Final Results

RNS Number : 4895P

GCM Resources PLC

17 November 2016

 

17 November 2016

GCM Resources plc

("GCM" or the "Company")

(AIM:GCM) 

Final Results for the year ended 30 June 2016

GCM Resources plc (AIM:GCM), a resource exploration and development company, is pleased to report its preliminary results for the year ended 30 June 2016.

The Annual Report and Accounts for the year ended 30 June 2016 will be posted on the Company's website today (www.gcmplc.com) and will shortly be mailed to shareholders. Copies will also be available on request from the Company.

In the Chairman's Statement Datuk Michael Tang PJN, Executive Chairman, stated:

Although the mining sector has continued to face significant challenges over the last twelve months, we remain positive on the potential of the Phulbari Coal and Power Project (the Project) and are advancing the Company towards realising its objectives.

The Government of Bangladesh (the Government) continues to execute its strategy of substantially increasing the country's power supply, and has made progress during the year towards meeting its objective of generating over 19,000MW from coal by 2030. The expansion of coal fired power plants is expected to result in a significant increase in demand for high quality thermal coal within the country. GCM is well placed to meet this need.

Once developed, the Project can supply sufficient high quality thermal coal to support over 4,000MW of power generation for Bangladesh, making a substantial contribution towards the Government's goals. It is also expected to transform the Rangpur Division in north-west Bangladesh, from one of the poorest areas in the country into an economic centre with industries based on the new power supply, the mine and co-industries.  An estimated 17,000 jobs are expected to be created due to mine development and this figure increases to approximately 50,000 when taking into account the power generation and downstream industries enabled through using the Phulbari's coal and industrial mineral co-products. The Government would also benefit financially, deriving over US$7 billion revenue in the form of royalties, taxes and service charges from a producing Phulbari coal mine over its economic life and the Project would contribute an estimated 1% to GDP.

While pursuing approval from the Government of Bangladesh to proceed with development, we are negotiating with potential partners to expedite the Project. GCM has agreed a memorandum of understanding with China Gezhouba Group International Engineering Co. Ltd (CGGCINTL) to mutually investigate the feasibility of a joint venture with respect to the development of mine-mouth coal fired power plants generating up to 2,000MW in total at the Phulbari Coal and Power Project site. CGGCINTL has a wealth of experience in major infrastructure projects including developing coal-fired power plants and we are very pleased to partner with them in investigating this opportunity. 

Project implementation will mean substantial investment into the locality and we are committed to ensuring that the Project is developed for the benefit of all stakeholders. During the year the Company continued to engage with the local community, maintaining its relationships and listening to their views.

The Group incurred a loss of £1,043,000 for the year ended 30 June 2016 which included £340,000 of non-cash expenditure, compared to a loss of £937,000 in the previous financial year. Capitalised Project related expenditure amounted to £655,000 for the year, compared to £579,000 for the comparative year.

Finally, I would like to thank the Board and staff for all their hard work over the last twelve months and to the shareholders for their commitment and support.

The Income Statement, Statement of Comprehensive Income, Statement of Changes in Equity, Balance Sheet and Cash Flow are presented on the following pages.

 

Consolidated Statement of Comprehensive Income

For year ended 30 June

		2016	2015
		£000	£000
Operating expenses
Exploration and evaluation costs		(40)	(75)
Share based payments		(271)	(177)
Administrative expenses		(663)	(688)
Operating loss		(974)	(940)
Finance revenue		-	4
Finance costs		(69)	(1)
Loss before tax		(1,043)	(937)
Taxation		-	-
Loss and total comprehensive income for the year		(1,043)	(937)
Loss per share
Basic (pence per share)		(1.7p)	(1.5p)
Diluted (pence per share)		(1.7p)	(1.5p)

Consolidated Statement of Changes in Equity              

For year ended 30 June

	Share capital	Share premium account	Share based payments not settled	Convertible loan equity component	Accumulated losses	Total
	£000	£000	£000	£000	£000	£000
Balance at 1 July 2014	6,286	45,286	585	-	(13,820)	38,337
Total comprehensive loss	-	-	-	-	(937)	(937)
Shares issued during the year	-	-	-	40	-	40
Share based payments	-	-	13	-	177	190
Balance at 30 June 2015	6,286	45,286	598	40	(14,580)	37,630
Total comprehensive loss	-	-	-	-	(1,043)	(1,043)
Drawdown of convertible loan	-	-	-	129	-	129
Share based payments	-	-	11	-	271	282
Balance at 30 June 2016	6,286	45,286	609	169	(15,352)	36,998

Consolidated Balance Sheet

As at 30 June

		2016	2015
		£000	£000
Current assets
Cash and cash equivalents		194	169
Receivables		136	213
Total current assets		330	382
Non-current assets
Property, plant and equipment		29	32
Intangible assets		38,387	37,732
Receivables		-	60
Total non-current assets		38,416	37,824
Total assets		38,746	38,206
Current liabilities
Payables		(684)	(424)
Borrowings		(1,064)	-
Total current liabilities		(1,748)	(424)
Non-current liabilities
Borrowings		-	(152)
Total non-current liabilities		-	(152)
Total liabilities		(1,748)	(576)
Net assets		36,998	37,630
Equity
Share capital		6,286	6,286
Share premium account		45,286	45,286
Other reserves		778	638
Accumulated losses		(15,352)	(14,580)
Total equity		36,998	37,630

 

Consolidated Cash Flow Statement

For year ended 30 June

		2016	2015
		£000	£000
Cash flows from/(used in) operating activities
(Loss) before tax		(1,043)	(937)
Adjusted for:
Finance costs		69	1
Finance revenue		-	(4)
Share based payments		271	177
		(703)	(763)
Movements in working capital:
(Increase)/decrease in operating receivables		91	(68)
Increase/(decrease) in operating payables		223	15
Cash used in operations		(389)	(816)
Interest received		-	4
Net cash used in operating activities		(389)	(812)
Cash flows from/(used in) investing activities
Payments for property, plant and equipment		(2)	-
Payments for intangible assets		(603)	(551)
Net cash generated from/(used in) investing activities		(605)	(551)
Cash flows from/(used in) financing activities
Proceeds from convertible loan		1,019	200
Net cash from financing activities		1,019	200
Total increase in cash and cash equivalents		25	(1,163)
Cash and cash equivalents at the start of the year		169	1,332
Cash and cash equivalents at the end of the year		194	169

 

The audited financial information for the years ended 30 June 2016 and 30 June 2015 contained in this document does not constitute statutory accounts as defined in the Companies Act 2006. The comparative financial information is based on the statutory accounts for the financial year ended 30 June 2015. Those accounts, upon which the auditors issued an unqualified opinion with emphasis of matter paragraphs, have been delivered to the Registrar of Companies. The financial information for the year ended 30 June 2016 has been extracted from the financial statements of GCM Resources plc which will be delivered to the Registrar of Companies in due course. The auditors have issued an unqualified opinion with emphasis of matter paragraphs on the Group's statutory financial statements for the year ended 30 June 2016. The emphasis of matter paragraphs are in relation to the recoverability of  intangible mining assets and going concern. The preliminary announcement was approved by the Board of Directors on 17 November 2016.

For further information:

GCM Resources plc James Hobson CFO & Company Secretary  [phone]	Bell Pottinger Public Relations Lorna Cobbett [phone]
ZAI Corporate Finance Ltd Nominated Adviser and Broker Peter Trevelyan-Clark, John Treacy [phone]

GCM Resources plc
Tel: [phone]
[e-mail]; www.gcmplc.com

 

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