TIDMKENV
RNS Number : 3779E
Kennedy Ventures PLC
09 February 2018
9 February 2018
Kennedy Ventures plc
Kennedy Ventures plc
Final Results for the Year Ended 30 June 2017
Kennedy Ventures plc ("Kennedy Ventures" or "the Company), the
AIM quoted investment company, who through its stake in African
Tantalum (Pty) Limited ("Aftan") has an interest in the Namibia
Tantalite Investment Mine ("NTI" or "the Mine") in Namibia, is
pleased to announce its audited final results for the full year
ended 30 June 2017 ("the Period").
Highlights
Operational
-- Appointment of Larry F. Johnson as Chief Executive Officer in January 2017
-- Successful visit to the Mine by a global North American
leading consumer and end user of tantalum (the "Customer") as well
as Namibian government officials in March 2017. This resulted in,
Post Period, the signing of a multiyear supply agreement with the
Customer
-- To ensure long term value creation in line with the
Customer's requirements, Aftan initiated a plant upgrade programme.
The programme was designed to improve the overall performance of
the Mine, generate improved utilisation rates, improve recovery
rates and to produce higher quality tantalum shipments
-- Improved mining face availability and flexibility in ore
sourcing as a direct result of more consistent blasting and the
generation of new adits in line with the mine plan under a new
explosive programme
Financial
At 30 June 2017:
-- Successfully raised a total of GBP3.25 million in two
separate placings in July 2016 and January 2017, the proceeds of
which were used to upgrade the plant and operation
-- The group's loss for the year amounted to GBP1.1 million
-- Cash at bank amounted to approximately GBP364k and, in
addition to the investment in the Mine, property plant &
equipment and other intangible assets amounted in aggregate to
GBP2.55 million
-- Overall Net Assets at 30 June 2017 amounted to GBP3.54
million, up from 30 June 2016 balance of GBP1.41 million
Post Period
-- Successfully raised GBP3.75 million in July 2017 through a
placing with the net proceeds being used on further upgrades and
execution of drilling programme
-- Positive cost savings were achieved by reducing variable cost
contracts in bulk diesel, security, safety and transportation,
working extensively with local Namibian vendors as well as with
local governments while increasing logistic efficiencies using both
air and ocean shipments
-- Third and fourth shipments sent to the Customer with further
shipments due in line with planned ramp up schedule
-- Initial discussions with a second and third potential customer
Outlook
-- Continued positive progress in extracting the full value from our interest in Aftan
-- Continued core drilling over total mineralisation
-- Further shipments to the Customer as Aftan continues to work
to meet the production ramp up schedule
-- Continued discussions with potential additional customers
-- The Company intends to continue to consider further growth
opportunities in line with our investing policy
The Company is pleased to advise that, Aftan has strengthened
its finance function with the appointment of John Fahy as Interim
Chief Financial Officer. John joins Aftan with 40 years of
cross-sector experience, most recently as Managing Director of
Nampak, the largest packaging company in South Africa. John has
held various financial auditing consulting positions and was also a
Director and Owner of National Spice Group which was later sold to
the Bidvest Group.
Additionally, Kennedy Ventures is at an advanced stage in the
appointment of a Technical Director to the Board and looks forward
to updating shareholders with further details in due course.
In line with the Company's evolution, we are proposing to change
the Company's name to Kazera Global plc and will seek to ratify
this at the next AGM which will take place at [TIME] on 5 March
2018 at the offices of Camarco, 107 Cheapside, London, EC2V 6DN.
The Board has also decided to adopt a new investing policy which
better reflects the directors' focus on resource ventures in
Africa. The Board has a wealth of experience across the continent
and, following the successful ramp up of operations at NTI, is
confident that the Company can access further opportunities in a
range of commodities.
Larry Johnson, Chief Executive Officer of Kennedy, said:
"Aftan, with Kennedy's supervision, has taken significant
positive strides during the Period. Developing the relationship
with the leading global end user and subsequently signing a
multiyear supply agreement is a major milestone and, this,
accompanied by the successful upgrade of the plant, ensured that
the Mine started to deliver some of the highest quality tantalum in
the world.
