TIDMHZM
RNS Number : 7178N
Horizonte Minerals PLC
11 August 2017
Horizonte Minerals plc / Index: AIM and TSX / Epic: HZM /
Sector: Mining
NEWS RELEASE
11 August 2017
INTERIM RESULTS
_____________________________________________________________________
Horizonte Minerals Plc, (AIM: HZM, TSX: HZM) ('Horizonte' or
'the Company') the nickel development company focused in Brazil,
announces its unaudited financial results for the six months ended
30 June 2017 and the Management Discussion and Analysis for the
same period.
Both of the above have been posted on the Company's website at
www.horizonteminerals.com and are also available on SEDAR at
www.sedar.com.
Chairman's Statement
The first half of 2017 has been focussed on the commencement of
the Feasibility Study for our Araguaia Nickel Project which we are
developing as Brazil's next ferro-nickel mine. This follows the
transaction with Glencore to acquire the adjacent Serra do Tapa
project, creating one of the largest and highest-grade nickel
saprolite projects globally, in a good mining jurisdiction and a
region with good infrastructure. Following significant progress
made to date this year, the Araguaia Feasibility Study is now at an
advanced stage with a number of the principal work streams over 50%
complete for a 14,500tpa ferro-nickel operation with a 28-year life
of mine.
Having completed a GBP9 million fundraise in December 2016,
which saw us add key strategic institutional investors to our share
register, we hit the ground running in January 2017 with the
appointment of a Feasibility Study Manager, Wagner Oliveira, who
has extensive ferro-nickel experience including being part of the
team that lead the design and construction of Anglo American's
Barro Alto ferronickel mine in Brazil. Key contracts have also been
awarded to several leading consultants including Worley Parsons,
Snowden Mining Industry Consultants, and Environmental Resources
Management (ERM), creating a strong team to deliver the Feasibility
Study.
During the period, a 30 hole pre-excavation drilling programme
was completed over the trial excavation site which successfully
confirmed the high-grade nature of the Araguaia ore and targeted an
area that would be representative of the first five to eight years
mine life. The trial excavation programme is nearing completion
which is targeting the removal of approximately 20,000 tonnes of
ore down to a depth of around 14 metres utilising two 35 tonne
excavators and four 35 tonne trucks. The results of this programme,
together with the high-grade drilling results will be fed into the
Feasibility Study which is on track to be delivered in Q4 2017 into
Q1 2018.
Progress has been made during the period by our sustainability
team at Araguaia with socio-economic activities progressing
positively. As a result, we will shortly be submitting the
documents for the Installation Licence which upon award will allow
mine construction to commence.
The Company held cash balances of GBP5.6m as at the end of
period, meaning we are fully funded to complete the Feasibility
Study and beyond.
Despite nickel prices hitting a new six-month low in April of
this year, Morgan Stanley and UBS have continued to highlight the
base metal as its preferred commodity for 2017. Unlike pricing for
other metals, which have recovered significantly from the levels
experienced during the lows of the mining cycle, nickel is yet to
catch up, and indeed until recently has continued to fall. This
presents investors, as Morgan Stanley analyst Menno Sanderse puts
it, "with an ideal opportunity to benefit from the recovery when it
takes place in the near future."
With the market moving into deficit after five years of
over-supply, the nickel price is currently on the rise, reaching a
near four-month high in July on renewed supply worries and higher
stainless steel prices, albeit from a lower level due to recent
political instability in the Philippines which caused the most
recent dive. In terms of drivers, nickel is primarily used in
stainless steel production, although an Electric Vehicle revolution
would add a new driver to the market considering Mr. Musk's
comments last year that his lithium ion batteries should be called
nickel-graphite batteries as there are c. 11kg contained nickel in
a 250kg EV battery. Indeed, Macquarie recently noted that "nickel
use in batteries could more than double over the next 10 years from
around 70kt to close to 160-170kt", although it is not expected to
overtake the stainless-steel market as the primary driver in the
mid-term.
