Alexander Mining : Final Results

Alexander Mining plc

Audited Results for the Year Ended 31 December 2013

Alexander Mining plc ("Alexander" or the "Company"), the AIM-listed mining and mineral processing technologies company, announces its audited results for the year ended 31 December 2013.

Highlights:

·      Excellent close working relationship developed during the year with Ebullio as part of its commitment to building a mining company in Turkey

·      Working with Ebullio to establish commercial AmmLeach® processing plant for zinc in Turkey

·      World's first zinc cathode produced in April 2014 using AmmLeach® technology

·      Notable success on granting of patents

Chairman's Statement

Since writing a year ago, I am delighted to say that we can look back upon a period of solid progress in our efforts to commercialise our breakthrough leaching technology.  The most significant development during the period was the strong relationship built with the Ebullio Group ('Ebullio').

Ebullio is an award winning commodity hedge fund group and its intention is to build a large mining group in Turkey.  Although the commercial and licence agreement signed with Ebullio in January 2014, which was dependent upon Ebullio acquiring the assets in Turkey of Red Crescent Resources Limited, was not completed, Ebullio and Alexander continue to develop their close working relationship.

Importantly, this relationship still has the potential to accelerate significantly the first commercial adoption of Alexander's proprietary leaching technology in Turkey and, later, in other countries.  With Ebullio, we remain highly focused on establishing a profitable commercial scale zinc cathode production plant in Turkey using Alexander's AmmLeach® technology.  The intention would be for a plant taking feed from a combination of the future acquisition of suitably attractive zinc oxide properties and third party sources.  The successful establishment of processing operations using Alexander's technology should give Alexander a significant royalty stream.

This initiative would build upon the major development announced in April 2014 of the breakthrough testwork to produce the world's first zinc cathode using our AmmLeach® technology.  We believe that this confirms our AmmLeach process as the only economically viable method to unlock the value of hitherto problematic, yet attractively high grade, zinc oxide deposits.  These deposit types exist in many mining countries of the world and we have embarked upon a focused approach to a range of mining companies with significant interests in such deposits and/or major zinc producers.

In addition to work with Ebullio, Alexander has continued its discussions and commercialisation efforts with a range of other companies for the application of its technology to copper, cobalt and zinc.

During the period, we announced an improved licensing agreement with Metalvalue Capital Holdings (now called Iskandia Holdings).  Iskandia Holdings continues to investigate potential opportunities for the use of our leaching technology.

The results of the programme to protect our leaching technology intellectual property ('IP'), measured by patents granted, have been excellent.  This includes patents granted in the USA, Australia, Canada, South Africa, Mexico, Peru and Mongolia.

Outlook

Although world economic growth has started to recover, equity and base metals' markets have reflected nervousness about current events and future risks, especially given global geopolitical tensions and concerns over growth in China.  The bellwether base metal copper price has weakened since the beginning of 2014.  However the zinc price is up year on year.  Nevertheless, whilst short term sentiment has seen mining equity prices soften, mining is a long term business and we remain optimistic about our business plans.  Reduced operating margins for most base metals mines are supportive of the potentially significant capital and operating cost savings that the commercial use of Alexander's leaching technology offers. 

I look forward with considerable confidence and enthusiasm.

Finally, I would like to express my appreciation for the continued hard work and dedication of Alexander's employees, consultants and directors.

Matt Sutcliffe

Executive Chairman

2 May 2014

For further information please contact: 

Martin Rosser	Matt Sutcliffe
Chief Executive Officer	Executive Chairman
Mobile: + 44 (0) 7770 865 341	Mobile: [phone]

Alexander Mining plc

1st Floor

35 Piccadilly

London

W1J 0DW

Tel:           [phone]

Fax:          [phone]

Email:       [e-mail]

Website:  www.alexandermining.com

Nominated Advisor and Broker

Northland Capital Partners Limited

Louis Castro / Lauren Kettle

[phone]

Public/Media Relations

Britton Financial PR

Tim Blackstone

[phone]

Consolidated income statement for the year ended 31 December 2013

		2013	2012
		£'000	£'000

Consolidated statement of comprehensive income for the year ended 31 December 2013

