Last checked at 27 Sep 2012 07:00
27 September 2012
ASTAR MINERALS PLC
("Astar" or "the Company")
Half Yearly Report
Astar Minerals plc ("Astar" or the "Group") (AIM: ASTA), an operator of quarries in British Columbia, today announces its results for the six months ended 30 June 2012.
Financial Highlights
·; Revenues of £374k (H1 2011: £526k)
·; Administrative expenses decreased to £691k (H1 2011: £992k)
·; Operational loss decreased to £687k (H1 2011: £899k)
·; Finance expenses reduced to £84k (H1 2011: £117k)
·; Loss before tax reduced to £771k (H1 2011: £1,016k)
·; Loss per share reduced to 1.3p per share (H1 2011: 4.3p)
Operational Highlights
·; Completion of the BC Hydro cable diversion has allowed access to further reserves at Quadling Quarry.
·; In January 2012, the shareholders approved a share capital reorganisation and in February 2012, Astar entered into a standby equity distribution agreement with Yorkville Advisors.
·; In March 2012, Astar placed 33,610,000 new ordinary shares of 0.1p each at 2.5p per share, raising £798,000 net of expenses. 16,805,000 warrants were issued on the basis of 1 warrant for every 2 new ordinary shares issued. The warrants will be exercisable at a price of 5p per share at any time until April 2013.
·; In April 2012, Astar through its subsidiary in Canada remortgaged the Quadling Quarry property, achieving a lower rate of interest of 11.5% for the same principal amount.
Post Balance Sheet
The Board has announced separately that they have signed heads of terms with Aggregates West, Inc. and Valley View Sand and Gravels, Inc, to operate a number of quarries based in an area between the US/Canadian border and Seattle. A separate announcement including full details has been made. Since the period end, we have also raised a further £222,000 locally in Canada.
Lynda Chase-Gardener, Chairman of Astar, commented:
"I am pleased to report my first interim results as Executive Chairman of Astar. Revenue for this period is down on the previous period due to the diversion of the BC Hydro cable during the first quarter and then poor weather during April. Volumes, however, have now picked up in June, July and August to equal the level of the previous year. September is also going well. Our focus on operating costs has reduced our unit costs and we expect this trend to continue. Administrative expenses have also decreased for the period.
"We have now instigated a number of changes throughout the organisation and, as a result, we have managed to increase our average prices by 6% over the half year and almost 7% for July and August compared to the previous period. We expect this to continue for the remainder of the year. Looking ahead, I am confident that the Group is now well positioned to pursue its growth strategy. The core business is stable and we are exploring a number of opportunities to expand the business, whilst keeping a firm control on costs."
For further information please visit the Company's website (www.AstarMinerals.com) or contact:
Astar Minerals plc |
|
Lynda Chase-Gardener, Executive Chairman | Tel: +44 (0) 1206 230770 |
Euan McAlpine, Executive Director | Tel: +44 (0) 182 925 0576 |
Zeus Capital Limited (Nomad and Joint Broker) |
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Ross Andrews | Tel: +44 (0) 161 831 1512 |
John Goold | Tel: +44 (0) 207 016 8925 |
Alexander David Securities Limited (Joint Broker) |
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David Scott / Bill Sharp | Tel: +44 (0) 207 448 9800 |
Peterhouse Corporate Finance (Joint Broker) |
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Jon Levinson / Lucy Williams | Tel: +44 (0) 207 562 3357 |
Walbrook PR (Investor Relations) |
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Paul Cornelius / Lianne Cawthorne | Tel: +44 (0) 207 933 8780 |
Notes to Editor:
Astar Minerals opened Quadling Quarry in the spring of 2010. The Quarry is located adjacent to Highway 1, close to the cities of Abbotsford and Chilliwack, in the Fraser Valley Regional District of British Columbia, Canada.
