TIDMPPC

RNS Number : 4195N

President Energy PLC

30 September 2021

30 September 2021

PRESIDENT ENERGY PLC

("President", "the Company" or "the Group")

Unaudited Interim Results for H1 2021

Current trading

President (AIM:PPC), the oil and gas upstream company with a diverse portfolio of production and exploration assets focused primarily in Latin America, announces its unaudited interim results for the six months ended 30 June 2021.

Selected Results Summary

 
 All numbers in US$ '000        H1 2021   H1 2020   F/Y 2020 
  unless stated 
 Average daily production, 
  boe                             2,648     2,747      2,714 
                               --------  --------  --------- 
 Average realised price per 
  boe (US$)                        39.6      31.2       30.0 
                               --------  --------  --------- 
 Revenue                         17,104    13,737     27,771 
                               --------  --------  --------- 
 Adjusted EBITDA                  4,536     1,049      2,115 
                               --------  --------  --------- 
 Free cash flow generation 
  from core operations            6,192     2,644      6,191 
                               --------  --------  --------- 
 Profit after tax but before 
  non-cash items                  2,132     1,779      2,039 
                               --------  --------  --------- 
 Loss for the period              3,376     4,035     11,285 
                               --------  --------  --------- 
 Group net debt                  16,746    11,342     16,492 
                               --------  --------  --------- 
 Administrative expenses 
  US$ per boe                       4.0       4.0        4.7 
                               --------  --------  --------- 
 Well operating costs US$ 
  per boe                          15.4      16.5       16.5 
                               --------  --------  --------- 
 

Selected Current Financial Metrics

 
 Net debt to forecast 12 month adjusted EBITDA at period 
  end                                                       1.8x 
 

Corporate and Financial Summary

   --      Group turnover of US$17.1 million up 24.5% over the same period in 2020 

-- Free cash flow from core operations of US$6.2 million up 134% over the same period in 2020 (1H 2020 US$2.6 million) and approximately equal to the whole of 2020

-- Adjusted EBITDA of US$4.5 million up 309% over the same period in 2020 and over 114% versus the full twelve months of 2020

-- Third party financial borrowings US$5.8 million (1H 2020 US$3.7 million) with the balance being covenant lite, long-term debt from an affiliate of our largest shareholder

-- Net profit after tax before non-cash items (comprising depletion, depreciation, amortisation, impairment, non-operating gains/losses and deferred tax) of US$2.1 million (1H 2020 US$1.8 million)

-- Loss for the period of US$3.4 million (1H 2020 US$4.0 million) after non-cash DDA charge of US$5.1 million (1H 2020 US$5.2 million)

-- Agreement signed with a substantial Northern Hemisphere state-owned energy company to farm in for a 50% participating interest in the Pirity Concession, Paraguay

-- Atome Limited formed as a UK intermediate holding company focusing on the commercial production, sales and marketing of hydrogen and ammonia

Operational Summary

-- Average Group net daily production in the period of 2,648 boepd down 2% on the previous year, impacted by a 34% decline in US production as explained below.

   --      Group production split 64% oil and 36% gas (1H 2020: 71% oil and 29% gas) 

-- New oil treatment plant in Puesto Flores constructed on time and within budget bringing estimated opex savings of some US$ 4 per barrel coming through in H2

   --      Well operating costs per boe decreased by 7% over same period last year 
   --      Four new gas wells successfully drilled 
   --      Positive results from secondary recovery pilot project in the main Puesto Flores field 

-- In Louisiana, both the Triche and Simmons 2 wells remain offline as they have for the last three months awaiting workover of the Triche well to reinstate production. The operation of the Triche well is required for the Simmons 2 well to operate, as the Simmons 2 well used the gas produced from the Triche for gas lift. The Triche well has not performed optimally all year due to the progressive breakdown of the downhole gravel pack used to constrain sand production. The frustrating delay in fixing the problem was materially exacerbated by the effects of Hurricane Ida which devastated the locality.

Current trading

-- Management reports show average Argentina monthly revenue for the first two months of Q3 2021 ran at the rate of US$2.9 million, a 21% increase over the monthly average of US$2.4 million in H1

-- Sales price for oil in Argentina improving and expected to show an 8% increase in H2 compared to H1

-- Drilling services contract signed for three firm wells to be drilled at the Puesto Guardian Concession commencing in October, including an option to retain the rig into the New Year for further wells after drilling of the third firm well.

