PEMBRIDGE RESOURCES PLC — Audit Report / Information 2019

Jun 29, 2020

National Storage Mechanism | Additional information

RNS Number : 2930R

Pembridge Resources plc

29 June 2020

29 June 2020

Financial Statements Released

London, United Kingdom - Pembridge Resources plc (LSE: PERE) ("Pembridge" or the "Company") is pleased to release its annual report and consolidated financial statements for the year ended 31st December 2019.

On 26 June 2020 the Board of Directors of the Company approved the Annual Report and Consolidated Financial Statements for the year ended 31 December 2019. During the year the Group made a loss of US$13,087,000 (2018 - loss of US$3,829,000).  The operating loss of $11,818,000 (2018: $3,829,000) comprised exceptional expenses from the Minto acquisition of $2,347,000 (2018: nil), administrative costs of the Company of $3,049,000 (2018: $3,829,000) and the loss post-acquisition from Minto of $6,422,000 (2018: nil) which reflect the costs of re-starting operations during the period. 

The financial statements are available in pdf form on the Company's website using the link below.

https://www.pembridgeresources.com/investors/financial-reports-and-presentations

Extracts from the consolidated financial statements follow.

Gati Al-Jebouri, Chief Executive Officer and Chairman of the Board of Pembridge said:

"The financial results for 2019 reflect the investment made and costs incurred to acquire and restart the Minto mine.  Having achieved this successfully, I am pleased that we are in a position to face the challenges in front of us as well as grow the business.  Although showing a loss for 2019, it is encouraging to be able to show the Company generating revenues from operations in the Consolidated Financial Statements.  I look forward to having the shareholders consider and approve the Annual Report and Consolidated Financial Statements at an EGM, which is to be called in the near future."

ENDS

NOTES TO EDITORS

About Pembridge Resources plc

Pembridge is a mining company that is listed on the standard segment of the Official List of the FCA and trading on the main market for listed securities of London Stock Exchange plc. Pembridge has an investment in Minto Explorations Ltd, a British Columbia incorporated business operating the Minto mine in Yukon, Canada.

Enquiries:

Pembridge Resources plc:                                                              +44 (0)20 7917 2968

Gati Al-Jebouri, Chief Executive Officer and Chairman of the Board

David James, Chief Financial Officer

Brandon Hill Capital - United Kingdom:                                       +44 (0)20 3463 5016

Jonathan Evans

Consolidated statement of comprehensive income

							Year ended					Year ended
							31 December 2019					31 December 2018
							US$'000					US$'000
Revenue from contracts with customers							12,398					-
Production costs							(14,739)					-
Royalties							(204)					-
Depreciation and amortisation							(3,459)					-
Administrative, legal and professional expenses							(3,110)					(3,829)
Exceptional items - acquisition and re-admission costs									(2,347)			-
Foreign exchange gain / (loss)							(357)					-
Operating loss							(11,818)					(3,829)
Finance income							-					-
Finance cost							(1,295)					-
Loss before income tax							(13,113)					(3,829)
Income tax							26					-
Loss for the year							(13,087)					(3,829)
Other comprehensive income							936					-
Total comprehensive income for the year							(12,151)					(3,829)
Loss is attributable to:
Non-controlling interest							(5,024)					-
Shareholders of the Company							(8,063)					(3,829)
Loss for the year							(13,087)					(3,829)
Total comprehensive income is attributable to:
Non-controlling interest							(4,400)					-
Shareholders of the Company							(7,751)					(3,829)
Total comprehensive income for the year							(12,151)					(3,829)
							Year ended					Year ended
Earnings per share expressed in US cents							31 December 2019					31 December 2018
Basic and diluted loss per share attributable to the equity holders of the Company							(33.5c)					(17.1c)

All amounts relate to continuing activities.

