TIDMNBR
RNS Number : 4028Q
Namibian Resources PLC
29 August 2014
29 August 2014
NAMIBIAN RESOURCES PLC
RESULTS FOR THE YEAR ENDED 28 FEBRUARY 2014
Namibian Resources plc ("the Company") is pleased to present its
results for the year ended 28 February 2014. A copy of the annual
report and accounts will be posted to shareholders today and will
also be available on the Company's website,
http://www.namibianresources.com/
Together with the annual report and accounts, the Company is
posting to shareholders a notice of its annual general meeting
which will take place at 11 am on 29 September 2014 at Craven
House, West Street, Farnham, Surrey, GU9 7EN.
Enquiries:
Brian Moritz, Tel: 01252 733683
Chairman, Namibian Resources Plc
Colin Aaronson/Jen Clarke Tel: 0207 383 5100
Grant Thornton UK LLP, Nominated Adviser
CHAIRMAN'S STATEMENT
This is my first statement since Lord Sheppard and Tony Carlton
resigned as directors of the Company and I took over as chairman. I
would like to thank both of them for their work on behalf of the
Company.
Agreement with J&J Group
On 9 May 2013, the Company signed a management agreement with
Southern Goshawk Resources (Pty) Limited ("SG"), the natural
resources arm of the J&J Group, a South African based
investment holding and management company. Under this agreement SG
was to manage the Company's mining assets in Southern Africa,
initially the Sonnberg diamond mine in Namibia, and subsequently
other mining in Southern Africa, and provide the services of David
Johnson and Mike Solomon as directors. Progress on bringing in new
assets was extremely slow, and David Johnson and Mike Solomon have
now left SG, which cannot therefore provide their services. It has
therefore been agreed that the management agreement be cancelled,
including any provisions for issuing new shares to SG. David
Johnson and Mike Solomon remain directors of the Company and are
increasing their efforts to identify projects to be brought into
the Company.
Operations
Production at the Group's Sonnberg diamond mine has remained
suspended. Following a detailed review of the economic viability,
the directors have decided that the cost of reopening the mine and
upgrading equipment at Sonnberg is not justified. In these
circumstances a decision has been made to fully impair the residual
value of the intangible assets in this period. The refurbishment of
the plant has now been completed, which has underpinned its value.
A decision can now be made as to future utilization, either by sale
or in another project at a new location. In the latter case the
directors believe that plant may be valued at materially more than
the GBP260,264 which is its current carrying value, and represents
the amount for which the directors believe it could reasonably be
sold. The agreement under which Sonnberg previously mined is open
to differing interpretations regarding rehabilitation costs.
Sonnberg has contributed a percentage of the value of diamonds
mined to a fund held by Namdeb, but the adequacy of this fund is
uncertain. The directors have therefore provided a further
GBP70,000 to cover this contingent liability.
Financial
During the period the Company reports a consolidated loss from
operating activities, before and after tax, of GBP531,758 (2013
loss: GBP1,318,332), shown after the impairment charge of
GBP185,887 (2013: GBP1,009,722) and the provision for
rehabilitation of GBP70,000 referred to above. After adjusting for
exchange differences, the total comprehensive loss for the period,
before and after tax, was GBP685,908 (2013 loss: GBP1,515,804).
During the year the directors continued to provide finance to the
Company by way of loans. Since the year end, the Company has raised
GBP146,600 by a placing of new shares. Separate financing will be
sought for new projects, which is likely to be by way of both
equity and project finance.
Future prospects
The slow progress on expansion is very much to be regretted.
However, with the cancellation of the Southern Goshawk agreement
and the direct involvement of the South African based directors, I
believe that the Company is now well placed to move forward. In
addition to coal projects, the directors are evaluating a small
copper project in Northern Cape Province, South Africa, which could
bring early positive cash flow as well as providing a stepping
stone to other copper projects in that area.
