REG - Starvest PLC - Half-year report - six months ended 31 March 2018

StarvestAnnouncement

07/06/2018 09:00

RNS Number : 5804Q
Starvest PLC
07 June 2018
 


7 June 2018  


Starvest Plc
 
("Starvest" or "the Company")
 
Half-year report - six months ended 31 March 2018
 
Chairman's statement
 
A modest recovery in the mining and resources sector prevailed during the latter half of 2017 but market volatility and a decline in commodity prices impacted share prices through Q1 2018. As a result, we saw an across the board decline in our portfolio share valuations as at the end of the half yearly reporting period of 31 March 2018. Our net asset value decreased from £1.88m as at 30 September 2017 to £1.38m as at 31 March 2018; this decline being responsible for the majority of the loss for the period of £515,618. But market conditions have been better throughout Q2 2018 and we note improved valuations since reporting 31 March 2018. As at 31 May 2018 our Trading Portfolio Value had increased to £1.33m, up from £1.18m at 31 March 2018 and net asset value increased to £1.49m or 2.81 pence per share on a discounted basis.
 
The Company continues its historic policy of investing in early stage mining resource projects, but we are also looking at new investment areas such as investing directly in projects. Currently we are reviewing several projects with a precious metal focus (gold, silver) and several base metal projects (copper, nickel). These commodities continue to be sought after due to global economic expansion. Niche commodities are also on our radar such as lithium and cobalt which could see significant price increases through changes in everyday technology.
 
Several of our investee companies remain extremely active and have provided very positive news-flow over the reporting period. Cora Gold plc (AIM:CORA) announced very encouraging gold exploration results from its projects in West Africa. Exciting high-grade results and large gold mineralised structures have been identified over several kilometres in preliminary drilling at the Sanankoro and Tekeledougou areas. Ariana Resources PLC (AIM:AAU) continued to improve efficiency at its gold-silver operation at Kiziltepe having produced over 15,000 oz gold with revenue of more than US$20m since April 2017. Cash costs are less than US$600 per ounce against an average gold price of US$1,377/oz. Significant upside is also apparent from additional resources at Tavsan and exploration work at Salinbas.
 
Salt Lake Potash (AIM:SO4) continued to develop its potash assets in Western Australia and has identified world class scale potential at its Salt Lakes project. The company has also entered into a MOU for an offtake agreement with a subsidiary of the large Japanese based Mitsubishi Corporation. Greatland Gold PLC (AIM:GGP) has reported positive work from geochemical and geophysical work at its Ernest Giles and Paterson projects. A new target, Black Hills, in the Paterson region shows high grade gold from surface rock chip samples and multiple gold intercepts in broad spaced drilling. Greatland has announced that drilling is planned for several targets in Q2 and Q3 2018, and possibly Q4 2018 also.
 
Other investee companies push ahead such as Oracle Power (AIM:ORCP) seeing its proposed coal mine and power plant project elevated to a priority list by the local government and an agreement signed with Asian parties which is a step toward securing the required capital to proceed with development. And oil and gas producer Kuwait Energy has released another solid set of annual financial results from its oil and gas operations in the Middle East and North Africa.
 
Whilst the recovery in the commodities market remains modest the board of Starvest believes the Company is well positioned as the sector accelerates and enters its next cycle. We continue to expect robust demand for energy and metals over the medium and long term and look forward to providing further updates to investors and the market during the coming weeks.
 
Callum N  Baxter
Chairman & Chief Executive
7 June 2018




Income Statement
 








6 months to 31 March 2018


6 months to 31 March 2017


Year ended
 30 September 2017








Unaudited
£


Unaudited
£


Audited
£
 




Revenue


-


58,364


526,595




Cost of sales


-


(50,013)


(266,466)




Gross profit


-


8,351


260,129




Administrative expenses


(128,922)


(116,444)


(274,506)




Amounts written off against trade investments


(415,421)


(198,117)


(277,277)




Amounts written back against trade investments


28,725


160,649


588,398




Operating (loss) / profit


(515,618)


(145,561)


296,744




Interest receivable


2,945


2,737


5,585




(Loss) / profit on ordinary activities before tax


(512,673)


