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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Bushveld Minerals Limited | LSE:BMN | London | Ordinary Share | GG00B4TM3943 | ORD 1P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| -0.01 | -1.52% | 0.65 | 0.60 | 0.70 | 0.725 | 0.625 | 0.625 | 16,948,778 | 14:41:39 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Minrls,earths-ground,treated | 151.18M | -38.97M | -0.0166 | -0.39 | 15.23M |
From Apr 2019 to Apr 2024
TIDMBMN
RNS Number : 7761X
Bushveld Minerals Limited
29 November 2017
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.
29 November 2017
Bushveld Minerals Limited
("Bushveld" or the "Company")
Unaudited interim results performance report for the period ended 31 August 2017
Bushveld Minerals Limited (AIM: BMN), a mineral project development company with a portfolio of vanadium and coal assets in Southern Africa and an investment in tin, is pleased to announce its results, including an operational update for the six months ended 31 August 2017.
Commenting on the results, CEO Fortune Mojapelo said:
"I am pleased to present the interim financials for the half year ended 31 August 2017. The period under review saw Bushveld Minerals continue its steady progress into a significant low cost, integrated vanadium producer, anchored in the completion of the acquisition of Strategic Minerals Corporation, in partnership with Yellow Dragon Holdings. The timing of the completion could not have been better, occurring during a time of significant increases in the vanadium price contributing to a marked improvement in Vametco's profitability and cash generation.
Our positive outlook on the vanadium market has been vindicated with sustained price growth during the period under review. This market outlook provides a sound backdrop for the Company's push to grow the vanadium platform through expansion initiatives at Vametco as well as targeted brownfield opportunities close in proximity to the Company's deposits. We are mindful of the need to grow our human capital base and have started a process to add to the leadership team. In this regard, I am pleased to welcome Prince Nyati as CEO of Lemur Holdings and Chika Edeh as the new Head of Investor Relations. The Company looks forward to further strengthening our team in the coming months.
I am encouraged by the significant progress at Bushveld Energy, which recently announced the first deployment of a vanadium redox flow battery ("VRFB") to be installed at the testing centre of the South African utility, Eskom. We believe this is an important step towards unlocking the large scale energy storage opportunities in South Africa, in preparation for which the company is steadily progressing its studies for the local manufacturing of vanadium electrolyte as well as the assembly of VRFBs in South Africa.
Furthermore, the signing of the Power Purchase Agreement between Lemur Holdings, through its Madagascan subsidiary Imaloto Power Project SARL, and JIRAMA is a critical milestone in the development of Lemur's integrated coal-to-power project. This achievement, coupled with the on-going progress on the project's bankable feasibility study adds significant value to the project and brings it even closer to implementation. Finally, with the successful listing of AfriTin Mining Limited on the AIM market, we have taken a major step in establishing a significant and independent African tin platform.
This has been an incredibly busy period for the Company, and one that has seen us take some very significant steps in delivering our strategy. We look forward to providing further updates as we continue developing each of our platforms as independent entities with dedicated resources."
Highlights:
Bushveld is making significant progress to becoming the world's largest, low cost, integrated primary vanadium producer that benefits from a high grade resource base under its ownership.
Bushveld Resources Limited
Strategic Minerals Corporation Acquisition
-- On 6 April 2017, Bushveld Vametco Limited, in partnership with Yellow Dragon Holdings Limited, completed the acquisition of a 78.8% shareholding in Strategic Minerals Corporation (the ultimate holding company of Vametco Alloys Proprietary Limited).
Agreement with Wogen Resources Limited
-- On 20 March 2017, Bushveld announced that on 17 March 2017 it had signed a definitive Sales and Marketing Agreement with Wogen Resources Limited ("Wogen").
-- On 22 August 2017, Bushveld announced that it had agreed with Wogen to retire in full the US$3 million prepayment facility and to simultaneously increase the Vametco working capital facility by same amount from US$6 million to US$9 million.
-- On 24 August 2017, Bushveld announced that Vametco had agreed to increase the working capital facility governed by the definitive Sales and Marketing Agreement with Wogen from US$9 million to US$11 million with immediate effect.
Agreement with Barak Fund SPC Limited
-- On 30 March 2017, Bushveld announced that it had completed and signed the financing agreement for the Vametco acquisition with Barak Fund SPC Limited ("Barak Fund").
