Last checked at 25 May 2018 07:00
Keras Resources plc / Index: AIM / Epic: KRS / Sector: Mining
25 May 2018
Keras Resources plc
("Keras" or the "Company")
Interim Results
Keras Resources plc, the AIM listed mineral resource company, is pleased to announce its interim results for the six months ended 31 March 2018.
Highlights
· Building a strategic portfolio of value accretive and cash generative resource assets
· Focused on developing manganese assets in Togo into a producing mine - opportunity to develop a low-capex, 250,000tpa open pit, 38% manganese product operation
· Clear value upside from significant interest in ASX Listed Calidus Resources Limited which has a highly prospective gold exploration portfolio in Australia
o The Company's £15.85m carrying value for its interest in Calidus equates to a share price of approximately 0.7GBp, compared to the Company's market capitalisation of £7.01m as at 24 May 2018, which represents an upside potential of approximately 126%.
· Loss from Continuing Operations has reduced from £706,000 (GBp0.106 per share) to 177,000 (GBp0.008p per share) for the previous period highlighting the significant reduction in corporate overheads and management costs
· Streamlined corporate structure, underpinned by the significant asset value attributable to Keras' interest in Calidus, provides Keras with a platform to grow the Company by identifying and investing in near term cash generative projects while releasing the inherent value in Keras' current Togo assets
Chairman's Statement
Our energies during the period and subsequently have centred on rationalising our corporate structure and overheads in order to streamline and position the Company to focus on building a portfolio of complementary exploration and development interests through which to deliver meaningful and tangible value to shareholders.
The key development of 2017 was the successful flotation of the Company's Australian gold interests on the Australian Stock Exchange ('ASX') under the name of Calidus Resources Limited ('Calidus') in June 2017, and our interest in Calidus remains a significant value driver. However, following its IPO on the ASX, our attentions have increasingly turned to developing the other areas of the business - namely our interests in Togo, on which I will elaborate on in further detail below.
Our interest in Calidus remains a core pillar of our investment proposition and currently underpins our market capitalisation. Under the rules of the ASX the Company's shares in Calidus are held in escrow for a two year period which will end on 23 June 2019, and the intention of the Directors is to distribute those shares to Keras shareholders at that time, subject to any Calidus shares which may be realised to provide working capital. The milestone for the conversion of the first tranche of performance shares to ordinary shares, the announcement of a JORC compliant Indicated or Measured Resource of at least 500,000oz of gold, was achieved in December 2017 as announced by RNS on 18 December 2017. Statements by Calidus indicate that the milestone for conversion of the balance of the performance shares, the announcement of a positive pre-feasibility study, which seeks to demonstrate that the project is commercially viable, is likely to be achieved by the end of the escrow period.
It is important to recognise that the Calidus shares have consistently traded at between A$0.040 and A$0.048 per share in the past three months. At that level the value of Keras' holding in Calidus remains approximately double the Keras market cap, despite the fact that Keras is now debt free.
As described above, having capitalised our gold interests, we are concentrating on the Nayega Manganese Project ('Nayega") in Togo, West Africa, where we hold an 85% interest in Société Générale des Mines SARL (SGM) which holds the exploration permits for Nayega. We believe Nayega offers significant upside, particularly given the positive price performance of manganese over the past 18 months. Whilst we await the award of the Exploitation Licence from the Togolese Ministry of Mines, we have started to update the 2015 internal feasibility study with specific emphasis on reducing the capital intensity of the project by investigating alternative ore sorting technology suited to the Nayega ore. We continue to maintain an open dialogue with potential industry partners with the view to secure development and working capital funding through a combination of offtake and stockpile financing to assist in the development of Nayega.
Board and adviser changes
Since the end of the period, Russell Lamming has been appointed Chief Executive Officer and tasked with moving Nayega forward, as well as seeking other projects for the Company. Dave Reeves, who is the MD of Calidus, has become a non-executive director of Keras. He and I have reduced our director's fees to half the agreed level, £12,000 and £15,000 per annum respectively, to preserve cash pending increased levels of activity.
