Half Yearly Report

RNS Number : 3897H
Tertiary Minerals PLC
19 May 2014
 



Tertiary Minerals plc

("the Company")

19 May 2014

 

UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 MARCH 2014

 

Chairman's Statement

 

I am pleased to report on the Company's progress and unaudited interim results for the six month period ended 31 March 2014.

 

Review of Activities

Undoubtedly the news highlights of the year so far have been the result of drilling on the MB Fluorspar Project in Nevada, USA, and the definition of a maiden JORC compliant Mineral Resource that has far exceeded the Board's expectations from this first drill programme.

 

At 38.4 million tonnes grading 10.4% CaF2 (fluorspar) the MB Mineral Resource more than doubles the amount of fluorspar now contained in the Company's reported Mineral Resources at its three fluorspar projects in Sweden, Norway and Nevada. Importantly, it also anchors the Company's ambition to be a supplier of fluorspar to the two largest fluorspar buying regions outside of China - North America and Europe - where fluorspar (CaF2) is an essential raw material of fluorine in the chemical, steel and aluminium industries.

 

The Company has started metallurgical testwork on the MB project drill samples and is planning a programme of follow up drilling. Mineralisation remains open in all directions and at depth. A number of holes are likely to test deeper in the Central Area, where recent holes ended in higher grade mineralisation, and laterally in potentially shallow mineralised positions. It is a very exciting time for this project as the true size of the deposit, already large, is yet to be revealed.

 

Whilst the MB Project has provided the news, important work has been continuing in Sweden on the more advanced Storuman Fluorspar Project where the Company is continuing with pre-feasibility studies and preparing an application for a Mining Concession which I anticipate will be submitted shortly. This has involved a series of government and public meetings where the project has enjoyed strong support.

 

Results  

The Group is reporting a loss for the six month period of £84,134 (six months to 31 March 2013: £253,718). This loss comprises administration costs of £152,104 (which includes a share based payments credit of £13,850), pre-licence (reconnaissance) costs totalling £7,100 and interest income of £2,362. The loss is stated after crediting a non cash amount of £72,708 which is a gain in fair value between the Company's independently valued liability, under the Equity Swap Agreement, at 30 September 2013 and the settlement of the Agreement on 8 November 2013.  The share-based payment is a net non-cash item relating to the issue of warrants in this period and the expiry in this period of warrants which were issued in previous years.

 

During the period 2,200,000 warrants were exercised at an average price of 7.03 pence per share and in April this year, after the end of the current reporting period the Company raised £167,178 through the issue of 1,490,000 new ordinary shares to Darwin at a gross price of 12p per share by drawing down on its £10 million Equity Finance Facility. The Facility provides a useful means of fundraising which, when used judiciously, is less dilutive than conventional discounted placings. In this case the proceeds were raised at a higher price than the market price prevailing during draw down period.

 

It is highly disappointing that, despite the progress being made, the Company's share price has fallen in recent weeks and the Company's shares now trade at only a fraction of the higher revised broker price targets set after the announcement of the MB Mineral Resource Estimate.

 

Fluorspar is a strategic mineral where supply continues to be dominated by China. Following the proposed acquisition this year of TSX listed fluorspar development company Canada Fluorspar Inc. by a private equity group, Tertiary Minerals plc will become one of just two publicly traded companies offering investors exposure to this important strategic mineral and the only such company traded on AIM.

 

We believe the Company is well placed to make further progress during the second half of the financial year and we look forward to advising shareholders of this progress on a regular basis.

Patrick L Cheetham                

Executive Chairman

19 May 2014

 

 

ENQUIRIES

 

 For further information please contact:

 

 Tertiary Minerals plc                           Tel: +44 (0)845 868 4580

 Patrick Cheetham, Executive Chairman

 Richard Clemmey, Managing Director

 

 Cantor Fitzgerald Europe                    Tel: +44 (0)20 7894 7000

 Stewart Dickson/Julian Erleigh (Corporate Finance)

 Jeremy Stephenson (Corporate Broking)

 

 Beaufort Securities Limited                 Tel: +44 (0)20 7382 8300

 Saif Janjua

 

 Yellow Jersey PR Limited                   Tel: +44 (0)7768 537 739

 Dominic Barretto/Kelsey Traynor

 

 

 

 

Consolidated Income Statement

for the six months to 31 March 2014

 

 






 

Six months

 to 31 March

2014

Unaudited


Six months

to 31 March

2013

 Unaudited


Twelve months

 to 30 September

      2013

Audited

 

£

 

£

 

£

 

 

 

 

 

 

