TIDMAXM
RNS Number : 3639L
Alexander Mining PLC
30 September 2016
30 September 2016
ALEXANDER MINING PLC
INTERIM REPORT FOR SIX MONTHSED 30 JUNE 2016
Alexander Mining plc ("Alexander" or "the Company"), the AIM
quoted mining and mineral processing technologies company,
announces its results for the six months ended 30 June 2016.
The Company's objective is to become a low cost, highly
profitable and diversified mining technology company. This will be
achieved by the commercialisation of its proprietary mineral
processing technologies, partnerships with producing mines and the
acquisition of equity positions in advanced projects.
Highlights
-- Successful placing to raise GBP500,000 and Bonus Warrant issue in May to fund working capital
-- Continued granting of important patents
-- Continuing mining industry interest in using AmmLeach(R) for
base metals' recovery from amenable deposits
-- Post period end - Licence agreement with Accudo Metals in Australia to investigate a range of opportunities
-- Company investigating exciting potential to use its leaching
technologies for the recovery of cobalt, a key component of most
electric car lithium ion batteries
Chairman's Review
I am pleased to report on behalf of your Board of Directors the
Company's results for the six months ended 30 June 2016.
It has remained a challenging business environment for the
company, however there are tentative signs that we may have seen
the mining industry's fortunes bottom out and can expect improving
conditions ahead. It is therefore pleasing to report on some
positive progress in our commercialisation efforts.
As we have often stated, Alexander's technologies are pertinent
in a low metals' price environment due to the significant potential
benefits offered from capital and operating cost savings. In
addition, the unique environmental and operational efficiency
attributes of our technologies for the recovery of specific metals
are of interest regardless of metals' prices.
The licence granted to Accudo Metals in August is a significant
development. Accudo is funded by sophisticated investors and
clients of BlueMount Capital ("BlueMount"), a national mid-tier
Australian investment bank. Pre-funding for test work and a full
Scoping Study on the first targeted opportunity has been committed.
Subject to the Scoping Study being positive, Accudo foundation
funders and BlueMount clients will fund a detailed feasibility
study.
Accudo has initiated laboratory testing on various samples of
ore from a project in Australia with target oxide and transitional
ores. The tests have been conducted and are being analysed. Results
to date are within expected performance and are encouraging.
Further details of the licence granted to Accudo are in the
announcement released by the Company on 25 August 2016.
Regarding other exciting opportunities, there is the potential
to use Alexander's leaching technologies to process certain cobalt
minerals for the recovery of cobalt metal at the mine site. This is
an especially interesting opportunity given the strong growth
forecast for electric vehicles sales and the batteries they need.
Many of the preferred batteries used, as well needing lithium, also
require significant quantities of cobalt. There is an industry
problem in obtaining supply using ethical production methods, in
particular from countries such as the Democratic Republic of the
Congo ("DRC"). With such a restriction, the key challenge, given
the DRC's dominance of world cobalt production and reserves (circa
over 50% for each), will be securing supply from such acceptable
sources.
Finally, during the period the Company continued to add granted
patents to its portfolio of intellectual property as well as make
additional applications.
Financial
The Company has been assiduous in keeping its overheads to the
minimum necessary, whilst maintaining required expenditure on
business development and intellectual property protection.
In May, the Company raised GBP500,000 in a placing (the
"Placing"). The net proceeds of the Placing were for general
working capital purposes.
Due to the impact of the Placing on existing shareholders, in
order to partially alleviate the impact of dilution and provide
existing shareholders at the time with some ability to subscribe,
the Board decided to issue new warrants ("Warrants") to existing
shareholders on the record date ("Qualifying Shareholders") on a
pro rata basis of one Warrant for every four Ordinary Shares
("Qualifying Shares") held (the "Warrant Bonus Issue").
With the net proceeds from the Placing, potential cash proceeds
from the Warrant Bonus Issue exercise (of which 32,494,811 out of a
total of 90,477,572 have been exercised to date) and also potential
revenue from the commercialisation of our proprietary leaching
technologies, the Company should have adequate working capital
through until at least the end of the May 2017.
