Source - RNS
RNS Number : 3352L
NQ Minerals PLC
30 September 2016
 

NQ Minerals Plc ("NQ" or "the Company")

Interim results for the six months ended 30 June 2016

 

 

NQ Minerals PLC (ISDX: NQMI), an Australia-based exploration and mining company, today announces its interim results for the six months ended 30 June 2016.

 

Highlights:

 

NQ is focused on two exploration projects known as Ukalunda and Square Post, in North Queensland, Australia. These projects are both located in prospective mining districts that form part of the well-known Charters Towers Gold Province, where more than 20 million ounces of gold has been mined.

 

Drilling results conducted during the period along with extensive, ongoing geological evaluation have demonstrated a greatly increased gold potential at Ukalunda, in addition to the well-established, high-grade silver potential.

 

Given the encouraging drill results, the Company applied for and was granted an additional tenement at Ukalunda that increases the size of the project area by over 75% to 132 km².

 

The Company now has over 15km² of the epithermal gold prospective Drummond Basin sequence which hosts the Wirralie gold mine 25km to the south where over 1.1 million ounces of gold have been produced to date.

 

3D computer modelling of drill results combined with aeromagnetic survey results has highlighted a number of new important drill targets.

 

Australian Government approval has been granted for a further drilling program which is planned to commence in 2H 2016, towards the goal of defining resources to JORC Code standards

 

Post-Period End Highlights:

 

Mr. Roger Jackson, an Australian Geologist and Mine Developer with over 25 years of experience in Mining and Exploration in Australia was appointed to the NQ board. He has been a founding director of a number of ASX and private Mining and Exploration companies, including Ark Mines Ltd, EDMS Ltd, Augur Resources Ltd, Hillgrove Gold Mines, Hellyer Gold Mines and Red Robin Resources. While an executive with these companies he assisted in the raising of over $100 million in equity capital.

 

Mr. Allen Ambrose, a licensed Registered Professional Geologist with over three decades of exploration and mining industry experience was appointed to the NQ Board.  While an executive with junior exploration companies he raised over $180 million in equity capital in companies that discovered over $50 billion of contained metals under his direction.  Mr. Allen Ambrose is a Director and founder of Minera Andes Inc. that was combined with NYSE-listed McEwen Mining in January 2012.  Mr. Ambrose remains a key director of McEwen Mining.  

 

NQ signed an agreement with White Fox Ventures ("White Fox") for White Fox to subscribe for new shares to raise USD$2.35 million in seven tranches until 1 April 2017.  This follows from the first tranche of $150,000 investment in the Company made by White Fox as announced by the Company on 25 August 2016.

 

On 26 September 2016, NQ Minerals placed 10m ordinary shares in the Company at a price of 6 pence per share raising GBP £600,000.

 

Contact:

 

Company

 

 

 

NQ Minerals plc

 

Brian Stockbridge

+44(0) 7876 888 011

 

Corporate advisor

 

 

 

Alfred Henry Corporate Finance Limited

 

Nick Michaels / Jon Isaacs

+44 (0) 207 251 3762

 

Investor Relations

 

 

Kris Kottmeier

 

VP Corporate Development

+44 (0) 20 3637 6522

+1 (604) 506 2502

Email:  [email protected]

 

 

 

 

Non Executive-Chairman's Statement

 

I am delighted to present the results for NQ Minerals plc, for the six months ended 30 June 2016.  The Company has progressed well with its drilling program, has found a number of important new drill targets (including some new gold discoveries) and has increased its tenement area by over 75%.  The Company has also made two key director appointments as we move to the next stage of the Company's development.  Additionally, NQ has raised £600,000 and has announced the raising of $2.5m in tranches up to April 2017.

 

The appointment of additional board members will be made to assist us in advancing our various projects and we remain focused on creating long-term sustainable value for our shareholders.

 

Projects

NQ is focused on two exploration projects known as Ukalunda and Square Post, in North Queensland, Australia. These projects are both located in prospective mining districts that form part of the well-known Charters Towers Gold Province, where more than 20 million ounces of gold has been mined.

Ukalunda

The Ukalunda tenement lies midway between the Lake Dalrymple/Burdekin Dam and the historic Wirralie gold mine, which has produced 1.1 million ounces of gold to date. The Ukalunda project contains multiple zones of mineralisation that are very similar to mineralised zones discovered in mining districts around the world that host major ore bodies. This suggests that one or more major ore bodies may be present at NQ Mineral's Ukalunda property. Historical wide-ranging exploration has been carried out at the Ukalunda permit area, which discovered numerous zones rich with gold, silver and associated base metals mineralisation.

