TIDMBKY
RNS Number : 2490H
Berkeley Resources Limited
12 March 2015
BERKELEY RESOURCES LIMITED
INTERIM FINANCIAL REPORT
FOR THE HALF YEAR ENDED 31 DECEMBER 2014
DIRECTORS' REPORT
The Board of Directors of Berkeley Resources Limited present
their report on the consolidated entity of Berkeley Resources
Limited ('the Company' or 'Berkeley') and the entities it
controlled during the half year ended 31 December 2014
('Consolidated Entity' or 'Group').
DIRECTORS
The names of the Directors of Berkeley in office during the half
year and until the date of this report are:
Mr Ian Middlemas
Dr James Ross
Mr Robert Behets
Unless otherwise disclosed, Directors were in office from the
beginning of the half year until the date of this report.
REVIEW OF OPERATIONS AND ACTIVITIES
Berkeley is a uranium exploration and development company with a
quality resource base in Spain. The Company is currently focussed
on advancing its wholly owned flagship Salamanca Project.
The Salamanca Project comprises the Retortillo, Alameda, Zona 7
and Gambuta deposits, plus a number of other Satellite deposits
located in western Spain.
Highlights during the half year include:
-- Outstanding intercepts in 2014 drilling program at Zona 7:
Ø 2013 drilling program at Zona 7, the largest of the Retortillo
Satellite Deposits, recorded significant high grade intersections
at shallow depths and essentially doubled the strike extent of the
mineralised zone;
Ø 2014 drill program, completed in September, was aimed at
infilling the zone of mineralisation delineated by 2013 drilling
and extending it further to the south-west;
Ø High grade mineralisation was again intersected at shallow
depths (from surface to a maximum of 73 metres), with thicknesses
up to 25 metres;
Ø Outstanding intercepts from the 45 reverse circulation drill
holes include:
Ø 21 metres @ 3,101 ppm U(3) O(8)
Ø 19 metres @ 2,332 ppm U(3) O(8)
Ø 25 metres @ 2,005 ppm U(3) O(8)
Ø 21 metres @ 1,535 ppm U(3) O(8)
Ø 17 metres @ 1,517 ppm U(3) O(8)
Ø 20 metres @ 1,238 ppm U(3) O(8)
Ø Mineralisation remains open along the north-western margin,
and along strike to the southwest.
-- Substantial increase in Zona 7 Resource:
Ø Zona 7 Mineral Resource Estimate ('MRE') increased to 30.1
Mlbs U(3) O(8) (previously 3.6 Mlbs);
Ø Average grade of the MRE increased by 42% to 589 ppm U(3) O(8)
;
Ø 90% of the MRE within 50 metres of surface;
Ø Salamanca Project total resource base increased by 43% to 88.2
Mlbs U(3) O(8) ; and
Ø The successful exploration drilling at Zona 7 and subsequent
increase in resource highlights the significant exploration and
resource growth potential of the broader Salamanca Project.
-- Scoping Study commenced to determine the optimum integration
of Zona 7 with the development of Retortillo and Alameda, thereby
potentially increasing the scale and/or mine life of the
Project.
-- Key inputs for the Salamanca Project Definitive Feasibility Study ('DFS') advanced:
Ø The DFS is currently focussed on the integrated development of
Retortillo and Alameda however, Zona 7 will be incorporated
following completion of the abovementioned Scoping Study;
Ø The resource infill drilling program at Retortillo, aimed at
upgrading sections of the resource to the Measured category, was
completed. The data obtained from this infill drilling program will
form the basis for a revised MRE, which is anticipated to be
completed in the current quarter;
Ø Metallurgical column leaching testwork for Retortillo was
completed. Solvent extraction characterisation tests are now
underway; and
Ø Permeability and hydraulic conductivity tests were completed
at Retortillo. The results of these tests, along with the pumping
tests completed in the previous quarter, are currently being used
to update the Retortillo hydrogeological model for incorporation
into the DFS.
Operations
Zona 7
Zona 7 is located within 10 kilometres of the proposed
centralised processing plant at Retortillo andthere is scope to
integrate it with planned development of Retortillo and Alameda,
and potentially increase the level of production and/or mine life
of the Salamanca Project.
A review of all available data for the regional tenements
surrounding the existing resources in late 2012 identified the
potential extension of Zona 7 to the southwest as a priority drill
target. An 18 hole, 1,128 metre reverse circulation ('RC') drill
program was subsequently completed in mid-2013 to test this
priority target. This drilling, which was carried out on an
approximately 400 metre by 100 metre grid, resulted in the
mineralised zone being extended a further 1,200 metres to the
southwest of the previous resource area.
Drilling
The 2014 drilling program, which comprised 45 RC holes for 2,923
metres and five diamond core ('DD') holes for 391 metres, was aimed
at infilling the Zona 7 extension on a notional 100 metre by 100
metre grid.
The mineralisation intersected in the new infill holes showed
good continuity of both thickness and grade exists between the
previous broader spaced drill holes within the Zona 7 extension.
