13 Sep 2017 09:02
AIM ANNOUNCEMENT
| 13 September 2017
|
Half Year Report
Metminco Limited (ASX: MNC; AIM: MNC) is pleased to announce that it has today released its report for the half year ended 30 June 2017.
An extract from the report is set out below. The full report can be accessed from the Company's website www.metminco.com.au
HIGHLIGHTS
Miraflores Bankable Feasibility Study
Metminco Limited (Metminco or the Company) acquired Miraflores Compania Minera SAS (Miraflores Compania), formerly Minera Seafield SAS from RMB Australia Holdings Limited (RMB) in June 2016.
Miraflores Compania Minera owns 100% of the Quinchia Gold Portfolio which;
Ø has a NI 43-101 estimated Mineral Resource of 2.8 million ounces of gold,
Ø covers 6,043Ha of granted concessions and an additional 3,792Ha of pending applications,
Ø contains a number of deposits and significant exploration targets including Miraflores, Dosquebradas, Tesorito and Chuscal, and,
Ø is located in Colombia's Middle Cauca Belt, which hosts several multimillion ounce gold discoveries
· The Miraflores Project has a JORC 2012 compliant Measured and Indicated Mineral Resource of 9.27 million tonnes at 2.82g/t Au and 2.77g/t Ag containing 840,000 oz Au and 826,000 oz Ag at a 1.2g/t Au cut-off,
· The Miraflores Project has a mineable quantity of 4.32 million tonnes at 3.3g/t Au and 2.56g/t Ag at a 1.53g/t cut-off containing 458,000 oz of Au and 355,000 oz Ag.
· The Company commenced with a Bankable Feasibility Study in November 2016 and is expected to complete the study by the end of 3Q2017.
· Metallurgical testwork commissioned by Metminco on Miraflores ores confirmed previous testwork results with gold recovery of 91% confirmed.
· Optimisation of the mining plan and schedule for the feasibility study has resulted in significant operating cost savings from previous studies.
· Changes from previous studies such as backfill, tailings disposal, stoping height, and plant layout and changes to the mine plan including changing from an open pit/underground configuration to underground only operations will accelerate permitting for the operation.
Los Calatos Copper-Molybdenum Project
· Agreement to dispose of the Company's remaining interest in the Los Calatos Project was reached with CD Capital Natural Resources Fund III LP (CD Capital) with final settlement of the transaction on 28 June 2017. The Company received US$5 million net of costs for its remaining interest in Los Calatos.
Chile
· The Company's assets in Chile remained on care and maintenance during the half year.
Corporate
· The Company secured funding to progress the Miraflores Project through to completion of a Bankable Feasibility Study and decision to mine from the sale of the Los Calatos Project.
· The Company's cash position as at 30 June 2017 was approximately A$6.3 million.
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
For the half year ended 30 June 2017
Note |
30 June 2017 $ |
30 June 2016 $ | ||
Revenue | - | 192 | ||
Finance costs on deferred consideration | 15 | (229,730) | - | |
Foreign exchange (loss) / gain | (60,779) | 25,879 | ||
Administration expenses | (288,047) | (116,248) | ||
Corporate expenses | (1,206,987) | (615,995) | ||
Occupancy expense | (51,860) | (129,856) | ||
Exploration expenditure written off | 4 | (87,880) | (290,378) | |
Loss on sale of asset | 16 | (27,165,722) | - | |
Unrealised loss on derivative asset | 8 | (1,553,481) | - | |
Realised loss on derivative asset | 8 | (106,118) | - | |
Profit on disposal of assets | 23,570 | - | ||
Loss before income tax | 2 | (30,727,034) | (1,126,406) | |
Income tax expense | - | - | ||
Loss for the period from continuing operations | (30,727,034) | (1,126,406) | ||
Other comprehensive income: Items that may be reclassified subsequently to profit or loss: | ||||
Exchange differences on translating foreign controlled entities
| 9 | (1,430,655) | (1,244,390) | |
Total comprehensive (loss) for the period | (32,157,689) | (2,370,796) | ||
Loss attributable to: | ||||
Members of the parent entity | (30,727,034) | (1,126,406) | ||
(30,727,034) | (1,126,406) | |||
Total comprehensive (loss) attributable to: | ||||
Members of the parent entity | (32,157,689) | (2,370,796) | ||
(32,157,689) | (2,370,796) | |||
Loss per share | ||||
From continuing operations: | ||||
Basic loss per share (cents) | 10 | (25.38) | (0.04) | |
Diluted loss per share (cents) | 10 | (25.38) | (0.04) | |
These financial statements should be read in conjunction with the accompanying notes. | ||||
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 30 June 2017
Note |
30 June 2017 $ |
31 December 2016 $ | |
