TIDMSVE
RNS Number : 0040S
Starvest PLC
01 November 2013
Friday 1 November 2013
Results for the year ended 30 September 2013
Chairman's statement
I am pleased to present my twelfth annual statement to
Shareholders for the year ended 30 September 2013.
Results for the year
We have experienced another tough year during which investment
values have again declined. However, values have risen from the low
point in July this year and I now see some reason for mild optimism
for the future.
The loss before taxation has decreased slightly from GBP1.03m to
GBP1.01m. In addition;
-- we have no debt, but a bank overdraft facility only;
-- we continue to believe that we are in a strong position to
benefit from an upturn in markets which must surely come!
-- the fundamentals have not changed: the world is becoming more
affluent with an increasing number of people expecting
refrigerators, motor cars, air conditioning, laptop computers and
all other tools of 21(st) Century living.
Trading portfolio valuation
A detailed review of the portfolio companies follows. Our
commentary focuses on the nine companies that constitute our core
portfolio but does not exclude others which may well rebound.
Admission of AIM stocks to ISAs
With effect from 6 April 2013, HM Government has permitted UK
taxpayers to include AIM stocks in their tax free Individual
Savings Accounts ("ISAs"). We suggest that this may be attractive
to you as an investor in Starvest and other undervalued AIM stocks
and that, if you have not already done so, you may wish to discuss
the matter with your stockbroker and/or tax accountant.
Investment policy
The Company's investing policy is reproduced later in this
report and made available on the website, www.starvest.co.uk.
Shareholder information
The Company's shares are traded on AIM.
Announcements made to the London Stock Exchange are sent to
those who register at the Company website, www.starvest.co.uk where
historic reports and announcements are also available.
Annual general meeting
We will hold our annual general meeting at 3.00 pm on Wednesday
18 December 2013 at the City office of Grant Thornton UK LLP, our
Nominated Adviser, when we look forward to meeting those
Shareholders able to attend.
R Bruce Rowan
Chairman & Chief Executive
31 October 2013
Investing policy statement
About us
The Board has managed the Company as an investment company since
January 2002.
Collectively, the Board has a wealth of experience over many
years of investing in small company new issues and pre-IPO
opportunities in the natural resources and mineral exploration
sectors.
Company objective
The Company is established as a source of early stage finance to
fledgling businesses, to maximise the capital value of the Company
and to generate benefits for Shareholders in the form of capital
growth and modest dividends.
Investing strategy
Whilst the Company has no exclusive commitment to the natural
resources sector, the Board sees this as having considerable growth
potential for the foreseeable future. Historically, investments
were generally made immediately prior to an initial public
offering, on AIM or ISDX, formerly PLUS markets, and in the
aftermarket. As the nature of the market has changed since 2008, it
is more likely that the future investment portfolio will include a
spread of companies that generally have moved beyond the IPO stage
but remain in the early stages of identifying a commercial resource
and/or moving towards development with the appropriate finance.
Initial investments are for varying amounts but usually in the
range of GBP100,000 - GBP300,000. These companies are invariably
not generating cash, rather they have a constant requirement to
raise new equity in order to continue exploration and development.
Therefore after appropriate due diligence, the Company may provide
further funding support and make later market purchases so that the
total investment may be greater than GBP300,000.
The business is inherently high risk and of a cyclical nature
dependent upon fluctuations in world economic activity which
impacts on the demand for minerals. However, it offers the investor
a spread of investments in an exciting sector which the Board
believes will continue to offer the potential of significant
returns for the foreseeable future.
The investee companies, being small, almost invariably lack
share market liquidity, even if they are quoted on AIM, ISDX, ASX,
TSX or TSX-V. Therefore, in the early years it is rarely possible
to sell an investment at the quoted market price with the result
that extreme patience is required whilst the investee company
develops and ultimately attracts market interest. If and when an
explorer finds a large exploitable resource, it may become the
object of a third party bid, or otherwise become a much larger
entity; either way an opportunity to realise cash is expected to
follow.
