15 Sep 2014 07:00
Sovereign Mines of Africa Plc
("SMA" or "the Company")
Interim Results for the six months ended 30 June 2014
Sovereign Mines of Africa PLC (AIM:SML), the gold mining exploration Company with properties in the Republic of Guinea in West Africa, today announces its Interim Results for the six months ended 30 June 2014.
Enquiries:
SOVEREIGN MINES OF AFRICA PLC
David Pearl, F.C.A. - Chairman +353 696 8961
david.pearl@pearlcp.com
John Barry - Exploration Director +353 8 7669 5608
Nathan Steinberg - Finance Director +44 20 7269 7680
SHORE CAPITAL - NOMINATED ADVISER & BROKER
Toby Gibbs/Bidhi Bhoma - Corporate Finance
Jerry Keen - Corporate Broking +44 20 7408 4090
SOVEREIGN MINES OF AFRICA PLC
INTERIM REPORT AND UNAUDITED INTERIM FINANCIAL INFORMATION
FOR THE SIX MONTHS ENDED 30 JUNE 2014
CHAIRMAN'S STATEMENT
Dear Shareholder
The Company reports a net loss of £84,739 for the six-month period ended 30 June 2014, compared to a loss of £697,158 for the corresponding period in 2013. These figures reflect the realisation of the Company's listed investment at a loss of £2,086, compared to an unrealised loss of £552,200 for the corresponding period in 2013.
On 25 March 2014, the company raised additional working capital of £625,000 through a placing of 62,500,000 new ordinary shares with institutional and other investors at a price of 1p each.
It is encouraging to note that in recent months several more advanced gold projects in the region have been able to raise substantial funds, indicating a potential return of investor appetite for gold projects.
Our Mandiana property benefits from an exceptional depth of weathering, extending to 140 metres in places, which provides deep oxides potentially amenable to low-cost bulk mining and easy processing of ores. Unfortunately, in common with other mining exploration companies operating in Guinea, our exploration activities have been curtailed by the recent Ebola epidemic and at present we are uncertain as to when these can resume.
In order to help develop our project we are continuing to search for a strategic partner or a complementary acquisition. However, with cash resources as at today's date of approximately £375,000, we consider that the Company will have sufficient funds to retain its licences for the foreseeable future, on the basis that market conditions will hopefully improve.
David B. Pearl FCA
Chairman
12 September 2014
UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Six months ended 30 June 2014
Notes |
| ||||||
Six months ended 30/06/14 Unaudited £ | Six months ended 30/06/13 Unaudited £ | Year ended 31/12/13 Audited £ | |||||
Administrative expenses - (operating loss) | (83,597) | (146,816) | (351,995) | ||||
Loss on financial assets at fair value | (2,086)
|
| (552,200)
| (574,006) | |||
Finance income | 944 | 1,858 | 2,926 | ||||
------------------ | ------------------ | ------------------ | |||||
Loss on ordinary activities before taxation | (84,739) | (697,158) | (923,075) | ||||
Tax on loss on ordinary activities | - | - | - | ||||
Loss for the financial period | (84,739) | (697,158) | (923,075) | ||||
=========== | =========== | =========== | |||||
Other comprehensive income | - | - | - | ||||
Total comprehensive income for the period | (84,739) | (697,158) | (923,075) | ||||
=========== | =========== | =========== | |||||
Loss for the period and Total comprehensive loss attributable to: | |||||||
Owners of the parent | (84,739) | (697,158) | (923,075) | ||||
Non-controlling interest | - | - | - | ||||
(84,739) | (697,158) | (923,075) | |||||
=========== | =========== | =========== | |||||
Loss per ordinary share (pence) - From continuing operations: basic and diluted | 4 | (0. 03)p | (0.30)p | (0.39)p | |||
UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 June 2014
As at | As at | As at | ||||
30/06/14 | 30/06/13 | 31/12/13 | ||||
Note | Unaudited | Unaudited | Audited | |||
