EMERGING MARKET MINERALS PLC 
By
28 March 2014
LP Hill Plc
("LP Hill" or the "Company")
Interim Results for the six months ended 31 December 2013
LP Hill (AIM: LPH), the AIM listed uranium, thorium, base and precious metals and gemstones exploration and development company operating in Madagascar, announces its unaudited interim results for the six months ended 31 December 2013.
Highlights :
· Continued identification and ongoing evaluation of a number of attractive projects for potential acquisition in order to expand the Company's asset portfolio.
· Loss before and after taxation for the period of approximately £77,000 (31 December 2012: £48,000).
· Unsecured £150,000 term loan obtained from a private lender to provide additional working capital for the Group.
Post reporting period end :
· Unsecured loan notes 2014 and accrued interest thereon converted in full by the Company's largest shareholder into equity in March 2014.
For further information, please contact :
LP Hill Plc Bernard Olivier, Non-Executive Chairman | Tel: +61 8 9368 1566 Mob: +61 4 0894 8182 |
Strand Hanson Limited (Nominated Adviser) James Harris Matthew Chandler James Dance | Tel: +44 (0) 20 7409 3494 |
Pareto Securities Limited (Broker) Guy Wilkes | Tel: +44 (0) 20 7786 4370 |
or visit: www.lphill.com.au |
Chairman's Statement
I am pleased to present the Group's unaudited interim results for the six month period ended 31 December 2013.
During the period, the Board has continued to diligently assess further potential acquisition opportunities to expand the Company's asset portfolio in line with our stated strategy. This has included the evaluation of more advanced projects that are either revenue generating or have a clear short-term path towards revenue generation. The Board has also continued to support the Company by deferring receipt of any of their fees or salaries for the period until such time as the Company has completed the acquisition of a new project with an associated fundraising of an appropriate size to, inter alia , cover such payments.
We still await the requisite environmental clearances and approvals from the relevant Madagascan government authorities in respect of the potential Phase 2 exploration work programme for our Marodambo Project in Madagascar and, in the meantime, the project remains on a care and maintenance footing.
Reflecting the limited essential expenditure incurred in maintaining the good standing of the Marodambo Project, the Group's general running costs and the ongoing expenditure associated with the necessary due diligence on potential new attractive project opportunities, the Group incurred a loss before and after taxation for the six month period ended 31 December 2013 of approximately £77,000 (31 December 2012: loss of £48,000).
On 11 July 2013, in order to provide additional working capital for the Group, the Company entered into an unsecured loan agreement with a private lender for a £150,000 term loan at an interest rate of 8 per cent. above Barclays Bank PLC's base rate from time to time. The loan, together with accrued interest, is repayable 12 months from the date of execution of the loan agreement.
The Company anticipates raising additional equity and/or debt finance in due course in order to ensure that the Group maintains an appropriate capital structure and is able to fund its ongoing working capital requirements and potential future development opportunities.
Post the period end, the Company's largest shareholder, the Hereford Group Limited, elected to convert its £300,000 unsecured loan notes due 14 March 2014 in full, together with the accrued interest thereon, resulting in the issue of 4,970,264 new ordinary shares of 0.1 pence each in the capital of the Company at a revised conversion price of 6.5 pence per share.
I would again like to take this opportunity to thank all of our shareholders, advisers and other stakeholders for their continuing support and patience as we endeavor to identify and secure a suitable opportunity to deliver long-term shareholder value.
