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Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
W Resources Plc | LSE:WRES | London | Ordinary Share | GB00BKQN5R41 | ORD 0.1P |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 2.65 | 0.00 | 01:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
0 | 0 | N/A | 0 |
TIDMWRES
RNS Number : 2778L
W Resources PLC
30 September 2016
30 September 2016
W Resources Plc
("W" or the "Company")
Half Year Results for the Six Months Ended 30 June 2016
Highlights for H1 2016
La Parrilla, Spain
-- Mine production commenced ahead of schedule in Q3 2016.
-- A package of financing and tungsten off-take arrangements agreed for the start-up of the La Parrilla Fast Track Mine ("FTM") mine.
-- JORC compliant resource increased to 51 million tonnes ("Mt") at 0.096% with an indicated resource up from zero to 36 Mt which equates to 70% of the deposit.
-- Optimised mine plan completed which delivers low strip ratio FTM mine pit. Metallurgical test programme and process engineering and preliminary engineering of the FTM crusher, jig and mill, and concentrator plant were also completed. These resulted in an increase in FTM production by 90% compared to the previous plan, to 2,500 tonnes per annum.
-- Hard rock mining commenced with the first explosive blast covering the first two 10 metre benches in the FTM area in July.
Régua, Portugal
-- Initial Mine development planning completed with an economic initial mine plan.
-- An Environmental Impact Study completed in July and environmental approval for the trial mine is underway.
-- Development is on track for production in 2018.
CAA / Portalegre, Portugal
-- A maiden JORC resource estimate of 3 Mt at 1.04 g/t gold (equating to 111,987 oz in contained gold) was completed in June 2016 on the São Martinho deposit.
-- Drilling commenced in September 2016, to potentially double the current JORC resource estimate.
Financial
-- A package of financing and tungsten off-take arrangements for the start-up of the La Parrilla FTM mine was secured with ICD Alloys and Metals LLP ("ICD Alloys").
-- Forward sale contract facility with ICD Alloys for USD1.2m, $200,000 of this facility has already been paid to W Resources to date.
-- Capital placements totaling GBP850,000, used to progress development at the Régua project and the La Parrilla FTM (including the completion of the FTM mine optimisation plan and FTM plant engineering).
Michael Masterman, Chairman of W Resources, commented: "2016 has so far been a great year of transition for W. We have reached major milestones in Spain and Portugal with initial production at La Parrilla in 2016 and are on track for Régua in 2018, whilst increasing the prospectivity at the other three projects. The La Parrilla mine plan is progressing well, with production commencing in Q3 2016, and in parallel, we are continuing our discussions with regard to financing the mine at asset level and are encouraged by the response to date. These factors, combined with the Full Mine approval, see the FTM construction on-track ahead of the ramp-up to full production in 2017.
"At Régua, metallurgical results to date have been encouraging, and this, combined with process flowsheet updates will enable us to start work on the definition development study."
Enquiries:
W Resources Plc Grant Thornton UK LLP Michael Masterman Colin Aaronson / Jen T: +44 (0) 20 7193 7463 Clarke www.wresources.co.uk / Harrison Clarke T: +44 (0) 20 7383 5100 SI Capital - Broker Gable Communications Andy Thacker / Nick Emerson Justine James T: +44 (0) 1483 413500 T: +44 (0) 20 7193 7463 www.sicapital.co.uk M: +44 (0) 7525 324431
About W
In 2012, W Resources Plc (AIM:WRES) made the successful transition into a tungsten production exploration and development company with projects in Spain and Portugal, following two acquisitions.
Projects include La Parrilla, a tungsten project in Spain and Régua and Tarouca Tungsten projects and the CAA/Portalegre copper-gold project in Portugal.
The Company's deposits and tungsten mine developments offer a low cost, high margin resource development opportunity due to a strong market following for Tungsten, increased trading and a forecast shortage of supply.
The Board is focused to explore further opportunities in the region with a view to building a mid-tier minor metal producer.
W RESOURCES PLC
CHAIRMANS STATEMENT TO THE INTERIM RESULTS
FOR THE SIX MONTHS TO 30 JUNE 2016
W Resources Plc ("W" or the "Company") has made excellent progress in the first half of 2016, towards achieving its target to become a mid-tier mining company. With production commencement at its flagship tungsten development project La Parrilla in Spain in September and good progress being made at the Régua tungsten project in Portugal toward production in 2018, this is a transformational year for the Company.