Important work was also carried out with Namibian authorities,
developing strong, long term relationships that has resulted in
employing extended working shifts.
It is an exciting time for the Company as Aftan continues to
ramp up production and meet the world class quality requirements of
the Customer and the board and I would like to sincerely thank our
shareholders for their patience and continued support. We look
forward to the rest of 2018 with confidence."
Posting of accounts
The Report and Accounts for the period ended 30th June 2017 will
shortly be available on the Group's website and will be sent to
registered shareholders by post shortly together with notice of the
Group's AGM.
For further information on the Company, visit:
www.kvplc.com:
Kennedy Ventures plc (c/o Camarco)
Larry Johnson (CEO) Tel: +44 (0)203 757 4997
finnCap (Nominated Adviser and Joint Tel: +44 (0)20 7220 0500
Broker)
Christopher Raggett / Scott Mathieson
/ Anthony Adams (corporate finance)
Simon Johnson (corporate broking)
Shore Capital (Joint Broker) Tel: +44 (0) 207 408 4090
Mark Percy / Toby Gibbs (corporate
finance)
Jerry Keen (corporate broking)
Camarco (PR) Tel: +44 (0) 203 757 4997
Gordon Poole / James Crothers /
Monique Perks
CEO STATEMENT
YEAR TO 30 June 2017
The Period, and the months following to date, have seen
significant changes at the operational level at the Mine which have
reshaped and refocussed deliverables of our world class, high grade
product.
The potential of the Mine and wider licence package is
significant, and was a fundamental reason for my joining Kennedy
Ventures as CEO in January 2017. My initial focus was to realise
this potential through significant plant upgrades; optimising the
operation to enable the production of world class grade product
that would facilitate the negotiation and execution of a multiyear
supply agreement with an end user. Following a visit to the site in
May 2017, a multiyear supply agreement was signed post period with
a North American leading tantalum consumer and end user,
guaranteeing ongoing production purchase and protecting against
market volatility.
With the support of our shareholders we successfully raised
funds of GBP3.25 million in two separate placings in July 2016 and
January 2017 leading to a series of personnel and equipment site
upgrades as well as the implementation of new controls and quality
management systems, resulting in improved efficiencies at the plant
and quality output of our product. These upgrades included
installation and refurbishment of new crushers, new conveyors,
multiple James tables, thickener installation and new water
management systems. Aftan has also implemented a new explosives
programme with more consistent blasting and the generation of new
adits, which has resulted in improved mining face availability and
flexibility. Moreover, Aftan has improved fixed costs and working
capital by driving out upfront cash payments and sourcing fixed
price agreements while working towards more localisation within
Namibia.
These plant improvements have resulted in our shipments being of
very high quality ensuring Aftan can consistently deliver shipments
of the required high grade 48% Ta(2) O(5) , one of the highest
grades reported from Tantalum mines globally.
The tantalum market, by its very nature, is opaque but what we
are seeing is an increase in global demand for high quality, high
grade, conflict free tantalum which Aftan supplies. Accordingly,
Kennedy is in discussions with additional consumers, one of which
has already conducted a physical audit of the Mine and discussions
have begun on potentially supplying multiple minerals found in the
mine.
Financials
The Company has cash and cash equivalents of approximately
GBP364k at the end of the Period compared to GBP60k in 2016 and has
net assets of GBP3,537k compared to GBP1,405k in 2016. The group
recorded a loss before tax of GBP1,098k compared to GBP788k in
2016. The Company does not plan to pay a dividend for the twelve
months to 30 June 2017. Post Period, the Company completed an
additional fundraise, raising gross proceeds of GBP3.75 million in
July 2017 which are being used for further plant upgrades and
execution of a new drilling program.
Outlook
As the Company looks to the future, and reflecting upon its
Namibian roots, the Board will be recommending to shareholders at
the AGM to change the name of Kennedy Ventures PLC to Kazera Global
PLC, subject to ratification, to underline a new chapter for the
Company. In addition to this, the Company will be amending its
investing policy to reflect the directors focus on resource
ventures in Africa.
