TIDMATM
RNS Number : 1812V
AfriTin Mining Ltd
29 November 2019
AfriTin Mining Limited
("AfriTin" or the "Company" and with its subsidiaries the
"Group")
Unaudited Interim Results
for the six months ended 31 August 2019
Chief Executive Officer's Statement
Introduction
I am pleased to report another busy period for the company. The
first half of this financial year has been marked by the Company
reaching several key milestones that have successfully propelled
AfriTin from a tin-development business into a tin-producing
business with development assets. There has been significant work
on the ground at our flagship Uis tin mine in Namibia, and with the
initial construction phase achieved, our efforts are now focused on
the final commissioning of the mine ahead of the highly anticipated
first shipment of tin concentrate.
Review of the business
As we have communicated to shareholders, the main objective for
the AfriTin team for the financial year was centered around first
material through the Phase 1 Pilot Plant. Our efforts culminated in
the production of tin concentrate in August 2019, which marked the
first significant material produced since the closure of the mine
almost 30 years ago. This is a major milestone for the Company as
we are now operating a tin-producing mine, which is testament to
the skill and hard work of the entire AfriTin team. The Company's
focus now moves to the ramp-up phase, with the intention of
ultimately treating 500 000 tonnes of ore per annum which would
yield approximately 800 tonnes of tin concentrate annually. This
achievement would then provide a platform to focus on the
feasibility study for the larger Phase 2 expansion at Uis which is
anticipated to see annual production capacity increase to 5 000
tonnes of tin concentrate per annum.
Concurrent with the development of the Phase 1 Pilot Plant, the
Company embarked on a resource drilling programme at Uis. The
purpose of the drilling programme was to validate tonnages and
grades to be able to report a JORC-compliant mineral resource of
the V1/V2 pegmatite body. This drilling programme was completed in
May, and in October 2019, post period end, the Company was pleased
to publish a maiden Measured, Indicated and Inferred Mineral
Resource estimate, prepared in accordance with JORC (2012), of
71.54 million tonnes of ore at a grade of 0.134% tin for 95 539
tonnes of contained tin (see announcement of 16 September 2019).
This maiden resource estimate confirmed the historical data, with
the additional down-dip drilling confirming extension and
thickening of the orebody at depth, increasing the resource
historically stated by SRK (1989). Of particular interest is the
addition of tantalum and lithium to the estimate which could
provide additional revenue streams in the future.
We look forward to progressing these studies, further
understanding the economic viability, and updating the market in
due course.
In May 2019 the Company announced the conclusion of an
electrical power supply agreement for its mining and processing
facility at Uis. The agreement provides for the full on-site power
requirements of the Phase 1 mining and processing facility. The
conclusion of this agreement is an important step in the
progression of the Uis project and will provide reliable energy to
site, improve the planned cost structure, and further support the
economic viability of our mine.
To bring the plant into production, complete the drilling
programme, and provide further capital for the ramp-up phase, the
Company sourced additional funding during the period by way of
GBP3m equity financing and a ZAR30m standby working capital
facility with Bushveld Minerals. This standby working capital
facility was then amended to rather provide surety for a N$35
million (c. GBP2.4m) working capital facility received from Nedbank
Namibia. At the same time, the Company entered into an offtake
agreement with Thailand Smelting and Refining Co., Limited
("Thaisarco") enabling AfriTin to sell its tin concentrate and
secure revenue for 12 months with an option to extend the contract.
We believe this agreement, along with the funding secured from
Nedbank Namibia, signalled a vote of confidence in the long-term
development of Uis and the strategy of AfriTin as a whole. We are
grateful to our shareholders, our new offtake partner and Nedbank
for their support in this regard.
On 26 November 2019 (after the period end), AfriTin raised
GBP3.8m through the issuing of 38 convertible loan notes of
GBP100,000 each (the "Notes"). The Notes have a term of 18 months
and attract interest at a rate of 10% per annum which is payable on
the redemption or conversion of the Notes. The Notes, including the
total amount of accrued but unpaid interest, are convertible at the
conversion price of 4p per share. The Notes can be redeemed at any
time at the election of the Company, after 10 business days' notice
of such intention, in whole or in part, if not already converted by
the noteholder and subject to the application of an early
redemption premium of 10%.
Today, the Company will be making its first shipment of tin
concentrate to Thaisarco from the Uis tin mine. The first shipment
of product is an exciting stage as we demonstrate proof of concept
and move into a revenue-generating phase. We look forward to
upscaling the sizes of the shipments going forward as we ramp up
phase 1 production.
