TIDMDCP
RNS Number : 1478Q
Diamondcorp Plc
28 August 2014
DiamondCorp plc
JSE share code: DMC
AIM share code: DCP
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 2014
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 2014.
HIGHLIGHTS
-- Capital expenditure on underground development and mine
infrastructure, including conveyor belts, at the Lace project
totalled R76.8 million (GBP4.3 million) for the six months to 30
June 2014.
-- During the period, a revised development budget and schedule
was adopted which will allow underground kimberlite mining to
commence from the high-grade Upper K4 ("UK4") Block in the first
half of 2015, six months ahead of schedule.
-- The UK4 development will be funded from existing project finance facilities.
-- During the period the Lace processing plant operated on
tailings primarily so that it could be maintained and optimised in
readiness for kimberlite processing, including the UK4 bulk test.
Accordingly, income from diamond sales for the period were
capitalised as a credit to mine development.
-- Diamond recoveries from tailings for the period totalled
13,055 carats at an average recovered grade of 5.78 carats per
hundred tonnes ("cpht"), against a budget of 5.00 cpht.
-- Lace diamond sales for the period totalled 14,583 carats.
-- Diamond sales before selling costs were US$907,308
(GBP549,884), representing an average of US$62 per carat.
-- The most valuable diamond sold was a 5.6 carat sawable which achieved $3,250 per carat.
-- Additional income of US$29,902 (GBP18,122) was generated from
diamond beneficiation and fine diamond sales.
-- After the period end, a 15.2 carat white octahedral diamond
was recovered, the largest gem found since tailings reprocessing
began in 2008.
-- An equity fund raising was completed in April 2014, raising
gross proceeds of GBP2.1 million to cover corporate overheads until
such time as the Lace project is generating positive cashflow.
-- Group cash on hand at the end of June was GBP7,315,313.
-- The net loss for the six months ended 30 June 2014 was
GBP2,748,972 (30 June 2013: GBP2,198,339). The loss includes a fair
value adjustment of GBP1,585,592 on the derivative component of the
convertible bonds. Operating expenses for the period were
GBP869,266 (30 June 2013: GBP1,687,508).
Commenting on the results, DiamondCorp CEO Paul Loudon said:
'The period under review saw us move closer to our goal of
commencing long-life underground kimberlite mining at the Lace
mine. Our constant attention to mining and development costs, and
emphasis on diamonds recovered rather than tonnes throughput,
positions us well to generate outstanding returns for our
shareholders when mining commences from the UK4 Block in the first
half of 2015.'
28 August 2014
London
CONSOLIDATED Income Statement
Six months ended Six months ended
30 June 2014 30 June 2013
(Unaudited) (Unaudited)
GBP GBP
Operating expenses (869 266) (1 687 508)
---------------------
Operating loss (869 266) (1 687 508)
Investment revenues 21 988 29 128
Finance costs (316 102) (539 959)
Fair value adjustments (Note 4) (1 585 592) -
Loss before tax (2 748 972) (2 198 339)
Tax - -
Loss for the financial year (2 748 972) (2 198 339)
=================== =====================
Attributable to:
Equity holders of the parent (2 676 238) (1 884 889)
Non-controlling interest (72 734) (313 450)
(2 748 972) (2 198 339)
=================== =====================
Basic and diluted loss per share (pence) (Note 2) (0.91) (0.69)
CONSOLIDATED Statement of comprehensive incomE
Period ended Period ended
30 June 2014 30 June 2013
(Unaudited) (Unaudited)
GBP GBP
Net loss (2 748 972) (2 198 339)
Other comprehensive loss:
Items that may be reclassified to profit and loss:
Exchange differences on translating foreign operations (108 048) (1 021 012)
Other comprehensive loss for the year net of taxation (2 857 020) (3 219 351)
=================== =====================
Total comprehensive loss
Total comprehensive loss attributable to:
Equity holders of the parent (2 371 327) (2 672 061)
Non-controlling interest (485 693) (547 290)
(2 857 020) (3 219 351)
=================== =====================
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Six months ended Year ended
30 June 2014 30 December 2013
(Unaudited) (Audited)
GBP GBP
Assets
Non-Current Assets
Property, plant and underground development 18 251 639 14 892 223
Goodwill 4 606 026 4 606 026
Other non-current assets 41 740 43 632
Restricted cash 69 937 73 108
------------------- ------------------------
22 969 342 19 614 989
------------------- ------------------------
Current assets
Inventories 520 000 557 085
Current tax receivable 6 362 6 651
Other receivables 667 217 880 990
Cash and cash equivalents 7 315 313 2 220 130
------------------- ------------------------
8 508 892 3 664 856
------------------- ------------------------
