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DJ Equatorial Mining & Exploration PLC Half-year Report

TIDMEM.P

RNS Number : 6273D

Equatorial Mining & Exploration PLC

10 October 2018

EQUATORIAL MINING AND EXPLORATION PLC

("EME" OR THE "COMPANY")

CHAIRMAN'S STATEMENT

Interim Results for the six months ended 30th June 2018

I have pleasure in attaching the Interim Results which have been announced and posted concurrently with the delayed Audited Annual Accounts for the year ended 31(st) December 2017. The Chairman's statement in the Annual accounts relates to this six month period and I set out a copy of that statement below:

I am pleased to announce our results to the end of 2017, notice of Annual General Meeting and also announced separately today, our interim figures to the end of June 2018. These accounts consolidate our Nigerian company, EME Mine Nigeria Limited into the Group accounts on this occasion and more details are given below.

The accounts display a continuing loss as we invest in operations and I am obliged to draw your attention to the report of the Independent Auditor set out at the end of this announcement, which expresses the opinion that material uncertainty exists about our going-concern status.

During the year ended December 2017, the company had committed to trial mining at its recently acquired open cast mine in Kogi State, called the St Leonard Mine, Imane. We had engaged the services of a local contract mining company which ended in disappointment as a result of operational mistakes. The mistakes were born from inexperience and I wish to emphasise an important point; Nigeria's natural resources sector (other than oil and gas) is in its infancy and thus a challenging place in which to operate as the in-country experience and expertise is all but non-existent in the field of coal excavation.

In 2018 we determined that we had to find outside support to take build on the foundations which we had laid.

In June we were delighted to make contact with Mr Welcome Sandawana of ARQ Minerals Pty Limited ("ARQ") a South African coal mining company. As announced on 17(th) July, the Board believes that the investment made from ARQ has added value to the Company mining prospects.

Following their good performance and in return for agreeing to take over the complete project, including bringing manpower and funding from South Africa, we handed control of EMEMine Nigeria Ltd to ARQ and accelerated their share earn-in so that they now have a controlling interest of 51%. Accordingly, EMEMine Nigeria has become an investment interest of ours and will not be consolidated into future Group accounts.

This was an extraordinary change in circumstances for the Group and with Mr Sandawana on the ground at the St Leonard mine using locally sourced plant and machinery, excavation advanced at speed despite the torrential rain fall. It has been said that August and September formed the wettest Nigerian monsoon season for ten years. I wish to thank Welcome for his endurance and a determination to deliver on his promises to the Group and its members.

We took the decision to commit to a period of coal heaping before advertising our product for sale and as at the date of this announcement I am delighted to report that customers' coal lorries are arriving.

The sale proceeds from the coal will be re-invested into productivity and after this and the payment of royalties to the project introducer, licence owner and Imane tribal community, will return to both ARQ and Equatorial Mining and Exploration Plc as fees and dividends, yet to be determined.

Assuming that sales are maintained, in the new year we and our shareholders, including ARQ, will start to examine business plans of those companies requiring investment, potentially as part of an acquisition by us. This has been our strategy from the very beginning.

10 October 2018

Enquiries:

 
 Equatorial Mining & Exploration 
  Plc:                                nelson@nexfin.org.uk 
  Nicholas Nelson, Executive 
  Chairman 
 ISDX Adviser and Broker 
  Alexander David Securities 
  James Dewhurst                      +44 (0) 207 448 9820 
                                   ----------------------- 
 

The Directors take responsibility for this announcement.

EQUATORIAL MINING AND EXPLORATION PLC

UNAUDITED INCOME STATEMENT FOR THE SIX MONTHS ENDED 30 JUNE 2018

 
                                            6 Months           6 Months            Year to 
                                                  to                 to        31 December 
                                             30 June            30 June               2017 
                                                2018               2017 
                                             GBP'000            GBP'000            GBP'000 
 
 
 Sales                                             -                  -                  1 
 Cost of sales                                     -                  -                (1) 
                                    ----------------   ----------------   ---------------- 
 Gross profit                                      -                  -                  - 
 
 Administrative expenses                       (151)              (110)              (271) 
 
 Provision against loan advanced 
  to related party                                 -                (7)               (36) 
 
