Interim Results
Noricum Gold Limited / EPIC: NMG / Sector: Natural Resources
13 September 2011
Noricum Gold Limited (`Noricum Gold' or `the Company')
Interim Results
Noricum Gold Limited, the Austrian focussed gold exploration and development
company, is pleased to announce its results for the six months ended 30 June
2011.
Overview
* Advanced portfolio of five highly prospective gold and precious metal
exploration and development projects
* Extensive historical data has enabled the progression of two projects,
Rotgülden and Kliening, to drilling status
* High grade values delineated from drilling at Kliening including 12.52 g/t
Au over 0.5 metres and 4.71 g/t over 0.5 metres, metres around these
samples currently being assayed
* Two clear targets identified at Kliening project for further exploration
* Five hole 1,800 metre drilling programme commenced at Rotgülden with
results anticipated during Q4 2011
* Exciting sampling results at Altenberg target, Rotgülden, indicating more
than one mineralised system and massive vein and breccia mineralisation
* Post period end, electromagnetic work at Rotgülden further bolsters strong
prospectivity and multi commodity potential of the site
* Mapping and sampling being undertaken at Schonberg
* Anticipate generating a steady flow of news as projects are developed
through the resource cycle
Chairman's Statement
Over the past six months, we have received encouraging results and met key
development milestones on schedule, as we advance our portfolio of highly
prospective gold and precious metal exploration and development projects in the
historic, high grade gold production region of south-central Austria.
We have five projects located in a known area of significant mineralisation and
extensive historical data has enabled us to progress two projects, Rotgülden
and Kliening, to drilling status. High grade values have been delineated from
drilling to date at Kliening, whilst drilling has just commenced at Rotgülden
with results anticipated during Q4 2011.
We are also gaining encouraging results from underexplored areas of our
licences and we are confident that the scale of all our projects will continue
to expand.
Rotgülden
The 51 sq km Rotgülden project hosts 15 historic underground mines including
the previously producing Rotgülden gold/copper/silver mine. Over the period we
have increased our knowledge of the project in order to progress it towards
drill ready status. Having received authorisation to commence drilling at the
project in August 2011, we commenced a five hole 1,800 metre drill programme,
conducted by Voest Alpine and we look forward to receiving the results from
this campaign in Q4 2011.
Historic work at the project identified massive sulphide ore (chalcopyrite/
pyrrhotite) (hole C2 identified 2.7 metres at 44g/t gold from 24.3 metres). In
line with this, we commenced an exploration programme in April 2011, which
included geophysical and geochemical work and electromagnetic (`EM') surveying
designed to identify further high grade gold, silver and copper drill targets
typical in the region. As announced in August 2011, the EM work encountered
multiple anomalies, continuing to highlight the strong prospectivity and
multi-commodity potential of the site.
Exploration has also been undertaken on the wider Rotgülden area in order to
identify the extent of mineralised strike extensions. Post period end, we
conducted mapping and sampling from the Altenberg Valley and the Schurfspitze
areas during a reconnaissance field trip, which traced the strike of
mineralisation southeast from Rotgülden. Following the receipt of encouraging
results from outcrop and grab samples, which included values up to 2.53 g/t Au,
428.4 g/t Ag, 1.47% Cu at Altenberg and 5.60g/t Au with 41.5 g/t Ag, and 4.45 g
/t Au with 5.6 g/t Ag at Schurfspitze, we believe that there is a continuation
of the mineralisation from the Rotgülden mine through both areas along a strike
length of approximately 8 km.
Unlike at Schurfspitze, where the geological setting and the mineralisation
encountered was similar to that at Rotgülden, the sampling at Altenberg
highlighted slightly different mineralisation characteristics with more than
one mineralised system and massive, vein and breccia mineralisation. This
target is particularly exciting and will be followed up going forward with a
view to advancing towards drilling during the field season in 2012.
Kliening
Our 49 sq km Kliening project was swiftly identified as being highly
prospective for gold and other precious metals due to the clearly defined
mineralised structures present in the area. Further to analysis of historical
data, we identified two clear targets for further exploration.
The first target is lode style mineralisation at Buchbauer-Bischofeck where a
drilling programme has been undertaken. Historic work highlighted the presence
of several groups of parallel vein swarms up to 100 metres apart and up to 2.5
metres wide, appearing 25 metres apart within the individual swarms. The area
has historically shown gold mineralisation as high as 23.6g/t gold.
Five holes have now been drilled to a total depth of approximately 1,200
metres. Highlights to date include hole BB-07-01 which recorded 12.52 g/t Au
over 0.5 metres and 4.71 g/t over 0.5 metres and results from infill samples
will be announced shortly. We have made the decision to temporarily stop
drilling at Kliening to enable Voest Alpine to fast track the drilling
programme at Rotgülden.
