Final Results

RNS Number : 8905W

GCM Resources PLC

17 November 2017

 

17 November 2017

GCM Resources plc

("GCM" or the "Company")

(AIM:GCM) 

Final Results for the year ended 30 June 2017

GCM Resources plc (AIM:GCM), a resource exploration and development company, is pleased to report its preliminary results for the year ended 30 June 2017.

Highlights:

·      GCM is reshaping the Phulbari Coal and Power Project into a holistic power solution, to be in line with the objectives of the Government of Bangladesh;

·      Signed a Memorandum of Understanding with China Gezhouba Group International Engineering Co Limited ("CGGC") with respect to a proposed 2,000MW mine-mouth power plant in November 2016;

·      Received a completed technical pre-feasibility study (PFS) on the proposed power plant from CGGC in July 2017;

·      Discussions with CGGC continue  to agree a joint development framework agreement;

·      GCM recorded a loss of £1.0 million for the year ended 30 June 2017 (2016:  £1.0 million)

The Annual Report and Accounts for the year ended 30 June 2017 will be posted on the Company's website today (www.gcmplc.com) and will shortly be mailed to shareholders. Copies will also be available on request from the Company.

In the Chairman's Statement Datuk Michael Tang PJN, Executive Chairman, stated:

"Progress is being made to reposition the Company's mining project into a holistic power solution, in line with the objectives of the Government of Bangladesh (Government), which is to significantly expand power generation in order to support long term economic growth and social development in the country.

"In November 2016 we were very pleased to begin our strategic relationship with China Gezhouba Group International Engineering Co Limited (CGGC) by signing a Memorandum of Understanding (MOU). The MOU enabled the parties to collaborate in a new proposal to construct an initial 2,000MW mine-mouth power plant in conjunction with the Phulbari coal mine.

"CGGC is an internationally recognised engineering company with infrastructure projects across the world. CGGC's businesses cover the design, construction, investment and operation in power, water conservancy, highways, railways, bridges, municipal works, airports, ports, waterways, industrial and civil buildings, as well as real estate and coal mining.

"At the beginning of 2017 CGGC began a technical pre-feasibility study (PFS) on the proposed power plant with the assistance of GCM. This was successfully completed and announced on 14 July 2017.

"We are honoured to be working with the high calibre CGGC team and much encouraged by their interest in further developing the relationship. The parties are currently in discussions to agree a joint development framework agreement which will set out the respective roles and responsibilities, and enable the parties to move forward with the Project.

"By combining the planned coal mine with the proposed 2,000MW mine-mouth power plant in conjunction with CGGC, we are reshaping the Phulbari Coal and Power Project to become an integrated power proposition which we anticipate will be attractive to the Government.

"An additional 2,000MW to the Bangladesh energy grid would make a substantial contribution to the country and assist the Government in meeting its long-term aim of having 57,000 MW of installed power generating capacity by 2041 from a diversified energy sector. The Project could support up to a further 4,000MW at the mine-mouth and/or at other strategic sites within Bangladesh.

"Continuing its focus on minimising costs and conserving cash, the Group recorded a loss of £1.0 million for the year ended 30 June 2017 (2016:  £1.0 million). Capitalised Project related expenditure for the year ended 30 June 2017 amounted to £1.8 million (2016: £0.7 million), which included non-cash expenditure of £1.3 million.

"Looking forward, we recognise the significant challenges ahead in developing the combined power plant and mine proposal, and achieving the necessary approvals from the Government, the timing of which remains in the hands of the authorities. We are determined to continue adding shareholder value, by pursuing the development of the Project to the benefit of shareholders, Bangladesh and the local communities."

