Interim Results

RNS Number : 1485D

Bezant Resources PLC

26 March 2014

 



26 March 2014

Bezant Resources Plc

("Bezant" or the "Company")

Interim Results for the six months ended 31 December 2013

Bezant (AIM: BZT), the AIM listed copper-gold exploration and development company operating in the Philippines and Argentina, announces its unaudited interim results for the six months ended 31 December 2013. 

Highlights:

Corporate:

·           Reflecting our ongoing exploration activities, the Group made a consolidated loss after tax of £798,000 (31 December 2012: £769,000).

·           Approximately £3 million cash at bank at the period end (31 December 2012: £3.37 million).

·           Bezant remains well funded to pursue its ongoing exploration work programmes in the Philippines and Argentina.

Mankayan Copper-Gold Project, Philippines (the "Mankayan Project"):

·           Gold Fields Netherlands Services BV ("Gold Fields") continued its due diligence work programme on the Mankayan Project during the reporting period, involving:

o  Drilling of hole BC-60, positioned to intersect the eastern part of the deposit at greater depth;

o  Review and verification of all pre-existing technical data including re-assaying of certain drill core; and

o  Funding of the 2013 licence commitments.

Eureka Copper-Gold Project, Argentina (the "Eureka Project"):

·           Phase One exploration programme completed on our wholly-owned Eureka Project, involving:

o   Analysis of 68 samples taken from the 17 trenches excavated.

o   Average 1.68 per cent. copper content for the samples assayed.

o   Trenching activity comprising extensions to existing work and infill trenches in order to demonstrate the continuity of mineralised bodies.

·           Assay results to date strongly support the project's potential and confirm previous sample values.

Post Period End:

·      Formal notification received from Gold Fields that it would not be exercising its exclusive option to purchase Bezant's subsidiary holding the Mankayan Project.

·      Gold Fields elected not to exercise its option over the Mankayan Project due to its internal restructuring and requirement to focus on its existing producing assets.

·      Bezant subsequently received all data generated from Gold Fields' work on the property, including drilling and assay results.  Review of Gold Fields' results confirmed Bezant's own technical work and increased the known easterly depth extent of the deposit.

·      The Company's Board has decided to scale down the group's Argentinian exploration activities and expenditure in order to better focus on the potential future sale or joint venture of the Mankayan Project to an alternative acquirer or suitable joint venture partner.

Bernard Olivier, Chief Executive Officer of Bezant, commented:

"The exploration work carried out by Gold Fields on our Mankayan Project during the reporting period has demonstrated that at least one part of the project is open at significant depth. Following Gold Fields' decision not to exercise its exclusive option, due to its own restructuring issues, we retain full ownership of their data as we now look to secure a new potential acquirer or partner for the project. We have taken the decision to scale back our exploration work in Argentina in order to better focus on delivering a satisfactory outcome for the future of our Mankayan Project."

For further information, please contact: Bernard Olivier Chief Executive Officer, Bezant Resources Plc     Laurence Read Non-Executive Director, Bezant Resources Plc                            James Harris / Matthew Chandler / James Dance Strand Hanson Limited                                                           James Maxwell N+1 Singer                                               or visit http://www.bezantresources.com  Tel: [phone] Tel: [phone] Tel: [phone] Tel: [phone]

Chairman's Statement

I am pleased to present the Group's unaudited results and Interim Report for the six month period ended 31 December 2013. Reflecting our ongoing exploration activities, the unaudited consolidated results for the six month period ended 31 December 2013 show a loss after tax of £798,000 (31 December 2012: £769,000). The Group had approximately £3m cash at bank at the period end (31 December 2012: £3.37m) and remains well funded to continue its ongoing exploration activities.

Mankayan Project, Philippines

During the reporting period, Gold Fields continued its due diligence work on the Mankayan Project which included the drilling of hole BC-60, positioned to intersect the eastern part of the deposit at greater depth and representing the longest hole drilled to date on the project, as well as reviewing and verifying all of our pre-existing technical data on the project, including the re-logging and re-assaying of certain drill core.

