Source - RNS
RNS Number : 1306L
BlueRock Diamonds PLC
29 September 2016
 

29 September 2016

 

BLUEROCK DIAMONDS PLC

("BlueRock" or the "Company")

Interim results for the six months ended 30 June 2016

                                                                                                                                                                                             

Introduction

BlueRock Diamonds (AIM: BRD) is pleased to announce its interim results for the six months ended 30 June 2016. The interims will be available today for download from www.bluerockdiamonds.co.uk.

 

Chairman's Statement

 

The first half of 2016 has been a period of consolidation.  Whilst production has been lower than that we would have hoped, we have spent the period preparing for the recommencement of operations following our operational review which has been delayed by the unexpected and unwelcome closure by the Department of Mineral Resources in July 2016.

We have been concentrating on a number of matters in the period.

Personnel

It was recognised early on in the period that given the increased size of our operations we would need to strengthen our management team.  The first step in this process was appointing Adam Waugh as CEO.  Adam was appointed with specific responsibility for undertaking the strategic and operational review, which I will discuss later.  As part of his review, an experienced mine manager, Johan Mihlo, was identified and subsequently appointed in July 2016.  This process took longer than we had envisaged, but the board was keen to ensure that the right person was selected for the task.  Johan has had many years of experience, most recently at Petra Diamonds and previously with BHP Billiton and De Beers.

Following the end of the period, on 19 September 2016, Riaan Visser resigned as a director of BlueRock.  Riaan was instrumental in building BlueRock in particular in identifying the Kareevlei opportunity and establishing our trial mining operations.  The Board has decided not to replace him at present, because Adam Waugh and Johan Mihlo, supported by our BEE partner, Willy van Wyk, had already assumed a significant proportion of Riaan's responsibilities and Riaan's remaining responsibilities, primarily relating to the finance function will be assumed by other members of the team.

Diacar

In 2015, we appointed Diacar as our subcontractor to process oversized rocks that our plant configuration was unable to process, in addition to the loading and hauling services that were already being provided by Diacar.   During the first half of 2016 it became apparent that this commercial arrangement was not in the best interests of BlueRock and following the DMR inspection of the Diacar operations in July 2016 which resulted in a significant proportion of the Diacar loading and hauling equipment failing, it was mutually agreed that both the subcontracting and loading and hauling agreements would be terminated.  Since the end of the period, as announced on 7 September 2016, BlueRock has entered into an option with Diacar expiring on 31 December 2016 to buy the Diacar plant at a price of ZAR 1.6 million for a down payment of ZAR 100,000 and three monthly rental payments of ZAR 50,000. 

It is our view that this is an excellent deal for BlueRock.  It is the belief of our new management team that operated correctly the Diacar plant has the potential to be a valuable addition to our capacity and the 4 month option period gives us the opportunity to investigate this, alongside other options, before committing to any capital cost.

Plant and processing

The new management team has been concentrating on identifying bottlenecks and inefficiencies in the current configuration of our plant and more recently the Diacar plant.  This process has benefitted enormously from Johan's experience and we have also been reviewing best practice in the industry.  Our initial conclusion is that the basic design of our plant is suitable but we believe that its performance can be enhanced by simplifying parts of the process, adding to our pan capacity and by adjusting certain areas of the configuration.

It is our target to process at least 30,000 tonnes per month of ore through either a combination of the Kareevlei plant and the old Diacar plant or through augmenting the Kareevlei plant. A decision in relation to this will be made during the course of Q4 2016.  We anticipate that we will reach our target level gradually because we wish to ensure that each of the steps that we plan to take achieve the desired result.

Following the cancellation of the Diacar contract we have been assessing the most cost effective way of operating in the future in relation to, loading and hauling and crushing and screening, each of which had been subcontracted to Diacar. Having put these services out to tender we have decided to continue to subcontract the loading and hauling from a new third party provider.  We have decided to acquire crushing and screening equipment in order to operate these ourselves; the cost of these services is disproportionate as the only crushing and screening equipment available to subcontract is much larger than we require hence attracting an unnecessarily high cost.  As a result of these measures we expect to reduce our combined per tonne of extracted material cost for these services to reduce from around ZAR 80 per tonne to less than ZAR 50 per tonne, a considerable saving. 