Square Post

 

The Square Post tenement lies close to the Flinders Highway, 10 kilometres north north east of Mingela and 50 kilometres south of Townsville. Square Post's permit consists of 47 sub-blocks covering an area of around 168km2 and is considered to be under-explored. Focus at Square Post is on breccia-hosted mineralisation at the Breccia Knob zone, and on quartz-vein hosted mineralisation at the Blue Doe-June Ellen zone.

 

Outlook

 

The six months to 30 June 2016 has been a very successful period for NQ Minerals. The success of the drilling program and the appointment of new experienced directors subsequent to the period end have positioned the Company very well for the next stage of its development.

 

Our short-term strategy remains at increasing value by targeted exploration and the easiest way to add value is by drilling. The Directors consider that NQ Minerals has a distinct advantage arising from the previous exploration work that has been carried out on the tenements. This has a resulted in a valuable database that will allow the team to target spending to achieve the most efficient exploration and improve the chances of success.

 

The Directors consider that 2016 and 2017 are likely to see continued news flow from both the Ukalunda and Square Post projects as exploration proceeds and the Directors will continue to evaluate other projects that will allow shareholder value to be enhanced.

 

I am very optimistic about the Group's growth potential and we look to the future with significant confidence.

 

 

 

 

 

 

 

 

NQ Minerals Plc

 

Consolidated Statement of Total Comprehensive Income

For the period to 30 June 2016

           

 

6 Months to

30 June 2016

 Unaudited

6 Months to

30 June 2015

Unaudited

12 Months to

31 Dec 2015

Audited

 

£'000s

£'000s

£'000s

 

 

 

 

Administrative expenses

(176)

(91)

(316)

Other income

2

-

6

ISDX admission costs

                       -

                           -

                  (207)

 

 

 

 

Loss before tax

(174)

(91)

(517)

 

 

 

 

Income tax charges

-

-

-

 

                       

                           

                       

Loss for the period

(174)

(91)

(517)

 

 

 

 

Other comprehensive income

119

1

(1)

 

                       

                           

                       

Total comprehensive loss for the period

(55)

(90)

(518)

 

                       

                           

                       

 

 

 

 

Attributable to:

 

 

 

 

 

 

 

- Owners of the parent

(55)

(90)

(518)

 

                       

                           

                       

 

 

 

 

Loss per share

 

 

 

 

 

 

 

From continuing operations:

 

 

 

 

 

 

 

Basic and diluted

(0.12p)

(0.07p)

(0.40p)

 

                       

                           

                       

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                                                            NQ Minerals Plc

 

Consolidated Statement of Financial Position as at 30 June 2016

 

 

As at

30 June 2016

 Unaudited

As at

30 June 2015

Unaudited

As at

31 Dec 2015

Audited

 

£'000s

£'000s

£'000s

Assets

 

 

 

 

 

 

 

Non-current assets

 

 

 

Deferred exploration and evaluation expenditure

764

162

337

 

                       

                           

                       

 

764

162

337

 

                       

                           

                       

 

 

 

 

Current assets

 

 

 

Trade and other receivables

305

46

128

Cash and cash equivalents         

8

12

617

 

                       

                           

                       

 

313

58

745

 

                       

                           

                       

 

 

 

 

Total assets

1,077

220

1,082

 

                       

                           

                       

 

 

 

 

Equity and liabilities

 

 

 

 

 

 

 

Capital and reserves

 

 

 

Issued capital

144

121

144

Share premium

1,308

-

1,308

Merger relief reserve

7,171

7,171

7,171

Group reorganisation reserve

(6,983)

(6,983)

(6,983)

Currency translation reserve

125

8

6

Accumulated deficit

(827)

(227)

(653)

 

                       

                           

                       

Total equity

938

90

993

 

                       

                           

                       

 

 

 

 

Current liabilities

 

 

 

Trade and other payables

139

130

89

 

                       

                           

                       

 

89

130

89

 

                       

                           

                       

Total equity and liabilities

1,077

220

1,082

 

                       

                           

                       

 

 

 

 

 

 

NQ Minerals Plc

Consolidated Statement of Cash Flows

 

For the period to 30 June 2016

 

 

 

