TIDMTHR
RNS Number : 0153C
Thor Mining PLC
12 March 2014
Wednesday 12 March 2014
THOR MINING PLC
Thor Mining PLC ("Thor" or the "Company")
Interim Results
Thor Mining PLC (AIM, ASX: THR) is pleased to announce its
interim results for the six months ended 31 December 2013.
HIGHLIGHTS
-- Letter of Intent secured from potential customer, Global
Tungsten and Powders Corporation of USA to purchase 70% to 75% of
tungsten concentrates from Molyhil. Discussions continue with other
parties in respect of the balance of the concentrates.
-- Completion of exploration expenditure to enable the
acquisition of an additional 29% of the Spring Hill gold project,
representing the final stage in the acquisition of an 80% equity
holding in the project from Western Desert Resources Limited
(WDR).
-- Screen fire assays and subsequent metallurgical testwork
upgrades gold assays at Spring Hill, and demonstrates low cost high
gold recovery.
A copy of the full Interim Report for the six months ended 31
December 2013 may be found on the Company's website at
www.thormining.com.
For further information please contact:
Mick Billing +61 (0) 8 7324 1935 Thor Mining PLC Executive Chairman
Allan Burchard +61 (0) 8 7324 1935 Thor Mining PLC CFO/Company Secretary
Colin Aaronson +44 (0) 20 7383 Grant Thornton UK Nominated Adviser
/ David Hignell 5100 LLP
Nick Emerson/ +44 (0) 1483 413500 Simple Investments Broker
Renato Rufus
Alex Walters/ +44 (0) 77 7171 Cadogan PR Financial PR
3608
+44 (0) 20 7839
9260
REVIEW OF OPERATIONS
The Company has continued to make progress on its key Molyhil
and Spring Hill projects with a Letter of Intent for an off-take
agreement for the Molyhil Tungsten project and very good
exploration results at Spring Hill. The Company has been able to
attract additional funds to progress these projects and the
Directors were pleased to recently announce further funding after
the period end. The net result of operations for the half-year was
a loss of GBP380,000 (2012: GBP744,000).
Molyhil Tungsten/Molybdenum project
The selling price in Europe of Tungsten APT, at 11 March 2014,
sits at US$370/mtu, while the price of Molybdenum Roasted
Concentrates is US$9.80/lb.
Project Development
Discussions with potential customers for project concentrates
resulted in Thor securing a Letter of Intent from US based Global
Tungsten & Powders Corporation, to purchase 70% to 75% of
Molyhil tungsten concentrate production. This will be at pricing
benchmarked against Metal Bulletin (LMB) APT European free-market
price, and continues to be subject to due diligence and sourcing
project finance. Securing this finance continues to be a priority
for the Directors as does negotiations with other parties in
respect of sales for the balance of the concentrate.
Ongoing Optimisation Studies
The Company has determined that achieving operating cost
reductions holds the potential to improve substantially the
economic returns particularly by converting more of the resource
estimate into the ore reserve and mining plan. Cost savings in the
order of 15% compared to those published in the 2012 Definitive
Feasibility Study (DFS) have been identified to date, with more
under evaluation.
Following the identification of the potential to pre-concentrate
ore via ore sorting, a regime of metallurgical testwork commenced
to confirm that the pre-concentrated ore makeup does not present
issues for the metallurgical process, along with work to reduce
levels of some deleterious elements in the concentrate more cost
effectively. This work is nearing completion.
Gold Exploration projects
Spring Hill - Northern Territory
Project Exploration
A Reverse Circulation (RC) drilling program comprising 2,171
metres from 25 holes was completed during the period. The program
which targeted near surface mineralisation most likely to enhance
the initial mining inventory was completed in November. A complete
table of significant intercepts was reported in October 2013 and
December 2013.
The program proved very successful with several holes
intersecting mineralisation outside of the existing resource.
