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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Sula Iron | LSE:SULA | London | Ordinary Share | GB00B6Y3CV16 | ORD 0.001P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 0.06 | 0.055 | 0.065 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
From May 2019 to May 2024
TIDMSULA
RNS Number : 7526C
Sula Iron & Gold PLC
30 June 2016
30 June 2016
Sula Iron & Gold plc
("Sula" or the "Company")
Interim Results
For the six months to 31 March 2016
Sula (AIM: SULA), a multi-commodity exploration company focused on Sierra Leone, is pleased to announce its unaudited consolidated Interim Results for the six months ended 31 March 2016, in respect of the Company and its wholly owned subsidiary, Blue Horizon (SL) Ltd ("Blue Horizon") (together the "Group").
OPERATIONAL HIGHLIGHTS
-- 1,556.2m diamond drilling campaign completed with gold mineralisation greater than 0.5 g/t Au being intersected within eight of the ten drillholes completed.
-- Drilling has identified multiple sub-parallel mineralised shears over a strike length of approximately 480m.
-- The total length-weighted grade of all significant drill intersections equated to 4.21 g/t Au with estimated true thicknesses ranging from 0.4m to 7.1m and averaging 1.5m.
-- Regional sampling programme continues to confirm the high-grade nature of mineralisation beyond the limits of the currently defined Exploration Target and maiden drill site with samples to date returning assay results up to 69.2 g/t Au.
-- Regional samples submitted for assay, returned results in excess of 0.5 g/t Au, reporting a weighted average of 9.0 g/t Au and a maximum of 69.2 g/t Au.
-- Post period end, Sula commenced an Induced Polarisation ("IP") Survey that has highlighted the larger scale potential of the Group's Ferensola Gold Project outside of the currently defined Exploration Target with significant "drill ready" targets now identified.
FINANCIAL HIGHLIGHTS
-- Approximately GBP1.0 million gross successfully raised by way of equity placements with new and existing investors during the period.
-- Loss for the period of GBP1.11 million (2015: GBP0.89 million loss), resulting in a loss per share of 0.19 pence (2015: 0.26 pence).
-- Net assets of GBP5.97 million at the period end (30 September 2015: GBP5.78 million).
Nick Warrell, Chief Executive Officer of Sula, commented:
"It has been another active 6 month period for Sula, having completed another successful drill programme and further advanced the potential gold target through the IP survey. The current uncertainty and volatility in world markets has not helped us in recent weeks, but I'm pleased to report that Sula is currently in late stage contractual negotiations with respect to securing a potential joint venture partner to assist with the development of its Ferensola Gold Project, including the provision of additional working capital to Sula. An update on this matter will be provided in due course, as and when appropriate."
Enquiries:
Sula Iron & Gold plc +44 (0) 20 7583 8304
Nick Warrell / Matt Wood / Howard Baker
www.sulaironandgold.com
Strand Hanson Limited (Financial and Nominated Adviser) +44 (0) 20 7409 3494
James Harris / Matthew Chandler / James Dance
VSA Capital Limited (Broker) +44 (0) 20 3005 5000
Andrew Raca
Yellow Jersey (Financial PR) +44 (0) 7544 275882
Dominic Barretto / Harriet Jackson
CHIEF EXECUTIVE OFFICER'S STATEMENT
INTRODUCTION
I am pleased to present the Group's unaudited consolidated results for the 6 months ended 31 March 2016, a period in which the Company has continued to make important strides in progressing its strategy towards becoming a leading mining exploration company. The period under review has seen the Company focus entirely on its gold assets within its wholly owned Ferensola licence area in Sierra Leone.
OPERATIONS
During the period, Sula continued to undertake exploration activities on its Ferensola Gold Project with the key operational activities comprising the completion of a maiden extended drilling campaign and the continued mapping and sampling of the licence area.
Sula completed a 1,556.2m drilling campaign in November 2015 with the principal highlights being:
-- gold mineralisation greater than 0.5 g/t Au intersected within eight of the ten drillholes completed;
-- identification of multiple sub-parallel mineralised shears over a strike length of approximately 480m; and
-- total length-weighted grade of all significant drill intersections, including certain resampled historic drillholes, equating to 4.21 g/t Au with estimated true thicknesses ranging from 0.4m to 7.1m and averaging 1.5m.
Mineralisation is hosted by a complex, north-northeast striking shear zone within mafic volcanics. The shear zone consists of multiple, discrete, biotite-altered shears and a peripheral zone of veining, with several phases of overprinting deformation and sulphide deposition. Gold is primarily associated with late-stage, massive pyrite breccias that form within the highly sheared intervals and to a lesser extent with distributed veining in the adjacent wall rock.
