Last checked at 26 Aug 2014 07:00
Noricum Gold Limited / EPIC: NMG / Sector: Natural Resources
26 August 2014
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 2014.
Highlights
· Multiple coherent high grade gold and copper in soil anomalies delineated from soil sampling programme at Schonberg
· Approval granted by Austrian Mining Authority for initial 3,000 metre drill programme at Schonberg with drilling commencing in the coming weeks
· Approval granted for a 2,500 metre surface drilling programme at the Altenberg target area of the Rotgulden license
· Fully funded for 2014 drilling programmes
Noricum Gold Managing Director Greg Kuenzel said, "Having recently completed our extensive soil sampling programme at Schonberg we are now looking forward to commencing drilling at this high grade gold / copper project located in south-central Austria. We will commence with circa 3,000 metres at 3 locations and will use a combination of diamond drilling to test deeper massive sulphide targets as well as reverse circulation to test the high grade anomalies identified by the geochemistry work. The Company is also finalising an additional 2,000 metres in addition to the 3,000 already approved. In early July we obtained approval for a 2,500 metre drill programme at the highly prospective Altenberg valley target within the Rotgulden licence area. Due to logistics drilling at this location will be unable to commence this year. We look forward to providing further updates as the drilling progresses at Schonberg."
Chairman's Statement
The first six months of the year have seen us deliver high grade gold and copper results from soil sampling at Schonberg Precious Metals Project ('Schonberg') in tandem with on-going analysis of the drill core at the Rotgulden Gold and Precious Metals Project ('Rotgulden'), two of our five precious metals projects located in Austria. As a result of the work we have carried out during the period, the second half will see Noricum Gold undertake a maiden, fully funded drill programme at Schonberg which is due to commence imminently.
While it has not yet been possible to calculate a resource at the previously producing gold mine at Rotgulden, we have benefitted from undertaking parallel work programmes across multiple assets. Extensive reconnaissance work has consistently provided strong justification to drill Schonberg, and despite the delay at Rotgulden, we are ideally placed for growth throughout the rest of the year. We have an experienced team which enjoys an excellent relationship both with the community and the supportive mining authorities in Austria; full ownership of five high grade assets in the country; and easy access to infrastructure, drilling equipment and assaying services, all of which we believe will allow us to rapidly realise value in the future.
Schonberg Precious Metals Project
Schonberg is a 37 sq km project centered on the towns of Knittelfeld and Flatschach and located in an historic copper mining district. Exploration has confirmed the presence of up to eight veins along a 3km strike and across the main mining districts within the licence area: Brunngraben, Weissenbachgraben and Adlitzgraben (from west to east). The former mining district of Tremmelberg is situated further east and it is thought to be the continuation of the ore bearing structures. Three of the known veins were the main focus of historical mining and are considered the main ore veins. The veins are sub-parallel, generally trending northeast and steeply dipping to the northwest.
During the period, we undertook an extensive soil sampling programme covering 2.5 km of strike consisting of 2,164 samples over a tightly spaced grid. The results in traditional soil samples, where anomalism is often measured in the PPB range (parts per billion), have contained some very high grade results of up to 3.82 PPM (parts per million) of gold ('Au') and 8,640 ppm of copper ('Cu') (0.80%)
These results indicate that a pattern of mineralisation is occurring in the soil fraction being sampled. Anomalism has been detected in gold and copper in soils, with also some anomalism in other associated elements. The Company believes that this anomalism is related to the mapped veins which are the subject of historical mining, and that it is also possible that further veins exist as evidenced by mineralisation being encountered away from the mapped veins.
Following an oral hearing on site at Schonberg on 18 August 2014, we now have authorisation to conduct 3,000 metres of drilling. This will commence shortly, and we anticipate that this will consist of a blend of reverse circulation drilling designed primarily to test the anomalies identified by the soil sampling, and diamond drilling designed to test the deeper massive sulphide mineralisation. We plan to undertake up to a total of 5,000 metres of drilling at Schonberg and a second programme for an additional 2,000 metres is currently being submitted to the mining authority in Leoben for approval.
Rotgulden Gold and Precious Metals Project
Drilling at the previously producing mine at Rotgulden occupied a substantial portion of our resources in 2013, and while we were hopeful that we would be in a position to deliver a maiden JORC resource for the historic mine target, the complex nature of the mineralised structure became clear on receipt of the draft geological model from H&S Consultants Pty Ltd.
