TIDMLMY
RNS Number : 1035D
Lithic Metals and Energy Limited
26 November 2009
Lithic Metals and Energy Limited
("Lithic" or the Company")
Interim results for the 6 months ended 30 September 2009
Lithic (AIM code: LMY), the AIM-quoted African nickel and uranium exploration
company, today announces its interim results for the six months ended
30th September 2009.
Directors' report
I have pleasure in presenting the unaudited interim financial statements of
Lithic for the six months ended 30 September 2009.
Market conditions have been particularly challenging over recent months and
following shareholder pressure for a change in strategy, a new Board was
appointed at a Special General Meeting convened in July this year and a
strategic review of the business was immediately announced. Whilst this has been
ongoing, the Company has significantly reduced its exploration expenditure
across all assets.
On 29 October 2009 the Company announced the intention to acquire the entire
issued capital of Amber Petroleum Limited, a private company incorporated in the
British Virgin Islands whose focus is on investment in junior uranium mining and
exploration companies. On the same day trading in the Company's shares on the
London Stock Exchange was suspended.
It is anticipated that the Acquisition, and the New Business Strategy and as a
result of this an increase in the authorised capital of the Company will be put
before a Special General Meeting (SGM) to be convened in due course. It is
anticipated that the SGM will approve the completion of the transaction and
admission of the enlarged share capital of the Company to be admitted to AIM
before 31 December 2009.
The board is committed to creating an International mining and exploration group
focused on acquiring and developing resource projects, in particular uranium and
nickel assets. The Acquisition of Amber Petroleum Limited is an integral part of
this strategy. The Board look forward to providing additional updates in due
course.
Financial Information
The Company and it subsidiaries report a deficit after tax for the half year
ended 30 September 2009 of GBP586,073 (compared to a deficit of GBP305,977 for
the six months ended 30 September 2008).
No dividend was paid or declared during the period.
The basic deficit and diluted deficit per share for the period was 0.46 pence
(30 September 2008: 0.20 pence).
For more information please contact:
+---------------------------+---------------------------+---------------------------+
| David Weill | Nicola Marrin/Catherine | Laurence Reed |
| | Leftley | |
+---------------------------+---------------------------+---------------------------+
| Lithic Metals & Energy | Seymour Pierce | Threadneedle |
| Ltd | | Communications |
+---------------------------+---------------------------+---------------------------+
| Tel: +44 (0) 207 881 0180 | Tel: +44 (0) 207 107 8000 | Tel: +44 (0) 20 7936 9696 |
+---------------------------+---------------------------+---------------------------+
Condensed Consolidated Statement of Comprehensive Income
For the six months ended 30 September 2009
+---------------------------------------+------+------------+--+---------------+--+-------------+
| | Note | Unaudited | | Unaudited six | | Audited |
| | | six months | | months ended | | year |
| | | ended | | | | ended |
+---------------------------------------+------+------------+--+---------------+--+-------------+
| | | September | | September | | March |
| | | 2009 | | 2008 | | 2009 |
+---------------------------------------+------+------------+--+---------------+--+-------------+
| | | GBP | | GBP | | GBP |
+---------------------------------------+------+------------+--+---------------+--+-------------+
| Total revenue | 3 | 28,268 | | 222,982 | | 310,082 |
| Impairment charge | 3 | (565) | | - | | (1,982,193) |
| Other expenses | | (613,776) | | (528,959) | | (930,527) |
+---------------------------------------+------+------------+--+---------------+--+-------------+
| Deficit before income tax | | (586,073) | | (305,977) | | (2,602,638) |
+---------------------------------------+------+------------+--+---------------+--+-------------+
| Deficit before and after tax for the | | (586,073) | | (305,977) | | (2,602,638) |
| half-year | | | | | | |
+---------------------------------------+------+------------+--+---------------+--+-------------+
| | | | | | | |
+---------------------------------------+------+------------+--+---------------+--+-------------+
| Other comprehensive income: | | | | | | |
+---------------------------------------+------+------------+--+---------------+--+-------------+
| Exchange differences on translation | | 36,886 | | 158,570 | | 798,969 |
| of foreign entities | | | | | | |
+---------------------------------------+------+------------+--+---------------+--+-------------+
| Income tax effect | | - | | - | | - |
+---------------------------------------+------+------------+--+---------------+--+-------------+
| Total other comprehensive income | | 36,886 | | 158,570 | | 798,969 |
+---------------------------------------+------+------------+--+---------------+--+-------------+
| | | | | | | |
+---------------------------------------+------+------------+--+---------------+--+-------------+
| TOTAL COMPREHENSIVE INCOME/(DEFICIT) | | (549,187) | | (147,407) | | (1,803,669) |
| - attributable to owners | | | | | | |
+---------------------------------------+------+------------+--+---------------+--+-------------+
| | | | | | | |
+---------------------------------------+------+------------+--+---------------+--+-------------+
| | | | | | | |
+---------------------------------------+------+------------+--+---------------+--+-------------+
| Earnings per share: | | | | | | |
+---------------------------------------+------+------------+--+---------------+--+-------------+
| - Basic and diluted deficit per share | 4 | (0.46) | | (0.20) | | (1.78) |
| (pence) | | | | | | |
+---------------------------------------+------+------------+--+---------------+--+-------------+
Condensed Consolidated Statement of Cash Flows
for the six months ended 30 September 2009
+----------------------------------------------+-------------+--+------+------------+--+-------------+
| | Unaudited | | Unaudited | | Audited |
| | six months | | six months | | Year |
| | ended | | ended | | ended |
+----------------------------------------------+-------------+---------+------------+--+-------------+
| | September | | September | | March |
| | 2009 | | 2008 | | 2009 |
+----------------------------------------------+-------------+---------+------------+--+-------------+
| | GBP | | GBP | | GBP |
