REG-Anglesey Mining PLC: Annual Financial Report announcement <Origin Href="QuoteRef">AYM.L</Origin> - Part 2
26/07/2016 07:05
- Part 2: For the preceding part double click ID:nPRrQ1027a
recoverable.
company, is supported by the future cash flows associated with the recovery of the exploration and evaluation assets following the development of the Parys Mountain site held by Parys Mountain Mines Limited. If there were impairment in the exploration and
evaluation assets, this would have a direct impact on the carrying value of the investment in and loan due from the subsidiary, which may need to be written down in the company’s accounts.
The Audit Committee’s consideration of these risks is set out on page 18.
The audit procedures relating to the above mentioned matters were designed in
the context of our audit of the financial statements as a whole. Our opinion
on the financial statements is not modified with respect to any of these
risks, and we do not express an opinion on these individual risks.
Opinion on the financial statements
In our opinion:
* the financial statements give a true and fair view of the state of the
group’s and of the parent company’s affairs as at 31 March 2016 and of the
group’s loss for the year then ended;
* the group financial statements have been properly prepared in accordance
with IFRSs as adopted by the European Union;
* the parent company financial statements have been properly prepared in
accordance with IFRSs as adopted by the European Union and as applied in
accordance with the provisions of the Companies Act 2006; and
* the financial statements have been prepared in accordance with the
requirements of the Companies Act 2006 and, as regards the group financial
statements, Article 4 of the IAS Regulation.
Emphasis of matter – Going concern
In forming our opinion on the financial statements, which is not modified in
this regard, we have considered the adequacy of the disclosure made in note 2
to the financial statements concerning the Group’s ability to continue as a
going concern. The Group incurred a net cash outflow of £83,330 during the
year ended 31 March 2016 and, at that date it had net current liabilities of
£91,996. These conditions, along with the other matters explained in note 2
to the financial statements, indicate the existence of a material uncertainty
which may cast significant doubt about the company’s ability to continue as
a going concern. The financial statements do not include the adjustments that
would result if the company was unable to continue as a going concern.
Opinion on other matters prescribed by the Companies Act 2006
In our opinion:
* the part of the Directors’ Remuneration Report to be audited has been
properly prepared in accordance with the Companies Act 2006;
* the information given in the Strategic Report and the Directors’ Report
for the financial year for which the financial statements are prepared is
consistent with the financial statements; and
* the information given in the Corporate Governance Statement with respect to
internal control and risk management systems in relation to financial
reporting processes and about share capital is consistent with the financial
statements and rules 7.2.5 and 7.2.6 of the Disclosure and Transparency Rules.
Disclosures of principal risks
Based on the knowledge we acquired during our audit, we have nothing material
to add or draw attention to in relation to:
• the risks and uncertainties on page 6, concerning the principal risks,
their management, on page 16 and 18, and, based on that, the Directors’
assessment and expectations of the Group’s continuing in operation, on page
8; or
• the disclosures in note 2 of the Financial Statements concerning the use
of the going concern basis of accounting.
Matters on which we are required to report by exception
We have nothing to report in respect of the following:
Under the International Standards on Auditing (ISAs) (UK and Ireland), we are
required to report to you if, in our opinion, information in the annual report
is:
* materially inconsistent with the information in the audited financial
statements; or
* apparently materially incorrect based on, or materially inconsistent with,
our knowledge of the company acquired in the course of performing our audit;
or
* otherwise misleading.
In particular we are required to consider whether we have identified any
inconsistencies between our knowledge acquired during the audit and the
directors’ statement that they consider the annual report is fair, balanced
and understandable and whether the annual report discloses those matters that
we communicated to the audit committee which we consider should have been
disclosed.
Under the Companies Act 2006, we are required to report to you, if in our
opinion:
* adequate accounting records have not been kept, or returns adequate for our
audit have not been received from branches not visited by us; or
* the parent company financial statements and the part of the Directors’
Remuneration Report to be audited are not in agreement with the accounting
records and returns; or
* certain disclosures of directors’ remuneration specified by law are not
made; or
* we have not received all the information and explanations we require for our
audit; or
* a Corporate Governance Statement has not been prepared by the company.
