TIDMAYM
Anglesey Mining plc
Half yearly report for the six months to 30 September 2018
Chairman's Statement and Management Report
In our most recent Annual Report to shareholders, issued in July, I commented
that metal prices had softened somewhat during 2018 but that there was a strong
expectation of a continued positive outlook for base metals, particularly for
zinc and copper. Despite the current geopolitical uncertainty caused by fears
of trade wars and tariffs, that general prognosis still holds and we continue
to maintain a positive outlook for all these metals.
The recently announced Project Development and Cooperation Agreement entered
into with QME Mining Technical Services, a division of QME Ltd, ("QME") is a
very important and positive step forward in the advancement of the Parys
Mountain copper, zinc, lead, gold and silver project, located on the island of
Anglesey in North Wales. (See Anglesey Mining plc News release 26 November
2018).
QME is experienced in underground mine development and has developed and
recruited the necessary skills in mine planning to deliver local and relevant
mining expertise to assist Anglesey to progress the Parys Mountain project at
no direct cash cost to Anglesey or dilution of its shareholders.
Under the Agreement, QME will, at its own cost, carry out an agreed programme
of design, engineering and optimisation studies relating to the future
development of Parys Mountain. This will enable Anglesey to complete this work
without additional cash commitment.
Anglesey has granted QME various rights relating to the future development of
Parys Mountain. On completion of the optimisation study Anglesey will award
QME, on an exclusive basis, contracts for the development of the decline and
underground mine development, including rehabilitation of the shaft, and in
addition, will grant QME the right and option, upon completion of a
Prefeasibility Study, to undertake at QME's cost and investment, the
underground development component of Parys Mountain, with a scope to be agreed,
to the point of commencement of production, in consideration of which QME would
earn a 30% undivided joint venture interest in the Parys Mountain project. If
exercised, this would represent a significant portion of the capital cost of
the project and could be considered to be a major equity contribution in any
future financing package.
Parys Mountain - Path towards Production
We have continued to review the results of the 2017 Scoping Study on Parys
Mountain with the objective of enhancing the economics of the project to
attract the capital financing necessary to achieve our target of getting the
Parys Mountain Mine into production at the earliest date possible. The 2017
Scoping Study by Micon International Limited and Fairport Engineering Limited
recommended further work as interim steps towards undertaking a Feasibility
Study, including more detailed mine planning and design, more engineering
studies, additional metallurgical test work and a review of tailings management
and environmental and planning permissions, all of which require new and
further financing.
The Project Development and Co-operation Agreement with QME Mining Technical
Services will see the completion of a substantial part of the recommended
further work on mine planning and design and project optimisation. The 2017
Scoping Study was based on mining only the 2.1 million tonnes of indicated
resources reported by Micon in 2012. Micon had reported a further 4.1 million
tonnes of inferred resources which were not incorporated into the Scoping
Study. Development of even half of these inferred resources would significantly
increase the projected life of the Parys Mountain mine with potential positive
outcomes on the project economics.
The Development Agreement with QME will examine a revised mine model with the
objective of incorporating some of the inferred resources, including part of
the higher-grade Engine Zone inferred resources, into the earlier years of the
mine plan with the intention of increasing the life of the mine to at least 10
years.
The 2017 Scoping Study was based on the initial development and production from
the White Rock zone using a newly developed decline eventually leading to
development of the deeper Engine zone and then the rehabilitation and use of
the Morris Shaft as a hoisting facility. The QME programme will examine whether
different approaches to accessing the orebodies, particularly by the early
dewatering, rehabilitation and recommissioning of the Morris Shaft, could speed
up access to the higher-grade Engine zone resources. This should have a
beneficial effect upon both the net present value of the operation and the
pay-back period.
It is expected that these optimisation studies will be completed by the middle
of 2019 and, subject to financing being available, would then form the basis
for commissioning of a Preliminary Feasibility Study to lead to an overall
project financing package. In the meantime, we will continue to maintain our
mineral interests in good standing. We have confirmed that our current planning
consents remain in good order and we will make the appropriate preparations for
those further environmental baseline studies that will be required as part of
the expected Preliminary Feasibility Study. We will also continue to discuss
concentrate and metal sales with brokers, traders and smelters as part of both
the longer-term financing plan and as inputs to the future studies.
Iron Ore
Iron ore prices have continued to grow steadily if not spectacularly during
2018 and currently 62%Fe ore is trading at just under $75 per tonne. The
premiums for higher grade ore have weakened slightly but still provide an
exceptional differential over the 62% Fe basis. This slow but steady growth
period represents some consolidation after fairly erratic trading during the
last five years and could herald the beginning of a more mature and financeable
market.
