Interim Results

RNS Number : 4435A

Landore Resources Limited

29 September 2015

 



29 September 2015

Landore Resources Limited

("Landore Resources" or the "Company")

Interim Results for the six months ended 30 June 2015

Landore is pleased to announce its interim results for the six months ended 30 June 2015.

For more information please contact:

Bill Humphries, Chief Executive Officer Richard Prickett, Finance Director Landore Resources Limited	Tel: [phone] Tel: [phone] www.landore.com
Angela Hallett / James Spinney Strand Hanson Limited Nominated Advisor and Broker	Tel: [phone]

Copies of the Interim statement are available on the website, www.landore.com 

MANAGEMENT DISCUSSION AND ANALYSIS

FOR THE SIX MONTHS ENDED 30 JUNE 2015

General

The following discussion of performance, financial condition and future prospects should be read in conjunction with the interim consolidated financial statements of the Group and notes thereto for the period from 1 January 2015 to 30 June 2015.  All amounts are stated in sterling.

Overview

Landore Resources Limited is listed on the Alternative Investment Market in London, with the trading symbol LND.L. The Company is based in Guernsey in the Channel Islands and its 100% owned operating subsidiary, Landore Resources Canada Inc, is engaged in the exploration and development of a portfolio of precious and base metal properties in North America.

Results of Operations

The financial results for the six months to 30 June 2015 show a loss of £1,180,977 (2014: loss £809,560). These results were in line with expectations.   Exploration costs were £466,518 (2014: £376,479).

During the period under review £nil (2014: £nil) was raised from the issue of shares.

The Group has no debt but will need to raise further equity in order to carry out its exploration and development activities, and also for working capital.

Corporate Strategy:

Landore is focussing on the highly prospective Junior Lake nickel-copper-cobalt-PGEs project, with the aim of growing its resource base to plus 100,000 tonnes of nickel equivalent (NiEq), to ultimately sell the project to a third party or enter into a joint venture partnership to develop the project.

To date Landore has delineated NI 43-101 compliant resources totalling 55,008 tonnes NiEq contained metal on the two main deposits the B4-7 and the VW, of which 93.6% is in the Indicated category. In addition there is the B4-7's Exploration Target, estimated to contain approximately 20,000 tonnes NiEq and the highly prospective Alpha Zone adjacent to the B4-7 which promises to add significant tonnage to the B4-7 resource.

Works completed on the Junior Lake property to date have clearly demonstrated the existence of a geological environment that is favourable for the deposition of magmatic nickel-copper sulphide mineralisation. Based on geological signatures and available geological knowledge, this favourable environment is believed to exist along a strike length of approximately 10 kilometres. At its widest, the favourable rock sequences are in the order of 1,000 to 1,500 metres in thickness.

2014-2015 Works:

Recent exploration works in 2014 and 2015, which included 3,250 metres deposit drilling and 6,216 metres of exploration drilling, returned highly encouraging results. Drilling in the B4-7 deposit identified additional high-grade Alpha Zone mineralisation in close proximity to the B4-7 main zone, as well as confirming additional B4-7 massive sulphide mineralisation within the B4-7's Exploration Target. Exploration drilling has confirmed an extension of a gold/copper bearing structure from the B4-7 deposit for 1,000 metres to line 1600E.

Encouraged by these results, Landore initiated a mineral potential investigation and geophysics review on the Junior Lake Property.

Mineral Potential Investigation:

Landore retained the services of RPA Inc. (RPA) independent engineers of Toronto, Canada, for the completion of a review and report of the B4-7 nickel-copper cobalt-PGEs deposit and VW nickel deposit information to include the above 2014-2015 drilling campaigns. As part of this investigation a re-assessment will be conducted of the Alpha Zone and Exploration Target for inclusion into the B4-7 resource, and recommendations will be made for further exploration including drilling, geotechnical and metallurgical works. The report will be to Canadian National Instrument NI 43-101 standards and is scheduled for completion the first week of October 2015.

Geophysics Review:

In support of the above investigation, Landore retained the services of Alan King M.Sc., Professional Geophysicist, an independent geophysicist of Sudbury, Canada, to review and interpret all geophysical survey data acquired by Landore to-date on the Junior Lake property. This independent report was announced on 21^st September 2015. 

As part of this review numerous targets for further exploration have been identified.

The full report is available on our website www.landore.com.

The Junior Lake property:

The Junior Lake property, 100% owned by Landore Resources, is located in the province of Ontario, Canada, approximately 235 kilometres north-northeast of Thunder Bay, and is host to;  the B4-7 Nickel-Copper-Cobalt-PGEs resource, the recently-identified Exploration Target and the Alpha Zone. Junior Lake also contains the VW Nickel resource and numerous other highly prospective mineral occurrences.