Outlook
After a successful six months, the Directors believe the Company
is well positioned for the next six months. The directors remain
committed to becoming the African tin champion on AIM through a
two-phased strategy: finalising the proof of concept while
expanding the size and scope of the existing portfolio; and
leveraging the production profile to expand the operations of the
business.
Anthony Viljoen, CEO
For further information, please visit www.afritinmining.com or
contact:
AfriTin Limited
Anthony Viljoen, CEO +27 (11) 268 6555
Nominated Adviser and Joint Broker
WH Ireland Limited
Katy Mitchell
Adrian Hadden
James Sinclair-Ford +44 (0) 207 220 1666
Corporate Advisor and Joint Broker
Hannam & Partners
Andrew Chubb
Jay Ashfield
Nilesh Patel +44 (0) 20 7907 8500
Joint Broker
NOVUM Securities Limited
Jon Belliss +44 (0)20 7399 9400
Financial PR (United Kingdom)
Tavistock
Jos Simson
Barney Hayward +44 (0) 207 920 3150
CONSOLIDATED STATEMENT OF COMPREHENSIVE Income
For the 6 months ended 31 August 2019
6 months 6 months 12 months
ended ended ended
31 August 31 August 28 February
2019 2018 2019
(unaudited) (unaudited) (audited)
Note GBP GBP GBP
Continuing operations
Revenue - 15 584 26 782
(1 097
Administrative expenses 5 (615 516) (447 505) 718)
-------------- ------------- ---------------------
(1 070
Operating loss (615 516) (431 921) 936)
Finance income 3 749 - 13 416
Finance charges (15 346) - -
-------------- -------------
(1 057
Loss before tax (627 113) (431 921) 520)
Income tax expense 6 - - -
-------------- ------------- ---------------------
(1 057
Loss for the period (627 113) (431 921) 520)
Other comprehensive income
Items that will or may be reclassified
to profit or loss:
Exchange differences on translation
of share-based payment reserve 222 - (1 577)
Exchange differences on translation
of foreign operations (31 697) (476 000) (421 827)
Exchange differences on non-controlling
interest (21) - 332
(1 480
Total comprehensive income for the period (658 609) (907 921) 592)
============== ============= =====================
Loss for the period attributable to:
(1 050
Owners of the parent (624 551) (428 951) 074)
Non-controlling interests (2 562) (2 970) (7 446)
-------------- -------------
(1 057
(627 113) (431 921) 520)
============== ============= =====================
Total comprehensive loss for the period
attributable to:
(1 473
Owners of the parent (656 027) (905 296) 478)
Non-controlling interests (2 582) (2 625) (7 114)
-------------- ------------- ---------------------
(1 480
(658 609) (907 921) 592)
============== ============= =====================
Loss per ordinary share
Basic and diluted loss per share (in
pence) (0.10) (0.11) (0.23)
Consolidated Statement of Financial Position
As at 31 August 2019
Company number: 63974
31 August 31 August 28 February
2019 2018 2019
(unaudited) (unaudited) (audited)
Note GBP GBP GBP
Assets
Non-current assets
Intangible assets: exploration 6 140 7 012
and evaluation 8 7 596 732 243 317
1 552 5 785
Property, plant and equipment 9 9 333 036 655 043
-----------
16 929 7 692 12 797
Total non-current assets 768 898 360
=========== ============ =============
Current assets
Inventories 26 441 - 25 221
Trade and other receivables 10 992 390 223 424 474 963
6 653 1 781
Cash and cash equivalents 130 635 229 335
-----------
6 876 2 281
Total current assets 1 149 465 653 519
=========== ============ =============
18 079 14 569 15 078
Total assets 234 551 879
=========== ============ =============
Equity and liabilities
Equity
20 223 16 533 17 337
Share capital 13 173 136 718
(1 962 (2 583
Accumulated deficit (3 210 518) 415) 538)
Warrant reserve 78 651 29 783 78 651
Share-based payment reserve 264 671 - 220 729
Foreign currency translation
reserve (453 523) (476 345) (421 827)
-----------
Equity attributable to the owners 16 902 14 124 14 631
of the parent 454 159 733
----------- ------------ -------------
Non-controlling interests (10 067) (2 995) (7 484)
----------- ------------ -------------
16 892 14 121 14 624
Total equity 387 164 249
=========== ============ =============
Non-current liabilities
Environmental rehabilitation
liability 14 75 600 - 75 180
Lease liability 262 475 - -
----------- ------------ -------------
Total non-current liabilities 338 075 - 75 180
=========== ============ =============
Current liabilities
Trade and other payables 12 763 307 448 387 379 450
Working capital facility 11 85 465
----------- ------------ -------------
Total current liabilities 848 772 448 387 379 450
=========== ============ =============
18 079 14 569 15 078
Total equity and liabilities 234 551 879
=========== ============ =============
The financial statements were authorised and approved for issue
by the Board of Directors and authorised for issue on 29 November
2019.
