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Gemstones of Africa (EDL)

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Friday 25 September, 2009

Gemstones of Africa

Interim Results

RNS Number : 6412Z
Gemstones of Africa Group PLC
25 September 2009
 

gemstones of africa group plc


('GOA' or the 'Company' OR THE 'group')


UNAUDITED INTERIM RESULTS 

FOR THE SIX MONTHS ENDED 30 JUNE 2009


The Board of Gemstones of Africa Group Plc is pleased to announce unaudited interim results for the six month period to 30 June 2009


chairman's statement


I am pleased to report on the interim results of the Company for the six months ended 30 June 2009.


The Company made an operating loss of £94,945 for the period. The loss includes approximately £14,000 in respect of legal and professional fees associated with the investments made during the period. 


Since the last year end, the Company has made two investments which I reported to shareholders in my statement accompanying the financial statements for the year ended 31st December 2009:

 

     -  a collaboration and option agreement with Obtala Resources Plc leading to a joint venture agreement 
        on a group of emerald mining licences and a prospecting licence with ruby potential in Tanzania, Africa.

 

     -  an Option Agreement with Javan Investments Company Limited, a private Tanzaniacompany, for 
        two 
gemstone prospecting licences in Tanzania. The area is known to host sapphires, green and 
        red garnets, and rubies, with a number of artisanal workings nearby.


Despite the investments it has made, the Company has not been able to fully satisfy the requirements of the AIM Rules for Companies ('AIM Rules') that it has substantially implemented its investing strategy and therefore pursuant to Rule 15 of the AIM Rules, the Company's ordinary shares will be suspended from trading on AIM with effect from 7 a.m., on 30 September 2009, being the day following the anniversary of the Annual General Meeting of the Company at which shareholders gave consent to the Company's investing strategy. 


The board structure has recently been changed and as a consequence of the AIM requirement to effect a substantial acquisition, the directors are actively pursuing acquisition opportunities for the Company and will update the market with any developments accordingly. The Company's investing strategy remains unchanged. 


Simon Rollason

Chairman                                25 September 2009 



consolidated INCOME STATEMENT 

FOR THE SIX MONTHS ENDED 30 JUNE 2009





Six months ended 

30 June 09

Six months ended 

30 June 08

Year

ended 

31 Dec 08



Unaudited

Unaudited

Audited


Note

£

£

£






Turnover


-

-

-






Cost of sales


-

-

-



                

                

                

Gross profit


-

-

-



                

                

                






Administrative expenses


(94,945)

(25,078)

(126,356)






Other income


-

-

33,526



                

                

                

Operating loss


(94,945)

(25,078)

(92,830)



                

                

                






Investment revenue


-

3,252

4,072

Finance Costs


-

-

(182)



                

                  

                

Loss before taxation


(94,945)

(21,826)

(88,940)






Tax


-

-

-



                

                

                

Loss for the period 


(94,945)

(21,826)

(88,940)



                

                

                

Comprising:





Loss for the period from continuing operations


(94,945)

(28,119)

(95,233)

Loss for the period from discontinued operations


-

6,293

6,293



                

                

                



(94,945)

(21,826)

(88,940)



                

                

                






Attributable to:





Equity holders of the Company


(94,945)

(21,826)

(88,940)



                

                

                

Loss per share

2




- basic and diluted (pence)


(0.01)

(0.03)

(0.02)



                

                

                







consolidated STATEMENT OF COMPREHENSIVE INCOME

FOR THE SIX MONTHS ENDED 30 JUNE 2009




Six months ended 

30 June 09

Six months ended 

30 June 08

Year

ended 

31 Dec 08



Unaudited

Unaudited

Audited



£

£

£






Loss for the period 


(94,945)

(21,826)

(88,940)

Other comprehensive income:





Gain on closure of subsidiary company


-

-

66,351








                

                

                

Total recognised loss for the period


(94,945)

(21,826)

(22,589)



                

                

                







consolidated BALANCE SHEET 

as at 30 june 2009




As at

30 June 09

As at

30 June 08

As at

31 Dec 08



Unaudited

Unaudited

Audited


Note

£

£

£

ASSETS





Non-current assets





Investments - fair value through income statement

3

465,510

-

-



                

                

                



