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Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Stratex | LSE:STI | London | Ordinary Share | GB00B0T29327 | ORD 0.1P |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 0.425 | 0.40 | 0.45 | 0.00 | 00:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
0 | 0 | N/A | 0 |
TIDMSTI
RNS Number : 8714G
Stratex International PLC
11 August 2016
Stratex International Plc
("Stratex", the "Company" or the "Group")
Interim Results
For the six-month period ended 30 June 2016
Stratex International Plc, the AIM-quoted exploration and development company focused on gold and base metals in West Africa and Turkey, where it holds a 45%-interest in Altıntepe, a producing gold mine, announces its unaudited interim results for the six-month period ended 30 June 2016.
Operational Highlights:
-- Altıntepe - production at the Altıntepe Gold Mine ("Altıntepe" or the "Mine") in Turkey is on track to meet the minimum annual production target of 30,000 oz Au this year - 19,467 oz Au produced during H1-16;
-- Muratdere - dilution to 14.87% interest in the Muratdere Cu-Au porphyry project in Turkey following the decision not to contribute to the Group's pro rata share of project development costs on the basis of low copper prices;
-- Dalafin - low-cost exploration programme, comprising mapping, soil sampling, and outcrop and lag sampling, completed at Dalafin gold project in Senegal. Further zones of mineralisation identified, including a 750m extension of the Faré South prospect soil anomaly;
-- Thani Stratex Resources - US$1.25 million and US$2 million raised to fund drilling in Djibouti (commenced Q2) and exploration in Egypt, respectively. Stratex interest diluted to 30.4% as a result of the raisings and an issue of shares to employees;
-- Goldstone - GBP1 million raised for development of Homase-Akrokerri gold project in Ghana (including c.2,000m reverse circulation drilling programme) following appointment of Stratex Director Emma Priestley as Goldstone CEO. Stratex interest remains unchanged at 33.45%.
Financial Overview:
-- The Group's operating loss for the first six months is GBP1,185,819 and compares to an operating loss for the same period last year of GBP1,182,009. The pre-tax loss of GBP1,984,573 compares to a pre-tax loss for the same period last year of GBP1,388,082;
-- The increase in the pre-tax loss during the period arises due to the reduction in the Company's interest in its associated companies, Thani Stratex Resources Limited and Muratdere Madencilik, resulting in accounting losses in the period of GBP832,472 and GBP319,414 respectively. Additionally, the Company has withdrawn from the management of Tembo Gold Corporation and Dr Bob Foster has resigned from its board of directors. As a result, the investment in Tembo no longer meets the requirements for equity accounting and a net loss of GBP1,069,267 has been recognised;
-- The above losses have been partially offset by the Company's share of profits from production at the Altıntepe Mine which amount to GBP1.6 million;
-- The Company continues to keep a tight control on costs and the net cash used in operating activities during the period was GBP802,260 compared to GBP1,670,921 in the same period last year;
-- The cash balance for the Group as at 30 June 2016 was GBP2,728,190 (30 June 2015: GBP2,533,278).
Chairman's Statement
Looking back at the first half of 2016 it would appear that the fortunes of smaller exploration and mining companies have at last bottomed. The gold price has improved significantly and the outlook for base metals is looking more positive, although many commodities' prices remain relatively weak. The shares of juniors, including Stratex, have strengthened and equity funding has recommenced on improved terms.
Stratex's operating loss for the period, at GBP1.18 million, was similar to 2015 although the accounting treatment of associated companies contributed to an increased pre-tax loss of GBP1.98 million against GBP1.39 million last year; our interest in Thani Stratex Resources was diluted by a third party equity funding and Muratdere Madencilik and Tembo Gold Corporation ceased to be treated as associates for accounting purposes. The consolidated cash balance at 30 June 2016 was GBP2.73 million (GBP2.53 million at 30 June 2015).
On the exploration front, further zones of mineralisation were identified at 85% owned Dalafin in Senegal, following additional mapping, soil sampling, outcrop and lag sampling principally at Faré South. The best means of furthering the project are under consideration, including further exploration and the involvement of a joint-venture partner.
