Cornish Metals Inc. (
TSX-V/AIM:
CUSN) (“Cornish Metals” or the “Company”), a mineral
exploration and development company focused on its 100% owned and
permitted South Crofty tin project in Cornwall, United Kingdom, is
pleased to announce that it has released its unaudited financial
statements and management, discussion and analysis (“MD&A”) for
the three months ended March 31, 2024. The reports are available
under the Company’s profile on SEDAR+ (www.sedarplus.ca) and on the
Company’s website (www.cornishmetals.com).
Highlights for the three months ended
March 31, 2024 and for the period ending May 22, 2024
(All figures expressed in Canadian dollars
unless otherwise stated)
-
South Crofty Preliminary Economic Assessment (“PEA”) completed,
validating the South Crofty tin project’s economic viability (news
release dated April 30, 2024):
-
After-tax Net Present Value (“NPV”) of US$201 million and Internal
Rate of Return (“IRR”) of 29.8%;
-
Average annual tin production of over 4,700 tonnes for years two
through six, totaling 49,310 tonnes over a 14-year Life of
Mine;
-
Total after-tax cash flow of approximately US$626 million from
start of production.
-
Purchase of land totaling 7.7 acres located immediately adjacent to
South Crofty surface infrastructure (news release dated May 21,
2024):
-
The purchased land removes reliance on existing right-of-passage
agreements, providing the Company with direct access to all surface
infrastructure as well as additional space for future site works,
opportunities for potential operating cost savings, renewable
energy initiatives and improved overall property security.
-
Refurbishment of NCK shaft has commenced:
-
Rephasing shaft refurbishment will improve the functionality of New
Cook’s Kitchen (“NCK”) shaft and enable larger equipment to access
the mine at an earlier stage in its re-development (news release
dated March 3, 2024);
-
Winders and cages are now installed, fully commissioned and
certified to allow for safe transport of equipment and workers
within NCK shaft.
-
Mine dewatering continues with the submersible pumps and Water
Treatment Plant (“WTP”) operating to specifications:
-
Water level in NCK shaft is being maintained at approximately 280
meters below surface with the rate of dewatering being reduced to
allow shaft refurbishment and dewatering to proceed
concurrently;
-
Treated water being discharged to the Red River continues to exceed
the standards permitted by the Environment Agency.
-
The Company announced the appointment of Ken Armstrong, a
non-executive director, as Interim Chief Executive Officer (“CEO”)
effective March 31, 2024, replacing Richard Williams, who also
stepped down from the Company’s Board:
-
Patrick Anderson, Chairman of the Board, became the Executive
Chairman of the Company for the transition period until a permanent
CEO is appointed (news release dated March 15, 2024);
-
The process for the appointment of a permanent CEO has commenced
with the assistance of an appointed executive search
consultant.
-
Samantha Hoe-Richardson joined the Board as independent
non-executive director effective January 8, 2024 (news release
dated January 8, 2024).
Ken Armstrong, Interim CEO and Director
of Cornish Metals, stated, “The Cornish Metals team has
recently accomplished an important milestone for the Company,
completing a Preliminary Economic Assessment of the South Crofty
project that confirms the Project’s potential to be a low-cost and
long-life tin mining operation. The PEA results are compelling with
a post-tax NPV8% of US$201 million and IRR of about 30%,
representing a strong foundation for further evaluation of the
Project and enabling the Company to move forward with additional
preparation work and progress towards a construction decision.”
Financial highlights for the three
months ended March 31, 2024 and April 30, 2023
|
Three months ended (unaudited) |
|
March 31, 2024 |
April 30, 2023 |
(Expressed in Canadian dollars) |
|
|
Total operating expenses |
2,759,198 |
924,120 |
Loss for the period |
2,561,669 |
206,802 |
Net cash used in operating activities |
1,148,564 |
1,030,901 |
Net cash used in investing activities |
7,895,388 |
7,027,003 |
Net cash used in financing activities |
85,646 |
723 |
Cash at end of the period |
17,015,749 |
49,078,875 |
- Increase in
operating expenses impacted by higher travel and marketing
expenditure arising from increased investor engagement and
termination settlement payable to the former CEO;
- Expenditure of
$1.0 million on new or replacement equipment for the mine,
including the final payments for the permanent pumps for the
underground pump station, cages and the new winders;
- Dewatering costs
of $1.3 million for power, reagents, sludge disposal and
maintenance of the WTP;
- Other project
related expenditure of $2.5 million relating to the advancement of
South Crofty to a potential construction decision, primarily for
the ongoing feasibility study and NCK shaft re-access;
- Costs of $0.8
million incurred for the continuation of the exploration program at
Carn Brea; and
- Cash decreased
by $9.1 million to $17.0 million at the period end mainly due to
ongoing development activities at the South Crofty tin
project.
