TIDMJAY
RNS Number : 0718O
Bluejay Mining PLC
29 September 2023
Bluejay Mining plc / EPIC: JAY / Market: AIM / Sector:
Mining
29 September 2023
Bluejay Mining plc ('Bluejay' or the 'Company')
Interim Results
Bluejay Mining plc, the AIM and FSE listed, and OTCQB traded,
exploration company with projects in Greenland and Finland, is
pleased to announce its Interim Results for the six months ended 30
June 2023 (the 'Period').
Highlights in H1 2023
-- Executive Chairman, Robert Edwards, released a strategic
review of Bluejay and its current portfolio of assets and new
development strategy
-- Positive results from the 2022 airborne geophysical survey at
Kangerluarsuk refined existing suite of drill-ready targets
-- Drill programme at Enonkoski consisting of follow-up drilling at the Laukunlampi target
-- Drilling commenced at Hammaslahti with assays underway
-- GBP1.3 million (US$1.65 million) raised through the issuance
of shares to new and existing shareholders primarily for the
advancement of Hammaslahti
Post Period
-- Finland strategy update where Bluejay retains 100% of Enonkoski Project
-- Director equity subscription of GBP30,000
-- Metals One commences trading on AIM
-- Placing to raise GBP600,000
-- Dundas project no longer deemed core to Bluejay portfolio
-- Supportive analytical results from the 2022 field-season at Disko
Chairman's Statement
The half year under review saw the Company assess its strategy,
and upon further reflection of the relative merits of the assets
within the portfolio and the results achieved to date, Bluejay
aligned its focus on those assets that it felt offered the best
risk/reward profile, of particular importance in a market
environment that is not cyclically supportive for mineral explorers
and developers. Our key objective is to enhance shareholder value
by developing commercial critical mineral discovery opportunities
in Greenland and Finland. I am both encouraged and assured in the
knowledge that Bluejay is fortunate to have more than one
opportunity within its current asset base to achieve this.
Realising value from such world class prospects like the
Disko-Nuussuaq Nickel-Copper-Cobalt-Platinum Group Metals Joint
Venture ('JV') Project ('Disko') with KoBold Metals and the
Kangerluarsuk Zinc-Lead-Silver+/-Cu-Ge Project ('Kangerluarsuk') in
Greenland, and the "re-discovery" of previously exploited licences
like the Hammaslahti Copper-Zinc-Silver-Gold Project
('Hammaslahti'), the Enonkoski Nickel-Copper-Cobalt Project
('Enonkoski') and the Outokumpu
Copper-Nickel-Cobalt-Zinc-Gold-Silver Project in Finland are all
opportunities which we aim to demonstrate. We are, by definition of
our broad base and critical metals exposure, now very much part of
the energy transition value chain. This in itself can and will
illicit very capable and credible partners given the global focus
on security of supply of such elements. Whilst we retain exposure
to illmenite (titanium feedstock) through our ownership of the
Dundas Ilmenite (Titanium) Project ('Dundas'), this can now be
considered "non-core". We can only express regret that this clarity
was not achieved earlier in the life of the project, but studies
needed to be concluded in order to determine whether the project
would work economically or not.
During our strategic review published in February 2023, both
Kangerluarsuk and Hammaslahti (both 100% held by Bluejay) strongly
met the technical criteria to be able to drive shareholder value
within a relatively short time frame. We can report that we were
able to progress one of these projects in the period under
review.
Following the publication of positive results from the previous
year's airborne survey and the release of a detailed technical
presentation for Bluejay's exciting Kangerluarsuk Project, where we
believe that we are dealing with a large-scale mineralised system ,
the prospect of conducting a maiden drill campaign was compelling.
Historical chip sample results of 41.1% zinc and 45.5% lead and
grab samples of 9.3% lead, 1.2% copper and 596 grams per tonne
('g/t') silver confirm that we have a very high potential district
under our control, hosting what we believe to be a major
palaeoproterozoic sedimentary basin immediately to the house and
hosted within this basin is the former Black Angel Zinc-Lead-Silver
Mine. This mine produced 11 million tonnes of ore grading at 12.6%
zinc, 4.1% lead and 29 g/t silver for its former operators, Cominco
(now Teck Resources) and Boliden.
In addition, the Geological Survey of Denmark and Greenland
('GEUS') has acknowledged Kangerluarsuk as containing the strongest
cluster of stream sediment zinc anomalies in Greenland, with
samples up to 2,200 parts per million zinc.
Sadly, unseasonal weather constraints prevented the commencement
of the field-season as we would have wished. Nonetheless, and as a
direct demonstration of our portfolio's flexibility, the Company
was subsequently able to pivot greater operational focus onto
Hammaslahti, and our other brownfield assets in Finland.