Schönberg
We are currently undertaking mapping and rock chip sampling at our 24 sq km
Schönberg licence, approximately 100 km due east of Rotgülden, located in an
historic copper mining zone.
Financial Review
As an exploration and development company which has no revenue we are reporting
a loss for the six months ended 30 June 2011 of £328,685 (2010: £2,933), which
is in line with budget.
In tandem with our listing on AIM at the end of 2010, we raised £2,120,000 and
the Group's cash position at the end of the period under review was £872,832.
Outlook
Our exploration efforts since listing in December 2010 have deepened our
knowledge of the mineralisation and prospectivity of the Rotgülden and Kliening
projects, whilst the high grade values we have reported to date underpin the
potential of our Austrian gold and precious metals portfolio. Importantly, our
activities continue to gain strong support from both the local communities and
the government with whom we are maintaining a transparent dialogue with regards
to developments across the portfolio.
Over the coming months, we anticipate generating a steady flow of news as we
develop our projects through the resource cycle. Our drilling campaign at
Rotgülden is gaining momentum and we also look forward to gaining results from
infill samples from our Kliening drilling campaign.
Finally, I would like to thank both our shareholders and our team for their
continued enthusiasm and support over the period.
Marcus Edwards-Jones
Chairman
12 September 2011
**ENDS**
For further information please visit www.noricumgold.com or contact:
Greg Kuenzel Noricum Gold Limited Tel: 020 3326 1726
Roland Cornish Beaumont Cornish Limited Tel: 020 7628 3396
James Biddle Beaumont Cornish Limited Tel: 020 7628 3396
Michael Parnes Old Park Lane Capital plc Tel: 020 7493 8188
Hugo de Salis St Brides Media & Finance Ltd Tel: 020 7236 1177
Elisabeth Cowell St Brides Media & Finance Ltd Tel: 020 7236 1177
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Notes 6 months to 6 months to
30 June 2011 30 June 2010
Unaudited Unaudited
£ £
Continuing operations
Revenue - -
Administration expenses (328,850) (2,933)
Other net (losses) / gains - -
Operating Loss (328,850) (2,933)
Finance income 165 -
Loss Before Taxation (328,685) (2,933)
Corporate tax expense - -
Loss for the period from continuing (328,685) (2,933)
operations attributable to equity owners of
the parent
Other comprehensive income
Exchange differences on translating foreign 39,744 -
operations
Total comprehensive income for the period (288,941) (2,933)
attributable to equity owners of the parent
Earnings per share from continuing
operations attributable to the equity owners
of the parent
Basic and diluted (pence per share) 6 0.066 0.002
CONDENSED CONSOLIDATED BALANCE SHEET
Notes 30 June 31 December
2011 2010
Unaudited Audited
£ £
Non-Current Assets
Property, plant and equipment 9,826 1,999
Intangible assets 5 996,995 814,534
Investment in subsidiaries - -
1,006,821 816,533
Current Assets
Trade and other receivables 224,768 33,535
Cash and cash equivalents 872,832 1,556,072
1,097,600 1,589,607
Total Assets 2,104,421 2,406,140
Current Liabilities
Trade and other payables 97,595 110,373
Total Liabilities 97,595 110,373
Net Assets 2,006,826 2,295,767
Capital and Reserves Attributable to
Equity Holders of the Company
Called up share capital - -
Share premium account 20,860,819 20,860,819
Reverse acquisition reserve (18,845,147) (18,845,147)
Share option reserve 551,401 551,401
Foreign currency translation reserve 39,744 -
Retained losses (599,991) (271,306)
Total Equity 2,006,826 2,295,767
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
Attributable to Owners of the Parent
Share Share Share Reverse Retained Total
capital Premium option acquisition losses equity
reserve reserve
£ £ £ £ £ £
As at 1 January 2010 7 - - - - 7
Comprehensive income
Loss for the year - - - - (2,933) (2,933)
Total comprehensive - - - - (2,933) (2,933)
income
Transactions with - - - - - -
owners
As at 30 June 2010 7 - - - (2,933) (2,926)
Attributable to Owners of the Parent
Share Share Reverse Foreign Retained Total
Premium option acquisition currency losses equity
reserve reserve translation
£ £ £ £ £ £
As at 1 January 20,860,819 551,401 (18,845,147) - (271,306) 2,295,767
2011
Comprehensive
income
Loss for the year - - - - (328,685) (328,685)
Currency - - - 39,744 - 39,744
translation
differences
Total comprehensive - - - 39,744 (328,685) (288,941)
income
Transactions with - - - - - -
owners
As at 30 June 2011 20,860,819 551,401 (18,845,147) 39,744 (599,991) 2,006,826
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
30 June 30 June
2011 2010
Unaudited Unaudited
£ £
Cash flows from operating activities
Operating loss (328,849) (2,933)
Adjustments for:
Depreciation 1,257 -
Share option expense - -
Impairment of goodwill - -
Foreign exchange (1,957) -
