News - African Eagle Resources PLC: Unaudited Interim Results

29 September 2014

African Eagle Resources plc
("African Eagle" or the "Company")

African Eagle (AIM: AFE; AltX: AEA) today announces its unaudited interim results for the six months ended 30 June 2014, which will also be available shortly on the Company's website: www.africaneagle.co.uk.

CHAIRMAN'S STATEMENT

Dear Shareholder,


In the short time since I last wrote to you, on 17 June 2014, your board of directors ("Board") has continued to work extremely hard to identify, assess and seek to negotiate for potential opportunities that could act as a catalyst for the rebuilding of your Company.  I am pleased to report that, although at too early a stage to report any details, positive progress is being made in this area and it is hoped that, but cannot be guaranteed, your Company will be in a position to provide shareholders with further information in due course.

The results for the six months ending 30 June 2014 are the first results that clearly reflect the commitment to cost-cutting and mitigation of liabilities that has taken place in your Company.  This process took time and was not a straightforward task but your Company is now demonstrably well-placed to act as the vehicle for a transaction or transactions that, we hope, could enhance shareholder value.

The comparative figures for the six months ending 30 June 2013 are shown for the Company only, having in the last set of interim figures been presented for the Group of companies that then existed and therefore the comparative figures are not the same as those presented in the interim results for the six months ending 30 June 2013. The comparative figures were prepared on a break up basis which was the appropriate basis at that time and the Company's results for that period have not been restated to a going concern basis.

It should be noted that the fair values of the two principal assets of your Company, the approximately 9% interest in Elephant Copper Limited and the 10% free carried interest in the Tanzanian assets (the other 90% of which was sold in 2013), are denominated for accounting purposes in US dollars.  Given that the Company reports its results in sterling, and the strength of sterling against the US dollar as at 30 June 2014, a reasonably significant foreign exchange loss is reported in the income statement.

Following the period end it is unfortunate that, despite considerable efforts, your Board was unable to prevent the Company's shares from being suspended from trading on both AIM and Altx on 11 August 2014 as a result of not implementing the investing policy within a year of becoming an investing company, a requirement under the AIM Rules for Companies.

However, given the positive progress being made with the opportunities that are being explored and with the continued financial support of myself and CEO Nick Clarke, it is sincerely hoped that the suspension will be lifted in due course such that trading can re-start with a strong platform for growth.

I look forward to being able to report further to you in more detail at the appropriate time.

Kola Karim
Chairman

For further information please visit www.africaneagle.co.uk or contact the following:

Enquiries:

African Eagle Resources plc
Robert McLearon, Finance Director
Tel: +44 (0) 20 7002 5361
Beaumont Cornish Limited (Nominated Adviser) Tel: +44 (0) 207 628 3396
Roland Cornish
Emily Staples
Pareto Securities Limited (Broker)
Guy Wilkes
Tel: +44 (0) 20 7786 4370  

African Eagle Resources Plc

Condensed Interim Statement of Comprehensive Income

For the six months ended 30 June 2014

6 months to 6 months to Year to
30 June 30 June 31 December
2014 2013 2013
Note Unaudited Unaudited Audited
Employee benefits expense (75,011) (248,111) (495,529)
Reversal of impairment of available for sale investment - - 242,601
Impairment of assets - - (46,789)
Other expenses (114,398) (772,656) (925,871)
Depreciation expense - - (488)
Profit on disposal of subsidiaries - - 64,937
Loan impairment - (2,043,692) (2,191,106)
Other income - 15,605 -
Operating loss (189,409) (3,048,854) (3,352,245)
Finance income:
Bank interest receivable 602 19,764 20,175
Foreign exchange (loss)/gain (27,552) 67,162 64,578
Loss before tax (216,359) (2,961,928) (3,267,492)
Income tax expense - - -
Loss attributable to equity owners for the period (216,359) (2,961,928) (3,267,492)
Other comprehensive income:
Available for sale investments fair value adjustment - - 655,022
Other comprehensive income for the period - - 655,022
Total comprehensive loss attributable to equity owners for the period (216,359) (2,961,928) (2,612,470)
Loss per share:
Basic/diluted loss per share from total and continuing operations 5 (0.03p) (0.43p) (0.44p)
Headline/diluted loss per share from total and continuing operations 5 (0.03p) (0.13p) (0.17p)

The accompanying notes form an integral part of these condensed interim financial statements.


