🕐18.12.12 - 08:54 Uhr
ORTAC RESOURCES INTERIM RESULTS HIGHLIGHT SOLID PROGRESS MADE IN SLOVAKIA - PFS
ON TRACK FOR COMPLETION Q1 2013
Ortac Resources Ltd / Epic: OTC / Market: AIM / Sector: Mining & Exploration
18 December 2012
Ortac Resources Limited (‘Ortac’ or ‘the Company’)
Interim Results
Ortac Resources Limited, the AIM listed exploration and development company currently engaged on the advancement of the Šturec precious metal deposit in Slovakia (‘Šturec’), is pleased to announce its unaudited financial results for the six months ended 30 September 2012.
Chairman’s Statement
Findings from the Scoping Study conducted on the company’s Šturec deposit were published in 2012 and serve to re-affirm the value and economic viability of this previously producing asset at Kremnica in Slovakia.
The potential for Šturec to become a positive economic generator for the region is one of the implications that is currently being discussed with the local community, following the Scoping Study findings.
Potential exists to add to the mineral development area with ancillary tourist and leisure developments to include a geothermal power project aligned with a health spa, wellness and sporting facilities as well as a visitor centre.
From an economic perspective, the Šturec Deposit has a current JORC compliant gold resource of 1.32 million ounces (‘Moz’), with over 1Moz in the Measured and Indicated categories located in a historically producing and proven gold-bearing mineral district.
The Scoping Study on the Šturec Deposit, which was finalised in January 2012, demonstrated highly attractive economic fundamentals including a post tax Net Present Value (8% discount rate) of US$153 million, a cash cost of
We are currently working towards final project definition and authority approval, and importantly in these turbulent markets, Ortac is fully funded to the completion of the Bankable Feasibility Study.
Considerable progress has been made on our technical Pre-Feasibility Study (‘PFS’), which remains on track for completion in Q1 2013.
In preparation for the detailed assessment of the mine, SRK Consultants (UK) Ltd (‘SRK’) has re-logged the Šturec drill core geo-technically, completed scanline surveys underground, and assisted in the re-interpretation of waste rock.
Macintosh probe testing has also been completed in preparation of the design details required for the tailings and waste rock management components, an aspect we are assessing closely in response to particular enquiries from local citizens.
GBM Mineral Engineering Consultants Ltd (‘GBM’) has also made significant progress with a review of metallurgical testwork, development of the project design criteria, draft flow sheet and site layout.
Detailed design and costing work is now underway for inclusion in the PFS.
Wardall Armstrong International Ltd (‘WAI’), responsible for the metallurgical test work for Šturec, has completed ore characterisation, crusher and abrasion tests.
The environmental and variability testing will be completed as a part of the Bankable or Definitive Feasibility Study.
A number of independent local Slovak environmental experts are collecting environmental baseline data to incorporate into the PFS.
As previously stated, a key focus during the period has been on our corporate social responsibility programme which is currently being co-designed with the local community by our team on the ground in Slovakia, led by astoneco management, as we explore sustainable development compliant solutions for investments built on the Šturec deposit.
Our focus is to ensure that maximum opportunities and benefits arising from Šturec are incorporated into local development and conservation plans and that all risks linked to extracting the gold and silver are credibly managed.
With this in mind, we are in open dialogue with the community to visualise the end product of our investments whilst addressing their concerns linked to a precious metals centre, a geothermal energy resource development and integrated tourism.
Over recent months Ortac has been made aware of comments made in the local Slovak press relating to the status of the legal rights of exploitation to the Kremnica Mining Licence Area (‘KMLA’), in which Ortac’s Šturec deposit is located.
The Board has recently obtained guidance from Slovak legal counsel as well as from the appropriate local authorities.
This has confirmed the fact that Ortac has exclusive rights to mine from the KMLA until at least June 2014.
This licence expiry date can be extended to take into account time taken up by environmental and social considerations.
The KMLA is defined as a combined surface and underground licence area where mining activities have been undertaken for many years.
Ortac will be updating stakeholders and shareholders alike on the state of the responsible project development process throughout 2013.
Ortac currently has a bulk sample mining application currently being considered for further environmental and social considerations.
The principal exploration licence associated with the Šturec licence, the contiguous Lutila licence, has recently been renewed and is valid until September 2016, subject to certain expenditure requirements.
The Lutila area, we believe, has particularly good prospects for the discovery of a new underground resource, approximately 6 kilometres to the south of Šturec.