+----------------------------------------------+-------------+---------+------------+--+-------------+
| Cash flows from operating activities | (528,839) | | (534,578) | | (744,431) |
| Payments to suppliers and employees | 2,499 | | 99,690 | | 122,434 |
| Interest received | - | | 122,893 | | - |
| Management fee received | | | | | |
+----------------------------------------------+-------------+--+-------------------+--+-------------+
| Net cash utilised by operating activities | (526,340) | | (311,995) | | (621,997) |
+----------------------------------------------+-------------+--+-------------------+--+-------------+
| Cash flows from investing activities | (4,011) | | (541,301) | | (1,126,237) |
| Payments for mineral exploration activities | (84,697) | | (886,213) | | (1,317,281) |
| Payments for business development projects | - | | (156,662) | | (142,988) |
| Payments for property, plant and equipment | - | | - | | 4,706 |
| Proceeds from Insurers and on sale of assets | | | | | |
+----------------------------------------------+-------------+--+-------------------+--+-------------+
| Net cash utilised by investing activities | (88,708) | | (1,584,176) | | (2,581,800) |
+----------------------------------------------+-------------+--+-------------------+--+-------------+
| Cash flows from financing activities | - | | - | | (153,100) |
| Share issue costs | | | | | |
+----------------------------------------------+-------------+--+-------------------+--+-------------+
| Net cash generated from financing activities | - | | - | | (153,100) |
+----------------------------------------------+-------------+--+-------------------+--+-------------+
| | | | | | |
+----------------------------------------------+-------------+--+-------------------+--+-------------+
| Net increase/(decrease) in cash and cash | (615,048) | | (1,896,171) | | (3,356,897) |
| equivalents | 1,563,912 | | 4,920,809 | | 4,920,809 |
| Cash and cash equivalents at beginning of | | | | | |
| the period | | | | | |
+----------------------------------------------+-------------+--+-------------------+--+-------------+
| Cash and cash equivalents at end of the year | 948,864 | | 3,024,638 | | 1,563,912 |
| - (Note 7) | | | | | |
+----------------------------------------------+-------------+--+------+------------+--+-------------+
Condensed Consolidated Statement of Financial Position
at 30 September 2009
+----------------------------------+------+-------------+--+-------------+--+-------------+
| | Note | Unaudited | | Unaudited | | Audited |
+----------------------------------+------+-------------+--+-------------+--+-------------+
| | | September | | September | | March 2009 |
| | | 2009 | | 2008 | | |
+----------------------------------+------+-------------+--+-------------+--+-------------+
| | | GBP | | GBP | | GBP |
+----------------------------------+------+-------------+--+-------------+--+-------------+
| ASSETS | | | | | | |
+----------------------------------+------+-------------+--+-------------+--+-------------+
| Non-current assets | 5 | 206,056 | | 288,824 | | 294,443 |
| Property, plant and equipment | 6 | 2,936,020 | | 3,724,883 | | 2,932,009 |
| Mineral properties | | 1,722,626 | | 1,126,067 | | 1,522,120 |
| Other assets | | | | | | |
+----------------------------------+------+-------------+--+-------------+--+-------------+
| Total non current assets | | 4,864,702 | | 5,139,774 | | 4,748,572 |
+----------------------------------+------+-------------+--+-------------+--+-------------+
| Current assets | 7 | 87,278 | | 130,620 | | 137,997 |
| Trade and other receivables | | 85,032 | | 133,321 | | 50,148 |
| Prepayments | | 948,864 | | 3,024,638 | | 1,563,912 |
| Cash and cash equivalents | | | | | | |
+----------------------------------+------+-------------+--+-------------+--+-------------+
| Total current assets | | 1,121,174 | | 3,288,579 | | 1,752,057 |
+----------------------------------+------+-------------+--+-------------+--+-------------+
| Total assets | | 5,985,876 | | 8,428,353 | | 6,500,629 |
+----------------------------------+------+-------------+--+-------------+--+-------------+
| EQUITY AND LIABILITIES | | | | | | |
+----------------------------------+------+-------------+--+-------------+--+-------------+
| Current liabilities | | 224,931 | | 317,000 | | 169,699 |
| Trade and other payables | | 9,896 | | 36,370 | | 41,248 |
| Provisions | | | | | | |
+----------------------------------+------+-------------+--+-------------+--+-------------+
| Total liabilities | | 234,827 | | 353,370 | | 210,947 |
+----------------------------------+------+-------------+--+-------------+--+-------------+
| Equity | 9 | 1,262,972 | | 1,522,972 | | 1,392,972 |
| Issued capital | 9 | 7,815,178 | | 7,838,278 | | 7,815,178 |
| Share premium account | 10 | 295,899 | | 272,492 | | 285,346 |
| Options and Warrants Reserve | 10 | 795,040 | | 113,251 | | 758,153 |
| Foreign currency translation | 10 | (4,418,040) | | (1,672,010) | | (3,961,967) |
| reserve | | | | | | |
| Accumulated deficit | | | | | | |
+----------------------------------+------+-------------+--+-------------+--+-------------+
| Total equity | 5,751,049 | | 8,074,983 | | 6,289,682 |
+-----------------------------------------+-------------+--+-------------+--+-------------+
| Total equity and liabilities | 5,985,876 | | 8,428,353 | | 6,500,629 |
+----------------------------------+------+-------------+--+-------------+--+-------------+
Condensed Statement of Changes in Equity
for the six months ended 30 September 2009
+--------------------------------------------------+-----------+-------------+
| | | |
+--------------------------------------------------+-----------+-------------+
| | | GBP |
+--------------------------------------------------+-----------+-------------+
| Issued Capital | | |
+--------------------------------------------------+-----------+-------------+
| Opening balance as at 1 April 2008 | | 1,522,972 |
+--------------------------------------------------+-----------+-------------+
| Issued during the period | | - |
+--------------------------------------------------+-----------+-------------+
| Closing balance as at 30 September 2008 | | 1,522,972 |
+--------------------------------------------------+-----------+-------------+
| Share buy-back | | (130,000) |
| Closing balance as at 31 March 2009 | | 1,392,972 |
| Additional transfer on share buy-back | | (130,000) |
| Closing balance as at 30 September 2009 | | 1,262,972 |
| | | |
+--------------------------------------------------+-----------+-------------+
| Share Premium Reserve | | |