Since the end of the period we have appointed SP Angel as our Nominated Adviser and joint broker. I would like to thank our previous Nominated Adviser and joint brokers, Northland Capital Partners and Shard Capital Partners respectively, for their efforts on our behalf.
New Corporate Website and Presentation
The Company also announces that a new corporate website is now live and a new corporate presentation. Both of which will be available to view using the following link: www.kerasplc.com
Outlook
With the end of the escrow period for the Calidus shares only some 12 months away, we have commenced planning for the most efficient way to distribute the Calidus shares as well as proposals as to how shareholders can efficiently hold and deal with ASX shares. Information on such proposals will be provided in due course, and the transaction is likely to be subject to shareholder approval.
Developing our manganese assets in Togo into a producing mine has now become an operational priority. In addition, the Company is focussing on identifying new projects to add to our portfolio with a focus on near term, cash generative opportunities and we look forward to presenting shareholders with updates on these developments in due course.
Brian Moritz
Chairman
25 May 2018
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED 31 MARCH 2018
|
31-Mar-18 (unaudited) £'000 |
31-Mar-17 (unaudited) £'000 |
30-Sep-17 (audited) £'000 | |||||||||
Continuing operations | ||||||||||||
Revenue | - | - | - | |||||||||
Cost of sales | - | - | - | |||||||||
Gross profit | - | - | - | |||||||||
Administrative and exploration expenses | (177) | (456) | (938) | |||||||||
Loss from operating activities | (177) | (456) | (938) | |||||||||
Finance income | - | - | - | |||||||||
Finance costs | - | (250) | (309) | |||||||||
Net finance costs | - | (250) | (309) | |||||||||
Impairment of assets | - | - | - | |||||||||
Loss before taxation | (177) | (706) | (1,247) | |||||||||
Taxation | - | - | - | |||||||||
Loss from continuing operations | (177) | (706) | (1,247) | |||||||||
Discontinued operations | ||||||||||||
(Loss)/profit from discontinued operations, net of tax | 7 | - | (440) | 5,142 | ||||||||
(Loss)/profit | (177) | (1,146) | 3,895 | |||||||||
Other comprehensive income - items that may be subsequently reclassified to profit or loss | ||||||||||||
Exchange translation on foreign operations | (5) | (162) | (160) | |||||||||
Change in fair value of available for sale financial assets | (4,534) | - | 13,915 | |||||||||
Other comprehensive (loss)/income for the period, net of tax | (4,539) | (162) | 13,755 | |||||||||
Total comprehensive (loss)/income for the period | (4,716) | (1,308) | 17,650 | |||||||||
(Loss)/profit attributable to: | ||||||||||||
Owners of the Company | (174) | (2,055) | 3,300 | |||||||||
Non-controlling interests | (3) | 909 | 595 | |||||||||
(Loss)/profit for the period | (177) | (1,146) | 3,895 | |||||||||
Total comprehensive income/(loss) attributable to: | ||||||||||||
Owners of the Company | (4,712) | (2,196) | 17,055 | |||||||||
Non-controlling interests | (4) | 888 | 595 | |||||||||
Total comprehensive loss for the period | (4,716) | (1,308) | 17,650 | |||||||||
Earnings per share - continuing and discontinued operations | ||||||||||||
Basic and diluted (loss)/earnings per share (pence) | (0.008) | (0.135) | 0.183 | |||||||||
From continuing operations | ||||||||||||
Basic and diluted loss per share (pence) | (0.008) | (0.106) | (0.103) | |||||||||
From discontinued operations | ||||||||||||
Basic and diluted earnings/(loss) per share (pence) | 0.00 | (0.029) | 0.286 | |||||||||
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2018
Notes | 31-Mar-18 (unaudited) £'000 | 31-Mar-17 (unaudited) £'000 | 30-Sep-17 (audited) £'000 | |||||||||
Assets | ||||||||||||
Non-current assets | ||||||||||||
