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7 Dec 2016 07:00
TETHYAN RESOURCES PLC
("TETH" or the "Company")
INTERIM REPORT FOR SIX MONTHS ENDED 30 SEPTEMBER 2016
Chairman's Statement
During the period under review, we incurred a loss of £577,000 on pursuing our exploration projects in the Balkans region and on covering the costs associated with operating as a listed company; our cash balance declined by £411,000 from £1,024,000 to £613,000. The decline in the cash balance over the period is less than the loss figure, due to the cash injection during the period which is referred to below.
New Ventures and Moroccan Minerals
Following our announcement on 1 December 2015, the Company acquired all the outstanding shares of Moroccan Minerals Ltd (MML) on 25 May 2016. MML had signed an earn in agreement with a local partner to earn up to an 80% interest in a polymetallic project ("Chadine") in Serbia. We withdrew from the Chadine project on 6 October 2016 following a drilling campaign which confirmed the presence of mineralisation, but not of a grade or size that we considered potentially commercial.
We are now managing two other projects, Suva Ruda and Gokcanica, both in South West Serbia. We have an option agreement for Suva Ruda, whereby we can acquire the project through purchase payments and by carrying out an agreed work programme. A summary of the agreement terms was included in our announcement of 27 September 2016. The agreement with Deep Research provides us with an option to purchase 100% of the Suva Ruda Licence or of the shares in Deep Research (at Tethyan's discretion) for a cash payment of €6 million, plus a percentage of the eventual capital cost of building the mine. We can exercise this option at any time during the total duration of the Licence and any future extensions of the Licence (a minimum of 7 years from the date of the Agreement). Tethyan needs to carry out the work programme by drilling 2,000m in 2016 on the 'Rudnitza' porphyry, in which is taking place in November-December. More details on Gokcanica are included in our announcement of 5 July 2016. Tethyan may earn up to an 80% interest in the Gokcanica project by completing exploration worth US$ 500,000 to be followed by a PFS and BFS. We have carried out some reconnaissance sampling at Gokcanica and plan to step up the programme next year.
Financing and Strategic Partner
We raised £163,400 gross in a private placement on 26 April 2016 and, subsequent to the reporting period, we are in the process of raising additional financing in two tranches, the second of which is expected to be completed following the General Meeting of 12 December 2016, which was announced on 22 November and was called to authorise the issue of additional new shares. As part of this latest financing, we have welcomed a strategic partner, Southern Arc which, on completion of the financing, is expected to hold 29.9% of Tethyan's shares in issue. This was announced on 21 November.
Change of Adviser
Subsequent to the reporting period, we were pleased to engage Cairn Financial Advisers as our Nominated Adviser and Broker, which we announced on 17 November. They take over from finnCap, who had provided us with excellent advice and guidance during our years of partnership with them.
Other Developments
Also in the period under review, and as announced on 24 June 2016, the Company's name was changed from Aurasian Minerals plc to Tethyan Resources plc to better reflect its activities. The Company's accounting reference date was changed from 31 March to 31 December to bring it into line with its subsidiaries and the majority of corporate entities operating in the Balkans. It also undertook a capital reorganisation consisting of a consolidation of six ordinary shares into one new ordinary share.
Conclusion
The Company has, over the 6 months reporting period, developed its presence in the Balkans, with two active projects in Serbia. We are also seeking other projects in the region, currently in Serbia and Bulgaria.
