26 Sep 2012 07:00
26 September 2012
TRI-STAR RESOURCES PLC
("Tri-Star Resources" or the "Company")
Interim Results for the six month period ended 30 June 2012
Tri-Star Resources (AIM: TSTR), the antimony exploration and development company, is pleased to announce its half year results for the six months ended 30 June 2012.
Highlights
Turkey Göynük antimony deposit
·; Received independent geological assessment, concluding that there is upside to delineate further the mineralization.
·; Environmental permission granted for small scale processing facility, for which an engineering and costing exercise is underway.
UAE Roaster
·; Reviewing funding opportunities to build 20,000 tonne per annum processing facility, which has received preliminary environmental clearance and a site preparation permit.
·; Discussions progressing well for antimony feed stock, from around the world.
Myanmar
·; Subsequent to the period end, signed a technical agreement with RDP Singapore in July 2012, to provide technical expertise on antimony projects in Myanmar, which has one of the largest single country sources of antimony raw material for Chinese facilities.
Commenting on the first half, Emin Eyi, Managing Director commented: "I am pleased with the progress we have made during the first half of the year as we continue to work towards our goal of producing antimony from our own deposit in Turkey and further explore the possibilities for the development of a large scale processing plant in the UAE. Our aim is to become the first integrated supplier of antimony metals and antimony based additives for the global chemicals and new technology industries, and I look forward to providing shareholders with further updates on our progress in due course"
Enquiries
Tri-Star Resources plc Emin Eyi / Brian Spratley | Tel:+44 (0) 1233 629 351 www.tri-starresources.com |
Strand Hanson Limited (Nomad) James Harris / Paul Cocker | Tel: +44 (0)20 7409 3494
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Keith, Bayley, Rogers & Co Limited (Broker) Simon Frost / Brinsley Holman | Tel: +44 (0)20 3100 8300 |
Gable Communication Justine James / John Bick | Tel: +44 (0)20 7193 7469
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Chairman's Statement
Our strategy is to be the first vertically integrated supplier to industrial customers of environmentally compliant and ethically sourced value-added, high quality antimony products from our proposed downstream facilities in the UAE, fed by antimony raw material from our own deposits and from selected third party sources.
In the six months to 30 June 2012, the Company recorded a total comprehensive loss of £1,046,000 (H1 2011 total comprehensive loss of £1,047,000, FY2011 total comprehensive loss of £2,425,000).
As a result of a significant acceleration in exploration in Turkey, evaluation and engineering design related expenditures amounted to £431,000 in the period compared with £243,000 in H1 2011 and £1,570,000 in FY 2011. The board of directors of the Company (the "Board") does not recommend that a dividend is paid at this time.
Capital Raising
Subsequent to the period end in July, the Company announced a capital raising for a total of £1.26 million before expenses. RAK Holdings, a wholly owned subsidiary of Union International Group Limited, and the Company's joint venture partner in the UAE Roaster Project, participated in the Subscription. The fundraising strengthens the Company's cash position as we continue to work towards our long term strategy.
Myanmar Collaboration
Again, subsequent to period end, the Company signed a technical agreement with RDP Singapore with respect to certain antimony projects in Myanmar (Burma), initially providing technical expertise to RDP Singapore performing geological and metallurgical work for these antimony projects.
Myanmar has a very rich mineral record but is relatively underexplored. The geology of the region has the potential to host world class metal deposits. Located between the Cathy (Asian) and Indian plates the large continental sutures and faults such as the Shan Boundary Fault control a large number of mineral formations. Metal deposits in Myanmar include antimony, tin, lead, zinc, copper, precious metals and industrial minerals. There are over 30 known antimony occurrences recorded in the Country. Many of the antimony deposits are associated with tungsten and gold.
Myanmar is estimated to have produced over 14,000 tonnes of antimony in ore form in 2011, sold almost entirely overseas. It is one of the largest single country sources of antimony raw material for Chinese facilities.
