Botswana Diamonds PLC Unaudited Interim Statement and Financial Results
Botswana Diamonds PLC Unaudited Interim Statement and Financial Results
29/03/2021 7:00am
UK Regulatory (RNS & others)
Botswana Diamonds (LSE:BOD)
Intraday Stock Chart
Monday 29 March 2021
TIDMBOD
RNS Number : 7058T
Botswana Diamonds PLC
29 March 2021
29(th) 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 ended 31 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 first US$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 GBP363,000 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
29(th) March 2021
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, at www.botswanadiamonds.co.uk
S
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 Roland Cornish +44 (0) 020 7628 3396 Beaumont Cornish Limited - Broker Roland Cornish Felicity Geidt +44 (0) 207 628 3396 First Equity Limited - Joint Broker Jason Robertson +44 (0) 207 374 2212 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 Six Months Year
Ended Ended Ended
31 Dec 31 Dec 30 Jun
20 19 20
unaudited unaudited audited
GBP'000 GBP'000 GBP'000
( 195 ( 194 ( 357
Administrative expenses ) ) )
Impairment of exploration and evaluation ( 34
assets - - )
-------------------- -------------------- ----------------
( 195 ( 194 ( 391
OPERATING LOSS ) ) )
( 195 ( 194 ( 391
LOSS BEFORE TAXATION ) ) )
Income tax
expense - - -
-------------------- -------------------- ----------------
( 195 ( 194 ( 391
LOSS AFTER TAXATION ) ) )
Exchange difference on translation ( 104
of foreign operations 48 - )
TOTAL COMPREHENSIVE INCOME FOR THE ( 147 ( 194 ( 495
PERIOD ) ) )
==================== ==================== ================
LOSS PER SHARE - basic and
diluted (0.03p) (0.03p) (0.06p)
==================== ==================== ================
CONDENSED CONSOLIDATED BALANCE
SHEET
31 Dec 31 Dec 30 Jun
20 19 20
unaudited unaudited audited
ASSETS: GBP'000 GBP'000 GBP'000
NON-CURRENT ASSETS
Intangible
assets 8,287 8,134 8,087
-------------------- -------------------- ----------------
8,287 8,134 8,087
-------------------- -------------------- ----------------
CURRENT ASSETS
Trade and other receivables 5 21 25
Cash and cash equivalents 39 13 18
-------------------- -------------------- ----------------
44 34 43
TOTAL ASSETS 8,331 8,168 8,130
-------------------- -------------------- ----------------
LIABILITIES:
CURRENT
LIABILITIES
( 486 ( 425 ( 433
Trade and other payables ) ) )
-------------------- -------------------- ----------------
TOTAL ( 486 ( 425 ( 433
LIABILITIES ) ) )
NET ASSETS 7,845 7,743 7,697
==================== ==================== ================
EQUITY
Share capital - deferred
shares 1,796 1,796 1,796
Share capital - ordinary
shares 1,803 1,569 1,678
Share premium 10,734 10,418 10,564
Share based payments
reserve 111 111 111
Retained ( 5,427 ( 5,035 ( 5,232
Deficit ) ) )
Translation ( 189 ( 133 ( 237
Reserve ) ) )
( 983 ( 983 ( 983
Other reserves ) ) )
-------------------- -------------------- ----------------
TOTAL EQUITY 7,845 7,743 7,697
==================== ==================== ================
CONDENSED CONSOLIDATED STATEMENT OF CHANGES
IN EQUITY
Share
based
Share Share Payment Retained Translation Other Total
Capital Premium Reserves Deficit Reserve Reserve Equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 30 June ( 4,841 ( 133 ( 983
2019 3,237 10,300 111 ) ) ) 7,691
Issue of
shares 128 128 - - - - 256
Share issue ( 10 ( 10
expenses - ) - - - - )
Total
comprehensive ( 194 ( 194
loss ) - - )
------------------ ------------- -------------------- ---------------- -------------------- -------------------- ----------------
At 31 December ( 5,035 ( 133 ( 983
2019 3,365 10,418 111 ) ) ) 7,743
Issue of
shares 109 153 - - - - 262
Share issue ( 7
expenses - ( 7 ) - - - - )
Total
comprehensive ( 197 ( 104 ( 301
loss - ) ) - )
------------------ ------------- -------------------- ---------------- -------------------- -------------------- ----------------
At 30 June ( 5,232 ( 237 ( 983
2020 3,474 10,564 111 ) ) ) 7,697
Issue of
shares 125 175 - - - - 300
Share issue
expenses - ( 5 ) - - - - (5 )
Total
comprehensive ( 195 ( 147
loss - - ) 48 - )
--------------------
At 31 December ( 5,427 ( 189 ( 983
2020 3,599 10,734 111 ) ) ) 7,845
================== ============= ==================== ================ ==================== ==================== ================
CONDENSED CONSOLIDATED CASH
FLOW Six Months Six Months Year
Ended Ended Ended
31 Dec 31 Dec 30 Jun
20 19 20
unaudited unaudited audited
GBP'000 GBP'000 GBP'000
CASH FLOW FROM OPERATING ACTIVITIES
Loss for the ( 195 ( 194 ( 391
period ) ) )
Impairment of exploration and evaluation
