TIDM1SN
RNS Number : 2803N
First Tin PLC
22 September 2023
22 September 2023
First Tin Plc
("First Tin" or "the Company")
Interim Results for the six months ended 30 June 2023
First Tin PLC, a tin development company with advanced, low
capex projects in Germany and Australia, today publishes its final
interim results for the six months ended 30 June 2023.
Highlights
-- Ended the period with a robust cash position of over GBP7.9m (30 June 2022: GBP18.8m)
-- Loss before tax of GBP2.3m (30 June 2022: GBP2.1m)
-- The fully funded DFS at Taronga, Australia continued at pace:
o Signed an agreement with BID Energy Partners to provide a
feasibility study on renewable energy supply options which has the
potential to materially reduce the power costs of the project,
supports permitting and is aligned with First Tin's desire to have
the highest ESG credentials for the benefit of all our
stakeholders
o Completed all confirmatory drilling and exploration work with
results from the programme confirming both the widths and grades of
mineralisation previously reported by Newmont between 1979 and 1982
and identifying an approximate 400m extension to the southwest
o Discovered the Tin Beetle prospect, with drilling confirming
mineralisation over the entire 2.3km tested and validating First
Tin's thesis that Taronga is part of a tin district rather than a
singular tin occurrence
o 100% owned Australia subsidiary - Taronga Mines Pty Ltd
("TMPL") applied for a large (276.6km2) Exploration Licence
covering the majority of the Tingha tin field, consolidating First
Tin's control of significant historical tin producing areas in
northeastern New South Wales (post period end)
o Crushing testwork results confirmed significant upgrading
effect for both high-grade and low-grade mineralisation at the
Taronga tin project (post-period end)
o Published an updated JORC compliant Mineral Resource Estimate
("MRE") which increased the size of the Taronga resource by over
240% to 133 million tonnes, demonstrating the true scale of the
Taronga asset (post-period end)
o Results from end-to-end mineral processing testwork identified
a simple and cost-effective processing option for the tin
mineralisation found at the asset (post-period end)
-- Continued to progress the Tellerhäuser project, Germany:
o Saxonian Mining Authority confirmed eligibility to move
straight to the construction and operational permitting process,
reducing the overall permitting timeframe by up to 12-18 months
o Submitted complete documentation for mine permit application
to the Saxonian Mining Authority with a decision expected prior to
the end of Q3 2024
o Continuing to expand the current JORC MRE by utilising the
recently uncovered historical Wismut drilling data alongside
additional drilling
Thomas Buenger, Chief Executive Officer, commented:
" First Tin has made strong progress during the period,
executing key workstreams and adding significant value at both its
flagship tin assets in Australia and German y. The management team
has focused on advancing both assets through their Definitive
Feasibility Studies, while extension development and exploration
drill programmes have produced excellent results.
"We remain well-positioned to complete both DFS studies at our
Taronga and Tellerhäuser assets, during Q1 2024 and Q3 2024,
respectively.
"Tin is fundamental in any plan to decarbonise and electrify the
world. At the same time, global tin supply is falling with 75% of
global tin production from non-Tier-One, non-OECD countries.
Therefore, it is vital that demand is met by companies which are
dedicated to supplying tin reliably and responsibly. First Tin
remains committed to bringing its assets into production at a
pivotal time and is poised to become a material future tin supplier
from its conflict-free and low political risk jurisdictions."
Analyst Presentation
There will be a Zoom webinar for equity analysts at 10:30am BST
today, hosted by Thomas Buenger, CEO and Charles Cannon-Brookes,
Non-Executive Chairman. Any analysts wishing to register for the
event should email firsttin@secnewgate.co.uk .
Investor Presentation Reminder
Additionally, Thomas Buenger, CEO and Tony Truelove, COO, will
provide a live presentation for investors via the Investor Meet
Company platform at 09:00am BST on Monday 25(th) September
2023.
The presentation is open to all existing and potential
shareholders. Questions can be submitted pre-event via the Investor
Meet Company dashboard up until 9:00am the day before the meeting
or at any time during the live presentation.
Investors can sign up to Investor Meet Company for free and
click "Add to Meet" First Tin via:
https://www.investormeetcompany.com/first-tin-plc/register-investor
Enquiries:
First Tin Via SEC Newgate
below
Thomas Buenger - Chief Executive
Officer
Arlington Group Asset Management
Limited (Financial Advisor and
Joint Broker)
Simon Catt 020 7389 5016
WH Ireland Limited (Joint Broker)
Harry Ansell 020 7220 1670
SEC Newgate (Financial Communications)
07900 248
Elisabeth Cowell / Molly Gretton 213
Notes to Editors
First Tin is an ethical, reliable, and sustainable tin
production company led by a team of renowned tin specialists. The
Company is focused on becoming a tin supplier in conflict-free, low
political risk jurisdictions through the rapid development of high
value, low capex tin assets in Germany and Australia.