Dr Bernard Olivier
Non-Executive Chairman
27 March 2014
Consolidated Statement of Comprehensive Income
For the six months ended 31 December 2013
Six months to 31 December 2013 Unaudited | Six months to 31 December 2012 Unaudited | Year ended 30 June 2013 Audited | ||||||
£'000s | £'000s | £'000s | ||||||
Revenue | - | - | - | |||||
Administrative expenses | (64) | (41) | (94) | |||||
Interest payable | (13) | (7) | (13) | |||||
──────── | ──────── | ──────── | ||||||
Loss before taxation | (77) | (48) | (107) | |||||
Taxation | - | - | - | |||||
──────── | ──────── | ──────── | ||||||
Loss for the period from continuing operations attributable to shareholders | (77) | (48) | (107) | |||||
═══════ | ═══════ | ═══════ | ||||||
Loss per share | ||||||||
Basic & Diluted | (0.26)p | (0.17)p | (0.36p | |||||
═══════ | ═══════ | ═══════ | ||||||
Consolidated Statement of Financial Position as at 31 December 2013
Six months to 31 December 2013 Unaudited | Six months to 31 December 2012 Unaudited | Year ended 30 June 2013 Audited | ||||||||||
£'000s | £'000s | £'000s | ||||||||||
ASSETS | ||||||||||||
| Non-current assets | ||||||||||||
Goodwill | 1,145 | 1,145 | 1,145 | |||||||||
Intangibles | 38 | 38 | 38 | |||||||||
─────── | ─────── | ─────── | ||||||||||
1,183 | 1,183 | 1,183 | ||||||||||
─────── | ─────── | ─────── | ||||||||||
| Current assets | ||||||||||||
Trade and other receivables | 8 | 12 | 19 | |||||||||
Cash and cash equivalents | 85 | 39 | 12 | |||||||||
─────── | ─────── | ─────── | ||||||||||
93 | 51 | 31 | ||||||||||
─────── | ─────── | ─────── | ||||||||||
| LIABILITIES | ||||||||||||
| Current liabilities | ||||||||||||
Trade and other payables | (533) | (55) | (394) | |||||||||
─────── | ─────── | ─────── | ||||||||||
(533) | (55) | (394) | ||||||||||
─────── | ─────── | ─────── | ||||||||||
Net current (liabilities)/assets | (440) | (4) | (363) | |||||||||
Non-current liabilities | ||||||||||||
Financial liabilities - borrowings and | ||||||||||||
interest bearing loans | (200) | (500) | (200) | |||||||||
─────── | ─────── | ─────── | ||||||||||
| Net assets | 543 | 679 | 620 | |||||||||
══════ | ══════ | ══════ | ||||||||||
EQUITY | ||||||||||||
| Capital and reserves | ||||||||||||
Called up share capital | 107 | 107 | 107 | |||||||||
Share premium | 3,559 | 3,559 | 3,559 | |||||||||
Share option reserve | 50 | 50 | 50 | |||||||||
Profit and loss deficit | (3,174) | (3,038) | (3,097) | |||||||||
─────── | ─────── | ─────── | ||||||||||
Total equity | 542 | 678 | 619 | |||||||||
Minority Interest | 1 | 1 | 1 | |||||||||
─────── | ─────── | ─────── | ||||||||||
543 | 679 | 620 | ||||||||||
══════ | ══════ | ══════ | ||||||||||
Consolidated Statement of Changes in Equity
For the six months ended 31 December 2013
Share | Share | Share | Retained | ||
Capital | Premium | Option | Losses | Total | |
Reserve | |||||
£'000s | £'000s | £'000s | £'000s | £'000s | |
As at 1 January 2012 | 105 | 3,454 | 50 | (2,850) | 759 |
(Loss) after tax for the period | - | - | - | (140) | (140) |
─────── | ─────── | ────── | ────── | ────── | |
As at 30 June 2012 | 105 | 3,454 | 50 | (2,990) | 619 |
(Loss) after tax for the period | - | - | - | (48) | (48) |
Conversion of loan and accrued interest | 2 | 105 | - | - | 107 |
─────── | ─────── | ────── | ────── | ────── | |
As at 31 December 2012 | 107 | 3,559 | 50 | (3,038) | 678 |
(Loss) after tax for the period | - | - | - | (59) | (59) |
─────── | ─────── | ────── | ────── | ────── | |
As at 30 June 2013 | 107 | 3,559 | 50 | (3,097) | 619 |
(Loss) after tax for the period | - | - | - | (77) | (77) |
─────── | ─────── | ────── | ────── | ────── | |
As at 31 December 2013 | 107 | 3,559 | 50 | (3,174) | 542 |
══════ | ══════ | ═════ | ═════ | ═════ |
Consolidated Cash Flow Statement
For the six months ended 31 December 2013
Six months to 31 December 2013 Unaudited | Six months to 31 December 2012 Unaudited | Year ended 30 June 2013 Audited |
Note | £'000s | £'000s | £'000s | |
6 | (64) | (82) | (103) | |
Finance costs | (13) | (7) | (13) | |
─────── | ─────── | ─────── | ||
Cash generated/(absorbed in) operating activities | (77) | (89) | (116) | |
─────── | ─────── | ─────── | ||
Purchase of intangibles | - | - | - | |
─────── | ─────── | ─────── | ||
Net cash from investing activities | - | - | - | |
─────── | ─────── | ─────── | ||
Loan received | 150 | - | - | |
─────── | ─────── | ─────── | ||
Net cash from financing activities | - | - | - | |
─────── | ─────── | ─────── | ||
Net cash inflow/(outflow) | 73 | (89) | (116) | |
Cash and cash equivalents at the beginning of the period | 12 | 128 | 128 | |
─────── | ─────── | ─────── | ||
Cash and cash equivalents at the end of the period | 85 | 39 | 12 | |
══════ | ══════ | ══════ |
Notes to the Interim Financial Information
For the six months ended 31 December 2013
1. General information
LP Hill Plc is a mineral exploration and development company. The Company is a public limited company incorporated in England and Wales with company number 05980987. It is listed on AIM, a market operated by the London Stock Exchange Plc.