Next year we plan to advance exploration here either on our own account or in joint venture.
Financial & Corporate Overview
During the period under review, we have further strengthened our Ortac team with a number of key appointments.
In June 2012, Viktor Pomichal, a native Slovak joined as Managing Director in Slovakia.
Viktor, has been a crucial asset to our progress within the community and with extensive experience and contacts in investment and development within Eastern Europe, we look forward to working with him as we set out to fulfil our strategies.
Paul Heber joined the Board as a Non-Executive Director.
As a former investment manager and stockbroker with over 25 years’ experience in global equity markets and experience on the boards of other growth resource companies.
We are delighted to have him as a part of our strengthened Board and management team.
Post-period end we were also delighted to announce the appointment of RFC Ambrian Limited as our joint broker, in conjunction with Seymour Pierce Limited who continue to act as our NOMAD.
We look forward to working with the RFC Ambrian team to help deliver Ortac’s investment case to the market.
As a mark of my confidence in the Ortac story I acquired 4 million ordinary shares in August 2012 which increased my holding in the Company to 7.06% of the issued ordinary share capital.
September saw a similar vote of confidence when our key institutional shareholder, Henderson Global Investors (‘Henderson’), increased its holding to 12.05%.
In keeping with our on-going relationship with Henderson, in May 2012 we entered into a £20 million Equity Financing Facility with Darwin Strategic Limited, a company majority owned by funds managed by the Henderson Volantis Capital Team, a subsidiary of Henderson Global Investors.
In November 2012 we invited a group of analysts, journalists and investors for a site visit to Kremnica to meet our team on the ground, view the old underground historical mine and the proposed area for the open-pit for the Šturec deposit.
The trip was highly successful and the feedback received has been encouraging with the general consensus being that we have an exciting project in a historically producing area that, on approval from the community, will bring significant value to all stakeholders.
For the six months ended 30 September 2012, Ortac reports a loss on ordinary activities of £785,000 (2011: £595,000).
The retained loss for the financial period was £785,000 (2011: £1,118,000) and the loss per share was £0.003 (2011: £0.005).
Outlook
2013 is set to be another highly active year for Ortac, as we co-design the investments around the Šturec Deposit and move the associated projects up the development curve in conjunction with the local community.
The work we have completed to date has confirmed that the Šturec Deposit is a highly attractive and technically sound asset, and the Ortac team is committed to adopting the optimum route for development to reap the rewards of this valuable resource for all stakeholders.
The completion of the PFS on the Šturec Deposit and the commencement of the respective components to the Šturec Project, both of which are due in the coming months, will prove to give invaluable feedback in identifying the best framework for onward development, and I look forward to using this information to help set out our future work programmes and updating you regularly during the coming year.
On a corporate level, Ortac continues to maintain a strong cash treasury, which is of vital importance in these uncertain market conditions.
A healthy balance sheet enables Ortac to continue implementing its development objectives, and provides flexibility when considering transactions to build our portfolio of assets.
The Board continues to assess other complementary projects to enhance shareholder value however we are yet to find an asset which fits the stringent Ortac investment criteria.
This evaluation process is on-going and we remain proactive in appraising different assets which would build and strengthen our portfolio.
