Interim Results

RNS Number : 4820K

Shefa Gems Ltd

29 August 2019

 

B"H

29 August 2019

Shefa Gems Ltd.

("Shefa Gems" or the "Company")

Interim Results

Shefa Gems (LSE: SEFA), a company focused on advanced exploration and development of multi-gemstone projects in Northern Israel, announces its results for the six months ended 30 June 2019.

H1 2019 Highlights

Kishon Mid-Reach

·    Completed independent Technical Economic Evaluation ("TEE") that places the first mine at Kishon Mid-Reach Zone 1 project at the lower end of the cost curve

·    Completed bulk sampling in Kishon Mid-Reach Zone 2 on time and within the expected budget

·    Received independent valuation of our "Gem Box" suite of precious stones, which includes valuations of US$10,000 and US$7,000 per carat for Natural Moissanite^TM and Blue Carmel Sapphire^TM respectively

·    Received official recognition on a new mineral in nature named Carmeltazite, discovered by Shefa Gems, and found in its gemstone, the Carmel Sapphire™

·    Discovery of the first naturally occurring Vanadium metal hydride

·    World-renowned jewellery designer, Yossi Harari, completed exclusive 31-piece jewellery set titled "Heaven on Earth", the first ever collection using Shefa Gems gemstones

Corporate and Financial

·    Appointed Mr. Michael Rosenberg, OBE as Chairman of the Board, separating the roles of Chairman and Chief Executive Officer

·    Raised £1.0 million equity from new shareholders to fund its development activities.

·    Conducted a 10 for one share split of Shefa Gems shares traded on the Standard List of the London Stock Exchange to improve liquidity in the shares

·    Changed the company name to Shefa Gems Ltd, to align well with the Company's global "Mine to Market" strategy

Post Period Highlights

·    Renewed exploration permit 869B8 covering the Kishon River and Kishon Mid Reach Zones 2 and 3 for a further year in July 2019. The renewed exploration permit, 869B11, includes four volcanic bodies on Mount Carmel; RMC (Rakefet Magmatic Complex), Muhraka, Har Alon and Beit Oren, the eastern slope of Mt. Carmel, Zevulun and west Yizre'el valleys

·    In August 2019, Prospecting Licence (869C9), over the Kishon Mid-Reach Zone 1 Project, has been exclusively renewed for a further 12 months enabling a certificate of discovery to be applied for which in turn will lead to a formal grant of a mining licence

·    In August 2019, the UK Intellectual Property Office granted a trademark for the Company's new name, Shefa Gems Ltd^®

Avi Taub, CEO of Shefa Gems, said: "The first half of the year been very successful for Shefa Gems as we have accomplished many of our goals. These include completing the TEE report, receiving official recognition on a new mineral in nature named Carmeltazite, discovered by Shefa Gems, and found in its gemstone, the Carmel Sapphire™, discovery of the first naturally occurring Vanadium metal hydride, receiving an independent valuation of our precious stones, and concluding the bulk sampling in Kishon Mid-Reach Zone 2. These achievements have put us in a strong position to advance with our target milestones for the rest of the year and beyond. In particular, we are focused on securing a mining license for Kishon Mid-Reach Zone 1 which will enable us to commence trial mining during 2020 and consequently begin producing revenue. Alongside our exploration activities we plan to develop our 'Mine to Market' strategy which entails creating unique pieces of jewellery with Shefa Gems' precious and rare gemstones which will be marketed worldwide. We are busy developing additional marketing channels which underscores the unique assemblage of precious stones in the land of Israel."

- Ends -

Enquiries

Shefa Gems Ltd
Michael Rosenberg, OBE - Chairman  www.shefagems.com	[phone]
VSA Capital Limited - Financial Adviser
Andrew Raca	[phone]
SI Capital Limited - Broker and Strategic Adviser
Nick Emerson and Jon Levinson	[phone] / [phone]
Luther Pendragon
Harry Chathli, Alexis Gore, Rachel So	[phone]

Notes to Editors

About Shefa Gems Ltd

Shefa Gems Ltd (LSE: SEFA) is a multi-commodity explorer of precious stones operating in Northern Israel. Exploration activity is managed by professionally skilled and technically competent personnel and is accompanied by an international team of geological experts with decades of proven experience in their fields.

