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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Kennedy Venture | LSE:KENV | London | Ordinary Share | GB00B830HW33 | ORD 1P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 4.625 | 4.50 | 4.75 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
From Apr 2019 to Apr 2024
TIDMKENV
RNS Number : 0240B
Kennedy Ventures PLC
30 March 2017
30 March 2017
Kennedy Ventures plc
Kennedy Ventures plc
Interim Results for the six months ended 31 December 2016
Kennedy Ventures plc ("Kennedy Ventures" or "the Company"), the AIM quoted investing company which is focussed on tantalite production through its stake in African Tantalum (Pty) Limited ("Aftan"), which owns and manages the Tantalite Valley Mine ("TVM") in Namibia, is pleased to announce its unaudited interim results for the six months ended 31 December 2016 ("the Period").
Highlights:
Operational
Hot Features
Premium
-- Successfully raised GBP2.0 million through a placing
with the proceeds invested in Aftan to allow it to
upgrade and expand the plant at the TVM and open
up the Lepidolite Orebody
-- Aftan's TVM plant upgrade programme was initiated.
The programme is designed to improve the overall
performance of the mine, generating improved utilisation
rates, improved recovery rates and higher throughput
levels, ensuring long-term value creation. The programme
involves:
o Improving overall tantalite recovery rates through
the installation of a new fine recovery plant, allowing
for the re-processing of all tailings
o Increasing both the target throughput to 15,000
tonnes per month and production to 15 tonnes of tantalite
concentrate per month, with improved ore sourcing
and grades
o Installation of a milling circuit to liberate fine
grains
-- During the Period, Aftan reported improved mining
face availability and flexibility in ore sourcing
as a direct result of more consistent blasting and
the generation of new adits in line with the mine
plan under the new explosive programme
-- Ongoing work within Tantalite Valley on the lithium
potential
Financial
-- At 31 December 2016, cash at bank amounted to GBP315,000
and, in addition with the investment in TVM, property
plant & equipment and other intangible assets amounted
in aggregate to GBP2,188,000
-- Net Current Assets at 31 December 2016 amounted to
GBP338,000 which is an improvement on the net current
liability position at 30 June 2016 of GBP306,000
-- Overall Net Assets at 31 December 2016 amounted to
GBP3,168,000, up from the 30 June 2016 balance of
GBP1,405,000
Post Period
-- Appointment of Larry Johnson as CEO
-- Raised GBP1.25 million in January 2017 through a
placing, with the proceeds invested in Aftan to allow
it to implement essential plant enhancements that
were identified as necessary after the Period-end.
Aftan expects that enhancements will deliver improved
utilisation rates, recoveries and production levels
that involve:
o improving water retention through the new plant
by upgrading pumping systems, water storage facilities
and installing a thickener; and
o the installation of the milling circuit to follow
the water system.
Aftan has advised that the proceeds will also be
applied to:
o accelerate ongoing lithium studies; and
o facilitate the on-going negotiations with major
purchasers of tantalum
-- Aftan has advised that mining has continued during
the upgrade, with stockpiles increasing in line with
increased volumes of ore moved
-- Positive onsite visit by one of the largest tantalum
consumers in the world, in line with Aftan's objective
to secure improved offtake terms
-- Aftan's lithium programme continues, with the Lepidolite
sampling programme nearing completion and a maiden
JORC compliant mineral resource estimate expected
in Q2 this calendar year
-- Positive review of Aftan's procurement functions,
stock control and general management of TVM to deliver
maximum mine productivity and profitability as the
mine approaches higher output levels
-- Resignation of Caroline McLeod in March 2017 as a
Non-executive Director of the Company
-- Successful visit to TVM by a leading manufacturer
of tantalum capacitors
-- One metric tonne of product sold by Aftan with a
further six metric tonnes requested for delivery
as part of a potential offtake sample programme
-- A meeting between Aftan and local unions was successful,
with full approval for an extended shift granted
-- Full commercial production at TVM expected by the
end of Q2 2017
Outlook for Aftan's operations
-- The pumping system and upgrade of the water management
system took place in March and the new milling circuit
installation is expected to be completed in May 2017.
