TIDMSVE
RNS Number : 8747Z
Starvest PLC
26 May 2021
26 May 2021
Half-year report - six months ended 31 March 2021
Chairman's statement
Over the six months to 30 March 2021, we continued to experience
the economic effects of COVID-19 but thankfully natural resources
were very resilient compared to other investment sectors. However,
we did note a change in global sentiment from early January 2021 as
several commodities, including precious metals, declined in price,
which had a marked impact on the near-record-high share price
achieved toward the end of 2020. The natural resources sector
managed to navigate the situation, and post period end we've
continued to see gains.
Starvest's focus on precious metals has meant that it has
weathered the period reasonably well and while the Net Asset Value
reduced from GBP17.95m as at 30 September 2020 to GBP16.72m to 30
March 2021, it has increased more than 250% over the 12 months from
30 March 2020 (NAV GBP4.66m). This annual increase is mainly due to
the performance of our holdings in investee company Greatland Gold
plc and, to a lesser extent, Ariana Resources plc. Post period end
we have continued to see gains in the Net Asset Value, which was
GBP19.09m as at 30 April 2021.
Net Assets, as presented in the Statement of Financial Position
in this Half Yearly report, (which differ from the Net Asset Values
stated above as Net Assets include provision for deferred taxation
and current liabilities) declined from GBP15.88m as at 30 September
2020 to GBP14.66m as at 30 March 2021, but increased more than 220%
over the 12 months from 30 March 2020 (Net Assets GBP4.56m).
While many sectors have not yet recovered to pre-pandemic
levels, the mining sector has made significant gains and is
forecast to continue to do so with economic recovery and
climate-focused projects at the forefront of government
infrastructure spending plans, which we expect will benefit the
base and precious metals sectors. Quantitative easing remains a
tool of choice for larger global economies and this provides a firm
foundation to support the price of precious metals going
forward.
Continuing to advance its Paterson project, Greatland Gold
(LON:GGP) has commenced a box cut to establish a decline at the
Havieron gold-copper deposit which continues to yield many exciting
drill results. Growth drilling by operating partners Newcrest
Mining is underway which has the potential to significantly
increase the resource base at the project. A Pre-Feasibility Study
is expected to be delivered in H2 2021. Greatland Gold have also
been conducting their own exploration with new programmes
commencing recently on the Paterson Juri JV area. In addition, last
season's Scallywag drilling has shown strong indications of
mineralisation in the area. We look forward to further encouraging
news from Greatland Gold, which is well-funded and has an
experienced team in place.
Ariana Resources (LON:AAU) reported robust silver-gold
production figures from its Kiziltepe Mine, exceeding guidance for
2020 and making plans to expand its processing plant. Its recent
deal with Ozaltin has provided the company with good working
capital as well as offering the possibility of future dividends to
shareholders following a capital restructure.
Cora Gold (LON:CORA) has recently released exciting results from
its latest drill programme at its flagship Sanankoro gold project.
This is the start of its largest drill programme to date with up to
35,000m of drilling planned for completion by late July 2021 and
the expected announcement of an updated resource statement.
Kefi Minerals (LON:KEFI) continue with construction of the Tulu
Kapi gold mine in Ethiopia and remain on target to start full
production in 2022. Kefi has also made significant advances in its
exploration of the Hawiah project in Saudi Arabia and has commenced
a Pre-Feasibility study of the deposit.
Other investee companies continue their efforts as well. Oracle
Power (LON:ORCP) has expanded its remit and taken up gold
exploration in Western Australia. Sunrise Resources (LON:SRES) is
advancing its pozzolan-perlite project in Nevada USA towards mine
permitting, while Alba (LON:ALBA) is focusing on development of
Welsh gold deposits.
Overall, throughout the past year to 30 March 2021, our strategy
to focus on precious metal investments has been successful and
resulted in significant increase in value for our overall
portfolio. We continue to focus on seeking out value-adding
opportunities in the precious metals sector and believe a robust
gold price going forward will support current and future
strategies.
