BROCKMAN MINING LIMITED Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.
布 萊 克 萬 礦 業 有 限 公 司 *
(incorporated in Bermuda with limited liability)
(SEHK Stock Code: 159) (ASX Stock Code: BCK)The board of directors (the 'Board') of Brockman Mining Limited (the 'Company') announces the consolidated results of the Company and its subsidiaries (the 'Group') for the year ended 30 June 2015, together with the comparative figures for the year ended 30 June 2014.
For the year ended 30 June 2015
Year ended 30 June | ||||
2015 | 2014 | |||
Note | HK$'000 | HK$'000 | ||
Continuing operations | ||||
Revenue | 4 | 36,525 | 38,739 | |
Cost of sales | 11 | (38,497) | (34,170) | |
Gross (loss)/profit | (1,972) | 4,569 | ||
Other income | 7 | 1,954 | 5,388 | |
Other (losses)/gains, net | 8 | (6,878) | 1,984 | |
Selling and administrative expenses | 11 | (73,479) | (88,933) | |
Exploration and evaluation expenses | 11 | (76,560) | (87,188) | |
Impairment losses | 9 | (1,441,618) | (40,000) | |
Share of losses of joint ventures | (5,031) | (8,090) | ||
Operating loss | (1,603,584) | (212,270) | ||
Finance costs | 10 | - | (804) | |
Loss before income tax | (1,603,584) | (213,074) | ||
Income tax credit | 12 | 367,036 | - | |
Loss for the year from continuing operations | (1,236,548) | (213,074) | ||
* For identification purposes only
- 1 -
Year ended 30 June | ||||
2015 | 2014 | |||
Note | HK$'000 | HK$'000 | ||
Discontinued operation | ||||
Profit for the year from discontinued operation | 6 | - | 3,973 | |
Loss for the year | (1,236,548) | (209,101) | ||
Other comprehensive (loss)/income: | ||||
Items that may be reclassified to profit or loss | ||||
Exchange differences arising on translation of foreign operations | (380,776) | 63,880 | ||
Release of translation reserve arising from disposal of subsidiaries | - | (2,717) | ||
Other comprehensive (loss)/income for the year | (380,776) | 61,163 | ||
Total comprehensive loss for the year | (1,617,324) | (147,938) | ||
Loss for the year attributable to: | ||||
Equity holders of the Company | (1,236,548) | (207,098) | ||
Non-controlling interests | - | (2,003) | ||
(1,236,548) | (209,101) | |||
Loss for the year attributable to equity holders of the Company arising from: | ||||
Continuing operations | (1,236,548) | (211,071) | ||
Discontinued operation | - | 3,973 | ||
(1,236,548) | (207,098) | |||
Total comprehensive loss attributable to: | ||||
Equity holders of the Company | (1,617,324) | (146,447) | ||
Non-controlling interests | - | (1,491) | ||
(1,617,324) | (147,938) | |||
Total comprehensive (loss)/income attributable to equity holders of the Company arising from: | ||||
Continuing operations | (1,617,324) | (148,491) | ||
Discontinued operation | - | 2,044 | ||
(1,617,324) | (146,447) | |||
Year ended 30 June | ||||
2015 | 2014 | |||
Note | HK cents | HK cents | ||
(Loss)/earnings per share attributable to the equity holders of the Company during the year | ||||
Basic (loss)/earnings per share from: | ||||
Continuing operations | 14 | (14.75) | (2.61) | |
Discontinued operation | 14 | - | 0.05 | |
(14.75) | (2.56) | |||
Diluted (loss)/earnings per share from: | ||||
Continuing operations | 14 | (14.75) | (2.61) | |
Discontinued operation | 14 | - | 0.05 | |
(14.75) | (2.56) | |||
As at 30 June 2015
As at 30 June | ||||
2015 | 2014 | |||
Note | HK$'000 | HK$'000 | ||
Non-current assets | ||||
Mining properties | 15 | 1,504,573 | 3,536,267 | |
Property, plant and equipment | 27,815 | 33,242 | ||
Interests in joint ventures | 288 | 1,264 | ||
Other non-current assets | 14,377 | 14,488 | ||
1,547,053 | 3,585,261 | |||
Current assets | ||||
Inventories | 4,274 | 11,857 | ||
Other receivables, deposits and prepayments | 5,480 | 8,117 | ||
Amounts due from related parties | 2,358 | 2,993 | ||
Cash and cash equivalents | 98,297 | 223,698 | ||
110,409 | 246,665 | |||
Total assets | 1,657,462 | 3,831,926 | ||
Equity | ||||
Share capital | 17 | 838,198 | 838,198 | |
Reserves | 315,607 | 1,941,198 | ||
Total equity | 1,153,805 | 2,779,396 | ||