Of the 25 to 30 investments held at any one time, it is expected
that no more than five will prove to be 'winners'; from half of the
remainder we may expect to see modest share price improvements.
Overall, the expectation is that in time Shareholder returns will
be acceptable if not substantial.
Accordingly, the Board is unable to give any estimate of the
quantum or timing of returns. That stated, when profits have been
realised and adequate cash is available, it is the intention of the
Board to recommend the distribution of up to half the profits
realised.
The Company currently has investments in the following companies
which themselves are investment companies: Equity Investors plc;
Equity Resources plc, Guild Acquisitions plc; and International
Mining & Infrastructure Corporation plc.
The Company takes no part in the active management of investee
companies, although directors of the Company are also non-executive
directors on the boards of seven such companies, with one director
being the executive chairman of an eighth.
Strategic report - review of trading portfolio
Introduction
During the year to 30 September 2013, the portfolio comprised
interests in the companies commented on below.
The tough trading and fundraising conditions of the past three
years have taken a toll on some of the businesses in which Starvest
is invested to such an extent that as at 30 September 2013:
-- nine portfolio companies accounted for the greater part of the portfolio by value.
-- the remainder include both mineral exploration ventures as
well as other businesses all of which are valued below cost.
Transactions
During the year there were no sales.
Additional investments were made in Goldcrest Resources plc,
formerly Rare Earths and Metals plc; in addition, loan stock in
Guild Acquisitions plc was exchanged for equity and GBP10,000 in
cash.
Trading portfolio valuation
When reporting in previous years, attention was drawn to the
continuing adverse conditions in our chosen market for early stage
mineral exploration stocks. The year to September 2013 has been
difficult with a continuing steady decline in market prices until
July since when we have seen modest increases.
Against this background, we continue to value our portfolio
investments conservatively at the lower of cost or bid price or
lower directors' valuation where we believe those facts of which we
are aware cast doubt on the market prices or where the Company's
interest is of such a size as to inhibit selling into a depressed
market. We attribute no value to those of our investments that do
not enjoy a market quote but we hope for future benefits amongst
these investments.
This cautious approach has proved to be appropriate in these
difficult times; these discounts total GBP196,000 (2012:
GBP354,000).
A detailed review of the portfolio companies follows. Whilst the
portfolio contains investments in companies that have made real
progress during the year, there are many, particularly smaller
companies, that have struggled for one or more reasons. Raising new
finance, which is essential to progress in any mineral exploration
business, has proved to be very tough; no fewer than five of our
investee companies have effectively fallen this year.
Our commentary focuses on the nine companies that constitute our
core portfolio but also includes others which may well rebound; we
remain resolved to allow our investments time to mature; most
certainly this proved to be appropriate with the companies for
which a takeover offer was received in previous years and when we
generated substantial profits and paid dividends
The key performance indicators are set out below:
Company statistics
30 September 30 September Change
2013 2012 %
at BID at BID
values values
as adjusted as adjusted
* Trading portfolio value GBP2.52m GBP3.51m -28%
* Company asset value net of debt GBP2.73m GBP3.66m -25%
* Net asset value per share 7.44p 9.86p -25%
* Closing share price 5.62p 6.5p -13%
* Share price discount to net asset value 24% 34%
* Market capitalisation GBP2.09m GBP2.41m -13%
These values include unrealised gains on elements of the trading
portfolio that are not reflected in the financial statements.
Since the year end, values have fluctuated; as at the close of
business on 25 October 2013, the net asset value was GBP2.65m.
Review of the current market
We and our investee companies have endured another tough year;
the former long term view and momentum in the market has evaporated
to be replaced by extreme short termism leading to lower prices and
or volatility. It is clear that many private investors who had been
so supportive in earlier years have taken fright, or at best are
sitting on their hands awaiting a recognisable upturn in world-wide
economic fortunes; this is compounded in that few institutional
investors have an appetite for small early stage projects.
