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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Bellzone | LSE:BZM | London | Ordinary Share | JE00B3N0SJ29 | ORD NPV |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 0.25 | 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
TIDMBZM
RNS Number : 6662J
Bellzone Mining PLC
30 June 2017
Bellzone Mining plc
("Bellzone" or "the Company")
Results for the year ended 31 December 2016
Bellzone Mining plc ("Bellzone" or "the Company") (AIM:BZM) announces the audited results of the Company for the year ended 31 December 2016. The Company's Financial Statements will be available shortly on the Company's website at www.bellzone.com.
Results
-- Loss for the year from continuing operations of $8.0 million (2015: $8.6 million)
-- Variable operating costs at 7% of total operating costs compare with 14% calculated on the same basis for 2015.
-- Total assets of $21.7 million (2015: $20.4 million)
-- Net cash of $3.1 million (2015: $0.6 million) and Secured Loans of $17.6 million (2015: $10.7 million)
CHAIRMAN'S STATEMENT
This last year proved every bit as exciting and challenging as we had envisaged and was clearly a valuable re-set point for both Bellzone and the Guinean Government. We accomplished our goals of completing a substantial portion of the ferronickel feasibility study by the end of August 2016 and drastically reducing our operating expenses. We have also continuously engaged with the Ministry of Mines and Geology on an Addendum to update our 2010 Mining Convention and it is highly pleasing that the content of the Addendum has now been provisionally agreed. We await the signed addendum and will update the market in due course. In the meantime, the new Inter-Ministerial Council has been settling in and has been pushing ahead with an ambitious development agenda, including clarifying the way forward with respect to the important Simandou deposit. This will undoubtedly have important short and long term spillover benefits for Bellzone's Kalia iron ore project.
Such collective progress bodes well for the future. However, challenging operating conditions persist for mining juniors and, coupled with the unfortunate delay in finalising our updated legal framework with the Government, we have had to further reduce operating costs and place more employees on longer technical leave (long term part-paid leave allowed under Guinean employment law). This meant also that the timetable to complete the ferronickel technical and economic evaluation work has had to be moved back by at least six months, but with agreement reached on an update to the Mining Convention, we fully expect work to recommence immediately upon ratification of the Addendum document.
Despite the difficulties, the leadership team has managed to achieve strong rapport with the authorities and local communities, as well as truly resilient esprit de corps amongst our employees. This admirable solidarity will be the basis for our success and we must continue to build on our considerable strengths. On behalf of the Board and our shareholders, I would like to express enormous gratitude to our employees and everyone else involved with Bellzone for their commitment and hard work, selfless sacrifices and invaluable goodwill.
We believe, assuming long term operational financing is secured, that the worst is now behind us, including the unprecedented collapse in iron ore prices of 2014-15, and that the way forwards should now become less bumpy, even if there are still economic headwinds. Full-year funding agreement from our major shareholder has once more been obtained for calendar 2017 and this year we will need to borrow even less than in 2015 and 2016. We should be able to complete our ferronickel project evaluation using the funds already raised for that purpose and we are cautiously optimistic that emerging strategic interest in Guinea and the iron ore sector in general can catalyse earlier development of the Kalia deposit.
Bellzone's potential intrinsic value has not changed. Our JORC Reserves and Resources are well-documented and compare very favourably in size and quality relative to other iron ore mines globally, whether in production or not. Kalia is strategically located with good relative accessibility and our path to production is unambiguously short. We are among the longest established mining companies in Guinea and have previously obtained full project financing proposals on the basis of our KP1 BFS in 2013.
Now that negotiations on the Addendum have been concluded, we will be able to focus all of our management and financial resources on executing what we have agreed, as well as on a more comprehensive investor education and outreach programme. We continue to be grateful to our shareholders for standing by us all this while and look forward to beginning to pay back your good faith by unlocking our significant embedded value with concrete progress.
