TIDMGLR
RNS Number : 1838O
Galileo Resources PLC
29 September 2023
29 September 2023
Galileo Resources Plc
("Galileo" or the "Company" or the "Group")
Audited Results for the year ended 31 March 2023 and Notice of
Annual General Meeting
Galileo (AIM: GLR), the exploration and development mining
company, announces its audited results for the year ended 31 March
2023.
Highlights for the period under review
-- In April 2022, the company announced the commencement of
exploration on the newly acquired Kamativi lithium and Bulawayo
gold projects in Zimbabwe, which are the subject of a $1.5 million
earn-in agreement with BC Ventures, announced on the 7 March
2022.
-- On 4 August 2022 the company announced their intention to
start a 3,000m drilling programme at the Luansobe project.
-- In August 2022, the company reported that several gold and
nickel targets had been identified based on interpretation of the
recent high quality Xcalibur Airborne Geophysics (Pty)Ltd
aeromagnetic and radiometric survey flown over the Bulawayo gold
project.
-- In October 2022 the company announced that it has satisfied
conditions to acquire an initial 29% shareholding in BC Ventures
Limited, with the option to increase to 51% interest through the
company spending $1.5 million on exploration expenditure by the 21
January 2024.
-- On 20 October 2022 the company announced that Afrimat Limited
had given notice to Glenover Phosphate Proprietary Limited, in
which Galileo has a 30.7% direct and 4.99% indirect investment held
via Galagen Proprietary Limited, to acquire 100% of the shares in
Glenover for consideration ZAR300 million (the "Glenover
Acquisition").
-- On 23 November 2022 the company reported the completion of
drilling at the Luansobe project. A total of 28 vertical diamond
holes were drilled for 3,564 of drilling. Best results included a
23.7m intercept at 2.63% Cu from 85.3m in hole LUDD013, and the
company announced their intention to engage external independent
consultants Addison Mining Services to complete a JORC (2012)
compliant resource.
-- Issuance of 1,000,000 options were reported in November 2022
to a consultant of the company at an exercise price of 2.25 pence
per share, vesting immediately.
-- In November 2022 a number of new gold and nickel targets were
reported on the Bulawayo project following a period of intense
surface exploration.
-- In December 2022 the company reported that surface
exploration work on the Kamativi lithium project in southwest
Zimbabwe had defined four target zones with potential for
pegmatite-hosted lithium, tin and tantalum.
-- In January 2023, the company announced the full assay results
for the nine diamond drill holes completed on the Shinganda
project. A total of 1,227 meters were drilled, confirming a
supergene copper-gold mineralised gossan zone containing malachite,
chalcocite, native copper and associated gold mineralisation. Best
intercepts included;
o 50.3 at 1.54% Cu and 0.30 g/t Au from 21m in hole SHDD002
o 43.7m at 1.01% Cu and 0.18 g/t Au from 7.3m in hole
SHDD004
-- In early February 2023, further potential was announced at
Shinganda with the company reporting on encouraging surface grab
and soil sampling, with target zones returning up to 33.9 g/t Au in
grab sampling
-- On 9 February 2023 the company announced an initial JORC
(2012) Inferred Mineral Resource Estimate for the Luansobe copper
project in Zambia, including;
o approximately 5.8 million tonnes gross at 1% Cu above a
cut-off grade of 0.25% total Cu for 56,000 tonnes of contained Cu,
potentially amenable to open pit mining
o approximately 6.3 million tonnes gross at 1.5% total Cu above
a cut-off grade of 1% total Cu for 97,000 tonnes of contained Cu,
potentially amenable to underground mining
-- On the 9 February 2023, the company announced additional
potential at the Luansobe project, including a 3 to 7 million tonne
gross exploration target with grades in the region of 1% to 1.5%
total Cu, at depths between 100m and 300m, in an underexplored area
of the licence.
