VI Mining PLC - Final Results
RNS Number : 9082P
VI Mining PLC
31 May 2018
 

31 May 2018

VI Mining PLC

(The "Company" or "VI Mining")

Final results for the year ended 31 December 2017

VI Mining (NEX: VIM), a Peru-based exploration and mining company, today announces its final results for the year ended 31 December 2017.

I am delighted to report the consolidated results for the financial year ended 31 December 2017 of VI Mining PLC (the "Company") and its subsidiary undertakings ("VI Mining" or the "Group").

 

VI Mining is an emerging gold and silver producer focused on the development and operation of gold and silver projects in Peru.

 

The Group has an experienced management team that has a proven track record of developing and commercializing mining assets in Peru and other countries in South America.

 

VI Mining's strategic objective is to become a leading Peruvian precious metals producer. The Company aims to achieve this by:

 

§ acquiring quality assets, such as strategically placed tolling operations close to feedstock and brownfield development opportunities with exploration acreage and the potential for attractive returns;

 

§ operational excellence by developing projects on time and on budget, with a proven track record of best in class operators, multidisciplinary board and management;

 

§ accountability and responsibility with a clear focus on safety and environmental stewardship, working with stakeholders to create tangible and sustainable benefits; and

 

§ capital discipline to create value, maintaining a strong and healthy balance sheet and extensive reach to access capital markets.

 

VI Mining currently has two tolling assets and two mining assets.

 

Tolling

 

The Group owns two processing (tolling) assets in Peru: Oro Pesa in the Arequipa region of Peru and Ximenita de Casma in Ancash

 

At the time of Admission, the Company anticipated that the tolling plants at Ora Pesa and Ximenita de Casma would be operational in the first quarter and second quarter of 2018 respectively. 

 

These projects have each been delayed by up to six months. The delay at Oro Pesa is due to the requirement for a technical evaluation to audit the plant that could not be foreseen at the time the Company was admitted to trading on the NEX Exchange. This has now been completed and the commissioning of the plant will proceed in June, with the intention to be operational during the third quarter of 2018.

 

The Company has halted work at Ximenita de Casma until the ongoing dispute with the previous owners has been remedied.

 

Mining

 

On 2 February 2018, VI Mining entered into an agreement to acquire the Minaspampa Project and the Rosario Project (both located in the La Libertad region in the northwest of Peru) for an aggregate consideration of $51.3 million.  These are former working gold and silver mines.  Operations at Minaspampa were suspended in advance of the acquisition, and the Rosario mine was in care and maintenance.

 

In 2018 the Group will continue exploration work and mine development and optimisation planning at both mines in advance of restarting mining operations. These two projects, which account for more than ninety per cent of the Company's value, are on track to commence operations in line with the timeframes set out in the admission document, being within the next 6 months at Minaspampa and 9 months at Rosario.

 

Potential Acquisitions

 

The Company is continuing its discussions in relation to the acquisition of the business and assets of Jongos E.I.R.L, which includes a tolling plant adjoining the Minaspampa Project with the capacity for processing 150 metric tonnes of ore per day.  The Company is also in discussions relating to the acquisition of further mining concessions in Peru and looks forward to updating the market in relation to these acquisitions should they complete in due course.

 

Financial results for 2017

 

The Group loss after tax for the year ended 31 December 2017 was $6.1 million (2016: $2.1 million), which included cost of admission to NEX of $1.5 million.

 

Basic and diluted loss per share was $0.31 (2016: $0.11).

 

Net assets at 31 December 2017 were $2.6 million (2016: $5.6 million net liabilities).

 

The Directors do not recommend a dividend be paid for the year ended 31 December 2017.

 

Initial Public Offering

 

On 2 March 2018, VI Mining successfully completed its initial public offering on London's NEX Exchange Growth Market with a share placement which raised £5.35 million in gross proceeds. Pursuant to this, the Company issued 106,950,731 ordinary shares of no par value at an admission price of £5.00 each. 

 

I thank our employees and investors for their support and look forward to our future together.

 

Jide Zeitlin

Chairman

  

 

Enquiries:

 

VI Mining PLC

David Sumner (Chief Executive Officer)

David.sumner@vimining.com

 

Corporate Adviser and Broker

Daniel Stewart & Company PLC

Richard Potts / Nikhil Varghese

nikhil.varghese@danielstewart.co.uk

+44 (0) 20 7776 6550

 

Financial Public Relations

Brunswick Group

Jade Mamarbachi / Charles Pemberton

vimining@brunswickgroup.com

+44 (0) 20 7396 5331 / +971 50 6003829

 

 

 

 

 

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2017

 

 

 

 

2017

 

2016

 

 

 

$000

 

$000

 

 

 

 

 

 

Non-current assets

 

 

 

 

 

Intangible assets

 

 

2,046

 

242

Tangible assets

 

 

1,254

 

3

Deferred tax asset

 

 

284

 

12

 

 

 

3,584

 

257

Current assets

 

 

 

 

 

Trade and other receivables

 

 

388

 

4

Cash and cash equivalents

 

 

3,893

 

-

 

 

 

4,281

 

4

Current liabilities

 

 

 

 

 

Trade and other payables

 

 

(1,409)

 

(134)

Amounts due to related parties

 

 

(779)

 

-

Deferred consideration

 

 

(188)

 

-

Corporation tax

 

 

(15)

 

-

 

 

 

(2,391)

 

(134)

 

 

 

 

 

 

Net current assets (liabilities)

 

 

1,890

 

(130)

 

 

 

 

 

 

Non-current liabilities

 

 

 

 

 

Employee end of service benefits

 