A preliminary interpretation of the logging and assay data, utilising the structural measurements recorded by SRK Consulting (UK) Ltd, shows that the overall shear zone, extends over a strike length of approximately 480m and comprises multiple sub-parallel strands that dip at an average of 75deg to the west-northwest and display individual continuity over distances in the order of 100m to 200m. Mineralisation is currently open at depth.
In addition to the drilling results, sulphide stone and goldstone samples were collected during an on-going regional sampling programme with the samples being taken from across the licence area and up to 2km from the November drill site. All reported samples are interpreted by Sula to be from, or close to, their primary source and were collected from areas that coincide with the regional fold interpretation that covers an approximate 10km strike length.
Of the samples collected during the regional sampling programme to date, 17 samples returned assay results greater than 0.5 g/t Au with a weighted average grade of 9.0 g/t Au.
Post period end, Sula commenced an Induced Polarisation ("IP") survey across the Ferensola licence area. In summary, the IP survey has highlighted the larger scale gold prospectivity in the Group's Ferensola licence area, outside of the currently defined Exploration Target, with results received to date verifying the mineralisation potential within areas previously sampled by Sula and which are further supported by the regional magnetic anomaly data previously used to define the mineralised fold belt. The results returned to date show significantly stronger IP along an "Eastern Target" to those recorded on the Sanama Hill November drill target. The Eastern Target currently shows a potential strike extent of over 2km. Additional targets have also been identified based on a review of the regional magnetic data and regional sampling results. Of particular significance, a "Western Target" anomaly is observed that coincides with grab sample results of 1.0, 2.56 and 4.9 g/t Au that has an apparent strike length of approximately 6km. This Western Target, along with other anomalies observed is expected to form part of future IP surveys, covering a greater extent of the licence area. The Sanama Hill / Dalakuru and the Eastern Target anomalies, supported by sampling, magnetic and IP data, and in the case of The Sanama Hill / Dalakuru also by historic drilling and drilling by Sula, currently form significant "drill ready" targets.
FINANCIAL REVIEW
At the period end, Sula had net assets of approximately GBP5.97 million (30 September 2015: GBP5.78 million).
During the period under review, the Company raised approximately GBP1.0 million (gross) of additional funding through the issue of new equity to certain new and existing institutional and private client investors and certain directors in order to pursue the Board's strategy of generating drill targets on the Group's Ferensola Gold Project. At the period end, the Group's cash position was GBP0.275 million.
The loss before taxation for the period was GBP1.1 million (2015: GBP0.89 million), representing a loss per share of 0.19 pence (2015: 0.26 pence).
FUNDRAISINGS
During the period under review, the Company issued new equity to raise approximately GBP1.0 million (gross) of new funds, of which GBP0.5 million was raised via a placing of 166,666,664 ordinary shares at a price of 0.3 pence in October 2015. A further placing and subscription of 181,250,000 ordinary shares and 131,250,000 ordinary shares respectively at a price of 0.16 pence was successfully completed in February 2016 generating an additional GBP0.5 million in new funds. The net proceeds of the funds raised are being utilised to advance the Company's Ferensola Gold Project. At the period end, and as at the date of this statement, the Company has 902,681,924 ordinary shares of 0.1p each in issue.
OUTLOOK AND FUTURE FUNDING
As noted above, the Group's cash position at the period end was GBP0.275 million and, accordingly, the Group will need to secure additional working capital in the short term in order to, inter alia, continue the advancement of the Ferensola Gold Project. Despite the current volatility and challenging market conditions, the Board remains confident that such additional funding can be secured as required.
In this regard, Sula is currently in advanced discussions with respect to securing a potential joint venture partner to assist with the development of its Ferensola Gold Project, including the provision of additional working capital to Sula. There can be no guarantee that such a transaction will ultimately be completed and an update will be provided in due course, as and when appropriate.
I would like to take this opportunity to thank all of our shareholders, advisers and other stakeholders for their continued support and interest in the Group's activities and look forward to reporting further progress over the remainder of 2016.
