TIDMAFD
RNS Number : 7558I
African Diamonds PLC
18 March 2010
African Diamonds PLC
Interim Results for six months ended 31 December 2009
Highlights:
· AK6 diamond mine expected to come on stream in Q4 2011
· Feasibility study will be completed in late May 2010
· Mine development operations will start in September 2010
· OPEX, CAPEX and revenue are in line previous guidance
· Value of AK6 diamonds expected to be in the region of $200 a carat
· At an advanced stage in completing financing to cover expenditures in
2010 and 2011
· Proportion of Type II stones in AK6 could be larger than previously
estimated
John Teeling, Chairman of African Diamonds, commented:
"The pace of development at AK6 is accelerating. The mine will come on stream
in 2011, within the cost parameters that we have previously set.
Our new Partner, Lucara, has the same objectives as us to bring the mine on
stream as quickly and efficiently as possible. The mine will come on stream at
the perfect time; prices and demand are high. The recent valuation report has
also vindicated our view that AK6 will produce high quality beautiful stones.
This is an exciting time for African Diamonds and its shareholders as we move
forward and develop AK6."
18 March 2010
Enquiries:
+---------------------------------+--------------------------------+
| African Diamonds | |
+---------------------------------+--------------------------------+
| John Teeling, Executive | +353 1 833 2833 |
| Chairman | |
+---------------------------------+--------------------------------+
| James Campbell, Managing | +27 83 457 3724 |
| Director | |
+---------------------------------+--------------------------------+
| Finncap | |
+---------------------------------+--------------------------------+
| Matthew Robinson | +44 207 600 1658 |
+---------------------------------+--------------------------------+
| College Hill | |
+---------------------------------+--------------------------------+
| Nick Elwes | +44 207 457 2020 |
+---------------------------------+--------------------------------+
www.afdiamonds.com
Interim Results for the Six Months Ended 31st December 2009
This is a very interesting and positive time for the shareholders of African
Diamonds. The pace of the AK6 development is accelerating. We expect the mine
to come on stream in the last quarter of 2011. The final feasibility study will
be completed in late May, and site development will start by September 2010.
The indications on OPEX, CAPEX and revenue are in line with what has previously
been reported.
Among the positive indications are:
· the per carat value of AK6 diamonds is expected to be in the region of
$200 a carat compared to the $138 used in existing studies;
· throughput in Phase 1 of up to 3 million tonnes instead of 2 million
tonnes;
· a change in the sieve size from 1 mm to 1.5 mm, thereby decreasing the
flow to the final diamonds recovery, but increasing the average size of diamonds
recovered;
· increasing the size of material which escapes crushing. This enables
diamonds up to 350 carats be recovered. This is critical to recover large Type
II diamonds.
Add to this a rapid improvement in world diamond demand and prices, and the
future looks bright.
Your directors are at an advanced stage in completing financing to cover
expenditure in 2010 and 2011. We are particularly mindful of equity dilution
given our low share price. African Diamonds has the right to market their
percentage of AK6 output; up to 400,000 carats of good quality diamonds at full
production. In a market of growing scarcity, this is a valuable asset and is
helping in our funding.
The feasibility study is progressing as planned. Following a detailed
assessment of the ore types and equipment, the plant flowsheet has been
restructured. Three significant changes were proposed and accepted by the board
of Boteti. The first is that the Autogenous Mill will treat between 2.5-3.0
million tonnes of ore per annum as opposed to the originally specified 2 million
tonnes per annum and this at no additional cost. Second, the bottom cut-off
size for the plant has been elevated from 1.0 mm to 1.5 mm. Not only will this
increase the dollars/hour revenue generated through the plant, but it will also
lead to a lower per tonne plant operating cost. Finally, the top cut off size
has been increased from 24mm to 32mm so as to capture the large, high quality
diamonds which are known to be prevalent in the AK6 kimberlite.
The average diamond value (+1mm) has improved to a modelled $162/carat, but when
in production this is expected to be in the range of $200/carat. More recent
studies have looked at detailed modelling of the diamond size frequency
distribution. This suggests values in excess of $200/carat once the diamond
breakage which was so prevalent in the drill sampling has been modelled out.
There is also an emerging view that the grade of the southern lobe could be as
much as 40% under-estimated again due to the high-level of diamond breakage in
the drill samples taken from the southern lobe.
