TIDMSTGR

RNS Number : 1777P

Stratmin Global Resources PLC

30 September 2013

30 September 2013

StratMin Global Resources Plc

("StratMin" or the "Company")

Unaudited Half Year Results for the Six Months to 30 June 2013

StratMin (AIM: STGR), the graphite production and exploration company with assets in Madagascar, announces half year results for the six months to 30 June 2013.

Summary

 
 --   Management team in London and Madagascar strengthened 
 --   Production of graphite commenced on 9(th) September 2013 
 --   A complete metallurgy review is underway 
 --   Path being identified to increase carbon content and overall 
       production levels 
 --   Loss after tax for the period was GBP1.0m, reflecting 
       no production during the first half 
 --   Cash at period end was GBP0.15m, with additional funding 
       of GBP0.75m since 30 June 
 

Manoli Yannaghas, Managing Director commented, "We have made a good start on overcoming the management and operational challenges we faced in developing the Company's graphite assets. I believe we now have a solid base - in terms of team, plant and commercial arrangements - from which to move forward."

For further information please visit www.stratminglobal.com or contact:

 
 StratMin Global Resources Plc 
 Gobind Sahney (Chairman) / Manoli Yannaghas    +44 (0) 20 7467 
  (Managing Director)                            1700 
 
 Peel Hunt LLP (Nomad & Broker)                  +44 (0) 20 7418 
  Matthew Armitt / Harry Florry                   8900 
 
 Tavistock Communications (Financial PR & 
  IR) 
                                                +44 (0) 20 7920 
 Simon Hudson / Conrad Harrington                3150 
 

Statement

In the Operations Update announced on 6(th) September 2013, we said that the calibration of the plant, including the drying plant, was complete and that the plant was ready to produce with ore feed capacity of 30 tonnes per hour on a nine hour shift per day basis. Production commenced on 9(th) September and we can confirm that the plant is now in production on a modified schedule which takes into account a production ramp up in line with mechanical best practice as well as economic considerations around short term grade and recovery improvement.

At the beginning of the period under review, we completed the acquisition of the Graphmada company, which owned and operated two graphite mining licenses in Madagascar, and saw our shares admitted to trading on the AIM market of the London Stock Exchange. Much of the rest of the first half of 2013 was spent addressing, and resolving, legacy issues of management, oversight and modelling at the acquired operations. In June we announced, that we had appointed two key new in-country managers - Wilhelm Reitz as Mine & Plant Manager and Olivier de la Barre as Country Manager. Following the installation of these two experienced managers, we appointed Manoli Yannaghas, who was then a non-executive Director, as the full time executive Managing Director of StratMin.

As previously announced, a complete metallurgy review is underway at SGS and recently appointed Mintek, both under the guidance of Promet Dadi, the Company's technical partner. The Company's technical team will, through the result led solutions from the test-work, continue to identify and upgrade plant performance.

The first metallurgical test work was carried out on 20kgs of material from Mining Block 1 of the Lohorano property. Bench scale flotation test-work (simulating the existing Lohorano plant) achieved a maximum product grade of 86% carbon and an average grade of 82%. At the time additional gravity separation test-work was conducted on this concentrate in the laboratory using technology not currently available at the Lohorano plant and achieved a product with 92% carbon with 90% of the flakes at +70 mesh. These preliminary results are subject to further test work. It is anticipated that the results of the further test work which will include details of the potential recovery rates will be announced shortly.

It is anticipated that any plant upgrades to achieve a 90% carbon content or higher, will be relatively low-cost and that the additional processes required can be retrofitted to the existing plant without significant interruption to production. A first purchase order for 200 tonnes has been announced of 70+% carbon content to Grafitbergbau Kaisersberg.

Finally, we also announced in September 2013 that the Company had raised GBP750,000 in an equity placing to provide working capital and funds to carry out the result led plant improvements. The Directors assure shareholders that the Board and management are committed to enhancing value. We appreciate their continued support.

