Share Name Share Symbol Market Type Share ISIN Share Description
Chesterfield Resources Plc LSE:CHF London Ordinary Share GB00BF2F1X78 ORD 0.1P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.0% 2.85 2.50 3.20 2.85 2.85 2.85 0.00 00:00:00
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Mining 0.0 -0.7 -1.5 - 2

Chesterfield Resources PLC Half-year Report

30/09/2019 7:00am

UK Regulatory (RNS & others)


Chesterfield Resources (LSE:CHF)
Historical Stock Chart

3 Months : From Sep 2019 to Dec 2019

Click Here for more Chesterfield Resources Charts.

TIDMCHF

RNS Number : 0084O

Chesterfield Resources PLC

30 September 2019

Chesterfield Resources PLC / EPIC: CHF / Market: LSE / Sector: Mining

30 September 2019

CHESTERFIELD RESOURCES PLC

("Chesterfield" or the "Company")

Interim Results

Chesterfield Resources PLC, the LSE listed exploration company with mineral exploration projects in Cyprus, is pleased to announce its interim results for the six months ended 30 June 2019.

Highlights

-- Hired a senior technical team led by Mike Parker to accelerate exploration and data analysis.

   --      Built-up by far the largest license package in Cyprus totalling 236 km(2) . 

-- Chesterfield is undertaking the first modern large scale and systematic exploration programme in Cyprus, using modern techniques unavailable to historic explorers.

-- Two new targets announced; the Evlim target located between two abandoned historic mine areas and KinValley, at the northern end of the 15km long Kinousa fault structure.

-- Further targets have now been identified meaning the drill programme will be pushed back slightly and expanded.

   --      New website and presentation recently launched. 

Chairman Statement

2019 has been a very active year for your company as we look forward to a new drill campaign to search for copper and gold. At the end of 2018, we had just completed our preliminary drill campaign in our Troodos West licence area in Cyprus. As good assay results continued arriving at the start of this year, we took the decision to significantly expand our exploration activities in Cyprus.

We hired a new senior operations and country manager, Mike Parker. Mike joined us after a 20-year career at First Quantum Mining ("First Quantum") where he was a key exploration geologist in making two major discoveries. He was later Country Manager for First Quantum in the DRC and then Peru. We also took the decision to greatly expand our licence area in Cyprus by filing applications for a further 183 km of mineral exploration permits in the foothills of the Troodos mountains. This more than tripled the company's potential field of exploration coverage and made us by far the dominant exploration player in Cyprus.

We then set about a systematic programme to explore this expanded licence package with the aim of reducing our search areas to a series of specific targets, which we would then rank and allocate resources accordingly. Drilling is costly and it is the company's strategy to explore each target using a "toolbox" of different techniques to determine if they justify the cost of drilling. This may take more time but is much more cost-efficient for shareholders and more likely to lead to discoveries.

To roll-out this programme, the company hired three bright and enthusiastic graduates from the Camborne School of Mines to build up its field team in country. We have developed a good relationship with Camborne , who this year paid us a visit on-site with its third-year students, and we now have two of its masters students working with us in Cyprus as interns. In addition, we have hired three talented Cypriot geologists who have joined the team on a consultancy basis to complete a strong presence in the field.

At this point, I would like to draw your attention to our new company website, which was launched recently. It contains a number of short video clips in which Mike and his team present various aspects of the project and targets for our next drill campaign. The site is entirely up to date with a new presentation, media interviews, details of our enlarged land package, as well as plenty of information on our exploration programme and the techniques we are employing. For those interested to learn more about Cyprus, there are sections on its mining history and geology.

In March 2019 we commissioned a remote sensing satellite survey using data from the Sentinel 2 satellite platform owned the European Space Agency. The survey not only provides us with high-resolution photography but also uses specially calibrated sensors in the non-visible spectrum to analyse alterations in rock structures from space. This allowed the team to analyse a first sweep of all our exploration territory for fault structures far more quickly than walking the ground. Chesterfield engaged Fathom Geophysics of Ohio, U.S.A, a company specialising in this field, to interpret the data. The results were then collated with the Company's existing geological databases. As a result, numerous new targets are now under investigation.