Larry F. Johnson
Chief Executive Officer
9 February 2018
Chairman Statement
Since Kennedy Ventures' initial investment in African Tantalum
(Pty) Limited ("Aftan"), the mine has seen significant progress.
Initially focusing on recommissioning the mine, the Namibia
Tantalite Investment Mine ("NTI" or "the Mine") is now attracting
the attention from global end-users of Tantalum and producing world
leading grades of Tantalum shipments.
During the Period, the platform has been established for the
Company to extract the inherent value from its investment in Aftan.
In 2015, the Company's main aim was to facilitate the re-opening of
the NTI mine and recommission the processing plant to extract the
inherent and significant value from the NTI mine and surrounding
ore bodies. Having successfully achieved this, and, since the
appointment of Larry Johnson as CEO, the Company has now shifted
focus to increasing the quality of its shipments in line with a
multi-year supply agreement being agreed with the Customer. This
change in strategy has had a direct impact on the Company which,
during the Period, saw the Company booking its first sales from its
shipment to the Customer of its high grade 48% Ta(2) O(5) , one of
the highest grades reported from Tantalum mines globally, with
further purchase orders having followed the first.
Post Period, the plant and Aftan continue to work hard to meet
the shipments and the required Tantalite quality which our Customer
demands. The NTI mine has now progressed to a condition where it is
attracting more interest, with a second potential customer having
begun a thorough audit of the NTI mine in September 2017. As Aftan
continues to meet these orders and attract world class Customers,
the Company looks forward to updating shareholders on further
progress being delivered at the mine and on further investments in
line with Kennedy Ventures investment strategy.
On behalf of the Board, I thank our fellow employees for their
unwavering hard work and all the staff of Aftan and our
shareholders for their continued support.
Giles Clarke
Chairman
9 February 2018
GROUP INCOME STATEMENT
Year ended Year ended
30 June 30 June
2017 2016
Notes GBP'000 GBP'000
------------------------------------------ ----- ---------- ----------
Administrative expenses
Administrative expenses (1,098) (788)
Operating loss and loss before tax 6 (1,098) (788)
Taxation 9 - -
Loss for the year and total comprehensive
loss (1,098) (788)
Loss attributable to owners of the
Company (901) (676)
Loss attributable to non-controlling
interests (197) (112)
------------------------------------------- ----- ---------- ----------
(1,098) (788)
------------------------------------------ ----- ---------- ----------
Earnings per share attributable to
owners of the Company
From continuing operations:
Basic and diluted (pence) 10 (0.5)p (0.6)p
The accounting policies and notes form an integral part of these
financial statements.
GROUP STATEMENT OF COMPREHENSIVE INCOME
Year ended Year ended
30 June 30 June
2017 2016
GBP'000 GBP'000
--------------------------------------------------- ---------- ----------
Loss for the year attributable to owners
of the Company (901) (676)
Other comprehensive income:
Items that may be subsequently reclassified
to profit and loss:
Exchange differences on translation of foreign
operations 235 21
Other comprehensive income/(expense) for
the period 235 21
Total comprehensive loss for the year attributable
to equity holders of the parent (666) (655)
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 loss for the Parent Company for the year was
GBP308,000 (2016: GBP341,000).
The accounting policies and notes are an integral part of these
financial statements.
