BEZANT RESOURCES PLC

Earnings Release • Mar 30, 2015

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RNS Number : 7564I

Bezant Resources PLC

30 March 2015

30 March 2015

Bezant Resources Plc

("Bezant" or the "Company")

Interim Results for the six months ended 31 December 2014

Bezant (AIM: BZT), the AIM listed gold and copper exploration and development company operating in the Philippines and Argentina, announces its unaudited interim results for the six months ended 31 December 2014. 

Highlights:              

Corporate:

·      Group loss after tax of £328,000 (31 December 2013: £798,000) primarily reflecting expenditure required in accordance with the Group's licence obligations.

·      Reduction in expenditure by c.59 per cent. (£470,000) versus the equivalent six month period in 2013, achieved due to various successful cost cutting initiatives.

·      c.£2.1 million cash at bank at the period end (30 June 2014: £2.4 million).

·      Bezant remains well funded to satisfy its annual work obligations in the Philippines as discussions continue regarding the potential sale or joint venture of the Company's flagship Mankayan Project.

·      Minimal expenditure commitments in respect of the Company's Eureka Project in Argentina.

Mankayan Copper-Gold Project, Philippines (the "Mankayan Project" or "Mankayan"):

·      Following receipt of all the technical data generated by Gold Fields Netherlands Services BV ("Gold Fields"), work commenced on updating the project's development economics via the commissioning of independent engineering and financial assessments on the historic 2011 conceptual study.

·      GHD Group Pty. Limited's review identified and recommended two key alterations to the mine development plans:

o  a change from vertical shaft ore haulage to conveyor decline haulage; and

o  improved mine ventilation to alleviate unnecessary refrigeration plant costs.

·      US$307 million of potential cost reductions outlined in a separate independent report and updated financial model generated by Mining Plus Pty. Limited recommending an up to 20 million tonnes per annum ("Mtpa") block caving operation over an estimated 28 year mine life.

·      At metals prices of US$3.00 per pound of copper and US$1,250 per ounce of gold and a production rate of 20Mtpa, the project returns an estimated:

o  post-tax NPV of approximately US$739 million at an 8 per cent. discount rate

o  total post-tax net cash flow of approximately US$3.7 billion

o  post-tax internal rate of return ("IRR") of 21 per cent.

·      Project represents one of the world's largest undeveloped, JORC defined, copper-gold resources capable of sustaining highly robust margins.

·      Discussions ongoing with potential acquirers and JV partners following publication of the findings of the independent reviews.

·      Sale process being hampered by an adverse mining tax proposal made to the Philippines Government by a civil service body (Mining Industry Coordinating Council) in 2014.

·      Tax proposal has not been adopted but the uncertainty created is affecting the whole of the domestic mining industry.

·      The Chamber of Mines of the Philippines is in formal dialogue with the Government over the proposal.

Eureka Copper-Gold Project, Argentina (the "Eureka Project"):

·      Argentinean exploration activities and expenses scaled down to conserve cash resources whilst focussing on the potential sale or joint venture of the Mankayan Project.

·      Determining possible joint venturing opportunities to move closer towards potential future production.

Post Period End:

·      Board currently finalising and implementing additional Group-wide cost saving initiatives, including the reduction of Directors' fees, wages and other costs.

Bernard Olivier, Chief Executive Officer of Bezant, commented:

"We have continued to maintain a strong financial position and rigorous cost controls as we endeavour to deliver further value from the Group's attractive asset portfolio. The third party expert reviews of potential development pathways for the Mankayan Project, has proven to be extremely beneficial, with significant reductions identified in the estimated expenditure required to both build and operate the project.

"As a long term, highly robust source for copper and gold, Mankayan now represents an even more attractive opportunity for potential purchasers or JV partners, however discussions are being hampered by the continuing commodity market downturn and, more significantly, the proposal made to the Philippines Government regarding the potential adoption of a highly punitive new tax regime for mining companies. We are supporting the Chamber of Mines of the Philippines in its engagement with the relevant Government authorities to oppose the proposal. We firmly believe that the proposal sits at odds with the Government's stated strategy to encourage further cross-border investment into natural resources.

