TIDMPOL
RNS Number : 0266I
Polo Resources Limited
30 March 2020
his announcement contains inside information as defined in
Article 7 of the EU Market Abuse Regulation No 596/2014 and has
been announced in accordance with the Company's obligations under
Article 17 of that Regulation.
30 March 2020
Polo Resources Limited
("Polo" or the "Company")
INTERIM RESULTS FOR THE SIX MONTHSED 31 DECEMBER 2019
Polo Resources Limited (AIM: POL), the multi-sector investment
company with interests in oil, gold, coal, copper, phosphate,
lithium, iron and vanadium, today announces its unaudited results
for the six months ended 31 December 2019.
Financial Summary:
-- Total Net Assets for the six months ended 31 December 2019
were USD53.89 million (30 June 2019: USD60.16 million).
-- Total Net Assets of USD 28.61 million as of 20 March 2020 (31
December 2019: USD53.89 million).
-- Net Asset Value per share as at 20 March 2020 was
approximately 7.94 pence per share (31 December 2019: 13.18 pence
per share).
Chairman's Statement
Introduction
As I write my statement for these Interim Results, I do so
during a period of significant economic uncertainty caused about by
the effects of the COVID-19 virus, an event which has caused an
exogenous economic shock to the world economy. Whilst China was the
first country to feel the economic and social impact of COVID-19,
it appears that it will also be the first country to come through
this problem, where it is beginning to take slow steps towards
economic normality.
The impact of COVID-19 on public markets is profound and where
most major global stock exchanges are seeing huge and unprecedented
equity sell offs and market volatility.
At this difficult time, Polo's responsibility to shareholders is
to keep a tight focus on our day to day operating costs, whilst at
the same time lending our support where needed to our investee
companies. At present I see no further calls upon Polo to provide
financial support to our investee companies in the near future and
little downside risk to our shareholding position in terms of
dilution.
Polo remains a low cost, public listed investment company with a
portfolio of investments that are well positioned for when the
market upturn occurs. In the meantime Polo is focussed on meeting
its regulatory and corporate governance requirements and providing
our shareholders with as much information as possible related to
the commodity markets where we have investment exposure. The period
under review has seen significant progress made across by two of
our investee companies, Hibiscus Petroleum Berhad ("Hibiscus" - Oil
and Gas) and GCM Resources pls ("GCM" - Coal and Power); and
noteworthy progress by Celamin Holdings Limited ("Celamin" -
Phosphate, Zinc and Lead) and PRISM Diversified Ltd ("Prism" -
Strategic Metals and Advanced Materials).
Hibiscus recently reported that the average gross oil production
from its North Sabah asset improved by approximately 20% in the
period ended 31 December 2019 ("2Q FY2020") compared to the
previous financial quarter. This additional oil production was
delivered through infill drilling projects carried out as part of
an aggressive production enhancement programme executed in calendar
year 2019. However, following recent macroeconomic headwinds such
as the impact of the coronavirus and the Russia/Saudi Arabia price
war, Hibiscus has provided guidance on its situation.
On 10 March 2020, Hibiscus announced that the company remains on
track to achieve its total production target of delivering between
3.3 million barrels of oil ("MMbbls") and 3.5 MMbbls in the
financial year ending June 30, 2020 ("FY2020") based on the
combined production from the Anasuria Cluster (U.K North Sea) and
North Sabah. However, the company warns that there may be revisions
to this target as there could be an advantage to execute
maintenance activities, which require a shutdown, during this
period of low prices.
As part of the initiative to preserve cash, Hibiscus' capital
projects to enhance production scheduled for this year's execution
will also be revisited and only projects showing viability and a
reasonable payback period will be pursued, while projects that
promise only mid to long term returns will not be pursued as
aggressively as originally anticipated. However the they remain
focused on new ventures and this lower oil price environment could
potentially be advantageous in acquiring assets at a reasonable
price to boost overall oil production.
As a measure of the robustness of our investment in Hibiscus,
the market was buoyed by their announcement of 17 March 2020 where
they announced they had procedures in place to protect personnel
and would continue to operate, vis-à-vis North Sabah, during the
"14-day Movement Control Order" imposed by the Malaysian government
in response to the Covid-19 outbreak.
GCM made significant progress towards delivering against its
Strategy of presenting a comprehensive Power Solution to the
Bangladesh Government based on a 15 million tonne per annum
"captive" coal mine in the Phulbari Coal Basin, feeding power
plants with a combined capacity 6,000MW utilising highly
energy-efficient Ultra-supercritical boiler technology.
Working under joint-venture arrangements, GCM and the
internationally renowned PowerChina completed the full Proposals
adhering to Bangladesh Power Development Board requirements for the
Phase I and Phase II each being 2 X 2,000MW for a total
4,000MW.
GCM also entered into an MOU with PowerChina and NFC (China
Non-ferrous Metal Industry's Foreign Engineering and Construction
Co. Ltd) to assist with development of the Phulbari coal mine
itself. NFC successfully completed their Due Diligence studies at
the end of 2019 and the intention is to establish a formal joint
venture arrangement.
The Phulbari Coal and Power Project a "Mega Project" and will
mobilise some US14.5 Billion Foreign Direct Investment. On 26 March
2020, GCM announced that it had prepared the Project Proposal is
working with its local consultant, DG Infratech, to ready it for
submission to the Bangladesh Government. However, GCM also noted
that the COVID-19 pandemic was already impacting its timelines,
given that Bangladesh Government is taking actions in line with
that of governments worldwide to deal with pandemic.
Celamin continues to succeed in its efforts to regain control of
the Chaketma Phosphate Project ("Chaketma") following the illegal
transfer of its interest by Tunisian Mining Services ("TMS"). On 14
February 2020, the company announced that the Tunisian Court
process to return Celamin's interest in Chaketma had moved to the
final phase which was expected to take up to three months. This
process does not interfere with Celamin's parallel actions to seize
assets held by TMS linked to recovering the damages and costs
awarded to Celamin (amounting to some US$4.4m).
Celamin provided a further update on 20 March 2020 that the
"urgent application to compulsorily effect the transfer of its
interest from TMS back to Celamin" scheduled for hearing 18 March
2020 has been delayed owing to the Tunisian Courts being
temporarily closed due to the Coronavirus. The company's Managing
Director was in country for the hearing and was advised the Courts
are expected to re-open in April. The company also advised an
expert had carried out a valuation of assets seized from TMS and
that it expects, following Courts re-opening, there will be a
public auction of these assets. A judge would then determine the
amount of funds Celamin would receive to partly offset the monies
owed.
In the 20 March 2020 update, Celamin announced it had received
AUD328,668 additional funds following the early exercise of
options. There remains ASX listed options exercisable at AUD0.05
that could further realise some AUD3,180,761, however, these will
expire on 18 May 2020.
Prism has until recently been very much stuck in a research and
development arena. However, new management has taken steps to
positioning the company as a leading, vertically integrated
supplier of strategic metals and advanced materials used in many
fast growing high-tech and industrial manufacturing applications.
The company's competitive position will be underpinned by the very
low energy cost in Alberta, Canada where the company operates.
PRISM's initial range of products will include iron powders
(carbonyl and atomised), vanadium and cobalt powders that all
command high market value and strong global demand. These metal
powders are used in a growing number of high-tech applications,
such as additive manufacturing (3D printing), battery
manufacturing, powder metallurgy, water treatments, and as
high-purity iron inputs in pharmaceutical and food industry, to
name a few.
Additionally, PRISM intends to enter the lithium market and as
such has secured a notable mineral tenure with a lithium potential
and is co-developing LiREC(R) lithium direct extraction technology
for producing lithium from brines.
Portfolio Overview
Hibiscus Petroleum Berhad (")
Hibiscus is Malaysia's first listed independent oil and gas
exploration and production company. The company's significant
cashflow and profitability is based on 50% ownership of the
Anasuria Cluster of producing wells in the U.K North Sea
("Anasuria") and its 50% participating interest in the 2011 North
Sabah Enhanced Oil Recovery Production Sharing Contract ("North
Sabah PSC"). It's excellent track record as operator for these
production joint-ventures is reflected in it receiving safety
performance awards for both Anasuria and North Sabah PSC.
Significant activities in the 2018-19 period included: i)
Completion of the acquisition of a 50% participating interest in
North Sabah PSC and assumption of operating responsibility; ii)
Technical work at Anasuria increased the volume of reserves, and
the company signed deals for a side -- track well and a water
injection well both aimed at maximising recovery; iii) The
acquisition of 50% participating interest in the Marigold and
Sunflower Blocks also located in the U.K North Sea. These blocks
are discovered fields which the company aims to bring to First Oil
by 2023 and described as a "game-changer" and iv) The acquisition
of 100% interest in Blocks 15/18d and 15/19b also located in the
North Sea. The blocks include the Crown Discovery which consists of
2C contingent resources that range between 4 to 8 MMbbls, subject
to an independent 3rd party expert assessment.
Careful management of costs to maintain low operational
expenditure and the delivery of production enhancement projects
have been key towards obtaining a low unit production cost
structure. The company continues to operate debt-free with its
activities and acquisitions to-date funded through a combination of
equity and internally generated funds.
Quarterly Report for the Quarter Ended 31 December 2019
The Group reported that average gross oil production from its
North Sabah asset improved by approximately 20% compared to the
previous financial quarter. This additional oil production was
delivered through infill drilling projects carried out as part of
an aggressive production enhancement programme executed in calendar
year 2019. This programme involved drilling a total of nine wells
in Malaysia and the United Kingdom and demonstrated Hibiscus
Petroleum's commitment towards growing its business in these
areas.
For its 2Q FY2020 results, the Group announced Revenue of
RM271.8 million (USD62.18 million) and a PAT of RM51.2 million
(USD11.71 million), from the sale of 921,156 barrels of oil. EBITDA
for the period was RM142.3 million (USD32.56 million) with a strong
EBITDA margin of 52.4%.
Events Subsequent to Reporting Date
Corporate and Business Update
On 10 March 2020, Hibiscus announced a Corporate and Business
Update outlining the Group's targets and initiatives following the
COVID-19 outbreak and the recent OPEC+ alliance breakup.
Highlights:
-- The confluence of the COVID-19 outbreak and OPEC+ alliance
breakup has adversely impacted crude oil prices.
-- Hibiscus on track to deliver three offtakes in 3Q FY2020
across North Sabah and Anasuria; two offtakes already conducted in
February 2020. Three further offtakes expected in 4Q FY2020.
-- Total production is still on track to hit target of 3.3 - 3.5
MMbbls of oil delivered in FY2020.
-- Maintaining net positive operating cashflows by managing OPEX.
-- CAPEX to be selectively deferred if period of low crude prices is prolonged.
-- Initiatives on new ventures to continue.
Market Environment
Oil prices are currently being impacted by:
-- A supply overhang caused by increasing US production, and
demand overhang caused by the US- China trade war;
-- A reduction in global oil demand caused by the coronavirus,
COVID-19, as sectors like transportation are affected due to
restrained movement and travel. As shown in Figure 1 of Hibiscus's
announcement, in February 2020, global oil demand contracted by 2.0
million barrels per day ("MMbbls/day") y-o-y, mostly from China.
While there is some downside risk to the forecast, the expectation
is for a recovery in the second half of calendar year 2020; and
-- The failure of OPEC and Russia to come to an agreement on
further production cuts amid the coronavirus outbreak and the
subsequent price war initiated by Saudi Arabia have resulted in
production are believed to be an attempt to secure a positive
outcome from the next meeting of the OPEC Conference in June
2020.
Hibiscus provides the following guidance on its situation:
Offtakes and Revenue
At times of low oil prices, produced volumes are important and
in this regard, Hibiscus confirms that a total of three crude oil
offtakes were planned for the Quarter ending 31 March 2020 ("3Q
FY2020") across both the North Sabah and Anasuria assets. Two crude
oil offtakes were conducted before the sharp drop in crude oil
prices, with the third planned for March 2020. Looking ahead to the
Quarter ending 30 June 2020 ("4Q FY2020"), Hibiscus targets a
further three offtakes, bringing the total offtakes for FY2020 to
eleven.
For 2Q FY2020, net daily oil production at the North Sabah and
Anasuria assets were 6,318bbls/day and 2,680bbls/day respectively.
For the months of January and February 2020, the production from
both assets has exceeded the levels recorded in 2Q FY2020. Total
production remains on track to achieve the company's FY2020 target
of delivering between 3.3 - 3.5 MMbbls of oil. There may be
revisions to this target as there could be an advantage to execute
maintenance activities which require a shutdown, during this period
of low prices. This will allow future production to be optimised
through higher uptime and potentially higher realised prices.