Significant high grade intersections have been recorded at shallow
depths (from surface to a maximum depth of 73 metres), with
thicknesses up to 25 metres (Table 1).
Table 1: Zona 7 - 2014 Drilling Program - Select Intercepts
Hole No. Down Hole Intercept From Depth
(Down Hole)
---------- --------------------- -------------
21m @ 3,101 ppm
Z7R-102 U(3) O(8) 5m
---------- --------------------- -------------
25m @ 2,005 ppm
U(3) O(8)
17m @ 1,517 ppm 11m
Z7R-101 U(3) O(8) 50m
---------- --------------------- -------------
21m @ 1,535 ppm
Z7R-104 U(3) O(8) 2m
10m @ 501 ppm
U(3) O(8) 26m
-------------------------------- -------------
16m @ 1,014 ppm
Z7R-096 U(3) O(8) 5m
---------- --------------------- -------------
19m @ 2,332 ppm
Z7R-112 U(3) O(8) 30m
---------- --------------------- -------------
20m @ 1,238 ppm
Z7R-140 U(3) O(8) 13m
---------- --------------------- -------------
12m @ 1,422 ppm
Z7R-138 U(3) O(8) 32m
18m @ 825 ppm
U(3) O(8) 47m
-------------------------------- -------------
13m @ 1,067 ppm
Z7R-137 U(3) O(8) 20m
---------- --------------------- -------------
20m @ 607 ppm
Z7R-142 U(3) O(8) 16m
---------- --------------------- -------------
11m @ 652 ppm
Z7R-139 U(3) O(8) 26m
10m @ 1,033 ppm
U(3) O(8) 40m
-------------------------------- -------------
4m @ 1,633 ppm
Z7R-114 U(3) O(8) 20m
---------- --------------------- -------------
The mineralisation remains open along the north-western margin,
and along strike to the southwest. Both of these areas will be
targeted in subsequent drilling campaigns.
Mineral Resource Estimate
The Mineral Resource Estimate ('MRE') for Zona 7 was updated in
November 2014, incorporating additional drilling and sampling
information from the 2013 and 2014 drilling campaigns. The MRE was
classified as Inferred based on the guidelines recommended in the
JORC Code (2012).
The MRE is reported at a lower cut-off grade of 200 ppm U(3)
O(8) (Table 2), along with estimates showing the range of U(3) O(8)
cut-off grades that would span the range applicable to open pit
mining (Table 3).
Table 2: Zona 7 - Mineral Resource Estimate
Zona 7 - Inferred Mineral Resource Estimate
as at 25 November 2014
Reported at a lower cut-off grade of 200
ppm U(3) O(8)
-------------------------------------------------------
Domain Tonnage Grade Contained
U(3) O(8)
(million (U(3) O(8) (million
tonnes) ppm) pounds)
---------------- ---------- ------------ -----------
2 / 3 /
4 / 5 5.1 318 3.6
---------------- ---------- ------------ -----------
6 18.1 665 26.6
---------------- ---------- ------------ -----------
Total Inferred 23.2 589 30.1
---------------- ---------- ------------ -----------
All figures are rounded to reflect appropriate levels of
confidence. Apparent differences occur due to rounding.
Table 3: Zona 7 - Grade Tonnage Table
Zona 7 - Inferred Mineral Resource Estimate
as at 25 November 2014
-----------------------------------------------------
Lower Cut-off Tonnage Grade Contained
Grade U(3) O(8)
(U(3) O(8) (million (U(3) O(8) (million
ppm) tonnes) ppm) pounds)
-------------- ---------- ------------ -----------
100 35.7 434 34.2
-------------- ---------- ------------ -----------
200 23.2 589 30.1
-------------- ---------- ------------ -----------
300 15.7 754 26.1
-------------- ---------- ------------ -----------
400 11.9 882 23.2
-------------- ---------- ------------ -----------
500 9.4 1,001 20.7
-------------- ---------- ------------ -----------
Zona 7 - Scoping Study
Given the significant scale, high grade and shallow depth of the
Zona 7 deposit, the Company has commenced a Scoping Study to
determine the optimum integration of Zona 7 with the development of
Retortillo and Alameda, thereby potentially increasing the level of
production and/or mine life of the Project.
The key considerations for the Scoping Study will be preferred
mining and processing route, scale, throughput rate, mine life,
infrastructure, community and environmental impacts.
Retortillo / Alameda
The Company has completed a Preliminary Feasibility Study
('PFS') on the integrated development of Retortillo and Alameda,
which clearly demonstrated the Project's potential to support a
significant scale, long life uranium mining operation.