All exploration activities are conducted under international standards and the internationally recognised SAMREC 2016 Code. Furthermore, its four (4) permits, granted to it by the Commissioner of Mines at the Ministry of Energy, Natural Resources Administration, Israel, extend over an area of approximately 600,000 Dunam (60,000 hectares) that includes the Kishon River, the volcanic bodies on Mount Carmel, the Zevulun and Yizre'el valleys and their margins - Menashe Hills, Tivon-Alonim Hills, and Nazareth range. The Company upholds environmental values and protects the nature in the areas where it operates, cooperating fully with all authorities.  

Alongside its exploration activities, the Company is building on the launch of the "Heaven on Earth" jewellery collection and developing the Company's "Mine to Market" strategy to promote unique jewellery collections utilising Shefa Gems' suite of precious gemstones.

The exclusive "Heaven on Earth" collection is now available to view online on the website of the designer Yossi Harari at: www.yossiharari.com/collections/heaven-on-earth

For further information please visit the website at www.shefagems.com 

 

Overview

It has been a very encouraging first half of 2019 as the Company has achieved several key milestones. With the TEE report completed, alongside an independent valuation of our Gem Box suite, we have a clear picture of the economics to bring the Kishon Mid-Reach Zone 1 project to trial mining during 2020. In addition, the Company has made excellent progress with its 'Mine-to-Market' strategy with the launch of the 'Heaven on Earth' jewellery collection.

Operational Review

Technical Economic Evaluation Report

In February 2019, an independent Technical Economic Evaluation report for the first mine of the Kishon Mid-Reach project in Zone 1 was completed by Paradigm Project Management ("PPM"). The report places the first mine in Kishon Mid-Reach Zone 1 at the lower end of the cost curve and provides a base case for the work and capital costs of bringing the Kishon Mid-Reach project into production. It gives Shefa Gems a base case for the development of the Kishon Mid-Reach Zone 1 project.

A summary of the key points are as follows:

·      Mine can potentially process 1.5 Mt of gravel over an 11-year Life of Mine ('LoM'), the overburden removed would be 1.8 Mt;

·      The capital expenditure for the development of the mine using new equipment has been estimated at US$11.30 million or US$7.5 million through contract mining;

·      Operating cost budget over LoM estimated at US$26/t processed or US$27/t processed through contract mining; and,

·      Can halve unit operation cost to US$10-15/t with small investment in machinery to double processing capacity from 50tph to 100tph.

Independent Valuation of Gemstones

Shefa Gems received an independent expert opinion and valuation of its suite of precious stones. The report was compiled by Dr Gavrielov Gila an expert gemmologist. Dr Gavrielov has over 40 years of expertise and experience in the appraisal and purchase of precious stones for use in jewellery. Highlights of her career include joint ventures with Rapaport and the British Gemmological Institute (BGI) evaluating gemstones, diamonds and jewellery.

The main purpose of the gemmological valuation was to provide a professional opinion regarding the value of the suite of precious stones found in exploration activity carried out by the Company in the Kishon Mid Reach alluvial deposit in the north of Israel.  Dr. Gavrielov's gemological report included valuations of US$10,000 and US$7,000 per carat for Natural Moissanite^TM (rough till 4mm) and Blue Carmel Sapphire^TM respectively. The Natural Moissanite™ found by the Company, is the largest in both volume and size ever found globally (single crystals to >4mm). The Carmel Sapphire™ is not found anywhere else in the world and is formed of the rare mineral Carmeltazite, a newly discovered mineral internationally recognised by the International Mineralogical Association Commission on New Minerals, Nomenclature, and Classification.

The rarity, location and limited supply all adds significant value to the Gem Box suite of gemstones.

Zone 1 - Progressing to Trial Mining

Shefa Gems continues to advance towards trial mining during 2020 as it makes good progress towards the completion of a mine planning, engineering and environmental report for mining license submission to the Ministry of Energy Natural Resources Administration Israel for Kishon Mid-Reach Zone 1. The Company is targeting to receive the necessary permissions for commencement of trial mining during 2020 although exact timing of commencement is dependent on the speed of processing of the submissions by the relevant authorities. 

Zone 2 - Bulk Sampling Completed

Shefa Gems made excellent progress with the completed excavation of four new bulk samples and one mini bulk sample (weight 37 tonnes) from target gravel horizons in the Kishon Mid-Reach Zone 2. To date, a total of 30 bulk and mini bulk samples have been collected from the Kishon Mid Reach Zone 2 and 6,094 tonnes of gravel. The extraction of these additional bulk samples, BS-1252, BS-1253, BS-1254, BS-1255 and BS-1256, is expected to conclude the exploration activity in Zone 2. The operations were conducted on time and within the expected budget.

