3 Sep 2015 07:00
China Africa Resources plc
("China Africa Resources" or the "Company")
China Africa Resources plc today announces its unaudited interim results for the six months ended 30 June 2015.
For further information contact:
Rod Webster, Chief Executive Officer Weatherly International +44 (0)207 936 9910
Kevin Ellis, Company Secretary
Samantha Harrison, RFC Ambrian Limited +44 (0)203 440 6800
Nominated Advisor and Brokers
Chairman's statement
I am pleased to present the report and accounts for China Africa Resources plc results for the half year ended 30 June 2015.
Financial Results
During the period the group made a loss of US$0.3 million. The losses during the period are the costs incurred in managing the head office in the UK augmented by an exchange loss on sterling and Namibian deposits.
As at 30 June 2015 the Company had US$0.8 million in cash reserves.
Review of the period
During the half year the Company has been engaged in reviewing options to fund the feasibility study for the Berg Aukas Mine in Namibia having successfully completed the pre-feasibility study last year.
Key data from the Pre-feasibility study is as follows:
Mine Type | Underground |
Reserves * Zinc Lead Vanadium oxide | 2.05 million tonnes 11.1% 2.8% 0.23% |
Mining Rate | 250,000 tonne per annum (tpa) |
Mine Life | 10 years |
Processing Method | Heavy Media Separation / Flotation |
Processing rate | 250,000 tpa / 80,000 tpa |
Recoverable Metal Zinc Lead |
20,483 tpa 5,079 tpa |
Cash cost (C1) ** | US$466/ tonne of Zinc (US$ 0.21/ Ib Zinc) |
*Reserves (JORC) plus minable inventory
**Net of lead and silver credits
The Pre-feasibility study of the Berg Aukas mine demonstrates it to be a viable project. The project has pre- tax Net Present Values (NPVs), with an effective date of November 2013, using a discount rate of 10%of between US$49 million and US$51 million (best-estimated value), dependent on the processing option selected. The post tax NPVs is US$29m on best-estimated value and pre-tax internal Rate of Return (IRR) of 25% in real US$ terms.
We are also continuing to seek opportunities to enlarge the Lead and Zinc asset base of CAR and grow the Company for the benefit of our shareholders.
Cungen Ding
Chairman of the Board
2 September 2015
Consolidated income statement
for the period 1 January to 30 June 2015
|
|
| 6 months |
| 6 months |
| Year |
|
|
| ended |
| ended |
| ended |
|
|
| 30 June 2015 |
| 30 June 2014 |
| 31 December 2014 |
| Note |
| US$'000 |
| US$'000 |
| US$'000 |
|
|
| (unaudited) |
| (unaudited) |
| (audited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Administrative expenses |
|
| (297) |
| (419) |
| (784) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating loss |
|
| (297) |
| (419) |
| (784) |
|
|
|
|
|
|
|
|
Finance income | 3 |
| - |
| 20 |
| - |
Finance cost | 3 |
| (7) |
| - |
| (49) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss for the period before taxation |
|
| (304) |
| (399) |
| (833) |
|
|
|
|
|
|
|
|
Tax expense |
|
| - |
| - |
| - |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss for the period attributable to the equity holders of the parent |
|
| (304) |
| (399) |
| (833) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss per share expressed in cents |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted attributable to the equity holders of the parent | 2 |
| (1.32c) |
| (1.73c) |
| (3.61c) |
Consolidated statement of comprehensive income
for the period 1 January to 30 June 2015
|
| 6 months |
| 6 months |
| Year |
|
| ended |
| ended |
| ended |
|
| 30 June 2015 |
| 30 June 2014 |
| 31 December 2014 |
|
| US$'000 |
| US$'000 |
| US$'000 |
|
| (unaudited) |
| (unaudited) |
| (audited) |
|
|
|
|
|
|
|
Loss for the year attributable to equity holders of the parent |
| (304) |
| (399) |
| (833) |
Exchange differences on translation of foreign operations |
| (148) |
| (33) |
| (248) |
|
|
|
|
|
|
|
Total comprehensive loss for the period |
| (452) |
| (432) |
| (1,081) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Condensed consolidated statement of financial position
as at 30 June 2015
| At |
| At |
| At |
| 30 June 2015 |
| 30 June 2014 |
| 31 December 2014 |
| US$'000 |