At the Muratdere Cu-Au porphyry project in Turkey, Stratex's interest has been diluted to 14.87% following a decision not to contribute pro rata to further project development costs, on the basis of low copper prices. The Company will continue to assess the supply-demand scenario for copper and may consider supporting future work should it believe that the demand for copper, and hence the price, justifies its participation.
Thani Stratex Resources has successfully raised significant joint-venture funding for drilling in Djibouti and, as a result of the fundraisings and an issue of shares to employees during the period, Stratex's interest has now been diluted to 30.4%. A diamond drilling programme has commenced and the results are awaited. Funds are also in place, following an equity issue, to commence exploration in Egypt.
No work was possible at 33.45% owned Goldstone's Homase-Akrokerri project in Ghana in the first 6 months of the year. Following the resignation of former CEO Jurie Wessels, Stratex Director Emma Priestly took the role of interim CEO and has now been formally appointed to the board of Goldstone as CEO. Since the period end, Goldstone has raised GBP1 million. Stratex maintained its holding through a combination of converting a loan issued by Stratex to Goldstone of US$250,000 and subscribing for additional ordinary shares in Goldstone at a cost of GBP143,637. With the appointment of Emma, I considered it appropriate to step down, handing over to independent director Neil Gardyne as Chairman. Goldstone plans to drill the encouraging geochemical anomalies delineated in early 2015, which could deliver a near surface extension to the oxide part of the existing resource. We remain optimistic towards Goldstone's future as there are many other opportunities, principally in Ghana, for a well-managed, well-funded junior.
Operations at the 45% owned Altintepe Gold Mine in Turkey are progressing well. Some additional capital was required to treat clay-rich plant feed more effectively, but with 19,467 oz of gold being produced in the first half of this year, the project is well on track to meet the 30,000 oz annual minimum target. Project revenues in the first half of 2016 were US$32.7 million. However, with the exception of agreed loan repayments of US$4.2 million to our partners Bahar Madencılık, and US$190,000 to Stratex, no funds have yet been distributed.
The board of Altıntepe Madencilik is currently considering the longer-term future of the Mine and the optimum means to provide for, or fund, future capital expenditure, including a provision for ultimate closure and restoration, which was always to be financed out of cash flow. Once the longer term planning of the Mine has been fully evaluated and costed, to allow an estimate of distributable cash flow, distribution of net cash can be initiated on the accelerated payback basis of 80% to Bahar and 20% to Stratex until Bahar's pre-production costs are repaid. Thereafter, net cash distributions will be made 55% to Bahar and 45% to Stratex.
I look forward to updating you on developments at Altintepe, Dalafin, Muratdere, Thani Stratex and Goldstone in due course.
Christopher Hall
Non-Executive Chairman
10 August 2016
Statement of Consolidated Comprehensive Income 6 months 6 months to to 30 June 30 June 2016 2015 Unaudited Unaudited Note GBP GBP Continuing operations Revenue - - -------------------------------------------------- ------------ ------------ Cost of sales - - ================================================== ============ ============ Gross Profit - - ================================================== ============ ============ Administration expenses (1,240,506) (1,142,625) ================================================== ============ ============ Exchange gains/(losses) - net 54,687 (39,384) -------------------------------------------------- ------------ ------------ Operating loss (1,185,819) (1,182,009) ================================================== ============ ============ Finance income 9,768 25,923 ================================================== ============ ============ Share of profits/(losses) of investments accounted for using the equity method 1,412,631 (235,573) ================================================== ============ ============ Net loss on sale of associate companies (2,221,153) - 5 ================================================== ============ ============ Other gains - 3,577 -------------------------------------------------- ------------ ------------ Loss before income tax (1,984,573) (1,388,082) ================================================== ============ ============
