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AfriTin Mining Ltd RNS Release

Interim Results


RNS Number : 9099X
AfriTin Mining Ltd
30 November 2017
 

30 November 2017

AfriTin Mining Limited

("AfriTin" or the "Company" and with its subsidiaries the "Group")

Unaudited Interim Results

for the Six Months Ended 31 August 2017

AfriTin Mining plc (AIM:ATM) announces its unaudited interim results for its underlying subsidiaries for the six months ended 31 August 2017.

Key Highlights

•      Since the end of the period under review, AfriTin Mining Limited was incorporated and acquired a portfolio of tin assets following a demerger from Bushveld Minerals (AIM: BMN).

•      At the same time, AfriTin was admitted to trading on AIM, a market of the London Stock Exchange having successfully raised £4.5m (3.5m in equity and a further £1m in convertible loan notes)

•      The Company's vision is to create a portfolio of world-class, conflict-free, tin producing assets as the first pure tin company listed in London

•     Afritin's flagship asset is the Uis tin mine in Namibia, formerly one of the world's largest hard-rock opencast tin mines

•      The Company is now positioned to expand its pilot plant production at the Uis mine into a commercial operation before completion of a definitive feasibility study for full scale production

Commenting on the first set of interims for the company, Chief Executive Officer, Anthony Viljoen stated "We are pleased to have completed the Admission of AfriTin over the course of this year; raising a good sum of money in an increasingly optimistic, but still difficult market. The Company has built a strong management team with the capabilities of bringing the Uis tin mine into production and we will be driving the company towards cash flow in as short a time frame as possible".

Summary

As required by the AIM Rules for Companies these interim accounts update the financial information provided for the individual entities that form the  Group set out in the Company's Admission Document dated 8 November 2017. As AfriTin was incorporated on 1 September 2017 no financial information on this company is provided but information on the underlying subsidiaries - the Greenhills Group; the Dawnmin Group and Pamish Group are set out below. Further details on the Group can be found in the Company's Admission Document, which is on the Company's website www.afritinmining.com.

Chief Executive's Statement

Introduction

I am pleased to report on the first set of interims for the Company since its admission to AIM earlier this month. Following AfriTin's Admission, the Company's technical team have been prioritising final designs and procurement of key components for our upgraded plant, and the pit design aspects of the project. I am looking forward to providing shareholders with regular updates as we look to progress our activities at Uis, our flagship project in Namibia

 

Financing Activities

Afritin was incorporated on 1 September 2017 and, having acquired the tin assets of Bushveld Minerals Limited and Naminco Limited, was admitted to trading on AIM on 9 November 2017. We successfully raised £4.5m (£3.5million in Equity and £1 million by way of a convertible loan note that converted into ordinary shares upon admission) on Admission and will use the funds to advance our mineral resource management and mine development strategy with a particular focus on upgrading the pilot plant and advancing to production as quickly as possible.  We look forward to providing further updates to shareholders in due course.

Strategy

The strategy of the Group, following Admission and as set out in the Company's Admission Document, is to become a primary producer of tin metal and concentrate and, through a consolidation of further assets and potential smelting facilities, becoming a global tin explorer and producer with a relative bias towards Africa. The Placing and Admission are an important part of executing this strategy. The critical component of this strategy lies in the upgrading of the current pilot plant operation into a producer of 65 tonnes per month of tin concentrate. The Directors believe the cash flows and test work conducted over the course of this development will allow the Company to develop a significant knowledge base to advance towards a bankable feasibility study and an expanded plant production of up to 5000 tons per annum of tin concentrate, grading at 65%.

The Tin Market

Tin is a highly versatile metal with its primary use being as a substitute for lead as a solder in the electronics market. Overall, global tin supply has been decreasing as older mines run short of mineable reserves and a long lead time for the development of new mines in difficult political geographies. The International Tin research institute have predicted a sustained deficit of Tin supply into the market. Afritin intends on exploiting this deficit by bringing one of the largest open cast deposits of its kind into full-scale production.

Prospects and Outlook

AfriTin's growth strategy is to focus on upgrading the pilot plant at Uis and advancing to production as quickly as possible, in the longer term the Company will also be seeking additional acquisition opportunities as it seeks to deliver on its stated strategy objective of becoming the African Tin Champion.

2017 has been a busy time in which we have completed acquisitions, a fundraising and the Admission to AIM and I would like to thank AfriTin's Board, employees, shareholders and stakeholders for their ongoing commitment and support. I look forward to a busy 2018.  