-- On 8 June 2017, Bushveld advised that it had repaid the remaining US$1.0 million principal of the US$11.0 million bridge loan facility (entered into between Bushveld and Barak Fund).
-- On 15 June 2017, Bushveld announced that it had paid the outstanding US$ 961,010 in fees and interest to Barak Fund, completing the payment of all outstanding obligations to Barak Fund.
Vametco Operational Review 6 months ended 30 June 2017
-- The half-year to 30 June 2017 saw production levels similar to 2016 with 1,441 metric tonnes vanadium ("mtV") produced. Under the oversight of Bushveld and Yellow Dragon, Vametco commenced a multi-phased expansion project to increase annual production to more than 5,000 mtV over the next three years.
-- Reported revenue in the period improved markedly from 2015 and 2016, largely due to increased vanadium prices. During the first half of 2017, EBITDA increased to ZAR85.5 million (US$6.5 million).
Bushveld-Supported Acquisition of BEE Shareholding in Evraz Vametco
-- On 5 June 2017 Bushveld confirmed that its Black Economic Empowerment ("BEE") partner of choice, Jaxson 640, had completed its acquisition of a 21.2% stake in the Vametco vanadium mine.
Bushveld Energy Limited
Completion of studies carried out in conjunction with the Industrial Development Corporation ("IDC")
-- Market studies for African VRFB demand and global electrolyte demand have been completed and indicate:
-- Favourable demand for VRFBs, especially in the utility and off-grid, mini-grid use cases, peaking in 2025-2030;
-- Global electrolyte demand likely to peak in the same time frame at 1200-1800 megawatt hours ("MWh") or 40-60 megalitres ("ML") per annum;
-- Potential for Bushveld to conservatively supply an initial 5-10ML of this demand, supporting supply of an initial 200MWh in energy storage per annum;
-- At present, the electrolyte market is dominated by China, with 90% of global production capacity, with smaller facilities in Europe and batch production in other regions.
-- Bushveld Energy and the IDC are also progressing the techno-economic study on a vanadium electrolyte production plant to be located in South Africa. The study results highlighted that:
-- Bushveld can manufacture electrolyte on a cost-competitive basis, thereby allowing it to compete both regionally and globally;
-- A scalable plant can be configured with an initial annual production capacity of 200-400MWh;
-- The estimated initial capital expenditure for the plant of ZAR130 million (US$9.7 million), of which more than 75% comprises balance of plant;
-- There is scope to reduce the capital expenditure further through co-locating the electrolyte plant with Vametco Alloys (Proprietary) Limited, the primary vanadium producing mine and plant in Brits, Northwest Province, South Africa;
-- The most significant driver of costs (upwards of 70%) is the vanadium feedstock, making locally available, low-cost supply a critical success factor and natural competitive advantage for South Africa.
Increased participation by Bushveld Energy in global energy storage industry platforms, such as the Energy Storage Committee ("ESC") of Vanitec, will continue to support the emerging leadership role of Bushveld Energy in the energy storage market.
Lemur Holdings
-- On 5 April 2017, Bushveld announced the signing of a Memorandum of Understanding ("MoU") between its wholly-owned subsidiary, Lemur Holdings, and Sinohydro Corporation Limited, a subsidiary of Power China Limited. The MoU gave both companies exclusive rights to work with each other on the development of an initial 60 megawatts ("MW") independent power producer coal power plant and associated 200 kilometre transmission line in southern Madagascar.
Greenhills Resources Limited
-- On 15 June 2017, Greenhills completed the acquisition of a 49.5% interest in the Uis Tin Project from a consortium of Namibian shareholders.
Organisational update
Continuing significant developments across the Company's three platforms requires Bushveld to review its human capital to ensure it has sufficient capacity to execute on its strategy going forward. As such the Company made the following appointments:
-- Prince Nyati has been appointed CEO of Lemur Holdings and takes over from Anthony Viljoen who has taken up the role of CEO of AfriTin Mining Limited ("AfriTin"). Prince has over 15 years' experience in Energy and Mining, with a particular focus on Project Development and Mergers & Acquisitions. He has worked in several countries including Zambia, South Africa, India, Singapore and the USA with Shell Oil, Total Petrochemicals, Eskom, Tata Power and Oreport. As Group Head of Tata Power, Prince evaluated over 100 coal assets and over 50 power opportunities in 30 countries. He also served on the Board of Directors at Cennergi and the Tsitsikamma and Amakhala Wind Projects. He has led the development of numerous infrastructure projects in sub-Saharan Africa and facilitated transactions worth approximately US$1.5 billion in Zambia and South Africa.