In times like these we repeatedly note two downward drivers of
price:
-- a company makes an announcement, thus drawing attention to
itself; irrespective of substance, this is followed by a price
fall; and
-- having committed itself to a cash hungry project in the good
times, so as to maintain the momentum towards an eventual sale or
development, the company has no option but to raise new equity at
ever lower prices.
World markets have been volatile. For instance, the gold price
has been as high as $1,795 per oz but has also been as low as
$1,192 in the past two years; at the present time it is
approximately $1,300. Only those with a sound business plan and
cost control with access to the necessary finance will succeed in
such volatile markets.
Then there is iron ore which is in plentiful supply but with
Australia the dominant exporter. Spot iron ore prices are currently
in the region of $130/t, but have seen major movements with $80
threatened not long ago.
However, demand for raw materials continues to grow so it must
only be a matter of time before prices begin to recover. Meanwhile,
the opportunities for junior explorers to realise value and
generate cash are few.
Of our core holdings, four are focused on gold, the price of
which is volatile in these uncertain times. Another two have a
strong focus on iron ore, the demand for which continues to
increase as the economies of China and the third world expand;
another two are developing new sources of other basic commodities
essential if the standard of living of the populations in
developing countries is to improve as we wish and expect. The ninth
and latest is searching for oil.
Patience is the key as we await a recovery.
Ariana Resources plc - AIM ticker: AAU
Sector: Gold exploration in Turkey
Background information:
-- Ariana has a JORC resource of 1.5 million oz equivalent of
gold, over a third of which relates to the Kiziltepe sector of its
flagship Red Rabbit project.
What they are doing:
-- With earn-in contributions from Turkish construction company
Proccea towards its eventual 50% stake on production start-up,
Ariana's interest has been reduced to 82%.
-- Mine construction is expected to start in late 2013.
-- Initial production is expected by late 2014 at an annual rate of 21,000 ounces.
-- An 8 year mine life is forecast, with adjacent assets adding
further potential to the project.
Future plans:
-- Ariana has recently announced ten new drill-ready targets at
Kiziltepe and a further 300 scouting targets.
-- Ariana has a 49% interest in a JV with Canadian Eldorado
Gold, which is funding an exploration campaign on the Salinbas and
Ardala projects in the north-eastern Artvin Province, with a maiden
JORC resource of 1.09 million oz gold inferred and indicated.
-- Ariana also has an 11.5% interest in Tigris Resources with
exploration interests in the south-east.
Comment: Despite the vagaries in the gold price, Ariana offers
interesting potential once planned cash flow materialises from its
Kiziltepe operations thus enabling it to pursue its wider
interests.
Further information is available on the Ariana website:
www.arianaresources.com
Beowulf Mining plc - AIM ticker: BEM
Sector: Iron ore, copper and gold in Northern Sweden
Background information:
-- Beowulf is dual listed on Stockholm's AktieTorget market.
-- Sweden has a long-established mining history and record of
political, economic and social stability.
-- Recent non-violent attempts to disrupt Kallak drilling
operations by limited numbers of protesting activists, and
separately by local Sami reindeer herders, have caused minor delays
to drilling and testing operations which are being overcome.
Positive support from landowners, local authorities and central
government has led to Kallak being designated as an area of
national interest, effectively giving it national credibility,
protection, and assistance in the company's project plans.
-- Beowulf enjoys a 100% interest in all of its projects except
for the Ballek copper-gold project owned 50/50 in JV form with an
Australian partner, Energy Ventures Ltd.
What they are doing:
Beowulf has projects in Sweden, in particular:
-- a 144 mt iron ore JORC resource at Kallak North;
-- a potentially larger and contiguous deposit at Kallak South,
for which an extensive exploratory drilling campaign is
planned;
-- adequate cash funding in hand;
-- some early stage projects and others where considerable work has been undertaken.
Future plans:
-- Initial demand for iron ore production exists within Europe alone.
-- Access to the market will be well served by Sweden's
established infrastructure - being upgraded to accommodate the
enhanced industry production levels.
