Half - Yearly Report

18 March 2014

 

Greatland Gold plc

 

Half-yearly report - six months ended 31 December 2013

 

Chief Executive's statement

Greatland Gold plc ("Greatland" or the "Company"), the mineral exploration and development company focused on gold projects in Tasmania and Western Australia, is pleased to announce its results for the six months to 31 December 2013.

 

Summary

In the first half of the financial year Greatland Gold continued its good progress, with positive exploration work across our assets.  We also conducted two successful capital raises, as we work towards establishing resources across our portfolio of assets.

                                                                                                         

Financials

Greatland Gold reported an operating loss for the six months to 31 December 2013 of £230,964 (six months to December 2012: £199,241).  This translated into a loss per share for the period of 0.04p (six months to December 2012: 0.06p).   

 

Operations

We have made impressive progress across our licenses over the period.  As we look to establish resources across our assets, it is evident that we have many exciting opportunities within our portfolio. 

 

Of specific note, we have taken significant steps forward at our Tasmanian licenses.  In August we announced positive results from exploration work across our entire licence base in Tasmania, and I was particularly pleased with the results of exploration at Firetower and Lisle, in collaboration with our partners Unity Mining and Tamar Gold.  This has reaffirmed that these are very exciting gold projects with established gold mineralisation. 

 

At Firetower, airborne and ground geophysics are underway and high resolution coverage of the entire project is now complete.  At Lisle, we announced significant surface geochemical results, with results peaking at 2.5g/t gold (in soils). These results imply that the area is highly prospective for intrusion related gold systems.

 

Warrentinna continues to provide encouraging results, and is particularly exciting.   With all the necessary permissions received last year, drilling began in December, with further good progress this year.

 

Turning to Western Australia, in October we announced significant progress at our gold projects in the area, with exceptional geochemical results from Ernest Giles; and significant gold and nickel targets identified at Bromus.

 

The Ernest Giles project in central Western Australia covers an area of near 1,000 square kilometres and the project includes over 100km of strike of gold prospective rocks that are covered by recent desert sands and sediments. As a result, the project area is almost completely unexplored.

 

At Bromus the Company has identified several geochemical targets over 10km of strike within which gold mineralisation has been confirmed. Mapping and drill programme planning is currently being carried out.

 

Equity raising

I am pleased to have raised £675,000 of equity through two placing in the first half of the financial year.  These placings allow us to make further progress on our plans to establish resources across our portfolio of assets.

 

Outlook

The price of gold suffered in 2013. However, during the first part of 2014, it has found new support and continues to improve.  Taking a long term perspective, we believe that the outlook for gold is good, with demand likely to be sustained but with global gold production declining.  The Group, through our high quality asset base, disciplined cost control and track record of successfully raising capital, means we are well positioned to benefit from the positive market dynamics as we continue to develop our projects.

 

 

 

Callum N Baxter

CEO

17 March 2014

 

Group statement of comprehensive income

 

	6 months to  31 December  2013		6 months to  31 December  2012		Year ended  30 June 2013
	Unaudited £		Unaudited £		Audited £
Turnover	-		-		-
Exploration expenses	(106,064)		(87,172)		(217,238)
Administrative expenses	(125,793)		(113,403)		(206,785)
Operating loss	(231,857)		(200,575)		(424,023)
Finance revenue	893		1,334		1,784
Loss on ordinary activities before taxation	(230,964)		(199,241)		(422,239)
Tax on loss on ordinary activities	-		-		-
Loss for the financial period	(230,964)		(199,241)		(422,239)
Other comprehensive income
Gain/(loss) on revaluation of available for sale investments	57,150		(4,569)		(15,862)
Exchange differences on translation of foreign operations	(90,887)		(5,139)		(69,260)
Other comprehensive income for the year net of taxation	(33,737)		(9,708)		(85,122)
Total comprehensive income for the year attributable to equity holders of the parent	(264,701)		(208,949)		(507,361)
Loss per share - see note 3 Basic	(0.04) pence		(0.06) pence		(0.12) pence

Group balance sheet

 

	31 December 2013				31 December 2012			30 June 2013
		Unaudited £			Unaudited £			Audited £
Assets
Non-current assets
Tangible assets Intangible assets		20,774 952,736				24,767 1,074,988			22,290 1,017,361
Total non-current assets		973,510				1,099,755			1,039,651
Current assets Cash and cash equivalents Trade and other receivables Available for sale financial assets - see note 4		765,940 22,291 45,984				541,893 33,581 54,821			304,338 43,441 41,041
Total current assets		834,215				630,295			388,820
Total assets		1,807,725				1,730,050			£1,428,471
Liabilities
Current liabilities
Trade and other payables		(33,950)				(29,662)			(26,495)
Total liabilities		(33,950)				(29,662)			(26,495)
Net assets		1,773,775				£1,700,388			£1,401,976
Equity Called up share capital Share premium reserve Retained losses Other reserves		579,232 4,664,539 (3,688,895) 218,899				350,661 4,256,610 (3,234,933) 328,050			350,661 4,256,610 (3,457,931) 252,636
Total equity			£1,773,775			£1,700,388			£1,401,976

 

Group cash flow statement

 

