TIDMSEFA
RNS Number : 4042L
Shefa Gems Ltd
30 April 2020
B"H
30 April 2020
Shefa Gems Ltd.
("Shefa Gems" or the "Company")
Full Year Results for the year ended 31 December 2019
Shefa Gems (LSE: SEFA), a company focused on advanced
exploration and development of multi-gemstone projects in Northern
Israel, is pleased to announce its full year results for the year
ended 31 December 2019.
2019 Highlights
Kishon Mid-Reach
-- Kishon Mid-Reach Zones 1 and 2 upgraded to an Inferred
Mineral Resource following Competent Person's Report ("CPR") update
- Gem Box suite has an approximate contained revenue of US$41/t
-- Technical Economic Evaluation ("TEE") completed, giving
strong endorsement of the quality and potential of Kishon Mid-Reach
project
-- Received an independent gemological expert opinion and
valuation of the precious gemstone suite from Dr Gavrielov Gila
-- Received highest grade bulk sampling results to date in the Kishon Mid-Reach Zone 2
-- Carmeltazite, found in the Carmel Sapphire(TM), recognised as a new mineral in nature
-- Discovered the first naturally occurring Vanadium metal hydride
-- Prospecting Licence (869C9) for Zone 1 renewed for 12 months
which led to the formal grant of a Certificate of Discovery
-- Exploration results from drilling and bulk sampling in the
Kishon Mid-Reach Zone 1 and 2 amounted to approximately 15,000
carats of gemstones
-- All exploration and prospecting permits renewed for a further
year, covering the Kishon catchment (including Kishon Mid-Reach
Zones 1, 2, 3), Mount Carmel and the Zevulun and Yizre'el valleys
and their margins
Corporate and Financial
-- Appointed Michael Rosenberg OBE as Chairman of the Board,
separating the roles of Chairman and Chief Executive Officer
-- Avi Taub, Chief Executive Officer of the Company, passed away following a short illness
-- Avi's son Yosef (Yossi) Itzhak Taub joined the Board as Director
-- Raised GBP1.0 million equity from new shareholders to fund its development activities
-- Conducted a 10 for one share split of Shefa Gems shares
traded on the Standard List of the London Stock Exchange to improve
liquidity in the shares
-- Granted a trademark for the Company's new name, Shefa Gems
Ltd(R) by the UK Intellectual Property Office
-- First jewellery collection using Shefa Gems gemstones titled
'Heaven on Earth' completed by renowned jewellery designer, Yossi
Harari
Post Period
-- Appointed Vered Toledo as Chief Executive Officer (CEO),
Yossi Itzhak Taub as Corporate Development Executive Officer, and
created a new Executive Committee
-- Awarded the Certificate of Discovery for the gemstone mine
development in the Kishon Mid-Reach, Zones 1
and 2 in March 2020 , a sign ificant step towards future commercial mining
-- Carmeltazite selected as Mineral of the Year 2018 by the
International Mineralogical Association (IMA)
Vered Toledo, CEO of Shefa Gems, said: "It has been a year of
excellent progress for Shefa Gems as we continued to execute our
twin strategy of developing our Kishon Mid-Reach project and
further establishing our 'Mine-to-Market' strategy. Evidence for
the potential of our unique gemstone project continues to mount,
demonstrated by multiple independent endorsements including the
International Mineralogical Association, reports published from
respected geologists, the TEE, and the updated CPR, which upgraded
the Kishon Mid-Reach project to an Inferred Mineral Resource. In
further testament to the rarity and potential value of our
gemstones, Carmeltazite, which forms part of the Carmel
Sapphire(TM), was declared Mineral of the Year by the IMA.
"Looking ahead, Shefa Gems is embarking on an exciting new phase
of its development following the award of the Certificate of
Discovery in March 2020, opening the path for mine development in
Zones 1 and 2 of the Kishon Mid-Reach. This takes us a significant
step closer to establishing the first and only precious gemstone
mine in Northern Israel, enabling us to commence mining and
subsequently begin producing revenue. We are also progressing our
'Mine-to-Market' strategy following the successful trial marketing
of the 'Heaven on Earth' jewellery collection which was produced
using gemstones recovered from the Kishon Mid-Reach and created in
collaboration with renowned designer Yossi Harari. Following the
positive reaction to this collection, we are seeking to widen our
commercial relationships with other organisations that can assist
in creating unique jewellery with our rare gemstones to be marketed
and sold worldwide.
