Source - RNS
RNS Number : 6308J
Metminco Limited
13 September 2016
 

AIM ANNOUNCEMENT

13 September 2016

 

HALF YEAR RESULTS

 

Metminco Limited (ASX: MNC; AIM: MNC) is pleased to announce that it has today released its Report for the half year ended 30 June 2016.

An extract from the Report is set out below.  The full Report can be accessed from the Company's website www.metminco.com.au.

 

HIGHLIGHTS

Quinchia Gold Portfolio

·       Metminco Limited (Metminco or the Company) acquired Miraflores Compania Minera SAS (Miraflores Compania), formerly Minera Seafield SAS from RMB Australia Holdings Limited (RMB) on 20 June 2016.

·       Miraflores Compania owns 100% of the Quinchia Gold Portfolio which;

  • has a NI 43-101 Mineral Resource of 2.8 million ounces of gold,
  • has a JORC 2012 Measured and Indicated Mineral Resource of 832,000 ozs Au and 817,000 ozs Ag at a 1.2g/t Au cut-off.
  • covers 6,043Ha of granted concessions and an additional 3,792Ha of pending applications,
  • hosts a number of deposits and significant exploration targets including Miraflores, Dosquebradas, Tesorito and Chuscal, and
  • is located in Colombia's Middle Cauca Belt, which hosts several multimillion ounce gold discoveries.

·       The Quinchia Gold Portfolio provides the Company with a near term cash flow opportunity via the Miraflores Project where a mineable quantity of 4.03 million tonnes at 3.51g/t Au and 2.84g/t Ag has been scheduled containing 455,000 ozs Au and 368,000 ozs Ag.

·       Updated Miraflores Project mining study confirms an underground mining only operation to be technically and financially more robust than previous studies and will now be the focus of the planned Feasibility Study.

·       The Company will seek funding for the completion of a Feasibility Study and Environmental Impact Statement (EIS) at the Miraflores Project with a view to having the project permitted and the development funded by the end of the 2017 calendar year. 

Los Calatos Copper-Molybdenum Project

·       Agreement with CD Capital Natural Resources Fund III LP (CD Capital) to fund the completion of Pre-feasibility and Feasibility Studies. CD Capital to subscribe for new shares of up to US$45 million to acquire up to 70% of Los Calatos Holding Ltd  (CD Capital Transaction).

·       Initial investment of US$16 million to fund an infill drilling program to upgrade Inferred Mineral Resources to Measured and Indicated Mineral Resource categories, metallurgical testwork and permitting to meet with the requirements of a Pre-feasibility Study.

Mollacas

·       The Company and the landowner at the Mollacas Project settled and terminated all outstanding claims in relation to the access dispute. 

·       The Company is assessing options available to it in relation to this project including seeking to secure land access for mining purposes.

Corporate

·       The CD Capital Transaction is anticipated to be completed by mid-October 2016. An interim funding arrangement with CD Capital to fund the Los Calatos Project until completion takes place, reducing the Company's monthly cash burn by approximately A$100,000 from September 2016.

·       The Company's cash position as at 30 June 2016 was approximately A$0.6 million. Evaluation of funding alternatives to progress the Miraflores Project through to completion of a Bankable Feasibility Study and decision to mine is underway.

 

Managing Director, William Howe said, "The period has seen the completion of two very significant events for the Company, the first of which resulted in Los Calatos becoming a genuine development option through securing a financial partner and, secondly, our entrance into the gold sector with the acquisition of Miraflores Compania. The focus is now firmly on advancing our near term and robust Miraflores Project in Colombia through to Feasibility and construction finance.

I am pleased we have exited a period of significant headwinds for the sector with two highly promising projects, and we look forward to updating our shareholders as we progress both projects towards development."

 

 

 

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

 

For the half year ended 30 June 2016

 

 

Note

 

30 June 2016

$

 

30 June 2015

$

 

 

 

 

Revenue - interest income

 

192

3,340

Foreign exchange gain / (loss)

 

25,879

(270,194)

Administration expenses

 

(116,248)

(131,645)

Corporate expenses                         

 

(615,995)

(880,223)

Occupancy expense

 

(129,856)

(138,428)

Exploration expenditure written off

4

(290,378)

(114,483)

Evaluation and due diligence expenses

 

-

(398,084)

Loss before income tax

2

(1,126,406)

(1,929,717)

Income tax expense

 

-

-

Loss for the period from continuing operations

 

(1,126,406)

(1,929,717)

Other comprehensive income:

Items that may be reclassified subsequently to profit or loss:

 

 

 

Exchange differences on translating foreign controlled entities 

8

(1,244,390)

5,088,415

Total comprehensive (loss)/income for the period

 

(2,370,796)

3,158,698

 

 

 

 

Loss attributable to:

 

 

      Members of the parent entity

 

(1,126,406)

(1,929,717)

 

 

(1,126,406)

(1,929,717)

Total comprehensive (loss)/income attributable to:

 

 

 

      Members of the parent entity

 

(2,370,796)

3,158,698

 

 

(2,370,796)

3,158,698

Loss per share

 

 

 

      From continuing operations:

 

 

 

      Basic loss per share (cents)

9

(0.04)

(0.09)

      Diluted loss per share (cents)

9

(0.04)

(0.09)

 

 

 

 

These financial statements should be read in conjunction with the accompanying notes.