Pre-licence exploration costs

7,100

 

12,987

 

32,131

 

 

 

 

 

 

Impairment of deferred exploration costs

-

 

7,140

 

7,140

 

 

 

 

 

 

Non-cash movement of liability under Equity Swap Agreement

 

          (72,708)

 

 

-

 

 

(20,300)

 

 

 

 

 

 

Administrative expenses

152,104

 

236,278

 

437,857

 

 

 

 

 

 

Operating loss

(86,496)

 

(256,405)

 

(456,828)

 

 

 

 

 

 

Interest receivable

  2,362

 

2,687

 

5,668

 

 

 

 

 

 

 

 

 

 

 

 

Loss on ordinary activities before taxation

(84,134)

 

(253,718)

 

(451,160)

 

 

 

 

 

 

Tax on loss on ordinary activities

-

 

-

 

-

 

 

 

 

 

 

Loss for the period attributable to equity holders of the parent

 

(84,134)

 

 

(253,718)

 

 

(451,160)

 

 

 

 

 

 

Loss per share - basic and fully diluted (pence) (note 2)

 

   (0.05)

 

 

(0.19)

 

 

(0.31)

 

 

 

 

 

 

 

 



 

 

Consolidated Statement of Comprehensive Income

for the six months to 31 March 2014

 

 

 

 

 

Six months to

 31 March

2014

Unaudited


Six months to

 31 March

 2013

Unaudited


Twelve months to

 30 September

2013

               Audited

 

£

 

£

 

 

 

 

 

 

 

 

 
Loss for the period

 

(84,134)

 

 

(253,718)

 

 

(451,160)

 

Other comprehensive income

 

 

 

 

 

 

Items that will not be reclassified subsequently to the income statement:

 

 

 

 

 

 
Movement in revaluation of available for sale investment

 

 

          (28,349)

 

 

 

(187,988)

 

 

 

(159,045)

 

       (28,349)

 

(187,988)

 

          (159,045)

 

Items that could be reclassified subsequently to the income statement:

 

 

 

 

 

 
Foreign exchange translation differences

on foreign currency net investments

in subsidiaries

 

 

 

       (62,794)

 

 

 

 

45,540

 

 

 

 

(10,204)

 

          (62,794)

 

45,540

 

(10,204)

 
Total comprehensive loss for the period attributable to the equity holders of the parent

 

 

 

(175,277)

 

 

 

 

(396,166)

 

 

 

 

(620,409)

 



 

 

 

 

Company Registration Number 03821411

Consolidated Statement of Financial Position

at 31 March 2014

 

 






 

As at

 31 March

2014

Unaudited


As at

 31 March

2013

Unaudited


As at

30 September

2013

Audited

 

£

 

£

 

£

Non-current assets

 

 

 

 

 

Intangible assets

2,853,140

 

2,089,046

 

2,420,947

Property, plant & equipment

5,943

 

11,902

 

8,605

Available for sale investment

273,173

 

167,387

 

230,251

 

 

 

 

 

 

 

3,132,256

 

2,268,335

 

2,659,803

 

 

 

 

 

 

Current assets

 

 

 

 

 

Receivables

84,561

 

75,396

 

81,490

Cash and cash equivalents

914,748

 

792,337

 

1,187,612

Restricted cash

-

 

-

 

366,007

 

 

 

 

 

 

 

999,309

 

867,733

 

1,635,109

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

Trade and other payables

(207,292)

 

(147,440)

 

(233,881)

Equity swap

-

 

-

 

(102,381)

 

 

 

 

 

 

 

(207,292)

 

(147,440)

 

      (336,262)

 
Net current assets

 

792,017

 

 

720,293

 

 

1,298,847

 

 

 

 

 

 

Net assets

3,924,273

 

2,988,628

 

3,958,650

 

 

 

 

 

 

Equity

 

 

 

 

 

Called up share capital

1,639,662

 

1,357,661

 

1,617,662

Share premium account

8,141,354

 

7,111,236

 

8,008,604

Merger reserve

131,096

 

131,096

 

131,096

Share option reserve

390,344

 

367,298

 

404,194

Available for sale revaluation reserve

(114,748)

 

(115,342)

 

(86,399)

Foreign currency reserve

74,310

 

192,848

 

137,104

Accumulated losses

(6,337,745)

 

(6,056,169)

 

(6,253,611)

 

 

 

 

 

 

Equity attributable to the owners of the parent

3,924,273

 

2,988,628

 

3,958,650

 

 

 

 

 

 

 

 

 

 


                        Consolidated Statement of Changes in Equity

                                     

