TIDMALBA
RNS Number : 2711M
Alba Mineral Resources PLC
26 April 2018
Alba Mineral Resources plc
("Alba" or "the Company")
Final Results for the year ended 30 November 2017
The Board of Alba Mineral Resources plc (the "Company" or
"Alba", and collectively with its Subsidiary Companies, the
"Group") is pleased to report the results for the year ended 30
November 2017.
CHAIRMAN'S STATEMENT
INTRODUCTION
This has been an exceedingly busy year for Alba. We have
consolidated our interests in the UK onshore oil and gas sector by
increasing our interests at the Horse Hill exploration project and
at the same time completing the acquisition of a 5 per cent
interest in the Brockham production licence. Significant strides
forward have been taken at both those projects, not only as regards
work on the ground but also in terms of the pursuit of key
regulatory approvals as we and our partners seek to push those
projects forward to production.
On the mining side, which of course is where Alba started out
and which remains a key focus of our business, during the year we
carried out a two-phase exploration programme at our high-grade
Amitsoq graphite project in southern Greenland, and were able to
report a significant new discovery. It is one of the most exciting
and rewarding aspects of exploration work when you unearth a new
find through exploration work. Sometimes that can be as a result of
painstaking desktop reviews of historical and in-house technical
data, but sometimes, as here, it can also be the result of having
good people in your exploration team who keep an open mind when out
in the field and have the skill to spot the signs of a potential
new zone of mineralisation. That is how we made the Kalaaq graphite
discovery.
Aside from Amitsoq, and given our positive experience in the
Greenland mining sector, during the year we undertook a widespread
review of mining opportunities in Greenland and this led us to
apply for - and to be granted - three new projects, all in the
north-west of Greenland. Most immediately exciting, I would say, is
our 100 per cent owned Thule Black Sands project ("TBS"). This
encompasses approximately 30 kilometres of coastline which is now
known to host high-grade ilmenite mineralisation. I say "now known"
because the TBS exploration licence was granted to us only last
August, and just a month later, in September, having received of
the support of the Mines Department in Greenland (the MLSA) to
expedite our field application, we were out in the field working so
that we could collect as many samples as possible to send to
independent laboratories for analysis. The results of this initial
testwork have very much confirmed that we were right to stake this
ground in north-west Greenland.
Our strategy at Alba, where possible, is to target assets that
have a production history, such as our high- grade Amitsoq graphite
project, and also the Clogau gold project, the 49 per cent stake in
which we acquired after the year end. Clogau has a long and
illustrious production history; indeed most of the United Kingdom's
gold production has come from there. On the oil and gas side, when
acquiring from Angus Energy a five per cent interest in the Horse
Hill exploration licence back in 2015, we were attracted by the
nearby Brockham production licence which Angus were majority owners
of, and were able to negotiate, as part of the transaction with
Angus, an option to farm in for 5 per cent of Brockham. I am very
pleased to say that Brockham is now back in production - modestly
to start with but we hope, in due course, in much greater volumes,
and so at Alba we are now able to say that we are a participant in
a producing natural resources project.
Now we are working to bring some of our other key assets through
the exploration and development phase and into the mining and
production phases in the years ahead. This is what we were formed
to do as a company, and it remains a key objective for Alba as we
seek to create real value for our shareholders.
I set out below my thoughts on the outlook for Alba in the year
ahead, followed by a detailed review of activities.
OUTLOOK
Our objectives at Alba over the past few years have been to
strengthen our asset portfolio by identifying assets with real
potential to be brought into commercial production. This began
within a few months of my appointment in 2014, when we made our
first foray into the UK oil and gas sector with the acquisition of
an initial five per cent interest in the Horse Hill consortium.
Some four years later, having amassed an 18.1 per cent stake in the
Horse Hill consortium, we are now the second largest shareholder in
that consortium, as well owning as a five per cent interest in the
Brockham Oil Field which has post financial year end brought the
first production revenues since Alba was formed as a company. And
on the mining side, we have strengthened our portfolio greatly, in
particular as we now own 90 per cent of the high grade Amitsoq
graphite project, and 100 per cent of the high grade Thule Black
Sands ilmenite project, both in Greenland.