+--------------------------------------------------+-----------+-------------+
| Opening balance as at 1 April 2008 | | 7,838,278 |
+--------------------------------------------------+-----------+-------------+
| Premium on shares issued during the period | | - |
+--------------------------------------------------+-----------+-------------+
| Closing balance as at 30 September 2008 | | 7,838,278 |
+--------------------------------------------------+-----------+-------------+
| Share buy-back during year | | (23,100 |
| Closing balance as at 31 March 2009 and 30 | | 7,815,178 |
| September 2009 | | |
+--------------------------------------------------+-----------+-------------+
| Options & Warrants Reserve | | |
+--------------------------------------------------+-----------+-------------+
| Opening balance as at 1 April 2008 | | 180,821 |
+--------------------------------------------------+-----------+-------------+
| Recognition of share-based payments | | 91,671 |
+--------------------------------------------------+-----------+-------------+
| Closing balance as at 30 September 2008 | | 272,492 |
+--------------------------------------------------+-----------+-------------+
| Recognition of share-based payments | | 12,854 |
| Closing balance as at 31 March 2009 | | 285,346 |
| Recognition of share-based payments | | 10,553 |
| Closing balance as at 30 September 2009 | | 295,899 |
+--------------------------------------------------+-----------+-------------+
| Accumulated Deficit | | |
+--------------------------------------------------+-----------+-------------+
| Opening balance as at 1 April 2008 | | (1,366,033) |
| Deficit for the period | | (305,977) |
+--------------------------------------------------+-----------+-------------+
| Closing balance as at 30 September 2008 | | (1,672,010) |
+--------------------------------------------------+-----------+-------------+
| Deficit for the period | | (2,289,957) |
| Closing balance as at 31 March 2009 | | (3,961,967) |
| Deficit for the period | | (586,073) |
| Reserve movement on share buy-back | | 130,000 |
| Closing balance as at 30 September 2009 | | (4,418,040) |
| | | |
+--------------------------------------------------+-----------+-------------+
| Foreign Currency Translation Reserve | | |
+--------------------------------------------------+-----------+-------------+
| Opening balance as at 1 April 2008 | | (40,816) |
+--------------------------------------------------+-----------+-------------+
| Exchange differences arising on translation of | | 154,067 |
| foreign operations | | |
+--------------------------------------------------+-----------+-------------+
| Closing balance as at 30 September 2008 | | 113,251 |
| Exchange differences arising on translation of | | 644,902 |
| foreign operations | | 758,153 |
| Closing balance as at 31 March 2009 | | 36,887 |
| Exchange differences arising on translation of | | 795,040 |
| foreign operations | | |
| Closing balance as at 30 September 2009 | | |
| | | |
+--------------------------------------------------+-----------+-------------+
| | | |
+--------------------------------------------------+-----------+-------------+
| Total of shareholders equity at 30 September | | 5,751,049 |
| 2009 | | |
+--------------------------------------------------+-----------+-------------+
Selected Explanatory Notes to the Interim Financial Statements
1. Key accounting policies
Lithic Metals and Energy Limited (hereafter "Lithic" or the "Company") is a
company registered and domiciled in Bermuda whose principal activities comprise
minerals exploration and development for the benefit of shareholders.
The Company's registered office is:
Canon's Court
2 Victoria Street
Hamilton HM 12
Bermuda
The financial statements incorporate the principal accounting policies as set
out in the annual financial statements to 31 March 2009, a selection of which
are set out below. Accounting policies of the subsidiaries are consistent with
those of the holding company.
Statement of compliance
The Group's annual financial statements are prepared in accordance with
International Financial Reporting Standards (IFRS) adopted by the International
Accounting Standards Board (IASB) and interpretations issued by the
International Financial Reporting Interpretations Committee of the IASB. These
interim financial statements are prepared in accordance with IAS34 'Interim
Financial Reporting'.
Basis of preparation
The Group financial statements are prepared on the historical cost basis. Cost
is based on the fair values of the consideration given in exchange for assets.
All amounts are presented in Pounds Sterling, unless otherwise noted.
The preparation of IFRS financial statements requires the use of certain
critical accounting estimates and requires management to exercise a higher
degree of judgement in the process of applying the Group's accounting policies.
Significant estimates used in the preparation of these consolidated financial
statements include, amongst other things, plant and equipment, the expected
economic lives of and the future operating results and net cash flows expected
to result from the utilization of resource properties and the estimated values
of options. Actual results may differ from those estimates.
Going concern
The financial statements have been prepared on the basis that the consolidated
entity is a going concern, which contemplates the continuity of normal business
activity, realisation of assets and the settlement of liabilities in the normal
course of business. If the consolidated entity chooses to maintain its current
high level of expenditure on specific projects, it will have to raise additional
capital. If the consolidated entity does not raise additional capital in the
short term it can continue as a going concern by substantially reducing
exploration expenditure until funding is available, without jeopardising its
commitment base on those specific projects. The consolidated entity always has
the opportunity to enter into joint venture arrangements to fulfil ongoing
exploration expenditure or apply for expenditure exemptions. The Directors are
of the opinion that the basis upon which the financial statements are prepared
is appropriate in the circumstances. However, if an event were to arise where
the consolidated entity could not raise additional equity capital or reduce its
current rate of exploration expenditure by entering into joint ventures in order
to remain as a going concern, there is no certainty as to whether the
consolidated entity could realise assets at the amounts as shown in the
financial statements and extinguish liabilities in the normal course of
business.
