TIDMMNC

RNS Number : 6679A

Metminco Limited

13 September 2018

 
 AIM ANNOUNCEMENT   13(th) September 2018 
-----------------  ---------------------- 
 
 

Half Year Report

Metminco Limited (ASX: MNC; AIM: MNC) is pleased to announce its Half Yearly Report for the period June 30(th) 2018.

This announcement is an abridged version of the announcement. For the full announcement, please refer to the Company's website at www.metminco.com.au

Highlights

Principal Activities

The Group's Quinchia Gold Portfolio encompasses a potential near-term producing asset, the Miraflores Gold Project, as well as assets with substantial upside potential including the significant gold porphyry system targets of Tesorito, Dosquebrados and Chuscal. A Plan of works was submitted to the Colombian Mining Agency in January 2018 for the construction of the proposed Miraflores gold mine.

While the Company also retains its 100% Chilean Projects, the primary focus is on the Miraflores Gold Project and as such the Chilean projects are on care and maintenance. These Chilean projects provide significant exposure to copper through Mollacas on which a mining study announced in 2014 demonstrated robust economics for development of the Mollacas Project, which is subject to resolution of a dispute with the land holder. The Vallecillo Project is a polymetallic deposit with identified resources.

Quinchia Gold Portfolio Colombia

In June 2016 the Company completed the acquisition of Miraflores Compañia Minera ("Miraflores Compañia") from RMB Resources Australia Pty Ltd. Miraflores Compañia owns 100% of the Quinchia Gold Portfolio located within Colombia's Middle Cauca Belt approximately 90km WNW of the Colombian capital of Bogota and 55 km to the north of Pereira, the capital of the Department of Risaralda.

The Quinchia Portfolio contains several gold deposits and exploration prospects including Miraflores, Dosquebradas, Tesorito and Chuscal.

A review of the Columbian concessions during the half year resulted in the decision to relinquish a number of concessions and, in line with the Company's accounting policies, to impair some of the capitalised exploration on certain concessions.

During the half year period a 1,500m diamond drilling program was commenced at Tesorito, part of the Quinchia Gold Portfolio. Results from the program were announced in August 2018 and included best intercept of 64m @ 1.67g/t Au from 144m within 253m @ 1.10 g/t from 2.9m from hole TS-DH-07 (refer ASX announcement of 30 August 2018).

Negotiations commenced with the owner of the Chuscal licence applications to form a joint venture. These discussions are ongoing as at the date of this report.

The Company submitted the Plan of Work ("PTO") to the Colombian Mining Agency for mine development approval for the Miraflores Gold Project in January 2018. Colombian regulations require both the PTO and Environmental Impact Assessment approvals prior to commencement of operations. As at the date of this report, approval of the PTO is awaited.

The critical path for the development of the project remains the completion of the EIA, including the validation of the impacts on the local communities and the gaining of the social licence for the project. Final, seasonal water monitoring was completed during the quarter and will inform the EIA submission.

Mollacas, Vallecillo, Loica Projects, Chile

These projects remained on care and maintenance during the reporting period.

Corporate

During the half year the new management of Company undertook a number of measures to reduce on-going costs, which necessitated some additional short-term expenses. The Company's registered office was moved from Sydney to Melbourne.

Matters subsequent to the end of the financial period

Matters that have arisen in the interval between the end of the half year ended 30 June 2018 and the date of this report of a material or unusual nature are as follows:

Appointment of Nick Winer (2 August 2018) as Director of Exploration, based in Medellin, Colombia

Nick is a geologist with over 30 years' experience in gold, base metals in South America and will lead the Company's activities in Colombia, in particular, the advancement of the portfolio of gold assets in the Quinchia district.

On 13(th) September 2018, the Company entered into an unsecured loan facility arrangement with private investors to the value of $500,000 at a 12% coupon rate paid quarterly maturing 6 months from date of issue or earlier by the Company on 30 days' notice or on completion of a proposed capital raising.

