TIDMDCP
RNS Number : 9232M
Diamondcorp Plc
02 September 2013
DiamondCorp plc
AIM share code: DCP
JSE share code: DMC
ISIN: GB00B183ZC46
(Incorporated in England and Wales)
(Registration number 05400982)
(SA company registration number 2007/031444/10)
('DiamondCorp' or 'the Company' or 'the Group')
Interim Results (unaudited) for the six month period ended 30
June 2013
DiamondCorp plc, a southern Africa focussed diamond mine
development and exploration company, releases its unaudited interim
results for the six month period ended 30 June 2013.
HIGHLIGHTS
-- On 7 January 2013, DiamondCorp finalised a R320 million
(GBP21.23 million at June 30 exchange rate) finance package for the
47 level block cave development at the Lace Mine when it entered
into a term loan agreement with Laurelton Diamonds, Inc., a wholly
owned subsidiary of Tiffany & Co.('Tiffany Loan') for $6
million (GBP3.94 million). On 10 January 2013 and 10 April 2013,
the Tiffany Loan was drawn down in two equal tranches.
-- From the proceeds of the Tiffany Loan and the R59.7 million
convertible bond issue completed in December 2012, R100 million
(GBP6.64 million) was advanced to the Company's 74%-owned operating
subsidiary, Lace Diamond Mines (Pty) Limited ('LDM'). These funds
allowed LDM to meet the initial drawdown conditions of a R220
million project loan agreement with the Industrial Development
Corporation of South Africa ('IDC Loan') signed in September
2012.
-- After the period, the first R30 million (GBP1.99 million)
tranche of the IDC loan was drawn down.
-- Underground mine development commenced at Lace in the first
quarter and remains on schedule and within budget for commencement
of production in the first half of 2015.
-- The 1.2 million tonnes per annum Lace diamond recovery plant
was refurbished during the period and was successfully commissioned
post the period end. Re-treatment of more than 3 million tonnes of
tailings that remain on site has recommenced. The preparation of
the marketing and sale of the first 5,000 carats of tailings
diamonds is underway.
-- A number of corporate events were finalised after the period
end, including the appointment of Hulme Scholes as an independent
Non-Executive Director; the relocation of the finance function from
London to the Lace Mine; additional corporate overhead cost
efficiencies; and a reorganisation of the Company's share capital
to a par value of 0.1 pence each.
-- The net loss for the six months ended 30 June 2013 was
GBP2,198,339 (R33,125,232) v. 30 June 2012 GBP1,556,701
(R23,456,838).
Commenting on the results, DiamondCorp CEO Paul Loudon said:
'The period under review saw us complete the finance package and
commence development of the underground mine at Lace. The mine is
expected to produce up to 500,000 carats of diamonds per annum for
over 25 years commencing in the first half of 2015, and heralds the
transition of DiamondCorp from explorer to diamond producer. The
period also marks the commencement of a long-term association with
Tiffany which allows the prestigious jewellery retailer access to a
new supply of diamonds that meets its quality standards and allows
for increased traceability from source to end-user.'
2 September 2013
London
CONSOLIDATED INCOME STATEMENT
Six months ended 30 June 2013
Six months Six months
ended ended
30 June 30 June
2013 2012
GBP GBP
Administrative expenses (1,484,956) (1,192,493)
Depreciation and amortisation (202,552) (387,165)
expense
OPERATING LOSS (1,687,508) (1,579,658)
Investment revenues - interest 29,128 22,957
on bank deposits
Interest expense (487,459) -
Finance costs (52,500) -
LOSS BEFORE TAX (2,198,339) (1,556,701)
Tax - -
LOSS FOR THE FINANCIAL PERIOD (2,198,339) (1,556,701)
ATTRIBUTABLE TO:
EQUITY HOLDERS OF THE PARENT (1,884,889) (1,325,656)
NON CONTROLLING INTEREST (313,450) (231,045)
(2,198,339) (1,556,701)
BASIC & DILUTED LOSS PER SHARE GBP0.008 GBP0.006
R0.121 R0.090
HEADLINE LOSS PER SHARE GBP0.008 GBP0.006
R0.121 R0.090
All of the activities of the Group are classed as
continuing.
