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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Bezant Resources Plc | AQSE:BZT.GB | Aquis Stock Exchange | Ordinary Share | GB00B1CKQD97 |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| -0.002 | -10.00% | 0.018 | 0.015 | 0.021 | 0.02 | 0.018 | 0.02 | 0.00 | 14:54:53 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
From May 2019 to May 2024
TIDMBZT
RNS Number : 2680P
Bezant Resources PLC
16 November 2016
16 November 2016
Bezant Resources Plc
("Bezant" or the "Company")
Final Results for the Year Ended 30 June 2016
Bezant (AIM: BZT), the AIM quoted mineral exploration and development company, announces its audited final results for the year ended 30 June 2016.
Highlights:
Corporate:
-- GBP9.1m loss after tax (30 June 2015: GBP0.7m)
-- Impairment charge of GBP8.3m relating to the Company's Mankayan Copper-Gold Project, Philippines
-- Approximately GBP0.3m cash at bank at the period end (30 June 2015: GBP1.7m)
Platinum and Gold Mining Project, Choco District, Colombia:
-- Option exercised to acquire 100% of Leeward Islands Exploration LLC which holds certain options over alluvial platinum and gold mining and exploration licences located in and around the Choco District, Colombia
Mankayan Copper-Gold Project, Philippines (the "Mankayan Project" or "Mankayan"):
-- Mankayan Project fully impaired due to the significant lingering uncertainty with respect to achieving any potential sale or joint venture ("JV") for the project in light of the current political and tax environment in the Philippines
Post Period End:
-- Exploration agreement entered into with Exumax S.A.S ("Exumax") to secure its management services and expertise in respect of a planned 24-month exploration and development programme for the Company's near surface Colombian platinum and gold assets
-- Successfully raised, in aggregate, GBP1,189,000 before expenses, through a placement, via Beaufort Securities Limited, of 38,400,000 new ordinary shares of 0.2 pence each in the capital of the Company and a subscription for a further 21,050,000 new ordinary shares by certain new and existing investors, both at a price of 2.0 pence per new ordinary share
-- Acquisition of 100 per cent. of Colombian Mining Data S.A. ("CMD") completed for consideration comprising the issue of 7,201,745 new ordinary shares. CMD holds, inter alia, certain proprietary geological information and other data and intellectual property rights to be utilised by Exumax in performing its services under the Exploration Agreement
-- Work commenced at our Colombia gold-platinum licences in October 2016, OBJECTIVE:
o Rapidly establish production economics of the FKJ-083 licence area, correlating historic mining data from previous operations with current exploration and processing results
o Establish first producing alluvial plant for platinum and gold
o Begin pipeline of further exploration and evaluation to establish prospective production zones
For further information, please contact:
Hot Features
Premium
Bezant Resources plc
Bernard Olivier Tel: +61 40 894
Chief Executive Officer 8182
Laurence Read
Executive Director / Communications Tel: +44 (0)20
Officer 3289 9923
Strand Hanson Limited (Nomad)
James Harris / Matthew Chandler Tel: +44 (0)20
/ James Dance 7409 3494
Beaufort Securities Limited (Broker)
Elliot Hance
Tel: +44 (0)20
or visit http://www.bezantresources.com 7382 8300
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 ("MAR").
Chairman's Statement
I am pleased to present the Group's final results for the financial year ended 30 June 2016 and to report on the Company's on-going activities to the date of this statement.
For the financial year ended 30 June 2016, the Group reported a loss, before and after tax, of GBP9.1m, in comparison to a loss of GBP0.7m in the previous year. The increased annual loss is primarily due to the full impairment of the carrying value for the Mankayan Project of GBP8.3m. The Board has decided to fully impair the Mankayan Project due to the significant lingering uncertainty with respect to achieving any potential sale or joint venture ("JV") for the project in light of the current political and tax environment in the Philippines. Despite this prudent full impairment of the Mankayan Project in the Company's accounts, we will actively continue to seek partners, particularly Philippine based entities, with a view to a potential future sale or JV for the project. I would like to remind shareholders that the Company has previously returned more capital to shareholders (8p per share in May 2013) than has been spent on the acquisition, exploration and development of the project to date.
This reporting period has seen Bezant achieve some real milestones in changing the Company's direction to better match the current challenging global economic and political conditions. Historically, as noted above, we have used Mankayan to achieve value enhancement and capital returns. Mankayan was proved-up in a very cost effective manner at a time when mining companies were seeking to acquire such flagship assets and the option payments received from Gold Fields Netherlands Services BV ("Goldfields") in 2011/2012 are testament to the validity of Bezant's approach. Market conditions have now completely altered and the Board therefore decided to formulate a new strategy to seek to achieve and return shareholder value. To this end, the Board continues to operate the Company from as a low a cost base as reasonably practicable, with salaries reduced across the organisation. The Board has identified and reviewed a series of projects, with particular emphasis on low cost platinum group metals recovery.
