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Stratex Int PLC (ORR)

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Thursday 16 August, 2018

Stratex Int PLC

Interim Results

RNS Number : 9540X
Stratex International PLC
16 August 2018
 

Stratex International Plc

 

("Stratex", the "Company" or the "Group")

 

Interim Results

for the six-month period ended 30 June 2018

Stratex International Plc, the AIM-quoted gold exploration and development company, announces its unaudited Interim Results for the six-month period ended 30 June 2018 (the "Period").

Operational Highlights:

·    Key management changes including the appointment of Tim Livesey as the Group's CEO in March (Announcement dated 1 May 2018) and Bob Smeeton as its CFO in June (Announcement dated 30 May 2018). The Company had been in a process of refreshing the Board and further changes are to be announced imminently;

 

·    Senegal - in Q1-18, Canadian mid-tier IAMGOLD Corporation signed an option agreement with the Company to earn up to a 70% interest in the Company's Dalafin gold project in Senegal by spending US$8m over 6 years (Announcement dated 1 March 2018). A 5,750m drilling programme commenced in June at the southernmost Madina Bafé prospect (Announcement dated 31 May 2018);

 

·    Cameroon - In June the Company signed an option agreement with Bureau d'Etudes et d'Investigations Géologico-minières, Géotechniques et Géophysiques SARL ('BEIG3') to earn up to a 90% interest in BEIG3's early-stage gold projects in Cameroon by investing a total US$3.12m earn-in over 4 years;

 

·    Turkey - In February the Company's wholly-owned subsidiary, Stratex Madencilik Sanayi ve Ticaret Limited Şirketi ('Stratex Madencilik'), signed an exploration agreement with TET Madencilik Ltd. Şti. ('TET') for the Hasançelebi and Dogala licences which will result in a US$500,000 success-based payment on delivery of a minimum 100,000 oz indicated and inferred JORC-compliant gold resource (Announcement dated 15 February 2018).

 

·    Thani Stratex Resources Limited ('TSR') - At TSR's 50% owned Pandora project in Djibouti, drilling demonstrated broad zones of multi-gram gold mineralisation towards the north-western extent of the main outcropping Pandora vein, as well as on the related Pyrrha structure (Announcement dated 19 April 2018).

Financial Highlights:

·    The Group's pre-tax loss for the 6 months to 30 June 2018 was £3.30m, which compares to a profit in the same period for 2017 of £0.88m;

·    The increase in the pre-tax loss during the period arises primarily due to the cancellation of TSR's licences in Ethiopia which resulted in the impairment of the carrying value of the licences by TSR, and a write-off to its profit and loss of approximately US$8.7m. Stratex's share of this write-off was approximately US$2.7m;

·    The Company completed a £1.15m fund raise (before expenses) in June 2018 (Announcement dated 13 June 2018);

·    Repayment of a A$1.6m loan by Crusader Resources Limited;

·    The Company has significantly reduced its administrative and operational costs during the period to £1.04m compared to £1.49m in the 6 months ended 30 June 2017;
 

·    The cash balance of the Group as at 30 June 2018 was £2.31m.

 

Tim Livesey, CEO of Stratex, said: "The first half of 2018 has been a time of significant change at Stratex. With a change to Executive Management and the Board, the Company has been busy consolidating its existing and well-developed portfolio in Turkey, executing agreements for the advancement of the Dalafin project and refocusing on new early stage exploration projects in Europe and Africa, including our exciting new project in under-explored Cameroon.

 

The completion of a significant earn-in option agreement with IAMGOLD on the Dalafin Licence in March was excellent and we expect strong news flow over the coming months as the results of IAMGOLD's drill programme come through. The potential of this deal to lead to a defined resource, and ultimately commercial mining, is very real and we believe will add significant value for our shareholders.

 

As a management team we are confident that the clear strategic, operational and executive changes undertaken during the last eight months leave us in a very strong position from which Stratex can start achieving its true potential."

