TIDMORR
RNS Number : 2910H
Oriole Resources PLC
24 March 2020
Oriole Resources plc / Index: AIM / Epic: ORR / Sector:
Mining
Oriole Resources PLC
('Oriole' or 'the Company' or 'the Group')
Final Results and Notice of AGM
Oriole Resources, the AIM-quoted exploration company focused on
West Africa, announces its final results for the year ended 31
December 2019.
Copies of the Company's Annual Report will be posted to
shareholders on or before 9 April 2020. The Company's Annual
General Meeting will be held at 1.00pm on 26 May 2020 at its
offices located at Wessex House, Upper Market Street, Eastleigh,
Hampshire, SO50 9FD.
Operational Highlights:
-- Successfully re-applied for the 472.5 square kilometer
('km(2) ') Dalafin land package, under a new licence named Senala,
securing up to another 10 years tenure in this highly prospective
south-eastern corner of Senegal;
-- Continued exploration success by IAMGOLD Corporation
('IAMGOLD') through an extensive drill programme, which has seen it
continue to earn-in to the Senala licence. Recent confirmation of
the year three programme will see an anticipated 10,000 metres
('m') aircore ('AC') drilled at the Faré target in the north of the
licence;
-- Extensive exploration work at the Bibemi and Wapouzé licences
in Cameroon undertaken, including 12,500m of trenching at Bibemi,
delivering best results of up to 9.00m at 3.14 grammes per tonne
('g/t') gold ('Au');
-- Application for an extensive 3,500 km(2) licence package in central Cameroon.
Financial Overview:
-- Operating loss of GBP1.41 million reported for the year to 31
December 2019; a significant reduction compared to a loss of
GBP2.55 million in the prior year. This was driven by increased
cost discipline, including a 14% reduction in administration
costs;
-- Loss for the year reduced to GBP1.66 million, a reduction of
64% when compared to the prior year;
-- Investment of GBP0.71 million into Oriole's exploration
projects in Cameroon, as the Group seeks to maximise cash available
for exploration purposes;
-- UK Administration expenses reduced by 22% to GBP1.03 million.
Post Year End:
-- Post year end the Company made the first successful step in
its asset realisation programme with the sale of its holding in
Tembo Gold Corp ('Tembo') for GBP0.17 million;
-- Closed a placing of equity to raise GBP0.24 million;
-- In response to the current global situation relating to
COVID-19, and with Cameroon's borders closed, limited exploration
work is expected in the next three months. Consequently, the
Directors and senior management have taken reduced salaries for
this period, in order to preserve the Company's cash reserves in
anticipation of the proposed drilling campaign later in the
year.
Tim Livesey, CEO of Oriole, commented:
"It has been a successful year for Oriole, that has continued
through to 2020. We have focused on advancing our early-stage
exploration projects in Cameroon and the continuation of IAMGOLD's
earn-in at Senala, in Senegal, as well as progress on our asset
realisation plans.
"We released results from trenching at Bibemi during 2019 that
confirmed two adjacent gold mineralised corridors. The information
obtained has been used to plan follow-up exploration work and has
enabled drill target definition ahead of our drill campaign,
expected to commence later this year. During the period, the
Cameroonian government released results from the first phase of its
PRECASEM programme, funded by the World Bank, which included
regional-scale geochemistry. We recognise the exploration potential
for precious metals in Cameroon and, based on our confidence from
the early successes at Bibemi and Wapouzé , we submitted
applications for an additional eight licences, consolidating our
land holding in the country.
"In Senegal, our earn-in partner, IAMGOLD, has to date allocated
US$1.50 million of exploration funding at Senala, targeting the
Madina Baf é and Saroudia prospects and has recently announced its
Year 3 programme which will focus on the Faré prospect. At the
start of this year we received the renewal of our licence at Senala
(previously Dalafin) which has secured tenure for up to a further
10 years. Additionally, IAMGOLD's Boto gold project received its
mine permit. Boto is located only 10km from the Madina Bafé
prospect, and the prospects at Senala have the potential to
identify additional mine feed for the project.
"Over the year we have been working on delivering our strategy
to execute asset realisation and we were pleased to report the sale
of the Company's shares in Tembo. As a Board, and company, we
strive to bring value to shareholders, focusing on advancing our
projects and, where possible, minimising dilution. We reduced
administration costs by 14% compared to 2018 and late last year the
Board further aligned itself with shareholders by taking options in
lieu of salaries. This has also allowed the Company to continue to
prioritise and advance its exploration efforts.
"Finally, I would like to thank our employees for their hard
work over the year and their continued support and commitment
during the current difficult global health and financial
crisis."
Chairman's Statement
During 2019, the Company has worked hard to develop its West
Africa portfolio, with significant investment made into the Group's
exploration programmes and partnerships. Substantial progress has
also been made on our investment and royalty portfolio, with
management actively moving to monetise non-core assets in order to
fund ongoing exploration activities in Cameroon and thus minimise
the Company's requirement for dilutionary equity funds.
The Company's strategy is to develop a portfolio of exploration
projects for gold and base metals, and identify potential partners
to take them into the advanced exploration and mine development
stages. To this end, we regularly review potential new projects and
maintain an active dialogue with potential investment and
joint-venture partners.
