REG - Starvest PLC - Half-year Report
06/06/2023 07:00
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RNS Number : 7113B Starvest PLC 06 June 2023
6 June 2023
Half-year report - six months ended 31 March 2023
Chairman's statement
Over the six months to 31 March 2023, Starvest (the "Company") benefited
somewhat from the resilience of the natural resources sector in an atmosphere
of continued inflation and economic effects of conflict in eastern Europe.
Commodity prices, including gold, remained relatively high, providing a solid
foundation for our investee companies.
The Company's portfolio value and net asset value increased 5% and 3%
respectively during the six months to 31 March 2023, since the Company's
financial year-end. Our discount to net asset value was 31% on 31 March
2023, compared to a discount of 29% on 30 September 2022.
The natural resources sector is forecast to continue to make gains in the
post-pandemic economic recovery period. We also expect the sector to benefit
from large-scale infrastructure and climate-focused projects at the forefront
of government spending plans and private sector investment.
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 intrinsic value of the Company's portfolio with shareholder
interests.
During the last six months, Greatland Gold (LON:GGP), which makes up
substantially the largest part of our portfolio value, advanced its Paterson
projects. Havieron, a joint venture with Newcrest Mining, continued to
increase the resource base at the project through surface drilling, and
decline development has accelerated over the period; a definitive feasibility
study is expected before the end of calendar 2023. During May 2023, Havieron
joint venture partner Newcrest Mining accepted a US$19.1 billion buyout offer
from the world's largest gold miner, Newmont. We believe this will bring a
positive new dynamic to the Paterson project area over the coming months.
Greatland is also concentrating on early-stage exploration targets within its
other licences and has reported significant drill results in 100%-owned Rudall
tenement, as well as strong mineralisation pathfinders at 100%-owned
Scallywag, and a new joint venture agreement with Rio Tinto allowing Greatland
to explore an additional 1,884sq km of prospective terrain in the Paterson
region.
Ariana Resources (LON:AAU) continues to focus on exploration and development
in south-eastern Europe, in particular with work on the Tavsan mine
infrastructure in Türkiye. Its 75%-held subsidiary, West Tethyan Resources,
signed an earn-in agreement on a gold project in Kosova. West Tethyan
currently has a strategic agreement with Ariana and Newmont stemming from the
five-year, US$2.5 million strategic alliance Ariana has with Newmont.
Following the release of a definitive feasibility study in late November 2022,
Cora Gold (LON:CORA) completed a capital raise of approximately US$20m in
ordinary shares and convertible loans in early March 2023. Funds will be used
primarily to commence development of the Company's flagship Sanankoro Gold
Project in southern Mali.
Kefi Minerals (LON:KEFI) continued with development of the Tulu Kapi gold mine
in Ethiopia and remains on target to start full production during 2023, with
full financing near completion. Kefi has also made significant advances on its
Saudi Arabia projects and expects to complete a definitive feasibility study
this year at the Jabil Qitman gold project; and a pre-feasibility study is
near completion at its Hawiah copper-gold project.
Other investee companies continue their efforts as well. Oracle Power
(LON:ORCP) has recently revised its strategy to focus more on green hydrogen
energy in Pakistan, advancing plans for the project with strategic partners in
relation to land, fuel cell development and offtake agreements. It also
recently signed an MoU to continue its coal power station plans in Pakistan;
as well as entering a farm-in agreement on its gold exploration assets in
Western Australia.
Sunrise Resources (LON:SRES) continues to advance its pozzolan-perlite project
in Nevada, USA towards mine permitting, while Alba (LON:ALBA) is developing
its Welsh gold deposits and its spin-out company GreenRoc, in which it holds a
45% stake, advances its Greenland graphite and ilmenite projects.