 

Chairman's Statement:

The first six months of 2018 have been a time for realignment on existing assets and for an organisational overhaul in the Group, following the failed bid for Crusader in 2017. We have a new CEO and CFO, new assets in Cameroon, and have signed a highly significant exploration earn-in agreement with IAMGOLD on the Dalafin licence in Senegal.

 

At Dalafin, IAMGOLD now have an option to take a 70% stake by spending a total of US$8 million, and have already begun a fast-tracked initial programme focused on the southernmost prospect, Madina Bafé, located within a few kilometres of IAMGOLD's 2.52 Moz Boto gold resource (Indicated and Inferred grading 1.61 g/t Au). A 5,750m drilling programme at Madina Bafé commenced in June and results from the first round of air-core drilling are expected towards the end of Q3-18.

 

In Cameroon, the Group is earning-in to two early-stage gold projects in what we believe to be an exciting new gold exploration district. These licenses are held by BEIG3, a well-connected and well-respected local technical logistics company and were previously explored by Reservoir Minerals Inc, until their takeover by Nevsun Resources in 2016.  We have committed to spend US$0.56m within the first year of the option and, subject to ongoing results, would expect to spend a total of US$3.12m over 4 years to earn-in to a 90% interest in the projects.

 

Cameroon and Senegal will be the main exploration operations for the Company over the next 6-12 months and we expect significant news flow towards the latter part of the year as both programmes ramp-up in October after the seasonal rains. We continue to review other early stage opportunities throughout Europe and Africa.

 

The Group has posted a pre-tax loss for the period of £3,301k (2017 - profit of £880k). This has largely resulted from TSR's US$8.7m write-off its Ethiopia portfolio following a cancellation of its licences by the relevant authorities, and a pro-rated write-off of US$2.7m for Stratex.

 

Administrative and operational costs of £1,048k compare to £1,488k in the prior year, with the reduction in part due to the successful sub-contracting of the Turkish team to the partners who are advancing our historic projects in the region.

 

We had a net cash inflow of £272k (2017: £4,396k), following the repayment of the Crusader loan (approximately £885k including compound interest of 12%, and the £1.15m fund raise (before expenses) which was undertaken in part to support our most recent venture in Cameroon. As disclosed in our 2017 Financial Statements we are in continuing discussions with HMRC regarding our VAT recovery position. During the period, as a protective, without prejudice measure, we have paid the £557k provided for in the 2017 Financial Statements.

 

In Q1-2018, we increased our investment in TSR from 30.1% to 30.4% for its projects in Egypt (100%-owned) and Djibouti (50%-owned) by committing further funding of £156k. This enabled the completion of the latest phase of drilling (3,036.50m in 18 holes) at the Pandora project in Djibouti, where drilling results announced in April reaffirmed our view of the potential of the region. In February TSR announced its intention to spin-off of its Djibouti portfolio (Announcement dated 1 February 2018) and we await an update in this regard.

 

In Turkey, the Group has delivered on its strategy to realise value from existing, lower priority projects by signing an exploration agreement with TET on its Hasançelebi and Doğala projects. Following an initial payment of US$50,000 to Stratex, the licences were transferred to TET, who are now spending US$1.5m on exploration and drilling over 2 years. TET will pay Stratex US$500,000 on delivery of a minimum JORC-compliant measured and indicated gold resource of 100,000 oz at Hasançelebi and Stratex retains a 1.5% net smelter returns ('NSR') royalty on both licences. As with a number of our other investments in Turkey, we continue to manage the exploration programmes at Hasançelebi and Doğala whilst recharging our costs to our partners.

 

During the period, the Group has also gained exposure to a further two gold projects in Burkina Faso through its 7.84% holding in private Australian company Aforo. The projects include a non-JORC gold resource of 98,000 oz @ 1.36 g/t Au. We look forward to further updates. 