During the 1,300 metre drill programme, the high level of grade variability was highlighted, with results including: 3.9m @ 51.53 g/t of gold, 237.77 g/t of silver ('Ag') and 2.69% of copper from 4.7m, including 1.1m @ 181g/t Au, 807g/t Ag and 8.75% Cu. This has made it challenging to calculate consistent grades with which to update the geological model. While evaluation of the data is on-going, we anticipate that additional drilling on top of the 25 holes drilled from underground in 2013 will likely be required. The planning for this additional work is underway and further announcements will follow.
The previously producing mine is just one of four targets identified by an aerial electromagnetic and magnetic survey along 8km of strike. While naturally the Rotgulden mine has historically produced for previous holders, the high grade Altenberg, Schurfspitze and Wandstollen targets were previously unidentified and thus, have not been subject to modern exploration techniques or drilling. Sampling has returned exciting bonanza grades across all three and particularly at Altenberg where we received grades up to 86.4 g/t Au and 1,011 g/t of silver. These grades certainly warrant further investigation at depth, but considering the cost implications and logistics of undertaking a drill campaign at high altitudes, and in line with our strategy to maximize the use of our resources, we have decided to prioritise our operational and financial resources for drilling at Schonberg in the near term.
We still intend to move forward with planning procedures for drilling at Altenberg in the future. Following an Oral Hearing in July, we were granted authorisation for a 2,500 metre surface diamond drilling programme at the Altenberg target area by the Austrian Mining Authority. This is valid until November 2018.
Financial Review
As an exploration and development company which has no revenue we are reporting a loss for the six months ended 30 June 2014 of £315,467 (2013 Restated: £218,156), which is in line with our budget.
The Group's cash position at the end of the period was £1,502,406 and currently stands at approximately £1.4 million.
Outlook
As drilling commences at Schonberg, I believe that the remainder of 2014 will be characterised by substantial activity and news flow. Unlike at Rotgulden, we can drill Schonberg throughout the year, and with 5,000 metres in total planned, I anticipate that the hiatus normally experienced during the winter months, in terms of operational activity, will be significantly reduced, which I believe will be positive in terms of building momentum in our share price.
While Rotgulden has been a difficult asset to model, we benefit from having multiple very high grade targets throughout the licence area, and considering the grades received from rock chip sampling, their prospectivity remains high. In addition, we continue to evaluate prospective assets in line with our strategy to become a European gold producer. I would like to take this opportunity to thank our shareholders for their support during the first six months of the year, and I look forward to updating you regarding our progress going forward.
Michael Hutchinson
Chairman
22 August 2014
For further information please visit www.noricumgold.com or contact:
Greg Kuenzel | Noricum Gold Limited | Company | Tel: 020 3326 1726 |
Ewan Leggat | S. P. Angel Corporate Finance LLP | Nomad & Broker | Tel: 020 3463 2260 |
Laura Harrison | S. P. Angel Corporate Finance LLP | Nomad & Broker | Tel: 020 3463 2260 |
Elisabeth Cowell | St Brides Media & Finance Ltd | PR | Tel: 020 7236 1177 |
Frank Buhagiar | St Brides Media & Finance Ltd | PR | Tel: 020 7236 1177 |
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Notes | 6 months to 30 June 2014 Unaudited £ | 6 months to 30 June 2013 Unaudited and restated £ | |
Continuing operations | |||
Revenue | 1,353 | - | |
Administration expenses | (317,592) | (218,408) | |
Foreign exchange | - | - | |
Other net (losses) / gains | - | - | |
Operating Loss | (316,239) | (218,408) | |
Finance income | 772 | 252 | |
Loss Before Income Tax | (315,467) | (218,156) | |
Income tax expense | - | - | |
Loss for the period from continuing operations attributable to equity holders of the parent | (315,467) | (218,156) | |
Other comprehensive income | |||
Items that may be subsequently reclassified to profit or loss | |||
Currency translation differences | (150,749) | 98,041 | |
Total comprehensive income for the period attributable to equity holders of the parent | (466,216) | (120,115) | |
Loss per share from continuing operations attributable to the equity holders of the parent | |||
Basic and diluted (pence per share) | 6 | (0.033) | (0.029) |
CONDENSED CONSOLIDATED BALANCE SHEET
Notes | 30 June 2014 Unaudited £ | 31 December 2013 Audited £ | ||
