27 May 2016 07:30
27 May 2016
W Resources Plc
Final Results for the Year Ended 31 December 2015
W Resources Plc (AIM:WRES), the tungsten, copper and gold exploration and development company with assets in Spain and Portugal, announces its audited financial results for the year ended 31 December 2015.
In 2015, W Resources Plc (the "Company" or "W") made encouraging progress in the development of its flagship tungsten mine at La Parrilla in Spain and Régua in Portugal.
Highlights
· La Parrilla Mine: a 2,900 metre ("m") drilling programme led to a new Joint Ore Reserves Committee ("JORC") compliant mineral resource estimate indicating an increase of 16% in contained tungsten tri-oxide ("WO3")
· W exercised the option to fully acquire La Parrilla and made all option payments and has full title to La Parrilla Mining Concession, as 100% titleholder and owner
· Régua: extension drilling delivered significant high-grade results which were incorporated into an updated JORC mineral resource estimate indicating a significant 76% increase in the indicated resource tonnage
· Completed a successful 1,058 m exploration drilling campaign at CAA / Portalegre, and signed an agreement which increased the project exploration licence by 101.7 km² to 289.75 m² incorporating the highly prospective São Martinho gold project
· Trench sampling at Tarouca showed high-grade tungsten results with 15 out of 126 samples exceeding 0.5% WO3, including 0.8m at 11.4% WO3 (TTR063)
· Funding: raised £3.8 million through placings during 2015
· The US$800,000 convertible note facility with Bergen, which was drawn in October 2014, was fully repaid in April 2015 and the facility terminated
Post year-end
· £850,000 has been raised since the date of the balance sheet
Chairman of W, Michael Masterman commented: "2015 has been a productive year for W, with advances made in Spain and Portugal. I am delighted with the progress made to date and achieving major milestones with the resource upgrades on both projects significantly increasing the prospectivity of these flagship projects. The La Parrilla mine plan is progressing well, and we anticipate to finalise this in mid-2016, and in parallel, we are continuing our discussions with regard to financing the mine at asset level and are encouraged by the response to date. These factors, combined with the Full Mine approval, see the FTM construction on-track ahead of the ramp-up to full production in 2017.
At Régua, metallurgical results to date have been encouraging and this, combined with process flowsheet updates will enable us to start work on the definition development study."
"With the momentum achieved in 2015 we look forward to prospering with the development work as we head towards the ramp-up of production at La Parrilla in early 2017 following construction of the project this year."
Financial Statements for the Year Ended 31 December 2015
A full copy of the W Resources Consolidated Financial Statements for the year ended 31 December 2015 is available on the Company's website at www.wresources.co.uk and an extract of the Consolidated Financial Statements for the year ended 31 December 2015 is presented below.
Enquiries:
W Resources Plc Michael Masterman T: +44 (0) 20 7193 7463 www.wresources.co.uk | Grant Thornton UK LLP Colin Aaronson / Jen Clarke / Harrison Clarke T: +44 (0) 20 7383 5100 |
SI Capital - Joint Broker Andy Thacker / Nick Emerson T: +44 (0) 1483 413500 www.sicapital.co.uk |
Gable Communications Justine James T: +44 (0) 20 7193 7463 M: +44 (0) 7525 324431 |
Northland Capital Partners - Joint Broker John Howes / Abigail Wayne (Corporate Broking) T: +44 (0) 20 03861 6625 www.northlandcp.co.uk |
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About W
In 2012, W Resources Plc (AIM:WRES) made the successful transition into a tungsten production exploration and development company with projects in Spain and Portugal, following two acquisitions. Projects now include La Parrilla, a tungsten project in Spain and Régua and Tarouca Tungsten projects and the CAA / Portalegre copper-gold project in Portugal.
The Company's deposits and tungsten mine developments offer a low cost, high margin resource development opportunity due to a strong market following for Tungsten, increased trading and a forecast shortage of supply. The price of tungsten has more than doubled in past three years and is in the top 5 critical metals list.
The Board is focused to explore further opportunities in the region with a view to building a mid-tier minor metal producer.
The Company was incorporated in England and Wales in 2004.
W RESOURCES PLC
CHAIRMANS STATEMENT
In 2015, W Resources Plc (the "Company" or "W") made encouraging progress at its flagship tungsten development projects: La Parrilla in Spain and Régua in Portugal.