Operations
Senala, Senegal
In south-eastern Senegal, our 472.5km(2) Dalafin licence reached
its maximum term during the period. However, as a result of the
recent progress at the project and our partnerships with IAMGOLD
and Energy & Mining Corporation S.A. (' EMC'), we were able to
reapply for a new licence, covering the same coordinates but now
renamed Senala. This has provided security of tenure for up to a
further 10 years and IAMGOLD continues to invest in the exploration
work, under the terms of the earn-in agreement we signed in March
2018. To date IAMGOLD has spent approximately US$1.5 million and
earlier this month it confirmed that it will shortly commence Year
3 of the earn-in. As per the terms of the option agreement, IAMGOLD
must spend a further US$1 million during Year 3 (to end February
2021) to keep the option in good standing.
To date IAMGOLD has focused on the Madina Baf é prospect, which
lies within 10km of its 2.5 million-ounce Boto project. Boto
received mine permitting in January 2020, positioning it for a
development decision and eventual production. As per its fourth
quarter 2019 results, it has already announced US$30 million of
infrastructure investment. Best results at Madina Bafé to date
include 9.60m grading 16.08 g/t Au from 15.10m, 15.00m grading 6.10
g/t Au from 14.00m and 8.00m grading 2.56 g/t Au from 76.00m
(Announcements dated 16 July 2014 and 6 February 2018).
The Year 3 programme will see exploration move to the more
advanced Faré prospect in the north, which showed significant
potential during the Group's own exploration programmes with best
results to date of 96.00m grading 1.51 g/t Au and 7.00m grading
86.39 g/t Au (Announcements dated 18 December 2013 and 19 February
2014). An initial programme involving approximately 10,000m of AC
drilling is planned to further define and confirm areas of
anomalism. A follow up reverse circulation ('RC') drilling
programme will be designed contingent on results from the AC
drilling. As a result of the new licence, new permit
(environmental, water and forestry) applications are underway to
enable commencement of the programme and we look forward to
reporting on the results as they become available.
The proximity of Senala to Boto, and its prime location within
the highly gold-endowed Kédougou-Kéniéba inlier, represents a
significant driver of value for the Group, and securing tenure for
up to another 10 years has been an exceptional result.
Bibemi, Wapouzé and new licences, Cameroon
In 2018 we were delighted to announce the completion of an
earn-in agreement with Bureau d'Etudes et d'Investigations
Géologico-minières, Géotechniques et Géophysiques SARL ('BEIG3'), a
well-established Cameroonian company with strong in-country
technical and logistic support, for its two early-stage gold
exploration projects, Bibemi and Wapouzé, in northern Cameroon.
Through 2019 we have advanced the Bibemi project significantly,
having completed 12,500m of trenching that has confirmed two
adjacent gold-mineralised corridors, the most robust of which
extends over 5.3km and includes best intersections of up to 9.00m
at 3.14 g/t Au (Announcement dated 21 May 2019). During the period
we have developed a strong geological model at the Bakassi Zone and
are planning a drill campaign in 2020 to test the system at depth.
To date, drill targets for an initial 1,500m of drilling (over 14
holes) have been pegged.
Work at Wapouzé is less advanced, but the two phases of soil
sampling identified c.13km strike length of gold anomalism within
the eastern Bataol Zone. A targeted trenching programme is planned
for 2020 to follow-up on the most significant anomalies.
We continue to see great potential in Cameroon becoming the next
frontier for gold exploration. The countrywide-survey funded by the
World Bank has delivered regional scale geological information, and
identified a number of areas of interest which correlated to the
views of our own technical team. In addition to our existing Bibemi
and Wapouzé licences, we have applied for eight contiguous licences
covering 3,500 km (2) in central Cameroon. We are discussing
funding options with a number of potential partners, with the
intention of commencing exploration work as soon as possible once
the licences are formally granted.
Investments and Royalty positions
The Group has a range of investment and potential royalty
positions arising from exploration activities in prior years. We
take an active interest in managing these positions, with the
ultimate goal of maximising shareholder value. These positions
provide a potential source of funding for the Group and are subject
to an active and ongoing asset realisation programme. Although the
timing and quantum of proceeds from that plan are not easily
predictable, the recent disposal of the Company's 12.27% holding in
Tembo for net proceeds of GBP172k (Announcement dated 25 February
2020) represents the first significant success in that programme.
The Company anticipates making a number of further announcements
around non-core asset disposals in the coming months. The most
significant remaining positions within the Group are set out
below.
Thani Stratex Resources ('TSR')
TSR has undergone a significant restructuring that has resulted
in the spin-out of its 50%-owned joint venture, Thani Stratex
Djibouti. As such, TSR is now exclusively focused on its 100%-owned
Hodine licence in Egypt that hosts the Anbat and Hutite projects.