Initiatives to Reduce Costs Remain a High Priority
The careful management of costs to maintain low operational
expenditure and the delivery of production enhancement projects
have been key towards obtaining a low unit production cost
structure. This is particularly important in times of low crude oil
prices.
For guidance, Hibiscus highlights in Figure 2 of its
announcement, the historical average unit production costs (OPEX
per boe or OPEX per bbl) for both the Anasuria and the North Sabah
assets. These have been below the average realised oil price
achieved in previous quarters. Furthermore, in times of low crude
prices, costs of oilfield services generally reduce and the company
has already commenced discussions with key service providers to
determine if any efforts can be made in this area so that unit
production costs are further reduced.
CAPEX
As part of the company's initiative to preserve cash, capital
projects to enhance production scheduled for calendar year 2020
execution will be revisited and oilfield service contractors will
be requested to further optimise their pricing levels. Only
projects showing viability and a reasonable payback period will be
pursued, while projects that promise only mid to long term returns
will not be pursued as aggressively as originally anticipated.
Impairment Assessment
The company, in conjunction with its external auditors, conducts
impairment assessments on all of its assets on an annual basis at
the end of each financial year. Hibiscus will continue this
practice as a normal course of business. Figure 3 of Hibiscus'
announcement shows the company's Net Assets per Share at the end of
the last five financial years.
New Ventures
Oil and gas producing assets have been coming onto the market,
partially spurred by supermajors looking to rationalise their
portfolio. Due to lower oil prices, there could be a slowdown in
these type of M&A opportunities.
Despite the weaker sentiment, the company remains focused on new
ventures. This lower oil price environment could potentially be
advantageous in acquiring assets at a reasonable price to boost the
company's oil production.
HSSE Measures in Dealing with COVID-19
The company takes the threat of the COVID-19 outbreak seriously
and has enacted various directives to counteract its spread and
impact. Guidelines issued apply to all staff, contractors and
visitors to any of the company's locations.
G CM Resources Plc ("GCM")
GCM's strategy is to present a comprehensive power solution to
the Bangladesh Government, based on a 15 million tonne per annum
"captive" coal mine in the Phulbari Coal Basin, feeding power
plants with a combined capacity of 6,000MW, utilising highly
energy-efficient ultra-supercritical boiler technology, and we
continue this progress into 2020. Furthermore, it aims to deliver
electricity at the lowest fuel cost and most attractive tariff
measured against any of the currently planned coal-fired power
plants in Bangladesh.
Key to the success of the Phulbari Coal and Power Project ("the
Project') is the development of this large-production coal mine,
based on the world class coal resource of 572 million tonnes (JORC
2004 compliant). However, the mine's economic sustainability will
be dependent of having a reliable domestic market for all of its
coal production, i.e. it must have coal purchase agreements with
power plants. To this end GCM has worked closely with highly
experienced power plant development partners being the China
Central State-Owned Enterprises POWERCHINA and CGGC (China Gezhouba
Group International Engineering) and has also brought in a
potential mine development partner, NFC (China Nonferrous Metal
Industry's Foreign Engineering and Construction Co., Ltd.).
GCM and POWERCHINA have already signed Joint-Venture Agreements
for Phases I and II (total 4,000MW) with each being for the
implementation of 2X1000MW Ultra-Supercritical Coal-fired Power
Plants on a Build, Own and Operate basis. Proposals for these two
Phases have been completed following Bangladesh Power Development
Board ("BPDB") qualification requirements and are ready to be
submitted.
Proposal document for Phase III, also being for a 2X1000MW
Ultra-Supercritical Coal-fired Power Plant, is planned to be
submitted to BPDB in due course.
As an alternative it would be possible to supply coal to other
coal-fired power plants already approved and/or Initiated by the
Government. But it is crucial that "phased development" of the
power plants and/or supply of coal to other power plants must be
aligned with the mine's ramp-up to its full production of 15
million tonnes per annum thus ensuring the captive coal mine has a
market for its full production and that the Project remains
long-term economically sustainable.
As the world is confronting climate change and looking for ways
to increase power generation, whilst simultaneously reducing
greenhouse gas production, GCM has taken steps to incorporate "high
efficiency, low emission" (HELE) coal-fired power plant technology
into the Project. Over the past decade, developments in HELE
technology have moved coal-fired power plant energy efficiency from
circa 35% to 43-44% using the ultra-supercritical technology and
this trend is expected to continue over the next 5 years, with
"advanced ultra-supercritical plants" expected to further increase
energy efficiency towards 50%, with greatly reduced CO(2)
emissions. This technological advance is highly relevant to GCM, as
it is expected to happen within the 10-year timeframe that is
estimated for the installation of the 6,000MW Phulbari Coal and
Power Project.
Celamin Holdings Limited ("Celamin")
Celamin remains focused on regaining control of the Chaketma
Phosphate Project in Tunisia ("Chaketma") following the illegal
transfer of its interest by Tunisian Mining Services ("TMS").
Chaketma is a potential large-scale, world class phosphate
development asset, which comprises six prospects over a total area
of 65km(2) . It hosts a total JORC compliant Inferred Resource of
130Mt @ 20.5% P O (See ASX announcements dated 9 November 2012 and
18 June 2013), confirmed from drilling at only two of the project's
six prospects with access by road and proximal to rail and gas
pipelines
As announced in Celamin's June 2019 Quarterly Activities Report,
following the favourable decision by the Court of Appeal in April
2019, TMS lodged an appeal. The Court of Cassation dismissed this
appeal on 23 September 2019 and by doing so, denied TMS any further
legal challenges to prolong the return of Celamin's 51% interest in
Chaketma and the payment of damages. TMS is compelled to effect
this transfer without delay.
Post the reporting period, on 14 February 2020, Celamin
announced that the Court process to return Celamin's interest in
Chaketma has moved to the final stage. The baliff acting for
Celamin has served transfer documents on TMS to effect the return
of Celamin's interest in Chaketma. This process is expected to take
one to three months.
The administrative procedure to regain control of Chaketma is
distinct from the damages owed to Celamin by TMS and, accordingly,
absent reaching an amicable settlement with TMS, the actions
Celamin has initiated to seize assets held by TMS will continue.
Upon the conclusion of each of these actions, Celamin will receive
funds from the sale of these assets.
Celamin reports that the first hearing for the urgent
application to return its interest in Chaketma Phosphates SARL
("CPSA") has occurred with the second hearing scheduled for 4 March
2020. This application is expected to be concluded in the next 6 to
8 weeks, however, this timeframe is also dependent on the Tunisian
Courts schedule as determined by the Tunisian Government's actions
in dealing with the COVID-19 virus pandemic.
Early engagement with technical groups ahead of anticipated
feasibility study
Following a review of work completed prior to the illegal
transfer of its interest in Chaketma, Celamin has short-listed
several technical groups to complete a gap analysis and/or desktop
study ahead of commencing a detailed feasibility study. This
initial work will focus on the additional information required for
the anticipated staged development of a multi-decade phosphate
project via either a simple rock phosphate export mine or an
integrated chemical fertilizer project.
Stage 1 - Rock Phosphate Export Mine
-- A scoping study completed in 2012 (announced 14 August 2012)
confirmed the potential for a simple rock phosphate export
operation.
-- This scoping study can be readily updated by reference to
revised metallurgy test-work completed in mid-2014 (announced 25
July 2014) and various other updated inputs.
Stage 2 - Integrated fertiliser/phosphoric acid plant
-- Stage 2 of the anticipated development of Chaketma is
expected to include an assessment of an integrated
fertiliser/phosphoric acid plant.
-- As announced in Celamin's December 2018 Quarterly Activities
Report, the company has secured the services of Mr Brian Campbell,
a noted phosphate specialist. Brian also has access to the
PyroPhos(TM) Processing technology that, assuming planned
demonstration plants are successful, may have a global impact on
the manner in which phosphoric acid is produced.
-- The PyroPhos(TM) Process Route uses of the well-understood
Top-Submerged Lance technology used in base metal production to
produce either liquid fertiliser/Diammonium Phosphate/Monoammonium
Phosphate and/or food / feed grade phosphoric acid.
In order to advance the staged development of Chaketma, Celamin
has continued constructive discussions with international
institutional financiers, off-take partners, infrastructure groups
and the government of Tunisia and remains committed to seeing the
full potential of Chaketma being realised for the anticipated
demonstrable benefits to the local community and the positive
impact on foreign direct investment in Tunisia should the Chaketma
project be advanced.
Zinc-lead projects advance
Celamin's primary focus is the development of the Chaketma
Phosphate Project in Tunisia, however, the Djebba and Zeflana
projects are both highly prospective base metal projects in the
Atlas Zinc-Lead Belt where high impact, low-cost exploration
activities can be completed.
The areas around Djebba and Zeflana are known to host historical
zinc-lead mines and have not had the benefit of modern exploration
technologies. The original permits (Djebba and Zeflana), held 100%
by a wholly owned subsidiary, were granted in early July 2018 and
are eligible for two three-year extensions. Celamin lodged
contiguous applications to both project areas in order to ensure
that should initial exploration results demonstrate potential to
host economic mineralisation, it would not be restrained by the
immediate boundaries of the original permits. Post the reporting
period reported that the additional permit for Djebba was granted
in January 2020, and now the Zeflana extensions have been granted
in February 2020. These permits are granted for an initial period
of three years with two three-year extensions. The total area
around Zeflana now held by Celamin amounts to 88km2.
The additional areas contiguous with the original Zeflana permit
were secured based on previous soil sampling work completed by
Zinifex and Oz Minerals that delineated multiple zinc
anomalies.
Whilst Djebba has a known historical mineral resource estimate
as previously announced (See ASX announcement 31 October 2018 -
Djebba Zinc-Lead Project - Historical Resource Estimate), Zeflana
was considered earlier stage although prior work in 2008 by Zinifex
and Oz Minerals had defined large zinc anomalies from prior soil
sampling programs. Celamin is pleased to note the evidence of
historical base metals mining on the Zeflana permit at Sidi
Abdullah, where several mine shafts and adits were discovered.
Celamin continues to plan and prepare for field work at these
projects which will include mapping, soil sampling and geophysical
surveys.
While the recovery of the company's interest in Chaketma and the
payment of damages and costs to Celamin by TMS remains Celamin's
primary focus, Celamin will continue to review opportunities in
Tunisia with a focus on the world class potential for phosphate and
base metal orebodies.
PRISM Diversified Ltd ("PRISM")
PRISM Diversified Ltd. ("PRISM"), formerly Ironstone Resources
Ltd., is a private Canadian corporation positioning itself to
become a leading, vertically integrated supplier of specialty
metals and metallic powders used in many fast growing high-tech and
industrial manufacturing applications. PRISM is expected to enter
the market by offering competitive pricing due to very low energy
costs in Alberta where the company operates - an unrivalled
advantage.
PRISM's initial range of products will include atomised iron
powders, carbonyl iron powders, and vanadium pentoxide that all
command high market value and strong global demand. These metal
powders are used in a growing number of high-tech applications,
such as additive manufacturing (3D printing), battery
manufacturing, powder metallurgy, water treatments, and as
high-purity iron inputs in pharmaceutical and food industry.
The main asset of the company is its Clear Hills Iron/Vanadium
Project, located in northwest Alberta and advantageously close to
major infrastructure and population centres. Clear Hills holds an
indicated resource of 557 million tonnes ("Mt") of iron, (with an
average grade of 33% of iron) and 2.45 million pounds of contained
vanadium (as vanadium pentoxide), with a further inferred resource
of 96Mt of iron, with an average grade of 33% (Source: NI43-101
Report, SRK Consulting, July 2012). In addition to iron and
vanadium, the ore is known to contain cobalt and gold. PRISM's
poly-metallic resource has the potential to supply its industrial
materials for many decades.
PRISM's land tenure, an asset in itself, exceeds 1.91 million
acres (7,763 sq. km) of mineral permits and leases, the largest
metallic and mineral land holding in Alberta.
During the second half or 2019, PRISM Diversified Ltd. has
embarked on a CAD5.0 million capital raise to complete the
Pre-Feasibility Study ("PFS") and Bankable Feasibility Study
("BFS") for its proposed Clear Hills Metallic Powders Project as
well as to commercialize the LiREC(R) lithium direct extraction
technology, being developed jointly with a research group based in
Vancouver, Canada.
The PFS/BFS study is being conducted by DRA Global and Vapour
Metallurgy Innovations Inc. PRISM anticipates an initial 30,000
tonnes per annum production of iron powders from a modular
operation that can be easily expanded to meet the growing global
demand for metal powders. Production is expected to commence in
2022, subject to successful funding.