AR VILJOEN
Director
29 November 2019
Consolidated Statement of Changes in Equity
For the 6 months ended 31 August 2019
Foreign
Share-based currency
Share Accumulated Warrant payment translation Non-controlling Total
capital deficit reserve reserve reserve Total interests equity
GBP GBP GBP GBP GBP GBP GBP GBP
Total equity
at 28
February
2018 10 853 631 (1 533 464) 29 783 - - 9 349 950 (370) 9 349 580
Loss for the
year (1 050 074) - - - (1 050 074) (7 445) (1 057 519)
Other
comprehensive
income - - (1 577) (421 827) (423 404) 332 (423 072)
Transactions
with owners:
Warrants
granted in
period (48 868) - 48 868 - - - - -
Share-based
payments in
the period - - 222 306 - 222 306 - 222 306
Issue of
shares 6 858 813 - - - - 6 858 813 - 6 858 813
Share issue
costs (325 858) - - - - (325 858) - (325 858)
----------- --------------- ----------- ------------ ------------ --------------- ---------------- ---------------
Total equity
at 28
February 14 631 14 624
2019 17 337 718 (2 583 538) 78 651 220 729 (421 827) 733 (7 483) 250
----------- --------------- ----------- ------------ ------------ --------------- ---------------- ---------------
Effect of
adoption of
IFRS 16 - (2 482) - - - (2 482) -
----------- --------------- ----------- ------------ ------------ --------------- ---------------- ---------------
1 March 2019
as restated 17 337 718 (2 586 020) 78 651 220 729 (421 827) 14 629 251 (7 483) 14 621 768
----------- --------------- ----------- ------------ ------------ --------------- ---------------- ---------------
Loss for the
period - (624 551) - - - (624 551) (2 562) (627 113)
Prior year
IFRS 16
adjustment - (2 428) (2 428) (2 428)
Other
comprehensive
income - - - 222 (31 697) (31 475) (21) (31 496)
Transactions
with owners:
Share-based
payments in
the period - - - 43 720 - 43 720 43 720
Issue of
shares 2 988 392 - - - - 2 988 392 - 2 988 392
Share issue
costs (102 937) - - - - (102 937) - (102 937)
----------- --------------- ----------- ------------ ------------ --------------- ---------------- ---------------
Total equity
at 31 August 16 902 16 892
2019 20 223 173 (3 210 518) 78 651 264 671 (453 523) 454 (10 067) 387
=========== =============== =========== ============ ============ =============== ================ ===============
Consolidated Statement of Cash Flows
For the 6 months ended 31 August 2019
Period ended Period ended Period ended
31 August 31 August 28 February
2019 2018 2019
(unaudited) (unaudited) (audited)
Note GBP GBP GBP
Cash flows from operating activities
(1 057
Loss before taxation (627 112) (431 921) 520)
Adjustments for:
Depreciation property, plant and
equipment 9 61 126 1 965 22 824
Share-based payments 43 720 - 205 962
Finance income (3 749) - (13 416)
Changes in working capital:
(Increase) in receivables (519 580) (101 737) (379 245)
(Increase) in inventory (1 087) (67 720) (26 222)
Increase / (decrease) in payables 384 405 - (119 708)
------------ ------------ ------------
(1 367
Net cash used in operating activities (662 278) (599 413) 325)
------------ ------------ ------------
Cash flows from investing activities
Finance income 3 749 - 13 416
Purchase of exploration and evaluation
assets 8 (578 252) (90 629) (570 767)
Purchase of property, plant and (4 901
equipment 9 (3 346 592) (1 200 677) 993)
------------ ------------ ------------
(5 459
Net cash used in investing activities (3 921 095) (1 291 306) 344)
------------ ------------ ------------
Cash flows from financing activities
5 682
Net proceeds from issue of shares 2 885 455 5 679 505 954
------------ ------------ ------------
Net proceeds from drawdown on
working capital facility 85 465
------------ ------------ ------------
Net cash generated from financing 5 682
activities 2 970 920 5 679 505 954
------------ ------------ ------------
Net (decrease)increase in cash (1 143
and cash equivalents (1 612 453) 3 788 786 715)
Cash and cash equivalents at the beginning 2 904
of the period 1 781 335 2 904 767 767
Foreign exchange differences (38 247) (40 324) 20 283
------------ ------------
Cash and cash equivalents at the 1 781
end of the period 130 635 6 653 229 335
------------ ------------ ------------
Notes to the consolidated financial statements
For the 6 months ended 31 August 2019
1. Corporate information and principal activities
AfriTin Mining Limited ("AfriTin") was incorporated and
domiciled in Guernsey on 1 September 2017, and admitted to the AIM
market in London on 9 November 2017. The company's registered
office is 18-20 Le Pollet, St Peter Port, Guernsey, GY1 1WH.
