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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Metminco | LSE:MNC | London | Ordinary Share | AU000000MNC7 | ORD NPV |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 0.325 | 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
TIDMMNC
RNS Number : 2832B
Metminco Limited
03 April 2017
ANNUAL FINANCIAL REPORT FOR THE YEARED 31 DECEMBER 2016
Metminco Limited (ASX: MNC; AIM: MNC) is pleased to announce that it has today released its Financial Report for the year ended 31 December 2016.
A summary of the Financial Report is set out below. The full report can be accessed from the below link:
http://www.rns-pdf.londonstockexchange.com/rns/2832B_-2017-4-3.pdf
FINANCIAL SUMMARY
Overview
During 2016 Metminco Limited ("Metminco" or the "Company") achieved two major milestones in relation to its strategy to become a gold producer in the near term whilst maintaining a longer term interest in gold and copper within South America, in particular Colombia, Peru and Chile.
The Company acquired the Quinchia Gold Portfolio and then completed a Scoping Study demonstrating the robust economics for the potential development of the Miraflores Project (part of the Quichia Gold Portfolio) into a gold producing asset. The Quinchia Gold Portfolio, which is located in Colombia's Middle Cauca Belt, and has a NI 43-101 estimated Mineral Resource of 2.8 million ounces of gold and contains a number of gold deposits and significant exploration and development targets including Miraflores, Tesorito, Chuscal and Dosquebradas.
In Peru the Company secured funding of up to US$45 million to advance the Los Calatos Project toward completion of a bankable feasibility study. The development prospects of the Los Calatos copper molybdenum project, located in Southern Peru near three large operating copper-molybdenum mines, namely Cuajone, Toquepala and Cerro Verde, have been significantly enhanced by the agreement with CD Capital Natural Resources Fund III LP (CD Capital) to fund the completion of the Pre-feasibility and Feasibility Studies.
As a result of achieving of these milestones the Company reported a Consolidated Group after tax loss for the year ended 31 December 2016. The loss of A$124,100,870 (2015: loss of $49,070,767), included a loss of A$121,540,173 on the loss of control of the Group's investment in Los Calatos Holding Limited (LCH) as determined by reference to the see-through value of the CD Capital Transaction (refer below) in accordance with applicable accounting standards.
As well the Company incurred expenditure in relation to transitioning the Company towards being a gold producer in the near term whilst retaining a significant interest in copper through its Los Calatos Project and its wholly owned Chilean assets. Care and maintenance and legal costs at the Company's Chilean projects, Mollacas, Vallecillo and Loica and discontinued licences in Colombia were written off (A$407,300). As well the Company incurred normal overhead costs associated with corporate governance, compliance, and maintenance of ASX and AIM listings.
Strategy
Metminco's growth strategy is to become a gold producer in the near term whilst maintaining a longer term interest in gold and copper within South America, in particular Colombia, Peru and Chile. To this effect, the Company purchased the Quinchia Gold Portfolio in Colombia in June 2016 which includes the Miraflores, Dosquebradas, Tesorito and Chuscal projects.
The Company seeks to deliver growth in long term shareholder value by progressing the following objectives:
-- Advance the feasibility study on the Miraflores Project with an expected completion date for the feasibility study The Miraflores Project is expected to produce 50,000 oz Au per annum over a life of mine of 9 years. Current estimate for commencement of construction is during the second quarter of 2018.
-- Enhance anticipated future gold production from the Miraflores Project through exploration and development of high potential prospects in the Quinchia Gold Portfolio.
-- With CD Capital, advance the Los Calatos Project through pre-feasibility and feasibility studies realising significant value for shareholders in this world class asset and taking advantage of strong copper fundamentals.
Metminco retains a 100% interest in a portfolio of gold, copper and other base metal projects that are located within well-constrained metallogenic belts associated with the Andean Cordillera in Chile which have the potential to contribute significantly to shareholder value in the future.
Acquisition of Miraflores Compania
The Company completed the acquisition of Miraflores Compania from RMB Australia Pty Ltd (RMB) late June 2016 by the issue of 350 million Shares (at a deemed price of A$0.5 cents per Share) and reimbursement of approximately A$165,000 in Miraflores Compania's operating costs from date of signing the binding term sheet to 30 April 2016. Miraflores Compania is the owner of the Quinchia Gold Portfolio more fully described above.
As a result of the issue of the 350,000,000 Shares, RMB became a substantial shareholder of Metminco, holding 400,000,000 Shares.
Under the purchase agreement, Metminco will make cash payments to RMB as follows:
(i) Payment of A$1.3 million (A$1 million initial payment plus A$0.3 million in reimbursement of operating expenditure prior to completion) on 20 June 2017;
(ii) Second payment of A$1.0 million on 20 June 2018;
(iii) Third payment of A$3.0 million on the earlier of a decision to mine at the Quinchia Gold Portfolio; or on 20 June 2019;
(iv) Fourth payment of A$2.0 million on the earlier of a decision to mine at the Quinchia Gold Portfolio; or 20 June 2020; and
(v) A maximum of A$7 million in royalty payments to RMB from operating cashflows.