Having now developed what we consider to be a strong asset base,
with a diversified mix of commodities in stable jurisdictions, we
enter a year at Alba when we expect to see key development
milestones reached at some of our key projects. At Horse Hill, once
the final regulatory approvals are forthcoming, the Operator will
commence long-term flow testing of the HH-1 well, which we hope
will lead to a declaration of commerciality and, therefore, to an
application for a production licence. At Brockham, as I write we
await final approvals for Angus Energy, the operator at Brockham,
to commence production at the key BR-X4Z well. In Greenland, we
enter our first full field season at Thule Black Sands with the
objective of building on the successful field and testwork
programme we have undertaken to date.
In terms of market sentiment for the key commodities in which we
are involved, the oil price has more than doubled from its 2015
lows and graphite is a key component of lithium-ion batteries
demand for which is projected to increase with the forecast growth
of the Electric Vehicle sector in the coming years. Ilmenite,
meanwhile, is the primary source of titanium dioxide which is a
multi-billion dollar market the growth in which is expected to be
fuelled by demand from India, China and the Asia Pacific
region.
For all these reasons, Alba is well placed for growth.
REVIEW OF ACTIVITIES
Horse Hill (Oil and Gas, United Kingdom)
The Horse Hill-1 well ("HH-1") is located within onshore
exploration licence PEDL 137, on the northern side of the Weald
Basin near Gatwick Airport. Alba owns a 18.1% direct interest in
Horse Hill Developments Limited ("HHDL"). HHDL is a special purpose
company that owns a 65% participating interest and operatorship of
Licence PEDL137 and the adjacent Licence PEDL246 in the UK Weald
Basin. The remaining 35% participating interests in the PEDL137 and
PEDL246 licences are held by a subsidiary of US-based Tellurian
Inc. (formerly known as Magellan Petroleum Corporation). Alba's
effective interest in the licences is therefore 11.765%.
The key development at Horse Hill during the reporting year was
the decision by Surrey County Council's planning committee in
October 2017 to grant planning permission to enable HHDL to carry
out extended well tests ("EWTs") at HH-1 as well as to drill and
test both a sidetrack from the existing HH-1 well and a new well
HH-2. With regulatory approval having also been received from the
Environment Agency, the objective, once approval is granted by the
Oil and Gas Authority ("OGA"), is to carry out a 150 day EWT
programme comprising 30-40 days of testing at the Portland
sandstone reservoir and 30-40 days of further testing at each of
Kimmeridge limestone reservoirs KL-3 and KL-4.
As commercially viable initial flow rates were established by
the 2016 flow tests (equating to 1,688 barrels of oil per day
("bopd") in total, the 2018 testing programme's goal is to confirm
that HH-1's reservoirs are each connected to a commercially viable
oil volume, thereby enabling a declaration of commerciality to be
made. Testing will commence with the Portland reservoir which,
given the 323 bopd stable pumped rate achieved in 2016 and the 32
million barrels most likely OIP calculated by Xodus in 2017, is
considered a strong candidate for commercial viability.
At the end of the reporting year, we announced that we had
completed the acquisition of a 3.1 per cent shareholding interest
in HHDL held by Regency Mines Plc. This has cemented Alba's
position as the second largest shareholder in HHDL with 18.1 per
cent.
In prior years, the directors considered that it was not
possible to determine a reliable value for the Group's investment
in HHDL as the range of reasonable fair value measurements was
significant. However, by reference to recent HHDL share
transactions where there has been no substantial variation in the
range of values applied to those transactions, the directors judge
that it is possible to estimate a reliable fair value for the
investment (see note 9). This change in estimation technique has
resulted in a gain on investments in the year of GBP700,000.
Estimates are inherently subjective, as is the determination as to
whether a valuation can be reliably made, and hence whether the
investment should be held at cost or at valuation. The position
will be kept under review.
Brockham (Oil and Gas, United Kingdom)
Alba holds a 5% interest in Production Licence 235 ("PL 235"),
which comprises the onshore Brockham Oil Field, which is located
just to the north-west of the Horse Hill licences in the Weald
Basin in Surrey, southern England.
The key development at Brockham during the reporting year was
the completion of drilling at the BR-X4Z well, following which the
Operator, Angus Energy, announced that, following extensive
analysis of the results from the well, its intention was to bring
the Kimmeridge into production at the existing Brockham production
facility as soon as the necessary OGA approval was in place. The
BR-X4Z well, drilled to a total depth of 1,391m, was planned to
evaluate the Portland, Corallian and Kimmeridge formations at
Brockham, including an evaluation of the Kimmeridge reservoir that
had been demonstrated by the Horse Hill discovery 8 km to the
south.