Eureka Project, Argentina

Bezant's Board continues to believe that the Eureka Project represents an undervalued asset given its near surface mineralisation, which has historically supported basic mining operations, with significant potential for realising future value in a major, well established, copper-gold province in Argentina. During the reporting period, the Company concluded Phase One of its exploration programme which consisted of a trenching campaign aimed at delineating extensions to known copper mineralisation and proving the continuity of mineralised zones by infill trenching.

A total of 17 trenches were excavated and 68 samples selected and dispatched for analysis; 50 samples were selected on the Eureka I Mine tenement over a strike extension of over 2.5km. The remaining 18 samples were taken at various localities along the potential extent of the mineralised zone. Samples were prepared on site and then dispatched to ALS Geochemistry ("ALS"), Mendoza, Argentina, for copper and multi-element analysis. 

The assay results returned a very encouraging average 1.68 per cent. copper content for the samples assayed. Copper (Cu) assay values ranged from 0.23 per cent. to as high as 6.09 per cent., with 46 samples returning Cu values in excess of 1 per cent. 

Initial indications are that the lithological makeup of the samples is well suited to copper extraction by heap or dump leaching. Agglomeration to prevent fines migration might not be necessary due to the low clay mineral content. Furthermore, the low carbonate content suggests the potential for very low acid consumption in leaching.

Post-Period End:

In late January 2014, the Company received formal notification from Gold Fields that it would not be exercising its exclusive option over the Company's subsidiary, Asean Copper Investments Limited, which holds the Mankayan copper-gold project in the Philippines. Gold Fields stated that its decision not to exercise its option was due to internal restructuring and the need to focus on its producing assets, such as its recently acquired Yilgarn assets in Western Australia.

Accordingly, the Board has now re-initiated the extensive process undertaken prior to entering into exclusivity with Gold Fields in 2011, seeking to achieve the potential divestment of the Company's interest in the Mankayan Project. Forming a long term commercial or joint venture partnership to finance and/or assist with the further evaluation and development of the Mankayan Project remains a possible option, although, as in 2011, the Company continues to believe that an outright sale of the project is the most suitable and least risky objective for the Company as this would maximise the potential return to its shareholders. The Board is therefore re-engaging in preliminary discussions with those parties who have historically expressed an interest in the project, as well as identifying new potentially interested parties within the mining and industrials sectors.  Bezant has also re-assumed responsibility for funding the ongoing licence commitments in respect of the Mankayan Project.

Following due consideration, the Board has recently decided to reduce the group's Argentinian work programme and its associated costs in order to better focus on the potential future sale or joint venture of the Mankayan Project.

I would again like to thank all those who work with us for their valuable advice and assistance and our shareholders and other stakeholders for their support and continuing interest in our activities.

Dr Evan Kirby

Non-Executive Chairman

25 March 2014

Interim Financial Information of Bezant Resources Plc

The following interim financial information of Bezant Resources Plc is for the period from 1 July 2013 to 31 December 2013.  The interim financial information was approved by the Board of Directors on 25 March 2014.

Bezant Resources Plc

Consolidated Statement of Comprehensive Income

For the period ended 31 December 2013

	Unaudited Period ended 31 December 2013 £'000		Unaudited Period ended 31 December 2012 £'000		Audited Year ended 30 June 2013 £'000
Continuing operations
Group revenue	-		-		-
Cost of sales	-		-		-
Gross profit/(loss)	-		-		-
Depreciation	(9)		(6)		(13)
Other administrative expenses	(701)		(716)		(1,274)
Total administrative expenses	(710)		(722)		(1,287)
Group operating loss	(710)		(722)		(1,287)
Interest receivable	1		3		7
Share of Associates' loss	(89)		(50)		(118)
Loss before taxation	(798)		(769)		(1,398)
Taxation	-		-		-
Loss for the period	(798)		(769)		(1,398)
Attributable to: Equity holders of the Company	(798)		(769)		(1,398)
Other comprehensive (expense)/income:
Foreign currency reserve movement	(206)		(84)		85
Other comprehensive (expense)/income for the period	(206)		(84)		85
Total comprehensive (expense)/income for the period attributable to equity holders of the Company	(1,004)		(853)		(1,313)
Loss per share (pence)
Basic	(0.96p)		(1.18p)		(1.90p)
Diluted	(0.96p)		(1.18p)		(1.90p)

