Source - RNS
RNS Number : 6983G
NQ Minerals PLC
31 May 2017
 



31 May 2017

NQ Minerals plc

(The "Company" or "NQ Minerals")

Final results for the period ended 31 December 2016

NQ Minerals (NEX:NQMI), an Australia-based exploration and mining company, today announces its final results for the period ended 31 December 2016.

Chairman's statement

 

2016 welcomed a reversal of the negative sentiment which has dogged the minerals exploration sector for a number of years. Our investment in our exploration assets, our efforts to add value to our existing projects and search for value adding projects, along with improved market sentiment, provides us with great confidence in our progress and the direction upon which our Group is embarking. During 2016 we agreed to acquire Keen Pacific Limited. The acquisition completed on 18 May 2017 and will see NQ Minerals wholly own the prospective Hellyer Gold Mine in Tasmania, Australia ("Hellyer"). This is in line with the Company's strategy of becoming a near-term revenue generating gold and base metal production company.

 

Projects

 

NQ is focused on three main projects being Hellyer in Tasmania which offers the prospects of significant short term cash flow, and it's two exploration projects, Ukalunda and Square Post, in North Queensland, Australia. These two exploration 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.

 

Hellyer

 

The Board and management of NQ Minerals consider that the Hellyer Gold Mine in Tasmania represents a significant permitted project for the Company with life of mine revenues exceeding AUD$1.3 bn (US$1.033bn) and a post-tax NPV estimated by management of AUD$276 m (US$210m). The capital expenditure to start the project is low at only AUD$20m and the project is expected to have a 10 year mine life. The necessary plant and equipment exists on site including a large pre-existing mill facility and full supporting infrastructure, including a direct rail line to port with port concentrate housing, handling and loading facilities.

 

NQ Minerals' acquisition of Hellyer allows the opportunity to fully process and bring the tailings to account. Held within four separate areas, the tailings total 11.24 mt, and comprise a JORC compliant resource estimated at 9.5 mt which is host to Gold at 2.61 g/t Au for 796,000 oz Au, Silver at 104 g/t Ag for 32 m oz Ag, Lead at 3.03% Pb for 287,800 tonnes and Zinc at 2.5% Zn for 237,900 tonnes.

 

Ukalunda

 

The Group continues to invest in the Ukalunda. The tenement, which lies midway between the Lake Dalrymple/Burdekin Dam and the historic Wirralie gold mine, which previously produced 1.1 million ounces of gold. The Ukalunda project area contains multiple shows of mineralisation that are the same as other mineralisation shows discovered in mining districts around the world that host major ore bodies. This suggests that a major ore body may be present in this district. Historic, wide-ranging exploration has been carried out at the Ukalunda permit area, which had discovered some areas of rich mineralisation of gold, silver and a number of associated base metals.

 

Square Post

 

Investment continues in the Square Post tenement lies close to the Flinders Highway, 10 kilometres north east of Mingela and 50 kilometres south of Townsville. The area is considered to be underexplored, principally due to its rugged terrain. The permit consists of 47 sub-blocks covering an area of around 168km2. Map to Mine has reported that the Square Post tenement is in good standing.

 

Outlook

 

The Hellyer Gold Mine will be a flagship project for NQ Minerals and is expected to see us transform into a near-term producer within a 12 month time-frame. First work will involve the refurbishment of the existing operating facilities in order to extract and treat the large high-grade tailings deposit on site and produce three marketable concentrates (lead, zinc, gold/silver/pyrite). The project is expected to be producing within a short time period and offers the potential for attractive returns with a quick payback of capital. The Board believes Hellyer is a world-class project that blends in well with our North Queensland assets and our long-term goal to become a significant gold and base metal producer in Australia. I am optimistic about the Group's growth potential and we look to the future with significant confidence.

 

 

Brian Stockbridge

Chairman

31 May 2017

 

 

Enquiries:








NQ Minerals plc

Brian Stockbridge

http://www.nqmpl.com

Tel: + 44 (0) 7876 888 011




Daniel Stewart & Company plc

Richard Potts

http://www.danielstewart.co.uk/

Tel: +44 (0) 207 776 6550




Yellow Jersey PR Limited

Felicity Winkles / Alistair de Kare-Silver

www.yellowjerseypr.com

Tel: +44 (0) 7825 916 715

 

 