There is a high ratio of Type II diamonds in AK6. These are very rare, maybe 2%
of all diamonds. They contain no nitrogen and tend to be large. They command
very high prices. Some experts believe that the proportion of Type II stones in
AK6 may be larger than previously estimated. We have reconfigured the treatment
plant to allow for the recovery of these stones. Their presence could have a
very favourable impact on revenue.
Aside from technical and economic activity, the project team has been working on
stakeholder engagement in the vicinity of the AK6 site. All the assets
belonging to the previous operator have also now been transferred to the new
joint venture. Office space has been taken at Gaborone's Diamond Technology
Park, which will also be used as a venue to sort the AK6 diamonds. We are
currently in discussion with a number of diamantaires on the best diamond
marketing regime.
The world recession, while hurting many, is a boon to the AK6 development.
Equipment prices have stabilised or fallen, delivery times shortened and skills
are available. These facts help CAPEX and OPEX, both of which are expected to
be within the parameters of our earlier studies.
While the focus is clearly on AK6, other opportunities are not being neglected.
We are considering joint venture proposals on two other Botswana kimberlites in
our portfolio. We hope to begin detailed exploration of a third kimberlite and
we are developing ideas on how to expand our Botswana presence.
John Teeling
Chairman
18th March 2010
+----------------------+-----+----------+------+----------+--------+----------+-----------+----------+-----------+----------+---------+
| African Diamonds plc |
+-------------------------------------------------------------------------------------------------------------------------------------+
| Financial Information (Unaudited) |
| |
| |
| |
+-------------------------------------------------------------------------------------------------------------------------------------+
| | | | | | | | | | | | |
+----------------------+-----+----------+------+----------+--------+----------+-----------+----------+-----------+----------+---------+
| Condensed Consolidated | | | | | | Six Months Ended | | Year |
| Income Statement | | | | | | | | Ended |
+----------------------------+----------+------+----------+--------+----------+----------------------------------+----------+---------+
| | | | | | | | 31 Dec | | 31 | | 30 |
| | | | | | | | 09 | | Dec08 | | Jun |
| | | | | | | | | | | | 09 |
+----------------------+-----+----------+------+----------+--------+----------+-----------+----------+-----------+----------+---------+
| | | | | | | |unaudited | |unaudited | |audited |
+----------------------+-----+----------+------+----------+--------+----------+-----------+----------+-----------+----------+---------+
| | | | | | | | GBP'000 | | GBP'000 | |GBP'000 |
+----------------------+-----+----------+------+----------+--------+----------+-----------+----------+-----------+----------+---------+
| Revenue | | | | | | | - | | - | | - |
+----------------------+-----+----------+------+----------+--------+----------+-----------+----------+-----------+----------+---------+
| Cost of sales | | | | | | | - | | - | | - |
+----------------------+-----+----------+------+----------+--------+----------+-----------+----------+-----------+----------+---------+
| Gross Profit | | | | | | | - | | - | | - |
+----------------------+-----+----------+------+----------+--------+----------+-----------+----------+-----------+----------+---------+
| | | | | | | | | | | | |
+----------------------+-----+----------+------+----------+--------+----------+-----------+----------+-----------+----------+---------+
| Administrative costs | | | | | | | (223) | | (335) | | (601) |
+----------------------+-----+----------+------+----------+--------+----------+-----------+----------+-----------+----------+---------+
| Operating Loss | | | | | | | (223) | | (335) | | (601) |
+----------------------+-----+----------+------+----------+--------+----------+-----------+----------+-----------+----------+---------+
| | | | | | | | | | | | |
+----------------------+-----+----------+------+----------+--------+----------+-----------+----------+-----------+----------+---------+
| Finance revenue | | | | | | | 1 | | 37 | | 93 |
+----------------------+-----+----------+------+----------+--------+----------+-----------+----------+-----------+----------+---------+
| Finance costs | | | | | | | (2) | | (2) | | (2) |
+----------------------+-----+----------+------+----------+--------+----------+-----------+----------+-----------+----------+---------+
| Profit/(Loss) on | | | | | | 19 | | (475) | | (550) |
| investment held at fair | | | | | | | | | | |
| value | | | | | | | | | | |
