LP Hill Plc : Final Results

13 November 2013

LP Hill Plc

("LP Hill" or the "Company")

Final Results for the year ended 30 June 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 audited final results for the year ended 30 June 2013.

Chairman's Statement

I am pleased to present the Group's final results for the year ended 30 June 2013.

During the reporting period, the Board has continued to identify and investigate further potential opportunities to expand the Company's asset portfolio in line with our stated strategy. This has included the evaluation of advanced resource projects that are either revenue generating or which have a clear short-term path towards revenue generation. The period reported upon has been extremely challenging for companies operating in the mining sector and the Board has yet to secure a suitably attractive opportunity at a sensible valuation to put to shareholders and potential investors, in the prevailing market environment, to raise the requisite funding. In order to preserve the Company's cash resources, the Board has continued to support the Company by deferring receipt of any of their fees or salaries for the financial year until such time as the Company has completed the acquisition of a new project with an associated fundraising of an appropriate size.

The Marodambo Project in Madagascar currently remains on a care and maintenance footing pending receipt of the requisite approvals from the relevant Madagascan government authorities in respect of the potential Phase 2 exploration work programme and environmental impact study.

Reflecting the limited essential expenditure incurred in order to maintain the good standing of the Marodambo Project and cover the Group's general running costs and the ongoing expenditure associated with conducting the necessary due diligence on potential new attractive project opportunities, the Group incurred a loss before and after taxation for the year ended 30 June 2013 of approximately £107,217 (2012: £213,839).

Post the period end, 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 Board remains confident in the longer term fundamentals for the natural resources sector and 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.

It is with great sadness that on 27 September 2013, Gerry Nealon, our Chairman, passed away. On behalf of the board and everybody at LP Hill, I would like to extend our sincerest condolences to Gerry's family. He will be missed by all of us. Consequently, I assumed the role of Non-Executive Chairman on an interim basis with effect from 30 September 2013 and have now accepted the appointment on a permanent basis.

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 continue to endeavor to identify and secure a suitable opportunity to deliver long-term shareholder value.

Dr. Bernard Olivier

Non-Executive Chairman

12 November 2013

Consolidated Statement of Comprehensive Income

For the year ended 30 June 2013

Consolidated Statement of Financial Position

As at 30 June 2013

Consolidated Statement of Changes in Equity

For the year ended 30 June 2013

Consolidated Statement of Cash Flow

For the year ended 30 June 2013

For the year ended 30 June 2013

1.   General information

LP Hill Plc is currently a mineral exploration company. The Company is a public limited company listed on AIM, a market operated by the London Stock Exchange plc, and is incorporated in England and Wales with company number 05980987. The address of the registered office of the Company is 30 Portland Place, London W1B 1LZ.

The financial information has been prepared on a going concern basis (see Note 8 below).

2.   Basis of preparation and accounting policies

These financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS), including IFRS 6 'Exploration for and Evaluation of Mineral Resources' and IFRIC interpretations issued by the International Accounting Standards Board (IASB) as adopted by the European Union and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS.

The audited financial information contained in this announcement does not constitute the Company's full financial statements for the year ended 30 June 2013 or 2012, but is derived from those financial statements, approved by the board of directors. The auditors' report on the 2013 accounts was (i) unqualified but did include an emphasis of matter paragraph relating to going concern and (ii) did not contain any statement under section 498(2) or (3) of the Companies Act 2006.  The full audited financial statements for the year ended 30 June 2013 will be delivered to the Registrar of Companies and filed at Companies House following the Company's forthcoming annual general meeting.

The group's principal accounting policies have been consistently applied. 

3.   Taxation                                                  

The Company has excess management expenses to carry forward of £709,079 (2012: £656,808) and non trading deficits carried forward of £67,611 (2012: £18,452). Deferred tax assets arising at 20% (2012: 20%) from these losses of £155,300 (2012: £133,450) have not been provided for in these financial statements as their recovery is not probable in the foreseeable future.

4.   Losses per share

Losses per ordinary share have been calculated using the weighted average number of shares in issue during the relevant financial year. The weighted average number of shares in issue was basic 29,418,869 (2012: 27,992,780). The fully diluted weighted average number of shares was 202,698,869 (2012: 201,272,780). The loss for the financial year was £107,217 (2012: £213,839).

5.   Share capital

Number of outstanding existing Warrants at 30 June 2013:

There is a share based payment charge of £50,467 in respect of the warrants issued in the period to 30 June 2010 and £Nil for the periods to 30 June 2012 and 30 June 2013.

No warrants were granted or exercised in the year.

6.   Operating loss

The average number of people (including executive directors) employed during the year was:

7.   Events after the reporting period

Save for entering into an unsecured loan agreement on 11 July 2013 with a private lender for a term loan of £150,000, there were no events after the reporting period that are required to be disclosed.

8.   Going concern

These financial statements have been prepared on the assumption that the Group is a going concern which the Directors believe to be appropriate.  When assessing the foreseeable future, the Directors have considered a period of twelve months from the date of approval of these financial statements. The Directors acknowledge that the Group will be likely to continue making operating losses for the foreseeable future and therefore the Group and Company remain reliant upon their ability to raise finance through other means. The Group is still at an early stage with respect to its Marodambo exploration project in the Tranomaro area of Madagascar and the Directors are currently exploring options to raise further funds to finance the Group's projected working capital requirement over the next twelve month period. The uncertainty as to the timing and amount of such a fund raising exercise requires the Directors to consider the Group's ability to continue as a going concern. In July 2013, the directors raised an additional £150,000 of cash funding by way of a £150,000 unsecured term loan.

The support of the Group's shareholders has been evident in the recent past and continues to be of significant importance. Notwithstanding the aforementioned uncertainty, the Directors are confident that sufficient support will be received from existing shareholders and potential new investors to enable the funding requirement to 30 November 2014 to be satisfied. The Directors will continue to carefully manage the Group's existing resources and control costs at all times.

Accordingly, the Directors are confident that the going concern basis is appropriate and are satisfied that new financing and/or investment will be forthcoming in the period as and when required.

Were the Group to be unable to continue as a going concern, adjustments may have to be made to the balance sheet of the Group to reduce the balance sheet values of assets to their recoverable amounts, to provide for future liabilities that might arise and to reclassify non-current assets and long-term liabilities as current assets and liabilities.

9.   Related party transactions

The Company charged a management fee of £12,796 (2012: £10,720) to Tranomaro Mineral Development Corporation Limited ("TMDC") in the year and, at the financial year end, TMDC had a balance of £496,309 (2012: £483,994) payable to the Company.

10.  Availability of Annual Report and Financial Statements

Copies of the Company's full Annual Report and Financial Statements were posted to shareholders yesterday and will also be made available to download from the Company's website atwww.lphill.com.au.

The Annual Report and Financial Statements will also be made available for inspection at the Company's registered office during normal business hours on any weekday.  LP Hill Plc is registered in England and Wales with registered number 05980987. The registered office is at 30 Portland Place, London W1B 1LZ. 

11.  Annual General Meeting

The Company's next Annual General Meeting ("AGM") will be held at 10.30 a.m. on Friday, 6 December 2013 at the offices of Joelson Wilson LLP, 30 Portland Place, London W1B 1LZ and a formal Notice of AGM is set out at the end of the Annual Report and Financial Statements which were posted to shareholders yesterday.

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