-- Ms Chika Edeh has been appointed as Head of Investor Relations. Prior to joining Bushveld Minerals, Chika spent six years at BHP Billiton in London and Melbourne, working in Corporate Finance, Tax and Investor Relations. Prior to BHP Billiton, Chika worked for Barclays within the Private Banking division. Chika holds a Master's in Finance and Investments from Cass Business School, a Master's in Chemical Process Engineering and a Bachelor's in Chemistry from University College London.
Events Post 31 August 2017
Corporate
-- On 25 September 2017, Bushveld announced that it had raised GBP8.0 million of unsecured convertible bonds from UK-based funds, Atlas Capital Market and Atlas Special Opportunities. The first tranche of GBP4.5 million was issued on 22 September 2017.
Bushveld Resources Limited
-- On 20 November 2017, Bushveld released an operational update on Bushveld Vametco Alloys performance in the September 2017 quarter. Vametco had a solid quarter producing 669 mtV. In addition, during the period, revenue increased by 29% and EBITDA by 69%, compared to the June 2017 quarter, supported by a rising vanadium price. The first phase of the Vametco multi-phased expansion project was achieved in the quarter, during which Vametco reached an annual production run rate of 3,035 mtV. The following two phases of expansion will increase capacity to 3,750 mtV per annum by June 2018 and to over 5,000 mtV per annum by the end of 2019.
-- On 21 November 2017, Bushveld announced that its 84%-owned subsidiary, Bushveld Energy, had confirmed its first VRFB deployment in South Africa. The system will be deployed with Eskom. This follows Eskom's identification of the need for potentially up to 2,000MW of additional, daily balanced energy storage within the existing grid. The project is co-developed by Bushveld Energy and the IDC and will allow Eskom to test the VRFB. The VRFB commissioning is expected in the first half of 2018.
Lemur Holdings
-- On 17 November 2017, Lemur Holdings, announced that it had concluded an open market Request for Proposal process in October 2017 for all studies and services required to complete the Bankable Feasibility Study for the Imaloto Power Project in Madagascar.
-- On 23 November 2017, Lemur Holdings through its Madagascan subsidiary Imaloto Power Project SARL, executed a binding Power Purchase Agreement with Madagascar state-owned utility, Jiro sy Rano Malagasy as part of the Imaloto Power Project in Madagascar. The power plant will be located at the mine-mouth of Lemur Holdings' coal deposit, which has approximately 136 million tonnes of coal. The addition of a power component will unlock the value of the coal asset, while at the same time securing reliable electricity off-take backed by a government entity.
Greenhills Resources Limited
-- On 2 October 2017, Bushveld announced plans to de-merge its tin platform, Greenhills Resources Limited, and list it separately on the AIM market of the London Stock Exchange - renaming the company AfriTin. Shareholders approved the de-merger on 20 October 2017. The results of de-merged operations have been presented separately in the income statement.
-- AfriTin was admitted to the AIM market of the London Stock Exchange on 9 November 2017 and raised GBP3.5 million through an equity placing with a further GBP1.0 million raised from the AfriTin Notes, bringing the total raised to GBP4.5 million. To demonstrate Bushveld's continuing support in the now independent tin platform, the Company has retained a 17.48% shareholding in AfriTin. A further 24.39% of the issued share capital of AfriTin Mining was distributed to Bushveld shareholders on the register as at the close of business on 8 November 2017.
As the fair value of the AfriTin assets, estimated based on the market capitalisation of AfriTin on admission to the AIM market of the London Stock Exchange, was less than the book value of the tin assets at 31 August 2017, the Company recognised an impairment of GBP7,658,273 for its tin assets. Management would like to note that the recognition of the impairment is purely from an accounting perspective. The Company is confident that AfriTin will become a leading African tin platform.
Outlook
We are on track and delivering on our long-standing strategy of developing each of the Company's platforms, with a view to building each on a path to independent existence with dedicated resources, with vanadium as the flagship platform of the Company. In addition, the development of our projects is based on four key pillars: (a) choosing commodities with a positive market outlook; (b) developing assets with a low cost curve positioning; (c) executing a clear realisable path to production and, thus, cash flows and (d) ensuring scalability.