Mining

During the period we have developed a life of mine plan for K2.  This has involved some remedial work as hitherto the strategy had been to reach a lower level, where we expect to achieve higher grades, rather than create a mine which could be exploited over the medium to long term.  The remedial work has begun and we are now in a position to ensure constant supply of ore from all parts of the mine, subject to completion of the financing discussed below.

Exploration of the other pipes

It is our intention to explore in more detail the other pipes at Kareevlei.  In particular we are proposing over the next few months to begin to undertake some limited work on K5 where the test results to date have been limited but encouraging.

Future plans and funding

Subject to financing, we intend to complete the modifications of our plant, to acquire the crushing and screening equipment and to commence our mine development and blasting programme by the end of January 2017.

Events after the reporting period

Acquisition of Diamond Resources Limited

On 1 July 2016, the Group completed the acquisition of a 100% shareholding in Diamond Resources Limited from Tawana Resources NL. The Group agreed to acquire the entire share capital of Diamond Recourses Pty Limited for a total consideration of £32,826 (ZAR 0.7m) on 29 January 2016; however the sales agreement only became effective once the final payment was received on the 1 July 2016.

Due to the timing on the final acquisition payment to Tawana Resources NL, Diamond Resources Limited has not been consolidated in the current financial period.  The final consideration is currently shown as a cash deposit (see note 11).

This acquisition gives the group access to the mining right in respect of the Kareevlei Tenements as well as speculative exploration assets in the Northern Cape. This acquisition had been envisaged at the time of the original acquisition and as a result we now hold the rehabilitation guarantee required by the DMR directly.

 

 

Paul Beck

Non-executive Chairman

 

 

Enquiries:

BlueRock Diamonds plc
Adam Waugh, CEO
www.bluerockdiamonds.co.uk 

+27 (0) 84 431 0118

SP Angel Corporate Finance LLP

Nominated Adviser & Broker
David Facey/Stuart Gledhill

+44 (0) 20 3470 0470

 

 

 

CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS 30 JUNE 2016

Consolidated Statement of Financial Position


Note

6 months ended

30 June

2016

Unaudited

£

6 months ended

30 June

2015

Unaudited

£

12 months ended 31 December 2015

Audited

£

Assets





Non-current assets





Property, plant and equipment

5

517,367

548,430

477,735

Mining assets


164,449

125,659

141,364



681,816

674,089

619,099

Current assets





Inventories

6

26,874

22,145

50,665

Trade and other receivables

7

41,953

15,752

7,623

Cash and cash equivalents

8

458,222

107,364

175,755



527,049

145,261

234,043






Total assets


1,208,865

819,350

853,142

Equity and liabilities





Equity Attributable to Equity Holders of the Parent





Share capital

10

388,046

315,250

321,604

Share premium

10

2,012,781

1,245,934

1,335,952

Retained losses


(2,018,022)

(1,234,836)

(1,859,800)

Convertible loan note reserve

12

293,818

166,570

293,818

Foreign exchange reserve


(9,689)

35,481

185,866



666,934

528,399

277,440






Non-controlling interest


(567,084)

(268,658)

(346,273)



99,850

259,741

(68,833)

Liabilities





Current liabilities





Trade and other payables

11

387,716

190,253

244,134






Non-current liabilities





Borrowings

12

626,236

301,090

596,123

Provisions

13

95,063

68,266

81,718



1,109,015

369,356

921,975






Total equity and liabilities


1,208,865

819,350

853,142

 

 

 

Consolidated Statement of Comprehensive Income

                                                                                                                                                                                                     

 


