TIDMEUZ

RNS Number : 9068E

Europa Metals Ltd

01 November 2022

1 November 2022

Europa Metals Ltd

("Europa Metals", the "Company" or the "Group") (AIM, AltX: EUZ)

Final Results for the Year Ended 30 June 2022

Europa Metals, the European focused lead, zinc and silver developer, is pleased to announce its final results for the year ended 30 June 2022.

A pdf copy of the full Annual Report and Accounts is available at the following link: http://www.rns-pdf.londonstockexchange.com/rns/9068E_1-2022-11-1.pdf and will shortly be posted to shareholders who have requested hardcopies.

For further information on the Company, please visit www.europametals.com or contact:

Europa Metals Ltd

Dan Smith, Non-Executive Director and Company Secretary (Australia)

T: +61 417 978 955

Myles Campion, Executive Chairman and acting CEO (UK)

T: +44 (0)20 3289 9923

Strand Hanson Limited (Nominated Adviser)

Rory Murphy/Matthew Chandler

T: +44 (0)20 7409 3494

   WH Ireland Limited   (Broker) 

Harry Ansell/Dan Bristowe/Katy Mitchell/Sarah Mather

T: +44 (0)20 7 220 1666

Questco Corporate Advisory Proprietary Limited (JSE Sponsor)

Sharon Owens

T: +27 (11) 011 9212

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 as it forms part of United Kingdom domestic law by virtue of the European Union (Withdrawal) Act 2018, as amended.

Key Extracts from the Company's audited Report and Accounts are set out below :

Chairman and Interim CEO's statement

During the financial year ended 30 June 2022 and subsequently, Europa Metals Ltd ("Europa Metals" or the "Company") has conducted additional highly successful drilling campaigns and metallurgy work, with the results from our 2021 infill drill campaign facilitating an update to the independent Indicated resource estimate for our wholly owned Toral Project, effective as of 14 September 2021, to approximately 5.9 Mt @ 7.1% ZnEq (including Pb credits) within a total resource of approximately 20 Mt @ 6.3% ZnEq (including Pb credits). This represented a substantial, approximate 55%, increase in the indicated resource component and the updated resource estimate can be utilised in calculations for feasibility studies and to support future mine planning.

The 2021 drill campaign targeted the upper more siliceous levels of the resource at Toral, which exhibits a lower grade and thinner horizon than the lower carbonate facies. The campaign yielded some tremendous results with hole TOD-029 intersecting 20.45m @ 2.68% ZnEq(Pb+Ag) and hole TOD-034 intersecting 14.85m @ 8.36% ZnEq(Pb+Ag).

The campaign also successfully obtained a bulk sample from some of the daughter holes from holes TOD-029 and TOD-034 which were submitted to Wardell Armstrong International Limited ("WAI") for further metallurgical evaluation. As part of this testwork, we also engaged TOMRA GmbH in Germany to complete a programme of X-Ray transmission ("XRT") ore sorting work. Previous programmes had yielded positive results from such siliceous material illustrating the ability for the grade of this zone to potentially be upgraded.

The results from the ore sorting testwork were most reassuring, with the bulk siliceous sample showing an approximate 43% original mass rejection of waste and >94% recovery of metals. Carbonate sampling also returned positive results, improving on previous testwork with high 90% metal recoveries. This work serves to continue to support the thesis of utilising ore sorting as a pathway for leveraging the resource and the results will assist our planned future engineering studies. Following the year end, the Company announced further highly encouraging metallurgical testwork results for Toral, including locked cycle flotation testwork, in respect of sample material from both the upper siliceous zone and the lower carbonate zone.

