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Lithic Metals&Energy (LMY)

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Thursday 26 November, 2009

Lithic Metals&Energy

Half Yearly Report

RNS Number : 1035D
Lithic Metals and Energy Limited
26 November 2009
 



Lithic Metals and Energy Limited

("Lithic" or the Company")


Interim results for the 6 months ended 30 September 2009


Lithic (AIM code: LMY), the AIM-quoted African nickel and uranium exploration company, today announces its interim results for the six months ended 30th September 2009.


Directors' report


I have pleasure in presenting the unaudited interim financial statements of Lithic for the six months ended 30 September 2009


Market conditions have been particularly challenging over recent months and following shareholder pressure for a change in strategy, new Board was appointed at a Special General Meeting convened in July this year and a strategic review of the business was immediately announced. Whilst this has been ongoing, the Company has significantly reduced its exploration expenditure across all assets.


On 29 October 2009 the Company announced the intention to acquire the entire issued capital of Amber Petroleum Limited, a private company incorporated in the British Virgin Islands whose focus is on investment in junior uranium mining and exploration companies. On the same day trading in the Company's shares on the London Stock Exchange was suspended.


It is anticipated that the Acquisition, and the New Business Strategy and as a result of this an increase in the authorised capital of the Company will be put before a Special General Meeting (SGM) to be convened in due course. It is anticipated that the SGM will approve the completion of the transaction and admission of the enlargeshare capital of the Company to be admitted to AIM before 31 December 2009. 


The board is committed to creating an International mining and exploration group focused on acquiring and developing resource projects, in particular uranium and nickel assets. The Acquisition of Amber Petroleum Limited is an integral part of this strategy. The Board look forward to providing additional updates in due course.




Financial Information


The Company and it subsidiaries report a deficit after tax for the half year ended 30 September 2009 of £586,073 (compared to a deficit of £305,977 for the six months ended 30 September 2008).


No dividend was paid or declared during the period.


The basic deficit and diluted deficit per share for the period was 0.46 pence (30 September 2008: 0.20 pence). 


For more information please contact:


David Weill

Nicola Marrin/Catherine Leftley

Laurence Reed

Lithic Metals & Energy Ltd

Seymour Pierce

Threadneedle Communications

Tel: +44 (0) 207 881 0180

Tel: +44 (0) 207 107 8000

Tel: +44 (0) 20 7936 9696


 

 

 

 


Condensed Consolidated Statement of Comprehensive Income 


For the six months ended 30 September 2009




Note

Unaudited 

six months ended


Unaudited six months ended


Audited 

year 

ended



September 2009


September 2008


March 

2009



£


£


£

Total revenue

Impairment charge

Other expenses

3


3

28,268

(565)

(613,776)


222,982

-

(528,959)


310,082

(1,982,193)

(930,527)

Deficit before income tax 


(586,073)


(305,977)


(2,602,638)

Deficit before and after tax for the half-year


(586,073)


(305,977)


(2,602,638)








Other comprehensive income:







Exchange differences on translation of foreign entities 


36,886


158,570


798,969

Income tax effect


-


-


-

Total other comprehensive income


36,886


158,570


798,969








TOTAL COMPREHENSIVE INCOME/(DEFICIT)

- attributable to owners



(549,187)



(147,407)



(1,803,669)















Earnings per share:







Basic and diluted deficit per share (pence)

4

(0.46)


(0.20)


(1.78)





Condensed Consolidated Statement of Cash Flows


for the six months ended 30 September 2009



Unaudited 

six months ended


Unaudited 

six months ended


Audited 

Year 

ended


September 2009


September 2008


March

 2009


£


£


£

Cash flows from operating activities

Payments to suppliers and employees

Interest received

Management fee received


(528,839)

2,499

-



(534,578)

99,690

122,893



(744,431)

122,434

-

Net cash utilised by operating activities

(526,340)


(311,995)


(621,997)

Cash flows from investing activities

Payments for mineral exploration activities

Payments for business development projects

Payments for property, plant and equipment

Proceeds from Insurers and on sale of assets


(4,011)

