Wrap Text
Interim results
DiamondCorp plc
AIM share code: DCP
JSE share code: DMC
ISIN: GB00B183ZC46
(Incorporated in England and Wales)
(Registration number 05400982)
(SA company registration number 2007/031444/10)
(‘DiamondCorp’ or ‘the Company’ or ‘the Group’)
INTERIM RESULTS (UNAUDITED) FOR THE SIX MONTH PERIOD ENDED 30 JUNE 2013
DiamondCorp plc, a southern Africa focussed diamond mine development and
exploration company, releases its unaudited interim results for the six month
period ended 30 June 2013.
HIGHLIGHTS
- On 7 January 2013, DiamondCorp finalised a R320 million (£21.23 million
at June 30 exchange rate) finance package for the 47 level block cave
development at the Lace Mine when it entered into a term loan agreement
with Laurelton Diamonds, Inc., a wholly owned subsidiary of Tiffany &
Co.(‘Tiffany Loan’) for $6 million (£3.94 million). On 10 January 2013
and 10 April 2013, the Tiffany Loan was drawn down in two equal tranches.
- From the proceeds of the Tiffany Loan and the R59.7 million convertible
bond issue completed in December 2012, R100 million (£6.64 million) was
advanced to the Company’s 74%-owned operating subsidiary, Lace Diamond
Mines (Pty) Limited (‘LDM’). These funds allowed LDM to meet the initial
drawdown conditions of a R220 million project loan agreement with the
Industrial Development Corporation of South Africa (‘IDC Loan’) signed in
September 2012.
- After the period, the first R30 million (£1.99 million) tranche of the
IDC loan was drawn down.
- Underground mine development commenced at Lace in the first quarter and
remains on schedule and within budget for commencement of production in
the first half of 2015.
- The 1.2 million tonnes per annum Lace diamond recovery plant was
refurbished during the period and was successfully commissioned post the
period end. Re-treatment of more than 3 million tonnes of tailings that
remain on site has recommenced. The preparation of the marketing and sale
of the first 5,000 carats of tailings diamonds is underway.
- A number of corporate events were finalised after the period end,
including the appointment of Hulme Scholes as an independent Non-
Executive Director; the relocation of the finance function from London to
the Lace Mine; additional corporate overhead cost efficiencies; and a
reorganisation of the Company’s share capital to a par value of 0.1 pence
each.
- The net loss for the six months ended 30 June 2013 was £2,198,339
(R33,125,232) v. 30 June 2012 £1,556,701 (R23,456,838).
Commenting on the results, DiamondCorp CEO Paul Loudon said: ‘The period under
review saw us complete the finance package and commence development of the
underground mine at Lace. The mine is expected to produce up to 500,000 carats
of diamonds per annum for over 25 years commencing in the first half of 2015,
and heralds the transition of DiamondCorp from explorer to diamond producer.
The period also marks the commencement of a long-term association with Tiffany
which allows the prestigious jewellery retailer access to a new supply of
diamonds that meets its quality standards and allows for increased traceability
from source to end-user.’
2 September 2013
London
CONSOLIDATED INCOME STATEMENT
Six months ended 30 June 2013
Six months Six months
ended ended
30 June 30 June
2013 2012
£ £
Administrative expenses (1,484,956) (1,192,493)
Depreciation and amortisation (202,552) (387,165)
expense
OPERATING LOSS (1,687,508) (1,579,658)
Investment revenues – interest 29,128 22,957
on bank deposits
Interest expense (487,459) -
Finance costs (52,500) -
LOSS BEFORE TAX (2,198,339) (1,556,701)
Tax - -
LOSS FOR THE FINANCIAL PERIOD (2,198,339) (1,556,701)
ATTRIBUTABLE TO:
EQUITY HOLDERS OF THE PARENT (1,884,889) (1,325,656)
NON CONTROLLING INTEREST (313,450) (231,045)
(2,198,339) (1,556,701)
BASIC & DILUTED LOSS PER SHARE £0.008 £0.006
R0.121 R0.090
HEADLINE LOSS PER SHARE £0.008 £0.006
R0.121 R0.090
All of the activities of the Group are classed as continuing.