ASSETS | |||
CURRENT ASSETS | |||
Cash and cash equivalents | 6,349,931 | 71,548 | |
Trade and other receivables | 7 | 596,413 | 385,827 |
Derivative asset | 8 | 215,235 | - |
Other assets | 12,506 | 21,060 | |
TOTAL CURRENT ASSETS | 7,174,085 | 478,435 | |
NON-CURRENT ASSETS | |||
Derivative asset | 8 | 258,440 | - |
Investment in associate | 16 | - | 33,766,877 |
Property, plant and equipment | 3 | 4,257,086 | 4,538,349 |
Exploration and evaluation expenditure | 4 | 10,421,030 | 9,486,691 |
TOTAL NON-CURRENT ASSETS | 14,936,556
| 47,791,917 | |
TOTAL ASSETS | 22,110,641 | 48,270,352 | |
LIABILITIES | |||
CURRENT LIABILITIES | |||
Trade and other payables | 5 | 5,717,660 | 3,425,242 |
Short-term provisions | 6 | 208,976 | 236,775 |
TOTAL CURRENT LIABILITIES | 5,926,636 | 3,662,017 | |
NON-CURRENT LIABILITIES | |||
Long-term provisions | 6 | 49,272 | 79,903 |
Long-term payable | 5 | 4,159,681 | 4,893,628 |
TOTAL NON-CURRENT LIABILITIES | 4,208,953 | 4,973,531 | |
TOTAL LIABILITIES | 10,135,589 | 8,635,548 | |
NET ASSETS | 11,975,052 | 39,634,804 | |
EQUITY | |||
Issued capital | 12 | 333,092,371 | 329,032,074 |
Other reserves | (31,135,702) | (30,142,687) | |
Accumulated losses | (289,981,617) | (259,254,583) | |
TOTAL EQUITY | 11,975,052 | 39,634,804 | |
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 2017
Issued Capital | Accumulated Losses | Option Reserve | Convertible Note equity reserve | Foreign Currency Translation Reserve
| Acquisition Reserve | Total | ||
$ | $ | $ | $ | $ | $ | $ | ||
Balance at 1 January 2016 | 324,037,464 | (137,675,903) | 67,756 | _
| 23,230,638 | (41,506,662) | 168,153,293 | |
Loss attributable to members of the parent entity | _ | (1,126,406) | _ | _ | _ | _ | (1,126,406) | |
Other comprehensive income | _ | _ | _ | _ | (1,244,390) | _ | (1,244,390) | |
Total comprehensive income for the period | _ | (1,126,406) | _ | _ | (1,244,390) | _ | (2,370,796) | |
Shares issued during the period | 3,960,910 | _ | _ | _ | _ | _ | 3,960,910 | |
Transaction costs | (152,813) | _ | _ | _ | _ | _ | (152,813) | |
Options lapsed during the period | _ | 13,070 | (13,070) | _ | _ | _ | _ | |
Balance at 30 June 2016 | 327,845,561 | (138,789,239) | 54,686 | _ | 21,986,248 | (41,506,662) | 169,590,594 | |
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 | |
These financial statements should be read in conjunction with the accompanying notes. | ||||||||
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CONSOLIDATED STATEMENT OF CASH FLOWS
For the half year ended 30 June 2017
Note |
30 June 2017 $ |
30 June 2016 $ | ||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||
Payments to suppliers and employees | (1,573,133) | (779,763) | ||
Interest received | - | 192 | ||
Net cash used in operating activities | (1,573,133) | (779,571) | ||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||
Sale of property, plant and equipment | 23,570 | 12,100 | ||
Payments for exploration expenditure | (1,203,307) | (1,283,365) | ||
Purchase of Miraflores Compania | - | (219,105) | ||
Proceeds from sale of Los Calatos | 6,601,155 | - | ||
Net cash used in investing activities | 5,421,418 | (1,490,370) | ||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||
Proceeds from issue of shares | 2,020,035 | 1,960,910 | ||
Payments in respect to capital raisings | (314,704) | (152,814) | ||
Cash received on acquisition of Miraflores Compania | - | 75,467 | ||
Cash received from convertible notes | 17 | 750,000 | - | |
Cash received from derivative asset | 8 | 35,549 | - | |
Net cash provided by financing activities | 2,490,880 | 1,883,563 | ||
Net increase / (decrease) in cash held | 6,339,165 | (386,378) | ||
Cash and cash equivalents at beginning of financial period | 71,548 | 949,790 | ||
Effect of exchange rates on cash holdings in foreign currencies | (60,782) | 25,880 | ||
Cash and cash equivalents at end of financial period | 6,349,931 | 589,292 | ||
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 information, please contact: METMINCO LIMITED | ||
Brian Jones | Office: +61 (0) 2 9460 1856 | |
NOMINATED ADVISOR AND BROKER | ||
RFC Ambrian | ||
Australia | ||
Will Souter / Nathan Forsyth | Office: +61 (0) 2 9250 0000 | |
United Kingdom | ||
Charlie Cryer | Office: +44 (0) 20 3440 6800 | |
JOINT BROKER | ||
SP Angel Corporate Finance LLP (UK) | ||
Ewan Leggat | Office: +44 (0) 20 3470 0470 | |
PUBLIC RELATIONS | ||
Camarco United Kingdom | ||
Gordon Poole / Tom Huddart | Office: + 44 (0) 20 3757 4997 | |
Media & Capital Partners Australia | ||
Luke Forrestal | Office: + 61 (0) 411 479 144 | |
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