The Operator confirmed that the preliminary results from the
BR-X4Z well confirm very similar thickness of reservoir and
properties to those reported at Horse Hill, with the gross
thickness of the Kimmeridge formation in BR-X4Z being some 385m.
The information obtained has confirmed not only evidence of natural
fractures in the two main limestones intervals previously tested at
Horse Hill, but also confirmed abundant natural fractures in
sections of interbedded shales and limestones between and below the
two main limestones. Around 200m of the reservoir has this
potential.
As reported below, in March 2018 production was resumed from
well BR-X2Y and we await the receipt of planning permission for the
continued surface activities of the production plant which is
required to enable production to commence from well BR-X4Z.
Greenland Mining Projects (Amitsoq, Thule Black Sands,
Inglefield Land, Melville Bay)
The principal activities in Greenland during the year have been
focused on further exploration work at our high grade Amitsoq
graphite project in southern Greenland, as well as undertaking a
maiden field programme at our new Thule Black Sands project in
north-west Greenland.
At Amitsoq, we were very pleased to have discovered a new
graphite zone during the summer 2017 field season. This new
discovery, which we have called Kalaaq, consists of multiple thick
graphite layers covering a distance of at least 460 metres. The
structural mapping our technical team carried out in the field last
summer has been used to help predict the thickness and distribution
of graphite at depth, which has enabled us to refine the location
of proposed drilling sites. The logical next steps at Amitsoq will
include carrying out a maiden drilling campaign to confirm
structure and thereafter to seek to define a maiden JORC
resource.
During the reporting year, Alba was awarded new exploration
licences at Thule Black Sands (ilmenite), Inglefield Land
(multi-commodity) and Melville Bay (iron ore). All the licences are
situated in north-west Greenland, meaning the Company can benefit
from logistical economies in its exploration work in that part of
Greenland. Our focus this coming field season in north-west
Greenland will be on pushing forward with our prospective Thule
Black Sands project, while at the same time undertaking a maiden
field campaign at Inglefield Land, targeting copper, cobalt and
gold, among other minerals and metals.
At Thule Black Sands, a maiden exploration programme was
completed towards the end of the reporting year. This work
confirmed the presence of active beach environments with heavy
mineral sands being actively deposited, along with raised beach
terraces containing heavy mineral sand. Following laboratory
testwork, it was confirmed that the samples taken from the project
showed a weighted average Total Heavy Mineral ("THM") content of
46.7%. Seven composite samples which were generated of the Heavy
Mineral Concentrate from the project showed an in-situ ilmenite
content averaging 10.0% and ranging from 5.7% to 14.9%.
Ilmenite-bearing sands were found to occur over a combined sampled
strike length of approximately 8.5 km. Mapping and aerial
photography of the project coastline showed the potential for
ilmenite-bearing sands over the full length of the project
coastline, being approximately 22 km in length.
Other mining projects (Ireland, Mauritania)
The exploration licence in the Limerick Basin is highly
prospective for zinc, lead and silver and is only 10 km away from
and part of the same target unit as the Pallas Green zinc
discovery. During the reporting year, we reported the results of a
microgravity study and portable XRF shallow soil sampling programme
at our Limerick project. The assay results confirmed four main
areas of anomalism. The most pronounced anomalism for
copper-silver-arsenic (Cu-Ag-As) is similar to that found at former
Gortdrum copper-silver (Cu-Ag) mine 25 km due east. Gortdrum was
mined for copper-silver-mercury (Cu-Ag-Hg) between 1967 and 1975,
producing 3.8 million tonnes containing 1.19% Cu and 25.1 g/t
Ag.
In relation to Mauritania, prior to the reporting year Alba
submitted an application to the Mauritanian authorities to take out
a new uranium exploration licence over a reduced area within the
original licence area. This new application area includes the
centre of the previously discovered and announced high-tenor
uranium anomalies. The application is currently being processed by
the Mauritanian authorities. If a new licence is issued, Alba and
its joint venture partner will then consider their options
regarding funding the next stage of exploration. The continued
development of the Mauritania exploration activities is dependent
on the grant of a new licence. Because of the continuing
uncertainty regarding precisely when the new licence will be
granted and, given the length of time that has elapsed to date, the
Directors have decided that it is prudent to impair the Company's
investment in the Mauritania project. This gives rise to a non-cash
charge in the year of GBP569,218 (2016 - GBPnil) bringing the
carrying value of the assets associated with the Mauritania uranium
project to nil.