Nick Warrell
Chief Executive Officer
30 June 2016
SULA IRON & GOLD PLC
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHSED 31 MARCH 2016
Hot Features
Premium
6 months 6 months Year
ended ended ended
31-Mar-16 31-Mar-15 30-Sep-15
(unaudited) (unaudited) (audited)
Note GBP'000 GBP'000 GBP'000
------------- ------------- -----------
Revenue - - 2
Cost of - - -
sales
------------- ------------- -----------
Gross
profit - - 2
Administrative
expenses (930) (824) (1,678)
Share based payment
expense (181) (68) (92)
------------- ------------- -----------
Results from operating
activities (1,111) (892) (1,770)
------------- ------------- -----------
Loss before taxation (1,111) (892) (1,768)
Taxation - - -
------------- ------------- -----------
Loss for the period (1,111) (892) (1,768)
------------- ------------- -----------
Other comprehensive (loss)/Income
------------- -------------
Exchange translation 187 190 54
------------- ------------- -----------
Total other comprehensive
loss for the period (924) (702) (1,714)
============= ============= ===========
Loss per share
Basic and diluted
loss per share
(pence) 5 (0.19) (0.26) (0.56)
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2016
31-Mar-16 31-Mar-15 30-Sep-15
(unaudited)
GBP'000 (unaudited) (audited)
Notes GBP'000 GBP'000
------------- ------------- ---------------
Assets
Property, plant
and equipment 220 327 255
Intangible assets 5,534 5,504 5,428
------------- -------------
Non-current assets 5,754 5,831 5,683
------------- ------------- ---------------
Trade and other
receivables 84 53 67
Cash and cash equivalents 275 669 250
------------- ------------- ---------------
Current assets 359 722 317
------------- ------------- ---------------
Total assets 6,113 6,553 6,000
============= ============= ===============
Equity
Share capital 4,114 3,569 3,635
Share premium 7,640 6,887 7,178
Share based payments
reserve 745 539 564
Foreign exchange
reserve 359 244 172
Retained deficit (6,884) (4,833) (5,773)
------------- ------------- ---------------
5,974 6,406 5,776
------------- ------------- ---------------
Liabilities
Trade and other
payables 139 147 224
------------- ------------- ---------------
Current liabilities 139 147 224
------------- ------------- ---------------
Total liabilities 139 147 224
------------- ------------- ---------------
Total equity and
liabilities 6,113 6,553 6,000
============= ============= ===============
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHSED 31 MARCH 2016
Share Share Exchange Retained Total
capital premium reserve deficit Equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at
1 October 2015
(audited) 3,635 7,178 172 (5,209) 5,776
Loss for the
period - - - (1,111) (1,111)
Total other comprehensive
income - - 187 - 187
Total comprehensive
income / (expense)
for the period - - 187 (1,111) (924)
---------- ---------- ----------- ------------ -----------
Issue of ordinary
shares 479 521 - - 1,000
Cost of share
issues - (59) - - (59)
Share-based payments - - - 181 181
---------- ----------- ------------ -----------
479 462 - 181 1,122
---------- ---------- -----------
Balance at 31
March 2016 (unaudited) 4,114 7,640 359 (6,139) 5,974
========== ========== =========== =========== ==========
FOR THE SIX MONTHSED 31 MARCH 2015
Share Share Exchange Retained Total
capital premium reserve deficit Equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 1
October 2014
(audited) 2,815 6,514 54 (3,469) 5,914
Loss for the
period - - - (892) (892)
Total other comprehensive
income - - 190 - 190
-------------
Total comprehensive
income / (expense)
for the period - - 190 (892) (702)
---------- ---------- ----------- ----------- ----------
Issue of ordinary
shares 754 432 - - 1,186
Costs of share
issues - (59) - - (59)
Share-based payments - - - 67 67
---------- ----------- ------------- ----------
754 373 - 67 1,194
---------- ---------- ----------- ------------- ----------
Balance at 31 March
2015 (unaudited) 3,569 6,887 244 (4,294) 6,406
========== ========== =========== ============ ==========
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEARED 30 SEPTEMBER 2015
Share Share Exchange Retained Total
capital premium reserve deficit Equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at
1 October
2014 (audited) 2,815 6,514 118 (3,533) 5,914
Loss for the
period - - - (1,768) (1,768)
Total other comprehensive
income - - 54 - 54
Total comprehensive
income / (expense)
for the period - - 54 (1,768) (1,714)
---------- ---------- ----------- ----------- -----------
Issue of ordinary
shares 820 765 - - 1,585
Costs of share
issues - (101) - - (101)
Share-based payments - - - 92 92
---------- ----------- ----------- -----------
820 664 - 92 1,576
---------- ---------- -----------
Balance at 30 September
2015 (audited) 3,635 7,178 172 (5,209) 5,776
========== ========== =========== =========== ==========
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHSED 31 MARCH 2016
6 months 6 months Year
ended ended ended
31-Mar-16 31-Mar-15 30-Sep-15
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
------------- ------------- -----------
Cash flows from operating
activities
Results from operating
activities: (1,111) (892) (1,768)
* Depreciation 66 61 122
* Impairment - 4 5
- 1 -
* Unsuccessful exploration expenditure
* Share based payment transaction 181 68 92
9 - -
* Loss on disposal of fixed assets
