TIDMCHF
RNS Number : 0463N
Chesterfield Resources PLC
27 September 2021
Chesterfield Resources PLC / EPIC: CHF / Market: LSE / Sector:
Mining
27 September 2021
CHESTERFIELD RESOURCES PLC
("Chesterfield" or the "Company")
Interim Results
Chesterfield Resources PLC, the LSE listed mineral exploration
company with projects in Cyprus and Canada, is pleased to announce
its interim results for the six months ended 30 June 2021.
Chairman's review of year to date
2021 thus far has been another busy period for our company, and
we anticipate that the next six months will bring further
significant news and developments.
Major acquisition in Labrador
The highlight for the period was in June when with the
acquisition of a large and prospective new copper exploration
project in Labrador Canada, called Adeline. Copper is the basic
building block of the decarbonisation/electrification revolution
that is unfolding around us. If global emission targets are to be
met then the mining industry needs to discover considerable new
quantities of copper, by some estimates around 10 million tonnes by
2030. This is a mega-trend for our industry. Copper prices are
likely to be robust over the next decade and many large mining
companies are now keen to increase their exposure to copper.
Our new Adeline copper project is highly unusual since it covers
an entire sedimentary basin, some 44km long. There are few such
basins globally and they are known for yielding large copper
discoveries, in locations such as Zambia, Michigan and Siberia.
Should we make a discovery, or even a partial discovery, our
strategy is to attract the attention of one of the major mining
groups, probably via an earn-in deal. This, we expect, would
increase the value of our company considerably.
The project certainly looks promising. It covers nearly 300
KM(2,) which is over three times the size of our project in Cyprus.
A considerable amount of exploration work has been carried out on
the basin over the last 60 years by various groups, including field
work such as mapping and sampling, as well as high quality aerial
surveys and ground geophysics. Around 250 copper showings have been
identified in the basin, at surface or very close to surface. We
own 100% of the project and view it as a potential game-changer for
our company.
Exploration opportunity
The exploration opportunity for the project is that despite the
rich inventory of data, very little drilling has been done on the
project, because there is no road access. Some drilling was
conducted around ten years ago, but is was rather speculative. Our
approach is to re-analyse the large volume of data using modern
technology and improved understanding of this type of geology.
The analysis programme is now almost complete and has been used
to direct a helicopter-supported field programme of additional
mapping and sampling of specific target areas within the basin. To
save time during the warm summer season, we commenced the analysis
and field programme immediately on completion of the transaction.
As a company we like to move things forward quickly.
The vendor of the project was Altius Minerals, a project
generation and royalty company based in Newfoundland. Altius is
highly regarded in Canada. It has now not only become a strategic
shareholder in Chesterfield, but also an operational partner. Its
team has assisted with much of the data preparation and also in
rapidly organising the field programme. In addition, Altius has
also helped bring together a first-class team of specialists and
local experts for the project. The principal objective of the field
work was to design a diamond drill programme for the winter (when
it is easier to access drill locations on the frozen lakes). By
managing to move very quickly on the data programme and field
programme this summer, we have saved a year of the project roll-out
and so potentially provide a much quicker pay-back for our
shareholders.
Exploration boom in Labrador
Not only is the project large, data-rich and highly prospective,
it is also well located. The province of Labrador was recently
voted the eighth best location in the world for mining investment
by the Fraser Institute. At a time when copper explorers are being
driven to increasingly risky corners of the globe, we have acquired
a project that is in one of the most mining-friendly and best
organised jurisdictions in the world. The project is only around 20
minutes helicopter flight from the service hub of Goose Bay. It is
on a similar latitude to the north of England. The lowest average
winder temperatures are about -12 degrees, which are certainly very
manageable for exploration and mining.
