Interim Results: 1 May 2019 - 31 October 2019

Vast Resources plc / Ticker: VAST / Index: AIM / Sector: Mining

17 01 2020

Vast Resources plc
(“Vast” or the “Company”)

Interim Results: 1 May 2019 - 31 October 2019

Vast Resources plc, the AIM-listed mining company, is pleased to announce that it has released its unaudited interim report and financial results for period of 1 May 2019 to 31 October 2019.

The report can be found on the Company’s website at the following address:

www.vastplc.com

**ENDS**

For further information, visit www.vastplc.com or please contact:

Vast Resources plc Andrew Prelea (Chief Executive Officer) Andrew Hall	www.vastplc.com [phone]
Beaumont Cornish - Financial & Nominated Adviser  Roland Cornish  James Biddle	www.beaumontcornish.com [phone]
SP Angel Corporate Finance LLP – Broker Richard Morrison Caroline Rowe	www.spangel.co.uk  [phone]
Blytheweigh Tim Blythe Megan Ray	www.blytheweigh.com  [phone]

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 (“MAR”).

ABOUT VAST RESOURCES PLC

Vast Resources plc, is an AIM listed mining company with mines in Romania and Zimbabwe focused on the rapid advancement of high quality brownfield projects by recommencing production at previously producing mines in Romania and commencement of the joint venture mining agreement on the Chiadzwa Community Concession Block of the Chiadzwa Diamond Fields in Zimbabwe.

The Company’s portfolio includes an 80% interest in the Baita Plai Polymetallic Mine in Romania, where work is now currently underway towards developing and recommissioning the mine and the Community Concession Block in Chiadzwa, Zimbabwe.

Vast Resources owns the Manaila Polymetallic Mine in Romania, which was commissioned in 2015, currently on care and maintenance. 

Overview of the Interim Results for the six months to 31 October 2019

The Company has arranged financing which it has prioritised for the Baita Plai Polymetallic Mine (“BPPM”)  in Romania and the Chiadzwa Community Concession in Zimbabwe. The Company is in the process of drawing down on the first tranche of the Atlas Capital Markets facility ($7.1 million gross)  and expects to receive funds shortly. The first tranche will be applied to placing BPPM into production and to the repayment of financial creditors. The Manaila Polymetallic Mine (“MPM”) continues on care and maintenance with the expectation of a second funding round at a later stage. Prior to the receipt of the first tranche of funding, the Company has diverted resources from MPM to upgrade, develop, and maintain BPPM in order to accelerate the project to production and in December 2019 conducted a cold commissioning as well as a drilling campaign. Finally, discussions continue regarding the conclusion of the Company’s diamond joint venture with its Zimbabwe stakeholders. These discussions are in line with previous expectations, save on timing.

Financial

• Interim period follows change of accounting reference date from 31 March to 30 April as announced on 8 April 2019. Six month comparatives for 31 October 2018 have been included.
• 19% decrease in administrative and overhead expenses for the six month period ended 31 October 2019 ($2.0 million) compared to the six month period ended 31 October 2018 ($2.4 million).
• Foreign exchange losses of $0.8 million for the period compared to $1.4 million for the six month period ended 31 October 2018. Included within the $0.8 million of foreign exchange losses is $0.6 million in respect of the Company’s operations in Zimbabwe.
• 36% decrease in losses after taxation from continuing operations in the period ($3.5 million) compared to the six month period ended 31 October  2018 ($5.5 million).
• $15 million (net $13.5 million before costs) binding conditional bond facility signed.
• Cash balances at the end of the period $1.216 million compared to $0.775 million as at 31 October 2018.

Operational Development

• Concluded a joint venture with Chiadzwa Mining Resources (Pvt) Ltd, a company designated to represent Chiadzwa Community interests in the Chiadzwa Community Diamond Concession (the “Concession”).
• Continued discussions to finalise the joint venture agreement with Zimbabwe Consolidated Diamond Company (Pvt) Ltd (“ZCDC”) which will enable the Concession to procure a special grant for the mining of diamonds. Discussions are in line with expectations, save on timing.
• Transitioned resources from MPM to BPPM in order to continue the upgrade and development of BPPM.

Post period end:

• Revised an existing agreement with Botswana Diamonds PLC (“BOD”) resulting in BOD acquiring a 2.5% interest in the cashflows generated from Vast’s share in the Concession. In consideration for this interest BOD will provide know-how for all aspects of exploration, mining, processing and marketing in relation to the Concession.
• Cold commissioning of BPPM and commencement of drilling programme to establish a JORC.