"COVID-19 has impacted all of us, whether that is in our
personal or professional lives, and our priority is the well-being
and safety of our team. Whilst our operations continue largely
uninterrupted and the pandemic does not diminish the unique
opportunity of our precious stones project in any way, we cannot
know how long the outbreak will last and therefore we have taken
the prudent decision to reduce our costs where possible. We are
monitoring the situation closely and will update the market as
required should there be any further changes."
Enquiries
Shefa Gems Ltd
Michael Rosenberg, OBE - Chairman
www.shefagems.com +44 20 7938 4026
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VSA Capital Limited - Financial
Adviser
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Andrew Raca +44 20 3005 5000
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SI Capital Limited - Broker and
Strategic Adviser
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+44 20 3871 4038 / +44 1483
Nick Emerson and Jon Levinson 413500
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Notes to Editors
About Shefa Gems Ltd
Shefa Gems Ltd (LSE: SEFA) is an explorer and developer of
precious stones deposits operating in Northern Israel. Exploration
activity is managed by professionally skilled and technically
competent personnel and is accompanied by an international team of
geological experts with decades of proven experience in their
fields. It has two flagship projects, Mount Carmel and the Kishon
Reach.
With its international geological consultant team, Shefa Gems
has established a "Source to Sink" geological model and the
presence of a Target Mineral Assemblage of gemstones ("TMA Suite")
in both primary volcanic sources and in secondary alluvial deposits
lying within the Kishon catchment, on Mount Carmel and in the
Zevulun and Yizre'el valleys and their margins. The TMA suite
comprises Precious Stones (Diamond, rare natural moissanite,
sapphire, ruby, Carmel Sapphire(TM), garnet, hibonite, spinel,
ilmenite) and heavy minerals including zircon and rutile.
All exploration activities are conducted under international
standards and the internationally recognised SAMREC 2016 Code. Its
three permits, granted to it by the Commissioner of Mines at the
Ministry of Energy, Natural Resources Administration, Israel,
extend over an area of approximately 488,366 Dunams (48,836
hectares) that includes the Kishon River, the volcanic bodies on
Mount Carmel, the Zevulun and Yizre'el valleys and their
margins.
Alongside its exploration activities, the Company is building on
the launch of the "Heaven on Earth" jewellery collection and
developing the Company's "Mine to Market" strategy to promote
unique jewellery collections utilising Shefa Gems' suite of
precious gemstones. Shefa Gems initiated a trial marketing
initiative in collaboration with Yossi Harari a world-renowned
jewellery designer with 30 years in the trade and three-time winner
of the Couture Design Award. The handmade jewellery is created from
24 Karat gold, 'gilver' (Harari's own trademarked metal alloy that
combines oxidized silver and 24 Karat gold) and Shefa Gems'
precious gemstones. The gemstones used include the Carmel
Sapphire(TM), Natural Moissanite(TM), black spinel, ilmenite,
garnet, sapphire, hibonite and ruby. The jewellery was handcrafted
using ancient goldsmithing techniques and developed in Yossi
Harari's atelier in Istanbul.
The exclusive "Heaven on Earth" collection is now available to
view online on the website of the designer Yossi Harari at:
https://www.yossiharari.com/collections/heaven-on-earth-1
The Company upholds environmental values and protects the nature
in the areas where it operates, cooperating fully with all
authorities.
For further information please visit the website at
www.shefagems.com
Overview
It has been a year of strong progress for Shefa Gems as the
Company took significant steps towards its goal of developing
Israel's first precious gemstone mine. During the year, the Company
delivered a number of key milestones including the completion of
the TEE report, an independent valuation of the precious gemstones,
the completion of bulk sampling in Zone 2, and receiving
international recognition for Carmeltazite, a new mineral in
nature, discovered by Shefa Gems. In addition, the exploration
results to date from bulk samples in Zones 1 and 2 amounted to
approximately 15,000 carats of gemstones.
