Interim Results
African Potash, the AIM listed exploration company focused on the vertical integration of fertiliser operations in
OVERVIEW
· The Company continues to implement its strategy to deliver near term value through development of a vertical platform for the mining, production and distribution of fertiliser
· Maiden revenue generated from fertiliser trade in
· Trading agreement with the
· Strengthened board with pre-eminent industrial, political and diplomatic figures with experience in African operations to support active growth strategy
· Loss before taxation for the period was
· Cash balances at
African Potash Executive Chairman
"With the implementation of our new strategy to provide a vertical platform for the mining, production and distribution of fertiliser on a domestic basis, African Potash could become an important element in
Chairman's Statement
African Potash has spent the past 12 months transforming into a revenue generative business with a captive, domestic and growing market for its product. This strategy was implemented after taking heed of investors' attitudes towards the traditional and often time consuming model of resource companies; initial exploration followed by lengthy development phases, construction and eventually production - with numerous equity raisings and dilution underpinning these growth and development stages. To mitigate the downside risk associated with resource development, and to provide our shareholders with near-term value in the form of revenue, African Potash adopted a new approach to building a vertically integrated fertiliser business, focussing initially on trading and distribution.
As such, the period under review has seen significant changes for African Potash and seen the Company expand into the trading and distribution of fertiliser and fertiliser constituents, with a landmark trading agreement with the
Supporting this ambitious strategy is our new, bolstered and highly experienced board which boasts new recruits Mr Elias Pungong and Mr
Trading Operations for Near-Term Revenue Generation
However, as is not untypical with any rapid expansion in a business' strategy or business model, there are often unforeseen teething problems or delays - and African Potash is no exception to this rule. Whilst the period under review has delivered the first revenues for the Company (from the Windmill trade announced in
Exploration and Development at Lac Dinga - Long-Term Value Uplift from Production
African Potash retains its interest in the exploration side of the fertiliser industry through its 70% interest in La Société des Potasses et des
The initial three year licence period expired on
Whilst the Project is still at an early stage of exploration, work conducted to date has returned encouraging results regarding the potential of the project area hosting significant potash deposits with mineralisation characteristic of similar commercial deposits in the Congolese coastal basin.
Financial Results
The Company is pleased to report its maiden trading revenues in the period. Although small in line with off-take of consignment stock under the Windmill contract, this represents a significant milestone.
Revenue was
On
Outlook
The role of fertilisers in meeting the sizeable challenge of feeding the world's expanding population is undeniable. Farmers in
Being cognisant of this, and acknowledging the huge worldwide variances in fertiliser pricing - for example, the average Ugandan farmer pays twice as much for fertiliser compared to his European or American counterpart - African Potash has laid the foundations to become a trader, distributor and ultimately miner of fertiliser and fertiliser constituents in order to rebalance this and offer a cost-effective domestic alternative.
Our current trading agreements continue to dominate our immediate thoughts, and we are working hard to deliver on the items previously announced and secure the balance of the outstanding funds owed to us. It is with this in mind that I would like to thank our shareholders for their continued patience and look forward to providing further news in the coming weeks and months.
