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Interim Results for the six months ended
Chairman's Statement
The Board presents the interim results for the six months ended
Review of Investments
Investment in
The Company maintains its 10% equity interest in BTHL acquired in
BTHL has advised that despite a difficult tungsten price environment, it has continued to focus on the development of its flagship Bodó mine in the Currais Novos region of Rio Grande do Norte state,
It is expected that BTHL will now be on track to reach its Phase I target of 150 tonnes per day of ROM ore from underground by
Since October last year, mining of ore from underground has been suspended and the focus has been entirely on development of the main shafts. A total of 92m of underground development was completed along with the associated infrastructure and BTHL is now preparing to begin first production from the Central decline. Development has been slow as the rock strength in some areas is poor and needs additional support. These areas coincide with the highest grade ore and assays taken have returned over 1.5% WO3 content. The typical grade for an underground tungsten mine is in the order of 0.5% and this grade is the reason that the Bodó mine can be cash positive even at the current low tungsten prices.
The treatment plant has been working on reduced hours and exclusively treating reject material stockpiled on site. Since
Investment in
The Company currently owns a 2% interest in a special purpose company,
In
In
Flow testing operations commenced in
Based on analysis of published reports from all significant
The way forward on Horse Hill will now involve seeking regulatory permissions to conduct extended production tests from all 3 zones at the site, followed by a horizontal sidetrack in the Kimmeridge and a possible new Portland development well.
All of the reviews and reports mentioned above state that the OIP volumes estimated should not be construed as recoverable resources or reserves.
Finance Review
The Company's net loss after taxation for the period was
Current assets including cash at
On
Outlook
The past year has seen exceptionally challenging circumstances for natural resource companies, with commodity prices under severe pressure and a regulatory environment that has seen the introduction of new rules for investing companies on AIM. Despite these headwinds the board is pleased with the progress it has made with its two major investments.
As reported in the press, the flow test at Horse Hill has produced the highest flow rates of any onshore wildcat well in the
We are also pleased that BTHL has so far been able to complete work on the underground development on time and within budget and wait expectantly for the rewards as the mine moves to a cash positive situation which management have indicated to us is expected to be during the 2nd half of this year.
The company also has a stake in Noricum which has multiple (gold and copper) near term production targets identified at its Bolnisi project in
In summary, during these tough times the board will vigorously pursue opportunistic acquisitions as funding becomes more challenging for many small companies. With cash at bank and no debt we are strongly placed to pick over the assets of those that fall by the wayside.
The Board would like to take this opportunity to thank our shareholders for their continued support and I look forward to reporting further progress over the next period and beyond.
Chairman
For further information, please contact:
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+44 (0) 20 7440 0640 |
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Nominated Adviser and Joint Broker: |
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James Caithie/ |
+44 (0) 20 7148 7900 |
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Joint Broker: |
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Peterhouse Corporate Finance |
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+44 (0) 20 7469 0930 |
The interim results will be available electronically on the Group's website: www.evocutis.com.
Glossary
discovery |
a discovery is a petroleum accumulation for which one or several exploratory wells have established through testing, sampling and/or logging the existence of a significant quantity of potentially moveable hydrocarbons |
electric logs |
tools used within the wellbore to measure the rock and fluid properties of surrounding rock formations |
flow test |
a flow test or well test involves testing a well by flowing hydrocarbons to surface, typically through a test separator. Key measured parameters are oil and gas flow rates, downhole pressure and surface pressure. The overall objective is to identify the well's capacity to produce hydrocarbons at a commercial flow rate |
limestone |
a sedimentary rock predominantly composed of calcite (a crystalline mineral form of calcium carbonate) of organic, chemical or detrital origin. Minor amounts of dolomite, chert and clay are common in limestones. Chalk is a form of fine-grained limestone |