Increase in trade and other receivables (191,234) -
Decrease in trade and other payables (12,778) -
Net cash used in operations (533,561) (2,933)
Cash flows from investing activities
Interest received 165 -
Purchase of property, plant & equipment (9,084) -
Loans granted to subsidiary undertakings - -
Acquisition of subsidiary, net of cash - -
acquired
Exploration and evaluation activities (140,760) (84,372)
Net cash used in investing activities (149,679) (84,372)
Cash flows from financing activities
Proceeds from borrowings - 99,736
Net cash from financing activities - 99,736
Net decrease / (increase) in cash and cash (683,240) 12,431
equivalents
Cash and cash equivalents at beginning of 1,556,072 7
period
Cash and cash equivalents at end of period 872,832 12,438
NOTES TO THE INTERIM FINANCIAL STATEMENTS
1. General Information
The principal activity of Noricum Gold Limited (`the Company') and its
subsidiaries (together `the Group') is the exploration and development of
precious and base metals. The Company's shares are listed on the Alternative
Investment Market ("AIM") of the London Stock Exchange. The Company is
incorporated in the British Virgin Islands and domiciled in the United Kingdom.
The Company was incorporated on 10 February 2010 under the name Gold Mining
Company Limited. On 22 November 2010 the Company changed its name to Noricum
Gold Limited.
The address of the Company's registered office is Trident Chambers, PO Box 146,
Road Town, Tortola BVI.
2. Basis of Preparation
The condensed consolidated interim financial statements have been prepared in
accordance with the requirements of the AIM Rules for Companies. As permitted,
the Company has chosen not to adopt IAS 34 "Interim Financial Statements" in
preparing this interim financial information. The condensed interim financial
statements should be read in conjunction with the annual financial statements
for the year ended 31 December 2010, which have been prepared in accordance
with International Financial Reporting Standards (IFRS) as adopted by the
European Union.
The interim financial information set out above does not constitute statutory
accounts. They have been prepared on a going concern basis in accordance with
the recognition and measurement criteria of International Financial Reporting
Standards (IFRS) as adopted by the European Union. Statutory financial
statements for the year ended 31 December 2010 were approved by the Board of
Directors on 7 June 2011. The report of the auditors on those financial
statements was unqualified.
The 2011 interim financial report of the Company has not been audited but has
been reviewed by the Company's auditor, Littlejohn LLP, whose independent
review report is included in this Interim Report.
Going concern
The Directors, having made appropriate enquiries, consider that adequate
resources exist for the Group to continue in operational existence for the
foreseeable future and that, therefore, it is appropriate to adopt the going
concern basis in preparing the condensed interim financial statements for the
period ended 30 June 2011.
Risks and uncertainties
The Board continuously assesses and monitors the key risks of the business. The
key risks that could affect the Group's medium term performance and the factors
that mitigate those risks have not substantially changed from those set out in
the Group's 2010 Annual Report and Financial Statements, a copy of which is
available on the Group's website: www.noricumgold.com. The key financial risks
are liquidity risk, foreign exchange risk, credit risk, price risk and interest
rate risk.
Critical accounting estimates
The preparation of condensed interim financial statements requires management
to make estimates and assumptions that affect the reported amounts of assets
and liabilities and disclosure of contingent assets and liabilities at the end
of the reporting period. Significant items subject to such estimates are set
out in note 4 of the Group's 2010 Annual Report and Financial Statements. The
nature and amounts of such estimates have not changed significantly during the
interim period.
3. Accounting Policies
The same accounting policies, presentation and methods of computation have been
followed in these condensed interim financial statements as were applied in the
preparation of the Group's annual financial statements for the year ended 31
December 2010 except for the impact of the adoption of the Standards and
interpretations described below.
3.1Changes in accounting policy and disclosures
(a) New and amended standards, and interpretations mandatory for the first time
for the financial year beginning 1 January 2011 but not currently relevant to
the Group.
The following standards and amendments to existing standards have been
published and are mandatory for the Group's accounting periods beginning on or
after 1 January 2011 or earlier periods, but not currently relevant to the
Group.
