Source - RNS
RNS Number : 1447L
Tri-Star Resources PLC
29 September 2016
 

 

 

TRI-STAR RESOURCES PLC

("Tri-Star" or the "Company")

 

Interim Results for the six month period ended 30 June 2016

 

Tri-Star (AIM: TSTR), the integrated antimony development company, is pleased to announce results for the six months ended 30 June 2016.  

 

Results for the Interim Period

 

Following the successful implementation of restructuring initiatives undertaken in the latter part of 2015 and the first half of 2016, Tri-Star is pleased to report a significantly reduced operating loss for the six months to 30 June 2016 of £485,000 (2015: £1,083,000).  Total comprehensive loss amounts to £931,000 (2015: £1,924,000).

 

Administration and exploration expenses have been cut by 55% in the first half to £478,000 (2015: £1,072,000).

 

Business Review

 

Activity during the first half has focussed on the continued development of the Oman Antimony Roaster Project ("OAR").  The OAR is being developed by Strategic & Precious Metals Processing LLC ("SPMP"), an Omani company.  The OAR is being built by SPMP in Sohar, Oman.  Tri-Star has a 40% interest in SPMP.

 

The OAR has continued to show good progress in 2016.  SPMP's most notable developments announced to date include: the strengthening of its management team, confirmation that the project is now entering the procurement and implementation phase, and the strategically important and exciting inclusion of a revenue-enhancing gold plant within the overall specification for the facility. 

 

Tri-Star will continue to keep the market updated with developments in relation to this crucial project.

 

Market Abuse Regulations

 

Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.

 

Enquiries:

Tri-Star Resources plc                                                                                    Tel: +44 (0) 20 3470 0470

Guy Eastaugh, Chief Executive Officer                                                  

 

SP Angel Corporate Finance (Nomad and Broker)                             Tel: +44 (0) 20 3470 0470

Robert Wooldridge / Jeff Keating

 

Yellow Jersey PR Limited (Media Relations)                                       Tel: +44 (0) 7825 916 715

Dominic Barretto / Alistair de Kare-Silver

 

 

TRI-STAR RESOURCES PLC

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE SIX MONTHS ENDED 30 JUNE 2016

 

Notes

Unaudited Period ended 30 June 2016


Unaudited Period ended 30 June 2015



£'000


£'000






Share based payment charge


(5)


(11)

Exploration expenditure and other administrative expenses


(478)


(1,072)

Amortisation of intangibles


(2)

-

Total administrative expenses and loss from operations


(485)

(1,083)




Share of loss in associated companies


(305)

(93)




Finance income


848

180

Finance cost


(990)

(638)

Loss before taxation


(932)

(1,634)




Taxation

4

-

-




Loss after taxation, and loss attributable to the equity holders of the Company


(932)

(1,634)






Loss before and after taxation attributable to




Non-controlling interest


-


(3)


(932)


(1,631)






Other comprehensive (expenditure)/income




Items that will be reclassified subsequently to profit and loss




Exchange differences on translating foreign operations


1


(290)






Other comprehensive (expenditure)/income for the period, net of tax


1


(290)





Total comprehensive loss for the year, attributable to owners of the Company


(931)


(1,924)






Total comprehensive loss attributable to




Non-controlling interest


-


(3)


(931)


(1,921)





Loss per share





Basic and diluted loss per share (pence)

5

(0.01)


(0.02)

 

 

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AT 30 JUNE 2016

 


 30 June 2016

(Unaudited)


31 December 2015

(Audited)





Assets

Notes

£'000


£'000





Non-current





20


-


1,947


2,252


57


62


2,024


2,314

Current





580


1,308


59


148

Total current assets


639


1,456




Total assets


2,663


3,770





Liabilities




Current





49


373

6

253


1,100

Total current liabilities


302


1,473





Liabilities due after one year




6

9,309


8,318


176


176

Total liabilities


9,787


9,967




Equity





2,601


2,601


14,519


14,515


1,074


1,074


(6,156)


(6,156)


(757)


(758)

(18,402)


(17,470)


(7,121)


(6,194)




(3)


(3)

Total equity

(7,124)


(6,197)

Total equity and liabilities

2,663


3,770



 

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE SIX MONTHS ENDED 30 JUNE 2016 

 


Unaudited Period ended


Unaudited Period ended

30 June 2016


30 June 2015

£'000


£'000

Cash flows from operating activities





(932)


(1,634)

2


-

10


10

(1)


(1)

991


638

305


93

5


11

-


11

(847)


(178)

97


(3)

(368)


(68)

Net cash outflow from operating activities


(738)


(1,121)






Cash flows from investing activities





(2)


(15)

(22)


-

-


(27)

1


1

Net cash outflow from investing activities


(23)


(41)






Net (decrease) in cash and cash equivalents


(761)


(1,162)

Cash and cash equivalents at beginning of period


1,308


1,496

Exchange differences on cash and cash equivalents


33


(7)

Cash and cash equivalents at end of period


580


327

 

 

 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE SIX MONTHS ENDED 30 JUNE 2016

 