+----------------------------+----------+------+----------+--------+----------+-----------+----------+-----------+----------+---------+
| | | | | | | | | | | | |
+----------------------+-----+----------+------+----------+--------+----------+-----------+----------+-----------+----------+---------+
| Loss before taxation | | | | | | | (205) | | (775) | | (1,060) |
+----------------------+-----+----------+------+----------+--------+----------+-----------+----------+-----------+----------+---------+
| Income tax expense | | | | | | | - | | - | | - |
+----------------------+-----+----------+------+----------+--------+----------+-----------+----------+-----------+----------+---------+
| Loss for the period | | | | | | | (205) | | (775) | | (1,060) |
+----------------------+-----+----------+------+----------+--------+----------+-----------+----------+-----------+----------+---------+
| | | | | | | | | | | | |
+----------------------+-----+----------+------+----------+--------+----------+-----------+----------+-----------+----------+---------+
| Loss per share | | | | | | | (0.27p) | | (1.02p) | | (1.39p) |
+----------------------+-----+----------+------+----------+--------+----------+-----------+----------+-----------+----------+---------+
| | | | | | | | | | | | |
+----------------------+-----+----------+------+----------+--------+----------+-----------+----------+-----------+----------+---------+
+----------------------+-----+----------+------+----------+--------+----------+-----------+----------+-----------+----------+---------+
| | | | | | | | | | | | |
+----------------------+-----+----------+------+----------+--------+----------+-----------+----------+-----------+----------+---------+
| | | | | | | | | | | | |
+----------------------+-----+----------+------+----------+--------+----------+-----------+----------+-----------+----------+---------+
| Condensed Consolidated | | | | | | 31 Dec | | 31 | | 30 |
| Balance Sheet | | | | | | 09 | | Dec08 | | Jun |
| | | | | | | | | | | 09 |
+----------------------------+----------+------+----------+--------+----------+-----------+----------+-----------+----------+---------+
| | | | | | | | unaudited | |unaudited | |audited |
+----------------------+-----+----------+------+----------+--------+----------+-----------+----------+-----------+----------+---------+
| | | | | | | | GBP'000 | | GBP'000 | |GBP'000 |
+----------------------+-----+----------+------+----------+--------+----------+-----------+----------+-----------+----------+---------+
| Non Current Assets | | | | | | | | | | | |
+----------------------+-----+----------+------+----------+--------+----------+-----------+----------+-----------+----------+---------+
| Intangible assets | | | | | | | 3,866 | | 3,137 | | 3,511 |
+----------------------+-----+----------+------+----------+--------+----------+-----------+----------+-----------+----------+---------+
| Financial assets | | | | | | | 227 | | 282 | | 208 |
+----------------------+-----+----------+------+----------+--------+----------+-----------+----------+-----------+----------+---------+
| Investments | | | | | | | 838 | | 838 | | 838 |
+----------------------+-----+----------+------+----------+--------+----------+-----------+----------+-----------+----------+---------+
| Receivables (due | | | | | | | 1,802 | | 1,342 | | 1,802 |
| after one year) | | | | | | | | | | | |
+----------------------+-----+----------+------+----------+--------+----------+-----------+----------+-----------+----------+---------+
| | | | | | | | 6,733 | | 5,599 | | 6,359 |
+----------------------+-----+----------+------+----------+--------+----------+-----------+----------+-----------+----------+---------+
| Current Assets | | | | | | | | | | | |
+----------------------+-----+----------+------+----------+--------+----------+-----------+----------+-----------+----------+---------+
| Receivables and | | | | | | | 46 | | 34 | | 24 |
| prepayments | | | | | | | | | | | |
+----------------------+-----+----------+------+----------+--------+----------+-----------+----------+-----------+----------+---------+
| Cash and cash | | | | | | | 695 | | 991 | | 53 |
| equivalents | | | | | | | | | | | |
+----------------------+-----+----------+------+----------+--------+----------+-----------+----------+-----------+----------+---------+
| | | | | | | | 741 | | 1,025 | | 77 |
+----------------------+-----+----------+------+----------+--------+----------+-----------+----------+-----------+----------+---------+
| Total Assets | | | | | | | 7,474 | | 6,624 | | 6,436 |
+----------------------+-----+----------+------+----------+--------+----------+-----------+----------+-----------+----------+---------+
| | | | | | | | | | | | |
+----------------------+-----+----------+------+----------+--------+----------+-----------+----------+-----------+----------+---------+
