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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Bezant Resources Plc | LSE:BZT | London | Ordinary Share | GB00B1CKQD97 | ORD 0.002P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.001 | 5.56% | 0.019 | 0.017 | 0.021 | 0.019 | 0.0175 | 0.0175 | 66,558,352 | 09:12:30 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Gold Ores | 0 | 1.44M | 0.0002 | 1.00 | 1.54M |
From May 2019 to May 2024
TIDMBZT
RNS Number : 0867H
Bezant Resources PLC
05 June 2017
5 June 2017
Bezant Resources Plc
("Bezant" or the "Company")
Final Results for the Six Months Ended 31 December 2016
Bezant (AIM: BZT), the AIM quoted mineral exploration and development company, announces its audited final results for the six months ended 31 December 2016.
Highlights:
Corporate:
-- Change of financial year end to 31 December
-- GBP1.2m loss after tax 6 month ended 31 December 2015 (unaudited): GBP0.3m; (12 months ended 30 June 2016: GBP9.1m)
-- Impairment charge of GBP0.2m (12 months ended 30 June 2016: GBP8.3m) related to the Company's Mankayan Copper-Gold Project, Philippines)
-- Approximately GBP0.2m cash at bank at the period end (30 June 2016: GBP0.3m)
Platinum and Gold Mining Project, Choco District, Colombia:
-- 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 with objectives including;
o Identifying priority alluvial areas containing platinum and gold
o Analysis of historic recovery rates and assessing how the application of modern technology / processing can improve on historical recoveries
o First production targeted for Q2/Q3 2017
-- 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
-- All relevant permits and permissions in place to begin trial recovery programme; strong community and regional government programme in place
-- Bulk sampling programme commenced recovering first gold-platinum metal with Exumax
-- Commissioned independent scoping study to assess project economics and production sensitivities
Mankayan Copper-Gold Project, Philippines (the "Mankayan Project" or "Mankayan"):
-- Notification received in February 2017 from the Philippines Department of Envirponment and Natural Resources with respect to the potential cancellation of the Mankayan Project's Mineral Production Sharing Agreement. Mankayan Project fully impaired last year 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:
-- GBP1,189,000 raised before expenses, through a placement and subscription for 21,050,000 new ordinary shares by certain new and existing investors, both at a price of 2.0 pence per new ordinary share
-- Successful production confirmation results from Colombia gold-platinum licences
o Production economics established for the FKJ-083 licence area, correlating historic mining data from previous operations with current exploration and processing results
o INGEX scoping study successfully concluded with all in OPEX costs estimated at US$760/oz based on a 12 month pilot operation
-- Commenced pipeline of further exploration and evaluation work to establish prospective production zones by acquiring a fully-equipped, purpose built, modern alluvial processing plant, which is:
o currently situated in Colombia and ready for mobilisation to site:
o a mercury-free alluvial processing plant capable of processing up to 100m(3) of material per hour (approximately 150 tonnes per hour)
o the first modern plant of its kind to be utilised on the deposit o on track for plant commissioning in Q2 2017 followed by first production in early Q3 2017
-- To enable the expansion of future production, the Company also acquired engineering blue prints and all technical plans, schematics and data to enable Bezant to replicate and manufacture similar processing plants in Colombia
Commenting today, Ed Nealon, Chairman of the Company, said:
"This reporting period has been one of intense activity, as Bezant began to make operational assessments over the viability of gold and platinum production a for its Choco licences under option in Colombia. At a time when many platinum producers and miners are generally suffering from increasing costs to mine underground, our near surface operations, while not massive in scale, will target near-term production with good margins. The independent scoping study estimated total operational costs at US$768 per ounce of platinum and gold recoveries based on a 12 month pilot production project."
Commenting today Bernard Olivier, Chief Executive Officer, said:
"Following our gold-platinum recovery work and the results of the independent scoping study concluded post period end, we can now commence work towards first, full-scale gold-platinum recovery operations. Having now secured both an expert operating team and equipment, our objective is to begin first production of metals during Q2/Q3 2017."
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 six months ended 31 December 2016, following the change to the Company's accounting reference date from 30 June to 31 December in order to bring our reporting calendar in line with the calendar year, and to report on the Company's on-going activities to the date of this statement. This change in our financial year end has been made with the approval of our auditors ahead of targeted future gold and platinum sales being initiated during 2017 at the Company's Choco Alluvial Gold-Platinum Project (the "Choco Project") located in Western Colombia.