The collected samples, with a total weight of 2,255 tonnes, are now undergoing treatment and analysis in the Company's operational site in Akko. Upon completion of the analysis at Akko, the Company will apply for a prospecting license, bringing Zone 2 to the same development level as Zone 1 and thereby enlarging its deposit base.

Preparing for exploration in Zone 3

Following the excellent progress and encouraging results from exploration campaigns in Zone 1 and Zone 2, Shefa Gems is focused on expanding its efforts in Zone 3. Shefa Gems will be preparing further resource delineation drilling campaigns in the Kishon Mid-Reach Zone 3 through the remainder of 2019. 

'Heaven on Earth' Jewellery Collection

In February 2019, the 'Heaven on Earth' jewellery collection, produced in collaboration with world-renowned jewellery designer Yossi Harari, was completed.  Mr Harari created a uniquely designed and branded jewellery line mounted with Shefa Gems' precious gemstones from the Kishon Mid-Reach area.

The collection comprises of 31 unique, handcrafted, individual pieces of jewellery and includes 11 necklaces, 10 rings, 4 pendants, 4 pairs of earrings and 2 bracelets. Harari originally planned to create 18 pieces but produced an additional 13 pieces as a result of the variety, sizes and quality of Shefa Gems' gemstones and their capability to be adapted in such a wide range of jewellery. The prices for each piece of jewellery in this collection range from $1,000 to $85,000.

The collaboration with Yossi Harari is a significant step and forms part of Shefa Gems 'Mine to Market' development strategy, which includes exploration, mining, as well as designing and selling jewellery pieces containing its gemstones.  

Following the launch of the collection, Shefa Gems has received a great amount of interest from jewellery manufacturers, retailers and sales and distribution channels. While still at a very early stage, it is encouraging to see the level of interest in Shefa Gems' precious stones and adds further evidence of the value of the project.

Discovery of Carmeltazite

Shefa Gems received official international recognition on a new mineral in nature named Carmeltazite, discovered by Shefa Gems and found in its gemstone, the Carmel Sapphire™.  Carmeltazite was recognised and approved as a new mineral by the International Mineralogical Association ("IMA") Commission on New Minerals, Nomenclature and Classification, as stated in the published article entitled 'Carmeltazite, ZrAl2Ti4O11, a New Mineral Trapped in Corundum from Volcanic Rocks of Mt Carmel, Northern Israel'. The Company has already received a trademark from the Israeli Government to market the stones under the name "Carmel Sapphire". Carmeltazite was given its name due to its location of discovery on Mt Carmel ("CARMEL"), and due to its major chemical components, namely, Titanium, Aluminum and Zirconium ("TAZ").

Discovery of the first naturally occurring Vanadium metal hydride

These findings are of major importance in understanding the evolution of the magmatic activity beneath Mt Carmel, which eventually led to the formation of the gem mineral association now being commercially developed by Shefa Gems. This knowledge is another step in understanding the gem-forming processes, to the benefit of future exploration.

Renewal of exploration permits and licences

During the period and post period, exploration and prospecting permits were renewed by the Ministry of Energy, Natural Resources Administration, Israel for a period of 12 months.  In January, two of the Company's prospecting permits were renewed, covering a total of 440,455 Dunams (44,045 hectares). In July 2019, Exploration Permit 869B11 was renewed. 869B11 covers a total of 173,636 Dunams (17,363 hectares). The Company's first Prospecting Licence, over its alluvial exploration target, the Kishon Mid-Reach Zone 1 Project, was renewed in August 2019.

Corporate Review

To better align with the Company's 'Mine to Market' strategy, on 14 June 2019, the Company changed its name to Shefa Gems Ltd, and in July 2019, the UK Intellectual Property Office granted a trademark for the name, Shefa Gems Ltd^®. The change of name enables the Company to build a global brand by leveraging the positive brand-value associated with the rare gemstones amongst the suite of precious stones found in the Kishon Mid-Reach area. 

In addition, the Company has been seeking to address the lack of liquidity in the shares of Shefa Gems and following recommendations from its advisors, the Board of Directors resolved to a subdivision ("share split") of Shefa Gems shares traded on the Standard List of the London Stock Exchange. The Company conducted a 10 for one share split.

Board changes

In accordance with its commitment to high corporate governance standards, the Company separated the roles of the Chairman and Chief Executive Officer, previously both held by Mr Avi Taub. Mr Michael Rosenberg, OBE who is based in London, was previously an External Director and Independent Non-Executive Director of Shefa Gems, was appointed as Chairman of the Company effective from 1 May 2019. Mr Taub continues in his role as Chief Executive Officer and remains on the Board.