(142,824)


302,329




Tax on profit on ordinary activities


-


-


-




(Loss) / profit attributable to Equity holders of the Company


(512,673)


(142,824)


302,329






















(Loss) / earnings per share - see note 3
Basic
Diluted


 
(0.97) pence
(0.83) pence


 
(0.34) pence
(0.34) pence


 
0.64 pence
0.54 pence




 




Statement of Financial Position
 












6 months ended 31 March 2018


6 months ended 31 March 2017


Year ended
 30 September 2017












Unaudited
£


Unaudited
£


Audited
£




Current assets
Trade and other receivables
Trade investments
Cash and cash equivalents


 
 
 


 
18,552
1,183,287
270,995


 
57,540
1,285,429
8,084


 
29,589
1,519,983
432,782




Total current assets






1,472,834


1,351,053


1,982,354


























Current liabilities
Trade and other payables






 
(104,766)


 
(91,465)


 
(101,613)




Total current liabilities






(104,766)


(91,465)


(101,613)


























Net current assets






1,368,068


1,259,588


1,880,741




 
Capital and reserves
Called up share capital
Share premium account
Profit and loss account
Equity reserve






 
 
528,982
1,640,876
(804,290)
2,500


 
 
436,435
1,554,923
(736,770)
5,000


 
 
528,982
1,640,876
(291,617)
2,500




Total equity shareholders' funds






1,368,068


1,259,588


1,880,741












 




Statement of Cash Flows
 












6 months ended 31 March 2018


6 months ended 31 March 2017


Year ended
 30 September 2017












Unaudited
£


Unaudited
£


Audited
£


























Cash flows from operating activities




















Operating (loss)/profit






(515,618)


(145,561)


296,744




Net interest receivable






2,945


2,737


5,585




Share based payment charge






-


80,500


46,500




Increase in debtors






11,037


14,127


42,078




Increase/(decrease) in creditors






3,153


(40,762)


16,886




Net cash flows from operating activities






(498,483)


(88,959)


407,793


























Cash flows from investing activities




















Purchase of current asset investments






(50,000)


-


(100,000)




Sale of current asset investments






-


58,070


523,883




Profit on sale of current asset investments






-


(8,351)


(260,129)




Increase in investment provisions






415,421


198,117


277,277




Decrease in investment provisions






(28,725)


(160,649)


(588,398)




Net cash flows from investing activities






336,696


87,187


(147,367)


























Cash flows from financing activities




















Proceeds from issue of shares






-


-


170,000




Transaction costs of issue of shares






-


-


(7,500)




Net cash flows from financing activities






-


-


162,500


























Net (decrease)/increase in cash and cash equivalents






(161,787)


(1,772)


422,926




Cash and cash equivalents at beginning of period






432,782


9,856


9,856




Cash and cash equivalents at end of period






270,995


8,084


432,782


































 




 
 
Statement of Changes in Equity








Share capital


Share premium






Profit and loss account


Total Equity attributable to shareholders










Equity reserve








£


£


£


£


£




At 30 September 2016


396,185


1,514,673


5,000


(593,946)


1,321,912






























(Loss)/profit for the period


-


-


-


(142,824)


(142,824




Total recognised income and expenses for the period


-


-


 
-


(142,824)


(142,824)






























Shares issued


40,250


40,250


-


-


80,500




Total contribution by and distributions to owners


40,250


40,250


 
-


-


80,500






























At 31 March 2017


436,435


1,554,923


5,000


(736,770)


1,259,588






























At 30 September 2017


528,982


1,640,876


2,500


(291,617)


1,880,741






























(Loss)/profit for the period


-


-


-


(512,673)


(512,673)




Total recognised income and expenses for the period


-


-


-


(512,673)


(512,673)






























Shares issued


-


-


-


-


-




Total contributions by and distributions to owners


-


-


-


-


-






























At 31 March 2018


528,982


1,640,876


2,500


(804,290)


1,368,068




 