At La Parrilla a 2,900 metre ("m") drilling programme led to a new Joint Ore Reserves Committee ("JORC") compliant mineral resource estimate indicating an increase of 16% in contained tungsten tri-oxide ("WO3"). Critical path geological, metallurgical, approval, and project design culminated in the delivery of a three-stage low-incremental cost development plan which will deliver 5,000 tonnes per annum ("tpa") of tungsten and 440 tonnes of tin (Sn) in a low capital and operating cost venture once at full production levels, targeted for 2018.
In parallel at Régua, extension drilling delivered significant high-grade results, which exceeded expectations, in particular in the northeast and northwest and in the target open pit mining area in the centre of the orebody. These positive results were incorporated into an updated JORC mineral resource estimate indicating a significant 76% increase in the indicated resource tonnage.
In addition to the progress at La Parrilla and Régua, W completed a successful exploration drilling campaign at CAA / Portalegre, drilling five holes with significant intersections and signed an agreement which increased the project exploration licence by 101.7 km² to 289.75 m² incorporating the highly prospective São Martinho gold project at minimal cost.
La Parrilla, Spain
The La Parrilla definition study, which was completed in June 2015, outlined a low capital and operating cost project, targeting annual production of 5,000 tonnes of tungsten (WO3) and 440 tonnes of tin (Sn) concentrate.
In September 2015, W completed a drilling programme comprising 1,302 m diamond core and 1,594 m of grade control reverse circulation drilling in the Fast Track Mine ("FTM") area. This returned strong assay results which were located near surface including: 40 m at 0.32% WO3 from surface in Hole IRC1-40 and 56.20 m at 0.21% WO3 from 47.5 m in Hole IP-21. The drilling programme at La Parrilla West also delivered solid results with the new Hole IP-25 reporting 28.40 m at 0.25% WO3 from 43.2 m.
An updated JORC mineral resource estimate was completed in February 2016, confirming La Parrilla to be one of the largest tungsten deposits in the Western World:
· The total resources estimate for La Parrilla increased to 51 million tonnes ('mt') at 0.096% WO3 and 0.108% Sn. This represents a substantial increase of 16% in contained WO3 and a 7% increase in average WO3 grade
· A large increase of 29% contained Sn and a 19% increase in Sn grade
· Importantly, the classification of the resource also increased, with an indicated resource of 36 mt which equates to 70% of the total resource estimate, up from zero in the previous 2013 estimate
Metallurgical testing, plant design and expansion planning work advanced in 2015, which determined that the La Parrilla plant will be constructed in three stages allowing for low-cost incremental expansion to supply the anticipated steady growth in market demand.
Initial production at the FTM will target 1,300 tpa of 66% WO3 concentrate and 110 tonnes of 52% Sn concentrate, at an estimated cost of US$16 million. The FTM is on-track for first production in late 2016.
Phase two will see the FTM being scaled up in 2017 / 2018 to 2,600 tpa at the low incremental cost of US$6.0 million. In Phase three, at an estimated cost of US$30 million, the final Full Mine ("FM") will incorporate ore sorters and duplicate the processing plant expanding the capacity to 5,000 tpa, transforming W into a large profitable mining company delivering approximately US$90 million per annum revenue (based on an APT price of $320), with low operating costs of just US$121 / mtu.
Following the receipt of the environmental approval for La Parrilla in July 2015, W received the Mines Department authorisation (the main approval required to fully develop the FTM towards production) in November 2015. This was received just eight months after submission of the formal environmental and development documentation, and is particularly encouraging as it gives W strong confidence in support from the Spanish Regional Government for the La Parrilla project. Full Mine development and environmental approvals are advancing, whilst the Company makes good progress on this exciting asset.
Régua, Portugal
W continued development at Régua during 2015 and in August the Company completed a 2,067 m diamond drilling and bulk sampling campaign to appraise lateral and depth extensions to existing mineralisation. The drilling programme further defined high-grade extensions to the northeast (Hole RGD023 - 6.30 m at 0.47% from 122.44 m plus 10.48 m at 0.61% from 132.72 m) and in addition, a step-out hole identified a significant new extension of the orebody to northwest (Hole RGD026A - 6.45 m at 0.35% WO3 from 206.55 m). Five short holes drilled in the centre of the orebody highlighted the potential for an initial open pit mining area with multiple levels of higher-grade tungsten mineralisation at surface or close to surface with limited cover (Hole RGD028 - 4.35 m at 0.83% WO3 from 16.50 m).
The Régua 4 tonne bulk surface sample returned assays of 0.33% to 1.0% WO3 and the drilling results highlighted 6 zones (compared to the expected 3) of tungsten bearing skarn, including 10 m at 0.6% WO3.