For the new drill campaign, we are focussing our efforts in the Troodos West area of our licence package, where we have built up our most complete data sets of archival data, geochemistry and geophysics. We have conducted extensive soil sampling and mapping of our target areas and also sifted through a wealth of historical mining and exploration data stored in the Government archives. In July, we successfully completed an Induced Polarisation (IP) survey, a geophysics technique which involves transmitting a current into the subsurface using electrodes. In Cyprus, the survey responses may typically be up to around 200m underground. The survey focussed on one of our prime targets, Evlim, and consisted of a series of test lines approximately 1km in length and 125 meters apart, and covered an area of approximately 1km sq.

The results of the IP survey were encouraging at Evlim and indicated a potential extension of mineralisation in a downfaulted block. Combined with archival data (including a drill hole from 1983 that returned 0.84% Cu over 11m, from 45m) this has enabled the identification of a drill target likely to host both copper and gold mineralisation in lavas, which will be drill tested in the next campaign.

In July we announced another target named KinValley, located at the northern end of the 15km long Kinousa Fault structure where multiple historical mines occur along two parallel trends. Chesterfield has carried out mapping, sampling, geophysics and drilling to build a high-quality database over the course of the past year.

This previously untested target is interpreted to be a shallowly buried VMS deposit formed in the hanging wall of the fault and is preserved in favourable stratigraphy. KinValley is within the same trend as a cluster of historically mined VMS deposits. An extensive geochemical survey (100m line space, 50m sample interval) was carried out, and a total of 128 soil samples were taken resulting in a coincident copper anomaly. We are excited about the Kinousa Fault, and believe further targets are to be found in its hanging wall.

Our original plan for this campaign was to focus on drilling these two good quality targets and probably a third as a back-up. However, in the process of analysing various adjacent areas in Troodos West, four new target areas have been identified and are now undergoing more detailed scrutiny. It is highly encouraging that our viable target list has built up in this way. This has given us pause for thought. We have decided to push back the drilling by a couple of months to assess these new targets, some of which have now presented themselves priority targets. As a consequence, we may well increase the size of our next drill programme.

The management of our land position in Cyprus is a dynamic one. As such land areas, either permitted or in application, will become surplus to requirement and will be released. Conversely, our exploration analysis is pointing to other areas of interest that are not currently part of our land package, and so new permits will be applied for. On balance, we will expect to gradually reduce our land package to focus on those areas we are most interested in. This is a common-sense approach which saves on unnecessary costs.

Chesterfield is an ambitious company. The technical team are excited about the upcoming drill programme, while we are analysing a number of other opportunities in Cyprus including the processing of waste dumps. There are potential deals that have been presented to us in Cyprus by third parties. We also have a stated broader ambition to use Cyprus as a jumping-off point to grow through joint ventures, or mergers, with other ventures elsewhere.

The team is working hard and I look forward to bringing you very good news flow over the coming months.

Financials

As is to be expected with an exploration company, for the six-month period ended 30 June 2019 the Group is reporting a pre-tax loss of GBP303,704 (six months ended 30 June 2018: GBP349,668). The Group's net cash balance as at 30 June 2018 was GBP1,282,523 (six months ended 30 June 2018: GBP920,776).

Responsibility Statement

We confirm that to the best of our knowledge:

-- the interim financial statements have been prepared in accordance with International Accounting Standards 34, Interim Financial Reporting, as adopted by the EU;

-- give a true and fair view of the assets, liabilities, financial position and loss of the Company;

-- the Interim report includes a fair review of the information required by DTR 4.2.7R of the Disclosure and Transparency Rules, being an indication of important events that have occurred during the first six months of the financial year and their impact on the set of interim financial statements; and a description of the principal risks and uncertainties for the remaining six months of the year; and

-- The Interim report includes a fair review of the information required by DTR 4.2.8R of the Disclosure and Transparency Rules, being the information required on related party transactions.

The interim report was approved by the Board of Directors and the above responsibility statement was signed on its behalf by:

Martin French

Executive Chairman

30 September 2019

Market Abuse Regulation (MAR) Disclosure

Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.

For further information please visit www.chesterfieldresourcesplc.com or contact:

 
  Chesterfield Resources    Martin French, Executive    Tel: +44 (0) 7901 
   plc                       Chairman                    552277 
   Brandon Hill Capital     Jonathan Evans              Tel: +44 20 3463 5000 
                          --------------------------  ----------------------- 
 