Anthony Balme
Chairman
17 December 2012
For further information please visit www.ortacresources.com or contact:
Vassilios Carellas
Ortac Resources Ltd
Tel: +44 (0) 20 7389 9050
Charles Wood
Ortac Resources Ltd
Tel: +44 (0) 20 7389 9050
Stewart Dickson
Seymour Pierce Limited
Tel: +44 (0) 20 7107 8000
Catherine Leftley
Seymour Pierce Limited
Tel: +44 (0) 20 7107 8000
Jacqui Briscoe
Seymour Pierce Limited
Tel: +44 (0) 20 7107 8000
Caspar Shand-Kydd
RFC Ambrian Limited
Tel: +44 (0) 20 3440 6800
Klara Kaczmarek
RFC Ambrian Limited
Tel: +44 (0) 20 3440 6800
Jen Boorer
RFC Ambrian Limited
Tel: +44 (0) 20 3440 6800
Lottie Brocklehurst
St Brides Media & Finance Ltd
Tel: +44 (0) 20 7236 1177
CONSOLIDATED FINANCIAL STATEMENTS
Group Income Statement for the Interim Period Ended 30 September 2012
Six Months to
Six Months to
30th September
30th September
Notes
2012
2011
(Unaudited)
(Unaudited)
£ 000’s
£ 000’s
Other Operating Income
10
-
Administrative expenses
(689)
(595)
Group operating loss
(689)
(595)
Interest received
21
73
Impairment Provision
-
(596)
Loss on available for sale investments
(117)
-
Loss on ordinary activities before taxation
(785)
(1,118)
Income tax expense
-
-
Loss for the period
2
(785)
(1,118)
Retained loss for the period attributable to:
Equity holders of the parent company
(785)
(1,118)
Loss per share expressed in pence per share
- Basic and diluted
3
(0.03)
(0.05)
Group Statement of Comprehensive Income for the Interim Period Ended 30 September 2012
Six Months to
Six Months to
30th September
30th September
Notes
2012
2011
(Unaudited)
(Unaudited)
£ 000’s
£ 000’s
Loss for the period
(785)
(1,118)
Currency translation differences
(425)
(103)
(Loss)/Gain on revaluation of available for sale investments
-
(293)
Total comprehensive income
(1,210)
(1,513)
Attributable to:
Equity holders of the parent company
(1,210)
(1,513)
Group Balance Sheet as at 30 September 2012
Six Months to
Year to
30th September
31st March
Notes
2012
2012
(Unaudited)
(Audited)
£ 000’s
£ 000’s
ASSETS
Non-current assets
Intangible assets
6
10,042
10,024
Property, plant and equipment
7
347
321
Total non-current assets
10,389
10,345
Current assets
Inventories
8
7
Trade and other receivables
134
139
Available for sale investments
193
310
Cash
6,700
7,678
Total current assets
7,035
8,134
TOTAL ASSETS
17,424
18,479
LIABILITIES
Current liabilities
Trade and other payables
(293)
(184)
TOTAL LIABILITIES
(293)
(184)
NET ASSETS
17,131
18,295
SHAREHOLDERS’ EQUITY
Called up share capital
4
-
-
Share premium
29,994
29,994
Share based payments reserve
1,857
1,857
Available for sale investment reserve
-
-
Foreign exchange reserve
(483)
(58)
Retained earnings
(14,237)
(13,498)
TOTAL EQUITY
17,131
18,295
Group Statement of Changes in Equity for the Interim Period Ended 30 September 2012
Called up share capital
Share premium reserve
Available for sale investment reserve
Foreign exchange reserve
Share based payment reserve
Retained earnings
Total equity
£ 000s
£ 000s
£ 000s
£ 000s
£ 000s
£ 000s
£ 000s
As at 31 March 2011
-
29,994
284
463
1,888
(11,606)
21,023
Loss for the year
-
-
-
-
-
(1,987)
(1,987)
Loss on market value of available for sale investments
-
-
(284)
-
-
-
(284)
Currency translation differences
-
-
-
(521)
-
-
(521)
Total comprehensive income
-
-
(284)
(521)
-
(1,987)
(2,792)
Currency translation opening balances
-
-
-
-
-
15
15
Share capital issued
-
-
-
-
-
-
-
Cost of share issue
-
-
-
-
-
-
-
Cost of share issue - issue of warrants
-
-
-
-
-
-
-
Reserves transfer on exercise of options
-
-
-
-
-
-
-
Reserves transfer on cancellation of options
-
-
-
-
(80)
80
-
Share based payments
-
-
-
-
49
-
49
As at 31 March 2012
-
29,994
-
(58)
1,857
(13,498)
18,295
Loss for the period
-
-
-
-
-
(785)
(785)
Loss on market value of available for sale investments
-
-
-
-
-
-
-
Currency translation differences
-
-
-
(425)
-
46
(379)
Total comprehensive income
-
-
-
(425)
-
(739)
(1,164)
As at 30th September 2012
-
29,994
-
(483)
1,857
(14,237)
17,131
Group Cash Flow Statement for the Interim Period Ended 30 September 2012
Six Months to
Six Months to
30th September
30th September
2012
2011
(Unaudited)
(Unaudited)
£ 000’s
£ 000’s
Cash flows from operating activities
Operating loss
(689)
(595)
(Increase) in inventories
(1)
(3)
(Increase)/ decrease in trade and other receivables
5
(119)
Increase in trade and other payables
109
6
Share based payments
-
-
Depreciation & amortisation
17
10
Net cash outflow from operating activities
(559)
(701)
Cash flows from investing activities
Interest received
21
73
Payments to acquire intangible assets
(440)
(911)
Payments to acquire tangible assets
(54)
(97)
Net cash outflow from investing activities
(473)
(935)
Acquisitions and disposals
Cash on business combinations
-
-
Payment to third party on acquisition of subsidiaries
-
-
Net cash outflow from acquisitions and disposals
-
-
Cash flows from financing activities
Issue of ordinary share capital
-
-
Share issue costs
-
-
Net cash inflow from financing activities
-
-
Net increase/(decrease) in cash and cash equivalents
(1,032)
(1,636)
Foreign exchange differences on translation
54
(5)
Cash and cash equivalents at beginning of period
7,678
10,586
Cash and cash equivalents at end of period
6,700
8,945
NOTES TO THE INTERIM REPORT FOR SIX MONTHS ENDED 30 SEPTEMBER 2012
1.