Bezant Resources Plc

Consolidated Statement of Changes in Equity

For the period ended 31 December 2013

	Share Capital £'000	Share Premium £'000	Other Reserves £'000	Retained Losses £'000	Total Equity £'000
Unaudited - period ended 31 December 2013
Balance at 1 July 2013	166	31,053	618	(20,664)	11,173
Current period loss	-	-	-	(798)	(798)
Foreign currency reserve	-	-	(206)	-	(206)
Total comprehensive expense for the period	-	-	(206)	(798)	(1,004)
Balance at 31 December 2013	166	31,053	412	(21,462)	10,169

Unaudited - period ended 31 December 2012
Balance at 1 July 2012	784	30,974	533	(19,266)		13,025
Current period loss	-	-	-	(769)		(769)
Foreign currency reserve	-	-	(84)	-		(84)
Total comprehensive expense for the period	-	-	(84)	(769)		(853)
Balance at 31 December 2012	784	30,974	449	(20,035)		12,172

Audited - year ended 30 June 2013
Balance at 1 July 2012	784	30,974	533	(19,266)	13,025
Current year loss	-	-	-	(1,398)	(1,398)
Foreign currency reserve	-	-	85	-	85
Total comprehensive expense for the period	-	-	85	(1,398)	(1,313)
Share issues	36	4,625	-	-	4,661
Capital return	(654)	(4,546)	-	-	(5,200)
Balance at 30 June 2013	166	31,053	618	(20,664)	11,173

Bezant Resources Plc

Consolidated Balance Sheet

As at 31 December 2013

	Notes	Unaudited 31 December 2013 £'000		Unaudited 31 December 2012 £'000		Audited 30 June 2013 £'000
ASSETS
Non-current assets
Investment in associates	4	7,418		7,591		7,696
Plant and equipment		64		35		87
Exploration and evaluation assets	5	4,796		4,801		4,796
		12,278		12,427		12,579
Current assets
Cash and cash equivalents		2,998		3,370		3,826
Trade and other receivables	6	82		39		77
		3,080		3,409		3,903
Total assets		15,358		15,836		16,482
LIABILITIES
Current liabilities
Trade and other payables	7	20		54		140
Deposit on grant of option	8	5,169		3,610		5,169
		5,189		3,664		5,309
Total liabilities		5,189		3,664		5,309
Net assets		10,169		12,172		11,173
EQUITY
Share capital	9	166		784		166
Share premium	9	31,053		30,974		31,053
Other reserves	10	412		449		618
Retained losses		(21,462)		(20,035)		(20,664)
Shareholders' equity		10,169		12,172		11,173

Bezant Resources Plc

Consolidated Cash Flow Statement

For the period ended 31 December 2013

	Notes	Unaudited Period ended 31 December 2013 £'000		Unaudited Period ended 31 December 2012 £'000		Audited Year ended 30 June 2013 £'000
Net cash outflow from  operating activities	11	(624)		(796)		(1,528)
Cash flows from  investing activities
Payments for plant and equipment		-		-		(55)
Payments to fund exploration		-		(20)		(20)
Loans to associates		-		(50)		(39)
Interest received		1		3		7
Deposit for grant of option		-		-		1,559
Other income		36		26		38
Net cash (outflow)/inflow from  investing activities		(587)		(837)		1,490
Cash flows from financing activities
Cash proceeds from issue of shares		-		-		4,661
Capital return		-		-		(5,200)
Net cash outflow from  financing activities		-		-		(539)
Decrease in cash and cash equivalents		(587)		(837)		(577)
Cash and cash equivalents at  beginning of period		3,826		4,287		4,287
Foreign exchange movement		(241)		(80)		116
Cash and cash equivalents at end  of period		2,998		3,370		3,826

Bezant Resources Plc

Notes to the Interim Financial Information

For the period ended 31 December 2013

1.         Accounting policies

The principal accounting policies applied in the preparation of these interim financial statements are set out below. These policies have been consistently applied to all the periods presented, unless otherwise stated below.

