20 Sep 2013 07:01
20 September 2013
EDENVILLE ENERGY PLC ("Edenville" or the "Company") (AIM:EDL),
Interim Results for the Six Months Ended 30 June 2013
Edenville Energy plc, the African coal exploration and development company, today announces its unaudited Interim Results for the six months ended 30 June 2013.
Highlights for the period
· Upgraded, JORC-compliant, Mineral Resource Estimate for Rukwa Coal Deposit published March 2013
· Scoping Study commissioned to assess commercial viability of Rukwa Coal Project
· Appointment of Sally Schofield as Chairman. Simon Rollason takes non executive Director position.
· £5 million equity financing facility agreed between Edenville and Darwin Strategic
· Drawdown of £106,895 in April 2013 under Darwin facility
· £10,469,447 net assets
· £300,560 loss
· £341,910 cash reserves
Post period Highlights
· Rukwa Coal Project Scoping Study Results published September 2013
· Engagement of RAFCO Group, an East African Mining and Energy Specialist, September 2013
· Further drawdown under the Darwin equity financing facility of £390,000 in September 2013
· Appointment of Rufus Short as CEO, 20 September 2013
Sally Schofield, Chairman of Edenville, commented:
"The Board of Directors believes that Edenville is in a much stronger position with respect to fully recognising the commercial viability of its Namwele, Mkomolo and Muze coal deposits, collectively known as the Rukwa Coal Project, in south-western Tanzania.
"The company is well funded to satisfy its immediate needs as it keeps a close eye on its operating costs. At the same time, we are maintaining a focused portfolio of licences in Tanzania and we aim to keep land holding costs as low as practically possible as we progress.
"The conclusions of the Scoping Study published in September, demonstrates that there is a viable commercial opportunity for Edenville to become a power producer, utilising a small scale, coal-to-power business scenario."
Contact:
Edenville Energy plc +44 (0)20 7653 9850
Sally Schofield - Chairman
FinnCap +44 (0)20 7220 0500
Geoff Nash / Charlotte Stranner / Joanna Weaving
Newgate Threadneedle +44 (0)20 7653 9850
Graham Herring
Chairman's Statement
In February 2013, we welcomed Rufus Short to the Board, an addition which immediately had a positive impact on the Company from a corporate and operational perspective. During March, the Company announced the change in Chairman, with Simon Rollason remaining on the Board as an NED to maintain the links built over the past 3 years in Tanzania and the UK.
On 27 March 2013, the Company entered into a £5 million Equity Financing Facility ("EFF") with Darwin Strategic Limited ("Darwin"), a majority owned subsidiary of Henderson Global Investors' Volantis Capital ("Henderson Volantis"). The facility gives the Company access to efficient, cost effective financing, as needed. The facility can be used entirely at our discretion and considerably reduces our future financing risk. During the period, the Company raised £106,895 under this facility from a subscription of 53,000,000 ordinary shares at 0.2p per share. Subsequent to the end of the half year reporting period, on 17 September 2013, the Company raised a further £390,000 from a subscription of 210,069,392 ordinary shares at 0.186 per share.
The publication of Edenville's updated Mineral Resource Estimate in March of this year saw a significant upgrade of coal tonnage from the Inferred Category, giving us 57.5 million tonnes of coal, Measured & Indicated, with a calorific value of 17.42MJ/Kg (float density = 2.0, yield 34.4%). We are now in possession of a robust geological model, with the coal resource constrained to discrete coal zones within the overall coal measure sequence.
Edenville then focused on how best to monetise this upgraded resource, commissioning SMS Consultants to generate an independent Scoping Study. The conclusions of the Scoping Study, published in September, demonstrate that there is a commercial opportunity for Edenville to become a power producer, utilising a small scale, coal-to-power business scenario.
Edenville maintains a very focused portfolio of Licences in Tanzania and we aim to keep land holding costs as low as practically possible as we progress. We will be reviewing our Licenses and consider whether to renew certain holdings, particularly in the Uranium based areas given our focus on coal. The company is currently in a period of relatively low capital expenditure and anticipates burn rates to remain low as we enter the next stage of our development.