 

With the Group now carving a new path for itself following the events of last year, I would like to take this opportunity to thank those that have supported and continue to support the Group on this journey, and also the entire team at Stratex. Having joined the Company in 2008, and experienced both the highs and lows that ensued, it is with mixed emotions that I announce my retirement from the Company and its Board with effect from 3 September 2018. Chris Worcester has also decided to step down at this time after great service to the Group for which I thank him. We have undertaken a thorough search process and identified our replacements, who will be announced imminently to commence their appointments simultaneously with our departures. I wish them and the Executive Directors all the best for the exciting times that lie ahead for the Group.

 

 

Peter Addison

Non-Executive Chairman

15 August 2018

 

 

 

 

 

Statement of Consolidated Comprehensive Income

 

 

 

 

 

 

 

 

Notes

6 months to

30 June 2018

Unaudited

£'000

 

6 months to

 30 June 2017

Unaudited

£'000

 

Continuing operations

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

-

 

-

 

Cost of sales

 

-

 

-

 

Gross Profit

 

-

 

-

 

Administration expenses

 

(1,039)

 

(1,488)

 

Exchange losses - net

 

(297)

 

(415)

 

Operating loss

 

(1,336)

 

(1,903)

 

Finance income

 

65

 

4

 

Share of losses of investments accounted for using the equity method

 

(2,030)

 

(34)

 

Loss on change of ownership status

 

-

 

(70)

 

Profit on sale of other financial assets

 

-

 

2,883

 

(Loss)/profit before income tax

 

(3,301)

 

880

 

Income tax

 

-

 

-

 

(Loss)/profit for the period

 

(3,301)

 

880

 

Other comprehensive income:

 

 

 

 

 

Items that may be reclassified subsequently to profit or loss:

 

 

 

 

 

Exchange differences on translation of foreign operations

 

327

 

(368)

 

Items that will not be reclassified subsequently to profit or loss

 

 

 

 

 

Change in fair value of other financial assets

 

(114)

 

-

 

Other comprehensive income net of tax

 

213

 

(368)

 

Total comprehensive income for the period

 

(3,088)

 

512

 

 

 

 

 

 

 

(Loss)/profit for the period attributable to:

 

 

 

 

 

 

Owners of the Parent Company

 

(3,280)

 

926

 

Non-controlling interest

 

(21)

 

(46)

 

(Loss)/profit for the period

 

(3,301)

 

880

 

 

 

 

 

 

 

Total comprehensive income attributable to:

 

 

 

 

 

Owners of the Parent Company

 

(3,067)

 

700

 

Non-controlling interest

 

(21)

 

(188)

 

Total comprehensive income for the period

 

(3,088)

 

512

 

 

 

 

 

 

 

Earnings per share - continuing operations:

 

 

 

 

 

Basic (pence)

 

8

(0.68)

 

0.20

 

Diluted (pence)

 

8

(0.68)

 

0.19

 

                               
 

 

Statement of Consolidated Financial Position

 

 

 

 

 

 

 

 

Notes

30 June

2018

Unaudited

£'000

 

 

30 June

2017

Unaudited

£'000

 

 

31 December 2017

Audited

£'000

 

 

ASSETS

 

 

 

 

 

 

 

Non-current assets

 

 

 

 

 

 

 

Property, plant and equipment

 

8

 

8

 

8

 

Intangible assets

4

6,463

 

6,419

 

6,484

 

Investments in equity-accounted associates

5

3,650

 

6,689

 

5,524

 

Other financial assets

 

467

 

1,118

 

581

 

Trade and other receivables

 

66

 

1,388

 

29

 

Deferred tax asset

 

167

 

244

 

198

 

 

 

10,821

 

15,866

 

12,824

 

Current assets

 

 

 

 

 

 

 

Trade and other receivables

 

66

 

231

 

976

 

Cash and cash equivalents

 

2,311

 

6,085

 

2,039

 

 

 

2,377

 

6,316

 

3,015

 

Total assets

 

13,198

 

22,182

 

15,839

 

 

 

 

 

 

 

 

 

EQUITY

 

 

 

 

 

 

 