Having founded Aquarius Platinum Limited ("Aquarius Platinum"), and co-founded Sylvania Platinum Limited ("Sylvania Platinum"), our management team has had a long history with platinum and developing innovative new ways to recover platinum. At Aquarius Platinum, we pioneered a new way to mine the famous UG2 Reef in Bushveld in South Africa and introduced outsourcing to the management of mining companies. At Sylvania Platinum, we introduced novel and highly successful techniques for the recovery of platinum from Chrome Tailings Dumps. Both Aquarius Platinum and Sylvania Platinum held their respective assets in the famous Bushveld Complex in South Africa. The Bushveld Complex is the world's most significant platinum producer, but it now faces major political and mining challenges that are creating very high costs for the platinum mining industry in South Africa. This has led us to consider platinum projects outside of South Africa. In Colombia we identified that there are promising near surface alluvial platinum projects in the famous Choco district, a region that had previously been the world's major source of platinum prior to the discovery of the Bushveld Complex in South Africa. The Colombian project we have acquired has the benefit of near surface alluvial gravels that contain both platinum and gold deposits, and both metals are recoverable in their native state. The mining conditions in Colombia are very simple compared to the Bushveld Complex. The Bushveld Complex essentially involves deep, hard rock mining operations with considerable metallurgical complexity involved in liberating the economic metals. In the past, Colombia has been considered to be a high risk country, however, modern day Colombia has experienced nearly half a decade of new investment, much improved stability and despite the recent referendum vote rejecting the FARC Peace Agreement, the government and FARC are continuing to negotiate a peace settlement and the consensus is that all parties are working towards achieving a peaceful solution.
Following extensive assessment, the Board announced on 16 November 2015 that the Company had entered into an option agreement to potentially acquire a company holding interests in various platinum and gold licences in the Choco District located in NW Colombia. The option agreement afforded the Company the right to acquire 100 per cent. of Leeward Islands Exploration LLC ("Leeward") which holds options over more than 2,600ha of highly prospective platinum and gold tenements including in historical mining areas.
Subsequently, the Board concluded a small equity subscription to raise approximately GBP0.4 million (before expenses) on 1 December 2015 to enable the Company to progress the potential exercise of the option and associated due diligence. The Board exercised the Company's option to acquire Leeward for consideration comprising US$1 million and the issue of 37,306,137 new ordinary shares on 26 January 2016. We then embarked on a work programme to further assess the potential of the licences held under option by Leeward, and initiated the requisite local community consultation processes in order to obtain the relevant environmental and related permits and approvals prior to the commencement of exploration activities.
Post the reporting period end, the Board was delighted to announce that its preferred project development partner had been secured, namely Exumax S.A.S. ("Exumax"), a Colombian based alluvial mining company with an international management team with over 6 years' experience operating alluvial mining projects in Colombia. Exumax has built a bespoke alluvial business in Colombia having imported specialist alluvial mining equipment from New Zealand, the world leaders in stream bed mining technology.
With our exploration agreement in place with Exumax and all required permits and approvals having been secured to enable exploration work to commence on the FKJ-083 licence area, a further equity fundraising of approximately GBP1.19m was successfully concluded in September 2016. As a further indication of their support and belief in the potential of the Company and its asset portfolio, the Board also converted certain unpaid fees and salaries in September 2016, subsequent to the equity fund raising at a circa 20 per cent. premium to the placing price. Alluvial processing test plant was then mobilised to site by Exumax and commissioned. All required machinery, earth-moving equipment, processing plant and work crews are now on site and work on the first exploration test pits has commenced on the FKJ-083 licence area. I look forward to updating the market in due course as we make further progress.