1.1        Basis of preparation

This interim report, which incorporates the financial information of the Company and its subsidiary undertakings (the "Group"), has been prepared using the historical cost convention, on a going concern basis and in accordance with International Financial Reporting Standards ("IFRS") including IAS 34 'Interim Financial Reporting' and IFRS 6 'Exploration for and Evaluation of Mineral Resources', as adopted by the European Union ("EU").

These interim results for the six months ended 31 December 2013 are unaudited and do not constitute statutory accounts as defined in section 434 of the Companies Act 2006.  The financial statements for the year ended 30 June 2013 have been delivered to the Registrar of Companies and the auditors' report on those financial statements was unqualified and did not contain a statement made under Section 498(2) or Section 498(3) of the Companies Act 2006.

Basis of consolidation

The consolidated financial statements incorporate the financial statements of the Company and its subsidiary undertakings and have been prepared using the principles of acquisition accounting, which includes the results of the subsidiaries from their dates of acquisition.

All intra-group transactions, income, expenses and balances are eliminated fully on consolidation.

A subsidiary undertaking is excluded from the consolidation where the interest in the subsidiary undertaking is held exclusively with a view to subsequent resale and the subsidiary undertaking has not previously been consolidated in the consolidated accounts prepared by the parent undertaking.

Business combination

On acquisition, the assets and liabilities and contingent liabilities of a subsidiary are measured at their fair values at the date of acquisition. Any excess of the cost of acquisition over the fair values of the identifiable net assets acquired is recognised as goodwill. Any deficiency of the cost of acquisition below the fair values of the identifiable net assets acquired (i.e. discount on acquisition) is credited to profit and loss in the period of acquisition. The interest of minority shareholders is stated at the minority's proportion of the fair values of the assets and liabilities recognised. Subsequently, any losses applicable to the minority interest in excess of the minority interest are allocated against the interests of the parent. 

Investment in associate companies is accounted for using the equity method.

1.2        Exploration, evaluation and development expenditure

Exploration, evaluation and development expenditure incurred is accumulated in respect of each identifiable area of interest. These costs are only carried forward as assets to the extent that they are expected to be recouped through the successful development of the area or where activities in the area have not yet reached a stage which permits reasonable assessment of the existence of economically recoverable reserves.  Accumulated costs in relation to an abandoned area are written off in full against profit in the year in which the decision to abandon the area is made. When production commences, the accumulated costs for the relevant area of interest are amortised over the life of the area according to the rate of depletion of the economically recoverable reserves. A regular review is undertaken of each area of interest to determine the appropriateness of continuing to carry forward costs in relation to that area of interest.

Costs of site restoration are provided when an obligating event occurs from when exploration commences and are included in the costs of that stage. Site restoration costs include the dismantling and removal of mining plant, equipment and building structures, waste removal and the rehabilitation of the site in accordance with clauses of the mining permits.  Such costs have been determined using estimates of future costs, current legal requirements and technology on a discounted basis. Any changes in the estimates for the costs concerned are accounted for on a prospective basis. In determining the costs of site restoration, there is uncertainty regarding the nature and extent of the restoration due to community expectations and future legislation. Accordingly, the costs have been determined on the basis that restoration will be completed within one year of abandoning the site.

1.3        Share based payments

The Company has historically made share-based payments to certain directors and advisers by way of the issue of share options. The fair value of these payments is calculated by the Company using the Black Scholes option pricing model. The expense is recognised on a straight line basis over the period from the date of award to the date of vesting, based on the Company's best estimate of the shares that will eventually vest.