At Hutite, former operator Thani Ashanti drilled over 30,000m of RC
and diamond drilling between December 2010 and March 2013. On the
basis of this work, South Africa-based Quantitative Group estimated
an Inferred Resource (non-JORC) of 11,410,000 tonnes grading 1.41
g/t Au for 520,000 in-situ ounces using 0.4 g/t Au cut-off . At
Anbat, TSR has previously announced a maiden JORC 2012-compliant
Mineral Resource Estimate of 209,000 oz at 1.11 g/t Au within
porphyry sills (Announcements dated 6 and 13 December 2017).
Limited work has been performed at either project since 2017, and
we continue to look for opportunities to maximise value from our
26.1% holding in TSR.
Thani Stratex Djibouti ('TSD')
The above restructuring of TSR, has resulted in TSD becoming a
standalone vehicle that is now funded and managed independently.
The company is focused on the exploration of epithermal gold
projects in Djibouti, namely Pandora, Assaleyta and Hesdaba.
Results from previous drill campaigns at Pandora in particular have
demonstrated broad zones of multi-gramme gold mineralisation, with
narrower zones of higher-grade mineralisation. Best drilling
results to date at Pandora include 35.07m at 1.28 g/t Au and 8.30m
at 7.21 g/t Au (Announcement dated 19 April 2018).
In the fourth quarter of 2019, African Minerals Exploration
& Development Fund III ('AMED') committed to funding an
exploration programme in Djibouti (Announcement dated 19 November
2019). Exploration is currently underway at the Pandora and Hesdaba
projects, with further funding to be released in tranches that are
subject to performance milestones. Oriole currently has an 11.80%
interest in TSD and maintains a monitoring role in its management,
with Tim Livesey to shortly be appointed to the board (Announcement
dated 9 March 2020). We look forward to reporting results of the
ongoing drilling campaign as they become available.
Karaa aç
At the Company's former Karaa aç gold project in Turkey, the
current owner, Anadolu Export Maden Sanayi ve Ticaret Limited
irketi ('Anadolu'), has confirmed an Indicated Resource
significantly in excess of the 50,000 ounces of gold necessary to
trigger the success-based payment due to Oriole upon meeting that
milestone. Currently only US$75k has been received, with US$425k
outstanding. We continue to push for full recovery of this
debt.
Muratdere
Our interest in the Muratdere gold project in Turkey converted
to a 1.2% net smelter return royalty during the year (Announcement
dated 21 November 2019). Our joint-venture partner, Lodos Maden
Yatırım Sanayii ve Ticaret A. . ('Lodos'), is continuing to develop
the Environmental Impact Assessment ('EIA') programme, and we are
awaiting the successful conclusion of this key phase.
Hasançelebi and Do ala
At two of the Company's gold projects in Turkey, Hasançelebi and
Do ala, the Company has signed an exploration agreement with
Turkish private company Bati Toroslar Sti ('Toroslar'), to replace
a similar agreement signed the previous year. Due to the need to
change partners, progress has been slow, but we anticipate a more
active exploration programme during 2020. Oriole will be involved
in the exploration programme and so its operational overheads in
Turkey will be further reduced as costs will be recharged to
Toroslar.
Financial Review
We are pleased to be reporting a considerably reduced loss for
the year, of GBP1.66 million (2018: GBP4.66 million), with
significant cost reductions targeted and achieved, despite an
increase in exploration activity. The Group reported reduced
administrative costs of GBP1.56 million, 14% down on the prior
year. With a significant reduction reported last year, the Group
has now achieved a 36% reduction in administrative expenses since
2018 when the new Board was appointed.
In addition, Research and Development credits of GBP142k were
received as cash in 2019, relating to claims from 2016 to 2018. We
anticipate a similar success when we submit our claim for 2019, a
year where research and development-related costs were
significantly higher as our exploration activities in Cameroon
increased.
The Board's commitment to maximising the cash available for
exploration work was demonstrated by the agreement to move to an
equity-only remuneration plan in November 2019, and into early
2020.The issue of the options that underpin the plan will be
delayed pending the Company coming out of a close period, and the
necessary shareholder authorities. Salary costs have been accrued
until such time as the options are issued.
The successful realisation of our 12.27% stake in Tembo and the
GBP245k equity raise early in 2020 will provide funding for
continued work on our Cameroonian licences.
Covid-19
The Board is monitoring the global health crisis and considering
its impact on the position of the Company from an operational and
financial perspective, including the measures required to protect
our staff. With extreme international travel restrictions in force,
and the effects of Covid-19 impacting the Company's operational
areas of Cameroon and Senegal, it is clear that limited exploration
work will be possible, at least in Cameroon, until later in the
year. Unless advised otherwise, we anticipate that the
IAMGOLD-drilling campaign in Senegal will continue as planned and
we will continue to drive our asset realisation programme, albeit
in difficult markets. In the UK and Turkey, the Company has systems
in place for all staff to be able to work remotely for home.
With limited exploration work expected over the next three to
six months, the Directors and senior management team have decided
to go onto reduced salaries from April for three months, in order
to conserve cash for the planned drilling campaign later this
year.
Annual General Meeting ("AGM") Update
The Company's AGM is scheduled for 26 May 2020 at Wessex House,
Upper Market Street, Eastleigh, Hampshire, SO50 9FD. The Company
encourages all shareholders to vote via proxy form in advance of
the meeting date and not to attend the meeting in person to
minimise the number of individuals present in response to the
COVID-19 situation. Guests will not be permitted to attend the
meeting. The legal requirements of the AGM will be completed, with
no social reception or investor presentation. The Company will
adhere to all restrictions and recommendations regarding public
meetings, and social distancing measures will be in place.