Basis of preparation
The financial information has been prepared under the historical cost convention and on a going concern basis and in accordance with International Financial Reporting Standards and IFRIC interpretations adopted for use in the European Union (“IFRS”) and those parts of the BVI Business Companies Act applicable to companies reporting under IFRS.
The financial information for the period ended 30 September 2012 has not been audited or reviewed in accordance with the International Standard on Review Engagements 2410 issued by the Auditing Practices Board.
The figures were prepared using applicable accounting policies and practices consistent with those adopted in the statutory accounts for the period ended 31 March 2012.
The financial information contained in this document does not constitute statutory accounts.
In the opinion of the directors, the financial information for this period fairly presents the financial position, result of operations and cash flows for this period.
The Board of Directors approved this Interim Financial Report on 17 December 2012.
Statement of compliance
The condensed consolidated interim financial statements have been prepared in accordance with the requirements of the AIM Rules for Companies.
As permitted, the Company has chosen not to adopt IAS 34 “Interim Financial Statements” in preparing this interim financial information.
The condensed interim financial statements should be read in conjunction with the annual financial statements for the year ended 31 March 2012, which have been prepared in accordance with IFRS as adopted by the European Union.
Basis of consolidation
The consolidated financial statements comprise the financial statements of Ortac Resources Limited and its controlled entities.
The financial statements of controlled entities are included in the consolidated financial statements from the date control commences until the date control ceases.
The financial statements of subsidiaries are prepared for the same reporting period as the parent company, using consistent accounting policies.
All inter-company balances and transactions have been eliminated in full.
Foreign currencies
At present the Group’s functional and presentational currency is pounds sterling (£), though in future the Group’s functional currency may change once its investments become operational.
Each entity in the Group determines its own functional currency and items included in the financial statements of each entity are measured using that functional currency and as at the reporting date the assets and liabilities of these subsidiaries are translated into the presentation currency of Ortac Resources Limited, which are pounds sterling.
Accounting Policies
The same accounting policies, presentation and methods of computation have been followed in these condensed interim financial statements as were applied in the preparation of the Group’s financial statements for the year ended 31 March 2011, except for the impact of the adoption of the Standards and interpretations described below:
(a) New and amended standards, and interpretations mandatory for the first time for the financial year beginning 1 April 2012 but not currently relevant to the Group.
The following standards and amendments to existing standards have been published and are mandatory for the Group’s accounting periods beginning on or after 1 April 2012 or earlier periods, but are not currently relevant to the Group, or are not currently effective.
· An amendment to IFRS 1 “First-time Adoption of International Financial Reporting Standards” relieves first-time adopters of IFRS’s from providing the additional disclosures introduced in March 2009 by “Improving Disclosures about Financial Instruments” (Amendments to IFRS 7).
This amendment was effective for periods beginning on or after 1 July 2010.
· IFRIC 19 “Extinguishing Financial Liabilities with Equity Instruments” clarifies the treatment required when an entity renegotiates the terms of a financial liability with its creditor, and the creditor agrees to accept the entity’s shares or other equity instruments to settle the financial liability fully or partially.
This interpretation was effective for periods beginning on or after 1 July 2010.
· A revised version of IAS 24 “Related Party Disclosures” simplifies the disclosure requirements for government-related entities and clarified the definition of a related party.
This revision was effective for periods beginning on or after 1 January 2011.
· An amendment to IFRIC 14 “IAS 19 - The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction”, on prepayments of a minimum funding requirement, applies in the limited circumstances when an entity is subject to minimum funding requirements and makes an early payment of contributions to cover those requirements.
