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Greatland Gold RNS Release

Final Results

RNS Number : 8934O
Greatland Gold PLC
10 November 2016
 

10 November 2016

 

Greatland Gold plc

("Greatland Gold" or "the Company")

 

Final Results

 

 

Greatland Gold plc (LON:GGP), the London Stock Exchange AIM listed precious and base metals exploration and development business is pleased to announce its financial results for the year ended 30 June 2016

 

Chairman's Statement

 

It has been a year of change at Greatland Gold that has seen a heightened level of activity on both existing and new exploration projects.

 

Last year we observed a turnaround in market sentiment towards the global mining sector after several years of falling commodity prices. Although the recovery in commodity prices is still in its nascent phase, the Board of Greatland Gold believes that we are at or near the bottom of the commodities cycle and, consequently, has spent the last year seeking to reposition the Company for what we hope is a sustained upturn in the sector.

 

In order to capitalise on these opportunities and execute our strategy, changes have occurred at Board level including the appointment of Gervaise Heddle, Executive Director and myself as Non-Executive Chairman. We would also like to note the resignation of John Watkins and, subsequent to the end of the financial year, the resignations of Andrew Bell, former Chairman of Greatland Gold, and Paul Johnson, former Non-executive Director. On behalf of the Board, I would like to thank Andrew, Paul and John for their dedication and service.

 

Greatland Gold successfully raised £637,000 of new equity (net of costs) during the year and a further £389,025 (net of costs) since the close of the financial year. These funds will be used to advance further our current projects and to take advantage of the exciting opportunities that we believe exist in the market at this time, whilst maintaining a disciplined approach towards capital allocation.

 

Over the past 12 months the Group recorded a loss of £662,903, equating to a loss of 0.06 pence per share with net cash inflow for the year of £130,871. The loss for the year is reflective of total administrative expenses of £518,894 plus exploration costs of £145,232. This compares to a loss of £1,077,779 in the previous year that equated to a loss of 0.15 pence per share. The Group's cash deposits stood at £883,478 at the period end.

 

Our strategy for the year ahead involves two key elements. First, we continue to accelerate our plans to exploit our existing pipeline of exploration projects. At the time of writing, Greatland Gold is in the midst of an ambitious exploration campaign at the Ernest Giles gold project in Western Australia, is preparing for further exploration at its Tasmanian gold assets and is awaiting the results of its downhole EM survey from the Bromus project.

 

Second, we are actively seeking new external opportunities to capitalise on the relatively depressed valuations that we believe still exist in the sector. After the close of the financial year, we announced that Greatland Gold reached an agreement to acquire 100% of the Havieron Project. The Havieron Project covers 135 square kilometres in the Paterson Region of Western Australia and is located approximately 40 kilometres east of the prolific Telfer gold mine. Limited historical drilling by Newcrest in the 1990s demonstrated high grade gold and copper mineralisation and we believe that the Havieron Project provides Greatland Gold with a walk up resource definition drill target in a region that is attracting increasing interest from major mining companies.

 

In summary, we remain confident in the long-term fundamentals of the major commodities, particularly gold and precious metals. We intend to capitalise on this view by advancing our existing projects and seeking new projects at sensible valuations. Our thanks go to Callum, Gervaise and the team.

 

Alex Borrelli

Chairman

10 November 2016

 

 

Results and dividends

The Group's results are described in the Group statement of comprehensive income below. The Group has incurred a loss for the year of £662,903 (2015: £1,077,779).

The Directors do not recommend the payment of a dividend.

 

 

Group statement of comprehensive income

for the year ended 30 June 2016

 

 

 

 

Year ended 

30 June 2016

 

£


Year ended 

30 June 2015

 

£

Revenue

-


-

Exploration costs

(145,232)


(259,263)

Impairment charge

Administrative expenses

-

(518,894)


(540,570)

(279,431)

Operating loss

(664,126)


(1,079,264)

Finance revenue

1,223


1,485

Loss before taxation

(662,903)


(1,077,779)

Income tax expense

-


-

Loss for the year

(662,903)


(1,077,779)

 

Other comprehensive income

Exchange differences on translation of foreign operations

 

 

45,444


 

 

(90,937)

Other comprehensive income for the year net of taxation

45,444


(90,937)

Total comprehensive income for the year attributable to equity holders of the parent company

(617,459)


(1,168,716)

 

Loss per share - basic and diluted

 

(0.06) pence


 

(0.15) pence

 

All operations are considered to be continuing.

