Source - RNS
RNS Number : 1797J
Starvest PLC
26 June 2017
 

26 June 2017

 

Starvest Plc

("Starvest" or "the Company")

 

Half-year report - six months ended 31 March 2017

 

Chairman's statement

A modest recovery in the mining and resources sector continued during the six month period to 31st March 2017. This improvement was reflected in our net asset value increasing from £1.16m as at 31 December 2016 to £1.24m as at 31 March 2017 and has continued to improve since period end; at the close of business on 16 June the value had increased to £1.67m or 3.34 pence per share on a discounted basis.

 

The Company continues its historic policy of investing in early stage mining resource projects, but we are also pursuing new investment areas. 

 

Several of our investee companies have achieved significant milestones in the recent past. Ariana Resources PLC (AIM:AAU) moved from being an explorer to producer early in the year targeting considerable annual gold-silver production along with a major resource upgrade. Salt Lake Potash (AIM:SO4) confirmed positive production potential from its potash operation and expansion of landholdings. Greatland Gold PLC (AIM:GGP) announced the discovery of a new gold province followed by execution of a deal with global gold giant Newmont plus exciting news from the Paterson region in Western Australia.

 

Other investee companies remain active such as Oracle Coalfields (AIM:ORCP) seeing its coal project elevated to a priority list by the local government and BMR Group (AIM:BMR) proceeding with plant construction at its lead-zinc operation. Kefi Minerals (AIM:KEFI) secured significant funding in its move toward gold production and, since the quarter end, oil and gas producer Kuwait Energy announced its intention to list on the London Stock Exchange which is likely to attract a significant valuation.

 

Whilst the recovery in the commodities market remains modest Starvest has benefitted from the increased activity and is well positioned as the sector accelerates and enters its next cycle. We continue to expect an increase in demand for energy and metals over the medium and long term, and short term improvements are already notable.  

 

During May 2017 Starvest completed a placing of stock for cash which was pleasingly oversubscribed and secured at the prevailing market price. Gross proceeds were £170,000 with the bulk to be used for expansion of the current investment portfolio where we are likely to focus on copper, gold, lithium and cobalt opportunities. Additional cash was also generated from share sales post period end without impacting our portfolio valuation. We look forward to providing further updates to investors and the market during the coming weeks.

 

Callum N. Baxter

Chairman & Chief Executive

26 June 2017

 

Income Statement

 

 

6 months to 31 March 2017

6 months to 31 March 2016

Year ended

 30 September 2016

 

Unaudited

£

Unaudited

£

Audited

£

 

Revenue

58,364

53,390

117,920

Cost of sales

(50,013)

(39,868)

(72,670)

Gross profit

8,351

13,522

45,250

Administrative expenses

(116,444)

(109,246)

(231,499)

Amounts written off against trade investments

(198,117)

(315,513)

(382,594)

Amounts written back against trade investments

160,649

304,542

643,561

Operating (loss) / profit

(145,561)

(106,695)

74,718

Interest receivable

2,737

2,941

6,395

(Loss) / profit on ordinary activities before tax

(142,824)

(103,754)

81,113

Tax on profit on ordinary activities

-

-

-

(Loss) / profit attributable to Equity holders of the Company

(142,824)

(103,754)

81,113

 

 

 

 

(Loss) / earnings per share - see note 3

Basic and diluted

 

 

(0.34) pence

 

 

(0.27) pence

 

 

0.21 pence

 

 

 

Statement of Financial Position

 

 

 

6 months ended 31 March 2017

6 months ended 31 March 2016

Year ended

 30 September 2016

 

 

Unaudited

£

Unaudited

£

Audited

£

Current assets

Trade and other receivables

Trade investments

Cash and cash equivalents

 

 

 

 

57,540

1,285,429

8,084

 

62,544

1,035,703

160,759

 

71,667

1,372,616

9,856

Total current assets

 

1,351,053

1,259,006

1,454,139

 

 

 

 

 

Current liabilities

Trade and other payables

 

 

(91,465)

 

