Last checked at 13 Sep 2011 07:00
Noricum Gold Limited / EPIC: NMG / Sector: Natural Resources
13 September 2011
Noricum Gold Limited (`Noricum Gold' or `the Company') Interim Results
Noricum Gold Limited, the Austrian focussed gold exploration and development company, is pleased to announce its results for the six months ended 30 June 2011.
Overview
* Advanced portfolio of five highly prospective gold and precious metal exploration and development projects * Extensive historical data has enabled the progression of two projects, Rotg¼lden and Kliening, to drilling status * High grade values delineated from drilling at Kliening including 12.52 g/t Au over 0.5 metres and 4.71 g/t over 0.5 metres, metres around these samples currently being assayed * Two clear targets identified at Kliening project for further exploration * Five hole 1,800 metre drilling programme commenced at Rotg¼lden with results anticipated during Q4 2011 * Exciting sampling results at Altenberg target, Rotg¼lden, indicating more than one mineralised system and massive vein and breccia mineralisation * Post period end, electromagnetic work at Rotg¼lden further bolsters strong prospectivity and multi commodity potential of the site * Mapping and sampling being undertaken at Schonberg * Anticipate generating a steady flow of news as projects are developed through the resource cycle
Chairman's Statement
Over the past six months, we have received encouraging results and met key development milestones on schedule, as we advance our portfolio of highly prospective gold and precious metal exploration and development projects in the historic, high grade gold production region of south-central Austria.
We have five projects located in a known area of significant mineralisation and extensive historical data has enabled us to progress two projects, Rotg¼lden and Kliening, to drilling status. High grade values have been delineated from drilling to date at Kliening, whilst drilling has just commenced at Rotg¼lden with results anticipated during Q4 2011.
We are also gaining encouraging results from underexplored areas of our licences and we are confident that the scale of all our projects will continue to expand.
Rotg¼lden
The 51 sq km Rotg¼lden project hosts 15 historic underground mines including the previously producing Rotg¼lden gold/copper/silver mine. Over the period we have increased our knowledge of the project in order to progress it towards drill ready status. Having received authorisation to commence drilling at the project in August 2011, we commenced a five hole 1,800 metre drill programme, conducted by Voest Alpine and we look forward to receiving the results from this campaign in Q4 2011.
Historic work at the project identified massive sulphide ore (chalcopyrite/ pyrrhotite) (hole C2 identified 2.7 metres at 44g/t gold from 24.3 metres). In line with this, we commenced an exploration programme in April 2011, which included geophysical and geochemical work and electromagnetic (`EM') surveying designed to identify further high grade gold, silver and copper drill targets typical in the region. As announced in August 2011, the EM work encountered multiple anomalies, continuing to highlight the strong prospectivity and multi-commodity potential of the site.
Exploration has also been undertaken on the wider Rotg¼lden area in order to identify the extent of mineralised strike extensions. Post period end, we conducted mapping and sampling from the Altenberg Valley and the Schurfspitze areas during a reconnaissance field trip, which traced the strike of mineralisation southeast from Rotg¼lden. Following the receipt of encouraging results from outcrop and grab samples, which included values up to 2.53 g/t Au, 428.4 g/t Ag, 1.47% Cu at Altenberg and 5.60g/t Au with 41.5 g/t Ag, and 4.45 g /t Au with 5.6 g/t Ag at Schurfspitze, we believe that there is a continuation of the mineralisation from the Rotg¼lden mine through both areas along a strike length of approximately 8 km.
Unlike at Schurfspitze, where the geological setting and the mineralisation encountered was similar to that at Rotg¼lden, the sampling at Altenberg highlighted slightly different mineralisation characteristics with more than one mineralised system and massive, vein and breccia mineralisation. This target is particularly exciting and will be followed up going forward with a view to advancing towards drilling during the field season in 2012.
Kliening
Our 49 sq km Kliening project was swiftly identified as being highly prospective for gold and other precious metals due to the clearly defined mineralised structures present in the area. Further to analysis of historical data, we identified two clear targets for further exploration.
The first target is lode style mineralisation at Buchbauer-Bischofeck where a drilling programme has been undertaken. Historic work highlighted the presence of several groups of parallel vein swarms up to 100 metres apart and up to 2.5 metres wide, appearing 25 metres apart within the individual swarms. The area has historically shown gold mineralisation as high as 23.6g/t gold.