As we move into the second half of 2017, Horizonte is well
positioned to take full advantage of the positive sentiment in the
nickel market as the Araguaia feasibility moves into the final
phase. The value of Araguaia, comprising high grade and resource
size will only increase as it is further de-risked. A Tier 1 asset
such as this will no doubt attract the attention of nickel
producers for whom the development pipeline is bare. Meanwhile we
look forward to updating you as we progress this project for
maximum benefit for our shareholders.
David Hall
Chairman
10 August 2017
Condensed Consolidated Interim Financial Statements for the six
months ended 30 June 2017
Condensed consolidated statement of comprehensive income
6 months ended 3 months ended
30 June 30 June
2017 2016 2017 2016
------------------------------------ ------ ------------ --------------------- ------------ ---------------------
Unaudited Unaudited (Restated) Unaudited Unaudited (Restated)
------------------------------------ ------ ------------ --------------------- ------------ ---------------------
Notes GBP GBP GBP GBP
------------------------------------ ------ ------------ --------------------- ------------ ---------------------
Continuing operations
Revenue - - - -
Cost of sales - - - -
------------------------------------ ------ ------------ --------------------- ------------ ---------------------
Gross profit - - - -
Administrative expenses (654,548) (385,028) (376,487) (200,938)
Charge for share options granted (78,810) (18,184) (28,424) (9,092)
Change in value of contingent
consideration 153,095 (148,706) 120,885 (109,008)
Gain/(Loss) on foreign exchange (245,553) 80,300 (141,613) 35,988
Other losses - Impairment of
available for sale assets - - - -
Loss from operations (825,816) (471,618) (425,639) (283,050)
Finance income 7,448 2,964 6,825 909
Finance costs (116,944) (110,409) (58,758) (55,204)
------------------------------------ ------ ------------ --------------------- ------------ ---------------------
Loss before taxation (935,312) (579,063) (477,572) (337,345)
Taxation - - - -
------------------------------------ ------ ------------ --------------------- ------------ ---------------------
Loss for the year from continuing
operations (935,312) (579,063) (477,572) (337,345)
==================================== ====== ============ ===================== ============ =====================
Other comprehensive income
Items that may be reclassified
subsequently to profit or loss
Change in value of available for
sale financial assets - - - -
Currency translation differences on
translating foreign operations (2,196,597) 9,018,737 (2,499,362) 4,903,938
------------------------------------ ------ ------------ --------------------- ------------ ---------------------
Other comprehensive income for
the period, net of tax (2,196,597) 9,018,737 (2,499,362) 4,903,938
------------------------------------ ------ ------------ --------------------- ------------ ---------------------
Total comprehensive income for the
period
attributable to equity holders of
the Company (3,131,909) 8,439,674 (2,976,934) 4,566,593
------------------------------------ ------ ------------ --------------------- ------------ ---------------------
Earnings per share from continuing
operations attributable to the
equity holders of the Company
Basic and diluted (pence per share) 9 (0.080) (0.086) (0.041) (0.036)
Condensed consolidated statement of financial position
30 June 31 December
2017 2016
Unaudited Audited
--------------------------- ------ ------------- -------------
Notes GBP GBP
--------------------------- ------ ------------- -------------
Assets
Non-current assets
Intangible assets 6 32,517,929 32,017,796
Property, plant
& equipment 264 862
32,518,193 32,018,658
--------------------------- ------ ------------- -------------
Current assets
Trade and other
receivables 36,286 35,493
Cash and cash equivalents 5,655,064 9,317,781
--------------------------- ------ ------------- -------------
5,691,350 9,353,274
--------------------------- ------ ------------- -------------
Total assets 38,209,543 41,371,932
=========================== ====== ============= =============
Equity and liabilities
Equity attributable
to owners of the
parent
Issued capital 7 11,719,343 11,719,343
Share premium 7 35,747,912 35,767,344
Other reserves 2,270,467 4,467,064
Accumulated losses (15,755,799) (14,899,297)
--------------------------- ------ ------------- -------------
Total equity 33,981,923 37,054,454
--------------------------- ------ ------------- -------------