Using only the current MRE for Retortillo and Alameda, which
total 34.5 million pounds U(3) O(8) (36.9 million tonnes at 424
ppm; 200 ppm U(3) O(8) cut-off grade), as a base case scenario, the
PFS showed that the Project can support an average annual
production of 3.3 million pounds of U(3) O(8) during the seven
years of steady state operation and 2.7 million pounds of U(3) O(8)
over a minimum eleven year mine life (refer ASX announcement dated
26 September 2013).
Definitive Feasibility Study
The DFS for the Project commenced in 2014, with the key areas of
focus including:
-- Resource infill drilling programs aimed at upgrading the
classification of specific portions of the current Retortillo and
Alameda MRE's to the Measured category;
-- Further metallurgical testwork programs, including additional
column leach work (six metre columns), in combination with ion
exchange ('IX') at Alameda and solvent extraction ('SX') and
ammonium diuranate ('ADU') precipitation at Retortillo to generate
more detailed information relating to the pH and acid consumption
optimisation, design and sizing of the IX and SX units, and final
product specification;
-- Development of a Geo-Met model which will incorporate
additional geological and metallurgical parameters into the
resource block model to support metallurgical process modelling and
mine planning and optimisation;
-- Open pit optimisation, detailed mine design and production
scheduling using the upgraded MRE block models;
-- Enhanced design of the project infrastructure and site facilities;
-- Undertaking engineering studies to support capital and
operating cost estimates for the Project to a level of accuracy of
nominally +/-10%; and
-- Undertaking an evaluation of the various alternatives for
funding the development of the Project and the sale of future
uranium production (including uranium marketing and off-take
arrangements).
During the half year a number of work programs providing key
inputs to the DFS, including the resource infill drilling program
at Retortillo, the metallurgical testwork program and
hydrogeological studies for both sites, were advanced.
Drilling
An infill drilling program at Retortillo, aimed at upgrading the
resource classification of the areas to be mined during the initial
two years of the PFS production schedule to the Measured category,
was completed during the half year.
The program was designed to close the existing drill pattern
down to a notional 35 metre by 35 metre pattern within the areas
targeted while the core obtained from the DD drilling will
facilitate enhanced geological and structural understanding of the
deposit.
Following completion of the RC component of the program in
September, the DD program was completed in November. In total, 69
RC holes for 4,693 metres and four DD holes for 291 metres were
drilled.
The data obtained from this infill drilling program will form
the basis for a revised MRE, which is anticipated to be completed
and reported in April 2015.
Metallurgical Testwork
The metallurgical testwork program being undertaken for three
master composite samples, representative of various mining phases
at Retortillo, commenced during the half year at the Mintek
facilities in Johannesburg. The six metre column leaching testwork
was completed and SX characterisation tests are now underway.
Whilst final results are pending, the leaching characteristics
observed are generally in line with expectation.
Preparation for the master composite samples for Alameda was
completed however, the six metre column leaching testwork remain on
hold pending completion of the higher priority Zona 7 Scoping
Study.
Hydrogeology
Hydrogeology testwork during the half year included four 72 hour
pumping tests in the southern pit area at Retortillo which were
designed to:
-- Identify groundwater flows in non-fractured and fractured areas;
-- Identify groundwater flow in sandstone; and
-- Identify groundwater flow in a productive area.
The results will be used to update the hydrogeological model for
the site.
Permeability and hydraulic conductivity tests were also carried
out using the four DD holes at Retortillo. Data obtained from these
tests are currently being used to update the Retortillo
hydrogeological model.
At Alameda, work on updating the hydrogeological model for the
site was completed and confirmed the outcome of the previous model
included in the PFS.
Permitting
Following the grant of the Mining Licence in April 2014, the
approval processes associated with other key permits including the
Initial Authorisation of the process plant as a radioactive
facility and the Authorisation for Exceptional Use of the Land
(application for reclassification from rural to industrial use) of
the affected surface land area at Retortillo, continued to be the
focus of permitting related activities during the half year.
All documentation required for the Initial Authorisation of the
process plant as a radioactive facility, including the Radiological
Analytical Study and Pre-Operational Surveillance Plan have been
submitted by Berkeley and reviewed by technical staff within the
Nuclear Safety Council ('NSC'). The Company has subsequently
provided responses to all queries/requests for clarification put
forward by the NSC technical staff. The Initial Authorisation is
now pending review and approval of the documentation by the NSC
Board.
The Company submitted additional documentation pertaining to the
application for Exceptional Use of the Land at Retortillo to the
municipalities of Retortillo and Villavieja de Yeltes in November,
as requested by the Commission of Environment and Urbanism of
Salamanca. A number of follow-up meetings have been held with the
relevant authorities and Berkeley's application will be placed on
the agenda of a meeting of the Commission of Environment and
Urbanism of Salamanca (the substantive authority) in the coming
months.
The permitting process for Alameda also continued, with the
Exploitation Plan and Rehabilitation and Closure Plan being
submitted to the Ministry of Industry of the Central Government in
October. The Environmental Scoping Document was also submitted to
the Ministry of Industry in December and an introductory meeting
held with the Environment Department of the Central Government
following the submission. All key documentation associated with the
Initial Authorisation of the processing facilities at Alameda as a
radioactive facility has now been drafted. These documents will be
finalised once feedback is received on the Environmental Scoping
Document.
