30 Sep 2014 17:45
30 September 2014
Touchstone Gold Limited
("Touchstone" or "the Company")
Interim Results for the Six Months ended 30 June 2014
London, 30 September 2014 - The board announces its unaudited interim results for the six-month period ended 30 June 2014.
Highlights
· New major shareholders, Inversiones Y Asesorias El Cardonal SA (IAEC) and Arrigoni Investments Inc. acquired 12% and 19.99% interests respectively in the Company in May.
· US$1.85 million raised (after costs) ahead of the implementation of the company's investing strategy.
· New strategic focus on capturing significant opportunities, specifically in the technology sector.
· Company is actively reviewing a number of significant possible investment opportunities.
Commentary
The Company has undergone significant transformation during the period under review, successfully raising US$1.85 million in 2014 to settle certain historic liabilities connected with the Company's discontinued operations in Colombia and to fund the implementation of a new investment strategy.
Following the adoption of a new investing strategy in June, the Company has a strategic focus on new investment opportunities, specifically in the technology sector.
During the period, the previous board of directors stepped down and a new board was appointed. Franz Forrester and Shahed Mahmood were appointed executive directors and Charles Goodfellow joined the board as non-executive director.
The new board is delighted to be involved in what we believe to be a very exciting time for the Company as we look to capture some of the significant opportunities that exist in our initial area of focus. Our initial focus has been on the technology sector and we are currently reviewing a number of significant possible investment opportunities. We are extremely excited to have the support and leverage of our shareholders, and we look forward to updating the market on our progress in due course.
For further information please contact:
Touchstone Gold Limited Franz Forrester |
| Tel: +44 203 301 9337 |
finnCap Ltd Matthew Robinson / Simon Hicks
|
| Tel: +44 20 7220 0500 |
Peterhouse Corporate Finance Limited | Tel: +44 20 7469 0936 | |
Heena Kirani |
TOUCHSTONE GOLD LIMITED
STATEMENT OF PROFIT AND LOSS AND OTHER COMPREHENSIVE INCOME
|
TOUCHSTONE GOLD LIMITED
STATEMENT OF FINANCIAL POSITION
Unaudited 30 June 2014 | Unaudited 30 June 2013 | ||||
Assets | Notes | US$'000 | US$'000 | ||
Non-current | |||||
Other investments | 258 | - | |||
- | - | ||||
Current Assets | |||||
Cash and cash equivalents | 865 | 12 | |||
Deposits and prepayments | 222 | 160 | |||
Accounts receivable | 310 | 35 | |||
Total current assets | 1,397 | 207 | |||
Total assets | 1,655 | 207 | |||
Liabilities | |||||
Current | |||||
Trade accounts payables | 433 | 499 | |||
Taxes payable | 16 | 19 | |||
Accrued and other liabilities | 132 | 113 | |||
581 | 631 | ||||
Non-current | |||||
Convertible loan notes | 930 | - | |||
Total Liabilities | 1,511 | 631 | |||
Equity | |||||
Issued share capital | 34,777 | 33,858 | |||
Warrant reserve | 213 | 213 | |||
Stock option reserve | 5,258 | 5,258 | |||
Deferred units reserve | 24 | - | |||
Retained earnings | (40,128) | (39,753) | |||
Equity attributable | |||||
to owners of the company | 144 | (424) | |||
Total equity and liabilities | 1,655 | 207 | |||
TOUCHSTONE GOLD LIMITED
STATEMENT OF CASH FLOWS
Unaudited Period ended | Unaudited Period ended | ||||
30 June 2014 | 30 June 2013 | ||||
US$'000 | US$'000 | ||||
Cash flow from operating activities | |||||
Net loss for the period | (375) | (16,405) | |||
Non-cash items | |||||
Impairment of mineral interests | - | 13,633 | |||
Share-based payment expense | - | 331 | |||
Depreciation | - | 56 | |||
Loss /(gain) on foreign exchange | (1) | 115 | |||
Change in fair value of warrants | - | (547) | |||
Adjustment to reconcile net income (loss) to net cash used in operating activities |
| ||||
Changes in non-cash operating assets and liabilities | |||||
Accounts receivable | (250) | (64) | |||
Prepaid expenses and other current assets | (62) | (1) | |||
Trade accounts payable and taxes payable | (69) | (94) | |||
Accrued liabilities | 19 | (158) | |||
Net Cash Used in operating activities | 738 | (3,134) | |||
Cash-flow from investing activities | |||||
Purchase of other investments | (258) | - | |||
Net cash inflow/(outflow) from investing activities | (258) | - | |||
Cash-flow from financing activities | |||||
Issue of equity, net of costs | 919 | - | |||
Issue of convertible loan notes | 930 | - | |||
Net cash inflow from financing activities | 1,849 | -- - ----------- | |||
Effect of exchange rate changes on cash not held in US dollars | - | (130) | |||
Cash and cash equivalents at beginning of period | 12 | 4,088 | |||
Cash and cash equivalents at end of period | 865 | 824 | |||
Net cash inflow/(outflow) from investing activities | 853 | (3,264) | |||
TOUCHSTONE GOLD LIMITED
1 general information
The information for the period ended 30 June 2014 does not constitute statutory accounts.
Basis of preparation
The Board has resolved that the Group will follow International Financial Reporting Standards (IFRS).
The accounting policies have been applied consistently throughout the Group for the purposes of preparation of these condensed consolidated interim financial statements.
The principal accounting policies of the Group remain unchanged from those set out in the Group's 2013 financial statements. All amounts disclosed are in United States dollars unless otherwise stated.
Critical judgments and key sources of estimation uncertainty
The key sources of estimation uncertainty the Directors have made in preparing this interim report are as follows:
§ the fair value of the available for sale financial assets; and
The Directors consider that the critical judgments in applying the accounting policies, as detailed above, in preparing this interim report are as follows:
§ the categorisation of certain financial assets as available for sale.
2. Events after the reporting date
There were no material events after the reporting date, which necessitate revision or adjustment of the figures in these interim results.