Michael Farrow
Chairman
OPERATIONS AND FINANCIAL REVIEW
Review of Business in the Year
Substantial success was achieved in further reducing operating expenses, with actual expenditure 15.4 per cent. below the US$6.5 million budget for 2016, which itself represented a 35 per cent. reduction from the US$10.0 million budget for 2015.
Bellzone's operating costs which exclude amortisation, depreciation and loss on disposal of fixed assets increased slightly from $5.79 million in 2015 to $5.88 million in 2016, despite incurring $617,000 on feasibility study work for the ferronickel project. Including the additional interest due on the loans to China Sonangol and Hudson, the annual loss narrowed to $8.0 million, a reduction of 7 per cent. over the previous year and no new significant impairments to the balance sheet or significant provisions have been necessary.
The cost savings were achieved mainly as a result of closure of the corporate office in Jersey, relocation of the Company's IT function to Singapore and savings generated from Guinea operations due to extended technical leave.
In anticipation of the feasibility study work required for the ferronickel project, Bellzone raised GBP1.35 million (approximately US$2.0 million) through an equity placement in January 2016 with our major shareholder Hudson Global Group Limited ("Hudson"), which resulted in an increase in Hudson's shareholding from 50.5% to 61.9%. This pre-funding exercise allowed Bellzone to carry out additional geological and metallurgical analyses on the identified nickel resource and complete the first and most important phase of the technical study, with Tenova Minerals Pty Ltd as our main contractor, in four months between May and September 2016. Our preliminary conclusions were announced on 25 August 2016. Up to now, 46 per cent. of the funds raised for feasibility study work have been utilised and the remaining funds are expected to be sufficient to complete the technical work to reach a more definitive conclusion regarding the economic viability of the ferronickel project.
In parallel, management also assessed options to acquire interests in cash-flow producing and potentially earnings accretive assets. One promising asset in South-east Asia in particular was identified and high-level due diligence was carried out, but a transaction did not prove possible to conclude. Management continues to evaluate strategic options both on a proactive and opportunistic basis.
There has been no change in Bellzone's funding situation, with our major shareholder Hudson providing all of our financial support. Our tight budget discipline meant that we needed to draw down only on the last instalment of US$500,000 from the first US$6.5 million secured loan from Hudson (meant to meet Bellzone's budgeted working capital obligations for 2016) at the end of March 2017. At 31 December 2016, no amounts had been drawn down under the second loan facility of US$4.0 million agreed with Hudson to meet 2017 working capital needs. The first draw down under this loan, of US$800,000, was made on 6 June 2017. Bellzone's Board continues actively to explore all alternative financing options as market conditions change and as positive developments in Guinea continue.
Outlook and Strategy
The main operating objective for 2017 will be to complete the technical work related to the ferronickel project in line with Bellzone's new commitments pursuant to the newly-agreed Addendum to the Mining Convention. If the results are positive, the focus will then be on obtaining the required financing to start construction without delay.
At the same time, management intends to work closely and continuously with our broker and other market participants to assess funding options which will be accretive to the Company and which may allow Bellzone to plan ahead to meet our loan obligations to Hudson when they become due in March 2018.
Bellzone's main focus remains the development of our world-class Kalia iron ore deposit. Provided the uplift in the iron ore price between 4Q2016 and 1Q2017 begins to become more sustained and there is strong resurgent investor interest, Bellzone is prepared to move quickly to update our KP1 Bankable Feasibility Study and/or consider other partnerships which may facilitate the earlier exploitation of the Kalia resources.
Accounting Policies
There have been no changes to the accounting policies adopted by the Group in 2016.
Presentation of Financial Statements
The financial statements are presented in accordance with International Financial Reporting Standards as adopted by the European Union ("IFRS") and are presented in US Dollars ("$") with all values being rounded to the nearest thousand ($000) unless otherwise stated.
Dividends
As the Group is in a project-development stage and generates no revenue, no dividends have been declared (2015: nil).
Treasury and Cash Flow Management
At 22 June 2017, funds on hand and available (excluding $3.2m million undrawn from the $4.0 million 2017 working capital loan facility from Hudson) amounted to US$2.4 million.
