Interim report July-September 2015

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Bertha Wilkerson
5 years ago
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1 Interim report July-September 2015 (This is a translation of the Swedish version, if any differences the Swedish one is valid) The third quarter of July to September Operating income totaled TSEK (-1 383) TSEK Profit after tax was for the period amounted to TSEK (-1 363) TSEK Earnings per share amounted to SEK (-0.02) SEK Shareholders ' equity per share was 0.13 SEK (0.20) SEK The period from January to September Operating income totaled TSEK (-5 018) TSEK The result after tax was TSEK (-5 018) TSEK Earnings per share amounted to SEK (-0.12) SEK Shareholders ' equity per share was 0.13 SEK (0.20) SEK Significant events during the reporting period Delta Minerals has signed a frame agreement with the Golden Kingdom Holding Ltd. to purchase magnetite. Significant events after the end of the reporting period The company now supplies iron ore to China. Supply contract and advance payment has been made with Chinese SunGlobe Mining and Resources Corporation. Delta Minerals obtained in October 2015 advance payment on the first delivery. Delta Minerals has signed an agreement concerning sale of construction sand as of October 2015 Delta Minerals has decided to broaden the production with bricks. The operations of the Philippines are now assessed to reach a break-even. Delta Minerals is pursuing in November a fully implements guaranteed rights issue of 3.2 MSEK with an option for the Board to decide on an oversubscription about 2 MSEK. 1

2 Delta Minerals Delta Minerals AB is a public Swedish limited company listed on AktieTorget with rights to pursue environmental projects in the Philippines with the support of the regional/local authorities. The company's objective is to operate in river deltas in Northern/Northwestern Philippines for the extraction of minerals and sand. The company's operations During the year, a pilot production in Aparri, Cagayan was used to build up sales channels. This work has now been fruitful and the initial payment to the company concerning the sale took place in October. Magnetite The company has during the period reached a so-called framework agreement with Golden Kingdom Holding (GKH) for magnetite sale to China. GKH is a trading company in commodities, based in Singapore. This framework agreement is additional to the company's earlier signed frame contract with SunGlobe Mining and Resources Corporation. After the end of the reporting period, has a first delivery of magnetite with advance payment has been made with the Chinese SunGlobe Mining and Resources Corporation. The agreement is based on a framework agreement on 60,000 tons of iron ore. Construction sand Agreements have been signed with Heritage Resources and Mining Corp. regarding sale of construction sand. The contract initially amounts to around 4000ton/month. Volumes may increase during the dry season from November to July. The products are delivered directly from the plant in Aparri and thereby Delta Minerals have no transport costs. Usage areas are prefab structures as beams for example the ongoing Skyway facility in Manila, cement constructions for buildings, cement pipes for drains in Manila as well as other cities in the Philippines. Bricks The river material that Delta Minerals takes out of the Cagayan River includes small particles known as slimes, which must be separated before the being sold. The material is very suitable for brick production. A company in the southern Philippines provides equipment for this production. The technology is adapted to local conditions. Production is estimated of a few thousand tons per month, leaving a suitable contribution. This production has several advantages for the company: Delta Minerals gets revenues rather than costs for material handling. The production process is labor intensive and provides local jobs. The final product is affordable and contributes to improving housing standards in the region. This operation is Delta Minerals strive to manage all river materials properly. Turnover Recent developments with magnetite sales (iron ore), sale of building material sand and now lately sale of bricks gives a turnover for production in Aparri, Cagayan, which will be in the range of 5-7 MSEK in current annual rate. 2

3 The sale should provide a sufficient contribution to the activities of the Philippines to carry its running costs. The company is now workings in particular on consolidate the sales and began to prepare for the supply of filling sand (reclamation sand) in the first half of 2016 to Chahaya, Singapore. 3

