REG - Metminco Limited - Half Year Results <Origin Href="QuoteRef">MNC.AX</Origin>

Merino & CoAnnouncement

13/09/2017 09:05

RNS Number : 6137Q
Metminco Limited
13 September 2017
AIM ANNOUNCEMENT
13 September 2017
Half Year Report
Metminco Limited (ASX: MNC; AIM: MNC) is pleased to announce that it has today released its report for the half year ended 30 June 2017. 
An extract from the report is set out below. The full report can be accessed from the Company's website www.metminco.com.au
HIGHLIGHTS
Miraflores Bankable Feasibility Study
Metminco Limited (Metminco or the Company) acquired Miraflores Compania Minera SAS (Miraflores Compania), formerly Minera Seafield SAS from RMB Australia Holdings Limited (RMB) in June 2016. 
Miraflores Compania Minera owns 100% of the Quinchia Gold Portfolio which;
 has a NI 43-101 estimated Mineral Resource of 2.8 million ounces of gold, 
 covers 6,043Ha of granted concessions and an additional 3,792Ha of pending applications, 
 contains a number of deposits and significant exploration targets including Miraflores, Dosquebradas, Tesorito and Chuscal, and,
 is located in Colombia's Middle Cauca Belt, which hosts several multimillion ounce gold discoveries
 The Miraflores Project has a JORC 2012 compliant Measured and Indicated Mineral Resource of 9.27 million tonnes at 2.82g/t Au and 2.77g/t Ag containing 840,000 oz Au and 826,000 oz Ag at a 1.2g/t Au cut-off, 
 The Miraflores Project has a mineable quantity of 4.32 million tonnes at 3.3g/t Au and 2.56g/t Ag at a 1.53g/t cut-off containing 458,000 oz of Au and 355,000 oz Ag. 
 The Company commenced with a Bankable Feasibility Study in November 2016 and is expected to complete the study by the end of 3Q2017.
 Metallurgical testwork commissioned by Metminco on Miraflores ores confirmed previous testwork results with gold recovery of 91% confirmed.
 Optimisation of the mining plan and schedule for the feasibility study has resulted in significant operating cost savings from previous studies.
 Changes from previous studies such as backfill, tailings disposal, stoping height, and plant layout and changes to the mine plan including changing from an open pit/underground configuration to underground only operations will accelerate permitting for the operation.
Los Calatos Copper-Molybdenum Project 
 Agreement to dispose of the Company's remaining interest in the Los Calatos Project was reached with CD Capital Natural Resources Fund III LP (CD Capital) with final settlement of the transaction on 28 June 2017. The Company received US$5 million net of costs for its remaining interest in Los Calatos.
Chile
 The Company's assets in Chile remained on care and maintenance during the half year. 
Corporate
 The Company secured funding to progress the Miraflores Project through to completion of a Bankable Feasibility Study and decision to mine from the sale of the Los Calatos Project. 
 The Company's cash position as at 30 June 2017 was approximately A$6.3 million. 
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME 
For the half year ended 30 June 2017

Note
30 June 2017
$
30 June 2016
$




Revenue 

-
192
Finance costs on deferred consideration
15
(229,730)
-
Foreign exchange (loss) / gain

(60,779)
25,879
Administration expenses

(288,047)
(116,248)
Corporate expenses 

(1,206,987)
(615,995)
Occupancy expense

(51,860)
(129,856)
Exploration expenditure written off
4
(87,880)
(290,378)
Loss on sale of asset
16
(27,165,722)
-
Unrealised loss on derivative asset 
8
(1,553,481)
-
Realised loss on derivative asset
8
(106,118)
-
Profit on disposal of assets

23,570
-
Loss before income tax
2
(30,727,034)
(1,126,406)
Income tax expense

-
-
Loss for the period from continuing operations

(30,727,034)
(1,126,406)
Other comprehensive income:
Items that may be reclassified subsequently to profit or loss:



Exchange differences on translating foreign controlled entities
9
(1,430,655)
(1,244,390)
Total comprehensive (loss) for the period

(32,157,689)
(2,370,796)




Loss attributable to:


 Members of the parent entity

(30,727,034)
(1,126,406)


(30,727,034)
(1,126,406)
Total comprehensive (loss) attributable to:



 Members of the parent entity

(32,157,689)
(2,370,796)


(32,157,689)
(2,370,796)
Loss per share



 From continuing operations:



 Basic loss per share (cents)
10
(25.38)
(0.04)
 Diluted loss per share (cents)
10
(25.38)
(0.04)
These financial statements should be read in conjunction with the accompanying notes.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION 
As at 30 June 2017

Note
30 June 2017 
$
31 December 2016
$
ASSETS



CURRENT ASSETS



Cash and cash equivalents

6,349,931
71,548
Trade and other receivables
7
596,413
385,827
Derivative asset
8
215,235
-
Other assets

12,506
21,060
TOTAL CURRENT ASSETS

7,174,085
478,435
NON-CURRENT ASSETS



Derivative asset
8
258,440
-
Investment in associate
16
-
33,766,877
Property, plant and equipment
3
4,257,086
4,538,349
Exploration and evaluation expenditure
4
10,421,030
9,486,691
TOTAL NON-CURRENT ASSETS

14,936,556
47,791,917
TOTAL ASSETS

22,110,641
48,270,352
LIABILITIES



CURRENT LIABILITIES



Trade and other payables
5
5,717,660
3,425,242
Short-term provisions
6
208,976
236,775
TOTAL CURRENT LIABILITIES

5,926,636
3,662,017
NON-CURRENT LIABILITIES



Long-term provisions
6
49,272
79,903
Long-term payable
5
4,159,681
4,893,628
TOTAL NON-CURRENT LIABILITIES

4,208,953
4,973,531
TOTAL LIABILITIES

10,135,589
8,635,548
NET ASSETS

11,975,052
39,634,804
EQUITY



Issued capital
12
333,092,371
329,032,074
Other reserves

(31,135,702)
(30,142,687)
Accumulated losses

(289,981,617)
(259,254,583)
TOTAL EQUITY

11,975,052
39,634,804




These financial statements should be read in conjunction with the accompanying notes.

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 
For the half year ended 30 June 2017


Issued
Capital
Accumulated Losses
Option Reserve
Convertible Note equity reserve
Foreign Currency Translation Reserve
Acquisition Reserve
Total


$
$
$
$
$
$
$
Balance at 1 January 2016

324,037,464
(137,675,903)
67,756
_
23,230,638
(41,506,662)
168,153,293
Loss attributable to members of the parent entity

_
(1,126,406)
_
_
_
_
(1,126,406)
Other comprehensive income

_
_
_
_
(1,244,390)
_
(1,244,390)
Total comprehensive income for the period

_
(1,126,406)
_
_
(1,244,390)
_
(2,370,796)
Shares issued during the period

3,960,910
_
_
_
_
_
3,960,910
Transaction costs

(152,813)
_
_
_
_
_
(152,813)
Options lapsed during the period

_
13,070
(13,070)
_
_
_
_
Balance at 30 June 2016

327,845,561
(138,789,239)
54,686
_
21,986,248
(41,506,662)
169,590,594









Balance at 1 January 2017

329,032,074
(259,254,583)
54,686
_
11,309,289
(41,506,662)
39,634,804
Loss attributable to members of the parent entity

_
(30,727,034)
_
_
_
_
(30,727,034)
Other comprehensive loss

_
_
_
_
(1,430,655)
_
(1,430,655)
Total comprehensive loss for the period

_
(30,727,034)
_
_
(1,430,655)
_
(32,157,689)
Shares issued during the period

4,375,000
_
_
_
_
_
4,375,000
Transaction costs

(314,703)
_
_
_
_
_
(314,703)
Equity component of convertible note

_
_
_
11,468
_
_
11,468
Options issued during the period

_
_
426,172
_
_
_
426,172
Balance at 30 June 2017

333,092,371
(289,981,617)
480,858
11,468
9,878,634
(41,506,662)
11,975,052



These financial statements should be read in conjunction with the accompanying notes.
`