The fines recovery circuit is being completed and
once completed will be coupled to the existing circuit.
-- Aftan expects a throughput rate at TVM of 15,000
tonnes per month by the end of Q2 2017 which is expected
to be followed by positive cash generation by the
calendar year end.
Larry Johnson, CEO of Kennedy Ventures said:
"I am pleased to announce that Aftan and Kennedy are now poised to take advantage of the initiatives launched during the Period. When Kennedy invested in Aftan, it was known that the TVM plant required an upgrade in order for it to extract maximum value from the mine. The subsequent timing of the upgrade has proven to be to our advantage as support and demand begins to flow back into global commodities.
Post Period-end we assisted Aftan to identify further, necessary enhancements for the plant and Aftan is busy implementing these. In anticipation of the higher levels of production and in recognition of the enhanced processing, TVM has now opened itself up to the global market and Aftan is in advanced discussions geared towards securing new and positive offtake terms for its product.
The Board continues to look at other investment opportunities and we hope to provide further details on these in due course."
For further information on the Company, visit: www.kvplc.com:
Kennedy Ventures plc Larry Johnson (CEO), c/o Tel: +44 (0)203 757 Camarco 4983 Grant Thornton UK LLP (Nominated Tel: +44 (0)20 7383 Adviser) 5100 Colin Aaronson Richard Tonthat Daniel Bush Shore Capital (Joint Broker) Tel: +44 (0) 207 408 Mark Percy / Toby Gibbs (corporate 4090 finance) Jerry Keen (corporate broking) Camarco (PR) Tel: +44 (0) 203 757 Billy Clegg / Gordon Poole 4980 James Crothers
The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.
Notes to Editors:
Tantalite concentrates form the vast majority of feedstock for all tantalum products. As such they are critical parts of a wide range of modern electronics including computers, tablets, mobile phones, motor components and video game systems.
Aside from electronics, tantalum has significant usage in super alloys, specialised steels, corrosion resistant equipment and medicine.
Tantalum's applications are based on its unique physico - chemical properties. The oxides and metal have extremely high melting points, high heat conductivity and strong resistance to corrosive environments. Combined, these factors have entrenched its international demand and made it an important component of numerous research projects and new technologies.
Trade pricing is following tantalum markets as per Asian Metals and Metal Pages.
In August 2012, the US Securities and Exchange Commission adopted a rule mandated by the Dodd-Frank Wall Street Reform and Consumer Protection Act to require companies reporting to the SEC to publicly disclose the origins of the tantalum they buy in order to restrict the use of conflict minerals that originated in the Democratic Republic of the Congo or an adjoining country. As a result, users of tantalum are encouraged to demonstrate that their supply chain is transparent to ensure that conflict-free tantalum is procured.
It is intended that the tantalum produced by Aftan will be conflict-free.
CHAIRMAN'S STATEMENT
Kennedy continues to work closely with Aftan to fully understand the full potential at TVM. With the appointment of Larry Johnson after the Period-end in January 2017, Kennedy is now well placed to take advantage of an improving commodity environment. Following the completion of the plant upgrade and associated enhancements, we expect Aftan to become a high margin tantalum producer.
Review of the Period
When Kennedy Ventures acquired 75% of Aftan in January 2015, there was a clear strategy around TVM to upgrade the plant. This upgrade was essential for Aftan to extract the maximum value from the mine and its surrounding licences, and ensuring that higher levels of throughput and recovery were achieved. During the first half of this financial year, we have made important strides towards supporting Aftan to complete these upgrades, firstly by raising the required funds (GBP2.0 million) to invest in the plant upgrade.
Later in the Period, Aftan initiated and completed the reorganisation of the existing modules, the installation of a pre concentration plant to reduce table loads and specialist tables for the recovery of fine tantalite. As the improvements were implemented and production was ramping up, it became clear post Period-end that the management and storage of water within the new plant was a constraining issue and a thickener was required to improve water retention. Consequently, the scheduled installation of the milling circuit to liberate fine tantalite is delayed until after the upgraded water pumping systems, water storage facilities and new thickener arrive on site and are installed, which is expected by first week of April.