The Company's success throughout the year culminated in two
landmark developments. Firstly, the release of an updated CPR,
which upgrades Zones 1 and 2 of the Kishon Mid-Reach to an Inferred
Mineral Resource. Secondly, post period, the award of the
Certificate of Discovery for the development of its gemstone mine
in the Kishon Mid-Reach, Zones 1 and 2. This landmark certificate,
awarded by the Quarries and Mines Branch of the Ministry of
National Infrastructures of the State of Israel, signals the
beginning of the move from pure exploration to becoming a
commercial mining, revenue generating company.
Operational Review
Updated CPR - Maiden resource for Kishon Mid-Reach project
The Kishon Mid-Reach Zone 1 and Zone 2 has been upgraded to an
Inferred Mineral Resource following the completion of the CPR
update in December 2019. Significantly, the report concludes that
the Company's overall Gem Box suite is estimated to have a
contained revenue of US$41/t. This is led by the Carmel
Sapphire(TM), which due to its high intrinsic value and the
presence of large stones, is valued at US$35/t. A contained revenue
of US$41/t is considerably higher than the project's estimated
operating cost budget over the Life of Mine ("LoM") of US$26/t,
with the potential to be as low as US$10-15/t, as published in the
TEE announced in February 2019. This contained revenue also
excludes any margin the Company will gain from its multi-channel,
vertically integrated, marketing strategy and premium attracted to
gems originating from the Holy Land.
The CPR was prepared by Creo Design (Pty) Ltd ("Cre") in
accordance with the "South African Code for Reporting of
Exploration Results, Mineral Resources and Mineral Reserves"
(SAMREC Code), as amended in 2016. The full CPR is available on the
Shefa Gems website.
Technical Economic Evaluation report
As stated previously, in February 2019, an independent TEE
report for the potential first mine of the Kishon Mid-Reach project
in Zone 1 was completed. The report places the mine in Kishon
Mid-Reach Zone 1 at the lower end of the cost curve and provides a
base case for the work and capital costs of bringing the Kishon
Mid-Reach project into production.
A summary of the key points are as follows:
-- The mine will be able to process 1.5 Mt of gravel over an
11-year LoM, the overburden removed would be 1.8 Mt;
-- The capital expenditure for the development of the mine using
new equipment has been estimated at US$11.30 million or US$7.5
million through contract mining;
-- Operating cost budget over the LoM estimated at US$26/t
processed or US$27/t processed through contract mining; and
-- Potential to halve unit operation cost to US$10-15/t with
small investment in machinery to double processing capacity from
50tph to 100tph.
Independent valuation of gemstones
In addition to the updated CPR and the TEE report, Shefa Gems
received an independent valuation of its gemstone suite from expert
gemmologist, Dr Gavrielov who has over 40 years of experience in
the appraisal and purchase of precious stones for use in jewellery.
The report included valuations of US$10,000 and US$7,000 per carat
for Natural Moissanite(TM) (crystals rough till 4mm) and Blue
Carmel Sapphire(TM) respectively. The Natural Moissanite(TM) found
by the Company, is the largest in both volume and size ever found
globally (single crystals to >4mm). It was also noted that the
rarity, location and limited supply all adds significant value to
the Gem Box suite of gemstones. The assessment provides a
professional opinion regarding the value of the suite of precious
stones found in exploration activity carried out by the
Company.
Shefa Gems works with internationally respected geologists in
the exploration field, who have global proven success in the
discovery, exploration and development of diamond and precious
stones mines. This includes Professor Bill Griffin from the ARC
Centre of Excellence for Core to Crust Fluid Systems, Macquarie
University, Australia, and his research team, in which Shefa Gems
collaborated with to publish several scientific articles during the
last year.
New discoveries
Carmeltazite
Carmeltazite, found in Shefa Gems' gemstone, the Carmel
Sapphire(TM) , was classified as a newly discovered mineral by the
International Mineralogical Association Commission on New Minerals,
Nomenclature and Classification in early 2019. It was then selected
as Mineral of the Year 2018 by the IMA. The Carmel Sapphire(TM) is
not found anywhere else in the world.
