18 June 2020
Cora Gold Limited ("Cora Gold", "Cora" or "the Company")
US$21m Term Sheet to Fund the Construction of Sanankoro Gold Project, Mali
Cora Gold Limited, the West African focused gold company, is pleased to announce that it has signed a US$21m mandate and term sheet with investment firm, Lionhead Capital Advisors Proprietary Limited ('Lionhead'), to fund the future development of its flagship Sanankoro Gold Project ('Sanankoro' or 'the Project') in Southern Mali (the 'Project Financing'). This is conditional on, among other matters, the completion of a Definitive Feasibility Study ('DFS') on the Project before the end of 2021.
Lionhead is acting as lead investor and arranger on behalf of a consortium of investors including the founders of LionOre Mining International Ltd (which was bought by Norilsk Nickel for US$6.3bn in 2007), as well as the initial investors in Mantra Resources Limited (which was bought by ROSATOM for AUD$1.2bn in 2010). Paul Quirk, a non-executive director of Cora Gold, is a founding partner and director of Lionhead. The Quirk Family are potential beneficiaries of trusts that own around 34% of Cora Gold through Brookstone Business Inc and Key Ventures Holding Limited.
● US$21m Term Sheet to finance the development of Sanankoro on completion of a positive DFS
o US$6m Equity Financing
o US$5m Convertible Loan Note
o US$10m Debt Financing
● Term Sheet requires Cora to deliver a DFS with a minimum of:
o 6 years mine life of 40,000 ozs/year gold production
o 60% Internal Rate of Return ('IRR') based on a US$1,400/oz gold price
● Sanankoro Scoping Study (January 2020, US$1,400/oz gold price) results:
o US$20.6m Pre-Production Capex
o +US$19m/year free cash flow and an 84% IRR
o 45,000 ozs/year average production
● Current focus remains on resource growth with a DFS planned during 2021
Bert Monro, CEO of Cora Gold, said, "The term sheet is fantastic news for Cora and importantly, significantly de-risks the Sanankoro Gold Project. The US$21m Project Financing will fund the Sanankoro Gold Mine based on our Scoping Study economics, following completion of a positive DFS by the end of 2021. This is a very strong endorsement for Sanankoro from an investment group linked with our largest shareholder and a consortium of highly experienced and successful natural resources investors on competitive terms. Sanankoro has the potential to be a highly profitable oxide mine with the Scoping Study highlighting an average free cash flow of US$24mper year and a 107% IRR at a US$1,500/oz gold price.
"With a supportive shareholder base keen to build production, an existing defined resource with significant scope to expand, and a positive gold price environment, we are extremely excited about Cora's future. There is a lot of work still to be done and our team is focussed on delivering on it."
Term Sheet details:
● Equity Financing: US$6m subscription for new ordinary shares of no par value each in Cora at an 8% discount to the 30-day volume weighted average price ('VWAP') at the time of issue post DFS completion (the 'Equity Financing')
● Convertible Financing: US$5m investment in a Convertible Loan Note:
o Coupon: 10% per annum
o Conversion: The total amount outstanding under the Convertible Loan Note (including interest) shall be converted, at the election of Lionhead at any time prior to the 3rd anniversary of the issue of the Convertible Loan Note, into ordinary shares in Cora at a 30% premium to the US$6m Equity Financing price
o Repayment: Repayable on the 3rd anniversary of advance date if not converted, or earlier, at the option of the holder, in the case of: (i) a change of control of Cora; or (ii) the merger or sale of Cora (including the sale of substantially all of the assets of the Company) at a 30% premium to the Equity Financing price. (together, the 'Convertible Loan Note')
● Debt Financing: US$10m debt funding:
o Term: 4 years from advance
o Repayment: Repayable in quarterly instalments commencing at the end of the first quarter following the second anniversary of the advance
o Interest: 10% per annum, payable quarterly in arrears
o NSR: Net Smelter Return Royalty ('NSR') of 1% until 250,000 ozs of gold have been produced from the Project. Cora may purchase and terminate the NSR at any time for US$2m payment.
o Right of First Refusal: If the Company receives an offer from a third party to provide a loan in a similar or amount greater than US$10m, on better terms than provided above, then Lionhead shall have the right to equal the terms offered by the third party. If Cora accepts debt from another party a US$200,000 (2% of Lionhead Debt Financing) fee will be payable to Lionhead. If the mandate agreement terminates, no fee shall be payable if debt is raised 4 months after the termination, (together, the 'Debt Financing')
A fee equal to 1% of the US$21 million Project Financing shall be paid by the Company to Lionhead on completion of the US$6m Equity Financing.
Related Party Transaction
In accordance with the AIM Rules for Companies the Project Financing is deemed to constitute a related party transaction. With the exception of Paul Quirk who is precluded from opining, Cora's directors consider, having consulted with its nominated adviser, that the terms of the proposed Project Financing are fair and reasonable insofar as the Company's shareholders are concerned.
Cora Gold Limited - US$21m TermSheet to Fund Construction of Sanankoro #CORA @cora_gold https://www.voxmarkets.co.uk/rns/announcement/2a62b0ea-0e74-4aa5-9e8d-3e141ffd3d2b #voxmarkets undefined
View attachment 9085
Greatland Gold PLC - Exercise of Options and Director Dealing #GGP @GreatlandGold https://www.voxmarkets.co.uk/rns/announcement/fa5f5cdf-bba8-4d63-9959-798ca353a1a6 #voxmarkets undefined
16 June 2020
EUROPEAN METALS HOLDINGS LIMITED
PRELIMINARY MINING PERMIT AT CINOVEC GRANTED
100% OF CINOVEC ORE RESERVE NOW COVERED BY PMP's
European Metals Holdings Limited ("European Metals" or the "Company") is pleased to advise that the Czech Ministry of the Environment has granted Geomet an updated Preliminary Mining Permit related to the Eastern part of the Cinovec deposit.
The permit has been issued for a period of 8 years. A Preliminary Mining Permit is a necessary legal pre-qualification before obtaining a Final Mining Permit and guarantees the Company the priority right to apply for and obtain a Final Mining Area and a Final Mining Permit.
The approval for the Cinovec-East Preliminary Mining Permit of the deposit covers an area of 0.201 km2 and, together with the existing Preliminary Mining Permits, encompases the entire Cinovec ore reserve with Preliminary Mining Permits. There are three Preliminary Mining Permits issued with medium-term validity periods; Cinovec Northwest and Cinovec-East are valid until 2028 and Cinovec-South until 2025.
The Company intends to amalgamate all three Preliminary Mining Permits into a single Preliminary Mining Permit as a pre-requisite for a single Final Mining Area and Final Mining Permit to simplify the development of the mine.
(Please refer to the announcement on the European Metals website for the graphic of Figure 1: Preliminary Mining Permit - Cinovec Project - www.europeanmet.com.)
European Metals Managing Director Keith Coughlan said, "This PMP renewal confirms the rapid advancement of permitting of the Cinovec Project. There has been a significant increase in the financial and political support for the development of a battery industry in the EU in recent months and a renewed focus on the development of local supply chains. Cinovec is by far the largest hard rock lithium resource in the EU, containing in excess of 65% of the known total resources. This fact, together with the advanced state of the Project, the low cost profile, and the significant support of its major shareholder places the Project ideally to supply battery grade lithium products into the European Battery Industry."
European Metals Hldg - Preliminary Mining Permit at Cinovec Granted #EMH https://www.voxmarkets.co.uk/rns/announcement/9cf02771-86da-49f8-8e7f-0f763b8ef9f5 #voxmarkets undefined
11 June 2020
EUROPEAN METALS HOLDINGS LIMITED
RESPONSE TO VOLUNTARY TENDER OFFER
The Board of European Metals Holdings Limited ("European Metals", "EMH" or "the Company") (ASX & AIM: EMH) has been informed today that Krupa Global Investments a.s. ("Krupa"), together with České Lithium a.s ("Czech Lithium") and partners, has purportedly made a voluntary tender offer to all shareholders in EMH for the acquisition of 29.9% of their shares at a price of 15.5p (or AUD$0.283) per share in cash. EMH has been informed by Krupa that it has made its tender offer announcement through certain media outlets, but so far as EMH is aware, Krupa has not made any announcement through a regulated information service such as RNS, nor to ASX, nor has it published any tender offer document containing detailed terms and conditions. The purported tender offer has been made unilaterally by Krupa and its associates and without prior consultation with EMH.
