DCP.L Regulatory News (DCP)

6 Sep 2007 07:01

Diamondcorp Plc06 September 2007 DIAMONDCORP PLC Consolidated Interim Results For the six months ended 30 June 2007 Interim Results Announcement for the six months ended 30 June 2007 Highlights • Lace mine plant construction was completed and commissioning commenced in the last week of the period. Diamond production has steadily increased during July and August. • Refurbishment of the Lace shaft continued during the period. • Preparations for a listing on the JSE commenced, and in July Investec Bank was appointed sponsor. • Management pursued its strategy of increasing growth through acquisition, and heads of terms were negotiated to acquire Sonop Diamond Mining (Pty) Limited, South Africa's largest private diamond mining company. During August, a formal option agreement to acquire Sonop for 7.5 million fully paid ordinary shares of 3p and US$45 million cash was signed. • As a consequence of signing the option, which will constitute a reverse when exercised, DiamondCorp shares were suspended from trading on the AIM Market and PLUS Markets • The group loss was £1,320,220 for the six months, compared with £257,022 for the same period last year. The loss included non-cash expenses of £535,104 and IPO expenses of £109,748. • Total liabilities reduced from £4,253,125 to £163,722 following conversion of loan notes to equity. • Net assets increased from £9,018,355 to £13,748,320. Paul Loudon, managing director and CEO of DiamondCorp plc, commenting on theresults said: "We are pleased to have strengthened our balance sheetsignificantly during the period, and look forward to reporting initialproduction income from our Lace diamond mine in South Africa in the nextaccounting period. Further, the Sonop option we announced post-reporting period is in keeping withthe strategy to expand our diamond production operations in South Africa, and,if exercised, will immediately transform DiamondCorp into one of the largestAIM-listed diamond producers." For further information, please contact: Paul Loudon, CEODiamondCorp plc+44 20 7256 2651 Joe Nally/Simon SouthwoodCenkos Securities plc+44 20 7397 8900 Robert Smith/Cindy StoutjesdykInvestec Bank Limited+27 11 286 7662 Introduction We have been instructed by the company to review the financial information forthe six months ended 30 June 2007 which comprises the income statement, thebalance sheet, the cash flow statement, the statement of changes in equity andrelated notes 1 to 4. We have read the other information contained in theinterim report and considered whether it contains any apparent misstatements ormaterial inconsistencies with the financial information. This report is made solely to the company, in accordance with Bulletin 1999/4issued by the Auditing Practices Board. Our work has been undertaken so that wemight state to the company those matters we are required to state to them in anindependent review report and for no other purpose. To the fullest extentpermitted by law, we do not accept or assume responsibility to anyone other thanthe company, for our review work, for this report, or for the conclusions wehave formed. Directors' responsibilities The interim report, including the financial information contained therein, isthe responsibility of, and has been approved by, the directors. The directorsare also responsible for ensuring that the accounting policies and presentationapplied to the interim figures are consistent with those applied in preparingthe preceding annual accounts except where any changes, and the reasons forthem, are disclosed. Review work performed We conducted our review in accordance with the guidance contained in Bulletin1999/4 issued by the Auditing Practices Board for use in the United Kingdom. Areview consists principally of making enquiries of group management and applyinganalytical procedures to the financial information and underlying financial dataand, based thereon, assessing whether the accounting policies and presentationhave been consistently applied unless otherwise disclosed. A review excludesaudit procedures such as tests of controls and verification of assets,liabilities and transactions. It is substantially less in scope than an auditperformed in accordance with International Standards on Auditing (UK andIreland) and therefore provides a lower level of assurance than an audit.Accordingly, we do not express an audit opinion on the financial information. Review conclusion On the basis of our review we are not aware of any material modifications thatshould be made to the financial information as presented for the six monthsended 30 June 2007. Deloitte & Touche LLPChartered AccountantsCambridge, United Kingdom5 September 2007 Note Six months Six months ended ended 30 June 30 June 2007 2006 £ £ Administrative expenses (1,320,220) (257,022) OPERATING LOSS 3 (1,320,220) (257,022)Investment revenues - interest on bank deposits 68,300 2,004 LOSS BEFORE TAX (1,251,920) (255,018)Tax - - LOSS FOR THE FINANCIAL PERIOD (1,251,920) (255,018) ATTRIBUTABLE TO THE EQUITY HOLDERS OF THE PARENT (1,251,920) (255,018) LOSS PER SHARE 2 £0.038 £0.015 All of the activities of the Group are classed as continuing. STATEMENT OF CHANGES IN EQUITY Six months Six months ended ended 30 June 30 June 2007 2006 £ £ Opening balance 9,018,355 449,972 Translation reserve (183,668) - Total net loss