TIDMORE
RNS Number : 4840R
Orogen PLC
22 September 2017
Orogen plc
("Orogen" or the "Company")
Half Yearly Results
Financials
In the six months to 30 June 2017 the Company reported turnover
of GBPNIL (2016: GBPNIL), and a
loss before tax of GBP733K (2016: loss of GBP171K).
Strategy
On 21 March 2017, Orogen announced details of a proposed new
strategy and consequent restructuring of its operations. The Board
has completed a review of its operations and has concluded that it
is no longer in shareholders' interests for the Company to continue
to provide financial support for its mineral exploration
activities. It is therefore seeking to dispose of its interests in
its mineral exploration projects, and to conclude an acquisition
which would constitute a reverse takeover under the AIM Rules. The
Company has decided to cap further expenditure on its existing
mineral exploration projects at GBP75,000 and to put them on care
and maintenance programmes whilst buyers are sought for the
Company's interests in these assets.
As an initial step in the above restructuring, the Company
proposed to undertake a share consolidation and sub-division in
order to increase the price at which the Company's shares trade on
AIM and to enable the Company to raise funds through the issue of
new shares. As part of the proposals that were put to a shareholder
vote on 7 April 2017, up to GBP3.47m of new funds were to be
introduced to the Company to implement the new strategy and the
Company's name was to be changed to Orogen plc.
All resolutions put to shareholders were approved at a general
meeting on 7 April 2017. Accordingly, the capital reorganisation
and change of the Company name to Orogen plc were completed.
The decision to cease the Company's mineral exploration
activities represents a fundamental change of business under Rule
15 of the AIM Rules, a consequence of which is that the Company was
deemed to be a Rule 15 Cash Shell which means that the Company must
make an acquisition or acquisitions which constitute a reverse
takeover under Rule 14 of the AIM Rules within six months of the
general meeting, otherwise the trading of the Company's shares on
AIM will be suspended.
If the Company has not made an acquisition or acquisitions which
constitute a reverse takeover under Rule 14 of the AIM Rules within
six months of such suspension, the admission of the Company's
shares to trading on AIM will be cancelled.
On 26 May 2017 the Company's shares were suspended following an
announcement advising that Orogen had entered into heads of
agreement to acquire the entire issued share capital of Thread 35
Limited ("Thread"), a company that operates an e-commerce
womenswear brand under the name "Sosandar". Furthermore, on that
date the Company announced that it had made a secured loan of
GBP250,000 to Thread.
The Company has subsequently notified that it has loaned a
further GBP500,000 to Thread.
The Company is pleased to announce that it continues to
undertake due diligence on Thread and is hopeful that it will
shortly undertake a reverse transaction with Thread. A further
announcement will be made in due course.
ADAM REYNOLDS
Non-Executive Chairman
22 September 2017
Consolidated statement of profit or loss and other comprehensive
income
For the six months ended 30 June 2017
Unaudited Unaudited Audited
6 months 6 months 12 months
to to to
30 June 30 June 31 December
2017 2016 2016
Notes GBP'000 GBP'000 GBP'000
------------------------------------------ ------ ---------- ---------- -------------
General and administrative (637) (154) (334)
Impairment of exploration and evaluation
assets 4 (22) (9) (2,683)
Share based payments - (10) (20)
From discontinued operations (74) - (49)
Group operating loss (733) (173) (3,086)
Interest received - 2 3
------------------------------------------ ------ ---------- ---------- -------------
Loss on ordinary activities before
taxation (733) (171) (3,083)
Tax on loss on ordinary activities - - -
------------------------------------------ ------ ---------- ---------- -------------
Loss for the year from continuing
operations (733) (171) (3,083)
Attributable to:
Equity holders of the parent (733) (171) (2,609)
Non-controlling interests 0 - (474)
------------------------------------------ ------ ---------- ---------- -------------
Group loss for the period (733) (171) (3,083)
Exchange translation differences (1) - 66