(154,961)

 

(132,227)

Total current liabilities

 

(91,465)

(154,961)

(132,227)

 

 

 

 

 

Net current assets

 

1,259,588

1,104,045

1,321,912

 

Capital and reserves

Called up share capital

Share premium account

Profit and loss account

Equity reserve

 

 

 

436,435

1,554,923

(736,770)

5,000

 

 

337,301

1,540,556

(778,812)

5,000

 

 

396,185

1,514,673

(593,946)

5,000

Total equity shareholders' funds

 

1,259,588

1,104,045

1,321,912

           

 

 

Statement of Cash Flows

 

 

 

6 months ended 31 March 2017

6 months ended 31 March 2016

Year ended

 30 September 2016

 

 

Unaudited

£

Unaudited

£

Audited

£

 

 

 

 

 

Cash flows from operating activities

 

 

 

 

Operating (loss)/profit

 

(145,561)

(106,695)

74,718

Net interest receivable

 

2,737

2,941

6,395

Share based payment charge

 

80,500

16,500

49,500

Increase/(decrease) in debtors

 

14,127

(7,505)

(16,627)

(Decrease)/increase in creditors

 

(40,762)

29,807

7,072

Net cash used in operating activities

 

(88,959)

(64,952)

121,058

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

Purchase of current asset investments

 

-

(53,125)

(140,390)

Sale of current asset investments

 

58,070

53,069

117,300

Loan converted into shares

 

-

-

(10,000)

Profit on sale of current asset investments

 

(8,351)

(13,522)

(45,463)

Increase in investment provisions

 

198,117

315,513

382,594

Decrease in investment provisions

 

(160,649)

(304,542)

(643,561)

Net cash used in investing activities

 

87,187

(2,607)

(339,520)

 

 

 

 

 

Net (decrease) in cash and cash equivalents

 

(1,772)

(67,559)

(218,462)

Cash and cash equivalents at beginning of period

 

9,856

228,318

228,318

Cash and cash equivalents and end of period

 

8,084

160,759

9,856

 

 

 

 

 

           

 

 

 

 

Statement of Changes in Equity

 

Share capital

Share premium

 

Profit and loss account

Total Equity attributable to shareholders

 

Equity reserve

 

£

£

£

£

£

At 30 September 2015 (restated)

394,173

2,118,396

5,000

(1,326,270)

1,191,299

 

 

 

 

 

 

(Loss)/profit for the period

-

-

-

(103,754)

(103,754)

Total recognised income and expenses for the period

-

-

 

-

(103,754)

(103,754)

 

 

 

 

 

 

Shares issued

8,250

8,250

-

-

16,500

Cancellation of treasury shares

(65,122)

(586,090)

-

651,212

-

Total contribution by and distributions to owners

(56,872)

(577,840)

 

-

651,212

16,500

 

 

 

 

 

 

At 31 March 2016

337,301

1,540,556

5,000

(778,812)

1,104,045

 

 

 

 

 

 

At 30 September 2016

396,185

1,514,673

5,000

(593,946)

1,321,912

 

 

 

 

 

 

(Loss)/profit for the period

-

-

-

(142,824)

(142,824)

Total recognised income and expenses for the period

-

-

-

(142,824)

(142,824)

 

 

 

 

 

 

Shares issued

40,250

40,250

-

-

80,500

Total contributions by and distributions to owners

40,250

40,250

-

-

80,500

 

 

 

 

 

 

At 31 March 2017

436,435

1,554,923

5,000

(736,770)

1,259,588

 

During the period 1,525,000 shares were issued to directors in lieu of fees for the period 30 September 2016 and 31 December 2016 respectively.

 

On 5 January 2017 2,500,000 shares were issued to Mr Bruce Rowan in part settlement of the loan he provided to the Company.

 

Interim report notes

 

1.   Interim report

The information relating to the six month periods to 31 March 2017 and 31 March 2016 is unaudited. 

The information relating to the year ended 30 September 2016 is extracted from the audited accounts of the Company which have been filed at Companies House and on which the auditors issued an unqualified audit report.

