Final Results

RNS Number : 3556E

Greatland Gold PLC

03 November 2015

 



3 November 2015

Greatland Gold plc

("Greatland" or "the Company")

Final Results

Greatland Gold plc (AIM:GGP), the gold and nickel focussed mineral exploration and development company based in Australia, announces its financial results for the year ended 30 June 2015.

Chairman's Statement

During the last year Greatland Gold has continued its proficient progress. Despite the difficult market conditions within the mining sector at present, we believe the medium term to longer term fundamentals for resources remain good. On that backdrop we have continued to push ahead with our exploration activity, whilst maintaining a disciplined approach towards capital allocation.

We raised £850,000 of equity during the year that allowed us to pursue opportunities at several of our sites.

Looking at specific assets, we succeeded in identifying a very substantial nickel target at our Bromus project, along with three other bedrock conductors that require drill testing. Currently we are working to secure all relevant approvals for drilling.

This year also saw progress at our Ernest Giles project, where we drilled several gold and nickel targets. Initial drilling results revealed significant nickel prospective rocks in the Carnegie area.

During the year we were returned the Firetower project licences and now retain 100% of these which are a robust opportunity for gold and base metals.

Following an internal review, which Callum Baxter discusses in more detail in his Chief Executive's Review of Operations and Finance, we have taken the decision to focus on our more advanced projects, and consequently we disposed of several projects and have also reduced the licence area for all remaining projects.

The price of gold remained weak throughout the last financial year, in part reflecting uncertainty over US monetary policy. However, we remain confident in gold's long-term fundamentals. The economic uncertainty that continues to weigh upon global markets, particularly the economic challenges in China, mean that demand for gold as a safe haven investment is likely to be maintained, leading to a more stable price. Consequently, we continue to pursue new and interesting projects in highly prospective geological areas with known deposits of gold and nickel.  Our thanks go to Callum and the team.

Andrew R. McM. Bell

Chairman

Chief Executive's Review of Operations and Finance

We have had an active year at Greatland Gold, with encouraging progress at Ernest Giles, Bromus, Firetower and Warrentinna.  Following an internal review, in September of this year we announced that we would increase our focus on these more advanced opportunities within our portfolio, reducing our licence areas to focus on better targets.  We also said we would be looking at more advanced opportunities elsewhere, and we are currently evaluating several projects in jurisdictions outside of Australia.

Over the past 12 months the Group recorded a loss of £1,077,779, equating to a loss of 0.15 pence per share with net cash inflow for the year of £197,237. The loss for the year is reflective of total administrative expenses of £279,431 plus exploration costs of £259,263 and an impairment charge of £540,570. This compares to a loss of £864,270 in the previous year that equated to a loss of 0.16 pence per share. The Group's cash deposits stood at £748,117 at the period end.

We invested the equity raised this year into drilling programmes at Ernest Giles and Bromus, after our surveys proved particularly encouraging. At Ernest Giles, which is virtually unexplored, our drilling revealed promising areas. At Bromus, our ground electromagnetic survey identified significant bedrock conductors, and we look forward to commencement of drilling in the coming months after securing all relevant approvals. The retention of 100% of the licences at the Firetower gold project has given us full ownership of another valuable asset that offers a robust opportunity. At Warrentinna we completed a review of the project and additional drilling is scheduled for the current quarter.

In line with our strategic review we disposed of our Lackman Rock and Lisle projects during the year along with several other early stage opportunities. Impairment on our portfolio was undertaken and reflected in these accounts.

We are confident that our judicious approach to financing, combined with our pragmatic accounting policies and focus on advanced opportunities will allow the Company to take advantage of the many opportunities that arise in times such as these.

The sector continues to face the challenges of falling commodity prices, and we have not been immune to this environment. However, the long-term prospects for both Greatland Gold and the sector are good, and we are looking forward to reporting on our continued progress over the coming year.  

Callum N. Baxter

Chief Executive

Results and dividends

The Group's results are described in the Group statement of comprehensive income below. The Group has incurred a loss for the year of £1,077,779 (2014:  £864,270).

The Directors do not recommend the payment of a dividend.