A selection of samples from the 2013 RC drill program was
resubmitted for screen fire assay, and the results confirmed that a
significant amount of the gold mineralisation is coarse grained and
thus is potentially amenable to gravity separation. Additionally,
the screen fire assays returned predominantly higher gold grades
than the earlier conventional fire assay. The following table
(Table 1) shows average upgrades for various grade ranges, as
reported in January 2014, and indicates a substantial improvement
in most ranges.
Table 1: Percentage upgrade of contained gold from
screen fire assay of 2013 RC drilling program
From To No of Original Screen Fire Upgrade % Upgrade
Samples Assay Average Assay Average
g/t g/t g/t g/t g/t
----- ----- --------- --------------- --------------- -------- ----------
<0.5 2 0.39 0.33 -0.06 -15%
0.5 1.0 17 0.72 1.29 0.57 +79%
1.0 1.5 9 1.26 1.85 0.59 +47%
1.5 2.0 6 1.68 2.02 0.34 +20%
2.0 2.5 8 2.29 4.75 2.46 +107%
2.5 3.0 10 2.68 4.15 1.47 +55%
3.0 3.5 6 3.23 4.05 0.82 +25%
3.5 4.0 9 3.76 5.29 1.53 +41%
>4.0 21 16.54 17.91 1.37 +8%
All original fire assays greater than 2.0g/t au, and
approximately one third of those between 0.5g/t and 2.0 g/t, were
submitted for subsequent screen fire assay testing.
Historical records show that less than 5% of samples, in the
grade range from 0.5g/t and above, from 23 kilometres of drilling
in the early 1990's were subject to follow-up screen fire assays.
Information about any upgrade in values from this time is
limited.
Subsequent metallurgical testwork demonstrated very high levels
of simple low cost gravity gold recovery, followed by column
leaching, gave an overall gold recovery of greater than 98%.
Additionally, this testwork reinforced the screen fire assay
upgrades reported above with upgrades of 69% from the largest Hong
Kong zone, and an average upgrade of 57% from the other zones.
Project Development
In April 2013, Thor signed a non-binding Memorandum of
Understanding (MOU) in respect of toll treatment of ore from Spring
Hill with Crocodile Gold Australian Operations Pty Ltd, a
subsidiary of Toronto-listed Crocodile Gold Corporation (TSX: CRK).
Thor also announced that, following positive results of a study to
extract over 40,000 ounces of gold from near surface oxide ore,
regulatory approvals for mine development would be sought. An
assessment of any upgrade possible following the 2013 drilling
program and subsequent screen fire assay results has not yet been
conducted.
Project Equity
Subsequent to the end of the period the Company confirmed it had
completed the exploration and evaluation expenditure necessary to
enable the acquisition of an additional 29% of the Spring Hill gold
project in Australia's Northern Territory.
This will represent the final stage in the acquisition of an 80%
equity holding in Spring Hill, from Western Desert Resources
Limited (WDR).
Dundas - Western Australia
Prioritising expenditure on other projects has delayedprogress
of planned exploration at Dundas. Exploration work on this project
continues to be conditional upon the availability of working
capital.
Finance
During the period, the Company raised GBP906,000 before costs
following the issue of 294 million shares in the United Kingdom at
an average price of 0. 237 pence, and 65 million shares in
Australia at an average price of 0.58 cents (0.34 pence).
On 21 February 2014, the Company announced that it had entered
into a subscription agreement whereby an international investor,
Lanstead Capital L.P., has agreed to provide GBP750,000 of equity
capital receivable over a 20 month period commencing in February
2014.
Comprehensive Income
The comprehensive income statement records a comprehensive loss
of GBP1,494,000 (2012: GBP926,000) after taking into account
unfavourable unrealised exchange differences of GBP1,114,000 (2012:
GBP182,000).
Mick Billing
Executive Chairman
11 March, 2014
Competent Persons statements
The information in this report that relates to exploration
results is based on information compiled by Richard Bradey, who is
a Member of The Australasian Institute of Mining and Metallurgy. Mr
Bradey is an employee of Thor Mining PLC. He has sufficient
experience which is relevant to the style of mineralisation and
type of deposit under consideration and to the activity which he is
undertaking to qualify as a Competent Person as defined in the 2012
Edition of the 'Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves'. Richard Bradey
consents to the inclusion in the report of the matters based on his
information in the form and context in which it appears.