Tin is a critical metal, vital in any plan to decarbonise and
electrify the world, yet Europe has very little supply. Rising
demand, together with shortages, is expected to lead tin to
experience sustained deficit markets for the foreseeable future.
Its assets have been de-risked significantly, with extensive work
undertaken to date.
First Tin's goal is to use best-in-class environmental standards
to bring two tin mines into production in three years, providing
provenance of supply to support the current global clean energy and
technological revolutions.
CHAIRMAN'S STATEMENT
FOR THE PERIODED 30 JUNE 2023
I am pleased to report that during the six months ended 30 June
2023, First Tin has achieved strong operational progress,
completing key workstreams at both of its flagship tin projects in
Australia and Germany. Despite persistent macroeconomic challenges
such as the ongoing war in Ukraine, increasing geopolitical
tensions and volatility of global stock exchanges, our teams in
Australia and Germany have worked diligently to add value and to
reduce risk at both our assets.
After a rollercoaster year in 2022 where the tin price hit
record high prices of c.US$50k per tonne in March and then hit a
two-year price low of c.US$17k in October, the period under review
has seen a much less volatile price range of between US$20k-US$30k.
This has been set against a market backdrop where falling global
supply has been more than countered by weak global demand.
On the supply side, material disruptions from a number of
leading tin-producing countries such as Bolivia, Peru, Indonesia,
China and Wa State, impacted the global tin market. Market
forecasts indicate that an excess of 10,000 tonnes could be removed
from the annual global tin supply in 2023 alone. Against such a
bearish supply picture, one would have expected to see a
significant increase in tin spot prices. However, this supply
weakness has been more than offset by a general drop-off in global
demand. This demand reduction has predominantly come from
traditional tin sectors such as tinplate and chemicals and from a
general drop in the demand for consumer electronics driven by low
global GDP growth forecasts and high interest rates which have
curtailed demand for luxury goods. While it is hard to accurately
forecast when aggregate tin demand will strengthen, tin is
experiencing strong levels of demand in some individual sectors
such as in solar ribbon and electric vehicles. The longer-term
picture for tin remains bright with material deficits still
forecast to start in 2026 exactly when First Tin intends to bring
its two flagship assets into production.
Tin remains a vital ingredient for global decarbonisation and is
a key component in the production of semiconductors, artificial
intelligence technology, electric vehicles, batteries, solar
panels, and renewable technology. The pressures facing companies to
decarbonise their supply chains mean that it is essential that this
demand is met by companies which are dedicated to supplying tin
reliably and responsibly. First Tin remains committed to bringing
its assets into production at a pivotal time and is poised to
become a material future tin supplier from its conflict-free and
low political risk jurisdictions.
During the period, the management team focused on advancing both
assets through their respective Definitive Feasibility Studies
("DFS"). We have made strong operational progress at our Taronga
asset, successfully completing all drilling and exploration work
and publishing an updated JORC compliant Mineral Resource Estimate
("MRE") which increased the size of the Taronga resource by over
240% to 133 million tonnes. This updated JORC MRE statement
demonstrates the true scale of our Taronga asset and I am pleased
to report that there remains plenty of scope to further increase
the size of total resource both from the Taronga asset itself and
from its satellite orebodies.
However, perhaps the most promising development at Taronga in
the interim period has been the results from the beneficiation and
processing work undertaken on high-grade and low-grade bulk
samples. This work showed that the high-grade bulk sample (0.18% Sn
head grade) was simply and cheaply upgraded to 0.63% Sn using only
a simple coarse crushing and screening technique followed by jigs
and spirals while the mass was reduced by 73% and 79% of the tin
content was retained. This low-cost and simple beneficiation
solution is a unique feature of the Taronga orebody corroborating
previous historical work undertaken by Newmont. Furthermore, the
estimated 73% reduction in the tonnage that needs to be processed
after the beneficiation process will have a material positive
impact on future capex and opex forecasts. The DFS at Taronga is on
track to be completed during Q1 2024.
At our Tellerhäuser asset, we have made solid progress in terms
of permitting the project, receiving confirmation that the mine
permit will go through a fast-track process. Work on the ground in
Germany and in relation to the ongoing DFS has been focussed on
permitting work, metallurgy, and processing, as well as on
expanding the current JORC MRE by utilising the recently uncovered
historical Wismut drilling data. We expect to be able to release an
updated MRE on both Hammerlein and Dreiberg deposits before the end
of the year, with the DFS forecast to be released in Q3 2024 and
the granting of the mining license shortly thereafter.