Comment: Beowulf would appear to offer investors a low risk
opportunity. Further information is available on the Beowulf
website: www.beowulfmining.com
Greatland Gold plc - AIM ticker: GGP
Sector: Gold exploration in Tasmania and Western Australia
Background information: Greatland has been conducting early
stage exploration for gold since 2006 having been admitted to AIM
that year. Having made progress on two properties, Warrentinna and
Lisle, Greatland has entered into farm-in agreements with larger
entities which will earn an increasing percentage share of the
projects in exchange for expenditure incurred.
What they are doing: Significant recent developments have
included:
-- very positive results at the Warrentinna project in Tasmania;
-- work on the Firetower project, the subject of a farm-in
agreement with Unity Mining, continues apace;
-- significant surface geochemical results at Lisle peaking at 2.5g/t gold;
-- farm-in agreement signed with Tamar Gold at the Lisle gold project;
-- identified large gold anomalies at Lackman Rock with
encouraging results from soil sampling;
-- identified gold and nickel targets at Bromus; and
-- exceptional geochemical results from Ernest Giles.
Future plans:
-- to press on with early stage exploration at their various
properties for which purpose Greatland has recently raised
GBP675,000 before costs from a share placing.
Further information is available on the Greatland website:
www.greatlandgold.com
KEFI Minerals plc - AIM ticker: KEFI
Sector: Gold exploration in Saudi Arabia
Background information: KEFI has switched its focus from Turkey
to Saudi Arabia where it has a 40% interest with a local
construction company, ARTAR, in a JV partnership which has enabled
KEFI to gain accelerated attention from the notoriously slow Saudi
licensing authorities in granting exploration licences.
What they are doing:
-- Early drilling of the Jibal Qutman licence resulted in 2000
assays establishing a compliant JORC resource of 313,000 ounces
gold, with more expected as a result of further work already
undertaken and the addition of a third drill rig.
Future plans:
-- With an updated resource assessment likely by year-end, and
the benefit of cheap labour and low fuel costs, it is
understandable that the shares have been receiving market attention
in the belief that KEFI could be applying for a production licence
in early 2014.
-- With ARTAR paying its 60% share, the mine development cost
requirement should be relatively modest, and KEFI's likely need to
seek limited further funding from its shareholders by the year-end
should be successfully achieved.
Further information is available on the KEFI website:
www.kefi-minerals.com
Nordic Energy plc - ISDX ticker: NORP
Sector: Oil and gas in the North Sea
Background information: Nordic was formed in 2012 and admitted
to trading on ISDX in November; Starvest contributed core funding
for an initial 42% stake.
What they are doing:
Nordic is focussed on oil and gas opportunities in Denmark,
Norway, and the North Sea sectors of the Netherlands and the
UK.
-- Nordic holds Licence 1/13, the largest exploration and
production licence in the Danish North Sea, covering an area of
3,600 sq. km; the Licence is located approximately 50 km from the
edge of the Central Graben, where existing production and multiple
discoveries are located, and 100 km from the Siri Area which has a
number of tertiary fields.
Future plans:
-- A programme of assessment leading to a CPR is planned for Q4
2013 followed by drilling within 24-36 months thereafter.
Comment: The Directors of the Company all have significant
experience in the oil and gas sector, specifically in the Nordic
region and believe that significant opportunities exist and that
their expertise and extensive contacts will assist them in the
identification, evaluation and funding of appropriate investment
opportunities.
Further information is available on the Nordic website:
www.nordicenergyplc.com
Oracle Coalfields plc - AIM ticker: ORCP
Sector: Coal in Pakistan
Background information: Oracle Coalfields is the first developer
of the Thar lignite coal field in the Sindh province in south-east
Pakistan; it came to AIM in April 2011.