Previous work conducted by the Company several years ago
delineated the high potential E-lode which is located parallel to
historical mine workings. Historically, Hammaslahti produced a
total of seven million tonnes of high-grade copper-zinc-silver-gold
ore between 1971 and 1986, with all ore lodes remaining open at
depth. The discovery and expansion of E-lode makes for a compelling
exploration and development platform. At the end of May, the
Company commenced drilling at Hammaslahti. A 2,000 metre ('m')
drill programme conducted on the E-Lode confirmed the continuity of
the high-grade copper-zinc-silver-gold ore lode. Further indication
of the high-grade mineralisation present at Hammaslahti is the
presence of polymetallic mineralisation which is interpreted to be
a partially re-mobilised volcanogenic massive sulphide ('VMS'). The
historical high-grade production, coupled with the presence of
polymetallic mineralisation, indicates the potential of the project
to enhance shareholder value, in accordance with the Company's new
strategy. Elsewhere in Finland at Enonkoski, a total of 951m was
drilled out of the planned 1,000-1,500m campaign, and was
followed-up by another drilling programme consisting of a single
drill depth of 400m targeting the Laukunlampi intrusion all funded
by our then partner, Rio Tinto. However, post period end, the JV
agreement with Rio-Tinto at Enonkoski ended, with Bluejay retaining
100% of the project. The JV enabled Bluejay to significantly
advance its knowledge of the project through US$4.65 million in
exploration expenditure and it has opened up the potential of
targets along the Enonkoski belt. Specifically, the Company, when
appropriate, will focus on assessing the wealth of the
as-yet-untested targets at Makkola.
In addition, as part of our strategic review, Outokumpu was
deemed a potentially short term value producing prospect. Bluejay
recently increased its licence areas and is now the largest
landholder on the highly prospective Outokumpu belt, that hosts
three past producing high-grade, polymetallic mines. Low-cost
ground gravity and magnetic surveys are the next stage of work to
be completed, after which Bluejay will develop an optimal strategy
for development. Low-cost ground gravity and magnetic surveys to
progress the high-priority Haapovaara target are the next stage of
work to be completed, subject to funding, after which Bluejay will
develop an optimal strategy for the development of the project.
Haapovaara is located only a few kilometres along strike, to the
North East, of Boilden's Kylylahti Mine. The target is coincident
with two gravity highs in existing regional gravity data that have
never been drill tested.
In the post period the conditional divestment of the Company's
Black-Shales assets to Metals One was concluded with the successful
IPO of Metals One plc, in which Bluejay is now a significant equity
investor holding c. 29% of the listed equity.
Moving forward in 2023 and into 2024, Bluejay will continue to
use its new strategy to explore and develop its projects with the
aim to increase their value to, in turn, maximise value for its
shareholders.
Financial
In February, Bluejay announced an equity subscription where up
to US$6 million would be received from Towards Net Zero ('TNZ'),
consisting of three tranches of US$2 million. However, shortly
following the receipt of the first tranche, the Company took the
decision with the pragmatic agreement from TNZ, to terminate the
arrangement. The decision to return US$2 million of capital in
April 2023 was not taken lightly but was driven by the view that
the original benefits of the structure were outweighed by the risks
created by entering into it in the first place, and a simpler
funding route was pursued thereafter.
In June 2023, following the unforeseen weather conditions that
prevented workable access to Kangerluarusuk, the Company
successfully raised GBP1.3 million in new equity from new, and
importantly, existing shareholders, to instead further the
development of Hammaslahti. These funds immediately went towards
finalising a Mineral Resources Estimate ('MRE') on Hammaslahti's
E-Lode as well as general corporate purposes. At this time,
executive management agreed to take significant cuts to salaries
and non-executive directors have taken no fees whatsoever in the
form of cash or shares. This was followed in the post period with a
further capital increase raising GBP600,000 to ensure that the
Company is best positioned to ensure it can deliver on its strategy
for the second half of 2023, setting us up for what we believe
could be a transformational 2024. Bluejay has received credit notes
from some suppliers that were paid during the period under review
but for which Bluejay could not take delivery of goods or services
due to delayed exploration programmes. The Company continues to
scrutinise its cost base and have cut costs wherever possible
without damaging the core technical competencies of the
business.
With respect to the recent management and Board decision to
curtail activities at Dundas, the obligatory impairment test will
be carried out on Dundas at the appropriate time to determine the
extent, if any, of any impairment that is due. In the interim and
in line with our public disclosure, the Company will seek
commercial alternatives for the project and will be better placed
to make a judgement on book value once this initiative has been
progressed.
Outlook
The first half of the year marked a significant change in
strategy for the Company. One that I have no doubt in my mind will
take Bluejay on an upward trajectory. We still find ourselves at
the early stages of the shift, but we are already realising the
value it is creating. Value that will continue to grow as we
continue to implement our new ideas.
