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STI Stratex

0.425
0.00 (0.00%)
28 Mar 2024 - Closed
Delayed by 15 minutes
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

Stratex International PLC Interim Results (8714G)

11/08/2016 7:01am

UK Regulatory


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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

END

IR PMMPTMBIBBTF

(END) Dow Jones Newswires

August 11, 2016 02:01 ET (06:01 GMT)

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