"In order to maximise the efficient use of the Group's existing cash reserves, we have made rigorous cost savings within the business during the period and will shortly be implementing salary reductions across the Company, including at Board level. Bezant has an established track record of delivering shareholder value through efficient deployment of capital and operational excellence - our intention is to remain well positioned to continue to pursue this objective."

For further information, please contact:

Bernard Olivier Chief Executive Officer, Bezant Resources Plc     Laurence Read Non-Executive Director/Communications Officer, Bezant Resources Plc                            James Harris / Matthew Chandler / James Dance Strand Hanson Limited                                                           James Maxwell / Jen Boorer N+1 Singer                                               or visit http://www.bezantresources.com

Tel: +61 40 894 8182 Tel: +44 (0)20 3289 9923 Tel: +44 (0)20 7409 3494 Tel: +44 (0)20 7496 3000

Chairman's Statement

I have pleasure in presenting the Group's unaudited interim results for the six month period ended 31 December 2014. Reflecting our ongoing activities, the unaudited consolidated results for the six month period ended 31 December 2014 show a loss after tax of £328,000 (31 December 2013: £798,000). This represents a significant spending reduction of approximately 59 per cent. (£470,000) compared to the equivalent period in the previous year and reflects our successful ongoing cost saving initiatives as previously reported. We are currently in the process of implementing additional cost savings, including a reduction in Directors' fees and wages and other costs. The Group had approximately £2.1 million cash at bank at the period end (30 June 2014: £2.4 million) and remains well funded to continue its operational activities.

Mankayan Project, Philippines

In September 2014, in order to advance discussions with third parties in respect of our flagship Mankayan Project, we commissionedtwo independent review reports from GHD Group Pty. Limited ("GHD") and Mining Plus Pty. Limited ("Mining Plus") on the historic 2011 conceptual study. The purpose of the independent reports was to assess the project's conceptual design details and assumptions in the context of recent trends in porphyry copper/gold ore mining and processing. Consequently, the original capital and operating cost estimates were updated further to an in-depth analysis of new and improved design elements and approaches to mine development. In particular, a revised financial model was generated incorporating both updated cost estimates and more recent metals prices. 

In early November 2014, we announced that Mining Plus' updated financial model had identified, in aggregate, a potential cost reduction of US$307 million in relation to the project, compared with the original 2011 study. Mining Plus recommended the development of a block caving operation of up to 20 million tonnes per annum ("Mtpa") over an estimated 28 year mine life. At the then prevailing metals prices and an assumed 20Mtpa production rate the project has an estimated post-tax internal rate of return of 21 per cent. The independent financial and technical reviews have therefore identified significant cost savings and improved the economics for what we believe was already a highly robust copper-gold project.

Discussions are ongoing with interested parties regarding the potential sale or joint venture of the Mankayan Project.However, as announced previously, the Mankayan sales process is being hampered by the proposed new Mining Tax regime in the Philippines. The new tax bill proposes levying a tax rate determined as the higher of either 10 per cent. of gross revenue or 55 per cent. of adjusted net mining revenue.

We continue to support the Chamber of Mines of the Philippines and large local mining companies', such as Benguet Corporation's, active and vocal opposition to the proposal. The proposed new mining tax is in direct contrast with the current tax reforms in other parts of the Philippine economy, with the Government planning to impose a reduced 15 per cent. corporate income tax rate for 15 years, renewable for another 15 years, under a proposal to rationalise fiscal incentives to attract increased investment. The European Chamber of Commerce of the Philippines, for example, recently commented that it fully supports the Government's proposed lower income tax rate, which will help attract investment, but then also proceeded to criticise the mining fiscal regime bill proposal, stating that the Philippines runs the risk of failing to be a competitive destination for mining investment.

Our present cash position will enable us to continue to meet all of our current mandatory licence obligations for the Mankayan Project whilst the tax proposal issue remains unresolved. 

