Sovereign Mines of Africa Regulatory News (SMA)

RNS Number : 8742K

Sovereign Mines of Africa PLC

27 September 2016

 

27 September 2016

 

Sovereign Mines of Africa PLC

("SMA" or "the Company")

 

Interim Results

 

Sovereign Mines of Africa PLC (AIM: SML), today announces its interim results for the six months ended 30th June 2016.

 

 

Enquiries:

 

SOVEREIGN MINES OF AFRICA PLC

Giles Clarke - c/o Billy Clegg +44 20 3757 6983

 

SHORE CAPITAL - NOMINATED ADVISER & BROKER

Toby Gibbs - Corporate Finance

Jerry Keen - Corporate Broking +44 207 408 4090

 

CAMARCO

Gordon Poole / Sean Blundell +44 20 3757 6983

 

 

 

CHAIRMAN'S STATEMENT

 

Since our appointment to the Board in December 2015, Rupert Fraser and I have been conducting a strategic review of the company's assets and activities with a view to enhancing shareholder value. We look forward to setting out our vision and strategy for the businesses in the near future. As previously stated our plans for the business may well involve the pursuit of an acquisition which would trigger a reverse takeover under the AIM Rules.

 

Following SMA's successful fundraise at the end of 2015, in which both Rupert and I invested in to provide additional funding to the Company, it had cash resources of approximately £452,000 at 30 June 2016. The Company reports a net loss of £43,795 for the six-month period ended 30 June 2016, compared to a loss of £41,351 for the corresponding period in 2015.

 

Post period end, we were delighted to announce the appointment of Jeremy Sparrow to the Board as a Non-executive Director. Jeremy brings over 25 years of investment experience to the Company and was most recently Head of Investec Resource Investment Banking for Asia and Australia. We are confident his deep sector knowledge and expertise will augment the board's existing skills and add significant value ahead of our next stage of growth and as we implement the new strategy.

 

Following careful investigations, and having taken considerable specialist professional advice, the Board has reached detailed positions and is in advanced discussions with potential parties on both our Guinean interests, currently carried in the books at nil value, and on a potential new acquisition in the mining industry. I hope to provide updates shortly.

 

C G Clarke

Chairman

26 September 2016

 

 

 

 

 

UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

 

Six months ended 30 June 2016

		Notes
				Six months ended 30/06/16 Unaudited £		Six months ended 30/06/15 Unaudited £	Year ended 31/12/15 Audited £
Administrative expenses - (operating loss)				(44,976)		(47,333)	(1,418,432)
Finance income				1,181		494	557
				------------------		------------------	------------------
Loss on ordinary activities before taxation				(43,795)		(84,739)	(1,417,875)
Tax on loss on ordinary activities				-		-	-
Loss for the financial period				(43,795)		(46,839)	(1,417,875)
				===========		===========	===========
Other comprehensive income				-		-	-
Total comprehensive income for the period				(43,795)		(46,839)	(1,417,875)
				===========		===========	===========
Loss for the period and Total comprehensive loss attributable to:
Owners of the parent				(43,795)		(46,839)	(1,417,875)
Non-controlling interest				-		-	-
				(43,795)		(46,839)	(1,417,875)
				===========		===========	===========
Loss per ordinary share (pence) - From continuing operations: basic and diluted		4		(0. 005)p		(0. 02)p	(0.45)p

 

 

 

 

 

UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 June 2016

 

 

			As at	As at	As at
			30/06/16	30/06/15	31/12/15
	Note		Unaudited	Unaudited	Audited
			£	£	£
FIXED ASSETS
Intangible assets		-		1,275,059	-
			------------------	------------------	------------------
CURRENT ASSETS
Cash and cash equivalents			452,866	99,663	501,170
			------------------	------------------	------------------
			452,866	99,663	501,170
CURRENT LIABILITIES
Trade and other payables			(27,131)	(65,683)	(37,443)
			-----------------	-----------------	------------------
NET CURRENT ASSETS			425,735	33,979	463,727
			----------------	----------------	------------------
NET ASSETS			425,735	1,309,039	463,727
			===========	===========	===========
EQUITY ATTRIBUTABLE TO EQUITY
HOLDERS OF THE COMPANY
Share capital			3,163,589	3,108,589	3,163,589
Share premium account			5,563,520	5,099,544	5,563,520
Reconstruction reserve			(586,100)	(586,100)	(586,100)
Share-based payment reserve			32,493	19,942	26,690
Retained earnings			(7,747,767)	(6,332,936)	(7,703,972)
			----------------	----------------	----------------
TOTAL EQUITY			425,735	1,309,039	463,727
			===========	===========	===========

 

 

Net assets per share (pence) - basic	5	0.050p	0.0042p	0.054 p
		========	========	========

 

 

 

 

 

 

UNAUDITED CONSOLIDATED CASH FLOW STATEMENT

Six months ended 30 June 2016

 

 