The timing of consideration for the acquisition, which is in total approximately A$16.5 million with minimal payable upfront, is structured to allow Metminco to focus on the development of the Miraflores Project and the drilling of the Tesorito target.
CD Capital Transaction
The Company entered into a subscription agreement with CD Capital whereby CD Capital committed an equity investment of up to US$45 million in relation to the Los Calatos Project. The equity contribution will be applied in 3 tranches over the next 3 - 4 years to complete the planned Pre-feasibility and Feasibility Studies on the Los Calatos Project.
In late October 2016 CD Capital subscribed for US$16 million worth of new shares in Los Calatos Holding Ltd (LCH) equivalent to 51% of the company (Tranche 1). Under the subscription agreement CD Capital will have the option to subscribe for additional shares in LCH over two additional Tranches of US$14.5 million each, which, subject to being exercised in full would increase CD Capital ownership of LCH to 65% after Tranche 2 and 70% after Tranche 3.
Cash Position and Funding
During the year ended 31 December 2016, Metminco's cash position decreased from approximately A$0.9 million to A$0.1 million, excluding the Company's share of LCH cash reserves (A$9.6 million) due to expenditure being greater than capital raisings of approximately A$2.8 million after costs.
Expenditure for the year was focused on completion of the Scoping Study and preparatory work for the planned Miraflores Feasibility Study including an updated JORC 2012 Mineral Resource estimate, analysis of development options, a gap analysis on the requirements to complete a Feasibility Study and the preparation of a preliminary mine plan and schedule.
Share Consolidation
Following the completion of the security consolidation on 4 January 2017 the Company had on issue 90,280,468 fully paid Shares and 100,000 unlisted options to acquire one share at A$1.51 per Share on or before 1 August 2017.
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEARED 31 DECEMBER 2016
Hot Features
Premium
CONsolidated Group
31 December 31 December
2016 2015
$ $
Revenue 389 4,445
Finance costs on deferred
consideration (221,057) -
Foreign exchange gain/(loss) 16,369 (74,202)
Administration expenses (660,563) (1,152,533)
Corporate expenses (975,800) (655,191)
Occupancy expense (199,537) (260,984)
Exploration and evaluation
expenditure impaired (407,300) (43,480,520)
Loss of control of subsidiary (121,540,173) -
Exploration, evaluation
and due diligence expenses - (626,568)
Provision for Chilean VAT
receivable - (2,825,214)
Share of net loss of associate (113,198) -
Loss before income tax (124,100,870) (49,070,767)
Income tax expense - -
------------- -------------
Loss for the year (124,100,870) (49,070,767)
------------- -------------
Other comprehensive income
Items that may be reclassified
subsequently to profit
or loss:
Exchange differences on
translating foreign controlled
entities (net of tax) 423,051 8,617,997
Total Comprehensive Loss
for the year (123,677,819) (40,452,770)
------------- -------------
Loss for the year attributable
to members of the parent
entity: (124,100,870) (49,070,767)
------------- -------------
Total comprehensive loss
attributable to members
of the parent entity
from continuing operations: (123,677,819) (40,452,770)
------------- -------------
Basic loss per share(cents) (169.38) (101.75)
Diluted loss per share (169.38) (101.75)
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2016
CONsolidated Group
31 December 31 December
2016 2015
$ $
ASSETS
CURRENT ASSETS
Cash and cash equivalents 71,548 949,790
Trade and other receivables 385,827 186,858
Other assets 21,060 21,815
------------- -------------
TOTAL CURRENT ASSETS 478,435 1,158,463
------------- -------------
NON-CURRENT ASSETS
Trade and other receivables - 2,180,893
Investment in associate 33,766,877 -
Property, plant and equipment 4,538,349 4,586,160
Exploration and evaluation
expenditure 9,486,691 160,886,215
------------- -------------
TOTAL NON-CURRENT ASSETS 47,791,917 167,653,268
------------- -------------
TOTAL ASSETS 48,270,352 168,811,731
------------- -------------
LIABILITIES
CURRENT LIABILITIES
Trade and other payables 3,425,242 317,058
Short term provisions 236,775 258,225
------------- -------------
TOTAL CURRENT LIABILITIES 3,662,017 575,283
------------- -------------
NON-CURRENT LIABILITIES
Long term provisions 79,903 83,155