Under the Listing Rules we are required to review:
* the directors’ statement, set out on page 8, in relation to going concern;
and
* the part of the Corporate Governance Statement relating to the company’s
compliance with the provisions of the UK Corporate Governance Code specified
for our review.
Robert Neate (Senior Statutory Auditor)
for and on behalf of Mazars LLP
Chartered Accountants and Statutory Auditor
Tower Bridge House, St. Katharine’s Way, London, E1W 1DD
Date: 25 July 2016
Group income statement
All attributable to equity holders of the company
Notes Year ended 31 March 2016 Year ended 31 March 2015
All operations are continuing £ £
Revenue - -
Expenses (112,279) (355,071)
Impairment of investment 14 - (1,231,218)
Exchange difference on investment impairment 14 - (26,766)
Investment income 6 335 882
Finance costs 7 (142,467) (119,863)
Foreign exchange loss (2,039) (4,574)
Loss before tax 4 (256,450) (1,736,610)
Taxation 8 - -
Loss for the period (256,450) (1,736,610)
Loss per share
Basic - pence per share 9 (0.2)p (1.1)p
Diluted - pence per share 9 (0.2)p (1.1)p
Group consolidated statement of comprehensive income
Loss for the period (256,450) (1,736,610)
Other comprehensive income
Items that may subsequently be reclassified to profit or loss:
Exchange difference on translation of foreign holding (7,294) (31,163)
Total comprehensive loss (263,744) (1,767,773)
for the period
Statement of financial position of the group
31 March 2016 31 March 2015
Notes £ £
Assets
Non-current assets
Mineral property exploration and evaluation 10 14,926,626 14,877,193
Property, plant and equipment 11 204,687 204,687
Investments 14 86,660 86,660
Deposit 15 123,078 122,806
15,341,051 15,291,346
Current assets
Other receivables 16 32,759 30,977
Cash and cash equivalents 17 11,504 96,873
44,263 127,850
Total assets 15,385,314 15,419,196
Liabilities
Current liabilities
Trade and other payables 18 (136,259) (121,557)
17
(136,259) (121,557)
Net current (liabilities)/assets (91,996) 6,293
Non-current liabilities
Loans 19 (3,097,662) (2,882,502)
Long term provision 20 (50,000) (50,000)
(3,147,662) (2,932,502)
Total liabilities (3,283,921) (3,054,059)
Net assets 12,101,393 12,365,137
Equity
Share capital 21 7,116,914 7,116,914
Share premium 9,848,949 9,848,949
Currency translation reserve (38,457) (31,163)
Retained losses (4,826,013) (4,569,563)
Total shareholders' equity 12,101,393 12,365,137
The financial statements of Anglesey Mining plc were approved by the board of
directors, authorised
for issue on 25 July 2016 and signed on its behalf by:
John F. Kearney, Chairman
Danesh Varma, Finance Director
Statement of financial position of the company
31 March 2016 31 March 2015
Notes £ £
Assets
Non-current assets
Investments 13 14,144,127 14,117,026
14,144,127 14,117,026
Current assets
Other receivables 16 15,433 13,945
Cash and cash equivalents 17 7,867 72,088
23,300 86,033
Total Assets 14,167,427 14,203,059
Liabilities
Current liabilities
Trade and other payables 18 (117,435) (102,660)
(117,435) (102,660)
Net current liabilities (94,135) (16,627)
Non-current liabilities
Loan 19 (2,852,201) (2,659,916)
(2,852,201) (2,659,916)
Total liabilities (2,969,636) (2,762,576)
Net assets 11,197,791 11,440,483
Equity
Share capital 21 7,116,914 7,116,914
Share premium 9,848,949 9,848,949
Retained losses (5,768,072) (5,525,380)
Shareholders' equity 11,197,791 11,440,483
The financial statements of Anglesey Mining plc registered number 1849957 were
approved by the
board of directors and authorised for issue on 25 July 2016, and signed on its
behalf by:
John F. Kearney, Chairman
Danesh Varma, Finance Director
Statements of changes in equity
All attributable to equity holders of the company.