Non-current liabilities | ||||
Other payables | 26,995 | 26,865 | ||
Deferred income tax liabilities | 381,510 | 920,561 | ||
Provisions | 940 | 1,660 | ||
409,445 | 949,086 | |||
Current liabilities | ||||
Trade payables | 16 | 10,201 | 9,540 | |
Other payables and accrued charges | 83,842 | 91,070 | ||
Amounts due to related parties | 169 | 2,834 | ||
94,212 | 103,444 | |||
Total liabilities | 503,657 | 1,052,530 | ||
Total equity and liabilities | 1,657,462 | 3,831,926 | ||
Net current assets | 16,197 | 143,221 | ||
Total assets less current liabilities | 1,563,250 | 3,728,482 | ||
-
GENERAL INFORMATION
Brockman Mining Limited (the 'Company') and its subsidiaries (collectively, the 'Group') principally engage in the acquisition, exploration and towards future development of iron ore project in Australia; and in the exploitation, processing and sales of mineral resources, including copper ore concentrates and other mineral ore products in the People's Republic of China ('PRC').
The Company is a public limited company incorporated in Bermuda as an exempted company with limited liability and its shares are listed on The Stock Exchange of Hong Kong Limited (the 'SEHK') and Australian Securities Exchange (the 'ASX'). The address of its registered office is Clarendon House, 2 Church Street, Hamilton HM11, Bermuda.
These consolidated financial statements are presented in thousands of Hong Kong dollars ('HK$'), unless otherwise stated.
-
BASIS OF PREPARATION
The consolidated financial statements of the Group have been prepared in accordance with International Financial Reporting Standards ('IFRSs') and with the applicable disclosure requirements of the Hong Kong Companies Ordinance. The consolidated financial statements have been prepared under the historical cost convention.
The consolidated financial statements are prepared in accordance with the applicable requirements of the predecessor Companies Ordinance (Cap. 32) for this financial year and the comparative period.
The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group's accounting policies.
Going concernDuring the year ended 30 June 2015, the Group incurred net operating cash outflows of HK$114,415,000, and the cash and cash equivalents of the Group reduced to HK$98,297,000 as at 30 June 2015 from HK$223,698,000 as at 30 June 2014.
In view of these circumstances, the directors of the Company are taking certain measures to mitigate the liquidity pressure and to improve the financial performance which include, but not limited to the reduction in exploration and evaluation activities and the implementation of other cost-saving measures.
The directors have reviewed the Group's cash flow projections which cover a period of not less than twelve months from 30 June 2015. Based on these projections, the Group's cash outflows will be reduced through the implementation of the measures described above. On this basis, the directors of the Company consider that, taking into account the Group's operating performance, reduction of exploration and evaluation activities, and the successful implementation of cost saving measures mentioned above, the Group is expected to have sufficient financial resources to satisfy its future working capital requirements, and to meet its financial obligations as and when required for the next twelve months from the balance sheet date. Accordingly, the directors consider that it is appropriate to prepare the Group's consolidated financial statements on a going concern basis.
-
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The principal accounting policies applied in the preparation of these consolidated financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
-
Amended standards and interpretation adopted by the Group
The Group adopted the following amended standards and interpretation which are mandatory for the Group's financial ended 30 June 2015. The adoption of these amendments to standards and interpretation does not have any significant impact to the results and financial position of the Group.