On behalf of the Board, I would like to thank the First Tin
management team and employees for their ongoing determination and
hard work, which has resulted in a series of significant
operational achievements during the period. I would also like to
thank all of our stakeholders for their continued support and
commitment. We look forward to the second half of 2023 with great
excitement as we continue to progress our flagship assets.
C Cannon Brookes
Chairman
CHIEF EXECUTIVE OFFICER'S REPORT
FOR THE PERIODED 30 JUNE 2023
First Tin has a clear ambition: to develop a sustainable,
reliable, conflict-free supply of tin which meets the stringent ESG
values that are increasingly driving the purchasing behaviour of
consumers globally, and therefore the businesses which serve
them.
With customers and brands alike scrutinising the provenance and
Scope 3 emissions associated with the materials and products they
purchase, there is a significantly growing demand for high-quality,
traceable, ESG-compliant sources of tin. These customers and brands
now expect to receive tin which has been produced in a way which
benefits the communities in which the mine is located, and which
upholds best-in-class health and safety practices.
This embodies First Tin's approach to mining and together our
assets represent the fifth largest undeveloped tin reserves
globally, outside of Russia, Kazakhstan, and the DRC. Our assets
are located in the low-risk, conflict-free jurisdictions of
Australia and Germany and their development is being led by a
management team with significant personal investment committed to
bringing them into production in an environmentally compliant
way.
Tin is a designated critical material due to its vital role in
decarbonising and electrifying the world. First Tin is positioned
to deliver its first production to coincide closely with a market
deficit which is forecast to start in 2026 and remain in deficit
for many years thereafter unless material new sources of tin supply
can be found.
Taronga - Australia
Taronga is located in New South Wales. It is a low-risk asset in
a low-risk jurisdiction. Acquired in 2022 by First Tin, it is
surrounded by excellent existing infrastructure and benefits from
over a century of development and abundant underexplored tin
showings, providing major exploration upside potential. Significant
exploration work was undertaken by BHP in 1933, 1958, and 1964, and
by the Newmont Joint Venture from 1979 to 1983.
Since our IPO in April 2022, we have been focused on drilling at
Taronga to confirm the historical data and extend the
mineralisation and I am pleased to say that we have been successful
on both fronts. As recently announced, the Company's JORC compliant
Mineral Resource Estimate ("MRE") increased by 240% to a new total
of
138,300 tonnes contained tin with significant potential for further increases.
The MRE was completed by independent geological consultants
H&S Consultants Pty Ltd and prepared in accordance with the
2012 JORC Code & Guidelines.
It was reported using a 0.05% tin ("Sn") cut-off to a maximum
depth of 300m below surface (650mRL):
Category Tonnage Grade (% Tin (Tonnes)
(Million) Sn)
Measured 33.0 0.13 44,200
------------ ---------- --------------
Indicated 38.9 0.11 42,000
------------ ---------- --------------
Sub-Total
(M&I) 71.9 0.12 86,200
------------ ---------- --------------
Inferred 61.1 0.09 61,100
------------ ---------- --------------
TOTAL 133.0 0.10 138,300
------------ ---------- --------------
(minor rounding errors)
Aus Tin Mining Ltd's previous MRE, reported in 2014, was
calculated using a 0.10% Sn cut-off. The lower cut-off for the
updated MRE is based on revised economic considerations including
higher 3-year trailing tin prices, lower AUD:USD exchange rates and
preliminary estimates of mining, processing and G&A costs.
When comparing the two Mineral Resources, we are pleased to see
that the updated MRE represents a 40% increase in total contained
tin metal based on the same cut-off. This has been successfully
delivered due to exploration drilling by First Tin extending the
Mineral Resource to the southwest of the existing estimate, a new
geological interpretation, and a reconfigured grade interpolation
technique.
We believe that Taronga should not be seen as a stand-alone
asset, but rather as the most developed asset in what is a tin
district. In May 2023, we were delighted to confirm our thesis
through the receipt of the first drill hole from our Tin Beetle
satellite prospect, 9km from the Taronga tin deposit. The first
hole returned 7 metres @ 0.63% Sn within a broader intersection of
48 metres @ 0.18% Sn from 2 metres depth. Tin Beetle is one of six
potential satellite deposits for Taronga, and we look forward to
initialising further exploration and drilling programmes in the
coming months.
