TIDMGSR
RNS Number : 2469S
Golden Saint Resources Ltd
29 September 2017
29 September 2017
Golden Saint Resources Ltd
("GSR" or the "Company" or "Group")
Interim Results
The Board of Directors of Golden Saint Resources Ltd is pleased
to announce the Company's unaudited results for the six months
ended 30 June 2017.
Highlights within the six-month period to 30 June 2017
-- Tongo License bulk sampling results
o 750 tonnes of gravel processed;
o 56 diamonds recovered;
o 96.75cts diamonds recovered;
o 26g gold recovered;
o 12.9CPHT (carat per hundred tonnes);
o 1.73cts/stn (carats per stone);
o 0.035g/t (gram per tonne) gold;
o Largest stone 4.10ct;
o Reconnaissance kimberlite exploration commenced targeting the
highest priority geophysical target, TD-1;
-- Baja License bulk sampling results
o 1 355 tonnes of gravel processed;
o 52 diamonds recovered;
o 84.73cts diamonds recovered;
o 1.8g gold recovered;
o 6.3CPHT;
o 1.63cts/stn;
o 0.0013g/t gold;
o Largest stone 2.55ct;
-- Acceptable tracer test results at all bulk sampling plants;
-- Competent person's note on exploration activities attached to this announcement http://www.rns-pdf.londonstockexchange.com/rns/2469S_1-2017-9-29.pdf
; and
-- For the six months to 30 June 2017, the Group recorded a
total comprehensive loss of USD $891,000 (2016: USD $1,073,000)
showing a further streamlining of exploration and other costs.
Highlights of operations post 30 June 2017
-- Bulk sampling of gravels continuing at Tongo Site #2 and Baja
Site #4. Expected to be completed by end of September 2017;
-- The geochemical soil sampling program with field mapping,
focussing predominantly on gold distributions and occurrences,
started on Moa; and
-- The Company announced the return of Hassan Abass Kargbo as
Exploration Manager to the Sierra Leone team, effective 12 May
2017. Hassan is an internationally experienced geologist with over
8 years of experience in Sierra Leone. Sallau Deen moved into the
role of Senior Geologist.
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
A copy of the interim results is available on the Company's
website www.goldensaintresources.com.
For further information, please contact:
Golden Saint Resources Ltd Pierre Fourie +61 (0) 8 6145 4400
Beaumont Cornish Limited Roland Cornish / Emily Staples +44 (0)
20 7628 3396
Cassiopeia Services Limited Stefania Barbaglio +44 (0) 79 4969
0338
SVS Securities Plc Tom Curran / Ben Tadd +44 (0) 20 7710
9612
Chief Executive Officer's Statement
Operations
The company's strategy of extracting sufficient gravel to
continue the bulk sample processing activities through the peak of
the wet season proved successful. During this next dry season, the
company is planning field mapping at Baja to guide the positioning
of future bulk samples. At Tongo the plan is to excavate enough
gravel to feed the processing plant at 4t/hr continuously (also
through the wet season). Equipment will be rented that will enable
the company to extract gravel down to the bottom of the basal level
for maximum diamond and gold recovery. Follow-up geochemical soil
sampling and mapping at Moa will focus predominantly on gold
distributions and occurrences.
In the Tongo licence, 750 tonnes of the alluvial target on the
left-bank of the Woa Valley (Tongo Site #2) were processed through
a horizontal Dove jig plant to yield 96.75 carats (cts) of diamonds
running at 12.9CPHT (carats per hundred tonnes) and an average
stone size of 1.73cts/stn. The largest diamond recovered was a
4.10ct stone. Free gold of 26 grams at 0.035g/t was also recovered.
In addition, reconnaissance kimberlite exploration commenced in the
Tongo licence, targeting the highest priority geophysical target,
TD-1.
At the alluvial target at Baja Site #4 in the Sewa Valley 1,355
tonnes were processed through the local washplant yielding 84.73cts
of diamonds at a grade of 6.3CPHT and an average stone size of
1.63cts/stn. The largest diamond recovered was a 2.55ct stone. Free
gold of 1.8 grams at a recovered grade of 0.0013g/t was also
recovered.
In the Moa licence, further desktop studies were completed
leading to a planned geochemical soil sampling programme targeting
gold and other mineralisation on the western side of the Moa
Valley. Field mapping will further contribute to the understanding
of the nature of gold occurrences on the license.
The encouraging provisional bulk sampling results give the
company confidence to increase the rate of bulk sampling in
parallel to other exploration activities. The addition of a roll
sieve to the scrubber at Tongo plus an additional jig plant will
increase the maximum production capacity from 1t/hr to 5t/hr
without sacrificing diamond or gold recovery efficiencies.
As at the date of this report, the current annual licence fees
have been paid to the National Minerals Agency (NMA).
Corporate
The Board of Directors of the Company became more functional
with the addition of Mr Pierre Fourie as Chief Executive Officer
effective 1 September 2017 and Mr Yohannes Adimas Prawiro as
Executive Director, Business Development effective 24 July 2017.
Adimas previously served as Project Manager for GSR. Pierre has an
extensive career of over 20 years as a mining engineer in the area
of resource/reserve estimation, mineral economics, mine
construction and operations. In addition to his career experience,
Pierre has a B. Com. and a B. Eng. and is also a member of the
Australian Institute of Mining and Metallurgy and the Canadian
Institute of Mining, Metallurgy and Petroleum. Pierre is a
competent professional to be appointed as CEO for the Board. Keng
H. Seah resigned from the board with effect 31 July 2017.
As at 30 June 2017, the Group's cash and cash equivalents stood
at USD 181,000. It is encouraging that the company is still
supported by the market as it raised an amount of GBP614,820
(before expenses) in September 2017 by way of a placing. This
enables the company to expand bulk sampling activities moving
closer to a self-funding exploration program. It also enables the
company to look at new business opportunities led by Director
Adimas Prawiro.
Going concern
This report has been prepared on the going concern basis, which
contemplates the continuation of normal business activity and the
realisation of assets and the settlement of liabilities in the
normal course of business.