-- Each new Puesto Guardian well is estimated to cost US$3.5 million and have a drilling time of 45 days with a mean success case initial projected oil production of 40 m(3) /d (250 bopd).

-- In Louisiana, the Company is planning for the workover of the Triche well to be completed by the end of October and the wells will work at the levels enjoyed last year namely at 300 boepd net to President half being oil. Realisation prices there are robust with oil currently at approximately U$70 per barrel.

-- President continues its focus on reducing costs with the objective of further reducing its operational expenses next year assisted by the savings from the new treatment plant in Puesto Flores

-- On current trading, average production for H2 2021 in Argentina is estimated to be approximately 2,700 boepd

-- Following prolongation of the Pirity as well as the Hernandarias exploration concessions terms, approval by the relevant regulatory authorities in Paraguay to the transfer of interests contemplated under the farm-out agreements is expected in the near future, with completion of the Paraguay farm-out following thereafter

-- In relation to Atome, significant work is being progressed as is an intended spin off and separate flotation on the London Stock Exchange. Atome currently has no attributable value in the Group's balance sheet

-- Subject to appropriate advice and approvals, President is contemplating declaring a dividend in specie of certain of its holdings in Atome at or around admission to the stock market.

Commenting on today's announcement, Peter Levine, Chairman said:

"The results for the first half of the year demonstrate an operationally profitable and solid business with very significant near-term potential.

Within the next six months, we look forward to the results of the three key value drivers mentioned below, each of which can have a materially beneficial impact on the Group.

"Preparation works for the commencement of drilling at the end of October of at least three wells in Salta Province, Argentina are underway.

"The conditions attaining to the long-awaited farm-out in Paraguay are well on their way to being satisfied with drilling of the large-scale oil prospect scheduled for H1 2022.

"Finally, work is progressing towards the spin-off and separate flotation of Atome, our hydrogen and ammonia production business later this year, subject to regulatory approval. Whilst no guarantee can be given as to both timing and suitability, on the assumption that the flotation does take place, then subject to court sanction of the cancellation of the share premium account of the Group recently approved by shareholders, the Company will have at its disposal adequate levels of distributable reserves from which to make a declaration of dividend in specie of certain of its Atome shares, should the Directors so determine.

"Accordingly, it's going to be a very busy next few months and we look forward to keeping shareholders appraised on material developments as and when they occur."

Peter Levine

Executive Chairman

30 September 2021

* Adjusted EBITDA means Operating Profit before depreciation, depletion and amortisation, adjusted for non-cash share-based expenses and certain non-recurring items. Non-recurring items include where relevant workovers .

* Current Enterprise Value (EV) is calculated by taking the market value of shares in issue at current US$ fx rates and adding the value of net debt.

* Cost per boe metrics are adjusted for costs management consider are exceptional and non-recurring in nature

* Free cash flow from core operations is defined in the 2020 Annual Report. The treasury income which has been included is the exchange (losses)/gains on cash and cash equivalents as detailed in the Consolidated Statement of Cashflows

The 2021 Interim Report and Financial Statements will be made available at www.presidentenergyplc.com

This announcement contains inside information for the purposes of article 7 of Regulation 596/2014.

Notes to Editors

President Energy is an oil and gas company listed on the AIM market of the London Stock Exchange (PPC.L) primarily focused in Argentina, with a diverse portfolio of operated onshore producing and exploration assets. The Company has independently assessed 1P reserves in excess of 15 MMboe and 2P reserves of more than 26 MMboe.

The Company has operated interests in the Puesto Flores and Estancia Vieja, Puesto Prado and Las Bases Concessions, and Angostura contract area in Rio Negro Province, Argentina and in the Puesto Guardian Concession, in the Noreste Basin in NW Argentina. The Company is focused on growing production in the near term in Argentina. Alongside this, President Energy has cash generative production assets in Louisiana, USA and further significant exploration and development opportunities through its acreage in Paraguay and Argentina.