Labrador is currently undergoing something of an exploration
boom in Canada, with a number of notable discoveries pushing up the
equity value of listed junior explorers operating there. Next month
we will be starting a programme of investor relations and share
promotion in Canada. We are expecting that the combination of a
large project in Labrador, copper, Altius as a partner and our
rapid programme roll-out will attract the attention of the Canadian
market, which is very knowledgeable about the mining sector. We
also have the advantage that our Director of Exploration is Dr Neil
O'Brien, a Canadian who is based near Toronto. As the former Head
of Exploration for Lundin Mining, Neil is a well-known and
respected figure in Canadian mining circles. We are expecting that
a focus on the Canadian market will provide a whole new base of
investor interest in our shares which we feel is considerably
undervalued. We are also weighing the possibility of a secondary
listing in Canada next year.
Cyprus programme extended
In Cyprus we commenced a new diamond drilling campaign which has
been extended and is still in progress. We have to report that
there is also a log jam in assay labs. The increase in metals
prices over the last year has led to a surge in exploration
drilling, much of which has been compressed into a short window due
to Covid restrictions. With our extended drill programme and delays
at the lab, realistically our Cyprus drill results are going to be
pushed back to November. We will be providing further updates on
our operations there shortly. However, I pleased to report report
that we have just completed our field program in Labrador, and we
will start to bring results and news from that work programme soon
on specific targets there.
Financially the company is in good shape, having topped up our
tanks with a placement in July. We welcome a number of new
investors to our register and also First Equity as a new joint
broker. We have an exciting six months ahead of us with new
corporate and operational developments in planning. We look forward
to providing value growth for our shareholders.
Financials
As is to be expected with an exploration company, for the
six-month period ended 30 June 2021 the Group is reporting a
pre-tax loss of GBP433,538 (six months ended 30 June 2020:
GBP257,465). The Group's net cash balance as at 30 June 2021 was
GBP1,504,973 (six months ended 30 June 2020: GBP316,478).
Responsibility Statement
We confirm that to the best of our knowledge:
-- the interim financial statements have been prepared in
accordance with International Accounting Standards 34, Interim
Financial Reporting, as adopted by the EU;
-- give a true and fair view of the assets, liabilities,
financial position and loss of the Company;
-- the Interim report includes a fair review of the information
required by DTR 4.2.7R of the Disclosure and Transparency Rules,
being an indication of important events that have occurred during
the first six months of the financial year and their impact on the
set of interim financial statements; and a description of the
principal risks and uncertainties for the remaining six months of
the year; and
-- The Interim report includes a fair review of the information
required by DTR 4.2.8R of the Disclosure and Transparency Rules,
being the information required on related party transactions.
The interim report was approved by the Board of Directors and
the above responsibility statement was signed on its behalf by:
Martin French
Executive Chairman
25 September 2021
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have
been deemed inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 until the release of this
announcement.
For further information please visit
www.chesterfieldresourcesplc.com or contact:
Chesterfield Resources Martin French, Executive Tel: +44 (0) 7901
plc Chairman 552277
Panmure Gordon (UK) John Prior & Hugh Rich Tel: +44 (0) 207 886
Limited (Broker) 2500
-------------------------- ----------------------
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
6 months 6 months
to 30 June to 30 June
2021 Unaudited 2020 Unaudited
Notes GBP GBP
------------------------------------------------ ------- ----------------- -----------------
Continuing operations
Revenue - -
Administration expenses (433,538) (257,465)
Operating loss (433,538) (257,465)
------------------------------------------------ ------- ----------------- -----------------
Income tax - -
------------------------------------------------ ------- ----------------- -----------------
Loss for the period (433,538) (257,465)
------------------------------------------------ ------- ----------------- -----------------
Other comprehensive income
Items that may be reclassified to profit
or loss
