Greatland Gold PLC : Final Results
Greatland Gold plc
("Greatland" or "the Company")
Greatland Gold plc (AIM:GGP), the gold focused mineral exploration and development company based in Australia, announces its financial results for the year ended 30 June 2012.
Chairman's Statement
The year to June 2012 was a period of significant activity for your Company, including ongoing activities at Ernest Giles and commencement of work at Firetower by our JV partner Unity Mines Ltd (ASX:UML).
Overall, the last 12 months has seen substantial progress across all aspects of our gold exploration programme. Aside from drilling at Ernest Giles in Western Australia, and (post period on 24 July 2012) at Firetower in Tasmania, earlier stage work moved along at all of Greatland's assets.
At the beginning of June 2012, the Board announced a fundraising of £375,000 before expenses, via the placing of 50,000,000 ordinary shares of 0.1p each at a price of 0.75p per share. This money was raised to provide working capital for the Company whose activities are spread across a wide variety of locations and stages. These funds enable us to remain active with our exploration efforts.
Gold continues to perform well, albeit off its highs of $1,923 in early September 2011. However, sitting consistently above $1,500 across the last twelve months it, in my view, remains underpinned as a safe asset in a volatile global market.
We continue to remain amenable to further third party interest at our other projects, following the operational success of Firetower. As we have previously stated on several occasions to the market, we see this as a clear and obvious way to advance our exploration activities, whilst benefitting from the more substantial progress a larger investment brings.
I would like to express my most sincere gratitude to Greatland's loyal shareholders. Knowing full well that newsflow is the lifeblood of an AIM company's investment case, we will continue to keep shareholders updated as to our progress, at every available opportunity via the Stock Exchange and our website (www.greatlandgold.com). The Board also expresses its gratitude to Paul Askins, a founding director, who retired late last year. We thank him once again for his contributions and wish him very well for the future.
Andrew R. McM. Bell
Chairman
10 September 2012
Chief Executive's Review of Operations and Finance
In the year ending 30 June 2012 the Group reported a slightly increased net loss of £590,828 equating to a loss per share of 0.19 pence (30 June 2011: loss of 0.17pence).
Net cash outflow for the year was £376,344 which reflects total administrative expenses plus exploration expenses. The Group's cash deposits stood at £717,117 at the period end.
Shareholders will know that we have three 'core' projects, Ernest Giles, Firetower and Warrentina. Our highest priority during 2012 was Ernest Giles which comprises three contiguous tenements covering 948 sq km in central Western Australia. Following the necessary Government approvals, and lead up work, drilling was carried out on a number of targets across the licences. Towards the end of the period we announced initial results from early stage drilling.
In the southern licence drilling showed mineralisation occurring at shallower depths than expected. The rocks intersected included a typical greenstone sequence of basalt and banded iron formation with quartz veining and sulphide mineralisation to 10%. Rocks showed visible alteration, quartz veining and structural deformation. The highest mineralised intercept was 4m at 106ppb (parts per billion) gold from 149m. As a comparison, background gold levels are typically less than 5ppb. This result was seen as encouraging as it confirms a mineralised system at shallower depths than previously thought.
Strong progress has been made at the Firetower project, which consists of four contiguous tenements covering an area of 265 sq km located 65km west of Launceston in Northern Tasmania. The project has an initial JORC inferred resource of 90,000oz gold.
In October 2011 we announced we had secured a farm in agreement with Unity Mining Ltd. Unity Mining can earn up to 75% of the Firetower Gold project for an expenditure of A$7m over a five and half year period.
Interpretation of geology and structural features from detailed satellite imagery has been undertaken by Unity Mining, and all necessary government approvals were received for diamond drilling at the Firetower and Firetower West prospects. At the time of writing this report, and as published to the market on 24 July 2012, drilling has now commenced at the site.
Finally, moving to our Warrentina project, which consists of several historic goldfields over 30km of strike, the Company has single metre mineralised intercepts up to 103g/t gold at the Derby North area.
Surface sampling and mapping has been completed on additional gold occurrences within the central parts of the project area. Results have returned subtle gold in soil anomalies peaking at 5ppb gold that may represent strike extensions to known mineralisation. Additional drilling at the Derby North area is scheduled for late Q4 2012.
