Preliminary Results for year ended 30 June 2015

RNS Number : 8001G

GCM Resources PLC

24 November 2015

 

24 November 2015

GCM Resources plc

("GCM" or the "Company")

(AIM:GCM) 

Preliminary Results for the year ended 30 June 2015

GCM Resources plc (AIM:GCM), a resource exploration and development company, is pleased to report its preliminary results for the year ended 30 June 2015.

The Annual Report and Accounts for the year ended 30 June 2015 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 Michael Tang, Executive Chairman, stated:

The last twelve months have been challenging for the junior mining sector as commodity markets continue to deteriorate and raising new funding has become particularly difficult for any mining company that is not producing.

In contrast to the decline in global demand for coal, Bangladesh, where GCM's operations are located, is expected to see a significant increase in demand for high quality thermal coal in-country as the Government continues to restructure the country's power sector towards coal. The Bangladesh Government plans to generate over 19,000MW from coal by 2030, and is currently considering coal-fired power plants with a combined generation capacity of 13,316MW. While the current plans assume coal is imported there is a strong case for the country to use its own indigenous resources.

The Company agreed a two year, £3 million convertible loan facility on 29 May 2015 which may be drawn down as and when required and will assist in financially supporting GCM's activities as it continues to pursue approval of the Phulbari Coal Project (the Project). As at 30 June 2015 GCM had drawn down £0.2 million from the convertible loan facility (£0.51 million as at 19 November 2015). While achieving approval continues to be a challenge, the Board believes that it is in the best interests of all stakeholders that the Project is developed. To this end the Board's strategy is to present the Project to the satisfaction of the Government of Bangladesh and to secure an agreement that meets the objectives of both parties.

Understanding the importance of local community support the Company has continued its engagement activities throughout the year, retaining a working relationship with community leaders and understanding the views of local residents from a diverse range of backgrounds.  The Company has met around 2,500 people since it first started its re-engagement activities in late 2012.

Finally, we saw the successful closure of the OECD examination on 10 September 2015 after a thorough and impartial examination which first started in December 2012.  I reiterate our commitment that the Project developed by GCM will be undertaken with integrity and fairness for all stakeholders, and in adherence to the highest international and national environmental and social standards. The Project can be a catalyst for economic growth and social development both within the region and throughout the country and I look forward to making progress towards its implementation for the benefit of all stakeholders.

Our financial results reflect our focus on keeping costs under control while pursing Project approval. The Group incurred a loss of £0.9 million for the year ended 30 June 2015 compared to £1.3 million last financial year and £3.2 million in 2013.  Project related expenditure of £0.6 million for the year was also kept at a minimum (2014: £0.8 million).

I would like to thank the Board and staff for all their hard work over the last twelve months and to the shareholders for their continued perseverance and support during these challenging times.

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

		2015	2014
		£000	£000
Operating expenses
Exploration and evaluation costs		(75)	(109)
Share based payments		(177)	(570)
Administrative expenses		(688)	(633)
Operating loss		(940)	(1,312)
Finance revenue		4	10
Finance costs		(1)	-
Loss before tax		(937)	(1,302)
Taxation		-	-
Loss and total comprehensive income for the year		(937)	(1,302)
Loss per share
Basic (pence per share)		(1.5p)	(2.2p)
Diluted (pence per share)		(1.5p)	(2.2p)

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 2013	5,115	44,258	588	-	(13,088)	36,873
Total comprehensive loss	-	-	-	-	(1,302)	(1,302)
Shares issued during the year	1,171	1,148	-	-	-	2,319
Share issue transaction costs	-	(120)	-	-	-	(120)
Share based payments	-	-	(3)	-	570	567
Balance at 30 June 2014	6,286	45,286	585	-	(13,820)	38,337
Total comprehensive loss	-	-	-	-	(937)	(937)
Drawdown of convertible loan	-	-	-	40	-	40
Share based payments	-	-	13	-	177	190
Balance at 30 June 2015	6,286	45,286	598	40	(14,580)	37,630

Consolidated Balance Sheet

As at 30 June

		2015	2014
		£000	£000
Current assets
Cash and cash equivalents		169	1,332
Receivables		213	64
Total current assets		382	1,396
Non-current assets
Property, plant and equipment		32	35
Intangible assets		37,732	37,153
Receivables		60	-
Total non-current assets		37,824	37,188
Total assets		38,206	38,584
Current liabilities
Payables		(424)	(247)
Total current liabilities		(424)	(247)
Non-current liabilities
Borrowings		(152)	-
Total non-current liabilities		(152)	-
Total liabilities		(576)	(247)
Net assets		37,630	38,337
Equity
Share capital		6,286	6,286
Share premium account		45,286	45,286
Other reserves		638	585
Accumulated losses		(14,580)	(13,820)
Total equity		37,630	38,337

 

Consolidated Cash Flow Statement

For year ended 30 June

		2015	2014
		£000	£000
Cash flows from/(used in) operating activities
(Loss) before tax		(937)	(1,302)
Adjusted for:
Finance costs		1	-
Finance revenue		(4)	(10)
Share based payments		177	570
Other non-cash expenses		-	5
		(763)	(737)
Movements in working capital:
(Increase)/decrease in operating receivables		(68)	114
Increase/(decrease) in operating payables		15	(111)
Cash used in operations		(816)	(734)
Interest received		4	10
Net cash used in operating activities		(812)	(724)
Cash flows from/(used in) investing activities
Payments for property, plant and equipment		-	(1)
Payments for intangible assets		(551)	(849)
Net cash generated from/(used in) investing activities		(551)	(850)
Cash flows from/(used in) financing activities
Proceeds from convertible loan		200	-
Issue of ordinary share capital		-	2,319
Costs on issue of ordinary share capital		-	(120)
Net cash from financing activities		200	2,199
Total increase in cash and cash equivalents		(1,163)	625
Cash and cash equivalents at the start of the year		1,332	707
Cash and cash equivalents at the end of the year		169	1,332

 

The audited financial information for the years ended 30 June 2015 and 30 June 2014 contained in this document do 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 2014. 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 2015 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 emphasis of matter paragraphs on the Group's statutory financial statements for the year ended 30 June 2015. The emphasis of matter paragraphs are in relation to the recoverability of  intangible mining assets and going concern. The preliminary announcement was approved by the Board of Directors on 24 November 2015.

For further information:

GCM Resources plc James Hobson CFO & Company Secretary  [phone]	Bell Pottinger Public Relations Lorna Cobbett [phone]
ZAI Corporate Finance Ltd Nominated Adviser and Broker Tom Price [phone]

GCM Resources plc
Tel: [phone]
[e-mail]; www.gcmplc.com

 

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