TIDMLND
RNS Number : 4749Z
Landore Resources Limited
21 September 2020
21 September 2020
Landore Resources Limited
("Landore Resources" or the "Company")
Interim Results for the Six Months Ended 30 June 2020
Landore Resources Limited (AIM:LND) is pleased to announce its
interim results for the six months ended 30 June 2020.
For more information, please contact:
Landore Resources Limited
Bill Humphries, Chief Executive Officer Tel: 07734 681262
Glenn Featherby, Finance Director Tel: 07730 420318
Cenkos Securities plc (Nominated Advisor and Broker)
Derrick Lee / Peter Lynch Tel: 0131 220 9100
MANAGEMENT DISCUSSION AND ANALYSIS
FOR THE SIX MONTHSED 30 JUNE 2020
General
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 2020 to 30 June 2020. All amounts are stated in
sterling.
Overview
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 2020 show a
loss of GBP695,406 (2019: loss GBP697,542). These results were in
line with expectations. Exploration costs were GBP102,750 (2019:
GBP262,254).
Three placings and subscriptions were completed between 1
January and 30 June 2020. On 14 January 2020, the Company completed
a placing and subscription to raise gross proceeds of GBP225,000
through the issue of 32,142,857 new ordinary shares at a price of
0.7 pence per share. On 24 April 2020, the Company raised further
gross proceeds of GBP260,000 through the issue of 38,518,519 shares
at a price of 0.675 pence per share, with each subscriber receiving
one warrant per ordinary share subscribed for, exercisable at 1
pence each. On 29 June 2020, the Company completed a placing and
subscription to raise gross proceeds of GBP2.8 million through the
issue of 414,814,815 new ordinary shares at a price of 0.675 pence
per share, with each subscriber receiving one warrant per ordinary
share subscribed for, exercisable at 1 pence each, with the shares
issued and funds being received after the period end in July
2020.
The Group cash at bank at 30 June 2020 was GBP79,000, with the
proceeds of the placing announced on 29 June 2020 being received
post period end. The Group has no debt but will need to raise
further equity in order to carry out its future exploration and
development activities beyond the current drilling and exploration
programme, and also for additional working capital. At present, the
Group has sufficient funding to complete the current drilling and
exploration programme and to meet Group working capital
requirements to the end of June 2021.
Operations
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,
www.landore.com .
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, Landore Resources' exploration efforts were
targeted at increasing the Junior Lake, BAM Gold resource towards
1,000,000 ounces of gold, and upgrading Inferred mineral resources
to an Indicated status, the results of which were subsequently used
to complete a revised Mineral Resource Estimate with Technical
Report. Both targets were achieved on time and within budget.
Cube Consulting Pty Ltd ("Cube") was engaged by Landore
Resources Canada Inc. ("Landore") to conduct a revised Mineral
Resource Estimate with 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 revised Mineral Resource Estimate and Technical Report were
reported by Landore on 7th January and 9th April 2020
respectively.
Highlights of the Drilling and Resource Update include:
-- The new Mineral Resource Estimate (MRE) modelling has
increased the BAM Gold resource to: 31,083,000 tonnes (t) at 1.02
grams/tonne (g/t) for 1,015,000 ounces of gold including
21,930,000t at 1.06g/t for 747,000 ounces gold in the Indicated
Category.
-- The BAM Gold Deposit now extends for 3,700 metres from 400E
to 4100E and remains open down dip and along strike to the east and
the west. In addition, the recently completed Soil sampling program
has identified widespread gold mineralisation along strike to the
west for a further 7 kilometres.
In response to the significant increase in the price of gold
since the Company's Preliminary Economic Assessment ("PEA") was
updated in December 2019, a 'Pit Optimisation Review' (the
"Review") complete with physicals and financial analysis' at
various gold prices ranging from US$1,500 to US$2,400 has been
prepared. The Review shows revenue increasing from US$842 million
to US$1,977 million over that range. The Review covering the five
Pit Shell Options considered the existing Indicated and Inferred
Resource based on drilling completed to date.
The December 2019 Updated PEA for the BAM Gold project provided
a price sensitivity analysis of the 'Extended case' which, at a
gold price of US$1,560, would produce a Post Tax, Net Present value
(NPV) of US$227 million. At the current gold price of US$1,900 that
Post tax NPV would be elevated to US$370 million.