A stand-alone permitting process is required for Zona 7 however,
the substantive regulatory authorities are the same as those
involved in the Retortillo process. The documents required to
commence the Environmental and Mining Licence processes will be
prepared and submitted following completion of the Zona 7 Scoping
Study and initial Environmental and Radiological Protection
baseline studies.
Corporate
At 31 December 2014, the Company had cash reserves of A$16.1
million.
During the period, the Group completed an internal group
restructure resulting in the merger of Spanish subsidiary entities,
Berkeley Minera Espana, S.L. ('BME') and Minera de Rio Alagon,
S.L., with BME the surviving entity. The merger consolidates all of
the Salamanca Project licences under BME's ownership and is
expected to provide significant advantages to the Group in
permitting, stakeholder engagement, financing and reduction in
administration/compliance costs. There is no impact on the
Consolidated Entity from an accounting perspective.
Operating Results
The net operating loss after tax for the half year ended 31
December 2014 was $3,995,289 (2013: $4,186,622).
The loss for the period includes $3,557,219 (2013: $3,953,140)
in exploration and evaluation expenditure and share based payment
expenses of $186,616 (2013: $526,778) were also recognised during
the half year.
SIGNIFICANT POST BALANCE DATE EVENTS
At the date of this report there were no significant events
occurring after balance date requiring disclosure.
AUDITOR'S INDEPENDENCE DECLARATION
Section 307C of the Corporations Act 2001 requires our auditors,
Stantons International, to provide the Directors of Berkeley
Resources Limited with an Independence Declaration in relation to
the review of the half year financial report. This Independence
Declaration is on page 19 and forms part of this Directors'
Report.
Signed in accordance with a resolution of Directors.
Robert Behets
Non-Executive Director
12 March 2015
Competent Persons Statement
The information in this report that relates to 2014 Mineral
Resources for Zona 7 is extracted from the report entitled
'Salamanca Project Total Resource Increased By 43% to 88.2 Mlbs
U(3) O(8) following Substantial Increase In Zona 7 Resource' dated
26 November 2014 and is available to view on Berkeley's website at
www.berkeleyresources.com.au. The information in the original ASX
Announcement that relates to the 2014 Mineral Resources for Zona 7
was based on information compiled by Malcolm Titley, a Competent
Person who is a Member of The Australasian Institute of Mining and
Metallurgy. Mr Titley is employed by Maja Mining Limited, an
independent consulting company. Mr Titley has sufficient experience
which is relevant to the style of mineralisation and type of
deposit under consideration and to the activity which he is
undertaking to qualify as a Competent Person as defined in the 2012
Edition of the 'Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves'. The Company confirms
that it is not aware of any new information or data that materially
affects the information included in the original market
announcement and, in the case of estimates of Mineral Resources
that all material assumptions and technical parameters underpinning
the estimates in the relevant market announcement continue to apply
and have not materially changed. The Company confirms that the form
and context in which the Competent Person's findings are presented
have not been materially modified from the original market
announcement.
The information in this report that relates to 2014 Exploration
Results is extracted from the reports entitled 'Thick, High Grade
Mineralisation Intersected at Zona 7' dated 18 August 2014 and
'Further Thick, High Grade Drill Intersections at Zona 7' dated 10
November 2014 which are available to view on Berkeley's website at
www.berkeleyresources.com.au. The information in the original ASX
Announcements that relate to the 2014 Exploration Results is based
on information compiled by Robert Behets, a Competent Person who is
a Fellow of The Australasian Institute of Mining and Metallurgy. Mr
Behets is a holder of shares, options and performance rights in,
and is a director of, Berkeley Resources Limited. Mr Behets has
sufficient experience which is relevant to the style of
mineralisation and type of deposit under consideration and to the
activity which he is undertaking to qualify as a Competent Person
as defined in the 2012 Edition of the 'Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore
Reserves'. The Company confirms that it is not aware of any new
information or data that materially affects the information
included in the original market announcement. The Company confirms
that the form and context in which the Competent Person's findings
are presented have not been materially modified from the original
market announcement.
The information in this report that relates to earlier
Exploration Results and Mineral Resources is extracted from
Berkeley's ASX announcements dated 31 July 2012 (June 2012
Quarterly Report), 31 October 2012 (September 2012 Quarterly
Report), 7 August 2013 and 26 September 2013 which are available to
view on Berkeley's website at www.berkeleyresources.com.au. The
information in the original ASX announcements was based on
information compiled by Craig Gwatkin, who is a Member of The
Australian Institute of Mining and Metallurgy and was an employee
of Berkeley Resources Limited. Mr Gwatkin has sufficient experience
which is relevant to the style of mineralisation and type of
deposit under consideration and to the activity which he is
undertaking to qualify as a Competent Person as defined in the 2004
Edition of the 'Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves'. Mr Gwatkin consents
to the inclusion in the report of the matters based on his
information in the form and context in which it appears. This
information was prepared and first disclosed under the JORC Code
2004. It has not been updated since to comply with the JORC Code
2012 on the basis that the information has not materially changed
since it was last reported.