2. Basis of preparation
The interim financial information, which incorporates the financial information of the Company and its subsidiary undertakings (the "Group"), has been prepared using the historical cost convention, on a going concern basis and in accordance with International Financial Reporting Standards ("IFRS") as adopted by the European Union ("EU"). The interim financial information for the six months ended 31 December 2013 complies with IAS 34 'Interim Financial Reporting' and was approved by the Board on 27 March 2014.
The unaudited interim financial information contained in this announcement for the period ended 31 December 2013 does not constitute statutory accounts within the meaning of Section 435 of the Companies Act 2006. The comparative figures for the year ended 30 June 2013 are extracted from the statutory financial statements for that financial year which have been delivered to the Registrar of Companies and which contained an unqualified audit report and did not contain any statements under Sections 498 to 502 of the Companies Act 2006.
3. Significant accounting policies
The accounting policies applied are consistent with those of the annual financial statements for the year ended 30 June 2013, as described in those financial statements.
There are no IFRSs or IFRIC interpretations that are effective for the first time in this financial period that would be expected to have a material impact on the Group.
There are no other IFRSs or IFRIC interpretations that are not yet effective that would be expected to have a material impact on the Group.
4. Segmental analysis
The Group's primary reporting format is business segments and its secondary format is geographical segments. The Group currently only operates in a single business and geographical segment. Accordingly, no segmental information by business segment or geographical segment is required.
5. Losses per share
Losses per ordinary share have been calculated using the weighted average number of shares in issue during the relevant financial period. The weighted average number of equity shares in issue was, basic and diluted, 30,137,806 (30 June 2013: 30,137,806; 31 December 2012: 28,692,245). The loss for the financial period was £77,000 (loss 31 December 2012: £48,000; loss 30 June 2013: £107,000).
6. Reconciliation of operating (loss) to net cash outflow from operating activities
Six months to 31 December 2013 | Six months to 31 December 2012 | Year ended 30 June 2013 | ||||
£'000s | £'000s | £'000s | ||||
Operating (Loss) for the period | (64) | (41) | (94) | |||
Adjustments for: | ||||||
Decrease in receivables | 11 | 7 | - | |||
Decrease in payables | (11) | (48) | (9) | |||
─────── | ─────── | ─────── | ||||
Net cash inflow/(outflow) from operating activities | (64) | (82) | (103) | |||
══════ | ══════ | ══════ |
7. Called up share capital
The issued ordinary share capital as at 31 December 2012 was 28,692,245 and as at 30 June 2013 and 31 December 2013 was 30,137,806 ordinary shares of £0.001 each.
8. Unsecured loan and convertible loan notes
The Company entered into an unsecured loan agreement with Irvine Securities Limited on 11 July 2013. The principal amount is £150,000 and interest accrues at a rate of 8 per cent. above Barclays Bank PLC's base rate from time to time. The loan, together with accrued interest, is repayable 12 months from the date of execution of the loan agreement.
The outstanding convertible loan notes are split between current and non-current and have the following redemption dates and key terms:
- £300,000 with a redemption date of 14 March 2014 and conversion price of 10 pence per ordinary share.
- £200,000 with a redemption date of 27 February 2015 and conversion price of 6 pence per ordinary share.
The convertible loan notes accrue interest at a rate of 2 per cent. above the Royal Bank of Scotland plc's base rate from time to time, compounded annually.
9. Related party transactions
Transactions between the Group and its subsidiaries, which are related parties, have been eliminated on consolidation and are not required to be disclosed.
10.Post balance sheet events
On 17 March 2014, the Company announced that the Hereford Group Limited ("Hereford") had elected to convert its abovementioned £300,000 unsecured loan notes due 14 March 2014 in full into 4,615,385 new ordinary shares of 0.1p each at a revised conversion price of 6.5 pence per ordinary share. Hereford was also issued a further 354,879 new ordinary shares at the same price in satisfaction in full of the accrued interest due on the notes.
11 . Availability of Interim Financial Statements
A copy of these unaudited interim results will be made available from the Company's registered office at 30 Portland Place, London W1B 1LZ during normal business hours on any weekday. The interim financial information will also be made available on the Company's website at: www.lphill.com.au.
This information is provided by RNS
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