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Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Fluormin | LSE:FLOR | London | Ordinary Share | GB00B5PC8898 | ORD 15P |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 13.50 | 0.00 | 01:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
0 | 0 | N/A | 0 |
TIDMFLOR
RNS Number : 4059A
Fluormin PLC
30 March 2012
Fluormin plc
("Fluormin" or the "Company")
INTERIM REPORT AND ACCOUNTS FOR THE SIX MONTHS ENDED
31 DECEMBER 2011
CHAIRMAN'S STATEMENT
Chairman's Statement
Recent months have proven to be challenging for the Company, with the Company's Witkop mine in South Africa facing operational and cost pressures at a time where acid grade fluorspar prices have declined substantially from the time of the Company's listing on the AIM Market.
Management is actively considering a variety of options to reduce costs and, in particular, an upgrade of ore feed into the Witkop mill through the use of ore sorting technology. Subsequent to the period end, the Company has disposed of its 20% interest in Kenya Fluorspar Company Limited in order to secure additional funding for the Company pending the outcome of ongoing sorting technology trials. These trials, if effective, would lower the operational costs of the Witkop mine by increasing the ore feed head grade to the milling circuit. The economic viability of the mine will be determined by the outcome of these trials.
Financial
For the six months to 31 December 2011, the Group recorded an attributable loss of GBP4,323,000. This compares to an attributable loss of GBP2,796,000 for the year ended 30 June 2011. After accounting for attributable losses, net assets as at 31 December 2011 increased to GBP15,545,000 (from GBP5,976,000 as at 30 June 2011).
The net loss for the six months to 31 December 2011 includes an impairment charge of GBP8,434,000 against the non-current assets of Witkop. The impairment decision reflects the reduction in the fair value of the assets of Witkop in light of the operational challenges at the Witkop mine and the weaker outlook for Fluorspar prices.
As at 31 December 2011, the Company had cash and cash equivalent holdings of GBP8,197,000, trade and other receivables of GBP1,249,000 and inventories of GBP4,172,000 (as compared to GBP1,280,000, GBP89,000 and nil, respectively, as at 30 June 2011). The Company also had loans to associates (Fluorone Trading Limited) of GBP1,253,000 as at 31 December 2011.
Operational
Witkop produced 46,687 wmt of acid grade Fluorspar for the six months ended 31(st) December 2011. 50,936 wmt of acid grade Fluorspar were transported to Durban by rail and exported at average prices in excess of US$429 per dmt.
Substantial efforts were made during the period to overcome several challenges, including water shortages, power outages, unplanned plant maintenance, lower than expected feed grade and higher than expected stripping ratios. Water supply is now steady and Eskom, the South Africa state supplier of electricity, has undertaken efforts to improve the reliability of power supply to the mine.
With respect to feed grade, the Company is undertaking a substantial infill drill programme to reduce grade variability and dilution. With respect to stripping, mining contractors were retained during the period of December to March and have aided the Company in removing substantial quantities of waste and overburden.
Fluorspar Market
The global weakness in growth, accentuated by particular weakness in aluminium consumption, contributed to the failure to deplete inventory after a rapid restocking of inventory in the summer of 2011. As a result, the immediate and mid-term market outlook is negative with substantial inventory reported at Chinese ports.
Fluormin plc
Interim Results for the six months to 31 December 2011
Operational Update
Witkop faced several operational challenges in achieving its targeted name plate production. These have included water shortages, power outages and lower ore grade to the plant, each of which impacted on production. In addition, production was interrupted by its annual shutdown for maintenance.
The outlook for further water shortages and power outages has improved since 31 December 2011. In relation to the lower ore grade to the plant, the Company has embarked on an extensive infill RC drill programme to improve mine planning and grade control.
Whilst plant performance has been satisfactory, plant availability has continued to impact production post 31 December 2011. Recent changes in the management of the engineering and maintenance function are anticipated to improve plant availability.
Operational Highlights for Fluormin to 31 December 2011
Ore Mined 794 kt Waste Mined 1,059 kt Produced tonnes 46,687 wmt Shipped tonnes 50,936 wmt Average price of shipped tonnes* US$429 Cost of sales US$367 Per tonne Product inventory as at December 31 2011 8,859 Mill Feed Grade 8.45% Plant recovery 78.78% ---------------------------------- -----------
Production for January and February averaged 6,176 dmt per month. Reflecting the RC drill programme and improved plant availability production improved to 7,604 dmt in March 2012.
* Note: average prices of shipped tonnage are typically negotiated and settled between three to nine months in advance of shipment and reflect weighted average prices (FOB Durban).