assets - - 34
Exchange
movements 1 ( 4 ) 5
-------------------- -------------------- ----------------
( 194 ( 198 ( 352
) ) )
Movements in Working
Capital 73 46 35
-------------------- -------------------- ----------------
NET CASH USED IN OPERATING ( 121 ( 152 ( 317
ACTIVITIES ) ) )
-------------------- -------------------- ----------------
CASH FLOWS FROM INVESTING
ACTIVITIES
Exploration costs ( 99 ( 175
capitalised ( 152) ) )
-------------------- -------------------- ----------------
NET CASH USED IN INVESTING ( 152 ( 99 ( 175
ACTIVITIES ) ) )
-------------------- -------------------- ----------------
CASH FLOWS FROM FINANCING
ACTIVITIES
Proceeds from share
issue 300 256 518
Share issue ( 10 ( 17
costs (5 ) ) )
-------------------- -------------------- ----------------
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 ( 5
rate changes ( 1 ) 4 )
CASH AND CASH EQUIVALENT AT THE
OF THE PERIOD 39 13 18
==================== ==================== ================
Notes:
1. INFORMATION
The financial information for the six months ended 31 December 2020 and the comparative amounts for the six months ended 31 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 the European 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 at www.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. DIVID
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 31 Dec 30 Jun
20 19 20
GBP'000 GBP'000 GBP'000
Numerator
For basic and diluted EPS retained
loss (195) (194) (391)
============== ============== ==============
No. No. No.
Denominator
Weighted average number of ordinary
shares 702,728,751 621,741,536 642,643,820
============== ============== ==============
Loss per share - Basic and Diluted (0.03p) (0.03p) (0.06p)
============== ============== ==============
The following potential ordinary shares are anti-dilutive and
are therefore excluded from the weighted average number of shares
for the purposes of the diluted earnings per share:
No. No. No.
Share options 11,410,000 11,410,000 11,410,000
============== ============== ==============
4. INTANGIBLE ASSETS
31 Dec 31 Dec 30 June
20 19
GBP'000 GBP'000 GBP'000
Exploration and evaluation assets:
Cost:
Opening balance 9,385 9,299 9,299
Additions 152 99 190
Exchange variance 48 - (104)
9,585 9,398 9,385
======== ======== ========
Impairment:
Opening balance 1,298 1,264 1,264
Provision for impairment - - 34
-------- -------- --------
1,298 1,264 1,298
======== ======== ========
Carrying Value:
Opening balance 8,087 8,035 8,035
======== ======== ========
Closing balance 8,287 8,134 8,087
======== ======== ========
Regional Analysis 31 Dec 31 Dec 30 Jun
20 19 20
GBP'000 GBP'000 GBP'000
Botswana 7,130 7,106 7,025
South Africa 1,109 1,022 1,038
Zimbabwe 48 6 24
8,287 8,134 8,087
========= ========= =========
Exploration and evaluation assets relate to expenditure incurred in exploration for diamonds in Botswana, South Africa and Zimbabwe. The directors are aware that by its nature there is an inherent uncertainty in exploration and evaluation assets and therefore inherent uncertainty in relation to the carrying value of capitalized exploration and evaluation assets.
During the prior year, some licences held by the Group in its subsidiary company Sunland Minerals (Pty) Ltd were relinquished. Therefore, the directors decided to impair the costs of exploration on these licences. Accordingly, an impairment of GBP34,394 (2019: GBP435,139) had been recorded by the Group in the year ended 30 June 2020.
On 6 February 2017 the Group entered into an Option and Earn-In Agreement with Vutomi Mining Pty Ltd and Razorbill Properties 12 Pty Ltd (collectively known as ‘Vutomi’), a private diamond exploration and development firm in South Africa. Pursuant to the terms of the Agreement, Botswana Diamonds earned a 40% equity interest in the project.
On 20 July 2020 the Company agreed to acquire the KX36 Diamond discovery in Botswana, along with two adjacent Prospecting Licences and a diamond processing plant. These interests are part of a package held by Sekaka Diamonds. Botswana Diamonds plc acquired 100% of the shares of Sekaka. The vendor was Petra Diamonds. The consideration comprised a cash payment of US$300,000 and a 5% royalty on future revenues. The cash consideration is payable on a deferred basis with US$150,000 payable on 27 November 2021 and the balance on or before 27 November 2022. The acquisition was completed on 30 November 2020.
The directors believe that there were no facts or circumstances indicating that the carrying value of intangible assets may exceed their recoverable amount and thus no impairment review was deemed necessary by the directors.