1.4        Foreign currency transactions and balances

            (i) Functional and presentational currency

Items included in the Group's financial statements are measured using Pounds Sterling ("£"), which is the currency of the primary economic environment in which the Group operates ("the functional currency").  The financial statements are presented in Pounds Sterling ("£"), which is the functional currency of the Company and is the Group's presentational currency.

The individual financial statements of each Group company are presented in the functional currency of the primary economic environment in which it operates.

(ii) Transactions and balances

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing on the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at period end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the income statement.

Transactions in the accounts of individual Group companies are recorded at the rate of exchange ruling on the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the rates ruling at the balance sheet date.  All differences are taken to the income statement.

For the purpose of presenting consolidated financial statements, the assets and liabilities of the Group's foreign operations are translated at exchange rates prevailing on the balance sheet date. Income and expense items are translated at the average exchange rates for the period. Exchange differences arising are classified as equity and transferred to the Group's translation reserve. Such translation differences are recognised as income or as expenses in the period in which the operation is disposed of.

2.         Loss per share

The basic loss per ordinary share has been calculated using the loss for the period of £798,000 (31 December 2012: loss of £769,000; 30 June 2013: loss of £1,398,000) and the weighted average number of ordinary shares in issue of 82,939,525 (31 December 2012: 64,993,603; 30 June 2013: 73,401,145).

The diluted loss per share has been calculated using a weighted average number of shares in issue and to be issued of 86,312,229 (31 December 2012: 67,689,734; 30 June 2013: 76,773,849). Where there has been a diluted loss per share, that loss has been kept the same as the basic loss per share as the conversion of share options decreases the basic loss per share, thus being anti-dilutive.

3.	Segment reporting
	For the purposes of segmental information, the operations of the Group are focused in three geographical segments, namely: the UK, the Philippines and Argentina and comprise one class of business: the exploration, evaluation and development of mineral resources. The UK is used for the administration of the Company. The Group's operating loss arose from its operations in the UK, the Philippines and Argentina.

	Segment reporting
	For the period ended 31 December 2013
			UK	Philippines		Argentina	Total
			£'000	£'000		£'000	£'000
	Consolidated operating loss		(687)	(14)		(97)	(798)
	Included in the consolidated operating loss are the following income/(expense) items:
	Foreign currency gain/(loss)		(239)	8		(6)	(237)
	Interest received		1	-		-	1
	Depreciation		(2)	(7)		-	(9)
	Total Assets		3,017	7,471		4,870	15,358
	Total Liabilities		(17)	(5,169)		(3)	(5,189)

	Segment reporting
		For the period ended 31 December 2012
				UK	Philippines		Argentina	Total
				£'000	£'000		£'000	£'000
		Consolidated operating loss		(706)	(50)		(13)	(769)
		Included in the consolidated operating loss are the following income/(expense) items:
		Depreciation		(6)	-		-	(6)
		Interest received		3	-		-	3
		Foreign currency gain/(loss)		(78)	-		-	(78)
		Total Assets		3,420	7,591		4,825	15,836
		Total Liabilities		(54)	(3,610)		-	(3,664)

	Segment reporting
	For the year ended 30 June 2013
			UK	Philippines		Argentina	Total
			£'000	£'000		£'000	£'000
	Consolidated operating loss		(1,227)	(118)		(53)	(1,398)
	Included in the consolidated operating loss are the following income/(expense) items:
	Depreciation		(7)	-		(6)	(13)
	Interest received		7	-		-	7
	Foreign currency gain/(loss)		121	-		-	121
	Total Assets		3,907	7,696		4,879	16,482
	Total Liabilities		(134)	(5,169)		(6)	(5,309)