The Quarry produces a wide range of quality crushed rock meeting MMCD specifications. It supplies crushed aggregate materials to local contractors, developers, the agricultural industry and private home owners throughout the Lower Mainland and Greater Vancouver Area.
HALF YEARLY REPORT
Overview
Revenue for the six month period was £374,000 (H1 2011: £526,000). The loss before tax was £771,000 (H1 2011: £1,016,000). Financial Expenses were £84,000 (H1 2011: £117,000). Administrative expenses decreased over the period to £691,000 (H1 2011: £992,000). As a result, the total loss per share, basic and diluted, was 1.3 pence per share (H1 2011: 4.3 pence).
Cash used in operations during the period amounted to £605,000 (H1 2011: £377,000). Total capital and reserves attributable to equity shareholders of Astar at the period end were £3,655,000 (H1 2011: £3,013,000).
After the period end, in August, the Group raised £222,000 (net proceeds £212,000) which has strengthened Astar's financial position.
Outlook
Astar delivers essential aggregates to the Vancouver and Lower Mainland region in British Columbia which continues to enjoy steady market conditions. We continue to increase market share and current market conditions are expected to create opportunities for Astar.
The Board remains positive that the Group will continue its progress during the second half of the year. The Board is preparing Astar for the next phase of its development and growth. We will continue to explore sectors and routes to market where historically we have not traded and continue to seek additional growth opportunities.
The Board wishes to thank our shareholders for their continued support for Astar.
Lynda Chase-Gardener
Executive Chairman
Astar Minerals Plc (formerly Pan Pacific Aggregates Plc)
UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Six months ended 30 June 2012
Unaudited | Unaudited | Audited | ||
Six months ended | Six months ended | Year ended | ||
30 June 2012 | 30 June 2011 | 31 December 2011 | ||
Note | £'000 | £'000 | £'000 | |
Revenue | 374 | 526 | 1,012 | |
Cost of sales | (370) | (433) | (975) | |
Gross profit
| 4
| 93
| 37
| |
Impairment charge | - | - | - | |
Other administrative expenses | (691) | (992) | (1,529) | |
Loss from operations | (687) | (899) | (1,492) | |
Financial expense | (84) | (117) | (205) | |
Cost of issuance of shares and warrants | - | - | (319) | |
Financial income | - | - | 1 | |
Loss before taxation | (771) | (1,016) | (2,015) | |
Taxation | - | - | - | |
Loss for the period/year attributable to the equity holders of the parent | (771) | (1,016) | (2,015) | |
Other comprehensive income | ||||
Exchange differences arising on the translation of foreign subsidiaries |
(11) |
(6) | 78 | |
Total comprehensive loss attributable to: | ||||
Equity holders of the parent | (782) | (1,022) | (1,937) | |
Loss per ordinary share | ||||
Basic and diluted (pence) | 4 | (1.3) | (4.3) | (6.0) |
UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 30 June 2012
Unaudited | Unaudited | Audited | ||
At 30 June | At 30 June | At 31 December | ||
2012 | 2011 | 2011 | ||
Note | £'000 | £'000 | £'000 | |
Assets | ||||
Non-current assets | ||||
Intangible assets | 1,687 | 1,985 | 1,687 | |
Property, plant and equipment | 3,807 | 3,971 | 3,915 | |
Total non-current assets | 5,494 | 5,956 | 5,602 | |
Current assets | ||||
Inventories | 211 | 230 | 183 | |
Receivables | 351 | 284 | 201 | |
Cash and cash equivalents | 147 | 39 | 270 | |
Total current assets | 709 | 553 | 654 | |
