RNS Number : 7058T Botswana Diamonds PLC 29 March 2021
29th March 2021
Botswana Diamonds PLC ("Botswana Diamonds" or the "the Company")
Unaudited Interim Statement and Financial Results for the Six Months Ended 31 December 2020
Botswana Diamonds (AIM: BOD) is pleased to announce its unaudited interim results for the six months ended31 December 2020 ("Period") during which time the Company has made significant progress on its diamond development projects in both Botswana and South Africa.
Highlights
· A new Diamond bearing kimberlite discovered at Thorny River. A three-dimensional model of the newly discovered River Kimberlite pipe on the Thorny River property in South Africa was published in December following a successful reverse circulation drilling campaign. A sample of these drill chips produced eleven diamonds and abundant kimberlitic indicators including G10 and eclogitic garnets.
· Following the Period end, the company entered into a cooperation agreement to fund exploration of its prospecting licence assets in Botswana with Diamexstrat Botswana Pty Ltd ("DESB"), which in turn has an alliance agreement with Burgundy Diamond Mines Limited ("Burgundy" ASX: BDM).
· Progress has been made on the Maibwe joint venture with core being further sampled for fresh microdiamond work.
Botswana
· Following the Period end, the company entered into a cooperation agreement to fund exploration of its prospecting licence assets in Botswana with Diamexstrat Botswana Pty Ltd ("DESB"), which in turn has an alliance agreement with Burgundy Diamond Mines Limited ("Burgundy" ASX: BDM).
· BOD's prospecting assets comprise the recently acquired Sekaka Diamonds Exploration Pty Ltd ('Sekaka') database and Prospecting Licenses, as well as the Prospecting Licences held by BOD's subsidiary, Sunland Minerals Pty Ltd ("Sunland Minerals"). Highlights of this agreement include:
o DESB (and its partner, Burgundy) can earn up to a 70% interest in BOD's Botswana Sunland Minerals and Sekaka's
Prospecting Licences.
o BOD can earn a 15% interest in Prospecting Licences held by DESB (and partners) on the firstUS$1.5m spent on exploration by DESB where BOD's database assists in the discovery of a primary kimberlite.
o On 3rd party Prospecting Licences where targets are identified in BOD's database, a joint earn-in will be negotiated at the time.
o For new Botswana Prospecting Licences, DESB (and its partner, Burgundy) can earn up to 70%.
o The KX36 diamond discovery is not part of the agreement and remains 100% BOD owned.
· Progress has been made on the Maibwe joint venture with core being further sampled for fresh microdiamond work being undertaken in Canada. The results of this microdiamond work will enable the liquidator to make a decision on the value of the joint venture so it can progress.
South Africa
· A three-dimensional model of the newly discovered kimberlite pipe on Thorny River, known as the River Kimberlite was published in December following a high resolution ground gravity survey and a reverse circulation drilling campaign. The best fit model showed an East - West trending body gently dipping to the east with a surface expression of 80 x 40m.
· Samples from this drilling campaign were taken at one metre intervals and twenty of these totalling about 500kg were selected and submitted to an independent processing facility for assessment through screening, dense media separation and hand sorting.
· Following the Period end, the Company announced that 11 diamonds, 172 G10 pyrope garnets, 623 G9 pyrope garnets, 555 eclogitic garnets, 438 chromites and 268 chromium diopsides (clinopyroxene) were recovered at sizes between - 1.0+0.3mm. Recoveries of a specific mineral species were capped at 20 grains and thus this picture is a snapshot of the overall sample indicator content.
· Importantly, all the samples contained abundant kimberlitic indicators. The diamonds are all notably of good colour and clarity and are of commercial quality and in high demand by the market.
· The next step is a detailed core drilling programme which is planned for the dry season.
Corporate
In January 2021 the company arranged a placing with existing and new investors to raise £363,000 via the issue of 60,500,000 new ordinary shares at a placing price of 0.6p per placing share.Each placing share had one warrant attached with the right to subscribe for one new ordinary share at 0.6p per new ordinary share for a period of two years from 22 January 2021.