Drilling and exploration is planned to commence in October 2020
to further extend the known BAM Gold Zone to the east and west and
to test any potential mineralisation identified in the recently
completed soil sampling exploration program (as reported 9th
December 2019). In addition, deep holes are planned to test the
continuity of high grade mineralisation below the existing BAM Gold
Deposit.
The continued rapid growth of the BAM Gold Deposit together with
the possible future development of the other known gold prospects
along this highly prospective 31 kilometre long Archean greenstone
belt bodes well for the future of the Junior Lake Property hosting
a multi-million ounce gold deposit.
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 the Group's exploration initiatives and the Company
seeks to establish and maintain co-operative relationships with
First Nations communities, hiring local personnel and using local
contractors and suppliers where possible. 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
towards its operations, and is aware of its social responsibility
and its environmental duty.
18 September 2020
UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHSED 30 JUNE 2020
Group Group
Six months Six months
ended ended
30 June 30 June
Notes 2020 2020
GBP GBP
Exploration costs 2 (102,750) (262,254)
Administrative expenses (592,669) (435,350)
Operating loss (695,419) (697,604)
Finance income 13 62
Loss before income tax (695,406) (697,542)
Income tax expense - -
------------ ------------
Loss for the period (695,406) (697,542)
============ ============
Other comprehensive loss:
Exchange difference on translating
foreign
operations (1,946) (333)
------------ ------------
Other comprehensive loss for the
year
net of tax (1,946) (333)
============ ============
Total comprehensive loss for the
period (697,352) (697,875)
============ ============
Loss attributable to:
Equity holders of the Company (694,901) (697,281)
Non-controlling interests (505) (261)
============ ============
(695,406) (697,542)
Total comprehensive loss attributable
to:
Equity holders of the Company (696,847) (697,614)
Non-controlling interests (505) (261)
============ ============
(697,352) (697,875)
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.
UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHSED 30 JUNE 2020
Share Cumulative Non-
Share options Retained translation controlling
capital reserve earnings reserve interest Total
GBP GBP GBP GBP GBP GBP
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
============ ======== ============= ============ ============ ==========
Balance at
1 January 2020 42,915,903 640,347 (43,353,485) (343,517) (3,227) (143,979)
Loss for the period - - (694,901) - (505) (695,406)
Other comprehensive loss in the period - - - (1,946) - (1,946)
Issue of ordinary share capital 553,000 - - - - 553,000
Placing expenses (57,700) - - - - (57,700)
Balance at
30 June 2020 43,411,203 640,347 (44,048,386) (345,463) (3,732) (346,031)
============ ======== ============= ============ ============ ==========
UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AT 30 JUNE 2020
Group Group Group
As at As at As at
30 June 2020 30 June 2019 31 December
GBP GBP 2019
GBP
Assets Notes
Non-current assets
Property, plant and
equipment 28,688 36,456 32,323
28,688 36,456 32,323
-------------- -------------- -------------
Current assets
Trade and other receivables 13,880 48,651 19,965
Cash and cash equivalents 79,032 689,089 107,668
-------------- -------------- -------------
92,912 737,740 127,633
-------------- -------------- -------------
Total assets 121,600 774,196 159,956
-------------- -------------- -------------
Equity
Capital and reserves
attributable to the
Company's equity holders
Share capital 4 43,411,203 42,205,704 42,915,903
Share options reserve 640,347 717,424 640,347
Retained earnings 5 (44,048,386) (42,120,889) (43,353,485)
Cumulative translation
reserve (345,463) (312,966) (343,517)
-------------- -------------- -------------
Total equity shareholders'
funds (342,299) 489,273 (140,752)
-------------- -------------- -------------
Non-controlling interests (3,732) (2,566) (3,227)
-------------- -------------- -------------
Total equity (346,031) 486,707 (143,979)
-------------- -------------- -------------
Liabilities
Current liabilities
Trade and other payables 431,911 251,481 269,058
Income tax liabilities 35,720 36,008 34,877
-------------- -------------- -------------
467,631 287,489 303,935
-------------- -------------- -------------
Total liabilities 467,631 287,489 303,935
-------------- -------------- -------------
Total equity and liabilities 121,600 774,196 159,956
============== ============== =============
UNAUDITED CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHSED 30 JUNE 2020
Group Group
Six months ended Six months ended
30 June 2020 30 June 2019
GBP GBP
Cash flows from operating activities
Operating loss (695,419) (697,604)
Finance income 13 62
Depreciation of tangible fixed assets 4,315 8,925
Decrease/(increase) in receivables 6,271 (4,109)
Increase in payables 226,954 142,433
----------------- -----------------
Net cash outflow from operating activities (457,866) (550,293)
Cash flows from financing activities
Issue of ordinary share capital 485,000 1,000,000
Issue costs (57,700) (41,312)
----------------- -----------------
Net cash inflow from financing activities 427,300 958,688
Net (decrease)/increase in cash and cash equivalents (30,566) 408,395
Cash and cash equivalents at beginning of period 107,668 277,458
Exchange gain on cash and cash equivalents 1,930 3,236
----------------- -----------------
Cash and cash equivalents at end of period 79,032 689,089
================= =================
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHSED 30 JUNE 2020
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 2020). The Directors have elected not to apply
IAS 34 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 2019.
