28 Sep 2009 12:01
Beacon Hill Resources plc / Ticker: BHR / Index: AIM / Sector: Mining
28 September 2009
Beacon Hill Resources plc
('Beacon Hill' or 'the Company' and its subsidiaries together 'the Group')
Interim Results
Beacon Hill Resources Plc, the AIM listed resource group, announces its interim results for the period ended 30 June 2009.
Overview
Acquisition of Tasmania Magnesite NL ('Tasmanian Magnesite') and associated fundraising of £1 million
Acquisition of Tasmanian Magnesite provides the Company with access to one of the largest magnesite assets in the world and exposure to the lucrative steel industry
Loss for the six months ended 30 June 2009 of £176,863 (2008: £953,432)
Cash at bank as at 30 June 2009 was £160,054
Beacon Hill Chairman Justin Lewis said, "This has been a period of restructuring for the Group, where we have focussed on recapitalising the business and identifying investments that we feel could generate value for shareholders going forward. In line with this, we are delighted to announce the acquisition of Tasmanian Magnesite. This acquisition will give Beacon Hill access to an advanced development project on one of the largest magnesite assets in the world and we look forward to progressing this into a working mine. Importantly, by default, we now have exposure to the steel industry as magnesia, processed from magnesite ore, is a key raw material in the manufacture of steel."
Full details of the Tasmanian Magnesite transaction can be found in the separate announcement released today and in the Company's Admission document.
Chairman's Statement
On behalf of the Board I am pleased to provide this interim report for the Company and its subsidiaries for the six months ended 30 June 2009.
Our primary objective during the period has been the identification and evaluation of mining opportunities for acquisition or investment following the disposal of our West African Projects in November 2008. In line with this, we announced earlier today that we have conditionally agreed to acquire the entire issued share capital of Tasmania Magnesite NL. It changes our focus and provides us with significant potential to accrue value going forward by implementing a defined development plan.
Financial Review
The Company has today announced the acquisition of Tasmanian Magnesite and an associated fundraising of £1 million before expenses. Further details of this are being sent to shareholders today.
During the period to 30 June 2009, Beacon Hill recorded a loss of £176,863 (2008: £953,432). During the period under review the Group has not had any trading activities, having disposed of its interests in West Africa towards the end of last year, and has been focussed on finalising this acquisition.
During the period, the Company placed 90 million new ordinary shares, raising £225,000 before costs.
Cash at bank as at 30 June 2009 was £160,054.
Outlook
The completion of the Tasmanian Magnesite acquisition will see the Group return to the development of value enhancing resources projects. The Group intends to develop a magnesite mine in North West Tasmania, Australia and commence the development of associated processing operations.
I would like to thank all my board colleagues for their support over the last six months and look forward to making further positive reports concerning the development of Tasmanian Magnesite.
Justin Lewis
Chairman
**ENDS**
| Justin Lewis | Chairman, Beacon Hill Resources Plc | +61 (0) 3 9629 9505 |
| William Vandyk | Astaire Securities Plc | +44 (0) 20 7448 4400 |
| Hugo de Salis | St Brides Media & Finance Ltd | +44 (0) 20 7236 1177 |
| Susie Callear | St Brides Media & Finance Ltd | +44 (0) 20 7236 1177 |
Consolidated Income Statement
For the period ended 30 June 2009
| Note | Unaudited period ended 30 June 2009 | Unaudited period ended 30 June 2008 | Audited year ended 31 December 2008 | |
| £ | £ | £ | ||
| Revenue - management fees | - | 5,617 | 28,772 | |
| Administrative expenses | (177,166) | (969,786) | (1,283,391) | |
| Operating Loss | (177,166) | (964,169) | (1,254,619) | |
| Finance income - bank interest | 303 | 10,737 | 13,502 | |
