TIDMORE

RNS Number : 4840R

Orogen PLC

22 September 2017

Orogen plc

("Orogen" or the "Company")

Half Yearly Results

Financials

In the six months to 30 June 2017 the Company reported turnover of GBPNIL (2016: GBPNIL), and a

loss before tax of GBP733K (2016: loss of GBP171K).

Strategy

On 21 March 2017, Orogen announced details of a proposed new strategy and consequent restructuring of its operations. The Board has completed a review of its operations and has concluded that it is no longer in shareholders' interests for the Company to continue to provide financial support for its mineral exploration activities. It is therefore seeking to dispose of its interests in its mineral exploration projects, and to conclude an acquisition which would constitute a reverse takeover under the AIM Rules. The Company has decided to cap further expenditure on its existing mineral exploration projects at GBP75,000 and to put them on care and maintenance programmes whilst buyers are sought for the Company's interests in these assets.

As an initial step in the above restructuring, the Company proposed to undertake a share consolidation and sub-division in order to increase the price at which the Company's shares trade on AIM and to enable the Company to raise funds through the issue of new shares. As part of the proposals that were put to a shareholder vote on 7 April 2017, up to GBP3.47m of new funds were to be introduced to the Company to implement the new strategy and the Company's name was to be changed to Orogen plc.

All resolutions put to shareholders were approved at a general meeting on 7 April 2017. Accordingly, the capital reorganisation and change of the Company name to Orogen plc were completed.

The decision to cease the Company's mineral exploration activities represents a fundamental change of business under Rule 15 of the AIM Rules, a consequence of which is that the Company was deemed to be a Rule 15 Cash Shell which means that the Company must make an acquisition or acquisitions which constitute a reverse takeover under Rule 14 of the AIM Rules within six months of the general meeting, otherwise the trading of the Company's shares on AIM will be suspended.

If the Company has not made an acquisition or acquisitions which constitute a reverse takeover under Rule 14 of the AIM Rules within six months of such suspension, the admission of the Company's shares to trading on AIM will be cancelled.

On 26 May 2017 the Company's shares were suspended following an announcement advising that Orogen had entered into heads of agreement to acquire the entire issued share capital of Thread 35 Limited ("Thread"), a company that operates an e-commerce womenswear brand under the name "Sosandar". Furthermore, on that date the Company announced that it had made a secured loan of GBP250,000 to Thread.

The Company has subsequently notified that it has loaned a further GBP500,000 to Thread.

The Company is pleased to announce that it continues to undertake due diligence on Thread and is hopeful that it will shortly undertake a reverse transaction with Thread. A further announcement will be made in due course.

ADAM REYNOLDS

Non-Executive Chairman

22 September 2017

Consolidated statement of profit or loss and other comprehensive income

For the six months ended 30 June 2017

 
                                                     Unaudited   Unaudited        Audited 
                                                      6 months    6 months      12 months 
                                                            to          to             to 
                                                       30 June     30 June    31 December 
                                                          2017        2016           2016 
                                             Notes     GBP'000     GBP'000        GBP'000 
------------------------------------------  ------  ----------  ----------  ------------- 
 General and administrative                              (637)       (154)          (334) 
 Impairment of exploration and evaluation 
  assets                                         4        (22)         (9)        (2,683) 
 Share based payments                                        -        (10)           (20) 
 From discontinued operations                             (74)           -           (49) 
 Group operating loss                                    (733)       (173)        (3,086) 
 Interest received                                           -           2              3 
------------------------------------------  ------  ----------  ----------  ------------- 
 Loss on ordinary activities before 
  taxation                                               (733)       (171)        (3,083) 
 Tax on loss on ordinary activities                          -           -              - 
------------------------------------------  ------  ----------  ----------  ------------- 
 Loss for the year from continuing 
  operations                                             (733)       (171)        (3,083) 
 
 Attributable to: 
 Equity holders of the parent                            (733)       (171)        (2,609) 
 Non-controlling interests                                   0           -          (474) 
------------------------------------------  ------  ----------  ----------  ------------- 
 Group loss for the period                               (733)       (171)        (3,083) 
 Exchange translation differences                          (1)           -             66 
------------------------------------------  ------  ----------  ----------  ------------- 
 Total comprehensive loss for the 
  period                                                 (734)       (171)        (3,017) 
 
 Attributable to: 
 Owners of the parent                                    (732)       (171)        (2,543) 
 Non-controlling interests                                 (2)           -          (474) 
------------------------------------------  ------  ----------  ----------  ------------- 
                                                         (734)       (171)        (3,017) 
------------------------------------------  ------  ----------  ----------  ------------- 
 
 Loss per share: 
 Loss per share - basic and diluted, 
  attributable to ordinary equity 
  holders of the parent (pence)                  3     (0.544)     (0.776)         (10.3) 
 