STATEMENT OF CHANGES IN EQUITY
Six months Six months
ended ended
30 June 30 June
2013 2012
GBP GBP
Opening balance 13,072,716 16,601,837
Loss for the financial period
Attributable to equity holders (1,884,889) (1,325,656)
of the parent
Attributable to non-controlling (371,898) (231,045)
interest
New equity share capital 180,000 -
subscribed
Premium on new equity share 90,000 -
capital subscribed
Translation reserve (962,564) (539,168)
Value attributed to options granted 72,400 -
Closing balance 10,195,765 14,505,968
CONSOLIDATED BALANCE SHEET
30 June 31 December
2013 2012
GBP GBP
NON-CURRENT ASSETS
Goodwill 4,606,026 4,606,026
Property, plant and equipment 10,167,428 8,776,273
14,773,454 13,382,299
CURRENT ASSETS
Inventories 276,809 297,474
Other receivables 592,582 195,028
Cash and cash equivalents 3,004,318 4,319,776
3,873,709 4,812,278
TOTAL ASSETS 18,647,163 18,194,577
CURRENT LIABILITIES
Other payables (302,038) (765,501)
Other current borrowings - (68,485)
SA Bond Interest Accrual (16,358) -
Convertible bond notes payable (2,576,792) (2,642,739)
Provisions (109,454) (119,745)
Derivative financial instruments (1,438,791) (1,525,391)
(4,443,433) (5,121,861)
NON-CURRENT LIABILITIES
Long term loan (4,007,965) -
NET ASSETS 10,195,765 13,072,716
EQUITY
Share capital 8,305,184 8,125,184
Share premium 26,885,360 26,795,360
Warrant reserve 92,000 92,000
Share option reserve 511,636 439,236
Translation reserve (1,712,714) (750,150)
Retained losses (22,409,549) (20,524,660)
EQUITY ATTRIBUTABLE TO EQUITY 11,671,917 14,176,970
HOLDERS OF THE PARENT
NON CONTROLLING INTEREST (1,476,152) (1,104,254)
TOTAL EQUITY 10,195,765 13,072,716
CONSOLIDATED CASH FLOW STATEMENT
Six months Six months
ended ended
30 June 30 June
2013 2012
GBP GBP
Operating loss for the period (1,687,508) (1,579,658)
Depreciation and amortisation 202,552 387,165
Other non-cash charges - 5,051
Effect of foreign exchange translation (224,791) -
Non-cash bonus payments (in shares and
options) 289,900 -
Capitalised interest 115,280 -
Increase in receivables (397,554) (38,888)
(Increase) / Decrease in inventories 20,665 (172,467)
(Decrease) / Increase in other payables (678,428) (146,332)
NET CASH USED IN OPERATING (2,359,884) (1,545,129)
ACTIVITIES
INVESTING ACTIVITIES
Purchase of intangible assets - (454,744)
Purchase of property, plant and (2,594,366) (81,443)
equipment
Interest received 29,128 22,957
NET CASH USED IN INVESTING (2,565,238) (513,230)
ACTIVITIES
FINANCING ACTIVITIES
Proceeds on receipt of long 3,830,427 -
term loan
NET CASH FROM FINANCING ACTIVITIES 3,830,427 -
NET (DECREASE) / INCREASE IN CASH (1,094,696) (2,058,359)
AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS AT 4,319,776 2,632,760
BEGINNING OF PERIOD
Effect of foreign exchange (220,762) (277,826)
rate changes
CASH AND CASH EQUIVALENTS AT 3,004,318 296,575
END OF PERIOD
NOTES TO THE FINANCIAL STATEMENTS
Six months ended 30 June 2013
1. ACCOUNTING POLICIES
These interim financial statements have been prepared using
accounting policies consistent with International Financial
Reporting Standards (IFRSs). The same accounting policies,
presentation and methods of computation are followed in the
condensed interim financial information as applied in the Group's
latest annual audited financial statements. The financial figures
included in this half-yearly report have been computed in
accordance with IFRSs applicable to interim periods.
These interim financial statements were approved by the Board on
30 August 2013 and do not constitute statutory financial statements
within the meaning of Section 435 of the Companies Act 2006. The
results for the year ended 31 December 2012 have been extracted
from the statutory financial statements of DiamondCorp plc.
A copy of the statutory accounts for the year ended 31 December
2012 has been delivered to the Registrar of Companies. The
auditors' report on those accounts was not qualified and did not
contain statements under Section 498 (2) or (3) of the Companies
Act 2006; however the auditor's report did contain an emphasis of
matter in respect of the material uncertainty around the company's
ability to continue as a going concern.
These interim financial statements have been prepared using the
accounting policies set out in the Group's 2012 statutory
accounts.
Results for the six-month period ended 30 June 2013 and 30 June
2012 have not been audited.