These financial statements are for the 6-month period ended 31
August 2019 and the comparative figures for the 6-month period
ended 31 August 2018 and for the year ended 28 February 2019 are
shown.
The AfriTin Group comprises AfriTin Mining Limited and its
subsidiaries as noted below.
AfriTin Mining Limited ("AML") is an investment holding company
and holds 100% of Guernsey subsidiary, Greenhills Resources Limited
("GRL").
GRL is an investment holding company that holds investments in
resource-based tin and tantalum exploration companies in Namibia
and South Africa. The Namibian subsidiary is AfriTin Mining
(Namibia) Pty Limited ("AfriTin Namibia"), in which GRL holds 100%
equity interest. The South African subsidiaries are Mokopane Tin
Company Pty Limited "Mokopane" and Pamish Investments 71 Pty
Limited "Pamish 71", in which GRL holds 100% equity interest.
AfriTin Namibia owns an 85% equity interest in Uis Tin Mine
Company Pty Limited "Uis Tin Mine". The minority shareholder in Uis
Tin Mine is The Small Miners of Uis who own 15%.
Mokopane owns a 74% equity interest in Renetype Pty Limited
"Renetype" and a 50% equity interest in Jaxson 641 Pty Limited
"Jaxson".
The minority shareholders in Renetype are African Women
Enterprises Investments Pty Limited and Cannosia Trading 62 CC who
own 10% and 16% respectively.
The minority shareholder in Jaxson is Lerama Resources Pty
Limited who owns a 50% interest in Jaxson.
Pamish 71 owns a 74% interest in Zaaiplaats Mining Pty Limited
"Zaaiplaats". The minority shareholder in Zaaiplaats is Tamiforce
Pty Limited who owns 26%.
AML owns 100% of Tantalum Investment Pty Limited, a company
containing Namibian exploration licenses EPL5445 and EPL5670 for
the exploration of tin, tantalum and other associated minerals.
As at 31 August 2019, the AfriTin Group comprised:
Equity holding
and voting Country
Company rights of incorporation Nature of Activities
Ultimate Holding
AfriTin Mining Limited N/A Guernsey Company
Greenhills Resources Limited
(1) 100% Guernsey Holding Company
AfriTin Mining Pty Limited
(1) 100% South Africa Group support services
Tantalum Investment Pty Tin & Tantalum
Limited (1) 100% Namibia Exploration
AfriTin Mining (Namibia) Tin & Tantalum
Pty Limited (2) 100% Namibia Exploration
Uis Tin Mine Company Pty Tin & Tantalum
Limited (3) 85% Namibia Exploration
Mokopane Tin Company Pty
Limited (2) 100% South Africa Holding Company
Tin & Tantalum
Renetype Pty Limited (4) 74% South Africa Exploration
Tin & Tantalum
Jaxson 641 Pty Limited (4) 50% South Africa Exploration
Pamish Investments 71 Pty
Limited (2) 100% South Africa Holding Company
Zaaiplaats Mining Pty Limited
(5) 74% South Africa Property Owning
(1) Held directly by AfriTin Mining Limited
(2) Held by Greenhills Resources Limited
(3) Held by AfriTin Mining (Namibia) Pty Limited
(4) Held by Mokopane Tin Company Pty Limited
(5) Held by Pamish Investments 71 Pty Limited
These financial statements are presented in Pound Sterling (GBP)
because that is the currency in which the Group has raised funding
on the AIM market in the United Kingdom. Furthermore, Pound
Sterling (GBP) is the functional currency of the ultimate holding
company, AfriTin Mining Limited.
