25 Sep 2012 10:20
For immediate release: | 25 September 2012 |
Premier Gold Resources plc
("Premier Gold" or the "Company")
Interim results for the six months ended 30 June 2012
Highlights for the period
·; Acquisition of Central Asia Resources completed - delivering the Cholokkaindy gold licence in Kyrgyzstan
·; Board and management strengthened with appointments of Colonel Bob Stewart DSO MP as Non-executive Chairman and Garth Earls as Head of Exploration
·; Placing to raise £350,000 to fund exploration activities
·; Encouraging results obtained from 2011 soil and rock sample analysis
·; 2012 exploration programme commenced - intended to include first drilling
Chairman's Statement
I am pleased to present the Premier Gold interim results for the first time since being appointed to the Company's board in May as Non-executive Chairman. Having promoted British business interests in Kyrgyzstan and visited the country on several occasions, I am fully aware of the investment potential of the country. Premier Gold holds licenses in the mineral rich area of the Tien Shan gold belt and I am very much looking forward to assisting the Company's development while representing the interests of all shareholders.
The last six months has been a period of significant progress for the Company, both on a corporate and operational level. The board is confident that the strategy is in place to develop our licenses as we target our first maiden resource in 2013.
On 30 March 2012, following the acquisition of Central Asia Resources Ltd, Premier Gold began trading on the AIM market of the London Stock Exchange. The acquisition delivered the Cholokkaindy licence in Kyrgyzstan within which four significant gold prospects have been idenitified, including the relatively advanced Talbaital and Jarkonush prospects. As part of the acquisition Premier Gold gained a lithium licence in Uzunbulak which is non-core and, under the terms of the acquisition agreement, the Company intends to return it to the vendor.
Following admission to the AIM market the Company raised funds of £350,000, predominantly with institutional investors. The proceeds of this fundraising are being used to advance exploration and development work at the Cholokkaindy gold project. Attracting new investors and receiving support from existing shareholders underlines the confidence that there is in the management and future success of the Company.
The Cholokkaindy licence is in early stage gold exploration phase with Talbaital being the most advanced prospect. Two periods of sampling in 2010 and 2011 have built a picture of a significant gold target, possibly extending southwards to a second prospect identified at Jarkonush; this is the focus of further exploration work initiated in June and which, for the first time, is intended to include drilling. At Talbaital, the initial trenches indicated a single structure but subsequent sampling has demonstrated that it is much wider and therefore of greater potential. While final results from geochemical analyses of the extensive soil samples taken this season are not yet available, the preliminary indications are that numerous new areas of significantly elevated gold values have been defined. Strong indications are that these anomalous areas are adjacent. We look forward to soil sampling, trenching and drilling results in the coming months as we build a clearer picture of the potential of the licence.
Financial results
Premier Gold is an early-stage exploration company and, as such, has no revenues. The Company's expenditure relates predominantly to the exploration, development and analysis work on the Cholokkaindy gold project in Kyrgyzstan. The Company recorded a loss before tax for the period of £669,008. The Company had cash and cash equivalents at 30 June 2012 of £443,411. The Company changed its financial year end to 31 December to align with that of its subsidiary.
Board and senior management
As well as my appointment as Non-executive Chairman, during the period the Company also appointed Garth Earls as Head of Exploration. His experience working with several gold explorers and producers will prove invaluable as the Company grows.
Outlook
Premier Gold is at an exciting phase in its development and it is a privilege to be involved at this early but significant juncture. The Company is positioned for growth and the management is looking forward to analysing and reporting further results.
