Vast Resources plc / Ticker: VAST / Index: AIM / Sector: Mining
24 December 2018

Vast Resources plc
(Vast or the Company)
Interim Results for the six months to 30 September 2018



  • 47% increase in revenue to $21.942 million (2017:$14.882 million) from the Groups two operational mines in Romania and Zimbabwe
  • 31% increase in administrative overhead expenses ($3.5 million) compared to the same period in the previous year (2017: $2.7 million)
  • A foreign exchange loss of $1.4 million compared to a foreign exchange gain of $1.2 million in the same period in the previous year
  • $1.3 million loss from operations compared to a $0.56 million profit from operations in the same period in the previous year
  • A 83% decrease in total loss after taxation to $2.1 million (2017: loss $12.6 million) due to a $12.5 million exceptional item incurred in the same period in the previous year
  • Optimisation and expansion initiatives at Manaila Polymetallic Mine including construction of the new Carlibaba metallurgical plant impeded due to delay accessing the Tranche B funds from Mercuria
  • Accelerated repayments of historic debts from Mineral Mining to allow the granting of the Baita Plai association licence also impacted the Groups financial results
  • Cash balances at period end $0.661 million (2017:$1.723 million)

Post period end

  • Cash balances at 21 December 2018: $1.379 million

Operational Development

  • Pickstone-Peerless Gold Mine (Zimbabwe)
    • 8% increase in gold production to 13,352 Troy ounces from 12,383 Troy ounces in the six months to 31 March 2018 (six months to 30 September 2017: 8,775 ounces)
  • Manaila Polymetallic Mine (Romania)
    • 61% increase in copper concentrate produced to 1,526 tonnes from 948 tonnes in six months to 31 March 2018 (six months to 30 September 2017:1910 tonnes)
    • 97% increase in zinc concentrate produced to 199 tonnes from 100 tonnes in six months to 31 March 2018 (six months to 30 September 2017: 275 tonnes)
  • Acquisition of Delta Gold Zimbabwe, owners of Eureka Gold Mine, by 25.01% owned Group company Dallaglio Investments (Private) Limited, in April 2018
  • Conditional acquisition of a 29.41% interest in the Blueberry Project in the Golden Quadrilateral of Romania
  • Exclusive access for initial due diligence and pre-agreed joint venture terms on Heritage Diamond Concession in the Marange Diamond Fields

Post period end:

  • Agreement with Botswana Diamonds plc on Heritage Concession on 4 October 2018
  • Right to mine at Baita Plai Polymetallic Mine granted on 16 October 2018
  • Acquisition of 29.41% interest in the Blueberry Project confirmed on 30 October 2018
  • Commencement of drilling at Magura Neagra and Piciorul Zimbrului on 19 November 2018


Share issues during the year: gross proceeds before cost of issue

Shares issuedIssued to
87,27217,100,447Exercise of Warrants
1,250,000238,095,238Issued to investors on placing
863,750133,914,127Subscription by investors

Post period end

Shares issuedIssued to
4,010801,896Exercise of Warrants
425,08670,847,785Issued to investors on placing
100,00016,666,666Subscription by directors
1,000,000188,679,245Issued to investors on placing
68,00068,000,000Issued to Bergen in the context of a $3 million bridge facility

Debt Funding

Post period end

  • A US$3 million bridge facility entered with the Bergen Global Opportunity Fund LP on 19 December 2018 for the purchase of zero coupon convertible securities in two equal Tranches. Each Tranche will not be convertible into shares in the Company for an initial period of 30 days, and the Company can repay each Tranche in full without penalty up until 20 March 2019
  • US$600,000 repaid to Sub-Sahara Goldia Investments Ltd

Board and Management

  • Appointment of Nicholas Hatch as non-executive director on 9 May 2018
  • Appointment of Mark Mabhudhu, diamond specialist, to Board of Vast Zimbabwe on 6 July 2018