Funding

Share issues during the period: gross proceeds before cost of issue

		Gross issue proceeds
Date	No of shares issued	£	$
28 May	775,862,068	900,000	1,142,010	Placing - new investor
21 Jun	1,221	6	8	Exercise of Open Offer warrants
7 Aug	244	1	1	Exercise of Open Offer warrants
13 Aug	595,454,545	655,000	789,799	Placing - new investor
30 Sep	902,592,977	1,805,186	2,225,975	Placing - new investor
24 Oct	34,000,000	47,600	61,471	Exercise of warrants
	2,307,911,055	3,407,793	4,219,264

Post period end:

		Gross issue proceeds
Date	No of shares issued	£	$
7 Nov	20,000,000	50,000	64,110	Exercise of Share Appreciation Rights
23 Dec	18,318	92	119	Exercise of Open Offer warrants
31 Dec	260,629	1,303	1,721	Exercise of Open Offer warrants
2 Jan	1,275	6	8	Exercise of Open Offer warrants
	20,280,222	51,401	65,958

Debt Funding

• Documentation was signed for a US$15 million binding conditional bond issue deed for a facility up to US$ 15 million through an issuance of secured convertible bonds to a UK based fund, Atlas Capital Markets Ltd (“Atlas”).

Post period end

• Issued a drawdown notice for the funding of the first tranche of the Atlas facility. The Company expects to receive funds  shortly.

Board and Management

Post period end

• Appointment of Paul Fletcher as Finance Director on 11 November 2019; Roy Tucker continues as Business Director.

CHAIRMAN’S STATEMENT

We had two key objectives for this reporting period. The first was to secure financing for our Romanian and Zimbabwe operations, and the second was to finalise the joint venture agreements in order to start mining activities at the Chiadzwa Community Diamond Concession (the “Concession”).

The team made good progress in securing a US$15 million facility from Atlas (net US$13.5 million before costs), and post period end we were very pleased that we were in a position to drawn down on the first US$ 7.1 million tranche of the facility. We anticipate that we will receive these funds shortly. They will be applied to fund the capital expenditure programme that will put  BPPM into production, as well as repay creditors. This clearly marks a significant turning point for the Company and we look forward to reporting on progress in the months to come.

While good progress was also made in concluding a joint venture agreement with the Chiadzwa Community, to date we have been unable to finalize the joint venture agreement with ZCDC, which, amongst other matters, will enable the Company and our other Zimbabwean stakeholders to procure a special grant for the exploration, development, and mining of the Concession. As Andrew highlights in his report, we were concerned in the unexpected  delay in signing the ZCDC joint venture agreement but we are pleased that discussions with the various Zimbabwe stakeholders are in line with previous expectations, other than on timing, and we remain confident that we will commence our mining operations in the near future. The Company is well placed to move quickly to monetise this opportunity with US$ 7.9 million binding and conditional funding available in the form of  tranches 2 to 4 of the Atlas facility.

As I mentioned in my report at the year end, the Company has been through a testing period marked equally by great opportunities and challenges. The Company and the management team has met these challenges head-on and the effort and commitment has paid dividends in recent months. The Company is now on a firm footing to realising the underlying value of its key Romanian asset, BPPM, and is well positioned to successfully execute on its Zimbabwe diamond opportunity upon finalisation of the ZCDC joint venture agreement.

Brian Moritz

Chairman

CHIEF EXECUTIVE OFFICER’S REPORT

This has been a busy and critical period in the Company’s development. We were able to register some notable accomplishments in the half year and after the period end that provide the necessary operational and financial platform to allow the Company to begin to unlock the underlying value of its key assets, the Baita Plai Polymetallic Mine (“BPPM”) and the Chiadzwa Community Diamond Concession (the “Concession”).

On 26th September we concluded a joint venture with Chiadzwa Mining Resources (Pvt) Ltd, a company designated to represent Chiadzwa Community interests in the Concession. This resulted in the formation of Katanga Mining (Pvt) Ltd (“Katanga”), a majority owned Vast company that will invest in Chiadzwa Community Company (Pvt) Ltd (“CCC”), a company with specific objectives to carry out exploration, resource development and mining in the Chiadzwa Community Diamond Concession. A further joint venture agreement between Katanga and the Zimbabwe Consolidated Diamond Company (Pvt) Ltd (“ZCDC”), a government entity which represents the Republic of Zimbabwe in the diamond sector is due to be signed, and which will result in the procurement of a special grant from the Zimbabwe authorities allowing the exploration and mining of diamonds within the Concession and will establish the final interests of Vast, the Community, and ZCDC in CCC.  While we appreciate and share shareholders’ concern in the unexpected delay in signing this second agreement with ZCDC, discussions with the various Zimbabwe stakeholders are in line with previous expectations , save on timing, and we are confident that we will commence our mining operations in the near future. Full details of the Chiadzwa joint venture will be announced at the same time as the conclusion and announcement of the ZCDC joint venture to which it is linked.

