Back to all announcements

DJ NQ Minerals PLC Half-year Report

TIDMNQMI

RNS Number : 3352L

NQ Minerals PLC

30 September 2016

NQ Minerals Plc ("NQ" or "the Company")

Interim results for the six months ended 30 June 2016

NQ Minerals PLC (ISDX: NQMI), an Australia-based exploration and mining company, today announces its interim results for the six months ended 30 June 2016.

Highlights:

NQ is focused on two exploration projects known as Ukalunda and Square Post, in North Queensland, Australia. These projects are both located in prospective mining districts that form part of the well-known Charters Towers Gold Province, where more than 20 million ounces of gold has been mined.

Drilling results conducted during the period along with extensive, ongoing geological evaluation have demonstrated a greatly increased gold potential at Ukalunda, in addition to the well-established, high-grade silver potential.

Given the encouraging drill results, the Company applied for and was granted an additional tenement at Ukalunda that increases the size of the project area by over 75% to 132 km(2).

The Company now has over 15km(2) of the epithermal gold prospective Drummond Basin sequence which hosts the Wirralie gold mine 25km to the south where over 1.1 million ounces of gold have been produced to date.

3D computer modelling of drill results combined with aeromagnetic survey results has highlighted a number of new important drill targets.

Australian Government approval has been granted for a further drilling program which is planned to commence in 2H 2016, towards the goal of defining resources to JORC Code standards

Post-Period End Highlights:

Mr. Roger Jackson, an Australian Geologist and Mine Developer with over 25 years of experience in Mining and Exploration in Australia was appointed to the NQ board. He has been a founding director of a number of ASX and private Mining and Exploration companies, including Ark Mines Ltd, EDMS Ltd, Augur Resources Ltd, Hillgrove Gold Mines, Hellyer Gold Mines and Red Robin Resources. While an executive with these companies he assisted in the raising of over $100 million in equity capital.

Mr. Allen Ambrose, a licensed Registered Professional Geologist with over three decades of exploration and mining industry experience was appointed to the NQ Board. While an executive with junior exploration companies he raised over $180 million in equity capital in companies that discovered over $50 billion of contained metals under his direction. Mr. Allen Ambrose is a Director and founder of Minera Andes Inc. that was combined with NYSE-listed McEwen Mining in January 2012. Mr. Ambrose remains a key director of McEwen Mining.

NQ signed an agreement with White Fox Ventures ("White Fox") for White Fox to subscribe for new shares to raise USD$2.35 million in seven tranches until 1 April 2017. This follows from the first tranche of $150,000 investment in the Company made by White Fox as announced by the Company on 25 August 2016.

On 26 September 2016, NQ Minerals placed 10m ordinary shares in the Company at a price of 6 pence per share raising GBP GBP600,000.

Contact:

 
Company 
 
NQ Minerals plc 
Brian Stockbridge            +44(0) 7876 888 011 
 
  Corporate advisor 
 
Alfred Henry Corporate 
 Finance Limited 
Nick Michaels / Jon Isaacs   +44 (0) 207 251 3762 
 
  Investor Relations 
 
Kris Kottmeier 
VP Corporate Development     +44 (0) 20 3637 6522 
                              +1 (604) 506 2502 
                              Email: invest@nqminerals.com 
 

Non Executive-Chairman's Statement

I am delighted to present the results for NQ Minerals plc, for the six months ended 30 June 2016. The Company has progressed well with its drilling program, has found a number of important new drill targets (including some new gold discoveries) and has increased its tenement area by over 75%. The Company has also made two key director appointments as we move to the next stage of the Company's development. Additionally, NQ has raised GBP600,000 and has announced the raising of $2.5m in tranches up to April 2017.

The appointment of additional board members will be made to assist us in advancing our various projects and we remain focused on creating long-term sustainable value for our shareholders.

Projects

NQ is focused on two exploration projects known as Ukalunda and Square Post, in North Queensland, Australia. These projects are both located in prospective mining districts that form part of the well-known Charters Towers Gold Province, where more than 20 million ounces of gold has been mined.

Ukalunda

The Ukalunda tenement lies midway between the Lake Dalrymple/Burdekin Dam and the historic Wirralie gold mine, which has produced 1.1 million ounces of gold to date. The Ukalunda project contains multiple zones of mineralisation that are very similar to mineralised zones discovered in mining districts around the world that host major ore bodies. This suggests that one or more major ore bodies may be present at NQ Mineral's Ukalunda property. Historical wide-ranging exploration has been carried out at the Ukalunda permit area, which discovered numerous zones rich with gold, silver and associated base metals mineralisation.

