World News: 22:03 GMT Wednesday 15th May 2019. [Horizonte Minerals Plc via Globe Newswire via SPi World News]
LONDON, May 15, 2019 (GLOBE NEWSWIRE) -- the nickel development company focused in Brazil, announces it has today published its unaudited financial results for the three month period to 31 March 2019 and the Management Discussion and Analysis for the same period. Both of the above have been posted on the Company's website and are also available on SEDAR at .
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Horizonte Minerals plc is an AIM and TSX-listed nickel development company focused in Brazil. The Company is developing the Araguaia project, as the next major ferronickel mine in Brazil, and the Vermelho nickel-cobalt project, with the aim of being able to supply nickel and cobalt to the EV battery market. Both projects are 100% owned.
There were no major non-cash transactions during the three months ended 31 March 2019.
The principal activity of the Company and its subsidiaries (together ‘the Group’) is the exploration and development of precious and base metals. There is no seasonality or cyclicality to the Group’s operations.
The Company’s shares are listed on the Alternative Investment Market of the London Stock Exchange (AIM) and on the Toronto Stock Exchange (TSX). The Company is incorporated and domiciled in the United Kingdom. The address of its registered office is Rex House, 4-12 Regents Street, London SW1Y 4RG.
The condensed consolidated interim financial statements have been prepared using accounting policies consistent with International Financial Reporting Standards and in accordance with International Accounting Standard 34 . The condensed interim financial statements should be read in conjunction with the annual financial statements for the year ended 31 December 2017, which have been prepared in accordance with International Financial Reporting Standards (IFRS).
The condensed interim financial statements set out above do not constitute statutory accounts within the meaning of the Companies Act 2006. They have been prepared on a going concern basis in accordance with the recognition and measurement criteria of International Financial Reporting Standards (IFRS). Statutory financial statements for the year ended 31 December 2018 were approved by the Board of Directors on 28 March 2019 and delivered to the Registrar of Companies. The report of the auditors on those financial statements was unqualified.
The condensed interim financial statements of the Company have not been audited or reviewed by the Company’s auditor, BDO LLP.
The audited financial statements prepared as at 31 December 2018 include certain disclosures in note 2.4 regarding a material uncertainty of the Groups ability to continue as a going concern. These disclosures medium remain pertinent and due to the current operations on the Group not generating any revenues access to additional funding sources maybe required within the next 12 months in order to continue operations.
The Directors have a reasonable expectation that the Group has the ability to raise additional funds required in order to continue in operational existence for the foreseeable future and they therefore continue to adopt the going concern basis of accounting in preparing these Financial Statements. However, given the uncertainty surrounding the ability and likely timing of securing such investment finance the Directors are of the opinion that there exists a material uncertainty exists that may cast significant doubt on the Group and Parent Company’s ability to continue as a going concern. The financial statements do not include the adjustments that would result if the Group and Parent Company were unable to continue as a going concern.
The Board continuously assesses and monitors the key risks of the business. The key risks that could affect the Group’s term performance and the factors that mitigate those risks have not substantially changed from those set out in the Group’s 2018 Annual Report and Financial Statements, a copy of which is available on the Group’s website: and on Sedar: The key financial risks are liquidity risk, foreign exchange risk, credit risk, price risk and interest rate risk.
The preparation of condensed consolidated interim financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the end of the reporting period. Significant items subject to such estimates are set out in note 4 of the Group’s 2018 Annual Report and Financial Statements. The nature and amounts of such estimates have not changed significantly during the interim period.
The condensed interim financial statements have been prepared under the historical cost convention as modified by the revaluation of certain of the subsidiaries’ assets and liabilities to fair value for consolidation purposes.
The same accounting policies, presentation and methods of computation have been followed in these condensed interim financial statements as were applied in the preparation of the Group’s Financial Statements for the year ended 31 December 2018, except for the impact of the adoption of the Standards and interpretations described below.
The preparation of condensed interim financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group’s Accounting Policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the condensed interim financial statements, are disclosed in Note 4 of the Group’s 2018 Annual Report and Financial Statements.
The Group operates principally in the UK and Brazil, with operations managed on a project by project basis within each geographical area. Activities in the UK are mainly administrative in nature whilst the activities in Brazil relate to exploration and evaluation work. The reports used by the chief operating decision maker are based on these geographical segments.
A reconciliation of adjusted loss from operations per reportable segment to profit/(loss) before tax is provided as follows:
As at 31 March 2019, there was a finance expense of £50,356 (2018: £49,122) recognised in finance costs within the Statement of Comprehensive Income in respect of this contingent consideration arrangement, as the discount applied to the contingent consideration at the date of acquisition was unwound.
The change in the fair value of contingent consideration payable to Xstrata Brasil Mineração Ltda generated a credit to profit or loss of £279,320 for the three months ended 31 March 2019 (31 March 2018: £108,569) due to changes in the functional currency in which the liability is payable.
Intangible assets comprise exploration and evaluation costs and goodwill. Exploration and evaluation costs comprise internally generated and acquired assets. Exploration licences comprise the Vale dos Sonhos exploration licence acquired from a subsidiary of Glencore in November 2015.
No dividend has been declared or paid by the Company during the three months ended 31 March 2019 (2018: nil).
The calculation of the basic and diluted loss per share of (0.031) pence for the 3 months ended 31 March 2019 (31 March 2018 loss per share: (0.029) pence) is based on the loss from continuing operations attributable to the equity holders of the Company of £ (453,470) for the three month period ended 31 March 2018 (31 March 2018: Loss £415,960) divided by the weighted average number of shares in issue during the period of 1,442,836,440 (weighted average number of shares for the 3 months ended 31 March 2018: 1,426,463,050).
Details of share options that could potentially dilute earnings per share in future periods are disclosed in the notes to the Group’s Annual Report and Financial Statements for the year ended 31 December 2018.
The Directors believe there to be no ultimate controlling party.
The nature of related party transactions of the Group has not changed from those described in the Group’s Annual Report and Financial Statements for the year ended 31 December 2018.
The Group had capital expenditure contracted for at the end of the reporting period but not yet incurred of £120,765 relating to intangible exploration assets. All other commitments remain as stated in the Group’s Annual Financial Statements for the year ended 31 December 2018.
There are no events which have occurred after the reporting period which would be material to the financial statements.
The Condensed interim financial statements were approved by the Board of Directors on 15 May 2019.
Globe Newswire: 22:03 GMT Wednesday 15th May 2019
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