On 24th October documentation was signed with Atlas Capital Markets Ltd (“Atlas”) for a US$15 million binding conditional convertible bond facility. The authorities necessary for the bond issue were  approved by shareholders on 8th November. The facility  is divided into four tranches, the first tranche of US$7.1 million being applied to bringing BPPM into production and the repayment of two existing creditors, Sub-Sahara Goldia Investments  (US$ 1 million in full and final settlement) and Mercuria (US$ 1 million in partial settlement). Mercuria will continue to support the Company’s Romanian operations under a tripartite intercreditor agreement with Atlas and the Company. We are in the process of drawing down the US7.1 million tranche from Atlas which we anticipate receiving shortly and which will be applied  immediately to BPPM, enabling the commencement of production in H1  2020. This represents a very significant and critical step for the Company, as was also the announcement at the end of last year of the cold commissioning of BPPM and the commencement of a drilling programme. The results of the drilling programme will be used to further define the grades and resource and will support the process of confirming a JORC resource.

On 28th November the Company revised an existing agreement with Botswana Diamonds PLC (“BOD”). Upon finalising the Katanga / ZCDC agreement, BOD will receive an interest of 2.5% in Vast Resources Enterprises Ltd (“VRE”) with Vast retaining an interest of 97.5%. In consideration for this interest BOD will provide know-how on all aspects of exploration, mining, processing and marketing in relation to the Concession.

We enter 2020 in a far stronger position than at any time in the Company’s history. We are resourced to place BPPM into production in the near future and we are well placed to execute our Zimbabwe diamond strategy as soon as the agreement with ZCDC is concluded, a process that we believe will be concluded shortly.

Andrew Prelea

Chief Executive Officer

For further information visit www.vastplc.com or please contact:

Vast Resources plc Andrew Prelea (Chief Executive Officer) Andrew Hall	www.vastplc.com [phone]
Beaumont Cornish – Financial & Nominated Adviser Roland Cornish James Biddle	www.beaumontcornish.com [phone]
SP Angel Corporate Finance LLP – Broker Richard Morrison Caroline Rowe	www.spangel.co.uk [phone]
Blytheweigh Tim Blythe Megan Ray	www.blytheweigh.com [phone]

Condensed consolidated statement of comprehensive income

for the six months ended 31 October 2019

		31 Oct 2019	30 Apr 2019	31 Oct 2018
		6 Months	13 Months	6 Months
		Group	Group	Group
		Unaudited	Audited	Unaudited
		$’000	$’000	$’000
Revenue		-	3,432	2,137
Cost of sales		-	(4,344)	(2,882)
Gross loss		-	(912)	(745)
Overhead expenses		(3,179)	(8,195)	(4,588)
Depreciation of property, plant and equipment		(411)	(1,206)	(819)
Profit / (loss) on sale of property, plant and equipment		-	84	(2)
Share option and warrant expense		(69)	(264)	(38)
Sundry income		33	311	136
Exchange loss		(773)	(2,798)	(1,448)
Other administrative and overhead expenses		(1,959)	(4,322)	(2,417)
Loss from operations		(3,179)	(9,107)	(5,333)
Finance income		-	1	-
Finance expense		(345)	(845)	(191)
Loss before taxation from continuing operations		(3,524)	(9,951)	(5,524)
Taxation charge		-	-	-
Total loss after taxation from continuing operations		(3,524)	(9,951)	(5,524)
Profit after taxation from discontinued operations		-	17,047	1,520
Total profit (loss) after taxation for the period		(3,524)	7,096	(4,004)
Other comprehensive income
Items that may be subsequently reclassified to either profit or loss
(Loss) / gain on available for sale financial assets		-	(3)	1
Exchange gain on translation of foreign operations		34	1,941	625
Total comprehensive profit / (loss) for the period		(3,490)	9,034	(3,378)
Total profit / (loss) attributable to:
- the equity holders of the parent company		(3,398)	243	(5,142)
- non-controlling interests		(126)	6,853	1,138
		(3,524)	7,096	(4,004)
Total comprehensive profit / (loss) attributable to:
- the equity holders of the parent company		(3,364)	2,181	(4,516)
- non-controlling interests		(126)	6,853	1,138
		(3,490)	9,034	(3,378)
Loss per share – basic and diluted		(0.04)	(0.00)	(0.10)
Loss per share continuing operations – basic and diluted		(0.04)	(0.16)	(0.10)