GROUP AND COMPANY STATEMENTS OF FINANCIAL POSITION
GROUP COMPANY
------------------ ------------------
2017 2016 2017 2016
Notes GBP'000 GBP'000 GBP'000 GBP'000
------------------------------ ----- -------- -------- -------- --------
Non-Current assets
Goodwill 11 588 571 - -
Other intangible assets 12 1,891 674 - -
Property, plant and equipment 13 655 466 - -
Investment in subsidiaries 14 - - 4,434 2,184
3,134 1,711 4,434 2,184
------------------------------ ----- -------- -------- -------- --------
Current assets
Trade and other receivables 15 174 70 19 38
Cash and cash equivalents 16 364 60 249 27
538 130 268 65
--------
Current liabilities
Trade and other payables 17 135 286 128 212
Short term borrowings 18 - 150 - 150
135 436 128 362
------------------------------ ----- -------- -------- -------- --------
Net assets 3,537 1,405 4,574 1,887
------------------------------ ----- -------- -------- -------- --------
Equity
Share capital 19 1,890 1,084 1,890 1,084
Share premium account 19 11,314 9,125 11,314 9,125
Capital redemption reserve 2,077 2,077 2,077 2,077
Currency translation reserve 252 17 - -
Retained earnings (11,674) (10,773) (10,707) (10,399)
------------------------------ ----- -------- -------- -------- --------
Equity attributable to owners
of the Company 3,859 1,530 4,574 1,887
Non-controlling interests (322) (125) - -
------------------------------ ----- -------- -------- -------- --------
Total equity 3,537 1,405 4,574 1,887
------------------------------ ----- -------- -------- -------- --------
These financial statements were approved by the Board of
Directors on 9 February 2018.
Signed on behalf of the Board by:
Larry Johnson Giles Clarke
Director Director
Company number: 005697574
The accounting policies and notes form an integral part of these
financial statements
GROUP STATEMENT OF CHANGES IN EQUITY
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 2015 763 7,849 2,077 (4) (10,182) 503 143 646
Comprehensive
income Loss
for the year - - - - (676) (676) (112) (788)
Other
comprehensive
income - - - 21 - 21 - 21
-------------- -------- -------- -------------- ------------ --------- ------------- ---------------- --------
Total
comprehensive
income - - - 21 (676) (655) (112) (767)
-------------- -------- -------- -------------- ------------ --------- ------------- ---------------- --------
Issue of share
capital 321 1,276 - - - 1,597 - 1,597
Acquisition
of subsidiary
undertakings - - - - - - (156) (156)
Share cased
payment
expense - - - - 85 85 - 85
Balance at 30
June 2016 1,084 9,125 2,077 17 (10,773) 1,530 (125) 1,405
-------------- -------- -------- -------------- ------------ --------- ------------- ---------------- --------
Comprehensive
income Loss
for the year - - - - (901) (901) (197) (1,098)
Other
comprehensive
income - - - 235 - 235 - 235
-------------- -------- -------- -------------- ------------ --------- ------------- ---------------- --------
Total
comprehensive
expense - 235 (901) (666) (197) (863)
-------------- -------- -------- -------------- ------------ --------- ------------- ---------------- --------
Issue of share
capital 806 2,189 - - - 2,995 - 2,995
Balance at 30
June 2017 1,890 11,314 2,077 252 (11,674) 3,859 (322) 3,537
============== ======== ======== ============== ============ ========= ============= ================ ========
The accounting policies and notes form an integral part of these
financial statements.
COMPANY STATEMENT OF CHANGES IN EQUITY
Capital
Share Share redemption Retained
capital Premium reserve earnings Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------------------------ -------- -------- ------------ --------- -------
Balance at 1 July 2015 763 7,849 2,077 (10,143) 546
Loss for the financial period - - - (341) (341)
Issue of share capital 321 1,276 - - 1,597
Share based payment expense - - - 85 85
Balance at 30 June 2016 1,084 9,125 2,077 (10,399) 1,887
Total comprehensive expense
for the year - - - (308) (308)
Issue of share capital 806 2,189 - - 2,995
Balance at 30 June 2017 1,890 11,314 2,077 (10,707) 4,574
The accounting policies and notes form an integral part of these
financial statements.
