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15 Dec 2015 07:00
15 December 2015
AURASIAN MINERALS PLC
("AuM" or the "Company")
INTERIM REPORT FOR SIX MONTHS ENDED 30 SEPTEMBER 2015
Chairman's Statement
Attached is the financial information of the Company and Group for the 6 months ended 30th September 2015. During this period we incurred a loss of £281,000 on pursuing our exploration projects in South-East Asia and covering the costs associated with operating as a listed company. During this period, our cash balances declined by £81,000 from £745,000 to £664,000. The difference between this decline and the loss figure was mainly due to the cash injection of £208,000 in respect of the sale of new shares in July.
New venture - Moroccan Minerals
As stated in our announcement on 1 December 2015, Aurasian Minerals plc has signed a heads of terms agreement with Moroccan Minerals Ltd ("MML") to acquire all the outstanding shares of MML. MML has signed an earn in agreement with a local partner to earn up to an 80% interest in a polymetallic project ("Chadine") in Serbia.
South-East Asia
Following a detailed review of the company's exploratory work, both in Myanmar and PDR Laos, we have now concluded that: (i) there are currently obstacles to acquiring the projects we had targeted in these countries; and (ii) the Company needs to focus its limited resources on advancing the Chadine project in the forthcoming period.
We have therefore put our plans in South East Asia on hold for now.
Remaining portfolio in Papua New Guinea
Wamum: The process of obtaining the required government approvals and receiving payment for the sale of our stake in the Wamum project has continued to be slow. We hope and expect to be paid by some time in the first half of 2016.
Morobe: AuM continues to hold a royalty interest in the licence EL 1365 in the Morobe area which is being explored by Niuminco Group Ltd.
Conclusion
AuM has, over the last 6 months, concentrated on locating a significant project with known mineralisation and considerable exploration upside in a country with a favourable fiscal regime. We located a few high quality exploration projects in Laos but they had difficult challenges, including a royalty rate which would have made the project commercially unattractive and impossible to finance. Due to this AuM decided to look elsewhere in the world and several potential projects were identified. On close examination these either lacked sufficient exploration potential or were located in a country with difficult fiscal rules or with an uncertain political and regulatory environment.
MML recently acquired the Chadine project in Serbia which has both a known resource with good upside and a large exploration district in an under-explored area. Serbia has a competitive fiscal regime with a 15% corporation tax rate and a 5% royalty and the regulatory environment in Serbia appears to be quite stable and supportive. MML welcomed Aurasian's ability to contribute cash and management resources to pursue the project. Chadine is polymetallic and would therefore give Aurasian exposure to copper and zinc as well as to precious metals.
We hope that we can pursue Chadine successfully into 2016 and look forward to keeping our shareholders updated on our progress once we have completed the acquisition of MML in early 2016.
Christopher Goss
Chairman
For further information, please contact:
Aurasian Minerals Plc christopher.goss@aurasianminerals.com
Christopher Goss
finnCap Limited +44 (0) 20 7220 0500
Christopher Raggett/Scott Mathieson
Copies of this report are available to view on the Company's website at: www.aurasianminerals.com
AURASIAN MINERAS PLC
INTERIM REPORT FOR SIX MONTHS ENDED 30 SEPTEMBER 2015
Consolidated income statement | Six months ended | Year ended | ||
30th September | 31st March | |||
2015 | 2014 | 2015 | ||
£'000 | £'000 | £'000 | ||
(Unaudited) | (Unaudited) | (Audited) | ||
Revenue | - | - | - | |
Cost of sales | - | - | - | |
Gross profit | - | - | - | |
Operating expenses | (263) | (226) | (442) | |
Share-based payments | - | (2) | (4) | |
Operating loss | (263) | (228) | (446) | |
Finance income | 0 | 20 | 5 | |
Finance costs | (18) | - | 24 | |
Net finance income / (cost) | (18) | 20 | 29 | |
Loss before taxation | (281) | (208) | (417) | |
Income tax expense | - | - | - | |
Loss for the period from continuing operations | (281) | (208) | (417) | |
Loss for the period attributable to equity holders of the parent | (281) | (208) | (417) | |
Basic and diluted (loss) per share (pence) | (0.08)p | (0.06)p | (0.11)p | |
Consolidated statement of comprehensive income | Six months ended | Year ended | ||