For the six month period ended 31 December 2016, the Group reported a loss before and after tax of GBP1.18m. The second half of 2016 was one of intense activity as Bezant began to make operational assessments over the viability of gold and platinum production from the licence areas under option in Choco, Colombia. At this point, I believe it is worthwhile recapping for shareholders what our objectives have been to date in progressing our Colombian operations and making them the core focus of the Company.
Historically, Bezant has returned cash to shareholders and built value from its Mankayan copper-gold asset in the Philippines which was the subject of a series of option payments from Gold Fields Netherlands Services BV, but where the full potential upside was ultimately unfulfilled due to changes in the Group's portfolio strategy and the persistent and on-going political risk in the Philippines. While the board of Bezant was, for some time, involved in detailed discussions with specific parties on an alternate project realisation event for Mankayan, the increased uncertainty surrounding title in the Philippines combined with the size of capital expenditure associated with such a large scale block caving operation, ultimately led us to the conclusion that near-term shareholder value for the company could best be driven from nearer term production assets with lower capital expenditure for project costs and more robust economic margins. Rather than await transactional value from pure exploration activities, we wished to seek to bring cash flow into the Company rapidly in order to build a profitable business and insulate shareholders from continuing dilution. While we have naturally had to raise funds to deliver on this objective, including the GBP1.19m gross fundraising conducted in September 2016, corporate overheads have been reduced to a bare minimum and we have been highly successful during, and post the period end, in hitting our key milestones and are now poised to begin first platinum and gold recovery at our Choco Project site.
Our capital allocation strategy over the period was staged, ensuring that funds were spent incrementally with decisions triggered by the completion of key working tasks. The primary focus in 2016 at the Choco Project was on licence area FKJ-083 that has previously been host to the largest modern mining operation in Colombia which afforded us access to many years of production data reporting via national tax reports. With such production reports providing valuable and verifiable evidence of the gold and platinum that had historically been profitably recovered from the licence area, Bezant's operations team looked to carry out a bulk sampling and production verification programme.
Progressing onto this advanced phase of pre-development work, Bezant also entered into an agreement with Exumax S.A.S. ("Exumax"), a highly experienced contracting group specialising in alluvial mining projects with 6 years' experience in-country. The agreement can be summarised as a 'costs only' payment arrangement with any substantive value for Exumax being realised from value growth in Bezant's equity. My own experience in dealing with contractors is that you have to select the right group and make sure all parties are firmly aligned with the targeted, profitable success of a project.
Following completion of the initial Exumax exploration agreement, we then began the verification programme in respect of historic mining activities over the FKJ-083 licence area with 22 test pits completed during the period to depths of 4 to 12 metres. A total of 95 individual samples between 0.25 and 1.0 loose cubic metres (LCM) were obtained. Post period end, I was pleased to report that the recovery results had confirmed the historic mining reports as being accurate.
The Bezant-Exumax team has significant experience in gold-platinum and alluvial recovery and while the final laboratory results were not completed until April 2017, the levels of visible gold and platinum observed during the test pitting programme led us to take the decision to commission an independent scoping study in order to assess the current economic sensitivities relating to potential production scenarios. Further to this decision, INGEX Grupo Minero SAS ("INGEX") was selected to undertake the requisite work with its findings being published in March 2017. The INGEX report confirmed the technical and economic feasibility of alluvial platinum (Pt) and gold (Au) production at the Choco Project based on historical data and drilling results.
At a time when many platinum producers and miners are generally suffering from increasing costs for underground operations, our near surface operations, while not massive in scale, target near-term production with good margins. The independent scoping study estimated total production costs at US$768 per ounce of platinum and gold recoveries, based on a 12 month pilot operation.
Another benefit, sometimes overlooked, of the Choco Project is that all precious metals recovered from the Choco alluvial platinum mining region are historically 'free', which does not necessitate the requirement for metallurgical separation processes to recover saleable material. This is yet another factor that commended the Choco Project to us, a region of Colombia that I first visited some 20 years ago, since penalties or smelter impurities are frequently a significant issue for mining operations. The product we intend to produce from Choco, in H2 2017, can be sold easily from a production methodology that is tried and tested with few complications, while simultaneously being an efficient and well run mining operation.
Following first production, our intent is not to prove up a JORC (2012) resource estimate, diversify into tailings at site, or simply build an expensive piece of equipment. Our aim instead is to generate sustainable cash flow by constructing small, inexpensive plants that can be readily moved around this sizeable platinum and gold district. I would like to thank our shareholders for their continued support, as well as our team who have dedicated themselves to rapidly reaching the pre-production stage and who, in September 2016, converted their unpaid salary from 1 June 2016 to September 2016 into shares in the Company at a premium to the prevailing closing mid-market share price.