What they are doing:
Oracle has:
-- a JORC resource of 529mt;
-- a first phase proven coal reserve of 113 mt, and has
-- moved from exploration into development;
-- a 30 year production licence extendable on expiry for a
further 30 years, producing initially an annual 2.4 mt a year;
-- joint development agreements signed for a mine-mouth power plant; and
-- agreements with major Chinese state-owned entrepreneur CAMC
Engineering (CAMCE), for the funding and development of the mine
and adjacent power plant.
Future plans:
The future plans are:
-- to supply a 300MW power plant and local industry such as the cement sector;
-- to raise initial mine capital costs estimated at US$176million;
-- CAMCE will assist Oracle in securing the requisite funding
for two thirds of the construction costs likely to be obtained from
Chinese banks with related capital expenditure underwritten by the
SINOSURE export credit agency; and
-- initial mine production expected within two years and later
capable of expansion to an annual level of 5 to 6 mt raising supply
to an eventual 1100MW plant.
Comment: Oracle enjoys first-mover advantage and local status as
it seeks to alleviate Pakistan's shortage of electricity which is
seriously constraining the development of the national economy as
well as being a cause of growing civilian unrest. Oracle enjoys the
support of government and is one to watch. Oracle has achieved all
its pledged objectives and commitments, yet in common with many
others, it has seen its share price fall since AIM admission
Further information is available on the Oracle website:
www.oraclecoalfields.com
Regency Mines plc - AIM ticker: RGM
Sector: Varied interests in mineral exploration ventures
Background information: Regency came to AIM in 2005 with a
portfolio of exploration properties in Australia since when it
transferred some to Red Rock Resources plc, see below, and
continued to deal with others as well as take stakes in other
mineral exploration ventures.
What they are doing:
Regency has:
-- exploration assets in Western Australia prospective for base metals and gold;
-- 19.9% interest in ASX quoted Ram Resources Limited, the
holder of licences in the Fraser Range, WA prospective for gold and
nickel-copper-cobalt, adjacent to those held by Sirius Resources
(ASX);
-- with the support of the Sudanese government, a 51% interest
in IMRAS exploring for agro-minerals in Sudan;
-- 50% of Oro Nickel Vanuatu, which itself holds the Mambare
property in Papua New Guinea with a JORC resource of 162.6 mt
nickel grading 0.94% with 1.53 mt of contained nickel plus cobalt,
from 3% only of the tenement; there is also potential for base
metals, gold and geothermal resources;
-- a 6% interest in Direct Nickel Limited which is in the later
stages of proving a game-changing nickel treatment technology;
and
-- other investment interests in Alba Mineral Resources plc, see
below, and Greatland Gold plc, see above.
Future plans:
More of the same: conduct early stage exploration; prove a
resource; dispose of it to a third party in exchange for a minority
stake, and/or a carried interest. Immediate plans are to continue
early stage exploration in Sudan.
Comment: The significance of the Mambare project with the
associated technological breakthrough by Direct Nickel should not
be overlooked.
Further information is available on the Regency website:
www.regency-mines.com
Red Rock Resources plc - AIM ticker: RRR
Sector: Gold and iron ore
Background information: Red Rock was launched on to AIM in
mid-July 2005 by Regency Mines, see above, with a portfolio of
exploration licences of properties in Western Australia.
What they are doing:
Red Rock is an early stage exploration company with a diverse
range of projectsin Colombia, Greenland and Kenya as well as
interests in Australia including:
-- a 50% interest in a producing gold mine in Colombia;
-- a direct interest of 15% in tenements in Kenya prospective
for gold, with the prospect of a further 45% on completion of a
bankable feasibility study, plus a 33% interest in the holder of
the remaining interest; a JORC estimate shows a 1.193m oz
resource.
-- a 60% interest in an iron ore project in Greenland with a
JORC resource; an offer for a partial sale has been received;
-- an interest in ASX quoted Jupiter Mines Limited which has a
33% interest in a major South African manganese producer as well as
other assets in Western Australia;
-- a 38% interest in ASX quoted Resource Star Limited which
recently announced an intention to acquire a number of Texan oil
wells; and
-- an interest in Regency Mines plc, see above, Alba Mineral
Resources plc, see below, and Ascot Mining plc.