President Energy's second largest shareholder is Trafigura, one of the leading commodity and logistics companies in the World, with operations and a refinery in Argentina. The Company is actively pursuing development / acquisition of high-quality production and assets capable of delivering positive cash flows and shareholder returns. With a strong institutional base of support and an in-country management teams, President Energy has world class standards of corporate governance, environmental and social responsibility.

Contact:

 
 President Energy PLC 
  Rob Shepherd, Finance Director 
  Nikita Levine, Investor Relations        +44 (0) 207 016 7950 
 finnCap (Nominated Advisor and Joint 
  Broker) 
  Christopher Raggett, Charlie Beeson    +44 (0) 207 220 0500 
 

Glossary of terms

   Boe(pd)           Barrels of oil equivalent (per day) 
   Bopd                Barrels of oil per day 
   DDA                 Depletion, depreciation and. amortisation 
   EV                    Enterprise value meaning market capitalisation plus debt 
   MMbbls            Million barrels of oil 
   MMboe             Million barrels of oil equivalent 
   MMBtu              Million British Thermal Units (gas) 
   M(3) /d                 Cubic metres of production of gas or oil per day (as the case may be) 

Condensed Consolidated Statement of Comprehensive Income

Six months ended 30 June 2021

 
                                                    6 months      6 months      Year to 
                                                      to 30         to 30 
                                                       June          June       31 Dec 
                                                      2021          2020         2020 
                                                   (Unaudited)   (Unaudited)   (Audited) 
                                           Note      US$000        US$000       US$000 
 Continuing Operations 
 Revenue                                                17,104        13,737      27,771 
 Cost of sales 
 Depletion, depreciation & amortisation                (5,108)       (5,142)    (10,109) 
 Other cost of sales                                  (11,493)      (11,461)    (21,666) 
 Total cost of sales                           3      (16,601)      (16,603)    (31,775) 
                                                  ------------  ------------  ---------- 
 
 Gross profit/(loss)                                       503       (2,866)     (4,004) 
 Administrative expenses                       4       (1,942)       (1,988)     (4,648) 
 Operating profit / (loss) before 
  impairment charge 
                                                  ------------  ------------  ---------- 
   and non-operating gains / (losses)                  (1,439)       (4,854)     (8,652) 
 Presented as: 
 Adjusted EBITDA                                         4,536         1,049       2,115 
 Non-recurring items                                     (581)         (368)        (86) 
 EBITDA excluding share options                          3,955           681       2,029 
 Depreciation, depletion & amortisation                (5,134)       (5,207)    (10,271) 
 Share based payment expense                             (260)         (328)       (410) 
 Operating profit / (loss)                             (1,439)       (4,854)     (8,652) 
-----------------------------------------  -----  ------------  ------------ 
 
 Impairment charge                             5             -         (125)     (1,884) 
 Non-operating gains /(losses)                 6             2            62       (137) 
 Profit/(loss) after impairment 
  and non-operating 
                                                  ------------  ------------  ---------- 
   gains and (losses)                                  (1,437)       (4,917)    (10,673) 
 
 Finance income                                7           855         3,604       4,506 
 Finance costs                                 7       (2,418)       (2,178)     (4,084) 
 
 Profit / (loss) before tax                            (3,000)       (3,491)    (10,251) 
 
 Income tax (charge)/credit 
 Current tax income tax (charge)/credit                      -             -         (2) 
 Deferred tax being a provision 
  for future taxes                                       (376)         (544)     (1,032) 
 Total income tax (charge)/credit                        (376)         (544)     (1,034) 
 
 Profit/(loss) for the period from 
  continuing operations                                (3,376)       (4,035)    (11,285) 
 
 Other comprehensive income 
  - Items that may be reclassified 
   subsequently 
   to profit or loss 
 Exchange differences on translating 
  foreign operations                                         -             -           - 
 Total comprehensive profit/(loss) 
  for the period 
   attributable to the equity holders 
    of the Parent Company                              (3,376)       (4,035)    (11,285) 
                                                  ============  ============  ========== 
 
 Earnings/ (loss )per share from 
  continuing operations                             US cents      US cents     US cents 
 Basic earnings/ (loss) per share              8        (0.17)        (0.32)      (0.69) 
 Diluted earnings / (loss) per share           8        (0.17)        (0.32)      (0.69) 
                                                  ============  ============  ========== 
 