Liabilities
Non-current liabilities
Contingent consideration 3,606,891 3,643,042
Deferred tax liabilities 263,143 282,450
--------------------------- ------ ------------- -------------
3,870,034 3,925,492
--------------------------- ------ ------------- -------------
Current liabilities
Trade and other
payables 357,586 391,986
--------------------------- ------ ------------- -------------
391,986
--------------------------- ------ ------------- -------------
Total liabilities 4,227,620 4,317,478
--------------------------- ------ ------------- -------------
Total equity and
liabilities 38,209,543 41,371,932
=========================== ====== ============= =============
Condensed statement of changes in shareholders' equity
Attributable to the owners of the
parent
-------------------------------------------------------------------
Share Share Accumulated Other
capital premium losses reserves Total
GBP GBP GBP GBP GBP
--------------------- ----------- ----------- ------------- ------------ ------------
As at 1 January
2016 (Restated) 6,712,044 31,252,708 (13,477,853) (4,848,116) 19,638,783
--------------------- ----------- ----------- ------------- ------------ ------------
Comprehensive
income
Loss for
the period - - (579,063) - (579,063)
Other comprehensive
income
Impairment - - - - -
of available
for sale
assets
Currency
translation
differences - - - 9,018,737 9,018,737
--------------------- ----------- ----------- ------------- ------------ ------------
Total comprehensive
income - - (579,063) 9,018,737 8,439,674
--------------------- ----------- ----------- ------------- ------------ ------------
Transactions
with owners
Share based
payments - - 18,184 - 18,184
--------------------- ----------- ----------- ------------- ------------ ------------
Total transactions
with owners - - 18,184 - 18,184
As at 30
June 2016
(unaudited)
(Restated) 6,712,044 31,252,708 (14,038,732) 4,170,621 28,096,641
===================== =========== =========== ============= ============ ============
Attributable to the owners of the
parent
-------------------------------------------------------------------
Share Share Accumulated Other
capital premium losses reserves Total
GBP GBP GBP GBP GBP
--------------------- ----------- ----------- ------------- ------------ ------------
As at 1 January
2017 11,719,343 35,767,344 (14,899,297) 4,467,064 37,054,454
--------------------- ----------- ----------- ------------- ------------ ------------
Comprehensive
income
Loss for
the period - - (935,312) (935,312)
Other comprehensive
income
Impairment - - -
of available
for sale
assets
Currency
translation
differences - - - (2,196,597) (2,196,597)
--------------------- ----------- ----------- ------------- ------------ ------------
Total comprehensive
income - - (935,312) (2,196,597) (3,131,909)
--------------------- ----------- ----------- ------------- ------------ ------------
Transactions
with owners
Share based
payments - - 78,810 - 78,810
--------------------- ----------- ----------- ------------- ------------ ------------
Share issue
costs - (19,432) - - (19,432)
--------------------- ----------- ----------- ------------- ------------ ------------
Total transactions
with owners - (19,432) 78,810 - 59,378
As at 30
June 2017
(unaudited) 11,719,343 35,747,912 (15,755,799) 2,270,467 33,981,923
===================== =========== =========== ============= ============ ============
Condensed Consolidated Statement of Cash Flows
6 months ended 3 months ended
30 June 30 June
----------------------------------------------------- -------------------------- --------------------------
2017 2016 2017 2016
----------------------------------------------------- ------------ ------------ ------------ ------------
Unaudited Unaudited Unaudited Unaudited
(Restated) (Restated)
----------------------------------------------------- ------------ ------------ ------------ ------------
GBP GBP GBP GBP
Cash flows from operating activities
Loss before taxation (935,312) (579,063) (477,572) (337,345)
Interest income (7,448) (2,964) (6,825) (909)
Finance costs 116,944 110,409 58758 55,204
Exchange differences 245,553 (80,300) 141,613 (35,988)
Employee share options charge 78,810 18,184 28,424 9,092
Change in fair value of contingent consideration (153,095) 148,706 (120,885) 109,008
Depreciation 234 579 75 294
------------------------------------------------------ ------------ ------------ ------------ ------------
Operating loss before changes in working capital (654,314) (384,449) (376,412) (200,644)
Decrease/(increase) in trade and other receivables (793) 18,657 12,800 5,723
