November 13, 2014

Final Results and Notice of AGM

13 November 2014


Stellar Diamonds plc (“Stellar” or the “Company”)
Final Results and Notice of AGM

Stellar Diamonds plc, the London listed (AIM: STEL) diamond development company focused on West Africa,
announces its final results for the period ended 30 June 2014.
Operational Highlights:

Baoulé Project, Guinea:

  • 75% JV interest earned through combined asset / funding of US$5 million
  • Targeted in-house (non JORC) resource of over 3 million carats modelled at diamond value of US$200/ct
  • Trial mining commenced with large gem quality diamonds recovered post period end
  • Objective to generate regular cash flow from Baoulé during 2015

Tongo Dyke-1 Project, Sierra Leone:

  • Definitive feasibility study in progress
  • Bulk sampling completed post period end, generating a parcel of 1,180 carats
  • Grade of 183cpht recovered, a 53% increase on previous grade of 120cpht
  • Analysis of surface mining methods being conducted to assess routes to potential early stage cash flow
  • Revised resource statement and project valuation modelling currently being updated

Stellar Diamonds Chief Executive Karl Smithson commented:

“Stellar has continued to deliver on its milestones this financial year. Since entering a joint venture on the Baoulé kimberlite pipe project in Guinea we have quickly established a trial mining operation that has delivered its first diamonds with higher grades than expected. The presence of larger gems of around five carats in size from early production runs has been particularly encouraging. Our target is to increase production towards 2,000 carats per month and to establish a regular cycle of diamond exports and sales during 2015.”

“At the Tongo kimberlite dyke project in Sierra Leone, following on from a positive economic scoping study on the 1.1 million carat resource of Dyke-1, the Stellar Board decided to advance the project to the feasibility stage. The bulk sampling phase of this feasibility study has been completed and has returned higher grades than previously established, with the presence of larger gem quality diamonds in the sample. This indicates that an upgrade in the diamond resource is considered likely, which could impact positively on the value of the project. I look forward to reporting on the year ahead at this exciting time for the Company.”

About Stellar Diamonds plc

Stellar is an AIM quoted (AIM: STEL) West African focused diamond development company which has commenced trial mining of its Baoulé kimberlite in Guinea, and is progressing the 1.1 million carat Tongo Dyke-1 resource in Sierra Leone through a definitive feasibility study. In addition, Stellar holds the 3 million carat Droujba project in Guinea and continues to pursue both diplomatic and legal channels to ensure the proper reinstatement of its Kono licences in Sierra Leone.

** ENDS **

For further information contact the following or visit the Company’s website at

Karl Smithson, CEOPhilip Knowles, CFO Stellar Diamonds plcStellar Diamonds plc Tel: +44 (0) 20 7010 7686Tel: +44 (0) 20 7010 7686
Emma EarlColin Rowbury Daniel Stewart & Company plc (Nomad/Broker) Tel: +44 (0) 20 7776 6550Tel: +44 (0) 20 7776 6550
Lottie Brocklehurst St Brides Media & Finance Ltd Tel: +44 (0) 20 7236 1177
Hugo de Salis (Financial PR) Tel: +44 (0) 20 7236 1177

Chairman’s Statement

Tremendous progress has been made during the period in developing our flagship projects in Guinea and Sierra Leone, in line with our strategy to become a significant diamond producer focused on the prolific diamond region of West Africa. Importantly we have recently commenced trial mining at our Baoulé kimberlite pipe project in Guinea which is expected to generate first cash flows this year and then on a regular basis throughout 2015. We continue to advance our kimberlite dyke project at Tongo through the feasibility stage and together with on-going resource building at Baoulé, including the established resource of the Company’s other projects, we are targeting a future aggregate resource base for the Company of 7.5 million carats which we estimate would have an in-situ value of US$1 billion.

Baoulé Project

Stellar entered into a Joint Venture (‘JV’) with Société Tassiliman in December 2013 to acquire 75% of the Baoulé diamondiferous kimberlite pipe in the world famous Aredor diamond district of Guinea. The Aredor area is renowned for the production of large gem quality diamonds over many years, including numerous stones over 100 and 200 carats in size. These diamonds are all from alluvial sources and we believe that Baoulé may be one of the primary hard rock kimberlite sources for alluvial diamonds mined in the area.