4 Economic outcomes Group highlights SEC Net sales Other operating income Operating expenses Operating profit Net financial items Profit/loss after tax Earnings per share Shareholders ' equity per share Change in cash and cash equivalents Economic outcomes for the parent company During the period, Delta Minerals AB received an advance payment from the sale of magnetite. The advance payment was accounted as a debt and recognized as income as the deliveries are made. Profit after tax for the quarter amounted to -395 TSEK (1 449) TSEK for January-September it amounted to TSEK (-4 262) TSEK. The balance sheet total amounted at the end of the period to TSEK (13 737) TSEK. Economic outcomes group Operating income totaled TSEK ( TSEK) for the third quarter and to TSEK (-5 018) TSEK for January-September. Cash flow was in the third quarter -880 TSEK (-1 629) TSEK and for January to September to TSEK (3 321) TSEK. The balance sheet total at the end of the period was TSEK (12 876) TSEK. Financing The Group's liquid assets amounted to 672 TSEK (3 558) TSEK as at 30 September. The equity ratio as of 30 September amounted to 90 (93) per cent and the equity of TSEK (12 014) TSEK. After the end of the period, the company has decided on a rights issue of 3.2 MSEK and an oversubscription share issue on 2 MSEK. The share issue is fully guaranteed of B-shares. If the issue is oversubscribed, the Board can decide on an oversubscription share issue of up to B-shares. 4

5 Financial and other information Group structure Delta Minerals AB controls 100% of Delta Minerals Global Pacific Inc., based in Manila, Philippines. A wholly owned sales company in based in Singapore In the beginning of 2015 a sales company was formed, Delta Minerals Sg to support sales efforts. Investments The Group's cash net investment amounts for the quarter 39 (0) TSEK and for January to september-190 (0) TSEK. Transactions with related parties Milonga Resources AB has during the quarter by Thomas Lundgren invoiced 11 TSEK regarding consulting and directors ' fees, Thomas Lundgren's CEO of Delta Minerals. International Advisory Management AB (IAM) has during the quarter by Håkan Gustafsson invoiced 0 TSEK regarding consulting and directors ' fees. Hakan Gustafsson is the Chairman of the Board of Delta Minerals. Number of shares The number of outstanding shares as of 30 September are These are divided into A-shares and B-shares. Stockholm 17 November 2015 Thomas Lundgren Håkan Gustafsson Cornelio Casido Christian Bönnelyche CEO and Board Member Chairman of the Board Board Member Board Member This interim report has not been reviewed by the company's Auditors. For further information, please contact Thomas Lundgren, CEO, Tel (0) Financial information Year-end report 25 February 2016 Address Delta Minerals AB (publ) Box 26 SE Danderyd, Sweden 5

6 Accounts Consolidated income statement Amount in Swedish kronor (SEK) Net sales Other external costs Staff costs Depreciation, amortisation and impairment losses Operating profit Financial income Financial expenses Profit before tax Tax Profit for the period Net income attributable to: The parent company's shareholders Non-controlling interests Total net income Earnings per share Earnings per share before and after dilution, SEK See financial ratios for more information CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME Amount in Swedish kronor (SEK) Profit for the period Other comprehensive income Records that later can be reversed in the income statement: Translation differences Other comprehensive income net of tax Total other comprehensive income for the year Total comprehensive income attributable to: The parent company's shareholders Total comprehensive income for the period

7 Consolidated statement of financial position Amount in Swedish kronor (SEK) ASSETS Subscribed but not paid-up capital Non-current assets Goodwill Property, plant and equipment Long-term receivables Total fixed assets Current assets Inventories Other receivables Blocked funds Cash and cash equivalents Total current assets TOTAL ASSETS SHAREHOLDERS ' EQUITY AND LIABILITIES Amount in integer kronor (SEK) Shareholders ' equity Share capital Other capital reserves Reserves Earned income including net income Total shareholders ' equity LIABILITIES Current liabilities Accounts payable Other short-term liabilities Total current liabilities TOTAL LIABILITIES AND SHAREHOLDERS ' EQUITY

8 Consolidated statement of changes in equity Equity Profit for the period Other comprehensive income Total comprehensive income for the period New share issue, net Ongoing unregistered issuance Issue costs Equity Attributable to: The parent company's shareholders Total shareholders ' equity

9 Consolidated statement of cash flows Amount in Swedish kronor (SEK) Cash flow from operating activities before changes in working capital Changes in working capital Cash flow from operating activities Cash flow from investing activities Cash flow from financing activities Change in cash and cash equivalents