The Directors believe that, with due consideration to the
Group's future plans, there are sufficient funds to meet the
Group's working capital requirements.
The Group recorded a comprehensive loss of USD$891,000 for the
six months ended 30 June 2017 and had net assets of USD$1,592,000
as at 30 June 2017 (2016: loss of USD$1,073,000 and net assets of
USD$1,691,000).
This Going Concern statement is primarily dependent on an
ongoing capital raising as well as on the continuing shipment and
possible sale of diamonds and gold from bulk sampling activities.
The Company intends to continue with its fundraising efforts and
will inform shareholders of further raises as and when they
occur.
Outlook
Moving towards proving up inferred resources on the three
license areas in Sierra Leone, the company is planning on expanding
bulk sampling rates in the alluvial diamond and gold areas in
parallel to other exploration activities.
Pierre Fourie
Chief Executive Officer
Consolidated Interim Statement of Comprehensive Income for the
period 1 January 2017 to 30 June 2017
6 months 6 months
ended ended
30 June 30 June
2017 2016
USD$'000 USD$'000
Notes (Unaudited) (Unaudited)
Net operating income
Sales 6 2
Foreign exchange
gain / (loss) (5) (10)
Other Income - -
------------- -------------
1 (8)
Net operating expenses
Continuing operations 2 (904) (1,018)
-------------
Operating loss (904) (1,018)
Net loss for the
period (903) (1,026)
------------- -------------
Other comprehensive
income
Foreign currency
loss 12 (47)
Total comprehensive
loss for the period (891) (1,073)
Net Loss for the
period attributable
to:
Equity holders for
the parent (756) (936)
Non-controlling
interest (147) (90)
------------- -------------
(903) (1,026)
Total comprehensive
loss for the period
attributable to:
Equity holders for
the parent (744) (983)
Non-controlling
interest 16 (147) (90)
------------- -------------
(891) (1,073)
------------- -------------
Earnings per share
attributable to
members of the Parent
Basic loss per share
-cents 5 (0.01) (0.04)
Diluted loss per
share-cents 5 (0.01) (0.04)
Consolidated Interim Statement of Financial Position as at 30
June 2017
Note 6 months Year ended
ended
30 June
2017
USD$'000 31 December
2016
(Unaudited) USD$'000
(Audited)
ASSETS
Current assets
Cash and cash equivalents 7 181 376
Trade and other
receivables 8 115 40
Inventories 9 300 306
--------------
Total current assets 596 722
Non-current assets
Property plant and
equipment 10 1,027 1,077
Exploration and
evaluation assets 11 66 132
Intangible assets 12 6 6
-------------- --------------
Total non-current
assets 1,099 1,215
-------------- --------------
TOTAL ASSETS 1,695 1,937
-------------- --------------
EQUITY
Share capital 15 55,869 55,077
Reserves 15 (42,782) (42,794)
Retained earnings (11,495) (10,592)
-------------- --------------
Total equity 1,592 1,691
-------------- --------------
Equity attributable
to owners of the
parent 2,573 2,525
Non-controlling
equity interest 16 (981) (834)
-------------- --------------
1,592 1,691
-------------- --------------
LIABILITIES
Current liabilities
Trade and other
payables 17 85 234
Financial Liabilities 19 18 12
-------------- --------------
TOTAL LIABILITIES 103 246
--------------
TOTAL EQUITY & LIABILITIES 1,695 1,937
-------------- --------------
Consolidated Interim Statement of Cash Flows for the period 1
January 2017 to 30 June 2017
Note 6 months 6 months
ended ended
30 June 30 June
2017 2016
USD$'000 USD$'000
(Unaudited) (Unaudited)
Cash Flows from operating
activities
Loss before taxation
from operations (903) (1,026)
Adjustments to add/(deduct)
non-cash items:
Depreciation of property,
plant and equipment 72 69
Amortisation of exploration 66 -
costs
Unrealised foreign
exchange losses 5 (47)
------------- -------------
Operating loss before
working capital changes (760) (1,004)
Decrease in inventories 6 11
Decrease / (increase)
in prepayments and
other receivables (75) 13
Decrease / (increase) 6 -
in financial liabilities
Decrease / (Increase)
in trade and other
payables (68) (130)
------------- -------------
Net cash flow from
operating activities (891) (1,110)
Cash flows from investing
activities
Payments to acquire
property plant and
equipment (21) (7)
Increase in deposits - -
paid
Payment for intangible - -
assets
Exploration assets - -
------------- -------------
Net cash flow from
investing activities (21) (7)
Cash flows from financing
activities
Proceeds of ordinary
share issue 717 1,826
Proceed from loans - -
Redemption of Convertible - -
Note
-------------
Net cash flow from
financing activities 717 1,826
Net increase/(decrease)
in cash and cash
equivalents (195) 709
------------- -------------
Cash and cash equivalents
at beginning of period 376 13
------------- -------------
Cash and cash equivalents
at end of period 181 722
------------- -------------
Consolidated Interim Statement of Changes in Equity for the
period 1 January 2017 to 30 June 2017
Attributable to equity
holders of the parent
------------------------------------------
Share Foreign Merger Retained Total Total Non-Controlling Total
Capital Currency Reserve Earnings Equity Attributable Interest
Reserve to
Owners (US
(US (US (US (US (US of $'000) (US
$'000) $'000) $'000) $'000) $'000) the $'000)
Parent
(US
$'000)
As at
1 January
2017 55,077 (147) (42,647) (10,592) 1,691 2,525 (834) 1,691
Comprehensive
income
/ (loss)
for the
period - - - (903) (903) (756) (147) (903)
Foreign
exchange
gain /
(loss)
on
translation - 12 - - 12 12 - 12
Total
comprehensive
income
for the
period - 12 - (903) (891) (744) (147) (891)
Transaction
with owners
in their
capacity
as owners
Shares
issued
during
the period 812 - - - 812 812 - 812
Cost of
capital (20) - - - (20) (20) - (20)
-------- --------- --------- ---------- ------- ------------- ---------------- -------
As at
30 June
2017 55,869 (135) (42,647) (11,495) 1,592 2,573 (981) 1,592
-------- --------- --------- ---------- ------- ------------- ---------------- -------
Notes to the Financial Statements
Accounting Policies
1.1 Corporate information
The consolidated financial statements of Golden Saint Resources
Ltd for the financial period from 1 January 2017 and ended 30 June
2017 were authorised for issue in accordance with a resolution of
the Directors on 26 September 2017.