African Eagle Resources Plc

Condensed Interim Statement of Financial Position

As at 30 June 2014

30 June 30 June 31 December
2014 2013 2013
Unaudited Unaudited Audited
Note
Assets
Available for sale investments 4 869,156 18,667 897,623
Cash and cash equivalents 24,442 569,698 176,997
Other receivables 36,368 128,745 75,557
Total assets 929,966 717,110 1,150,177
LIABILITIES
Current liabilities
Other payables (73,238) (407,022) (87,857)
Total liabilities (73,238) (407,022) (87,857)
Net assets 856,728 310,088 1,062,320
EQUITY
Equity attributable to owners of the parent:
Share capital 7,117,288 6,940,145 7,117,288
Share premium account 36,682,600 36,559,743 36,682,600
Available for sale revaluation reserve 655,022 - 655,022
Retained losses (43,598,182) (43,189,800) (43,392,590)
Total equity 856,728 310,088 1,062,320

The accompanying notes form an integral part of these condensed interim financial statements.


African Eagle Resources Plc 
Condensed Interim Statement of Cash Flows
For the six months ended 30 June 2014

6 months to 6 months to Year to
30 June 30 June 31 December
2014 2013 2013
Unaudited Unaudited Audited
Operating activities
Loss before taxation (216,359) (2,961,928) (3,267,492)
Adjustments for:
Exchange loss on available for sale investment 28,467 - -
Impairment of assets - 49,333 46,789
Reversal of impairment of available for sale investment - - (242,601)
Proceeds from the sale of assets - (15,605) -
Depreciation - - 488
Profit on disposal of subsidiaries - - (64,937)
Loan impairment - 2,043,692 2,191,106
Profit on disposal of assets - - (41,876)
Share based payments 10,767 84,371 187,145
Interest received (602) (19,764) (20,175)
Decrease/(increase) in other receivables 39,189 (51,727) 1,462
Decrease in other payables (14,619) (140,867) (460,032)
Cash flows from operating activities (153,157) (1,012,495) (1,670,123))
Investing activities
Payments to acquire property, plant and equipment - - (1,955)
Funds advanced for subsidiaries - (2,043,692) (2,191,106)
Proceeds from sale of assets - 15,605 43,342
Proceeds from the disposal of subsidiaries - - 64,937
Proceeds from disposal of available for sale investment - - 21,211
Interest received 602 19,764 20,175
Cash flows used in investing activities 602 (2,008,323) (2,043,396)
Financing activities
Proceeds from issue of share capital (net of issue costs) - - 300,000
Cash flows from financing activities - - 300,000
Net decrease in cash and cash equivalents (152,555) (3,020,818) (3,413,519)
Cash and cash equivalents at beginning of year 176,997 3,590,516 3,590,516
Cash and cash equivalents at end of period 24,442 569,698 176,997

The accompanying notes form an integral part of these condensed interim financial statements.


African Eagle Resources Plc

Condensed Interim Statement of Changes in Equity

For the six months ended 30 June 2014

Share
capital
Share
premium
account
Available for sale
revaluation
reserve
Retained
losses
Total
attributable to
owners
Balance at 1 January 2013 6,940,145 36,559,743 - (40,312,243) 3,187,645
Loss for period - - - (2,961,928) (2,961,928)
Total comprehensive loss  for the period - - - (2,961,928) (2,961,928)
Transactions with equity owners for the first half of 2013:
Share based payments - - - 84,371 84,371
Total transactions with equity owners - - - 84,371 84,371
Balance at 30 June 2013 6,940,145 36,559,743 - (43,189,800) 310,088
Loss for period - - - (305,564) (305,564)
Available for sale investments - fair value adjustment - - 655,022 - 655,022
Total comprehensive loss  for the period - - 655,022 (305,564) 349,458
Transactions with equity owners for the second half of 2013:
Share based payments - - - 102,774 102,774
Issue of share capital 177,143 132,857 - - 310,000
Share issue costs - (10,000) - - (10,000)
Total transactions with equity owners 177,143 122,857 - 102,774 402,774
Balance at 31 December 2013 7,117,288 36,682,600 655,022 (43,392,590) 1,062,320
Loss for period - - - (216,359) (216,359)
Total comprehensive loss  for the period - - - (216,359) (216,359)
Transactions with equity owners for the first half of 2014:
Share based payments - - - 10,767 10,767
Total transactions with equity owners - - - 10,767 10,767
Balance at 30 June 2014 7,117,288 36,682,600 655,022 (43,598,182) 856,728

The accompanying notes form an integral part of these condensed interim financial statements.


African Eagle Resources Plc 
Notes to the Condensed Interim Financial Statements
For the six months ended 30 June 2014

1      Nature of Operations and General Information

African Eagle Resources plc ("African Eagle" or the "Company") whose registered address is 64 New Cavendish Street, London, W1G 8TB, is a public limited company incorporated and domiciled in England and is quoted on the AIM market of the London Stock Exchange and on the Alternative Exchange of the Johannesburg Stock Exchange Limited ("AltX"). Following the sale of substantially all of its subsidiaries, assets and liabilities on 8 August 2013 the Company is classed as an Investing Company as defined under the AIM Rules for Companies ("AIM Rules").