Group Share Share Currency translation reserve Retained losses Total
capital premium
£ £ £ £ £
Equity at 1 April 2014 7,116,914 9,848,949 - (2,832,953) 14,132,910
Total comprehensive loss for the year:
Loss for the year - - - (1,736,610) (1,736,610)
Exchange difference on translation of foreign holding - - (31,163) - (31,163)
Total comprehensive loss for the year - - (31,163) (1,736,610) (1,767,773)
Equity at 31 March 2015 7,116,914 9,848,949 (31,163) (4,569,563) 12,365,137
Total comprehensive loss for the year:
Loss for the year - - - (256,450) (256,450)
Exchange difference on translation of foreign holding - - (7,294) - (7,294)
Total comprehensive loss for the year - - (7,294) (256,450) (263,744)
Equity at 31 March 2016 7,116,914 9,848,949 (38,457) (4,826,013) 12,101,393
Company Share Share Retained Total
capital premium losses
£ £ £ £
Equity at 1 April 2014 7,116,914 9,848,949 (5,212,341) 11,753,522
Total comprehensive loss for the year:
Loss for the year - - (313,039) (313,039)
Total comprehensive loss for the year - - (313,039) (313,039)
Equity at 31 March 2015 7,116,914 9,848,949 (5,525,380) 11,440,483
Total comprehensive loss for the year:
Loss for the year - - (242,692) (242,692)
Total comprehensive loss for the year - - (242,692) (242,692)
Equity at 31 March 2016 7,116,914 9,848,949 (5,768,072) 11,197,791
Statement of cash flows of the group
Notes Year ended 31 March 2016 Year ended 31 March 2015
£ £
Operating activities
Loss for the period (256,450) (1,736,610)
Adjustments for:
Investment income 6 (335) (882)
Finance costs 7 142,467 119,863
Impairment of investment 14 - 1,231,218
Exchange difference on investment impairment 14 - 26,766
Foreign exchange movement 2,039 4,574
Exchange difference on translation of foreign holding -
(112,279) (355,071)
Movements in working capital
Increase in receivables (1,782) (15,867)
Increase in payables 14,775 4,934
Net cash used in operating activities (99,286) (366,004)
Investing activities
Investment income 63 672
Mineral property exploration and evaluation (49,506) (69,888)
Investment - (74,940)
Net cash used in investing activities (49,443) (144,156)
Financing activities
Loans 65,399 322,510
Loan received -
Net cash generated from financing activities 65,399 322,510
Net decrease in cash (83,330) (187,650)
and cash equivalents
Cash and cash equivalents at start of year 96,873 289,097
Foreign exchange movement (2,039) (4,574)
Cash and cash equivalents at end of year 17 11,504 96,873
Statement of cash flows of the company
Notes Year ended 31 March 2016 Year ended 31 March 2014
£ £
Operating activities
Loss for the period 23 (242,692) (313,039)
Adjustments for:
Investment income - (477)
Finance costs 127,718 116,043
(114,974) (197,473)
Movements in working capital
Increase in receivables (1,488) (152)
Increase in payables 14,775 16,653
Net cash used in operating activities (101,687) (180,972)
Investing activities
Interest income - 477
Investments and long term loans (27,101) (139,462)
Net cash used in investing activities (27,101) (138,985)
Financing activities
Loan from Juno Limited 64,567 125,000
Net cash generated from financing activities 64,567 125,000
Net decrease in cash and cash equivalents (64,221) (194,957)
Cash and cash equivalents at start of period 72,088 267,045
Cash and cash equivalents at end of period 17 7,867 72,088
Notes to the financial statements
1 General information
Anglesey Mining plc is domiciled and incorporated in England and Wales under
the Companies Act. The nature of the group’s operations and its principal
activities are set out in note 3 and in the strategic report. The registered
office address is as shown on the rear cover.
These financial statements are presented in pounds sterling because that is
the currency of the primary economic environment in which the group has been
operating. Foreign operations are included in accordance with the policies set
out in note 2.
