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Amedeo Resources PLC RNS Release

Half-year Report


RNS Number : 7602R
Amedeo Resources PLC
26 September 2017
 

 

 

Amedeo Resources PLC

("Amedeo" or the "Company")

 

Interim Results for the six months ended 30 June 2017

 

Investments

 

Progress at Jiangsu Yangzijiang Offshore Engineering Co. Ltd's ("YZJ Offshore") marine vessel yard on its first order, a Le Tourneau Super 116E Class design self-elevating mobile offshore jack up drilling rig ("Explorer 1"), continues, and the yard is preparing to deliver the rig.

 

Amedeo has an indirect 19.0% stake in YZJ Offshore which it holds through its 47.5% stake in the joint venture company, YZJ Offshore Engineering Pte Ltd.

 

With the recovering iron ore price, MGR Resources PTE Ltd ("MGR") stepped up its activities in this area utilising the working capital it borrowed from Amedeo. Also, with the improving environment, MGR is exploring further expanding its activities.

 

Amedeo has a 49.0% stake in MGR.

 

In January 2017, Amedeo acquired a 2.5% stake in Ganjin Kani Company ("GKC") for US$500,000, a copper mining company. GKC is a producing miner which has, to date, extracted around 1m tonnes of ore. GKC has three mines. Plans are being made to assess to Western Standards the potential copper concentrate and cathode resource in GKC's mines.

 MGR intends to work with GKC to supply copper to East Asia.

Financial Review

 

Revenue consists of various business services, invoiced in GBP, which Amedeo provides to MGR. During the six months, revenue was US$54,000 (2016: US$56,000), with the variance being entirely due to currency fluctuations.

 

Administrative costs were US$315,000 (2016: US$299,000). The increase was primarily due to fees associated with making the investment in GKC.

 

Amedeo's share of losses in associates was US$502,000 (2016: US$2,000). This was made up of a loss of US$410,000 (2016: profit of US$13,000 due to certain contract work completed in 2016 which was not repeated in 2017) at YZJ JV and a loss of US$92,000 (2016: loss of US$15,000) at MGR.

 

Foreign exchange gain amounts to US$22,000 (2016: loss of US$267,000). These were predominately due to translating GBP denominated loans into US$ and translating GBP bank balances at the period end exchange rate. This is a non-cash item.

 

Finance income increased to US$87,000 (2016: US$10,000) due to interest on additional loans made to MGR of GBP1,800,000 from Amedeo.

 

Overall loss on ordinary activities before taxation increased to US$717,000 (2016: US$632,000). Basic and fully diluted loss per share for the period was US$2.20 (2016: US$1.94).  

 

Foreign exchange translation differences due to Amedeo's indirect investment in YZJ Offshore were US$14,000 (2016: nil). Overall total comprehensive loss for the period was US$731,000 (2016: US$632,000).

 

At the period end, the carrying value on the balance sheet of investments in associates fell to US$13,869,000 (2016: US$16,210,000), with the decrease being due to the share of loss of associates.

Current assets fell to US$3,495,000 (2016: US$4,586,000). Cash at 30 June 2017 was US$1,033,000 (2016: US$3,998,000) primarily because of the acquisition of GKC and the loan to MGR in January.

Trade and other payables decreased to US$117,000 (2016: US$189,000) mainly due to accrued expenses which were settled before the end in this period.

Overall, at the period end, net and total assets were US$17,747,000 (2016: US$20,607,000) and US$17,864,000 (2016: US$20,796,000), respectively.

Outlook

 

Despite the current difficulties in both the marine vessels market and the and commodity markets, Amedeo is well resourced and remains focused on long term strategy of building a vertically integrated business in the resource and energy and related infrastructure sectors.