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the six months ended 31 December 2011
Un-audited Un-audited Audited 6 months 6 months 12 months ended 31 ended 31 ended 30 December December June 2011 2010 2011 GBP'000 GBP'000 GBP'000 Continuing Operations Revenue 10,588 - - Exploration expenses - (124) (116) Cost of sales (9,544) - - Net foreign exchange gain 180 - - Profit/(loss) from mining activities 1,224 (124) (116) Depreciation (579) - - Operating profit/(loss) from mining activities 645 (124) (116) Administrative expenses (2,338) (735) (2,614) Impairment Charge (8,434) - - Operating (loss) (10,127) (859) (2,730) Investment income (361) - 61 Share in (loss) of joint venture (164) - (4) Total (loss) for the period from continuing operations (10,652) (859) (2,673) Other comprehensive income - - - Discontinued Operations Profit on disposal of subsidiaries 6,329 - - (Loss) for the period from discontinued operations - - (123) Total comprehensive income/(loss) for the period attributable to the equity holders of the parent (4,323) (859) (2,796) Earnings per share Basic and diluted (loss) per share (pence) (7.98) (8.7)* (15.31) *restated CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 31 December 2011
Un-audited Un-audited Audited 31 December 31December 30 June 2011 2010 2011 GBP'000 GBP'000 GBP'000 Non-current assets Mineral rights 711 - - Property, plant and equipment 6,072 40 38 Investments 2,600 776 776 Share in assets of joint venture 139 - 311 --------------------------- --------------------------- ----------------------- 9,522 816 1,125 Current assets Inventories 4,172 - Trade and other receivables 1,249 3,211 89 Loans to affiliated companies 1,253 - 3,864 Cash and cash equivalents 8,197 3,272 1,280 --------------------------- --------------------------- ----------------------- 14,871 6,483 5,233 Current liabilities Trade and other payables (1,704) (151) (382) --------------------------- --------------------------- ----------------------- (1,704) (151) (382) Non-current liabilities Environmental Rehabilitation (3,912) - - Debentures (3,232) - - --------------------------- --------------------------- ----------------------- (7,144) - - --------------------------- --------------------------- ----------------------- Net current assets 13,167 6,332 4,851 Net assets 15,545 7,148 5,976 Equity Share capital 8,364 2,721 3,805 Shares to be issued - 3,161 - Share premium account 780 10,122 12,199 Share option reserve 582 97 862 Retained reserves 5,819 (8,953) (10,890) --------------------------- --------------------------- ----------------------- Total equity 15,545 7,148 5,976
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the six months ended 31 December 2011
Ordinary Shares Share share to be Preference Share Option Retained capital issued share capital premium Reserve earnings Total GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 Balance at 31 December 2010 2,721 3,161 - 10,122 97 (8,953) 7,148 ================== ========= ======== ============== ========= ================= ========== ================= Ordinary equity subscription 1,084 (3,161) - 2,077 - - - Conversion of preference shares in the period - - - - - - - Total comprehensive loss for the period - - - - - (1,937) (1,937) Share based payments - - - - - - - Transfer from share option reserve - - - - 765 - 765 Balance at 30 June 2011 3,805 - - 12,199 862 (10,890) 5,976 ================== ========= ======== ============== ========= ================= ========== ================= Total comprehensive profit/ (loss) for the period - - - - - (4,323) (4,323) Ordinary equity subscription 4,559 - - 9,613 - - 14,172 Capital reduction - - - (21,032) - 21,032 - Share option charge reversed for options bought out - - - - (280) - (280) Balance at 31 December 2011 8,364 - - 780 582 5,819 15,545 ================== ========= ======== ============== ========= ================= ========== ================= CONSOLIDATED STATEMENT OF CASH FLOWS
For the six months ended 31 December 2011
Un-audited Un-audited Audited 6 months 6 months 12 months ended 31 ended 31 ended 30 December December June 2011 2010 2011 GBP'000 GBP'000 GBP'000 Cash flows from operating activities Operating loss from continued and discontinued operations before interest and tax (10,652) (859) (2,853) Add : Depreciation charges for the period 579 4 7 Add : Share option charge reversed for options bought out (280) 49 814 Add: Share in loss of joint venture 164 - - Add: Impairment Charge 8,434 - - Add: Sale of Subsidiary 6,329 - - Less: Foreign Exchange gain (218) - (127) Operating profit/( loss) before working capital changes 4,356 (806) (2,159) (Increase) in other trade and other receivables (1,160) (5) (45) (Increase) Decrease in loans to affiliated companies (755) - (3,864) Increase in loan taken by subsidiary 1,539 Increase / (Decrease) in trade and other payables 1,322 77 308 Net cash flow from operating activities 5,302 (734) (5,760) Cash flows from investing activities Purchases of plant and equipment - (1) (1) Trade investments made (2,992) (776) (1,079) Investment income received 22 - 175 ----------------------------------------- -------------------- ------------------- ----------------------- Net cash from investing activities (2,970) (777) (905) Cash flows from financing activities Proceeds of issue of share capital 4,585 4,322 7,484 Net cash from financing activities 4,585 4,322 7,484 Net increase in cash and cash equivalents 6,917 2,811 819 Cash and cash equivalents at the beginning of the period 1,280 461 461 Cash and cash equivalents at the end of the period 8,197 3,272 1,280 ----------------------------------------- -------------------- ------------------- ----------------------- NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS 1. Statement of Compliance
The consolidated interim financial information for the six months ended 31 December 2011 has been prepared using accounting policies consistent with International Financial Reporting Standards ("IFRS") as adopted by the European Union applied in accordance with the provisions of the Companies Act 2006.