We hope to progress the Suva Ruda and Gokcanica projects rapidly in the current reporting period and to make progress in acquiring interests in other projects. We will continue to keep our shareholders updated on our progress
Christopher Goss
Chairman
For further information, please contact:
Tethyan Resources Plc
Christopher Goss chris@tethyan-resources.com
Peter Mullens pjm@tethyan-resources.com
Cairn Financial Advisers LLP
James Caithie +44 (0) 20 7213 0880
Sandy Jamieson
Copies of this report are available to view on the Company's website at: http://tethyan-resources.comTETHYAN RESOURCES PLC
INTERIM REPORT FOR SIX MONTHS ENDED 30 SEPTEMBER 2016
Consolidated income statement | Six months ended | Year ended | ||
30th September | 31st March | |||
2016 | 2015 | 2016 | ||
£'000 | £'000 | £'000 | ||
(Unaudited) | (Unaudited) | (Audited) | ||
Revenue | - | - | - | |
Cost of sales | - | - | - | |
Gross profit | - | - | - | |
Operating expenses | (572) | (263) | (441) | |
Share-based payments | - | - | (29) | |
Operating loss | (572) | (263) | (470) | |
Finance income | 2 | - | 5 | |
Finance costs | - | (18) | - | |
Net finance income / (cost) | 2 | (18) | 5 | |
Loss before taxation | (570) | (281) | (465) | |
Income tax expense | - | - | - | |
Loss for the period from continuing operations | (570) | (281) | (465) | |
Loss for the period attributable to equity holders of the parent | (570) | (281) | (465) | |
Basic and diluted (loss) per share (pence) | (0.07)p | (0.01)p | (0.02)p | |
Consolidated statement of comprehensive income | Six months ended | Year ended | ||
30th September | 31st March | |||
2015 | 2015 | 2016 | ||
£'000 | £'000 | £'000 | ||
(Unaudited) | (Unaudited) | (Audited) | ||
Loss for the period | (570) | (281) | (465) | |
Other comprehensive income: | ||||
Exchange differences on translating foreign operations | (7) | - | - | |
Total comprehensive income for the period attributable to equity holders of the parent | (577) | (281) | (465) | |
TETHYAN RESOURCES PLC
INTERIM REPORT FOR SIX MONTHS ENDED 30 SEPTEMBER 2016
Consolidated balance sheet | |||
30th September | 31st March | ||
2016 | 2015 | 2016 | |
£'000 | £'000 | £'000 | |
(Unaudited) | (Unaudited) | (Audited) | |
Assets | |||
Exploration and evaluation assets held for sale | - | 495 | - |
Tangible assets | 38 | - | - |
Trade and other receivables | 60 | 8 | 6 |
Cash and cash equivalents | 613 | 664 | 1,024 |
Total current assets | 711 | 1,167 | 1,030 |
Total assets | 711 | 1,167 | 1,030 |
Equity attributable to owners of the parent | |||
Share capital | 3,809 | 3,735 | 3,735 |
Share premium | 25,590 | 25,431 | 25,431 |
Share-based payment reserve | 736 | 707 | 736 |
Currency translation reserve | - | 748 | - |
Own shares held reserve | (71) | (50) | (71) |
Retained losses | (29,444) | (29,431) | (28,867) |
Total equity | 620 | 1,140 | 964 |
Liabilities | |||
Current liabilities | |||
Trade and other payables | 91 | 27 | 66 |
Total liabilities | 91 | 27 | 66 |
Total equity and liabilities | 711 | 1,167 | 1,030 |
TETHYAN RESOURCES PLC
INTERIM REPORT FOR SIX MONTHS ENDED 30 SEPTEMBER 2016
Consolidated statements of cash flows | Six months ended | Year ended | |
30th September | 31st March | ||
2016 | 2015 | 2016 | |
£'000 | £'000 | £'000 | |
(Unaudited) | (Unaudited) | (Audited) | |
Cash flows from operating activities | |||
Loss before and after tax | (577) | (281) | (465) |
Share-based payments | - | - | 29 |
Interest received | - | - | (3) |
Operating loss | (577) | (281) | (439) |
(Increase)/Decrease in trade and other receivables | (54) | 10 | (19) |
(Decrease) / Increase in trade and other payables | 25 | (18) | 21 |
Net cash outflow from operating activities | (606) | (289) | (437) |
Cash flows from investing activities | |||
Interest received | - | - | 3 |
Proceeds from disposal of investment Acquisition of fixed assets
| - (38) | - -
| 505 - |
Net cash inflow from investing activities | (38) | - | 508 |
Financing activities | |||
Proceeds from issue of equity shares
| 233
| 208
| 208
|
Net cash inflow from financing activities | 233 | 208 | 208 |