Eureka Project, Argentina

Following due consideration, the Board decided to reduce the Company's Argentinian work programme and its associated costs during 2014 in order to better focus on the potential future sale or joint venture of Mankayan. Despite reducing the Eureka copper-gold project's ("Eureka") exploration activities, the Board continues to believe that Eureka represents an undervalued asset. Located in a major copper-gold province in Argentina, Eureka has near surface mineralisation, which has historically supported basic mining operations, and the project therefore has significant potential for the development of a low cost future mining operation. We will continue to pursue cost effective exploration and development options for Eureka.

Outlook

Whilst global mining markets and the Philippines' tax situation remain challenging, we currently have a strong cash position underpinned by a rigorous cost control regime. As a Board, we have taken the decision to implement further cost cutting measures including a reduction in Directors' salaries and wages to ensure that Bezant maintains a secure financial footing with time to leverage value from its existing assets. The Board is fully focused on identifying means to build equity value in the Company based on our track record of effective project development. In light of the current uncertainty regarding the Philippines' tax situation and its adverse impact on the timeline for the potential sale of Mankayan, as well as the current depressed commodity prices and challenging market environment, the Board is also investigating other potential project opportunities that are already in production, but which have the ability to be scaled-up.

I would like to thank all those who work with us and our shareholders for their continued loyalty and support.

Mr Edward Nealon

Non-Executive Chairman

27 March 2015

Interim Financial Information of Bezant Resources Plc

The following interim financial information of Bezant Resources Plc is for the period from 1 July 2014 to 31 December 2014.  The interim financial information was approved by the Board of Directors on 27 March 2015.

Bezant Resources Plc

Consolidated Statement of Comprehensive Income

For the period ended 31 December 2014

	Unaudited Period ended 31 December 2014 £'000		Unaudited Period ended 31 December 2013 £'000		Audited Year ended 30 June 2014 £'000
Continuing operations
Group revenue	-		-		-
Cost of sales	-		-		-
Gross profit/(loss)	-		-		-
Option Income	-		-		5,169
Depreciation	(5)		(9)		(16)
Other administrative expenses	(232)		(701)		(1,170)
Total administrative expenses	(237)		(710)		(1,186)
Group operating (loss)/profit	(237)		(710)		3,983
Interest receivable	1		1		2
Share of Associates' loss	(92)		(89)		(108)
(Loss)/profit before taxation	(328)		(798)		3,877
Taxation	-		-		-
(Loss)/profit for the period	(328)		(798)		3,877
Attributable to: Equity holders of the Company	(328)		(798)		3,877
Other comprehensive income/(expense):
Foreign currency reserve movement	227		(206)		(261)
Other comprehensive income/(expense) for the period	227		(206)		(261)
Total comprehensive (expense)/income for the period attributable to equity holders of the Company	(101)		(1,004)		3,616
(Loss)/earnings per share (pence)
Basic	(0.40p)		(0.96p)		4.67p
Diluted	(0.40p)		(0.96p)		4.48p

Bezant Resources Plc

Consolidated Statement of Changes in Equity

For the period ended 31 December 2014

	Share Capital £'000	Share Premium £'000	Other Reserves £'000	Retained Losses £'000	Total Equity £'000
Unaudited - period ended 31 December 2014
Balance at 1 July 2014	166	31,053	357	(16,787)	14,789
Current period loss	-	-	-	(328)	(328)
Foreign currency reserve	-	-	227	-	227
Total comprehensive expense for the period	-	-	227	(328)	(101)
Balance at 31 December 2014	166	31,053	584	(17,115)	14,688

Unaudited - period ended 31 December 2013
Balance at 1 July 2013	166	31,053	618	(20,664)		11,173
Current period loss	-	-	-	(798)		(798)
Foreign currency reserve	-	-	(206)	-		(206)
Total comprehensive expense for the period	-	-	(206)	(798)		(1,004)
Balance at 31 December 2013	166	31,053	412	(21,462)		10,169

Audited - year ended 30 June 2014
Balance at 1 July 2013	166	31,053	618	(20,664)	11,173
Current year profit	-	-	-	3,877	3,877
Foreign currency reserve	-	-	(261)	-	(261)
Total comprehensive expense for the period	-	-	(261)	3,877	3,616
Balance at 30 June 2014	166	31,053	357	(16,787)	14,789