Outlook
The global economy and world stock markets remain volatile.
Nevertheless, there is a general tone of cautious optimism
returning to the mining sector, which we subscribe to. Accordingly,
we remain confident about commercial interest in using our
technologies to capitalise on its benefits for cost savings,
operational efficiency and strongly positive environmental
benefits.
Given the background of the Company's directors and senior
employees, we are also reviewing several complementary
opportunities of interest in the mining sector.
Finally, I would like to thank Alexander's valued shareholders
for their continuing support and our employees, directors,
consultants and advisers for their commitment during difficult
times.
Matt Sutcliffe
Executive Chairman
30 September 2016
For further information, please contact:
Martin Rosser Matt Sutcliffe
------------------------ -------------------------
Chief Executive Officer Executive Chairman
------------------------ -------------------------
Mobile: + 44 (0) 7770 Mobile: +44 (0) 7887 930
865 341 758
------------------------ -------------------------
Northland Capital Partners Limited
Matthew Johnson / Gerry Beaney
+44 (0) 20 3861 6625
(Corporate Finance)
John Howes / Abigail Wayne
(Corporate Broking)
Turner Pope Investments (TPI) Limited
James Pope / Ben Turner
+44 (0) 20 3621 4120
Consolidated income statement
Six months Six months Year ended
ended ended 31 December
30 June 30 June 2015
2016 2015
GBP'000 GBP'000 GBP'000
---------------------------------- ----------- ----------- -------------
Continuing operations
Revenue - 8 8
Cost of sales - - -
---------------------------------- ----------- ----------- -------------
Gross profit - 8 8
Administrative expenses (189) (377) (608)
Research and development
expenses (89) (151) (249)
Operating loss (278) (520) (849)
Finance income - - -
Finance cost (46) 35 -
---------------------------------- ----------- ----------- -------------
Loss before taxation (324) (485) (849)
Income tax expense - - -
---------------------------------- ----------- ----------- -------------
Loss for the period from
continuing operations (324) (485) (849)
Loss for the period from
discontinued operations - - -
---------------------------------- ----------- ----------- -------------
Loss for the period (324) (485) (849)
---------------------------------- ----------- ----------- -------------
Basic and diluted (loss)
per share (pence)
from continuing operations: (0.07)p (0.19)p (0.30)p
from continuing and discontinued
operations (0.07)p (0.19)p (0.30)p
from discontinued operations - - nil
---------------------------------- ----------- ----------- -------------
All components of profit or loss are attributable
to equity holders of the parent.
Consolidated statement of comprehensive income
Six months Six months Year ended
ended ended 31 December
30 June 30 June 2015
2016 2015
GBP'000 GBP'000 GBP'000
------------------------------- ----------- ----------- -------------
Loss for the period (324) (485) (849)
Other comprehensive income:
Items that will or may
be reclassified to profit
or loss:
Exchange differences realised - -
on disposal of subsidiary -
Total comprehensive loss
for the period attributable
to equity holders of the
parent (324) (485) (849)
------------------------------- ----------- ----------- -------------
Consolidated balance sheet
As at As at As at
30 June 30 June 31 December
2016 2015 2015
GBP'000 GBP'000 GBP'000
------------------------------ --------- --------- -------------
Assets
Property, plant & equipment - - -
Total non-current assets - - -
------------------------------ --------- --------- -------------
Trade and other receivables 50 48 41
Cash and cash equivalents 415 46 165
------------------------------ --------- --------- -------------
Total current assets 465 94 206
------------------------------ --------- --------- -------------
Total assets 465 94 206
------------------------------ --------- --------- -------------
Equity attributable to
owners of the parent
Issued share capital 14,325 13,719 13,825
Share premium 13,780 13,598 13,822
Translation reserve - - -
Accumulated losses (28,260) (27,686) (27,971)
------------------------------ --------- --------- -------------
Total equity (155) (369) (324)
------------------------------ --------- --------- -------------
Liabilities
Current liabilities
