We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Register for real-time alerts, custom portfolio, and market movers
| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Bushveld Minerals Limited | AQSE:BMN.GB | Aquis Stock Exchange | Ordinary Share | GG00B4TM3943 |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.05 | 6.67% | 0.80 | 0.55 | 1.05 | 0.80 | 0.75 | 0.75 | 0.00 | 10:30:09 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
From Apr 2019 to Apr 2024
TIDMBMN
RNS Number : 3619Q
Bushveld Minerals Limited
29 November 2016
Bushveld Minerals Limited
29 November 2016
29 November 2016
Bushveld Minerals Limited
("Bushveld" or "the Company")
Unaudited interim results performance report for the period ended 31 August 2016
Bushveld Minerals Limited (AIM: BMN), a diversified mineral development company with projects in South Africa and Madagascar, is pleased to report on the operational performance of the Company for the six months ended 31 August 2016. Our portfolio of projects is organised into three platforms, Bushveld Resources Limited (vanadium, titanium and phosphate), Greenhills Resources Limited (tin) and Lemur Resources Limited (coal). These commodity platforms are structured to ensure clarity of focus and purpose to deliver maximum shareholder value.
HIGHLIGHTS:
-- Bushveld is making significant progress to becoming one of the largest, low cost integrated primary vanadium producer in Africa.
Bushveld Resources Limited ("Bushveld Resources")
-- Strategic Minerals Corporation ("SMC") acquisition targeted to transform the Company into a high quality, low cost vanadium producer with a global customer base;
-- Memorandum of understanding ("MoU") signed with prominent USA based vanadium-redox flow batteries ("VRFBs") manufacturer, UniEnergy Technologies ("UET") to partner in identifying and securing energy storage opportunities in Africa;
-- Cooperation Agreement with the Industrial Development Cooperation ("IDC") for the joint development of both the market opportunity for VRFBs in Africa and the potential for creating manufacturing capacity for VRFBs in South Africa;
-- Finalisation of tenders for studies related to VRFB's in partnership with the IDC provides impetus to fully understanding the energy storage market and value chain in South Africa;
-- Integrated environmental authorisation for Mokopane Vanadium project, an important milestone to attaining the mining licence. Development of the project will further enhance synergies identified in the Vametco acquisition and increase the Company's global vanadium supply footprint.
Lemur Resources Limited ("Lemur Resources")
-- Settlement of mining licence 4578 re-affirms Lemur's ownership rights of the Imaloto coal concession in Madagascar.
Greenhills Resources Limited ("Greenhills Resources")
On 22 November 2016 Greenhills Resources announced that it had signed an MoU with VBKom (Proprietary) Limited ("VBKom") for the joint development of the Mokopane Tin Project.
Corporate:
-- Settlement of all outstanding financial obligations arising from the GBP2,600,000 Darwin Strategic facility.
Commenting on the results, CEO Fortune Mojapelo, said,
"I am pleased to report on an interim period that has recorded strong progress towards our goal of being a renowned global integrated vanadium producer. The six months period was defined by the conclusion of fundamental partnership deals in the vanadium production and energy storage sectors.
"A major milestone in the period under review, was the execution of the share purchase agreement with Evraz Group SA for the acquisition of SMC, the holding company for Vametco primary vanadium mine and processing plant. Since then, we have been focused on fulfilling the conditions precedent for the transaction which include securing all requisite regulatory approvals and funding. To date we have made significant progress towards raising capital for the transaction which we anticipate will be structured as a combination of debt and equity with the objective to minimise the dilution impact on our shareholders.
"I am equally pleased with the progress in developing the energy platform, Bushveld Energy. The MoU signed with UET provides us with access to advanced technologies and a deep knowledge base in the manufacture of VFRBs. Furthermore, our finalisation of the tenders for studies into the VFRB market in partnership with the IDC will enable us to effectively enter the market by targeting the most lucrative opportunities.
"The settlement of the dispute over the Imaloto coal concession mining right in the reporting period is greatly welcome and will enable us to pursue the identified power generation opportunities in Madagascar.
"As with all exploration groups at this stage of the resource development cycle, Bushveld's working capital funding is derived principally through equity financing. Therefore I am pleased to confirm that in August and October our shareholders continued to support us through two successful capital raises that grossed GBP1,330,000 in total. I would therefore like to take this opportunity to thank our shareholders for their confidence in the strategy and management's ability to bring the projects to account. The guidance of the Chairman and the board has helped the Bushveld team to successfully pursue the strategic objectives thereby achieving the milestones highlighted in this report. Finally, I would like to thank all the Bushveld employees for their continued commitment to achieve the Company vision."
OPERATIONAL REVIEW
Bushveld Resources
The Company made significant progress during the interim period to develop its vanadium platform into a globally significant low cost integrated vanadium entity and advancing participation in the growing energy storage market through VRFBs. Highlights of our major strides achieved are discussed below.
Bushveld Vametco Limited: Acquisition of Evraz Group S.A's ("Evraz") 78.8% interest in Strategic Minerals Corporation.
In May 2016, BMN's 45% owned subsidiary, Bushveld Vametco Limited ("BVL") announced the signing of a share purchase agreement ("SPA") with Evraz for the conditional purchase of SMC which owns the Vametco vanadium mine and plant in South Africa ("Vametco Alloys"). Vametco Alloys is a high quality, low cost producer with a patented vanadium product and global customer base. The US$16,466,000 acquisition will also provide potential capacity for planned electrolyte manufacturing in South Africa which is the subject of current studies being undertaken by Bushveld Energy Limited ("Bushveld Energy") and the IDC under the pair's Cooperation Agreement signed in June 2016.
