TIDMTYM
RNS Number : 6410A
Tertiary Minerals PLC
30 May 2019
30 May 2019
TERTIARY MINERALS PLC
("Tertiary" or "the Company")
HALF-YEARLY REPORT 2019
Tertiary Minerals plc, the AIM-traded company building a
multi-commodity project portfolio, announces its unaudited interim
results for the six months ended 31 March 2019.
Operational Summary for the Six Months Ending 31 March 2019:
Paymaster Project and Acquisition Opportunities
-- The Company has staked claim to the Paymaster
zinc-copper-silver-cobalt-tellurium prospect in Nevada, USA
-- Grab samples assay up to 21% zinc (Zn), 6.5% lead (Pb), 3.3%
copper (Cu) and 253g/t silver (Ag)
-- Mineralisation intermittently exposed and sampled over 1.7km strike length
-- Samples also contain high levels of high-tech metals tellurium and cobalt (Co)
-- Successful soil sampling programme recently completed:
Ø 165 soil samples
Ø Significant elevated levels of Ag, Cu, Zn, Co and Pb over a
strike length of over 2,000 metres, maximum values:
-- Ag: 17.5 ppm
-- Cu: 896 ppm
-- Zn: 872 ppm
-- Co: 33 ppm
-- Pb: 2251 ppm
-- The Company will now conduct follow-up field work to define drilling targets
-- Several new projects are currently being assessed in line
with the Company's strategy to build a new multi-commodity project
portfolio to enable the Company to reduce its future geographical,
technical, permitting and commodity risk exposure and provide
long-term shareholder value
Storuman Fluorspar Project, Sweden - Exploitation (Mine) Permit
Progress
-- The Company, together with its Swedish Lawyers, has prepared
and submitted, on the 3 May 2019, a detailed appeal to the Swedish
government against the decision by the Swedish Mining Inspectorate
to reject Tertiary's Exploitation (Mine) Permit in its current
form
MB Fluorspar Project, Nevada, USA - Metallurgical Testwork
Progress
-- Scoping Study level bench scale metallurgical testwork
progressing at SGS Lakefield in Canada with the aim of producing
commercial grade acid-spar and mica
-- Testwork has indicated that some of the ore is
metallurgically complex, presenting certain processing challenges,
and therefore the Company has engaged the services of one of the
world's leading consultant fluorspar metallurgists to assist with
the testwork
Lassedalen Fluorspar Project, Norway
-- The project continues to be a lower priority for the Company
given the commitments on its other larger/more advanced fluorspar
projects, acquisition opportunities and new Paymaster Project
Kaaresselkä and Kiekerömaa Gold Projects, Finland
-- The Company retains pre-production and net smelter royalty
interest in two gold projects owned by Aurion Resources.
-- Aurion is a Canadian listed exploration company with primary
focus on the development of its Finnish gold projects, several of
which are under joint venture with B2Gold. Kinross Gold Corporation
are also significant shareholders of Aurion.
Partnership with Global Commodities Trading Group
-- Possehl continues to support the Tertiary management team
with the development of its fluorspar operations and the evaluation
of potential acquisition targets
Financial Results - Summary:
-- Operating Loss for the six-month period of GBP183,018 comprises:
o Revenue of GBP106,747; less
o Administration costs of GBP240,163 (which includes non-cash
share-based payments of GBP3,013); and
o Pre-licence and reconnaissance exploration costs totalling
GBP49,602
-- Total Group Loss of GBP182,873 is after crediting:
o Interest income of GBP145
-- 83,333,333 Ordinary Shares were issued during the reporting
period by way of placing at a price of 0.3 pence per share.
-- 418,578 Ordinary Shares were issued during the reporting
period to a director in satisfaction of outstanding directors fees
at a price of 0.325 pence per share
Enquiries
Tertiary Minerals plc
Patrick Cheetham, Executive
Chairman
Richard Clemmey, Managing Director +44 (0)1625 838 679
SP Angel Corporate Finance LLP
Nominated Adviser & Joint Broker
Lindsay Mair/Caroline Rowe +44 (0) 20 3470 0470
SVS Securities plc
Joint Broker
Elliot Hance +44 (0) 203 700 0093
Chairman's Statement
I am pleased to present our Interim Report for the six-month
period ended 31 March 2019.