Non-Current Assets | ||||
Property, plant and equipment | 3,453 | 4,855 | ||
Intangible assets | 5 | 3,392,526 | 3,283,233 | |
Investment in subsidiaries | - | - | ||
3,395,979 | 3,288,088 | |||
Current Assets | ||||
Trade and other receivables | 52,947 | 84,011 | ||
Cash and cash equivalents | 1,502,406 | 2,144,697 | ||
1,555,353 | 2,228,708 | |||
Total Assets | 4,951,332 | 5,516,796 | ||
Current Liabilities | ||||
Trade and other payables | 25,835 | 125,082 | ||
Total Liabilities | 25,835 | 125,082 | ||
Net Assets | 4,925,497 | 5,391,714 | ||
Equity Attributable to Owners of the Parent | ||||
Share capital | - | - | ||
Share premium account | 25,601,551 | 25,601,551 | ||
Reverse acquisition reserve | (18,845,147) | (18,845,147) | ||
Share based payments reserve | 23,409 | 23,409 | ||
Foreign currency translation reserve | (260,510) | (109,760) | ||
Retained losses | (1,593,806) | (1,278,339) | ||
Total Equity | 4,925,497 | 5,391,714 |
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
Attributable to Owners of the Parent | ||||||||||
Share premium £ | Shares to be issued £ | Share based payments reserve £ | Reverse acquisition reserve £ | Foreign currency translation reserve £ | Retained losses £ | Total equity £ |
| |||
Balance as at 1 January 2013 (as previously reported) | 23,674,771 | - | 79,646 | (18,845,147) | (127,808) | (1,163,001) | 3,618,461 |
| ||
Prior period adjustment - Note 10 | - | - | - | - | - | 322,064 | 322,064 |
| ||
Balance as at 1 January 2013 (as restated) | 23,674,771 | - | 79,646 | (18,845,147) | (127,808) | (840,937) | 3,940,525 |
| ||
Comprehensive income |
| |||||||||
Loss for the period (as restated) | - | - | - | - | - | (218,156) | (218,156) |
| ||
Other comprehensive income |
| |||||||||
Currency translation differences | - | - | - | - | 98,041 | - | 98,041 |
| ||
Total comprehensive income | - | - | - | - | 98,041 | (218,156) | (120,115) |
| ||
Subscription of ordinary shares | - | - | - | - | - | - | - |
| ||
Share based payments | 4,000 | - | - | - | - | - | 4,000 |
| ||
Total transactions with owners, recognised directly in equity | 4,000 | - | - | - | - | - | 4,000 |
| ||
Balance as at 30 June 2013 | 23,678,771 | - | 79,646 | (18,845,147) | (29,767) | (1,059,093) | 3,824,410 |
| ||
Attributable to Owners of the Parent | ||||||||||
Share premium £ | Shares to be issued £ | Share based payments reserve £ | Reverse acquisition reserve £ | Foreign currency translation reserve £ | Retained losses £ | Total equity £ |
| |||
Balance as at 1 January 2014 | 25,601,551 | - | 23,409 | (18,845,147) | (109,760) | (1,278,339) | 5,391,714 |
| ||
Comprehensive income |
| |||||||||
Loss for the period | - | - | - | - | - | (315,467) | (315,467) |
| ||
Other comprehensive income |
| |||||||||
Currency translation differences | - | - | - | - | (150,750) | - | (150,750) |
| ||
Total comprehensive income | - | - | - | - | (150,750) | (315,467) | (466,217) |
| ||
Subscription of ordinary shares | - | - | - | - | - | - | - |
| ||
Total transactions with owners, recognised directly in equity | - | - | - | - | - | - | - |
| ||
Balance as at 30 June 2014 | 25,601,551 | - | 23,409 | (18,845,147) | (260,510) | (1,593,806) | 4,925,497 |
| ||
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
30 June 2014 Unaudited £ | 30 June 2013 Unaudited and restated £ | |||
Cash flows from operating activities | ||||
Loss before taxation | (315,467) | (218,156) | ||
Adjustments for: | ||||
Depreciation | 1,401 | 1,408 | ||
Finance income | (772) | (252) | ||
Share based payments | - | 4,000 | ||
Foreign exchange | (30,847) | (13,438) | ||
Decrease / (increase) in trade and other receivables | 31,063 | (16,791) | ||
Decrease in trade and other payables | (99,247) | (10,339) | ||
Net cash used in operations | (413,869) | (253,568) | ||
Cash flows from investing activities | ||||
Interest received | 772 | 252 | ||
Purchase of property, plant & equipment | - | - | ||
Additions to exploration and evaluation intangibles | (242,612) | (187,807) | ||
Net cash used in investing activities | (241,840) | (187,555) | ||
Cash flows from financing activities | ||||
Proceeds from borrowings | - | - | ||
Net cash from financing activities | - | - | ||
Net (decrease) / increase in cash and cash equivalents | (655,709) | (441,123) | ||
Cash and cash equivalents at beginning of period | 2,144,697 | 1,578,584 | ||
Exchange differences on cash | 13,418 | 1,950 | ||
Cash and cash equivalents at end of period | 1,502,406 | 1,139,411 |
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 AIM Market 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 2013, 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 2013 were approved by the Board of Directors on 26 March 2014. The report of the auditors on those financial statements was unqualified.