(Decrease)/increase in trade and other payables (252,149) (43,028) 24,812 3,842
------------------------------------------------------ ------------ ------------ ------------ ------------
Net cash outflow from operating activities (907,256) (408,820) (338,800) (191,079)
====================================================== ============ ============ ============ ============
Cash flows from investing activities
Purchase of intangible assets (2,497,924) (751,986) (1,664,272) (359,011)
Proceeds from sale of property, plant and equipment - - - -
Interest received 7,448 2,964 6,825 909
------------------------------------------------------ ------------ ------------ ------------ ------------
Net cash used in investing activities (2,490,476) (749,022) (1,657,447) (358,102)
------------------------------------------------------ ------------ ------------ ------------ ------------
Cash flows from financing activities
Issue of shares - - - -
Share issue costs (19,432) - - -
----------------------------------------------------- ------------ ------------ ------------ ------------
Net cash used in financing activities (19,432) - - -
----------------------------------------------------- ------------ ------------ ------------ ------------
Net decrease in cash and cash equivalents (3,417,164) (1,157,842) (1,996,247) (549,181)
Cash and cash equivalents at beginning of period 9,317,781 2,738,905 7,792,924 2,173,055
Exchange gain/(loss) on cash and cash equivalents (245,553) 79,131 (141,613) 36,320
------------------------------------------------------ ------------ ------------ ------------ ------------
Cash and cash equivalents at end of the period 5,655,064 1,660,194 5,655,064) 1,660,194
====================================================== ============ ============ ============ ============
Notes to the Financial Statements
1. General information
The principal activity of the Company and its subsidiaries
(together 'the Group') is the exploration and development of
precious and base metals. There is no seasonality or cyclicality of
the Group's operations.
The Company's shares are listed on the Alternative Investment
Market of the London Stock Exchange (AIM) and on the Toronto Stock
Exchange (TSX). The Company is incorporated and domiciled in the
United Kingdom. The address of its registered office is 26 Dover
Street London W1S 4LY.
2. Basis of preparation
The condensed consolidated interim financial statements have
been prepared using accounting policies consistent with
International Financial Reporting Standards and in accordance with
International Accounting Standard 34 Interim Financial Reporting.
The condensed interim financial statements should be read in
conjunction with the annual financial statements for the year ended
31 December 2016, which have been prepared in accordance with
International Financial Reporting Standards (IFRS) as adopted by
the European Union.
The condensed consolidated interim financial statements set out
above do not constitute statutory accounts within the meaning of
the Companies Act 2006. They have been prepared on a going concern
basis in accordance with the recognition and measurement criteria
of International Financial Reporting Standards (IFRS) as adopted by
the European Union. Statutory financial statements for the year
ended 31 December 2016 were approved by the Board of Directors on
16 March 2017 and delivered to the Registrar of Companies. The
report of the auditors on those financial statements was
unqualified.
The condensed consolidated interim financial statements of the
Company have not been audited or reviewed by the Company's auditor,
BDO LLP.
Going concern
The Directors, having made appropriate enquiries, consider that
adequate resources exist for the Group to continue in operational
existence for the foreseeable future and that, therefore, it is
appropriate to adopt the going concern basis in preparing the
condensed consolidated interim financial statements for the period
ended 30 June 2017.
Risks and uncertainties
The Board continuously assesses and monitors the key risks of
the business. The key risks that could affect the Group's medium
term performance and the factors that mitigate those risks have not
substantially changed from those set out in the Group's 2016 Annual
Report and Financial Statements, a copy of which is available on
the Group's website: www.horizonteminerals.com and on Sedar:
www.sedar.com The key financial risks are liquidity risk, foreign
exchange risk, credit risk, price risk and interest rate risk.
