TIDMALBA
RNS Number : 2123P
Alba Mineral Resources PLC
30 August 2017
ALBA MINERAL RESOURCES PLC
HALF-YEARLY REPORT
CHAIRMAN'S STATEMENT
The Board of Alba Mineral Resources plc (the "Company" or "Alba"
or collectively with its Subsidiary Companies, the "Group") is
pleased to report the Company's interim results for the six months
ended 31 May 2017. They incorporate the results of its subsidiary
companies Aurum Mineral Resources Limited ("AMR"), Mauritania
Ventures Limited ("MVL"), Obsidian Mining Limited ("OML"), Alba
Mineral Resources Sweden AB ("Alba Sweden", dissolved 18 January
2017) and White Eagle Resources Limited ("WERL", incorporated 9 May
2017) (collectively the "Subsidiary Companies").
INTRODUCTION
Alba is a mineral exploration company with a diverse portfolio
of assets. Alba holds interests in the UK onshore oil & gas
exploration and production sector, as well as mineral exploration
assets in Greenland (graphite, gold and ilmenite), Ireland (base
metals) and Mauritania (uranium). The Company's overall corporate
strategy is to identify and acquire natural resources projects it
believes to have significant potential for advancement through the
exploration and development phases with a view to ultimate
production. The Company's focus is on securing interests in
historic production assets (such as at Brockham and Amitsoq) or
otherwise identifying projects that have significant exploration
potential (such as at Horse Hill and Thule Black Sands).
RESULTS FOR THE PERIOD
The Group made a loss attributable to equity holders of the
parent for the period, after taxation, of GBP334,972. The basic and
diluted loss per share was 0.02p.
REVIEW OF ACTIVITIES
Horse Hill (Oil & Gas, United Kingdom)
Alba owns a 15 per cent shareholding in Horse Hill Developments
Limited ("HHDL"). HHDL is a special purpose company that owns a 65
per cent participating interest and operatorship of Petroleum and
Exploration Development Licence (PEDL) 137 and the adjacent Licence
PEDL246 on the northern side of the Weald Basin near Gatwick
airport. Alba therefore has an effective interest of 9.75 per cent
in the Horse Hill licences. The remaining 35 per cent participating
interests in the PEDL137 and PEDL246 licences are held by US-based
Tellurian Inc. The Horse Hill-1 well ("HH-1") is located within
onshore exploration licence PEDL137.
During the reporting period it was announced that Xodus oil
& gas consultants had upgraded the Portland sandstone P50 Oil
in Place (OIP) to 32 million barrels, a 53 per cent increase on
previous calculations. The Company also announced that it had been
informed by the Operator, HHDL, that the Oil & Gas Authority
("OGA") had consented to extend the PEDL137 and PEDL246 licences
until 2021. Subsequent to the reporting period, the Company was
informed by HHDL that it understood that its planning application
for long term production testing and further appraisal drilling
would be determined at a scheduled Surrey County Council planning
meeting by September 2017.
Amitsoq (Graphite, Ni-PGEs, Gold, Southern Greenland)
In February 2017 Alba completed the acquisition of a further 41
per cent interest in the Amitsoq project thereby becoming the owner
of 90 per cent of the project.
Preliminary results from the airborne electro-magnetic and
magnetic survey at Amitsoq were announced during the reporting
period. Several new faults and numerous EM anomalies associated
with potential graphite horizons were identified with a total
strike length of 12.05 kilometres.
The Company also announced that it had completed the preliminary
evaluation of the metallurgical testing at Amitsoq. The initial
results were highly encouraging and provide confidence with regard
to the Company's objective of re-opening the graphite mine at
Amitsoq. The head grade of +25 per cent graphite confirms Amitsoq
ore to be amongst the highest grade of any graphite project in the
world. Simple processing was able to achieve +99 per cent recovery
of the graphite from the gangue material, with the bulk of the
flake graphite recovered being in the +150<MU> category
(medium flake), essential for supply to the lithium-ion battery
market, and the premium value +300<MU> jumbo to super jumbo
category.
Brockham (Oil & Gas, United Kingdom)
During the reporting period the Company completed the
acquisition of a 5 per cent participating interest in Production
Licence (PL) 235 comprising the Brockham Oil Field. Alba therefore
became a licensee under PL 235.
In March 2017 Alba was advised by the Operator, Angus Energy,
that, following extensive analysis of the BR-X4Z sidetrack well,
the Operator's intention is to bring the Kimmeridge into production
at the existing Brockham production facility as soon as the
necessary OGA approval is in place. The Operator confirmed that the
preliminary results from the Brockham X4Z well confirm very similar
thickness of reservoir and properties to those reported at Horse
Hill.
