Wrap Text
Unaudited interims for the six mont period ended June 2015
DiamondCorp plc
JSE share code: DMC
AIM share code: DCP
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
2015
DiamondCorp plc, the Southern Africa focussed diamond mine development and exploration
company, releases its unaudited interim results for the six month period ended 30 June
2015.
HIGHLIGHTS
- After adjustments for a weaker Rand exchange rate, the pre-tax loss for the period
was £3.159 million compared with £2.748 million in the same period in 2014.
- Continued close attention to cost control saw administrative expenditure for the
period reduced to £0.671 million (£0.869 million in 2014).
- Total assets at 30 June were £35.100 million (£32.413 million in 2014) and liabilities
were £28.242 million (£25.415 million in 2014).
- Cash at 30 June was £1.943 million. After the period end, a further £2.089 million
was raised from a heavily oversubscribed Open Offer.
- Processing of kimberlite from development continues to return encouraging results in
terms of diamond size frequency and quality.
- As has been reported, for safety reasons, underground tunnel development at the
Lace mine is proceeding slower than planned in fractured ground close to old
workings. Some zones, particularly on the eastern side of the pipe have been found
to contain kimberlite of a quite friable nature. This has reduced the rate of advance
and as a result of DiamondCorp’s insistence on installing additional support,
particularly at tunnel cross cuts in the kimberlite, will continue to impact on the
development timetable. These ground conditions will be a positive for fragmentation
and caving when mining commences.
- Additional anti-rollback idlers for the underground conveyor belt system to meet new
Department of Mineral Resources’ requirements have started to arrive on site and
installation has commenced. The majority of the installation is expected to be
completed during September ahead of the ramp up in commercial production from
the Upper K4 mining block during Q4 2015.
- The Company’s first diamond sale is now scheduled for October, when tunnel and
initial slot drive tonnage will have provided a sufficiently representative parcel of
kimberlite diamonds.
- The result of initial diamond sales along with controlled bulk test results from the
kimberlite tunnel development will provide the required information for release of the
Company’s upgraded resource statement.
- Detailed studies progressed on options for introducing waste sorting systems in the
processing plant to optimise mining of the Lace kimberlites in the longer-term with
initial encouraging results.
1 September 2015
CONSOLIDATED INCOME STATEMENT
Six months
ended Six months
30 June ended
2015 30 June 2014
(Unaudited) (Unaudited)
£ £
Other income 1 700 (129 303)
Operating expenses (672 480) (739 963)
Operating loss (670 780) (869 266)
Investment revenues 8 914 21 988
Fair value adjustments (2 497 523) (1 585 592)
Finance costs - (316 102)
Loss before tax (3 159 389) (2 748 972)
Tax - -
Loss for the period (3 159 389) (2 748 972)
Attributable to:
Equity holders of the parent (3 098 379) (2 676 238)
Non-controlling interest (61 010) (72 734)
(3 159 389) (2 748 972)
Basic and diluted loss per share (pence) (Note 2) (0.98) (0.91)
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Six months
ended Six months
30 June ended
2015 30 June 2014
(Unaudited) (Unaudited)
£ £
Net loss (3 159 389) (2 748 972)
Other comprehensive loss:
Items that may be reclassified to profit and
loss:
Exchange differences on translating foreign
operations (396 738) (108 048)
Total comprehensive loss (3 556 127) (2 857 020)
Total comprehensive loss attributable to:
Equity holders of the parent (3 348 102) (2 371 327)
Non-controlling interest (208 026) (485 693)
(3 556 127) (2 857 020)
CONSOLIDATED BALANCE SHEET
Six months ended Year ended
30 June 2015 31 December 2014
(Unaudited) (Audited)
£ £
Assets
Non-Current Assets