465,510

-

-

Current assets





Trade and other receivables


20,076

-

16,390

Cash and cash equivalents


394,045

3,031

491,421



                

                

                



414,121

3,031

507,811



                

                

                

Total Assets


879,631

3,031

507,811



                

                

                






EQUITY AND LIABILTIES





Called-up share capital


330,132

64,180

315,847

Share premium account


730,970

-

301,327

Merger reserve


-

66,351

-

Share option reserve


33,441

-

33,441

Retained earnings


(255,813)

(160,105)

(160,869)



                

                

                

Total equity


838,730

(29,574)

489,746



                

                

                

Current liabilities





Trade and other payables


40,901

32,605

18,065



                

                

                

Total liabilities


40,901

32,605

18,065



                

                

                

Total Equity and Liabilities


879,631

3,031

507,811



                

                

                








consolidated statement of changes in equity 

FOR THE SIX MONTHS ENDED 30 JUNE 2009










Share capital


Share premium

Share Option reserve


Merger reserve


Retained Earnings



Total


£

£

£

£

£

£








Balance at 1 January 2009

315,847

301,327

33,441

-

(160,868)

489,747

Total recognised loss for the period


-


-


-


-


(94,945)


(94,945)

Shares issued

14,285

429,643

-

-

-

443,928


              

              

            

              

              

              








Balance at 30 June 2009

330,132

730,970

33,441

-

(255,813)

838,730


               

                

            

              

                

              








Balance at 1 January 2008

641,796

624,066

-

66,351

(940,059)

392,154

Total recognised loss for the period


-


-


-


-


(21,825)


(21,825)

Capital reduction

(399,903)

-

-

-

-

(399,903)

Cancellation of share premium

-

(624,066)

-

-

624,066

-

Cancellation of deferred shares

(177,713)

-

-

-

177,713

-


              

              

            

              

              

              








Balance at 30 June 2008

64,180

-

-

66,351

(160,105)

(29,574)


              

              

            

              

              

              















Balance at 1 January 2008

641,796

624,066

-

66,351

(940,059)

392,154

Total recognised loss for the period

-

-

-

-

(22,589)

(22,589)

Capital reduction

(399,903)

-

-

-

-

(399,903)

Cancellation of share premium

-

(624,066)

-

-

624,066

-

Cancellation of deferred shares

(177,713)

-

-

-

177,713

-

On closure of subsidiary

-

-

-

(66,351)

-

(66,351)

Proceeds from shares issued

251,667

301,327

-

-

-

552,994

Share option reserve

-

-

33,441

-

-

33,441


              

              

            

              

              

              








Balance at 31 December 2008

315,847

301,327

33,441

-

(160,869)

489,746


              

              

            

              

              

              
















consolidated CASH FLOW STATEMENT 

FOR THE SIX MONTHS ENDED 30 JUNE 2009



Six months 

ended 

30 June 09

Six months ended 

30 June 08

Year

 ended 

31 Dec 08


Unaudited

Unaudited

Unaudited


£

£

£

Cash flows from operating activities




Operating loss

(94,945)

(25,078)

(92,830)

Profit on disposal of subsidiary

-

-

11,974

Share based payments

-

-

33,441

(Increase)/decrease in trade and other receivables

(3,687)

2,888

(10,439)

Decrease in trade and other payables

22,838

   (16,375)

(45,954)


              

              

              

Net cash from operating activities

(75,794)

(38,565)

(103,808)





Investing activities




Finance income

-

3,252

4,072

Proceeds from disposal group classified as held-for-sale


-


-


1

Purchase of investments - fair value through income statement

(19,082)

-

-


              

              

              

Net cash used in investing activities

(19,082)

(3,252)

(4,073)


                

                

                

Financing activities




Finance costs

-

-

(182)

Proceeds on issue of shares

-

-

600,000

Share issue costs

(2,500)

-

(47,006)

Capital reduction

-

(399,903)

(399,903)


              

              

              

Net cash generated/(used) in from financing activities

(2,500)

(399,903)

152,909


              

              

              





Net increase/(decrease) in cash and cash equivalents

(97,376)

(453,216)

53,174

Cash and cash equivalents at beginning of year

491,421

438,247

438,247


              

              

              





Cash and cash equivalents at end of year

394,045

3,031

491,421


              

              

              






NOTES TO THE INTERIM REPORT

FOR THE SIX MONTHS ENDED 30 JUNE 2009

 

1.      Financial Information and basis of preparation


The unaudited financial information comprises the consolidated interim balance sheets as at 30 June 2009 and 30 June 2008 and the related consolidated interim statements of income, changes in equity and cash flows and related notes for six months then ended hereinafter referred to as the 'financial information'.