The registered office of Golden Saint Resources Ltd, the
ultimate parent of the Group, is 171 Main Street, Road Town Tortola
VG 1110 British Virgin Islands.
The principal activity of the Group is early stage diamond and
gold exploration with three Exploration Licenses in Sierra
Leone.
1.2 Basis of preparation
The consolidated financial statements of Golden Saint Resources
Limited and its controlled entities ("the Group") have been
prepared in accordance with International Financial Reporting
Standards (IFRS) as issued by the International Accounting
Standards Board (IASB) and adopted by the European Union (EU) as
they apply to the financial statements of the Group for the period
1 January 2017 to 30 June 2017.
The consolidated financial statements have been prepared on a
historical cost convention basis, except for certain financial
instruments that have been measured at fair value. The consolidated
financial statements are presented in US dollars and all values are
rounded to the nearest thousand except when otherwise
indicated.
1.3 Basis of consolidation
The consolidated financial statements comprise the financial
statements of the Group as at 30 June 2017, and for the period then
ended.
Subsidiaries are fully consolidated from the date of
acquisition, being the date on which the Group obtains control, and
continue to be consolidated until the date when such control
ceases.
The financial statements of the subsidiaries are prepared for
the same reporting period as the parent company, using consistent
accounting.
All intra-group balances, transactions, unrealised gains and
losses resulting from intra-group transactions and dividends are
eliminated in full.
Total comprehensive income within a subsidiary is attributed to
the non-controlling interest even if it results in a deficit
balance. A change ownership interest of a subsidiary, without a
loss of control, is accounted for as an equity transaction.
Pooling of Interests on Incorporation of Parent Entity
On incorporation of the entity, subsidiaries have been
consolidated using the pooling of interests method on the basis
that the entities being combined are ultimately controlled by the
same parties, both before and after the combination.
Under this method the assets and liabilities of the acquiree are
recorded at book value and intangible assets and contingent
liabilities are only recognised if they were previously recognised
by the acquiree. No goodwill is recorded and expenses of the
combination are written off immediately in profit or loss.
The excess of consideration over the value of the acquiree's net
assets is recognised in the merger reserve, a negative reserve
within equity.
Any non-controlling interest in the acquiree is recognised as
the proportion of the assets and liabilities of the acquiree at the
date of acquisition. From the date of acquisition forward, a
proportionate share of profits, or losses, in the related
subsidiary is then attributed to the non-controlling interest.
Subsequent Business Combinations
Business combinations occur where an acquirer obtains control
over one or more businesses. A business combination is accounted
for by applying the acquisition method, unless it is a combination
involving entities or businesses under common control. The business
combination will be accounted for from the date that control is
attained, whereby the fair value of the identifiable assets
acquired and liabilities (including contingent liabilities) assumed
is recognised (subject to certain limited exceptions).
When measuring the consideration transferred in the business
combination, any asset or liability resulting from a contingent
consideration arrangement is also included. Subsequent to initial
recognition, contingent consideration classified as equity is not
re-measured and its subsequent settlement is accounted for within
equity. Contingent consideration classified as an asset or
liability is re-measured in each reporting period to fair value,
recognising any change to fair value in profit or loss, unless the
change in value can be identified as existing at acquisition
date.
All transaction costs incurred in relation to business
combinations are expensed to the statement of comprehensive income.
The acquisition of a business may result in the recognition of
goodwill or a gain from a bargain purchase.
1.4 Significant accounting judgements, estimates and assumptions
The preparation of the Group's consolidated financial statements
requires management to make judgements, estimates and assumptions
that affect the reported amounts of assets and liabilities and the
disclosure of contingent liabilities at the date of the
consolidated financial statements, and the reported amounts of
revenues and expenses during the reporting period. Estimates and
assumptions are continuously evaluated and are based on
management's experience and other factors, including expectations
of future events that are believed to be reasonable under the
circumstances. However, actual outcomes would differ from these
estimates if different assumptions were used and different
conditions existed.
In particular, the Group has identified the following areas
where significant judgements, estimates and assumptions are
required, and where actual results were to differ, may materially
affect the financial position or financial results reported in
future periods. Further information on these and how they impact
the various accounting policies is located in the relevant notes to
the consolidated financial statements.
1.4.1 Key Judgements
In the process of applying the Group's accounting policies,
management has made the following judgements, which have the most
significant effect on the amounts recognised in the consolidated
financial statements.
Going concern
This report has been prepared on the going concern basis, which
contemplates the continuation of normal business activity and the
realisation of assets and the settlement of liabilities in the
normal course of business.
At 30 June 2017, the Group held cash reserves of $181,000 (2016:
$376,000).
The Directors are confident the Group will generate revenue from
alluvial diamond and gold sales in the second half of 2017 which
will contribute to cash flow. In addition the Company intends to
raise additional equity finance during the course of the year to
contribute towards its working capital requirements.
On this basis, the Directors believe that there are sufficient
funds to meet the Group's working capital requirements.
The Group recorded a loss of $903,000 for the six months ended
30 June 2017 and had net assets of $1,592,000 as at 30 June 2017
(2016: loss of $1,026,000 and net assets of $1,691,000).
Should the Group be unable to obtain sufficient funding as
advised above, there is a material uncertainty which may cast doubt
as to whether or not the Group will be able to continue as a going
concern and whether it will realise its assets and extinguish its
liabilities in the normal course of business and at the amounts
stated in the financial statements.
The financial statements do not include any adjustments relating
to the recoverability and classification of recorded asset amounts
nor to the amounts and classification of liabilities that might be
necessary should the Group not continue as a going concern.
Accruals
Management have used judgement and prudence when estimating
certain accruals for contractor claims. The accruals recognised are
based on work performed but are before settlement.
