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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Tengri | LSE:TEN | London | Ordinary Share | KYG8760E1052 | ORD 0.1P (DI) |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 1.125 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
From Apr 2019 to Apr 2024
TIDMTEN
RNS Number : 1386L
Tengri Resources
29 September 2016
HALF YEAR REPORT AND
FINANCIAL STATEMENTS
FOR THE SIX MONTHSED 30 JUNE 2016
CHAIRMAN'S REPORT
REPORTING PERIOD HIGHLIGHTS
-- Completed sale of Talas Mining interests for cash consideration of US$6 million -- Became "AIM Rule 15 cash shell" for the purpose of the AIM Rules
-- Redeemed US$3.25 million unsecured convertible loan notes from the proceeds of the sale of the Talas Mining Interests. This consisted of a payment of US$2.25 million in part redemption of the US$4 million unsecured loan notes subscribed for by Robust Resources Limited and full payment of the $0.5 million unsecured loan notes subscribed for by funds managed by TIH investment Management Pte Limited and full payment of the $0.5 million unsecured loan notes subscribed for by funds managed by Argyle Street Management Limited.
.
CHAIRMAN'S STATEMENT
I have the pleasure of presenting your Company's Half-Year Report for the six months ended 30 June 2016. The first half of 2016 has been a period of transition for the Company as it completed the disposal of its Talas Mining interests located in the Kyrgyz Republic and became a "cash shell" for the purposes of the AIM Rules and has until 1 December 2016 to make an acquisition or acquisitions which constitute a reverse takeover under Rule 14 of the AIM Rules or otherwise seek readmission as an "investing company" with the attendant requirement to raise at least GBP6.0 million on or immediately before such readmission.
The Company's ability to continue as a going concern is dependent upon the financial support received from its shareholders both in the form of additional funding and deferring the repayment of the outstanding loan balance. This is further set out in the Going Concern section of the notes to the financial statements
The focus for the board during the second half of 2016 is to make an acquisition that will constitute a reverse takeover and introduce a new business in the Company that has the possibility of ultimately yielding returns for its shareholders. The Board will update shareholders as there is progress on any possible reverse takeover targets.
Kindest regards,
PETER MOSS
Chairman
Statement of Profit and Loss and other Comprehensive Income
for the SIX MONTHSED 30 JUNE 2016
Hot Features
Premium
Six Months Six Months
Ended Ended
30 June 30 June
2016 2015
Notes US $ US $
Revenue
Other income 489 -
------------- -------------
Total income 489 -
------------- -------------
Expense
Depreciation expense - (10,227)
Employee benefits expense (99,316) (461,263)
Foreign exchange gain/(loss) 5,867 (16,918)
Impairment expense - (39,233)
Professional fees (180,937) (726,477)
Public relations (82,625) (82,438)
Telecommunications expense 3,369 (18,496)
Rent expense - (4,123)
Travel expense (10,017) (98,689)
Other expense (55,922) (129,486)
Fair value movement of convertible
not derivative 5 647,503 -
Finance cost 4 (758,221) (21,712)
------------- -------------
Total expense (530,299) (1,609,062)
------------- -------------
Loss before tax (529,810) (1,609,062)
Income tax benefit - -
------------- -------------
Loss for the year (529,810) (1,609,062)
Other comprehensive income/(loss) - -
------------- -------------
Total comprehensive loss
for the year (529,810) (1,609,062)
------------- -------------
Basic loss per share (0.0049) (0.0150)
Diluted loss per share (0.0049) (0.0150)
Weighted average number of
shares 107,618,497 107,618,497
No dividends were proposed or declared in respect of any of the periods presented above.
The accompanying notes form part of this historical financial information.
Consolidated Statement of Financial Position
AS AT 30 JUNE 2016
As at As at
30 June 31 December
2016 2015
Notes US $ US $
Assets
Cash and cash equivalent 435,877 7,012
-------------- --------------
Total current assets 435,877 7,012
-------------- --------------
Available for sale financial
assets 3 119,151 4,571,051
Total non-current assets 119,151 4,571,051
-------------- --------------
Total assets 555,028 4,578,063
Liabilities
Trade and other payables 324,415 666,747
Interest bearing liabilities 4 891,843 3,395,232
Financial derivative liability 5 - 647,504
-------------- --------------
Total current liabilities 1,216,258 4,709,483
-------------- --------------
Total liabilities 1,216,258 4,709,483
Net liabilities (661,230) (131,420)
-------------- --------------
Shareholders' equity
Share capital 97,059,609 97,059,609
Share-based payments reserve 121,654 121,654
Capital redemption reserve 92,740 92,740
Accumulated losses (97,935,233) (97,405,423)
Total shareholders' deficit (661,230) (131,420)
-------------- --------------
The accompanying notes form part of these financial statements.