The financial information, including the comparative figures for the year ended 31 December 2008; does not constitute statutory financial statements for the purposes of Section 240 of the Companies Act 1985. A copy of the statutory financial statements for the year ended 31 December 2008, prepared in accordance with the recognition and measurement criteria of the International Financial Reporting Standards (IFRS) as adopted by the European Union, has been delivered to the Registrar of Companies and contained an unqualified auditors' report in accordance with Section 235 of the Companies Act 1985.


The interim financial information has been prepared in accordance with the recognition and measurement requirements of IFRS as endorsed by the European Union. The Directors do not consider that there are any changes to the group's accounting policies set out in the 2008 Annual Report. As permitted, the Group has chosen not to adopt IAS 34 'Interim Financial Statements' in preparing this interim financial information.


The following new standard is mandatory for the first time for the financial year beginning 1 January 2009:


IAS 1(revised) Presentation of Financial Statements. The revised statement prohibits the presentation of items of income and expense (that is 'non-owner changes in equity') in the statement of changes in equity, requiring the 'non-owner changes in equity' to be presented separately from owner changes in equity. All 'non-owner changes in equity' are required to be presented in a performance statement. Entities can choose whether to present one performance statement (the statement of comprehensive income) or two statements (the income statement and statement of comprehensive income). The Company has decided to present two statements. The interim results have been prepared under the revised disclosure requirements.


 

2.      Loss per share


The calculation of the basic and diluted loss per share is based on the following data:



30 June 09

30 June 08

31 December 08


£

£

£

Loss after taxation

(94,945)

(21,826)

(88,940)





Weighted average number of shares

1,365,922,594

64,179,632

367,353,448





Loss per share (pence)

(0.01)

(0.03)

(0.02)


                

                

                


 

3.      Investments - fair value through income statement

On 13 March 2009, the Company entered into a joint venture agreement on a group of emerald mining licences in TanzaniaAfrica, with Obtala Resources Plc and Obtala's subsidiary Mindex Invest Limited. Under the terms of the option agreement the Company acquired the sole right and option to purchase an initial twelve and a half per cent beneficial interest in the licences in exchange for issuing common shares the equivalent of five per cent of the Company's share capital to Obtala (option 1), totalling 71,428,571 shares. This equity, which equated to a value of £446,428 (based on the closing price on 12 March 2009 of 0.625p per Ordinary Shares), is placed in Obtala treasury. 

On 27 May 2009, the Company signed an option agreement with Javad Investments Company Limited, a private Tanzanian registered Company for two prospecting licences in Tanzania. Under the terms of the option agreement the Company acquired an initial 25% interest in both licences for a cash consideration payment of US$15,000 per licence. The Company has the sole right and option to purchase an additional sixty percent (60%) beneficial interest in the licences, within 24 month of signing the Option Agreement, in exchange for a cash payment of US$75,000 for each individual licence. The Company has a further option to purchase an additional thirteen percent (13%) beneficial interest in the licences, within 48 month of signing the Option Agreement, in exchange for either a cash payment or the issuing of common shares, or a combination of both to the equivalent of US$200,000 for each individual licence. 

 

4.      Dividends

No dividends are proposed for the six months ended 30 June 2009 (six months ended 30 June 2008 £nil: year ended 31 December 2008 £nil).

 

5.      Distribution on interim report to shareholders


The interim report will be available for inspection by the public at the registered office of the company during normal business hours on any weekday and from the Company's website www.gemstonesofafrica.net. Further copies are available on request.


For further information contact:


 Simon Rollason, Chairman         Gemstones of Africa Group Plc    Tel: 020 7099 1940


Simon Leathers/Stewart Dickson 

Nominated Advisor & Broker     Daniel Stewart & Company         Tel: 020 7776 6550



This information is provided by RNS
The company news service from the London Stock Exchange
 
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