2 Significant accounting policies
Basis of Accounting
The group and company financial statements have been prepared in accordance
with International Financial Reporting Standards (IFRS) as adopted by the
European Union and therefore the group financial statements comply with
Article 4 of the EU IAS Regulation.
The financial statements have been prepared on the historical cost basis
except for the fair valuation of certain financial assets. The principal
accounting policies adopted are set out below.
Going concern
The financial statements are prepared on a going concern basis. The validity
of the going concern basis is dependent on finance being available for the
continuing working capital requirements of the group for the foreseeable
future, being a period of at least twelve months from the date of approval of
the accounts. The ongoing operations of the group are dependent on its ability
to raise adequate financing. The group relies on equity financing and support
from its shareholders to fund its working capital requirements. The group will
need to generate additional financial resources in order to meet its planned
business objectives and continue as a going concern. Additional financing will
be required in the short term to continue the development of the group’s
properties and in the longer term to put the Parys Mountain Mine into
production.
The directors recognise the continuing operations of the group are dependent
upon its ability to raise adequate financing. The directors have a reasonable
expectation that the required financing will be raised and are actively
pursuing various financing options with certain shareholders and financial
institutions regarding proposals for financing. The directors have reasonable
expectations that these financing discussions will be successful and therefore
the financial statements have been prepared on the going concern basis.
Basis of consolidation
The consolidated financial statements incorporate the financial statements of
the company and entities controlled by the company (its subsidiaries) made up
to 31 March each year. Control is achieved where the company has the power to
govern the financial and operating policies of an investee entity so as to
obtain benefits from its activities.
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 the income statement in the
period of acquisition. The results of subsidiaries acquired or disposed of
during the year are included in the group income statement from the effective
date of acquisition or up to the effective date of disposal, as appropriate.
Where necessary, adjustments are made to the financial statements of
subsidiaries to bring the accounting policies used into line with those used
by the group. All intra-group transactions, balances, income and expenses are
eliminated on consolidation.
Revenue recognition
Interest income is accrued on a time basis, by reference to the principal
outstanding and at the effective interest rate applicable, which is the rate
that exactly discounts estimated future cash receipts through the expected
life of the financial asset to that asset’s net carrying amount.
Foreign currencies
Transactions in currencies other than pounds sterling are recorded at the
rates of exchange prevailing on the dates of the transactions. At the end of
each reporting period, monetary assets and liabilities that are denominated in
foreign currencies are retranslated at the rates prevailing on the period end
date. Non-monetary assets and liabilities carried at fair value that are
denominated in foreign currencies are translated at the rates prevailing at
the date when the fair value was determined. Gains and losses arising on
retranslation are included in net profit or loss for the period.
On consolidation, the assets and liabilities of the group’s overseas
operations are translated at exchange rates prevailing on the period end date.
Exchange differences arising, if any, are classified as items of other
comprehensive income and transferred to the group’s translation reserve
within equity.
Such translation differences are reclassified to profit or loss, and
recognised as income or as expense, in the period in which there is a
disposition of the operation.
Segmental analysis
Operating segments are identified on the basis of internal reports about
components of the group that are regularly reviewed by the chief operating
decision-maker.
Retirement benefit costs
Payments to defined contribution retirement benefit schemes are charged as an
expense as they fall due. There are no defined benefit retirement schemes.
Equity-settled employee benefits
The group provides equity-settled benefits to certain employees.
Equity-settled employee benefits are measured at fair value at the date of
grant. The fair value determined at the grant date is expensed on a
straight-line basis over the vesting period, based on the group’s estimate
of shares that will eventually vest and adjusted for the effect of non-market
based vesting conditions.
Fair value is measured by use of a Black-Scholes model.
Taxation
Deferred tax is the tax expected to be payable or recoverable on differences
between the carrying amounts of assets and liabilities in the financial
statements and the corresponding tax bases used in the computation of taxable
profit, and is accounted for using the period end liability method. Deferred
tax liabilities are generally recognised for all taxable temporary differences
and deferred tax assets are recognised to the extent that it is probable that
taxable profits will be available against which deductible temporary
differences can be utilised. Such assets and liabilities are not recognised if
the temporary difference arises from goodwill or from the initial recognition
(other than in a business combination) of other assets and liabilities in a
transaction that affects neither the tax profit nor the accounting profit.