(84,697)

-

-



(541,301)

(886,213)

(156,662)

-



(1,126,237)

(1,317,281)

(142,988)

4,706

Net cash utilised by investing activities

(88,708)


(1,584,176)


(2,581,800)

Cash flows from financing activities

Share issue costs


-



-



(153,100)


Net cash generated from financing activities

-


-


(153,100)







Net increase/(decrease) in cash and cash equivalents

Cash and cash equivalents at beginning of the period

(615,048)

1,563,912


(1,896,171)

4,920,809


(3,356,897)

4,920,809

Cash and cash equivalents at end of the year - (Note 7)

948,864


3,024,638


1,563,912



Condensed Consolidated Statement of Financial Position


at 30 September 2009



Note

Unaudited


Unaudited


Audited



September 2009


September 2008


March 2009



£


£


£

ASSETS







Non-current assets

Property, plant and equipment

Mineral properties

Other assets



5

6


206,056

2,936,020

1,722,626



288,824

3,724,883

1,126,067



294,443

2,932,009

1,522,120

Total non current assets


4,864,702


5,139,774


   4,748,572

Current assets

Trade and other receivables

Prepayments 

Cash and cash equivalents




7


87,278

85,032

948,864



130,620

133,321

3,024,638



137,997

50,148

1,563,912

Total current assets


1,121,174


3,288,579


1,752,057

Total assets


5,985,876


8,428,353


6,500,629

EQUITY AND LIABILITIES







Current liabilities

Trade and other payables

Provisions



224,931

9,896



317,000

36,370



169,699

41,248

Total liabilities


234,827


353,370


210,947


Equity

Issued capital

Share premium account

Options and Warrants Reserve

Foreign currency translation reserve

Accumulated deficit



9

9

10

10

10




1,262,972

7,815,178

295,899

795,040

(4,418,040)




1,522,972

7,838,278

272,492

113,251

(1,672,010)




1,392,972

7,815,178

285,346

758,153

(3,961,967)

Total equity

5,751,049


8,074,983


6,289,682

Total equity and liabilities

5,985,876


8,428,353


6,500,629


 

 

 

Condensed Statement of Changes in Equity


for the six months ended 30 September 2009







£

Issued Capital



Opening balance as at 1 April 2008


1,522,972

Issued during the period


-

Closing balance as at 30 September 2008


1,522,972

Share buy-back

Closing balance as at 31 March 2009

Additional transfer on share buy-back

Closing balance as at 30 September 2009



(130,000)

1,392,972

(130,000)

1,262,972


Share Premium Reserve 



Opening balance as at 1 April 2008


7,838,278

Premium on shares issued during the period


-

Closing balance as at 30 September 2008


7,838,278

Share buy-back during year

Closing balance as at 31 March 2009 and 30 September 2009


(23,100

7,815,178


Options & Warrants Reserve



Opening balance as at 1 April 2008


180,821

Recognition of share-based payments


91,671

Closing balance as at 30 September 2008


272,492

Recognition of share-based payments

Closing balance as at 31 March 2009

Recognition of share-based payments

Closing balance as at 30 September 2009


12,854

285,346

10,553

295,899


Accumulated Deficit



Opening balance as at 1 April 2008

Deficit for the period


(1,366,033)

(305,977)

Closing balance as at 30 September 2008


(1,672,010)

Deficit for the period

Closing balance as at 31 March 2009

Deficit for the period

Reserve movement on share buy-back

Closing balance as at 30 September 2009



(2,289,957)

(3,961,967)

(586,073)

130,000

(4,418,040)


Foreign Currency Translation Reserve



Opening balance as at 1 April 2008


(40,816)

Exchange differences arising on translation of foreign operations


154,067

Closing balance as at 30 September 2008

Exchange differences arising on translation of foreign operations

Closing balance as at 31 March 2009

Exchange differences arising on translation of foreign operations

Closing balance as at 30 September 2009



113,251

644,902

758,153

36,887

795,040




Total of shareholders equity at 30 September 2009


5,751,049



Selected Explanatory Notes to the Interim Financial Statements


1. Key accounting policies


Lithic Metals and Energy Limited (hereafter "Lithic" or the "Company") is a company registered and domiciled in Bermuda whose principal activities comprise minerals exploration and development for the benefit of shareholders.


