13 Sep 2018 08:58
AIM ANNOUNCEMENT | 13th September 2018 |
|
|
Half Year Report
Metminco Limited (ASX: MNC; AIM: MNC) is pleased to announce its Half Yearly Report for the period June 30th 2018.
This announcement is an abridged version of the announcement. For the full announcement, please refer to the Company's website at www.metminco.com.au
Highlights
Principal Activities
The Group's Quinchia Gold Portfolio encompasses a potential near-term producing asset, the Miraflores Gold Project, as well as assets with substantial upside potential including the significant gold porphyry system targets of Tesorito, Dosquebrados and Chuscal. A Plan of works was submitted to the Colombian Mining Agency in January 2018 for the construction of the proposed Miraflores gold mine.
While the Company also retains its 100% Chilean Projects, the primary focus is on the Miraflores Gold Project and as such the Chilean projects are on care and maintenance. These Chilean projects provide significant exposure to copper through Mollacas on which a mining study announced in 2014 demonstrated robust economics for development of the Mollacas Project, which is subject to resolution of a dispute with the land holder. The Vallecillo Project is a polymetallic deposit with identified resources.
Quinchia Gold Portfolio Colombia
In June 2016 the Company completed the acquisition of Miraflores Compañia Minera ("Miraflores Compañia") from RMB Resources Australia Pty Ltd. Miraflores Compañia owns 100% of the Quinchia Gold Portfolio located within Colombia's Middle Cauca Belt approximately 90km WNW of the Colombian capital of Bogota and 55 km to the north of Pereira, the capital of the Department of Risaralda.
The Quinchia Portfolio contains several gold deposits and exploration prospects including Miraflores, Dosquebradas, Tesorito and Chuscal.
A review of the Columbian concessions during the half year resulted in the decision to relinquish a number of concessions and, in line with the Company's accounting policies, to impair some of the capitalised exploration on certain concessions.
During the half year period a 1,500m diamond drilling program was commenced at Tesorito, part of the Quinchia Gold Portfolio. Results from the program were announced in August 2018 and included best intercept of 64m @ 1.67g/t Au from 144m within 253m @ 1.10 g/t from 2.9m from hole TS-DH-07 (refer ASX announcement of 30 August 2018).
Negotiations commenced with the owner of the Chuscal licence applications to form a joint venture. These discussions are ongoing as at the date of this report.
The Company submitted the Plan of Work ("PTO") to the Colombian Mining Agency for mine development approval for the Miraflores Gold Project in January 2018. Colombian regulations require both the PTO and Environmental Impact Assessment approvals prior to commencement of operations. As at the date of this report, approval of the PTO is awaited.
The critical path for the development of the project remains the completion of the EIA, including the validation of the impacts on the local communities and the gaining of the social licence for the project. Final, seasonal water monitoring was completed during the quarter and will inform the EIA submission.
Mollacas, Vallecillo, Loica Projects, Chile
These projects remained on care and maintenance during the reporting period.
Corporate
During the half year the new management of Company undertook a number of measures to reduce on-going costs, which necessitated some additional short-term expenses. The Company's registered office was moved from Sydney to Melbourne.
Matters subsequent to the end of the financial period
Matters that have arisen in the interval between the end of the half year ended 30 June 2018 and the date of this report of a material or unusual nature are as follows:
Appointment of Nick Winer (2 August 2018) as Director of Exploration, based in Medellin, Colombia
Nick is a geologist with over 30 years' experience in gold, base metals in South America and will lead the Company's activities in Colombia, in particular, the advancement of the portfolio of gold assets in the Quinchia district.
On 13th September 2018, the Company entered into an unsecured loan facility arrangement with private investors to the value of $500,000 at a 12% coupon rate paid quarterly maturing 6 months from date of issue or earlier by the Company on 30 days' notice or on completion of a proposed capital raising.
On 13th September 2018, the Company entered into a Trading Halt on the ASX pending a corporate transaction and capital raising.
