PENINSULAR GOLD LIMITED Regulatory Story
Go to market news section
Peninsular Gold Limited PGL Half Yearly Report
Released 11:30 12Jun2015
RNS Number : 0250Q Peninsular Gold Limited
12 June 2015
12 June 2015
Peninsular Gold Limited, the gold production and exploration group focused on Malaysia, today releases its Interim Results for the six months ended 31st December 2014.
Financial and Operations
Loss after tax for the Group of £4,278,067 (2013: Loss £2,837,459)
Loss per share 4.97p (2013: Loss 3.30p)
Proposed change in conditions to environmental requirements in relation to tailings dams location caused operations at Raub to be suspended, as was announced 2 December 2014
Peninsular Gold Limited requested suspension from AIM on 2 December 2014 pending clarification of its financial position following the halting of operations at Raub
Alkhair Bank agrees to deferment of principal payments until March 2015
Convertible loan note holders agree to 6 month extension of maturity to June 2015
£1.8m raised for working capital via convertible loan notes in January 2015
Bank Rakyat agrees to payments deferral until June 2015 and a further partial deferral until November 2015
Company seeking a further deferral from convertible loan note holders to December 2015
Tailings dam location issue resolved, with no new requirements, as announced 1 June 2015
Intention to secure additional funds during June 2015
Alkhair agrees to principal payment deferral until June 2015
Company seeking further deferral from Alkhair Bank
Gold production at Raub intended to resume during July 2015, subject to securing additional funds
Notes(Unaudited) (Unaudited) (Audited)
£ £ £ NonCurrent AssetsProperty, plant and equipment 2 42,916,654 44,373,674 43,540,775
Other intangible assets 3 13,576,695 13,983,544 13,652,948
Mining development expenditure 4 7,288,654 7,160,159 7,262,637
Inventories 5 4,301,645 3,494,886 3,728,210
Other receivables 6 610,197 1,052,949 948,904
Shortterm investments
133,381 159,855
Cash and cash equivalents | 7 | 118,609 | 203,849 | 247,038 |
5,030,451 | 4,885,065 | 5,084,007 | ||
Current Liabilities | ||||
Trade and other payables | 8 | (16,174,212) | (11,660,860) | (12,968,340) |
Borrowings Current tax liability | 9 | (19,671,500) (129,656) | (3,773,251) (204,158) | (19,684,733) (128,997) |
Total Current Liabilities | (35,975,368) | (15,638,269) | (32,782,070) | |
Net Current Liabilities | (30,944,917) | (10,753,204) | (27,698,063) | |
Total Assets Less Current Liabilities | 32,837,086 | 54,764,173 | 36,758,297 | |
NonCurrent Liabilities | ||||
Trade and other payables | 8,13 | (570,000) | (510,000) | (540,000) |
Borrowings | 9 | (1,000,513) | (17,223,036) | (815,216) |
Provision for mine restoration | 10 | (769,629) | (750,396) | (753,769) |
Total NonCurrent Liabilities | (2,340,142) | (18,483,432) | (2,108,985) | |
Net Assets | 30,496,944 | 36,280,741 | 34,649,312 | |
Shareholders' Equity | ||||
Share capital | 11 | | | |
Stated capital account | 11 | 40,897,957 | 40,897,957 | 40,897,957 |
Reserves | (10,401,013) | (4,617,216) | (6,248,645) | |
Total Equity | 30,496,944 | 36,280,741 | 34,649,312 |
Notes(Unaudited) (Unaudited) (Audited)
£ £ £ Revenue 204,573 8,671,910 16,450,074Less: Cost of sales (1,738,809) (6,704,849) (12,760,462)
Administrative expenses (1,014,838) (1,462,825) (2,715,947) Other operating expenses (515,081) (636,883) (1,239,810) Financial income 3,663 331 3,528
Finance costs 13,14 (1,031,316) (1,226,468) (2,328,685) Loss on extinguishment of
convertible loan notes 9 (155,861) Foreign exchange loss (59,094) (1,462,032) (1,702,239) Other income 28,696 2,937 3,897
Loss before taxation 14 (4,278,067) (2,817,879) (4,289,644) Income tax expense 15 (19,580) (16,699)
Other Comprehensive
Income/(Expense):
Exchange difference arising on translation of foreign
operations
125,699 (1,377,786) (1,540,331)
Other Comprehensive
