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DJ Block Commodities Ltd: Interim Results for the 6 months to 31 December 2019

 
 Block Commodities Ltd (BLCC) 
Block Commodities Ltd: Interim Results for the 6 months to 31 December 2019 
 
01-Apr-2020 / 07:00 GMT/BST 
Dissemination of a Regulatory Announcement, transmitted by EQS Group. 
The issuer is solely responsible for the content of this announcement. 
 
      Block Commodities Limited / Epic: BLCC / Sector: Mining 
 
      Block Commodities Limited ('Block Commodities' or 'the Company') 
 
      Interim Results for the 6 months to 31 December 2019 
 
            Chairman's Statement 
 
      I am pleased to present the interim report for the six months ended 31 
 December 2019. As announced on 27 March 2019, the Company is looking to for 
    opportunities to enter the Medicinal Cannabis Market. Investment in this 
sector was formally approved by shareholders at a General Meeting held on 27 
            December 2019. 
 
         Our Farmer 3.0 program will continue with a potential pilot to grow 
      medicinal grade cannabis with a farmers' cooperative in Zambia. We are 
  currently awaiting the licence to be issued. Block Commodities will be the 
  exclusive of- taker and this opportunity offers the Company assured access 
         to quality product without the need for significant upfront capital 
            expenditure. 
 
  Our option to acquire Greenbelt Company Limited was extended on 30 January 
 2020. Further progress remains on hold pending legislation in Sierra Leone. 
 
        Ian Tordoff was appointed CEO on 21 November 2019 after joining as a 
      consultant earlier in the year. Ian has brought together an impressive 
       Scientific Advisory Team who will be helping the Company to introduce 
            downstream cannabis-based nutraceuticals and wellness products. 
 
    The exploration licence for the Company's original potash project at Lac 
 Dinga in the Republic of Congo was renewed, for a further two years in July 
2019. Unfortunately, our farm-in partner, African Agronomix Limited, was not 
      able to commence its exploratory drilling in the remaining part of the 
   regional dry season. Planning for the next drilling campaign is underway, 
     however COVID-19 restrictions, both in the country and the wider region 
          could adversely impact the ability to mobilise activity as planned 
 
            Results 
 
    The results for the period showed an operating loss of $0.4m (HY19: loss 
    $0.6m). Finance charges were lower at $0.1m (HY98: $0.2m) resulting in a 
   loss before tax of $0.4m (HY18: $0.6m). Cash balances at 31 December 2019 
            were $45,000, (201 8: $1,000). 
 
At 31 December 2019, the Group is reporting Net Liabilities of $559,000. The 
Company is currently in negotiations with the lender of the loan note with a 
 view to the conversion of the loan note into equity. This would both return 
      the Group balance sheet to a net asset position, as well as reduce the 
            accruing finance costs going forward. 
 
            Board changes 
 
 I would like to welcome Ian Tordoff to the board as CEO to lead the Company 
in its new phase of development. I have stepped back from my executive role. 
  Subsequent to the period end, Neil Clayton was appointed Finance director. 
 
            Outlook 
 
The Company is looking to work with its Scientific Advisory Team to identify 
      suitable products and opportunities in the nutraceuticals and wellness 
     sectors. These initiatives will require the Company to raise additional 
            capital. 
 
 COVID-19 has had a significant impact already in the capital markets and in 
  order to ensure any funds raised are deployed to maximum effect, the board 
  intends to limit expenditure to essential corporate costs whilst keeping a 
    close watch on opportunities for the business that offer investor value. 
 