-- In March 2023, the company reported on the Bulawayo Gold
project, that wide-spaced soil traverses along the Bembeshi Trend
had delineated a 1.5km long gold anomaly, with individual soil
samples returning analytical values of up to 1,458ppb Au. At the
Queen's West target, a ground magnetic survey identified seven
priority targets, with a number under-going continued ground
exploration works.
-- In July 2022, the Company announced that options to subscribe
for 39,000,000 new ordinary shares of the Company were granted to
the directors of the Company and key officers and employees at an
exercise price of 1.35 pence per share.
-- In August 2022, the Company announced that it had acquired
29% of BC Ventures for 50 million Galileo ordinary shares.
Highlights post the period under review
-- In May 2023, the company announced plans to commence low
detection mobile-metal-ion (Terra-LeachTM) soil sampling over
critical contact zones across its three licences at the Kalahari
Copper Belt project in Botswana. Additionally, it was announced
that at no cost, the company will acquire the results of an
airborne gravity survey jointly commissioned by Cobre Limited and
Sandfire Resources, who hold neighbouring licences, on part of its
licence PL253/2018.
-- In mid-June 2023, the company announced that drilling had
commenced at the Kamativi lithium project, following the discovery
of a substantial lithium-in-soil anomaly, which peaks at 1,000ppm
Li and extends over a strike length of 3km.
-- In June 2023, the company provided an update and revised
timetable regarding The Glenover Acquisition to Afrimat Limited.
The amendment removes the requirement for the previous suspensive
conditions to be met before the first two tranches of consideration
are paid, setting a revised timetable, with the final payment made
on 30 April 2024.
-- In June 2023, the company announced that they had exercised
the option to enter into a joint venture agreement, and be a issued
a 51% interest over the Shinganda Copper-Gold Project, following
the expenditure of more than US$500,000 in direct exploration
costs. This enabls Galileo the ability to increase its equity in
the project to a percentage ranging from 65 to 85 per cent
depending on the size of any future discovery.
-- At the end of June 2023, the company announced the
delineation of a number of elevated gold-in-soil targets at the
Bulawayo gold project in Zimbabwe. The targets follow structural
trends surrounding the historic Queen's Gold Mine, peaking at 2.1
g/t Au with associated elements.
-- In August 2023, the company reported that their first hole
drilled at Kamativi had been successful in intersecting significant
lengths of lithium mineralisation in pegmatite rocks, with peak
values including a 4m intersection of 1% Li(2) O from 35m downhole
depth in drill hole KSDD001. Numerous additional pegmatite zones
were intersected and await assay results.
-- In September 2023, the company announced that it had entered
in to an earn-in agreement with Cooperlemon Consultancy Limited for
the exploration of copper on its licence 28001-HQ-LEL in Northwest
Zambia. After the initial cash payment of US$230,000, Galileo will
have the opportunity to earn a 65% interest in the joint venture
via the commitment of a Phase One exploration expenditure of not
less than US$750,000 over an initial 18-month period, and, issuance
of 2,500,000 Galileo Resources plc shares at a price of 1.175 pence
per share.
-- In September 2023, the company reported several immediate
drill targets had been delineated at Shinganda after a review and
combination of historical geophysical surveys with its own had
unlocked the structural framework of the property, highlighting a
cluster of IP (Induced Polarisation) anomalies and a new splay
fault close to the Shinganda prospect. Both target areas display
elevated copper in soils.
Notice of Annual General Meeting
Notice is hereby given that the Annual General Meeting of
Galileo will be held at Fladgate LLP, 16 Great Queen Street,
London, WC2B 5DG on 08 November 2023 at 11:00 a.m.
A copy of this announcement is available on the Company's
website www.galileoresources.com . along with a copy of the Annual
Report and Notice of AGM, both of which are being posted to
shareholders.
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) No. 596/2014, as
it forms part of UK Domestic Law by virtue of the European Union
(Withdrawal) Act 2018. Upon the publication of this announcement,
this inside information is now considered to be in the public
domain.