Blackham Resources Limited ("Blackham")
The Wiluna Gold Operation ("Operation") is located in
Australia's largest gold belt which stretches from Norseman in the
south through Kalgoorlie and Leinster to Wiluna in the north. The
company is currently transitioning to a low capex, low risk
sulphide mining and tailings treatment operation targeting
100koz-120koz per annum production. It is also focused on a debt
reduction and balance sheet enhancement program.
Blackham generated a strong net profit for the half-year ended
31 December 2019 of AUD24 million, including AUD19 million relating
to the sale of non-core assets. Gross profit and cash flows from
operations of AUD7 million and AUD7 million respectively
illustrated the operational turnaround from prior periods' mining
investments, underpinned by gold production of 37,568oz at an All
in Sustaining Cost ('AISC') of AUD1,524/oz.
Owing to a combination of strong operating performance, the
realisation of value from the sale of non-core assets, and proceeds
from equity transactions, the company was able to achieve
significant balance sheet repair including: reduction in trade
payables of AUD11 million; and total debt reduction of AUD9
million, including the extinguishment of a Convertible Note debt.
Additionally, there was significant investment into preproduction
mining areas, in particular at the Williamson open pit mine where
AUD8 million of the total AUD10 million contribution in relation to
the Lake Way Transaction (See ASX announcement dated 23 July 2017)
was realised. Key business development activities in the six months
included the successful completion of the Stage 1 Expansion Study
(See ASX announcement dated 23 December 2019), the refurbishment of
the Rod Mill (providing additional mill throughput) (See ASX
announcement dated 12 February 2020) and exploration activities
which included the delineation of further Golden Age underground
extensions.
As at 31 December 2019, the company had AUD5.7m in cash and
bullion (cash of AUD0.7 million, bank guarantees of AUD0.6 million
and bullion of AUD4.4 million) (30 June 2019 - AUD4.2 million). Net
debt at 31 December 2019 was AUD1 million (30 June 2019 - AUD11.8
million). The face value of debt decreased to AUD6.5 million having
fully discharged the funding facility held with an entity managed
by The Lind Partners ("Lind"), which was settled through a cash
payment of AUD1.625 million and the issue of 144,444,445 fully paid
ordinary shares in Blackham. Debt as at 31 December 2019 was
comprised of the loan payable to MACA (face value of AUD6.2
million) and leases (AUD0.3 million). In addition, total trade and
other payables reduced by AUD11.0 million for the period.
The Lake Way Transaction was completed in early October 2019,
with AUD8 million of the total AUD10 million contribution to
Williamson mining incurred as at 31 December 2019. During the
Dec'19 quarter Salt Lake Potash also exercised its option to
acquire the Southern Borefield infrastructure for consideration of
AUD3 million. The consideration is payable before 30 June 2020.
Gold sold during the half-year was 38,236oz @ AUD1,984/oz. There
were 2,000oz of forward gold sales contracts in place at 31
December 2019, at an average price of AUD2,162/oz, maturing 31
January 2020. In addition, Blackham has purchased further revenue
protection via put options, which provide the Group the right (but
not the obligation) to sell 24,000oz at a minimum price of
AUD2,019/oz between Jan'20 and Jun'20 inclusive.Post the reporting
period, n 28 February 2020, Blackham announced that it has recently
implemented additional hedging activities, with gold forward sales
contracts for 6,000oz at an average price of AUD2,328/oz, maturing
by 30 April 2020. Blackham also has additional revenue protection
via put options, which provide the company the right (but not the
obligation) to sell 20,000oz at a minimum price of $2,018/oz
between Feb'20 and Jun'20 inclusive.
Weatherly International Plc ("Weatherly") (In
Administration)
Weatherly has a diverse portfolio of base metal production and
development assets with multiple low capital spend growth
opportunities. These include the Tschudi Mine, the Otjihase and
Matchless mines (together, "Central Operations") and the Berg Aukas
project in Namibia.
On 1 June 2018, Weatherly announced that as a result of this
material uncertainty, Orion Mine Finance (Master) Fund I LP
("Orion") had confirmed they were unlikely to permit further
drawdowns under the existing uncommitted loan facility with Orion.
Weatherly's Directors considered that no further reliance could be
placed on Orion supporting the company financially and therefore
sought to temporarily suspend the company's shares from trading on
AIM and seek advice in relation to administration. Subsequently, on
the same day, the company announced the appointment of Simon
Kirkhope and Andrew Johnson of FTI Consulting LLP as administrators
to the company.
Following the appointment of the Administrators and the
subsidiary board changes, the position of the Tschudi mine
stabilised and the Administrators extended the Numis and Treadstone
engagement to act as Merger and Acquisition Advisers ("M&A
Advisers") to recommence the sales process effective 24 September
2018. Despite over 90 parties being contacted and a number of
indicative offers received, no sale was forthcoming and
arrangements with Numis and Treadstone ceased in December 2018.
It is understood further expressions of interest have been
received for both share sales and asset sales via direct
third-party introductions. However, at this time it is not clear
whether a potential transaction will be structured as a business
and assets sale or the sale of the shares of OML - the subsidiary
that owns and operates the Tschudi mine.
The Administrators report that there is anticipated to be a
shortfall to the company's creditors, and as such there will not be
a return to the company's shareholders.
N imini Holdings Limited ("Nimini")
Polo's Annual Report 2018 explained that despite the
considerable lobbying efforts by our in-country representative who
is a Director of our local subsidiary Nimini Mining Limited, the
Nimini Project's mining licence was cancelled at the end of August
2018. Polo remains disappointed by the Government of Sierra Leone's
action in cancelling the mining licence and has written to the
President and the Minister of Mines and Mineral Resources ("MoM")
appealing for the decision to be reversed. Polo has also suspended
any further expenditure on the Project. Nimini Holdings Ltd and its
Sierra Leone subsidiaries have since been dissolved during
2018-19.
In the meantime, following the termination of the Operator
Agreement with our joint venture partner Plinian and under the
terms and conditions of this agreement and other supplementary
agreements Polo is pursuing recovery of a loan amounting to
USD4,182,717.28 (with interest calculated to 22 July 2019) from
Plinian Guernsey Limited ("Plinian Guernsey"), a company owned by
Plinian Capital Limited ("Plinian Capital") and both controlled by
Bradford A. Mills.
Efforts by the Company to recover this outstanding loan
including demand letters from Polo and the Company's lawyers to the
principals of Plinian Capital and Plinian Guernsey have been
futile.
Polo was notified that the "sole shareholder" of Plinian
Guernsey had voluntarily put Plinian Guernsey in liquidation and
that as an identified "potential stakeholder", Polo was invited to
provide "proof of debt owed". Polo has responded to the joint
voluntary liquidators as well as informed them that, as noted in an
RNS made by West African Minerals Corporation on 11 February 2016,
Plinian Guernsey had transferred its assets to Plinian Capital,
which in Polo's view may otherwise have been used to repay sums
outstanding under agreements with Polo. The directors of Polo have,
in the interest of prudence, provided a full impairment against the
recoverability of the outstanding loan.
Details of the agreements with Plinian were contained in a Polo
RNS on 22 March 2012 entitled "Appointment of Plinian Capital
Limited as Operator of Nimini Gold Project - Plinian Acquires 10
per cent Interest for USD2.5 million". Amongst others, Polo
announced that it had provided Plinian Guernsey a loan amounting to
USD2.5 million, accruing interest at 3% above LIBOR per annum, and
that Plinian Capital was appointed operator of the project.
While Polo views the actions of Plinian as an intentional
maneuver to evade liability, the door remains open to negotiating a
settlement pending the preparation to commence court proceedings
against Plinian Guernsey and its principals to pursue the recovery
of the outstanding sums on behalf of its shareholders.
Universal Coal Resources Pte Ltd ("Universal")
In May 2016 , Polo's subsidiary, PIL, entered into a secured
SGD5 million (USD3.79 million) nominal value 15% redeemable
convertible note ("Note") with Universal Coal Resources Pte Ltd
("Universal").
Universal is incorporated in Singapore and itself had entered
into a conditional agreement to acquire an indirect 75% interest in
PT Transcoal Minergy Coal Project ("TCM"), a company incorporated
in Indonesia, from a Pan Asia Corporation Ltd. (ASX: PZC)
subsidiary.
The company failed to list on the Singapore Stock Exchange and
is now considering other areas of asset realisation, including
repayment of the loan note by way of asset transfers. Efforts are
continuing to resolve the matter.
Polo's current portfolio includes:
Petroleum assets:
-- Hibiscus Petroleum Limited (8.75%)
-- Regalis Petroleum Limited (12.66%)
Coal and power assets:
-- GCM Resources Plc (15.57% )
-- Universal Coal Resources Pte Ltd (redeemable convertible note)
Phosphate asset:
-- Celamin Holdings Limited (18.23% )
Lithium, iron and vanadium:
-- PRISM Diversified Ltd (19.13% )
Gold assets:
-- Blackham Resources Limited (0.44% ) (diluted following a rights issue and new share issue)
Copper asset:
-- Weatherly International Plc (5.2%)
Various liquid short-term investments.
To conclude, I would like to take this opportunity to thank all
our shareholders and partners for their continued support.
Datuk Michael Tang, PJN
Executive Chairman
30 March 2020
For further information, please contact:
Polo Resources Limited
- Kudzayi Denenga, Investor Relations +27 (0) 787 312 919
Allenby Capital Limited (Nominated
adviser & broker)
- John Depasquale +44 (0)20 3328 5657
About the Company
Polo Resources Limited is a multi-sector investment company
focused on investing in undervalued companies and projects with
strong fundamentals and attractive growth prospects. For complete
details on Polo, please refer to: www.poloresources.com
Investment Update
Oil and Gas
Hibiscus Petroleum Berhad (HIBI: MK)
-- Oil and Gas, United Kingdom and Australia
-- 8.75% equity interest
Hibiscus Petroleum has activities in the following principal
areas:
1. Anasuria Hibiscus: Hibiscus Petroleum's investments and
operations in the U.K, consisting of (i) the Anasuria Cluster, a
producing asset, and (ii) Marigold and Sunflower fields, a
development asset, both located offshore in the United Kingdom
Continental Shelf ("UKCS").
Anasuria Cluster: Hibiscus Petroleum's investment in 50%
interest in the License No. P013 containing the Guillemot A, Teal
and Teal South producing fields, 19.3% participating interests in
the License No. P185 containing the Cook producing field, 50%
interest in the Anasuria Floating, Production, Storage and
Offloading vessel ("FPSO"). and 50% interest in the Anasuria
Operating Company Limited ("AOCL"). The company jointly operates
the producing fields under License No.P013 and the Anasuria FPSO
via AOCL.
Marigold and Sunflower fields: Hibiscus Petroleum's investment
in 50% interest in two blocks under License No. P198; (i) Block
15/13a, containing the Marigold discovered oilfield, and (ii) Block
15/13b, containing the Sunflower discovered oilfield. This includes
the management of operations to develop these fields towards
production.
Crown : Hibiscus Petroleum's investment in 100% interest in 100%
interest in Blocks 15/18d and 15/19b (Licence P2366), also in the
North Sea, in close proximity to the Marigold and Sunflower, and
includes the Crown discovered field.
2. North Sabah: Hibiscus Petroleum's investment in 50%
participating interests in the 2011 North Sabah EOR PSC, which
includes the management of operations relating to the production of
petroleum from four existing oil fields, namely St Joseph, South
Furious, SF30 and Barton and existing pipeline infrastructure, the
Labuan Crude Oil Terminal ("LCOT"), and all other equipment and
assets relating to the PSC.
3. VICL/31, VICP/57, 3D Oil: Hibiscus Petroleum's operations in
the production licence VIC/L31 for the West Seahorse field and
other exploration prospects in Australia within exploration permit
VIC/P57, and investment in 3D Oil.
United Kingdom North Sea
Anasuria Cluster: Production Operations
As of 31 December 2019, the company's indirect wholly-owned
subsidiary, Anasuria Hibiscus UK Limited ("Anasuria Hibiscus UK")
has been involved in the joint operations of the Anasuria asset for
over three years. Figure 1 shows the operational performance
achieved by the asset, based on Anasuria Hibiscus UK's 50%
participating interest, for the Current Quarter, as well as for the
prior three financial quarters:
Oct. - Dec. Jul. - Sept. Apr. - Jun. Jan. - Mar.