Note

6 months ended

30 June

2016

Unaudited

£

6 months ended

30 June

2015

Unaudited

£

12 months ended 31 December 2015

Audited

£











Revenue


206,072

33,042

264,372

Other income


58

86

231

Operating expenses


(516,454)

(361,403)

(1,318,302)






Loss before taxation


(310,324)

(328,275)

(1,053,699)

Taxation


-

-

971

Total loss for the period


(310,324)

(328,275)

(1,052,728)






Other Comprehensive Income:





Exchange differences on translating foreign operations


(264,264)

33,445

236,664

Total comprehensive loss, net of tax


(574,588)

(294,830)

(816,064)






Total comprehensive loss, net of tax attributable to:





Owners of the parent


(353,777)

(233,168)

(676,787)

Non-controlling interest


(220,811)

(61,662)

(139,277)



(574,588)

(294,830)

(816,064)






Earnings per share - from continuing activities





 Basic and diluted

15

(0.01)

(0.01)

(0.02)

 

 


Consolidated Statement of Changes in Equity

                                                                                                                                                                                                     

 


Convertible loan note reserve

 

£

Share capital

 

 

£

Share premium

 

 

£

Retained losses

 

 

£

Foreign exchange reserve

 

£

Total attributable to equity holders of the Group

£

Non-controlling interest

 

£

Total equity

 

 

£










Balance at 1 January 2015 (as restated):

149,600

315,250

1,245,934

(1,007,879)

10,732

713,637

(206,996)

506,641

Loss for the period

-

-

-

(257,917)

-

(257,917)

(70,358)

(328,275)

Other comprehensive income:









Foreign exchange movements

-

-

-

-

24,749

24,749

8,696

33,445

Total comprehensive loss:

-

-

-

(257,917)

24,749

(233,168)

(61,662)

(294,830)

Transactions with shareholders:









Issue of convertible loan notes

16,970

-

-

-

-

16,970

-

16,970

Total transactions with shareholders:

16,970

-

-

-

-

16,970

-

(277,860)

Balance at 30 June 2015 (unaudited):

166,570

315,250

1,245,934

(1,265,796)

35,481

497,439

(268,658)

228,781










Balance at 30 June 2015 (unaudited):

166,570

315,250

1,245,934

(1,265,796)

35,481

497,439

(268,658)

228,781

Loss for the period

-

-

-

(594,004)

-

(594,004)

(130,449)

(724,453)

Other comprehensive income:









Foreign exchange movements

-

-

-

-

150,385

150,385

52,834

203,219

Total comprehensive loss:

-

-

-

(594,004)

150,385

(443,619)

(77,615)

(521,234)

Transaction with shareholders:









Issue of convertible loan notes

127,248

-

-

-

-

127,248

-

127,248

Issue of shares

-

6,354

90,018

-

-

96,372

-

96,372

Total transactions with shareholders:

127,248

6,354

90,018

-

-

223,620

-

223,620

Balance at 31 December 2015 (audited):

293,818

321,604

1,335,952

(1,859,800)

185,866

277,440

(346,273)

(68,833)










Balance at 1 January 2016:

293,818

321,604

1,335,952

(1,859,800)

185,866

277,440

(346,273)

(68,833)

Loss for the period

-

-

-

(158,222)

-

(158,222)

(152,102)

(310,324)

Other comprehensive income:









Foreign exchange movements

-

-

-

-

(195,555)

(195,555)

(68,709)

(264,264)

Total comprehensive loss:

-

-

-

(158,222)

(195,555)

(353,777)

(220,811)

(574,588)

Transactions with shareholders:









Issue of  shares

-

66,442

676,829


-

743,271

-

743,271

Total transactions with shareholders:

-

66,442

676,829

-

-

743,271

-

168,683

Balance at 30 June 2016 (unaudited):

293,818

388,046

2,012,781

(2,018,022)

(9,689)

666,934

(567,084)

99,850










 


Consolidated Statement of Cash Flows

                                                                                                                                                                                                     

 