Group statement of comprehensive income

for the year ended 30 June 2015

		Year ended  30 June 2015 £		Year ended  30 June 2014 £
Revenue		-		-
Exploration costs		(259,263)		(227,883)
Impairment charge Administrative expenses		(540,570) (279,431)		(90,224) (421,144)
Operating loss		(1,079,264)		(739,251)
Finance revenue Loss on disposal of investments		1,485 -		1,714 (126,733)
Loss before taxation		(1,077,779)		(864,270)
Income tax expense		-		-
Loss for the year		(1,077,779)		(864,270)
Other comprehensive income Exchange differences on translation of foreign operations		(90,937)		(72,474)
Reversal of revaluation provision on investments		-		132,148
Other comprehensive income for the year net of taxation		(90,937)		59,674
Total comprehensive income for the year attributable to equity holders of the parent company		(1,168,716)		(804,596)
Loss per share - basic and diluted		(0.15) pence		(0.16) pence

All operations are considered to be continuing.

Group balance sheet

as at 30 June 2015

		30 June 2015		30 June 2014
		£	£	£	£
ASSETS
Non-current assets Tangible assets		10,381		15,520
Intangible assets		292,200		880,941
			302,581		896,461
Current assets Cash and cash equivalents Trade and other receivables Available for sale financial assets		748,117 48,267 -		556,085 30,421 -
Total current assets			796,384		586,506
TOTAL ASSETS			1,098,965		1,482,967
LIABILITIES
Current liabilities Trade and other payables		(175,051)		(189,087)
TOTAL LIABILITIES			(175,051)		(189,087)
NET ASSETS			923,914		1,293,880
EQUITY Called-up share capital Share premium reserve Share based payment reserve Retained earnings		992,338 5,050,183 60,000 (5,399,980)		579,233 4,664,538 60,000 (4,322,201)
Other reserves		221,373		312,310
TOTAL EQUITY			923,914		1,293,880

 

 

Group statement of changes in equity

for the year ended 30 June 2015

 

	Share capital	Share premium account	Share based payment reserve	Retained earnings	Other reserves	Total
	£	£	£	£	£	£
As at 30 June 2013	350,661	4,256,610	-	(3,457,931)	252,636	1,401,976
Loss for the year	-	-	-	(864,270)	-	(864,270)
Reversal of provisions  on revaluation of available for sale investments	-	-	-	-	132,148	132,148
Currency translation differences	-	-	-	-	(72,474)	(72,474)
Total comprehensive income	-	-	-	(864,270)	59,674	(804,596)
Share option charge	-	-	60,000	-	-	60,000
Share capital issued	228,572	446,428	-	-	-	675,000
Cost of share issue	-	(38,500)	-	-	-	(38,500)
Total contributions by and distributions to owners of the Company	228,572	407,928	60,000	-	-	696,500
As at 30 June 2014	579,233	4,664,538	60,000	(4,322,201)	312,310	1,293,880

Loss for the year	-	-	-	(1,077,779)	-	(1,077,779)
Reversal of provisions on revaluation of available for sale investments	-	-		-	-	-
Currency translation differences	-	-	-	-	(90,937)	(90,937)
Total comprehensive income	-	-	-	(1,077,779)	(90,937)	(1,168,716)
Share option charge	-	-	-	-	-	-
Share capital issued	413,105	436,895		-	-	850,000
Cost of share issue	-	(51,250)		-	-	(51,250)
Total contributions by and distributions to owners of the Company	413,105	385,645	-	-	-	798,750
As at 30 June 2015	992,338	5,050,183	60,000	(5,399,980)	221,373	923,914

Other reserves	Merger reserve	Foreign currency translation reserve	Available for sale financial assets reserve	Total other reserves
	£	£	£	£
As at 30 June 2013	225,000	159,784	(132,148)	252,636
Reversal of  revaluation of available for sale investments	-	-	132,148	132,148
Currency translation differences	-	(72,474)	-	(72,474)
Total comprehensive income	-	(72,474)	132,148	59,674
As at 30 June 2014	225,000	87,310	-	312,310

Reversal of revaluation of available for sale investments	-	-	-	-
Currency translation differences	-	(90,937)	-	(90,937)
Total comprehensive income	-	(90,937)	-	(90,937)
As at 30 June 2015	225,000	(3,627)	-	221,373

