Share Name Share Symbol Market Type Share ISIN Share Description
Landore Resources Limited LSE:LND London Ordinary Share GB00B06VJ325 ORD NPV
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.01 1.47% 0.69 0.68 0.70 0.69 0.68 0.68 0.00 08:05:55
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Mining 0.0 -2.8 -0.0 - 9

Landore Resources Limited Half-year Report

15/08/2019 7:00am

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Landore Resources (LSE:LND)
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6 Months : From Jun 2019 to Dec 2019

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RNS Number : 0953J

Landore Resources Limited

15 August 2019

15 August 2019

Landore Resources Limited

("Landore Resources" or the "Company")

(AIM Ticker: LND.L)

Interim Results for the Six Months Ended 30 June 2019

Landore Resources Limited (AIM: LND) is pleased to announce its interim results for the six months ended 30 June 2019.

For more information, please contact:

 Landore Resources Limited 
 Bill Humphries, Chief            Tel: 07734 681262 
  Executive Officer 
 Richard Prickett, Finance        Tel: 07775 651421 
 Cenkos Securities plc (Nominated Adviser and Broker) 
 Derrick Lee / Pete               Tel: 0131 220 6939 

Copies of the Interim statement are available on the website,

This announcement contains inside information as defined in Article 7 of the Market Abuse Regulation No 596/2014.





The following discussion of performance, financial condition and future prospects should be read in conjunction with the interim consolidated financial statements of Landore Resources Limited ("Landore Resources" or the "Company") and its subsidiaries (together, "the Group") and notes thereto for the period from 1 January 2019 to 30 June 2019. All amounts are stated in sterling.


Landore Resources is admitted to trading on the AIM market operated by the London Stock Exchange plc, with the trading symbol LND.L. The Company is based in Guernsey in the Channel Islands and its 100 per cent. owned operating subsidiary, Landore Resources Canada Inc. ("Landore Canada"), is engaged in the exploration and development of a portfolio of precious and base metal properties in North America.

Results of Operations

The financial results for the six months to 30 June 2019 show a loss of GBP697,542 (2018: loss GBP1,259,182). These results were in line with expectations. Exploration costs were GBP262,254 (2018: GBP892,124).

On 6 June 2019, the Company completed a placing and subscription to raise, in aggregate, GBP958,688, net of issue costs, through the issue of 157,142,857 new ordinary shares at a price of 0.7 pence per share. After the period end on 3 July 2019, the Company raised a further GBP250,000 at a price of 0.7 pence per share.

The Group has no debt but will need to raise further equity in order to carry out its future exploration and development activities, and also for additional working capital. At present, the Group has sufficient funding in place to complete the current drilling and exploration programme, whilst funding Group working capital requirements up to the end of November 2019.


Landore Canada, is actively engaged in mineral exploration in Eastern Canada. Landore Canada owns or has the mineral rights to four properties in Eastern Canada, a 90.2 per cent. controlling interest in Lamaune Iron Inc. ("Lamaune"), which owns the property adjacent to Junior Lake, and a 30 per cent interest in the West Graham property located in the Sudbury Nickel Belt.

Landore Canada through its 100 per cent owned subsidiary Brancote US, owns or has the mineral rights to a further eight properties for 99 claims in the State of Nevada.

Landore Canada's primary operational focus is on the growth of the BAM East Gold Deposit located on the 100 per cent owned, highly prospective Junior Lake Property, Northwestern Ontario ("Junior Lake").

Full details of the Group's projects, including maps, Canadian National Instrument 43-101 (NI 43-101) resource reports, geophysical surveys etc. can be viewed on the Group's website,

The Junior Lake Property:

The Junior Lake property, 100 per cent. owned by Landore Canada, is located in the province of Ontario, Canada, approximately 235 kilometres north-northeast of Thunder Bay and is host to the recently discovered BAM Gold Deposit, the B4-7 Nickel-Copper-Cobalt-PGEs deposit and the adjacent Alpha PGEs zone. Junior Lake also contains the VW Nickel deposit and numerous other highly prospective mineral occurrences.

