Half Yearly Report

RNS Number : 2876W
Aurum Mining PLC
06 November 2014
 



AURUM MINING PLC

("Aurum" or "the Company")

 

Interim Results for the six months ended 30 September 2014

 

Aurum Mining plc (AIM: AUR), the Spanish focused gold and tungsten explorer, is pleased to report its interim results for the six months ended 30 September 2014.

 

 

Contacts:

 

 

 

Aurum Mining plc

www.aurummining.net

Chris Eadie, Chief Executive Officer

+44 (0) 20 7499 4000

 

 

WH Ireland Limited

 

Nominated Adviser & Broker

www.wh-ireland.co.uk

Mike Coe, Ed Allsopp

+44 (0) 117 945 3470

 

 

 

 

Aurum Mining Plc

 

Review of Activities

 

Aurum Mining plc (AIM: AUR) is pleased to announce its interim results for the six months ended 30 September 2014.

 

The Company's 2014 Annual Report, which was published on 18 August 2014, outlined that the Board was changing the Company's strategy and direction to ensure the growth and development of the Company as a direct result of the very challenging market conditions that are adversely impacting the junior mining sector. The Annual Report went on to say that the Board would be working closely in conjunction with the Company's major Shareholder to identify and complete a transformational deal that will enhance the prospects of the Company.

 

During the last couple of months the Board has looked at a number of potential opportunities, both natural and non-natural resource, and this will continue to be the focus of the next period. Shareholders in AIM listed junior mining companies have faced a long period of falling valuations and increased dilution and with no end in sight for the ongoing downturn, the Board feels that this change in strategic direction is unquestionably the right thing for the Company to do.

 

The Board looks forward to keeping the market up to date with progress.

 

Gold projects

 

In tandem with the new strategic approach, the Company will be looking to drive value from the successful exploration work undertaken on the gold projects to date. Aurum is working closely with its joint venture partner Ormonde Mining plc ("Ormonde") (AIM: ORM) to achieve this. There have been a number of discussions with interested parties around structuring a deal for Aurum's stake in the gold projects and a number of these discussions are on-going. There is currently a very low level of activity taking place on the gold projects, and in the short term the Company will refrain from funding, resulting in a small dilution, which currently stands at just over one per cent.

 

Morille tungsten project

 

Following the completion of the deal with Plymouth Minerals Limited ("Plymouth") (ASX: PLH) in which Plymouth became Aurum's partner on the Morille tungsten project, significant exploration work has been carried out on the project. The Board has been impressed by the energy and enthusiasm of Plymouth and the work done to date has yielded some very promising results. The Board looks forward to updating the market with further exploration updates in the near future.

 

Key financials

 

For the six months to 30 September 2014, the Group reported a loss of £172,000 compared to a loss of £259,000 for the same period in 2013.

 

On 21 August 2014, the Company announced that it had raised £60,000 (before expenses) through a placing of 4,800,000 new Ordinary Shares. The funds of the placing are enabling the Company to pursue its revised strategy.

 

On 31 October 2014, the twelve month anniversary of the disposal of the Morille project, the Company received €50,000 of Plymouth shares as final consideration from the transaction.

 

During this period of transition, cash management and cost control have remained key priorities for the Company. Administrative costs have been significantly reduced over recent months and the full impact of these reductions will be seen in the full year numbers.

 

Corporate

 

The Board would like to thank its Shareholders and advisers for their input during this period. In particular the Board would like to thank the Company's major Shareholder for the on-going support it is receiving during this transitional period.

 

 

Qualified Person

 

Sean Finlay, Professional Geologist, Chartered Engineer, Chairman of Aurum Mining plc, and a qualified person as defined in the Guidance Note for Mining, Oil and Gas Companies, June 2009, of the London Stock Exchange, has reviewed and approved the technical information contained in this report.

 

 

 

 

Sean Finlay                                         Chris Eadie

Chairman                                             Chief Executive Officer

 

6 November 2014

 

 

 

 

 

 

 

 

CONSOLIDATED INCOME STATEMENT

for the six months ended 30 september 2014

 

 

                                                                                   

 

 

 

Six months to 30 September

Six months to 30 September

Year ended 31 March

 

 

2014

2013

2014

 

Notes

£'000

£'000

£'000

 

 

Unaudited

Unaudited

Audited

 

 

 

 

 

Administrative expenses

 

(172)

(263)

(479)

 

 

 

 

 

Operating loss

 

(172)

(263)

(479)

 

 

 

 

 

Finance income

 

-

4

1

Loss for the year before taxation

 

(172)

(259)

(478)

 

 

 

 

 

Taxation

 

-

-

-

Loss for the year from continuing operations

 

(172)

(259)

(478)

 

 

 

 

 

Loss for the year from discontinued operations

 

-

-

(52)

 

 

 

 

 

Loss attributable to the equity shareholders of the parent company

 

(172)

(259)

(530)

 

 

 

 

 

Loss per share expressed in pence per share

 