Currency translation differences (75,349) 78,387
Total comprehensive income for the period (508,887) (179,078)
------------------------------------------------ ------- ----------------- -----------------
Total comprehensive income for the period
attributable to equity holders (508,887) (179,078)
Earnings per share from continuing operations
attributable to the equity owners of the
parent
------------------------------------------------ ------- ----------------- -----------------
Basic and diluted 5 (0.425)p (0.416)p
------------------------------------------------ ------- ----------------- -----------------
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at As at As at
30 June 31 December 30 June
2021 Unaudited 2020 Audited 2020 Unaudited
Notes GBP GBP GBP
------------------------------------ --------- ----------------- --------------- -----------------
Non-Current Assets
Property, plant and equipment 29,160 12,707 15,056
Intangible assets 6 2,847,310 2,433,876 1,913,612
------------------------------------ --------- ----------------- --------------- -----------------
2,876,470 2,446,583 1,928,668
------------------------------------ --------- ----------------- --------------- -----------------
Current Assets
Trade and other receivables 154,325 128,498 83,148
Cash and cash equivalents 1,504,973 2,438,856 316,478
------------------------------------ --------- ----------------- --------------- -----------------
1,659,298 2,567,354 399,626
------------------------------------ --------- ----------------- --------------- -----------------
Total Assets 4,535,768 5,013,937 2,328,294
------------------------------------ --------- ----------------- --------------- -----------------
Non-Current Liabilities
Deferred tax liabilities (127,451) (127,450) (127,450)
------------------------------------ --------- ----------------- --------------- -----------------
Current Liabilities
Trade and other payables (162,912) (200,619) (41,895)
Total Liabilities (290,363) (328,069) (169,345)
------------------------------------ --------- ----------------- --------------- -----------------
Net Assets 4,245,405 4,685,868 2,158,949
------------------------------------ --------- ----------------- --------------- -----------------
Capital and Reserves Attributable
to
Equity Holders of the Company
Share capital 199,911 199,711 159,933
Share premium 6,492,731 6,482,931 3,534,597
Other reserves 184,851 201,776 54,026
Retained losses (2,632,088) (2,198,550) (1,589,607)
------------------------------------ --------- ----------------- --------------- -----------------
Total Equity 4,245,405 4,685,868 2,158,949
------------------------------------ --------- ----------------- --------------- -----------------
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS'
EQUITY
Attributable to owners
of the Parent
------- ---------- --------------------------------------- -----------
Share Share Other Retained Total
capital premium reserves losses equity
Note GBP GBP GBP GBP GBP
---------- -----------
Balance as at 1 January 2020 159,933 3,534,597 (20,003) (1,336,500) 2,338,027
-------------------------------------------- ---------- ----------- ----------- ------------- -----------
Loss for the period - - - (257,465) (257,465)
-------------------------------------------- ---------- ----------- ----------- ------------- -----------
Other comprehensive income
for the year
Items that may be subsequently
reclassified to profit or
loss
----------------------------------- ------- ---------- ----------- ----------- ------------- -----------
Currency translation differences - - 78,387 - 78,387
-------------------------------------------- ---------- ----------- ----------- ------------- -----------
Total comprehensive income
for the year - - 78,387 (257,465) (179,078)
-------------------------------------------- ---------- ----------- ----------- ------------- -----------
Expiry of options - - (4,358) 4,358 -
-------------------------------------------- ---------- ----------- ----------- ------------- -----------
Total transactions with owners,
recognised in equity - - (4,358) 4,358 -
-------------------------------------------- ---------- ----------- ----------- ------------- -----------
Balance as at 30 June 2020 159,933 3,534,597 54,026 (1,589,607) 2,158,949
-------------------------------------------- ---------- ----------- ----------- ------------- -----------
Balance as at 1 January 2021 199,711 6,482,931 201,776 (2,198,550) 4,685,868
-------------------------------------------- ---------- ----------- ----------- ------------- -----------
Loss for the period - - - (433,538) (433,538)
-------------------------------------------- ---------- ----------- ----------- ------------- -----------
Other comprehensive income
for the year