INDEPENDENT REVIEW REPORT TO THOR MINING PLC
Introduction
We have been engaged by the Company to review the interim
consolidated financial statements for the six months ended 31
December 2013 comprising the Consolidated Statement of
Comprehensive Income, Consolidated Balance Sheet and Statement of
Changes in Equity and Cash Flows and related notes. We have read
the other information contained in the interim report and
considered whether it contains any apparent misstatements or
material inconsistencies with the information in the interim
financial statements.
This report is made solely to the Company in accordance with
guidance contained in ISRE 2410 (UK and Ireland) "Review of Interim
Financial Information Performed by the Independent Auditor of the
Entity" issued by the Auditing Practices Board. To the fullest
extent permitted by law, we do not accept or assume responsibility
to anyone other than the Company, for our work, for this report, or
for the conclusions we have formed.
Directors' Responsibilities
The interim financial report is the responsibility of, and has
been approved by the Directors. The Directors are responsible for
preparing the interim financial report in accordance with the rules
of the London Stock Exchange Plc for Companies trading securities
on the AIM Market. As disclosed in Note 1 the accounting policies
are consistent with those that the Directors intend to use in the
next financial statements. The interim financial statements
included in this interim report have been prepared in accordance
with International Accounting Standard 34 "Interim Financial
Reporting" as adopted by the European Union.
Our Responsibility
Our responsibility is to express to the Company a conclusion on
the interim financial statements in the interim report based on our
review.
Scope of Review
We conducted our review in accordance with International
Standard on Review Engagements (UK and Ireland) 2410, "Review of
Interim Financial Information Performed by the Independent Auditor
of the Entity", issued by the Auditing Practices Board for use in
the United Kingdom. A review of interim financial information
consists of making inquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other
review procedures. A review is substantially less in scope than an
audit conducted in accordance with International Standards on
Auditing (UK and Ireland) and consequently does not enable us to
obtain assurance that we would become aware of all significant
matters that might be identified in an audit. Accordingly, we do
not express an audit opinion.
Conclusion
Based on our review we are not aware of any material
modifications that should be made to the financial information as
presented in the interim financial statements for the six months
ended 31 December 2013.
CHAPMAN DAVIS LLP
Chartered Accountants
2 Chapel Court
London SE1 1HH
11 March 2014
Condensed Consolidated Statement of Comprehensive Income
For the 6 months ended 31 December
2013
Note GBP'000 GBP'000 GBP'000
6 months 6 months Year Ended
ended 31 ended 31 30 June
December December 2013
2013 2012
Unaudited Unaudited Audited
Administrative expenses (62) (79) (131)
Corporate expenses (321) (380) (686)
Share based payment expense - (32) (48)
Gain on disposal of assets - - 12
Write off/Impairment of exploration
assets - (259) (278)
Operating Loss (383) (750) (1,131)
Interest received 3 6 7
Loss before Taxation (380) (744) (1,124)
Taxation - - -
Loss for the period (380) (744) (1,124)
---------- ---------- -----------
Other comprehensive income:
Exchange differences on translating
foreign operations (1,114) (182) (776)
Other comprehensive income for
the period, net of income tax (1,114) (182) (776)
---------- ---------- -----------
Total comprehensive income for
the period (1,494) (926) (1,900)
========== ========== ===========
Basic loss per share 2 (0.03)p (0.09)p (0.13)p
Condensed Consolidated Balance
Sheet
At 31 December 2013
Note
GBP'000 GBP'000 GBP'000
31 December 31 December 30
2013 2012 June 2013
Unaudited Unaudited Audited
ASSETS
Non-current assets
Intangible assets - deferred exploration
costs 3 9,903 10,804 10,557
Deposits to support performance
bonds 49 74 55
Plant and equipment 46 82 66
Total non-current assets 9,998 10,960 10,678