On 13(th) September 2018, the Company entered into a Trading Halt on the ASX pending a corporate transaction and capital raising.

As at the date of this report, the Directors are not aware of any further matters that have arisen that have significantly affected, or may significantly affect, the operations of the Company

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

For the half year ended 30 June 2018

 
                                                   Note 
                                                           30 June 2018   30 June 2017 
                                                                 $              $ 
                                                          -------------  ------------- 
 
Other income                                                      2,496              - 
 
Administration expenses                                       (122,692)      (288,047) 
Corporate expenses                                          (1,685,036)    (1,267,766) 
Occupancy expense                                              (67,677)       (51,860) 
Exploration expenditure written 
 off                                                 9      (2,485,725)       (87,880) 
Share based payments expense                        12        (781,607)              - 
Loss on sale of asset                                                 -   (27,165,722) 
Unrealised loss on derivative asset                                   -    (1,553,481) 
Realised loss on derivative asset                    5        (228,273)      (106,118) 
Profit on disposal of assets                                          -         23,570 
Finance costs                                                 (230,253)      (229,730) 
Loss before income tax                                      (5,598,767)   (30,727,034) 
Income tax expense                                                    -              - 
                                                          -------------  ------------- 
Loss for the period from continuing 
 operations                                                 (5,598,767)   (30,727,034) 
Other comprehensive income: 
 Items that may be reclassified subsequently 
 to profit or loss: 
Exchange differences on translating 
 foreign controlled entities                                    435,451    (1,430,655) 
                                                          -------------  ------------- 
Total comprehensive Loss for the 
 period                                                     (5,163,316)   (32,157,689) 
                                                          =============  ============= 
 
Loss attributable to: 
     Members of the parent entity                           (5,598,767)   (30,727,034) 
                                                            (5,598,767)   (30,727,034) 
                                                          =============  ============= 
Total comprehensive (loss) attributable 
 to: 
     Members of the parent entity                           (5,163,316)   (32,157,689) 
                                                            (5,163,316)   (32,157,689) 
                                                          =============  ============= 
Loss per share 
     From continuing operations: 
     Basic loss per share (cents)                                (4.83)        (25.38) 
     Diluted loss per share (cents)                              (4.83)        (25.38) 
 
          These financial statements should be read in conjunction with the 
                                  accompanying notes. 
 
 

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As at 30 June 2018

 
                                             Note 
                                                    30 June 2018   31 December 2017 
                                                          $                $ 
                                                   -------------  ----------------- 
    ASSETS 
    CURRENT ASSETS 
    Cash and cash equivalents                          1,705,998            834,377 
    Trade and other receivables               4           99,502            167,382 
    Derivative asset                          5                -            272,683 
    Asset held for sale                       6        2,726,512          2,586,122 
    Other assets                              7          151,880             48,610 
                                                   -------------  ----------------- 
    TOTAL CURRENT ASSETS                               4,683,892          3,909,174 
                                                   -------------  ----------------- 
    NON-CURRENT ASSETS 
    Property, plant and equipment             8          740,571            569,642 
    Exploration and evaluation expenditure    9       10,352,562         12,015,128 
                                                   -------------  ----------------- 
    TOTAL NON-CURRENT ASSETS                          11,093,132         12,584,770 
                                                   -------------  ----------------- 
    TOTAL ASSETS                                      15,777,024         16,493,944 
                                                   -------------  ----------------- 
 
