Report Publication Announcement • Nov 24, 2015
Report Publication Announcement
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RNS Number : 8001G
GCM Resources PLC
24 November 2015
24 November 2015
GCM Resources plc
("GCM" or the "Company")
(AIM:GCM)
Preliminary Results for the year ended 30 June 2015
GCM Resources plc (AIM:GCM), a resource exploration and development company, is pleased to report its preliminary results for the year ended 30 June 2015.
The Annual Report and Accounts for the year ended 30 June 2015 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 Michael Tang, Executive Chairman, stated:
The last twelve months have been challenging for the junior mining sector as commodity markets continue to deteriorate and raising new funding has become particularly difficult for any mining company that is not producing.
In contrast to the decline in global demand for coal, Bangladesh, where GCM's operations are located, is expected to see a significant increase in demand for high quality thermal coal in-country as the Government continues to restructure the country's power sector towards coal. The Bangladesh Government plans to generate over 19,000MW from coal by 2030, and is currently considering coal-fired power plants with a combined generation capacity of 13,316MW. While the current plans assume coal is imported there is a strong case for the country to use its own indigenous resources.
The Company agreed a two year, £3 million convertible loan facility on 29 May 2015 which may be drawn down as and when required and will assist in financially supporting GCM's activities as it continues to pursue approval of the Phulbari Coal Project (the Project). As at 30 June 2015 GCM had drawn down £0.2 million from the convertible loan facility (£0.51 million as at 19 November 2015). While achieving approval continues to be a challenge, the Board believes that it is in the best interests of all stakeholders that the Project is developed. To this end the Board's strategy is to present the Project to the satisfaction of the Government of Bangladesh and to secure an agreement that meets the objectives of both parties.
Understanding the importance of local community support the Company has continued its engagement activities throughout the year, retaining a working relationship with community leaders and understanding the views of local residents from a diverse range of backgrounds. The Company has met around 2,500 people since it first started its re-engagement activities in late 2012.
Finally, we saw the successful closure of the OECD examination on 10 September 2015 after a thorough and impartial examination which first started in December 2012. I reiterate our commitment that the Project developed by GCM will be undertaken with integrity and fairness for all stakeholders, and in adherence to the highest international and national environmental and social standards. The Project can be a catalyst for economic growth and social development both within the region and throughout the country and I look forward to making progress towards its implementation for the benefit of all stakeholders.
Our financial results reflect our focus on keeping costs under control while pursing Project approval. The Group incurred a loss of £0.9 million for the year ended 30 June 2015 compared to £1.3 million last financial year and £3.2 million in 2013. Project related expenditure of £0.6 million for the year was also kept at a minimum (2014: £0.8 million).
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 continued perseverance and support during these challenging times.
The Income Statement, Statement of Comprehensive Income, Statement of Changes in Equity, Balance Sheet and Cash Flow are presented on the following pages.
| 2015 | 2014 | ||
| £000 | £000 | ||
| Operating expenses | |||
| Exploration and evaluation costs | (75) | (109) | |
| Share based payments | (177) | (570) | |
| Administrative expenses | (688) | (633) | |
| Operating loss | (940) | (1,312) | |
| Finance revenue | 4 | 10 | |
| Finance costs | (1) | - | |
| Loss before tax | (937) | (1,302) | |
| Taxation | - | - | |
| Loss and total comprehensive income for the year | (937) | (1,302) | |
| Loss per share | |||
| Basic (pence per share) | (1.5p) | (2.2p) | |
| Diluted (pence per share) | (1.5p) | (2.2p) |
Consolidated Statement of Changes in Equity
| 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 2013 | 5,115 | 44,258 | 588 | - | (13,088) | 36,873 |
| Total comprehensive loss | - | - | - | - | (1,302) | (1,302) |
| Shares issued during the year | 1,171 | 1,148 | - | - | - | 2,319 |
| Share issue transaction costs | - | (120) | - | - | - | (120) |
| Share based payments | - | - | (3) | - | 570 | 567 |
| Balance at 30 June 2014 | 6,286 | 45,286 | 585 | - | (13,820) | 38,337 |
| Total comprehensive loss | - | - | - | - | (937) | (937) |
| Drawdown of convertible loan | - | - | - | 40 | - | 40 |
| Share based payments | - | - | 13 | - | 177 | 190 |
| Balance at 30 June 2015 | 6,286 | 45,286 | 598 | 40 | (14,580) | 37,630 |
| 2015 | 2014 | ||
| £000 | £000 | ||
| Current assets | |||
| Cash and cash equivalents | 169 | 1,332 | |
| Receivables | 213 | 64 | |
| Total current assets | 382 | 1,396 | |
| Non-current assets | |||
| Property, plant and equipment | 32 | 35 | |
| Intangible assets | 37,732 | 37,153 | |
| Receivables | 60 | - | |
| Total non-current assets | 37,824 | 37,188 | |
| Total assets | 38,206 | 38,584 | |
| Current liabilities | |||
| Payables | (424) | (247) | |
| Total current liabilities | (424) | (247) | |
| Non-current liabilities | |||
| Borrowings | (152) | - | |
| Total non-current liabilities | (152) | - | |
| Total liabilities | (576) | (247) | |
| Net assets | 37,630 | 38,337 | |
| Equity | |||
| Share capital | 6,286 | 6,286 | |
| Share premium account | 45,286 | 45,286 | |
| Other reserves | 638 | 585 | |
| Accumulated losses | (14,580) | (13,820) | |
| Total equity | 37,630 | 38,337 |
| 2015 | 2014 | ||
| £000 | £000 | ||
| Cash flows from/(used in) operating activities | |||
| (Loss) before tax | (937) | (1,302) | |
| Adjusted for: | |||
| Finance costs | 1 | - | |
| Finance revenue | (4) | (10) | |
| Share based payments | 177 | 570 | |
| Other non-cash expenses | - | 5 | |
| (763) | (737) | ||
| Movements in working capital: | |||
| (Increase)/decrease in operating receivables | (68) | 114 | |
| Increase/(decrease) in operating payables | 15 | (111) | |
| Cash used in operations | (816) | (734) | |
| Interest received | 4 | 10 | |
| Net cash used in operating activities | (812) | (724) | |
| Cash flows from/(used in) investing activities | |||
| Payments for property, plant and equipment | - | (1) | |
| Payments for intangible assets | (551) | (849) | |
| Net cash generated from/(used in) investing activities | (551) | (850) | |
| Cash flows from/(used in) financing activities | |||
| Proceeds from convertible loan | 200 | - | |
| Issue of ordinary share capital | - | 2,319 | |
| Costs on issue of ordinary share capital | - | (120) | |
| Net cash from financing activities | 200 | 2,199 | |
| Total increase in cash and cash equivalents | (1,163) | 625 | |
| Cash and cash equivalents at the start of the year | 1,332 | 707 | |
| Cash and cash equivalents at the end of the year | 169 | 1,332 |
The audited financial information for the years ended 30 June 2015 and 30 June 2014 contained in this document do 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 2014. 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 2015 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 2015. 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 24 November 2015.
For further information:
| GCM Resources plc James Hobson CFO & Company Secretary +44 (0) 20 7290 1630 |
Bell Pottinger Public Relations Lorna Cobbett +44 (0) 20 3772 2500 |
| ZAI Corporate Finance Ltd Nominated Adviser and Broker Tom Price +44 (0) 20 7060 2220 |
| GCM Resources plc | |
| Tel: +44 (0) 20 7290 1630 | |
| [email protected]; www.gcmplc.com |
This information is provided by RNS
The company news service from the London Stock Exchange
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