The Company changed its financial year end from
January 31 to December 31 with effect from December 31, 2023 with
the result that the current period of reporting is the three months
ended March 31, 2024. The comparative period of reporting is the
three months ended April 30, 2023.
The Company has allocated funding for near term
opportunities to progress the project, the most significant being
the purchase of the land located immediately adjacent to South
Crofty surface infrastructure. As a consequence of pursuing these
opportunities, additional financing will be required before the end
of 2024.
Outlook
The Company is advancing the South Crofty tin
project to a potential construction decision. The Company’s
objectives are as follows:
-
Dewater South Crofty mine and refurbish NCK shaft by September
2025;
-
Advancing all stages of the Feasibility Study;
-
Complete the 14-hole / 9,000 metre Wide Formation exploration drill
programme, and
- Commence
basic and detailed engineering studies, construction of the
processing plant, refurbishment of underground facilities and other
on-site early works.
The follow-up exploration drill programme at the
Wide Formation target will also continue subject to the receipt of
satisfactory drill results.
ABOUT CORNISH METALS
Cornish Metals is a dual-listed mineral
exploration and development company (AIM and TSX-V: CUSN) focused
on advancing the South Crofty high-grade, underground tin project
through to a construction decision, as well as exploring its
additional mineral rights, located in Cornwall, United Kingdom.
- South Crofty is
a historical, high-grade, underground tin mine that started
production in 1592 and continued operating until 1998 following
over 400 years of continuous production;
- The Project
possesses Planning Permission for underground mining (valid to
2071), to construct new processing facilities and all necessary
site infrastructure, and an Environmental Permit to dewater the
mine;
- South Crofty has
one of the highest grade tin Mineral Resources globally and
benefits from existing mine infrastructure including multiple
shafts that can be used for future operations;
- The 2024
Preliminary Economic Assessment for South Crofty validates the
Project’s potential (see news release dated April 30, 2024):
- US$201 million
after-tax NPV8% and 29.8% IRR
- 3-year after-tax
payback
- 4,700 tonnes
average annual tin production in years two through six
- Life of mine
all-in sustaining cost of US$13,700 /tonne of payable tin
- Total after-tax
cash flow of US$626 million from start of production
- Tin is a
Critical Mineral as defined by the UK, American, and Canadian
governments;
- Approximately
two-thirds of the tin mined today comes from China, Myanmar and
Indonesia;
- There is no
primary tin production in Europe or North America;
- Tin connects
almost all electronic and electrical infrastructure, making it
critical to the energy transition – responsible sourcing of
critical minerals and security of supply are key factors in the
energy transition and technology growth;
- South Crofty
benefits from strong local community, regional and national
government support.
- Cornish Metals
has a growing team of skilled people, local to Cornwall, and the
Project could generate up to 320 direct jobs.
TECHNICAL INFORMATION
The technical information in this news release
has been compiled by Mr. Owen Mihalop who has reviewed and takes
responsibility for the data and geological interpretation. Mr. Owen
Mihalop (MCSM, BSc (Hons), MSc, FGS, MIMMM, CEng) is Chief
Operating Officer for Cornish Metals Inc. and has sufficient
experience relevant to the style of mineralisation and type of
deposit under consideration and to the activity which he is
undertaking to qualify as a Competent Person as defined under the
JORC Code (2012) and as a Qualified Person under NI 43-101. Mr.
Mihalop consents to the inclusion in this announcement of the
matters based on his information in the form and context in which
it appears.
ON BEHALF OF THE BOARD OF
DIRECTORS
“Kenneth A. Armstrong”Kenneth A. Armstrong
P.Geo.
Engage with us directly at our investor hub.
