TIDMTHR
RNS Number : 0756G
Thor Mining PLC
27 February 2015
Friday 27 February 2015
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 2014.
The following announcement was today released on the Australian
Stock Exchange ("ASX) as required under the listing rules of the
ASX.
A copy of the full Interim Report for the six months ended 31
December 2014 may be found on the Company's website at
www.thormining.com.
Enquiries:
Mick Billing +61 (8) 7324 1935 Thor Mining PLC Executive Chairman
Ray Ridge +61 (8) 7324 1935 Thor Mining PLC CFO/Company
Secretary
Colin Aaronson/ +44 (0) 207 383 Grant Thornton Nominated Adviser
Richard Tonthat/ 5100 UK LLP
Harrison Clarke
Andrew Monk/ +44 (0) 20 3005 VSA Capital Ltd Broker
Bhavesh Patel 5000
Alex Walters +44 (0) 7771 713608 Cadogan PR Financial PR
+44 (0) 207 839
9260
Thor Mining PLC - Half Yearly Report 31 December 2014
HIGHLIGHTS
-- Completion of an upgraded feasibility study for the Molyhil
tungsten project in Australia's Northern Territory showing robust
outcomes.
-- Acquisition of the Pilot Mountain Tungsten Project in Nevada (USA).
REVIEW OF OPERATIONS
The Company has continued to make progress on its core Molyhil
tungsten project with completion of an expanded open cut ore
reserve study, and an updated project feasibility study.
Additionally during the half year, Thor Mining completed the
acquisition of the Pilot Mountain tungsten project, located in
Nevada USA. The net result of operations for the half-year was a
loss of GBP579,000 (2013: GBP380,000).
Molyhil Tungsten project
The selling price in Europe of Tungsten APT, at 13 February
2015, sits at US$300/mtu, while the price of Molybdenum Roasted
Concentrates is US$8.20/lb.
Project Development
Activities during the period were devoted to a significant
upgrade of the Molyhil Feasibility Study, where, following a 50%
increase in the project's open cut ore reserve, estimates for
capital and operating costs were upgraded, including outcomes from
significant process improvements.
Table1. Molyhil Key Features
Project NPV post tax & A$67 million
Royalties
Project IRR after tax 44% All Equity Case
& royalties
Project Capex A$70 million All Equity Case
Life of Mine C1 Cash Cost US$112/mtu
Life of Mine EBITDA A$201 million
Payback from 1(st) production 18 months
Project Life 6 years
Average feed grade 0.31% WO 0.41
WO after
ore
sorting
0.12% Mo 0.12%
Mo after
ore
sorting
Operating throughput
* Crushing & Sorting 500,000 tpa
400,000 tpa After
ore
* Milling/Flotation etc sorting
Annual Production Average 130,000 mtu * 1mtu
* = 10Kg
of contained
WO
------------------------------ -------------- ------------------
While the APT tungsten price currently sits at its 4 year low
point, industry forecasts suggest a rebound commencing around mid
2015 driven by strong supply - demand fundamentals. Project
modelling however shows full capital cost payback, at this low
price level, of 24 months from commencement of production, after
payment of taxes & royalties.
Table 2: Molyhil Open Cut Ore Reserve Statement - Compliant with
JORC 2012 (Announced 29 July 2014)
Classification Reserve WO(3) Mo
'000 Tonnes Grade Contained Grade Contained
% metal (t) % metal
(t)
---------------- ------------ -------- ---------- -------- ----------
Probable 3,000 0.31 9,200 0.12 3,600
---------------- ------------ -------- ---------- -------- ----------
Total 3,000 0.31 9,200 0.12 3,600
---------------- ------------ -------- ---------- -------- ----------
Notes: -- Thor Mining PLC holds 100% equity interest in this reserve
-- Estimates have been rounded to reflect accuracy
-- All estimates are on a dry tonne basis
-- The reserve estimate extends to a maximum depth below surface of 150 metres
Mining is planned using conventional open cut mining methods;
contract drill & blast, followed by owner operated excavation
and haulage.
An average pit slope of 48˚ currently provides for a waste to
ore ratio of 5.2:1. There may be an opportunity to improve this
ratio during operations and via targeted geo-technical
drilling.