Condensed Consolidated Statement of Financial Position

As at 30 June 2021

 
                                            30 June       30 June      31 Dec 
                                             2021          2020         2020 
                                          (Unaudited)   (Unaudited)   (Audited) 
                                            US$000        US$000       US$000 
                                  Note 
 ASSETS 
 Non-current assets 
 Intangible exploration and 
  evaluation assets                   9        52,794        55,657      52,703 
 Goodwill                                         705           705         705 
 Property, plant and equipment        9        56,787        50,913      54,489 
                                         ------------  ------------  ---------- 
                                              110,286       107,275     107,897 
 
 Deferred tax                                     507         1,244         567 
 Other non-current assets                         103           102         102 
                                              110,896       108,621     108,566 
                                         ------------  ------------  ---------- 
 Current assets 
 Trade and other receivables         10         6,299         4,387       4,554 
 Inventory                                      1,336             -       1,336 
 Cash and cash equivalents                        555         3,614       1,144 
                                                8,190         8,001       7,034 
                                         ------------  ------------  ---------- 
 
 TOTAL ASSETS                                 119,086       116,622     115,600 
                                         ============  ============  ========== 
 
 LIABILITIES 
 Current liabilities 
 Trade and other payables            11        14,897         8,481      10,287 
 Borrowings                          12         1,584         1,488       1,539 
                                               16,481         9,969      11,826 
                                         ------------  ------------  ---------- 
 Non-current liabilities 
 Trade and other payables            11         4,631         2,533       3,536 
 Long-term provisions                           6,985         5,883       6,399 
 Borrowings                          12        15,717        13,468      16,097 
 Deferred tax                                   1,691         1,564       1,375 
                                               29,024        23,448      27,407 
                                         ------------  ------------  ---------- 
 
 TOTAL LIABILITIES                             45,505        33,417      39,233 
                                         ============  ============  ========== 
 
 EQUITY 
 Share capital                                 35,868        35,506      35,708 
 Share premium                                258,162       257,863     257,992 
 Translation reserve                         (50,240)      (50,240)    (50,240) 
 Profit and loss account                    (178,007)     (167,381)   (174,631) 
 Other reserve                                  7,798         7,457       7,538 
 
 TOTAL EQUITY                                  73,581        83,205      76,367 
                                         ============  ============  ========== 
 
 TOTAL EQUITY AND LIABILITIES                 119,086       116,622     115,600 
                                         ============  ============  ========== 
 

Condensed Consolidated Statement of Changes in Equity

 
                           Share      Share     Translation    Profit      Other      Total 
                           capital    premium     reserve      and loss    reserve 
                                                               account 
                           US$000     US$000      US$000       US$000      US$000    US$000 
 
 Balance at 1 January 
  2020                      24,465    245,692      (50,240)   (163,346)      7,416    63,987 
                         ---------  ---------  ------------  ----------  ---------  -------- 
 
 Share-based payments            -          -             -           -         41        41 
 Issue of ordinary 
  shares                     2,603      2,213                                          4,816 
 Costs of issue                         (434)             -           -          -     (434) 
 Debt conversion             3,344      3,869                                          7,213 
 Subscriptions               4,490      6,010                                         10,500 
 Issued in settlement          604        513             -           -          -     1,117 
 Transactions with 
  owners                    11,041     12,171             -           -         41    23,253 
 
 Loss for the period             -          -             -     (4,035)          -   (4,035) 
 Exchange differences 
  on 
   translation                   -          -             -           -          -         - 
 Total comprehensive 
   income/(loss)                 -          -             -     (4,035)          -   (4,035) 
 
 Balance at 30 June 
  2020                      35,506    257,863      (50,240)   (167,381)      7,457    83,205 
 
 Share-based payments            -          -             -           -         81        81 
 Issue of ordinary 
  shares                         1          -             -           -          -         1 
 Subscription                  201        129             -           -          -       330 
 Issued in settlement            -          -             -           -          -         - 
 Transactions with 
  owners                       202        129             -           -         81       412 
 
