AOR 0.00% 0.0¢ aorere resources limited

Ann: HALFYR: AOR: Results for 6 months to September 30 2015

  1. lightbulb Created with Sketch. 2
    • Release Date: 27/11/15 08:30
    • Summary: HALFYR: AOR: Results for 6 months to September 30 2015
    • Price Sensitive: No
    • Download Document  7.23KB
    					AOR
    27/11/2015 08:30
    HALFYR
    PRICE SENSITIVE
    REL: 0830 HRS Aorere Resources Limited
    
    HALFYR: AOR: Results for 6 months to September 30 2015
    
    Results for announcement to the market for 6 months to September 30 2015
    
    Financial results
    
    Your directors submit the unaudited financial statements of Aorere Resources
    Limited for the six months to 30 September 2015. The trading result for the
    period was a loss of $149,000 (2014 - $203,000 loss).
    
    Operations Report
    
    Operations Report
    
    As at 25 November 2015, our portfolio comprised the following investments
    
    [see attached table]
    
    Mosman Oil and Gas
    
    In late 2013 Aorere converted a 100% interest in onshore West Coast oil
    prospect (Petroleum Creek) into approximately 10% of AIM listed Mosman Oil
    and Gas Limited, which now holds the oil interest.  We now hold an 2.1%
    shareholding in Mosman with a present market value of $310k at 3.5p. We are
    very excited about the progress Mosman has made in the 18 months since
    listing on AIM.
    
    Chatham Rock Phosphate
    
    Chatham Rock Phosphate (CRP) is the investment that we are most involved with
    operationally even though it presently represents only 23.5% of our assets.
    After taking up our full entitlement in the recent rights issue we are now
    the largest individual shareholder in CRP with 9.1%.
    
    CRP holds a granted mining licence on the Chatham Rise and is pursuing five
    exploration licences offshore Namibia, first applied for in mid-2012.
    
    In early 2015 CRP's marine (environmental) consent application was declined
    and CRP's board has spent the past eight months evaluating the decision to
    determine the most appropriate path forward. CRP has dramatically scaled down
    operations until such time as a resubmission of the marine consent
    application is deemed appropriate.
    
    Regardless of the future of CRP's Chatham Rise project, the CRP board has
    determined the company will evolve from its single project focus into a more
    diversified company, principally involving other phosphate projects, both on
    and offshore.
    
    Accordingly, due diligence has been undertaken in respect of a number of
    phosphate assets based both on and offshore in Australasia, North Africa,
    Southern Africa, Canada, USA and South East Asia. They range from green-field
    exploration projects, to those in development and near-to-production. Other
    marine mining opportunities involving other commodities will also be
    evaluated by the CRP team.
    
    The main drivers for this evolution in the CRP business strategy is not only
    the desire to reduce investor risk, but also to take advantage of (and
    therefore retain) the significant institutional knowledge and expertise
    within the Chatham management team and partner organisations. This knowledge
    spans marine and environmental science, the development of offshore mining
    projects, and extensive knowledge of the phosphate market, both locally and
    internationally.
    
    Chatham directors consider (and we concur) that the company's ability to
    finance the eventual resubmission of the marine consent application will be
    enhanced if both existing CRP shareholders and potential new investors don't
    face the same binary EPA-decision risk as in the past.
    
    Asian Mineral Resources
    
    Our investment in Asian Mineral Resources (AMR) dates back to 2000.
    
    AMR is TSX.V listed, is profitable, employs over 500 people and is said to be
    the largest tax payer in Hanoi. It has come a long way from being effectively
    a privately owned exploration company with little cash and few prospects of
    finding any. Aorere was the catalyst that made the difference, funding the
    company for several years, introducing substantial investors, and arranging
    the TSX.V listing.
    
    AMR is one of the few new sources of nickel sulphide supply globally and is
    now developing what it calls a new nickel district in Vietnam. After starting
    commercial production from its Ban Phuc nickel mine and processing facility
    in mid-2013 it is now achieving annual production of more than 6,400 tonnes
    of nickel and 3,200 tonnes of copper concentrate, plus a cobalt by-product.
    The cash flow from Ban Phuc production is allowing AMR to develop further
    nickel deposits in the same area. The company has a number of mine expansion
    projects, as well as several advanced-stage exploration targets within
    trucking distance of the processing facility.
    
    Recently AMR reported ongoing strong operational performance and encouraging
    exploration results at the nearby Kingsnake Exploration Prospect
    
    Other highlights of their nine month report to 30 September 2015 included
    
    - Above-guidance Q3 production:
    - 2,629 tonnes of nickel milled production;
    - 1,109 tonnes of copper milled production; and
    - 14,050 tonnes dry concentrate sold.
    - Mill recoveries exceed targets at 87.7% nickel and 95.3% copper.
    - Unit operating costs below-guidance at US$ 3.49/lb Ni, including royalties
    and export taxes.
    - Full repayment of the outstanding term loan facility of US$12 million and
    repayment of US$2.7 million working capital facility.
    - 1.2km mineralized zone identified at the Kingsnake prospect;
    Electromagnetic ("EM") conductors identified at depth.
    - Concentrate sales lower than forecast due to delays associated with
    shipping to Tianjin port.
    
    Commenting on Asian Mineral Resources' Q3 performance and exploration
    progress, CEO, Evan Spencer, said:
    
    "AMR's strong operational performance has continued to underpin the business
    during this extended low-pricing cycle. As notified to the market on 30th
    September 2015, sustained strong operational performance combined with our
    ongoing stated objective to reduce costs enabled Ban Phuc Nickel Mines, AMR's
    Vietnamese subsidiary, to pay down US$14.7 million in debt during the
    quarter. The subsequent temporary delay in BPNM's nickel concentrate
    shipments to Tianjin port has not impacted the operation. Shipments have
    re-commenced and we expect to return to our normal shipping schedule over the
    coming months. The short-term bridge facility provided by our major
    shareholder, Pala Investments, has enabled us to work though this delay in
    shipping in a controlled fashion.
    
    Exploration at our high priority Kingsnake prospect has provided exciting
    results. The structural re-interpretation combined with field mapping,
    geochemical sampling and surface EM work undertaken during Q3 has identified
    the potential for a mineralized system up to 1.2 km in length at Kingsnake.
    The presence of a number of EM conductors at depth has enable detailed drill
    targeting to begin. The confirmation of mineralization at Kingsnake is a
    significant discovery and provides the opportunity for AMR to access
    additional mineralization from the existing mine infrastructure should
    economic quantities of mineralization be confirmed."
    
    Akura
    
    Akura holds certain oil and gas leases in Fiji that are presently in the
    process of being renegotiated. Aorere holds 7.5% of Akura and has board
    representation.
    
    The Future
    
    We hold stakes in three companies that have significant forward momentum. In
    addition our balance sheet and cash position are both stronger due to the
    sell down of King Solomon Mines and part of our Mosman holding.
    
    We remain positive about future prospects for all of our current investments.
     In addition we are continuing to investigate other minerals projects which
    offer great promise.
    
    Chris Castle
    Managing director
    
    Dene Biddlecombe
    Chairman
    End CA:00274181 For:AOR    Type:HALFYR     Time:2015-11-27 08:30:46
    				
 
watchlist Created with Sketch. Add AOR (NZSX) to my watchlist

Currently unlisted public company.

arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.