Our remaining projects of Bromus, Lackman Rock and East Lisle have also seen developments. At Bromus and Lackman Rock, which covers prospective greenstone near the prolific mining district of Norseman in Western Australia, we received encouraging auger geochemical soil sampling results. While at East Lisle, located about 30km north-east of Launceston in north-east Tasmania, the company has completed surface sampling and mapping.
I am pleased to report that we continue to receive third party enquiries relating to joint ventures across our licences and I firmly believe that the Greatland asset portfolio will unlock significant value for investors; we remain focussed on delivering the best results for our shareholders.
Callum N Baxter
Chief Executive
10 September 2012
Results and dividends
The Group's results are described in the Group statement of comprehensive income below as are the audited financial statements for the year ended 30 June 2012 The Group has incurred a loss for the year of £590,828 (2011: £506,060).
The Directors do not recommend the payment of a dividend.
The Group's results have been audited by Messrs Chapman Davis LLP who have signed an unqualified report.
Group statement of comprehensive income
for the year ended 30 June 2012
| Year ended 30 June 2012 £ | Year ended 30 June 2011 £ | |
| Revenue | - | - |
| Exploration costs | (372,957) | (340,857) |
| Administrative expenses | (222,380) | (206,185) |
| Operating loss | (595,337) | (547,042) |
| Finance revenue Grant received | 4,509 - | 3,710 37,272 |
| Loss before taxation | (590,828) | (506,060) |
| Income tax expense | - | - |
| Loss for the year | (590,828) | (506,060) |
| Other comprehensive income Exchange differences on translation of foreign operations | (18,692) | 97,349 |
| (Loss)/gain on revaluation of available for sale investments | (15,680) | 25,441 |
| Other comprehensive income for the year net of taxation | (34,372) | 122,790 |
| Total comprehensive income for the year attributable to equity holders of the parent company | (625,200) | (383,270) |
| Loss per share - basic and diluted | (0.19) pence | (0.17) pence |
All operations are considered to be continuing.
Group balance sheet
as at 30 June 2012
| 30 June 2012 | 30 June 2011 | |||
| £ | £ | £ | £ | |
| ASSETS | ||||
| Non-current assets Tangible assets | 31,806 | 6,036 | ||
| Intangible assets | 1,075,747 | 973,240 | ||
| 1,107,553 | 979,276 | |||
| Current assets Cash and cash equivalents Trade and other receivables Available for sale financial assets | 717,117 68,337 59,952 | 1,097,900 67,444 77,259 | ||
| Total current assets | 845,406 | 1,242,603 | ||
| TOTAL ASSETS | 1,952,959 | 2,221,879 | ||
| LIABILITIES | ||||
| Current liabilities Trade and other payables | (43,622) | (49,092) | ||
| TOTAL LIABILITIES | (43,622) | (49,092) | ||
| NET ASSETS | 1,909,337 | 2,172,787 | ||
EQUITYCalled-up share capitalShare premium reserve Share based payment reserve Retained earnings | 350,661 4,256,610 - (3,035,692) | 300,661 3,944,860 74,443 (2,519,307) | ||
| Other reserves | 337,758 | 372,130 | ||
TOTAL EQUITY | 1,909,337 | 2,172,787 | ||
Group statement of changes in equity
for the year ended 30 June 2012
Share capital | Share premium account | Share based payment reserve | Retained earnings | Other reserves | Total | |
| £ | £ | £ | £ | £ | £ | |
As at 30 June 2010 | 289,550 | 3,718,471 | 74,443 | (2,013,247) | 249,340 | 2,318,557 |
Loss for the year | - | - | - | (506,060) | - | (506,060) |
Gain on revaluation of available for sale investments | - | - | - | - | 25,441 | 25,441 |
Currency translation differences | - | - | - | - | 97,349 | 97,349 |
Total comprehensive income | - | - | - | (506,060) | 122,790 | (383,270) |
Share capital issued | 11,111 | 238,889 | - | - | - | 250,000 |
Cost of share issue | - | (12,500) | - | - | - | (12,500) |
Total contributions by and distributions to owners of the Company | 11,111 | 226,389 | - | - | - | 237,500 |
As at 30 June 2011 | 300,661 | 3,944,860 | 74,443 | (2,519,307) | 372,130 | 2,172,787 |
Loss for the year | - | - | - | (590,828) | - | (590,828) |
(Loss) on revaluation of available for sale investments | - | - | - | - | (15,680) | (15,680) |