During the Period, the Company was very pleased to receive notification from Aftan that the mine performance was improving with improved mining face availability and flexibility in ore sourcing. This was as a direct result of more consistent blasting and the generation of new adits in line with the mine plan under the new explosive programme.
The first half of the financial year saw Aftan begin its lithium programme, designed to evaluate the lithium potential at TVM and within the Lepidolite Ore Body where studies identified lithium bearing mineralisation. Initial sampling took place during the Period and proceeded well, with the sampling programme nearing completion post Period. The test work programme is underway and is proceeding as planned at SGS's laboratory in Johannesburg, with first results received and an initial plant design being scoped. Aftan expects to produce a maiden JORC compliant mineral resource estimate in Q2 this year.
Post Period end, the Company appointed Larry Johnson as CEO and successfully raised GBP1.25 million to invest in Aftan to allow it to carry out the enhancements relating to the water management system. Larry is uniquely qualified having spent 35 years in the tantalum industry with two large US based publicly listed companies with core interests in tantalum. Larry's knowledge of the global tantalum market has enabled the Company to consider its future investment strategy as it grows, facilitating further investments in the sector.
Additionally, Larry has been working closely with Aftan, reviewing processes and providing Aftan with guidance around further plant processing optimisation, as well as reviewing existing commercial contracts to ensure Aftan receives optimal revenues from the TVM. This review will seek further efficiencies at the mine to ensure stockpile levels are maintained and old stockpiles are incorporated into the mine plan, potentially creating an additional economic source of tonnage.
In mid-February, the leading manufacturer of tantalum capacitors (the "Customer") visited TVM to assess the progress that Aftan has made. Following the meeting, the Customer purchased one metric tonne of end product for testing. The customer has now followed this initial purchase with a request for 6 metric tonnes for the quarter to June 2017 as part of a quality sampling programme to make certain the product suits their facilities and requirements. Subject to the product meeting the Customer's required specifications, Aftan hopes to agree a permanent offtake agreement with the Customer. Furthermore, the Customer has introduced Aftan to the leading global tantalum powder smelter from Germany. The Customer has indicated that it will assist Aftan with developing this relationship.
Upon completion of Aftan's upgrade work, production rates should be significantly higher than 18 months ago and the plant capacity and efficiency are expected to be markedly improved. This will ensure Aftan is in a position of strength to deliver high quality tantalum into a growing demand market, generating high cash margins.
Demand for tantalum is driven by the electronics and technology industries, where tantalum capacitors are used in nearly all electronic equipment and mobile devices. Furthermore, tantalum is used to produce super alloys that can be used to manufacture high temperature cutting tools. Tantalum is a conflict mineral and the Company remains committed to ensuring that the tantalum produced by Aftan will be conflict-free.
Furthermore, the Company is currently exploring new revenue generation streams and investment opportunities which could include investing in new purchasing and supply chains for tantalite and other speciality minerals in Africa and globally.
Financials
The Company recorded a loss before tax of GBP418,000 (2015: GBP368,000) and had cash balances of GBP315,000 (2015: GBP233,000) at the end of the Period. The Company does not plan to pay an interim dividend for the six months ended 31 December 2016.
Outlook
The TVM upgrade, as well as enhancements to the water management system, have been essential to ensure that Aftan can extract optimal value from TVM. Aftan is now strategically placed to increase levels of high grade product and to negotiate improved offtake terms. Additionally, its lithium programme continues at pace and Aftan expects to be able to announce a maiden mineral resource estimate by the end of Q2 this year. The arrival of Larry Johnson as CEO has further enhanced Kennedy's ability to explore new investments and acquisition opportunities, supply chain extensions and trade opportunities.
With the plant upgrade capex now sunk at TVM, Kennedy, through the investment in Aftan, hopes to be able to take advantage of the high margin cash generation anticipated this calendar year.