Interim report notes
 
1.   Interim report
The information relating to the six month periods to 31 March 2018 and 31 March 2017 is unaudited. 
The information relating to the year ended 30 September 2017 is extracted from the audited accounts of the Company which have been filed at Companies House and on which the auditors issued an unqualified audit report.
2.   Basis of preparation
This report has been prepared in accordance with applicable United Kingdom accounting standards, including Financial Reporting Standard 102 - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' ('FRS102'), and with the Companies Act 2006. Although the information included herein does not constitute statutory accounts within the meaning of section 435 of the Companies Act 2006, the accounting policies that have been applied are consistent with those adopted for the statutory accounts for the year ended 30 September 2017.
The Company will report again for the full year to 30 September 2018.
The Company's investments at 31 March 2018 are stated at the lower of cost and net realisable value or the valuation adopted at 30 September 2017 or the current market value based on bid prices at the close of business. The Chairman's statement includes a valuation based on bid prices at 31 March 2018.
3.   Loss per share












6 months ended 31 March 2018


6 months ended 31 March 2017


Year ended
 30 September 2017












Unaudited
£


Unaudited
£


Audited
£


























 (Loss)/profit for the year:


(512,673)


(142,824)


302,329




 
Weighted average number of Ordinary shares of £0.01 in issue


 
52,898,163


 
41,816,935


 
47,287,952




 
(Loss)/earnings per share - basic
 


 
(0.97) pence


 
(0.34) pence


 
0.64 pence




 
Warrants in issue
 


 
8,500,000


 
-


 
8,500.000




 
Weighted average number of Diluted Ordinary shares of £0.01 in issue


 
61,398,163


 
41,816,935


 
55,787,952




 
(Loss)/earnings per share - diluted
 


 
(0.83) pence


 
(0.34) pence


 
0.54 pence












 
 
 
 
 
 
 
 
Investment portfolio
Starvest now holds trade investments in the companies listed below; of these the following companies comprised 95% of the portfolio value as at 31 March 2018:




·      Alba Mineral Resources plc


Exploration for oil in England, lead-zinc in Ireland, uranium in Mauritania and graphite in Greenland www.albamineralresources.com




·      Ariana Resources plc


Gold-silver production and exploration in Turkey
www.arianaresources.com




·      BMR Group plc
 
·      Cora Gold Limited


Lead and zinc in Zambia
www.bmrplc.com
Gold exploration in West Africa
www.coragold.com
 




·      Greatland Gold plc


Gold exploration in Australia
www.greatlandgold.com




·      Kefi Minerals plc


Gold and copper exploration in Ethiopia and Saudi Arabia
www.kefi-minerals.com




·      Kuwait Energy plc


Oil exploration and operations in Middle East and North Africa
www.kec.com




·      Oracle Power plc (formerly Oracle Coalfields plc)


Coal mining in Pakistan
www.oraclepower.co.uk




Other direct and indirect mineral exploration companies:
 




·      Block Energy plc (formerly Goldcrest Resources plc)


Oil and gas exploration in Georgia
www.blockenergy.co.uk




·      Marechale Capital plc


Investment banking and corporate finance www.marechalecapital.com




·      Minera IRL Limited


Gold exploration in South America
www.minera-irl.com 




·      Regency Mines plc


Copper & nickel exploration in Australia and Papua New Guinea and investments in Red Rock Resources plc, and Direct Nickel Limited
www.regency-mines.com




·      Salt Lake Potash Limited
 


Potash in Australia
www.saltlakepotash.com.au 




·      Sunrise Resources plc


Exploration for industrial minerals in United States, and Australia
www.sunriseresourcesplc.com




Other investee companies are listed in the Company's 2017 annual report available on request as below or downloaded from www.starvest.co.uk.
Copies of this interim report are available free of charge by application in writing to the Company Secretary at the Company's registered office, Salisbury House, London Wall, London EC2M 5PS, by email to info@starvest.co.uk or from the Company's website at www.starvest.co.uk.
 
 
Enquiries to:
 
Starvest PLC
Callum Baxter, Chairman/CEO 07922 255 933   cbaxter@starvest.co.uk
 
Grant Thornton UK LLP (Nomad)
Colin Aaronson or Harrison Clarke  020 7383 5100
 
SI Capital Ltd (Appointed Broker)
Nick Emerson or Alan Gunn  01483 413 500
 




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