Condensed consolidated statement of changes in equity

for the six months ended 31 October 2019

	Share  capital	Share premium	Share option reserve	Foreign currency translation reserve	Available for sale reserve	EBT reserve	Retained deficit	Total	Non-controlling interests	Total
	$’000	$’000	$’000	$’000	$’000	$’000	$’000	$’000	$’000	$’000
At 30 April 2018	20,052	77,284	1,664	(2,656)	3	(3,942)	(95,934)	(3,529)	23,683	20,154
Total comprehensive loss for the period	-	-	-	625	1	-	(5,142)	(4,516)	1,138	(3,378)
Share option and warrant charges			38					38		38
Share options and warrants lapsed	-	-	(10)	-	-	-	10	-	-	-
Acquired through business combination:
- Delta Gold Zimbabwe (Pvt) Ltd	-	-	-	-	-	-	-	-	(1,694)	(1,694)
Derecognition of EBT reserve	-	-	-	-	-	3,942	(3,715)	227	-	227
Disposal of available for sale investments	-	-	-	-	(4)	-	-	(4)	-	(4)
Shares issued for cash:	592	2,792	-	-	-	-	-	3,384	-	3,384
- to settle liabilities								-	-	-
At 31 October 2018	20,644	80,076	1,692	(2,031)	-	-	(104,781)	(4,400)	23,127	18,727
Total comprehensive loss for the period	-	-	-	1,309	-	-	3,625	4,934	5,079	10,013
Share option and warrant charges	-	-	142	-	-	-	-	142	-	142
Share options and warrants lapsed	-	-	(219)	-	-	-	219	-	-	-
Derecognised on discontinued operations:
- Dallaglio Investments (Private) Limited	-	-	-	-	-		-	-	(28,247)	(28,247)
Shares issued for cash	3,058	1,609	-	-	-	-	-	4,667	-	4,667
At 30 April 2019	23,702	81,685	1,615	(722)	-	-	(100,937)	5,343	(41)	5,302
Total comprehensive loss for the period	-	-	-	34	-	-	(3,398)	(3,364)	(126)	(3,490)
Share option and warrant charges	-	-	69	-	-	-	-	69	-	69
Share options and warrants lapsed	-	-	(387)	-	-	-	387	-	-	-
Shares issued for cash	2,859	1,066	-	-	-	-	-	3,925	-	3,925
At 31 October 2019	26,561	82,751	1,297	(688)	-	-	(103,948)	5,973	(167)	5,806

Condensed consolidated statement of financial position

As at 31 October 2019

		31 Oct 2019	30 Apr 2019	31 Oct 2018
		Unaudited	Audited	Unaudited
		Group	Group	Group
		$’000	$’000	$’000
Assets	Note
Non-current assets
Property, plant and equipment	3	11,998	11,261	52,242
Investment in joint ventures		-	-	548
Goodwill arising on consolidation		-	-	566
		11,998	11,261	53,356
Current assets
Inventory	5	472	413	5,033
Receivables	6	1,961	2,537	8,431
Available for sale investments		-	-	15
Cash and cash equivalents		1,216	569	775
Total current assets		3,649	3,519	14,254
Total Assets		15,647	14,780	67,610
Equity and Liabilities
Capital and reserves attributable to equity holders of the Parent
Share capital		26,561	23,702	20,644
Share premium		82,751	81,685	80,076
Share option reserve		1,297	1,615	1,692
Foreign currency translation reserve		(688)	(722)	(2,031)
Retained deficit		(103,948)	(100,937)	(104,781)
		5,973	5,343	(4,400)
Non-controlling interests		(167)	(41)	23,127
Total equity		5,806	5,302	18,727
Non-current liabilities
Loans and borrowings	7	3,073	4,043	23,607
Provisions	9	489	489	2,465
Deferred tax liability		-	-	3,330
		3,562	4,532	29,402
Current liabilities
Loans and borrowings	7	2,348	1,476	11,956
Trade and other payables	8	3,931	3,470	7,525
Total current liabilities		6,279	4,946	19,481
Total liabilities		9,841	9,478	48,883
Total Equity and Liabilities		15,647	14,780	67,610