£ | £ | £ | ||||
FIXED ASSETS |
| |||||
Intangible assets | 4,716,316 | 3,903,545 | 4,489,678 |
| ||
------------------ | ------------------ | ------------------ |
| |||
| ||||||
CURRENT ASSETS |
| |||||
Financial assets at fair value through profit and loss | - | 39,800 | 18,000 |
| ||
Trade and other receivables | - | 398,000 | - |
| ||
Cash and cash equivalents | 526,054 | 238,592 | 185,458 |
| ||
------------------ | ------------------ | ------------------ |
| |||
526,054 | 676,392 | 203,458 |
| |||
CURRENT LIABILITIES |
| |||||
Trade and other payables | (102,582) | (72,570) | (59,737) |
| ||
----------------- | ----------------- | ------------------ |
| |||
NET CURRENT ASSETS | 423,472 | 603,822 | 143,721 |
| ||
---------------- | ---------------- | ------------------ |
| |||
NET ASSETS | 5,139,788 | 4,507,367 | 4,633,399 |
| ||
=========== | =========== | =========== |
| |||
| ||||||
EQUITY ATTRIBUTABLE TO EQUITY |
| |||||
HOLDERS OF THE COMPANY |
| |||||
Share capital | 3,108,589 | 2,363,588 | 2,483,589 |
| ||
Share premium account | 5,099,544 | 4,871,074 | 5,099,544 |
| ||
Reconstruction reserve | (586,100) | (586,100) | (586,100) |
| ||
Share-based payment reserve | 8,966 | - | 3,478 |
| ||
Retained earnings | (2,491,211) | (2,141,195) | (2,367,112) |
| ||
---------------- | ---------------- | ---------------- |
| |||
TOTAL EQUITY | 5,139,788 | 4,507,367 | 4,633,399 |
| ||
=========== | =========== | =========== |
| |||
Net assets per share (pence) - basic | 5 | 1.65p | 1.91p | 1.87p |
======== | ======== | ======== |
UNAUDITED CONSOLIDATED CASH FLOW STATEMENT
Six months ended 30 June 2014
Six months | Six months | Year ended | ||
to 30/06/13 | to 30/06/13 | 31/12/13 | ||
| Unaudited | Unaudited | Audited | |
£ | £ | £ | ||
Net cash outflow from operating activities | 3 |
(35,264) |
(149,406) | (363,940) |
------------------------------------------- | ------------------------------------------- | --------------------------------------------------- | ||
Cash flows from investing activities | ||||
Purchase of intangible fixed assets | (226,638) | (1,098,710) | (1,684,843) | |
Proceeds of disposal of financial assets at fair value | 15,914 | - | 397,884 | |
------------------------------------------- | ------------------------------------------- | --------------------------------------------------- | ||
(210,724) | (1,098,710) | (1,286,849) | ||
Cash flows from financing activities | ||||
Net proceeds from issue of share capital | 585,640 | 1,135,232 | 1,483,703 | |
Finance income | 944 | 1,858 | 2,926 | |
------------------------------------------- | ------------------------------------------- | --------------------------------------------------- | ||
586,584 | 1,137,090 | 1,486.629 | ||
Net increase/(decrease) in cash and cash equivalents | 340,596 | (111,026) | (164,160) | |
Cash and cash equivalents at beginning of period | 185,458 | 349,618 | 349,618 | |
------------------------------------------- | ------------------------------------------- | --------------------------------------------------- | ||
Cash and cash equivalents at end of period | 526,054 | 238,592 | 185,458 | |
=========================================== | =========================================== | =================================================== | ||
|
UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Six months ended 30 June 2014
Share capital | Share premium | Reconstruction reserve | Retained earnings | Share-based payment reserve | Total | |
£ | £ | £ | £ | £ | £ | |
At 1 January 2013 | 1,946,922 | 4,152,508 | (586,100) | (1,444,037) | - | 4,069,293 |
Loss and total comprehensive income for six months ended 30 June 2013 | - | - | - | (697,158) | (697,158) | |
Issue of shares, net of share issue costs | 416,666 | 718,566 | - | - |
- | 1,135,232 |
________ | ________ | ________ | ________ | ________ | ________ | |
At 30 June 2013 | 2,363,588 | 4,871,074 | (586,100) | (2,141,195) | - | 4,507,367 |