Following my 2018 annual report to shareholders we received the
unwelcome news, in January this year, that the Mining Inspector in
Sweden had rejected our Mine Permit application for the Storuman
Fluorspar Project, siding with the view of the County
Administration that the proposed mine tailings site could not
coexist with traditional herding activities in that area. The
Company and its legal team strongly believes that the Mining
Inspector has not properly considered the Company's submission on
avoidance and mitigating measures and so, this month, we submitted
an appeal of the decision to the Swedish Government together with a
letter of support from the local Storuman municipal government. We
await the outcome.
We are continuing our scoping level work on the large MB
Fluorspar Project in Nevada, USA, where a programme of
metallurgical testwork is in progress to address metallurgical
complexities in those deposits that have been considered for early
production. The project contains multiple zones of fluorspar
mineralisation with different metallurgical characteristics and
consideration is being given to a further drill programme to test
for high-grade and metallurgically more-amenable deposits.
The fluorspar market remains strong and we continue to enjoy the
support of global trading commodities group Possehl in the
continuing evaluation of our fluorspar projects. However, the Board
recognises that, whilst its key fluorspar deposits are large and
potentially valuable, the current development hurdles have
progressively eroded investor interest in the Company. The Board is
actively addressing this and in the past few months we have been
advancing a programme of low-cost mineral exploration and claim
staking in the western USA to expand and diversify the Company's
project portfolio and lower the Company's exposure to commodity and
permitting risk.
The first of these projects - Paymaster, in Nevada - was staked
to cover high-grade base metal-silver-cobalt-tellurium surface
showings in a skarn environment in the highly productive Walker
Lane mineral belt. Similar geological environments host world-class
base and precious-metal deposits elsewhere in the western USA.
The Company is now pleased to announce the results of a soil
sampling programme at Paymaster where significant values of silver,
copper, cobalt, lead and zinc have been found over a strike length
of 2km. Values of over half an ounce of silver per ton and 0.2%
lead in soil are standout results. Follow up work is now planned to
define drill targets.
Our most recent project acquisition is the Pyramid Gold Project
in Nevada where we have secured an option to purchase a group of
patented mining claims containing high-grade epithermal gold
mineralisation which was discovered by drilling in the 1980s but
never followed up. The scope of this exciting target is highlighted
by an associated 750m long gold-in-soil anomaly and widespread
gold-bearing surface samples. Nevada is ranked as the best mining
jurisdiction in the world by the Frazer Institute and such targets
are hard to find in this mature exploration province. We hope to
move quickly to carry out confirmatory and follow-up drilling.
We continue to watch with interest the progress of Aurion
Resources in Finland where our pre-production and net smelter
royalty interests in two gold projects held by Aurion have been
brought into sharper focus by Aurion's high-grade gold discoveries
on the neighbouring Risti project. Aurion has a large land package
and is being supported financially by large gold producer Kinross
Gold Corporation.
The Company's financial results for the half-year are in line
with expectations and largely reflect the Company's project and
administration expenditures and enabling fundraising.
My expectation is that the Company's recent initiatives in
Nevada, USA, will result in a higher level of news flow and
investor interest than has been the case in the past several months
and so look forward to keeping shareholders informed of further
developments.
Patrick L Cheetham
Executive Chairman
30 May 2019
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have
been deemed inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 until the release of this
announcement.
Notes to Editors
Tertiary Minerals plc (ticker symbol 'TYM') is an AIM-traded
mineral exploration and development company building a
multi-commodity project portfolio.
CAUTIONARY NOTICE
The news release may contain certain statements and expressions
of belief, expectation or opinion which are forward looking
statements, and which relate, inter alia, to the Company's proposed
strategy, plans and objectives or to the expectations or intentions
of the Company's directors. Such forward-looking statements involve
known and unknown risks, uncertainties and other important factors
beyond the control of the Company that could cause the actual
performance or achievements of the Company to be materially
different from such forward-looking statements. Accordingly, you
should not rely on any forward-looking statements and save as
required by the AIM Rules for Companies or by law, the Company does
not accept any obligation to disseminate any updates or revisions
to such forward-looking statements.