2. Significant accounting policies
Basis of accounting
The interim financial statements have been prepared using
measurement and recognition criteria based on International
Financial Reporting Standards (IFRS and IFRIC interpretations)
issued by the International Accounting Standards Board (IASB) as
adopted for use in the EU. The interim financial information has
been prepared using the accounting policies which will be applied
in the Group's statutory financial statements for the year ended 28
February 2020 and which were applied in the Group's statutory
financial statements for the year ended 28 February 2019.
The Group has adopted the standards, amendments and
interpretations effective for annual periods beginning on or after
1 March 2019. Apart from IFRS 16, the adoption of these standards
and amendments did not have a material effect on the financial
statements of the Group. See Note 3.
The interim financial information for the six months to 31
August 2019 is unaudited and does not constitute statutory
financial information. The statutory accounts for the year ended 28
February 2019 are available on the Company's website. The auditors'
report on those accounts was unqualified.
The consolidated financial statements have been prepared under
the historical cost convention. The preparation of financial
statements in conformity with IFRS requires the use of certain
critical accounting estimates. It also requires management to
exercise judgement in the process of applying the Group's
accounting policies. The areas involving a higher degree of
judgement or complexity and areas where assumptions and estimates
are significant to the consolidated financial statements are
discussed in further detail in this note.
Going concern
These financial statements have been prepared on the basis of
accounting principles applicable to a going concern which assumes
the Company will be able to continue in operation for the
foreseeable future and will be able to realize its assets and
discharge its liabilities in the normal course of operations.
The Company has incurred operating losses to date and currently
has no source of consistent revenues. The ability of the Company to
continue as a going concern is dependent on the ability to raise
additional capital to explore and develop its mineral properties.
However, should additional capital not be available, the Company
may be unable to continue as a going concern.
The directors are confident of raising additional capital based
on market conditions and previous experience to continue as a going
concern. No adjustments have been made relating to the
recoverability and classification of recorded asset amounts and
classification of liabilities that might be necessary should the
combined group not continue as a going concern.
Critical accounting estimates and judgements
In the application of the Group's accounting policies, the
Directors are required to make judgements, estimates and
assumptions about the carrying amounts of assets and liabilities
that are not readily apparent from other sources. The estimates and
associated assumptions are based on historical experience and other
factors that are considered to be relevant. Actual results may
differ from these estimates.
The estimates and assumptions that have a significant risk of
causing a material adjustment to the carrying amounts of the assets
and liabilities within the next financial year are addressed
below.
Impairment of exploration & evaluation assets
Determining whether an exploration and evaluation asset is
impaired requires an assessment of whether there are any indicators
of impairment, including by reference to specific impairment
indicators prescribed in IFRS 6 "Exploration for and Evaluation of
Mineral Resources". If there is any indication of potential
impairment, an impairment test is required based on value-in-use of
the asset. The valuation of intangible exploration assets is
dependent upon the discovery of economically recoverable deposits
which, in turn, is dependent on future tin prices, future capital
expenditures and environmental, regulatory restrictions and the
successful renewal of licenses. The directors have concluded that
there are no indications of impairment in respect of the carrying
value of intangible assets at 31 August 2019 based on planned
future development of the projects and current and forecast tin
prices. Exploration and evaluation assets are disclosed fully in
Note 8.
3. Adoption of new and revised standards
Certain new standards, amendments and interpretations to
existing standards have been published that are mandatory for the
Group's accounting periods beginning after 1 March 2019. The only
standard which is anticipated to be significant or relevant to the
Group is:
IFRS 16 Leases
IFRS 16 introduces a single lease accounting model. This
standard requires lessees to account for all leases under a single
on-balance sheet model. Under the new standard, a lessee is
required to recognise all lease assets and liabilities on the
balance sheet; recognise amortisation of leased assets and interest
on lease liabilities over the lease term; and separately present
the principal amount of cash paid and interest in the cash flow
statement. The requirements of IFRS 16 extend to certain service
contracts, such as mining contractors in which the contractor
provides services and the use of assets, which may impact the
Group. The Group has applied the modified retrospective approach
where the cumulative effect of initially applying IFRS 16 is
recognised at the date of initial application. Below is a summary
of the impact upon adoption of IFRS 16 leases.