Statement of Changes in Equity
for the SIX MONTHSED 30 JUNE 2016
Share-Based Capital
Share Payments Redemption Accumulated
Capital Reserve Reserve Losses Total
US$ US$ US$ US$ US$
Balance at 31
December 2014 97,059,609 121,654 92,174 (71,897,625) 25,375,812
---------- ----------- ----------- ------------ ------------
Other movement - - 566 - 566
Total comprehensive
loss for the
year - - - (25,507,798) (25,507,798)
---------- ----------- ----------- ------------ ------------
Balance at 31
December 2015 97,059,609 121,654 92,740 (97,405,423) (131,420)
---------- ----------- ----------- ------------ ------------
Total comprehensive
loss for the
period - - - (529,810) (529,810)
---------- ----------- ----------- ------------ ------------
Balance at 30
June 2016 97,059,609 121,654 92,740 (97,935,233) (661,230)
---------- ----------- ----------- ------------ ------------
The accompanying notes form part of these financial statements.
Statement of Cash Flows
for the SIX MONTHSED 30 JUNE 2016
Six Months Six Months
Ended 30 Ended 30
June 2016 June 2015
US $ US $
Cash flows from operating activities
Payments to employees and suppliers (1,109,314) (978,692)
------------- -----------
Net cash flows used by operating
activities (1,109,314) (978,692)
------------- -----------
Cash flows from investing activities
Payment for exploration expenditure
in equity investments (552,981) (939,667)
Purchase of property, plant
and equipment - (14,904)
Net proceeds from divestment 5,000,000 -
of subsidiaries
Net cash outflow from investing
activities 4,447,019 (954,571)
------------- -----------
Cash flows from financing activities
Proceeds from convertible notes - 1,000,000
Proceeds from unsecured loan 351,600 251,763
Repayment of convertible notes (3,250,000) -
Net cash flows from financing
activities (2,898,400) 1,251,763
------------- -----------
Net increase/(decrease) in
cash and cash equivalents 439,305 (681,500)
Cash and cash equivalents at
the beginning of the period 7,012 795,463
Effects of foreign exchange
rate changes on the balance
of cash held in foreign currencies (10,440) (42,219)
Cash and cash equivalents at
the end of the year 435,877 71,702
------------- -----------
The accompanying notes from part of these financial statements.
Notes to the Financial statements
1. BASIS OF ACCOUNTING
The financial information has been prepared on an accruals basis and is based on historical costs modified by the revaluation of selected non-current assets, financial assets and financial liabilities for which the fair value basis of accounting has been applied. The financial information is drawn in accordance with the provisions of the International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB) and adopted by the European Union. The financial information is presented in US dollars, rounded to the nearest dollar.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A comprehensive summary of the significant accounting policies is provided for in the Tengri Resources (Tengri or the Company) 2015 Annual Report. A number of the significant accounting policies in the 2015 Annual Report have been repeated below due to their importance on this Half Year Report.
Consolidation
As at 31 December 2015 management concluded that the Company had lost operational control of the Kyrgyz companies operating in the Kyrgyz Republic.
A subsidiary of the Company is an entity for which the Company is exposed, or has rights, to variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. As the Company did not control the Kyrgyz companies at 31 December 2015 these are not considered to be subsidiaries of the Company at that date.
Due to the Kyrgyz companies ceasing to be treated as subsidiaries in the year ended 31 December 2015, the Company has prepared individual company interim financial statements for the period ended 30 June 2016.
As these are the separate financial statements of Tengri, the 31 December 2015 and 30 June 2015 comparatives provide information on the financial position and performance for Tengri only.
In these financial statements, the comparatives for the investments in the Kyrgyz Republic were treated as investments in subsidiaries until the point that control was lost, at which point these were held as available for sale investments.
Going Concern
During the period the Company divested its shareholdings in the Kyrgyz companies for total consideration of US$6.000 million (net consideration of US$4.447 million).
These funds have been utilised by the Company to finalise a settlement with Gold Fields Oregon Holdings BVI Limited (Goldfields) and to repay the TIH Limited (TIH) and Argyle Street Management Limited (ASML) loan notes. The Company also partly repaid the Robust Resources Limited (Robust) loan note.
Further funds will be required to fund existing levels of corporate overheads and to repay the outstanding principal owing to Robust.
These factors indicate that the Company's ability to continue as a going concern is dependent upon the financial support received from its shareholders both in the form of additional funding and deferring the repayment of the outstanding loan balance.