W has also delivered encouraging results at the CAA / Portalegre gold project in Portugal, fortified with the addition of a new copper exploration licence, post half year end.
La Parrilla, Spain
-- Mine production commenced ahead of schedule in Q3 2016.
-- A package of financing and tungsten off-take arrangements agreed for the start-up of the La Parrilla Fast Track Mine ("FTM") mine.
-- JORC compliant resource increased to 51 million tonnes ("Mt") at 0.096% (February 2016) with an indicated resource up from zero to 36 Mt which equate to 70% of the deposit.
-- Optimised mine plan completed which delivers low strip ratio FTM mine pit. Metallurgical test programme and process engineering and preliminary engineering of the FTM crusher, jig and mill, and concentrator plant were also completed. These resulted in an increase in FTM production by 90% compared to the previous plan, to 2,500 tpa ("tonnes per annum").
-- Hard rock mining commenced with the first explosive blast covering the first two 10 metre benches in the FTM area in July.
Following the completion of a 2,900 metre drilling programme in 2015 in the FTM area, an updated JORC mineral resource estimate was issued in February 2016 by Golder Associates, in which the total resources estimate for La Parrilla increased to 51 Mt at 0.096% WO(3) and 0.108% Sn. This represents a substantial increase of 16% in contained WO(3) and a 7% increase in average WO(3) grade. Importantly, the classification of the resource increased, with an indicated resource of 36 Mt at 0.096% WO(3) which equates to 70% of the total resource estimate, up from zero in the previous 2013 estimate.
The optimised mine plan was completed indicating lower mine strip ratios, lower mining costs and increased tungsten and tin concentrate production rates. W's target is to be mining at a feed rate of 1.95 Mtpa, producing 2,500 tpa of 66% WO(3) concentrate or 90% higher than the previous FTM plan of 0.875 Mtpa / 1,300 tpa at an estimated cost of US$16 million by mid-2017.
On 14 June 2016, W signed the land access agreement for the duration of the mining concessions and land access for the FTM area was paid for one year in advance. All approvals are in place for the FTM mine development.
Post half year end on 26 July 2016, the first mine blast, covering the first two 10 metre benches in the FTM area which opened up directly accessible ore to the mine operation was completed.
A 20-hole RC programme on outcrop areas and lateral extensions not included in the current FTM pit was completed in July 2016. Assays results from the new on-site mine laboratory at La Parrilla reported Hole IRC1-40 has 40m at 0.496% WO(3) and 0.112% Sn while Hole IRC1-41 has reported 11m at 0.126% WO(3) and 0.02% Sn. Visual geological estimation under UV light of the grid of RC holes and mine blast holes has added significant additional definition to the target mining area, and indicates a large lateral extension of the La Parrilla ore body to the South at potentially higher grades, based on site analysis with an XRF.
Also in July, a package of financing and tungsten off-take arrangements for the start-up of the La Parrilla FTM mine was secured with ICD Alloys and Metals LLP ("ICD"). This provides a forward sale contract facility for USD1.2m, USD$200,000 of this facility has already been paid to W Resources to date. In addition, W Resources and ICD have reached a non-binding in principle agreement to provide equipment finance for the crusher at a value of USD2m and evaluate funding for the full FTM project. Equipment finance leases are under discussion with vendors for the crusher, jig and mill, and concentrator and completion of these agreements would provide the majority of FTM plant financing.
W RESOURCES PLC
CHAIRMANS STATEMENT TO THE INTERIM RESULTS
FOR THE SIX MONTHS TO 30 JUNE 2016
Upgrade of the existing concentrator plant is advancing, and production commenced ahead of schedule in Q3 2016 using the existing on-site plant and facilities. Installation of a new crusher with the capacity to process the full 1.95 Mtpa ROM feed is expected to be operational in early Q1 2017 with the remaining plant infrastructure on schedule for installation by mid-2017.
Régua, Portugal
-- Initial Mine development planning completed with an economic initial mine plan.
-- An Environmental Impact Study ("EIS") completed in July and environmental approval for the trial mine is underway.
-- Development is on track for production in 2018
Following the updated JORC compliant mineral resource estimate, issued in October 2015, the total resource tonnage increased by 22% to 5.46 Mt at a grade of 0.28% WO(3) , up from 4.46 Mt. The indicated resource tonnage increased by 76% to 3.76 Mt at a grade of 0.304% WO(3) (2012: 2.14 Mt @ 0.367% WO(3) ). Trial mine development planning advanced and is on-track for completion during Q4 2016.