Although the strategy has taken a new turn, the metals in which
our portfolio of projects are associated with continue to be
essential to the global energy transition and the jurisdictions in
which they are found continue to be world class. With all of this
considered, Bluejay is still extremely well positioned to deliver
on its strategy.
Prior to our JV with Rio Tinto, Enonkoski was one of the least
visible projects within Bluejay's portfolio. The value in which
that partnership has provided means the Company now has a project
that is significantly further up the value curve, and one where it
can utilise its own inhouse expertise to further develop.
These in house expertise are currently being deployed at
Hammaslahti, where we believe the development of a MRE is the first
milestone of many, as we continue to seek short term value creating
opportunities. Kangerluarsuk is another short term value creating
opportunity for the Company and remains a high priority with
planning activities aiming for exploration at the project in 2024
underway.
Our ability to pivot and focus on other promising projects when
events arise that are out of our control speaks volumes of the
strength of Bluejay's project portfolio.
The updated results at Disko increase our confidence that the
Company is in possession of a potential world class asset and we
will know more in 2024.
Bluejay is progressing positive discussions with four strategic
entities with complimentary attributes which we believe have the
ability to strengthen both the financial and technical capabilities
of the business as we explore and develop our portfolio of
projects. This is aimed to both financially de - risk the business
as well as create a unique and powerful combination of skills.
Despite the positive discussions, and as previously mentioned,
there can be no certainty that any binding agreements will be
entered into, although we hope to conclude at least one of these
before the end of the year.
As always, I would like to thank those who have supported the
Company both internally and externally, as we continue to steer
Bluejay in a direction that should see significant progression
across the entire business. The rest of the year will see us
deliver further on our strategic goals, as we ensure the Company is
well positioned going into 2024. I look forward to updating
shareholders in that respect.
Robert Edwards
Non-Executive Chairman
Market Abuse Regulation (MAR) Disclosure
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 ('MAR') which has
been incorporated into UK law by the European Union (Withdrawal)
Act 2018.
For further information please visit www.bluejaymining.com or
contact:
Kevin Sheil Bluejay Mining plc enquiry@bluejaymining.com
----------------------------- ---------------------------
SP Angel Corporate Finance
LLP
Ewan Leggat / Adam (Nominated Adviser and
Cowl Broker) +44 (0) 20 3470 0470
----------------------------- ---------------------------
Tim Blythe / Megan BlytheRay
Ray / Said Izagaren (Media Contact) +44 (0) 20 7138 3205
----------------------------- ---------------------------
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Notes 6 months 6 months
to 30 June to 30 June
2023 Unaudited 2022 Unaudited
GBP (Restated
(1) )
GBP
------------------------------------------------ ------- ----------------- -----------------
Continuing operations
Revenue - -
Cost of sales (32,033) -
------------------------------------------------ ------- ----------------- -----------------
Gross (loss) (32,033) -
------------------------------------------------ ------- ----------------- -----------------
Administration expenses (932,792) (868,573)
Other gains 34,467 25,624
Foreign exchange (70,355) (15,828)
Operating loss (1,000,713) (858,777)
------------------------------------------------ ------- ----------------- -----------------
Other income 8 165,851 836,361
Net finance income/(expense) 7,372 (887)
Increase in share of net assets on joint
venture 7 177,810 555,803
Share of (losses) from joint venture 7 (9,455) (7,776)
------------------------------------------------ ------- ----------------- -----------------
(Loss)/Profit before income tax (659,135) 524,724
------------------------------------------------ ------- ----------------- -----------------
Income tax expense - -
------------------------------------------------ ------- ----------------- -----------------
(Loss)/Profit for the period (659,135) 524,724
------------------------------------------------ ------- ----------------- -----------------
Other comprehensive income
Items that may be reclassified to profit
or loss
Currency translation differences (906,600) 521,187
------------------------------------------------ ------- ----------------- -----------------
Total comprehensive (loss)/profit for
the period (1,565,735) 1,045,911
------------------------------------------------ ------- ----------------- -----------------
Earnings per share from continuing operations
attributable to the equity owners of the
parent
------------------------------------------------ ------- ----------------- -----------------
Basic and diluted (pence per share) 9 (0.06)p 0.05p
------------------------------------------------ ------- ----------------- -----------------
(1) Refer to Note 7
CONDENSED CONSOLIDATED BALANCE SHEET
