The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (“MARâ€). Upon publication of this announcement via a Regulatory Information Service (“RISâ€), this inside information is now considered to be in the public domain.
28 February 2017
Conroy Gold and Natural Resources plc
(“Conroy†or “the Companyâ€)
Half-yearly results for the six months ended 30 November 2016
Conroy (AIM: CGNR; ESM: CGNRI), the Irish-based resource company exploring and developing gold projects in Ireland and Finland, is pleased to announce its results for the six months ended 30 November 2016. During the period, drilling successes at Clontibret in County Monaghan Ireland included the discovery of five new gold zones, together with high grades and wide intersections of gold. The Company also moved forward with its plans for mining at Clontibret.
Highlights:
Commenting, Chairman, Professor Richard Conroy said:
“I am delighted with the continued progress and excellent drilling results at Clontibret, where we are focused on bringing in a gold mine. Elsewhere, ongoing work further enhanced the overall potential of our extensive licence area in Ireland.â€
For further information please contact:
Conroy Gold and Natural Resources plc | Tel: +353-1-661-8958 |
Professor Richard Conroy, Chairman | |
Allenby Capital Limited (Nomad) | Tel: +44-20-3328-5656 |
Virginia Bull/James Thomas/Nick Harriss | |
Hybridan LLP (Broker) | Tel: +44-20-3764-2341 |
Claire Louise Noyce/Niall Pearson/William Lynne | |
IBI Corporate Finance Limited (ESM Adviser) | Tel: +353-766-234-800 |
Ger Heffernan / Jan Fitzell | |
Lothbury Financial Services | Tel: +44-20-3290-0707 |
Michael Padley | |
Hall Communications | Tel: +353-1-660-9377 |
Don Hall |
Visit the website at: www.conroygold.com
CHAIRMAN’S STATEMENT
Dear Shareholder,
I have great pleasure in presenting your Company’s Half-Yearly Report for the six months ended 30 November 2016. During the half-year excellent progress was made at your Company’s flagship project, Clay Lake – Clontibret.
During the half-year, drilling at Clontibret resulted in the discovery of five new gold zones, high gold grades including 0.25m at 35.4g /t gold and wide intersections including 5.75m grading 5.04g/t, giving further encouragement to your Company’s belief in a combined multi-million oz. gold exploration target at Clay Lake – Clontibret.
The excellent results of the drilling programme were complemented by results from a structural study by independent consultant Dr. Francis Murphy. The structural survey identified eight gold lodes in stream bedrock at Clontibret. All of these corresponded to gold lodes previously identified by the drilling, thus giving further crucial technical information and confidence as your Company moves forward with its plans for mine development at Clay Lake – Clontibret, starting with a conventional open pit gold mine at Clontibret. A Scoping Study prepared by independent consultants Tetra Tech Wardrop demonstrated that the established resource, on only 20% of the target area at Clontibret, was technically and financially viable.
Drilling results at your Company’s Glenish target, which is at the junction of two major geological structures – the Orlock Bridge and Glenish Faults, gave further evidence of the overall gold prospectivity of your Company’s licence area. Channel sampling at Glenish had proved 1.3m Au grading 9.4g/t gold. The drilling results together with the channel sampling demonstrated the presence of four new gold zones in a 150 metre wide structural corridor in the western part of the Glenish gold target. The gold mineralisation in bedrock was traced down dip for over 70 metres and remains open in all directions.
Your Company has now delineated three major targets close together in the North-East of your Company’s licence area - Glenish, Clontibret, and Clay Lake. Clay Lake is to the North-East of the original gold discovery at Clontibret and Glenish is to the South-West. Each of the targets has a large (more than 100 hectares) gold-in-soil surface expression.
Additional claim reservations have been applied for in Finland which has excellent potential for gold but your Company’s prime focus is, of course, in Ireland at Clay Lake - Clontibret.
During the half-year Professor Garth Earls was appointed as a Non-Executive Director of the Company. Professor Earls, who has worked with the Company for a number of years as a consultant, has over 25 years mineral exploration and management experience. Professor Earls was a project geologist on the team which discovered the Curraghinalt gold deposit in the North of Ireland, now under development. He was Director of the Geological Survey of Northern Ireland (“GSNIâ€) from 2002-10 and after leaving the GSNI was Managing Director of Dalradian Gold and Chief Operating Officer of Premier Gold. I am delighted to welcome him as a member of the Board of your Company.