The recent engagement of RAFCO Group, an East African Mining and Energy specialist, is a positive step which will help progress our Rukwa Coalfields towards a development decision and identify like-minded co-investors and partners to participate in the next phase of the project's development.
EDENVILLE ENERGY PLC
chairman's statement
FOR THE SIX MONTHS ENDED 30 JUNE 2013
I am pleased to report on the interim results of the Group for the six months ended 30th June 2013.
Operational Review
The first six months of 2013 saw Edenville's comprehensive drill programme come to a close, with the final set of drill results announced in January. A total of 19 additional boreholes were drilled within the Mkomolo Block, another 4 drilled within the Namwele Block and 5 within the Muze Block for a combined total meterage of 4,528.84m during the 2012 drill season.
Edenville commissioned Sound Mining Solutions Limited ('SMS'), of South Africa, to generate a new Mineral Resource Statement for the Namwele, Mkomolo and Muze block, collectively known as the Rukwa Coal Project. For the purpose of the resource estimate, SMS used a total of 41 diamond drillholes for a total meterage of 5,726.26m at the Mkomolo project, 12 drillholes at Namwele and 5 at Muze, with total drilled meters of 1,426.90m and 831.84m respectively.
The SMS geological model identified separate, discrete coal zones within the overall coal measure sequence. The total in-situ tonnages contained within these coal zones is now estimated at 173 million tonnes Measured, Indicated and Inferred for the three deposits evaluated, of which 57.5 million tonnes is Measured and Indicated at 17.42 MJ/kg (float density = 2.0, yield = 34.4%).
This updated Mineral Resource Statement represented a significant upgrade from the Inferred category to Measured & Indicated and 90% of this resource tonnage lies within Mkomolo and Namwele blocks; Muze is still to be fully evaluated.
The positive results of the upgraded Mineral Resource Statement allowed Edenville to commission a further study from SMS - a Scoping Study designed to assess the commercial viability of the Company's Rukwa Coal Project.
The results of the Scoping Study were published post period end in September 2013, and outlined an opportunity for Edenville to progress the Rukwa Coal Project as the feed for a small scale coal-to-power operation. The small power producer scenario offers the fastest and most viable commercial opportunity to move forward towards production, with optimal coal-to-power scenario based on 10MW power plant supplying the local market. Just 35% of current coal resource has been assessed and this provides sufficient fuel to support 50 year power plant and project lifespan, via a straightforward open pit mine with small footprint.
Edenville engaged RAFCO Group, an East African Mining and Energy specialist, in September 2013 and will work together to identify like-minded co-investors and partners to take advantage of this next phase in the Company's development.
Financing
On 27 March 2013, the Company entered into a £5 million Equity Financing Facility ("EFF") with Darwin Strategic Limited ("Darwin"), a majority owned subsidiary of Henderson Global Investors' Volantis Capital ("Henderson Volantis"). The facility gives the Company access to efficient, cost effective financing, as needed. The facility can be used entirely at our discretion and considerably reduces our future financing risk. During the period, the Company raised £106,895 under this facility from a subscription of 53,000,000 ordinary shares at 0.2p per share. Subsequent to the year end, on 17 September 2013, the Company raised a further £390,000 from a subscription of 210,069,392 ordinary shares at 0.186 per share.
Financial Results
The Company made a loss after taxation for the six month period ended 30 June 2013 of £300,560 and had net assets at that date of £10,469,447.
The total comprehensive income for the period was £282,737 (June 2012: Loss £410,273) which included a gain of £583,297 (30 June 2012: loss £91,150) arising from the translation of the Tanzanian subsidiary company accounts from US Dollars to Sterling.
At 30 June 2013, the Company had cash reserves of £341,910.
Outlook
Following the results of the recent Scoping study and our recent partnership with RAFCO, the Company is well placed to deliver on its more focused strategy of becoming a power producer, utilising a small scale, coal-to-power business scenario.
The Company is well funded for its immediate needs, has its costs well under control and the Board remains confident for the future of the Company as it seeks to deliver long term value for its shareholders.