GROUP AND COMPANY STATEMENTS OF CASH FLOWS
GROUP COMPANY
Year ended Year ended Year ended Year ended
30 June 30 June 30 June 30 June
2017 2016 2017 2016
Notes GBP'000 GBP'000 GBP'000 GBP'000
-------------------------------- ------ ----------- ----------- ----------- -----------
OPERATING ACTIVITIES
Net cash used in operating
activities 23 (1,291) (423) (615) (147)
INVESTING ACTIVITIES
Purchases of property,
plant and equipment (251) (88) - -
Development costs (1,217) (664) - -
Advances to subsidiary
undertakings - - (2,008) (1,306)
Acquisition of non-controlling
interests - (336) - -
Acquisition of subsidiary
undertakings - - - -
Net cash used in investing
activities (1,468) (1,088) (2,008) (1,306)
-------------------------------- ------ ----------- ----------- ----------- -----------
FINANCING ACTIVITIES
Net proceeds from share
issues 2,995 1,365 2,995 1,365
Loans from associates - 108 - 108
Repayment of loans (150) - (150) -
Net cash from financing
activities 2,845 1,473 2,845 1,473
Net (decrease)/increase
in cash and cash equivalents 86 (38) 222 20
Exchange rate translation
adjustment 218 72 - -
Cash and cash equivalents
at beginning of year 60 26 27 7
Cash and cash equivalents
at end of year 16 364 60 249 27
-------------------------------- ------ ----------- ----------- ----------- -----------
The accounting policies and notes are an integral part of these
financial statements.
NOTES TO THE GROUP FINANCIAL STATEMENTS
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 15 Revenue from Contracts with Customers
-- IFRS 16 Leases
-- IAS 27 (amendments) Equity Method in Separate Financial Statements
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 have been prepared in
accordance with applicable International Financial Reporting
Standards ("IFRS") including standards and interpretations issued
by both the International Accounting Standards Board ("IASB")
and the International Financial Reporting Interpretation Committee
("IFRIC") as adopted and endorsed by the European Union ("EU"),
further to IAS Regulation (EC 1606/2002).
The consolidated financial statements have been prepared on
the basis of historical cost. 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 March
2019, 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
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.
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.
DEVELOPMENT COSTS
Development costs relate to expenditure incurred on the development
and evaluation of mineral resources. These costs are recorded
as intangible assets until the mineral resource reaches the
production stage. Upon completion of development and commencement
of production, capitalised development costs as well as evaluation
expenditures are transferred to mining assets in property, plant
and equipment and depreciated over the expected life of the
mineral resource.
Development costs incurred on specific projects are capitalised
when all the following conditions are satisfied:
* completion of the intangible asset is technically
feasible so that it will be available for use or sale
* the Group intends to complete the intangible asset
and use or sell it
* the Group has the ability to use or sell the
intangible asset
* the intangible asset will generate probable future
economic benefits
* there are adequate technical, financial and other
resources to complete the development and to use or
sell the intangible asset, and
* the expenditure attributable to the intangible asset
during its development can be measured reliably.
Other development expenditure that does not meet these criteria
is recognised as an expense as incurred. Development costs previously
recognised as an expense are not recognised as an asset in a
subsequent period.
PROPERTY, PLANT AND EQUIPMENT
Property, Plant and equipment are recorded at cost, less depreciation,
less any amount of 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 the straight-line
method based on their estimated useful lives from the time they
are put into operation, so that their net cost is diminished
over the lifetime of consideration to estimated residual value
as follows:
Land and buildings - Over 20 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 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 20. The estimates
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
2017 2016
GBP'000 GBP'000
-------------------------------------------------------- ---------- ----------
Loss for the period has been arrived at after charging:
Staff costs as per Note 8 below 311 406
Auditors remuneration 20 20
Depreciation of property, plant and equipment 62 17
------------------------------------------------------------ ---------- ----------
7 AUDITORS' REMUNERATION
The analysis of auditors' remuneration is as follows:
Year ended Year ended
30 June 30 June
2017 2016
GBP'000 GBP'000
----------------------------------------------- ----------- -----------
Fees payable to the Group's auditors for the
audit of the Group's annual accounts 20 20
Total audit fees 20 20
Fees payable to the Group auditor and their
associates for other services to the Group:
Tax services 1 1
21 21
----------------------------------------------- ----------- -----------
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
2017 2016
Number Number
--------------------------------------------- ----------- -----------
Group total staff 100 100
GBP'000 GBP'000
--------------------------------------------- ----------- -----------
Wages and salaries 277 194
Share based payment in respect of exercise
of options - 112
Other share base payment expense - 85
Social security costs 34 15
311 406
--------------------------------------------- ----------- -----------
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
2017 2016
GBP'000 GBP'000
----------------------------------------------- ----------- -----------
Loss on continuing operations before tax (1,098) (788)
--------------------------------------------------- ----------- -----------
Tax at the UK corporation tax rate of 19.75%
(2016: 20%) (217) (158)
Effects of:
Expenses not deductible for tax purposes 5 8
Unutilised tax losses carried forward 212 150
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
2017 2016
GBP'000 GBP'000
----------------------------------------------- ----------- -----------
Loss for the year attributable to owners of
the Company (901) (676)
Weighted average number of ordinary shares
in issue for basic and fully diluted earnings 177,144,947 104,756,967
---------------------------------------------------- ----------- -----------
LOSS PER SHARE (PENCE PER SHARE)
BASIC AND FULLY DILUTED:
- from continuing and total operations (0.5) (0.6)
---------------------------------------- ------ ------
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.