Total assets | 6,203 | 6,509 | 6,256 | |
Liabilities | ||||
Current liabilities | ||||
Trade payables | 570 | 1,169 | 466 | |
Mortgage and other loans | 1,126 | 1,340 | 1,218 | |
1,696 | 2,509 | 1,684 | ||
Non-current liabilities | ||||
Other loans | 135 | 232 | 179 | |
Deferred tax | 717 | 755 | 733 | |
852 | 987 | 912 | ||
Total liabilities | 2,548 | 3,496 | 2,596 | |
Total net assets | 3,655 | 3,013 | 3,660 | |
Capital and reserves attributable to equity holders of the company | ||||
Share capital | 3 | 3,939 | 2,374 | 3,905 |
Share premium account | 3 | 12,528 | 11,949 | 11,949 |
Foreign exchange reserve | (549) | (622) | (538) | |
Reserve for options granted | 172 | 174 | 172 | |
Reserve for warrants granted | 419 | 224 | 254 | |
Retained deficit | (12,854) | (11,086) | (12,083) | |
3,655 | 3,013 | 3,659 | ||
Non-controlling interest | - | - | 1 | |
Total equity | 3,655 | 3,013 | 3,660 |
The financial statements were approved by the Board of Directors and authorised for issue on 26 September 2012
Lynda Chase-Gardener, Executive Chairman
UNAUDITED CONSOLIDATED STATEMENT OF CASH FLOWS
Six months ended 30 June 2012
Unaudited | Unaudited | Audited |
| ||
Six months ended | Six months ended | Year ended |
| ||
30 June 2012 | 30 June 2011 | 31 December 2011 |
| ||
Operating activities | £'000
| £'000
| £'000
|
| |
Loss before taxation | (771) | (1,016) | (2,015) |
| |
Adjustments for |
| ||||
Depreciation and amortisation | 152 | 152 | 296 |
| |
Finance income | - | - | (1) |
| |
Finance expense
| 84 | 117 | 205 |
| |
Loss on disposal of equipment | 4 | - | - |
| |
Share issuance expense | - | - | 319 |
| |
Share based payment expense | - | - | 30 |
| |
240 | 269 | 849 |
| ||
Cash outflows from operating activities before changes in working capital and provisions | (531) | (747) | (1,166) |
| |
(Increase)/decrease in trade and other receivables | (150) | 20 | 103 |
| |
(Increase) / decrease in inventories | (28) | (33) | 14 |
| |
Increase in trade and other payables | 104
| 383 | 32 |
| |
(74) | 370 | 149 |
| ||
Cash outflows from operating activities | (605) | (377) | (1,017) |
| |
| |||||
Investing activities |
| ||||
Finance income | - | - | 1 |
| |
Disposal of property, plant and equipment | 54 | - | - |
| |
Purchase of property, plant and equipment | (75) | (26) | (137) |
| |
Purchase of mineral properties | - | (32) | - |
| |
Cash outflows from investing activities | (21) | (58) | (136) |
| |
| |||||
Financing activities |
| ||||
Finance expense | (84) | (117) | (205) |
| |
Issue of ordinary share capital | 785 | - | 1,212 |
| |
Share issue costs | (62) | - | - |
| |
(Decrease)/Increase in mortgage and loans loans | (92) | 131 | - |
| |
(Decrease)/increase in other loans | (44) | (65) | (109) |
| |
Cash flows from financing activities | 503 | (51) | 898 |
| |
| |||||
(Decrease) in cash | (123) | (486) | (255) |
| |
Cash and equivalents at beginning of the period / year | 270 | 525 | 525 |
| |
Cash and equivalents at end of the period / year | 147 | 39 | 270 |
| |
NOTES TO THE FINANCIAL INFORMATION
1. Accounting policies
Basis of preparation
The condensed interim financial information has been prepared using policies based on International Financial Reporting Standards (IFRS and IFRIC interpretations) issued by the International Accounting Standards Board ("IASB") as adopted for use in the EU. The condensed interim financial information has been prepared using the accounting policies which will be applied in the Group's statutory financial information for the year ended 31 December 2012.