The financial figures included in this interim report do not contain sufficient information to constitute an interim financial report as that term is defined in IAS 34.
The consolidated interim financial information is un-audited and does not constitute statutory accounts as defined in section 434 of the Companies Act 2006. The statutory accounts for the year ended 30 June 2011, which were prepared under IFRS, have been delivered to the Registrar of Companies. The report of the auditors on those accounts was unqualified, did not contain an emphasis of matter paragraph and did not contain any statement under S498(2) or S498(3) of the Companies Act 2006.
There is no material seasonality associated with the Group's activities.
2. Accounting Policies
The interim financial information has been prepared using accounting policies consistent with IFRS, as set out in the last annual report to 30 June 2011, except as described below:
The International Accounting Standards Board has issued a number of international financial reporting standards which are effective for future accounting periods of the Group. The Directors do not anticipate that the adoption of any of these would have a material impact on the financial statements.
3. Dividends
No dividends were paid or proposed in the 6 months ended 31 December 2011 (for year ended 30 June 2011 - GBP NIL).
4. Operating Segments
The Group's operations are located in Tunisia, South Africa and the United Kingdom. The Group's exploration activities are located in Tunisia, it's operating mine in South Africa and its administration and management is based in the United Kingdom.
The segments presented in this note reflect the separate segments and companies within the Group and is how management information is presented to the Chief Operating Decision Maker.
Segment operating profit/(loss) and profit/(loss) for the period by geography are reconciled to entity operating profit/(loss) and entity profit/(loss) for the period as follows:
Segment Operating Profit/ Profit/(Loss) For Period (Loss) from continued and discontinued operations ---------------- ------------------------------------- ------------------------------------- Un-audited Un-audited Audited Un-audited Un-audited Audited 6 months 6 months 12 months 6 months 6 months 12 months ended 31 ended 31 ended ended 31 ended 31 ended December December 30 June December December 30 June 2011 2010 2011 2011 2010 2011 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 ---------------- ----------- ----------- ----------- ----------- ----------- ----------- Tunisia (24) (181) (350) (24) (181) (350) ---------------- ----------- ----------- ----------- ----------- ----------- ----------- United Kingdom (9,647) (857) (2,850) (3,843) (857) (2,793) ---------------- ----------- ----------- ----------- ----------- ----------- ----------- South Africa (576) - - (576) - - ---------------- ----------- ----------- ----------- ----------- ----------- ----------- Consolidation adjustment 120 179 347 120 179 347 ---------------- ----------- ----------- ----------- ----------- ----------- ----------- Total Entity operating /(loss) and entity(loss) (10,127) (859) (2,853) (4,323) (859) (2,796) ---------------- ----------- ----------- ----------- ----------- ----------- ----------- Segment Total Assets -------------------------- --------------------------------------------------- Un-audited Un-audited Audited 6 months ended 6 months ended 12 months 31 December 31 December ended 30 June 2011 2010 2011 GBP'000 GBP'000 GBP'000 -------------------------- ---------------- ---------------- --------------- Tunisia 25 49 47 -------------------------- ---------------- ---------------- --------------- United Kingdom 11,612 7,331 5,031 -------------------------- ---------------- ---------------- --------------- South Africa 14,758 - - -------------------------- ---------------- ---------------- --------------- Consolidation adjustment (2,002) (81) 1,280 -------------------------- ---------------- ---------------- --------------- Group Assets 24,393 7,299 6,358 -------------------------- ---------------- ---------------- ---------------
In accordance with IFRS 8, Operating Segments, the information presented in this note is the same as that reported to the Chief Operating Decision Maker for the purposes of making decisions about allocating resources to the segment and assessing its performance.
5. Taxation
No liability in respect of income tax has arisen during the period. No deferred tax liability or asset has been recognised in the period.