| Loss before taxation | (176,863) | (953,432) | (1,241,117) | |
| Tax expense | - | - | - | |
| Loss for the period from continuing operations | (176,863) | (953,432) | (1,241,117) | |
| Loss from discontinued operations | - | - | (485,905) | |
| Loss for the period attributable to equity holders of the parent entity | (176,863) | (953,432) | (1,727,022) | |
| Loss per share attributable to equity holders of the parent entity Basic and diluted | 2 | |||
| - from continuing operations | (0.105)p | (1.219)p | (1.428)p | |
| - from continuing and discontinued operations | (1.105)p | (1.219)p | (1.987)p |
Consolidated Statement of Comprehensive Income
For the period ended 30 June 2009
| Unaudited period ended 30 June 2009 | Unaudited period ended 30 June 2008 | Audited year ended 31 December 2008 | |
| £ | £ | £ | |
| Currency translation differences on overseas operations | 1,036 | 62,252 | 38,797 |
| Comprehensive income recognised directly in equity | 1,036 | 62,252 | 38,797 |
| Loss for the period | (176,863) | (953,432) | (1,727,022) |
| Total comprehensive loss recognised in the period attributable to equity holders of the parent entity | (175,827) | (891,180) | (1,688,225) |
Consolidated Statement of Changes in Equity
| Share capital | Share premium account | Merger reserve | Foreign exchange reserve | Warrant reserve | Retained earnings | Total Equity | ||||
| £ | £ | £ | £ | £ | £ | £ | ||||
| At 1 January 2008 | 550,000 | 969,851 | 839,346 | (53,765) | 250,000 | (1,911,749) | 643,683 | |||
| Loss for the year | - | - | - | - | - | (1,727,022) | (1,727,022) | |||
| Other comprehensive income: | ||||||||||
| Currency translation differences on overseas operations: | - | - | - | 38,797 | - | - | 38,797 | |||
| Total comprehensive income | - | - | - | 38,797 | - | (1,727,022) | (1,688,225) | |||
| Transaction with owners: | ||||||||||
| Issue of shares | 286,000 | 946,500 | - | - | 37,500 | - | 1,270,000 | |||
| Expenses of issue | - | (157,123) | - | - | - | - | (157,123) | |||
| Transfer on expiry of warrants | - | - | - | - | (250,000) | 250,000 | - | |||
| 286,000 | 789,377 | - | - | (212,500) | 250,000 | 1,112,877 | ||||
| At 1 January 2009 | 836,000 | 1,759,228 | 839,346 | (14,968) | 37,500 | (3,388,771) | 68,335 | |||
| Loss for the period | - | - | - | - | - | (176,863) | (176,863) | |||
| Other comprehensive income: | ||||||||||
| Currency translation differences on overseas operations: | - | - | - | 1,036 | - | - | 1,036 | |||
| Total comprehensive income | - | - | - | 1,036 | - | (176,863) | 175,827 | |||
| Transaction with owners: | ||||||||||
| Issue of shares | 9,000 | 216,000 | - | - | - | 225,000 | ||||
| Expenses of issue | - | (17,500) | - | - | - | - | (17,500) | |||
| 9,000 | 198,500 | - | - | - | - | 207,500 | ||||
| At 30 June 2009 | 845,000 | 1,957,728 | 839,346 | (13,952) | 37,500 | (3,565,634) | 100,008 | |||
Consolidated Balance Sheet
As at 30 June 2009
| Unaudited 30 June 2009 | Unaudited 30 June 2008 | Audited 31 December 2008 | ||
| £ | £ | £ | ||
| Assets | ||||
| Non-current assets | ||||
| Intangible assets | - | 488,997 | - | |
| Property, plant and equipment | 9,570 | 79,947 | 25,706 | |
| 9,570 | 568,944 | 25,706 | ||
| Current assets | ||||
| Trade and other receivables | 3,573 | 61,578 | 10,210 | |
| Cash and cash equivalents | 160,054 | 339,119 | 107,041 | |
| 163,627 | 400,697 | 117,251 | ||
| Total assets | 173,197 | 969,641 | 142,957 | |
| Liabilities | ||||
| Current liabilities | ||||
| Trade and other payables | (73,189) | (238,244) | (74,622) | |
| Total liabilities | (73,189) | (238,244) | (74,622) | |
| Net assets | 100,008 | 731,397 | 68,335 | |
| Capital and reserves | ||||
| Called up share capital | 845,000 | 830,000 | 836,000 | |
| Share premium | 1,957,728 | 1,668,748 | 1,759,228 | |
| Merger reserve | 839,346 | 839,346 | 839,346 | |
| Foreign exchange reserve | (13,932) | 8,484 | (14,968) | |
| Warrant reserve | 37,500 | 250,000 | 37,500 | |
| Retained earnings | (3,565,634) | (2,865,181) | (3,388,771) | |
| Total equity | 100,008 | 731,397 | 68,335 | |
Consolidated Cash Flow Statement
For the period ended 30 June 2009