The half year coupled with events post period end have been an interesting time for the growth of the Company. Notably the long-expected award of the Baita Plai Association Licence and the re-opening of the Baita Plai Polymetallic Mine will enhance both the profitability and the cash generation capacity of the Romania operations. Management now anticipates that mining at Baita Plai will be able to start operations within six months. Funding required to rehabilitate the infrastructure, improve safety, and expand the galleries will be covered by the recent bridging loan followed by a part of the Tranche B US$5.5m draw down of the Pre-Payment Offtake Agreement with Mercuria when available. The other significant event that will potentially change the direction and near term cashflow of the Company is the signing of the agreement with Red Mercury which should, subject to Red Mercury receiving the final licence, lead to the mining of diamonds on the Heritage Concession in the Marange Diamond Fields of Zimbabwe.

The revenue realised in the current half year period rose 47% on the half year to September 2017 due to a large increase in gold sales. The impact of the noteworthy revenue increase was not directly reflected due to an increase in overheads, from 16.8% of revenue for the half year to September 2017 to 31.1% of revenue for the current half year. This was to a large extent caused by foreign exchange losses incurred in excess of $1.4million for the current half year compared to $1.2million in foreign exchange gains realised in the corresponding period to 30 September 2017. Additional factors were the flooding in the pit at Pickstone Peerless (now rectified) and the inclusion of more than $300,000 in overheads incurred by Delta Gold on the Eureka Gold Mine.

The Manaila mine has performed to the best of its ability with the current plant and equipment available. The Manaila mine in its current state before the investment of new plant has constituted a proof of concept for mining in Romania without which it is doubtful that the Company would have secured the right to mine at Baita Plai or the Blueberry Project. Manaila will only be a cash generator for the Company once we have built the plant in Carlibaba.

Until the new plant is operational we wish to ensure that we mine at a level that does not cause the Company losses, and action has been planned and is being implemented to address inadequate in-pit ore haulage capacity and cost effective conveyance of the required historically budgeted 15,000 tonnes per month in ore volumes from the pit operations to the floatation plant. However a management decision has been made to reduce the budgeted target to 10,000 tonnes per month in order to reduce costs and optimise the floatation plant until the procurement of a new dumper and excavator fleet arrives early 2019. Management had also decided to focus on pre-stripping activity to access higher ore grades but for reasons stated this endeavour was hampered by deficient excavating and transport assets. The low production volumes meant that overheads were not fully recovered resulting in cash costs of concentrate exceeding realisable sales values per tonne. An upgraded truck-and-shovel fleet is expected to be in place at Manaila during the current financial year and is expected to significantly improve delivered ore volumes.

Pickstone-Peerless Gold Mine in Zimbabwe experienced above trend increases in mining and overhead costs in the reporting period. This was occasioned by an unprecedented flooding of the pit and an increase in overburden stripping to access declining oxide ore reserves; to facilitate sulphide mining; and to provide adequate mining areas for future periods. The benefits of this overburden removal will be positively felt during future reporting periods. Cash flow generated at Pickstone-Peerless has generated funds which, together with the local bank overdraft, has funded both the recently constructed sulphide plant and initial expenditure on the Eureka Gold Mine. A $30million debt facility is currently being negotiated to fund the development of Eureka.

Proximal to the Marange Diamond Fields the Group assembled and mobilised a team of geologists and engineers who have undertaken an extensive investigation into the potential of modern alluvial diamond placer deposits and the possibility of the basal Umkondo unit on the Heritage Concession. The Group concluded an exclusive access agreement for due diligence and pre-agreed Joint Venture terms with Red Mercury as outlined in the Company's announcement of 22 August 2018 and since then has completed positive commercial due diligence on the project.

Vast will be focusing on improving results in its core operations in both Romania and Zimbabwe. Opportunities in both jurisdictions will be pursued rigorously with reliance made on its local management and the extensive network of relationships with key parties.

Andrew Prelea
Chief Executive Officer


In Romania, our focus during the reporting period was to secure the Baita Plai Association Licence; to improve the performance of the Manaila Polymetallic Mine; to expand our mineralised footprint in the area proximal to the present open pit mining operation; and to pursue opportunities elsewhere in Romania.