6 months ended

30 June

2016

Unaudited

£

6 months ended

30 June

2015

Unaudited

£

12 months ended 31 December 2015

Audited

£






Operating activities





Cash used in operations

14

(121,493)

(61,754)

(666,436)






Net cash used in operating activities


(121,493)

(61,754)

(666,436)






Investing activities





Purchase of property, plant and equipment

 


(51,692)

(137,658)

(227,543)

(Purchase) / Disposal of non-current assets


(23,085)

8,700

(7,004)






Net cash used in investing activities


(75,047)

(128,868)

(234,547)






Financing activities





Proceeds on share issue


700,000

-

91,373

Proceeds on convertible loan notes issued


-

50,000

450,000

Exercised share options


43,270

-

-

Increase in short term loan


-

-

50,715






Net cash received from financing activities


743,270

50,000

592,088






Net increase / (decrease) in cash and cash equivalents


546,730

(140,622)

(308,895)

Cash and cash equivalents at the beginning of the period

8

175,755

247,986

247,986

Foreign exchange differences


(264,263)

-

236,664






Cash and cash equivalents at the end of the period

8

458,222

107,364

175,755






                                                                                                                                                                                                     



 Notes to the Interim Consolidated Financial Statements

 

1. General information and basis of preparation

 

The condensed interim consolidated financial statements (the "interim financial statements") are for the six month period ended 30 June 2016.

 

These interim financial statements have not been audited, but have been reviewed by the auditors under ISRE 2410 of the Auditing Practices Board. The financial information set out in this report does not constitute statutory accounts as defined by the Companies Act 2006. The comparative figures for the year ended 31 December 2015 were derived from the statutory accounts for the year to 31 December 2015 which have been delivered to the Registrar of Companies. Those accounts received an unqualified audit report which did not contain statements under sections 498(2) or (3) (accounting records or returns inadequate, accounts not agreeing with records and returns or failure to obtain necessary information and explanations) of the Companies Act 2006.

 

The interim financial statements have been prepared on the basis of the accounting policies set out in the December 2015 financial statements of BlueRock Diamonds Plc and IAS 34 "Interim Financial Reporting" on a going concern basis. They are presented in sterling which is also the functional currency of the parent company. They do not include all of the information required in annual financial statements in accordance with IFRS and should be read in conjunction with the consolidated financial statements of the Group for the period ended 31 December 2015.

 

The interim financial statements have been approved for issue by the Board of Directors on 30 September 2016.

 

 

2. Accounting policies

 

The following relevant new standards, amendments to standards and interpretations have been issued by the IASB, but are not effective for the financial year beginning on 1 January 2016,  they have not yet been adopted by the EU, and have not been early adopted.

 

The Directors anticipate that the adoption of these standards and interpretations in future periods will have no material impact on the financial statements of the Company when the relevant standards and interpretations come into effect. The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated:

 

Standard

IFRS 9

 

IFRS 15

IFRS 16

 

The Group has not adopted these standards as it is not expected to have a material effect on the Group.

 

3. Significant judgements and sources of estimation uncertainty

 

In the application of the Group's accounting policies the Directors are required to make estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.

 

The judgements, estimates and assumptions applied in the interim financial statements including the key sources of estimation uncertainty were the same as those applied in the financial statements for the period ended 31 December 2015.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

 

 

4. Segmental reporting

 

Operating segments are identified on the basis of internal reports about components of the Group that are regularly reviewed by the chief operating decision maker in order to allocate resources to the segments and to assess their performance.

 

The Group's operations relate to the exploration for, and development of mineral deposits in the Kimberley region of South Africa and as such the Group has only one reportable segment. The non-current assets in the Kimberley region in June 2016 were £681k (December 2015: £619k)

 

All revenue consists of sales of diamonds in South Africa through auctions as is customary in the industry. The Company sells its diamonds through auctions run by Flawless Diamonds.

