Galileo Resources PLC (LON:GLR)

Galileo Resources PLC (LON:GLR)


Share Price
0.69 p
Change
0 (0.00 %)
Market Cap
£2.09 m
Proactive Investors - Run By Investors For Investors

Galileo Resources PLC RNS Release

Half-year Report


RNS Number : 1370L
Galileo Resources PLC
20 December 2018
 

 

20 December 2018

Galileo Resources PLC

("Galileo" or "the Company" or "the Group")

 

Interim results for the six months ended 30 September 2018

 

Galileo (AIM: GLR), the exploration and development mining company, announces its unaudited interim results for the six-month period ended 30 September 2018.

 

Highlights

 

Period under review

 

·     The Company commissioned an independent conceptual tonnage grade ("CGT") model of the Phase 1 drilling results - for Star Zinc-, which demonstrated at nominal 3% Zn cut-off- a potential deposit target of 485 000 tonnes grading 15.4% Zn grade 1

 

·     This CGT model represents an 80% increase in deposit tonnage with a 14% decrease in grade when compared to previous CGT modelling ("conservative case") in 2015 based on historical exploration data 2

 

·     Based on positive recommendations, the Company undertook and completed a Phase 2 drilling programme, comprising 26 diamond drill holes that targeted open-ended areas east- north-east and southeast of the known mineralised zone 3.

 

·     Loss per share 0.1 pence compared to 0.1 pence for the comparative period (2017)

 

·     Operating expenses down 26.36% to £ 255,677 compared to £ 347,190 for the comparative period (2017)

 

Post period under review

 

·     The Company commissioned a second independent CGT block model estimate using independent chemical analyses from both Phase 1 and pXRF (portable X-ray fluorescence) spectrometry data from Phase 2 drilling.4

 

·     Phase 2 drilling increased significantly Star Zinc's non-JORC CGT: the second CGT modeling estimated an Exploration Target, at above 3% Zn cut off, of between 600,000 and 900,000 tonnes (t) with an estimated average grade of 10 to 12 % Zn and an estimated 90,000 to 110,000 t Zn metal 3

 

·     The Company conditionally acquired from BMR Group plc, ("BMR") the Kabwe Residual Rights, which includes the Kashitu Zinc prospect within Kabwe Mining Licence (6990-HQ-LML) ("Kabwe ML") but excludes BMR's small-scale licence 7081-HQ-SML ("Kabwe Tailings Recovery Project") situated within Kabwe ML

 

·     The aforementioned also includes the remaining 15% of the shares, that Galileo currently does not hold in Enviro Zambia Ltd,), the entity which indirectly owns 95% of the Star Zinc Project.

·     With respect to the Glenover Phosphate project, the Company's 36%-owned Glenover Phosphate (Pty) Ltd submitted to the DWS on 9 November 2018, a Water Usage Licence Application for the project to the Department of Water and Sanitation (DWS) for section 21 (various water uses) in terms of Section 40 of the National Water Act (1998)

 

1. As announced on 4 June 2018, the CGTs in this interim report are not reported in compliance with any AIM Standard, including JORC (Joint Ore Reserves Committee) 2012 /CIM NI (Canadian Institute of Mining, Metallurgy & Petroleum National Instrument) 43-101 or similar CRIRSCO (Committee for Mineral

 

2 (BMR - AIM RNS announcement 16 August 2016)

 

3   Galileo RNS announcement 14 November 2018

 

4 Independent chemical analyses for Phase 2 for were being validated at time of this interim report. 

 

Operational overview 

 

Star Zinc - Zambia

Period under review

 

The Company directly holds a 80.75% interest in the Star Zinc Project near Lusaka in Zambia. 

 

Operations

 

All independent laboratory chemical assays were received for Stars Zinc Project's Phase 1 drilling programme (programme completed 3 March 2018) which comprised, amongst other things, a total 1,199m diamond drill holes (DDHs) as to 353 m PQ size drill core and 846m HQ size drill core.. 