Financial Review

The Heaven on Earth Jewellery collection was launched to both illustrate the unique Gem Box suite which has been discovered and to provide a useful test market for the values that can be obtained in due course. The Company is therefore pleased to note that some sales were made in the first half of the year amounting to TNIS182.

Over the last six months the Company recorded a comprehensive loss for the period, of TNIS (in thousands) 2,573 (2018: TNIS 959) equating to a loss per share of NIS 0.017 (2018: 0.0069). The loss was attributed to general and administrative expenses, and financing expenses due to adjustment of the value of a financial liability at fair value. As of June 30, 2019, the Company's cash and cash equivalents stood at TNIS 2,448 (2018: TNIS 1,737).

Jewellery Market Testing

Under the agreement between the Company and Mr. Yossi Harari, regarding the Company's first jewellery collection - 'Heaven on Earth' and after reimbursing the Company's expenses incurred in direct connection with the Jewellery Collection, the profits resulting from the sale of the jewellery will be divided equally between the Company and Mr. Yossi Harari.

General and administrative expenses

The decrease is mainly due to a decrease in marketing and advertising expenses and expenses of professional advisers.

Financial expenses

Financing expenses increased mainly due to share allocations in the first half of the year and registration of financing expenses due to revaluation of the options for the shares allotted.

Loan Conversions

On May 13, 2019 the Company issued 25,000,000 Ordinary Shares and Options to various investors in consideration for GBP £ 1 million. The shares were allocated at the rate of 4 pence per share, and each share was allotted one Option at an exercise price of 8 pence for a 24-month period.

On June 30, 2019 the Company issued 5,061,055 shares and Options to various investors following conversion of loans in the amount of GBP £253,053. The shares were converted at a price of 5 pence per share, and each share was allotted one Option at an exercise price of 10 pence for a 24-month period.

The Company received from investors loans convertible to shares in the amount of GBP £329,364 between November 2018 and May 2019.

Arrangement with the Company's largest shareholder (hereinafter: 'Shefa Tel Aviv')

Shefa Tel Aviv, which is listed on the Tel Aviv Stock Exchange, is the largest shareholder of Shefa Gems holding approximately 39.44 per cent. of the Company's share capital.  Shefa Tel Aviv applied a petition to the Tel Aviv court for a scheme of arrangement between it and its shareholders and its creditors, as follows:

·    Shefa Tel Aviv holds 68,004,420 shares in the Company, representing 39.44% of the Company's share capital.

·    The effect of the proposals once implemented will be that the shares now owned by Shefa Tel Aviv will be distributed to and owned directly by the present shareholders of Shefa Tel Aviv. However initially and for a period of approximately one year they will be held by a trustee on behalf of those shareholders.

·    It is hoped that the restructuring will be approved and implemented within the next three months.

Placing and Subscription for £1 million

During the period, Shefa appointed SI Capital as sole broker and strategic advisor to the Company whilst VSA Capital continues to be the financial advisor to the Company. 

Shefa Gems raised GBP1.0 million (before expenses) from new shareholders through a subscription and placing of 25,000,000 new ordinary shares of 0.10 NIS each in the Company ("Subscription and Placing Shares") at an issue price of 4 pence per share (the "Placing") in May. The new Shareholders include a mixture of specialist institutional investors and sophisticated High Net Worth investors who are attracted to the potential risk/returns from advanced to development stages of the natural resource and mining projects.

Outlook

Looking ahead, the Company is focused on securing a mining license for Kishon Mid-Reach Zone 1, which will enable Shefa Gems to commence trial mining during 2020. Alongside our exploration activities we plan to develop our 'Mine to Market' strategy which entails creating unique pieces of jewellery with Shefa Gems' precious and rare gemstones which will be marketed worldwide.

Target H2 2019 Milestones:

·      Progress with planning and regulatory procedures to obtain a mining license to advance the Kishon Mid-Reach Zone 1 with a view to begin trial mining during 2020 subject to regulatory approval and funding.  

·      The treatment and analysis of the completed bulk sampling in Zone 2 is continuing as planned and is expected to be completed within 12 months.

·    Plans are currently being finalised to progress preparation for drilling campaigns in Zone 3 of the Kishon Mid-Reach area through the remainder of 2019. 

