TIDMKENV
RNS Number : 5421G
Kennedy Ventures PLC
23 November 2015
23 November 2015
Kennedy Ventures plc
("Kennedy Ventures" or "the Company")
Preliminary results for the year ended 30 June 2015
Kennedy Ventures plc which is focused on tantalite production in
Namibia through its 75% holding in African Tantalum (Pty) Limited
("Aftan"), is pleased to announce its preliminary results for the
year ended 30 June 2015.
Highlights
-- Successful 75% acquisition of Aftan for a total consideration of R12m (GBP0.66m).
-- Board and management team strengthened with the appointment
of Peter Hibberd as Chief Executive Officer and Caroline McLeod as
a Director.
Post-period end
-- Completion of a long term offtake agreement for the full
production from Aftan, with a major leading manufacturer of
electronic components.
-- Successful placing raising GBP1.4 million through the issue
of 26,666,667 new ordinary shares at 5.25p per share to be used
towards:
o Bringing the Tantalite Valley Mine back into production.
o Conducting due diligence on other potential tantalite
projects.
o Investment and general working capital.
-- Aftan purchased the remaining 40% interest in the Tantalite
Valley Project increasing Kennedy Venture's exposure to this
valuable mine.
-- Successful commissioning of Aftan's tantalite process plant in November 2015 within budget.
Outlook
-- Sales to the Company's offtaker to commence in the final quarter of 2015.
-- First phase of production is estimated to produce 5,000lbs
Ta(2) O(5) per month in Q2 2016 whilst the second phase of the
development will produce around 9,200lbs Ta(2) O(5) per month by
mid-2017 as we ramp up production to an initial target of 10,500
tonnes per month.
Peter Hibberd, CEO of Kennedy Ventures said:
"We have made excellent progress over the year as we transform
the Company into a material producer of tantalum, a rare and
valuable metal used in the production of electronic components and
alloys.
"We were delighted to announce at the beginning of November 2015
the successful commissioning of Aftan's tantalite process plant
within budget and the production of tantalite has begun. This is a
major milestone for the Company and we are confident that sales to
our offtaker will commence in the final quarter of 2015.
"We remain focused on increasing production at Tantalite Valley
to an initial target of 10,500 tonnes per month. Alongside this, we
are excited by the number of opportunities within the broader
tantalum field and continue to investigate these in our journey to
become a leading, highly profitable producer of tantalum."
ENDS
The annual report and accounts will be sent to shareholders
later today and will also be available on the Company's website at
www.kvplc.com.
For further information, please contact:
Kennedy Ventures plc 020 3757 4983
Peter Hibberd c/o Billy Clegg
Cenkos Securities (Nominated Adviser
and Joint Broker) 0131 220 6939
Derrick Lee / Nick Tulloch
Shore Capital (Joint Broker) 020 7408 4090
Mark Percy / Toby Gibbs (corporate finance)
Jerry Keen (corporate broking)
Peterhouse Corporate Finance (Joint
Broker)
Duncan Vasey 020 7469 0935
Camarco
Billy Clegg / Georgia Mann / Tom Huddart 020 3757 6983
Notes to editors
Tantalite concentrates form the vast majority of feedstock for
all tantalum products. As such they are critical and unreplaceable
parts of a wide range of modern electronics including computers,
tablets, mobile phones, motor components and video game
systems.
Aside from electronics, tantalum has significant usage in super
alloys, specialised steels, corrosion resistant equipment and
medicine.
Tantalum's applications are based on its unique physio -
chemical properties. The oxides and metal have extremely high
melting points, high heat conductivity and strong resistance to
corrosive environments. Combined, these factors have entrenched its
international demand and made it an important component of numerous
research projects and new technologies.
Trade pricing is following tantalum markets as per Asian Metals
and Metal Pages.
In August 2012, the US Securities and Exchange Commission
adopted a rule mandated by the Dodd-Frank Wall Street Reform and
Consumer Protection Act to require companies reporting to the SEC
to publicly disclose the origins of the tantalum they buy in order
to restrict the use of conflict minerals that originated in the
Democratic Republic of the Congo or an adjoining country. As a
result, users of tantalum are encouraged to demonstrate that their
supply chain is transparent to ensure that conflict-free tantalum
is procured.
It is intended that the tantalum produced by Aftan will be
conflict-free.
Chairman's Statement
We have made excellent progress over the year as we transform
the Company into a material producer of tantalum, a rare and
valuable metal used in the production of electronic components and
alloys.
The Company successfully acquired 75% of Aftan for a total
consideration of R12m (GBP0.66m), R4m (GBP0.22m) of which was
satisfied through the issue of 4,523,113 Ordinary Shares in Kennedy
Ventures at a price of 4.9p per share and the remainder through a
loan of R8m (GBP0.45m). Post period end, Aftan purchased the
remaining 40% interest in the Tantalite Valley Project, enabling it
to become the sole owners of operating companies and therefore
increasing Kennedy Venture's exposure to this valuable mine.
In July 2015, we reached an important milestone following the
completion of a long term offtake agreement with a major leading
manufacturer of electronic components for the full production from
Aftan, locking in to a contract that will provide the Company with
a positive cash flow and positioning Kennedy Ventures as a Namibian
based producer of tantalite.
Also in July we successfully raised GBP1.4 million through the
issue of 26,666,667 new ordinary shares at 5.25p per share, with
the proceeds to be used towards bringing the Tantalite Valley Mine
back into production, the business into a position of being
operational cash flow positive and conducting due diligence on
other potential tantalite projects.
Post period end management has been focused on the resumption of
mining activities at Tantalite Valley and we were delighted to
announce at the beginning of November 2015 the successful
commissioning of Aftan's tantalite process plant within budget.
This is a major milestone for the Company and we are confident that
sales to our offtaker will commence in the final quarter of
2015.
The mine is now virtually fully staffed, with a full water
supply and has been restocked with additional spares to minimize
any future mechanical downtime. It is expected that new underground
production will be available for processing during the course of
this month.
The first phase of production is estimated to produce 5,000lbs
Ta(2) O(5) per month in Q2 2016 whilst the second phase of the
development will produce around 9,200lbs Ta(2) O(5) per month by
mid-2017 as we ramp up production to an initial target of 10,500
tonnes per month. We are encouraged to note that an independent
study had confirmed that the estimated resource of the mine stands
at 843,000t grading 490ppm Ta(2) O(5) .