Discovery of the first naturally occurring Vanadium metal
hydride
Shefa Gems discovered the first naturally occurring Vanadium
metal hydride. Detailed in a report titled, Discovery of the first
natural hydride, released in April 2019 by W.L. Griffin, the
discovery is significant because the metal is only stable in
extremely oxygen-depleted environments, and this has not previously
been found on Earth. The findings provide important evidence and
deepen the understanding of the evolution of the magmatic activity
beneath Mt Carmel which eventually led to the formation of the gem
mineral association now being commercially developed by Shefa Gems.
As the Company continues to build and deepen its knowledge of the
region and gem-forming process, this information will benefit
future exploration.
Zone 1 - Progressing to trial mining with Certificate of
Discovery
The Company has taken a major step towards trial mining in Zone
1 with two notable developments in recent months. The updated CPR,
which upgraded Zones 1 and 2 to an Inferred Mineral Resource, as
announced in December 2019. On 17 March 2020, Shefa Gems was
awarded a Certificate of Discovery for Zones 1 and 2. With these
developments, alongside the Company's exploration progress through
the year, there has been a notable shift in the Kishon Mid-Reach
project from the pure exploration phase to the gemstone mine
development phase. This will support Shefa Gems to continue
advancing towards trial mining during 2021. The exact timing of
commencement remains dependent on the speed of processing these
submissions by the relevant authorities.
Zone 2 - Bulk sampling completed and a Certificate of Discovery
received
Shefa Gems made excellent progress with the completed excavation
of four new bulk samples and one mini bulk sample (weight 37
tonnes) from target gravel horizons in the Kishon Mid-Reach Zone 2.
During the period, following the processing and analysis of bulk
samples, the Company received its highest-grade sample results to
date in Zone 2 of Kishon Mid-Reach.
One sample yielded a record Target Mineral Assemblage ("TMA")
grade of 467 carats per hundred tonnes (cpht). For comparison, the
aggregate results from the first five bulk samples from the
northern part of Kishon Mid Reach Zone 2, as announced on 31
January 2019, was 135 cpht, and the average TMA grade assumed in
the Technical and Economic Evaluation of Zone 1 was 153 cpht.
During the period, a total of 49 drilling surveys (390 meters
drilled), 30 bulk and mini bulk samples were collected from the
Kishon Mid Reach Zone 2 and 6,094 tonnes of gravel were excavated.
As published in the updated CPR, a total of 3,840 tonnes were
treated (25 bulk samples) and 6,853.11 carats of TMA found. The
operations were conducted on time and within the expected budget.
The remaining samples collected, are undergoing treatment and
analysis in the Company's operational site in Akko.
On 17 March, 2020 the Company received the Certificate of
Discovery for both Zones 1 and 2 in the Kishon Mid-Reach, based on
the mineralogical results achieved so far from Zone 2.
Preparing for exploration in Zone 3
Following the excellent progress and encouraging results from
exploration campaigns in Zone 1 and Zone 2, Shefa Gems is focused
on expanding its efforts in Zone 3. The Company is collecting and
analysing all the data from this area and based on the results,
together with the international geological consultant team, the
Company will decide whether to prepare further resource delineation
drilling campaigns in Zone 3 during 2020.
'Heaven on Earth' jewellery collection
Shefa Gems initiated a trial marketing initiative in
collaboration with world-renowned jewellery designer and three-time
winner of the Couture Design Award, Yossi Harari, to create the
'Heaven on Earth' jewellery collection.
T he 31-piece collection was completed in February 2019. It was
created from 24 Karat gold, 'gilver' (Harari's own trademarked
metal alloy that combines oxidized silver and 24 Karat gold) and
Shefa Gems' precious gemstones. The collection included the Carmel
Sapphire(TM), Natural Moissanite(TM), black spinel, ilmenite,
garnet, sapphire, hibonite and ruby. The jewellery was handcrafted
using ancient goldsmithing techniques and developed in Yossi
Harari's atelier in Istanbul.
The collaboration with Yossi Harari forms part of Shefa Gems'
'Mine-to-Market' development strategy, which includes exploration,
mining, and designing and selling jewellery pieces containing its
gemstones. It is encouraging that since the launch, Shefa Gems has
received wide interest from jewellery manufacturers, retailers and
sales distribution channels, which the Company will look to utilise
going forwards.