Metallurgical and plant design work for an initial shallow open-pit mine design, as well as a second phase for a larger scale high-grade underground operation are also in progress. The EIS was completed in July and environmental approval for trial mine is expected by the end of 2016. Development is on track for production in 2018.
The Régua deposit remains open at depth and on all sides, with significant potential to boost the resource growth to the northeast including a 10 m thick tungsten intersection.
CAA / Portalegre, Portugal
-- A maiden JORC resource estimate of 3 Mt at 1.04 g/t gold (equating to 111,987 oz in contained gold) was completed in June 2016 on the São Martinho deposit.
-- Drilling commenced in September 2016, to potentially double the current JORC resource estimate.
-- Management is evaluating farm-in proposals for the CAA / Portalegre gold copper exploration licence.
In October 2015, W Resources' CAA / Portalegre exploration licence increased by 101.7 km(2) to 289.75 km(2), due to the addition of the highly prospective Sa o Martinho gold project by the Portuguese Department for Energy & Geology (DGEG).
In September 2016, W Resources commenced a targeted 1,500 metre diamond core drilling campaign at the São Martinho project to look to upgrade the JORC compliant mineral resource estimate of 3 Mt at 1.04 g/t gold, (includes indicated resources of 0.48 Mt at 1.03 g/t Au) which equates to 111,987 oz in contained gold, which was completed by Golder Associates in June 2016.
The W Board considers it logical and a strategic advantage to farm-out the gold and base metals project to the right partner. The evaluation of this is ongoing.
Tarouca Exploration, Portugal
In 2015, trench sampling at the Tarouca project showed high-grade tungsten results with 15 out of 126 samples exceeding 0.5% WO(3) , including 0.8 m at 11.4% WO(3) (TTR063). Together with the 15 holes drilled in 2014, this confirms an outstanding exploration target in the north eastern area of the licence.
W has consolidated this data and will review timing for further targeted drilling later during 2016.
There is a clear scope to link in with Régua development.
Monforte-Tinoca, Portugal
On 22 July 2016, the Portuguese DGEG granted W the Monforte-Tinoca Portuguese exploration licence, containing the Tinoca and Azeiteiros copper mines.
W RESOURCES PLC
CHAIRMANS STATEMENT TO THE INTERIM RESULTS
FOR THE SIX MONTHS TO 30 JUNE 2016
This exploration licence is located in the Northern Alentejo region, c233 km East of Lisbon and close to W's CAA / Portalegre copper-gold project. It covers 496.19 km(2) and is highly prospective for copper and tungsten exploration and development.
An initial review of the primary copper, tungsten and tin targets will be carried out, with drilling activities planned for late 2017.
Copper Gold Resources Plc
On 8 September 2016, the name of Australian Iron Ore Plc was changed to Copper Gold Resources Plc to reflect the copper, gold and of course tungsten focus of the company. Copper Gold Resources Plc is the 100% shareholder of Iberian Resources Portugal Lda., and holds the five mining assets in Portugal; Régua, CAA / Portalegre, Sa o Martinho, Tarouca and Monforte-Tinoca.
Finance
During the first half of 2016, W completed capital placements totalling GBP850,000. The funds raised were used to progress development at the Régua Project and the La Parrilla FTM (including the completion of the FTM mine optimisation plan and FTM plant engineering).
In June 2016, legacy warrant holders exercised 84,933,333 warrants in the Company at an exercise price of 0.3p, and for which W received gross proceeds of GBP254,800.
The Company recorded an after tax loss GBP332,000 in the first half of 2016, compared to a loss of GBP359,000 in the first half of 2015.
Outlook
W has reached major milestones at Spain and Portugal towards initial production in La Parrilla in 2016 and at Régua in 2018 respectively, whilst increasing the prospectivity at our other projects. The La Parrilla mine plan is progressing well, with production commencing in Q3 2016, and in parallel, we are continuing our discussions with regard to financing the mine at asset level and are encouraged by the response to date. These factors, combined with the Full Mine approval, see the FTM construction on-track ahead of the ramp-up to full production in 2017.
At Régua, metallurgical results to date have been encouraging, and this, combined with process flowsheet updates will enable us to start work on the definition development study.