Total Assets 31 478 234 23 279 845
------------------- ------------------------
Equity and Liabilities
Equity
Equity Attributable to owners of the parent
Share capital (Note 3) 37 161 667 35 190 544
Reserves (1 200 268) (1 807 236)
Accumulated loss (25 583 544) (22 907 307)
------------------- ------------------------
10 377 855 10 476 001
Non-controlling interest (2 734 619) (1 946 868)
Total Equity 7 643 236 8 529 133
------------------- ------------------------
Liabilities
Non-Current Liabilities
Other financial liabilities 16 614 893 9 239 447
Provisions 505 892 528 828
------------------- ------------------------
17 120 785 9 768 275
------------------- ------------------------
Current Liabilities
Compound instruments - liabilities 2 623 990 2 532 981
Compound instruments - derivatives 3 619 296 2 107 849
Trade and other payables 470 927 341 607
------------------- ------------------------
6 714 213 4 982 437
------------------- ------------------------
Total Liabilities 23 834 998 14 750 712
------------------- ------------------------
Total Equity and Liabilities 31 478 234 23 279 845
------------------- ------------------------
STATEMENT OF CHANGES IN EQUITY
(UNAUDITED)
Total Total Retained Total Non- Total
Share Reserves losses attributable controlling
Capital to owner interest
of the
parent
GBP GBP GBP GBP GBP GBP
GROUP
Balance at
1 January 34 920 (20 524 14 176 (1 104 13 072
2013 544 (218 920) 660) 964 254) 710
------------------- ---------------------- --------------------- ------------------- ------------------------- ---------------------
Loss for
financial (2 382 (2 382 (227 (2 609
year - - 647) 647) 257) 904)
Other
comprehensive (1 675 (1 675 (615 (2 290
income - 211) 211) 357) 568)
------------------- ---------------------- --------------------- ------------------- ------------------------- ---------------------
Total
comprehensive (1 675 (2 382 (4 057 (842 (4 900
income - 211) 647) 858) 614) 472)
Issue of share
capital 270 000 - - 270 000 - 270 000
Value
attributed
for equity
settled share
based
payments - 86 895 - 86 895 - 86 895
------------------- ---------------------- --------------------- ------------------- ------------------------- ---------------------
Balance at
31 December 35 190 (1 807 (22 907 10 476 (1 946 8 529
2013 544 236) 307) 001 868) 133
------------------- ---------------------- --------------------- ------------------- ------------------------- ---------------------
Balance at
1 January 35 190 (1 807 (22 907 10 476 (1 946 8 529
2014 544 236) 307) 001 868) 133
------------------- ---------------------- --------------------- ------------------- ------------------------- ---------------------
Loss for the
6 month (2 676 (2 676 (72 (2 748
period - - 238) 238) 734) 972)
Other
comprehensive (715
income - 606 968 - 606 968 016) (108 048)
------------------- ---------------------- --------------------- ------------------- ------------------------- ---------------------
Total
comprehensive (2 676 (2 069 (787 (2 857
income - 606 968 238) 269) 751) 020)
Issue of share 1 971 1 971 1 971
capital 123 - - 123 123
Balance at 37 161 (1 200 (25 583 10 377 (2 734 7 643
30 June 2014 667 268) 545) 855 619) 236
------------------- ---------------------- --------------------- ------------------- ------------------------- ---------------------
CONSOLIDATED Cash Flow Statement
Six months ended 30 June 2014 Six months ended 30 June 2013
(Unaudited) (Unaudited)
GBP GBP
Cash flows from operating activities
Cash utilised in operations (1 110 198) (2 359 884)
Finance cost (316 102) -
Net cash used in operating activities (1 426 300) (2 359 884)
-------------------------------- --------------------------------
Cash flows from investing activities
Purchase of property, plant and underground
development (3 038 223) (2 594 366)
Interest income 21 988 29 128
Net cash used in investing activities (3 016 235) (2 565 238)
-------------------------------- --------------------------------
Cash flows from financing activities
Proceeds on share issue 1 971 123 -
Proceeds from other financial liabilities 7 375 446 3 830 427
Net cash from financing activities 9 346 569 3 830 427
-------------------------------- --------------------------------
Total cash movement for the period 4 882 046 (1 094 695)
Cash at the beginning of the period 2 220 130 4 319 776
Effect of exchange rate movement on cash balances 191 149 (220 762)
-------------------------------- --------------------------------
Total cash at end of the period 7 315 313 3 004 319
-------------------------------- --------------------------------
NOTES TO THE FINANCIAL STATEMENTS
Six months ended 30 June 2014
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
27 August 2014 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 2013 have been extracted
from the statutory financial statements of DiamondCorp plc.
