Namibian Resources PLC Final Results (6509W)

TIDMNBR

RNS Number : 6509W

Namibian Resources PLC

20 August 2015

20 August 2015

NAMIBIAN RESOURCES PLC

RESULTS FOR THE YEAR ENDED 28 FEBRUARY 2015

Namibian Resources plc ("the Company") is pleased to present its results for the year ended 28 February 2015. A copy of the annual report and accounts is expected to be posted to shareholders on 24 August 2015 and will also be available on the Company's website, http://www.namibianresources.com/

Together with the annual report and accounts, the Company is posting to shareholders a notice of its annual general meeting which will take place at 11.00am on Monday 21 September 2015 at Craven House, West Street, Farnham, Surrey, GU9 7EN.

Enquiries:

 
 Brian Moritz,                               Tel: [phone] 
  Chairman, Namibian Resources Plc 
 Colin Aaronson/Jen Clarke                   Tel: [phone] 
  Grant Thornton UK LLP, Nominated Adviser 
 

CHAIRMAN'S STATEMENT

Operations

Production at the Group's Sonnberg diamond mine remains suspended, and is not expected to re-commence. In previous periods the value of the mining lease was fully impaired and the mobile and fixed plant was impaired down to its estimated realisable value, which is still considered to be reasonable. The ownership of such plant has now been transferred from Sonnberg to the Company.

The agreement under which Sonnberg previously mined is open to differing interpretations regarding rehabilitation costs. Sonnberg has contributed a percentage of the value of diamonds mined to a fund held by Namdeb, but the adequacy of this fund is uncertain. The directors therefore provided a further amount of GBP70,000 to cover the potential liability, and no change to this provision has been made in the current year, notwithstanding the fall in the value of the Namibian Dollar, the currency in which the liability is denominated.

Financial

During the period the Group reports a consolidated loss from operating activities, before and after tax, of GBP120,416 (2014 loss: GBP531,758), shown after the impairment charge of GBPnil (2014: GBP185,887). After adjusting for exchange differences, the total comprehensive loss for the period was GBP113,183 (2014 loss: GBP682,908). During the year, the Company raised GBP146,600, before expenses, by a placing of new shares. Separate financing will be sought for new projects, which is likely to be by way of both equity and project finance.

Since the end of the year, the Company capitalised GBP645,600 of interest free loans advanced by directors and former directors and their associates by the issue of 13,465,263 new ordinary shares of 1p each at 4.75p per share. Following this the Company is free of material amounts of debt.

Future prospects

Apart from assessing opportunities to realise value from the plant and equipment transferred from Sonnberg, the Company is currently involved in evaluating and negotiating potential acquisitions, including an oil production company in the Republic of Congo. Much of the last year has been spent in negotiating for the acquisition of a diamond mine in South Africa, but this has been discontinued as the required mining finance could not be secured. The evaluation of a copper project in South Africa has also been discontinued.

At the forthcoming AGM shareholders will be given the opportunity to consider what steps, if any, should be taken to deal with the Company's substantial loss of capital as required by S656 of the Companies Act 2006. As the current share price is materially below par a reduction in the par value will be required to facilitate a transaction, and the requisite resolutions put to shareholders in due course.

B M Moritz (Chairman)

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 28 FEBRUARY 2015

 
                                                                                           2015         2014 
                                                                                            GBP          GBP 
 Continuing operations 
  Revenue                                                                                     -            - 
 Cost of sales                                                                                -            - 
                                                                                     ----------   ---------- 
 Gross loss                                                                                   -            - 
 
 Administrative expenses                                                              (120,022)    (529,752) 
                                                                                     ----------   ---------- 
 Loss from operating activities                                                       (120,022)    (529,752) 
 
 Finance 
  costs                                                                                   (394)      (2,006) 
 
 Loss before tax                                                                      (120,416)    (531,758) 
 
 Taxation                                                                                     -            - 
                                                                                     ----------   ---------- 
 Loss for the year from operating 
  activities                                                                          (120,416)    (531,758) 
 
 Exchange translation on foreign operations                                               7,233    (154,150) 
 
 Total comprehensive expense for the 
  year                                                                                (113,183)    (685,908) 
                                                                                     ==========   ========== 
 
 Loss per ordinary share (pence) 
 Basic and diluted                                                                       (0.16)       (0.86) 
                                                                                     ==========   ========== 
 
 
 

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 28 FEBRUARY 2015

 
                                                  2015          2014 
                                                   GBP           GBP 
 Non-current assets 
 Property, plant and equipment                 257,888       260,264 
 Intangible assets                                   -             - 
                                               257,888       260,264 
                                          ------------  ------------ 
 
 Current assets 
 Trade and other receivables                    51,896        49,048 
 Cash and cash equivalents                       9,395         7,689 
                                          ------------  ------------ 
                                                61,291        56,737 
                                          ------------  ------------ 
 
 Total assets                                  319,179       317,001 
                                          ============  ============ 
 
 Equity 
 Share capital                               4,328,355     4,211,235 
 Share premium                               1,050,197     1,027,317 
 Currency translation reserve                  158,756       158,491 
 Retained deficit                          (6,008,315)   (5,894,867) 
                                          ------------  ------------ 
                                             (471,007)     (497,824) 
 
 Current liabilities 
 Trade and other payables                      720,186       744,825 
 Provisions                                     70,000        70,000 
                                          ------------  ------------ 
                                               790,186       814,825 
                                          ------------  ------------ 
 
 Total equity and liabilities                  319,179       317,001 
                                          ============  ============ 
 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 28 FEBRUARY 2015

 
 
                                                           Currency 
                                   Share        Share   translation       Retained 
                                 capital      premium       reserve        deficit        Total 
                                     GBP          GBP           GBP            GBP          GBP 
 
 Balance at 28 
  February 
  2013                         4,211,235    1,027,317       306,355    (5,356,823)      188,084 
                              ----------   ----------   -----------   ------------   ---------- 
 
 
 Loss for the 
  financial 
  year                                 -            -             -      (531,758)    (531,758) 
 Foreign exchange difference           -            -     (147,864)        (6,286)    (154,150) 
                              ----------   ----------   -----------   ------------   ---------- 
 Total comprehensive expense 
  for the year                         -            -     (147,864)      (538,044)    (685,908) 
 
 Balance at 28 
  February 
  2014                         4,211,235    1,027,317       158,491    (5,894,867)    (497,824) 
                              ----------   ----------   -----------   ------------   ---------- 
 
 Loss for the 
  financial 
  year                                 -            -             -      (120,416)    (120,416) 
 Foreign exchange difference           -            -         7,233              -        7,233 
                              ----------   ----------   -----------   ------------   ---------- 
 Total comprehensive expense 
  for the year                         -            -         7,233      (120,416)    (113,183) 
                              ----------   ----------   -----------   ------------   ---------- 
 
 Issue of ordinary 
  shares                         117,120       29,280             -              -      146,400 
 Issue costs                           -      (6,400)             -              -      (6,400) 

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August 20, 2015 08:53 ET (12:53 GMT)