Corporate
Our corporate activities in the year have been primarily focused
on securing the Company's interests in its projects, notably moving
to a 90 per cent holding at Amitsoq and exercising the Company's
option to earn 5 per cent of the Brockham Oil Field. In addition,
the Company undertook a single capital raising round during the
reporting year, raising just over GBP1 million.
The auditor's report for the year ended 30 November 2017
includes a paragraph relating to a material uncertainty as to
whether further funding can be obtained to enable the Group to
continue as a going concern and to continue its exploration
activities. However we have a reasonable expectation that the Group
will continue to be able to meet its commitments for the
foreseeable future, in particular by raising funds when required
from the equity capital markets.
The Company announced at the Annual General Meeting on 30 May
2017 that Michael Nott was to step down as CEO effective 1 June
2017. Mike has remained on the Board as a non-executive director
and continues to give Alba the benefit of his considerable
experience and wise counsel. The Company also strengthened its team
with the appointment in October 2017 of senior geologist Howard
Baker as Alba's Technical Director.
EVENTS AFTER THE REPORTING PERIOD
Acquisition of Stake in Clogau Gold Project
On 4 December 2017 Alba announced that it has acquired a 49 per
cent interest in Gold Mines of Wales Limited ("GMOW"), the ultimate
owner of the Clogau Gold Project situated within the Dolgellau Gold
Belt in Wales, United Kingdom (the "Clogau Project"). The Clogau
Project comprises the Clogau Gold Mine and includes a large number
of highly prospective gold targets and former gold workings within
a total option area of 106.94 km(2).
The Dolgellau Gold Belt has produced about 131,000 oz of gold,
by far the most of any region within the United Kingdom. Most of
this gold (81,000 oz) has been exploited from the historic
Clogau-St David's mine that lies within the Clogau Project area.
Alba's review of the Clogau Project concludes that there is high
potential to find unworked veins containing gold mineralisation of
similar grade to that known in historic mines in the area. The
focus will be on bringing the Clogau Gold Mine back into production
and also making a push into the regional exploration of the wider
Project area.
Very little contemporary gold-focused exploration has been
undertaken in the region. Based on the outcome of its review, Alba
has concluded that there is a high potential within the Clogau
Project area to find unworked veins containing gold mineralisation
of similar style and grade to that known in historic mines in the
area. This includes near-mine exploration targets and new regional
targets.
Significant work initiated and/or completed by Alba at Clogau
since acquisition includes a 3D geological model being constructed
for the entire licence area and existing mine workings, detailed
underground surveying being completed by means of 3D scanning, a
preliminary mine plan being generated and primary targets for
regional gold exploration being refined for the forthcoming field
programme.
Horse Hill (Oil and Gas, United Kingdom)
In March 2018 Alba announced that it had been informed by HHDL,
the operator of Horse Hill licenses PEDL137 and PEDL246, containing
the Horse Hill-1 ("HH-1") oil discovery, that Surrey County Council
had confirmed the discharge by HHDL of all of pre-commencement
planning conditions.
At the date of publication of these accounts, HHDL has received
the necessary permission from the Environment Agency and, to our
knowledge, is awaiting approval from the Oil and Gas Authority,
following which it will be able to commence the planned 150 day EWT
programme at Horse Hill.
Brockham (Oil and Gas, United Kingdom
In March 2018 Alba announced that the Operator, Angus Energy,
had confirmed the resumption of continuous production from the
Portland Reservoir of the BR-X2Y well at Brockham, at a production
rate of 21 bopd but that it expected this flow rate to increase to
roughly 35 bopd, albeit that a natural decline in production rates
is expected over time.
In addition, the Operator advised that it had submitted a
normalisation planning application to Surrey County Council ("SCC")
for the continued surface activities of the production plant
required for well BR-X4 (and its inclusive component BR-X4Z). The
Operator further advised that it was awaiting SCC's completion of
its process. As at the date of publication of these accounts, we
await a further update from the Operator.
Greenland Mining Projects (Amitsoq, Thule Black Sands,
Inglefield Land, Melville Bay)
After the end of the reporting year, we reported the geochemical
assays from the Amitsoq project in southern Greenland. This
included graphitic carbon content at the new Kalaaq discovery
averaging 25.62% carbon, with a maximum content of 29.0%
carbon.
