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ANGLESEY MINING PLC - Interim report for the six months to 30 September 2018

Anglesey Mining plc

Half yearly report for the six months to30 September 2018

Chairman’s Statement and Management Report

In our most recent Annual Report to shareholders, issued in July, I commented that metal prices had softened somewhat during 2018 but that there was a strong expectation of a continued positive outlook for base metals, particularly for zinc and copper. Despite the current geopolitical uncertainty caused by fears of trade wars and tariffs, that general prognosis still holds and we continue to maintain a positive outlook for all these metals.

The recently announced and Cooperation Agreement entered into with QME Mining Technical Services, a division of , (“QME”) is a very important and positive step forward in the advancement of the copper, zinc, lead, gold and silver project, located on the island of Anglesey in . (See Anglesey Mining plc News release 26 November 2018).Project DevelopmentQME LtdParys MountainNorth Wales

QME is experienced in underground mine development and has developed and recruited the necessary skills in mine planning to deliver local and relevant mining expertise to assist Anglesey to progress the project at no direct cash cost to Anglesey or dilution of its shareholders.Parys Mountain

Under the Agreement, QME will, at its own cost, carry out an agreed programme of design, engineering and optimisation studies relating to the future development of .  This will enable Anglesey to complete this work without additional cash commitment.Parys Mountain

Anglesey has granted QME various rights relating to the future development of . On completion of the optimisation study Anglesey will award QME, on an exclusive basis, contracts for the development of the decline and underground mine development, including rehabilitation of the shaft, and in addition, will grant QME the right and option, upon completion of a Prefeasibility Study, to undertake at QME’s cost and investment, the underground development component of , with a scope to be agreed, to the point of commencement of production, in consideration of which QME would earn a 30% undivided joint venture interest in the project.  If exercised, this would represent a significant portion of the capital cost of the project and could be considered to be a major equity contribution in any future financing package.Parys MountainParys MountainParys Mountain

- Path towards ProductionParys Mountain

We have continued to review the results of the 2017 Scoping Study on with the objective of enhancing the economics of the project to attract the capital financing necessary to achieve our target of getting the into production at the earliest date possible. The 2017 Scoping Study by and recommended further work as interim steps towards undertaking a Feasibility Study, including more detailed mine planning and design, more engineering studies, additional metallurgical test work and a review of tailings management and environmental and planning permissions, all of which require new and further financing.Parys MountainParys Mountain MineMicon International LimitedFairport Engineering Limited

and Co-operation Agreement with QME Mining Technical Services will see the completion of a substantial part of the recommended further work on mine planning and design and project optimisation. The 2017 Scoping Study was based on mining only the 2.1 million tonnes of indicated resources reported by Micon in 2012. Micon had reported a further 4.1 million tonnes of inferred resources which were not incorporated into the Scoping Study. Development of even half of these inferred resources would significantly increase the projected life of the mine with potential positive outcomes on the project economics.The Project DevelopmentParys Mountain

The Development Agreement with QME will examine a revised mine model with the objective of incorporating some of the inferred resources, including part of the higher-grade inferred resources, into the earlier years of the mine plan with the intention of increasing the life of the mine to at least 10 years.Engine Zone

The 2017 Scoping Study was based on the initial development and production from the zone using a newly developed decline eventually leading to development of the deeper Engine zone and then the rehabilitation and use of the Morris Shaft as a hoisting facility. The QME programme will examine whether different approaches to accessing the orebodies, particularly by the early dewatering, rehabilitation and recommissioning of the Morris Shaft, could speed up access to the higher-grade Engine zone resources. This should have a beneficial effect upon both the net present value of the operation and the pay-back period.White Rock

It is expected that these optimisation studies will be completed by the middle of 2019 and, subject to financing being available, would then form the basis for commissioning of a Preliminary Feasibility Study to lead to an overall project financing package. In the meantime, we will continue to maintain our mineral interests in good standing. We have confirmed that our current planning consents remain in good order and we will make the appropriate preparations for those further environmental baseline studies that will be required as part of the expected Preliminary Feasibility Study. We will also continue to discuss concentrate and metal sales with brokers, traders and smelters as part of both the longer-term financing plan and as inputs to the future studies.