Sally Schofield
Chairman
20 September 2013
EDENVILLE ENERGY PLC
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED 30 JUNE 2013
Six months ended 30 June 13 | Six months ended 30 June 12 | Year ended 31 Dec 12 | ||
Unaudited | Unaudited | Audited | ||
Note | £ | £ | £ | |
Gross profit | - | - | - | |
Administrative expenses | (300,564) | (273,691) | (598,415) | |
Share based payments | - | (45,437) | (45,437) | |
|
|
| ||
Group operating loss | (300,564) | (319,128) | (643,852) | |
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|
| ||
Finance income | 4 | 5 | 10 | |
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| ||
Loss on operations before taxation | (300,560) | (319,123) | (643,842) | |
Taxation | - | - | - | |
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|
| ||
Loss for the period after taxation | (300,560) | (319,123) | (643,842) | |
Other comprehensive income/(loss): | ||||
Gain/(loss) on translation of overseas subsidiary | 583,297 | (91,150) | (419,893) | |
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|
| ||
Total comprehensive income/(loss) for the period |
282,737 |
(410,273) |
(1,063,735) | |
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|
| ||
Attributable to: | ||||
Equity holders of the Company | 282,998 | (410,220) | (1,063,381) | |
Non controlling interest | (261) | (53) | (354) | |
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| ||
282,737 | (410,273) | (1,063,735) | ||
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Loss per share | ||||
- basic and diluted (pence) | 2 | (0.007) | (0.007) | (0.01) |
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| ||
The loss for the period arises from the Group's continuing operations.
EDENVILLE ENERGY PLC
CONSOLIDATED statement of financial position
as at 30 june 2013
As at 30 June 13 | As at 30 June 12 | As at 31 Dec 12 | ||
Unaudited | Unaudited | Audited | ||
Note | £ | £ | £ | |
Non-current assets | ||||
Property, plant and equipment | 60,024 | 80,760 | 68,047 | |
Intangible assets | 4 | 11,221,803 | 9,541,191 | 10,379,827 |
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| ||
11,283,827 | 9,621,951 | 10,447,874 | ||
Current assets | ||||
Trade and other receivables | 206,934 | 164,242 | 258,623 | |
Cash and cash equivalents | 341,910 | 2,283,822 | 784,072 | |
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|
| ||
548,844 | 2,448,064 | 1,042,695 | ||
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| ||
Current liabilities | ||||
Trade and other payables | (54,773) | 71,424 | (164,567) | |
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|
| ||
Current assets less current liabilities | 494,071 | 2,376,640 | 878,128 | |
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| ||
Total assets less current liabilities | 11,777,898 | 11,998,591 | 11,326,002 | |
Non -current liabilities | ||||
Provisions for other liabilities and charges | (1,308,451) | (1,274,803) | (1,231,400) | |
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| ||
10,469,447 | 10,723,788 | 10,094,602 | ||
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| ||
Capital and reserves | ||||
Called-up share capital | 5 | 976,188 | 940,588 | 965,588 |
Share premium account | 11,995,027 | 11,913,686 | 11,913,686 | |
Share based payment reserve | 326,984 | 335,344 | 326,984 | |
Foreign currency translation reserve | (74,030) | (328,584) | (657,327) | |
Retained earnings | (2,774,372) | (2,158,015) | (2,474,073) | |
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| ||
Issued capital and reserves attributable to owners of the parent company | 10,449,797 | 10,703,019 | 10,074,858 | |
Non-controlling interest | 19,650 | 20,769 | 19,744 | |
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| ||
Total equity | 10,469,447 | 10,723,788 | 10,094,602 | |
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EDENVILLE energy PLC
CONSOLIDATED statement of changes in equity
FOR THE SIX MONTHS ENDED 30 JUNE 2013
----------------------------------Equity Interests-------------------------------- | ||||||||
Share capital |
Share premium |
Retained Earnings |
Share option reserve |
Foreign currency translation reserve |
Total |
Non- Controlling interest |
Total | |
£ | £ | £ | £ | £ | £ | £ | £ | |
Balance at 1 January 2013 | 965,588 | 11,913,686 | (2,474,073) | 326,984 | (657,327) | 10,074,858 | 19,744 | 10,094,602 |
Issue of share capital | 10,600 | 96,295 | - | - | - | 106,895 | - | 106,895 |
Share issue costs | - | (14,954) | - | - | - | (14,954) | - | (14,954) |
Foreign currency translation | - | - | - | - | 583,297 | 583,297 | 167 | 583,464 |