 

 

 

 

 

 

 

 

From continuing operations

 

 

 

 

Basic and Diluted

2

(0.12)p

         (0.18)p

          (0.34)p

 

 

 

 

 

From discontinued operations

 

 

 

 

Basic and Diluted

2

-

-

(0.03)p

 

 

 

 

 

Total operations

 

 

 

 

Basic and Diluted

2

(0.12)p

(0.18)p

(0.37)p

 

  

 

CONSOLIDATED statement of COMPREHENSIVE INCOME

for the six months ended 30 september 2014

 

 

 

 

 

Six months to 30 September

Six months to 30 September

Year ended 31 March

 

2014

2013

2014

 

£'000

£'000

£'000

 

Unaudited

Unaudited

Audited

 

 

 

 

Loss after taxation for the financial year

(172)

(259)

(530)

 

 

 

 

Items that will or may be reclassified to P&L:

 

 

 

Exchange translation differences on consolidation of Group entities

 

-

 

-

 

-

Other comprehensive income

-

-

-

 

 

 

 

Total comprehensive expense attributable to the equity shareholders of the parent company

 

(172)

 

( 259)

 

( 530)

 

 

 

 

  

 

 

ConSOLIDATED statement of financial position

as at 30 september 2014

 

 

 

 

Six months to 30 September

Six months to 30 September

Year ended 31 March

 

 

2014

2013

2014

Assets

Notes

£'000

£'000

£'000

 

 

Unaudited

Unaudited

Audited

Non-current assets

 

 

 

 

Intangible assets

 

3

899

1,193

899

Investments

 

64

-

64

Total non-current assets

 

963

1,193

963

 

 

 

 

 

Current assets

 

 

 

 

Receivables

 

57

30

62

Cash and cash equivalents

 

67

269

214

Total current assets

 

124

299

276

 

 

 

 

 

Total assets

 

1,087

1,492

1,239

 

 

 

 

 

Liabilities

 

 

 

 

Current liabilities

 

 

 

 

Trade and other payables

 

 

74

95

113

 

 

 

 

 

Total current liabilities

 

74

95

113

 

 

 

 

 

Total liabilities

 

74

95

113

Net  assets

 

1,013

1,397

1,126

 

Capital and reserves attributable to the equity holders of the company

 

 

 

 

Share capital

4

1,461

1,413

1,413

Share premium

 

11,596

11,585

11,585

Retained deficit

 

(12,044)

(11,601)

(11,872)

 

Total Equity

 

1,013

1,397

1,126

 

 

 

 

 

 

 

 

CONSOLIDATED statement of Changes in equity

 

 

 

 

Share capital

 

 

 

Share premium

Retained deficit

 Total Equity

 

£'000 

          £'000 

          £'000 

         £'000 

 

 

 

 

 

At 1 April 2014

1,413

11,585

(11,872)

1,126

 

 

 

 

 

Total comprehensive expense for the year

-

 

-

(172)

(172)

Issue of shares net of issue costs

48

11

-

59

 

 

 

 

 

 

 

 

 

 

At 30 September 2014 (unaudited)

1,461

11,596

(12,044)

1,013

 

At 1 April 2013

1,413

11,585

(11,342)

1,656

 

 

 

 

 

Total comprehensive expense for the year

-

 

-

(259)

(259)

 

 

 

 

 

 

 

 

 

 

At 30 September 2013 (unaudited)

1,413

11,585

(11,601)

1,397

 

At 1 April 2013

1,413

11,585

(11,342)

1,656

 

 

 

 

 

Total comprehensive expense for the year

-

 

-

(530)

(530)

 

 

 

 

 

 

 

 

 

 

At 31 March 2014 (audited)

1,413

11,585

(11,872)

1,126

 

 

 

          The following describes the nature and purpose of each reserve within owners' equity.

 

 

Reserve

 

Description and purpose

Share capital

 

Amounts subscribed for share capital at nominal value.

Share premium

 

Amounts subscribed for share capital in excess of nominal value.

Retained deficit

 

Cumulative net gains and losses recognised in the income statement less distributions made.

 

 

 

 

 

 

 

CONSOLIDATED statement of cash flows

for the six months ended 30 september 2014

 

 

 

Six months to 30 
September

Six months to 30 September

Year ended 31 March

 

2014

2013

2014

 

£'000

£'000

£'000

 

Unaudited

Unaudited

Unaudited

Cash flows from operating activities

 

 

 

 

Loss for the year before tax

(172)

(259)

(530)

Adjustments for:

 

 

 

Finance income

-

(4)

(1)

Disposal of subsidiaries

-

-

30

Exchange differences

-

4

1

 

 

 

 

Cash flow from operating activities before changes in working capital

(172)

(259)

(500)

 

 

 

 

Decrease in other receivables

5

27

37

(Decrease) / increase in trade and other payables

(39)

(4)

14

 

 

 

 

Net cash flow used in operating activities

(206)

(236)

