TIDMSTI
RNS Number : 9685M
Stratex International PLC
03 August 2017
Stratex International Plc
("Stratex", the "Company" or the "Group")
Interim Results
for the six-month period ended 30 June 2017
Stratex International Plc, the AIM-quoted gold exploration and
development company, announces its unaudited Interim Results for
the six-month period ended 30 June 2017 (the "Period").
Financial Highlights:
-- The Group's pre-tax profit for the 6 months to 30 June 2017
was GBP880,216, which compares to a loss in the same period for
2016 of GBP1,984,573;
-- The profit for the Period resulted from the successful sale
of the Group's 45% interest in the Altıntepe Gold Mine, which was
completed in April 2017 and raised a total of US$8m in cash, net of
all taxes and costs. A book gain of GBP2.9m was recorded in the
current period, with GBP1.6m profit included in FY2016 for services
rendered to Altıntepe;
-- The total Group cash balance at 30 June was GBP6.08m;
-- Stratex has reduced its representation on the Goldstone
Resources Limited ("Goldstone") board and Goldstone is now treated
in the financial statements as an associate company rather than
being fully consolidated. As at 30(th) June Stratex's holding in
Goldstone was 23.36%.
Operational Highlights:
-- Altıntepe:
o In April Stratex announced the sale of its 45% interest in
Altıntepe Madencilik Sanayi ve Ticaret AS, the holding company for
the Altıntepe Gold Mine. The Stratex Group has received an
aggregate amount of US$8m in cash, net of all taxes and costs, as
consideration for the sale (see announcement dated 24 April
2017);
-- Thani Stratex Resources Limited ("TSR"):
o Drilling programmes at the Anbat prospect ("Anbat") in Egypt
and the Pandora project in Djibouti both returned encouraging
intersections;
o TSR completed a US$1m placement, of which Stratex invested
$390,000. The funds were primarily raised for further drilling at
Anbat. Stratex's holding in TSR currently stands at 30.5%;
-- Goldstone Resources Limited ("Goldstone"):
o In Q1-2017 Goldstone reported encouraging exploration results
at their Homase-Akrokerri project in Ghana;
o In April this year, Goldstone entered into a convertible loan
agreement for US$0.4m to progress the Homase-Akrokerri project;
-- Crusader Resources Limited ("Crusader"):
o On 18 May 2017, Stratex announced the proposed acquisition of
Crusader in an all share transaction. In June, the Company
announced that it had entered into a scheme implementation deed
with Crusader through which it is proposed that Stratex will
acquire the entire issued share capital of Crusader, subject to,
inter alia, court, regulatory and shareholder approvals. Completion
of the deal would see Stratex acquire a number of assets in Brazil,
including two gold projects, Borborema and Juruena, which host a
combined JORC-compliant resource of 2.7 Moz in aggregate.
Marcus Engelbrecht, CEO of Stratex, said: "There has been
significant activity across the reporting period with the sale of
our Altıntepe investment in Turkey and the opportunity to acquire
two significant exploration and development assets as part of the
proposed Crusader Resources transaction. I expect further positive
news from our exploration portfolio and the potential to acquire
near development assets will bring us closer to realising our
strategy of building a gold producing Company."
Chairman's Statement:
The first six months of the year has been a period of
operational progress for the Company as we have refined our
strategy of becoming a significant gold producing company. We
continue to focus on developing our portfolio of exploration
projects and assets in Africa while seeking new acquisition
opportunities that complement this portfolio.
The Group has posted an encouraging pre-tax profit for the
period of GBP880,216 (2016 - loss GBP1,984,573). This has largely
resulted from the sale of our joint venture interest in Altıntepe
in April 2017 for US$8 million in cash. The sale is aligned with
our long-term strategy.
During the Period we continued our commitment to TSR and
increased our interest to 30.5% by subscribing for new shares as
part of a total share placement to raise funds for further drilling
at the Pandora epithermal gold project in Djibouti. As already
announced, the initial drilling results reported for Pandora are
exciting and confirm our confidence in the prospectivity of this
project.
