27 Sep 2012 07:00
27 September 2012
W Resources Plc
("W" or the "Company")
Interim results for the six months ended 30 June 2012
W Resources Plc (AIM:WRES), formerly Caspian Holdings Plc, a tungsten and gold exploration and development company with assets in Spain and Portugal, announces its interim results for the six months to 30 June 2012.
Highlights
·; La Parrilla tailings assay results exceeded expectations resulting in an extension of the drilling programme to further delineate the size and grade of the La Parrilla asset
·; Option to acquire La Parrilla tungsten mine extended to August 2013
·; Acquisition of Australian Iron Ore and its 100% owned subsidiary Iberian Resources Portugal Recursos Minerais Unipessoal LDA in July 2012, with tungsten and gold development and exploration projects in Portugal
·; Two capital placements completed during the period raising £0.9 million
·; Name changed to W Resources Plc to reflect the change in business strategy and focus
Chairman Michael Masterman said: "The first six months of the year have transformed W into an active tungsten and gold exploration and appraisal company with exceptional results at La Parrilla. In the next period we will advance the La Parrilla Tailings and continue an active resource extension and exploration program at La Parrilla (tungsten), Régua (tungsten), Tarouca (tungsten) and Portalegre (gold)".
An extract of the Interim Results for W for the six months ended 30 June 2012 is presented below. W has published its interim report, together with this announcement on the Company's website www.wresources.co.uk
Enquiries:
W Resources Plc | Grant Thornton Corporate Finance - Nomad |
Michael Masterman | Gerry Beaney / Melanie Frean / Jen Clarke |
T: +44 (0) 20 7193 7463 | T: +44 (0) 20 7383 5100 |
www.wresources.co.uk | |
Simple Investments - Broker | Gable Communications |
Andy Thacker / Nick Emerson | Justine James |
T: +44 (0) 1483 413500 | T: +44 (0) 20 7193 7463 |
www.simple-investments.co.uk | M: +44 (0) 7525 324431 |
About W Resources Plc
W Resources Plc (AIM:WRES), is a tungsten and gold exploration and development company with a portfolio of assets including the La Parrilla tungsten mine and tailings project in the Southwest of Spain and the Portalegre gold exploration license in 200k east of Lisbon in Portugal.
Chairman's Statement
The first six months of 2012 marked achievement and advancement for W Resources Plc with successful and solid progress at the La Parrilla site and the acquisition of Australian Iron Ore "(AIO)" in early July.
Iberian Resources Spain
Following the acquisition of Iberian Resources Spain S.L. in December 2011, the Company immediately commenced a 1,500 metre drilling campaign at the La Parrilla site in January 2012. To date, the Company has completed six holes in its extension drilling programme with assay results received for holes 1-5.
The assay results received for the first 5 holes in the extension programme have exceeded expectations and, as such, the Company is currently extending its drilling programme to further delineate the size and grade of the La Parrilla extension.
The technical design of the La Parrilla tailings project was finalised in January, which was submitted to the Mining Department of the regional authority of the Junta de Extremadura for approval. The Company now expects approval to be granted in October 2012 with the first production from the tailings project expected in Q2 2013.
Iberian Resources Portugal (AIO Acquisition)
The Company further strengthened its asset portfolio in early July with the acquisition of AIO and its 100% subsidiary Iberian Resources Portugal Recursos Minerais Unipessoal LDA, which holds tungsten and gold assets in Portugal.
Included in the asset portfolio is an exploration licence for the São Martinho gold prospect near the town of Portalegre (Northern Alentejo), covering an area of 101.7 km². In February 2012, an extended drilling programme to further develop the topographical maps commenced and to date 1,300m of a 3,000m reverse circulation drilling programme has been completed. Initial assay results are positive.
Corporate
With the acquisition of Iberian Resources Portugal and Iberian Resources Spain, the Company has successfully made the transition to a mining and metals company with high potential interests in tungsten and gold in the Iberian peninsula. Oil and gas investment interests in Black Gold of Kentucky remain a minor element of the business however exit options are under consideration.
Financial
Two capital placements were completed by the Company during the first six months of 2012. The funds raised were used to finance the La Parrilla drilling campaign and for working capital purposes.
Despite the intensive drilling programme during the first half of 2012, the Company kept costs low with a loss after taxation of £146,341.
Tungsten
With Tungsten listed in the top five critical metals, the company's focus on this metal provides a good growth plan for the business. The tailings and mine opportunities provide a low cost, high margin resource development opportunity, with first production on track for Q2 2013.
Market conditions remain attractive for Western tungsten producers as significant supply shortages are expected outside China. This strategic metal is integral to the defence industry, with demand continuing to grow from other key industries including aerospace and energy, whilst domestic demand outstrips supply capability.