Property, plant and equipment 27 569 428 23 993 549
Goodwill 4 606 026 4 606 026
Rehabilitation trust fund 94 864 101 199
Restricted cash 65 836 70 232
32 336 154 28 771 006
Current assets
Inventories 450 552 455 684
Current tax receivable 5 989 6 651
Other receivables 363 723 648 810
Cash and cash equivalents 1 943 862 2 531 420
2 764 126 3 642 565
TOTAL ASSETS 35 100 280 32 413 571
Equity and Liabilities
Equity
Equity Attributable to owners of the parent
Share capital 40 656 614 37 161 666
Reserves (2 296 156) (1 967 241)
Accumulated loss (29 147 301) (26 048 922)
9 213 157 9 145 503
Non-Controlling interest (2 355 388) (2 147 363)
Total Equity 6 857 769 6 998 141
Liabilities
Non-Current Liabilities
Other financial liabilities (18 114 717) (17 972 843)
Provisions (545 342) (581 756)
(18 660 059) (18 554 599)
Current Liabilities
Compound instruments - liabilities (2 902 061) (2 811 742)
Compound instruments - derivatives (5 990 165) (3 730 434)
Trade and other payables (690 226) (318 656)
(9 582 452) (6 860 832)
Total Liabilities (28 242 511) (25 415 431)
Total Equity and Liabilities (35 100 280) (32 413 571)
STATEMENT OF CHANGES IN EQUITY (UNAUDITED)
Total
Non
Total Total Retained attributable to
controlling Total
Share Capital Reserves losses owner of the
interest
parent
£ £ £ £ £ £
Balance at 1 January
35 190 544 (1 807 236) (22 907 307) 10 476 001 (1 946 868) 8 529 133
2014
Loss for financial year - - (2 676 238) (2 676 238) (72 734) (2 748 972)
Other comprehensive
income - 606 968 - 606 968 (715 016) (108 048)
Total comprehensive
income - 606 968 (2 676 238) (2 069 270) (787 750) (2 857 020)
Issue of share capital 1 971 123 - - 1 971 123 1 971 123
Balance at 30 June 2014
(unaudited) 37 161 667 (1 200 268) (25 583 545) 10 377 854 (2 734 618) 7 643 236
Loss for financial year - - (465 377) (465 377) (37 325) (502 702)
Other comprehensive
income - (760 064) - (760 064) 624 580 (135 484)
Total comprehensive
income - (760 064) (465 377) (1 225 441) 587 255 (638 186)
Issue of share capital - - - - - -
Fair value adjustment of
reserve - (12 808) - (12 808) - (12 808)
Value attributed for equity
settled share based
payments - 5 899 - 5 899 - 5 899
Balance at 31 December
2014 (audited) 37 161 667 (1 967 241) (26 048 922) 9 145 504 (2 147 363) 6 998 141
Loss for financial year - - (3 098 379) (3 098 379) (61 010) (3 159 389)
Other comprehensive
income - (249 723) - (249 723) (147 015) (396 738)
Total comprehensive
income - (249 723) (3 098 379) (3 348 102) (208 026) (3 556 127)
Warrants issued 79 192 (79 192) - - - -
Issue of share capital 3 415 755 - - 3 415 755 - 3 415 755
Value attributed for equity
settled share based
payments - - - - - -
Balance at 30 June 2015
(unaudited) 40 656 614 (2 296 156) (29 147 301) 9 213 158 (2 355 389) 6 857 769
CONSOLIDATED CASH FLOW STATEMENT
Six months Six months
ended 30 June ended 30 June
2015 2014
(Unaudited) (Unaudited)
£ £
Cash flows from operating activities
Cash utilised in operations 11 599 (1 110 198)
Finance cost - (316 102)
Tax refund received 662 -
Net cash used in operating activities 12 261 (1 426 300)
Cash flows from investing activities
Purchase of property, plant and equipment (3 934 963) (3 038 223)
Interest income 8 914 21 998
Net cash used in investing activities (3 926 049) (3 016 235)
Cash flows from financing activities
Proceeds on share issue 3 415 755 1 971 123
Proceeds from other financial liabilities - 7 375 446
Net cash from financing activities 3 415 755 9 346 569
Total cash movement for the year (498 033) 4 904 034
Cash at the beginning of the year 2 531 420 2 220 130
Effect of exchange rate movement on cash balances (89 525) 191 149
Total cash at end of the year 1 943 862 7 315 313
NOTES TO THE FINANCIAL STATEMENTS
Six months ended 30 June 2014
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 28 August 2015 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 2014 have been
extracted from the statutory financial statements of DiamondCorp plc.