Notes 30 June 31 December 30 June
2023 Unaudited 2022 Audited 2022 Unaudited
GBP GBP (Restated
(1) )
GBP
------------------------------------ ------- ----------------- --------------- -----------------
Non-current assets
Property, plant and equipment 5 1,582,916 1,718,337 1,874,805
Intangible assets 6 33,740,931 31,850,128 28,471,523
Investments in Joint Venture 7 4,609,875 4,470,787 2,633,172
------------------------------------ ------- ----------------- --------------- -----------------
39,933,722 38,039,252 32,979,500
------------------------------------ ------- ----------------- --------------- -----------------
Current assets
Trade and other receivables 1,561,964 995,129 841,338
Cash and cash equivalents 80,964 1,996,957 4,950,800
------------------------------------ ------- ----------------- --------------- -----------------
1,642,928 2,992,086 5,792,138
------------------------------------ ------- ----------------- --------------- -----------------
Total assets 41,576,650 41,031,338 38,771,638
------------------------------------ ------- ----------------- --------------- -----------------
Non-current liabilities
Deferred tax liabilities 496,045 496,045 496,045
------------------------------------ ------- ----------------- --------------- -----------------
496,045 496,045 496,045
Current liabilities
Trade and other payables 1,144,753 524,286 495,092
1,144,753 524,286 495,092
------------------------------------ ------- ----------------- --------------- -----------------
Total liabilities 1,640,798 1,020,331 991,137
------------------------------------ ------- ----------------- --------------- -----------------
Net assets 39,935,852 40,011,007 37,780,501
------------------------------------ ------- ----------------- --------------- -----------------
Capital and reserves attributable
to
equity holders of the Company
Share capital 7,493,002 7,492,041 7,492,041
Share premium 61,083,615 60,903,995 60,903,995
Shares to be issued 11 1,310,000 - -
Other reserves (6,541,770) (5,635,169) (6,692,087)
Retained losses (23,408,995) (22,749,860) (23,923,448)
------------------------------------ ------- ----------------- --------------- -----------------
Total equity 39,935,852 40,011,007 37,780,501
------------------------------------ ------- ----------------- --------------- -----------------
(1) Refer to Note 7
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
Share Share Shares Other Retained Total
capital premium to be reserves losses GBP
GBP GBP issued GBP GBP
GBP
----------- ------------ ----------- ------------- -------------- -------------
Balance as at 1
January 2022 7,484,355 55,705,882 - (7,213,274) (24,448,172) 31,528,791
----------------------------- ----------- ------------ ----------- ------------- -------------- -------------
Loss for the period - - - - (1,588,679) (1,588,679)
----------------------------- ----------- ------------ ----------- ------------- -------------- -------------
Other comprehensive
income for the year
Items that may be -
subsequently reclassified
to profit or loss
Currency translation
differences - - - 521,187 - 521,187
Total comprehensive
income for the year - - - 521,187 (1,588,679) (1,067,492)
Proceeds from share
issues 7,686 5,372,313 - - - 5,379,999
Issue costs - (174,200) - - - (174,200)
Total transactions
with owners, recognised
in equity 7,686 5,198,113 - - - 5,205,799
----------------------------- ----------- ------------ ----------- ------------- -------------- -------------
Balance as at 30
June 2023 (as reported
in 2022 interims) 7,492,041 60,903,995 - (6,692,087) (26,036,851) 35,667,098
----------------------------- ----------- ------------ ----------- ------------- -------------- -------------
Prior year adjustment
(note 7) - - - - 2,113,403 2,113,403
----------------------------- ----------- ------------ ----------- ------------- -------------- -------------
Balance as at 30
June 2022 (Restated
(1) ) 7,492,041 60,903,995 - (6,692,087) (23,923,448) 37,780,501
----------------------------- ----------- ------------ ----------- ------------- -------------- -------------
Balance as at 1
January 2023 7,492,041 60,903,995 - (5,635,169) (22,749,860) 40,011,007
----------------------------- ----------- ------------ ----------- ------------- -------------- -------------
Loss for the period - - - - (659,135) (659,135)
----------------------------- ----------- ------------ ----------- ------------- -------------- -------------
Other comprehensive
income for the year
Items that may be
subsequently reclassified
to profit or loss
Currency translation
differences - - - (906,600) - (906,600)
----------------------------- ----------- ------------ ----------- ------------- -------------- -------------
Total comprehensive
income for the year - - - (906,600) (659,135) (1,565,735)
----------------------------- ----------- ------------ ----------- ------------- -------------- -------------
Proceeds from share
issues 580 - - - - 580
Share based payment 380 179,620 10,000 - - 190,000
Shares to be issued
(refer to Note 11) - - 1,300,000 - - 1,300,000
----------------------------- ----------- ------------ ----------- ------------- -------------- -------------
Total transactions
with owners, recognised
in equity 960 179,620 1,310,000 - - 1,490,580