Bezant Resources Plc

Consolidated Balance Sheet

As at 31 December 2014

	Notes	Unaudited 31 December 2014 £'000		Unaudited 31 December 2013 £'000		Audited 30 June 2014 £'000
ASSETS
Non-current assets
Investment in associates	4	7,720		7,418		7,457
Plant and equipment		66		64		71
Exploration and evaluation assets	5	4,791		4,796		4,791
		12,577		12,278		12,319
Current assets
Cash and cash equivalents		2,079		2,998		2,435
Trade and other receivables	6	73		82		66
		2,152		3,080		2,501
Total assets		14,729		15,358		14,820
LIABILITIES
Current liabilities
Trade and other payables	7	41		20		31
Deposit on grant of option	8	-		5,169		-
		41		5,189		31
Total liabilities		41		5,189		31
Net assets		14,688		10,169		14,789
EQUITY
Share capital	9	166		166		166
Share premium	9	31,053		31,053		31,053
Other reserves	10	584		412		357
Retained losses		(17,115)		(21,462)		(16,787)
Shareholders' equity		14,688		10,169		14,789

Bezant Resources Plc

Consolidated Statement of Cash Flows

For the period ended 31 December 2014

	Notes	Unaudited Period ended 31 December 2014 £'000		Unaudited Period ended 31 December 2013 £'000		Audited Year ended 30 June 2014 £'000
Net cash outflow from  operating activities	11	(417)		(624)		(1,007)
Cash flows from  investing activities
Loans to associates		(130)		-		-
Interest received		1		1		2
Other income		12		36		43
Net cash (outflow)/inflow from  investing activities		(117)		37		45
Decrease in cash and cash equivalents		(534)		(587)		(962)
Cash and cash equivalents at  beginning of period		2,435		3,826		3,826
Foreign exchange movement		178		(241)		(429)
Cash and cash equivalents at end  of period		2,079		2,998		2,435

Bezant Resources Plc

Notes to the Interim Financial Information

For the period ended 31 December 2014

1.         Accounting policies

The principal accounting policies applied in the preparation of these interim financial statements are set out below. These policies have been consistently applied to all the periods presented, unless otherwise stated below.

1.1        Basis of preparation

This interim report, which incorporates the financial information of the Company and its subsidiary undertakings (the "Group"), has been prepared using the historical cost convention, on a going concern basis and in accordance with International Financial Reporting Standards ("IFRS") including IAS 34 'Interim Financial Reporting' and IFRS 6 'Exploration for and Evaluation of Mineral Resources', as adopted by the European Union ("EU").

These interim results for the six months ended 31 December 2014 are unaudited and do not constitute statutory accounts as defined in section 434 of the Companies Act 2006.  The financial statements for the year ended 30 June 2014 have been delivered to the Registrar of Companies and the auditors' report on those financial statements was unqualified and did not contain a statement made under Section 498(2) or Section 498(3) of the Companies Act 2006.

Basis of consolidation

The consolidated financial statements incorporate the financial statements of the Company and its subsidiary undertakings and have been prepared using the principles of acquisition accounting, which includes the results of the subsidiaries from their dates of acquisition.

All intra-group transactions, income, expenses and balances are eliminated fully on consolidation.

A subsidiary undertaking is excluded from the consolidation where the interest in the subsidiary undertaking is held exclusively with a view to subsequent resale and the subsidiary undertaking has not previously been consolidated in the consolidated accounts prepared by the parent undertaking.

Business combination

On acquisition, the assets and liabilities and contingent liabilities of a subsidiary are measured at their fair values at the date of acquisition. Any excess of the cost of acquisition over the fair values of the identifiable net assets acquired is recognised as goodwill. Any deficiency of the cost of acquisition below the fair values of the identifiable net assets acquired (i.e. discount on acquisition) is credited to profit and loss in the period of acquisition. The interest of minority shareholders is stated at the minority's proportion of the fair values of the assets and liabilities recognised. Subsequently, any losses applicable to the minority interest in excess of the minority interest are allocated against the interests of the parent.  

Investment in associate companies is accounted for using the equity method.