| US$'000 |
| US$'000 |
| (unaudited) |
| (unaudited) |
| (audited) |
Assets |
|
|
|
|
|
Non-current assets |
|
|
|
|
|
Property, plant and equipment | 6 |
| 12 |
| 9 |
Intangible assets | 5,973 |
| 6,354 |
| 6,119 |
|
|
|
|
|
|
Total non-current assets | 5,979 |
| 6,366 |
| 6,128 |
|
|
|
|
|
|
Current assets |
|
|
|
|
|
Trade and other receivables | 33 |
| 25 |
| 24 |
Cash and cash equivalents | 765 |
| 1,472 |
| 1,151 |
|
|
|
|
|
|
| 798 |
| 1,497 |
| 1,175 |
|
|
|
|
|
|
Total assets | 6,777 |
| 7,863 |
| 7,303 |
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
Trade and other payables | (104) |
| (89) |
| (178) |
|
|
|
|
|
|
Total liabilities | (104) |
| (89) |
| (178) |
|
|
|
|
|
|
Net assets | 6,673 |
| 7,774 |
| 7,125 |
|
|
|
|
|
|
Equity |
|
|
|
|
|
Share capital | 377 |
| 377 |
| 377 |
Share premium | 6,556 |
| 6,607 |
| 6,556 |
Merger relief reserve | 4,052 |
| 4,052 |
| 4,052 |
Foreign Exchange Reserve | (1,120) |
| (757) |
| (972) |
Retained deficit | (3,192) |
| (2,505) |
| (2,888) |
|
|
|
|
|
|
Equity attributable to shareholders of the parent company | 6,673 |
| 7,774 |
| 7,125 |
|
|
|
|
|
|
|
|
|
|
|
|
Condensed consolidated statement of changes in equity
for the period 1 January to 30 June 2015
| Share capital | Share premium | Merger Reserve | Foreign exchange reserve | Retained deficit | Total |
| US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 |
|
|
|
|
|
|
|
Balance at 1 January 2015 | 377 | 6,556 | 4,052 | (972) | (2,888) | 7,125 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss for the period | - | - | - | - | (304) | (304) |
|
|
|
|
|
|
|
Other comprehensive income |
|
|
|
|
|
|
|
|
|
|
|
|
|
Exchange differences on translation of foreign operations | - | - | - | (148) | - | (148) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at 30 June 2015 | 377 | 6,556 | 4,052 | (1,120) | (3,192) | 6,673 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at 1 January 2014 | 377 | 6,607 | 4,052 | (724) | (2,106) | 8,206 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss for the period | - | - | - | - | (833) | (833) |
|
|
|
|
|
|
|
Other comprehensive income |
|
|
|
|
|
|
|
|
|
|
|
|
|
Exchange differences on translation of foreign operations | - | - | - | (248) | - | (248) |
Total Comprehensive income | 377 | 6,607 | 4,052 | (972) | (2,939) | 7,125 |
Share based payments |
| (51) |
|
| 51 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at 31 December 2014 | 377 | 6,556 | 4,052 | (972) | (2,888) | 7,125 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at 1 January 2014 | 377 | 6,607 | 4,052 | (724) | (2,106) | 8,206 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss for the period | - | - | - | - | (399) | (399) |
|
|
|
|
|
|
|
Other comprehensive income |
|
|
|
|
|
|
|
|
|
|
|
|
|
Exchange differences on translation of foreign operations | - | - | - | (33) | - | (33) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at 30 June 2014 | 377 | 6,607 | 4,052 | (757) | (2,505) | 7,774 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Condensed consolidated cash flow statement
for the period 1 January to 30 June 2015
|
|
| 6 months |
| 6 months |
| Year |
|
|
| ended |
| ended |
| ended |
|
|
| 30 June 2015 |
| 30 June 2014 |
| 31 December 2014 |
|
|
| US$'000 |
| US$'000 |
| US$'000 |
|
|
| (unaudited) |
| (unaudited) |
| (audited) |
|
|
|
|
|
|
|
|
Cash flows from operating activities |
|
|
|
|
|
|
|
Loss for the year |
|
| (304) |
| (399) |
| (833) |
Adjusted by: |
|
|
|
|
|
|
|
Unrealised exchange (gains) / losses |
|
| (7) |
| (23) |
| (47) |
Depreciation |
|
| 3 |
| 2 |
| 4 |
Interest received |
|
| - |
| (20) |
| - |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (308) |
| (440) |
| (876) |
Movements in working capital |
|
|
|
|
|
|
|
Increase in trade and other receivables |
|
| (9) |
| 51 |
| 53 |
(Decrease) / Increase in trade and other payables |
|
| (76) |
| (47) |
| 42 |
Unrealised exchange (gains) / losses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used in operating activities |
|
| (393) |
| (436) |
| (781) |
|
|
|
|
|
|
|
|
Cash flows generated from investing activities |
|
|
|
|
|
|
|
Interest received |
|
| - |
| 20 |
| - |
Payments for evaluation of feasibility studies |