B4-7 Nickel-Copper-Cobalt-PGEs Resource:

RESOURCE CLASS	VOLUME (tonnes)	GRADE (% NiEq)	Contained Metal (tonnes NiEq)
Indicated	2,695,000	1.24	33,248

Exploration Target

1,500,000 to 2,000,000

~1.24

~20,000

The B4-7 resource estimate and report, completed by RPA Inc. (RPA) of Toronto, Canada in January 2013, is compliant with the requirements of National Instrument 43-101 (NI 43-101). The resource remains open down plunge at depth and along strike to the west.

VW Nickel Resource:

RESOURCE CLASS	VOLUME (tonnes)	GRADE (% NiEq)	Contained Metal (tonnes NiEq)
Indicated	3,730,000	0.49	21,760
Inferred	720,000	0.49

The VW resource estimate and report, completed in January 2010, is to NI 43-101 standards. The deposit remains open down plunge at depth and along strike to the east and to the west.

Planned Works:

Landore has embarked on a multi-phase works plan starting with the afore-mentioned studies (phase 1). Following the completion of these studies, Landore will commence phase 2 of its works programme consisting of metallurgical and geotechnical studies for optimisation of processing and pit parameters on both the B4-7 and VW deposits, together with drilling to test prospective geophysical targets as identified by the independent geophysicist.

The third phase of works, currently scheduled to commence in Q1 2016, consists of a definition drilling programme as per the independent engineers' recommendations to bring the Exploration Target and Alpha Zone into the NI 43-101-compliant B4-7 resource.

When results from the above works have been received, an updated resource estimate will be completed (phase 4).

For further information on Landore and the Group's projects please visit the website

www.landore.com 

LANDORE RESOURCES LIMITED

UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE SIX MONTHS ENDED 30 JUNE 2014

	Notes	Group Six months ended 30 June 2015 £		Group Six months ended 30 June 2015 £
Exploration costs	2	(466,518)		(376,479)
Other income		-		1,462
Administrative expenses		(715,773)		(468,664)
Operating loss		(1,182,291)		(843,681)
Finance income		1,314		34,121
Loss before income tax		(1,180,977)		(809,560)
Income tax expense		-		-
Loss for the period		(1,180,977)		(809,560)
Other comprehensive income/(loss):
Exchange difference on translating foreign
operations		233,520		(171,953)
Other comprehensive income/(loss) for the year
net of tax		233,520		(171,953)
Total comprehensive loss for the period		(947,457)		(981,513)
Loss attributable to:
Equity holders of the Company		(1,180,977)		(809,560)
Total comprehensive loss attributable to:
Equity holders of the Company		(947,457)		(981,513)
Loss per share attributable to the
equity holders of the Company during the year
- basic & diluted	3	(£0.002)		(£0.002)

The Group's operating loss relates to continuing operations.

The notes and accounting policies on pages 9 to 10 form part of these interim financial statements.

LANDORE RESOURCES LIMITED

UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE SIX MONTHS ENDED 30 JUNE 2015

	Share capital £	Share premium £	Share options £	Warrants £	Retained earnings £	Cumulative translation reserve £	Total £
Balance at 1 January 2014	4,134,838	26,653,862	707,775	-	(27,126,179)	(152,162)	4,218,134
Loss for the year	-	-	-	-	(809,560)	-	(809,560)
Other comprehensive losses in the year	-	-	-	-	-	(171,953)	(171,953)
Issue of ordinary share capital	-	-	-	-	-	-	-
Issue costs	-	-	-	-	-	-	-
Share option adjustment	-	-	(11,262)	-	20,290	-	9,028
Balance at 30 June 2014	4,134,838	26,653,862	696,513	-	(27,915,449)	(324,115)	3,245,649
Balance at 1 January 2015	5,174,838	28,084,421	858,019	33,690	(32,839,649)	(308,851)	1,002,468
Loss for the year	-	-	-	-	(1,180,977)	-	(1,180,977)
Other comprehensive gains in the year	-	-	-	-	-	233,520	233,520
Issue of ordinary share capital	-	-	-	-	-	-	-
Issue costs	-	-	-	-	-	-	-
Share option adjustments	-	-	-	-	-	-	-
Balance at 30 June 2015	5,174,838	28,084,421	858,019	33,690	(34,020,626)	(75,331)	55,011

The accounting policies and notes form part of these financial statements.

