27 Sep 2012 07:00
27 September 2012
SOVEREIGN MINES OF AFRICA PLC ("the Company")
INTERIM RESULTS FOR THE SIX MONTHS ENDED 4 JULY 2012
CHAIRMAN'S STATEMENT
Dear Shareholder
The Company reported a net loss of £179,098 for the six month period ended 4 July 2012. As permitted by Section 390 (3), Companies Act 2006, the reporting period has been extended from 30 June 2012 to include the issue of 29 million new shares to Praetorian Resources Limited, as further described below. The Directors consider that a period to 4 July 2012 more accurately reflects the company's financial position at the half year and gives clearer information to shareholders.
On 4 July the Company issued 29 million new shares at 6p per share to Praetorian Resources Limited in exchange for £640,000 in cash and 2.2 million shares in Praetorian. As a result Praetorian, which is an AIM listed Fund, focusing on quoted small cap mining and energy stocks, now holds 14.9% of Sovereign Mines Of Africa's share capital.
On 8 August the Company reported the results of its second phase of drilling at Mandiana, consisting of 35 reverse circulation holes totalling 4,950 square metres. These exciting results confirmed the gold mineralisation discovered in last year's drilling programme and full details are shown on the Company's web site www.sovmines.com
In the meantime, further initial exploration work has been carried out at the Dalagna and Marela properties. The samples collected are currently being analysed and it is intended that the results will be announced next month.
The Board is now planning the next stage of drilling at Mandiana and examining various methods of funding with a view to achieving its aim of delineating a large bulk-mineable economic resource.
David B. Pearl FCA
Chairman
26 September 2012
Enquiries:
SOVEREIGN MINES OF AFRICA PLC
David Pearl, F.C.A. - Chairman +353 696 8961
david.pearl@pearlcp.com
SHORE CAPITAL - NOMINATED ADVISER & BROKER
Toby Gibbs/Bidhi Bhoma - Corporate Finance
Jerry Keen - Corporate Broking +44 207 408 4090
Peterhouse Corporate Finance
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SQUARE1 CONSULTING LIMITED
David Bick/Mark Longson +44 207 929 5599
SOVEREIGN MINES OF AFRICA PLC
UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Six months ended 4 July 2012
Notes |
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Six months ended 4/07/12 unaudited £ | Six months ended 30/06/11 unaudited £ | Year ended 31/12/11 audited £ | |||||
Administrative expenses - (operating loss) | (181,288) | (136,090) | (334,016) | ||||
Interest receivable | 2,190 | 2,478 | 6,037 | ||||
------------------ | ------------------ | ------------------ | |||||
Loss on ordinary activities before taxation | (179,098) | (133,612) | (327,979) | ||||
Tax on loss on ordinary activities | - | - | - | ||||
Loss for the financial period | (179,098) | (133,612) | (327,979) | ||||
=========== | =========== | =========== | |||||
Other comprehensive income | - | - | - | ||||
Total comprehensive income for the period | (179,098) | (133,612) | (327,979) | ||||
=========== | =========== | =========== | |||||
Loss for the period and Total comprehensive loss attributable to: | |||||||
Owners of the parent | (179,098) | (133,612) | (327,979) | ||||
Non-controlling interest | - | - | - | ||||
(179,098) | (133,612) | (327,979) | |||||
=========== | =========== | =========== | |||||
Loss per ordinary share (pence) - From continuing operations: basic and diluted | 4 | (0.11)p | (0.09)p | (0.21)p | |||
SOVEREIGN MINES OF AFRICA PLC
UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 4 JULY 2012
As at | As at | As at | ||||
4/07/12 | 30/06/11 | 31/12/11 | ||||
Note | Unaudited | Unaudited | Audited | |||
£ | £ | £ | ||||
FIXED ASSETS |
| |||||
Intangible assets | 2,585,376 | 1,070,170 | 1,763,249 |
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------------------ | ------------------ | ------------------ |
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CURRENT ASSETS |
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Financial assets at fair value through profit and loss | 1,100,000 | - | - |
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Cash and cash equivalents | 891,186 | 1,333,841 | 1,219,947 |
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------------------ | ------------------ | ------------------ |
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1,991,186 | 1,333,841 | 1,219,947 |
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CURRENT LIABILITIES |
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Trade and other payables | (102,683) | (34,157) | (50,219) |
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----------------- | ----------------- | ------------------ |
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NET CURRENT ASSETS | 1,888,503 | 1,299,684 | 1,169,728 |
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---------------- | ---------------- | ------------------ |
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NET ASSETS | 4,473,879 | 2,369,854 | 2,932,977 |
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=========== | =========== | =========== |
