AOR
28/11/2014 12:46
HALFYR
PRICE SENSITIVE
REL: 1246 HRS Aorere Resources Limited
HALFYR: AOR: Results to the market for 6 months to 30 September 2014
Results for announcement to the market for 6 months to 30 September 2014
Financial Results
Your directors submit the unaudited financial statements of Aorere Resources
Limited for the six months to 30 September 2014. The trading result for the
period was a loss of $203,000 (2013 $81,000 loss).
Operations Report
Aorere is starting to show the results of its new lease of life, with a year
of positive milestones.
Firstly, thank you to all shareholders who subscribed to our share purchase
plan which raised $659,000. Most of the proceeds have been invested in an
increased (8.9%) shareholding in Chatham Rock Phosphate (CRP), currently
worth about $2.5 million: an investment we continue to consider highly
strategic.
The past 12 months have been transformational with some long term
investments. We have also made some initial forays into new investments
offering significant promise.
Chatham Rock Phosphate
CRP has now completed the formal marine consent hearings, subject to any
final requests for information from the Decision Making Committee. The
Committee is focusing particularly on CRP's proposed draft conditions and the
company is still hoping for a decision before Christmas.
CRP has made a strong case with its key messages being:
- the proposal involves very limited environmental risks in a small area;
- there are economic, strategic and environmental benefits;
- it will not harm any other industry or resource user in New Zealand's
economy
- the few material environmental risks can be managed by conditions;
- the proposed impact is miniscule compared with fishing, which should be
taken into account in considering the application
- the models are based on significant data which will be further validated;
and
- Benthic Protected Areas should be replaced by more refined protected areas.
In summary, the project offers new environmental benefits for New Zealand's
farming industry, by using a low cadmium, low carbon footprint, low run-off,
organic product. It will create a new industry with strong ties to
agrticulture - New Zealand's most important export earner. CRP's product
will enhance security of supply and reduce exposure to political risk to New
Zealand's biggest industry.
CRP has raised more than $6 million since August, a total of more than $33
million over the past four years, and is still looking to list its shares on
an international market in 2015.
Mosman Oil and Gas
We currrently hold an 11.3% shareholding in Mosman, the Perth-based London
AIM-listed company. We acquired this shareholding (worth about $4.4 million
at current prices, and acquired for $1.2 million) in exchange for our West
Coast Kotuku oil seeps prospect. Mosman has been evaluating the results of
three wells it has drilled, comissioned seismic tests over the area and
applied for four new New Zealand permits including acreage adjacent to
existing permits.
Mosman has purchased additional assets including Trident Energy, which holds
three offshore and onshore Australian oil interests.
The company has had an active year. Its share price has fluctuated
dramatically on extremely high daily volumes at times. This has been partly
influenced by an active investor programme in London and reactions to regular
announcements about its activities.
Currently, Mosman has a total of seven permits or accepted permit
applications in New Zealand and Australia. In addition, four new
applications have been made in New Zealand as part of the recent 2014 Block
Offer.
Petroleum Creek Project, New Zealand - The Petroleum Creek Project is a 143.6
km2 low cost onshore exploration project located near Greymouth in the South
Island, in the southern extension of the proven Taranaki oil system. The
project has a Mean Unrisked Recoverable Prospective Resource of 26.6 million
barrels. In the first month of drilling, oil was discovered at Cross Roads-1
well which declared an oil discovery in June 2014 and at Crestal-1 which
declared an oil discovery in July 2014. The current focus is on the
appraisal of existing discoveries and additional exploration.
Officer Basin Project, Australia (Application) - Mosman has a 25% investment
in the Officer Basin Project, a 22,527 km2 large land holding with
significant exploration potential, which lies in one of the more explored
parts of the Basin with road access. The project area is in the Western
Australian part of the Officer Basin and offers both conventional and
unconventional potential with hydrocarbon shows reported and all elements of
a petroleum system are present.
Amadeus Basin Projects, Australia - Mosman owns two granted Permits and one
application in the Amadeus Basin in Central Australia which total of 5,458
km2. The Amadeus Basin is considered one of the most prospective onshore
areas in the Northern Territory of Australia for both conventional and
unconventional oil and gas, and hosts the producing Mereenie, Palm Valley and
Surprise fields.
Otway Basin Project, Australia - Mosman owns 30% of VIC/P62 in the Otway
Basin. The permit was recently renewed and is in relatively shallow water.
The 70% permit holder funded a 3D seismic survey in 2013. Within the Otway
Basin there is commercial production both onshore and offshore.
Asian Mineral Resources
Our investment in Asian Mineral Resources (AMR) dates back to 2000. While it
has had its ups and downs, it was encouraging, on a visit to Vietnam in
October, to see the fruits of the company's long-term plan to become a nickel
producer.
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.
AMR has recently appointed a new operations manager and also upgraded its
website at www.asianmineralres.com. It is developing a smelter project that
will enhance the project's economics and reduce the tariffs required by the
Vietnamese government.
King Solomon Mines (KSO)
KSO continues to assess a number of mineral opportunities as potential
acquisitions and recently announced the appointment of Simon O'Loughlin and
Simon Taylor to the Board. It also announced the resignation of Fu La.
On 16 October 2014, KSO announced the sale of two exploration licences
containing the Naogaoshandu and Marmot projects. The exploration licences
were transferred to a creditor as settlement of 301,000 RMB ($56,000 at the
prevailing exchange rate) in outstanding debts.
More recently, KSO announced a renounceable rights issue at $0.002 per share,
underwritten by Taylor Collison Limited, which will raise up to A$919,188
before costs. Aorere Resources has been significantly diluted by recent share
issues but is still represented on the Board by Chris Castle.
Akura
Akura holds certain oil and gas leases in Fiji that are presently in the
process of being renegotiated. Not a lot more can be revealed at present.
Aorere holds 7.5% of Akura and has Board representation.
The Future
Over recent months we have built a platform of future prospects for our
portfolio of investments. We are encouraged by CRP's marine consent process
and by the activity generated by Mosman. Both companies will potentially
experience exciting developments over the next few months.
It is highly gratifying to see AMR finally earning profits, with dividends a
possibility at some stage. KSM is showing some hopeful future signs and
Akura also holds promise.
We remain positive about future prospects for all of our current investments.
In addition we are continuing to investigate other New Zealand-based
minerals projects which offer great promise.
Chris Castle
Managing director
Dene Biddlecombe Chairman
End CA:00258245 For:AOR Type:HALFYR Time:2014-11-28 12:46:30