Outlook
In 2020, we look to continue the progress we have made, and to
drive shareholder value through the targeted exploration and
development of our position in Cameroon. Funding remains difficult
for exploration companies in general but with a well-advanced
programme of asset realisation and a strong gold price, we believe
we can procure the funds we need whilst minimising shareholder
dilution and ultimately driving shareholder value.
IAMGOLD's continued investment at Senala, and its progression
towards mine development at Boto, should provide an excellent value
creation dynamic throughout 2020, whilst we further develop our
earlier-stage projects in Cameroon. Cameroon is largely unexplored
from a gold and other metals perspective, and we believe that our
operational presence over what has been almost two years, gives us
first mover advantage for acquiring further prospective ground. The
identification of a 3,500 km (2) district with proven gold
prospectivity has garnered significant interest among the
exploration departments of a number of mid-tier mining companies
and we look forward to commencing exploration on these licences as
soon as possible.
On behalf of Oriole's Board of Directors, I would like to
express our appreciation and thanks to all of our employees for
their efforts and hard work during the past year.
John McGloin
Non-Executive Chairman
23 March 2020
Extracts from the Strategic Report
Principal Activities
The principal activity of the Group is the exploration and
development of gold and other high-value base metals projects.
Strategic approach
The Board's strategy is to establish the Company as a leading
value-adding project-generator in our chosen mineral
specialisations and in our geographic areas of operation. We seek
to acquire exposure to highly prospective districts, primarily in
West Africa, and have developed a first-mover position in Cameroon,
an exciting new frontier for gold-exploration. The Board aims to
develop a portfolio of projects that cover a range of mineral
deposits across multiple jurisdictions, thus mitigating sovereign,
technical and operational risks.
The Group finances its activities through the monetisation of
more advanced projects and through periodic capital raisings.
Organisation overview
The Board of Directors, appointed in 2018, provide extensive
experience in the exploration of mineral projects and the operation
of public companies. The Board is ably supported by a management
team who, for many years, have delivered successful exploration
projects across Turkey and Africa.
Business environment
The price of gold increased by 19% during the year, from an
opening position of US$1,281 per ounce, to US$1,523 per ounce at 31
December 2019. With continued economic uncertainty, we believe
gold's reputation as a safe haven will continue to give upward
pressure on its price.
In addition, since 2012, exploration budgets and teams have been
cut in the major gold producers, and resource pipelines have not
been replenished. The need to replenish resources is driving
renewed interest in early-stage exploration. The junior exploration
sector will benefit from this and we expect to see increased
appetite for investment into our sector, once financial markets
start to recover from the current Covid-19 related downturn.
Business performance
2019 Operations
The Group's main operations are split between active exploration
projects and the management of our investment and royalty
positions.
Active Exploration projects:
The primary focus for the Group's own exploration activities is
our position in Cameroon. In 2018 the Group signed an earn in
agreement with BEIG3 to gain an interest in the Bibemi and Wapouzé
licences in northern Cameroon. Work on the licences has progressed
throughout 2019, with 12,500m of trenching at Bibemi, and two
phases of soil sampling at Wapouzé. Encouraging results have been
observed at both licences and further exploration programmes have
been planned for 2020. We are currrently awaiting confirmation of
licence renewal for both Bibemi and Wapouzé. Both applications are
moving through the renewal process, with our rights secured by
deemed tenure rules.
In addition, the Group has applied for a district scale package
of licences in central-Cameroon, covering 3,500 km (2) of highly
prospective ground that has yielded anamolous gold samples during a
World Bank-funded, regional-scale stream sediment sampling
programme. Exploration activities are being planned, with the
licence application process expected to be completed shortly.
In 2018, the Group entered an agreement with Canadian-listed
gold miner IAMGOLD, for it to earn-in to the exploration licence at
Dalafin in Senegal. This 472 km(2) of highly prospective ground, in
the middle of the Kédougou-Kéniéba inlier, is surrounded by
historic and contempary gold discoveries. As a result of the US$8
million earn-in programme, around US$1.5 million of exploration
expenditure has been incurred by IAMGOLD, and further substantial
drilling is planned for 2020, subject to possible operational
restrictions as a result of Covid-19.
Importantly, the Group managed to re-licence the Dalafin land
package which, under its new name Senala, now has security of
tenure for up to a further 10 years. The earn-in is progressing as
scheduled and exploration is now planned to move to the stand-alone
Faré target in the north of the licence. We look forward to
reporting on these drill results as they become available, which
will add to the already extensive results from previous work by the
Group that delivered best results of 96.00m grading 1.51 g/t Au and
7.00m grading 86.39 g/t Au (Announcements dated 18 December 2013
and 19 February 2014).