Renewal of Exploration and Prospecting permits and Prospecting
Licences
The Ministry of Energy, Natural Resources Administration, Israel
renewed a number exploration and prospecting permits of the Company
for a period of 12 months. In January 2019, two of the Company's
prospecting permits were renewed, covering a total of 440,455
Dunams (44,045 hectares). In July 2019, Exploration Permit 869B11
was renewed. 869B11 covers a total of 173,636 Dunams (17,363
hectares). The Company's first Prospecting Licence, over its
alluvial exploration target, the Kishon Mid-Reach Zone 1 Project,
was renewed in August 2019. Post period, in February 2020 its
prospecting permit Carmel (837A13) has been renewed, covering a
total of 314,478 Dunams (31,447 hectares), by the Ministry of
Energy, Natural Resources Administration, Israel.
Shefa Gems has three permits and licenses in total. In addition
to permits Carmel 837A13, the Company has exploration permits
869B11 covering 173,636 Dunams (17,363 hectares), and prospecting
license 869C10 that covers an area of 252 Dunams (25.2 hectares) in
the Kishon Mid-Reach Zone 1. The three permits extend over an area
of approximately 488,366 Dunams (48,836 hectares) that includes the
Kishon River, the volcanic bodies on Mount Carmel, the Zevulun and
Yizre'el valleys and their margins - Tivon-Alonim Hills and
Nazareth range.
Award of Certificate of Discovery
In March 2020, the Quarries and Mines Branch of the Ministry of
National Infrastructures of the State of Israel awarded Shefa Gems
a Certificate of Discovery for the development of its gemstone mine
in the Kishon Mid-Reach, Zones 1 and 2. The Inspector of Mines
recognised the significance of Shefa Gem's unique Carmel
Sapphire(TM) gemstone to the commercial feasibility of the project.
The Company must file an initial application for mining rights
within one year of grant of the Certificate of Discovery. It is a
landmark development for Shefa Gems and the culmination of the
Company's successful exploration activities and market analysis. It
brings the Company closer to establishing Israel's first and only
precious gemstone mine and signals the beginning of the process
towards future commercial mining.
Corporate Review
In June 2019, the Company changed its name to Shefa Gems Ltd,
and in July 2019, the UK Intellectual Property Office granted a
trademark for the name, Shefa Gems Ltd(R) . The change of name
aligns with the Company's 'Mine-to-Market' strategy and its goal to
create a global brand for its rare gemstones discovered in the
Kishon Mid-Reach area.
In addition, the Company has been seeking to address the lack of
liquidity in the shares of Shefa Gems and following recommendations
from its advisors, the Board of Directors resolved to a subdivision
("share split") of Shefa Gems' shares traded on the Standard List
of the London Stock Exchange. The Company conducted a 10 for one
share split.
Board changes
Several changes have been made to the board to ensure the
Company adheres to high corporate governance standards. Michael
Rosenberg, OBE, previously an External Director and Independent
Non-Executive Director of Shefa Gems, was appointed as
Non-Executive Chairman of the Company, effective from 1 May
2019.
It was with great regret and sadness that the Company announced
in October, former Chief Executive Officer (CEO), Avi Taub, had
passed away following a short illness. Avi's vision and dedication
played a huge role in the development of Shefa Gems and he will be
sorely missed.
Post period, in January 2020, Shefa Gems appointed Vered Toledo
as CEO of the Company. Vered worked with the late Avi Taub on the
development of the Company's exploration project since its
inception some 21 years ago. Vered was previously Shefa Gems' Chief
Operations Officer (COO).
Yosef (Yossi) Itzhak Taub has been appointed as Corporate
Development Executive Director and the Board of Directors created a
new Executive Committee. The Board of Directors has appointed an
Executive Committee to deal with the day-to-day management of the
Company's affairs. The initial members are Michael Rosenberg, OBE,
(Chairman), James Campbell (Non-Executive Director), Vered Toledo
(CEO), Yosef Itzhak Taub (Corporate Development Executive Director)
and David Ben David (CFO).
Financial Review
The launch of the 'Heaven on Earth' jewellery collection, and
the subsequent interest the Company received, provided a useful
test market for the potential value that can be obtained from Shefa
Gems' gemstones. The Company is therefore pleased to note that
sales of items in the collection were made in the period amounted
to TNIS 254 (US$72,000).