Units 2019 2019 2019 2019
Average uptime % 85 77 87 71
---------- ------------- -------------- ------------- -------------
Average daily oil
production rate bbl/day 2,680 2,386 2,662 2,504
---------- ------------- -------------- ------------- -------------
Average daily gas
export rate @ boe/day 288 204 390 274
---------- ------------- -------------- ------------- -------------
Average daily oil
equivalent production
rate boe/day 2,968 2,589 3,053 2,778
---------- ------------- -------------- ------------- -------------
Total oil sold bbl 249,704 272,345 302,139 249,116
---------- ------------- -------------- ------------- -------------
Total gas exported
(sold) mmscf 159 112 213 148
---------- ------------- -------------- ------------- -------------
Average realised oil
price USD/bbl 68.67 58.41 66.84 60.39
---------- ------------- -------------- ------------- -------------
Average gas price USD/mmbtu 1.62 / 4.02 1.04 / 2.52 1.42 / 3.39 2.63 / 5.98
(#) (#) (#) (#)
---------- ------------- -------------- ------------- -------------
Average OPEX per boe USD/boe 22.64 26.04 20.93 23.27
---------- ------------- -------------- ------------- -------------
Figure 1: Operational performance for Anasuria.
Notes to Figure 2:
@ Conversion rate of 6,000 standard cubic feet ("scf") per
boe.
For Cook field.
# For Guillemot A, Teal and Teal South fields.
boe - bbl of oil equivalent. mmscf - million standard cubic
feet. mmbtu - million British thermal units.
The average uptime and average daily oil equivalent production
rate at the Anasuria asset achieved for the Current Quarter of 85%
and 2,968 boe per day exceeded that of the Preceding Quarter. One
crude oil offtake was conducted at Anasuria during the Current
Quarter, in which 249,704 bbls of oil net to Anasuria Hibiscus UK
was sold at an average realised oil price of USD68.67 per bbl. The
average OPEX per boe in Anasuria for the Current Quarter was
USD22.64 per boe, which is lower than USD26.04 per boe in the
Preceding Quarter.
In October 2019, a diving campaign to conduct well inspections
and maintenance, as well as to install a gas lift jumper to the
recently drilled GUA-P1 side-track well, was successfully executed.
Whilst production was partially impacted, the gas lift jumper will
allow future production from the GUA-P1 side-track well to be
enhanced once the company commences gas lifting the well.
After the diving campaign, an extensive well test programme was
undertaken in November 2019 to identify the optimal well
configuration with focus on the Guillemot A field. The production
from this field is currently limited due to a bottleneck in the
existing subsea infrastructure. The well test programme, the first
extensive flow trial since the acquisition of Anasuria, achieved
its objective as an optimal well configuration has been identified.
Furthermore, data obtained is being used in the assessment to
debottleneck the Guillemot A subsea infrastructure ("Subsea
Debottlenecking Project").
Operationally, a significant review of the company's operating
strategies, maintenance systems, and organisational capability is
underway as part of an overall initiative to carefully manage
costs. Planning is ongoing for a 40-day offshore turnaround of the
Anasuria FPSO in FY2021 to improve the reliability and integrity of
the Anasuria FPSO as well as to continuously ensure a safe working
environment. Several minor production enhancement projects are also
included in the scope of this turnaround.
In the Current Quarter, Anasuria Hibiscus UK invested
approximately RM16.5 million (USD3.76 million) in capital
expenditure in the Anasuria Cluster which is primarily attributed
to the GUA-P1 Side-Track Project as well as for the upgrade and
replacement of facilities related to the Anasuria FPSO.
United Kingdom North Sea - Anasuria Cluster: Cook Water
Injection Project Update
Anasuria Hibiscus UK together with its partners in the Cook
field had, in May 2018, sanctioned the Cook WI project. Ithaca is
the operator of the Cook field. This project involved the drilling
of a water injection well into the Cook field to increase its
reservoir pressure. It is expected that an increased reservoir
pressure will result in an improved oil and gas production rate as
well as an improved recovery of hydrocarbons from this field.
The water injection well was completed as planned on 25 May
2019. Subsequently, the installation of a subsea pipeline to link
the water injection well to the Anasuria FPSO was carried out in
the Current Quarter and injection of water into the Cook field
reservoir commenced on 3 October 2019. The total capital
expenditure net to Anasuria Hibiscus UK estimated for this project
is RM52.0 million.
In December 2019, the injection of water ceased due to a failure
of a subsea component. Ithaca, the operator of this field, is
currently undertaking an investigation into the root cause of the
failure and will provide an update to the Cook joint-venture on the
way forward in due course. At this point in time, production from
the Cook field is still continuing.
United Kingdom North Sea - Anasuria Cluster: GUA-P1 Side-Track
Project Update
The GUA-P1 Side-Track project ("GUA-P1 ST") was an opportunity
to re-enter the existing GUA-P1 wellbore and drain additional
volumes of hydrocarbons from the Guillemot A field. Operations on
GUA-P1 ST commenced in May 2019 and subsequently completed in
August 2019. Additionally, the final scope of this project to
install a gas lift jumper to enhance production was conducted as
part of a diving campaign executed in October 2019. Since
completion of the project, the well has been placed in production
and is being monitored for sand and H2S production. More recently,
gas lifting of this well has also commenced. The total capital
expenditure net to Anasuria Hibiscus for this project was
approximately RM97.1 million (USD11.90 million).
United Kingdom North Sea - Marigold Cluster
On 17 October 2018, the Group announced that its indirect
wholly-owned subsidiary, Anasuria Hibiscus UK, had completed the
transaction to acquire a 50% interest in the UK Continental Shelf
Petroleum Production Licence No. P.198 Block 15/13a and Block
15/13b (collectively referred as "Blocks") from Caldera Petroleum
(UK) Ltd for a purchase consideration of USD37.5 million. The
Blocks are located offshore, in 140 meters water depth, in the UK
sector of the North Sea, approximately 250km northeast of
Aberdeen.
On 12(th) December 2019, the Group announced that Anasuria
Hibiscus UK completed the Sale and Purchase Agreement ("SPA") to
acquire 100% interest in Blocks 15/18d and 15/19b (Licence No.
P2366) containing the Crown oil and gas discovery from United Oil
and Gas Plc ("United") and Swift Exploration Ltd. ("Swift") for a
total cash consideration of up to USD5.0 million, to be paid based
on a combination of a series of milestones and an overriding
royalty scheme.
The Group has defined the Marigold Cluster to currently include
the following licenses (and fields):
-- P198 - Block 15/13a (Marigold Discovery);
-- P198 - Block 15/13b (Sunflower Discovery); and
-- P2366 - Blocks 15/18d and 15/19b (Crown Discovery).
Block 15/13a contains a significant oil-bearing discovered field
("Marigold"), whilst Block 15/13b which lies northeast of Block
15/13a contains a smaller discovered field ("Sunflower"). Based on
an independent report by AGR TRACS International Limited (which was
conducted as part of the due diligence exercise to acquire the
Blocks in October 2018), 2C Resources in the Blocks is estimated to
be 60.0 million bbls of oil (30.0 million bbls of oil net to
Anasuria Hibiscus UK). The company is currently performing
Independent Reserves Assessments of Marigold, Sunflower and Crown
and expects to make further disclosure regarding the Marigold
Cluster 2C Resources once these assessments have been
completed.
Hibiscus was appointed Exploration Operator of the Blocks
effective 12 February 2019 and ahead of the 31 March 2019 target
date set by the UK Oil and Gas Authority ("OGA"). A dedicated
project team, located in Kuala Lumpur with a modest presence in
Aberdeen, Scotland, has been established to execute the project.
The project team has been tasked to conduct the subsurface field
development and engineering studies and, with the support of
third-party contractors, execute the project.
The first project phase called "Concept Select" has been
completed. The selected concept will develop the fields via
directionally and horizontally drilled subsea wells tied back to a
Floating Production, Storage and Offloading Facility ("FPSO") with
flexible flowlines and control umbilicals. This concept was
approved by the OGA on 15 October 2019.
Since that time, an expanded project team has been finalising
the field development plan and conducting Front End Engineering
Design ("FEED") studies to establish a field development plan,
environmental impact assessment and production facilities required
for the development. The project will be executed in two phases to
reduce project risks due to subsurface uncertainties. The first
phase of the development will involve the drilling of three subsea
wells in Marigold alone and if this development phase is successful
will result in a second project phase where additional wells will
be drilled in Marigold. Other fields including Sunflower and Crown
will be also be drilled and tied back to the FPSO. A final
investment decision and regulatory approvals for Marigold Project
Phase 1 are expected by the end of CY2020.
Licence No. P2366 is located offshore in the UK sector of the
North Sea, approximately 250km northeast of Aberdeen and 12km
southeast of the Marigold field, and includes the Crown discovered
field which consists of 2C Resources of between 4 to 8 million bbls
of oil, subject to an independent third-party expert's
assessment.
The rationale for this transaction was to secure additional 2C
Resources (from the Crown discovery) at a competitive unit cost per
barrel and integrate these contingent resources as part of the
Marigold area-wide development with the objective of reducing
overall unit development and production costs
Malaysia South China Sea
North Sabah PSC: Production Operations
The table below provides a summary of key operational statistics
for the North Sabah asset, based on SEA Hibiscus' 50% participating
interest, for the Current Quarter as well as for the prior three
financial quarters:
Oct. to Jul. to Apr. to Jan. to
Unit Dec. 2019 Sept. 2019 Jun. 2019 Mar. 2019
(2)
Average uptime % 93 85 94 95
-------- ------------ ------------- ------------ ------------
Average gross oil
production bbl/day 17,076 14,234 14,873 14,651
-------- ------------ ------------- ------------ ------------
Average net oil
production bbl/day 6,318 5,194 5,057 4,801
-------- ------------ ------------- ------------ ------------
Total oil sold bbl 671,452 334,613 490,753 578,487
-------- ------------ ------------- ------------ ------------
Average realised
oil price (1) USD/bbl 70.19 63.63 72.59 67.87
-------- ------------ ------------- ------------ ------------
Average OPEX per
bbl (unit
production cost) USD/bbl 12.23 15.33 13.60 11.77
-------- ------------ ------------- ------------ ------------
Figure 2: Operational performance for the North Sabah asset.
Notes to Figure 2:
1. The average realised oil price represents the weighted
average price of all Labuan crude sales from SEA Hibiscus.
2. Figures for the period October 2019 to December 2019 are
provisional and may change subject to
the PSC Statement audit and that they are pending Petroliam
Nasional Berhad ("PETRONAS")'s review.
The average uptime of the North Sabah production facilities of
93%, achieved during the Current Quarter, is higher when compared
to the Preceding Quarter due to the resumption of normal operations
following the planned shutdown for maintenance activities in the
previous quarter. Consequently, average gross oil production
increased by approximately 20% during the Current Quarter. The
increase in average gross oil production was also due to new oil
production from the Saint Joseph Infill Drilling and South Furious
30 Infill Drilling projects.
Two crude oil offtakes were conducted in the North Sabah asset
in the Current Quarter with a total of 671,452 bbls of oil net to
SEA Hibiscus sold at an average oil price of USD70.19 per bb.
Average OPEX per bbl for North Sabah decreased to USD12.23 per
bbl when compared to the Preceding Quarter primarily due to higher
production volumes and lower production OPEX.
In terms of capital expenditure, the North Sabah asset incurred
approximately RM50.8 million (USD11.62 million) (net to SEA
Hibiscus) during the Current Quarter attributable to the South
Furious 30 Infill Drilling and South Furious 30 Water Flood Phase 1
projects.
North Sabah PSC: South Furious 30 Infill Drilling
PETRONAS had on 1 July 2019 approved the South Furious 30 Infill
Drilling project development plan intended to increase production
and reserves of the South Furious 30 field. Three wells were
drilled from the South Furious Jacket-C ("SFJT-C") via the
remaining conductor slot.
The first two wells were successfully completed and brought
online, with the first well, SF30-2, producing its first oil on 8
October 2019. The well was tested at approximately 1,100 bbls per
day, with the production choke at 38/64 setting and no indications
of water or sand production at surface. The second well, SF30-4,
was brought online on 26 October 2019 with an initial well test of
480 bbls per day. The third well, SF30-6, was drilled in October
and was found to be wet. Subsequently, a sidetrack well, SF30-6ST1
was drilled in November following the drilling of the South Furious
30 Water Flood Phase 1 infill water injector. The sidetrack well
found hydrocarbons but the well remains suspended pending the
completion of the South Furious 30 Water Flood Phase 1 project. The
total cost of the project was RM129.2 million (USD29.56 million),
which was shared equally with its joint venture partner.
North Sabah PSC: South Furious 30 Water Flood Phase 1
PETRONAS had on 17 October 2019 approved the South Furious 30
Water Flood Phase 1 project development plan which entails the
drilling and completion of one infill water injection well intended
for reservoir re-pressurisation to scope out the effectiveness of
water injection pressure support to help further define the full
field water injection project. Topside modification entailed deck
strengthening and extension works.