 

 

 

Share

Capital

 

Share

Premium account

 

 

Merger

reserve

 

            Share

Option

reserve

Available

for sale

revaluation

reserve

 

Foreign

currency

reserve

 

 

Accumulated

losses

 

 

 

Total

 

£

£

£

£

£

£

£

£

At 30 September 2012

1,305,862

6,826,760

131,096

315,688

72,646

147,308

(5,802,451)

2,996,909

Loss for the period

-

-

-

-

-

-

(253,718)

(253,718)

Change in fair value

-

-

-

-

(187,988)

-

-

(187,988)

Exchange differences

-

-

-

-

-

45,540

-

45,540

 

 

 

 

 

 

 

 

 

Total comprehensive

 

 

 

 

 

 

 

 

loss for the period

-

-

-

-

(187,988)

45,540

(253,718)

          (396,166)

Share issue

51,799

284,476

-

-

-

-

-

336,275

Share based payments

-

-

-

51,610

-

-

-

51,610

 

 

 

 

 

 

 

 

 

At 31 March 2013

1,357,661

7,111,236

131,096

367,298

(115,342)

192,848

(6,056,169)

2,988,628

Loss for the period

-

-

-

-

-

-

       (197,442)

     (197,442)

Change in fair value

-

-

-

-

28,943

-

-

28,943

Exchange differences

-

-

-

-

-

(55,744)

-

       (55,744)

 

 

 

 

 

 

 

 

 

Total comprehensive

 

 

 

 

 

 

 

 

loss for the period

-

-

-

-

28,943

(55,744)

       (197,442)

(224,243)

Share issue

260,001

897,368

-

-

-

-

-

1,157,369

Share based payments

-

-

-

36,896

-

-

-

36,896

 

 

 

 

 

 

 

 

 

At 30 September 2013

1,617,662

8,008,604

131,096

404,194

(86,399)

137,104

(6,253,611)

3,958,650

Loss for the period

-

-

-

-

-

-

(84,134)

(84,134)

Change in fair value

-

-

-

-

(28,349)

-

-

(28,349)

Exchange differences

-

-

-

-

-

(62,794)

-

(62,794)

 

 

 

 

 

 

 

 

 

Total comprehensive

 

 

 

 

 

 

 

 

loss for the period

-

-

-

-

(28,349)

(62,794)

(84,134)

(175,277)

Share issue

22,000

132,750

-

-

-

-

-

             154,750

Share based payments

-

-

-

(13,850)

-

-

-

      (13,850)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At 31 March 2014

1,639,662

8,141,354

131,096

390,344

(114,748)

74,310

(6,337,745)

3,924,273

 

 

 


 

Consolidated Statement of Cash Flows

for the six months to 31 March 2014

 

 






 

Six months

 to 31 March

2014

Unaudited


Six months

 to 31 March

 2013

Unaudited


Twelve months

to 30 September

 2013

Audited

 

£

 

£

 

£

Operating activity

 

 

 

 

 

 

 

 

 

 

 

Total loss after tax

(84,134)

 

(253,718)

 

(451,160)

Interest received

2,362

 

2,687

 

5,668

Operating loss

(86,496)

 

(256,405)

 

(456,828)

 

 

 

 

 

Depreciation charge

3,088

 

4,120

 

              8,293

Impairment charge

-

 

7,140

 

7,140

Share based payment charge

(13,850)

 

51,610

 

88,506

Non-cash movement of liability under Equity Swap Agreement

 

(72,708)

 

 

-

 

(20,300)

(Increase)/decrease in receivables

(3,071)

 

540

 

(5,554)

(Decrease)increase in payables

(26,589)

 

(12,434)

 

18,709

 

 

 

 

 

 

 

 

 

 

Net cash outflow from operating activity

(199,626)

 

(205,429)

 

(360,034)

 

 

 

 

 

Investing activity

 

 

 

 

 

 

 

 

 

Interest received

2,362

 

2,687

 

            5,668

Purchase of intangible assets

(494,323)

 

(149,359)

 

(480,227)

Purchase of property, plant & equipment

(414)

 

(750)

 

(1,626)

Purchase of available for sale investment

(71,271)

 

-

 

(33,921)

 

 

 

 

 

 

 

 

 

 

Net cash outflow from investing activity

(563,646)

 

(147,422)

 

(510,106)

 

 

 

 

 

Financing activity

 

 

 

 

 

 

 

 

 

Issue of share capital (net of expenses)

154,750

 

        336,275

 

1,616,986

Net transfer from/(to) restricted cash

336,333

 

-

 