I am happy to report, following the execution of the Association Contract for Baita Plai, we now have the mining rights. We have deployed the start-up team to Baita Plai to commence the implementation of the re-start programme.

We intend to publish the start-up works and provide regular updates over the course of the next six months as we target initial production from Baita Plai by the end of H1 2019. Alongside our numerous other production, development and appraisal assets in Romania and Zimbabwe, we have taken a major step forward to achieving our target of mid-tier multi-commodity producer status.

At Manaila, copper and zinc concentrate volumes and quality have not improved, which regrettably impacted adversely on Group profits and cash flows. However, as Andrew Prelea has indicated in his report, the Manaila Mine was a test case for the ability to mine in Romania and has been, we believe, an essential step in the final award of the right to mine at Baita Plai.

Plans are well advanced to construct a metallurgical processing facility proximal to future mining operations to deal with the projected increased ore supply at Manaila both from the original pit and from the Carlibaba extension. The configuration of the new facilities is expected to contribute substantially to the improving efficiency and cost effectiveness of open pit operations as an economic scale of operations will be realisable. Nevertheless, our focus over the next six months is in bringing Baita Plai into profitable production.

We were pleased to announce on 28 September 2018 that surface exploration drilling had commenced at the Magura Neagra and Piciorul Zimbrului prospecting licences (collectively Zagra) in northern Romania. Although a longer term project than the nearby Manaila mine, or our near term production assets at Baita Plai, the licences are highly compelling by virtue of the historic assessments conducted by the previous state exploration company which pointed to both licences demonstrating sufficient size and scale to warrant a comprehensive exploration campaign.

We acquired an effective 29.41% interest the Blueberry Polymetallic Gold Project, a 7.285km brownfield area of prospectivity in the Golden Quadrilateral of Romania located in the immediate vicinity of the now closed Baia de Aries mine.

In Zimbabwe, our focus during the reporting period was to secure a foothold in the Marange Diamond Fields. We have agreed, subject to due diligence, to enter into a potentially significant joint venture on the Heritage Concession. We already hold an 86.67% interest in a SPV which has a due diligence access agreement and pre-agreed joint venture terms regarding the aforesaid diamond concession within the Marange Diamond Fields, widely considered to be one of the richest sources of alluvial diamonds globally. Importantly, the senior management of Vast has been working closely with the community leaders and is developing strong ties with local stakeholders. The wellbeing and advancement of the community is paramount to the success of a long-term business within the Marange Diamond Fields.

In the gold mining field, results at the Pickstone-Peerless Mine have continued to be good, and we also acquired a 23.75% interest in the Eureka Gold Mine, which is planned to be in production by June 2019.

Our finances have been adversely affected by the delay in the completion of due diligence allowing us to draw down the second tranche of the Mercuria finance amounting to $5.5 million. We still expect this to be available for draw down in January 2019, but we have entered into a US$3,000,000 bridge facility with the Bergen Global Opportunity Fund, LP in the interim. Any draw down on this facility is intended to be repaid from the Mercuria funds, so that no conversion rights are expected to apply.

Brian Moritz

For further information visit or please contact:

Vast Resources plc
Andrew Prelea (Chief Executive Officer)
+44 (0) 20 7236 1177
Beaumont Cornish Financial & Nominated Adviser
Roland Cornish
James Biddle
+44 (0) 020 7628 3396
Brandon Hill Capital Ltd Joint Broker
Jonathan Evans
+44 (0)20 3463 5016
SVS Securities Plc Joint Broker
Tom Curran
Ben Tadd
+44 (0)20 3700 0100
St Brides Partners Ltd
Susie Geliher
Juliet Earl
+44 (0) 20 7236 1177

Condensed consolidated statement of comprehensive income
for the six months ended 30 September 2018