 

Enquiries:

AfriTin Limited


Anthony Viljoen (CEO)

+27 (11) 268 6555



Nominated Adviser and Broker


WH Ireland Limited

Katy Mitchell

Adrian Hadden

James Sinclair-Ford

 

Joint Broker 

Beaufort Securities Limited

Jon Belliss

 

 

+44 (0) 207 220 1666

 

 

 

 

+44 (0) 207 382 8300

 

Financial Public Relations


Tavistock


Jos Simson / Barney Hayward

+44 (0) 207 920 3150

 



 

PART A: GREENHILLS RESOURCES LIMITED

GREENHILLS RESOURCES LIMITED UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the six months ending 31 August 2017

 



Six months to

31 August 2017 (unaudited)

£

Six months to

31 August 2016 (unaudited)

£


Year to 28 February 2017 (unaudited)

£

 










Continuing operations






 

Revenue


5 084

-


37,976

Administrative expenses


(96,248)

(95,850)


(261,990)







Operating loss


(91 164)

(95,850)


(224,014)







Other income


43

4,090


176







Finance income


415

413


912







Finance costs


(530)

(364)


(2,344)







Loss before tax


(91,236)

(91,711)


(225,270)







Income tax expense


-

-


-







Loss after tax


(91,236)

(91,711)


(225,270)







Other Comprehensive profit/(loss), net of taxation:






Exchange difference on translating foreign operations attributable to Owners of parent


204,496

(262,214)


255,869



___________

___________


___________

Total other comprehensive profit/(loss) attributable to Owners of parent


204,496

(262,214)


255,869



___________

___________


___________

Total comprehensive profit/(loss) for the year


113,260

(353,925)


30,599



___________

___________


__________

Total comprehensive profit/(loss) attributable to:






Owners of the parent


113,260

(353,925)


30,599

Non-controlling interest


-

-


-



____________

___________


__________



113,260

(353 925)


30,599



____________

__________


__________



 

GREENHILLS RESOURCES LIMITED UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

For the six months ending 31 August 2017

 


Note

As at

31 August 2017 (unaudited)

£


As at

31 August 2016 (unaudited)

£


As at 28 February 2017 (unaudited)

£

Assets







Non-current assets







Intangible assets: exploration and evaluation

2

2,035,273


1,694,843


2,155,139

Property, plant and equipment


-


6,985


3,727

Total non-current assets


2,035,273


1,701,828


2,158,866








Current assets







Trade and other receivables

3

679,253


3,939,029


5,501,022

Cash and cash equivalents




16,087


24,068



 -





Total current assets


679,253


3,955,116


5,525,090








Total assets


2,714,526


5,656,944


7,683,956








Equity and liabilities














Current liabilities







Related party loans

4

3,160


5,142,796


6,716,948

Trade and other payables


5,070


52,875


121,211

Total current assets


8 230


5,195,671


6,838,159








Net assets


2,706,296


461,273


845,797








Equity







Share capital

5

100


100


100

Share premium

5

4,063,275


2,316,036


2,316,036

 

Accumulated deficit


(1,173,821)


(1,003,297)


(1,082,585)

 

Foreign exchange translation reserve


(214,937)


(883,245)


(419,433)

 

Equity attributable to the owners of the parent


2,706,296


(429,594)


814,118








Non-controlling interests


31,679


31,679


31,679








Total equity


2,706,296


461,273


845,797

 

 


GREENHILLS RESOURCES LIMITED UNAUDITED CONSOLIDATED STATEMENT OF CASH FLOWS

For the six months ending 31 August 2017

 



Six Months to
31 August 2017 (unaudited)
£

Six Months to
31 August 2016 (unaudited)
£

Year to
28 February 2017 (unaudited)
£

Cash flows from operating activities










Profit/(loss) before taxation


(91,236)

(91,711)

(225,270)

Adjustments for:





Depreciation property, plant and equipment


-

5,493

9,871

Finance income


(415)

(413)

(912)

Finance costs


530

-

2,344

Changes in working capital:





Decrease/(Increase) in trade and other receivables


4,751,499

(466,240)

(1,113,077)

Increase/(Decrease) in trade and other payables


(116,141)

(76,888)

(8,552)






Net cash (used in)/provided by operations


4,544,237

(629,759)

(1,335,596)






Cash flows from investing activities





Finance income


415

413

912

Purchase of exploration and evaluation assets


3,727

(2,402)

(3,522)






Net cash used in investing activities


4,142

(1,989)

(2,610)






Finance costs


(530)

-

(2,344)

Conversion of debt to equity


1,747,239

-

-

(Repayment of)/Proceeds from borrowings


(6,305,882)

630,947

1,326,563

Net cash generated from/(used in) financing activities


(4,559,173)

630,947

1,324,219






Net decrease in cash and cash equivalents


(10,794)

(801)

(13,987)






Cash and cash equivalents at the beginning of the year


24,068

29,509

29,509






Effect of foreign exchange rates


(13,274)

(12,621)

8,546






Cash and cash equivalents at end of the year


-

16,087

24,068

 

 

GREENHILLS RESOURCES LIMITED: UNAUDITED NOTES

For the six months ending 31 August 2017

 

1.      Accounting policies

The interim financial information comprises the financial statements of Greenhills Resources Limited and its subsidiaries, Mokopane Tin Company (Pty) Limited and Renetype (Pty) (Limited) (together the "Greenhills Group") for the six month ended 31 August 2017 ended 28 February 2017 as if they formed a single entity throughout the period.