Critical accounting estimates
The preparation of condensed consolidated interim financial
statements requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the end of the
reporting period. Significant items subject to such estimates are
set out in note 4 of the Group's 2016 Annual Report and Financial
Statements. The nature and amounts of such estimates have not
changed significantly during the interim period.
Prior period restatement
As clearly set out in the 2016 audited annual report and the
accompanying management discussion and analysis, which can be found
on the company's website and also filed on Sedar, the company
restated certain prior year numbers for the year ended 2015 and
before. The result of this and applying a consistent methodology
means that the 2016 quarterly information has been restated in line
with the revised assumptions. These quarterly condensed unaudited
financial statements have been restated to reflect the amended
figures for the quarter ended 30 June 2016. The figures for 30 June
2017 are not affected.
3. Significant accounting policies
The condensed consolidated interim financial statements have
been prepared under the historical cost convention as modified by
the revaluation of certain of the subsidiaries' assets and
liabilities to fair value for consolidation purposes.
The same accounting policies, presentation and methods of
computation have been followed in these condensed consolidated
interim financial statements as were applied in the preparation of
the Group's Financial Statements for the year ended 31 December
2016.
4. Segmental reporting
The Group operates principally in the UK and Brazil, with
operations managed on a project by project basis within each
geographical area. Activities in the UK are mainly administrative
in nature whilst the activities in Brazil relate to exploration and
evaluation work. The reports used by the chief operating decision
maker are based on these geographical segments.
2017 UK Brazil Total
6 months 6 months 6 months
ended ended ended
30 June 30 June 30 June
2017 2017 2017
GBP GBP GBP
-------------------------- ------------ ------------ ------------
Revenue
-------------------------- ------------ ------------ ------------
Administrative expenses (424,914) (229,634) (654,548)
Profit on foreign
exchange (224,641) (20,912) (245,553)
(Loss) from operations
per reportable segment (649,555) (250,546) (906,101)
Inter segment revenues - - -
Depreciation charges (234) - (234)
Additions and foreign
exchange movements
to non-current assets - 519,276 519,276
Reportable segment
assets 5,631,052 32,578,490 38,209,543)
Reportable segment
liabilities 3,623,391 604,229 4,227,620
2016 UK Brazil Total
6 months 6 months 6 months
ended ended ended
30 June 30 June 30 June
2016 2016 2016
GBP GBP GBP
(Restated) (Restated) (Restated)
-------------------------- ------------ ------------ ------------
Revenue - - -
-------------------------- ------------ ------------ ------------
Administrative expenses (256,251) (128,777) (385,028)
(Loss) on foreign
exchange 63,320 16,980 80,300
(Loss) from operations
per reportable segment (192,931) (111,797) (304,728)
Inter segment revenues - 567,589 567,589
Depreciation charges (519) (61) (579)
Additions and foreign
exchange movements
to non-current assets - 8,175,863 8,175,863
Reportable segment
assets 1,635,604 33,249,296 34,884,900
Reportable segment
liabilities 5,848,311 2,220,821 8,069,132
2017 UK Brazil Total
3 months 3 months 3 months
ended ended ended
30 June 30 June 30 June
2017 2017 2017
GBP GBP GBP
---------------------------- ---------- ---------- ----------
Revenue
---------------------------- ---------- ---------- ----------
Administrative expenses (272,223) (104,264) (376,487)
Profit on foreign exchange (121,113) (20,501) (141,613)
(Loss) from operations
per (393,336) (124,765) (518,100)
reportable segment
---------------------------- ---------- ---------- ----------
Inter segment revenues - -
Depreciation charges (75) - (75)
Additions and foreign
exchange movements
to non-current assets - (648,305) (648,305)
2016 UK Brazil Total
3 months 3 months 3 months
ended ended ended
30 June 30 June 30 June
2016 2016 2016
GBP GBP GBP
(Restated) (Restated) (Restated)
---------------------------- ------------ ------------ ------------
Revenue - - -
---------------------------- ------------ ------------ ------------
Administrative expenses (113,961) (86,977) (200,938)