Items that may be subsequently
reclassified to profit or
loss
----------------------------------- ------- ---------- ----------- ----------- ------------- -----------
Currency translation differences - - (75,349) - (75,349)
-------------------------------------------- ---------- ----------- ----------- ------------- -----------
Total comprehensive income
for the year - - (75,349) (433,538) (508,887)
-------------------------------------------- ---------- ----------- ----------- ------------- -----------
Grant of options - - 58,424 - 58,424
-------------------------------------------- ---------- ----------- ----------- ------------- -----------
Option exercise 200 9,800 - - 10,000
-------------------------------------------- ---------- ----------- ----------- ------------- -----------
Total transactions with owners,
recognised in equity 200 9,800 58,424 - 68,424
-------------------------------------------- ---------- ----------- ----------- ------------- -----------
Balance as at 30 June 2021 199,911 6,492,731 184,851 (2,632,088) 4,245,405
-------------------------------------------- ---------- ----------- ----------- ------------- -----------
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
6 months 6 months
to 30 June to 30 June
2021 2020 Unaudited
Notes Unaudited GBP
GBP
-------------------------------------------- --------- ------------- -----------------
Cash flows from operating activities
Loss before taxation (433,538) (257,465)
Adjustments for:
Share based payments 58,424 -
Depreciation 1,147 6,703
Increase/(decrease) in trade and other
receivables 10,473 6,348
Increase in trade and other payables (74,008) (27,061)
Foreign exchange 5,973 6,185
Net cash used in operations (431,529) (265,290)
--------------------------------------------- --------- ------------- -----------------
Cash flows from investing activities
Purchase of property, plant & equipment (18,115) -
Exploration and evaluation activities 6 (494,239) (166,828)
--------------------------------------------- --------- ------------- -----------------
Net cash used in investing activities (512,354) (166,828)
--------------------------------------------- --------- ------------- -----------------
Cash flows from financing activities
Option exercise 10,000 -
-------------------------------------------- --------- ------------- -----------------
Net cash generated from financing
activities 10,000 -
-------------------------------------------- --------- ------------- -----------------
Net decrease in cash and cash equivalents (933,883) (432,118)
Cash and cash equivalents at beginning
of period 2,438,856 748,596
Cash and cash equivalents at end of
period 1,504,973 316,478
--------------------------------------------- --------- ------------- -----------------
NOTES TO THE INTERIM FINANCIAL STATEMENTS
1. General Information
Chesterfield Resources plc is a minerals company exploring
primarily for copper and gold in Cyprus and listed on the Standard
segment of the Main Market of the London Stock Exchange.
The Company is domiciled in the United Kingdom and incorporated
and registered in England and Wales, with registration number
10545738. The Company's registered office is Suite 1, 15 Ingestre
Place, London W1F 0DU, United Kingdom
2. Basis of Preparation
The condensed interim financial statements have been prepared in
accordance with IAS 34 "Interim Financial Statements" as adopted by
the United Kingdom and the Disclosure and Transparency Rules of the
UK Financial Conduct Authority. The condensed interim financial
statements should be read in conjunction with the annual financial
statements for the period ended 31 December 2020, which have been
prepared in accordance with International Financial Reporting
Standards (IFRS) as adopted by the United Kingdom.
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
International Financial Reporting Standards (IFRS) as adopted by
the United Kingdom.
Statutory financial statements for the period ended 31 December
2020 were approved by the Board of Directors on 29 April 2021 and
delivered to the Registrar of Companies. The report of the auditors
on those financial statements was unqualified with an emphasis of
matter paragraph in respect of the impact of COVID-19. The
condensed interim financial statements are unaudited and have not
been reviewed by the Company's auditor.
Going concern
The Group is managing the impact of the COVID-19 pandemic on its
business and the uncertainty it creates. The Company has taken
swift pre-emptive action to ensure the safety of its employees,
contractors and supply chain. This includes a full financial and
strategic review designed to safeguard and ensure the stability and
longevity of Chesterfield's activities for the benefit for all its
stakeholders.