		2013	2012
		£'000	£'000
Loss for the year		(1,365)	(1,537)
Other comprehensive income:
Items that will or may be reclassified to profit or loss:
Exchange differences on translating foreign operations		(1)	-
Total comprehensive loss for the year attributable to equity holders of the parent		(1,366)	(1,537)

Consolidated balance sheet as at 31 December 2013

		2013	2012
		£'000	£'000
Assets
Property, plant and equipment		-	16
Total non-current assets		-	16
Trade and other receivables		60	169
Cash and cash equivalents		398	519
Total current assets		458	688
Total assets		458	704
Equity attributable to owners of the parent
Issued share capital		13,633	13,606
Share premium		13,020	12,043
Translation reserve		(61)	(60)
Accumulated losses		(26,423)	(25,079)
Total equity		169	510
Liabilities
Trade and other payables		289	194
Total current liabilities		289	194
Total liabilities		289	194
Total equity and liabilities		458	704

Consolidated statement of cash flows for the year ended 31 December 2013

		2013	2012
		£'000	£'000
Cash flows from operating activities
Operating loss - continuing operations		(1,370)	(1,570)
Depreciation and amortisation charge		8	13
Decrease / (Increase) in trade and other receivables		7	60
Increase in trade and other payables		95	71
Shares issued in payment of expenses		69	-
Share option charge		21	23
Profit on disposal of property, plant and equipment		(4)	-
Net cash outflow from operating activities		(1,174)	(1,403)
Cash flows from investing activities
Interest received		1	17
Proceeds from sale of subsidiary		101	465
Proceeds from sale of property, plant and equipment		12	-
Net cash inflow from investing activities		114	482
Cash flows from financing activities
Proceeds from the issue of share capital		935	200
Net cash inflow from financing activities		935	200
Net decrease in cash and cash equivalents		(125)	(721)
Cash and cash equivalents at beginning of year		519	1,257
Exchange differences		4	(17)
Cash and cash equivalents at end of year		398	519

	Share capital	Share premium	Translation reserve	Accumulated losses	Total equity
	£'000	£'000	£'000	£'000	£'000
At 1 January 2012	13,599	11,850	(60)	(23,565)	1,824
Accumulated loss for year	-	-	-	(1,537)	(1,537)
Total comprehensive loss for the year attributable to equity holders of the parent	-	-	-	(1,537)	(1,537)
Share option costs	-	-	-	23	23
Shares issued	7	193	-	-	200
At 31 December 2012	13,606	12,043	(60)	(25,079)	510
Accumulated loss for year	-	-	-	(1,365)	(1,365)
Translation difference	-	-	(1)	-	(1)
Total comprehensive loss for the year attributable to equity holders of the parent	-	-	(1)	(1,365)	(1,366)
Share option costs	-	-	-	21	21
Shares issued	27	977	-	-	1,004
At 31 December 2013	13,633	13,020	(61)	(26,423)	169

Notes

1. Financial statements

The financial information set out in this announcement does not constitute statutory accounts within the meaning of Section 434 of the Companies Act 2006 for the year ended 31 December 2013 or for the year ended 31 December 2012, but is derived from those accounts.  The financial statements for 2013 will be delivered to the Registrar of Companies following the Company's Annual General Meeting.  The auditors have issued an unqualified report on these accounts. The auditor has issued an unqualified opinion in respect of the financial statements which does not contain any statements under the Companies Act 2006, Section 498(2) or Section 498(3).  The auditor has raised an Emphasis of Matter in relation to going concern and the availability of project finance as follows:

"In forming our opinion, which is not modified, we have considered the adequacy of the disclosures made in note 2(a) to the financial statements concerning the requirement of the company to raise further finance within the next twelve months in order to continue its operations and to meet its commitments. If the Company is unable to secure such additional funding, this may have a consequential impact on the Company's and the Group's ability to continue as a going concern.

The outcome of any corporate developments or fundraising cannot presently be determined. These conditions, along with the other matters explained in note 2(a) to the financial statements, indicate the existence of a material uncertainty which may cast significant doubt about the Company's and the Groups' ability to continue as a going concern. The financial statements do not include the adjustments that would result if the Company was unable to continue as a going concern."