In March 2018 we announced that Alba's Amitsoq graphite licence
had been renewed to Alba for a further five-year period and that
the Government of Greenland had granted a 12 month moratorium on
the exploration expenditure commitment attaching to the Amitsoq
licence. Further metallurgical testwork confirmed the ability to
produce a marketable grade concentrate from Amitsoq graphite.
At Thule Black Sands, Alba announced the completion of the
compilation by GEUS, the Geological Survey of Denmark and
Greenland, of a georeferenced orthophoto and digital elevation
model across the project area.
Alba announced after the end of the reporting year that it had
been granted a mineral exploration licence in Inglefield Land,
north-west Greenland, close to Alba's existing Inglefield licence
area. Extensive exploration has been carried out across Inglefield
Land by previous operators in the region as well as by GEUS, and
the historical data on Alba's combined Inglefield Land ground
includes assay results confirming the presence of copper, gold,
cobalt, vanadium and nickel. GEUS has identified that Inglefield
Land has the potential for copper-zinc volcanogenic massive
sulphide (VMS) deposits, which are associated with and created by
volcanic-associated hydrothermal events in submarine environments.
Previous extensive surface sampling has reported anomalous copper
(up to 1.39%), gold (up to 1.7g/t), cobalt (up to 0.16%), vanadium
and nickel.
Corporate
In March 2018, Alba announced two senior oil and gas
appointments. Sue Corrigan joined as Alba's Technical Consultant -
Oil & Gas. Ms Corrigan is a Geologist and Geoscientist with 40
years' industry experience in both Exploration and Development
geology. In addition, Feroz Sultan was appointed as Alba's Special
Adviser - Oil & Gas. Mr Feroz Sultan is a petroleum geologist
with over 40 years of diverse experience in the management,
exploration, development and production of oil and gas.
Also in March 2018, the Company announced that it had raised
GBP750,000 (before expenses) in a share placing.
I would like to thank all our shareholders for their continued
support.
George Frangeskides
Executive Chairman
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
For further information please contact:
Alba Mineral Resources plc
George Frangeskides, Executive Chairman +44 20 7264 4366
Cairn Financial Advisers LLP (Nomad)
James Caithie / Liam Murray +44 20 7213 0880
First Equity Limited (Broker)
Jason Robertson +44 20 7374 2212
Yellow Jersey PR (Financial PR/ IR)
Tim Thompson / Sophia Macleod / Henry Wilkinson +44 77 1071 8649
CONSOLIDATED INCOME STATEMENT
for the year ended 30 November 2017
2017 2016
GBP GBP
Revenue - -
Cost of sales - -
------------- -------------
Gross loss - -
Administrative expenses (649,125) (425,562)
Impairment of deferred exploration expenditure (569,218) -
Operating loss (1,218,343) (425,562)
Revaluation of investment 700,000 -
Finance costs - -
Loss before tax (518,343) (425,562)
Taxation - -
Loss for the year (518,343) (425,562)
============= =============
Attributable to:
Equity holders of the parent (227,699) (425,390)
Non-controlling interests (290,644) (172)
------------- -------------
(518,343) (425,562)
============= =============
Loss per ordinary share
Basic and diluted (0.012) pence (0.031) pence
============= =============
CONSOLIDATED STATEMENT OF COMPREHENSIVE
INCOME
for the year ended 30 November 2017
2017 2016
GBP GBP
Loss after tax (518,343) (425,562)
Items that may subsequently be reclassified
to profit or loss:
* Foreign exchange movements 4,526 5,190
Total comprehensive loss (513,817) (420,372)
========= =========
Total comprehensive loss attributable
to:
Equity holders of the parent (223,173) (420,200)
Non-controlling interests (290,644) (172)
(513,817) (420,372)
========= =========
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
as at 30 November 2017
2017 2016
GBP GBP
Non-current assets
Intangible fixed assets 1,145,336 1,383,895
Investments 3,619,465 2,286,315
Available for sale assets 14,335 56,285
Total non-current assets 4,779,136 3,726,495
----------- -----------
Current assets
Trade and other receivables 35,276 15,261
Cash and cash equivalents 626,939 668,340
----------- -----------
Total current assets 662,215 683,601
----------- -----------
Current liabilities