Square Post

The Square Post tenement lies close to the Flinders Highway, 10 kilometres north north east of Mingela and 50 kilometres south of Townsville. Square Post's permit consists of 47 sub-blocks covering an area of around 168km2 and is considered to be under-explored. Focus at Square Post is on breccia-hosted mineralisation at the Breccia Knob zone, and on quartz-vein hosted mineralisation at the Blue Doe-June Ellen zone.

Outlook

The six months to 30 June 2016 has been a very successful period for NQ Minerals. The success of the drilling program and the appointment of new experienced directors subsequent to the period end have positioned the Company very well for the next stage of its development.

Our short-term strategy remains at increasing value by targeted exploration and the easiest way to add value is by drilling. The Directors consider that NQ Minerals has a distinct advantage arising from the previous exploration work that has been carried out on the tenements. This has a resulted in a valuable database that will allow the team to target spending to achieve the most efficient exploration and improve the chances of success.

The Directors consider that 2016 and 2017 are likely to see continued news flow from both the Ukalunda and Square Post projects as exploration proceeds and the Directors will continue to evaluate other projects that will allow shareholder value to be enhanced.

I am very optimistic about the Group's growth potential and we look to the future with significant confidence.

NQ Minerals Plc

Consolidated Statement of Total Comprehensive Income

For the period to 30 June 2016

 
                                6 Months                    12 Months 
                                      to       6 Months            to 
                                 30 June             to   31 Dec 2015 
                                    2016   30 June 2015       Audited 
                               Unaudited      Unaudited 
                                GBP'000s       GBP'000s      GBP'000s 
 
Administrative expenses            (176)           (91)         (316) 
Other income                           2              -             6 
ISDX admission costs                   -              -         (207) 
 
Loss before tax                    (174)           (91)         (517) 
 
Income tax charges                     -              -             - 
 
Loss for the period                (174)           (91)         (517) 
 
Other comprehensive income           119              1           (1) 
 
Total comprehensive loss 
 for the period                     (55)           (90)         (518) 
 
 
Attributable to: 
 
- Owners of the parent              (55)           (90)         (518) 
 
 
Loss per share 
 
From continuing operations: 
 
Basic and diluted                (0.12p)        (0.07p)       (0.40p) 
 
 
 
 
 

NQ Minerals Plc

Consolidated Statement of Financial Position as at 30 June 2016

 
                                    As at                        As at 
                                  30 June          As at   31 Dec 2015 
                                     2016   30 June 2015       Audited 
                                Unaudited      Unaudited 
                                 GBP'000s       GBP'000s      GBP'000s 
Assets 
 
Non-current assets 
Deferred exploration 
 and evaluation expenditure           764            162           337 
 
                                      764            162           337 
 
 
Current assets 
Trade and other receivables           305             46           128 
Cash and cash equivalents               8             12           617 
 
                                      313             58           745 
 
 
Total assets                        1,077            220         1,082 
 
 
Equity and liabilities 
 
Capital and reserves 
Issued capital                        144            121           144 
Share premium                       1,308              -         1,308 
Merger relief reserve               7,171          7,171         7,171 
Group reorganisation 
 reserve                          (6,983)        (6,983)       (6,983) 
Currency translation 
 reserve                              125              8             6 
Accumulated deficit                 (827)          (227)         (653) 
 
Total equity                          938             90           993 
 
 
Current liabilities 
Trade and other payables              139            130            89 
 
                                       89            130            89 
 
Total equity and liabilities        1,077            220         1,082 
 
 
 

NQ Minerals Plc

Consolidated Statement of Cash Flows

(MORE TO FOLLOW) Dow Jones Newswires

September 30, 2016 05:36 ET (09:36 GMT)

DJ NQ Minerals PLC Half-year Report -2-

For the period to 30 June 2016

 
                                  6 Months                    12 Months 
                                        to       6 Months            to 
                                   30 June             to   31 Dec 2015 
                                      2016   30 June 2015       Audited 
                                 Unaudited      Unaudited 
                                  GBP'000s       GBP'000s      GBP'000s 
 
Operating activities                 (182)           (82)         (518) 
 
Investing activities 
 
Proceeds from disposal 
 of plant and equipment                  -             16            17 
Payment for exploration 
 expenditure                         (427)           (61)         (248) 
 
Financing activities 
Loans from related parties               -             19             - 
Equity raised by a subsidiary 
 undertaking                             -             85          1331 
 
Net cash in/(out)flow                (609)           (23)           582 
 
Cash and cash equivalents 
 at the beginning 
 of the period                         617             35            35 
 
Bank balances and cash                   8             12           617 
 
 
 

Reconciliation of operating loss to net cash outflow from operating activities.