A right-of-use asset amounting to GBP292 301 and corresponding
lease liability relating to the corporate office building was
raised. Depreciation relating to this right-of-use asset of GBP43
646 was charged during the period and finance charges of GBP15 346
were raised on the lease liability during the period.
4. Segmental reporting
The reporting segments are identified by the management steering
committee (who are considered to be the chief operating
decision-makers) by the way that the Group's operations are
organised. As at 31 August 2019, the Group operated within two
operating segments, tin exploration activities in Namibia and South
Africa.
Segment results
The following is an analysis of the Group's results by
reportable segment.
South Africa Namibia Total
GBP GBP GBP
Period ended 31 August 2019
Results
Other income - - -
Associated costs (6 755) (61 145) (67 900)
Segmental loss (6 755) (61 145) (67 900)
============ ======== =========
South Africa Namibia Total
GBP GBP GBP
Year ended 28 February 2019
Results
Other income 26 782 - 26 782
Associated costs (13 623) (93 711) (107 334)
Segmental profit / (loss) 13 159 (93 711) (80 552)
============ ======== ==========
The reconciliation of segmental gross loss to the Group's loss
before tax is as follows:
Period ended Year ended
31 August 2019 28 February 2019
GBP GBP
Segmental loss (67 900) (80 552)
Unallocated costs (547 616) (990 384)
Finance income 3 749 13 416
Finance charges (15 346) -
========== ==================
Loss before tax (627 113) (1 057 520)
========== ==================
Unallocated costs mainly comprise corporate overheads and costs
associated with being listed in London.
Other segmental information
South Africa Namibia Total
GBP GBP GBP
As at 31 August 2019
Intangible assets - exploration 7 596
and evaluation 3 232 101 4 364 631 732
9 966
Other reportable segmental assets 50 268 9 915 995 264
Other reportable segmental liabilities (70 419) (565 563) (635 982)
Unallocated net assets - - (34 627)
------------ ---------- ----------
13 715 16 892
Total consolidated net assets 3 211 950 064 387
============ ========== ==========
As at 28 February 2019
Intangible assets - exploration 7 012
and evaluation 3 214 042 3 798 275 317
6 150
Other reportable segmental assets 89 103 6 061 366 469
Other reportable segmental liabilities (70 203) (286 546) (356 749)
1 818
Unallocated net assets - - 211
14 624
Total consolidated net assets 3 232 942 9 573 095 248
============ ========== ==========
Unallocated net assets are mainly comprised of cash and cash
equivalents which are managed at a corporate level.
5. Expenses by nature
The loss for the period has been arrived at after charging:
Period
Period ended ended Year ended
31 August 31 August 28 February
2019 2018 2019
GBP GBP GBP
Staff costs 248 572 185 561 519 823
Depreciation of property, plant
& equipment 61 126 2 176 22 824
Operating lease expense - - 20 332
Professional fees 145 412 26 537 75 076
Travelling expenses 63 778 37 778 105 939
Other costs 96 628 186 484 313 724
Auditor's remuneration - 8 969 40 000
------------- -----------
1 097
615 516 447 505 718
============= =========== =============
6. Taxation
The tax expense represents the sum of the tax currently payable
and deferred tax.
Period ended Period ended Year ended
31 August 31 August 28 February
2019 2018 2019
GBP GBP GBP
Factors affecting tax for the period:
The tax assessed for the period
at the Guernsey corporation tax
charge rate of 0%, as explained
below:
(1 057
Loss before taxation (627 113) (431 921) 520)
------------ ------------ ------------
Loss before taxation multiplied
by the Guernsey corporation tax
charge rate of 0%
Effects of:
Non-deductible expenses
Tax for the period
Accumulated losses in the subsidiary undertakings for which
there is an unrecognised deferred tax asset are GBP1 271 578
(August 2018: GBP 556 281) (February 2019: GBP842 560).
7. Loss per share
From continuing operations
The calculation of a basic loss per share of 0.10 pence (August
2018: loss per share of 0.11 pence) (February 2019: loss per share
of 0.23 pence), is calculated using the total loss for the period
attributable to the owners of the Company of GBP624 551 (August
2018: GBP428 951) (February 2019: GBP1 050 074) and the weighted
average number of shares in issue during the period of 599 566 233
(August 2018: 391 593 793) (February 2019: 465 473 041).
Due to the loss for the period, the diluted loss per share is
the same as the basic loss per share. The number of potentially
dilutive ordinary shares, in respect of share options, warrants and
shares to be issued is 48 566 727 (August 2018: 24 397 922)
(February 2019: 48 566 727). These potentially dilutive ordinary
shares may have a dilutive effect on future earnings per share.
