Half Yearly Report

RNS Number : 2169G

Aurum Mining PLC

19 November 2015

 

AURUM MINING PLC

("Aurum" or "the Company")

Interim Results for the six months ended 30 September 2015

Aurum Mining plc (AIM: AUR), the Spanish focused gold and tungsten explorer, is pleased to report its interim results for the six months ended 30 September 2015.

Contacts:
Aurum Mining plc	www.aurummining.net
Sean Finlay	[phone]
WH Ireland Limited
Nominated Adviser & Broker	www.wh-ireland.co.uk
Mike Coe, Ed Allsopp	[phone]

Aurum Mining Plc

Review of Activities

Aurum Mining plc (AIM: AUR) is pleased to announce its interim results for the six months ended 30 September 2015.

The Company's 2014 Annual Report, which was published on 30 June 2015, outlined that the Board was in the process of changing the direction of the Company due to the very challenging market conditions that continue to impact the Natural Resource sector. The Report went onto say that the Board would be pursuing a twin strategy of identifying a transformational deal for the Company while looking to deliver value from the Company's existing highly prospective gold and tungsten portfolio.

The Board continues to be optimistic about the Company's  exploration assets in North-West Spain and is in the process of designing a future work programme for the gold projects with the Company's joint venture partner, Ormonde Mining plc ("Ormonde") (AIM: ORM).

Given that the mining sector for small companies is likely to be difficult for some time to come, the Board will continue to actively look at other opportunities to maximise Aurum's potential as a listed company and thus provide the Company's loyal shareholders with a chance to improve their returns. Mindful of the Company's size in what has become a very tough sector, the Board has continued to keep operational costs to a bare minimum during the period.

The Board is aware of the fact that the past few years have witnessed a lacklustre performance for Shareholders, but is hopeful that the Company will be able to provide positive updates on both tiers of the strategy by the time of the Company's 2015 Annual Results.

Key financials

For the six months to 30 September 2015, the Group reported a loss of £89,000 compared to a loss of £172,000 for the same period in 2014.

On 15 April 2015 the Company announced that it had completed a subscription of 25,758,356 New Ordinary Shares to new and existing Shareholders at a price of 1 pence per share to raise approximately £257,500 before expenses.  The funds raised are being used to fund working capital requirements to enable the business to pursue its revised strategy.

During this period of transition, cash management and cost control have remained key priorities for the Company. Administrative costs have been materially reduced over the last twelve months.

Corporate

The Board would like to thank its Shareholders and advisers for their input during this transitional period.

To facilitate the transformation process and to reduce costs, the Company announced various Directorate changes during the period.  David Williams, the Company's major Shareholder, was appointed to the Board as Chairman, and Chris Eadie and Mark Jones stepped down from the Board. Sean Finlay stepped down as Chairman on David's appointment but remains on the Board as a Non-Executive Director along with Haresh Kanabar who also remains on the Board as a Non-Executive Director. Chris Eadie continues to assist the Company as a consultant on a part-time basis.

In order to preserve cash and keep operating costs to a minimum, David Williams has agreed to take no salary until a transformational deal is completed.

Qualified Person

Sean Finlay, Professional Geologist, Chartered Engineer, Non-Executive Director of Aurum Mining Plc, and a qualified person as defined in the Guidance Note for Mining, Oil and Gas Companies, June 2009, of the London Stock Exchange, has reviewed and approved the technical information contained in this report.

On behalf of the Board

David Williams                                               

Chairman                                             

19 November 2015

aurum mining plc

STATEMENT OF PROFIT AND LOSS AND OTHER COMPREHENSIVE INCOME

for the six months ended 30 september 2015

		Six months to 30 September	Six months to 30 September	Year ended 31 March
		2015	2014	2015
	Notes	£'000	£'000	£'000
		Unaudited	Unaudited	Audited
Impairment charge		(2)	-	(27)
Administrative expenses		(87)	(172)	(290)
Operating loss		(89)	(172)	(317)
Finance income		-	-	-
Loss for the year before taxation		(89)	(172)	(317)
Taxation		-	-	-
Loss and total comprehensive loss		(89)	(172)	(317)
Loss and total comprehensive loss per share expressed in pence per share
Basic and Diluted	2	(0.05)p	(0.12)p	(0.22)p