Share capital

Share premium account

Other reserves

Share-based payment reserve

Translation reserve

Retained earnings

Total attributable to owners of parent

Non-controlling interest

Total equity


£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000











Balance at 1 January 2015 (audited)

2,525

13,179

(6,156)

767

(256)

(10,140)

(81)

(235)

(316)

Issue of share capital

-

11

-

-

-

-

11

-

11

Share based payments

-

-

-

11

-

-

11

-

11

Transactions with owners

            -  

               11

                -  

              11

 -

 -

                     22

 -

                     22

Loss for the period

-

-

-

-

-

(1,631)

(1,631)

(3)

(1,634)

Exchange difference on translation of foreign operations

-

-

-

-

(290)

-

(290)

-

(290)

Total comprehensive loss for the period

 -

 -

 -

 -

(290)

(1,631)

(1,921)

(3)

(1,924)

Balance at 30 June 2015 (unaudited)

2,525

13,190

(6,156)

778

(546)

(11,771)

(1,980)

(238)

(2,218)

Issue of share capital

76

1,438

-

-

-

-

1,514

-

1,514

Share issue costs

-

(113)

-

-

-

-

(113)

-

(113)

Share based payments

-

-

-

326

-

-

326

-

326

Transfer on lapse of warrants

-

-

-

(30)

-

30

-

-

-

Transactions with owners

         76

        1,325

                -  

296

                      -  

               30

             1,727

 -

              1,727

Loss for the period

-

-

-

-

-

(5,729)

(5,729)

235

(5,494)

Exchange difference on translation of foreign operations

-

-

-

-

(212)

-

(212)

-

(212)

Total comprehensive loss for the period

 -

 -

 -

 -

(212)

(5,729)

(5,941)

235

(5,706)

Balance at 31 December 2015 (audited)

2,601

14,515

(6,156)

1,074

(758)

(17,470)

(6,194)

(3)

(6,197)

Issue of share capital

-

4

-

-

-

-

4

-

4

Share based payments

-

-

-

-

-

-

-

-

-

Transactions with owners

            -  

                  4

 -

-

 -

 -

                        4

 -

                        4

Loss for the period

-

-

-

-

-

(932)

(932)

-

(932)

Exchange difference on translation of foreign operations

-

-

-

-

1

-

1

-

1

Total comprehensive loss for the period

            -  

                  -  

                -  

 -

1

(932)

(931)

-

(931)

Balance at 30 June 2016 (unaudited)

2,601

14,519

(6,156)

1,074

(757)

(18,402)

(7,121)

(3)

(7,124)

 

 

 

 

NOTES TO THE INTERIM REPORT

FOR THE SIX MONTHS ENDED 30 JUNE 2016

 

1. GENERAL INFORMATION

 

The financial information set out in this interim report does not constitute statutory accounts as defined in Section 434 of the Companies Act 2006.  The statutory financial statements of the Company and its subsidiaries (the "Group") for the year ended 31 December 2015 have been completed and filed at Companies House.  The auditor's report on the annual financial statements was unqualified and did not contain statements under section 498(2) or section 498(3) of the Companies Act 2006.

 

2. ACCOUNTING POLICIES

 

BASIS OF PREPARATION

 

The Company's ordinary shares are quoted on the AIM market of the London Stock Exchange and the Company applies the Companies Act 2006 when preparing its annual financial statements.

 

The annual financial statements for the year ended 31 December 2016 will be prepared under International Financial Reporting Standards as adopted by the European Union (IFRS) and the principal accounting policies adopted remain unchanged from those adopted in preparing its financial statements for the year ended 31 December 2015.

 

The accounting policies have been applied consistently throughout the Group for the purposes of preparation of these condensed consolidated interim financial statements.

 

GOING CONCERN

 

The Directors have prepared cash flow forecasts for the period ending 30 September 2017.  The forecasts identify unavoidable third party running costs of the Group and demonstrate that the Group will have sufficient cash resources available to allow it to continue in business for a period of at least twelve months from the date of approval of these interim financial statements.  Accordingly, the accounts have been prepared on a going concern basis.  The forecasts assume receipt of the US$ 2million contingent asset referred to in Note 7 of these interim financial statements.

 

3. SEGMENTAL REPORTING

 

An operating segment is a distinguishable component of the Group that engages in business activities from which it may earn revenues and incur expenses, whose operating results are regularly reviewed by the Group's chief operating decision maker to make decisions about the allocation of resources and assessment of performance and about which discrete financial information is available.  The chief operating decision maker has defined that the Group's only reportable operating segment during the period is mining.

 

The Group has not generated any revenues from external customers during the period.

 

In respect of the non-current assets as at 30 June 2016 of £2,024,000, £35,000 arise in the UK (30 June 2015: £48,000, 31 December 2015: £41,000), and £1,989,000 arise in the rest of the world (30 June 2015: £4,467,000, 31 December 2015: £2,273,000).

 

 

 

4. TAXATION

 

Unrelieved tax losses of approximately £15.30 million as at 30 June 2016 (30 June 2015: £9.61 million, 31 December 2015: £14.92) remain available to offset against future taxable trading profits.  The unprovided deferred tax asset at 30 June 2016 is £3,447,000 (30 June 2015: £2,197,000, 31 December 2015: £3,269,000) which has not been provided on the grounds that it is uncertain when taxable profits will be generated by the Group to utilise those losses.

