TIDMEDL
RNS Number : 1577B
Edenville Energy PLC
29 September 2022
29 September 2022
EDENVILLE ENERGY PLC
("Edenville", "Company" or the "Group")
Interim Results for the six months to 30 June 2022
Edenville Energy Plc (AIM: EDL) announces its unaudited interim
results for the six months ended 30 June 2022.
CEO's report
Operational overview
The six month period to 30 June 2022 was one of transition for
the Company and prior to the significant management and operational
changes that took place post period end, as further detailed
below.
On 3 February 2022 the Company's subsidiary Edenville
International (Tanzania) Limited ("EITL") entered into a contract
with Nextgen Coalmine Limited ("Nextgen") for the operation of the
Company's Rukwa Coal Project ("Rukwa" or the "Project") in
Tanzania. The agreement with Nextgen was subsequently terminated on
31 May 2022 following a lack of progress by Nextgen, allowing the
Company to resume full control of the Project site and seek
alternative arrangements for the operation of Rukwa in light of the
macro changes that made the economics of the Project significantly
more attractive.
Following a period of consultation with several key
shareholders, a number of significant changes took place post
period end. CEO Alistair Muir, Non-executive Chairman Jeff
Malaihollo and Non-executive director Franco Caselli all resigned
from the board and were replaced by Noel Lyons as CEO, Paul Ryan as
Executive Director and Andre Hope as a Non-executive Director. Nick
von Schirnding assumed the role of Non-Executive Chairman. In
addition, there were several personnel changes within the Tanzania
based team, leading to a more coordinated and dedicated team fully
focused on stabilising output and striving to grow the monthly
output.
Following their appointment, the newly appointed executive team
signed an initial 12-month agreement (the "Agreement") with Brahma
Energies Limited ("Brahma") on 16 August 2022, commencing
immediately, to secure production and sales of a minimum of 4,000
tonnes of washed coal per month at the Company's Rukwa Project,
with the potential to increase to a minimum 6,000 tonnes
thereafter. Brahma are a local mine operator and commercial and
logistics specialist having up to 70 transport vehicles on the
roads of Tanzania. Their team is experienced in all aspects of
operations, mine management and coal commercial sales. One of the
significant attractions of Brahma to Edenville was an offtake which
will enable Edenville to sell any of its washed coal produced to
parties introduced by Brahma, as required.
Since the signing of the Agreement, Brahma have assumed full
day-to-day operational management and control of the Rukwa mine,
including covering all operational costs, with ultimate oversight
continuing to be provided by Edenville. Given local demand, sales
are currently expected to take place to customers in Tanzania and
adjoining neighboring countries.
The revenue share arrangements under the Agreement give
Edenville US$10 per tonne of washed coal sold at a minimum price of
US$35 per tonne, plus 60% of any sales revenue above US$35 per
tonne of washed coal. The global thermal coal price has reached new
highs since entering into the Agreement and the Company is
witnessing a knock-on positive effect on the domestic thermal coal
price in Tanzania. The previously reported 'at gate' sales price
range of US$35-50 per tonne for washed coal from Rukwa therefore
appears robust. Once consistent production is established and Rukwa
becomes a reliable source of coal for its clients, the Company
anticipates its position in offtake negotiations is likely to be
strengthened further.
Following extensive servicing and repairs on the main machinery
and wash plant at the Rukwa site, and the purchase of two
additional trucks, final works are expected to be completed
shortly, with production recommencing sufficient to achieve up to
4000 tonnes by the end of October 2022. The targeted production and
sales increase to 6,000 tonnes per month of washed coal is expected
to take place after the rainy season ends in March/April 2023.
Edenville will continue to manage the Rukwa project and fund its
corporate operational costs from its existing cash resources.
Edenville, at its sole discretion, can also deploy additional
capital to expedite production ramp up; any such capital deployed
is to be repaid to Edenville before any profit share is paid.
Edenville and Brahma continue to work closely to ensure maximum
efficiency and whilst Brahma have only been on site for a limited
time, we are encouraged by their performance. We look forward to
reporting on production levels and offtake contracts in due
course.
Financial results
For the six month period ended 30 June 2022 the Company had
revenue of GBP56,146 (H1 2021: GBP27,752).
The Group made a total comprehensive loss for the period of
GBP196,429 (H1 2021 loss of GBP513,497), which included a gain of
GBP624,211 arising from the translation of the Tanzanian subsidiary
accounts from US Dollars to Sterling.