You can also follow Galileo on Twitter: @GalileoResource.
For further information,
please contact: Colin Bird, Tel +44 (0) 20 7581 4477
Chairman
Beaumont Cornish Limited
- Nomad Tel +44 (0) 20 7628 3396
Roland Cornish / James Biddle
Novum Securities Limited
- Broker Tel +44 (0) 20 7399 9400
Colin Rowbury/Jon Belliss
Shard Capital Partners LLP
-Joint Broker
Damon Heath Tel +44 (0) 20 7186 9952
Chairman's report
I am pleased to report that the Company has enjoyed a very
progressive and successful year with its projects across Zimbabwe,
Zambia, and Botswana and a successful exit from our Glenover
project in South Africa.
In Zimbabwe the Agreement with BC Ventures, we acquired a 29%
share of the company which we announced on the 10(th) of August
2022 and at the time of the report, we have expended in excess of
the expenditure of USD1.5million required to acquire 51% interest
in two Zimbabwean projects, thus entitling us to become an 80%
shareholder in the BC Ventures company. We have made particularly
good progress with the Zimbabwean based assets, in that we have
identified a significant gold target nearby the Queen's Mine, close
to Bulawayo.
In following up our airborne geophysical programme, we also
identified a new nickel target and large tracts of ground with
potential for gold mineralisation. We intend to follow up by test
drilling the gold anomalies in 2023 and undertaking further ground
geophysics to get a better understanding of the nickel
prospect.
The Kamativi Lithium/Tin project of some 520km2 has presented us
with the most exciting target in the BC Ventures acquisition
portfolio. During the year under review, we carried out significant
fieldwork and identified multiple anomalies which warranted a
reconnaissance drilling programme.
Post balance sheet, we commenced drilling and are currently on
the 10(th) hole, with the first hole reporting viable grade
lithium, with a short drilling interval reporting over 2% lithium
oxide, which was a very pleasing result. We have elected to
continue with this programme but have upgraded its status from
reconnaissance to resource definition status i.e., we are looking
for depth and strike extensions to build up a tonnes/grade profile
for that particular area in the Kamativi concession.
In Zambia during the period, we carried out further drilling to
establish the near-surface potential of the Luansobe Project, with
particular emphasis on filling gaps in the data and establishing
the amount of pre-strip required to commence an operation. We have
established a minable resource, together with all the parameters
necessary to commence an open pit operation with a mine life of 4-5
years, thereafter, progressing to an underground operation.
Also, in Zambia our Shinganda Joint Venture Project is proving
to be very exciting, since field work has found numerous
indications of shallow copper/gold mineralisation. The area is also
beginning to show all the indications of an IOCG deposit
(Iron-Oxide-Copper-Gold), which academia has talked about in
Zambia, without real solid evidence. We have built up significant
potential strike as well as question marks against what lies below
the intrusives. We intend to test both of these targets in the
fourth quarter of this year, continuing into next year. We have
completed our initial option period with Garbo Resource Solutions
Ltd and are now agreeing our formal final joint venture
relationship.
In Zambia we are currently working on developing a local
arrangement with artisan labour in the Kashitu area. Initially
stripping high grade willemite (+/- 30% Zn). Thereafter, if the
project is sustainable, we will look towards upgrade processing
techniques to treat the +/-5% Zn material, if the quantity and zinc
price support the decision.
In Botswana our Sandfire joint venture is progressing well, and
the year under review has seen Sandfire bring in their T3 mining
operation with current information suggesting that they are having
a painless production ramp-up with their anticipated result. This
is a credit to Sandfire's exploration and engineering prowess.
Sandfire is exploring a number of former Galileo licences in the
Kalahari Belt, for which the Company has financial exit formulas in
place, whilst we also have our own licences which we are actively
working on.