The amendment permitted such an entity to treat the benefit of such an early payment as an asset.
This amendment was effective for periods beginning on or after 1 January 2011.
· Amendments to IFRS 7 “Financial Instruments: Disclosures” are designed to help users of financial statements evaluate the risk exposures relating to transfers of financial assets and the effect of those risks on an entity’s financial position.
These amendments were effective for periods beginning on or after 1 January 2011 but are still subject to EU endorsement.
(b) New standards, amendments and interpretations issued but not effective for the financial year beginning 1 April 2012.
The Group has also not early adopted certain new standards/amendments that were not effective at the commencement of the present reporting period.
The Directors’ interpretation thereof and their effective dates are summarised below:
· Amendments to IAS 1 “Presentation of Financial Statements” require items that may be reclassified to the profit or loss section of the Income Statement to be grouped together within other comprehensive income (OCI).
The amendments also reaffirm existing requirements that items in OCI and profit or loss should be presented as either a single statement or two consecutive statements.
These amendments are effective for periods beginning on or after 1 July 2012.
· Amendments to IAS 19 “Employment Benefits” eliminate the option to defer the recognition of gains and losses, known as the “corridor method”; streamline the presentation of changes in assets and liabilities arising from defined benefit plans, including requiring remeasurements to be presented in other comprehensive income; and enhance the disclosure requirements for defined benefit plans, providing better information about the characteristics of defined benefit plans and the risks that entities are exposed to through participation in those plans.
These amendments are effective for periods beginning on or after 1 January 2013.
· IAS 27 “Separate Financial Statements” replaces the current version of IAS 27 “Consolidated and Separate Financial Statements” as a result of the issue of IFRS 10 (see below).
This revised standard is effective for periods beginning on or after 1 January 2013, subject to EU endorsement.
· IAS 28 “Investments in Associates and Joint Ventures” replaces the current version of IAS 28 “Investments in Associates” as a result of the issue of IFRS 11 (see above).
This revised standard is effective for periods beginning on or after 1 January 2013, subject to EU endorsement.
· Amendments to IAS 32 “Financial Instruments: Presentation” add application guidance to address inconsistencies identified in applying some of the criteria when offsetting financial assets and financial liabilities.
This includes clarifying the meaning of “currently has a legally enforceable right of set-off” and that some gross settlement systems may be considered equivalent to net settlement.
These amendments are effective for periods beginning on or after 1 January 2014, subject to EU endorsement.
· Amendments to IFRS 1 “First-time Adoption of International Financial Reporting Standards” replace references to a fixed date of 1 January 2004 with “the date of transition to IFRSs”, thus eliminating the need for companies adopting IFRSs for the first time to restate derecognition transactions that occurred before the date of transition to IFRSs, and provide guidance on how an entity should resume presenting financial statements in accordance with IFRSs after a period when the entity was unable to comply with IFRSs because its functional currency was subject to severe hyperinflation.
These amendments are effective for periods beginning on or after 1 July 2011, subject to EU endorsement.
· Amendments to IFRS 7 “Financial Instruments: Disclosures” require disclosure of information that will enable users of financial statements to evaluate the effect or potential effect of netting arrangements, including rights of set-off associated with the entity’s recognised financial assets and recognised financial liabilities, on the entity’s financial position.
These amendments are effective for periods beginning on or after 1 January 2013, subject to EU endorsement.
· IFRS 9 “Financial Instruments” specifies how an entity should classify and measure financial assets, including some hybrid contracts, with the aim of improving and simplifying the approach to classification and measurement compared with IAS 39.
This standard is effective for periods beginning on or after 1 January 2015, subject to EU endorsement.
· Amendments to IFRS 9 “Financial Instruments” and IFRS 7 “Financial Instruments: Disclosures” require entities to apply IFRS 9 for annual periods beginning on or after 1 January 2015 instead of on or after 1 January 2013.
Early application continues to be permitted.
The amendments also require additional disclosures on transition from IAS 39 “Financial Instruments: Recognition and Measurement” to IFRS 9.
This is subject to EU endorsement.
· Amendments to IFRS 10 “Consolidated Financial Statements”, IFRS 11 “Joint Arrangements” and IFRS 12 “Disclosure of Interests in Other Entities” clarify the IASB’s intention when first issuing the transition guidance in IFRS 10, provide similar relief in IFRS 11 and IFRS 12 from the presentation or adjustment of comparative information for periods prior to the immediately preceding period, and provide additional transition relief by eliminating the requirement to present comparatives for the disclosures relating to unconsolidated structured entities for any period before the first annual period for which IFRS 12 is applied.