Unaudited Group Income Statement

For the 6 months ended 30 June 2013

 
                                                 6 months     12 months 
                                6 months to            to            to 
                                30 Jun 2013   30 Jun 2012   31 Dec 2012 
                                  Unaudited     Unaudited       Audited 
                                    GBP'000       GBP'000       GBP'000 
-----------------------------  ------------  ------------  ------------ 
 
 Revenue                                  8             -             - 
 Cost of sales                         (85)             -             - 
-----------------------------  ------------  ------------  ------------ 
 Gross margin                          (77)             -             - 
 
 Administrative expenses              (908)         (369)         (847) 
 Other operating income                   -             -             - 
 Other operating expenses                 -             -         (389) 
 Operating loss                       (985)         (369)       (1,236) 
 Finance costs                         (61)           (8)           (8) 
 (Loss)/gain on disposal                  -         (330)             - 
  of investments 
 Finance income                           -             -             - 
-----------------------------  ------------  ------------  ------------ 
 Loss before taxation               (1,046)         (707)       (1,244) 
 
 Taxation expense                         -             -             - 
 
 Loss for the period                (1,046)         (707)       (1,244) 
 
 
                                      Pence         Pence         Pence 
-----------------------------  ------------  ------------  ------------ 
 Loss per share attributable 
  to owners of the Company 
  for the period: 
 Basic and diluted                   (2.0)p       (10.3)p       (16.0)p 
-----------------------------  ------------  ------------  ------------ 
 

Unaudited Group Statement of Comprehensive Income

For the 6 months ended 30 June 2013

 
                                            6 months     6 months    12 months 
                                                  to           to           to 
                                         30 Jun 2013  30 Jun 2012  31 Dec 2012 
                                           Unaudited    Unaudited      Audited 
                                             GBP'000      GBP'000      GBP'000 
---------------------------------------  -----------  -----------  ----------- 
 
Loss for the period                          (1,046)        (707)      (1,244) 
 
Other comprehensive income/(expense): 
Exchange differences on translation                             - 
 of foreign operations                             -                         - 
Market value adjustment to investments          (15)          215          189 
 
 
Other comprehensive income/(expense) 
 for the period                                 (15)          215          189 
 
 
  Total comprehensive expense for 
   the period attributable to equity 
   holders of the parent                     (1,061)        (492)      (1,055) 
 
 

Unaudited Group Statement of Financial Position

As at 30 June 2013

 
                                              30 Jun      30 Jun   31 Dec 2012 
                                                2013        2012 
                                   Notes   Unaudited   Unaudited       Audited 
                                             GBP'000     GBP'000       GBP'000 
--------------------------------  ------  ----------  ----------  ------------ 
 NON-CURRENT ASSETS 
 Goodwill                                      4,402           -             - 
 Fixed assets                                  1,012           -             - 
 Available for sale investments      5            23       1,084           859 
 Loans to associates                               -           -           118 
--------------------------------  ------  ----------  ----------  ------------ 
                                               5,437       1,084           977 
--------------------------------  ------  ----------  ----------  ------------ 
 CURRENT ASSETS 
 Trade and other receivables                     105          14            60 
 Prepaid expenses & accrued 
  income                                          27           -             - 
 Cash and cash equivalents                       151         124           185 
--------------------------------  ------  ----------  ----------  ------------ 
                                                 283         138           245 
--------------------------------  ------  ----------  ----------  ------------ 
 TOTAL ASSETS                                  5,720       1,222         1,222 
--------------------------------  ------  ----------  ----------  ------------ 
 
 EQUITY 
 Share capital                       6         2,421         327           362 
 Share premium                                28,227      27,804        28,170 
 Shares to be issued                 7         1,564           -             - 
 Investment reserve                            (682)       (641)         (667) 
 Merger reserve                                  750           -             - 
 Other reserve                                   116       2,372         2,372 
 Retained earnings                          (27,087)    (28,741)      (29,163) 
--------------------------------  ------  ----------  ----------  ------------ 
 Equity attributable to owners 
  of the Company and total 
  equity                                       5,309       1,121         1,074 
--------------------------------  ------  ----------  ----------  ------------ 
 
 CURRENT LIABILITIES 
 Trade and other payables                        411         101           148 
                                                 411         101           148 
--------------------------------  ------  ----------  ----------  ------------ 
 
                                               5,720       1,222         1,222 
--------------------------------  ------  ----------  ----------  ------------ 
 

Notes to the interim statement

For the 6 months ended 30 June 2013

1. General information

StratMin Global Resources plcis a company incorporated in the United Kingdom under the Companies Act 2006. The Company's main activity is that of an investment company.

The Company's functional currencies are Sterling and US dollar. The Company's financial statements are presented in Sterling, which is the Company's presentational currency.

2. Basis of preparation

The financial information set out in this interim report for the six months ended 30 June 2013 are unaudited and do not constitute statutory accounts as defined in Section 434 of Companies Act (2006). The group's statutory financial statements for the period ended 31 December 2012, prepared under International Financial Reporting Standards (IFRS), have been filed with the Registrar of Companies. The auditor's report on those financial statements was unqualified and did not contain a statement under section 498 (2) or (3) of the Companies Act 2006.