2.   Basis of preparation

This report has been prepared in accordance with applicable United Kingdom accounting standards, including Financial Reporting Standard 102 - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' ('FRS102'), and with the Companies Act 2006. Although the information included herein does not constitute statutory accounts within the meaning of section 435 of the Companies Act 2006, the accounting policies that have been applied are consistent with those adopted for the statutory accounts for the year ended 30 September 2016.

The financial statements for the year ended 30 September 2016 were prepared in accordance with FRS 102 which included comparatives for the year ended 30 September 2015 being re-stated in accordance with FRS 102 and a reconciliation between the old and new GAAP was included in the notes. Refer to the financial statements for the year ended 30 September 2016 for an explanation of the transition.

The Company will report again for the full year to 30 September 2017.

The Company's investments at 31 March 2017 are valued at the lower of cost or the valuation adopted at 30 September 2016 or the current market value based on bid prices at the close of business. The Chairman's statement includes a valuation based on bid prices at 31 March 2017.

3.   Loss per share

 

 

6 months ended 31 March 2017

6 months ended 31 March 2016

Year ended

 30 September 2016

 

 

Unaudited

£

Unaudited

£

Audited

£

 

 

 

 

 

These have been calculated on a (loss)/profit of:

(142,824)

(103,754)

81,113

 

The weighted average number of shares used was:

 

41,816,935

 

38,341,234

 

38,876,323

 

Basic (loss)/earnings per share:

 

 

(0.34) pence

 

(0.27) pence

 

0.21 pence

           

 

 

Investment portfolio

Starvest now holds trade investments in the companies listed below; of these the following companies comprised 89% of the portfolio value as at 31 March 2017:

·      Alba Mineral Resources plc

Exploration for oil in England, lead-zinc in Ireland, uranium in Mauritania and graphite in Greenland www.albamineralresources.com

·      Ariana Resources plc

Gold-silver production and exploration in Turkey

www.arianaresources.com

·      BMR Group plc

Lead and zinc in Zambia

www.bmrplc.com

·      Greatland Gold plc

Gold exploration in Australia

www.greatlandgold.com

·      Kefi Minerals plc

Gold and copper exploration in Ethiopia and Saudi Arabia

www.kefi-minerals.com

·      Kuwait Energy plc

Oil exploration and operations in Middle East and North Africa

www.kec.com

·      Oracle Coalfields plc

Coal mining in Pakistan

www.oraclecoalfields.com

Other direct and indirect mineral exploration companies:

 

·      Block Energy plc (formerly Goldcrest Resources plc)

Oil and gas exploration in Bulgaria

www.goldcrestresourcesplc.com

·      Marechale Capital plc

Investment banking and corporate finance www.marechalecapital.com

·      Minera IRL Limited

Gold exploration in South America

www.minera-irl.com 

·      Regency Mines plc

Copper & nickel exploration in Australia and Papua New Guinea and investments in Red Rock Resources plc, and Direct Nickel Limited

www.regency-mines.com

·      Salt Lake Potash Limited

Potash in Australia

www.saltlaketpotash.com.au 

·      Sunrise Resources plc

Exploration for industrial minerals in United States, Finland, Australia and Ireland

www.sunriseresourcesplc.com

Other investee companies are listed in the Company's 2016 annual report available on request as below or downloaded from www.starvest.co.uk.

Copies of this interim report are available free of charge by application in writing to the Company Secretary at the Company's registered office, 55 Gower Street, London WC1E 6HQ, by email to [email protected] or from the Company's website at www.starvest.co.uk.

 

 

 

Enquiries to:

 

Starvest PLC

Callum Baxter, Chairman/CEO 07922 255 933  [email protected]

John Watkins, Finance Director 07768 512 404  [email protected]

 

Grant Thornton UK LLP (Nomad)

Colin Aaronson or Harrison Clarke 02073 835 100

 

SI Capital Ltd (Appointed Broker)

Nick Emerson or Andy Thacker 01483 413 500

 


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