REG - Horizonte Minerals - Final Results <Origin Href="QuoteRef">HZM.L</Origin> - Part 3

Horizonte MineralsAnnouncement

17/03/2017 07:07

- Part 3: For the preceding part double click  ID:nRSQ7459Zb 

contingent consideration during 2015. 
 
d)   Retained losses 
 
The net impact on retained losses at 1 January 2015 of the above adjustments
is £2,506,533. 
 
e)   Intangible assets 
 
An increase in carrying value of intangible exploration and evaluation assets
as at 1 January 2015 of £305,253. 
 
22 Ultimate controlling party 
 
The Directors believe there to be no ultimate controlling party. 
 
23 Directors' remuneration (including Key Management) 
 
                                                                                                          
                          Aggregate   Social Security  Other       Share based payment  Pension           
                          emoluments  charges          emoluments  charge               costs    Total    
 Group 2016               £           £                £           £                    £        £        
 Non-Executive Directors                                                                                  
 Alexander Christopher    -           -                -           -                    -        -        
 David Hall               29,000      3,312            -           24,520               -        56,832   
 William Fisher           29,000      -                -           24,520               -        53,520   
 Allan Walker             29,000      4,002            -           24,520               -        57,522   
 Owen Bavinton            -           -                -           24,520               32,167   56,687   
 Executive Directors                                                                                      
 Jeremy Martin            170,000     31,326           59,236      67,430               17,000   344,992  
 Key Management                                                                                           
 Jeffrey Karoly           128,000     13,524           9,600       61,300               15,553   227,977  
 Simon Retter             15,541      2,145            8,000       -                    -        25,686   
                          400,541     54,309           76,836      165,510              64,720   823,216  
 
 
                                                                                                          
                          Aggregate   Social Security  Other       Share based payment  Pension           
                          emoluments  charges          emoluments  charge               costs    Total    
 Group 2015               £           £                £           £                    £        £        
 Non-Executive Directors                                                                                  
 Alexander Christopher    -           -                -           -                    -        -        
 David Hall               33,600      -                -           4,128                -        37,728   
 William Fisher           24,000      -                -           4,128                -        28,128   
 Allan Walker             24,000      3,312            -           4,128                -        31,440   
 Owen Bavinton            25,608      3,534            -           4,128                -        33,270   
 Executive Directors                                                                                      
 Jeremy Martin            149,000     20,562           1,950       11,353               39,104   221,969  
 Key Management                                                                                           
 Jeffrey Karoly           99,000      12,672           -           10,321               48,656   170,649  
                          355,208     40,080           1,950       38,188               87,760   523,184  
 
 
The Company does not operate a pension scheme. Pension costs comprise
contributions to Defined Contribution pension plans held by the relevant
Director or Key Management. 
 
24 Employee benefit expense (including Directors and Key Management) 
 
                                                                     Group                 Company             
                                                                     2016       2015       2016       2015     
 Group                                                               £          £          £          £        
 Wages and salaries                                                  809,954    844,343    627,155    524,501  
 Social security costs                                               134,096    198,064    49,463     47,611   
 Indemnity for loss of office                                        50,519     55,216     30,000     -        
 Share options granted to Directors and employees (note 17)          324,890    100,248    324,890    100,248  
                                                                     1,319,459  1,197,871  1,031,508  672,360  
 Management                                                          6          6          6          6        
 Field staff                                                         12         26         -          -        
 Average number of employees including Directors and Key Management  18         32         6          6        
 
 
Employee benefit expenses includes £393,712 (2015: £586,348 ) of costs
capitalised and included within intangible non-current assets. 
 
Share options granted include costs of £165,510 (2015: £81,883 ) relating to
Directors. 
 
25 Investment in subsidiaries 
 
                               2016        2015 (Restated)  
 Company                       £           £                
 Shares in Group undertakings  2,348,042   2,348,042        
 Loans to Group undertakings   41,332,305  37,944,114       
                               43,670,347  40,292,156       
 
 
Investments in Group undertakings are stated at cost. The loans to Group
undertakings are repayable on demand and currently carry interest at 6%,
however there is currently no expectation of repayment within the next twelve
months and therefore loans are treated as non-current. 
 
On 23 March 2006 the Company acquired the entire issued share capital of
Horizonte Exploration Limited by means of a share for share exchange; the
consideration for the acquisition was 21,841,000 ordinary shares of 1 penny
each, issued at a premium of 9 pence per share. The difference between the
total consideration and the assets acquired has been credited to other
reserves. 
 