mean |
or expected value, is the probability-weighted average of all possible values and is a measure of the central tendency either of a probability distribution or of the random variable characterised by that distribution |
P50 |
a 50% probability that a stated volume will be equalled or exceeded |
reservoir pressure depletion |
a reduction in reservoir pressure as indicated by downhole pressure gauges positioned in the well close to the zone being tested |
sandstone |
a clastic sedimentary rock whose grains are predominantly sand-sized. The term is commonly used to imply consolidated sand or a rock made of predominantly quartz sand |
ROM |
run of mine ore refers to ore in its natural, unprocessed state just as it is when blasted. |
WO3 |
Tungsten oxide, also known as tungsten trioxide or tungstic anhydride |
Mtu |
metric tonne units |
OIP |
oil in place - the quantity of oil or petroleum that is estimated to exist originally in naturally occurring accumulations before any extraction or production |
Interim statement of comprehensive income - unaudited
For the six months ended
|
Unaudited |
Unaudited |
Audited |
|
£'000 |
£'000 |
£'000 |
Continuing operations |
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Administrative costs |
(35) |
(57) |
(373) |
Reversal of/(Impairment) of available-for-sale asset |
- |
- |
72 |
Loss on disposal of available for sale asset |
- |
- |
(66) |
Finance income |
- |
- |
- |
Loss before tax |
(35) |
(57) |
(367) |
Taxation |
- |
- |
- |
Loss for the period from continuing operations |
(35) |
(57) |
(367) |
Discontinued operations |
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Loss for the period from discontinued operations |
- |
(5) |
(9) |
Loss for the period and total comprehensive loss attributable to equity shareholders |
(35) |
(62) |
(376) |
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Other comprehensive income |
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Increase in value of available for sale asset |
(50) |
- |
21 |
Other comprehensive income/(expenditure) for the period net of tax |
(50) |
- |
21 |
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Total comprehensive income/(expenditure) for the period |
(85) |
(62) |
(355) |
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Loss per ordinary share |
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Basic and diluted - continuing operations |
(0.004p) |
(0.01p) |
(0.07p) |
Basic and diluted - discontinued operations |
(0.004p) |
(0.00p) |
(0.07p) |
Interim statement of financial position - unaudited
As at
|
Unaudited |
Unaudited |
Audited |
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£'000 |
£'000 |
£'000 |
ASSETS |
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Non-current assets |
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Intangible assets |
- |
164 |
- |
Available for sale investments |
1,169 |
138 |
1,219 |
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1,169 |
302 |
1,219 |
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Current assets |
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Trade and other receivables |
216 |
308 |
51 |
Cash and cash equivalents |
158 |
1,277 |
452 |
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374 |
1,585 |
503 |
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Total assets |
1,543 |
1,887 |
1,722 |
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LIABILITIES |
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Current liabilities |
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Trade and other payables |
(74) |
(73) |
(154) |
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(74) |
(73) |
(154) |
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Total liabilities |
(74) |
(73) |
(154) |
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Net assets |
1,469 |
1,814 |
1,568 |
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EQUITY |
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Equity attributable to equity holders of the company |
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Ordinary share capital |
73 |
1,802 |
73 |
Deferred share capital |
1,729 |
- |
1,729 |
Share premium reserve |
9,172 |
9,199 |
9,186 |
Share-based payments reserve |
174 |
114 |
174 |
Available for sale asset reserve |
(29) |
- |
21 |
Retained earnings |
(9,650) |
(9,301) |
(9,615) |
Total equity |
1,469 |
1,814 |
1,568 |
Interim statement of changes in equity - unaudited
For the six months ended
|
Ordinary Share Capital |
Deferred share capital |
Share Premium |
Available for sale asset reserve |
Share Based Payment Reserve |
Retained earnings |
Total |
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£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
Unaudited |
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At |
1,747 |
- |
7,634 |
|
114 |
(9,239) |
256 |
