TIDMSTGR
RNS Number : 2449L
Stratmin Global Resources PLC
30 September 2016
30 September 2016
StratMin Global Resources Plc
("StratMin" or the "Company")
Unaudited Half Year Results for the Six Months to 30 June
2016
StratMin (AIM: STGR), announces its unaudited half year results
for the six months to 30 June 2016.
Summary of events for the six months to 30 June 2016
-- Divestment of Graphmada group of companies to Bass Metals Ltd announced
-- Board restructured to reduce costs, resignation of Messrs.' Hunter and Marvin
-- 12,000,000 ordinary shares of 0.01p issued under an external placing to raise GBP300,000
Summary of post Balance Sheet Events
-- Divestment of Graphmada group of companies to Bass Metals Ltd completed
-- Change of Nominated Adviser with the appointment of Allenby Capital
-- Directorate change, resignation of Mr David Premraj and appointment of Mr Zeg Choudhry
-- Appointment of VSA Capital as financial adviser
-- US$1.5m non-recourse loan secured against Bass shareholding to fund Vatomaina joint-venture
For further information please visit www.stratminglobal.com or
contact:
StratMin Global Resources Plc +44 (0) 20
Brett Boynton, CEO 3691 6160
Allenby Capital (Nominated Adviser
& Broker)
John Depasquale/ Nick Harriss/Liz +44 (0) 20
Kirchner 3328 5656
Optiva Securities (Broker) +44 (0) 20
Christian Dennis 3137 1903
VSA Capital Limited (Financial
Adviser) +44 (0) 20
Andrew Raca 3005 5000
CEO's Statement
The successful optimisation program during the six-months to 31
December 2015 enabled the Company to bring Graphmada's flake
graphite mine and processing plant to operational level breakeven.
This achievement generated significant interest from a number of
parties wanting exposure to a producing graphite mine. After
discussing a potential sale of Graphmada with the Company's 6.25
per cent. joint-venture partner, Australian Stock Exchange ("ASX")
listed Bass Metals Ltd ("Bass"), it was determined that the best
solution was a full divestment of Graphmada to Bass in order to
capture the higher valuations available on the Australian market,
for graphite assets. This transaction was negotiated, agreed and
executed during the reporting period with final completion
announced on 14 September 2016.
The divestment of the Company's 93.75 per cent. interest in
Graphmada for a total consideration of up to A$15.25 million was
concluded at a considerable premium to the market capitalisation of
the Company at the time of announcement. A$8 million in equity and
A$5 million in royalties remain to be settled, subject to certain
conditions, as previously announced. Management believes this value
stream will generate significant shareholder value as a source of
funding for future projects or returns to shareholders.
The Company recently announced a US$1.5 million non-recourse
loan facility (the "Loan") secured against the block of 75 million
Bass ordinary shares (the "Bass Shares") received as part
consideration for the Graphmada divestment. This transaction values
the Bass Shares at a significant premium to current market value
and once again shows management's ability to identify sources of
unrecognised value and to crystallise that value for
shareholders.
The Loan will be utilised to fund the Company's joint venture
commitment to Tirupati Carbons and Chemicals Pvt Ltd for the
development of the Vatomaina 12,000 ton per annum flake graphite
project in Madagascar. The Vatomaina project will take advantage of
the management's in-country Madagascar experience generated over
the last 18 months partnering with Tirupati, to deliver low cost,
high grade, graphite production for which we have already built
markets in the USA, Europe and Asia. This project is expected to be
commissioned in October 2017 and will provide a source of cash flow
for future project development, or, if valuations are compelling,
may in due course be partially or fully divested in order to
capture any premium.
StratMin now has a significant interest in an exciting joint
venture under development with a proven partner and on-going value
to be captured from the Graphmada divestment. Our successful
transaction track record has resulted in the Company being shown
numerous opportunities to extend our interest in graphite and to
diversify into other commodities where we have a core
competency.
The Company remains classified pursuant to Rule 15 of the AIM
Rules as an AIM Rule 15 cash shell. The Company is therefore
required to make an acquisition or acquisitions which constitute a
reverse takeover transaction under the AIM Rules within six months
of becoming an AIM Rule 15 cash shell (which was on completion of
the Bass disposal) or be re-admitted to trading on AIM as an
investing company under the AIM Rules (which requires the raising
of at least GBP6 million), failing which, the Ordinary Shares will
then be suspended from trading on AIM. After six months of
suspension, the Ordinary Shares will then be cancelled from trading
on AIM.