Income/(Expense) for the Period,
net of tax 125,699 (1,377,786) (1,540,331)
Equity shareholders of the parent (4,278,067) (2,837,459) (4,306,343) Basic and diluted loss per share 16 (4.97p) (3.30p) (5.01p)
Condensed Consolidated Statement of Changes in Equity (Unaudited) For the Period From 1st July 2014to 31st December 2014 (Expressed in United Kingdom Sterling)Share | Stated capital | Accumulated | Capital | Other | Translation | Total |
capital | account | losses | reserve | Reserve | reserve | |
£ | £ | £ | £ | £ | £ | £ |
At 1st July 2013
40,897,957 (3,646,515) 456,303 2,734,187 40,441,932
Loss for the period (2,837,459) (2,837,459)
Other Comprehensive
Expense:
Exchange difference arising on translation of foreign
operations (1,377,786) (1,377,786)
Equity element of
Convertible loan notes
54,054 54,054
At 31st December 2013 40,897,957 (6,483,974) 456,303 54,054 1,356,401 36,280,741
Loss for the period (1,468,884) (1,468,884)
Other Comprehensive
Expense:
Exchange difference arising on translation of foreign
operations (162,545) (162,545)
At 1st July 2014 40,897,957 (7,952,858) 456,303 54,054 1,193,856 34,649,312
Loss for the period (4,278,067) (4,278,067)
Other Comprehensive
Expense:
Exchange difference arising on translation of foreign
operations 125,699 125,699
At 31st December 2014 40,897,957 (12,230,925) 456,303 54,054 1,319,555 30,496,944
*Other reserve relates to the equity element of convertible loan notes issued by the Company (note 9).
Condensed Consolidated Statement of Cash Flows (Unaudited) For the Period From 1st July 2014 to 31st December 2014 (Expressed in United Kingdom Sterling) Six months ended 31st December 2014 Six months ended 31st December 2013 Year ended 30th June 2014 Operating Activities (Unaudited) (Unaudited) (Audited) £ £ £Loss before tax (4,278,067) (2,817,879) (4,289,644) Depreciation of property, plant and equipment 724,593 978,906 1,720,822
Finance costs 968,704 1,157,325 2,217,646
Loss on extinguishment of convertible loan notes 155,861 Interest income (3,663) (331) (3,528) (Profit)/loss on disposal of fixed assets (21,172) 8,053
Loss on foreign exchange 59,093 1,462,032 1,665,524
Amortisation of mining development expenditure 31,754 182,981 340,882
Unwinding of discount on restoration provision 12,252 12,396 23,160
Amortisation of other intangible assets 76,253 427,726 758,322
Amortisation of issue costs of convertible loan
notes 7,353 378 7,353
Amortisation of transaction costs for bank loan 25,259 26,369 51,039
Preference dividend 30,000 30,000 60,000
(Increase)/decrease in inventories (573,436) 840,266 606,942
Decrease in trade and other receivables 338,707 117,033 221,078
Increase/(decrease) in trade and other payables 3,220,558 (1,461,326) 2,205,243
Interest received 3,663 331 3,528
Purchase of property, plant and equipment (457,033) (1,586,614) (1,976,103) Proceeds from disposal of fixed assets 662,090 Mining development expenditure (20,022) (200,536) (537,159) Placement of fixed deposit (1,981) Withdrawal of fixed deposit 159,855 24,493
Cash inflow/(outflow) from investing activities 348,553 (1,762,326) (2,511,715) Six months ended 31st December 2014 Six months ended 31st December 2013 Year ended 30th June 2014 (Unaudited) (Unaudited) (Audited) £ £ £ Financing ActivitiesRepayment of bank loans (1,323,448) (2,313,675) Repayment of hire purchase obligations (79,947) (33,040) (55,631) Proceeds from issue of convertible loan notes,
net of transaction costs (Note 9) 1,185,294 1,185,294
Finance costs paid (937,087) (1,193,848) (1,689,181)
(17,338) (2,191,072)
22,948
Cash and Cash Equivalents at beginning of Period
247,038 264,659 264,659
Impact of cash held in foreign currencies (111,091) 2,130,262 (40,569)
These financial statements for the period from 1st July 2014 to 31st December 2014 have been prepared in accordance with International
Accounting Standard 34 which applies to interim financial statements.