The Income Statement, Statement of Comprehensive Income, Statement of Changes in Equity, Balance Sheet and Cash Flow are presented on the following pages:

Consolidated Statement of Comprehensive Income

For year ended 30 June

		2017	2016
		£000	£000
Operating expenses
Exploration and evaluation costs		(53)	(40)
Share based payments		-	(271)
Administrative expenses		(654)	(663)
Operating loss		(707)	(974)
Finance revenue		-	-
Finance costs		(299)	(69)
Loss before tax		(1,006)	(1,043)
Taxation		-	-
Loss for the year		(1,006)	(1,043)
Other comprehensive income		-	-
Total comprehensive income for the year		(1,006)	(1,043)
Loss per share
Basic (pence per share)		(1.6p)	(1.7p)
Diluted (pence per share)		(1.6p)	(1.7p)

Consolidated Statement of Changes in Equity              

For year ended 30 June

	Share capital	Share premium account	Share based payments not settled	Convertible loan equity component	Accumulated losses	Total
	£000	£000	£000	£000	£000	£000
Balance at 1 July 2015	6,286	45,286	598	40	(14,580)	37,630
Total comprehensive loss	-	-	-	-	(1,043)	(1,043)
Drawdown of convertible loan	-	-	-	129	-	129
Share based payments	-	-	11	-	271	282
Balance at 30 June 2016	6,286	45,286	609	169	(15,352)	36,998
Total comprehensive loss	-	-	-	-	(1,006)	(1,006)
Share issuances	1,529	879	-	-	-	2,408
Share based payments	-	-	9	-	-	9
Transfer of convertible loan equity component on share issue	-	-	-	(169)	169	-
Balance at 30 June 2017	7,815	46,165	618	-	(16,189)	38,409

Consolidated Balance Sheet

As at 30 June

		2017	2016
		£000	£000
Current assets
Cash and cash equivalents		180	194
Other receivables		52	136
Total current assets		232	330
Non-current assets
Property, plant and equipment		27	29
Intangible assets		40,179	38,387
Total non-current assets		40,206	38,416
Total assets		40,438	38,746
Current liabilities
Payables		(1,028)	(684)
Borrowings		(1,001)	(1,064)
Total current liabilities		(2,029)	(1,748)
Total liabilities		(2,029)	(1,748)
Net assets		38,409	36,998
Equity
Share capital		7,815	6,286
Share premium account		46,165	45,286
Other reserves		618	778
Accumulated losses		(16,189)	(15,352)
Total equity		38,409	36,998

 

Consolidated Cash Flow Statement

For year ended 30 June

		2017	2016
		£000	£000
Cash flows from/(used in) operating activities
(Loss) before tax		(1,006)	(1,043)
Adjusted for:
Finance costs		299	69
Share based payments		-	271
Other non-cash expenses		50	-
		(657)	(703)
Movements in working capital:
(Increase)/decrease in operating receivables		(6)	91
Increase/(decrease) in operating payables		280	223
Cash used in operations		(383)	(389)
Net cash used in operating activities		(383)	(389)
Cash flows from/(used in) investing activities
Payments for property, plant and equipment		(4)	(2)
Payments for intangible assets		(477)	(603)
Net cash generated from/(used in) investing activities		(481)	(605)
Cash flows from/(used in) financing activities
Proceeds from borrowing		850	1,019
Net cash from financing activities		850	1,019
Total increase in cash and cash equivalents		(14)	25
Cash and cash equivalents at the start of the year		194	169
Cash and cash equivalents at the end of the year		180	194

The audited financial information for the years ended 30 June 2017 and 30 June 2016 contained in this document does not constitute statutory accounts as defined in the Companies Act 2006. The comparative financial information is based on the statutory accounts for the financial year ended 30 June 2016. Those accounts, upon which the auditors issued an unqualified opinion with emphasis of matter paragraphs, have been delivered to the Registrar of Companies. The financial information for the year ended 30 June 2017 has been extracted from the financial statements of GCM Resources plc which will be delivered to the Registrar of Companies in due course. The auditors have issued an unqualified opinion with an emphasis of matter paragraph on the Group's statutory financial statements for the year ended 30 June 2017. The emphasis of matter paragraph is in relation to going concern. The preliminary announcement was approved by the Board of Directors on 17 November 2017.

This announcement contains inside information as defined in Article 7 of the EU Market Abuse Regulation No 596/2014 and has been announced in accordance with the Company's obligations under Article 17 of that Regulation.

For further information:

GCM Resources plc James Hobson Finance Director  [phone]	Northland Capital Partners Ltd Nominated Adviser and Broker Tom Price Matthew Johnson [phone]
GCM Resources plc
Tel: [phone]
[e-mail]; www.gcmplc.com

 

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