In South Africa the proceeds from the Afrimat deal were, post
the period, renegotiated and we received half the consideration in
shares during July 2023, with the balance to be received in cash
before the end of April 2024.
The international copper price remains rangebound between
USD7,500-USD8,500 per tonne, whilst the general forecast for
2024/2025 is USD9,000-USD11,000 per tonne, which is based as much
on supply fundamentals as demand. The demand features are very easy
to understand, but as yet the supply features are not.
Simplistically, there are not enough projects in development and
not too many large discoveries. In any event, the development of a
large discovery, will take some 8-12 years to bring into
production. It is my firm belief, often quoted, that copper is
moving from being an important metal to a critical strategic metal
and global major mining companies and governments are adjusting
their mines to this fact.
Again, my opinion is that the Majors will have to lower the bar
and seek discoveries or potential discoveries of 500,000 tonnes of
contained copper instead of the current 2 million tonnes of
contained copper.
To this end, we are very pleased with our recent joint venture
agreement, in Zambia in respect of a large exploration licence
adjacent to the Angolan border, which we believe has the potential
to host the Western Foreland terrain and Kamoa style
mineralisation. The licence is extremely well positioned in this
regard, and we look forward to commencing early exploration to test
our and other third-party companies' postulations.
I would like to thank my fellow directors, management team and
dedicated consultants for their support and excellent work for the
period under review. I look forward to the coming year, realising
one of our projects, any one of which could be transformational for
the company and its shareholders.
Colin Bird
Chairman
CONSOLIDATED AUDITED FINANCIAL STATEMENTS FOR THE YEARED 31
March 202 3
CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 March
2023
31 March 31 March
Figures in pound sterling 2023 2022
==================================== ================== =================
A s sets
Non- current assets
Intangible assets 5,161,591 3,875,570
In v estment in joint ventur es 835,149 2,936,125
L oans to joint ventur e s, associa
t es, and subsidiaries 9,547 792,259
Other financial assets 2,556,034 1,994,617
================== =================
8,562,321 9,598,571
================== =================
C urrent assets
T r ade and other receivables 284,923 119,856
Other financial assets 47,351 -
Cash and cash equivalents 1,435,511 4,648,995
================== =================
1,767,785 4,768,851
================== =================
Non-current assets held for sale 2,323,807 -
T o tal assets 12,653,913 14,367,422
===================================== ================== =================
E quity and liabilities
E quity
Share capital 32,753,530 31,996,730
Re serv es 421,097 1,223,801
Ac cumula ted loss (20,815,887) (19,351,353)
------------------------------------- ------------------ -----------------
12,358,740 13,869,178
Non-controlling interest 117,754 117,754
------------------ -----------------
12,476,494 13,986,932
------------------ -----------------
Liabilities
Non- current liabilities
Other financial liabilities 5 6
Deferred tax - -
------------------ -----------------
5 6
------------------ -----------------
C urrent liabilities
T r ade and other pa yables 177,414 106,234
Taxation payable - 274,250
------------------ -----------------
177,414 380,484
================== =================
T o tal liabilities 177,419 380,490
================== =================
T o tal equity and liabilities 12,653,913 14,367,422
===================================== ================== =================
These financial statements were approved by the directors and
authorised for issue on 28 September 2023 and are signed on their
behalf by:
Colin Bird Joel Silberstein
Company number: 05679987
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEARED 31
March 2023
Figures in pound 31 March 31 March
sterling 2023 2022
Other income 289,040 -
Oper ating expenses (1,257,877) (753,321)
------------------ ------------------------
Oper ating loss (968,837) (753,321)
In v estment revenue 90,096 332,904
Fair value adjustments 71,074 141,205
Profit/(loss) on sale of assets 291,758 (1,266,967)
