Source - RNS
RNS Number : 8742K
Sovereign Mines of Africa PLC
27 September 2016
 

27 September 2016                                                                                             

 

Sovereign Mines of Africa PLC

("SMA" or "the Company")

 

Interim Results

 

Sovereign Mines of Africa PLC (AIM: SML), today announces its interim results for the six months ended 30th June 2016.

 

 

Enquiries:

 

SOVEREIGN MINES OF AFRICA PLC

Giles Clarke - c/o Billy Clegg                                                      +44 20 3757 6983

 

SHORE CAPITAL - NOMINATED ADVISER & BROKER

Toby Gibbs - Corporate Finance

Jerry Keen - Corporate Broking                                                   +44 207 408 4090

 

CAMARCO

Gordon Poole / Sean Blundell                                                     +44 20 3757 6983

 

 

 

CHAIRMAN'S STATEMENT

 

Since our appointment to the Board in December 2015, Rupert Fraser and I have been conducting a strategic review of the company's assets and activities with a view to enhancing shareholder value. We look forward to setting out our vision and strategy for the businesses in the near future. As previously stated our plans for the business may well involve the pursuit of an acquisition which would trigger a reverse takeover under the AIM Rules. 

 

Following SMA's successful fundraise at the end of 2015, in which both Rupert and I invested in to provide additional funding to the Company, it had cash resources of approximately £452,000 at 30 June 2016. The Company reports a net loss of £43,795 for the six-month period ended 30 June 2016, compared to a loss of £41,351 for the corresponding period in 2015.

 

Post period end, we were delighted to announce the appointment of Jeremy Sparrow to the Board as a Non-executive Director. Jeremy brings over 25 years of investment experience to the Company and was most recently Head of Investec Resource Investment Banking for Asia and Australia.  We are confident his deep sector knowledge and expertise will augment the board's existing skills and add significant value ahead of our next stage of growth and as we implement the new strategy.

 

Following careful investigations, and having taken considerable specialist professional advice, the Board has reached detailed positions and is in advanced discussions with potential parties on both our Guinean interests, currently carried in the books at nil value, and on a potential new acquisition in the mining industry. I hope to provide updates shortly.

 

C G Clarke

Chairman

26 September 2016

 

 

 

 

 

UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

 

Six months ended 30 June 2016

                                                                                               

 

 



Notes

 

 

 

 

 

 

 

 

 Six months ended 30/06/16

Unaudited 

   £

 

 Six months ended 30/06/15

Unaudited 

   £

Year ended 31/12/15

Audited     

£

Administrative expenses - (operating loss)

 

 

 

(44,976)

 

(47,333)

(1,418,432)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Finance income

 

 

 

1,181

 

494

557

 

 

 

 

 

 

 

 

 

 

------------------

 

------------------

------------------

Loss on ordinary activities before taxation

 

(43,795)

 

(84,739)

    (1,417,875)

 

 

 

 

 

 

 

 

Tax on loss on ordinary activities

 

 

 

-            

 

  -          

-            

 

 

 

 

 

 

 

 

Loss for the financial period

 

 

 

(43,795)

 

(46,839)

(1,417,875)

 

 

 

 

===========

 

===========

===========

 

 

 

 

 

 

 

 

Other comprehensive income

 

 

 

-            

 

 -           

 -           

 

 

 

 

 

 

 

 

Total comprehensive income for the period

 

 

 

(43,795)

 

(46,839)

(1,417,875)

 

 

 

 

===========

 

===========

===========

Loss for the period and Total comprehensive loss attributable to:

 

 

 

 

 

 

 

Owners of the parent

 

 

 

(43,795)

 

(46,839)

(1,417,875)

Non-controlling interest

 

 

 

             -

 

             -

             -

 

 

 

 

(43,795)

 

(46,839)

(1,417,875)

 

 

 

 

===========

 

===========

===========

 

 

 

 

 

 

 

 

Loss per ordinary share (pence) - From continuing operations: basic and diluted

 

4

 

(0. 005)p

 

(0. 02)p

(0.45)p

 

 

 

 

 

UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 June 2016

 

 

 

 

As at

As at

As at

 

 

30/06/16

30/06/15

31/12/15

 

Note

Unaudited

Unaudited

Audited

 

 

  £

  £

£

FIXED ASSETS

 

 

 

 

 

Intangible assets

 

-

      1,275,059

-

 

 

 

------------------

------------------

------------------

 

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

Cash and cash equivalents

 

452,866

99,663

501,170

 