      LIABILITIES 
    CURRENT LIABILITIES 
    Trade and other payables                  10       3,907,227          3,392,074 
    Provisions                                11         214,300            187,214 
                                                   -------------  ----------------- 
    TOTAL CURRENT LIABILITIES                          4,121,527          3,579,288 
                                                   -------------  ----------------- 
    NON-CURRENT LIABILITIES 
     Trade and other Payables                 10       1,714,678          4,322,867 
    TOTAL NON-CURRENT LIABILITIES                      1,714,678          4,322,867 
                                                   -------------  ----------------- 
    TOTAL LIABILITIES                                  5,836,205          7,902,155 
                                                   -------------  ----------------- 
    NET ASSETS                                         9,940,819          8,591,789 
                                                   -------------  ----------------- 
    EQUITY 
    Issued capital                            13     338,729,969        332,987,792 
    Other reserves                                  (28,685,744)       (29,914,047) 
    Accumulated losses                             (300,103,406)      (294,481,956) 
                                                   -------------  ----------------- 
    TOTAL EQUITY                                       9,940,819          8,591,789 
                                                   -------------  ----------------- 
 
         These financial statements should be read in conjunction with the 
                                accompanying notes. 
 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the half year ended 30 June 2018

 
                      Issued     Accumulated    Option    Convertible     Foreign     Acquisition      Total 
                      Capital       Losses      Reserve    Note equity    Currency       Reserve 
                                                             reserve     Translation 
                                                                           Reserve 
                        $             $            $                 $             $       $                   $ 
                   -----------  -------------  ---------  ------------  ------------  ------------  ------------ 
Balance at 1 
 January 2017      329,032,074  (259,254,583)     54,686             _    11,309,289  (41,506,662)    39,634,804 
Loss attributable 
 to members of 
 the parent 
 entity                      _   (30,727,034)          _             _             _             _  (30,727,034) 
Other 
 comprehensive 
 loss                        _              _          _             _   (1,430,655)             _   (1,430,655) 
                   -----------  -------------  ---------  ------------  ------------  ------------  ------------ 
Total 
 comprehensive 
 loss for the 
 period                      _   (30,727,034)          _             _   (1,430,655)             _  (32,157,689) 
Shares issued 
 during the 
 period              4,375,000              _          _             _             _             _     4,375,000 
Transaction 
 costs               (314,703)              _          _             _             _             _     (314,703) 
Equity component 
 of convertible 
 note                        _              _          _        11,468             _             _        11,468 
Options issued 
 during the 
 period                      _              _    426,172             _             _             _       426,172 
Balance at 30 
 June 2017         333,092,371  (289,981,617)    480,858        11,468     9,878,634  (41,506,662)    11,975,052 
                   ===========  =============  =========  ============  ============  ============  ============ 
 
Balance at 1 
 January 2018      332,987,792  (294,481,956)   480,860      11,448      11,100,307   (41,506,662)     8,591,789 
Loss attributable 
 to members of 
 the parent 
 entity                      _    (5,598,767)          _             _             _             _   (5,598,767) 
Other 
 comprehensive 
 loss                        _              _          _             _       435,451             _       435,451 
                   -----------  -------------  ---------  ------------  ------------  ------------  ------------ 
Total 
 comprehensive 
 loss for the 
 period                      _    (5,598,767)          _             _       435,451             _   (5,163,316) 
Shares issued 
 during the 
 period              6,282,789              _          _             _             _             _     6,282,789 
Transaction 
 costs               (540,612)              _          _             _             _             _     (540,612) 
Equity component 
 of convertible 
 note                        -              _          _      (11,468)             _             _      (11,468) 
Options issued 
 during the 
 period                      -              -    781,617             _             _             _       781,617 
Options expired 
 -prior period 
 adjustment                  -         54,687   (54,687)             -             -             -             - 
Balance at 30 
 June 2018         338,729,968  (300,026,036)  1,207,790             -    11,535,758  (41,506,662)     9,940,818 
                   ===========  =============  =========  ============  ============  ============  ============ 
 