Giles Clarke
Chairman
30 March 2017
UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHSED 31 DECEMBER 2016
Unaudited Unaudited Audited
Six months Six months year
ended ended ended
31 December 31 December 30 June
2016 2015 2016
Notes GBP'000 GBP'000 GBP'000
------------------------------- ------ ------------ ------------ --------
Administrative expenses (418) (368) (788)
Operating loss and loss
before tax (418) (368) (788)
Tax on profit on ordinary
activities - - -
Loss for the period (418) (368) (788)
------------------------------- ------ ------------ ------------ --------
Loss attributable to
owners of the Company (421) (368) (676)
Profit / (loss) attributable
to non-controlling interests 3 - (112)
(418) (368) (788)
------------------------------- ------ ------------ ------------ --------
Loss per share
Basic (loss) per share (0.26)p (0.36)p (0.6)p
Fully diluted (loss)
per share 3 (0.26)p (0.36)p (0.6)p
------------------------------- ------ ------------ ------------ --------
Loss for the year (421) (368) (676)
Exchange differences on translation
of foreign operations 358 31 21
Total comprehensive loss
for the year attributable
to equity holders of the
parent (63) (337) (655)
------------------------------------- ------ ------ ------
UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2016
Unaudited Unaudited Audited
As at As at As at
31 December 31 December 30 June
2016 2015 2016
GBP'000 GBP'000 GBP'000
------------------------------- ------------ ------------ ---------
Non-current assets
Goodwill 642 571 571
Other intangible assets 1,377 444 674
Property, plant & equipment 811 762 466
Total non-current assets 2,830 1,777 1,711
------------------------------- ------------ ------------ ---------
Current assets
Trade and other receivables 165 31 70
Cash and cash equivalents 315 233 60
Total current assets 480 264 130
------------------------------- ------------ ------------ ---------
Current liabilities
Trade and other payables (142) (37) (286)
Short term borrowings - - (150)
Total current liabilities (142) (37) (436)
------------------------------- ------------ ------------ ---------
Net assets 3,168 2,004 1,405
------------------------------- ------------ ------------ ---------
Capital and reserves
Called up share capital 1,751 1,052 1,084
Share premium account 10,281 9,004 9,125
Share based payment reserve - 251 -
Capital redemption reserve 2,077 2,077 2,077
Currency translation reserve 23 27 17
Profit and loss account (10,842) (10,550) (10,773)
------------------------------- ------------ ------------ ---------
Equity attributable to owners
of the Company 3,290 1,861 1,530
Non-controlling interests (122) 143 (125)
------------------------------- ------------ ------------ --------- Shareholder funds 3,168 2,004 1,405 ------------------------------- ------------ ------------ ---------
UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 31 DECEMBER 2016
Unaudited Unaudited Audited
Six months Six months year
ended ended ended
31 December 31 December 30 June
2016 2015 2016
GBP'000 GBP'000 GBP'000
-------------------------------- ------------ ------------ --------
Balance at beginning of period 1,405 646 646
Loss for the financial period (66) (368) (788)
Issue of share capital 1,823 1,444 1,597
Share based payment expense - 251 85
Acquisition of subsidiary
undertakings - - (156)
Foreign exchange reserve
movement 6 31 21
Balance at end of period 3,168 2,004 1,405
-------------------------------- ------------ ------------ --------
UNAUDITED CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2016
Unaudited Unaudited Audited
Six months Six months year
ended ended ended
31 December 31 December 30 June
2016 2015 2016
GBP'000 GBP'000 GBP'000
----------------------------- ------------ ------------ --------
Cash flows from operating
activities
Operating loss (66) (368) (788)
Adjustments for:
Depreciation 11 - 17
Share based payment charge
for year - 251 197
Shares issued in settlement
of fees - - 20
------------------------------ ------------ ------------ --------
Operating cashflow before
working capital changes (55) (117) (554)
(Increase) in receivables (95) (18) (57)
(Decrease) / increase
in payables (144) (61) 188
------------------------------ ------------ ------------ --------
Net cash outflow from
operating activities (294) (196) (423)
------------------------------ ------------ ------------ --------
Investing activities
Purchase of property,
plant & equipment (356) (367) (88)
Development costs (703) (265) (664)
Acquisition of subsidiary