The consideration payable is substantially less than the cost of a greenfield mine and plant of the same capacity. This proposed transformational acquisition is a major step towards achieving Bushveld's stated objective to develop a significant, vertically integrated vanadium platform and accelerates the Company's path to production by several years.
The Company has to-date made payments totalling US$1,646,000 (GBP1,244,922) towards the consideration for SMC and is making good progress in securing the financing for the completion of the acquisition. Such financing is envisaged to include a combination of debt and equity with a preference for debt. Furthermore, progress is being made in the fulfilment of conditions precedent to the transaction, including securing regulatory approvals for the transaction.
Bushveld Energy Limited : UniEnergy Technologies MoU
In April 2016, BMN's 84% subsidiary Bushveld Energy signed a MoU with UET, a United States of America based manufacturer of turn-key, large and medium-scale energy storage systems for utility, micro-grid, commercial and industrial applications. The core of the UET system is an advanced VRFB that includes breakthrough electrolyte and optimised power electronics. This MoU provides a framework of cooperation between the two companies in the development of market opportunities for VRFBs and has two broad objectives:
-- To identify and develop immediate business opportunities in Africa for large and medium sized VRFB installations;
-- To create a vanadium value chain in South Africa that includes vanadium electrolyte manufacturing, VRFB manufacturing and local component sourcing.
Bushveld Energy Limited: Cooperation agreement with the Industrial Development Corporation
In June 2016, Bushveld Minerals' subsidiary Bushveld Energy Limited signed a cooperation agreement with the IDC to determine the economic viability of VRFBs for use and manufacture in South Africa. The IDC is South Africa's national development finance institution, wholly-owned by the South African government. It aims to be the primary source of commercially sustainable industrial development and innovation to benefit both South Africa and the rest of Africa by promoting entrepreneurship through the building of competitive industries and enterprises based on sound business principles. In 2015, the IDC approved R 11.5 billion (approximately USD 1 billion) in funding to companies across various sectors.
Further to the UET MoU and IDC cooperation agreement, the Company announced the signing of an addendum to its cooperation agreement with the IDC to involve UET in its steering committee. This is designed to enhance the cooperation between all parties in the common objective of developing the African market and local manufacturing capacity for VRFBs.
Bushveld Energy Limited: Finalisation of tenders for studies related to VRFB's in partnership with the Industrial Development Corporation
In October 2016, progress was achieved in respect of the cooperation agreement with IDC through the finalisation of the tenders for the VRFB market and techno-economic studies. The market study is essential to enhancing the Company's knowledge of attainable market opportunities for VRFB, whilst the techno-economic study will identify the optimal vanadium electrolyte production processes for South African vanadium feedstocks. Bushveld Energy has determined that the opportunities for commercial scale energy storage are numerous globally and the Company is well positioned to deal with the two common hurdles of VRFB adoption of the availability of vanadium supply and vanadium input costs.
Bushveld Resources Limited: Integrated environmental authorisation granted for Mokopane Vanadium project
On 21 September 2016, Bushveld confirmed the granting of an Integrated Environmental Authorisation by the South African Mineral Resources Department in terms of Section 24 L of the National Environmental Management Act (Act 107 of 1998) for the Mokopane Vanadium Project. The Environmental Impact Assessment was compiled as part of the Mining Right Application ("MRA") submitted on 12 March 2015. The next step in the MRA process is the receipt of the approval of the Company's mine works programme and social and labour plan. The Mokopane Vanadium Project remains a key part in the Company's vanadium strategy and offers meaningful synergies with the Vametco Alloys opportunity being pursued.
Greenhills Resources
Greenhills Resources, Bushveld's tin platform, was established to develop a pan-African portfolio of tin assets with a near term production profile. The company continues to advance its stated strategy to build a critical mass of tin resources with a near term production profile and to advance the projects towards production.
On 28 November 2016, the Company announced that it had signed a MoU with VBKom for the joint development of the Mokopane Tin project. Under the terms of the MoU, VBKom commits to conduct due diligence on the Mokopane Tin Project, following which, if a successful outcome, VBKom intends to enter binding agreements to provide capital investment and technical support for the development of the Groenfontein and Zaaiplaats deposits to mine commissioning in return for equity participation in the project, not exceeding 50%. The MoU provides for VBKom to conduct due diligence on the Mokopane Tin Project for a period to 31 January 2017.
The joint development effort is expected to build on the 2014 Mokopane Tin Project Scoping Study (the "Study") based on the two deposits, Groenfontein and Zaaiplaaats. The Study envisaged an initial 691,000 tons per annum Run-of-Mine operation to produce 700 tons per annum of 99.5% Sn purity metal. The positive results of the Study included a pre-tax IRR of 34.6%, all-in cash cost of US$14,276/ton Sn for a US$16 million capex and using a long-term tin price of $22 928/ton.
Lemur Resources
Lemur Resources is the coal and power platform mainly focussed on assets in Madagascar. In the interim period a settlement agreement was reached with Madam Rahajasoamampionona Ramiaramanana in respect of the mining licence 4578 dispute within the Imaloto power project coal concession in Madagascar. This settlement terminates the long running legal case and reaffirms Lemur Resources' ownership rights. The Company continues to be committed to securing the power purchase agreement with the state owned utility entity, Jirama, in order to further the project's economic realisation.