Intangible assets | 8 | 1,168 | 3,491 | 1,164 | ||||||||
Property, plant and equipment | 9 | 5 | 41 | 6 | ||||||||
Trade and other receivables | 10 | - | 29 | - | ||||||||
Other investments | 11 | 15,846 | - | 20,379 | ||||||||
17,019 | 3,561 | 21,549 | ||||||||||
Current assets | ||||||||||||
Trade and other receivables | 10 | 15 | 26 | 31 | ||||||||
Cash and cash equivalents | 122 | 143 | 60 | |||||||||
137 | 169 | 91 | ||||||||||
Total assets | 17,156 | 3,730 | 21,640 | |||||||||
Equity | ||||||||||||
Equity attributable to owners of the Company | ||||||||||||
Share capital | 12 | 7,037 | 6,494 | 6,970 | ||||||||
Share premium | 12 | 10,283 | 8,849 | 10,107 | ||||||||
Other reserves | 8,959 | (31) | 13,779 | |||||||||
Retained deficit | (9,338) | (14,591) | (9,446) | |||||||||
16,941 | 721 | 21,410 | ||||||||||
Non-controlling interests | (121) | (142) | (117) | |||||||||
Total equity | 16,820 | 579 | 21,293 | |||||||||
Liabilities | ||||||||||||
Current liabilities | ||||||||||||
Loans and borrowings | 13 | - | 2,011 | - | ||||||||
Trade and other payables | 14 | 336 | 1,140 | 347 | ||||||||
336 | 3,151 | 347 | ||||||||||
Total liabilities | 336 | 3,151 | 347 | |||||||||
Total equity and liabilities | 17,156 | 3,730 | 21,640 | |||||||||
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 31 MARCH 2017
Total attributable to owners of the Company | |||||||||||||||||
Share capital £'000 |
Share premium £'000 | Share option/ warrant reserve £'000 |
Foreign exchange reserve £'000 |
Retained deficit £'000 |
Total £'000 |
Non-controlling interests £'000 |
Total equity £'000 |
| |||||||||
| |||||||||||||||||
Balance at 1 October 2016 (audited) | 6,123 | 7,666 | 66 | (405) | (12,387) | 1,063 | (730) | 333 |
| ||||||||
| |||||||||||||||||
| |||||||||||||||||
Loss for the period | - | - | - | - | (2,055) | (2,055) | 909 | (1,146) |
| ||||||||
Other comprehensive income | - | - | - | (45) | (96) | (141) | (21) | (162) |
| ||||||||
Total comprehensive loss for the period | - | - | - | (45) | (2,151) | (2,196) | 888 | (1,308) |
| ||||||||
| |||||||||||||||||
| |||||||||||||||||
Issue of ordinary shares | 371 | 1,219 | - | - | - | 1,590 | - | 1,590 |
| ||||||||
Issue costs | - | (36) | - | - | - | (36) | - | (36) |
| ||||||||
Disposal of subsidiaries with NCI | - | - | - | 353 | (53) | 300 | (300) | - |
| ||||||||
371 | 1,183 | - | 353 | (53) | 1,854 | (300) | 1,554 |
| |||||||||
| |||||||||||||||||
Balance at 31 March 2017 (unaudited) | 6,494 | 8,849 | 66 | (97) | (14,591) | 721 | (142) | 579 |
| ||||||||
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (CONTINUED)
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2017
Total attributable to owners of the Company | |||||||||||||||||||
Share capital £'000 |
Share premium £'000 | Share option/ warrant reserve £'000 |
Exchange reserve £'000 |
Available for sale reserve £'000 |
Retained deficit £'000 |
Total £'000 |
Non-controlling interests £'000 |
Total equity £'000 | |||||||||||
Balance at 1 April 2017 (unaudited) | 6,494 | 8,849 | 66 | (97) | - | (14,591) | 721 | (142) | 579 | ||||||||||
Profit for the period | - | - | - | 359 | - | 4,996 | 5,355 | (314) | 5,041 | ||||||||||
Other comprehensive income | - | - | - | (115) | 13,915 | 96 | 13,896 | 21 | 13,917 | ||||||||||
Total comprehensive income for the period | - | - | - | 244 | 13,915 | 5,092 | 19,251 | (293) | 18,958 | ||||||||||
Issue of ordinary shares | 476 | 1,258 | - | - | - | - | 1,734 | - | 1,734 | ||||||||||
Reverse disposal of subsidiaries with NCI | - | - | - | (353) | - | 53 | (300) | 300 | - | ||||||||||
Goodwill | - | - | - | 4 | - | - | 4 | 18 | 22 | ||||||||||
476 | 1,258 | - | (349) | - | 53 | 1,438 | 318 | 1,756 | |||||||||||
Balance at 30 September 2017 (audited) | 6,970 | 10,107 | 66 | (202) | 13,915 | (9,446) | 21,410 | (117) | 21,293 | ||||||||||