John Teeling
Chairman
29th March 2021
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This release has been approved by James Campbell, Managing Director of Botswana Diamonds plc, a qualified geologist (Pr.Sci.Nat), a Fellow of the Southern African Institute of Mining and Metallurgy, a Fellow of the Institute of Materials, Metals and Mining (UK) and with over 34-years' experience in the diamond sector.
This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014. The person who arranged for the release of this announcement on behalf of the Company was James Campbell, Director
A copy of this announcement is available on the Company's website, atwww.botswanadiamonds.co.uk
ENDS
Enquiries: | |
Botswana Diamonds PLC | |
John Teeling, Chairman | +353 1 833 2833 |
James Campbell, Managing Director | +27 83 457 3724 |
Jim Finn, Director | +353 1 833 2833 |
Beaumont Cornish - Nominated Adviser | |
Michael Cornish | +44 (0) 020 7628 3396 |
Roland Cornish | |
Beaumont Cornish Limited - Broker | +44 (0) 207 628 3396 |
Roland Cornish | |
Felicity Geidt | |
First Equity Limited - Joint Broker | +44 (0) 207 374 2212 |
Jason Robertson | |
Blytheweigh - PR | +44 (0) 207 138 3206 |
Megan Ray | +44 (0) 207 138 3553 |
Rachael Brooks | +44 (0) 207 138 3206 |
Said Izagaren | +44 (0) 207 138 3206 |
Naomi Holmes | |
+44 (0) 207 138 3206 | |
Teneo | |
Luke Hogg | +353 (0) 1 661 4055 |
Alan Tyrrell | +353 (0) 1 661 4055 |
Ross Murphy | +353 (0) 1 661 4055 |
www.botswanadiamonds.co.uk |
Botswana Diamonds plc Financial Information (Unaudited)
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Six Months | Year | ||
Ended | Ended | Ended | |
31 Dec 20 | 31 Dec 19 | 30 Jun 20 | |
unaudited | unaudited | audited | |
£'000 | £'000 | £'000 | |
Administrative expenses | ( 195 ) | ( 194 ) | ( 357 ) |
Impairment of exploration and evaluation assets | - | - | ( 34 ) |
OPERATING | |||
LOSS | ( 195 ) | ( 194 ) | ( 391 ) |
LOSS BEFORE | |||
TAXATION | ( 195 ) | ( 194 ) | ( 391 ) |
Income tax | |||
expense | - | - | - |
LOSS AFTER TAXATION | ( 195 ) | ( 194 ) | ( 391 ) |
Exchange difference on translation of foreign operations | 48 | - | ( 104 ) |
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD | ( 147 ) | ( 194 ) | ( 495 ) |
LOSS PER SHARE - basic and diluted | (0.03p) | (0.03p) | (0.06p) |
Page 2 of 7 |
Six Months
CONDENSED CONSOLIDATED BALANCE SHEET
ASSETS: NON-CURRENT ASSETS Intangible assets
CURRENT ASSETS
Trade and other receivablesCash and cash equivalents
TOTAL ASSETSLIABILITIES: CURRENT LIABILITIES
Trade and other payables TOTAL
LIABILITIES
NET ASSETSEQUITY
Share capital - deferred shares
Share capital - ordinary shares
Share premium
Share based payments reserve
Retained Deficit Translation Reserve Other reserves TOTAL EQUITY
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
31 Dec 20 unaudited
31 Dec 19 unaudited
30 Jun 20 audited
£'000
£'000 £'000
8,287
8,134 8,087
8,287
8,134 8,087
5 39 44
21 25
13 18
34 43
8,331
8,168 8,130
( 486 )
( 425 )
( 433 )
( 486 )
( 425 )
( 433 )
7,845
7,743 7,697
1,796 1,803 10,734
1,796 1,796 1,569 1,678 10,418 10,564
111
111 111
( 5,427 )
( 5,035 )
( 5,232 )
( 189 ) ( 983 )
( 133 ) ( 983 )
( 237 ) ( 983 )
7,845
7,743
7,697
Share based
Share Capital £'000
Share Premium £'000
Payment Reserves £'000
Retained
Deficit £'000
Translation
Reserve £'000
Other ReserveTotal Equity
£'000 £'000
At 30 June 2019
Issue of shares Share issue expenses Total comprehensive loss