We believe this deal could be transformational for Stellar, as it gives us exposure to a likely multi-million carat resource with substantially higher diamond values than previously modelled. Over the past six months we have moved very quickly and commenced trial mining at Baoulé with the objective of not only creating near term cash flow, but also generating a sufficiently large diamond resource to justify a full scale commercial mining operation.

With mining and processing plant and equipment already in-country at our Mandala and Droujba projects, which are currently on care and maintenance, we were able to relocate and reassemble two plants to construct a single 100tph integrated kimberlite processing plant at Baoulé, without incurring additional capital expenditure.

Stripping and mining of the kimberlite pipe commenced whilst the plant was assembled and commissioned in September and October this year. First results have been announced, whereby 196 carats were recovered at an average grade of 17 carats per hundred tonne (‘cpht’). This has exceeded our minimum grade expectations of 13cpht. Excitingly, large diamonds, including gems of 5.5 carats and 5.1 carats (octahedrons), have been recovered with 57% of the stones being classified as gem diamonds and 43% industrial or near-gem, which is highly encouraging at this early stage of trial mining. Our objective is to process at least 100,000 tonnes for diamond grade and value estimation over the coming months which we expect will yield around 2,000 carats per month when optimum processing capacity is achieved. Subject to these target amounts being achieved, we expect to conduct a diamond export and sale every two months with our first export being in late 2014.

Tongo Project

We recently completed a second bulk sampling programme at our Tongo Dyke-1 Project in Sierra Leone as part of the on-going Definitive Feasibility Study. This dyke has a current inferred JORC resource of 1.1 million carats at a high grade of 120cpht and diamond value of US$248 per carat, which makes it one of the highest dollar per tonne kimberlites worldwide.

In total 1,182 carats have been recovered from the latest bulk sampling programme at an average grade of 183cpht, which is 53% higher than the 120cpht applied in the current resource estimate following the re-processing of the tailing material. This diamond parcel has been exported to Antwerp and is currently undergoing valuation and modelling, with results expected in late 2014. We are delighted with the outstanding quality of the diamonds recovered, with a large proportion of diamonds being classified as gem quality, several of which are +1 carat in size including a 6.7 carat stone.

Although Tongo potentially provides us with a low-capex, high grade and high margin diamond project, with a long life of mine that can be extended on addition of the remaining dykes, underground mining can be challenging and entail lengthy development processes before significant cash flows are realised. In order to address this challenge we appointed independent consultants to assess various mining options from surface. A number of viable options have been evaluated to generate cash flow in conjunction with the on-going underground mine construction. We are currently re-calculating the financial model and are anticipating an increase in the current NPV10 of US$53 million, in line with the resource/grade upgrade and surface/underground mine plan.

We intend to continue the feasibility study during 2015 through the required resource drilling and consulting studies and estimate that this could be completed in mid-2015 should the required funding be secured.

Other Projects

Our two additional projects in Guinea are currently under care and maintenance whilst we focus on delivering value at Baoulé and Tongo. In 2013 we reported a resource increase to 3.1 million carats at our Droujba kimberlite pipe project and an economic scoping study has also been completed. Diamond grades at this project range from 88cpht in the Droujba pipe and 140cpht in the Katcha dyke. Our alluvial mining licence at Mandala has been renewed for five years where previous mining by the Company has yielded 128,000 carats at a grade of 33cpht, with gems of up to 37 carats. It is estimated (non JORC) that 200,000 carats remain within the resource.

Our Kono licences in Sierra Leone are still in dispute with the Ministry of Mines. However we continue to pursue diplomatic remedies to have the licences reinstated. Underground trial mining completed by Stellar on the two primary kimberlite dykes at Kono yielded over 4,000 carats of high quality diamonds, and the return of these licences to Stellar would obviously return significant value to our portfolio.

Diamond Market

We believe we are mining the right commodity at the right time. The outlook for the rough diamond market remains robust. Due to the on-going recovery of the US economy and growing Chinese and Far East demand, rough-diamond prices have doubled in the past five years, jumping around 10% in 2014 alone. With a shortage of new diamond mines worldwide and a general long term production decline forecast, the Directors believe Stellar will be ideally positioned as an emerging diamond producer to benefit from the continued forecast increase in rough diamond prices as demand continues to outstrip supply.


During the period we have successfully raised £4m (US$6.5m) through a combination of placings, share subscriptions and exercising warrants through Directors, institutions, existing and new shareholders. Additionally Stellar Directors have shown their commitment to the Company with a number of Director deals during the period and fees being paid in equity. These cumulative funds were allocated to advancing the two key projects at Baoulé and Tongo.