The Company's registered office is:

Canon's Court
2 Victoria Street

Hamilton HM 12
Bermuda


The financial statements incorporate the principal accounting policies as set out in the annual financial statements to 31 March 2009, a selection of which are set out below. Accounting policies of the subsidiaries are consistent with those of the holding company.


Statement of compliance

The Group's annual financial statements are prepared in accordance with International Financial Reporting Standards (IFRS) adopted by the International Accounting Standards Board (IASB) and interpretations issued by the International Financial Reporting Interpretations Committee of the IASB. These interim financial statements are prepared in accordance with IAS34 'Interim Financial Reporting'.


Basis of preparation

The Group financial statements are prepared on the historical cost basis. Cost is based on the fair values of the consideration given in exchange for assets. All amounts are presented in Pounds Sterling, unless otherwise noted.


The preparation of IFRS financial statements requires the use of certain critical accounting estimates and requires management to exercise a higher degree of judgement in the process of applying the Group's accounting policies. Significant estimates used in the preparation of these consolidated financial statements include, amongst other things, plant and equipment, the expected economic lives of and the future operating results and net cash flows expected to result from the utilization of resource properties and the estimated values of options. Actual results may differ from those estimates. 


Going concern 

The financial statements have been prepared on the basis that the consolidated entity is a going concern, which contemplates the continuity of normal business activity, realisation of assets and the settlement of liabilities in the normal course of business. If the consolidated entity chooses to maintain its current high level of expenditure on specific projects, it will have to raise additional capital. If the consolidated entity does not raise additional capital in the short term it can continue as a going concern by substantially reducing exploration expenditure until funding is available, without jeopardising its commitment base on those specific projects. The consolidated entity always has the opportunity to enter into joint venture arrangements to fulfil ongoing exploration expenditure or apply for expenditure exemptions. The Directors are of the opinion that the basis upon which the financial statements are prepared is appropriate in the circumstances. However, if an event were to arise where the consolidated entity could not raise additional equity capital or reduce its current rate of exploration expenditure by entering into joint ventures in order to remain as a going concern, there is no certainty as to whether the consolidated entity could realise assets at the amounts as shown in the financial statements and extinguish liabilities in the normal course of business.



Principles of consolidation

 

            a) Subsidiaries

The consolidated financial statements incorporate the assets and liabilities of Lithic and its subsidiaries (hereafter the "Group" or "Consolidated Entity") as at 30 September 2009, and the results of its subsidiaries for the six month period then ended. Subsidiaries are those entities over which the Group has the power to govern the financial and operating policies, generally accompanying a shareholding of more than fifty percent of the voting rights so as to obtain benefits from its activities. The existing and effect of potential voting rights which are currently exercisable or convertible are considered when assessing whether the Group controls another entity.


Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are de-consolidated from the date that control ceases.


The purchase method of accounting is used to account for the acquisition of subsidiaries by the Group. Inter-company transactions, balances and unrealised gains on transactions between Group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the asset transferred. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group.


Minority interests (when relevant) in the results are shown separately in the consolidated income statement and balance sheet respectively.