Consolidated Income Statement
for the six months to 31 March 2019
Six months Six months Twelve months
to 31 March to 31 March to 30 September
2019 2018 2018
Unaudited Unaudited Audited
GBP GBP GBP
------------------------------------- ------------- ------------- -----------------
Revenue 106,747 110,554 218,841
------------------------------------- ------------- ------------- -----------------
Administration costs (240,163) (269,480) (507,931)
Pre-licence exploration costs (49,602) (11,954) (38,725)
Impairment of deferred exploration
asset - - (1,976,618)
Operating loss (183,018) (170,880) (2,304,433)
Gain on disposal of available
for sale investment - 37,263 37,094
Interest receivable 145 78 142
Loss before income tax (182,873) (133,539) (2,267,197)
Income tax - - -
------------------------------------- ------------- ------------- -----------------
Loss for the period attributable
to equity holders of the parent (182,873) (133,539) (2,267,197)
===================================== ============= ============= =================
Loss per share - basic and diluted
(pence)
(Note 2) (0.05) (0.04) (0.65)
===================================== ============= ============= =================
Consolidated Statement of Comprehensive Income
for the six months to 31 March 2019
Six months Six months Twelve months
to 31 March to to
2019 31 March 30 September
Unaudited 2018 2018
Unaudited Audited
GBP GBP GBP
------------------------------------------ ------------- ----------- --------------
Loss for the period (182,873) (133,539) (2,267,197)
------------------------------------------ ------------- ----------- --------------
Other comprehensive income:
Items that have been reclassified
subsequently to the Income Statement:
Disposal from available for sale
investment reserve - (37,263) (38,634)
------------- ----------- --------------
- (37,263) (38,634)
------------- ----------- --------------
Items that could be reclassified
subsequently to the Income Statement:
Foreign exchange translation differences
on foreign currency net investments
in subsidiaries (1,180) (209,948) (62,575)
Fair value movement on available
for sale investment reserve - (111,316) (72,010)
------------- ----------- --------------
(1,180) (321,264) (134,585)
------------- ----------- --------------
Items that will not be reclassified
to the Income Statement:
Changes in the fair value of equity (69,550) - -
investments
(69,550) - -
------------------------------------------ ------------- ----------- --------------
Total comprehensive loss for the
period attributable to equity holders
of the parent (253,603) (492,066) (2,440,416)
========================================== ============= =========== ==============
Company Registration Number 03821411
Consolidated Statement of Financial Position
at 31 March 2019
As at As at As at
31 March 31 March 30 September
2019 2018 2018
Unaudited Unaudited Audited
GBP GBP GBP
----------------------------------- ------------- ------------ --------------
Non-current assets
Intangible assets 2,730,899 4,406,689 2,670,386
Property, plant & equipment 2,658 2,463 3,308
Available for sale investment - 164,391 202,328
Financial assets at fair value 132,778 - -
through other comprehensive
income
----------------------------------- ------------- ------------ --------------
2,866,335 4,573,543 2,876,022
----------------------------------- ------------- ------------ --------------
Current assets
Receivables 67,786 95,668 96,653
Cash and cash equivalents 217,432 474,052 218,297
285,218 569,720 314,950
----------------------------------- ------------- ------------ --------------
Current liabilities
Trade and other payables (44,974) (75,464) (65,163)
Net current assets 240,244 494,256 249,787
----------------------------------- ------------- ------------ --------------
Net assets 3,106,579 5,067,799 3,125,809
=================================== ============= ============ ==============
Equity
Called up Ordinary Shares 44,307 35,910 35,932
Deferred Shares 2,644,062 2,644,062 2,644,062
Share premium account 10,008,687 9,784,363 9,785,702
Merger reserve 131,096 131,096 131,096
Share option reserve 112,952 204,522 168,923
Fair value reserve (6,324) 25,291 63,226
Foreign currency reserve 303,157 156,964 304,337
Accumulated losses (10,131,358) (7,914,409) (10,007,469)
----------------------------------- ------------- ------------ --------------
Equity attributable to the owners
of the parent 3,106,579 5,067,799 3,125,809
=================================== ============= ============ ==============
Consolidated Statement of Changes in Equity
Ordinary Deferred Share Merger Share Fair Foreign Accumulated Total
Share Shares Premium Reserve Warrant Value Currency Losses
Capital Account Reserve Reserve Reserve
GBP GBP GBP GBP GBP GBP GBP GBP GBP