Goldstone Resources Limited continues to report encouraging
exploration results at its Homase-Akrokerri project in Ghana, which
hosts an existing 602,000 oz gold JORC compliant resource. Since
30(th) June, the Company's interest has been diluted to 23.22% as a
result of a shares issue to the Goldstone directors in lieu of
salary.
In June 2017, the Company announced that it proposed to acquire
the entire issued share capital of Crusader Resources Limited.
Crusader is an Australian listed company with gold exploration
assets at Borborema and Juruena in Brazil hosting some 2.7 million
oz gold JORC compliant resources and with more than 12 years'
operating experience in Brazil. The transaction, which will be
effected by way of a Scheme of Arrangement under Australian Law,
will constitute a reverse takeover and will require Stratex
shareholder approval and the publication of an AIM Admission
Document. This acquisition will significantly increase the scale
and market capitalisation of the enlarged group and offers the
platform for management to implement its long-term strategy of
becoming a gold production and exploration company, whilst
presenting an opportunity to provide significant value to
shareholders.
The AIM Admission Document is expected to be published at the
beginning of September 2017 (following Court hearings in
Australia). The Admission Document will give full information
regarding the acquisition of Crusader. Subject to shareholder,
court and regulatory approvals, the acquisition is expected to
become effective and dealings in the enlarged share capital of
Stratex are expected to commence in October 2017. I look forward to
updating shareholders on this exciting phase of the Company's
development.
Peter Addison
Non-Executive Chairman
2nd August 2017
Statement of Consolidated Comprehensive
Income
Notes 6 months 6 months
to to
30 June 30 June
2017 2016
Unaudited Unaudited
GBP GBP
Continuing operations
Revenue - -
------------------------------------------------------- ---------------- --------------------
Cost of sales - -
======================================================= ================ ====================
Gross Profit - -
================================================= ==== ================ ====================
Administration expenses (1,488,300) (1,240,506)
================================================= ==== ================ ====================
Exchange gains/(losses) - net (414,740) 54,687
------------------------------------------------- ---- ---------------- --------------------
Operating loss (1,903,040) (1,185,819)
================================================= ==== ================ ====================
Finance income 3,996 9,768
================================================= ==== ================ ====================
Share of profits/(losses) of investments
accounted for using the equity method (33,702) 1,412,631
================================================= ==== ================ ====================
Loss on change of ownership status (70,390) -
================================================= ==== ================ ====================
Net losses on sale of associate companies - (2,221,153)
================================================= ==== ================ ====================
Profit on sale of Available-for-sale
financial assets 6 2,883,352 -
------------------------------------------------- ---- ---------------- --------------------
Profit/(Loss) before income tax 880,216 (1,984,573)
================================================= ==== ================ ====================
Income tax - -
------------------------------------------------- ---- ---------------- --------------------
Profit/(Loss) for the period 880,216 (1,984,573)
================================================= ==== ================ ====================
Other comprehensive income:
Items that may be reclassified subsequently
to profit or loss:
================================================= ==== ================ ====================
Share of comprehensive income of
investments accounted for using the
equity method - (246,457)
================================================= ==== ================ ====================
Exchange differences on translation
of foreign operations (367,640) 2,340,803
------------------------------------------------- ---- ---------------- --------------------
Other comprehensive income net of
tax (367,640) 2,094,346
------------------------------------------------- ---- ---------------- --------------------
Total comprehensive income for the
period 512,576 109,773
================================================= ==== ================ ====================
Profit/(Loss) for the period attributable
to:
================================================= ==== ================ ====================
Owners of the Parent Company 926,560 (1,875,835)
================================================= ==== ================ ====================
Non-controlling interest (46,344) (108,738)
------------------------------------------------- ---- ---------------- --------------------
Profit/(Loss) for the period 880,216 (1,984,573)
================================================= ==== ================ ====================