The same accounting policies and methods of computation are followed in these interim financial statements as were used in the preparation of the financial statements for the year ended 30th June 2014. A copy of those accounts is available on www.peninsulargold.com. The information provided as comparatives herein for the year ended 30th June 2014 does not constitute the full statutory accounts as per Jersey law by itself. This information was derived from the statutory accounts for the year ended 30th June 2014, a copy of which has been delivered to the Registrar of Companies. The auditors' report on the said accounts was not qualified although it contains an emphasis of matter with regard to going concern.
Going concern
The financial statements have been prepared on the going concern basis. At 31st December 2014 the Group had net current liabilities of £ 30.9 million (2013: £ 10.8 million). Of this total, £ 18.2 million (2013: £2.6 million) represents the current portion of bank loans repayable within one year.
The bank loans are presented as current liabilities, as at 31st December 2014 the Group was still awaiting the written confirmation from its principal lender, Bank Rakyat Kerjasama Malaysia Bhd ("Bank Rakyat"), of its verbally given agreement to defer the commencement of scheduled payments due to the Bank until June 2015. Confirmation of the agreement to defer the commencement of payments was given after the period end. Also at 31st December 2014, The Group did not meet the required Finance Service Cover Ratio on the Alkhair bank loan, although Alkhair bank had agreed, before 31 December 2014, to the deferral of repayments until March 2015 and subsequently until June 2015. The presentation of the bank obligations in these interim results as current liabilities represents the accounting treatment necessary to comply with IAS 1"Presentation of Financial Statements".
On 2nd December 2014, the Group issued an announcement to AIM that the production facility at Raub was being placed into a temporary care and maintenance period, and the shares of the Company were requested to be suspended from trading on the AIM market, while the Group reviewed its financing and working capital requirements.
The decision to suspend operations at the Raub facility came following discussions with the Malaysian environmental authorities regarding additional operational requirements which the authorities had sought to attach to the environmental consent which governs operations at the Raub project. In particular the authorities had requested changes relating to the location of RAGM's tailings storage facilities which would require significant changes to its tailings management plan. Given the onset of the monsoon season at the time, when tailings management is particularly important, RAGM took the prudent decision to halt gold production at Raub pending resolution of this matter which has recently been resolved, as announced to the market on 1 June 2015.
On 12 December 2014 the Group announced that it has arranged an extension of its convertible loan notes of £1.2 million, which were due to mature on 22nd December 2014. The loan notes were extended until 23rd June 2015 and management expect a further deferral to be agreed shortly.
The Group also negotiated an extension of capital repayments on its borrowing facilities with Bank
Rakyat and with Alkhair International Islamic Bank Bhd ("Alkhair"), which were due to commence in December 2014. An initial extension on both facilities was made to March 2015, with Alkhair agreeing prior to 31st December 2014 and Bank Rakyat agreeing after 31st December
2014, with a further extension since agreed to June 2015. Bank Rakyat has now agreed an additional, partial deferral to November 2015. Management expect a similar extension to be granted by Alkhair.
As announced to AIM on 23rd January 2015, the Group raised £1.8 million through the issue of convertible loan notes, to meet the Group's immediate working capital requirements and to assist with work to restart the production facility at Raub.
In June 2015, the Group is seeking additional funding of up to £4 million and is currently in discussions with several potential investors.
Management consider that the cost of restarting production at Raub will be approximately
£520,000. Works to restart the plant at Raub will take place in late June and early July 2015. Following the recommencement of production, operations at Raub are expected to be cash positive. The funding to be raised in June 2015 is expected to be sufficient to meet the restart costs
at Raub, and the working capital requirements of the company, including commencement of capital repayments on the bank finance facilities with Bank Rakyat and with Alkhair.
The directors consider that the above matters, and primarily the requirement to raise additional funding, represent a material uncertainty regarding the going concern position of the group. The interim report does not contain any adjustments to the value of assets and liabilities that would arise if the group is not able to raise the necessary funding.