--------------- ---------- ---------- ----------- --------- --------- ---------- ---------- ------------- ------------
At 30
September
2017 31,708 2,644,062 9,331,768 131,096 259,690 173,870 366,912 (7,840,036) 5,099,070
--------------- ---------- ---------- ----------- --------- --------- ---------- ---------- ------------- ------------
Loss for the
period - - - - - - - (170,802) (170,802)
Change in fair
value - - - - - (111,316) - - (111,316)
Transfer of
disposals to
income
statement - - - - - (37,263) - 37,263 -
Exchange
differences - - - - - - (209,948) - (209,948)
--------------- ---------- ---------- ----------- --------- --------- ---------- ---------- ------------- ------------
Total
comprehensive
loss for
the period - - - - - (148,579) (209,948) (133,539) (492,066)
--------------- ---------- ---------- ----------- --------- --------- ---------- ---------- ------------- ------------
Share issue 4,202 - 452,595 - - - - - 456,797
Share based
payments
expense - - - - 3,998 - - - 3,998
Transfer of
expired
warrants - - - - (59,166) - - 59,166 -
---------------
At 31 March
2018 35,910 2,644,062 9,784,363 131,096 204,522 25,291 156,964 (7,914,409) 5,067,799
Loss for the
period - - - - - - - (2,135,029) (2,135,029)
Change in fair
value - - - - - 39,306 - - 39,306
Transfer of
disposals to
income
statement - - - - - (1,371) - 1,371 -
Exchange
differences - - - - - - 147,373 - 147,373
--------------- ---------- ---------- ----------- --------- --------- ---------- ---------- ------------- ------------
Total
comprehensive
loss for
the period - - - - - 37,935 147,373 (2,133,658) (1,948,350)
--------------- ---------- ---------- ----------- --------- --------- ---------- ---------- ------------- ------------
Share issue 22 - 1,339 - - - - - 1,361
Share based
payments
expense - - - 4,999 - - - 4,999
Transfer of
expired
warrants - - - (40,598) - - 40,598 -
--------------- ---------- ---------- ----------- --------- --------- ---------- ---------- ------------- ------------
At 30
September
2018 35,932 2,644,062 9,785,702 131,096 168,923 63,226 304,337 (10,007,469) 3,125,809
--------------- ---------- ---------- ----------- --------- --------- ---------- ---------- ------------- ------------
Loss for the
period - - - - - - - (182,873) (182,873)
Change in fair
value - - - - - (69,550) - - (69,550)
Exchange
differences - - - - - - (1,180) - (1,180)
--------------- ---------- ---------- ----------- --------- --------- ---------- ---------- ------------- ------------
Total
comprehensive
loss for
the period - - - - - (69,550) (1,180) (182,873) (253,603)
--------------- ---------- ---------- ----------- --------- --------- ---------- ---------- ------------- ------------
Share issue 8,375 - 222,985 - - - - - 231,360
Share based
payments
expense - - - - 3,013 - - - 3,013
Transfer of
expired
warrants - - - - (58,984) - - 58,984 -
At 31 March
2019 44,307 2,644,062 10,008,687 131,096 112,952 (6,324) 303,157 (10,131,358) 3,106,579
=============== ========== ========== =========== ========= ========= ========== ========== ============= ============
Consolidated Statement of Cash Flows
for the six months to 31 March 2019
Six months Six months Twelve months
to 31 March to 31 March to 30 September
2019 2018 2018
Unaudited Unaudited Audited
GBP GBP GBP
------------------------------------------ ------------- ------------- -----------------
Operating activity
Total loss after tax excluding
interest received (183,018) (170,880) (2,267,339)
Depreciation charge 812 2,003 4,019
Shares issued in settlement of
outstanding wages 1,360 6,797 8,158
Share based payment charge 3,013 3,998 8,997
Impairment charge - deferred exploration
asset - - 1,976,618
Gain on disposal of available
for sale investment - - (37,094)
(Increase)/decrease in receivables 28,867 (1,415) (2,400)
Increase/(decrease) in payables (20,189) (344) (10,645)
Net cash outflow from operating
activity (169,155) (159,841) (319,686)
------------------------------------------ ------------- ------------- -----------------
Investing activity
Interest received 145 78 142
Exploration and development expenditures (61,318) (102,415) (201,622)
Disposal of development asset - - -
Disposal of available for sale
investment - 133,264 133,094
Purchase of property, plant &
equipment (162) (105) (2,966)
Net cash (outflow)/inflow from
investing activity (61,335) 30,822 (71,352)
------------------------------------------ ------------- ------------- -----------------
Financing activity
Issue of share capital (net of
expenses) 230,000 450,000 450,000
Net cash inflow from financing
activity 230,000 450,000 450,000
------------------------------------------ ------------- ------------- -----------------
Net (decrease)/increase in cash
and cash
equivalents (490) 320,981 58,962
Cash and cash equivalents at start
of period 218,297 159,278 159,278
Exchange differences (375) (6,207) 57