Iron Ore

Iron ore prices have continued to grow steadily if not spectacularly during 2018 and currently 62%Fe ore is trading at just under per tonne. The premiums for higher grade ore have weakened slightly but still provide an exceptional differential over the 62% Fe basis. This slow but steady growth period represents some consolidation after fairly erratic trading during the last five years and could herald the beginning of a more mature and financeable market.$75

Grangesberg

Anglesey continues to manage the Grangesberg iron ore project in though these activities have been kept at a minimum level while product prices have remained low. However, the greater maturity of the market coupled with some increase in price, the continuing premiums expected for premium product, and importantly the announcement by LKAB that its flagship Kiruna project in northern will have a shorter life than originally planned, makes the interest in developing the Grangesberg project albeit at significant capital cost much more likely. We continue to support Grangesberg and recognise that it is likely that further external partnerships will be required to raise the capital required for full development.Central SwedenSweden

Labrador

The group continues to hold a 12% interest in which owns extensive iron ore resources and facilities in the area of Labrador and in . These resources are kept on a stand-by care and maintenance basis and subject to financing are positioned to resume operations as soon as economic conditions warrant.Labrador Iron Mines LimitedScheffervilleQuebecCanada

Operations

As always, we have kept our corporate and operating costs at the lowest level consistent with maintaining our assets in good order. We will maintain this policy going forward but costs will increase once a feasibility study is commissioned on and as activity is resumed on our iron ore properties.Parys Mountain

Financial results

The group had no revenue for the period. The loss for the six months to was £137,117 (2017 - £167,186) and the expenditures on the mineral property in the period were £25,755 compared to £65,943 in the comparative period when there were additional expenses in respect of consultants’ fees. Net current assets at were £7,874 compared to £91,033 at . Further funding will be required for continuing expenses as well as the maintenance and development of the group’s mineral properties. A substantial amount of work on mine planning and project optimisation at will be completed at no cost to Anglesey under the Project Development Co-operation Agreement with QME Technical Services.30 September 201830 September 201831 March 2018Parys Mountain

Outlook

We remain confident that demand for metals will remain strong and the outlook for commodity prices will remain positive for the foreseeable future. There will be occasional pressures on price by external geopolitical forces but the underlying growth of the emerging industrialised nations particularly will support demand growth in the longer term.China

On that basis we look to move forward in a planned and sequential manner, firstly through optimisation studies to determine the best development plan and then advancing through feasibility for raising the necessary finance. We will also continue to review the commercial and development opportunities for our iron ore projects and look for other new opportunities as they present themselves.Parys Mountain

I would like to thank the current directors for their continuing diligence and support in moving the mine project forward and again thank shareholders for their continued confidence and patience.Parys Mountain

John F Kearney

Chairman

29 November 2018

Unaudited condensed consolidated income statement

Unaudited condensed consolidated statement of comprehensive income

All attributable to equity holders of the company

Unaudited condensed consolidated statement of financial position

All attributable to equity holders of the company

Unaudited condensed consolidated statement of cash flows

All attributable to equity holders of the company

Unaudited condensed consolidated statement of changes in group equity

All attributable to equity holders of the company

Notes to the accounts

1.  Basis of preparation

This half-yearly financial report comprises the unaudited condensed consolidated financial statements of the group for the six months ended . It has been prepared in accordance with the Disclosure and Transparency Rules of the , the requirements of IAS 34 - Interim financial reporting (as adopted by the ) and using the going concern basis and the directors are not aware of any events or circumstances which would make this inappropriate. It was approved by the board of directors on . It does not constitute financial statements within the meaning of section 434 of the Companies Act 2006 and does not include all of the information and disclosures required for annual financial statements. It should be read in conjunction with the annual report and financial statements for the year ended which is available on request from the company or may be viewed at .30 September 201829 November 201831 March 2018Financial Conduct AuthorityEuropean Unionwww.angleseymining.co.uk

The financial information contained in this report in respect of the year ended has been extracted from the report and financial statements for that year which have been filed with the Registrar of Companies. The report of the auditors on those accounts did not contain a statement under section 498(2) or (3) of the Companies Act 2006 and was not qualified. The half-yearly results for the current and comparative periods have not been audited or reviewed.31 March 2018

2.  Significant accounting policies 

The accounting policies applied in these unaudited condensed consolidated financial statements are consistent with those set out in the annual report and financial statements for the year ended .31 March 2018

Accounting policies

The accounting policies applied in these unaudited condensed consolidated financial statements are consistent with those set out in the annual report and financial statements for the year ended .31 March 2018

New standards and interpretations effective from :1 January 2018

The above standards and interpretations have not led to any changes to the group’s accounting policies (other than disclosure) or had any other material impact on its financial position or performance.