Deferred tax liabilities are recognised for taxable temporary differences
arising on investments in subsidiaries and associates, and interests in joint
ventures, except where the group is able to control the reversal of the
temporary difference and it is probable that the temporary difference will not
reverse in the foreseeable future.
The carrying amount of any deferred tax assets is reviewed at each period end
date and reduced to the extent that it is no longer probable that sufficient
taxable profits will be available to allow all or part of the asset to be
recovered.
Deferred tax is calculated at the tax rates that are expected to apply in the
period when the liability is settled or the asset is realised. Deferred tax is
charged or credited in the income statement, except when it relates to items
charged or credited directly to equity, in which case the deferred tax is also
dealt with in equity.
The charge for current tax is based on the results for the year as adjusted
for items which are non-taxable or disallowed. It is calculated using rates
that have been enacted or substantively enacted by the balance sheet date.
Property, plant and equipment
The group’s freehold land is stated in the statement of financial position
at cost. The directors consider that the residual value of buildings, based on
prices prevailing at the date of acquisition and at each subsequent reporting
date as if the asset were already of the age and in the condition expected at
the end of its useful life, is such that any depreciation would not be
material. The carrying value is reviewed annually to consider whether it
exceeds the recoverable value in which case any impairment in value would be
charged immediately to the income statement.
Plant and office equipment are stated in the statement of financial position
at cost, less depreciation. Depreciation is charged on a straight line basis
at the annual rate of 25%. Residual values and the useful lives of these
assets are also reviewed annually.
Intangible assets - mineral property exploration and evaluation costs
Intangible assets are stated in the statement of financial position at cost,
less accumulated amortisation and provisions for impairment.
Costs incurred prior to obtaining the legal rights to explore a mineral
property are expensed immediately to the income statement. Mineral property
exploration and evaluation costs are capitalised until the results of the
projects, which are usually based on geographical areas, are known; these
include an allocation of administrative and management costs as determined
appropriate to the project by management.
Where a project is successful, the related exploration costs are amortised
over the life of the estimated mineral reserve on a unit of production basis.
Where a project is terminated, the related exploration costs are expensed
immediately. Where no internally-generated intangible asset can be recognised,
development expenditure is recognised as an expense in the period in which it
is incurred.
Impairment of tangible and intangible assets
The values of mineral properties are reviewed annually for indications of
impairment and when these are present a review to determine whether there has
been any impairment is carried out. They are written down when any impairment
in their value has occurred and are written off when abandoned. Where a
provision is made or reversed it is dealt with in the income statement in the
period in which it arises.
Investments
Investments in subsidiaries are shown at cost less provisions for impairment
in value. Income from investments in subsidiaries together with any related
withholding tax is recognised in the income statement in the period to which
it relates.
Investments which are not subsidiaries are shown at cost unless there is a
practical method of determining a reliable fair value, in which case that fair
value is used.
Provisions
Provisions are recognised when the group has a present obligation as a result
of a past event and it is probable that the group will be required to settle
that obligation. Provisions are measured at the directors’ best estimate of
the expenditure required to settle that obligation at the end of the reporting
period and are discounted to present value where the effect is material.
Financial instruments
Financial assets and liabilities are initially recognised and subsequently
measured based on their classification as “loans and receivables”,
“available for sale financial assets” or “other financial
liabilities”.
Loans and receivables are non-derivative financial assets with fixed or
determinable payments that are not quoted in an active market. They are
included in current assets, except where they mature more than 12 months after
the period end date: these are classified as non-current assets.
(a) Trade and other receivables. Trade and other receivables are measured at
initial recognition at fair value and are subsequently measured at amortised
cost using the effective interest rate method. Appropriate allowances for
estimated irrecoverable amounts are recognised in the income statement when
there is objective evidence that the asset is impaired.