Despite the prolonged increases in global interest rates to stem inflationary
pressures, we continue to 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
6 June 2023
Statement of Comprehensive Income
6 months to 31 March 2023 6 months to 31 March 2022 Year ended
30 September 2022
Unaudited Unaudited Audited
£ £ £
Administrative expenses (154,040) (155,472) (305,944)
(Loss)/gain on disposal of financial assets - (29,383) (53,398)
Movement in fair value of financial assets through profit and loss 308,500 (2,195,966) (7,234,928)
Investment income - 29,628 53,428
Operating profit/(loss) 154,460 (2,351,193) (7,540,842)
Profit/(loss) on ordinary activities before tax 154,460 (2,351,193) (7,540,842)
Tax on (loss) on ordinary activities - 587,798 1,671,086
Profit/(loss) attributable to equity holders of the parent 154,460 (1,763,395) (5,869,756)
Earnings per share - see note 3
Basic 0.26 pence (3.04 pence) (10.09 pence)
Diluted 0.26 pence (3.04 pence) (10.09 pence)
Statement of Financial Position
6 months ended 31 March 2023 6 months ended 31 March 2022 Year ended
30 September 2022
Unaudited Unaudited Audited
£ £ £
Non-current assets
Financial assets at fair value through profit or loss 6,464,672 11,625,035 6,156,173
Total non-current assets 6,464,672 11,625,035 6,156,173
Current assets
Trade and other receivables 36,768 53,615 77,424
Cash and cash equivalents 284,016 157,715 406,106
Total current assets 320,784 211,330 483,530
Current liabilities
Trade and other payables (33,069) (70,636) (41,776)
Total current liabilities (33,069) (70,636) (41,776)
Non-current liabilities
Provision for deferred tax - (1,083,288) -
Total non-current liabilities - (1,083,288) -
Net assets 6,752,387 10,682,441 6,597,297
Capital and reserves
Called up share capital 582,824 581,144 582,824
Share premium account 1,888,863 1,868,696 1,888,863
Retained earnings 4,280,700 8,232,601 4,126,240
Total equity shareholders' funds 6,752,387 10,682,441 6,597,927
Statement of Cash Flows
6 months ended 31 March 2023 6 months ended 31 March 2022 Year ended
30 September 2022
Unaudited Unaudited Audited
£ £ £
Cash flows from operating activities
Operating profit/(loss) 154,460 (2,351,192) (7,540,842)
Shares issued in settlement of salaries and fees - 21,847 43,694
Movement in fair value of investments (308,499) 2,195,966 7,234,928
(Loss)/profit on sale of current asset investments - 29,383 53,398
Decrease/(increase) in debtors 40,656 9,923 (13,885)
Decrease in creditors (8,707) (14,991) (43,851)
Net cash used in operating activities (122,090) (109,064) (266,558)
Cash flows from investing activities
Sale of current asset investments - 188,503 594,388
Net cash generated from investing activities - 188,503 594,388
Net (decrease)/increase in cash and cash equivalents (122,090) 79,439 327,830
Cash and cash equivalents at beginning of period 406,106 78,276 78,276
Cash and cash equivalents at end of period 284,016 157,716 406,106
Statement of Changes in Equity
Share capital Share premium Retained earnings Total Equity attributable to shareholders
£ £ £ £
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 contribution 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
Loss for the period - - (4,106,361) (4,106,361)
Total recognised income and expenses for the period - - (4,106,361) (4,106,361)
Shares issued 1,680 20,167 - 72,839
Total contribution by and distributions to owners 1,680 20,167 - 72,839
At 30 September 2022 582,824 1,888,863 4,126,240 6,597,927
Profit for the period - - 154,460 154,460
Total recognised income and expenses for the period - - 154,460 154,460
Shares issued - - - -
Total contributions by and distributions to owners - - - -
At 31 March 2023 582,824 1,888,863 4,280,700 6,752,387
Interim report notes
1. Interim report
The information relating to the six-month periods to 31 March 2023 and 31
March 2022 is unaudited.
The information relating to the year ended 30 September 2022 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 2022.
The Company will report again for the full year to 30 September 2023.
The Company's investments at 31 March 2023 are stated at the current market
value based on market quoted prices at the close of business on 31 March 2023.
The Chairman's statement includes a valuation based on market quoted prices at
the close of business on 31 March 2023.
3. Earnings per share
6 months ended 31 March 2023 6 months ended 31 March 2022 Year ended
30 September 2022
Unaudited Unaudited Audited
£ £ £
Profit/(loss) for the period/ year: 154,460 (1,763,395) (5,869,756)
Weighted average number of Ordinary shares of £0.01 in issue 58,282,493 58,080,245 58,181,646
Earnings per share - basic and diluted 0.27 pence (3.04 pence) (10.09 pence)
Investment portfolio
Starvest now holds trade investments in the companies listed below; of these
the following companies comprise 99% of the portfolio value as at 31 March
2023:
· Alba Mineral Resources plc Exploration for gold in Wales, oil in England, lead-zinc in Ireland, and
investment in GreenRoc 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
· Oracle Power plc Coal and green hydrogen 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 2022 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
Mark Badros 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 Sam Lomanto 01483 413 500
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