Following the completion of the drilling of the water injector
in November, topside modification work was carried out during the
Current Quarter. Due to adverse weather and additional work scope,
completion of the project is now expected by March 2020. The total
capital expenditure is estimated at RM55 million (USD12.58 million)
and will be shared equally with its joint venture partner. Of the
RM 55 million (USD12.58 million) total, RM 44 million (USD10.07
million) was spent up to 31 December 2019, with the remaining
RM11.0 million (USD2.52 million) to be spent in the next financial
quarter.
Topside modification works are progressing smoothly, with first
water injection expected in February via a Portable Water Injection
Module ("PWIM"), which will be under a two-year lease to SEA
Hibiscus.
North Sabah PSC: 2020 Drilling Program
SEA Hibiscus is currently working towards maturing its 2020
drilling program which comprises infill wells at the Saint Joseph
field, targeting the Major and Minor Sands. More information will
be disclosed in the company's next Quarterly Report.
Australia - Bass Strait
The Group has interests in three licenses located in the Bass
Strait of Australia of which we operate two; VIC/L31 and VIC/P57.
In addition, Hibiscus has a 11.68% interest in 3D Oil Limited ("3D
Oil"), a company listed on the Australian Stock Exchange
("ASX").
Bass Strait Cluster: VIC/L31 Production License
Retention Lease application was submitted on 4 December 2018.
However, discussions are ongoing with NOPTA on whether to maintain
the existing Production License or continue the application for a
Retention License. The decision will be dependent on discussions
with nearby infrastructure owners on the potential to tieback the
West Seahorse field.
Bass Strait Cluster: VIC/P57 Exploration License
The Minimum Guaranteed Work Programme has been completed and.
two key prospects have been identified, the first being Felix, with
a best estimate prospective resources of gross 30 million bbls of
oil, and the second being Pointer, with a best estimate prospective
resources of gross 170 billion cubic feet of gas. A process to farm
out the block for a carry on a well to be drilled in 2021/2022 is
ongoing.
Bass Strait Cluster: VIC/P74 Exploration License
On 26 July 2019, the Group announced that 3D Oil has been
awarded the VIC/P74 Exploration Permit in the offshore Gippsland
Basin by the National Offshore Petroleum Titles Administrator
("NOPTA"). VIC/P74 spans an acreage of 1,006 km2 which is located
on the southern side of the Gippsland Basin. Under the terms of a
pre-bid agreement, the Group has elected to enter into a joint
venture with 3D Oil for a 50% working interest in this permit on a
ground floor basis. 3D Oil will be the Operator through the Primary
3-year Prospect Generation Term and is currently undertaking
Geoscience studies of the Permit.
Investment in 3D Oil: T/49P Exploration Licence
Post the reporting period, on 26 March 2020, 3D Oil announced
that ConocoPhillips Australia SH1 Pty Ltd ("ConocoPhillips
Australia") and TDO's wholly owned subsidiary, 3D Oil T49P Pty Ltd
have executed a Joint Operating Agreement ("JOA") in relation to
the offshore Tasmanian Permit T/49P ("Permit") which satisfies a
key condition of the Farmout Agreement ("FOA") signed in December
2019. Completion of the farmout will occur following government
approvals.
Under the terms of the JOA, ConocoPhillips Australia will hold
an 80% interest in the Permit and become operator. As previously
announced, pursuant to the FOA, the company will receive a AUD5
million cash payment in recognition of previous permit expenditure
and ConocoPhillips Australia will undertake the acquisition of a 3D
seismic survey of not less than 1580 sq km within the Permit to
which the company will make no financial contribution.
Under the terms of the original FOA, TDO were to retain 25%
equity in T/49 however following further negotiations the company
has decided to reduce its interest in the Permit to 20%. This is in
exchange for a reduction in TDO's exposure to joint operation
expenses. Under the terms of the revised FOA and JOA, TDO will
contribute 10% of the joint operation expenses until ConocoPhillips
Australia has completed an exploration well or spent at least US$30
million toward drilling of an exploration well.
Upon completion of the acquisition, processing and
interpretation of the 3D seismic survey, ConocoPhillips Australia
may elect to drill an exploration well which will fulfill the
current Year 6 Permit work commitment. In the event ConocoPhillips
Australia elects to drill such exploration well, the Company will
be carried for up to USD30 million in drilling costs after which it
will contribute 20% of costs in line with its interest in the
Permit.
On 20 March 2020, Hibiscus' share price closed at MYR0.32 with a
market capitalisation of USD 115.14 million (MYR/USD = 0.22654
).
Regalis Petroleum Limited
-- Oil, Republic of Chad
-- 12.66% equity interest
Polo's interest in the private and independent oil and gas
company, Regalis Petroleum Limited ("Regalis") increased to 13.67%
following an in-specie distribution by Polo's 42% owned associate,
Signet Petroleum Nigeria Limited and transfers from other Signet
shareholders.
Regalis has interests in three highly prospective onshore
exploration blocks in the Republic of Chad. Regalis completed a
5,349 kilometre airborne gravity/magnetic survey over Blocks DOA
and WD2-2008 which are on trend with existing and recent
Glencore/Caracal discoveries.
However, Polo has recorded an impairment charge of USD14.8
million in the previous financial year on the carrying value of its
investment in Regalis as no further progress has been made by
Regalis in pursuing its exploration strategy.
Coal
GCM Resources Plc (AIM: GCM)
-- Coal and Power Project, Bangladesh
-- 15.57% equity interest
GCM Resources plc ("GCM") has made huge strides towards
delivering a comprehensive Power Solution to the Bangladesh
Government based on a 15 million tonne per annum "captive" coal
mine in the Phulbari Coal Basin, feeding power plants with a
combined capacity 6,000MW utilising highly energy-efficient
Ultra-supercritical boiler technology.
The progress can be measured by the fact that in this reporting
period GCM has successfully formed joint-venture arrangements with
internationally renowned PowerChina for the delivery of 4,000MW of
mine-mouth power plants (in two x 2,000MW stages). This combined
with the 2,000W previously agreed with CGGC provides the necessary
6,000MW "power plant market" to take the full production from the
"captive" Phulbari coal mine, thus ensuring economic sustainability
of the Phulbari Coal and Power Project ("the Project"). By the end
of the reporting period PowerChina and GCM had also completed the
full Proposals adhering to Bangladesh Power Development Board
requirements for the Phase I and Phase II being each 2,000MW
amounting to a total of 4,000MW.
Also, in the reporting period, GCM entered into an MOU with
PowerChina and NFC (China Non-ferrous Metal Industry's Foreign
Engineering and Construction Co. Ltd) to assist with development of
the Phulbari coal mine itself. NFC successfully completed their Due
Diligence studies at the end of 2019 and the company was expecting
to move to a formal joint venture arrangement in early 2020,
however this timeline has been affected by the various governments'
actions to deal with the COVID-19 pandemic.
GCM has also announced on 26 March 2020 that it had drafted the
Phulbari Coal and Power Project Proposal for submission to the
Bangladesh Government and that it was working with its local
Consultant / Lobbyist, DG Infratech, make it ready for submission
to the Bangladesh Government.
The GCM Project is in the league of "Mega Projects" in that it
will mobilise some US14.5 Billion Foreign Direct Investment to
deliver the Project in its entirety. Noting that it's not just
about mine and power plants but also brings major "Local and
Regional Development" with huge job creation, a new township, new
villages, roads, rail, industrial development based on stable and
expansive power supply, reticulated water supplies and free water
for irrigation schemes, snatiation systems and many other improved
community amenities.
Other steps taken by GCM in 2020 include:
-- Securing the continuing support of Polo Resources Ltd by way
of the extension of the loan agreement to ensure funding for a
further 12 months.
-- Agreeing extension of the memorandum of understanding with
China Nonferrous Metal Industry's Foreign Engineering and
Construction Co., Ltd. and Power Construction Corporation of China,
Ltd. for a further three months through into April 2020, on the
same terms as previously announced.
-- Agreeing the extension of the Joint Venture Agreement and
definitive Engineering, Procurement and Construction Contract with
PowerChina, for a further 12 months, to 17 January 2021, on the
same terms as previously announced.
Funding arrangements:
Post the reporting period, on 3 February 2020, GCM announced it
had agreed a GBP1.2 million increase to its existing loan facility
of GBP2.3 million with Polo Resources Limited.
Prior to this amendment, the Polo Facility allowed the company
to borrow up to GBP2.3 million, to be repaid within 90 days upon
request and attracting an interest rate of 12% per annum. As set
out in GCM's Annual Report and Accounts for the year ended 30 June
2019, the existing Polo Facility had been fully drawn down. The
revised terms provide for an increase in the Polo Facility amount
by GBP1.2 million (up to an aggregate of GBP3.5 million), which can
be drawn down by the company in equal quarterly instalments of
GBP300,000. As set out in GCM's announcement, of 30 November 2018,
Polo will have the right to convert the outstanding loan balance
and accrued interest to new ordinary shares of 10p each in the
company's capital ("Ordinary Shares") at a price of 11p per share,
within 14 days upon request. Any issue of new Ordinary Shares to
Polo is conditional upon its interest, together with the interest
of any parties with which it is in concert, remaining below 30% of
the company's issued share capital. All other principal terms of
the Polo Facility remain unchanged.
On 20 March 2020, GCM's share price closed at GBP0.095 with a
market capitalisation of USD12.33 million (GBP/USD = 1.15497).
Universal Coal Resources Pte Ltd
-- Coal Project, Indonesia
-- Redeemable convertible note
In May 2016, Polo's subsidiary, PIL, entered into a secured SGD5
million (USD3.79 million) nominal value 15% redeemable convertible
note ("Note") with Universal Coal Resources Pte Ltd
("Universal").
Universal is incorporated in Singapore and itself had entered
into a conditional agreement to acquire an indirect 75% interest in
PT Transcoal Minergy Coal Project ("TCM"), a company incorporated
in Indonesia, from a Pan Asia Corporation Ltd. (ASX: PZC)
subsidiary.
Universal was targeting a Singapore Stock Exchange Catalist
Board listing and the Note entitles Polo to convert the principal
outstanding plus any accrued interest into not less than 20% of the
share capital of Universal as enlarged by such a conversion at any
time up to 18 months from draw-down, or earlier upon the receipt of
approval in principle to list. The Note is repayable 18 months from
draw-down unless previously converted.
Pursuant to the terms of the Note, a key action for Universal
was to obtain approval from Pan Asia's shareholders for the
disposal of TCM to Universal within three months from the date of
the Note. As at the date hereof, this approval has not been
obtained and a default of the terms of the Note remains. PIL has
served notice on Universal and the parties who provided security,
namely PZC and Mr. Boelio Muliadi, and is currently in discussions
with them on a without prejudice basis for an amicable resolution,
in parallel with PZC's endeavours to dispose TCM to an
investor.
PZC announced that it is progressing the potential cash sale of
its interests in TCM and that Polo will be repaid from the proceeds
of sale. The transaction is still subject to certain conditions
precedent including due diligence, approval from PZC shareholders
and any approvals required from regulatory and other bodies.
TCM Coal Project:
TCM is the owner of a Production Operation Mining Business
Licence for a mining concession in South Kalimantan Province,
Indonesia. Their focus is the development of a two million tonnes
per annum underground mine delivering a high-quality Bituminous
Coal saleable product of some 6,200 kcal/kg specific energy (GAR -
Gross as Received). The current JORC Resource of 129Mt (measured,
indicated and inferred) has been derived from the southern area of
the concession and there is potential to upgrade and increase the
resource base through drilling the northern area. TCM's production
permit extends to April 2028. Further drilling and a full final
feasibility study are required to be completed and forestry
approval obtained prior to commencement of mine development. The
TCM Coal Project will utilise existing coal transportation
infrastructure including a 50 kilometre haul road to the river port
at Batulicin, a major coal shipping centre.
Phosphate
Celamin Holdings NL (ASX: CNL)
-- Phosphate, Tunisia
-- 18.23% equity interest
Chaketma Phosphate Project - 100% CPSA
(International arbitration and enforcement in Tunisia confirmed
Celamin's 51% interest in CPSA and awarded USD4m in damages)
The Chaketma Phosphate Permit, operated by CPSA, is a potential
large-scale phosphate development asset, which comprises six
prospects over a total area of 56km(2) . It hosts a total JORC
compliant Inferred Resource of 130Mt @ 20.5% P O , confirmed from
drilling at only two of the project's six prospects.