Loss and total comprehensive income for six months ended 31 December 2013 |
- |
- |
- |
(225,917) |
- |
(225,917) |
Share-based payment expense |
- |
- |
- |
- |
3,478 |
3,478 |
Issue of shares, net of share issue costs |
120,001 |
228,470 |
- |
- |
- |
348,471 |
________ | ________ | ________ | ________ | ________ | ________ | |
At 31 December 2013 | 2,483,589 | 5,099,544 | (586,100) | (2,367,112) | 3,478 | 4,633,399 |
Loss and total comprehensive income for six months ended 30 June 2014 | - | - | - | (84,739) |
- | (84,739) |
Share-based payment expense |
- |
- |
- |
- |
5,488 | 5,488 |
Issue of shares, net of share issue costs | 625,000 | - | (39,360) |
- | 585,640 | |
________ | ________ | ________ | ________ | _______ | ________ | |
At 30 June 2014 | 3,108,589 | 5,099,544 | (586,100) | (2,491,211) | 8,966 | 5,139,788 |
======= | ======== | ======== | ======= | ======= | ======== |
Notes to the interim consolidated financial information
Six months ended 30 June 2014
1. GENERAL
The interim financial information for the six month period ended 30 June 2014 are unaudited and were approved by the Directors of the Company on XX September 2014. 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 2013 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 2013 annual financial statements and are expected to be used for the Company's 2014 annual financial statements.
3. CASH FLOWS FROM OPERATING ACTIVITIES
Six months | Six months | Year ended | |
to 30/06/14 | to 30/06/13 | 31/12/13 | |
Unaudited | Unaudited | Audited | |
£ | £ | £ | |
Loss before taxation | (84,739) | (697,158) | (923,075) |
Adjustments for: | |||
Losses on financial assets at fair value | 2,086 | 552,200 | 574,006 |
Finance income | (944) | (1,858) | (2,926) |
Share-based payment expense | 5,488 | - | 3,478 |
------------------- | ------------------- | -------------------- | |
(78,109) | (146,816) | (348,517) | |
Decrease in financial assets at fair value | - | 398,000 | - |
Increase in receivables | - | (398,000) | - |
Increase/(decrease) in payables | 42,845 | (2,590) | (15,423) |
---------------- | ---------------- | ---------------- | |
Net cash used in operating activities | (35,264) | (149,406) | (363,940) |
============= | ============= | =============
|
4. LOSS PER SHARE
Six months | Six months | Year ended | ||
to 30/06/14 | to 30/06/13 | 31/12/13 | ||
| Unaudited | Unaudited | Audited | |
Weighted average number of ordinary shares in issue | 282,198,629 | 230,143,380 | 233,678,522 | |
--------------------------------------- | --------------------------------------- | -------------------------------------------------------------------- | ||
Loss after taxation | £(84,739) | £(697,158) | £(923,075) | |
-------------------------------------- | -------------------------------------- | ----------------------------------------------------------------- | ||
Loss per share | (0.03)p | (0.30)p | (0.39)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 310,858,850 (30 June 2013: 236,358,850; 31 December 2013: 248,358,850).
6. SHARE CAPITAL
Issued and fully paid:
2012 | 2012 | ||
£ | £ | ||
248,358,850 (2013: 194,692,183) Ordinary shares of £0.01 each
|
2,483,589 |
1,946,922 |
Share issues during the period
Number of shares | Share Capital £ | Share premium £ | Total
£ | ||
At 1 January 2014 | 248,358,850 | 2,483,589 | 5,099,544 | 7,583,133 | |
Issued in the year | 62,500,000 | 625,000 | - | 625,000 | |
-------------------------------------- | -------------------------------------- | -------------------------------------- | -------------------------------------- | ||
At 31 December 2013 | 310,858,850 | 2,483,589 | 5,060,1948 | 8,168,773 |
Costs of £39,360 relating to the issue of shares in the period have been deducted from equity in accordance with IAS32.
7. 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.