

 

 

LANDORE RESOURCES LIMITED

 

NOTES TO THE FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED 30 JUNE 2015

 

 

 

1          Basis of accounting and accounting policies

 

The financial statements have been prepared in accordance with those International Financial Reporting Standards ("IFRS") and International Financial Reporting Interpretations Committee ("IFRIC") interpretations issued and effective or issued and early adopted as at the time of preparing these financial statements (September 2015).  The Directors have elected not to apply IAS34 Interim Financial Reporting.

 

The financial statements have not been audited and have been prepared on the historical cost basis. The principal accounting policies adopted are consistent with those adopted in the annual accounts to 31 December 2014.

 

 

2          Exploration expenditure and mineral properties

           

 

1 January 2015

 

£

 

Net Expenditure in period

£

 

Accumulated expenditure 30 June 2015

£

 

Junior Lake/Lamaune Lake

15,440,796 

 

468,169

 

15,908,965

 

Miminiska Lake

1,519,001

 

1,014

 

 1,520,015

 

Lessard

697,920

 

(992)

 

  696,928

 

Frond Lake

79,177

 

1,195

 

80,372

 

Wottam

61,558

 

-

 

61,558

 

Other/including Swole Lake and West Graham

63,238


(2,868)


60,370

 

 

 

 

 

 

 

 

 

17,861,690

 

466,518

 

18,328,208

 

 

            Mineral properties at 30 June 2015 represent accumulated costs to date incurred by Landore Resources Canada Inc., a subsidiary of Landore Resources Limited. On acquisition of Landore Resources Canada Inc. on 5 April 2006 the fair value of those costs incurred to date was considered to be £nil. All subsequent expenditure in the period has been charged to the income statement in accordance with the group accounting policy.

 

 

3          Loss per share

 

The loss per share is based on the loss for the period and the weighted number of ordinary shares in issue during the period, being 517,483,825 (2014: 413,483,825).

 

Diluted loss per share

 

The potential ordinary shares which arise as a result of the options in issue are not dilutive under the terms of IAS 33 because they would not increase the loss per share. Accordingly there is no difference between the basic and dilutive loss per share.

 

 

4          Share capital

                                                                                                                                      

 

 

 

30 June 2015

£

 

1 January 2015

£

Issued:

517,483,825 ordinary shares of 1 penny each

 

 

5,174,838

 

 

5,174,838

 

                                                                          




 




Share Capital 2015

£

 

Share premium 2015

£

At 1 January 2015 and 30 June 2015


5,174,838

 

28,084,421

 

 

 

5          Profit and loss reserve

 

 

 

 

 

 

 

 

 

£

At 1 January 2015

 

 

 

(32,839,649)

Loss for the period

 

 

 

(1,180,977)

 

 

 

 

 

At 30 June 2015



 

(34,020,626)

 

 

 


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