| Liabilities | | | | | | | | | | | |
+----------------------+-----+----------+------+----------+--------+----------+-----------+----------+-----------+----------+---------+
| Current Liabilities | | | | | | | | | | | |
+----------------------+-----+----------+------+----------+--------+----------+-----------+----------+-----------+----------+---------+
| Trade and other | | | | | | | (235) | | (181) | | (245) |
| payables | | | | | | | | | | | |
+----------------------+-----+----------+------+----------+--------+----------+-----------+----------+-----------+----------+---------+
| Net Current | | | | | | | 506 | | 844 | | (168) |
| Liabilities | | | | | | | | | | | |
+----------------------+-----+----------+------+----------+--------+----------+-----------+----------+-----------+----------+---------+
| | | | | | | | | | | | |
+----------------------+-----+----------+------+----------+--------+----------+-----------+----------+-----------+----------+---------+
| Non Current | | | | | | | | | | | |
| Liabilities | | | | | | | | | | | |
+----------------------+-----+----------+------+----------+--------+----------+-----------+----------+-----------+----------+---------+
| Loan Lucara Diamonds | | | | | | | (1,233) | | 0 | | 0 |
+----------------------+-----+----------+------+----------+--------+----------+-----------+----------+-----------+----------+---------+
| Net Assets | | | | | | | 6,006 | | 6,443 | | 6,191 |
+----------------------+-----+----------+------+----------+--------+----------+-----------+----------+-----------+----------+---------+
| | | | | | | | | | | | |
+----------------------+-----+----------+------+----------+--------+----------+-----------+----------+-----------+----------+---------+
| Equity | | | | | | | | | | | |
+----------------------+-----+----------+------+----------+--------+----------+-----------+----------+-----------+----------+---------+
| Share capital | | | | | | | 2,927 | | 2,927 | | 2,927 |
+----------------------+-----+----------+------+----------+--------+----------+-----------+----------+-----------+----------+---------+
| Reserves | | | | | | | 3,079 | | 3,516 | | 3,264 |
+----------------------+-----+----------+------+----------+--------+----------+-----------+----------+-----------+----------+---------+
| Total Equity | | | | | | | 6,006 | | 6,443 | | 6,191 |
+----------------------+-----+----------+------+----------+--------+----------+-----------+----------+-----------+----------+---------+
+----------------------+---------+----------+---------+----------+----------+----------+-------------+----------+----------+----------+---------+
| | | | | | | |
| Condensed Consolidated Statement of Changes in Shareholders | | | | | | |
| Equity | | | | | | |
+---------------------------------------------------------------------------+----------+-------------+----------+----------+----------+---------+
| | | | | | | | | | | | |
+----------------------+---------+----------+---------+----------+----------+----------+-------------+----------+----------+----------+---------+
| | | | | | Share | | | | | | |
| | | | | | based | | | | | | |
+----------------------+---------+----------+---------+----------+----------+----------+-------------+----------+----------+----------+---------+
| | Share | | Share | | Payment | |Translation | |Retained | | Total |
+----------------------+---------+----------+---------+----------+----------+----------+-------------+----------+----------+----------+---------+
| |Capital | |Premium | |Reserves | | Reserves | | Losses | | Equity |
+----------------------+---------+----------+---------+----------+----------+----------+-------------+----------+----------+----------+---------+
| |GBP'000 | |GBP'000 | | GBP'000 | | GBP'000 | | GBP'000 | |GBP'000 |
+----------------------+---------+----------+---------+----------+----------+----------+-------------+----------+----------+----------+---------+
| | | | | | | | | | | | |
+----------------------+---------+----------+---------+----------+----------+----------+-------------+----------+----------+----------+---------+
| As at 1 July 2008 | 762 | | 2,165 | | 663 | | - | | 3,628 | | 7,218 |
+----------------------+---------+----------+---------+----------+----------+----------+-------------+----------+----------+----------+---------+
| Share based payments | | | | | | | | | | | - |
+----------------------+---------+----------+---------+----------+----------+----------+-------------+----------+----------+----------+---------+
| Loss for the period | | | | | | | | | (775) | | (775) |
+----------------------+---------+----------+---------+----------+----------+----------+-------------+----------+----------+----------+---------+
| As at 31 December | 762 | | 2,165 | | 663 | | - | | 2,853 | | 6,443 |