 

These financial statements are presented in Pound Sterling (£) because that is the currency the Group has raised funding on the AIM market in the United Kingdom.

 

Basis of preparation

The results presented in this report are unaudited and they have been prepared in accordance with the recognition and measurement principles of International Financial Reporting Standards ('IFRS') as adopted by the EU that are expected to be applicable to the financial statements for the year ended 28 February 2018 and on the basis of the accounting policies to be used in those financial statements.

 

The interim financial information does not include all of the information required for full annual financial statements and accordingly, whilst the interim financial information has been prepared in accordance with the recognition and measurement principles of IFRS, it cannot be construed as being in full compliance with IFRS. The financial information contained in this announcement does not constitute statutory accounts as defined by the Companies (Guernsey) Law 2008.

 

Corporate information and principal activities

The Greenhill Group comprises:

 

Company

Equity holding and voting rights

Country of incorporation

Nature of activities

Greenhills Resources Ltd

100%

Guernsey

Holding company

Mokopane Tin Company (Pty) Ltd

100%

South Africa

Holding company

Renetype (Pty) Ltd

74%

South Africa

Tin exploration









 

The principal activities of the Greenhills Group are mining development, investment, administrative and all activities related to the mining industry.



 

GREENHILLS RESOURCES LIMITED: UNAUDITED NOTES

For the six months ending 31 August 2017

 

Going concern

In preparing the Interim financial information, the Directors have considered the current financial position of the Greenhills Group and the likely future cash flows for the period to 12 months from the date of this report. As with all exploration groups at this stage of the resource development cycle and with no cash flow from production, funding is derived principally through equity financing. In adopting the going concern basis the Directors have considered the receipt of the net proceeds and other financing from the placing of shares by the Company upon admission to AIM.

 

Intangible exploration and evaluation assets

 

All costs associated with mineral exploration and evaluation including the costs of acquiring prospecting licences; mineral production licences and annual licences fees; rights to explore; topographical, geological, geochemical and geophysical studies; exploratory drilling; trenching, sampling and activities to evaluate the technical feasibility and commercial viability of extracting a mineral resource; are capitalised as intangible exploration and evaluation assets and subsequently measured at cost.

 

If an exploration project is successful, the related expenditures will be transferred at cost to property, plant and equipment and amortised over the estimated life of the commercial ore reserves on a unit of production basis (with this charge being taken through profit or loss). Where a project does not lead to the discovery of commercially viable quantities of mineral resources and is relinquished, abandoned, or is considered to be of no further commercial value to the Greenhills Group, the related costs are recognised in profit or loss.

 

The recoverability of deferred exploration costs is dependent upon the discovery of economically viable ore reserves, the ability of the Greenhills Group to obtain necessary financing to complete the development of ore reserves and future profitable production or proceeds from the extraction or disposal thereof.

 

Impairment of exploration and evaluation assets

 

Whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable, the asset is reviewed for impairment. Assets are also reviewed for impairment at each balance sheet date in accordance with IFRS 6. An asset's carrying value is written down to its estimated recoverable amount (being the higher of the fair value less costs to sell and value in use) if that is less than the asset's carrying value. Impairment losses are recognised in profit or loss.

 

An impairment review is undertaken when indicators of impairment arise but typically when one of the following circumstances applies:

 

•      unexpected geological occurrences that render the resources uneconomic; or

•      title to the asset is compromised; or

•      variations in mineral prices that render the project uneconomic; or

•      variations in the foreign currency rates; or

•      the Greenhills Group determine that they no longer wish to continue to evaluate or develop the field.

GREENHILLS RESOURCES LIMITED: UNAUDITED NOTES

For the six months ending 31 August 2017

 

Use of estimates and judgements

In the application of the Greenhills Group accounting policies, the Directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

Estimates and judgements are continually evaluated. Revisions to accounting estimates are recognised in the year in which the estimates are revised if the revision affects only that year, or in the year of revision and in future years if the revision affects both current and future years.

 

Management has chosen to organise the entity around differences in products and services. As the financial information relates to one product and service (Tin), the Interim financial information has been prepared on that basis.

Management's critical estimates and judgements in preparing the interim financial information relate to the going concern assumption (see above) and the valuation of intangible exploration assets of £2,035,273 (2016: £1,694,843).

