DJ Block Commodities Ltd: Interim Results for the 6 months to 31 December 2019
Block Commodities Ltd (BLCC)
Block Commodities Ltd: Interim Results for the 6 months to 31 December 2019
01-Apr-2020 / 07:00 GMT/BST
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The issuer is solely responsible for the content of this announcement.
Block Commodities Limited / Epic: BLCC / Sector: Mining
Block Commodities Limited ('Block Commodities' or 'the Company')
Interim Results for the 6 months to 31 December 2019
Chairman's Statement
I am pleased to present the interim report for the six months ended 31
December 2019. As announced on 27 March 2019, the Company is looking to for
opportunities to enter the Medicinal Cannabis Market. Investment in this
sector was formally approved by shareholders at a General Meeting held on 27
December 2019.
Our Farmer 3.0 program will continue with a potential pilot to grow
medicinal grade cannabis with a farmers' cooperative in Zambia. We are
currently awaiting the licence to be issued. Block Commodities will be the
exclusive of- taker and this opportunity offers the Company assured access
to quality product without the need for significant upfront capital
expenditure.
Our option to acquire Greenbelt Company Limited was extended on 30 January
2020. Further progress remains on hold pending legislation in Sierra Leone.
Ian Tordoff was appointed CEO on 21 November 2019 after joining as a
consultant earlier in the year. Ian has brought together an impressive
Scientific Advisory Team who will be helping the Company to introduce
downstream cannabis-based nutraceuticals and wellness products.
The exploration licence for the Company's original potash project at Lac
Dinga in the Republic of Congo was renewed, for a further two years in July
2019. Unfortunately, our farm-in partner, African Agronomix Limited, was not
able to commence its exploratory drilling in the remaining part of the
regional dry season. Planning for the next drilling campaign is underway,
however COVID-19 restrictions, both in the country and the wider region
could adversely impact the ability to mobilise activity as planned
Results
The results for the period showed an operating loss of $0.4m (HY19: loss
$0.6m). Finance charges were lower at $0.1m (HY98: $0.2m) resulting in a
loss before tax of $0.4m (HY18: $0.6m). Cash balances at 31 December 2019
were $45,000, (201 8: $1,000).
At 31 December 2019, the Group is reporting Net Liabilities of $559,000. The
Company is currently in negotiations with the lender of the loan note with a
view to the conversion of the loan note into equity. This would both return
the Group balance sheet to a net asset position, as well as reduce the
accruing finance costs going forward.
Board changes
I would like to welcome Ian Tordoff to the board as CEO to lead the Company
in its new phase of development. I have stepped back from my executive role.
Subsequent to the period end, Neil Clayton was appointed Finance director.
Outlook
The Company is looking to work with its Scientific Advisory Team to identify
suitable products and opportunities in the nutraceuticals and wellness
sectors. These initiatives will require the Company to raise additional
capital.
COVID-19 has had a significant impact already in the capital markets and in
order to ensure any funds raised are deployed to maximum effect, the board
intends to limit expenditure to essential corporate costs whilst keeping a
close watch on opportunities for the business that offer investor value.