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

 
                                                                    6 months           6 months 
                                                                  to 30 June         to 30 June 
                                                              2019 Unaudited     2018 Unaudited 
                                                    Notes                GBP                GBP 
------------------------------------------------  -------  -----------------  ----------------- 
  Continuing operations 
  Revenue                                                                  -                  - 
  Administration expenses                                          (303,704)          (349,668) 
  Operating loss                                                   (303,704)          (349,668) 
------------------------------------------------  -------  -----------------  ----------------- 
  Income tax                                                               -                  - 
------------------------------------------------  -------  -----------------  ----------------- 
  Loss for the period                                              (303,704)          (349,668) 
------------------------------------------------  -------  -----------------  ----------------- 
  Other comprehensive income 
  Items that may be reclassified to profit 
   or loss 
  Currency translation differences                                   (1,285)                  - 
  Total comprehensive income for the period                        (304,989)          (349,668) 
------------------------------------------------  -------  -----------------  ----------------- 
  Total comprehensive income for the period 
   attributable to equity holders                                  (304,989)          (349,668) 
  Earnings per share from continuing operations 
   attributable to the equity owners of the 
   parent 
------------------------------------------------  -------  -----------------  ----------------- 
  Basic and diluted (pence per share)                 5             (0.492)p           (1.223)p 
------------------------------------------------  -------  -----------------  ----------------- 
 

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

 
                                                             As at            As at              As at 
                                                           30 June      31 December            30 June 
                                                    2019 Unaudited     2018 Audited     2018 Unaudited 
                                          Notes                GBP              GBP                GBP 
------------------------------------  ---------  -----------------  ---------------  ----------------- 
  Non-Current Assets 
  Property, plant and equipment                             21,263           13,891                  - 
  Intangible assets                        6             1,473,940        1,156,429                  - 
------------------------------------  ---------  -----------------  ---------------  ----------------- 
                                                         1,495,203        1,170,320                  - 
------------------------------------  ---------  -----------------  ---------------  ----------------- 
  Current Assets 
  Trade and other receivables                               69,129           77,067             83,089 
  Cash and cash equivalents                              1,282,523        1,885,726            920,776 
------------------------------------  ---------  -----------------  ---------------  ----------------- 
                                                         1,351,652        1,962,793          1,003,865 
------------------------------------  ---------  -----------------  ---------------  ----------------- 
  Total Assets                                           2,846,855        3,133,113          1,003,865 
------------------------------------  ---------  -----------------  ---------------  ----------------- 
 
  Non-Current Liabilities 
  Deferred tax liabilities                               (119,747)        (127,450)                  - 
------------------------------------  ---------  -----------------  ---------------  ----------------- 
  Current Liabilities 
  Trade and other payables                               (115,572)         (89,138)          (175,712) 
 
  Total Liabilities                                      (235,319)        (216,588)          (175,712) 
------------------------------------  ---------  -----------------  ---------------  ----------------- 
  Net Assets                                             2,611,536        2,916,525            828,153 
------------------------------------  ---------  -----------------  ---------------  ----------------- 
  Capital and Reserves Attributable 
   to 
   Equity Holders of the Company 
  Share capital                                            159,933          159,933            126,600 
  Share premium                                          3,534,597        3,534,597          1,157,873 
  Other reserves                                            21,089           22,374              4,360 
  Retained losses                                      (1,104,083)        (800,379)          (460,680) 
------------------------------------  ---------  -----------------  ---------------  ----------------- 
  Total Equity                                           2,611,536        2,916,525            828,153 
------------------------------------  ---------  -----------------  ---------------  ----------------- 
 

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY

 
                                                            Attributable to owners 
                                                             of the Parent 
                                     -------  ----------  ---------------------------------------  ----------- 
                                                   Share        Share        Other       Retained        Total 
                                                 capital      premium     reserves         losses       equity 
                                       Note          GBP          GBP          GBP            GBP          GBP 
                                              ----------                                           ----------- 
  Balance as at 1 January 2018                   126,600    1,157,873        4,360      (111,012)    1,177,821 
--------------------------------------------  ----------  -----------  -----------  -------------  ----------- 
  Loss for the period                                  -            -            -      (349,668)    (349,668) 
--------------------------------------------  ----------  -----------  -----------  -------------  ----------- 
  Other comprehensive income 
   for the year 
  Items that may be subsequently 
   reclassified to profit or 
   loss 
  Currency translation differences                     -            -            -              -            - 
  Total comprehensive income 
   for the year                                        -            -            -      (349,668)    (349,668) 
  Balance as at 30 June 2018                     126,600    1,157,873        4,360      (460,680)      828,153 
--------------------------------------------  ----------  -----------  -----------  -------------  ----------- 
 