IAS 19 (2011) (Amendment)
Employee Benefits
IAS 32 (Amendment)
Financial Instruments: Presentation - Offsetting Financial Assets and Financial Liabilities
IAS 36 (Amendment)
Impairments of Assets
IAS 39 (Amendment)
Financial Instruments: Recognition and Measurement
IFRIC-Int 21
Levies
IFRS 10, IFRS 12 and IAS 27
(Revised 2011) (Amendment)
Investment Entities
Annual Improvements Project 2012
Annual Improvements 2010-2012 Cycle
Annual Improvements Project 2013
Annual Improvements 2011-2013 Cycle
-
New and amended standards have been issued but are not effective for the Group's financial year ended 30 June 2015 and have not been early adopted
The following new standards and amendments to standards have been issued, but are not effective for the Group's financial year ended 30 June 2015 and have not been early adopted:
Effective for annual periods beginning on
or after
Annual Improvements Project 2014
Annual Improvements 2012-2014 Cycle
1 January 2016
IAS 1 (Amendment)
The Disclosure Initiative
1 January 2016
IAS 16 and IAS 38 (Amendment)
Classification of Acceptable Methods of Depreciation and Amortisation
1 January 2016
IAS 16 and IAS 41 (Amendment)
Agriculture: Bearer Plants
1 January 2016
IAS 27 (Amendment)
Equity Method in Separate Financial Statements
1 January 2016
IFRS 10, IFRS 12 and IAS 28
(Amendment)
Investment Entities: Applying the Consolidation Exception
1 January 2016
IFRS 10 and IAS 28 (Amendment)
Sale or Contribution of Assets between an Investor and Its associate or Joint Venture
1 January 2016
IFRS 11 (Amendment)
Accounting for Acquisitions of Interests in Joint Operations
1 January 2016
IFRS 14
Regulatory Deferral Accounts
1 January 2016
IFRS 15
Revenue from Contracts with Customers
1 January 2017
IFRS 9
Financial Instruments
1 January 2018
The Group is in the process of making an assessment of the impact of the above new standards and amendments to standards and is not yet in a position to state the impact on the Group's results of operations and financial position.
-
New Hong Kong Companies Ordinance (Cap. 622)
In addition, the requirements of Part 9 'Accounts and Audit' of the new Hong Kong Companies Ordinance (Cap. 622) come into operation as from the Company's first financial year ending 30 June 2015 in accordance with section 358 of that Ordinance. The Group is in the process of making an assessment of expected impact of the changes in the Companies Ordinance on the consolidated financial statements in the period of initial application of Part 9 of the new Hong Kong Companies Ordinance (Cap. 622). So far, it has concluded that the impact is unlikely to be significant and only the presentation and the disclosure of information in the consolidated financial statements will be affected.
-
REVENUE
Revenue represents the amounts received and receivable for sales of mineral ore products for the year. An analysis of the Group's revenue for the year is as follows:
Year ended 30 June
2015
2014
HK$'000
HK$'000
Continuing operations:
Sales of copper ore concentrates
36,525
38,739
Discontinued operation:
Income from provision of transportation services
-
73,124
Turnover consists of sales from mining operation in the PRC of HK$36,525,000 for the year ended 30 June 2015 (2014: HK$38,739,000).
-
SEGMENT INFORMATION
Operating segments are reported in a manner consistent with internal reporting provided to executive directors of the Company who are responsible for allocating resources and assessing performance of the operating segments. The executive directors consider the performance of the Group from a business perspective.
-
Business segments
The Group's reportable operating segments are as follows:
Mineral tenements in Australia
-
tenements acquisition, exploration and towards future development of iron ore project in Western Australia
Mining operations in the PRC
-
exploitation, processing and sales of copper ore concentrates in the PRC
Discontinued operation - Transportation services (Note 6)
-
provision of limousine rental services in Hong Kong and the PRC and provision of airport shuttle bus services in Hong Kong
Others primarily relate to the provision of corporate services for investment holding companies. These activities are excluded from the reportable operating segments and are presented to reconcile to the totals included in the Group's consolidated statement of comprehensive income and consolidated balance sheet.