Sign up at: https://investors.cornishmetals.com/link/WrAnXP
For additional information please contact:
Cornish Metals |
Fawzi HananoIrene Dorsman |
investors@cornishmetals.com info@cornishmetals.com |
|
|
Tel: +1 (604) 200 6664 |
SP Angel Corporate Finance LLP (Nominated Adviser
& Joint Broker) |
Richard Morrison Charlie Bouverat Grant Barker |
Tel: +44 203 470 0470 |
|
|
|
Cavendish Capital Markets Limited(Joint
Broker) |
Derrick LeeNeil McDonaldLeif Powis |
Tel: +44 131 220 6939Tel: +44 207 220 0500 |
|
|
|
Hannam & Partners(Financial Adviser) |
Matthew HassonAndrew Chubb Jay Ashfield |
cornish@hannam.partners Tel: +44
207 907 8500 |
|
|
|
BlytheRay(Financial PR) |
Tim Blythe Megan Ray |
tim.blythe@blytheray.com megan.ray@blytheray.comTel: +44 207 138
3204 |
|
|
|
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
Caution regarding forward looking
statements
This news release contains certain
“forward-looking information” and “forward-looking statements”
(collectively, “forward-looking statements”). Forward-looking
statements include predictions, projections, outlook, guidance,
estimates and forecasts and other statements regarding future
plans, the realisation, cost, timing and extent of mineral resource
or mineral reserve estimates, estimation of commodity prices,
currency exchange rate fluctuations, estimated future exploration
expenditures, costs and timing of the development of new deposits,
success of exploration activities, permitting time lines,
requirements for additional capital and the Company’s ability to
obtain financing when required and on terms acceptable to the
Company, future or estimated mine life and other activities or
achievements of Cornish Metals, including but not limited to:
mineralisation at South Crofty, mine dewatering and NCK Shaft
refurbishment expectations, timing of completion of a technical
report summarising the results of the PEA; the development,
operational and economic results of the PEA, including cash flows,
capital expenditures, development costs, extraction rates, recovery
rates, mining cost estimates; estimation of mineral resources;
statements about the estimate of mineral resources; magnitude or
quality of mineral deposits; anticipated advancement of the South
Crofty project mine plan; future operations; the completion and
timing of future development studies; anticipated advancement of
mineral properties or programmes; Cornish Metals’ exploration
drilling programme, exploration potential and project growth
opportunities for the South Crofty tin project and other Cornwall
mineral properties and the timing thereof, timing and results of
Cornish Metals’ feasibility study, the Company’s ability to
evaluate and develop the South Crofty tin project and other
Cornwall mineral properties, strategic vision of Cornish Metals and
expectations regarding the South Crofty mine, timing and results of
projects mentioned. Forward-looking statements are often, but not
always, identified by the use of words such as “seek”,
“anticipate”, “believe”, “plan”, “estimate”, “forecast”, “expect”,
“potential”, “project”, “target”, “schedule”, “budget” and “intend”
and statements that an event or result “may”, “will”, “should”,
“could”, “would” or “might” occur or be achieved and other similar
expressions and includes the negatives thereof. All statements
other than statements of historical fact included in this news
release, are forward-looking statements that involve various risks
and uncertainties and there can be no assurance that such
statements will prove to be accurate and actual results and future
events could differ materially from those anticipated in such
statements.
Forward-looking statements are subject to risks
and uncertainties that may cause actual results to be materially
different from those expressed or implied by such forward-looking
statements, including but not limited to: risks related to receipt
of regulatory approvals, risks related to general economic and
market conditions; risks related to the availability of financing;
the timing and content of upcoming work programmes; actual results
of proposed exploration activities; possible variations in Mineral
Resources or grade; outcome of the current Feasibility Study;
projected dates to commence mining operations; failure of plant,
equipment or processes to operate as anticipated; accidents, labour
disputes, title disputes, claims and limitations on insurance
coverage and other risks of the mining industry; changes in
national and local government regulation of mining operations, tax
rules and regulations. The list is not exhaustive of the factors
that may affect Cornish’s forward-looking statements.
Cornish Metals’ forward-looking statements are
based on the opinions and estimates of management and reflect their
current expectations regarding future events and operating
performance and speak only as of the date such statements are made.
Although the Company has attempted to identify important factors
that could cause actual actions, events or results to differ from
those described in forward- looking statements, there may be other
factors that cause such actions, events or results to differ
materially from those anticipated. There can be no assurance that
forward-looking statements will prove to be accurate and
accordingly readers are cautioned not to place undue reliance on
forward-looking statements. Accordingly, readers should not place
undue reliance on forward-looking statements. Cornish Metals does
not assume any obligation to update forward-looking statements if
circumstances or management’s beliefs, expectations or opinions
should change other than as required by applicable law.
Market Abuse Regulation (MAR)
Disclosure
The information contained within this announcement is deemed by
the Company to constitute inside information pursuant to Article 7
of EU Regulation 596/2014 as it forms part of UK domestic law by
virtue of the European Union (Withdrawal) Act 2018 as amended.