10 The Group's financial ratios Amount in Swedish kronor (SEK), where not otherwise specified Results Other income Operating profit Profit/loss after tax Return dimensions Return on shareholders ' equity,% -10.5% -11.4% -27.2% -51.2% -65.7% Return on total capital,% -9.9% -10.6% -25.6% -48.3% -63.9% Financial position Equity/assets ratio,% 90.1% 93.3% 90.1% 93.3% 97.5% Net worth per share, SEK Balance sheet total Shareholders ' equity Per share The total number of outstanding shares, PCs Weighted average number of shares, PCs Earnings per share before dilution, SEK Earnings per share after dilution, SEK * Equity per share before dilution, SEK Shareholders ' equity per share after dilution, SEK * If the loss per share will be lower dilution effects not taken into account. Employees Number of employees closing date

11 Parent company income statement Amount in Swedish kronor (SEK) Other operating income Other external costs Staff costs Operating profit Interest income Interest expenses and similar items Profit/loss after financial items Tax Profit/loss after tax Parent company statement of comprehensive income Amount in Swedish kronor (SEK) This year's results Other comprehensive income, net of tax Total comprehensive income Total comprehensive income attributable to: The parent company's shareholders Total net income

12 Parent company statement of financial position summary Amount in Swedish kronor (SEK) ASSETS Subscribed but not paid-up capital Participations in Group companies Receivables from Group companies Other long-term receivables Total fixed assets Current assets Short-term receivables Other receivables Blocked funds Cash at bank and in hand TOTAL ASSETS SHAREHOLDERS ' EQUITY AND LIABILITIES Share capital Ongoing rights issue Total restricted equity Non-restricted equity Share premium Retained earnings This year's results Total non-restricted equity Total shareholders ' equity Current liabilities Accounts payable Other short-term liabilities Accrued expenses and deferred income Total current liabilities TOTAL LIABILITIES AND SHAREHOLDERS ' EQUITY

13 STATEMENT OF CHANGES IN EQUITY OF THE PARENT COMPANY IN SUMMARY Amount in Swedish kronor (SEK) Equity Profit for the period Other comprehensive income Total comprehensive income for the period New share issue Ongoing non-registered corporate actions Subscribed but not paid-up capital Issue costs Equity

14 Note 1 Summary of significant accounting policies Accounting principles The consolidated financial statements of Delta Minerals Group have been prepared in accordance with IAS 34, interim financial reporting. The same accounting principles, definitions relating to key figures and calculation methods were applied as in the most recent annual report both for the Group and for the parent company. To draw up reports in accordance with IFRS requires the use of some important estimates for accounting purposes. Furthermore, it requires that management make certain estimates for the purposes of applying the Group's accounting policies. Changes in accounting policies and disclosures No standards, amendments and interpretations issued and effective for the financial year beginning 1 January 2015 has had a significant impact on the Group's financial statements. New standards and interpretations which are not yet applied When preparing the consolidated financial statements as of September 30, 2015, a number of standards and interpretations have been published which has not yet entered into force and which are applicable for Delta Minerals. The following is a preliminary assessment of the impact of the introduction of these standards and statements can get at Delta Minerals financial reports: IFRS 9 financial instruments "manages classification, valuation and accounting for financial assets and liabilities. The full version of IFRS 9 was released in July It supersedes the parts of IAS 39 that manages the classification and measurement of financial instruments. IFRS 9 retains a mixed valuation method but simplifies this approach in some respects. The standard is to be applied for annual periods beginning 1 January Earlier application is permitted. The Group has not yet evaluated the impact of the introduction of the standard. IFRS 15 "Revenue from contracts with customers" regulates how accounting of proceeds to occur. The principles to IFRS 15 based on will provide users of financial reports more useful information about the company's revenue. IFRS 15 supersedes IAS 18 Revenue and IAS 11 construction contracts and related SIC and IFRIC. IFRS 15 enters into force 1 January Early application is permitted. The Group has not yet evaluated the impact of the introduction of the standard. No other of the IFRS or IFRIC interpretations, which has not yet entered into force, is expected to have a material effect on the group. 14

Year-end report January-December 2015

Year-end report January-December 2015 (This is a translation if any differences the Swedish one is the valid.) Fourth quarter October to December Operating income totaled -3 075TSEK (-2 641) TSEK Profit