 

Determining whether an exploration and evaluation asset is impaired requires an assessment of whether there are any indicators of impairment, including by reference to specific impairment indicators prescribed in IFRS 6 Exploration for and Evaluation of Mineral Resources.  If there is any indication of potential impairment, an impairment test is required based on value in use of the asset. The valuation of intangible exploration assets is dependent upon the discovery of economically recoverable deposits which, in turn, is dependent on future iron ore and tin prices, future capital expenditures and environmental and regulatory restrictions. The Directors have concluded that there are no indications of impairment in respect of the carrying value of intangible assets at 31 August 2017 based on planned future development of the projects and current and forecast commodity prices.

2.     Intangible exploration and evaluation assets

 




Total




£

Cost




As at 28 February 2015



1,803,033

Additions



163,385

Exchange differences



(310,710)





As at 29 February 2016 (unaudited)



1,655,708

Additions



-

Exchange differences



39,135





As at 31 August 2016 (unaudited)



1,694,843

Additions



-

Exchange differences



460,296





As at 28 February 2017 (unaudited)



2,155,139

Additions



-

Exchange differences



(119,866)





As at 31 August 2017 (unaudited)



2,035,273





The Greenhills Group has a 74% interest in Renetype (Pty) Limited which holds an interest in prospecting right 2205 ("Renetype 2205").

 

REENHILLS RESOURCES LIMITED: UNAUDITED NOTES

For the six months ending 31 August 2017

 

3.     Trade and other receivables


Six months to

31 August 2017 (unaudited)

£


Six months to

31 August 2016 (unaudited)

£


Year to 28 February 2017 (unaudited)

£







Advances and deposits

-


2,938


22,171

Amounts due from related parties

679,253


3,891,730


5,164,420

Other receivables

-


44,361


314,431


679,253


3,939,029


5,501,022

 

Included in the amounts due from related parties above are the following entities:


Relationship







Frontier Platinum (Pty) Ltd

Subsidiary of Bushveld Minerals Limited


-


236,830


280,406

Pamish Investment 39 (Pty) Ltd

 

Subsidiary of Bushveld

Minerals Limited


-


3,257,922


4,332,605

Amaraka Investment 85 (Pty) Ltd

 

Subsidiary of Bushveld Minerals Limited


-


303,359


356,342

Bushveld Energy (Pty) Ltd

 

Company with related directors/        shareholders (Fortune Mojapelo and Anthony Viljoen)


-


93,619


146,409

VM Investment (Pty) Ltd

 

Company with related directors/shareholders (Fortune Mojapelo and Anthony Viljoen)


-


-


48,658

Lerama



62,913


-


-









Dawnmin Africa Investments (Pty) Ltd

 

10% Investment of a subsidiary (Renetype (Pty) Ltd)


616,340


-


-




679,253


3,891,730


5,164,420

 

The related parties referred to above as "Investment in subsidiary", are investments by fellow subsidiaries that have not been consolidated into the Greenhills Group as they do not meet the relevant criteria in terms of IFRS 3.

 

The total trade and other receivables denominated in South African Rand amount to £679 253 (2016: £3,939,029).

 

The Directors consider that the carrying value of the trade and other receivables approximates to fair value.

 

There was no income statement impact from transactions with related parties in the previous table.

 

GREENHILLS RESOURCES LIMITED: UNAUDITED NOTES

For the six months ending 31 August 2017

 

4.     Related party loans

 


Six months to

31 August 2017 (unaudited)

£


Six months to

31 August 2016 (unaudited)

£


Year to 28 February 2017 (unaudited)

£







VMI Investment Proprietary Limited

3,160


4,475


-

Bushveld Minerals Limited

-


4,007,781


5,457,937

Lemur Holdings Limited

-


1,130,540


1,259,011








3,160


5,142,796


6,716,948

 

The loans which are denominated in South African Rand, are unsecured, interest free and have no fixed repayment terms.

 

There was no income statement impact from transactions with related parties in the previous table.

5.     Share capital and share premium

 



Six months to 31 August 2017

(unaudited)

£


Six months to 31 August 2016

(unaudited)

£


28 February 2017

(unaudited)

£

Authorised






100 Ordinary shares of 1 GBP each


100


100


100

 










Six months to 31 August 2017

(unaudited)

£


Six months to 31 August 2016

(unaudited)

£


28 February 2017

(unaudited)

£

Issued







100 Ordinary shares of 1 GBP


100


100


100

Share premium


4,063,275


2,316,036


2,316,036



4,063,375


2,316,136


2,316,136

 

6.     Subsequent events

 

On [9] November 2017, the Greenhills Group was acquired by the Afritin group which was admitted to AIM on the same date. For the year ended February 2018, the Greenhills group will therefore be reported as part of the Afritin group's consolidated

 

PART B: DAWNMIN GROUP Dawnmin group unaudited Consolidated STATEMENT OF COMPREHENSIVE Income