 Share-based compensation                          -                  -                  - 
 
 Project Originations costs                     (11)                  -               (14) 
                                    ----------------   ----------------   ---------------- 
 Profit/(loss) from operations                 (162)              (117)              (321) 
 
 Investment income (expense)                       -                  -               (27) 
                                    ----------------   ----------------   ---------------- 
 Profit/(loss) before taxation                 (162)              (117)              (294) 
 
 Taxation                                          -                  -                  - 
                                    ----------------   ----------------   ---------------- 
 Profit/(loss) from continuing 
  operations                                   (162)              (117)              (294) 
 
 
 Earnings/(loss) per share (note 
  3) 
 
 Basic and diluted (pence)                   (0.002)            (0.002)            (0.005) 
 
                                                                      - 
 

EQUATORIAL MINING AND EXPLORATION PLC

UNAUDITED STATEMENT OF COMPREHENSIVE INCOME FOR THE PERIOD ENDED

30 JUNE 2018

 
                                 6 Months   6 Months        Year to 
                                       to         to    31 December 
                                  30 June    30 June           2017 
                                     2018       2017 
                                  GBP'000    GBP'000        GBP'000 
 
 Profit/(loss) for the period       (162)      (117)          (294) 
 
 
 
 Total comprehensive income         (162)      (117)          (294) 
 
 

EQUATORIAL MINING AND EXPLORATION PLC

UNAUDITED STATEMENT OF CHANGES FOR THE SIX MONTHS ENDED

30 JUNE 2018

 
                                                                         Share-based      Investments 
                            Share            Share         Retained     compensation           in own 
                          capital          premium         earnings          reserve           shares            Total 
                          GBP'000          GBP'000          GBP'000          GBP'000          GBP'000          GBP'000 
 
 Balance as at 
  1 January 2018              693            1,536          (4,092)            1,349            (133)            (647) 
 
 Total 
  recognised 
  income and 
  expense 
  for the period                -                -            (162)                -                -            (162) 
 Issue of new 
  shares                       69                -                -                -                -               69 
 
                   --------------   --------------   --------------   --------------   --------------   -------------- 
 Balance at 30 
  June 2018                   762            1,536          (4,254)            1,349            (133)            (740) 
 
 
 Balance as at 
  1 January 2017              592            1,528          (3,798)            1,313            (133)            (498) 
 
 Total 
  recognised 
  income and 
  expense 
  for the period                -                -            (117)                -                -            (117) 
 
 Issue of new 
  shares                       14                -                -                -                -               14 
                   --------------   --------------   --------------   --------------   --------------   -------------- 
 Balance at 30 
  June 2017                   606            1,528          (3,915)            1,313            (133)            (601) 
 
 
 
 

EQUATORIAL MINING AND EXPLORATION PLC

UNAUDITED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2018

 
                                                As at              As at              As at 
                                              30 June            30 June        31 December 
                                                 2018               2017               2017 
                                              GBP'000            GBP'000            GBP'000 
 Assets 
 Non-current assets 
 Goodwill                                           2                  2                  2 
                                     ----------------   ----------------   ---------------- 
 
 Current assets 
 
 Trade and other receivables                        9                  8                  6 
 Cash and cash equivalents                         53                  5                 16 
                                     ----------------   ----------------   ---------------- 

(MORE TO FOLLOW) Dow Jones Newswires

October 10, 2018 08:38 ET (12:38 GMT)

DJ Equatorial Mining & Exploration PLC Half-year -2-

                                                   62                 13                 22 
                                     ----------------   ----------------   ---------------- 
 Total assets                                      64                 15                 24 
 
 Equity and liabilities 
 
 Share capital                                    762                601                693 
 Investment in own shares                       (133)              (133)              (133) 
 Share premium account                          1,536              1,528              1,536 
 Share-based compensation reserve               1,349              1,313              1,349 
 Retained earnings                            (4,254)            (3,915)            (4,092) 
                                     ----------------   ----------------   ---------------- 
 Total equity                                   (740)              (601)              (647) 
 
 Current liabilities 
 Trade and other payables                         764                572                671 
 
 Long term liabilities 
 Convertible loan                                  40                 44                  - 
 