The Group financial statements incorporate the assets, liabilities and results of operations of the Company and its subsidiaries acquired and disposed of during a financial period. These assets, liabilities and results are included from the effective dates of acquisition to the effective dates of disposal. Where necessary, the accounting policies of subsidiaries are changed to ensure the consistency with the policies adopted by the Group.


b) Joint ventures 

Joint venture operations, if any, are accounted for using the equity method and are carried at cost by the parent entity. Under the equity method, the share of the profits and losses of the joint venture is recognised in the statement of comprehensive income. Profits or losses on transactions establishing the joint venture are eliminated to the extent of the Group's ownership interest until such time as they are realized by the joint venture partnership on consumption or sale, unless they relate to an unrealized loss that provides evidence of the impairment of an asset transferred


Mineral exploration expenditure

Exploration and evaluation costs incurred by the Group are accumulated separately for each area of interest. Such costs comprise net direct costs and an appropriate portion of related overhead costs, but do not include general overheads or administrative costs that do not have a specific association with a particular area of interest. Exploration and evaluation costs are carried forward to the extent that:


a) such costs are expected to be recouped through the successful development and utilisation of the area of interest, or alternatively by its sale; or


b) exploration and evaluation activities in the area of interest have not reached a stage which permits a reasonable assessment of the existence or otherwise of economically recoverable reserves.


In the event that an area of interest is abandoned or if the Directors consider the costs incurred exceed the area of interest's recoverable amount, accumulated costs carried forward are written off in the year in which that assessment is made.


Exploration and evaluation costs are not carried forward in respect of any area of interest unless the Group's right of tenure to the property is current. Depletion is not charged on areas of interest under development until commercial production commences, at which time it will be recorded using a units of production basis which will be based on the mineral mined at each area of interest relative to the estimated resource relating of that area of interest.


Joint venture management fees

A management fee is earned on expenditure incurred on the Uranium Joint Venture at a rate of 20% of the underlying costs incurred in Zambia. This income is recognised in the consolidated statement of comprehensive income with a corresponding amount capitalised to business development costs.



Revenue recognition

Interest revenue is recorded on a time proportion basis, based on the effective yield of the asset. The effective yield of the asset is the rate of interest required to discount the stream of future cash receipts, expected over the life of the financial asset, to equate to its net carrying amount.


Foreign currency

The individual financial statements of each Group entity are presented in the currency of the primary economic environment in which the entity operates (its functional currency). For the purpose of the consolidated financial statements, the results and financial position of each entity are expressed in Pounds Sterling which is the functional currency of Lithic Metals and Energy Limited and is the presentation currency for its consolidated financial statements.


Foreign currency translations are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the income statement, except when deferred in equity as qualifying cash flow hedges and qualifying net investment hedges.


Translation differences on non-monetary items, such as equities held at fair value through the profit and loss, are reported as part of the fair value gain or loss. 


The results and financial position of the Group entities (none of which has the currency of a hyperinflationary economy) that have a functional currency different from the presentation currency are translated into the presentation currency as follows: 

  • Assets and liabilities for each balance sheet presented are translated at the closing rate at the date of that balance sheet.

  • Income and expenses for each income statement are translated at average rates (unless this is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction date, in which case income and expenses are translated at the dates of the transactions); and

  • All resulting exchange differences are recognised as a separate component of equity.


On consolidation, exchange differences arising from the translation of any net investment in foreign entities and borrowings are taken to shareholders equity. When a foreign operation is sold or borrowings repaid, a proportionate share of such exchange differences are recognised in the income statement as part of the gain or loss on sale.


Earnings per share and dilutive earnings per share


Basic earnings per share is calculated by dividing the profit attributable to equity holders of the Company, excluding any costs of servicing equity other than ordinary shares, by the weighted average number of ordinary shares outstanding during the financial year, adjusted for bonus elements in ordinary shares issued during the year.


Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account the after tax effect of interest and other finance charges associated with diluted potential ordinary shares and the weighted average number of shares assumed to have been issued for no consideration in relation to dilutive potential ordinary shares.


2.         Segmental information

Lithic has early adopted IFRS 8 'Operating Segments'. Lithic operates in three reporting geological areas and reports to management on a project by project basis. During the financial year Lithic operated in:

 

                a.     Zambia - exploring for Nickel and Uranium.

                b.     Togo - exploring for Uranium, Nickel, Zinc and Chromite. 

                c.     Mozambique - exploring for Nickel


As the projects are all in exploration phase no segmental revenue or segment results are disclosed. Lithic's policy is to capitalise all exploration expenditure where it has legal tenure to the exploration licences and such expenditures are expected to be recouped through the successful development and utilization of the area of interest, or alternatively by its sale or the exploration and evaluation activities at each area of interest have not reached a stage which permits a reasonable assessment of the existence or otherwise of economically recoverable reserves. All exploration expenditure is accumulated on an area of interest basis and reflected in the balance sheet under "Mineral Properties".