Mineral processing involves:
-- Two stage crushing to -55mm
-- X-Ray (XRT) ore sorting at two sizes:
-- 55mm to +25mm,
-- 25mm to +10mm
-- Tertiary crushing
-- Two stage grinding using a rod mill followed by a ball mill
-- Three stage flotation circuit:
-- Molybdenum flotation
-- Sulphide flotation
-- Scheelite flotation
-- Scheelite concentrate dressing
Concentrate Offtake and Finance
In 2013, Thor received a Letter of Intent from US-based Global
Tungsten & Powders undertaking, subject to due diligence and
sourcing project finance, to purchase 70% to 75% of tungsten
concentrates produced from Molyhil, at pricing benchmarked against
Metal Bulletin (LMB) APT European free-market prices. Discussions
with other parties, in respect of the balance of the concentrates,
continue.
Thor is reviewing all likely scenarios for project finance, and
has retained advisors to assist this process. Preliminary
discussions with several interested parties have commenced.
Pilot Mountain Tungsten project (Nevada, US)
During the period, Thor completed the acquisition of the Pilot
Mountain tungsten project in the United States for consideration of
418,750,000 ordinary shares in Thor. These shares are subject to a
12 month escrow period, expiring 27 October 2015.
Following the acquisition, Thor holds 100% equity interest
in:
-- A 2012 JORC compliant Indicated and Inferred Resource of 6.8
million tonnes @ 0.31% WO(3,) plus attractive copper and silver
credits at the Desert Scheelite deposit; plus
-- Exploration targets(1) of 11.0 to 23.0 million tonnes @ 0.30
- 0.50% WO(3) within very close proximity to the Desert Scheelite
deposit.
(1) Exploration Targets are conceptual in nature and there has
been insufficient exploration to define a Mineral Resource under
the 2012 JORC Code and it is uncertain if further exploration will
result in the determination of a Mineral Resource
The Desert Scheelite Indicated + Inferred Resource comprises a
2012 JORC Compliant 6.8 million tonnes @ 0.31% WO(3) , 0.17%
Copper, and 22.8g/t (grams/tonne) Silver, announced on 10 June
2014.
Table 3: Desert Scheelite Resource Estimate - Compliant with
JORC 2012(Announced 10 June 2014)
Desert Resource WO(3) Ag Cu
Scheelite
---------------
Tonnes Grade Contained Grade g/t Contained Grade Contained
% metal metal % metal (t)
(t) (t)
--------------- ---------- ----- ---------- ---------- --------- ------ ----------
Indicated 6,090,000 0.31 18,900 24.2 150 0.16 10,000
Inferred 700,000 0.30 2,100 9.1 10 0.24 2,000
--------------- ---------- ----- ---------- ---------- --------- ------ ----------
Total 6,790,000 0.31 21,000 22.8 160 0.17 12,000
--------------- ---------- ----- ---------- ---------- --------- ------ ----------
Note: Thor Mining PLC holds 100% equity interest in this
resource
Table 4: Pilot Mountain Exploration Target summary (Announced 1
December 2014)
Tonnage % WO(3) Comment
(Mt)
------------------ ------------ ----------- ----------------------------
Tier 1 Targets 7.5 - 13.5 0.3 - Based on historic drill
0.5 intersections
------------------ ------------ ----------- ----------------------------
Tier 2 Targets 3.5 - 9.1 0.3 - Based on favourable geology
0.5 and proximity to known
mineralisation.
------------------ ------------ ----------- ----------------------------
Total Exploration 11.0 - 23.0 0.3 - Combined Tier 1 & 2
Target* 0.5
------------------ ------------ ----------- ----------------------------
Exploration activities at Pilot Mountain are dependent upon
raising the necessary finance. Thor is evaluating alternatives to
facilitate that work, including options which involve securing a
joint venture partner for the project.
Gold Exploration projects
Spring Hill - Northern Territory
The Spring Hill gold project is located on pastoral leasehold
land approximately 150 km south-east of Darwin in Australia's
Northern Territory. The location is served by all-weather access
and is in close proximity to the sealed arterial Stuart Highway,
north-south rail, gas pipeline and trunk powerlines.
Directors continue to evaluate all opportunities for this
project. However, prioritising expenditure on other projects has
prevented progress on additional exploration activities at Spring
Hill.
Dundas - Western Australia
The Dundas gold project is located approximately 100 kilometres
east-south-east of Norseman in Western Australia. The tenements are
in close proximity to the sealed arterial Eyre Highway, providing
all-weather access to the project area. It is also approximately
250 kilometres south of the major regional mining centre of
Kalgoorlie.
