23 Sep 2011 07:00
SOVEREIGN MINES OF AFRICA PLC
("the Company")
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2011
CHAIRMAN'S STATEMENT
Dear Shareholder
For the six months ended 30th June, 2011, the Company reported a net loss of £133,612. On the 31st July, following the end of the period under review, the Company moved from PLUS Markets to AIM and raised a further £1.25 million before expenses. As previously announced, a maiden diamond drilling programme commenced at SMG's Mandiana Magana property on the 29th June. Unfortunately, the rainy season has been far worse than normal this year and when ground which had previously been intensively worked by artisans became water-logged, the drilling company found it impossible to generate any momentum or to retrieve consistently acceptable core values.
The Contractors have agreed to move back on site as soon as conditions permit and we are actively searching for a reverse circulation drill to supplement the diamond drilling programme. The price of gold and the increasing number of recent discoveries in West Africa have created a world-wide shortage of the type of equipment we require, but we are in contact with several sources and shareholders will be kept informed of any progress.
These delays have not, however, in any way diminished our previous assessment of the potential of this exceptional property and the results of initial exploration work at SMG's other four properties have proved encouraging.
David B. Pearl FCA
Chairman
22 September 2011
Enquiries:
David Pearl, FCA | + 353 (0) 696 8961 |
Chairman | |
Nathan Steinberg | + 44 207 269 7680 |
Finance Director | |
Shore Capital - Nominated Adviser and Broker | + 44 207 408 4090 |
Toby Gibbs/Bidhi Bhoma - Corporate Finance | |
Jerry Keen - Corporate Broking | |
Rivington Street Corporate Finance - Joint Broker | + 44 207 562 3357 |
Jon Levinson - Corporate Broking | |
Square1 Consulting Limited | + 44 207 929 5599 |
David Bick/Mark Longson |
CHANGE OF REGISTERED OFFICE
The Company's registered office, with effect from 22 September 2011, has changed to:
New Penderel House
283-288 High Holborn
London WC1V 7HP
SOVEREIGN MINES OF AFRICA PLC
UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Six months ended 30 June 2011
Notes |
| ||||||||
Six months ended 30/6/11 unaudited £ | Period 28/1/10 to 30/6/10 unaudited £ | Period 28/1/10 to 31/12/10 audited £ |
| ||||||
Administrative expenses - (operating loss) | (136,090) | (419,425) | (533,859) |
| |||||
| |||||||||
Interest receivable | 2,478 | - | 1,596 |
| |||||
| |||||||||
Interest payable | - | - | (111) |
| |||||
Loss on ordinary activities before taxation | (133,612) | (419,425) | (532,374) | ||||||
| |||||||||
Tax on loss on ordinary activities | - | - | - |
| |||||
| |||||||||
Loss for the financial period | (133,612) | (419,425) | (532,374) |
| |||||
=========== | =========== | =========== |
| ||||||
| |||||||||
Other comprehensive income | - | - | - |
| |||||
| |||||||||
Total comprehensive income for the period | (133,612) | (419,425) | (532,374) |
| |||||
=========== | =========== | =========== |
| ||||||
Loss for the period and Total comprehensive loss attributable to: |
| ||||||||
Owners of the parent | (133,612) | (419,425) | (532,374) |
| |||||
Non-controlling interest | - | - | - |
| |||||
(133,612) | (419,425) | (532,374) |
| ||||||
=========== | =========== | =========== |
| ||||||
| |||||||||
Loss per ordinary share (pence) - From continuing operations: basic and diluted | 4 | (0.09)p | (0.35)p | (0.41)p |
| ||||
SOVEREIGN MINES OF AFRICA PLC
UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2011
As at | As at | As at | ||||
30/06/11 | 30/06/10 | 31/12/10 | ||||
Note | Unaudited | Unaudited | Audited | |||
£ | £ | £ | ||||
FIXED ASSETS |
| |||||
Intangible assets | 1,070,170 | 137,531 | 427,912 |
| ||
------------------ | ------------------ | ------------------ |
| |||
| ||||||
CURRENT ASSETS |
| |||||
Cash and cash equivalents | 1,333,841 | 1,300,208 | 915,222 |
| ||
------------------ | ------------------ | ------------------ |
| |||
CURRENT LIABILITIES |
| |||||
Trade and other payables | (34,157) | (25,250) | (43,594) |
| ||
----------------- | ----------------- | ------------------ |
| |||
NET CURRENT ASSETS | 1,299,684 | 1,274,958 | 871,628 |
| ||
---------------- | ---------------- | ------------------ |
| |||
NET ASSETS | 2,369,854 | 1,412,489 | 1,299,540 |
| ||
=========== | =========== | =========== |
| |||
| ||||||
EQUITY ATTRIBUTABLE TO EQUITY |
| |||||
HOLDERS OF THE COMPANY |
| |||||
Share capital | 1,531,922 | 1,399,022 | 1,399,022 |
| ||
Share premium account | 2,090,018 | 1,018,992 | 1,018,992 |
| ||
Reconstruction reserve | (586,100) | (586,100) | (586,100) |
| ||
Retained earnings | (665,986) | (419,425) | (532,374) |
| ||
---------------- | ---------------- | ---------------- |
| |||
TOTAL EQUITY | 2,369,854 | 1,412,489 | 1,299,540 |
| ||
=========== | =========== | =========== |
| |||
Net assets per share (pence) - basic | 5 | 1.55p | 1.01p | 0.92p |
======== | ======== | ======== |
SOVEREIGN MINES OF AFRICA PLC
UNAUDITED CONSOLIDATED CASH FLOW STATEMENT
Six months ended 30 June 2011
Six months | Period 28/1/10 | Period 28/1/10 | ||
to 30/06/11 | to 30/06/10 | to 31/12/10 | ||
| Unaudited | Unaudited | Audited | |
£ | £ | £ | ||
Net cash outflow from operating activities | 3 | (145,527) | (394,175) | (488,780) |