Demand for tantalum is driven by the electronics and technology
industries, where tantalum capacitors are used in nearly all
electronic equipment and mobile devices. Furthermore, tantalum is
used to produce super alloys that can be used to manufacture high
temperature cutting tools. Tantalum is a conflict mineral and the
Company remains committed to ensuring that the tantalum produced by
Aftan will be conflict-free.
Financials
The Company recorded a loss before tax of GBP219,000 and had
cash balances of GBP26,000 at the end of the period. Kennedy
Ventures continues to operate on a low-cost basis and incurred
administrative expenses of GBP219,000 during the period. The
Company does not plan to pay a dividend for the twelve months to 30
June 2015.
Board and management team
The Board and management team has been strengthened with the
appointment of Peter Hibberd as Chief Executive Officer and
Caroline McLeod as a Director. Peter is a qualified geologist and
mining engineer with extensive industry experience having held
positions with major mining houses including De Beers and JCI and
has been involved in numerous tantalite projects in South Africa,
Namibia, Mozambique, DR Congo and Colombia. Caroline is a Namibian
national and a lawyer, specialising in labour and mining. She has
been a board member of Aftan for over five years.
Post period end Peter Redmond and Colin Weinberg resigned as
Directors and we would like to thank them both for their hard work
in the re-organisation of the Company.
Outlook
Aside from the ramping up of production at Tantalite Valley,
there appears to be a number of related opportunities within the
broader tantalum field, both in terms of regional sourcing and
downstream processing. We shall continue to investigate these
opportunities for added shareholder value in the medium term.
Tantalite is a valuable commodity in a stable market and we are
confident that Kennedy Ventures, with its long term offtake
agreement in place, is on track to become a leading, highly
profitable producer of tantalum in the near future.
Giles Clarke
Chairman
20 November 2015
GROUP INCOME STATEMENT
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Year to 30 June 2015
Year ended Year ended
30 June 30 June
2015 2014
Notes GBP'000 GBP'000
--------------------------------------------- ----- ---------- ----------
Administrative expenses
Impairment of available for sale investments - (55)
Administrative expenses (219) (131)
Operating loss and loss before tax 6 (219) (186)
Taxation 9 - -
Loss for the year and total comprehensive
loss (219) (186)
Loss attributable to owners of the
Company (199) (186)
Loss attributable to non-controlling
interests (20) -
---------------------------------------------- ----- ---------- ----------
(219) (186)
--------------------------------------------- ----- ---------- ----------
Earnings per share attributable to
owners of the Company
From continuing operations:
Basic and diluted(pence) 10 (0.5)p (0.5)p
The accounting policies and notes form an integral part of these
financial statements.
GROUP STATEMENT OF COMPREHENSIVE INCOME
Year to 30 June 2015
Year ended Year ended
30 June 30 June
2015 2014
GBP'000 GBP'000
--------------------------------------------------- ---------- ----------
Loss for the year (219) (186)
Other comprehensive income:
Items that may be subsequently reclassified
to profit and loss:
Exchange differences on translation of foreign
operations (4) -
Other comprehensive income/(expense) for
the period (4) -
Total comprehensive loss for the year attributable
to equity holders of the parent (223) (186)
The Company has elected to take the exemption under section 408
of the Companies Act 2006 not to present the parent company pro t
and loss account.
The accounting policies and notes are an integral part of these
financial statements
GROUP AND COMPANY STATEMENTS OF FINANCIAL POSITION
AS AT 30 June 2015
GROUP COMPANY
------------------ ------------------
30 June 30 June 30 June 30 June
2015 2014 2015 2014
Notes GBP'000 GBP'000 GBP'000 GBP'000
------------------------------- ----- -------- -------- -------- --------
Non-Current assets
Intangible assets 11 452 - - -
Property, plant and equipment 12 395 - - -
Investment in subsidiaries 13 - - 758 -
Available for sale investments 14 - 22 - 22
847 22 758 22
------------------------------- ----- -------- -------- -------- --------
Current assets
Trade and other receivables 15 13 10 10 10
Cash and cash equivalents 16 26 531 7 531
39 541 17 541
--------
Current liabilities
Trade and other payables 17 98 85 87 85
Short term borrowings 18 142 - 142 -
240 85 229 85
------------------------------- ----- -------- -------- -------- --------
Net assets 646 478 546 478
-------------------------------- ----- -------- -------- -------- --------
Equity
Share capital 19 763 711 763 711
Share premium account 19 7,849 7,673 7,849 7,673
Capital redemption reserve 2,077 2,077 2,077 2,077
Currency translation reserve (4) - - -
Retained earnings (10,182) (9,983) (10,143) (9,983)
-------------------------------- ----- -------- -------- -------- --------
Equity attributable to owners
of the Company 503 478 546 478
Non-controlling interests 143 - - -
-------------------------------- ----- -------- -------- -------- --------
Total equity 646 478 546 478
-------------------------------- ----- -------- -------- -------- --------
These financial statements were approved by the Board of
Directors on 20 November 2015.
The accounting policies and notes form an integral part of these
financial statements
GROUP STATEMENT OF CHANGES IN EQUITY
Year to 30 June 2015
Share Capital Currency Equity
Share premium redemption translation Retained shareholders' Non-controlling
capital account reserve reserve earnings funds interests Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
============== ======== ======== ============== ============ ========= ============= ================ ========
Balance at 1
July 2013 271 7,571 2,077 - (9,820) 99 - 99
Loss for the
year and
total
comprehensive
expense - - - - (186) (186) - (186)
Issue of share
capital 440 110 - - - 550 - 550
Share issue
costs (8) - - - (8) - (8)
Share based
payment
expense - - - - 23 23 - 23
============== ======== ======== ============== ============ ========= ============= ================ ========
Balance at 30
June 2014 711 7,673 2,077 - (9,983) 478 - 478
-------------- -------- -------- -------------- ------------ --------- ------------- ---------------- --------
Comprehensive
income Loss
for the year - - - - (199) (199) (20) (219)
Other
comprehensive
income - - - (4) - (4) - (4)
-------------- -------- -------- -------------- ------------ --------- ------------- ---------------- --------
Total
comprehensive
income - - - (4) (199) (203) (20) (223)
-------------- -------- -------- -------------- ------------ --------- ------------- ---------------- --------
Issue of share
capital 52 176 - - - 228 - 228
Acquisition
of subsidiary
undertakings - - - - - - 163 163
Balance at 30
June 2015 763 7,849 2,077 (4) (10,182) 503 143 646
============== ======== ======== ============== ============ ========= ============= ================ ========
The accounting policies and notes form an integral part of these
financial statements.
