Source - LSE Regulatory
RNS Number : 9817L
Starvest PLC
18 May 2022
 

18 May 2022

 

Half-year report - six months ended 31 March 2022

 

Chairman's statement

 

Over the six months to 31 March 2022, Starvest (the "Company") benefited somewhat from the resilience of the natural resources sector against a backdrop of emerging inflation and global unrest due to the conflict in eastern Europe. Nonetheless, weakness in Greatland Gold's share price resulted in a decline in portfolio value and net asset value of 17% and 16%, respectively, over the six months to 31 March 2022, since the Company's financial year-end.

 

Our discount to net asset value remained consistent over the six-month period to 31 March 2022, being 34% on 30 September 2021 and 33% on 31 March 2022, while commodity prices, including gold have in general, remained relatively high, providing a solid foundation for our investee companies.

 

While many sectors have not yet recovered to pre-pandemic levels, the natural resources sector has made significant gains and is forecast to continue to do so in an economic recovery. We also expect large-scale infrastructure and climate-focused projects, at the forefront of government spending plans, will benefit the natural resource sector.

 

As part of routine operations, the Board regularly reviews its portfolio positions and may make adjustments to its holdings to take advantage of market conditions. The Board is currently considering opportunities more likely to better align the Company's stock price with what it regards as the intrinsic value of the Company's portfolio.

 

Continuing to advance its Paterson projects, Greatland Gold (LON:GGP), which makes up over 90% of our portfolio value, estimated its Havieron project at 6.5 Moz gold equivalent in an updated JORC compliant report. Its joint venture partner Newcrest Mining is continuing with mine development and growth drilling at Havieron, while Greatland Gold concentrates on early-stage exploration targets within its other licences.

 

Ariana Resources (LON:AAU) continues to focus on exploration in south-eastern Europe with a five-year, US$2.5 million strategic alliance recently announced with Newmont Corporation through Ariana's 75%-owned West Tethyan Resources, along with gold and silver production from its mining operations in Turkey.

 

Cora Gold (LON:CORA) has completed field work on a definitive feasibility study for its flagship Sanankoro gold project, the full report is due for completion in H2 2022. Cora has also started a 7,500m drill programme to continue expansion of the resource at the Sanankoro project.

 

Kefi Minerals (LON:KEFI) continues with construction of the Tulu Kapi gold mine in Ethiopia and remains on target to start full production in 2022. Kefi has also made significant advances in its exploration and resource calculations of the Jabil Qitman and Hawiah project in Saudi Arabia.

 

Other investee companies continue their efforts as well. Oracle Power (LON:ORCP) has continued its exploration in Western Australia as well as expanding into the green energy sectors with a new hydrogen energy project in Pakistan.

 

Sunrise Resources (LON:SRES) is advancing its pozzolan-perlite project in Nevada, USA towards mine permitting, while Alba (LON:ALBA) is continuing the development of its Welsh gold deposits.

 

Despite the inevitable increase in global interest rates to stem inflationary pressures, we believe that the effects of expansionary monetary policies, continued fiscal stimulus and geopolitical tensions favour a positive outlook for gold and precious metals in the longer term.

 

 

Callum N Baxter

Chairman & Chief Executive

18 May 2022



 Statement of Comprehensive Income

 

 

6 months to 31 March 2022

6 months to 31 March 2021

Year ended

 30 September 2021


Unaudited

£

Unaudited

£

Audited

£

 

Administrative expenses

(155,472)

(147,689)

(290,993)

(Loss)/gain on disposal of financial assets

(29,383)

19,313

19,339

Movement in fair value of financial assets through profit and loss

(2,195,966)

(1,088,092)

(3,645,360)

Investment income

29,628

-

56,000

Operating profit

(2,351,193)

(1,216,468)

(3,861,014)

Interest receivable

-

-

-

Profit on ordinary activities before tax

(2,351,193)

(1,216,468)

(3,861,014)

Tax on (loss) ordinary activities

587,798

-

332,532

(Loss) attributable to equity holders of the parent

(1,763,395)

(1,216,468)

(3,528,482)





Earnings per share - see note 3

Basic

Diluted

 

(3.04 pence)

(3.04 pence)

 

(2.11 pence)

(2.11 pence)

 

(6.11 pence)

(6.11 pence)

 



Statement of Financial Position

 

 

 

6 months ended 31 March 2022

6 months ended 31 March 2021

Year ended

 30 September 2021



Unaudited

£

Unaudited

£

Audited

£



 

 

 

Non-current assets

 

 

 

 

Financial assets at fair value through profit or loss

 

11,625,035

16,596,261

14,038,887

Total non-current assets

 

11,625,035

16,596,261

14,038,887



 

 

 

Current assets

Trade and other receivables

Cash and cash equivalents

 

 

 

 

53,615

157,715

 

29,893

125,344

 

63,539

78,276

Total current assets


211,330

155,237

141,815

 


 



Current liabilities

Trade and other payables


 

(70,636)

 

(84,716)

 

(85,627)

Total current liabilities

 

(70,636)

(84,716)

(85,627)

 


 