(b) Cash and cash equivalents. The group considers all highly liquid
investments which are readily convertible into known amounts of cash and have
a maturity of three months or less when acquired to be cash equivalents. The
management believes that the carrying amount of cash equivalents approximates
fair value because of the short maturity of these financial instruments.
(c) Available for sale financial assets. Unlisted shares held by the
group that are classified as being AFS are stated at cost on the basis that
the shares are not quoted and a reliable fair value is not able to be
estimated.
Dividends on AFS equity instruments are recognised in profit or loss when the
group’s right to receive the dividends is established.
The fair value of AFS monetary assets denominated in a foreign currency is
determined in that foreign currency and translated at the spot rate at the
balance sheet date. The foreign exchange gains and losses that are recognised
in profit or loss are determined based on amortised cost of the monetary
asset. Other foreign exchange gains and losses are recognised in other
comprehensive income.
(d) Trade and other payables. Trade payables are not interest bearing and
are initially recognised at fair value and subsequently measured at amortised
cost using the effective interest rate method.
(e) Deposits. Deposits are recognised at fair value on initial recognition
and are subsequently measured at amortised cost using the effective interest
rate method.
(f) Loans. Loans are recognised at fair value on initial recognition and are
subsequently measured at amortised cost using the effective interest rate
method.
Equity instruments
Equity instruments issued by the company are recorded at the proceeds
received, net of direct issue costs.
Leases
Leases are classified as finance leases whenever the terms of the lease
transfer substantially all the risks and rewards of ownership to the lessee.
All other leases are classified as operating leases.
Mining lease payments are recognised as an operating expense in the income
statement on a straight line basis over the lease term unless they relate to
mineral property exploration and evaluation in which case they are
capitalised. There are no finance leases or other operating leases.
New accounting standards
There are no new accounting standards and interpretations that the group and
company has adopted in the year.
The group and company have adopted the amendments to the following accounting
standards interpretation:
Annual Improvements 2010 - 2012 cycle amendments to IFRS2, IFRS3, IFRS8 IAS
16, IAS24 and IAS38.
Annual Improvements 2011 - 2013 cycle amendments to IFRS3, IFRS13 and IAS40.
There has been no impact of adopting the amendments.
The group and the company have not applied the following IFRS, IAS and IFRICs
that are applicable and have been issued but are not yet effective:
* IAS 1 Presentation of Financial Information: Amendment relates to the
disclosure initiative; Effective – Annual periods beginning on or after 1
January 2016
* IAS16 Property, plant and equipment and IAS 38 Intangible Assets:
Amendments regarding the clarification of acceptable methods of depreciation
and amortisation; Amended May 2014; Effective for Annual periods beginning on
or after 1 January 2016
* IAS 27 Separate Financial Statements (as amended in 2011): Original issue;
Issued – May 2011; Effective – Annual periods beginning on or after 1
January 2016
* IFRS 11 Joint Arrangements: Amendment relating to the accounting for
acquisition of interests in joint operations; Effective – Annual periods
beginning on or after 1 January 2016
* IAS 12: Income taxes: Amendment relating to recognition of deferred tax
assets on unrealised losses; Effective – Annual periods beginning on or
after 1 January 2017
* IAS 7: Statement of cash flows: Amendment relating to the disclosure
initiative; Effective – Annual periods beginning on or after 1 January 2017
* IFRS 15 Revenue from contracts with customers: Original issue; Issued –
May 2014; Effective – Annual periods beginning on or after 1 January 2018
* IFRS 9 Financial Instruments; Original issue; Issued – November 2009;
Effective – Annual periods beginning on or after 1 January 2018
* IFRS 16 Leases: Original issue, Issued - January 2016; effective – Annual
periods beginning on or after 1 January 2019
The directors expect that the adoption of the above pronouncements (with the
possible exceptions of IFRS9, IFRS15 and IFRS16) will have no material impact
to the financial statements in the period of initial application other than
disclosure. IFRS 9 is still ongoing and yet to be adopted by the EU. The
directors have not yet assessed the full impact of IFRS15 and IFRS16 on these
financial statements.