The Board has a Treasury Committee consisting of the Chairman and the Chief Financial Officer. The structuring of the Company's treasury reduces exposure to currency fluctuations by holding the bulk of the funds in the currency used for budgeted expenditure. The expenditure in Guinean Francs is the only currency which is not managed through this mechanism and is converted on a monthly basis for actual funding requirements.
Julian Cheong
Executive Director
This announcement and the financial information and accompanying notes to the financial statements do not constitute audited financial statements but are derived from audited financial statements. A copy of the Company's full audited results for the year ended 31 December 2016 is contained in its audited financial statements, which will be posted to shareholders together with a notice of the Company's Annual General Meeting to be held in July 2017. The audited financial statements will be made available on the Company's website at www.bellzone.com and should be read in conjunction with the above.
The information contained within this announcement is deemed by the Company to constitute inside information under the Market Abuse Regulation (EU) No. 596/2014.
Enquiries:
Bellzone Mining plc Simon Edwards +44 (0) 7767 492 712 WH Ireland Limited Nominated Adviser and Broker James Joyce / James Bavister +44 (0) 20 7220 1666 Bell Pottinger Financial Public and Investor Relations Victoria Geoghegan / Liz Morley +44 (0) 20 3772 2500
http://www.bellzone.com/
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
At 31 December 2016
2015
Hot Features
Premium
2016 Restated*
Note $'000 $'000
-------------------------------------- ---- --------- ---------
ASSETS
Non-current assets
Property, plant and equipment* 4 1,627 2,760
Other intangible assets 126 194
Mineral properties in the exploration
and evaluation phase 5 16,066 16,066
-------------------------------------- ---- --------- ---------
Total non-current assets 17,819 19,020
-------------------------------------- ---- --------- ---------
Current assets
Cash and cash equivalents 3,138 598
Trade and other receivables 58 134
Inventories 640 640
-------------------------------------- ---- --------- ---------
Total current assets 3,836 1,372
-------------------------------------- ---- --------- ---------
Total assets 21,655 20,392
-------------------------------------- ---- --------- ---------
EQUITY
Issued capital 333,349 331,352
Reserves 5,101 5,101
Retained losses (340,285) (332,326)
-------------------------------------- ---- --------- ---------
Total equity (1,835) 4,127
-------------------------------------- ---- --------- ---------
LIABILITIES
Non-current liabilities
Secured loans 17,603 10,691
-------------------------------------- ---- --------- ---------
Total non-current liabilities 17,603 10,691
-------------------------------------- ---- --------- ---------
Current liabilities
Trade and other payables 5,825 5,513
Provisions 62 61
-------------------------------------- ---- --------- ---------
Total current liabilities 5,887 5,574
-------------------------------------- ---- --------- ---------
Total liabilities 23,490 16,265
-------------------------------------- ---- --------- ---------
Total equity and liabilities 21,655 20,392
-------------------------------------- ---- --------- ---------
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the year ended 31 December 2016
2015
2016 Restated*
Note $'000 $'000
-------------------------------------------------- ---- ------- -------
Continuing operations
Employee benefits expense (2,921) (3,020)
Depreciation and amortisation expenses* 4 (1,201) (1,424)
Administration expenses (745) (894)
Consulting expenses (373) (456)
Exploration expenses (1,214) (844)
Legal expenses (173) (230)
Occupancy expenses (184) (210)
Loss on disposal of furniture, fittings and
equipment - (267)
Travel and accommodation expenses (61) (129)
Net foreign exchange losses (209) (8)
-------------------------------------------------- ---- ------- -------
Results from operating activities (7,081) (7,482)
Finance income 10 4
Finance expense (888) (562)
Impairment of non-current assets - (526)
-------------------------------------------------- ---- ------- -------
Loss before income tax from continuing operations (7,959) (8,566)
Income tax loss - -
-------------------------------------------------- ---- ------- -------
Loss for the year from continuing operations (7,959) (8,566)
Total comprehensive loss for the year, net