For the six months ended 31 August 2017

 

 


Notes

Six months ended 31 August 2017

Six months ended 31 August 2016

Year ended 28 February 2017



(Unaudited)

(Unaudited)

(Audited)



£

£

£

Other operating expenses


(63 933)

(5,244)

(12,327)

Loss before tax


(63,933)

(5,244)

(12,327)

Taxation

2

-

-

-

Loss after tax


(63,933)

(5,244)

(12,327)

Other comprehensive income


-

-

-

Total comprehensive loss for the year


(63,933)

(5,244)

(12,327)






Attributable to:





Owners of the parent


(54,343)

(4.457)

(10,478)

Non-controlling interest


(9 590)

(787)

(1,849)



(63,933)

(5,244)

(12,327)

 

 

Other Comprehensive loss, net of taxation:





Exchange difference on translating foreign operations attributable to Owners of parent


-

(11,086)

(25,939)



___________

___________

___________

Total other comprehensive loss attributable to Owners of parent


-

(11,086)

(25,939)



___________

___________

___________

Exchange difference on translating foreign operations attributable to Non-controlling interest


-

(1,956)

(4,577)



___________

___________

___________






Total comprehensive loss for the year


(63,933)

(18,286)

(42 843)



___________

___________

__________

Total comprehensive loss attributable to:





Owners of the parent


(54,343)

(15,543)

(36,417)

Non-controlling interest


(9,590)

(2,743)

(6,426)



____________

___________

__________



(63,933)

(18,286)

(42,843)

 

All results relate to continuing activities.

 

dawnmin GROUP UNAUDITED Consolidated Statement of Financial Position

As at 31 August 2017

 


Note


As at 31 August 2017


As at 31 August 2016


As at 28 February 2017

(Unaudited)

(Unaudited)

(Audited)

£

£

£

Assets








Non-current assets








Intangible assets: exploration and evaluation

3


493,072


419,500


493 072









Total non-current assets



493,072


419,500


493,072









Current assets








Trade and other receivables

4


12


12


12









Total current assets



12


12


12









Total assets



493,084


419,512


493,084









Equity and liabilities
























Non-current liabilities








Loans from related parties

5


686,436


524,375


622,503

Total non-current assets



686,436


524,375


622,503









Net (liabilities)



(193,352)


(104,863)


(129,419)









Equity








Share capital

6


12


12


12

Accumulated deficit



(173,952)


(78,059)


(110,019)

Foreign exchange translation reserve



-


(11,086)


-

Equity attributable to the owners of the parent



(173,940)


(89,133)


(110,007)









Non-controlling interests



(19,412)


(15,730)


(19,412)









Total equity



(193,352)


(104,863)


(129,419)

 

 

DAWNMIN gROUP Consolidated Statement of Cash Flows

For the six months ended 31 August 2017



Year ended 31 August 2017

£


Year ended 31 August 2016

£


Year ended 28 February 2017

£



(Unaudited)


(Unaudited)


(Audited)


Note






Cash flows from operating activities














Loss before taxation


(63,933)


(5,244)


(12,327)

Adjustments for:







Net cash used in operating activities


(63,933)


(5,244)


(12,327)








Cash flows from investing activities







Net cash used in investing activities


-


-


-








Cash flows from financing activities














Net proceeds from loans


63,933


5,244


12,327

Net cash generated from/(used in) financing activities


63,933


5,244


12,327








Net decrease in cash and cash equivalents


-


-


-








Cash and cash equivalents at the beginning of the year


-


-


-








Effect of foreign exchange rates


-


-


-








Cash and cash equivalents at end of the year


-


-


-

 

 

DAWNMIN GROUP: UNAUDITED NOTES

1.     Accounting Policies

Dawnmin Africa Investments (Pty) Ltd ("Dawnmin") was incorporated on 5th February 2014 and is domiciled in Namibia. The address of its registered office and principal place of business is Shop 48, Second Floor, Old Power Station Complex, Armstrong Street, Windhoek, Namibia. The principal activities of Dawnmin and its subsidiaries (the "Dawmnin Group") are set out in corporate information and principal activities below.

 

These financial statements are presented in Pound Sterling (£) because it is the currency the Group has raised funding on the AIM market in the United Kingdom. 

 

Basis of preparation

 

The results presented in this report are unaudited and they have been prepared in accordance with the recognition and measurement principles of International Financial Reporting Standards ('IFRS') as adopted by the EU that are expected to be applicable to the financial statements for the year ended 28 February 2018 and on the basis of the accounting policies to be used in those financial statements.

 

The interim financial information does not include all of the information required for full annual financial statements and accordingly, whilst the interim financial information has been prepared in accordance with the recognition and measurement principles of IFRS, it cannot be construed as being in full compliance with IFRS. The financial information contained in this announcement does not constitute statutory accounts as defined by the Companies (Guernsey) Law 2008.