Whilst capital markets remain challenging for junior resource companies we believe that Stellar should continue to attract investor interest as we continue trial mining at Baoulé to generate cash flow and also deliver what we expect to be a positive feasibility study at Tongo.


Being focused on West Africa, Ebola has obviously been a considerable concern for Stellar since the outbreak and we have partnered with International SOS in Guinea with regards to a response plan. Education and awareness is the key in managing this situation and Stellar has been at the forefront of elevating the threat of Ebola and its prevention amongst the workforce and the surrounding local communities and civic leaders. Increased levels of sanitation and health screening have been established at the Baoulé camp and project sites and have been rolled out to the homes of the Company’s employees. Restrictions on staff travel are also implemented and a total ban on travel to the epicenters of the Ebola virus in Guinea is in place. We are continuing to monitor the situation very closely to ensure the continued well-being of all employees and that of the local communities.


We believe that our focus on trial mining at Baoulé and delivering a feasibility study at Tongo will continue to generate value for our shareholders. Our near term objective is to become a significant diamond producer in the West African region at a time when the outlook for rough diamond prices and the general sentiment to the diamond sector is positive. Furthermore, Baoulé with its near term cash-flow generation and large stone potential and Tongo with its high grade and high value diamonds and flexible mining options offer a compelling investment case.

I would like to take this opportunity to thank our supportive shareholder base for the continued support and additionally, our highly competent team, both at the Board and management level and on the ground. Their remarkable efforts over the period have enabled us to deliver on milestones and create significant value as we come closer to our objective of becoming a leading diamond producer.

Peter Daresbury

Non-Executive Chairman

12 November 2014


Stellar Diamonds plc
Consolidated statement of comprehensive income
For the year ended 30 June 2014
(Stated in U.S. dollars)
Notes Year ended30 June 2014 Year ended 30 June 2013
Cost of sales
Gross loss
Impairment of intangibles 4 (760,000) (2,000,000)
Administrative expenses (3,300,549) (2,998,492)
(4,060,549) (4,998,492)
Loss before tax (4,060,549) (4,998,492)
Income tax expense
Loss after tax attributable to equity holders of the parent (4,060,549) (4,998,492)
Total comprehensive expense for the year attributable to equity holders of the parent (4,060,549) (4,998,492)
Basic and diluted loss per share (0.01) (0.02)



Stellar Diamonds plc
Consolidated and company statement of financial position
As at 30 June 2014
(Stated in U.S. dollars) Consolidated Company
Notes 30 June 2014 30 June 2013 30 June 2014 30 June 2013
Non-current assets
Intangible Assets 4 15,754,794 13,663,445 1,302,561 1,302,561
Property, plant and equipment 5 2,323,640 3,278,294
Investment in Subsidiary 4,157,484 4,157,484
Total non-current assets 18,078,434 16,941,739 5,460,045 5,460,045
Current assets
Trade and other receivables 167,769 37,506 13,701,230 11,104,479
Cash and cash equivalents 1,358,671 60,669 22,810 531
Total current assets 1,526,440 98,175 13,724,040 11,105,010
Total assets 19,604,874 17,039,914 19,184,085 16,565,055
Equity and liabilities
Capital and reserves
Share capital 24,906,611 19,051,534 24,906,611 19,051,534
Share premium 28,609,454 28,457,522 28,609,454 28,457,522
Reverse acquisition reserve 17,073,279 17,073,279
Share option reserve 5,008,756 4,423,538 2,674,838 2,089,620
Foreign currency translation reserve (773,363) (773,363)
Warrant reserve 27,643 27,643
Accumulated loss (56,491,193) (52,680,614) (36,310,633) (32,500,055)
Total equity 19,134,550 16,325,259 19,134,550 16,325,258
Non-current liabilities
Provision 104,369 104,369
Total non-current liabilities 104,369 104,369
Current liabilities
Trade and other payables 365,955 610,286 49,535 239,797
Total current liabilities 365,955 610,286 49,535 239,797
Total liabilities 470,324 714,655 49,535 239,797
Total equity and liabilities 19,604,874 17,039,914 19,184,085 16,565,055