            Chris Cleverly 
 
            Chairman 
 
            31 March 2020 
 
            UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS 
 
            FOR THE SIX MONTHS ENDED 31 DECEMBER 2019 
 
            Unaudited Consolidated Income Statement 
 
            For the half year to 31 December 2019 
 
                             Unaudited    Unaudited      Audited 
 
                           6 months to  6 months to   Year ended 
 
                           31 December  31 December      30 June 
 
                                  2019         2018         2019 
                  Note           $'000        $'000        $'000 
 
      Operating                  (248)        (453)        (778) 
       expenses 
 Impairment of: 
 
      - loan to                      -          (50         (50) 
       unquoted 
        company 
 
    Other gains                   (42)           97          119 
      /(losses) 
 Operating loss                  (290)        (406)        (709) 
    Net finance                   (99)        (158)        (364) 
        expense 
    Loss before                  (389)        (564)      (1,073) 
       taxation 
     Income tax                      -            -            - 
        expense 
   Loss for the                  (389)        (564)      (1,073) 
         period 
attributable to 
  owners of the 
 parent company 
 
Loss per share:    5     (0.007 cents) (0.01 cents) 
basic and 
diluted 
 
                                                    (0.02 cents) 
 
All results relate to continuing activities 
 
            Unaudited Consolidated Comprehensive Income Statement 
 
            For the half year to 31 December 2019 
 
                                Unaudited   Unaudited    Audited 
 
                              6 months to 6 months to Year ended 
 
                              31 December 31 December    30 June 
 
                                     2019        2018       2019 
                                    $'000       $'000      $'000 
        Loss for the period         (389)       (564)    (1,073) 
 Other comprehensive income 
       Exchange translation             -        (12)          1 
     differences on foreign 
                 operations 
 Total comprehensive income         (389)       (576)    (1,072) 
for the period attributable 
    to owners of the parent 
                    company 
 
Unaudited Consolidated Statement of Financial Position 
 
As at 31 December 2019 
 
                                    Unaudited Unaudited  Audited 
 
                                           31        31  30 June 
                                     December  December 
 
                                                            2019 
                                         2019      2018 
                        Note            $'000     $'000    $'000 
 
      Non-current 
           assets 
Intangible assets: exploration          3,000     3,000    3,000 
activities 6 
Property plant and equipment                -         3        - 
Total non-current                       3,000     3,003    3,000 
           assets 
 
   Current assets 
  Trade and other                          37         1       25 
      receivables 
    Cash and cash                          45         1       80 
      equivalents 
    Total current                          82         2      105 
           assets 
 
     Total assets                       3,082     3,005    3,105 
 
          Current 
      liabilities 
  Trade and other                     (1,582)   (1,797)  (2,076) 
         payables 
        Loan note         7           (2,059)   (1,635)  (1,951) 
              Net                       (559)     (427)    (922) 
(liabilities)/ass 
              ets 
 
           Equity 
   Issued capital         8            19,907    19,345   19,341 
      Share based                       3,036     2,882    2,850 
  payment reserve 
Foreign exchange translation            (572)     (586)    (572) 
reserve 
Retained earnings                    (22,930)  (22,068) (22,541) 
Total equity                            (559)     (427)    (922) 
attributable to 
equity holders 
 
            Unaudited Consolidated Statement of Cash Flows 
 
For the half year to 31 December   Unaudited  Unaudited  Audited 
2018 
 
                                    6 months   6 months     year 
                                          to         to    ended 
 
                                          31         31  30 June 
                                    December   December 
 
                                                            2019 
                                        2019       2018 
Operating                              $'000      $'000    $'000 
activities 
Loss before tax                        (389)      (564)  (1,073) 
Adjustments for: 
Impairment of loan to unquoted             -         50       50 
company 
Depreciation                               -          3        6 
Movements in exchange                     45      (106)    (109) 
Net interest                              99        158      364 
expense 
Operating cash flow before             (245)      (460)    (702) 
movements in working capital 
Working capital adjustments: 
- Decrease / (increase) in                 -         10       10 
inventory 
- Decrease / (increase) in                 -         26       27 
receivables 
- Increase / (decrease) in               123        226      298 
payables 
Cash used in                           (122)      (198)    (427) 
operations 
Net interest paid                          -          -        - 
Net cash outflow from operating        (122)      (198)    (427) 
activities 
 
Investing 
activities 
Loan to unquoted company                   -       (50)     (50) 
Net cash flow from investing               -       (50)     (50) 
activities 
 