In addition the effect of the issue of ordinary shares shortly
after year end, would also have been anti-dilutive, and accordingly
is not considered. The issue however, may be dilutive in future
periods.
11 GOODWILL
2017 2016
GROUP GBP'000 GBP'000
------------------------------------------ ------- -------
Balance brought forward 571 442
Arising on acquisition of non-controlling
interest - 180
Exchange translation difference 17 (51)
Balance carried forward 588 571
------------------------------------------- ----- ------- -------
The Directors have reviewed the carrying value of Goodwill at 30
June 2017 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 OTHER INTANGIBLE ASSETS
Development Mining
costs licences Total
GROUP GBP'000 GBP'000 GBP'000
------------------ ----------- --------- -------
At 1 July 2016 664 10 674
Additions in year 1,217 - 1,217
------------------------- ----------- --------- -------
At 30 June 2017 1,881 10 1,891
------------------------- ----------- --------- -------
13 PROPERTY, PLANT AND EQUIPMENT
Plant & Furniture
Land & buildings machinery & equipment Total
GROUP GBP'000 GBP'000 GBP'000 GBP'000
------------------------------- ---------------- ---------- ------------ -------
Cost
At 1 July 2015 125 270 - 395
Additions - 51 37 88
-------------------------------------- ---------------- ---------- ------------ -------
Cost at 30 June 2016 125 321 37 483
Adjustment - 64 (4) 60
Additions - 251 - 251
-------------------------------------- ---------------- ---------- ------------ -------
Cost at 30 June 2017 125 636 33 794
Depreciation
At 1 July 2015 - - - -
Charge for the year 6 7 4 17
-------------------------------------- ---------------- ---------- ------------ -------
Depreciation at 30 June 2016 6 7 4 17
Adjustment - 63 (3) 60
Charge for the year 9 49 4 62
-------------------------------------- ---------------- ---------- ------------ -------
Depreciation at 30 June 2017 15 119 5 139
-------------------------------------- ---------------- ---------- ------------ -------
Net book value at 30 June 2017 110 517 28 655
-------------------------------------- ---------------- ---------- ------------ -------
Net book value at 30 June 2016 119 314 33 466
-------------------------------------- ---------------- ---------- ------------ -------
14 INVESTMENT IN subsidiarY UNDERTAKINGS
The Company invests in its subsidiary and associated undertakings
2017 2016
COMPANY GBP'000 GBP'000
---------------------------------------- -------- --------
Cost and net book value
At 1 July 2,184 758
Additional advances to African
Tantalum (Pty) Ltd 2,008 1,306
Intercompany loan interest 242 120
As at 30 June 4,434 2,184
----------------------------------------- -------- --------
The intercompany loan to Aftan bears interest at 12% p.a.
All principal subsidiaries of the Group are consolidated into
the financial statements. At 30 June 2017 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 100
Tameka Shelf Company Ordinary
Four (Pty) Ltd Namibia Mining licence holder shares 100
-------------------------------- -------------------- ----------------------- --------------- --------
The following table summarises the movement in the investments
made by the Company in subsidiary undertakings, as above:
2017 2016
COMPANY GBP'000 GBP'000
At 1 July 2,184 758
Part capitalisation of loan to
Aftan 550 500
Increase in loan to Aftan 1,700 926
-------------------------------- -------- --------
As at 30 June 4,434 2,184
-------------------------------- -------- --------
During the year approximately 25% of the intercompany loan was
converted into shares in Aftan.