Financial
The loss after taxation for the half-year ended 30 November 2016 was €176,680 – (2015: loss €107,618) and the net assets as at 30 November 2016 were €16,976,644 (2015: €15,256,853).
As in previous years I have supported the working capital requirements of the Company and at the period end the amount due to me was €79,000. Since the period end I have advanced a further €55,000. These loans have currently been provided on an interest free and unsecured basis and are repayable at any time at the discretion of the Company. In addition, at the period end there was €135,287 of accrued interest outstanding on previous loans provided by me.
In the light of the excellent exploration results achieve to date, your directors are considering how best to fund your Company’s activities going forward. Options being studied include joint venture, farm-out and equity funding, as well as other arrangements as may be appropriate for advancing the interests of your Company.
Outlook
Your Company continues to make excellent progress with its exploration and mining development plans. I look forward to further enhancement of the potential of the overall licence area in Ireland and to development of a mine at Clontibret.
Directors and Staff
I would like to thank all of my fellow directors, staff and consultants for their dedication and hard work which has played a major role in the continued success of your Company.
Yours faithfully
Professor Richard Conroy
Chairman
28 February 2017
CONSOLIDATED INCOME STATEMENT
FOR HALF-YEAR ENDED 30 NOVEMBER 2016
Six months ended | Six months ended | Year ended | |
30 November | 30 November | 31 May | |
2016 | 2015 | 2016 | |
(Unaudited) | (Unaudited) | (Audited) | |
€ | € | € | |
OPERATING EXPENSES | (176,680) | (107,302) | (291,486) |
Finance income – bank interest receivable | - | - | - |
Finance costs – interest on shareholder loan | - | (416) | (679) |
LOSS BEFORE TAXATION | (176,680) | (107,618) | (292,165) |
Taxation | - | - | - |
LOSS FOR HALF-YEAR | (176,680) | (107,618) | (292,165) |
Loss per ordinary share – basic and diluted | (€0.0160) | (€0.0246) | (€0.0479) |
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR HALF-YEAR ENDED 30 NOVEMBER 2016
Six months ended | Six months ended | Year ended | |
30 November | 30 November | 31 May | |
2016 | 2015 | 2016 | |
(Unaudited) | (Unaudited) | (Audited) | |
€ | € | € | |
LOSS FOR PERIOD | (176,680) | (107,618) | (292,165) |
Total income and expense recognised in other comprehensive income | - | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD – ENTIRELY ATTRIBUTABLE TO EQUITYHOLDERS | (176,680) |
(107,618) |
(292,165) |
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 NOVEMBER 2016
30 November | 30 November | 31 May | |
2016 | 2015 | 2016 | |
(Unaudited) | (Unaudited) | (Audited) | |
ASSETS | € | € | € |
Non-current Assets | |||
Intangible assets | 19,349,507 | 18,029,895 | 18,696,602 |
Property, plant and equipment | 17,105 | 16,150 | 16,150 |
19,366,612 | 18,046,045 | 18,712,752 | |
Current Assets | |||
Trade and other receivables | 26,899 | 56,592 | 38,334 |
Cash and cash equivalents | 8,573 | 29,224 | 687,708 |
35,472 | 85,916 | 726,042 | |
Total Assets | 19,402,084 | 18,131,961 | 19,438,794 |
EQUITY AND LIABILITIES | |||
Capital and Reserves | |||
Called up share capital Called up deferred share capital |
11,014 10,504,431 |
4,373,208 6,135,597 |
11,014 10,504,431 |
Share premium | 10,649,252 | 8,855,525 | 10,649,252 |
Capital conversion reserve fund | 30,617 | 30,617 | 30,617 |
Share based payments reserve | 1,503,496 | 1,162,830 | 1,464,030 |
Retained losses | (5,722,166) | (5,300,924) | (5,545,486) |
Total Equity | 16,976,644 | 15,256,853 | 17,113,858 |
Non-current Liabilities | |||
Shareholder loan | 79,000 | 265,000 | - |
Financial Liabilities | 135,287 | 193,102 | 135,287 |
Total Non-current Liabilities | 214,287 | 458,102 | 135,287 |
Current Liabilities | |||
Trade and other payables | 2,211,153 | 2,417,006 | 2,189,649 |
Total Current Liabilities | 2,211,153 | 2,417,006 | 2,189,649 |
Total Liabilities | 2,425,440 | 2,875,108 | 2,324,936 |
Total Equity and Liabilities | 19,402,084 | 18,131,961 | 19,438,794 |
CONSOLIDATED CASH FLOW STATEMENT