----------------------------- ----------- ------------ ----------- ------------- -------------- -------------
Balance as at 30
June 2023 7,493,002 61,083,615 1,310,000 (6,541,770) (23,408,995) 39,935,852
----------------------------- ----------- ------------ ----------- ------------- -------------- -------------
(1) Refer to Note 7
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
6 months 6 months
to 30 June to 30 June
2023 Unaudited 2022 Unaudited
GBP (Restated
(1) )
GBP
------------------------------------------------- ---- ----------------- -----------------
Cash flows from operating activities
(Loss)/Profit before taxation (659,135) 524,724
Adjustments for:
Depreciation 178,286 183,963
Share based payments 180,000 -
Loss on sale of property, plant and equipment 4,706 -
Net finance (costs)/income (7,372) 887
Foreign exchange loss/(gain) (40,642) -
Share of loss from JV 7 9,455 7,776
Increase in share of net asset on joint
venture 7 (148,543) (555,803)
Decrease/(Increase) in trade and other
receivables 738,165 (187,438)
Increase/(Decrease)in trade and other payables 621,438 (637,182)
Net cash generated/(used in) from operations 876,358 (663,073)
------------------------------------------------- ---- ----------------- -----------------
Cash flows from investing activities
Purchase of property, plant and equipment (90,228) (243,514)
Proceeds from sale of property, plant and
equipment (49) 24,119
Interest received 6,378 634
Purchase of intangible assets (2,759,158) (2,075,719)
Net cash (used in) investing activities (2,843,057) (2,294,480)
------------------------------------------------- ---- ----------------- -----------------
Cash flows from financing activities
Proceeds from share issues 580 5,380,000
Cost of share issues - (174,330)
Interest paid (10) (95)
Proceeds from borrowings 10 1,647,616 -
Repayment of borrowings 10 (1,601,973) -
Net cash used in financing activities 46,213 5,205,575
------------------------------------------------- ---- ----------------- -----------------
Net (decrease)/increase in cash and cash
equivalents (1,920,486) 2,248,022
Cash and cash equivalents at beginning
of period 1,996,957 2,701,792
Exchange gains on cash and cash equivalents 4,493 986
------------------------------------------------- ---- ----------------- -----------------
Cash and cash equivalents at end of period 80,964 4,950,800
------------------------------------------------- ---- ----------------- -----------------
(1) Refer to Note 7
NOTES TO THE INTERIM FINANCIAL STATEMENTS
1. General Information
The principal activity of Bluejay Mining plc (the 'Company') and
its subsidiaries (together the 'Group') is the exploration and
development of precious and base metals. The Company's shares are
listed on the AIM Market of the London Stock Exchange ('AIM'), the
Frankfurt Stock Exchange and the OTCQB exchange. The Company is
incorporated and domiciled in the UK.
The address of its registered office is 6 Heddon Street, London,
W1B 4BT.
2. Basis of Preparation
The condensed consolidated interim financial statements have
been prepared in accordance with the requirements of the AIM Rules
for Companies. As permitted, the Company has chosen not to adopt
IAS 34 "Interim Financial Statements" in preparing this interim
financial information. The condensed consolidated interim financial
statements should be read in conjunction with the annual financial
statements for the year ended 31 December 2022. The interim
financial statements have been prepared in accordance with UK
adopted International Accounting Standards.
The interim financial information set out above does not
constitute statutory accounts within the meaning of the Companies
Act 2006. It has been prepared on a going concern basis in
accordance with the recognition and measurement criteria of UK
adopted International Accounting Standards.
Statutory financial statements for the year ended 31 December
2022 were approved by the Board of Directors on 29 June 2023 and
delivered to the Registrar of Companies. The report of the auditors
on those financial statements was unqualified with material
uncertainty related to going concern.
Going concern
The Consolidated Financial Statements have been prepared on a
going concern basis. The Group's business activities, together with
the factors likely to affect its future development, performance
and position are set out in the Chairman's Statement and the
Strategic Report.
As at 30 June 2023, the Group had cash and cash equivalents of
GBP80,964, which did not include the GBP1.3 million (gross) from
the placing announced on 28 June 2023 and was received post-period
end. The Directors have prepared cash flow forecasts to 30
September 2024, which take account of the cost and operational
structure of the Group and parent company, planned exploration and
evaluation expenditure, licence commitments and working capital
requirements. These forecasts indicate that the Group and parent
company's cash resources are not sufficient to cover the projected
expenditure for the period for a period of 12 months from the date
of approval of these financial statements. These forecasts indicate
that the Group and parent company, in order to meet their
operational objectives, and meets their expected liabilities as
they fall due, will be required to raise additional funds within
the next 12 months.