The Company has also been focussing on advancing the mineral
processing work at Taronga in order to finalise its final flow
sheet and preferred processing route. As recently announced, crush,
jig and spiral test results confirmed the premise that the
cassiterite (SnO2 - tin ore mineral) is easily liberated at a
coarse crush size and that a good quality concentrate can be
obtained using very simple gravity separation techniques. Using
coarse gravity techniques only (i.e. no fine tin recovery) and a
processing route that consists only of crushing, jigs, spirals and
shaking tables, it has been demonstrated that 55% of the total tin
can be recovered into a 56% low impurity Sn concentrate.
Due to the simplicity of the coarse tin only circuit, this
processing flow sheet has now been chosen as the go-forward option
for the Definitive Feasibility Study ("DFS"), with the possible
additions of a fine tin recovery circuit and/or supplementary
crushing options being investigated as part of future optimisation
work to further increase recovery rates. Ongoing recovery studies
on lower grade samples are currently in progress, designed to
obtain a realistic grade-recovery curve for use in the DFS and will
be announced when received.
It is also worth noting that during the period, we partnered
with BID Energy Partners, an Australia-based energy company, to
provide a feasibility study on renewable energy supply options for
Taronga. This is a critical element for the Company's efforts to
minimise its carbon footprint and be energy efficient. Fortunately,
we are well placed to take advantage of renewable energy due to a
number of factors, including our freehold ownership over a
significant portion of land around the project which is sufficient
to develop significant solar and/or wind farms, with high-solar
capacity and good wind speed characteristics.
In summary, the material increase in the Taronga JORC MRE,
including the inclusion of a Measured Resource category for the
first time, alongside the validation of a low-cost and simple
beneficiation process, positions the Company well. We aim to
complete the DFS at this asset during Q1 2024.
Tellerhäuser - Germany
Our Tellerhäuser project is one of the world's most advanced tin
deposits. It is located in the tin district of Saxony, which
showcases an exceptionally long history of mining and has an active
Mining Licence for the extraction of mineral resources valid until
30 June 2070. A Scoping Study previously undertaken on Tellerhäuser
in 2021, showed positive overall economics for the project with a
very low up-front CAPEX number of US$49m. First Tin's current
efforts are to drive forward a DFS on the project with a targeted
completion date in H2 2024.
As part of this DFS effort, further deep drilling was completed
during the period in the Dreiberg target. We successfully
intersected high-grade tin mineralisation at depth and along strike
from the previous holes drilled by Wismut with each of the four
holes drilled. The results were highly encouraging, confirming the
skarn horizon is present, continuous and mineralised with
high-grade tin which corroborates the legacy Wismut drilling from
over 40 years ago.
We were also able to benefit from the ongoing data mining of a
considerable amount of historical drilling data for the
Tellerhäuser project area. Following granting of the Mining Licence
in 2021, Saxore was able to request additional historical data, in
particular drillholes targeting uranium mineralisation, that were
also assayed for tin and other metals. This data is currently being
added to the main database and should lead to additional resource
tonnes being added very cost effectively. We expect to publish an
updated JORC compliant MRE for Tellerhäuser during December
2023.
During the period, we also made positive progress in relation to
permitting. Having already received confirmation from the Saxonian
Mining Authority that the asset is eligible to move straight to the
construction and operational permitting process, we announced the
submission of the complete documentation for our mine permit
application in June 2023. The Company expects that a mining license
will be issued in Q3 2024 shortly after the release of the DFS.
Finance Review
Interim 2023 represents a period of investment by the Company as
it progresses both its flagship assets through permitting and their
respective DFS studies.
In respect of the financial results, First Tin posted a
comprehensive loss for the period of GBPGBP1.4m and ended the
period with a healthy cash position of GBPGBP8.0m and a net asset
value of GBPGBP39.5m.
Expenditure during the period was primarily focused on drilling
activities and other DFS related costs as well as on strategic
land, property, and machinery acquisitions.
Outlook
The work undertaken during the period has significantly
progressed the development of both of the Company's core assets and
has increased value. With the expected release of a DFS at our
Taronga asset due in Q1 2024, we are making positive strides
towards our 2026 production target and remain excited at the
momentum we are building.
I would like to thank our valued investors for their continued
support, and I look forward to reporting on our ongoing
progress.