The Group's chief operating decision-maker assesses the performance of the operating segments based on adjusted operating profit/(loss). Finance costs are not included in the result for each operating segment that is reviewed by executive directors of the Company.
Segment assets reported to executive directors of the Company are measured in a manner consistent with that in the consolidated balance sheet.
The following is an analysis of the Group's revenue and results by business segment:
Continuing operations
Discontinued operation
Mineral tenements in Australia
Mining operation in the PRC
Others
Sub-total
Transportation
services
Total
HK$'000
HK$'000
HK$'000
HK$'000
HK$'000
HK$'000
For the year ended 30 June 2015:
Segment revenue from external customers
-
36,525
-
36,525
-
36,525
Segment results
(1,326,318)
(252,635)
(19,600)
(1,598,553)
-
(1,598,553)
Share of losses of joint ventures
(5,031)
(5,031)
Loss before income tax
(1,603,584)
(1,603,584)
Other information:
Depreciation of property, plant and equipment
(910)
(5,442)
(761)
(7,113)
-
(7,113)
Impairment of mining properties
(Note 15)
(1,216,618)
(225,000)
-
(1,441,618)
-
(1,441,618)
Amortisation of mining properties
-
(10,884)
-
(10,884)
-
(10,884)
Relinquishment of mining properties
(6,833)
-
-
(6,833)
-
(6,833)
Exploration and evaluation expenses
(60,640)
(15,920)
-
(76,560)
-
(76,560)
Income tax credit
367,036
-
-
367,036
-
367,036
For the year ended 30 June 2014:
Segment revenue from external customers
-
38,739
-
38,739
73,124
111,863
Segment results
(90,233)
(59,099)
(54,848)
(204,180)
3,781
(200,399)
Share of losses of joint ventures
(8,090)
-
(8,090)
Finance costs
(804)
(567)
(1,371)
(Loss)/profit before income tax
(213,074)
3,214
(209,860)
Other information:
Gain on disposal of subsidiaries
-
-
-
-
2,822
2,822
Depreciation of property, plant and equipment
(796)
(5,425)
(751)
(6,972)
(9,380)
(16,352)
Impairment of mining properties
(Note 15)
-
(40,000)
-
(40,000)
-
(40,000)
Amortisation of mining properties
-
(12,205)
-
(12,205)
-
(12,205)
Exploration and evaluation expenses
(75,094)
(12,094)
-
(87,188)
-
(87,188)
Finance costs
-
-
(804)
(804)
(567)
(1,371)
Income tax credit
-
-
-
-
759
759
The revenue from external parties reported to executive directors of the Company is measured in a manner consistent with that in the consolidated statement of comprehensive income. Revenue from mining operation in the PRC amounting to HK$36,525,000 (2014: HK$38,739,000) represents sales to a single customer.
The following is an analysis of the Group's assets by business segment as at the respective balance sheet dates:
Continuing operations
Discontinued operation
Mineral tenements in Australia
Mining operation in the PRC
Others
Sub-total
Transportation
services
Total
HK$'000
HK$'000
HK$'000
HK$'000
HK$'000
HK$'000
As at 30 June 2015:
Segment assets
1,285,073
274,764
97,625
1,657,462
-
1,657,462
Total segment assets include:
Interests in joint ventures
288
-
-
288
-
288
Additions to property, plant and equipment
252
1,551
177
1,980
-
1,980
Relinquishment of mining properties
(6,833)
-
-
(6,833)
-
(6,833)
As at 30 June 2014:
Segment assets
3,114,123
521,442
196,361
3,831,926
-
3,831,926
Total segment assets include:
Interests in joint ventures
1,264
-
-
1,264
-
1,264
Additions to property, plant and equipment
518
2,133
39
2,690
2,489
5,179
Additions to mining properties
141
-
-
141
-
141
-
Geographical information
The transportation services are provided in Hong Kong and the PRC. The mining operation is located in the PRC and the mineral tenements are located in Australia.