As at the date of this report, the Directors are not aware of any further matters that have arisen that have significantly affected, or may significantly affect, the operations of the Company
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
For the half year ended 30 June 2018
| Note |
30 June 2018 $ |
30 June 2017 $ | ||
|
|
|
| ||
Other income |
| 2,496 | - | ||
|
|
|
| ||
Administration expenses |
| (122,692) | (288,047) | ||
Corporate expenses |
| (1,685,036) | (1,267,766) | ||
Occupancy expense |
| (67,677) | (51,860) | ||
Exploration expenditure written off | 9 | (2,485,725) | (87,880) | ||
Share based payments expense | 12 | (781,607) | - | ||
Loss on sale of asset |
| - | (27,165,722) | ||
Unrealised loss on derivative asset |
| - | (1,553,481) | ||
Realised loss on derivative asset | 5 | (228,273) | (106,118) | ||
Profit on disposal of assets |
| - | 23,570 | ||
Finance costs |
| (230,253) | (229,730) | ||
Loss before income tax |
| (5,598,767) | (30,727,034) | ||
Income tax expense |
| - | - | ||
Loss for the period from continuing operations |
| (5,598,767) | (30,727,034) | ||
Other comprehensive income: Items that may be reclassified subsequently to profit or loss: |
|
|
| ||
Exchange differences on translating foreign controlled entities
|
| 435,451 | (1,430,655) | ||
Total comprehensive Loss for the period |
| (5,163,316) | (32,157,689) | ||
|
|
|
| ||
Loss attributable to: |
|
| |||
Members of the parent entity |
| (5,598,767) | (30,727,034) | ||
|
| (5,598,767) | (30,727,034) | ||
Total comprehensive (loss) attributable to: |
|
|
| ||
Members of the parent entity |
| (5,163,316) | (32,157,689) | ||
|
| (5,163,316) | (32,157,689) | ||
Loss per share |
|
|
| ||
From continuing operations: |
|
|
| ||
Basic loss per share (cents) |
| (4.83) | (25.38) | ||
Diluted loss per share (cents) |
| (4.83) | (25.38) | ||
|
|
|
| ||
These financial statements should be read in conjunction with the accompanying notes. | |||||
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 30 June 2018
| Note |
30 June 2018 $ |
31 December 2017 $ |
ASSETS |
|
|
|
CURRENT ASSETS |
|
|
|
Cash and cash equivalents |
| 1,705,998 | 834,377 |
Trade and other receivables | 4 | 99,502 | 167,382 |
Derivative asset | 5 | - | 272,683 |
Asset held for sale | 6 | 2,726,512 | 2,586,122 |
Other assets | 7 | 151,880 | 48,610 |
TOTAL CURRENT ASSETS |
| 4,683,892 | 3,909,174 |
NON-CURRENT ASSETS |
|
|
|
Property, plant and equipment | 8 | 740,571 | 569,642 |
Exploration and evaluation expenditure | 9 | 10,352,562 | 12,015,128 |
TOTAL NON-CURRENT ASSETS |
| 11,093,132 | 12,584,770 |
TOTAL ASSETS |
| 15,777,024 | 16,493,944 |
LIABILITIES |
|
|
|
CURRENT LIABILITIES |
|
|
|
Trade and other payables | 10 | 3,907,227 | 3,392,074 |
Provisions | 11 | 214,300 | 187,214 |
TOTAL CURRENT LIABILITIES |
| 4,121,527 | 3,579,288 |
NON-CURRENT LIABILITIES |
|
|
|
Trade and other Payables | 10 | 1,714,678 | 4,322,867 |
TOTAL NON-CURRENT LIABILITIES |
| 1,714,678 | 4,322,867 |
TOTAL LIABILITIES |
| 5,836,205 | 7,902,155 |
NET ASSETS |
| 9,940,819 | 8,591,789 |
EQUITY |
|
|
|
Issued capital | 13 | 338,729,969 | 332,987,792 |
Other reserves |
| (28,685,744) | (29,914,047) |
Accumulated losses |
| (300,103,406) | (294,481,956) |
TOTAL EQUITY |
| 9,940,819 | 8,591,789 |
|
|
|
|
These financial statements should be read in conjunction with the accompanying notes. | |||
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the half year ended 30 June 2018
|
| Issued Capital | Accumulated Losses | Option Reserve | Convertible Note equity reserve | Foreign Currency Translation Reserve
| Acquisition Reserve | Total |
| |
|
| $ | $ | $ | $ | $ | $ | $ |
| |
Balance at 1 January 2017 |
| 329,032,074 | (259,254,583) | 54,686 | _ | 11,309,289 | (41,506,662) | 39,634,804 |
| |
Loss attributable to members of the parent entity |
| _ | (30,727,034) | _ | _ | _ | _ | (30,727,034) |
| |
Other comprehensive loss |
| _ | _ | _ | _ | (1,430,655) | _ | (1,430,655) |
| |
Total comprehensive loss for the period |
| _ | (30,727,034) | _ | _ | (1,430,655) | _ | (32,157,689) |
| |
Shares issued during the period |
| 4,375,000 | _ | _ | _ | _ | _ | 4,375,000 |
| |
Transaction costs |
| (314,703) | _ | _ | _ | _ | _ | (314,703) |
| |
Equity component of convertible note |
| _ | _ | _ | 11,468 | _ | _ | 11,468 |
| |
Options issued during the period |
| _ | _ | 426,172 | _ | _ | _ | 426,172 |
| |
Balance at 30 June 2017 |
| 333,092,371 | (289,981,617) | 480,858 | 11,468 | 9,878,634 | (41,506,662) | 11,975,052 |
| |
|
|
|
|
|
|
|
|
|
| |
Balance at 1 January 2018 |
| 332,987,792 | (294,481,956) | 480,860 | 11,448 | 11,100,307 | (41,506,662) | 8,591,789 |
| |
Loss attributable to members of the parent entity |
| _ | (5,598,767) | _ | _ | _ | _ | (5,598,767) |
| |
Other comprehensive loss |