Five holes have now been drilled to a total depth of approximately 1,200 metres. Highlights to date include hole BB-07-01 which recorded 12.52 g/t Au over 0.5 metres and 4.71 g/t over 0.5 metres and results from infill samples will be announced shortly. We have made the decision to temporarily stop drilling at Kliening to enable Voest Alpine to fast track the drilling programme at Rotg¼lden.
Sch¶nberg
We are currently undertaking mapping and rock chip sampling at our 24 sq km Sch¶nberg licence, approximately 100 km due east of Rotg¼lden, located in an historic copper mining zone.
Financial Review
As an exploration and development company which has no revenue we are reporting a loss for the six months ended 30 June 2011 of £328,685 (2010: £2,933), which is in line with budget.
In tandem with our listing on AIM at the end of 2010, we raised £2,120,000 and the Group's cash position at the end of the period under review was £872,832.
Outlook
Our exploration efforts since listing in December 2010 have deepened our knowledge of the mineralisation and prospectivity of the Rotg¼lden and Kliening projects, whilst the high grade values we have reported to date underpin the potential of our Austrian gold and precious metals portfolio. Importantly, our activities continue to gain strong support from both the local communities and the government with whom we are maintaining a transparent dialogue with regards to developments across the portfolio.
Over the coming months, we anticipate generating a steady flow of news as we develop our projects through the resource cycle. Our drilling campaign at Rotg¼lden is gaining momentum and we also look forward to gaining results from infill samples from our Kliening drilling campaign.
Finally, I would like to thank both our shareholders and our team for their continued enthusiasm and support over the period.
Marcus Edwards-JonesChairman12 September 2011 **ENDS**
For further information please visit www.noricumgold.com or contact:
Greg Kuenzel Noricum Gold Limited Tel: 020 3326 1726 Roland Cornish Beaumont Cornish Limited Tel: 020 7628 3396 James Biddle Beaumont Cornish Limited Tel: 020 7628 3396 Michael Parnes Old Park Lane Capital plc Tel: 020 7493 8188 Hugo de Salis St Brides Media & Finance Ltd Tel: 020 7236 1177 Elisabeth Cowell St Brides Media & Finance Ltd Tel: 020 7236 1177
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Notes 6 months to 6 months to 30 June 2011 30 June 2010 Unaudited Unaudited £ £ Continuing operations Revenue - - Administration expenses (328,850) (2,933) Other net (losses) / gains - - Operating Loss (328,850) (2,933) Finance income 165 - Loss Before Taxation (328,685) (2,933) Corporate tax expense - - Loss for the period from continuing (328,685) (2,933)operations attributable to equity owners of the parent Other comprehensive income Exchange differences on translating foreign 39,744 -operations Total comprehensive income for the period (288,941) (2,933)attributable to equity owners of the parent Earnings per share from continuing operations attributable to the equity owners of the parent Basic and diluted (pence per share) 6 0.066 0.002
CONDENSED CONSOLIDATED BALANCE SHEET
Notes 30 June 31 December 2011 2010 Unaudited Audited £ £ Non-Current Assets Property, plant and equipment 9,826 1,999 Intangible assets 5 996,995 814,534 Investment in subsidiaries - - 1,006,821 816,533 Current Assets Trade and other receivables 224,768 33,535 Cash and cash equivalents 872,832 1,556,072 1,097,600 1,589,607 Total Assets 2,104,421 2,406,140 Current Liabilities Trade and other payables 97,595 110,373 Total Liabilities 97,595 110,373 Net Assets 2,006,826 2,295,767 Capital and Reserves Attributable to Equity Holders of the Company Called up share capital - - Share premium account 20,860,819 20,860,819 Reverse acquisition reserve (18,845,147) (18,845,147) Share option reserve 551,401 551,401 Foreign currency translation reserve 39,744 - Retained losses (599,991) (271,306) Total Equity 2,006,826 2,295,767
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
Attributable to Owners of the Parent Share Share Share Reverse Retained Total capital Premium option acquisition losses equity reserve reserve £ £ £ £ £ £ As at 1 January 2010 7 - - - - 7 Comprehensive income Loss for the year - - - - (2,933) (2,933) Total comprehensive - - - - (2,933) (2,933) income Transactions with - - - - - - owners As at 30 June 2010 7 - - - (2,933) (2,926) Attributable to Owners of the Parent Share Share Reverse Foreign Retained Total Premium option acquisition currency losses equity reserve reserve translation £ £ £ £ £ £As at 1 January 20,860,819 551,401 (18,845,147) - (271,306) 2,295,767 2011 Comprehensive income Loss for the year - - - - (328,685) (328,685) Currency - - - 39,744 - 39,744 translation differences Total comprehensive - - - 39,744 (328,685) (288,941) income Transactions with - - - - - - owners