T Buenger
Chief Executive Officer
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIODED 30 JUNE 2023
Period Period
Note to to
30 30
June June
2023 2022
(Unaudited) (Unaudited)
GBP GBP
Administrative expenses (1,462,689) (896,968)
IPO costs - (505,335)
Share based payments (non-cash) 6 - (707,100)
Operating loss (1,462,689) (2,109,403)
Finance income 48,886 -
Finance costs (23) -
Loss before tax (1,413,826) (2,109,403)
Income tax expense - -
Loss for the period (1,413,826) (2,109,403)
Other comprehensive (loss)/income
Exchange differences on translation
of foreign
operations (862,072) 51,628
Other comprehensive (loss)/income
for the
period (862,072) 51,628
Total comprehensive loss for
the period (2,275,898) (2,057,775)
Total comprehensive loss attributable
to
the equity holders of the company (2,275,898) (2,057,775)
Basic loss - pence per share 5 (0.53) (1.07)
Diluted loss - pence per share 5 (0.53) (1.07)
The Notes on pages 11 to 18 form an integral part of these
Condensed Consolidated Financial Statements.
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2023
Note 30 31
June December
2023 2022
(Unaudited) (Audited)
GBP GBP
Non-current assets
Intangible assets 7 30,132,339 27,367,552
Property, plant and equipment 8 2,319,561 1,589,748
32,451,900 28,957,300
Current assets
Trade and other receivables 9 429,289 808,711
Cash and cash equivalents 7,999,951 13,823,173
8,429,240 14,631,884
Current liabilities
Trade and other payables 10 (1,373,152) (1,805,298)
Net current assets 7,056,088 12,826,586
Total assets less current liabilities 39,507,988 41,783,886
Net assets 39,507,988 41,783,886
Capital and reserves
Called up share capital 12 265,535 265,535
Share premium account 18,391,046 18,391,046
Merger relief reserve 17,940,000 17,940,000
Warrant reserve 269,138 269,138
Retained earnings 3,473,768 4,887,594
Translation reserve (831,499) 30,573
Shareholders' funds 39,507,988 41,783,886
The Notes on pages 11 to 18 form an integral part of these
Condensed Consolidated Financial Statements.
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE PERIODED 30 JUNE 2023
Period to
Perio d
to
30 30
June June
2023 2022
(Unaudited) (Unaudited)
GBP GBP
Cash flows from operating activities
Operating loss for the period (1,462,689) (2,109,403)
Adjustments to reconcile loss
before tax to net cash flows:
Depreciation of tangible assets 33,725 8,702
Share-based payment expense - 707,100
Decrease in trade and other receivables 379,422 74,851
(Decrease)/increase in trade and
other payables (432,146) 86,031
Cash used in operations (1,481,688) (1,232,719)
Interest paid (23) -
Net cash flows used in operating
activities (1,481,711) (1,232,719)
Cash flows from investing activities
Purchase of intangible assets (3,542,389) (743,899)
Receipt of government grants 129,730 -
Purchase of property, plant and
equipment (884,608) (279,294)
Cash acquired on acquisition of
Taronga - 102
Interest received 48,886 -
Net cash flows used in investing
activities (4,248,381) (1,023,091)
Cash flows from financing activities
Issuance of shares (net of issuance
costs) - 18,631,479
Net cash flows generated from financing
activities - 18,631,479
Net (decrease)/increase in cash (5,730,092) 16,375,669
Cash and cash equivalents at beginning
of year 13,823,173 2,503,714
Exchange loss on cash and cash
equivalents (93,130) (32,225)
Cash at the end of period 7,999,951 18,847,158
The Notes on pages 11 to 18 form an integral part of these
Condensed Consolidated Financial Statements.
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE PERIODED 30 JUNE 2023
Merger
Share Share relief Warrant Retained Translation Total
capital premium reserve reserve earnings reserve equity
GBP GBP GBP GBP GBP GBP GBP
At 1 January
2022 265,535 18,391,046 17,940,000 269,138 4,887,594 30,573 41,783,886
Loss for the
period - - - - (1,413,826) - (1,413,826)
Other
comprehensive
loss for
the year - - - - - (862,072) (862,072)
Total
comprehensive
loss
for the year - - - - (1,413,826) (862,072) (2,275,898)
At 30 June 2023 265,535 18,391,046 17,940,000 269,138 3,473,768 (831,499) 39,507,988
The Notes on pages 11 to 18 form an integral part of these
Condensed Consolidated Financial Statements.