Investment and royalty positions:
TSR has recently completed a re-organisation, with its TSD
subsidiary hived out to become a standalone company. TSD, which
operates the Pandora, Assaleyta and Hesdaba licences in Djibouti,
is currently undergoing an active drilling campaign, managed and
funded by AMED Funds, the 50% main shareholder, and we look forward
to receiving preliminary results shortly. Oriole currently has an
11.80% interest in TSD and continues to have a 26.10% interest in
TSR and its Egyptian assets.
At the Company's former Karaa aç gold project in Turkey, Anadolu
has confirmed a JORC 2012-compliant Indicated Resource of
156,798oz, which has triggered a success based payment of US$500k
to Oriole. We are disappointed to report the continued failure by
Anadolu to meet an agreed repayment schedule for this debt but we
are continuing to pursue its repayment. Oriole also retains a 1.5%
net smelter return royalty on any future mineral production.
At the Muratdere Madencilik copper-gold project in northern
Turkey, our joint-venture partner, Lodos, exercised its option to
convert our sub-10% interest into a 1.2% post-Turkish tax royalty
position.
The other investment assets held by the Group during 2019 were
holdings in Tembo and Aforo. Tembo was held to the year end but
disposed of in early 2020, for net proceeds of GBP172k, as part of
the Company's asset realisation strategy. Aforo unfortunately found
funding hard to come by and the business closed in 2019, leading to
a write off of GBP227k in these financial statements.
Financial Review:
The Group's loss after tax for the year was GBP1,660k (2018:
loss of GBP4,661k).
Administration expenses of GBP1,556k (2018: GBP1,806k) were 14%
lower than the previous year, building on that years' 26% reduction
from 2017. Work to reduce the cost base is continuing. In addition
to the savings, an accrual of GBP69k for salaries will be released
as soon as the Directors Share Option Remuneration plan can be
fulfilled by the issue of options.
The Group loss after tax was inflated due to an exchange loss of
GBP325k on the translation of the Dalafin (now Senala) asset, which
is denominated in Euro's.
The Group ended the year with a cash balance of GBP163k, a
decrease in the year of GBP1,124k following GBP711k investment into
the Group's exploration work in Cameroon. Incoming funds included
GBP522k from successful conculsion of the long-running VAT dispute
(Announcement dated 29 April 2019) and GBP142k from the
reclaimation of Research and Development tax credits from HMRC.
During 2019, the Group commenced an asset realisation programme
with the intention of raising incoming cash to fund forthcoming
exploration activities whilst minimising share holder dilution.
Significant progress has been made, including the disposal of the
Tembo holding (Announcment dated 25 February 2020).
Tim Livesey
Chief Executive Officer
23 March 2020
Financial Statements
Statement of consolidated comprehensive income
Year ended 31 Year ended 31
December 2019 December 2018
GBP'000 GBP'000
Continuing operations
=============================================== =============== ===============
Administration expenses (1,556) (1,806)
=============================================== =============== ===============
Other income/(losses) 150 (741)
----------------------------------------------- --------------- ---------------
Operating loss (1,406) (2,547)
=============================================== =============== ===============
Finance income 5 67
=============================================== =============== ===============
Share of losses in equity-accounted
investments (126) (2,042)
=============================================== =============== ===============
Loss on change of ownership interest (212) (98)
=============================================== =============== ===============
Loss before income tax (1,739) (4,620)
=============================================== =============== ===============
Income tax credit/(charge) 79 (41)
----------------------------------------------- --------------- ---------------
Loss for the year (1,660) (4,661)
----------------------------------------------- --------------- ---------------
Other comprehensive income for the
year
=============================================== =============== ===============
Items that may be subsequently reclassified to profit
or loss
================================================================ ===============
Exchange differences on translating
foreign operations 102 134
Items that may not be subsequently
reclassified to profit or loss
Change in fair values of other financial
assets (240) (167)
--------------- ---------------
Other comprehensive income for the
year, net of tax (138) (33)
----------------------------------------------- --------------- ---------------
Total comprehensive loss for the
year (1,798) (4,694)
----------------------------------------------- --------------- ---------------
Loss for the year attributable to:
----------------------------------------------- --------------- ---------------
Owners of the Parent Company (1,554) (4,574)
----------------------------------------------- --------------- ---------------
Non-controlling interests (106) (87)
--------------- ---------------
Loss for the year (1,660) (4,661)
--------------- ---------------
Total comprehensive loss for the year attributable to:
Owners of the Parent Company (1,692) (4,607)
Non-controlling interests (106) (87)
Total comprehensive loss for the
year (1,798) (4,694)
----------------------------------------------- --------------- ---------------
Earnings per share from losses attributable
to the equity holders of the Company
(expressed in pence per share).
