ENP Newswire -
Release date- 01072014 -
Bankable Feasibility Study and maiden JORC reserve statement published on
7 mtpa full year production of 58% fines
Total capital cost of
Free on Board ('FOB') cost of
Appointment of Investec as joint and subsequently sole broker
Appointment of Macquarie as adviser on funding and strategic options for Phase 1 of the
Publication of the Forecariah JV ('FJV') maiden JORC resource statement
Post Period End
Share placing with
Cash as at
In 2013 the Bankable Feasibility Study and maiden JORC reserve statement were released for our flagship Kalia project. The study, compiled by leading international independent third party consultants, validated our long held belief that the project has robust economics, even in a low iron ore price environment. The Board believe that the capital and operating costs identified in the study justify advancing the construction of the project's first phase.
In addition, the project's strategic location between Simandou and the coast would allow Bellzone to take advantage of the investment framework agreement made between the Government of
Following the completion of the BFS, the Company has focused on securing funding for the Kalia project. Although we have not been immune to the delays in funding that have been seen across the iron ore sector this year, where prices have been under downward pressure, I am very pleased with the progress we have made with regards to funding Kalia. Provided that full funding is secured during 2014, we remain confident of iron ore exports in 2016.
A key metric of the Company's success in host communities is its reporting on safety, health and environmental performance. Bellzone had no lost time injuries during the year indicating that the training and supervision practices of the Company with respect to the local employees and small number of expatriate staff was excellent. This is noteworthy given the inherent risks involved in operating drill rigs in rugged remote locations to provide outcomes to international standards.
We remain confident in the quality and potential of Kalia as a key resource globally, and will continue to build on the progress made to date.'
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The year in review to
Over the past year, led by our Chief Executive Officer
release of the Kalia independent BFS;
publication of the FJV maiden JORC statement;
recalibrated market expectations for the Forecariah JV operation;
release of the Kalia maiden JORC reserve statement;
appointment of Investec as joint and subsequently sole broker and
appointment of Macquarie as adviser on funding and strategic options for Phase 1 of the
Some of Bellzone's shareholders reacted negatively to the publication of the FJV production and shipping update. We saw this as a recalibration of market expectations. When Forecariah was invested in and built, the global economy was in a very different state. Changes have impacted on what Bellzone believes Forecariah can deliver, and under our responsibility to shareholders, the Company took the view that, even though the news would likely not be well received, it had a duty to tell shareholders. We will continue this undertaking in all our communications.
With regards to the Board, during 2013,
He remains a respected major shareholder and we wish Nik all the very best for his future endeavours. We are committed to establishing a greater balance of Non-Executive Directors to complement the great work and commitment of the current Non-Executive Director
Bellzone remains committed to ongoing engagement with all its stakeholders, including its shareholders, and will continue to engage with them via transparent and detailed market communications.
Our major focus remains Kalia. Bellzone is not distancing itself from its investment as a shareholder in Forecariah but the Company has made no secret of the fact that the real value proposition for Bellzone shareholders lies in Kalia.
Our relationship with the Government of
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED
The consolidated financial statements of
The nature of the principal activities of the Group is described in the Directors' Report. The principal accounting policies adopted in the preparation of these financial statements are set out below. These policies have been consistently applied unless otherwise stated.
BASIS OF PREPARATION
Statement of compliance
The financial statements have been prepared in accordance with International Financial Reporting Standards ('IFRS') as adopted for use in the
Early adoption of standards
The Group has not early adopted any other standard, interpretation or amendment that has been issued but is not yet effective.
Basis of measurement
The financial statements have been prepared on the historical cost basis except where indicated otherwise in the notes to the financial statements.
Functional and presentation currency
The functional currency of the Company and all of its subsidiaries is the United States Dollar ('US Dollar'), which is the currency of the primary economic environment in which the entities operate. All amounts are expressed in US Dollar and all values are rounded to the nearest thousand (
The audited results for the year reflect the current nature of the Group's activities being mineral exploration and project development.
The current nature of the Group's activities does not provide the Group with production or trading revenues. The cash available will see activities through to
The Group has historically met its working capital requirements by raising the required capital through the placing of shares with investors. The Company has raised
The proceeds of the Placing have provided sufficient funds for Bellzone to continue operations until
Should the completion of the Kalia funding process extend beyond
the placement of further securities;
loan funds secured against assets of the Group;
the sale of assets and/or
funding in exchange for an interest in the Group's projects or future production from the projects.
While the Directors believe that the Group will obtain sufficient funding from one or more of these funding opportunities, the Directors have concluded that the lack of committed funds represent a material uncertainty that may cast significant doubt upon the Company's ability to continue as a going concern, and therefore the Group and Company may be unable to realise its assets and discharge its liabilities in the normal course of business. The financial statements do not include the adjustments that would result if the company was unable to continue as a going concern.
The Directors have concluded that the lack of committed funds represent a material uncertainty that casts significant doubt upon the Company's ability to continue as a going concern and therefore the Group and Company may be unable to realise its assets and discharge its liabilities in the normal course of business.
Nevertheless, after considering the uncertainties mentioned above, and based on the progress of discussions with various potential sources of finance, the Directors have a reasonable expectation that the Group will be able to obtain additional funding which will provide the Group with sufficient resources to continue in operational existence for the foreseeable future. For these reasons, they continue to adopt the going concern basis of accounting in preparing the Consolidated Financial Statements.
The Company is a no par value company. No share issued by the Company shall have a par value.
There is no limit on the number of shares which may be issued by the Company and if the share capital structure of the Company is at any time divided into separate classes of share there is no limit on the number of shares of any class which may be issued by the Company.
The Company may, pursuant to the Companies Law, issue fractions of shares and any such fractional shares shall rank pari passu in all respects with other shares of the same class issued by the Company.
The Company shall maintain a stated capital account in accordance with the Companies Law for each class of issued share. A stated capital account may be expressed in any currency determined by the Board from time to time.
Ordinary shares have no par value, carry one vote per share and carry the right to dividends. All shares have been fully paid. Refer to note 6b(ii) below for details of treasury shares and own shares held.
The Group is in a project development stage and did not declare or pay any dividends during the year (2012: nil).
EVENTS OCCURRING AFTER THE REPORTING PERIOD
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