Mr Edward Nealon
Non-Executive Chairman
15 November 2016
Group Statement of Comprehensive Income
For the year ended 30 June 2016
Notes 2016 2015
GBP'000 GBP'000
Continuing operations
Group revenue - -
Cost of sales - -
--------- --------
Gross profit/(loss) - -
Operating expenses (717) (561)
Group operating loss (717) (561)
Interest receivable 1 2
Impairment 2 (8,278) -
Share of Associates'
loss (136) (124)
--------- --------
Loss before taxation (9,130) (683)
Taxation - -
--------- --------
Loss for the year (9,130) (683)
========= ========
Attributable to:
Owners of the Company (9,114) (683)
Non-controlling interest (16) -
--------- --------
(9,130) (683)
========= ========
Other comprehensive
income:
Foreign currency reserve
movement 499 192
--------- --------
Total comprehensive
loss for the year (8,631) (491)
========= ========
Attributable to:
Owners of the Company (8,609) (491)
Non-controlling interest (22) -
--------- --------
(8,631) (491)
========= ========
Loss per share (pence)
Basic and diluted 3 (8.42) (0.82)
--------- --------
Consolidated Statement of Changes in Equity
For the year ended 30 June 2016
Share Share Other Retained Non-Controlling Total
Capital Premium Reserves Losses interest Equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 1
July 2015 166 31,053 549 (17,470) - 14,298
Current year
loss - - - (9,114) (16) (9,130)
Foreign currency
reserve - - 505 - (6) 499
Total comprehensive
loss for the
year - - 505 (9,114) (22) (8,631)
--------- --------- ---------- --------- ---------------- ---------
Proceeds from
shares issued 33 368 - - - 401
Issue of ordinary
shares related
to business combination 75 627 - - - 702
Subsidiary acquired - - - - (21) (21)
Balance at 30
June 2016 274 32,048 1,054 (26,584) (43) 6,749
========= ========= ========== ========= ================ =========
Balance at 1
July 2014 166 31,053 357 (16,787) - 14,789
Prior year loss - - - (683) - (683)
Foreign currency
reserve - - 192 - - 192
Total comprehensive
loss for the
year - - 192 (683) - (491)
Balance at 30
June 2015 166 31,053 549 (17,470) - 14,298
==== ======= ==== ========= =======
Consolidated Balance Sheet
As at 30 June 2016
Notes 2016 2015
GBP'000 GBP'000
ASSETS
Non-current assets
Plant and equipment 55 61
Investments - 7,753
Intangibles - options to
acquire exploration licence 4 1,620 -
Exploration and evaluation
assets 4,790 4,788
--------- ---------
Total non-current assets 6,465 12,602
--------- ---------
Current assets
Trade and other receivables 115 74
Cash and cash equivalents 261 1,679
--------- ---------
Total current assets 376 1,753
--------- ---------
TOTAL ASSETS 6,841 14,355
LIABILITIES
Current liabilities
Trade and other payables 92 57
--------- ---------
Total current liabilities 92 57
--------- ---------
NET ASSETS 6,749 14,298
========= =========
EQUITY
Share capital 274 166
Share premium 32,048 31,053
Share-based payment reserve 265 265
Foreign exchange reserve 789 284
Retained losses (26,584) (17,470)
--------- ---------
EQUITY ATTRIBUTABLE TO OWNERS
OF THE PARENT 6,792 14,298
NON-CONTROLLING INTEREST (43) -
--------- ---------
TOTAL EQUITY 6,749 14,298
========= =========
Consolidated Statement of Cash Flows
For the year ended 30 June 2016
Notes 2016 2015
GBP'000 GBP'000
Net cash outflow from operating
activities 5 (813) (726)
--------- --------
Cash flows from investing
activities
Interest received 1 2
Other income 22 29
Deferred exploration expenditure (2) -
Acquisition of subsidiary,
net of cash acquired (669) -
Loans to associates and subsidiaries (496) (225)
(1,144) (194)
--------- --------
Cash flows from financing
activities
Proceeds from issuance of
ordinary shares 401 -
401 -
Decrease in cash (1,556) (920)
Cash and cash equivalents
at beginning of year 1,679 2,435
Foreign exchange movement 138 164
--------- --------
Cash and cash equivalents
at end of year 261 1,679
========= ========
Notes to the financial information
For the year ended 30 June 2016
1. Basis of Preparation
The audited financial information set out above,
which incorporates the financial information
of the Company and its subsidiary undertakings
(the "Group"), has been prepared using the historical
cost convention and in accordance with International
Financial Reporting Standards ("IFRS") including
IFRS 6 'Exploration for and Evaluation of Mineral
Resources', as adopted by the European Union
("EU") and with those parts of the Companies
Act 2006 applicable to companies reporting under
IFRS.
The audited financial information contained
in this announcement does not constitute the
Company's full financial statements for the
year ended 30 June 2016 or 2015, but is derived
from those financial statements, approved by
the board of directors. The auditors' report
on the 2016 financial statements was unqualified
and did not contain any statement under section
498(2) or (3) of the Companies Act 2006 but
did contain an 'emphasis of matter' paragraph
relating to going concern. The full audited
financial statements for the year ended 30 June
2016 will be delivered to the Registrar of Companies
and filed at Companies House following the Company's
forthcoming annual general meeting.
Going concern basis of accounting
The Group made a loss from all operations for
the year after tax of GBP9.1 million (2015:
GBP0.7 million) primarily due to the full impairment
of the carrying value of the Mankayan Project
of GBP8.3 million, had negative cash flows from
operations and is currently not generating revenues.