 

Consolidated statement of financial position

As at 30 June 2017

 
                                              Unaudited   Unaudited        Audited 
                                                30 June     30 June    31 December 
                                                   2017        2016           2016 
                                      Notes     GBP'000     GBP'000        GBP'000 
-----------------------------------  ------  ----------  ----------  ------------- 
 Assets 
 Non-current assets 
 Exploration and evaluation assets        4           -       1,670              - 
 Property, plant and equipment                        -           2              - 
-----------------------------------  ------  ----------  ----------  ------------- 
 Total non-current assets                             -       1,672              - 
-----------------------------------  ------  ----------  ----------  ------------- 
 
 Current assets 
 Trade and other receivables                        423          27             46 
 Cash and cash equivalents                5       2,703         652            342 
 Total current assets                             3,126         679            388 
-----------------------------------  ------  ----------  ----------  ------------- 
 Total assets                                     3,126       2,351            388 
-----------------------------------  ------  ----------  ----------  ------------- 
 
 Equity and liabilities 
 Equity 
 Share capital                            6       4,884       4,418          4,651 
 Share premium                                   15,535      12,181         12,268 
 Other reserves                                     678         635            676 
 Retained earnings                             (18,103)    (14,936)       (17,367) 
-----------------------------------  ------  ----------  ----------  ------------- 
 Equity attributable to owners of 
  the parent                                      2,994       2,298            228 
 Non-controlling interests                            3           -              3 
-----------------------------------  ------  ----------  ----------  ------------- 
 Total equity                                     2,997       2,298            231 
-----------------------------------  ------  ----------  ----------  ------------- 
 
 Current liabilities 
 Trade and other payables                           129          53            157 
-----------------------------------  ------  ----------  ----------  ------------- 
 Total current liabilities                          129          53            157 
-----------------------------------  ------  ----------  ----------  ------------- 
 Total liabilities                                  129          53            157 
-----------------------------------  ------  ----------  ----------  ------------- 
 Total equity and liabilities                     3,126       2,351            388 
-----------------------------------  ------  ----------  ----------  ------------- 
 
 
                                                      Unaudited   Unaudited           Audited 
                                                       6 months    6 months         12 months 
                                                             to          to    to 31 December 
                                                        30 June     30 June              2016 
                                                           2016        2015 
                                              Notes     GBP'000     GBP'000           GBP'000 
-------------------------------------------  ------  ----------  ----------  ---------------- 
 Cash flows from operating activities 
 Group operating loss                                     (733)       (173)           (3,086) 
 Share based payments                                         -          10                20 
 (Increase)/decrease in trade and other 
  receivables                                             (323)         (5)                91 
 Decrease in trade and other payables                      (83)        (10)              (32) 
 Impairment of exploration and evaluation 
  assets                                          4          96           9             2,691 
 Profit on disposal of subsidiary                             -           -              (25) 
 Net cash flow from operating activities                (1,043)       (169)             (341) 
-------------------------------------------  ------  ----------  ----------  ---------------- 
 
 Cash flow from investing activities 
 Expenditure on exploration and evaluation 
  assets and project earn-ins                     4        (96)       (102)             (568) 
 Outflow on disposal of subsidiary                            -           -               (4) 
 Inflow on acquisition of subsidiary                          -           -                11 
 Interest received                                            -           2                 3 
-------------------------------------------  ------  ----------  ----------  ---------------- 
 Net cash flow from investing activities                   (96)       (100)             (558) 
-------------------------------------------  ------  ----------  ----------  ---------------- 
 
 Cash flow from financing activities 
 Net proceeds from issue of equity 
  instruments                                     6       3,500           -               320 
-------------------------------------------  ------  ----------  ----------  ---------------- 
 Net cash flow from financing activities                  3,500           -               320 
-------------------------------------------  ------  ----------  ----------  ---------------- 
 
 Net change in cash and cash equivalents                  2,361       (269)             (579) 
 Net foreign exchange difference                              -           -                 - 
 Cash and cash equivalents at beginning 
  of period                                       5         342         921               921 
-------------------------------------------  ------  ----------  ----------  ---------------- 
 Cash and cash equivalents at end of 
  period                                          5       2,703         652               342 
-------------------------------------------  ------  ----------  ----------  ---------------- 
 
 
                                                                     Foreign 
                                             Share                  currency 
                                             based    Retained   translation              Non-controlling 
                     Share       Share     payment    earnings       reserve     Total          interests      Total 
                   capital     premium     reserve                                                            equity 
                   GBP'000     GBP'000     GBP'000     GBP'000       GBP'000   GBP'000            GBP'000    GBP'000 
-------------   ----------  ----------  ----------  ----------  ------------  --------  -----------------  --------- 
 Balance at 1 
  January 
  2016               4,418      12,181         597    (14,765)            28     2,459                  -      2,459 
 Loss for the 
  period                 -           -           -       (171)             -     (171)                  -      (171) 
 Share based 
  payments               -           -          10           -             -        10                  -         10 
 Balance at 30 
  June 2016          4,418      12,181         607    (14,936)            28     2,298                  -      2,298 
--------------  ----------  ----------  ----------  ----------  ------------  --------  -----------------  --------- 
 