===============================================
- basic and diluted, continuing
operations (0.22) (0.77)
=============================================== =============== ===============
Statement of consolidated financial position
As at 31
December As at 31 December
2019 2018
GBP'000 GBP'000
ASSETS
========== ==================
Non-Current Assets
===================================== ========== ==================
Property, plant and equipment 21 27
====================================== ========== ==================
Intangible assets (note 5) 7,244 6,780
====================================== ========== ==================
Investments in equity-accounted
associates (note 3) 2,250 2,250
====================================== ========== ==================
Financial assets held at fair
value through other comprehensive
income (note 4) 165 414
====================================== ========== ==================
Deferred tax asset 38 111
---------- ------------------
9,718 9,582
------------------------------------- ---------- ------------------
Current Assets
===================================== ========== ==================
Trade and other receivables 121 783
====================================== ========== ==================
Cash and cash equivalents 163 1,287
-------------------------------------- ---------- ------------------
284 2,070
------------------------------------- ---------- ------------------
Total Assets 10,002 11,652
-------------------------------------- ---------- ------------------
EQUITY
===================================== ========== ==================
Equity attributable to owners
of the Company
===================================== ========== ==================
Share capital 4,908 4,908
====================================== ========== ==================
Share premium 21,253 21,253
====================================== ========== ==================
Other reserves 1,185 1,701
====================================== ========== ==================
Retained earnings (17,578) (16,427)
-------------------------------------- ---------- ------------------
Total equity attributable to owners
of the Company 9,768 11,435
====================================== ========== ==================
Non-controlling interest (209) (103)
-------------------------------------- ---------- ------------------
Total Equity 9,559 11,332
-------------------------------------- ---------- ------------------
LIABILITIES
===================================== ========== ==================
Non-Current Liabilities
Employee termination benefits 30 30
Current Liabilities
Trade and other payables 413 290
====================================== ---------- ------------------
Total Liabilities 443 320
---------- ------------------
Total Equity and Liabilities 10,002 11,652
-------------------------------------- ---------- ------------------
Statement of consolidated changes in equity
Attributable to owners of the Company
---------------------------------------------------------
Share Share Other Retained Total Non-Controlling Total
Capital Premium Reserves earnings Interest Equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
----------------- --------- --------- --------- --------- ------------- ---------------- ---------
Balance at 1
January 2018 4,673 20,427 1,683 (11,853) 14,930 (16) 14,914
Comprehensive
income
for the year:
================ ========= ========= ========= ========= ============= ================ ---------
- loss for the
year - - - (4,574) (4,574) (87) (4,661)
================= ========= ========= ========= ========= ============= ================ =========
- other
comprehensive
income - - (33) - (33) (33)
-----------------
Total
comprehensive
income
for the year - - (33) (4,574) (4,607) (87) (4,694)
----------------- --------- --------- --------- --------- ------------- ---------------- -----------
Issue of share
capital net of
expenses 235 826 - - 1,061 - 1,061
----------------- --------- --------- --------- --------- ------------- ---------------- ---------
Share-based
payments - - 51 - 51 - 51
----------------- --------- --------- --------- --------- ------------- ---------------- ---------
Total
contributions
by
and
distributions
to owners
of the Company 235 826 51 - 1,112 - 1,112
----------------- --------- --------- --------- --------- ------------- ---------------- ---------
Balance at 31
December
2018 4,908 21,253 1,701 (16,427) 11,435 (103) 11,332
Comprehensive
income for
the year
================= ========= ========= ========= ========= ============= ================ =========
- loss for the
year - - - (1,554) (1,554) (106) (1,660)
================= ========= ========= ========= ========= ============= ================ =========
- other
comprehensive
income - - (138) - (138) - (138)
=========
Total
comprehensive
income
for the year - - (138) (1,554) (1,692) (106) (1,798)
----------------- --------- --------- --------- --------- ------------- ---------------- ---------
Share-based
payments - - 25 - 25 - 25
----------------- --------- --------- --------- --------- ------------- ---------------- ---------
Share options
expired - - (403) 403 - - -
----------------- --------- --------- --------- --------- ------------- ---------------- ---------
Total
contributions
by
and
distributions
to owners
of the Company - - (378) 403 25 - 25
----------------- --------- --------- --------- --------- ------------- ---------------- ---------
Balance at 31
December
2019 4,908 21,253 1,185 (17,578) 9,768 (209) 9,559
----------------- --------- --------- --------- --------- ------------- ---------------- ---------
Statement of consolidated cash flows
Year ended Year ended
31 December 31 December
2019 2018
GBP'000 GBP'000
Cash flow from operating activities:
Net cash used in operating activities (560) (2,259)
------------------------------------------- ------------- -------------
Cash flow from investing activities:
=========================================== ============= =============
Purchase of property, plant and
equipment (2) (25)
=========================================== ============= =============
Disposal of property, plant and
equipment - 2
=========================================== ============= =============
Purchase of intangible assets (711) (229)
=========================================== ============= =============
Investment in associate company
(note 3) - (156)
=========================================== ============= =============
Tax received 142 -
=========================================== ============= =============
Loans to third party - 787
=========================================== ============= =============
Interest received 7 67
Net cash (used)/generated in investing
activities (564) 446
------------------------------------------- ------------- -------------
Cash flow from financing activities:
=========================================== ============= =============
Net funds received from issue of
shares - 1,061
=========================================== ============= =============
Net cash generated from financing
activities - 1,061
------------------------------------------- ------------- -------------
Net decrease in cash and cash equivalents (1,124) (752)
=========================================== ============= =============
Cash and cash equivalents at beginning
of the period 1,287 2,039
------------- -------------
Cash and cash equivalents at end
of the period 163 1,287
------------------------------------------- ------------- -------------
Notes to the consolidated financial statements
1. Basis of preparation
The financial statements have been prepared in accordance with
International Financial Reporting Standards (IFRS) as adopted by
the European Union (EU), IFRIC interpretations and those parts of
the Companies Act 2006 applicable to companies reporting under
IFRS. The financial statements have been prepared under the
historical cost convention as modified by the measurement of
certain investments at fair value and have been prepared on a going
concern basis.
