13 Sep 2016 07:00
AIM ANNOUNCEMENT | 13 September 2016 |
HALF YEAR RESULTS
Metminco Limited (ASX: MNC; AIM: MNC) is pleased to announce that it has today released its Report for the half year ended 30 June 2016.
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
Quinchia Gold Portfolio
· Metminco Limited (Metminco or the Company) acquired Miraflores Compania Minera SAS (Miraflores Compania), formerly Minera Seafield SAS from RMB Australia Holdings Limited (RMB) on 20 June 2016.
· Miraflores Compania owns 100% of the Quinchia Gold Portfolio which;
has a NI 43-101 Mineral Resource of 2.8 million ounces of gold, has a JORC 2012 Measured and Indicated Mineral Resource of 832,000 ozs Au and 817,000 ozs Ag at a 1.2g/t Au cut-off.covers 6,043Ha of granted concessions and an additional 3,792Ha of pending applications, hosts a number of deposits and significant exploration targets including Miraflores, Dosquebradas, Tesorito and Chuscal, andis located in Colombia's Middle Cauca Belt, which hosts several multimillion ounce gold discoveries.· The Quinchia Gold Portfolio provides the Company with a near term cash flow opportunity via the Miraflores Project where a mineable quantity of 4.03 million tonnes at 3.51g/t Au and 2.84g/t Ag has been scheduled containing 455,000 ozs Au and 368,000 ozs Ag.
· Updated Miraflores Project mining study confirms an underground mining only operation to be technically and financially more robust than previous studies and will now be the focus of the planned Feasibility Study.
· The Company will seek funding for the completion of a Feasibility Study and Environmental Impact Statement (EIS) at the Miraflores Project with a view to having the project permitted and the development funded by the end of the 2017 calendar year.
Los Calatos Copper-Molybdenum Project
· Agreement with CD Capital Natural Resources Fund III LP (CD Capital) to fund the completion of Pre-feasibility and Feasibility Studies. CD Capital to subscribe for new shares of up to US$45 million to acquire up to 70% of Los Calatos Holding Ltd (CD Capital Transaction).
· Initial investment of US$16 million to fund an infill drilling program to upgrade Inferred Mineral Resources to Measured and Indicated Mineral Resource categories, metallurgical testwork and permitting to meet with the requirements of a Pre-feasibility Study.
Mollacas
· The Company and the landowner at the Mollacas Project settled and terminated all outstanding claims in relation to the access dispute.
· The Company is assessing options available to it in relation to this project including seeking to secure land access for mining purposes.
Corporate
· The CD Capital Transaction is anticipated to be completed by mid-October 2016. An interim funding arrangement with CD Capital to fund the Los Calatos Project until completion takes place, reducing the Company's monthly cash burn by approximately A$100,000 from September 2016.
· The Company's cash position as at 30 June 2016 was approximately A$0.6 million. Evaluation of funding alternatives to progress the Miraflores Project through to completion of a Bankable Feasibility Study and decision to mine is underway.
Managing Director, William Howe said, "The period has seen the completion of two very significant events for the Company, the first of which resulted in Los Calatos becoming a genuine development option through securing a financial partner and, secondly, our entrance into the gold sector with the acquisition of Miraflores Compania. The focus is now firmly on advancing our near term and robust Miraflores Project in Colombia through to Feasibility and construction finance.
I am pleased we have exited a period of significant headwinds for the sector with two highly promising projects, and we look forward to updating our shareholders as we progress both projects towards development."
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
For the half year ended 30 June 2016
| Note |
30 June 2016 $ |
30 June 2015 $ | ||
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Revenue - interest income |
| 192 | 3,340 | ||
Foreign exchange gain / (loss) |
| 25,879 | (270,194) | ||
Administration expenses |
| (116,248) | (131,645) | ||
Corporate expenses |
| (615,995) | (880,223) | ||
Occupancy expense |
| (129,856) | (138,428) | ||
Exploration expenditure written off | 4 | (290,378) | (114,483) | ||
Evaluation and due diligence expenses |
| - | (398,084) | ||
Loss before income tax | 2 | (1,126,406) | (1,929,717) | ||
Income tax expense |
| - | - | ||
Loss for the period from continuing operations |
| (1,126,406) | (1,929,717) | ||
Other comprehensive income: Items that may be reclassified subsequently to profit or loss: |
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Exchange differences on translating foreign controlled entities | 8 | (1,244,390) | 5,088,415 | ||
Total comprehensive (loss)/income for the period |
| (2,370,796) | 3,158,698 | ||
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Loss attributable to: |
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Members of the parent entity |
| (1,126,406) | (1,929,717) | ||
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| (1,126,406) | (1,929,717) | ||
Total comprehensive (loss)/income attributable to: |
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Members of the parent entity |
| (2,370,796) | 3,158,698 | ||
|
| (2,370,796) | 3,158,698 | ||
Loss per share |
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From continuing operations: |
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Basic loss per share (cents) | 9 | (0.04) | (0.09) | ||
Diluted loss per share (cents) | 9 | (0.04) | (0.09) | ||
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These financial statements should be read in conjunction with the accompanying notes. | |||||
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 30 June 2016