On behalf of the board, I would like to thank our hardworking teams in Spain and Portugal and our valued shareholders for their continued support and we look forward to prospering with the development work as we head towards the ramp-up of production at La Parrilla in early 2017 following construction of the project this year.
Mr M Masterman
Chairman
W Resources Plc
30 September 2016
W RESOURCES PLC
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHSED 30 JUNE 2016
Unaudited Six Months Unaudited to 30 Six Months Year to June to 30 31 December 2016 June 2015 2015 GBP(000's) GBP(000's) GBP(000's) Continuing Operations Revenue - 79 82 Cost of Sales - (106) (100) Gross Loss - (27) (18) Administrative Expenses (332) (334) (570) Operating Loss (332) (361) (588) Finance Costs - (24) (18) Finance Income - 26 - Loss before Income Tax (332) (359) (606) Income Tax - - ____________- Loss for the Period (332) (359) (606) Other Comprehensive Income Share Based Payment 77 - - Unrealised Foreign Exchange (Loss)/Gain 1,373 (746) (439) Total Comprehensive (Loss)/Profit for the period 1,118 (1,105) (1,045) Basic and Diluted Loss per Share (0.009p) (0.012p) (0.018p)
W RESOURCES PLC
GROUP FINANCIAL POSITION
30 JUNE 2016
Unaudited Unaudited 30 June 30 June 31 December 2016 2015 2015 GBP(000's) GBP(000's) GBP(000's) ASSETS NON-CURRENT ASSETS Intangible Fixed Assets 10,161 6,928 8,250 Tangible Fixed Assets 1,985 1,794 1,809 ------------------- ----------- ------------------- 12,146 8,722 10,059 ------------------- ----------- ------------------- CURRENT ASSETS Trade and Other Receivables 763 531 574 Cash and Cash Equivalents 389 1,464 864 1,152 1,995 1,438 ------------------- ----------- ------------------- TOTAL ASSETS 13,298 10,717 11,497 ------------------- ----------- ------------------- EQUITY SHAREHOLDERS EQUITY Called up share capital 3,997 3,574 3,694 Share premium account 21,202 19,872 20,316 Retained earnings (13,592) (13,090) (13,337) Merger Reserve 909 909 909 Translation Reserve 81 (1,599) (1,292) Share Warrant Reserve - 77 77 ------------------- ----------- ------------------- TOTAL SHAREHOLDERS EQUITY 12,597 9,743 10,367 LIABILITIES CURRENT LIABILITIES Trade and other payables 532 814 986 Financial Liabilities - borrowing interest bearing loans 169 160 144 ------------------- ----------- ------------------- TOTAL LIABILITIES 701 974 1,130 ------------------- ----------- ------------------- TOTAL EQUITY AND LIABILITIES 13,298 10,717 11,497
W RESOURCES PLC
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHSED 30 JUNE 2016
Called Profit Share Merger Translation Share Total Up Share and Loss Premium Reserve Reserve Warrant Equity Capital Account Reserve GBP(000's) GBP(000's) GBP(000's) GBP(000's) GBP(000's) GBP(000's) GBP(000's) Balance at 1 January 2016 3,694 (13,337) 20,316 909 (1,292) 77 10,367 Issue of Share Capital 303 886 1,189 Total Loss for the period (332) (332) Share Based Payment 77 (77) - Unrealised Foreign Exchange Gain 1,373 1,373 Total Comprehensive __________ __________ __________ __________ __________ ______ __________ Income (255) 1,373 - 1,118 __________ __________ __________ __________ __________ ______ __________ Balance at 30 June 3,997 (13,592) 21,202 909 81 - 12,597 2016 (unaudited) __________ __________ __________ __________ __________ ______ __________ Year to 31 December 2015 Balance at 1 January 2015 2,420 (12,731) 17,913 909 (853) 77 7,735 Issue of Share capital 1,274 - 2,403 - - 3,677 Total Comprehensive Income Unrealised Foreign Exchange Loss - (606) - - - - (606) (439) - - - (439) - __________ __________ __________ __________ __________ ______ __________ Balance at 31 December 3,694 (13,337) 20,316 909 (1,292) 77 10,367 2015 __________ __________ __________ __________ __________ ______ __________ 6 Months to 30 June 2015 Balance at 1 January 2015 2,420 (12,731) 17,913 909 (853) 77 7,735 Issue of Share Capital 1,154 - 2,021 - - - 3,175 Share Issue Costs - - (62) - - - (62) Total Comprehensive Income Unrealised Foreign - (359) - - - - (359) Exchange Loss - - - - (746) - (746) __________ ___________ __________ __________ __________ ______ __________ Balance at 30 June 3,574 (13,090) 19,872 909 (1,599) 77 9,743 2015 (unaudited) __________ ___________ __________ __________ __________ ______ __________
