DJ Imperial Minerals Plc Half-yearly Report
TIDMIMPP
23 March 2016
Imperial Minerals Plc
("Imperial" or the "Company")
Unaudited interim report for the six months to 31 December 2015
Dear Shareholder,
I am pleased to present the unaudited financial results of Imperial Minerals
Plc for the half-year ended 31 December 2015.
During the period the Company has continued to seek opportunities in the
natural resources sector as part of its stated Investment Policy. Whilst a
number of interesting opportunities were considered, your company continues to
be frustrated by a paucity of risk capital in the resources space - a problem
that has not been helped by negative commentary on the growth prospects of
China and a general fall in commodity prices across the board during the
period.
Consequently, Imperial is considering changing its Investment Policy to better
encompass a broader range of opportunities - by potentially doing this your
Company hopes it can better fulfil its intention of acquiring assets, funding
them with secondary monies and overlaying technical and management expertise to
take them up the value curve. Should the Board decide to change Imperial's
Investment Policy a circular will be sent out to shareholders calling for a
General Meeting and asking them to vote on the matter.
Imperial currently holds 68,972,755 shares in AIM listed North River Resources
Plc ("NRR"). Whilst NRR too has been afflicted by the resource sector's general
malaise, during and subsequent to the period, NRR made substantive steps
towards the re-opening of its brownfield Namib lead-zinc-silver mine in
Namibia. On 01 February 2016, NRR announced it had received from the Namibian
Ministry of Mines and Energy a Notice of Preparedness to grant a mining licence
for the Namib project. Imperial consequently continues to review its investment
in NRR.
On 22 December 2014 Imperial announced that it had entered into an agreement
with Symerton Holdings S.A. ("Symerton") under which it effectively secured an
option to investigate an opportunity to invest in a South American gold
project.
Under this agreement Imperial made a 12% unsecured convertible loan to Symerton
of US$150,000 (the "Loan") and has the option to invest further amounts in
Symerton subject to certain conditions.
To date development work to secure the gold opportunity continues but has made
little material advancement. Imperial has subsequently written down the value
of its investment. Symerton's Loan to Imperial is still outstanding and
Imperial maintains all rights under the agreement.
Immediately subsequent to the period, Imperial announced that it had raised GBP
50,000 before expenses for general working capital through the placing of
10,000,000 new Ordinary Shares of 0.1p each at a price of 0.5p per share. The
Company's enlarged capital is now 28,995,000 shares.
The raising was accompanied with a change of Directors. Mr Frank Moxon tendered
his resignation and Mr James Hamilton was appointed a non-executive Director,
as announced on 7 January 2016.
Financial Review
During the period, the Company only earned revenue in the form of bank interest
and proceeds from the sale of shares. Its cash reserves will be used in the
short term to cover travel costs, salaries, professional consultancy fees,
initial due diligence and other costs incidental to the identification and
development of acquisition opportunities.
During the six month period ended 31 December 2015, the Company made a pre-tax
loss of GBP38,760 (2014: GBP59,147). Cash at bank at the end of December 2015 was GBP
16,994 (30 June 2015: GBP45,837).
Total expenses during the period were GBP44,671 (2014: GBP59,480), which consisted
mainly of salaries & wages of GBP13,607, impairment of loans receivable and loss
on disposal of available for sale investment of GBP17,979, with the balance
comprising corporate and administration expenses.
Financial Position
The Group's Statement of Financial Position as at 31 December 2015 and
comparatives at 31 December 2014 and 30 June 2015 are summarised below:
31 Dec 2015 31 Dec 2014 30 June 2015
GBP GBP GBP
Current assets 23,649 217,822 54,058
Non current assets 41,384 351,917 281,533
Total assets 65,033 569,739 335,591
Current liabilities 6,675 19,736 5,723
Total liabilities 6,675 19,736 5,723
Net assets 58,358 550,003 329,868
On behalf of the Board, I would like to record our thanks to the Company's
advisory committee who have played a key role in sourcing and reviewing
opportunities and to those who have contributed in other ways throughout the
year.
James Hamilton
Chairman
Imperial Minerals Plc
23 March 2016
The Directors of the Company accept responsibility for the content of this
announcement.