Grangesberg
Anglesey continues to manage the Grangesberg iron ore project in Central Sweden
though these activities have been kept at a minimum level while product prices
have remained low. However, the greater maturity of the market coupled with
some increase in price, the continuing premiums expected for premium product,
and importantly the announcement by LKAB that its flagship Kiruna project in
northern Sweden will have a shorter life than originally planned, makes the
interest in developing the Grangesberg project albeit at significant capital
cost much more likely. We continue to support Grangesberg and recognise that it
is likely that further external partnerships will be required to raise the
capital required for full development.
Labrador
The group continues to hold a 12% interest in Labrador Iron Mines Limited which
owns extensive iron ore resources and facilities in the Schefferville area of
Labrador and Quebec in Canada. These resources are kept on a stand-by care and
maintenance basis and subject to financing are positioned to resume operations
as soon as economic conditions warrant.
Operations
As always, we have kept our corporate and operating costs at the lowest level
consistent with maintaining our assets in good order. We will maintain this
policy going forward but costs will increase once a feasibility study is
commissioned on Parys Mountain and as activity is resumed on our iron ore
properties.
Financial results
The group had no revenue for the period. The loss for the six months to 30
September 2018 was GBP137,117 (2017 - GBP167,186) and the expenditures on the
mineral property in the period were GBP25,755 compared to GBP65,943 in the
comparative period when there were additional expenses in respect of
consultants' fees. Net current assets at 30 September 2018 were GBP7,874 compared
to GBP91,033 at 31 March 2018. Further funding will be required for continuing
expenses as well as the maintenance and development of the group's mineral
properties. A substantial amount of work on mine planning and project
optimisation at Parys Mountain will be completed at no cost to Anglesey under
the Project Development Co-operation Agreement with QME Technical Services.
Outlook
We remain confident that demand for metals will remain strong and the outlook
for commodity prices will remain positive for the foreseeable future. There
will be occasional pressures on price by external geopolitical forces but the
underlying growth of the emerging industrialised nations particularly China
will support demand growth in the longer term.
On that basis we look to move Parys Mountain forward in a planned and
sequential manner, firstly through optimisation studies to determine the best
development plan and then advancing through feasibility for raising the
necessary finance. We will also continue to review the commercial and
development opportunities for our iron ore projects and look for other new
opportunities as they present themselves.
I would like to thank the current directors for their continuing diligence and
support in moving the Parys Mountain mine project forward and again thank
shareholders for their continued confidence and patience.
John F Kearney
Chairman
29 November 2018
Unaudited condensed consolidated income statement
Notes Unaudited six months ended Unaudited six months ended
30 September 2018 30 September 2017
All operations are continuing
GBP GBP
Revenue - -
Expenses (57,477) (78,100)
Equity-settled employee benefits - (9,324)
Investment income 52 56
Finance costs (79,719) (79,954)
Foreign exchange movement 27 136
Loss before tax (137,117) (167,186)
Taxation 8 - -
Loss for the period 7 (137,117) (167,186)
Loss per share
Basic - pence per share (0.1)p (0.1)p
Diluted - pence per share (0.1)p (0.1)p
Unaudited condensed consolidated statement of comprehensive income
Loss for the period (137,117) (167,186)
Other comprehensive income
Items that may subsequently be reclassified to profit or
loss:
Exchange difference on (21,265) 21,155
translation of foreign
holding
Total comprehensive loss for the (158,382) (146,031)
period
All attributable to equity holders of the company
Unaudited condensed consolidated statement of financial position
Notes Unaudited 30 Audited 31
September 2018 March 2018
GBP GBP
Assets
Non-current assets
Mineral property exploration and 9 15,136,896 15,111,141
evaluation
Property, plant and equipment 204,687 204,687
Investments 10 86,660 86,660
Deposit 123,279 123,227
15,551,522 15,525,715
Current assets
Other receivables 18,014 19,790
Cash and cash equivalents 57,537 137,113
75,551 156,903
Total assets 15,627,073 15,682,618
Liabilities
Current liabilities
Trade and other payables (67,677) (65,870)
(67,677) (65,870)
Net current assets 7,874 91,033
Non-current liabilities
Loans (3,644,266) (3,543,236)
Long term provision (50,000) (50,000)
(3,694,266) (3,593,236)
Total liabilities (3,761,943) (3,659,106)
Net assets 11,865,130 12,023,512
Equity