Group cash flow statement

for the year ended 30 June 2015

		Year ended 30 June 2015 £		Year ended 30 June 2014 £
Cash (out)flows from operating activities Operating loss (Increase)/Decrease in trade & other receivables (Decrease)/Increase in trade & other payables Depreciation Impairment of exploration properties Share option charge		(1,079,264) (17,846) (14,036) 3,531 540,570 -		(739,251) 13,020 162,591 4,920 90,224 60,000
Net (decrease) in cash and cash equivalents from operations		(567,045)		(408,496)
Cash in/(out)flows from investing activities Interest received Proceeds from share disposals Receipts from sale of tangible assets Payments to acquire intangible assets		1,485 - - (35,953)		1,714 46,457 - (13,201)
Net cash (out)/inflows used in investing activities		(34,468)		34,970
Cash inflows from financing activities Proceeds from issue of shares Transaction costs of issue of shares		850,000 (51,250)		675,000 (38,500)
Net cash flows from financing activities		798,750		636,500
Net increase in cash and cash equivalents		197,237		262,974
Cash and cash equivalents at the beginning of period		556,085		304,338
Exchange (loss) on cash and cash equivalents		(5,205)		(11,227)
Cash and cash equivalents at end of period		748,117		556,085

 

Notes

1	General Information The financial information set out above does not comprise statutory accounts for the purposes of Section 434 of Companies Act 2006. The financial information above has been extracted from the Company's statutory financial statements upon which the auditor's opinion is unqualified and does not include any statement under Section 498 of the Companies Act 2006.
2	Authorisation of financial statements and statement of compliance with IFRS The group financial statements of Greatland Gold plc for the year ended 30 June 2015 were authorised for issue by the board on 2 November 2015 and the balance sheets signed on the board's behalf by Mr Callum Baxter and Mr Andrew Bell.  Greatland Gold plc is a public limited company incorporated and domiciled in England and Wales.  The Company's ordinary shares are traded on AIM. The Group's financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS). The Company's financial statements have been prepared in accordance with IFRS as adopted by the European Union and as applied in accordance with the provisions of the Companies Act 2006. The principal accounting policies adopted by the Group and Company are set out below.

 

3	Loss per share
	The basic loss per share is derived by dividing the loss for the period attributable to ordinary shareholders by the weighted average number of shares in issue.
		2015 £		2014 £
	Loss for the period	(1,077,779)		(864,270)
	Weighted average number of Ordinary shares of £0.001 in issue Loss per share - basic	741,937,920 (0.15) pence		543,811,795 (0.16) pence
	Weighted average number of Ordinary shares of £0.001 in issue inclusive of outstanding options	741,937,920		543,811,795
	As inclusion of the potential Ordinary shares would result in a decrease in the loss per share they are considered to be anti-dilutive; as such, a diluted earnings per share is not included.

 

For more information please contact:

Greatland Gold plc

Callum Baxter

Tel  [phone]

Email:  [e-mail]

www.greatlandgold.com

Grant Thornton UK LLP (Nomad)

Colin Aaronson/Richard Tonthat/Daniel Bush

Tel  [phone]

SI Capital Limited (Broker)
Nick Emerson/Andy Thacker
Tel  [phone]

RLM Finsbury
Gordon Simpson / Olivia Simpson
Tel [phone]

Notes to Editors

Greatland is a mineral exploration and development company based in Australia. The principal activity of Greatland Gold plc is to explore for and develop natural resources, with a focus on gold and nickel. The Company currently has four mineral projects located in Australia, including the Ernest Giles, Bromus, Firetower and Warrentinna projects. The pipeline of projects targets highly prospective areas for large gold and nickel sulphide orebodies. The Company was established in London in 2005 and admitted to AIM in July 2006.

The board seeks to increase shareholder value through the systematic evaluation of its existing resource assets, as well as the acquisition of suitable exploration and development projects and producing assets.

Greatland has a UK and Australian based board of directors, with a head office in London and an exploration office in Australia.

 

END

 

 

FR UOSRRVNAARAA