  Balance as at 1 January 2019                   159,933    3,534,597       22,374      (800,379)    2,916,525 
--------------------------------------------  ----------  -----------  -----------  -------------  ----------- 
  Loss for the period                                  -            -            -      (303,704)    (303,704) 
--------------------------------------------  ----------  -----------  -----------  -------------  ----------- 
  Other comprehensive income 
   for the year 
  Items that may be subsequently 
   reclassified to profit or 
   loss 
-----------------------------------  -------  ----------  -----------  -----------  -------------  ----------- 
  Currency translation differences                     -            -      (1,285)              -      (1,285) 
--------------------------------------------  ----------  -----------  -----------  -------------  ----------- 
  Total comprehensive income 
   for the year                                        -            -      (1,285)      (303,704)    (304,989) 
--------------------------------------------  ----------  -----------  -----------  -------------  ----------- 
  Total transactions with owners,                      -            -            -              -            - 
   recognised in equity 
-----------------------------------  -------  ----------  -----------  -----------  -------------  ----------- 
  Balance as at 30 June 2019                     159,933    3,534,597       21,089    (1,104,083)    2,611,536 
--------------------------------------------  ----------  -----------  -----------  -------------  ----------- 
 
 
 

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

 
                                                                   6 months           6 months 
                                                                 to 30 June         to 30 June 
                                                             2019 Unaudited     2018 Unaudited 
                                                   Notes                GBP                GBP 
--------------------------------------------   ---------  -----------------  ----------------- 
  Cash flows from operating activities 
  Loss before taxation                                            (303,704)          (349,668) 
  Adjustments for: 
  Depreciation                                                        4,657                  - 
  Increase/(decrease) in trade and other 
   receivables                                                        7,940           (11,122) 
  Increase in trade and other payables                               18,729             97,142 
  Foreign exchange                                                      178                  - 
  Net cash used in operations                                     (272,200)          (263,648) 
---------------------------------------------  ---------  -----------------  ----------------- 
  Cash flows from investing activities 
  Purchase of property, plant & equipment                          (12,061)                  - 
  Exploration and evaluation activities             6             (318,942)                  - 
---------------------------------------------  ---------  -----------------  ----------------- 
  Net cash generated from investing 
   activities                                                     (331,003)                  - 
--------------------------------------------   ---------  -----------------  ----------------- 
 
  Net cash generated from financing 
   activities                                                             -                  - 
--------------------------------------------   ---------  -----------------  ----------------- 
  Net decrease in cash and cash equivalents                       (603,203)          (263,648) 
  Cash and cash equivalents at beginning 
   of period                                                      1,885,726          1,184,424 
  Cash and cash equivalents at end of 
   period                                                         1,282,523            920,776 
---------------------------------------------  ---------  -----------------  ----------------- 
 

NOTES TO THE INTERIM FINANCIAL STATEMENTS

1. General Information

Chesterfield Resources plc is a minerals company exploring primarily for copper and gold in Cyprus and listed on the Standard segment of the Main Market of the London Stock Exchange.

The Company is domiciled in the United Kingdom and incorporated and registered in England and Wales, with registration number 10545738. The Company's registered office is 7-9 Swallow Street, London, England, W1B 4DE.

2. Basis of Preparation

The Company acquired the entire share capital of CRC Chesterfield Resources (Cyprus) Limited on 3 July 2018 which the Directors have treated as an asset acquisition as explained in note 10 to the financial statements for the year ended 31 December 2018. The Directors are required to and have prepared consolidated condensed financial statements which include the results of the acquired subsidiary from the date that the acquisition took place. As the acquisition was not considered to meet the definition of a business combination under IFRS 3, the Group Financial Statements are prepared as though the Company has acquired an asset and as such, the comparative financial information for the period ended 30 June 2018 is that of the Company.

The condensed interim financial statements have been prepared in accordance with IAS 34 "Interim Financial Statements" as adopted by the European Union and the Disclosure and Transparency Rules of the UK Financial Conduct Authority . The condensed interim financial statements should be read in conjunction with the annual financial statements for the period ended 31 December 2018, which have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union.

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.

Statutory financial statements for the period ended 31 December 2018 were approved by the Board of Directors on 29 April 2019 and delivered to the Registrar of Companies. The report of the auditors on those financial statements was unqualified. The condensed interim financial statements are unaudited and have not been reviewed by the Company's auditor.

Going concern

The Directors, having made appropriate enquiries, consider that adequate resources exist for the Company to continue in operational existence for the foreseeable future and that, therefore, it is appropriate to adopt the going concern basis in preparing the condensed interim financial statements for the period ended 30 June 2019.