Cash and cash equivalents at end
of period 217,432 474,052 218,297
========================================== ============= ============= =================
Notes to the Interim Statement
1. Basis of preparation
The consolidated interim financial information has been prepared
in accordance with the accounting policies that are expected to be
adopted in the Group's full financial statements for the year
ending 30 September 2019 which are not expected to be significantly
different to those set out in Note 1 of the Group's audited
financial statements for the year ended 30 September 2018. These
are based on the recognition and measurement principles of IFRS in
issue as adopted by the European Union (EU) or that are expected to
be adopted and effective at 30 September 2019. The implementation
of new standards and interpretations has not led to any changes in
the Group's accounting policies (other than presentation and
disclosure) or had any other material impact on its financial
position. The financial information has not been prepared (and is
not required to be prepared) in accordance with IAS 34. The
accounting policies have been applied consistently throughout the
Group for the purposes of preparation of this financial
information.
The financial information in this statement relating to the six
months ended 31 March 2019 and the six months ended 31 March 2018
has neither been audited nor reviewed by the Auditors, pursuant to
guidance issued by the Auditing Practices Board. The financial
information presented for the year ended 30 September 2018 does not
constitute the full statutory accounts for that period. The Annual
Report and Financial Statements for the year ended 30 September
2018 have been filed with the Registrar of Companies. The
Independent Auditor's Report on the Annual Report and Financial
Statement for the year ended 30 September 2018 was unqualified,
although did draw attention to matters by way of emphasis in
relation to going concern, and did not contain a statement under
498(2) or 498(3) of the Companies Act 2006.
The directors prepare annual budgets and cash flow projections
for a 15 month period. These projections include the proceeds of
future fundraising necessary within the period to meet the
Company's and Group's planned discretionary project expenditures
and to maintain the Company and Group as a going concern. Although
the Company has been successful in raising finance in the past,
there is no assurance that it will obtain adequate finance in the
future. This represents a material uncertainty related to events or
conditions which may cast significant doubt on the entity's ability
to continue as a going concern and, therefore, that it may be
unable to realise its assets and discharge its liabilities in the
normal course of business. However, the directors have a reasonable
expectation that they will secure additional funding when required
to continue meeting corporate overheads and exploration costs for
the foreseeable future and therefore believe that the going concern
basis is appropriate for the preparation of the financial
statements.
2. Loss per share
Loss per share has been calculated on the attributable loss for
the period and the weighted average number of shares in issue
during the period.
Six months Six months Twelve months
to 31 March to 31 March to 30 September
2019 2018 2018
Unaudited Unaudited Audited
---------------------------- ------------- ------------- -----------------
Loss for the period (GBP) (182,873) (133,539) (2,267,197)
Weighted average shares
in issue (No.) 389,173,054 343,522,305 351,361,810
Basic and diluted loss per
share (pence) (0.05) (0.04) (0.65)
============================ ============= ============= =================
The loss attributable to ordinary shareholders and the weighted
average number of ordinary shares used for the purpose of
calculating diluted earnings per share are identical to those used
to calculate the basic earnings per ordinary share. This is because
the exercise of share warrants would have the effect of reducing
the loss per ordinary share and is therefore not dilutive under the
terms of IAS33.
3. Share capital
During the six months to 31 March 2019 the following share
issues took place:
An issue of 83,333,333 0.01p Ordinary Shares at 0.3p per share,
by way of a placing, for a total consideration of GBP250,000 before
expenses (25 January 2019).
An issue of 418,578 0.01p Ordinary Shares at 0.325p per share,
to a director, in satisfaction of outstanding directors' fees, for
a total consideration of GBP1,360 (21 February 2019).
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
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of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
IR AMMTTMBTJBBL
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