 

5. Property, plant and equipment

 


 

Cost / Valuation

£

 

Accumulated depreciation

£

Carrying value

30 June 2016

£

Unaudited

Mine infrastructure

74,719

26,177

48,542

Motor vehicles

7,503

5,442

2,061

Plant and machinery

685,870

219,106

466,764

Total

768,092

250,725

517,367

 

Reconciliation of property, plant and equipment

 


Carrying value

1 January 2016

£

Additions

 

£

Depreciation

 

£

Disposals

 

£

FX revaluation

£

Carrying value

30 June 2016

£

Unaudited

Mine infrastructure

39,816

5,000

(7,139)

-

10,865

48,542

Motor vehicles

2,946

-

(1,005)

-

120

2,061

Plant and machinery

434,973

46,962

(71,761)

(7,809)

64,399

466,764


477,735

51,962

(79,905)

(7,809)

75,384

517,367

 

 

 

6. Inventories

 


30 June

 2016

£

Unaudited

30 June

2015

£

Unaudited

31 December

 2015

£

Audited

Diamonds on hand

26,874

22,145

50,665


26,874

22,145

50,665

 

7. Trade and other receivables

 


30 June

 2016

£

Unaudited

30 June

2015

£

Unaudited

31 December

 2015

£

Audited

Prepayments

6,690

5,963

2,016

VAT

35,263

9,789

5,591

Other receivables

-

-

16


41,953

15,752

7,623

The carrying value of all trade and other receivables is considered a reasonable approximation of fair value.

 

8. Cash and cash equivalents

 


30 June

 2016

£

Unaudited

30 June

2015

£

Unaudited

31 December

 2015

£

Audited

Cash in bank and on hand

425,396

107,364

175,755

Deposit - Diamond Resources

32,826

-

-


458,222

107,364

175,755

Cash on deposit of £32,826 relates to the acquisition of Diamond Resources Limited from Tawana Resources NL (see note 17).

9. Share Based Payments

The Directors were granted share options under the share option agreements dated 19 August 2013. There were no amendments to the terms of the options granted during the period.

 

The share options held by current and former Directors as at 30 June 2016 and the exercise prices were as follows:

 

Director

Number of ordinary shares subject to share options

Tranche 1

Tranche 2

Tranche 3

Tranche 4

Number

Exercise price (pence)

Number

Exercise price (pence)

Number

Exercise price (pence)

Number

Exercise price (pence)

P. Beck

315,251

-

-

157,625

40

157,626

55

-

-

J. Kilham

472,876

157,625

14

157,625

22

157,626

40

-

-

T. Leslie

472,876

157,625

18

157,625

40

157,626

55

-

-

A. Markgraaff

372,876

57,625

18

157,625

40

157,626

55

-

-

J.Quirk

945,750

315,250

18

315,250

40

315,250

55



R. Visser

1,261,002

-

-

630,501

22

630,501

40

-

-

A. Waugh

776,091

-

-

-

-

-

-

776,091

11











Total

4,616,722

688,125


1,576,251


1,576,255


776,091


The following share options were exercised during the period to 30 June 2016:

On 12 January 2016 Andre Markgraaf exercised 100,000 share options at an exercise price of 18p per Ordinary Share.

On 12 January 2016 Rian Visser exercised 180,500 share options at an exercise price of 14p per Ordinary Share.

The following share options were granted during the period to 30 June 2016:

On 28 April 2016 776,091 share options were granted to Adam Waugh with an exercise price of 11p per Ordinary Share.

 

Movements in the number of share options outstanding and their related weighted average prices are as follows:

 


30 June 2016

31 December 2015

30 June 2015


Average exercise price in pence per share

Number of options

Average exercise price in pence per share

Number of options

Average exercise price in pence per share

Number of options

Outstanding at the beginning of the period

34

4,121,131

32

4,728,756

32

4,728,756

Granted

11

776,091

-

-

-

-

Exercised

15

280,500

15

607,625

-

-

Outstanding at the period / year end

30

4,616,722

34

4,121,131

32

4,728,756

Exercisable at the period / year end

30

 

4,616,722

34

4,121,131

32

4,728,756

 

Options are valued at date of grant using the Black-Scholes option pricing model. There was no charge recorded for the period relating to share based payments on the grounds of materiality.