 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME




FOR THE YEAR ENDED 31 DECEMBER 2016

















Year ended 31 December 2016


Period ended 31 December 2015






£'000s


£'000s









Continuing operations






Revenue




 -  


 -  









Gross Profit



 -  


 -  









Administrative expenses



(2,394)


(316)

NEX admission costs



 -  


(207)









Operating loss



 (2,394)


 (523)









Finance income



 3


 6

Loss on ordinary activities before taxation


 (2,394)


 (517)









Taxation




 -  


 -  









Loss for the period



 (2,394)


 (517)









Foreign exchange gains / (losses)



 4


 (1)

Total comprehensive loss for the period attributable to the owners of the Parent

 (2387)


 (518)

















Loss per share (pence)



 1.62


 0.40


CONSOLIDATED STATEMENT OF FINANCIAL POSITION




AS AT 31 DECEMBER 2016



















As at 31 December 2016


As at 31 December 2015






£'000s


£'000s









Assets







Non-current assets






Deferred exploration and evaluation expenditure

 899


 337

Property, plant and equipment



 -  


 -  

Deposits




 239


 -  






 1,138


 337









Current assets






Trade and other receivables



 373


 128

Cash and cash equivalents



 2,084


 617






 2,457


 745

Total assets



 3,595


 1,082









Equity and liabilities






Equity attributable to owners of the Parent





Ordinary shares



 159


 144

Share premium



 2,382


 1,308

Share option reserve



 231


 -  

Group reorganisation reserve



 (6,983)


 (6,983)

Translation reserve



 91


 6

Merger relief reserve



 7,171


 7,171

Accumulated losses



(3,040)


(653)

Total equity



 11


 993









Liabilities







Current liabilities






Trade and other payables



558


89

Financial liabilities



1926


0

Convertible notes



1100


0

Total liabilities



 3,584


 89









Total equity and liabilities



 3,595


 1,082

 

 

 

 

 

 

CONSOLIDATED STATEMENT OF CASH FLOWS




FOR THE YEAR ENDED 31 DECEMBER 2016

















Year ended 31 December 2016


Period ended 31 December 2015






£'000s


£'000s









Cash flows from operating activities


 (1,185)


(518)






  



Cash flows from investing activities


  



Payment for exploration expenditure


 (562)


(248)

Proceeds from disposal of tangible assets


 -  


17

Payment for share purchase acquisition (deposits)

 (239)


 -  

Net cash flows from investing activities


 (801)


 (231)






  



Cash flows from financing activities


  



Increase / (decrease) in borrowings



 2,364


 -  

Proceeds on issue of shares



 1,089


1,331

Net cash flows from financing activities


 3,453


1,331






  



Net increase in cash and cash equivalents


 1,467


582

Cash and cash equivalents at the brought forward

 617


35

Cash and cash equivalents carried forward

 2,084


617

 

 

 

 

 

NOTES TO THE PRELIMINARY RESULTS

FOR THE YEAR ENDED 31 DECEMBER 2016

 

1. The financial information set out above does not constitute statutory accounts for the purpose of Section 434 of the Companies Act 2006. The financial information has been extracted from the statutory accounts of NQ Minerals Plc and is presented using the same accounting policies, which have not yet been filed with the Registrar of companies, but on which the auditors gave an unqualified report on 31 May 2017.

 

The preliminary announcement of the results for the period ended 31 December 2016 was approved by the board of directors on 31 May 2017.

 

 

 

 

2. Earnings per share







 





2016


2015


 

Basic loss per share is calculated by dividing the loss attributable to equity shareholders by the weighted average number of ordinary shares in issue during the period:





 





 





 





 









 

Loss after tax attributable to equity holders of the Group

£2,391,000


£517,000


 

Weighted average number of ordinary shares

147,576,361


130,765,481


 









 

Basic and diluted loss per share


1.62p


0.40p


 









 

Diluted loss per share







 









 

Diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares outstanding to assume conversion of all dilutive potential ordinary shares. Since the Group does not have any dilutive potential ordinary shares the diluted loss per share is the same as the basic loss per share.

 

 

 

 









 

Potentially convertible shares







 









 

The Group has convertible ordinary shares on issue as at 31 December 2016 as follows:


 


- 20,508,728 convertible ordinary shares in connection with the convertible notes on issue at year end. These convertible notes have a maturity date within the next 12 months; and

 


 









 


- 8,000,000 options on issue to two directors. These are options expire in the 2021 financial year.

 


 









 

The above have not been factored into the loss per share calculation as they do not dilute current earnings per share. 

 

 

 


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