1.2        Exploration, evaluation and development expenditure

Exploration, evaluation and development expenditure incurred is accumulated in respect of each identifiable area of interest. These costs are only carried forward as assets to the extent that they are expected to be recouped through the successful development of the area or where activities in the area have not yet reached a stage which permits reasonable assessment of the existence of economically recoverable reserves.  Accumulated costs in relation to an abandoned area are written off in full against profit in the year in which the decision to abandon the area is made. When production commences, the accumulated costs for the relevant area of interest are amortised over the life of the area according to the rate of depletion of the economically recoverable reserves. A regular review is undertaken of each area of interest to determine the appropriateness of continuing to carry forward costs in relation to that area of interest.

Costs of site restoration are provided when an obligating event occurs from when exploration commences and are included in the costs of that stage. Site restoration costs include the dismantling and removal of mining plant, equipment and building structures, waste removal and the rehabilitation of the site in accordance with clauses of the mining permits.  Such costs have been determined using estimates of future costs, current legal requirements and technology on a discounted basis. Any changes in the estimates for the costs concerned are accounted for on a prospective basis. In determining the costs of site restoration, there is uncertainty regarding the nature and extent of the restoration due to community expectations and future legislation. Accordingly, the costs have been determined on the basis that restoration will be completed within one year of abandoning the site.

1.3        Share based payments

The Company has historically made share-based payments to certain directors and advisers by way of the issue of share options. The fair value of these payments is calculated by the Company using the Black Scholes option pricing model. The expense is recognised on a straight line basis over the period from the date of award to the date of vesting, based on the Company's best estimate of shares that will eventually vest.

1.4        Foreign currency transactions and balances

(i) Functional and presentational currency

Items included in the Group's financial statements are measured using Pounds Sterling ("£"), which is the currency of the primary economic environment in which the Group operates ("the functional currency").  The financial statements are presented in Pounds Sterling ("£"), which is the functional currency of the Company and is the Group's presentational currency.

The individual financial statements of each Group company are presented in the functional currency of the primary economic environment in which it operates.

(ii) Transactions and balances

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing on the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at period end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the income statement.

Transactions in the accounts of individual Group companies are recorded at the rate of exchange ruling on the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the rates ruling at the balance sheet date.  All differences are taken to the income statement.

For the purpose of presenting consolidated financial statements, the assets and liabilities of the Group's foreign operations are translated at exchange rates prevailing on the balance sheet date. Income and expense items are translated at the average exchange rates for the period. Exchange differences arising are classified as equity and transferred to the Group's translation reserve. Such translation differences are recognised as income or as expenses in the period in which the operation is disposed of.

2.         Loss per share

The basic loss per ordinary share has been calculated using the loss for the period of £328,000 (31 December 2013: loss of £798,000; 30 June 2014: profit of £3,877,000) and the weighted average number of ordinary shares in issue of 82,939,525 (31 December 2013: 82,939,525; 30 June 2014: 82,939,525).

The diluted (loss)/earnings per share has been calculated using a weighted average number of shares in issue and to be issued of 82,939,525 (31 December 2013: 86,312,229; 30 June 2014: 86,581,417). Where there has been a diluted loss per share, that loss has been kept the same as the basic loss per share as the conversion of share options decreases the basic loss per share, thus being anti-dilutive.

3.	Segment reporting
	For the purposes of segmental information, the operations of the Group are focused in three geographical segments, namely: the UK, the Philippines and Argentina and comprise one class of business: the exploration, evaluation and development of mineral resources. The UK is used for the administration of the Company. The Group's operating loss arose from its operations in the UK, the Philippines and Argentina.

	Segment reporting
	For the period ended 31 December 2014
			UK	Philippines		Argentina	Total
			£'000	£'000		£'000	£'000
	Consolidated operating loss		(216)	(92)		(20)	(328)
	Included in the consolidated operating loss are the following income/(expense) items:
	Foreign currency gain		176	-		-	176
	Interest received		1	-		-	1
	Depreciation		(1)	-		(4)	(5)
	Total Assets		2,083	7,773		4,873	14,729
	Total Liabilities		(36)	-		(5)	(41)