Loss for the period | - | - | (300,299) | - | - | (300,299) | (261) | (300,560) |
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|
| |
Balance at 30 June 2013 | 976,188 | 11,995,027 | (2,774,372) | 326,984 | (74,030) | 10,449,797 | 19,650 | 10,469,447 |
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| |
Balance at 1 January 2012 | 740,588 | 9,707,686 | (1,838,945) | 289,907 | (237,434) | 8,661,802 | 21,055 | 8,682,857 |
Issue of share capital | 200,000 | 2,300,000 | - | - | - | 2,500,000 | - | 2,500,000 |
Share issue costs | - | (94,000) | - | - | - | (94,000) | - | (94,000) |
Share based payment charge | - | - | - | 45,437 | - | 45,437 | - | 45,437 |
Minority interest on fair value adjustment |
- |
- |
- |
- |
- |
- |
(223) |
(223) |
Other reserves | - | - | - | - | - | - | (10) | (10) |
Foreign currency translation | - | - | - | - | (91,150) | (91,150) | - | (91,150) |
Total comprehensive loss for the period | - | - | (319,070) | - | - | (319,070) | (53) | (319,123) |
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| |
Balance at 30 June 2012 | 940,588 | 11,913,686 | (2,158,015) | 335,344 | (328,584) | 10,703,019 | 20,769 | 10,723,788 |
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| |
Balance at 1 January 2012 | 740,588 | 9,707,686 | (1,838,945) | 289,907 | (237,434) | 8,661,802 | 21,055 | 8,682,857 |
Issue of share capital | 200,000 | 2,300,000 | - | - | - | 2,500,000 | - | 2,500,000 |
Cost of issue | - | (94,000) | - | - | - | (94,000) | - | (94,000) |
Exercise of warrants | 25,000 | - | 8,360 | (8,360) | - | 25,000 | - | 25,000 |
Share based payment charge | - | - | - | 45,437 | - | 45,437 | - | 45,437 |
Foreign currency translation | - | - | - | - | (419,893) | (419,893) | (957) | (420,850) |
Loss for the year | - | - | (643,488) | - | - | (643,488) | (354) | (643,842) |
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Balance at 31 December 2012 | 965,588 | 11,913,686 | (2,474,073) | 326,984 | (657,327) | 10,074,858 | 19,744 | 10,094,602 |
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EDENVILLE ENERGY PLC
consolidated CASH FLOW STATEMENT
FOR THE SIX MONTHS ENDED 30 JUNE 2013
Six months ended 30 June 13 | Six months ended 30 June 12 | Year ended 31 Dec 12 | |
Unaudited | Unaudited | Audited | |
£ | £ | £ | |
Cash flows from operating activities | |||
Operating loss | (300,564) | (319,128) | (643,852) |
Impairment of tangible & intangible non-current assets |
- |
- |
- |
Depreciation | 8,756 | 2,220 | 13,812 |
Share based payments | - | 45,437 | 45,437 |
Foreign exchange gain/(loss) | 315 | (5,978) | (34,803) |
(Decrease)/increase in trade and other receivables | 60,823 | (60,538) | (153,537) |
(Decrease)/increase in trade and other payables | (113,654) | (44,492) | 48,292 |
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| |
Net cash from operating activities | (344,324) | (382,479) | (724,651) |
Cash flows from investing activities | |||
Purchase of exploration and evaluation assets | (190,679) | (187,137) | (1,370,377) |
Purchase of fixed assets | (561) | (64,587) | (64,288) |
Finance income | 4 | 5 | 10 |
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| |
Net cash used in investing activities | (191,236) | (251,719) | (1,434,655) |
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Cash flows from financing activities | |||
Proceeds on issue of shares | 106,895 | 2,500,000 | 2,525,000 |
Share issue costs | (14,954) | (94,000) | (94,000) |
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| |
Net cash generated in from financing activities | 91,941 | 2,406,000 | 2,431,000 |
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| |
Net (decrease)/increase in cash and cash equivalents | (443,619) | 1,771,802 | 271,694 |
Cash and cash equivalents at beginning of year | 784,072 | 511,538 | 511,538 |
Exchange losses on cash and cash equivalents | 1,457 | 482 | 840 |
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Cash and cash equivalents at end of year | 341,910 | 2,283,822 | 784,072 |
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EDENVILLE ENERGY PLC
NOTES TO THE INTERIM REPORT
FOR THE SIX MONTHS ENDED 30 JUNE 2013
1. Financial information and basis of preparation
The interim financial statements of Edenville Energy Plc are unaudited consolidated financial statements for the six months ended 30 June 2013 which have been prepared in accordance with IFRSs as adopted by the European Union. They include unaudited comparatives for the six months ended 30 June 2012 together with audited comparatives for the year ended 31 December 2012.