BAM Gold Deposit:

During 2018 all of Landore Resources' exploration efforts were targeted at increasing the Junior Lake, BAM Gold resource towards 1,000,000 ounces of gold together with the completion of an initial Preliminary Economic Assessment. Both targets were achieved on time and within budget.

Drilling on the BAM Gold project to date has recorded a success rate of 30.1 ounces gold for every metre drilled with an average discovery cost of US$8.36 per ounce both well within the lower quartile of worldwide gold discovery costs.

Cube Consulting Pty Ltd ("Cube") was engaged by Landore Resources Canada Inc. ("Landore") to conduct a preliminary economic assessment ("PEA") and prepare an Independent Technical Report, in compliance with the requirements of the Canadian National Instruments 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101"), on the BAM Gold Project, in Ontario, Canada.

The Technical report was published on 20 February.

Highlights of the PEA include:

-- The BAM Project Base case considers the economics of exploiting a resource of 12.7 Mt at 1.26 g/t Au containing 515,000 ounces gold (koz Au). An Extended (or upside) case considers a 19.7 Mt resource also at 1.26 g/t Au containing 800 koz;

-- At US$1,300/ounce the Base case generates a post-tax net present value ("NPV") of US$69.2M with an internal rate of return ("IRR") of 22.4%. The Extended case generates a post-tax NPV of US$123.7M and post-tax real IRR of 26.9%; and

-- The BAM Gold Project is highly sensitive to gold price. With a gold price of US$1,430/ounce the above Extended case generates a post-tax NPV of US$175.54M.

The Preliminary Economic Assessment has demonstrated the economic viability of this project as well as its high growth potential. The independent engineers prepared a Stage 1 works programme to advance the Base case scenario to at least the Extended case scenario by infill drilling within the two designed open pits together with an extensive exploration programme including line cutting, geophysics, geochemistry and selective drilling aimed at discovering further gold deposits along the Junior Lake Shear.

Drilling and exploration commenced in June 2019 with the aim to complete a Resource and PEA Update in Q4 2019.

Social and environmental responsibility:

The Group believes that a successful project is best achieved through maintaining close working relationships with First Nations and other local communities. This social ideology is at the forefront of all of the Group's exploration initiatives by establishing and maintaining co-operative relationships with First Nations communities, hiring local personnel and using local contractors and suppliers. Careful attention is given to ensure that all exploration activity is performed in an environmentally responsible manner and abides by all relevant mining and environmental acts. Landore takes a conscientious role in all of its operations, and is aware of its social responsibility and its environmental duty.

15 August 2019




                                                Notes         Group         Group 
                                                         Six months    Six months 
                                                              ended         ended 
                                                            30 June       30 June 
                                                               2019          2018 
                                                                GBP           GBP 
 Exploration costs                               2        (262,254)     (892,124) 
 Administrative expenses                                  (435,350)     (370,700) 
 Operating loss                                           (697,604)   (1,262,824) 
 Finance income                                                  62         3,642 
 Loss before income tax                                   (697,542)   (1,259,182) 
 Income tax expense                                               -             - 
                                                       ------------  ------------ 
 Loss for the period                                      (697,542)   (1,259,182) 
                                                       ============  ============ 
   Other comprehensive (loss)/gain: 
 Exchange difference on translating foreign 
 operations                                                   (333)         2,286 
                                                       ------------  ------------ 
 Other comprehensive (loss)/gain for 
  the year 
  net of tax                                                  (333)         2,286 
                                                       ============  ============ 
 Total comprehensive loss for the period                  (697,875)   (1,256,896) 
                                                       ============  ============ 
 Loss attributable to: 
 Equity holders of the Company                            (697,281)   (1,258,938) 
 Non-controlling interests                                    (261)         (244) 
                                                       ============  ============ 
                                                          (697,542)   (1,259,182) 
   Total comprehensive loss attributable 
 Equity holders of the Company                            (697,614)   (1,256,652) 
 Non-controlling interests                                    (261)         (244) 
                                                       ============  ============ 
                                                          (697,875)   (1,256,896) 
 Loss per share attributable to the 
 equity holders of the Company during 
  the year 
 - basic & diluted                               3       (GBP0.001)    (GBP0.001) 
                                                       ============  ============ 

The Group's operating loss relates to continuing operations.