Chris Cleverly
Chairman
31 March 2020
UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2019
Unaudited Consolidated Income Statement
For the half year to 31 December 2019
Unaudited Unaudited Audited
6 months to 6 months to Year ended
31 December 31 December 30 June
2019 2018 2019
Note $'000 $'000 $'000
Operating (248) (453) (778)
expenses
Impairment of:
- loan to - (50 (50)
unquoted
company
Other gains (42) 97 119
/(losses)
Operating loss (290) (406) (709)
Net finance (99) (158) (364)
expense
Loss before (389) (564) (1,073)
taxation
Income tax - - -
expense
Loss for the (389) (564) (1,073)
period
attributable to
owners of the
parent company
Loss per share: 5 (0.007 cents) (0.01 cents)
basic and
diluted
(0.02 cents)
All results relate to continuing activities
Unaudited Consolidated Comprehensive Income Statement
For the half year to 31 December 2019
Unaudited Unaudited Audited
6 months to 6 months to Year ended
31 December 31 December 30 June
2019 2018 2019
$'000 $'000 $'000
Loss for the period (389) (564) (1,073)
Other comprehensive income
Exchange translation - (12) 1
differences on foreign
operations
Total comprehensive income (389) (576) (1,072)
for the period attributable
to owners of the parent
company
Unaudited Consolidated Statement of Financial Position
As at 31 December 2019
Unaudited Unaudited Audited
31 31 30 June
December December
2019
2019 2018
Note $'000 $'000 $'000
Non-current
assets
Intangible assets: exploration 3,000 3,000 3,000
activities 6
Property plant and equipment - 3 -
Total non-current 3,000 3,003 3,000
assets
Current assets
Trade and other 37 1 25
receivables
Cash and cash 45 1 80
equivalents
Total current 82 2 105
assets
Total assets 3,082 3,005 3,105
Current
liabilities
Trade and other (1,582) (1,797) (2,076)
payables
Loan note 7 (2,059) (1,635) (1,951)
Net (559) (427) (922)
(liabilities)/ass
ets
Equity
Issued capital 8 19,907 19,345 19,341
Share based 3,036 2,882 2,850
payment reserve
Foreign exchange translation (572) (586) (572)
reserve
Retained earnings (22,930) (22,068) (22,541)
Total equity (559) (427) (922)
attributable to
equity holders
Unaudited Consolidated Statement of Cash Flows
For the half year to 31 December Unaudited Unaudited Audited
2018
6 months 6 months year
to to ended
31 31 30 June
December December
2019
2019 2018
Operating $'000 $'000 $'000
activities
Loss before tax (389) (564) (1,073)
Adjustments for:
Impairment of loan to unquoted - 50 50
company
Depreciation - 3 6
Movements in exchange 45 (106) (109)
Net interest 99 158 364
expense
Operating cash flow before (245) (460) (702)
movements in working capital
Working capital adjustments:
- Decrease / (increase) in - 10 10
inventory
- Decrease / (increase) in - 26 27
receivables
- Increase / (decrease) in 123 226 298
payables
Cash used in (122) (198) (427)
operations
Net interest paid - - -
Net cash outflow from operating (122) (198) (427)
activities
Investing
activities
Loan to unquoted company - (50) (50)
Net cash flow from investing - (50) (50)
activities
Financing activities
Issue of shares 87 96 96
Issue of convertible loan note 308
Net cash flow from financing 87 96 404
activities
Net decrease in cash and cash (35) (152) (73)
equivalents
Cash and cash equivalents at 80 153 153
start of the period
(MORE TO FOLLOW) Dow Jones Newswires
April 01, 2020 02:00 ET (06:00 GMT)
Effect of foreign exchange rates - - -
Cash and cash equivalents at end 45 1 80
of the period
Notes to the Unaudited Interim Financial Statements
1. General information
Block Commodities is a public limited company incorporated and domiciled in
the Guernsey. The address of its registered office is Richmond House, St
Julian's Avenue, St Peter Port, Guernsey GY1 1GZ.
The Company is admitted to trading on the Aquis Stock Exchange Growth
market.
The unaudited interim financial statements for the 6 months ended 31
December 2019 were approved for issue by the board on 31 March 2020.
The interim financial statements for the 6 months ended 31 December 2019 and
the 6 months ended 31 December 2018 are unaudited and do not constitute full
accounts. The comparative figures for the year ended 30 June 2019 are
extracts from the annual report and do not constitute statutory accounts.
The unaudited interim financial statements have been prepared in US Dollars
as this is the currency of the primary economic environment in which the
Group operates.
2. Basis of preparation
The condensed consolidated financial statements of the Group for the six
months ended 31 December 2019, which are unaudited and have not been
reviewed by the Company's auditor, have been prepared in accordance with the
International Financial Reporting Standards ('IFRS'), as adopted by the
European Union, accounting policies adopted by the Group and set out in the
annual report for the year ended 30 June 2019 (available at
www.blockcommodities.com [1]). The Group does not anticipate any additional
significant change in these accounting policies for the year ended 30 June
2020. References to 'IFRS' hereafter should be construed as references to
IFRSs as adopted by the EU.
While the financial figures included in this report have been computed in
accordance with IFRSs applicable to interim periods, this report does not
contain sufficient information to constitute an interim financial report as
that term is defined in IFRSs.
The financial information contained in this report also does not constitute
statutory accounts under the Companies (Guernsey) Law 2008, as amended.
3. Significant accounting policies
Basis of accounting
The unaudited interim financial statements have been prepared on the
historical cost basis except for financial instruments measured at fair
value. The principal accounting policies adopted are consistent with those
of the financial statements for the year ended 30 June 2019.