CONSOLIDATED CONDENSED INTERIM
STATEMENTS OF FINANCIAL POSITION
(Unaudited)(Expressed in Canadian dollars)
|
March 31, 2024 |
|
December 31, 2023 |
|
|
|
|
ASSETS |
|
|
Current |
|
|
Cash |
$ |
17,015,749 |
|
|
$ |
25,791,552 |
|
Marketable securities |
|
2,795,644 |
|
|
|
2,665,454 |
|
Receivables |
|
1,092,930 |
|
|
|
1,112,638 |
|
Prepaid expenses |
|
686,699 |
|
|
|
591,264 |
|
Deferred financing fees |
|
224,867 |
|
|
|
135,242 |
|
|
|
21,815,889 |
|
|
|
30,296,150 |
|
|
|
|
Deposits |
|
87,380 |
|
|
|
85,954 |
|
Property, plant and
equipment |
|
24,235,161 |
|
|
|
23,788,325 |
|
Exploration and
evaluation assets |
|
56,705,272 |
|
|
|
50,050,323 |
|
|
|
|
|
$ |
102,843,702 |
|
|
$ |
104,220,752 |
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
Current |
|
|
Accounts payable and accrued liabilities |
$ |
4,434,411 |
|
|
$ |
5,063,940 |
|
|
|
4,434,411 |
|
|
|
5,063,940 |
|
NSR
liability |
|
9,286,879 |
|
|
|
9,064,817 |
|
|
|
13,721,290 |
|
|
|
14,128,757 |
|
SHAREHOLDERS’
EQUITY |
|
|
Capital stock |
|
128,394,652 |
|
|
|
128,394,652 |
|
Capital contribution |
|
2,007,665 |
|
|
|
2,007,665 |
|
Share-based payment reserve |
|
889,839 |
|
|
|
711,690 |
|
Foreign currency translation reserve |
|
2,783,083 |
|
|
|
1,369,146 |
|
Deficit |
|
(44,952,827 |
) |
|
|
(42,391,158 |
) |
|
|
|
|
|
89,122,412 |
|
|
|
90,091,995 |
|
|
|
|
|
$ |
102,843,702 |
|
|
$ |
104,220,752 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED CONDENSED INTERIM STATEMENTS OF LOSS AND
COMPREHENSIVE LOSS
(Unaudited) (Expressed in Canadian dollars)
|
Three months ended |
|
March 31, 2024 |
|
April 30, 2023 |
|
|
|
|
EXPENSES |
|
|
Travel and marketing |
$ |
214,138 |
|
|
$ |
89,590 |
|
Insurance |
|
203,063 |
|
|
|
172,430 |
|
Office, miscellaneous and rent |
|
56,505 |
|
|
|
51,613 |
|
Professional fees |
|
275,093 |
|
|
|
200,735 |
|
Generative exploration costs |
|
1,191 |
|
|
|
2,607 |
|
Regulatory and filing fees |
|
29,265 |
|
|
|
33,274 |
|
Share-based compensation |
|
123,799 |
|
|
|
- |
|
Salaries, directors’ fees and benefits |
|
1,856,144 |
|
|
|
373,871 |
|
|
|
|
Total operating expenses |
|
(2,759,198 |
) |
|
|
(924,120 |
) |
|
|
|
Interest income |
|
265,666 |
|
|
|
388,384 |
|
Foreign exchange gain (loss) |
|
(18,900 |
) |
|
|
370,892 |
|
Unrealized loss on marketable securities |
|
(49,237 |
) |
|
|
(41,958 |
) |
|
|
|
Loss for the period |
|
(2,561,669 |
) |
|
|
(206,802 |
) |
|
|
|
Foreign currency translation |
|
1,413,937 |
|
|
|
2,963,722 |
|
Total comprehensive income (loss) for the
period |
$ |
(1,147,732 |
) |
|
$ |
2,756,920 |
|
|
|
|
Basic and diluted income (loss) per share |
$ |
(0.00 |
) |
|
$ |
0.01 |
|
|
|
|
Weighted average number of common shares
outstanding: |
|
535,270,712 |
|
|
|
535,265,094 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED CONDENSED INTERIM
STATEMENTS OF CASH FLOWS
(Unaudited) (Expressed in Canadian dollars)
|
For the three months ended |
|
March 31, 2024 |
|
April 30, 2023 |
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
|
|
|
|
Loss for the period |
$ |
(2,561,669 |
) |
|
$ |
(206,802 |
) |
Items not involving cash: |
|
|
|
|
|
|
|
Share-based compensation |
|
123,799 |
|
|
|
- |
|
Unrealized loss on marketable securities |
|
49,237 |
|
|
|
41,958 |
|
Foreign exchange loss (gain) |
|
18,900 |
|
|
|
(370,892 |
) |
|
|
|
|
|
|
|
|
Changes in non-cash working capital items: |
|
|
|
|
|
|
|
Decrease (increase) in receivables |
|
19,706 |