Total comprehensive income attributable
to:
================================================= ==== ================ ====================
Owners of the Parent Company 700,594 (9,686)
================================================= ==== ================ ====================
Non-controlling interest (188,018) 119,459
------------------------------------------------- ---- ---------------- --------------------
Total comprehensive income for the
period 512,576 109,773
================================================= ==== ================ ====================
Earnings per share - continuing operations:
================================================= ==== ================ ====================
Basic (pence) 8 0.20 (0.40)
================================================= ==== ================ ====================
Diluted (pence) 8 0.19 (0.40)
================================================= ==== ================ ====================
Statement of Consolidated
Financial Position
Notes 30 June 30 June 31 December
2017 2016 2016
Unaudited Unaudited Audited
GBP GBP GBP
ASSETS
=================================== ====== ============ ============ ============
Non-current assets
=================================== ====== ============ ============ ============
Property, plant and equipment 7,894 20,253 13,874
=================================== ====== ============ ============ ============
Intangible assets 4 6,418,676 9,679,159 10,490,725
=================================== ====== ============ ============ ============
Investments in equity-accounted
associates 5 6,688,683 6,965,034 5,757,578
=================================== ====== ============ ============ ============
Available-for-sale financial
assets 6 1,117,942 1,038,400 2,912,829
=================================== ====== ============ ============ ============
Trade and other receivables 1,388,618 1,120,413 1,358,639
=================================== ====== ============ ============ ============
Deferred tax asset 244,336 307,992 257,380
----------------------------------- ------ ------------ ------------
15,866,149 19,131,251 20,791,025
----------------------------------- ------ ------------ ------------ ------------
Current assets
=================================== ====== ============ ============ ============
Trade and other receivables 230,660 864,853 1,740,208
=================================== ====== ============ ============ ============
Cash and cash equivalents 6,084,884 2,728,190 1,688,619
----------------------------------- ------ ------------ ------------ ------------
6,315,544 3,593,043 3,428,827
=================================== ====== ============ ============ ------------
Total assets 22,181,693 22,724,294 24,219,852
=================================== ====== ============ ============ ------------
EQUITY
Capital and reserves attributable
to owners of the Company
=================================== ====== ============ ============ ============
Ordinary share capital 4,673,113 4,673,113 4,673,113
=================================== ====== ============ ============ ============
Share premium 20,426,431 20,426,431 20,426,431
=================================== ====== ============ ============ ============
Other reserves 2,389,694 1,592,512 2,588,762
=================================== ====== ============ ============ ============
Retained earnings (5,830,482) (6,527,206) (6,757,042)
----------------------------------- ------ ------------ ------------ ------------
Total equity attributable
to owners of the Company 21,658,756 20,164,850 20,931,264
=================================== ====== ============ ============ ============
Non-controlling interests 48,185 2,371,191 2,860,169
----------------------------------- ------ ------------ ------------ ------------
Total Equity 21,706,941 22,536,041 23,791,433
------------
LIABILITIES
Non-current liabilities
=================================== ====== ============ ============ ============
Employee termination benefits 38,054 31,170 35,710
=================================== ====== ============ ============ ============
Deferred tax liabilities - 308 2,691
----------------------------------- ------ ------------ ------------ ------------
38,054 31,478 38,401
----------------------------------- ------ ------------ ------------ ------------
Current liabilities
=================================== ====== ============ ============ ============
Trade and other payables 436,698 156,775 390,018
=================================== ====== ============ ============ ============
Total liabilities 474,752 188,253 428,419
----------------------------------- ------ ------------ ------------
Total equity and liabilities 22,181,693 22,724,294 24,219,852
=================================== ====== ============ ============ ------------
Statement of Consolidated Changes in Equity
Shares Non-controlling
Share Share Merger option Retained Translation Interest Total
Capital Premium Reserve reserve earnings reserve Total equity
GBP GBP GBP GBP GBP GBP GBP GBP GBP
As at 1 January 2017 4,673,113 20,426,431 (485,400) 590,297 (6,757,042) 2,483,865 20,931,264 2,860,170 23,791,434