Provision for impairments (274,314) (495,842)
Profit/(loss) from equity accounted in
v estments (765,172) 3,433,034
================== ========================
Profit/(l oss) for the y ear before taxation (1,555,395) 1,391,013
Taxation 88,865 151,563
------------------ ------------------------
Profit/(loss) for the year (1,466,530) 1,542,576
------------------ ------------------------
Other comprehensive income/(loss):
Items which may subsequently be reclassified
To profit or loss:
E x change differenc es on translating
foreign oper ations (837,904) 483,319
Other adjustments 1,996 -
================== ========================
T o ta l c omp r ehensi ve income/( lo
ss) f or the y e ar (2,302,438) 2,025,895
================== ========================
Earnings per share in pence (basic) (0.13) 0.15
All operating expenses and operating losses relate to continuing
activities.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY AS AT 31 March
2023
Figur es in
Pound F oreign Shares
S terling currency to
T o tal translation be Merger Share based T o tal
Share Share share r eserve issued r payment r eserv Ac cumula T o tal
capital premium capital (1) reserve eserve(2) r eserve(3) es ted loss equity
============== ============ ================= =================== =========== ========= ========== ================== ================= ============ ===========
Group
B alance at 1
April
2021 6,522,609 23,182,635 29,705,244 (776,495) - 1,047,821 566,374 837,700 (21,134,916) 9,408,029
------------ ----------------- ------------------- ----------- --------- ---------- ------------------ ----------------- ------------ -----------
Profit for the
y ear - - - - - - - - 1,542,576 1,542,576
Other
comprehensive
income - - - 483,319 - - - 483,319 - 483,319
T o tal
comprehensive
loss for the
y ear - - - 483,319 - - - 483,319 1,542,576 2,025,895
============ ================= =================== =========== ========= ========== ================== ================= ============ ===========
Issue of shar
es net
of issue
costs 184,559 2,100,696 2,285,255 - - - - - - 2,285,255
Shares to be
issued - - - - 150,000 - - 150,000 - 150,000
Warrants
lapsed - - - - - - (91,194) (91,194) 91,194 -
Options lapsed - - - - - - (149,793) (149,793) 149,793 -
Warrants
issued - 33,791 33,791 - - - 27,560 27,560 - -
Warrants
exercised - (27,560) (27,560) - - - (33,791) (33,791) - -
T o tal
contributions
by and
distributions
to owners of
Company
recognised
directly in
equity 184,559 2,106,927 2,291,486 - 150,000 - (247,218) (97,218) 240,987 2,435,255
B alance at 1
April
2022 6,707,168 25,289,562 31,996,730 (293,176) 150,000 1,047,821 319,156 1,223,801 (19,351,353) 13,869,178
============ ================= =================== =========== ========= ========== ================== ================= ============ ===========
Profit for the
y ear - - - - - - - - (1,466,530) (1,466,530)
Other
comprehensive
income - - - (837,904) - - - (837,904) - (835,908)
============ ================= =================== =========== ========= ========== ================== ================= ============ ===========
T o tal
comprehensive
profit for
the y ear - - - (837,904) - - - (837,904) (1,464,534) (2,302,438)
============ ================= =================== =========== ========= ========== ================== ================= ============ ===========
Issue of shar
es net
of issue
costs 63,742 693,058 756,800 - (150,000) - - (150,000) - 606,800
Options issued - - - - - - 185,200 185,200 - 185,200
Options lapsed - - - - - - - - - -
Warrants
lapsed - - - - - - - - - -
Warrants
issued - - - - - - - - - -
Warrants
exercised - - - - - - - - - -
T o tal
contributions
by and
distributions
to owners of
Company
recognised
directly in
equity 63,742 693,058 756,800 - (150,000) - 185,200 35,200 - 792,000
============ ================= =================== =========== ========= ========== ================== ================= ============ ===========
B alance at 31
March
2023 6,770,910 25,982,620 32,753,530 (1,131,080) - 1,047,821 504,356 421,097 (20,815,887) 12,358,740
============ ================= =================== =========== ========= ========== ================== ================= ============ ===========
(1) Foreign currency translation reserve comprises all foreign
currency differences arising from the translation of the financial
statements of foreign operations.
