Last checked at 28 Sep 2011 11:15
28 September 2011
Athol Gold Limited
(the "Company")
Unaudited Interim Results for the Six Months Ended 30 June 2011
Athol Gold Limited today announces its unaudited interim results for the six months ended 30 June 2011.
Chairman's Review
The modest decrease in NAV per share from 0.64p to 0.54p is disappointing but reflects the weak market in mining juniors. We expect this market to change. Gold has dipped in recent days as a result of yet more margin hikes on COMEX and the SME. But you cannot buck inexorable market forces forever.
There has been some talk of deflationary threats. But we remain convinced that the leaders of the West do not believe in the invisible hand of capitalism and will not allow banks to fail or force workers to work harder for less money as they should. As such the printing presses will soon be whirring into action once again and gold will head sharply higher and that will, we believe, drive a material re-rating of our carefully selected portfolio.
We note that there are some 40 investment companies listed on AIM and PLUS with funds under management of less than £10 million. At this size and with the high fixed costs of a publicly quoted company few can deliver a return for shareholders. We accept that Athol needs to increase its assets under management in order to reach what we deem to be critical mass. We aim to do this in a way that does not dilute shareholders and we will be outlining our plans shortly.
As such we approach the future with confidence and excitement.
On behalf of the board
Jennifer Allsop
Chairman
For further information please call:
Athol Gold LimitedJennifer Allsop Executive Chairman
| +44 7788 451744 | |
Libertas CapitalSandy Jamieson | +44 207 569 9650 | |
Rivington Street Corporate Finance Limited Jon Levinson / Dru Edmonstone |
+ 44 20 7628 2200 | |
Bishopsgate Communications Limited Nick Rome |
+44 20 7562 3366 | |
Statement of comprehensive Income
for the 6 months ended 30 June 2011
UNAUDITED | UNAUDITED | AUDITED | ||
6 months to 30 June 2011 | 6 months to 30 June 2010 | 12 months to 31 December 2010 | ||
£'000 | £'000 | £'000 | ||
Continuing operations: | ||||
Net gains on disposal of investments | 66 | - | 23 | |
Change in fair value of investments | (466) | (3) | 1,525 | |
Other income | - | 23 | - | |
Total income | (400) | 20 | 1,548 | |
Operating expenses | (174) | (80) | (483) | |
Operating (loss)/profit | (574) | (60) | 1,065 | |
Finance income | - | (2) | (2) | |
(Loss)/profit before taxation | (574) | (62) | 1,063 | |
Taxation expense | - | - | - | |
(Loss)/profit for the period attributable to owners of the Company | (574) | (62) | 1,063 | |
(Loss)/earnings per share attributable to owners of the Company during the period |
pence |
pence |
pence | |
Basic: | (0.10) | (0.04) | 0.62 | |
Diluted: | (0.10) | (0.04) | 0.56 |
Statement of Financial Position
for the 6 months ended 30 June 2011
UNAUDITED | UNAUDITED | AUDITED | ||
30 June 2011 | 30 June 2010 | 31 December 2010 | ||
£'000 | £'000 | £'000 | ||
CURRENT ASSETS | ||||
Financial assets | 3,172 | - | 2,869 | |
Trade and other receivables | 22 | 85 | 28 | |
Cash and cash equivalents | 5 | 374 | 42 | |
3,199 | 459 | 2,939 | ||
CURRENT LIABILITIES | ||||
Trade and other payables | 69 | 202 | 290 | |
69 | 202 | 290 | ||
NET CURRENT ASSETS | 3,130 | 257 | 2,649 | |
NON-CURRENT LIABILITIES | ||||
Convertible unsecured loan notes | 37 | - | 137 | |
37 | - | 137 | ||
NET ASSETS | 3,093 | 257 | 2,512 | |
EQUITY | ||||
| Share capital | 1,438 | 344 | 981 | |
| Share premium | 3,581 | 2,391 | 2,838 | |
| Loan note equity reserve | - | - | 45 | |
| Capital reserve | 15,736 | 15,736 | 15,736 | |
Retained earnings | (17,662) | (18,214) | (17,088) | |
Equity attributable to owners of the Company and total equity | 3,093 | 257 | 2,512 |
Statement of Cash flow
for the 6 months ended 30 June 2011
UNAUDITED | UNAUDITED | AUDITED | ||
6 months to 30 June 2011 | 6 months to 30 June 2010 | 12 months to 31 December 2010 | ||
£'000 | £'000 | £'000 | ||