 Balance at 1 
  July 
  2016               4,418      12,181         607    (14,936)            28     2,298                  -      2,298 
 Loss for the 
  period                 -           -           -     (2,431)             -   (2,431)                  3    (2,428) 
 Issue of 
  share 
  capital              233          87           -           -             -       320                  -        320 
 Foreign 
  exchange 
  translation 
  reserve                -           -           -           -            38        38                  -         38 
 Share based 
  payments               -           -           3           -             -         3                  -          3 
 Balance at 31 
  December 
  2016               4,651      12,268         610    (17,367)            66       228                  3        231 
--------------  ----------  ----------  ----------  ----------  ------------  --------  -----------------  --------- 
 
 Balance at 1 
  January 
  2017               4,651      12,268         610    (17,367)            66       228                  3        231 
 Loss for the 
  period                 -           -           -       (733)             -     (733)                  -      (733) 
 Issue of 
  share 
  capital              233       3,267           -           -             -     3,500                  -      3,500 
 Foreign 
  exchange 
  translation 
  reserve                                                    -           (1)       (1)                  -        (1) 
 Balance at 30 
  June 2017          4,884      15,535         610    (18,100)            65     2,994                  3      2,997 
--------------  ----------  ----------  ----------  ----------  ------------  --------  -----------------  --------- 
 

1 General information

Orogen Gold plc is a company incorporated and domiciled in England and Wales. Details of the registered office, the officers and advisers to the Company are presented on the Company information page at the end of this report. The Company's offices are in London and Dublin. The Company is quoted on the AIM market of the London Stock Exchange (ticker: ORE.L).

The Mutsk gold exploration project in Armenia is the Company's main operational project and the Silverton project in Nevada, USA was added to the exploration portfolio in April 2016. The company is now classified as an AIM rule 15 cash shell.

2 Basis of preparation

The financial information for the six months ended 30 June 2017 and 30 June 2016 is unaudited.

The Interim Report has been prepared using the same accounting policies as were applied in the Group's audited financial statements to 31 December 2016, which were prepared in accordance with International Financial Reporting Standards ("IFRS"). As is permitted by the AIM rules the Directors have not adopted the requirements of IAS34 "Interim Financial Reporting" in preparing the financial statements. Accordingly, the financial statements are not in full compliance with IFRS and have neither been audited nor reviewed pursuant to guidance issued by the Auditing Practices Board. The Directors consider that the financial information presented in this Interim Report represents fairly the financial position, operations and cash flows for the period, in conformity with IFRS. The Interim Report for the six months ended 30 June 2017 was approved by the Directors on 21 September 2017.

The financial information presented for the period ended 31 December 2016 is an extraction from the Group's audited accounts on which the auditors issued an unqualified report. The information presented does not constitute full accounts for that period.

3 Loss per share

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:

 
                                               Unaudited   Unaudited        Audited 
                                                 30 June     30 June    31 December 
                                                    2017        2016           2016 
                                                 GBP'000     GBP'000        GBP'000 
--------------------------------------------  ----------  ----------  ------------- 
 Loss after tax attributable to equity 
  holders of the parent                            (732)       (171)        (2,609) 
 Weighted average number of ordinary shares 
  in issue (millions)                            134,626      22,030         25,702 
 Basic and diluted loss per share (pence)        (0.544)     (0.776)         (10.3) 
--------------------------------------------  ----------  ----------  ------------- 
 

Basic and diluted earnings per share are the same, since where a loss is incurred the effect of outstanding share options and warrants is considered anti-dilutive and is ignored for the purpose of the loss per share calculation. The share options outstanding as at 30 June 2017 totalled 380,000,000 (30 June 2016: 380,000,000, 31 December 2016: 380,000,000) and are potentially dilutive.