As at 30 June 2011 20,860,819 551,401 (18,845,147) 39,744 (599,991) 2,006,826
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
30 June 30 June 2011 2010 Unaudited Unaudited £ £ Cash flows from operating activities Operating loss (328,849) (2,933) Adjustments for: Depreciation 1,257 - Share option expense - - Impairment of goodwill - - Foreign exchange (1,957) - Increase in trade and other receivables (191,234) - Decrease in trade and other payables (12,778) - Net cash used in operations (533,561) (2,933) Cash flows from investing activities Interest received 165 - Purchase of property, plant & equipment (9,084) - Loans granted to subsidiary undertakings - - Acquisition of subsidiary, net of cash - - acquired Exploration and evaluation activities (140,760) (84,372) Net cash used in investing activities (149,679) (84,372) Cash flows from financing activities Proceeds from borrowings - 99,736 Net cash from financing activities - 99,736 Net decrease / (increase) in cash and cash (683,240) 12,431 equivalents Cash and cash equivalents at beginning of 1,556,072 7 period Cash and cash equivalents at end of period 872,832 12,438
NOTES TO THE INTERIM FINANCIAL STATEMENTS
1. General Information
The principal activity of Noricum Gold Limited (`the Company') and its subsidiaries (together `the Group') is the exploration and development of precious and base metals. The Company's shares are listed on the Alternative Investment Market ("AIM") of the London Stock Exchange. The Company is incorporated in the British Virgin Islands and domiciled in the United Kingdom. The Company was incorporated on 10 February 2010 under the name Gold Mining Company Limited. On 22 November 2010 the Company changed its name to Noricum Gold Limited.
The address of the Company's registered office is Trident Chambers, PO Box 146, Road Town, Tortola BVI.
2. Basis of Preparation
The condensed consolidated interim financial statements have been prepared in accordance with the requirements of the AIM Rules for Companies. As permitted, the Company has chosen not to adopt IAS 34 "Interim Financial Statements" in preparing this interim financial information. The condensed interim financial statements should be read in conjunction with the annual financial statements for the year ended 31 December 2010, which have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union.
The interim financial information set out above does not constitute statutory accounts. They have been prepared on a going concern basis in accordance with the recognition and measurement criteria of International Financial Reporting Standards (IFRS) as adopted by the European Union. Statutory financial statements for the year ended 31 December 2010 were approved by the Board of Directors on 7 June 2011. The report of the auditors on those financial statements was unqualified.
The 2011 interim financial report of the Company has not been audited but has been reviewed by the Company's auditor, Littlejohn LLP, whose independent review report is included in this Interim Report.
Going concern
The Directors, having made appropriate enquiries, consider that adequate resources exist for the Group to continue in operational existence for the foreseeable future and that, therefore, it is appropriate to adopt the going concern basis in preparing the condensed interim financial statements for the period ended 30 June 2011.
Risks and uncertainties
The Board continuously assesses and monitors the key risks of the business. The key risks that could affect the Group's medium term performance and the factors that mitigate those risks have not substantially changed from those set out in the Group's 2010 Annual Report and Financial Statements, a copy of which is available on the Group's website: www.noricumgold.com. The key financial risks are liquidity risk, foreign exchange risk, credit risk, price risk and interest rate risk.
Critical accounting estimates
The preparation of condensed interim financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the end of the reporting period. Significant items subject to such estimates are set out in note 4 of the Group's 2010 Annual Report and Financial Statements. The nature and amounts of such estimates have not changed significantly during the interim period.
3. Accounting Policies
The same accounting policies, presentation and methods of computation have been followed in these condensed interim financial statements as were applied in the preparation of the Group's annual financial statements for the year ended 31 December 2010 except for the impact of the adoption of the Standards and interpretations described below.