Capital and reserves attributable to owners of the Company

 

 

 

 

 

 

 

Ordinary share capital

 

4,908

 

4,673

 

4,673

 

Share premium

 

21,253

 

20,427

 

20,427

 

Other reserves

 

2,044

 

2,390

 

1,683

 

Retained earnings

 

(15,247)

 

(5,831)

 

(11,853)

 

Total equity attributable to owners of the Company

 

12,958

 

21,659

 

14,930

 

Non-controlling interests

 

(37)

 

48

 

(16)

 

Total equity

 

12,921

 

21,707

 

14,914

 

 

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

 

Non-current liabilities

 

 

 

 

 

 

 

Employee termination benefits

 

29

 

38

 

35

 

 

 

29

 

38

 

35

 

Current liabilities

 

 

 

 

 

 

 

Trade and other payables

 

248

 

437

 

890

 

Total liabilities

 

277

 

475

 

925

 

Total equity and liabilities

 

13,198

 

22,182

 

15,839

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Statement of Consolidated Changes in Equity

 

 

 

Share

Capital

 

Share

Premium

 

Merger

Reserve

 

Share

option

reserve

 

Retained

Earnings

Translation

reserve

 

 

 

Total

equity

 

 

 

 

 

 

 

 

 

 

Total

Non-controlling interests

 

 

 

 

 

£'000

 

£'000

 

£'000

 

£'000

 

£'000

£'000

 

£'000

£'000

 

    £'000

 

As at 1 January 2018

4,673

20,427

 

(485)

 

476

 

(11,853)

 

1,692

 

14,930

(16)

 

14,914

 

 

 

Share based payments

-

 

(32)

 

-

 

34

 

-

 

-

 

2

-

 

2

 

 

 

Issue of share capital net of expense

235

 

858

 

-

 

-

 

-

 

-

 

1,093

-

 

1,093

 

 

 

Comprehensive income for the period:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

-       Loss for the period

-

 

-

 

-

 

-

 

(3,280)

 

-

 

(3,280)

(21)

 

(3,301)

 

 

 

-       Other comprehensive income

-

 

-

 

-

 

-

 

(114)

 

327

 

213

-

 

213

 

 

 

Total comprehensive income for the period

-

 

-

 

-

 

-

 

(3,394)

 

327

 

(3,067)

(21)

 

(3,088)

 

 

 

As at 30 June 2018

4,908

 

21,253

 

(485)

 

510

 

(15,247)

 

2,019

 

12,958

(37)

 

12,921

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As at 1 January 2017

4,673

20,427

 

(485)

 

590

 

(6,757)

 

2,484

 

20,932

2,860

 

23,792

 

 

 

Share based payments

-

 

-

 

-

 

27

 

-

 

-

 

27

-

 

27

 

 

 

Disposal of Non-controlling interest

-

 

-

 

-

 

-

 

-

 

-

 

-

(2,624)

 

(2,624)

 

 

 

Comprehensive income for the period:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

-       Profit for the period

-

 

-

 

-

 

-

 

926

 

-

 

926

(46)

 

880

 

 

 

-       Other comprehensive income

-

 

-

 

-

 

-

 

-

 

(226)

 

(226)

(142)

 

(368)

 

 

 

Total comprehensive income for the period

-

 

-

 

-

 

-

 

926

 

(226)

 

700

(188)

 

512

 

 

 

As at 30 June 2017

4,673

 

20,427

 

(485)

 

617

 

(5,831)

 

2,258

 

21,659

48

 

21,707

 

 

 

                                             

 

 

 

 

 

Statement of Consolidated Cash Flows

 

 

 

 

 

 

 

 

 

6 months to

30 June 2018

Unaudited

£'000

 

 

 

6 months to

30 June 2017

Unaudited

£'000

 

 

12 months to

31 December 2017

Audited

£'000

 

Cash flow from operating activities

 

 

 

 

 

 

 

Profit/(loss) before income tax

 

(3,301)

 

880

 