Income tax - - -------------------------------------------------- ------------ ------------ Loss for the period (1,984,573) (1,388,082) ================================================== ============ ============ Other comprehensive income: Items that may be reclassified subsequently to profit or loss: ================================================== ============ ============ Share of comprehensive income of investments accounted for using the equity method (246,457) 92,260 ================================================== ============ ============ Exchange differences on translation of foreign operations 2,340,803 (695,427) -------------------------------------------------- ------------ ------------ Other comprehensive income net of tax 2,094,346 (603,167) -------------------------------------------------- ------------ ------------ Total comprehensive income for the period 109,773 (1,991,249) ================================================== ============ ============ Loss for the period attributable to: ================================================== ============ ============ Owners of the Parent Company (1,875,835) (1,232,594) ================================================== ============ ============ Non-controlling interest (108,738) (155,488) -------------------------------------------------- ------------ ------------ Loss for the period (1,984,573) (1,388,082) ================================================== ============ ============ Total comprehensive income attributable to: ================================================== ============ ============ Owners of the Parent Company (9,686) (1,803,639) ================================================== ============ ============ Non-controlling interest 119,459 (187,610) -------------------------------------------------- ------------ ------------ Total comprehensive income for the period 109,773 (1,991,249) ================================================== ============ ============ Earnings per share - continuing operations: ================================================== ============ ============ Basic and diluted earnings per share attributable to equity holders of the Company (pence) 7 (0.40) (0.26) =========================================== ===== ============ ============ Statement of Consolidated Financial Position 30 June 30 June 31 December 2016 2015 2015 Unaudited Unaudited Audited GBP GBP GBP ASSETS =================================== ============ ============ ============ Non-current assets =================================== ============ ============ ============ Property, plant and equipment 20,253 51,397 32,240 =================================== ============ ============ ============ Intangible assets 9,679,159 7,676,288 8,323,340 =================================== ============ ============ ============ Investments in equity-accounted associates 6,965,034 8,425,567 7,645,184 =================================== ============ ============ ============ Available-for-sale financial assets 1,038,400 227,082 227,082 =================================== ============ ============ ============ Trade and other receivables 1,120,413 1,210,238 1,322,135 =================================== ============ ============ ============ Deferred tax asset 307,992 133,362 274,907 ----------------------------------- ------------ ------------ ------------ 19,131,251 17,723,934 17,824,888 ----------------------------------- ------------ ------------ ------------ Current assets =================================== ============ ============ ============ Trade and other receivables 864,853 788,133 873,697 =================================== ============ ============ ============ Cash and cash equivalents 2,728,190 2,533,278 4,132,073 ----------------------------------- ------------ ------------ ------------ 3,593,043 3,321,411 5,005,770 =================================== ============ ============ ============ Total assets 22,724,294 21,045,345 22,830,658 =================================== ============ ============ ============ EQUITY Capital and reserves attributable to owners of the Company =================================== ============ ============ ============ Ordinary share capital 4,673,113 4,673,113 4,673,113 =================================== ============ ============ ============ Share premium 20,426,431 20,426,431 20,426,431 =================================== ============ ============ ============ Other reserves 1,592,512 (1,207,436) (125,714) =================================== ============ ============ ============ Retained earnings (6,527,206) (5,637,666) (4,807,122) ----------------------------------- ------------ ------------ ------------ Total equity attributable to owners of the Company 20,164,850 18,254,442 20,166,708 =================================== ============ ============ ============ Non-controlling interests 2,371,191 2,258,843 2,251,732 ----------------------------------- ------------ ------------ ------------ Total Equity 22,536,041 20,513,285 22,418,440 LIABILITIES Non-current liabilities =================================== ============ ============ ============ Employee termination benefits 31,170 25,644 27,013 =================================== ============ ============ ============ Deferred tax liabilities 308 453 275 ----------------------------------- ------------ ------------ ------------ 31,478 26,097 27,288 ----------------------------------- ------------ ------------ ------------ Current liabilities =================================== ============ ============ ============ Trade and other payables 156,775 505,963 384,930 =================================== ============ ============ ============ Total liabilities 188,253 532,060 412,218 ----------------------------------- ------------ ------------ ------------ Total equity and liabilities 22,724,294 21,045,345 22,830,658 =================================== ============ ============ ============
Statement of Consolidated Changes in Equity