4 Exploration and evaluation assets

 
 
                                      Armenia     Silverton     Serbia     Total 
                                      GBP'000       GBP'000    GBP'000   GBP'000 
---------------------------------  ----------  ------------  ---------  -------- 
 Cost 
 At 1 January 2016                      1,577             -      5,554     7,131 
 Additions                                 87             6          9       102 
---------------------------------  ----------  ------------  ---------  -------- 
 At 30 June 2016                        1,664             6      5,563     7,233 
---------------------------------  ----------  ------------  ---------  -------- 
 Impairment 
 At 1 January 2016                          -             -      5,554     5,554 
 Impairment charge                          -             -          9         9 
---------------------------------  ----------  ------------  ---------  -------- 
 At 30 June 2016                            -             -      5,563     5,563 
---------------------------------  ----------  ------------  ---------  -------- 
 Carrying value 30 June 2016            1,664             6          -     1,670 
---------------------------------  ----------  ------------  ---------  -------- 
 Cost 
 At 1 July 2016                         1,664             6      5,563     7,233 
 Additions                                851           162          -     1,013 
 Discontinued operations                    -             -    (5,563)   (5,563) 
---------------------------------  ----------  ------------  ---------  -------- 
 At 31 December 2016                    2,515           168          -     2,683 
---------------------------------  ----------  ------------  ---------  -------- 
 Impairment 
 At 1 July 2016                             -             -      5,563     5,563 
 Impairment charge                      2,515           168          -     2,683 
 Discontinued operations                    -             -    (5,563)   (5,563) 
---------------------------------  ----------  ------------  ---------  -------- 
 At 31 December 2016                    2,515           168          -     2,683 
---------------------------------  ----------  ------------  ---------  -------- 
 Carrying value 31 December 2016            -             -          -         - 
---------------------------------  ----------  ------------  ---------  -------- 
 Cost 
 At 1 January 2017                      2,515           168          -     2,683 
 Additions                                  -             -         96        96 
---------------------------------  ----------  ------------  ---------  -------- 
 At 30 June 2017                        2,515           168         96     2,779 
---------------------------------  ----------  ------------  ---------  -------- 
 Impairment 
 At 1 January 2017                      2,515           168          -     2,683 
 Impairment charge                          -             -         96        96 
---------------------------------  ----------  ------------  ---------  -------- 
 At 30 June 2017                        2,515           168         96     2,779 
---------------------------------  ----------  ------------  ---------  -------- 
 Carrying value 30 June 2017                -             -          -         - 
---------------------------------  ----------  ------------  ---------  -------- 
 

5 Cash and cash equivalents

 
                              Unaudited   Unaudited        Audited 
                                30 June     30 June    31 December 
                                   2016        2016           2016 
                                GBP'000     GBP'000        GBP'000 
---------------------------  ----------  ----------  ------------- 
 Cash at bank                     2,703         652            342 
---------------------------  ----------  ----------  ------------- 
 Cash and cash equivalents        2,703         652            342 
---------------------------  ----------  ----------  ------------- 
 

6 Share capital

Details of ordinary and deferred shares issued are in the table below:

 
                                         Ordinary Shares            Deferred Shares          Deferred Shares 
                                            (GBP0.01)                   (GBP0.9)                (GBP0.01) 
------------  -----------------  ------------------------------  ---------------------  ------------------------ 
                                                    Issue Price                  Issue           Number    Issue 
   Date                                    Number           GBP        Number    Price        of shares    Price 
               Details                  of shares                   of shares      GBP                       GBP 
------------  -----------------  ----------------  ------------  ------------  -------  ---------------  ------- 
 At 1 Jan 
  2017         Opening Balance      7,841,002,670                 429,643,035 
------------  -----------------  ----------------  ------------  ------------  -------  ---------------  ------- 
 7 Apr 2017    Share placing                   80        0.0001 
 7 Apr 2017    Consolidation      (7,809,638,739) 
 7 Apr 2017    Subdivision                                                                7,809,638,739   0.0001 
 10 Apr 
  2017         Share placing          231,364,011         0.015 
 03 May 
  2017         Share placing            2,000,000         0.015 
 At 30 June 
  2017         Closing Balance        264,728,022                 429,643,035             7,809,638,739 
------------  -----------------  ----------------  ------------  ------------  -------  ---------------  ------- 
 

7 Subsequent events

On 6 July 2017, Orogen announced a further drawdown of Loan to Thread 35 Limited of GBP250,000. This bring the total outstanding loan amount to GBP500,000.

8 Copy of the Interim Report

Copies of the Interim Report are available to download from the Company's website at www.orogen.co.uk.

Contacts:-

 
      Orogen plc                                         C/o Walbrook 
       Adam Reynolds, Non-executive Chairman 
      Cairn Financial Advisers LLP (Nominated 
       Adviser) 
       Liam Murray / Sandy Jamieson                      +44 (0) 20 7213 0880 
      Turner Pope Investments (TPI) Ltd (Broker) 
       Ben Turner / James Pope                           +44 (0) 20 3621 4120 
      Walbrook (Public Relations and Investor 
       Relations) 
       Paul Cornelius / Gary Middleton                   +44 (0) 20 7933 8780 
 

This information is provided by RNS

The company news service from the London Stock Exchange

END

IR BSGDCCUDBGRB

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September 22, 2017 02:00 ET (06:00 GMT)

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