Each project is a reportable segment where it comprises at least 10% of the capitalised exploration costs. Where the aggregate of reportable segments are not within 75% of total exploration costs capitalised, additional segments are sought and disclosed so that all reportable segments comprise at least 75% of total capitalised exploration costs. No reportable segment has been merged or aggregated together to meet the 10% rule mentioned above.

                                        




Capitalised exploration costs



Country

Mineral/Metals

Acquisition costs

Exploration costs


Total




£

£

£

Asset reconciliation - September 2009






 

 

 

 

 

 

 - Haito Togo Nickel/Chromite 309,093 545,159 854,252
 - Pagala Togo Zinc 309,093 205,459 514,552
 - Niamtougou Togo Uranium 309,093 239,439 548,532

 - Kara

Togo

Uranium

309,092

91,803

400,895

 - Mavita

Mozambique

Nickel

-

617,789

617,789

Segmental exploration assets




1,236,371

1,699,649

2,936,020

Segmental property, plant and equipment






 - Zambia





70,196

 - Togo





109,945

 - Mozambique





335

Other assets in Bermuda (see Note 6)





1,722,626

Unallocated assets





1,146,754







Total assets



5,985,876



 
 
 
Capitalised exploration costs
 
 
Country
Mineral/Metals
Acquisition costs
Exploration costs
 
Total
 
 
 
£
£
£
Asset reconciliation - March 2009
 
 
 
 
 
 
 
 
 
 
 
 - Haito
Togo
Nickel/Chromite
309,093
571,627
880,720
 - Pagala
Togo
Zinc
309,093
215,445
524,538
 - Niamtougou
Togo
Uranium
309,093
184,448
493,541
 - Kara
Togo
Uranium
309,092
64,916
374,008
 - Mavita
Mozambique
Nickel
-
659,202
659,202
Segmental exploration assets
 
 
 
1,236,371
1,695,638
2,932,009
Segmental property, plant and equipment
 
 
 
 
 
 - Zambia
 
 
 
 
109,285
 - Togo
 
 
 
 
150,114
 - Mozambique
 
 
 
 
563
Other assets in Bermuda (see Note 6)
 
 
 
 
1,522,120
Unallocated assets
 
 
 
 
1,786,538
 
 
 
 
 
 
Total assets
 
 
6,500,629

 


 

During the year to 31 March 2009 Lithic impaired the Mitaba project in Zambia, and capitalised exploration costs associated with this project amounting to £1,982,193 were expensed as an impairment cost.

 

 

 
Liabilities Reconciliation

Total
 Liabilities

Total
 Liabilities
 
 Sept 09
 March 09
 
£
£
 
 
 
Zambia
17,418
14,562
Togo
21,635
34,681
Mozambique
1,885
2,111
Total segmental liabilities
40,938
51,354
Unallocated liabilities
193,889
159,593
Total liabilities
234,827
210,947


 

 

3Reconciliation of deficit


The deficit before income tax was after the following income and expenses:



Unaudited

six months ended

 September 2009

Unaudited 

six months ended

September 2008

Audited

 year ended 

March 2009


£

£

£

Interest income

2,499

99,690

122,434

Management fee received

25,769

122,893

183,947

Profit on asset write-off

-

399

73

Foreign exchange gains

-


3,628

Total revenue

28,268

222,982

310,082

Auditors' remuneration




- audit services

(6,263)

(5,800)

(35,725)

Depreciation

(8,901)

(7,934)

(17,053)

Directors' fees

(31,250)

(39,327)

(77,976)

Exploration expenditure written off

(565)

-

(1,982,193)