Tri-Star Resources is also pursuing other antimony related technical collaboration initiatives with other project developers from around the world.
Outlook
The Company is focusing on bringing the necessary technical, engineering, environmental and funding packages surrounding the development of the downstream processing facility in the UAE and is moving ahead with the engineering and costing exercise of the small scale production facility in Turkey. We are very encouraged by the positive reaction from upstream antimony asset owners from around the world that have approached the Company as a possible alternative to Chinese based processors.
I wish to thank our Board and employees for their support and continued work during the year.
Adrian Collins
Chairman
26 September 2012
About Antimony
Element: Chemical element Sb classified as a minor metal
Scarce: Crustal abundance of 0.2 parts per million for Sb compared with copper (Cu) at 68 parts per million (Sb is 340 times more scarce than copper).
Critical: Most critical metal of importance for the European industry (BGS Survey 2011)
Production: Dominated by China with 90% supply for past decade
Use: Flame retardant synthesizer and additive to plastics, use in batteries and glass and new technologies such as high voltage batteries
Prices: US$ 13,000 per tonne
Deficit Risk: Declining Chinese output from ageing mines and environmental challenges versus growing domestic Chinese demand leading to export quotas as well as rising global demand for flame retardant and new technology uses in the future
TRI-STAR RESOURCES PLC
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE 6 MONTHS ENDED 30 JUNE 2012
Notes | Unaudited Period ended 30 June 2012 | Unaudited Period ended 30 June 2011 | Audited Year ended 31 December 2011 | |||
£'000 | £'000 | £'000 | ||||
Share based payment charge | (139) | (397) | (572) | |||
Exploration and evaluation expenditure | (544) | - | (1,570) | |||
Other administrative expenses | (332) | (632) | (355) | |||
Amortisation of intangibles | (9) | (34) | (44) | |||
Total administrative expenses | (1,024) | (1,063) | (2,541) | |||
Loss from operations | (1,024) | (1,063) | (2,541) | |||
Finance income | 1 | 2 | 4 | |||
Finance cost | - | (1) | (1) | |||
Loss before taxation | (1,023) | (1,062) | (2,538) | |||
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|
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Taxation | - | - | - | |||
Loss after taxation and loss attributable to the equity holders of the Company | (1,023) | (1,062) | (2,538) | |||
Other comprehensive income | ||||||
Exchange differences on translating foreign operations | (23) | 15 | 113 | |||
Total comprehensive expenditure for the period | (1,046) | (1,047) | (2,425) | |||
Loss per share | ||||||
Basic and diluted (pence per share) | 4 | (0.02) | (0.02) | (0.05) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE 6 MONTHS ENDED 30 JUNE 2012
Share capital | Other reserves | Share premium account | Share-based payment reserve | Translation reserve | Retained earnings | Total equity | ||
£'000 | £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | ||
Balance at 1 January 2011 | 2,415 | (6,156) | 5,299 | 241 | (10) | (1,655) | 134 | |
Issue of share capital | 14 | - | 2,694 | - | - | - | 2,708 | |
Share issue costs | - | - | (80) | - | - | - | (80) | |
Share based payments | - | - | - | 397 | - | - | 397 | |
Transactions with owners | 14 | - | 2,614 | 397 | - | - | 3,025 | |
Loss for the period | - | - | - | - | - | (1,062) | (1,062) | |
Other comprehensive income for the period | - | - | - | - | 15 | - | 15 | |
Total comprehensive loss for the period | - | - | - | - | 15 | (1,062) | (1,047) | |
Balance at 30 June 2011 (unaudited) | 2,429 | (6,156) | 7,913 | 638 | 5 | (2,717) | 2,112 | |
Share based payments | - | - | - | 175 | - | - | 175 | |
Transactions with owners | - | - | - | 175 | - | - | 175 | |
Loss for the period | - | - | - | - | - | (1,476) | (1,476) | |
Other comprehensive income for the period | - | - | - | - | 98 | - | 98 | |