Net increase/(decrease) in cash and cash equivalents |
(411) |
(81) |
279 |
Cash and cash equivalents at beginning of period | 1,024 | 745 | 745 |
Exchange differences | - | - | - |
Cash and cash equivalents at end of period | 613 | 664 | 1,024 |
TETHYAN RESOURCES PLC
INTERIM REPORT FOR SIX MONTHS ENDED 30 SEPTEMBER 2016
Consolidated statements of changes in equity
Share capital | Share premium | Share based payment reserve | Own shares held reserve | Currency translation reserve | Retained losses | Total equity | |
£'000 | £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | |
At 31 March 2015 (Audited) | 3,687 | 25,271 | 707 | (50) | 748 | (29,150) | 1,213 |
Loss for the period | - | - | - | - | - | (281) | (281) |
Total comprehensive income for the period attributable to equity holders of the parent | - | - | - | - | - | (281) | (281) |
Shares issued | 48 | 160 | - | - | - | - | 208 |
At 30 September 2015 (Unaudited) | 3,735 | 25,431 | 707 | (50) | 748 | (29,431) | 1,140 |
Loss for the period | - | - | - | - | - | (184) | (184) |
Total comprehensive income for the period attributable to equity holders of the parent | - | - | - | - | - | (184) | (184) |
Transfer from currency revaluation reserve Shares held by EBT |
- - |
- - |
- - |
- (21) |
(748) - |
748 - |
- (21) |
Share-based payments | - | - | 29 | - | - | - | 29 |
At 31 March 2016 (Audited) | 3,735 | 25,431 | 736 | (71) | - | (28,867) | 964 |
Loss for the period | - | - | - | - | - | (577) | (577) |
Total comprehensive income for the period attributable to equity holders of the parent | - | - | - | - | - | (577) | (577) |
Shares issued | 74 | 159 | - | - | - | - | 233 |
At 30 September 2016 (Unaudited) | 3,809 | 25,590 | 736 | (71) | - | (29,444) | 620 |
TETHYAN RESOURCES PLC
INTERIM REPORT FOR SIX MONTHS ENDED 30 SEPTEMBER 2016
Notes to the interim financial information
1. No dividend is proposed in respect of the period.
2. The results for the period ended 30th September 2016 are derived from continuing activities.
3. Basis of preparation
This interim financial information has been prepared in accordance with International Financial Reporting Standards ("IFRS") as adopted by the European Union with the exception of IAS 34 Interim Financial Reporting, and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS. The accounting policies, methods of computation and presentation used in the preparation of the interim financial information are the same as those used in the Group's audited financial statements for the year ended 31st March 2016.
The financial information in this statement does not constitute full statutory accounts within the meaning of Section 434 of the Companies Act 2006. The financial information for the six months ended 30th September 2016 and 30th September 2015 is unaudited. The comparative information for the year ended 31st March 2016 was derived from the Group's audited financial statements as filed with the Registrar of Companies. It does not constitute the financial statements for that year. The auditors reported on those financial statements; their report was unqualified, did not contain a statement under section 498(2) or 498 (3) of the Companies Act 2006, and did not include reference to any matters to which the auditor drew attention by way of emphasis.
4. Loss per share
The calculation of loss per share is based on a loss of £577,000 for the period ended 30th September 2016 (30th September 2015: loss of £281,000; 31st March 2016: loss of £465,000) and, following the share reorganisation and issuing of shares in the period, the weighted average number of 83,379, 972 shares in issue (31st March 2016: 67,379,970; 30th September 2015: 65,006,998). There is no difference between the diluted loss per share and the loss per share presented.
Share options that could have a potentially dilutive effect on earnings per share in the future as at 30th September 2016 were:
· 18,400,000 share options in issue at prices between 1.0 and 1.1 pence per share
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