The net assets at 30 June 2022 amounted to GBP6,926,616 (30 June
2021 GBP7,842,563). In addition, post period end, the Company
reached agreement for certain costs, amounting to GBP180,000, to be
recouped following an earlier aborted acquisition process, which
will strengthen the Group's working capital position pending
revenue from coal sales in the coming months.
Noel Lyons
Chief Executive Officer
29 September 2022
For further information please contact:
Edenville Energy Plc Via IFC Advisory
Nick Von Schirnding - Chairman
Noel Lyons - CEO
+44 (0) 20 7409
Strand Hanson Limited 3494
(Financial and Nominated Adviser)
James Harris
Rory Murphy
+44 (0) 20 7100
Tavira Securities Limited 5100
(Broker)
Oliver Stansfield
Jonathan Evans
+44 (0) 20 3934
IFC Advisory Limited 6630
(Financial PR and IR)
Tim Metcalfe
Florence Chandler
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Six months Six months Year
ended ended ended
30 June 30 June 31 Dec
22 21 21
Unaudited Unaudited Audited
As restated
Note GBP GBP GBP
Revenue 56,146 27,752 105,228
Cost of sales (452,484) (280,320) (684,848)
Gross loss (396,338) (252,568) (579,620)
Administrative expenses (423,627) (332,209) (875,564)
Share based payments - - -
Group operating loss (819,965) (584,777) (1,455,184)
Finance income - 12 701
Finance costs (675) (2589) (5,842)
Loss on operations before taxation (820,640) (587,354) (1,460,325)
Taxation - - (526)
Loss for the period after taxation (820,640) (587,354) (1,460,851)
Other comprehensive income/(loss):
Gain on translation of overseas
subsidiary 624,211 73,857 87,013
Total comprehensive loss for
the period (196,429) (513,497) (1,373,838
Attributable to:
Equity holders of the Company (195,155) (512,683) (1,371,573)
Non-controlling interest (1,274) (814) (2,265)
(196,429) (513,497) (1,373,838)
Loss per share
- basic and diluted (pence) 2 (3.79) (4.43) (8.04)
The income for the period arises from the Group's continuing
operations.
CONSOLIDATED statement of financial position
as at 30 June 2022
As at As at As at
30 June 30 June 31 Dec
22 21 21
Unaudited Unaudited Audited
Note GBP GBP GBP
Non-current assets
Property, plant and equipment 4 5,906,709 5,466,165 5,451,921
Intangible assets 5 349,607 307,080 315,002
6,256,316 5,773,245 5,766,923
Current assets
Inventories 180,124 248,864 142,721
Trade and other receivables 353,457 429,672 415,479
Cash and cash equivalents 477,438 1,873,072 1,229,801
1,011,019 2,551,608 1,788,001
Current liabilities
Trade and other payables (308,174) (419,825) (389,264)
Borrowings (5,206) (16,094) (18,258)
(313,380) (435,919) (407,522)
Current assets less current
liabilities 697,639 2,115,689 1,380,479
Total assets less current liabilities 6,953,955 7,888,934 7,147,402
Non - current liabilities
Borrowings - (23,517) -
Environmental rehabilitation
liability (27,339) (22,854) (24,632)
6,926,616 7,842,563 7,122,770
Capital and reserves
Called-up share capital 6 4,176,601 4,176,601 4,176,601
Share premium account 22,254,317 22,373,442 22,254,317
Share based payment reserve 346,774 341,522 453,614
Foreign currency translation
reserve 1,205,354 420,273 581,143
Retained earnings (21,038,103) (19,453,531) (20,325,577)
Issued capital and reserves
attributable to owners of the
parent company 6,944,943 7,858,307 7,140,098
Non-controlling interest (18,327) (15,744) (17,328)
Total equity 6,926,616 7,842,563 7,122,770
CONSOLIDATED statement of changes in equity
--------------------------------------------------Equity
Interests---------------------------------------
Share Share Retained Share Foreign Total Non-controlling Total
Capital Premium Earnings Option Currency interest
Account Reserve Translation
Reserve
GBP GBP GBP GBP GBP GBP GBP GBP
At 1 January
2022 4,176,601 22,254,317 (20,325,577) 453,614 581,143 7,140,098 (17,328) 7,122,770
Comprehensive
Income
for the year
Foreign
currency
translation - - - - 624,211 624,211 - 624,211
Loss for the
year - - (819,366) - - (819,366) (1,274) (820,640)
---------- ----------- ------------- ---------- ------------ ---------- ---------------- ----------
Total
comprehensive
income for
the year - - (819,366) - 624,211 (195,155) (1,274) (196,274)
Transactions
with
owners
Lapsed share
options - - 106,840 (106,840) - - - -
---------- ----------- ------------- ---------- ------------ ---------- ---------------- ----------
Total
transactions
with owners - - 106,840 (106,840) - - - -
Non-
controlling
interest
share of
goodwill - - - - - - 275 275
At 30 June
2022 4,176,601 22,254,317 (21,038,103) 346,774 1,205,354 6,944,943 (18,327) 6,926,616
========== =========== ============= ========== ============ ========== ================ ==========