(Loss) on foreign exchange 25,808 10,180 35,988
(Loss) from operations
per (88,153) (76,797) (164,950)
reportable segment
---------------------------- ------------ ------------ ------------
Inter segment revenues - 327,101 327,101
Depreciation charges (259) (35) (294)
Additions and foreign
exchange movements
to non-current assets - 4,818,164 4,818,164
A reconciliation of adjusted loss from operations per reportable
segment to loss before tax is provided as follows:
6 months 6 months 3 months 3 months
ended ended ended ended
30 June 30 June 30 June 30 June
2017 2016 2017 2016
GBP GBP GBP GBP
(Restated) (Restated)
----------------------------- ---------- ------------ ---------- ------------
Loss from operations
per reportable segment (900,101) (304,728) (518,100) (164,950)
- Change in fair
value of contingent
consideration 153,095 (148,706) 120,885 (109,008)
- Charge for share
options granted (78,810) (18,184) (28,424) (9,092)
- Impairment of available
for sale asset - - - -
- Finance income 7,448 2,964 6,825 909
- Finance costs (116,944) (110,409) (58,758) (55,204)
Loss for the period
from continuing operations (955,312) (579,063) (477,572) (337,345)
=============================== ========== ============ ========== ============
5. Change in Fair Value of Contingent Consideration
Contingent Consideration payable to the former owners of Teck
Cominco Brasil S.A.
Contingent consideration payable to the former owners of Teck
Cominco Brasil S.A. has a carrying value of GBP141,325 at 30 June
2017 (30 June 2016 (Restated: GBP176,453).
The fair value of the contingent consideration arrangement with
the former owners of Teck Cominco Brasil S.A. was estimated at the
acquisition date according to the probability and timing of when
future taxable profits will arise against which the tax losses may
be utilised in accordance with the terms of the acquisition
agreement.
As explained in note 21 of the 2016 Annual Report the estimate
of fair value was restated as at 31 December 2015 and all periods
up to 31 December 2016. The critical assumptions underlying the
fair value estimate are set out in note 4.3. Estimates were also
based on the current rates of tax on profits in Brazil of 34% and a
discount factor of 7.0% was applied to the future dates at which
the tax losses will be utilised and consideration paid.
As at 30 June 2017, there was a finance expense of GBP5,050 (30
June 2016 Restated: GBP6,408) recognised in finance costs within
the Condensed Statement of Comprehensive Income in respect of this
contingent consideration arrangement, as the discount applied to
the contingent consideration at the date of acquisition was
unwound.
The cash flow model used to estimate the contingent
consideration was adjusted, to take into account changed
assumptions in the timing of cash flows as derived from the
Pre-Feasibility Study as published by the Group in October 2016.
The key assumptions underlying the cash flow model derived from the
Pre-Feasibility Study as published by the Group in October 2016 are
unchanged as at 30 June 2017. The change in the fair value of
contingent consideration payable to the former owners of Teck
Cominco Brasil S.A. generated a charge to profit or loss of
GBP21,239 for the six months ended 30 June 2017 (30 June 2016
Restated: GBP36,623 charge) due to changes in the functional
currency in which the liability is payable.
Contingent Consideration payable to Xstrata Brasil Mineração
Ltda.
The contingent consideration payable to Xstrata Brasil Mineração
Ltda has a carrying value of GBP3,246,242 at 30 June 2017 (30 June
2016: GBP3,244,253). It comprises two elements: US$1,000,000 due
after the date of issuance of a joint feasibility study for the
combined Enlarged Project areas and to be satisfied by shares or
cash, together with US$5,000,000 consideration in cash as at the
date of first commercial production from any of the resource areas
within the Enlarged Project area. The key assumptions underlying
the treatment of the contingent consideration the US$5,000,000 are
as per those applied to the contingent consideration payable to the
former owners of Teck Cominco Brasil S.A.
As at 30 June 2017, there was a finance expense of GBP112,464
(2016: GBP104,001) recognised in finance costs within the Statement
of Comprehensive Income in respect of this contingent consideration
arrangement, as the discount applied to the contingent
consideration at the date of acquisition was unwound.