The financial information set out in this announcement does not
constitute the Group's statutory accounts for the year ended 31
December 2019 or the year ended 31 December 2018 under the meaning
of Section 434 the Companies Act 2006 but is derived from those
accounts. Statutory accounts for the years ended 31 December 2019
and 31 December 2018 have been reported on by the Independent
Auditors. The Independent Auditors' Reports on the Annual Report
and Financial Statements for 2018 was unmodified, did not draw
attention to any matters by way of emphasis and did not contain a
statement under 498(2) or 498(3) of the Companies Act 2006. The
Independent Auditors' Reports on the Annual Report and Financial
Statements for 2019, did not contain a statement under 498(2) or
498(3) of the Companies Act 2006, but did include a material
uncertainty in relation to going concern.
The statutory accounts are available at www.orioleresources.com
and will be delivered to the Registrar of Companies following the
Company's Annual General Meeting. The statutory accounts for the
year ended 31 December 2018 have been filed with the Registrar of
Companies.
It is the prime responsibility of the Board to ensure the
Company and the Group remains a going concern. At 31 December 2019
the Group had cash and cash equivalents of GBP0.16m, expected
incoming funds from asset-realisations (of which GBP0.17m has now
been received), an expectation of further research and development
tax credits, and no borrowings. The Company and the Group have
minimal contractual expenditure commitments. Following the
successful equity placing which raised net funds of GBP0.25m, the
Board considers the present funds sufficient to maintain the
working capital of the Company and Group for a period of at least
12 months from the date of signing the annual report and financial
statements based on the forecasts of the Directors. For these
reasons the Directors continue to adopt the going concern basis in
the preparation of the financial statements although there can be
no guarantee that the funds from the asset realisations will inflow
as expected. As noted above , in the Audit Report for the year
ended 31 December 2019 the auditors have made reference to going
concern by way of a material uncertainty.
2. Segment reporting
The Group's main operations are located in Turkey, East Africa
and West Africa. The Group's head office is located in the UK and
provides corporate and support services to the Group and researches
new areas of exploration opportunities. The management structure
and the management reports received by the Directors and used to
make strategic decisions reflect the split of operations.
a) The allocation of assets and liabilities by segment is
as follows:
Exploration Group
====================================
UK support
Turkey East Africa West Africa & other Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
============================= ======== ============ ============ =============== ===========
At 31 December 2019
============================== ======== ============ ============ =============== ========
Intangible assets - - 7,244 - 7,244
============================== ======== ============ ============ =============== ========
Property, plant and
equipment 1 - - 20 21
============================== ======== ============ ============ =============== ========
Investment in associate
companies - 2,250 - - 2,250
============================== ======== ============ ============ =============== ========
Cash and other assets 80 165 41 201 487
============================== ======== ============ ============ =============== ========
Liabilities (98) - (5) (340) (443)
============================== ======== ============ ============ =============== ========
Inter-segment (2,617) - (2,213) 4,830 -
------------------------------ -------- ------------ ------------ --------------- --------
Net assets/(liabilities) (2,634) 2,415 5,067 4,711 9,559
------------------------------ -------- ------------ ------------ --------------- --------
Exploration Group
------------------------------------
UK support
Turkey East Africa West Africa & other Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 31 December 2018
=============================== ======== ============ ============ =============== ========
Intangible assets - - 6,780 - 6,780
=============================== ======== ============ ============ =============== ========
Property, plant and
equipment 1 - 1 25 27
=============================== ======== ============ ============ =============== ========
Investment in associate
companies - 2,250 - - 2,250
=============================== ======== ============ ============ =============== ========
Cash and other assets 203 187 284 1,921 2,595
=============================== ======== ============ ============ =============== ========
Liabilities (136) - (3) (181) (320)
=============================== ======== ============ ============ =============== ========
Inter-segment (2,422) - (1,967) 4,389 -
------------------------------- -------- ------------ ------------ --------------- --------
Net assets/(liabilities) (2,354) 2,437 5,095 6,154 11,332
------------------------------- -------- ------------ ------------ --------------- --------
b) The allocation of profits and losses for the year by segment is as follows:
Exploration Group
------------------------------------ -----------
UK support
Turkey East Africa West Africa & other Total
-------- ------------ ------------ ----------- ----------
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
-------------------------- -------- ------------ ------------ ----------- --------
2019
=========================== ======== ============ ============ =========== ========
Administration expenses (373) - (142) (1,034) (1,549)
=========================== ======== ============ ============ =========== ========
Depreciation charge (1) - - (6) (7)
