RNS Number : 9084J
Kiwara PLC
11 December 2008
JSE - KWR
AIM - KIW
ISIN - GB0007702953
11 December 2008
KIWARA PLC
("Kiwara" or "the Company")
Chairman's Statement and Interim Results
for the period ended 30 September 2008
The Board of Kiwara, the AIM quoted and JSE listed mining exploration and development company, is pleased to announce interim results
for the period ended 30 September 2008.
Highlights
* Dual listed on the main board of the Johannesburg Stock Exchange on 3 April 2008.
* Rand 15 million (�1 million) raised through the issue of 5 million ordinary shares of 1p each at Rand 3 per share to New Africa
Mining Fund ("NAMF").
* Kiwara increased its interest in joint venture company, Kalumbila Minerals Limited ("Kalumbila Minerals") from 75% to 80%.
* Kawako Project ("Kawako") - initial drilling intersected exceptional nickel grades. Follow up programme initiated.
* Kalumbila Project ("Kalumbila") - results of ongoing drill programme continue to show the potential for a major open pittable bulk
copper target with important nickel and cobalt credits.
* Resource estimation is in progress that will culminate in the publication of a SAMREC compliant Mineral Resource estimate.
For further information, please contact:
Kiwara Plc Tel: +44 (0)207 581 4477
Colin Bird, Chairman
Peter Vivian-Neal, Chief Executive Officer Tel: +260 (0) 211 293899
Investec Bank, Johannesburg
Robert Smith / Gavin Hall Tel: +27 (0) 11 286 7326
Investec Bank (UK) Limited Tel: +44 (0) 20 7597 5000
Gerard Kisbey-Green / Jan Bosch
Bishopsgate Communications Ltd Tel: +44 (0)20 7562 3366
Nick Rome
Chairman's Statement
Dear Shareholders,
Operations
During the six month period to 30 September 2008, the Company has made very significant progress, achieving exceptional results from its
exploration activities within the Zambian prospecting licence 267 ("PL267") in North West Zambia.
The Company is particularly pleased with the initial results obtained from Kawako; which include a 53.50m intersection assaying at 1.07%
nickel ("Ni") starting 29.50m from surface in borehole KW1, and two zones, 5.58m assaying 3.20%Ni from 89.20m and 10.80m assaying 6.73%Ni
from 104.30m in borehole KW2. These grades are very high by industry norms and if deposit strike length and down-dip continuity are
confirmed, this project may result in a significant nickel discovery. Soil geochemistry also shows the presence of copper mineralisation
which will be further investigated.
Results of the drill programme at Kalumbila continue to report geological continuity along the so-far determined 8.2km strike. Typical
intersections include 46.00m assaying 1.39% copper ("Cu") from 140m (borehole L33) and 42.40m assaying 0.86%Cu from 164m (borehole L35).
Nickel, cobalt and uranium mineralisation have also been reported. The continuing programme has focused on near surface potential, which if
realised, could make Kalumbila an open pittable multi base metal deposit, a preferred target of the mining industry. A SAMREC compliant
Mineral Resource estimate by an independent Competent Person is in preparation and will be published shortly.
The Company clearly has outstanding prospects since its initial discoveries indicate significant mineralised strike length and
proximity to surface which may provide Kiwara with the opportunity to report considerable, easy to mine base metal mineral resources. Both
Kawako and Kalumbila show potential for world class mining opportunities.
Financial Review
The Pre-tax loss for the six months to 30 September 2008 was �172,483 (2007 - profit of �265,078). This figure includes a one-off
charge of �336,347 attributable to Kiwara's listing on the full board of the Johannesburg Stock Exchange. The consolidated income statement
also includes an exchange gain of �466,555 which relates to the US$ denominated inter-company loan due to Kiwara from its Zambian based
subsidiary, Kiwara Zambia Limited ("Kiwara Zambia").
Cumulative exploration expenditure incurred on Prospecting Licence 267 amounted to �1,864,413 at 30 September 2008. This figure exceeds
the Company's commitment to have spent a cumulative US$2.2 million prior to November 2009 and accordingly, Kiwara has exercised its earn-in
right to an additional 5% of the joint venture company, Kalumbila Minerals, which holds PL267. This additional interest increases Kiwara's
holding in Kalumbila Minerals from 75% to 80% effective from 16 October 2008.
The Company raised Rand 15 million through the issue of 5 million ordinary shares of 1p each at Rand 3 per share to New Africa Mining
Fund ("NAMF"), one of the original investors in Kiwara. This transaction included the issue of a two year option to NAMF to subscribe for a
further 2.5 million ordinary shares of 1p each at Rand 4 per share. The placement was approved by shareholders at an Extraordinary General
Meeting held on 19 September 2008.
The global economic slowdown had led to a significant decline in both the price of base metals and in the market capitalisation of
almost all mining and exploration companies. This is based on an anticipated Chinese economic slowdown, which I believe should be short
lived. The Kiwara mission is to identify major deposits of nickel and copper and we appear to be making good progress towards this
objective.