 

Corporate information and principal activities

 

As at 28 February 2017, 31 August 2016 and 31 August 2017, the subsidiaries of Dawnmin were as follows:

 

Company

Equity holding and voting rights

Country of incorporation

Nature of activities





Guineafowl Investments Twenty Seven (Pty) Ltd

85%

Namibia

Holding of tin license

 

 

Going concern

The directors have considered the current financial position of the Dawnmin Group and the likely future cash flows for the period of 12 months following the approval of this interim financial information in preparing the interim financial information. As with all exploration groups at this stage of the resource development cycle and with no cash-flow from production, funding is derived principally through equity financing. In adopting the going concern basis the Directors have considered the receipt of the net proceeds from the placing of shares by the Company upon admission to AIM.

Intangible exploration and evaluation assets

 

All costs associated with mineral exploration and evaluation including the costs of acquiring prospecting licences; mineral production licences and annual licences fees; rights to explore; topographical, geological, geochemical and geophysical studies; exploratory drilling; trenching, sampling and activities to evaluate the technical feasibility and commercial viability of extracting a mineral resource; are capitalised as intangible exploration and evaluation assets and subsequently measured at cost.

 

If an exploration project is successful, the related expenditures will be transferred at cost to property, plant and equipment and amortised over the estimated life of the commercial ore reserves on a unit of production basis (with this charge being taken through profit or loss). Where a project does not lead to the discovery of commercially viable quantities of mineral resources and is relinquished, abandoned, or is considered to be of no further commercial value to the Dawnmin Group, the related costs are recognised in profit or loss.

 

The recoverability of deferred exploration costs is dependent upon the discovery of economically viable ore reserves, the ability of the Dawnmin Group to obtain necessary financing to complete the development of ore reserves and future profitable production or proceeds from the extraction or disposal thereof.

Impairment of exploration and evaluation assets

 

Whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable, the asset is reviewed for impairment. Assets are also reviewed for impairment at each balance sheet date in accordance with IFRS 6. An asset's carrying value is written down to its estimated recoverable amount (being the higher of the fair value less costs to sell and value in use) if that is less than the asset's carrying value. Impairment losses are recognised in profit or loss.

 

An impairment review is undertaken when indicators of impairment arise but typically when one of the following circumstances applies:

 

•      unexpected geological occurrences that render the resources uneconomic; or

•      title to the asset is compromised; or

•      variations in mineral prices that render the project uneconomic; or

•      variations in the foreign currency rates; or

•      the Group determines that it no longer wishes to continue to evaluate or develop the field.

 

Use of estimates and judgements

In the application of the Dawnmin Group's accounting policies, the Directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

Estimates and judgements are continually evaluated. Revisions to accounting estimates are recognised in the year in which the estimates are revised if the revision affects only that year, or in the year of revision and in future years if the revision affects both current and future years.

Management's critical estimates and judgements in preparing the interim financial information relate to the going concern assumption (see above) and the valuation of intangible exploration assets of £0.493m.

Determining whether an exploration and evaluation asset is impaired requires an assessment of whether there are any indicators of impairment, including by reference to specific impairment indicators prescribed in IFRS 6 Exploration for and Evaluation of Mineral Resources.  If there is any indication of potential impairment, an impairment test is required based on value in use of the asset. The valuation of intangible exploration assets is dependent upon the discovery of economically recoverable deposits which, in turn, is dependent on future iron ore and tin prices, future capital expenditures and environmental and regulatory restrictions. The directors have concluded that there are no indications of impairment in respect of the carrying value of intangible assets at 31 August 2017 based on planned future development of the projects and current and forecast commodity prices. An annual fee of £0.012m ($N200 000) is payable to the SMU (Small Miners of Uis). 

2.         Taxation

 

Factors affecting tax for the year:


6 months ended 31 August 2017

(Unaudited)

£


6 months ended 31 August 2016

(Unaudited)

£


Year ended 28 February 2017

(Audited)

£

 Loss before taxation


(63,933)


(5,244)


(12,327)








Loss before taxation multiplied by the Namibian corporation tax charge rate of 33%


(21,098)


(1,731)


(4,068)

Effects of:







Unrelieved tax losses


21,098


1,731


4,068

 

Tax for the year


 

-


 

-


 

-

 

No provision for taxation or deferred tax has been provided as the company has a trading loss for the reporting periods under review.

3.         Intangible - Mineral rights

 




Tin

£


Total

£

As at 29 February 2016 (Unaudited)



364,596


364,596

Exchange differences



54,916


As at 31 August 2016 (Unaudited)



419,500


419,500

Exchange differences



73,572


73,572

As at 28 February 2017 (Audited)



493,072


493,072

Exchange differences



-


-

As at 31 August 2017 (Unaudited)



493,072


493,072

 

Mineral Rights

 

The Dawnmin Group is the owner of the following active mining licenses:

Mining license 129  in the Uis district expiring on 7 July 2023.