Condensed consolidated statement of cash flow

for the six months ended 31 October 2019

	31 Oct 2019	30 Apr 2019	31 Oct 2018
	Unaudited	Audited	Unaudited
	Group	Group	Group
	$’000	$’000	$’000
CASH FLOW FROM OPERATING ACTIVITIES
Profit (loss) before taxation for the period
- from continuing operations	(3,524)	(9,951)	(5,524)
- from discontinued operations	-	17,047	1,520
Adjustments for:
Depreciation and impairment charges	411	4,554	2,138
(Profit) loss on sale of property, plant and equipment	-	(76)	2
Gain on disposal of discontinued operations	-	(8,649)	-
Loss on disposal of available for sale investments	-	10	-
Share option expense	69	264	38
	(3,044)	3,199	(1,826)
Changes in working capital:
Decrease (increase) in receivables	613	2,140	(2,439)
Decrease (increase) in inventories	(55)	1,290	(1,000)
Increase (decrease)  in payables	490	(1,275)	2,639
	1,048	2,155	(800)
Taxation paid	-	-	-
Cash generated by / (used in) operations	(1,996)	5,354	(2,626)
Investing activities:
Payments to acquire property, plant and equipment	(1,184)	(11,391)	(4,443)
Payments to acquire new subsidiary	-	(4,480)	(4,480)
Proceeds on disposal of property, plant and equipment	-	168	85
Net cash inflow on disposal of discontinued operations	-	1,592	-
Proceeds of derecognition of EBT reserve	-	221	221
Decrease (increase) in investment in joint venture	-	559	(54)
		.
Total cash used in investing activities	(1,184)	(13,331)	(8,671)
Financing activities:
Net proceeds from the issue of ordinary shares	3,925	8,110	4,667
Proceeds from loans and borrowings granted	156	6,165	6,985
Repayment of loans and borrowings	(254)	(7,029)	(53)
Total proceeds from financing activities	3,827	7,246	11,599
Increase (decrease) in cash and cash equivalents	647	(731)	302
Cash and cash equivalents at beginning of period	569	1,300	473
Cash and cash equivalents at end of period	1,216	569	775

Interim report notes

1            Interim Report

These condensed interim financial statements, which are unaudited, are for the six months ended 31 October 2019 and consolidate the financial statements of the Company and all its subsidiaries. The statements are presented in United States Dollars.

The financial information set out in these condensed interim financial statements does not constitute statutory accounts as defined in Section 434(3) of the Companies Act 2006. The condensed interim financial statements should be read in conjunction with the consolidated financial statements of the Group for the period ended 30 April  2019 which have been prepared in accordance with International Financial Reporting Standards as adopted by the European Union (“IFRSs”). The Auditor's report on those financial statements was unqualified and did not contain a statement under s.498(2) or s.498(3) of the Companies Act 2006.

While the Auditors’ report for the period ended 30 April 2019 was unqualified, it did include a material uncertainty related to going concern, to which the Auditors drew attention by way of emphasis without qualifying their report. Full details of these comments are contained in the report of the Auditors on Pages 23-27 of the annual financial statements for the period ended 30 April 2019, released elsewhere on this website on 30 September 2019.

The accounts for the period have been prepared in accordance with International Accounting Standard 34 “Interim Financial Reporting” (“IAS 34”) and the accounting policies are consistent with those of the annual financial statements for the period ended 30 April 2019, unless otherwise stated, and those envisaged for the financial statements for the year ended 30 April 2020.

New IFRS accounting standards

IFRS 16 Leases  became effective for the Group from 1 January 2019. The principal impact of IFRS 16 will be to change the accounting treatment by lessees of leases currently classified as operating leases. Lease agreements will give rise to the recognition by the lessee of an asset, representing the right to use the leased item, and a related liability for future lease payments. Lease costs will be recognised in the income statement in the form of depreciation of the right of use asset over the lease term, and finance charges representing the unwind of the discount on the lease liability. The adoption of IFRS 16 does not materially impact the carrying value of lease liabilities given the Group’s negligible leasing exposure.  As the effects of applying these standards are considered immaterial to the Group, the Group has elected not to demonstrate the impact of these standards on the current period’s results and not to restate prior periods on adoption of the new standards in 2019.

Going concern

After review of the Group’s operations and of the funding opportunities open to the Group, the Directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. Accordingly, the Directors continue to adopt the going concern basis in preparing the unaudited condensed interim financial statements.