Enquiries: info@bushveldminerals.com
Bushveld Minerals +27 (0) 11 268 6555 Fortune Mojapelo, Chief Executive Officer SP Angel Corporate Finance LLP +44 (0) 20 3470 0470 Nominated Adviser & Broker Ewan Leggat Blytheweigh Financial PR Tim Blythe / Nick Elwes +44 (0) 207 138 3204 Gabriella von Ille +27 (0) 711 121 907
ABOUT BUSHVELD MINERALS LIMITED
Bushveld Minerals is an AIM listed mineral project development company with a portfolio of vanadium and coal assets in Southern Africa and an investment in tin.
The Company's flagship vanadium platform includes the Mokopane Vanadium Project, the Brits Vanadium Project, and an interest in Bushveld Vametco Alloys (Pty) Ltd primary vanadium mining and processing company. The coal platform comprises the wholly-owned Imaloto Coal Project, which is being developed as one of Madagascar's leading independent power producers. The Company's tin interests are held through its shareholding in AIM listed AfriTin Mining Limited.
Bushveld's vision is to become one of the largest, low cost, integrated primary vanadium producers through owned 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 the steel industry, Bushveld Minerals believes there is strong potential for an imminent and significant global vanadium demand surge from the fast-growing energy storage market, particularly through the use and adoption of Vanadium Redox Flow Batteries.
The Company's approach to project development recognises that, whilst attractive project economics are imperative, they are insufficient to secure capital to bring them to account. A clear path to production within a visible timeframe, low capital expenditure requirements and scalability are important factors in ensuring a positive return on investment. 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 2017
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Premium
Six months Six months Year to
to to 28 February
31 August 31 August 2017 (audited)
2017 (unaudited) 2016 (unaudited) GBP
Note GBP GBP
Operating expenses
Administration expenses
Continuing operations (249,475) 48,307 (1,369,513)
Demerged operations
(tin) - 80,774 (180,574)
Operating (loss)/income (249,475) 129,081 (1,550,087)
Other income 22,834 11,890 31,445
Finance income 1,098 66 1,093
Finance costs - (173,800) (202,518)
Impairment of tin
assets (7,658,273) - -
Share of profit from
associate 1,190,566 - -
Loss before tax (6,693,250) (32,763) (1,720,067)
Income tax expense - - -
Total loss for the
period (6,693,250) (32,763) (1,720,067)
================= ================= ===============
Attributable to:
Owners of the Parent (6,693,250) (32,763) (1,705,920)
Non-controlling interests - - (14,147)
(6,693,250) (32,763) (1,720,067)
================= ================= ===============
Loss per ordinary
share
Basic and diluted
(loss) per share
(in pence) 5 (0.88) (0.01) (0.28)
================= ================= ===============
Unaudited Consolidated Statement of Comprehensive Income
For the six months ended 31 August 2017
Six months Six months Year to
to to 28 February
2017 (audited)
31 August 31 August GBP
2017 2016
(unaudited) (unaudited)
GBP GBP
Loss for the period (6,693,250) (32,763) (1,720,067)
Currency translation
differences (466,585) 77,539 2,887,415
Total comprehensive
loss for the period (7,159,835) 44,776 1,167,348
================= ============ ====================
Attributable to:
Owners of the Parent (7,159,835) 44,776 783,430
Non-controlling interests - - 383,918
Total comprehensive
loss for the period (7,159,835) 44,776 1,167,348
================= ============ ====================
unaudited Consolidated Statement of Financial Position
As at 31 August 2017
Six months to Six months to Year to
31 August 2017 31 August 2016 28 February
(unaudited) (unaudited) 2017 (audited)
Note GBP GBP GBP
Assets
Non-current assets
Intangible assets:
exploration and evaluation 6 53,845,135 57,661,954 60,201,729
Property, plant and
equipment 7 6,353 329,142 304,910
Investment in associated
company 4 2,929,488 - -
Total non-current
assets 56,780,976 57,991,096 60,506,639
--------------- --------------- ---------------
Current assets
Trade and other receivables 8 1,729,654 1,954,810 2,507,027
Cash and cash equivalents 73,351 117,462 131,155
--------------- --------------- ---------------
Total current assets 1,803,005 2,072,272 2,638,182
Total assets 58,583,981 60,063,368 63,144,821
--------------- --------------- ---------------
Equity and liabilities
Current liabilities
Trade and other payables
and borrowing 9 (1,652,834) (1,095,895) (1,415,107)
Total current liabilities (1,652,834) (1,095,895) (1,415,107)
--------------- --------------- ---------------
Net assets 56,931,147 58,967,473 61,729,714
=============== =============== ===============
Equity
Share capital 10 8,066,820 5,916,706 6,962,141
Share premium 10 62,094,101 60,770,208 60,923,922
Accumulated deficit (15,465,044) (7,353,076) (8,771,794)
Warrant reserve 594,127 422,386 594,127
Foreign exchange