These amendments are effective for periods beginning on or after 1 January 2013, subject to EU endorsement.
· IFRS 10 “Consolidated Financial Statements” builds on existing principles by identifying the concept of control as the determining factor as to whether an entity should be included within the consolidated financial statements of the parent company.
The standard provides additional guidance to assist in the determination of control where this is difficult to assess.
This standard is effective for periods beginning on or after 1 January 2013, subject to EU endorsement.
· IFRS 11 “Joint Arrangements” provides for a more realistic reflection of joint arrangements by focusing on the rights and obligations of the arrangement, rather than its legal form (as is currently the case).
The standard addresses inconsistencies in the reporting of joint arrangements by requiring a single method to account for interests in jointly controlled entities.
This standard is effective for periods beginning on or after 1 January 2013, subject to EU endorsement.
· IFRS 12 “Disclosure of Interests in Other Entities” is a new and comprehensive standard on disclosure requirements for all forms of interests in other entities, including joint arrangements, associates, special purpose vehicles and other off balance sheet vehicles.
This standard is effective for periods beginning on or after 1 January 2013, subject to EU endorsement.
· IFRS 13 “Fair Value Measurement” improves consistency and reduces complexity by providing, for the first time, a precise definition of fair value and a single source of fair value measurement and disclosure requirements for use across IFRS’s.
It does not extend the use of fair value accounting, but provides guidance on how it should be applied where its use is already required or permitted by other standards.
This standard is effective for periods beginning on or after 1 January 2013, subject to EU endorsement.
· IFRIC 20 “Stripping Costs in the Production Phase of a Surface Mine” clarifies when production stripping should lead to the recognition of an asset and how that asset should be measured, both initially and in subsequent periods.
This applies to annual periods beginning on or after 1 January 2013, subject to EU endorsement.
· “Annual Improvements 2009 – 2011 Cycle” sets out amendments to various IFRSs and provides a vehicle for making non-urgent but necessary amendments to IFRSs:
_ An amendment to IFRS 1 “First-time Adoption of International Financial Reporting Standards” clarifies whether an entity may apply IFRS 1:
(a) if the entity meets the criteria for applying IFRS 1 and has applied IFRS 1 in a previous reporting period; or
(b) if the entity meets the criteria for applying IFRS 1 and has applied IFRSs in a previous reporting period when IFRS 1 did not exist.
The amendment also addresses the transitional provisions for borrowing costs relating to qualifying assets for which the commencement date for capitalisation was before the date of transition to IFRSs.
_ An amendment to IAS 1 “Presentation of Financial Statements” clarifies the requirements for providing comparative information:
(a) for the opening statement of financial position when an entity changes accounting policies, or makes retrospective restatements or reclassifications; and
(b) when an entity provides financial statements beyond the minimum comparative information requirements.
_ An amendment to IAS 16 “Property, Plant and Equipment” addresses a perceived inconsistency in the classification requirements for servicing equipment.
_ An amendment to IAS 32 “Financial Instruments: Presentation” addresses perceived inconsistencies between IAS 12 “Income Taxes” and IAS 32 with regard to recognising the consequences of income tax relating to distributions to holders of an equity instrument and to transaction costs of an equity transaction.
_ An amendment to IAS 34 “Interim Financial Reporting” clarifies the requirements on segment information for total assets and liabilities for each reportable segment.
· These amendments are effective for periods beginning on or after 1 January 2013, subject to EU endorsement.
The Directors anticipate that the adoption of these Standards and Interpretations in future periods will have no material impact on the financial statements of the Group, except for additional disclosures when the relevant Standards come into effect.
2.
Segmental analysis
Segment information is presented in respect of the Group’s management and internal reporting structure.
As currently the Group is not producing, no revenue is being generated other than interest, and the main business segment is that of a corporate administrative entity.
Segment information includes items directly attributable to a segment, as well as those that can be allocated on a reasonable basis.