On 18 October 2019, 21 930 000 share options were awarded to
directors and certain key employees in the Group. Please refer to
Note 15 for more details.
8. Intangible assets
Exploration and Computer
evaluation assets Software Total
GBP GBP GBP
6 140
As at 31 August 2018 6 140 243 - 243
Additions for the period - other
expenditure 480 138 - 480 138
Additions for the period - acquisition
of Tantalum 850 000 - 850 000
Reclassification to property,
plant and equipment (488 891) - (488 891)
Foreign exchange difference 30 827 - 30 827
----------- ---------- ----------
7 012
As at 28 February 2019 7 012 317 - 317
=========== ========== ==========
Additions for the period - other
expenditure 506 203 72 049 578 252
Foreign exchange difference 6 749 (586) 6 163
----------- ---------- ----------
As at 31 August 2019 7 525 269 71 463 7 596 732
=========== ========== ==========
The Company's subsidiary, Greenhills Resources Limited has the
following:
i) a 74% interest in Renetype Pty Limited ("Renetype") which
holds an interest in Prospecting Right 2205.
ii) an 85% interest in Guinea Fowl Investments 27 Pty Limited
("Guinea Fowl") which holds an interest in mining rights, ML129,
ML133 and ML134.
iii) a 50% interest in Jaxson 641 Pty Limited ("Jaxson") which
holds an interest in Prospecting Right 428.
iv) a 74% interest in Zaaiplaats Mining Pty Limited
("Zaaiplaats") which holds an interest in Prospecting Right
183.
The Company has a 100% interest in Tantalum Investment Pty
Limited ("Tantalum") which holds an interest in Exclusive
Prospecting License 5445 and Exclusive Prospecting License
5670.
9. Property, plant and equipment
Right-of-use
Mining asset asset -
under De-commissioning office Computer
Land construction asset building equipment Furniture Vehicles Total
Cost
As at 31
August 2018 13 014 1 521 943 - - 17 425 2 559 - 1 554 941
Additions for
the period -
other
expenditure - 3 538 930 78 168 - 49 661 71 231 88 902 2 826 892
Transfer from
exploration
and
evaluation
asset - 488 891 - - - - - 488 891
Foreign
exchange
differences 425 (53 993) (2 988) - (888) (2 556) (3 398) (63 398)
As at 28
February 2019 13 439 5 495 771 75 180 - 66 198 71 234 85 504 6 099 627
Additions for
the period -
other
expenditure - 3 280 764 - 292 301 33 098 17 392 - 3 623 555
Foreign
exchange
differences 75 737 420 (2 379) 100 253 478 (315)
As at 31
August 2019 13 514 8 777 273 75 600 289 922 99 396 88 880 85 982 9 430 566
Accumulated
Depreciation
As at 31
August 2018 - - - - 2 101 184 - 2 285
Charge for the
period - - - - 9 354 4 096 7 409 20 859
Foreign
exchange
differences - - - - (415) (164) (282) (861)
As at 28
February 2019 - - - - 11 040 4 116 7 127 22 283
Charge for the
period - - - 43 646 13 422 7 637 10 836 75 541
Foreign
exchange
differences - - - (157) (46) (41) (48) (292)
As at 31
August 2019 - - - 43 488 24 417 11 712 17 915 97 532
Net Book Value
As at 31
August 2019 13 514 8 777 273 75 600 246 434 74 979 77 168 68 067 9 333 036
As at 31
August 2018 13 014 1 521 943 - - 15 324 2 375 - 1 552 656
As at 28
February 2019 13 439 5 495 771 75 180 - 55 158 67 118 78 377 5 785 043
10. Trade and other receivables
31 August 31 August 28 February
2019 2018 2019
GBP GBP GBP
Trade receivables 32 440 34 408 42 463
Other receivables 177 528 87 507 83 615
VAT receivables 782 422 101 509 348 885
---------- ---------- ------------
992 390 223 424 474 963
========== ========== ============
Post reporting period, GBP444 926 worth of VAT receivables in
the above balance had been refunded by the Namibian tax
authorities.
11. Loans and borrowings
31 August 31 August 28 February
2019 2018 2019
GBP GBP GBP
Working capital facility (85 465) - -
---------- ---------- ------------
On 16 August 2019, a working capital facility of N$35,000,000
(c. GBP2.0 million) and a VAT facility for N$8,000,000 (c.
