REG - Starvest PLC - Half-year Report
18/05/2022 14:15
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RNS Number : 9817L Starvest PLC 18 May 2022
18 May 2022
Half-year report - six months ended 31 March 2022
Chairman's statement
Over the six months to 31 March 2022, Starvest (the "Company") benefited
somewhat from the resilience of the natural resources sector against a
backdrop of emerging inflation and global unrest due to the conflict in
eastern Europe. Nonetheless, weakness in Greatland Gold's share price resulted
in a decline in portfolio value and net asset value of 17% and 16%,
respectively, over the six months to 31 March 2022, since the Company's
financial year-end.
Our discount to net asset value remained consistent over the six-month
period to 31 March 2022, being 34% on 30 September 2021 and 33% on 31 March
2022, while commodity prices, including gold have in general, remained
relatively high, providing a solid foundation for our investee companies.
While many sectors have not yet recovered to pre-pandemic levels, the natural
resources sector has made significant gains and is forecast to continue to do
so in an economic recovery. We also expect large-scale infrastructure and
climate-focused projects, at the forefront of government spending plans, will
benefit the natural resource sector.
As part of routine operations, the Board regularly reviews its portfolio
positions and may make adjustments to its holdings to take advantage of market
conditions. The Board is currently considering opportunities more likely to
better align the Company's stock price with what it regards as the intrinsic
value of the Company's portfolio.
Continuing to advance its Paterson projects, Greatland Gold (LON:GGP), which
makes up over 90% of our portfolio value, estimated its Havieron project at
6.5 Moz gold equivalent in an updated JORC compliant report. Its joint venture
partner Newcrest Mining is continuing with mine development and growth
drilling at Havieron, while Greatland Gold concentrates on early-stage
exploration targets within its other licences.
Ariana Resources (LON:AAU) continues to focus on exploration in south-eastern
Europe with a five-year, US$2.5 million strategic alliance recently announced
with Newmont Corporation through Ariana's 75%-owned West Tethyan Resources,
along with gold and silver production from its mining operations in Turkey.
Cora Gold (LON:CORA) has completed field work on a definitive feasibility
study for its flagship Sanankoro gold project, the full report is due for
completion in H2 2022. Cora has also started a 7,500m drill programme to
continue expansion of the resource at the Sanankoro project.
Kefi Minerals (LON:KEFI) continues with construction of the Tulu Kapi gold
mine in Ethiopia and remains on target to start full production in 2022. Kefi
has also made significant advances in its exploration and resource
calculations of the Jabil Qitman and Hawiah project in Saudi Arabia.
Other investee companies continue their efforts as well. Oracle Power
(LON:ORCP) has continued its exploration in Western Australia as well as
expanding into the green energy sectors with a new hydrogen energy project in
Pakistan.
Sunrise Resources (LON:SRES) is advancing its pozzolan-perlite project in
Nevada, USA towards mine permitting, while Alba (LON:ALBA) is continuing the
development of its Welsh gold deposits.
Despite the inevitable increase in global interest rates to stem inflationary
pressures, we believe that the effects of expansionary monetary policies,
continued fiscal stimulus and geopolitical tensions favour a positive outlook
for gold and precious metals in the longer term.
Callum N Baxter
Chairman & Chief Executive
18 May 2022
Statement of Comprehensive Income
6 months to 31 March 2022 6 months to 31 March 2021 Year ended
30 September 2021
Unaudited Unaudited Audited
£ £ £
Administrative expenses (155,472) (147,689) (290,993)
(Loss)/gain on disposal of financial assets (29,383) 19,313 19,339
Movement in fair value of financial assets through profit and loss (2,195,966) (1,088,092) (3,645,360)
Investment income 29,628 - 56,000
Operating profit (2,351,193) (1,216,468) (3,861,014)
Interest receivable - - -
Profit on ordinary activities before tax (2,351,193) (1,216,468) (3,861,014)
Tax on (loss) ordinary activities 587,798 - 332,532
(Loss) attributable to equity holders of the parent (1,763,395) (1,216,468) (3,528,482)
Earnings per share - see note 3
Basic (3.04 pence) (2.11 pence) (6.11 pence)
Diluted (3.04 pence) (2.11 pence) (6.11 pence)
Statement of Financial Position
6 months ended 31 March 2022 6 months ended 31 March 2021 Year ended
30 September 2021
Unaudited Unaudited Audited
£ £ £
Non-current assets
Financial assets at fair value through profit or loss 11,625,035 16,596,261 14,038,887
Total non-current assets 11,625,035 16,596,261 14,038,887
Current assets
Trade and other receivables 53,615 29,893 63,539
Cash and cash equivalents 157,715 125,344 78,276
Total current assets 211,330 155,237 141,815
Current liabilities
