Imperial Minerals Plc - Interim Results to 31 December 2017 PR Newswire

19 March 2017

Imperial Minerals Plc
(“Imperial”, the “Group” or the “Company”)

Unaudited interim report for the six months to 31 December 2017

Dear Shareholder,

I am pleased present the unaudited financial results for Imperial Minerals Plc for the half-year ended 31 December 2017.

During the period Imperial has continued its highly selective search for a natural resources project which a) fits our target investment criteria b) is fundable moving forward and c) is corporately possible given our very small capital structure and severely limited funds.

I’m pleased to say that deal flow remains strong – an uptick in commodity prices coupled with a return of risk capital (in certain jurisdictions) to the micro capital resources sector bodes well for the future.

Our targeting process continues to specifically review commodities that attract market and industry support – most particularly gold, battery inputs such as lithium and cobalt and metals that are in cyclical supply shortfall such as zinc.

Imperial continues to be run leanly with quoted costs negotiated as low as possible. However, to stay listed and continue to operate in 2018, Imperial will need to seek additional capital to continue its existence.

Financial Review

Its cash reserves will be used in the short term to cover travel costs, professional consultancy fees, initial due diligence and other costs incidental to the identification and development of acquisition opportunities.

During the six month period ended 31 December 2017, the Company made a pre-tax loss of £39,349 (2016: loss of £92,026). Cash at bank at the end of December 2017 was £37,370 (30 June 2017: £72,673).

Total expenses during the period were £39,352 (2016: £92,029) which consisted of corporate and administration expenses.

Financial Position

The Group’s Statement of Financial Position as at 31 December 2017 and comparatives at 31 December 2016 and 30 June 2017 are summarised below:


                    31 Dec 2017 31 Dec 2016 30 June 2017

                         £           £           £

Current assets        43,274      79,699       74,025

Non current assets       -        13,500         -

Total assets          43,274      93,199       74,025

Current liabilities   12,956       6,471       4,358

Total liabilities     12,956       6,471       4,358

Net assets            30,318      86,728       69,667



James Hamilton

Chairman

Imperial Minerals Plc

16 March 2018

The Directors of the Company accept responsibility for the contents of this announcement.

For further information please contact:

Imperial Minerals plc
Russell Hardwick
Tel: + 61 417 714 292

Peterhouse Corporate Finance Limited
Guy Miller and Mark Anwyl
Tel: 020 7469 0930

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the six months ended 31 December 2017


                        6 months to 31 Dec 6 months to 31 Dec Year ended 30 June
                          2017 Unaudited     2016 Unaudited      2017 Audited

                   Note         £                  £                  £

Continuing
operations

Revenue                         -                  -                  -

Impairment of                   -               (74,288)          (361,777)
receivable and
loss on disposal
of available for
sale investment

Administrative               (39,352)           (17,741)           (36,479)
expenses

Loss before                  (39,352)           (92,029)          (398,256)
taxation

Finance income –                3                  3                  5
interest
receivable

Income tax          2           -                  -                  -

Loss for the year            (39,349)           (92,026)          (398,251)
attributable to
the equity
shareholders of
the parent

Other
comprehensive
income

Items that may be
subsequently
reclassified to
profit or loss

Prior year                      -                70,844               -
reversal of
unrealised changes
in value of
available for sale
financial asset

Unrealised changes              -               (28,500)              -
in value of
available for sale
financial assets

Reclassification                -                  -               329,908
of cumulative loss
on available for
sale assets on
disposal

Other                           -                42,344            329,908
comprehensive
income for the
year, net of tax

Total                        (39,349)           (49,682)           (68,343)
comprehensive
income for the
period/year
attributable to
the equity
shareholders of
the parent

Loss per share

Basic and diluted            (0.128p)           (0.316p)           (1.329p)
loss per share      3
attributable to
the equity
shareholders of
the parent (pence)



CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As at 31 December 2017


                                        As at       As at     As at 30 June 2017
                                      31 Dec 2017 31 Dec 2016      Audited
                                       Unaudited   Unaudited