(2) Shares to be issued reserve comprises shares to be issued
post year end arising out a contractual obligation that existed at
year end.
(3) Merger reserve comprises the difference between the fair
value of an acquisition and the nominal value of the shares
allotted in a share exchange.
(4) Share based payment reserve comprises the fair value of an
equity-settled share based payment.
(5) On 4 March Galileo entered into a Deed of Assignment with
Cordoba and BC Ventures (the "Deed of Assignment") under which
Cordoba has assigned all its rights and obligations under the
Principal Agreement to Galileo for GBP150,000 which is being
settled by the issue of 13 741 609 new ordinary Galileo Resources
plc shares which will rank pari passu with existing Galileo
Resources plc shares.
CONSOLIDATED STATEMENT OF CASH FLOW FOR THE YEARED 31 March
2023
Figures in Pound Sterling 31 March 31 March
2023 2022
============================================= =============== ===========
Cash flows from oper ating activities
Cash generated from/(used in) oper ations (1,495,390) (901,221)
Dividends received from trading - -
Interest Income - -
Net cash from oper ating activities (1,495,390) (901,221)
============================================= =============== ===========
Cash flows from in v esting activities
Additions to intangible assets (1,229,886) (1,559,823)
Sale of intangible 291,759 -
Dividends received from Joint Venture - 238,827
Distributions from Joint Venture (incl subs,
JVs & Assoc) - 2,417,977
Movement in investments (incl subs, JVs and - -
Assoc)
Loan movement 369,579 -
Purchase of financial assets (1,149,545) (132,644)
Proceeds on sale of non-current assets held
for sale - 1,132,394
Net cash flows from in v esting activities (1,718,092) 2,096,731
============================================= =============== ===========
Cash flows from financing activities
Net proceeds from share issues - 2,060,529
Repayment of loans from group companies (1) -
--------------- -----------
(1) 2,060,529
=============== ===========
T o tal cash movement for the y ear (3,213,483) 3,256,039
Cash at the beginning of the y ear 4,648,994 1,392,955
=============== ===========
T o tal cash at end of the y ear 1,435,511 4,648,994
============================================= =============== ===========
Statement of Directors' Responsibilities for the year ended 31
March 2023
-- The directors are required in terms of the Companies Act 2006
to maintain adequate accounting records and are responsible for the
content and integrity of the consolidated annual financial
statements and related financial information included in this
report. It is their responsibility to ensure that the consolidated
annual financial statements fairly present the state of affairs of
the Group as at the end of the financial year and the results of
its operations and cash flows for the period then ended, in
conformity with the applicable UK laws.
-- The consolidated annual financial statements are prepared in
accordance with UK adopted international accounting standards and
are based upon appropriate accounting policies consistently applied
and supported by reasonable and prudent judgments and estimates.
The directors acknowledge that they are ultimately responsible for
the system of internal financial control established by the Group
and place considerable importance on maintaining a strong control
environment. To enable the directors to meet these
responsibilities, the board sets standards for internal control
aimed at reducing the risk of error or loss in a cost-effective
manner. The standards include the proper delegation of
responsibilities within a clearly defined framework, effective
accounting procedures and adequate segregation of duties to ensure
an acceptable level of risk. These controls are monitored
throughout the Group and all employees are required to maintain the
highest ethical standards in ensuring the Group's business is
conducted in a manner that in all reasonable circumstances is above
reproach. The focus of risk management in the Group is on
identifying, assessing, managing and monitoring all known forms of
risk across the Group. While operating risk cannot be fully
eliminated, the Group endeavours to minimise it by ensuring that
appropriate infrastructure, controls, systems and ethical behavior
are applied and managed within predetermined procedures and
constraints.