--------------- ------------- -------------
Current assets
Cash and cash equivalents 198 60 188
Trade receivables and other assets 5 - 17
Prepayments 14 11 -
Total current assets 217 71 205
--------------- ------------- -------------
Total assets 10,215 11,031 10,883
--------------- ------------- -------------
LIABILITIES
Current liabilities
Trade and other payables (207) (241) (183)
Provisions (18) (18) (15)
Interest bearing liabilities - (1) -
--------------- ------------- -------------
Total current liabilities (225) (260) (198)
--------------- ------------- -------------
Non-current liabilities
Interest bearing liabilities (543) - (607)
Total non-current liabilities (543) - (607)
--------------- ------------- -------------
Total liabilities (768) (260) (805)
--------------- ------------- -------------
Net assets 9,447 10,771 10,078
=============== ============= =============
Equity
Issued share capital 4 2,984 2,710 2,948
Share premium 4 13,347 12,492 12,520
Foreign exchange reserve 1,961 3,670 3,075
Merger reserve 405 405 405
Option revaluation reserve 64 164 180
Retained losses (9,314) (8,670) (9,050)
--------------- ------------- -------------
Total equity 9,447 10,771 10,078
=============== ============= =============
Condensed Consolidated Statement of Change in
Equity
For the 6 months ended 31 December
2013
Foreign Share
Issued Currency Based
share Share Retained Translation Merger Payment
capital premium earnings Reserve Reserve Reserve Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 1 July
2012 2,284 11,718 (7,926) 3,851 405 132 10,464
Loss for the period - - (744) - - - (744)
Foreign currency
translation reserve - - - (182) - - (182)
Total comprehensive
loss for the period - - (744) (182) - - (926)
--------- --------- ---------- -------------- ---------- ---------- --------
Transactions with owners in their capacity
as owners
Shares issued 426 845 - - - - 1,271
Cost of shares
issued (70) - - - - (70)
Share options issued - - 32 32
--------- ---------
At 31 December
2012 2,710 12,493 (8,670) 3,670 405 164 10,771
--------- --------- ---------- -------------- ---------- ---------- --------
At 1 July 2012 2,284 11,718 (7,926) 3,851 405 132 10,464
Loss for the period - - (1,124) - - - (1,124)
Foreign currency
translation reserve - - - (776) - - (776)
Total comprehensive
loss for the period - - (1,124) (776) - - (1,900)
--------- --------- ---------- -------------- ---------- ---------- --------
Transactions with owners in their capacity
as owners
Shares issued 664 953 - - - - 1,617
Cost of shares
issued (151) - - - - (151)
Share options issued - - 48 48
At 30 June 2013 2,948 12,520 (9,050) 3,075 405 180 10,078
--------- --------- ---------- -------------- ---------- ---------- --------
Balance at 1 July
2013 2,948 12,520 (9,050) 3,075 405 180 10,078
Loss for the period - - (380) - - - (380)
Foreign currency
translation reserve - - - (1,114) - - (1,114)
Total comprehensive
loss for the period - - (380) (1,114) - - (1,494)
--------- --------- ---------- -------------- ---------- ---------- --------
Transactions with owners in their capacity
as owners
Shares issued 36 870 - - - - 906
Cost of shares
issued (43) - - - - (43)
Share options lapsed 116 - - (116) 0
--------- ---------
At 31 December
2013 2,984 13,347 (9,314) 1,961 405 64 9,447
--------- --------- ---------- -------------- ---------- ---------- --------
Condensed Consolidated Cash Flow Statement
For the 6 months ended 31 December
2013
GBP'000 GBP'000 GBP'000
6 months 6 months Year Ended
ended 31 ended 31 30 June
December December 2013
2013 2012
Unaudited Unaudited Audited
Cash flows from operating activities
Operating Loss (383) (750) (1,131)
Decrease/(increase) in trade and other
receivables 0 16 (10)
Increase/(decrease) in trade and other
payables (81) 53 54
Increase/(decrease) in provisions 5 6 3
Depreciation 13 14 27
Exploration expenditure written off - 259 278
Revaluation foreign currency loans - - (53)
Share based payment expense - 32 48
Profit on sale of fixed assets - - (12)
Net cash outflow from operating activities (446) (370) (796)
Cash flows from investing activities
Interest received 3 6 7
Expenditure on performance bonds - - 20
Proceed from sale of fixed assets 2 - 12