Under the agreement between the Company and Yossi Harari,
regarding the Company's first jewellery collection, after
reimbursing the Company's expenses incurred in direct connection
with the collection, the profits resulting from the sale of the
jewellery will be divided equally between the Company and Yossi
Harari.
In 2019, the Company recorded a comprehensive loss for the
period, of 7,929 TNIS (in thousands) (2018: TNIS 6,009 profit)
equating to a loss per share of NIS 0.049 (2018: 0.0431 profit).
The loss was attributed to general and administrative expenses, and
financing expenses due to adjustment of the value of a financial
liability at fair value. In addition, a reduction in the value of
the Company's assets for exploration and evaluation of precious
stones was made. At the end of the year, the Company's cash and
cash equivalents stood at TNIS 6 (2018: TNIS 209). General and
administrative expenses in 2019 decreased to TNIS 3,123 (2018: TNIS
3,410)
Placing and Subscription for GBP1 million
As announced in May 2019, Shefa Gems raised GBP1.0 million
(before expenses) from new shareholders through a subscription and
placing of 25,000,000 new ordinary shares of 0.10 NIS each in the
Company at an issue price of 4 pence per share in May. The new
Shareholders include a mixture of specialist institutional
investors and sophisticated High Net Worth investors who are
attracted to the potential risk/returns from advanced to
development stages of the natural resource and mining projects.
The COVID-19 Pandemic
The COVID-19 outbreak has impacted everyone, but for Shefa Gems
it does not change the opportunity that exists for our unique
precious stones mine. Nevertheless, Shefa Gems has taken the
prudent decision to reduce costs where possible including certain
restructuring whilst ensuring that all concerned are as safe as
possible.
As stated above, in March 2020, the Company received a
Certificate of Discovery from the Ministry of Energy in Israel. The
Company's recent efforts revolve around working with the various
authorities in order to advance the planning and regulation
procedures that will enable it to receive a mining license. The
Company does not know at this point what the effects of the
coronavirus will be on the time schedule for advancing and
receiving the necessary permits and approvals for the mining
license and assumes that there will be minor delays in the
scheduling that are not within the Company's control.
Outlook
Following another excellent year of progress, the Company's
primary focus for 2020 is to progress planning towards the
development of its mine and continuing to establish its
'Mine-to-Market' strategy. The award of the Certificate of
Discovery for Zones 1 and 2 is a landmark development for Shefa
Gems. It is a significant step towards the aim of commencing trial
mining in 2021 and establishing the first and only precious
gemstone mine in Israel and consequently begin producing
revenue.
Target 2020 Milestones:
-- Continue mine planning procedures with the Israel Lands
Authority and other relevant planning and statutory
institutions
-- Progress with a mining plan that demonstrates the commercial
feasibility of the Kishon Mid-Reach Project
-- Prioritise the target areas of the volcanic bodies (primary
source) which are covered by the exploration and prospecting
permits
-- Complete the treatment and analysis of the remaining bulk
samples in Zone 2, expected to be concluded within six months
-- Expand efforts in Zone 3, collect and analyse data from this
area and decide whether to prepare further resource delineation
drilling campaigns in Zone 3 during 2020
-- Further develop the 'Mine-to-Market' strategy by leveraging
the success of the 'Heaven on Earth' jewellery collection and by
building commercial relationships with organisations that can
assist in creating unique jewellery with our rare gemstones from
the land of Israel to be marketed and sold worldwide
SHEFA GEMS LTD. (Formerly Shefa Yamim A.T.M. LTD.)