-- The directors are of the opinion, based on the information
and explanations given by management that the system of internal
control provides reasonable assurance that the financial records
may be relied on for the preparation of the consolidated annual
financial statements. However, any system of internal financial
control can provide only reasonable, and not absolute, assurance
against material misstatement or loss.
-- The going concern basis has been adopted in preparing the
consolidated annual financial statements. The directors have no
reason to believe that the Group will not be a going concern in the
foreseeable future, based on forecasts and available cash
resources. These consolidated annual financial statements support
the viability of the company. the directors have reviewed the
Group's financial position at the balance sheet date and for the
period ending on the anniversary of the date of approval of these
financial statements and they are satisfied that the Group has, or
has access to, adequate resources to continue in operational
existence for the foreseeable future.
Colin Bird Chairman
Joel Silberstein Finance director
Ed Slowey Technical director
J Richard Wollenberg Non-Executive director
Christopher Molefe Non-Executive Director
NOTES TO THE CONSOLIDATED AUDITED FINANCIAL STATEMENTS
1. Basis of preparation
The consolidated annual financial statements have been prepared
in accordance with UK-adopted International Accounting Standard and
the Companies Act 2006. The consolidated annual financial
statements have been prepared on the historical cost basis, except
for certain financial instruments at fair value, and incorporate
the principal accounting policies set out below. Cost is based on
the fair values of the consideration given in exchange for assets
and they are presented in Pound Sterling. The accounting policies
applied are consistent with those of the previous period.
2. Basis of consolidation
The consolidated annual financial statements incorporate the
annual financial statements of the Company and all entities,
including special purpose entities, which are controlled by the
Company.
Control exists when the Company has the power to govern the
financial and operating policies of an entity so as to obtain
benefits from its activities.
The results of subsidiaries are included in the consolidated
annual financial statements from the effective date of acquisition
to the effective date of disposal.
Adjustments are made when necessary to the annual financial
statements of subsidiaries to bring their accounting policies in
line with those of the Group.
All intra-group transactions, balances, income and expenses are
eliminated in full on consolidation.
Non-controlling interests in the net assets of consolidated
subsidiaries are identified and recognised separately from the
Group's interest therein and are recognised within equity. Losses
of subsidiaries attributable to non-controlling interests are
allocated to the non-controlling interest even if this results in a
debit balance being recognised for non- controlling interest.
Transactions, which result in changes in ownership levels, where
the Group has control of the subsidiary both before and after the
transaction, are regarded as equity transactions and are recognised
directly in the statement of changes in equity.
The difference between the fair value of consideration paid or
received and the movement in non-controlling interest for such
transactions is recognised in equity attributable to the owners of
the parent.
Where a subsidiary is disposed of and a non-controlling
shareholding is retained, the remaining investment is measured to
fair value with the adjustment to fair value recognised in profit
or loss as part of the gain or loss on disposal of the controlling
interest.
3. Financial review
The Group reported a loss of GBP1,466,530 (2022: earnings of
GBP1,542,576) after taxation. Basic losses are 0.13 pence (2022:
earnings of 0.15pence) per share.
4. Segmental analysis
Business unit
The Company's investments in subsidiaries and associates, that
were operational at year-end, operate in four geographical
locations being South Africa, Botswana, Zambia, Zimbabwe and USA,
and are organised into one business unit, namely Mineral Assets,
from which the Group's expenses are incurred and future revenues
are expected to be earned. This being the exploration for and
extraction of its mineral assets through direct and indirect
holdings. The reporting on these investments to the board focuses
on the use of funds towards the respective projects and the
forecasted profit earnings potential of the projects.
The Company's investment in Zambia and Zimbabwe did not
contribute to the operating profit or losses and is excluded from
the segmental analysis.