 
                                  6 Months                    12 Months 
                                        to       6 Months            to 
                                   30 June             to   31 Dec 2015 
                                      2016   30 June 2015       Audited 
                                 Unaudited      Unaudited 
                                  GBP'000s       GBP'000s      GBP'000s 
 
Loss for the period                  (174)           (91)         (517) 
Adjustments for: 
Finance income                           -              -           (6) 
Finance cost                             -              -             6 
 Foreign exchange                        -              1            23 
 Impairment                              -              -             5 
Depreciation and amortisation            -              2             2 
Loss on sale of fixed 
 assets                                  -              8             9 
Non-cash movements in 
 reserves                              119              -           155 
(increase)/decrease in 
 receivables                         (127)             39         (121) 
Increase/(decrease) in 
 payables                                -           (41)          (74) 
 
Net cash outflow from 
 operating activities                (182)           (82)         (518) 
 
 
 

NQ Minerals Plc

Consolidated statement of changes in equity

For period to 30 June 2016

 
                       Share      Share     Merger   Accumulated             Group       Currency      Total 
                     capital    Premium     relief       deficit    reorganisation    translation 
                                           reserve                         reserve        reserve 
                    GBP'000s   GBP'000s   GBP'000s      GBP'000s          GBP'000s       GBP'000s   GBP'000s 
 
 As at 
  1 January 
  2015                   154          -          -         (136)                 -              7         25 
 Loss after 
  tax                      -          -          -          (91)                 -              -       (91) 
 Currency 
  translation 
  reserve                  -          -          -             -                 -              1          1 
 Shares 
  issued                 155          -          -             -                 -              -        155 
 
 Group 
  reorganisation       (188)          -      7,171             -           (6,983)              -          - 
 
 Balance 
  as at 
  30 June 
  2015                   121          -      7,171         (227)           (6,983)              8         90 
 
 Loss after 
  tax                      -          -          -         (426)                 -              -      (426) 
 Currency 
  translation 
  reserve                  -          -          -             -                 -            (2)        (2) 
 Shares 
  issued                  23      2,077          -             -                 -              -      2,100 
 Share 
  issue 
  costs                    -      (769)          -             -                 -              -      (769) 
 
 Balance 
  as at 
  31 Dec 
  2015                   144      1,308      7,171         (653)           (6,983)              6        993 
 
 Loss after 
  tax                      -          -          -         (174)                 -              -      (174) 
 Currency 
  translation 
  reserve                  -          -          -             -                 -            119        119 
 
 Balance 
  as at 
  30 June 
  2016                   144      1,308      7,171         (827)           (6,983)            125        938 
 
 
 

NQ Minerals Plc

Notes to the Interim Financial Information

   1.   General Information 

NQ Minerals Plc ("Company") is a public limited company incorporated in England and Wales with company number

09540926 and quoted on the ISDX Growth Market.

   2.   Basis of Preparation 

This interim report has been prepared using the historical cost convention, on a going concern basis and in accordance with International Financial Reporting Standards ("IFRS") as adopted by the European Union, using accounting policies which are consistent with those set out in the financial statements of NQ Minerals Pty Ltd for the period ended 31 December 2015. This interim financial information for the six months ended 30 June 2016 was approved by the Board on 30 September 2016.

The unaudited interim condensed financial statements for the six months to 30 June 2016 have been prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" and have not been reviewed by the external auditors of the group.

Exchange rates used

The following exchange rates were used in translating the results of NQ Minerals Pty Ltd:

 
 Period             Average Rate GBP   Closing Rate GBP 
                     : AUD              : AUD 
 6 Months to 30 
  June 2016            1 : 1.9547         1 : 1.7991 
 6 Months to 30 
  June 2015            1 : 1.9464         1 : 2.0525 
 12 Months to 31 
  Dec 2015             1 : 2.0306         1 : 2.0344 
 
   3.   Segmental Analysis 

In the opinion of the Directors the group has one class of business, being the exploration for, and development and production of minerals and other related activities.