26 Commitments 
 
Operating lease commitments 
 
The Group leases office premises under cancellable and non-cancellable
operating lease agreements. The cancellable lease terms are up to one year and
are renewable at the end of the lease period at market rate. The leases can be
cancelled by payment of up to one month's rental as a cancellation fee. The
lease payments charged to profit or loss during the year are disclosed in note
6. 
 
The future aggregate minimum lease payments under non-cancellable operating
leases are as follows: 
 
                          2016    2015    
 Group                    £       £       
 Not later than one year  11,996  46,596  
 Total                    11,996  46,596  
 
 
Capital Commitments 
 
Capital expenditure contracted for at the end of the reporting period but not
yet incurred is as follows: 
 
                    2016  2015    
 Group              £     £       
 Intangible assets  -     42,100  
 
 
Capital commitments relate to contractual commitments for metallurgical,
economic and environmental evaluations by third parties. Once incurred these
costs will be capitalised as intangible exploration asset additions. 
 
27 Contingent Liabilities 
 
(a)  Glencore Araguaia Project 
 
The SdT deposit area concessions are subject to on-going litigation with a
Brazilian third party.  Glencore has disputed these claims.  The parties have
agreed certain protections including the receipt by HZM from Glencore of
certain indemnities in respect of such litigation. 
 
The Asset Purchase Agreement contains customary warranties regarding the GAP
project and the parties' ability to enter into the Proposed Transaction and is
subject to customary termination rights and confidentiality obligations. 
 
(b) Other Contingencies 
 
The Group has received a claim from various trade union organisations in
Brazil regarding outstanding membership fees due in relation to various
subsidiaries within the Group. Some of these claims relate to periods prior to
the acquisition of the relevant subsidiary and would be covered by warranties
granted by the previous owners at the date of sale. The Directors are
confident that no amounts are due in relation to these proposed membership
fees and that the claims will be unsuccessful. No subsequent actions, claims
or communications from the various trade union organisations have been
received subsequent to the requests for payment. As a result, no provision has
been made in the Financial Statements for the year ended 31 December 2016 for
amounts claimed. Should the claim be successful, the maximum amount payable in
relation to fees not subject to the warranty agreement would be approximately
£64,000. 
 
In 2013 the Group received an infraction notice from the Brazilian
Environmental Agency's ('IBAMA') district office in Conceição do Araguaia in
connection with carrying out  drilling activities in 2011 without the relevant
permits. Drilling equipment was furthermore impounded. The Group strongly
believes that it operated with all necessary permits and has initiated legal
proceedings to overturn the infraction notice. The Group has secured
cancellation of the injunction and has appealed the associated fine and
infraction notices of approximately £68,000 which has not been recognised in
these financial statements. 
 
In August 2014, the Group received a claim from a former employee in Brazil
with regard to amounts allegedly due under the terms of his employment. The
Group is defending the claim and it is not currently practicable to estimate
the extent of any liability that may arise. 
 
In December 2014, the Group received a writ from the State Attorney in
Conceiçao do Araguaia regarding alleged environmental damages caused by
drilling activities in 2011. To ensure proper environmental stewardship, the
Group conducts certified baseline studies prior to all drill programmes and
ensures that areas explored are properly maintained and conserved in
accordance with local environmental legislation. After drilling has occurred,
drill sites and access routes are rehabilitated to equal or better conditions
and evidence is retained to demonstrate that such rehabilitation work has been
completed. In January 2015, the Group filed a robust defence against the writ.
A court hearing was held in May 2015 at which documents were requested to
confirm that valid environmental authorisations were in place. These were
subsequently submitted as requested. No substantive financial claim continues
to be made against the Group under the terms of the writ. The Group continues
to believe that the writ is flawed and is working towards having it withdrawn
in due course.  As a result no provision has been made in the Financial
Statements for the year ended 31 December 2016. 
 
28 Parent Company Statement of Comprehensive Income 
 
As permitted by section 408 of the Companies Act 2006, the statement of
comprehensive income of the Parent Company is not presented as part of these
Financial Statements. The Parent Company's profit for the year was £602,827
loss (2015: £421,479 profit). 
 
29 Events after the reporting date 
 
No significant events have occurred since the reporting date. 
 
This announcement contains inside information for the purposes of Article 7 of
EU Regulation 596/2014. 
 