The location, favourable geology and exploration results to date make Kiwara an exciting emerging base metal company, with many value
add possibilities for our shareholders.
Colin Bird
Chairman
10 December 2008
Consolidated Income Statement Notes Six months ended Year ended
30 September 30 September 31 March
2008Unaudited� 2007Unaudited� 2008
Audited�
Revenue
Other income - - -
Administration expenditure 4 (662,007) (274,122) (801,165)
Loss from operations (662,007) (274,122) (801,165)
Finance income 22,969 16,891 44,463
Finance cost - - (41)
Foreign exchange gain 466,555 - 88,146
Other income - 522,309 522,309
Profit/(loss) before income (172,483) 265,078 (146,288)
tax expense
Income tax expense - - (86)
Profit/(loss) for the period (172,483) 265,078 (146,374)
after income tax expense
Loss attributable to minority 25,448 20,310 59,676
interest
Profit/(loss) attributable to (147,035) 285,388 (86,698)
members of Kiwara Plc
Number of shares in issue 5 165,485,010 141,935,010 160,485,010
Weighted average number of 160,594,300 68,077,087 111,815,611
shares in issue
Diluted weighted average 161,105,130 69,778,328 112,527,988
number of shares in issue
Basic profit/(loss) per share 3 (0.09) 0.42 (0.08)
(pence)
Headline profit/(loss) per 3 (0.09) 0.42 (0.08)
share (pence)
Diluted profit/(loss) per 3 (0.09) 0.41 (0.08)
share (pence)
Diluted headline profit/(loss) 3 (0.09) 0.41 (0.08)
per share (pence)
Consolidated Balance Sheet
Notes 30 September 2008 30 September 31 March 2008
Unaudited� 2007Unaudited� Audited�
Assets
Non-current assets
Property, plant and equipment 78,017 92,170 96,691
Intangible assets 14,224,160 8,168,524 13,069,106
Total non-current assets 14,302,177 8,260,694 13,165,797
Current assets
Trade and other receivables 100,655 164,133 41,158
Cash and cash equivalents 1,292,989 1,612,378 1,824,099
Prepaid expenses and other 24,018 2,268 29,189
current assets
Total current assets 1,417,662 1,778,779 1,894,446
Total assets 15,719,839 10,039,473 15,060,243
Current liabilities
Trade and other payables 340,284 22,876 135,760
Total current liabilities 340,284 22,876 135,760
Total liabilities 340,284 22,876 135,760
Net current assets 1,077,378 1,755,903 1,758,686
Net assets 15,379,555 10,016,597 14,924,483
Equity
Share capital 5 6,273,752 6,038,252 6,223,752
Share premium 5 8,738,664 3,390,704 7,815,204
Share based payment reserve 207,474 - 200,885
Currency translation reserves (397,192) (8,571) 12,744
Other reserves 6,790,000 6,790,000 6,790,000
Retained earnings (6,866,987) (6,347,866) (6,719,952)
Equity attributable to equity 14,745,711 9,862,519 14,322,633
holders of the company
Minority interests 633,844 154,078 601,850
Total equity 15,379,555 10,016,597 14,924,483
Statement of Changes in Equity
Attributable to Equity Holders of
the Company Minority Interests Total
Share Capital Share Premium Share based payment Currency Other reserves
Retained earnings
reserve translation reserves
� � � � �
� � �
Balance at 1 April 2007 4,948,252 2,310,704 - - -
(6,633,254) - 625,702
Issue of share capital 1,090,000 - - - -
- - 1,090,000
Premium on issue of share - 1,080,000 - - -
- - 1,080,000
capital
Net profit/(loss) for the - - - - -
285,388 (20,310) 265,078
period
Addition in minority interest - - - - -
- 174,388 174,388
Currency translation - - - (8,571) -
- - (8,571)
adjustment
Other reserves - - - - 6,790,000
- - 6,790,000
Balance at 30 September 2007 6,038,252 3,390,704 - (8,571) 6,790,000
(6,347,866) 154,078 10,016,597
Issue of share capital 185,500 - - - -
- - 185,500
Premium on issue of share - 4,424,500 - - -
- - 4,424,500
capital
Net profit/(loss) for the - - - - -
(372,086) (39,366) (411,452)
period
Addition in minority interest - - - - -
- 487,138 487,138
Share based payment charge - - 200,885 - -
- - 200,885
Currency translation - - - 21,315 -
- - 21,315
adjustment
Other reserves - - - - -
- - -
Balance at 31 6,223,752 7,815,204 200,885 12,744 6,790,000
(6,719,952) 601,850 14,924,483
March 2008
Issue of share capital 50,000 - - - -
- - 50,000
Premium on issue of share - 950,000 - - -
- - 950,000
capital
Costs on issue of shares - (26,540) - - -
- - (26,540)
Net profit/(loss) for the - - - - -
(147,035) (25,448) (172,483)
period
Addition in minority interest - - - - -
- 57,442 57,442
Share based payment charge - - 6,589 - -
- - 6,589
Currency translation - - - (409,936) -
- - (409,936)
adjustment
Other reserves - - - - -
- - -
Balance at 30 September 2008 6,273,752 8,738,664 207,474 (397,192) 6,790,000
(6,866,987) 633,844 15,379,555
Cash flow statement Six months ended Year ended
30 September 2008 30 September 2007 31 March 2008