|
|
|
(528,374 |
) |
Increase in prepaid expenses |
|
(16,527 |
) |
|
|
(167,194 |
) |
Increase in accounts payable and accrued liabilities |
|
1,217,990 |
|
|
|
200,403 |
|
|
|
|
|
|
|
|
|
Net cash used in operating activities |
|
(1,148,564 |
) |
|
|
(1,030,901 |
) |
|
|
|
|
|
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES |
|
|
|
|
|
|
|
Acquisition of property, plant and equipment |
|
(2,369,406 |
) |
|
|
(3,179,655 |
) |
Acquisition of exploration and evaluation assets |
|
(5,525,982 |
) |
|
|
(3,818,598 |
) |
Increase in deposits |
|
- |
|
|
|
(28,750 |
) |
|
|
|
|
|
|
|
|
Net cash used in investing activities |
|
(7,895,388 |
) |
|
|
(7,027,003 |
) |
|
|
|
|
|
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES |
|
|
|
|
|
|
|
Increase in deferred financing fees |
|
(85,646 |
) |
|
|
- |
|
Lease payments |
|
- |
|
|
|
(723 |
) |
|
|
|
|
|
|
|
|
Net cash used in financing activities |
|
(85,646 |
) |
|
|
(723 |
) |
|
|
|
|
|
|
|
|
Change in cash during the period |
|
(9,129,598 |
) |
|
|
(8,058,627 |
) |
Cash, beginning of the period |
|
25,791,552 |
|
|
|
55,495,232 |
|
Impact of foreign exchange on cash |
|
353,795 |
|
|
|
1,642,270 |
|
|
|
|
|
|
|
|
|
Cash, end of the period |
$ |
17,015,749 |
|
|
$ |
49,078,875 |
|
|
|
|
|
|
|
|
|
Cash paid during the period for interest |
$ |
- |
|
|
$ |
- |
|
|
|
|
|
|
|
|
|
Cash paid during the period for income taxes |
$ |
|
|
|
$ |
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED CONDENSED INTERIM
STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
(Unaudited) (Expressed in Canadian dollars)
|
|
Share |
|
|
|
|
|
|
Foreign |
|
|
|
|
|
|
|
|
Capital stock |
subscriptions |
|
|
|
Share-based |
currency |
|
|
|
|
|
|
|
|
Number of |
|
received in |
|
Capital |
payment |
translation |
|
|
|
|
Shareholders’ |
|
|
shares |
Amount |
advance |
|
contribution |
reserve |
reserve |
|
Deficit |
|
equity – total |
|
Balance at January 31, 2023 |
535,020,712 |
|
$ |
128,377,152 |
|
$ |
17,500 |
|
$ |
2,007,665 |
|
$ |
384,758 |
|
$ |
(648,962 |
) |
$ |
(39,677,003 |
) |
$ |
90,461,110 |
|
Warrant exercise |
250,000 |
|
|
17,500 |
|
|
(17,500 |
) |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
Foreign currency translation |
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
2,963,722 |
|
|
- |
|
|
2,963,722 |
|
Loss for the period |
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
(206,802 |
) |
|
(206,802 |
) |
Balance at April 30, 2023 |
535,270,712 |
|
$ |
128,394,652 |
|
$ |
- |
|
$ |
2,007,665 |
|
$ |
384,758 |
|
$ |
2,314,760 |
|
$ |
(39,883,805 |
) |
$ |
93,218,030 |
|
|
|
|
|
|
|
|
|
|
Balance at December 31,
2023 |
535,270,712 |
|
$ |
128,394,652 |
|
$ |
- |
|
$ |
2,007,665 |
|
$ |
711,690 |
|
$ |
1,369,146 |
|
$ |
(42,391,158 |
) |
$ |
90,091,995 |
|
Foreign currency translation |
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
1,413,937 |
|
|
- |
|
|
1,413,937 |
|
Share-based compensation |
- |
|
|
- |
|
|
- |
|
|
- |
|
|
178,149 |
|
|
- |
|
|
- |
|
|
178,149 |
|
Loss for the period |
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
(2,561,669 |
) |
|
(2,561,669 |
) |
Balance at March 31, 2024 |
535,270,712 |
|
$ |
128,394,652 |
|
$ |
- |
|
$ |
2,007,665 |
|
$ |
889,839 |
|
$ |
2,783,083 |
|
$ |
(44,952,827 |
) |
$ |
89,122,412 |
|
Cornish Metals (TSXV:CUSN)
Gráfica de Acción Histórica
De May 2024 a Jun 2024
Cornish Metals (TSXV:CUSN)
Gráfica de Acción Histórica
De Jun 2023 a Jun 2024