The interim financial statements of StratMin Global Resources plc have been prepared in accordance with the recognition and measurement principles of International Financial Reporting Standards (IFRS) as adopted by the European Union (EU) and on the same basis and using the same accounting policies as used in the Company's Annual Report and Accounts for the year ended 31 December 2012.

These financial statements have been prepared on a going concern basis under the historical cost convention. The Directors believe that the going concern basis is appropriate for the preparation of these interim financial statements as the Company is in a position to meet all its liabilities as they fall due. These interim financial statements for the six months to 30 June 2013 were approved by the board on 30 September 2013.

3. Loss per share

Loss per share is calculated by reference to the weighted average of 51,800,317 ordinary shares in issue during the period (31 December 2012 - 7,727,900 and 30 June 2012 - 6,834,736). The prior year figures have been adjusted for comparison purposes to reflect the share consolidation.

The diluted loss per share is the same as the basic loss per share as the losses in each period have an anti-dilutive effect.

4. Dividend

The board is not recommending the payment of an interim dividend for the period ended 30 June 2013.

5. Financial assets

 
                                             6 months      6 months 
                                                   to            to    Year ended 
                                          30 Jun 2013   30 Jun 2012   31 Dec 2012 
                                              GBP'000       GBP'000       GBP'000 
---------------------------------------  ------------  ------------  ------------ 
 
Cost at 1 January                                 859         1,435           579 
Purchases of investments                            -           820           827 
Proceeds from sale of investments                   -         (200)         (347) 
Transfer to investment in subsidiaries          (821) 
(Loss)/gain on disposal of investments              -         (330)         (389) 
---------------------------------------  ------------  ------------  ------------ 
Cost of investments at period end                  38         1,725           670 
Market value adjustment                          (15)         (641)           189 
---------------------------------------  ------------  ------------  ------------ 
Net book value at period end                       23         1,084           859 
---------------------------------------  ------------  ------------  ------------ 
 

6. Share capital

 
                               30 Jun 2013       30 Jun       31 Dec 
                                                   2012         2012 
                                    No'000       No'000       No'000 
----------------------------  ------------  -----------  ----------- 
 Issued and fully paid: 
 Ordinary shares of GBP0.04     60,523,666   81,789,207   90,610,472 
 
                                   GBP'000      GBP'000      GBP'000 
 Issued and fully paid: 
 Ordinary shares of GBP0.04          2,421          327          362 
----------------------------  ------------  -----------  ----------- 
                                     2,421          327          362 
----------------------------  ------------  -----------  ----------- 
 

On 14 January 2013, a 1 for 10 share consolidation took place to bring the number of shares in issue from 90,610,470 to 9,061,047.

On 29 January 2013, as a result of the acquisition of Graphmada Equity Pte Ltd 51,000,000 new ordinary shares were issued of 4p each at a price equivalent to 5p per share.

On 25 February 2013, 216,000 shares were issued of 4p at a price equivalent to 50p per share to satisfy certain existing commitments.

On 7 March 2013, 102,500 shares were issued at 4p per share as a result of the exercise of warrants.

On 16 April 2013, 17,499 shares were issued at 4p per share as the result of the exercise of warrants.

On 11 June 2013, 126,620 shares were issued of 4p at a price equivalent to 30p per share to satisfy certain existing commitments.

7. Post Balance Sheet Events

On 8 July 2013, the Company issued 5,010,970 new ordinary shares of 4p each as a result of the conversion of the existing Loan Notes of GBP1,503,000 plus the accrued interest.

On 17 September 2013, the Company issued 4,166,667 new ordinary shares of 4p each as a result of a placing at 18 pence per share, raising GBP750,000 before expenses. As part of the placing, warrants to subscribe for 4,166,667 ordinary shares were issued to the placees, exercisable at 20 pence per share, for a period of nine months from the date of admission.

8. Change of Registered Address

The Company has changed the address of its registered office to:

Stratmin Global Resources PLC

30 Percy St

London

W1T 2DB

9. Distribution

The half yearly report for the six-month period ended 30 September 2013 will shortly be available on the Company's website (www.stratminglobal.com) or directly from the Company at its new registered address.

-ends-

This information is provided by RNS

The company news service from the London Stock Exchange

END

IR KMGZLVNRGFZM

Stratmin Global (LSE:STGR)
Historical Stock Chart
From Jun 2024 to Jul 2024 Click Here for more Stratmin Global Charts.
Stratmin Global (LSE:STGR)
Historical Stock Chart
From Jul 2023 to Jul 2024 Click Here for more Stratmin Global Charts.