Mining license 133  in the Uis district expiring on 21 August 2028.

Mining license 134  in the Uis district expiring on 21 August 2028

 

 

4.         Trade and other receivables


6 months ended 31 August 2017

£


6 months ended 31 August 2016

£


Year ended 28 February 2017

£


(Unaudited)


(Unaudited)


(Audited)







Unpaid share capital

12


12


12


12


12


12

The Directors consider that the carrying amount of trade and other receivables approximates to their fair value due to their short-term nature. As at the year end, no receivables are past their due date, hence no allowance for doubtful receivables is provided.

 

5.         Loans from related companies


6 months ended 31 August 2017

£


6 months ended 31 August 2016

£


Year ended 28 February 2017

£


(Unaudited)


(Unaudited)


(Audited)







Naminco Limited

6,163


                -


6,163

Sweltering Desert Investment (Pty) Limited

            -


            524,375


616,340

Greenhills Resources Limited

680,273


-


-








            686,436


            524,375


622,503

 

6.     Subsequent events

 

On [9] November 2017, the Dawnmin Group was acquired by the Afritin group which was admitted to AIM on the same date. For the year ended February 2018, the Dawnmin group will therefore be reported as part of the Afritin group's consolidated

 

 

PART C: PAMISH INVESTMENTS
pamish investments No. 71 (pty) ltd UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the six months ending 31 August 2017

 


Note

Six months to

31 August 2017 (unaudited)

£


Six months to

31 August 2016 (unaudited)

£


Year to 28 February 2017 (unaudited)

£

 











Continuing operations






 

Revenue


22,834

12,031


28,367

Administrative expenses


-

(9,754)


(43,354)







Operating profit / (loss)


22,834

2,277


(14,987)







Other income












Finance income


3

67


78







Finance costs


(63)

-


(290)







Profit / (loss) before tax


22,774

2,344


(15,199)







Income tax expense


-

-


-







Profit / (loss) after tax


22,774

2,344


(15,199)







Attributable to:






Owners of the Parent


22,774

2,344


(15,199)

Non - controlling interest


-

-


-



_____________

___________


_____________









22,774

2,344


(15,199)



===========

=========


===========

Other Comprehensive profit/(loss), net of taxation:






Exchange difference on translating foreign operations attributable to Owners of parent


(71,757)

(199,851)


188,728



___________

___________


___________

Total other comprehensive (loss)/profit attributable to Owners of parent


(71,757)

(199,851)


188,728



___________

___________


___________

Total comprehensive (loss)/profit for the year


(48,983)

(197,507)


173,529



___________

___________


__________

Total comprehensive (loss)/profit attributable to:






Owners of the parent


(48,983)

(197,507)


173,529

Non-controlling interest


-

-


-



____________

___________


__________



(48,983)

(197,507)


173,529



____________

__________


__________



 

pamish investments No.71 (Pty) Ltd CONSOLIDATED STATEMENT OF FINANCIAL POSITION

For the six months ending 31 August 2017

 


Note

Six months to

31 August 2017 (unaudited)

£


Six months to

31 August 2016 (unaudited)

£


Year to 28 February 2017 (unaudited)

£

Assets







Non-current assets







Intangible assets: exploration and evaluation


135,345


119,275


141,359








Total non-current assets


135,345


119,275


141,359








Current assets







Trade and other receivables


88,808


78,264


41,869

Cash and cash equivalents


7,480


6,592


127








Total current assets


96,288


84,856


41,996








Total assets


231,633


204,131


183,355








Equity and liabilities














Current liabilities














Trade and other payables


21,030


18,533


21,735

Total current liabilities


21,030


18,533


21,735








Net assets


210,603


185,598


161,620








Equity







Share capital


100


100


100

Share premium







 

Accumulated deficit


(7,033)


(29,039)


(59,651)

 

Foreign exchange translation reserve


217,536


214,537


221,171

Total equity


210,603


185,598


161,620

 

 

pamish investments No.71(pty) Ltd Aggregated STATEMENT OF CASH FLOWS

For the six months ending 31 August 2017

 


Note

Six months to

31 August 2017 (unaudited)

£


Six months to

31 August
2016 (unaudited)

£


Year to 28 February 2017 (unaudited)

£

 

Cash flows from operating activities












Profit/(loss) before taxation


22,774

2,344


(15,199)

Adjustments for:






Depreciation property, plant and equipment






Finance income


(3)

(67)


(78)

Finance costs


-

-



Changes in working capital:






(Increase) in trade and other receivables


(14,716)

(26,616)


(20,534)

(Decrease)\Increase in trade and other payables


(705)