In common with many exploration and evaluation entities, the
Company will need to raise further funds within the next 12 months
in order to meet its expected liabilities as they fall due, and
progress the Group into definitive feasibility and then into
construction and eventual production of revenues. The Directors are
confident in the Company's ability to raise additional funds as
required, from existing and/or new investors, within the next 12
months. The Company has demonstrated its access to financial
resources, as evidenced by the successful completion of a Placing
in July 2023 raising gross proceeds of GBP1.3 million and August
raising gross proceeds of GBP600,000.
Given the Group and parent company's current cash position and
its demonstrated ability to raise capital, the Directors have a
reasonable expectation that the Group and parent company has
adequate resources to continue in operational existence for the
foreseeable future.
Notwithstanding the above, these circumstances indicate that a
material uncertainty exists that may cast significant doubt on the
Group and parent company's ability to continue as a going concern
and, therefore, that the Group and parent company may be unable to
realise their assets or settle their liabilities in the ordinary
course of business. As a result of their review, and despite the
aforementioned material uncertainty, the Directors have confidence
in the Group and parent company's forecasts and have a reasonable
expectation that the Group and parent company will continue in
operational existence for the going concern assessment period and
have therefore used the going concern basis in preparing these
consolidated and parent company financial statements.
Risks and uncertainties
The Board continuously assesses and monitors the key risks of
the business. The key risks that could affect the Company's medium
term performance and the factors that mitigate those risks have not
substantially changed from those set out in the Company's 2022
Annual Report and Financial Statements, a copy of which is
available on the Company's website: www.bluejaymining.com . The key
financial risks are liquidity risk, credit risk, interest rate risk
and fair value estimation.
Critical accounting estimates
The preparation of condensed consolidated interim financial
statements requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities at the
end of the reporting period. Significant items subject to such
estimates are set out in Note 4 of the Group's 2022 Annual Report
and Financial Statements. The nature and amounts of such estimates
have not changed significantly during the interim period.
3. Accounting Policies
Except as described below, the same accounting policies,
presentation and methods of computation have been followed in these
condensed consolidated interim financial statements as were applied
in the preparation of the Group's annual financial statements for
the year ended 31 December 2022.
3.1 Changes in accounting policy and disclosures
(a) Accounting developments during 2023
The International Accounting Standards Board (IASB) issued
various amendments and revisions to International Financial
Reporting Standards and IFRIC interpretations. The amendments and
revisions were applicable for the period ended 30 June 2023 but did
not result in any material changes to the financial statements of
the Group or Company.
(b) New standards, amendments and interpretations in issue but
not yet effective or not yet endorsed and not early adopted
Standards, amendments and interpretations that are not yet
effective and have not been early adopted are as follows:
Standard Impact on initial application Effective date
---------- ------------------------------- ----------------
IAS 1 Classification of Liabilities 1 January 2024
as Current or Non-Current.
------------------------------- ----------------
The Group is evaluating the impact of the new and amended
standards above which are not expected to have a material impact on
the Group's results or shareholders' funds.
4. Dividends
No dividend has been declared or paid by the Company during the
six months ended 30 June 2023 (2022: GBPnil).
5. Property, plant and equipment
Software Machinery Office Right Total
GBP & equipment equipment of use GBP
GBP GBP assets
GBP
------------------------- ---------- -------------- ------------ --------- -----------
Cost
As at 1 January 2022 53,817 3,203,738 76,155 - 3,333,710
Additions - 237,141 6,373 - 243,514
Disposals - (45,693) - - (45,693)
Exchange Differences - 71,389 - - 71,389
As at 30 June 2022 53,817 3,466,575 82,528 - 3,602,920
------------------------- ---------- -------------- ------------ --------- -----------
As at 1 July 2022 53,817 3,466,575 82,528 - 3,602,920
Additions 7,417 1,171 1,697 - 10,285
Disposals - (90,643) - - (90,643)
Exchange Differences - 94,917 266 - 95,183
------------------------- ---------- -------------- ------------ --------- -----------
As at 31 December 2022 61,234 3,472,020 84,491 - 3,617,745
------------------------- ---------- -------------- ------------ --------- -----------
As at 1 January 2023 61,234 3,472,020 84,491 - 3,617,745
Additions - 79,229 10,999 - 90,228
Disposals (43,819) (17,390) (39,507) - (100,716)
Exchange Differences - (95,900) (179) - (96,079)
------------------------- ---------- -------------- ------------ --------- -----------
As at 30 June 2023 17,415 3,437,959 55,804 - 3,511,178
------------------------- ---------- -------------- ------------ --------- -----------