At 1st July 2014
Additions 267 340,099 809 115,858 457,033
Disposal (450,876) (207,093) (571,642) (1,229,611) Currency translation
difference 14,873 (5,337) 2,580 1,661 1,013 256,362 467 271,619
At 31st December
2014 2,474,368 410,024 640,516 327,757 199,193 48,502,885 91,918 52,646,661
Accumulated depreciationAt 1st July 2014 2,344,605 392,268 345,498 153,010 101,686 6,205,762 64,016 9,606,845
Charge for the | 9,285 | 3,421 | 61,972 | 16,199 | 10,162 | 618,865 | 4,689 | | 724,593 |
period Disposal | (450,844) | | (185,287) | | | | | | (636,131) |
Currency translation | |||||||||
difference | 11,798 | 1,937 | 534 | 462 | 318 | 19,417 | 234 | | 34,700 |
At 31st December
2014 1,914,844 397,626 222,717 169,671 112,166 6,844,044 68,939 9,730,007
Net Book ValueAt 31st December
2014 559,524 12,398 417,799 158,086 87,027 41,658,841 22,979 42,916,654
At 30th June 2014 565,500 23,093 159,432 172,149 96,494 42,496,672 27,435 43,540,775
At 31st December
2013 559,028 32,008 205,763 197,901 103,912 12,245,381 32,362 30,997,319 44,373,674
Assets under construction refer to the construction works for the upgrade to the CarbonInLeach Plant, which was brought into operation in June 2014 and reclassified into Mining Assets.
Leasehold land refers to a piece of land, owned by S.E.R.E.M. Malaysia Sdn Bhd, to which mining certificate MC511 relates.
3. Other Intangible Assets Mining Reserves and Resources 31st December 2014 31st December 2013 30th June 2014 Cost (Unaudited) (Unaudited) (Audited) £ £ £Opening balance 17,378,478 17,378,478 17,378,478
Amortisation
Opening balance 3,725,530 2,967,208 2,967,208
Charge for the period 76,253 427,726 758,322
Closing balance 3,801,783 3,394,934 3,725,530
Other intangible assets comprise mineral properties including mining licences and rights.
The Group's mining assets were valued by independent experts prior to the acquisition of the subsidiaries on 17th June 2005 and these valuations were considered to be relevant and unimpaired at the financial reporting date. The valuation was based upon the defined reserves, resources and the Group's prospecting interests. Valuation techniques most relevant to the asset type, as considered by the independent valuer, were applied and included discounted cash flows for the defined reserves, comparable transaction method for the inferred resources and the Geoscience Factor method for mineral titles.
No revenue has been generated from SEREM in the financial period ended 31st December 2014 from its mineral reserves. Hence, there is no amortisation of mining reserves and resources for SEREM.
Opening balance 9,288,764 9,858,079 9,858,079
Currency translation difference 47,473 (1,009,762) (1,106,474) Additions 20,022 200,536 537,159
Closing balance 9,356,259 9,048,853 9,288,764
Opening balance 2,026,127 1,911,692 1,911,692
Currency translation difference 9,724 (205,979) (226,447) Amortisation for the period 31,754 182,981 340,882
Closing balance 2,067,605 1,888,694 2,026,127
The directors are of the view that there will be sufficient future revenues from the extraction of gold to offset the mining development expenditure capitalised in the financial statements.