4. Earnings per share
The calculation of basic and diluted earnings per share is based on the
following data:
Unaudited Unaudited Unaudited
6 months 6 months year
to to ended
31 31 30 June
December December
2019
2019 2018
$'000 $'000 $'000
Loss for the purpose of basic
loss per share
(564) (564) (1,073)
Number of shares
Weighted average number of 5,413,743 4,826,314 4,831,793
ordinary shares for the purposes ,462 ,237 ,287
of calculating basic and diluted
loss per share
Basic and diluted loss per share (0.01c) (0.01c)) (0.02c)
(cents)
-attributable to equity holders
5. Intangible assets Unaudited Unaudited Unaudited
6 months to 6 months to year ended
31 December 31 December 30 June
2019 2018 2019
$'000 $'000 $'000
3,000 3,000 3,000
Evaluation and exploration costs are capitalised in accordance with IFRS6
The asset comprises the Lac Dinga exploration licence in the Republic of
Congo held by La Societé des Potasses et des Mines SA ("SPM") in which the
Group has a 70% interest. The second term of the licence was renewed for a
further 2 years in July 2019.
In order to develop the asset and issue a maiden resource statement, the
Group announced on 19 July 2017 that it has entered an agreement with
African Agronomix Limited ("AAX"), whereby AAX has the right to acquire up
to 100% of the Company's interest in Lac Dinga project structured over four
distinct phases. The agreement was effective 17 October 2017. AAX delayed
commencement of the next phase of exploration work pending receipt of the
license renewal and were not able to mobilise in the remaining dry season
this period. Planning for the next phase continues.
6. Loan Note
$'000
At 1 July 2018 1,423
Unpaid interest capitalised 306
Exchange rate adjustment (94)
At 31 December 2018 1,635
Exchange rate adjustment (8)
At 30 June 2019 1,627
Unpaid interest capitalised 350
Exchange rate adjustment 81
At 31 December 2019 2,059
On 1 September 2017, the Company, with agreement of the lender, renewed the
term of the loan for a further 2 years. The loan is repayable on the earlier
of:
· 1 September 2019;
· completion by the Company of equity financing which (in aggregate)
raises more than GBP2.0m; and
· completion of any non-trade finance debt financing.
In addition, the lender has the right at any time to convert any amount of
the loan outstanding at a conversion price of 0.02p per ordinary share or,
if lower, at a price per share at which shares are issued for cash following
the renewal of the loan.
The Company has not met its obligations and accordingly a provision has been
made for the full amount of interest and arrangement fees under the
agreement through to 31 August 2019.
The amount of unpaid interest and fees capitalised at 1 September 2019 was
$350,000. The Company is in negotiations with the lender to restructure the
loan and to convert a proportion, to be agreed, into equity. This will be
sufficient to eliminate the net liabilities.
8. Share
Capital
Ordinary shares of no par value
Allotted and fully paid
Number $'000
At 1 July 2018 4,730,363,150 19,314
Issue of shares 107,000,000 641
At 31 December 2018 4,837,363,150 19,345
Cost of issue of shares - 4
At 1 July 2019 4,837,363,150 19,341
Issue of shares 2,525,094,700 566
At 31 December 7,362,457,850 19,907
2019
On 19 November 2019, convertible loan notes with a principal of $324,000
were converted into 1,275,980,000 new ordinary shares at a price of 0.02p
per share.
On 19 November 2019, creditors for fees and expenses amounting to $151,000
were settled by the allotment of 584,114,700 new ordinary shares at a price
of 0.02p per share.
On 19 November 2019, a further 665,000,000 new ordinary shares were issued
for cash at 0.02p per share.
For more information, visit: http://www.blockcommodities.com [2]
The Directors of the Company accept responsibility for the content of this
announcement.
For further information, please contact:
Block Commodities Limited
Chris Cleverly info@blockcommodities.com
Ian Tordoff
Aquis Stock Exchange Corporate
Adviser:
Alexander David Securities Limited
David Scott - Corporate Finance +44 (0) 20 7448 9820
James Dewhurst - Corporate Broking +44 (0) 20 7448 9820
ISIN: GG00B4QYTJ50
Category Code: IR
TIDM: BLCC
LEI Code: 2138001KNTXRAZTFKU51
Sequence No.: 55821
EQS News ID: 1012267
End of Announcement EQS News Service
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