Contingencies
By their nature, contingencies will only be resolved when one or
more uncertain future events occur or fail to occur. The assessment
of the existence, and potential quantum, of contingencies
inherently involves the exercise of significant judgement and the
use of estimates regarding the outcome of future events. Please
refer to Note 19 for further details.
Impairment of assets
The Group assesses each asset or cash generating unit (CGU)
every reporting period to determine whether any indication of
impairment exists. Where an indicator of impairment exists, a
formal estimate of the recoverable amount is made, which is
considered to be the higher of the fair value less costs to sell,
or the value in use.
These assessments require the use of estimates and assumptions
such as long-term commodity prices (considering current and
historical prices, price trends and related factors), discount
rates, operating costs, future capital requirements, closure and
rehabilitation costs, exploration potential, reserves and operating
performance (which includes production and sales volumes). These
estimates and assumptions are subject to risk and uncertainty.
Therefore, there is a possibility that changes in circumstances
will impact these projections, which may impact the recoverable
amount of assets and/or CGUs. Please refer to Note 10 for further
details.
Goodwill and intangible assets that have an indefinite useful
life are not subject to amortisation and are tested annually for
impairment, or more frequently if events or changes in
circumstances indicate that they might be impaired. Other assets
are tested for impairment whenever events or changes in
circumstances indicate that the carrying amount may not be
recoverable. An impairment loss is recognised for the amount by
which the asset's carrying amount exceeds its recoverable amount.
The recoverable amount is the higher of an asset's fair value less
costs to sell and value in use.
1.4.2 Key estimates and assumptions
The key assumptions concerning the future and other key sources
of estimation uncertainty at the reporting date, that have a
significant risk of causing a material adjustment to the carrying
amounts of assets and liabilities within the next financial year,
are described below. The Group based its assumptions and estimates
on parameters available when the consolidated financial statements
were prepared. Existing circumstances and assumptions about future
developments, however, may change due to market changes or
circumstances arising beyond the control of the Group. Such changes
are reflected in the assumptions when they occur.
Exploration and evaluation expenditure
The application of the Group's accounting policy for exploration
and evaluation expenditure requires judgement in determining
whether future economic benefits will arise either from future
exploitation or sale or where activities have not reached a stage
which permits a reasonable assessment of the existence of reserves.
The determination of a Joint Ore Reserves Committee (JORC) resource
is itself an estimation process that requires varying degrees of
estimation depending on sub-classification and these estimates
directly impact the point of deferral of exploration and evaluation
expenditure. The deferral policy requires management to make
certain estimates and assumptions about future events or
circumstances, in particular whether an economically viable
extraction operation can be established. Estimates and assumptions
made may change if new information becomes available. If, after
expenditure is capitalised, information becomes available
suggesting that the recovery of expenditure is unlikely, the amount
capitalised is written off in the consolidated statement of
comprehensive income in the period when the new information becomes
available. Exploration and evaluation assets are carried at
historical cost less any impairment losses recognised. (Please
refer to Note 11 for further details).
1.5 New standards and amendments and interpretations adopted by the Group
There are a number of new Accounting standards and
interpretations issued by the AASB that are not yet mandatorily
applicable to the Group and have not been applied in preparing
these consolidated financial statements. The Group does not plan to
adopt these standards early.
These standards are not expected to have a material impact on
the Group in the current or future reporting periods.
1.6 Summary of significant accounting policies
Exploration and evaluation assets
It is the Group's policy to capitalise the cost of acquiring
rights to explore areas of interest. All other exploration and
evaluation expenditure is expensed to the statement of profit or
loss and other comprehensive income.
The costs of acquisition are carried forward as an asset
provided the rights to the areas of interest are current and one of
the following conditions are met:
-- Such costs are expected to be recouped through the successful
development and exploitation of the area of interest, or
alternatively, by its sale; or
-- Exploration activities in the area of interest have not yet
reached a stage which permits a reasonable assessment of the
existence of otherwise of recoverable reserves, and active and
significant operations in relation to the area are continuing.
When the technical feasibility and commercial viability of
extracting a mineral resource have been demonstrated then any
capitalised exploration and evaluation expenditure is reclassified
as capitalised mine development. Prior to reclassification,
capitalised exploration and evaluation expenditure is assessed for
impairment.
Impairment
An impairment exists when the carrying amount of an asset or
cash-generating unit exceeds its estimated recoverable amount. Any
impairment losses are recognised in the statement of profit or loss
and other comprehensive income.
The carrying value of capitalised exploration and evaluation
expenditure is assessed for impairment at the cash generating unit
level whenever facts and circumstances (from an impairment review)
suggest that the carrying amount of the asset may exceed its
recoverable amount.
Impairment reviews for exploration and evaluation costs are
carried out on a project-by-project basis, as each project has the
potential to be an economically viable cash generating unit. An
impairment review is undertaken when indicators of impairment arise
but normally when one of the following conditions applies:
-- unexpected geological occurrences render a deposit uneconomic
-- title to an asset is compromised
-- variations in commodity prices render the project uneconomic
-- variations in the currency of operation
-- variations to the fiscal and tax legislation in the country of operation.
Property, plant and equipment
Plant and equipment are shown at cost less accumulated
depreciation and impairment losses. The initial cost of an asset
comprises its purchase price or construction cost, any costs
directly attributable to bringing the asset into operation, any
incidental cost of purchase, and associated borrowing costs. The
purchase price or construction cost is the aggregate amount paid
and the fair value of any other consideration given to acquire the
asset. Directly attributable costs include employee benefits,
professional fees and costs of testing whether the asset is
functioning properly. Capitalised borrowing costs include those
that are directly attributable to the construction of mining and
infrastructure assets.
Property, plant and equipment relate to plant, machinery,
fixtures and fittings and are shown at historical cost less
accumulated depreciation and impairment losses.