translation reserve (478,192) (2,423,418) (11,607)
---------------
Equity attributable
to the owners of
the Company 54,811,812 57,332,806 59,696,789
Non-controlling interests 2,119,335 1,634,667 2,032,925
Total equity 56,931,147 58,967,473 61,729,714
=============== =============== ===============
unaudited Consolidated Statement of Changes in Equity
For the six months ended 31 August 2017
Foreign
exchange Non-
Share Share Accumulated Warrant translation controlling Total
capital premium deficit reserve reserve Total 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
Income for the
period 581,993 581,993 581,993
Other
comprehensive
income:
Currency
translation
differences (537,217) (537,217) (537,217)
----------------- ---------- ----------- ------------ ---------- ----------- ------------ ----------- ------------
Total
comprehensive
income for the
period 581,993 (537,217) 44,776 44,776
Transactions with
owners:
Issue of shares 1,053,333 842,667 1,896,000 1,896,000
Non-controlling
interest 285,154 285,154
Total equity at
31
August 2016 5,916,706 60,770,208 (6,738,320) 422,386 (3,038,174) 57,332,806 1,634,667 58,967,473
----------------- ---------- ----------- ------------ ---------- ----------- ------------ ----------- ------------
Total
comprehensive
loss for the
period (2,287,913) (2,287,913) (14,147) (2,302,060)
Currency
translation
differences 3,026,567 3,026,567 112,911 3,139,478
----------------- ---------- ----------- ------------ ---------- ----------- ------------ ----------- ------------
Total
comprehensive
loss for the
period
Transactions
with
owners (2,287,913) 3,026,567 738,654 98,764 837,418
Warrants in
period 426,180 426,180 426,180
Reserve transfer 254,439 (254,439)
Issue of shares 1,045,435 135,714 1,199,149 1,199,149
Non-controlling
interest 299,494 299,494
Total equity at
28
February 2017 6,962,141 60,923,922 (8,771,794) 594,127 (11,607) 59,696,789 2,032,925 61,729,714
----------------- ---------- ----------- ------------ ---------- ----------- ------------ ----------- ------------
unaudited Consolidated Statement of Changes in Equity
For the six months ended 31 August 2017
Attributable to owners
of the
parent company
Foreign
exchange Non-
Share Share Accumulated Warrant translation controlling Total
capital premium deficit reserve reserve Total interests equity
Total equity at
28
February 2017 6,962,141 60,923,922 (8,771,794) 594,127 (11,607) 59,696,789 2,032,925 61,729,714
Loss for the
period - (6,693,250)) (6,693,250) (6,693,250)
Currency
translation
differences (466,585) (466,585) (466,585)
---------------- --------- ---------- ------------ -------- ------------ ----------- ----------- -----------
Total
comprehensive
loss for the
period (6,693,250) (466,585) (7,159,835) (7,159,835)
Transactions
with
the owners
Issue of shares 1,104,679 1,170,179 2,274,858 2,274,858
Non-controlling
interest 86,410 86,410
---------------- --------- ---------- ------------ -------- ------------ ----------- ----------- -----------
Total equity at
31
August 2017 8,066,820 62,094,101 (15,465,044) 594,127 (478,192) 54,811,812 2,119,335 56,931,147
unaudited Consolidated Statement of Cash Flows
For the six months ended 31 August 2017
Six months Six months Year to
to to 28 February
2017
31 August 31 August (audited)
2017 2016
(unaudited) (unaudited)
GBP GBP GBP
Loss after taxation (6,693,250) (32,763) (1,720,067)
Adjustments for:
Depreciation property,
plant and equipment - - 9,892
Impairment of tin assets 7,658,273 - -
Impairment of property,
plant and equipment - 138,708
Finance income (1,098) (66) (1,093)
Finance expenses - 173,800 202,518
(Decrease)/Increase in
receivables: (777,373) 2,356,967 559,828
Increase/(Decrease) in
payables 237,727 (2,415,736) 854,476
Net cash from operating
activities 424,279 (82,202) 44,262
------------ ------------ ------------
Cash flows from investing
activities
Interest received net 1,098 66 1,093
Purchase of exploration
and evaluation assets (537,809) (1,275,460) (821,937)
Deposit paid to Evraz - (1,244,922) -
Purchase of property
plant and equipment - - (25,996)
Bushveld Vametco Limited (619,648) - -
Net cash used in investing
activities (1,156,359)- (2,520,316) (846,840)
------------ ------------ ------------
Cash flows from financing
activities
Finance costs - - (528,400)
Proceeds from issue of
shares and warrants 1,624,858 1,896,000 3,200,381
Net repayment of borrowings - - (2,675,000)
Proceeds from borrowings - - 140,000
Net cash generated from
financing activities 1,624,858 1,896,000 136,981
------------ ------------ ------------
Net increase/decrease
in cash and cash equivalents 892,778 (706,518) (665,597)
Cash and cash equivalents
at the beginning of the
period 131,155 478,619 478,619
Effect of foreign exchange
rates (950,082) 354,691 318,133
Cash and cash equivalents
at end of the period 73,351 117,462 131,155
============ ============ ============
unaudited NOTES
For the six months ended 31 August 2017
1. Corporate information
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.