Non-current liabilities


 



Provision for deferred tax


(1,083,288)

(2,003,618)

(1,671,086)

Total non-current liabilities


(1,083,288)

(2,003,618)

(1,671,086)

 


 



Net assets


10,682,441

14,663,164

12,423,989

 

Capital and reserves

Called up share capital

Share premium account

Retained earnings


 

 

581,144

1,868,696

8,232,601

 

 

575,740

1,779,414

12,308,010

 

 

579,820

1,848,173

9,995,996

Total equity shareholders' funds


10,682,441

14,663,164

12,423,989







 



Statement of Cash Flows

 

 

 

6 months ended 31 March 2022

6 months ended 31 March 2021

Year ended

 30 September 2021



Unaudited

£

Unaudited

£

Audited

£



 



Cash flows from operating activities


 



Operating loss


(2,351,192)

(1,216,468)

(3,861,014)

Shares issued in settlement of salaries and fees


21,847

-

72,839

Movement in fair value of investments


2,195,966

1,088,092

3,645,360

(Loss)/profit on sale of current asset investments


29,383

(19,313)

(19,339)

Decrease/(increase) in debtors


9,923

1,154

(32,493)

(Decrease) in creditors


(14,991)

(8,499)

(7,587)

Net cash used in operating activities


(109,064)

(155,034)

(202,234)



 



Cash flows from investing activities


 



Sale of current asset investments


188,503

160,013

160,145

Net cash generated from investing activities


188,503

160,013

160,145



 



Net increase in cash and cash equivalents


79,439

4,979

(42,089)

Cash and cash equivalents at beginning of period


78,276

120,365

120,365

Cash and cash equivalents at end of period


157,716

125,344

78,276



 









 



 

Statement of Changes in Equity


Share capital

Share premium

Retained earnings

Total Equity attributable to shareholders





£

£

£

£


At 30 September 2020

575,740

1,779,414

13,524,478

15,879,632








Loss for the period

-

-

(1,216,468)

(1,216,468)


Total recognised income and expenses for the period

-

-

(1,216,468)

(1,216,468)








Shares issued

-

-

-

-


Total contribution by and distributions to owners

-

-

-

-








At 31 March 2021

575,740

1,779,414

12,308,010

14,663,164








Loss for the period

-

-

(3,528,482)

(3,528,482)


Total recognised income and expenses for the period

-

-

(3,528,482)

(3,528,482)








Shares issued

4,080

68,759

-

72,839


Total contribution by and distributions to owners

4,080

68,759

-

72,839








At 30 September 2021

579,820

1,848,173

9,995,996

12,423,989








Loss for the period

-

-

(1,763,395)

(1,763,395)


Total recognised income and expenses for the period

-

-

(1,763,395)

(1,763,395)








Shares issued

1,324

20,523

-

21,847


Total contributions by and distributions to owners

1,324

20,523

-

21,847








At 31 March 2022

581,144

1,868,696

8,232,601

10,682,441


 



Interim report notes

 

1.   Interim report

The information relating to the six-month periods to 31 March 2022 and 31 March 2021 is unaudited. 

2.   Basis of preparation

The Company will report again for the full year to 30 September 2022.

3.   Earnings per share

 

 

6 months ended 31 March 2022

6 months ended 31 March 2021

Year ended

 30 September 2021



Unaudited

£

Unaudited

£

Audited

£



 



Loss for the year:

(1,763,395)

(1,216,468)

(3,528,482)

 

Weighted average number of Ordinary shares of £0.01 in issue

 

58,080,245

 

57,573,986

 

57,755,713

 

Earnings per share - basic and diluted

 

(3.04 pence)

 

(2.11 pence)

 

(6.11 pence)







 


Investment portfolio

Starvest now holds trade investments in the companies listed below; of these the following companies comprised 99% of the portfolio value as at 31 March 2022:

 

·      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, and precious metal exploration in Eastern Europe

www.arianaresources.com

·      Cora Gold Limited

Gold exploration in West Africa

www.coragold.com

 

·      Greatland Gold plc

Gold exploration and development in Australia

www.greatlandgold.com

·      Kefi Minerals plc

Gold and copper exploration and development in Ethiopia and Saudi Arabia

www.kefi-minerals.com

·      iOracle Power plc

Coal development in Pakistan and gold exploration in Australia

www.oraclepower.co.uk

Other direct and indirect mineral exploration companies:

 

·      Block Energy plc (formerly Goldcrest Resources plc)

Oil and gas exploration in Bulgaria

www.blockenergy.co.uk



·      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 2021 annual report available on request or from the Company web site - 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, Salisbury House, London Wall, London EC2M 5PS, by email to info@starvest.co.uk or from the Company's website - www.starvest.co.uk

 

Enquiries to:

Starvest PLC

Callum Baxter or Gemma Cryan 02077 696 876 or info@starvest.co.uk

Grant Thornton UK LLP (Nomad)

Colin Aaronson, Harrison Clarke or Ciara Donnelly 02073 835 100

SI Capital Ltd (Broker)

Nick Emerson or Alan Gunn 01483 413 500

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