CONSOLIDATED STATEMENT OF CASH FLOWS

For the half year ended 30 June 2018

 
                                                 Note 
                                                         30 June 2018   30 June 2017 
                                                               $              $ 
                                                        -------------  ------------- 
    CASH FLOWS FROM OPERATING ACTIVITIES 
    Payments to suppliers and employees                   (1,677,704)    (1,573,133) 
    Interest received                                           2,496              - 
    Net cash used in operating activities                 (1,675,208)    (1,573,133) 
                                                        -------------  ------------- 
    CASH FLOWS FROM INVESTING ACTIVITIES 
    Purchase of property, plant and equipment               (170,394)         23,570 
    Payments for exploration expenditure                    (712,408)    (1,203,307) 
    Payment of deferred consideration                     (1,000,000)              - 
    Proceeds from sale of Los Calatos                               -      6,601,155 
    Net cash (used in)/provided by investing 
     activities                                           (1,882,802)      5,421,418 
                                                        -------------  ------------- 
    CASH FLOWS FROM FINANCING ACTIVITIES 
    Proceeds from issue of shares                           6,282,789      2,020,035 
    Payments in respect to capital raisings                 (540,612)      (314,704) 
    Cash received from convertible notes                            -        750,000 
    Cash paid for convertible notes redemption              (842,383)              - 
    Cash received from derivative asset                             -         35,549 
    Cash received from equity swap                             44,410              - 
                                                        -------------  ------------- 
    Net cash provided by financing activities               4,944,204      2,490,880 
                                                        -------------  ------------- 
 
    Net increase in cash held                               1,386,194      6,339,165 
    Cash and cash equivalents at beginning 
     of financial period                                      834,377         71,548 
    Effect of exchange rates on cash holdings 
     in foreign currencies                                  (514,573)       (60,782) 
                                                        -------------  ------------- 
    Cash and cash equivalents at end of 
     financial period                                       1,705,998      6,349,931 
                                                        =============  ============= 
 

These financial statements should be read in conjunction with the accompanying notes.

This announcement contains inside information as stipulated under Article 7 of the Market Abuse Regulation (EU) No. 596/2014.

For further enquiries contact:

Kevin Wilson

Executive Chairman Metminco Limited;

kwilson@metminco.com.au

+61 409 942 355

 
 
   For further information, please contact: 
   METMINCO LIMITED 
 Kevin Wilson                                              +61 409 942 355 
 
 NOMINATED ADVISOR AND JOINT BROKER 
 RFC Ambrian 
 Australia 
 Andrew Thomson / Alena Broesder                            +61 2 9250 0000 
 United Kingdom 
 Charlie Cryer                                   +44 20 3440 6800 
 
 JOINT BROKER 
 Stockdale Securities 
 United Kingdom 
  Corporate Finance- Robert Finlay/ 
  Ed Thomas 
  Sales- Zoe Alexander                                       +44 20 7601 6100 
 
 PUBLIC RELATIONS 
 Camarco 
  United Kingdom 
 Gordon Poole / Nick Hennis                                 +44 20 3757 4997 
 
 

Forward Looking Statement

All statements other than statements of historical fact included in this announcement including, without limitation, statements regarding future plans and objectives of Metminco are forward-looking statements. When used in this announcement, forward-looking statements can be identified by words such as "anticipate", "believe", "could", "estimate", "expect", "future", "intend", "may", "opportunity", "plan", "potential", "project", "seek", "will" and other similar words that involve risks and uncertainties.

These statements are based on an assessment of present economic and operating conditions, and on a number of assumptions regarding future events and actions that, as at the date of this announcement, are expected to take place. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties, assumptions and other important factors, many of which are beyond the control of the Company, its directors and management of Metminco that could cause Metminco's actual results to differ materially from the results expressed or anticipated in these statements.

The Company cannot and does not give any assurance that the results, performance or achievements expressed or implied by the forward-looking statements contained in this announcement will actually occur and investors are cautioned not to place undue reliance on these forward-looking statements. Metminco does not undertake to update or revise forward-looking statements, or to publish prospective financial information in the future, regardless of whether new information, future events or any other factors affect the information contained in this announcement, except where required by applicable law and stock exchange listing.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

END

IR FKNDPABKKCCD

(END) Dow Jones Newswires

September 13, 2018 03:58 ET (07:58 GMT)

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