Total comprehensive loss for the period | - | - | - | - | 98 | (1,476) | (1,378) | |
Balance at 31 December 2011 | 2,429 | (6,156) | 7,913 | 813 | 103 | (4,193) | 909 | |
Share based payments | - | - | - | 139 | - | - | 139 | |
Transactions with owners | - | - | - | 139 | - | - | 139 | |
Loss for the period | - | - | - | - | - | (1,023) | (1,023) | |
Other comprehensive income for the period | - | - | - | - | (23) | - | (23) | |
Total comprehensive loss for the period | - | - | - | - | (23) | (1,023) | (1,046) | |
Balance at 30 June 2012 (unaudited) | 2,429 | (6,156) | 7,913 | 952 | 80 | (5,216) | 2 |
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2012
Unaudited | Unaudited | Audited | ||||
30 June 2012 | 30 June 2011 | 31 December 2011 | ||||
Assets | Notes | £'000 | £'000 | £'000 | ||
Non-current | ||||||
Intangible assets | 33 | 57 | 41 | |||
Property, plant and equipment | 50 | 72 | 59 | |||
83 | 129 | 100 | ||||
Current | ||||||
Cash and cash equivalents | 102 | 2,120 | 812 | |||
Trade and other receivables | 162 | 98 | 146 | |||
Total current assets | 264 | 2,218 | 958 | |||
Total assets | 347 | 2,347 | 1,058 | |||
Liabilities | ||||||
Current | ||||||
Bank loans | - | 7 | - | |||
Trade and other payables | 345 | 228 | 149 | |||
Total liabilities | 345 | 235 | 149 | |||
Equity | ||||||
Issued share capital | 2,429 | 2,429 | 2,429 | |||
Share premium | 5 | 7,913 | 7,913 | 7,913 | ||
Share based payment reserve | 952 | 638 | 813 | |||
Other reserves | (6,156) | (6,156) | (6,156) | |||
Translation reserve | 80 | 5 | 103 | |||
Retained earnings | (5,216) | (2,717) | (4,193) | |||
Equity attributable | ||||||
to owners of the company | 2 | 2,112 | 909 | |||
Total equity and liabilities | 347 | 2,347 | 1,058 | |||
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE 6 MONTHS ENDED 30 JUNE 2012
Unaudited Period ended | Unaudited Period ended | Audited Year ended | ||||
30 June 2012 | 30 June 2011 | 31 December 2011 | ||||
£'000 | £'000 | £'000 | ||||
Cash flows from operating activities | ||||||
Loss after tax | (1,023) | (1,062) | (2,538) | |||
Amortisation of intangibles | 9 | 34 | 44 | |||
Depreciation | 11 | 14 | 19 | |||
Finance income | (1) | (2) | (4) | |||
Finance cost | - | 1 | 1 | |||
Equity settled share-based payments | 139 | 397 | 572 | |||
Increase in trade and other receivables | (15) | (39) | (87) | |||
Increase/(decrease) in trade and other payables | 196 | (140) | (69) | |||
Net cash outflow from operating activities | (684) | (797) | (2,062) | |||
Cash flows from investing activities | ||||||
Purchase of property, plant and equipment | (1) | (82) | (28) | |||
Purchase of intangibles | - | - | (56) | |||
Sale of property, plant and equipment | - | - | 1 | |||
Finance income | 1 | 2 | 4 | |||
Net cash outflow from investing activities | - | (80) | (79) | |||
Cash flows from financing activities | ||||||
Proceeds from issue of share capital | - | 2,708 | 2,708 | |||
Share issue costs | - | (80) | (80) | |||
Amounts paid to former shareholders | - | - | (150) | |||
Finance cost | - | (1) | (1) | |||
Repayment of loans | - | (8) | (15) | |||
Net cash inflow from financing activities | - | 2,619 | 2,462 | |||
Net (decrease)/increase in cash and cash equivalents | (684) | 1,742 | 321 | |||
Cash and cash equivalents at beginning of period | 812 | 363 | 363 | |||
Exchange differences on cash and cash equivalents | (26) | 15 | 128 | |||
Cash and cash equivalents at end of period | 102 | 2,120 | 812 |
NOTES TO THE INTERIM REPORT
FOR THE PERIOD ENDED 30 JUNE 2012
1. GENERAL INFORMATION
The financial information set out in this interim report does not constitute statutory accounts as defined in Section 434 of the Companies Act 2006. The Group's statutory financial statements for the year ended 31 December 2011 have been delivered to the Registrar of Companies. The auditors report on these financial statements was unqualified and did not contain statements under section 498(2) or section 498(3) of the Companies Act 2006.