IFRS 9 ‘Financial Instruments’ has been implemented with effect from and has not had a material impact on either the unaudited condensed consolidated financial statements. However additional disclosures in respect of the impairment of financial assets may be required in the financial statements for the year ending . IFRS 15 has no effect in this period as the group currently has no customers.1 April 201831 March 2019

New standards and interpretations effective from :1 January 2019

New standards and interpretations effective from :1 January 2020

The directors expect that the adoption of the above pronouncements (with the possible exceptions of IFRS9 and IFRS16) will have no material impact to the financial statements in the period of initial application other than disclosure.  

IFRS 16 ‘Leases’ will be effective for periods beginning on or after and therefore will be effective in the financial statements for the year ending on ; transition to IFRS 16 should take place on . The directors have not yet assessed the full impact IFRS16 on these financial statements but in view of the nature of the group’s leases, which are mineral leases with a notice periods of more than one year, believe that it will not have a significant effect.1 January 201931 March 20201 April 2019

There have been no other new or revised International Financial Reporting Standards, International Accounting Standards or Interpretations that are in effect since that last annual report that have a material impact on the financial statements.

3.  Risks and uncertainties

The principal risks and uncertainties set out in the group's annual report and financial statements for the year ended remain the same for this half-yearly financial report and can be summarised as: development risks in respect of mineral properties, especially in respect of permitting and metal prices; liquidity risks during development; and foreign exchange risks. More information is to be found in the 2018 annual report – see note 1 above.31 March 2018

4.  Statement of directors' responsibilities

The directors confirm to the best of their knowledge that: (a) the unaudited condensed consolidated financial statements have been prepared in accordance with the requirements of IAS 34 Interim financial reporting (as adopted by the ); and (b) the interim management report includes a fair review of the information required by the Disclosure and Transparency Rules (4.2.7 R and 4.2.8 R). This report and financial statements were approved by the board on and authorised for issue on behalf of the board by , chief executive officer and , finance director.European UnionFCA's29 November 2018Bill HooleyDanesh Varma

5.  Activities 

The group is engaged in mineral property development and currently has no turnover. There are no minority interests or exceptional items.

6.  Earnings per share

The loss per share is computed by dividing the loss attributable to ordinary shareholders of £0.137 million (loss to £0.167m), by 177,608,051 (2017 – 177,608,051) - the weighted average number of ordinary shares in issue during the period. Where there are losses the effect of outstanding share options is not dilutive.30 September 2017

7.  Business and geographical segments

There are no revenues. The cost of all activities charged in the income statement relates to exploration and development of mining properties. The group's income statement and assets and liabilities are analysed as follows by geographical segments, which is the basis on which information is reported to the board.

Income statement analysis

   

Assets and liabilities

8.  Deferred tax

There is an unrecognised deferred tax asset of £1.3 million ( - £1.3m) which, in view of the group's results, is not considered to be recoverable in the short term. There are also capital allowances, including mineral extraction allowances, exceeding £12.5 million (unchanged from ) unclaimed and available. No deferred tax asset is recognised in the condensed financial statements.31 March 201831 March 2018

9.  Mineral property exploration and evaluation costs

Mineral property exploration and evaluation costs incurred by the group are carried in the unaudited condensed consolidated financial statements at cost, less an impairment provision if appropriate. The recovery of these costs is dependent upon the successful development and operation of the project which is itself conditional on finance being available to fund such development. During the period expenditure of £25,755 was incurred (six months to - £65,943). There have been no indicators of impairment during the period.Parys Mountain30 September 2017

10.  Investments

The group’s investment is classified as ‘unquoted’ and is held at a nominal value of £1.Labrador:  

The group has a 6% holding in (an unquoted Swedish company) and a right of first refusal over shares amounting to a further 51% of that company. This investment has been initially recognised and subsequently measured at cost, on the basis that the shares are not quoted and a reliable fair value is not able to be estimated.Grangesberg:  Grangesberg Iron AB

11.  Share capital

12.  Financial instruments

13.  Events after the reporting period 

None.

14.  Related party transactions 

None.

Anglesey Mining plc

Directors:

                                                        John Kearney                                Chairman

                                                        Bill Hooley                                      Chief executive

                                                                                      Finance directorDanesh Varma

                                                        David Lean                                     Non executive

                                                                                       Non executiveHoward Miller

site: , Amlwch, Anglesey, LL68 9RE   Phone 01407 831275Parys MountainParys Mountain

office: Painter's , , , EC4V 2AN   Phone 07740 932766London8 Little Trinity LaneLondonHall Chambers

Registered office: Tower , St. Katharine's Way, , E1W 1DDBridge HouseLondon

Share registrars: Capita Registrars www.capitaregistrars.com

Phone:  0371 664 0445 - for all change of address and shareholder administration matters (calls are charged at standard geographic rate and will vary by provider), from overseas +44 371 664 0445 (charged at the applicable international rate). Web site:                                          E-mail:
www.angleseymining.co.uk[email protected]