During the first half of 2022, the Company completed a short geotechnical drill programme involving 5 shallow holes for approximately 79m in order to inform ground support for potential future plant construction. In early May 2022, we subsequently commenced our 2022 resource drilling campaign which is ongoing. The objective of this latest campaign is to seek to extend the pre-existing indicated resource estimate at depth towards the east of the current zone and thereby link up a known area of encouraging data. If successful, it should enable us to increase the resource tonnage and enhance the previously envisaged mining plan. The campaign is also feeding in to our previously announced R&D collaboration project with the University of Salamanca supported by Spain's Centre for the Development of Industrial Technology (CDTI), which is scheduled to be completed later this year.

In summary, the Europa Metals team has continued to advance Toral on a technical/engineering level and move the project environmentally and socially towards a Mining Licence Application (MLA) in a cost-effective manner. Over the coming period, the Board will continue with its endeavours to establish a clear pathway forward for Toral as we continue to believe in the clear potential for the profitable future development of Toral in a stable and secure first world jurisdiction. In this regard, we were pleased to recently announce a letter of intent in respect of a proposed US$6m farm-in arrangement with Denarius Metals Corp. (TSXV: DSLV; OTCQB: DNRSF) ("Denarius"), involving a two stage option and joint venture, pursuant to which it will be afforded the right to acquire up to an 80% ownership interest in Toral. This proposed transaction remains subject, inter alia, to confirmatory due diligence by Denarius, the finalisation and entry into of definitive documentation and all requisite shareholder and regulatory approvals as appropriate, and there can be no guarantee that the transaction will be completed. This proposed investment by Denarius represents a significant step forward with respect to the advancement of Toral, but also our ambition to secure potential further concessions in the surrounding Northern Spain region

In addition, we have continued to persue our stated business development strategy and identify promising complimentary opportunities for portfolio expansion. As at the end of the reporting period, the management team had reviewed over 18 projects, with four being discussed and evaluated at Board level, and we intend to continue such activity and to identify, investigate and assess additional opportunities of potential interest. Further updates will be provided as and when appropriate.

Myles Campion

Executive Chairman and Interim-CEO

31 October 2022

Consolidated Statement of Profit and Loss and Other Comprehensive Income

For the year ended 30 June 2022

 
                                                   2022          2021 
                                                      $             $ 
-----------------------------------------  ------------  ------------ 
 
 Revenue                                              -             - 
 Other income                                   168,268       147,537 
 Administration expenses                    (1,327,747)   (1,357,427) 
 Exploration expenditure                    (1,224,860)   (2,044,095) 
 Foreign exchange gain/(loss)                  (78,730)       (4,679) 
 Loss before taxation                       (2,463,069)   (3,258,664) 
 Income tax benefit / (expense)                       -             - 
                                           ------------  ------------ 
 
   Loss after income tax for the 
   year from continuing operations          (2,463,069)   (3,258,664) 
 Net loss for the year                      (2,463,069)   (3,258,664) 
 
   Other comprehensive income 
 
   Items that may be reclassified 
   subsequently to profit or loss 
 Net exchange (loss)/gain on translation 
  of foreign operation                         (39,490)     (383,469) 
 Other comprehensive income for 
  the year, net of tax                         (39,490)     (383,469) 
                                           ------------  ------------ 
 Total comprehensive loss for 
  the year                                  (2,502,559)   (3,642,133) 
                                           ============  ============ 
 
 Net loss for the year attributable 
  to: 
 Equity holders of the Parent               (2,502,559)   (3,642,133) 
                                           ------------  ------------ 
                                            (2,502,599)   (3,642,133) 
                                           ============  ============ 
 Total comprehensive loss for the 
  year attributable to: 
 Equity holders of the Parent               (2,502,599)   (3,642,133) 
                                           ------------  ------------ 
                                            (2,502,599)   (3,642,133) 
                                              Cents per     Cents per 
 Loss per share                                   share         share 
 
   Basic loss for the year attributable 
   to ordinary equity holders of 
   the Parent                                    (3.57)        (7.03) 
 Diluted loss for the year attributable 
  to ordinary equity holders of 
  the Parent                                     (3.57)        (7.03) 
 

The above Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the accompanying notes in the full Annual Report and Accounts.