(449)

 

 

 

 

Investing activities

 

 

 

Ormonde joint venture payments

-

(132)

(159)

Expenditure on tungsten project

-

(61)

-

Disposal of subsidiary net of cash

-

-

124

 

 

 

 

Net cash flow used in investing activities

-

(193)

(35)

 

 

 

 

Financing activities

 

 

 

Proceeds from issue of share capital

60

-

-

Expenses paid in connection with share issues

(1)

-

-

Net cash flow from financing activities

 59

-

-

 

 

 

 

Net decrease in cash and cash equivalents

          (147)

        (429)

        (484)

 

Cash and cash equivalents at the beginning of the period/ year

       214

                 698

                 698

 

Effect of exchange rate changes on cash and cash equivalents

-

-

-

 

Cash and cash equivalents at the end of the period/ year

 67

269

214

 

 

 

 

 

Notes to the Consolidated Interim Financial Statements

 

For the half year ended 30 September 2014

 

 

1. Basis of preparation

 

The unaudited consolidated interim financial statements have been prepared in accordance with International Financial Reporting Standards, International Accounting Standards and Interpretations  (collectively 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 March 2014 and are expected to be consistent with those policies that will be in effect at the year end except the Group has adopted a number of revised standards and interpretations. However, none of these has had a material affect on the Group's reporting. In addition the IASB has issued a number of IFRS and IFRIC amendments and interpretations since the last annual report.

 

The financial statements for the six months ended 30 September 2014 and 30 September 2013 are un-reviewed and unaudited. The comparative financial information does not constitute statutory financial statements as defined by Section 434 of the Companies Act 2006. The comparative financial information for the year ended 31 March 2014 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, but did draw attention by way of emphasis, in respect of the Group's ability to continue as a going concern, but did not contain a statement under section 498 (2) or 498 (3) of the Companies Act 2006.

 

The Group financial statements are presented in Great Britain Pounds Sterling, and all values are rounded to the nearest thousand Pounds (£'000) except when otherwise indicated.

 

Going concern

 

Following a review of the Group's operations, its current financial position and cash flow forecasts, the Directors do not believe that the Group currently has sufficient cash resources to continue in operational existence for the next twelve months. However in addition to being able to reduce overheads still further, the Company has assets for potential sale, deferred consideration shares in Plymouth for disposal and a Letter of Support from its major Shareholder which commits to underwrite the Group's underlying operating costs until August 2015.

 

Based on the above the Directors have formed a view that the Group will have financial resources available to it, in the twelve months from the date of signing the interim financial statements, to enable the Group to meet its financial commitments as they arise. Accordingly, the Directors continue to adopt the going concern basis for the preparation of these interim financial statements.   

 

2. Loss per share

 

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

 

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

 

As at 30 September 2014 there were 4,450,000 (30 September 2013: 4,450,000, 31 March 2014: 4,450,000) potentially dilutive ordinary shares.

 

The effect of all potential ordinary shares arising from the exercise of options is anti-dilutive and therefore diluted loss per share has not been calculated.

 

 

 

 

Six months to 30 September

Six months to 30 September

Year ended 31 March

 

2014

2013

2014

 

£'000

£'000

£'000

 

Unaudited

Unaudited

audited

Net loss attributable to equity holders of the parent:

 

 

 

From continuing operations

(172)

(259)

(478)

From discontinued operations

-

-

(52)

From total operations

                  (172)

(259)

(530)

 

 

 

 

 

 

 

Six months to 30 September

Six months to 30 September

Year ended 31 March

 

2014

2013

2014

 

Number

Number

Number

 

Unaudited

Unaudited

audited

Weighted average number of shares:

 

 

 

Weighted average number of shares

142,162,260

141,291,930

141,291,930

 

 

 

 

 

 

3. Intangible assets

 

 

30 September

30 September

31 March

 

2014

2013

2014

 

£'000

£'000

£'000

Intangible assets

Unaudited

Unaudited

Audited

 

 

           

 

Gold exploration

899

872

899

Tungsten project

-

321

-

Total intangible assets

899

1,193

899

 

 

 

4. Share capital

 

 

Number

Nominal value

Share premium

Total

 

 

£'000

£'000

£'000

Authorised

 

 

 

 

Ordinary shares of £0.01

200,000,000

2,000

-

2,000

 

 

 

 

 

 

 

 

 

 

Allotted, issued and fully paid ordinary shares of £0.01

 

 

 

 

 

 

 

 

 

As at 1 April 2013 and 1 April 2014

141,291,930

1,413

11,585

12,998

Issue of shares net of issue costs

4,800,000

48

         11

59

 

 

 

 

 

 

 

 

 

 

As at 30 September 2014

146,091,930

1,461

11,596

13,057

 

 

5. Events after the reporting period

 

Details of significant post reporting period events are included within the Review of Activities.

 

  

 

 

 

 

 

 

 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
IR LFFVFLVLEIIS
UK 100

Latest directors dealings