------------------------------------------ --------- ---------- --------- --------- ----------- ----------- ----------- --------------- -----------
Share based payments - - - 26,898 - - 26,898 - 26,898
------------------------------------------ --------- ---------- --------- --------- ----------- ----------- ----------- --------------- -----------
Disposal of Non-controlling
interest - - - - - - - (2,623,967) (2,623,967)
------------------------------------------ --------- ---------- --------- --------- ----------- ----------- ----------- --------------- -----------
Comprehensive income
for the period:
------------------------------------------ --------- ---------- --------- --------- ----------- ----------- ----------- --------------- -----------
* Profit/(Loss) for the period - - - - 926,560 - 926,560 (46,344) 880,216
------------------------------------------ --------- ---------- --------- --------- ----------- ----------- ----------- --------------- -----------
* Other comprehensive income - - - - - (225,966) (225,966) (141,674) (367,640)
------------------------------------------ --------- ---------- --------- --------- ----------- ----------- ----------- --------------- -----------
Total comprehensive
income for the period - - - - 926,560 (225,966) 700,594 (188,018) 512,576
------------------------------------------ --------- ---------- --------- --------- ----------- ----------- ----------- --------------- -----------
As at 30 June 2017 4,673,113 20,426,431 (485,400) 617,195 (5,830,482) 2,257,899 21,658,756 48,185 21,706,941
========================================== ========= ========== ========= ========= =========== =========== =========== =============== ===========
As at 1 January 2016 4,673,113 20,426,431 (485,400) 709,299 (4,807,122) (349,613) 20,166,708 2,251,732 22,418,440
------------------------------------------ --------- ---------- --------- --------- ----------- ----------- ----------- --------------- -----------
Share based payments - - - 7,828 - - 7,828 - 7,828
------------------------------------------ --------- ---------- --------- --------- ----------- ----------- ----------- --------------- -----------
Share options cancelled - - - (155,751) 155,751 - - - -
------------------------------------------ --------- ---------- --------- --------- ----------- ----------- ----------- --------------- -----------
Total contributions
by and distributions
to owners of the Company - - - (147,923) 155,751 - 7,828 - 7,828
------------------------------------------ --------- ---------- --------- --------- ----------- ----------- ----------- --------------- -----------
Comprehensive income
for the period:
------------------------------------------ --------- ---------- --------- --------- ----------- ----------- ----------- --------------- -----------
* Loss for the period - - - - (1,875,835) - (1,875,835) (108,738) (1,984,573)
------------------------------------------ --------- ---------- --------- --------- ----------- ----------- ----------- --------------- -----------
* Other comprehensive income - - - - - 1,866,149 1,866,149 228,197 2,094,346
------------------------------------------ --------- ---------- --------- --------- ----------- ----------- ----------- --------------- -----------
Total comprehensive
income for the period - - - - (1,875,835) 1,866,149 (9,686) 119,459 109,773
------------------------------------------ --------- ---------- --------- --------- ----------- ----------- ----------- --------------- -----------
As at 30 June 2016 4,673,113 20,426,431 (485,400) 561,376 (6,527,206) 1,516,536 20,164,850 2,371,191 22,536,041
========================================== ========= ========== ========= ========= =========== =========== =========== =============== ===========
Statement of Consolidated
Cash Flows
6 months 6 months 12 months
to to to
30 June 30 June 31 December
2017 2016 2016
Unaudited Unaudited Audited
GBP GBP GBP
Cash flow from operating
activities
================================== ============ ============ ==============
Profit/(Loss) before income
tax 880,216 (1,984,573) (2,644,175)
=================================== ============ ============ ==============
Issue of share options 26,898 7,828 36,749
=================================== ============ ============ ==============
Depreciation 2,148 15,137 22,247
=================================== ============ ============ ==============
Share of losses/(profits)
of associates 375,356 (1,412,631) 162,261
=================================== ============ ============ ==============
(Profit)/Net loss on sale
of associates (2,535,644) 2,221,153 444,087
=================================== ============ ============ ==============
Impairment of intangible
assets - - 121,019
=================================== ============ ============ ==============
Fixed assets write-off - - 807
=================================== ============ ============ ==============
Increase in employee termination
benefit fund 4,147 836 9,101
=================================== ============ ============ ==============
Other income (interest
received) (3,996) (9,768) (16,185)
=================================== ============ ============ ==============
Foreign exchange movements
