Interim Results

INTERIM REPORT FOR SIX MONTHS ENDED 30 SEPTEMBER 2015

 

Chairman’s Statement

Attached is the financial information of the Company and Group for the 6 months ended 30th September 2015. During this period we incurred a loss of £281,000 on pursuing our exploration projects in South-East Asia and covering the costs associated with operating as a listed company. During this period, our cash balances declined by £81,000 from £745,000 to £664,000. The difference between this decline and the loss figure was mainly due to the cash injection of £208,000 in respect of the sale of new shares in July.

New venture – Moroccan Minerals

As stated in our announcement on 1 December 2015, Aurasian Minerals plc has signed a heads of terms agreement with Moroccan Minerals Ltd (“MML”) to acquire all the outstanding shares of MML. MML has signed an earn in agreement with a local partner to earn up to an 80% interest in a polymetallic project (“Chadine”) in Serbia.

South-East Asia

Following a detailed review of the company’s exploratory work, both in Myanmar and PDR Laos, we have now concluded that: (i) there are currently obstacles to acquiring the projects we had targeted in these countries; and (ii) the Company needs to focus its limited resources on advancing the Chadine project in the forthcoming period.

We have therefore put our plans in South East Asia on hold for now.

Remaining portfolio in Papua New Guinea

Wamum: The process of obtaining the required government approvals and receiving payment for the sale of our stake in the Wamum project has continued to be slow. We hope and expect to be paid by some time in the first half of 2016.

Morobe: AuM continues to hold a royalty interest in the licence EL 1365 in the Morobe area which is being explored by Niuminco Group Ltd.

Conclusion

AuM has, over the last 6 months, concentrated on locating a significant project with known mineralisation and considerable exploration upside in a country with a favourable fiscal regime. We located a few high quality exploration projects in Laos but they had difficult challenges, including a royalty rate which would have made the project commercially unattractive and impossible to finance. Due to this AuM decided to look elsewhere in the world and several potential projects were identified. On close examination these either lacked sufficient exploration potential or were located in a country with difficult fiscal rules or with an uncertain political and regulatory environment.

MML recently acquired the Chadine project in Serbia which has both a known resource with good upside and a large exploration district in an under-explored area. Serbia has a competitive fiscal regime with a 15% corporation tax rate and a 5% royalty and the regulatory environment in Serbia appears to be quite stable and supportive. MML welcomed Aurasian’s ability to contribute cash and management resources to pursue the project. Chadine is polymetallic and would therefore give Aurasian exposure to copper and zinc as well as to precious metals.

We hope that we can pursue Chadine successfully into 2016 and look forward to keeping our shareholders updated on our progress once we have completed the acquisition of MML in early 2016.

Christopher Goss

Chairman

 

For further information, please contact:

Aurasian Minerals Plc                                                                       christopher.goss@aurasianminerals.com

Christopher Goss

finnCap Limited                                                                                   +44 (0) 20 7220 0500

Christopher Raggett/Scott Mathieson

 

Copies of this report are available to view on the Company’s website at: www.aurasianminerals.com


AURASIAN MINERAS PLC

INTERIM REPORT FOR SIX MONTHS ENDED 30 SEPTEMBER 2015

Six months ended

Year ended

30th September

31st March

2015

2014

2015

£’000

£’000

£’000

(Unaudited)

(Unaudited)

(Audited)

Cost of sales

(263)

(226)

(442)

(2)

(4)

Operating loss

(263)

(228)

(446)

0

20

5

(18)

24

(18)

20

29

(281)

(208)

(417)

Income tax expense

Loss for the period from continuing operations

(281)

(208)

(417)

Loss for the period attributable to equity holders of the parent

(281)

(208)

(417)

(0.08)p

(0.06)p

(0.11)p

Six months ended

Year ended

30th September

31st March

2015

2014

2015

£’000

£’000

£’000

(Unaudited)

(Unaudited)

(Audited)

(281)

(208)

(417)

55

Total comprehensive income for the period attributable to equity holders of the parent

(281)

(208)

(362)



AURASIAN MINERALS PLC

INTERIM REPORT FOR SIX MONTHS ENDED 30 SEPTEMBER 2015

30th September

31st March

2015

2014

2015

£’000

£’000

£’000

(Unaudited)

(Unaudited)

(Audited)

Exploration and evaluation assets held for sale

495

462

505

Trade and other receivables

8

22

8

664

908

745

Total current assets

1,167

1,392

1,258

Total assets

1,167

1,392

1,258

Equity attributable to owners of the parent

3,735

3,687

3,687

25,431

25,271

25,271

707

705

707

748

693

748

(50)