3.1Changes in accounting policy and disclosures
(a) New and amended standards, and interpretations mandatory for the first time for the financial year beginning 1 January 2011 but not currently relevant to the Group.
The following standards and amendments to existing standards have been published and are mandatory for the Group's accounting periods beginning on or after 1 January 2011 or earlier periods, but not currently relevant to the Group.
A revised version of IAS 24 "Related Party Disclosures" simplified the disclosure requirements for government-related entities and clarified the definition of a related party. This revision was effective for periods beginning on or after 1 January 2011.
An amendment to IFRS 1 "First-time Adoption of International Financial Reporting Standards" relieved first-time adopters of IFRSs from providing the additional disclosures introduced in March 2009 by "Improving Disclosures about Financial Instruments" (Amendments to IFRS 7). This amendment was effective for periods beginning on or after 1 July 2010.
Amendments to IFRS 7 "Financial Instruments: Disclosures" were designed to help users of financial statements evaluate the risk exposures relating to transfers of financial assets and the effect of those risks on an entity's financial position. These amendments were effective for periods beginning on or after 1 January 2011 but are still subject to EU endorsement.
Amendments to IAS 32 "Financial Instruments: Presentation" addressed the accounting for rights issues that are denominated in a currency other than the functional currency of the issuer. These amendments were effective for periods beginning on or after 1 February 2010.
IFRIC 19 "Extinguishing Financial Liabilities with Equity Instruments" clarified the treatment required when an entity renegotiates the terms of a financial liability with its creditor, and the creditor agrees to accept the entity's shares or other equity instruments to settle the financial liability fully or partially. This interpretation was effective for periods beginning on or after 1 July 2010.
An amendment to IFRIC 14 "IAS 19 - The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction", on prepayments of a minimum funding requirement, applies in the limited circumstances when an entity is subject to minimum funding requirements and makes an early payment of contributions to cover those requirements. The amendment permitted such an entity to treat the benefit of such an early payment as an asset. This amendment was effective for periods beginning on or after 1 January 2011.
(b) New standards, amendments and interpretations issued but not effective for the financial year beginning 1 January 2011 and not early adopted
The Group's assessment of the impact of these new standards and interpretations is set out below.
IFRS 10 "Consolidated Financial Statements" builds on existing principles by identifying the concept of control as the determining factor in whether an entity should be included within the consolidated financial statements of the parent company. The standard provides additional guidance to assist in the determination of control where this is difficult to assess. This standard is effective for periods beginning on or after 1 January 2013, subject to EU endorsement. The Directors are assessing the possible impact of this standard on the Group's Financial Statements.
IFRS 11 "Joint Arrangements" provides for a more realistic reflection of joint arrangements by focusing on the rights and obligations of the arrangement, rather than its legal form (as is currently the case). The standard addresses inconsistencies in the reporting of joint arrangements by requiring a single method to account for interests in jointly controlled entities. This standard is effective for periods beginning on or after 1 January 2013, subject to EU endorsement. The Directors are assessing the possible impact of this standard on the Group's Financial Statements.
IFRS 12 "Disclosure of Interests in Other Entities" is a new and comprehensive standard on disclosure requirements for all forms of interests in other entities, including joint arrangements, associates, special purpose vehicles and other off balance sheet vehicles. This standard is effective for periods beginning on or after 1 January 2013, subject to EU endorsement. The Directors are assessing the possible impact of this standard on the Group's Financial Statements.
IFRS 13 "Fair Value Measurement" improves consistency and reduces complexity by providing, for the first time, a precise definition of fair value and a single source of fair value measurement and disclosure requirements for use across IFRSs. It does not extend the use of fair value accounting, but provides guidance on how it should be applied where its use is already required or permitted by other standards. This standard is effective for periods beginning on or after 1 January 2013, subject to EU endorsement. The Directors are assessing the possible impact of this standard on the Group's Financial Statements.
IAS 27 "Separate Financial Statements" replaces the current version of IAS 27 "Consolidated and Separate Financial Statements" as a result of the issue of IFRS 10 (see above). This revised standard is effective for periods beginning on or after 1 January 2013, subject to EU endorsement. The Directors are assessing the possible impact of this standard on the Group's Financial Statements.