(5,382)

 

Share based payments

 

2

 

27

 

72

 

Depreciation

 

1

 

2

 

4

 

Share of losses of associates

 

2,030

 

375

 

151

 

Net loss on sale of associates                                                          

 

-

 

(2,534)

 

(1,674)

 

Fixed assets write-off

 

-

 

-

 

2

 

Other income and deductions

 

(65)

 

(4)

 

4,549

 

Foreign exchange movements on operating activities

 

533

 

(75)

 

(404)

 

Changes in working capital:

 

 

 

 

 

 

 

   Trade and other receivables

 

(103)

 

1,582

 

188

 

   Trade and other payables

 

(648)

 

48

 

(99)

 

Net cash flow from operating activities

 

(1,551)

 

301

 

(2,593)

 

Cash flows from investing activities

 

 

 

 

 

 

 

Purchase of property, plant, and equipment

 

(1)

 

(2)

 

(7)

 

Purchase of intangible assets

 

-

 

(32)

 

(32)

 

Investment in related companies

 

(156)

 

(302)

 

(451)

 

Costs related to aborted acquisition

 

-

 

-

 

(1,621)

 

Loan repayment from/(loan to) third party

 

822

 

-

 

(906)

 

Tax paid on former joint venture

 

-

 

-

 

(796)

 

Proceeds from sale of available-for-sale financial assets

 

-

 

-

6,047

 

Proceeds from disposal of discontinued operations

 

-

 

-

 

547

 

Interest received

     

65

 

4

 

46

 

Net cash flow from investing activities

 

730

 

(332)

 

2,827

 

Cash flows from financing activities

 

 

 

 

 

 

 

Net funds received from issue of shares

 

1,093

 

-

 

-

 

Funds received from partners

 

-

 

-

 

116

 

Funds received from sale of associate

 

-

 

4,427

 

-

 

Net cash flow from financing activities

 

1,093

 

4,427

 

116

 

Net increase in cash and cash equivalents

 

272

 

4,396

 

350

 

Cash and cash equivalents at beginning of the period

 

2,039

 

1,689

 

1,689

 

Cash and cash equivalents at end of the period

 

2,311

 

6,085

 

2,039

 

 

 

 

 

 

 

 

 

 

 

 

 

Notes to the unaudited financial statements

 

1. Basis of preparation

The condensed consolidated interim financial statements have been prepared used accounting policies which are consistent with International Financial Reporting Standards (IFRS). The condensed consolidated interim financial statements should be read in conjunction with the annual financial statements for the year ended 31 December 2017, which have been prepared in accordance with IFRS as adopted by the European Union.

 

2. Financial Information

The interim financial information set out above does not constitute statutory accounts within the meaning of the Companies Act 2006.  It has 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. Except as described below, the accounting policies applied in preparing the interim financial information are consistent with those that have been adopted in the Group's 2017 audited financial statements and are expected to be applied in the preparation of the 2018 financial statements. Statutory financial statements for the year ended 31 December 2017 were approved by the Board of Directors on 16 March 2018 and delivered to the Registrar of Companies. The report of the auditors on those financial statements was unqualified but contained a material uncertainty with regard to going concern.

 

Going concern

 

The Directors, having made appropriate enquiries, consider that adequate resources exist for the Group to continue into operational existence for the foreseeable future and therefore it is appropriate to adopt the going concern basis in preparing the condensed consolidated interim financial statements for the period ended 30 June 2018.

 

 

Risks and uncertainties

 

The key risks that could affect the Group's short and medium term performance and the factors that mitigate those risks have not substantially changed from those set out in the Group's 2017 Annual Report and Financial Statements, a copy of which is available on the Company's website:  www.stratexinternational.com. The Group's key financial risks are the availability of adequate funding and foreign exchange movements.

 

Accounting Policies.

 

Critical accounting estimates and judgements

 

The preparation of condensed consolidated 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 2017 Annual Report and Financial Statements. The nature and amounts of such estimates have not changed significantly during the interim period. The condensed consolidated interim financial statements have been prepared under the historical cost convention as modified by the measurement of certain investments at fair value.