Shareholders are warned therefore, that before they take any action, they are recommended to seek their own financial advice immediately from an independent financial adviser who specialises in advising on shares or other securities and who is authorised under the Financial Services and Markets Act 2000 (as amended) ("FSMA") or, if not resident in the UK, from another appropriately authorised independent financial adviser in their own jurisdiction.
A copy of Krupa's announcement is set out in the Appendix A to this announcement without material amendment or omission.
European Metals Hldg - Response to Voluntary Tender Offer #EMH https://www.voxmarkets.co.uk/rns/announcement/d97ddcee-c4dc-40b2-83b1-a4bdcb0b6f10 #voxmarkets undefined
11 June 2020
Greatland Gold plc
("Greatland" or "the Company")
Newcrest Reports Further Outstanding Drill Results from Havieron
Initial step out drilling intersects significant mineralisation 220m north west of previous intersections (82.1m @ 2.4 g/t Au, 0.08% Cu from 557.6m, HAD066)
Multiple exceptional results from infill drilling, including 109m @ 6.3g/t Au, 0.71% Cu from 668m (HAD059)
Greatland Gold plc (AIM:GGP), the precious and base metals exploration and development company, is pleased to provide an update on Newcrest's drilling campaign at Greatland's Havieron deposit in the Paterson region of Western Australia.
Greatland notes the release of an ASX announcement titled "Exploration Update" by Newcrest Mining Ltd ("Newcrest") earlier today.
· Exceptional drill results from Havieron further demonstrate improved continuity in the high-grade crescent sulphide zone and extend the strike length of mineralisation to 550 metres in the upper 200 metres of that zone.
· Drilling has also provided further confirmation of the potential for a bulk tonnage target in the adjacent breccia hosted mineralisation.
· Strike extension drilling 220m to the north-west of previous intersections has intersected significant mineralisation (82.1m @ 2.4 g/t Au and 0.08% Cu from 557.6m, HAD066), indicating the potential to expand the high-grade crescent zone.
Best New Results
· HAD057W2: 58m @ 6.2g/t Au, 0.49% Cu from 588m, including
· 10.1m @ 20g/t Au, 0.79% Cu from 631.9m
· HAD059: 109m @ 6.3g/t Au, 0.71% Cu from 668m, including
· 4m @ 78g/t Au, 1.2% Cu from 718m
· HAD059W2: 166m @ 2.8g/t Au, 0.23% Cu from 794m, including
· 29m @ 12g/t Au, 0.19% Cu from 912m
· HAD062: 132.2m @ 4.3g/t Au, 0.49% Cu from 557.8m, including
· 4.5m @ 66g/t Au, 2.6% Cu from 573.5m
· HAD063: 101m @ 4.6g/t Au, 0.36% Cu from 636m, including
· 26.9m @ 16g/t Au, 1.0% Cu from 640.1m
· HAD066 : 82.1m @ 2.4 g/t Au, 0.08% Cu from 557.6m, including
· 1.5m @ 86g/t Au, 0.87% Cu from 586.5m
· HAD071: 45.3m @ 8.9g/t Au, 0.63% Cu from 588.7m, including
· 16.9m @ 20g/t Au, 1.2% Cu from 598.2m
· Nine rigs operational as drilling activity continues towards the objective of delivering a maiden resource in the second half of calendar year 2020.
· Step out drilling programme to test depth and lateral extent of mineralisation continues.
· Newcrest planning approximately 80,000 metres of drilling at Havieron over the next 12 months.
· Environmental and baseline studies progressing to support fast tracking of decline commencement at Havieron by end of calendar year 2020 or early 2021, subject to market and operating conditions and receipt of all necessary permits, consents and approvals.
· Investigating potential to achieve commercial production within two to three years from commencement of decline.
Gervaise Heddle, Chief Executive Officer of Greatland Gold plc, commented: "We are delighted to report the eighth consecutive set of excellent results from Newcrest's drilling campaign at Havieron, including some of the best results to date.
"The crescent zone of high-grade mineralisation has been extended and its continuity once again improved by outstanding infill results. Meanwhile, the extension drilling programme has now commenced and early results are very promising, with step out drill hole (HAD066) intersecting significant mineralisation 220 metres north west of previous high-grade results, and mineralisation remaining open to the north west and at depth.
"These latest results, some of which are truly spectacular, sharpen our collective focus on the near-term objective of a maiden resource at Havieron, and further reinforce the potential to accelerate the timetable for commercial production."
Analytical results for HAD045W2, HAD045W3, HAD045W4, HAD053, HAD054, HAD054W1, HAD054W2, HAD054W3, HAD055, HAD055W2, HAD055W3, HAD056, HAD057, HAD057W1, HAD057W2*, HAD058, HAD059, HAD059W1, HAD059W2*, HAD060, HAD060W1, HAD061, HAD062, HAD063, HAD066*, HAD067, HAD071 have been received and are announced today. Selected significant intercepts are presented in Table 1.
View attachment 9079
In addition to this release, a PDF version of this report, with supplementary information can be found at the Company's website: www.greatlandgold.com/media/jorc/
Greatland Gold PLC - Further Outstanding Drill Results from Havieron #GGP @GreatlandGold https://www.voxmarkets.co.uk/rns/announcement/5f1dc9d5-9052-416b-8dc4-dd16d3bbd793 #voxmarkets undefined
8 June 2020
Xtract Resources Plc
("Xtract" or the "Company")
Audited results for the 12 months ended 31 December 2019
Notice of Annual General Meeting
The Board of Xtract Resources Plc ("Xtract" or the "Company") announces its audited financial results for the 12 months ended 31 December 2019 The 2019 Audited Annual Report and Accounts ("Accounts") have been posted to shareholders and is available, together with this announcement, from the Company's websitewww.xtractresources.com
The Accounts include the notice of annual general meeting ("AGM"). The AGM will be held at 7/8 Kendrick Mews, South Kensington, SW7 3HG on Tuesday 30 June 2020 at 3:00 p.m.
In light of the UK Government's Stay at Home measures to contain COVID-19 (Stay at Home Measures), and utilising the powers given to the Board under Article 62 of the Company's Articles of Association (Articles), shareholders will not be permitted to attend the AGM in person but instead are being asked to cast their votes by proxy in advance of the meeting.
Xtract Resources plc - Final Results and Notice of Annual General Meeting #XTR https://www.voxmarkets.co.uk/rns/announcement/5fd22811-27b3-4fe1-9e15-e61946e75f53 #voxmarkets undefined
· Revenue from gold sales of £1.35m (2018: £0.89 m)
· Administrative and operating expenses of £1.81m (2018: £1.65m)
· Cash of £0.36m (2018: £0.44m)
· Net loss of £1.09m (2018: £0.74m)
· Net assets of £10.78m (2018: £10.71m)
· Collaboration Agreement concluded with Mutapa Mining and Processing LDA for the mining and mineral processing of the Manica hard rock gold deposits in Mozambique
· Additional mining contractor agreement concluded with Huafei Gold Resources for the exploitation of alluvial gold deposits at Manica in Mozambique
· Total alluvial mining contractor gold production of 137.55kg (equivalent to 4,420 ounces) (2018: 187.93kg (equivalent to 6,042 ounces))
· Total of 37.31kg (equivalent to 1,199 ounces) attributable to Explorator (2018: 46.88kg (equivalent to 1,508 ounces))
· Memorandum of Agreement concluded with a consortium to jointly undertake exploration works on the copper / gold small scale mining license 8370-HQ-SML at Kajevu, NW Province in Zambia
· Memorandum of Agreement concluded with KPZ International Ltd to enter into an Option Agreement for the Eureka project on the copper-gold small scale mining licence 22134-HQ-SML in Central Zambia
· Memorandum of Agreement concluded with KPZ International Ltd to act as contractor for the Kalengwa Processing project on the copper large scale mining license 24401-HQ-LEL
· Total of £1 million raised through an equity placing
The period under review has been generally positive with the Company establishing a clear mission to be a small scale mine developer, coupled with quality exploration situations in Mozambique and Zambia and at the time of writing the report the Company has announced a new conditional acquisition in Australia.