Brian Moritz (Chairman)
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 28 FEBRUARY 2014
2014 2013
GBP GBP
Continuing operations
Revenue - 57,046
Cost of sales - (131,772)
---------- ------------
Gross loss - (74,726)
Administrative expenses (529,752) (1,243,433)
---------- ------------
Loss from operating activities (529,752) (1,318,159)
Finance
costs (2,006) (173)
Loss before tax (531,758) (1,318,332)
Taxation - -
---------- ------------
Loss for the year from operating
activities (531,758) (1,318,332)
Exchange translation on foreign operations (154,150) (197,472)
Total comprehensive expense for the
year (685,908) (1,515,804)
========== ============
Loss per ordinary share (pence)
Basic and diluted (0.86) (2.13)
========== ============
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 28 FEBRUARY 2014
2014 2013
GBP GBP
Non-current assets
Property, plant and equipment 260,264 437,124
Intangible assets - 200,000
260,264 637,124
------------ ------------
Current assets
Inventories - 2,030
Trade and other receivables 49,048 55,060
Cash and cash equivalents 7,689 4,307
------------ ------------
56,737 61,397
------------ ------------
Total assets 317,001 698,521
============ ============
Equity
Share capital 4,211,235 4,211,235
Share premium 1,027,317 1,027,317
Currency translation reserve 158,491 306,355
Retained deficit (5,894,867) (5,356,823)
------------ ------------
(497,824) 188,084
Current liabilities
Trade and other payables 744,825 510,437
Provisions 70,000 -
------------ ------------
814,825 510,437
------------ ------------
Total equity and liabilities 317,001 698,521
============ ============
The financial statements of Namibian Resources plc were approved
by the Board of Directors and authorised for issue on 29 August
2014. They were signed on its behalf by Brian Moritz.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 28 FEBRUARY 2014
Currency
Share Share translation Retained
capital premium reserve deficit Total
GBP GBP GBP GBP GBP
Balance at 28
February
2012 4,211,235 1,027,317 503,827 (4,038,491) 1,703,888
Loss for the
financial
year - - - (1,318,332) (1,318,332)
Foreign exchange
difference - - (197,472) - (197,472)
---------- ---------- ----------- ------------ ------------
Total comprehensive
expense
for the year - - (197,472) (1,318,332) (1,515,804)
Balance at 28
February
2013 4,211,235 1,027,317 306,355 (5,356,823) 188,084
Loss for the
financial
year - - - (531,758) (531,758)
Foreign exchange
difference - - (147,864) (6,286) (154,150)
---------- ---------- ----------- ------------ ------------
Total comprehensive
expense
for the year - - (147,864) (538,044) (685,908)
Balance at 28
February
2014 4,211,235 1,027,317 158,491 (5,894,867) (497,824)
========== ========== =========== ============ ============
The currency translation reserve comprises all foreign currency
differences arising from the translation of the financial
statements of the foreign operation.
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 28 FEBRUARY 2014
2014 2013
GBP GBP
Cash flows from operating
activities
Loss for the year (685,908) (1,318,332)
Depreciation 1,301 35,178
Amortisation of intangible
assets 53,891 53,891
Impairment of non-current
assets 185,887 1,009,722
Foreign exchange differences 147,864 -
Finance costs 2,006 173
(294,959) (219,368)
Changes in:
- inventories 1,730 2,007
- trade and other receivables (8,658) (7,106)
- trade and other payables 237,344 213,661
- provision 70,000 -
Cash from/(used in) operating
activities 5,457 (10,806)
---------- ------------
Cash flows from investing
activities
Interest paid (2,006) (173)
Net cash flows from investing
activities (2,006) (173)
---------- ------------
Net increase/(decrease) in
cash and cash equivalents 3,451 (10,979)
Cash and cash equivalents at beginning
of year 4,307 15,301
Effect of exchange rate fluctuations
on cash held (69) (15)
Cash and cash equivalents at 28
February 7,689 4,307
========== ============
NOTES
1 General information
The financial information set out above does not comprise
statutory accounts for the purposes of Section 434 of Companies Act
2006.
The balance sheet at 28 February 2014, the income statement and
the cash flow statement for the year then ended have been extracted
from the Company's statutory financial statements upon which the
auditor's opinion is unqualified and does not include any statement
under Section 498 of the Companies Act 2006.
2 Basis of preparation
The consolidated financial statements have been prepared in
accordance with International Financial Reporting Standards
('IFRS') as issued by the International Accounting Standards Board
and as adopted by the European Union..
3 Going concern
Since the end of the year, the group has raised approximately
GBP146,600 subscribed for new shares in the Company. Taking this
into account, and after making enquiries, the directors have formed
a judgement that, as at the date of approving the financial
statements, there is a reasonable expectation that the Group and
the Company have adequate resources to continue in operational
existence for the foreseeable future. For this reason, the
directors have adopted the going concern basis in preparing the
accounts. In forming this judgement the directors have taken
account of there being no outstanding liabilities other than in the
normal course of business. There are no borrowings other than from
the directors, who have continued to provide loans for working
capital. The Company will seek additional finance to expand its
operations. The directors believe that the Company and the Group
will be able to meet its liabilities as they fall due.
4 Loss per share
The calculation of loss per share at 28 February 2014 is based
on the loss for the year from operating activities attributable to
ordinary shareholders of GBP531,758 (2013: GBP1,318,332), and a
weighted average number of ordinary shares in issue of 61,821,352
(2013: 61,821,352).
This information is provided by RNS
The company news service from the London Stock Exchange
END
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