Spare parts and consumables 454,730 657,637 553,383
Ore stockpiles Work in progress Finished goods
2,727,168
1,087,063
32,684
2,349,479
463,118
24,652
2,713,302
429,007
32,518
4,301,645 3,494,886 3,728,210
Other receivables, deposits and prepayments 610,197 1,052,949 948,904
Cash at bank and in hand 118,609 203,849 247,038
Trade payables 9,963,057 8,495,139 10,788,886
Other payables and accruals 6,781,155
3,675,721
2,719,454
16,744,212 12,170,860 13,508,340
Less: noncurrent portion (Note 13) (570,000) (510,000) (540,000)
16,174,212 11,660,860 12,968,340
Bank loans 18,190,534 2,584,756 18,451,783
Convertible loans
Hire purchase obligations
1,375,587
105,379
1,130,988
57,507
1,176,072
56,878
19,671,500 3,773,251 19,684,733
Bank loans 16,377,394 Preference shares debt portion 664,000 664,000 664,000
Hire purchase obligations 336,513
181,642
151,216
1,000,513 17,223,036 815,216
The bank loans are presented as current liabilities, as at 31st December 2014 the Group was still awaiting the written confirmation from its principal lender, Bank Rakyat Kerjasama Malaysia Bhd ("Bank Rakyat"), of its verbally given agreement to defer the commencement of scheduled payments due to the Bank until June 2015. Confirmation of the agreement to defer commencement of payments was given after the period end. Also at 31st December 2014, The Group did not meet the required Finance Service Cover Ratio on the Alkhair bank loan, although Alkhair bank had agreed, before 31 December 2014, to the deferral of repayments until March 2015 and subsequently until June 2015. The presentation of the bank obligations in these interim results as current liabilities represents the accounting treatment necessary to comply with IAS 1"Presentation of Financial Statements".
The Group also negotiated an extension of capital repayments on its borrowing facilities with Bank Rakyat and with Alkhair International Islamic Bank Bhd ("Alkhair"), which were due to commence in December 2014. An initial extension on both facilities was made to March 2015, with a further extension since agreed to June 2015. Bank Rakyat has now agreed an additional, partial deferral to November
2015. Management expect a similar extension to be granted by Alkhair.
All bank loans are secured by way of a debenture over all the assets and undertakings of RAGM, a third party charge over a property owned by a company under common control and corporate guarantees provided by the Parent Company.
Convertible Loan Notes
Upon redemption of the loan notes by the Company, either at maturity or earlier, a noteholder is entitled to receive from the Company an additional payment equal to the number of convertible loan notes to be redeemed by the relevant noteholder divided by 0.12 and multiplied by 3 pence. If all convertible loan notes are redeemed and not converted this would result in an additional payment of
£300,000.
The convertible loan notes were extended in December 2014 for six months until 23rd June 2015. This resulted in a loss of £155,861 on extinguishment of the liability on the previous agreement.
The net proceeds received from the issue of convertible loan notes were split between the liability and the equity portions as follows:
31st December 2014 31st December 2013 30th June 2014 (Unaudited) (Unaudited) (Audited) £ £ £1,200,000 convertible loan notes | 1,200,000 | 1,200,000 | 1,200,000 |
Less: transaction cost | (14,706) | (14,706) | (14,706) |
Transaction costs amortised | 14,706 | | 7,353 |
Amount classified as
1,200,000 1,185,294 1,192,647
equity (54,054) (54,054) (54,054)
Loss on extinguishment of convertible
loan notes 155,861
Accrued
interest 73,780
37,479
Carrying amount 1,375,587 1,130,988 1,176,072
Hire purchase agreements are subject to fixed interest rates ranging from 2.29% to 3.65%.
10. Provision for mine restoration 31st December 2014 31st December 2013 30th June 2014 (Unaudited) (Unaudited) (Audited) £ £ £Opening balance | 753,769 | 822,986 | 822,986 |
Unwinding of discount | 12,252 | 12,396 | 23,160 |
Currency translation difference | 3,608 | (84,986) | (92,377) |
Closing balance | 769,629 | 750,396 | 753,769 |
Provision for restoration of the mine site at Raub is based on management's best estimate of the present value of future costs required. The estimates are based on assumptions such as the extent and cost of required rehabilitation activities. These uncertainties may result in the actual future expenses being different from the amounts currently provided.
Authorised
Unlimited ordinary shares of £Nil par value each
Allotted, called up and fully paid
85,986,550 ordinary shares of £Nil par value each
2,000,000 preference shares of £Nil par value each
At 1st July 2014 and at
2014 £
31st December 2014 40,897,957
Assets and liabilities of foreign consolidated subsidiaries are translated into United Kingdom Sterling at the rate of exchange ruling at the balance sheet date.
Revenue and expenses are translated at the average exchange rates for the period. All resulting translation differences are included in a translation reserve in equity.