Shares listed on the - LSE:AYM               Company registration number 1849957London Stock Exchange

Notes    Unaudited six months    Unaudited six months
                                 ended 30 September 2018 ended 30 September 2017

All operations are                          £                       £
continuing

 Revenue                                               -                       -

 Expenses                                       (57,477)                (78,100)

 Equity-settled employee                               -                 (9,324)
 benefits

 Investment income                                    52                      56

 Finance costs                                  (79,719)                (79,954)

 Foreign exchange movement                            27                     136

Loss before tax                                (137,117)               (167,186)

 Taxation                    8                         -                       -

Loss for the period          7                 (137,117)               (167,186)

 Loss per share

 Basic - pence per share                          (0.1)p                  (0.1)p

 Diluted - pence per share                        (0.1)p                  (0.1)p
Loss for the period              (137,117) (167,186)

 Other comprehensive income

 Items that may subsequently be
 reclassified to profit or loss:

 Exchange difference on           (21,265)    21,155
 translation of foreign holding

Total comprehensive loss for     (158,382) (146,031)
the period
Notes Unaudited 30 September Audited 31 March 2018
                                                    2018

                                            £                      £

Assets

 Non-current assets

 Mineral property             9               15,136,896            15,111,141
 exploration and evaluation

 Property, plant and                             204,687               204,687
 equipment

 Investments                 10                   86,660                86,660

 Deposit                                         123,279               123,227

                                              15,551,522            15,525,715

 Current assets

 Other receivables                                18,014                19,790

 Cash and cash equivalents                        57,537               137,113

                                                  75,551               156,903

Total assets                                  15,627,073            15,682,618

Liabilities

 Current liabilities

 Trade and other payables                       (67,677)              (65,870)

                                                (67,677)              (65,870)

 Net current assets                                7,874                91,033

 Non-current liabilities

 Loans                                       (3,644,266)           (3,543,236)

 Long term provision                            (50,000)              (50,000)

                                             (3,694,266)           (3,593,236)

Total liabilities                            (3,761,943)           (3,659,106)

Net assets                                    11,865,130            12,023,512

Equity

 Share capital               11                7,286,914             7,286,914

 Share premium                                10,171,986            10,171,986

 Currency translation                           (63,286)              (42,021)
 reserve

 Retained losses                             (5,530,484)           (5,393,367)

Total shareholders' funds                     11,865,130            12,023,512
Notes    Unaudited six months    Unaudited six months
                                 ended 30 September 2018 ended 30 September 2017

                                            £                       £

Operating activities

 Loss for the period                           (137,117)               (167,186)

 Adjustments for:

 Investment income                                  (52)                    (56)

 Finance costs                                    79,719                  79,954

 Equity-settled employee                               -                   9,324
 benefits

 Foreign exchange movement                          (27)                   (136)

                                                (57,477)                (78,100)

 Movements in working
 capital

 Decrease/(increase) in                            1,812                (10,636)
 receivables

 Increase/(decrease) in                              694                (25,693)
 payables

Net cash used in operating                      (54,971)               (114,429)
activities

Investing activities

 Investment income                                     -                       6

 Mineral property                               (24,632)                (51,918)
 exploration and
 evaluation

Net cash used in investing                      (24,632)                (51,912)
activities

Financing activities

 Loans                                                 -                       -

Net cash generated from                                -                       -
financing activities

Net (decrease) in cash and cash                 (79,603)               (166,341)
equivalents

Cash and cash equivalents                        137,113                 392,293
at start of period

Foreign exchange movement                             27                     136

Cash and cash equivalents                         57,537                 226,088
at end of period
Share     Share     Currency   Retained losses   Total
                    capital   premium   translation        £            £
                       £         £        reserve
                                             £

Equity at 1 April  7,286,914 10,171,986    (42,021)     (5,393,367) 12,023,512
2018 - audited

Total
comprehensive
income for the
period:

Exchange                   -          -    (21,265)               -   (21,265)
difference on
translation of
foreign holding

Loss for the               -          -           -       (137,117)  (137,117)
period

Total                      -          -    (21,265)       (137,117)  (158,382)
comprehensive
income for the
period

Equity-settled             -          -           -               -          -
employee benefits

Equity at          7,286,914 10,171,986    (63,286)     (5,530,484) 11,865,130
30 September 2018
- unaudited

Comparative period

Equity at 1 April  7,286,914 10,171,986    (73,510)     (5,124,502) 12,260,888
2017 - audited

Total
comprehensive
income for the
period:

Exchange                   -          -      21,155               -     21,155
difference on
translation of
foreign holding

Loss for the               -          -           -       (167,186)  (167,186)
period

Total                      -          -      21,155       (167,186)  (146,031)
comprehensive
income for the
period

Equity-settled             -          -           -           9,324      9,324
employee benefits

Equity at          7,286,914 10,171,986    (52,355)     (5,282,364) 12,124,181
30 September 2017
- unaudited
--  IFRS 9 Financial Instruments;
    --  IFRS 15 Revenue from Contracts with Customers;
    --  Interpretation IFRIC 22 Foreign Currency Transactions and Advance
        Consideration;
    --  Amendments to IAS 40 Transfer of Investment Property;
    --  Amendments to IFRS 2 Share based payments, on clarifying how to account
        for certain types of share-based payment transactions; and
    --  Annual improvements to IFRS Standards 2014-2016 Cycle (certain items
        effective from ).1 January 2017
--  Clarification to IFRS15 revenue from contracts with customers;
    --  Annual improvements to IFRS Standards 2015-2017 Cycle;
    --  Amendments to IFRS 9 Financial instruments, amendments in relation to
        prepayment features with negative compensation;
    --  Amendments to IAS 28 Investments in associates, on long term interests
        in associates and joint ventures;
    --  Amendments to IAS 19 Employee benefits on plan amendment, curtailment or
        settlement;
    --  IFRIC 23 Uncertainty over Income Tax Treatments; and
    --  IFRS 16 Leases.
--  Conceptual Framework (Revised) and amendments to related references in
        IFRS standard.
Unaudited six months ended 30 September 2018

                       UK     Sweden - investment Canada - investment   Total

                        £              £                   £              £

Expenses             (57,477)                   -                   -  (57,477)

Equity settled              -                   -                   -         -
employee benefits

Investment income          52                   -                   -        52

Finance costs        (72,117)             (7,602)                   -  (79,719)

Exchange rate               -                  27                   -        27
movements

Loss for the period (129,542)             (7,575)                   - (137,117)
Unaudited six months ended 30 September 2017

                       UK     Sweden - investment Canada - investment   Total

                        £              £                   £              £

Expenses             (78,100)                   -                   -  (78,100)

Equity settled        (9,324)                   -                   -   (9,324)
employee benefits

Investment income          56                   -                   -        56

Finance costs        (72,116)             (7,838)                   -  (79,954)

Exchange rate             136                   -                   -       136
movements

Loss for the period (159,348)             (7,838)                   - (167,186)
`                                  Unaudited 30 September 2018

                       UK      Sweden investment Canada investment    Total

                        £              £                 £              £

Non current assets  15,464,862            86,659                 1  15,551,522

Current assets          74,446             1,105                 -      75,551

Liabilities        (3,452,195)         (309,748)                 - (3,761,943)

Net assets/         12,087,113         (221,984)                 1  11,865,130
(liabilities)

                                      Audited 31 March 2018

                       UK      Sweden investment Canada investment       Total

                        £              £                 £              £

Non current assets  15,439,055            86,659                 1  15,525,715

Current assets         155,792             1,111                 -     156,903

Liabilities        (3,378,271)         (280,835)                 - (3,659,106)

Net assets/         12,216,576         (193,065)                 1  12,023,512
(liabilities)
Labrador Grangesberg  Total

                                              £           £      £

Balance at 1 April 2018, 31 March 2018        1      86,659 86,660
and 31 March 2019
Ordinary shares of 1p Deferred shares of 4p     Total

Issued and             Nominal      Number   Nominal      Number   Nominal
fully paid             value £               value £               value £

At 31 March 2017 and 1,776,081 177,608,051 5,510,833 137,770,835 7,286,914
31 March 2018
Group              Available for sale assets       Loans & receivables

                   Unaudited 30  31 March 2018  Unaudited 30  31 March 2018
                  September 2018               September 2018

                               £             £              £             £

Investments                    1             1              -             -

Deposit                        -             -        123,279       123,227

Other receivables              -             -         18,014        19,790

Cash and cash                  -             -         57,537       137,113
equivalents

                               -             -

                               1             1        198,830       280,130

                     Financial liabilities
                   measured at amortised cost

                   Unaudited 30  31 March 2018
                  September 2018

                               £             £

Trade payables          (17,337)      (17,631)

Other payables          (50,340)      (48,239)

Loans                (3,644,266)   (3,543,236)

                     (3,711,943)   (3,609,106)

Quick facts: Anglesey Mining PLC

Price: 1.95

Market: LSE
Market Cap: £3.65 m
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