4.         Investment in associates accounted for using the equity method of accounting

          Group

	Unaudited 31 December 2013 £'000		Unaudited 31 December 2012 £'000		Audited 30 June 2013 £'000
Investment in Crescent Mining and Development Corporation	5,247		5,371		5,303
Loan due from Crescent Mining and Development Corporation	2,171		2,220		2,393
	7,418		7,591		7,696

5.         Exploration and evaluation assets

          Group

	Unaudited 31 December 2013 £'000		Unaudited 31 December 2012 £'000		Audited 30 June 2013 £'000
Opening balance	4,796		4,784		4,784
E&E costs incurred	-		17		20
	4,796		4,801		4,804
E&E costs expensed	-		-		(8)
Deferred exploration and evaluation assets	4,796		4,801		4,796

6.         Trade and other receivables

          Group

	Unaudited 31 December 2013 £'000		Unaudited 31 December 2012 £'000		Audited 30 June 2013 £'000
VAT refundable	8		19		14
Directors' Loan	5		9		-
Other Debtors	61		1		63
Prepayments	8		10		-
	82		39		77

7.         Trade and other payables

          Group

	Unaudited 31 December 2013 £'000		Unaudited 31 December 2012 £'000		Audited 30 June 2013 £'000
Trade payables	8		31		36
Other payables & accruals	4		23		104
	12		54		140

8.         Deposit on grant of option

          Group

	Unaudited 31 December 2013 £'000		Unaudited 31 December 2012 £'000		Audited 30 June 2013 £'000
Deposit on grant of option	5,169		3,610		5,169
	5,169		3,610		5,169

            The Group received a deposit for an option to dispose of its subsidiary, Asean Copper Investments Limited. The balance, net of transaction expenses, was recognised as deferred income.

            On 21 January 2014, the Group received a formal notification from Gold Fields Netherlands Services BV that it would not be exercising its exclusive option over Asean Copper Investments Limited which holds the Group's Mankayan copper-gold project in the Philippines.  Subsequent to the reporting date, the deferred income will therefore be recognised in the Income Statement.

9.         Share capital and options

          Group

Class	Nominal value		Unaudited 31 December 2013 Number		Unaudited 31 December 2012 Number		Audited 30 June 2013 Number
Authorised
Ordinary	0.2p		5,000,000,000		690,432,500		5,000,000,000
Deferred	4p		-		7,959,196		-
Deferred	99p		-		339,581		-
Allotted, called up and fully paid
Ordinary	0.2p		82,939,525		64,993,603		82,939,525
Deferred	4p		-		7,959,196		-
Deferred	99p		-		339,581		-

 Special resolutions were passed on 7 May 2013 approving, inter alia, the cancellation and extinguishment of all of the issued deferred shares and the distribution of 8 pence per ordinary share, further to the capital reduction, in respect of each ordinary share held at the record date other than in respect of any of the 17,945,922 ordinary shares which were transferred by Gold Fields Netherlands Services BV on or around 22 March 2013 to Vidacos Nominees Limited. 

Class

Nominal value

Unaudited 31 December 2013 £'000

Unaudited 31 December 2012 £'000

Audited 30 June 2013 £'000

Allotted, called up and fully paid
Ordinary	0.2p		166		129		166
Deferred	4p		-		319		-
Deferred	99p		-		336		-
			166		784		166

Share premium account	31,053		30,974		31,053

          Share options

          Details of share options outstanding as at 31 December 2013 are as follows:

	Unaudited 31 December 2013 Number		Unaudited 31 December 2012 Number		Audited 30 June 2013 Number
Opening balance	3,641,892		2,197,800		3,372,704
Granted during the period	-		-		269,188
	3,641,892		2,197,800		3,641,892

10.        Other reserves

          Group

(i) Share-based payment reserve	Unaudited 31 December 2013 £'000		Unaudited 31 December 2012 £'000		Audited 30 June 2013 £'000
Opening balance	265		265		265
Share-based payments - charge	-		-		-
Closing balance	265		265		265