 

**ENDS**

 

Enquiries:

Glen Lau
Chief Executive Officer
Amedeo Resources PLC
Tel office: +44 20 7583 8304   

Zafar Karim
Executive Director
Amedeo Resources PLC
Tel office: +44 20 7583 8304   

Paul Shackleton
Nominated Adviser & Broker
WH Ireland
Tel office: +44 207 220 1666

Elliot Hance
Joint Broker
Beaufort Securities Limited
Tel office: +44 20 7382 8300

Notes

Amedeo Resources PLC is an investment company whose policy is to invest principally, but not exclusively, in the resources and resources infrastructure and asset sectors. Amedeo has a deep and broad global network and wide contact base in these sectors, including in East and South East Asia and the Middle East which it leverages to source and make investments. These sectors are strategically important. Amedeo is a proactive investor which assists its investee companies to grow by providing investment, expertise and contacts.
 

AMEDEO RESOURCES PLC

 

Consolidated unaudited statement of comprehensive income

for the six months ended 30 June 2017

 

 

 

Unaudited

 

Unaudited

 

Audited

 

 

Note

6 months ended 30.6.17 US$'000

6 months ended 30.6.16 US$'000

12 months ended 31.12.16 US$'000

Revenue

 

54

56

108

Cost of sales

 

-

-

-

 

 

______

______

______

Gross profit

 

54

56

108

 

 

 

 

 

Administrative expenses

 

(315)

(299)

(630)

Share based payments

 

(63)

(130)

(138)

Share of loss of associates

2

(502)

(2)

(881)

Foreign exchange gain/(losses)

 

22

(267)

(390)

 

 

____

____

____

Loss from operations

 

(804)

(642)

(1,931)

 

 

 

 

 

Finance income

 

87

10

44

 

 

 

 

______

______

______

Loss on ordinary activities before taxation

3

(717)

(632)

(1,887)

 

 

 

 

 

Taxation

 

-

-

-

 

 

______

______

______

Loss for the period

 

(717)

(632)

(1,887)

Other comprehensive income

 

 

 

 

Foreign exchange translation difference

 

(14)

-

(946)

 

 

______

______

______

Total comprehensive loss for the period

 

(731)

(632)

(2,833)

 

 

______

______

______

Basic and fully diluted loss per share (US$ cents)

3

(2.20c)

(1.94c)

(5.78c)

 

 

 

 

AMEDEO RESOURCES PLC

 

Consolidated unaudited statement of financial position

As at 30 June 2017

 

 

 

Unaudited

 

Unaudited

 

Audited

 

 

 

As at 30.6.17 US$'000

As at 30.6.16 US$'000

As at 31.12.16 US$'000

Assets:

 

 

 

 

Non-current assets

 

 

 

 

Investment in associates

 

13,869

16,210

14,386

Financial asset

 

500

-

-

 

 

_____

_____

_____

 

 

14,369

16,210

14,386

Current assets

 

 

 

 

Loans receivable

 

2,200

400

1,400

Other receivables

 

262

188

223

Cash and cash equivalents

 

1,033

3,998

2,510

 

 

_____

_____

_____

 

 

3,495

4,586

4,133

 

 

 

 

 

 

 

_____

_____

_____

Total assets

 

17,864

20,796

18,519

 

 

 

 

 

Liabilities:

 

 

 

 

Current liabilities

 

 

 

 

Trade and other payables

 

(117)

(189)

(104)

 

 

 

 

 

_____

_____

_____

Total liabilities

 

(117)

(189)

(104)

 

 

 

 

 

 

 

_____

_____

_____

Net assets

 

17,747

20,607

18,415

 

 

 

 

 

 

Capital and reserves

 

 

 

 

Called up equity share capital

 

5,804

5,804

5,804

Share premium account

 

 

29,103

29,103

29,103

Share-based payment reserve

 

766

695

703

Foreign exchange reserve

 

(479)

481

(465)

Accumulated losses

 

(17,447)

(15,476)

(16,730)

 

 

_____

_____

_____

Total equity

 

 

17,747

20,607

18,415

 

 

 

AMEDEO RESOURCES PLC

 

Consolidated unaudited cash flow statement

for the six months ended 30 June 2017

 

 

 

Unaudited

 

Unaudited

 

Audited

 

 

 

6 months ended 30.6.17

US$'000

6 months ended 30.6.16 US$'000

12 months ended

31.12.16

US$'000

Reconciliation of operating profit to net cash flow from operating activities

 