Principles of consolidation
a) Subsidiaries
The consolidated financial statements incorporate the assets and liabilities of
Lithic and its subsidiaries (hereafter the "Group" or "Consolidated Entity") as
at 30 September 2009, and the results of its subsidiaries for the six month
period then ended. Subsidiaries are those entities over which the Group has the
power to govern the financial and operating policies, generally accompanying a
shareholding of more than fifty percent of the voting rights so as to obtain
benefits from its activities. The existing and effect of potential voting rights
which are currently exercisable or convertible are considered when assessing
whether the Group controls another entity.
Subsidiaries are fully consolidated from the date on which control is
transferred to the Group. They are de-consolidated from the date that control
ceases.
The purchase method of accounting is used to account for the acquisition of
subsidiaries by the Group. Inter-company transactions, balances and unrealised
gains on transactions between Group companies are eliminated on consolidation.
Unrealised losses are also eliminated unless the transaction provides evidence
of the impairment of the asset transferred. Accounting policies of subsidiaries
have been changed where necessary to ensure consistency with the policies
adopted by the Group.
Minority interests (when relevant) in the results are shown separately in the
consolidated income statement and balance sheet respectively.
The Group financial statements incorporate the assets, liabilities and results
of operations of the Company and its subsidiaries acquired and disposed of
during a financial period. These assets, liabilities and results are included
from the effective dates of acquisition to the effective dates of disposal.
Where necessary, the accounting policies of subsidiaries are changed to ensure
the consistency with the policies adopted by the Group.
b) Joint ventures
Joint venture operations, if any, are accounted for using the equity method and
are carried at cost by the parent entity. Under the equity method, the share of
the profits and losses of the joint venture is recognised in the statement of
comprehensive income. Profits or losses on transactions establishing the joint
venture are eliminated to the extent of the Group's ownership interest until
such time as they are realized by the joint venture partnership on consumption
or sale, unless they relate to an unrealized loss that provides evidence of the
impairment of an asset transferred
Mineral exploration expenditure
Exploration and evaluation costs incurred by the Group are accumulated
separately for each area of interest. Such costs comprise net direct costs and
an appropriate portion of related overhead costs, but do not include general
overheads or administrative costs that do not have a specific association with a
particular area of interest. Exploration and evaluation costs are carried
forward to the extent that:
a) such costs are expected to be recouped through the successful development and
utilisation of the area of interest, or alternatively by its sale; or
b) exploration and evaluation activities in the area of interest have not
reached a stage which permits a reasonable assessment of the existence or
otherwise of economically recoverable reserves.
In the event that an area of interest is abandoned or if the Directors consider
the costs incurred exceed the area of interest's recoverable amount, accumulated
costs carried forward are written off in the year in which that assessment is
made.
Exploration and evaluation costs are not carried forward in respect of any area
of interest unless the Group's right of tenure to the property is current.
Depletion is not charged on areas of interest under development until commercial
production commences, at which time it will be recorded using a units of
production basis which will be based on the mineral mined at each area of
interest relative to the estimated resource relating of that area of interest.
Joint venture management fees
A management fee is earned on expenditure incurred on the Uranium Joint Venture
at a rate of 20% of the underlying costs incurred in Zambia. This income is
recognised in the consolidated statement of comprehensive income with a
corresponding amount capitalised to business development costs.
Revenue recognition
Interest revenue is recorded on a time proportion basis, based on the effective
yield of the asset. The effective yield of the asset is the rate of interest
required to discount the stream of future cash receipts, expected over the life
of the financial asset, to equate to its net carrying amount.
Foreign currency
The individual financial statements of each Group entity are presented in the
currency of the primary economic environment in which the entity operates (its
functional currency). For the purpose of the consolidated financial statements,
the results and financial position of each entity are expressed in Pounds
Sterling which is the functional currency of Lithic Metals and Energy Limited
and is the presentation currency for its consolidated financial statements.
Foreign currency translations are translated into the functional currency using
the exchange rates prevailing at the dates of the transactions. Foreign exchange
gains and losses resulting from the settlement of such transactions and from the
translation at year-end exchange rates of monetary assets and liabilities
denominated in foreign currencies are recognised in the income statement, except
when deferred in equity as qualifying cash flow hedges and qualifying net
investment hedges.
Translation differences on non-monetary items, such as equities held at fair
value through the profit and loss, are reported as part of the fair value gain
or loss.
The results and financial position of the Group entities (none of which has the
currency of a hyperinflationary economy) that have a functional currency
different from the presentation currency are translated into the presentation
currency as follows:
* Assets and liabilities for each balance sheet presented are translated at the
closing rate at the date of that balance sheet.
* Income and expenses for each income statement are translated at average rates
(unless this is not a reasonable approximation of the cumulative effect of the
rates prevailing on the transaction date, in which case income and expenses are
translated at the dates of the transactions); and
* All resulting exchange differences are recognised as a separate component of
equity.
On consolidation, exchange differences arising from the translation of any net
investment in foreign entities and borrowings are taken to shareholders equity.
When a foreign operation is sold or borrowings repaid, a proportionate share of
such exchange differences are recognised in the income statement as part of the
gain or loss on sale.
Earnings per share and dilutive earnings per share
Basic earnings per share is calculated by dividing the profit attributable to
equity holders of the Company, excluding any costs of servicing equity other
than ordinary shares, by the weighted average number of ordinary shares
outstanding during the financial year, adjusted for bonus elements in ordinary
shares issued during the year.
Diluted earnings per share adjusts the figures used in the determination of
basic earnings per share to take into account the after tax effect of interest
and other finance charges associated with diluted potential ordinary shares and
the weighted average number of shares assumed to have been issued for no
consideration in relation to dilutive potential ordinary shares.