The Company has prepared its condensed interim financial statements ("Financial Statements") on a going concern basis which assumes that the Company will be able to realise assets and discharge liabilities in the normal course of business.  As announced on 17 June 2014 the Company entered into a loan facility agreement (the "Facility") with CEO Nick Clarke and Chairman of the Company, Kola Karim, for a total of up to 365,000 to provide working capital for the Company.

At 30 June 2014 the Company had cash and cash equivalents of 24,442 and had not drawn on the Facility.  The cash position as at the date of these Financial Statements was approximately 16,000 having drawn down 65,000 from the Facility. The Company, as at the date of approval of these Financial Statements therefore has sufficient funding to meet the Company's working capital requirements for the next 12 months for going concern purposes. The Company will, however, need to raise additional funds to finance any significant transaction and to repay any drawn down amount of the Facility, in the event that funds cannot be raised by the realisation of assets.
  
The Directors are confident that they will be able to secure additional funding for any such transaction, but, in common with other companies at this stage of development, there can be no certainty that the funding will be available.

2    Statement of Compliance and basis of preparation

African Eagle's Financial Statements are presented in pounds sterling (), which is also the functional currency of the Company. The Financial Statements are for the six months ended 30 June 2014. They do not include all the information required for full annual financial statements and should be read in conjunction with the audited financial statements of the Company for the year ended 31 December 2013, which were prepared under International Financial Reporting Standards ("IFRS") as adopted by the European Union ("EU").

The comparative amounts in the Financial Statements include extracts from the Company's financial statements for the year ended 31 December 2013. These extracts do not constitute statutory accounts within the meaning of Section 435 of the Companies Act 2006. 

The comparative amounts for the six month period ending 30 June 2013 comprise the Company only and were prepared on a break up basis.  The results for this period as reported in September 2013 comprised the then existing Group of companies and were also prepared on a break up basis and therefore the comparative figures are not the same as those presented in the interim results for the six months ending 30 June 2013.  Figures have not been restated to a going concern basis.

3    Loss Per Share

(a) Basic loss per share

The calculation of basic loss per share is based on the loss for the period divided by the weighted average number of shares in issue during the period. In calculating the diluted loss per share potential ordinary shares such as share options and warrants have not been included as they would have the effect of decreasing the loss per share. Decreasing the loss per share would be anti-dilutive.

6 months to
30 June
6 months to
30 June
Year to
31 December
2014 2013 2013
Unaudited Unaudited Audited
Loss for the period (216,359) (2,961,928) (3,267,492)
Weighted average number of shares in issue 744,975,036 694,014,407 744,975,036
Basic & diluted loss per share (0.03p) (0.43p) (0.44p)

(b) Headline loss per share

Headline loss per share has been calculated in accordance with the South African Institute of Chartered Accountants Circular 3/2009 - Headline Earnings. Circular 3/2009 is effective for interim and/or annual financial periods ending on or after 31 August 2009.

The calculation of headline loss per share is based on the headline loss for the period divided by the weighted average number of shares in issue during the period. No diluted headline loss per share has been calculated as it would be anti-dilutive by reducing the headline loss per share.

6 months to
30 June
6 months to
30 June
Year to
31 December
2014 2013 2013
Unaudited Unaudited Audited
Loss for the period (216,359) (2,961,928) (3,267,492)
Adjusted for:
  Plus loss on sale of tangible assets - 213 -
  Reversal of impairment of available for sale investment - - (242,601)
 Loan impairment - 2,043,692 2,191,106
  Impairment of assets - 49,333 46,789
Headline loss (216,359) (868,690) (1,272,198)
Weighted average number of shares in issue 744,975,036 694,014,407 744,975,036
Undiluted headline loss per share (0.03p) (0.13p) (0.17p)

4    Available for sale investments

6 months to 6 months to Year to
30 June 30 June 31 December
2014 2013 2013
Unaudited Unaudited Audited
Investment in Blackdown Minerals Limited:
At 1 January/8 August 655,022 - -
Revaluation during the period - - 655,022
Foreign exchange revaluation loss (20,773) - -
Carrying amount at end of period 634,249 - 655,022
Investment in Elephant Copper Limited:
At 1 January 242,601 - -
Reversal of impairment - - 242,601
Foreign exchange revaluation loss (7,694) - -
Carrying amount at end of period 234,907 - 242,601
  • Investment in Kibo Mining Plc
At 1 January - 68,000 68,000
Impairment - (49,333) (46,789)
Proceeds from sale - - (21,211)
Carrying amount at end of period - 18,667 -

5    Events after the balance sheet date

On 11 August 2014 the Company's shares were suspended from trading on AIM and Altx as a result of the Company not implementing its investing policy (as required by the AIM Rules) within twelve months of becoming an Investing Company (as defined under the AIM Rules).

Correspondence Address & Registered Office: 64 New Cavendish Street, London, W1G 8TB, UK
Phone: +44 20 7002 5361 / E-mail: info@africaneagle.co.uk

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