Future plans:
Rather like Regency Mines, we suspect more of the same.
Further information is available on the Red Rock website:
www.rrrplc.com
Sunrise Resources plc - AIM ticker: SRES
Sector: Diversified mineral exploration and development
specialist
Background information: Sunrise was admitted to AIM in 2005
initially with a portfolio of diamond exploration assets from
Tertiary Minerals plc. Tertiary remains a major shareholder.
What they are doing: Exploring for:
-- diamonds through its wholly-owned Western Australia Cue
Diamond project, where samples of a discovered kimberlite float
have been sufficiently encouraging to suggest that evaluation of
its economic potential through bulk sampling is warranted with
further exploration work planned to locate the bedrock source;
-- gold in Australia, where work on the Baker's and the Corona
gold exploration projects has been deferred;
-- barites in Ireland where Sunrise is evaluating a production
opportunity for its high-white Derryginach barite resource against
a background of increasing prices and with no major mine supplier
outside of China.
Future plans:
With access to new capital restricted, Sunrise has taken a
cautious approach to discretionary expenditure on its mineral
projects in order to conserve cash until replacement equity can be
raised on more favourable terms. It has relinquished its option
over a Canadian gold project and suspended its diamond exploration
work in Finland.
Further information is available on the Sunrise website:
www.sunriseresourcesplc.com
The above companies constitute Starvest's core portfolio as at
30 September 2013.
In addition, the Company holds interests in the following which
are believed to be worth watching for future developments:
Alba Mineral Resources plc - AIM ticker: ALBA
Alba is a UK-based exploration company with an overall strategy
to develop a portfolio of well-researched, promising and
prospective exploration interests; currently, these are:
-- uranium in Mauretania;
-- gold, nickel and base metals in western Ireland; work on its
JV agreement with Teck Resources has been financed by Teck towards
its ultimate 75% interest by mid-2015.
But with limited financial resources, Alba's activities have
been concentrated on securing additional funding, much of which was
achieved by the issue of new shares to satisfy debts due to its
directors and to its Mauretanian JV partner.
Further information is available on the Alba website:
www.albamineralresources.com
Centamin plc - LSE ticker: CEY
Sector: Gold mining in Egypt
Background information:
The interest was acquired in 2011 in part consideration for a
holding in Sheba Exploration, an Ethiopian gold exploration venture
at a time when Centamin wished to build a portfolio of interests
outside Egypt where it holds and is significantly dependent on its
investment in the Sukari gold mine.
What they are doing:
Last year saw the start of civilian unrest and changes in
government, along with labour problems at the mine, a fall in
production levels and a legal dispute with a junior administrative
court that was contesting Centamin's mining licence. This led to a
serious threat that the Egyptian Government's stake in the mine
should be raised from 50% to 75% or the mining licence annulled or
suspended. The inevitable consequence was a sharp decline in the
share price, although more recently the price has enjoyed a minor
recovery to reach a level of almost one half of the value obtained
at the time of the Sheba take-over.
Whilst tensions in Egypt remain, Centamin has continued to
deliver positive results, most recently announcing a third quarter
when 84,757 ounces of gold were produced, bringing the total for
the year to date to 265,397 ounces and close to the annual target
of 320,000 ounces.
The interest in Centamin has been sold since the end of the
financial period under review.
Further information is available on the Centamin website:
www.centamin.com
Goldcrest Resources plc: - ISDX ticker: GCRP
Goldcrest:
-- is under new management and is now focused on exploring for gold in north-east Ghana;
-- has raised further funds and strengthened its Board,
-- as it prepares to seek admission to AIM in 2013; and
-- has changed its name twice in the past three years from Lisungwe to Rare Earths and Metals.
Further information is available on the Goldcrest website:
www.goldcrestresourcesplc.com
Guild Acquisitions plc - ISDX ticker: GACQ
Guild has a mixture of assets including stakes in Starvest
investee companies Goldcrest Resources plc and Equity Resources
plc. Guild does not maintain a website.