Callum N Baxter
Chairman & Chief Executive
26 May 2021
Statement of Comprehensive Income
6 months 6 months Year ended
to 31 March to 31 March 30 September
2021 2020 2020
Unaudited Unaudited Audited
GBP GBP GBP
Administrative expenses (147,689) (150,337) (303,259)
Gain on disposal of financial
assets 19,313 22,209 59,146
Amounts written off against
financial assets (1,088,092) (86,103) (104,116)
Movement in fair value of financial
assets through profit and loss - 2,747,065 16,097,296
--------------- ------------- --------------
Operating profit (1,216,468) 2,532,834 15,749,067
Interest receivable - 20 38
--------------- ------------- --------------
Profit on ordinary activities
before tax (1,216,468) 2,532,854 15,749,105
Tax on profit on ordinary activities - - (2,003,618)
--------------- ------------- --------------
(Loss)/profit attributable to
equity holders of the parent (1,216,468) 2,532,854 13,745,487
=============== ============= ==============
Earnings per share - see note
3 (2.11) pence 4.53 pence 24.22 pence
Basic (2.11) pence 4.53 pence 24.22 pence
Diluted
Statement of Financial Position
6 months 6 months Year ended
ended 31 ended 31 30 September
March 2021 March 2020 2020
Unaudited Unaudited Audited
GBP GBP GBP
Fixed assets
Financial assets through
profit and loss 16,596,261 4,537,810 17,825,053
------------- ------------ --------------
Total fixed assets 16,596,261 4,537,810 17,825,053
------------- ------------ --------------
Current assets
Trade and other receivables 29,893 22,738 31,047
Cash and cash equivalents 125,344 118,078 120,365
------------- ------------ --------------
Total current assets 155,237 140,816 151,412
------------- ------------ --------------
Current liabilities
Trade and other payables (84,716) (120,672) (93,215)
------------- ------------ --------------
Total current liabilities (84,716) (120,672) (93,215)
------------- ------------ --------------
Non-current liabilities
Provision for deferred tax (2,003,618) - (2,003,618)
------------- ------------ --------------
Total non-current liabilities (2,003,618) - (2,003,618)
------------- ------------ --------------
Net assets 14,663,164 4,557,954 15,879,632
============= ============ ==============
Capital and reserves
Called up share capital 575,740 559,279 575,740
Share premium account 1,779,414 1,686,829 1,779,414
Retained earnings 12,308,010 2,311,846 13,524,478
------------- ------------ --------------
Total equity shareholders'
funds 14,663,164 4,557,954 15,879,632
============= ============ ==============
Statement of Cash Flows
6 months 6 months Year ended
ended 31 ended 31 30 September
March 2021 March 2020 2020
Unaudited Unaudited Audited
GBP GBP GBP
Cash flows from operating activities
Operating (loss)/profit (1,216,468) 2,532,834 15,749,066
Net interest receivable - 20 38
Shares issued in lieu of fees - - 109,046
Increase in investment provisions 1,088,092 86,103 104,116
Movement in fair value of investments - (2,747,065) (16,097,296)
Profit on sale of current asset
investments (19,313) (22,354) (59,290)
Decrease/(increase) in debtors 1,154 91,800 83,491
(Decrease)/increase in creditors (8,499) 54,669 27,212
------------ ------------ --------------
Net cash used in operating activities (155,034) (3,993) (83,617)
------------ ------------ --------------
Cash flows from investing activities
Purchase of current asset investments - - -
Sale of current asset investments 160,013 61,904 143,815
Net cash generated from investing
activities 160,013 61,904 143,815
------------ ------------ --------------
Cash flows from financing activities
Proceeds from issue of shares - - -
Transaction costs of issue of - - -
shares
Net cash flows from financing - - -
activities
------------ ------------ --------------
Net increase in cash and cash
equivalents 4,979 57,911 60,198
Cash and cash equivalents at
beginning of period 120,365 60,167 60,167
------------ ------------ --------------
Cash and cash equivalents at
end of period 125,344 118,078 120,365
============ ============ ==============
Statement of Changes in Equity
Total Equity attributable to
Share capital Share premium Retained earnings shareholders
GBP GBP GBP GBP
At 30 September 2019 559,279 1,686,829 (221,009) 2,025,099
============= ============= ================= ================================
Profit for the period - - 2,532,854 2,532,854
------------- ------------- ----------------- --------------------------------
Total recognised income and
expenses for the period - - 2,532,854 2,532,854
Shares issued - - - -
Total contribution by and
distributions to owners - - - -
At 31 March 2020 559,279 1,686,829 2,311,845 4,557,953
============= ============= ================= ================================
Profit for the period - - 11,212,633 11,212,633
------------- ------------- ----------------- --------------------------------
Total recognised income and
expenses for the period - - 11,212,633 11,212,633
Shares issued 16,461 92,585 - 109,046
Total contribution by and
distributions to owners 16,461 92,585 - 109,046
At 30 September 2020 575,740 1,779,414 13,524,478 15,879,632
============= ============= ================= ================================
Loss for the period - - (1,216,468) (1,216,468)
Total recognised income and
expenses for the period - - (1,216,468) (1,216,468)
Shares issued - - - -
Total contributions by and - - - -
distributions to owners
At 31 March 2021 575,740 1,779,414 12,308,010 14,663,164
============= ============= ================= ================================
Interim report notes
1. Interim report
The information relating to the six month periods to 31 March
2021 and 31 March 2020 is unaudited.
