GCM Resources PLC Final Results (8905W)

TIDMGCM

RNS Number : 8905W

GCM Resources PLC

17 November 2017

17 November 2017

GCM Resources plc

("GCM" or the "Company")

(AIM:GCM)

Final Results for the year ended 30 June 2017

GCM Resources plc (AIM:GCM), a resource exploration and development company, is pleased to report its preliminary results for the year ended 30 June 2017.

Highlights:

-- GCM is reshaping the Phulbari Coal and Power Project into a holistic power solution, to be in line with the objectives of the Government of Bangladesh;

-- Signed a Memorandum of Understanding with China Gezhouba Group International Engineering Co Limited ("CGGC") with respect to a proposed 2,000MW mine-mouth power plant in November 2016;

-- Received a completed technical pre-feasibility study (PFS) on the proposed power plant from CGGC in July 2017;

   --      Discussions with CGGC continue  to agree a joint development framework agreement; 

-- GCM recorded a loss of GBP1.0 million for the year ended 30 June 2017 (2016: GBP1.0 million)

The Annual Report and Accounts for the year ended 30 June 2017 will be posted on the Company's website today (www.gcmplc.com) and will shortly be mailed to shareholders. Copies will also be available on request from the Company.

In the Chairman's Statement Datuk Michael Tang PJN, Executive Chairman, stated:

"Progress is being made to reposition the Company's mining project into a holistic power solution, in line with the objectives of the Government of Bangladesh (Government), which is to significantly expand power generation in order to support long term economic growth and social development in the country.

"In November 2016 we were very pleased to begin our strategic relationship with China Gezhouba Group International Engineering Co Limited (CGGC) by signing a Memorandum of Understanding (MOU). The MOU enabled the parties to collaborate in a new proposal to construct an initial 2,000MW mine-mouth power plant in conjunction with the Phulbari coal mine.

"CGGC is an internationally recognised engineering company with infrastructure projects across the world. CGGC's businesses cover the design, construction, investment and operation in power, water conservancy, highways, railways, bridges, municipal works, airports, ports, waterways, industrial and civil buildings, as well as real estate and coal mining.

"At the beginning of 2017 CGGC began a technical pre-feasibility study (PFS) on the proposed power plant with the assistance of GCM. This was successfully completed and announced on 14 July 2017.

"We are honoured to be working with the high calibre CGGC team and much encouraged by their interest in further developing the relationship. The parties are currently in discussions to agree a joint development framework agreement which will set out the respective roles and responsibilities, and enable the parties to move forward with the Project.

"By combining the planned coal mine with the proposed 2,000MW mine-mouth power plant in conjunction with CGGC, we are reshaping the Phulbari Coal and Power Project to become an integrated power proposition which we anticipate will be attractive to the Government.

"An additional 2,000MW to the Bangladesh energy grid would make a substantial contribution to the country and assist the Government in meeting its long-term aim of having 57,000 MW of installed power generating capacity by 2041 from a diversified energy sector. The Project could support up to a further 4,000MW at the mine-mouth and/or at other strategic sites within Bangladesh.

"Continuing its focus on minimising costs and conserving cash, the Group recorded a loss of GBP1.0 million for the year ended 30 June 2017 (2016: GBP1.0 million). Capitalised Project related expenditure for the year ended 30 June 2017 amounted to GBP1.8 million (2016: GBP0.7 million), which included non-cash expenditure of GBP1.3 million.

"Looking forward, we recognise the significant challenges ahead in developing the combined power plant and mine proposal, and achieving the necessary approvals from the Government, the timing of which remains in the hands of the authorities. We are determined to continue adding shareholder value, by pursuing the development of the Project to the benefit of shareholders, Bangladesh and the local communities."

The Income Statement, Statement of Comprehensive Income, Statement of Changes in Equity, Balance Sheet and Cash Flow are presented on the following pages:

Consolidated Statement of Comprehensive Income

For year ended 30 June

 
                                 2017      2016 
                               GBP000    GBP000 
Operating expenses 
Exploration and evaluation 
 costs                           (53)      (40) 
Share based payments                -     (271) 
Administrative expenses         (654)     (663) 
 
Operating loss                  (707)     (974) 
 
Finance revenue                     -         - 
Finance costs                   (299)      (69) 
 
Loss before tax               (1,006)   (1,043) 
 
Taxation                            -         - 
 
Loss for the year             (1,006)   (1,043) 
 
Other comprehensive income          -         - 
 
Total comprehensive income 
 for the year                 (1,006)   (1,043) 
                              -------  -------- 
 
Loss per share 
Basic (pence per share)        (1.6p)    (1.7p) 
Diluted (pence per share)      (1.6p)    (1.7p) 
 

Consolidated Statement of Changes in Equity

For year ended 30 June

 
                         Share     Share         Share  Convertible  Accumulated    Total 
                       capital   premium         based         loan       losses 
                                 account      payments       equity 
                                           not settled    component 
                        GBP000    GBP000        GBP000       GBP000       GBP000   GBP000 
 