The information in this report that relates to the
Pre-Feasibility Study is extracted from Berkeley's ASX announcement
dated 26 September 2013 which is available to view on Berkeley's
website at www.berkeleyresources.com.au. The information in the
original ASX announcement was based on information compiled by Neil
Senior of SENET (Pty) Ltd. Mr Senior is a Fellow of The South
African Institute of Mining and Metallurgy and has sufficient
experience which is relevant to the style of mineralisation and
type of deposit under consideration and to the activity which he is
undertaking to qualify as a Competent Person as defined in the 2004
Edition of the 'Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves'. Mr Senior consents to
the inclusion in the report of the matters based on his information
in the form and context in which it appears. This information was
prepared and first disclosed under the JORC Code 2004. It has not
been updated since to comply with the JORC Code 2012 on the basis
that the information has not materially changed since it was last
reported.
Production Target
The Production Target stated in this Report is based on the
Company's Pre-Feasibility Study ('PFS') for the Salamanca Project
as released to the ASX on 26 September 2013. The information in
relation to the Production Target that the Company is required to
include in a public report in accordance with ASX Listing Rule 5.16
was included in the Company's June 2014 Quarterly Report released
to the ASX on 24 July 2014.
The Company confirms that the material assumptions underpinning
the PFS and Production Target referenced in the 26 September 2013
and 24 July 2014 releases continue to apply and have not materially
changed.
Forward Looking Statement
Statements regarding plans with respect to the Company's mineral
properties are forward-looking statements. There can be no
assurance that the Company's plans for development of its mineral
properties will proceed as currently expected. There can also be no
assurance that the Company will be able to confirm the presence of
additional mineral deposits, that any mineralisation will prove to
be economic or that a mine will successfully be developed on any of
the Company's mineral properties.
DIRECTORS' DECLARATION
In accordance with a resolution of the Directors of Berkeley
Resources Limited, I state that:
In the opinion of the Directors:
(a) the financial statements and notes, as set out on pages 10
to 18, are in accordance with the Corporations Act 2001,
including:
(i) complying with Accounting Standard AASB 134: Interim
Financial Reporting and the Corporations Regulations 2001; and
(ii) giving a true and fair view of the consolidated entity's
financial position as at 31 December 2014 and of its performance
for the half year ended on that date.
(b) there are reasonable grounds to believe that the Company
will be able to pay its debts as and when they become due and
payable.
On behalf of the Board
Robert Behets
Non-Executive Director
12 March 2015
CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER
COMPREHENSIVE INCOME
FOR THE HALF YEAR ENDED 31 DECEMBER 2014
Note Half Year Ended Half Year Ended
31 December 31 December
2014 2013
$ $
Revenue from continuing
operations 5 314,580 806,487
Exploration and evaluation
costs (3,557,219) (3,953,140)
Corporate and administration
costs (566,034) (513,191)
Share based payments
expense (186,616) (526,778)
-------------------------------- ----- ---------------- ----------------
Loss before income tax (3,995,289) (4,186,622)
Income tax expense - -
-------------------------------- ----- ---------------- ----------------
Loss for the half year
attributable to Members
of Berkeley Resources
Limited (3,995,289) (4,186,622)
-------------------------------- ----- ---------------- ----------------
Other comprehensive
income, net of income
tax:
Items that will not - -
be reclassified subsequently
to profit or loss
Items that may be reclassified
subsequently to profit
or loss
Exchange differences
arising on translation
of foreign operations 264,586 877,694
-------------------------------- ----- ---------------- ----------------
Other comprehensive
income/(loss) for the
period, net of income
tax 264,586 877,694
-------------------------------- ----- ---------------- ----------------
Total comprehensive
loss for the half year
attributable to Members
of Berkeley Resources
Limited (3,730,703) (3,308,928)
================================ ===== ================ ================
Earnings per share
Basic loss per share
(cents per share) (2.22) (2.33)
Diluted loss per share
(cents per share) (2.22) (2.33)
-------------------------------- ----- ---------------- ----------------
The above Condensed Consolidated Statement of Profit or Loss and
Other Comprehensive Income should be read in conjunction with the
accompanying notes.
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2014
Note 31 December 30 June 2014
2014
$ $
ASSETS
Current Assets
Cash and cash equivalents 16,162,995 20,245,401
Trade and other receivables 783,610 549,183
----------------------------- ----- ------------- -------------
Total Current Assets 16,946,605 20,794,584
----------------------------- ----- ------------- -------------
Non-current Assets
Exploration expenditure 6 14,523,864 14,268,990
Property, plant and
equipment 1,773,060 1,785,251
Other financial assets 125,769 132,003
----------------------------- ----- ------------- -------------
Total Non-current Assets 16,422,693 16,186,244
----------------------------- ----- ------------- -------------
TOTAL ASSETS 33,369,298 36,980,828
----------------------------- ----- ------------- -------------
LIABILITIES
Current Liabilities
Trade and other payables 1,047,736 1,130,791
Other financial liabilities 283,641 268,029
----------------------------- ----- ------------- -------------
Total Current Liabilities 1,331,377 1,398,820
----------------------------- ----- ------------- -------------
TOTAL LIABILITIES 1,331,377 1,398,820
----------------------------- ----- ------------- -------------
NET ASSETS 32,037,921 35,582,008
----------------------------- ----- ------------- -------------
EQUITY
Issued capital 7 119,358,591 119,358,591
Reserves 8 (955,127) (1,180,339)
Accumulated losses (86,365,543) (82,596,244)
----------------------------- ----- ------------- -------------
TOTAL EQUITY 32,037,921 35,582,008
----------------------------- ----- ------------- -------------
The above Condensed Consolidated Statement of Financial Position
should be read in conjunction with the accompanying notes.