EVENTS AFTER THE REPORTING DATE
The Company released the GBP2,600,000 previously held in escrow to Darwin Strategic in accordance with the agreed terms of the facility and subsequently terminated the arrangement. A total amount of GBP514,800 being the accumulated interest plus penalty for late settlement was paid to Darwin Strategic on 8 November 2016. This serves as the full and final settlement of our obligations under the facility.
The Company successfully raised funding through equity for working capital and to fulfil progress payments on the Vametco transaction:
-- Shares were issued in September following a placing on 1 September 2016 of 38,666,668 new ordinary shares of 1.0 pence each in the Company at a price of 1.5 pence each raising gross proceeds of GBP580,000;
-- Another placing was completed on 27 October 2016 of 53,571,430 new ordinary shares of 1.0 pence each in the Company at a price of 1.4 pence each raising gross proceeds of GBP750,000.
On 22 November 2016 Greenhills Resources signed an MoU with VBKom for the joint development of the Mokopane Tin Project.
OUTLOOK
The Company remains on track to achieving its objectives in respect of all three of its platforms:
-- To complete the SMC acquisition by securing acquisition finance for the transaction -- To secure a mining right for its Mokopane Vanadium project in Mokopane;
-- To complete the studies for VRFBs in Africa, electrolyte manufacturing in South Africa, and to secure a test site for a sizable VRFB installation in the country.
-- To build a critical mass of tin resource inventory and to advance the tin projects towards production;
-- To secure a power purchase agreement for the development of a coal-fired power station using the Imaloto coal resource in Madagasacar.
Enquiries: info@bushveldminerals.com
Bushveld Minerals
Fortune Mojapelo +27 (0) 11 268 6555
Beaufort Securities
Jon Bellis +44 (0) 20 7382 8300
Strand Hanson
Andrew Emmott +44 (0) 20 7409 3494
Blytheweigh
Tim Blythe / Camila Horsfall +44 (0) 20 7138 3204
Gabriella von llle +27 (0) 711 121 907
ABOUT BUSHVELD MINERALS LIMITED
The Company's vision is to become the largest low cost integrated primary vanadium producer through owned low-cost high-grade assets. This incorporates development and promotion of the role of vanadium in the growing global energy storage market through Bushveld Energy, the Company's energy storage solutions provider. Whilst the demand for vanadium remains largely anchored in a slow growing steel industry, Bushveld Minerals believes there is a strong potential for imminent significant global vanadium demand surge from the fast-growing energy storage market, particularly through the use and adoption of Vanadium Redox Flow Batteries.
Bushveld Minerals' approach to project development recognises that whilst attractive project economics are an imperative, they are insufficient to secure capital to bring them to account. A clear path to production with a visible timeframe, low capex requirements and scalability are important factors in retaining an attractive exit option. This philosophy is core to the Company's strategy in developing projects. Detailed information on the Company and progress to date can be accessed on the website: www.bushveldminerals.com
Unaudited Consolidated Income Statement
For the six months ended 31 August 2016
Hot Features
Premium
Six months Six months Year to 29
to to February 2016
31 August 2016 31 August 2015 (audited)
(unaudited) (unaudited) GBP
Note GBP GBP
Continuing operations
Administrative expenses 129,081 (954,555) (1,556,216)
Sundry income 11,890 - 41,152
Finance income 66 90,116 77,992
Finance expense (173,800) - (351,206)
Loss before tax (32,763) (864,439) (1,788,278)
Tax - - -
Total loss for the period (32,763) (864,439) (1,788,278)
=============== =============== ===============================
Attributable to:
Owners of the Company (32,763) (847,095) (1,699,000)
Non-controlling interests - (17,344) (89,278)
(32,763) (864,439) (1,788,278)
=============== =============== ===============================
Loss per ordinary share
attributable
to the owners of the company
Basic and diluted loss
per share (in pence) 4 (0.01) (0.18) (0.39)
=============== =============== ===============================
The notes on pages 14 to 22 form part of these interim financial statements.
Unaudited Consolidated Statement of Comprehensive Income
For the six months ended 31 August 2016
Six months Six months Year to 29
to to February 2016
(audited)
31 August 2016 31 August 2015 GBP
(unaudited) (unaudited)
GBP GBP
Loss for the period (32,763) (847,095) (1,788,278)
Currency translation differences
on translation of foreign
operations 77,539 (779,749) (1,262,002)
Total comprehensive loss
for the period 44,776 (1,626,844) (3,050,280)
==================== =============== ===================
Attributable to:
Owners of the Company 44,776 (1,609,500) (2,961,002)
Non-controlling interests - (17,344) (89,278)
44,776 (1,626,844) (3,050,280)
==================== =============== ===================
unaudited Consolidated Statement of Financial Position
As at 31 August 2016
Six months to Six months to Year to 29 February
31 August 2016 31 August 2015 2016 (audited)
(unaudited) (unaudited) GBP
Note GBP GBP
Assets
Non-current assets
Intangible assets: exploration
activities 5 57,661,954 56,601,236 56,386,494
Property, plant and equipment 6 329,142 60,957 321,206
Total non-current assets 57,991,096 56,662,193 56,707,700
--------------- --------------- -------------------
Current assets
Trade and other receivables 7 1,954,810 535,516 3,066,855
Cash and cash equivalents 117,462 6,144,678 478,619
--------------- --------------- -------------------
Total current assets 2,072,272 6,680,194 3,545,474
Total assets 60,063,368 63,342,387 60,253,174
--------------- --------------- -------------------
Equity and liabilities
Current liabilities
Financial liabilities 8 (1,095,895) (3,697,725) (3,511,631)
Total current liabilities (1,095,895) (3,697,725) (3,511,631)
--------------- --------------- -------------------
Net assets 58,967,473 59,644,662 56,741,543
=============== =============== ===================
Equity
Share capital 9 5,916,706 4,863,373 4,863,373
Share premium 9 60,770,208 59,927,541 59,927,541
Accumulated deficit (7,353,076) (4,969,818) (7,320,313)
Revaluation reserve - (138,628) -
Warrant reserve 422,386 481,653 422,386
Foreign exchange translation
reserve (2,423,418) (2,018,704) (2,500,957)
---------------
Equity attributable to
the owners of the Company 57,332,806 58,145,417 55,392,030
Non-controlling interests 1,634,667 1,499,245 1,349,513
Total equity 58,967,473 59,644,662 56,741,543
=============== =============== ===================
The notes form part of these interim financial statements.