The notes and accounting policies form part of these interim financial statements.



                                                    Share                   Cumulative          Non- 
                                          Share   options       Retained   translation   controlling 
                                        capital   reserve       earnings       reserve      interest        Total 
                                            GBP       GBP            GBP           GBP           GBP          GBP 
Balance at 
 1 January 2018                      38,322,307   855,453   (38,778,911)     (314,303)       (1,551)       82,995 
Loss for the period                           -         -    (1,258,938)             -         (244)  (1,259,182) 
Other comprehensive gain in the 
 period                                       -         -              -         2,286             -        2,286 
Issue of ordinary share capital       3,150,000         -              -             -             -    3,150,000 
Placing expenses                      (225,291)         -              -             -             -    (225,291) 
Share options lapsed                          -  (54,846)         54,846             -             -            - 
Balance at 
 30 June 2018                        41,247,016   800,607   (39,983,003)     (312,017)       (1,795)    1,750,808 
                                  =============  ========  =============  ============  ============  =========== 
Balance at 
 1 January 2019                      41,247,016   726,453   (41,432,637)     (312,633)       (2,305)      225,894 
Loss for the period                           -         -      (697,281)             -         (261)    (697,542) 
Other comprehensive loss in the 
 period                                       -         -              -         (333)             -        (333) 
Issue of ordinary share capital       1,100,000         -              -             -             -    1,100,000 
Placing expenses                      (141,312)         -              -             -             -    (141,312) 
Share options lapsed                          -   (9,029)          9,029             -             -            - 
Balance at 
 30 June 2019                        42,205,704   717,424   (42,120,889)     (312,966)       (2,566)      486,707 
                                  =============  ========  =============  ============  ============  =========== 

The notes and accounting policies form part of these interim financial statements.


AT 30 JUNE 2019


                           Group                             Group 

As at

                               As at                               As at 

30 June 2019

        30 June 2018       31 December 2018 
                                                                        Notes                      GBP 
                           GBP                                         GBP 
 Non-current assets 
 Property, plant and equipment                      36,456         53,746         43,748 
                                                    36,456         53,746         43,748 
                                             -------------  -------------  ------------- 
 Current assets 
 Trade and other receivables                        48,651        106,014         42,946 
 Cash and cash equivalents                         689,089      2,228,876        277,458 
                                             -------------  -------------  ------------- 
                                                   737,740      2,334,890        320,404 
                                             -------------  -------------  ------------- 
 Total assets                                      774,196      2,388,636        364,152 
                                             -------------  -------------  ------------- 
 Capital and reserves attributable 
  to the Company's equity 
 Share capital                        4         42,205,704     41,247,016     41,247,016 
 Share options reserve                             717,424        800,607        726,453 
 Retained earnings                    5       (42,120,889)   (39,983,003)   (41,432,637) 
 Cumulative translation 
  reserve                                        (312,966)      (312,017)      (312,633) 
                                             -------------  -------------  ------------- 
 Total equity shareholders' 
  funds                                            489,273      1,752,603        228,199 
                                             -------------  -------------  ------------- 
 Non-controlling interests                         (2,566)        (1,795)        (2,305) 
                                             -------------  -------------  ------------- 
 Total equity                                      486,707      1,750,808        225,894 
                                             -------------  -------------  ------------- 
 Current liabilities 
 Trade and other payables                          251,481        603,284        103,787 
 Income tax liabilities                             36,008         34,544         34,471 
                                             -------------  -------------  ------------- 
                                                   287,489        637,828        138,258 
                                             -------------  -------------  ------------- 
 Total liabilities                                 287,489        637,828        138,258 
                                             -------------  -------------  ------------- 
 Total equity and liabilities                      774,196      2,388,636        364,152 
                                             =============  =============  ============= 

The notes and accounting policies form part of these interim financial statements.