Tenement, Location and Access
The Chaketma permit is located 210 km south-west of Tunis by
road. The bulk of the phosphate is located at the base of a massive
limestone unit close to the top of a high segmented plateau, which
rises approximately 600m above the valley floor. This plateau
extends for approximately 12 kilometres from north to south, and
from 900 in 1,200 metres width.
The plateau is divided into distinct domains or prospects by a
series of normal faults. The Chaketma Phosphate Project is located
35km from the nearest railhead which connects to the Port of
Goulette/Rades for export. Tunisia is a major phosphate producer
and exporter, and has existing infrastructure including extensive
road, rail and energy networks.
Geology of Chaketma
The Chaketma Project is characterised by an exclusively marine
sedimentary sequence of shallow shelf carbonates, sandstones and
deeper marine clays and marls, dating Cretaceous to Miocene. The
dominant stratigraphic sequence from top to bottom comprises a
massive dolomite limestone of Lutetian age, followed by the
Ypresian phosphate suite and then a gradational transition to
Paleocene Marls. The top of the phosphate suite is a phosphatic
dolomite / dolomitic phospharenite, quickly grading down to a
high-grade medium-grained phospharenite. Grain size decreases and
marly intercalations gradually increase towards the bottom of the
sequence, before passing into thicker marls.
Significant Milestones
Celamin has made significant in-roads into the exploration and
development of its flagship Chaketma Phosphate Project in Tunisia.
Significant milestones achieved include:
-- A Scoping Study successfully completed by Direct Mining
Services Pty Ltd in August 2012 based on Exploration Targets.
Positive results were received for both the technical and economic
components of the project.
-- Release of Maiden JORC Resource for the Kef El Louz North
Prospect (one of the six target prospects within the Chaketma
project area) by Independent consultants, Geos Mining of 37Mt of
rock phosphate at a grade of 21.0% P O , using 10% P O cut-off
grade. Geos Mining has indicated that only limited additional work
would be required to upgrade the majority of this resource to the
Indicated category.
-- An initial Inferred JORC Resource of 93Mt at a grade of 20.3%
P O has been announced for Gassaa Kebira, the second of six
prospects at the Chaketma Project.
-- Global Inferred Resource inventory now stands at 130Mt at a grade of 20.5% P O .
-- Potential confirmed for long-life project: 35+ years.
Metallurgical test work produced a concentrate grading 31% P O .
Metallurgical optimisation test work to date confirms that a
marketable concentrate can be produced with very good phosphate
recoveries.
Development Options
Celamin has two development options:
1. Rock Phosphate Export Mine
-- Significant work already confirms potential for simple rock
export operation
-- 2012 Scoping Study to be updated with revised metallurgy from
2014 test work
2. PyroPhos (TM) Process Route
-- Integrated chemical fertilizer project producing lowest
quartile DAP
-- Minimal water use
-- Saleable inert waste product
-- Scoping Study to be completed
Following enforcement allowing Celamin to recover control of the
Chaketma Phosphate Project C elamin plans to:
-- Introduce an international partner to facilitate funding discussions;
-- Commence a feasibility study to determine the viability of
producing either rock phosphate or chemical fertiliser. Celamin is
contemplating these development options all in the backdrop of a
rising rock phosphate price.
Djebba Zinc-Lead Project, Tunisia - Historical Resource
Estimate:
In July 2018 Celamin was granted two new exploration permits in
Tunisia prospective for Zinc and Lead. The Djebba and Zeflana
permits cover 32kms in the Atlas Zinc-Lead Province that runs
through the north of the country.
Since the grant of the exploration permits, Celamin has acquired
the report on the mining study completed in 1989 by Montreal-based
consultancy, Le Groupe SIDAM-Minorex, for the Office National des
Mines ("ONM") in Tunisia and engaged CSA Global to review this
study to enable announcement of the historical resource
estimate.
The mining study, titled "Etude de faisabilité preliminaire de
l'exploitation du gite plomb-zincifere de Djebba" (Pre-feasibility
study on mining the Djebba Zinc-Lead deposit) documents historical
resource estimates and mining studies for the deposit completed in
the period 1986-89. The study was based on drilling completed by
ONM at the historical Djebba mine site which was used to estimate
and report the historical resource of 2.7Mt at 6.1% Zn and 3.3%
Pb1.
Better results from the historical ONM drilling include:
-- S-30bis 16.6m at 8.36% Zn & 1.8% Pb from 66.1m
-- MDJ2 10.45m at 17.52% Zn & 1.57% Pb from 21.85m
-- MDJ7 8.55m at 9.55% Zn & 0.81% Pb from 32.85m
Celamin cautions that this resource estimate is a historical
estimate and was not reported in accordance with the JORC Code. A
Competent Person has not done sufficient work to classify the
historical estimate as a Mineral Resource and/or Ore Reserve in
accordance with the JORC Code and it is uncertain that following
evaluation and/or further exploration work that the historical
estimate will be able to be reported as a Mineral Resource or Ore
Reserve in accordance with the JORC Code.
Subsequent to the 1989 study, additional drilling and other
exploration work was completed at Djebba by ONM (1992),
ONM-Metallgesellschaft (1993-94), VSX-listed Consolidated Global
Minerals Ltd (2001-04), and AIM-listed Maghreb Minerals
(2002-2008). Celamin is in the process of acquiring, compiling, and
assessing the available data and reports for this subsequent
work.
Celamin will now focus on validation of the historical resource
based on confirmatory drilling and target generation work to define
new targets for drill testing as this style of mineralisation can
be extensive and form large deposits.
Zeflana permit extended
Post the reporting period, on 26 February 2020, Celamin
announced that it has received confirmation that two exploration
permits contiguous with the existing Zeflana exploration permit
have been granted. Ain El Bouma covers the western extensions to
Zeflana and Zaouiet Sidi Mbarek covers the eastern extension. The
total area around Zeflana now held by Celamin amounts to 88km2.
The additional areas contiguous with the original Zeflana permit
were secured based on previous soil sampling work completed by
Zinifex and Oz Minerals that delineated multiple zinc
anomalies.
Celamin is planning to undertake mapping, soil sampling and
geophysical surveys this half ahead of identifying and prioritising
drill targets.
For further information on the Djebba and Zeflana permits,
including past ownership and historical data, please refer to ASX
releases 17 July 2018 and 31 October 2018 which can be found at
http://celaminnl.com.au/
On 20 March 2020, Celamin's share price closed at AUD0.12 with a
market capitalisation of USD10.44 million (AUD/USD = 0.57242).
(1) Celamin cautions that this resource estimate is a historical
estimate and was not reported in accordance with the JORC Code. A
competent person has not done sufficient work to classify the
historical estimate as a mineral resource and/or reserve in
accordance with the JORC Code and it is uncertain that following
evaluation and/or further exploration work that the historical
estimate will be able to be reported as a mineral resource or ore
reserve in accordance with the JORC Code.
Strategic Metals and Advanced Materials
PRISM Diversified Ltd (formerly Ironstone Resources)
-- Iron, Vanadium and Cobalt Powders, Lithium, Canada
-- 19.13% equity interest
In early 2018, Ironstone Resources Ltd. was rebranded and
renamed to PRISM Diversified Ltd. to mark the company's transition
and focus on manufacturing of metallurgical powders rather than
iron metallics. PRISM is an acronym for Peace Region Innovative
& Sustainable Manufacturing, which is also the company's
mission and brand statement.
Looking for alternative ways to capitalize on its asset, it
became apparent that manufacturing of highly sought metallurgical
powders such as carbonyl iron powders, atomized iron powders and
vanadium pentoxide could provide faster route to cash-flow while
reducing its CAPEX significantly. Technologies used to manufacture
metal powders are readily available and have existed for decades -
it is a matter of fine-tuning its process flow sheet and
determining its palette of products.
In order to facilitate the extraction/processing/production
plan, PRISM sourced and engaged an internationally recognized
engineering firm - DRA Global which has experience in this segment
of the iron world and they will work in affiliation with a proven
expert in advanced vapour metallurgy, who is credited with numerous
process patents - Dmitri Terekhov, PhD, President of Vapour
Metallurgy Innovations Inc. ("VMI"). DRA Global in conjunction with
VMI will be conducting a Pre-Feasibility Study and Bankable
Feasibility Study (with an off-ramp after the PFS) to create an
iron powders and vanadium production facility. The deposit is
anticipated to produce 30,000 tonnes per annum of iron powder,
although the modular operation can be easily expanded to meeting
the growing global demand for metal powders.
As a part of this restructuring and re-positioning of the
company, PRISM has implemented certain changes to the Management
and Board of Directors. Dr. Elena Clarici has been appointed as a
CEO, and former CEO Mr. Barry Caplan will continue to serve the
company in a consultant capacity as well as to remain on the Board
of Directors. Dr Elena Clarici is a seasoned mining professional
with some 25 years of mining investment and corporate experience.
During this time she held a number of senior positions at various
financial institutions in the City of London, focusing principally
on investment management in natural resources and emerging markets.
Elena currently serves on a number of Boards of mining companies.
Originally trained as a mining engineer she gained her PhD in
Artificial Intelligence in Mining from Royal School of Mines,
Imperial College, London, U.K.
Additional management and Board changes include the resignation
of Mr. James Masleck as CFO and from the Board of Directors. The
Chairman, Carl Berdahl has assumed an Acting CFO position, while
the company's accountant Ms Linda Warner has been appointed as
Corporate Secretary and Financial Controller.
Gold
Blackham Resources Limited (ASX: BLK)
-- Gold, Western Australia
-- Coal, Southwest Australia
-- Combined direct and indirect 0.44% equity interest (diluted
following a rights issue and new share issue)
The Matilda-Wiluna Gold Operation is located in Australia's
largest gold belt. The Operation encompasses four large gold
systems surrounding the township of Wiluna that has historically
produced of 4.4Moz of gold. In October 2016, Blackham produced
first gold from the Operation.
Highlights
-- 6-month gold production of 37,568oz
-- Profit after tax for the half-year ended 31 December 2019 was AUD23,996,000
-- All in Sustaining Costs per ounce ('AISC') for the 6 months of AUD1,524/oz
-- Operating cash flow of AUD7.3 million for the half-year
-- Significant balance sheet repair including a reduction in trade payables of AUD11m
-- Total debt reduction of AUD9.2 million including the
extinguishment of the Lind Convertible Note
-- Stage 1 Expansion Study completed
-- Rod Mill refurbishment completed
-- Further Golden Age UG extensions identified
-- Lake Way Transaction completed
Gold Production
Gold production for six months ended 31 December 2019 of
37,568oz and an AISC of A$1,524/oz was reflective of a noticeable
operational turnaround. Returns on significant investment in mine
development during the Mar'19 and Jun'19 quarters were realized in
the six-month period, with improved access to ore from both the
Matilda and Wiluna mining areas. As a result, the mill saw an
increase in the proportion of high-grade feed, with the average
processed grade for the six-month period being 1.9g/t. This
represents a 34% increase on the prior six months.
During the half-year, ore from open pit mining was accessed at a
strip ratio of 7.8:1, which compared favourably against the prior
six months (strip ratio of 12.1:1). The high grades mined from open
pits during the half-year of 1.7g/t was contributed to by higher
than expected grades in the transitional and fresh material towards
the base of the Wiluna mining areas. The metallurgical recovery
from these transitional and fresh zones was in line with
expectations, with total recovery over the half year of 79%
achieved.
Production from Golden Age Underground, the company's highest
grade free-milling ore source, was 60,136 tonnes @ 4.7g/t. Drilling
continued during the half year and is ongoing, targeting high-grade
free milling extensions, with initial results reported to the ASX
on 23 January 2020. The company continues to be successful in
extending the Golden Age Underground and is committed to a strategy
to sustain production at 10,000 tonnes or more per month, in
parallel with the free milling open pit mines.
Wiluna Stage 1 Expansion Study
On 23 December 2019, Blackham announced that it completed its
Stage 1 Expansion Study. The Stage 1 Expansion plan defines a low
capital intensity transition from current production levels (70,000
- 80,000 oz per annum) to gold production rates averaging 110,000
oz per annum from FY2022 to FY2027. The Stage 1 Expansion is an
intermediate step to extract value from the company's significant
sulphide resource and underpins a strategic pathway to +200,000 oz
per annum. During the half the company has received very strong
demand for offtake of the gold concentrate produce from the Stage 1
Expansion Plan, and the finalization of a funding package is
expected in the coming months.
Convertible Security Funding Agreement
On 25 September 2018, Blackham announced the execution of an
agreement with an entity managed by The Lind Partners, a New York
based institutional fund manager, ("Lind").
Lind's AUD7.5 million investment was provided as a Secured
Convertible Note, the proceeds of which were used, along with
Blackham's cash, to fully repay the short term secured debt owed to
Orion Fund JV Limited. The convertible note was repaid on 2
September 2019.