STATEMENTS OF FINANCIAL POSITION
NIS in thousands
December 31,
2019 2018
------- -------
ASSETS
Non-Current Assets:
Fixed assets, net 1,494 1,736
Assets in regard to usage rights 1,751 - . -
Loans to top-co 1,116 2,494
Interested party 77 77
Assets for exploration and evaluation
of precious stones 60,628 59,128
------- -------
Total non-current assets 65,066 63,435
------- -------
Current Assets:
Cash in foreign currency 6 209
Short-term deposit in bank 14 - . -
Clients 51 - . -
Receivables 145 779
------- -------
Total current assets 216 988
------- -------
Total Assets 65,282 64,423
======= =======
EQUITY AND LIABILITIES
Equity 56,422 59,544
------- -------
Non-current Liabilities:
Long-term loans from interested party
and others - . - 560
Financial lease 1,492 - . -
Liability for severance pay 164 138
Options convertible to shares 1,120 564
------- -------
Total Non-current Liabilities 2,776 1,262
------- -------
Current Liabilities:
Short-term credit from bank and others 762 456
Trade payables 1,071 1,368
Interested parties 211 114
Other accounts payable 1,114 907
Liabilities at fair value 1,792 - . -
Loans convertible to shares 1,134 772
------- -------
Total current liabilities 6,084 3,617
------- -------
Total Equity and Liabilities 65,282 64,423
======= =======
SHEFA GEMS LTD. (Formerly Shefa Yamim A.T.M. LTD.)
STATEMENTS OF COMPREHENSIVE PROFIT (LOSS)
NIS in thousands (except for per share profits (losses)
,For the Year Ended December
31
2019 2018 2017
--------- ---------- ----------
Costs and expenses
General and administrative expenses (3,123) (3,410) (541)
Amortization of assets for exploration (2,409) - . - - . -
--------- ---------- ----------
Operating loss (5,532) (3,410) (541)
Other expenses, net (1,023) - . - - . -
--------- ---------- ----------
Loss prior to financing (6,555) (3,410) (541)
Financial expenses (1,534) (218) (15,954)
Financial income 160 9,637 237
--------- ---------- ----------
Financial income (expenses), net (1,374) 9,419 (15,717)
--------- ---------- ----------
Profit (Loss) for the year and
comprehensive profit (loss) for
the year (7,929) 6,009 (16,258)
========= ========== ==========
Basic and diluted income (loss) (0.049) *0.0431 *(0.170)
per share (in NIS)
========= ========== ==========
.Subsequent to the split, an adjustment of the income (loss) per
share was performed*
SHEFA GEMS LTD. (Formerly Shefa Yamim (A.T.M.) LTD.)
STATEMENT OF CHANGES IN EQUITY
NIS in thousands
Capital
Reserve
Capital from
Additional Reserve Transactions Total Equity
Paid-in Receivables for with Attributed
Share Capital, in Regard Share-Based Interested Accumulated to
Capital net to Shares Payments Party Deficit Shareholders
-------- ----------- ------------ ------------ ------------- ------------ -------------
Balance as of
January
1, 2017 9,387 78,626 - . - 5,291 6,312 (50,796) 48,820
- . -
Comprehensive
Loss
for the year - . - - . - - . - - . - - . - (16,258) (16,258)
Issuance of
shares *4,518 * 14,339 - . - - . - - . - - . - 18,857
Share based
payment - . - - . - - . - 292 - . - - . - 292
Receipts for
issue
of shares
during
2012 - . - 777 - . - - . - - . - - . - 777
----------- ------------
Balance as of
December
31, 2017 13,905 93,742 - . - 5,583 6,312 (67,054) 52,488
- . -
Comprehensive
Income
for the year - . - - . - - . - - . - - . - 6,009 6,009
Issuance of
shares 319 595 - . - - . - - . - - . - 914
Share based
payment - . - - . - - . - 133 - . - - . - 133
------------
Balance as of
December
31, 2018 14,224 94,337 - . - 5,716 6,312 (61,045) 59,544
- . -
Comprehensive
Loss
for the year - . - - . - - . - - . - - . - (7,929) (7,929)
Issuance of
shares 3,006 1,960 (205) - . - - . - - . - 4,761
Share based
payment - . - - . - - . - 46 - . - - . - 46
------------
Balance as of
December
31, 2019 17,230 96,297 (205) 5,762 6,312 (68,974) 56,422
======== =========== ============ ============ ============= ============ =============
Net of issuance expenses and fees in the amount of approximately
NIS 4,470 thousand*
SHEFA GEMS LTD. (Formerly Shefa Yamim (A.T.M.) LTD.)