Financing activities 
Issue of shares                           87         96       96 
Issue of convertible loan note                               308 
Net cash flow from financing              87         96      404 
activities 
Net decrease in cash and cash           (35)      (152)     (73) 
equivalents 
Cash and cash equivalents at              80        153      153 
start of the period 

(MORE TO FOLLOW) Dow Jones Newswires

April 01, 2020 02:00 ET (06:00 GMT)

DJ Block Commodities Ltd: Interim Results for the 6 -2-

Effect of foreign exchange rates           -          -        - 
Cash and cash equivalents at end          45          1       80 
of the period 
 
            Notes to the Unaudited Interim Financial Statements 
 
1. General information 
 
 Block Commodities is a public limited company incorporated and domiciled in 
    the Guernsey. The address of its registered office is Richmond House, St 
            Julian's Avenue, St Peter Port, Guernsey GY1 1GZ. 
 
       The Company is admitted to trading on the Aquis Stock Exchange Growth 
            market. 
 
        The unaudited interim financial statements for the 6 months ended 31 
        December 2019 were approved for issue by the board on 31 March 2020. 
 
The interim financial statements for the 6 months ended 31 December 2019 and 
the 6 months ended 31 December 2018 are unaudited and do not constitute full 
       accounts. The comparative figures for the year ended 30 June 2019 are 
   extracts from the annual report and do not constitute statutory accounts. 
 
 The unaudited interim financial statements have been prepared in US Dollars 
    as this is the currency of the primary economic environment in which the 
            Group operates. 
 
2. Basis of preparation 
 
    The condensed consolidated financial statements of the Group for the six 
        months ended 31 December 2019, which are unaudited and have not been 
reviewed by the Company's auditor, have been prepared in accordance with the 
     International Financial Reporting Standards ('IFRS'), as adopted by the 
 European Union, accounting policies adopted by the Group and set out in the 
            annual report for the year ended 30 June 2019 (available at 
 www.blockcommodities.com [1]). The Group does not anticipate any additional 
  significant change in these accounting policies for the year ended 30 June 
   2020. References to 'IFRS' hereafter should be construed as references to 
            IFRSs as adopted by the EU. 
 
   While the financial figures included in this report have been computed in 
   accordance with IFRSs applicable to interim periods, this report does not 
 contain sufficient information to constitute an interim financial report as 
            that term is defined in IFRSs. 
 
 The financial information contained in this report also does not constitute 
     statutory accounts under the Companies (Guernsey) Law 2008, as amended. 
 
3. Significant accounting policies 
 
            Basis of accounting 
 
        The unaudited interim financial statements have been prepared on the 
     historical cost basis except for financial instruments measured at fair 
  value. The principal accounting policies adopted are consistent with those 
            of the financial statements for the year ended 30 June 2019. 
 
4. Earnings per share 
 
     The calculation of basic and diluted earnings per share is based on the 
            following data: 
 
                                   Unaudited Unaudited Unaudited 
 
                                    6 months  6 months      year 
                                          to        to     ended 
 
                                          31        31   30 June 
                                    December  December 
 
                                                            2019 
                                        2019      2018 
                                       $'000     $'000     $'000 
Loss for the purpose of basic 
loss per share 
 
                                       (564)     (564)   (1,073) 
 Number of shares 
Weighted average number of         5,413,743 4,826,314 4,831,793 
ordinary shares for the purposes        ,462      ,237      ,287 
of calculating basic and diluted 
loss per share 
 
Basic and diluted loss per share     (0.01c)  (0.01c))   (0.02c) 
(cents) 
 
-attributable to equity holders 
 
5. Intangible assets     Unaudited   Unaudited  Unaudited 
 
                       6 months to 6 months to year ended 
 
                       31 December 31 December    30 June 
 
                              2019        2018       2019 
                             $'000       $'000      $'000 
                             3,000       3,000      3,000 
 
Evaluation and exploration costs are capitalised in accordance with IFRS6 
 
    The asset comprises the Lac Dinga exploration licence in the Republic of 
  Congo held by La Societé des Potasses et des Mines SA ("SPM") in which the 
  Group has a 70% interest. The second term of the licence was renewed for a 
            further 2 years in July 2019. 
 