Trade and other payables (180,014) (377,212)
Financial liabilities (253,073) (253,073)
Total current liabilities (433,087) (630,285)
----------- -----------
Net assets 5,008,264 3,779,811
=========== ===========
Capital and reserves
Called up share capital 3,086,246 2,654,703
Share premium account 4,655,702 3,472,671
Warrant reserve 231,969 546,098
Retained losses (3,095,120) (3,309,246)
Merger reserve 200,000 200,000
Foreign currency reserve 193,685 189,159
----------- -----------
Equity attributable to equity holders
of the parent 5,272,482 3,753,385
Non-controlling interests (264,218) 26,426
Total equity 5,008,264 3,779,811
=========== ===========
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the year ended 30 November 2017
Share Share Warrant Profit and Merger Foreign Attributable Non Total
capital premium reserve loss reserve currency to equity controlling
reserve holders interest
of parents
GBP GBP GBP GBP GBP GBP GBP GBP GBP
At 1 December
2015 1,993,171 2,586,286 446,291 (2,883,856) 200,000 183,969 2,525,861 26,598 2,552,459
--------- --------- --------- ----------- ------- -------- ------------ ----------- ---------
Loss for the
period - - - (425,390) - - (425,390) (172) (425,562)
Translation
differences - - - - - 5,190 5,190 - 5,190
--------- --------- --------- ----------- ------- -------- ------------ ----------- ---------
Comprehensive
loss for the
period - - - (425,390) - 5,190 (420,200) (172) (420,372)
--------- --------- --------- ----------- ------- -------- ------------ ----------- ---------
Shares and
warrants
issued 661,532 958,069 - - - - 1,619,601 - 1,619,601
Share issue
costs - (71,684) - - - - (71,684) - (71,684)
Equity settled
share based
payments - - 99,807 - - - 99,807 - 99,807
At 30 November
2016 2,654,703 3,472,671 546,098 (3,309,246) 200,000 189,159 3,753,385 26,426 3,779,811
--------- --------- --------- ----------- ------- -------- ------------ ----------- ---------
Loss for the
period - - - (227,699) - - (227,699) (290,644) (518,343)
Translation
differences - - - - - 4,526 4,526 - 4,526
--------- --------- --------- ----------- ------- -------- ------------ ----------- ---------
Comprehensive
loss for the
period - - (227,699) - 4,526 (223,173) (290,644) (513,817)
--------- --------- --------- ----------- ------- -------- ------------ ----------- ---------
Shares issued 431,543 1,245,931 - - - - 1,677,474 - 1,677,474
Share issue
costs - (62,900) - - - - (62,900) - (62,900)
Equity settled
share based
payments - - 127,696 - - - 127,696 - 127,696
Transfer on
expiry of
warrants - - (441,825) 441,825 - - - - -
At 30 November
2017 3,086,246 4,655,702 231,969 (3,095,120) 200,000 193,685 5,272,482 (264,218) 5,008,264
--------- --------- --------- ----------- ------- -------- ------------ ----------- ---------
CONSOLIDATED CASH FLOW STATEMENT
for the year ended 30 November 2017
2017 2016
GBP GBP
Cash flows from operating activities
Operating loss (1,218,343) (425,562)
Consulting fees settled in shares 65,000 60,000
Share option charge 127,695 99,807
Provision for impairment 611,168 -
Foreign exchange revaluation adjustment 4,526 5,190
Increase/(decrease) in creditors 23,702 75,312
Decrease/(increase) in debtors (20,015) 81,682
Net cash used in operating activities (406,267) (103,571)
----------- ---------
Cash flows from investing activities
Payments for deferred exploration expenditure (356,616) (380,121)
Payments for available for sale assets - (56,285)
Investments (449,049) (433,494)
Net cash used in investing activities (805,665) (869,990)
----------- ---------
Cash flows from financing activities
Proceeds from the issue of shares and warrants 1,233,431 1,425,001
Costs of issue (62,900) (71,684)
Net cash generated from financing activities 1,170,531 1,353,317
----------- ---------
Net increase in cash and cash equivalents (41,401) 379,846
Cash and cash equivalents at beginning of period 668,340 288,494
Cash and cash equivalents at end of year 626,939 668,340
=========== =========
Non-cash transactions
Significant non cash transactions related to the purchase of
investments of GBP315,000 (2016 - GBP134,600), the purchase of
deferred development expenditure of GBP64,043 (2016 - GBPnil) and
consulting fees of GBP65,000 (2016 - GBP60,000) which were settled
by way of the issue of shares.
Accruals includes capital items of GBP35,461 (2016 -
GBP220,900).