FOR THE HALF-YEAR ENDED 30 NOVEMBER 2016
Six months ended | Six months ended | Year ended | |
30 November 2016 | 30 November 2015 | 31 May 2016 | |
(Unaudited) | (Unaudited) | (Audited) | |
€ | € | € | |
Cash flows from operating activities | |||
Cash (used in)/generated by operations | (84,266) | 88,884 | 41,014 |
Tax paid | - | - | - |
Net cash generated/(used in)by operating activities | (84,266) | 88,884 | 41,014 |
Cash flows from investing activities | |||
Investment in exploration and evaluation | (621,213) | (432,910) | (858,769) |
Payments to acquire property, plant and equipment | (2745) | - | - |
Net cash used in investing activities | (623,958) | (432,910) | (858,769) |
Cash flows from financing activities | |||
Issue of share capital | - | - | 1,800,367 |
Advances from shareholders | 79,000 | 267,080 | - |
Share issue costs | - | - | (60,015) |
Interest on shareholder loan | - | - | (679) |
Amount repaid to shareholders | - | - | (201,955) |
(Repaid to)/advances from related parties | (49,911) | 82,690 | (55,735) |
Net cash generated from financing activities | 29,089 | 349,770 | 1,481,983 |
Increase/(Decrease) in cash and cash equivalents | (679,135) | 5,744 | 664,228 |
Cash and cash equivalents at beginning of period | 687,708 | 23,480 | 23,480 |
Cash and cash equivalents at end of period | 8,573 | 29,224 | 687,708 |
STATEMENT OF CHANGES IN EQUITY
FOR THE HALF-YEAR ENDED 30 NOVEMBER 2016
Capital | |||||||
Conversion | Share-based | Retained | |||||
Share | Share | Reserve | Payment | Earnings | Total | ||
Capital | Premium | Fund | Reserve | (Deficit) | Equity | ||
€ | € | € | € | € | € | ||
At 1 June 2016 | 10,515,445 | 10,649,252 | 30,617 | 1,464,030 | (5,545,486) | 17,113,858 | |
Share-based payments | - | - | - | 39,466 | - | 39,466 | |
Loss for the period | - | - | - | - | (176,680) | (176,680) | |
At 30 November 2016 | 10,515,445 | 10,649,252 | 30,617 | 1,503,496 | (5,722,166) | 16,976,644 | |
Conversion | Share-based | Retained | ||||
Share | Share | Reserve | Payment | Earnings | Total | |
Capital | Premium | Fund | Reserve | (Deficit) | Equity | |
€ | € | € | € | € | € | |
At 1 June 2015 | 10,508,805 | 8,855,525 | 30,617 | 1,120,009 | (5,193,306) | 15,321,650 |
Share-based payments | - | - | - | 42,821 | - | 42,821 |
Loss for the period | - | - | - | - | (107,618) | (107,618) |
At 30 November 2015 | 10,508,805 | 8,855,525 | 30,617 | 1,162,830 | (5,300,924) | 15,256,853 |
Notes to the Financial Statements
1. Basis of preparation
The half-yearly financial statements have been prepared on the basis of the recognition and measurement requirements of International Financial Reporting Standards (IFRS) as adopted by the European Union (EU), and their interpretations adopted by the International Accounting Standards Board (IASB). The accounting policies used in the preparation of the half-yearly financial information are the same as those used in the Company’s audited financial statements for the year ended 31 May 2016. The half-yearly financial statements do not include all of the information required for full annual financial statements and should be read in conjunction with the audited financial statements of the Company for the year ended 31 May 2016, which are available on the Company’s website www.conroygold.com. The auditor’s report on those financial statements was unqualified and contained emphasis of matter paragraphs relating to the preparation of the accounts on the going concern basis and the recoverability of tangible assets.
2. Earnings per share
The calculation of the loss per ordinary share of €0.0160 (2015: €0.0246) is based on the loss for the financial year of €176,680 (2015: €107,618) and the weighted average number of ordinary shares in issue during the period of 11,013,537 (2015: 4,373,207).
Since the Company incurred a loss the effect of share options and warrants would be anti-dilutive.
3. Dividends
No dividends were paid or are proposed in respect of the period ended 30 November 2016.
4. Copies of Accounts
A copy of the Half-Yearly Report will be available on the Company’s website www.conroygold.com and will be available from the Company's registered office, 9 Merrion Square North, Dublin 2.