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE PERIODED 30 JUNE 2022
Merger
Share Share relief Warrant Retained Translation Total
capital premium reserve reserve earnings reserve equity
GBP GBP GBP GBP GBP GBP GBP
At 1 January
2022 138,868 17,931,296 - 95,372 (10,507,856) (88,364) 7,569,316
Loss for the
period - - - - (2,109,403) - (2,109,403)
Other
comprehensive
loss for
the year - - - - - 51,628 51,628
Total
comprehensive
loss
for the year - - - - (2,109,403) 51,628 (2,057,775)
Transactions
with
owners:
Capital
reduction - (17,931,296) - - 17,931,296 - -
Issuance of
shares
(net of
issuance
costs) 66,667 18,564,812 - - - - 18,631,479
Shares issued
to acquire
Taronga 60,000 - 17,940,000 - - - 18,000,000
Share-based
payments - (173,766) - 173,766 707,100 - 707,100
Total
transactions
with
owners 126,667 459,750 17,940,000 173,766 18,638,396 - 37,338,579
At 30 June 2022 265,535 18,391,046 17,940,000 269,138 6,021,137 (36,736) 42,850,120
The Notes on pages 11 to 18 form an integral part of these
Condensed Consolidated Financial Statements.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE PERIODED 30 JUNE 2023
1. General Information
The Company is a public company limited by shares, incorporated
in England and Wales under the Companies Act 2006. The Company's
registered address is First Floor, 47/48 Piccadilly, London,
W1J 0DT.
First Tin Plc ("the Company") and its subsidiaries own two advanced
tin projects, one in Germany and one in Australia, and is seeking
to bring both projects into production in order to be able to
deliver a sustainable answer to the material supply issues faced
by industrial tin consumers.
The condensed consolidated financial statements comprise financial
information of the Company and its subsidiaries (the "Group").
2. Significant accounting policies
2.1 Basis of preparation
The unaudited condensed consolidated financial statements for
the period ended 30 June 2023 have been prepared in accordance
with the Disclosure and Transparency Rules of the Financial
Conduct Authority and International Accounting Standard 34
"Interim Financial Reporting" (IAS 34). Other than as noted
below, the accounting policies applied by the Group in the
preparation of these condensed consolidated financial statements
are the same as those set out in the Group's audited financial
statements for the year ended 31 December 2022. These condensed
consolidated financial statements have been prepared under
the historical cost convention except for certain financial
and equity instruments that have been measured at fair value.
These condensed consolidated financial statements do not include
all of the information required for a complete set of IFRS
financial statements. However, selected explanatory notes are
included to explain events and transactions that are significant
to an understanding of the changes in the Group's financial
position and performance since the audited financial statements
for the year ended 31 December 2022.
Statutory accounts for the year ended 31 December 2022 have
been filed with the Registrar of Companies and the auditor's
report was unqualified, did not contain any statement under
Section 498(2) or 498(3) of the Companies Act 2006 and did
not contain any matters to which the auditors drew attention
without qualifying their report.
A number of amended standards became applicable for the current
reporting period. The Group did not have to change its accounting
policies or make retrospective adjustments as a result of adopting
these amended standards.
The condensed consolidated financial statements are unaudited
and were approved by the Board of Directors on 21 September
2023.
2. Significant accounting policies (continued)
2.2 Going concern
The Group currently has no income and meets its working capital
requirements through raising development finance. In common
with many businesses engaged in exploration and evaluation
activities prior to production and sale of minerals the Group
will require additional funds and/or funding facilities in
order to fully develop its business plan. Ultimately the viability
of the Group is dependent on future liquidity in the exploration
and study period and this, in turn, depends on the availability
of external funding.
During 2022 the Company's shares were admitted to trading on
the London Stock Exchange raising equity of GBP20 million.
At 30 June 2023, the Group had cash of GBP8.0 million (31 December
2022: GBP13.8 million).
The Directors have prepared financial projections and plans
for a period of at least 12 months from the date of approval
of these condensed consolidated financial statements. It is
anticipated that additional capital will need to be raised
by the end of the second quarter of 2024 in order to continue
to fund the Group's activities at their planned levels beyond
this date. This represents a material uncertainty that may
cast significant doubt the Group's ability to continue as a
going concern. However, the Directors have a reasonable expectation
that this uncertainty can be managed to a successful outcome,
and based on that assessment, the Group will have adequate
resources to continue in operational existence for the foreseeable
future. Accordingly, these condensed consolidated financial
statements have been prepared on the going concern basis.
The condensed consolidated financial statements do not reflect
any adjustments that would be required to be made if they were
to be prepared on a basis other than the going concern basis.
3. Critical accounting estimates and judgements
The preparation of the Group's condensed consolidated financial
statements requires the Directors to make estimates and assumptions
that affect the reported amounts of assets and liabilities and
the disclosure of contingent assets and liabilities. Estimates
and judgements are continually evaluated and are based on historical
experience and other factors including expectations of future
events that are believed to be reasonable under the circumstances.
Actual results may differ from these estimates. Critical judgements
and areas where the use of estimates is significant are set out
in the audited consolidated financial statements for the year
ended 31 December 2022.
4. Segmental reporting
In the opinion of the Board of Directors the Group has one operating
segment, being the exploitation of mineral rights.