These positive results were incorporated into an updated JORC compliant mineral resource estimate, issued in October 2015, with the total resource tonnage increasing by 22% to 5.46 mt at a grade of 0.28% WO3, up from 4.46 mt, and notably the indicated resource tonnage increasing by 76% to 3.76 mt at 0.304% WO3 (2012: 2.14 mt @ 0.367% WO3).
Mine development planning is now advanced and on-track for completion during mid-2016. Metallurgical and plant design work for an initial shallow open-pit mine design, as well as a second phase for a larger scale high-grade underground operation are also in progress.
The Régua deposit remains open at depth and on all sides, with significant potential resource growth to the northeast including a 10 m thick tungsten intersection.
Tarouca Exploration, Portugal
In 2015, trench sampling at the Tarouca project showed high-grade tungsten results with 15 out of 126 samples exceeding 0.5% WO3, including 0.8 m at 11.4% WO3 (TTR063). Together with the 15 holes drilled in 2014, this confirms an outstanding exploration target in the north eastern area of the licence. W has consolidated the data and will review timing for further targeted drilling later during 2016.
Tarouca is located 133 km east of Porto and W has an exploration licence on this project.
Copper-Gold Exploration: CAA / Portalegre, Portugal
In May 2015, W completed a 1,058 m scout diamond drilling programme at the CAA / Portalegre gold and base metal exploration licence in Portugal, which delivered encouraging results. Hole CAAD-05 intersected 16 m of gold (Au) at 1.37 grams per tonne ("g/t") between 124 m and 140 m, which is the most significant result in the CAA / Portalegre programme.
The results delineated the strong potential for extensions at CAA / Portalegre and with the project now at an advanced stage of exploration, the Company's priority is now to translate the results into a discovery in the next phase of gold exploration.
W signed an agreement with the Portuguese Department of Energy and Geology (DGEG), in October 2015 to increase its CAA / Portalegre exploration licence by 101.7 km². As a result, the project now includes the highly prospective São Martinho gold project with a non-compliant resource estimate of 328,621oz at an average grade of 1.37 g/t Au. The expanded licence agreement has resulted in the CAA / Portalegre project now covering 289.75 km².
The Board considers it logical and a strategic advantage to farm-out the gold and base metals project to the right partner, and evaluating this process will commence during the course of 2016.
CAA / Portalegre is located 200 km east of Lisbon, comprising two gold exploration licences.
Finance
During 2015, W completed capital placements totalling £3,775,000. The funds raised were predominantly used to progress development at the Régua Project and the La Parrilla FTM (including the completion of the environmental approval). In addition, the Company completed a drilling campaign at its prospective CAA / Portalegre gold exploration project.
The Company recorded an after tax loss £606,000 in 2015, compared to a loss of £641,000 in 2014; due largely to lower finance costs and includes a full year of plant depreciation.
W Resources has exercised the option to fully acquire La Parrilla and made all option payments. W Resources, as 100% titleholder and owner, now has full title to La Parrilla Mining Concession.
The US$800,000 convertible note facility with Bergen, which was drawn in October 2014, was fully repaid in April 2015 and the facility terminated.
Outlook
2015 has been a productive year for W, with advances made in Spain and Portugal. I am delighted with the progress made to date and achieving major milestones with the resource upgrades on both projects significantly increasing the prospectivity at both of these flagship projects. The La Parrilla mine plan is progressing well, and we anticipate to finalise this in mid-2016, and in parallel, we are continuing our discussions with regard to financing the mine at asset level and are encouraged by the response to date. These factors, combined with the Full Mine approval, see the FTM on-track for first production in late Q4 2016, and ramp-up in early 2017.
At Régua, metallurgical results to date have been encouraging and this, combined with process flowsheet updates will enable us to start work on the definition development study.
On behalf of the board I would like to thank our hardworking teams in Spain and Portugal and our valued shareholders for their continued support during 2015 and we look forward to prospering with the development work as we head towards production by the end of 2016.
Mr M Masterman
Chairman
W Resources Plc
27 May 2016
"Some of the technical information contained in the W Resources Plc Chairman's Statement was prepared and first disclosed under the JORC Code 2004. It has not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported."