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (CONTINUED)
FOR THE SIX MONTHS ENDED 31 MARCH 2018
Total attributable to owners of the Company | ||||||||||||||||||
Share capital £'000 |
Share premium £'000 | Share option/ warrant reserve £'000 |
Exchange reserve £'000 |
Available for sale reserve £'000 |
Retained deficit £'000 |
Total £'000 |
Non- controlling interests £'000 |
Total equity £'000 | ||||||||||
Balance at 1 October 2017 (audited) | 6,970 | 10,107 | 66 | (202) | 13,915 | (9,446) | 21,410 | (117) | 21,293 | |||||||||
Loss for the period | - | - | - | (288) | - | 114 | (174) | (3) | (177) | |||||||||
Total other comprehensive income | - | - | - | (968) | (3,564) | (6) | (4,538) | (1) | (4,539) | |||||||||
Total comprehensive loss for the period | - | - | - | (1,256) | (3,564) | 108 | (4,712) | (4) | (4,716) | |||||||||
Issue of ordinary shares | 67 | 183 | - | - | - | - | 250 | - | 250 | |||||||||
Issue costs | - | (7) | - | - | - | - | (7) | - | (7) | |||||||||
67 | 176 | - | - | - | - | 243 | - | 243 | ||||||||||
Balance at 31 March 2018 (unaudited) | 7,037 | 10,283 | 66 | (1,458) | 10,351 | (9,338) | 16,941 | (121) | 16,820 | |||||||||
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED 31 MARCH 2018
| 31-Mar-18 (unaudited) £'000 | 31-Mar-17 (unaudited) £'000 | 30-Sep-17 (audited) £'000 | |||||||||
Cash flows from operating activities | ||||||||||||
Loss from operating activities | (177) | (456) | (938) | |||||||||
Loss from discontinued operating activities | - | (440) | (504) | |||||||||
Adjustments for: | ||||||||||||
Depreciation and amortisation | 4 | 72 | 4 | |||||||||
Impairment | - | - | 1,119 | |||||||||
Loss on disposal of property, plant and equipment | - | 15 | - | |||||||||
Foreign exchange differences | (3) | (221) | (490) | |||||||||
Equity-settled share-based payment transactions | - | - | - | |||||||||
(176) | (1,030) | (809) | ||||||||||
Changes in: | ||||||||||||
- inventories | - | 604 | 558 | |||||||||
- trade and other receivables | 16 | 174 | 184 | |||||||||
- trade and other payables | (11) | (685) | (307) | |||||||||
Cash used in operating activities | (171) | (937) | (374) | |||||||||
Finance income | - | - | - | |||||||||
Finance cost | - | (99) | (21) | |||||||||
Taxes paid | - | (69) | (118) | |||||||||
Net cash used in operating activities | (171) | (1,105) | (513) | |||||||||
Cash flows from investing activities | ||||||||||||
Cash disposed of with subsidiary | - | - | (11) | |||||||||
Acquisition of property, plant and equipment | (3) | (2) | (2) | |||||||||
Proceeds from sale of property, plant and equipment | - | - | - | |||||||||
Exploration and licence expenditure | (7) | (847) | (1,511) | |||||||||
Net cash used in investing activities | (10) | (849) | (1,524) | |||||||||
Cash flows from financing activities | ||||||||||||
Net proceeds from issue of share capital | 243 | 600 | 1,130 | |||||||||
Proceeds from short term borrowings | - | 1,362 | 833 | |||||||||
Net cash flows from financing activities | 243 | 1,962 | 1,963 | |||||||||
Net (decrease)/increase in cash and cash equivalents | 62 | 8 | (74) | |||||||||
Cash and cash equivalents at beginning of period | 60 | 134 | 134 | |||||||||
Cash acquired with subsidiary | - | 1 | - | |||||||||
Effect of foreign exchange rate changes | - | - | - | |||||||||
Cash and cash equivalents at end of period | 122 | 143 | 60 | |||||||||
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 31 MARCH 2018
1. Reporting entity
Keras Resources plc (the "Company") is a company domiciled in England and Wales. The condensed consolidated interim financial statements of the Company as at and for the six months ended 31 March 2018 comprise the Company and its subsidiaries (together referred to as the "Group") and the Group's interests in associates and jointly controlled entities. The Group currently operates as an explorer and developer.