30 Sep 201831 Mar 201830 Sep 2017
Cost of sales(16,431)(23,412)(11,815)
Gross profit5,5117,2763,067
Overhead expenses(6,817)(5,259)(2,509)
Depreciation and impairment of property, plant and equipment(2,108)(2,862)(1,259)
Profit (loss) on sale of property, plant and equipment(2)(22)29
Share option and warrant expense(122)(27)
Sundry income293812256
Exchange (loss) gain(1,359)2,3011,152
Other administrative and overhead expenses(3,519)(5,461)(2,687)
Profit (loss) from operations(1,306)2,017 558
Finance income264220
Finance expense(851)(1,202)(676)
Loss on disposal of interest in subsidiary loans(12,538)(12,538)
Loss before taxation from continuing operations(2,131)(11,681)(12,636)
Taxation charge(3,794)
Total Loss after taxation for the year(2,131)(15,475)(12,636)
Other comprehensive income
Items that may be subsequently reclassified to either profit or loss
Gain on available for sale financial assets132
Exchange gain (loss) on translation of foreign operations954(1,435)(976)
Total comprehensive loss for the year(1,176)(16,907)(13,610)
Total loss attributable to:
– the equity holders of the parent company(4,510)(17,295)(13,916)
– non-controlling interests2,3791,8201,280
Total comprehensive profit (loss) attributable to:
– the equity holders of the parent company(3,555)(18,727)(14,890)
– non-controlling interests2,3791,8201,280
Loss per share basic and diluted3(0.09)(0.36)(0.30)

Condensed consolidated statement of changes in equity

for the six months ended 30 September 2018

Share capital Share premium Share option reserve Foreign currency translation reserve Available for sale reserve EBT reserve Retained deficit Total Non-controlling interests Total
$000 $000 $000 $000 $000 $000 $000 $000 $000 $000
At 31 March 201719,420 74,802 1,890 (1,228)(3,942)(69,828)21,114 12,394 33,508
Total comprehensive loss for the period(976)2(13,916)(14,890)1,280(13,610)
Share options and warrants lapsed(79)79
Investment received in subsidiary – Ronquil Enterprises (Pvt) Ltd(757)(757)2,4571,700
Interest in mining asset(4,604)(4,604)4,604
Acquisition of NCI in subsidiary – Sinarom Ming Group SRL(4,075)(4,075)1,772(2,303)
Shares issued for cash:284977 77
– to settle liabilities
At 30 September 201719,448 74,851 1,811 (2,204)2 (3,942)(93,101)(3,135)22,507 19,372
Total comprehensive loss for the period(459)1(3,377)(3,835)540(3,295)
Share option and warrant charges2727 27
Share options and warrants lapsed(258)258
Shares issued for cash:5922,3862,978 2,978
At 31 March 201820,040 77,237 1,580 (2,663)3 (3,942)(96,220)(3,965)23,047 19,082
Total comprehensive loss for the period9541(4,510)(3,555)2,379(1,176)
Share option and warrant charges122122 122
Share options and warrants lapsed(10)10
Acquired through business combination – Delta Gold Zimbabwe (Pvt) Ltd(1,695)(1,695)
Derecognition of EBT reserve3,942(3,715)227 227
Disposal of available for sale investments33 3
Shares issued for cash:5122,3792,891 2,891
At 30 September 201820,552 79,616 1,692 (1,709)7 (104,435)(4,277)23,731 19,454

Condensed consolidated statement of financial position
As at 30 September 2018

30 Sep 201831 Mar 201830 Sep 2017
Group GroupGroup
Non-current assets
Property, plant and equipment451,34745,53443,929
Investment in joint ventures563559
Goodwill arising on consolidation10566
Deferred tax asset465
Current assets
Available for sale investments151312
Cash and cash equivalents6611,3001,723
Total current assets15,23310,77310,031
Total Assets67,70956,86654,425
Equity and Liabilities
Capital and reserves attributable to equity holders of the Parent
Share capital20,55220,04019,448
Share premium79,61677,23774,851
Share option reserve1,6921,5801,811
Foreign currency translation reserve(1,709)(2,663)(2,204)
Available for sale reserve732
EBT reserve(3,942)(3,942)
Retained deficit(104,435)(96,220)(93,101)
Non-controlling interests23,73123,04722,507
Total equity19,45419,08219,372
Non-current liabilities
Loans and borrowings723,77322,63519,059
Deferred tax liability3,3303,330
Current liabilities
Loans and borrowings710,9064,3317,974
Trade and other payables87,7816,0916,880
Total current liabilities18,68710,42214,854
Total liabilities48,25537,78435,053
Total Equity and Liabilities67,70956,86654,425