|
| - |
| (57) |
| (37) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used for investing activities |
|
| - |
| (37) |
| (37) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Decrease in Cash and cash equivalents in the period |
|
| (393) |
| (473) |
| (818) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation to net cash |
|
|
|
|
|
|
|
Cash and cash equivalents at the beginning of the period |
|
| 1,151 |
| 1,922 |
| 1,922 |
Decrease in cash |
|
| (393) |
| (473) |
| (818) |
Foreign exchange movements |
|
| 7 |
| 23 |
| 47 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at the end of the period |
|
| 765 |
| 1,472 |
| 1,151 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes to the condensed consolidated financial statements
for the period 1 January to 30 June 2015
1. Basis of preparation
The unaudited condensed consolidated interim financial statements have been prepared using the recognition and measurement principles of International Accounting Standards, International Reporting Standards and Interpretations adopted for use in the European Union (collectively EU IFRSs). The Group has not elected to comply with IAS 34 "Interim Financial Reporting" as permitted. The principal accounting policies used in preparing the interim financial statements are unchanged from those disclosed in the Group's Annual Report for the year ended 31 December 2014 and are expected to be consistent with those policies that will be in effect at the year end.
The condensed financial statements for the six months ended 30 June 2015 and 30 June 2014 are un-reviewed and unaudited. The comparative financial information does not constitute statutory financial statements as defined by Section 435 of the Companies Act 2006. The comparative financial information for the year ended 31 December 2014 is not the company's full statutory accounts for that period. A copy of those statutory financial statements has been delivered to the Registrar of Companies. The auditors' report on those accounts was unqualified, did not include references to any matters to which the auditors drew attention by way of emphasis without qualifying their report and did not contain a statement under section 498(2)-(3) of the Companies Act 2006.
2. EARNINGS per share
The calculation of the basic earnings per share is based on the profit attributable to ordinary shareholders divided by the weighted average number of shares in issue during the period. Diluted earnings per share are not stated as the dilution would relate only to share options and would not be material.
|
| 6 months |
| 6 months |
| Year |
|
| ended |
| ended |
| ended |
|
| 30 June 2015 |
| 30 June 2014 |
| 31 December 2014 |
|
| US$'000 |
| US$'000 |
| US$'000 |
|
| (unaudited) |
| (unaudited) |
| (audited) |
|
|
|
|
|
|
|
Basic and diluted loss per share (US cents) |
| (1.32c) |
| (1.73c) |
| (3.61c) |
|
|
|
|
|
|
|
Loss before tax |
| (304) |
| (399) |
| (833) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares for basic and diluted loss per share |
| 23,076,924 |
| 23,076,924 |
| 23,076,924 |
|
|
|
|
|
|
|
Notes to the consolidated financial statements
for the period 1 January to 30 June 2015
3. FINANCE COSTS
|
| 6 months |
| 6 months |
| Year |
|
| ended |
| ended |
| ended |
|
| 30 June 2015 |
| 30 June 2014 |
| 31 December 2014 |
|
| US$'000 |
| US$'000 |
| US$'000 |
|
| (unaudited) |
| (unaudited) |
| (audited) |
Finance Income |
|
|
|
|
|
|
Bank deposits |
| - |
| 1 |
| - |
Exchange gains |
| (7) |
| 19 |
| - |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest revenue |
| (7) |
| 20 |
| - |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Finance Costs |
|
|
|
|
|
|
Exchange losses |
| - |
| - |
| (49) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| - |
| - |
| (49) |
|
|
|
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Investment revenue earned on financial assets analysed by category of asset is as follows: |
|
|
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|
|
|
|
|
|
|
Loans & receivables (including cash and bank balances) |
| - |
| 1 |
| - |
|
|
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|
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