Controlled Placement Agreement
During July 2018, Blackham entered into a Controlled Placement
Agreement ("CPA") with Acuity Capital. The CPA provides Blackham
with up to AUD10 million of standby equity capital over the coming
29-month period. Importantly, Blackham retains full control of all
aspects of the placement process, having sole discretion as to
whether or not to utilise the CPA, the quantum of shares issued,
the minimum issue price of shares and the timing of each placement
tranche (if any). There are no requirements on Blackham to utilise
the CPA and Blackham may terminate the CPA at any time, without
cost or penalty. If Blackham does decide to utilise the CPA,
Blackham is able to set a floor price (at its sole discretion) and
the final issue price will be calculated as the greater of that
floor price set by Blackham and a 10% discount to a Volume Weighted
Average Price over a period of Blackham's choosing (again at the
sole discretion of Blackham).
Pursuant to the abovementioned Controlled Placement Agreement,
Blackham issued 25,000,000 collateral shares to Acuity Capital
Investment Management ATF Acuity Capital Holdings Trust on 26
September 2018.
Debt financing and working capital facility
During the year, the company entered into a working capital
facility with MACA that will assist Blackham to progress towards
its transition to the Stage 1 Expansion Sulphide Development,
targeting 120kozpa gold production and long mine life.
Pursuant to the working capital facility, MACA will provide
Blackham with working capital of up to AUD19 million until 29
February 2020, which will be provided to Blackham in the form of
extended payment terms for amounts payable to MACA under its mining
services contract ("Working Capital Facility"). The Working Capital
Facility has been provided within the company's existing security
arrangements, but is separate to the AUD14.3 million secured loan
previously provided by MACA, against which Blackham will continue
to make payments in accordance with the agreed schedule, with the
balance having reduced to AUD10.3 million as at 30 June 2019.
Capital Raising
On 12 September 2019, Blackham announced a capital raising of up
to AUD7 million (before costs) that will provide funding for key
mine development work programs that will underpin Blackham's FY2020
production, including pre-production activities at the Williamson
open pit, a new tailings storage facility, rod mill refurbishment,
and for general working capital. The capital raising comprises of a
AUD4 million placement to a small number of targeted international
and domestic institutional and professional investors at a price of
AUD0.01 per share and a share purchase plan to existing
shareholders for up to a further AUD3 million, at the same price as
the Placement.
Post the reporting period, on 26 February 2020, Blackham
announced a two-tranche Placement and a proposed, fully
underwritten, non-renounceable Entitlement Offer to raise a total
of AUD52 million, before costs (Capital Raising). Arlington Group
Asset Management Limited has been appointed Lead Manager, and are
being supported by Ironbridge Capital Partners LLP, and Tectonic
Advisory Partners (acting through Ecoban Securities
Corporation).The Capital Raising comprises:
-- a placement to sophisticated and professional investors using
the company's placement capacities, which does not require
shareholder approval under ASX Listing Rule 7.1 and ASX Listing
Rule 7.1A (Tranche 1);
-- a placement to sophisticated and professional investors in
excess of the company's placement capacities under ASX Listing Rule
7.1 and ASX Listing Rule 7.1A, therefore requiring shareholder
approval (Tranche 2); and, a non-renounceable pro-rata entitlement
offer to existing shareholders.
Blackham is particularly encouraged by the support of tier 1,
international institutions who are participating in the Capital
Raising, indicating their backing and endorsement of Blackham's
expansion and growth strategy, and the renewed management team.
In addition to the Capital Raising, Blackham intends to pursue
an indicative, non-binding term sheet it has executed with
Mercuria, a large, European based trading group, for a AUD40
million project loan facility. The company is seeking to agree
terms and obtain final credit approval from the potential lender in
the coming months.
On 20 March 2020, Blackham's share price closed at AUD0.008 with
a market capitalisation of USD21.6 million (AUD/USD = 0.57242).
Nimini Holdings Limited
-- Gold Project, Sierra Leone
Polo's Annual Report 2018 explained that despite the
considerable lobbying efforts by our in-country representative who
is a Director of our local subsidiary Nimini Mining Limited, the
Nimini Project's Mining Licence ("ML") was cancelled at the end of
August 2018. This came a month after a blanket move by the
Government of Sierra Leone ("GoSL") cancelling over 30 mining
licences at which time the GoSL cited it was facing serious revenue
generation challenges.
Note that Nimini had earlier taken the decision to suspend all
payments to the GoSL (including the annual ML fee). Nimini wrote to
the GoSL explaining that it was forced to take this drastic action
because the GoSL was not acting in good faith with the Mine
Development Agreement ("MDA") negotiations. The MDA is crucial to
development of Nimini's Komahun Gold Project as it defines the
fiscal terms.
Polo remains disappointed by the GoSL's action in cancelling the
Nimini Project's mining licence and wrote directly to the President
and the Minister of Mines and Mineral Resources appealing for the
decision to be reversed.
Nimini Holdings Ltd and its Sierra Leone subsidiaries have since
been dissolved during 2018-19.
In the meantime , following the termination of the Operator
Agreement with our joint venture partner Plinian and under the
terms and conditions of this agreement and other supplementary
agreements Polo is pursuing recovery of some USD4,182,717.28 (with
interest calculated to 22 July 2019)) from Plinian.
Copper
Weatherly International Plc (AIM; WTI)
-- Copper, Namibia
-- 5.2% equity interest
Weatherly International is reviewing its strategic options
following the appointment of Simon Kirkhope and Andrew Johnson of
FTI Consulting as joint administrators of the company in June 2018.
This follows the implementation of a recovery plan for its Tschudi
copper mine in Namibia, following significant water ingress in May
2018. Since the appointment of the joint administrators in June,
there have been material improvements to the dewatering
capabilities and a strategy enabling stable path to growth has been
implemented.
Weatherly has a diverse portfolio of base metal production and
development assets with multiple low capital spend growth
opportunities. These include the Tschudi Mine, the Otjihase and
Matchless mines (together, "Central Operations") which were placed
on care and maintenance in September 2015 and the Berg Aukas
project in Namibia. Key highlights of Weatherly's main assets are
provided below.
Tschudi
-- Producing copper mine located in Tsumeb, northern Namibia
-- Currently running at 17ktpa (the SX-EW plant's minimum design capacity)
-- Ore Reserves(1) of 15.6Mt at 0.89% Cu for 138.2kt and Mineral
Resources(1) of 51.0Mt at 0.76% Cu for 387.7kt
-- Materially improved dewatering capabilities and strategy enabling stable path to growth
-- Strong Resource base could support further production
enabling potential mine life extensions
-- Underexplored project area
-- Modern processing facilities and robust infrastructure base
Central Operations
-- Three underground mines and an 800ktpa copper concentrator,
currently on care and maintenance
-- The operations were in production until September 2015,
producing high quality concentrate sought after for blending
-- Mineral Resources(2) of 4.40Mt at 2.27% Cu for 99.7kt
(Otjihase) and 1.34Mt @ 2.40% for 31.8Kt (Matchless)
-- Otjihase and Matchless mines represent a significant low
capital intensity restart opportunity with substantial cash flow
enhancing opportunities including:
o Capital realisation through optimised design
o Improvement of exploration target through expansion and access
to neighbouring compartments
o Backfill optimisation to increase recovery
Berg Aukas
-- Past -producing zinc-lead-vanadium project located near Tsumeb, Namibia
-- Shafts and access development to 800m depth
-- Ore Reserves(3) of 1.69Mt at 11.16% Zn, 2.76% Pb and 0.23%
V(2) O(5) (Cut off 5% Zn) and Mineral
-- Resources(3) of 1.26Mt at 15.47% Zn, 3.84% Pb and 0.33% V(2) O(5) (Cut off 3.0% Zn)
-- Significant value enhancing opportunities including:
o Shaft stripping / decline addition options allowing for larger
equipment and mill expansion
o Unlocking value from metal recovery from stock of historical
tailings
o Favourable vanadium pricing environment
Notes
(1) Total as at 30 June 2017. 100% basis.
(2) 100% basis. Mineral Resource statement for the Otjihase Mine
is declared in terms of the JORC Code (2012
Edition) with an effective date of 31 March 2018. Matchless
estimated tonnage based on Bara polygonal calculation.
(3) As at April 2013.
Financial Position
The Group recorded an operating loss of USD6,369,000 for the six
months to 31 December 2019
(31 December 2018: USD1,555,000). The loss was largely
attributable to loss on fair value movement of financial
investments of USD5,227,000. As at 20 March 2020, the Group had a
net position of cash, receivables and short term investments of
USD10.13 million (31 December 2019: USD12.02 million). Listed and
unlisted investments at marked to market value, cost and valuation
amounted to USD22.33 million (31 December 2019: USD47.14 million).
The combined total of cash, receivables, payables, listed and
unlisted investments was USD28.61 million as of 20 March 2020 (31
December 2019: USD53.89 million) which is equivalent to a Net Asset
value of approximately 7.94 pence per Polo share (31 December 2019:
13.18 pence per share).
Outlook
Polo's investment exposure is now primarily centered around the
energy sector and we are mindful of the growing importance climate
change and the desire by all governments to reduce their CO(2)
emissions is having on investors in terms of their investment
decision focus and policy when it comes to investing in the
hydrocarbon sector. Polo has always taken the view that we have to
offer our shareholders a balanced investment portfolio. In the case
of both Hibiscus and GCM we are mindful of the environmental
footprint of both these investee companies. Whilst there is a
global desire to reduce CO(2) and greenhouse gasses and for the
world to transit much faster towards renewable energy, the
transition will naturally take some time. In the mean-time
industries still demand the supply of petroleum to support the day
to day workings of the global economy and where in the foreseeable
future Polo will remain committed to supporting Hibiscus which is a
best in class oil and gas company recognised by a number of
external verifications.
In the case of GCM we are confident that the development of
Phulbari will see the latest highly energy efficient coal fired
power generation plants being designed and built and that these
will operate to the highest possible environmental standards. In
particular these power plants will use leading-edge flue gas
cleaning systems to protect air quality and cooling systems that
minimise water consumption. We also envisage applicable CO(2)
recovery systems will be incorporated as soon as the technology is
available.
Polo remains focussed on supporting our current investee
companies as our key priority heading in 2020 . I would like to
thank all our shareholders, partners and advisers for their
continuous and unwavering support.