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 next set of financial statements 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 28 February 2017 is based on the statutory accounts for the financial year ended 28 February 2017. 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.
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 GBP42.2 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.
Following the listing of the AfriTin assets on the AIM the directors consider it appropriate to impair the assets by GBP7,658,273 which equates those assets to the market value of the company at listing.
Going concern
In preparing the interim 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 mainly through equity financing. Since posting of the 2017 Annual Financial Statements on 30 August 2017 the Company has raised funding through the following means in order to support its going concern status.
The Company has entered into an agreement with an Investor to raise funding of up to GBP8,000,000 through the creation and issuance of convertible bonds as more fully described in Note 11.
Thus the directors continue to adopt the going concern basis in preparing the group's financial statements.
unaudited NOTES
For the six months ended 31 August 2017
4. Associates
Associates are all entities over which the group has significant influence but not control or joint control. This is generally the case where the group holds between 20% and 50% of the voting rights. Investments in associates are accounted for using the equity method of accounting, after initially being recognised at cost.
Under the equity method of accounting, the investments are initially recognised at cost and adjusted thereafter to recognise the group's share of the post-acquisition profits or losses of the investee in profit or loss and the group's share of movements in other comprehensive income of the investee in other comprehensive income. Dividends received or receivable from associates and joint ventures are recognised as a reduction in the carrying amount of the investment.
When the group's share of losses in an equity-accounted investment equals or exceeds its interest in the entity, including any other unsecured long-term receivables, the group does not recognise further losses, unless it has incurred obligations or made payments on behalf of the other entity.
Unrealised gains on transactions between the group and its associates and joint ventures are eliminated to the extent of the group's interest in these entities. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of equity accounted investees have been changed where necessary to ensure consistency with the policies adopted by the group.
The carrying amount of equity-accounted investments is tested for impairment in accordance with the policy described in the 2017 financial statements.