Six Months to 30 September 2012
UK/BVI
Slovakia
Brazil
Total
£ 000s
£ 000s
£ 000s
£ 000s
Result
Operating loss
(642)
(47)
-
(689)
Impairment Provision
-
-
-
-
Loss on available for sale investment
(117)
-
-
(117)
Investment revenue
21
-
-
21
Loss before & after taxation
(738)
(47)
-
(785)
Other information
Depreciation and impairment
(12)
(5)
-
(17)
Capital additions
6
488
-
494
Assets
Fixed Assets
67
10,322
-
10,389
Non cash current assets
258
77
-
335
Cash and short term investments
6,551
149
-
6,700
Consolidated total assets
6,876
10,548
-
17,424
Liabilities
Long term liabilities
-
-
-
-
Current liabilities
(175)
(118)
-
(293)
Consolidated total liabilities
(175)
(118)
-
(293)
By geographical area
Six Months to 30 September 2011
UK/BVI
Slovakia
Brazil
Total
£ 000s
£ 000s
£ 000s
£ 000s
Result
Operating loss
(506)
(89)
-
(595)
Impairment provision
-
-
(596)
(596)
Investment revenue
73
0
-
73
Loss before & after taxation
(433)
(89)
(596)
(1,118)
Other information
Depreciation and impairment
(4)
(6)
-
(10)
Capital additions
64
903
31
997
Assets
Fixed Assets
345
9,917
-
10,263
Non cash current assets
497
77
-
574
Cash and short term investments
8,729
216
-
8,945
Consolidated total assets
9,571
10,210
-
19,782
Liabilities
Long term liabilities
-
-
-
-
Current liabilities
(209)
(64)
-
(272)
Consolidated total liabilities
(209)
(64)
-
(272)
By geographical area
Year to 31 March 2012
UK/BVI
Slovakia
Brazil
Total
£ 000s
£ 000s
£ 000s
£ 000s
Result
Operating loss
(991)
(416)
(30)
(1,437)
Impairment provision
-
-
(596)
(596)
Investment revenue
128
-
-
128
loss on available for sale investments
(82)
-
-
(82)
Loss before & after taxation
(945)
(416)
(626)
(1,987)
-
Other information
Depreciation and impairment
(15)
(15)
-
(30)
Capital additions
73
1,392
-
1,465
Assets
Fixed Assets
73
10,272
-
10,345
Non cash current assets
349
107
-
456
Cash and short term investments
7,602
76
-
7,678
Consolidated total assets
8,024
10,455
-
18,479
Liabilities
Long term liabilities
-
-
-
-
Current liabilities
(144)
(40)
-
(184)
Consolidated total liabilities
(144)
(40)
-
(184)
3.
Loss per share
The calculation of earnings per share is based on the loss after taxation divided by the weighted average number of share in issue during the period:
Six Months to
Six Months to
Year to
30th September
30th September
31st March
2012
2011
2012
(Unaudited)
(Unaudited)
(Audited)
£ 000’s
£ 000’s
£ 000’s
Net loss after taxation
(785)
(1,118)
(1,987)
Weighted average number of ordinary shares used in calculating basic loss per share (millions)
2,315.7
2,315.7
2,315.7
Basic & diluted loss per share (expressed in pence)
(0.03)
(0.05)
(0.09)
As the inclusion of the potential ordinary shares would result in a decrease in the loss per share, they are considered to be anti-dilutive, and as such, a diluted loss per share is not included.
5.
Share capital
The authorised share capital of the Company and the called up and fully paid amounts at 30 September 2011 were as follows:
A) Authorised
£ 000s
Unlimited Ordinary shares of no par value
-
B) Called up, allotted, issued and fully paid
Number of shares
Nominal value
As at 1 April 2012
2,315,679,020
-
As at 30 September 2012
2,315,679,020
-
Total share options in issue
During the period ended 30 September 2012, no options were granted and none lapsed or were cancelled.
As at 30 September 2012 unexercised options in issue were:
Exercise Price
Vesting Date
Expiry Date
Options in Issue
Options in Issue
30 September 2012
31 March 2012
5p
04-May-07
04-May-12
10,000,000
10,000,000
1p (2010: 1.7p)
22-Apr-09
22-Apr-19
6,800,000
6,800,000
1p (2010: 2.35p)
08-Jun-09
08-Jun-19
5,600,000
5,600,000
1p (2010: 1.7p)
22-Apr-10
22-Apr-19
16,800,000
16,800,000
1p (2010: 2.35p)
08-Jun-10
08-Jun-19
5,600,000
5,600,000
1p
15-Sep-10
31-Dec-20
95,000,000
95,000,000
1p
08-Oct-10
31-Dec-20
5,000,000
5,000,000
1p
19-Oct-10
31-Dec-20
10,000,000
10,000,000
1p
13-Dec-10
31-Dec-20
5,000,000
5,000,000
1.1p
30-Jun-12
30-Jun-17
30,000,000
30,000,000
1.4p
31-Dec-12
30-Jun-17
15,000,000
15,000,000
1.8p
31-Dec-13
30-Jun-17
15,000,000
15,000,000
219,800,000
219,800,000
Total share warrants in issue
During the period ended 30 September 2012, no warrants were granted and none lapsed or were cancelled.
