Half Yearly Report

RNS Number : 8090O

Premier Gold Resources PLC

25 September 2013

 

Embargoed: 0700hrs 25 September 2013

Premier Gold Resources plc

("Premier Gold" or the "Company")

Half yearly results for the six months ended 30 June 2013

Premier Gold (AIM: PGR), the Central Asia-focused gold exploration and development company, announces its half yearly results for the six months ended 30 June 2013.

Chairman's Statement

A number of material developments occured during the period under review which add to the strength and prospects of the Company's Cholokkaindy gold licence in the Kyrgyz Republic.

In February 2013, Premier Gold was successful in achieving a licence extension on Cholokkaindy through to 31 December 2017. A few months later, in May 2013, the Company announced the sanctioning of an 8 square kilometre extension of the licence boundary, into an area in which the Company believes the mineralised zone further extends. This has an obvious beneficial impact on the size of the future potential resource at Cholokkaindy.

Exploration work to date at Cholokkaindy has produced highly encouraging results. Geological results support the view that Cholokkaindy is one large mineralising system, displaying several key indicators associated with other large gold deposits in the northern Tien Shan metallogenic belt. Central to the Company's ability to prove up this view is its capacity to fund further exploration work. It was therefore pleasing to be able to announce, on 2 July 2013 (immediately after the period under review), a further funding package which provides the Company with an additional £1 million by way of a convertible loan receivable in four quarterly tranches. The first £250,000 was received by the Company on [30] June 2013.

Financial Results

Premier Gold is an early-stage exploration company and, as such, has no revenues. Its expenditure relates primarily to activities in respect of the exploration and analysis of the Cholokkaindy licence. The Company recorded a loss before tax for the period of £807,930 (H12012: £669,008).

Outlook

With the benefit of the funding, the Company plans to upgrade and extend the areas of known mineralisation and to undertake a drilling programme to allow a three dimensional picture of the mineralisation to be assessed.The Company looks forward to reporting operational developments in respect of these objectives as soon as it is in a position to do so.

Colonel Robert Stewart DSO MP

Chairman

25 September 2013

Contacts:

Premier Gold Resources plc
Richard Nolan, CEO	020 7953 4028
Sanlam Securities UK Limited (Nominated Adviser and Broker)
Lindsay Mair / Richard Goldsmith / Catherine Miles	020 7628 2200
Vigo Communications
Ben Simons / Chris McMahon	020 7016 9574

About Premier Gold Resources plc

Premier Gold Resources plc (AIM:PGR) is a gold exploration and development company listed on the London Stock Exchange. Premier Gold is focused on gold opportunities in Central Asia, in particular the Kyrgyz Republic, where the Company's current project, Cholokkaindy, is undergoing extensive exploration and analysis.

Cholokkaindy is a 32 square kilometre licence area located in the northern Tien Shan, 20 kilometres south of Kara Balta and 80 kilometres southwest of Bishkek. Geological results from Premier Gold's work programme to date support the view that Cholokkaindy is one large mineralising system, displaying several key indicators associated with other large gold deposits in the northern Tien Shan metallogenic belt.

For further information please visit: www.premiergoldresources.com

Premier Gold Resources Plc

Interim results

For the six months ended 30 June 2013

Consolidated statement of comprehensive income

		Six months ended		Six months ended		Year ended
		30 June		30 June		31 December
		2013		2012		2012
		(unaudited)		(unaudited)		(audited)
		£		£		£
Revenue		-		-		-
Cost of sales		-		-		-
Gross profit		-		-		-
Administrative expenses		(401,553)		(639,309)		(1,232,234)
Share based payments		(12,333)		(34,453)		(69,655)
Operating loss		(413,886)		(673,762)		(1,301,889)
Finance income		141		4,754		1,802
Fair value loss on derivative financial assets		(394,185)				(193,750)
Finance expense		-		-		(34,523)
Loss before income taxation		(807,930)		(669,008)		(1,528,360)
Income tax expense		-		(1,588)		-
Loss for the period and total comprehensive income attributable to owners of the parent		(807,930)		(670,596)		(1,528,360)
Non-controlling interests		22,411		27,719		54,618
Loss for the period		(785,519)		(642,877)		(1,473,742)
Loss per share -
Basic and diluted		(0.08)p		(0.11)p		(0.22)p