 

(32)

 

-

Provisions

 

 

(150)

 

-

Deferred tax liability

 

 

(309)

 

-

Deferred consideration

 

 

(283)

 

-

Debt

 

 

(2,140)

 

(5,750)

 

 

 

(2,914)

 

(5,750)

 

 

 

 

 

 

Net assets (liabilities)

 

 

2,560

 

(5,623)

 

 

 

 

 

 

Equity attributable to owners

 

 

 

 

 

Stated capital

 

 

10,333

 

-

Shares to be issued

 

 

3,908

 

-

Merger reserve

 

 

279

 

279

Accumulated loss

 

 

(11,960)

 

(5,902)

Total equity

 

 

2,560

 

(5,623)

 

 

 

 

 

 

 

 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 DECEMBER 2017

 

 

 

 

2017

 

2016

 

 

 

$000

 

$000

 

 

 

 

 

 

Revenue

 

 

-

 

-

Cost of sales

 

 

-

 

-

Gross profit

 

 

-

 

-

 

 

 

 

 

 

Listing costs

 

 

(1,482)

 

-

Operating costs

 

 

(4,500)

 

(1,755)

Operating loss

 

 

(5,982)

 

(1,755)

 

 

 

 

 

 

Finance costs

 

 

(348)

 

(350)

Loss before taxation

 

 

(6,330)

 

(2,105)

Income tax

 

 

272

 

12

Loss after tax

 

 

(6,058)

 

(2,093)

 

 

 

 

 

 

 

 

 

 

 

 

Total comprehensive loss for the year attributable to equity holders

 

 

(6,058)

 

(2,093)

 

 

 

 

 

 

Earnings per share

 

 

 

 

 

Basic and diluted loss per share ($)

 

 

($0.308)

 

($0.106)

 

 

 

 

 

 

 

 

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2017

 

 

 

 

2017

 

2016

 

 

 

$000

 

$000

 

 

 

 

 

 

Cash flows from operating activities

 

 

 

 

 

Loss for the period before taxation

 

 

(6,330)

 

(2,105)

Depreciation and amortisation

 

 

26

 

20

Directors' remuneration

 

 

1,750

 

1,440

Provision for employees' end of service benefits

 

 

32

 

-

Interest expenditure

 

 

348

 

350

Operating cash flow before working capital changes  

 

 

(4,174)

 

(295)

 

 

 

 

 

 

Movement in trade and other receivables

 

 

(384)

 

(4)

Movement in trade and other payables

 

 

2,032

 

75

 

 

 

 

 

 

Net cash flow from operating activities

 

 

(2,526)

 

(224)

 

 

 

 

 

 

Investing activities

 

 

 

 

 

Purchase of tangible assets

 

 

(1,116)

 

(23)

Purchase of intangible assets

 

 

(573)

 

(242)

Net cash flow on acquisition of subsidiary

 

 

(450)

 

-

Net cash flow from investing activities

 

 

(2,139)

 

(265)

 

 

 

 

 

 

Financing activities

 

 

 

 

 

Debt financing

 

 

4,650

 

489

Monies received in advance of shares to be issued

 

 

3,908

 

-

Net cash flow from financing activities

 

 

8,558

 

489

 

 

 

 

 

 

Net increase in cash and cash equivalents

 

 

3,893

 

-

Cash and cash equivalent - start of the year

 

 

-

 

-

 

 

 

 

 

 

Cash and cash equivalents - end of the year

 

 

3,893

 

-

 

 

 

 

 

 

 

 

NOTES TO THE PRELIMINARY RESULTS

FOR THE YEAR ENDED 31 DECEMBER 2017

 

The financial information set out above does not constitute statutory accounts for the year ended 31 December 2016 or 2017. The financial information has been extracted from the statutory accounts of VI Mining Plc and is presented using the same accounting policies, which have not yet been filed with the Registrar of companies.

The auditors have reported on the financial statements for the year ended 31 December 2017; their report was unqualified but did contain an emphasis of matter paragraph in respect of going concern.

While the financial information included in this preliminary announcement has been prepared in accordance with the recognition and measurement criteria of International Financial Reporting Standards (IFRSs and IFRIC interpretations) issued by the International Accounting Standards Board and as endorsed for use in the European Union, and with those parts of the Companies (Jersey) Law 1991 applicable to companies preparing their accounting under IFRS. This announcement does not itself contain sufficient information to comply with IFRSs.

The preliminary announcement of the results for the period ended 31 December 2017 was approved by the board of directors on 30 May 2018.

Earnings per share

Earnings per share has been included based on the relevant number of shares in the Company following the group reorganisation but prior to the issue of shares to raise new funds.  The calculation of earnings per share is based on the following and number of shares in issue in VIM PLC:

 

2017

 

2016

 

$000

 

$000

 

 

 

 

Loss for the year

(6,058)

 

(2,093)

 

 

 

 

Weighted number of ordinary shares

19,685,239

 

19,685,239

Loss per ordinary share - basic and diluted

($ 0.308)

 

($ 0.106)

 

Basic loss per share is based on the weighted average number of ordinary shares in issue during the year. Diluted loss per share would assume conversion of all potentially dilutive share options. The potential ordinary shares are anti-dilutive and therefore the diluted loss per share has not been calculated.

On 6 May 2017, VIM PLC acquired the Valley International Mining Limited group via a share for share exchange as a group reorganisation.  It is of limited significance to calculate earnings per share on the historical equity of the companies forming the Group prior to the reorganisation.  Accordingly, a loss per share has been included based on the relevant number of shares in VIM PLC following the group reorganisation. 

 


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