2. Segmental information
Lithic has early adopted IFRS 8 'Operating Segments'. Lithic operates in three
reporting geological areas and reports to management on a project by project
basis. During the financial year Lithic operated in:
a. Zambia - exploring for Nickel and Uranium.
b. Togo - exploring for Uranium, Nickel, Zinc and Chromite.
c. Mozambique - exploring for Nickel
As the projects are all in exploration phase no segmental revenue or segment
results are disclosed. Lithic's policy is to capitalise all exploration
expenditure where it has legal tenure to the exploration licences and such
expenditures are expected to be recouped through the successful development and
utilization of the area of interest, or alternatively by its sale or the
exploration and evaluation activities at each area of interest have not reached
a stage which permits a reasonable assessment of the existence or otherwise of
economically recoverable reserves. All exploration expenditure is accumulated on
an area of interest basis and reflected in the balance sheet under "Mineral
Properties".
Each project is a reportable segment where it comprises at least 10% of the
capitalised exploration costs. Where the aggregate of reportable segments are
not within 75% of total exploration costs capitalised, additional segments are
sought and disclosed so that all reportable segments comprise at least 75% of
total capitalised exploration costs. No reportable segment has been merged or
aggregated together to meet the 10% rule mentioned above.
+-------------------------------+------------+-----------------+-------------+-------------+-----------+
| | | | Capitalised | |
| | | | exploration costs | |
+-------------------------------+------------+-----------------+---------------------------+-----------+
| | Country | Mineral/Metals | Acquisition | Exploration | Total |
| | | | costs | costs | |
| | | | | | |
+-------------------------------+------------+-----------------+-------------+-------------+-----------+
| | | | GBP | GBP | GBP |
+-------------------------------+------------+-----------------+-------------+-------------+-----------+
| Asset reconciliation - | | | | | |
| September 2009 | | | | | |
+-------------------------------+------------+-----------------+-------------+-------------+-----------+
| | | | | | |
+-------------------------------+------------+-----------------+-------------+-------------+-----------+
| - Haito | Togo | Nickel/Chromite | 309,093 | 545,159 | 854,252 |
+-------------------------------+------------+-----------------+-------------+-------------+-----------+
| - Pagala | Togo | Zinc | 309,093 | 205,459 | 514,552 |
+-------------------------------+------------+-----------------+-------------+-------------+-----------+
| - Niamtougou | Togo | Uranium | 309,093 | 239,439 | 548,532 |
+-------------------------------+------------+-----------------+-------------+-------------+-----------+
| - Kara | Togo | Uranium | 309,092 | 91,803 | 400,895 |
+-------------------------------+------------+-----------------+-------------+-------------+-----------+
| - Mavita | Mozambique | Nickel | - | 617,789 | 617,789 |
+-------------------------------+------------+-----------------+-------------+-------------+-----------+
| Segmental exploration assets | | | 1,236,371 | 1,699,649 | 2,936,020 |
| | | | | | |
+-------------------------------+------------+-----------------+-------------+-------------+-----------+
| Segmental property, plant and | | | | | |
| equipment | | | | | |
+-------------------------------+------------+-----------------+-------------+-------------+-----------+
| - Zambia | | | | | 70,196 |
+-------------------------------+------------+-----------------+-------------+-------------+-----------+
| - Togo | | | | | 109,945 |
+-------------------------------+------------+-----------------+-------------+-------------+-----------+
| - Mozambique | | | | | 335 |
+-------------------------------+------------+-----------------+-------------+-------------+-----------+
| Other assets in Bermuda (see | | | | | 1,722,626 |
| Note 6) | | | | | |
+-------------------------------+------------+-----------------+-------------+-------------+-----------+
| Unallocated assets | | | | | 1,146,754 |
+-------------------------------+------------+-----------------+-------------+-------------+-----------+
| | | | | | |
+-------------------------------+------------+-----------------+-------------+-------------+-----------+
| Total assets | | | 5,985,876 |
+-------------------------------+------------+-----------------+-------------+-------------+-----------+
+------------------------------+------------+-----------------+--------------+---------------+------------+
| | | | Capitalised exploration | |
| | | | costs | |
+------------------------------+------------+-----------------+------------------------------+------------+
| | Country | Mineral/Metals | Acquisition | Exploration | Total |
| | | | costs | costs | |
| | | | | | |
+------------------------------+------------+-----------------+--------------+---------------+------------+
| | | | GBP | GBP | GBP |
+------------------------------+------------+-----------------+--------------+---------------+------------+
| Asset reconciliation - March | | | | | |
| 2009 | | | | | |
+------------------------------+------------+-----------------+--------------+---------------+------------+
| | | | | | |
+------------------------------+------------+-----------------+--------------+---------------+------------+
| - Haito | Togo | Nickel/Chromite | 309,093 | 571,627 | 880,720 |
+------------------------------+------------+-----------------+--------------+---------------+------------+
| - Pagala | Togo | Zinc | 309,093 | 215,445 | 524,538 |
+------------------------------+------------+-----------------+--------------+---------------+------------+
| - Niamtougou | Togo | Uranium | 309,093 | 184,448 | 493,541 |
+------------------------------+------------+-----------------+--------------+---------------+------------+
| - Kara | Togo | Uranium | 309,092 | 64,916 | 374,008 |
+------------------------------+------------+-----------------+--------------+---------------+------------+
| - Mavita | Mozambique | Nickel | - | 659,202 | 659,202 |
+------------------------------+------------+-----------------+--------------+---------------+------------+
| Segmental exploration assets | | | 1,236,371 | 1,695,638 | 2,932,009 |
| | | | | | |
+------------------------------+------------+-----------------+--------------+---------------+------------+
| Segmental property, plant | | | | | |
| and equipment | | | | | |
+------------------------------+------------+-----------------+--------------+---------------+------------+
| - Zambia | | | | | 109,285 |
+------------------------------+------------+-----------------+--------------+---------------+------------+
| - Togo | | | | | 150,114 |
+------------------------------+------------+-----------------+--------------+---------------+------------+
| - Mozambique | | | | | 563 |
+------------------------------+------------+-----------------+--------------+---------------+------------+
| Other assets in Bermuda (see | | | | | 1,522,120 |
| Note 6) | | | | | |
+------------------------------+------------+-----------------+--------------+---------------+------------+
| Unallocated assets | | | | | 1,786,538 |
+------------------------------+------------+-----------------+--------------+---------------+------------+
| | | | | | |
+------------------------------+------------+-----------------+--------------+---------------+------------+
| Total assets | | | 6,500,629 |
+------------------------------+------------+-----------------+--------------+---------------+------------+
During the year to 31 March 2009 Lithic impaired the Mitaba project in Zambia,
and capitalised exploration costs associated with this project amounting to
GBP1,982,193 were expensed as an impairment cost.