The following table provides an analysis of the Group's revenue by geographical market, based on the origin of the services:
Year ended 30 June
2015
2014
HK$'000
HK$'000
For continuing operations:
PRC
36,525
38,739
For discontinued operation:
PRC
-
15,817
Hong Kong
-
57,307
-
73,124
The following is an analysis of the carrying amounts of the Group's mining properties, property, plant and equipment and other non-current assets (excluding financial assets) analysed by geographical area in which the assets are located:
As at 30 June
2015
2014
HK$'000
HK$'000
For continuing operations:
PRC
265,910
503,078
Hong Kong
872
1,493
Australia
1,279,283
3,079,527
1,546,065
3,584,098
-
DISPOSAL OF SUBSIDIARIES
On 24 October 2013, the Company and Mr. Leung Chi Yan, Danny ('Mr. Leung'), a director of Perryville Group, entered into a sale and purchase agreement pursuant to which the Company agreed to sell the entire equity interest in Perryville Group Limited and its subsidiaries ('Perryville Group') to Mr. Leung at a consideration of HK$45,000,000 ('Disposal'). Perryville Group is principally engaged in the provision of limousine and airport shuttle transportation services which represents the reportable segment of transportation services.
As part of the Disposal, the payable by Perryville Group to the Company of HK$11,000,000 was assigned to Mr. Leung, the adjusted consideration amounted to HK$34,000,000 which represents the consideration for the Company's equity interest in Perryville Group at the date of Disposal.
The Disposal was completed on 19 February 2014 and the Company ceased to have any control and equity interests in Perryville Group.
The results of Perryville Group are presented in the consolidated financial statements as discontinued operation in accordance with IFRS 5 'Non-current Assets Held for Sale and Discontinued Operations'. The consolidated statement of comprehensive income and consolidated statement of cash flows distinguish discontinued operation from continuing operations.
-
Profit from discontinued operation
An analysis of the result of discontinued operation, and the result recognised on the re-measurement of assets or disposal group, is as follows:
Year ended
30 June
2014
HK$'000
Revenue
73,124
Cost of sales
(58,644)
14,480
Other income
107
Other losses, net
(198)
Selling and administrative expenses
(13,430)
Finance costs
(567)
Profit before income tax
392
Income tax credit
759
Profit for the year from operating activities
1,151
Gain on disposal of subsidiaries
2,822
Profit for the year from discontinued operation
3,973
Profit for the year from discontinued operation attributable to:
- Equity holders of the Company
3,973
- Analysis of the cash flows from discontinued operation
- OTHER INCOME
Year ended 30 June | |
2014 | |
HK$'000 | |
Net cash generated from operating activities | 7,720 |
Net cash used in investing activities | (1,807) |
Net cash used in financing activities | (7,954) |
(2,041) | |
The effect on the consolidated balance sheet, the total considerations received and gain on disposal of subsidiaries are as follows:
2014 | |
HK$'000 | |
Net assets of the disposal group: | |
Property, plant and equipment | 44,238 |
Trade receivables | 23,861 |
Other receivables, deposits and prepayments | 4,549 |
Cash and cash equivalents | 9,112 |
Trade payables | (7,627) |
Other payable and accrued charges | (8,492) |
Bank borrowings | (5,623) |
Obligations under finance leases | (12,206) |
Deferred income tax liabilities | (2,654) |
Provisions | (1,061) |
Total net assets disposed | 44,097 |
Legal and professional fee paid | 798 |
Release of translation reserve | (2,717) |
Gain on disposal | 2,822 |
Consideration, net of direct costs | 45,000 |
Cash consideration | 45,000 |
Legal and professional fee paid | (798) |
Cash and bank balances disposed of | (9,112) |
Total cash inflows from the disposal | 35,090 |
Year ended 30 June | |||
2015 | 2014 | ||
HK$'000 | HK$'000 | ||
Interest on bank deposits | 1,014 | 3,895 | |
Government grant (Note) | 862 | 869 | |
Others | 78 | 624 | |
1,954 | 5,388 | ||
Note: Government grant mainly represents incentive credits provided by the Australia Federal government, for research and development activities carried out in Australia.
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