TIDMSTGR
RNS Number : 7437S
Stratmin Global Resources PLC
29 September 2014
29 September 2014
StratMin Global Resources Plc
("StratMin" or the "Company")
Unaudited Half Year Results for the Six Months to 30 June
2014
StratMin (AIM: STGR), the graphite production and exploration
company with assets in Madagascar, today announces its half year
results for the six months to 30 June 2014.
Highlights:
-- Appointment of Laurie Hunter as Non-Executive Chairman,
strengthening the Board with his experience and knowledge of
Madagascar;
-- The appointment of MarsdenGray, providing technical expertise
with the development of the Lohorano plant;
-- Successful completion of a GBP2.5 million equity placing in March;
-- Full repayment of the Darwin Convertible Loan Instrument,
thereby strengthening the Company's balance sheet;
-- Installation of pebble mill/scrubber thereby allowing the
plant to produce graphite concentrate of up to 92 per cent carbon;
and
-- Successful production runs producing commercial grade graphite.
Post-period highlights:
-- Two sales contracts with large international graphite marketing companies;
-- Identification of further exploration targets at Lohorano,
confirming the presence of significant graphite mineralization
beyond the existing deposit; and
-- Commencement of advanced negotiations with two parties over long term offtake agreements.
Manoli Yannaghas, Managing Director, commented:
"The last six months have been a crucial turning point for
Stratmin and I am delighted with our progress.
"The two secured sales contracts have extended our reach into
the European and US graphite markets and I am confident that this
significant step forward will lead to long term relationships and
agreements for StratmMn.
"Since declaring commercial production in April 2014, we have
been successful in producing large flake, commercial grade
concentrate of up to 92 per cent carbon.
"The Board looks forward to updating the market with our sales
progress over the next quarter and would like to thank our
shareholders for their confidence and continued support."
For further information please visit www.stratminglobal.com or
contact:
StratMin Global Resources Plc +44 (0) 20 3691
Manoli Yannaghas (Managing Director) 6160
Strand Hanson (Nomad & Financial Adviser) +44 (0) 20 7409
James Spinney / Ritchie Balmer 3494
Hume Capital Securities Plc (Sole Broker) +44 (0) 20 3693
Jon Belliss / Abigail Wayne 1470
Blytheweigh (Financial PR) +44 (0) 20 7138
Tim Blythe / Halimah Hussain / Camilla Horsfall 3204
Managing Director's Statement
The period from the beginning of the year to 30(th) June 2014
saw Stratmin take numerous significant steps forward in its
technical and corporate development. At the start of the year, the
plant was unable to produce concentrate with a carbon content
greater than 80%, however following a redraw of the plant
flowsheets (based on a metallurgy report produced by SGS), an
attrition stage was added in March 2014 thereby allowing the new
plant set up to immediately deliver up to 92% carbon in its
concentrate.
Having demonstrated the ability to produce commercial grade
concentrate, the Lohorano plant carried out production runs during
April to July that consistently produced saleable graphite on a one
shift per day basis. This product was subsequently sold to two
recognised graphite marketing firms based in the United States and
Europe.
Post period end, in the quarter to 30th September 2014,
production has been minimal (and linked directly to sales orders)
in order to preserve cash while the Company firmed up sales
contracts. As at the date of this report, discussions are at an
advanced stage with two parties over longer term off take
agreements, which, assuming successful conclusion, will see
production pick up in the near term.
Further technical improvements in the third quarter of this year
were also carried out and included an upgrade in the dewatering
process, better grade consistency in the concentrate through
further development in the flotation process and more accurate
screening capability. The Company has also upgraded its maintenance
department and supply chain in order to minimise production delays
due to the acquisition of spare parts.
In terms of exploration, a new exploration programme commenced
at Lohorano in June 2014, which focused on two additional targets
within the license area, both of which have similar surface
characteristics to the existing deposit area. At present, these two
areas are the subject of geophysics; pitting; trenching and in the
future, likely drilling. As well as this exploration, the Company
continues to refine its mining plan covering the existing resource
in order to maximise mining efficiency.
Significant progress has also been made at a corporate level.
Laurie Hunter joined as Non-Executive Chairman in March 2014 and
his understanding of Madagascar has been, and continues to be, an
asset for the Stratmin Board. The Company successfully raised
GBP2.5 million in an equity placing in March 2014, with part of the
proceeds being used to fully repay the outstanding debt owed to
Darwin Strategic Limited The Company has also expended great
efforts in redesigning its financial controls in order to better
allow it to plan, control and understand the costs associated with
the business, much of which you, the shareholder, can see in these
interims.
Again I would like to thank shareholders for their continuing
support, and look forward to providing the market with further
updates on our progress as and when appropriate.