Trade and other payables 620 463 530
Provisions - - -
------------------------------ --------- --------- -------------
Total current liabilities 620 463 530
Total liabilities 620 463 530
------------------------------ --------- --------- -------------
Total equity and liabilities 465 94 206
------------------------------ --------- --------- -------------
Consolidated statement of cash flows
Six months Six months Year ended
ended ended 31 December
30 June 30 June 2015
2016 2015
GBP'000 GBP'000 GBP'000
--------------------------------- ----------- ----------- -------------
Cash flows from operating
activities
Operating loss - continuing
operations (278) (520) (849)
Operating loss - discontinued - -
operations -
(Increase) / decrease in
trade and other receivables (9) 19 26
Increase / (decrease) in
trade and other payables 91 25 92
Increase / (decrease) in
provisions - (18) (18)
Shares issued in payment
of expenses - 51 57
Share option charge 26 10 32
Net cash outflow from operating
activities (170) (434) (660)
--------------------------------- ----------- ----------- -------------
Cash flows from investing
activities
Interest received - - -
Net cash inflow from investing - -
activities -
--------------------------------- ----------- ----------- -------------
Cash flows from financing
activities
Proceeds from the issue
of share capital 466 328 709
Proceeds from issue of - -
share options -
--------------------------------- ----------- ----------- -------------
Net cash inflow from financing
activities 466 328 709
--------------------------------- ----------- ----------- -------------
Net increase / (decrease)
in cash and cash equivalents 296 (105) 49
Cash and cash equivalents
at beginning of period 165 116 116
Exchange differences (46) 35 -
--------------------------------- ----------- ----------- -------------
Cash and cash equivalents
at end of period 415 46 165
--------------------------------- ----------- ----------- -------------
Consolidated statement of changes in equity
Share Share Shares Translation Accumulated Total
capital premium to be reserve losses equity
issued
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 1 January
2015 13,639 13,298 - - (27,211) (274)
---------------------- ---------------- --------- -------- ------------ ------------ --------
Accumulated
loss for period - - - - (485) (485)
Total comprehensive
loss for the
period attributable
to equity
holders of
the parent - - - - (485) (485)
---------------------- ---------------- --------- -------- ------------ ------------ --------
Share option
costs - - - - 10 10
Shares issued 80 331 - - - 411
Share issue
costs (31) (31)
At 30 June
2015 13,719 13,598 - - (27,686) (369)
---------------------- ---------------- --------- -------- ------------ ------------ --------
Accumulated
loss for period - - - - (364) (364)
Total comprehensive
loss for the
period attributable
to equity
holders of
the parent - - - - (364) (364)
---------------------- ---------------- --------- -------- ------------ ------------ --------
Share option
and Warrant
costs - - - - 79 79
Shares issued 106 264 - - - 370
Share issue
costs (40) (40)
At 31 December
2015 13,825 13,822 - - (27,971) (324)
---------------------- ---------------- --------- -------- ------------ ------------ --------
Accumulated
loss for period - - - - (324) (324)
Total comprehensive
loss for the
period attributable
to equity
holders of
the parent - - - - (324) (324)
---------------------- ---------------- --------- -------- ------------ ------------ --------
Share option
and Warrant
costs - - - - 35 35
Shares issued 500 (8) - - - 492
Share issue
costs - (34) - - - (34)
At 30 June
2016 14,325 13,780 - - (28,260) (155)
---------------------- ---------------- --------- -------- ------------ ------------ --------
Notes to the interim financial information
1. Basis of preparation
The interim financial information has been prepared in
accordance with International Financial Reporting Standards
("IFRSs") in force at the reporting date and their interpretations
issued by the International Accounting Standards Board ("IASB") as
adopted for use within the European Union. The accounting policies,
methods of computation and presentation used in the preparation of
the interim financial information are the same as those used in the
Group's audited financial statements for the year ended 31 December
2015.