The last few weeks has seen a number of key corporate
relationships being changed and we also welcome our new Director,
Mr Zeg Choudhry, who brings a wealth of London stock market
experience to the team. We have also added Mr Richard Jacob to the
team in London and he joins us as our financial controller. Richard
has worked for a number of years with our Company Secretary, Mr Sam
Quinn. Zeg, Sam and Richard give us a strong permanent presence in
London, which we see as an essential component as we build out
StratMin with our new projects and business interests.
It remains for me to thank my fellow directors and management
for the numerous early starts and late finishes put in as we
negotiated and executed a deal across multiple time zones. We have
built a great team over the last year and a half and I am looking
forward to the development of Vatomaina and new projects that the
year ahead will bring.
Brett Boynton
CEO and Interim Chairman
Unaudited Group Income Statement
For the 6 months ended 30 June 2016
6 months 6 months 12 months
to to to
30 Jun 30 Jun 31 Dec
2016 2015 2015
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
------------------------------- ---------- ---------- ----------
Continuing operations
Revenue - - -
Cost of sales - - -
------------------------------- ---------- ---------- ----------
Gross margin - - -
Administrative expenses (328) (447) (664)
Other operating income 114 - -
Other operating expenses (33) (105) (195)
Operating loss (247) (552) (859)
Finance costs - (9) (9)
Loss on disposal of - (684) -
investments
Loss before taxation (247) (1,245) (868)
Taxation expense - - -
Loss for the period
from continuing operations (247) (1,245) (868)
Loss for the period
from discontinued operations (500) (464) (1,317)
Loss for the period (747) (1,709) (2,185)
------------------------------- ---------- ---------- ----------
Attributable to:
Owners of the Company (716) (1,709) (2,185)
Non-controlling interests (31) - -
------------------------------- ---------- ---------- ----------
(747) (1,709) (2,185)
------------------------------- ---------- ---------- ----------
Pence Pence Pence
------------------------------- ---------- ---------- ----------
Loss per share:
Basic and diluted (pence
per share):
From continuing operations (0.16p) (0.96p) (0.55p)
From continuing and
discontinued operations (0.47p) (1.32p) (1.56p)
------------------------------- ---------- ---------- ----------
Unaudited Group Statement of Comprehensive Income
For the 6 months ended 30 June 2016
6 months 6 months 12 months
to to to
30 Jun 30 Jun 31 Dec
2016 2015 2015
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
----------------------------------- --------- --------- ---------
Loss for the period (747) (1,709) (2,185)
Other comprehensive expense:
Exchange differences on
translation of foreign operations (158) (34) (226)
Market value adjustment
to investments - - (1)
Other comprehensive expense
for the period (158) (34) (227)
Total comprehensive expense
for the period attributable
to equity holders of the
parent (905) (1,743) (2,412)
Unaudited Group Statement of Financial Position
As at 30 June 2016
30 Jun 30 Jun 31 Dec
2016 2015 2015
Notes Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
----------------------------- ------ ---------- ---------- ---------
NON-CURRENT ASSETS
Goodwill - - -
Property, plant and
equipment - 2 2
Available for sale
investments - 6 1
- 8 3
----------------------------- ------ ---------- ---------- ---------
CURRENT ASSETS
Assets of the disposal
group classified as
held for sale 6,484 6,797 6,543
Trade and other receivables 183 62 124
Cash and cash equivalents 5 7 156
----------------------------- ------ ---------- ---------- ---------
6,672 6,866 6,823
----------------------------- ------ ---------- ---------- ---------
CURRENT LIABILITIES
Liabilities of the
disposal group classified
as held for sale 591 303 495
Trade and other payables 727 470 616
Short term borrowings 313 112 87
----------------------------- ------ ---------- ---------- ---------
1,631 885 1,198
----------------------------- ------ ---------- ---------- ---------
NET ASSETS 5,041 5,989 5,628
----------------------------- ------ ---------- ---------- ---------
EQUITY
Share capital 6 6,047 5,301 6,046
Share premium 32,102 31,823 31,818
Investment reserve - (32) (33)
Merger reserve 23,460 23,460 23,460
Reverse acquisition
reserve (48,478) (48,478) (48,478)
Other reserves (24) 350 134
Retained earnings (8,222) (6,435) (7,506)
----------------------------- ------ ---------- ---------- ---------
Equity attributable
to owners of the Company 4,885 5,989 5,441