The financial statements were authorised and approved for issue by the Board of Directors and authorised for issue on 28 November 2016.
G N SPROULE
Director
unaudited Consolidated Statement of Changes in Equity
For the six months ended 31 August 2016
Total
attributable
Foreign to owners
Warrant exchange of the Non-
Share Share Accumulated Revaluation reserve translation parent controlling Total
capital premium deficit reserve reserve company interests equity
Total equity
at 29 February
2016 4,863,373 59,927,541 (7,320,313) - 422,386 (2,500,957) 55,392,030 1,349,513 56,741,543
---------------- --------- ---------- ----------- ----------- --------- ----------- ------------ ----------- ----------
Loss for the
period - - (32,763) - - - (32,763) - (32,763)
Other
comprehensive
income:
Currency
translation
differences - - - - - 77,539 77,539 - 77,539
---------------- --------- ---------- ----------- ----------- --------- ----------- ------------ ----------- ----------
Total
comprehensive
income
for the year - - (32,763) - - 77,539 44,776 - 44,776
Transactions
with owners:
Issue of shares 1,053,333 842,667 - - - - 1,896,000 - 1,896,000
Movement in
non-controlling
interest - - - - - - - 285,154 285,154
Total equity at
31 August
2016 5,916,706 60,770,208 (7,353,076) - 422,386 (2,423,418) 57,332,806 1,634,667 58,967,473
---------------- --------- ---------- ----------- ----------- --------- ----------- ------------ ----------- ----------
unaudited Consolidated Statement of Changes in Equity
For the six months ended 31 August 2016
Total
attributable
Foreign to owners
Warrant exchange of the Non-
Share Share Accumulated Revaluation reserve translation parent controlling Total
capital premium deficit reserve reserve company interests equity
Total equity at
31 August
2015 4,863,373 59,927,541 (4,969,818) (138,628) 481,653 (2,018,704) 58,145,417 1,499,245 59,644,662
Loss for the
period - - (2,184,189) - - - (2,184,189) - (2,184,189)
Other
comprehensive
income:
Currency
translation
differences - - - - - (482,253) (482,253) - (482,253)
---------------- --------- ---------- ----------- ----------- -------- ----------- ------------ ----------- -----------
Total
comprehensive
loss
for the year - - (2,184,189) - - (482,253) (2,666,442) (2,666,442)
Transactions
with owners:
Revaluation
reserve
transfer - - (138,628) 138,628 - - - - -
Treasury shares - - (27,678) - - - (27,678) - (27,678)
Issue of - - - -
warrants - - - - -
Warrants
exercised - - - - (59,267) - (59,267) - (59,267)
Movement in
non-controlling
interest - - - - - - - (149,732) (149,732)
---------------- --------- ---------- ----------- ----------- -------- ----------- ------------ ----------- -----------
Total equity at
29 February
2016 4,863,373 59,927,541 (7,320,313) - 422,386 (2,500,957) 55,392,030 1,349,513 56,741,543
---------------- --------- ---------- ----------- ----------- -------- ----------- ------------ ----------- -----------
unaudited Consolidated Statement of Changes in Equity
For the six months ended 31 August 2016
Total
attributable
Foreign to owners
Warrant exchange of the Non-
Share Share Accumulated Revaluation reserve translation parent controlling Total
capital premium deficit reserve reserve company interests equity
Total equity at
28 February
2015 4,863,373 59,927,541 (5,109,965) (138,628) 422,386 (1,238,955) 58,725,752 4,404,516 63,130,268
Loss for the
period - - (847,095) - - - (847,095) (17,344) (864,439)
Other
comprehensive
income:
Currency
translation
differences - - - - - (779,749) (779,749) - (779,749)
---------------- --------- ---------- ----------- ----------- -------- ----------- ------------ ----------- -----------
Total
comprehensive
loss
for the year - - (847,095) - - (779,749) (1,626,844) (17,344) (1,644,188) Transactions with owners: Issue of warrants - - - - 59,267 - 59,267 - 59,267 Movement in non-controlling interest - - 987,242 - - - 987,242 (2,887,927) (1,900,685) ---------------- --------- ---------- ----------- ----------- -------- ----------- ------------ ----------- ----------- Total equity at 31 August 2015 4,863,373 59,927,541 (4,969,818) (138,628) 481,653 (2,018,704) 58,145,417 1,499,245 59,644,662 ---------------- --------- ---------- ----------- ----------- -------- ----------- ------------ ----------- -----------
unaudited Consolidated Statement of Cash Flows
For the six months ended 31 August 2016
Six months Six months Year to 29
to to February
31 August 31 August 2016
2016 2015
GBP GBP GBP
Loss after taxation (32,763) (847,095) (1,788,278)
Adjustments for:
Loss on disposal of tangible
assets - 1,549 -
Finance income (66) (90,116) (77,992)
Finance expenses 173,800 - 351,000
Operating cash flows before
movements in working capital 140,971 (935,662) (1,515,270)
Decrease/(increase) in receivables 2,356,967 (388,805) (320,144)
Increase/(decrease) in financial
liabilities (2,415,736) 3,233,776 63,638
------------ -----------
Net cash used in operating activities (82,202) 1,909,309 (1,771,776)
------------ ----------- -----------