Consolidated statement of financial position

As at 30 June 2013

		30 June		30 June		31 December
		2013		2012		2012
		(unaudited)		(unaudited)		(audited)
		£		£		£
ASSETS
Non-current assets
Intangible assets		3,845,293		3,070,477		3,780,831
Property, plant and equipment		19,898		30,227		23,789
Derivative financial assets		196,875		-		436,719
Total non-current assets		4,062,066		3,100,704		4,241,339
Current assets
Inventory		2,675		4,070		68
Trade and other receivables		64,126		165,256		117,699
Derivative financial assets		114,844		-		369,531
Cash and cash equivalents		44,921		443,411		181,857
Total current assets		226,566		612,737		669,155
Total assets		4,288,632		3,713,441		4,910,494
LIABILITIES
Current liabilities
Trade and other payables		(422,078)		(51,984)		(218,145)
Total liabilities		(422,078)		(51,984)		(218,145)
Net current assets		(195,512)		560,753		451,010
Net assets		3,866,554		3,661,457		4,692,349
EQUITY
Equity attributable to owners of the parent
Called up share capital		1,951,415		1,624,540		1,951,415
Share premium account		5,932,983		5,085,030		5,932,983
Capital redemption reserve		43,333		43,333		43,333
Merger reserve		2,416,667		2,416,667		2,416,667
Retained earnings		(7,043,765)		(5,472,696)		(6,268,359)
Foreign currency reserve		445		-		26,230
		3,301,078		3,696,874		4,102,269
Non-controlling interests		565,476		(35,417)		590,080
Total equity		3,866,554		3,661,457		4,692,349

Statement of changes in equity

For the six months ended 30 June 2013

									Foreign		Capital				Non
		Share			Share		Retained		currency		redemption		Merger		controlling
		capital			premium		earnings		reserve		reserve		reserve		interests		Total
		£			£		£		£		£		£		£		£
Unaudited
Balance at 1 January 2013		1,951,415			5,932,983		(6,268,359)		26,230		43,333		2,416,667		590,080		4,692,349
Total comprehensive income for the period		-			-		(785,519)		-		-		-		(22,411)		(807,930)
Equity settled share based payment		-			-		12,333		-		-		-		-		12,333
Currency translation differences on foreign currency net investments		-			-		(2,220)		(25,785)		-		-		(2,193)		(30,198)
Balance at 30 June 2013		1,951,415			5,932,983		(7,043,765)		445		43,333		2,416,667		565,476		3,866,554
Unaudited
Balance at 1 January 2012		1,471,207			4,821,530		(4,864,272)		-		43,333		-		-		1,471,798
Total comprehensive income for the period		-			-		(642,877)		-		-		-		(27,719)		(670,596)
Issue of shares		153,333			280,000		-		-		-		-		-		433,333
Costs in respect of shares issued		-			(16,500)		-		-		-		-		-		(16,500)
On acquisition of subsidiaries		-			-		-		-		-		2,416,667		(7,698)		2,408,969
Equity settled share based payment		-			-		34,453		-		-		-		-		34,453
Balance at 30 June 2012		1,624,540			5,085,030		(5,472,696)		-		43,333		2,416,667		(35,417)		3,661,457
Audited
Balance at 1 January 2012		1,471,207			4,821,530		(4,864,272)		-		43,333		-		-		1,471,798
Total comprehensive income for the year		-			-		(1,473,742)		-		-		-		(54,618)		(1,528,360)
On acquisition of subsidiaries			-		-		-		-		-		-		642,950		642,950
Issue of shares			480,208		1,260,625		-		-		-		-		-		1,740,833
Costs in respect of shares issued			-		(149,172)		-		-		-		-		-		(149,172)
On acquisition of subsidiaries			-		-		-		-		-		2,416,667		-		2,416,667
Equity settled share based payment			-		-		69,655		-		-		-		-		69,655
Currency translation differences on foreign currency net investments			-		-		-		26,230		-		-		1,748		27,978
Balance at 31 December 2012			1,951,415		5,932,983		(6,268,359)		26,230		43,333		2,416,667		590,080		4,692,349

Cash flow statement

For the six months ended 30 June 2013

		Six months ended		Six months ended		Year ended
		30 June		30 June		31 December
		2013		2012		2012
		(unaudited)		(unaudited)		(audited)
		£		£		£
Operating activities
Operating loss		(413,886)		(673,762)		(1,301,889)
Depreciation of property plant and equipment		4,685		3,965		8,334
Amortisation of intangible assets		45		-		-
Loss on disposal of property, plant and equipment		35		-		-
(Increase)/decrease in inventory		(2,607)		698		4,700
Decrease in trade and other receivables		53,573		21,733		659,899
Increase/(decrease) in trade and other payables within one year		203,933		(128,003)		(551,141)
Equity-settled share based payment		12,333		34,453		69,655
Income tax paid		-		(1,176)		-
Other movement		(42,932)		-		39,093
Cash outflows from operating activities		(184,821)		(742,092)		(1,071,349)
Investing activities
Finance income		141		4,754		1,802
Finance expense		-		-		(34,523)
Net generated from/(cash used in) investing activities		141		4,754		(32,721)
Capital expenditure
Payments to acquire intangible assets		(52,602)		(83,695)		(154,613)
Payments to acquire property, plant and equipment		-		(7,073)		(5,805)
Net cash outflow for capital expenditure		(52,602)		(90,768)		(160,418)
Acquisitions and disposals
Purchase of subsidiary undertakings		-		(3,170)		(3,170)
Cash acquired on acquisition of subsidiary undertaking		-		21,760		21,760
Net cash generated from acquisitions and disposals		-		18,590		18,590
Financing activities
Issue of share capital		100,346		350,000		557,500
Costs in respect of share issue		-		(16,500)		(49,172)
Net cash generated from financing activities		100,346		333,500		508,328
Net decrease cash and cash equivalents		(136,936)		(476,016)		(737,570)
Cash and cash equivalents at start of period		181,857		919,427		919,427
Cash and cash equivalents at end of period		44,921		443,411		181,857

 Notes to the interim financial statements

1          General information

Premier Gold Resources Plc is a company incorporated in the United Kingdom, which is listed on the Alternative Investment Market of the London Stock Exchange Plc. The address of its registered office is Stonebridge House, Chelmsford Road, Hatfield Heath, Essex CM22 7BD. The Group is primarily involved in the exploration for gold.