		Segment reporting
			For the period ended 31 December 2013
					UK	Philippines		Argentina	Total
					£'000	£'000		£'000	£'000
			Consolidated operating loss		(687)	(14)		(97)	(798)
			Included in the consolidated operating loss are the following income/(expense) items:
			Depreciation		(2)	(7)		-	(9)
			Interest received		1	-		-	1
			Foreign currency gain/(loss)		(239)	8		(6)	(237)
			Total Assets		3,017	7,471		4,870	15,358
			Total Liabilities		(17)	(5,169)		(3)	(5,189)

	Segment reporting
	For the year ended 30 June 2014
			UK	Philippines		Argentina	Total
			£'000	£'000		£'000	£'000
	Consolidated operating profit/ (loss)		4,036	(117)		(42)	3,877
	Included in the consolidated operating profit/(loss) are the following income/(expense) items:
	Depreciation		(4)	-		(12)	(16)
	Interest received		2	-		-	2
	Foreign currency loss		(295)	(7)		(1)	(303)
	Total Assets		2,448	7,510		4,862	14,820
	Total Liabilities		(29)	(1)		(1)	(31)

4.         Investments in associates accounted for using the equity method of accounting

Group

	Unaudited 31 December 2014 £'000		Unaudited 31 December 2013 £'000		Audited 30 June 2014 £'000
Investment in Crescent Mining and Development Corporation	5,136		5,247		5,228
Loan due from Crescent Mining and Development Corporation	2,584		2,171		2,229
	7,720		7,418		7,457

5.         Exploration and evaluation assets

Group

	Unaudited 31 December 2014 £'000		Unaudited 31 December 2013 £'000		Audited 30 June 2014 £'000
Opening balance	4,791		4,796		4,796
E&E costs incurred	-		-		-
	4,791		4,796		4,796
E&E costs expensed	-		-		(5)
Deferred exploration and evaluation assets	4,791		4,796		4,791

6.         Trade and other receivables

Group

	Unaudited 31 December 2014 £'000		Unaudited 31 December 2013 £'000		Audited 30 June 2014 £'000
VAT refundable	9		8		6
Directors' loan	-		5		-
Other debtors	62		61		60
Prepayments	2		8		-
	73		82		66

7.         Trade and other payables

Group

	Unaudited 31 December 2014 £'000		Unaudited 31 December 2013 £'000		Audited 30 June 2014 £'000
Trade payables	26		8		4
Other payables & accruals	15		12		27
	41		20		31

8.         Deposit on grant of option

Group

	Unaudited 31 December 2014 £'000		Unaudited 31 December 2013 £'000		Audited 30 June 2014 £'000
Deposit on grant of option	-		5,169		-
	-		5,169		-

The Group received non-refundable payments for an option to dispose of its subsidiary, Asean Copper Investments Limited. The aggregate balance, net of transaction expenses, was recognised as deferred income.

On 21 January 2014, the Group received formal notification from Gold Fields Netherlands Services BV that it would not be exercising its exclusive option over Asean Copper Investments Limited which holds the Group's Mankayan copper-gold project in the Philippines.  The deferred income was therefore recognised in the Income Statement as Option Income in the year ended 30 June 2014.

9.         Share capital and options

Group

Class	Nominal value		Unaudited 31 December 2014 Number		Unaudited 31 December 2013 Number		Audited 30 June 2014 Number
Authorised
Ordinary	0.2p		5,000,000,000		5,000,000,000		5,000,000,000
Allotted, called up and fully paid
Ordinary	0.2p		82,939,525		82,939,525		82,939,525

Class	Nominal value		Unaudited 31 December 2014 £'000		Unaudited 31 December 2013 £'000		Audited 30 June 2014 £'000

Allotted, called up and fully paid
Ordinary	0.2p			166		166		166
Share premium account				31,053		31,053		31,053

Share options

Details of share options outstanding as at 31 December 2014 are as follows:

	Unaudited 31 December 2014 Number		Unaudited 31 December 2013 Number		Audited 30 June 2014 Number
Opening balance	3,641,892		3,641,892		3,641,892
Granted during the period	-		-		-
	3,641,892		3,641,892		3,641,892