COMPANY STATEMENT OF CHANGES IN EQUITY
Year to 30 June 2015
Capital
Share Share redemption Retained
capital Premium reserve earnings Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------------------------ -------- -------- ------------ --------- -------
Balance at 1 July 2013 271 7,571 2,077 (9,820) 99
Loss for the financial period - - - (186) (186)
Issue of share capital 440 110 - - 550
Share issue costs (8) - - (8)
Share based payment expense - - - 23 23
Balance at 30 June 2014 711 7,673 2,077 (9,983) 478
Total comprehensive expense
for the year - - - (160) (160)
Issue of share capital 52 176 - - 228
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Balance at 30 June 2015 763 7,849 2,077 (10,143) 546
The accounting policies and notes form an integral part of these
financial statements.
GROUP AND COMPANY STATEMENTS OF CASH FLOWS
Year to 30 June 2015
GROUP COMPANY
Year ended Year ended Year ended Year ended
30 June 30 June 30 June 30 June
2015 2014 2015 2014
Notes GBP'000 GBP'000 GBP'000 GBP'000
---------------------------------- ------ ----------- ----------- ----------- -----------
OPERATING ACTIVITIES
Net cash used in operating
activities 24 (186) (67) (137) (67)
INVESTING ACTIVITIES
Loans to subsidiary undertakings - - (536) -
Acquisition of subsidiary
undertakings (464) - - -
Net cash used in investing
activities (464) - (536) -
---------------------------------- ------ ----------- ----------- ----------- -----------
FINANCING ACTIVITIES
Net proceeds from share
issues 7 542 7 542
Loans from associates 142 - 142 -
Repayment of loan notes - (150) - (150)
Net cash from financing
activities 149 392 149 392
Net (decrease)/increase
in cash and cash equivalents (501) 325 (524) 325
Exchange rate translation
adjustment (4) - - -
Cash and cash equivalents
at beginning of year 531 206 531 206
Cash and cash equivalents
at end of year 16 26 531 7 531
---------------------------------- ------ ----------- ----------- ----------- -----------
The accounting policies and notes are an integral part of these
financial statements.
NOTES TO THE GROUP FINANCIAL STATEMENTS
Year to 30 June 2015
1 GENERAL INFORMATION
Kennedy Ventures Plc is a company incorporated in the United
Kingdom under the Companies Act 2006. The nature of the Group's
operations and its principal activities are set out in the Strategic
Report and the Directors' Report.
2 STATEMENT OF COMPLIANCE
The financial statements have been prepared and approved by
the Directors in accordance with all relevant IFRSs as issued
by the International Accounting Standards Board ("IASB"), and
interpretations issued by the IFRS Interpretations Committee,
endorsed by the European Union ("EU").
At the date of authorisation of this document, the following
Standards and Interpretations, which have not been applied in
these financial statements, were in issue, but not yet effective:
-- IFRS 9 Financial Instruments
-- IFRS 11 (amendments) Accounting for Acquisitions of Interests
in Joint Operations
-- IFRS 14 Regulatory Deferral accounts
-- IFRS 15 Revenue from Contracts with Customers
-- IAS 16 and IAS 38 (amendments) Clarification of Acceptable
Methods of Depreciation and Amortisation
-- IAS 19 (amendments) Defined Benefit Plans: Employee Contributions
-- IAS 27 (amendments) Equity Method in Separate Financial Statements
-- IAS 1 (amendments) Disclosure initiatives
-- IFRS 10 and IAS 28 (amendments) Sale or Contribution of Assets
between an Investor and its Associate or Joint Venture
-- Annual Improvements to IFRSs: 2010-2012 cycle
-- Annual Improvements to IFRSs: 2011-2013 cycle
-- Annual Improvements to IFRSs: 2012-2014 Cycle
The Directors anticipate that the adoption of the above Standards
and Interpretations in future periods will have little or no
impact on the financial statements of the Company when the relevant
Standards come into effect for future reporting periods, although
they have yet to complete their full assessment in relation
to the impact of IFRS 9 and IFRS 15.
3 Accounting Policies
The principal accounting policies adopted and applied in the
preparation of the Group and Company Financial statements are
set out below.
These have been consistently applied to all the years presented
unless otherwise stated:
BASIS OF ACCOUNTING
The consolidated financial statements are prepared in accordance
with applicable International Financial Reporting Standards
("IFRS") including standards and interpretations issued by the
International Accounting Standards Board as adopted by the EU.
The consolidated financial statements have been prepared on
the basis of historical cost, except for the revaluation of
financial instruments. Cost is based on the fair values of the
consideration given in exchange for assets.
In the application of IFRS management is required to make judgments,
estimates and assumptions about carrying values of assets and
liabilities that are not readily apparent from other sources.
The estimates and associated assumptions are based on historical
experience and various other factors that are believed to be
reasonable under the circumstances, the results of which form
the basis of making judgments. Actual results may differ from
these estimates.
The estimates and underlying assumptions are reviewed on an
ongoing basis. Revisions to accounting estimates are recognised
in the period in which the estimate is revised if the revision
affects only that period, or in the period of the revision and
future periods if the revision affects both current and future
periods.
Judgments made by management in the application of IFRS that
have significant effects on the financial statements and estimates
with a significant risk of material adjustment in the next year
are disclosed, where applicable, in the relevant notes to the
financial statements.
GOING CONCERN
The financial statements have been prepared on the going concern
basis.
The Directors have prepared cash flow forecasts to 31 December
2016, which show that the Company will have sufficient available
cash resources to provide for its future requirements. In preparing
their forecasts the Directors have given due regard to the risks
and uncertainties affecting the business as set out in the Strategic
report.
On this basis, the Directors have a reasonable expectation that
the Company has adequate resources to continue operating for
the foreseeable future. For this reason they continue to adopt
the going concern basis in preparing the Company's financial
statements.
BASIS OF CONSOLIDATION
The Group's consolidated financial statements incorporate the
financial statements of Kennedy Ventures Plc (the "Company")
and entities controlled by the Company (its subsidiaries). Subsidiaries
are entities over which the Group has the power to govern the
financial and operating policies generally accompanying a shareholding
of more than one half of the voting rights. The existence and
effect of potential voting rights that are currently exercisable
or convertible are considered when assessing whether the Group
controls another entity.
Subsidiaries are fully consolidated from the date on which control
is transferred to the Group. They are de-consolidated from the
date that control ceases.
Inter-company transactions, balances and unrealised gains on
transactions between Group companies are eliminated. Profits
and losses resulting from inter-company transactions that are
recognised in assets are also eliminated. Accounting policies
of subsidiaries have been changed where necessary to ensure
consistency with the policies adopted by the Group.