Depreciation
------------------------- ---------- -------------- ------------ --------- -----------
As at 1 January 2022 45,381 1,432,010 53,940 - 1,531,331
Charge for the year 4,147 173,809 6,007 - 183,963
Disposals - (21,574) - - (21,574)
Exchange differences - 34,395 - - 34,395
As at 30 June 2022 49,528 1,618,640 59,947 - 1,728,115
------------------------- ---------- -------------- ------------ --------- -----------
As at 1 July 2022 49,528 1,618,640 59,947 - 1,728,115
Charge for the year 4,288 176,593 4,870 - 185,751
Disposals - (66,251) - - (66,251)
Exchange differences - 51,444 349 - 51,793
As at 31 December 2022 53,816 1,780,426 65,166 - 1,899,408
As at 1 January 2023 53,816 1,780,426 65,166 - 1,899,408
Charge for the year 3,499 167,381 4,818 - 175,698
Disposals (43,819) (14,886) (37,354) - (96,059)
Exchange differences - (50,785) - - (50,785)
------------------------- ---------- -------------- ------------ --------- -----------
As at 30 June 2023 13,496 1,882,136 32,630 - 1,928,262
------------------------- ---------- -------------- ------------ --------- -----------
Net book value as at
30 June 2022 4,289 1,874,935 22,581 - 1,874,805
------------------------- ---------- -------------- ------------ --------- -----------
Net book value as at
31 December 2022 7,418 1,691,594 19,325 - 1,718,337
------------------------- ---------- -------------- ------------ --------- -----------
Net book value as at
30 June 2023 3,919 1,555,823 23,174 - 1,582,916
------------------------- ---------- -------------- ------------ --------- -----------
6. Intangible Assets
Intangible assets comprise exploration and evaluation costs and
goodwill. Exploration and evaluation costs comprise acquired and
internally generated assets.
Cost and Net Book Value Exploration & evaluation
assets
GBP
-------------------------------- --------------------------
Balance as at 1 January 2022 27,922,589
Exchange rate movements 558,362
Additions 2,075,719
Licenses transferred to JV at
NBV (2,085,147)
--------------------------------- --------------------------
As at 30 June 2022 28,471,523
--------------------------------- --------------------------
Balance as at 1 July 2022 28,471,523
Additions 2,668,971
Exchange rate movements 709,634
--------------------------------- --------------------------
As at 31 December 2022 31,850,128
--------------------------------- --------------------------
Balance as at 1 January 2023 31,850,128
Additions 2,759,158
Exchange rate movements (868,355)
As at 30 June 2023 33,740,931
--------------------------------- --------------------------
7. Investments in Joint Venture
During the 2021 financial year, Disko Exploration Ltd entered
into a joint venture agreement with Kobold Metals to drill in
Greenland for critical materials used in electric vehicles. On 1
February 2022, the joint venture company, Nikkeli Greenland AS
("Nikelli"), was incorporated and the specific licences were
transferred to Nikkeli.
Proportion of ownership
interest held
------------------------------------------------------- ----------- ---------------------------
Name Country of incorporation 30 June 2023 30 June 2022
--------------------------- ------------------------------ -------------------- --------------
Nikkeli Greenland A/S Greenland 49% 49%
--------------------------- ----------------------------------- --------------- --------------
GBP
Interest in joint venture 2,085,147
Share of loss in joint venture (7,776)
Increase in share of net asset 555,801
------------------------------------- -----------
As at 30 June 2022 (Restated (1) ) 2,633,172
------------------------------------- -----------
As at 1 July 2022 (Restated (1) ) 2,633,172
------------------------------------- -----------
Share of loss in joint venture (64,180)
------------------------------------- -----------
Increase in share of net asset 1,901,795
------------------------------------- -----------
As at 31 December 2022 4,470,787
------------------------------------- -----------
As at 1 January 2023 4,470,787
Share of loss in joint venture (9,455)
Foreign exchange differences (29,267)
Increase in share of net asset 177,810
-----------
As at 30 June 2023 4,609,875
-----------
Summarised financial information
Nikkeli Greenland A/S 6 months 6 months to
to 30 June 30 June 2022
2023 Unaudited Unaudited
Restated (1)
GBP GBP
Current assets 2,480 611,633
Non-current assets 9,513,942 5,360,158
Current liabilities 108,515 597,970
9,407,907 5,373,821
----------------- ---------------
6 months 6 months to
to 30 June 30 June 2022
2023 Unaudited Unaudited
Restated (1)
GBP GBP
Revenues - -
(Loss) after tax from continuing operations (19,296) (7,776)
----------------- ---------------
(19,296) (7,776 )
----------------- ---------------
6 months 6 months to
to 30 June 30 June 2022
2023 Unaudited Unaudited
Restated (1)
GBP GBP
Opening net assets 9,124,054 -
Assets acquired during the period 353,037 5,381,597
Loss for the period (9,455) (7,776)
Other comprehensive income - -
Foreign exchange differences (59,729) -
----------------- ---------------
Closing net assets 9,407,907 5,373,821
----------------- ---------------
Interest in joint venture at 49% 4,609,875 2,633,172
----------------- ---------------
Carrying value 4,609,875 2,633,172
----------------- ---------------
The financial statements of the JV are prepared for the same
reporting period as the Group. When necessary, adjustments are made
to bring the accounting policies in line with those of the Group.