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 GBP783,000 before capital
raising costs following the issue of 764.5 million shares at an
average price of 0.102 pence, and issued 584.9 million shares for
the acquisition of Pilot Mountain and extinguishing associated
loans (at an average price of 0.146 pence).
The Company is in discussion with a number of parties with the
aim of securing project finance for the Molyhil project, and also
to maintain minimum working capital requirements.
Comprehensive Income
The comprehensive income statement records a comprehensive loss
of GBP1,009,000 (2013: GBP1,494,000) after taking into account
unfavourable unrealised exchange differences of GBP430,000 (2013:
GBP1,114,000).
Mick Billing
Executive Chairman
26 February, 2015
Competent Person's 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 2004
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 2014 comprising the Consolidated Statement of
Comprehensive Income, Consolidated Statement of Financial Position,
Consolidated Statement of Changes in Equity, Consolidated Statement
of 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 2014.
CHAPMAN DAVIS LLP
Chartered Accountants
2 Chapel Court
London SE1 1HH
26 February 2015
Condensed Consolidated Statement of Comprehensive Income
For the 6 months ended 31 December 2014
Note GBP'000 GBP'000 GBP'000
6 months ended 6 months ended Year
31 December 31 December ended
2014 2013 30 June
2014
Unaudited Unaudited Audited
Administrative expenses (58) (62) (136)
Corporate expenses (470) (321) (498)
Unrealised loss on financial
assets (99) - (164)
Unrealised gain on financial
liabilities 26 - 54
Realised gain on financial
assets 39 - -
Operating Loss (562) (383) (744)
Interest received 2 3 3
Interest paid (19) - (39)
-------------- -------------- --------
Loss before Taxation (579) (380) (780)
Taxation - - -
-------------- -------------- --------
Loss for the period (579) (380) (780)
-------------- -------------- --------
Other comprehensive income:
Exchange differences on translating
foreign operations (430) (1,114) (1,000)
-------------- -------------- --------
Other comprehensive income
for the period, net of income
tax (430) (1,114) (1,000)
Total comprehensive income
for the period (1,009) (1,494) (1,780)
============== ============== ========
Basic loss per share 2 (0.02)p (0.03)p (0.06)p
Condensed Consolidated Statement of Financial Position
At 31 December 2014
Note GBP'000 GBP'000 GBP'000
31 December 31 December 30 June
2014 2013 2014
Unaudited Unaudited Audited
ASSETS
Non-current assets
Intangible assets - deferred
exploration costs 3 11,043 9,903 10,246
Trade receivables and other
assets 103 - 225
Deposits to support performance
bonds 14 49 50
Plant and equipment 26 46 35
Total non-current assets 11,186 9,998 10,556
------------ ------------ ------------
Current assets
Cash and cash equivalents 20 198 10
Trade receivables and other
assets 63 5 84
Prepayments 47 14 -
Total current assets 130 217 94
------------ ------------ ------------
Total assets 11,316 10,215 10,650
------------ ------------ ------------
LIABILITIES
Current liabilities
Trade and other payables (299) (207) (351)
Provisions (12) (18) (12)
Non-interest bearing liabilities (165) - -
------------ ------------ ------------
Total current liabilities (476) (225) (363)
------------ ------------ ------------
Non-current liabilities
Interest bearing liabilities (527) (543) (553)
Total non-current liabilities (527) (543) (553)
------------ ------------ ------------
Total liabilities (1,003) (768) (916)
------------ ------------ ------------
Net assets 10,313 9,447 9,734
============ ============ ============
Equity
Issued share capital 4 3,155 2,984 3,020
Share premium 4 15,328 13,347 13,884
Foreign exchange reserve 1,645 1,961 2,075
Merger reserve 405 405 405
Option revaluation reserve 53 64 44
Retained losses (10,273) (9,314) (9,694)
------------ ------------ ------------
Total equity 10,313 9,447 9,734
============ ============ ============
Condensed Consolidated Statement of Change in
Equity
For the 6 months ended 31 December
2014
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Issued Share Retained Foreign Merger Share Total
share premium earnings Currency Reserve Based
capital Translation Payment
Reserve Reserve
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) -
-------- -------- ------------- ----------- --------- --------- -------
At 31 December