The directors do not consider the adoption of the amendments resulting from
the Annual Improvements 2012 - 2014 cycle will result in a material impact on
the financial information of the group and company. These amendments to IFRS
5, IFRS 7, IAS 19 and IAS 34 are effective for accounting periods beginning on
or after 1 January 2016.
There have been no other new or revised International Financial Reporting
Standards, International Accounting Standards or Interpretations that are in
effect since that last annual report that have a material impact on the
financial statements.
Judgements made in applying accounting policies and key sources of estimation
uncertainty
The following critical judgements have been made in the process of applying
the group’s accounting policies:
(a) In determining the treatment of exploration, evaluation and development
expenditures the directors are required to make estimates and assumptions as
to future events and circumstances. There are uncertainties inherent in making
such assumptions, especially with regard to: ore resources and the life of a
mine; recovery rates; production costs; commodity prices and exchange rates.
Assumptions that are valid at the time of estimation may change significantly
as new information becomes available and changes in these assumptions may
alter the economic status of a mining unit and result in resources or reserves
being restated. Operation of a mine and the receipt of cashflows from it are
dependent on finance being available to fund the development of the property.
(b) In connection with possible impairment of assets the directors assess each
potentially cash generating unit annually to determine whether any indication
of impairment exists. The judgements made when doing so are similar to those
set out above and are subject to the same uncertainties.
Nature and purpose of equity reserves
The share premium reserve represents the consideration that has been received
in excess of the nominal value of shares on issue of new ordinary share
capital, less any direct costs of issue. The currency translation reserve
represents the variations on revaluation of overseas foreign subsidiaries and
associates. The retained earnings reserve represents profits and losses
retained in previous and the current period.
3 Segmental information
The group is engaged in the business of exploring and evaluating the
wholly-owned Parys Mountain project in North Wales, managing its interest in
the Grangesberg properties and has an investment in the Labrador iron project
in eastern Canada. In the opinion of the directors, the group’s activities
comprise one class of business which is mine exploration, evaluation and
development. The group reports geographical segments; these are the basis on
which information is reported to the board. As yet there have been no site
expenses incurred in respect of the group’s interest in Grangesberg.
Income statement analysis
2016 2015
UK Sweden Canada Total UK Sweden Canada Total
£ £ £ £ £ £ £ £
Expenses (108,606) (3,673) - (112,279) (187,815) (167,256) - (355,071)
Impairment of investment - - - - - - (1,231,218) (1,231,218)
Exchange difference on above - - - - - - (26,766) (26,766)
Investment income 335 - - 335 882 - - 882
Finance costs (142,467) - - (142,467) (119,863) - - (119,863)
Exchange rate loss (1,976) (63) - (2,039) (4,574) - - (4,574)
Loss for the year (252,714) (3,736) - (256,450) (311,370) (167,256) (1,257,984) (1,736,610)
Assets and liabilities
31 March 2016 31 March 2015
UK Sweden Canada Total UK Sweden Canada Total
£ £ £ £ £ £ £ £
Non-current assets 15,254,391 86,659 1 15,341,051 15,204,686 86,659 1 15,291,346
Current assets 43,069 1,194 - 44,263 123,364 4,486 - 127,850
Liabilities (3,038,460) (245,461) - (3,283,921) (2,831,473) (222,586) - (3,054,059)
Net assets/liabilities 12,259,000 (157,608) 1 12,101,393 12,496,577 (131,441) 1 12,365,137
4 Operating result
The loss before taxation for the year has been arrived at after charging:
2016 2015
£ £
Fees payable to the group's auditor:
for the audit of the annual accounts 22,000 22,000
for the audit of subsidiaries' accounts 3,000 3,000
for other services - taxation compliance 2,000 2,500
for other services 800 800
Directors' remuneration - 24,750
Foreign exchange loss 2,039 4,574
5 Staff costs
The average monthly number of persons employed (including executive directors) was:
2016 2015
Administrative 3 3
3 3
Their aggregate remuneration was: £ £
Wages and salaries 9,205 33,985
Social security costs 990 2,118
Other pension costs - -
- More to follow, for following part double click ID:nPRrQ1027cRecent news on Anglesey Mining
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