Manoli Yannaghas
Managing Director
Unaudited Group Income Statement
For the 6 months ended 30 June 2014
6 months 12 months
6 months to to to
30 Jun 2014 30 Jun 2013 31 Dec 2013
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
----------------------------- ------------ ------------ ------------
Revenue - 8 46
Cost of sales - (85) (37)
----------------------------- ------------ ------------ ------------
Gross profit / (loss) - (77) 9
Administrative expenses (1,220) (908) (2,061)
Other operating income - - -
Other operating expenses (11) - (104)
Operating loss (1,231) (985) (2,156)
Finance costs (153) (61) (351)
(Loss)/gain on disposal (13) - -
of investments
Finance income - - -
----------------------------- ------------ ------------ ------------
Loss before taxation (1,397) (1,046) (2,507)
Taxation expense - - -
Loss for the period (1,397) (1,046) (2,507)
Pence Pence Pence
----------------------------- ------------ ------------ ------------
Loss per share attributable
to owners of the Company
for the period:
Basic and diluted (1.55p) (2.0p) (4.15p)
----------------------------- ------------ ------------ ------------
Unaudited Group Statement of Comprehensive Income
For the 6 months ended 30 June 2014
6 months 6 months 12 months
to to to
30 Jun 2014 30 Jun 2013 31 Dec 2013
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
--------------------------------------- ----------- ----------- -----------
Loss for the period (1,397) (1,046) (2,507)
Other comprehensive income/(expense):
Exchange differences on translation
of foreign operations - - (8)
Market value adjustment to investments (11) (15) (12)
Other comprehensive income/(expense)
for the period (11) (15) (20)
Total comprehensive expense for
the period attributable to equity
holders of the parent (1,408) (1,061) (2,527)
Unaudited Group Statement of Financial Position
As at 30 June 2014
30 Jun 30 Jun 31 Dec
2014 2013 2013
Notes Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
-------------------------------- ------ ---------- ---------- ---------
NON-CURRENT ASSETS
Goodwill 5,012 5,012 5,012
Fixed assets 1,124 804 804
Available for sale investments 15 23 26
Loans to associates - - -
-------------------------------- ------ ---------- ---------- ---------
6,151 5,839 5,842
-------------------------------- ------ ---------- ---------- ---------
CURRENT ASSETS
Inventories 252 - 228
Trade and other receivables 219 105 190
Prepaid expenses & accrued
income 70 27 -
Cash and cash equivalents 369 151 420
-------------------------------- ------ ---------- ---------- ---------
910 283 838
-------------------------------- ------ ---------- ---------- ---------
TOTAL ASSETS 7,061 6,122 6,680
-------------------------------- ------ ---------- ---------- ---------
EQUITY
Share capital 5 4,027 2,421 2,797
Share premium 31,807 28,227 30,167
Shares to be issued - 1,564 -
Investment reserve (23) (682) (12)
Merger reserve 23,460 23,460 23,460
Reverse acquisition reserve (48,478) (48,478) (48,478)
Other reserve 153 116 145
Retained earnings (4,334) (917) (2,937)
-------------------------------- ------ ---------- ---------- ---------
Equity attributable to owners
of the Company and total
equity 6,612 5,711 5,142
-------------------------------- ------ ---------- ---------- ---------
CURRENT LIABILITIES
Trade and other payables 317 411 148
Short term borrowings - - 847
317 411 1,510
NON-CURRENT LIABILITIES
Decommissioning obligation 132 - 28
-------------------------------- ------ ---------- ---------- ---------
7,061 6,122 6,680
-------------------------------- ------ ---------- ---------- ---------
Notes to the interim statement
For the 6 months ended 30 June 2014
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 Mining Investments.
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 2014 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 2013, 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
2013.
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 2014 were
approved by the board on 25 September 2014.
3. Basis of Consolidation
The Group's consolidated financial statements incorporate the
financial statements of StratMin Global Resources Plc (the
"Company") and entities controlled by the Company (its
subsidiaries). Subsidiaries are entities over which the Group has
the power to govern the financial and operating policies generally
accompanying a shareholding of more than one half of the voting
rights. The existence and effect of potential voting rights that
are currently exercisable or convertible are considered when
assessing whether the Group controls another entity.
Subsidiaries are fully consolidated from the date on which
control is transferred to the Group. They are de-consolidated from
the date that control ceases.
Inter-company transactions, balances and unrealised gains on
transactions between Group companies are eliminated. Profits and
losses resulting from inter-company transactions that are
recognised in assets are also eliminated. Accounting policies of
subsidiaries have been changed where necessary to ensure
consistency with the policies adopted by the Group.
Where necessary, adjustments are made to the financial
statements of subsidiaries to bring the accounting policies used
into line with those used by the Group.
All intra-group transactions, balances, income and expenses are
eliminated on consolidation.
4. Loss per share
Loss per share is calculated by reference to the weighted
average of 89,924,985 ordinary shares in issue during the period
(31 December 2013 - 60,349,602 and 30 June 2013 - 51,800,317). 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 2014.
5. Share capital
30 Jun 2014 30 Jun 31 Dec
2013 2013
No'000 No'000 No'000
---------------------------- ------------ ----------- -----------
Issued and fully paid:
Ordinary shares of GBP0.04 100,669,953 60,523,666 69,920,756
GBP'000 GBP'000 GBP'000
Issued and fully paid:
Ordinary shares of GBP0.04 4,027 2,421 2,797
---------------------------- ------------ ----------- -----------
4,027 2,421 2,797
---------------------------- ------------ ----------- -----------
On 12 March 2014, the Company issued 27,777,780 new ordinary
shares of 4p at a placing price of 9p each with institutional
investors and high net worth investors, raising GBP2.5 million.
On 31 March 2014, 2,971,419 shares were issued at 4p per share
to certain Directors of the Company in lieu of unpaid salary and
fee and to satisfy existing commitments.
6. Distribution
The half yearly report for the six-month period ended 30 June
2014 will shortly be available on the Company's website
(www.stratminglobal.com) or directly from the Company at its
registered office address.
-ends-
This information is provided by RNS
The company news service from the London Stock Exchange
END
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