Executive Chairman
For further information visit www.africanpotash.com or contact the following:
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+44 (0) 20 7236 1177 |
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+44 (0) 20 7894 7000 |
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+44 (0) 20 7894 7000 |
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+44 (0) 20 7894 7000 |
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+44 (0) 20 7710 9610 |
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+44 (0) 20 7236 1177 |
Susie Geliher |
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+44 (0) 20 7236 1177 |
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED
Unaudited Consolidated Income Statement
For the half year to
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Unaudited 6 months to 31 December 2015 |
Unaudited 6 months to 31 December 2014 |
Unaudited Year ended 30 June 2015 |
|
Note |
$'000 |
$'000 |
$'000 |
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|
|
|
|
Revenue |
|
59 |
- |
- |
Cost of sales |
|
(46) |
- |
- |
Gross margin |
|
13 |
- |
- |
Operating expenses |
|
(622) |
(545) |
(1,238) |
Impairment of exploration and evaluation costs |
|
- |
- |
(7,464) |
Operating loss |
|
(609) |
(545) |
(8,702) |
Net finance (expense) / income |
4 |
(107) |
(115) |
(134) |
Loss before taxation |
|
(716) |
(660) |
(8,836) |
Income tax expense |
|
- |
- |
- |
Loss for the period |
|
(716) |
(660) |
(8,836) |
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|
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Attributable to : |
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|
|
Owners of the parent company |
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(716) |
(660) |
(7,219) |
Non-controlling interests |
|
- |
- |
(1,617) |
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(716) |
(660) |
(8,836) |
Loss per share: basic and diluted Attributable to : |
5 |
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|
|
Owners of the parent company |
( |
( |
( |
|
Non-controlling interests |
- |
- |
( |
All results relate to continuing activities
Unaudited Consolidated Comprehensive Income Statement
For the half year to
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Unaudited 6 months to 31 December 2015 |
Unaudited 6 months to 31 December 2014 |
Unaudited Year ended 30 June 2015 |
|
|
$'000 |
$'000 |
$'000 |
Loss for the period |
|
(716) |
(660) |
(8,836) |
Other comprehensive income |
|
|
|
|
Exchange translation differences on foreign operations |
|
61 |
213 |
(574) |
Total comprehensive income for the period |
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(655) |
(447) |
(9,410) |
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|
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Attributable to : |
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|
|
|
Owners of the parent company |
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(655) |
(447) |
(7,793) |
Non-controlling interests |
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- |
- |
(1,617) |
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(655) |
(447) |
(9,410) |
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|
|
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Unaudited Consolidated Statement of Financial Position
As at
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Unaudited 31 December 2015 |
Unaudited 31 December 2014 |
Unaudited 30 June 2015 |
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Note |
$'000 |
$'000 |
$'000 |
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|
|
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Non-current assets |
|
|
|
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Intangible assets: exploration activities |
10,424 |
17,684 |
10,000 |
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Property plant and equipment |
134 |
153 |
131 |
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Total non-current assets |
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10,558 |
17,837 |
10,131 |
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Current assets |
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Trade and other receivables |
|
406 |
353 |
99 |
Cash and cash equivalents |
|
509 |
679 |
571 |
Total current assets |
|
915 |
1,032 |
670 |
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Total assets |
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11,473 |
18,869 |
10,801 |
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Current liabilities |
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Trade and other payables |
|
(615) |
(659) |
(530) |
Deferred consideration |
|
(800) |
(800) |
(800) |
Loan note |
|
(1,150) |
- |
- |
Net assets |
|
8,908 |
17,410 |
9,471 |
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|
|
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Equity |
|
|
|
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Issued capital |
6 |
15,956 |
14,571 |
15,864 |
Shares to be issued |
|
2,800 |
2,800 |
2,800 |
Convertible securities |
|
- |
1,030 |
- |
Share based payment reserve |
|
1,141 |
380 |
1,141 |
Foreign exchange translation reserve |
(535) |
191 |
(596) |
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Retained earnings |
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(11,984) |
(4,709) |
(11,268) |
Total equity attributable to equity holders |
|
7,378 |