 

 

 

Loss for the period before tax

 

(717)

(632)

(1,887)

Adjustments for:

 

 

 

 

Share based payments

 

63

130

138

Share of loss of associates

 

502

2

881

Finance income

 

(87)

(10)

(44)

Unrealised FX losses

 

-

-

113

 

 

____

____

____

 

 

(239)

(510)

(799)

Changes in working capital:

 

 

 

 

(Increase)/decrease in receivables

 

(38)

339

304

Increase/(decrease) in payables

 

13

42

(43)

 

 

____

____

____

Net cash flows used from operating activities

 

(264)

(129)

(538)

 

 

 

 

 

Investing activities

 

 

 

 

Investment in financial asset

 

(500)

-

-

Loans made to associate

 

(1,800)

-

(1,000)

Loans repaid by associate

 

1,000

1,777

1,664

 

 

_____

_____

_____

Net cash (used in)/from investing activities

 

(1,300)

1,777

664

 

 

 

 

 

Financing activities

 

 

 

 

Finance income

 

87

10

44

 

Net cash from financing activities

 

_____

87

_____

10

______

44

 

 

 

 

 

Net (decrease)/increase in cash and equivalents

 

(1,477)

1,658

170

Cash and equivalents at beginning of period

 

2,510

2,340

2,340

Cash and equivalents at end of period

 

1,033

3,998

2,510

 

 

 

 

 

NOTES TO THE INTERIM ACCOUNTS
 

1. Basis of preparation
 

The accounting policies adopted are consistent with those of the previous financial year ended 31 December 2016.

This interim consolidated financial information for the six months ended 30 June 2017 has been prepared in accordance with AIM rule 18, 'Half yearly reports and accounts'. This interim consolidated financial information is not the group's statutory financial statements within the meaning of section 434 of the Companies Act 2006 (and information as required by section 435 of the Companies Act 2006) and should be read in conjunction with the annual financial statements for the year ended 31 December 2016, which have been prepared in accordance with International Financial Reporting Standards (IFRS) and have been delivered to the Registrar of Companies. The auditors have reported on those accounts; their report was unqualified, did not include references to any matters to which the auditors drew attention by way of emphasis of matter without qualifying their report and did not contain statements under section 498(2) or (3) of the Companies Act 2006.

The interim consolidated financial information for the six months ended 30 June 2017 is unaudited. In the opinion of the Directors, the interim consolidated financial information presents fairly the financial position, and results from operations and cash flows for the period. Comparative numbers for the six months ended 30 June 2016 are also unaudited.

This interim consolidated financial information is presented in US Dollars ($), rounded to the nearest US$'000 dollar.

2. Share of loss of associates

 

 

6 months ended 30.6.17

6 months ended 30.6.16

12 months ended 31.12.16

 

US$'000

US$'000

US$'000

 

 

 

 

Share of (loss)/profit of YZJ JV

(410)

13

(856)

Share of loss of MGR

(92)

(15)

(25)

 

____

____

____

 

(502)

(2)

(881)

 

The Company holds a 47.5% stake in YZJ JV and a 49.0% stake in MGR. YZJ JV reported an unaudited loss for the 6 months to 30 June 2017 of US$864,000 (2016: profit of US$27,000) and US$410,000 (2016: profit of US$13,000) represents Amedeo's share of YZJ Offshore's loss.

 

MGR reported a loss of US$187,000 for the period to 30 June 2017 (2016: loss of US$31,000), of which US$92,000 (2016: US$15,000) represents Amedeo's share of MGR's loss.

 

 

 

 

3. Loss per share

 

The basic and diluted loss per share for the period ended 30 June 2017 was 2.20c (2016: 1.94c). The calculation of loss per share is based on the loss of US$717,000 for the period ended 30 June 2017 (2016: US$632,000) and the weighted average number of shares in issue during the period for calculating the basic profit per share of 32,653,843 shares (2016: 32,653,843).

 

4. Preparation of interim report

 

This report was approved by the Directors on 25 September 2017.


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