Currency translation differences | - | - | - | - | (18,692) | (18,692) |
Total comprehensive income | - | - | - | (590,828) | (34,372) | (625,200) |
Share options expired | - | - | (74,443) | 74,443 | - | - |
Share capital issued | 50,000 | 325,000 | - | - | - | 375,000 |
Cost of share issue | - | (13,250) | - | - | - | (13,250) |
Total contributions by and distributions to owners of the Company | 50,000 | 311,750 | - | - | - | 361,750 |
As at 30 June 2012 | 350,661 | 4,256,610 | - | (3,035,692) | 337,758 | 1,909,337 |
Group statement of changes in equity
for the year ended 30 June 2012, continued
Other reserves | Merger reserve | Foreign currency translation reserve | Available for sale financial assets reserve | Total other reserves |
| £ | £ | £ | £ | |
As at 30 June 2010 | 225,000 | 143,861 | (119,521) | 249,340 |
Gain on revaluation of available for sale investments | - | - | 25,441 | 25,441 |
Currency translation differences | - | 116,856 | (19,507) | 97,349 |
Total comprehensive income | - | 116,856 | 5,934 | 122,790 |
As at 30 June 2011 | 225,000 | 260,717 | (113,587) | 372,130 |
(Loss) on revaluation of available for sale investments | - | - | (15,680) | (15,680) |
Currency translation differences | - | (67,302) | 48,610 | (18,692) |
Total comprehensive income | - | (67,302) | 32,930 | (34,372) |
As at 30 June 2012 | 225,000 | 193,415 | (80,657) | 337,758 |
Company balance sheet
as at 30 June 2012
| 30 June 2012 | 30 June 2011 | |||
| £ | £ | £ | £ | |
| ASSETS | ||||
| Non-current assets Investment in subsidiary | 250,000 | 250,000 | ||
| Current assets Cash and cash equivalents Trade and other receivables | 693,447 2,462,589 | 955,402 2,097,149 | ||
| Total Current Assets | 3,156,036 | 3,052,551 | ||
| TOTAL ASSETS | 3,406,036 | 3,302,551 | ||
| LIABILITIES | ||||
| Current Liabilities Trade and other payables | (25,995) | (35,960) | ||
| TOTAL LIABILITIES | (25,995) | (35,960) | ||
| NET ASSETS | 3,380,041 | 3,266,591 | ||
EQUITYCalled-up share capitalShare premium reserve Share based payment reserve Merger reserve | 350,661 4,256,610 - 225,000 | 300,661 3,944,860 74,443 225,000 | ||
| Retained earnings | (1,452,230) | (1,278,373) | ||
TOTAL EQUITY | 3,380,041 | 3,266,591 | ||
Company statement of changes in equity
for the year ended 30 June 2012
Called up share capital | Share premium account | Share based payment reserve | Retained earnings | Merger reserve | Total | |
| £ | £ | £ | £ | £ | £ | |
As at 30 June 2010 | 289,550 | 3,718,471 | 74,443 | (1,025,400) | 225,000 | 3,282,064 |
Loss for the year | - | - | - | (252,973) | - | (252,973) |
Total comprehensive income | - | - | - | (252,973) | - | (252,973) |
Share capital issued | 11,111 | 238,889 | - | - | - | 250,000 |
Cost of share issue | - | (12,500) | - | - | - | (12,500) |
Total contributions by and distributions to owners of the Company | 11,111 | 226,389 | - | - | - | 237,500 |
As at 30 June 2011 | 300,661 | 3,944,860 | 74,443 | (1,278,373) | 225,000 | 3,266,591 |
Loss for the year | - | - | - | (248,300) | - | (248,300) |
Total comprehensive income | - | - | - | (248,300) | - | (248,300) |
Share options expired | - | - | (74,443) | 74,443 | - | - |
Share capital issued | 50,000 | 325,000 | - | - | - | 375,000 |
Cost of share issue | - | (13,250) | - | - | - | (13,250) |
Total contributions by and distributions to owners of the Company | 50,000 | 311,750 | - | - | - | 261,750 |
As at 30 June 2012 | 350,661 | 4,256,610 | - | (1,452,230) | 225,000 | 3,380,041 |
Group cash flow statement
for the year ended 30 June 2012
| Year ended 30 June 2012 £ | Year ended 30 June 2011 £ | |
| Cash (out)flows from operating activities Operating loss (Increase) in trade & other receivables (Decrease) in trade & other payables Depreciation Grant received | (595,337) (893) (5,470) 3,942 - | (547,042) (5,222) (164,812) 1,571 37,272 |
| Net (decrease) in cash and cash equivalents from operations | (597,758) | (678,233) |
| Cash (out)flows from investing activities Interest received Payments to acquire intangible assets Receipts from sale of tangible assets Payments to acquire tangible assets | 4,509 (117,888) 5,802 (32,759) | 3,710 (228,634) - - |
| Net cash flows used in investing activities | (140,336) | (224,924) |
