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DJ NQ Minerals PLC Final Results


RNS Number : 6983G

NQ Minerals PLC

31 May 2017

31 May 2017

NQ Minerals plc

(The "Company" or "NQ Minerals")

Final results for the period ended 31 December 2016

NQ Minerals (NEX:NQMI), an Australia-based exploration and mining company, today announces its final results for the period ended 31 December 2016.

Chairman's statement

2016 welcomed a reversal of the negative sentiment which has dogged the minerals exploration sector for a number of years. Our investment in our exploration assets, our efforts to add value to our existing projects and search for value adding projects, along with improved market sentiment, provides us with great confidence in our progress and the direction upon which our Group is embarking. During 2016 we agreed to acquire Keen Pacific Limited. The acquisition completed on 18 May 2017 and will see NQ Minerals wholly own the prospective Hellyer Gold Mine in Tasmania, Australia ("Hellyer"). This is in line with the Company's strategy of becoming a near-term revenue generating gold and base metal production company.


NQ is focused on three main projects being Hellyer in Tasmania which offers the prospects of significant short term cash flow, and it's two exploration projects, Ukalunda and Square Post, in North Queensland, Australia. These two exploration 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.


The Board and management of NQ Minerals consider that the Hellyer Gold Mine in Tasmania represents a significant permitted project for the Company with life of mine revenues exceeding AUD$1.3 bn (US$1.033bn) and a post-tax NPV estimated by management of AUD$276 m (US$210m). The capital expenditure to start the project is low at only AUD$20m and the project is expected to have a 10 year mine life. The necessary plant and equipment exists on site including a large pre-existing mill facility and full supporting infrastructure, including a direct rail line to port with port concentrate housing, handling and loading facilities.

NQ Minerals' acquisition of Hellyer allows the opportunity to fully process and bring the tailings to account. Held within four separate areas, the tailings total 11.24 mt, and comprise a JORC compliant resource estimated at 9.5 mt which is host to Gold at 2.61 g/t Au for 796,000 oz Au, Silver at 104 g/t Ag for 32 m oz Ag, Lead at 3.03% Pb for 287,800 tonnes and Zinc at 2.5% Zn for 237,900 tonnes.


The Group continues to invest in the Ukalunda. The tenement, which lies midway between the Lake Dalrymple/Burdekin Dam and the historic Wirralie gold mine, which previously produced 1.1 million ounces of gold. The Ukalunda project area contains multiple shows of mineralisation that are the same as other mineralisation shows discovered in mining districts around the world that host major ore bodies. This suggests that a major ore body may be present in this district. Historic, wide-ranging exploration has been carried out at the Ukalunda permit area, which had discovered some areas of rich mineralisation of gold, silver and a number of associated base metals.

Square Post

Investment continues in the Square Post tenement lies close to the Flinders Highway, 10 kilometres north east of Mingela and 50 kilometres south of Townsville. The area is considered to be underexplored, principally due to its rugged terrain. The permit consists of 47 sub-blocks covering an area of around 168km2. Map to Mine has reported that the Square Post tenement is in good standing.


The Hellyer Gold Mine will be a flagship project for NQ Minerals and is expected to see us transform into a near-term producer within a 12 month time-frame. First work will involve the refurbishment of the existing operating facilities in order to extract and treat the large high-grade tailings deposit on site and produce three marketable concentrates (lead, zinc, gold/silver/pyrite). The project is expected to be producing within a short time period and offers the potential for attractive returns with a quick payback of capital. The Board believes Hellyer is a world-class project that blends in well with our North Queensland assets and our long-term goal to become a significant gold and base metal producer in Australia. I am optimistic about the Group's growth potential and we look to the future with significant confidence.