+------------------------------------------------------------------------------+--------------+--------------+
| | Total | Total |
| Liabilities Reconciliation | Liabilities | Liabilities |
+------------------------------------------------------------------------------+--------------+--------------+
| | Sept 09 | March 09 |
+------------------------------------------------------------------------------+--------------+--------------+
| | GBP | GBP |
+------------------------------------------------------------------------------+--------------+--------------+
| | | |
+------------------------------------------------------------------------------+--------------+--------------+
| Zambia | 17,418 | 14,562 |
+------------------------------------------------------------------------------+--------------+--------------+
| Togo | 21,635 | 34,681 |
+------------------------------------------------------------------------------+--------------+--------------+
| Mozambique | 1,885 | 2,111 |
+------------------------------------------------------------------------------+--------------+--------------+
| Total segmental liabilities | 40,938 | 51,354 |
+------------------------------------------------------------------------------+--------------+--------------+
| Unallocated liabilities | 193,889 | 159,593 |
+------------------------------------------------------------------------------+--------------+--------------+
| Total liabilities | 234,827 | 210,947 |
+------------------------------------------------------------------------------+--------------+--------------+
3. Reconciliation of deficit
The deficit before income tax was after the following income and expenses:
+--------------+------------+-----------+-------------+
| | Unaudited | Unaudited | Audited |
| | six | | year |
| | months | six | ended |
| | ended | months | March |
| | September | ended | 2009 |
| | 2009 | September | |
| | | 2008 | |
+--------------+------------+-----------+-------------+
| | GBP | GBP | GBP |
+--------------+------------+-----------+-------------+
| Interest | 2,499 | 99,690 | 122,434 |
| income | | | |
+--------------+------------+-----------+-------------+
| Management | 25,769 | 122,893 | 183,947 |
| fee | | | |
| received | | | |
+--------------+------------+-----------+-------------+
| Profit | - | 399 | 73 |
| on | | | |
| asset | | | |
| write-off | | | |
+--------------+------------+-----------+-------------+
| Foreign | - | | 3,628 |
| exchange | | | |
| gains | | | |
+--------------+------------+-----------+-------------+
| Total | 28,268 | 222,982 | 310,082 |
| revenue | | | |
+--------------+------------+-----------+-------------+
| Auditors' | | | |
| remuneration | | | |
+--------------+------------+-----------+-------------+
| - | (6,263) | (5,800) | (35,725) |
| audit | | | |
| services | | | |
+--------------+------------+-----------+-------------+
| Depreciation | (8,901) | (7,934) | (17,053) |
+--------------+------------+-----------+-------------+
| Directors' | (31,250) | (39,327) | (77,976) |
| fees | | | |
+--------------+------------+-----------+-------------+
| Exploration | (565) | - | (1,982,193) |
| expenditure | | | |
| written off | | | |
+--------------+------------+-----------+-------------+
| Foreign | (221,617) | (73,617) | (120,675) |
| exchange | - | - | (5,767) |
| losses | | | |
| Interest | | | |
| expense | | | |
+--------------+------------+-----------+-------------+
| Other | (241,254) | (175,405) | (290,897) |
| costs | | | |
+--------------+------------+-----------+-------------+
| Personnel | (7,334) | (13,159) | (25,278) |
| costs - | | | |
| defined | | | |
| contribution | | | |
| plan | | | |
+--------------+------------+-----------+-------------+
| Personnel | (86,604) | (122,046) | (252,631) |
| costs - | | | |
| salaries | | | |
+--------------+------------+-----------+-------------+
| Share-based | (10,553) | (91,671) | (104,525) |
| payments | | | |
+--------------+------------+-----------+-------------+
| Total | (614,341) | (528,959) | (2,912,720) |
| expenses | | | |
+--------------+------------+-----------+-------------+
| | | | |
+--------------+------------+-----------+-------------+
| Deficit | (586,073) | (305,977) | (2,602,638) |
| for | | | |
| period | | | |
+--------------+------------+-----------+-------------+
4. Loss Per Share
The calculation of the loss and diluted loss per share is based on the deficit
for the financial period of GBP586,073 (2008 - GBP305,977) and the weighted
number of average ordinary shares of 126,297,197 (2008 - 152,297,197). No
warrants or options have been taken into account for the diluted loss per share
as the impact of these instruments is non-dilutive.