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EQUITY ATTRIBUTABLE TO EQUITY |
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HOLDERS OF THE COMPANY |
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Share capital | 1,946,922 | 1,531,922 | 1,656,922 |
| ||
Share premium account | 4,152,508 | 2,090,018 | 2,722,508 |
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Reconstruction reserve | (586,100) | (586,100) | (586,100) |
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Retained earnings | (1,039,451) | (665,986) | (860,353) |
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---------------- | ---------------- | ---------------- |
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TOTAL EQUITY | 4,473,879 | 2,369,854 | 2,932,977 |
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=========== | =========== | =========== |
| |||
Net assets per share (pence) - basic | 5 | 2.30p | 1.55p | 1.77p |
======== | ======== | ======== |
SOVEREIGN MINES OF AFRICA PLC
UNAUDITED CONSOLIDATED CASH FLOW STATEMENT
Six months ended 30 June 2012
Six months | Six months | Year ended | ||
to 4/07/12 | to 30/06/11 | 31/12/11 | ||
| Unaudited | Unaudited | Audited | |
£ | £ | £ | ||
Net cash outflow from operating activities | 3 | (128,824) | (145,527) | (327,391) |
------------------------------------------- | ------------------------------------------- | --------------------------------------------------- | ||
Cash flows from investing activities | ||||
Purchase of intangible fixed assets | (822,127) | (642,258) | (1,335,337) | |
------------------------------------------- | ------------------------------------------- | --------------------------------------------------- | ||
(822,127) | (642,258) | (1,335,337) | ||
Cash flows from financing activities | ||||
Net proceeds from issue of share capital | 620,000 | 1,203,926 | 1,961,416 | |
Interest received | 2,190 | 2,478 | 6,037 | |
------------------------------------------- | ------------------------------------------- | --------------------------------------------------- | ||
622,190 | 1,206,404 | 1,967,453 | ||
Net increase in cash and cash equivalents | (328,761) | 418,619 | 304,725 | |
Cash and cash equivalents at beginning of period | 1,219,947 | 915,222 | 915,222 | |
------------------------------------------- | ------------------------------------------- | --------------------------------------------------- | ||
Cash and cash equivalents at end of period | 891,186 | 1,333,841 | 1,219,947 | |
=========================================== | =========================================== | =================================================== | ||
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SOVEREIGN MINES OF AFRICA PLC
UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY Six months ended 4 July 2012
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SOVEREIGN MINES OF AFRICA PLC
Notes to the consolidated financial information
Six months ended 4 July 2012
1. GENERAL
The interim financial information for the six month period ended 4 July 2012 are unaudited and were approved by the Directors of the Company on 26 September 2012. 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 2011 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 2011 annual financial statements and are expected to be used for the company's 2012 annual financial statements.
3. CASH FLOWS FROM OPERATING ACTIVITIES
Six months | Six months | Year ended | |
to 4/07/12 | to 30/06/11 | 31/12/11 | |
Unaudited | Unaudited | Audited | |
£ | £ | £ | |
Loss before taxation | (179,098) | (133,612) | (327,979) |
Adjustments for: | |||
Interest income | (2,190) | (2,478) | (6,037) |
------------------- | ------------------- | -------------------- | |
(181,288) | (136,090) | (334,016) | |
Increase/(decrease) in payables | 52,464 | (9,437) | 6,625 |
---------------- | ---------------- | ---------------- | |
Net cash from operating activities | (128,824) | (145,527) | (327,391) |
============= | ============= | =============
|
4. LOSS PER SHARE
Six months |
Six months |
Year ended | ||
to 4/07/12 | to 30/06/11 | 31/12/11 | ||
| Unaudited | Unaudited | Audited | |
Weighted average number of ordinary shares in issue | 165,692,183 | 147,685,277 | 155,838,073 | |
------------------------------- | --------------------------------- | ------------------------------------------- | ||
(Loss)/profit after taxation | £(179,098) | £(133,612) | £(327,979) | |
------------------------------- | --------------------------------- | ------------------------------------------- | ||
(Loss)/earnings per share | (0.11)p | (0.09)p | (0.21)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 of 194,692,183 (30 June 2011: 153,192,183: 31 December 2011: 165,692,183).
6. PRAETORIAN RESOURCES PLC
On 4 July 2012, pursuant to an Exchange Agreement with Praetorian Resources Limited (Praetorian), the Company issued 18,333,333 ordinary shares of 1p each at a premium of 5p per share to Praetorian in exchange for 2,200,000 Praetorian ordinary shares of nil par value and pursuant to a Subscription Agreement with Praetorian, the Company issued 10,666,667 ordinary shares of 1p each for cash at a premium of 5p per share.
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.