Non-controlling interests 156 - 187
----------------------------- ------ ---------- ---------- ---------
TOTAL EQUITY 5,041 5,989 5,628
----------------------------- ------ ---------- ---------- ---------
Unaudited Group Statement of Cash flows
6 months to 30 June 2016
30 Jun 30 Jun 31 Dec
2016 2015 2015
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
--------------------------------- ---------- ---------- --------
OPERATING ACTIVITIES
Loss for the period from
continuing operations (247) (535) (868)
Loss for the period from
discontinued operations (500) (1,173) (1,317)
Adjusted for:
Finance expense - 9 9
Depreciation 11 65 135
Share based payment charge - 33 67
Shares issued in settlement
of fees - 189 189
Loss on disposal of property,
plant and equipment - 35 54
Loss on disposal of investments 33 - -
Operating cash flows before
movements in working capital (703) (1,377) (1,731)
Increase in inventory 121 12 (142)
(Increase)/Decrease in
trade and other receivables (114) 50 63
Increase/(Decrease) in
trade and other payables 49 322 493
Net cash used in operations (647) (993) (1,317)
Tax paid - - -
Net cash used in operating
activities (647) (993) (1,317)
--------------------------------- ---------- ---------- --------
INVESTING ACTIVITIES
Purchase of property,
plant and equipment - (70) (145)
Disposal of investments 1 504 504
Net cash from/(used in)
investing activities 1 434 359
--------------------------------- ---------- ---------- --------
FINANCING ACTIVITIES
Net proceeds from share
issues 285 659 1,399
Repayment of short term
borrowings 226 (139) (139)
Interest paid - (9) (9)
Net cash from/(used in)
financing activities 511 511 1,251
Net (decrease)/increase
in cash and cash equivalents (135) (48) 293
Cash and cash equivalents
of the disposal group (18) - (2)
Cash and cash equivalents
at beginning of year 158 91 91
Effect of foreign exchange
rate changes - - (226)
Cash and cash equivalents
at end of year 5 43 156
--------------------------------- ---------- ---------- --------
Notes to the interim statement
For the 6 months ended 30 June 2016
1. General information
StratMin Global Resources plc is a company incorporated in the
United Kingdom under the Companies Act 2006. The Company is
currently an AIM Rule 15 cash shell (as defined by the AIM Rules),
with an option to invest in graphite development projects.
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 2016 is unaudited and does 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 2015, 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 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 2015.
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 2016 were
approved by the board on 29 September 2016.
3. Loss per share
Loss per share is calculated by reference to the weighted
average of 158,929,613 ordinary shares in issue during the period
(31 December 2015 - 139,754,569 and 30 June 2015 -
129,684,841).
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 2016.
5. Share capital
30 Jun 30 Jun 31 Dec
2016 2015 2015
Issued and fully paid:
Ordinary shares of
GBP0.04 - 132,526,651 151,149,393
Ordinary shares of
GBP0.0001 163,149,393 - -
Deferred shares of
GBP0.0399 151,149,393 - -
GBP'000 GBP'000 GBP'000
Issued and fully paid:
Ordinary shares of
GBP0.04 - 5,301 6,046
Ordinary shares of
GBP0.0001 16 - -
Deferred shares of
GBP0.0399 6,031 - -
------------------------ ------------ ------------ ------------
6,047 5,301 6,046
------------------------ ------------ ------------ ------------
On 6 January 2016, the Company's shareholders approved a capital
reorganisation the effect of which was that each ordinary share of
4p was sub-divided into one new ordinary share of 0.01p and one
deferred share of 3.99p. The rights attaching to the deferred
shares are such that the deferred shares have no economic
value.
On 4 March 2016, the Company issued 12,000,000 new ordinary
shares of 0.01p each for cash at 2.5p per share, raising GBP300,000
before expenses in a private placing.
6. Post Balance Sheet Events
On 2 September 2016, the Company announced that it had been
issued with 75,000,000 shares in Bass Metals Ltd at a price of AUD
0.01 per share in settlement of the equity component due to the
Company as part of the consideration for the sale of Graphmada
Mauritius.
7. Distribution
The half yearly report for the six-month period ended 30 June
2016 will shortly be available on the Company's website
(www.stratminglobal.com) or directly from the Company at its
registered address.
-ends-
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR ZKLFLQKFZBBE
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