6 Months to

30 June 2016

 Unaudited

6 Months to

30 June 2015

Unaudited

12 Months to

31 Dec 2015

Audited

 

£'000s

£'000s

£'000s

 

 

 

 

Operating activities

(182)

(82)

(518)

 

 

 

 

Investing activities

 

 

 

 

 

 

 

Proceeds from disposal of plant and equipment

-

16

17

Payment for exploration expenditure

(427)

(61)

(248)

 

 

 

 

Financing activities

 

 

 

Loans from related parties

-

19

-

Equity raised by a subsidiary undertaking

-

85

1331

 

                       

                           

                       

Net cash in/(out)flow

(609)

(23)

582

 

 

 

 

Cash and cash equivalents at the beginning

of the period

 

617

 

35

 

35

 

                       

                           

                       

Bank balances and cash

8

12

617

 

                       

                           

                       

 

 

 

 

 

 

Reconciliation of operating loss to net cash outflow from operating activities.

 

 

 

 

6 Months to

30 June 2016

 Unaudited

6 Months to

30 June 2015

Unaudited

12 Months to

31 Dec 2015

Audited

 

£'000s

£'000s

£'000s

 

 

 

 

Loss for the period

(174)

(91)

(517)

Adjustments for:

 

 

 

Finance income

-

-

(6)

Finance cost

Foreign exchange

Impairment

-

-

-

-

1

  -

6

23

5

Depreciation and amortisation

-

2

2

Loss on sale of fixed assets

-

8

9

Non-cash movements in reserves

119

-

155

(increase)/decrease in receivables

(127)

39

(121)

Increase/(decrease) in payables

-

(41)

(74)

 

                       

                           

                       

Net cash outflow from operating activities

(182)

(82)

(518)

 

                       

                           

                       

 

 

 

 

 

 

 

  NQ Minerals Plc

                                   

                                    Consolidated statement of changes in equity

 

For period to 30 June 2016

 

 

Share capital

Share Premium

Merger relief reserve

Accumulated deficit

Group reorganisation reserve

Currency translation reserve

Total

 

£'000s

£'000s

£'000s

£'000s

£'000s

£'000s

£'000s

 

 

 

 

 

 

 

 

As at 1 January 2015

154

-

-

(136)

-

7

25

Loss after tax

-

-

-

(91)

-

-

(91)

Currency translation reserve

-

-

-

-

-

1

1

Shares issued

155

-

-

-

-

-

155

 

 

 

 

 

 

 

 

Group reorganisation

(188)

-

7,171

-

(6,983)

-

-

 

           

           

           

           

           

           

           

Balance as at 30 June 2015

 

121

-

7,171

(227)

(6,983)

8

90

 

 

 

 

 

 

 

 

Loss after tax

 -

 -

-

(426)

-

-

(426)

Currency translation reserve

-

-

-

-

-

(2)

(2)

Shares issued

23

2,077

-

-

-

-

2,100

Share issue costs

-

(769)

-

-

-

-

(769)

 

           

           

           

           

           

           

           

Balance as at 31 Dec 2015

 

 

144

 

1,308

 

7,171

 

(653)

 

(6,983)

 

6

 

993

 

 

 

 

 

 

 

 

Loss after tax

-

-

-

(174)

-

-

(174)

Currency translation reserve

-

-

-

-

-

119

119

 

           

           

           

           

           

           

           

Balance as at 30 June 2016

 

144

 

1,308

 

7,171

 

(827)

 

(6,983)

 

125

 

938

 

           

           

           

           

           

           

           

 

 

 

 

 

 

 

 

 

 

NQ Minerals Plc

 

Notes to the Interim Financial Information

 

 

1.   General Information

 

      NQ Minerals Plc ("Company") is a public limited company incorporated in England and Wales with company number  

      09540926 and quoted on the ISDX Growth Market.

 

2.   Basis of Preparation

 

This interim report has been prepared using the historical cost convention, on a going concern basis and in accordance with International Financial Reporting Standards ("IFRS") as adopted by the European Union, using accounting policies which are consistent with those set out in the financial statements of NQ Minerals Pty Ltd for the period ended 31 December 2015. This interim financial information for the six months ended 30 June 2016 was approved by the Board on 30 September 2016.

 

The unaudited interim condensed financial statements for the six months to 30 June 2016 have been prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" and have not been reviewed by the external auditors of the group.