Share capital 11 7,286,914 7,286,914
Share premium 10,171,986 10,171,986
Currency translation reserve (63,286) (42,021)
Retained losses (5,530,484) (5,393,367)
Total shareholders' funds 11,865,130 12,023,512
All attributable to equity holders of the company
Unaudited condensed consolidated statement of cash flows
Notes Unaudited six months ended Unaudited six months ended
30 September 2018 30 September 2017
GBP GBP
Operating activities
Loss for the period (137,117) (167,186)
Adjustments for:
Investment income (52) (56)
Finance costs 79,719 79,954
Equity-settled employee benefits - 9,324
Foreign exchange movement (27) (136)
(57,477) (78,100)
Movements in working capital
Decrease/(increase) in 1,812 (10,636)
receivables
Increase/(decrease) in payables 694 (25,693)
Net cash used in operating (54,971) (114,429)
activities
Investing activities
Investment income - 6
Mineral property exploration and (24,632) (51,918)
evaluation
Net cash used in investing activities (24,632) (51,912)
Financing activities
Loans - -
Net cash generated from financing - -
activities
Net (decrease) in cash and cash (79,603) (166,341)
equivalents
Cash and cash equivalents at start 137,113 392,293
of period
Foreign exchange movement 27 136
Cash and cash equivalents at end 57,537 226,088
of period
All attributable to equity holders of the company
Unaudited condensed consolidated statement of changes in group equity
Share Share Currency Retained Total
capital premium translation losses GBP
GBP GBP reserve GBP
GBP
Equity at 1 April 2018 - 7,286,914 10,171,986 (42,021) 12,023,512
audited (5,393,367)
Total comprehensive
income for the
period:
Exchange difference on - - (21,265) - (21,265)
translation of
foreign holding
Loss for the period - - - (137,117) (137,117)
Total comprehensive - - (21,265) (137,117) (158,382)
income for the
period
Equity-settled employee - - - - -
benefits
Equity at 7,286,914 10,171,986 (63,286) 11,865,130
30 September 2018 - (5,530,484)
unaudited
Comparative period
Equity at 1 April 2017 - 7,286,914 10,171,986 (73,510) 12,260,888
audited (5,124,502)
Total comprehensive
income for the
period:
Exchange difference on - - 21,155 - 21,155
translation of
foreign holding
Loss for the period - - - (167,186) (167,186)
Total comprehensive - - 21,155 (167,186) (146,031)
income for the
period
Equity-settled employee - - - 9,324 9,324
benefits
Equity at 7,286,914 10,171,986 (52,355) 12,124,181
30 September 2017 - (5,282,364)
unaudited
All attributable to equity holders of the company
Notes to the accounts
1. Basis of preparation
This half-yearly financial report comprises the unaudited condensed
consolidated financial statements of the group for the six months ended 30
September 2018. It has been prepared in accordance with the Disclosure and
Transparency Rules of the Financial Conduct Authority, the requirements of IAS
34 - Interim financial reporting (as adopted by the European Union) and using
the going concern basis and the directors are not aware of any events or
circumstances which would make this inappropriate. It was approved by the board
of directors on 29 November 2018. It does not constitute financial statements
within the meaning of section 434 of the Companies Act 2006 and does not
include all of the information and disclosures required for annual financial
statements. It should be read in conjunction with the annual report and
financial statements for the year ended 31 March 2018 which is available on
request from the company or may be viewed at www.angleseymining.co.uk.
The financial information contained in this report in respect of the year ended
31 March 2018 has been extracted from the report and financial statements for
that year which have been filed with the Registrar of Companies. The report of
the auditors on those accounts did not contain a statement under section 498(2)
or (3) of the Companies Act 2006 and was not qualified. The half-yearly results
for the current and comparative periods have not been audited or reviewed.
2. Significant accounting policies
The accounting policies applied in these unaudited condensed consolidated
financial statements are consistent with those set out in the annual report and
financial statements for the year ended 31 March 2018.
Accounting policies
The accounting policies applied in these unaudited condensed consolidated
financial statements are consistent with those set out in the annual report and
financial statements for the year ended 31 March 2018.
New standards and interpretations effective from 1 January 2018:
* IFRS 9 Financial Instruments;
* IFRS 15 Revenue from Contracts with Customers;
* Interpretation IFRIC 22 Foreign Currency Transactions and Advance
Consideration;
* Amendments to IAS 40 Transfer of Investment Property;
* Amendments to IFRS 2 Share based payments, on clarifying how to account for
certain types of share-based payment transactions; and
* Annual improvements to IFRS Standards 2014-2016 Cycle (certain items
effective from 1 January 2017).