Geographical segments
An analysis of the profit/(loss) on ordinary activities before
taxation is given below:
31 March 31 March
2023 2022
Rare earths, aggrega t es and iron ore and
manganese South Africa (717,323) 3,433,034
Copper Botswana 110,901 117,599
Gold USA (9,892) 8,170
Copper and corporate costs United Kingdom (939,082) (2,167,790)
Gold and lithium Zimbabwe - -
---------------- --------------
Total (1,555,396) 1,391,013
---------------- --------------
Geographical segments
An analysis of total liabilities:
31 March 31 March
2023 2022
Rare earths, aggrega t es and iron ore and
manganese South Africa (64,542) -
Copper Botswana (4,794) (274,250)
Gold USA - -
C orporate costs United Kingdom - (106,232)
Gold and lithium Zimbabwe (108,074) -
---------------- -------------
Total (177,410) (380,482)
---------------- -------------
Geographical segments
An analysis of total assets:
31 March 31 March
2023 2022
Rare earths, aggrega t es and iron ore and
manganese South Africa 3,459,946 6,601,178
Copper Botswana 1,481,683 1,629,307
Gold USA 1,613,873 1,396,831
Copper Zambia 2,508,201 1,059,311
Copper and C orporate costs United Kingdom 2,743,833 3,445,545
Gold and lithium Zimbabwe 846,377 235,249
---------------- --------------
Total 12,653,913 14,367,421
---------------- --------------
5. Taxation
As announced on 16 September 2021, Galileo concluded the sale of
9 of its Company's Kalahari Copper Belt Licences to Sandfire
Resources. As part of the transaction, during the previous
financial year when the transaction was still subject to certain
conditions precedent the Company recognised a deferred tax
liability in the amount of GBP425,813. The transaction was
completed during 2022 and the corresponding tax charge recognised
in profit or loss.
The applicable tax rate is calculated with reference to the
weighted average tax rate across the reporting jurisdictions for
the period under review. The weighted average tax rate for the year
under review was 19% (2022: 17.79%). No provision has been made for
2023 tax as the Group has no taxable income. The estimated Group
tax losses available for set off against future taxable income is
in excess of GBP5,000,000. The Group has not reflected a deferred
tax asset in respect of the losses carried forward as the Group is
not expected to generate taxable profits in the foreseeable
future.
6. Auditors' Report
The figures for the financial year ended 31 March 2023 are not
the Company's statutory accounts for that financial year but are
derived from those accounts.
The accounts for the financial year ended 31 March 2023, have
been reported on by the Company's auditors and are to be delivered
to the registrar of companies on or before the 30 September 2023.
The report of the auditors is (i) unqualified, (ii) does not give
any reference to any matters to which the auditors draw attention
by way of emphasis without qualifying their report, and (iii) does
not contain a statement under sections 498 (2) or (3) of the
Companies Act 2006, relating to the accounting records of the
company.
The comparative figures for the financial year ended 31 March
2022 are not the Company's statutory accounts for that financial
year but are derived from those accounts. Those accounts have been
reported on by the Company's auditors and delivered to the
registrar of companies. The report of the auditors was (i)
unqualified, (ii) did not give any reference to any matters to
which the auditors drew attention by way of emphasis without
qualifying their report, and (iii) did not contain a statement
under sections 498 (2) or (3) of the Companies Act 2006, relating
to the accounting records of the company.
7. Availability of the Annual Report
This information has been extracted from the Company's Audited
Annual Report for the year ended 31 March 2023, copies of which
were mailed to shareholders on 29 September 2023 and a copy will
also be available to shareholders and members of the public in hard
copy and free of charge, from the Company's London office at 1st
Floor, 7/8 Kendrick Mews, London, SW7 3HD. Alternatively, a
downloadable version will be available from 30 September 2023 from
Company's website: www.galileoresources.com .
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END
FR LLMLTMTJTMFJ
(END) Dow Jones Newswires
September 29, 2023 05:38 ET (09:38 GMT)
Galileo Resources (AQSE:GLR.GB)
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