Loss for the six month period ended |
- |
- |
- |
|
- |
(62) |
(62) |
Total comprehensive loss |
- |
- |
- |
|
- |
(62) |
(62) |
Share issue |
55 |
- |
1,655 |
|
- |
- |
1,710 |
Cost of share issue |
- |
- |
(90) |
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- |
- |
(90) |
At |
1,802 |
- |
9,199 |
|
114 |
(9,301) |
1,814 |
|
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|
|
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|
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Audited |
|
|
|
|
|
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At |
1,747 |
- |
7,634 |
- |
114 |
(9,239) |
256 |
|
|
|
|
|
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Increase in value of available for sale assets |
- |
- |
- |
21 |
- |
- |
21 |
Loss for the year |
- |
- |
- |
- |
- |
(376) |
(376) |
Total comprehensive loss |
- |
- |
- |
- |
- |
(376) |
(355) |
|
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|
|
|
|
|
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Transactions with owners: |
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|
|
|
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Reorganisation of share capital |
(1,729) |
1,729 |
- |
- |
- |
- |
- |
Issue of share capital |
55 |
- |
1,655 |
- |
- |
- |
1,710 |
Share issue costs |
- |
- |
(103) |
- |
- |
- |
(103) |
Share-based payment charge |
- |
- |
- |
- |
60 |
- |
60 |
At |
73 |
1,729 |
9,186 |
21 |
174 |
(9,615) |
1,568 |
|
|
|
|
|
|
|
|
Unaudited |
|
|
|
|
|
|
|
At |
|
|
|
|
|
|
|
Decrease in value of available for sale assets |
- |
- |
- |
(50) |
- |
- |
(50) |
Loss for the six month period ended |
- |
- |
- |
- |
- |
(35) |
(11) |
Total comprehensive loss |
- |
- |
- |
(50) |
- |
(35) |
(61) |
|
|
|
|
|
|
|
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Cost of share issue |
- |
- |
(14) |
- |
- |
- |
(14) |
At |
73 |
1,729 |
9,172 |
(29) |
174 |
(9,650) |
1,493 |
Interim statement of cash flows - unaudited
For the six months ended
|
Unaudited 31 January 2016 |
Unaudited 31 January 2015 |
Audited 31 July 2015 |
|
£'000 |
£'000 |
£'000 |
Cash flows from operating activities |
|
|
|
Loss after tax |
(35) |
(62) |
(376) |
Impairment of available-for-sale asset |
- |
- |
(72) |
Loss on sale of AFS Asset |
- |
- |
66 |
Revaluation of AFS Impairment losses |
- |
- |
- |
Share-based payment charges |
- |
- |
60 |
Operating cash outflow before changes in working capital |
(35) |
(62) |
(322) |
Movement in trade and other receivables |
(165) |
(293) |
(36) |
Movement in trade and other payables |
(80) |
52 |
133 |
Cash flow from operations |
(280) |
(303) |
(225) |
Tax received |
- |
- |
- |
Net cash flows used in operating activities |
(280) |
(303) |
(225) |
|
|
|
|
Cash flow from investing activities |
|
|
|
Payments for investments in AFS assets |
- |
- |
(1,198) |
Disposal proceeds from sale of AFS Asset |
- |
- |
144 |
Payments to acquire intangible assets |
- |
(164) |
- |
Finance income |
- |
- |
- |
Net cash outflow from investing activities |
- |
(164) |
(1,054) |
|
|
|
|
Cash flows from financing activities |
|
|
|
Proceeds on issuing of ordinary shares |
- |
1,710 |
1,710 |
Cost of issue of ordinary shares |
(14) |
(90) |
(103) |
Net cash inflow from financing activities |
(14) |
1,620 |
1,607 |
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|
|
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Net decrease in cash and cash equivalents |
(294) |
1,153 |
328 |
Cash and cash equivalents at start of period |
452 |
124 |
124 |
Cash and cash equivalents at end of period |
158 |
1,277 |
452 |
Notes to the interim report
For the six months ended
1 Basis of preparation
As permitted IAS 34, 'Interim Financial Reporting' has not been applied to these half-yearly results. The financial information of the Company for the six months ended
The financial information shown in this publication is unaudited and does not constitute statutory accounts as defined in Section 434 of the Companies Act 2006. The comparative figures for the financial year ended
2 Loss per share
The calculation of the loss per share is based on the loss attributable to ordinary shareholders divided by the weighted average number of shares in issue during the period.
|
Unaudited |
Unaudited |
Audited |
|
£'000 |
£'000 |
£'000 |
Loss on continuing activities |
(35) |
(57) |
(367) |
Loss on discontinuing activities |
- |
(5) |
(9) |
Loss on ordinary activities after tax |
(35) |
(62) |
(376) |
Weighted average number of shares for calculating basic loss per share |
724,675,828 |
415,980,348 |
569,059,389 |
Basic and diluted - continuing activities |
(0.004) |
(0.01) |
(0.069) |
Basic and diluted - discontinued activities |
(0.000) |
(0.00) |
(0.001) |
Basic and diluted loss per share (pence) |
(0.004) |
(0.01) |
(0.070) |
However, due to losses incurred in the year there is no dilutive effect from the potential exercise of the share options in existence.
3 Post balance sheet events
On
The Company also announced on
This information is provided by RNS