Balance at 
 1 July 2015             6,286    45,286           598           40     (14,580)   37,630 
 
Total comprehensive 
 loss                        -         -             -            -      (1,043)  (1,043) 
Drawdown of 
 convertible 
 loan                        -         -             -          129            -      129 
Share based 
 payments                    -         -            11            -          271      282 
 
Balance at 
 30 June 2016            6,286    45,286           609          169     (15,352)   36,998 
 
Total comprehensive 
 loss                        -         -             -            -      (1,006)  (1,006) 
Share issuances          1,529       879             -            -            -    2,408 
Share based 
 payments                    -         -             9            -            -        9 
Transfer of 
 convertible 
 loan equity 
 component on 
 share issue                 -         -             -        (169)          169        - 
 
Balance at 
 30 June 2017            7,815    46,165           618            -     (16,189)   38,409 
                      --------  --------  ------------  -----------  -----------  ------- 
 

Consolidated Balance Sheet

As at 30 June

 
                                     2017       2016 
                                   GBP000     GBP000 
 
Current assets 
Cash and cash equivalents             180        194 
Other receivables                      52        136 
 
Total current assets                  232        330 
 
Non-current assets 
Property, plant and equipment          27         29 
Intangible assets                  40,179     38,387 
 
Total non-current assets           40,206     38,416 
 
Total assets                       40,438     38,746 
                                 --------  --------- 
 
Current liabilities 
Payables                          (1,028)      (684) 
Borrowings                        (1,001)    (1,064) 
 
Total current liabilities         (2,029)    (1,748) 
 
Total liabilities                 (2,029)    (1,748) 
                                 --------  --------- 
 
 
Net assets                         38,409     36,998 
                                 --------  --------- 
 
Equity 
Share capital                       7,815      6,286 
Share premium account              46,165     45,286 
Other reserves                        618        778 
Accumulated losses               (16,189)   (15,352) 
 
Total equity                       38,409     36,998 
                                 --------  --------- 
 

Consolidated Cash Flow Statement

For year ended 30 June

 
                                        2017      2016 
                                      GBP000    GBP000 
 
Cash flows from/(used 
 in) operating activities 
(Loss) before tax                    (1,006)   (1,043) 
 
Adjusted for: 
 Finance costs                           299        69 
 Share based payments                      -       271 
 Other non-cash expenses                  50         - 
 
                                       (657)     (703) 
Movements in working capital: 
 (Increase)/decrease in operating 
  receivables                            (6)        91 
 Increase/(decrease) in operating 
  payables                               280       223 
 
Cash used in operations                (383)     (389) 
 
 
Net cash used in operating 
 activities                            (383)     (389) 
 
 
Cash flows from/(used 
 in) investing activities 
Payments for property, 
 plant and equipment                     (4)       (2) 
Payments for intangible 
 assets                                (477)     (603) 
 
Net cash generated from/(used 
 in) investing activities              (481)     (605) 
 
 
Cash flows from/(used 
 in) financing activities 
Proceeds from borrowing                  850     1,019 
 
Net cash from financing 
 activities                              850     1,019 
 
 
Total increase in cash 
 and cash equivalents                   (14)        25 
 
 
Cash and cash equivalents 
 at the start of the year                194       169 
 
Cash and cash equivalents 
 at the end of the year                  180       194 

                                     -------  -------- 
 

The audited financial information for the years ended 30 June 2017 and 30 June 2016 contained in this document does not constitute statutory accounts as defined in the Companies Act 2006. The comparative financial information is based on the statutory accounts for the financial year ended 30 June 2016. Those accounts, upon which the auditors issued an unqualified opinion with emphasis of matter paragraphs, have been delivered to the Registrar of Companies. The financial information for the year ended 30 June 2017 has been extracted from the financial statements of GCM Resources plc which will be delivered to the Registrar of Companies in due course. The auditors have issued an unqualified opinion with an emphasis of matter paragraph on the Group's statutory financial statements for the year ended 30 June 2017. The emphasis of matter paragraph is in relation to going concern. The preliminary announcement was approved by the Board of Directors on 17 November 2017.

This announcement contains inside information as defined in Article 7 of the EU Market Abuse Regulation No 596/2014 and has been announced in accordance with the Company's obligations under Article 17 of that Regulation.

For further information:

 
 
   GCM Resources plc                Northland Capital Partners 
   James Hobson                     Ltd 
   Finance Director                 Nominated Adviser and 
   [phone]             Broker 
                                    Tom Price 
                                    Matthew Johnson 
                                    [phone] 
 
 GCM Resources plc 
 Tel: [phone] 
 [e-mail]; www.gcmplc.com 
 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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November 17, 2017 12:05 ET (17:05 GMT)