Where necessary, adjustments are made to the financial statements
of subsidiaries to bring the accounting policies used into line
with those used by the Group.
All intra-group transactions, balances, income and expenses
are eliminated on consolidation.
Business Combinations
The acquisition of subsidiaries is accounted for using the acquisition
method under IFRS 3. The acquisition method involves the recognition
at fair value of all identifiable assets and liabilities, including
contingent liabilities of the subsidiary, at the acquisition
date, regardless of whether or not they were recorded in the
financial statements of the subsidiary prior to acquisition.
On initial recognition the assets and liabilities of the subsidiary
are included in the consolidated statement of financial position
at their fair values, which are also used as the bases for subsequent
measurement in accordance with the Group accounting policies.
Goodwill is stated after separating out identifiable intangible
assets. Goodwill represents the excess of the fair value of
the consideration transferred over the fair value of the Group's
share of the identifiable net assets of the acquired subsidiary
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at the date of acquisition. Acquisition costs are expensed as
incurred.
GOODWILL
Goodwill arising on consolidation represents the excess of the
cost of acquisition over the Group's interest in the fair value
of the identifiable assets and liabilities of a subsidiary,
associate or jointly controlled entity at the date of acquisition
and is included as a non-current asset.
Goodwill is tested annually, or more regularly should the need
arise, for impairment and is carried at cost less accumulated
impairment losses. Any impairment is recognised immediately
in the income statement and is not subsequently reversed.
Goodwill is allocated to cash generating units for the purpose
of impairment testing.
On disposal of a subsidiary the attributable amount of goodwill
is included in the determination of the profit or loss on disposal.
In accordance with IAS 36 the Group values Goodwill at the lower
of its carrying value or its recoverable amount, where the recoverable
amount is the higher of the value if sold and its value in use.
In addition IAS38 requires intangible assets with finite useful
lives to follow the same impairment testing as Goodwill including
the use of value in use calculations.
AVAILABLE FOR SALE INVESTMENTS
All investments are classified as available for sale investments
on initial recognition. Investments are initially measured at
fair value plus transaction costs. Subsequently, they are measured
at fair value in accordance with IAS 39. In respect of quoted
investments, this is either the bid price at the period end
date or the last traded price, depending on the convention of
the exchange on which the investment is quoted, with no deduction
for any estimated future selling cost. Unquoted investments
are valued by the directors using primary valuation techniques
such as recent transactions, last price or net asset value.
Gains and losses on measurement are recognised in other comprehensive
income except for impairment losses and foreign exchange gains
and losses on monetary items denominated in a foreign currency,
which are recognised directly in profit or loss. Where the investment
is disposed of or is determined to be impaired the cumulative
gain or loss previously recognised in other comprehensive income
is reclassified to profit or loss.
The Company assesses at each period end date whether there is
any objective evidence that a financial asset or group of financial
assets classified as available for sale has been impaired. An
impairment loss is recognised if there is objective evidence
that an event or events since initial recognition of the asset
have adversely affected the amount or timing of future cash
flows from the asset. A significant or prolonged decline in
the fair value of a security below its cost shall be considered
in determining whether the asset is impaired.
When a decline in the fair value of a financial asset classified
as available for sale has been previously recognised in other
comprehensive income and there is objective evidence that the
asset is impaired, the cumulative loss is removed from other
comprehensive income and recognised in profit or loss. The loss
is measured as the difference between the cost of the financial
asset and its current fair value less any previous impairment
The Company determines the fair value of its Investments based
on the following hierarchy:
LEVEL 1 - Where financial instruments are traded in active financial
markets, fair value is determined by reference to the appropriate
quoted market price at the reporting date. Active markets are
those in which transactions occur in significant frequency and
volume to provide pricing information on an on-going basis.
LEVEL 2 - If there is no active market, fair value is established
using valuation techniques, including discounted cash flow models.
The inputs to these models are taken from observable market
data including recent arm's length market transactions, and
comparisons to the current fair value of similar instruments;
but where this is not feasible, inputs such as liquidity risk,
credit risk and volatility are used
LEVEL 3 - Valuations in this level are those with inputs that
are not based on observable market data.
foreign currencies
The individual financial statements of each group company are
presented in the currency of the primary economic environment
in which it operates (its functional currency). For the purpose
of the Group financial statements, the results and financial
position of each group company are expressed in Pounds Sterling,
which is the functional currency of the Company, and the presentation
currency for the Group financial statements.
In preparing the financial statement of the individual companies,
transactions in currencies other than the entity's functional
currency (foreign currencies) are recorded at the rates of exchange
prevailing on the dates of the transactions. At each year end
date, monetary assets and liabilities that are denominated in
foreign currencies are retranslated at the rates prevailing
on the year end date. Non-monetary items carried at fair value
that are denominated in foreign currencies are translated at
the rates prevailing at the date when the fair value was determined.
Non-monetary items that are measured in terms of historical
cost in a foreign currency are not retranslated.
Exchange differences arising on the settlement of monetary items,
and on the retranslation of monetary items, are included in
the income statement. Exchange differences arising on the retranslation
of non-monetary items carried at fair value are included in
profit or loss for the period, except for differences arising
on the retranslation of non-monetary items in respect of which
gains and losses are recognised directly in equity. For such
non-monetary items, any exchange component of that gain or loss
is also recognised directly in equity.
For the purpose of presenting Group financial statements, the
assets and liabilities of the Group's foreign operations are
translated at exchange rates prevailing on the year end date.
Income and expense items are translated at the average exchange
rates for the period. Exchange differences arising are classified
as equity and transferred to the Group's translation reserve.
Such translation differences are recognised as income or as
expenses in the period in which the operation is disposed of.
taxation
The tax currently payable is based on taxable profit or loss
for the period. Taxable profit or loss differs from net profit
or loss as reported in the income statement because it excludes
items of income or expense that are taxable or deductible in
other years and it further excludes items that are never taxable
or deductible. The Company's liability for current tax is calculated
using tax rates that have been enacted or substantively enacted
by the balance sheet date.
Deferred tax is the tax expected to be payable or recoverable
on differences between the carrying amounts of assets and liabilities
in the financial statements and the corresponding tax bases
used in the computation of taxable profit, and is accounted
for using the balance sheet liability method. Deferred tax liabilities
are generally recognised for all taxable temporary differences
and deferred tax assets are recognised to the extent that it
is probable that taxable profits will be available against which
deductible temporary differences can be utilised. Such assets
and liabilities are not recognised if the temporary difference
arises from goodwill or from the initial recognition (other
than in a business combination) of other assets and liabilities
in a transaction that affects neither the tax profit nor the
accounting profit.