 Loss for the period             -          -             -     (7,250)          -   (7,250) 
 Exchange differences 
  on 
   translation                   -          -             -           -          -         - 
 Total comprehensive 
   income/(loss)                 -          -             -     (7,250)          -   (7,250) 
 
 Balance at 1 January 
  2021                      35,708    257,992      (50,240)   (174,631)      7,538    76,367 
 
 Share-based payments            -          -             -           -        260       260 
 Subscriptions                 160        170             -           -          -       330 
 Issued in settlement            -          -             -           -          -         - 
 Transactions with 
  owners                       160        170             -           -        260       590 
 
 Loss for the period             -          -             -     (3,376)          -   (3,376) 
 Exchange differences 
  on 
   translation                   -          -             -           -          -         - 
 Total comprehensive 
   income/(loss)                 -          -             -     (3,376)          -   (3,376) 
 
 Balance at 30 June 
  2021                      35,868    258,162      (50,240)   (178,007)      7,798    73,581 
                         =========  =========  ============  ==========  =========  ======== 
 

Condensed Consolidated Statement of Cash Flows

Six months ended 30 June 2021

 
                                                6 months      6 months      Year to 
                                                  to 30         to 30 
                                                   June          June       31 Dec 
                                                  2021          2020         2020 
                                               (Unaudited)   (Unaudited)   (Audited) 
                                                 US$000        US$000       US$000 
 
 
 Cash flows from operating activities 
  - (Note 13) 
 Cash generated/(consumed) by operations             3,571         2,903       4,438 
 Interest received                                      39            69         105 
 Taxes paid                                              -             -           - 
                                                     3,610         2,972       4,543 
                                              ------------  ------------  ---------- 
 
 Cash flows from investing activities 
 Expenditure on exploration and evaluation 
  assets                                              (91)          (32)       (173) 
 Expenditure on development and production 
  assets 
    (excluding increase in provision 
     for decommissioning)                          (2,446)       (5,990)    (11,395) 
 Proceeds from asset sales                              31            30          78 
 Acquisition & licence extension in 
  Argentina                                          (284)         (165)       (678) 
 Release of bond with state authorities                  -           249         249 
 USA acquisition                                         -         (158)       (158) 
                                                   (2,790)       (6,066)    (12,077) 
                                              ------------  ------------  ---------- 
 
 Cash flows from financing activities 
 Proceeds from issue of shares (net 
  of expenses)                                         330         4,882       5,213 
 Loan drawdown                                       1,410           856       4,954 
 Repayment of borrowings                           (1,965)       (2,194)     (5,076) 
 Payment of loan interest and fees                   (857)         (644)       (696) 
 Repayment of obligations under leases               (638)         (359)       (868) 
                                                   (1,720)         2,541       3,527 
                                              ------------  ------------  ---------- 
 
 
 Net increase/(decrease) in cash and 
  cash equivalents                                   (900)         (553)     (4,007) 
 Opening cash and cash equivalents 
  at beginning of year                               1,144           895         895 
 Exchange (losses)/gains on cash and 
  cash equivalents                                     311         3,272       4,256 
 Closing cash and cash equivalents                     555         3,614       1,144 
                                              ============  ============  ========== 
 

Notes to the Half-Yearly Financial Statements

Six months ended 30 June 2021

1 Nature of operations and general information

President Energy PLC and its subsidiaries' (together "the Group") principal activities are the exploration for and the evaluation and production of oil and gas.

President Energy PLC is the Group's ultimate parent company. It is incorporated and domiciled in England. The Group has onshore oil and gas production and reserves in Argentina and the USA. The Group also has onshore exploration assets in Paraguay and Argentina. The address of President Energy PLC's registered office is Carrwood Park, Selby Road, Leeds, LS15 4LG. President Energy PLC's shares are listed on the Alternative Investment Market of the London Stock Exchange.

These condensed consolidated interim financial statements (the interim financial statements) have been approved for issue by the Board of Directors on 29th September 2021. The financial information for the year ended 31 December 2020 set out in this interim report does not constitute statutory accounts as defined in Section 434 of the Companies Act 2006. The financial information for the six months ended 30 June 2021 and 30 June 2020 was neither audited nor reviewed by the auditor. The Group's statutory financial statements for the year ended 31 December 2020 have been filed with the Registrar of Companies. The auditor's report on those financial statements was unqualified and did not draw attention to any matters by way of emphasis and did not contain a statement under section 498(2) or (3) of the Companies Act 2006

2 Basis of preparation

The interim financial statements do not include all of the information required for full annual financial statements and should be read in conjunction with the consolidated financial statements of the Group for the year ended 31 December 2020, which have been prepared under IFRS.