Long term payables 4,893,628 -
TOTAL NON-CURRENT LIABILITIES 4,973,531 83,155
------------- -------------
TOTAL LIABILITIES 8,635,548 658,438
------------- -------------
NET ASSETS 39,634,804 168,153,293
------------- -------------
EQUITY
Issued capital 329,032,074 324,037,464
Reserves (30,142,687) (18,208,268)
Accumulated losses (259,254,583) (137,675,903)
------------- -------------
TOTAL EQUITY 39,634,804 168,153,293
------------- -------------
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2016
Foreign Acquisition
Currency Reserve
Issued Accumulated Option Translation
Capital Losses Reserve Reserve Total
CONSOLIDATED $ $ $ $ $ $
GROUP
Total equity
as at 1 Jan
2015 318,677,036 (88,790,974) 253,594 14,612,641 (41,506,662) 203,245,635
Loss attributable
to members
of the parent
entity - (49,070,767) - - - (49,070,767)
Other comprehensive
income - - - 8,617,997 - 8,617,997
----------- ------------- --------- ------------ ------------ -------------
Total comprehensive
loss - (49,070,767) - 8,617,997 - (40,452,770)
Transactions
with owners:
Shares issued
during the
period 5,625,590 - - - - 5,625,590
Transaction
costs (265,162) - - - - (265,162)
Options expired - 185,838 (185,838) - - -
Balance as
at 31 December
2015 324,037,464 (137,675,903) 67,756 23,230,638 (41,506,662) 168,153,293
----------- ------------- --------- ------------ ------------ -------------
Total equity
as at 1 Jan
2016 324,037,464 (137,675,903) 67,756 23,230,638 (41,506,662) 168,153,293
Loss attributable
to members
of the parent
entity - (124,100,870) - - - (124,100,870)
Other comprehensive
income - - - 423,051 - 423,051
----------- ------------- --------- ------------ ------------ -------------
Total comprehensive
loss - (124,100,870) - 423,051 - (123,677,819)
Transactions
with owners:
Shares issued
during the
period 5,415,242 - - - - 5,415,242
Transaction
costs (420,632) - - - - (420,632)
Loss of control
of subsidiary - 2,509,120 - (12,344,400) - (9,835,280)
Options expired - 13,070 (13,070) - - -
Balance as
at 31 December
2016 329,032,074 (259,254,583) 54,686 11,309,289 (41,506,662) 39,634,804
----------- ------------- --------- ------------ ------------ -------------
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2016
Note CONSOLIDATED GROUP
31 December 31 December
2016 2015
$ $
CASH FLOWS FROM OPERATING
ACTIVITIES
Payments to suppliers and
employees (1,121,361) (1,988,210)
Exploration, due diligence
and evaluation - (626,569)
Interest received 389 4,445
Net cash used in operating
activities 22(b) (1,120,972) (2,610,334)
----------- -----------
CASH FLOWS FROM INVESTING
ACTIVITIES
Purchase of plant and equipment (931) (3,977)
Payments for exploration
expenditure (2,335,294) (2,928,374)
Recovery of VAT in Peru - 13,555
Purchase of Miraflores
Compania, net of cash acquired* (253,637) -
----------- -----------
Net cash used in investing
activities (2,589,862) (2,918,796)
----------- -----------
CASH FLOWS FROM FINANCING
ACTIVITIES
Proceeds from issue of
shares 3,185,207 5,625,590
Payments in respect to
capital raisings (381,677) (265,162)
Net cash provided by financing
activities 2,803,530 5,360,428
----------- -----------
Net decrease in cash held (907,304) (168,702)
Cash and cash equivalents
at the beginning of the
year 949,790 1,192,693
Effect of exchange rates
on cash holdings in foreign
currencies 29,062 (74,201)
----------- -----------
Cash and cash equivalents
at the end of the year 22(a) 71,548 949,790
=========== ===========
William Howe
Managing Director
Metminco Limited ABN Suite 401, 6 Help Street,
43 119 759 349 Chatswood NSW, 2067
ASX Code: MNC.AX; AIM Tel: +61 (0) 2 9460 1856;
Code: MNC.L Fax: +61 (0) 2 9460 1857
www.metminco.com.au
For further information,
please contact:
METMINCO LIMITED
Phil Killen Office: +61 (0) 2
9460 1856
NOMINATED ADVISOR AND BROKER
RFC Ambrian
Australia
Will Souter / Nathan Forsyth Office: +61 (0) 2
9250 0000
United Kingdom
Charlie Cryer Office: +44 (0) 20
3440 6800
JOINT BROKER
SP Angel Corporate Finance
LLP (UK)
Ewan Leggat Office: +44 (0) 20
3470 0470
PUBLIC RELATIONS
Camarco
United Kingdom
Gordon Poole / Tom Huddart Office: + 44 (0) 20
3757 4997
----------------------------- --------------------
This information is provided by RNS
The company news service from the London Stock Exchange
END
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(END) Dow Jones Newswires
April 03, 2017 02:00 ET (06:00 GMT)
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