                                           £           £              £

ASSETS

Non-current assets

Financial assets – Available for sale      -        13,500            -

Total non-current assets                   -        13,500            -

Current assets

Trade and other receivables              5,904      13,741          1,352

Cash and cash equivalents               37,370      65,958          72,673

Total current assets                    43,274      79,699          74,025

TOTAL ASSETS                            43,274      93,199          74,025

LIABILITIES

Current Liabilities

Trade and other payables                12,956       6,471          4,358

Total current liabilities               12,956       6,471          4,358

TOTAL LIABILITIES                       12,956       6,471          4,358

NET ASSETS                              30,318      86,728          69,667

EQUITY ATTRIBUTABLE TO OWNERS OF THE
COMPANY

Share capital                           201,700     201,700        201,700

Share premium                           855,588     855,658        855,658

Other reserve                            1,670         -            1,600

Available for sale reserve                 -       (287,564)          -

Retained losses                       (1,028,640)  (683,066)      (989,291)

TOTAL EQUITY                            30,318      86,728          69,667



CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the six months ended 31 December 2017


               Share   Share  Shares to be  Retained   Available Total Equity
              capital premium issued under   losses    for sale
                                options                 reserve

                 £       £         £            £          £          £

At 1 July     199,950 822,408    24,241     (615,281)  (329,908)   101,410
2016

Loss for the     -       -         -        (92,026)       -       (92,026)
period

Other            -       -         -            -       42,344      42,344
comprehensive
income for
the period

Total            -       -         -        (92,026)    42,344     (49,682)
comprehensive
income for
the period

Issue of       1,750  33,250       -            -          -        35,000
ordinary
shares

Expiry of        -              (24,241)     24,241        -          -
share options

Balance at 31 201,700 855,658      -        (683,066)  (287,564)    86,728
Dec 2016

At 1 July     201,700 855,658    1,600      (989,291)      -        69,667
2017

Loss for the     -       -         -        (39,349)       -       (39,349)
period

Other            -       -         -            -          -          -
comprehensive
income for
the period

Total            -       -         -        (39,349)       -       (39,349)
comprehensive
income for
the period

Issue of         -     (70)        70           -          -          -
share options

Expiry of        -       -         -            -          -          -
share options

Balance at 31 201,700 855,588    1,670     (1,028,640)     -        30,318
Dec 2017



CONSOLIDATED STATEMENT OF CASH FLOWS

For the six months ended 31 December 2017


                   Note 6 months to 31 Dec 6 months to 31 Dec Year ended 30 June
                               2017              2016                2017
                            Unaudited          Unaudited           Audited

                                £                  £                  £

Cash flows from     4        (35,306)           (11,908)           (34,194)
operating
activities

Net cash used in             (35,306)           (11,908)           (34,194)
operating
activities

Cash flows from
investing
activities

Interest received               3                  3                  5

Proceeds from                   -                  -                28,999
disposal of
available for sale
financial assets

Cash flows                      3                  3                29,004
generated from
investing
activities

Cash flows from
financing
activities

Proceeds from                   -                35,000             35,000
issue of shares

Cash Flows                      -                35,000             35,000
generated from
financing
activities

Net increase/                (35,303)            23,095             29,810
(decrease) in cash
and cash
equivalents

Cash and cash                 72,673             42,863             42,863
equivalents at
beginning of the
period

Cash and cash                 37,370             65,958             72,673
equivalents at end
of the period



NOTES TO THE FINANCIAL STATEMENTS

For the six months ended 31 December 2017

NOTE 1: BASIS OF PREPARATION

The condensed consolidated interim financial information of the Group for the six months ended 31 December 2017 which comprise the Company and its subsidiary (together referred to as the “Group) were approved by the Board on 16 March 2018.  The interim financial information has not been reviewed or audited. The interim financial information has been prepared in accordance with the recognition and measurement criteria of International Financial Reporting Standards (IFRS and IFRIC interpretations) issued by the International Accounting Standards Board (“IASB”) as adopted for use in the EU. The financial information for the six months to 31 December 2017 does not constitute statutory accounts of the Group.  This financial information has been prepared in accordance with the accounting policies that are expected to be applied in the Report and Accounts of Imperial Minerals PLC for the year ending 30 June 2018.  The statutory accounts for the year ended 30 June 2017 have been filed with the Registrar of Companies.  The auditor’s report on those accounts was unqualified, included reference to a material uncertainty relating to going concern and did not contain a statement under section 498(2)-(3) of the Companies Act 2006.