This adjustment is retrospective and therefore an amendment has
been made to the prior year interim figures to bring them in line
with the equity method accounting policy adopted in the Financial
Statements for the year end 31 December 2022.
Increase in share of net assets is a non-cash adjustment to
increase/(decrease) the Group's ownership in the Joint Venture to
49% from additional contributions by the JV Partner.
Nikkeli Greenland A/S had no contingent liabilities or
commitments as at 30 June 2023.
(1) Restatement of 30 June 2022 Balances
The variance observed in the comparative figures for June 30,
2022, can be attributed to the alignment of the accounting policies
between the Joint Venture and the Group during the 31 December 2022
audit. Specifically, the policies brought into alignment were in
respect to the capitalisation of expenses that meet the criteria
outlined in IFRS 6, as well as the accounting treatment of the
share of net assets.
Impact on statement of profit or loss ((increase/(decrease) in
profit)
6 months
to 30 June
2022 Unaudited
GBP
------------------------------------------------------------- -----------------
Period ended 30 June 2022 (as reported in 2022 interims) (1,588,679)
Adjustments made to align accounting polices:
Increase in share of net assets on joint venture 555,803
Share of loss in joint venture 1,557,600
------------------------------------------------------------- -----------------
Period ended 30 June 2022 (Restated) 524,724
------------------------------------------------------------- -----------------
8. Other income
6 months 6 months
to 30 June to 30 June
2023 Unaudited 2022 Unaudited
GBP GBP
------------------------------ ----------------- -----------------
Income from related parties 165,851 836,361
165,851 836,361
----------------- -----------------
9. Earnings per Share
The calculation of earnings per share is based on a loss of GBP
659,135 for the six months ended 30 June 2023 (profit for six
months ended 30 June 2022: GBP524,724) and the weighted average
number of shares in issue in the period ended 30 June 2023 of
1,058,677,266 ( six months ended 30 June 2022: 1,014,895,493 ).
The calculation of diluted earnings per share is based on a
profit of GBP 524,724 for the six months ended 30 June 2023, the
weighted average number of shares in issue in the period ended 30
June 2023 of 1,014,895,493 and the share options exercisable as at
30 June 2023 of 57,275,000. No diluted earnings per share is
presented for the six months ended 30 June 2023 as the effect on
the exercise of share options would be anti-dilutive.
10. Borrowings
On 14 February 2023, the Company received funding for
US$2,000,000 as a convertible loan note. On the same date, the
Company issued 5,800,000 Initial Placement shares at nominal value
and 3,798,911 Commencement shares issued a price of GBP0.047382 per
share to the convertible loan note holder.
On 25 April 2023, the Company mutually agreed to repay the
US$2,000,000 amount received for the convertible loan note.
11. Events after the Reporting Date
On 28 June 2023, the Company raised GBP1,300,000 via the issue
and allotment of 74,285,707 new Ordinary Shares at a price of 1.75
pence per share. On the same day, the Company issued and allotted
571,429 new Ordinary Shares at a price of 1.75 pence per share in
lieu of fees. The shares were admitted to trading on the AIM market
of the London Stock Exchange on 3 July 2023 and have therefore been
classified as "Shares to be Issued".
On 31 July 2023, Finland Investments Limited sold the Company's
Black-Shales assets to Metals One. The consideration for this
transaction is GBP150,000 in cash, due no later than 18 months and
1 day subsequent to the date of completion, the allotment of
62,500,000 new ordinary shares in Metals One for a total value of
GBP3,125,000 with a further allotment of new ordinary shares,
equating to GBP1,000,000 at any time following completion and a
warrant over 7,500,000 new ordinary shares at an exercise price of
GBP0.05 exercisable for a period of 5 years from Admission.
On 31 July 2023, the Company allotted 1,714,285 ordinary shares
of 0.01 pence each, for a total consideration of GBP30,000. The
participation of Robert Edwards, Michael Hutchinson and Peter
Waugh, Directors of the Company, in the Subscription is considered
a related party transaction for the purposes of AIM Rule 13 of the
AIM Rules for Companies.
On 23 August 2023, the Company allotted 60,000,000 shares of
0.01 pence each, at a price of 1.0 pence per share, for a total
consideration of GBP600,000.
12. Approval of interim financial statements
The Condensed interim financial statements were approved by the
Board of Directors on 28 September 2023.
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END
IR SEMFWAEDSESU
(END) Dow Jones Newswires
September 29, 2023 02:00 ET (06:00 GMT)
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