During the period, the directors elected to balance small scale production with exploration and also to seek positions in Zambia for both production and exploration since the country has an excellent mining history with a transparent and supportive government.
The Company has elected to focus in all of its activities on copper and gold being exploration or production. The Company announced early February 2019 that it had acquired the Matrix project in Zambia, followed by the acquisition of the Eureka project during early March 2019. Both these projects were drilled during the year and the results are reported in the Operations Report. Whilst the Matrix project did not meet our criteria, the Eureka project proved to be very exciting potentially large-scale project.
The alluvial project in Manica Mozambique, with our Chinese partners and during most of the year Nexus, proved to be challenging with variable production although we achieved a surplus of income over expenditure for every month during the period continuing to the date of writing this report.
We were advised during the first week of December 2019 by our partners Nexus that they wished to terminate the collaboration agreement. This termination was accepted and from the date of the termination our local company Explorator was entitled 100% instead of 50% of the attributable income from the contractual agreement.
At the commencement of this review period, we announced that Huafei Gold Resources Co Limitada were to be appointed as sole contractor for the entire alluvials held in the concession adjacent to the river.
At the time of writing this report, the Company is actively discussing bringing into production an alluvial operation on an additional licence nearby with other contractors. Similarly, we are in discussions to carry out some hard rock mining on areas where gold can be liberated by gravity matters or non-complex leaching. If these discussions are successful there should be a meaningful addition to overall gold production and financial contribution from the Manica project.
On 29 May 2019 we announced an agreement with Mutapa Mining and Processing LDA who had entered into agreement with a nearby owner of a crusher, ball-mill gravity circuit with the plan to advance the plant into a full CIL plant able to handle suitable oretypes which show good amenability to cyanide leaching. We in turn entered into a collaboration agreement to treat suitable ores types within the Manica concession with particular emphasis on the Fairbride deposit. The agreement provides for the Company receiving a 23% direct profit interest provided the gold price stays below US$1,250 per oz. Should the gold price drop below US$1,100, the benefits are reduced to a floor level of 20% against a formula.
On 15 July 2019 we concluded an agreement with KPZ International Limited for the treatment of the secondary material at Kalengwa, which arose as a result of high grade mining operation between 1970 and 1980. The Kalengwa open pit produced approximately 1.9 million tonnes at a grade of 9.4% copper with over 20% of the material grading in excess of 20% copper which was shipped for direct smelting at the then Chibulama operation. The agreement caters for the retreatment of the secondaries which include waste rock and in particular floatation tailings which grade at 1%. The open pit has hard rock extension potential at both extremities and is open to the east. This allows potential for future primary concurrent or sequential mining. We have carried out considerable test work during the period and are now in discussions to develop an operating project for optimum tailings and waste rock retreatment.
Prior to writing this report, the Company announced that it had conditionally acquired a 100% beneficial interest in the Bushranger project in the Lachlan Fold Belt in New South Wales Australia. This acquisition includes a partially explored porphyry which has JORC (2012) compliant inferred resource of some 71 million tonnes at 0.44% copper with 0.064 g/t gold. Drilling indicates that the gold values increase with depth as does the overall copper equivalent. The porphyry is open ended on strike and depth and presents immediate shareholder enhancement potential. In conjunction with the porphyry are a number of epithermal gold targets which have good indications of prospectivity.
Anglo American Corporation have a buy back option at certain levels of discovery or decision to mine. We look forward to advancing this project in the short-term.
The junior resource sector was generally subdued during the period under review with only modest financing taking place and IPO activity reduced to low volumes. This continued to the outbreak of COVID-19 leading to more uncertain times although some secondary financings were achieved during and up to the point of writing this statement. Against an uncertain climate the board are of the opinion that our portfolio is balanced and presents good opportunities for value accretion during the balance of this year and the mid-term.
I would like to take this opportunity to thank my fellow directors and management for their efforts during this difficult but progressive for the Company period.
1 June 2020
W Resources Plc
("W" or the "Company")
Final Results for the Year Ended 31 December 2019
W Resources Plc (AIM:WRES), the tungsten, tin and gold mining company with assets in Spain and Portugal, announces its audited financial results for the year ended 31 December 2019.
La Parrilla, Tungsten and Tin, Spain
· Construction completed on this world class tungsten and tin project in September 2019.
· Initial production of the T2 stage production commenced in November 2019.
· Production in Q4 2019 built at a slower pace than anticipated due to early stage plant challenges, which continue to be resolved.
· Production in Q1 2020 was reported on 17 April 2020, recording an increase in tungsten metal production to 45.2 tonnes (combined tungsten and tin).
· Due to the COVID-19 pandemic, the timing of the €5.3m Grant from the Junta de Extremadura is to be confirmed with the local Government needing to prioritise resources in response to the ongoing pandemic.
Régua Tungsten Project, Portugal
· Régua has significant synergies with La Parrilla as it has materially lower capital costs and will increase La Parrilla's final concentrate production.
· Mining operations commenced in March 2020 and is currently paused due to the challenges presented by COVID-19.
The recent COVID-19 pandemic has meant that 2020 thus far has been a very challenging time for Spain and Portugal as it has for the rest of the world. Our priority has remained the health and safety of our personnel and we continued to work hard at both our operational sites in Spain and Portugal to review and maintain our priorities on this matter in relation to our staff and contractors.
In order to mitigate against risk of further impacts on production as a result of this pandemic, W has secured additional funding to ensure the Company has a strong buffer in these unprecedented times.
Chairman of W, Michael Masterman commented: "Whilst 2019 was a very challenging year with the core priority being completion of the La Parrilla plant and commencement of production and ramp-up, La Parrilla is in operation and is starting to reap the benefits from the substantial plant improvement programme executed over the last 3 months. The bulk of the operational plant improvements have been installed and are now operational. We are of the view that the plant can progressively increase both recoveries and utilisation to increase production to design capacity."
FOR THE YEAR ENDED 31 DECEMBER 2019
W Resources' focus for 2019 was to complete the construction of its world class La Parrilla Tungsten and Tin Project in Spain, which at full production will deliver 2,500tpa of tungsten and is anticipated that this will deliver EBITDA of c.US$20.0m per annum (T2 stage). Construction of the La Parrilla plant was completed in September 2019 and production commenced in late November 2019. La Parrilla, with its large-scale production capacity and low-cost structure will form the base of our cash generation and expansion in the year ahead.
Building a mine of this scale comes with its challenges and whilst the timeline to achieve this was delayed in 2019, the team has worked tirelessly to ensure the best outcome in each phase of development. This is now gaining traction for 2020 as we build towards reaching target production and delivering improved EBITDA in the year ahead.
In this environment of unprecedented market uncertainty, our main priorities in 2020 are to take La Parrilla to design capacity by the end of 2020 and to add an initial stream of tungsten production from our newly opened Régua trial mine to the La Parrilla core production base.
Planning is in place to install ore sorters at La Parrilla to effect an increase in production capacity of the current T2 - 2 million tonne per annum plant. We will gradually take the expansion to T3.5, demonstrating commercial operations in incremental steps prior to substantially expanding production capacity.
COVID-19 and Safety
The recent COVID-19 pandemic has meant that 2020 thus far has been a very challenging time for Spain and Portugal as it has for the rest of the world. Our priority has remained the health and safety of our personnel and we continued to work hard at both our operational sites in Spain and Portugal to review and maintain our priorities on this matter in relation to our staff and contractors. On 14 March 2020, Pedro Sánchez, Spain's Prime Minister, declared a national State of Emergency, which was subsequently updated stipulating with effect from 31 March 2020 that non-essential services, including mining, be closed until Thursday 9 April. The closure of non-essential services which limited operations was subsequently lifted and production at La Parrilla in Spain recommenced, following key works to improve the circuit.