The carrying value of deferred tax assets is reviewed at each
balance sheet date and reduced to the extent that it is no longer
probable that sufficient taxable profits will be available to
allow all or part of the deferred tax asset to be recovered.
Deferred tax is calculated at the tax rates that are expected
to apply in the period when the liability is settled or the
asset is realised based on tax laws and rates that have been
enacted at the balance sheet date. Deferred tax is charged or
credited in the income statement, except when it relates to
items charged or credited directly to equity, in which case
the deferred tax is also dealt with in equity.
Deferred tax assets and liabilities are offset when there is
a legally enforceable right to set off current tax assets against
current tax liabilities and when they relate to income taxes
levied by the same taxation authority and the Company intends
to settle its current tax assets and liabilities on a net basis.
PROPERTY, PLANT AND EQUIPMENT
Property, Plant and equipment are recorded at cost, less depreciation,
less any amount adjustments for impairment, if any.
Significant improvements are capitalised, provided they qualify
for recognition as assets. The costs of maintenance, repairs
and minor improvements are expensed when incurred.
Tangible assets retired or withdrawn from service are removed
from the balance sheet together with the related accumulated
depreciation. Any profit or loss resulting from such an operation
is included in the income statement.
Tangible and intangible assets are depreciated on straight-line
method based on the estimated useful lives from the time they
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are put into operations, so that the cost diminished over the
lifetime of consideration to estimated residual value as follows:
Land and buildings - Over 15 years
Plant and equipment- Between 5 and 10 years
IMPAIRMENT OF PROPERTY, PLANT & EQUIPMENT AND INTANGIBLE ASSETS
EXCLUDING GOODWILL
Assets that have an indefinite useful life are not subject to
amortisation but are reviewed for impairment annually and where
there are indications that the carrying value may not be recoverable.
An impairment loss is recognised for the amount by which the
carrying value exceeds the recoverable amount.
TRADE RECEIVABLES, loans and other receivables
Trade and other receivables are non-derivative financial assets
with fixed or determinable payments that are not quoted in an
active market. They are included in current assets, except for
those with maturities greater than 12 months after the balance
sheet date, which are classified as non-current assets and are
measured at amortised cost less an allowance for any uncollectible
amounts. The net of these balances are classified as "trade
and other receivables" in the balance sheet.
Trade and other receivables are assessed for indicators of impairment
at each balance sheet date and are impaired where there is objective
evidence that the recovery of the receivable is in doubt.
Objective evidence of impairment could include significant financial
difficulty of the customer, default on payment terms or the
customer going into liquidation.
The carrying amount of trade and other receivables is reduced
through the use of an allowance account. When a trade or other
receivable is considered uncollectible, it is written off against
the allowance account. Subsequent recoveries of amounts previously
written off are credited against the allowance account. Changes
in the carrying amount of the allowance account are recognised
in the income statement.
Loans and receivables, as categorised above, are measured at
amortised cost using the effective interest method less any
impairment. Interest income is recognised by applying the effective
interest rate, except for short-term receivables when the recognition
of interest would be immaterial.
CASH AND CASH EQUIVALENTS
Cash and cash equivalents include cash at bank and in hand,
deposits at call with banks, other short-term highly liquid
investments with original maturity at acquisition of three months
or less that are readily convertible to cash, net of bank overdrafts.
For the purpose of the cash flow statement, cash and cash equivalents
consist of the definition outlined above.
FINANCIAL LIABILITIES
All non-derivative financial liabilities are classified as other
financial liabilities and are initially measured at fair value,
net of transaction costs. Other financial liabilities are subsequently
measured at amortised cost using the effective interest rate
method. Other financial liabilities consist of borrowings and
trade and other payables.
Financial liabilities are classified as current liabilities
unless the Company has an unconditional right to defer settlement
of the liability for at least 12 months after the balance sheet
date.
OTHER FINANCIAL LIABILTIES, BANK AND SHORT TERM BORROWINGS
Other financial liabilities, as categorised above, are initially
measured at fair value, net of transaction costs. Other financial
liabilities are subsequently measured at amortised cost using
the effective interest method, with interest expense recognised
on an effective yield basis. Other financial liabilities are
classified as current liabilities unless the Company has an
unconditional right to defer settlement of the liability for
at least 12 months after the balance sheet date.
EQUITY INSTRUMENTS INCLUDING SHARE CAPITAL
Equity instruments consist of the Company's ordinary share capital
and are recorded at the proceeds received, net of direct issue
costs.
SEGMENTAL ANALYSIS
Under IFRS 8 operating segments are considered to be components
of an entity about which separate financial information is available
that is evaluated regularly by the chief operating decision
maker in deciding how to allocate resources and assessing performance.
The Company's chief operating decision maker is the Board of
Directors. At present, and for the period under review, the
Company's sole reporting segment is the tantalite mining operation
in Namibia.
4 CRITICAL ACCOUNTING JUDGEMENTS AND ESTIMATIONS
In the application of the Group's accounting policies, which
are described in note 3, the Directors are required to make
judgements, estimates and assumptions that affect the application
of policies and reported amounts of assets and liabilities,
income and expenses. The estimates and associated assumptions
are based on historical experience and various other factors
that are believed to be reasonable under the circumstances,
the results of which form the basis of making the judgements
about carrying values of assets and liabilities that are not
readily apparent from other sources. Actual results may differ
from these estimates.
The carrying value of assets is determined based on their fair
value as supported by a management valuation less costs to sell.
This estimate and assumption can present a significant risk
of causing a material adjustment to the carrying amount of assets
and liabilities.
The valuation of the options involves making a number of critical
estimates relating to price volatility, future dividend yields,
expected life of the options and forfeiture rates. These assumptions
have been described in more detail in note 15. The estimate
and assumptions could materially affect the Income Statement.
5 SEGMENTAL REPORTING
The business consists of a single investment activity being
the tantalite mining operation in Namibia. As a result the segmental
financial information is the same as that set out in the Statement
of Comprehensive Income, Statement of Financial Position, Statement
of Changes in Equity and the Statement of Cash Flows.