 

Using these results, independent mining industry consultants CSA Global (UK) Ltd completed a first conceptual grade tonnage (CGT) estimate in May 2018, which modeled a mineralised deposit for Star Zinc of 485 000 tonnes grading 15.4% Zn with a calculated 74, 800 tonnes zinc metal. This CGT is not reported in compliance with JORC (Joint Ore Reserves Committee) 2012 /CIM NI (Canadian Institute of Mining, Metallurgy & Petroleum National Instrument) 43-101 or similar CRIRSCO (Committee for Mineral Reserves International Reporting Standards) aligned reporting code. CSA's CGT report recommended, amongst other things, further drilling, both infill and extension, to increase the deposit size. The Company engaged GeoQuest to undertake a Phase 2 drilling programme, which commenced on 14 August 2018 and was completed 16 October 2018. The programme comprised 26 DDHs totaling 1 022m as to 321m PQ size drill core and 719 m HQ size drill core. 

 

This Phase 2 drilling targeted areas that were open ended east-north-east and south-east of the known mineralised zone, which the previously announced (4 June 2018) modelled conceptual grade tonnage ("CGT") estimate highlighted as having the exploration potential to extend the mineralisation and deposit size. Initial drill core analysis was completed using portable x-ray fluorescence spectrometry ("pXRF") in order to provide semi-quantitative results that would guide the selection of mineralised samples for independent chemical analysis later.

 

During the period under review, UK based consultants Addison Mining Services Ltd  ("AMS") commenced a second CGT (block model) estimate using independent chemical analyses from phase 1 and the pXRF data from the phase 2 drilling programmes.

 

Post period under review

 

AMS completed modeling the second CGT (block model) estimate: ASM's in-house CGT at various cut-off grades are presented in Table 1. This CGT (block model) is not reported in compliance with JORC2012/CIM NI 43-101 or similar CRIRSCO aligned reporting code.  AMS issued its CGT estimate on 8 November 2018, details of which and recommendations made therein, can be found in the Company's RNS announcement of 14 November 2018

 

The highlights of this second CGT included:

 

·     Phase 2 drilling increased significantly Star Zinc's non-JORC CGT estimate over that published

on 4 June 2018. Wireframe models of the deposit suggest the mineralisation remains potentially open ended to east/south east.

 

·     Exploration Target at above 3% Zn cut off is estimated as being between 600,000 and

900,000 t with an estimated average grade of 10 to 12% Zn, containing an estimated 90,000 to 110,000 t Zn metal.

 

·     Analysis of the model suggests that any completion of a Maiden Resource Estimate (MRE) on Star Zinc will likely result in a larger tonnage and contained metal at lower grade than the previously announced non JORC 2012 CGT of 485, 000 tonnes at 15.4% Zn and 75, 000 tonnes of contained zinc metal.

 

·     The new Model applied bulk density measurements to specific Zn grade and not to a global value as previous CGT modeling had done, which has resulted in a more realistic grade- tonnage relationship.

 

·     Additional specific domains created by the Model identifies areas for potential to mine selectively high grade Willemite. 

 

Table 1                 Summary of ASM In-House Grade Tonnage Estimate

 

Cutoff Grade (COG)

Zn%

 

VOLUME

 

TONNES

 

DENSITY

 

GRADE 

Zn%

 

 

Zn METAL

(tonnes)

30

4, 000

13, 000

3.63

33

4, 000

20

25, 000

90, 000

3.63

26

24, 000

15

45, 000

160, 000

3.25

23

35, 000

12

65, 000

220, 000

3.25

20

44, 000

10

85, 000

290, 000

3.25

18

51, 000

5

210, 000

670, 000

3.15

12

78, 000

3

270, 000

840, 000

2.83

10

85, 000

2

300, 000

930, 000

2.83

9

88, 000

1

320, 000

980, 000

2.81

9

88, 000

0

320, 000

1,000, 000

2.81

9

88, 000

* Volume, tonnes and metal are rounded to 2 significant figures

 