 

 

Group balance sheet

as at 30 June 2016

 


30 June 2016

30 June 2015


£

£

£

£

ASSETS





Non-current assets

Tangible assets

 

8,058


 

10,381


Intangible assets

332,154


292,200




340,212


302,581

Current assets

Cash and cash equivalents

Trade and other receivables

 

883,478

88,429


 

748,117

48,267


Total current assets


971,907


796,384

TOTAL ASSETS


1,312,119


1,098,965

LIABILITIES





Current liabilities

Trade and other payables

 

(68,131)


 

(175,051)


TOTAL LIABILITIES


(68,131)


(175,051)

NET ASSETS


1,243,988


923,914






EQUITY

Called-up share capital

Share premium reserve

Share based payment reserve

 

1,041,614

5,720,907

277,533


 

992,338

5,050,183

60,000


Retained earnings

(6,062,883)


(5,399,980)


Other reserves

266,817


221,373







TOTAL EQUITY


1,243,988


923,914






 

 

Group statement of changes in equity

for the year ended 30 June 2016

 

 

Share capital

Share premium account

Share based payment reserve

Retained earnings

Other reserves

Total


£

£

£

£

£

£

As at 30 June 2014

579,233

4,664,538

60,000

(4,322,201)

312,310

1,293,880

 

 

 

 

 

 

 

Loss for the year

-

-

-

(1,077,779)

-

(1,077,779)

Currency translation differences

-

-

-

-

(90,937)

(90,937)

Total comprehensive income

-

-

-

(1,077,779)

(90,937)

(1,168,716)

Share option charge

-

-

-

-

-

-

Share capital issued

413,105

436,895

-

-

-

850,000

Cost of share issue

-

(51,250)

-

-

-

(51,250)

Total contributions by and distributions to owners of the Company

413,105

385,645

-

-

-

798,750

As at 30 June 2015

992,338

5,050,183

60,000

(5,399,980)

221,373

923,914

 

Loss for the year

-

-

-

(662,903)

-

(662,903)

Currency translation differences

-

-

-

-

45,444

45,444

Total comprehensive income

-

-

-

(662,903)

45,444

(617,459)

Share option charge

-

-

217,533

-

-

217,533

Share capital issued

49,276

693,724

-

-

-

743,000

Cost of share issue

-

(23,000)

-

-

-

(23,000)

Total contributions by and distributions to owners of the Company

49,276

670,724

217,533

-

-

937,533

As at 30 June 2016

1,041,614

5,720,907

277,533

(6,062,883)

266,817

1,243,988

 

 

 

Other reserves

Merger reserve

Foreign currency translation reserve

Total other reserves


£

£

£

As at 30 June 2014

225,000

87,310

312,310

 

 

 

 

Currency translation differences

-

(90,937)

(90,937)

Total comprehensive income

-

(90,937)

(90,937)

As at 30 June 2015

225,000

(3,627)

221,373

 

Currency translation differences

-

45,444

45,444

Total comprehensive income

-

45,444

45,444

As at 30 June 2016

225,000

41,817

266,817

 

 

 

Group cash flow statement

for the year ended 30 June 2016

 

 

 

Year ended

30 June 2016

 

 

£

 


Year ended

30 June 2015

 

 

£

 

Cash (out)flows from operating activities

Operating loss

(Increase) in trade & other receivables

(Decrease) in trade & other payables

Depreciation

Impairment of exploration properties

Share option charge

Salary sacrifice charge

 

(664,126)

(40,162)

(106,920)

3,323

-

217,533

83,000


 