14,263 |
7,941 |
Non controlling interests |
|
1,530 |
3,147 |
1,530 |
Total equity |
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8,908 |
17,410 |
9,471 |
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|
|
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Unaudited Statement of Changes in Equity
|
Ordinary share capital $'000 |
Shares to be issued $'000 |
Convertible securities $'000 |
Share based payment reserve $'000 |
Foreign exchange translation reserve $'000 |
Retained earnings $'000 |
Total $'000 |
Non- controlling interest $'000 |
Total $'000 |
Balance at |
13,897 |
2,800 |
- |
356 |
(22) |
(4,049) |
12,982 |
3,147 |
16,129 |
Loss for the period |
- |
- |
- |
- |
- |
(660) |
(660) |
- |
(660) |
Other comprehensive income |
|
|
|
|
|
|
|
|
|
Exchange translation differences on foreign operations |
- |
- |
- |
- |
213 |
- |
213 |
- |
213 |
Total comprehensive income for the period |
- |
- |
- |
- |
213 |
(660) |
(447) |
- |
(447) |
Transactions with owners |
|
|
|
|
|
|
|
|
|
Issue of shares |
674 |
- |
- |
- |
- |
- |
674 |
- |
674 |
Share based payment charge |
- |
- |
- |
24 |
- |
- |
24 |
- |
24 |
Issue of convertible loan note |
- |
- |
1,030 |
- |
- |
- |
1,030 |
- |
1,030 |
Total transactions with owners |
674 |
- |
1,030 |
24 |
- |
- |
1,728 |
- |
1,728 |
Balance at |
14,571 |
2,800 |
1,030 |
380 |
191 |
(4,709) |
14,263 |
3,147 |
17,410 |
Loss for the period |
- |
- |
|
- |
- |
(6,559) |
(6,559) |
(1,617) |
(8,176) |
Other comprehensive income |
|
|
|
|
|
|
|
|
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Exchange translation differences on foreign operations |
- |
- |
- |
- |
(787) |
- |
(787) |
- |
(787) |
Total comprehensive income for the period |
- |
- |
- |
- |
(787) |
(6,559) |
(7,346) |
(1,617) |
(8,963) |
Transactions with owners |
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|
|
|
|
|
|
|
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Issue of shares |
1.293 |
- |
(490) |
- |
- |
- |
803 |
- |
803 |
Redemption of convertible loan note |
- |
- |
(540) |
- |
- |
- |
(540) |
- |
(540) |
Share based payment charge |
- |
- |
- |
761 |
- |
- |
761 |
- |
761 |
Total transactions with owners |
1,293 |
- |
(1,030) |
761 |
- |
- |
1,024 |
|
1,024 |
Balance at |
15,864 |
2,800 |
- |
1,141 |
(596) |
(11,268) |
7,941 |
1,530 |
9,471 |
Loss for the period |
- |
- |
- |
- |
- |
(716) |
(716) |
- |
(716) |
Other comprehensive income |
|
|
|
|
|
|
|
|
|
Exchange translation differences on foreign operations |
- |
- |
- |
- |
61 |
- |
61 |
- |
61 |
Total comprehensive income for the period |
- |
- |
- |
- |
61 |
(716) |
(655) |
- |
(655) |
Transactions with owners |
|
|
|
|
|
|
|
|
|
Issue of shares |
92 |
- |
- |
- |
- |
- |
92 |
- |
92 |
Total transactions with owners |
92 |
- |
- |
- |
- |
- |
92 |
- |
92 |
Balance at |
15,956 |
2,800 |
- |
1,141 |
(535) |
(11,984) |
7,378 |
1,530 |
8,908 |
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|
|
|
|
|
|
|
|
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Unaudited Consolidated Statement of Cash Flows
For the half year to |
Unaudited 6 months to 31 December 2015 |
Unaudited 6 months to 31 December 2014 |
Unaudited year ended 30 June 2015 |
|
Operating activities |
|
$'000 |
$'000 |
$'000 |
Loss before tax |
|
(716) |
(660) |
(8,836) |
Adjustments for: |
|
|
|
|
Impairment of evaluation and exploration assets |
- |
- |
7,464 |
|
Share based payment change |
- |
- |
391 |
|
Movements in exchange |
- |
(1) |
(192) |
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Net interest expense |
|
107 |
115 |
134 |
Operating cash flow before movements in working capital |
|
(609) |
(546) |
(1,039) |
Working capital adjustments: |
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|
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- Decrease / (increase) in receivables |
(307) |
14 |
(9) |
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- Increase / (decrease) in payables |
|
87 |
127 |
155 |
Cash used in operations |
|
(829) |
(405) |
(893) |
Net interest paid |
|
(107) |
- |
(134) |
Net cash outflow from operating activities |
(936) |
(405) |
(1,027) |
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|
|
|
|
|
Investing activities |
|
|
|
|
Purchase of intangible assets |
|
(363) |
(2,196) |
(2,689) |
Purchase of property, plant and equipment |
|
- |
(122) |
(121) |
Net cash flow from investing activities |
(363) |
(2,318) |
(2,810) |
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|
|
|
|
|
Financing activities |
|
|
|
|
Issue of shares |
90 |
- |
1,758 |
|
Issue of convertible securities |
- |
1,237 |
1,250 |
|
Repayment of convertible securities |
- |
- |
(760) |
|
Draw down of loan note |
1,150 |
- |
- |
|
Net cash flow from financing activities |
1,240 |
1,237 |
2,248 |
|
Net decrease in cash and cash equivalents |
(59) |
(1,486) |
(1,589) |
|
Cash and cash equivalents at start of the period |
571 |
2,170 |
2,170 |
|
Effect of foreign exchange rates |
(3) |
(5) |
(10) |
|
Cash and cash equivalents at end of the period |
|
509 |
679 |
571 |
Notes to the Unaudited Interim Financial Statements
1. |
General information |
The Company is listed on the AIM Market of
The unaudited interim financial statements for the 6 months ended
The interim financial statements for the 6 months ended
The unaudited interim financial statements have been prepared in US Dollars as this is the currency of the primary economic environment in which the Group operates.