2013 2,984 13,347 (9,314) 1,961 405 64 9,447
-------- -------- ------------- ----------- --------- --------- -------
Balance at 1 July
2013 2,948 12,520 (9,050) 3,075 405 180 10,078
Loss for the period - - (780) - - - (780)
Foreign currency
translation reserve - - - (1,000) - - (1,000)
Total comprehensive
(loss) for the period - - (780) (1,000) - - (1,780)
-------- -------- ------------- ---------- ---------- --------- -------
Transactions with owners in their capacity
as owners
Shares issued 72 1,463 - - - - 1,535
Cost of shares issued - (99) - - - - (99)
Share options lapsed - - 136 - - (136) -
At 30 June 2014 3,020 13,884 (9,694) 2,075 405 44 9,734
-------- -------- ------------- ---------- ---------- --------- -------
Balance at 1 July
2014 3,020 13,884 (9,694) 2,075 405 44 9,734
Loss for the period - - (579) - - - (579)
Foreign currency
translation reserve - - - (430) - - (430)
Total comprehensive
loss for the period - - (579) (430) - - (1,009)
-------- -------- ------------- ----------- --------- --------- -------
Transactions with owners in their capacity
as owners
Shares issued 135 1507 - - - - 1,642
Cost of shares
issued - (54) - - - - (54)
Share options issued - (9) - - - 9 -
-------- --------
At 31 December
2014 3,155 15,328 (10,273) 1,645 405 53 10,313
-------- -------- ------------- ----------- --------- --------- -------
Condensed Consolidated Statement of Cash Flow
For the 6 months ended 31 December
2014
GBP'000 GBP'000 GBP'000
6 months ended 6 months ended Year
31 December 31 December ended
2014 2013 30 June
2014
Unaudited Unaudited Audited
Cash flows from operating activities
Operating Loss (562) (383) (744)
Decrease/(increase) in trade and
other receivables 5 - (1)
Increase/(decrease) in trade and
other payables (48) (81) 59
Increase/(decrease) in provisions - 5 (1)
Depreciation 11 13 23
Unrealised gain on financial liabilities (26) - (54)
Share based payment expense 214 - 97
Unrealised loss on financial assets 99 - 164
Realised gain on financial (39) - -
Net cash outflow from operating activities (346) (446) (457)
Cash flows from investing activities
Interest received 2 3 3
Interest paid (19) - (39)
Refunds of / Expenditure on performance
bonds 33 - -
Disposal of financial assets 54 2 2
Purchase of property, plant and equipment (3) - -
Payments for exploration expenditure (231) (392) (563)
Net cash outflow from investing activities (164) (387) (597)
Cash flows from financing activities
Borrowings - - -
Repayment of borrowings - - -
Net issue of ordinary share capital 520 863 941
-------------- --------
Net cash inflow from financing activities 520 863 941
Net decrease in cash and cash equivalents 10 30 (113)
Cash and cash equivalents at beginning
of period 10 188 188
Exchange rate adjustments on opening
cash balances - (20) (65)
-------------- -------------- --------
Cash and cash equivalents at end
of period 20 198 10
-------------- -------------- --------
Notes to the Half-yearly Report
For the 6 months ending 31 December 2014
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 2014 annual report
and to be adopted in the 2015 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 2014 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 2014.
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 ended 6 months ended Year
31 December 31 December ended
2014 2013 30 June
2014
Unaudited Unaudited Audited
Loss for the period (579) (380) (780)
Weighted average number of Ordinary
shares in issue 2,484,108,680 1,170,765,880 1,361,701,716
Loss per share - basic (0.02)p (0.03)p (0.06)p
Notes to the Half-yearly Report
For the 6 months ending 31 December 2014
3. DEFERRED EXPLORATION COSTS
GBP'000 GBP'000 GBP'000
31 December 31 December 30 June
2014 2013 2014
Cost Unaudited Unaudited Audited
At commencement 10,246 10,557 10,557
Exchange loss (438) (1,118) (941)
Additions 197 464 669
Disposals - - (39)
Business Combination (refer Note
5) 1,038 - -
------------ ----------- -------
At period end 11,043 9,903 10,246
------------ ----------- -------
Impairment
At commencement - - -
Exchange loss - - -
Impairment for period - - -
Write off exploration tenements - - -
------------ ----------- -------
At period end - - -
------------ ----------- -------
Net book value at period end 11,043 9,903 10,246
------------ ----------- -------
Having reviewed the deferred exploration and evaluation
expenditure at 31 December 2014, the directors are satisfied that
no provision for impairment is required.
