1 Sep 2015 07:03
DiamondCorp plc
JSE share code: DMC
AIM share code: DCP
ISIN: GB00B183ZC46
(Incorporated in England and Wales)
(Registration number 05400982)
(SA company registration number 2007/031444/10)
('DiamondCorp' or 'the Company' or 'the Group')
Interim Results (unaudited) for the six month period
ended 30 June 2015
DiamondCorp plc, the Southern Africa focussed diamond mine development and exploration company, releases its unaudited interim results for the six month period ended 30 June 2015.
HIGHLIGHTS
· After adjustments for a weaker Rand exchange rate, the pre-tax loss for the period was £3.159 million compared with £2.748 million in the same period in 2014.
· Continued close attention to cost control saw administrative expenditure for the period reduced to £0.671 million (£0.869 million in 2014).
· Total assets at 30 June were £35.100 million (£32.413 million in 2014) and liabilities were £28.242 million (£25.415 million in 2014).
· Cash at 30 June was £1.943 million. After the period end, a further £2.089 million was raised from a heavily oversubscribed Open Offer.
· Processing of kimberlite from development continues to return encouraging results in terms of diamond size frequency and quality.
· As has been reported, for safety reasons, underground tunnel development at the Lace mine is proceeding slower than planned in fractured ground close to old workings. Some zones, particularly on the eastern side of the pipe have been found to contain kimberlite of a quite friable nature. This has reduced the rate of advance and as a result of DiamondCorp's insistence on installing additional support, particularly at tunnel cross cuts in the kimberlite, will continue to impact on the development timetable. These ground conditions will be a positive for fragmentation and caving when mining commences.
· Additional anti-rollback idlers for the underground conveyor belt system to meet new Department of Mineral Resources' requirements have started to arrive on site and installation has commenced. The majority of the installation is expected to be completed during September ahead of the ramp up in commercial production from the Upper K4 mining block during Q4 2015.
· The Company's first diamond sale is now scheduled for October, when tunnel and initial slot drive tonnage will have provided a sufficiently representative parcel of kimberlite diamonds.
· The result of initial diamond sales along with controlled bulk test results from the kimberlite tunnel development will provide the required information for release of the Company's upgraded resource statement.
· Detailed studies progressed on options for introducing waste sorting systems in the processing plant to optimise mining of the Lace kimberlites in the longer-term with initial encouraging results.
1 September 2015
CONSOLIDATED Income Statement | ||
Six months ended30 June 2015 | Six months ended30 June 2014 | |
(Unaudited) | (Unaudited) | |
£ | £ | |
Other income | 1 700 | (129 303) |
Operating expenses | (672 480) | (739 963) |
Operating loss | (670 780) | (869 266) |
Investment revenues | 8 914 | 21 988 |
Fair value adjustments | (2 497 523) | (1 585 592) |
Finance costs | - | (316 102) |
Loss before tax | (3 159 389) | (2 748 972) |
Tax | - | - |
Loss for the period | (3 159 389) | (2 748 972) |
Attributable to: | ||
Equity holders of the parent | (3 098 379) | (2 676 238) |
Non-controlling interest | (61 010) | (72 734) |
(3 159 389) | (2 748 972) | |
Basic and diluted loss per share (pence) (Note 2) | (0.98) | (0.91) |
CONSOLIDATED Statement of comprehensive income | ||
Six months ended 30 June 2015 | Six months ended 30 June 2014 | |
(Unaudited) | (Unaudited) | |
£ | £ | |
Net loss | (3 159 389) | (2 748 972) |
Other comprehensive loss: | ||
Items that may be reclassified to profit and loss: | ||
Exchange differences on translating foreign operations | (396 738) | (108 048) |
Total comprehensive loss | (3 556 127) | (2 857 020) |
Total comprehensive loss attributable to: | ||
Equity holders of the parent | (3 348 102) | (2 371 327) |
Non-controlling interest | (208 026) | (485 693) |
(3 556 127) | (2 857 020) | |
CONSOLIDATED Balance Sheet | ||
Six months ended30 June 2015 | Year ended31 December 2014 | |
(Unaudited) | (Audited) | |
£ | £ | |
Assets | ||
Non-Current Assets | ||
Property, plant and equipment | 27 569 428 | 23 993 549 |
Goodwill | 4 606 026 | 4 606 026 |
Rehabilitation trust fund | 94 864 | 101 199 |
Restricted cash | 65 836 | 70 232 |
32 336 154 | 28 771 006 | |
Current assets | ||
Inventories | 450 552 | 455 684 |
Current tax receivable | 5 989 | 6 651 |
Other receivables | 363 723 | 648 810 |