The change in the fair value of contingent consideration payable
to Xstrata Brasil Mineração Ltda generated a credit to profit or
loss of GBP174,259 for the six months ended 30 June 2017 (30 June
2016: GBP112,083) due to changes in the functional currency in
which the liability is payable.
6. Intangible assets
Intangible assets comprise exploration and evaluation costs and
goodwill. Exploration and evaluation costs comprise internally
generated and acquired assets.
Group Exploration
and
Goodwill Exploration evaluation Total
licences costs
GBP GBP GBP GBP
------------------------- --------- ------------ ------------ ------------
Cost
At 1 January 2017 280,060 5,645,185 26,092,551 32,017,796
Additions - - 2,716,012 2,716,012
Exchange rate movements (19,144) (316,663) (1,880,078) (2,215,879)
Net book amount at
30 June 2017 260,916 5,328,522 26,928,495 32,517,928
========================= ========= ============ ============ ============
7. Share Capital and Share Premium
Issued and fully Ordinary Share
paid Number shares premium Total
of shares GBP GBP GBP
------------------ -------------- ----------- ----------- -----------
At 1 January
2017 1,171,934,300 11,719,343 35,767,344 47,486,687
At 30 June 2017 1,171,934,300 11,719,343 35,767,344 47,486,687
------------------ -------------- ----------- ----------- -----------
8. Dividends
No dividend has been declared or paid by the Company during the
six months ended 30 June 2017 (2016: nil).
9. Earnings per share
The calculation of the basic loss per share of 0.08 pence for
the 6 months ended 30 June 2017 (30 June 2016 loss per share: 0.086
pence) is based on the loss attributable to the equity holders of
the Company of GBP (935,312) for the six month period ended 30 June
2017 (30 June 2016: GBP(579,063)) divided by the weighted average
number of shares in issue during the period of 1,171,934,300
(weighted average number of shares for the 6 months ended 30 June
2016: 671,047,312).
The calculation of the basic loss per share of 0.041 pence for
the 3 months ended 30 June 2017 (30 June 2016 loss per share: 0.036
pence) is based on the loss attributable to the equity holders of
the Company of GBP (477,572) for the three month period ended 30
June 2017 (3 months ended 30 June 2016: GBP 337,345) divided by the
weighted average number of shares in issue during the period of
1,171,934,300 (weighted average number of shares for the 3 months
ended 30 June 2016: 671,204,378).
The basic and diluted loss per share is the same, as the effect
of the exercise of share options would be to decrease the loss per
share.
Details of share options that could potentially dilute earnings
per share in future periods are disclosed in the notes to the
Group's Annual Report and Financial Statements for the year ended
31 December 2016 and in note 10 below.
10. Issue of Share Options
On 31 March 2017, the Company awarded 41,000,000 share options
to Directors and senior management. All of the share options have
an exercise price of 3.20 pence. One third of the options are
exercisable from 30 September 2017, one third from 31 March 2018
and one third from 30 September 2018.
No share options were issued in the first 6 months of 2016.
11. Ultimate controlling party
The Directors believe there to be no ultimate controlling
party.
12. Related party transactions
The nature of related party transactions of the Group has not
changed from those described in the Group's Annual Report and
Financial Statements for the year ended 31 December 2016.
13. Events after the reporting period
There are no events which have occurred after the reporting
period which would be material to the financial statements.
Approval of interim financial statements
These Condensed Consolidated Interim Financial Statements were
approved by the Board of Directors on 10 August 2017.