5. Loss per share
From 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
28 February
2017
to to (audited)
31 August 31 August
2017 2016
(unaudited) (unaudited)
GBP GBP GBP
Loss for the
period attributable
to the owners
of the company (6,693,250) (32,763) (1,705,920)
Weighted average
number of shares
in issue 761,087,222 503,520,451 601,801,830
Loss per share
(pence) (0.88) (0.01) (0.28)
------------- ------------- -------------
unaudited NOTES
For the six months ended 31 August 2017
6. Intangible assets
Exploration Exploration
activities activities
- Vanadium - Tin Total
/ Iron
Ore
GBP GBP GBP
--------------------- ------------ --------------------- ------------
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
---------------------- ------------ --------------------- ------------
Additions 1,050,732 1,050,732
Foreign Exchange
adjustment 958,303 530,740 1,489,043
As at 28 February
2017 41,933,596 18,268,133 60,201,729
---------------------- ------------ --------------------- ------------
Additions 446,560 91,270 537,830
Impairment of
tin assets - (7,658,273) (7,658,273)
Foreign exchange
adjustment (136,191) 900,040 763,849
---------------------- ------------ --------------------- ------------
As at 31 August
2017 42,243,965 11,601,170 53,845,135
---------------------- ------------ --------------------- ------------
unaudited NOTES
For the six months ended 31 August 2017
7. Property, plant and equipment
Mining Fixtures
Asset Motor Geological and
GBP vehicles equipment fittings Total
GBP GBP GBP GBP
Net Book Value
At 31 August 2016 217,379 - 102,321 9,462 329,142
------------------ ------- --------- ---------- --------- -------
At 28 February
2017 301,185 - 110 3,615 304,910
------------------ ------- --------- ---------- --------- -------
At 31 August 2017 - - - 6,353 6,353
------------------ ------- --------- ---------- --------- -------
unaudited NOTES
For the six months ended 31 August 2017
8. Trade and other receivables
Year
Six months Six months to 28
to to February
31 August 31 August 2017
2017 (unaudited) 2016 (unaudited) (audited)
GBP GBP GBP
Advances and
deposits 290,886 1,244,922 192,937
Amounts due
from associate - - 2,314,090
Other receivables 1,438,768 709,888 -
1,729,654 1,954,810 2,507,027
------------------ ------------------ -----------
9. Trade and other payables and borrowing
Six months Six months
to to Year to
31 August 31 August 28 February
2017 (unaudited) 2016 (unaudited) 2017 (audited)
GBP GBP GBP
Darwin Strategic - 519,800 -
Limited
Trade and other
payables 374,470 247,258 363,711
Accruals 847,330 328,127 922,629
Short term loans 431,034 - 128,767
------------------ ------------------
1,652,834 1,095,185 1,415,107
================== ================== ================
unaudited NOTES
For the six months ended 31 August 2017
10. Share capital and share premium
Number of Shares Issue Price Nominal Share Premium TOTAL SHARE
Issued per Share Value of CAPITAL
Shares AND PREMIUM
of 1 pence
each
GBP GBP GBP GBP GBP
Share Capital and Premium at 31 August 2016 591,670,772 5,916,706 60,770,208 66,686,914
Capital Raise August 2016 38,666,668 0.015 386,667 193,333 580,000
Capital Raise October 2016 53,571,430 0.014 535,714 214,286 750,000
Shares issued in respect of warrants
exercised in January
and February 2017 12,305,401 0.024 123,054 172,275 295,329
Share issue expenses (426,180) (426,180)
Share capital and premium at 28 February
2017 696,214,271 6,962,141 60,923,922 67,886,063
---------------- ----------- ----------- ------------- ------------
Shares issued in respect of warrants
exercised in March
2017 3,866,667 0.015 38,667 19,333 58,000
Shares issued in respect of warrants
exercised in March
2017 4,833,333 0.018 48,333 38,667 87,000
Shares issued in respect of warrants
exercised in March
2017 5,357,143 0.028 53,571 96,429 150,000
Shares issued in respect of warrants
exercised in the
period March to 2017 August 2017 55,410,724 0.024 554,107 775,750 1,329,857
Uis Transaction 41,000,000 0,016 410,000 240,000 650,000
---------------- ----------- ----------- ------------- ------------
Share capital and premium at 31 August 2017 806,682,138 8,066,820 62,094,101 70,160,921
---------------- ----------- ----------- ------------- ------------
Share capital and premium 31 August 2017
As at 28 February and 31 August 2017 the Company owned 670,000 treasure
shares with a nominal value of 1 pence.( 31 August, 2016:670,000)
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.
unaudited NOTES
For the six months ended 31 August 2017
11. Warrants
The warrants issued during the period are as follows:
Number of Weighted
Warrants average
exercise
price
GBP
--------------------------------------- ------------------------ ----------------
Outstanding at 1 March
2016 10,507,975 0.08
Granted during the year 83,643,144 0.02
Exercised during the year (12,305,401) 0.02
Outstanding at 28 February
2017 81,845,718 0.03
Granted during this period 15,000,000 0.03
Exercised to 31 August
2017 (72,975,842) 0.03
--------------------------------------- ------------------------ ----------------
Exercisable at 31 August
2017 23,869,876 0.03
--------------------------------------- ------------------------ ----------------
The warrants outstanding at 31 August 2017 have an exercise price of GBP0.03, with a weighted average remaining contractual life of 2 years.
The group has recognised and incurred charge of GBP426,180 during the year 28 February 2017 which has been deducted from share premium as the warrants were issued as consideration for professional fees in relation to the issue of shares. No charge has been recognised for the period to 31 August 2017 as the warrants reserve is considered to be adequate in relation to the unredeemed warrants.