The financial information in this statement does not constitute
full statutory accounts within the meaning of Section 434 of the
Companies Act 2006. The financial information for the six months
ended 30 June 2016 and 30 June 2015 is unaudited. The comparative
information for the year ended 31 December 2015 was derived from
the Group's audited financial statements for that period as filed
with the Registrar of Companies. It does not constitute the
financial statements for that period. Those financial statements
received an unqualified audit report, but contained an emphasis of
matter in respect of going concern.
Going Concern
In common with many mining, exploration and intellectual
property development companies, the Company has raised finance for
its activities in discrete tranches to finance its activities for
limited periods. On 20 May 2016 the Company raised GBP500,000,
before expenses, by way of an equity placing. It is anticipated
that further funding will be required in the next twelve months and
the Directors believe that the Company currently has a range of
corporate development opportunities which could give rise to
significant funding in the next twelve months.
On this basis, the Directors have concluded that it is
appropriate to prepare the interim financial information on the
going concern basis. However, there can be no certainty that the
corporate development opportunities will be secured and give rise
to the further funding in the necessary timescale. This indicates
the existence of a material uncertainty that may cast significant
doubt on the ability of the company and the group to continue as a
going concern and therefore, that it may be unable to realise its
assets and discharge its liabilities in the normal course of
business. The financial statements do not include the adjustments
that would result if the Company and Group were unable to continue
as a going concern.
2. Loss per share
The calculation of loss per share is based on the weighted
average number of shares in issue in the six months to 30 June 2016
of 474,547,651 (six months to 30 June 2015: 249,945,195 and year to
31 December 2015: 279,185,132) and computed on the respective loss
figures as follows:
6 months 6 Months Full year
2016 2015 2015
GBP'000 Per GBP'000 Per GBP'000 Per
share share share
(Loss) - continuing
operations (315) (0.07)p (485) (0.19)p (849) (0.30)p
(Loss) - discontinued - - - - - -
operations
(Loss) - continuing
and discontinued
operations (315) (0.07)p (485) (0.19)p (849) (0.30)p
There is no difference between the diluted loss per share and
the basic loss per share presented. Share options granted to
employees, consultants and directors could potentially dilute basic
earnings per share in the future, but were not included in the
calculation of diluted earnings per share as they were
anti-dilutive for the period presented.
At 30 June 2016 there were 12,900,000 (at 30 June 2015:
12,900,000; at 31 December 2015: 12,900,000) share options in issue
that could have a potentially dilutive effect on the basic earnings
per share in the future.
At 30 June 2016 there were 186,436,945 (at 30 June 2015:
3,600,000; at 31 December 2015: 45,959,373) share warrants in issue
that could have a potentially dilutive effect on the basic earnings
per share in the future.
3. Share Capital
Changes in issued share capital and share premium during the
reporting period occurred as follows:
Ordinary shares Number of shares Share Share
capital premium
Balance at 1 January 2016 361,910,288 361,910 13,822,084
20 May- shares issued for cash at 0.5p
each 500,000,000 500,000 (34,200)
24 May - Warrant issue to Shareholders - - (8,109)
Balance at 30 June 2016 861,910,288 861,910 13,779,775
======================================= ================ ========== ==========
Deferred shares Deferred
share
Number of shares capital
Balance at 1 January 2016 135,986,542 13,462,667
--------------------------------------- ---------------- ----------
Balance at 30 June 2016 135,986,542 13,462,667
======================================= ================ ==========
4. Share options and Warrants
All Share Option costs incurred are allocated to Accumulated
Losses.
The Company has a total of 12,900,000 Share Options in issue
during the period (all with exercise prices of 4.92p per share),
representing 1.22 per cent of the issued share capital of the
Company on a fully diluted basis. Share option charges for the six
months to 30 June 2016 amounted to GBP8,021 (2015: GBP9,626).