--------------------------------------------------Equity
Interests---------------------------------------
Share Share Retained Share Foreign Total Non-controlling Total
Capital Premium Earnings Option Currency interest
Account Reserve Translation
Reserve
GBP GBP GBP GBP GBP GBP GBP GBP
At 1 January
2021 4,041,601 19,390,849 (18,866,991) 301,174 494,130 5,360,763 (14,902) 5,345,861
Comprehensive
Income
for the year
Foreign
currency
translation - - - - (73,857) (73,857) (28) (73,885)
Loss for the
year - - (586,540) - - (586,540) (814) (587,354)
---------- ----------- ------------- -------- ------------ ---------- ---------------- ----------
Total
comprehensive
income for
the year - - (586,540) - (73,857) (660,397) (842) (661,239)
Transactions
with
owners
Issued share
capital 135,000 3,240,000 - - - 3,375,000 - 3,375,000
Share issue
costs - (217,059) - - - (217,059) - (217,059)
Share based
payment - (40,348) - 40,348 - - - -
Total
transactions
with owners 135,000 2,982,593 - 40,348 - 3,157,941 - 3,157,941
At 30 June
2021 4,176,601 22,373,442 (19,453,531) 341,522 420,273 7,858,307 (15,744) 7,842,563
========== =========== ============= ======== ============ ========== ================ ==========
--------------------------------------------------Equity
Interests---------------------------------------
Share Share Retained Share Foreign Total Non-controlling Total
Capital Premium Earnings Option Currency interest
Account Reserve Translation
Reserve
GBP GBP GBP GBP GBP GBP GBP GBP
At 1 January 2021 4,041,601 19,390,849 (18,866,991) 301,174 494,130 5,360,763 (14,902) 5,345,861
Comprehensive
Income
for the year
Foreign currency
translation - - - - 87,013 87,013 - 87,013
Loss for the year - - (1,458,586) - - (1,458,586) (2,265) (1,460,851)
---------- ----------- ------------- -------- ------------ ------------ ---------------- ------------
Total
comprehensive
income for the
year - - (1,458,586) - 87,013 (1,371,573) (2,265) (1,373,838)
Transactions with
owners
Issue of share
capital 135,000 3,240,000 - - - 3,375,000 - 3,375,000
Share issue costs - (224,092) - - - (224,092) - (224,092)
Share
options/warrants
charge - (152,440) 152,440 -
---------- ----------- ------------- -------- ------------ ------------ ---------------- ------------
Total
transactions
with owners 135,000 2,863,468 - 152,440 - 3,150,908 - 3,150,908
Non- controlling
interest share
of
goodwill - - - - - - (161) (161)
At 31 December
2021 4,176,601 22,254,317 (20,325,577) 453,614 581,143 7,140,098 (17,328) 7,122,770
========== =========== ============= ======== ============ ============ ================ ============
consolidated CASH FLOW STATEMENT
Six months Six months Year
ended ended ended
30 June 30 June 31 Dec
22 21 21
Unaudited Unaudited Audited
GBP GBP GBP
Cash flows from operating activities
Operating loss (819,965) (584,777) (1,455,184)
Depreciation 144,039 113,420 264,677
Movement in inventories (20,310) - 17,799
Movement in trade and other receivables 185,761 (169,082) (116,768)
Movement in trade and other payables (112,135) (222,450) (286,968)
Loss on foreign exchange (115,391) (4,597) (2,687)
----------- ------------------------ ------------
Net cash used in operating activities (738,001) (867,486) (1,579,131)
----------- ------------------------ ------------
Cash flows from investing activities
Finance income 48 12 701
----
----------- ------------------------ ------------
Net cash used in investing activities 48 12 701
----------- ------------------------ ------------
Cash flows from financing activities
Repayment of convertible loan
notes - (432,226) (120,000)
Repayment of lease liabilities (14,078) (8,267) (30,214)
Lease interest (723) (2,589) (3,451)
Proceeds on issue of ordinary
shares - 3,375,000 3,375,000
Share issue costs - (217,059) (224,092)
Net cash generated from financing
activities (14,801) 2,714,859 2,997,243
----------- ------------------------ ------------
Net decrease in cash and cash
equivalents (752,754) 1,847,385 1,204,111
Cash and cash equivalents at beginning
of year 1,229,801 25,690 25,690
Exchange losses on cash and cash
equivalents 391 (3) -
Cash and cash equivalents at
end of year 477,438 1,873,072 1,229,801
=========== ======================== ============
NOTES TO THE INTERIM REPORT
1. Financial information and basis of preparation
The interim financial statements of Edenville Energy Plc are
unaudited consolidated financial statements for the six months
ended 30 June 2022 which have been prepared in accordance with UK
adopted international accounting standards. They include unaudited
comparatives for the six months ended 30 June 2021 together with
audited comparatives for the year ended 31 December 2021.