A copy of the statutory accounts for the year ended 31 December
2013 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.
These interim financial statements have been prepared using the
accounting policies set out in the Group's 2013 statutory
accounts.
Results for the six-month period ended 30 June 2014 and 30 June
2013 have not been audited.
The comparative information presented in the income statement
has been prepared for the period 1 January 2012 - 30 June 2013.
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. As share options are anti-dilutive, there is no difference
between earnings per share and dilutive earnings per share.
The calculation of basic and diluted loss per ordinary share is
based on the loss attributable to equity holders of the parent of
GBP2,676,238 for the six months ended 30 June 2014 (30 June 2013:
GBP1,839,889) and on 294,360,041 ordinary shares (30 June 2013:
276,836,478) being the weighted-average number of ordinary shares
in issue.
The Group presents an alternative measure of loss per share
after excluding all capital gains and losses from the loss
attributable to ordinary shareholders ("Headline earnings/(loss)").
Due to there being no adjustments, headline loss per share and
basic loss per share is the same.
30 June 30 June
2014 2013
Basic and diluted loss per
share (pence) (0.91) (0.69)
Basic and diluted loss per
share (Rand) (R0.1645) (R0.1035)
3. SHARE CAPITAL
DiamondCorp plc does not have an authorised share capital, in
line with the provisions of the UK Companies Act 2006. The
Directors' authority to issue and allot shares in the company is
set each year by Company's shareholders at the Annual General
Meeting. The level of disapplication in respect of pre-emption
authority is determined by the Board and approved by shareholders
in consultation with the Company's financial and legal advisers and
is based on UK corporate governance guidelines for AIM
companies.
A special resolution was passed at the AGM held on 2 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 2 July 2013 were
resolutions 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.
In April 2014, 41,526,000 ordinary shares of 0.1 pence each were
issued to current and new shareholders of the Company at a price of
5 pence each (R0.90). The cost associated with issuance of these
shares has been charged to the share premium account.
30 June 2014 30 June 2013
Number of shares issued before
reorganisation:
Ordinary shares 276 839 478 270 839 478
Issue of ordinary shares 41 526 000 6 000 000
----------------- -------------------
318 365 478 276 839 478
----------------- -------------------
Reconciliation of number
of shares issued after
reorganisation:
Ordinary shares of 0.1 pence
each 318 365 478 276 839 478
Ordinary shares of 2.9 pence
each 276 839 478 276 839 478
----------------- -------------------
595 204 956 553 678 956
----------------- -------------------
Issued GBP GBP
Ordinary shares of 0.1 pence
each 318 366 276 840
Deferred ordinary shares
of 2.9 pence each 8 028 344 8 028 344
Share premium 28 814 957 26 885 360
----------------- -------------------
37 161 667 35 190 544
----------------- -------------------
Share Re-organisation Detail
- 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 to holders 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.
4. MOVEMENT IN FAIR VALUE
The movement in fair value as indicated in the Income Statement
of GBP1,585,592 relates to fair value measurement of the derivative
component of convertible bonds issued by the Company in South
Africa and the United Kingdom.
5. EVENTS AFTER THE REPORTING PERIOD
No events occurred after the reporting period which had any
material impact on the financial position of the Company.
Contact details:
DiamondCorp plc
Paul Loudon, CEO
Tel: +27 56 216 1300
Euan Worthington, Chairman
Tel: +44 20 3151 0970
UK Broker & Nomad
Panmure Gordon (UK) Limited
Dominic Morley/Adam James
Tel: +44 20 7886 2500
JSE Designated Advisor
Sasfin Capital (a division of Sasfin Bank Limited)
Megan Young
Tel: +27 11 445 8068
This information is provided by RNS
The company news service from the London Stock Exchange
END
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