aurum mining plc

statement of financial position

as at 30 september 2015

		Six months to 30 September	Six months to 30 September	Year ended 31 March
		2015	2014	2015
Assets	Notes	£'000	£'000	£'000
		Unaudited	Unaudited	Audited
Non-current assets
Intangible assets	3	899	899	899
Investments	4	77	64	79
Total non-current assets		976	963	978
Current assets
Receivables		13	57	13
Cash and cash equivalents		83	67	106
Total current assets		96	124	119
Total assets		1,072	1,087	1,097
Liabilities
Current liabilities
Trade and other payables		39	74	89
Total current liabilities		39	74	89
Total liabilities		39	74	89
Net assets		1,033	1,013	1,008
Capital and reserves attributable to the equity holders of the company
Share capital	5	1,718	1,461	1,461
Shares to be issued		-	-	140
Share premium		11,593	11,596	11,596
Retained deficit		(12,278)	(12,044)	(12,189)
Total equity		1,033	1,013	1,008

aurum mining plc

 statement of Changes in equity

	Share capital	Shares to be issued	Share premium	Retained deficit	Total Equity
	£'000	£'000	£'000	£'000	£'000
At 1 April 2015	1,461	140	11,596	(12,189)	1,008
Total comprehensive expense for the period	-	-	-	(89)	(89)
Issue of shares net of issue costs	257	(140)	(3)	-	114
At 30 September 2015 (unaudited)	1,718	-	11,593	(12,278)	1,033

At 1 April 2014	1,413	-	11,585	(11,872)	1,126
Total comprehensive expense for the period	-	-	-	(172)	(172)
Issue of shares net of issue costs	48	-	11	-	59
At 30 September 2014 (unaudited)	1,461	-	11,596	(12,044)	1,013

At 1 April 2014	1,413	-	11,585	(11,872)	1,126
Total comprehensive expense for the year	-	-	-	(317)	(317)
Issue of shares net of issue costs	48	-	11	-	59
Shares to be issued	-	140	-	-	140
At 31 March 2015 (audited)	1,461	140	11,596	(12,189)	1,008

aurum mining plc

statement of cash flows

for the six months ended 30 september 2015

	Six months to 30 September	Six months to 30 September	Year ended 31 March
	2015	2014	2015
	£'000	£'000	£'000
	Unaudited	Unaudited	Audited
Cash flows from operating activities
Loss for the year before tax	(89)	(172)	(317)
Adjustments for:
Impairment charge	2	-	27
Cash flow from operating activities before changes in working capital	(87)	(172)	(290)
Decrease in other receivables	-	5	7
(Decrease) / increase in trade and other payables	(50)	(39)	(24)
Net cash flow used in operating activities	(137)	(206)	(307)
Financing activities
Proceeds from issue of share capital	117	60	60
Expenses paid in connection with share issues	(3)	(1)	(1)
Cash received in respect of shares to be issued	-	-	140
Net cash flow from financing activities	114	59	199
Net decrease in cash and cash equivalents	(23)	(147)	(108)
Cash and cash equivalents at the beginning of the period/ year	106	214	214
Cash and cash equivalents at the end of the period/ year	83	67	106

Aurum Mining Plc

Notes to the Interim Financial Statements

For the half year ended 30 September 2015

1. Basis of preparation

The unaudited interim financial statements have been prepared in accordance with International Financial Reporting Standards, International Accounting Standards and Interpretations (collectively IFRSs). The company has not elected to comply with IAS 34 "Interim Financial Reporting" as permitted. The principal accounting policies used in preparing the interim financial statements are unchanged from those disclosed in the Company's Annual Report for the year ended 31 March 2015 and are expected to be consistent with those policies that will be in effect at the year end except the Company has adopted a number of revised standards and interpretations. However, none of these has had a material affect on the Company's reporting. In addition the IASB has issued a number of IFRS and IFRIC amendments and interpretations since the last annual report.