| 2008 | | | | | | | | | | | |
+----------------------+---------+----------+---------+----------+----------+----------+-------------+----------+----------+----------+---------+
| | | | | | | | | | | | |
+----------------------+---------+----------+---------+----------+----------+----------+-------------+----------+----------+----------+---------+
| Share based payments | | | | | 13 | | | | | | 13 |
+----------------------+---------+----------+---------+----------+----------+----------+-------------+----------+----------+----------+---------+
| Loss for the period | | | | | | | 20 | | (285) | | (265) |
+----------------------+---------+----------+---------+----------+----------+----------+-------------+----------+----------+----------+---------+
| As at 30 June 2009 | 762 | | 2,165 | | 676 | | 20 | | 2,568 | | 6,191 |
+----------------------+---------+----------+---------+----------+----------+----------+-------------+----------+----------+----------+---------+
| | | | | | | | | | | | |
+----------------------+---------+----------+---------+----------+----------+----------+-------------+----------+----------+----------+---------+
| Share based payments | | | | | | | | | | | - |
+----------------------+---------+----------+---------+----------+----------+----------+-------------+----------+----------+----------+---------+
| Loss for the period | | | | | | | 20 | | (205) | | (185) |
+----------------------+---------+----------+---------+----------+----------+----------+-------------+----------+----------+----------+---------+
| As at 31 December | 762 | | 2,165 | | 676 | | 40 | | 2,363 | | 6,006 |
| 2009 | | | | | | | | | | | |
+----------------------+---------+----------+---------+----------+----------+----------+-------------+----------+----------+----------+---------+
| | | | | | | | | | | | |
+----------------------+---------+----------+---------+----------+----------+----------+-------------+----------+----------+----------+---------+
+----------------------+-----+----------+------+----------+--------+----------+-----------+----------+-----------+----------+----------+
| | | | | | | | | | | | |
+----------------------+-----+----------+------+----------+--------+----------+-----------+----------+-----------+----------+----------+
| Condensed Consolidated | | | | | | Six Months Ended | | Year |
| Cash Flow | | | | | | | | Ended |
+----------------------------+----------+------+----------+--------+----------+----------------------------------+----------+----------+
| | | | | | | | 31 Dec | | 31 | | 30 |
| | | | | | | | 09 | | Dec08 | | Jun |
| | | | | | | | | | | | 09 |
+----------------------+-----+----------+------+----------+--------+----------+-----------+----------+-----------+----------+----------+
| | | | | | | |unaudited | |unaudited | | audited |
+----------------------+-----+----------+------+----------+--------+----------+-----------+----------+-----------+----------+----------+
| | | | | | | | GBP'000 | | GBP'000 | | GBP'000 |
+----------------------+-----+----------+------+----------+--------+----------+-----------+----------+-----------+----------+----------+
| Cash Flows from Operating | | | | | | | | | | |
| Activities | | | | | | | | | | |
+----------------------------+----------+------+----------+--------+----------+-----------+----------+-----------+----------+----------+
| Loss before tax | | | | | | | (205) | | (775) | | (1,060) |
+----------------------+-----+----------+------+----------+--------+----------+-----------+----------+-----------+----------+----------+
| Finance cost | | | | | | | 2 | | 2 | | 2 |
+----------------------+-----+----------+------+----------+--------+----------+-----------+----------+-----------+----------+----------+
| Finance revenue | | | | | | | (1) | | (37) | | (93) |
+----------------------+-----+----------+------+----------+--------+----------+-----------+----------+-----------+----------+----------+
| Exchange movement | | | | | | | 21 | | (27) | | (4) |
+----------------------+-----+----------+------+----------+--------+----------+-----------+----------+-----------+----------+----------+
| Fair value on | | | | | | | (19) | | 475 | | 550 |
| investments | | | | | | | | | | | |
+----------------------+-----+----------+------+----------+--------+----------+-----------+----------+-----------+----------+----------+
| Cash used by | | | | | | | (202) | | (362) | | (605) |
| Operations | | | | | | | | | | | |
+----------------------+-----+----------+------+----------+--------+----------+-----------+----------+-----------+----------+----------+
| | | | | | | | | | | | |
+----------------------+-----+----------+------+----------+--------+----------+-----------+----------+-----------+----------+----------+
| Increase in trade and | | | | | | 1,223 | | 101 | | 174 |
