TIDMSVE
RNS Number : 7113B
Starvest PLC
06 June 2023
6 June 2023
Half-year report - six months ended 31 March 2023
Chairman's statement
Over the six months to 31 March 2023, Starvest (the "Company")
benefited somewhat from the resilience of the natural resources
sector in an atmosphere of continued inflation and economic effects
of conflict in eastern Europe. Commodity prices, including gold,
remain ed relatively high, providing a solid foundation for our
investee companies.
The Company's portfolio value and net asset value increased 5%
and 3% respectively during the six months to 31 March 2023, since
the Company's financial year-end. Our discount to net asset value
was 31% on 31 March 2023, compared to a discount of 29% on 30
September 2022.
The natural resources sector is forecast to continue to make
gains in the post-pandemic economic recovery period. We also expect
the sector to benefit from large-scale infrastructure and
climate-focused projects at the forefront of government spending
plans and private sector investment.
As part of routine operations, the Board regularly reviews its
portfolio positions and may make adjustments to its holdings to
take advantage of market conditions. The Board is currently
considering opportunities more likely to better align the intrinsic
value of the Company's portfolio with shareholder interests.
During the last six months, Greatland Gold (LON:GGP), which
makes up substantially the largest part of our portfolio value,
advanced its Paterson projects. Havieron, a joint venture with
Newcrest Mining, continued to increase the resource base at the
project through surface drilling, and decline development has
accelerated over the period; a definitive feasibility study is
expected before the end of calendar 2023. During May 2023, Havieron
joint venture partner Newcrest Mining accepted a US$19.1 billion
buyout offer from the world's largest gold miner, Newmont. We
believe this will bring a positive new dynamic to the Paterson
project area over the coming months. Greatland is also
concentrating on early-stage exploration targets within its other
licences and has reported significant drill results in 100%-owned
Rudall tenement, as well as strong mineralisation pathfinders at
100%-owned Scallywag, and a new joint venture agreement with Rio
Tinto allowing Greatland to explore an additional 1,884sq km of
prospective terrain in the Paterson region.
Ariana Resources (LON:AAU) continues to focus on exploration and
development in south-eastern Europe, in particular with work on the
Tavsan mine infrastructure in Türkiye. Its 75%-held subsidiary,
West Tethyan Resources, signed an earn-in agreement on a gold
project in Kosova. West Tethyan currently has a strategic agreement
with Ariana and Newmont stemming from the five-year, US$2.5 million
strategic alliance Ariana has with Newmont.
Following the release of a definitive feasibility study in late
November 2022, Cora Gold (LON:CORA) completed a capital raise of
approximately US$20m in ordinary shares and convertible loans in
early March 2023. Funds will be used primarily to commence
development of the Company's flagship Sanankoro Gold Project in
southern Mali.
Kefi Minerals (LON:KEFI) continued with development of the Tulu
Kapi gold mine in Ethiopia and remains on target to start full
production during 2023, with full financing near completion. Kefi
has also made significant advances on its Saudi Arabia projects and
expects to complete a definitive feasibility study this year at the
Jabil Qitman gold project; and a pre-feasibility study is near
completion at its Hawiah copper-gold project.
Other investee companies continue their efforts as well. Oracle
Power (LON:ORCP) has recently revised its strategy to focus more on
green hydrogen energy in Pakistan, advancing plans for the project
with strategic partners in relation to land, fuel cell development
and offtake agreements. It also recently signed an MoU to continue
its coal power station plans in Pakistan; as well as entering a
farm-in agreement on its gold exploration assets in Western
Australia.
Sunrise Resources (LON:SRES) continues to advance its
pozzolan-perlite project in Nevada, USA towards mine permitting,
while Alba (LON:ALBA) is developing its Welsh gold deposits and its
spin-out company GreenRoc, in which it holds a 45% stake, advances
its Greenland graphite and ilmenite projects.
Despite the prolonged increases in global interest rates to stem
inflationary pressures, we continue to believe that the effects of
expansionary monetary policies, continued fiscal stimulus and
geopolitical tensions favour a positive outlook for gold and
precious metals in the longer term.