------------------------------------------ ------ ---------- ---------- -------------
Total comprehensive loss for the
period (734) (171) (3,017)
Attributable to:
Owners of the parent (732) (171) (2,543)
Non-controlling interests (2) - (474)
------------------------------------------ ------ ---------- ---------- -------------
(734) (171) (3,017)
------------------------------------------ ------ ---------- ---------- -------------
Loss per share:
Loss per share - basic and diluted,
attributable to ordinary equity
holders of the parent (pence) 3 (0.544) (0.776) (10.3)
Consolidated statement of financial position
As at 30 June 2017
Unaudited Unaudited Audited
30 June 30 June 31 December
2017 2016 2016
Notes GBP'000 GBP'000 GBP'000
----------------------------------- ------ ---------- ---------- -------------
Assets
Non-current assets
Exploration and evaluation assets 4 - 1,670 -
Property, plant and equipment - 2 -
----------------------------------- ------ ---------- ---------- -------------
Total non-current assets - 1,672 -
----------------------------------- ------ ---------- ---------- -------------
Current assets
Trade and other receivables 423 27 46
Cash and cash equivalents 5 2,703 652 342
Total current assets 3,126 679 388
----------------------------------- ------ ---------- ---------- -------------
Total assets 3,126 2,351 388
----------------------------------- ------ ---------- ---------- -------------
Equity and liabilities
Equity
Share capital 6 4,884 4,418 4,651
Share premium 15,535 12,181 12,268
Other reserves 678 635 676
Retained earnings (18,103) (14,936) (17,367)
----------------------------------- ------ ---------- ---------- -------------
Equity attributable to owners of
the parent 2,994 2,298 228
Non-controlling interests 3 - 3
----------------------------------- ------ ---------- ---------- -------------
Total equity 2,997 2,298 231
----------------------------------- ------ ---------- ---------- -------------
Current liabilities
Trade and other payables 129 53 157
----------------------------------- ------ ---------- ---------- -------------
Total current liabilities 129 53 157
----------------------------------- ------ ---------- ---------- -------------
Total liabilities 129 53 157
----------------------------------- ------ ---------- ---------- -------------
Total equity and liabilities 3,126 2,351 388
----------------------------------- ------ ---------- ---------- -------------
Unaudited Unaudited Audited
6 months 6 months 12 months
to to to 31 December
30 June 30 June 2016
2016 2015
Notes GBP'000 GBP'000 GBP'000
------------------------------------------- ------ ---------- ---------- ----------------
Cash flows from operating activities
Group operating loss (733) (173) (3,086)
Share based payments - 10 20
(Increase)/decrease in trade and other
receivables (323) (5) 91
Decrease in trade and other payables (83) (10) (32)
Impairment of exploration and evaluation
assets 4 96 9 2,691
Profit on disposal of subsidiary - - (25)
Net cash flow from operating activities (1,043) (169) (341)
------------------------------------------- ------ ---------- ---------- ----------------
Cash flow from investing activities
Expenditure on exploration and evaluation
assets and project earn-ins 4 (96) (102) (568)
Outflow on disposal of subsidiary - - (4)
Inflow on acquisition of subsidiary - - 11
Interest received - 2 3
------------------------------------------- ------ ---------- ---------- ----------------
Net cash flow from investing activities (96) (100) (558)
------------------------------------------- ------ ---------- ---------- ----------------
Cash flow from financing activities
Net proceeds from issue of equity
instruments 6 3,500 - 320
------------------------------------------- ------ ---------- ---------- ----------------
Net cash flow from financing activities 3,500 - 320
------------------------------------------- ------ ---------- ---------- ----------------
Net change in cash and cash equivalents 2,361 (269) (579)
Net foreign exchange difference - - -
Cash and cash equivalents at beginning
of period 5 342 921 921
------------------------------------------- ------ ---------- ---------- ----------------
Cash and cash equivalents at end of
period 5 2,703 652 342
------------------------------------------- ------ ---------- ---------- ----------------
Foreign
Share currency