           

 

 

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

 

As at 30 June 2016

 

 

Note

 

30 June 2016

$

 

31 December 2015

$

ASSETS

 

 

 

CURRENT ASSETS

 

 

 

Cash and cash equivalents

 

589,292

949,790

Trade and other receivables

7

231,618

186,858

Other assets

 

23,616

21,815

TOTAL CURRENT ASSETS

 

844,526

1,158,463

NON-CURRENT ASSETS

 

 

 

Trade and other receivables

7

2,234,196

2,180,893

Property, plant and equipment

3

4,912,504

4,586,160

Exploration and evaluation expenditure

4

168,772,346

160,886,215

TOTAL NON-CURRENT ASSETS

 

 175,919,046

167,653,268

TOTAL ASSETS

 

176,763,572

168,811,731

LIABILITIES

 

 

 

CURRENT LIABILITIES

 

 

 

Trade and other payables

5

2,118,248

317,058

Short-term employee benefits

6

260,066

258,225

TOTAL CURRENT LIABILITIES

 

2,378,314

575,283

NON-CURRENT LIABILITIES

 

 

 

Long-term employee benefits

6

85,769

83,155

Long-term payable

5

4,708,895

-

TOTAL NON-CURRENT LIABILITIES

4,794,664

83,155

TOTAL LIABILITIES

 

7,172,978

658,438

NET ASSETS

 

169,590,594

168,153,293

EQUITY

 

 

 

Issued capital

11

327,845,561

324,037,464

Other reserves

 

(19,465,728)

(18,208,268)

Accumulated losses

 

(138,789,239)

(137,675,903)

TOTAL EQUITY

 

169,590,594

168,153,293

 

 

 

 

These financial statements should be read in conjunction with the accompanying notes.

 

 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

 

 

For the half year ended 30 June 2016

 

 

 

Issued

Capital

Accumulated Losses

Option Reserve

Foreign Currency

Translation Reserve

 

Acquisition Reserve

Total

 

 

$

$

$

$

$

$

Balance at 1 January 2015

 

318,677,036

(88,790,974)

253,594

14,612,641

(41,506,662)

203,245,635

Loss attributable to members of  the parent entity

 

_

(1,929,717)

_

_

_

(1,929,717)

Other comprehensive income

 

_

_

_

5,088,415

_

5,088,415

Total comprehensive income for the period

 

_

(1,929,717)

_

5,088,415

_

3,158,698

Shares issued during the period

 

4,193,584

_

_

_

_

4,193,584

Transaction costs

 

(161,264)

_

_

_

_

(161,264)

Options lapsed during the period

 

_

185,849

(185,849)

_

_

_

Balance at 30 June 2015

 

322,709,356

(90,534,842)

67,745

19,701,056

(41,506,662)

210,436,653

 

 

 

 

 

 

 

 

Balance at 1 January 2016

 

324,037,464

(137,675,903)

67,756

23,230,638

(41,506,662)

168,153,293

Loss attributable to members of  the parent entity

 

_

(1,126,406)

_

_

_

(1,126,406)

Other comprehensive loss

 

_

_

_

(1,244,390)

_

(1,244,390)

Total comprehensive loss for the period

 

_

(1,126,406)

_

(1,244,390)

_

(2,370,796)

Shares issued during the period

 

3,960,910

_

_

_

_

3,960,910

Transaction costs

 

(152,813)

_

_

_

_

(152,813)

Options lapsed during the year

 

_

13,070

(13,070)

_

_

_

Balance at 30 June 2016

 

327,845,561

(138,789,239)

54,686

21,986,248

(41,506,662)

169,590,594

 

 

 

 

 

 

 

 

 

These financial statements should be read in conjunction with the accompanying notes.

 

 

 

CONSOLIDATED STATEMENT OF CASH FLOWS

 

For the half year ended 30 June 2016

 

 

30 June 2016

$

 

30 June 2015

$

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

Payments to suppliers and employees

 

(779,763)

(941,062)

Evaluation and due diligence expenses

 

-

(398,084)

Interest received

 

192

3,340

Net cash used in operating activities

(779,571)

(1,335,806)

CASH FLOWS FROM INVESTING ACTIVITIES

 

 

 

Sale/(Purchase) of property, plant and equipment

 

12,100

(6,539)

Payments for exploration expenditure

 

(1,283,365)

(1,621,981)

Purchase of Miraflores Compania

14

(219,105)

-

Net cash used in investing activities

 

(1,490,370)

(1,628,520)

CASH FLOWS FROM FINANCING ACTIVITIES

 

 

 

Proceeds from issue of shares

 

1,960,910

4,193,584

Payments in respect to capital raisings

 

(152,814)

(161,264)

Cash received on acquisition of Miraflores Compania

14

75,467

-

Net cash provided by financing activities

 

1,883,563

4,032,320

 

 

 

 

Net(decrease)/increase in cash held

 

(386,378)

1,067,994

Cash and cash equivalents at beginning of financial period

 

949,790

1,192,693

Effect of exchange rates on cash holdings in foreign currencies

 

25,880

(270,194)

Cash and cash equivalents at end of financial period

589,292

1,990,493

 

 

 

These financial statements should be read in conjunction with the accompanying notes.

 

         

 

 

For further information, please contact:

 

METMINCO LIMITED

 

 

Stephen Tainton / Phil Killen

 

Office:  +61 (0) 2 9460 1856

 

 

 

NOMINATED ADVISOR AND BROKER

 

 

RFC Ambrian

 

 

Australia

 

 

Will Souter / Nathan Forsyth

 

Office:  +61 (0) 2 9250 0000

 

 

 

United Kingdom

 

 

Charlie Cryer

 

Office:  +44 (0) 20 3440 6800

 

 

 

JOINT BROKER

 

 

SP Angel Corporate Finance LLP UK)

 

 

Ewan Leggat

 

Office:  +44 (0) 20 3470 0470

 

 

 

UK FINANCIAL PR

 

 

Camarco

 

 

Gordon Poole / Tom Huddart

 

Office:  + 44 (0) 20 3757 4997

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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