Michael Masterman
Chairman
W Resources Plc
27 September 2012
W RESOURCES Plc
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED 30TH JUNE 2012
Unaudited Six Months to 30 June 2012 | Unaudited Six Months to 30 June 2011 | Year to 31 December 2011 | |||
£ | £ | £ | |||
Continuing Operations | |||||
Revenue | - | - | - | ||
Costs of Sales | - | - | - | ||
Gross Profit | - | - | - | ||
Administrative Expenses | (146,341) | (41,222) | (93,004) | ||
Operating Loss | (146,341) | (41,222) | (93,004) | ||
Negative Goodwill on Acquisition of Subsidiary | - | - | 106,033 | ||
Share of Loss of Associates | - | - | (99,622) | ||
Loss before Income Tax | (146,341) | (41,222) | (86,593) | ||
Income Tax | - | - | - | ||
Loss for the Period | (146,341) | (41,222) | (86,593) | ||
Loss Attributable to: | |||||
Owners of the Parent | (146,341) | (41,222) | (86,593) | ||
Total Comprehensive Loss for the Period | (146,341) | (41,222) | (86,593) | ||
Basic and Diluted Loss per Share | (0.01p) | (0.01p) | (0.01p) |
W RESOURCES Plc
GROUP FINANCIAL POSITION
30TH JUNE 2012
Unaudited 30th June 2012 | Unaudited 30th June 2011 | 31st December 2011 | |||
£ | £ | £ | |||
ASSETS | |||||
NON-CURRENT ASSETS | |||||
Investment in Associate | 114,905 | 198,998 | 100,000 | ||
Intangible Fixed Assets | 1,185,744 | - | 825,000 | ||
Tangible Fixed Assets | 6,776 | - | 7,000 | ||
1,307,425 | 198,998 | 932,000 | |||
CURRENT ASSETS | |||||
Trade and Other Receivables | 237,449 | 9,391 | 30,475 | ||
Cash and cash equivalents | 478,641 | 80,527 | 221,393 | ||
716,090 | 89,918 | 251,868 | |||
TOTAL ASSETS | 2,023,515 | 288,916 | 1,183,868 | ||
EQUITY | |||||
SHAREHOLDERS EQUITY | |||||
Called up share capital | 1,103,887 | 471,067 | 811,446 | ||
Share premium account | 11,862,872 | 11,119,419 | 11,244,215 | ||
Retained earnings | (11,578,224) | (11,386,511) | (11,431,883) | ||
Merger Reserve | 385,020 | - | 385,020 | ||
TOTAL SHAREHOLDERS EQUITY | 1,773,555 | 203,975 | 1,008,798 | ||
LIABILITIES | |||||
CURRENT LIABILITIES | |||||
Trade and other payables | 249,960 | 84,941 | 175,070 | ||
TOTAL LIABILITIES | 249,960 | 84,941 | 175,070 | ||
TOTAL EQUITY AND LIABILITIES | 2,023,515 | 288,916 | 1,183,868 | ||
W RESOURCES Plc
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 30TH JUNE 2012
Merger Reserve | Called Up Share Capital | Profit and Loss Account | Share Premium | Total Equity | |||||
£ | £ | £ | £ | £ | |||||
Balance at 1st January 2012 | 385,020 | 811,446 | (11,431,883) | 11,244,215 | 1,008,798 | ||||
Issue of Share Capital | - | 292,441 | - | 618,657 | 911,098 | ||||
Total Comprehensive Income | - | - | (146,341) | - | (146,341) | ||||
Balance at 30th June 2012 (unaudited) | 385,020 | 1,103,887 | (11,578,224) | 11,862,872 | 1,773,555 | ||||
Year to 31st December 2011 | |||||||||
Balance at 1st January 2011 | - | 446,067 | (11,345,290) | 11,064,419 | 165,196 | ||||
Issue of Share Capital | 385,020 | 365,379 | - | 179,796 | 930,195 | ||||
Total Comprehensive Income | - | - | (86,593) | - | (86,593) | ||||
Balance at 31st December 2011 | 385,020 | 811,446 | (11,431,883) | 11,244,215 | 1,008,798 | ||||
6 Months to 30th June 2011 | |||||||||
Balance at 1st January 2011 | - | 446,067 | (11,345,290) | 11,064,419 | 165,196 | ||||
Issue of Share Capital | - | 25,000 | - | 55,000 | 80,000 | ||||
Total Comprehensive Income | - | - | (41,221) | - | (41,221) | ||||
Balance at 30th June 2011 (unaudited) | - | 471,067 | (11,386,511) | 11,119,419 | 203,975 | ||||
W RESOURCES Plc
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED 30TH JUNE 2012
Unaudited Six Months to 30 June 2012 | Unaudited Six Months to 30 June 2011 | Year to 31 December 2011 | |||
£ | £ | £ | |||
Cash Flows from Operating Activities | |||||
Cash Absorbed by Operations | (278,201) | (13,949) | (82,097) | ||
Cash Flows for Investing Activities | |||||
Cash acquired on Acquisition of subsidiary | - | - | 519 | ||
Investment in Associates | (14,905) | - | - | ||
Project Development Costs | (360,744) | - | - | ||
Net Cash from Investing Activities | (375,649) | - | 519 | ||
Cash Flows from Financing Activities | |||||
Share Issue | 292,441 | 25,000 | 108,699 | ||
Share Premium | 618,657 | 55,000 | 179,796 | ||
Net Cash from Financing Activities | 911,098 | 80,000 | 288,495 | ||
Increase in Cash and Cash Equivalents | 257,248 | 66,051 | 206,917 | ||
Cash and Cash Equivalent at Beginning of Period | 221,393 | 14,476 | 14,476 | ||
Cash and Cash Equivalent at end of Period | 478,641 | 80,527 | 221,393 | ||
Reconciliation of Cash Flows from Operations | |||||
Loss before Tax | (146,341) | (41,221) | (86,593) | ||
Impairment of Associates | - | - | 99,622 | ||
Exchange Difference | 224 | - | (624) | ||
Negative Goodwill on Acquisition of Subsidiary | - | - | (106,033) | ||
(146,117) | (41,221) | 93,628 | |||
(Increase)/Decrease in Trade and Other Receivables | (206,974) | (5,117) | (2,466) | ||
Payable on Acquisition of Subsidiary | - | - | (70,830) | ||
Increase/(Decrease) in Trade and Other Payables | 74,890 | 32,389 | 84,827 | ||
Cash Absorbed by Operations | (278,201) | (13,949) | (82,097) | ||