GBP456,000) was entered into between the Company's subsidiary,
AfriTin Mining Namibia Proprietary Limited and Nedbank Namibia.
The VAT Facility is secured by assessed/audited VAT returns
(refunds) which have not been paid by Namibia Inland Revenue.
For the working capital facility, the loan is repayable in full
on the date being 12months from the date of execution and Interest
accrues on the loan at a rate of JIBAR plus 3.658% (being
approximately 10.7%).
Both AfriTin, as the parent company of AfriTin Mining Namibia
Proprietary Limited, and Bushveld Minerals Limited ("Bushveld"), a
shareholder holding approximately 8% of the Company, have offered
surety for the loan to Nedbank as collateral in the form of a joint
suretyship from AfriTin and Bushveld.
12. Trade and other payables
31 August 31 August 28 February
2019 2018 2019
GBP GBP GBP
Trade payables 616 505 388 621 266 184
Other payables 109 335 46 550 110 716
Accruals 37 467 13 216 2 550
---------- ---------- ------------
763 307 448 387 379 450
========== ========== ============
13. Share capital
Number of ordinary
shares of no par
value issued and
fully paid Share Capital
GBP
Balance at 31 August 2018 519 588 525 16 533 136
Reversal of Share issue costs - excluding
warrants - 3 450
Share issue costs - fair value of
warrants - (48 868)
"Tantalum" Acquisition 25 000 000 850 000
Balance at 28 February 2019 544 588 525 17 337 718
Capital Raise - 22 May 2019 99 613 074 2 988 392
Share issue costs (102 938)
Balance at 31 August 2019 644 201 599 20 223 173
Authorised:
966 302 399 ordinary shares of no par value
Allotted, issued and fully paid:
644 201 599 shares of no par value
On 22 May 2019, AfriTin Mining Limited completed an equity
fundraising by way of a direct subscription of 99 613 074 ordinary
shares of no par value in the Company at a price of 3 pence per
share.
14. Environmental rehabilitation liability
31 August 31 August 28 February
2019 2018 2019
GBP GBP GBP
Opening balance 75 180 - -
Provision for the period - - 78 168
Foreign exchange differences 420 - (2 988)
---------- ---------- ------------
Closing balance 75 600 - 75 180
========== ========== ============
Provision for future environmental rehabilitation and
decommissioning costs are made on a progressive basis. Estimates
are based on costs that are regularly reviewed and adjusted
appropriately for new circumstances.
The rehabilitation provision represents the present value of
decommissioning costs relating to the dismantling and sale of
mechanical equipment and steel structures related to the Phase 1
Pilot Plant, the demolishing of civil platforms and reshaping of
earthworks. The provision is based on management's estimates and
assumptions based on the current economic environment. Actual
rehabilitation and decommissioning costs will ultimately depend
upon future market prices for the necessary rehabilitation works
and timing of when the mine ceases operation.
15. Events after Balance Sheet Date
Awarding of options
On 18 October 2019, 21 930 000 share options over ordinary
shares in the capital of the Company were awarded to directors and
certain key employees in the Group. The income statement charge
calculated according to the Black Scholes method will be GBP556 338
over the period of the options.
Convertible loan note
On 26 November 2019, AfriTin Mining Limited entered into an
unsecured convertible loan note agreement for a total amount of
GBP3.8 million of GBP100,000 each (the "Notes"). The Notes have a
term of 18 months and attract interest at a rate of 10% per annum
which is payable on the redemption or conversion of the Notes. The
Notes, including the total amount of accrued but unpaid interest,
are convertible at the conversion price of 4p per share. The Notes
can be redeemed at any time at the election of the Company, having
given 10 Business Days' notice of such intention, in whole or in
part, if not already converted by the Noteholder and subject to
applying an early redemption premium of 10%.
16. Related-party transactions
Balances and transactions between the Company and its
subsidiaries, which are related parties, have been eliminated on
consolidation and are not disclosed in this note.
Bushveld Minerals Limited ("Bushveld") is a related party due to
Anthony Viljoen, Chief Executive Officer being a Non-Executive
Director on the Bushveld Board. During the period, Bushveld charged
the Group GBP33 794 (August 2018: GBPnil) (February 2019: GBP22
477) for rent. At year end, the Group owed Bushveld GBP77 970.
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.
END
IR LLFFFLRLAFIA
(END) Dow Jones Newswires
November 29, 2019 07:31 ET (12:31 GMT)
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