Consolidated statement of financial position

					31 December 2019		31 December 2018
					US$'000		US$'000
Assets
Non-current assets
Property, plant and equipment					50,207		15
Intangible assets					394		148
Long-term deposits					4,040		-
Total non-current assets					54,641		163
Current assets
Inventories					5,710		-
Trade and other receivables					8,610		240
Cash and cash equivalents					964		151
Total current assets					15,284		391
Total assets					69,925		554
Non-Current liabilities
Borrowings					(10,631)		(103)
Lease liabilities					(2,734)		-
Reclamation and closure cost provision					(22,438)		-
Deferred consideration due to Capstone					(4,305)		-
Deferred tax liabilities					(270)		-
Total non-current liabilities					(40,378)		(103)
Current liabilities
Trade and other payables					(8,736)		(1,831)
Borrowings					-		(279)
Lease liabilities					(2,899)		-
Deferred consideration due to Capstone					(4,897)		-
Total current liabilities					(16,532)		(2,110)
Total liabilities					(56,910)		(2,213)
Net assets/(liabilities)					13,015		(1,659)
Equity
Share capital					825		295
Share premium					8,900		2,902
Capital redemption reserve					1,011		1,011
Translation reserve					312		-
Other reserve					369		66
Retained deficit					(13,465)		(5,933)
Equity attributable to shareholders of the Company					(2,048)		(1,659)
Non-controlling interests					15,063		-
Total equity					13,015		(1,659)

Consolidated statement of changes in equity

	Share capital		Share premium	Capital redemption reserve	Translation / Other reserve	Retained deficit	Total	Non-controlling interest	Total Equity
	US$'000		US$'000	US$'000	US$'000	US$'000	US$'000	US$'000	US$'000
Balance at 1 January 2018	1,306		2,902	-	165	(2,203)	2,170	-	2,170
Loss for the year	-		-	-	-	(3,829)	-	-	(3,829)
Other comprehensive income for the year	-		-	-	-	-	-	-	-
Total comprehensive income for the year	-		-	-	-	(3,829)	(3,829)	-	(3,829)
Cancellation of deferred shares	(1,011)		-	1,011	-	-	-	-	-
Warrants expired	-		-	-	(99)	99	-	-	-
Total transactions with owners recognised directly in equity	(1,011)		-	1,011	(99)	99	-	-	-
Balance at 31 December 2018	295		2,902	1,011	66	(5,933)	(1,659)	-	(1,659)
Balance at 1 January 2019	295		2,902	1,011	66	(5,933)	(1,659)	-	(1,659)
Loss for the year	-		-	-	-	(8,063)	(8,063)	(5,024)	(13,087)
Other comprehensive income - items that may be reclassified subsequently to profit or loss
Exchange difference on translation	-		-	-	312	-	312	624	936
Total comprehensive income for the year	-		-	-	312	(8,063)	(7,751)	(4,400)	(12,151)
Proceeds from shares issued	530		6,109	-	-	-	6,639	-	6,639
Direct cost of shares issued	-		(111)	-	-	-	(111)	-	(111)
Equity element of convertible loan	-		-	-	53	-	53	-	53
Investment by non-controlling interest in Minto share capital						531	531	1,059	1,590
Non-controlling interest on acquisition of subsidiary						-	-	18,404	18,404
Share-based payments	-		-	-	250	-	250	-	250
Total transactions with owners recognised directly in equity	530		5,998	-	303	531	7,362	19,463	26,825
Balance at 31 December 2019	825		8,900	1,011	681	(13,465)	(2,048)	15,063	13,015

The following describes the nature and purpose of each reserve within Group and Company owners' equity:

Reserve	Description and purpose
Share capital	Nominal value of shares issued.
Share premium	Amount subscribed for share capital in excess of nominal value, less share issue costs.
Capital redemption reserve	Reserve created on cancellation of deferred shares.
Other reserve	Cumulative fair value of warrants and share options granted, together with the equity element of the convertible loan.
Translation reserve	Cumulative translation adjustment from retranslation of group undertakings with functional currencies other than USD.
Retained deficit	Cumulative net gains and losses recognised in the statement of comprehensive income.
Non-controlling interest	Non-controlling interests represent the portion of the equity of a subsidiary not attributable either directly or indirectly to the parent company and are presented separately in the Consolidated Statement of comprehensive income and within equity in the Consolidated statement of financial position, distinguished from parent company shareholders' equity.