6 OPERATING LOSS
Year ended Year ended
30 June 30 June
2015 2014
GBP'000 GBP'000
---------------------------------------------- ---------- ----------
Loss for the period has been arrived at after
charging:
Staff costs as per Note 8 below 47 40
Auditors remuneration 15 9
7 auditors' remuneration
The analysis of auditors' remuneration is as follows:
Year ended Year ended
30 June 30 June
2015 2014
GBP'000 GBP'000
----------------------------------------------- ----------- -----------
Fees payable to the Group's auditors for the
audit of the Group's annual accounts 15 8
Total audit fees 15 8
Fees payable to the Group auditor and their
associates for other services to the Group:
Tax services 1 1
16 9
--------------------------------------------------- ----------- -----------
8 staff costs
The average monthly number of employees (including executive
directors) for the continuing operations was:
Year ended Year ended
30 June 30 June
2015 2014
Number Number
------------------------------------------------ ----------- -----------
Group total staff 5 4
GBP'000 GBP'000
------------------------------------------------ ----------- -----------
Wages and salaries 20 37
Directors' compensation for loss of office 24 -
Social security costs 3 3
47 40
---------------------------------------------------- ----------- -----------
Directors' emoluments
An analysis of the directors' emoluments and pension entitlements
and their interest in the share capital of the Company is contained
in the Report of the Board on remuneration accompanying these
financial statements.
9 taxation
Year ended Year ended
30 June 30 June
2015 2014
GBP'000 GBP'000
--------------------------------------------------- ----------- -----------
(MORE TO FOLLOW) Dow Jones Newswires
November 23, 2015 02:00 ET (07:00 GMT)
Loss on continuing operations before tax (219) (186)
------------------------------------------------------- ----------- -----------
Tax at the UK corporation tax rate of 20% (2014:
21.5%) (44) (40)
Effects of:
Effect of unrealised investment losses not
deductible for tax purposes - 12
Expenses not deductible for tax purposes 5 2
Unutilised tax losses carried forward 39 26
Tax charge for period - -
------------------------------------------------------- ----------- -----------
The total taxation charge in future periods will be affected
by any changes to the corporation tax rates in force in the
countries in which the Group operates.
10 LOSS PER SHARE
The calculation of basic loss per share is based on the following
data:
Year ended Year ended
30 June 30 June
2015 2014
GBP'000 GBP'000
---- ------------------------------------------------ ---------- ----------
Loss for the financial period (219) (186)
Loss for the year attributable to owners of
the Company (199) (186)
Weighted average number of ordinary shares
in issue for basic and fully diluted earnings* 43,084,226 38,791,151
----------------------------------------------------- ---------- ----------
LOSS PER SHARE (PENCE PER SHARE)
BASIC AND FULLY DILUTED*:
- from continuing and total operations (0.5) (0.5)
---------------------------------------- ------ ------
The Company has outstanding warrants and options as disclosed
under Note 20 which may be dilutive in future periods. The effect
in respect of the current year would have been anti-dilutive
(reducing the loss per share) and accordingly is not presented.
INTANGIBLE ASSETS
11
Mining
Goodwill licences 2015
GBP'000 GBP'000 GBP'000
---------------------------------- -------- --------- -------
At 1 July 2013 and 2014 - - -
Arising on acquisition of African
Tantalum (Pty) Ltd 442 10 452
---------------------------------------- -------- --------- -------
At 30 June 2015 442 10 452
---------------------------------------- -------- --------- -------
During the year goodwill has arisen on the acquisition of
Namibia Tantalite Investments (Pty) Ltd ("NTI") and Tameka Shelf
Company Four (Pty) Ltd ("TSC") by African Tantalum (Pty) Ltd
("Aftan") and on the acquisition of African Tantalum (Pty) Ltd by
the Company.
The Directors have reviewed the carrying value of Goodwill at 30
June 2015 and consider that no impairment provision is required.
The Impairment review involved calculating the NPV of the Group's
cash generating assets. The NPV calculation involved using the
discounted cash flow forecast model based on current and expected
production results. As a result of carrying out this impairment
testing review the Directors considered that there was no need for
any impairment of the carrying value of the goodwill.
The Directors continue to review goodwill on an on-going basis
and where necessary in future periods will request external
valuations to further support the valuation basis.
12 PROPERTY, PLANT AND EQUIPMENT
Plant &
Land & buildings equipment Total
GBP'000 GBP'000 GBP'000
----------------------------------- ---------------- ---------- -------
Cost
At 1 July 2013 and 2014 - - -
On acquisition of African Tantalum
(Pty) Ltd 125 270 395
---------------------------------------- ---------------- ---------- -------
Cost at 30 June 2015 125 270 395
---------------------------------------- ---------------- ---------- -------
Depreciation
At 1 July 2013 and 2014 - - -
Charge for the year - - -
----------------------------------- ---------------- ---------- -------
Depreciation at 30 June 2015 - - -
----------------------------------- ---------------- ---------- -------
Net book value at 30 June 2015 125 270 395
---------------------------------------- ---------------- ---------- -------
Net book value at 30 June 2014 - - -
---------------------------------------- ---------------- ---------- -------
On acquisition of African Tantalum (Pty) Ltd the Company carried
out a review of the fair value of each of the separately
identifiable assets within property, plant and equipment. The above
table includes those assets at their revalued amounts.
13 INVESTMENT IN subsidiarY UNDERTAKINGS
The Company invests in its subsidiary and associated undertakings
2015 2014
COMPANY GBP'000 GBP'000
-------------------------------------------------------------- ------------- ------------- ----------------
Cost and net book value
At 1 July - -
Acquisition of African Tantalum
(Pty) Ltd 686 -
Additional advances to African
Tantalum (Pty) Ltd 72 -
As at 30 June 758 -
-------------------------------------------------------------- ----------------- ------------- ----------------
All principal subsidiaries of the Group are consolidated into
the financial statements. At 30 June 2015 the subsidiaries were
as follows:
Subsidiary undertakings Country Principal activity Holding %
of registration
--------------------------------- -------------------- ---------------------------- ------------ ---------
African Tantalum (Pty) Intermediate holding Ordinary
Ltd Namibia company shares 75
*Namibia Tantalite Investments Ordinary
(Pty) Ltd Namibia Tantalite mining shares 60
*Tameka Shelf Company Ordinary
Four (Pty) Ltd Namibia Mining licence holder shares 60
---------------------------------- ------------------- -------------------------------- ------------ ---------
*Held through subsidiary undertaking.