Stellar Diamonds plc
Consolidated statement of changes in equity
For the year ended 30 June 2014
(Stated in U.S. dollars) Share
(note 13)
(note 13)
Share option
(note 14)
(note 2)
Balance at 30 June 2012 18,220,394 27,018,776 4,177,000 17,073,279 (47,744,789) 18,744,660
Total comprehensive
income for the year
(4,998,492) (4,998,492)
Issue of placing shares 831,140 1,466,592 2,297,732
Share issue costs (27,846) (27,846)
Share options issued 309,205 309,205
Share options expired (62,667) 62,667
Balance at 30 June 2013 19,051,534 28,457,522 4,423,538 17,073,279 (52,680,614) 16,325,259
Total comprehensive
income for the year
(4,060,549) (4,060,549)
Issue of placing shares 5,855,077 718,175 6,573,252
Share issue costs (312,486) (312,486)
Warrants issued (265,581) 265,581
Warrants exercised 11,824 (11,824)
Transfer to profit &
loss account
(226,114) 226,114
Share options issued 609,074 609,074
Share options expired (23,856) 23,856
Balance as at 30 June 2014 24,906,611 28,609,454 27,643 5,008,756 17,073,279 (56,491,193) 19,134,550



Stellar Diamonds plc
Consolidated and company statement of cash flows
For the year ended 30 June 2014
(Stated in U.S. dollars)
Consolidated Company
June 2014 June 2013 June 2014 June 2013
Cash flows from operating activities:
Net loss for the year (4,060,549) (4,998,492) (4,060,548) (3,998,493)
Adjustments for:
Depreciation of property, plant and equipment 505,195 720,096
Impairment of intangibles 760,000 2,000,000
Share-based payment expense 609,074 309,205 609,074 309,205
Shares issued to Directors and
officers in lieu of d fees
190,407 175,570 190,407 175,570
Net foreign exchange
(21,822) 31,898 16,074 (4,515)
Change in working
capital items:
in receivables
(130,263) 464,354 (2,596,751) 1,304,897
(Decrease)/Increase in
trade and other payables
(244,331) 234,293 (190,262) 105,465
Net cash used in operations (2,392,289) (1,063,076) (6,032,006) (2,107,871)
Cash flows from investing
Purchases of property, plant
and equipment
(29,868) (55,199)
Payments to acquire
intangible assets
(2,372,022) (2,420,686)
Net cash used in investing
(2,401,890) (2,475,885)
Cash flows from financing
Proceeds from issue of share
capital, net of costs
6,070,359 2,094,317 6,070,359 2,094,317
Net cash generated by
financing activities
6,070,359 2,094,317 6,070,359 2,094,317
Net increase/(decrease) in
cash and cash equivalents
1,276,180 (1,444,644) 38,353 (13,554)
Cash and cash equivalents,
beginning of year
60,669 1,537,211 531 9,570
Effect of foreign exchange rate changes 21,822 (31,898) (16,074) 4,515
Cash and cash equivalents,
end of year
1,358,671 60,669 22,810 531

1. Basis of preparation

1.1 Basis of accounting

Stellar Diamonds plc is presenting audited financial statements as of and for the year ended 30 June 2014. The comparative period presented is audited financial statements as of and for the year ended 30 June 2013.

The financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRSs”) as published by the IASB. The financial statements have also been prepared in accordance with IFRSs as adopted by the European Union and in accordance with the Companies Act, 2006. The consolidated financial statements have been prepared on an historical cost basis, as adjusted for certain financial instruments carried at fair value.

1.2 Going concern

The group made a loss for the year of $4,060,549 and had cash and cash equivalents of $1,358,671 at the balance sheet date.

During the year the Group raised just under $6.6m through three placings and a warrant exercise. Following the year end, in October 2014 the Group raised a further $0.6m for the purchase of additional earth moving vehicles for the Baoulé project in Guinea.

In October 2014 the Baoulé project moved into Trial Mining Production. This exercise is anticipated to provide positive cash flows to the Group from January 2015, though until the first parcel of stones is completed and sold, anticipated to be before the end of 2014, the full economics of the Trial Mining exercise will not be known. If results are in line with management’s expectations the requirement for further working capital for the Group would be greatly reduced.

In addition to the anticipated cash flows from Baoulé, given the positive exploration and evaluation results produced at Tongo to date and the stage of development of the project, the Directors believe that the Company will continue to have the ability to access sufficient levels of finance to meet essential administrative expenses and to continue the Group’s projects for the foreseeable future. On that basis, the Directors continue to adopt the going concern basis in preparing these financial statements.