A revised version of IAS 24 "Related Party Disclosures" simplified the
disclosure requirements for government-related entities and clarified the
definition of a related party. This revision was effective for periods
beginning on or after 1 January 2011.
An amendment to IFRS 1 "First-time Adoption of International Financial
Reporting Standards" relieved first-time adopters of IFRSs from providing the
additional disclosures introduced in March 2009 by "Improving Disclosures about
Financial Instruments" (Amendments to IFRS 7). This amendment was effective for
periods beginning on or after 1 July 2010.
Amendments to IFRS 7 "Financial Instruments: Disclosures" were designed to help
users of financial statements evaluate the risk exposures relating to transfers
of financial assets and the effect of those risks on an entity's financial
position. These amendments were effective for periods beginning on or after 1
January 2011 but are still subject to EU endorsement.
Amendments to IAS 32 "Financial Instruments: Presentation" addressed the
accounting for rights issues that are denominated in a currency other than the
functional currency of the issuer. These amendments were effective for periods
beginning on or after 1 February 2010.
IFRIC 19 "Extinguishing Financial Liabilities with Equity Instruments"
clarified the treatment required when an entity renegotiates the terms of a
financial liability with its creditor, and the creditor agrees to accept the
entity's shares or other equity instruments to settle the financial liability
fully or partially. This interpretation was effective for periods beginning on
or after 1 July 2010.
An amendment to IFRIC 14 "IAS 19 - The Limit on a Defined Benefit Asset,
Minimum Funding Requirements and their Interaction", on prepayments of a
minimum funding requirement, applies in the limited circumstances when an
entity is subject to minimum funding requirements and makes an early payment of
contributions to cover those requirements. The amendment permitted such an
entity to treat the benefit of such an early payment as an asset. This
amendment was effective for periods beginning on or after 1 January 2011.
(b) New standards, amendments and interpretations issued but not effective for
the financial year beginning 1 January 2011 and not early adopted
The Group's assessment of the impact of these new standards and interpretations
is set out below.
IFRS 10 "Consolidated Financial Statements" builds on existing principles by
identifying the concept of control as the determining factor in whether an
entity should be included within the consolidated financial statements of the
parent company. The standard provides additional guidance to assist in the
determination of control where this is difficult to assess. This standard is
effective for periods beginning on or after 1 January 2013, subject to EU
endorsement. The Directors are assessing the possible impact of this standard
on the Group's Financial Statements.
IFRS 11 "Joint Arrangements" provides for a more realistic reflection of joint
arrangements by focusing on the rights and obligations of the arrangement,
rather than its legal form (as is currently the case). The standard addresses
inconsistencies in the reporting of joint arrangements by requiring a single
method to account for interests in jointly controlled entities. This standard
is effective for periods beginning on or after 1 January 2013, subject to EU
endorsement. The Directors are assessing the possible impact of this standard
on the Group's Financial Statements.
IFRS 12 "Disclosure of Interests in Other Entities" is a new and comprehensive
standard on disclosure requirements for all forms of interests in other
entities, including joint arrangements, associates, special purpose vehicles
and other off balance sheet vehicles. This standard is effective for periods
beginning on or after 1 January 2013, subject to EU endorsement. The Directors
are assessing the possible impact of this standard on the Group's Financial
Statements.
IFRS 13 "Fair Value Measurement" improves consistency and reduces complexity by
providing, for the first time, a precise definition of fair value and a single
source of fair value measurement and disclosure requirements for use across
IFRSs. It does not extend the use of fair value accounting, but provides
guidance on how it should be applied where its use is already required or
permitted by other standards. This standard is effective for periods beginning
on or after 1 January 2013, subject to EU endorsement. The Directors are
assessing the possible impact of this standard on the Group's Financial
Statements.
IAS 27 "Separate Financial Statements" replaces the current version of IAS 27
"Consolidated and Separate Financial Statements" as a result of the issue of
IFRS 10 (see above). This revised standard is effective for periods beginning
on or after 1 January 2013, subject to EU endorsement. The Directors are
assessing the possible impact of this standard on the Group's Financial
Statements.
IAS 28 "Investments in Associates and Joint Ventures" replaces the current
version of IAS 28 "Investments in Associates" as a result of the issue of IFRS
11 (see above). This revised standard is effective for periods beginning on or
after 1 January 2013, subject to EU endorsement. The Directors are assessing
the possible impact of this standard on the Group's Financial Statements.
Amendments to IAS 1 "Presentation of Financial Statements" require items that
may be reclassified to the profit or loss section of the income statement to be
grouped together within other comprehensive income (OCI). The amendments also
reaffirm existing requirements that items in OCI and profit or loss should be
presented as either a single statement or two consecutive statements. These
amendments are effective for periods beginning on or after 1 July 2012, subject
to EU endorsement. The Directors are assessing the possible impact of these
amendments on the Group's Financial Statements.