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2015
2015 2014
Notes £'000 £'000
CONTINUING OPERATIONS
Revenue 2 82 964
Cost of sales (100) (1,098)
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GROSS LOSS (18) (134)
Depreciation and amortisation (184) (102)
Administrative expenses (386) (251)
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OPERATING LOSS (588) (487)
Finance costs 4 (18) (155)
Finance income 4 - 1
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LOSS BEFORE INCOME TAX | 5 | (606) | (641) | ||||
Income tax 6 - -
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LOSS FOR THE YEAR (606) (641)
OTHER COMPREHENSIVE INCOME
Item that will not be reclassified to profit or loss:
Translation reserve (439) (754)
Income tax relating to item of other comprehensive income | - | - | |||||
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OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX | (439) | (754) | |||||
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TOTAL COMPREHENSIVE INCOME FOR THE YEAR | (1,045) | (1,395) | |||||
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Loss attributable to:
Owners of the parent (606) (641)
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Total comprehensive income attributable to:
Owners of the parent (1,045) (1,395)
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Loss per share expressed
in pence per share: 8
Basic -0.02 -0.03
Diluted -0.02 -0.03
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CONSOLIDATED STATEMENT OF FINANCIAL POSITION
31 DECEMBER 2015
2015 2014
Notes £'000 £'000
ASSETS
NON-CURRENT ASSETS
Intangible assets 9 8,250 6,942
Property, plant and equipment 10 1,809 2,037
Investments 11 - -
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10,059 8,979
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CURRENT ASSETS
Inventories 12 - 52
Trade and other receivables 13 574 848
Cash and cash equivalents 14 864 283
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1,438 1,183
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TOTAL ASSETS 11,497 10,162
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EQUITY
SHAREHOLDERS' EQUITY
Called up share capital 15 3,694 2,420
Share premium 16 20,316 17,913
Share Warrant Reserve 16 77 77
Merger Reserve 16 909 909
Translation Reserve 16 (1,292) (853)
Retained earnings 16 (13,337) (12,731)
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TOTAL EQUITY 10,367 7,735
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LIABILITIES
CURRENT LIABILITIES
Trade and other payables 17 986 1,914
Financial liabilities - borrowings
Interest bearing loans and borrowings | 18 | 144 | 513 | ||||
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1,130 2,427
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TOTAL LIABILITIES 1,130 2,427
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TOTAL EQUITY AND LIABILITIES 11,497 10,162
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The financial statements were approved by the Board of Directors on 27 May 2016 and were signed on its behalf by:
M G Masterman
Chairman
COMPANY STATEMENT OF FINANCIAL POSITION
31 DECEMBER 2015
2015 2014
Notes £'000 £'000
ASSETS
NON-CURRENT ASSETS
Intangible assets 9 - -
Property, plant and equipment 10 - -
Investments 11 1,520 1,520
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1,520 1,520
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CURRENT ASSETS
Trade and other receivables 13 10,593 7,774
Cash and cash equivalents 14 145 65
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10,738 7,839
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TOTAL ASSETS 12,258 9,359
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EQUITY
SHAREHOLDERS' EQUITY
Called up share capital 15 3,694 2,420
Share premium 16 20,316 17,913
Share Warrant Reserve 16 77 77
Merger Reserve 16 909 909
Translation Reserve 16 (98) (98)
Retained earnings 16 (12,889) (12,538)
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TOTAL EQUITY 12,009 8,683
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LIABILITIES
CURRENT LIABILITIES
Trade and other payables 17 249 163
Financial liabilities - borrowings
Interest bearing loans and borrowings | 18 | - | 513 | ||||
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249 676
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TOTAL LIABILITIES 249 676
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TOTAL EQUITY AND LIABILITIES 12,258 9,359
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The financial statements were approved by the Board of Directors on 27 May 2016 and were signed on its behalf by:
M G Masterman
Chairman
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2015
Called up
Share Retained Share
Capital Earnings Premium
£'000 £'000 £'000
Balance at 1 January 2014 2,087 (12,090) 16,075
Changes in equity
Issue of share capital 333 - 1,838
Total comprehensive income - (641) -
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Balance at 31 December 2014 2,420 (12,731) 17,913
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Changes in equity
Issue of share capital 1,274 - 2,403
Total comprehensive income - (606) -
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Balance at 31 December 2015 3,694 (13,337) 20,316
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Share
Warrant Merger Translation Total