undertakings - (181) (336)
Net cash outflow from
investing activities (1,059) (813) (1,088)
------------------------------ ------------ ------------ --------
Financing activities
Net proceeds from share
issues 1,823 1,358 1,365
Repayment of loan (245) (142) -
Loans from associates 95 - 108
------------------------------ ------------ ------------ --------
Net cash inflow from
financing activities 1,673 1,216 1,473
------------------------------ ------------ ------------ --------
Net increase/(decrease)
in cash in the period 320 207 (38)
Exchange rate translation
adjustment (65) - 72
Cash and cash equivalents
at beginning of period 60 26 26
------------------------------ ------------ ------------ --------
Cash and cash equivalents
at end of period 315 233 60
------------------------------ ------------ ------------ --------
NOTES TO THE UNAUDITED INTERIM ACCOUNTS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2016
1. Basis of preparation
The financial statements included in the interim accounts have been prepared under the historical cost convention and in accordance with International Financial Reporting Standards (IFRS). The comparative figures for the six months ended 31 December 2015 are also included in these interim accounts under the historical cost convention.
The principal accounting policies used in preparing these interim accounts are those expected to apply in the Company's Financial Statements for the year ending 30 June 2017 and are unchanged from those disclosed in the Company's Annual Report for the year ended 30 June 2016.
The interim accounts were approved by the Board of Kennedy on 30 March 2017. The interim financial information for the six months ended 31 December 2016 does not constitute statutory accounts within the meaning of section 434 of the Companies Act 2006 and is unaudited. The comparatives for the year ended 30 June 2016 are not the Company's full statutory accounts for that period. A copy of the statutory accounts for that year has been delivered to the Registrar of Companies. The auditors' report on those accounts was unqualified, and did not contain statements under sections 498(2) or (3) of the Companies Act 2006. Copies of the accounts for the year ended 30 June 2016 are available on the Company's website (www.kvplc.com).
2. Accounting policies
The principal accounting policies are:
Basis of preparation
The comparative figures for the six months ended 31 December 2015 have been presented on the same basis as the interim accounts for the six months ended 31 December 2016.
Going concern
The interim financial statements have been prepared on the going concern basis as, in the opinion of the Directors, at the time of approving the interim financial statements, there is a reasonable expectation that the Company will continue in operational existence for the foreseeable future. The interim financial statements do not include any adjustments that would result from the going concern basis of preparation being inappropriate.
3. Loss per share
Unaudited Unaudited Audited
6 months 6 months
ended ended Year ended
31 December 31 December 30 June
2016 2015 2016
GBP'000 GBP'000 GBP'000
-------------------------------- ------------ ------------ ------------
Loss used for calculation
of basic and diluted EPS (421) (368) (676)
Loss for the year attributable
to owners of the Company (421) (368) (676)
-------------------------------- ------------ ------------ ------------
Weighted average number
of ordinary shares in issue
used for calculation of
basic and diluted EPS* 161,979,587 102,889,458 104,756,967
Loss per share (pence per
share)
Basic and fully diluted*:
-from continuing and total
operations (0.26) (0.36) (0.6)
-------------------------------- ------------ ------------ ------------
*The Company has outstanding warrants and options which may be dilutive in future periods. The effect in respect of the current year would have been anti-dilutive (i.e. reducing the loss per share) and accordingly is not presented.
4. Distribution of Interim Report and Registered Office
A copy of the Interim Report will be available shortly on the Company's website, www.kvplc.com, in accordance with rule 26 of the AIM Rules for Companies; and copies will be available from the Company's registered office, Lakeside Fountain Lane, St.Mellons, Cardiff, CF3 0FB.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR WGUACWUPMUBU
(END) Dow Jones Newswires
March 30, 2017 05:48 ET (09:48 GMT)
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