Shares Non-controlling Share Share Merger option Retained Translation Interest Total Capital Premium Reserve reserve earnings reserve Total equity GBP GBP GBP GBP GBP GBP GBP GBP GBP As at 1 January 2016 4,673,113 20,426,431 (485,400) 709,299 (4,807,122) (349,613) 20,166,708 2,251,732 22,418,440 ---------------------------------------- --------- ---------- --------- --------- ----------- ----------- ----------- --------------- ----------- Share based payments - - - 7,828 - - 7,828 - 7,828 ---------------------------------------- --------- ---------- --------- --------- ----------- ----------- ----------- --------------- ----------- Share options cancelled - - - (155,751) 155,751 - - - - ---------------------------------------- --------- ---------- --------- --------- ----------- ----------- ----------- --------------- ----------- Total contributions by and distributions to owners of the Company - - - (147,923) 155,751 - 7,828 - 7,828 ---------------------------------------- --------- ---------- --------- --------- ----------- ----------- ----------- --------------- ----------- Comprehensive income for the period: ---------------------------------------- --------- ---------- --------- --------- ----------- ----------- ----------- --------------- ----------- * Loss for the period - - - - (1,875,835) - (1,875,835) (108,738) (1,984,573)
---------------------------------------- --------- ---------- --------- --------- ----------- ----------- ----------- --------------- ----------- * Other comprehensive income - - - - - 1,866,149 1,866,149 228,197 2,094,346 ---------------------------------------- --------- ---------- --------- --------- ----------- ----------- ----------- --------------- ----------- Total comprehensive income for the period - - - - (1,875,835) 1,866,149 (9,686) 119,459 109,773 ---------------------------------------- --------- ---------- --------- --------- ----------- ----------- ----------- --------------- ----------- As at 30 June 2016 4,673,113 20,426,431 (485,400) 561,376 (6,527,206) 1,516,536 20,164,850 2,371,191 22,536,041 ======================================== ========= ========== ========= ========= =========== =========== =========== =============== =========== As at 1 January 2015 4,673,113 20,426,431 (485,400) 683,872 (4,415,707) (841,777) 20,040,532 2,446,453 22,486,985 ---------------------------------------- --------- ---------- --------- --------- ----------- ----------- ----------- --------------- ----------- Share based payments - - - 17,549 - - 17,549 - 17,549 ---------------------------------------- --------- ---------- --------- --------- ----------- ----------- ----------- --------------- ----------- Share options cancelled - - - (10,635) 10,635 - - - - ---------------------------------------- --------- ---------- --------- --------- ----------- ----------- ----------- --------------- ----------- Total contributions by and distributions to owners of the Company - - - 6,914 10,635 - 17,549 - 17,549 ---------------------------------------- --------- ---------- --------- --------- ----------- ----------- ----------- --------------- ----------- Comprehensive income for the period ---------------------------------------- --------- ---------- --------- --------- ----------- ----------- ----------- --------------- ----------- * Loss for the period - - - - (1,232,594) - (1,232,594) (155,488) (1,388,082) ---------------------------------------- --------- ---------- --------- --------- ----------- ----------- ----------- --------------- ----------- * Other comprehensive income - - - - - (571,045) (571,045) (32,122) (603,167) ---------------------------------------- --------- ---------- --------- --------- ----------- ----------- ----------- --------------- ----------- Total comprehensive income for the period - - - - (1,232,594) (571,045) (1,803,639) (187,610) (1,991,249) ---------------------------------------- --------- ---------- --------- --------- ----------- ----------- ----------- --------------- ----------- As at 30 June 2015 4,673,113 20,426,431 (485,400) 690,786 (5,637,666) (1,412,822) 18,254,442 2,258,843 20,513,285 ======================================== ========= ========== ========= ========= =========== =========== =========== =============== =========== Statement of Consolidated Cash Flows 6 months 6 months 12 months to to to 30 June 30 June 31 December 2016 2015 2015 Unaudited Unaudited Audited Cash flow from operating GBP GBP GBP activities ================================== ============ ============ ============== Loss before income tax (1,984,573) (1,388,082) (790,936) =================================== ============ ============ ============== Issue of share options 7,828 17,549 36,062 =================================== ============ ============ ============== Depreciation 15,137 21,413 44,015 =================================== ============ ============ ============== Share of (profits)/losses of associates (1,412,631) 235,573 1,368,351 =================================== ============ ============ ============== Net loss on sale of associates 2,221,153 - 70,818 =================================== ============ ============ ============== Fixed asset write-offs - - 688 =================================== ============ ============ ============== Increase in employee termination benefit fund 836 753 707 =================================== ============ ============ ============== Other income (9,768) (25,923) (3,059,498) =================================== ============ ============ ============== Foreign exchange movements on operating activities 351,974 14,085 420,393 =================================== ============ ============ ============== Changes in working capital, excluding the effects of exchange differences on consolidation: ================================== ============ ============ ============== Trade and other receivables 235,941 10,607 (186,854) =================================== ============ ============ ============== Trade and other payables (228,157) (556,896) (677,928) ----------------------------------- ------------ ------------ -------------- Net cash used in operating activities (802,260) (1,670,921) (2,774,182) ----------------------------------- ------------ ------------ -------------- Cash flows from investing activities ================================== ============ ============ ============== Purchase of property, plant, and equipment (774) (4,727) (8,149) =================================== ============ ============ ============== Purchase of intangible assets (396,032) (528,198) (816,962) =================================== ============ ============ ============== Investment in related companies (214,585) - (35,090) =================================== ============ ============ ============== Interest received 9,768 25,923 22,839 ----------------------------------- ------------ ------------ -------------- Net cash used in investing activities (601,623) (507,002) (837,362) ----------------------------------- ------------ ------------ -------------- Cash flows from financing activities ================================== ============ ============ ============== Funds received from sale of royalty interests - - 3,036,659 =================================== ============ ============ ============== Funds received from project partners - 4,243 - ---------------------------------- ------------ ------------ -------------- Net cash generated from financing activities - 4,243 3,036,659 ----------------------------------- ------------ ------------ -------------- Net decrease in cash and cash equivalents (1,403,883) (2,173,680) (574,885) =================================== ============ ============ ============== Cash and cash equivalents at beginning of the period 4,132,073 4,706,958 4,706,958 ----------------------------------- ------------ ------------ -------------- Cash and cash equivalents at end of the period 2,728,190 2,533,278 4,132,073 =================================== ============ ============ ==============
Notes to the unaudited financial statements
1. Basis of preparation
The condensed consolidated interim financial statements have been prepared in accordance with International Accounting Standard 34 'Interim Financial Reporting'. The condensed consolidated interim financial statements should be read in conjunction with the annual financial statements for the year ended 31 December 2015, which have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union.
2. Financial Information
The interim financial information set out above does not constitute statutory accounts within the meaning of the Companies Act 2006. It has been prepared on a going concern basis in accordance with the recognition and measurement criteria of International Financial Reporting Standards (IFRS) as adopted by the European Union. Except as described below, the accounting policies applied in preparing the interim financial information are consistent with those that have been adopted in the Group's 2015 audited financial statements. Statutory financial statements for the year ended 31 December 2015 were approved by the Board of Directors on 8 March 2016 and delivered to the Registrar of Companies. The report of the auditors on those financial statements was unqualified.
Risks and uncertainties
The key risks that could affect the Group's short and medium term performance and the factors that mitigate those risks have not substantially changed from those set out in the Group's 2015 Annual Report and Financial Statements, a copy of which is available on the Company's website: www.stratexinternational.com. The Group's key financial risks are the availability of adequate funding and foreign exchange movements.
Accounting Policies
Critical accounting estimates and judgements
The preparation of condensed consolidated interim financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the end of the reporting period. Significant items subject to such estimates are set out in note 4 of the Group's 2015 Annual Report and Financial Statements. The nature and amounts of such estimates have not changed significantly during the interim period. The condensed consolidated interim financial statements have been prepared under the historical cost convention as modified by the measurement of certain investments at fair value.
Changes in accounting policy and disclosures
New and amended standards adopted by the Group:
There are no IFRSs or IFRIC interpretations that are effective for the first time for the financial year commencing 1 January 2016 that would be expected to have a material impact on the Group.
The financial information for the 6 months ended 30 June 2016 and the 6 months ended 30 June 2015 has not been audited.
The business is not subject to seasonal variations. No dividends have been paid in the period (2015: GBPnil).