on operating activities (74,855) 351,974 672,088
=================================== ============ ============ ==============
Changes in working capital,
excluding the effects of
exchange differences on
consolidation:
================================== ============ ============ ==============
Trade and other receivables 1,582,057 235,941 (903,014)
=================================== ============ ============ ==============
Trade and other payables 44,127 (228,157) 5,086
----------------------------------- ------------ ------------ --------------
Net cash used in operating
activities 300,454 (802,260) (2,089,929)
----------------------------------- ------------ ------------ --------------
Cash flows from investing
activities
================================== ============ ============ ==============
Purchase of property, plant,
and equipment (2,044) (774) (2,436)
=================================== ============ ============ ==============
Purchase of intangible
assets (32,177) (396,032) (780,139)
=================================== ============ ============ ==============
Investment in related companies (301,438) (214,585) (214,585)
=================================== ============ ============ ==============
Interest received 3,996 9,768 16,185
----------------------------------- ------------ ------------ --------------
Net cash used in investing
activities (331,663) (601,623) (980,975)
----------------------------------- ------------ ------------ --------------
Cash flows from financing
activities
================================== ============ ============ ==============
Funds received from issue
of shares by subsidiary - - 627,450
=================================== ============ ============ ==============
Funds received from sale
of associate 4,427,474 - -
---------------------------------- ------------ ------------ --------------
Net cash generated from
financing activities 4,427,474 - 627,450
----------------------------------- ------------ ------------ --------------
Net decrease in cash and
cash equivalents 4,396,265 (1,403,883) (2,443,454)
=================================== ============ ============ ==============
Cash and cash equivalents
at beginning of the period 1,688,619 4,132,073 4,132,073
----------------------------------- ------------ ------------
Cash and cash equivalents
at end of the period 6,084,884 2,728,190 1,688,619
=================================== ============ ============ --------------
Notes to the unaudited financial statements
1. Basis of preparation
The condensed consolidated interim financial statements have
been prepared in accordance with International Accounting Standard
34 'Interim Financial Reporting'. The condensed consolidated
interim financial statements should be read in conjunction with the
annual financial statements for the year ended 31 December 2016,
which have been prepared in accordance with International Financial
Reporting Standards (IFRS) as adopted by the European Union.
2. Financial Information
The interim financial information set out above does not
constitute statutory accounts within the meaning of the Companies
Act 2006. It has been prepared on a going concern basis in
accordance with the recognition and measurement criteria of
International Financial Reporting Standards (IFRS) as adopted by
the European Union. Except as described below, the accounting
policies applied in preparing the interim financial information are
consistent with those that have been adopted in the Group's 2016
audited financial statements. Statutory financial statements for
the year ended 31 December 2016 were approved by the Board of
Directors on 15 May 2017 and delivered to the Registrar of
Companies. The report of the auditors on those financial statements
was unqualified.
Risks and uncertainties
The key risks that could affect the Group's short and medium
term performance and the factors that mitigate those risks have not
substantially changed from those set out in the Group's 2016 Annual
Report and Financial Statements, a copy of which is available on
the Company's website: www.stratexinternational.com. The Group's
key financial risks are the availability of adequate funding and
foreign exchange movements.
Accounting Policies
Critical accounting estimates and judgements:
The preparation of condensed consolidated interim financial
statements requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the end of the
reporting period. Significant items subject to such estimates are
set out in note 4 of the Group's 2016 Annual Report and Financial
Statements. The nature and amounts of such estimates have not
changed significantly during the interim period. The condensed
consolidated interim financial statements have been prepared under
the historical cost convention as modified by the measurement of
certain investments at fair value.
There have been no changes in accounting policy during the
period and no new and amended standards have been adopted by the
Group during the period.
The financial information for the 6 months ended 30 June 2017
and the 6 months ended 30 June 2016 has not been audited.
The business is not subject to seasonal variations. No dividends
have been paid in the period (2016: GBPnil).