+----------+-------------+-------------+-------------+
| Shares | Unaudited | Unaudited | Audited |
| | six | | year |
| | months | six | ended |
| | ended | months | March |
| | September | ended | 2009 |
| | 2009 | September | |
| | | 2008 | |
+----------+-------------+-------------+-------------+
| Basic | 126,297,197 | 152,297,197 | 145,832,716 |
| weighted | | | |
| average | | | |
| number | | | |
| of | | | |
| ordinary | | | |
| shares | | | |
| on issue | | | |
+----------+-------------+-------------+-------------+
| | | | |
+----------+-------------+-------------+-------------+
| Basic | (0.46) | (0.20) | (1.78) |
| loss | | | |
| per | | | |
| share | | | |
| (pence) | | | |
+----------+-------------+-------------+-------------+
5. Mineral Interests
a) Reconciliation
+----------------------------------+---------------+---------------+--------------+
| | Unaudited | Unaudited | Audited |
| | six months | six months | year ended |
| | ended | ended | March 2009 |
| | September | September | |
| | 2009 | 2008 | |
+----------------------------------+---------------+---------------+--------------+
| | GBP | GBP | GBP |
+----------------------------------+---------------+---------------+--------------+
| | | | |
+----------------------------------+---------------+---------------+--------------+
| Opening balance | 2,932,009 | 3,083,930 | 3,094,160 |
+----------------------------------+---------------+---------------+--------------+
| Exploration costs capitalised | 123,864 | 566,858 | 1,334,658 |
| for the period | | | |
+----------------------------------+---------------+---------------+--------------+
| Exploration costs written off | (565) | - | (1,982,193) |
+----------------------------------+---------------+---------------+--------------+
| Foreign exchange movements | (119,288) | 74,095 | 485,384 |
+----------------------------------+---------------+---------------+--------------+
| As at 30 September 2008 | 2,936,020 | 3,724,883 | 2,932,009 |
+----------------------------------+---------------+---------------+--------------+
b) Exploration expenditure per project
+----------------------------------+---------------+---------------+--------------+
| | Unaudited | Unaudited | Audited |
| | six months | six months | year ended |
| | ended | ended | March 2009 |
| | September | September | |
| | 2009 | 2008 | |
+----------------------------------+---------------+---------------+--------------+
| | GBP | GBP | GBP |
+----------------------------------+---------------+---------------+--------------+
| Group exploration projects | | | |
+----------------------------------+---------------+---------------+--------------+
| Mitaba | - | 1,578,636 | - |
+----------------------------------+---------------+---------------+--------------+
| Haito | 854,252 | 606,473 | 880,720 |
+----------------------------------+---------------+---------------+--------------+
| Pagala | 514,552 | 445,716 | 524,538 |
+----------------------------------+---------------+---------------+--------------+
| Niamtougou | 548,532 | 419,738 | 493,541 |
| | | | |
+----------------------------------+---------------+---------------+--------------+
| Kara | 400,895 | 331,839 | 374,008 |
+----------------------------------+---------------+---------------+--------------+
| Mavita | 617,789 | 342,481 | 659,202 |
+----------------------------------+---------------+---------------+--------------+
| As at 30 September 2008 | 2,936,020 | 3,724,883 | 2,932,009 |
+----------------------------------+---------------+---------------+--------------+
6. Other assets
+----------------------------------+---------------+---------------+--------------+
| | Unaudited | Unaudited | Audited |
| | six months | six months | year ended |
| | ended | ended | March 2009 |
| | September | September | |
| | 2009 | 2008 | |
+----------------------------------+---------------+---------------+--------------+
| | GBP | GBP | GBP |
+----------------------------------+---------------+---------------+--------------+
| | | | |
+----------------------------------+---------------+---------------+--------------+
| Opening balance | 1,522,120 | 204,839 | 205,816 |
+----------------------------------+---------------+---------------+--------------+
| Investment in uranium JV farm-in | 200,506 | 921,228 | 1,316,304 |
| projects | | | |
+----------------------------------+---------------+---------------+--------------+
| Business development costs | 1,722,626 | 1,126,067 | 1,522,120 |
+----------------------------------+---------------+---------------+--------------+
Lithic is farming into a uranium Joint Venture with Zambezi Resources Limited.
The costs associated with this farm-in are capitalised to business development
projects and forms part of acquisition costs once the farm-in is earned. In the
event that Lithic decides not to proceed with the Joint Venture, all costs
capitalised to the Joint Venture will be expensed.
7. Cash and cash equivalents
+----------------------------+---------------------+----------------+-------------+
| | Unaudited | Unaudited | Audited |
| | six months ended | six months | year ended |
| | September 2009 | ended | |
| | | September | March 2009 |
| | | 2008 | |
+----------------------------+---------------------+----------------+-------------+
| | GBP | GBP | GBP |
+----------------------------+---------------------+----------------+-------------+
| Cash on hand and at bank | 203,389 | 311,307 | 207,810 |
+----------------------------+---------------------+----------------+-------------+
| Cash on term deposits | 745,475 | 2,713,331 | 1,356,102 |
+----------------------------+---------------------+----------------+-------------+
| Total cash and cash | 948,864 | 3,024,638 | 1,563,912 |
| equivalents | | | |
+----------------------------+---------------------+----------------+-------------+
8. Investment in Subsidiaries
At 30 September 2009, the Company had interests in the following subsidiaries:
+---------------------+---------------+------------+----------+-------+-------------+------------+
| Company | Country of | Holding | Class | % | Nature of |Investment |
| |Incorporation | Company | of | Held | Business | Cost |
| | | | Share | | | |
| | | | Capital | | | |
| | | | Held | | | |
+---------------------+---------------+------------+----------+-------+-------------+------------+
| | | | | | | GBP |
+---------------------+---------------+------------+----------+-------+-------------+------------+
| MR Nickel | Bermuda | Lithic | Ordinary | 100 | Exploration | 7,500 |
| (Bermuda) | | Metals and | | | | |
| Limited | | Energy | | | | |
| | | Limited | | | | |
+---------------------+---------------+------------+----------+-------+-------------+------------+
| MR Nickel | Zambia | MR Nickel | Ordinary | 100 | Exploration | 12 |
| Limited | | (Bermuda) | | | | |
| | | Limited | | | | |
+---------------------+---------------+------------+----------+-------+-------------+------------+
| Zambezi Niquel | Mozambique | MR Nickel | Ordinary | 100 | Exploration | 420 |
| Mozambique | | (Bermuda) | | | | |
| Limitada | | Limited | | | | |
+---------------------+---------------+------------+----------+-------+-------------+------------+
| Regent | British | Lithic | Ordinary | 100 | Exploration | 1,246,566 |
| Resources | Virgin | Metals and | | | | |
| Capital | Islands | Energy | | | | |
| Corporation Limited | | Limited | | | | |
| (BVI) | | | | | | |
+---------------------+---------------+------------+----------+-------+-------------+------------+
| Regent | Togo | RRCC (BVI) | Ordinary | 100 | Exploration | 10,195 |
| Resources | | Limited | | | | |
| Capital | | | | | | |
| Corporation | | | | | | |
| SAU | | | | | | |
+---------------------+---------------+------------+----------+-------+-------------+------------+
Loans by the Company to its subsidiaries are at call, interest free with no
agreed fixed terms of repayment. The Company has undertaken not to recall the
loans within 12 months from the date of this report unless the respective
subsidiaries are in a financial position to do so. The balance owing by
subsidiaries at 30 September 2009 was GBP2,014,682 (30 September 2008;
GBP1,568,694).