Callum N Baxter
Chairman
6 June 2023
Statement of Comprehensive Income
6 months 6 months Year ended
to 31 March to 31 March 30 September
2023 2022 2022
Unaudited Unaudited Audited
GBP GBP GBP
Administrative expenses (154,040) (155,472) (305,944)
(Loss)/gain on disposal of financial
assets - (29,383) (53,398)
Movement in fair value of financial
assets through profit and loss 308,500 (2,195,966) (7,234,928)
Investment income - 29,628 53,428
-------------- --------------- ----------------
Operating profit/(loss) 154,460 (2,351,193) (7,540,842)
Profit/(loss) on ordinary activities
before tax 154,460 (2,351,193) (7,540,842)
Tax on (loss) on ordinary activities - 587,798 1,671,086
-------------- --------------- ----------------
Profit/(loss) attributable
to equity holders of the parent 154,460 (1,763,395) (5,869,756)
============== =============== ================
Earnings per share - see note
3
Basic 0.26 pence (3.04 pence) (10.09 pence)
Diluted 0.26 pence (3.04 pence) (10.09 pence)
Statement of Financial Position
6 months 6 months Year ended
ended 31 ended 31 30 September
March 2023 March 2022 2022
Unaudited Unaudited Audited
GBP GBP GBP
Non-current assets
Financial assets at fair
value through profit or
loss 6,464,672 11,625,035 6,156,173
------------- ------------ --------------
Total non-current assets 6,464,672 11,625,035 6,156,173
------------- ------------ --------------
Current assets
Trade and other receivables 36,768 53,615 77,424
Cash and cash equivalents 284,016 157,715 406,106
------------- ------------ --------------
Total current assets 320,784 211,330 483,530
------------- ------------ --------------
Current liabilities
Trade and other payables (33,069) (70,636) (41,776)
------------- ------------ --------------
Total current liabilities (33,069) (70,636) (41,776)
------------- ------------ --------------
Non-current liabilities
Provision for deferred tax - (1,083,288) -
------------- ------------ --------------
Total non-current liabilities - (1,083,288) -
------------- ------------ --------------
Net assets 6,752,387 10,682,441 6,597,297
============= ============ ==============
Capital and reserves
Called up share capital 582,824 581,144 582,824
Share premium account 1,888,863 1,868,696 1,888,863
Retained earnings 4,280,700 8,232,601 4,126,240
------------- ------------ --------------
Total equity shareholders'
funds 6,752,387 10,682,441 6,597,927
============= ============ ==============
Statement of Cash Flows
6 months 6 months Year ended
ended 31 ended 31 30 September
March 2023 March 2022 2022
Unaudited Unaudited Audited
GBP GBP GBP
Cash flows from operating activities
Operating profit/(loss) 154,460 (2,351,192) (7,540,842)
Shares issued in settlement
of salaries and fees - 21,847 43,694
Movement in fair value of investments (308,499) 2,195,966 7,234,928
(Loss)/profit on sale of current
asset investments - 29,383 53,398
Decrease/(increase) in debtors 40,656 9,923 (13,885)
Decrease in creditors (8,707) (14,991) (43,851)
------------ ------------ --------------
Net cash used in operating
activities (122,090) (109,064) (266,558)
------------ ------------ --------------
Cash flows from investing activities
Sale of current asset investments - 188,503 594,388
Net cash generated from investing
activities - 188,503 594,388
------------ ------------ --------------
Net (decrease)/increase in
cash and cash equivalents (122,090) 79,439 327,830
Cash and cash equivalents at
beginning of period 406,106 78,276 78,276
------------ ------------ --------------
Cash and cash equivalents at
end of period 284,016 157,716 406,106
============ ============ ==============
Statement of Changes in Equity
Total Equity
Retained attributable
Share capital Share premium earnings to shareholders
GBP GBP GBP GBP
At 30 September 2021 579,820 1,848,173 9,995,996 12,423,989
============= ============= =========== ================
Loss for the period - - (1,763,395) (1,763,395)
Total recognised income
and expenses for the
period - - (1,763,395) (1,763,395)
Shares issued 1,324 20,523 - 21,847
Total contribution
by and distributions
to owners 1,324 20,523 - 21,847
At 31 March 2022 581,144 1,868,696 8,232,601 10,682,441
============= ============= =========== ================
Loss for the period - - (4,106,361) (4,106,361)
------------- ------------- ----------- ----------------
Total recognised income
and expenses for the
period - - (4,106,361) (4,106,361)
Shares issued 1,680 20,167 - 72,839
Total contribution
by and distributions
to owners 1,680 20,167 - 72,839
At 30 September 2022 582,824 1,888,863 4,126,240 6,597,927
============= ============= =========== ================
Profit for the period - - 154,460 154,460
Total recognised income
and expenses for the
period - - 154,460 154,460
Shares issued - - - -
Total contributions - - - -
by and distributions
to owners
At 31 March 2023 582,824 1,888,863 4,280,700 6,752,387
============= ============= =========== ================
Interim report notes
1. Interim report
The information relating to the six-month periods to 31 March
2023 and 31 March 2022 is unaudited.