The above standards and interpretations have not led to any changes to the
group's accounting policies (other than disclosure) or had any other material
impact on its financial position or performance.
IFRS 9 'Financial Instruments' has been implemented with effect from 1 April
2018 and has not had a material impact on either the unaudited condensed
consolidated financial statements. However additional disclosures in respect of
the impairment of financial assets may be required in the financial statements
for the year ending 31 March 2019. IFRS 15 has no effect in this period as the
group currently has no customers.
New standards and interpretations effective from 1 January 2019:
* Clarification to IFRS15 revenue from contracts with customers;
* Annual improvements to IFRS Standards 2015-2017 Cycle;
* Amendments to IFRS 9 Financial instruments, amendments in relation to
prepayment features with negative compensation;
* Amendments to IAS 28 Investments in associates, on long term interests in
associates and joint ventures;
* Amendments to IAS 19 Employee benefits on plan amendment, curtailment or
settlement;
* IFRIC 23 Uncertainty over Income Tax Treatments; and
* IFRS 16 Leases.
New standards and interpretations effective from 1 January 2020:
* Conceptual Framework (Revised) and amendments to related references in IFRS
standard.
The directors expect that the adoption of the above pronouncements (with the
possible exceptions of IFRS9 and IFRS16) will have no material impact to the
financial statements in the period of initial application other than
disclosure.
IFRS 16 'Leases' will be effective for periods beginning on or after 1 January
2019 and therefore will be effective in the financial statements for the year
ending on 31 March 2020; transition to IFRS 16 should take place on 1 April
2019. The directors have not yet assessed the full impact IFRS16 on these
financial statements but in view of the nature of the group's leases, which are
mineral leases with a notice periods of more than one year, believe that it
will not have a significant effect.
There have been no other new or revised International Financial Reporting
Standards, International Accounting Standards or Interpretations that are in
effect since that last annual report that have a material impact on the
financial statements.
3. Risks and uncertainties
The principal risks and uncertainties set out in the group's annual report and
financial statements for the year ended 31 March 2018 remain the same for this
half-yearly financial report and can be summarised as: development risks in
respect of mineral properties, especially in respect of permitting and metal
prices; liquidity risks during development; and foreign exchange risks. More
information is to be found in the 2018 annual report - see note 1 above.
4. Statement of directors' responsibilities
The directors confirm to the best of their knowledge that: (a) the unaudited
condensed consolidated financial statements have been prepared in accordance
with the requirements of IAS 34 Interim financial reporting (as adopted by the
European Union); and (b) the interim management report includes a fair review
of the information required by the FCA's Disclosure and Transparency Rules
(4.2.7 R and 4.2.8 R). This report and financial statements were approved by
the board on 29 November 2018 and authorised for issue on behalf of the board
by Bill Hooley, chief executive officer and Danesh Varma, finance director.
5. Activities
The group is engaged in mineral property development and currently has no
turnover. There are no minority interests or exceptional items.
6. Earnings per share
The loss per share is computed by dividing the loss attributable to ordinary
shareholders of GBP0.137 million (loss to 30 September 2017 GBP0.167m), by
177,608,051 (2017 - 177,608,051) - the weighted average number of ordinary
shares in issue during the period. Where there are losses the effect of
outstanding share options is not dilutive.
7. Business and geographical segments
There are no revenues. The cost of all activities charged in the income
statement relates to exploration and development of mining properties. The
group's income statement and assets and liabilities are analysed as follows by
geographical segments, which is the basis on which information is reported to
the board.