 

5. LOSS PER SHARE

 

The calculation of the basic loss per share is based on the loss attributable to ordinary shareholders divided by the weighted average number of shares in issue during the period.

 


Unaudited


Unaudited


six months ended


six months ended


30 June 2016


30 June 2015


£'000


£'000



(932)


(1,634)




         8,461,899,843


         6,944,959,686




Basic and diluted loss per share (pence)

(0.01)


(0.02)

 

Diluted earnings per share is the same as basic loss per share in each year because the potential shares arising under the share option scheme, share warrants and convertible bonds are anti-dilutive.

 

The weighted average number of ordinary shares excludes deferred shares which have no voting rights and no entitlement to a dividend.

 

6. CONVERTIBLE SECURED LOAN NOTES

 

The Company has issued three tranches of convertible secured loan notes ("Notes") to Odey European Inc. ("OEI").  The Notes carry a non-cash coupon of 15% per annum which compounds half yearly and are secured by way of a guarantee and debenture granted by Tri-Star Antimony Canada Inc.  The Notes are redeemable at 100% of their principal amount plus accrued interest by way of the issue of new Tri-Star Resources plc ordinary shares on 19 June 2018 (unless otherwise previously so converted).

 

On 19 June 2013, Tri-Star made the initial issuance of £4.0 million of Notes to OEI (the "2013 Notes").  These Notes were drawn down in two tranches of £1.33 million on 20 June 2013 and of £2.67 million on 27 September 2013. 

 

On 27 August 2014, Tri-Star issued additional £2.0 million of Notes to OEI under the same terms as in 2013 (the "2014 Notes").  On 11 August 2015, Tri-Star issued a further £2.0 million of Notes, again, under the same terms (the "2015 Notes").

 

The conversion price is fixed at £0.0020.  On maturity in June 2018, if a conversion notice has not been served previously, the Notes will convert into new Tri-Star ordinary shares at the conversion price of £0.0020.  Up to maturity, OEI has the option to serve a conversion notice (at the conversion price) at any time.  If the conversion of Notes in the period to maturity results in OEI holding more than 29.9% of the Company's enlarged voting share capital, OEI has the option of either continuing to hold those notes the conversion of which would increase its holding of shares above 29.9% or otherwise to have those notes redeemed in cash.

 

The Directors consider that the use of the Black-Scholes model is the most appropriate method of valuing the derivative component of the Notes.  The following assumptions were used in calculating the fair value:

-     the option to convert the Notes into equity will be exercised on 31 December 2016

-     share price volatility for a Tri-Star Resources plc share of 117%, which is based on historic volatility

-     conversion price of £0.0020

-     Tri-Star Resources plc share price of £0.0009

-     the effects of potential dilution have been ignored

 

The carrying value of the host debt component of the Notes at 30 June 2016 amounted to £9,309,000 (31 December 2015: £8,318,000; 30 June 2015: £5,711,000).  The increase in fair value in the six month period, amounting to £991,000, has been recorded in finance cost in the Consolidated Statement of Comprehensive Income for the period ended 30 June 2016 (30 June 2015: £638,000).

 

The conversion option is an embedded derivative treated as a liability at fair value through profit and loss.  At 30 June 2016 the fair value of the embedded derivative, calculated using the Black-Scholes option valuation model, was £253,000 (31 December 2015: £1,100,000; 30 June 2015: £448,000).  The decrease in fair value in the six month period, amounting to £847,000, has been recorded in finance income in the Consolidated Statement of Comprehensive Income for the period ended 30 June 2016 (30 June 2015: £178,000). 

 

The Notes are recorded in the Consolidated Statement of Financial Position as follows:

 

Carrying value of host debt instrument

At 30 June  2016

Profit and loss movement

At 31 December 2015

At 30 June 2015

Profit and loss movement

At 31 December 2014

£'000

£'000

£'000

£'000

£'000

£'000

(4,862)

(582)

(4,280)

(3,748)

(459)

(3,289)

(2,380)

(218)

(2,162)

(1,963)

(179)

(1,784)

(2,067)

(191)

(1,876)

-

-

-

TOTAL

(9,309)

(991)

(8,318)

(5,711)

(638)

(5,073)

Fair value of derivative

At 30 June 2016

Profit and loss movement

At 31 December 2015

At 30 June 2015

Profit and loss movement

At 31 December 2014

£'000

£'000

£'000

£'000

£'000

£'000

(140)

468

(608)

(313)

124

(437)

(60)

203

(263)

(135)

54

(189)

(53)

176

(229)

-

-

-

TOTAL

(253)

847

(1,100)

(448)

178

(626)

 

 

7. CONTINGENT ASSET

 

Under the agreement to sell the Roaster intellectual property to SPMP, there remains a balance of US$ 2million to be paid to Tri-Star by SPMP.  This payment is contingent upon the successful completion of a pilot plant and has not been recognised as an asset in the financial statements.


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