3. Operating Segments
Operating segments are reported in a manner which is consistent with internal reports provided to the Board and are used by the Directors to make strategic decisions. The management structure reflects these segments. The Group's exploration operations and investments are based in three geographical areas, namely Turkey, East Africa and West Africa. The Group's head office is located in the UK and provides corporate and support services to the Group and researches new areas of exploration opportunities.
The allocation of profits, losses, assets and liabilities by operating segment is as follows:
(Profit)/Loss for the period: Turkey East Africa West UK Total Africa 6 months to 30 June 2016 =========================== ==================== ============ ============ =========== ============ Administrative costs 282,605 3,361 412,946 530,105 1,229,017 =========================== ==================== ============ ============ =========== ============ Inter-segment charges 89,213 - 334,036 (423,249) - =========================== ==================== ============ ============ =========== ============ Finance income - - (287) (9,481) (9,768) =========================== ==================== ============ ============ =========== ============ Depreciation 1,955 - 5,235 4,299 11,489 =========================== ==================== ============ ============ =========== ============ Exchange losses (36,870) - (11,906) (5,911) (54,687) =========================== ==================== ============ ============ =========== ============ Share of (profits)/losses of associates (1,636,081) 223,450 - - (1,412,631) =========================== ==================== ============ ============ =========== ============ Net loss on disposal of associates 319,414 1,901,739 - - 2,221,153 =========================== ==================== ============ ============ =========== ============ (Profit)/Loss before Income Tax (979,764) 2,128,550 740,024 95,763 1,984,573 --------------------------- -------------------- ------------ ------------ ----------- ------------ 6 months to 30 June 2015 =========================== ==================== ============ ============ =========== ============ Administrative costs 269,137 7,842 344,538 499,984 1,121,501 =========================== ==================== ============ ============ =========== ============ Inter-segment charges 114,712 - 378,362 (493,074) - =========================== ==================== ============ ============ =========== ============ Finance income - - (11,108) (14,815) (25,923) =========================== ==================== ============ ============ =========== ============ Depreciation 2,187 4,099 1,756 9,505 17,547 =========================== ==================== ============ ============ =========== ============ Exchange losses 1,347 - 4,573 33,464 39,384 =========================== ==================== ============ ============ =========== ============ Share of losses of associates 46,230 189,343 - - 235,573 =========================== ==================== ============ ============ =========== ============ Loss before Income Tax 433,613 201,284 718,121 35,064 1,388,082 --------------------------- -------------------- ------------ ------------ ----------- ------------ Assets and liabilities: Turkey East Africa West UK Total Africa 6 months to 30 June 2016 =========================== ==================== ============ ============ =========== ============ Intangible assets - - 9,679,159 - 9,679,159 =========================== ==================== ============ ============ =========== ============ Property, plant and equipment 9,903 - 9,029 1,321 20,253 =========================== ==================== ============ ============ =========== ============ Associate companies 1,757,304 5,207,730 - - 6,965,034 =========================== ==================== ============ ============ =========== ============ Cash and other assets 1,122,273 381,492 1,282,663 3,273,420 6,059,848 =========================== ==================== ============ ============ =========== ============ Liabilities (79,516) - (39,025) (69,712) (188,253) =========================== ==================== ============ ============ =========== ============ Inter-segment (3,607,229) - (9,891,562) 13,498,791 - --------------------------- -------------------- ------------ ------------ ----------- ------------ Net Assets (797,265) 5,589,222 1,040,264 16,703,820 22,536,041 --------------------------- -------------------- ------------ ------------ ----------- ------------ 6 months to 30 June 2015 =========================== ==================== ============ ============ =========== ============ Intangible assets - - 7,676,288 - 7,676,288 =========================== ==================== ============ ============ =========== ============ Property, plant and equipment 11,582 - 24,487 15,328 51,397 =========================== ==================== ============ ============ =========== ============ Associate companies 708,061 7,717,506 - - 8,425,567 =========================== ==================== ============ ============ =========== ============ Cash and other assets 519,515 - 1,642,284 2,730,294 4,892,093 =========================== ==================== ============ ============ =========== ============ Liabilities (381,124) - (34,212) (116,724) (532,060) =========================== ==================== ============ ============ =========== ============ Inter-segment (3,178,994) - (8,907,644) 12,086,638 -
--------------------------- -------------------- ------------ ------------ ----------- ------------ Net Assets (2,320,960) 7,717,506 401,203 14,715,536 20,513,285 --------------------------- -------------------- ------------ ------------ ----------- ------------
Cash and other assets include cash and cash equivalents amounting to GBP2,728,190 at 30 June 2016, (2015: GBP2,533,278).