STATEMENT OF CHANGES IN EQUITY
Six months Six months
ended ended
30 June 30 June
2013 2012
£ £
Opening balance 13,072,716 16,601,837
Loss for the financial period
Attributable to equity holders (1,884,889) (1,325,656)
of the parent
Attributable to non-controlling (371,898) (231,045)
interest
New equity share capital 180,000 -
subscribed
Premium on new equity share 90,000 -
capital subscribed
Translation reserve (962,564) (539,168)
Value attributed to options granted 72,400 -
Closing balance 10,195,765 14,505,968
CONSOLIDATED BALANCE SHEET
30 June 31 December
2013 2012
£ £
NON-CURRENT ASSETS
Goodwill 4,606,026 4,606,026
Property, plant and equipment 10,167,428 8,776,273
14,773,454 13,382,299
CURRENT ASSETS
Inventories 276,809 297,474
Other receivables 592,582 195,028
Cash and cash equivalents 3,004,318 4,319,776
3,873,709 4,812,278
TOTAL ASSETS 18,647,163 18,194,577
CURRENT LIABILITIES
Other payables (302,038) (765,501)
Other current borrowings - (68,485)
SA Bond Interest Accrual (16,358) -
Convertible bond notes payable (2,576,792) (2,642,739)
Provisions (109,454) (119,745)
Derivative financial instruments (1,438,791) (1,525,391)
(4,443,433) (5,121,861)
NON-CURRENT LIABILITIES
Long term loan (4,007,965) -
NET ASSETS 10,195,765 13,072,716
EQUITY
Share capital 8,305,184 8,125,184
Share premium 26,885,360 26,795,360
Warrant reserve 92,000 92,000
Share option reserve 511,636 439,236
Translation reserve (1,712,714) (750,150)
Retained losses (22,409,549) (20,524,660)
EQUITY ATTRIBUTABLE TO EQUITY 11,671,917 14,176,970
HOLDERS OF THE PARENT
NON CONTROLLING INTEREST (1,476,152) (1,104,254)
TOTAL EQUITY 10,195,765 13,072,716
CONSOLIDATED CASH FLOW STATEMENT
Six months Six months
ended ended
30 June 30 June
2013 2012
£ £
Operating loss for the period (1,687,508) (1,579,658)
Depreciation and amortisation 202,552 387,165
Other non-cash charges - 5,051
Effect of foreign exchange (224,791) -
translation
Non-cash bonus payments (in shares and
options) 289,900 -
Capitalised interest 115,280 -
Increase in receivables (397,554) (38,888)
(Increase) / Decrease in inventories 20,665 (172,467)
(Decrease) / Increase in other payables (678,428) (146,332)
NET CASH USED IN OPERATING (2,359,884) (1,545,129)
ACTIVITIES
INVESTING ACTIVITIES
Purchase of intangible assets - (454,744)
Purchase of property, plant and (2,594,366) (81,443)
equipment
Interest received 29,128 22,957
NET CASH USED IN INVESTING (2,565,238) (513,230)
ACTIVITIES
FINANCING ACTIVITIES
Proceeds on receipt of long 3,830,427 -
term loan
NET CASH FROM FINANCING ACTIVITIES 3,830,427 -
NET (DECREASE) / INCREASE IN CASH (1,094,696) (2,058,359)
AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS AT 4,319,776 2,632,760
BEGINNING OF PERIOD
Effect of foreign exchange (220,762) (277,826)
rate changes
CASH AND CASH EQUIVALENTS AT 3,004,318 296,575
END OF PERIOD
NOTES TO THE FINANCIAL STATEMENTS
Six months ended 30 June 2013
1. ACCOUNTING POLICIES
These interim financial statements have been prepared using accounting
policies consistent with International Financial Reporting Standards (IFRSs).
The same accounting policies, presentation and methods of computation are
followed in the condensed interim financial information as applied in the
Group's latest annual audited financial statements. The financial figures
included in this half-yearly report have been computed in accordance with
IFRSs applicable to interim periods.
These interim financial statements were approved by the Board on 30 August
2013 and do not constitute statutory financial statements within the meaning
of Section 435 of the Companies Act 2006. The results for the year ended 31
December 2012 have been extracted from the statutory financial statements of
DiamondCorp plc.
A copy of the statutory accounts for the year ended 31 December 2012 has been
delivered to the Registrar of Companies. The auditors’ report on those
accounts was not qualified and did not contain statements under Section 498
(2) or (3) of the Companies Act 2006; however the auditor’s report did
contain an emphasis of matter in respect of the material uncertainty around
the company’s ability to continue as a going concern.
These interim financial statements have been prepared using the accounting
policies set out in the Group’s 2012 statutory accounts.