Reserve Reserve Reserve Equity
£'000 £'000 £'000 £'000
Balance at 1 January 2014 - 909 (99) 6,882
Changes in equity
Issue of share capital - - - 2,171
Total comprehensive income - - (754) (1,395)
Warrants granted | 77 |
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| 77 |
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Balance at 31 December 2014 77 909 (853) 7,735
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Changes in equity
Issue of share capital - - - 3,677
Total comprehensive income - - (439) (1,045)
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Balance at 31 December 2015 77 909 (1,292) 10,367
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COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2015
Called up
Share Retained Share
Capital Earnings Premium
£'000 £'000 £'000
Balance at 1 January 2014 2,087 (11,988) 16,075
Changes in equity
Issue of share capital 333 - 1,838
Total comprehensive income - (550) -
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Balance at 31 December 2014 2,420 (12,538) 17,913
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Changes in equity
Issue of share capital 1,274 - 2,403
Total comprehensive income - (351) -
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Balance at 31 December 2015 3,694 (12,889) 20,316
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Share
Warrant Merger Translation Total
Reserve Reserve Reserve Equity
£'000 £'000 £'000 £'000
Balance at 1 January 2014 - 909 (98) 6,985
Changes in equity
Issue of share capital - - - 2,171
Total comprehensive income - - - (550)
Warrants granted | 77 |
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| 77 |
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Balance at 31 December 2014 77 909 (98) 8,683
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Changes in equity
Issue of share capital - - - 3,677
Total comprehensive income - - - (351)
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Balance at 31 December 2015 77 909 (98) 12,009
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CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2015
2015 2014
Notes £'000 £'000
Cash flows from operating activities
Cash absorbed by operations 1 (974) (1,050)
Interest paid (18) -
Finance costs paid - (155)
Tax paid - (14)
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Net cash from operating activities (992) (1,219)
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Cash flows from investing activities
Purchase of intangible fixed assets (1,720) (2,016)
Purchase of tangible fixed assets (15) (745)
Interest received - 1
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Net cash from investing activities (1,735) (2,760)
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Cash flows from financing activities
New loans in year 165 512
Loan repayments in year (533) -
Amount introduced by directors - 156
Share issue 1,274 333
Share Issue Premium 2,501 1,909
Share Issue Costs (99) (71)
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Net cash from financing activities 3,308 2,839
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Increase/(decrease) in cash and cash equivalents | 581 | (1,140) | ||||||
Cash and cash equivalents at beginning of year | 2 | 283 | 1,423 | |||||
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Cash and cash equivalents at end of year | 2 | 864 | 283 | ||||
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COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2015
2015 2014
Notes £'000 £'000
Cash flows from operating activities
Cash absorbed by operations 1 (3,479) (3,990)
Interest paid (18) (5)
Finance costs paid - (155)
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Net cash from operating activities (3,497) (4,150)
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Cash flows from investing activities
Interest received 413 295
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Net cash from investing activities 413 295
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Cash flows from financing activities
New loans in year - 512
Loan repayments in year (512) -
Share issue 1,274 333
Share Premium 2,501 1,909
Share issue costs (99) (71)
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Net cash from financing activities 3,164 2,683
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Increase/(decrease) in cash and cash equivalents | 80 | (1,172) | ||||||
Cash and cash equivalents at beginning of year | 2 | 65 | 1,237 | |||||
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Cash and cash equivalents at end of year | 2 | 145 | 65 | ||||
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NOTES TO THE STATEMENTS OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2015
1. | RECONCILIATION OF LOSS BEFORE INCOME TAX TO CASH GENERATED FROM OPERATIONS |
Group
2015 2014
£'000 £'000
Loss before income tax (606) (641)
Depreciation charges 184 102
Share based payment - 77
Foreign exchange loss 32 (188)
Finance costs 18 155
Finance income - (1)
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(372) (496)
Decrease/(increase) in inventories 52 (52)
Decrease/(increase) in trade and other receivables 274 (249)
Decrease in trade and other payables (928) (253)
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| Cash absorbed by operations | (974) | (1,050) | ||||
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Company