(1,079,264)

(17,846)

(14,036)

3,531

540,570

-

-

Net (decrease) in cash and cash equivalents from operations

(507,352)


(567,045)

Cash in/(out)flows from investing activities

Interest received

Payments to acquire intangible assets

 

1,223

-


 

1,485

(35,953)

Net cash in/(out)flows used in investing activities

1,223


(34,468)

Cash inflows from financing activities

Proceeds from issue of shares

Transaction costs of issue of shares

 

660,000

(23,000)


 

850,000

(51,250)

Net cash flows from financing activities

637,000


798,750

Net increase in cash and cash equivalents

130,871


197,237

Cash and cash equivalents at the beginning of period

748,117


556,085

Exchange gain/(loss) on cash and cash equivalents

4,490


(5,205)

Cash and cash equivalents at end of period

883,478


748,117

 

 

Notes

 



1

General Information

The financial information set out above does not comprise statutory accounts for the purposes of Section 434 of Companies Act 2006.

The financial information above has been extracted from the Company's statutory financial statements upon which the auditor's opinion is unqualified and does not include any statement under Section 498 of the Companies Act 2006.

 

2

Authorisation of financial statements and statement of compliance with IFRS

The group financial statements of Greatland Gold plc for the year ended 30 June 2016 were authorised for issue by the board on 10 November 2016 and the balance sheets signed on the board's behalf by Mr Callum Baxter and Mr Alex Borrelli.  Greatland Gold plc is a public limited company incorporated and domiciled in England and Wales. The Company's ordinary shares are traded on AIM.

The Group's financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS). The Company's financial statements have been prepared in accordance with IFRS as adopted by the European Union and as applied in accordance with the provisions of the Companies Act 2006. The principal accounting policies adopted by the Group and Company are set out below.

 

3

Loss per share



 


The basic loss per share is derived by dividing the loss for the period attributable to ordinary shareholders by the weighted average number of shares in issue. 

 


 

2016

£

2015

£

 


Loss for the period

(662,903)

(1,077,779)

 


 

Weighted average number of Ordinary shares of £0.001 in issue

Loss per share - basic

 

1,049,314,266

(0.06) pence

 

741,937,920

(0.15) pence

 


 

Weighted average number of Ordinary shares of £0.001 in issue inclusive of outstanding options

 

1,049,314,266

 

741,937,920

 



 


As inclusion of the potential Ordinary shares would result in a decrease in the loss per share they are considered to be anti-dilutive; as such, a diluted earnings per share is not included.

 

The annual report will be made available today on Greatland Gold's website at: http://greatlandgold.com/media/results/. The annual report will also be posted to shareholders in due course.

 

Enquiries:

 

Greatland Gold PLC

Callum Baxter/Gervaise Heddle

Tel +44 (0)20 7747 9980

Email:  [email protected]

www.greatlandgold.com

 

SPARK Advisory Partners Limited (Nominated Adviser)

Mark Brady/Sean Wyndham-Quin/James Keeshan

Tel +44 (0)20 3368 3550

 

SI Capital Limited (Broker)

Nick Emerson / Andy Thacker

Tel  +44 (0)14 8341 3500

 

 

Notes for Editors:

 

Greatland Gold plc is London listed (LON:GGP) natural resource exploration and development company with a current focus on gold and nickel exploration projects.  

 

The Company has five main projects; three situated in Western Australia and two in Tasmania.  All projects are 100% owned by Greatland or Greatland has the right to take 100% ownership.  

 

Greatland is seeking to identify large mineral deposits in areas that have not been subject to extensive exploration previously.  It is widely recognised that the next generation of large deposits will come from such under-explored areas and Greatland is applying advanced exploration techniques to investigate a number of carefully selected targets within its focused licence portfolio.

 

The Company is also actively investigating a range of new opportunities in precious and strategic metals and will update the market on new opportunities as and when appropriate.

 

 

Note: This announcement contains inside information which is disclosed in accordance with the Market Abuse Regulation.

 

 

 

 


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