In order to mitigate against risk of further impacts on production as a result of this pandemic, W has secured additional funding to ensure the Company has a strong buffer in these unprecedented times.
Our strong safety performance continues with no Lost Time Injuries during the last 12 months and a total recordable injury frequency rate ("TRIFR") of 16.1 per million hours worked, which is well below the Spanish mining industry average of 45.2. The health and safety of our all employees, contractors and customers remains an absolute priority and we are working hard to ensure we implement all measures necessary to maintain this in the current pandemic.
TUNGSTEN & TIN
La Parrilla - Spain
La Parrilla is a large-scale, low-cost, long-life tungsten and tin project, located approximately 310km southwest of Madrid. It has Australasian Joint Ore Reserves Committee ("JORC") compliant resources totalling 49 million tonnes ("mt") at a grade of 0.1% of tungsten trioxide ("WO3") and JORC compliant reserves of 29.8mt (as shown in Appendix 1 of the Consolidated Financial Statements).
The first phase of the ramp-up is to reach the target to mine 2mtpa of ROM and produce approximately 2,500 tonnes ("t") of tungsten concentrate and 200t of tin ("Sn") concentrate per annum ("T2").
Production at La Parrilla is building, albeit not at the pace we had anticipated due to early stage plant challenges having an impact on production levels for Q1 2020 and the restrictive conditions during the COVID-19 State of Emergency which have necessitated mine and plant closure and operations limitation on equipment sourcing and day-to-day safe personal management which is, of course, our main priority. Significant progress has been made at the plant to address and rectify these challenges, including implementation of 15 plant improvement initiatives at a total cost of €300,000. The improvements are directed at significantly increasing overall recovery and reducing unplanned downtime. We expect to see these changes translate into significantly increased daily and monthly production outcomes.
W RESOURCES PLC
FOR THE YEAR ENDED 31 DECEMBER 2019
The mining and processing operations have expanded in Q1 2020 with key initiatives implemented including construction of a pre-concentrate stockpile area to allow continued operation of the concentrator plant when the jig or crusher plants are down, installation of deslime cyclones ahead of the fines circuit and a hydrosizer ahead of the shaking tables which are complete and operational.
We are mindful that production levels at the start of the year are not where we or our stakeholders expected them to be, however we are still very much in the early stages of the ramp-up and the team is well set to achieve stronger results in the June quarter resulting from plant improvement initiatives implemented in Q1 2020.
The increase in tungsten and tin production demonstrates progress in a very difficult external environment and we remain focussed on the works in hand and are confident of making the solid progress needed in order to reach design capacity.
Notwithstanding these challenges, we are delighted to have completed construction of this impressive large-scale, long-life tungsten and tin project and to now be focussing on the matter in hand of building production at this world class mine.
In March 2018, the Junta de Extremadura in Spain awarded a grant of €5.3m to W's 100% owned subsidiary, Iberian Resources Spain SL. The conditions set, in order to be able to receive the Grant, were a minimum investment in plant and equipment of €16.6m and the creation of at least 20 full time positions. With these conditions successfully met, W provided the documentation to formally apply to receive this Grant. Timing of the Grant is yet to be confirmed with the local Government needing to prioritise resources in response to the ongoing COVID-19 pandemic. The team continues to enjoy strong on-the-ground relationships and appreciates the Government's support.
Tungsten and Tin sales in a challenging global environment
The COVID-19 crisis has created challenges across global tungsten and tin markets in terms of both logistics of delivery and in our customers' market environments. In these market conditions, we continue to sell and deliver all our product to our offtake partners and have broadened our distribution capacity. At times during the peak of the crisis, transportation logistics have been challenging to manage and therefore movement of product has been slower than it has been previously, but in credit to the team we have solved these issues in a timely way.
Importantly the quality of our Tungsten and Tin concentrate consistently meets or exceeds customer offtake requirements and we have seen consistent increases in concentrate quality and, in producing up to 65% WO3 from the plant, we have shown that we are comfortably able to exceed our benchmark grades of 60%.
Régua Tungsten Mine
This high-grade, development-ready tungsten project with low capital cost has a trial mine licence, and an updated JORC compliant mineral resource of 4.47Mt at a grade of 0.27% WO3, including an indicated resource of 3.74mt at a grade of 0.28% WO3, which was completed by Golder Associates Pty Ltd ("Golder") in January 2020.
As W's second mine to come on stream, following the start of production at La Parrilla in November 2019, Régua has significant synergies with La Parrilla as it has materially lower capital costs and will increase La Parrilla's final concentrate production.
Mining operations at Régua commenced early March 2020 with the commencement of mining in the first of two adits with skarn ore zones intersected in the initial development. However, following an extension in Portugal of COVID-19 related restrictions, mining activity has been paused. Plant design and procurement activities are near completion in advance of construction activities which have been rescheduled to later in the year after the COVID-19 crisis has hopefully passed. As a result of the requirement to pause operations, an application to extend the period of the trial mine licence has been submitted to the Portuguese mining authorities.
W RESOURCES PLC
FOR THE YEAR ENDED 31 DECEMBER 2019
With ore haulage and crushing contracts in place with Francisco Pereira Marinho Imãos SA ("FPMI"), once mining recommences later this year, ore from Régua will be hauled 27km to the FPMI crushing plant and crushed to a range of 5-10mm. Importantly, as part of the service contract, FPMI will use the waste ore for rehabilitation of their existing quarry providing local environmental benefits. The estimated crushing and haulage cost is cUS$40-45/mtu and W will pay €50,000 to expand access roads for haulage.
While the development focus has been on Régua we have also applied for a new exploration licence at Tarouca. We expect to be able to tie in operations at Tarouca to the Régua mining and processing operations once the updated licence is granted.
CAA Portalegre - Gold
São Martinho currently has a JORC 2012 gold resource of over 110,000oz. Results from the drilling campaigns in 2017 and 2018 provided a solid base to drive extension drilling with the potential for a materially larger resource.
We have advanced São Martinho through a successful drilling programme and submitted an application for a trial mine and gold production licence in September 2018. Although the COVID-19 crisis and associated state of emergency in Portugal has further delayed the final approval process, we expect the trial mine licence to be granted in due course. The trial mine licence, once granted, will allow W to pursue a drilling programme to expand the resource and resolve the geological interpretations of a flat lying structure (Golder) and a deeply dipping structure (SRK) which have partially arisen due to the combination of structural complexity and multistage mineralising events.
Importantly, a trial mine is a key level of licence tenure and will provide the authority to mine shallow ore and produce gold on a pilot basis. We will actively explore opportunities to bring in Joint Venture parties and monetise the gold discovery in 2020. New expenditure on this project is pending grant of the trial mining licence.
Whilst completion of the new plant at La Parrilla was later than planned, it has remained our priority to ensure W has had a strong buffer of additional financial resources in place to mitigate against the resulting delayed production and also to ensure W remains resilient in the year ahead with the uncertainty created by COVID-19.
In the FY19, the Company secured a €3m loan facility with Caja Rural de Extremadura to provide an advance of funding against the €5.3m grant awarded by the Junta de Extremadura ("Grant"). This loan had an interest rate of 1.75% per annum for a term of 15 months, although subsequent to 31 December, 2019, on 31 January 2020, Iberian Resources Spain S. L. signed a loan agreement for €5m with Banco Santander, S.A ("Santander") which repaid the €3m loan from the Caja Rural de Extremadura. The Santander facility interest rate is 3% per annum, and this loan is now secured by a pledge over the rights to the Grant funds. As stated above, the timing of receipt of the Grant is to be advised by the local Government, which is currently and understandably prioritising its efforts towards coping with the COVID-19 pandemic.
In August 2019, BlackRock Financial Management Inc. ("BlackRock") agreed to capitalise an additional six months of interest payments of the BlackRock term loan, which equated to US$1.29m, and was added to the final loan balance. Furthermore, in December 2019, BlackRock increased its existing loan facility by US$5 million. The additional facility and the roll up of interest (PIK) increased the total outstanding BlackRock loan balance to US$50.5m at 31 March 2020.
During 2019, W raised a total of £2.57m in equity funding. In September, the Company completed a €1m Placing at 0.5p per Ordinary Share, a premium to the share price, from supportive private Spanish investors.