of tax:
Attributable to equity holders of the parent
entity (7,959) (8,566)
-------------------------------------------------- ---- ------- -------
Cents Cents
-------------------------------------------------- ---- ------- -------
Loss per share attributable to the ordinary
equity holders of the parent entity:
Basic and diluted loss per share (0.8) (1.2)
-------------------------------------------------- ---- ------- -------
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended 31 December 2016
Issued Reserves Retained Total
Capital Losses Equity
--------------------------------------
$'000 $'000 $'000 $'000
-------------------------------------- ------------- ------------ ------------------- --------------
Balance at 1 January 2016 331,352 5,101 (332,326) 4,127
------------- ------------ ------------------- --------------
Loss for the year - - (7,959) (7,959)
------------- ------------ ------------------- --------------
Total comprehensive loss
for the year - - (7,959) (7,959)
Shares issued, net of costs 1,997 - - 1,997
--------------------------------------- ------------- ------------ ------------------- --------------
Balance at 31 December
2016 333,349 5,101 (340,285) (1,835)
--------------------------------------- ------------- ------------ ------------------- --------------
Balance at 1 January 2015 331,352 5,533 (323,926) 12,959
Adjustment to opening balance
on correction of error - - 166 166
--------------------------------------- ------------- ------------ ------------------- --------------
Balance at 1 January 2015
(*restated) 331,352 5,533 (323,760) 13,125
Loss for the year as reported
in 2015
Adjustment to loss for
the year - - (8,547) (8,547)
on correction of error - - (19) (19)
Total comprehensive income/(loss)
for the year (*restated) - - (8,566) (8,566)
Share-based payment transactions - (432) - (432)
--------------------------------------- ------------------------------------------------ --------------
Balance at 31 December
2015 (*restated) 331,352 5,101 (332,326) 4,127
--------------------------------------- ------------------------------------------------ --------------
CONSOLIDATED CASH FLOW STATEMENT
-----------------
For the year ended 31 December 2016
-------------------------------------------- ------- -------
2016 2015
$'000 $'000
------------------------------------------- ------- -------
Net cash outflow from operating activities (5,406) (7,063)
-------------------------------------------- ------- -------
Cash flows from investing activities Payments for property, plant and equipment - (6) -------------------------------------------- ------- ------- Net cash outflow from investing activities - (6) -------------------------------------------- ------- ------- Cash flows from financing activities Proceeds from issues of shares 2,015 - Net proceeds from secured loan 6,000 6,700 Payments for share issue costs (18) - -------------------------------------------- ------- ------- Net cash inflow from financing activities 7,997 6,700 -------------------------------------------- ------- ------- Net increase/(decrease) in cash and cash equivalents 2,591 (369) -------------------------------------------- ------- ------- Cash and cash equivalents at the beginning of the financial year 598 980 Exchange differences (51) (13) -------------------------------------------- ------- ------- Cash and cash equivalents at end of year 3,138 598 -------------------------------------------- ------- -------
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 31 December 2016
1. REPORTING ENTITY
The consolidated financial statements of Bellzone Mining plc ("the Company") for the year ended 31 December 2016 were authorised for issue in accordance with a resolution of the board of directors on 29 June 2017.
Bellzone Mining plc is a public company listed on AIM of the London Stock Exchange, and incorporated and registered in Jersey, Channel Islands. The Company's registered office is located at Standard Bank House, 47-49 La Motte Street, St Helier, Jersey, JE2 4SZ. The consolidated financial statements of the Company as at and for the year ended 31 December 2016 comprise the Company and its subsidiaries (together referred to as the "Group").
The nature of the principal activities of the Group is described in the Directors' Report. The principal accounting policies adopted in the preparation of these financial statements are set out below. These policies have been consistently applied unless otherwise stated.