LANDORE RESOURCES LIMITED

UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AT 30 JUNE 2015

	Notes	Group As at 30 June 2015 £		Group As at 30 June 2014 £		Group As at 31 December 2015 £
Assets
Non current assets
Property, plant and equipment		43,733		61,312		53,297
Investments		-		75,740		-
		43,733		137,052		53,297
Current assets
Trade and other receivables		19,780		3,426,008		26,519
Cash and cash equivalents		208,304		89,380		1,072,243
		228,084		3,515,388		1,098,762
Total assets		271,817		3,652,440		1,152,059
Equity
Capital and reserves attributable to the Company's equity holders
Share capital	4	5,174,838		4,134,838		5,174,838
Share premium	4	28,084,421		26,653,862		28,084,421
Share options reserve		858,019		696,513		858,019
Warrants reserve		33,690		-		33,690
Retained earnings	5	(34,020,626)		(27,915,449)		(32,839,649)
Cumulative translation adjustment		(75,331)		(324,115)		(308,851)
Total equity		55,011		3,245,649		1,002,468
Liabilities
Non current liabilities
Income tax liabilities		-		-		-
		-		-		-
Current liabilities
Trade and other payables		185,905		373,848		116,411
Income tax liabilities		30,901		32,943		33,180
		216,806		406,791		149,591
Total liabilities		216,806		406,791		149,591
Total equity and liabilities		271,817		3,652,440		1,152,059

The notes and accounting policies form part of these interim financial statements.

LANDORE RESOURCES LIMITED

UNAUDITED CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE SIX MONTHS ENDED 30 JUNE 2015

	Group Six months ended 30 June 2015 £	Group Six months ended 30 June 2014 £
Cash flows from operating activities
Operating loss	(1,180,977)	(843,681)
Finance income	1,314	218,094
Depreciation of tangible fixed assets	6,096	8,326
Foreign exchange gain/(loss) on non-cash items	236,831	(35,799)
Share options	-	9,028
Decrease in receivables	6,739	14,085
Increase in payables	67,215	18,155
Net cash outflow from operating activities	(862,782)	(611,792)
Cash flows from investing activities
Purchase of property, plant and equipment	-	-
	-	-
Cash flows from financing activities
Issue of ordinary share capital	-	-
Issue costs	-	-
	-	-
Net (decrease) in cash and cash equivalents	(862,782)	(611,792)
Cash and cash equivalents at beginning of period	1,072,249	699,633
Exchange (loss)/gain on cash and cash equivalents	(1,163)	1,539
Cash and cash equivalents at end of period	208,304	89,380

The notes and accounting policies form part of these interim financial statements

LANDORE RESOURCES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED 30 JUNE 2015

1          Basis of accounting and accounting policies

The financial statements have been prepared in accordance with those International Financial Reporting Standards ("IFRS") and International Financial Reporting Interpretations Committee ("IFRIC") interpretations issued and effective or issued and early adopted as at the time of preparing these financial statements (September 2015).  The Directors have elected not to apply IAS34 Interim Financial Reporting.

The financial statements have not been audited and have been prepared on the historical cost basis. The principal accounting policies adopted are consistent with those adopted in the annual accounts to 31 December 2014.

2          Exploration expenditure and mineral properties

	1 January 2015 £		Net Expenditure in period £		Accumulated expenditure 30 June 2015 £
Junior Lake/Lamaune Lake	15,440,796		468,169		15,908,965
Miminiska Lake	1,519,001		1,014		1,520,015
Lessard	697,920		(992)		696,928
Frond Lake	79,177		1,195		80,372
Wottam	61,558		-		61,558
Other/including Swole Lake and West Graham	63,238		(2,868)		60,370
	17,861,690		466,518		18,328,208

            Mineral properties at 30 June 2015 represent accumulated costs to date incurred by Landore Resources Canada Inc., a subsidiary of Landore Resources Limited. On acquisition of Landore Resources Canada Inc. on 5 April 2006 the fair value of those costs incurred to date was considered to be £nil. All subsequent expenditure in the period has been charged to the income statement in accordance with the group accounting policy.

3          Loss per share

The loss per share is based on the loss for the period and the weighted number of ordinary shares in issue during the period, being 517,483,825 (2014: 413,483,825).

Diluted loss per share

The potential ordinary shares which arise as a result of the options in issue are not dilutive under the terms of IAS 33 because they would not increase the loss per share. Accordingly there is no difference between the basic and dilutive loss per share.

4          Share capital

		30 June 2015 £		1 January 2015 £
Issued: 517,483,825 ordinary shares of 1 penny each		5,174,838		5,174,838

		Share Capital 2015 £		Share premium 2015 £
At 1 January 2015 and 30 June 2015		5,174,838		28,084,421

5          Profit and loss reserve

				£
At 1 January 2015				(32,839,649)
Loss for the period				(1,180,977)
At 30 June 2015				(34,020,626)

 

END

 

 

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