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE HALF YEAR ENDED 31 DECEMBER 2014
Issued Capital Share Based Foreign Accumulated Total
Payments Currency Losses
Reserve Translation
Reserve
$ $ $ $ $
As at 1 July 2014 119,358,591 1,240,193 (2,420,532) (82,596,244) 35,582,008
Total comprehensive loss for the
period:
Net loss for the period - - - (3,995,289) (3,995,289)
Other comprehensive income:
Exchange differences arising on
translation of foreign operations - - 264,586 - 264,586
---------------------------------------- --------------- ------------- ------------- -------------- -------------
Total comprehensive income/(loss) - - 264,586 (3,995,289) (3,730,703)
---------------------------------------- --------------- ------------- ------------- -------------- -------------
Transactions with owners, recorded
directly in equity
Transfer from share based payments
reserve - (225,990) - 225,990 -
Share based payments - 186,616 - - 186,616
---------------------------------------- --------------- ------------- ------------- -------------- -------------
As at 31 December 2014 119,358,591 1,200,819 (2,155,946) (86,365,543) 32,037,921
---------------------------------------- --------------- ------------- ------------- -------------- -------------
As at 1 July 2013 119,061,813 2,623,721 (2,593,048) (76,955,886) 42,136,600
Total comprehensive loss for the
period:
Net loss for the period - - - (4,186,622) (4,186,622)
Other comprehensive income:
Exchange differences arising on
translation of foreign operations - - 877,694 - 877,694
---------------------------------------- --------------- ------------- ------------- -------------- -------------
Total comprehensive income/(loss) - - 877,694 (4,186,622) (3,308,928)
---------------------------------------- --------------- ------------- ------------- -------------- -------------
Transactions with owners, recorded
directly in equity
Transfer from share based payments
reserve 299,112 (1,181,095) - 881,983 -
Share based payments - 526,778 - - 526,778
---------------------------------------- --------------- ------------- ------------- -------------- -------------
As at 31 December 2013 119,360,925 1,969,404 (1,715,354) (80,260,525) 39,354,450
---------------------------------------- --------------- ------------- ------------- -------------- -------------
The above Condensed Consolidated Statement of Changes in Equity
should be read in conjunction with the accompanying notes.
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE HALF YEAR ENDED 31 DECEMBER 2014
Half Year Ended Half Year Ended
31 December 2014 31 December 2013
$ $
Cash flows from operating activities
Payments to suppliers and employees (4,368,135) (4,921,978)
Interest received 358,670 331,069
Rebates received - 328,583
Net cash outflow from operating activities (4,009,465) (4,262,326)
-------------------------------------------------------------- ----------------- -----------------
Cash flows from investing activities
Payments for property, plant and equipment (68,413) (271,690)
Payments for exploration and evaluation (4,606) -
-------------------------------------------------------------- ----------------- -----------------
Net cash outflow from investing activities (73,019) (271,690)
-------------------------------------------------------------- ----------------- -----------------
Cash flows from financing activities
Proceeds from issue of securities - -
Transaction costs from issue of shares and options - -
-------------------------------------------------------------- ----------------- -----------------
Net cash inflow from financing activities - -
-------------------------------------------------------------- ----------------- -----------------
Net decrease in cash and cash equivalents held (4,082,484) (4,534,016)
Cash and cash equivalents at the beginning of the period 20,245,401 27,736,790
Effects of exchange rate changes on cash and cash equivalents 78 2,076
-------------------------------------------------------------- ----------------- -----------------
Cash and cash equivalents at the end of the period 16,162,995 23,204,850
-------------------------------------------------------------- ----------------- -----------------
The above Condensed Consolidated Statement of Cash Flows should
be read in conjunction with the accompanying notes.
CONDENSED NOTES TO THE FINANCIAL STATEMENTS
FOR THE HALF YEAR ENDED 31 DECEMBER 2014
1. REPORTING ENTITY
Berkeley Resources Limited (the "Company") is a company
domiciled in Australia. The interim financial report of the Company
is as at and for the six months ended 31 December 2014.
The annual financial report of the Company as at and for the
year ended 30 June 2014 is available upon request from the
Company's registered office.
2. STATEMENT OF COMPLIANCE
The interim financial report is a general purpose financial
report which has been prepared in accordance with Accounting
Standard AASB 134: Interim Financial Reporting and the Corporations
Act 2001.