The realisation of these intangible assets is dependent on the successful discovery and development of economic diamond resources and the ability of the Group to raise sufficient finance to develop the projects. It is subject to a number of significant potential risks, as set out below:
-- licence obligations; -- exchange rate risks; -- uncertainties over development and operational costs;
— political and legal risks, including arrangements with governments for licenses, profit sharing and taxation;
— foreign investment risks including increases in taxes, royalties and renegotiation of contracts;
-- title to assets; -- financial risk management; -- going concern; and -- operational and environmental risks.
Included in additions for the period are GBP7,223 (June 2020: GBP14,599) of wages and salaries and GBP30,210 (June 2020: GBP76,910) of directors remuneration which has been capitalized. This is for time spent directly on the operations rather than on corporate activities.
5. SHARE CAPITAL
Deferred Shares - nominal value of 0.75p per share Number Share Capital Share Premium
GBP'000 GBP'000
At 1 July 2019 and 1 July 2020 239,487,648 1,796,157 -
At 30 June 2020 and 31 December 2020 239,487,648 1,796,157 -
============ ============== ==============
Ordinary Shares - nominal value of 0.25p per share Number Share Capital Share Premium
GBP'000 GBP'000
At 1 July 2019 576,555,235 1,441 10,300
Issued during the period 51,000,000 128 128
Share issue expenses - - (10)
At 31 December 2019 627,555,235 1,569 10,418
------------ -------------- --------------
Issued during the period 43,666,667 109 153
Share issue expenses - - (7)
At 30 June 2020 671,221,902 1,678 10,564
------------ -------------- --------------
Issued during the period 50,000,000 125 175
Share issue expenses - - (5)
At 31 December 2020 721,221,902 1,803 10,734
============ ============== ==============
Movements in share capital
On 18 July 2019, the Company raised GBP250,000 through the issue of 50,000,000 new ordinary shares of 0.25p each at a price of 0.50p per share to provide additional working capital and fund development costs.
On 18 November 2019, a total of 1,000,000 warrants were exercised at a price of 0.60p per warrant for GBP6,000.
On 28 January 2020, the Company raised GBP250,000 through the issue of 41,666,667 new ordinary shares of 0.25p each at a price of 0.60p per share to provide additional working capital and fund development costs. Each placing share has one warrant attached with the right to subscribe for one new ordinary share at 0.6p per share for a period of two years from 28 January 2020.
On 12 June 2020, a total of 2,000,000 warrants were exercised at a price of 0.60p per warrant for GBP12,000.
On 7 September 2020, The Company raised GBP300,000 through the issue of 50,000,000 new ordinary shares of 0.25p each at a price of 0.60p per share to provide additional working capital and fund development costs. Each placing share has one warrant attached with the right to subscribe for one new ordinary share at 0.6p per share for a period of two years from 7 September 2020.
6. SHARE BASED PAYMENTS
WARRANTS
Dec 2020 Jun 2020 Dec 2019
Number of Warrants Weighted average Number of Warrants Weighted average Number of Warrants Weighted average
exercise price in exercise price in exercise price in
pence pence pence
Outstanding
at
beginning
of the
period 105,939,394 0.60 66,272,727 0.60 67,272,727 0.60
Issued 50,000,000 0.60 41,666,667 0.60 - -
Exercised - - (2,000,000) (1,000,000) 0.60
Expired - - - - - -
Outstanding
at end of
the period 155,939,394 0.60 105,939,394 0.60 66,272,727 0.60-
Further information of the warrants are detailed in Note 5 above.
7. POST BALANCE SHEET EVENTS
On 22 January 2021 the Company announced that it had raised GBP363,000 via the placing of 60,500,000 new ordinary shares at a placing price of 0.60p per share. Each placing share has 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.
The net proceeds of the placing will fund ongoing diamond exploration in South Africa and Botswana and will also provide the Company with additional working capital.
On 16 February 2021 the Company announced it had 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). Botswana Diamonds prospecting assets comprise the recently acquired Sekaka Diamonds Exploration Pty Ltd database and Prospecting Licenses, as well as the Prospecting Licences held by Botswana Diamonds subsidiary, Sunland Minerals Pty Ltd.
Cooperation Agreement highlights;
– DESB (and its partner, Burgundy) can earn up to a 70% interest in BOD’s Botswana Sunland Minerals and Sekaka’s Prospecting Licences
– BOD can earn a 15% interest in Prospecting Licences held by DESB (and partners) on the first US$1.5m spent on exploration by DESB where BOD’s database assists in the discovery of a primary kimberlite
– On 3(rd) party Prospecting Licences where targets are identified in BOD’s database, a joint earn-in will be negotiated at the time
- For new Botswana Prospecting Licences, DESB (and its partner, Burgundy) can earn up to 70% 8. APPROVAL
The Interim Report for the period to 31(st) December 2020 was approved by the Directors on 29(th) March 2021.
9. AVAILABILITY OF REPORT
The Interim Statement will be available on the website at www.botswanadiamonds.co.uk
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