The Directors, having made appropriate enquiries, consider that
adequate resources exist for the Company to continue in operational
existence for the foreseeable future and that, therefore, it is
appropriate to adopt the going concern basis in preparing the
condensed interim financial statements for the period ended 30 June
2021. Further to this, the Directors believe the Group is in a
strong position to endure ongoing uncertainty from COVID-19 however
the risk remains for short term market volatility and uncertain
long-term impacts which may affect the Groups ability to raise
further funding in the future.
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 2020
Annual Report and Financial Statements, a copy of which is
available on the Company's website:
www.chesterfieldresourcesplc.com . The key financial risks are
liquidity risk, credit risk, interest rate risk and fair value
estimation.
Critical accounting estimates
The preparation of condensed 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 2 of the Company's 2020 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 interim financial statements as were applied in the
preparation of the Company's annual financial statements for the
period ended 31 December 2021.
3.1 Changes in accounting policy and disclosures
(a) New and amended standards mandatory for the first time for
the financial year beginning 1 January 2021
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 2021 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
The standards and interpretations that are issued, but not yet
effective, up to the date of issuance of the condensed interim
financial statements are listed below. The Company intends to adopt
these standards, if applicable when they become effective.
Standard Impact on initial application Effective date
--------------------- ----------------------------------- ----------------
IFRS 3 Reference to Conceptual Framework 1 January 2022
----------------------------------- ----------------
IAS 37 Onerous contracts 1 January 2022
----------------------------------- ----------------
IAS 16 Proceeds before intended use 1 January 2022
----------------------------------- ----------------
Annual improvements 2018-2020 Cycle 1 January 2022
----------------------------------- ----------------
IAS 8 Accounting estimates 1 January 2023
----------------------------------- ----------------
IAS 1 Classification of Liabilities 1 January 2023
as Current or Non-Current.
----------------------------------- ----------------
*Not yet endorsed by the EU.
The Company is evaluating the impact of the new and amended
standards above. The Directors believe that these new and amended
standards are not expected to have a material impact on the
Company's results or shareholders' funds.
4. Dividends
No dividend has been declared or paid by the Company during the
six months ended 30 June 2020 (six months ended 30 June 2020:
GBPnil).
5. Loss per Share
The calculation of loss per share is based on a retained loss of
GBP433,538 for the six months ended 30 June 2021 ( six months ended
30 June 2020: GBP 257,465 ) and the weighted average number of
shares in issue in the period ended 30 June 2021 of 102,095,642 (
six months ended 30 June 2020: 61,933,334 ).
No diluted earnings per share is presented for the six months
ended 30 June 2021 or six months ended 30 June 2020 as the effect
on the exercise of share options would be to decrease the loss per
share.
6. Intangible fixed assets
The movement in capitalised exploration and evaluation costs
during the period was as follows:
Exploration & Evaluation at Cost and Net Book Value GBP
------------------------------------------------------ -----------
Balance as at 1 January 2021 2,433,876
Additions 494,239
Foreign exchange (80,805)
As at 30 June 2021 2,847,310
------------------------------------------------------ -----------
7. Events after the balance sheet date
On 1 July 2021 the Company acquired 87986 Newfoundland and
Labrador Inc ("the Acquisition"). The consideration for the
Acquisition was satisfied by the issue 10,089,199 ordinary shares
at a price of 10 pence per share and warrants over 11,100,000
Ordinary Shares, exercisable for three years from completion at an
exercise price of GBP0.20 per new Ordinary Shares.
On 2 July 2021 the Company issued 8,000,000 new ordinary shares
in the capital of the Company at a placing price of 10 pence per
share for a total cash value of GBP800,000.
On 2 July 2021 the Company issued 2,400,000 options which vest
immediately, expire in 5 years and with an exercise price of 12
pence per share.
On 8 September 2021 the Company issued 120,000 ordinary shares
for the exercise of options at a price of 5 pence per share for a
total cash value of GBP6,000.
8. Approval of interim financial statements
The Condensed interim financial statements were approved by the
Board of Directors on 26 September 2021.
**ENDS**
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