9. Issued Capital
The Company has 302 million authorised ordinary par value shares at GBP0.01
each.
+-------------------------------------+---------------+-----------+
| | Number of | Issued |
| | Shares | Capital |
+-------------------------------------+---------------+-----------+
| | GBP | GBP |
+-------------------------------------+---------------+-----------+
| Issued and fully paid | | |
+-------------------------------------+---------------+-----------+
| Balance at 1 April 2008 | 152,297,197 | 1,522,972 |
+-------------------------------------+---------------+-----------+
| Share buy-back December 2008 | (26,000,000) | (130,000) |
+-------------------------------------+---------------+-----------+
| Balance at 31 March 2009 | 126,297,197 | 1,392,972 |
+-------------------------------------+---------------+-----------+
| Share buy-back December 2008 (note | - | (130,000) |
| e) | | |
+-------------------------------------+---------------+-----------+
| Balance at 30 September 2008 | 126,297,197 | 1,262,972 |
+-------------------------------------+---------------+-----------+
Notes
* There were 10,900,000 share options outstanding at the beginning and end of the
period.
* No options were issued or exercised in the period.
* No options expired or were forfeited in the period.
* The weighted average price of the share options outstanding at the end of the
period was GBP0.12.
* The share buy-back in December 2008 was priced at 0.5p, less than the nominal
value of the shares and a transfer to revenue reserves has been made in the
current period for the difference between the cost of the shares and the nominal
value of the shares bought back.
10. Reserves
+------------------------+--------------+---------------+---------------+------------+
| | Share | Accumulated | Foreign | Options |
| | premium | deficit | currency | and |
| | reserve | | translation | warrants |
| | | | reserve | reserve |
+------------------------+--------------+---------------+---------------+------------+
| | GBP | GBP | GBP | GBP |
+------------------------+--------------+---------------+---------------+------------+
| As at 1 April 2009 | 7,838,278 | (3,961,967) | 758,153 | 285,346 |
+------------------------+--------------+---------------+---------------+------------+
| Movements during the | (23,100) | (456,073) | 36,887 | 10,553 |
| period | | | | |
+------------------------+--------------+---------------+---------------+------------+
| As at 30 September | 7,815,178 | (4,418,040) | 795,040 | 295,899 |
| 2009 | | | | |
+------------------------+--------------+---------------+---------------+------------+
* The share premium reserve reflects the amounts received for the issuance of
shares in excess of the par value of the share.
* The accumulated deficit represents the Group's operational losses since
incorporation.
* The foreign currency translation reserve represents the foreign exchange
movements on the translation of all foreign entities controlled by the Group.
* The options and warrants reserve represents the value of all share based
payments made to directors, staff and other persons as measured by the Black
Scholes valuation model. The respective amounts are transferred out of the
reserve and into share capital, share premium accounts and accumulated deficit
as and when the options and warrants are exercised.
11. Commitments
On 21 May 2008 the Group entered into a joint venture "Heads of Agreement" with
Zambezi Resources Limited (hereafter "ZRL") and signed the farm-in Joint Venture
agreement on 28 April 2008 in which Lithic has the right to explore for uranium
on certain of ZRL's mining licences. In terms of the agreement Lithic is
required to contribute in aggregate US$5 million, over a period of 2.5 years,
for a 51% equity participation in both Oryx Resources Limited and Sothern
African Resources Limited. To achieve the 51% holding, Lithic must still
contribute US$1,924,275 in aggregate, to the respective companies.
The Group is party to a lease of business premises, being the former Head Office
in Perth, Australia. The premises are leased for a fixed term of three years and
include an option to renew. The lease is subject to an increase price
adjustments being the maximum of 5% or current rental prices at that time. The
lease expires in March 2011 at the reporting date the commitment under the lease
was GBP77,396.
The Group had no contingent liabilities at 30 September 2009.
12. Post-balance Sheet Events
On 29 October 2009 the Company announced that as part of the continuing review
of the business, the Company intends to acquire the entire issued capital of
Amber Petroleum Limited, a private company incorporated in the British Virgin
Islands via a share for share exchange. On the same day trading in the Company's
shares on the London Stock Exchange was suspended.
A Special General meeting will be convened in due course to approve the
transaction which will include increasing the authorised share capital to
GBP30,000,000 and changing the name of the enlarged Company to AfNat Resources
Limited. The board believes that trading in the Enlarged Share Capital will
commence prior to 31 December 2009.
Authorised on behalf of the Board.
+----------------------------------------+---------------------------+
| David Weill | Ozge Erdem |
+----------------------------------------+---------------------------+
| Director | Director |
+----------------------------------------+---------------------------+
| Date: 25 November 2009 | Date: 25 November 2009 |
+----------------------------------------+---------------------------+
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR PUGMWGUPBGMA
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