2015 2014
£'000 £'000
Loss before income tax (351) (550)
Share based payments - 77
Increase in inter-group loans (2,785) (3,341)
Finance costs 18 160
Finance income (413) (295)
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(3,531) (3,949)
(Increase)/decrease in trade and other receivables (35) 4
Increase/(decrease) in trade and other payables 87 (45)
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| Cash absorbed by operations | (3,479) | (3,990) | ||||
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2. CASH AND CASH EQUIVALENTS
The amounts disclosed on the Statements of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:
Group Company
Year ended 31 December 2015
31.12.15 1.1.15 31.12.15 1.1.15
£'000 £'000 £'000 £'000
Cash and cash equivalents 864 283 145 65
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Year ended 31 December 2014
31.12.14 1.1.14 31.12.14 1.1.14
£'000 £'000 £'000 £'000
Cash and cash equivalents 283 1,423 65 1,237
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2015
2. SEGMENTAL REPORTING
2014 |
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| Corporate |
| Mineral Exploration |
| Total |
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| £'000 |
| £'000 |
| £'000 |
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By Business Segment:
Loss for the year |
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| (459) | (182) | (641) |
Balance Sheet |
| - Segment Assets |
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| 88 | 10,074 | 10,162 | |||
| - Segment Liabilities |
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| (564) | (1,863) | (2,427) | ||||
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Net Assets |
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| (476) | 8,211 | 7,735 | |||||
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By Geographical Sector: |
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| Iberia |
| UK |
| Total |
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Loss for the year |
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| (182) | (459) | (641) |
Balance Sheet |
| - Segment Assets |
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| - Tangibles |
|
| 2,037 | - | 2,037 | ||||
| - Intangibles |
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| 6,942 | - | 6,942 | ||||
| - Other |
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| 1,095 | 88 | 1,183 | ||||
| - Segment Liabilities |
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| (1,863) | (564) | (2,427) | ||||
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8,211 (476) 7,735
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2015 |
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| Corporate |
| Mineral Exploration |
| Total |
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By Business Segment:
Loss for the year |
|
| (351) | (255) | (606) |
Balance Sheet |
| - Segment Assets |
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| 200 | 11,297 | 11,497 | |||
| - Segment Liabilities |
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| (136) | (994) | (1,130) | ||||
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Net Assets |
|
| 64 | 10,303 | 10,367 | |||||
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By Geographical Sector: |
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| Iberia |
| UK |
| Total |
|
Loss for the year |
|
| (255) | (351) | (606) |
Balance Sheet |
| - Tangible Assets |
|
| 1,809 | - | 1,809 | |||
| - Intangibles |
|
| 8,250 | - | 8,250 | ||||
| - Other |
|
| 1,238 | 200 | 1,438 | ||||
| - Segment Liabilities |
|
| (994) | (136) | (1,130) | ||||
|
|
|
|
|
|
|
| |||
Net Assets/(Liabilities) |
|
| 10,303 | 64 | 10,367 | |||||
|
|
|
|
|
|
|
| |||
4. NET FINANCE COSTS
2015 2014
£'000 £'000
Finance income:
Deposit account interest - 1
|
|
|
Finance costs:
Other interest 18 -
Share based payment charge - 77
Commencement fees - 78
|
|
|
18 155
|
|
|
Net finance costs 18 154
|
|
|
5. LOSS BEFORE INCOME TAX
The loss before income tax is stated after charging/(crediting):
2015 2014
£'000 £'000
Cost of sales 100 1,098
Other operating leases 4 4
Depreciation - owned assets 129 65
Intangible assets amortisation 54 36
Auditors' remuneration 21 19
| Auditors' remuneration for non-audit work | 3 | 2 |
|
|
|
6. INCOME TAX
Analysis of tax expense
No liability to UK corporation tax arose on ordinary activities for the year ended 31 December 2015 nor for the year ended 31 December 2014.
Factors affecting the tax expense
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:
2015 2014
£'000 £'000
| Loss on ordinary activities before income tax | (606) | (641) | |||||
|
|
|
|
| ||||
| Loss on ordinary activities multiplied by the standard rate of corporation tax in the UK of 20% (2014 - 21.500%) | (121) | (138) | |||||
Effects of:
| Share based payment disallowed | - | 17 | ||||
| Benefit of losses brought forward | (3,272) | (3,151) | ||||
| Benefit of losses carried forward | 3,393 | 3,272 | ||||
|
|
|
|
| |||
Tax expense - -
|
|
|
8. LOSS PER SHARE
Basic loss per share is calculated by dividing the losses attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period.
Diluted loss per share is calculated using the weighted average number of shares adjusted to assume the conversion of all dilutive potential ordinary shares.
Reconciliations are set out below.