The Company had a total of 60,959,375 warrants in issue during
the period for the provision of Broker services (3,600,000 with an
exercise price of 0.5p per share, 7,359,375 with an exercise price
of 0.4p per share and 50,000,000 with an exercise price of 0.1p per
share. Warrant charges for the six months to 30 June 2016 amounted
to GBP18,726.47 (2015: GBPnil).
The Company has a total of 34,999,998 warrants in issue during
the period granted to subscribers of the 2 October 2015 placing
with an exercise price of 0.45 pence per share.
The Company had a total of 90,477,572 warrants in issue granted
to existing shareholders of the Company at 4.30 pm on the 24 May
2016 on the basis of 1 warrant per every 4 qualifying shares held
by shareholders. A charge of GBP8,109 was made to equity for the
six months ending 30 June 2016 (2015: GBPnil).
5. Post balance sheet events:
Exercise of Warrants
On the 21 July 2016, the Company issued 15,000,000 new ordinary
shares of 0.1p per ordinary share following the exercise of
15,000,000 broker warrants held by Cornhill Capital Limited at 0.1p
per share, following the admission of the shares the Company had
876,910,288 shares in issue.
On the 28 July 2016, the company issued 32,494,811 new ordinary
shares of 0.1p per ordinary share following the exercise of
32,494,811 warrants issued pursuant to the Warrant Bonus issue
announced on 20 May 2016 at 0.1p per share, following the admission
of the shares the Company had 909,405,099 shares in issue.
On the 31 August 2016, the Company issued 11,741,665 new
ordinary shares of 0.1p per ordinary share following the exercise
of 11,741,665 broker warrants held by Cornhill Capital Limited at
0.1p per share, following the admission of the shares the Company
had 921,146,764 shares in issue.
On the 29 September 2016, the Company issued 13,258,335 new
ordinary shares of 0.1p per ordinary share following the exercise
of 13,258,335 broker warrants held by Cornhill Capital Limited at
0.1p per share, following the admission of the shares the Company
will have 934,405,099 shares in issue.
Issue of Share Options
On the 29 July 2016, the Board approved the grant of an
additional 43,300,000 new share options at an exercise price of
0.22p ("exercise Price) to directors, employees and a
consultant.
Copies of these announcements are available to view on the
Company's website at www.alexandermining.com.
Disclaimers
Neither the contents of the Company's website nor the contents
of any website accessible from hyperlinks on the Company's website
(or any other website) is incorporated into, or forms part of, this
announcement.
This news release contains forward looking or future-oriented
financial information, being information which is not historical
fact, including, without limitation, statements regarding potential
results of metallurgical testwork, anticipated applications for the
Company's intellectual property and discussions of future plans and
objectives. Although the Company believes that the expectations
reflected by such information are reasonable, these statements are
based on assumptions and factors concerning future events that may
prove to be inaccurate. Such statements are necessarily based upon
a number of estimates and assumptions based on information
available to the Company about itself and the business in which it
operates. Information used in developing forward-looking
information has been acquired from various sources including third
party consultants, suppliers, regulators and other sources and is
subject to numerous risks and uncertainties that could cause actual
results and future events to differ materially from those
anticipated or projected. Important factors that could cause actual
results to differ materially from the Company's expectations are
the continuing availability of capital resources to fund the
commercialisation of Alexander's technologies; continued positive
results from trials and applications of Alexander's AmmLeach(R) and
HyperLeach(R) technologies and other factors as disclosed in
Company documents filed from time to time. Management uses
forward-looking statements because it believes they provide useful
information to the shareholders with respect to proposed
transactions involving Alexander, and cautions readers that the
information may not be appropriate for other purposes and should
not be read as guarantees of future performance or results. The
Company disclaims any intention or obligation to revise or update
such statements unless required by law.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR BBGDCXDXBGLG
(END) Dow Jones Newswires
September 30, 2016 07:25 ET (11:25 GMT)
Eenergy (LSE:EAAS)
Historical Stock Chart
From Mar 2024 to Apr 2024
Eenergy (LSE:EAAS)
Historical Stock Chart
From Apr 2023 to Apr 2024