Results for the six-month period ended 30 June 2013 and 30 June 2012 have not
been audited.
The comparative information presented in the income statement has been
prepared for the period 1 January 2012 – 30 June 2012. This has been
performed in order to comply with the AIM rules and is presented solely for
this purpose.
2. LOSS PER SHARE
IAS 33 “Earnings per share” requires presentation of diluted earnings per
share when a company could be called upon to issue shares that would decrease
net profit or increase net loss per share. For a loss-making company with
outstanding share options, net loss per share would only be decreased by the
exercise of out-of-money options. Since it seems inappropriate to assume that
option holders would exercise out-of-money options, no adjustment has been
made to basic loss per share for out-of-money share options.
The calculation of basic and diluted loss per ordinary share is based on the
loss attributable to equity holders of the parent of £1,839,889 for the six
months ended 30 June 2013 (30 June 2012: £1,325,656) and on 276,839,478
ordinary shares (30 June 2012: 242,28,048) being the weighted-average number
of ordinary shares in issue.
The Group presents and alternative measure of loss per share after excluding
all capital gains and losses from the loss attributable to ordinary
shareholders (“Headline earnings / (loss)”). The impact of this is as
follows:
2013 2012
Basic loss per share £0.008 £0.006
R0.121 R0.090
Headline loss per share £0.008 £0.006
R0.121 R0.090
3. SHARE CAPITAL
30 June 31 December
2013 2012
Called up, allotted and fully paid
No. £ No. £
Ordinary shares
of 3 pence each 276,839,478 8,305,184 270,839,478 8,125,184
R R
125,145,004 122,432,710
In January 2013, 4,500,000 ordinary shares of 5 pence each were issued to a
director and certain employees for successful completion of the project
financing to fund the development of Lace mine.
In April 2013, 1,500,000 ordinary shares of 3.5 pence each were issued to a
financial advisor in respect of a success fee for introducing Laurelton
Diamonds, Inc., a wholly owned subsidiary of Tiffany & Co.
4. EVENTS AFTER THE REPORTING PERIOD
A special resolution was passed at the AGM held on 02 July 2013 giving the
Group the option of settling the convertible bond debt through the issue of a
fixed amount of shares.
Also approved at the meeting held on 02 July resolutions were passed by the
majority of votes cast, approving the reorganisation of the Company’s share
capital.
Pursuant to the share capital reorganisation, dealings in the Company’s
existing ordinary shares with par value of 3 pence each ceased at the close
of business on 2 July 2013 and dealings in the new ordinary shares with par
value of 0.1 pence commenced on both AIM and AltX on 3 July 2013.
SHARE CAPITAL AS AT 02 JULY 2013
02 July 30 June
2013 2013
Called up, allotted and fully paid
No. £ No. £
Ordinary shares
of 3 pence each - - 276,839,478 8,305,184
02 July 30 June
2013 2013
New Ordinary shares
of 0.1 pence each 276,839,478 276,840 -
Deferred Ordinary shares
of 2.90 pence each 276,839,478 8,028,344 -
- Existing ordinary shares were sub-divided into one new ordinary share of
0.1 pence each (New Ordinary Share”) and one deferred ordinary share of 2.90
pence each (Deferred Ordinary Share).
-The New Ordinary Shares continue to carry the same rights and benefits as
those attached to the Company’s existing ordinary shares (save for the
reduction in nominal value). The number of New Ordinary Shares in issue
following the Share Capital Reorganisation is identical to the number of
existing ordinary shares in issue immediately prior to the Share Capital
Reorganisation.
-The Deferred Ordinary Shares do not entitle the holders to (a) receive
notice of or attend and vote at any general meeting of the Company; (b) to
receive any dividend or other distribution; or (c) to participate in any
return on capital on winding up, other than the nominal amount paid on such
shares following a substantial distribution of ordinary shares in the
Company.
-The Deferred Ordinary Shares are effectively valueless, non-transferable and
have no effect on the economic interest of the Shareholders.
Contact details:
DiamondCorp plc
Paul Loudon, Chief Executive
Tel: +27 56 212 2930
+44 20 3151 0970
UK Broker & Nomad
Panmure Gordon (UK) Limited
Dominic Morley/Adam James/Hannah Woodley
Tel: +44 20 7886 2500
JSE Designated Advisor
Sasfin Capital (a division of Sasfin Bank Limited)
Kim Dawson
Tel: +27 118097794
Johannesburg
02 September 2013
Date: 02/09/2013 08:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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