Condensed consolidated statement of cash flow

for the six months ended 30 September 2018

30 Sep 201831 Mar 201830 Sep 2017
Group GroupGroup
Profit (loss) before taxation for the period(2,131)(11,681)(12,636)
Adjustments for:
Depreciation and impairment charges2,1082,8621,259
(Profit) loss on sale of property, plant and equipment222(29)
Loss on disposal of interest in loans12,53812,538
Share option expense12227
Changes in working capital:
Decrease (increase) in receivables(2,940)8(274)
Decrease (increase) in inventories(1,205)(2,392)(3)
Increase (decrease) in payables2,254(1,998)(1,307)
Cash used in operations(1,790)(614)(452)
Investing activities:
Payments to acquire property, plant and equipment(4,390)(9,197)(6,084)
Payments to acquire subsidiary company(4,490)
Proceeds on disposal of property, plant and equipment8510764
Proceeds of third party investment in subsidiary1,7001,700
Proceeds of derecognition of EBT reserve227
Payments to acquire controlling interest in subsidiary(2,303)(2,303)
Proceeds of loan assignment2,3002,300
Increase in investment in joint venture(4)(102)
Total cash used in investing activities(8,572)(7,495)(4,323)
Financing Activities:
Proceeds from the issue of ordinary shares, net of issue costs2,8913,05577
Proceeds from loans and borrowings granted6,8859,1777,171
Repayment of loans and borrowings(53)(4,149)(2,076)
Total proceeds from financing activities9,7238,0835,172
Increase (decrease) in cash and cash equivalents(639)(26)397
Cash and cash equivalents at beginning of period1,3001,3261,326
Cash and cash equivalents at end of period661 1,300 1,723

Interim report notes

1 Interim Report
These condensed interim financial statements, which are unaudited, are for the six months ended 30 September 2018 and consolidate the financial statements of the Company and all its subsidiaries. The statements are presented in United States Dollars.
The financial information set out in these condensed interim financial statements does not constitute statutory accounts as defined in Section 434(3) of the Companies Act 2006. The condensed interim financial statements should be read in conjunction with the consolidated financial statements of the Group for the year ended 31 March 2018 which have been prepared in accordance with International Financial Reporting Standards as adopted by the European Union (IFRSs). The Auditor's report on those financial statements was unqualified and did not contain a statement under s.498(2) or s.498(3) of the Companies Act 2006.
While the Auditors report for the year ended 31 March 2018 was unqualified, it did include an emphasis of matter concerning going concern, to which the Auditors drew attention by way of emphasis without qualifying their report. Full details of these comments are contained in the report of the Auditors on Page 20 on the annual financial statements for the year ended 31 March 2018, released elsewhere on this website on 28 September 2018.
The accounts for the period have been prepared in accordance with International Accounting Standard 34 Interim Financial Reporting (IAS 34) and the accounting policies are consistent with those of the annual financial statements for the year ended 31 March 2018, unless otherwise stated, and those envisaged for the financial statements for the year ended 31 March 2019.
New IFRS accounting standards
IFRS 15 and IFRS 9 became effective for the Group from 1 January 2018. Asthe effects of applying these standards are considered immaterial to the Group, the Group has elected not to demonstrate the impact of these standards on the current periods results and not to restate prior periods on adoption of thenew standards in 2018.
IFRS 15 Revenue from Contracts with Customers
It was reported the annual financial statements for the year ended 31March2018 that the timing and amount of revenue recognised by the Group for the sale of commodities is such that transfer of risks and rewards generally coincides with the transfer of control at a point in time.

IFRS 9 Financial Instruments
It was reported the annual financial statements for the year ended 31March2018 that the impact of adopting IFRS 9 on the Group results for the year ended 31March 2018 would have been materially unchanged on application of the new standard.
After review of the Groups operations and of the funding opportunities open to the Group, the Directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. Accordingly, the Directors continue to adopt the going concern basis in preparing the unaudited condensed interim financial statements.