Independent chemical analyses for phase 2 drill core samples were received in November 2018 and are being QA-QC validated at time of this interim report

 

Kashitu Project ("Kashitu")

 

Kashitu is located in the SE corner of BMR's 100% owned Kabwe ML site in Zambia. The area is considered prospective, due to elevated zinc-in-soil values, which could be amenable to zinc extraction via leaching technologies, similar to that proposed for Kabwe Tailings Recovery Project. Historical soil sampling by Billiton (now BHP) has recorded zinc values greater than 15, 000 ppm Zn (1.5% Zn) over a 1.2 km by 0.3 km NW verging area, which is in close proximity to historical workings. Reportedly high-grade surficial willemite was extracted from the historical workings and fed in to the main historical Kabwe Mine plant, during its operation.

 

An interpretation of existing RAB (rotary air blasting), RC (reverse circulation) and diamond drilling has refined the area of potential interest, and is likely associated with a ENE-trending structure containing steeply dipping, high-grade willemite veins.

 

Operations

 

Period under review

 

 The Company executed a binding and exclusive conditional Heads of Agreement ("Kashitu Agreement") 5, to acquire (the "Acquisition") from BMR Group plc, ("BMR") the Kabwe Residual Rights, which includes Kabwe Mining Licence (6990-HQ-LML) ("Kabwe ML") but excludes BMR's small-scale licence 7081-HQ-SML ("Kabwe Tailings Recovery Project") situated within Kabwe ML (the Acquisition).

 

The Acquisition also includes the remaining 15% of the shares, that Galileo currently does not hold in Enviro Zambia Ltd), the entity which indirectly owns 95% of the Star Zinc Project. The Kabwe Residual Rights include the Kashitu Zinc willemite exploration prospect ("Kashitu").  

 

Post Period Under Review

 

The Company progressed meeting the conditions precedent for the Acquisition. 

 

5   Shareholders are referred to the Company's RNS of 13 September 2018 for details of the Kashitu Agreement

 

Glenover Phosphate Project ("Glenover Project" or "Project") - South Africa

 

The Company owns a 36% interest (this will increase to 38% on grant of a Mining Right) in the Glenover Project, by way of its interest in Glenover Phosphate (Pty) Ltd ("Glenover"), the ultimate owner of the Project. The Company is negotiating a long-term off-take definitive supply agreement (DSA) with a major fertiliser producer (MFP) subject to certain product specifications. The tailings material will contain high values of strategic rare earths, which have been shown to be capable of producing a refinable rare-earth product for international refiners.

 

Operations

 

Period under review

 

Test work by MFP, a condition precedent (CP) in terms of the proposal agreement, to confirm suitability of the Phosphate Rock for its phosphate/fertilizer process progressed with positive results to date acceptable to MFP in terms of product specification outlined specified in the original proposal agreement for the supply of phosphate rock dated 12 June 2017.    

 

The negotiations continued positively with MFP for a Definitive Supply Agreement (DSA) for long-term (minimum 15 years) supply of Phosphate Rock from Glenover. The DSA specification for iron (Fe) content in the Phosphate Rock was lowered to <1% Fe from 5% Fe max.  Further MFP test work showed this specification to be achievable but it introduced a small increase over minimum specification in level of another impurity element, which the Company believes can be addressed

 

A final Condition Precedent to test a bulk 30-tonne sample of phosphate rock in MFP's process is pending MFP's evaluation of the logistical options for transport of the Phosphate Rock from Glenover.  

 

Glenover completed and submitted an Environmental Impact Assessment (EIA) and Environmental Management Programme (EMP) to the Department of Mineral Resources (DMR) in terms of its Mining Right Application (MRA) for the Project. The DMR accepted the EIA/EMP on 31 May 2018 and its adjudication is ongoing (see Post Period under Review).