International Mining & Infrastructure Corporation plc- AIM
ticker: IMIC
-- IMIC is focused on infrastructure solutions for West African iron ore development projects;
-- Subject to final approvals, IMIC has successfully bid GBP120
million for Afferro Mining with its Nkout project in Cameroun;
although this acquisition represents a significant multiple of
IMIC's own capitalisation and met with initial scepticism in the
market, IMIC's success marks a significant extension of its
original objectives.
Comment: IMIC enjoys support from its strategic partner, the
privately held African and Iron Ore Group (AIOG), as well as from
Chinese interests in assuring access to supply sources for its
future iron ore requirements. With its Cameroun mining and
infrastructure project now added to its Guinea infrastructure work,
IMIC has become a major player in West Africa.
Further information is available on the IMIC website:
www.imicplc.com
Marechale Capital plc - AIM ticker: MAC
Unlike other investments, Marechale is not involved in the
mineral exploration business but an interest was acquired some
years ago when it was an adviser to companies quoted on what became
PLUS Markets and more recently, ISDX. Today it describes itself as
an investment banking and corporate finance business, using its
established relationships and sector specialisation to raise
capital and refinance high growth companies and funds in the
retail, leisure, renewable energy and infrastructure sectors.
Further information is available on the Marechale website:
www.marechalecapital.com
Minera IRL Limited - AIM ticker: MIRL
Minera IRL, South American precious metals mining, development
and exploration company listed on the AIM, Lima and Toronto TSX
markets, focuses its activities entirely on:
-- Peru where it operates the 100%-owned Corihuarmi gold mine,
and is developing the Ollachea underground mine while also
exploring a number of other gold prospects. Expected lower
production, grades and revenues from Corihuarmi have recently
impacted on Minera's significant financing requirement for the
Ollachea development, resulting in group losses.
-- In Argentina, a DFS has established Minera's Don Nicolas
gold-silver project as robust enough for mine construction, with
local equity and debt funding already fully secured. Minera's local
subsidiary retains a 51% interest in the project with production
intended by end 2014, with an annual forecast of 52,400 ounces gold
and 56,000 ounces silver over an initial mine life of 3.6 years,
but with further extensions adding to the project's potential.
Comment: While the market reacted unfavourably to news of the
Peru ventures and to overall funding uncertainties, the release of
the Don Nicolas arrangements has led to a favourable re-appraisal
of Minera's overall potential; predatory enquiries were swiftly
rejected by the company. Future developments seem likely.
Further information is available on the Minera website:
www.minera-irl.com
Starvest also holds investments in: Agricola Resources plc;
Alpha Universal Management plc, CAP Energy Limited; Carpathian
Resources Limited; Equity Investors plc; Equity Resources plc;
Fundy Minerals Limited; Gippsland Limited; Goliath Resources Inc.;
Kincora Copper Limited; Kuwait Energy plc; Treslow Limited.
Kuwait Energy is worth an additional comment: the holding is as
a result of the acquisition in 2006 ago of a substantial stake in
the original holding in Concorde Oil & Gas plc. A London
listing for Kuwait is expected.
Profit and loss account
for the year ended 30 September 2013
Year ended Year ended
30 September 30 September
2013 2012
GBP GBP
Operating income - -
Direct costs - -
-------------------------------------------- ------------- -------------
Gross profit - -
Administrative expenses (206,702) (199,791)
Amounts written off trade investments (802,394) (842,703)
-------------------------------------------- ------------- -------------
Operating loss (1,009,096) (1,042,494)
Interest receivable 1,835 10,932
Interest payable - -
-------------------------------------------- ------------- -------------
Loss on ordinary activities before taxation (1,007,261) (1,031,562)
Tax on loss on ordinary activities 127 284,044
-------------------------------------------- ------------- -------------
Loss on ordinary activities after taxation (1,007,134) (747,518)
-------------------------------------------- ------------- -------------
(2.7)
Loss per share - basic and diluted pence (2.0) pence
-------------------------------------------- ------------- -------------
There are no recognised gains and losses in either year other
than the result for the year.