For further information please contact:
Imperial Minerals plc
Russell Hardwick
+61 417 714 292
Peterhouse Corporate Finance Limited
Guy Miller and Mark Anwyl
Tel: 020 7220 9796
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the six months ended 31 December 2015
6 months to 6 months to Year ended
31 Dec 2015 31 Dec 2014 30 June 2015
Unaudited Unaudited Audited
Note GBP GBP GBP
Continuing operations
Revenue - - -
Impairment of receivable and loss (17,979) - (101,623)
on disposal of available for sale
investment
Administrative expenses (26,692) (59,480) (113,923)
Loss before taxation (44,671) (59,480) (215,546)
Finance income - interest 5,911 333 6,648
receivable
Income tax 2 - - -
Loss for the year attributable to (38,760) (59,147) (208,898)
the equity shareholders of the
parent
Other comprehensive income
Items that may be subsequently
reclassified to profit or loss
Unrealised changes in value of (232,750) 21,115 (49,269)
available for sale financial
assets
Other comprehensive income for the (232,750) 21,115 (49,269)
year, net of tax
Total comprehensive income for the (271,510) (38,032) (258,167)
period/year attributable to the
equity shareholders of the parent
Loss per share
Basic and diluted loss per share (0.204p) (0.200p) (1.100p)
attributable to the equity 3
shareholders of the parent (pence)
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 31 December 2015
As at As at As at 30 June
31 Dec 2015 31 Dec 2014 2015
Unaudited Unaudited Audited
GBP GBP GBP
ASSETS
Non-current assets
Financial assets - Available for 41,384 351,917 281,533
sale
Total non-current assets 41,384 351,917 281,533
Current assets
Trade and other receivables 6,655 105,206 8,221
Cash and cash equivalents 16,994 112,616 45,837
Total current assets 23,649 217,822 54,058
TOTAL ASSETS 65,033 569,739 335,591
LIABILITIES
Current Liabilities
Trade and other payables 6,675 19,736 5,723
Total current liabilities 6,675 19,736 5,723
TOTAL LIABILITIES 6,675 19,736 5,723
NET ASSETS 58,358 550,003 329,868
EQUITY ATTRIBUTABLE TO OWNERS OF
THE COMPANY
Share capital 189,950 189,950 189,950
Share premium 782,408 753,171 781,171
Other reserve 24,241 53,478 25,478
Available for sale reserve (373,517) (70,383) (140,767)
Retained losses (564,724) (376,213) (525,964)
TOTAL EQUITY 58,358 550,003 329,868
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the six months ended 31 December 2015
Share Share Shares to Retained Available Total
capital premium be issued losses for sale Equity
under reserve
options
GBP GBP GBP GBP GBP GBP
At 1 July 2014 189,950 753,171 53,478 (317,066) (91,498) 588,035
Loss for the - - - (59,147) - (59,147)
period
Other - - - - 21,115 21,115
comprehensive
income for the
period
Total - - - (59,147) 21,115 (38,032)
comprehensive
income for the
period
Balance at 31 Dec 189,950 753,171 53,478 (376,213) (70,383) 550,003
2014
At 1 July 2015 189,950 781,171 25,478 (525,964) (140,767) 329,868
(MORE TO FOLLOW) Dow Jones Newswires
March 23, 2016 11:18 ET (15:18 GMT)
DJ Imperial Minerals Plc Half-yearly Report -2-
Loss for the - - - (38,760) - (38,760)
period
Other - - - - (232,750) (232,750)
comprehensive
income for the
period
Total - - - (38,760) (232,750) (271,510)
comprehensive
income for the
period
Expiry of share - 1,237 (1,237) - - -
options
Balance at 31 Dec 189,950 782,408 24,241 (564,724) (373,517) 58,358
2015
CONSOLIDATED STATEMENT OF CASH FLOWS
For the six months ended 31 December 2015
Note 6 months 6 months Year
to 31 Dec to 31 Dec ended
2015 2014 30 June
Unaudited Unaudited 2015
Audited
GBP GBP GBP
Cash flows from operating 4 (29,933) (52,381) (120,407)
activities
Net cash used in operating (29,933) (52,381) (120,407)
activities
Cash flows from investing
activities
Interest received 26 333 442
Proceeds from disposal of 1,064 - -
available for sale financial
assets
Loans to other entities - (96,555) (95,417)
Cash flows used in investing 1,090 (96,222) (94,975)
activities
Net decrease in cash and cash (28,843) (148,603) (215,382)
equivalents
Cash and cash equivalents at 45,837 261,219 261,219
beginning of the period
Cash and cash equivalents at end 16,994 112,616 45,837
of the period
NOTES TO THE FINANCIAL STATEMENTS
For the six months ended 31 December 2015
NOTE 1: BASIS OF PREPARATION
The condensed consolidated interim financial information of the Group for the
six months ended 31 December 2015 which comprise the Company and its subsidiary
(together referred to as the "Group) were approved by the Board on 23 March
2015. The interim financial information has not been reviewed or audited. The
interim financial information has been prepared in accordance with the
recognition and measurement criteria of International Financial Reporting
Standards (IFRS and IFRIC interpretations) issued by the International
Accounting Standards Board ("IASB") as adopted for use in the EU. The financial
information for the six months to 31 December 2015 does not constitute
statutory accounts of the Group. This financial information has been prepared
in accordance with the accounting policies that are expected to be applied in
the Report and Accounts of Imperial Minerals PLC for the year ending 30 June
2016. The statutory accounts for the year ended 30 June 2015 have been filed
with the Registrar of Companies. The auditor's report on those accounts was
unqualified, did not include any references to any matters to which the
auditors drew attention by way of emphasis and did not contain a statement
under section 498(2)-(3) of the Companies Act 2006.