Purchase of property, plant and equipment 0 (16) (38)
Payments for exploration expenditure (392) (1,283) (1,564)
Net cash outflow from investing activities (387) (1,293) (1,563)
Cash flows from financing activities
Borrowings - - 660
Repayment of borrowings - (4) (5)
Net issue of ordinary share capital 863 1,201 1,376
---------- -----------
Net cash inflow from financing activities 863 1,197 2,031
Net decrease in cash and cash equivalents 30 (466) (328)
Cash and cash equivalents at beginning
of period 188 526 526
Exchange rate adjustments on opening
cash balances (20) - (10)
---------- ---------- -----------
Cash and cash equivalents at end of
period 198 60 188
---------- ---------- -----------
Notes to the Half-yearly Report
For the 6 months ending 31 December 2013
1. PRINCIPAL ACCOUNTING POLICIES
(a) Presentation of Half-yearly results
The half-yearly results have not been audited, but were the
subject of an independent review carried out by the Company's
auditors, Chapman Davis LLP. Their review confirmed that the
figures were prepared using applicable accounting policies and
practices consistent with those adopted in the 2013 annual report
and to be adopted in the 2014 annual report. The financial
information contained in this half-yearly report does not
constitute statutory accounts as defined by Section 435 of the
Companies Act 2006.
The half-yearly report has been prepared under the historical
cost convention.
The Directors acknowledge their responsibility for the
half-yearly report and confirm that, to the best of their
knowledge, the interim consolidated financial statements for the
six months ended 31 December 2013 have been prepared in accordance
with International Financial Reporting Standards, including IAS 34
"Interim Financial Statements", and complies with the listing
requirements for companies trading securities on the AIM market.
This half-year report does not include all the notes of the type
normally included in an annual financial report. Accordingly, this
report should be read in conjunction with the annual report for the
year ended 30 June 2013.
The Directors are of the opinion that on-going evaluations of
the Company's interests indicate that preparation of the accounts
on a going concern basis is appropriate.
(b) Basis of consolidation
The consolidated financial statements comprise the financial
statements of Thor Mining PLC and its controlled entities. The
financial statements of controlled entities are included in the
consolidated financial statements from the date control commences
until the date control ceases.
The financial statements of subsidiaries are prepared for the
same reporting period as the parent Company, using consistent
accounting policies.
All inter-company balances and transactions have been eliminated
in full.
2. LOSS PER SHARE
No diluted loss per share is presented as the effect of exercise
of outstanding options is to decrease the loss per share.
GBP'000 GBP'000 GBP'000
6 months 6 months Year Ended
ended 31 ended 31 30 June 2013
December December
2013 2012
Unaudited Unaudited Audited
Loss for the period (380) (744) (1,124)
Weighted average number of
Ordinary shares in issue 1,170,765,880 840,153,012 886,267,738
Loss per share - basic (0.03)p (0.09)p (0.13)p
Notes to the Half-yearly Report
For the 6 months ending 31 December 2013
3. DEFERRED EXPLORATION COSTS
GBP'000 GBP'000 GBP'000
31 December 2013 31 December 2012 30 June 2013
Cost Unaudited Unaudited Audited
At commencement 10,557 11,925 10,035
Exchange loss (1,118) (181) (688)
Additions 464 1,180 1,488
Write off exploration tenements - - (278)
------------------ ------------------- --------------
At period end 9,903 12,924 10,557
------------------ ------------------- --------------
Impairment
At commencement - 1,890 1,890
Exchange loss - (29)
Impairment for period - 259
Write off exploration tenements - - (1,890)
------------------ ------------------- --------------
At period end - 2,120 -
------------------ ------------------- --------------
Net book value at period end 9,903 10,804 10,557
------------------ ------------------- --------------
Having reviewed the deferred exploration and evaluation
expenditure at 31 December 2013, the directors are satisfied that
no provision for impairment is required.