10.        Other reserves

Group

(i) Share-based payment reserve	Unaudited 31 December 2014 £'000		Unaudited 31 December 2013 £'000		Audited 30 June 2014 £'000
Opening balance	265		265		265
Share-based payments - charge	-		-		-
Closing balance	265		265		265

(ii) Foreign currency reserve	Unaudited 31 December 2014 £'000		Unaudited 31 December 2013 £'000		Audited 30 June 2014 £'000
Opening balance	92		353		353
Movement in reserve	227		(206)		(261)
Closing balance	319		147		92

Other reserves	Unaudited 31 December 2014 £'000		Unaudited 31 December 2013 £'000		Audited 30 June 2014 £'000
(i) Share-based payment reserve	265		265		265
(ii) Foreign currency reserve	319		147		92
Total reserves	584		412		357

11.        Reconciliation of operating profit/(loss) to net cash outflow from operating activities

	Unaudited 31 December 2014 £'000		Unaudited 31 December 2013 £'000		Audited 30 June 2014 £'000
Group operating (loss)/profit	(237)		(710)		3,983
Depreciation	5		9		16
Foreign exchange loss/(gain)	(176)		237		303
VAT refunds received	(12)		(36)		(43)
Option income	-		-		(5,169)
(Increase)/decrease in trade and other receivables	(7)		(5)		11
Increase/(decrease) in trade and other payables	10		(119)		(108)
Net cash outflow from operating activities	(417)		(624)		(1,007)

12.        Commitments

The Company has committed to providing continued financial support to its associate in the Philippines and has indicated that it will not call upon its loan advances to that entity before 31 December 2015.

13.        Subsequent events

There has not arisen in the interval between the half year end date and the date of this report any item, transaction or event of a material or unusual nature likely, in the opinion of the directors of the Company, to effect:

(i)     The Company's operations in future financial periods; or

(ii)    The results of those operations in future financial periods; or

(iii)   The Company's state of affairs in future financial periods.

14.        Contingent liabilities

Litigation is ongoing against the Group relating to an historic alleged claim for a 40% interest in the Mankayan Project, as disclosed in June 2007 at the time of the Group's acquisition of Asean Copper Investments Limited.  The information usually required by IAS 37 is not disclosed, because the board of directors believe that to do so would seriously prejudice the outcome of the case. The board of directors are confident that the Group will successfully defend this claim.

15.        Availability of Interim Report

A copy of these interim results will be available from the Company's registered office during normal business hours on any weekday at Level 6, Quadrant House, 4 Thomas More Square, London E1W 1YW and can also be downloaded from the Company's website at www.bezantresources.com. Bezant Resources Plc is registered in England and Wales with company number 02918391.      

INDEPENDENT REVIEW REPORT BY THE AUDITORS

TO BEZANT RESOURCES PLC

Introduction

We have been engaged by the Company to review the condensed financial statements in the interim results for the six months ended 31 December 2014 which comprises the Group Statement of Comprehensive Income, the Group Statement of Changes in Equity, the Group Balance Sheet, the Group Statement of Cash Flows and the related notes.  We have read the other information contained in the interim results and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.

Directors' Responsibilities

The interim results are the responsibility of, and have been approved by, the directors. The directors are responsible for preparing the interim results in accordance with the AIM Rules for Companies.

As disclosed in note 1.1, the annual financial statements of the Group will be prepared in accordance with IFRSs as adopted by the European Union. The condensed set of financial statements included in the interim results has been prepared in accordance with International Accounting Standard 34, Interim Financial Reporting, as adopted by the European Union.

Our Responsibility

Our responsibility is to express to the Company a conclusion on the condensed set of financial statements in the interim results based on our review.

Scope of review

We conducted our review in accordance with the International Standard on Review Engagements (UK and Ireland) 2410, Review of Interim Financial Information Performed by the Independent Auditor of the Entity, issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the condensed financial statements in the interim results for the six months ended 31 December 2014 is not prepared, in all material respects, in accordance with International AccountingStandard 34 as adopted by the European Union and the AIM Rules for Companies.

UHY Hacker Young LLP

Chartered Accountants

Registered Auditors

London

27 March 2015

This information is provided by RNS

The company news service from the London Stock Exchange

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