The condensed interim financial information for the period 1 January 2012 to 30 June 2012 is neither audited nor reviewed by the auditors of Astar Minerals Plc. In the opinion of the Directors, the condensed interim financial information for the period presents fairly the financial position, and the results from operations and cash flows for the period are in conformity with generally accepted accounting principles consistently applied. The financial statements incorporate comparative figures for the interim period 1 January 2011 to 30 June 2011 and the audited financial year to 31 December 2011.
The financial information contained in this interim report does not constitute statutory accounts as defined by section 435 of the Companies Act 2006. The comparatives for the full year ended 31 December 2011 are not the Company's full statutory accounts for that year. A copy of the statutory accounts for that year has been delivered to the Registrar of Companies. The auditors' report on those accounts was unqualified. The auditors' report did not contain a statement under section 498(2)-(3) of the Companies Act 2006.
2. AIM Compliance Committee
In accordance with AIM Rule 31 the Company is required to have in place sufficient procedures, resources and controls to enable its compliance with the AIM Rules; seek advice from its nominated adviser ("Nomad") regarding its compliance with the AIM Rules whenever appropriate and take that advice into account; provide the Company's Nomad with any information it requests in order for the Nomad to carry out its responsibilities under the AIM Rules for Companies and the AIM Rules for Nominated Advisers; ensure that each of the Company's directors accepts full responsibility, collectively and individually, for compliance with the AIM Rules; and ensure that each director discloses without delay all information which the Company needs in order to comply with AIM Rule 17 (Disclosure of Miscellaneous Information) insofar as that information is known to the director or could with reasonable diligence be ascertained by the director.
In order to ensure that these obligations are being discharged, the Board has established a committee of the Board (the "AIM Committee"), chaired by Euan McAlpine, and Dr Anton Schrafl a non-executive director of the Company.
Having reviewed relevant Board papers and met with the Company's Executive Board and the Nomad to ensure that such is the case, the AIM Committee is satisfied that the Company's obligations under AIM Rule 31 have been satisfied during the period under review.
3. Share capital
Allotted, called up andfully paid ordinary shares | Share | ||||
Company | Authorised | of £0.001 each | Premium | ||
Number | Number | £'000 | £'000 | ||
As at 1 January 2011 | 2,854,174,600 | 2,373,981,242 | 2,374 | 11,949 | |
Issue of warrants | - | - | - | - | |
Issue of shares | - | - | - | - | |
Issue costs | - | - | - | - | |
As at 30 June 2011 | 2,854,174,600 | 2,373,981,242 | 2,374 | 11,949 | |
Issue of warrants | - | - | - | - | |
Issue of shares | 1,530,555,550 | 1,530,555,550 | 1,531 | - | |
Issue costs | - | - | - | - | |
As at 31 December 2011 | 4,384,730,150 | 3,904,536,792 | 3,905 | 11,949 | |
Share consolidation | (4,340,882,848) | (3,865,491,544) | - | - | |
Issue of warrants | - | - | - | (165) | |
Issue of shares | 33,610,000 | 33,610,000 | 34 | 806 | |
Issue costs | - | - | - | (62) | |
As at 30 June 2012 | 77,457,302 | 72,655,248 | 3,939 | 12,528 | |
4. Loss per share
Basic earnings/(loss) per share is calculated on the loss after taxation for the period attributable to equity holders of the Company of £771,000 (2011: £1,016,000) and on 58,620,453 (2011: 23,739,812) ordinary shares, being the weighted average number in issue during the period. Due to the loss in the period the effect of the share options and warrants were considered anti-dilutive and hence no additional diluted loss per share information has been provided.
5. Post reporting date events
In August 2012, Quadling Quarry obtained a short term loan of £220,000 (CDN$350,000) at an interest rate of 12% per annum to 31 July, 2013 and at the rate of 24% per annum thereafter to the maturity date which is the loan due and payable date on 31 August, 2013.
6. Distribution of the Half Yearly Report
Copies of the Half Yearly Report will be available to the public from the Company website, www.AstarMinerals.com.