CONSOLIDATED STATEMENT OF CASH FLOWS
For the half year ended 30 June 2017

Note
30 June 2017
$
30 June 2016
$
CASH FLOWS FROM OPERATING ACTIVITIES



Payments to suppliers and employees

(1,573,133)
(779,763)
Interest received

-
192
Net cash used in operating activities

(1,573,133)
(779,571)
CASH FLOWS FROM INVESTING ACTIVITIES



Sale of property, plant and equipment

23,570
12,100
Payments for exploration expenditure

(1,203,307)
(1,283,365)
Purchase of Miraflores Compania 

-
(219,105)
Proceeds from sale of Los Calatos

6,601,155
-
Net cash used in investing activities

5,421,418
(1,490,370)
CASH FLOWS FROM FINANCING ACTIVITIES



Proceeds from issue of shares

2,020,035
1,960,910
Payments in respect to capital raisings

(314,704)
(152,814)
Cash received on acquisition of Miraflores Compania

-
75,467
Cash received from convertible notes 
17
750,000
-
Cash received from derivative asset
8
35,549
-
Net cash provided by financing activities

2,490,880
1,883,563




Net increase / (decrease) in cash held

6,339,165
(386,378)
Cash and cash equivalents at beginning of financial period

71,548
949,790
Effect of exchange rates on cash holdings in foreign currencies

(60,782)
25,880
Cash and cash equivalents at end of financial period

6,349,931
589,292












These financial statements should be read in conjunction with the accompanying notes.
This announcement contains inside information as stipulated under Article 7 of the Market Abuse Regulation (EU) No. 596/2014.
For further information, please contact:
METMINCO LIMITED


Brian Jones

Office: +61 (0) 2 9460 1856



NOMINATED ADVISOR AND BROKER


RFC Ambrian 


Australia


Will Souter / Nathan Forsyth

Office: +61 (0) 2 9250 0000



United Kingdom


Charlie Cryer

Office: +44 (0) 20 3440 6800



JOINT BROKER


SP Angel Corporate Finance LLP (UK)


Ewan Leggat

Office: +44 (0) 20 3470 0470



PUBLIC RELATIONS


Camarco
United Kingdom


Gordon Poole / Tom Huddart 

Office: + 44 (0) 20 3757 4997



Media & Capital Partners
Australia


Luke Forrestal

Office: + 61 (0) 411 479 144



Forward Looking Statement
All statements other than statements of historical fact included in this announcement including, without limitation, statements regarding future plans and objectives of Metminco are forward-looking statements. When used in this announcement, forward-looking statements can be identified by words such as ''anticipate", "believe", "could", "estimate", "expect", "future", "intend", "may", "opportunity", "plan", "potential", "project", "seek", "will" and other similar words that involve risks and uncertainties. 
These statements are based on an assessment of present economic and operating conditions, and on a number of assumptions regarding future events and actions that, as at the date of this announcement, are expected to take place. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties, assumptions and other important factors, many of which are beyond the control of the Company, its directors and management of Metminco that could cause Metminco's actual results to differ materially from the results expressed or anticipated in these statements.
The Company cannot and does not give any assurance that the results, performance or achievements expressed or implied by the forward-looking statements contained in this announcement will actually occur and investors are cautioned not to place undue reliance on these forward-looking statements. Metminco does not undertake to update or revise forward-looking statements, or to publish prospective financial information in the future, regardless of whether new information, future events or any other factors affect the information contained in this announcement, except where required by applicable law and stock exchange listing 

This information is provided by RNS
The company news service from the London Stock Exchange
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