In November 2019, the Company secured a funding package to raise c€2.78m which comprised a first tranche of €1.358m secured through: an equity placement of £289k (€330k) at 0.40p, loans from Directors of £344k (€392k); and Blackrock agreed that an additional 50% of the November interest payment, amounting to US$700k (€636k) could be added to the existing debt facility (PIK - payment in kind). Subsequent to this, in January 2020 the short-term loans provided by three of W's directors were converted into ordinary shares at a price of 0.307p per Ordinary Share.
W RESOURCES PLC
FOR THE YEAR ENDED 31 DECEMBER 2019
As part of the second tranche, the Company completed a Placing to raise £360,000at a price of 0.40p per Ordinary Share to a new Spanish investor in addition to securing a new €500,000 revolving credit facility with leading Spanish Bank; CaixaBank, S.A.
Tungsten and Tin
Tungsten and Tin demand and supply has been disrupted by the COVID-19 crisis.
Given the severity of the crisis, Tungsten prices have been relatively solid and sit at US$215-225, which is 22% down on budget expectations. There have been substantial shutdowns of capacity in China, the world's largest producer of tungsten and as the world economy comes out of the various lockdowns we do expect continued price volatility and a boost in global demand although it is too early to judge the supply/demand balance for the rest of 2020.
Tin prices on the London Metal Exchange started 2020 trading at US$17,125 per metric ton, and moved in an upward trend until January 2020, when the coronavirus outbreak took over news headlines and the price came under pressure. Notably, the market view is that whilst tin plays a pivotal role in all modern technology and has a large role to play in the electric vehicle market, it is the low-cost producers who will continue to reap the benefits due to the unpredictable nature of the COVID-19 pandemic. With a more stable environment, market forecasts expect tin to stabilise in the mid US$20,000 per metric ton. (source: Investing News).
2019 was a very challenging year with the core priority being completion of the La Parrilla plant and commencement of production and ramp-up.
There is no question, however, that the global challenges of 2020 are significantly more difficult, but I believe that our team has responded to them thoughtfully and effectively.
· States of Emergency in both Spain and Portugal have required short-term closures of both La Parrilla and Régua.
· Régua mining and construction operations are currently closed pending confirmation from the Portuguese authorities. We expect to recommence mining in Q3 2020.
· La Parrilla is in operation and is starting to reap the benefits from the substantial plant improvement programme executed over the last 3 months.
· Production on the March quarter was reported on 17 April 2020, recording an increase in tungsten metal production to 45.2 tonnes (combined tungsten and tin).
· During the COVID-19 crisis shut down which came into effect early in June, we have effected substantial improvements in operating capacity which we expect to translate into significant increases in production in the latter stages of the June quarter.
· The bulk of the operational plant improvements have been installed and are now operational. We are of the view that the plant can progressively increase both recoveries and utilisation to increase production to design capacity.
· Stock and commodity market conditions will remain volatile and subject to substantial uncertainty.
The team, with the strong support of the Board, continues to execute development well and this is a credit to the calibre of the management team.
W RESOURCES PLC
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2019
The directors present their strategic report of the company and the group for the year ended 31 December 2019.
REVIEW OF BUSINESS
The results for the year and the financial position of the Group and the Company at the year-end are as shown in the annexed financial statements.
The Group has incurred a loss after tax of €2,942,000 for the year ended 31 December 2019. This is driven by exchange losses of €653,000 on translation of the US dollar denominated BlackRock Financial Management Inc. loan into Euros at 31 December 2019 and finance costs associated with the BlackRock Financial Management Inc. loan of €1,054,000. An operating loss of €1,244,000 was incurred in the year to 31 December 2019, compared to an operating loss of €899,000 for the year to 31 December 2018.
Detailed reviews of activities, business developments and projects are included within the Chairman's Statement.
PRINCIPAL RISKS AND UNCERTAINTIES
The Group uses various financial instruments. These include cash, convertible loans and various other items, such as trade debtors and trade creditors that arise directly from its operations. The main purpose of these financial instruments is to raise finance for the Company's operations.
The existence of these financial instruments exposes the Company to a number of financial risks, which are described in more detail below. The Directors review and agree policies for managing each of these risks and they are summarised below. These policies have remained unchanged from previous years.
The Directors consider that the price of tungsten is an area of potential risk. This is reviewed on a constant basis by the Board and Senior Management.
The Group seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest cash assets safely and profitably.
The Group principally operates in £ and € and has borrowings in US$. It does not currently consider the risk of exposure to be material. As such the Directors do not currently consider it necessary to enter into forward exchange contracts. This situation is monitored on a regular basis.
ON BEHALF OF THE BOARD:
Date: 1 June 2020
W Resources PLC - Final Results #WRES @WResourcesPlc https://www.voxmarkets.co.uk/rns/announcement/de56b066-aa9f-41ba-8243-2281b95d276b #voxmarkets undefined
01 June 2020
Ted Baker Plc ("Ted Baker", the "Company")
Full Year Results for 52 weeks ended 25 January 2020
A detailed strategy and transformation plan for the Company
Ted Baker, the global British Lifestyle brand, today announces its full year results for the year ended 25 January 2020, as well as providing: an update on actions taken to strengthen the business; a transformational strategy "Ted's Growth Formula", to return the Company to profitable growth; a summary of its response to Covid-19 and an update on current trading.
Ted Baker has separately today announced its intention to raise approximately £95 million in gross proceeds (approximately £90 million in net proceeds) by way of a fully underwritten Placing and Open Offer and Firm Placing of the newly-issued ordinary shares of the Company. Up to a further approximately £10 million in gross proceeds (up to approximately £9.6 million in net proceeds) may also be raised by way of an Offer for Subscription which is not underwritten (the "Offer for Subscription", together with the Placing and Open Offer and Firm Placing, the "Capital Raising"). This capital raising will strengthen the balance sheet, allowing the Company to navigate through the COVID-19 disruption and invest in its future through the transformation plan.
Financial Results Overview
View attachment 9054
Total revenue was down 1.4% to £630.5m, (down 2.4% in constant currency) impacted by significant discounting as seen across the apparel industry, particularly in the UK, in response to weak consumer spending and channel shift to online.
o Retail revenues fell 4.6% (fell 5.4% in constant currency) to £439.9m driven by:
§ Store revenues down 5.3% (down 6.3% in constant currency) to £321.2m
§ eCommerce revenues were down 2.5% (down 3.1% in constant currency) to £118.7m
o Wholesale revenues increased by 9.6% (up 8.1% in constant currency) to £171.5m, benefitting from incremental footwear revenue. On a comparable basis (excluding footwear), wholesale revenues decreased 3.7% (decrease of 5.0% in constant currency) due to challenging trading conditions for trustees and territorial franchise partners.
o Licence revenues decreased 14.1% to £19.0m. Underlying licence income increased 1.8%, adjusting for the acquisition of the footwear licence, with a steady growth in both our product and territory licences during the period.
· Underlying gross margin of 55.6% (2019: 59.8%), impacted by increased promotional activity, lower wholesale margin on footwear and an active approach to inventory sell through, partially offset by higher margin on retail footwear sales.
· The 2019 Underlying Gross Margin has not been adjusted since the financial statements of 21 March 2019 and excludes the impact of inventory adjustments. The Group has restated the balance of inventory at 26 January 2019 from £225.8 million to £205.6 million, a £20.2 million restatement. The restatement was due to inappropriate cost values being attributed to inventory, inventory reflected on the balance sheet which did not physically exist and intercompany profit in stock that was not adjusted for in previous calculations.
· In addition, the Group has reviewed its approach to estimating the carrying value of stock and adopted a more prudent methodology which resulted in a £32.4 million reduction in stock value being accounted for as a change in estimate booked as a non-underlying expense in the income statement for the period ended 25 January 2020.
· Underlying profit before tax and IFRS 16 was £9.8m (2019: £63.0m), driven by the combination of gross margin pressure, increased distribution and administrative costs.