Brian Stockbridge


31 May 2017

 NQ Minerals plc 
 Brian Stockbridge 
 Tel: + 44 (0) 7876 888 011 
 Daniel Stewart & Company plc 
 Richard Potts 
 Tel: +44 (0) 207 776 6550 
 Yellow Jersey PR Limited 
 Felicity Winkles / Alistair de Kare-Silver 
 Tel: +44 (0) 7825 916 715 
                                                              Year ended    Period ended 
                                                              31 December    31 December 
                                                                 2016           2015 
                                                               GBP'000s       GBP'000s 
 Continuing operations 
 Revenue                                                                -              - 
 Gross Profit                                                           -              - 
 Administrative expenses                                          (2,394)          (316) 
 NEX admission costs                                                    -          (207) 
 Operating loss                                                   (2,394)          (523) 
 Finance income                                                         3              6 
 Loss on ordinary activities before 
  taxation                                                        (2,394)          (517) 
 Taxation                                                               -              - 
 Loss for the period                                              (2,394)          (517) 
 Foreign exchange gains / 
  (losses)                                                              4            (1) 
 Total comprehensive loss for the period attributable 
  to the owners of the Parent                                      (2387)          (518) 
                                                            =============  ============= 
 Loss per share (pence)                                              1.62           0.40 
 AS AT 31 DECEMBER 2016 
                                                        As at 31 December   As at 31 December 
                                                               2016                2015 
                                                            GBP'000s            GBP'000s 
 Non-current assets 
 Deferred exploration and evaluation expenditure                      899                 337 
 Property, plant and equipment                                          -                   - 
 Deposits                                                             239                   - 
                                                                    1,138                 337 
 Current assets 
 Trade and other receivables                                          373                 128 
 Cash and cash equivalents                                          2,084                 617 
                                                                    2,457                 745 
 Total assets                                                       3,595               1,082 
                                                       ------------------  ------------------ 
 Equity and liabilities 
 Equity attributable to owners of 
  the Parent 
 Ordinary shares                                                      159                 144 
 Share premium                                                      2,382               1,308 
 Share option reserve                                                 231                   - 
 Group reorganisation reserve                                     (6,983)             (6,983) 
 Translation reserve                                                   91                   6 
 Merger relief reserve                                              7,171               7,171 
 Accumulated losses                                               (3,040)               (653) 
 Total equity                                                          11                 993 
                                                       ------------------  ------------------ 
 Current liabilities 
 Trade and other payables                                             558                  89 
 Financial liabilities                                               1926                   0 
 Convertible notes                                                   1100                   0 
 Total liabilities                                                  3,584                  89 
                                                       ------------------  ------------------ 
 Total equity and liabilities                                       3,595               1,082 
                                                       ==================  ================== 
                                                           Year ended    Period ended 
                                                           31 December    31 December 
                                                              2016           2015 
                                                            GBP'000s       GBP'000s 
 Cash flows from operating activities                          (1,185)          (518) 
 Cash flows from investing activities 

(MORE TO FOLLOW) Dow Jones Newswires

May 31, 2017 06:22 ET (10:22 GMT)

DJ NQ Minerals PLC Final Results -2-

 Payment for exploration expenditure                             (562)          (248) 
 Proceeds from disposal of tangible 
  assets                                                             -             17 
 Payment for share purchase acquisition (deposits)               (239)              - 
 Net cash flows from investing activities                        (801)          (231) 
 Cash flows from financing activities 
 Increase / (decrease) in 
  borrowings                                                     2,364              - 
 Proceeds on issue of shares                                     1,089          1,331 
 Net cash flows from financing activities                        3,453          1,331 
 Net increase in cash and cash equivalents                       1,467            582 
 Cash and cash equivalents at the brought 
  forward                                                          617             35 
                                                         -------------  ------------- 
 Cash and cash equivalents carried forward                       2,084            617 
                                                         =============  ============= 
 1. The financial information set out above does not constitute statutory 
  accounts for the purpose of Section 434 of the Companies Act 2006. 
  The financial information has been extracted from the statutory accounts 
  of NQ Minerals Plc and is presented using the same accounting policies, 
  which have not yet been filed with the Registrar of companies, but 
  on which the auditors gave an unqualified report on 31 May 2017. 
            The preliminary announcement of the results for the period ended 31 
             December 2016 was approved by the board of directors on 31 May 2017. 
  2. Earnings per share 
                                                                   2016               2015 
  Basic loss per share is calculated by 
   dividing the loss attributable to equity 
   shareholders by the weighted average 
   number of ordinary shares in issue during 
   the period: 
  Loss after tax attributable to equity 
   holders of the Group                                         GBP2,391,000          GBP517,000 
  Weighted average number of ordinary shares                     147,576,361         130,765,481 
  Basic and diluted loss 
   per share                                                           1.62p               0.40p 
                                                             ---------------   ----------------- 
  Diluted loss per 
  Diluted earnings per share is calculated by adjusting the weighted 
   average number of ordinary shares outstanding to assume conversion 
   of all dilutive potential ordinary shares. Since the Group does not 
   have any dilutive potential ordinary shares the diluted loss per 
   share is the same as the basic loss per share. 
  Potentially convertible 
  The Group has convertible ordinary shares on issue as at 31 December 
   2016 as follows: 
   - 20,508,728 convertible ordinary shares in connection 
    with the convertible notes on issue at year end. These 
    convertible notes have a maturity date within the next 
    12 months; and 
   - 8,000,000 options on issue to two directors. These are 
    options expire in the 2021 financial year. 
  The above have not been factored into the loss per share calculation 
   as they do not dilute current earnings per share. 

This information is provided by RNS

The company news service from the London Stock Exchange



(END) Dow Jones Newswires

May 31, 2017 06:22 ET (10:22 GMT)