Cash and cash equivalents | 1 943 862 | 2 531 420 |
2 764 126 | 3 642 565 | |
TOTAL ASSETS | 35 100 280 | 32 413 571 |
Equity and Liabilities | ||
Equity | ||
Equity Attributable to owners of the parent | ||
Share capital | 40 656 614 | 37 161 666 |
Reserves | (2 296 156) | (1 967 241) |
Accumulated loss | (29 147 301) | (26 048 922) |
9 213 157 | 9 145 503 | |
Non-Controlling interest | (2 355 388) | (2 147 363) |
Total Equity | 6 857 769 | 6 998 141 |
Liabilities | ||
Non-Current Liabilities | ||
Other financial liabilities | (18 114 717) | (17 972 843) |
Provisions | (545 342) | (581 756) |
(18 660 059) | (18 554 599) | |
Current Liabilities | ||
Compound instruments - liabilities | (2 902 061) | (2 811 742) |
Compound instruments - derivatives | (5 990 165) | (3 730 434) |
Trade and other payables | (690 226) | (318 656) |
(9 582 452) | (6 860 832) | |
Total Liabilities | (28 242 511) | (25 415 431) |
Total Equity and Liabilities | (35 100 280) | (32 413 571) |
STATEMENT OF CHANGES IN EQUITY (UNAUDITED)
Total Share Capital | Total Reserves | Retained losses | Total attributable to owner of the parent | Non controlling interest | Total | ||||||
£ | £ | £ | £ | £ | £ | ||||||
Balance at 1 January 2014 | 35 190 544 | (1 807 236) | (22 907 307) | 10 476 001 | (1 946 868) | 8 529 133 | |||||
Loss for financial year | - | - | (2 676 238) | (2 676 238) | (72 734) | (2 748 972) | |||||
Other comprehensive income | - | 606 968 | - | 606 968 | (715 016) | (108 048) | |||||
Total comprehensive income | - | 606 968 | (2 676 238) | (2 069 270) | (787 750) | (2 857 020) | |||||
Issue of share capital | 1 971 123 | - | - | 1 971 123 | 1 971 123 | ||||||
Balance at 30 June 2014 (unaudited) | 37 161 667 | (1 200 268) | (25 583 545) | 10 377 854 | (2 734 618) | 7 643 236 | |||||
Loss for financial year | - | - | (465 377) | (465 377) | (37 325) | (502 702) | |||||
Other comprehensive income | - | (760 064) | - | (760 064) | 624 580 | (135 484) | |||||
Total comprehensive income | - | (760 064) | (465 377) | (1 225 441) | 587 255 | (638 186) | |||||
Issue of share capital | - | - | - | - | - | - | |||||
Fair value adjustment of reserve | - | (12 808) | - | (12 808) | - | (12 808) | |||||
Value attributed for equity settled share based payments | - | 5 899 | - | 5 899 | - | 5 899 | |||||
Balance at 31 December 2014 (audited) | 37 161 667 | (1 967 241) | (26 048 922) | 9 145 504 | (2 147 363) | 6 998 141 | |||||
Loss for financial year | - | - | (3 098 379) | (3 098 379) | (61 010) | (3 159 389) | |||||
Other comprehensive income | - | (249 723) | - | (249 723) | (147 015) | (396 738) | |||||
Total comprehensive income | - | (249 723) | (3 098 379) | (3 348 102) | (208 026) | (3 556 127) | |||||
Warrants issued | 79 192 | (79 192) | - | - | - | - | |||||
Issue of share capital | 3 415 755 | - | - | 3 415 755 | - | 3 415 755 | |||||
Value attributed for equity settled share based payments | - | - | - | - | - | - | |||||
Balance at 30 June 2015 (unaudited) | 40 656 614 | (2 296 156) | (29 147 301) | 9 213 158 | (2 355 389) | 6 857 769 | |||||
CONSOLIDATED Cash Flow Statement | ||
Six months ended 30 June 2015 | Six months ended 30 June 2014 | |
(Unaudited) | (Unaudited) | |
£ | £ | |
Cash flows from operating activities | ||
Cash utilised in operations | 11 599 | (1 110 198) |
Finance cost | - | (316 102) |
Tax refund received | 662 | - |
Net cash used in operating activities | 12 261 | (1 426 300) |
Cash flows from investing activities | ||
Purchase of property, plant and equipment | (3 934 963) | (3 038 223) |
Interest income | 8 914 | 21 998 |
Net cash used in investing activities | (3 926 049) | (3 016 235) |
Cash flows from financing activities | ||
Proceeds on share issue | 3 415 755 | 1 971 123 |
Proceeds from other financial liabilities | - | 7 375 446 |
Net cash from financing activities | 3 415 755 | 9 346 569 |
Total cash movement for the year | (498 033) | 4 904 034 |
Cash at the beginning of the year | 2 531 420 | 2 220 130 |
Effect of exchange rate movement on cash balances | (89 525) | 191 149 |
Total cash at end of the year | 1 943 862 | 7 315 313 |
NOTES TO THE FINANCIAL STATEMENTS
Six months ended 30 June 2014
1. ACCOUNTING POLICIES
These interim financial statements have been prepared using accounting policies consistent with International Financial Reporting Standards (IFRSs). The same accounting policies, presentation and methods of computation are followed in the condensed interim financial information as applied in the Group's latest annual audited financial statements. The financial figures included in this half-yearly report have been computed in accordance with IFRSs applicable to interim periods.