 

Coincidently, with the EIA, the Company commenced with preparation of the Water Usage Licence  application (WULA).

 

Post period under review

 

Part B of the first phase of the 2-phase pilot plant flotation study ("the Study") - namely flotation water and ore variability tests on Glenover ore- was completed.  This testwork and Study is pursuant to the terms of the Heads of Agreement with a major fertilizer producer agreeing to undertake the Study in order ultimately to produce a bulk phosphate flotation concentrate for testing in its fertilizer processing plant.    

 

On 5 October 2018, the DMR requested, in respect of Glenover's MRA, a Record of Decision (ROD) from the Department of Water and Sanitation (DWS) in terms of Section 49 (2) of the National Environmental Management: Waste Act, 2008 for waste related activities which overlaps with some of the Section 21(g) water uses for which a Water Use License application was submitted in terms Section 40 of the National Water Act, 1998.

 

 

Concordia Copper Project ("Concordia") - South Africa

 

Period under review

 

The Company made no contribution to further exploration on Concordia and retains a 15% interest in the project.  

 

Ferber Property - USA

 

The renewal claims fees to August 2019 for Ferber were lodged with both the US Bureau of Land Management and Elko County, Nevada.  Whilst no exploration was carried out on the property during the period under review, the Company continued to investigate the options for potential JV/farm-out partners or its sale.

 

 

 

For further information, please contact:

 

Colin Bird, Chairman  & CEO

Tel +44 (0)20 7581 4477

Andrew Sarosi, Executive Director

www.galileoresources.com

 

Tel +44 (0) 1752 221937

Beaumont Cornish Limited

Nominated Advisor

Roland Cornish/James Biddle

 

Novum Securities Limited - Broker

Colin Rowbury/ Jon Belliss

 

 

 

Tel +44 (0)20 7628 3396

 

 

 

Tel +44 (0)20 7382 8416

 

 

 

 

Statement of Responsibility for the six months ended 30 September 2018

 

The directors are responsible for preparing the consolidated interim financial statements for the six months ended 30 September 2018 and they acknowledge, to the best of their knowledge and belief, that:

 

·   the consolidated interim financial statements for the six months ended 30 September 2018 have been prepared in accordance with IAS 34 - Interim Financial Reporting, as adopted by the EU;

·    based on the information and explanations given by management, the system of internal control provides reasonable assurance that the financial records may be relied on for the preparation of the consolidated interim financial statements. However, any system of internal financial control can provide only reasonable, and not absolute, assurance against material misstatement or loss;

·   the going concern basis has been adopted in preparing the consolidated interim financial statements and the directors of Galileo have no reason to believe that the Group will not be a going concern in the foreseeable future, based on forecasts and available cash resources;

·     these consolidated interim financial statements support the viability of the Company; and  

·   having reviewed the Group's financial position at the balance sheet date and for the period ending on the anniversary of the date of approval of these financial statements they are satisfied that the Group has, or has access to, adequate resources to continue in operational existence for the foreseeable future.

 

 

C Bird                                    Chairman and Chief Executive Officer

A Sarosi                                Finance & Corporate Development Director

J R Wollenberg                    Non-Executive director

C Molefe                              Non-Executive Director

 

19 December 2018

 

 

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

 

Six months

ended

30 September

2018

Six months

ended

30 September

2017

Year

ended

31 March

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

(Unaudited)

(Audited)

 

 

 

 

 

 

 

 

£

£

£

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Intangible assets

 

1 484 265

1 900 267

1 380 085

 

 

 

 

 

 

Investment in joint ventures

 

3 236 660

2 268 733

3 268 236

 

 

 

 

 

 

Loans to joint ventures and associates

 

416 663

656 779

284 396

 

 

 

 

 

 

Other financial assets

 