Amendments to IAS 19 "Employment Benefits" eliminate the option to defer the
recognition of gains and losses, known as the "corridor method"; streamline the
presentation of changes in assets and liabilities arising from defined benefit
plans, including requiring re-measurements to be presented in other
comprehensive income; and enhance the disclosure requirements for defined
benefit plans, providing better information about the characteristics of
defined benefit plans and the risks that entities are exposed to through
participation in those plans. These amendments are effective for periods
beginning on or after 1 January 2013, subject to EU endorsement, and are not
expected to have an impact on the Group's Financial Statements.
4. Dividends
No dividend has been declared or paid by the Company during the six months
ended 30 June 2011 (2010: nil).
5. Intangible Fixed Assets
The movement in capitalised exploration and evaluation costs during the period
was as follows:
Exploration & Evaluation at Cost and Net Book £
Value
Balance as at 1 January 2011 814,534
Additions 140,760
Exchange rate variances 41,701
As at 30 June 2011 996,995
Exploration and evaluation assets are acquired.
6. Loss per Share
The calculation of the total basic loss per share of 0.066 pence (2010: 0.002)
is based on the loss attributable to equity owners of the parent company of £
328,685 (2010: £2,933) and on the weighted average number of ordinary shares of
497,234,155 (2010: 180,000,000) in issue during the period.
In accordance with IAS 33 the weighted average number of shares used for the
comparative period and the period prior to acquisition has been restated for
the effect of the reverse acquisition.
No diluted earnings per share is presented as the effect on the exercise of
share options would be to decrease the loss per share.
Details of share options that could potentially dilute earnings per share in
future periods are disclosed in the notes to the Group's Annual Report and
Financial Statements for the year ended 31 December 2010.
7. Commitments
The Group had capital expenditure contracted for at the end of the reporting
period but not yet incurred of £45,845 relating to intangible exploration
assets. All other commitments remain as stated in the Group's Annual Financial
Statements for the year ended 31 December 2010.
8. Approval of interim financial statements
The Condensed interim financial statements were approved by the Board of
Directors on 12 September 2011.
Independent Review Report to Noricum Gold Limited
Introduction
We have been engaged by Noricum Gold Limited to review the condensed set of
Financial Statements in the half-yearly financial report for the six months
ended 30 June 2011 which comprise the condensed consolidated statement of
comprehensive income, condensed consolidated balance sheet, consolidated
statement of changes in equity, condensed consolidated cash flow statement and
related notes. We have read the other information contained in the half-yearly
financial report and considered whether it contains any apparent misstatements
or material inconsistencies with the information in the condensed set of
Financial Statements.
Directors' Responsibilities
The half-yearly financial report is the responsibility of, and has been
approved by, the Directors. The Directors are responsible for preparing the
half-yearly financial report in accordance with the AIM Rules for Companies.
The annual Financial Statements of the Group are prepared in accordance with
IFRSs as adopted by the European Union. The condensed set of Financial
Statements included in this half-yearly financial report has been prepared in
accordance with the requirements of the AIM Rules for Companies.
Our Responsibility
Our responsibility is to express to the Company a conclusion on the condensed
set of Financial Statements in the half-yearly financial report based on our
review. This report, including the conclusion, has been prepared for and only
for the Company for the purpose of the AIM Rules for Companies and for no other
purpose. We do not, in producing this report, accept or assume responsibility
for any other purpose or to any other person to whom this report is shown or
into whose hands it may come save where expressly agreed by our prior consent
in writing.
Scope of review
We conducted our review in accordance with the International Standard on Review
Engagements 2410 "Review of Interim Financial Information Performed by the
Independent Auditor of the Entity" issued by the Auditing Practices Board for
use in the United Kingdom. A review of interim financial information consists
of making enquiries, primarily of persons responsible for financial and
accounting matters, and applying analytical and other review procedures. A
review is substantially less in scope than an audit conducted in accordance
with International Standards on Auditing (UK and Ireland) and consequently does
not enable us to obtain assurance that we would become aware of all significant
matters that might be identified in an audit. Accordingly, we do not express an
audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to
believe that the condensed set of Financial Statements in the half-yearly
financial report for the six months ended 30 June 2011 is not prepared, in all
material respects, in accordance with the AIM Rules for Companies.
Littlejohn LLP
Chartered Accountants and Registered Auditors
1 Westferry Circus
Canary Wharf
London
E14 4HD
12th September 2011
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