Gross turnover was US$21.3 million (2012 US$0.99 million) and, following the start up and sale of concentrate in April 2013, 2 228 tonnes of Nickel in concentrate have been sold during the period.

The corporation reported a profit attributable to ordinary shareholders of US$3.3 million (2012: loss of US$7.9 million). Operating costs amounting to US$3.4 million were capitalised for the six months to September 2013.

Non-current assets increased year on year to US$47.5 million (2012 US$35.4 million). The increase is as a result of the capitalisation of operating expenditure as well as costs associated with the refurbishment of the milling section at Trojan Mine. Current assets have decreased mainly due to a reduction in cash on hand and cash equivalents. Inventories and debtors have increased by US$1.6 million and US$5.8 million respectively as operations have ramped up. Current liabilities have remained in line year on year.

The long term liabilities increased to US$19.5 million (2012 US$18.9 million) due to the capitalisation of interest in respect of the shareholders’ loan.

The net cash position of the corporation reduced significantly in comparison to the prior period. Inflows were offset by the increase in working capital, primarily debtors and creditors as well as capital expenditure. Of the US$4.5 million facility mentioned above, US$1 million has been utilised as bridging finance. Based on our cash flow projections, it is not envisaged that any further funding will be required from this facility if nickel prices stay at around the current levels (US$13 580 per tonne).

The corporation has implemented the new mining plan for Trojan Mine, the result being that the company is achieving high levels of nickel output since implementation, thus establishing a record for Trojan Mine in September 2013 when 993 tonnes of nickel in concentrate were produced.

Source: Financial Statement