3. Operating Segments
Operating segments are reported in a manner which is consistent
with internal reports provided to the Board and are used by the
Directors to make strategic decisions. The management structure
reflects these segments. The Group's exploration operations and
investments are based in three geographical areas, namely 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 allocation of profits, losses, assets and liabilities by
operating segment is as follows:
Loss/(Profit)
for the period:
Turkey East Africa West UK Total
Africa
6 months to 30
June 2017
=========================== ============ ============ ========= ========== ============
Administrative
costs 183,766 121,861 186,734 993,802 1,486,163
=========================== ============ ============ ========= ========== ============
Inter-segment
charges 116,007 - 334,788 (450,795) -
=========================== ============ ============ ========= ========== ============
Finance income - - (294) (3,702) (3,996)
=========================== ============ ============ ========= ========== ============
Depreciation 958 - 966 213 2,137
=========================== ============ ============ ========= ========== ============
Exchange losses 64,608 - 34,072 316,060 414,740
=========================== ============ ============ ========= ========== ============
Share of (profits)/losses
of associates - 24,042 9,660 - 33,702
=========================== ============ ============ ========= ========== ============
Net loss on disposal
of associates (2,883,352) (130,964) 201,354 - (2,812,962)
=========================== ============ ============ ========= ========== ============
(Profit)/Loss
before Income
Tax (2,518,013) 14,939 767,280 855,578 (880,216)
--------------------------- ------------ ------------ --------- ---------- ------------
6 months to 30
June 2016
=========================== ============ ============ ========= ========== ============
Administrative
costs 282,605 3,361 412,946 530,105 1,229,017
=========================== ============ ============ ========= ========== ============
Inter-segment
charges 89,213 - 334,036 (423,249) -
=========================== ============ ============ ========= ========== ============
Finance income - - (287) (9,481) (9,768)
=========================== ============ ============ ========= ========== ============
Depreciation 1,955 - 5,235 4,299 11,489
=========================== ============ ============ ========= ========== ============
Exchange losses (36,870) - (11,906) (5,911) (54,687)
=========================== ============ ============ ========= ========== ============
Share of (profits)/losses
of associates (1,636,081) 223,450 - - (1,412,631)
=========================== ============ ============ ========= ========== ============
Net loss on disposal
of associates 319,414 1,901,739 - - 2,221,153
=========================== ============ ============ ========= ========== ============
(Profit)/Loss
before Income
Tax (979,764) 2,128,550 740,024 95,763 1,984,573
--------------------------- ------------ ------------ --------- ---------- ------------
Assets and liabilities:
Turkey East Africa West UK Total
Africa
6 months to 30
June 2017
========================= ============ ============ ============= =========== ===========
Intangible assets - - 6,418,676 - 6,418,676
========================= ============ ============ ============= =========== ===========
Property, plant
and equipment 5,705 - 146 2,043 7,894
========================= ============ ============ ============= =========== ===========
Equity-accounted
associates - 5,736,826 951,857 - 6,688,683
========================= ============ ============ ============= =========== ===========
Cash and other
assets 994,991 406,869 1,471,387 6,193,193 9,066,440
========================= ============ ============ ============= =========== ===========
Liabilities (50,179) - (20,289) (404,284) (474,752)
========================= ============ ============ ============= =========== ===========
Inter-segment (1,133,860) - (10,495,600) 11,629,460 -
------------------------- ------------ ------------ ------------- ----------- -----------
Net Assets (183,343) 6,143,695 (1,673,823) 17,420,412 21,706,941
------------------------- ------------ ------------ ------------- ----------- -----------
6 months to 30
June 2016
========================= ============ ============ ============= =========== ===========
Intangible assets - - 9,679,159 - 9,679,159
========================= ============ ============ ============= =========== ===========
Property, plant
and equipment 9,903 - 9,029 1,321 20,253
========================= ============ ============ ============= =========== ===========
Equity-accounted
associates 1,757,304 5,207,730 - - 6,965,034
========================= ============ ============ ============= =========== ===========
Cash and other
assets 1,122,273 381,492 1,282,663 3,273,420 6,059,848
========================= ============ ============ ============= =========== ===========
Liabilities (79,516) - (39,025) (69,712) (188,253)
========================= ============ ============ ============= =========== ===========
Inter-segment (3,607,229) - (9,891,562) 13,498,791 -
------------------------- ------------ ------------ ------------- ----------- -----------
Net Assets (797,265) 5,589,222 1,040,264 16,703,820 22,536,041
------------------------- ------------ ------------ ------------- ----------- -----------
Cash and other assets include cash and cash equivalents
amounting to GBP6,084,884 at 30 June 2017, (2016:
GBP2,728,190).