The depreciation rates applied to each type of asset are as
follows:
Plant and machinery 10%
Motor Vehicles 15%
Fixtures and fittings 10-20%
Lease Improvements 5 years
Subsequent expenditure is capitalised when it is probable that
future economic benefits from the use of the asset will be
increased. All other subsequent expenditure is recognised as an
expense in the period in which it is incurred. Assets that are
replaced and have no future economic benefit are derecognised and
expensed through profit or loss. Repairs and maintenance which
neither materially add to the value of assets nor appreciably
prolong their useful lives are charged against income. Gains/
losses on the disposal of fixed assets are credited/charged to
income. The gain or loss is the difference between the net disposal
proceeds and the carrying amount of the asset.
The asset's residual values, useful lives and methods of
depreciation are reviewed at each reporting period, and adjusted
prospectively if appropriate.
Inventories
Inventories are valued at the lower of cost and net realisable
value.
Financial instruments: initial recognition and measurement
Trade and other receivables
Trade and other receivables are stated at amortised cost less
provision for doubtful debts. Trade and other receivables are
non-derivative financial assets with fixed or determinable payments
that are not quoted in an active market.
Trade receivables are generally due for settlement between 30
and 90 days. They are presented as current assets unless collection
is not expected for more than 12 months after reporting date.
Collectability of trade receivables is reviewed on an ongoing
basis. Debts which are known to be uncollectible are written off by
reducing the carrying amount directly. A provision for impairment
of trade receivables is used when there is objective evidence that
the Group will not be able to collect all amounts due according to
the original terms of the receivables.
Cash and cash equivalents
Cash and cash equivalents are measured at fair value, based on
the relevant exchange rates at balance sheet date. Cash and cash
equivalents comprise cash, cash at hand and short-term deposit
amounts with original maturity of less than three months. For the
purpose of the consolidated statement of cash flows, cash and cash
equivalents consist of cash and cash equivalents as defined above,
net of outstanding bank overdrafts.
Impairment
The Group assesses at each reporting date whether there is any
objective evidence that a financial asset is impaired. A financial
asset is deemed to be impaired if there is objective evidence of
impairment as a result of one or more events that has occurred
after the initial recognition of the asset (a loss event) and that
loss event has an impact on the estimated future cash flows of the
financial asset that can be reliably estimated.
Trade and other payables
Trade and other payables are non-derivative financial
liabilities that are not quoted in an active market. It represents
liabilities for goods and services provided to the Group prior to
the year end and which are unpaid. These amounts are unsecured and
have 7-30 day payment terms. Trade and other payables are presented
as current liabilities unless payment is not during within 12
months from the reporting date. They are recognised initially at
their fair value and subsequently measured at amortised cost using
the effective interest method.
Interest-bearing loans and borrowings
Interest-bearing loans and borrowings are recognised initially
at fair value, net of transaction costs incurred. Borrowings are
subsequently carried at amortised cost using the effective interest
(EIR) method. The fair value implies the rate of return on the debt
component of the facility. This rate of return reflects the
significant risks attaching to the facility from the lenders'
perspective.
Amortised cost is calculated by taking into account any discount
or premium on acquisition and fees or costs that are an integral
part of the EIR. The EIR amortisation is included in finance income
in profit or loss.
Borrowing costs directly attributable to the acquisition,
construction or production of an asset that necessarily takes a
substantial period of time to get ready for its intended use or
sale are capitalised as part of the cost of the respective assets.
All other borrowing costs are expensed in the period they occur.
Borrowing costs consist of interest and other costs that an entity
incurs in connection with the borrowing of funds e.g. arrangement
fees.
The Group capitalises borrowing costs for all eligible assets.
Where funds are borrowed specifically to finance the project, the
amount capitalised represents the actual borrowing costs incurred.
Early repayment of borrowings, specifically for reasons of
refinancing do not qualify for capitalising as borrowing costs
under IAS 23 and are recognised as a loss on de-recognition in the
statement of comprehensive income.
Fair value of financial instruments
The following methods and assumptions are used to estimate the
fair values:
-- Cash and short-term deposits, trade and other receivables,
trade and other payables and other current liabilities approximate
their carrying amounts largely due to the short-term maturities of
these instruments.
-- Initial fair value of interest-bearing borrowings is normally
the transaction price, i.e. the fair value of the consideration
received. When part of the consideration is for something other
than the loan, the fair value is estimated using an appropriate
valuation technique.
-- For disclosure purpose only, the fair value of unquoted
instruments, such as loans and other financial liabilities, is
estimated by discounting future cash flows using rates currently
available for debt on similar terms, credit risk and remaining
maturities.
Provisions
Provisions are measured at the present value of management's
best estimate of the expenditure required to settle the present
obligation at the end of the reporting period. The discount rate
used to determine the present value is a pre-tax amount that
reflects current market assessments of the time value of money, and
the risks specific to the liability. The increase in the provision
due to the passage of time is recognised as interest expense.
Finance income
Interest income is made up of interest received on cash and cash
equivalents.
Deferred taxation
Deferred income tax is provided using the balance sheet method
on temporary differences at the reporting date between the tax
bases of assets and liabilities and their carrying amounts for
financial reporting purposes.
Deferred income tax liabilities are recognised for all taxable
temporary differences.
Deferred income tax assets are recognised for all deductible
temporary differences, carry forward of unused tax credits and
unused tax losses, to the extent that it is probable that taxable
profit will be available against which the deductible temporary
differences, and the carry forward of unused tax credits and unused
tax losses, can be utilised, except:
-- In respect of deductible temporary differences associated
with investments in subsidiaries, deferred income tax assets are
recognised only to the extent that it is probable that the
temporary differences will reverse in the foreseeable future and
taxable profit will be available against which the temporary
differences can be utilised.
The carrying amount of deferred income tax assets is reviewed at
the end of each reporting period and reduced to the extent that it
is no longer probable that sufficient taxable profit will be
available to allow all or part of the deferred income tax asset to
be utilised. Unrecognised deferred income tax assets are reassessed
at the end of each reporting period and are recognised to the
extent that it has become probable that future taxable profit will
be available to allow the deferred tax asset to be recovered.
Deferred income tax assets and liabilities are measured at the
tax rates that are expected to apply to the year when the asset is
realised or the liability is settled, based on tax rates (and tax
laws) that have been enacted or substantively enacted by the end of
the reporting period.