All operations are continuing.
Balance sheet
As at 30 September 2013
30 September 30 September
2013 2012
GBP GBP
---------------------------- ------------ ------------
Current assets
Debtors 37,200 310,042
Trade investments 2,258,662 3,051,056
Cash at bank and in hand 257,556 199,036
---------------------------- ------------ ------------
2,553,418 3,560,134
Creditors - amounts falling
due within one year (46,659) (46,241)
---------------------------- ------------ ------------
Net current assets 2,506,759 3,513,893
---------------------------- ------------ ------------
Share capital and reserves
Called-up share capital 394,173 394,173
Share premium account 2,118,396 2,118,396
Profit and loss account (5,810) 1,001,324
---------------------------- ------------ ------------
Equity shareholders' funds 2,506,759 3,513,893
---------------------------- ------------ ------------
Cash flow statement
for the year ended 30 September 2013
Year ended Year ended
30 September 30 September
2013 2012
GBP GBP
------------------------------------------------ ------------- -------------
Net cash outflow from operating activities (227,360) (781,300)
Returns on investment and servicing of finance:
Interest received 1,835 10,932
Interest paid - -
------------------------------------------------ ------------- -------------
1,835 10,932
------------------------------------------------ ------------- -------------
Taxation recovered/(paid) 284,045 (762,546)
------------------------------------------------ ------------- -------------
Dividend paid - (183,586)
------------------------------------------------ ------------- -------------
Financing:
Issue of new shares - 22,000
------------------------------------------------ ------------- -------------
- 22,000
------------------------------------------------ ------------- -------------
Increase/(decrease) in cash in the year 58,520 (1,694,500)
------------------------------------------------ ------------- -------------
Loss per share
The basic loss per share is derived by dividing the loss for the
year attributable to ordinary shareholders by the weighted average
number of shares in issue.
Year ended Year ended
30 September 30 September
2013 2012
GBP GBP
------------------------------------ ------------- -------------
Loss for the year (1,007,134) (747,518)
------------------------------------ ------------- -------------
Weighted average number of Ordinary
shares of GBP0.01 in issue 37,117,259 36,967,532
Loss per share - basic (2.7) pence (2.0) pence
------------------------------------ ------------- -------------
Weighted average number of Ordinary
shares of GBP0.01 in issue
inclusive of outstanding options 40,092,259 37,383,926
Loss per share - diluted (2.7) pence (2.0) pence
------------------------------------ ------------- -------------
The weighted average number of shares in issue excludes
outstanding options exercisable at 15 pence per share as they are
out of the money.
In view of the loss for the year, the options have no dilutive
effect.
Notes
1 The financial information set out above
does not constitute statutory accounts
as defined in the Companies Act 2006.
The balance sheet at 30 September 2013,
the profit and loss account, and the cash
flow statement for the year then ended
have been extracted from the Company's
statutory financial statements upon which
the auditor's opinion is unqualified and
does not include any statement under Section
498 of the Companies Act 2006.
2 The Directors do not recommend the payment
of a dividend for the year.
3 Copies of the report and financial statements
will be posted to Shareholders no later
than 18 November 2013 and will be available
for a period of one month thereafter from
the Company Secretary at the following
business address: 67 Park Road, Woking,
Surrey, GU22 7DH, email: email@starvest.co.uk
Alternatively, the report may be downloaded
from the Company's website, www.starvest.co.uk
.
Enquiries to:
-- Bruce Rowan, telephone 020 7486 3997
-- John Watkins, telephone 07768 512404, or to john@starvest.co.uk
-- Colin Aaronson or Ed Thomas, Grant Thornton UK LLP, telephone 020 7383 5100
END
This information is provided by RNS
The company news service from the London Stock Exchange
END
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