 

With effect from 1 January 2018, the Group adopted IFRS 9 Financial Instruments and IFRS 15 Revenue from contracts, the impact of which is set out below. There have been no other changes in accounting policy during the period.


IFRS 9 Financial Instruments

IFRS 9 provides a single classification and measurement approach for financial assets that reflects the business model in which they are managed and their cash flow characteristics. The Group's financial assets are classified as measured at amortized cost, fair value through profit or loss, or fair value through other comprehensive income. Investments in equity instruments are classified as measured at fair value through profit or loss unless the Group elects, on an instrument-by-instrument basis, on initial recognition to recognize fair value gains and losses in other comprehensive income.  


Under IFRS 9, impairments of financial assets classified as measured at amortized cost are recognized on an expected loss basis which incorporates forward-looking information when assessing credit risk. Movements in the expected loss reserve are recognized in profit or loss.


The overall impact on transition to IFRS 9 on profit or loss is nil because the Group has elected to recognise the fair value gains and losses from investments in equity instruments through other comprehensive income. As permitted by IFRS 9 comparatives were not restated.

 

IFRS 15 Revenue from contracts

The Group does not currently have revenue and therefore there is no impact from adopting this new accounting standard.

 

The financial information for the 6 months ended 30 June 2018 and the 6 months ended 30 June 2017 has not been audited.

 

The business is not subject to seasonal variations. No dividends have been paid in the period (2017: £nil)

 

3. Operating Segments

Operating segments are reported in a manner which is consistent with internal reports provided to the Board and are used by the Directors to make strategic decisions. The management structure reflects these segments. The Group's exploration operations and investments are based in three geographical areas, namely Turkey, East Africa and West Africa. The Group's head office is located in the UK and provides corporate and support services to the Group and researches new areas of exploration opportunities.

 

The allocation of profits, losses, assets and liabilities by operating segment is as follows:

 

(Loss)/Profit for the period:

 

 

 

 

Turkey

£'000

East Africa

£'000

West Africa

£'000

UK

£'

Total

£'000

 

6 months to 30 June 2018

 

 

 

 

 

 

Administrative costs

(173)

-

(148)

(717)

(1,038)

 

Inter-segment charges

(126)

-

(85)

211

-

 

Finance income

-

-

-

65

65

 

Depreciation

-

-

-

(1)

(1)

 

Exchange losses

(377)

-

(25)

105

(297)

 

Share of losses of associates

-

(2,030)

-

-

(2,030)

 

Loss before Income Tax

(676)

(2,030)

(258)

(337)

(3,301)

 

 

 

 

 

 

 

 

6 months to 30 June 2017

 

 

 

 

 

 

Administrative costs

(184)

(122)

(185)

(995)

(1,486)

 

Inter-segment charges

(116)

-

(335)

451

-

 

Finance income

-

-

-

4

4

 

Depreciation

(1)

-

(1)

-

(2)

 

Exchange losses

(64)

-

(35)

(316)

(415)

 

Share of profits/(losses) of associates

-

107

(211)

-

(104)

 

Net loss on disposal of associates

2,883

-

-

-

2,883

 

Profit before Income Tax

2,518

(15)

(767)

(856)

880

 

               

 

Assets and liabilities:

 

 

 

 

Turkey

£'000

East Africa

£'000

West Africa

£'000

UK

£'000

Total

£'000

 

6 months to 30 June 2018

 

 

 

 

 

 

Intangible assets

-

-

6,463

-

6,463

 

Property, plant and equipment

2

-

1

5

8

 

Equity-accounted associates

-

3,650

-

-

3,650

 

Cash and other assets

236

240

234

2,367

3,077

 

Liabilities

(33)

-

(13)

(231)

(277)

 

Inter-segment

(2,316)

-

(1,704)

4,020

-

 

Net Assets

(2,111)