The closing rates used in the translation of foreign currency monetary assets and liabilities are as follows:
United Kingdom Sterling | 1.00 | Malaysian Ringgit | 5.4396 |
United Kingdom Sterling | 1.00 | United States Dollars | 1.5564 |
United States Dollars | 1.00 | Malaysian Ringgit | 3.4950 |
Included in the Financing Costs is an amount of £30,000 in respect of 2,000,000 redeemable, convertible 6% preference shares' dividends. In accordance with the share subscription agreement, preference dividends should be accrued from the date of issuance to the conversion date or the redemption date. The accumulated amount of preference dividends has now amounted to £570,000 since the issue of the said
shares at £0.50 per share on 27th May 2005, as indicated in trade and other payables.
Loss before tax for the period are arrived at after charging the following:
31st December 2014 31st December 2013 30th June 2014Cost of sales
(Unaudited) (Unaudited) (Audited) £ £ £
Cost of production
Depreciation of property, plant and equipment
Operating & administrative expenses
Audit fees current
underprovision in prior year Depreciation of property, plant and equipment Amortisation of mining development expenditure
1,110,902
627,905
96,688
31,754
5,840,145
864,704
1,000
114,202
182,981
11,238,171
1,522,291
84,687
198,531
340,882
(Profit)/loss on disposal of fixed assets (21,172) 8,053
Amortisation of other intangible assets 76,253 427,726 758,322
Amortisation of issue costs for convertible loan notes 7,353 378 7,353
Amortisation of transaction costs for bank loan
Rental of premises
25,259
64,654
26,369
67,493
126,094
The Parent Company is subject to Jersey income tax at a rate of 0%.
Malaysian Corporation Tax is provided on taxable profits at the appropriate rate for subsidiary companies located in Malaysia. Income tax for the financial period is derived by using the Malaysian tax rate of 25% (2013: 25%).
Loss before taxation (4,278,067) Income tax using Malaysian tax rate (1,069,517)
Disallowed expenses 1,431,059
Effect of timing difference on mining allowance and
capital allowance (361,542)
The calculation of loss per share is based on the loss for the period after taxation and on the weighted average number of shares in issue during the period as below:
Basic and diluted loss per share 31st December 201 31st December 2013 30th June 2014 (Unaudited) (Unaudited) (Audited) £ £ £
Loss used in calculation (4,278,067) (2,837,459) (4,306,343)
Weighted average number of ordinary shares
85,986,550 85,986,550 85,986,550
Basic and diluted loss per share (4.97p) (3.30p) (5.01p) The redeemable preference shares and convertible loan notes are nondilutive.
Currently all revenues, profits and losses before tax and the carrying value of assets and liabilities arise from the production and sale of gold doré bars and activities related to the upgrade of the carboninleach plant and gold mining and exploration activity within Malaysia.
18. Capital Commitments 31st December 2014 31st December 2013 30th June 2014 (Unaudited) (Unaudited) (Audited) £ £ £
Authorised and contracted for 4,094,930 4,059,617 4,074,109
The above amount relates to the expansion of the carboninleach plant (CIL).
Dato' Sri Andrew TY Kam Chairman and Chief Executive Peninsular Gold Limited Tel: +60 (0)3 2698 8381 | Patrick Watson Finance Director Peninsular Gold Ltd. Tel: +44 (0)7799 885653 |
Samantha Harrison / Stephen Francavilla/Steve Allen Nominated Advisor Ambrian Partners Limited Tel: +44 (0)20 3440 6800 | Martin Lampshire Broker Daniel Stewart & Co. Ltd. Tel: +44 (0)20 7776 6550 |
This information is provided by RNS
The company news service from the London Stock Exchange
END
I
I I I I I I I
t i
tr j r rt f t i t r t r t i t r
li
t i
tr j r rt f t i t r t r t i t r
li
t i
tr j r rt f t i t r t r t i t r
li
London Stock Exchange plc is not responsible for and does not check content on this Website. Website users are responsible for checking content. Any news item (including any prospectus) which is addressed solely to the persons and countries specified therein should not be relied upon other than by such persons and/or outside the specified countries. Terms and conditions, including restrictions on use and distribution apply.©2014 London Stock Exchange plc. All rights reserved
Half Yearly Report ‐ RNS
TIME TO PROGRESS YOUR FINANCE CAREER?
This ad is supporting your extension Chromoji: More info| Privacy Policy | Hide on this page
|
distributed by
|