The going concern of the group is dependent on obtaining additional finance in order to meet its working capital needs for a period of not less than twelve months from the date of approval of the financial statements and to continue to fund development of exploration projects. This indicates the existence of a material uncertainty which may cast significant doubt on the ability of the company and the group to continue as a going concern.

The Directors are confident that they can fulfil the funding requirements of the Company through attracting funding through trial mining, joint ventures, sale of assets, reducing overheads or the issue of further shares by way of private placement. On this basis, the Directors are satisfied that it is appropriate to prepare the financial statements of the group on a going concern basis. The financial statements do not include any adjustment to the carrying amount or classification of assets and liabilities that would occur if the company was unable to continue as a going concern.

2. Segments

The Company is engaged in the acquisition, exploration, development and production of diamond properties in the West African countries of Sierra Leone and Guinea. Information presented to the Chief Executive Officer for the purposes of resource allocation and assessment of segment performance is focused on the individual projects in geographical locations. The reportable segments under IFRS 8 are therefore as follows:

  • Mandala (Guinea);
  • Bomboko (Guinea);
  • Kono (Sierra Leone);
  • Tongo (Sierra Leone);
  • Droujba (Guinea);
  • Baoulé (Guinea);
  • Other exploration; and
  • Corporate activities in the United Kingdom.

Following is an analysis of the Group’s revenue, results, assets and liabilities by reportable segment for the year ended 30 June 2014:

Baoulé Kono Tongo Droujba Otherexploration Corporate Total
$ $ $ $ $ $ $ $
Revenue – sale of diamonds
Segment result (1,025,086) (760,000) (2,275,463) (4,060,549)
Finance costs
Loss before tax (4,060,549)
Income tax expense
Loss after tax (4,060,549)
Segment assets 2,007,901 710,717 4,306,613 6,056,042 4,594,776 249,446 1,679,379 19,604,874
Segment liabilities (114,030) (18,847) (337,447) (470,324)
Share based payment expense 609,074 609,074
Carrying value of intangible assets 683,708 4,300,528 5,844,308 4,274,963 236,678 414,609 15,754,794
Net book value of property, plant and equipment 1,177,971 25,926 5,752 153,335 948,966 10,847 843 2,323,640
Capital additions– property, plant and equipment– intangible assets 553- 25,926683,708 -370,313 3,3891,088,146 -663,623 -45,559 29,8682,851,349
Depreciation of property, plant and equipment 504,725 2,465 70,162 406,700 470 984,522
Impairment of intangibles 760,000 760,000

Following is an analysis of the Group’s revenue, results, assets and liabilities by reportable segment for the year ended 30 June 2013:

Mandala Bomboko Kono Tongo Droujba Other
Corporate Total
$ $ $ $ $ $ $ $
Revenue – sale of diamonds
Segment result (1,092,305) (2,000,000) (1,906,187) (4,998,492)
Finance costs
Loss before tax (4,998,492)
Income tax expense
Loss after tax (4,998,492)
Segment assets 1,694,819 902,810 4,700,766 4,980,468 4,048,427 203,887 508,737 17,039,914
Segment liabilities (84,390) (30,000) (2,000) (82,112) (82,914) (433,239) (714,655)
Share based payment expense 309,205 309,205
Carrying value of intangible assets 4,690,215 4,756,162 3,611,340 191,119 414,609 13,663,445
Net book value of property, plant and equipment 1,682,143 8,217 220,107 1,355,666 10,847 1,314 3,278,294
Capital additions– property, plant and equipment– intangible assets 2,222- -317,639 2,1401,403,175 49,5731,356,562 1,264- 55,1993,077,376
Depreciation of property, plant and equipment 719,966 3,522 93,414 559,754 130 1,376,786
Impairment of intangibles 2,000,000 2,000,000

3. Loss for the year

Loss for the year has been arrived at after charging/(crediting):

Year ended30 June2014 Year ended30 June 2013
$ $
Fees payable to the company’s auditors for theaudit of the group’s accounts:
– audit services 42,395 38,457
– non-audit services
Net foreign exchange (gain)/loss (21,827) 31,898
Depreciation of property, plant and equipment 505,195 720,096
Impairment of Intangibles 760,000 2,000,000
Share-based payments 609,074 309,205

$479,327 of depreciation charges were capitalised as exploration and evaluation expenditure during the year and consequently are not included in the Statement of Comprehensive Income (2013: $656,690).