This interim financial report does not include all the
information of the type normally included in an annual financial
report. Accordingly, this report is to be read in conjunction with
the annual report of Berkeley Resources Limited for the year ended
30 June 2014 and any public announcements made by Berkeley
Resources Limited during the interim reporting period in accordance
with the continuous disclosure requirements of the Corporations Act
2001.
This interim financial report was approved by the Board of
Directors on 11 March 2015.
(a) Basis of Preparation of Half Year Financial Report
The principal accounting policies adopted in the preparation of
the financial report have been consistently applied to all the
periods presented, unless otherwise stated.
Historical cost convention
These financial statements have been prepared under the
historical cost convention, as modified where applicable by the
revaluation of available-for-sale financial assets, financial
assets and liabilities (including derivative instruments) at fair
value through profit or loss.
3. SIGNIFICANT ACCOUNTING POLICIES
Accounting policies applied by the Consolidated Entity in this
consolidated interim financial report are the same as those applied
by the Consolidated Entity in its consolidated financial report for
the year ended 30 June 2014.
In the current period, the Group has adopted all of the new and
revised Standards and Interpretations issued by the Australian
Accounting Standards Board (the AASB) that are relevant to its
operations and effective for annual reporting periods beginning on
or after 1 July 2014. The adoption of these new and revised
standards has not resulted in any significant changes to the
Group's accounting policies or to the amounts reported for the
current or prior periods.
New and revised Standards and amendments thereof and
Interpretations effective for the current half-year that are
relevant to the Group include:
-- AASB 132 Financial Instruments: Presentation and AASB 2012-3
Amendments to Australian Accounting Standards arising from AASB
132;
-- AASB 136 Impairment of Assets and AASB 2013-3 Amendments to
Australian Accounting Standards arising from AASB 136; and
-- AASB 1031 Materiality and AASB 2013-9 (Part B) Amendments to
Australian Accounting Standards to delete references to AASB
1031.
4. SEGMENT INFORMATION
AASB 8 requires operating segments to be identified on the basis
of internal reports about components of the Consolidated Entity
that are regularly reviewed by the chief operating decision maker
in order to allocate resources to the segment and to assess its
performance.
The Consolidated Entity operates in one operating segment, being
exploration for mineral resources within Spain. This is the basis
on which internal reports are provided to the Directors for
assessing performance and determining the allocation of resources
within the Consolidated Entity.
5. REVENUE FROM CONTINUING OPERATIONS
Consolidated Consolidated
31 December 31 December
2014 2013
$ $
Interest revenue 314,580 477,904
R&D rebate received - 328,583
314,580 806,487
--------------------- -------------- --------------
6. NON-CURRENT ASSETS - EXPLORATION EXPENDITURE
Consolidated Consolidated
31 December 30 June
2014 2014
$ $
The group has mineral exploration
costs carried forward in
respect of areas of interest:
Areas in exploration at cost:
Salamanca Uranium Project
Balance at the beginning
of period 14,268,990 14,173,930
Net additions/ (disposals) 4,606 (68,457)
Foreign exchange differences 250,268 163,517
------------------------------------- -------------- -------------
Balance at end of period 14,523,864 14,268,990
------------------------------------- -------------- -------------
The value of the exploration interests is dependent upon the
discovery of commercially viable reserves and the successful
development or alternatively sale, of the respective tenements. An
amount of EUR6m (A$8.94m) relates to the capitalisation of the fees
paid to ENUSA under the Co-operation Agreement relating to the
tenements within the State Reserves. The Company reached agreement
with ENUSA in July 2012 in the form of an Addendum to the
Consortium Agreement signed in January 2009. The Addendum includes
the following terms:
-- The Consortium now consists of the Addendum Reserves (State Reserves Salamanca 28 and 29);
-- Berkeley's stake in the Consortium has increased to 100%;
-- ENUSA will remain the owner of State Reserves 28 and 29,
however the exploitation rights have been assigned to Berkeley,
together with authority to submit all applications for the
permitting process;
-- The Company is now the sole and exclusive operator in the
Addendum Reserves, with the right to exploit the contained uranium
resources and have full ownership of any uranium produced;
-- ENUSA will receive a production fee equivalent to 2.5% of the
net sale value (after marketing and transport costs) of any uranium
produced within the Addendum Reserves;
-- Berkeley has waived its rights to mining in State Reserves
2,25, 30, 31, Hoja 528-1 and the Saelices El Chico Exploitation
Concession, and has waived any rights to management of the Quercus
plant; and
-- The Co-operation Agreement with ENUSA, signed on 29 January 2009, has been terminated.
