Interim Results

RNS Number : 0981P

Athol Gold Limited

28 September 2011

 



28 September 2011

Athol Gold Limited

(the "Company")

Unaudited Interim Results for the Six Months Ended 30 June 2011

Athol Gold Limited today announces its unaudited interim results for the six months ended 30 June 2011.

Chairman's Review

The modest decrease in NAV per share from 0.64p to 0.54p is disappointing but reflects the weak market in mining juniors. We expect this market to change. Gold has dipped in recent days as a result of yet more margin hikes on COMEX and the SME. But you cannot buck inexorable market forces forever.

There has been some talk of deflationary threats. But we remain convinced that the leaders of the West do not believe in the invisible hand of capitalism and will not allow banks to fail or force workers to work harder for less money as they should. As such the printing presses will soon be whirring into action once again and gold will head sharply higher and that will, we believe, drive a material re-rating of our carefully selected portfolio.

We note that there are some 40 investment companies listed on AIM and PLUS with funds under management of less than £10 million. At this size and with the high fixed costs of a publicly quoted company few can deliver a return for shareholders. We accept that Athol needs to increase its assets under management in order to reach what we deem to be critical mass. We aim to do this in a way that does not dilute shareholders and we will be outlining our plans shortly. 

As such we approach the future with confidence and excitement.

On behalf of the board

Jennifer Allsop

Chairman

For further information please call:

Athol Gold Limited Jennifer Allsop Executive Chairman		[phone]
Libertas Capital Sandy Jamieson		[phone]
Rivington Street Corporate Finance Limited Jon Levinson / Dru Edmonstone	+ 44 20 7628 2200
Bishopsgate Communications Limited Nick Rome	[phone]

Statement of comprehensive Income

for the 6 months ended 30 June 2011

		UNAUDITED	UNAUDITED	AUDITED
		6 months to 30 June 2011	6 months to 30 June 2010	12 months to 31 December 2010
		£'000	£'000	£'000
Continuing operations:
Net gains on disposal of investments		66	-	23
Change in fair value of investments		(466)	(3)	1,525
Other income		-	23	-
Total income		(400)	20	1,548
Operating expenses		(174)	(80)	(483)
Operating (loss)/profit		(574)	(60)	1,065
Finance income		-	(2)	(2)
(Loss)/profit before taxation		(574)	(62)	1,063
Taxation expense		-	-	-
(Loss)/profit for the period attributable to owners of the Company		(574)	(62)	1,063
(Loss)/earnings per share attributable to owners of the Company during the period		pence	pence	pence
Basic:		(0.10)	(0.04)	0.62
Diluted:		(0.10)	(0.04)	0.56

Statement of Financial Position

for the 6 months ended 30 June 2011

		UNAUDITED	UNAUDITED	AUDITED
		30 June 2011	30 June 2010	31 December  2010
		£'000	£'000	£'000
CURRENT ASSETS
Financial assets		3,172	-	2,869
Trade and other receivables		22	85	28
Cash and cash equivalents		5	374	42
		3,199	459	2,939
CURRENT LIABILITIES
Trade and other payables		69	202	290
		69	202	290
NET CURRENT ASSETS		3,130	257	2,649
NON-CURRENT LIABILITIES
Convertible unsecured loan notes		37	-	137
		37	-	137
NET ASSETS		3,093	257	2,512
EQUITY
Share capital		1,438	344	981
Share premium		3,581	2,391	2,838
Loan note equity reserve		-	-	45
Capital reserve		15,736	15,736	15,736
Retained earnings		(17,662)	(18,214)	(17,088)
Equity attributable to owners of the Company and total equity		3,093	257	2,512

Statement of Cash flow

for the 6 months ended 30 June 2011

		UNAUDITED	UNAUDITED	AUDITED
		6 months to 30 June 2011	6 months to 30 June 2010	12 months to 31 December 2010
		£'000	£'000	£'000
OPERATING ACTIVITIES
Profit/(Loss) before taxation		(574)	(62)	1,063
Adjustments for:
Share based payment charge		-	-	1
Profit on disposal of trading investments		(66)	-	(23)
Fair value adjustment on financial assets		466	3	(1,525)
Finance costs		-	-	2
Operating cashflow before working capital changes		(174)	(59)	(482)
(Decrease) in trade and other receivables		6	(71)	(12)
Increase/(decrease) in trade and other payables		(221)	42	130
Net cash outflow from operating activities		(389)	(88)	(364)
INVESTING ACTIVITIES
Purchases of investments		(1,170)	-	(1,548)
Disposals of investments		467	-	227
Net cash (outflow)/inflow from investing activities		(703)	-	(1,321)
FINANCING ACTIVITIES
Proceeds from share issues		1,055	-	1,143
Share issue expenses		-	-	(58)
Proceeds from issue of convertible loan notes		-	-	180
Net cash inflow from financing activities		1,055	-	1,265
Net (decrease)/increase  in cash and cash equivalents		(37)	(88)	(420)
Cash and cash equivalents at start of period		42	462	462
Cash and cash equivalents at end of period		5	374	42

Notes to the interim statement

for the 6 months ended 30 June 2011

1. General information

The Company is a limited company listed on AIM and is registered in the Cayman Islands.

The address of its registered office is Walker House, Mary Street, PO Box 908GT, George Town, Grand Cayman, Cayman Islands.  The financial statements are presented in Pounds Sterling which is the Company's presentational currency.

2. Basis of preparation

The interim financial statements of Athol Gold Limited have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union (EU) and on the historical cost basis using the accounting policies which are consistence with those set out in the Company's Annual Report and Accounts for the year ended 31 December 2010.

This interim financial information for the six months to 30 June 2011 was approved by the board on 27 September 2011.

The unaudited interim financial information for period ended 30 June 2011 does not constitute statutory accounts.. The comparative figures for the year ended 31 December 2010 are extracted from the statutory financial statements which contain an unqualified audit report.

3. Earnings per share

	The basic and diluted earnings per share is calculated by dividing the profit/(loss) attributable to owners of the Company by the weighted average number of ordinary shares in issue during the year.
		6 months to 30 June 2011	6 months to 30 June 2010	12 months to 31 December 2010
		£'000	£'000	£'000
	Weighted average number of shares for calculating basic earnings per share	563,008,758	137,401,194	171,156,251
	Weighted average number of shares for calculating fully diluted earnings per share	563,008,758	137,401,194	190,070,885

The diluted loss per share for the 6 months to 30 June 2010 and the 6 months to 30 June 2011 is the same as the basic loss per share as the losses in each period have an anti-dilutive effect.

4. Share capital

		30 June 2011	30 June 2010	31 December  2010
		£'000	£'000	£'000
	Authorised (par value of 0.25p):	4,000,000,000	4,000,000,000	4,000,000,000
	Issued and fully paid (par value of 0.25p each):	573,339,681	137,401,194	392,284,866
	Between 11 January and 18 January 2011, 54,000,000 shares were issued at 0.25p each as a result of the conversion of loan notes Between 31 January and 3 February 2011, 72,996,988 shares were issued for cash at 0.83p each as the result of a private placing. On 21 February 2011, 32,901,200 shares were issued at 1p each as a result of the conversion of loan notes. Also on 21 February 2011, 19,156,627 shares were issued at 0.83p each as a result of the conversion of loan notes. On 27 June 2011 4,000,000 shares were issued at 0.25p as the result of the conversion of loan notes.

 

END

 

 

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