Colonel Bob Stewart DSO MP
Chairman
25 September 2012
Contacts:
Premier Gold Resources Plc | |
Richard Nolan, COO / Gerry Desler, FD | 01279 731037 |
Merchant Securities Limited (NOMAD and Broker) | |
Lindsay Mair / Richard Goldsmith / Chris Theis | 020 7628 2200 |
M: Communications | |
Ben Simons / Matthew Neal | 020 7920 2340/68 |
For further information please visit: www.premiergoldresources.com
Premier Gold Resources Plc
Interim results
For the six months ended 30 June 2012
Consolidated statement of comprehensive income
Six months ended | Six months ended | 11 months ended | |||
30 June | 31 July | 31 December | |||
2012 | 2011 | 2011 | |||
(unaudited) | (unaudited) | (audited) | |||
£ | £ | £ | |||
Continuing operations | |||||
Revenue | - | - | - | ||
Cost of sales | - | - | - | ||
Gross profit | - | - | - | ||
Administrative expenses | (639,309) | (419,785) | (931,970) | ||
Share based payments | (34,453) | 2,514 | 5,034 | ||
Operating loss | (673,762) | (417,271) | (926,936) | ||
Net finance income | 4,754 | 94 | 34,285 | ||
Loss before income taxation | (669,008) | (417,177) | (892,651) | ||
Income tax expense | (1,588) | - | - | ||
Loss for the period attributable to owners of the parent | (670,596) | (417,177) | (892,651) | ||
Loss attributable to non-controlling interests | 27,719 | - | - | ||
Loss for the period | (642,877) | (417,177) | (892,651) | ||
Loss per share - | |||||
Basic and diluted | (0.11)p | (0.08)p | (0.17)p |
Consolidated statement of financial position
As at 31 June 2012
30 June | 31 July | 31 December | |||
2012 | 2011 | 2011 | |||
(unaudited) | (unaudited) | (audited) | |||
£ | £ | £ | |||
ASSETS | |||||
Non-current assets | |||||
Property, plant and equipment | 30,227 | - | - | ||
Intangible assets | 3,070,477 | - | - | ||
Total non-current assets | 3,100,704 | - | - | ||
Current assets | |||||
Inventory | 4,070 | - | - | ||
Trade and other receivables | 165,256 | 469,642 | 727,287 | ||
Cash and cash equivalents | 443,411 | 1,552,783 | 919,427 | ||
Total current assets | 612,737 | 2,022,425 | 1,646,714 | ||
Total assets | 3,713,441 | 2,022,425 | 1,646,714 | ||
LIABILITIES | |||||
Current liabilities | |||||
Trade and other payables | (51,984) | (91,799) | (174,916) | ||
Total liabilities | (51,984) | (91,799) | (174,916) | ||
Net assets | 3,661,457 | 1,930,626 | 1,471,798 | ||
EQUITY | |||||
Equity attributable to owners of the parent | |||||
Called up share capital | 1,624,540 | 1,470,290 | 1,471,207 | ||
Share premium account | 5,085,030 | 4,803,281 | 4,821,530 | ||
Capital redemption reserve | 43,333 | 43,333 | 43,333 | ||
Merger reserve | 2,416,667 | - | - | ||
Retained earnings | (5,472,696) | (4,386,278) | (4,864,272) | ||
3,696,874 | 1,930,626 | 1,471,798 | |||
Non-controlling interests | (35,417) | - | - | ||
Total equity | 3,661,457 | 1,930,626 | 1,471,798 |
Statement of changes in equity
For the six months ended 31 June 2012
Capital | |||||||||||
Share | Share | Retained | redemption | Merger | |||||||
capital | premium | earnings | reserve | reserve | Total | ||||||
£ | £ | £ | £ | £ | £ | ||||||
Unaudited | |||||||||||
Balance at 1 January 2012 | 1,471,207 | 4,821,530 | (4,864,272) | 43,333 | - | 1,471,798 | |||||
Loss for the period | - | - | (642,877) | - | - | (642,877) | |||||
Issue of shares | 153,333 | 280,000 | - | - | - | 433,333 | |||||
Costs in respect of shares issued | - | (16,500) | - | - | (16,500) | ||||||
On acquisition of subsidiary | - | - | - | - | 2,416,667 | 2,416,667 | |||||
Share based payment | - | - | 34,453 | - | - | 34,453 | |||||
Balance at 30 June 2012 | 1,624,540 | 5,085,030 | (5,472,696) | 43,333 | 2,416,667 | 3,696,874 | |||||
Unaudited | |||||||||||
Balance at 1 February 2011 | 1,385,640 | 2,649,906 | (3,966,587) | 43,333 | - | 112,292 | |||||
Retained for the period | - | - | (417,177) | - | - | (417,177) | |||||
Issue of shares | 84,650 | 2,153,375 | - | - | - | 2,238,025 | |||||
Equity settled share based payment | - | - | (2,514) | - | - | (2,514) | |||||
Balance at 31 July 2011 | 1,470,290 | 4,803,281 | (4,386,278) | 43,333 | - | 1,930,626 | |||||
Audited | |||||||||||
Balance at 1 February 2011 | 1,385,640 | 2,649,906 | (3,966,587) | 43,333 | - | 112,292 | |||||
Retained for the period | - | - | (892,651) | - | - | (892,651) | |||||
Issue of shares | 85,567 | 2,263,100 | - | - | - | 2,348,667 | |||||