I look forward to providing further updates on the progress of our mining operations in Colombia in due course.
Mr Edward Nealon
Non-Executive Chairman
2 June 2017
Group Statement of Comprehensive Income
For the six months ended 31 December 2016
Notes Audited Unaudited Audited
Six Months Six months 12 months
ended ended ended
31 December 31 December 30 June
2016 2015 2016
GBP'000 GBP'000 GBP'000
Continuing operations
Group revenue - - -
Cost of sales - - -
------------- ------------- -----------
Gross profit/(loss) - - -
Operating expenses (1,027) (192) (717)
Group operating loss (1,027) (192) (717)
Other income 2 - -
Interest receivable - 1 1
Impairment 2 (155) - (8,278)
Share of Associates'
loss - (74) (136)
------------- ------------- -----------
Loss before taxation (1,180) (265) (9,130)
Taxation - - -
------------- ------------- -----------
Loss for the period (1,180) (265) (9,130)
============= ============= ===========
Attributable to:
Owners of the Company (1,172) (265) (9,114)
Non-controlling interest (8) - (16)
------------- ------------- -----------
(1,180) (265) (9,130)
============= ============= ===========
Other comprehensive
income:
Foreign currency
reserve movement (66) 160 499
------------- ------------- -----------
Total comprehensive
loss for the period (1,246) (105) (8,631)
============= ============= ===========
Attributable to:
Owners of the Company (1,235) (105) (8,609)
Non-controlling interest (11) - (22)
------------- ------------- -----------
(1,246) (105) (8,631)
============= ============= ===========
Loss per share (pence)
Basic and diluted 3 (0.67) (0.29p) (8.42)
============= ============= ===========
Consolidated Statement of Changes in Equity
For the six months ended 31 December 2016
Non-Controll
Share Share Other Retained ing Total
Capital Premium Reserves Losses interest Equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Audited - six
months ended
31 December 2016
Balance at 1
July 2016 274 32,048 1,054 (26,584) (43) 6,749
Current period
loss - - - (1,172) (8) (1,180)
Foreign currency
reserve - - (63) - (3) (66)
Total comprehensive
loss for the
period - - (63) (1,172) (11) (1,246)
--------- --------- ---------- --------- ------------- ---------
Proceeds from
shares issued 122 1,031 - - - 1,153
Issue of ordinary
shares related
to business combination 14 148 - - - 162
Balance at 31
December 2016 410 33,227 991 (27,756) (54) 6,818
========= ========= ========== ========= ============= =========
Unaudited - six
months ended 31
December 2015
Balance at 1
July 2015 166 31,053 549 (17,470) - 14,298
Current period
loss - - - (265) - (265)
Foreign currency
reserve - - 160 - - 160
Total comprehensive
loss for the
period - - 160 (265) - (105)
---- ------- ---- --------- -------
Proceeds from
shares issued 33 368 - - - 401
Balance at 31
December 2015 199 31,421 709 (17,735) - 14,594
==== ======= ==== ========= =======
Audited - 12 months
ended 30 June 2016
Balance at 1
July 2015 166 31,053 549 (17,470) - 14,298
Current period
loss - - - (9,114) (16) (9,130)
Foreign currency
reserve - - 505 - (6) 499
Total comprehensive
loss for the
period - - 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
==== ======= ====== ========= ====== ========
Consolidated Balance Sheet
As at 31 December 2016
Audited Audited
31 December 30
2016 June
2016
Notes GBP'000 GBP'000
ASSETS
Non-current assets
Plant and equipment 20 55
Intangible assets 4 1,834 1,620
Exploration and evaluation
assets 4,790 4,790
------------ ---------
Total non-current assets 6,644 6,465
------------ ---------
Current assets
Trade and other receivables 73 115
Cash and cash equivalents 229 261
------------ ---------
Total current assets 302 376
------------ ---------
TOTAL ASSETS 6,946 6,841
LIABILITIES
Current liabilities
Trade and other payables 128 92
------------ ---------
Total current liabilities 128 92
------------ ---------
NET ASSETS 6,818 6,749
============ =========
EQUITY
Share capital 410 274
Share premium 33,227 32,048
Share-based payment reserve 265 265
Foreign exchange reserve 726 789
Retained losses (27,756) (26,584)
------------ ---------
EQUITY ATTRIBUTABLE TO OWNERS
OF THE PARENT 6,872 6,792
NON-CONTROLLING INTEREST (54) (43)
------------ ---------
TOTAL EQUITY 6,818 6,749
============ =========
Consolidated Statement of Cash Flows
For the six months ended 31 December 2016
Audited Unaudited Audited
Six Six 12
months months months
ended ended ended
31 December 31 December 30 June
2016 2015 2016
Notes GBP'000 GBP'000 GBP'000
Net cash outflow from operating
activities 5 (950) (288) (813)
------------- ------------- ---------
Cash flows from investing
activities
Interest received - 1 1
Other income 24 7 22
Acquisition of plant and
equipment (3) - -
Deferred exploration expenditure - (2)
Option payments (91) (33) -
Acquisition of subsidiary,
net of cash acquired - - (669)
Loans to associates and subsidiaries (155) (291) (496)