15 TRADE AND OTHER RECEIVABLES
GROUP COMPANY
2017 2016 2017 2016
GBP'000 GBP'000 GBP'000 GBP'000
------------------------------- ------- ------- ------- -------
Other receivables 166 64 11 32
Prepayments and accrued income 8 6 8 6
174 70 19 38
------------------------------------ ------- ------- ------- -------
The Directors consider the carrying amount of intercompany loans
and other receivables approximates to their fair value.
16 CASH AND CASH EQUIVALENTS
GROUP COMPANY
2017 2016 2017 2016
GBP'000 GBP'000 GBP'000 GBP'000
-------------------------- ------- ------- ------- -------
Cash and cash equivalents 364 60 249 27
--------------------------------- ------- ------- ------- -------
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.
The Directors consider the carrying amount of cash and cash
equivalents approximates to their fair value.
17 TRADE AND OTHER PAYABLES
GROUP COMPANY
2017 2016 2017 2016
GBP'000 GBP'000 GBP'000 GBP'000
--------------------- ---------- ---------- ---------- ----------
Trade payables 33 56 33 56
Other payables - 129 - 63
Accruals 102 101 95 93
---------------------------- ---------- ---------- ---------- ----------
135 286 128 212
---------------------------- ---------- ---------- ---------- ----------
The Directors consider the carrying amount of trade payables
approximates to their fair value.
18 SHORT TERM BORROWINGS
GROUP COMPANY
2017 2016 2017 2016
GBP'000 GBP'000 GBP'000 GBP'000
--------------------------------- -------- ------- ------- -------
Westleigh Investments Holdings
Ltd loan - 150 - 150
- 150 - 150
---------------------------------------- -------- ------- ------- -------
See Note 25, Related party transactions, for further details.
19 share capital AND SHARE PREMIUM
Number of Nominal value Share premium
shares GBP'000 GBP'000
ISSUED AND FULLY PAID:
At 30 June 2015, shares of
1p each 76,309,748 763 7,849
Share issue 32,151,791 321 1,351
Share issue expenses - - (75)
At 30 June 2016, shares of
1p each 108,461,539 1,084 9,125
Share issues 80,555,554 806 2,444
Share issue expenses - - (255)
----------------------------- ------------ -------------- --------------
At 30 June 2017 189,017,093 1,890 11,314
----------------------------- ------------ -------------- --------------
Share issues
On 20 July 2016, the Company issued 66,666,665 ordinary shares
of 1p at 3p per share for cash in respect of a private placing.
On 1 February 2017, the Company issued 13,888,889 ordinary shares
of 1p at 9p per share for cash in respect of a private placing.
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.
On 16 July 2015, a further 1,599,705 such options were granted
each to G Clarke and N Harrison, and 2,132,940 options were
granted to former directors on the same terms. The options are
exercisable at any time up to 25 March 2018.
The significant inputs to the model in respect of the options
granted in July 2015 were as follows:
Share price at date of 4.85 pence
grant 1.25 pence
Exercise price 5,332,350
No. of share options 50%
Expected volatility 2.7 years
Option life 2%
Risk free rate 3.70 pence
Calculated fair value
per share
The total share-based payment expense recognised in the income
statement for the year ended 30 June 2017 in respect of the
share options granted was GBPNil (2016: GBP197,000).