Costs in respect of shares issued | - | (91,476) | - | - | - | (91,476) | |||||
Equity settled share based payment | - | - | (5,034) | - | - | (5,034) | |||||
Balance at 31 December 2011 | 1,471,207 | 4,821,530 | (4,864,272) | 43,333 | - | 1,471,798 |
Cash flow statement
For the six months ended 31 June 2012
Six months ended | Six months ended | Year ended | ||||
30 June | 31 July | 31 December | ||||
2012 | 2011 | 2011 | ||||
(unaudited) | (unaudited) | (audited) | ||||
£ | £ | £ | ||||
Operating activities | ||||||
Operating loss | (673,762) | (417,271) | (926,936) | |||
Depreciation of property plant and equipment | 3,965 | - | - | |||
Decrease in inventory | 698 | - | - | |||
(Increase)/decrease in trade and other receivables | 21,733 | (236,413) | (462,689) | |||
Decrease in trade and other payables within one year | (128,003) | (37,803) | 45,314 | |||
Equity-settled share based payment | 34,453 | (2,514) | (5,034) | |||
Income tax paid | (1,176) | - | - | |||
Cash outflows from operating activities | (742,092) | (694,001) | (1,349,345) | |||
Investing activities | ||||||
Net finance income | 4,754 | 94 | 2,916 | |||
Payments to acquire intangible assets | (83,695) | - | - | |||
Payments to acquire tangible assets | (7,073) | - | - | |||
Purchase of subsidiary undertaking, net of cash acquired | 18,590 | - | - | |||
Net (cash used in)/generated from investing activities | (67,424) | 94 | 2,916 | |||
Financing activities | ||||||
Issue of share capital | 350,000 | 2,238,025 | 2,348,667 | |||
Costs in respect of share issue | (16,500) | - | (91,476) | |||
Net cash generated from financing activities | 333,500 | 2,238,025 | 2,257,191 | |||
Net (decrease)/increase in cash and cash equivalents | (476,016) | 1,544,118 | 910,762 | |||
Cash and cash equivalents at start of period | 919,427 | 8,665 | 8,665 | |||
Cash and cash equivalents at end of period | 443,411 | 1,552,783 | 919,427 |
Notes to the interim financial statements
1. General information
Premier Gold Resources Plc is a company incorporated in the United Kingdom, which is listed on the AIM market of the London Stock Exchange Plc. The address of its registered office is Stonebridge House, Chelmsford Road, Hatfield Heath, Essex CM22 7BD.
2. Financial information
The interim financial information for the six months ended 30 June 2012 has not been audited or reviewed and does not constitute statutory accounts within the meaning of Section 434 of the Companies Act 2006. The comparative financial information for the period ended 31 December 2011 has been derived from the audited financial statements for that year. A copy of those statutory financial statements for the year ended 31 December 2011 has been delivered to the Registrar of Companies. The report of the independent auditors on those financial statements was unqualified and did not contain a statement under Sections 498 (2) or (3) of the Companies Act 2006.
The interim financial statements have been prepared in accordance with International Financial Reporting Standards ('IFRS') as adopted by the European Union, IFRIC interpretations and the Companies Act 2006 applicable to companies reporting under IFRS and under the historical cost convention. The accounting policies applied in preparing the interim financial information are consistent with those set out in the statutory accounts of the Company for the period ended 31 December 2011. In addition, the following accounting policies have been applied.
Basis of consolidation
The Group's interim financial information consolidates the financial information of the Company and all its subsidiary undertakings made up to 30 June 2012. Profits and losses on intra-group transactions are eliminated on consolidation.
Business combinations
The Group adopts the acquisition method in accounting for the acquisition of subsidiaries. On acquisition the cost is measured at the fair value of the assets given, plus equity instruments issued and liabilities incurred or assumed at the date of exchange. The assets acquired and liabilities and contingent liabilities assumed in a business combination are measured at their fair value at the date of acquisition. Any excess of the fair value of the consideration over the fair value of the identifiable net assets acquired is recorded as goodwill.