3,237
10,300
111
( 4,841 )
( 133 )
( 983 ) 7,691
128
128 - - - - 256
-
( 10 )
-
-
-
-( 10 )
( 194 )
-
-
( 194 )
At 31 December 2019
3,365
10,418
111
( 5,035 )
( 133 )
( 983 )
7,743
Issue of shares Share issue expenses Total comprehensive loss
109
153
- -
- -
- -
- -262
-
( 7 )
( 7 )
- 111
( 197 )
( 104 )
-
( 301 )
At 30 June 2020
3,474
10,564
( 5,232 )
( 237 )
( 983 )
7,697
Issue of shares Share issue expenses Total comprehensive loss
125
175
- -
- -
- -
- -
300
-
( 5 )
(5 )
-
-
( 195 )
48
-
( 147 )
At 31 December 2020
3,599
10,734
111
( 5,427 )
( 189 )
( 983 )
7,845
Page 3 of 7
CONDENSED CONSOLIDATED CASH FLOW
Six MonthsSix Months
Year
Ended 31 Dec 20 unaudited £'000
Ended 31 Dec 19 unaudited £'000
Ended 30 Jun 20 audited £'000
CASH FLOW FROM OPERATING ACTIVITIES
Loss for the period
( 195 )
( 194 )
( 391 )Impairment of exploration and evaluation assets Exchange movements
-
- 34
1
( 4 ) 5
( 194 )
( 198 )
( 352 )Movements in Working Capital
73
46
35
NET CASH USED IN OPERATING ACTIVITIES
( 121 )
( 152 )
( 317 )
CASH FLOWS FROM INVESTING ACTIVITIES
Exploration costs capitalised
( 152)
( 99 )
( 175 )
NET CASH USED IN INVESTING ACTIVITIES
( 152 )
( 99 )
( 175 )
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from share issue Share issue costs
300
256
518
(5 )
( 10 )
( 17 )
NET CASH GENERATED IN INVESTING ACTIVITIES
295
246 501
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS
22
( 5 ) 9
Cash and cash equivalents at beginning of the period
18
14 14
Effect of foreign exchange rate changes
( 1 )
CASH AND CASH EQUIVALENT AT THE END OF THE PERIOD
39
4 13
( 5 )
18
Notes: 1.
INFORMATION
The financial information for the six months ended31 December 2020 and the comparative amounts for the six months ended31 December 2019 are unaudited. The financial information above does not constitute full statutory accounts within the meaning of section 434 of the Companies Act 2006.
The Interim Financial Report has been prepared in accordance with IAS 34 Interim Financial Reporting as adopted by thEeuropean 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 2020 Annual Report, which is available atwww.botswanadiamonds.co.uk
The interim financial statements have not been audited or reviewed by the auditors of the Group pursuant to the Auditing Practices board guidance on Review of Interim Financial Information.
2.
DIVIDEND
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 period available to ordinary shareholders by the weighted average number of ordinary shares in issue and ranking for dividend during the period.
Diluted loss per share is computed by dividing the loss after taxation for the period by the weighted average number of ordinary shares in issue, adjusted for the effect of all dilutive potential ordinary shares that were outstanding during the period.
The following table sets forth the computation for basic and diluted earnings per share (EPS):
Six Months | Six Months | ||
Ended | Ended | Year Ended | |
31 Dec 20 | 31 Dec 19 | 30 Jun 20 | |
£'000 | £'000 | £'000 | |
Numerator | |||
For basic and diluted EPS retained | (195) | (194) | (391) |
loss | |||
No. | No. | No. | |
Denominator | |||
621,741,536 | 642,643,820 |
Weighted average number of ordinary 702,728,751
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Botswana Diamonds plc published this content on 29 March 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 March 2021 06:07:04 UTC.