This interim report was approved by the Directors on 21 December 2018

2 Segmental analysis

Mining, exploration and development Administration and corporate Total
Europe Africa
$000 $000 $000 $000
Six months to 30 September 2018
Production costs(3,233)(13,198)(16,431)
Gross profit (loss)(620)6,1315,511
Profit (loss) on sale of property, plant and equipment(2)(2)
Share option and warrant expense(122)(122)
Sundry income136157293
Exchange (loss) gain(1,047)(312)(1,359)
Other administrative and overhead expenses(866)(1,224)(1,429)(3,519)
Finance income2626
Finance expense(191)(660)(851)
Loss on disposal of subsidiary company loans
Taxation (charge)
Profit (loss) for the year from continuing operations(3,406)3,141(1,866)(2,131)
30 September 2018
Total assets14,59953,0902067,709
Total non-current assets11,46341,502(489)52,476
Additions to non-current assets7093,68014,390
Total current assets3,13611,58850915,233
Total liabilities8,88424,50314,86848,255

Year to 31 March 2018
Production costs(4,298)(19,114)(23,412)
Gross profit (loss)(1,200)8,4767,276
Depreciation and impairment(1,398)(1,461)(3)(2,862)
Profit (loss) on sale of property, plant and equipment(23)1(22)
Share option and warrant expense(27)(27)
Sundry income470342812
Exchange (loss) gain1,4528492,301
Other administrative and overhead expenses(2,041)(738)(2,682)(5,461)
Finance income4242
Finance expense(11)(1,159)(32)(1,202)
Loss on disposal of subsidiary company loans(12,538)(12,538)
Taxation (charge)(3,794)(3,794)
Profit (loss) for the year from continuing operations(2,751)1,707(14,431)(15,475)

Mining, exploration and development Administration and corporate Total
Europe Africa
$000 $000 $000 $000
31 March 2018
Total assets15,35941,30620156,866
Total non-current assets12,17334,409(489)46,093
Additions to non-current assets3,1346,0639,197
Total current assets3,1867,45669011,332
Total liabilities8,21814,38115,18637,785

Six months to 30 September 2017
Production costs(2,212)(9,603)(11,815)
Gross profit (loss)6202,4473,067
Depreciation and impairment(747)(510)(2)(1,259)
Profit (loss) on sale of property, plant and equipment2929
Share option and warrant expense
Sundry income90166256
Exchange (loss) gain1,0321201,152
Other administrative and overhead expenses(1,120)(289)(1,278)(2,687)
Finance income2020
Finance expense(575)(101)(676)
Loss on disposal of subsidiary company loans(12,538)(12,538)
Taxation (charge)
Profit (loss) for the year from continuing operations(96)1,258(13,798)(12,636)
30 September 2017
Total assets15,38838,9578054,425
Total non-current assets11,71633,165(487)44,394
Additions to non-current assets2,1453,9396,084
Total current assets3,6725,79256710,031
Total liabilities5,27814,44715,32835,053

3 Loss per share

30 Sep 201831 Mar 201830 Sep 2017
Group GroupGroup
Loss per ordinary share has been calculated using the weighted average number of ordinary shares in issue during the relevant financial year.
The weighted average number of ordinary shares in issue for the period is:5,284,328,1944,821,870,747 4,676,819,360
Losses for the period: ($000)(4,510)(17,295)(13,619)
Loss per share basic and diluted (cents)(0.09)(0.36)(0.30)
The effect of all potentially dilutive share options is anti-dilutive.