Cash flows from investing activities
Interest received 66 90,116 77,992
Purchase of exploration and
evaluation assets (1,275,460) (1,403,960) (1,498,013)
Purchase of tangible fixed assets - - (275,682)
Acquisition of subsidiary - (1,108,029) -
Deposit paid to Evraz (1,244,922) - -
Cost of acquisition of minority
shares in subsidiary - - (2,991,812)
Net cash used in from investing
activities (2,520,316) (2,421,873) (4,687,515)
------------ ----------- -----------
Cash flows from financing activities
Proceeds from issue of shares
and warrants 1,896,000 - -
Cost of purchase net treasury
shares - - (27,678)
Net cash generated from financing
activities 1,896,000 - (27,678)
------------ ----------- -----------
Net (decrease)/increase in cash
and cash equivalents (706,518) (512,564) (6,486,969)
Cash and cash equivalents at
the beginning of the period 478,619 7,595,777 7,595,777
Effect of foreign exchange rates 345,361 (938,535) (630,189)
Cash and cash equivalents at
end of the period 117,462 6,144,678 478,619
============ =========== ===========
The notes on form part of these financial statements
NOTES TO THE UNAUDITED INTERIM FINANCIAL STATEMENTS
For the six months ended 31 August 2016
1. Corporate information and principal activities
Bushveld Minerals Limited ("Bushveld") was incorporated and domiciled in Guernsey on 5 January 2012, and admitted to the AIM market in London on 26 March 2012.
The Bushveld Group comprises Bushveld Minerals Limited and its wholly owned subsidiaries headed by Bushveld Resources Limited ("BRL"), Greenhills Resources Limited ("GRL"), companies registered and domiciled in Guernsey together with their South African subsidiaries and Lemur Resources Limited ("Lemur") and its subsidiaries.
The wholly owned Guernsey subsidiaries BRL and GRL were acquired by Bushveld under the terms of a Share Exchange Agreement entered into on 15 March 2012.
BRL is an investment holding company formed to invest in resource-based iron ore exploration companies in South Africa. The South African subsidiaries are Pamish Investments No. 39 (Proprietary) Limited ("Pamish 39") in which BRL holds a 64% equity interest, Amaraka Investments No. 85 (Proprietary) Limited ("Amaraka 85") in which BRL holds 68.5% equity interest and Frontier Platinum Resources (Proprietary) Limited in which BRL holds 100% equity interest. The minority shareholder in Pamish 39 is Izingwe Capital (Proprietary) Limited and the minority shareholder in Amaraka 85 is Afro Multi Minerals (Proprietary) Limited.
GRL is an investment holding company formed to invest in resource-based tin exploration companies in South Africa. The South African subsidiaries are Mokopane Tin Company (Proprietary) Limited in which GRL holds 100% equity interest and Renetype (Proprietary) Limited ("Renetype") in which GRL holds a 74% equity interest. The minority shareholders in Renetype are African Women Enterprises Investments (Proprietary) Limited and Cannosia Trading 62 CC who own 10% and 16% respectively.
Lemur Resources Limited ("Lemur") is a coal project development company previously listed on the ASX. Through its wholly owned subsidiaries as detailed below, the Group is the holder of 11 concession blocks in South West Madagascar covering the Imaloto Coal Basin, known as the Imaloto Coal Project and Extension. In addition, the Group is in the final stages of acquiring two further blocks contiguous to the existing holdings subject to ministerial approval of the transfer. This project is known as the Imaloto Project Extension. Lemur owns two additional projects known as the Ianapera Coal Project and Sakaraha Coal Project.
NOTES TO THE UNAUDITED INTERIM FINANCIAL STATEMENTS
For the six months ended 31 August 2016
1. Corporate information and principal activities (continued)
As at 31 August 2016, the Bushveld Group comprised:
Company Equity holding Country of Nature of activities
and voting incorporation
rights
Bushveld Minerals N/A Guernsey Ultimate holding
Limited company
BRL(1) 100% Guernsey Holding company
Bushveld Energy (1) 84% Mauritius Holding company
Bushveld Energy (6) 100% South Africa Vanadium batteries
Pamish 39(2) 64% South Africa Iron ore exploration
Amaraka(2) 68.50% South Africa Iron ore exploration
Frontier Platinum(2) 100% South Africa Group support services
GRL(1) 100% Guernsey Holding company
Mokopane(3) 100% South Africa Holding company
Renetype(4) 74% South Africa Tin exploration
Lemur Resources Limited 100% Australia Holding company
(1)
Coal of Madagascar 100% Guernsey Holding company
Limited (5)
Coal Mining Madagascar 100% Madagascar Coal exploration
SARL(5)
Pamish Investments 100% Holding company
No 71 Proprietary
Limited(5)
Pan African Drilling 100% British Virgin Coal exploration
Limited(5) Islands
Imaloto Power Project 100% Mauritius Power generation
Limited(5) company
Lemur Investments 100% Mauritius Holding company
Limited(5)
Lemur Exploration 100% Madagascar Coal exploration
SARL(5)
Zaaiplaats Mining(5) 100% South Africa Tin exploration.