Datuk Michael Tang, PJN
Executive Chairman
30 March 2020
CONSOLIDATED INCOME STATEMENT
FOR THE 6 MONTHSED 31 DECEMBER 2019
6 months ended 6 months ended Year ended
31 December 31 December
2019 2018
(unaudited) (unaudited) 30 June
2019
Note (audited)
$ 000's $ 000's $ 000's
Gain/(Loss) on sale of financial
investments - (458) (895)
Gain/(Loss) on fair value
movement of financial investments (5,227) - 4,828
Investment income - 72 134
Impairment of financial investments - - (2,450)
Administrative & exploration
expenses (1,036) (1,068) (2,263)
Share options expensed (104) (107) (213)
Currency exchange gain/(loss) (2) 6 -
Group operating (loss) (6,369) (1,555) (859)
------------------- ------------------- -----------
Share of associates results (252) (527) (1,572)
Reversal of /(Impairment)
of associate - - 2,400
Other loan provision - - (4,180)
Finance revenue 161 198 457
Loss on disposal of subsidiary (436)
(Loss) before taxation (6,460) (1,884) (4,190)
Income tax expense - - -
Retained (loss) for the financial
period (6,460) (1,884) (4,190)
------------------- ------------------- -----------
Attributable to:
Equity holders of the parent (6,461) (1,884) (4,186)
Non-controlling interests 1 - (4)
------------------- ------------------- -----------
(6,460) (1,884) (4,190)
------------------- ------------------- -----------
Earnings per share: 2
Basic earnings per share
(US cents) (2.07) (0.60) (1.34)
Diluted earnings per share
(US cents) (2.07) (0.56) (1.34)
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE 6 MONTHSED 31 DECEMBER 2019
6 months ended 6 months ended Year ended
31 December 31 December
2019 2018
(unaudited) (unaudited) 30 June
2019
(audited)
$ 000's $ 000's $ 000's
Retained (loss) for the
period (6,460) (1,884) (4,190)
Gain on market value revaluation - (3,507) -
of available for sale investments
Currency translation differences 82 (83) 423
Other comprehensive income
for the period net of taxation 82 (3,590) 423
--------------- --------------- -----------
Total comprehensive income (6,378) (5,474) (3,767)
--------------- --------------- -----------
CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2019
31 December 31 December 30 June
2019 2018 2019
Note (unaudited) (unaudited) (audited)
$ 000's $ 000's $ 000's
Non-current assets
Tangible assets - 2,475 -
Interest in associates 3 2,831 1,675 3,083
Financial investments 4 40,319 41,041 45,672
Trade and other receivables - 4,050 -
Total non-current assets 43,150 49,241 48,755
-------------- ------------- -----------
Current assets
Trade and other receivables 7,749 3,412 7,289
Financial investments 4 3,994 4,762 3,868
Cash and cash equivalents 281 801 550
-------------- ------------- -----------
Total current assets 12,024 8,975 11,707
-------------- ------------- -----------
Total Assets 55,174 58,216 60,462
-------------- ------------- -----------
Current Liabilities
Trade and other payables (1,286) (3,302) (300)
-------------- ------------- -----------
Total Liabilities (1,286) (3,302) (300)
-------------- ------------- -----------
Net Assets 53,888 54,914 60,162
============== ============= ===========
Shareholders' equity
Equity contribution 306,714 306,714 306,714
Share based payment reserve 533 323 429
Foreign exchange reserve 17,739 17,151 17,657
Available for sale investments - 16,171 -
reserve
Retained earnings (271,188) (282,099) (264,727)
Non-controlling interest 90 (3,346) 89
-------------- ------------- -----------
Total Equity 53,888 54,914 60,162
============== ============= ===========
CONSOLIDATED CASH FLOW STATEMENT
FOR THE 6 MONTHSED 31 DECEMBER 2019
6 months ended 6 months ended Year ended
31 December 31 December
2019 2018
(unaudited) (unaudited) 30 June
2019
(audited)
Cash flows from operating activities $ 000's $ 000's $ 000's
Operating (loss) (6,369) (1,555) (859)
Decrease/(Increase) in trade
and other receivables (460) (408) 24
(Decrease)/Increase in trade
and other payables 986 (18) (80)
Decrease/(Increase) in available
for sale investments 5,227 1,477 (1,203)
Foreign exchange (gain)/ loss 2 (6) (5)
Share options expensed 104 107 213
Impairment of AFS investments - - 2,450
--------------- --------------- -----------
Net cash (outflow) from operating
activities (510) (403) 540
--------------- --------------- -----------
Cash flows from investing activities
Finance revenue 161 198 6
Equity purchases in associates - (68) (121)
Loan (advanced) to third party - (109) (1,156)
Net cash (outflow) from investing
activities 161 21 (1,271)
--------------- --------------- -----------
Cash flows from financing activities
Issue of ordinary share capital - - -
Net cash (outflow) from financing - - -
activities
--------------- --------------- -----------
Net (decrease) in cash and cash
equivalents (349) (382) (731)
Cash and cash equivalents at
beginning of period 550 1,260 1,260
Exchange gain/(loss) on cash
and cash equivalents 80 (77) 21
--------------- --------------- -----------
Cash and cash equivalents at
end of period 281 801 550
--------------- --------------- -----------
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (Unaudited)
FOR THE 6 MONTHSED 31 DECEMBER 2019
Available Foreign Share
for sale currency based Non-
Equity investment translation payment Retained Controlling Total
Contribution reserve reserve reserve earnings Total Interest Equity
Group $ 000's $ 000's $ 000's $ 000's $ 000's $ 000's $000's $ 000's
(unaudited)
As at 1 July
2019 306,714 - 17,657 429 (264,727) 60,073 89 60,162
(Loss) for
the period - - - - (6,461) (6,461) 1 (6,460)
Transfer to - - - - - - - -
income
statement
Currency
translation
differences - - 82 - - 82 - 82
------------- ------------- ------------- --------- ---------- -------- ------------- --------
Total
Comprehensive
income - - 82 - (6,461) (6,379) 1 (6,378)
Share capital - - - - - - - -
issued
Share options - - - - - - - -
expired
Share options
charge - - - 104 - 104 - 104
Total
contributions
by and
distributions
to owners
of the
Company - - - 104 - 104 - 104
As at 31
December
2019 306,714 - 17,739 533 (271,188) 53,798 90 53,888
------------- ------------- ------------- --------- ---------- -------- ------------- --------
Available Foreign Share
for sale currency based Non-
Equity investment translation payment Retained Controlling Total
Contribution reserve reserve reserve earnings Total Interest equity
Group $ 000's $ 000's $ 000's $ 000's $ 000's $ 000's $000's $ 000's
(unaudited)
As at 1 July
2018 306,714 19,674 17,234 216 (280,215) 63,623 (3,342) 60,281
(Loss) for
the period - - - - (1,884) (1,884) - (1,884)
Gain/(Loss)
on market
value
revaluation
of available
for sale
investments - (3,503) - - - (3,503) (4) (3,507)
Transfer - - - - - - - -
to income
statement
Currency
translation
differences - - (83) - - (83) - (83)
-------------- ------------ ------------- --------- ---------- -------- ------------- --------
Total
Comprehensive
income - (3,503) (83) - (1,884) (5,470) (4) (5,474)
Share capital - - - - - - - -
issued
Share options - - - - - - - -
expired
Share options
charged - - - 107 - 107 - 107
Total
contributions
by and
distributions
to owners
of the
Company - - - 107 - 107 - 107
As at 31
December
2018 306,714 16,171 17,151 323 (282,099) 58,260 (3,346) 54,914
-------------- ------------ ------------- --------- ---------- -------- ------------- --------
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (Unaudited)
(continued)
FOR THE 6 MONTHSED 31 DECEMBER 2019
Equity Available Foreign Share Retained Total Non- Total
Contribution for sale currency based earnings Controlling equity
investment translation payment Interest
reserve reserve reserve
Group $ 000's $ 000's $ 000's $ 000's $ 000's $ 000's $000's $ 000's
(audited)
As at 1 July
2018 306,714 19,674 17,234 216 (280,215) 63,623 (3,342) 60,281
(Loss) for
the period - - - - (4,186) (4,186) (4) (4,190)
Currency
translation
differences - - 423 - - 423 - 423
-------------- ------------ ------------- --------- ---------- -------- ------------- --------
Total
Comprehensive
income - - 423 - (4,186) (3,763) (4) (3,767)
Share options - - - - - - - -
expired
Share options
charge - - - 213 - 213 - 213
-------------- ------------ ------------- --------- ---------- -------- ------------- --------
Total
contributions
by and
distributions
to owners of
the Company - - - 213 - 213 - 213
-------------- ------------ ------------- --------- ---------- -------- ------------- --------
Transfer to
retained
earnings - (19,674) - - 19,674 - - -
Eliminated
on disposal
of subsidiary - - - - - - 3,435 3,435
-------------- ------------ ------------- --------- ---------- -------- ------------- --------
As at 30 June
2019 306,714 - 17,657 429 (264,727) 60,073 89 60,162
-------------- ------------ ------------- --------- ---------- -------- ------------- --------
NOTES TO THE INTERIM FINANCIAL STATEMENTS
FOR THE 6 MONTHSED 31 DECEMBER 2019
1. Basis of preparation
The consolidated financial statements have been prepared under
the historical cost convention and on a going concern basis and in
accordance with International Financial Reporting Standards and
IFRIC interpretations adopted for use in the European Union
("IFRS") and those parts of the BVI Business Companies Act
applicable to companies reporting under IFRS.
The financial information for the period ended 31 December 2019
has not been audited or reviewed in accordance with the
International Standard on Review Engagements 2410 issued by the
Auditing Practices Board. The figures were prepared using
applicable accounting policies and practices consistent with those
adopted in the statutory accounts for the period ended 30 June 2019
and as expected to be adopted in the statutory accounts for the
year ending 30 June 2020. The figures for the period ended 30 June
2019 have been extracted from the accounts for the period ended 30
June 2019, which are available on the Company's website at
www.poloresources.com, and contain an unqualified audit report.
The financial information contained in this document does not
constitute statutory financial statements. In the opinion of the
directors the financial information for this period fairly presents
the financial position, results of operations and cash flows for
this period.
Statement of compliance
These condensed consolidated interim financial statements have
been prepared in accordance with International Financial Reporting
Standards (IFRS) as adopted by the European Union with the
exception of International Accounting Standard ('IAS') 34 - Interim
Financial Reporting. Accordingly the interim financial statements
do not include all of the information or disclosures required in
the annual financial statements and should be read in conjunction
with the Group's 2019 annual financial statements.
Basis of consolidation
The consolidated financial statements comprise the financial
statements of Polo Resources Limited and its controlled entities.
The financial statements of controlled entities are included in the
consolidated financial statements from the date control commences
until the date control ceases.
The financial statements of subsidiaries are prepared for the
same reporting period as the parent company, using consistent
accounting policies. All inter-company balances and transactions
have been eliminated in full.
Foreign currencies
(a) Functional and presentation currency
The functional currency of each entity is determined after
consideration of the primary economic environment of the entity.
The group's presentational currency is US Dollar ($).
(b) Group companies
The results and financial position of all the group entities are
translated into the presentation currency as follows:
-- Assets, liabilities and equity for each balance sheet
presented are translated at the closing rate at the date of that
balance sheet;
-- Income and expenses for each income statement are translated at average exchange rates; and
-- All resulting exchange differences are recognized as a separate component of equity.
(c) Rates of exchange
US$ to one unit of foreign currency were as follows:
Average for Average for
As at 31 the As at 30 the period
December 6 months to June 2019 to 30 June
2019 31 December 2019
2019
Pound Sterling 1.31160 N/A 1.26898 N/A
Australian
Dollar 0.69939 N/A 0.70136 N/A
Canadian Dollar 0.76524 N/A 0.76356 N/A
Singapore Dollar 0.74114 N/A 0.73851 N/A
----------- ------------- ------------ ------------
2. Earnings per share
The calculation of earnings per share is based on the (loss)
after taxation divided by the weighted average number of shares in
issue during the period:
6 Months ended 6 Months ended
31 December 31 December
2019 2018
(unaudited) (unaudited) Year 30 June
2019
(audited)
Net (loss) after taxation
($000's) (6,460) (1,884) (4,190)
Weighted average number
of ordinary shares used
in calculating basic earnings
per share (millions) 311.79 311.79 311.79
--------------- --------------- --------------
Basic (loss) per share
(expressed in US cents) (2.07) (0.60) (1.34)
--------------- --------------- --------------
Weighted average number
of ordinary shares used
in calculating fully diluted
earnings per share (millions) 311.79 339.29 311.79
--------------- --------------- --------------
Diluted (loss) per share
(expressed in US cents) (2.07) (0.56) (1.34)
--------------- --------------- --------------
As the inclusions of the potential Ordinary Shares would result
in a decrease in the loss per share they are considered to be
anti-dilutive and as such not included.
3. Interest in associates
2019
$ 000's
Group
At beginning of the period 3,083
Investments in associates - equity -
purchases
Share of associates' loss for the period (252)
As at 31 December 2019 2,831
-----------
The breakdown of the carrying values and fair values at
the balance sheet date of the Group's interest in listed
and unlisted associates is as follows:
Non-current assets Carrying Fair Value
Value
$ 000's $ 000's
GCM Resources Plc (listed) 2,465 2,753
Celamin Holdings Ltd (listed) 366 2,617
2,831 5,370
--------- -----------
The breakdown of the fair values as at 20 March 2020 of
the Group's interest in listed and unlisted associates is
as follows:
Non-current assets Fair Value
$ 000's
GCM Resources Plc (listed) 1,919
Celamin Holdings Ltd (listed) 1,904
3,823
-----------
4. Available for sale investments
Group - Listed & Unlisted Investments $ 000's
At 1 July 2019 49,540
Acquired during the period -
Disposal during the period -
Realised (loss)/gains on disposals -
Movement in market value (5,227)
--------
At 31 December 2019 44,313
--------
The available for sale investments splits
are as below:
Non-current assets - listed 33,242
Non-current assets - unlisted 7,077
Current assets - listed 3,197
Current assets - unlisted 797
--------
44,313
--------
Available-for-sale investments comprise investments in unlisted
and listed securities (which are traded on regulated stock markets)
and which are held by the Group as a mix of strategic and short
term investments.
5. Events after the end of the reporting period
There are no events after the end of the reporting period to
disclose.
6. Financial information
The financial information set out above does not constitute the
Group's statutory accounts for the period ended 30 June 2019, but
is derived from those accounts. Statutory accounts for the period
have been delivered to the shareholders, and the auditors made an
unqualified report thereon.
A copy of this interim financial report will be available on the
Company's website (www.poloresources.com) later today.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
IR WPUPGWUPUUBU
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March 30, 2020 05:30 ET (09:30 GMT)
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