The financial statements for the six months ended 30 September 2015 and 30 September 2014 are un-reviewed and unaudited. The comparative financial information does not constitute statutory financial statements as defined by Section 434 of the Companies Act 2006. The comparative financial information for the year ended 31 March 2015 is not the Company's full statutory accounts for that period. A copy of those statutory financial statements has been delivered to the registrar of companies. The auditors' report on those accounts was unqualified, but did draw attention by way of emphasis, in respect of the company's ability to continue as a going concern, but did not contain a statement under section 498 (2) - (3) of the Companies Act 2006.

The company's financial statements are presented in Great Britain Pounds Sterling, and all values are rounded to the nearest thousand Pounds (£'000) except when otherwise indicated.

Going concern

Following a review of the Company's operations, its current financial position and cash flow forecasts, the Directors have formed a view that the Company will have sufficient cash resources available to it to continue in operational existence and meet its financial commitments as they arise in the next twelve months. The Directors have formed this view based on the amount of available cash within the Company, the Company's historical track record of raising funds from the AIM market, and the assets and investments the Company holds which could be made available for potential sale, should the need arise.

Based on the above the Directors have concluded that the Company can continue as a going concern for a period of at least twelve months from the date of signing the interim financial statements. Accordingly, the Directors continue to adopt the going concern basis for the preparation of these interim financial statements.   

The forecasts prepared by the directors reflect the requirements for the Company to raise further funds over the next twelve months or to dispose of at least one of the assets or investments of the Company. Given that at the date of approval of these financial statements there are no legally binding agreements in place relating to either fundraising or to the sale of any of the company's assets or investments, there can be no certainty relating to these potential causes of action, despite the Company's track record of raising funds or completing asset transactions. The financial statements do not include the adjustments that would result if the company was unable to continue as a going concern, which would principally relate to the impairment of intangible assets and investments.

2. Loss per share

Basic loss per share is calculated by dividing the loss attributable to the ordinary shareholders by the weighted average number of ordinary shares outstanding during the period.

For diluted loss per share, the weighted average number of shares in issue is adjusted to assume conversion of all dilutive potential ordinary shares. 

As at 30 September 2015 there were 4,450,000 (30 September 2014: 4,450,000, 31 March 2015: 4,450,000) potentially dilutive ordinary shares.

The effect of all potential ordinary shares arising from the exercise of options is anti-dilutive and therefore diluted loss per share has not been calculated.

	Six months to 30 September	Six months to 30 September	Year ended 31 March
	2015	2014	2015
	£'000	£'000	£'000
	Unaudited	Unaudited	Audited
Net loss attributable to equity holders of the parent:
From total operations	(89)	(172)	(317)

	Six months to 30 September	Six months to 30 September	Year ended 31 March
	2015	2014	2015
	Number	Number	Number
	Unaudited	Unaudited	Audited
Weighted average number of shares:
Weighted average number of shares	170,687,372	142,162,260	145,296,862

3. Intangible assets

	30 September	30 September	31 March
	2015	2014	2015
	£'000	£'000	£'000
	Unaudited	Unaudited	Audited
Gold exploration	899	899	899
Total intangible assets	899	899	899

4. Investments

	30 September	30 September	31 March
	2015	2014	2015
	£'000	£'000	£'000
	Unaudited	Unaudited	Audited
Investment in Morille Mining	64	64	64
Investment in Plymouth Minerals Ltd	13	-	15
Total intangible assets	77	64	79

5. Share capital

	Number	Nominal value	Share premium	Total
		£'000	£'000	£'000
Allotted, issued and fully paid ordinary shares of £0.01
As at 1 April 2014	141,291,930	1,413	11,585	12,998
Issue of shares net of issue costs	4,800,000	48	11	59
As at 30 September 2014 and 31 March 2015	146,091,930	1,461	11,596	13,057

As at 1 April 2015	146,091,930	1,461	11,596	13,057
Issue of shares net of issue costs	25,758,356	257	(3)	255
As at 30 September 2015	171,850,286	1,718	11,593	13,311

 

END

 

 

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