 

 

Exchange rates used

 

The following exchange rates were used in translating the results of NQ Minerals Pty Ltd:

 

Period

Average Rate GBP : AUD

Closing Rate GBP : AUD

6 Months to 30 June 2016

1 : 1.9547

1 : 1.7991

6 Months to 30 June 2015

1 : 1.9464

1 : 2.0525

12 Months to 31 Dec 2015

1 : 2.0306

1 : 2.0344

 

 

 

3.   Segmental Analysis

 

In the opinion of the Directors the group has one class of business, being the exploration for, and development and production of minerals and other related activities.

 

 

4.    Operating loss for the period is stated after charging

      

           

6 months to

30 June 2016

 Unaudited

6 months to

30 June 2015

Unaudited

12 Months to

31 Dec 2015

Audited

 

£'000s

£'000s

£'000s

 

 

 

 

 

 

 

 

Depreciation

-

2

2

Foreign Exchange

-

1

-

Exploration and evaluation expenditure

1

-

3

Loss on sale of fixed assets

-

8

9

 

                       

                           

                       

 

 

 

 

 

 

NQ Minerals Plc

 

Notes to the Interim Financial Information

 

 

5.    Loss per share

 

6 months to

30 June 2016

 Unaudited

6 months to

30 June 2015

Unaudited

12 Months to

31 Dec 2015

Audited

 

£'000s

£'000s

£'000s

 

 

 

 

Loss per ordinary share

 

 

 

Basic- pence

(0.12p)

(0.07p)

(0.40p)

Diluted - pence

(0.12p)

(0.07p)

(0.40p)

 

                       

                           

                       

 

 

 

 

 

The loss per ordinary share is based on the Group's loss for the period of £174,000 (30 June 2015 - £91,000: 31 December 2015 - £517,000) and a basic and diluted weighted average number of shares in issue of 144,386,909 (30 June 2015 - 121,546,000: 31 December 2015 - 130,765,481). The weighted average number of ordinary shares has been restated to reflect the total number of shares arising from the share for share exchange on acquisition and is considered to be in place from the earliest period.

 

 

6.   Ordinary Share Capital

 

 

 

Allotted, called up and fully paid

 

 

 

 

 

Issued share capital compromises:

 

 

 

 

 

6 months

 to 30 June

2016

Unaudited

6 months

 to 30 June

2015

Unaudited

12 Months to 31 December

2015

Audited

 

 

£'000s

£'000s

£'000s

 

 

 

 

 

144,386,909 Ordinary shares of 0.001p each

(30 June 2015: 121,546,000,

31 December 2015: 144,386,909)

 

144

122

144

 

 

───────

───────

───────

 

 

144

122

144

 

 

═══════

═══════

═══════

 

On 23 July 2015, 7 August 2015 and 29 December 2015 the company issued and allotted 12,500,000, 9,090,909 and 1,250,000 ordinary shares of £0.001 each.

 

 

 

 

 

NQ Minerals Plc

 

Notes to the Interim Financial Information

 

 

7.   Related-party transactions

 

    Transactions between the Group and its subsidiaries, which are related parties, have been eliminated on

    consolidation and are not disclosed in this note.

 

At the period end an amount of £195,000 was owed to the Group by W Doyle, a Director of the Company, made up of a balance of £48,000 in the Company due to W Doyle and an amount included within debtors of £243,000 in NQ Minerals Pty Ltd. These loans are interest-free, unsecured and repayable on demand and has not been offset on consolidation.

 

At the period end an amount of £25,800 was owed by the Group to B Stockbridge, a Director of the Company in respect of an interest-free current account balance which is unsecured and repayable on demand.

 

At the period end an amount of £4,000 was owed by the Group to B Smart, a Director of the Company in respect of an interest-free current account balance which is unsecured and repayable on demand.

 

 

8.   Events subsequent to 30 June 2016

          

On 25 August 2016, the Company issued 1,350,000 new shares at a price equivalent to 8.4 pence per share to raise USD $150,000.

 

9.    The unaudited results for 6 months ended 30 June 2016 do not constitute statutory accounts within the meaning of Section 434 of the Companies Act 2006. The comparative figures for the period ended 31 December 2015 are extracted from the audited financial statements of NQ Minerals Pty Ltd which contained an unqualified audit report and did not contain statements under Sections 498 to 502 of the Companies Act 2006.

 

10.  Copies of this announcement will be available for members of the public at the Company's registered office: Finsgate, 5-7 Cranwood Street, London, EC1V 9EE.


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