The accounting policies applied are consistent with those of the annual financial statements for the year ended 31 December 2012, as described in those financial statements.
The interim financial statements do not constitute statutory accounts within the meaning of section 434 of the Companies Act 2006. The statutory accounts for the year ended 31 December 2012 have been reported on by the company's auditors and have been filed with the Registrar of Companies. The report of the auditors was unqualified and did not contain an emphasis of matter paragraph and did not contain any statement under section 498 of the Companies Act 2006.
The following new standards and amendments to standards are mandatory for the first time for the financial year beginning 1 January 2013:
Effective date (period beginning on or after) | ||
IFRS 1, IAS 1, 16, 32, 34 | Amendments resulting from Annual Improvements 2009-2011 Cycle
| 1 January 2013 |
IFRS 1 | Amendments for government loan with a below-market rate of interest when transitioning to IFRSs | 1 January 2013 |
IFRS 10 | Original issue Amendments to transitional guidance | 1 January 2013 1 January 2013 |
IFRS 11 | Joint Arrangements Amendments to transitional guidance | 1 January 2013 |
IFRS 12 | Disclosure of interests in other entities Amendments to transitional guidance | 1 January 2013 1 January 2013 |
IFRS 13 | Fair value measurement | 1 January 2013 |
IAS 1 | Presentation of Financial Statements - Amendments to revise the way other comprehensive income is presented | 1 July 2012 |
IAS 19 | Employee Benefits - Amended Standard resulting from the Post- Employment Benefits and Termination Benefits projects | 1 January 2013 |
IAS 27 | Separate financial statements | 1 January 2013 |
IAS 28 | Investments in associates and joint ventures | 1 January 2013 |
IFRIC 20 | Stripping Costs in the Production Phase of a Surface Mine | 1 January 2013 |
The adoption of these standards has not had a material effect on the financial statements of the group.
2. Loss per share
The calculation of the basic and diluted loss per share is based on the following data:
30 June 13 | 30 June 12 | 31 December 12 | |
£ | £ | £ | |
Loss after taxation | (300,299) | (319,070) | (643,488) |
The weighted average number of shares in the period were | |||
Basic ordinary shares | 4,591,716,643 | 4,281,381,240 | 4,380,642,635 |
Basic and diluted loss per share (pence) | (0.007) | (0.007) | (0.01) |
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The loss attributable to equity shareholders and weighted average number of ordinary shares for the purposes of calculating diluted earnings per ordinary share are identical to those used for basic earnings per ordinary share. This is because the exercise of share options and warrants would have the effect of reducing the loss per ordinary share and is therefore anti-dilutive.
3. Dividends
No dividends are proposed for the six months ended 30 June 2013 (six months ended 30 June 2012 £nil: year ended 31 December 2012 £nil).