Deferred income tax assets and deferred income tax liabilities
are offset if a legally enforceable right exists to set off current
tax assets against current income tax liabilities and the deferred
income taxes relate to the same taxable entity and the same
taxation authority.
Foreign currencies
i) Functional and presentation currency
The consolidated financial statements are presented in US
dollars, which is the Group's presentation currency.
ii) Transaction and Balances
Transactions in foreign currencies are initially recorded in the
functional currency at the respective functional currency rates
prevailing at the date of the transaction. Monetary assets and
liabilities denominated in foreign currencies are retranslated at
the spot rate of exchange ruling at the reporting date. All
differences are taken to the profit or loss, should specific
criteria be met.
Non-monetary items that are measured in terms of historical cost
in a foreign currency are translated using the exchange rate as at
the date of the initial transaction. Non-monetary items measured at
fair value in a foreign currency are translated using the exchange
rates at the date when the fair value was determined.
iii) Group Companies
The results and financial position of foreign operations (none
of which has the currency of a hyperinflationary economy) that have
a functional currency different from the presentation currency are
translated into the presentation currency as follows:
-- Assets and liabilities for each statement of financial
position presented as translated at the closing rate at the date of
the statement of financial position.
-- Income and expenses for each income statement and statement
of profit or loss and other comprehensive income are translated at
average exchange rates (unless this is not a reasonable
approximation of the cumulative effect of the rates prevailing on
the transactions dates, in which case income and expenses are
translated at the dates of the transactions), and
-- All resulting exchange differences are recognised in other comprehensive income
Revenue Recognition
Revenue is measured at the fair value of the consideration
received or receivable.
The Group recognises when the amount of revenue can be reliably
measured, it is probably that future economic benefits will flow to
the entity and specific criteria have been met as described
below.
i) Interest Income
Interest income is recognised using the effective interest
method. When a receivable is impaired, the Group reduces the
carrying amount to its recoverable amount, being the estimated
future cash flow discounted at the original effective interest rate
of the instrument, and continues unwinding the discount as interest
income.
ii) Sale of Goods
Revenue from sale of goods is recognised at the point of
delivery as this corresponds to the transfer of significant risks
and rewards of ownership of the goods and the cessation of all
involvement in those goods.
2. Net Operating Expenses
6 months 6 months
ended ended
30 June 30 June
2017 USD$'000 2016
USD$'000
(Unaudited) (Unaudited)
Continuing operations
Depreciation of property
plant and equipment 72 69
Amortisation expenses 66 -
Cost of goods Sold 6 11
Occupancy costs 58 61
Employee costs 263 241
General expenses 61 160
Advertising and promotion
expenses 6 37
Exploration expenses 301 146
Admin expenses 67 285
Lease expenses 1 1
Travel expenses 3 7
--------------- -------------
904 1,018
--------------- -------------
3. Key Management Personnel
6 months 6 months
ended ended
30 June 30 June
2017 USD$'000 2016
USD$'000
(Unaudited) (Unaudited)
Directors' emoluments 80 155
Superannuation 7 10
4. Employee costs
6 months 6 months
ended ended
30 June 30 June
2017 USD$'000 2016
USD$'000
(Unaudited) (Unaudited)
Wages and salaries 175 202
Superannuation 8 14
Other employee costs 9 25
Total 192 241
--------------- -------------
5. Earnings per share
6 months 6 months
ended ended
30 June 30 June
2017 USD$'000 2016
USD$'000
(Unaudited) (Unaudited)
Loss for the period attributable
to members of the parent (756) (936)
Basic loss per share is calculated by
dividing the loss attributable
to owners of the Parent by the weighted
average number of ordinary
share in issue during the period.
Basic weighted average
number of ordinary shares
in issue 6,330,172,603 2,219,420,481
Basic loss per share-cents (0.01) (0.04)
Diluted loss per share-cents (0.01) (0.04)
6. Segment Reporting
The consolidated entity's operating segments have been
determined with reference to the monthly management accounts used
by the chief operating decision maker to make decisions regarding
the consolidated entity's operations and allocation of working
capital.
Due to the size and nature of the consolidated entity, the Board
as a whole has been determined as the chief operating decision
maker.
The consolidated entity operates in one business segment and one
geographical segment, namely mineral exploration industry in Sierra
Leone.
The revenues and results of this segment are those of the
consolidated entity as a whole and are set out in the statement of
profit and loss and other comprehensive income. The segment assets
and liabilities of this segment are those of the consolidated
entity and are set out in the Statement of Financial Position.
7. Cash and Cash Equivalents
6 months Year
ended ended
30 June 31 December
2017 USD$'000 2016
(Unaudited) USD$'000
(Audited)
Current accounts 181 376
There are no restrictions on the cash currently held by the
Group.
8. Trade and Other Receivables
6 months Year
ended ended
30 June 31 December
2017 USD$'000 2016
(Unaudited) USD$'000
(Audited)
Trade receivables 3 -
Prepayments 112 40
Total receivables 115 40
--------------- -------------
Prepayments for the period ended 30 June 2017 relate to payments
made in advance for services from the AIM Nominated Adviser and
Broker as well as legal retainer for Golden Saint Resources
(Africa) Ltd.
9. Inventories
6 months Year ended
ended 31 December
30 June 2016
2017 USD$'000
(Unaudited) USD$'000
(Audited)
Opening stock 306 331
Cost of diamond
sales (6) (25)
--------------- -------------
Total stock 300 306
--------------- -------------
Inventories consist of 97.15 carat of cut, gem quality diamonds
and 70.74 of uncut industrial use grade diamonds that have since
been exported from Sierra Leone.
10. Property, Plant and Equipment
Plant Furniture Lease Motor Total
and and Improvements Vehicles
Machinery Fixtures
US US $'000 US $'000 US $'000 US
$'000 $'000
Period 1 January
2017 to 30 June
2017
Opening net book
value 994 31 4 48 1,077
Additions 2 - - 20 22
Disposals - - - - -
Depreciation
charge (62) (3) (1) (6) (72)
Closing net book
value at 30 June
2016 934 28 3 62 1,027
------------ ---------- -------------- ---------- -------
At 30 June 2017
Cost 1,221 56 8 95 1,380
Accumulated depreciation (287) (28) (5) (33) (353)
------------ ---------- -------------- ---------- -------
Net book value
at 30 June 2017 934 28 3 62 1,027
------------ ---------- -------------- ---------- -------
Additions to furniture and fixtures comprise of renovation of
Sierra Leone office.