based Retained translation Non-controlling
Share Share payment earnings reserve Total interests Total
capital premium reserve equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------- ---------- ---------- ---------- ---------- ------------ -------- ----------------- ---------
Balance at 1
January
2016 4,418 12,181 597 (14,765) 28 2,459 - 2,459
Loss for the
period - - - (171) - (171) - (171)
Share based
payments - - 10 - - 10 - 10
Balance at 30
June 2016 4,418 12,181 607 (14,936) 28 2,298 - 2,298
-------------- ---------- ---------- ---------- ---------- ------------ -------- ----------------- ---------
Balance at 1
July
2016 4,418 12,181 607 (14,936) 28 2,298 - 2,298
Loss for the
period - - - (2,431) - (2,431) 3 (2,428)
Issue of
share
capital 233 87 - - - 320 - 320
Foreign
exchange
translation
reserve - - - - 38 38 - 38
Share based
payments - - 3 - - 3 - 3
Balance at 31
December
2016 4,651 12,268 610 (17,367) 66 228 3 231
-------------- ---------- ---------- ---------- ---------- ------------ -------- ----------------- ---------
Balance at 1
January
2017 4,651 12,268 610 (17,367) 66 228 3 231
Loss for the
period - - - (733) - (733) - (733)
Issue of
share
capital 233 3,267 - - - 3,500 - 3,500
Foreign
exchange
translation
reserve - (1) (1) - (1)
Balance at 30
June 2017 4,884 15,535 610 (18,100) 65 2,994 3 2,997
-------------- ---------- ---------- ---------- ---------- ------------ -------- ----------------- ---------
1 General information
Orogen Gold plc is a company incorporated and domiciled in
England and Wales. Details of the registered office, the officers
and advisers to the Company are presented on the Company
information page at the end of this report. The Company's offices
are in London and Dublin. The Company is quoted on the AIM market
of the London Stock Exchange (ticker: ORE.L).
The Mutsk gold exploration project in Armenia is the Company's
main operational project and the Silverton project in Nevada, USA
was added to the exploration portfolio in April 2016. The company
is now classified as an AIM rule 15 cash shell.
2 Basis of preparation
The financial information for the six months ended 30 June 2017
and 30 June 2016 is unaudited.
The Interim Report has been prepared using the same accounting
policies as were applied in the Group's audited financial
statements to 31 December 2016, which were prepared in accordance
with International Financial Reporting Standards ("IFRS"). As is
permitted by the AIM rules the Directors have not adopted the
requirements of IAS34 "Interim Financial Reporting" in preparing
the financial statements. Accordingly, the financial statements are
not in full compliance with IFRS and have neither been audited nor
reviewed pursuant to guidance issued by the Auditing Practices
Board. The Directors consider that the financial information
presented in this Interim Report represents fairly the financial
position, operations and cash flows for the period, in conformity
with IFRS. The Interim Report for the six months ended 30 June 2017
was approved by the Directors on 21 September 2017.
The financial information presented for the period ended 31
December 2016 is an extraction from the Group's audited accounts on
which the auditors issued an unqualified report. The information
presented does not constitute full accounts for that period.
3 Loss per share
Basic loss per share is calculated by dividing the loss
attributable to equity shareholders by the weighted average number
of ordinary shares in issue during the period:
Unaudited Unaudited Audited
30 June 30 June 31 December
2017 2016 2016
GBP'000 GBP'000 GBP'000
-------------------------------------------- ---------- ---------- -------------
Loss after tax attributable to equity
holders of the parent (732) (171) (2,609)
Weighted average number of ordinary shares
in issue (millions) 134,626 22,030 25,702
Basic and diluted loss per share (pence) (0.544) (0.776) (10.3)
-------------------------------------------- ---------- ---------- -------------
Basic and diluted earnings per share are the same, since where a
loss is incurred the effect of outstanding share options and
warrants is considered anti-dilutive and is ignored for the purpose
of the loss per share calculation. The share options outstanding as
at 30 June 2017 totalled 380,000,000 (30 June 2016: 380,000,000, 31
December 2016: 380,000,000) and are potentially dilutive.