This interim report was approved by the Directors on 17 January 2019.

2  Segmental analysis	Continuing operations					Discontinued operations
	Mining, exploration and development		Admin and corporate	Total		Mining, exploration and development		Admin and corporate	Total
	Europe	Africa				Europe	Africa
	$’000	$’000	$’000	$’000		$’000	$’000	$’000	$’000
Six months to 31 October 2019
Revenue	-	-	-	-		-	-	-	-
Production costs	-	-	-	-		-	-	-	-
Gross profit (loss)	-	-	-	-		-	-	-	-
Depreciation	(409)	-	(2)	(411)		-	-	-	-
Profit (loss) on sale of property, plant and equipment	-	-	-	-		-	-	-	-
Share option and warrant expense	-	-	(69)	(69)		-	-	-	-
Sundry income	33	-	-	33		-	-	-	-
Exchange (loss) gain	(156)	-	(617)	(773)		-	-	-	-
Other administrative and overhead expenses	(722)	-	(1,237)	(1,959)		-	-	-	-
Finance income	-	-	-	-		-	-	-	-
Finance expense	(189)	-	(156)	(345)		-	-	-	-
Profit on disposal of discontinued operations	-	-	-	-		-	-	-	-
Taxation (charge)	-	-	-	-		-	-	-	-
Profit (loss) for the year from continuing operations	(1,443)	-	(2,081)	(3,524)		-	-	-	-
31 October 2019
Total assets	14,516	-	1,131	15,647		-	-	-	-
Total non-current assets	11,998	-	-	11,998		-	-	-	-
Additions to non-current assets	1,184	-	-	1,184		-	-	-	-
Total current assets	2,120	-	1,529	3,649		-	-	-	-
Total liabilities	8,329	-	1,512	9,841		-	-	-	-

2            Segmental analysis (continued)

	Continuing operations					Discontinued operations
	Mining, exploration and development		Admin and corporate	Total		Mining, exploration and development		Admin and corporate	Total
	Europe	Africa				Europe	Africa
	$’000	$’000	$’000	$’000		$’000	$’000	$’000	$’000
Thirteen months to 30 April 2019
Revenue	3,328	-	104	3,432		-	31,243	-	31,243
Production costs	(4,344)	-	-	(4,344)		-	(18,527)	-	(18,527)
Gross profit (loss)	(1,016)	-	104	(912)		-	12,716	-	12,716
Depreciation and impairment	(1,200)	-	(6)	(1,206)		-	(3,348)	-	(3,348)
Profit (loss) on sale of property, plant and equipment	86	-	(2)	84		-	(8)	-	(8)
Share option and warrant expense	-	-	(264)	(264)		-	-	-	-
Sundry income	311	-	-	311		-	670	-	670
Exchange (loss) gain	(2,283)	-	(515)	(2,798)		-	6,494	(779)	5,715
Other administrative and overhead expenses	(1,516)	-	(2,806)	(4,322)		-	(4,894)	(22)	(4,916)
Finance income	-	-	1	1		-	2	-	2
Finance expense	(413)	-	(432)	(845)		-	(1,014)	-	(1,014)
Loss on disposal of subsidiary company loans	-	-	-	-		-	8,649	-	8,649
Taxation (charge)	-	-	-	-		-	(1,408)	(11)	(1,419)
Profit (loss) for the year from continuing operations	(6,031)	-	(3,920)	(9,951)		-	17,859	(812)	17,047
30 April 2019
Total assets	13,611	-	1,169	14,780		-	-	-	-
Total non-current assets	11,220	-	41	11,261		-	-	-	-
Additions to non-current assets	1,684	-	53	1,737		-	14,371	-	14,371
Total current assets	2,441	-	1,078	3,519		-	-	-	-
Total liabilities	8,434	-	1,044	9,478		-	-	-	-