        (366,667)

 

 

 

 

 

 

 

 

 

 

Net cash inflow from financing activity

491,083

 

        336,275

 

1,250,319

 

 

 

 

 

Net (decrease)/increase in cash and cash

equivalents

 (272,189)

 

 (16,576)

 

380,179

 

 

 

 

 

Cash and cash equivalents at start of period

      1,187,612

 

       841,299

 

841,299

Exchange differences

(675)

 

(32,386)

 

(33,866)

 

 

 

 

Cash and cash equivalents at end of period

 914,748

 

 792,337

 

1,187,612

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Notes to the Interim Statement

 

1.       Basis of preparation

 

The consolidated interim financial information has been prepared in accordance with the accounting policies that are expected to be adopted in the Group's full financial statements for the year ending 30 September 2014 which are not expected to be significantly different to those set out in Note 1 of the Group's audited financial statements for the year ended 30 September 2013.  These are based on the recognition and measurement principles of IFRS in issue as adopted by the European Union (EU) and are effective at 30 September 2014 or are expected to be adopted and effective at 30 September 2014.  The financial information has not been prepared (and is not required to be prepared) in accordance with IAS 34. The accounting policies have been applied consistently throughout the Group for the purposes of preparation of this financial information.

 

The financial information in this statement relating to the six months ended 31 March 2014 and the six months ended 31 March 2013 has neither been audited nor reviewed pursuant to guidance issued by the Auditing Practices Board. The financial information for the year ended 30 September 2013 does not constitute the full statutory accounts for that period.  The Annual Report and Financial Statements for the year ended 30 September 2013 have been filed with the Registrar of Companies.  The Independent Auditors' Report on the Annual Report and Financial Statement for the year ended 30 September 2013 was unqualified, although did draw attention to  matters by way of emphasis in relation to going concern, and did not contain a statement under 498(2) or 498(3) of the Companies Act 2006.

 

          The directors prepare annual budgets and cash flow projections that extend beyond 12 months from the date of the last Annual Report. These projections include the proceeds of future fundraising necessary within the next 12 months to meet the Company's and Group's planned discretionary project expenditures and to maintain the Company and Group as a going concern. Although the Company has been successful in raising finance in the past, there is no assurance that it will obtain adequate finance in the future. This represents a material uncertainty related to events or conditions which may cast significant doubt on the entity's ability to continue as a going concern and, therefore, that it may be unable to realise its assets and discharge its liabilities in the normal course of business. However, the directors have a reasonable expectation that they will secure additional funding when required to continue meeting corporate overheads and exploration costs for the foreseeable future and therefore believe that the going concern basis is appropriate for the preparation of the financial statements.

 

2.       Loss per share

     

Loss per share has been calculated on the attributable loss for the period and the weighted average number of shares in issue during the period.

 

 




 

Six months

to 31 March

2014

Unaudited

Six months

to 31 March

 2013

Unaudited

Twelve months

 to 30 September

                   2013

Audited

 

 

 

 

Loss for the period (£)

           (84,134)

       (253,718)

          (451,160)

Weighted average shares in issue (No.)

   162,290,390

     32,435,280

     143,365,584

Basic loss per share (pence)

(0.05)

(0.19)

(0.31)

 

 

 

 

 

The loss attributable to ordinary shareholders and the weighted average number of ordinary shares used for the purpose of calculating diluted earnings per share are identical to those used to calculate the basic earnings per ordinary share.  This is because the exercise of share warrants would have the effect of reducing the loss per ordinary share and is therefore not dilutive under the terms of IAS33.

 

 

 

 

 

 

 

 

2.      Share capital  

 

During the six months to 31 March 2014the following share issues took place:

 

An issue of 200,000 new 1.0p ordinary shares at 2.375p per share, being a share warrant exercise by an employee, for a total consideration of £4,750 (14 January 2014).

 

An issue of 2,000,000 new 1.0p ordinary shares at 7.50p per share, being a share warrant exercise by Darwin Strategic Limited, for a total consideration of £150,000 net of expenses (20 February 2014).

 

Following the end of the current reporting period, in April 2014, the Company issued 1,490,000 new 1.0 pence ordinary shares to Darwin Strategic Limited at a gross price of 12p per share for a total consideration of £167,178, net of expenses, by drawing down on its £10 million Equity Finance Facility.

 

3.      Interim report

 

Copies of this interim report are available from Tertiary Minerals plc, Silk Point, Queens Avenue, Macclesfield, Cheshire SK10 2BB, United Kingdom.  It is also available on the Company's website at www.tertiaryminerals.com


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