412 245

497 678

458 131

 

 

 

 

 

 

Non-current assets

 

5 549 833

5 323 457

5 390 848

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trade and other receivables

 

42 553

45 575

41 218

 

 

 

 

 

 

Cash and cash equivalents

 

394 276

1 126 124

539 301

 

 

 

 

 

 

Current assets

 

436 829

1 171 699

580 519

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Assets

 

5 986 662

6 495 156

5 971 367

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EQUITY AND LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Share capital and share premium

 

25 440 319

24 945 319

24 945 319

 

 

 

 

 

 

Reserves

 

478 203

544 438

729 772

 

 

 

 

 

 

Accumulated loss

 

(20 428 585)

(19 348 672)

(20 163 817)

 

 

 

 

 

 

Equity

 

5 489 937

6 141 085

5 511 274

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

Other financial liabilities

 

3 848

3 743

3 579

 

 

 

 

 

 

Non-current liabilities

 

3 848

3 743

3 579

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trade and other payables

 

492 877

350 328

456 514

 

 

 

 

 

 

Current liabilities

 

496 725

350 328

460 093

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Equity and liabilities

 

5 986 662

6 495 156

5 971 367

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The statement of financial position has been approved by the board of directors and are signed off on their

behalf by:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Andrew Sarosi

19 December 2018

Company number: 05679987

 

 

 

 

 

 

 

 

 

 

 

 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2018

 

 

 

Six months

ended

30 September

2018

 

Six months

ended

30 September

2017

 

Year

ended

31 March

2018

 

 

 

 

 

 

 

(Unaudited)

(Unaudited)

(Audited)

 

 

 

 

 

 

 

 

£

£

£

 

 

 

 

 

Revenue

 

-

-

-

 

 

 

 

 

Operating expenses

 

(255 677)

(347 190)

(624 631)

 

 

 

 

 

Operating loss

 

(255 677)

(347 190)

(624 631)

 

 

 

 

 

Investment revenue

 

81

34

180

 

 

 

 

 

Impairment losses recognised

 

-

-

(525 870)

 

 

 

 

 

Share of (loss)/profit from equity accounted investments

 

(9 172)

135 410

123 430

 

 

 

 

 

Loss for the period

 

(264 768)

(211 746)

(1 026 891)

 

 

 

 

 

Other comprehensive loss:

 

 

 

 

 

 

 

 

 

Exchange differences on translating foreign operations

 

(251 569)

(345 622)

(160 288)

 

 

 

 

 

Total comprehensive loss

 

(516 337)

(557 368)

(1 187 179)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total comprehensive loss attributable to:

 

 

 

 

 

 

 

 

 

Owners of the parent

 

(516 337)

(557 368)

(1 187 179)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares in issue

 

278 021 220

198 107 665

227 388 473

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic loss per share - pence

 

(0.1)

(0.1)

(0.45)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                                 

 

STATEMENT OF CHANGES IN EQUITY as at 30 September 2018

 

                          Share capital  Share premium

Total share

Foreign

Convertible

Share based

Total reserves

Accumulated

Total equity

 

capital

currency

instruments

payment

 

loss

 

Figures in Pound Sterling

 

translation

reserve

 

 

reserve

                        

reserve

 

 

 

                                                                                                                                                            

Balance at 1 April 2017

5 806 508

18 076 986

23 883 494

            (307 554)

1 047 821

149 793

890 060

(19 136 926)

5 636 628

Loss for the 6 months

-

-

-

-

-

-

-

(1 026 891)

(1 026 891)

Other comprehensive income

-

-

-

(160 288)

-

-

(160 288)

-

(345 622)

Total comprehensive Loss for the 6 months

-

-

-

(160 288)

-

-

(160 288)

(1 026 891)

(557 368)

Issue of shares

58 723

1 003 102

1 061 825

-    

-

-

-

-

1 061 825

Total contributions by and distributions to owners of company recognised directly in equity