| Note |
30 June 2016 $ |
31 December 2015 $ |
ASSETS |
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CURRENT ASSETS |
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Cash and cash equivalents |
| 589,292 | 949,790 |
Trade and other receivables | 7 | 231,618 | 186,858 |
Other assets |
| 23,616 | 21,815 |
TOTAL CURRENT ASSETS |
| 844,526 | 1,158,463 |
NON-CURRENT ASSETS |
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Trade and other receivables | 7 | 2,234,196 | 2,180,893 |
Property, plant and equipment | 3 | 4,912,504 | 4,586,160 |
Exploration and evaluation expenditure | 4 | 168,772,346 | 160,886,215 |
TOTAL NON-CURRENT ASSETS |
| 175,919,046 | 167,653,268 |
TOTAL ASSETS |
| 176,763,572 | 168,811,731 |
LIABILITIES |
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CURRENT LIABILITIES |
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Trade and other payables | 5 | 2,118,248 | 317,058 |
Short-term employee benefits | 6 | 260,066 | 258,225 |
TOTAL CURRENT LIABILITIES |
| 2,378,314 | 575,283 |
NON-CURRENT LIABILITIES |
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Long-term employee benefits | 6 | 85,769 | 83,155 |
Long-term payable | 5 | 4,708,895 | - |
TOTAL NON-CURRENT LIABILITIES |
| 4,794,664 | 83,155 |
TOTAL LIABILITIES |
| 7,172,978 | 658,438 |
NET ASSETS |
| 169,590,594 | 168,153,293 |
EQUITY |
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Issued capital | 11 | 327,845,561 | 324,037,464 |
Other reserves |
| (19,465,728) | (18,208,268) |
Accumulated losses |
| (138,789,239) | (137,675,903) |
TOTAL EQUITY |
| 169,590,594 | 168,153,293 |
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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 2016
|
| Issued Capital | Accumulated Losses | Option Reserve | Foreign Currency Translation Reserve
| Acquisition Reserve | Total | |
|
| $ | $ | $ | $ | $ | $ | |
Balance at 1 January 2015 |
| 318,677,036 | (88,790,974) | 253,594 | 14,612,641 | (41,506,662) | 203,245,635 | |
Loss attributable to members of the parent entity |
| _ | (1,929,717) | _ | _ | _ | (1,929,717) | |
Other comprehensive income |
| _ | _ | _ | 5,088,415 | _ | 5,088,415 | |
Total comprehensive income for the period |
| _ | (1,929,717) | _ | 5,088,415 | _ | 3,158,698 | |
Shares issued during the period |
| 4,193,584 | _ | _ | _ | _ | 4,193,584 | |
Transaction costs |
| (161,264) | _ | _ | _ | _ | (161,264) | |
Options lapsed during the period |
| _ | 185,849 | (185,849) | _ | _ | _ | |
Balance at 30 June 2015 |
| 322,709,356 | (90,534,842) | 67,745 | 19,701,056 | (41,506,662) | 210,436,653 | |
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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 loss |
| _ | _ | _ | (1,244,390) | _ | (1,244,390) | |
Total comprehensive loss 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 year |
| _ | 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 | |
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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 2016
| Note |
30 June 2016 $ |
30 June 2015 $ | |
CASH FLOWS FROM OPERATING ACTIVITIES |
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Payments to suppliers and employees |
| (779,763) | (941,062) | |
Evaluation and due diligence expenses |
| - | (398,084) | |
Interest received |
| 192 | 3,340 | |
Net cash used in operating activities |
| (779,571) | (1,335,806) | |
CASH FLOWS FROM INVESTING ACTIVITIES |
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Sale/(Purchase) of property, plant and equipment |
| 12,100 | (6,539) | |
Payments for exploration expenditure |
| (1,283,365) | (1,621,981) | |
Purchase of Miraflores Compania | 14 | (219,105) | - | |
Net cash used in investing activities |
| (1,490,370) | (1,628,520) | |
CASH FLOWS FROM FINANCING ACTIVITIES |
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Proceeds from issue of shares |
| 1,960,910 | 4,193,584 | |
Payments in respect to capital raisings |
| (152,814) | (161,264) | |
Cash received on acquisition of Miraflores Compania | 14 | 75,467 | - | |
Net cash provided by financing activities |
| 1,883,563 | 4,032,320 | |
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Net(decrease)/increase in cash held |
| (386,378) | 1,067,994 | |
Cash and cash equivalents at beginning of financial period |
| 949,790 | 1,192,693 | |
Effect of exchange rates on cash holdings in foreign currencies |
| 25,880 | (270,194) | |
Cash and cash equivalents at end of financial period |
| 589,292 | 1,990,493 | |
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These financial statements should be read in conjunction with the accompanying notes. |
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For further information, please contact:
METMINCO LIMITED |
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Stephen Tainton / Phil Killen |
| Office: +61 (0) 2 9460 1856 |
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NOMINATED ADVISOR AND BROKER |
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RFC Ambrian |
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Australia |
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Will Souter / Nathan Forsyth |
| Office: +61 (0) 2 9250 0000 |
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United Kingdom |
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Charlie Cryer |
| Office: +44 (0) 20 3440 6800 |
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JOINT BROKER |
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SP Angel Corporate Finance LLP UK) |
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Ewan Leggat |
| Office: +44 (0) 20 3470 0470 |
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UK FINANCIAL PR |
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Camarco |
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Gordon Poole / Tom Huddart |
| Office: + 44 (0) 20 3757 4997 |