· Reported loss before tax was £79.9m (2019: profit of £30.7m), a significant fall versus the prior year due to the Group booking £84.6m of non-underlying expenses, mainly comprising total charges of £45.8m related to inventory, £16.2m related to impairment of store assets, £7.6m related to losses on the disposal of the Asian business and £6.5m for legal and professional costs. In addition, the application of IFRS16 for the first time introduced charges of £5.0m.
The Board recognises that last year's performance was disappointing for all of Ted Baker's stakeholders, reflecting a challenging external environment as well as significant internal disruption, driven by a number of senior leadership departures.
In response, Ted Baker today announces a comprehensive strategy (Ted's Growth Formula) to transform the Company in the coming years and see Ted Baker become a more profitable, cash generative business delivering higher returns on capital employed.
Ted's Growth Formula
This strategy, underpinned by the proceeds from the capital raising, will leverage the inherent strengths of the Company. These strengths are: Ted Baker's strong and resilient brand; its diversified footprint (such as through retail, wholesale and licence channels, product category and geographic presence); combined with substantial historical investments that have been made in the last five years (over £65m invested across IT, CRM, logistics and infrastructure); and a strong culture carried by a passionate and engaged team.
The strategy will build on those strengths and is based on three key building blocks: stabilising the foundations, driving growth, and enhancing operational excellence.
Building Block 1: Stabilise the Company's foundations
The Company's initial focus has been on stabilising the business. These actions, which are largely complete, include:
· Refreshing and strengthening the Company's leadership. The appointment of the new Chair, John Barton; permanent CEO, Rachel Osborne; permanent CFO, David Wolffe; Chief Customer Officer, Jennifer Roebuck; Chief People Officer, Peter Collyer; and Global Creative Director, Anthony Cuthbertson, bring new experience and depth to the Board and the executive team. Ted Baker now has strengthened Board governance and a smaller, focused executive team with clear lines of responsibility.
· Responding effectively to COVID-19. We have taken swift action to protect the business, our customers and our colleagues.
· Recapitalising the business. A restructuring of our debt arrangements, the sale and leaseback of the Company's head office to reduce indebtedness, and the proposed capital raising announced today will ensure the Company can navigate through the current Covid-19 disruption and invest in the transformation plan and future of Ted Baker.
· Management has undertaken a full operational efficiency review, supported by Alix Partners. This will reduce head office costs, both in the UK and North America, and has allowed us to simplify the organisation and reset the business with better ways of working and cost savings. After year end, the Company announced that this reorganisation will achieve £5 million of cost savings for the current financial year, with £2.7 million exceptional cash costs to achieve these savings and will result in £7 million of annualised savings.
· Rethinking Ted Baker's vision and commercial strategy. The strategy can be characterised by the following two building blocks and when delivered, the Company will be more cash generative and produce a higher return on capital employed than in the past.
Building Block 2: Driving Growth
Ted Baker has identified five primary drivers of top line growth to focus on as part of its transformation strategy:
· Attract more customers: Gain higher share of wallet and lifetime value through deeper and broader relationships with new and existing customers, by leveraging of insights, analytics and online engagement, to increase customer acquisition, frequency and conversion online.
· Be 'no ordinary brand': Re-energise the brand and creative direction for all consumer touch points, to increase engagement, awareness and purchase consideration.
· Expand our product and its relevance: Make clothing more relevant to all day / week occasions; drive accessories, footwear and large licence partner categories
· Be forward thinking: Retain relevance of business model; keeping ahead of industry trends through internal R&D function and capability
· Profitably be where the customer is: Reach customers in prioritised territories through the appropriate distribution and service model, in a profitable way.
Building Block 3: Operational Excellence
Going forward, Ted Baker will operate under the core philosophy of 'Simpler, Smarter, Together'. By getting the basics rights and operating more efficiently and collaboratively the Company sees significant scope to improve profitability and cash generation. The Company is focused on creating a digital and data enabled operating model, a high-performance business culture, and a commercial and agile approach. The Company has established a transformation programme team, with proven operational expertise to help support the delivery of these initiatives and achieve the potential benefits.
· Operate with a 'digital first' mentality: Upgrade and enhance IT systems
o Focus on critical systems enablers such as an upgraded e-commerce platform and new payment service provider gateway to enable a much broader set of payment options for customers; enhanced internal systems to improve efficiency; enhanced store and omnichannel service for enhanced insights.
· Create a high performing business culture
o Established three pillars to enhance the team's performance: direction, dynamics and delivery. In future years, the focus will be on developing and embedding capabilities and ways of working as well as a continuous improvement mentality.
· A more commercial and agile business, a more effective organisation
o Scope for significant improvement in gross margin through a series of structural bought-in margin improvements. The Company plans to change how it buys goods (streamlining its critical path and reducing sampling), who it buys from (consolidation of its supplier base) and where it buys from (relocation of sourcing markets). Product margin can be further enhanced through the purchase of products throughout the season in response to customer preferences, reworked margin on outlet products and more sophisticated promotional activity.
o Continued focus on working capital efficiency. Historically, the Company has operated with too much inventory, which has negatively impacted cash flow. Despite improvements in working capital efficiency over the last 12 months (with an improvement in underlying net working capital to sales ratio from 27.5 per cent. to 15.8 per cent.) the Company is highly confident it can achieve a further material improvement through shortening its product lifecycle from three years to two.
o Reduce operating expenditure. The Company's recent cost review concluded the business is carrying high costs in several areas, including logistics and distribution, the head office and stores. As a result, it intends to renegotiate carrier arrangements, reduce requirements for air freight and implement productivity improvements in its Derby and Atlanta Distribution Centres which will further reduce the cost base within the business in addition to the annualised £7 million of cost savings relating to head office costs.
o Improve retail store profitability. The Company has conducted a thorough review of retail stores across all territories, with a critical focus on rental costs and payroll. It has identified significant cost saving potential on store payroll driven by new ways of working; the transformation team is in ongoing discussions with landlords across all territories and Directors remain confident in the Company's ability to reduce rental costs.
Much of the work to achieve operational excellence is considered self-help and the Board is therefore confident in delivering these initiatives without improvement in the retail environment across the Company's markets.
FY21 Guidance and Medium Term Targets
Based on current expectations for the economic outlook, and Ted Baker's performance through and beyond COVID-19 (further detail around the scenarios planned for are included in the separate capital raising announcement, also released today), the Company expects to deliver the following progress in FY21:
· Structural bought-in margin improvement: Consolidation of supplier base from 150+ to 100
· Continued focus on working capital efficiency: Reduce stock cycle from three to two years
· Reduced expenditure: Further central headcount reduction; Limit capex to £15m annually
· Improved retail store profitability: Global payroll costs reduction
· Increased controls: Implementation of new improved control environment; Simplified organisational structure
The Board has also provided financial targets to FY2023 which are:
· Medium-term revenue growth of ~5%
· EBITDA margin of 7% to 10% in FY 2023
· Free cash flow generation, after capex, of at least £30m by FY 2023
· Net debt to EBITDA ratio of 1.0x or less by FY 2023
Current Trading and Response to COVID-19
Current trading has been significantly impacted by COVID-19, but online revenues have been strong, reflecting the resilience of our brand, customer loyalty and recently implemented trading and marketing initiatives.
· Company revenue down 36% for the 14 week period from 26 January 2020 to 2 May 2020 (the "Period"), compared to the same period last year.
· Total retail sales (including online) down 34%
o Retail online channel grew strongly up 50% in the period, up 78% in the 6 weeks from 22 March 2020.
· Wholesale sales for the period down 40%; Licence income for the period down 34% reflecting lockdown measures around the world
Ted Baker's plans for the future build on a number of critical actions that have already been taken by the Board and Leadership Team, particularly in response to COVID-19, in order to protect our customers, our colleagues and the business as a whole.
In addition to an intensive focus on our online business, an extensive cash preservation programme has been put in place, delivering permanent cash flow savings of £138.4m and deferring £10.9m of cash payments:
· The Company has deferred all non-essential capital expenditure, stopping discretionary operating expenses, severely restricting travel, executive pay has been voluntarily reduced by 15%, and landlord and supplier negotiations are ongoing.
