Leyshon Resources (LRL) plans to separate its energy and mining exploration businesses into two separate listed entities. The company will spin out its energy assets - including the flagship Zijinshan unconventional gas project in China - into a new vehicle, named Leyshon Energy, with its shares to be listed in both Australia and London. The new company will hold roughly $35m (£22m) in cash and will have a new set of directors, including former BP executive John Manzoni as non-executive chairman and ex-BG man Kim Howell as non-executive director. Paul Atherley will remain managing director of both companies.
Leyshon Resources, meanwhile, will hold onto the Mount Leyshon gold project, also in China, along with $3m in cash. There, Mr Atherley will aim to repeat the company's past successes in exploring for gold and other minerals in China - management says the company will be looking to take advantage of the currently depressed asset values in the minerals sector with a view to collaboration with Chinese and other buyers. Leyshon Energy will also be on the hunt for new acquisitions.
Initial results from the third exploration well at the Zijinshan project are expected within the next month or so. Encouragingly, Leyshon says the well "is now undergoing testing".
LEYSHON RESOURCES (LRL) | ||||
|---|---|---|---|---|
| ORD PRICE: | 10.1p | MARKET VALUE: | £25.2m | |
| TOUCH: | 10-10.3p | 12-MONTH HIGH: | 28p | LOW: 8.3p |
| DIVIDEND YIELD: | nil | PE RATIO: | na | |
| NET ASSET VALUE: | 15¢ | NET CASH: | $40.1m | |
| Half-year to 30 Jun | Finance income ($m) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (¢) |
|---|---|---|---|---|
| 2012 | 1.53 | -0.14 | -0.10 | nil |
| 2013 | 0.74 | -4.77 | -1.9 | nil |
| % change | -52 | - | - | - |
£1=$1.59 | ||||