Notes to the Half-yearly Report
For the 6 months ending 31 December 2014
4. SHARE CAPITAL GBP'000 GBP'000 GBP'000
31 December 31 December 30 June 2014
2014 2013
Unaudited Unaudited Audited
Issued fully paid (Nominal Value)
982,870,766 deferred shares of GBP0.0029
each 2,850 2,850 2,850
Ordinary shares of GBP0.0001 each 305 134 170
------------------ ------------------- ----------------
3,155 2,984 3,020
================== =================== ================
Number Number Number
31 December 31 December 30 June 2014
2014 2013
Unaudited Unaudited Audited
Movement in share capital
Ordinary Shares of 0.01 pence 1,703,669,855 982,814,766 982,814,766
Shares issued for Acquisition 418,750,000 - -
Shares issued for cash 669,444,444 333,788,887 695,687,283
Exercise of warrants 455,778 57,806 167,806
Shares issued to extinguish debt 166,129,526 - -
Shares issued in lieu of expenses 94,641,608 25,000,000 25,000,000
------------------ ------------------- ----------------
At period end 3,053,091,211 1,341,661,459 1,703,669,855
================== =================== ================
GBP'000 GBP'000 GBP'000
31 December 31 December 30 June 2014
2014 2013
Nominal plus Premium Unaudited Unaudited Audited
At commencement 16,904 15,468 15,468
Shares issued for Acquisition (Refer
Note 5) 688 - -
Shares issued for cash (net of costs) 519 766 1,338
Exercise of warrants 3 - 1
Shares issued to extinguish debt
(Refer Note 5) 164 - -
Shares issued in lieu of expenses 214 97 97
Share options issued (9) - -
------------------ ------------------- ----------------
At period end 18,483 16,331 16,904
------------------ ------------------- ----------------
Change in Nominal Value
Prior to a Shareholders Meeting on 3 September 2013, the nominal
value of shares in the Company was 0.3 pence. At that meeting the
Company's shareholders approved 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 0.01 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 are not quoted and carry no rights whatsoever.
5. BUSINESS COMBINATION
On 27 October 2014 Thor Mining PLC acquired 100% of the issued
shares in Black Fire Industrial Minerals Pty Ltd, an exploration
company, for consideration of GBP687,797. The acquired company
controls Mining Claims situated in south-western Nevada, referred
to as the Pilot Mountain project. Pilot Mountain contains Indicated
and Inferred Resource of 6.8 million tonnes @ 0.31% Tungsten, plus
copper and silver credits, together with further potential
exploration upside.
The acquisition continues Thor's strategy to focus on Tungsten,
and together with the existing Molyhil Project, has the potential
to position Thor as a long term tungsten concentrate supplier.
Purchase consideration of GBP687,797 consisted of 418,750,000
Ordinary Shares in Thor. The Shares are listed on the ASX and held
in voluntary escrow until 27 October 2015. The fair value of the
shares issued was determined by reference to the closing price of
Thor Shares on the ASX at the date of acquisition of A$0.003, and
converted at the AUD/GBP exchange rate on that date.
The assets and liabilities recognised as a result of the
acquisition are as follows:
GBP'000
Intangible assets - Deferred Exploration
Costs (1) 1,038
Prepayments 37
Trade & other Payables (45)
Non-interest bearing liabilities (2) (342)
Net identifiable assets acquired 688
-------------------
(1) The book value of the Deferred Exploration costs in the
acquired company, Black Fire Industrial Minerals Pty Ltd, was
GBP1,262,000. A conservative position was taken in the accounting
for the acquisition, by writing down the deferred exploration costs
by GBP224,000 to reflect fair value at acquisition, rather than
recognising a gain on bargain purchase.
(2) The acquired company's parent, Black Fire Minerals Ltd (ASX
code 'BFE') had obtained borrowings of A$625,000 in March 2014, to
enable the completion of it's acquisition of the Pilot Mountain
Tungsten Project, subsequently creating the opportunity for Thor to
acquire the Pilot Mountain Tungsten Project from BFE. The
borrowings were novated by BFE to the acquired company, Black Fire
Industrial Minerals Pty Ltd, prior to the acquisition by Thor. The
borrowings included A$175,000 provided by Thor Directors (Messrs
Billing, Ashton, Ireland and Thomas). The Directors agreed to
convert their unsecured loans to Thor Shares, immediately upon
completion of the acquisition by Thor. Post acquisition, a further
A$125,000 of the borrowings were settled through the issue of
Shares in Thor. At 31 December 2014, the remaining borrowings of
A$325,000 (GBP165,000) are secured over the assets of Black Fire
Industrial Minerals Pty Ltd and are repayable by 27 September
2015.