------------------------------------------------------------------------------------
Number
of Number of
options options
at Issued Exercised at
1 July in in the 30 June Exercise Vesting
2016 the year year 2017 price Date Expiry date
---------- ---------- ---------- ---------- --------- ----------- ------------
5,332,350 - - 5,332,350 1.25p 16.07.2015 25.03.2018
5,332,350 - - 5,332,350 1.25p
---------- ---------- ---------- ---------- --------- ----------- ------------
21 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:
2017 2016
GBP'000 GBP'000
-------------------------------------------- ------------- -------------
Financial assets:
Cash and cash equivalents 364 60
Loans and receivables 166 64
--------------------------------------------- --- ------------- -------------
530 124
------------------------------------------------- ------------- -------------
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:
2017 2016
GBP'000 GBP'000
------------------------------------------------ --------- --------
Financial liabilities at amortised cost:
Trade and other payables 33 185
Short term borrowings - 150
------------------------------------------------- --------- --------
33 335
------------------------------------------------ --------- --------
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
1 month 1-3 months to 1 year 1-5 years Over 5 years
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------------------- --------- ---------- ---------- --------- ------------
30 June 2017
Non-interest bearing:
Trade and other payables - 33 - - -
Short term borrowings - - - - -
------------------------- --------- ---------- ---------- --------- ------------
30 June 2016
Non-interest bearing:
Trade and other payables - 185 - - -
Short term borrowings - 150 - - -
------------------------- --------- ---------- ---------- --------- ------------
22 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 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 Group's maximum exposure to credit risk is GBP364,000 (2016:
GBP60,000) 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 Dollar
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.
23 NOTES TO THE CASHFLOW STATEMENT
GROUP COMPANY
2017 2016 2017 2016
GBP'000 GBP'000 GBP'000 GBP'000
--------------------------------------- -------- -------- -------- --------
Operating loss (1,098) (788) (308) (341)
Depreciation and amortisation 62 17 - -
Share based payment expense - 197 - 197
Shares issued in settlement of
fees - 20 - 20
Intercompany loan interest - - (242) (120)
-------------------------------------------- -------- -------- -------- --------
Operating cash flows before movement
in working capital (1,036) (554) (550) (244)
(Increase)/decrease in receivables (104) (57) 19 (28)
(Decrease)/increase in payables (151) 188 (84) 125
-------------------------------------------- -------- -------- -------- --------
Net cash used in operating activities (1,291) (423) (615) (147)
-------------------------------------------- -------- -------- -------- --------
24 EVENTS AFTER THE REPORTING PERIOD
On 27 July 2017 the Company announced that it had conditionally
raised GBP3.75m before expenses through the placing of 62,500,000
new ordinary shares in the Company at a price of 6p per share.
The net proceeds of the placing will be used by African Tantalum
(PTY) Limited ("Aftan"), Kennedy Ventures' investee company,
for upgrades and expansion of the Namibia Tantalite Investments
mine in order to fulfil increasing demand, in addition to drilling
and bulk sampling to establish JORC lithium resource and extension
to the life of the NTI mine. The upgrade and expansion of the
mine will support the multiyear supply agreement signed with
a global North American leading tantalum consumer and end user
of the Company's tantalum ore.
On 17 August 2017, the Company granted 10,000,000 options to
L Johnson, exercisable at 6p per share and vesting over a 3
year period.
25 RELATED PARTY TRANSACTIONS
The remuneration of the Directors, who are the key management
personnel of the Company, is set out in the report of the Board
on remuneration accompanying these financial statements.
During the year Westleigh Investment Holdings Ltd ("WIHL") received
GBP48,000 (2016: GBP48,000) in respect of accounting, administration
and office accommodation services provided to the Company. WIHL
is a substantial shareholder in the Company and is controlled
by Giles Clarke and Nick Harrison through their holdings of
73.28% and 26.72% respectively.
There have been no other material transactions with related
parties.
26 OPERATING LEASES
The Group has an operating lease over the land for which it
has a mining licence which endures until the mining operations
permanently cease. The rent is approximately GBP150 per annum.
27 CAPITAL COMMITMENTS AND CONTINGENT LIABILITIES
There were no capital commitments authorised by the Directors
or contracted for at 30 June 2017 (2016: GBPnil).
28 ULTIMATE CONTROLLING PARTY
The Directors do not consider there to be one single ultimate
controlling party.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR DVLFBVLFFBBE
(END) Dow Jones Newswires
February 09, 2018 02:00 ET (07:00 GMT)
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