Consolidated Statement of Financial Position

As at 30 June 2022

 
                                                2022           2021 
                                                   $              $ 
                                       -------------  ------------- 
 Assets 
 Current assets 
 Cash and short term deposits              1,650,056      1,180,768 
 Trade and other receivables                  85,420         84,720 
 Total current assets                      1,735,476      1,265,488 
                                       -------------  ------------- 
 
 Non-current assets 
 Plant and equipment                          46,877         66,718 
 Other receivables                            63,018        190,523 
 Right of use assets                          42,292         29,277 
 Capitalised exploration expenditure       1,229,196      1,276,964 
 Total non-current assets                  1,381,383      1,563,482 
                                       -------------  ------------- 
 
 Total assets                              3,116,859      2,828,970 
                                       -------------  ------------- 
 
 Liabilities and equity 
 Current liabilities 
 Trade and other payables                    139,119        261,886 
 Lease liability                              22,796         16,505 
 Unearned income                              20,937              - 
 Total current liabilities                   182,852        278,391 
                                       -------------  ------------- 
 
 Non-current liabilities 
 Lease liability                              12,507              - 
 Borrowings                                  186,925        121,727 
                                       -------------  ------------- 
 Total non-current liabilities               199,432        121,727 
                                       -------------  ------------- 
 
 Total liabilities                           382,284        400,118 
                                       -------------  ------------- 
 
 Net assets                                2,734,575      2,428,852 
                                       -------------  ------------- 
 
 Equity 
 Contributed equity                       48,227,649     45,695,303 
 Accumulated losses                     (48,843,673)   (46,380,604) 
 Reserves                                  3,350,599      3,114,153 
 Total equity                              2,734,575      2,428,852 
                                       -------------  ------------- 
 

The above Consolidated Statement of Financial Position is to be read in conjunction with the accompanying notes in the full Annual Report and Accounts.

Consolidated Statement of Cash Flows

For the year ended 30 June 2022

 
                                                    2022          2021 
                                                       $             $ 
                                            ------------  ------------ 
 Cash flows used in operating activities 
 Exploration and evaluation expenditure      (1,115,564)   (1,959,132) 
 Payments to suppliers and employees         (1,083,549)   (1,135,162) 
 Net cash flows used in operating 
  activities                                 (2,199,113)   (3,094,294) 
                                            ------------  ------------ 
 
 Cash flows used in investing activities 
 Payments for plant and equipment                  (768)      (28,056) 
 Net cash flows used in investing 
  activities                                       (768)      (28,056) 
                                            ------------  ------------ 
 
 Cash flows from financing activities 
 Lease principal repayments                     (34,783)      (25,879) 
 Proceeds from issue of shares                 2,760,272     3,633,082 
 Transaction costs on issue of shares          (138,369)     (253,101) 
 Proceeds from borrowings                        250,045       258,513 
 Net cash flows from financing activities      2,837,165     3,612,615 
                                            ------------  ------------ 
 
 Net increase/(decrease) in cash 
  and cash equivalents held                      637,284       490,265 
 Net foreign exchange difference               (167,996)      (10,139) 
 Cash and cash equivalents at 1 July           1,180,768       700,642 
 Cash and cash equivalents at 30 
  June                                         1,650,056     1,180,768 
                                            ------------  ------------ 
 

The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes in the full Annual Report and Accounts which can be accessed via the following link:

http://www.rns-pdf.londonstockexchange.com/rns/9068E_1-2022-11-1.pdf

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

FR BKDBBKBDDDDK

(END) Dow Jones Newswires

November 01, 2022 06:35 ET (10:35 GMT)

Europa Metals (LSE:EUZ)
Gráfica de Acción Histórica
De Feb 2024 a Mar 2024 Haga Click aquí para más Gráficas Europa Metals.
Europa Metals (LSE:EUZ)
Gráfica de Acción Histórica
De Mar 2023 a Mar 2024 Haga Click aquí para más Gráficas Europa Metals.