2            Segmental analysis (continued)

	Continuing operations					Discontinued operations
	Mining, exploration and development		Admin and corporate	Total		Mining, exploration and development		Admin and corporate	Total
	Europe	Africa				Europe	Africa
	$’000	$’000	$’000	$’000		$’000	$’000	$’000	$’000
Six months to 31 October 2018
Revenue	2,137	-	-	2,137		-	16,932	-	16,932
Production costs	(2,882)	-	-	(2,882)		-	(12,840)	-	(12,840)
Gross profit (loss)	(745)	-	-	(745)		-	4,092	-	4,092
Depreciation	(818)	-	(1)	(819)		-	(1,319)	-	(1,319)
Profit (loss) on sale of property, plant and equipment	-	-	(2)	(2)		-	-	-	-
Share option and warrant expense	-	-	(38)	(38)		-	-	-	-
Sundry income	136	-	-	136		-	215	-	215
Exchange (loss) gain	(1,047)	-	(401)	(1,448)		-	1	-	1
Other administrative and overhead expenses	(866)	-	(1,551)	(2,417)		-	(839)	(20)	(859)
Finance income	-	-	-	-		-	23	-	23
Finance expense	(191)	-	-	(191)		-	(685)	52	(633)
Loss on disposal of subsidiary company loans	-	-	-	-		-	-	-	-
Taxation (charge)	-	-	-	-		-	-	-	-
Profit (loss) for the year from continuing operations	(3,531)	-	(1,993)	(5,524)		-	1,488	32	1,520
31 October 2018
Total assets	14,105	-	20	14,125			53,485	-	53,485
Total non-current assets	10,768	-	-	10,768			42,588	-	42,588
Additions to non-current assets	421	-	1	422			4,021	-	4,021
Total current assets	2,849	-	388	3,237			10,749	268	11,017
Total liabilities	8,484	-	662	9,146			24,877	14,860	39,737

3            Property, Plant and equipment

Group	Plant and machinery	Fixtures, fittings and equipment	Computer assets	Motor vehicles	Buildings and Improvements	Mining assets	Capital Work in progress	Total
	$’000	$’000	$’000	$’000	$’000	$’000	$’000	$’000
Cost at 1 May 2018	19,297	178	307	722	3,749	27,693	2,760	54,706
Revaluation	-	-	-	-	-	-	-	-
Additions during the period	254	40	83	115	46	1,314	2,591	4,443
Acquired through business combination	2,319	20	-	2	1,790	-	-	4,131
Reclassification	260	-	-	-	5	-	(265)	-
Disposals during the period	-	-	-	-	(87)	-	-	(87)
Foreign exchange movements	(189)	(2)	(6)	(32)	(171)	(278)	(62)	(740)
Cost at 31 October 2018	21,941	236	384	807	5,332	28,729	5,024	62,453
Revaluation	-	10	1	40				51
Additions during the period	1,089	55	19	174	120	3,851	752	6,060
Acquired through business combination	493	1	102	-	-	-	-	596
Reclassification	(14)	-	-	-	129	-	(115)	-
Disposals during the period	(14)	-	-	-	5	-	-	(9)
Discontinued operations	(20,142)	(243)	(382)	(707)	(2,240)	(26,188)	(2,830)	(52,732)
Foreign exchange movements	(150)	(13)	(6)	(69)	(134)	(218)	(47)	(637)
Cost at 30 April 2019	3,203	46	118	245	3,212	6,174	2,784	15,782
Additions during the period	-	1	-	37	-	-	1,146	1,184
Foreign exchange movements	(6)	-	-	(5)	(10)	(16)	(10)	(47)
Cost at 31 October 2019	3,197	47	118	277	3,202	6,158	3,920	16,919
Depreciation at 1 May 2018	4,898	85	147	410	540	1,721	604	8,405
Charge for the period	1,548	16	42	28	76	428	-	2,138
Foreign exchange movements	(198)	(4)	(10)	(31)	(56)	(33)	-	(332)
Depreciation at 31 October 2018	6,248	97	179	407	560	2,116	604	10,211
Charge for the period	1,162	28	120	72	134	794	106	2,416
Acquired through business combination	52	-	9	-	-	-	-	61
Disposals during the period	(4)	-	-	-	-	-	-	(4)
Discontinued operations	(5,402)	(84)	(238)	(319)	(68)	(1,828)	-	(7,939)
Foreign exchange movements	(103)	(6)	(4)	(28)	(41)	(42)	-	(224)
Depreciation at 30 April 2019	1,953	35	66	132	585	1,040	710	4,521
Charge for the period	184	6	4	14	57	146	-	411
Foreign exchange movements	(2)	-	-	(2)	(4)	(3)	-	(11)
Depreciation at 31 October 2019	2,135	41	70	144	638	1,183	710	4,921
Net book value at 31  October 2018	15,693	139	205	400	4,772	26,613	4,420	52,242
Net book value at 30 April 2019	1,250	11	52	113	2,627	5,134	2,074	11,261
Net book value at 31 October 2019	1,062	6	48	133	2,564	4,975	3,210	11,998