| other payables | | | | | | | | | | |
+----------------------------+----------+------+----------+--------+----------+-----------+----------+-----------+----------+----------+
| (Increase)/Decrease in | | | | | | (22) | | 40 | | 49 |
| receivables | | | | | | | | | | |
+----------------------------+----------+------+----------+--------+----------+-----------+----------+-----------+----------+----------+
| Net cash used in operating | | | | | | 999 | | (221) | | (382) |
| activities | | | | | | | | | | |
+----------------------------+----------+------+----------+--------+----------+-----------+----------+-----------+----------+----------+
| | | | | | | | | | | | |
+----------------------+-----+----------+------+----------+--------+----------+-----------+----------+-----------+----------+----------+
| Finance revenue | | | | | | | 1 | | 37 | | 93 |
+----------------------+-----+----------+------+----------+--------+----------+-----------+----------+-----------+----------+----------+
| Finance costs | | | | | | | (2) | | (2) | | (2) |
+----------------------+-----+----------+------+----------+--------+----------+-----------+----------+-----------+----------+----------+
| | | | | | | | | | | | |
+----------------------+-----+----------+------+----------+--------+----------+-----------+----------+-----------+----------+----------+
| Net Cash used in Operating | | | | | | 998 | | (186) | | (291) |
| Activities | | | | | | | | | | |
+----------------------------+----------+------+----------+--------+----------+-----------+----------+-----------+----------+----------+
| | | | | | | | | | | | |
+----------------------+-----+----------+------+----------+--------+----------+-----------+----------+-----------+----------+----------+
| Cash Flow from Investing | | | | | | | | | | |
| Activities | | | | | | | | | | |
+----------------------------+----------+------+----------+--------+----------+-----------+----------+-----------+----------+----------+
| Payment for | | | | | | | (355) | | (434) | | (796) |
| intangible assets | | | | | | | | | | | |
+----------------------+-----+----------+------+----------+--------+----------+-----------+----------+-----------+----------+----------+
| Movement in long term | | | | | | - | | (1,342) | | (1,802) |
| receivables | | | | | | | | | | |
+----------------------------+----------+------+----------+--------+----------+-----------+----------+-----------+----------+----------+
| Net Cash used in Investing | | | | | | (355) | | (1,776) | | (2,598) |
| Activities | | | | | | | | | | |
+----------------------------+----------+------+----------+--------+----------+-----------+----------+-----------+----------+----------+
| | | | | | | | | | | | |
+----------------------+-----+----------+------+----------+--------+----------+-----------+----------+-----------+----------+----------+
| Cash Flow from Financing | | | | | | | | | | |
| Activities | | | | | | | | | | |
+----------------------------+----------+------+----------+--------+----------+-----------+----------+-----------+----------+----------+
| Proceeds from issue of | | | | | | - | | - | | - |
| equity shares | | | | | | | | | | |
+----------------------------+----------+------+----------+--------+----------+-----------+----------+-----------+----------+----------+
| Net Increase in Cash and | | | | | | 643 | | (1,962) | | (2,889) |
| Cash Equivalents | | | | | | | | | | |
+----------------------------+----------+------+----------+--------+----------+-----------+----------+-----------+----------+----------+
| | | | | | | | | | | | |
+----------------------+-----+----------+------+----------+--------+----------+-----------+----------+-----------+----------+----------+
| Cash and Cash Equivalents at beginning of | | | | 53 | | 2,926 | | 2,926 |
| the period | | | | | | | | |
+----------------------------------------------+----------+--------+----------+-----------+----------+-----------+----------+----------+
| Effect of exchange rate changes on cash held in foreign | | (1) | | 27 | | 16 |
| currencies | | | | | | |
+------------------------------------------------------------------+----------+-----------+----------+-----------+----------+----------+
| | | | | | | | | | | | |
+----------------------+-----+----------+------+----------+--------+----------+-----------+----------+-----------+----------+----------+
| Cash and Cash Equivalents at end of | | | | | 695 | | 991 | | 53 |
| the period | | | | | | | | | |
+----------------------+-----+----------+------+----------+--------+----------+-----------+----------+-----------+----------+----------+
Notes:
1. Information
The financial information for the six months ended December 31st, 2009 and the
comparative amounts for the six months ended December 31st, 2008 are unaudited.