2. |
Basis of preparation |
The condensed consolidated financial statements of the Group for the six months ended
This interim report has been prepared to comply with the requirements of the AIM rules of the
The financial information contained in this report also does not constitute statutory accounts under the Companies (Guernsey) Law 2008, as amended. The financial information for the year ended 30 June is based on the statutory accounts for the year then ended. The auditors reported on those accounts. Their report was unqualified and did not include any statements of emphasis of matter.
3. |
Significant accounting policies |
Basis of accounting
The unaudited interim financial statements have been prepared on the historical cost basis except for financial instruments measured at fair value. The principal accounting policies adopted are consistent with those of the financial statements for the year ended
4. |
Finance costs |
|
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|
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Unaudited 6 months to 31 December 2015 |
Unaudited 6 months to 31 December 2014 |
Unaudited Year ended 30 June 2015 |
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$'000 |
$'000 |
$'000 |
||
Net finance (expense) / income |
|
(107) |
(115) |
(134) |
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The finance costs arising in the period ending
The finance costs arising in the period ending
5. |
Earnings per share |
The calculation of basic and diluted earnings per share is based on the following data:
|
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Unaudited 6 months to 31 December 2015 |
Unaudited 6 months to 31 December 2014 |
Unaudited year ended 30 June 2015 |
|
|
$'000 |
$'000 |
$'000 |
Loss for the purpose of basic loss per share: -attributable to equity holders - attributable to non-controlling interests |
(716) - |
(660) - |
(7,219) (1,617) |
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Number of shares |
|
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|
Weighted average number of ordinary shares for the purposes of calculating basic and diluted loss per share |
763,776,007 |
294,849,389 |
366,026,873 |
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|
Basic and diluted loss per share (cents) -attributable to equity holders - attributable to non-controlling interests |
(0.09c) - |
(0.22c) - |
(1.96c) (0.44c) |
6. |
Share Capital |
|
|
|
Ordinary shares of no par value |
|
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|
|
Allotted and fully paid |
|
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|
|
Number |
$'000 |
|
|
|
|
|
At |
|
284,993,582 |
13,897 |
|
Issue of shares |
|
|
16,347,351 |
674 |
At |
|
301,340,933 |
14,571 |
|
Issue of shares |
|
442,501,710 |
1,293 |
|
At |
|
743,842,643 |
15,864 |
|
Issue of shares |
|
|
32,891,303 |
92 |
At |
|
|
776,733,946 |
15,956 |
On
The following shares were issued upon the conversion of
Date |
Number of Shares |
Issue price |
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4,889,914 |
2.5p |
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3,709,138 |
1.7p |
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8,099,512 |
0.8p |
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9,402,198 |
0.6p |
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On
On
On 4 September 10,000,000 warrants were exercised at 0.3p and 1,250,000 shares were issued to settle advisory fees at 3.0p per share.
On
This information is provided by RNS