   4.    Operating loss for the period is stated after charging 
 
                                6 months                    12 Months 
                                      to       6 months            to 
                                 30 June             to   31 Dec 2015 
                                    2016   30 June 2015       Audited 
                               Unaudited      Unaudited 
                                GBP'000s       GBP'000s      GBP'000s 
 
 
 Depreciation                          -              2             2 
 Foreign Exchange                      -              1             - 
 Exploration and evaluation 
  expenditure                          1              -             3 
 Loss on sale of fixed 
  assets                               -              8             9 
 
 
 

NQ Minerals Plc

Notes to the Interim Financial Information

   5.    Loss per share 
 
                                       6 months                    12 Months 
                                             to       6 months            to 
                                        30 June             to   31 Dec 2015 
                                           2016   30 June 2015       Audited 
                                      Unaudited      Unaudited 
                                       GBP'000s       GBP'000s      GBP'000s 
 
Loss per ordinary share 
Basic- pence                            (0.12p)        (0.07p)       (0.40p) 
Diluted - pence                         (0.12p)        (0.07p)       (0.40p) 
 
 
 

The loss per ordinary share is based on the Group's loss for the period of GBP174,000 (30 June 2015 - GBP91,000: 31 December 2015 - GBP517,000) and a basic and diluted weighted average number of shares in issue of 144,386,909 (30 June 2015 - 121,546,000: 31 December 2015 - 130,765,481). The weighted average number of ordinary shares has been restated to reflect the total number of shares arising from the share for share exchange on acquisition and is considered to be in place from the earliest period.

   6.   Ordinary Share Capital 
 
 
 Allotted, called up 
  and fully paid 
 
 

Issued share capital compromises:

 
                                           6 months         6 months        12 Months 
                                              to 30       to 30 June            to 31 
                                               June             2015         December 
                                               2016        Unaudited             2015 
                                          Unaudited                           Audited 
                                           GBP'000s         GBP'000s         GBP'000s 
 
 144,386,909 Ordinary 
  shares of 0.001p each 
  (30 June 2015: 121,546,000, 
  31 December 2015: 144,386,909)                144              122              144 
                                     --------------   --------------   -------------- 
                                                144              122              144 
 
 

On 23 July 2015, 7 August 2015 and 29 December 2015 the company issued and allotted 12,500,000, 9,090,909 and 1,250,000 ordinary shares of GBP0.001 each.

NQ Minerals Plc

Notes to the Interim Financial Information

   7.   Related-party transactions 

Transactions between the Group and its subsidiaries, which are related parties, have been eliminated on

(MORE TO FOLLOW) Dow Jones Newswires

September 30, 2016 05:36 ET (09:36 GMT)

DJ NQ Minerals PLC Half-year Report -3-

consolidation and are not disclosed in this note.

At the period end an amount of GBP195,000 was owed to the Group by W Doyle, a Director of the Company, made up of a balance of GBP48,000 in the Company due to W Doyle and an amount included within debtors of GBP243,000 in NQ Minerals Pty Ltd. These loans are interest-free, unsecured and repayable on demand and has not been offset on consolidation.

At the period end an amount of GBP25,800 was owed by the Group to B Stockbridge, a Director of the Company in respect of an interest-free current account balance which is unsecured and repayable on demand.

At the period end an amount of GBP4,000 was owed by the Group to B Smart, a Director of the Company in respect of an interest-free current account balance which is unsecured and repayable on demand.

   8.   Events subsequent to 30 June 2016 

On 25 August 2016, the Company issued 1,350,000 new shares at a price equivalent to 8.4 pence per share to raise USD $150,000.

9. The unaudited results for 6 months ended 30 June 2016 do not constitute statutory accounts within the meaning of Section 434 of the Companies Act 2006. The comparative figures for the period ended 31 December 2015 are extracted from the audited financial statements of NQ Minerals Pty Ltd which contained an unqualified audit report and did not contain statements under Sections 498 to 502 of the Companies Act 2006.

10. Copies of this announcement will be available for members of the public at the Company's registered office: Finsgate, 5-7 Cranwood Street, London, EC1V 9EE.

This information is provided by RNS

The company news service from the London Stock Exchange

END

IR UROKRNSAKORR

(END) Dow Jones Newswires

September 30, 2016 05:36 ET (09:36 GMT)