(65)

(50)

(29,431)

(28,926)

(29,150)

Total equity

1,140

1,365

1,213

Liabilities

Trade and other payables

27

27

45

Total liabilities

27

27

45

Total equity and liabilities

1,167

1,392

1,258

 

 

AURASIAN MINERALS PLC

INTERIM REPORT FOR SIX MONTHS ENDED 30 SEPTEMBER 2015

Consolidated statements of cash flows

Six months ended

Year ended

30th September

31st March

2014

2014

2015

£’000

£’000

£’000

(Unaudited)

(Unaudited)

(Audited)

Cash flows from operating activities

Loss before and after tax

(281)

(208)

(417)

Share-based payments

2

4

Interest received

(3)

(5)

Operating loss

(281)

(209)

(418)

Decrease in trade and other receivables

10

83

108

(Decrease) / Increase in trade and other payables

(18)

(10)

9

Net cash outflow from operating activities

(289)

(136)

(301)

Cash flows from investing activities

Interest received

3

5

Net cash inflow from investing activities

3

5

 

Financing activities

Proceeds from issue of equity shares

208

Net cash inflow from financing activities

208

 

Net decrease in cash and cash equivalents

 

(81)

 

(133)

 

(296)

Cash and cash equivalents at beginning of period

745

1,041

1,041

Exchange differences

Cash and cash equivalents at end of period

664

908

745

 


AURASIAN MINERALS PLC 

INTERIM REPORT FOR SIX MONTHS ENDED 30 SEPTEMBER 2015

Consolidated statements of changes in equity

Share capital

Share premium

Share based payment reserve

Own shares held reserve

Currency translation reserve

Retained losses

Total equity

£’000

£’000

£’000

£’000

£’000

£’000

£’000

At 31 March 2014 (Audited)

3,687

25,271

703

(65)

693

(28,718)

1,571

Loss for the period

(208)

(208)

Total comprehensive income for the period attributable to equity holders of the parent

Share-based payments

2

2

At 30 September 2014 (Unaudited)

3,687

25,271

705

(65)

     693

(28,926)

1,365

Loss for the period

(209)

(209)

Exchange difference on translating foreign operations

55

55

Total comprehensive income for the period attributable to equity holders of the parent

55

(209)

(154)

Shares held by EBT

15

(15)

Share-based payments

2

2

At 31 March 2015 (Audited)

3,687

25,271

707

(50)

748

(29,150)

1,213

Loss for the period

(281)

(281)

Total comprehensive income for the period attributable to equity holders of the parent

(281)

(281)

Shares issued

48

160

208

At 30 September 2015 (Unaudited)

3,735

25,431

707

(50)

748

(29,431)

1,140

                                                 

AURASIAN MINERALS PLC 

INTERIM REPORT FOR SIX MONTHS ENDED 30 SEPTEMBER 2015

Notes to the interim financial information

 

1.             No dividend is proposed in respect of the period.

2.             The results for the period ended 30th September 2015 are derived from continuing activities.

3.             Basis of preparation

This interim financial information has been prepared in accordance with International Financial Reporting Standards (“IFRS”) as adopted by the European Union with the exception of IAS 34 Interim Financial Reporting, and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS. The accounting policies, methods of computation and presentation used in the preparation of the interim financial information are the same as those used in the Group’s audited financial statements for the year ended 31st March 2015.

The financial information in this statement does not constitute full statutory accounts within the meaning of Section 434 of the Companies Act 2006. The financial information for the six months ended 30th September 2015 and 30th September 2014 is unaudited. The comparative information for the year ended 31st March 2015 was derived from the Group’s audited financial statements as filed with the Registrar of Companies. It does not constitute the financial statements for that year. The auditors reported on those financial statements; their report was unqualified, did not contain a statement under section 498(2) or 498 (3) of the Companies Act 2006, and did not include reference to any matters to which the auditor drew attention by way of emphasis.

4.             Loss per share

The calculation of loss per share is based on a loss of £281,000 for the period ended 30th September 2015 (30thSeptember 2014: loss of £208,000; 31st March 2015: loss of £417,000) and the weighted average number of 387,544,231 shares in issue (31st March 2015: 368,716,729; 30th September 2015: 416,308,470). There is no difference between the diluted loss per share and the loss per share presented.

Share options and warrants that could have a potentially dilutive effect on earnings per share in the future as at 30thSeptember 2015 were:

·      18,400,000 share options in issue at prices between 1.0 and 1.1 pence per share

·      5,443,780 warrants in issue at prices between 1.2 and 2.5 pence per share