    In order to develop the asset and issue a maiden resource statement, the 
       Group announced on 19 July 2017 that it has entered an agreement with 
  African Agronomix Limited ("AAX"), whereby AAX has the right to acquire up 
 to 100% of the Company's interest in Lac Dinga project structured over four 
   distinct phases. The agreement was effective 17 October 2017. AAX delayed 
   commencement of the next phase of exploration work pending receipt of the 
   license renewal and were not able to mobilise in the remaining dry season 
            this period. Planning for the next phase continues. 
 
6. Loan Note 
 
                                         $'000 
             At 1 July 2018              1,423 
Unpaid interest capitalised                306 
   Exchange rate adjustment               (94) 
        At 31 December 2018              1,635 
   Exchange rate adjustment                (8) 
            At 30 June 2019              1,627 
Unpaid interest capitalised                350 
   Exchange rate adjustment                 81 
        At 31 December 2019              2,059 
 
 On 1 September 2017, the Company, with agreement of the lender, renewed the 
term of the loan for a further 2 years. The loan is repayable on the earlier 
            of: 
 
· 1 September 2019; 
 
· completion by the Company of equity financing which (in aggregate) 
raises more than GBP2.0m; and 
 
· completion of any non-trade finance debt financing. 
 
  In addition, the lender has the right at any time to convert any amount of 
  the loan outstanding at a conversion price of 0.02p per ordinary share or, 
if lower, at a price per share at which shares are issued for cash following 
            the renewal of the loan. 
 
The Company has not met its obligations and accordingly a provision has been 
         made for the full amount of interest and arrangement fees under the 
            agreement through to 31 August 2019. 
 
  The amount of unpaid interest and fees capitalised at 1 September 2019 was 
 $350,000. The Company is in negotiations with the lender to restructure the 
   loan and to convert a proportion, to be agreed, into equity. This will be 
            sufficient to eliminate the net liabilities. 
 
8. Share 
Capital 
                                Ordinary shares of no par value 
                                    Allotted and fully paid 
                                          Number           $'000 
 
At 1 July 2018                     4,730,363,150          19,314 
Issue of shares                      107,000,000             641 
          At 31 December 2018      4,837,363,150          19,345 
      Cost of issue of shares                  -               4 
               At 1 July 2019      4,837,363,150          19,341 
Issue of shares                    2,525,094,700             566 
 At 31 December                    7,362,457,850          19,907 
           2019 
 
    On 19 November 2019, convertible loan notes with a principal of $324,000 
   were converted into 1,275,980,000 new ordinary shares at a price of 0.02p 
            per share. 
 
  On 19 November 2019, creditors for fees and expenses amounting to $151,000 
 were settled by the allotment of 584,114,700 new ordinary shares at a price 
            of 0.02p per share. 
 
  On 19 November 2019, a further 665,000,000 new ordinary shares were issued 
            for cash at 0.02p per share. 
 
            For more information, visit: http://www.blockcommodities.com [2] 
 
The Directors of the Company accept responsibility for the content of this 
announcement. 
 
For further information, please contact: 
 
             Block Commodities Limited 
                        Chris Cleverly info@blockcommodities.com 
                           Ian Tordoff 
 
        Aquis Stock Exchange Corporate 
                              Adviser: 
    Alexander David Securities Limited 
       David Scott - Corporate Finance      +44 (0) 20 7448 9820 
    James Dewhurst - Corporate Broking      +44 (0) 20 7448 9820 
 
ISIN:          GG00B4QYTJ50 
Category Code: IR 
TIDM:          BLCC 
LEI Code:      2138001KNTXRAZTFKU51 
Sequence No.:  55821 
EQS News ID:   1012267 
 
End of Announcement EQS News Service 
 
 
1: https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=5fd957859089143ab1da9a8d39238f92&application_id=1012267&site_id=vwd&application_name=news 
2: https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=9bde756e7c0d782c1283fab3c60743c6&application_id=1012267&site_id=vwd&application_name=news 
 

(END) Dow Jones Newswires

April 01, 2020 02:00 ET (06:00 GMT)