 

58 723

 

1 003 102

 

1 061 825

 

-

 

-

 

-

 

-

 

-

 

1 061 825

Balance at 1 April 2018

5 865 231

19 080 088

24 945 319

(467 842)

1 047 821

149 793

729 772

(20 163 817)

6 141 085

Profit for the 6 months

                            -

-

-

                          -

                          -

 

-

                            -

(264 768)

(264 768)

Other comprehensive income

-

-

                                 -

(251 569)

                           -

-

(251 569)

-

(251 569)

Total comprehensive income for the 6 months

                         -

-

                               -

(251 569)

                          -

-

(251 569)

(264 768)

(516 337)

Issue of shares

                50 000

445 000

                495 000

-    

                           -

-

                        -

-

495 000

Total contributions by and distributions to owners of company recognised directly in equity

               

50 000

 

445 000

               

495 000

 

-

 

                             -

 

-

                       

-

-                        --

 

-

 

495 000

Balance at 30 September 2018

5 915 231

19 525 088

                25 440 319

(719 411)

1 047 821

149 793

478 203

(20 428 585)

5 489 937

 

 

 

 

 

 

 

 

 

 

 

                                 

 

CONSOLIDATED STATEMENT OF CASH FLOW FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2018

 

 

 

Six months

ended

30 September

2018

Six months

ended

30 September

2017

Year

ended

31 March

2018

 

 

 

 

 

 

 

(Unaudited)

(Unaudited)

(Audited)

 

 

 

 

 

 

 

£

£

£

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash used in operations

 

(329 016)

(366 269)

(598 676)

 

 

 

 

 

Interest income

 

81

34

180

 

 

 

 

 

Net cash from operating activities

 

(328 935)

(366 235)

(598 496)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Increase in intangible assets

 

-

(70 357)

(67 275)

 

 

 

 

 

Increase in investments in joint ventures

 

(224 709)

(456 962)

(797 338)

 

 

 

 

 

Loans advanced

 

                (132 267)

(152 970)

(170 236)

 

 

 

 

 

Sale of other financial assets

 

45 886

-

-

 

 

 

 

 

Net cash from investing activities

 

(311 090)

(680 289)

(1 034 849)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Proceeds on share issue

 

495 000

1 061 825

1 061 825

 

 

 

 

 

Net cash flows from financing activities

 

495 000

1 061 825

1 061 825

 

 

 

 

 

Total cash movement for the period

 

(145 025)

15 301

(571 520)

 

 

 

 

 

Cash at the beginning of the period

 

539 301

1 110 823

1 110 821

 

 

 

 

 

Total cash at end of the period

 

394 276

1 126 124

539 301

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Notes to the Financial Statements

 

1. Status of interim report

The Group unaudited condensed interim results for the 6 months ended 30 September 2018 have been prepared using the accounting policies applied by the Company in its 31 March 2018
annual report, which are in accordance with International Financial Reporting Standards (IFRS and IFRC interpretations) issued by the International Accounting Standards Board ("IASB") as adopted for use in the EU("IFRS"), including the SAICA financial reporting guides as issued by the Accounting Practices Committee, IAS 34 - Interim Financial Reporting, , the AIM rules of the London Stock Exchange and the Companies Act 2006 (UK). This condensed consolidated interim financial report does not include all notes of the type normally included in an annual financial report. Accordingly, this report is to be read in conjunction with the annual report for the year ended 31 March 2018 and any public announcements by Galileo Resources Plc. All monetary information is presented in the presentation currency of the Company being Great British Pound. The Group's principal accounting policies and assumptions have been applied consistently over the current and prior comparative financial period. The financial information for the year ended 31 March 2018 contained in this interim report does not constitute statutory accounts as defined by section 435 of the Companies Act 2006. A copy of the statutory accounts for that year has been delivered to the Registrar of Companies. The auditor's report on those accounts was unqualified and did not contain a statement under section 498(2)-(3) of the Companies Act 2006.