IAS 28 "Investments in Associates and Joint Ventures" replaces the current version of IAS 28 "Investments in Associates" as a result of the issue of IFRS 11 (see above). This revised standard is effective for periods beginning on or after 1 January 2013, subject to EU endorsement. The Directors are assessing the possible impact of this standard on the Group's Financial Statements.
Amendments to IAS 1 "Presentation of Financial Statements" require items that may be reclassified to the profit or loss section of the income statement to be grouped together within other comprehensive income (OCI). The amendments also reaffirm existing requirements that items in OCI and profit or loss should be presented as either a single statement or two consecutive statements. These amendments are effective for periods beginning on or after 1 July 2012, subject to EU endorsement. The Directors are assessing the possible impact of these amendments on the Group's Financial Statements.
Amendments to IAS 19 "Employment Benefits" eliminate the option to defer the recognition of gains and losses, known as the "corridor method"; streamline the presentation of changes in assets and liabilities arising from defined benefit plans, including requiring re-measurements to be presented in other comprehensive income; and enhance the disclosure requirements for defined benefit plans, providing better information about the characteristics of defined benefit plans and the risks that entities are exposed to through participation in those plans. These amendments are effective for periods beginning on or after 1 January 2013, subject to EU endorsement, and are not expected to have an impact on the Group's Financial Statements.
4. Dividends
No dividend has been declared or paid by the Company during the six months ended 30 June 2011 (2010: nil).
5. Intangible Fixed Assets
The movement in capitalised exploration and evaluation costs during the period was as follows:
Exploration & Evaluation at Cost and Net Book £Value Balance as at 1 January 2011 814,534 Additions 140,760 Exchange rate variances 41,701 As at 30 June 2011 996,995
Exploration and evaluation assets are acquired.
6. Loss per Share
The calculation of the total basic loss per share of 0.066 pence (2010: 0.002) is based on the loss attributable to equity owners of the parent company of £ 328,685 (2010: £2,933) and on the weighted average number of ordinary shares of 497,234,155 (2010: 180,000,000) in issue during the period.
In accordance with IAS 33 the weighted average number of shares used for the comparative period and the period prior to acquisition has been restated for the effect of the reverse acquisition.
No diluted earnings per share is presented as the effect on the exercise of share options would be to decrease the loss per share.
Details of share options that could potentially dilute earnings per share in future periods are disclosed in the notes to the Group's Annual Report and Financial Statements for the year ended 31 December 2010.
7. Commitments
The Group had capital expenditure contracted for at the end of the reporting period but not yet incurred of £45,845 relating to intangible exploration assets. All other commitments remain as stated in the Group's Annual Financial Statements for the year ended 31 December 2010.
8. Approval of interim financial statements
The Condensed interim financial statements were approved by the Board of Directors on 12 September 2011.
Independent Review Report to Noricum Gold Limited
Introduction
We have been engaged by Noricum Gold Limited to review the condensed set of Financial Statements in the half-yearly financial report for the six months ended 30 June 2011 which comprise the condensed consolidated statement of comprehensive income, condensed consolidated balance sheet, consolidated statement of changes in equity, condensed consolidated cash flow statement and related notes. We have read the other information contained in the half-yearly financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of Financial Statements.
Directors' Responsibilities
The half-yearly financial report is the responsibility of, and has been approved by, the Directors. The Directors are responsible for preparing the half-yearly financial report in accordance with the AIM Rules for Companies.
The annual Financial Statements of the Group are prepared in accordance with IFRSs as adopted by the European Union. The condensed set of Financial Statements included in this half-yearly financial report has been prepared in accordance with the requirements of the AIM Rules for Companies.
Our Responsibility
Our responsibility is to express to the Company a conclusion on the condensed set of Financial Statements in the half-yearly financial report based on our review. This report, including the conclusion, has been prepared for and only for the Company for the purpose of the AIM Rules for Companies and for no other purpose. We do not, in producing this report, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.
Scope of review
We conducted our review in accordance with the International Standard on Review Engagements 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the condensed set of Financial Statements in the half-yearly financial report for the six months ended 30 June 2011 is not prepared, in all material respects, in accordance with the AIM Rules for Companies.
Littlejohn LLPChartered Accountants and Registered Auditors1 Westferry CircusCanary WharfLondonE14 4HD12th September 2011