4 Exploration and evaluation assets
Armenia Silverton Serbia Total
GBP'000 GBP'000 GBP'000 GBP'000
--------------------------------- ---------- ------------ --------- --------
Cost
At 1 January 2016 1,577 - 5,554 7,131
Additions 87 6 9 102
--------------------------------- ---------- ------------ --------- --------
At 30 June 2016 1,664 6 5,563 7,233
--------------------------------- ---------- ------------ --------- --------
Impairment
At 1 January 2016 - - 5,554 5,554
Impairment charge - - 9 9
--------------------------------- ---------- ------------ --------- --------
At 30 June 2016 - - 5,563 5,563
--------------------------------- ---------- ------------ --------- --------
Carrying value 30 June 2016 1,664 6 - 1,670
--------------------------------- ---------- ------------ --------- --------
Cost
At 1 July 2016 1,664 6 5,563 7,233
Additions 851 162 - 1,013
Discontinued operations - - (5,563) (5,563)
--------------------------------- ---------- ------------ --------- --------
At 31 December 2016 2,515 168 - 2,683
--------------------------------- ---------- ------------ --------- --------
Impairment
At 1 July 2016 - - 5,563 5,563
Impairment charge 2,515 168 - 2,683
Discontinued operations - - (5,563) (5,563)
--------------------------------- ---------- ------------ --------- --------
At 31 December 2016 2,515 168 - 2,683
--------------------------------- ---------- ------------ --------- --------
Carrying value 31 December 2016 - - - -
--------------------------------- ---------- ------------ --------- --------
Cost
At 1 January 2017 2,515 168 - 2,683
Additions - - 96 96
--------------------------------- ---------- ------------ --------- --------
At 30 June 2017 2,515 168 96 2,779
--------------------------------- ---------- ------------ --------- --------
Impairment
At 1 January 2017 2,515 168 - 2,683
Impairment charge - - 96 96
--------------------------------- ---------- ------------ --------- --------
At 30 June 2017 2,515 168 96 2,779
--------------------------------- ---------- ------------ --------- --------
Carrying value 30 June 2017 - - - -
--------------------------------- ---------- ------------ --------- --------
5 Cash and cash equivalents
Unaudited Unaudited Audited
30 June 30 June 31 December
2016 2016 2016
GBP'000 GBP'000 GBP'000
--------------------------- ---------- ---------- -------------
Cash at bank 2,703 652 342
--------------------------- ---------- ---------- -------------
Cash and cash equivalents 2,703 652 342
--------------------------- ---------- ---------- -------------
6 Share capital
Details of ordinary and deferred shares issued are in the table
below:
Ordinary Shares Deferred Shares Deferred Shares
(GBP0.01) (GBP0.9) (GBP0.01)
------------ ----------------- ------------------------------ --------------------- ------------------------
Issue Price Issue Number Issue
Date Number GBP Number Price of shares Price
Details of shares of shares GBP GBP
------------ ----------------- ---------------- ------------ ------------ ------- --------------- -------
At 1 Jan
2017 Opening Balance 7,841,002,670 429,643,035
------------ ----------------- ---------------- ------------ ------------ ------- --------------- -------
7 Apr 2017 Share placing 80 0.0001
7 Apr 2017 Consolidation (7,809,638,739)
7 Apr 2017 Subdivision 7,809,638,739 0.0001
10 Apr
2017 Share placing 231,364,011 0.015
03 May
2017 Share placing 2,000,000 0.015
At 30 June
2017 Closing Balance 264,728,022 429,643,035 7,809,638,739
------------ ----------------- ---------------- ------------ ------------ ------- --------------- -------
7 Subsequent events
On 6 July 2017, Orogen announced a further drawdown of Loan to
Thread 35 Limited of GBP250,000. This bring the total outstanding
loan amount to GBP500,000.
8 Copy of the Interim Report
Copies of the Interim Report are available to download from the
Company's website at www.orogen.co.uk.
Contacts:-
Orogen plc C/o Walbrook
Adam Reynolds, Non-executive Chairman
Cairn Financial Advisers LLP (Nominated
Adviser)
Liam Murray / Sandy Jamieson +44 (0) 20 7213 0880
Turner Pope Investments (TPI) Ltd (Broker)
Ben Turner / James Pope +44 (0) 20 3621 4120
Walbrook (Public Relations and Investor
Relations)
Paul Cornelius / Gary Middleton +44 (0) 20 7933 8780
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR BSGDCCUDBGRB
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