------------------------------------------- | --------------------------------------------------- | --------------------------------------------------- | ||
Cash flows from investing activities | ||||
Purchase of intangible fixed assets | (642,258) | (137,531) | (427,912) | |
------------------------------------------- | --------------------------------------------------- | --------------------------------------------------- | ||
(642,258) | (137,531) | (427,912) | ||
Cash flows from financing activities | ||||
Net proceeds from issue of share capital | 1,203,926 | 1,311,014 | 1,311,014 | |
Issue of shares prior to incorporation of Sovereign Mines of Africa Plc | - | 520,900 | 520,900 | |
Interest received | 2,478 | - | - | |
------------------------------------------- | --------------------------------------------------- | --------------------------------------------------- | ||
1,206,404 | 1,831,914 | 1,831,914 | ||
Net increase in cash and cash equivalents | 418,619 | 1,300,208 | 915,222 | |
Cash and cash equivalents at beginning of period | 915,222 | - | - | |
------------------------------------------- | --------------------------------------------------- | --------------------------------------------------- | ||
Cash and cash equivalents at end of period | 1,333,841 | 1,300,208 | 915,222 | |
=========================================== | =================================================== | =================================================== | ||
|
SOVEREIGN MINES OF AFRICA PLC
UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY Six months ended 30 June 2011
|
SOVEREIGN MINES OF AFRICA PLC
Notes to the consolidated financial information
Six months ended 30 June 2011
1. GENERAL
The interim financial information for the six month period ended 30 June 2011 are unaudited and were approved by the Directors of the Company on 22 September 2011. The condensed financial information set out above does not constitute statutory accounts within the meaning of Section 434 of the Companies Act 2006.
The financial information contained in this report in respect of the annual financial statements for the period ended 31 December 2010 has been extracted from the report and financial statements for that year which have been filed with the Registrar of Companies. The report of the auditors on those accounts did not contain a statement under section 498(2) or (3) of the Companies Act 2006 and was not qualified.
The interim financial information is unaudited and has not been reviewed by the auditors.
The Company's operations are not subject to seasonality or cyclicality.
No dividend has been declared or paid in this interim period.
2. ACCOUNTING POLICIES
The principal accounting policies and methods of computation have remained unchanged from those used in the preparation of the Company's 2010 annual financial statements.
3. CASH FLOWS FROM OPERATING ACTIVITIES
Six months | Period 28/1/10 | Period 28/1/10 | |
to 30/06/11 | to 30/06/10 | to 31/12/10 | |
Unaudited | Unaudited | Audited | |
£ | £ | £ | |
Loss before taxation | (133,612) | (419,425) | (532,374) |
Adjustments for: | |||
Interest income | (2,478) | - | - |
------------------- | ------------------- | -------------------- | |
(136,090) | (419,425) | (532,374) | |
Increase/(decrease) in payables | (9,437) | 25,250 | 43,594 |
---------------- | --------------- | ---------------- | |
Net cash from operating activities | (145,527) | (394,175) | (488,780) |
============= | ============= | =============
|
SOVEREIGN MINES OF AFRICA PLC
Notes to the condensed financial information
Six months ended 30 June 2011
4. LOSS PER SHARE
Six months | Period 28/1/10 | Period 28/1/10 | ||
to 30/06/11 | to 30/06/10 | to 31/12/10 | ||
| Unaudited | Unaudited | Audited | |
Weighted average number of ordinary shares in issue | 147,685,277 | 121,042,882 | 128,918,746 | |
--------------------------------------- | ---------------------------------------- | ------------------------------------------- | ||
(Loss)/profit after taxation | £(133,612) | £(419,425) | £(532,374) | |
-------------------------------------- | ---------------------------------------- | ------------------------------------------- | ||
(Loss)/earnings per share | (0.09)p | (0.35)p | (0.41)p | |
======================================= | ======================================== | ============================================== |
Due to there being a loss during the period the share options are anti-dilutive and therefore no diluted loss per share has been presented.
5. NET ASSET VALUE PER SHARE
The "basic" net asset value per share figures are calculated on the basis of the net assets attributable to equity shareholders divided by the number of ordinary shares in issue at the relevant dates.
6 ISSUE OF SHARES
On 17 March 2011, the Company raised £1,329,000 before expenses by issuing 13,290,000 ordinary shares of £0.01 at £0.10 per share.
7 POST BALANCE SHEET EVENT
On 28 July 2011, the Company raised £1,250,000 before expenses by issuing 12,500,000 ordinary shares of £0.01 at £0.10 per share.
8 COPIES OF INTERIM REPORT
Copies of the interim report are available to the public free of charge from the Company at 2nd Floor, New Penderel House, 283-288 High Holborn, London WC1V 7HP during normal office hours, Saturdays and Sundays excepted, for 14 days from today and are available on the website at www.sovmines.com.