Unaudited� Unaudited� Audited�
Cash flow from operating activities
Profit/(loss) before income tax and (172,483) 265,078 (146,288)
minority interest
Depreciation 17,120 6,695 47,409
Profit on disposal of property, plant and (5,014) - -
equipment
(Increase)/decrease in trade and other (59,497) (56,213) (41,158)
receivables
(Increase)/decrease in prepaid expenses
and other current assets 5,171 (2,268) (29,189)
Increase/(decrease) in trade and other 204,524 (126,443) (10,468)
payables
Increase/(decrease) in currency (429,722) - 13,061
translation reserves
Share based payments 6,589 - 200,885
Interest received (22,969) (16,891) (44,463)
Negative goodwill - (522,309) (522,309)
Net cash outflow from operating activities (456,281) (452,351) (532,520)
Cash flows utilised by investing
activities
Acquisition of subsidiaries, net of cash - (51,704) (102,189)
acquired
Purchase of intangible fixed assets (1,086,103) (359,713) (709,359)
Purchase of property, plant and equipment (881) (98,865) (144,416)
Proceeds from disposal of property, plant 15,726 - -
and equipment
Interest received 22,969 16,891 44,463
Net cash outflow from investing activities (1,048,289) (493,391) (911,501)
Cash flow from financing activities
Issue of shares, net of costs of issuance 973,460 1,786,277 2,496,277
Net cash inflow from financing activities 973,460 1,786,277 2,496,277
Net increase/(decrease) in cash and cash (531,110) 840,535 1,052,256
equivalents
Cash and cash equivalents at the beginning 1,824,099 771,843 771,843
of the year
Cash and cash equivalents at the end of 1,292,989 1,612,378 1,824,099
the year
Notes to the Financial Statements
1. The unaudited interim financial statements for the six months ended 30 September 2008 have been prepared and are presented in
accordance with International Accounting Standards 34, Interim Financial Reporting. The accounting policies and methods of computation have
been applied consistently throughout the Group and are consistent with those for the financial year ended 31 March 2008.
2. Segmental Analysis
Business segments
The Group's only business segment is the exploration and development of nickel-cobalt copper and uranium.
Geographical segments
An analysis of the profit/(loss) on ordinary activities before taxation and minority interest, net assets and exploration expenditure by
geographical area is given below.
Six months ended Year ended
30 September 2008 30 September 2007 31 March
2008
� � �
Profit/(loss) on ordinary
activities before income tax
and minority interest
United Kingdom (93,436) 316,764 23,562
Zambia (79,047) (51,686) (169,850)
(172,483) 265,078 (146,288)
Net assets by location
United Kingdom 13,551,772 9,161,133 14,433,918
Zambia 1,827,783 855,463 490,565
15,379,555 10,016,597 14,924,483
Exploration expenditure
Zambia 1,864,413 359,713 709,359
Total exploration expenditure 1,864,413 359,713 709,359
3. The calculation of the basic loss per share and headline loss per share is based on the loss of �147,035 for the period ended 30
September 2008 divided by the weighted average number of shares being 160,594,300 in issue during the year.
The diluted loss per share and diluted headline loss per share is based on the loss of �147,035 for the period ended 30 September 2008
divided by the weighted average number of shares and potential shares being 161,105,130 in issue during the year.
4. On 3 April 2008, Kiwara Plc was listed on the full board of the Johannesburg Stock Exchange (JSE Ltd). Total costs associated with
the listing on the Johannesburg Stock Exchange amounted to �336,347 and are included in the consolidated income statement for the period
ended 30 September 2008.
5. The Group issued 5,000,000 ordinary shares of 1 p each at a strike price of Rand 3 per share to New Africa Mining Fund ("NAMF") in
accordance with the agreement entered into with NAMF on 8 July 2008. The Group raised �973,460 net of cost of issuance of �26,540.
6. Under the terms of its Joint Venture agreement with LM Engineering Ltd on Prospecting Licence 267 and following exploration
expenditure of US$2.2 million, the Company exercised its option to increase its shareholding in Kalumbila Minerals Ltd by 5% to an 80%
holding in its Zambian based subsidiary on 16 October 2008.
7. Copies of the interim report are available to the public free of charge from the Company at 4th Floor, 2 Cromwell Place, South
Kensington, London, SW7 2JE, during normal office hours for 30 days from the date of this report.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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