These interim financial statements were approved by the Board on 28 August 2015 and do not constitute statutory financial statements within the meaning of Section 435 of the Companies Act 2006. The results for the year ended 31 December 2014 have been extracted from the statutory financial statements of DiamondCorp plc.
A copy of the statutory accounts for the year ended 31 December 2014 has been delivered to the Registrar of Companies. The auditors' report on those accounts was not qualified and did not contain statements under Section 498 (2) or (3) of the Companies Act 2006.
These interim financial statements have been prepared using the accounting policies set out in the Group's 2014 statutory accounts.
Results for the six-month periods ended 30 June 2015 and 30 June 2014 have not been audited.
The comparative information presented in the income statement has been prepared for the period 1 January 2014 - 30 June 2014. This has been performed in order to comply with the AIM rules and is presented solely for this purpose.
2. LOSS PER SHARE
IAS 33 "Earnings per share" requires presentation of diluted earnings per share when a company could be called upon to issue shares that would decrease net profit or increase net loss per share. For a loss-making company with outstanding share options, net loss per share would only be decreased by the exercise of out-of-money options. Since it seems inappropriate to assume that option holders would exercise out-of-money options, no adjustment has been made to basic loss per share for out-of-money share options.
The calculation of basic and diluted loss per ordinary share is based on the loss attributable to equity holders of the parent of £3,098,379 for the six months ended 30 June 2015 (30 June 2014: £2,676,238) and on 321,462,540 ordinary shares (30 June 2014: 294,360,041) being the weighted-average number of ordinary shares in issue.
The Group presents an alternative measure of loss per share after excluding all capital gains and losses from the loss attributable to ordinary shareholders ("Headline earnings / (loss)"). Due to there being no adjustments headline loss per share and basic loss per share is the same.
30 June 2015 | 30 June 2014 | |
Basic and diluted loss per share (pence) | (0.98) | (0.91) |
Basic and diluted loss per share (Rand) | (R0.1882) | (R0.6145) |
3. SHARE CAPITAL
DiamondCorp plc does not have an authorised share capital, in line with the provisions of the UK Companies Act 2006. The Directors' authority to issue and allot shares in the company is set each year by Company's shareholders at the Annual General Meeting. The level of disapplication in respect of pre-emption authority is determined by the Company's Nominated Adviser and is based on UK corporate governance guidelines for AIM companies.
In April 2014, 41,526,000 ordinary shares of 0.5 pence each were issued to current and new shareholders of the Company, the cost associated with issuance of these shares has been charged to the share premium account.
In May 2015, 5,000,000 ordinary shares of 0.1 pence were issued to a warrant holder to exercise warrants over 5,000,000 ordinary shares at an exercise price of 0.9 pence
In June 2015, 31,837,000 ordinary shares of 0.1 pence were issued to current and new shareholders of the Company, the cost associated with the issuance of these shares has been charged to the share premium account.
Authorised | 30 June 2015 | 30 June 2014 |
Ordinary shares | 318 365 478 | 276 839 478 |
Issue of ordinary shares | 36 837 000 | 41 526 000 |
355 202 478 | 318 365 478 | |
Reconciliation of number of shares issued after | ||
reorganisation: | ||
Ordinary shares of 0.1 pence each | 355 202 478 | 318 365 478 |
Ordinary shares of 2.9 pence each | 276 839 478 | 276 839 478 |
632 041 956 | 595 204 478 | |
Issued | ||
Ordinary shares of 0.1 pence each | 355 203 | 318 366 |
Deferred ordinary shares of 2.9 pence each | 8 028 344 | 8 028 344 |
Share premium | 32 273 067 | 28 814 957 |
40 656 614 | 37 161 667 |
Contact details:
DiamondCorp plc
Paul Loudon, CEO
Tel: +27 56 216 1300
Euan Worthington, Chairman
Tel: +44 7753 862097
UK Broker & Nomad
Panmure Gordon (UK) Limited
Dominic Morley/Adam James
Tel: +44 20 7886 2500
JSE Designated Advisor
Sasfin Capital (a division of Sasfin Bank Limited)Megan Young
Tel: +27 11 445 8068
SA Corporate Advisor
Qinisele Resources Proprietary Limited
Dennis Tucker/Andrew Brady
Tel: +27 11 883 6358