2015
Weighted
average
number Per-share
Loss of amount
£'000 shares pence
Basic LPS
| Loss attributable to ordinary shareholders | (606) | 3,290,674,856 | -0.02 |
Effect of dilutive securities - - -
|
|
|
|
|
Diluted LPS
Adjusted Loss (606) 3,290,674,856 -0.02
|
|
|
|
|
2014
Weighted
Average
Number Per-share
Loss of Amount
£'000 Shares Pence
Basic LPS
| Loss attributable to ordinary shareholders | (641) | 2,216,948,161 | -0.03 |
Effect of dilutive securities - - -
|
|
|
|
|
Diluted LPS
Adjusted loss (641) 2,216,948,161 -0.03
|
|
|
|
|
9. INTANGIBLE ASSETS
Group
Intangible
Assets
£'000
COST
At 1 January 2015 6,990
Additions 1,720
Exchange differences (361)
|
|
At 31 December 2015 8,349
|
|
AMORTISATION
At 1 January 2015 48
| Amortisation for year | 54 |
Exchange differences (3)
|
|
At 31 December 2015 99
|
|
NET BOOK VALUE
At 31 December 2015 8,250
|
|
9. INTANGIBLE ASSETS - Continued
Group
Intangible
Assets
£'000
COST
At 1 January 2014 5,450
Additions 2,016
Exchange differences (476)
|
|
At 31 December 2014 6,990
|
|
AMORTISATION
At 1 January 2014 13
| Amortisation for year | 36 |
Exchange differences (1)
|
|
At 31 December 2014 48
|
|
NET BOOK VALUE
At 31 December 2014 6,942
|
|
The above represents capitalised testing works and concessions costs acquired.
10. PROPERTY, PLANT AND EQUIPMENT
Group
Fixtures
Plant and and Motor
Machinery Fittings Vehicles Totals
£'000 £'000 £'000 £'000
COST
At 1 January 2015 2,161 13 6 2,180
Additions 15 - - 15
Exchange differences (122) - - (122)
|
|
|
|
|
|
|
|
At 31 December 2015 2,054 13 6 2,073
|
|
|
|
|
|
|
|
DEPRECIATION
At 1 January 2015 124 13 6 143
| Charge for year | 129 | - | - | 129 |
Exchange differences (8) - - (8)
|
|
|
|
|
|
|
|
At 31 December 2015 245 13 6 264
|
|
|
|
|
|
|
|
NET BOOK VALUE
At 31 December 2015 1,809 - - 1,809
|
|
|
|
|
|
|
|
10. PROPERTY, PLANT AND EQUIPMENT - Continued
Group
Fixtures
Plant and and Motor
Machinery Fittings Vehicles Totals
£'000 £'000 £'000 £'000
COST
At 1 January 2014 1,512 13 6 1,531
Additions 745 - - 745
Exchange differences (96) - - (96)
|
|
|
|
|
|
|
|
At 31 December 2014 2,161 13 6 2,180
|
|
|
|
|
|
|
|
DEPRECIATION
At 1 January 2014 64 13 6 83
| Charge for year | 65 | - | - | 65 |
Exchange differences (5) - - (5)
|
|
|
|
|
|
|
|
At 31 December 2014 124 13 6 143
|
|
|
|
|
|
|
|
NET BOOK VALUE
At 31 December 2014 2,037 - - 2,037
|
|
|
|
|
|
|
|
11. INVESTMENTS
Company
Shares in
Group
Undertakings
£'000
COST
At 1 January 2015
and 31 December 2015 1,520
|
|
NET BOOK VALUE
At 31 December 2015 1,520
|
|
At 31 December 2014 1,520
|
|
Shares in
Group
Undertakings
£'000
COST
At 1 January 2014
and 31 December 2014 1,520
|
|
NET BOOK VALUE
At 31 December 2014 1,520
|
|
11. INVESTMENTS - Continued
Company
The group or the company's investments at the Statement of Financial Position date in the share capital of companies include the following:
Subsidiaries
Iberian Resources Spain SL
Country of incorporation: Spain
Nature of business: Tungsten mining, production, exploration
%
Class of shares: holding
Ordinary 100.00
2015 2014
£'000 £'000
Aggregate capital and reserves (576) (589)
|
|
|
Australian Iron Ore Plc (Group)
Nature of business: Tungsten mining exploration, development
%
Class of shares: holding
Ordinary 100.00
2015 2014
£'000 £'000
Aggregate capital and reserves 293 402
|
|
|
Iberian Resources Portugal, Recursos Minerais, Unipessoal, Lda
Country of incorporation: Portugal
Nature of business: Mineral Exploration
%
Class of shares: holding
Australian Iron Ore Plc owns 100.00
2015 2014
£'000 £'000
Aggregate capital and reserves 181 282
|
|
|
Caspian USA Inc
Country of incorporation: United States of America
Nature of business: Oil Exploration