2. Basis of preparation
(a) Statement of compliance
This condensed consolidated interim financial report has been prepared in accordance with IAS 34 Interim Financial Reporting. Selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in financial performance and position of the Group since the last annual consolidated financial statements as at and for the year ended 30 September 2017. This condensed consolidated interim financial report does not include all the information required for full annual financial statements prepared in accordance with International Financial Reporting Standards.
This condensed consolidated interim financial report was approved by the Board of Directors on 24 May 2018.
(b) Judgements and estimates
Preparing the interim financial report requires Management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.
In preparing this condensed consolidated interim financial report, significant judgements made by Management in applying the Group's accounting policies and key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements as at and for the year ended 30 September 2017.
3. Significant accounting policies
The accounting policies applied by the Group in this condensed consolidated interim financial report are the same as those applied by the Group in its consolidated financial statements as at and for the year ended 30 September 2017.
4. Financial instruments
Financial risk management
The Group's financial risk management objectives and policies are consistent with those disclosed in the consolidated financial statements as at and for the year ended 30 September 2017.
5. Segment information
The Group considers that it now operates in one distinct business areas, being that of manganese and cobalt exploration in West Africa. This business areas form the basis of the Group's operating segments. For each segment, the Group's Managing Director (the chief operating decision maker) reviews internal management reports on at least a quarterly basis.
Other operations relate to the group's administrative functions conducted at its head office and by its intermediate holding company together with consolidation adjustments.
Information regarding the results of each reportable segment is included below. Performance is measured based on segment profit before tax, as included in the internal management reports that are reviewed by the Group's Managing Director. Segment results are used to measure performance as Management believes such information is the most relevant in evaluating the performance of certain segments relative to other entities that operate within the exploration industry.
For the six months ended 31 March 2018 (unaudited)
Discontinued Gold £'000 | Discontinued Iron Ore £'000
|
Manganese £'000 | Other Segments £'000 |
Total £'000
| |||||||||
External revenue | - | - | - | - | - | ||||||||
Loss before tax | - | - | (22) | (155) | (177) | ||||||||
Segment assets | - | - | 851 | 16,305 | 17,156 | ||||||||
For the six months ended 31 March 2017 (unaudited)
| |||||||||||||
Discontinued Gold £'000 | Discontinued Iron Ore £'000
|
Manganese £'000 | Other Segments £'000 |
Total £'000
| |||||||||
External revenue | 941 | - | - | - | 941 | ||||||||
Loss before tax | (437) | (3) | (34) | (672) | (1,146) | ||||||||
Segment assets | 2,667 | - | 559 | 504 | 3,730 | ||||||||
Discontinued Gold £'000 | Discontinued Iron Ore £'000
|
Manganese £'000 | Other Segments £'000 |
Total £'000
| |||||
External revenue | 1,008 | - | - | - | 1,008 | ||||
Loss before tax | (472) | (32) | (66) | (1,181) | (1,751) | ||||
Segment assets | - | - | 853 | 20,787 | 21,640 | ||||
Information about geographical segments:
| |||||||||
For the six months ended 31 March 2018 (unaudited)
Discontinued Australia £'000 | Discontinued South Africa £'000
| West Africa £'000 | Other Segments £'000 |