Going Concern

The financial statements have been prepared on a going concern basis notwithstanding that the Group incurred a net loss of £39,419 during the half year ended 31 December 2017.  The Directors have concluded that the current circumstances represents a material uncertainty that casts significant doubt upon the Group’s and Company’s ability to continue as a going concern and that, therefore, the Group and Company may be unable to realise its assets and discharge its liabilities in the normal course of business.

The Group and Company will be required to raise additional funds before being able to meet their contracted operating expenditure during the going concern period and further invest in existing projects and acquisition targets.  The Directors are confident that sufficient additional funds will become available in order to meet contracted operating expenditure.  The amount of funding for investment in projects and targets is unforeseen at the point of approval of these financial statements, however, the Group and Company will be required to raise additional funds either via an issue of equity or through the issuance of debt. 

Nevertheless, after making enquiries and considering the uncertainties described above, the Directors have a reasonable expectation that the Group and Company will have access to adequate resources to continue in operational existence for the foreseeable future.  For these reasons, they continue to adopt the going concern basis of accounting in preparing the Financial Statements.

Imperial Minerals plc, the legal parent, is domiciled and incorporated in the United Kingdom. The functional currency of Imperial Minerals plc is £ sterling.

The Financial Statements are presented in sterling (£), rounded to the nearest pound and have been prepared on the going concern basis.

NOTE 2: TAXATION

No taxation has been provided due to losses in the period.  No deferred tax asset has been recognised for past or current losses as the recoverability of any such assets is not probable in the foreseeable future.

NOTE 3:  LOSS PER SHARE

The calculation of the basic loss per share of 0.128 pence is based on the loss attributable to ordinary shareholders of £39,349 and on the weighted average number of ordinary shares of 30,745,000 in issue during the period.

In accordance with IAS 33, no diluted earnings per share is presented as the effect on the exercise of share options or warrants would be to decrease the loss per share.

NOTE 4: NOTES TO THE CASH FLOW STATEMENT


                       6 months to 31 Dec 6 months to 31 Dec Year ended 30 June
                              2017               2016               2017
                           Unaudited          Unaudited           Audited

                               £                  £                  £

Reconciliation of loss
from operations to
cash flows from
operating activities

Loss from operations        (39,349)           (92,026)          (398,251)

Interest receivable            3                  3                  5

Net loss from disposal         -                74,288            361,777
of available for sale
financial assets

Share options expense          -                  -                1,600

(Increase)/Decrease in      (4,553)             9,275              6,241
trade and other
receivables

Increase / (Decrease)        8,593             (3,448)            (5,566)
in trade and other
payables

Cash flow from              (35,306)           (11,908)           (34,194)
operating activities



NOTE 5:POST BALANCE SHEET EVENTS

There has not been any matter or circumstance occurring subsequent to the end of the half year, that has significantly affected or may significantly affect the operations of the Group, the results of those operations or the state of affairs of the Group in future financial years.

NOTE 6: FORWARD LOOKING STATEMENTS

This report contains certain forward looking statements, which include assumptions with respect to future plans, results and expenditures. The reader is cautioned that assumptions used in the preparation of such information may prove to be incorrect. All such forward looking statements involve substantial known and unknown risks and uncertainties, certain of which are beyond the Company's control. Please refer to the Company’s Annual Report available from the Company’s web site for a list of risk factors. The Company’s actual results could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits the Company will derive therefrom. All subsequent forward-looking statements, whether written or oral, attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. Furthermore, the forward-looking statements contained in this report are made as at the date of this report

NOTE 7: INTERIM REPORT

Copies of this interim report for the six months ended 31 December 2017 will be available from the offices of Imperial Minerals Plc, 2 Stone Buildings Lincolns Inn London WC2A 3TH, and on the company’s website www.imperialminerals.com