STATEMENTS OF CASH FLOWS
NIS in thousands
,For the Year Ended December
31
2019 2018 2017
--------- ---------- ----------
Cash flows from operating activities:
Profit (Loss) for the year (7,929) 6,009 (16,258)
Appendix A - Adjustments required to
reconcile profit (loss) for the year
to net cash provided by (used in) operating
activities 5,209 (9,931) 17,1140
Net cash provided by (used in) operating
activities (2,720) (3,922) 856
--------- ---------- ----------
Cash flows from investing activities:
Purchase of fixed assets (395) (391) (531)
Consideration from sale of fixed assets - . - 55 - . -
Deposits (14) 173 - . -
Investment in exploration and evaluation
assets (2,161) (3,541) (4,375)
Loan repaid (rendered) to the top-co 253 (84) (1,177)
Interest received - . - - . - 188
Net cash used in investing activities (2,317) (3,788) (5,895)
--------- ---------- ----------
Cash flows from financing activities:
Consideration received for issuance of
share capital and options (including
additional capital), net 3,575 908 137
Increase in deferred issuance expenses - . - - . - (4,707)
Receipt (Repayment) of credits from banks
and others, net 103 (2) (205)
Receipt (Repayment) of loans from interested
parties, net (674) (111) 446
Repayment of fund in regard to leasing (299) - . - - . -
Liabilities to shareholders - . - 685 - . -
Receipt of loans convertible to shares 2,636 - . - 16,611
Repayment of long-term loans - . - (25) (40)
Interest paid (334) (106) (458)
Net cash provided by financing activities 5,007 1,349 11,784
--------- ---------- ----------
Linkage differences in regard to cash
and cash equivalents (173) 81 (257)
--------- ---------- ----------
Increase (Decrease) in cash and cash
equivalents (203) (6,280) 6,488
Cash and cash equivalents at the beginning
of the year 209 6,489 1
--------- ---------- ----------
Cash and cash equivalents at the end
of the year 6 209 6,489
========= ========== ==========
SHEFA GEMS LTD. (Formerly Shefa Yamim (A.T.M.) LTD.)
STATEMENTS OF CASH FLOWS
NIS in thousands
APPIX A For the Year Ended December
31,
Adjustments required to show the cash flows 2019 2018 2017
from current operations:
--------- ---------- ---------
Expenses (Income) not involving cash flows:
Depreciation * 49 54 60
Share based payment 11 25 46
Capital mobilization fees 414 - . - - . -
Amortization of assets for exploration 2,409 - . - - . -
and evaluation of precious stones
Amortization of a loan to an interested 1,116 - . - - . -
party
Finance expenses (income), net 1,374 (9,419) 15,717
--------- ---------- ---------
5,373 (9,340) 15,823
--------- ---------- ---------
Changes in asset and liability items:
Increase in clients (51) - . - - . -
Decrease (Increase) in receivables 376 (.169) (64)
Increase (Decrease) in trade payables (374) 121 1,403
Increase (Decrease) in liability to an
interested party (296) (242) - . -
Increase (Decrease) in other accounts payable 181 (301) (48)
--------- ---------- ---------
(164) (591) 1,291
--------- ---------- ---------
5,209 (9,931) 17,114
========= ========== =========
* Net of depreciation encumbered on the assets for exploration
and evaluation of precious stones.
APPENDIX B For the Year Ended December
31,
Significant non-cash flow operations: 2019 2018 2017
---------- --------- ---------
Accounts payable in regard to assets for
exploration and evaluation of precious stones 765 428 1,550
========== ========= =========
Fixed assets in regard to assets for exploration
and evaluation of precious stones 464 - . - - . -
========== ========= =========
Usage rights assets in regard to assets
for exploration and evaluation of precious 364 - . - - . -
stones
========== ========= =========
Loan for acquisition of fixed assets - . - 124 240
========== ========= =========
Loans assigned to capital 1,166 - . - 20,518
========== ========= =========
Loan from interested parties that is assigned
to capital 3- - . - 1,659
========== ========= =========
Balance from a supplier assigned to capital 60 223 1,152
========== ========= =========
Payables in regard to deferred issuance
expenses - . - - . - 742
========== ========= =========
Assignment of a receivable balance from
the chairman of the board of directors to
the top-co - . - - . - 640
========== ========= =========
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
FR UKSARRVUSUUR
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April 30, 2020 02:00 ET (06:00 GMT)
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