The comparative information presented in the income statement
has been prepared for the period 1 January 2012 - 30 June 2012.
This has been performed in order to comply with the AIM rules and
is presented solely for this purpose.
2. LOSS PER SHARE
IAS 33 "Earnings per share" requires presentation of diluted
earnings per share when a company could be called upon to issue
shares that would decrease net profit or increase net loss per
share. For a loss-making company with outstanding share options,
net loss per share would only be decreased by the exercise of
out-of-money options. Since it seems inappropriate to assume that
option holders would exercise out-of-money options, no adjustment
has been made to basic loss per share for out-of-money share
options.
The calculation of basic and diluted loss per ordinary share is
based on the loss attributable to equity holders of the parent of
GBP1,839,889 for the six months ended 30 June 2013 (30 June 2012:
GBP1,325,656) and on 276,839,478 ordinary shares (30 June 2012:
242,28,048) being the weighted-average number of ordinary shares in
issue.
The Group presents and alternative measure of loss per share
after excluding all capital gains and losses from the loss
attributable to ordinary shareholders ("Headline earnings /
(loss)"). The impact of this is as follows:
2013 2012
Basic loss per share GBP0.008 GBP0.006
R0.121 R0.090
Headline loss per share GBP0.008 GBP0.006
R0.121 R0.090
3. SHARE CAPITAL
30 June 31 December
2013 2012
Called up, allotted and fully paid
No. GBP No. GBP
Ordinary shares
of 3 pence each 276,839,478 8,305,184 270,839,478 8,125,184
R R
125,145,004 122,432,710
In January 2013, 4,500,000 ordinary shares of 5 pence each were
issued to a director and certain employees for successful
completion of the project financing to fund the development of Lace
mine.
In April 2013, 1,500,000 ordinary shares of 3.5 pence each were
issued to a financial advisor in respect of a success fee for
introducing Laurelton Diamonds, Inc., a wholly owned subsidiary of
Tiffany & Co.
4. EVENTS AFTER THE REPORTING PERIOD
A special resolution was passed at the AGM held on 02 July 2013
giving the Group the option of settling the convertible bond debt
through the issue of a fixed amount of shares.
Also approved at the meeting held on 02 July resolutions were
passed by the majority of votes cast, approving the reorganisation
of the Company's share capital.
Pursuant to the share capital reorganisation, dealings in the
Company's existing ordinary shares with par value of 3 pence each
ceased at the close of business on 2 July 2013 and dealings in the
new ordinary shares with par value of 0.1 pence commenced on both
AIM and AltX on 3 July 2013.
SHARE CAPITAL AS AT 02 JULY 2013
02 July 30 June
2013 2013
Called up, allotted and fully paid
No. GBP No. GBP
Ordinary shares
of 3 pence each - - 276,839,478 8,305,184
02 July 30 June
2013 2013
New Ordinary shares
of 0.1 pence each 276,839,478 276,840 -
Deferred Ordinary shares
of 2.90 pence each 276,839,478 8,028,344 -
- Existing ordinary shares were sub-divided into one new
ordinary share of 0.1 pence each (New Ordinary Share") and one
deferred ordinary share of 2.90 pence each (Deferred Ordinary
Share).
-The New Ordinary Shares continue to carry the same rights and
benefits as those attached to the Company's existing ordinary
shares (save for the reduction in nominal value). The number of New
Ordinary Shares in issue following the Share Capital Reorganisation
is identical to the number of existing ordinary shares in issue
immediately prior to the Share Capital Reorganisation.
-The Deferred Ordinary Shares do not entitle the holders to (a)
receive notice of or attend and vote at any general meeting of the
Company; (b) to receive any dividend or other distribution; or (c)
to participate in any return on capital on winding up, other than
the nominal amount paid on such shares following a substantial
distribution of ordinary shares in the Company.
-The Deferred Ordinary Shares are effectively valueless,
non-transferable and have no effect on the economic interest of the
Shareholders.
Contact details:
DiamondCorp plc
Paul Loudon, Chief Executive
Tel: +27 56 212 2930
+44 20 3151 0970
UK Broker & Nomad
Panmure Gordon (UK) Limited
Dominic Morley/Adam James/Hannah Woodley
Tel: +44 20 7886 2500
JSE Designated Advisor
Sasfin Capital (a division of Sasfin Bank Limited)
Kim Dawson
Tel: +27 118097794
This information is provided by RNS
The company news service from the London Stock Exchange
END
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