· The Company has benefited from the Government's support through the Government's Coronavirus Job Retention Scheme (85% of the workforce is currently on furlough), and Business Rates holiday.
The Company has also started to gradually reopen stores, primarily in Europe and planning for further re-openings is underway as governments begin to relax lockdown rules.
Rachel Osborne, Chief Executive Officer, commented:
"Today we are excited to launch 'Ted's Formula for Growth', a comprehensive strategy for the Ted Baker brand which is supported by a significant recapitalisation of the business, that strengthens our position and enables us to both execute that transformation, and navigate through the disruption caused by COVID-19.
The Ted Baker brand is much loved, it has a unique personality and character built up over many decades, and that provides us with a remarkably strong foundation from which to continue our international growth. Over the past 6 months our new executive team have pulled together and undertaken a thorough review of the business, identified key opportunities and acted decisively in a number of areas. I would like to thank each and every one of our team at Ted Baker for their extraordinary commitment over the past few months and I look forward to working with them to deliver this transformation and the exciting opportunities ahead.
I am confident that our transformation plan will enable us, Ted Baker, to capitalise on our opportunities and deliver value for all of our shareholders."
Investor & Analyst presentation and Q&A:
Management will host an analyst and investor presentation followed by Q&A. This will commence at 9.00 am on 1st June 2020.
Please follow the link below to access the presentation through a webcast, or alternatively use the dial in if you would like to ask a question:
Dial in number: +44 (0)330 336 9411
Confirmation Code: 9714751
Ted Baker PLC - Final Results #TED https://www.voxmarkets.co.uk/rns/announcement/3ad143ad-ad3f-4f5a-a9a7-ab67eaa8422f #voxmarkets undefined
1 June 2020
Sirius Real Estate Limited
("Sirius Real Estate", "Sirius" or the "Company")
Condensed consolidated financial results* for the twelve months ended 31 March 2020
Strong organic rental growth and total shareholder accounting return
Sirius Real Estate, the leading operator of branded business parks providing conventional space and flexible workspace in Germany, today announces condensed consolidated financial results for the twelve months ended 31 March 2020.
• Profit before tax of €110.8 million (FY 2019: €144.7 million)
• Strong like-for-like annualised rent roll increase of 6.1% to €81.2 million (FY 2019: €76.5 million)
• Like-for-like average rental rates increased by 4.1% to €6.07 per sqm (FY 2019: €5.83)
• Funds from operations ("FFO") increased by 15.1% to €55.7 million (FY 2019: €48.4 million)
• Like-for-like book value increased by 9.9% or €96.3 million to €1,069.2 million (FY 2019: €972.9 million)
• NAV per share increased by 8.9% to 77.35c (FY 2019: 71.01c), with EPRA NAV per share of 80.62c (FY 2019: 74.82c)
• Titanium venture with AXA IM - Real Assets completed - €168.0 million seed portfolio transferred from Sirius and first acquisition made in March 2020
• €190.0 million of financial resources generated from completion of Titanium and financing activity
• €120.0 million of acquisitions completed providing a mix of stable income and opportunity
• Average cost of debt reduced to 1.49% and first unsecured debt facility for €50.0 million completed
• Dividend per share of 1.80c in respect of the second half of FY 2020 authorised, giving total dividend for year of 3.57c based on 67% of FFO pay out for the first half and 65% for the second half (FY 2019: 3.36c based on 70% of FFO pay out)
COVID-19 UPDATE AND OUTLOOK
• April collections within 98.8% of normal working practice and May collections in line with April
• Enquiries continuing at normal levels of a monthly average of c.1,200
• 130 new lettings in May 2020 covering 11,282 sqm (April 2020: 119 lettings/8,166 sqm)
• Of €6.8 million of annual income (108,000 sqm) up for renewal in Apr/May 2020, 74% have renewed (April/May 2019: €7.4 million (125,000 sqm) 74%)
• Less than 10% of on-site business park employees working remotely since Monday 11 May
• Employees working at head office gradually increased to 50%
• Sirius will continue to use its platform across Germany to work with tenants throughout the current 'back to work' phae of the COVID-19 pandemic
• In light of the on-going uncertainty with regards to the impact of COVID-19 in the current financial year, the Board does not consider it prudent to provide full year financial guidance but will continue to monitor the situation and update the market in due course
• The Board remains confident that the Company is well placed to meet the challenges ahead and continue to deliver attractive and sustainable returns for shareholders in the future
Andrew Coombs, Chief Executive Officer of Sirius Real Estate, said: "It's good to be reporting another successful year, having achieved our sixth consecutive year of greater than 5 per cent annual organic growth in our rent roll and 15 per cent growth in funds from operations, our key measure of operational performance.
"While we look to the future with caution, due to the uncertainties created by COVID-19, I believe the Company is well placed to endure the economic difficulties being created by the crisis and also take advantage of opportunities with our strong balance sheet. We remain focused on delivering attractive risk-adjusted returns by way of active asset management throughout the property cycle. With our significant cash resources available to make acquisitions, further vacancy to develop and reversion potential to capture, Sirius is well positioned to meet the challenges ahead.
"We've acquired a further €120 million of additional assets, increasing our presence in our target cities, from which we are confident of extracting significant value by playing to the strengths of our integrated business model and track record of maximising occupation and growing rental levels.
"Taking advantage of the favourable lending conditions during the year, we optimised our capital structure with a number of initiatives that have resulted in a reduction of our average cost of debt to 1.5 per cent from 2.0 per cent."
* Referred to as preliminary consolidated financial results for the purpose of the JSE Listing Requirements.
A conference call for analysts/investors will be held at 09:00 (BST)/10:00 (CET/SA), today. If you wish to dial-in, the details are:
Participant access code (for all participants): 29535232#
UK Dial-In: Toll-Free: 0800 358 9473 / Toll: +44 333 300 0804
Germany Dial-In: Toll-Free: 0800 627 0729 / Toll: +49 6913803430
All other countries: http://events.arkadin.com/ev/docs/NE_W2_TF_Events_International_Access_List.pdf
The presentation will be available for participants at: https://www.anywhereconference.com?Conference=301323391&PIN=29535232&UserAudioMode=DATA
This is my second annual report as Chairman and I am delighted to be able to share another period of operational and strategic success for the business, with results for the period in line with market expectations.
There were two very notable milestones in the period. In September 2019 the Company entered the FTSE 250 for the first time and in July 2019 successfully completed the Titanium venture with AXA Investment Managers - Real Assets. The entry into the FTSE 250 is testament to Sirius' long-standing leadership team and the successful execution of the core strategy. Titanium further demonstrates the external recognition of the professionalism and expertise to be found at Sirius.
It is already clear that the year ahead is going to be more challenging than the previous period. We face a time of uncertainty as governments, businesses and societies across the world grapple with the challenge that Covid-19 presents and this is already having an impact on the market in which we operate. At the time of writing the German state appears to be managing the crisis more effectively than most although it remains to be seen how significant any economic downturn might be.
Nevertheless, the Company is well positioned to manage through the economic headwinds with a strong balance sheet and undrawn debt facilities available. As we enter a new financial year we are well placed to meet the challenges ahead, and remain confident that we will continue to deliver attractive and sustainable returns for shareholders in the future.
Executing the strategy
The core strategy continues to focus on the acquisition of business parks in Germany which have either attractive yields, value-add potential, or both. Sirius transforms these business parks into higher-quality assets through investment and intensive asset management. Once sites are mature and net income and values have been optimised, Sirius may then refinance the sites to release capital for investment in new sites or consider the disposal of sites in order to recycle equity into assets which present greater opportunity to deploy the Sirius team's asset management skills. The capex investment programmes upgrade and transform space that would often be considered as structural void and, in doing so, aim to deliver excellent returns by growing income and capital values.
The primary focus remains on Germany's seven largest cities: Berlin, Hamburg, Düsseldorf, Cologne, Frankfurt, Stuttgart and Munich, with a secondary focus on a selection of key border towns such as Aachen, Saarbrücken and Freiburg. Sirius seeks mixed-use properties, primarily light industrial units, business parks or office buildings outside city centres, or on the edge of towns, in neighbourhoods which have a high density of commercial and industrial activity and good transport links. The Company has over 5,000 tenants across the 57 properties that it owns and approximately a further 500 through the 6 parks owned by Titanium and managed by Sirius.