1 Held directly by Bushveld Minerals Limited
2 Held by BRL
3 Held by GRL
4 Held by Mokopane
5 Held by Lemur Resources Limited
6.Held by Bushveld Energy Limited
These financial statements are presented in Pound Sterling (GBP) because that is the currency the Group has raised funding on the AIM market in the United Kingdom.
2. Basis of preparation
The results presented in this report are unaudited and they have been prepared in accordance with the recognition and measurement principles of International financial Reporting Standards ('IFRS") as adopted by the EU that are expected to be applicable to the financial statements for the year ended 29 February 2017 and on the basis of the accounting policies to be used in those financial statements.
The interim financial information does not include all of the information required for full annual financial statements and accordingly, whilst the interim financial information has been prepared in accordance with the recognition and measurement principles of IFRS, it cannot be construed as being in full compliance with IFRS. The financial information contained in this announcement does not constitute statutory accounts as defined by the Companies (Guernsey) Law 2008.
The audited financial information for the year ended 29 February 2016 is based on the statutory accounts for the financial year ended 29 February 2016. The auditors reported on those accounts: their report was (i) unqualified, (ii) included an emphasis of matter relating to the uncertainties in respect to the Group's ability to continue as a going concern and (iii) did not contain statements where the auditor is required to report by exception.
NOTES TO THE UNAUDITED INTERIM FINANCIAL STATEMENTS
For the six months ended 31 August 2016
3. Use of estimates and judgements
In the application of the Group's accounting policies the directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
Estimates and judgements are continually evaluated. Revisions to accounting estimates are recognised in the period in which the estimates are revised if the revision affects only that period or in the period of revision and in future periods if the revision affects both current and future periods.
Management's critical estimates and judgements in determining the value of assets, liabilities and equity within the financial statements relate to the carrying value of intangible exploration assets of GBP57.7 million and the going concern assumptions.
The valuation of intangible exploration assets is dependent upon the discovery of economically recoverable deposits which, in turn, is dependent on future iron ore and tin prices, future capital expenditures and environmental and regulatory restrictions.
Going concern
In preparing the financial statements, the directors have considered the current financial position of the Group and the likely future cash flows for the forthcoming 12 months from the date of this report. As with all exploration groups at this stage of the resource development cycle and with no cash-flow from production, funding is derived through equity financing. Since posting of the 2016 Annual Financial Statements on 30 August 2016 the Company has raised funding through the following means in order to support its going concern status:
1. Issue of shares in September following a placing completed on 25 August 2016 of 38,666,668 new ordinary shares of 1.0 pence each in the Company at a price of 1.5 pence each raising gross proceeds of GBP580,000;
2. A placing completed on 21 October 2016 of 53,571,430 new ordinary shares of 1.0 pence each in the Company at a price of 1.4 pence each raising gross proceeds of GBP750,000.
Thus, the directors continue to adopt the going concern basis in preparing the Groups financial statements.
NOTES TO THE UNAUDITED INTERIM FINANCIAL STATEMENTS
For the six months ended 31 August 2016
4. Loss per share
From continuing operations
The basic loss per share is calculated using the total loss for the period attributable to the owners of the Company and the weighted average number of shares in issue during the period. There are no potentially dilutive shares in issue.
Six Months Six Months Year to 29
February 2016
to to (audited)
31 August 31 August
2016 2015
(unaudited) (unaudited)
Loss for the period
attributable to the
owners of the Company
(GBP) 32,763 847,095 1,699,000
Weighted average number
of shares in issue 503,520,451 486,337,438 460,361,182
Loss per share (pence) (0.01) (0.18) (0.39)
------------- ------------- ---------------
5. Intangible assets
Exploration Exploration
activities activities
- Vanadium - Tin Total
/ Iron
Ore
Cost GBP GBP GBP
------------------- ------------ ------------ -----------
As at 28 February
2015 37,919,544 17,851,700 55,771,244
--------------------- ------------ ------------ -----------
Additions 751,423 78,569 829,992
As at 31 August
2015 38,670,967 17,930,269 56,601,236
--------------------- ------------ ------------ -----------
Additions 583,208 84,813 668,021
Foreign Exchange
adjustment (605,074) (277,689) (882,763)
---------------------
As at 29 February
2016 38,649,101 17,737,393 56,386,494
--------------------- ------------ ------------ -----------
Additions 600,729 - 600,729
Foreign exchange
adjustment 674,731 - 674,731
As at 31 August
2016 39,924,561 17,737,393 57,661,954
--------------------- ------------ ------------ -----------
The Company's subsidiary, Bushveld Resources Limited has a 64% interest in Pamish Investment No 39 (Proprietary) Limited ("Pamish") which holds an interest in Prospecting right 95 ("Pamish 39"). Bushveld Resources Limited also has a 68.5% interest in Amaraka Investment No 85 (Proprietary) Limited ("Amaraka") which holds an interest in Prospecting right 438 ("Amaraka 85").
Under the agreements to acquire the licenses within Bushveld Resources, the group is required to fully fund the exploration activities up to the issue of the corresponding mining licenses. As the non-controlling interest party retains their equity interest, the funding of their interest is accounted as deemed purchased consideration and is included in the additions in the period to exploration activities. A corresponding increase is credited to non-controlling interest.