2          Financial information

The interim financial information for the six months ended 30 June 2013 has not been audited or reviewed and does not constitute statutory accounts within the meaning of Section 434 of the Companies Act 2006. The comparative financial information for the year ended 31 December 2012 has been derived from the audited financial statements for that period. A copy of those statutory financial statements for the year ended 31 December 2012 has been delivered to the Registrar of Companies. The report of the independent auditors on those financial statements was unqualified and did not contain a statement under Sections 498 (2) or (3) of the Companies Act 2006.

The interim financial statements have been prepared in accordance with International Financial Reporting Standards ('IFRS') as adopted by the European Union, IFRIC interpretations and the Companies Act 2006 applicable to companies reporting under IFRS and under the historical cost convention. They have also been on a basis consistent with the accounting policies expected to be applied for the year ending 31 December 2013 and which are also consistent with those set out in the statutory accounts of the Company for the year ended 31 December 2012, except for the adoption of new standards and interpretations.

3          Taxation

On the basis of these accounts there is no tax charge for the period.

4          Earnings per share

The earnings and number of shares used in the calculation of earnings per share are as follows:

		Six months ended		Six months ended		Year ended
		30 June		30 June		31 December
		2013		2012		2012
		(unaudited)		(unaudited)		(audited)
Basic and diluted
Loss for the financial period		(807,930)		(669,008)		(1,528,360)
Weighted average number of shares		1,008,953,458		616,488,833		658,129,232
Loss per share		(0.08)p		(0.11)p		(0.23)p

There was no dilutive effect in respect of the share options and warrants outstanding during the period.

5          Dividends

The directors do not propose to declare a dividend for the period.

6          Derivative financial assets

In December 2012, the Company issued 250 million new shares of 0.1p per share at a price of 0.4p per share to Lanstead Capital L.P. ('Lanstead') with a notional value of £1 million. The Company entered into an equity swap price mechanism with Lanstead for a notional 75% of these shares with a notional reference price of 0.5333p per share. Lanstead have hedged the consideration they pay for shares in the Company against the performance of the Company's share price over a 24 month period. All 250 million shares were allotted with full rights on the date of the transaction.

To the extent that the share price is greater or lower than the reference price at each swap settlement, the Company will receive greater or lower consideration calculated on pro-rata basis i.e. share price / reference price multiplied by the monthly transfer amount.  The valuation for each settlement is determined to be the average share price for the preceding 5 trading days up to settlement date.

As the amount of the consideration receivable by the Company from Lanstead will vary subject to the change in the Company's share price and will be settled in the future, the receivable is treated as a derivative financial asset and has been designated at fair value through profit or loss.

The Company also issued 25 million shares to Lanstead as a value payment in connection with the equity swap agreement.

The fair value of the derivative financial assets has been determined by reference to the Company's share price and has been estimated as follows:

		Notional		Fair
		number of		value
	Share	outstanding
	price	shares
		Number		£
Unaudited
Value of derivative at 1 January 2013		187,500,000		806,250
Consideration received		(39,062,500)		(100,346)
		148,437,500		705,904
Loss on revaluation of derivative financial asset				(394,185)
Value of derivative financial assets at 30 June 2013	0.21p			311,719
Due within one year		93,750,000		196,875
Due after more than one year		54,687,500		114,844
		148,437,500		311,719
Unaudited
There are no comparative figures for the six months ended 30 June 2012 as the derivative financial assets were only acquired in December 2012.

		Number		£
Audited
Value recognised on inception (notional)	0.5333p	187,500,000		1,000,000
Loss on revaluation of derivative				(193,750)
Value of derivative financial assets at 31 December 2012	0.43p			806,250
Due within one year		85,937,500		369,531
Due after more than one year		101,562,500		436,719
		187,500,000		806,250

7          Share capital

		30 June 2013				30 June 2012
		Number		£		Number		£
		(unaudited)		(unaudited)		(unaudited)		(unaudited)
Allotted, called up and fully paid
Ordinary shares of 0.1p each		1,008,953,458		1,008,953		682,078,458		682,078
Deferred shares of 0.1p each		942,462,000		942,462		942,462,000		942,462
				1,951,415				1,624,540
		31 December 2012
		Number		£
		(audited)		(audited)
Allotted, called up and fully paid
Ordinary shares of 0.1p each		1,008,953,458		1,008,953
Deferred shares of 0.1p each		942,462,000		942,462
				1,951,415

8          Copies of interim results

Copies of the interim results can be obtained from the website www.premiergoldresources.com. From this site you may access our financial reports and presentations, recent press releases and details about the company and its operations.

 

END

 

 

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