4            Loss per share

	31 Oct 2019	30 Apr 2019	31 Oct 2018
	Unaudited	Audited	Unaudited
	Group	Group	Group
Profit and loss per ordinary share has been calculated using the weighted average number of ordinary shares in issue during the relevant financial year.
The weighted average number of ordinary shares in issue for the period is:	9,017,815,872	5,887,042,985	5,372,499,686
Profit / (loss) for the period: ($’000)	(3,398)	243	(5,142)
Profit / (loss) per share basic and diluted (cents)	(0.04)	0.00	(0.10)
Profit / (loss) for the period from continuing operations: ($’000)	(3,398)	(9,649)	(5,356)
Profit / (loss) per share for the period from continuing operations - basic and diluted	(0.04)	(0.16)	(0.10)
Profit / (loss) for the period from discontinued operations: ($’000)	-	9,892	214
Profit / (loss) per share for the period from discontinued operations - basic and diluted	-	0.17	0.00
The effect of all potentially dilutive share options is anti-dilutive.

5            Inventory

	31 Oct 2019	30 Apr 2019	31 Oct 2018
	Unaudited	Audited	Unaudited
	Group	Group	Group
	$’000	$’000	$’000
Minerals held for sale	61	61	1,145
Production stockpiles	48	48	1,711
Consumable stores	363	304	2,177
	472	413	5,033

6            Receivables

	31 Oct 2019	30 Apr 2019	31 Oct 2018
	Unaudited	Audited	Unaudited
	Group	Group	Group
	$’000	$’000	$’000
Trade receivables	-	-	412
Other receivables	839	1,502	2,414
Short term loans	211	174	-
Prepayments	60	74	2,506
VAT	851	787	3,099
	1,961	2,537	8,431

7            Loans and borrowings

	31 Oct 2019	30 Apr 2019	31 Oct 2018
	Unaudited	Audited	Unaudited
	Group	Group	Group
	$’000	$’000	$’000
Non current
Secured borrowings	5,035	4,043	9,120
Unsecured borrowings	206	-	14,838
less amounts payable in less than 12 months	(2,168)	-	(351)
	3,073	4,043	23,607
Current
Secured borrowings	2,018	978	3,802
Unsecured borrowings	330	498	4,269
Bank overdrafts	-	-	3,885
	2,348	1,476	11,956
Total loans and borrowings	5,421	5,519	35,563

8            Payables

	31 Oct 2019	30 Apr 2019	31 Oct 2018
	Unaudited	Audited	Unaudited
	Group	Group	Group
	$’000	$’000	$’000
Trade payables	1,298	1,193	4,460
Other payables	1,293	1,033	2,380
Other taxes and social security taxes	1,340	1,027	538
Accrued expenses	-	217	147
	3,931	3,470	7,525

9            Provisions

	31 Oct 2019	30 Apr 2019	31 Oct 2018
	Unaudited	Audited	Unaudited
	Group	Group	Group
	$’000	$’000	$’000
Provision for rehabilitation of mining properties
- Provision brought forward from previous periods	489	1,397	1,397
- Liability recognised during period	-	-	1,068
- Derecognised on disposal of subsidiary	-	(908)	-
	489	489	2,465

10          Events after the reporting date

Shares issued
			Gross issue proceeds
Date	No of shares issued		£		$		Reason for issue
7 Nov	20,000,000		50,000		64,110		Exercise of Share Appreciation Rights
23 Dec	18,318		92		119		Exercise of Open Offer warrants
31 Dec	260,629		1,303		1,721		Exercise of Open Offer warrants
2 Jan	1,275		6		8		Exercise of Open Offer warrants
	20,280,222		51,401		65,958

On 28th November the Company revised an existing agreement with Botswana Diamonds PLC (BOD), BOD will now be a consulting partner in the development of the Chiadzwa Community Concession in Zimbabwe, providing know-how on all aspects of exploration, mining, processing and marketing. Upon finalising the Katanga / ZCDC agreement, BOD will receive an interest of 2.5% in Vast Resources Enterprises Ltd (“VRE”).

On 16^th December the Company announced the cold commissioning of BPPM and on 23^rd December the commencement of a drilling programme, the results of which will be used to further define the grades and resource and will support the process of confirming a JORC resource.

On 2^nd January the Company has submitted a drawdown request for the First Tranche Issuance to Atlas Capital Markets Limited in accordance with the terms and conditions of the Bond Issuance Deed.

Attachment

• Interim Results