Plant Furniture Lease Motor Total
and and Improvements Vehicles
Machinery Fixtures
US US $'000 US $'000 US $'000 US
$'000 $'000
Period 1 January
2016 to 31 December
2016
Opening net book
value 1,107 31 6 33 1,177
Additions 8 7 - 24 39
Disposals - (1) - - (1)
Depreciation
charge (121) (6) (2) (9) (138)
Closing net book
value 994 31 4 48 1,077
----------- ---------- -------------- ---------- -------
At 31 December
2016
Cost 1,219 56 8 75 1,358
Accumulated depreciation (225) (25) (4) (27) (281)
----------- ---------- -------------- ---------- -------
Net book value
at 31 Dec 2016 994 31 4 48 1,077
----------- ---------- -------------- ---------- -------
11. Exploration and Evaluation Assets
Mineral Total
Exploration
Licences
Cost
As at 1 January 2017 132 132
Additions - -
------------- ------
As at 30 June 2017 132 132
Provision for Amortisation
and Impairment
As at 1 January 2017 - -
Amortisation charge 66 -
for the period
------------- ------
As at 30 June 2017 66 -
Net book value
------------- ------
As at 30 June 2017 66 132
------------- ------
The board of directors regularly assesses the potential of each
mineral licence.
Mineral Total
Exploration
Licences
Cost
As at 1 January 2016 98 98
Additions 34 34
------------- ------
As at 31 December
2016 132 132
Provision for Amortisation
and Impairment
As at 1 January 2016 - -
Amortisation charge - -
for the period
------------- ------
As at 31 December - -
2016
Net book value
------------- ------
As at 31 December
2016 132 132
------------- ------
12. Intangible Assets
Trade Total
Mark
Opening net book
value as at 1 January
2017 6 6
Additions - -
Amortisation charge - -
------ ------
Closing net book
value as at 30 June
2017 6 6
------ ------
There was no impairment during the period to 30 June 2017.
Trade Total
Mark
Opening net book
value as at 1 January
2016 6 6
Additions - -
Amortisation charge - -
------ ------
Closing net book
value as at 31 December
2016 6 6
------ ------
13. Subsidiaries
Details of the Company's subsidiaries at 30 June 2017 are as
follows:
Name of Subsidiary Place Proportion Proportion
of Incorporation of Ownership of Voting
Interest Power
Golden Saint
Resources (Australia)
Pty Ltd Australia 100 100
Golden Saint
Resources (Africa) Sierra
Ltd Leone 75 75
Golden Saint
Diamonds Pte
Ltd Singapore 100 100
Golden Saint
Diamonds (SL) Sierra
Limited Leone 75 75
14. Taxation
Unrecognised tax losses
Where the realisation of deferred tax assets is dependent on
future taxable profits, losses carried forward are recognised only
to the extent that business forecasts predict that such profits
will be available to the companies in which losses arose.
The parent, Golden Saint Resources Ltd, is not liable to
corporation tax in BVI, so it has no provision for deferred tax.
However, Golden Saint Resources (Australia) Pty Ltd is liable to
tax in Australia and Golden Saint Resources (Africa) Ltd is liable
to tax in Sierra Leone, so potential deferred tax in respect of
those companies is noted as follows:
For the six months ended 30 June 2017, GSR (Australia) Pty Ltd
had losses of USD 138,805, while GSR Africa had losses of USD
585,079 upon which deferred tax assets are not recognised. These
losses are available indefinitely for offset against future taxable
profits.
15. Share Capital and Reserves
The share capital of the Company is denominated in UK Pounds
Sterling. Each allotment during the period was then translated into
the Group's functional currency, US Dollars at the spot rate on the
date of issue.
Number USD $
of Shares
Authorised
Ordinary shares 2,904,457,570
Issued and Fully Paid -
Common Shares
At 31 December 2013 420,172,001 48,753,609
Issued during the period - -
1 January 2014 to 30 June
2014
At 30 June 2014 420,172,001 48,753,609
Issued during the period
1 July 2014 to 31 December
2014 60,124,397 1,326,007
At 31 December 2014 480,296,398 50,079,616
Issued during the period
1 January 2015 to 30 June
2015 639,946,772 2,119,902
At 30 June 2015 1,120,243,170 52,199,518
Issued during the period
1 July 2015 to 31 December
2015 1,006,785,674 660,195
At 31 December 2015 2,127,028,884 52,859,713
Issued during the period
1 January 2016 to 30 June
2016 2,374,694,364 1,825,971
At 30 June 2016 4,501,723,248 54,685,684
Issued during the period
1 July 2016 to 31 December
2016 1,333,333,333 497,632
At 31 December 2016 5,835,056,581 55,077,271
Issued during the period
1 January 2017 to 30 June
2017 2,987,200,001 812,370
At 30 June 2017 8,822,256,582 55,868,865
Reserves
Balances held in Foreign Currency Reserve
relate to unrealised foreign exchange
gain/loss that arises when converting
the group entities at the balance sheet
date of 30 June 2017.
Balances held in Merger Reserve represent
the excess of consideration paid for
GSR Africa over the fair value of net
assets acquired.
6 months Year
ended ended
30 June 31 December
2017 2016
USD$'000
(Unaudited) USD$'000
(Audited)
Foreign Currency Translation
Reserve
At Start of Period (147) (100)
Movement during the period 12 (47)
--------------
At End of Period (135) (147)
-------------- -------------
Merger Reserve
At Start of Period (42,647) (42,647)
Movement during the period - -
-------------- -------------
At End of Period (42,647) (42,647)
-------------- -------------
TOTAL RESERVES
At Start of Period (42,794) (42,747)
Movement during the period 12 (47)
-------------- -------------
At End of Period (42,782) (42,794)
-------------- -------------
16. Non-Controlling Equity Interest
6 months 6 months Year ended
ended ended 31 December
30 June 30 June 2016
2017 USD$'000 2016 USD$'000
(Unaudited) (Unaudited) USD$'000
(Audited)
Balance brought
forward from prior
period (834) (621) (621)
Share of losses
in period (147) (90) (213)
---------------
(981) (711) (834)
--------------- --------------- -------------
On 1 July 2013, the Group acquired a 75% interest in Golden
Saint Resources (Africa) Ltd. At this date, the Group recognised a
non-controlling interest of USD $21,646, which represented the
non-controlling interest's share of net assets in Golden Saint
Resources (Africa) Ltd at that date.