	6 months to  31 December  2013			6 months to  31 December  2012		Year ended  30 June 2013
	Unaudited £			Unaudited £		Audited £
Cash flow from operating activities
Operating loss		(231,857)		(200,575)		(424,023)
Decrease in receivables		21,150		34,756		24,896
Increase/(Decrease) in payables		7,456		(13,961)		(17,127)
Depreciation		-		-		7,850
Net cash outflow from operations		(203,251)		(179,780)		(408,404)
Cash flows from investing activities
Interest received Payments to acquire intangible assets Receipts from sale of tangible assets Payments to acquire tangible assets		893 -   - -		1,334 -   - -		1,784 -   - -
Net cash flows used in investing activities		893		1,334		1,784
Cash inflows from financing activities
Proceeds from issue of shares Transaction costs of issue of shares		675,000 (38,500)		- -		- -
Net cash flows from financing activities		636,500		-		-
Net (decrease)/increase in cash and cash equivalents Cash and cash equivalents at the beginning of period Exchange gain on cash and cash equivalents		434,142   304,338   27,460		(178,446)   717,117   3,222		(406,620)   717,117   (6,159)
Cash and cash equivalents at end of period		765,940		541,893		304,338

 

 

Statement of group changes in equity

 

	Called up share capital	Share premium account	Share based payment   reserve	Retained earnings	Other reserves	Total
	£	£	£	£	£	£

 

As at 30 June 2012

350,661

4,256,610

-

(3,035,692)

337,758

1,909,337

 

Loss for the period	-	-	-	(422,239)	-	(422,239)
Loss on revaluation of available for sale investments	-	-	-	-	(15,862)	(15,862)
Currency translation differences	-	-	-	-	(69,260)	(69,260)
Total comprehensive income	-	-	-	(422,239)	(85,122)	(507,361)
Share options expired	-	-	-	-	-	-
Share capital issued	-	-	-	-	-	-
Cost of share issue	-	-	-	-	-	-
As at 30 June 2013	350,661	4,256,610	-	(3,457,931)	252,636	1,401,976

 

Loss for the period	-	-	-	(230,964)	-	(230,964)
Gain on revaluation of available for sale investments	-	-	-	-	57,150	57,150
Currency translation differences	-	-	-	-	(90,887)	(90,887)
Total comprehensive income	-	-	-	(230,964)	(33,737)	(264,701)
Share capital issued	228,571	446,429	-	-	-	675,000
Cost of share issue	-	(38,500)	-	-	-	(38,500)
As at 31 December 2013	579,232	4,664,539	-	(3,688,895)	218,899	1,773,775

Statements of changes in other reserves

 

	Merger reserve	Foreign currency translation reserve	Available for resale financial assets reserve	Total other reserves
Group	£	£	£	£

 

As at 30 June 2012	225,000	193,415	(80,657)	337,758
Net unrealised losses on financial assets available for resale	-	-	(15,862)	(15,862)
Unrealised foreign currency gains	-	(33,631)	(35,629)	(69,260)
As at 30 June 2013	225,000	159,784	(132,148)	252,636

 

Net unrealised gains on financial assets available for resale	-	-	57,150	57,150
Unrealised foreign currency gains	-	(60,463)	(30,424)	(90,887)
As at 31 December 2013	225,000	99,321	(105,422)	218,899

 

 

Half-yearly report notes

 

1. Half-yearly report

This half-yearly report was approved by the Directors on 17 March 2014.

The information relating to the six month periods to 31 December 2012 and 31 December 2013 are unaudited.

The information relating to the year to 30 June 2013 is extracted from the audited financial statements of the Company which have been filed at Companies House and on which the auditors issued an unqualified audit report.

2. Basis of accounting

The report has been prepared using accounting policies and practices that are consistent with those adopted in the statutory financial statements for the year ended 30 June 2013, although the information does not constitute statutory financial statements within the meaning of the Companies Act 2006. 

These half-yearly financial statements consolidate the financial statements of the Company and its subsidiary and are prepared in accordance with International Financial Reporting Standards as adopted for use in the European Union.

The Company and Group will report again for the full year to 30 June 2014.

3. Loss per share

	6 months to  31 December  2013		6 months to  31 December  2012		Year ended  30 June 2013
	Unaudited £		Unaudited £		Audited £
These have been calculated on a loss of:	(230,964)		(199,241)		(422,239)
The weighted average number of shares used was:	579,232,539		350,661,000		350,661,000
Basic loss per share:	(0.04) pence		(0.06) pence		(0.12) pence

 

4. Available for sale financial assets

The Group's investments were valued at £45,984 at 31 December 2013.

 

Copies of this half-yearly report are available free of charge by application in writing to the Company Secretary at the Company's registered office, 55 Gower Street, London WC1E 6HQ, or by email to [email protected]. The report will also be made available on the Company's website, www.greatlandgold.com.

 

Enquiries:

 

Greatland Gold PLC

Callum Baxter

Tel +44 (0)20 7747 9980

Email:  [email protected]

www.greatlandgold.com

 

Grant Thornton UK LLP (Nomad)

Colin Aaronson / David Hignell

Tel +44 (0)20 7383 5100

 

SI Capital Limited (Broker)

Nick Emerson / Andy Thacker

Tel  +44 (0)14 8341 3500

 

RLM Finsbury (Public Relations)

Gordon Simpson / Chris Ryall

Tel +44 (0)20 7251 3801

 

 

Notes to Editors

Greatland Gold is a mineral exploration and development company based in Australia. The principal activity of Greatland Gold plc is to explore for and develop natural resources, with a focus on gold. The Company currently has six mineral projects located in Australia, including the Ernest Giles, Firetower, Warrentinna, Lisle, Bromus and Lackman Rock projects. The pipeline of projects targets highly prospective areas for multi-million ounce orebodies. The Company was established in London in 2005 and admitted to AIM in July 2006.

 

The board seeks to increase shareholder value by the systematic evaluation of its existing resource assets, as well as the acquisition of suitable exploration and development projects and producing assets.

 

Greatland has a UK and Australian based board of directors with a head office in London and an exploration office in Australia.

 

End