A copy of the statutory accounts for the year ended 31 December 2014 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.
These interim financial statements have been prepared using the accounting policies set
out in the Group’s 2014 statutory accounts.
Results for the six-month periods ended 30 June 2015 and 30 June 2014 have not been
audited.
The comparative information presented in the income statement has been prepared for
the period 1 January 2014 – 30 June 2014. 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 £3,098,379 for the six months ended 30
June 2015 (30 June 2014: £2,676,238) and on 321,462,540 ordinary shares (30 June
2014: 294,360,041) being the weighted-average number of ordinary shares in issue.
The Group presents an alternative measure of loss per share after excluding all capital
gains and losses from the loss attributable to ordinary shareholders (“Headline earnings
/ (loss)”). Due to there being no adjustments headline loss per share and basic loss per
share is the same.
30 June 2015 30 June 2014
Basic and diluted loss per share (pence) (0.98) (0.91)
Basic and diluted loss per share (Rand) (R0.1882) (R0.6145)
3. SHARE CAPITAL
DiamondCorp plc does not have an authorised share capital, in line with the provisions
of the UK Companies Act 2006. The Directors' authority to issue and allot shares in the
company is set each year by Company's shareholders at the Annual General Meeting.
The level of disapplication in respect of pre-emption authority is determined by the
Company's Nominated Adviser and is based on UK corporate governance guidelines for
AIM companies.
In April 2014, 41,526,000 ordinary shares of 0.5 pence each were issued to current and
new shareholders of the Company, the cost associated with issuance of these shares
has been charged to the share premium account.
In May 2015, 5,000,000 ordinary shares of 0.1 pence were issued to a warrant holder to
exercise warrants over 5,000,000 ordinary shares at an exercise price of 0.9 pence
In June 2015, 31,837,000 ordinary shares of 0.1 pence were issued to current and new
shareholders of the Company, the cost associated with the issuance of these shares has
been charged to the share premium account.
Authorised 30 June 2015 30 June 2014
Ordinary shares 318 365 478 276 839 478
Issue of ordinary shares 36 837 000 41 526 000
355 202 478 318 365 478
Reconciliation of number of shares issued after
reorganisation:
Ordinary shares of 0.1 pence each 355 202 478 318 365 478
Ordinary shares of 2.9 pence each 276 839 478 276 839 478
632 041 956 595 204 478
Issued
Ordinary shares of 0.1 pence each 355 203 318 366
Deferred ordinary shares of 2.9 pence each 8 028 344 8 028 344
Share premium 32 273 067 28 814 957
40 656 614 37 161 667
Contact details:
DiamondCorp plc
Paul Loudon, CEO
Tel: +27 56 216 1300
Euan Worthington, Chairman
Tel: +44 7753 862097
UK Broker & Nomad
Panmure Gordon (UK) Limited
Dominic Morley/Adam James
Tel: +44 20 7886 2500
JSE Sponsor
Sasfin Capital (a division of Sasfin Bank Limited)
Megan Young
Tel: +27 11 445 8068
SA Corporate Advisor
Qinisele Resources Proprietary Limited
Dennis Tucker/Andrew Brady
Tel: +27 11 883 6358
Sponsor
Sasfin Capital (a division of Sasfin Bank Limited)
1 September 2015
Date: 01/09/2015 08:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
Sharenet Sites 
