12 September 2016 Bellzone Mining plc ("Bellzone" or "the Company") Unaudited interim results for the six months ended 30 June 2016

Bellzone Mining plc (AIM: BZM) announces its unaudited interim results for the six months ended 30 June 2016.

Key Highlights

  • At 30 June 2016, Bellzone was within the Board-approved working capital budget by 10%. There have been no significant negative unbudgeted expenditures.

  • Ferronickel Project feasibility study work to date has yielded positive results.

  • At 30 June 2016, Bellzone was well within budget on feasibility study work.

  • Loan facility of US$6.5 million to fund working capital requirements and placing of US$2.0 million to fund feasibility study work, as announced in December 2015 and January 2016.

Financing activities

Following the new US$6.5m loan facility with Hudson Global Group Limited ("Hudson") announced in December 2015, Bellzone agreed a placing of new ordinary shares with Hudson raising £1.35m (US$2.0m) to fund feasibility study work for the Kalia ferronickel nickel project, in January 2016.

The US$6.5m loan facility was agreed to provide working capital for the continued operation of the Company during 2016, whilst the US$2.0m placing was agreed to advance the feasibility study. As such, these facilities provide working capital for the activities of the Company through to the end of 2016.

Whilst the outcome of the feasibility study work, published in August 2016, has been positive, to continue the necessary work beyond the end of 2016 Bellzone expects to need to seek further finance.

As at 30 June 2016, Bellzone held net cash of US$2.4 million and had drawn down US$3.0 million of the US$6.5m loan facility from Hudson Global Group. As at 31 August 2016, these balances were US$2.2 million and US$4.0 million respectively.

The total cost of feasibility study work on the Ferronickel Project to date, taken together with the costs of upgrading to a Definitive Feasibility Study, are expected to be within the original budgeted cost of US$ 2.0m. This is however subject to the assessment of the cost of excavating, shipping and analysing a bulk sample of the relevant material and any costs associated with further exploration to upgrade inferred resources to measured and / or indicated resources.

Costs

The Company's overall running costs have increased by 4.5% compared to the first half of 2015. This is largely due to the interest on the US$ 13.7 million loan from major shareholder Hudson Global Group Limited (previously China Sonangol International (S) Pte Ltd). Expenses from operating activities reduced by 3% compared with the first half of 2015 despite the increase in exploration activities required for the ferronickel project in the first half of 2016.

Given the closure of the Company's office in Jersey office the relocation of finance and IT functions to Singapore and placing unutilised resources in Guinea on technical leave while finalising the feasibility studies on the ferronickel project, the Company expects further cost savings in the second half of 2016.

Expenditure is currently focused on developing the ferronickel project at Kalia whilst ensuring:

  • Equipment is under care and maintenance;

  • Security is in place to prevent theft and damage to assets; and

  • No compromise to statutory or regulatory compliance processes.

Enquiries: Bellzone Mining plc

Simon Edwards

+44 (0) 7767 492 712

WH Ireland Limited

Nominated Adviser

James Joyce / James Bavister

+44 (0) 20 7220 1666

HD Capital Partners Ltd

Broker

Paul Dudley / Philip Haydn-Slater

+44 (0) 20 3551 4870

Bell Pottinger

Financial Public and Investor Relations Daniel Thöle

http://www.bellzone.com

+44 (0) 20 3772 2500

Condensed Consolidated Statement of Financial Position At 30 June 2016

Unaudited 30 June

2016

Unaudited 30 June

2015

Audited 31 December

2015

Note

$'000

$'000

$'000

ASSETS

Non-current assets

Property, plant and equipment

2,065

3,744

2,613

Other intangible assets

160

-

194

Mineral properties in the exploration and evaluation phase

3

16,066

16,066

16,066

Total non-current assets

18,291

19,810

18,873

Current assets

Cash and cash equivalents

2,379

2,373

598

Trade and other receivables

81

109

134

Inventories

723

733

640

Total current assets

3,183

3,215

1,372

Total assets

21,474

23,025

20,245

EQUITY

Issued capital

4

333,349

331,352

331,352

Reserves

5

5,101

5,092

5,101

Retained losses

(336,391)

(327,675)

(332,473)

Total equity

2,059

8,769

3,980

LIABILITIES

Non-current liabilities

Secured loans

13,691

8,700

10,691

Total non-current liabilities

13,691

8,700

10,691

Current liabilities

Trade and other payables

5,532

5,508

5,513

Provisions

192

48

61

Total current liabilities

5,724

5,556

5,574

Total liabilities

19,415

14,256

16,265

Total equity and liabilities

21,474

23,025

20,245

The above consolidated statement of financial position should be read in conjunction with the accompanying notes.

Condensed Consolidated Statement of Comprehensive Income For the six months ended 30 June 2016

Unaudited 6 months

ended 30 June

2016

$'000

Unaudited 6 months

ended 30 June

2015

$'000

Employee benefits expense

(1,759)

(1,691)

Depreciation and amortisation expenses

(582)

(735)

Administration expenses

(354)

(453)

Consulting expenses

(263)

(202)

Exploration expenses

(436)

(261)

Legal expenses

(96)

(175)

Occupancy expenses

(35)

(104)

Travel and accommodation expenses

(53)

(72)

Results from operating activities

(3,578)

(3,693)

Finance income

3

3

Finance expense

(341)

(59)

Loss before income tax from continuing operations

(3,916)

(3,749)

Income tax expense

-

-

Loss for the period from continuing operations

(3,916)

(3,749)

Total comprehensive loss for the period, net of tax:

Attributable to equity holders of the parent entity

(3,916)

(3,749)

Cents

Cents

Loss per share attributable to the ordinary equity holders of the parent entity:

Basic and diluted loss per share

(0.415)

(0.532)

The above consolidated statement of comprehensive income should be read in conjunction with the accompanying notes.

Bellzone Mining plc published this content on 12 September 2016 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 12 September 2016 14:05:05 UTC.

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