In May 2017 the Operator announced that it had submitted the
required Field Development Plan (FDP) Addendum to commence
production from the Kimmeridge layers at PL 235.
Limerick (Base Metals, Ireland)
The Limerick Project, comprising an exploration licence in the
Limerick Basin in the Republic of Ireland which is 100 per cent
owned by the Group, is highly prospective for zinc, lead, gold and
silver and is only 10 km away from and part of the same target unit
as the Pallas Green zinc discovery.
During the reporting period Alba announced the results of a
microgravity study and portable XRF shallow soil sampling programme
at the project, as well as laboratory assay results from select
soil samples taken during the programme. The most pronounced
anomalism discovered was for copper-silver-arsenic (Cu-Ag-As),
similar to that found at the former Gortdrum copper-silver (Cu-Ag)
mine 25 km due east.
El-Mreiti (Uranium, Mauritania)
An application has been submitted to the Mauritanian Authorities
to take out a new licence over a reduced area within the original
licence area, which includes the centre of the previously
discovered and announced high-tenor uranium anomalies.
Other Development Projects
Alba continues to review other project and investment
opportunities with the potential to enhance the value of Company's
portfolio of assets.
Corporate
On 13 January 2017 the Company announced that it had raised
GBP153,431 from the exercise of existing share warrants. The
Company also announced that it had introduced a new Enterprise
Management Incentive plan ("EMI scheme") to strengthen its ability
to attract and retain executives and staff through ensuring
participants receive competitive incentives which align their
interests with those of the Company's shareholders. Following
adoption of the EMI scheme, the remuneration committee awarded to
George Frangeskides (Executive Chairman) a total of 60 million
share options vesting in tranches over the 18 month period
following the date of grant (with an exercise price of 0.4p and a
10 year expiration date). 15 million share warrants were also
awarded to Michael Nott (CEO) vesting immediately at an exercise
price of 0.4p and an expiration date of 27 March 2021.
On 30 May 2017, the Company announced that with effect from 1
June 2017 Michael Nott was stepping down as the Company's CEO but
would remain on the Board as a non-executive director.
Post Period End
In July 2017 the Company announced that the Alba field team had
discovered significant new graphite zones in the southern part of
Amitsoq island and on the mainland portion of the licence.
In August 2017 the Company announced that it had been granted an
exclusive mineral exploration licence over a significant proportion
of the coastline in the Thule black sand province in north-west
Greenland. The licence area is prospective for heavy mineral sands,
especially ilmenite.
On 25 August 2017 the Company announced that it had raised
GBP1,065,000 before expenses in a share placing at 0.4p per
ordinary share.
Outlook
Alba's management team has spent the past number of years
identifying and securing interests in a suite of assets with
significant value-enhancing potential for the Company's
shareholders. Whether this is our venture into the UK onshore oil
& gas sector with our investments in Brockham and Horse Hill,
or our move to secure majority ownership of the high grade and
previously producing Amitsoq graphite project in southern
Greenland, and most recently the award to Alba of an exclusive
exploration licence over a significant portion of the highly
prospective Thule ilmenite province in north-west Greenland, Alba's
current portfolio of assets places the Company in a strong position
as we move into the remainder of 2017.
George Frangeskides
30 August 2017
Executive Chairman
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
For further information please visit the Company's website,
www.albamineralresources.com, or contact:
Alba Mineral Resources plc George Frangeskides, Chairman Tel: +44 (0) 20 7264 4366
Cairn Financial Advisers LLP (Nominated Advisers) James Caithie/Liam Murray Tel: +44 (0) 20 7213 0880
UNAUDITED CONSOLIDATED INCOME STATEMENT
FOR THE SIX MONTHS ENDED 31 MAY 2017
Unaudited Unaudited Audited
6 months 6 months Year
ended ended ended
31 May 31 May 30 Nov
2017 2016 2016
Revenue - - -
Cost of sales - - -
Gross loss - - -
--------------------------- ---------- ---------- ----------
Other administrative
expenses (335,320) (200,118) (425,562)
Exceptional items - - -
--------------------------- ---------- ---------- ----------
Administrative expenses (335,320) (200,118) (425,562)
---------- ---------- ----------
Operating (loss)/profit (335,320) (200,118) (425,562)
Finance costs - - -
---------- ---------- ----------
(Loss)/profit before
tax (335,320) (200,118) (425,562)
---------- ---------- ----------
Taxation - - -
---------- ---------- ----------
(Loss)/profit for the
year (335,320) (200,118) (425,562)
