Wolf Minerals Limited Interim Financial Report (0590G)

TIDMWLFE

RNS Number : 0590G

Wolf Minerals Limited

27 February 2015

27 February 2015

Wolf Minerals Limited

Interim Financial Report

For the half year ended 31 December 2014

Specialty metals development company, Wolf Minerals Limited (ASX: WLF, AIM: WLFE) ("Wolf" or "the Company") is pleased to release its interim financial report for the half year ended 31 December 2014.

Highlights for the half year include:

   --    On track to deliver the first new metal mine in Great Britain for over 45 years. 

-- The progress of the Hemerdon Project (the "Project") as at the half year was 67% complete and also on schedule and within budget. The EPC contractor expects to commence dry commissioning of the plant in March 2015.

o The EPC Contractor hand over to Wolf Minerals is scheduled for Q3 2015.

o At the half year all structural concrete pours were complete with structural steel erection being 44% complete. As the date of this release the structural steel erection is now 80% complete.

   --    The Mine Waste Facility is on track to be finished by the scheduled plant commissioning. 

o During construction of the Mine Waste Facility 100,000 tonnes of ore has been extracted and stockpiled, forming the basis of the initial feed to the processing plant.

-- A geotechnical diamond drilling programme to assess the feasibility of extending the mine life through steepening the mine walls and thereby enabling a deeper pit has concluded. With the potential to increase ore reserves by between 15% to 23% this possible extension would occur within the existing planning permission boundary.

-- Commencement of the draw down of GBP75m million in senior debt facilities following Wolf Minerals satisfying all necessary conditions. As at the date of this release 50% of the debt facilities have been drawn.

-- The Assay Laboratory contract for the Project was finalised and awarded to SGS. The Power Supply contract for the Project to DONG Energy was awarded in early January 2015.

   --    Recruitment of key personnel is on track. 

Commenting on the interim results, Wolf Managing Director, Russell Clark said:

"I am delighted to be able to report on the significant progress we made in the first half of the current financial year and which has continued into the second half. The Hemerdon Project is progressing well and is on schedule for dry commissioning in March 2015 with 100% of the equipment having been delivered and 80% of the structural steel erection complete since the period end. Additionally, we have completed the drilling programme undertaken to assess the opportunity, within the existing planning permission boundary, to steepen the mine walls and thereby increase the reserves and extend the mine life. The Company will report on the results of the drilling programme in due course. Based on the progress we have made so far the Board remains confident of delivering a tungsten producing mine on schedule and on budget."

ENDS

The Company's web site has time lapse photography showing both the processing plant site and mine site which can be seen at:

http://www.wolfminerals.com.au/hemerdon-tungsten-and-tin-project/live-stream

 
   Wolf Minerals Limited 
    Russell Clark                                 [phone] 
   Numis Securities 
    John Prior/James Black/Paul Gillam            [phone] 
   Newgate 
    Tim Thompson / Adam Lloyd / Ed Treadwell 
    / Helena Bogle                                [phone] 
 

WOLF MINERALS LIMITED

A.B.N. 11 121 831 472

AND CONTROLLED ENTITIES

INTERIM FINANCIAL REPORT

31 DECEMBER 2014

31 DECEMBER 2014

CONTENTS

   CORPORATE DIRECTORY      1 
   DIRECTORS' REPORT      2 
   AUDITORS INDEPENDENCE DECLARATION           6 
   CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME          7 
   CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION        8 
   CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY        9 
   CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS       10 
   NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS   11 
   DIRECTORS' DECLARATION               24 
   INDEPENDENT AUDITORS' REVIEW REPORT        25 

This interim financial report does not include all the notes of the type normally included in an annual financial report. Accordingly, this report is to be read in conjunction with the annual report for the year ended 30 June 2014 and any public announcements made by Wolf Minerals Limited during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001.