 

 

------------------

------------------

------------------

 

 

 

452,866

99,663

501,170

 

CURRENT LIABILITIES

 

 

 

 

 

Trade and other payables

 

(27,131)

(65,683)

(37,443)

 

 

 

-----------------

-----------------

------------------

 

NET CURRENT ASSETS

 

425,735

33,979

463,727

 

 

 

----------------

----------------

------------------

 

NET ASSETS

 

425,735

1,309,039

463,727

 

 

 

===========

===========

===========

 

 

 

 

 

 

 

EQUITY ATTRIBUTABLE TO EQUITY

 

 

 

 

 

HOLDERS OF THE COMPANY

 

 

 

 

 

Share capital

 

3,163,589

3,108,589

3,163,589

 

Share premium account

 

5,563,520

5,099,544

5,563,520

 

Reconstruction reserve

 

(586,100)

(586,100)

(586,100)

 

Share-based payment reserve

 

32,493

19,942

26,690

 

Retained earnings

 

(7,747,767)

(6,332,936)

(7,703,972)

 

 

 

----------------

----------------

----------------

 

TOTAL EQUITY

 

425,735

1,309,039

463,727

 

 

 

===========

===========

===========

 

             

 

 

Net assets per share (pence) - basic

5

0.050p

0.0042p

0.054 p

 

 

========

========

========

 

 

 

 

 

 

UNAUDITED CONSOLIDATED CASH FLOW STATEMENT

Six months ended 30 June 2016

 

 

 

 

Six months

Six months

Year ended

 

 

to 30/06/16

to 30/06/15

31/12/15

 

 

Unaudited

Unaudited

Audited

 

 

£

£

 £

 

 

 

 

 

Net cash outflow from operating activities 

3

 

(49,485)

 

(34,621)

((149,153))

 

 

-------------------------------------------

-------------------------------------------

---------------------------------------------------

Cash flows from investing activities

 

 

 

 

Purchase of intangible fixed assets

 

-

(116,161)

(119,161)

 

 

 

 

 

 

 

-------------------------------------------

-------------------------------------------

---------------------------------------------------

 

 

(49,485)

(116,161)

(119,161)

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

Net proceeds from issue of share capital

 

-

-

518,976

Finance income

 

1,181

494

557

 

 

-------------------------------------------

-------------------------------------------

---------------------------------------------------

 

 

1,181

494

519,533

 

 

 

 

 

 

 

 

 

 

Net (decrease)/ increase in cash and cash equivalents 

 

(48,304)

(150,289)

251,219

 

 

 

 

 

Cash and cash equivalents at beginning of period

 

501,170

249,951

249,951

 

 

-------------------------------------------

-------------------------------------------

---------------------------------------------------

Cash and cash equivalents at end of period

 

452,866

99,663

501,170

 

 

===========================================

===========================================

===================================================

 

 

 

 

 

 

 

UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

Six months ended 30 June 2016

 

 

 

 

 

Share capital

Share premium

Reconstruction reserve

Retained earnings

Share-based payment reserve

Total

 

£

£

£

£

£

£

At 1 January 2015

3,108,589

5,099,544

(586,100)

(6,286,097)

14,454

1,350,390

 

 

Loss and total comprehensive income for six months ended 30 June 2015

-

-

-

(46,839)

 

 

 

 

 

-

(46,839)

Share-based payment expense

 

-

 

-

 

-

 

-

 

5,488

5,488

 

________

________

________

________

_______

________

At 30 June 2015

3,108,589

5,099,544

(586,100)

(6,332,936)

19,942

1,309,039

 

Loss and total comprehensive income for six months ended 31 December 2015

-

-

-

(1,371,036)

 

 

 

 

 

-

(1,371,036)

Share-based payment expense

 

-

 

-

 

-

 

-

 

6,748

 

6,748

Issue of shares, net of share issue costs

 

55,000

 

463,976

 

 

 

 

518,976

 

________

________

________

________

________

________

At 31 December 2015

3,163,589

5,563,520

(586,100)

(7,703,972)

26,690

463,727

 

Loss and total comprehensive income for six months ended 30 June 2016

 

 

 

(43,795)

 

(43,795)

Share-based payment expense

 

 

 

 

 

5,803

5,803

 

________

________

________

________

_______

________

At 30 June 2016

3,163,589

5,563,520

(586,100)

(7,747,767)

32,493

425,735

 

=======

========

========

=======

=======

========

                     

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SOVEREIGN MINES OF AFRICA PLC

 

Notes to the interim consolidated financial information

 

Six months ended 30 June 2016

 

1.   GENERAL

 

     The interim financial information for the six-month period ended 30 June 2016 are unaudited and were approved by the Directors of the Company on 26 September 2016. The condensed financial information set out above does not constitute statutory accounts within the meaning of Section 434 of the Companies Act 2006.