7. CONTRIBUTED EQUITY
(a) Issued and Paid Up Capital
Consolidated Consolidated
31 December 30 June
2014 2014
$ $
180,361,323 (30 June 2014:
180,361,323) fully paid ordinary
shares 119,358,591 119,358,591
----------------------------------- -------------- -------------
(b) Movements in Ordinary Share Capital During the Six Month Period ended 31 December 2014:
Number Issue Price
Date Details of Shares $ $
---------- ----------------- ------------ ------------ ------------
1 Jul 14 Opening Balance 180,361,323 119,358,591
31 Dec
14 Closing Balance 180,361,323 119,358,591
---------- ----------------- ------------ ------------ ------------
(c) Movements in Options and Performance Rights During the Six
Month Period ended 31 December 2014:
Date Details Number of Incentive Number of Fair Value Share based payments
Options Performance Rights reserve
$ $
1 Jul 14 Opening Balance 8,250,000 4,194,000 1,240,193
Performance rights
31 Dec 14 expired - (1,118,000) (225,990)
Share based payments
31 Dec 14 expense(1) - - 186,616
31 Dec 14 Closing Balance 8,250,000 3,076,000 1,200,819
----------- ---------------------- ---------------------- --------------------- ----------- ---------------------
Note:
(1) The value of Incentive Options granted is recognised over
the vesting period of the grant, in accordance with Australian
Accounting Standards.
The following options and performance rights have been issued
over unissued capital as at 31 December 2014:
Performance Rights
-- 1,478,000 performance rights at no exercise price that expire on 31 December 2016; and
-- 1,598,000 performance rights at no exercise price that expire on 31 December 2017.
Unlisted Options
-- 1,750,000 unlisted options at an exercise price of $0.475
each that expire on 22 December 2015;
-- 1,000,000 unlisted options at an exercise price of $0.41 each
that expire on 21 September 2015; and
-- 5,500,000 unlisted options at an exercise price of $0.45 each
that expire on 30 June 2016.
8. RESERVES
31 December 30 June 2014
2014
$ $
(a) Reserves
Share based payments reserve
(note 7(c)) 1,200,819 1,240,193
Foreign exchange reserve (2,155,946) (2,420,532)
(955,127) (1,180,339)
------------------------------ ------------ -------------
9. SUBSIDIARIES
The consolidated financial statements include the financial
statements of the Company and the subsidiaries listed in the
following table:
Name of Controlled Place
Entity of Incorporation Equity Interest Investment
31 December 30 31 December 30
2014 2014
% June $ June
2014
% 2014
$
Berkeley Exploration
Ltd UK 100(1) 100 - -
Minera de Rio Alagon.
S.L. Spain -(2) 100 - 5,481,411
Berkeley Minera
Espana, S.L. Spain 100(3) 100 5,481,411 -
Geothermal Energy
Sources, S.L. Spain 100(4) 100 - -
5,481,411 5,481,411
------------------------------------------- ------------ ------- ------------ ----------
Notes
(1) Berkeley Exploration Ltd is a 100% owned subsidiary of
Berkeley Resources Limited. Berkeley Exploration Ltd's issued and
paid up capital is GBP8,298,972 (30 June 2014: GBP2).
(2) Minera de Rio Alagon, S.L. was a wholly owned subsidiary of
Berkeley Resources Limited until 31 October 2014 when it merged
with Berkeley Minera Espana, S.L. as part of an internal group
restructure. Berkeley Minera Espana, S.L. was the surviving entity
and assumed all of Minera de Rio Alagon, S.L.'s assets and
liabilities.
(3) Berkeley Minera Espana, S.L. was incorporated on 12 May 2009
and is a wholly owned subsidiary of Berkeley Exploration Limited.
Berkeley Minera Espana, S.L.'s issued and paid up capital is
EUR56,917,363 (30 June 2014: EUR44,388,218).
(4) Berkeley Exploration Limited acquired 100% of the issued
shares in Geothermal Energy Sources, S.L. on 15 May 2009.
Geothermal Energy Sources, S.L.'s issued and paid up capital is
EUR20,000 (30 June 2014: EUR20,000).
(5) In the opinion of the Directors, the above named investments
in controlled entities have a carrying value in the Company at
balance date of $5,481,411 (30 June 2014: $5,481,411), being the
cost of the investment less provision for impairment.
(a) Ultimate Parent
Berkeley Resources Limited is the ultimate parent of the
Group.
10. CONTINGENT LIABILITIES AND COMMITMENTS
There was no material change in contingent liabilities or
commitments from those previously disclosed at the last reporting
period.
11. DIVIDENDS PAID OR PROVIDED FOR
No dividend has been paid or provided for during the half
year.
12. FAIR VALUE OF FINANCIAL INSTRUMENTS
The Group's financial instruments consist of those which are
measured at amortised cost including trade and other receivables,
security bonds, trade and other payables and other financial
liabilities. The carrying amount of these financial assets and
liabilities approximate their fair value.
13. SUBSEQUENT EVENTS AFTER BALANCE DATE
As at the date of this report there were no significant events
occurring after balance date requiring disclosure.
AUDITOR'S INDEPENDENCE DECLARATION AND REVIEW REPORT
The Auditor's Independence Declaration and the Independent
Auditor's Review Report are available in the full version of the
Interim Financial Report on Berkeley Resources Limited's website
at:
www.berkeleyresources.com.au
This information is provided by RNS
The company news service from the London Stock Exchange
END
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