Total £'000
|
| ||||||||||||
External revenue | - | - | - | - | - |
| |||||||||||
| |||||||||||||||||
Loss before tax | - | - | (22) | (155) | (177) |
| |||||||||||
| |||||||||||||||||
Segment assets | - | - | 851 | 16,305 | 17,156 |
| |||||||||||
For the six months ended 31 March 2017 (unaudited)
| |||||||||||||||||
Discontinued Australia £'000 | Discontinued South Africa £'000
| West Africa* £'000 | Other Segments £'000 |
Total £'000
|
| ||||||||||||
External revenue | 941 | - | - | - | 941 |
| |||||||||||
| |||||||||||||||||
Loss before tax | (437) | - | (37) | (672) | (1,146) |
| |||||||||||
| |||||||||||||||||
Segment assets | 2,667 | - | 559 | 504 | 3,730 |
| |||||||||||
| |||||||||||||||||
*Information regarding West Africa includes £3,000 loss and £nil segment assets relating to discontinued activities. | |||||||||||||||||
Information about geographical segments (continued): |
| |||||||||||||
For the twelve months ended 30 September 2017 (audited)
|
| |||||||||||||
| Discontinued Australia £'000 | Discontinued South Africa £'000
| West Africa* £'000 | Other Segments £'000 |
Total £'000
| |||||||||
External revenue | 1,008 | - | - | - | 1,008 | |||||||||
Loss before tax | (472) | (8) | (80) | (1,191) | (1,751) | |||||||||
Segment assets | - | - | 853 | 20,787 | 21,640 | |||||||||
| ||||||||||||||
*Information regarding West Africa includes £14,000 loss before tax and £nil segment assets relating to discontinued activities.
|
| |||||||||||||
6. Seasonality of operations
The Group is not considered to be subject to seasonal fluctuations.
7. Discontinued operations
On 21 March 2018, an application was made to strike off the Group's dormant subsidiary, Ferrex Manganese Limited.
The comparative consolidated statement of profit or loss has been represented to show the discontinued operations separately from continuing operations. Analysis of the result of discontinued operations is as follows:
Results of discontinued operations
| 6 months 31-Mar-18 (unaudited) £'000 | 6 months 31-Mar-17 (unaudited) £'000 | 12 months 30-Sep-17 (audited) £'000 | |||||||||
Revenue (external) | - | 941 | 1,008 | |||||||||
Expenses | - | (1,381) | (1,512) | |||||||||
Results from operating activities | - | (440) | (504) | |||||||||
Income tax | - | - | - | |||||||||
Results from operating activities, net of tax | - | (440) | (504) | |||||||||
Gain on sale of discontinued operation | - | - | 5,646 | |||||||||
(Loss)/profit from discontinued operations, net of tax | - | (440) | 5,142 | |||||||||
The discontinued operations did not have a tax impact.
8. Intangible assets
| 6 months 31 Mar 18 (unaudited) £'000 | 6 months 31 Mar 17 (unaudited) £'000
| 12 months 30 Sep 17 (audited) £'000 | |||||||||
Cost | ||||||||||||
Balance at beginning of period | 1,551 | 6,686 | 6,686 | |||||||||
Additions | 7 | 1,631 | 2,122 | |||||||||
Disposals Effect of movement in exchange rates | - (3) | (4,705) 60 | (7,293) 36 | |||||||||
Balance at end of period | 1,555 | 3,672 | 1,551 | |||||||||
Impairment losses | ||||||||||||
Balance at beginning of period | 387 | 4,645 | 4,645 | |||||||||
Impairment | - | - | 389 | |||||||||
Amortisation | - | 65 | - | |||||||||
Disposals | - | (4,532) | (4,643) | |||||||||
Effect of movement in exchange rates | - | 3 | (4) | |||||||||
Balance at end of period | 387 | 181 | 387 | |||||||||
Carrying amounts | ||||||
Balance at end of period | 1,168 | 3,491 | 1,164 | |||
Balance at beginning of period | 1,164 | 2,041 | 2,041 | |||
Intangible assets comprise the fair value of prospecting and exploration rights.
9. Property, plant and equipment
Acquisitions and disposals
During the six months ended 31 March 2018 the Group acquired assets with a cost of £3,000 (six months ended 31 March 2017: £10,000, twelve months ended 30 September 2017: £10,000).