                                                             Group   Six months 
                                                        Six months        ended 
                                                             ended      30 June 
                                                      30 June 2019         2018 
                                                               GBP          GBP 
Cash flows from operating activities 
Operating loss                                           (697,604)  (1,262,824) 
Finance income                                                  62        3,642 
Depreciation of tangible fixed assets                        8,925        6,438 
Increase in receivables                                    (4,109)     (57,824) 
Increase in payables                                       142,433      245,498 
                                                     -------------  ----------- 
Net cash outflow from operating activities               (550,293)  (1,065,070) 
Cash flows from financing activities 
Issue of ordinary share capital                          1,000,000    3,150,000 
Issue costs                                               (41,312)    (225,291) 
                                                     -------------  ----------- 
Net cash inflow from financing activities                  958,688    2,924,709 
Net increase in cash and cash equivalents                  408,395    1,859,639 
Cash and cash equivalents at beginning of period           277,458      369,604 
Exchange gain/(loss) on cash and cash equivalents            3,236        (367) 
                                                     -------------  ----------- 
Cash and cash equivalents at end of period                 689,089    2,228,876 
                                                     =============  =========== 

The notes and accounting policies form part of these interim financial statements.



   1          Basis of accounting and accounting policies 

The financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRS") as adopted by the European Union at the time of preparing these financial statements (August 2019). The Directors have elected not to apply IAS34 Interim Financial Reporting.

The financial statements have not been audited and have been prepared on the historical cost basis. The principal accounting policies adopted are consistent with those adopted in the annual accounts to 31 December 2018.

   2          Exploration expenditure and mineral properties 
                                                                                                                                    Net          Accumulated 
                                                                                        1 January           Expenditure            expenditure 


  in period          30 June 2019 
                                                         GBP                               GBP 


 Junior Lake/Lamaune 
  Lake                       21,587,943   255,452   21,843,395 
 Miminiska Lake               1,529,818     1,103    1,530,921 
 Lessard                        701,934     3,352      705,286 
 Frond Lake                      83,297     1,649       84,946 
 Wottam                          61,558         -       61,558 
 Others, including 
  Swole Lake, West Graham 
  and Root Lake                  75,701       698       76,399 
                             24,040,251   262,254   24,302,505 
                            ===========  ========  =========== 

Mineral properties at 30 June 2019 represent accumulated costs to date incurred by Landore Resources Canada Inc., a subsidiary of Landore Resources Limited. On acquisition of Landore Resources Canada Inc. on 5 April 2006 the fair value of those costs incurred to date was considered to be GBPnil. All subsequent expenditure in the period has been charged to the income statement in accordance with the group accounting policy.

   3          Loss per share 

The loss per share is based on the loss for the period and the weighted number of ordinary shares in issue during the period, being 1,067,620,594 (June 2018: 938,015,227).

Diluted loss per share

The potential ordinary shares which arise as a result of the options in issue are not dilutive under the terms of IAS 33 because they would not increase the loss per share. Accordingly, there is no difference between the basic and dilutive loss per share.

   4          Share capital 
                                               30 June                1 January 
                                                    2019                         2019 
                                                    GBP                               GBP 
  1,203,058,636 (December 2018: 1,045,915,779) 
  ordinary shares of nil par value                   42,205,704     41,247,016 
                                                  =============  ============= 

On 6 June 2019, 142,857,143 ordinary shares were issued at a price of GBP0.007 each as part of a share subscription raising GBP1,000,000 before issue costs.

As part of this share issue a further 14,285,714 ordinary shares were issued at a price of GBP0.007 as settlement of adviser fees of GBP100,000.

Additionally, 7,142,857 warrants were issued to an adviser as part of the share placing. The warrants have an exercise price of GBP0.00875 per ordinary share and are exercise for two years from the date of admission of the placing shares to AIM. No value has been ascribed to these warrants as they are deemed not to have been issued in exchange for goods or services and therefore no value is ascribed per IFRS 2.





 At 1 January 2019                 41,247,016 
 Shares issued in the period        1,100,000 
 Share issue costs                  (141,312) 
 At 30 June 2019                   42,205,704 
   5          Retained earnings 


 At 1 January 2019                        (41,432,637) 
 Loss for the period                         (697,281) 
 Fair value of share options lapsed              9,029 
 At 30 June 2019                          (42,120,889) 

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 or visit



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