3,890

4,981

6,161

12,921

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6 months to 30 June 2017

 

 

 

 

 

 

Intangible assets

-

-

6,419

-

6,419

 

Property, plant and equipment

6

-

-

2

8

 

Equity-accounted associates

-

5,737

952

-

6,689

 

Cash and other assets

995

407

1,471

6,193

9,066

 

Liabilities

(50)

-

(20)

(405)

(475)

 

Inter-segment

(1,134)

-

(10,496)

11,630

-

 

Net Assets

(183)

6,144

(1,674)

17,420

21,707

 

               

 

 

Cash and other assets include cash and cash equivalents amounting to £2,311k at 30 June 2018 (2017: £6,085k).

 

4. Intangible assets

 

 

2018

£'000

2017

£'000

At 1 January

 

6,484

10,491

Exchange movements

 

(21)

(64)

Disposal due to change in ownership status

 

-

(4,040)

Additions

 

-

32

At 30 June

 

6,463

6,419

 

 

5. Investments in equity-accounted associates

 

 

2018

£'000

2017

£'000

At 1 January

 

5,524

5,758

Exchange movements

 

(34)

(313)

Share of (losses)/profits

 

(2,030)

(34)

Addition due to change in ownership status

 

10

1,319

Additions

 

156

301

Disposals

 

-

(671)

Share of new capital from third parties

 

24

329

At 30 June

 

3,650

6,689

 

Stratex's shareholding interest in Thani Stratex Resources Limited increased during the period to 30.4%.

 

 

6.  Related party transactions

Directors of the Company received total remuneration of £259,212 for the six months ended 30 June 2018 (six months ended 30 June 2017 - £364,004).

 

7.  Earnings per share

The calculation of earnings per share is based on the following:

 

     2018

    2017

(Loss)/profit attributable to equity holders (£'000)

(3,280)

926

Weighted average number of shares basic

481,641,220

467,311,276

Earnings per share basic (pence)

(0.68)

0.20

 

 

 

Weighted average number of shares diluted

481,641,220

497,316,420

Earnings per share diluted (pence)

(0.68)

0.19

 

 

 

 

As the Group incurred a loss for the period to 30 June 2018, no options or warrants are potentially dilutive in accordance with IAS 33 and hence basic and diluted earnings per share are the same.

 

8.  Approval of interim financial statements

The interim financial statements were approved by the Board of Directors on 15 August 2018.

 

 

The information contained within this announcement is deemed by Stratex to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014.

 

 

** ENDS **

 

 

 

Stratex International Plc

Tel: +44 (0)20 830 9650

Tim Livesey / Bob Smeeton / Claire Bay

 

 

 

Camarco (IR/PR Contact)

Tel: +44 (0)20 3757 3763 / 020 3781 3765

Gordon Poole / Nick Hennis / Monique Perks

 

Grant Thornton UK LLP

Tel: +44 (0)20 7383 5100

Samantha Harrison / Ben Roberts / Samuel Rowe

 

Hannam & Partners

Tel: +44 (0)20 7907 8500

Neil Passmore / Andrew Chubb

 

Turner Pope Investments (TPI) Ltd

Tel: +44 (0)2036214120

Ben Turner / James Pope / Andy Thacker

 

 

 

 

 

 

Notes to Editors:

 

The Company is focused on early-stage gold exploration in Cameroon and more advanced exploration in Senegal, where IAMGOLD is spending US$8m at the Dalafin project to earn up to a 70% interest. It also continues to review early-stage exploration opportunities in Africa and Europe. In Turkey, the Company owns 14.87% of a copper-gold project at feasibility stage, which will likely default to a 1.2% (post-Turkish tax) royalty position during 2018, and it is managing its royalty interests in a number of other projects. The Company also has interests in Thani Stratex Resources Ltd, Tembo Gold Corp. and Aforo Resources Limited for their exploration projects in Djibouti and Egypt, Tanzania and Burkina Faso respectively.

 


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.
 
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