NOTES
1. BASIS OF PREPARATION
Alba Mineral Resources plc is a public limited company
incorporated and domiciled in England & Wales, whose shares are
publicly traded on the AIM market of the London Stock Exchange plc.
The registered office address is 6th Floor 60 Gracechurch Street,
London, United Kingdom, EC3V 0HR.
The financial information set out in this announcement does not
constitute the statutory accounts of the Group for the years ended
30 November 2017 or 30 November 2016. The financial information has
been extracted from the statutory accounts of the Group for the
years ended 30 November 2017 and 30 November 2016.
The auditor, Nexia Smith & Williamson, has reported on the
statutory accounts for the years ended 30 November 2017 and 2016;
the audit reports were unqualified and did not contain statements
under either section 498(2) or 498(3) of the Companies Act 2006.
However, in their report on the statutory accounts for both the
year ended 31 November 2017 and 30 November 2016 the auditor drew
attention to the material uncertainty which exists with respect to
the ability of the group to continue as a going concern, as
explained below In addition, in their report for the year ended 30
November 2016, the auditor drew attention to the uncertainties
relating to the carrying value of the group's deferred exploration
expenditure should adequate funding not be available to continue
exploration and, in respect of the Mauritania exploration, should a
new licence not be granted.
The consolidated financial statements have been prepared on the
historical cost basis, save for the revaluation of certain
financial assets.
There were no changes to the Group's accounting policies for the
year ended 30 November 2017 as compared to those published in the
statutory financial statements for the year ended 30 November 2016
other than that relating to the group's investment in Horse Hill
Developments Limited. The directors had previously considered that
the fair value of the investment could not be reliably determined
and so recorded the investment at cost. For the year ended 30
November 2017, the investment is recorded at its fair value, as the
directors consider that a reliable estimate of that value is now
available.
This preliminary announcement was approved by the Board on 26
April 2018.
2. GOING CONCERN
Based on financial projections prepared by the directors, the
Group's current cash resources are insufficient to enable the Group
to meet its recurring outgoings and projected exploration
expenditure for the entirety of the next twelve months. However,
the directors have a reasonable expectation that the Group will
continue to be able to meet its commitments for the foreseeable
future by raising funds when required from the equity capital
markets. The Company may also consider future joint venture funding
arrangements in order to share the costs of the development of its
exploration assets, or to consider divesting of certain of its
assets and realising cash proceeds in that way in order to support
the balance of its exploration and investment portfolio, though
that is not currently the Company's preferred route.
In addition, these financial projections take no account of any
revenues to be directly received by the Company as a result of oil
production at the Brockham oil field or any revenues which may be
received by Horse Hill Developments Limited (HHDL) as a result of
production testing at Horse Hill, and which would reduce the
commitments of the shareholders of HHDL, including the Company.
The directors continue to adopt the going concern basis of
accounting in preparing the financial statements, but note that
there is a material uncertainty over the ability of the Company to
fund the recurring and projected expenditure, including development
of the Group's exploration assets. If the Company is unable to
raise necessary funds, the ability of the Company to continue as a
going concern would be in significant doubt and it may be unable to
realise its assets and discharge its liabilities in the normal
course of business. In particular, the inability to fund the
continued development of the Group's exploration assets may result
in them becoming impaired and any failure to contribute its share
of future exploration and development activities in respect of the
oil and gas investments would result in the dilution of the Group's
interests in those assets.
3. LOSS PER SHARE
Basic loss per share is calculated by dividing the loss
attributed to ordinary shareholders of GBP227,699 (2016: GBP425,390
loss) by the weighted average number of shares of 1,949,148,404
(2016: 1,373,008,189) in issue during the year. The diluted loss
per share calculation is identical to that used for basic loss per
share as warrants are not dilutive due to the losses incurred
during the current and prior periods.
4. REPORTS AND ACCOUNTS
The statutory accounts for the year ended 30 November 2017 were
approved by the board of directors on 26 April 2018, will be sent
to shareholders of the Company in due course and will be delivered
to the Registrar of Companies following the Company's Annual
General Meeting. The report and accounts will also be made
available on the Company's website: www.albamineralresources.com.
The statutory accounts for the year ended 30 November 2016 have
been delivered to the Registrar of Companies.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR EADLKAEEPEFF
(END) Dow Jones Newswires
April 26, 2018 09:30 ET (13:30 GMT)
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