 

10. Share capital and share premium issued

 


30 June

 2016

£

Unaudited

30 June

2015

£

Unaudited

31 December

2015

£

Audited

Number of Ordinary shares          

38,804,580

31,525,041

32,160,444





Ordinary share capital of 1p per share

388,046

315,250

321,604





Share premium

2,012,781

1,245,934

1,335,952






2,400,827

1,561,184

1,657,556

 

In the period ended 30 June 2016 the following Ordinary share issues occurred:

 

Date of issue

Details of issue

Number of ordinary shares

Share capital

£

Share premium

£


32,160,444

321,604

1,335,952

Exercise of Share Options

280,500

2,805

40,466

Placing and Equity Issue

6,363,636

63,637

636,363


38,804,580

388,046

2,012,781

 

 

 

11. Trade and other payables

 


30 June

 2016

£

Unaudited

30 June

2015

£

Unaudited

31 December

 2015

£

Audited

Trade payables

174,304

107,462

24,657

Accrued expenses

182,460

79,848

168,762

Corporation tax payables

-

2,943

-

Directors' current account

30,952

-

50,715


387,716

190,253

244,134

 

The carrying value of all trade and other payables is considered a reasonable approximation of fair value.

 

The accrued expenses for 2016: £182,460 (2015: £79,848, December 2015: 168,762) relate to plant development expenditure which has not been invoiced by the year end and a share of costs due for diamonds on hand which is payable to Diacar.

 

The Directors' current account 2016: £30,952 (2015: £nil, December 2015: £50,715) is made up of Directors fees and share option payments due to Riaan Visser.

12. Borrowings

 

The movement on each loan liability component can be summarised as follows:

 


Convertible loan 1

£

Convertible loan 2

£

Convertible loan 3

£

 

Total

£

Balance at 1 January 2015

255,255

-

-

255,255

Additional discounted loan notes issued

-

31,856

267,200

299,056

Finance charge: unwinding the discount factor

32,001

2,736

7,075

41,812






Balance at 31 December 2015

287,256

34,592

274,275

596,123






Balance at 1 January 2016

287,256

34,592

274,275

596,123

Finance charge: unwinding the discount factor

13,538

1,857

14,718

30,113






Balance at 30 June 2016

300,794

36,449

288,993

626,236






Equity Component

143,000

18,018

132,800

293,818

 

All convertible loan stock is repayable on the 16 October 2019 and carries a zero coupon (nil interest).

 

The loan note will be convertible:

 

·      at the note holder's option at any time up to the end of the term at a conversion price of 11 pence per ordinary share; and

·      at the Company's option after the second anniversary of initial subscription provided that the one month volume weighted average price of the Company's ordinary shares is in excess of 120% of the conversion price and the closing mid-market price on the date prior to the Company opting to convert exceeds 120% of the conversion price.

 

In addition if the Company sells its interest in its subsidiary undertaking before the final repayment date for consideration equivalent to or greater than 120% of the loan note outstanding then the notes will become redeemable and a 20% premium will be payable to the note holder.

 

 

A fair value exercise to determine the value of the three components was undertaken by the Directors at the date the convertible loan was initially drawn down.

 

The fair value of the host loan instrument (including the embedded redemption feature) been valued as the residual of:

 

a)      The fair value of the first draw down on 16 October 2014 is discounted at a commercially applicable rate of 9.25%. The fair values of the draw downs on 27 May 2016 and 2 October 2016 have been discounted at a commercially applicable rate of 10.5%.

b)      The residual amount between the transaction price of the loan and the fair value of the liability has been allocated to an equity reserve.