These financial statements have been prepared under the historical cost convention, except for any derivative financial instruments which have been measured at fair value. The accounting policies adopted in the 2021 interim financial statements are the same as those adopted in the 2020 Annual report and accounts.

Notes to the Half-Yearly Financial Statements

Six months ended 30 June 2021 - continued

 
                                                   6 months      6 months      Year to 
                                                     to 30         to 30 
                                                      June          June       31 Dec 
                                                     2021          2020         2020 
                                                  (Unaudited)   (Unaudited)   (Audited) 
                                                    US$000        US$000       US$000 
 3 Cost of 
  Sales 
  Depreciation                                          5,108         5,142      10,109 
  Royalties & production 
   taxes                                                3,535         2,839       5,176 
  Well operating costs                                  7,958         8,622      16,490 
                                                       16,601        16,603      31,775 
                                                 ============  ============  ========== 
 4 Administrative expenses 
  Directors and staff cost                              1,306         1,348       2,391 
  Share-based payments                                    260           328         410 
  Depreciation                                             26            65         162 
  Other                                                   350           247       1,685 
                                                        1,942         1,988       4,648 
                                                 ============  ============  ========== 
 5 Impairment (credit) / charge 
  Matorras & Ocultar in Argentina 
   (intangible)                                             -             -       1,759 
  Jefferson Island in USA 
   (intangible)                                             -           125         125 
                                                            -           125       1,884 
                                                 ============  ============  ========== 
 6 Non-operating (gains) / losses 
  Reversal of provision for 
   doubtful taxes                                          29             -          19 
  Arising on lease modifications                            -          (32)        (86) 
  Other (gains) / losses                                 (31)          (30)         204 
                                                          (2)          (62)         137 
                                                 ============  ============  ========== 
 7 Finance income & costs 
  Interest income                                          39            69         105 
  Exchange gains                                          816         3,535       4,401 
  Finance income                                          855         3,604       4,506 
                                                 ============  ============  ========== 
 
  Interest & similar charges                            2,418         2,178       4,084 
              Exchange losses                               -             -           - 
  Finance costs                                         2,418         2,178       4,084 
                                                 ============  ============  ========== 
 8 Earnings / (loss) per share 
              Net profit / (loss) for 
               the period attributable 
                to the equity holders 
                 of the 
    Parent Company                                    (3,376)       (4,035)    (11,285) 
                                                 ============  ============  ========== 
 
                                                       Number        Number      Number 
                                                         '000          '000        '000 
              Weighted average number 
  of shares in issue                                2,030,951     1,262,087   1,641,684 
                                                 ============  ============  ========== 
 
              Earnings /(loss) per share             US cents      US cents    US cents 
  Basic                                                (0.17)        (0.32)      (0.69) 
  Diluted                                              (0.17)        (0.32)      (0.69) 
                                                 ============  ============  ========== 
 

Notes to the Half-Yearly Financial Statements

Six months ended 30 June 2021 - continued

 
 9 Non-current assets 
                                                Property 
                                                  Plant 
                                        E&E        and       Total 
                                      Assets    Equipment 
                                      US$000     US$000     US$000 
  Cost 
  At 1 January 2020                   146,287     137,063   283,350 
  Additions                                32       1,194     1,226 
  Acqusition in USA                         -         172       172 
  Right of use assets (IFRS16)              -         662       662 
  At 30 June 2020                     146,319     139,091   285,410 
  Additions                               141       7,780     7,921 
  Transfer to current assets          (1,336)           -   (1,336) 
  Right of use assets (IFRS16)              -         707       707 
  Disposals                                 -       (289)     (289) 
  At 1 January 2021                   145,124     147,289   292,413 
  Additions                                91       5,968     6,059 
  Right of use assets (IFRS16)              -       1,464     1,464 
  At 30 June 2021                     145,215     154,721   299,936 
                                     ========  ==========  ======== 
 