4. Intangible assets
Exploration and evaluation assets | ||||
Javan Licences | Tanzanian Licences |
Goodwill |
Total | |
£ | £ | £ | £ | |
Cost or valuation | ||||
As at 1 January 2013 | 36,536 | 9,126,958 | 1,252,869 | 10,416,363 |
Additions | - | 190,679 | - | 190,679 |
Foreign exchange adjustment |
- |
573,908 |
77,389 |
651,297 |
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| |
At 30 June 2013 | 36,536 | 9,891,545 | 1,330,258 | 11,258,339 |
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Accumulated amortisation and impairment | ||||
As at 1 January 2013 | 36,536 | - | - | 36,536 |
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As at 30 June 2013 | 36,536 | - | - | 36,536 |
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Net book value | ||||
As at 30 June 2013 | - | 9,891,545 | 1,330,258 | 11,221,803 |
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4. Intangible assets (continued)
| Exploration and evaluation assets | |||
Javan Licences | Tanzanian Licences |
Goodwill |
Total | |
£ | £ | £ | £ | |
Cost or valuation As at 1 January 2012 |
36,536 |
8,144,976 |
1,309,631 |
9,491,143 |
Additions | - | 187,137 | - | 187,137 |
Fair value adjustment | - | - | (223) | (223) |
Foreign exchange adjustment |
- |
(86,971) |
(13,359) |
(100,330) |
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| |
At 30 June 2012 | 36,536 | 8,245,142 | 1,296,049 | 9,577,727 |
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Accumulated amortisation and impairment | ||||
As at 1 January | 36,536 | - | - | 36,536 |
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As at 30 June 2012 | 36,536 | - | - | 36,536 |
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Net book value | ||||
As at 30 June 2012 | - | 8,245,142 | 1,296,049 | 9,541,191 |
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4. Intangible assets (continued)
Exploration and evaluation assets | ||||
Javan Licences | Tanzanian Licences |
Goodwill |
Total | |
£ | £ | £ | £ | |
Cost or valuation As at 1 January 2012 |
36,536 |
8,144,976 |
1,309,631 |
9,491,143 |
Additions | - | 1,370,387 | - | 1,370,387 |
Foreign exchange adjustment |
- |
(388,405) |
(56,762) |
(445,167) |
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| |
At 31 December 2012 |
36,536 |
9,126,958 |
1,252,869 |
10,416,363 |
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| |
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Accumulated amortisation and impairment | ||||
As at 1 January 2012 | 36,536 | - | - | 36,536 |
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As at 31 December 2012 | 36,536 | - | - | 36,536 |
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Net book value | ||||
As at 31 December 2012 | - | 9,126,958 | 1,252,869 | 10,379,827 |
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The outcome of ongoing exploration and evaluation, and therefore whether the carrying value of exploration and evaluation assets will ultimately be recovered, is inherently uncertain. The directors have assessed the value of exploration and evaluation expenditure carried as intangible assets. In their opinion there has been no impairment loss to intangible exploration and evaluation assets in the period.
5. Share capital
No. | £ | ||
30 June 2013 | |||
Allotted, called up and fully paid | |||
Ordinary shares of 0.02p each | 4,624,216,406 | 924,844 | |
Deferred shares of 0.08p each | 64,179,932 | 51,344 | |
| |||
976,188 | |||
| |||
30 June 2012 | |||
Allotted, called up and fully paid | |||
Ordinary shares of 0.02p each | 4,446,216,405 | 889,244 | |
Deferred shares of 0.08p each | 64,179,932 | 51,344 | |
| |||
940,588 | |||
| |||
31 December 2012 | |||
Allotted, called up and fully paid | |||
Ordinary shares of 0.02p each | 4,571,216,405 | 914,244 | |
Deferred shares of 0.08p each | 64,179,932 | 51,344 | |
| |||
965,588 | |||
|
On 22 April 2013 the company issued 53,000,000 ordinary shares of 0.02p each for a total consideration of £106,895.
6. Distribution on interim report to shareholders
The interim report will be available for inspection by the public at the registered office of the company during normal business hours on any weekday and from the Company's website http://www.edenville-energy.com/. Further copies are available on request.