OPERATING ACTIVITIES | ||||
Profit/(Loss) before taxation | (574) | (62) | 1,063 | |
Adjustments for: | ||||
Share based payment charge | - | - | 1 | |
Profit on disposal of trading investments | (66) | - | (23) | |
Fair value adjustment on financial assets | 466 | 3 | (1,525) | |
Finance costs | - | - | 2 | |
Operating cashflow before working capital changes | (174) | (59) | (482) | |
(Decrease) in trade and other receivables | 6 | (71) | (12) | |
Increase/(decrease) in trade and other payables | (221) | 42 | 130 | |
Net cash outflow from operating activities | (389) | (88) | (364) | |
INVESTING ACTIVITIES | ||||
Purchases of investments | (1,170) | - | (1,548) | |
Disposals of investments | 467 | - | 227 | |
Net cash (outflow)/inflow from investing activities | (703) | - | (1,321) | |
FINANCING ACTIVITIES | ||||
Proceeds from share issues | 1,055 | - | 1,143 | |
Share issue expenses | - | - | (58) | |
Proceeds from issue of convertible loan notes | - | - | 180 | |
Net cash inflow from financing activities | 1,055 | - | 1,265 | |
Net (decrease)/increase in cash and cash equivalents | (37) | (88) | (420) | |
Cash and cash equivalents at start of period | 42 | 462 | 462 | |
Cash and cash equivalents at end of period | 5 | 374 | 42 |
Notes to the interim statement
for the 6 months ended 30 June 2011
1. General information
The Company is a limited company listed on AIM and is registered in the Cayman Islands.
The address of its registered office is Walker House, Mary Street, PO Box 908GT, George Town, Grand Cayman, Cayman Islands. The financial statements are presented in Pounds Sterling which is the Company's presentational currency.
2. Basis of preparation
The interim financial statements of Athol Gold Limited have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union (EU) and on the historical cost basis using the accounting policies which are consistence with those set out in the Company's Annual Report and Accounts for the year ended 31 December 2010.
This interim financial information for the six months to 30 June 2011 was approved by the board on 27 September 2011.
The unaudited interim financial information for period ended 30 June 2011 does not constitute statutory accounts.. The comparative figures for the year ended 31 December 2010 are extracted from the statutory financial statements which contain an unqualified audit report.
3. Earnings per share
The basic and diluted earnings per share is calculated by dividing the profit/(loss) attributable to owners of the Company by the weighted average number of ordinary shares in issue during the year. | ||||
6 months to 30 June 2011 | 6 months to 30 June 2010 | 12 months to 31 December 2010 | ||
£'000 | £'000 | £'000 | ||
Weighted average number of shares for calculating basic earnings per share | 563,008,758 | 137,401,194 |
171,156,251 | |
Weighted average number of shares for calculating fully diluted earnings per share | 563,008,758 | 137,401,194 | 190,070,885 | |
The diluted loss per share for the 6 months to 30 June 2010 and the 6 months to 30 June 2011 is the same as the basic loss per share as the losses in each period have an anti-dilutive effect.
4. Share capital
30 June 2011 | 30 June 2010 | 31 December 2010 | ||
£'000 | £'000 | £'000 | ||
Authorised (par value of 0.25p): | 4,000,000,000 | 4,000,000,000 | 4,000,000,000 | |
Issued and fully paid (par value of 0.25p each): | 573,339,681 | 137,401,194 | 392,284,866 | |
Between 11 January and 18 January 2011, 54,000,000 shares were issued at 0.25p each as a result of the conversion of loan notes Between 31 January and 3 February 2011, 72,996,988 shares were issued for cash at 0.83p each as the result of a private placing. On 21 February 2011, 32,901,200 shares were issued at 1p each as a result of the conversion of loan notes. Also on 21 February 2011, 19,156,627 shares were issued at 0.83p each as a result of the conversion of loan notes. On 27 June 2011 4,000,000 shares were issued at 0.25p as the result of the conversion of loan notes.
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