* * ENDS * *
For further information visit www.horizonteminerals.com or
contact:
Jeremy Martin Horizonte Minerals Tel: +44 (0)
plc 20 7763 7157
David Hall Horizonte Minerals Tel: +44 (0)
plc 20 7763 7157
Emily Morris finnCap Ltd (Corporate Tel: +44 (0)
Christopher Broking) 20 7220 0500
Raggett finnCap Ltd (Corporate Tel: +44 (0)
James Thompson Finance) 20 7220 0500
finnCap Ltd (Corporate Tel: +44 (0)
Finance) 20 7220 0500
Damon Heath Shard Capital (Joint Tel: +44 (0)
Broker) 20 7186 9952
Erik Woolgar Shard Capital (Joint Tel: +44 (0)
Broker) 20 7186 9952
Lottie Brocklehurst St Brides Partners Tel: +44 (0)
Megan Dennison Ltd (PR) 20 7236 1177
St Brides Partners Tel: +44 (0)
Ltd (PR) 20 7236 1177
About Horizonte Minerals:
Horizonte Minerals plc is an AIM and TSX-listed nickel
development company focused in Brazil, which wholly owns the
advanced Araguaia nickel laterite project located to the south of
the Carajas mineral district of northern Brazil. The Company is
developing Araguaia as the next major nickel mine in Brazil, with
targeted production by 2019.
The Project has good infrastructure in place including rail,
road, water and power.
Horizonte has a strong shareholder structure including Teck
Resources Limited 17.9%, Lombard Odier Asset Management (Europe)
Limited 14.11%, Richard Griffiths 14.5%, JP Morgan 8.4%, Hargreave
Hale 6.4% and Glencore 6.4%.
CAUTIONARY STATEMENT REGARDING FORWARD LOOKING INFORMATION
Except for statements of historical fact relating to the
Company, certain information contained in this press release
constitutes "forward-looking information" under Canadian securities
legislation. Forward-looking information includes, but is not
limited to, statements with respect to the potential of the
Company's current or future property mineral projects; the success
of exploration and mining activities; cost and timing of future
exploration, production and development; the estimation of mineral
resources and reserves and the ability of the Company to achieve
its goals in respect of growing its mineral resources; and the
realization of mineral resource and reserve estimates. Generally,
forward-looking information can be identified by the use of
forward-looking terminology such as "plans", "expects" or "does not
expect", "is expected", "budget", "scheduled", "estimates",
"forecasts", "intends", "anticipates" or "does not anticipate", or
"believes", or variations of such words and phrases or statements
that certain actions, events or results "may", "could", "would",
"might" or "will be taken", "occur" or "be achieved".
Forward-looking information is based on the reasonable assumptions,
estimates, analysis and opinions of management made in light of its
experience and its perception of trends, current conditions and
expected developments, as well as other factors that management
believes to be relevant and reasonable in the circumstances at the
date that such statements are made, and are inherently subject to
known and unknown risks, uncertainties and other factors that may
cause the actual results, level of activity, performance or
achievements of the Company to be materially different from those
expressed or implied by such forward-looking information, including
but not limited to risks related to: exploration and mining risks,
competition from competitors with greater capital; the Company's
lack of experience with respect to development-stage mining
operations; fluctuations in metal prices; uninsured risks;
environmental and other regulatory requirements; exploration,
mining and other licences; the Company's future payment
obligations; potential disputes with respect to the Company's title
to, and the area of, its mining concessions; the Company's
dependence on its ability to obtain sufficient financing in the
future; the Company's dependence on its relationships with third
parties; the Company's joint ventures; the potential of currency
fluctuations and political or economic instability in countries in
which the Company operates; currency exchange fluctuations; the
Company's ability to manage its growth effectively; the trading
market for the ordinary shares of the Company; uncertainty with
respect to the Company's plans to continue to develop its
operations and new projects; the Company's dependence on key
personnel; possible conflicts of interest of directors and officers
of the Company, and various risks associated with the legal and
regulatory framework within which the Company operates.
Although management of the Company has attempted to identify
important factors that could cause actual results to differ
materially from those contained in forward-looking information,
there may be other factors that cause results not to be as
anticipated, estimated or intended. There can be no assurance that
such statements will prove to be accurate, as actual results and
future events could differ materially from those anticipated in
such statements.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR SFEFMSFWSEIA
(END) Dow Jones Newswires
August 11, 2017 02:00 ET (06:00 GMT)
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