recognised directly in equity (183,668) - Loss for financial period (1,251,921) (255,018) Total recognised expense for the period (1,435,589) (255,018) New equity share capital subscribed 280,500 270,000Premium on new equity share capital subscribed 5,246,536 3,605,833Value attributed to warrants granted 273,148 641,667Credit to equity for equity-settled share based payments 365,370 -Issuance of loan notes - 2,002,800 Closing balance 13,748,320 6,715,254 30 June 31 December 2007 2006 £ £ NON-CURRENT ASSETSGoodwill 4,606,026 4,606,026Other intangible assets 771,392 1,110,530Property, plant and equipment 4,615,758 3,421,081 9,993,176 9,137,637 CURRENT ASSETSInventories 1,061,297 1,052,000Other receivables 137,632 259,754Cash and cash equivalents 2,719,937 2,822,089 3,918,866 4,133,843 TOTAL ASSETS 13,912,042 13,271,480 CURRENT LIABILITIESConvertible Loan Notes - (3,666,000)Other payables (163,722) (587,125) TOTAL LIABILITIES (163,722) (4,253,125) NET ASSETS 13,748,320 9,018,355 EQUITYShare capital 1,022,612 742,112Share premium account 13,780,631 8,534,095Translation reserve (183,668) -Warrant reserve 914,814 641,667Stock option reserve 365,370 -Retained losses (2,151,439) (899,519) EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT 13,748,320 9,018,355 Six months Six months ended ended 30 June 30 June 2007 2006 £ £ Operating loss (1,320,220) (257,022)Depreciation 97,884 850Other non cash movements 71,850 -Share options 365,370 -Decrease/(increase) in receivables 122,122 (80,617)(Decrease)/increase in payables (423,403) 88,501Increase in inventories (35,851) (1,052,000) NET CASH USED IN OPERATING ACTIVITIES (1,122,248) (1,300,288) INVESTING ACTIVITIESPurchase of property, plant and equipment and other intangibles (1,110,538) (413,963)Interest received 68,300 2,004 NET CASH USED IN INVESTING ACTIVITIES (1,042,238) (411,959) FINANCING ACTIVITIESProceeds on issue of convertible loan notes - 1,902,800Proceeds on exercise of warrants 29,999 -Proceeds on issue of ordinary shares 2,032,335 - NET CASH FROM FINANCING ACTIVITIES 2,062,334 1,902,800 NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS (102,152) 190,553 CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 2,822,089 73,923 CASH AND CASH EQUIVALENTS AT END OF PERIOD 2,719,937 264,476 1. ACCOUNTING POLICIES These interim financial statements were approved by the Board on 3 September2007 and do not constitute statutory financial statements within the meaning ofSection 240 of the Companies Act 1985. A copy of the statutory accounts for theperiod ended 31 December 2006 has been delivered to the Registrar of Companies.The auditors' report on those accounts was not qualified and did not containstatements under Section 237(2) or (3) of the Companies Act 1985. These interim financial statements have been prepared using the accountingpolicies set out in the Group's 2006 statutory accounts and also take intoaccount those standards which will be effective at 31 December 2007. There isno financial impact as a result of any new standards issued. The results for the six month period ended 30 June 2007 and the comparative sixmonth period ended 30 June 2006 have not been audited. The comparative information presented in the income statement has been preparedbased on the period 1 January 2006 to 30 June 2006. This has been performed inorder to comply with the AIM rules and is presented solely for this purpose. Copies of the interim results for the six months ended 30 June 2007 are beingsent to all shareholders. A copy can also be found on the Company's website atwww.diamondcorp.plc.uk 2. LOSS PER SHARE IAS requires presentation of diluted earnings per share when a company could becalled upon to issue shares that would decrease net profit or increase net lossper share. For a loss making company with outstanding share options, net lossper share would only be increased by the exercise of out-of-money options. Sinceit seems inappropriate to assume that option holders would exercise out-of-moneyoptions, no adjustment has been made to diluted loss per share for out-of-moneyshare options. The calculation of basic and diluted loss per ordinary share is based on theloss of £1,251,920 for the six months ended 30 June 2007 (30 June 2006:£255,018) and on 32,478,739 ordinary shares (30 June 2006: 17,250,200) being theweighted average number of ordinary shares in issue. 3. Operating loss Six months Six months ended ended 30 June 30 June 2007 2006 £ £ Operating loss is after chargingIPO costs 109,748 - 4. SHARE CAPITAL 30 Jun 31 Dec 2007 2006 £ £Authorised share capital166,666,666 ordinary shares of 3 pence each 5,000,000 5,000,000 No. £ No. £Called up, allotted and fully paidOrdinary shares of 3 pence each 34,087,067 1,022,612 24,737,073 742,112 On 1 February 2007, the Company issued 2,750,000 ordinary shares at 90 penceeach as part of the Initial Public Offering. 3,900,000 Convertible Loan Notes converted to 6,500,000 ordinary shares at 60pence each on 1 February 2007. During the six months ending 30 June 2007, 99,998 warrants were exercised forproceeds of £29,999 and the same number of ordinary shares were issued. For information on share capital movements for the comparative period 16 May2006 - 31 December 2006, please refer to the statutory accounts for that period. This information is provided by RNS The company news service from the London Stock Exchange