 

The financial information contained in this report in respect of the annual financial statements for the year ended 31 December 2015 has been extracted from the report and financial statements for that year which have been filed with the Registrar of Companies. The report of the auditors on those accounts did not contain a statement under section 498(2) or (3) of the Companies Act 2006 and was not qualified, although it included an emphasis of matter in respect of going concern.

 

     The interim financial information is unaudited and has not been reviewed by the auditors.

 

     The Company's operations are not subject to seasonality or cyclicality.

 

     No dividend has been declared or paid in this interim period.

 

2.   ACCOUNTING POLICIES

 

The principal accounting policies and methods of computation have remained unchanged from those used in the preparation of the Company's 2015 annual financial statements and are expected to be used for the Company's 2016 annual financial statements.

 

 

3.   CASH FLOWS FROM OPERATING ACTIVITIES

 

 

Six months

Six months

Year ended

 

to 30/06/16

to 30/06/15

31/12/15

 

Unaudited

Unaudited

Audited

 

£

£

£

Loss before taxation

(43,795)

(46,839)

(1,417,875)  

Adjustments for:

 

 

 

Impairment losses on intangible assets

-

-

1,278,059

Finance income

(1,181)

(494)

(557)

Share-based payment expense

5,803

5,488

12,236

 

-------------------

-------------------

--------------------

 

(39,173)

(41,845)

(128,137)  

 

 

 

 

Decrease in financial assets at fair value

-

-

-

Increase in receivables

-

-

-

Increase/(decrease) in payables

(10,312)

7,224

(21,016)

 

----------------

----------------

----------------

Net cash used in operating activities

(49,485)

(34,621)

(149,153)

 

=============

=============

 

=============

 

 

 

 

4.     LOSS PER SHARE

 

 

Six months

Six months

Year ended

 

 

to 30/06/15

to 30/06/15

31/12/15

 

 

Unaudited

Unaudited

Audited

 

 

 

 

 

 

 

 

 

 

Weighted average number of ordinary shares in issue

 

860,858,859

310,858,850

312,363,590

 

 

------------------------

-------------------------

-----------------------------

 

 

 

 

 

Loss after taxation

 

£(43,795)

£(46,839)

£(1,417,875)  

 

 

-----------------------

-------------------------

-----------------------------

 

 

 

 

 

Loss per share

 

(0. 005)p

(0. 02)p

(0.45)p

 

 

==============

===============

===================

     

Due to there being a loss during the period, the share options are anti-dilutive and therefore the diluted loss per share is the same as the loss per share.

 

 

5.   NET ASSET VALUE PER SHARE

 

      The "basic" net asset value per share figures are calculated on the basis of the net assets attributable to equity shareholders divided by the number of ordinary shares in issue at the relevant dates of 860,859,050 (30 June 2015: 310,858,850; 31 December 2015: 860,858,850).

 

6.    SHARE CAPITAL

 

Issued and fully paid:

 

2016

2015

  2016

2015

 

No. of shares

No. of shares

  £

£

 

 

 

 

 

Ordinary shares of £0.0001 each

860,859,050

310,858,850

3,163,589

31,086

Deferred shares of £0.099 each

-

310,858,850

-

3,077,503

 

---------------

---------------

------------

------------

 

621,717,700

310,858,850

3,163,589

3,108,589

 

========

========

======

======

 

The deferred shares carry no voting or dividend rights. Deferred shareholders are entitled to receive the amount paid up or credited as paid up on their respective holdings of deferred shares only after there has been paid on each ordinary share the nominal amount paid up on such share plus a further £1 per ordinary share. The holders of the deferred shares shall not be entitled to participate further in any distribution of the assets or the capital of the Company.

 

 

7.  COPIES OF INTERIM REPORT

 

      Copies of the interim report are available to the public free of charge from the Company at Lakeside Fountain Lane, St Mellons, Cardiff, United Kingdom, CF3 0FB during normal office hours, Saturdays and Sundays excepted, for 14 days from today and are available on the website at www.sovmines.com.

      


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

Related Charts

Sovereign Mines of Africa (SMA)

-0.01p (-1.90%)
delayed 18:15PM