2. BASIS OF PREPARATION a. Statement of compliance
The financial statements have been prepared in accordance with International Financial Reporting Standards as adopted for use in the European Union ("IFRS").
b. Adoption of new standards
The Group has adopted new and revised standards and interpretations issued by the International Accounting Standards Board (IASB) and the International Financial Reporting Interpretations Committee (IFRIC) of the IASB and adopted by the European Union that are relevant to its operations and effective for accounting periods beginning on or after 1 January 2016. Although these new standards and amendments apply for the first time in 2016, they do not have a material impact on the consolidated financial statements of the Group.
The Group has not early adopted any other standard, interpretation or amendment that has been issued but is not yet effective.
c. Basis of measurement
The financial statements have been prepared on the historical cost basis except where indicated otherwise in the notes to the financial statements.
d. Functional and presentation currency
The functional currency of the Company and all of its subsidiaries is the United States Dollar ("US Dollar"), which is the currency of the primary economic environment in which the entities operate. All amounts are expressed in US Dollar and all values are rounded to the nearest thousand ($000) unless otherwise stated.
e. Critical accounting estimates and judgements
The preparation of the consolidated financial statements in conformity with IFRS as adopted for use in the European Union requires management to make judgements, estimates and form assumptions that affect the reported amounts of assets, liabilities, expenses and the disclosure of contingent liabilities at the date of the financial statements. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
The Group makes estimates and assumptions concerning the future and the resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the financial results or the financial position reported in future periods are disclosed below.
Mineral properties in the exploration and evaluation phase and exploration expenditure:
Judgement is applied by management in determining when a project has reached a stage at which economically recoverable reserves exist and that development may be sanctioned. The Company has determined that the most appropriate accounting policy for the Kalia asset is to expense all exploration activity (other than the initial licence acquisition costs) as incurred.
Management is also required to make certain judgements and assumptions as to events and circumstances that may occur in the future, in particular the ongoing validity of the mining licence, whether extraction operations are economically viable where reserves have been discovered and whether indications of impairment under IFRS 6 exist. Any such estimates and assumptions may change as new information becomes available.
Property, plant and equipment - recoverable amount:
The calculation of the recoverable amount and useful life of an asset requires significant judgements, estimates and assumptions, including future demand, technological changes, exchange rates, interest rates and others.
The Group assesses each cash generating unit/investment (CGU) annually to determine whether any indication of impairment exists. Where an indicator of impairment exists, a formal estimate of the recoverable amount is made, which is considered to be the higher of the fair value less costs to sell and value in use. Depending on the asset type, these assessments require the use of estimates and assumptions such as future commodity prices, discount rates, future capital requirements, exploration potential and operating performance. Fair value is determined as management's best estimate of the amount that would be obtained from the sale of the asset in an arm's length transaction between knowledgeable and willing parties. Cash flows are discounted by an appropriate discount rate to determine the net present value.
f. Going concern
The nature of the Group's current activities does not provide the Group with production or trading revenues. The Group is currently in advanced discussions with the Government of Guinea to amend its Kalia mining convention to resolve the technical breach and provide the necessary framework for the development of the proposed ferronickel project. The approval process is ongoing at the date of this report. The Directors, having considered the progress made to date and correspondence between the Group and the Guinean Government, expect resolution of this matter will occur later in 2017.
Following the expected amendment to the Kalia mining convention noted above, the Group will continue feasibility study work on its proposed ferronickel project within the Kalia licence area and has set aside sufficient funding to complete this study which is expected to be completed in the first half of 2018. However, our ability to complete this study is also dependent on our majority shareholder Hudson releasing the remaining funds from its US$4.0 million facility, which is at their discretion and likely to be impacted if agreement is not reached on the amendment to the Kalia convention.