Events after the reporting date
Convertible Bond
A total fundraising of up to GBP8.0 million through the creation and issuance of convertible bonds, with denomination of GBP25,000 each, which bear a coupon of 7.5 per cent per annum and have a maturity date of two years from the date of issuance (the "Maturity Date") (the "Convertible Bonds"). The Convertible Bonds are issued at 98 per cent of face value.
The Convertible Bonds will be issued in two tranches, the first tranche of GBP4,500,000 ("First Tranche") was issued on 22 September 2017, upon receipt of funds by the Company. The second tranche of GBP3,500,000 ("Second Tranche") is to be issued at the Company's discretion forty working days (which can be shortened by mutual agreement) after the date of issuance of the First Tranche, conditional upon receipt of funds by the Company and satisfaction of certain conditions precedent. It is the Company's current intention that it will issue the Second Tranche and a further announcement will be made at that time.
The convertible Bonds are convertible into BMN ordinary shares at a price equal to the average of five days volume weighted average price (as published by Bloomberg) determined over the ten trading days immediately prior to receipt of a conversion notice by the Company from the Investor.
The Investor has agreed not to convert more than 25 per cent of the Convertible bonds outstanding during every period of three calendar months (i) from 1 October to 31 December; (ii) from 1 January to 31 March; (iii) from 1 April to 30 June; and (iv) from 1 July to 30 September, subject to certain exception, and agrees not to short sell and/or borrow BMN ordinary shares at any point during the twenty-four month period from the date of issuance of the First Tranche.
A total of 6,250,000 warrants over BMN ordinary shares will be issued as part of the First Tranche and should the Company elect to issue the Second Tranche, a further 4,861,111 warrants will be issued. The warrants have a three year term, a strike price of 14.4p and are exercisable at any time.
unaudited NOTES
For the six months ended 31 August 2017
Events after the reporting date
Convertible Bond
The net proceeds receivable from the issue of the First Tranche will be applied to further developing the Company's vanadium and tin platforms, as well as providing general working capital. The net proceeds from the Second Tranche, assuming it is issued, will be applied in the same way.
The company has the option to redeem the Convertible Bonds prior to the Maturity Date at 105 per cent of the face value of the outstanding Convertible Bonds to be redeemed. If a material change of ownership (being the acquisition of ownership of, or voting control or direction over, more than 50% of the issued and outstanding shares of the Company) occurs, or certain events of default occur, the Investor has the right to request redemption of all or part of the outstanding amount at 105 per cent of the face value of the outstanding Convertible Bonds to be redeemed.
On the Maturity Date, any unconverted Convertible Bonds will be converted into BMN ordinary shares, with such number of ordinary shares determined by dividing the principal amount of the unconverted Convertible Bonds by the average of the lowest three days volume weighted average price (as published by Bloomberg) during the period of fifteen consecutive trading days prior to the Maturity Date.
De-merger of Tin assets
On 2 October 2017 the Board announced the intention to effect a demerger of its wholly owned subsidiary, Greenhills Resources, and its subsidiaries. The demerger was approved by way of a general shareholders meeting on 20 October 2017 to form the new company to be listed on London Stock Exchange's AIM under the name AfriTin Mining Limited (AIM;ATM) ("AfriTin"). On admission, a placing and subscription for existing and new institutional and sophisticated private investors raised gross proceeds of GBP3.5 million with a further GBP1m raised from convertible loan notes that convert on admission, bringing the total amount raised to GBP4.5 million. The newly formed AfriTin company which is acquiring the tin assets of Bushveld Minerals in Namibia and South Africa has 297,464,888 shares of nil par value in issue.
AfriTin was formed in 2017, to acquire Greenhills Resources Limited, a wholly owned subsidiary of Bushveld, and AIM quoted diversified mineral development company. On completion, AfriTin's key assets included an 85% interest in the Uis Tin Project in Namibia ("Uis"), a brownfield near term production opportunity, which was once the largest open cast tin mine of its kind in the world. AfriTin also holds a portfolio of tin assets in South Africa which include the Mokopane tin project and the Zaaiplaats Tin Tailings project.
As the fair value of AfriTin assets following admission to AIM were GBP11,601,130, an impairment of GBP7,658,273 has been recognised in the interim financial statements.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR MMMZMNRLGNZM
(END) Dow Jones Newswires
November 29, 2017 02:00 ET (07:00 GMT)
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