Consolidated cash flow statement

	Year ended		Year ended
	31 December 2019		31 December 2018
	US$'000		US$'000
Cash flows from operating activities
Loss for the year	(13,087)		(3,829)
Adjusted for:
Net finance costs	1,295		-
Unrealised FX on debt included in administrative expenses	(169)		-
Depreciation	3,459		5
Tax charge / (credit)	(26)		-
Share based payments	250		-
	(8,278)		(3,824)
Movements in working capital
Decrease / (increase) in inventories	(3,248)		-
Decrease / (increase) in trade and other receivables	(8,252)		(344)
Increase / (decrease) in trade and other payables	6,752		1,928
Cash used by operations	(13,026)		(2,240)
Income taxes recovered / (paid)	-		-
Net cash used in operating activities	(13,026)		(2,240)
Cash flows from investing activities
Payments into long-term deposits	(1,582)		-
Purchase of property, plant and equipment	(490)		(18)
Purchase of mining claims	(237)		-
Net cash used in investing activities	(2,309)		(18)
Cash flows from financing activities
Interest payments	(497)		-
Repayment of borrowings	(647)		-
Proceeds from borrowings	10,754		382
Lease payments	(1,621)		-
Proceeds from issuance of shares	8,149		-
Net cash generated from financing activities	12,974		382
Net increase in cash and cash equivalents	803		(1,876)
Cash and cash equivalents at beginning of year	151		2,027
Impact of exchange rates on cash balances	10		-
Cash and cash equivalents at end of year	964		151

BASIS OF PREPARATION

The Group's Financial Statements are presented in United States dollars (US$), which is also the functional currency of the Company, and rounded to the nearest thousand.

The Financial Statements from which these extracts are taken have been prepared in accordance with International Financial Reporting Standards (IFRSs) and IFRIC interpretations (IFRS IC) as adopted by the European Union, and with the Companies Act 2006 applicable to companies reporting under IFRS. The Financial Statements have been prepared under the historical cost convention, except as modified for assets and liabilities recognised at fair value on a business combination and contingent consideration measured at fair value.

Going concern

The Financial Statements from which these extracts are taken have been prepared on a going concern basis. In assessing whether the going concern assumption is appropriate, the Directors have taken into account all relevant available information about the current and future position of the Group and Company, including the current and future level of resources. As part of their assessment, the Directors have also taken into account the need for the Company to raise additional funding during the going concern period. Further funding will be required by the Company either through equity raisings or other financial arrangements and this additional funding is not guaranteed, however to date the Company has been successful in securing funding when required.

The Company has no income stream of its own and is reliant, until it is able to receive an income from its investment in Minto, on funding from equity and loans. The company is in the process of obtaining such funding and its management are confident that it can meet its contracted and committed expenditure for at least the next 12 months.  Minto has received commitments from its other investors, Cedro Holdings and Copper Holdings, they will support its operations for at least the next 12 months.  The need for the Company to raise additional funds at the required amount during the going concern period indicates that a material uncertainty exists which may cast significant doubt on the Company's ability to continue as a going concern, and therefore its ability to settle its debts and realise its assets in the normal course of business.

At present the Group believes that there should be no significant material disruption to its mining operations from COVID-19, but the Board continues to monitor these risks and Minto's business continuity plans.

Having prepared forecasts based on current resources, assessing methods of obtaining additional finance and assessing the possible impact of COVID-19, the Directors believe the Group and Company have sufficient resources to meet its obligations for a period of 12 months from the date of approval of these Financial Statements. Taking these matters into consideration, the Directors continue to adopt the going concern basis of accounting in preparing these Financial Statements. The Financial Statements do not include the adjustments that would be required should the going concern basis of preparation no longer be appropriate.

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