2. ACCOUNTING POLICIES
BASIS OF PREPARATION
The Company's shares are listed on the AIM market of the London Stock Exchange and the Company applies the Companies Act 2006 when preparing its annual financial statements.
The annual financial statements will be prepared under International Financial Reporting Standards as adopted by the European Union (IFRS) and the principal accounting policies adopted remain unchanged from those adopted in preparing its financial statements for the year ended 31 December 2011.
The accounting policies have been applied consistently throughout the Group for the purposes of preparation of these condensed consolidated interim financial statements.
3. SEGMENTAL REPORTING
An operating segment is a distinguishable component of the Group that engages in business activities from which it may earn revenues and incur expenses, whose operating results are regularly reviewed by the Group's chief operating decision maker to make decisions about the allocation of resources and assessment of performance and about which discrete financial information is available.
The chief operating decision maker has defined that the Group's only reportable operating segment during the period is mining.
The Group has not generated any revenues from external customers during the period.
In respect of the non-current assets, £18,000 (30 June 2011: £23,000 and 31 December 2011: £21,000) arise in the UK, and £65,000 (30 June 2011: £106,000 and 31 December 201: £79,000) arise in the rest of the world.
4. LOSS PER SHARE
The calculation of the basic loss per share is based on the loss attributable to ordinary shareholders divided by the weighted average number of shares in issue during the period.
Unaudited | Unaudited | Audited | |||
six months ended | six months ended | year ended | |||
30 June 2012 | 30 June 2011 | 31 December 2011 | |||
£'000 | £'000 | £'000 | |||
Loss on ordinary activities after tax (£'000) | (1,023) | (1,062) | (2,538) | ||
Weighted average number of shares for calculating basic loss per share | 5,033,347,275 | 4,889,718,546 | 4,962,123,165 | ||
Basic and diluted loss per share (pence) | (0.02) | (0.02) | (0.05) |
5. SHARE CAPITAL
Unaudited | Unaudited | Audited | |||
30 June 2012 | 30 June 2011 | 31 December 2011 | |||
£'000 | £'000 | £'000 | |||
Allotted, issued and fully paid | |||||
1,363,925,475 deferred shares of 0.1p (30 June and 31 December 2011: 1,363,925,475) | 1,364 | 1,364 | 1,364 | ||
856,547,275 deferred shares of 0.095p (30 June and 31 December 2011: 856,547,275) | 814 | 814 | 814 | ||
5,033,347,275 ordinary shares of 0.005p (30 June 2011 and 31 December 2011: 5,033,347,275) | 251 | 251 | 251 | ||
2,429 | 2,429 | 2,429 |
On 17 July 2012 the Company announced the placement of 223,532,743 new ordinary shares of 0.00005p ("Ordinary Shares") in the Company (the "Subscription Shares") at a subscription price of 0.565p (the "Subscription Price") (the "Subscription"). The Subscription raised £1.26 million, before expenses.
Following this issue there were 5,256,880,017 Ordinary Shares of 0.005 pence each in issue (each of which are voting shares).
The deferred shares have no voting rights and are not eligible for dividends.