%
Class of shares: holding
Ordinary 100.00
Associated company
Black Gold of Kentucky Inc
Country of incorporation: United States of America
Nature of business: Oil Exploration
%
Class of shares: holding
Ordinary 50.00
12. INVENTORIES
Group
2015 2014 £'000 £'000
Concentrate for re-sale - 52
|
|
|
|
13. TRADE AND OTHER RECEIVABLES
Group Company
2015 2014 2015 2014
£'000 £'000 £'000 £'000
Current:
Trade debtors - 40 - -
Amounts owed by group undertakings - - 10,538 7,754
Other debtors 488 779 36 7
Prepayments 86 29 19 13
|
|
|
|
|
|
|
574 848 10,593 7,774
|
|
|
|
|
|
|
14. CASH AND CASH EQUIVALENTS
Group Company
2015 2014 2015 2014
£'000 £'000 £'000 £'000
Bank accounts 864 283 145 65
|
|
|
|
|
|
|
15. CALLED UP SHARE CAPITAL
Allotted and issued:
Number: |
| Class: |
| Nominal Value | 2015 | 2014 |
| £'000 | £'000 | ||||
3,693,937,493 |
| Ordinary |
| 0.1p | 3,694 | 2,420 | ||
|
|
|
|
| ||||
1,274,166,660 Ordinary Shares of 0.1p were issued during the year for cash as follows:
- On 26 January 2015, 466,666,664 Ordinary Shares of 0.1p each were issued at a share price of 0.30p raising £1,400,000.
- On 25 March 2015, 187,500,000 Ordinary Shares of 0.1p each were issued at a share price of 0.20p raising £375,000.
- On 2 April 2015, 100,000,000 Ordinary Shares of 0.1p each were issued at a share price of 0.20p raising £200,000.
- On 2 July 2015, 399,999,996 Ordinary Shares of 0.1p each were issued at a share price of 0.30p raising £1,200,000.
- On 10 November 2015, 120,000,000 Ordinary Shares of 0.1p each were issued at a share price of 0.50p raising £600,000.
16. RESERVES
Group
Share
Retained Share Warrant
Earnings Premium Reserve
£'000 £'000 £'000
At 1 January 2015 (12,731) 17,913 77
Deficit for the year (606) - -
Cash share issue - 2,502 -
Share issue costs - (99) -
|
|
|
|
|
|
At 31 December 2015 (13,337) 20,316 77
|
|
|
|
|
|
Group
Merger Translation
Reserve Reserve Totals
£'000 £'000 £'000
At 1 January 2015 909 (853) 5,315
Deficit for the year - - (606)
Cash share issue - - 2,502
Share issue costs - - (99)
Trans to translation reserve - (439) (439)
|
|
|
|
|
|
At 31 December 2015 909 (1,292) 6,673
|
|
|
|
|
|
Company
Share
Retained Share Warrant
Earnings Premium Reserve
£'000 £'000 £'000
At 1 January 2015 (12,538) 17,913 77
Deficit for the year (351) - -
Cash share issue - 2,502 -
Share issue costs - (99) -
|
|
|
|
|
|
At 31 December 2015 (12,889) 20,316 77
|
|
|
|
|
|
Company
Merger Translation
Reserve Reserve Totals
£'000 £'000 £'000
At 1 January 2015 909 (98) 6,263
Deficit for the year - - (351)
Cash share issue - - 2,502
Share issue costs - - (99)
|
|
|
|
|
|
At 31 December 2015 909 (98) 8,315
|
|
|
|
|
|
17. TRADE AND OTHER PAYABLES
Group Company
2015 2014 2015 2014
£'000 £'000 £'000 £'000
Current:
Trade creditors 399 1,343 69 26
Amounts owed to group undertakings - - 115 116
Other creditors 371 390 4 -
Accrued expenses 67 25 61 21
Directors' loan accounts 149 156 - -
|
|
|
|
|
|
|
986 1,914 249 163
|
|
|
|
|
|
|
|
|
| ||||||||
18. FINANCIAL LIABILITIES - BORROWINGS
In February 2015, a loan of £165,380 was granted by the Banco Bilbao Vizcaya to Iberian Resources Spain SL secured against the VAT receivable at that time. Repayment of this loan in 12 equal instalments commenced in December 2015 and the balance outstanding at 31 December 2015 was £143,914.
The company issued a Convertible Zero interest Security with a nominal value of $800,000 (£513,000) to Bergen Global Opportunity Fund LP ("Bergen") a New York based institutional investment fund in 2014. This security may have been converted at the option of Bergen into Ordinary Shares, but before any such conversion occurred, the amount was fully repaid during the year.