(225) (316) (1,144)
------------- ------------- ---------
Cash flows from financing
activities
Proceeds from issuance of
ordinary shares 1,118 401 401
1,118 401 401
Decrease in cash (57) (203) (1,556)
Cash and cash equivalents
at beginning of period 261 1,679 1,679
Foreign exchange movement 25 74 138
------------- ------------- ---------
Cash and cash equivalents
at end of period 229 1,550 261
============= ============= =========
Notes to the financial information
For the six months ended 31 December 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
six months ended 31 December 2016 or 12 months
ended 30 June 2016, but is derived from those
financial statements, approved by the board
of directors. The auditors' report on the 31
December 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, inter alia, an 'emphasis of matter'
paragraph relating to going concern. The full
audited financial statements for the six months
ended 31 December 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 six months ended 31 December 2016 after
tax of GBP1.2 million (six months ended 31 December
2015 (unaudited): GBP0.3 million; 12 months
ended 30 June 2016: GBP9.1 million), had negative
cash flows from operations and is currently
not generating revenues. Cash and cash equivalents
were GBP229,000 as at 31 December 2016. The
Group raised in aggregate, GBP1,000,000 before
expenses, through a conditional placement subsequent
to the period end. 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 more of
its options over certain 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 report and financial
statements.
2. Impairment Audited Unaudited Audited
12 months
Six months Six months ended
ended ended 30
31 December 31 December June
2016 2015 2016
GBP'000 GBP'000 GBP'000
Impairment loss on loan
to associate 155 - 3,310
Impairment loss on investment
in associate - - 4,968
------------- ------------- ----------
155 - 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 six months ended
31 December 2016 of GBP1,172,000 (six months
ended 31 December 2015 (unaudited): GBP265,000;
12 months ended June 2016: GBP9,114,000). The
basic loss per share was calculated using a
weighted average number of shares in issue
of 175,167,279 (six months ended 31 December
2015: 92,437,573; 12 months ended June 2016:
108,279,905).
The diluted loss per share has been calculated
using a weighted average number of shares in
issue and to be issued of 177,565,079 (six
months ended 31 December 2015 (unaudited):
96,079,465; 12 months ended June 2016: 110,677,705).
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. Intangible assets
Audited Audited
31 30
December June
2016 2016
GBP'000 GBP'000
4.1 Option to acquire exploration
licence
Balance at beginning of period 1,620 -
Acquisitions through business
combinations - Colombian projects'
rights over platinum and gold
licence areas - 1,620
Additions 91 -
Exchange differences (39) -
---------- --------
Carried forward at end of period 1,672 1,620
---------- --------
4.2 Intellectual property rights over
proprietary geological data
Balance at beginning of period - -
Acquisitions through business
combinations - Rights over geological
information and other data 162 -
Carried forward at end of period 162 -
---------- --------
Total intangibles 1,834 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 PGM
prices are currently depressed, significant
pressure on major platinum sources and depleting
stock-piles should enable Bezant to realise
potentially significant margins from the 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. Post the balance
sheet date, the options held over the FKJ-083
and HCA-082 licences were exercised.
The intellectual property rights represent
proprietary geological information and other
data utilised in exploration activities.
The directors have assessed the value of these
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
Audited Unaudited Audited
Six Six 12
months months months
ended ended ended
31 December 31 December 30 June
2016 2015 2016
GBP'000 GBP'000 GBP'000
Operating loss (1,027) (192) (717)
Depreciation and amortisation 3 3 6
VAT refunds received (24) (7) (22)
Foreign exchange gain (14) (84) (146)
Decrease in receivables 45 (23) 54
Increase in payables 67 15 12
------------- ------------- ---------
Net cash outflow from operating
activities (950) (288) (813)
============= ============= =========
6. Availability of Annual Report and Financial
Statements
Copies of the Company's full Annual Report and
Financial Statements are expected to be posted
tomorrow 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, 30 June
2017 and a formal Notice of AGM and proxy form
will also be posted tomorrow 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
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June 05, 2017 02:00 ET (06:00 GMT)
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