Given difficult market conditions, Bellzone remains wholly reliant on its majority shareholder, Hudson. China Sonangol (a related company of Hudson) provided loan financing to the Company from August 2014 to the end of 2015, totalling a principal amount of US$10.2 million. Hudson provided a second loan in the principal amount of US$6.5 million to finance the Company through 2016, with the final drawdown on this loan received in March 2017. The Company has drawn these loans fully, amounting to US$16.7 million and the total principal and accrued interest for both loans was US$18.5 million as at 31 December 2016. A further loan of US$4.0 million was agreed with Hudson but undrawn at the end of 2016, to enable the Company to continue operating through 2017 and the first draw down on this loan in the amount of US$800,000 was completed on 6 June 2017. It is at Hudson's discretion to allow further drawdowns under this facility. Further details are provided in Note 23 of the Financial Statements. Due to successful cost management which has obviated the need to draw down on this third loan earlier, this most recent loan amount is expected to be sufficient to meet Bellzone's working capital needs up to June 2018, subject to assumptions necessarily made in respect of the group's cashflow forecast.
All three loan agreements have the same repayment date for principal and accrued interest of 31 March 2018. If no additional funds are raised before such time to allow Bellzone to discharge its loan obligations, Bellzone, China Sonangol and Hudson will need to reach agreement on a suitable arrangement to defer repayment such that Bellzone will not be in default. No such agreement has been reached at the date of this report.
A positive outcome on the ferronickel feasibility study is uncertain and in any event additional funding is likely to be required to advance the project to a bankable feasibility stage. Furthermore, to commence development, significant funding would be required from external parties which is not committed at the date of this annual report.
The current cash reserves and shareholder loans would be sufficient to see the Group's activities through to the end of June 2018, however drawdowns on the shareholder loan facility are at the discretion of the shareholder, and the repayment date of these shareholder loans made by China Sonangol and Hudson is 31 March 2018. The Group will therefore require drawdowns to be made available, and further financing beyond 31 March 2018 to enable it to continue to meet its liabilities as and when they fall due, if an agreement cannot be reached with China Sonangol and Hudson to extend the repayment date of the loans.
The Group continues to evaluate its strategy and its ability to secure funding that would enable it both to continue operations for the short term and in the long term to develop the Kalia licence area; however, at present there are no committed facilities which would enable Bellzone for a period of 12 months from the date of these financial statements nor provide certainty that the ferronickel feasibility study can be completed. In the event of Hudson withdrawing support, the Directors' view is that additional funding may be sourced from one or more of the following:
-- placement of further securities; -- the sale of assets; and/or
-- funding in exchange for an interest in the Group's projects or future production from the projects.
Whilst the above funding sources are considered available to the Group, there are currently no advanced plans to execute any of these funding strategies.
Hudson has confirmed in a letter to the Directors its current intention to continue making funds available to support the Group's working capital requirements for a period of 12 months from the date of signing the financial statements, on a basis that allows Hudson to change that intention. On this basis and given Hudson's past support, the Directors believe that Hudson will continue to provide on-going funding to Bellzone, as well as consider favourably postponing the repayment date for all of its existing loans.
Taking the above factors into account, the Directors believe it is reasonable to expect that the Group will obtain sufficient funding from one or more of the aforementioned funding sources and have continued to adopt the going concern basis of accounting in preparing the Consolidated Financial Statements. However, the Directors wish to highlight that there is a material uncertainty in relation to the continuing support from Hudson, in particular the availability of committed short-term funding, and reaching an agreement for the deferral of the repayment date for its loan facilities.
As the Directors have concluded that there is a material uncertainty that may cast significant doubt on the ability of Bellzone to continue as a going concern beyond a period of 12 months from the date of this report, there is a risk that the Group and Company may be unable to realise their assets and discharge their liabilities in the normal course of business. The financial statements do not include the adjustments that would result if the company was unable to continue as a going concern.
3. SEGMENT INFORMATION
The Group determines and presents operating segments based on the information that is internally provided to the Group's chief operating decision maker. The chief operating decision maker has been identified as the Board of Directors. The Board currently considers the project level (previously the internal reporting was done on a consolidated level) and has identified four reportable segments:
-- Kalia segment represents the exploration activities undertaken at the Kalia Mine;
-- Forécariah segment represents the 50:50 joint venture between Bellzone and China International Fund Ltd (CIF) to fully fund exploration and development of a mine and infrastructure;
-- Sadeka segment represents exploration activities for nickel and copper in south-east Guinea; and
-- Technical & Support Services represents funding, shared services, treasury and technical support delivered from Jersey, Singapore and the Conakry office in Guinea.