Trade and other payables (70,636) (84,716) (85,627)
Total current liabilities (70,636) (84,716) (85,627)
Non-current liabilities
Provision for deferred tax (1,083,288) (2,003,618) (1,671,086)
Total non-current liabilities (1,083,288) (2,003,618) (1,671,086)
Net assets 10,682,441 14,663,164 12,423,989
Capital and reserves
Called up share capital 581,144 575,740 579,820
Share premium account 1,868,696 1,779,414 1,848,173
Retained earnings 8,232,601 12,308,010 9,995,996
Total equity shareholders' funds 10,682,441 14,663,164 12,423,989
Statement of Cash Flows
6 months ended 31 March 2022 6 months ended 31 March 2021 Year ended
30 September 2021
Unaudited Unaudited Audited
£ £ £
Cash flows from operating activities
Operating loss (2,351,192) (1,216,468) (3,861,014)
Shares issued in settlement of salaries and fees 21,847 - 72,839
Movement in fair value of investments 2,195,966 1,088,092 3,645,360
(Loss)/profit on sale of current asset investments 29,383 (19,313) (19,339)
Decrease/(increase) in debtors 9,923 1,154 (32,493)
(Decrease) in creditors (14,991) (8,499) (7,587)
Net cash used in operating activities (109,064) (155,034) (202,234)
Cash flows from investing activities
Sale of current asset investments 188,503 160,013 160,145
Net cash generated from investing activities 188,503 160,013 160,145
Net increase in cash and cash equivalents 79,439 4,979 (42,089)
Cash and cash equivalents at beginning of period 78,276 120,365 120,365
Cash and cash equivalents at end of period 157,716 125,344 78,276
Statement of Changes in Equity
Share capital Share premium Retained earnings Total Equity attributable to shareholders
£ £ £ £
At 30 September 2020 575,740 1,779,414 13,524,478 15,879,632
Loss for the period - - (1,216,468) (1,216,468)
Total recognised income and expenses for the period - - (1,216,468) (1,216,468)
Shares issued - - - -
Total contribution by and distributions to owners - - - -
At 31 March 2021 575,740 1,779,414 12,308,010 14,663,164
Loss for the period - - (3,528,482) (3,528,482)
Total recognised income and expenses for the period - - (3,528,482) (3,528,482)
Shares issued 4,080 68,759 - 72,839
Total contribution by and distributions to owners 4,080 68,759 - 72,839
At 30 September 2021 579,820 1,848,173 9,995,996 12,423,989
Loss for the period - - (1,763,395) (1,763,395)
Total recognised income and expenses for the period - - (1,763,395) (1,763,395)
Shares issued 1,324 20,523 - 21,847
Total contributions by and distributions to owners 1,324 20,523 - 21,847
At 31 March 2022 581,144 1,868,696 8,232,601 10,682,441
Interim report notes
1. Interim report
The information relating to the six-month periods to 31 March 2022 and 31
March 2021 is unaudited.
The information relating to the year ended 30 September 2021 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 2021.
The Company will report again for the full year to 30 September 2022.
The Company's investments at 31 March 2022 are stated at the current market
value based on market quoted prices at the close of business on 31 March 2022.
The Chairman's statement includes a valuation based on market quoted prices at
the close of business on 31 March 2022.
3. Earnings per share
6 months ended 31 March 2022 6 months ended 31 March 2021 Year ended
30 September 2021
Unaudited Unaudited Audited
£ £ £
Loss for the year: (1,763,395) (1,216,468) (3,528,482)
Weighted average number of Ordinary shares of £0.01 in issue 58,080,245 57,573,986 57,755,713
Earnings per share - basic and diluted (3.04 pence) (2.11 pence) (6.11 pence)
Investment portfolio
Starvest now holds trade investments in the companies listed below; of these
the following companies comprised 99% of the portfolio value as at 31 March
2022:
· 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, and precious metal
exploration in Eastern Europe
www.arianaresources.com
· Cora Gold Limited Gold exploration in West Africa
www.coragold.com
· Greatland Gold plc Gold exploration and development in Australia
www.greatlandgold.com
· Kefi Minerals plc Gold and copper exploration and development in Ethiopia and Saudi Arabia
www.kefi-minerals.com
· iOracle Power plc Coal development in Pakistan and gold exploration in Australia
www.oraclepower.co.uk
Other direct and indirect mineral exploration companies:
· Block Energy plc (formerly Goldcrest Resources plc) Oil and gas exploration in Bulgaria
www.blockenergy.co.uk
· Sunrise Resources plc Exploration for industrial minerals in United States, Finland, Australia and
Ireland
www.sunriseresourcesplc.com
Other investee companies are listed in the Company's 2021 annual report
available on request or from the Company web site - www.starvest.co.uk
(http://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 - www.starvest.co.uk
Enquiries to:
Starvest PLC
Callum Baxter or Gemma Cryan 02077 696 876 or info@starvest.co.uk
Grant Thornton UK LLP (Nomad)
Colin Aaronson, Harrison Clarke or Ciara Donnelly 02073 835 100
SI Capital Ltd (Broker)
Nick Emerson or Alan Gunn 01483 413 500
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