CORPORATE DIRECTORY

NON-EXECUTIVE CHAIRMAN

John Hopkins OAM

EXECUTIVE MANAGING DIRECTOR

Russell Clark

NON-EXECUTIVE DIRECTORS

Ronnie Beevor

Nick Clarke

Chris Corbett

Don Newport

Michael Wolley

ALTERNATE DIRECTOR

William Goodwin

CHIEF FINANCIAL OFFICER

Richard Lucas

JOINT COMPANY SECRETARIES

Richard Lucas

Pauline Carr

PRINCIPAL & REGISTERED OFFICE

Level 3, 22 Railway Road

SUBIACO WA 6008

AUDITORS

PKF Mack

Level 4, 35 Havelock Street

WEST PERTH WA 6005

LAWYERS

Steinepreis Paganin

Level 4, 16 Milligan Street

PERTH WA 6000

SHARE REGISTER

Security Transfer Registrars Pty Ltd

770 Canning Hwy

APPLECROSS WA 6153

UK DEPOSITORY

Computershare Investor Services PLC

The Pavilions, Bridgwater Road

Bristol BS99 6ZZ

SECURITIES EXCHANGE LISTINGS

Australian Securities Exchange

(Home Exchange: Perth, Western Australia)

Code: WLF

Alternative Investment Market

London Stock Exchange

Code: WLFE

BANKERS

National Australia Bank

50 St Georges Terrace

PERTH WA 6000

WEBSITE

www.wolfminerals.com

DIRECTORS' REPORT

Your Directors submit the financial report of the Consolidated Entity for the half year ended

31 December 2014.

DIRECTORS

The names of Directors who held office during or since the end of the half year:

 
   John Hopkins OAM     Non-Executive Chairman 
   Russell Clark        Executive Managing 
                         Director 
   Ronnie Beevor        Non-Executive Director 
   Nick Clarke          Non-Executive Director 
   Chris Corbett        Non-Executive Director 
   Don Newport          Non-Executive Director 
   Michael Wolley       Non-Executive Director 
   William Goodwin      Alternate Director 
 

PRINCIPAL ACTIVITIES

During the half year the principal activities of the Consolidated Entity consisted of mineral development, conducted through Wolf Minerals (UK) Limited.

REVIEW OF RESULTS

The Directors of Wolf Minerals Limited ("Wolf" or "the Company") announce for the half year to 31 December 2014 a net consolidated loss after tax of $3,719,177 (2013: $1,322,933).

REVIEW OF OPERATIONS

Summary

Wolf has continued to focus on its development of the Hemerdon tungsten and tin project ("Hemerdon" or "the Project") located in Devon, England. During the half year ended 31 December 2014 the key activities include:

   --     Continued progress on the development of the Project. 
   --     Commenced draw down of GBP75 million in senior debt facilities. 
   --     Geotechnical diamond drilling program completed. 
   --     Laboratory Services contract awarded for the Project. 
   --     Appointment of new officers of the Company. 

Continued progress on the development of the Project

The construction of the Project commenced in February 2014.

As at 31 December 2014 construction was 67% complete and remains on schedule. GR Engineering Services Limited, the Project's Engineering-Procurement-Construction ("EPC") contractor, expects to commence dry commissioning of the plant in March 2015, with the hand over to Wolf scheduled for the third quarter of 2015.

By the end of the December 2014, significant progress had been made at the site including:

DIRECTORS' REPORT (CONTINUED)

-- Continued progress on the Mine Waste Facility. This facility accommodates the waste from both the mine and the processing plant and is one of the key components of the Project. As expected, construction of the facility has slowed during the winter months and is still on track to be available for the scheduled plant commissioning.

   --     All structural concrete pours are now complete. 
   --     Structural steel erection was 44% complete. 

-- All plant equipment has been delivered to site or is in transit to site, allowing for immediate installation as the foundations or supporting steelwork becomes available.

-- Administration, laboratory and amenities buildings have been completed and will be commissioned in early 2015.

-- Development of the open pit continued with the excavation waste used in the construction of the Mine Waste Facility. There is no overburden removal required to access the orebody, as it is exposed at surface from previous operations.

-- Over 100,000 tonnes of ore have been stockpiled at the mine. This ore was extracted during the mining of waste used for the construction of the Mine Waste Facility and will form the basis of the initial feed to the processing plant.

-- Recruitment of key professional staff continued with Wolf having 37 employees working directly for Wolf Minerals (UK) Limited at 31 December 2014 with a number of new recruits to start in January 2015.

   --     At the end of December there were over 350 people working at the Project site. 

-- Tree planting and stone wall reconstruction activities had commenced, with 40,000 trees to be planted by June 2015.

Commenced draw down of GBP75 million in senior debt facilities

During the period Wolf reported that it had satisfied all necessary conditions required to draw down the Project's GBP75 million senior debt finance facilities (refer to Announcement dated 16 September 2014). This represented another significant milestone for the Project and the Company.

The first draw down and utilisation of the funds took place on 19 September 2014.