Imperial Minerals plc, the legal parent, is domiciled and incorporated in the
United Kingdom. The functional currency of Imperial Minerals plc is GBP sterling.
The Financial Statements are presented in sterling (GBP), rounded to the nearest
pound and have been prepared on the going concern basis.
NOTE 2: TAXATION
No taxation has been provided due to losses in the period. No deferred tax
asset has been recognised for past or current losses as the recoverability of
any such assets is not probable in the foreseeable future.
NOTE 3: LOSS PER SHARE
The calculation of the basic loss per share of 0.204 pence is based on the loss
attributable to ordinary shareholders of GBP38,760 and on the weighted average
number of ordinary shares of 18,995,000 in issue during the period.
In accordance with IAS 33, no diluted earnings per share is presented as the
effect on the exercise of share options or warrants would be to decrease the
loss per share.
NOTE 4: NOTES TO THE CASH FLOW STATEMENT
6 months to 6 months to Year ended
31 Dec 2015 31 Dec 2014 30 June
Unaudited Unaudited 2015
Audited
GBP GBP GBP
Reconciliation of loss from operations to
cash flows from operating activities
Loss from operations (38,760) (59,147) (208,898)
Interest receivable (5,911) (333) (6,648)
Impairment of loan receivable 5,885 - 101,623
Net loss from disposal of available for 6,335 - -
sale financial assets
Decrease / (Increase) in trade and other 1,567 (6,547) (6,117)
receivables
Increase / (Decrease) in trade and other 951 13,646 (367)
payables
Cash flow from operating activities (29,933) (52,381) (120,407)
NOTE 5:POST BALANCE SHEET EVENTS
On the 7 January 2016 the Company announced that it raised GBP50,000 through a
placing of 10,000,000 new ordinary shares of 0.1p each at a price of 0.5p per
share. On this date the Company also announced the appointment of James
Hamilton as a non-executive Director of the Company.
Other than the above, there has not been any matter or circumstance occurring
subsequent to the end of the half year, that has significantly affected or may
significantly affect the operations of the Group, the results of those
operations or the state of affairs of the Group in future financial years.
NOTE 6: FORWARD LOOKING STATEMENTS
This report contains certain forward looking statements, which include
assumptions with respect to future plans, results and expenditures. The reader
is cautioned that assumptions used in the preparation of such information may
prove to be incorrect. All such forward looking statements involve substantial
known and unknown risks and uncertainties, certain of which are beyond the
Company's control. Please refer to the Company's Annual Report available from
the Company's web site for a list of risk factors. The Company's actual results
could differ materially from those expressed in, or implied by, these
forward-looking statements and, accordingly, no assurances can be given that
any of the events anticipated by the forward-looking statements will transpire
or occur, or if any of them do so, what benefits the Company will derive
therefrom. All subsequent forward-looking statements, whether written or oral,
attributable to the Company or persons acting on its behalf are expressly
qualified in their entirety by these cautionary statements. Furthermore, the
forward-looking statements contained in this report are made as at the date of
this report
NOTE 7: INTERIM REPORT
Copies of this interim report for the six months ended 31 December 2015 will be
available from the offices of Imperial Minerals Plc, 2 Stone Buildings Lincolns
Inn London WC2A 3TH, and on the company's website www.imperialminerals.com
END
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