As at 30 September 2012 unexercised warrants in issue were:
Exercise Price
Vesting Date
Expiry Date
Warrants in Issue
Warrants in Issue
30 September 2012
31 March 2012
1p
15-Sep-10
31-Dec-15
16,500,000
16,500,000
6.
Investment in group companies
At 30 September 2012, the Group holds 20% of the share capital of the following wholly owned subsidiary companies:
Company
Country of Registration
Proportion held
Nature of business
Paranaíba Minerals Ltd**
BVI
100%
Holding Company
Ortac Resources plc
England and Wales
100%
Holding Company
Bellmin s.r.o.*
Slovak Republic
100%
Mineral Exploration
G.B.E.
s.r.o.*
Slovak Republic
100%
Mineral Exploration
St.
Stephans Gold s.r.o.*
Slovak Republic
100%
Mineral Exploration
Kremnica Gold s.r.o.*
Slovak Republic
100%
Mineral Exploration
Kremnica Gold Mining s.r.o.*
Slovak Republic
100%
Mineral Exploration
* Wholly owned subsidiary of Ortac Resources plc, acquired as part of the acquisition of Ortac Resources plc group, which transaction was completed on 15th September 2010
** In the process of being dissolved with a full provision made against the cost of the investment.
*** Now the subject of a full impairment provision
7.
Intangible assets
Six Months to
Six Months to
Year to
30th September
30th September
31st March
2012
2011
2012
(Unaudited)
(Unaudited)
(Audited)
£ 000’s
£ 000’s
£ 000’s
Cost
Balance brought forward
10,590
9,851
9,700
Currency Translation Adjustments
(533)
(121)
(469)
Development expenditure
440
911
1,359
Balance carried forward
10,497
10,641
10,590
Depreciation
Balance brought forward
(566)
(151)
-
Currency Translation Adjustments
111
26
-
Amortisation/Impairment
-
(596)
(566)
Balance carried forward
(455)
(721)
(566)
Net book value
10,042
9,920
10,024
The net book value is analysed as follows:
Deferred exploration expenditure
-Slovakia
9,772
9,650
9,754
Goodwill Slovakia
270
270
270
10,042
9,920
10,024
8.
Tangible assets
Six Months to
Six Months to
Year to
30th September
30th September
31st March
2012
2011
2012
(Unaudited)
(Unaudited)
(Audited)
£ 000’s
£ 000’s
£ 000’s
Cost
Balance brought forward
352
271
271
Currency translation adjustments
(22)
(5)
(25)
Additions
54
97
106
Balance carried forward
384
363
352
Depreciation
Balance brought forward
(31)
(13)
(13)
Currency Translation Adjustments
11
2
12
Depreciation charge
(17)
(10)
(30)
Balance carried forward
(37)
(21)
(31)
Net book value
347
342
321
9.
Contingent liability
As part of its acquisition of Kremnica Gold s.r.o.
and Kremnica Gold Mining s.r.o.
Ortac Resources plc agreed to pay vendor royalties of up to US$3,750,000 in either shares or cash- being $15 per ounce on the first 250,000 ounces of gold equivalent (gold plus silver) resource defined as proven and probable reserve in the bankable feasible study.
This will become payable within 60 days of all required permits being obtained to allow commercial production at the Kremnica property.
One the basis of recent studies, the Directors are confident that proven and probable reserves in the bankable feasible study will significantly exceed 250,000 ounces of gold equivalent (gold plus silver) resource.
Notwithstanding this, until such time as it is clear that all the required permits to achieve commercial production will be secured, no provision for such amounts can be determined.
10.
Post balance sheet events
There are no post balance sheet events to disclose
11.
Other Matters
The financial information set out above does not constitute the Group’s statutory accounts for the period ended 30 September 2012 or for earlier periods, but is derived from those accounts where applicable.
A copy of this interim statement is available on the Company’s website: www.ortacresources.com.
[cid:image001.png@01CDDCB5.81335A30]