(ii) Foreign currency reserve	Unaudited 31 December 2013 £'000		Unaudited 31 December 2012 £'000		Audited 30 June 2013 £'000
Opening balance	353		268		268
Movement in reserve	(206)		(84)		85
Closing balance	147		184		353

Other reserves	Unaudited 31 December 2013 £'000		Unaudited 31 December 2012 £'000		Audited 30 June 2013 £'000
(i) Share-based payment reserve	265		265		265
(ii) Foreign currency reserve	147		184		353
Total reserves	412		449		618

11.        Reconciliation of operating cash flows to net cash outflows from operating activities

	Unaudited 31 December 2013 £'000		Unaudited 31 December 2012 £'000		Audited 30 June 2013 £'000
Group operating loss	(710)		(722)		(1,287)
Depreciation	9		6		13
Foreign exchange loss/(gain)	237		78		(121)
VAT refunds received	(36)		(26)		(38)
Increase in trade and other receivables	(5)		(4)		(52)
Decrease in trade and other payables	(119)		(128)		(43)
Net cash outflow from operating activities	(624)		(796)		(1,528)

12.        Commitments

The Company has committed to provide continued financial support to its associate in the Philippines and has indicated that it will not call upon its loan advances to that entity before 31 December 2014.

13.        Subsequent events

On 21 January 2014, the Group received a formal notification from Gold Fields Netherlands Services BV that it would not be exercising its exclusive option over Asean Copper Investments Limited which holds the Group's Mankayan copper-gold project in the Philippines. 

Apart from the abovementioned notification, there has not arisen in the interval between the half year end date and the date of this report any item, transaction or event of a material or unusual nature likely, in the opinion of the directors of the Company, to effect:

(i)    The Company's operations in future financial periods; or

(ii)    The results of those operations in future financial periods; or

(iii)   The Company's state of affairs in future financial periods.

14.        Contingent liabilities

Litigation is ongoing against the Group relating to an historic alleged claim for a 40% interest in the Mankayan Project, as disclosed in June 2007 at the time of the Group's acquisition of Asean Copper Investments Limited. The information usually required by IAS 37 is not disclosed, because the Board of Directors believe that to do so would seriously prejudice the outcome of the case. The Board of directors are confident that the Group will successfully defend this claim.

15.        Availability of Interim Report

A copy of these interim results will be available from the Company's registered office during normal business hours on any weekday at Level 6, Quadrant House, 4 Thomas More Square, London E1W 1YW and can also be downloaded from the Company's website at www.bezantresources.com. Bezant Resources Plc is registered in England and Wales with company number 02918391.      

INDEPENDENT REVIEW REPORT BY THE AUDITORS

TO BEZANT RESOURCES PLC 

Introduction

We have been engaged by the Company to review the condensed financial statements in the interim results for the six months ended 31 December 2013 which comprises the Group Statement of Comprehensive Income, the Group Statement of Changes in Equity, the Group Balance Sheet, the Group Cash Flow Statement and the related notes.  We have read the other information contained in the interim results and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.

Directors' Responsibilities

The interim results are the responsibility of, and have been approved by, the directors. The directors are responsible for preparing the interim results in accordance with the AIM Rules for Companies.

As disclosed in note 1.1, the annual financial statements of the Group will be prepared in accordance with IFRSs as adopted by the European Union. The condensed set of financial statements included in the interim results has been prepared in accordance with International Accounting Standard 34, Interim Financial Reporting, as adopted by the European Union.

Our Responsibility

Our responsibility is to express to the Company a conclusion on the condensed set of financial statements in the interim results based on our review.

Scope of review

We conducted our review in accordance with the International Standard on Review Engagements (UK and Ireland) 2410, Review of Interim Financial Information Performed by the Independent Auditor of the Entity, issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the condensed financial statements in the interim results for the six months ended 31 December 2013 is not prepared, in all material respects, in accordance with International AccountingStandard 34 as adopted by the European Union and the AIM Rules for Companies.

UHY Hacker Young LLP

Chartered Accountants

Registered Auditors

London

25 March 2014

 

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