The deferred tax asset has not been recognised in the accounts as there is not sufficient evidence that there will be taxable profits in the near future against which the deductible temporary differences can be utilised within the meaning of IAS 12.
6. Earnings per ordinary share (basic and diluted)
The calculation of the basic loss per share attributable to the ordinary equity holders of the parent has been calculated on the net loss after tax of GBP4,323,000 (2010 - GBP859,000) using the weighted average number of ordinary shares of 54,170,013 (2010 -9,869,437 restated post share capital consolidation). All share options in issue decrease the loss per share for the period, and as such are deemed anti-dilutive. Therefore the diluted loss per share is the same as the basic loss per share.
7. Ordinary Share Capital
During the period the Company issued 40,000,000 ordinary shares up to August 2011. On 31(st) August 2011 the share capital was consolidated on a 25 to 1 basis. 28,798,000 new ordinary shares were issued up to December 2011. Following these issues the current called up allotted and fully paid ordinary shares of 15 pence each is set out in the table below:
Called up, allotted and fully Shares to paid be Ordinary shares of 15 pence issued Nominal Value each Share Capital 2011 -------------------------------------- -------------- ------------- -------------- Number '000 Number '000 GBP'000 -------------------------------------- -------------- ------------- -------------- Balance at 30 June 2011 634,129 - 3,805 -------------------------------------- -------------- ------------- -------------- Shares issued during the period up to 31(st) August 40,000 - 240 -------------------------------------- -------------- ------------- -------------- Share Capital Consolidation 25-1 (647,164) - - -------------------------------------- -------------- ------------- -------------- Shares issued during the period up to 31(st) December 28,798 - 4,319 -------------------------------------- -------------- ------------- -------------- Balance on 31 December 2011 55,763 - 8,364 -------------------------------------- -------------- ------------- -------------- 8. Share Option Reserve Share Option Reserve ---------------------------------- ---------------------------------- --------------- Un-audited Un-audited Audited 6 months ended 6 months ended 12 months 31 December 31 December ended 30 June 2011 2010 2011 GBP'000 GBP'000 GBP'000 ---------------------------------- ---------------- ---------------- --------------- Balance on 1 July 2011/2010 862 48 48 ---------------------------------- ---------------- ---------------- --------------- Share based payments - share option scheme - 54 814 ---------------------------------- ---------------- ---------------- --------------- Decrease for cancelled share (280) - - options ---------------------------------- ---------------- ---------------- --------------- Reserve transfer for expired - (5) - share options ---------------------------------- ---------------- ---------------- --------------- Balance at 31 December 2011/2010 582 97 862 ---------------------------------- ---------------- ---------------- ---------------
The share option reserve arises as a result of the expense recognised in the income statement for the cost of share-based employee compensation arrangements. The decrease represents the amount previously charged to the Share Option Reserve Account and now no longer required due to options having lapsed either through the expiry of the exercise dates thereof or as a result of the employees leaving the Group.
9. Impairment Charge
The net loss for the six months to 31 December 2011 includes an impairment charge of GBP8,434,000 against the non-current assets of Witkop (excluding restricted cash). The impairment decision reflects the reduction in the fair value of the assets of Witkop in light of the operational challenges at the Witkop mine and the weaker outlook for Fluorspar prices.
The carrying value of the property, plant and equipment and mineral rights before impairment was GBP14,401,000.
10. Investments
On 8 September 2011 Fluormin's aggregate shareholding in Sallies increased to 78.29 % and to 58% of the Sallies debenture in issue. The consideration for this purchase was GBP5.135 million for the shares, satisfied by the issue of 13,125,449 ordinary shares. The consideration for the debentures was GBP2.06 million, satisfied by the issue of 5,338,078 ordinary shares to Firebird. The completion of the Sallies transaction initiated a mandatory offer by the Company to the minority holders of Sallies' shares and debentures and any holder of options to subscribe for Sallies shares.
On 16 December 2011, the mandatory offer for Sallies closed where the Company purchased the remaining 21.71% of Sallies shares for the consideration of ZAR 38,870,813 and 1,734,969 ordinary Fluormin shares.
The investment in Sallies has been subsequently impaired (refer to note 9).
On 8 September, Fluormin acquiring 1,000,000 shares in Kenya Fluorspar Company, equating to a 20% holding, and a USD 500,000 loan. The consideration for this was GBP1.8 million which was satisfied by the issue of 4,643,788 ordinary Shares to Firebird. The loan has subsequently been repaid.
11. Availability of report
Copies of this report are available from the Company's business address at Blackwell House, Guildhall Yard, London, EC2V 5AE.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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