·      Build on the launch of the 'Heaven on Earth' collection, created by world-renowned jewellery designer Yossi Harari, and develop the Company's "Mine to Market" strategy. A multi-market approach is being considered but due to the rareness and exclusivity of the precious stones, great care is being taken in this design. The Company is also developing additional marketing channels which underscores the unique assemblage of precious stones in the land of Israel.

 

SHEFA GEMS LTD. [Formerly Shefa Yamim (A.T.M.) LTD.]

CONDENSED INTERIM STATEMENTS OF FINANCIAL POSITION

In NIS in thousands								June 30,								December 31,
								2019			2018					2018
								(Unaudited)								(Audited)
ASSETS
Non-Current Assets:
Fixed assets								3,594			1,917					1,736
Loans to Shefa Yamim Ltd								2,371			2,466					2,494
Interested party								77			77					77
Assets for exploration and evaluation of precious stones								60,970			57,135					59,128
Total non-current assets								67,012			61,595					63,435
Current Assets:
Cash and cash equivalents								2,448			1,737					209
Deposit in bank								15			- . -					- . -
Trade receivables								182			- . -					- . -
Interested parties								- . -			70					- . -
Other accounts receivable								711			387					779
Total current assets								3,356			2,194					988
Total Assets								70,368			63,789					64,423
EQUITY AND LIABILITIES
Equity attributed to Company shareholders								61,784			51,717					59,544
Non-current Liabilities:
Long-term loans from interested party and others								- . -			687					560
Lease liability								1,774			- . -					- . -
Liability for severance pay								155			122					138
Warrants								1,389			9,037					564
Total Non-current Liabilities								3,318			9,846					1,262
Current Liabilities:
Short-term credit from bank and others								783			396					456
Trade payables								994			1,145					1,368
Interested parties								479			- . -					114
Other accounts payable								1,021			685					907
Liability at fair value								798			- . -					- . -
Loans convertible to shares								1,191			- . -					772
Total current liabilities								5,266			2,226					3,617
Total Equity and Liabilities								70,368			63,789					64,423
The accompanying notes to these condensed interim financial statements are an integral part thereof.
August    28  , 2019
Date of Approval of the Financial Statements		Avraham (Avi) Taub, CEO			David Ben David, CFO								Michael Rosenberg, Chairman of the Board of Directors

SHEFA GEMS LTD.  [Formerly Shefa Yamim (A.T.M.) LTD.]

CONDENSED INTERIM STATEMENTS OF COMPREHENSIVE PROFIT (LOSS)

In NIS in thousands (except for per share profits (losses)

	For the period of Six Months Ended					For the Year Ended
	June 30					December 31
	2019		2018			2018
	(Unaudited)					(Audited)
Revenues from sales	182			- . -		- . -
Cost of sales	(159)			- . -		- . -
Gross Profit	23			- . -		- . -
General and administrative expenses	(1,546)			(1,845)		(3,410)
Operating loss	(1,523)			(1,845)		(3,410)
Financial income	540			953		9,637
Financial expenses	(1,590)			(67)		(218)
Financial income (expenses), net	(1,050)			886		9,419
Comprehensive profit (loss) for the period, attributed to the Company shareholders	(2,573)			(959)		6,009
Basic and diluted profit (loss) per share (in NIS), attributed to the Company shareholders	(0.017)			* (0.0069)		* 0.0431

*Restatement

The accompanying notes to these condensed interim financial statements are an integral part thereof.

SHEFA GEMS LTD. [Formerly Shefa Yamim (A.T.M.) LTD.]

CONDENSED INTERIM STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY

In NIS in thousands

	Share Capital		Additional Paid-in Capital		Receivables on Account of Shares		Capital Reserve for Share - based Payments		Capital Reserve from Transactions with Interested Parties		Accumulated Deficit		Total Shareholders' Equity Attributed to Company Shareholders
Unaudited
Balance as of January 1, 2019	14,224		94,337		- . -		5,716		6,312		(61,045)		59,544
Comprehensive Loss for the period	- . -		- . -		- . -		- . -		- . -		(2,573)		(2,573)
Issuance of shares	3,006		2,067		(295)		- . -		- . -		- . -		4,778
Share - based payment	- . -		- . -		- . -		35		- . -		- . -		35
Balance as of June 30, 2019	17,230		96,404		(295)		5,751		6,312		(63,618)		61,784
Balance as of January 1, 2018	13,905		93,742		- . -		5,583		6,312		(67,054)		52,488
Comprehensive Loss for the period	- . -		- . -		- . -		- . -		- . -		(959)		(959)
Issuance of shares	19		81		- . -		- . -		- . -		- . -		100
Share- based payment	- . -		- . -		- . -		88		- . -		- . -		88
Receipts for issue of shares during 2012	- . -		- . -		- . -		- . -		- . -		- . -		- . -
Balance as of June 30, 2018	13,924		93,823		- . -		5,671		6,312		(68,013)		51,717