Notes to the Half-yearly Report
For the 6 months ending 31 December 2013
4. SHARE CAPITAL
Number Number Number
31 December 31 December 30 June
2013 2012 2013
Shares Unaudited Unaudited Audited
Ordinary Shares of 0.3
pence
At commencement (1) 982,814,766 761,483,067 761,483,067
Less: Reclassified to:
Ordinary Shares of 0.01pence,
and 982,814,766
Deferred Shares of 0.29
pence 982,814,766
====================
Deferred Shares of 0.29
pence, as reclassified 982,814,766
Movements -
--------------------
At period end 982,814,766
====================
Ordinary Shares of 0.01
pence, as reclassified 982,814,766
Shares issued for exploration
tenements (2) - - 21,666,667
Shares issued for cash
(3) 333,788,887 141,942,856 198,991,332
Exercise of warrants 57,806 - -
Shares issued in lieu of
expenses (4) 25,000,000 - 673,700
-------------------- --------------------- ------------------
At period end 1,341,661,459 903,425,923 982,814,766
==================== ===================== ==================
GBP'000 GBP'000 GBP'000
Nominal plus Premium 31 December 31 December 30 June
2013 2012 2013
Unaudited Unaudited Audited
(1) At commencement 15,468 14,002 14,002
(2) Shares issued for exploration
tenements - - 86
(3) Shares issued for cash
(net of costs) 766 1,201 1,376
Exercise of warrants - - -
(4) Shares issued in lieu
of expenses 97 - 4
-------------------- --------------------- ------------------
At period end 16,331 15,203 15,468
-------------------- --------------------- ------------------
Change in Nominal Value of Shares
In August 2013, the company raised GBP697,250 (before costs)
through separate issues of 148,888,887 shares at 0.225 pence per
share and 144,900,000 shares at 0.250 pence per share.
In conjunction with that process, and recognising that prior to
that date, the nominal value of shares in the company was 0.3
pence, the company's shareholders approved, on 3 September 2013, a
re-organisation of the company's shares which resulted in the
creation of two classes of shares, being:
-- Ordinary shares with a nominal value of .01 pence, which will
continue as the company's listed securities.
-- Deferred shares with a value of 0.29 pence which, subject to
the provisions of the Companies Act 2006, may be cancelled by the
company, or bought back for GBP1 and then cancelled. These deferred
shares will not be quoted and are effectively worthless.
5. POST BALANCE SHEET EVENTS
On 21 February 2014, the Company announced that it had entered
into an agreement whereby an international investor, Lanstead
Capital L.P., has agreed to provide GBP750,000 of equity capital
receivable over a 20 month period commencing in February 2014.
The agreement provides that the company will issue a total of
336,898,396 ordinary shares of 0.01p each on the following
basis:
-- On 21 February 2014:
o Issue 178,957,219 ordinary shares of 0.01p each at a price of
0.23375p per share.
o Issue 15,042,781 ordinary shares of 0.01p each at a price of
0.23375p in payment of an initial transaction fee under the terms
of the placement.
-- Subject to shareholder approval to be sought at a General Meeting to be convened:
o Issue a further 141,898,396 ordinary shares of 0.01p each at a
price of 0.23375p per share.
o Issue a further 1,000,000 ordinary shares of 0.01p each at a
price of 0.23375p in payment of an initial transaction fee under
the terms of the placement.
6. TURNOVER AND SEGMENTAL ANALYSIS - GROUP
The Group has not commenced production and therefore recorded no
revenue.
The Group has a number of exploration licenses in Australia
which are managed on a portfolio basis. The decision to allocate
resources to individual projects in the portfolio is predominantly
based on available cash reserves, technical data and the
expectations of future metal prices. Accordingly, the Group
effectively operates as one segment, being exploration in
Australia. This is the basis on which internal reports are provided
to the Directors for assessing performance and determining the
allocation of resources within the Group
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR JBMBTMBABBBI
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