  Depreciation/Impairment 
  At 1 January 2020                    90,537      82,971   173,508 
  Charge for the period                   125       5,207     5,332 
                                     --------  ----------  -------- 
  At 30 June 2020                      90,662      88,178   178,840 
  Impaired                              1,759           -     1,759 
  Disposals                                 -       (442)     (442) 
  Charge for the period                     -       5,064     5,064 
                                     --------  ----------  -------- 
  At 1 January 2021                    92,421      92,800   185,221 
  Impaired                                  -           -         - 
  Charge for the period                     -       5,134     5,134 
  At 30 June 2021                      92,421      97,934   190,355 
                                     ========  ==========  ======== 
 
 
  Net Book Value 30 June 2021          52,794      56,787   109,581 
                                     ========  ==========  ======== 
 
  Net Book Value 30 June 2020          55,657      50,913   106,570 
                                     ========  ==========  ======== 
 
  Net Book Value 31 December 2020      52,703      54,489   107,192 
                                     ========  ==========  ======== 
 

Notes to the Half-Yearly Financial Statements

Six months ended 30 June 2021 - continued

 
                                                    30 June       30 June      31 Dec 
                                                     2021          2020         2020 
                                                  (Unaudited)   (Unaudited)   (Audited) 
                                                    US$000        US$000       US$000 
 10 Trade and other receivables 
  Trade and other receivables                           6,155         4,219       4,141 
  Prepayments                                             144           168         413 
                                                        6,299         4,387       4,554 
                                                 ============  ============  ========== 
 11. Trade and other payables 
                  Current 
  Trade and other payables                             14,023         7,755       9,537 
  Current portion of leases                               874           726         750 
                                                       14,897         8,481      10,287 
                                                 ============  ============  ========== 
                  Non-current 
  Non-current trade and other 
   payables                                             1,990         1,444       1,786 
  Non-current portion of 
   leases                                               2,641         1,089       1,750 
                                                        4,631         2,533       3,536 
                                                 ============  ============  ========== 
  Total carrying value                                 19,528        11,014      13,823 
                                                 ============  ============  ========== 
 12 Borrowings 
                  Current 
  Bank loan                                                84         1,488       1,539 
                  Promissory notes                      1,500             -           - 
                                                        1,584         1,488       1,539 
                  Non-Current 
  IYA Loan                                             11,442        11,074      11,175 
  Bank loan                                             4,275         2,394       4,922 
                                                       15,717        13,468      16,097 
                                                 ------------  ------------  ---------- 
  Total carrying value of 
   borrowings                                          17,301        14,956      17,636 
                                                 ============  ============  ========== 
 

Notes to the Half-Yearly Financial Statements

Six months ended 30 June 2021 - continued

 
 13 Reconciliation of operating profit to net cash 
  outflow from operating activities 
 
                                             6 months      6 months      Year to 
                                            to 30 June    to 30 June     31 Dec 
                                               2021          2020         2020 
                                            (Unaudited)   (Unaudited)   (Audited) 
                                              US$000        US$000       US$000 
 Profit/(loss) from operations 
  before taxation                               (3,000)       (3,491)    (10,251) 
  Interest on bank deposits                        (39)          (69)       (105) 
  Interest payable and loan fees                  2,418         2,178       4,084 
  Depreciation and impairment of 
   property, 
    plant and equipment                           5,134         5,207      10,271 
  Impairment charge                                   -           125       1,884 
  Gain on non-operating transaction                 (2)          (62)         137 
  Share-based payments                              260           328         410 
  Foreign exchange difference                     (816)       (3,535)     (4,401) 
 
 Operating cash flows before movements 
  in working capital                              3,955           681       2,029 
 
  (Increase)/decrease in receivables            (1,933)         1,999       1,421 
  (Increase)/decrease in inventory                    -            28          28 
  (Decrease)/increase in payables                 1,549           195         960 
 
 Net cash generated by/(used in) 
   operating activities                           3,571         2,903       4,438 
                                           ============  ============  ========== 
 

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END

IR XKLFLFKLBBBE

(END) Dow Jones Newswires

September 30, 2021 01:59 ET (05:59 GMT)

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