30th September | 31st March | |||
2015 | 2014 | 2015 | ||
£'000 | £'000 | £'000 | ||
(Unaudited) | (Unaudited) | (Audited) | ||
Loss for the period | (281) | (208) | (417) | |
Other comprehensive income: | ||||
Exchange differences on translating foreign operations | - | - | 55 | |
Total comprehensive income for the period attributable to equity holders of the parent | (281) | (208) | (362) | |
AURASIAN MINERALS PLC
INTERIM REPORT FOR SIX MONTHS ENDED 30 SEPTEMBER 2015
Consolidated balance sheet | |||
30th September | 31st March | ||
2015 | 2014 | 2015 | |
£'000 | £'000 | £'000 | |
(Unaudited) | (Unaudited) | (Audited) | |
Assets | |||
Exploration and evaluation assets held for sale | 495 | 462 | 505 |
Trade and other receivables | 8 | 22 | 8 |
Cash and cash equivalents | 664 | 908 | 745 |
Total current assets | 1,167 | 1,392 | 1,258 |
Total assets | 1,167 | 1,392 | 1,258 |
Equity attributable to owners of the parent | |||
Share capital | 3,735 | 3,687 | 3,687 |
Share premium | 25,431 | 25,271 | 25,271 |
Share-based payment reserve | 707 | 705 | 707 |
Currency translation reserve | 748 | 693 | 748 |
Own shares held reserve | (50) | (65) | (50) |
Retained losses | (29,431) | (28,926) | (29,150) |
Total equity | 1,140 | 1,365 | 1,213 |
Liabilities | |||
Current liabilities | |||
Trade and other payables | 27 | 27 | 45 |
Total liabilities | 27 | 27 | 45 |
Total equity and liabilities | 1,167 | 1,392 | 1,258 |
AURASIAN MINERALS PLC
INTERIM REPORT FOR SIX MONTHS ENDED 30 SEPTEMBER 2015
Consolidated statements of cash flows | Six months ended | Year ended | |
30th September | 31st March | ||
2014 | 2014 | 2015 | |
£'000 | £'000 | £'000 | |
(Unaudited) | (Unaudited) | (Audited) | |
Cash flows from operating activities | |||
Loss before and after tax | (281) | (208) | (417) |
Share-based payments | - | 2 | 4 |
Interest received | - | (3) | (5) |
Operating loss | (281) | (209) | (418) |
Decrease in trade and other receivables | 10 | 83 | 108 |
(Decrease) / Increase in trade and other payables | (18) | (10) | 9 |
Net cash outflow from operating activities | (289) | (136) | (301) |
Cash flows from investing activities | |||
Interest received | - | 3 | 5 |
Net cash inflow from investing activities | - | 3 | 5 |
Financing activities | |||
Proceeds from issue of equity shares | 208 | - | - |
Net cash inflow from financing activities | 208 | - | - |
Net decrease in cash and cash equivalents |
(81) |
(133) |
(296) |
Cash and cash equivalents at beginning of period | 745 | 1,041 | 1,041 |
Exchange differences | - | - | - |
Cash and cash equivalents at end of period | 664 | 908 | 745 |
AURASIAN MINERALS PLC
INTERIM REPORT FOR SIX MONTHS ENDED 30 SEPTEMBER 2015
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 2014 (Audited) | 3,687 | 25,271 | 703 | (65) | 693 | (28,718) | 1,571 |
Loss for the period | - | - | - | - | - | (208) | (208) |
Total comprehensive income for the period attributable to equity holders of the parent | - | - | - | - | - | - | - |
Share-based payments | - | - | 2 | - | - | - | 2 |
At 30 September 2014 (Unaudited) | 3,687 | 25,271 | 705 | (65) | 693 | (28,926) | 1,365 |
Loss for the period | - | - | - | - | - | (209) | (209) |
Exchange difference on translating foreign operations | - | - | - | - | 55 | - | 55 |
Total comprehensive income for the period attributable to equity holders of the parent | - | - | - | - | 55 | (209) | (154) |
Shares held by EBT | - | - | - | 15 | - | (15) | - |
Share-based payments | - | - | 2 | - | - | - | 2 |
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 |
AURASIAN MINERALS PLC
INTERIM REPORT FOR SIX MONTHS ENDED 30 SEPTEMBER 2015
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 2015 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 2015.
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 2015 and 30th September 2014 is unaudited. The comparative information for the year ended 31st March 2015 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 £281,000 for the period ended 30th September 2015 (30th September 2014: loss of £208,000; 31st March 2015: loss of £417,000) and the weighted average number of 387,544,231 shares in issue (31st March 2015: 368,716,729; 30th September 2015: 416,308,470). There is no difference between the diluted loss per share and the loss per share presented.
Share options and warrants that could have a potentially dilutive effect on earnings per share in the future as at 30th September 2015 were:
· 18,400,000 share options in issue at prices between 1.0 and 1.1 pence per share
· 5,443,780 warrants in issue at prices between 1.2 and 2.5 pence per share
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