| _ | _ | _ | _ | 435,451 | _ | 435,451 |
| |
Total comprehensive loss for the period |
| _ | (5,598,767) | _ | _ | 435,451 | _ | (5,163,316) |
| |
Shares issued during the period |
| 6,282,789 | _ | _ | _ | _ | _ | 6,282,789 |
| |
Transaction costs |
| (540,612) | _ | _ | _ | _ | _ | (540,612) |
| |
Equity component of convertible note |
| - | _ | _ | (11,468) | _ | _ | (11,468) |
| |
Options issued during the period |
| - | - | 781,617 | _ | _ | _ | 781,617 |
| |
Options expired -prior period adjustment |
| - | 54,687 | (54,687) | - | - | - | - |
| |
Balance at 30 June 2018 |
| 338,729,968 | (300,026,036) | 1,207,790 | - | 11,535,758 | (41,506,662) | 9,940,818 |
| |
CONSOLIDATED STATEMENT OF CASH FLOWS
For the half year ended 30 June 2018
| Note |
30 June 2018 $ |
30 June 2017 $ |
CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
Payments to suppliers and employees |
| (1,677,704) | (1,573,133) |
Interest received |
| 2,496 | - |
Net cash used in operating activities |
| (1,675,208) | (1,573,133) |
CASH FLOWS FROM INVESTING ACTIVITIES |
|
|
|
Purchase of property, plant and equipment |
| (170,394) | 23,570 |
Payments for exploration expenditure |
| (712,408) | (1,203,307) |
Payment of deferred consideration |
| (1,000,000) | - |
Proceeds from sale of Los Calatos |
| - | 6,601,155 |
Net cash (used in)/provided by investing activities |
| (1,882,802) | 5,421,418 |
CASH FLOWS FROM FINANCING ACTIVITIES |
|
|
|
Proceeds from issue of shares |
| 6,282,789 | 2,020,035 |
Payments in respect to capital raisings |
| (540,612) | (314,704) |
Cash received from convertible notes |
| - | 750,000 |
Cash paid for convertible notes redemption |
| (842,383) | - |
Cash received from derivative asset |
| - | 35,549 |
Cash received from equity swap |
| 44,410 | - |
Net cash provided by financing activities |
| 4,944,204 | 2,490,880 |
|
|
|
|
Net increase in cash held |
| 1,386,194 | 6,339,165 |
Cash and cash equivalents at beginning of financial period |
| 834,377 | 71,548 |
Effect of exchange rates on cash holdings in foreign currencies |
| (514,573) | (60,782) |
Cash and cash equivalents at end of financial period |
| 1,705,998 | 6,349,931 |
These financial statements should be read in conjunction with the accompanying notes.
This announcement contains inside information as stipulated under Article 7 of the Market Abuse Regulation (EU) No. 596/2014.
For further enquiries contact:
Kevin Wilson
Executive Chairman Metminco Limited;
kwilson@metminco.com.au
+61 409 942 355
For further information, please contact: METMINCO LIMITED |
|
|
Kevin Wilson |
| +61 409 942 355 |
|
|
|
NOMINATED ADVISOR AND JOINT BROKER |
|
|
RFC Ambrian |
|
|
Australia |
|
|
Andrew Thomson / Alena Broesder |
| +61 2 9250 0000 |
United Kingdom |
|
|
Charlie Cryer |
| +44 20 3440 6800 |
|
|
|
JOINT BROKER |
|
|
Stockdale Securities |
|
|
United Kingdom Corporate Finance- Robert Finlay/ Ed Thomas Sales- Zoe Alexander |
| +44 20 7601 6100 |
|
|
|
PUBLIC RELATIONS |
|
|
Camarco United Kingdom |
|
|
Gordon Poole / Nick Hennis |
| +44 20 3757 4997 |
|
|
|
Forward Looking Statement
All statements other than statements of historical fact included in this announcement including, without limitation, statements regarding future plans and objectives of Metminco are forward-looking statements. When used in this announcement, forward-looking statements can be identified by words such as ''anticipate", "believe", "could", "estimate", "expect", "future", "intend", "may", "opportunity", "plan", "potential", "project", "seek", "will" and other similar words that involve risks and uncertainties.
These statements are based on an assessment of present economic and operating conditions, and on a number of assumptions regarding future events and actions that, as at the date of this announcement, are expected to take place. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties, assumptions and other important factors, many of which are beyond the control of the Company, its directors and management of Metminco that could cause Metminco's actual results to differ materially from the results expressed or anticipated in these statements.
The Company cannot and does not give any assurance that the results, performance or achievements expressed or implied by the forward-looking statements contained in this announcement will actually occur and investors are cautioned not to place undue reliance on these forward-looking statements. Metminco does not undertake to update or revise forward-looking statements, or to publish prospective financial information in the future, regardless of whether new information, future events or any other factors affect the information contained in this announcement, except where required by applicable law and stock exchange listing.