---------- ---------- ----------
Attributable to:
Equity holders of the
parent (334,972) (198,803) (425,390)
Non-controlling interests (348) (1,315) (172)
---------- ---------- ----------
(335,320) (200,118) (425,562)
---------- ---------- ----------
Loss per ordinary share
Basic and diluted (0.02) (0.03) (0.03)
pence pence pence
UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 MAY 2017
Unaudited Unaudited Audited
6 months 6 months Year
ended ended ended
31 May 31 May 30 Nov
2017 2016 2016
Non-current assets
Intangible fixed assets 1,447,780 668,330 1,383,895
Investments 2,288,320 2,114,222 2,286,315
Available for sale assets 56,285 - 56,285
Total non-current assets 3,792,385 2,782,552 3,726,495
------------ ------------ ------------
Current assets
Trade and other receivables 36,371 108,962 15,261
Cash and cash equivalents 350,280 336,050 668,340
------------ ------------ ------------
Total current assets 386,651 445,012 683,601
------------ ------------ ------------
Current liabilities
Trade and other payables (153,934) (121,503) (377,212)
Financial liabilities (253,074) (254,074) (253,073)
------------ ------------ ------------
Total current liabilities (407,008) (375,577) (630,285)
------------ ------------ ------------
Net assets 3,772,028 2,851,987 3,779,811
------------ ------------ ------------
Capital and reserves
Called up share capital 2,720,503 2,124,421 2,654,703
Share premium account 3,610,303 2,953,786 3,472,671
Warrant reserve 246,050 446,291 546,098
Retained losses (3,224,727) (3,082,659) (3,309,246)
Merger reserve 200,000 200,000 200,000
Foreign currency reserve 193,821 184,867 189,159
------------ ------------ ------------
Equity attributable to
equity holders of the
parent 3,745,950 2,826,706 3,753,385
Non-controlling interests 26,078 25,281 26,426
------------ ------------ ------------
Total equity 3,772,028 2,851,987 3,779,811
------------ ------------ ------------
UNAUDITED CONSOLIDATED CASH FLOW STATEMENT
FOR THE SIX MONTHS ENDED 31 MAY 2017
Unaudited Unaudited Audited
6 months 6 months Year
ended ended ended
31 May 31 May 30 Nov
2017 2016 2016
Cash flows from operating
activities
Operating loss (335,320) (200,118) (425,562)
Non-cash settlement of fees
for professional services - - 60,000
Share option charge 119,443 - 99,807
Foreign exchange revaluation
adjustment 4,663 896 5,190
(Decrease)/ increase
in creditors (42,378) 41,503 75,312
(Increase)/ decrease
in debtors (21,110) (12,019) 81,682
---------- ---------- ----------
Net cash used in operating
activities (274,702) (169,738) (103,571)
---------- ---------- ----------
Cash flows from investing
activities
Payments for deferred
exploration expenditure (169,784) (5,456) (380,121)
Payments for available
for sale assets - - (56,285)
Investments (27,005) (276,000) (433,494)
---------- ---------- ----------
Net cash used in investing
activities (196,789) (281,456) (869,900)
---------- ---------- ----------
Cash flows from financing
activities
Proceeds from issue of
shares and warrants 153,431 525,000 1,425,001
Cost of issue - (26,250) (71,684)
---------- ---------- ----------
Net cash generated from
financing activities 153,431 498,750 1,353,317
---------- ---------- ----------
Net increase in cash
and cash equivalents (318,060) 47,556 379,846
Cash and cash equivalents
at beginning of period 668,340 288,494 288,494
---------- ---------- ----------
Cash and cash equivalents
at end of year 350,280 336,050 668,340
---------- ---------- ----------
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 European Union. The financial
information set out in this half-yearly report does not constitute
statutory accounts as defined in Section 434 of the Companies Act
2006. The same accounting policies, presentation and methods of
computation are followed in this interim condensed consolidated
report as were applied in the Group's annual financial statements
for the year ended 30 November 2016. The auditor's report on those
financial statements was unqualified and did not contain any
statements under section 498(2) or section 498(3) of the Companies
Act 2006. The auditor's report for the year ended 30 November 2016
did include emphasis of matter paragraphs relating to the
uncertainty as to whether the Group can raise sufficient funds to
continue to develop the Group's exploration assets.
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 GBP334,972 (May 2016:
GBP198,803; November 2016: GBP425,390) by the weighted average
number of shares of 1,863,339,824 (May 2016: 742,971,557; November
2016: 1,373,008,189) in issue during the period. The diluted loss
per share calculation is identical to that used for basic loss per
share as the exercise of warrants would have the effect of reducing
the loss per ordinary share and therefore is not dilutive under the
terms of Financial Reporting Standard 22 "Earnings Per Share".
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR OKCDKQBKDDFB
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