Audited                                                         

Balance as of January 1, 2018	13,905		93,742		- . -		5,583		6,312		(67,054)		52,488
Comprehensive income for the Year	- . -		- . -		- . -		- . -		- . -		6,009		6,009
Issuance of shares	319		595		- . -		- . -		- . -		- . -		914
Share- based payment	- . -		- . -		- . -		133		- . -		- . -		133
Balance as of December 31, 2018	14,224		94,337		- . -		5,716		6,312		(61,045)		59,544

The accompanying notes to these condensed interim financial statements are an integral part thereof.

SHEFA GEMS LTD. [Formerly Shefa Yamim (A.T.M.) LTD.]

CONDENSED INTERIM STATEMENTS OF CASH FLOWS

In NIS in thousands

		For the period of Six Months Ended June 30,						For the Year Ended December 31,
		2019				2018		2018
	(Unaudited)							(Audited)
Cash Flows for Operating Activities:
Income (Loss) for the period		(2,573)			(959)			6,009
Adjustments Required to Show Cash Flows for Operating Activities (Appendix A):		768			(2,078)			(9,931)
Net Cash Used in Operating Activities		(1,805)			(3,037)			(3,922)
Cash Flows for Investing Activities:
Deposits, net		(15)			172			173
Acquisition of fixed assets		(242)			(206)			(391)
Proceeds from sale of fixed assets		- . -			- . -			55
Investment in exploration and evaluation of precious stones assets		(1,198)			(1,316)			(3,541)
Loan rendered to Shefa Yamim Ltd		253			(55)			(84)
Net Cash Used in Investing Activities		(1,202)			(1,405)			(3,788)
Cash Flows from Financing Activities:
Proceeds from share and option issue (includes premium), net		3,544			- . -			908
Credits received (repaid) from banks and others, net		34			(42)			(2)
Repayment of loans from interested parties, net		- . -			(251)			(111)
Payables to shareholders		- . -			- . -			685
Repayment of long-term loans		- . -			(80)			(25)
Receipts on account of loans convertible to shares		1,932			- . -			- . -
Interest paid		(212)			(24)			(106)
Net Cash Provided by (Used in) Financing Activities		5,298			(397)			1,349
Exchange rate differences in regard to cash and cash equivalents		(52)			87			81
Increase (Decrease) in Cash and Cash Equivalents		2,239			(4,752)			(6,280)
Cash and cash equivalents at the beginning of the period		209			6,489			6,489
Cash and cash equivalents at the end of the period		2,448			1,737			209

The accompanying notes to these condensed interim financial statements are an integral part thereof.

 

SHEFA GEMS LTD. [Formerly Shefa Yamim (A.T.M.) LTD.]

CONDENSED INTERIM STATEMENTS OF CASH FLOWS

In NIS in thousands

Appendix A		For the period of Six Months Ended June 30,				For the Year Ended December 31,
		2019		2018		2018
		(Unaudited)				(Audited)
Adjustments Required to Show Cash Flows for Operating Activities:
Expenses (income) not involving cash flows:
Depreciation *		27		54		54
Share-based payment		9		14		25
Commissions for mobilization of cash		159		- . -		- . -
Financing expenses (income), net		1,050		(886)		(9,419)
Change in Assets and Liabilities:
Decrease (Increase) in receivables		(107)		20		(169)
Increase (Decrease) in trade payables		(469)		(759)		(121)
Decrease in other accounts payable		99		(521)		(301)
		768		(2,078)		(9,931)

* Net of depreciation encumbered on the exploration and evaluation assets for precious stones.

Appendix B		For the period of Six Months Ended June 30,				For the Year Ended December 31,
		2019		2018		2018
	(Unaudited)					(Audited)
Significant Operations Not Involving Cash Flows:
Payables in regard to exploration and evaluation assets for precious stones		457		238		428
Loan for acquisition of fixed assets		63		- . -		124
Loans assigned to capital		1,316		- . -		- . -
Balance from a supplier assigned to capital		60		100		223

The accompanying notes to these condensed interim financial statements are an integral part thereof.

 

END

 

 

IR PPMMTMBITTPL