NOTES TO THE UNAUDITED INTERIM FINANCIAL STATEMENTS
For the six months ended 31 August 2016
The Company's other directly owned subsidiary, Greenhills Resources Limited, has a 74% interest in Renetype (Proprietary) Limited ("Renetype") which holds an interest in Prospecting right 2205 ("Renetype 2205").
Through Lemur Resources Limited's wholly owned subsidiary Coal Mining Madagascar Limited, Lemur is the holder of 11 concession blocks in South West Madagascar covering the Imaloto Coal Basin, known as the Imaloto Coal Project and Extension. In addition, the company is in the final stages of acquiring two further blocks contiguous to the existing holdings subject to ministerial approval of the transfer. This project is known as the Imaloto Project Extension. Lemur holds two further projects known as the Ianapera Coal Project and Sakaraha Coal Project.
During the period, Lemur Resources Limited signed a binding term sheet to acquire the Brits Vanadium project, as announced 14 August 2015, with the acquisition completing post period end. The Brits Project comprises new order prospecting rights on the properties Portion 3 of Uitvalgrond 431 JQ and the remaining extent of Doornpoort 295 JR, and a contested mining right application on the farms Syferfontein 430 JQ and Portion 2 of Uitvalgrond 431 JQ. Collectively, the mineral rights are for vanadium, iron ore and rutile.
6. Property, plant and equipment
Fixtures
Mining Motor Geological and
asset vehicles equipment fittings Total
GBP GBP GBP GBP GBP
Cost
At 31 August 2015 - 43,953 230,000 18,788 292,741
Additions 206,272 - 65,073 4,337 275,682
Exchange differences - (3,277) (18,801) (7,701) (29,779)
------------------------------ -------- --------- ---------- ---------- --------
Cost At 29 February 2016 206,272 40,676 276,272 15,514 538,734
------------------------------ -------- --------- ---------- ---------- --------
Additions - - - - -
Exchange differences 11,107 5,582 - 7,469 24,158
------------------------------ -------- --------- ---------- ---------- --------
Cost At 31 August 2016 217,379 46,258 276,272 22,983 562,892
------------------------------ -------- --------- ---------- ---------- --------
Depreciation 31 August
2015 - 43,953 173,427 14,404 231,784
Charge for the period - 2,080 7,802 2,095 11,977
Exchange differences - (5,357) (15,008) (5,867) (26,232)
Depreciation at 29 February
2016 - 40,676 166,221 10,632 217,529
------------------------------ -------- --------- ---------- ---------- --------
Charge for the period - - 7,730 1,703 9,433
Exchange differences - 5,582 - 1,186 6,768
------------------------------ -------- --------- ---------- ---------- --------
Depreciation at 31 August
2016 - 46,258 173,951 13,521 233,750
------------------------------ -------- --------- ---------- ---------- --------
Net book value
At 31 August 2015 - - 56,573 4,384 60,957
============================== ======== ========= ========== ========== ======== At 29 February 2016 206,272 - 110,051 4,882 321,205 ============================== ======== ========= ========== ========== ======== At 31 August 2016 217,379 - 102,321 9,462 329,142 ============================== ======== ========= ========== ========== ========
The depreciation charge for the period has been capitalised as exploration activities in the period.
NOTES TO THE UNAUDITED INTERIM FINANCIAL STATEMENTS
For the six months ended 31 August 2016
7. Trade and other receivables
Six months Six months
to to Year to 29
31 August 31 August February
2016 (unaudited) 2015 (unaudited) 2016 (audited)
GBP GBP GBP
Advances and deposits 1,244,922 9,028 2,625,000
Other receivables 709,888 526,488 441,855
------------------ ------------------
1,954,810 535,516 3,066,855
================== ================== ================
8. Financial liabilities
Six months Six months
to to Year to
31 August 31 August 29 February
2016 (unaudited) 2015 (unaudited) 2016 (audited)
GBP GBP GBP
Short term loans 519,800 2,756,000 2,984,044
Trade payables 247,258 549,577 152,409
Accruals 328,127 392,148 375,178
------------------ ------------------
1,095,185 3,697,725 3,511,631
================== ================== ================
NOTES TO THE UNAUDITED INTERIM FINANCIAL STATEMENTS
For the six months ended 31 August 2016
9. Share capital and share premium
Number of Shares Issue Price Nominal Value Share Premium TOTAL SHARE
Issued per Share of Shares CAPITAL AND
of 1 pence PREMIUM
each
GBP GBP GBP GBP
Share Capital and Premium at 31 August 2015
and 29 February
2016 486,337,438 4,863,373 59,927,541 64,790,914
Capital raise 9 June 2016 48,333,334 0.018 483,333 386,667 870,000
Shares issued 14 June 2016 50,000,000 0.018 500,000 400,000 900,000
Shares issued 22 June 2016 7,000,000 0.018 70,000 56,000 126,000
Share Capital and Premium 31 August 2016 591,670,772 5,916,706 60,770,208 66,686,914
---------------- ----------- ------------- ------------- ------------
Share Capital and Premium 31 August 2016
As at 29 February and 31 August 2016 the Company owned
670,000 treasury shares with a nominal value of 1 pence
(31 August 2015 Nil).
Placings and subscription after the reporting date
Subsequent to 31 August 2016 there have been two placings
and subscriptions undertaken by Beaufort Securities Limited
on behalf of Bushveld Minerals Limited
On 1 September 2016 38,666,668 shares with a nominal value
of GBP0.015 per share raising net proceeds of GBP514,500.19,333,334
warrants were granted to the placees for two years at
GBP0.024 expiring on 31 August 2018. Beaufort Securities
Limited were granted 3,886,687 warrants a GBP0.015 expiring
in 5 years after admission for their role in the placing.