The interim financial statements do not constitute statutory
accounts within the meaning of section 434 of the Companies Act
2006. The statutory accounts for the year ended 31 December 2021
have been reported on by the company's auditors and have been filed
with the Registrar of Companies. The report of the auditors
contained an Emphasis of matter paragraph on going concern, the
recoverability of VAT in Tanzania and on the recoverability of
inventory. Aside from the Emphasis of matter paragraphs referred to
aboveabove, the auditor's report did not contain any statement
under section 498 of the Companies Act 2006.
The interim consolidated financial statements for the six months
ended 30 June 2022 have been prepared on the basis of accounting
policies expected to be adopted for the year ended 31 December
2022. These are anticipated to be consistent with those set out in
the Group's latest financial statements for the year ended 31
December 2021. These accounting policies are drawn up in accordance
with adopted International Accounting Standards ("IAS") and
International Financial Reporting Standards ("IFRS") as issued by
the International Accounting Standards Board.
2. Loss per share
The calculation of the basic and diluted loss per share is based
on the following data:
30 June 22 30 June 21 31 December
21
GBP GBP GBP
Loss after taxation (820,640) (587,354) (1,460,851)
Weighted average number
of shares in the period 21,645,575 13,270,575 18,144,205
Basic and diluted loss
per share (pence) (3.79) (4.43) (8.04)
The loss attributable to equity shareholders and weighted
average number of ordinary shares for the purposes of calculating
diluted earnings per ordinary share are identical to those used for
basic earnings per ordinary share. This is because the exercise of
share options and warrants would have the effect of reducing the
loss per ordinary share and is therefore anti-dilutive.
3. Dividends
No dividends are proposed for the six months ended 30 June 2022
(six months ended 30 June 2021: GBPnil, year ended 31 December
2021: GBPnil).