		Six months	Six months	Year ended
		to 30/06/16	to 30/06/15	31/12/15
		Unaudited	Unaudited	Audited
		£	£	£
Net cash outflow from operating activities	3	(49,485)	(34,621)	((149,153))
		-------------------------------------------	-------------------------------------------	---------------------------------------------------
Cash flows from investing activities
Purchase of intangible fixed assets		-	(116,161)	(119,161)
		-------------------------------------------	-------------------------------------------	---------------------------------------------------
		(49,485)	(116,161)	(119,161)
Cash flows from financing activities
Net proceeds from issue of share capital		-	-	518,976
Finance income		1,181	494	557
		-------------------------------------------	-------------------------------------------	---------------------------------------------------
		1,181	494	519,533
Net (decrease)/ increase in cash and cash equivalents		(48,304)	(150,289)	251,219
Cash and cash equivalents at beginning of period		501,170	249,951	249,951
		-------------------------------------------	-------------------------------------------	---------------------------------------------------
Cash and cash equivalents at end of period		452,866	99,663	501,170
		===========================================	===========================================	===================================================

 

 

UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

Six months ended 30 June 2016

 

Share capital Share premium Reconstruction reserve Retained earnings Share-based payment reserve Total   £ £ £ £ £ £ At 1 January 2015 3,108,589 5,099,544 (586,100) (6,286,097) 14,454 1,350,390     Loss and total comprehensive income for six months ended 30 June 2015 - - - (46,839)           - (46,839) Share-based payment expense   -   -   -   -   5,488 5,488   ________ ________ ________ ________ _______ ________ At 30 June 2015 3,108,589 5,099,544 (586,100) (6,332,936) 19,942 1,309,039   Loss and total comprehensive income for six months ended 31 December 2015 - - - (1,371,036)           - (1,371,036) Share-based payment expense   -   -   -   -   6,748   6,748 Issue of shares, net of share issue costs   55,000   463,976         518,976   ________ ________ ________ ________ ________ ________ At 31 December 2015 3,163,589 5,563,520 (586,100) (7,703,972) 26,690 463,727   Loss and total comprehensive income for six months ended 30 June 2016       (43,795)   (43,795) Share-based payment expense           5,803 5,803   ________ ________ ________ ________ _______ ________ At 30 June 2016 3,163,589 5,563,520 (586,100) (7,747,767) 32,493 425,735   ======= ======== ======== ======= ======= ========

 

 

SOVEREIGN MINES OF AFRICA PLC

 

Notes to the interim consolidated financial information

 

Six months ended 30 June 2016

 

1. GENERAL

 

The interim financial information for the six-month period ended 30 June 2016 are unaudited and were approved by the Directors of the Company on 26 September 2016. 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 year ended 31 December 2015 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, although it included an emphasis of matter in respect of going concern.

 

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 2015 annual financial statements and are expected to be used for the Company's 2016 annual financial statements.

 

 

3. CASH FLOWS FROM OPERATING ACTIVITIES

 

	Six months	Six months	Year ended
	to 30/06/16	to 30/06/15	31/12/15
	Unaudited	Unaudited	Audited
	£	£	£
Loss before taxation	(43,795)	(46,839)	(1,417,875)
Adjustments for:
Impairment losses on intangible assets	-	-	1,278,059
Finance income	(1,181)	(494)	(557)
Share-based payment expense	5,803	5,488	12,236
	-------------------	-------------------	--------------------
	(39,173)	(41,845)	(128,137)
Decrease in financial assets at fair value	-	-	-
Increase in receivables	-	-	-
Increase/(decrease) in payables	(10,312)	7,224	(21,016)
	----------------	----------------	----------------
Net cash used in operating activities	(49,485)	(34,621)	(149,153)
	=============	=============	=============

 

 

 

4. LOSS PER SHARE

		Six months	Six months	Year ended
		to 30/06/15	to 30/06/15	31/12/15
		Unaudited	Unaudited	Audited
Weighted average number of ordinary shares in issue		860,858,859	310,858,850	312,363,590
		------------------------	-------------------------	-----------------------------
Loss after taxation		£(43,795)	£(46,839)	£(1,417,875)
		-----------------------	-------------------------	-----------------------------
Loss per share		(0. 005)p	(0. 02)p	(0.45)p
		==============	===============	===================

Due to there being a loss during the period, the share options are anti-dilutive and therefore the diluted loss per share is the same as the loss per share.

 

 

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 of 860,859,050 (30 June 2015: 310,858,850; 31 December 2015: 860,858,850).

 

6. SHARE CAPITAL

 

Issued and fully paid:

	2016	2015	2016	2015
	No. of shares	No. of shares	£	£
Ordinary shares of £0.0001 each	860,859,050	310,858,850	3,163,589	31,086
Deferred shares of £0.099 each	-	310,858,850	-	3,077,503
	---------------	---------------	------------	------------
	621,717,700	310,858,850	3,163,589	3,108,589
	========	========	======	======

 

The deferred shares carry no voting or dividend rights. Deferred shareholders are entitled to receive the amount paid up or credited as paid up on their respective holdings of deferred shares only after there has been paid on each ordinary share the nominal amount paid up on such share plus a further £1 per ordinary share. The holders of the deferred shares shall not be entitled to participate further in any distribution of the assets or the capital of the Company.

 

 

7. COPIES OF INTERIM REPORT

 

Copies of the interim report are available to the public free of charge from the Company at Lakeside Fountain Lane, St Mellons, Cardiff, United Kingdom, CF3 0FB during normal office hours, Saturdays and Sundays excepted, for 14 days from today and are available on the website at www.sovmines.com.

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