                                     ----------------   ----------------   ---------------- 
 Total equity and liabilities                      64                 15                 24 
 
 
 

EQUATORIAL MINING AND EXPLORATION PLC

UNAUDITED STATEMENT OF CASH FLOWS FOR SIX MONTHS ENDED

30 JUNE 2018

 
                                                  6 Months           6 Months            Year to 
                                                        to                 to        31 December 
                                                   30 June            30 June               2017 
                                                      2018               2017 
                                                   GBP'000            GBP'000            GBP'000 
 
 Cash flows from operating activities 
 
 Profit/(Loss) before income tax                     (162)              (117)              (321) 
 
 Share-based compensation                                -                  -                  - 
 
 Finance income (cost)                                   -                  -                  - 
                                          ----------------   ----------------   ---------------- 
 Operating cash flows before movement 
  in working capital and provisions                  (162)              (117)              (321) 
 
 (increase)/decrease in trade 
  and other receivables                                (3)                  -                  2 
 
 (Decrease)/increase in trade 
  and other payables                                    93                 48                183 
                                          ----------------   ----------------   ---------------- 
 Net cash used in operating activities                (72)               (69)              (136) 
                                          ----------------   ----------------   ---------------- 
 
 Cash flows from investing activities 
 Interest received                                       -                  -                  - 
 Interest paid                                           -                  -                 27 
 Investment in own issued share                          -                  -                  - 
  capital 
                                          ----------------   ----------------   ---------------- 
 Net cash generated from investing 
  activities                                             -                  -                 27 
                                          ----------------   ----------------   ---------------- 
 
 Cash flows from financing activities 
 Increase in shareholder loans                           -                 44                  - 
 Issue of new shares                                    69                 14                109 
 Issue of convertible loan notes                        40                  -                  - 
                                          ----------------   ----------------   ---------------- 
                                                       109                 58                109 
                                          ----------------   ----------------   ---------------- 
 
 Net Increase/(decrease) in cash 
  and cash 
  equivalents                                           37               (11)                  - 
 
 Net cash and cash equivalents 
  at beginning of period                                16                 16                 16 
                                          ----------------   ----------------   ---------------- 
 Net cash and cash equivalents 
  at end of period                                      53                  5                 16 
 
 
 

EQUATORIAL MINING AND EXPLORATION PLC

NOTES TO THE ACCOUNTS

FOR SIX MONTHS ENDED 30 JUNE 2018

   1.   Basis of preparation of interim report 

The financial information for the period ended 30 June 2018 does not constitute statutory accounts as defined in section 434 of the Companies Act 2006. It has been prepared in accordance with the accounting policies set out in, and is consistent with, the audited financial statements for the twelve months ended 31 December 2017. A copy of the statutory accounts for the period has been delivered to the Registrar of Companies. The auditor's report on those accounts was unqualified and did not contain statements under Section 498 (2) or (3) of the Companies Act 2006.

   2.   Going concern 

The Directors are of the opinion that the financial information should be prepared on a going concern basis.

.

   3.   Earnings/(loss) per share 

Basic earnings/(loss) per share is calculated by dividing the earnings attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period.

For diluted earnings/(loss) per share, the weighted average number of ordinary shares in issue is adjusted to assume conversion of all dilutive potential ordinary shares.

The calculation of basic and diluted earnings/(loss) per share is based on the following figures.

 
                                     6 Months          6 Months           Year to 
                                           to                to       31 December 
                                      30 June           30 June              2017 
                                         2018              2017 
                                      GBP'000           GBP'000           GBP'000 
 
 Total profit/(loss) for 
  the period                            (162)             (117)             (294) 
 
                                       Number            Number            Number 
 
 Weighted average number 
  of shares 
  - basic                       7,142,441,000     5,971,538,354     6,062,772,493 
 
 Basic earnings/(loss) per 
  shares                             (0.002p)          (0.002p)          (0.005p) 
 
 Diluted earnings/(loss) 
  per share                          (0.002p)          (0.002p)          (0.005p) 
 
 
   4.   Reports 

A copy of this announcement will be mailed to shareholders and it is available on the company's website at www.equatorialmining.com

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

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(END) Dow Jones Newswires

October 10, 2018 08:38 ET (12:38 GMT)