4. Property, plant and equipment
Coal Production Plant Fixtures Motor vehicles
assets & machinery & fittings Total
GBP GBP GBP GBP GBP
Cost or valuation
As at 1 January
2022 5,230,294 1,201,831 7,191 193,620 6,632,936
Foreign exchange
adjustment 574,580 131,210 334 19,437 725,561
At 30 June 2022 5,804,874 1,333,041 7,525 213,057 7,358,497
Accumulated depreciation
As at 1 January
2022 114,026 925,484 7,045 134,460 1,181,015
Depletion/Charge
for the year 3,587 132,234 18 8,200 144,039
Foreign exchange
adjustment 12,518 100,880 334 13,002 126,734
At 30 June 2022 130,131 1,158,598 7,397 155,662 1,451,788
Net book value
As at 30 June 2022 5,674,743 174,443 128 57,395 5,906,709
Coal Production Plant Fixtures Motor vehicles
assets & machinery & fittings Total
GBP GBP GBP GBP GBP
Cost or valuation
As at 1 January
2021 5,164,384 1,186,781 7,153 191,390 6,549,708
Foreign exchange
adjustment (58,917) (16,770) 318 (1,993) (77,362)
At 30 June 2021 5,105,467 1,170,011 7,471 189,397 6,472,346
Accumulated depreciation
As at 1 January
2021 106,209 678,472 6,958 113,494 905,133
Depletion/Charge
for the year - 103,800 44 9,576 113,420
Foreign exchange
adjustment (1,212) (10,260) 162 (1,062) (12,372)
At 30 June 2021 104,997 772,012 7,164 122,008 1,006,181
Net book value
As at 30 June 2021 5,000,470 397,999 307 67,389 5,466,165
4. Property, plant and equipment (continued)
Coal Production Plant Fixtures Motor vehicles
assets & machinery & fittings Total
GBP GBP GBP GBP GBP
Cost or valuation
As at 1 January
2021 5,164,392 1,186,781 7,153 191,390 6,549,716
Foreign exchange
adjustment 65,902 15,050 38 2,230 83,220
At 31 December
2021 5,230,294 1,201,831 7,191 193,620 6,632,936
Accumulated depreciation
As at 1 January
2021 106,215 678,472 6,958 113,494 905,139
Depletion/Charge
for the year 6,464 238,444 49 19,720 264,677
Foreign exchange
adjustment 1,347 8,568 38 1,246 11,199
At 31 December
2021 114,026 925,484 7,045 134,460 1,181,015
Net book value
As at 31 December
2021 5,116,268 276,347 146 59,160 5,451,921
5. Intangible assets
Mining Licences Total
GBP GBP
Cost or valuation
As at 1 January 2022 1,489,604 1,489,604
Foreign exchange
adjustment 163,644 163,644
At 30 June 2022 1,653,248 1,653,248
Accumulated amortisation
and impairment
As at 1 January 2022 1,174,602 1,174,602
Foreign exchange
adjustment 129,039 129,039
At 30 June 2022 1,303,641 1,303,641
Net book value
As at 30 June 2022 349,607 349,607
5. Intangible assets (continued)
Mining Licences Total
GBP GBP
Cost or valuation
As at 1 January 2021 1,470,833 1,470,833
Foreign exchange adjustment (17,185) (17,185)
At 30 June 2021 1,453,648 1,453,648
Accumulated amortisation
and impairment
As at 1 January 2021 1,159,801 1,159,801
Foreign exchange adjustment (13,233) (13,233)
At 30 June 2021 1,146,568 1,146,568
Net book value
As at 30 June 2021 307,080 307,080
Mining Licences Total
GBP GBP
Cost or valuation
As at 1 January 2021 1,470,833 1,470,833
Foreign exchange adjustment 18,771 18,771
At 31 December 2021 1,489,604 1,489,604
Accumulated amortisation
and impairment
As at 1 January 2021 1,159,801 1,159,801
Foreign exchange adjustment 14,801 14,801
At 31 December 2021 1,174,602 1,174,602
Net book value
As at 31 December 2021 315,002 315,002
6. Share capital
No No GBP No GBP GBP
Ordinary Ordinary Ordinary Deferred Deferred Total
shares shares of shares shares of shares share
of 1p each 0.02p each of 0.02p/1p 0.001p each of 0.001p capital
each each
Issued and fully
paid
At 1 January 2021 - 8,145,575,094 1,629,116 241,248,512,346 2,412,485 4,041,601
On 5 January the
company consolidated
and then subdivided
the brought forward
shares* 8,145,575 (8,145,575,094) (1,547,659) 154,765,925,000 1,547,659 -
On 21 January
the company issued
3,600,000 1p shares
at 0.25p 3,600,000 - 36,000 - - 36,000
On 26 May the
company issued
9,900,000 1p shares
at 0.25p 9,900,000 - 99,000 - - 99,000
As at 30 June
2021,31 December
2021 and 30 June
2022 21,645,575 - 216,457 396,014,437,346 3,960,144 4,176,601
============ ================ ============= ================ =========== ==========
*On 5 January 2021 the Company reduced the number of issued
ordinary shares of GBP0.0002 each in the Company by a multiple of
1,000 (the "Consolidation"), Following the Consolidation the
Company sub-divided each consolidated ordinary share of GBP0.20
each in the capital of the Company, into 1 ordinary share of
GBP0.01 each in the capital of the Company and 19,000 new deferred
shares of GBP0.00001 each in the capital of the Company.
7. Distribution of interim report to shareholders
The interim report will be available for inspection by the
public at the registered office of the company during normal
business hours on any weekday and from the Company's website
http://www.edenville-energy.com/ . Further copies are available on
request.
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