Any deficiency of the fair value of the consideration below the fair value of identifiable net assets acquired is credited to the income statement in the period of the acquisition.
The results of subsidiary undertakings acquired or disposed of during the year are included in the group statement of comprehensive income from the effective date of acquisition or up to the effective date of disposal.
Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by the group. Inter-company transactions and balances between group companies are eliminated.
Intangible assets
Exploration and evaluation assets
Capitalisation
Certain costs (other than payments to acquire the legal right to explore and costs which are directly attributable to those payments) incurred prior to acquiring the rights to explore are charged directly to the income statement. All costs incurred after the rights to explore an area have been obtained, such as geological and geophysical costs and other direct costs of exploration and appraisal are accumulated and capitalised as intangible exploration and evaluation ("E&E") assets. These costs are only carried forward to the extent that they are expected to be recouped through the successful development of the areas or where activities in the areas have not yet reached a stage which permits reasonable assessment of the existence of economically recoverable reserves.
E&E costs are not amortised prior to the conclusion of appraisal activities.
At completion of appraisal activities, if technical feasibility is demonstrated and commercial reserves are discovered, then, following development sanction, the carrying value of the relevant E&E asset will be reclassified as a development and production ("D&P") asset, but only after the carrying value of the relevant E&E asset has been assessed for impairment, and where appropriate, its carrying value adjusted. If after completion of appraisal activities in the area, it is not possible to determine technical feasibility and commercial viability or if the legal right to explore expires or if the Company decides not to continue exploration and evaluation activity, then the costs of such unsuccessful exploration and evaluation are written off to the income statement in the period the relevant events occur.
Impairment
If and when facts and circumstances indicate that the carrying value of an E&E asset may exceed its recoverable amount an impairment review is performed.
For E&E assets when there are such indications, an impairment test is carried out by grouping the E&E assets with the D&P assets belonging to the same geographic segment to form the Cash Generating Unit ("CGU") for impairment testing. The equivalent combined carrying value of the CGU is compared against the CGU's recoverable amount and any resulting impairment loss is written off to the income statement. The recoverable amount of the CGU is determined as the higher of its fair value less costs to sell and its value in use.
Goodwill
At the date of acquisition of a subsidiary undertaking, fair values are attributed to the acquired identifiable assets, liabilities and contingent liabilities. Goodwill represents the difference between the fair value of the purchase consideration and the acquired interest in the fair value of those net assets.
Goodwill is initially recognised at fair value. Any negative goodwill is credited to the income statement in the year of acquisition. If an undertaking is subsequently sold, the amount of goodwill carried on the balance sheet at the date of disposal is charged to the income statement in the period of disposal as part of the gain or loss on disposal.
Goodwill is associated with exploration and evaluation assets, the impairment of which is discussed in the accounting policy note for exploration and evaluation assets.
3. Taxation
On the basis of these accounts there is no tax charge for the period.
4. Earnings per share
The earnings and number of shares used in the calculation of earnings per share are as follows:
Six months ended | Six months ended | 11 months ended | ||||
30 June | 31 July | 31 December | ||||
2012 | 2011 | 2011 | ||||
(unaudited) | (unaudited) | (audited) | ||||
Basic and diluted | ||||||
Loss for the financial period | (670,596) | (417,177) | (892,651) | |||
Weighted average number of shares | 616,488,833 | 501,315,603 | 511,292,722 | |||
Loss per share | (0.11)p | (0.08)p | (0.17)p |
There was no dilutive effect in respect of the share options and warrants outstanding during the period.
5. Dividends
The directors do not propose to declare a dividend for the period.
6. Share capital
On 30 March 2012, the company issued 83,333,333 ordinary shares of 0.1p to the vendors of the whole of the issued share capital of Central Asia Resources Limited, with an implied fair value of 3p per share.
On 2 May 2012, the company placed 70,000,000 ordinary shares of 0.1p each at 0.5p per share, raising £350,000, before expenses.
7. Copies of interim results
Copies of the interim results can be obtained from the website www.premiergoldresources.com. From this site you can access our financial reports and presentations, recent press releases and details about the company and its operations.