As at 30 June 2017, the non-controlling interest's share of
losses in Golden Saint Resources (Africa) Ltd was USD 147,000.
17. Trade and Other Payables
6 months Year ended
ended 31 December
30 June 2016
2017
USD$'000
(Unaudited) USD$'000
(Audited)
Trade payables 5 124
Accruals 9 7
Other payables 71 103
Total accruals 85 234
------------- -------------
Trade payables are non-interest bearing and are normally settled
on 60 day terms.
Accruals relate to salaries & wages and exploration
expenses.
Other payables relate to superannuation and tax withheld from
salaries payable to the tax office.
18. Commitments and Contingencies
The Group is subject to the following commitments in the 2017
financial year on their exploration sites: Baja USD$350,000, Tongo
USD$350,000, and Moa USD$250,000.
Aside from those mentioned above, the Group is subject to no
commitments or contingent liabilities.
19. Financial Liabilities
6 months Year ended
ended 31 December
30 June 2016
2017
USD$'000
(Unaudited) USD$'000
(Audited)
Hire Purchase 7 12
Insurance Premiums 11 -
Total financial
liabilities 18 12
------------- -------------
20. Subsequent Events
-- Licence renewal applications for all three exploration
licences were approved on 19 July 2016 by the National Minerals
Authority ("NMA").
-- Capital raising on of GBP614,820 (before expenses) in September 2017 by way of a placing.
21. Related Party Transactions
During the period 1 January 2017 to 30 June 2017, commission
expenses totalling USD 70,831 (2016: GBP 34,900) were paid to Mr
Cyril D Silva (via his wholly owned consultancy company Clayhill
Capital Consultants Pty Ltd) in relation to services rendered on a
placing.
22. Financial risk management objectives and policies
The Group's activities expose it to a variety of financial
risks. The Group's Board provides certain specific guidance in
managing such risks, particularly as relates to credit and
liquidity risk. Any form of borrowings requires approval from the
Board and the Group does not currently use any derivative financial
instruments to manage its financial risks. The key financial risks
and the Group's major exposures are as follows:
Credit risk
The maximum exposure to credit risk is represented by the
carrying amount of the financial assets. In relation to cash and
cash equivalents, the Group limits its credit risk with regards to
bank deposits by only dealing with reputable banks. In relation to
sales receivables, the Group's credit risk is managed by credit
checks for credit customers and approval of letters of credit by
the Group's advising bank for offtake customers.
Foreign Currency Risk
Currency risk is the risk that the value of a financial
instrument will fluctuate due to changes in foreign exchange rates.
The table below indicates the currencies to which the Group had
significant exposure at 30 June 2017 on its monetary assets and
liabilities. The analysis calculates the effect of a reasonably
possible movement of the currency rate against the US dollar, with
all other variables held constant on the statement of comprehensive
income (due to the fair value of currency sensitive non-trading
monetary assets and liabilities). A positive amount in the table
reflects a potential net increase in the consolidated statement of
comprehensive income.
Currency 2017 Change Effect
Held USD$'000 in Currency on Statement
rate of Comprehensive
in 10% Income
British Pound
Sterling 66 +/-10 6.6
Australian
Dollar 14 +/-10 1.4
Singaporean
Dollar 3 +/-10 0.3
Sierra Leonean
Leone 0 +/-10 0
23. Liquidity risk
Liquidity risk is the risk that the Group will not be able to
meet its financial obligations as they fall due. Numbers in the
table below represent the gross, contractual, undiscounted amount
payable in relation to the financial liabilities.
The Group monitors its risk to a shortage of funds using a
combination of cash flow forecasts, budgeting and monitoring of
operational performance.
On Demand Less Three One TOTAL
USD$'000 than to twelve to five USD$'000
three months years
months USD$'000 USD$'000
USD$'000
As at 30
June 2017:
Trade and
other payables 84 5 12 1 102
24. Capital management
Capital includes equity attributable to the equity holders of
the parent. Refer to the statement of changes in equity for
quantitative information regarding equity.
The Group's primary objectives when managing capital are to
safeguard its ability to continue as a going concern in order to
provide returns for shareholders. For details of the capital
managed by the Group as at 30 June 2017, please see Note 15.
The Group is not subject to any externally imposed capital
requirements.
25. Interest rate risk
Interest rate risk is the risk that the fair value or future
cash flows of a financial instrument will fluctuate because of
changes in market interest rates. A sensitivity analysis is not
presented, as all borrowing costs have been capitalised as at 30
June 2017; therefore profit or loss and equity would have not been
affected by changes in the interest rate.
26. Parent Company Information (Golden Saint Resources Ltd)
6 months 6 months Year ended
ended ended 31 December
30 June 30 June 2016
2017 USD$'000 2016 USD$'000
(Unaudited) (Unaudited) USD$'000
(Audited)
Loss for the period 178 395 450
Balance Sheet 6 months 6 months Year ended
ended ended 31 December
30 June 30 June 2016
2017 USD$'000 2016 USD$'000
(Unaudited) (Unaudited) USD$'000
(Audited)
Current assets 8,231 7,280 7,656
Non-current assets 69,406 69,406 69,406
Equity 77,622 76,651 76,988
Current liabilities 15 35 71
Non-current liabilities - - -
A copy of the unaudited results for the six months ended 30 June
2017 is available on the Company's website
www.goldensaintresources.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR SESSUUFWSELU
(END) Dow Jones Newswires
September 29, 2017 06:13 ET (10:13 GMT)
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