4 Property, Plant and equipment

GroupPlant and machinery Fixtures, fittings and equipment Computer assets Motor vehicles Buildings and Improvements Mining assets Capital Work in progress Total
$000 $000 $000 $000 $000 $000 $000 $000
Cost at 1 April 20178,401 202 227 605 3,231 24,946 6,382 43,994
Additions during the year8115310994331,9086,1899,197
Disposals during the year(131)(62)(78)(60)(28)(2)(361)
Foreign exchange movements2247360296385501,025
Cost at 31 March 201819,247 170 291 699 3,74027,431 2,243 53,821
Additions during the period5074899137521,5711,9764,390
Acquired through business combination2,3192021,7904,131
Disposals during the period(87)(87)
Foreign exchange movements(186)(2)(6)(31)(168)(273)(61)(727)
Cost at 30 September 201822,147 236 384 807 5,332 28,729 3,893 61,528
Depreciation at 1 April 20172,963 119 139 283 345 978 604 5,431
Charge for the year1,82621791141526702,862
Disposals during the year(91)(62)(78)(34)(1)(266)
Foreign exchange movements1005424271260
Depreciation at 31 March 20184,798 83 140 405 538 1,719 604 8,287
Charge for the year1,532164228764142,108
Disposals during the period
Foreign exchange movements(98)(2)(3)(26)(54)(31)(214)
Depreciation at 30 September 20186,232 97 179 407 560 2,102 604 10,181
Net book value at 31 March 20175,438 83 88 322 2,886 23,968 5,778 38,563
Net book value at 30 September 20176,049541702413,26824,5189,62943.929
Net book value at 31 March 201814,449 87 151 294 3,202 25,712 1,639 45,534
Net book value at 30 September 201815,915 139 205 400 4,772 26,627 3,289 51,347

5 Inventory

Sep 2018Mar 2018Sep 2017
Minerals held for sale1,9081,4841,029
Production stockpiles1,4131,425946
Consumable stores2,2151,145831

6 Receivables

Sep 2018Mar 2018Sep 2017
Trade receivables35594384
Other receivables2,3921,145520
Short term loans789526

7 Loans and borrowings

Sep 2018Mar 2018Sep 2017
Non current
Secured borrowings9,2868,14920,757
Unsecured borrowings14,83814,838
less amounts payable in less than 12 months(351)(352)(1,698)
Secured borrowings3,451
Unsecured borrowings4,8132,6641,253
Bank overdrafts2,2911,3155,023
Current portion of long term borrowings3513521,698
Total loans and borrowings34,67926,96627,033

8 Payables

Sep 2018Mar 2018Sep 2017
Trade payables5,3084,7535,377
Other payables1,8367691,250
Other taxes and social security taxes530478160
Accrued expenses1079193

9 Provisions

Sep 2018Mar 2018Sep 2017
Provision for rehabilitation of mining properties
– Provision brought forward from previous periods1,3971,0951,095
– Liability recognised during period1,06830245

10 Goodwill on consolidation of subsidiary

On 20th April 2018 the Company announced the acquisition, through its subsidiary Dallaglio Investments (Private) Limited, of the entire issued share capital of Delta Gold (Private) limited, which is the owner and operator of the Eureka Gold Mine in northern Zimbabwe. The Companys effective share of ownership is 25.05%. The principal reason for this acquisition was to expand the Groups mining operations.

Details of the provisional fair value of identifiable assets and liabilities acquired, purchase consideration and gain arising are as follows:

Fair value
Property, plant and equipment4,131
Cash and cash equivalents5
Less: Payables(1,913)
Net assets2,223
Fair value of consideration paid – Cash4,485
Goodwill on acquisition2,262
Less attributable to Non-controlling Interests(1,695)

11 Events after the reporting date
Baita Plai licence
Commercial contract signed between the Companys 80% owned subsidiary, African Consolidated Resources SRL and Baita SA giving the Company the right to mine at the Baita Plai Polymetallic Mine.

Shares issued

DateNo of SharesGross before costs – Gross before costs – $Reason for issue
8-Oct-1813,9207092Exercise of warrants
16-Oct-1857,331287372Exercise of warrants
18-Oct-1870,847,785425,086552,612Placing to investors
18-Oct-1816,666,666100,000130,000Subscription by directors
2-Nov-18188,679,2451,000,0001,300,000Placing to investors
5-Dec-18153,810769980Exercise of warrants
7-Dec-18576,8352,8843,676Exercise of warrants
19-Dec-1868,000,00068,00086,098Bergen transaction