Transfer prices between operating segments are made on an arm's length basis.
Kalia Technical
&
Forécariah Sadeka Support Total Eliminations Consolidated
Services
$'000 $'000 $'000 $'000 $'000 $'000 $'000
-------------------------- ------------ ------------------ ------- -------------- --------------- -------------- -----------------
31 December 2016 Revenue
Inter-segment- - - 1,234 1,234 (1,234) -
-------------------------- ------------ ------------------ ------- -------------- --------------- -------------- -----------------
Results
Segment loss (5,957) (5,957) - (314) (1,614) (7,885) (74) (7,959)
-------------------------- ------------ ------------------ ------- -------------- --------------- -------------- -----------------
Total (5,957) - (314) (1,614) (7,885) (74) (7,959)
-------------------------- ------------ ------------------ ------- -------------- --------------- -------------- -----------------
31 December 2015 Revenue
Inter-segment- - - 933 933 (933) -
-------------------------- ------------ ------------------ ------- -------------- --------------- -------------- -----------------
Results
Segment loss(
Prior year adjustment (6,157)
- (348) (2,079) (8,584) 563 (8,021)
(19) - - - (19) - (19)
Impairment- (526) - - (526) - (526)
-------------------------- ------------ ------------------ ------- -------------- --------------- -------------- -----------------
Total (Restated) (6,176) (526) (348) (2,079) (9,129) 563 (8,566)
-------------------------- ------------ ------------------ ------- -------------- --------------- -------------- -----------------
Segment assets
At 31 December 2016 5,481 - 55 66,744 72,280 (50,625) 21,655
-------------------------- ------------ ------------------ ------- -------------- --------------- -------------- -----------------
At 31 December 2015
(restated) 6,407 - 217 59,200 65,824 (45,432) 20,392
-------------------------- ------------ ------------------ ------- -------------- --------------- -------------- -----------------
Non-current assets - geographical
information
--------- ------------------------------------------------- -------------------------------------------------------- -----------------
2016 2015
$'000 $'000
--------- ------------------------------------------------- -------------------------------------------------------- -----------------
Guinea 17,693 18,760
Jersey - 260
Singapore 126 -
----------------------------------------------------------- -------------------------------------------------------- -----------------
17,819 19,020
----------------------------------------------------------- -------------------------------------------------------- -----------------
4. PROPERTY, PLANT AND EQUIPMENT
Freehold Plant Furniture, Fittings Motor Work
and and
Buildings Equipment Equipment Vehicles in Progress Total
$'000 $'000 $'000 $'000 $'000 $'000
--------------------------- ---------- ---------- -------------------- --------- ------------ --------
At 31 December
2016
Opening net book
value
- 1 January 2016
- restated 969 1,366 111 281 33 2,760
---------- ---------- -------------------- --------- ------------ --------
Depreciation charges -64 -740 -108 -221 - -1,133
--------------------------- ---------- ---------- -------------------- --------- ------------ --------
Closing net book
value
- 31 December 2016 905 626 3 60 33 1,627
--------------------------- ---------- ---------- -------------------- --------- ------------ --------
Cost 1,387 12,142 857 2,445 33 16,864
--------------------------- ---------- ---------- -------------------- --------- ------------ --------
Accumulated depreciation -482 -11,516 -854 -2,385 - -15,237
--------------------------- ---------- ---------- -------------------- --------- ------------ --------
Net book value
at 31 December
2015 905 626 3 60 33 1,627
--------------------------- ---------- ---------- -------------------- --------- ------------ --------
Opening net book
value as on 1 January
2015 - As previously
reported 898 1,823 815 640 33 4,209
--------------------------- ---------- ---------- -------------------- --------- ------------ --------
Adjustment on correction
of error - Opening
net book value
as on 1 January
2015 169 - - - - 169
--------------------------- ---------- ---------- -------------------- --------- ------------ --------
- Restated 1,067 1,823 815 640 33 4,378
--------------------------- ---------- ---------- -------------------- --------- ------------ --------
Additions/(write-offs) - 6 - - - 6
--------------------------- ---------- ---------- -------------------- --------- ------------ --------
