Sable Mining Africa Regulatory News (SBLM)

21 Dec 2009 07:00



Sable Mining Africa Ltd/ Index: AIM / Epic: SBLM / Sector: General Financial

21 December 2009

Sable Mining Africa Ltd ('Sable' or 'the Company')

Interim Results

Sable Mining Africa Ltd, the AIM listed company focused in the mining sector in sub-Saharan Africa, announces its results for the six months to 30 September 2009.

Chairman's Statement

Since my last report to shareholders, we have dramatically changed the focus of the business. Having strengthened our balance sheet following a placing to raise £27 million, we are now centred on evaluating a number of significant resource projects in sub-Saharan Africa that we believe will benefit from our experience and support and in turn ensure that the Company is best utilised to create value for shareholders.

As outlined in the statement I made in the Company's Annual Report and Accounts sent to shareholders in September 2009, the Board felt that, due to the global economic climate, shareholders would gain most from a fundamental change in strategy entailing a move away from bio-ethanol related assets and into mining related energy assets. Accordingly, the new strategy to invest in early stage mining opportunities in sub-Saharan Africa and the change of name to Sable Mining Africa Limited were confirmed and effected in November 2009, following an Extraordinary General Meeting.

Sable Mining is now focussed on the acquisition or investment in early stage coal and uranium assets or businesses, with a particular emphasis on Namibia, Botswana, Zimbabwe and Zambia, although other locations in sub-Saharan Africa are also being considered if they meet our investment criteria. The Company intends to be an active investor, adding substantial value, both operationally and strategically, to the businesses or assets it acquires or invests in. Our objective is to own entire or majority interests in suitable businesses or assets rather than holding minority investments. This will provide shareholders with maximum exposure to the uplift in value that we believe we can bring to exploration and development projects in the mining sector.

To facilitate the new strategy, the Company undertook a fundraising, via a placing of new ordinary shares, in December 2009. This was well received by the investment community, gaining strong support from new and existing institutional investors and subsequently raising £27 million. I believe that the support confirmed through this process underpins the confidence in Sable Mining's new strategy and conviction in its ability to deliver results to shareholders.

Financial Performance

Following our strategy shift, we decided to impair our 94% investment in Procana Limitada, the company which wholly owns the Massingir bio-ethanol/sugarcane project. However, we remain committed to maximising the value of this asset and are currently evaluating options to achieve this. As a result of the impairment, Sable Mining is reporting a pre-tax loss of US$ 47.7 million for the six month period ended 30 September 2009 (2008: $0.6m). At 30 September cash balances were $12m (2008: $25.4m)

Following the placing of 270,000,000 new ordinary shares on 10 December 2009 with new and existing shareholders at a price of 10 pence per placing share raising £27 million before expenses, our cash balance currently stands at US$55 million.

Outlook

The Board is committed to identifying and evaluating suitable assets and businesses, which will provide shareholders with early exposure to mining projects in under-developed locations that can attract substantial foreign investment and have the potential for rapid sustainable growth. Collectively, with its wealth of experience working with and for companies operating in Africa, I believe the Board has the ability to achieve this strategy.

We will keep shareholders abreast of all developments during this exciting and transformational period in the Company's life, and thank our investors for their continued support.

Phil Edmonds

Chairman

18 December 2009

Unaudited Group Income Statement

For the six month period to 30 September 2009

All financial results presented are from continuing operations

Unaudited Statement of Other Comprehensive Income

For the six month period to 30 September 2009 

Unaudited Statement of Financial Position

As at 30 September 2009

Unaudited Statement of Cash Flows

For the six months to 30 September 2009 

Notes to the Unaudited Interim Group Financial Statements

Sable Mining Limited is incorporated in the British Virgin Islands under the British Virgin Islands Business Companies Act 2004. The address of the registered office is Romasco Place, Wickhams Cay 1, PO Box 3140, Road Town, Tortola, British Virgin Islands. The Company was incorporated on 27 April 2007. Accordingly the comparative financial statements are for the 23 month period ended 31 March 2009.

The Company is listed on the AIM Market of London Stock Exchange plc.

The Unaudited Interim Group Financial Statements for the six months ended 30 September 2009 were approved for issue by the board on 18 December 2009.

The figures for the six months ended 30 September 2009 and the period ended 30 September 2008 are unaudited and do not constitute full accounts. The comparative figures for the period ended 31 March 2009 are extracts from the annual report and do not constitute statutory accounts.

The basis of preparation and accounting policies set out in the Annual Report and Accounts for the period ended 31 March 2009 have been applied in the preparation of these interim condensed consolidated financial statements, with the exceptions disclosed in note 3. These are in accordance with the recognition and measurement criteria of International Financial Reporting Standards (IFRSs) as adopted by the European Union (EU) and with those of the Standing Interpretations issued by the International Financial Reporting Interpretations Committee (IFRIC) of the International Accounting Standards Board (IASB). References to 'IFRS' hereafter should be construed as references to IFRSs as adopted by the EU

The accounting policies and methods of calculation adopted are consistent with those of the financial statements for the period ended 31 March 2009, as described in those annual financial statements, except as discussed below.

The Group has applied IAS 1 Revised "Presentation of Financial Statements" and IFRS 8 "Operating Segments" as of 1 January 2009. In accordance with IAS 1 the financial statements have been re-titled and a consolidated statement of other comprehensive income produced. IFRS 8 states that segment information should be based on management's internal reporting structure and accounting principles.

As disclosed in the financial statements for the period ended 31 March 2009, the Group's segment information has already been based on the management reporting structure and therefore the operating segments are the same as previously reported.

See the Report and Accounts for the period ended 31 March 2009 for disclosures of new standards, amendments and interpretations which have been adopted, none of which have had a significant effect on the reported results or financial position of the Group for the period ended 30 September 2009.

The Company held the proceeds from the initial fundraising in sterling whilst it evaluated its investment opportunities. Prior to the acquisition of Procana, sterling depreciated against the US Dollar in the prior period and appreciated in the current period.

Following the change in investment strategy, the Company considers the value of its investment in 94% of Procana Limitada, to be impaired. The impairment charge comprises the following:

The calculation of basic and diluted loss per share is based on the following data:

Due to the loss incurred in the period, there is no dilutive effect of share options.

There was no ordinary shares issuedin the period between 31 March 2009 and 30 September 2009. 

The Company has one class of ordinary share which carries no right to fixed income.

On 30 March 2009, the Directors announced a strategy review due to the worsening economic climate, which focussed on the reduction of overheads and the preservation of cash. After reviewing the Company's development plan the Directors have concluded that the Company and its shareholders would benefit from a more fundamental change of strategy. On the 6 October 2009 it was announced that Company suspended further material investment in the Massingir Project and adopted new investing policy. On 4 November 2009 BioEnergy Africa Limited changed its name to Sable Mining Africa Limited. 

The investing policy is focussed on the acquisition or investment in early stage coal, and uranium businesses or assets, with a particular emphasis on Namibia, Botswana, Zimbabwe and Zambia.

The underlying objective of the Company is to benefit from early exposure to mining businesses or assets in under-developed locations, which have the potential to attract substantial foreign investment and which have the potential for rapid sustainable growth.

To facilitate the new strategy, on 10 December 2009 Company, announced that it has conditionally raised £27 million (before expenses) by way of a placing of 270,000,000 new ordinary shares in the capital of the Company with new and existing shareholders at a price of 10 pence per ordinary share.