The financial information above does not constitute full statutory accounts
within the meaning of section 240 of the Companies Act 1985.
The Interim Financial Report has been prepared in accordance with IAS 34 Interim
Financial Reporting as adopted by the European Union. The accounting policies
and methods of computation used in the preparation of the Interim Financial
Report are consistent with those used in the Group 2009 Annual Report, which is
available at www.afdiamonds.com
2. No dividend is proposed in respect of the period.
3. Loss per share
Basic loss per share is computed by dividing the loss after taxation for the
year available to ordinary shareholders by the weighted average number of
ordinary shares in issue and ranking for dividend during the year.
Diluted loss per share is computed by dividing the loss after taxation for the
year by the weighted average number of ordinary shares is issue, adjusted for
the effect of all dilutive potential ordinary shares that were outstanding
during the year.
The following table sets forth the computation for basic and diluted earnings
per share (EPS):
+-------------+------------+--------+------------+--------+-------------+
| | 31 Dec | | 31 Dec | | 30 Jun |
| | 09 | | 08 | | 09 |
+-------------+------------+--------+------------+--------+-------------+
| | GBP | | GBP | | GBP |
+-------------+------------+--------+------------+--------+-------------+
| Numerator | | | | | |
+-------------+------------+--------+------------+--------+-------------+
| For | (204,863) | | (775,200) | | (1,059,875) |
| basic | | | | | |
| and | | | | | |
| diluted | | | | | |
| EPS | | | | | |
| retained | | | | | |
| loss | | | | | |
+-------------+------------+--------+------------+--------+-------------+
| | | | | | |
+-------------+------------+--------+------------+--------+-------------+
| Denominator | | | | | |
+-------------+------------+--------+------------+--------+-------------+
| For | 76,210,766 | | 76,210,766 | | 76,210,766 |
| basic | | | | | |
| and | | | | | |
| diluted | | | | | |
| EPS | | | | | |
+-------------+------------+--------+------------+--------+-------------+
| | | | | | |
+-------------+------------+--------+------------+--------+-------------+
| Basic | (0.27p) | | (1.02p) | | (1.39p) |
| and | | | | | |
| diluted | | | | | |
| EPS | | | | | |
+-------------+------------+--------+------------+--------+-------------+
| | | | | | |
+-------------+------------+--------+------------+--------+-------------+
The following potential ordinary shares are anti-dilutive and therefore excluded
from the weighted average number of shares for the purposes of the diluted
earnings per share.
+---------+--------+--------+--------+--------+--------+
| | 31 Dec | | 31 Dec | | 30 Jun |
| | 09 | | 08 | | 09 |
| | No. | | No. | | No. |
| | '000 | | '000 | | '000 |
| | | | | | |
+---------+--------+--------+--------+--------+--------+
| Share | 3,400 | | 3,400 | | 3,400 |
| options | | | | | |
+---------+--------+--------+--------+--------+--------+
| | | | | | |
+---------+--------+--------+--------+--------+--------+
4. Profit/(loss) on investment held at fair value
+---------------+---------+--------+---------+--------+---------+
| | 31 Dec | | 31 Dec | | 30 Jun |
| | 09 | | 08 | | 09 |
| | GBP'000 | | GBP'000 | | GBP'000 |
| | | | | | |
+---------------+---------+--------+---------+--------+---------+
| Fair | 19 | | (475) | | (550) |
| value | | | | | |
| profit/(loss) | | | | | |
| on financial | | | | | |
| asset | | | | | |
+---------------+---------+--------+---------+--------+---------+
| | | | | | |
+---------------+---------+--------+---------+--------+---------+
Profit or losses arise from the subsequent measurement of financial
assets at fair value through the profit and loss account in relation to the
group's interest in Stellar Diamonds Plc (formerly West African Diamonds Plc.)
5. Intangible Assets
+-------------+---------+--------+---------+--------+---------+
| | 31 Dec | | 31 Dec | | 30 Jun |
| | 09 | | 08 | | 09 |
+-------------+---------+--------+---------+--------+---------+
| Exploration | GBP'000 | | GBP'000 | | GBP'000 |
| and | | | | | |
| evaluation | | | | | |
| assets: | | | | | |
+-------------+---------+--------+---------+--------+---------+
| Cost | | | | | |
+-------------+---------+--------+---------+--------+---------+
| Opening | 3,511 | | 2,703 | | 2,703 |
| balance | | | | | |
+-------------+---------+--------+---------+--------+---------+
| Additions | 355 | | 434 | | 808 |
+-------------+---------+--------+---------+--------+---------+
| Closing | 3,866 | | 3,137 | | 3,511 |
| balance | | | | | |
+-------------+---------+--------+---------+--------+---------+
| | | | | | |
+-------------+---------+--------+---------+--------+---------+
Exploration and evaluation assets relates to expenditure incurred in mineral
exploration in Botswana.