| Cash inflows from financing activities Proceeds from issue of shares Transaction costs of issue of shares | 375,000 (13,250) | 250,000 (12,500) |
| Net cash flows from financing activities | 361,750 | 237,500 |
| Net (decrease) in cash and cash equivalents | (376,344) | (665,657) |
| Cash and cash equivalents at the beginning of period | 1,097,900 | 1,752,949 |
| Exchange (loss)/gain on cash and cash equivalents | (4,439) | 10,608 |
| Cash and cash equivalents at end of period | 717,117 | 1,097,900 |
Company cash flow statement
for the year ended 30 June 2012
| Year ended 30 June 2012 £ | Year ended 30 June 2011 £ | |
| Cash flows from operating activities Operating loss (Increase)/decrease in trade & other receivables (Decrease) in trade & other payables | (249,287) (5,440) (9,965) | (254,943) 964 (36,773) |
| Net (decrease) in cash and cash equivalents from operations | (264,692) | (290,752) |
| Cash (out)flows from investing activities Interest received Loans to subsidiary | 987 (360,000) | 1,970 (730,000) |
| Net cash flows used in investing activities | (359,013) | (728,030) |
| Cash inflows from financing activities Proceeds from issue of shares Transaction costs of issue of shares | 375,000 (13,250) | 250,000 (12,500) |
| Net cash flows from financing activities | 361,750 | 237,500 |
| Net (decrease) in cash and cash equivalents | (261,955) | (781,282) |
| Cash and cash equivalents at the beginning of period | 955,402 | 1,736,684 |
| Cash and cash equivalents at end of period | 693,447 | 955,402 |
Notes
| 1 | Authorisation of financial statements and statement of compliance with IFRS The group financial statements of Greatland Gold plc for the year ended 30 June 2012 were authorised for issue by the board on 10 September 2012 and the balance sheets signed on the board's behalf by Mr Callum Baxter and Mr Andrew Bell. Greatland Gold plc is a public limited company incorporated and domiciled in England and Wales. The Company's ordinary shares are traded on AIM. The Group's financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS). The Company's financial statements have been prepared in accordance with IFRS as adopted by the European Union and as applied in accordance with the provisions of the Companies Act 2006. The principal accounting policies adopted by the Group and Company are set out below. |
| 2 | Dividends No dividends were paid or proposed by the Directors. (2011: £Nil) |
| 3 | Loss per share | ||||
The basic loss per share is derived by dividing the loss for the period attributable to ordinary shareholders by the weighted average number of shares in issue. | |||||
| 2012 £ | 2011 £ | ||||
Loss for the period | (590,828) | (506,060) | |||
Weighted average number of Ordinary shares of £0.001 in issueLoss per share - basic | 303,939,800 (0.19) pence | 290,037,062 (0.17) pence | |||
Weighted average number of Ordinary shares of £0.001 in issue inclusive of outstanding options | 303,939,800 | 296,037,062 | |||
As inclusion of the potential Ordinary shares would result in a decrease in the loss per share they are considered to be anti-dilutive; as such, a diluted earnings per share is not included. | |||||
Enquiries:
Greatland Gold plc
Grant Thornton Corporate Finance
Newgate Threadneedle
Graham Herring/Beth Harris
Tel +44 (0)20 7653 9850
Notes to Editors
About Greatland Gold
The principal activity of Greatland Gold plc is to explore for and develop natural resources, with a focus on gold. The Company was established in London during 2005 and admitted to AIM in July 2006.
The board seeks to increase shareholder value by the systematic evaluation of its existing resource assets, as well as the acquisition of suitable exploration and development projects and producing assets.
The Company operates in Australia where it has projects located in Western Australia and Tasmania.
Greatland has a UK and Australian based board of directors with a head office in London and exploration offices in Australia.
The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of the
information contained therein.
Source: Greatland Gold PLC via Thomson Reuters ONE
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