The following table summarises the movement in the investments
made by the Company in subsidiary undertakings, as above:
COMPANY 2015 2014
GBP'000 GBP'000
At 1 July - -
Shares issued in respect of acquisition
of Aftan 222 -
Loan to Aftan 536 -
----------------------------------------- -------- --------
As at 30 June 758 -
----------------------------------------- -------- --------
14 AVAILABLE-FOR-SALE INVESTMENTS
GROUP COMPANY
2015 2014 2015 2014
GBP'000 GBP'000 GBP'000 GBP'000
------------------------------- --------- --------- ------------ -----------
Balance brought forward 22 77 22 77
Disposals (22) - (22) -
Provision for impairment - (55) - (55)
Balance carried forward - 22 - 22
------------------------------------ --------- --------- ------------ -----------
Categorised as:
Level 3 - Unquoted investments - 22 - 22
------------------------------------ --------- --------- ------------ -----------
15 TRADE AND OTHER RECEIVABLES
GROUP COMPANY
(MORE TO FOLLOW) Dow Jones Newswires
November 23, 2015 02:00 ET (07:00 GMT)
2015 2014 2015 2014
GBP'000 GBP'000 GBP'000 GBP'000
------------------------------- ------- ------- --------- --------
Other receivables 7 5 4 5
Prepayments and accrued income 6 5 6 5
13 10 10 10
------------------------------------ ------- ------- --------- --------
The Directors consider the carrying amount of intercompany loans
and other receivables approximates to their fair value.
16 CASH AND CASH EQUIVALENTS
GROUP COMPANY
2015 2014 2015 2014
GBP'000 GBP'000 GBP'000 GBP'000
-------------------------- ----------- ----------- ------------ -----------
Cash and cash equivalents 26 531 7 531
------------------------------- ----------- ----------- ------------ -----------
Credit risk
The Company's principal financial assets are bank balances and
cash and other receivables, which represent the Company's maximum
exposure to credit risk in relation to financial assets. The credit
risk on liquid funds is limited because the counterparties are
banks with high credit ratings assigned by international credit
rating agencies.
The Directors consider the carrying amount of cash and cash
equivalents approximates to their fair value.
17 TRADE AND OTHER PAYABLES
GROUP COMPANY
2015 2014 2015 2014
GBP'000 GBP'000 GBP'000 GBP'000
--------------------- ----------- ----------- ------------ -----------
Trade payables 44 46 36 46
Other payables 3 22 - 22
Accruals 51 17 51 17
-------------------------- ----------- ----------- ------------ -----------
98 85 87 85
-------------------------- ----------- ----------- ------------ -----------
The Directors consider the carrying amount of trade payables
approximates to their fair value.
18 SHORT TERM BORROWINGS
GROUP COMPANY
2015 2014 2015 2014
GBP'000 GBP'000 GBP'000 GBP'000
------------------------------------ ----------- ----------- ------------ -----------
Westleigh Investments Holdings
Ltd loan 142 - 142 -
142 - 142 -
----------------------------------------- ----------- ----------- ------------ -----------
On 13 November 2014 the Company agreed a GBP200,000 loan facility,
under which the Company had drawn down GBP142,000 at the year
end. See note 26, Related party transactions, for further details.
Subsequent to the year end, in July 2015, the loan was repaid,
GBP42,000 in cash and GBP100,000 through the issue of shares.
19 share capital AND SHARE PREMIUM
Number of Nominal value Share premium
shares GBP'000 GBP'000
ISSUED AND FULLY PAID:
At 30 June 2013, shares of
1p each 27,098,000 271 7,571
Share issue 44,000,000 440 110
Share issue expenses - - (8)
At 30 June 2014, shares of
1p each 71,098,000 711 7,673
Share issues 5,211,748 52 176
At 30 June 2015 76,309,748 763 7,849
---------------------------------- ----------- -------------- --------------
Share issues
On 2 February 2015, the Company issued 4,523,113 ordinary shares
of 1p each at 4.9p per share in respect of the acquisition of
African Tantalum (Pty) Ltd.
On 25 March 2015 the Company issued 688,635 ordinary shares
of 1p each at par on the exercise of options.
20 Share-based payments
Equity-settled share option scheme
The Company operates share-based payment arrangements to incentivise
directors by the grant of share options. Equity-settled share-based
payments are measured at fair value (excluding the effect of
non-market based vesting conditions) at the date of grant. The
fair value determined at the grant date of the equity-settled
share-based payments is expensed on a straight-line basis over
the vesting period, based on the Company's estimate of shares
that will eventually vest and adjusted for the effect of non-market
based vesting conditions.
On 25 March 2014 the Board resolved to grant options over up
to 8,531,760 new ordinary shares exercisable at 1.25p per share
and granted 1,599,705 such options each to G Clarke and N Harrison.
The options are exercisable at any time up to 25 March 2018.
The significant inputs to the model in respect of the options
granted were as follows:
Share price at date of 1.50 pence
grant 1.25 pence
Exercise price 3,199,410
No. of share options 50%
Expected volatility 4 years
Option life 2.5%
Risk free rate 0.517 pence
Calculated fair value
per share
The total share-based payment expense recognised in the income
statement for the year ended 30 June 2015 in respect of the share
options granted was GBPnil (2014: GBP22,582).
Number of
options Exercised Number of
at Issued in in the options at Exercise Vesting Expiry
1 July 2014 the year year 30 June 2015 price Date date
------------- ---------- ---------- -------------- --------- ----------- -----------
3,199,410 - - 3,199,410 1.25p 25.03.2014 25.03.2018
------------- ---------- ---------- -------------- --------- ----------- -----------
21 ACQUISITION OF SUBSIDIARY UNDERTAKINGS
On 2 February 2015 the Company completed the acquisition of
75% of African Tantalum (Pty) Ltd, which simultaneously completed
its acquisition of 60% of Namibia Tantalite Investments (Pty)
Ltd ("NTI") and Tameka Shelf Company Four (Pty) Ltd. The net
assets acquired in these two transactions are summarised below:
Book Fair value Fair
Net assets acquired: value adjustments value
GBP'000 GBP'000 GBP'000
-------------------------------------- --------- ------------- --------
Property, plant and equipment - 395 395
Intangible assets - 10 10
Trade and other receivables 2 - 2
2 405 407
Non-controlling interest (163)
Goodwill 442
------------------------------------------- --------- ------------- --------
Total consideration 686
------------------------------------------- --------- ------------- --------
Satisfied by:
Cash 454
Issue of 4,523,113 shares at 4.9p
per share 221
Directly attributable costs 11
------------------------------------------- --------- ------------- --------
686
------------------------------------------- --------- ------------- --------
22 FINANCIAL INSTRUMENTS
The Group's financial instruments comprise borrowings, cash
and various items, such as trade receivables and trade payables
that arise directly from its operations. The main purpose of
these financial instruments is to raise finance for the Group's
operations.