The Company's stated policy is to pay out 65% of the Group's funds from operations ("FFO") to shareholders as dividends but, as has happened previously, the Board will consider higher pay-out ratios in order to maintain the positive dividend growth that would have been achieved had it not been for the asset recycling and equity raising activities. Absent such circumstances, the Board has authorised a dividend in respect of the second half of the financial year ended 31 March 2020 of 1.80c per share representing 65% of FFO, an increase of 4.0% on the equivalent dividend last year, which represented 70% of FFO. The total dividend for the year is 3.57c, an increase of 6.3% on the 3.36c total dividend for the year ended 31 March 2019. The Group has not received any direct state financial assistance in connection with the Covid-19 crisis.
The Sirius business model continues to deliver not only progressive income returns but also attractive capital growth as measured by adjusted net asset value ("adjusted NAV") per share. Combining the growth in adjusted NAV which excludes deferred tax and derivative financial instruments, and dividends paid, the Company has delivered an annual total shareholder accounting return in excess of 13.1% for the year to 31 March 2020. While dividend distributions have typically contributed approximately 30% and adjusted NAV growth 70% of these returns, it is pleasing to note that the valuation movement of our investment properties is derived predominantly from organic increases in income rather than yield movement. This focus on growing income at property level positions the Company well for the future.
Creating sustainable impact and long-term social and financial value is at the heart of Sirius' Company purpose. Both the Board and Management Team know that to achieve this the Group needs to unlock the potential of its people, its properties and the communities in which it operates. We know that long-term economic success comes hand-in-hand with positively impacting social, environmental and ethical sustainability.
As a real estate company with a large physical footprint, we understand our role in the collective approach to environmental challenges. Fundamentally, our business is built on the recycling of spaces. By refurbishing and revitalising older buildings to fit modern needs and environmental standards, we generate fewer emissions and use less material than firms which create new buildings from scratch.
Our environmental sustainability strategy extends to our resource footprint too, and we are proud that the carbon emissions from across our business are lower than the national average and that we source over 85% of our own energy from renewable sources, significantly above the German average of 38%. In spite of the already high input from renewable sources, we will continue to strive for further improvements. Our Mannheim II business park is a good example of what is possible. Mannheim operates with 100% renewable energy and is a great example of what we can achieve together with our tenants when both parties focus on sustainability.
Coupled with our commitment to sustainable spaces, I am also proud that the Company truly puts people at the heart of its operations. Sirius is supporting local communities across Germany, whether through contributing to local charities, sponsoring local sports teams, or encouraging colleagues to volunteer for causes they feel strongly about. Critically, our model of refurbishing and revitalising buildings brings renewed energy to neighbourhoods and communities in towns in Germany that are typically on the outskirts of Germany's largest cities, where we can make more of a difference.
Governance and culture
We welcome Caroline Britton and Kelly Cleveland to the Board as independent Non-Executive Directors, who will join us on 1 June 2020. Both will present themselves for election by shareholders at the 2020 AGM. Justin Atkinson and Jill May will step down from the Board at the close of the 2020 AGM, enabling them to focus on their various roles and further opportunities with other organisations. The Board is very grateful for the expertise they brought to us during a time of significant change. Further information relating to these Board changes is provided in the Corporate governance report and in the Nomination Committee report in the Report and Accounts 2020.
The Board is fully committed to compliance with the UK Corporate Governance Code (the "2018 Code") as published in July 2018 by the Financial Reporting Council. Under a dispensation issued by the Johannesburg Stock Exchange, the Company is not required to apply the King IV Code on Governance™ for South Africa 2016. A detailed description of our governance and leadership arrangements, and how we have complied with the principles and provisions of the 2018 Code, is provided in the Corporate governance report in the Report and Accounts 2020. This includes a new section which explains the link between the Board's decision-making and the Group's purpose and strategy, as well how stakeholder interests and the other matters set out in section 172 of the UK Companies Act 2006 have been considered in the Board's discussions and decision making.
Thank you and outlook
On behalf of the Board I would like to thank all those connected to Sirius for their efforts and hard work that has together allowed the Company to record such an impressive year yet again.
As we enter the next period, Sirius is well placed to meet the challenges of Covid-19 which are described in more detail in the Annual Report and Accounts 2020 and will continue to focus on improving the assets that it owns and manages, as well as seeking new opportunities as we expect will arise. The Company completed the financial year with a strong balance sheet supported by total unrestricted cash balances and undrawn facilities of €129.7 million and saw positive rent and service charge income collection results for April and May. This positions the Company well into the new financial year and beyond.
29 May 2020
Sirius Real Estate - Final Results #SRE https://www.voxmarkets.co.uk/rns/announcement/59d90355-3f25-4e2b-9c62-38e9198a73dc #voxmarkets undefined
26 May 2020
KIZILTEPE QUARTERLY OPERATIONAL UPDATE
Ariana Resources plc ("Ariana" or "the Company"), the AIM-listed exploration and development company operating in Europe, is pleased to announce its operating results for the quarter ended 31 March 2020 for the Kiziltepe Mine ("Kiziltepe" or "the Project") in Turkey. Kiziltepe is part of the Red Rabbit Joint Venture ("JV") with Proccea Construction Co., and is 50% owned by Ariana through its shareholding in Zenit Madencilik San. ve Tic. A.S. ("Zenit").
· Gross quarterly income of US$8.84 million at an average realised gold price of US$1,599 per ounce, against an average revenue per gold ounce of US$1,724 (due to silver credit)*.
· Production and sale of 5,129 ounces of gold during the quarter ending 31 March 2020.
· Operating cash costs for the quarter are estimated at US$533 per ounce#.
· 31,421 ounces of silver was not sold during the period due to adverse price conditions and has been retained in stock.
· Operational mill availability running at 99% and utilisation at 99% during March.
· 53,840 tonnes ore milled during the period ending 31 March 2020 at an average head grade of 3.22 g/t Au.
· Process recovery of gold remains high at 92.5%.
· Kiziltepe Mine currently remains on track to deliver on the 2020 production target of 18,000 ounces of gold.
Dr. Kerim Sener, Managing Director, commented:
"Production during the first quarter of 2020 has provided another pleasing result, which was delivered in part during the current pandemic. Our business, being considered an essential industry, was allowed to continue and operations remain largely unaffected despite the introduction of various risk mitigation procedures at the mine site and an overall reduction of active staff levels. Indeed, our operations in to the current quarter are continuing in accordance with the mine plan.
"It is also important to note that the average monthly production from Kiziltepe during Q1 and in to the current quarter is currently running above target. This is in part due to higher material movements and the consequent accessibility of optimal grade ore feed throughout the period. Assuming production is able to continue uninterrupted through the current quarter, we remain on track to deliver on our production target for the year."
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.
· Production of ore from the open-pits achieved an average rate of 30,827 tonnes per month over the period, with a peak rate of over 31,891 tonnes achieved in February.
· Operations in the Arzu North and Derya areas are continuing as planned, with mining undertaken primarily from Arzu North during the period.
· Following the repayment of the US$33 million construction capital loan to Turkiye Finans Katilim Bankasi A.S., the JV is largely free of debt but maintains a separate working capital loan balance with the bank of approximately US$8.5 million which is expected to be repaid in full by October 2021.
* All production figures are quoted gross with respect to the JV in this announcement.
# Operating cash costs are inclusive of on-site costs and off-site charges and royalties specific to the project. It also includes adjustments for stockpile balances at the end of each quarter, in addition to an adjustment for by-product silver. They exclude finance costs, taxes and development capital. The definition used to derive the cash costs is essentially the same as that used within the feasibility study. This cash cost was calculated based on unaudited figures obtained from Zenit.
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Ariana Resources PLC - KIZILTEPE QUARTERLY OPERATIONAL UPDATE #AAU @ArianaResources https://www.voxmarkets.co.uk/rns/announcement/6d36ebb9-12e0-4f61-8911-87e02ffa2159 #voxmarkets undefined