Final results for the period ended 31 December 2015
2 June 2016
NQ Minerals PLC (ISDX:NQMI)
(“NQ Minerals” or the “Company”)
Final Results for the period ended 31 December 2015
I am delighted to present the maiden results for NQ Minerals plc as a listed company for the period ended 31 December 2015. During the period the Group successfully listed on ISDX raising GBP1m and then conducted additional placings of GBP1 million and GBP0.1 million, which demonstrated confidence in the Group’s growth strategy.
The drilling program commenced and the Board executed its stated strategy on time and under budget. The Board were encouraged by the unexpected commercial grade gold values reported in stockpile samples at White’s Hope and the potential for 3 km of gold mineralisation strike length at Carrington. These are highly encouraging and are to be drilled in further programs. The drilling also identified further targets and the Ukalunda Project has been expanded with application for an adjacent EPM which covers known gold and other mineralisation.
NQ is focused on two exploration projects known as Ukalunda and Square Post, in North Queensland, Australia. These projects are both located in prospective mining districts that form part of the well-known Charters Towers Gold Province, where more than 20 million ounces of gold has been mined.
The Ukalunda tenement lies midway between the Lake Dalrymple/Burdekin Dam and the historic Wirralie gold mine, which produced 1.1 million ounces of gold. The Ukalunda project area contains multiple shows of mineralisation that are the same as other mineralisation shows discovered in mining districts around the world that host major ore bodies. This suggests that a major ore body may be present in this district. Historical wide-ranging exploration has been carried out at the Ukalunda permit area, which discovered some areas of rich mineralisation of gold, silver and a number of associated base metals.
The Square Post tenement lies close to the Flinders Highway, 10 kilometres north north east of Mingela and 50 kilometres south of Townsville. The area is considered to be underexplored due to its rugged terrain. The permit consists of 47 sub-blocks covering an area of around 168km2. Map to Mine have reported that the Square Post tenement is in good standing.
The period to 31 December 2015 has been a successful period for NQ Minerals. Having listed on ISDX and conducted additional placings, we have laid strong foundations for future growth and I believe the outlook is exciting. The costs of the IPO including professional and legal fees amounted to GBP207,000 and the direct costs of the fundraisings amounted to GBP769,000 reflecting the difficult market conditions for small cap fundraisings in general and in the mining sector in particular. However, there seems to be a renewed interest in the sector which will benefit the Group as it progresses with its activities and the costs of the fundraisings have not had an adverse effect on the working capital position of the Group.
Our short-term strategy is aimed at increasing value by targeted exploration and the easiest way to add value is by drilling. The Directors consider that NQ Minerals has a distinct advantage arising from the previous exploration work that has been carried out on the tenements. This has a resulted in a valuable database that will allow the team to target spending to achieve the most efficient exploration and improve the chances of success. The drilling results announced after the period end resulted in additional targets bring identified, an increase in the size of the Ukalunda permit area and in surprise discoveries of gold in the stockpile samples taken. We are awaiting further assay results.
The Directors consider that the remainder of 2016 is likely to see a healthy news flow from both the Ukalunda and Square Post projects as exploration proceeds and any positive results should allow value to be added.
During 2016 we expect approval of the Mining Lease to be obtained which will enable us to process the stockpiles and generate cash flow. The Board is also considering a number of other interesting gold assets that may be available to the Group on favourable terms.
I am optimistic about the Group’s growth potential and we look to the future with significant confidence.
About NQ Minerals plc:
NQ Minerals is an Australian-based exploration and mining company, focusing on projects where past exploration work has established the presence of mineral occurrences. The Company’s management team has decades of experience in the exploration and production of gold, silver and a variety of base metals.
NQ Minerals is focused on two exploration projects known as Ukalunda and Square Post, in North Queensland, Australia. These projects are both located in prospective mining districts that form part of the well- known Charters Towers Gold Province, where more than 20 million ounces of gold has been mined.