 

 

13. Provisions

 

Reconciliation of provisions - 2016

 

 

Rehabilitation costs

2016

Group


£

Balance at 1 January 2015

72,993

Unwinding of discount

(4,727)



Balance at 30 June 2015

68,266



Balance at 1 June 2015

68,266

Unwinding of discount

13,452



Balance at 31 December 2015

81,718



Balance at 1 January 2016

81,718

Unwinding of discount

13,345



Balance at 30 June 2016

95,063



The provision for environmental rehabilitation closure cost was independently assessed by Ndi Mudau of NDI Geological Consulting Services. The closure cost assessment reports over the Remainder of the Farm No. 113 (Skietfontein), Portion of Portion 2 (Kareeboompan) of the Farm 142, Portion 1 (Westhoek) of the Farm 113, and Portion 2 (Klipvlei) of the Farm 113. The financial provision was calculated in accordance with Regulation 54 of the Minerals and Petroleum Resources Development Act 2002 (Act 28 of 2002) and is dated 12 February 2016.

 

14. Cash used in operations


30 June

2016

£

Unaudited

30 June

2015

£

Unaudited

31 December 2015

£

Audited





Loss before taxation

(310,324)

(328,275)

(1,053,699)

Adjustments for non-cash items:




Depreciation and amortisation

79,905

40,173

110,557

Shares issued in lieu of company debt

-

-

5,000

Finance charges on convertible loan notes

30,113

34,570

35,086

Foreign exchange revaluation of fixed assets

(75,384)

45,835

93,894

Movements in provisions

13,345

(4,727)

8,725

Loss on disposal of fixed assets

7,809

-

-

Tax credit

-

-

971

Changes in working capital:




(Increase) / decrease in trade and other receivables

(34,330)

19,977

28,106

Increase in trade and other payables

143,582

129,209

131,960

Decrease / (Increase) in inventories

23,791

1,484

(27,036)


(121,493)

(61,754)

(666,436)

 

 

 

15. EPS (Earnings per share)

 


30 June

 2016

£

Unaudited

30 June

2015

£

Unaudited

31 December

 2015

£

Audited

Loss attributable to ordinary shareholders

(152,102)

(233,168)

(676,787)

Weighted average number of shares

35,009,972

31,525,041

31,787,878

Loss per share basic and diluted

(0.01)

(0.01)

(0.02)





Weighted average number of shares after dilution

35,009,972

32,220,446

31,971,978

Fully diluted earnings per share

(0.01)

(0.01)

(0.02)

 

Share options granted to directors could potentially dilute EPS in the future but are not included in a dilutive EPS calculation because they are antidilutive for the period.

 

16. Related parties

 

Details of the Director's remuneration for the period ending June 2016 were as follows:

 

During the period ending 30 June 2016, key management compensation amounted to £24,000 of which £6,000 remains outstanding to R Visser included in the Directors' current account at the period end.

 

During the period R Visser and A Markgraaf exercised their share options (see note 9) for a value of £25,270 and £18,000 respectively, which decreased the outstanding balance in the Directors current account.

 

The outstanding balance at 30 June 2016 was £30,952 (year ended 31 December 2015: £50,715, period ended 30 June 2015 £nil).

 

17. Events after the reporting period

 

Acquisition of Diamond Resources Limited

On the 1 July 2016, the Group completed the acquisition of a 100% shareholding in Diamond Resources Limited from Tawana Resources NL. The Group agreed to acquire the entire share capital of Diamond Recourses Pty Limited for a total consideration of £32,826 (ZAR 0.7m) on 29 January 2016; however the sales agreement only became effective once the final payment was received on the 1 July 2016.

Due to the timing on the final acquisition payment to Tawana Resources NL, Diamond Resources Limited has not been consolidated in the current financial period. The accounting for the acquisition has not been finalised due to the recent nature of the transaction.  The final consideration is currently shown as a cash deposit (see note 11).

This acquisition gives the group access to the mining right in respect of the Kareevlei Tenements as well as speculative exploration assets in the Northern Cape. This acquisition had been envisaged at the time of the original acquisition and as a result we now hold the rehabilitation guarantee required by the DMR directly.

 

 


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