Widespread Portfolios Final Announcement for year to 31 March 2010
WIDESPREAD PORTFOLIOS LIMITED
Final Announcement for the year to 31 March 2010
Financial Summary
For most of the year to 31 March 2010 your company quietly soldiered on after the carnage of 2008/9 – and later in the year there were promising signs of a more positive operating environment.
And as finance and property development companies (and even sovereign states) continued to struggle around us we can take great comfort from our “no borrowings” policy.
However, apart from our associate company, Widespread Energy, which had quite an active year that saw its market capitalisation double, most of our portfolio was in a walking-wounded state. While all remained viable going concerns, Asian Minerals, Glass Earth, King Solomon Mines and Golden Phoenix all by necessity curtailed their activity levels to a varying extent.
On the plus side there were a number of milestones achieved by group companies.
- In January 2010 Asian Minerals raised CAD5.5 million at 10 cents a share. Combined with rising nickel prices this financing ensured the continuation of the company, which is now “un-mothballing”, the Ban Phuc nickel project. It is now viable even if the 20% export tariff remains in place.
- KSO had an active field season in Inner Mongolia with promising drilling results achieved at Bu Dun Hua.
- USA listed Fischer-Watt Gold raised cash and performed particularly well for us in market terms (up 117% for the twelve months)
- Glass Earth Gold has commenced alluvial gold mining in central Otago and also successfully raised more funds overseas.
However, the shining star in the portfolio has been Widespread Energy (WEN).
During the year WEN achieved the following milestones:
- The granting of the Chatham Rise prospecting licence on 25 February after a 30 month gestation period
- The immediate commencement of the year-one work programme including the establishment of a Wellington based project headquarters
- Drilling of an exploration bore at Kotuku (near Lake Brunner) as part of the stage two work programme for PEP 38526
- The granting of three petroleum exploration licences to Fiji based Akura Limited
- The raising of nearly $400,000 by means of private placements in February and March and a similar amount by means of a share purchase plan immediately after year-end.
WEN now has considerable momentum and with approximately $850,000 in cash is well enough funded to materially progress several of its projects in the 2011 year.
Operating Result for the year
The after tax operating result, including unrealised losses on the share-trading portfolio and other non-cash provisions, was a loss of NZD 336,000 (2009, loss of NZD 6,659,000). An analysis of the trading result is provided in the table below
|
|
Year to 31 March 10 ($,000) |
Year to 31 March 09 ($,000) |
|
Gains on the sale of shares |
66 |
|
|
Other income |
150 |
216 |
|
Total Income |
216 |
216 |
|
Loss on the sale of shares |
- |
(200) |
|
Unrealised gains (losses) on trading stock |
(65) |
11 |
|
Operating expenses |
(441) |
(600) |
|
Impairment on investments |
- |
(6,008) |
|
Share of Widespread Energy loss |
(44) |
(193) |
|
Net profit before income tax |
(334) |
(6,774) |
|
Income tax |
(2) |
115 |
|
Net profit (loss) after tax |
(336) |
(6,659) |
Disregarding unrealised losses and non-cash provisions, the operating outcome for the year was a pre-tax loss of NZD 269,000 (2009 loss of NZD 776,000)
Review of major investments
Our major investments are detailed in the table below on the basis of their market values as at the date of this report (excluding Asian Minerals and our share of the Chatham Rise Joint Venture which are based on the independent valuations referred to below).
|
|
|
May 2009 |
|
|
May 2010 |
|
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|
Investment |
Market Value ($m) |
% of portfolio |
c/share |
Market Value |
% of portfolio |
c/share |
|||||||||||||||
|
Asian Minerals* |
4.764 |
62.4% |
22.2 |
2.756 |
23.7% |
11.7 |
|||||||||||||||
|
King Solomon |
0.999 |
13.1% |
4.7 |
0.738 |
6.4% |
3.1 |
|||||||||||||||
|
Widespread Energy |
0.528 |
6.9% |
2.5 |
0.845 |
7.3% |
3.6 |
|||||||||||||||
|
Golden Phoenix |
0.361 |
4.7% |
1.7 |
0.356 |
3.1% |
1.5 |
|||||||||||||||
|
Other strategic holdings |
0.303 |
4.0% |
1.4 |
0.418 |
3.6% |
1.8 |
|||||||||||||||
|
Share trading portfolio |
0.215 |
2.8% |
1.0 |
0.201 |
1.7% |
0.9 |
|||||||||||||||
|
Cash |
0.462 |
6.1% |
2.2 |
0.452 |
3.9% |
1.9 |
|||||||||||||||
|
Chatham Rise (10% direct)* |
|
|
|
2.090 |
18.0% |
8.9 |
|||||||||||||||
|
Chatham Rise (18% indirect)* |
|
|
|
3.755 |
32.3% |
16.0 |
|||||||||||||||
|
|
Security Number on issue Market price (cents) Market Value ($M) Net assets ($M) Ordinary shares 23,490,449 16.0 3.758 12.8* 70.7% Listed warrants 8,505,123 0.8 .068 * Our ASN shareholding is now held for NTA disclosure purposes at a valuation of CAD 1.914 million based on our share of net assets. NTA per WID share valuing ASN at the current spot market price is 46.8 cents. NTA per share valuing all listed assets at spot market prices is 22.7 cents. » RSS Feed May 18, '12 - Widespread Portfolios advises Kotuku oil exploration initiative May 03, '12 - Widespread's Asian Minerals advises board changes Apr 20, '12 - Widespread’s Asian Minerals advises successful Pala agreement » RSS Feed May 18, '12 - Key stats as at 18 May Aug 08, '11 - WID 2011 AGM Presentation Jun 30, '11 - Annual Report - Directors Review |