Foreign exchange losses

Interest expense

(221,617)

-

(73,617)

-

(120,675)

(5,767)

Other costs

(241,254)

(175,405)

(290,897)

Personnel costs - defined contribution plan

(7,334)

(13,159)

(25,278)

Personnel costs - salaries

(86,604)

(122,046)

(252,631)

Share-based payments 

(10,553)

(91,671)

(104,525)

Total expenses

(614,341)

(528,959)

(2,912,720)





Deficit for period

(586,073)

(305,977)

(2,602,638)


  

4Loss Per Share


The calculation of the loss and diluted loss per share is based on the deficit for the financial period of £586,073  (2008 - £305,977) and the weighted number of average ordinary shares of 126,297,197 (2008 - 152,297,197). No warrants or options have been taken into account for the diluted loss per share as the impact of these instruments is non-dilutive.


Shares

Unaudited

six months ended

 September 2009

Unaudited 

six months ended

 September 2008

Audited

year ended

March 2009

Basic weighted average number of ordinary shares on issue


126,297,197


152,297,197


145,832,716





Basic loss per share  (pence)

(0.46)

(0.20)

(1.78)


5Mineral Interests


a)  Reconciliation



Unaudited

six months ended

 September 2009

Unaudited 

six months ended

 September 2008

Audited

 year ended 

 March 2009


£

£

£





Opening balance

2,932,009

3,083,930

3,094,160

Exploration costs capitalised for the period

123,864

566,858

1,334,658

Exploration costs written off

(565)

-

(1,982,193)

Foreign exchange movements

(119,288)

74,095

485,384

As at 30 September 2008

2,936,020

3,724,883

2,932,009


b)  Exploration expenditure per project



Unaudited

six months ended

  September 2009

Unaudited 

six months ended

 September 2008

Audited

 year ended 

 March 2009


£

£

£

Group exploration projects




Mitaba

-

1,578,636

-

Haito 

854,252

606,473

880,720

Pagala

514,552

445,716

524,538

Niamtougou


548,532

419,738

493,541

Kara

400,895

331,839

374,008

Mavita

617,789

342,481

659,202

As at 30 September 2008

2,936,020

3,724,883

2,932,009


  

6Other assets



Unaudited

six months ended

  September 2009

Unaudited 

six months ended

 September 2008

Audited

 year ended 

 March 2009


£

£

£





Opening balance

1,522,120

204,839

205,816

Investment in uranium JV farm-in projects

200,506

921,228

1,316,304

Business development costs

1,722,626

1,126,067

1,522,120


Lithic is farming into a uranium Joint Venture with Zambezi Resources Limited. The costs associated with this farm-in are capitalised to business development projects and forms part of acquisition costs once the farm-in is earned. In the event that Lithic decides not to proceed with the Joint Venture, all costs capitalised to the Joint Venture will be expensed.


7Cash and cash equivalents


 

Unaudited

six months ended

  September 2009

Unaudited 

six months ended

 September 2008

Audited

 year ended 

 March 2009

 


 

£

£

£

Cash on hand and at bank

203,389

311,307

207,810

Cash on term deposits

745,475

2,713,331

1,356,102

Total cash and cash equivalents

948,864

3,024,638

1,563,912


8Investment in Subsidiaries


At 30 September 2009, the Company had interests in the following subsidiaries:


Company

Country of Incorporation

Holding Company

Class of Share Capital Held

% Held

Nature of Business

Investment Cost

 

 

 

 

 

 

£

MR Nickel (Bermuda) Limited

Bermuda

Lithic Metals and Energy Limited

Ordinary

100

Exploration

7,500

MR Nickel Limited

Zambia

MR Nickel (Bermuda) Limited

Ordinary

100

Exploration

12

Zambezi Niquel Mozambique Limitada

Mozambique

MR Nickel (Bermuda) Limited

Ordinary

100

Exploration

420

Regent Resources Capital Corporation Limited (BVI)

British Virgin Islands

Lithic Metals and Energy Limited

Ordinary

100

Exploration

1,246,566

Regent Resources Capital Corporation SAU

Togo

RRCC (BVI) Limited

Ordinary

100

Exploration

10,195


Loans by the Company to its subsidiaries are at call, interest free with no agreed fixed terms of repayment. The Company has undertaken not to recall the loans within 12 months from the date of this report unless the respective subsidiaries are in a financial position to do so. The balance owing by subsidiaries at 30 September 2009 was £2,014,682 (30 September 2008; £1,568,694).