The directors are aware that by its nature there is an inherent
uncertainty in exploration and evaluation, and therefore inherent uncertainty in
relation to the carrying value of capitalised exploration and evaluation assets.
The realisation of these intangible assets is dependent on the
successful discovery and development of economic resources, and is subject to a
number of significant potential risks including;
· Price fluctuations;
· Foreign exchange rates;
· Uncertainties over development and operational costs;
· Political and legal risks, including arrangements with governments for
licences, profit sharing and taxation;
· Currency exchange fluctuations and restrictions; and
· Foreign investment risks including increases in taxes, royalties and
renegotiation of contracts;
Should these prove unsuccessful the value included in the balance
sheet would be written off to the income statement.
Having reviewed the exploration and evaluation expenditure at 31
December 2009, the directors are satisfied that the value of the intangible
asset is not less than carrying value. This is supported by the fact that on
November 11th 2009, Lucara Diamond Corp, a company based on the Toronto Venture
Exchange, acquired a 71% share in the AK6 diamond project from De Beers. In
addition, Lucara Diamond Corp have given African Diamond plc a US$2m loan to
fund 40% of the cost of a feasibility study in respect of AK6 and for working
capital purposes.
Included in the exploration and evaluation assets are amounts of
GBP124,563 (Jun 09: GBP184,146) of wages and salaries and GBPNil (Jun 09:
GBP12,600) relating to equity-settled share based payment transactions during
the period.
6. Financial Assets
Financial assets carried at fair value through profit or loss
(FVTPL):
+----------------+---------+--------+---------+--------+---------+
| | 31 Dec | | 31 Dec | | 30 Jun |
| | 09 | | 08 | | 09 |
| | GBP'000 | | GBP'000 | | GBP'000 |
| | | | | | |
+----------------+---------+--------+---------+--------+---------+
| Non-derivative | | | | | |
| financial | 194 | | 250 | | 175 |
| assets | | | | | |
| designated as | | | | | |
| at FVTPL | | | | | |
+----------------+---------+--------+---------+--------+---------+
| | | | | | |
+----------------+---------+--------+---------+--------+---------+
The company purchased 5,000,000 shares (GBP1,000,000) in West African Diamonds
plc in January 2007. At the period end this investment represented 5.56% of the
issued share capital of West African Diamonds plc. On 22nd February 2010 West
African Diamonds plc merged with Stellar Diamonds Limited and the enlarged
entity was renamed Stellar Diamonds plc. African Diamonds plc now holds 1% of
the enlarged entity.
7. Non Current Liabilities
+---------+---------+--------+---------+--------+---------+
| | 31 Dec | | 31 Dec | | 30 Jun |
| | 09 | | 08 | | 09 |
| | GBP'000 | | GBP'000 | | GBP'000 |
| | | | | | |
+---------+---------+--------+---------+--------+---------+
| Loan | 1,233 | | 0 | | 0 |
| Lucara | | | | | |
| Diamond | | | | | |
| Corp | | | | | |
+---------+---------+--------+---------+--------+---------+
| | | | | | |
+---------+---------+--------+---------+--------+---------+
On November 11th 2009, Lucara Diamond Corp, a company based on the Toronto
Venture Exchange, acquired a 71% share in the AK6 diamond project from De
Beers. Lucara Diamond Corp have given African Diamond plc a US$2m loan to fund
40% of the cost of a feasibility study in respect of AK6 and for working capital
purposes.
8. The Interim Report for the six months to December 31st, 2009 was
approved by the Directors on 18th March 2010.
9. Copies of this announcement will be sent to shareholders and will be
available for inspection at the Companies Registered Office at 20-22 Bedford
Row, London WC1R 4JS. The Interim Report may also be viewed at African Diamonds
plc's website at www.afdiamonds.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR QDLFFBXFEBBE
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