=========================== ======== ============ ============ =========== ========
Other income/(losses) 149 446 - 5 600
=========================== ======== ============ ============ =========== ========
Share of associate
company losses - (338) - - (338)
=========================== ======== ============ ============ =========== ========
Exchange gains/(losses) (5) - (437) (3) (445)
=========================== ======== ============ ============ =========== ========
Inter-segment charges (148) - (103) 251 -
=========================== ======== ============ ============ =========== ========
Income tax (63) - - 142 79
--------------------------- -------- ------------ ------------ ----------- --------
Profit/(loss) for year (441) 108 (682) (645) (1,660)
--------------------------- -------- ------------ ------------ ----------- --------
Exploration Group
------------------------------------ -----------
UK support
Turkey East Africa West Africa & other Total
-------- ------------ ------------ ----------- --------
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
2018
======== ============ ============ =========== ========
Administration expenses (281) - (197) (1,324) (1,802)
=========================== ======== ============ ============ =========== ===========
Depreciation charge (1) - (1) (2) (4)
=========================== ======== ============ ============ =========== ===========
Other income/(losses) 120 (1,430) - 698 (612)
=========================== ======== ============ ============ =========== ===========
Share of associate
company losses - (2,140) - - (2,140)
=========================== ======== ============ ============ =========== ===========
Exchange gains/(losses) (65) - 77 (74) (62)
=========================== ======== ============ ============ =========== ===========
Inter-segment charges (131) - (209) 340 -
=========================== ======== ============ ============ =========== ===========
Income tax (41) - - - (41)
--------------------------- -------- ------------ ------------ ----------- -----------
Profit/(loss) for year (399) (3,570) (330) (362) (4,661)
--------------------------- -------- ------------ ------------ ----------- -----------
3. Investment in equity-accounted associates
Group
------------------
2019 2018
GBP'000 GBP'000
At 1 January 2,250 5,524
Ex change movements (108) 140
Share of losses (126) (2,042)
Additions - 156
Provision for impairment - (1,430)
Release of impairment provision 446 -
Loss on change of ownership interest (212) (98)
At 31 December 2,250 2,250
====================================== ======== ========
The balance at 31 December represents the Company's investment
in Thani Stratex Resources Limited ("TSRL") group of companies. The
shareholding interest reduced from 29.0% at 31 December 2018 to
26.1% at 31 December 2019 .
4. Financial assets
Financial assets at fair value through other comprehensive
income
Group
=====================
2019 2018
GBP'000 GBP'000
At 1 January 414 581
Disposals (9) -
Fair value adjustment (240) (167)
At 31 December 165 414
======================= ======= ============
Financial assets at fair value through other comprehensive
income comprises an 11.7% investment in Tembo Gold Corporation. The
8% investment in Aforo Resources Limited was written off during the
year, resulting in a loss of GBP227k.
The fair value of the investment in Tembo has been valued under
level 1 of the fair value hierarchy and has been reduced to GBP165k
following a reduction in the quoted value of its shares on the
Toronto Stock Exchange. This has resulted in a loss of GBP13k being
recognised in the consolidated statement of comprehensive
income.
5. Intangible assets
The Group's Intangible assets comprise entirely of exploration
assets.
Group
------------------
2019 2018
Cost GBP'000 GBP'000
------------------- -------- --------
Cost at 1 January 6,780 6,484
Exchange movements (328) 67
Additions 792 229
At 31 December 7,244 6,780
=================== ======== ========
The capitalised cost of the principal projects and the additions
during the year are as follows:
Capitalised cost Additions in year
-------------------- --------------------
2019 2018 2019 2018
GBP'000 GBP'000 GBP'000 GBP'000
------------------ --------- -------- --------- ---------
West Africa
Dalafin 6,225 6,551 - 67
Bibemi / Wapouze 1,019 229 792 229
Total Intangible
assets 7,244 6,780 792 296
------------------- --------- -------- --------- ---------
** ENDS **
Competent Persons Statement
The information in this release that relates to Exploration
Results has been compiled by Claire Bay (VP Exploration and
Business Development). Claire Bay (MGeol, CGeol) is a Competent
Person as defined in the JORC code and takes responsibility for the
release of this information. Claire has reviewed the information in
this announcement and confirms that she is not aware of any new
information or data that materially affects the information
reproduced here.
For further information please visit www.orioleresources.com ,
@OrioleResources on Twitter, or contact:
Oriole Resources Plc Tel: +44 (0)20 7830 9650
Tim Livesey / Bob Smeeton / Claire Bay
Blytheweigh (IR/PR contact) Tel: +44 (0)20 7138 3204
Tim Blythe / Megan Ray / Rachael Brooks
Grant Thornton UK LLP (Nomad) Tel: +44 (0)20 7383 5100
Samantha Harrison / Niall McDonald
WH Ireland (Corporate Broker) Tel: +44 (0)20 7220 1666
Adrian Hadden / Darshan Patel
/ Lydia Zychowska
Notes to Editors:
Oriole Resources PLC is an AIM-quoted exploration company,
operating in Africa and Europe. It is focused on early-stage
exploration in Cameroon and the more advanced Senala gold project
in Senegal, where IAMGOLD has the option to spend US$8m to earn a
70% interest. The Company has a number of interests and royalties
in companies operating throughout Africa and Turkey and is
assessing new opportunities in both regions.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
FR KKNBQCBKDBNB
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