2. Summary of significant accounting policies

a)   Basis of preparation

The financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRSs") in force at the reporting date and their interpretations issued by the International Accounting Standards Board ("IASB") as adopted for use within the European Union.

The consolidated financial statements incorporate the financial statements of the Company and entities controlled by the Company (its subsidiaries) made up to 31 December each year.

Going Concern

Based on a review of the Group's budgets and cash flow forecasts, the directors have identified that if current and near-term corporate development opportunities are unsuccessful in providing adequate funding, the Company will need to raise finance within the next twelve months in order to continue its operations and to meet its commitments.

In common with many mining, exploration and intellectual property development companies, the Company needs to raise finance for its activities in discrete tranches to finance its activities for limited periods. The Directors are confident that the Company currently has a range of corporate development opportunities, including the further development of its partnership with its significant shareholder, Ebullio Commodities Limited, which could include significant funding outcomes and moreover that, if necessary, any further funding can be raised as and when required. On this basis, the Directors have concluded that it is appropriate to draw up the financial statements on the going concern basis. However, there can be no certainty that either development opportunities or alternative funding will be secured in the necessary timescales and this indicates the existence of a material uncertainty that may cast significant doubt on the ability of the Company and the Group to continue as a going concern. The financial statements do not include any adjustments, particularly in respect of fixed assets, investments, receivables and provisions for winding up which could be necessary if the Company and Group ceased to be a going concern.

b)   Research and development expenditure

Research costs are recognised in the income statement as an expense as incurred.  Development costs are recognised in the income statement as an expense as incurred unless the development project meets specific criteria for deferral and amortisation.  No development costs have been deferred to date because there is insufficient information at the balance sheet date to quantify the expected future economic benefits from the proprietary leaching technologies.

3. Dividends

The directors do not recommend the payment of a dividend (2012: nil).

4 . Post balance sheet events

On 19 February 2014, the Company issued 4,604,762 new shares of 0.1p each for cash at 5.25p each, plus 487,387 new shares of 0.1p each in lieu of £25,149 in fees due to advisers and consultants.  Following admission of the above shares, the Company has a total of 175,589,010 ordinary shares in issue.

Annual Report

The Annual Report will be posted to all shareholders by 15 May 2014 and will be available on the Company's website at www.alexandermining.com.  Additional copies will be made available to the public, free of charge, from the Company's registered office at 35 Piccadilly, London W1J 0DW. 

Annual General Meeting

The Company's Annual General Meeting will be held at the East India Club, 16 St James's Square, London, SW1Y 4LH at 10:30am on Wednesday 11 June 2014.  The Notice of the AGM and the associated explanatory notes relating to the resolutions to be proposed at that meeting will accompany the Company's annual report.

Disclaimers and forward looking statements

Neither the contents of the Company's website nor the contents of any website accessible from hyperlinks on the Company's website (or any other website) is incorporated into, or forms part of, this announcement.

This news release contains forward looking or future-oriented financial information, being information which is not historical fact, including, without limitation, statements regarding potential results of metallurgical testwork, anticipated applications for the Company's intellectual property and discussions of future plans and objectives. Although the Company believes that the expectations reflected by such information are reasonable, these statements are based on assumptions and factors concerning future events that may prove to be inaccurate. Such statements are necessarily based upon a number of estimates and assumptions based on information available to the Company about itself and the business in which it operates.  Information used in developing forward-looking information has been acquired from various sources including third party consultants, suppliers, regulators and other sources and is subject to numerous risks and uncertainties that could cause actual results and future events to differ materially from those anticipated or projected. Important factors that could cause actual results to differ materially from the Company's expectations are the continuing availability of capital resources to fund the commercialisation of Alexander's technologies; continued positive results from trials and applications of Alexander's AmmLeach® and HyperLeach® technologies and other factors as disclosed in Company documents filed from time to time. Management uses forward-looking statements because it believes they provide useful information to the shareholders with respect to proposed transactions involving Alexander, and cautions readers that the information may not be appropriate for other purposes and should not be read as guarantees of future performance or results. 

The Company disclaims any intention or obligation to revise or update such statements unless required by law. 

This information is provided by RNS

The company news service from the London Stock Exchange

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