The information relating to the year ended 30 September 2020 is
extracted from the audited accounts of the Company which have been
filed at Companies House and on which the auditors issued an
unqualified audit report.
2. Basis of preparation
This report has been prepared in accordance with applicable
United Kingdom accounting standards, including Financial Reporting
Standard 102 - 'The Financial Reporting Standard applicable in the
United Kingdom and Republic of Ireland' ('FRS102'), and with the
Companies Act 2006. Although the information included herein does
not constitute statutory accounts within the meaning of section 435
of the Companies Act 2006, the accounting policies that have been
applied are consistent with those adopted for the statutory
accounts for the year ended 30 September 2020.
The Company will report again for the full year to 30 September
2021.
The Company's investments at 31 March 2021 are stated at the
lower of cost and net realisable value or the valuation adopted at
30 September 2020 or the current market value based on market
quoted prices at the close of business. The Chairman's statement
includes a valuation based on market quoted prices at 31 March
2021.
3. Earnings per share
6 months 6 months Year ended
ended 31 ended 31 30 September
March 2021 March 2020 2020
Unaudited Unaudited Audited
GBP GBP GBP
(Loss)/profit for the year: (1,216,468) 2,532,854 13,745,487
--------------- ------------- --------------
Weighted average number of
Ordinary shares of GBP0.01
in issue 57,573,986 55,927,832 56,742,071
--------------- ------------- --------------
Earnings per share - basic (2.11) pence 4.53 pence 24.22 pence
and diluted
=============== ============= ==============
Investment portfolio
Starvest now holds trade investments in the companies listed
below; of these the following companies comprised 99% of the
portfolio value as at 31 March 2021:
Exploration for oil in England,
* Alba Mineral Resources plc lead-zinc in Ireland, uranium in
Mauritania and graphite in Greenland
www.albamineralresources.com
Gold-silver production and exploration
* Ariana Resources plc in Turkey
www.arianaresources.com
Gold exploration in West Africa
* Cora Gold Limited www.coragold.com
Gold exploration and development
* Greatland Gold plc in Australia
www.greatlandgold.com
Gold and copper exploration and
* Kefi Minerals plc development in Ethiopia and Saudi
Arabia
www.kefi-minerals.com
Coal development in Pakistan and
* Oracle Power plc gold exploration in Australia
www.oraclecoalfields.com
Other investments
The remaining non-core investments are available for sale when
the conditions are deemed to be right:
Oil and gas exploration in Bulgaria
* Block Energy plc (formerly Goldcrest Resources plc) www.goldcrestresourcesplc.com
Gold exploration in South America
* Minera IRL Limited www.minera-irl.com
Exploration for industrial minerals
* Sunrise Resources plc in United States, Finland, Australia
and Ireland
www.sunriseresourcesplc.com
Other investee companies are listed in the Company's 2020 annual
report available on request or from the Company web site -
www.starvest.co.uk
Copies of this interim report are available free of charge by
application in writing to the Company Secretary at the Company's
registered office, Salisbury House, London Wall, London EC2M 5PS,
by email to info@starvest.co.uk or from the Company's website -
www.starvest.co.uk
Enquiries to:
Starvest PLC
Callum Baxter or Gemma Cryan 02077 696 876 or
info@starvest.co.uk
Grant Thornton UK LLP (Nomad)
Colin Aaronson, Harrison Clarke or Lukas Girzadas 02073 835
100
SI Capital Ltd (Broker)
Nick Emerson or Alan Gunn 01483 413 500
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END
IR PPURPAUPGURQ
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May 26, 2021 04:31 ET (08:31 GMT)
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