2 Exploration expenditure and mineral properties
1 January Net Expenditure Accumulated
2020 in Period expenditure
GBP GBP 30 June
2020
GBP
Junior Lake/Lamaune
Lake 22,819,766 99,647 22,919,413
Miminiska Lake 1,530,941 1,107 1,532,048
Lessard 705,347 - 705,347
Frond Lake 84,976 1,392 86,368
Wottam 61,558 - 61,558
Others, including Swole
Lake, West Graham and
Root Lake 79,310 604 79,914
25,281,898 102,750 25,384,648
=========== ================ =============
Mineral properties at 30 June 2020 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 1,352,123,678 (June 2019: 1,067,620,594).
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
2020 2020
GBP GBP
Issued:
1,384,261,884 (December 2019:
1,303,600,508) ordinary shares
of nil par value 43,411,203 42,915,903
============= =============
On 21 January 2020, 32,142,857 ordinary shares were issued at a
price of GBP0.007 each as part of a share subscription raising
GBP225,000 before issue costs.
On 13 February 2020, 10,000,000 ordinary shares were issued at a
price of GBP0.0068 each to Richard Prickett as part of his
compensation for taking a reduced salary from 1 July 2015 which was
intended to be deferred and in recognition of his long service to
the Company.
On 4 May 2020, 38,518,519 ordinary shares were issued at a price
of GBP0.00675 each as part of a share subscription raising
GBP260,000 before issue costs.
As part of this share issue one warrant was issued with each new
ordinary share, totalling 38,518,519 warrants, with an exercise
price of GBP0.01 per ordinary share and are exercisable 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.
Share
capital
2020
GBP
At 1 January 2020 42,915,903
Shares issued in the period 553,000
Share issue costs (57,700)
At 30 June 2020 43,411,203
===========
5 Retained earnings
GBP
At 1 January 2020 (43,353,485)
Loss for the period (694,901)
At 30 June 2020 (44,048,386)
=============
6 Events after the interim reporting period
On 29 June 2020 the Company announced that it had conditionally
raised gross proceeds of GBP2.8m through a placing of 414,814,815
new ordinary shares at a price of 0.675 pence per new ordinary
share and the issue of 414,814,815 warrants to new and existing
institutional investors in the Company. The placing was approved by
the Company's shareholders at the Company's Extraordinary General
Meeting held on 13 July 2020.
On 24 July 2020 the Company issued a total of 48,000,000 options
over new ordinary shares to certain Directors and employees of the
Company. The options have an exercise price of 1.2 pence and can be
exercised from 24 January 2021 until 23 July 2025. Following this
award, there were 134,250,000 options outstanding.
On 20 August 2020 the number of issued ordinary shares of no par
value each in the Company was reduced by a multiple of 20. Upon the
share consolidation becoming effective, the 478,222,223 existing
warrants exercisable at 1 pence and the 7,142,857 existing warrants
exercisable at 0.875 pence currently outstanding were adjusted to
23,911,111 warrants exercisable at 20 pence and 357,142 warrants
exercisable at 17.50 pence respectively. Similarly, following the
share consolidation, the Company had a total of 6,712,500 options
outstanding. Following the share consolidation and admission of the
new ordinary shares to trading on AIM, the total number of shares
in issue and voting rights in the Company was 89,953,835.
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 rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
IR BDGDCRUBDGGI
(END) Dow Jones Newswires
September 21, 2020 02:00 ET (06:00 GMT)
Grafico Azioni Landore Resources (LSE:LND)
Storico
Da Mar 2024 a Apr 2024
Grafico Azioni Landore Resources (LSE:LND)
Storico
Da Apr 2023 a Apr 2024