12,550


15,752

Net cash used in operations


7,350

11,789


(20,059)







Cash flows from investing activities






Finance income


3

67


78













Net cash used in investing activities


3

67


78







Proceeds from borrowings


-

-


-

Net cash generated from/(used in) financing activities


-

-


-







Net decrease in cash and cash equivalents


7,353

(11,722)


(19,981)







Cash and cash equivalents at the beginning of the year


127

20,108


20,108







Effect of foreign exchange rates


-

 (1,794)


-







Cash and cash equivalents at end of the year


7,480

6,592


127

 

PAMISH INVESTMENTS: UNAUDITED NOTES

For the six months ending 31 August 2017

 

1.     Accounting policies

 

Basis of preparation

The Pamish Group, comprising Pamish Investments 71 Pty Ltd and Zaaiplaats Pty Ltd represents the South African tin assets of Bushveld Minerals and was under the common control of the same beneficial owners and effectively operated as a group under common management throughout the reporting periods. It did not form a legal group or comprise a group as defined by International Financial Reporting Standards. The Financial Information has therefore been presented on an aggregated basis. Under this method the assets, liabilities and results of the individual companies have been aggregated (with intercompany transactions and balances eliminated) to present the interim financial information as if the Pamish Group had been under the control of a single common parent company throughout the financial periods presented.

 

These financial statements are presented in Pound Sterling (£) because that is the currency the Group has raised funding on the AIM market in the United Kingdom. 

 

The results presented in this report are unaudited and they have been prepared in accordance with the recognition and measurement principles of International Financial Reporting Standards ('IFRS') as adopted by the EU that are expected to be applicable to the financial statements for the year ended 28 February 2017 and on the basis of the accounting policies to be used in those financial statements.

 

The interim financial information does not include all of the information required for full annual financial statements and accordingly, whilst the interim financial information has been prepared in accordance with the recognition and measurement principles of IFRS, it cannot be construed as being in full compliance with IFRS. The financial information contained in this announcement does not constitute statutory accounts as defined by the Companies (Guernsey) Law 2008.

 

Corporate information and principal activities

The Pamish Group comprises Pamish Investments No.71 (Pty) Ltd and the following subsidiary

 

Company

Equity holding and voting rights

Country of incorporation

Nature of activities





Zaaiplaats Mining (Pty) Ltd

74%

South Africa

Property owning





Going concern

In preparing the Interim financial information, the Directors have considered the current financial position of the Greenhills Group and the likely future cash flows for the period to 12 months from the date of this report. As with all exploration groups at this stage of the resource development cycle and with no cash flow from production, funding is derived principally through equity financing. In adopting the going concern basis the Directors have considered the receipt of the net proceeds and other financing from the placing of shares by the Company upon admission to AIM.

 

Intangible exploration and evaluation assets

 

All costs associated with mineral exploration and evaluation including the costs of acquiring prospecting licences; mineral production licences and annual licences fees; rights to explore; topographical, geological, geochemical and geophysical studies; exploratory drilling; trenching, sampling and activities to evaluate the technical feasibility and commercial viability of extracting a mineral resource; are capitalised as intangible exploration and evaluation assets and subsequently measured at cost.

 

If an exploration project is successful, the related expenditures will be transferred at cost to property, plant and equipment and amortised over the estimated life of the commercial ore reserves on a unit of production basis (with this charge being taken through profit or loss). Where a project does not lead to the discovery of commercially viable quantities of mineral resources and is relinquished, abandoned, or is considered to be of no further commercial value to the Greenhills Group, the related costs are recognised in profit or loss.

 

The recoverability of deferred exploration costs is dependent upon the discovery of economically viable ore reserves, the ability of the Greenhills Group to obtain necessary financing to complete the development of ore reserves and future profitable production or proceeds from the extraction or disposal thereof.

 

Impairment of exploration and evaluation assets

 

Whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable, the asset is reviewed for impairment. Assets are also reviewed for impairment at each balance sheet date in accordance with IFRS 6. An asset's carrying value is written down to its estimated recoverable amount (being the higher of the fair value less costs to sell and value in use) if that is less than the asset's carrying value. Impairment losses are recognised in profit or loss.

 

An impairment review is undertaken when indicators of impairment arise but typically when one of the following circumstances applies:

 

•      unexpected geological occurrences that render the resources uneconomic; or

•      title to the asset is compromised; or

•      variations in mineral prices that render the project uneconomic; or

•      variations in the foreign currency rates; or

•      The Greenhills Group determine that they no longer wish to continue to evaluate or develop the field.

 

 

2.         Subsequent events

 

On 8 November 2017, the Pamish Group was acquired by the Afritin group which was admitted to AIM on the same date. For the year ended February 2018, the Pamish group will therefore be reported as part of the Afritin group's consolidated

 


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