9Issued Capital


The Company has 302 million authorised ordinary par value shares at £0.01 each.



Number of Shares

Issued Capital


£

£

Issued and fully paid



Balance at 1 April 2008 

152,297,197

1,522,972

Share buy-back December 2008

(26,000,000)

(130,000)

Balance at 31 March 2009

126,297,197

1,392,972

Share buy-back December 2008 (note e)

-

(130,000)

Balance at 30 September 2008

126,297,197

1,262,972


Notes

  • There were 10,900,000 share options outstanding at the beginning and end of the period.

  • No options were issued or exercised in the period.

  • No options expired or were forfeited in the period.

  • The weighted average price of the share options outstanding at the end of the period was £0.12. 

  • The share buy-back in December 2008 was priced at 0.5p, less than the nominal value of the shares and a transfer to revenue reserves has been made in the current period for the difference between the cost of the shares and the nominal value of the shares bought back.  


10Reserves


 

Share premium reserve

Accumulated

 deficit

Foreign currency translation reserve

Options and warrants reserve

 

£

£

£

£

As at 1 April 2009

7,838,278

(3,961,967)

758,153

285,346

Movements during the period

(23,100)

(456,073)

36,887

10,553

As at 30 September 2009

7,815,178

(4,418,040)

795,040

295,899


  • The share premium reserve reflects the amounts received for the issuance of shares in excess of the par value of the share.

  • The accumulated deficit represents the Group's operational losses since incorporation.

  • The foreign currency translation reserve represents the foreign exchange movements on the translation of all foreign entities controlled by the Group. 

  • The options and warrants reserve represents the value of all share based payments made to directors, staff and other persons as measured by the Black Scholes valuation model. The respective amounts are transferred out of the reserve and into share capitalshare premium accounts and accumulated deficit as and when the options and warrants are exercised.


11Commitments


On 21 May 2008 the Group entered into a joint venture "Heads of Agreement" with Zambezi Resources Limited (hereafter "ZRL") and signed the farm-in Joint Venture agreement on 28 April 2008 in which Lithic has the right to explore for uranium on certain of ZRL's mining licences. In terms of the agreement Lithic is required to contribute in aggregate US$5 million, over a period of 2.5 years, for a 51% equity participation in both Oryx Resources Limited and Sothern African Resources Limited. To achieve the 51% holding, Lithic must still contribute US$1,924,275 in aggregate, to the respective companies.


The Group is party to a lease of business premises, being the former Head Office in Perth, Australia. The premises are leased for a fixed term of three years and include an option to renew. The lease is subject to an increase price adjustments being the maximum of 5% or current rental prices at that time. The lease expires in March 2011 at the reporting date the commitment under the lease was £77,396.


The Group had no contingent liabilities at 30 September 2009.


12Post-balance Sheet Events 


On 29 October 2009 the Company announced that as part of the continuing review of the business, the Company intends to acquire the entire issued capital of Amber Petroleum Limited, a private company incorporated in the British Virgin Islands via a share for share exchange. On the same day trading in the Company's shares on the London Stock Exchange was suspended.


A Special General meeting will be convened in due course to approve the transaction which will include increasing the authorised share capital to £30,000,000 and changing the name of the enlarged Company to AfNat Resources Limited. The board believes that trading in the Enlarged Share Capital will commence prior to 31 December 2009.

 


Authorised on behalf of the Board.

            


                

David Weill

Ozge Erdem

Director

Director

Date:   25 November 2009

Date:   25 November 2009




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