The 2014 interim financial report of the Company has not been audited but has been reviewed by the Company's auditor, PKF 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 2014.
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 2013 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, income and expenses, 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 2013 Annual Report and Financial Statements. Actual amounts may differ from these estimates. 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 2013 except for the impact of the adoption of the Standards and interpretations described below.
3.1 Changes in accounting policy and disclosures
(a) New and amended standards, and interpretations mandatory for the first time for the financial year beginning 1 January 2014.
Standard | Impact on initial application | Effective date | |||
IAS 27 | Separate financial statements | 1 January 2014 | |||
IAS 27 (amendment) | Separate financial statements - Investment entities | 1 January 2014 | |||
IAS 28 | Investments in associates and joint ventures | 1 January 2014 | |||
IAS 32 (amendment) | Offsetting financial assets and financial liabilities | 1 January 2014 | |||
IAS 36 (amendment) | Impairment of assets - Recoverable amount disclosures for non-financial assets | 1 January 2014 | |||
IAS 39 (amendment) | Novation of derivatives and continuation of hedge accounting | 1 January 2014 | |||
IFRS 10 | Consolidated financial statements | 1 January 2014 | |||
IFRS 10 (amendment) | Consolidated financial statements - Investment entities | 1 January 2014 | |||
IFRS 10 (amendment) | Consolidated financial statements - transition guidance | 1 January 2014 | |||
IFRS 11 | Joint arrangements | 1 January 2014 | |||
IFRS 11 (amendment) | Joint arrangements - transition guidance | 1 January 2014 | |||
IFRS 12 | Disclosure of interests in other entities | 1 January 2014 | |||
IFRS 12 (amendment) | Disclosure of interests in other entities - Investment entities | 1 January 2014 | |||
IFRS 12 (amendment) | Disclosure of interests in other entities - transition guidance | 1 January 2014 | |||
IFRIC 21 | Levies | 1 January 2014 | |||
The above pronouncements have been adopted for the first time this period and have not resulted in any material changes in the financial statements other than additional disclosures to the annual financial statements.
(b) New standards, amendments and interpretations issued but not effective for the financial year beginning 1 January 2014 and not early adopted
Standard | Impact on initial application | Effective date |
IAS 19 (amendment) | Defined benefit plans: employee contributions | 1 July 2014*1 |
IAS 16 and IAS 38 (Amendments) | Clarification of acceptable methods of depreciation and amortization | 1 January 2016*1 |
IFRS 11 (Amendment) | Accounting for acquisition of interests in joint operations | 1 January 2016*1 |
IFRS 14 | Regulatory deferral accounts | 1 January 2016*1 |
IFRS 15 | Revenue from contracts with customers | 1 January 2017*1 |
IFRS 2 (amendment) (annual improvements 2010-2012) | Share-based payment - Definition of 'vesting condition' | 1 July 2014*1 |
IFRS 3 (amendment) (annual improvements 2010-2012) | Business combinations - Accounting for contingent consideration in a business combination | 1 July 2014*1 |
IFRS 8 (amendment) (annual improvements 2010-2012) | Operating segments - Aggregation of operating segments and Reconciliation of the total of the reportable segments' assets to the entity's assets | 1 July 2014*1 |
IFRS 13 (amendment) (annual improvements 2010-2012) | Fair value measurement - Short-term receivables and payables | 1 July 2014*1 |
IAS 16 (amendment) (annual improvements 2010-2012) | Property, plant and equipment - Revaluation method - proportionate restatement of accumulated depreciation | 1 July 2014*1 |
IAS 24 (amendment) (annual improvements 2010-2012) | Related party disclosures - Key management personnel | 1 July 2014*1 |
IAS 38 (amendment) (annual improvements 2010-2012) | Intangible assets - Revaluation method - proportionate restatement of accumulated amortization | 1 July 2014*1 |
IFRS 1 (amendment) (annual improvements 2011-2013) | First time adoption of International Financial Reporting Standards - Meaning of effective IFRSs | 1 July 2014*1 |