4. Intangible assets

Consolidated Company

30 June2014 30 June2013 30 June2014 30 June2013
$ $ $ $
Exploration and evaluation expenditure:
Opening balance 30,586,695 27,509,319 4,408,327 4,408,327
Additions 2,851,349 3,077,376
Closing balance 33,438,044 30,586,695 4,408,327 4,408,327
Opening balance 16,923,250 14,923,250 3,105,766 3,105,766
Charge for the year 760,000 2,000,000
Closing balance 17,683,250 16,923,250 3,105,766 3,105,766
Carrying value 15,754,794 13,663,445 1,302,561 1,302,561

At 30 June 2014, the group did not have any contractual commitments for the acquisition of intangible assets.

The realisation of the net carrying value of intangible assets of $15,754,794 is dependent on the discovery and successful development of economic mineral reserves including the group’s ability to raise sufficient finance to develop the projects and other factors, as discussed in the notes.

In the year ended 30 June 2012 a dispute emerged in relation to the two exploration licenses held for the Kono project. The group received a letter from the Ministry of Mines of Sierra Leone (“The Ministry”) which asserts that the Ministry ought not to have granted the renewals of the Company’s licences in 2010 under the Mines and Minerals Act of 2009 and that as a result the Company no longer has mineral rights over the licences. The Company disputes the assertions and has continued to pursue the available political, diplomatic and legal routes available. Should these routes prove unsuccessful the carrying value included in the statement of financial position would be written off to the Statement of Comprehensive Income.

Since the dispute arose the Company has made considerable efforts to resolve the issue with the Ministry. In the view of the Directors, the fact that no other operators have been present on the licence since the licence was revoked, together with the Company’s continued lobbying of the Ministry and other interested parties, indicates an increased likelihood that the licences will be reissued in due course. However, given the time that has elapsed since the initial revocation of the licences and the continued uncertainty of the timing of any resolution, the Directors believe that it is prudent to impair the expenditure on the Kono asset during its time on care and maintenance since the revocation of the licence, which has previously been capitalised as evaluation and exploration expenditure. This impairment amounts to $760,000. Further expenditure on the Kono licence, until such a time as the licence is returned, will be expensed through the profit and loss account.

5. Property, plant and equipment

Mining assets Machinery and
$ $ $
At 1 July 2012 11,079,305 9,693,272 20,772,577
Additions 55,199 55,199
At 30 June 2013 11,079,305 9,748,471 20,827,776
Additions 29,868 29,868
At 30 June 2014 11,079,305 9,778,339 20,857,644
At 1 July 2012 11,079,305 5,093,391 16,172,696
Charge for the year 1,376,786 1,376,786
At 30 June 2013 11,079,305 6,470,177 17,549,482
Charge for the year 984,522 984,522
At 30 June 2014 11,079,305 7,454,699 18,534,004
Carrying value:
At 30 June 2014 2,323,640 2,323,640
At 30 June 2013 3,278,294 3,278,294

In accordance with the accounting policy stated in note 2.5, the Group tests property, plant and equipment for impairment when an indication of impairment exists. The recoverable amount of cash generating units is determined based on value-in-use calculations, which require the use of estimates. Cash flows were estimated over a period of 10 years. The estimated cash flows from the exploration projects produced net present values well in excess of their carrying values and are based on the following assumptions:

  • economically recoverable reserves and resources are based on management’s expectations based on availability of reserves at mine sites and technical studies undertaken internally and by a Competent Person, where available;
  • diamond prices are based on independent valuations and models and an annual increase of 4.5% thereafter;
  • discount rate of 10%;
  • inflation rate of 4.5%;and
  • the remaining useful life.

The Group did not have any further contractually committed costs for the acquisition of property, plant and equipment at 30 June 2014.

The realisation of tangible assets of $2,323,640 is dependent on the discovery and successful development of economic mineral reserves including the group’s ability to raise sufficient finance to develop the projects and other factors, as discussed in the notes.

6. Dividends

No dividends have been paid nor are proposed for the period (2013: nil).

In accordance with AIM Rule 20, the Company’s audited Reports and Financial Statements for the financial year ended 30 June 2014 has been posted on the Company’s website and has been sent to those shareholders who have elected to receive the report by post.

7. Annual General Meeting

The Annual General Meeting will be held on 8 December 2014 at 3.00pm at the offices of Daniel Stewart & Company Plc, Becket House, 36 Old Jewry, London, EC2R 8DD. The Notice and Form of proxy has been posted to shareholders and is available for download on the Company’s website at