* * ENDS * * 
 
For further information visit www.horizonteminerals.com or contact: 
 
 Jeremy Martin                                  Horizonte Minerals plc                                                                         Tel: +44 (0) 20 7763 7157                                                    
 David Hall                                     Horizonte Minerals plc                                                                         Tel: +44 (0) 20 7763 7157                                                    
 Emily MorrisChristopher RaggettJames Thompson  finnCap Ltd (Corporate Broking)finnCap Ltd (Corporate Finance)finnCap Ltd (Corporate Finance)  Tel: +44 (0) 20 7220 0500Tel: +44 (0) 20 7220 0500Tel: +44 (0) 20 7220 0500  
 Anthony Adams                                  finnCap Ltd (Corporate Finance)                                                                Tel: +44 (0) 20 7220 0500                                                    
 Damon Heath                                    Shard Capital  (Joint Broker)                                                                  Tel: +44 (0) 20 7186 9952                                                    
 Erik Woolgar                                   Shard Capital (Joint Broker)                                                                   Tel: +44 (0) 20 7186 9952                                                    
 Lottie BrocklehurstElisabeth Cowell            St Brides Partners Ltd (PR)St Brides Partners Ltd (PR)                                         Tel: +44 (0) 20 7236 1177Tel: +44 (0) 20 7236 1177                           
 
 
About Horizonte Minerals: 
 
Horizonte Minerals plc is an AIM and TSX-listed nickel development company
focused in Brazil, which wholly owns the advanced Araguaia nickel laterite
project located to the south of the Carajas mineral district of northern
Brazil.  The Company is developing Araguaia as the next major nickel mine in
Brazil, with targeted production by 2019. 
 
The Project has good infrastructure in place including rail, road, water and
power. 
 
Horizonte has a strong shareholder structure including Teck Resources Limited
17.9%, Henderson Global Investors 14.1%, Richard Griffiths 14.5%, JP Morgan
8.4%, Hargreave Hale 6.4% and Glencore 6.4%. 
 
CAUTIONARY STATEMENT REGARDING FORWARD LOOKING INFORMATION 
 
Except for statements of historical fact relating to the Company, certain
information contained in this press release constitutes "forward-looking
information" under Canadian securities legislation. Forward-looking
information includes, but is not limited to, statements with respect to the
potential of the Company's current or future property mineral projects; the
success of exploration and mining activities; cost and timing of future
exploration, production and development; the estimation of mineral resources
and reserves and the ability of the Company to achieve its goals in respect of
growing its mineral resources; and the realization of mineral resource and
reserve estimates. Generally, forward-looking information can be identified by
the use of forward-looking terminology such as "plans", "expects" or "does not
expect", "is expected", "budget", "scheduled", "estimates", "forecasts",
"intends", "anticipates" or "does not anticipate", or "believes", or
variations of such words and phrases or statements that certain actions,
events or results "may", "could", "would", "might" or "will be taken", "occur"
or "be achieved". Forward-looking information is based on the reasonable
assumptions, estimates, analysis and opinions of management made in light of
its experience and its perception of trends, current conditions and expected
developments, as well as other factors that management believes to be relevant
and reasonable in the circumstances at the date that such statements are made,
and are inherently subject to known and unknown risks, uncertainties and other
factors that may cause the actual results, level of activity, performance or
achievements of the Company to be materially different from those expressed or
implied by such forward-looking information, including but not limited to
risks related to: exploration and mining risks, competition from competitors
with greater capital; the Company's lack of experience with respect to
development-stage mining operations; fluctuations in metal prices; uninsured
risks; environmental and other regulatory requirements; exploration, mining
and other licences; the Company's future payment obligations; potential
disputes with respect to the Company's title to, and the area of, its mining
concessions; the Company's dependence on its ability to obtain sufficient
financing in the future; the Company's dependence on its relationships with
third parties; the Company's joint ventures; the potential of currency
fluctuations and political or economic instability  in countries in which the
Company operates; currency exchange fluctuations; the Company's ability to
manage its growth effectively; the trading market for the ordinary shares of
the Company; uncertainty with respect to the Company's plans to continue to
develop its operations and new projects; the Company's dependence on key
personnel; possible conflicts of interest of directors and officers of the
Company, and various risks associated with the legal and regulatory framework
within which the Company operates. 
 
Although management of the Company has attempted to identify important factors
that could cause actual results to differ materially from those contained in
forward-looking information, there may be other factors that cause results not
to be as anticipated, estimated or intended. There can be no assurance that
such statements will prove to be accurate, as actual results and future events
could differ materially from those anticipated in such statements. 
 
This information is provided by RNS
The company news service from the London Stock Exchange