4. Share of profits/(losses) of investments accounted for using the equity method.
This includes the Company's share of profits from the mining operations in Altıntepe Madencilik Sanayi ve Ticaret AS amounting to GBP1,636,073 (30 June 2015: GBP33,455 loss).
5. Net loss on disposal of associate companies
2016 2015 GBP GBP Loss on disposal of associate companies (3,032,471) - Fair market value of interest retained 811,318 - in former associates ------------ ----- Net loss (2,221,153) - ------------ -----
a) The Company's shareholding interest in Muratdere Madencilk Sanayi ve Ticaret AS was reduced from 30% to 14.87% as a result of not participating in the share placing of 22 February 2016. The Company's investment no longer meets the requirements for equity accounting. A fair market value of GBP429,826 equal to the original cost of the investment has been attributed to the remaining investment. The resulting net loss is GBP319,414.
b) Dr Bob Foster, the CEO of Stratex, resigned from the board of the Tembo Gold Corporation on 5 May 2016 and Stratex is no longer involved in the management of the company. As the investment no longer meets the requirements for equity accounting a fair market value of GBP381,492 has been attributed to its 12.8% investment based on the market price of the Tembo shares at the time of the change in accounting treatment. The resulting net loss is GBP1,069,267.
c) During the period Thani Stratex Resources Limited has undertaken share placings in which the Company has not participated, and has issued shares to employees. As a result the Company's shareholding interest has reduced from 40% to 30.4%. This has given rise to a net loss of GBP832,472. The Group's investment in Thani Stratex Resources Limited continues to meet the requirements for equity accounting as an associate company.
6. Related party transactions
Directors of the Company received total remuneration of GBP242,046 for the six months ended 30 June 2016 (six months ended 30 June 2015 - GBP254,439).
7. Earnings per share
The calculation of earnings per share is based on the loss attributable to equity holders of the Company of GBP1,875,835 for the period ended 30 June 2016 (30 June 2015: 1,232,594) and the weighted average number of shares in issue of 467,311,276 in the periods ended 30 June 2016 and 30 June 2015. There is no difference between the basic and diluted earnings per share.
8. Events after the reporting period
On 28 July 2016 Goldstone Resources Limited raised additional funding by means of a share placing. The Company maintained its 33.45% shareholding interest in Goldstone through a combination of converting the loan of US$250,000 due from Goldstone and subscribing for additional ordinary shares in Goldstone Resources Limited at a cash cost of GBP143,637.
9. Approval of interim financial statements
The interim financial statements were approved by the Board of Directors on 10 August 2016.
** ENDS **
For further information please visit www.stratexinternational.com, email info@stratexplc.com, or contact:
Stratex International Tel: +44 (0)20 7830 9650 Plc Bob Foster / Christopher Hall / Claire Bay Grant Thornton UK LLP Tel: +44 (0)20 7383 5100 Philip Secrett / Jen Clarke / Daniel Bush Hannam & Partners Tel: +44 (0)20 7907 8500 Neil Passmore / Andrew Chubb
Notes to Editors:
Since listing in 2006, Stratex has discovered more than 2.2 million ounces of gold and 7.09 million ounces of silver, as well as 186,000 tonnes of copper. The Company achieved first gold pour at its 45%-owned Altıntepe gold mine in Turkey in November 2015 and as at 30 June 2016, the Mine had produced 19,467 oz Au. It also owns 14.87% of a copper-gold project at feasibility stage. With its current cash position, projected cash returns and no debt, the Company is well-placed to advance its existing exploration programmes and is also actively seeking to acquire advanced projects that are at the drill-ready stage or even have identified resources.
This information is provided by RNS
The company news service from the London Stock Exchange
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