Assets with a carrying amount of £nil were disposed of during the six months ended 31 March 2018 (six months ended 31 March 2017: £15,000; twelve months ended 30 September 2017: £53,000), resulting in a loss on disposal of £nil (six months ended 31 March 2017: £15,000; twelve months ended 30 September 2017: £23,000), which is included in 'administrative expenses' in the condensed consolidated statement of comprehensive income.
10. Trade and other receivables
| 31-Mar-18 (unaudited) £'000 | 31-Mar-17 (unaudited) £'000 | 30-Sep-17 (audited) £'000 | |||||||||
Other receivables | 15 | 41 | 3 | |||||||||
Prepayments | - | 14 | 28 | |||||||||
15 | 55 | 31 | ||||||||||
Trade receivables and other receivables are stated at their nominal values less allowances for non recoverability.
11. Other investments
| 31-Mar-18 (unaudited) £'000 | 31-Mar-17 (unaudited) £'000 | 30-Sep-17 (audited) £'000 | |||||||||
Equity securities - available for sale | ||||||||||||
Brought forward | 20,379 | - | - | |||||||||
Shares acquired on disposal of subsidiary | - | - | 6,661 | |||||||||
Gain/(deficit) recognised in equity | (4,533) | - | 13,718 | |||||||||
15,846 | - | 20,379 | ||||||||||
Equity securities represent ordinary and performance shares in Calidus Resources Limited ("Calidus"), a company listed on the Australian Securities Exchange ("ASX"). These shares have been re-measured to fair value through other comprehensive income. Fair value is the mid-market price of Calidus ordinary shares on the ASX, discounted in the case of performance shares to reflect the possibility that the milestones for conversion to ordinary shares will not be achieved. Under ASX rules, these shares are held in escrow until June 2019. Available for sale assets are denominated in Australian dollars.
The deficit of £4,533,000 is made up of a reduction from A$0.054 to A$0.043 in the market value of Calidus shares on the ASX, together with a reduction in the value of the Australian dollar against sterling, partly mitigated by the achievement of the first milestone converting certain performance shares to ordinary shares.
12. Share capital and reserves
Issue of ordinary shares
On 23 October 2017, 66,666,667 ordinary shares were issued for cash at £0.00375 per share.
Dividends
No dividends were declared or paid in the six months ended 31 March 2018 (six months ended 31 March 2017: £nil, twelve months ended 30 September 2017: £nil).
13. Loans and borrowings
| 31-Mar-18 (unaudited) | 31-Mar-17 (unaudited) | 30-Sep-17 (audited) | |||||||||
£'000 | £'000 | £'000 | ||||||||||
Unsecured loan notes - 10% | - | 314 | - | |||||||||
Non-convertible loan | - | 133 | - | |||||||||
Acquisition finance facility | - | 1,564 | - | |||||||||
- | 2,011 | - | ||||||||||
14. Trade and other payables
| 31-Mar-18 (unaudited) | 31-Mar-17 (unaudited) | 30-Sep-17 (audited) | |||||||||
£'000 | £'000 | £'000 | ||||||||||
Trade payables | - | 471 | 1 | |||||||||
Accruals Other payables | 104 232 | 618 51 | 138 208 | |||||||||
336 | 1,140 | 347 | ||||||||||
There is no material difference between the fair value of trade and other payables and their book value. Other payables include £148,000 in respect of the Share Appreciation Right Scheme.
This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014.
**ENDS**
For further information please visit www.kerasplc.com, follow us on Twitter @kerasplc or contact the following:
Russell Lamming | Keras Resources plc | russell@kerasplc.com
|
Nominated Adviser / Joint Broker Ewan Leggat / Charlie Bouverat
| SP Angel Corporate Finance LLP | +44 (0) 20 3470 0470
|
Financial PR Susie Geliher / Charlotte Page | St Brides Partners Ltd | +44 (0) 20 7236 1177 |
Notes
Keras Resources plc is focused on building a strategic portfolio of resource assets. The Company provides investors with exposure to a strategic portfolio of development assets, including manganese, cobalt and nickel in Togo, West Africa, and also has a significant interest in a highly prospective gold exploration and development portfolio in Australia.
Keras benefits from a highly skilled management team, which has extensive operational experience in Africa and Australia with proven success in advancing assets up the value curve.