Risks and uncertainties

The Board continuously assesses and monitors the key risks of the business. The key risks that could affect the Company's medium term performance and the factors that mitigate those risks have not substantially changed from those set out in the Company's 2018 Annual Report and Financial Statements, a copy of which is available on the Company's website: www.chesterfieldresourcesplc.com. The key financial risks are liquidity risk, credit risk, interest rate risk and fair value estimation.

Critical accounting estimates

The preparation of condensed interim financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the end of the reporting period. Significant items subject to such estimates are set out in Note 2 of the Company's 2018 Annual Report and Financial Statements. The nature and amounts of such estimates have not changed significantly during the interim period.

   3.   Accounting Policies 

Except as described below, the same accounting policies, presentation and methods of computation have been followed in these condensed interim financial statements as were applied in the preparation of the Company's annual financial statements for the period ended 31 December 2018.

3.1 Changes in accounting policy and disclosures

(a) New and amended standards mandatory for the first time for the financial year beginning 1 January 2019

The following new IFRS standards and/or amendments to IFRS standards are mandatory for the first time for the Company:

 
  Standard                                                                       Effective date 
---------------------  ------------------------------------------------------  ---------------- 
 
 IFRS 16                Leases                                                  1 Januray 2019 
  IAS 28 (Amendments)    Long term interests in associates and joint ventures    1 January 2019 
 Annual Improvements    2015 - 2017 Cycle                                       1 January 2019 
 IAS 19 (Amendments)    Employee Benefits                                       1 January 2019 
  IFRIC 23               Uncertainty over income tax treatments                  1 January 2019 
 

The Directors believe that the adoption of these standards has not had a material impact on the financial statements other than changes to disclosures.

(b) New standards, amendments and Interpretations in issue but not yet effective or not yet endorsed and not early adopted

The standards and interpretations that are issued, but not yet effective, up to the date of issuance of the condensed interim financial statements are listed below. The Company intends to adopt these standards, if applicable when they become effective.

 
  Standard                                                                     Effective date 
--------------------  -----------------------------------------------------  ---------------- 
 
 IFRS 3 (Amendments)   Business Combinations                                  1 January 2020* 
 IAS 1 (Amendments)    Presentation of Financial Statements                   1 January 2020* 
 IAS 8 (Amendments)    Accounting policies, Changes in Accounting Estimates   1 January 2020* 
 

*Not yet endorsed by the EU.

The Company is evaluating the impact of the new and amended standards above. The Directors believe that these new and amended standards are not expected to have a material impact on the Company's results or shareholders' funds.

   4.   Dividends 

No dividend has been declared or paid by the Company during the six months ended 30 June 2019 (six months ended 30 June 2018: GBPnil).

   5.   Loss per Share 

The calculation of loss per share is based on a retained loss of GBP303,704 for the six months ended 30 June 2019 (six months ended 30 June 2018: GBP349,668) and the weighted average number of shares in issue in the period ended 30 June 2019 of 61,933,334 (six months ended 30 June 2018: 28,600,000).

No diluted earnings per share is presented for the six months ended 30 June 2019 or six months ended 30 June 2018 as the effect on the exercise of share options would be to decrease the loss per share.

6. Intangible fixed assets

The movement in capitalised exploration and evaluation costs during the period was as follows:

 
  Exploration & Evaluation at Cost and Net Book Value           GBP 
------------------------------------------------------  ----------- 
  Balance as at 1 January 2019                            1,156,429 
  Additions                                                 318,942 
  Exchange rate variances                                   (1,431) 
  As at 30 June 2019                                      1,473,940 
------------------------------------------------------  ----------- 
 

7. Events after the balance sheet date

There have been no events after the reporting date of material nature.

8. Approval of interim financial statements

The Condensed interim financial statements were approved by the Board of Directors on 27 September 2019.

**ENDS**

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

END

IR BXGDCRSDBGCR

(END) Dow Jones Newswires

September 30, 2019 02:00 ET (06:00 GMT)

1 Year Chesterfield Resources Chart

1 Year Chesterfield Resources Chart

1 Month Chesterfield Resources Chart

1 Month Chesterfield Resources Chart
Your Recent History
LSE
CHF
Chesterfie..
Register now to watch these stocks streaming on the ADVFN Monitor.

Monitor lets you view up to 110 of your favourite stocks at once and is completely free to use.

By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions

P: V:gb D:20191212 13:50:49