| Unaudited period ended 30 June 2009 | Unaudited period ended 30 June 2008 | Audited year ended 31 December 2008 | ||
| £ | £ | £ | ||
| Net cash flow from operating activities | ||||
| Loss for the period | (176,863) | (953,432) | (1,727,022) | |
| Depreciation and amortisation | 905 | 8,542 | 7,295 | |
| Loss on disposal of subsidiary undertakings | - | - | 474,961 | |
| Loss on disposal of fixed assets | 3,324 | - | 18,724 | |
| Impairment of goodwill | - | 26,555 | - | |
| Capitalised exploration expenses | - | (20,826) | - | |
| Interest received | (303) | (10,737) | (13,502) | |
| Foreign exchange gains/(losses) | (774) | 33,921 | 24,539 | |
| Movement in working capital: | ||||
| - trade and other receivables | 6,637 | (40,554) | 10,814 | |
| - trade and other payables | (1,433) | 91,572 | (72,050) | |
| Cash flow from operations | (168,507) | (864,959) | (1,276,241) | |
| Cash flow from investing activities | ||||
| Purchase of property, plant and equipment | - | (1,293) | - | |
| Disposal of property, plant and equipment | 13,717 | - | 18,541 | |
| Proceeds from disposal of subsidiary undertakings | - | - | 22,625 | |
| Interest received | 303 | 10,737 | 13,502 | |
| Net cash flow from investing activities | 14,020 | 9,444 | 54,668 | |
| Cash flow from financing activities | ||||
| Issue of shares | 225,000 | 1,120,000 | 1,270,000 | |
| Share issue costs | (17,500) | (141,103) | (157,123) | |
| Net cash flow from financing activities | 207,500 | 978,897 | 1,112,877 | |
| Net increase/(decrease) in cash and cash equivalents | 53,013 | 123,382 | (108,696) | |
| Cash and cash equivalents at beginning of period | 107,041 | 215,737 | 215,737 | |
| Cash and cash equivalents at end of period | 160,054 | 339,119 | 107,041 | |
Notes to the Interim Results
| 1. | Accounting Policies |
Basis of accounting
The interim financial information for the six months ended 30 June 2009 and that for the equivalent period in 2008 has been neither audited nor reviewed by the Group's auditors. The comparatives for the full year ended 31 December 2008 are not the Group'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, did not include references to any matters to which the auditors drew attention by way of emphasis without qualifying their report and did not contain a statement under section 237(2)-(3) of the Companies Act 1985.
The interim financial information has been prepared in accordance with the accounting policies and presentation required by International Financial Reporting Standards, incorporating International Accounting Standards and Interpretations (collectively 'IFRS') as endorsed by the European Union.
Except as described below, the interim report is presented and prepared in a form consistent with that which has been adopted in the Group's annual accounts having regard to the accounting standards applicable to such accounts.
The following new standards and amendments to standards are mandatory for the first time for the financial year beginning 1 January 2009:
IAS 1 (revised) 'Presentation of Financial Statements' prohibits the presentation of items of income and expense (that is 'non-owner changes in equity') in the statement of changes in equity, requiring 'non-owner changes in equity' to be presented separately from owner changes in equity. All 'non-owner changes in equity' are required to be shown in a performance statement. The Group has elected to present two statements: an income statement and a statement of comprehensive income. These interim unaudited statements have been prepared under the revised presentation requirements for primary statements and the comparative figures have been restated accordingly.
IRFS 8 'Operating Segments' replaces IAS 4 'Segment Reporting'. Adoption of IFRS 8 has resulted in no changes in the Group's identification of reporting segments.
| 2. | Loss per share |
The calculation of loss per ordinary share is based on a loss of £176,863 (2008: £953,432) and on 167,000,000 (2008: 78,230,769) ordinary shares, being the weighted average number of ordinary shares in issue during the period.
| 3. | Dividends |
The directors do not recommend the payment of a dividend.