4. Intangible assets
2017 2016
At 1 January 10,490,725 8,323,340
Exchange movements (64,157) 959,787
Disposal due to change
in ownership status (4,040,067) -
Additions 32,175 396,032
At 30 June 6,418,676 9.679,159
------------------------ ----------- ---------
On 2 June 2017, Goldstone Resources Limited ceased to be
accounted for as controlled subsidiary (see note 5) and the
Goldstone Homase-Akrokerri project was removed as an intangible
asset from the balance sheet, and replaced as an equity accounted
associate.
5. Investments in equity-accounted associates
2017 2016
At 1 January 5,757,578 7,645,184
Exchange movements (313,077) 750,483
Share of (losses)/profits (33,702) 1,412,630
Addition due to change in ownership
status 1,318,885 -
Additions 301,438 189,208
Disposals (671,126) (3,726,261)
Share of new capital 328,687 693,790
===================================== ========= ===========
At 30 June 6,688,683 6,965,034
------------------------------------- --------- -----------
a) On 2 June 2017, Goldstone Resources Limited ceased to be
accounted for as controlled subsidiary as a result of the reduction
in the Stratex representation on the Board of Directors. Goldstone
Resources Limited was recategorised as an equity-accounted
associate with a carrying value of GBP1,318,885.
b) During the Period, Stratex's shareholding interest in
Goldstone Resources Limited was reduced to
23.36% as at 30 June 2017, resulting in a net loss through the
consolidated statement of comprehensive income of GBP351,542.
c) Stratex's shareholding interest in Thani Stratex Resources
Limited reduced during the period to 29.5%. The Company
subsequently injected a further GBP301,438 into share capital
increasing its interest to 30.5% shareholding interest. These
transactions resulted in a net gain through the consolidated
statement of comprehensive income of GBP9,103.
6. Available-for-sale financial assets
The sale of the Group's 45% interest in Altıntepe was completed
in April 2017 for US$8 million in cash, net of any taxes and costs.
A book gain of GBP2,883,352 has been recorded in the current period
following recording a GBP1.6m profit in the 2016 annual results for
services rendered to Altıntepe.
7. Related party transactions
Directors of the Company received total remuneration of
GBP364,004 for the six months ended 30 June 2017 (six months ended
30 June 2016 - GBP242,046).
8. Earnings per share
The calculation of earnings per share is based on the
following:
2017 2016
---------------------------- --------------- -------------
Profit/(loss) attributable
to equity holders (GBP) 926,560 (1,875,835)
Weighted average number
of shares basic 467,311,276 467,311,276
Earnings per share basic
(pence) 0.20 (0.4)
Weighted average number
of shares diluted 497,316,420 487,589,420
Earnings per share diluted
(pence) 0.19 (0.4)
As the Group incurred a loss for the period to 30 June 2016, no
options or warrants are potentially dilutive in accordance with IAS
33 and hence basic and diluted earnings per share are the same.
9. Approval of interim financial statements
The interim financial statements were approved by the Board of
Directors on 2 August 2017.
The information contained within this announcement is deemed by
Stratex to constitute inside information as stipulated under the
Market Abuse Regulations (EU) No. 596/2014.
** ENDS **
For further information please visit
www.stratexinternational.com, @StratexPLC on Twitter, email
info@stratexplc.com, or contact:
Stratex International Plc Tel: +44 (0)20 7830 9650
Marcus Engelbrecht / Claire Bay
Grant Thornton UK LLP Tel: +44 (0)20 7383 5100
Philip Secrett / Samantha Harrison / Daniel Bush
Hannam & Partners Tel: +44 (0)20 7907 8500
Neil Passmore/ Andrew Chubb
Camarco Tel: +44 (0)20 3757 4980
Gordon Poole / Nick Hennis
Notes to Editors:
Since listing in 2006, Stratex has discovered more than 2.2
million ounces of gold and 7.09 million ounces of silver, as well
as 186,000 tonnes of copper. The Company owns 15% of a copper-gold
project at feasibility stage and an exciting exploration project in
Senegal. The Company also has significant interests in Goldstone
Resources Ltd, Thani Stratex Resources Ltd and Tembo Gold Corp. for
their exploration projects in Ghana, Djibouti and Egypt, and
Tanzania respectively.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR PJMMTMBMMMRR
(END) Dow Jones Newswires
August 03, 2017 02:01 ET (06:01 GMT)
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