Disposals - - -267 - - -267
--------------------------- ---------- ---------- -------------------- --------- ------------ --------
Depreciation charges
- Restated -98 -463 -437 -359 - -1,357
--------------------------- ---------- ---------- -------------------- --------- ------------ --------
Closing net book
value as on 31
December 2015
- Restated 969 1,366 111 281 33 2,760
--------------------------- ---------- ---------- -------------------- --------- ------------ --------
Cost* 1,387 12,142 857 2,445 33 16,864
--------------------------- ---------- ---------- -------------------- --------- ------------ --------
Accumulated depreciation* -565 -10,776 -746 -2,164 - -14,251
--------------------------- ---------- ---------- -------------------- --------- ------------ --------
Adjustment on correction
of error 147 - - - - 147
--------------------------- ---------- ---------- -------------------- --------- ------------ --------
- Restated -418 -10,776 -746 -2,164 - -14,104
--------------------------- ---------- ---------- -------------------- --------- ------------ --------
Net book value 969 1,366 111 281 33 2,760
Accumulated depreciation
* Certain amounts have been reclassified within cost and accumulated depreciation to more accurately reflect the nature of these assets. These reclassifications at 31 December 2015 have resulted in the following revisions to net book value at that date: Freehold Buildings decreased by $20,000, Plant and Equipment increased by $159,000, Furniture Fixtures and Equipment decreased by $187,000, and Motor Vehicles increased by $48,000. There is no impact on the total value or on consolidated statement of comprehensive income as a result of the reclassification.
5. MINERAL PROPERTIES IN THE EXPLORATION AND EVALUATION
PHASE
-------------------------------------------------------- --------------------------------
2016 2015
$'000 $'000
-------------------------------------------------------- ----------------- -------------
Reconciliation of carrying value
Opening net book value 16,066 16,066
Additions - -
-------------------------------------------------------- ----------------- -------------
Closing net book value 16,066 16,066
-------------------------------------------------------- ----------------- -------------
At Balance sheet date
Cost 16,066 16,066
Amortisation - -
-------------------------------------------------------- ----------------- -------------
Net book value 16,066 16,066
-------------------------------------------------------- ----------------- -------------
The above asset values relate to the mineral properties in the exploration and evaluation phase and are based on the cost of acquiring 100% of the companies holding the Kalia, Faranah and Sadeka exploration permits.
In addition to the costs of acquiring the exploration permits through the acquisition of the subsidiaries, the statutory fees paid on the issue of the Mining Concessions (Permits) for the Kalia and Faranah areas are included.
6. EVENTS OCCURRING AFTER THE REPORTING PERIOD
On 21 December 2015, Bellzone entered into a US$6.5 million loan agreement with Hudson Global and, on 23 December 2016, Bellzone had entered into a second loan agreement for a loan amount of US$4.0 million, interest bearing at LIBOR + 5% to be accrued monthly and repayable together with the principal sum on 31 March 2018. Bellzone made the final draw down of funds under the first of these loans in the amount of US$0.5 million on 29 March 2017 and, subsequently, the first draw down of the new loan in the amount if US$0.8 million on 6 June 2017.
Bellzone has continued to negotiate with the Government of Guinea an amendment agreement (the 'Addendum') in relation to the Kalia Mining Convention signed and ratified in 2010. On 8 June 2017, Bellzone announced that it had reached a provisional agreement with the Government of Guinea, including approval for the proposed Ferronickel project at Kalia. As at the date of publication of this annual report, the Addendum is going through the official approval process in Guinea. No date has been set for the signature by the relevant Guinean Ministers of State (including the Minister of Mines & Geology) or the final ratification of the Addendum by the National Assembly of Guinea.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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(END) Dow Jones Newswires
June 30, 2017 02:01 ET (06:01 GMT)
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