Cash and cash equivalents were GBP261,000 as
at 30 June 2016 and on 19 September 2016 the
Company raised approximately GBP1.19 million
from an equity fundraising. An operating loss
is expected in the 12 months subsequent to the
date of the accounts and as a result the Company
will probably need to raise funding to provide
additional working capital to finance its ongoing
activities especially if it decides to exercise
some or all of its options over the platinum
and gold licences in Colombia. Management has
successfully raised money in the past, but there
is no guarantee that adequate funds will be
available when needed in the future.
There is a material uncertainty related to the
conditions above that may cast significant doubt
on the Group's ability to continue as a going
concern and therefore the Group may be unable
to realise its assets and discharge its liabilities
in the normal course of business.
Based on the Board's assessment that the Company
will be able to raise additional funds, if required,
to meet its working capital and capital expenditure
requirements, the Board have concluded that
they have a reasonable expectation that the
Group can continue in operational existence
for the foreseeable future. For these reasons
the Group continues to adopt the going concern
basis in preparing the annual report and financial
statements.
2. Impairment
2016 2015
GBP'000 GBP'000
Impairment loss on loan to
associate 3,310 -
Impairment loss on investment
in associate 4,968 -
--------- ---------
8,278 -
========= =========
The Mankayan project has been fully impaired
due to the significant lingering uncertainty
concerning any potential sale or JV of the project
given the current political and tax environment
in the Philippines.
3. Loss per share
The basic and diluted loss per share have been
calculated using the loss attributable to equity
holders of the Company for the 12 months ended
30 June 2016 of GBP9,114,000 (2015: GBP683,000).
The basic loss per share was calculated using
a weighted average number of shares in issue
of 108,279,905 (2015: 82,939,525).
The diluted loss per share has been calculated
using a weighted average number of shares in
issue and to be issued of 110,677,705 (2015:
85,337,325).
The diluted loss per share and the basic loss
per share are recorded as the same amount, as
conversion of share options decreases the basic
loss per share, thus being anti-dilutive.
4. Intangibles - options to acquire exploration licence
2016 2015
GBP'000 GBP'000
Opening balance - -
Acquisitions through business
combinations - Colombian projects'
rights over platinum and gold
licence areas 1,620 -
--------- --------
Carried forward
at 30 June 2016 1,620 -
========= ========
The options to acquire exploration licences represent
an attractive opportunity to potentially generate
long-term shareholder value via the creation
of a low cost platinum and gold production operation
outside of South Africa. Whilst platinum group
metals prices are currently depressed, significant
pressure on major platinum sources and depleting
stock-piles should enable Bezant to realise potentially
significant margins from the potential successful
future development of such licence areas. The
Board of Directors of Bezant has significant
past experience of successfully developing world-class
PGM group production sources with the Company's
Non-Executive Chairman, Edward Nealon, having
founded Aquarius Platinum Limited and Sylvania
Resources Limited.
The directors have assessed the value of the
intangible assets, and in their opinion, based
on a review of the options over areas of interest,
expected available funds and the opportunity
to potentially create a low cost platinum and
gold production operation, no impairment is necessary.
5. Reconciliation of operating loss to net cash outflow from
operating activities
2016 2015
GBP'000 GBP'000
Operating loss (717) (561)
Depreciation and amortisation 6 10
VAT refunds received (22) (29)
Foreign exchange gain (146) (164)
Decrease/(increase) in receivables 54 (8)
Increase/(decrease) in payables 12 26
Net cash outflow from operating
activities (813) (726)
========= =========
6. Availability of Annual Report and Financial Statements
Copies of the Company's full Annual Report and
Financial Statements are expected to be posted
today to those shareholders who have elected
to receive hardcopy shareholder communications
from the Company and, once posted, will also
be made available to download from the Company's
website at www.bezantresources.com.
The Annual Report and Financial Statements will
also be made available for inspection at the
Company's registered office during normal business
hours on any weekday. Bezant Resources Plc is
registered in England and Wales with registered
number 02918391. The registered office is at
Level 6, Quadrant House, 4 Thomas More Square,
London E1W 1YW.
7. Annual General Meeting
The Company's next Annual General Meeting ("AGM")
will be held at 10.00 a.m. on Friday, 9 December
2016 and a formal Notice of AGM and proxy form
will also be posted today to those shareholders
who have elected to receive hard copy shareholder
communications from the Company and can also
be downloaded from the Company's website at www.bezantresources.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR FFLFWIFMSEDF
(END) Dow Jones Newswires
November 16, 2016 02:00 ET (07:00 GMT)
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