NQ Minerals plc
Tel: + 44 (0) 7876 888 011
Alfred Henry Corporate Finance Limited – Corporate Advisor
Nick Michaels and Jon Isaacs
Tel: +44 (0) 207 251 3762
Yellow Jersey PR Limited – Financial PR & IR
Alistair de Kare-Silver, Dominic Barretto and Harriet Jackson
Tel: +44 (0) 7738 076 304
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 31 DECEMBER 2015
16 months Year ended to 31 December 31 December 2015 2014 GBP'000s GBP'000s Continuing operations Revenue - - Gross profit - - Administrative expenses (316) (136) ISDX admission costs (207) Operating loss (523) (136) Finance income 6 - Loss on ordinary activities before taxation (517) (136) Taxation - - Loss for the period (517) (136) Foreign exchange losses (1) 7 Total comprehensive loss for the period attributable to the owners of the Parent (518) (129) Loss per share (pence) 0.40 0.11
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2015
As at As at 31 December 31 December 2015 2014 GBP'000s GBP'000s Assets Non-current assets Investments Deferred exploration and evaluation expenditure 337 118 Property, plant and equipment - 28 337 146 Current assets Trade and other receivables 128 7 Cash and cash equivalents 617 35 745 42 Total assets 1,082 188 ------------ ------------ Equity and liabilities Equity attributable to owners of the Parent Ordinary shares 144 154 Share premium 1,308 - Group reorganisation reserve (6,983) - Translation reserve 6 7 Merger relief reserve 7,171 - Accumulated losses (653) (136) ------------ ------------ Total equity 993 25 ------------ ------------ Liabilities Current liabilities Trade and other payables 89 163 Total liabilities 89 163 ------------ ------------ Total equity and liabilities 1,082 188 ============ ============
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 31 DECEMBER 2015
16 months Year ended to 31 December 31 December 2015 2014 GBP'000s GBP'000s Cash flows from operating activities (518) (40) Cash flows from investing activities Payment for exploration expenditure (248) (43) Proceeds from disposal 17 - of tangible assets Purchases of plant and equipment - (40) ------------ Net cash flows from investing activities (231) (83) Cash flows from financing activities Increase / (decrease) in borrowings - 108 Proceeds on issue of shares 1,331 50 Net cash flows from financing activities 1,331 158 Net increase in cash and cash equivalents 582 35 Cash and cash equivalents 35 - at the brought forward ------------ ------------ Cash and cash equivalents carried forward 617 35 ============ ============
NOTES TO THE PRELIMINARY RESULTS
FOR THE PERIOD ENDED 31 DECEMBER 2015
1 The financial information set out above does not constitute statutory accounts for the purpose of Section 434 of the Companies Act 2006. The financial information has been extracted from the statutory accounts of NQ Minerals Plc and is presented using the same accounting policies, which have not yet been filed with the Registrar of companies, but on which the auditors gave an unqualified report on 1 June 2016.
(MORE TO FOLLOW) Dow Jones Newswires
June 02, 2016 02:00 ET (06:00 GMT)
DJ NQ Minerals PLC Final Results -2-
The preliminary announcement of the results for the period ended 31 December 2015 was approved by the board of directors on 1 June 2016.
2 Earnings per share 2015 2014 Basic loss per share is calculated by dividing the loss attributable to equity shareholders by the weighted average number of ordinary shares in issue during the period: Loss after tax attributable GBP517,000 GBP136,000 to equity holders of the Group Weighted average number of ordinary shares 130,765,481 121,546,000 Basic and diluted loss per share 0.40p 0.11p ------------ ------------
Diluted loss per share
Diluted earnings per share dilute is calculated by adjusting the weighted average number of ordinary shares outstanding to assume conversion of all dilutive potential ordinary shares. Since the Group does not have any dilutive potential ordinary shares the diluted loss per share is the same as the basic loss per share.
The weighted average number of ordinary shares for the period ended 31 December 2015 reflect that of the Company, with the added assumption that the Company has held a share capital of GBP121,545,000 since 1 January 2015.
The weighted average number of ordinary shares for the period ended 31 December 2014 have been restated to GBP121,546,000 to reflect the number of shares included in the share capital of Company before the acquisition of NQ Minerals Pty Ltd.
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