* Foreign exchange differences 67 12 (53)
------------- ------------- -----------
(788) (746) (1,602)
------------- ------------- -----------
Changes in:
- trade and other
receivables (14) 50 32
- trade and other
payables (89) (31) 54
------------- ------------- -----------
Net cash from operating
activities (103) (727) (1,516)
------------- -------------
Cash flows from investing
activities
Acquisition of property,
plant and equipment (25) (1) (3)
Purchase of intangibles - (15) -
------------- -------------
Net cash used in investing
activities (25) (16) (3)
------------- ------------- -----------
Cash flows from financing
activities
Proceeds from issue
of share capital 1,000 1,186 1,585
Issue costs (59) (59) (101)
Net cash flows from
financing activities 941 1,127 1,484
------------- ------------- -----------
Net increase in cash and
cash equivalents 25 384 (35)
Cash and cash equivalents
at beginning of period 250 285 285
Cash and cash equivalents
at end of period 275 669 250
============= ============= ===========
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL REPORT
1. Reporting entity
Sula Iron & Gold plc (the "Company") is a company domiciled in the United Kingdom. The condensed consolidated interim financial report of the Company as at and for the period ended 31 March 2016 comprises the results of the Company and its subsidiary (together referred to as the "Group"). The Group primarily is involved in the exploration and exploitation of mineral resources in Sierra Leone.
2. Basis of preparation
(a) Statement of compliance
As permitted, IAS 34, 'Interim Financial Reporting' has not been applied in this interim report.
The financial information presented in this interim report has been prepared using accounting policies that are expected to be applied in the preparation of the financial statements for the year ending 30 September 2016.
These policies are in accordance with the recognition and measurement principles of International Financial Reporting Standards, International Accounting Standards and Interpretations (collectively IFRS) issued by the International Accounting Standards Board as endorsed for use in the European Union, and these principles are disclosed in the Financial Statements for the year ended 30 September 2015.
The interim financial report has been prepared on a going concern basis. The financial information in this interim report does not constitute statutory accounts within the meaning of Section 435 of the Companies Act 2006. The 2016 interim financial report has not been audited or reviewed.
The Annual Report and Financial Statements for 2015 have been filed with the Registrar of Companies. The Independent Auditors' Report on the Annual Report and Financial Statement for 2015 was unqualified, did not draw attention to any matters by way of emphasis, and did not contain a statement under 498(2) or 498(3) of the Companies Act 2006.
This condensed consolidated interim financial report was approved by the Board of Directors on 29 June 2016.
(b) Judgements and estimates
Preparing the interim financial report requires Management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.
In preparing this condensed consolidated interim financial report, significant judgements made by Management in applying the Group's accounting policies and key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements as at and for the period ended 30 September 2015.
(c) Going concern
The interim financial report has been prepared on a going concern basis. Although the Group's assets are not generating revenues, an operating loss has been reported for the reporting period and an operating loss is expected to be incurred in the 12 months subsequent to the date of this report, the Directors believe, having considered all available information including cash inflows expected from the joint venture arrangement currently in late stages of negotiation, that the Group will have sufficient funds to meet its expected committed and contractual expenditure for the foreseeable future. Should the negotiations with the potential joint venture partner terminate, then the Company will have to raise new funds, which may or may not be via an equity issue, in order to provide working capital to continue the Group's operational and planned exploration activities. Thus, the Directors continue to adopt the going concern basis of accounting in preparing the interim financial report for the period ended 31 March 2016.
3. Significant accounting policies
The accounting policies applied by the Group in this condensed consolidated interim financial report are the same as those applied by the Group in its consolidated financial statements as at and for the period ended 30 September 2015.
4. Dividends
No dividends were declared or paid in the six months ended 31 March 2016 (six months ended 31 March 2015: GBPnil, year ended 30 September 2015: GBPnil).
5. Loss per share
Basic and diluted loss per share
The calculation of basic and diluted loss per share is based on the loss attributable to ordinary shareholders of GBP1.11 million (2015: GBP0.89 million) and a weighted average number of ordinary shares in issue of 596,238,931 (2015: 347,857,585).
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR EBLBXQQFEBBL
(END) Dow Jones Newswires
June 30, 2016 02:01 ET (06:01 GMT)
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