Acquisition-related costs of GBP77,000 are included in Corporate
expenses in the Consolidated Statement of Comprehensive Income.
6. TURNOVER AND SEGMENTAL ANALYSIS - GROUP
The Group has a number of exploration licenses, and mining
leases, in Australia and the US State of Nevada. All exploration
licences in Australia are managed as one portfolio. The decision to
allocate resources to individual Australian projects in that
portfolio is predominantly based on available cash reserves,
technical data and the expectations of future metal prices. The
Group acquired the exploration assets in the US State of Nevada on
27 October 2014 (refer Note 5). All of these US licenses are
located in the one geological region. Accordingly, the Group has
identified its operating segments to be Australia and the United
States based on the two countries. 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.
GBP'000 GBP'000 GBP'000 GBP'000
Half Year ended 31/12/2014 Head office/ Australia United States Consolidated
Unallocated
Revenue
Interest Income - 2 - 2
Total Segment Revenue - 2 - 2
------------ --------- ------------- ------------
Total Segment Expenditure (77) (504) - (581)
------------ --------- ------------- ------------
Loss from Ordinary Activities
before Income Tax (77) (502) - (579)
Income Tax Benefit/(Expense) - - - -
------------ --------- ------------- ------------
Profit/(loss) (77) (502) - (579)
------------ --------- ------------- ------------
Assets and Liabilities
Segment assets - 10,009 1,133 11,142
Corporate assets 174 - - 174
------------ --------- ------------- ------------
Total Assets 174 10,009 1,133 11,316
------------ --------- ------------- ------------
Segment liabilities - 780 165 945
Corporate liabilities 58 - - 58
------------ --------- ------------- ------------
Total Liabilities 58 780 165 1,003
Net Assets 116 9,229 968 10,313
------------ --------- ------------- ------------
7. GOING CONCERN BASIS OF ACCOUNTING
The financial report has been prepared on the basis of a going
concern.
The consolidated entity incurred a net loss before tax of
GBP579,000 during the period ended 31 December 2014, and had a net
cash outflow of GBP510,000 from operating and investing activities.
The consolidated entity continues to be reliant upon completion of
capital raising for continued operations and the provision of
working capital.
If additional capital is not obtained, the going concern basis
may not be appropriate, with the result that the Group may have to
realise its assets and extinguish its liabilities, other than in
the ordinary course of business and at amounts different from those
stated in the financial report. No allowance for such circumstances
has been made in the financial report.
8. POST BALANCE SHEET EVENTS
No matters or circumstances have arisen since the end of the
half year which significantly affected, or may significantly
affect, the operations of the consolidated entity, the results of
those operations or state of affairs of the consolidated entity in
future financial years.
DIRECTORS, SECRETARY AND ADVISERS
Directors Michael Robert Billing (Executive Chairman)
Michael Kevin Ashton (Non-executive Director)
Gregory Michael Durack (Non-executive Director)
Trevor John Ireland (Non-executive Director)
David Edward Thomas (Executive Director)
In UK In Australia
------------------------- ----------------------------
Registered Office and Third Floor 58 Galway Avenue
Directors' business 55 Gower Street Marleston, South Australia
address London WC1E 6HQ Australia 5033
Company Secretaries Stephen Frank Ronaldson Ray Ridge
Website www.thormining.com www.thormining.com
Nominated Adviser to Grant Thornton Corporate
the Company Finance
30 Finsbury Square
London EC2P 2YU
UK Broker to the Company VSA Capital Limited
New Liverpool House
15-17 Eldon Street
London, EC2M 7LD
Auditors to the Company Chapman Davis LLP
2 Chapel Court
London SE1 1HH
Solicitors to the Company Ronaldsons LLP Watson Lawyers
55 Gower Street Ground Floor,
London WC1E 6HQ 60 Hindmarsh Square
Adelaide SA 5000
Registrars Computershare Investor Computershare Investor
Services Plc Services Pty Ltd
The Pavilions Level 2, 45 St Georges
Bridgewater Road Terrace, Perth
Bristol BS99 6ZY Western Australia 6000
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR TRMLTMBJTMTA
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