The Group also analyses and measures its performance into geographic
regions, specifically Germany and Australia.
Non-current assets by region are summarised below:
30 31
June December
2023 2022
GBP GBP
Germany 7,607,921 6,824,224
Australia 24,843,979 22,133,076
32,451,900 28,957,300
5. Loss per Ordinary share
Period Period to
to
30 30
June June
2023 2022
GBP GBP
Loss for the period attributable
to the ordinary
equity holders of the Company (GBP) (1,413,826) (2,109,403)
Basic loss per Ordinary share
Weighted average number of Ordinary
shares
in issue 265,534,972 197,275,713
Basic loss per Ordinary share (pence) (0.53) (1.07)
Diluted loss per Ordinary share
Weighted average number of Ordinary
shares
in issue 265,534,972 197,734,041
Diluted loss per Ordinary share
(pence) (0.53) (1.07)
For diluted loss per share, the weighted average number of ordinary
shares in issue is adjusted to assume conversion of all potential
dilutive warrants and options over ordinary shares. Potential
ordinary shares resulting from the exercise of warrants and options
have an anti-dilutive effect due to the Group being in a loss
position. As a result, diluted loss per share is disclosed as
the same value as basic loss per share.
6. Share-based payments
Share options and warrants
The following table shows the movements in the share-based payment
reserve during the period:
No. of No. of No. of No. of
options options warrants warrants
at 30 at 31 at 30 at 31
June December June December
2023 2022 2023 2022
GBP GBP GBP GBP
Outstanding at beginning of
period 10,060,000 1,560,000 5,668,000 3,168,000
Granted during the period - 8,500,000 - 2,500,000
Expired during the period - - - -
Outstanding at the end of
the period 10,060,000 10,060,000 5,668,000 5,668,000
Exercisable at the end of
the period 10,060,000 10,060,000 5,668,000 5,668,000
Weighted average exercise
price (pence) 30 30 26 26
Impact on the statement of comprehensive income
Share options
The Group recognised a charge of GBPnil in profit or loss for
the six-month period ended 30 June 2023 (period ended 30 June
2022: GBP707,100). The expense is comprised of GBPnil (2022:
GBP582,317) relating to directors (see Note 11) and GBPnil (2022:
GBP124,783) relating to staff and consultants.
Share warrants
The Group recognised a charge of GBPnil in share premium for
the six-month period ended 30 June 2023 (period ended 30 June
2022: GBP173,766).
7. Intangible assets
Exploration
and
evaluation
assets
GBP
Cost
At 1 January 2021
Additions
Currency translation
At 31 December 2021
At 1 January 2022 3,380,913
Additions 5,288,557
Acquisition of Taronga 18,558,503
Currency translation 139,579
At 31 December 2022 27,367,552
Additions 3,542,389
Government grant (129,730)
Currency translation (647,872)
At 30 June 2023 30,132,339
The intangible assets relate to the Tellerhäuser and Taronga
tin projects located in southern Saxony in the east of Germany
and Australia, respectively.
The Directors assess for impairment when facts and circumstances
suggest that the carrying amount of an Exploration and evaluation
("E&E") asset may exceed its recoverable amount. In making this
assessment, the Directors have regard to the facts and circumstances
noted in IFRS 6 paragraph 20. In performing their assessment of
each of these factors, at 30 June 2023, the Directors have:
a) reviewed the time period that the Group has the right to explore
the area and noted no instances of expiration, or licences that
are expected to expire in the near future and not be renewed;
b) determined that further E&E expenditure is either budgeted
or planned for all licences;
c) not decided to discontinue exploration activity due to there
being a lack of quantifiable mineral resource; and
d) not identified any instances where sufficient data exists to
indicate that there are licences where the E&E spend is unlikely
to be recovered from successful development or sale.
On the basis of the above assessment, the Directors are not aware
of any facts or circumstances that would suggest the carrying
amount of the E&E asset may exceed its recoverable amount.