On 27 October 2016 53,571,143 shares with a nominal value
of GBP0.01 were Placed by Beaufort Securities Limited
at a subscription price of GBP0.014 Beaufort Securities
were granted 5,357,143 warrants GBP0.028 per share expiring
in three years after admission.
The Board may, subject to Guernsey Law issue shares or
grant rights to subscribe for or convert securities into
shares. It may issue different classes of shares ranking
equally with existing shares. It may convert all or any
classes of shares into redeemable shares. The Company
may also hold treasury shares in accordance with the law.
Dividends may be paid in proportion to the amount paid
up on each class of shares.
NOTES TO THE UNAUDITED INTERIM FINANCIAL STATEMENTS
For the six months ended 31 August 2016
10. Warrants
The following warrants were granted during the year ended 29 February 2016 and the six months to 31 August 2016
Warrants granted ---------------------- ----------- ----------- ----------- ----------- ----------- Date of grant 28/05/2015 06/06/2016 09/06/2016 09/06/2016 09/06/2016 Number granted 4,000,000 25,000,000 4,833,333 652,000 434,000 Contractual life 5 years 2 years 5 years 4 years 4 years Estimated fair value GBP0.001 GBP0.001 GBP0.001 GBP0.001 GBP0.001 per warrant ---------------------- ----------- ----------- ----------- ----------- ----------- Date of grant 24/08/2016 24/08/2016 Number granted 19,333,334 3,886,667 Contractual life 2 years 5 years Estimated fair value GBP0,001 GBP0,001 per warrant ---------------------- ----------- ----------- Warrant scheme ---------------------- ----------- ----------- ----------- ----------- ----------- Date of grant 28/05/2015 06/06/2016 09/06/2016 09/06/2016 09/06/2016 Share price at grant GBP0.040 GBP0.018 GBP0.018 GBP0.018 GBP0.018 date Exercise price GBP0.10 GBP0.024 GBP0.024 GBP0.046 GBP0.069 Expected life 5 years 2 years 5 years 4 years 4 years Expected volatility 65.00% 58.40% 58.40% 58.40% 58.40% Expected dividends Nil Nil Nil Nil Nil Risk-free interest rate 2.99% 0.51% 0.51% 0.51% 0.51% ---------------------- ----------- ----------- ----------- ----------- ----------- Date of grant 24/08/2016 24/08/2016 Share price at grant GBP0.015 GBP0.015 date Exercise price GBP0.024 GBP0.015 Expected life 2 years 2 years Expected volatility 60.70% 60.70% Expected dividends Nil Nil Risk-free interest rate 1.81% 1.81% ---------------------- ----------- -----------
The warrants issued during the year are as follows:
Number of warrants Weighted average
exercise price
GBP
------------------------------------- ------------------- -----------------
Outstanding at 1 March 2015 30,473,089 -
Granted during the year 29 February
2016 4,000,000 0.028
Lapsed during the year (23,965,114) 0.028
------------------------------------- ------------------- -----------------
Outstanding at 29 February 2016 10,507,975 0.028
Granted during this period 54,139,334 0.033
Exercisable at 31 August 2016 64,647,309 0.033
------------------------------------- ------------------- -----------------
NOTES TO THE UNAUDITED INTERIM FINANCIAL STATEMENTS
For the six months ended 31 August 2016
11. Darwin Strategic Limited
Bushveld Minerals entered into a GBP2,600,000 facility agreement with Darwin Strategic Limited on 28 May 2015.
Darwin agreed to make available to Bushveld, a Sterling loan of GBP400,000 for general working capital purposes and further loans in aggregate, up to GBP2,200,000 to fund Bushveld Minerals reasonable and proper acquisition costs of shares of Lemur not already owned by Bushveld.
The funding is in the form of a senior unsecured loan facility which attracts interest at 1.5% per month and was repayable by the maturity date of 29 November 2015 unless Darwin Strategic elected to convert a portion of the facility into Bushveld shares. The working capital loan was drawn down on 29 May 2015 and the loan to fund the reasonable acquisition costs of shares of Lemur was drawn down on 31 July 2015.
The Company has negotiated and agreed with Darwin to amend the agreement to allow Bushveld and Darwin to explore and consider acquisition opportunities. Under the revised terms, the maturity date of the facility was extended to 29 February 2016. Bushveld placed an amount equal to the principal of the facility being a total of GBP2,600,000 in an escrow account. Interest continued to be payable at a rate of 1.5% per month. Interest accrued at 29 February 2016 amounted to GBP351,000.
The principal sum of GBP2.6 million was repaid to Darwin on 6 May 2016 having been released from escrow. A further amount of GBP78,000 of interest was incurred. The total interest due to Darwin at the repayment date amounted to GBP429,000.
Bushveld Minerals were unable to repay the interest due to Darwin thereby incurring a penalty.
An amount of GBP514,800 being the accumulated outstanding interest plus including the penalty for late settlement was paid to Darwin Strategic on 8 November 2016.
12. Events after the reporting date
Details of events after the reporting date are provided in the performance report on page 5.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR MMMZMZRRGVZZ
(END) Dow Jones Newswires
November 29, 2016 02:01 ET (07:01 GMT)
1 Year Bushveld Minerals Chart |
1 Month Bushveld Minerals Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions
