08:00 Fri 30 Aug 2019
Alba Min Res PLC - Half-year Report
("Alba" or the "Company")
HALF-YEARLY REPORT
The Board of Directors of
CHAIRMAN'S STATEMENT
During the six months to
1. REVIEW OF ACTIVITIES
We have made great strides across our range of assets and investments during the period, with significant progress in particular at Clogau, Thule Black Sands and Horse Hill, and with the only definitive reverse having been encountered at Brockham which, it must be stressed, has never been a core asset for the Company.
As announced on
The following review highlights the progress achieved during the period, as well as giving further details regarding the outcome of the Board's recent operational review.
1.1 CLOGAU GOLD PROJECT (WALES)
Significant progress was made at the
Potential extensions to existing mines have also been identified, with infill sampling confirming continuity of an anomaly (the "
We are now planning the trenching of selected regional gold targets and a drilling campaign to target extensions to Llechfraith mine area. Having completed extensive safety and rehabilitation works within the mine, we have now commenced an underground programme for the clean-up and sampling of broken stock material working from the Tyn Y Cornel (upper) level within the Clogau-St David's Gold Mine.
The Board has determined that the
o the existing significant underground development, which would cost many millions of pounds to construct at today's prices, already in place across five mine areas (albeit there remain areas in need of rehabilitation work);
o the commercial potential of Clogau, which is underpinned by a number of factors including the fact that historic production was from very high-grade pods, the premium price that Welsh gold attracts over normal spot rates and the rising price of gold generally; and
o the untapped gold potential that exists throughout Alba's entire licence area, as illustrated by the ten new gold anomalies that Alba has so far discovered across the Dolgellau Gold Belt, with one anomaly dwarfing the size of the historic Clogau-St David's Mine.
1.2 GREENLAND ASSETS
Thule Black Sands Ilmenite Project ("TBS")
In
To achieve a maiden resource at TBS after just one full field season is a phenomenal result. An Inferred Resource of 19 million tonnes is a huge step forward for this high-grade ilmenite project. For a 3 million tonnes per annum mining operation, this would already mean a mine life of more than six years.
The announcement by Bluejay Mining plc (LON: JAY) on
TBS remains a key asset for the Company. While we are not in the field at TBS this summer, we will assess the conditions for undertaking further field work there during Q1 of 2020.
Amitsoq Graphite Project
With the exceptionally high graphite grades found at Amitsoq and the fact that it was formerly a producing mine, the Alba Board continues to believe that Amitsoq has significant potential as a development asset.
As previously reported, the next phase of field work at Amitsoq should involve drilling to confirm structure and define a maiden JORC resource. However, with the focus being on field operations at Clogau for the rest of this year, the Board has determined that drilling at Amitsoq should be deferred until 2020.
After the period end, on
Inglefield Multi-Element Project
The data from our maiden exploration campaign at the
While Inglefield is at an earlier stage than TBS or Amitsoq, the Board considers Inglefield to have significant potential. However, we have decided to defer field work at Inglefield this summer and will re-evaluate the position in Q1 of 2020.
Overall Greenland Strategy
Overall, Alba's Board believes the Company's
1.3 WEALD BASIN OIL INVESTMENTS (ENGLAND)
Brockham Oil Project
During the period, the Operator at Brockham, Angus Energy, announced that it had successfully perforated Brockham no.4 well as the precursor to commencing commercial flow test operations from the Kimmeridge limestones there. However, Angus then announced that part of the perforated interval was producing water, which was believed to be inhibiting the flow of oil. Despite subsequently successfully isolating the water-producing zone, Angus was still unable to recover oil to surface, leading it to conclude that in its view it would not be likely for commercial hydrocarbon flow to be achieved from the Kimmeridge layer at Brockham.
We now await the Operator's further advice as to the future of the Brockham licence and site. While the Board is naturally disappointed by the outcome of work activities at Brockham, Alba's investment in Brockham has always been a very small part of Alba's asset portfolio at just 4.1% of the Company's total net assets of
Horse Hill Oil Project
Steady progress was made at Horse Hill during the period.
In
Regardless of whether Alba continues to decline to fund future cash calls, its investment in Horse Hill remains a near-term cash-generative opportunity for the Company. As such, Alba is open to either retaining its stake in the project through to production, when material oil sales revenues should be generated, or to giving serious consideration to any third-party offer received prior to production which properly reflects the inherent value of Alba's stake.
1.4 LIMERICK BASE METALS (IRELAND)
In
2. CORPORATE
On
Shortly after the period end, on
3. RESULTS
The Group made a loss attributable to equity holders of the parent for the period, after taxation, of
4. OUTLOOK
The focus of our recent operational review was on determining those assets with the greatest potential to achieve material returns for Alba within the shortest timeframe. The outcome of the review is that those assets currently are Clogau, Amitsoq, TBS and Horse Hill.
After the excellent results we have announced at Clogau at regular intervals over the past 12 months, it should come as no surprise that Clogau will remain a key focus of the business moving forward.
The other asset within our portfolio that has the shortest likely timeline to commercial production is Horse Hill. We have made a large investment in the
Our focus will be on deploying the Company's funds towards fast-tracking those of our mining assets that can most quickly move into the development and production phases, as that is where Alba will be able to make significant returns for shareholders, with cash-flow generated either from production or, if the right opportunity arises, by selling an asset for a multiple of our total exploration spend.
With that in mind, we have also ranked TBS and Amitsoq as key assets. We will use the next six months to refine the likely products and markets for the high-grade ilmenite from TBS and the high-grade graphite from Amitsoq. At the same time, we will be seeking an appropriate joint venture partner to invest in our
I believe the course of action identified in our operational review to be the best means to deliver real value for shareholders in the near to medium term. With our priorities so defined, Alba shareholders can expect to see plenty of progress in the coming weeks and months.
George Frangeskides
Executive Chairman
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.
Forward Looking Statements
This announcement contains forward-looking statements relating to expected or anticipated future events and anticipated results that are forward-looking in nature and, as a result, are subject to certain risks and uncertainties, such as general economic, market and business conditions, competition for qualified staff, the regulatory process and actions, technical issues, new legislation, uncertainties resulting from potential delays or changes in plans, uncertainties resulting from working in a new political jurisdiction, uncertainties regarding the results of exploration, uncertainties regarding the timing and granting of prospecting rights, uncertainties regarding the Company's ability to execute and implement future plans, and the occurrence of unexpected events. Actual results achieved may vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors.
For further information, please contact:
George Frangeskides, Executive Chairman +44 20 3907 4297
James Caithie/
Yellow Jersey PR (Financial PR/ IR)
Harriet Jackson/Henry Wilkinson
alba@yellowjerseypr.com +44 20 3004 9512
UNAUDITED CONSOLIDATED INCOME STATEMENT
FOR THE SIX MONTHS ENDED
|
|
Unaudited 6 months ended |
Unaudited 6 months ended |
Audited Year ended |
|
|
|
|
|
Revenue |
|
- |
- |
- |
Cost of sales |
|
- |
- |
- |
Gross loss |
|
- |
- |
- |
Administrative expenses |
|
(376,163) |
(381,367) |
(885,314) |
Operating (loss)/profit |
|
(376,163) |
(381,367) |
(885,314) |
Revaluation of investment |
|
- |
- |
825,533 |
Share of net loss of joint venture |
|
- |
- |
(15,235) |
(Loss)/profit before tax |
|
(376,163) |
(381,367) |
(75,106) |
Taxation |
|
- |
- |
- |
(Loss)/profit for the year |
|
(376,163) |
(381,367) |
(75,106) |
|
|
|
|
|
Attributable to: |
|
|
|
|
Equity holders of the parent |
|
(375,970) |
(380,358) |
(72,823) |
Non-controlling interests |
|
(193) |
(1,009) |
(2,283) |
|
|
(376,163) |
(381,367) |
(75,106) |
|
|
|
|
|
Loss per ordinary share |
|
|
|
|
Basic and diluted |
|
|
|
(0.003) pence |
|
|
|
|
|
UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT
|
|
Unaudited 6 months ended |
Unaudited 6 months ended |
Audited Year ended |
|
|
|
|
|
Non-current assets |
|
|
|
|
Tangible fixed assets |
|
85,000 |
- |
85,000 |
Intangible fixed assets |
|
3,340,498 |
1,543,177 |
3,076,783 |
Investments |
|
5,430,000 |
4,061,467 |
5,430,000 |
Available for sale assets |
|
7,161 |
18,495 |
7,161 |
Total non-current assets |
|
8,862,659 |
5,623,139 |
8,598,944 |
|
|
|
|
|
Current assets |
|
|
|
|
Trade and other receivables |
|
79,453 |
209,260 |
61,894 |
Cash and cash equivalents |
|
23,443 |
1,151,385 |
585,795 |
Total current assets |
|
102,896 |
1,360,645 |
647,689 |
|
|
|
|
|
Current liabilities |
|
|
|
|
Trade and other payables |
|
(485,096) |
(202,606) |
(493,195) |
Financial liabilities |
|
(294,207) |
(253,074) |
(287,250) |
Total current liabilities |
|
(779,303) |
(455,680) |
(780,445) |
|
|
|
|
|
Net assets |
|
8,186,252 |
6,528,104 |
8,466,188 |
|
|
|
|
|
Capital and reserves |
|
|
|
|
Called up share capital |
|
4,114,233 |
3,686,246 |
4,099,233 |
Share premium account |
|
6,816,382 |
5,836,868 |
6,786,382 |
Warrant reserve |
|
678,521 |
350,979 |
624,039 |
Retained losses |
|
(3,543,913) |
(3,475,478) |
(3,167,943) |
Merger reserve |
|
200,000 |
200,000 |
200,000 |
Foreign currency reserve |
|
187,723 |
194,716 |
190,978 |
Equity attributable to equity holders of the parent |
|
8,452,946 |
6,793,331 |
8,732,689 |
Non-controlling interests |
|
(266,694) |
(265,227) |
(266,501) |
Total equity |
|
8,186,252 |
6,528,104 |
8,466,188 |
UNAUDITED CONSOLIDATED CASH FLOW STATEMENT
FOR THE SIX MONTHS ENDED
|
|
Unaudited 6 months ended |
Unaudited 6 months ended |
Audited Year ended |
|
|
|
|
|
Cash flows from operating activities |
|
|
|
|
Operating loss |
|
(376,163) |
(381,367) |
(885,314) |
Share option charge |
54,482 |
119,010 |
243,156 |
|
Provision for impairment |
|
- |
(4,160) |
7,174 |
Foreign exchange revaluation adjustment |
|
(3,255) |
1,030 |
(2,707) |
Increase / (decrease) in creditors |
|
(1,142) |
22,593 |
120,032 |
(Increase)/ decrease in debtors |
|
(17,559) |
(173,984) |
(26,619) |
Net cash used in operating activities |
|
(343,637) |
(416,878) |
(544,278) |
|
|
|
|
|
Cash flows from investing activities |
|
|
|
|
Payments for deferred exploration expenditure |
|
(263,715) |
(81,174) |
(733,527) |
Cash on acquisition of subsidiary |
|
- |
- |
44,661 |
Investments |
|
- |
(442,002) |
(985,002) |
Net cash used in investing activities |
|
(263,715) |
(523,176) |
(1,673,868) |
|
|
|
|
|
Cash flows from financing activities |
|
|
|
|
Proceeds from issue of shares and warrants |
|
45,000 |
1,552,000 |
2,300,000 |
Cost of issue |
|
- |
(87,500) |
(123,000) |
Net cash generated from financing activities |
|
45,000 |
1,464,500 |
2,177,000 |
|
|
|
|
|
Net increase in cash and cash equivalents |
|
(562,352) |
524,446 |
(41,144) |
Cash and cash equivalents at beginning of period |
|
585,795 |
626,939 |
626,939 |
Cash and cash equivalents at end of year |
|
23,443 |
1,151,385 |
585,795 |
|
|
|
|
|
NOTES TO THE HALF-YEARLY FINANCIAL INFORMATION
1. Basis of preparation
The Group consolidates the financial statements of the Company and its subsidiary undertakings.
The financial information has been prepared under the historical cost convention in accordance with International Financial Reporting Standards ("IFRS"), International Accountant Standards ("IAS") and IFRS Interpretations Committee ("IFRIC") interpretations as adopted by the
2. Taxation
No charge for corporation tax for the period has been made due to the expected tax losses available.
3. Loss per share
Basic loss per share is calculated by dividing the loss attributable to ordinary shareholders of
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