Notwithstanding the above, the Directors are satisfied that it is appropriate to prepare the financial statements on a going concern basis having regard to the following factors:
-- Tengri has significantly reduced expenses as a result of divesting the Kyrgyz companies;
-- Tengri has sufficient cash at the date of signing the financial statements to pay its trade creditors on normal commercial terms; and
-- Tengri and Robust intend to use their best efforts to negotiate and effect a solvent restructuring of the outstanding loan note balance.
Should the Company not be able to manage the inherent uncertainties referred to above, there would be significant uncertainty as to whether the Company would be able to meet its debts as and when they fall due and thus continue as a going concern. The Directors believe that there is a reasonable prospect of a solvent restructuring being agreed and implemented with Robust and therefore it is appropriate to prepare the financial statements on a going concern basis.
If the Company is unable to continue in operational existence for the foreseeable future, adjustments would have to be made to reduce the values of the assets to their recoverable amounts, provide for further liabilities that might arise and reclassify non-current assets as current assets.
3. AVAILABLE FOR SALE FINANCIAL ASSETS
As at As at
30 June 31 December
2016 2015
US$ US$
Investments at fair
value brought forward 4,571,051 39,379
Investments acquired
in the period - 114,825
Investments in subsidiary
companies reclassified - 16,511,152
Disposal of investments (4,451,900) -
Impairment of investments - (12,094,305)
Financial assets at
the end of the year 119,151 4,571,051
Level 1 investments
at the end of the year 4,324 9,025
Level 3 investments
at the end of the year 114,827 4,562,026
During the period the Company entered into a conditional agreement with Socagest to sell its Kyrgyz assets relating to the Taldybulak and Andash projects for US$6.000 million. The sale provided that Tengri use US$0.553 million of the sales proceeds to repay trade creditor balances relating to its subsidiaries that formed part of the sale. The sale was completed on 31 May 2016. At the same time the Company and its majority shareholder Robust entered into an agreement with Goldfields to settle all ongoing and future obligations owed to Goldfields in respect of the Kyrgyz projects for a consideration of US$1.000 million. This allowed the Company to complete a full and clean exit from its activities in the Kyrgyz Republic.
4. INTEREST BEARING LIABILITIES
As at As at
30 June 31 December
2016 2015
US$ US$
Convertible note liability
(i) 750,000 3,241,778
Unsecured loan 141,843 153,454
Interest bearing liabilities 891,843 3,395,232
(i) Convertible note liability
During the period the Company repaid in full the principal amounts outstanding (US$1.000 million) on the convertible unsecured loan notes to funds managed by ASML and TIH. During the period the Company also partly repaid US$2.250 million of the outstanding principal owing to Robust. There is still an outstanding principal balance of US$0.750 million to Robust.
Reconciliation of the convertible note liabilities movement during the period:
As at
30 June
2016
US$
Convertible note liability
at 31 December 2015 3,241,778
Capitalise interest payable
up to repayment 242,247
Unwinding interest on repayment
of convertible note liabilities 515,975
Repayment of convertible
note liability (3,250,000)
Balance at 30 June 2016 750,000
5. FINANCIAL DERIVATIVE LIABILITY
As at As at
30 June 31 December
2016 2015
US$ US$
Financial derivative
associated with convertible
note liability - 647,504
Financial derivative
liability - 647,504
The convertible note liabilities issued by the Company contain an embedded option to convert the debt to ordinary shares. The embedded options have been separated from the host contract and accounted for as a derivative as the economic characteristics and risks of the embedded derivative are not closely related to the economic characteristics and risks of the host contract. The embedded derivatives are measured at fair value with changes in value being recorded in profit or loss.
During the period the ASML and TIH convertible note liabilities were repaid in full. As a result of the repayment the financial derivative recognised at inception for the ASML and TIH convertible notes has been fair valued at $nil with the movement taken to the profit and loss.
During the period the Company also partly repaid US$2.250 million of the outstanding principal owing to Robust. The fair value of the embedded derivative related to the residual Robust convertible note (US$0.750 million) has been assessed at $nil. The Company has determined the fair value to be $nil based on the following:
-- Tengri's closing share price was at reporting date was 1.825p. This compares to the conversion price of 5.000p;
-- The Company has a shareholder deficit at reporting date of US$0.661 million; and
-- At reporting date the Company's ability to continue as a going concern is dependent upon the financial support received from its shareholders both in the form of additional funding and deferring the repayment of the outstanding loan balance.
Reconciliation of the financial derivative liability during the period is below:
As at
30 June
2016
US$
Financial derivative liability
at 31 December 2015 647,504
Fair value movement of convertible
note derivative (647,504)
Balance at 30 June 2016 -
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR UWVNRNSAKUAR
(END) Dow Jones Newswires
September 29, 2016 02:00 ET (06:00 GMT)
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