Income statement analysis
Unaudited six months ended 30 September
2018
UK Sweden - Canada -
investment investment Total
GBP GBP GBP GBP
Expenses (57,477) - - (57,477)
Equity settled employee - - - -
benefits
Investment income 52 - - 52
Finance costs (72,117) (7,602) - (79,719)
Exchange rate movements - 27 - 27
Loss for the period (129,542) (7,575) - (137,117)
Unaudited six months ended 30 September
2017
UK Sweden - Canada -
investment investment Total
GBP GBP GBP GBP
Expenses (78,100) - - (78,100)
Equity settled employee (9,324) - - (9,324)
benefits
Investment income 56 - - 56
Finance costs (72,116) (7,838) - (79,954)
Exchange rate movements 136 - - 136
Loss for the period (159,348) (7,838) - (167,186)
Assets and liabilities
` Unaudited 30 September 2018
UK Sweden Canada
investment investment Total
GBP GBP
GBP GBP
Non current assets 15,464,862 86,659 1 15,551,522
Current assets 74,446 1,105 - 75,551
Liabilities (309,748) -
(3,452,195) (3,761,943)
Net assets/ 12,087,113 (221,984) 1 11,865,130
(liabilities)
Audited 31 March 2018
UK Sweden Canada Total
investment investment
GBP GBP
GBP GBP
Non current assets 15,439,055 86,659 1 15,525,715
Current assets 155,792 1,111 - 156,903
Liabilities (280,835) -
(3,378,271) (3,659,106)
Net assets/ 12,216,576 (193,065) 1 12,023,512
(liabilities)
8. Deferred tax
There is an unrecognised deferred tax asset of GBP1.3 million (31 March 2018 - GBP
1.3m) which, in view of the group's results, is not considered to be
recoverable in the short term. There are also capital allowances, including
mineral extraction allowances, exceeding GBP12.5 million (unchanged from 31 March
2018) unclaimed and available. No deferred tax asset is recognised in the
condensed financial statements.
9. Mineral property exploration and evaluation costs
Mineral property exploration and evaluation costs incurred by the group are
carried in the unaudited condensed consolidated financial statements at cost,
less an impairment provision if appropriate. The recovery of these costs is
dependent upon the successful development and operation of the Parys Mountain
project which is itself conditional on finance being available to fund such
development. During the period expenditure of GBP25,755 was incurred (six months
to 30 September 2017 - GBP65,943). There have been no indicators of impairment
during the period.
10. Investments
Labrador Grangesberg Total
GBP GBP GBP
Balance at 1 April 2018, 31 1 86,659 86,660
March 2018
and 31 March 2019
Labrador: The group's investment is classified as 'unquoted' and is held at a
nominal value of GBP1.
Grangesberg: The group has a 6% holding in Grangesberg Iron AB (an unquoted
Swedish company) and a right of first refusal over shares amounting to a
further 51% of that company. This investment has been initially recognised and
subsequently measured at cost, on the basis that the shares are not quoted and
a reliable fair value is not able to be estimated.
11. Share capital
Ordinary shares Deferred shares Total
of 1p of 4p
Issued and Nominal Number Nominal Number Nominal
fully paid value GBP value GBP value GBP
At 31 March 2017 and 1,776,081 177,608,051 5,510,833 137,770,835 7,286,914
31 March 2018
12. Financial instruments
Group Available for sale Loans & receivables
assets
Unaudited 31 March Unaudited 31 March
30 2018 30 2018
September September
2018 2018
GBP GBP GBP GBP
Investments 1 1 - -
Deposit - - 123,279 123,227
Other receivables - - 18,014 19,790
Cash and cash - - 57,537 137,113
equivalents
- -
1 1 198,830 280,130
Financial liabilities
measured at amortised
cost
Unaudited 31 March
30 2018
September
2018
GBP GBP
Trade payables (17,337) (17,631)
Other payables (50,340) (48,239)
Loans
(3,644,266) (3,543,236)
(3,711,943) (3,609,106)
13. Events after the reporting period
None.
14. Related party transactions
None.
Anglesey Mining plc
Directors:
John
Kearney Chairman
Bill
Hooley Chief executive
Danesh Varma
Finance director
David
Lean Non executive
Howard Miller
Non executive
Parys Mountain site: Parys Mountain, Amlwch, Anglesey, LL68 9RE Phone 01407
831275
London office: Painter's Hall Chambers, 8 Little Trinity Lane, London, EC4V
2AN Phone 07740 932766
Registered office: Tower Bridge House, St. Katharine's Way, London, E1W 1DD
Share registrars: Capita Registrars www.capitaregistrars.com
Phone: 0371 664 0445 - for all change of address and shareholder
administration matters (calls are charged at standard geographic rate and will
vary by provider), from overseas +44 371 664 0445 (charged at the applicable
international rate).
Web site: www.angleseymining.co.uk
E-mail: mail@angleseymining.co.uk
Shares listed on the London Stock Exchange - LSE:AYM Company
registration number 1849957
END
(END) Dow Jones Newswires
November 30, 2018 02:00 ET (07:00 GMT)
Anglesey Mining (LSE:AYM)
Graphique Historique de l'Action
De Juin 2024 à Juil 2024
Anglesey Mining (LSE:AYM)
Graphique Historique de l'Action
De Juil 2023 à Juil 2024