FINANCIAL ASSETS BY CATEGORY
The IAS 39 categories of financial assets included in the Statement
of financial position and the headings in which they are included
are as follows:
2015 2014
GBP'000 GBP'000
----------------------------------------------- ------------ -----------
Financial assets:
Cash and cash equivalents 26 531
(MORE TO FOLLOW) Dow Jones Newswires
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Available for sale investments - 22
Loans and receivables 7 5
------------------------------------------------ --- ------------ -----------
33 558
---------------------------------------------------- ------------ -----------
FINANCIAL LIABILITIES BY CATEGORY
The IAS 39 categories of financial liability included in the
Statement of financial position and the headings in which they
are included are as follows:
2015 2014
GBP'000 GBP'000
---------------------------------------------------- ----------------- ---------
Financial liabilities at amortised cost:
Trade and other payables 47 68
Short term borrowings 142 -
---------------------------------------------------- ----------------- ---------
189 68
--------------------------------------------------------- ----------------- ---------
The following table details the Company's remaining contractual
maturity for its non-derivative financial liabilities with agreed
repayment periods. The table has been drawn up based on the
undiscounted cash flows of financial liabilities based on the
earliest repayment date on which the Company can be required
to pay. The table includes both interest and principal cash
flows. To the extent that interest flows are floating rate,
the undiscounted amount is derived from the interest rate curves
at the balance sheet date. The contractual maturity is based
on the earliest date on which the Company may be required to
pay.
Less than 3 months Over 5
1 month 1-3 months to 1 year 1-5 years years
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------------------- --------- ---------- -------------- --------- ---------
30 June 2015
Non-interest bearing:
Trade and other payables - 47 - - -
Short term borrowings - 142 - - -
------------------------------ --------- ---------- -------------- --------- ---------
30 June 2014
Non-interest bearing:
Trade and other payables - 68 - - -
Short term borrowings - - - - -
------------------------------ --------- ---------- -------------- --------- ---------
23 RISK MANAGEMENT OBJECTIVES AND POLICIES
The Group is exposed to a variety of financial risks which result
from both its operating and investing activities. The Group's
risk management is coordinated by the Board of Directors, and
focuses on actively securing the Group's short to medium term
cash flows by minimising the exposure to financial markets.
The main risks the Group are exposed to through its financial
instruments and the operations of the Group are credit risk,
foreign currency risk, liquidity risk and market price risk.
These risks are managed by the Group's finance function together
with the Board of Directors.
Capital risk management
The Group's objectives when managing capital are:
* to safeguard the Group's ability to continue as a
going concern, so that it continues to provide
returns and benefits for shareholders;
* to support the Group's growth; and
* to provide capital for the purpose of strengthening
the Group's risk management capability.
The Group actively and regularly reviews and manages its capital
structure to ensure an optimal capital structure and equity
holder returns, taking into consideration the future capital
requirements of the Group and capital efficiency, prevailing
and projected profitability, projected operating cash flows,
projected capital expenditures and projected strategic investment
opportunities. Management regards total equity as capital and
reserves, for capital management purposes.
Credit risk
The Group's financial instruments, which are subject to credit
risk, are cash and cash equivalents. The credit risk for cash
and cash equivalents is considered negligible since the counterparties
are reputable financial institutions.
The Group's maximum exposure to credit risk is GBP26,000 (2014:
GBP531,000) comprising cash and cash equivalents.
Liquidity risk
Liquidity risk arises from the possibility that the Group might
encounter difficulty in settling its debts or otherwise meeting
its obligations related to financial liabilities. The Group
manages this risk through maintaining a positive cash balance
and controlling expenses and commitments. The Directors are
confident that adequate resources exist to finance current operations.
Foreign Currency risk
The Group undertakes transactions denominated in foreign currencies.
Hence, exposures to exchange rate fluctuations arise. Following
the acquisition of African Tantalum (Pty) Ltd. Ltd, the Group's
major activity is now in Namibia, bringing exposure to the exchange
rate fluctuations of GBP/GBP Sterling with the Namibian Dollars
and South African Rand, the currencies in which most of the
operating costs are denominated. At the year end the value of
assets denominated in these currencies was such that the resulting
exposure to exchange rate fluctuations was not material to the
Group's operations. Going forwards the Group is exposed to the
US$ as it has entered into an off-take agreement for the major
part of its production, priced in US$.
Exchange rate exposures are managed within approved policy parameters.
The Group has not entered into forward exchange contracts to
mitigate the exposure to foreign currency risk.
The Directors consider the assets most susceptible to foreign
currency movements to be the Investment in Subsidiaries. Although
these investments are denominated in Namibian Dollars their
value is dependent on the global market value of the available
Tantalite resources.
Market Price risk
Going forwards the Group's exposure to market price risk mainly
arises from potential movements in the market price of Tantalite.
The Group is managing this price risk by completing a fixed
price off-take agreement in respect of the major part of its
planned production.
24 NOTES TO THE CASHFLOW STATEMENT
GROUP COMPANY
2015 2014 2015 2014
GBP'000 GBP'000 GBP'000 GBP'000
--------------------------------------- ---------- ---------- -------- --------
Operating loss (219) (186) (160) (186)
Fair value movements in investments - 55 - 55
Share based payment expense - 23 - 23
-------------------------------------------- ---------- ---------- -------- --------
Operating cash flows before movement
in working capital (219) (108) (160) (108)
(Increase)/decrease in receivables (3) 15 - 15
Increase in payables 36 26 23 26
-------------------------------------------- ---------- ---------- -------- --------
Net cash used in operating activities (186) (67) (137) (67)
-------------------------------------------- ---------- ---------- -------- --------
Cash and cash equivalents (which are presented as a single class
of asset on the face of the balance sheet) comprise cash at bank
and other short term, highly liquid investments with a maturity of
three months or less.
25 EVENTS AFTER THE REPORTING PERIOD
On 8 July 2015 the Company announced that it had raised GBP1.4
million before expenses through the placing of 26,666,667 new
ordinary shares in the Company at a price of 5.25p per share.
The proceeds of the placing will be used to bring the Tantalite
Valley Mine back into production, to conduct due diligence on
other potential tantalite projects, and for investment and general
working capital purposes.
On 16 July 2015, under the Company's option scheme 1,599,705
options were granted, each to Giles Clarke and Nick Harrison,
exercisable at 1.25p per share, and 1,066,470 options were granted
to each of Peter Redmond and Colin Weinberg on the same terms.
It was agreed that in respect unsecured loan from Westleigh
Investment Holdings Limited ("WIHL") for GBP142,000, GBP100,000
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