2. Basis of preparation

The consolidated annual financial statements incorporate the annual financial statements of the Company   and all entities, including special purpose entities, which are controlled by the Company. Control exists when the Company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. The results of subsidiaries are included in the consolidated annual financial statements from the effective date of acquisition to the effective date of disposal. Adjustments are made when necessary to the annual financial statements of subsidiaries to bring their accounting policies in line with those of the Group.

All intra-group transactions, balances, income and expenses are eliminated in full on consolidation. Non-controlling interests in the net assets of consolidated subsidiaries are identified and recognised separately from the Group's interest therein, and are recognised within equity. Losses of subsidiaries attributable to non-controlling interests are allocated to the non-controlling interest even if this results in a debit balance being recognised for non- controlling interest. Transactions which result in changes in ownership levels, where the Group has control of the subsidiary both before and after the transaction, are regarded as equity transactions and are recognised directly in the statement of changes in equity. The difference between the fair value of consideration paid or received and the movement in non-controlling interest for such transactions is recognised in equity attributable to the owners of the parent.

3. Segmental analysis

Business segments

The Group's business is the exploration and development of copper and phosphate in South Africa and gold-copper in USA.

An analysis of the loss on ordinary activities before taxation is given below:

 

 

 

 

 

 

 

Six months ended 30

September

2018

(Unaudited)

 

 

 

Six months ended 30

September

2017

(Unaudited)

 

 

 

Year

ended

31 March

2018

(Audited)

 

 

 

£

£

£

Loss on ordinary activities before taxation:

 

 

 

 

 

 

Rare earths, aggregates and iron ore and manganese

 

 

(51 248)

(238 083)

(857 969)

Gold, Copper

 

 

-

33 209

123 430

Corporate costs

 

 

(213 520)

(6 872)

(292 352)

 

 

 

(264 768)

(211 746)

(1 026 891)

4. Financial review

 

The Group reported a net loss of £264 768 (2017: £ 211 746) before and after taxation. Basic loss reported is 0.1 pence (2017: 0.1 pence) per share. Loss per share was based on a weighted average number of ordinary shares of 278 021 220 (2017: 198 107 665).

 

5. Investments in joint ventures

5.1 Glenover

 

The Company owns a 36% interest (this will increase to 38% on grant of a Mining Right) in the Glenover Project, by way of its interest in Glenover Phosphate (Pty) Ltd ("Glenover"), the ultimate owner of the Project. The Company is negotiating a long-term off-take definitive supply agreement with a major fertiliser producer subject to certain product specifications. The tailings material will contain high values of strategic rare earths, which have been shown to be capable of producing a refinable rare-earth product for international refiners.

Galileo's interest in the losses of the Glenover joint venture for the period under review amounted to £ 9 172 (2017: profit of £ 135 410).

 

5.2 Star Zinc

 

The Company acquired a 51% earn-in interest - through a joint venture with BMR in the Zambian Star Zinc project ("Star Zinc"), which contains a historically declared non-JORC hard rock resource of 275 166 tonnes grading 20.2% Zinc ("Zn") at a cut-off grade of 14% Zn. During March 2018 the Company increased its earn-in interest in Star Zinc to 85%, having completed a 26-diamond drill hole programme of 1 200 metres.

 

6. Availability of the Interim Results

Copies of the Interim Results for the six months ended 30 September 2018 will be posted on the Company's website and will be available to shareholders and members of the public in hard copy and free of charge, from the Company's London office at 1st Floor 7/8 Kendrick Mews
London SW7 3HG, United Kingdom
. Alternatively a downloadable version is available from Company's website: www.galileoresources.com.

 


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.
 
END
 
 
IR FEEFFSFASEFE

Galileo Resources PLC Timeline

© Proactive Investors 2019

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use