8. Property, plant and equipment
Land & Motor Fixtures
&
Buildings Vehicles Fittings Total
GBP GBP GBP GBP
Cost
At 1 January 2022 - 38,803 37,797 76,600
Additions 415,220 110,583 75,104 600,907
Acquisition of Taronga 965,939 - 34,202 1,000,141
Currency translation (21,179) 1,658 3,119 (16,402)
At 31 December 2022 1,359,980 151,044 150,222 1,661,246
Additions 839,761 18,801 26,046 884,608
Currency translation (108,645) (8,400) (6,884) (123,929)
At 30 June 2023 2,091,096 161,445 169,384 2,421,925
Depreciation
At 1 January 2022 - 17,567 30,182 47,749
Charge for year - 9,334 11,263 20,597
Currency translation - 1,160 1,992 3,152
At 31 December 2022 - 28,061 43,437 71,498
Charge for year - 21,950 11,775 33,725
Currency translation - (1,300) (1,559) (2,859)
At 30 June 2023 - 48,711 53,653 102,364
Net book value
At 30 June 2023 2,091,096 112,734 115,731 2,319,561
At 31 December 2022 1,359,980 122,983 106,785 1,589,748
9. Trade and other receivables
30 31
June December
2023 2022
GBP GBP
Prepayments and other receivables 303,176 386,287
Recoverable value added taxes 126,113 422,424
429,289 808,711
10. Trade and other payables
30 31
June December
2023 2022
GBP GBP
Trade payables 1,080,926 761,512
Accruals 260,864 949,004
Other payables 31,362 94,782
1,373,152 1,805,298
11. Related party transactions
Directors' remuneration and fees
The table below sets out the Directors' remuneration and fees:
Six months ended 30 June Share based
2023
Fees payments Total
GBP GBP GBP
Mr T Buenger 143,460 - 143,460
Mr C Cannon Brookes* 17,500 - 17,500
Ms C Apthorpe 20,000 - 20,000
Mr S Cornelius 22,500 - 22,500
Mr I Hofmaier 22,500 - 22,500
Mr N Mather** 13,808 - 13,808
239,768 - 239,768
* Fees relating to Mr C Cannon Brookes are paid to Arlington
Group Asset Management Limited.
** Fees relating to Mr N Mather are paid to Samuel Capital Pty.
11. Related party transactions (continued)
Directors' remuneration and fees (continued)
Six months ended 30 June Share based
2022
Fees payments Total
GBP GBP GBP
Mr T Buenger 124,112 374,347 498,459
Mr C Cannon Brookes* 11,750 - 11,750
Mr A M J Collette 3,000 33,275 36,275
Mr S L Fabian 6,000 8,319 14,319
Mr M E Thompson 3,000 83,188 86,188
Mr A J Truelove 23,573 83,188 106,761
Ms C Apthorpe 9,128 - 9,128
Mr S Cornelius 10,269 - 10,269
Mr I Hofmaier 10,269 - 10,269
201,101 582,317 783,418
* Fees relating to Mr C Cannon Brookes are paid to Arlington
Group Asset Management Limited.
Other fees and transactions
Mr C Cannon Brookes was a director of Arlington Group Asset Management
Limited ("Arlington") for the period under review. During the
period, Arlington invoiced and was paid GBP25,000 in respect
of advisory fees (six months ended 30 June 2022: GBP821,754 in
respect of fund-raising commissions, advisory fees and expenses).
In the six months ended 30 June 2022, Arlington was granted 2,500,000
warrants, with an exercise price of 33 pence, exercisable over
a period of two years from the date of grant. The Group recognised
a charge against share premium of GBP176,766 in respect of these
warrants. No warrants were issued during the current period.
12. Share capital
30 31
June December
2023 2022
GBP GBP
Allotted, called up and fully paid
265,534,972 (2022: 265,534,972) Ordinary shares
of GBP0.001 each 265,535 265,535
The shares have attached to them full voting, dividend and capital
distribution (including on winding up) rights; they do not confer
any rights of redemption.
13. Ultimate controlling party
In the opinion of the Directors, there is no controlling party
.
DIRECTORS, SECRETARY AND ADVISERS
Directors C Cannon Brookes (Non-executive Chairman)
T Buenger (Chief Executive Officer)
C Apthorpe (Non-executive Director)
S Cornelius (Non-executive Director)
I Hofmaier (Non-executive Director)
N Mather (Non-executive Director)
Company Secretary R G J Ainger
Registered Office First Floor
47/48 Piccadilly
London, W1J 0DT
Independent Auditor Crowe U.K. LLP
55 Ludgate Hill
London, EC4M 7JW
Financial Advisor / Joint
Broker Arlington Group Asset Management Limited
47/48 Piccadilly
London, W1J 0DT
Joint Broker WH Ireland Group plc
24 Martin Lane
London, EC4R 0DR
Financial Public Relations SEC Newgate UK Limited
14 Greville Street
London, EC1N 8SB
Legal Advisers to the
Company Charles Russell Speechlys LLP
5 Fleet Place
London, EC4M 7RD
Registrars Share Registrars Limited
3 The Millenium Centre
Crosby Way
Farnham, GU9 7XX
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END
IR EAKNFALDDEFA
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September 22, 2023 02:00 ET (06:00 GMT)
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