IFRS 3 (amendment) (annual improvements 2011-2013) | Business Combinations - Scope of exception for joint ventures | 1 July 2014*1 |
IFRS 13 (amendment) (annual improvements 2011-2013) | Fair value measurement - Scope of paragraph 52 (portfolio exception) | 1 July 2014*1 |
IAS 40 (amendment) (annual improvements 2011-2013) | Investment property - Clarifying the interrelationship of IFRS 3 and IAS 40 when classifying property as investment property or owner-occupied property | 1 July 2014*1 |
IAS 16 and IAS 41 (Amendments) | Property, plant and equipment and Agriculture: Bearer Plants | 1 January 2016*1 |
IAS 27 (Amendment 2014) | Equity method in separate financial statements | 1 January 2016*1 |
IAS 39, IFRS 7 and IFRS 9 (amendment November 2013) | Hedge accounting | 1 January 2018 |
IFRS 9 | Financial instruments | 1 January 2018*1 |
IFRS 7 and 9 (amendment December 2011) | Mandatory effective date and transition disclosures | 1 January 2018 |
*1 Not yet endorsed by the EU
The Group is evaluating the impact of the new and amended standards above. The Directors believe that these new and amended standards are not expected to have a material impact on the Group's results or shareholders' funds.
4. Dividends
No dividend has been declared or paid by the Company during the six months ended 30 June 2014 (2013: 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 2014 | 3,283,233 |
Additions | 242,612 |
Exchange rate variances | (133,319) |
As at 30 June 2014 | 3,392,526 |
Exploration and evaluation assets are acquired.
6. Loss per Share
The calculation of the total basic loss per share of 0.033 pence (2013 Restated: 0.029 pence) is based on the loss attributable to equity owners of the parent company of £315,467 (2013 Restated: £218,156) and on the weighted average number of ordinary shares of 956,439,377 (2013: 754,400,282) in issue during the period.
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 2013.
7. Fair value estimation
There are no financial instruments carried at fair value.
8. Fair value of financial assets and liabilities measured at amortised costs
Financial assets and liabilities comprise the following:
· Trade and other receivables
· Cash and cash equivalents
· Trade and other payables
The fair values of these items equate to their carrying values as at the reporting date.
9. Commitments
All commitments remain as stated in the Group's Annual Financial Statements for the year ended 31 December 2013.
10. Retrospective restatement
In 2013 the Group changed the way exploration expenditure is classified on consolidation. Previously the portion of salaries and travel from the parent remained on the income statement (after elimination of intercompany transactions), but is now capitalised within intangibles. The financial statements of 2011, 2012 and 2013 have been restated to reflect this reclassification. The effect of the restatement on those financial statements is summarised below. There is no effect on the Company and no effect on the Group in 2014.
Group | Effect on 2012 £ | Effect on 2011 £ | Effect on 2013 £ | Effect Total £ |
Decrease in administrative expenses | (208,624) | (113,440) | (103,325) | (425,389) |
(Decrease) in loss | (208,624) | (113,440) | (103,325) | (425,389) |
Increase in intangibles | 208,624 | 113,440 | 103,325 | 425,389 |
Increase in equity | 208,624 | 113,440 | 103,325 | 425,389 |
Earnings per share in 2013 has been restated from 0.043 pence based on the reported loss in 2013 of £321,481 to 0.029 pence based on the restated loss of £218,156.
11. Approval of interim financial statements
The Condensed interim financial statements were approved by the Board of Directors on 22 August 2014.
Independent Review Report to Noricum Gold Limited
Introduction
We have been engaged by Noricum Gold Limitedto review the condensed set of Financial Statements in the half-yearly financial report for the six months ended 30 June 2014 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 2014 is not prepared, in all material respects, in accordance with the AIM Rules for Companies.
PKF Littlejohn LLP
Chartered Accountants and Registered Auditors
1 Westferry Circus
Canary Wharf
London
E14 4HD
22 August 2014