W RESOURCES PLC
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHSED 30 JUNE 2016
Unaudited Unaudited Six Months Six Months to to Year to 30 June 30 June 31 December 2016 2015 2015 GBP(000's) GBP(000's) GBP(000's) Cash Flows from Operating Activities Cash Absorbed by Operations (831) (961) _______(967) Interest Paid - - (18) Finance Costs paid - (24) - ------------ ------------- --------------------- (831) (985) (985) Cash Flows from Investing Activities Purchase of intangible fixed assets (857) (593) (1,720) Purchase of tangible fixed assets (1) (1) (15) ___________ ___________ ___________ (858) (594) (1,735) ___________ ___________ ___________ Cash Flows from Financing Activities Loans Received/(Repaid) - (352) (512) Loans Received - - 144 Share Issue 303 1,154 1,274 Share Premium 918 2,020 2,501 Share Issue Costs (32) (62) (99) Interest Bearing Loans 25 - (7) ___________ ___________ ____________ Net Cash for Financing Activities 1,214 2,760 3,301 ___________ ___________ ____________ Increase/(Decrease) in Cash and Cash Equivalents (475) 1,181 581 Cash and Cash Equivalent at Beginning of Period 864 283 283 Cash and Cash Equivalent at end of Period 389 1,464 864 ------------ ------------- --------------------- Reconciliation of Cash Flows from Operations Loss before Tax (255) (359) (606) Depreciation 99 98 184 Exchange Difference on Translation 45 7 32 Share Based Payment (77) - - Finance Costs - 24 18 (188) (230) (372) ------------ ------------- --------------------- (Increase) / Decrease in Trade and Other Receivables (189) 317 (274) (Decrease) in Trade and Other Payables (454) (1,100) (921) (Increase)/Decrease in Stock - 52 (52) ___________ ____________ ____________ Cash Absorbed by Operations (831) (961) (967)
W RESOURCES PLC
NOTES TO THE INTERIM RESULTS
FOR THE SIX MONTHSED 30 JUNE 2016
1. BASIS OF PREPARATION
The financial statements have been prepared under the historical cost convention.
As an AIM listed the Company the company is entitled to exemption from adopting IAS 34 and this exemption has been taken to the effect that segment information is not disclosed.
The financial statements have been prepared using the accounting policies used in the audited Financial Statements for the year ended 31 December 2015, and which will continue to be used for the financial statements for the year ended 31 December 2016.
The interim results are unaudited. The financial statements herein do not amount to full statutory accounts within the meaning of Part 15 of the Companies Act 2006.
These financial statements were approved on 30 September 2016.
Going Concern
The Directors are satisfied that the group has sufficient resources to continue its operations and to meet its commitments in the foreseeable future. The financial statements have therefore been prepared on the going concern basis.
Directors Responsibilities
The Directors are responsible for preparing the Interim Review and the Financial Statements in accordance with applicable law and regulations. The Directors have elected to prepare the Financial Statements in accordance with International Financial Reporting Standards as adapted for use in the European Union.
In preparing these financial statements, the Directors are required to:-
- select suitable accounting policies and apply them consistently
- make judgements and accounting estimates that are reasonable and prudent
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's and the Group's transactions and disclose with reasonable accuracy at anytime the financial position of the Company and the Group.
2. INCOME TAX
There is no income tax arising on the loss on ordinary activities for the six months ended 30 June 2016.
3. LOSS PER ORDINARY SHARE
Basic and Diluted Loss Per Share
Weighted Average Per Share Loss Number Amount (GBP000's) of Shares Pence 6 Months to 30 June 2016 (unaudited) (332) 3,835,238,340 (0.009p) 6 Months to 30 June 2015 (unaudited) (359) 2,977,412,220 (0.012p) Year to 31 December 2015 (Audited) (606) 3,290,067,485 (0.018p)
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR SDUSISFMSEEU
(END) Dow Jones Newswires
September 30, 2016 02:02 ET (06:02 GMT)
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