The information relating to the year ended 30 September 2022 is
extracted from the audited accounts of the Company which have been
filed at Companies House and on which the auditors issued an
unqualified audit report.
2. Basis of preparation
This report has been prepared in accordance with applicable
United Kingdom accounting standards, including Financial Reporting
Standard 102 - 'The Financial Reporting Standard applicable in the
United Kingdom and Republic of Ireland' ('FRS102'), and with the
Companies Act 2006. Although the information included herein does
not constitute statutory accounts within the meaning of section 435
of the Companies Act 2006, the accounting policies that have been
applied are consistent with those adopted for the statutory
accounts for the year ended 30 September 2022.
The Company will report again for the full year to 30 September
2023.
The Company's investments at 31 March 2023 are stated at the
current market value based on market quoted prices at the close of
business on 31 March 2023. The Chairman's statement includes a
valuation based on market quoted prices at the close of business on
31 March 2023.
3. Earnings per share
6 months 6 months Year ended
ended 31 ended 31 30 September
March 2023 March 2022 2022
Unaudited Unaudited Audited
GBP GBP GBP
Profit/(loss) for the period/
year: 154,460 (1,763,395) (5,869,756)
------------- --------------- ----------------
Weighted average number of
Ordinary shares of GBP0.01
in issue 58,282,493 58,080,245 58,181,646
------------- --------------- ----------------
Earnings per share - basic 0.27 pence (3.04 pence) (10.09 pence)
and diluted
============= =============== ================
Investment portfolio
Starvest now holds trade investments in the companies listed
below; of these the following companies comprise 99% of the
portfolio value as at 31 March 2023:
Exploration for gold in Wales,
* Alba Mineral Resources plc oil in England, lead-zinc in Ireland,
and investment in GreenRoc graphite
in Greenland
www.albamineralresources.com
Gold-silver production and exploration
* Ariana Resources plc in Turkey, and precious metal exploration
in Eastern Europe
www.arianaresources.com
Gold exploration in West Africa
* Cora Gold Limited www.coragold.com
Gold exploration and development
* Greatland Gold plc in Australia
www.greatlandgold.com
Gold and copper exploration and
* Kefi Minerals plc development in Ethiopia and Saudi
Arabia
www.kefi-minerals.com
Coal and green hydrogen development
* Oracle Power plc in Pakistan and gold exploration
in Australia
www.oraclepower.co.uk
Other direct and indirect mineral exploration companies:
Oil and gas exploration in Bulgaria
* Block Energy plc (formerly Goldcrest Resources plc) www.blockenergy.co.uk
Exploration for industrial minerals
* Sunrise Resources plc in United States, Finland, Australia
and Ireland
www.sunriseresourcesplc.com
Other investee companies are listed in the Company's 2022 annual
report available on request or from the Company web site -
www.starvest.co.uk
Copies of this interim report are available free of charge by
application in writing to the Company Secretary at the Company's
registered office, Salisbury House, London Wall, London EC2M 5PS,
by email to info@starvest.co.uk or from the Company's website -
www.starvest.co.uk
Enquiries to:
Starvest PLC
Mark Badros or Gemma Cryan 02077 696 876 or
info@starvest.co.uk
Grant Thornton UK LLP (Nomad)
Colin Aaronson, Harrison Clarke or Ciara Donnelly 02073 835
100
SI Capital Ltd (Broker)
Nick Emerson or Sam Lomanto 01483 413 500
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