TIDMCOBR
RNS Number : 3694M
Cobra Resources PLC
21 September 2021
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21 September 2021
Cobra Resources plc
("Cobra" or "the Company")
Half Year Results
Cobra, a gold exploration company focused on the Wudinna Gold
Project in South Australia, announces its results for the six
months ended 30 June 2021 ("H1 2021").
Key Highlights:
-- Rupert Verco, a highly experienced South Australian mining
specialist, appointed as Chief Executive Officer in July 2021
-- Executed a successful geochemical sampling programme in H1
2021, providing more detailed information on the orientation and
continuity of known mineralisation, as well as refining drill
targets for priority exploration targeting
o The drilling programme in H1 2021 included 138 holes across
two targets
o Post period-end, the Company has drilled a further 875 holes
across eight priority targets
-- The results of the geochemical sampling programme are being
assayed and interpreted. They will underpin the design of the
Reverse Circulation ("RC") drilling programme, expected to commence
around late-October
-- The Company's ongoing exploration activities are progressing
to plan, with Cobra well-placed to achieve the stage 2 earn-in for
the Wudinna Gold Project before the end of 2021, resulting in the
Company increasing its ownership of the project to 65%
Greg Hancock, Chairman of Cobra, commented:
"The first half of 2021 has been a period of detailed data
collection and analysis. It has helped consolidate the geological
models and will provide an excellent springboard for planned
exploration activities. The determination of key pathfinder
elements and their confirmation in saprolite provides a
cost-effective and strategic exploration methods from which we can
prioritise our exploration targets, including some exciting IOCG
prospects. The Company has executed material progress in the first
half and is now very well positioned as we move into the next phase
of exploration."
The full financial statements can be viewed on the Company's
website: https://cobraplc.com/category/financial-reports/
Enquiries:
Cobra Resources plc via Vigo Consulting
Rupert Verco (Australia) +44 (0)20 7390 0234
Dan Maling (UK)
SI Capital Limited (Joint Broker)
Nick Emerson
Sam Lomanto +44 (0)1483 413 500
Peterhouse Capital Limited (Joint
Broker)
Duncan Vasey
Lucy Williams +44 (0)20 7469 0932
Vigo Consulting (Financial Public
Relations)
Ben Simons
Fiona Hetherington
Kendall Hill +44 (0)20 7390 0234
About Cobra
Cobra's Wudinna Gold Project is located in the Gawler Craton
which is home to some of the largest IOCG discoveries in Australia
including Olympic Dam, as well as Prominent Hill and Carrapateena.
Cobra's Wudinna tenements contain extensive orogenic gold
mineralisation and are characterised by potentially open-pitable,
high-grade gold intersections, with ready access to nearby
infrastructure. In total Cobra has over 22 orogenic gold prospects,
with grades of between 16 g/t up to 37.4 g/t outside of the current
211,000 oz JORC resource, as well as one copper-gold prospect, and
four IOCG targets.
Wudinna Project Description
The Eyre Peninsula Gold Joint Venture comprises a 1,928 km(2)
land holding in the Gawler Craton. The Wudinna Gold Project within
the Joint Venture tenement holding comprises a cluster of gold
prospects which includes the Barns, White Tank and Baggy Green
deposits.
Operational Review
In the first six months of 2021, Cobra focused on building on
the encouraging results of the 2020 RC drilling programme, which
realised one of the largest high-grade intersections in the Wudinna
Gold Project's history. The Company has progressed in the first
half of 2021 with advanced geochemical sample collection and
analysis in order to quantify the orientation and continuity of
known mineralisation, as well as to further refine priority
exploration targets.
Despite a booming exploration market in Australia, combined with
travel restrictions related to the COVID-19 pandemic, making access
to sampling rigs challenging, the Company successfully completed
the following sampling programmes in the period:
Calcrete infill sampling multi-element analysis of Barns and
White Tank Resources:
-- Successfully obtained 99 samples at Barns deposit, confirming
the orientation of mineralisation
-- Executed drilling of 39 holes at White Tank, also confirming orientation of mineralisation
The drilling programme continued into the second half, with the
following results:
-- Drilling of 185 holes [for 2,548 metres] at Clarke via RAB
drilling, confirming the orientation and continuity of
mineralisation
-- Drilling of 252 holes [for 1,299 metres] at Baggy Green via
sonic/RAB drilling, confirming current geological interpretations
at Baggy Green North and South
-- Drilling of 130 holes [for 1,963 metres] at Benaud via
aircore, to define priority RC drill targets
-- Drilling of 192 holes [for 302.5 metres] at Barns via
aircore, to test east-west calcrete anomaly and define resource
extensions
-- Drilling of 51 holes [for 453 metres] at Laker via aircore,
to test for granitoid margins, define RC targets and test for
anomolus copper
-- Drilling of 67 holes [for 766.5 metres] at IOCGs 1-3 via
aircore, to test baseline IOCG geochemistry
The data collected from this programme is currently undergoing
detailed geochemical analysis and will be used in the design of the
4,000 metre RC drilling programme, which the Company expects to
commence in late-October.
As we move into the second half, drilling and exploration is
progressing well, and in line with the Company's expectations. As
such, the Company expects to achieve the Stage 2 expenditure
commitment, as agreed in the Heads of Terms agreement with
Andromeda Pty Ltd ("Andromeda"), that will result in Cobra
increasing its ownership of the Wudinna Project from 50% to 65%.
The Company hopes to have confirmed this milestone by the end of Q4
calender year 2021.
During the first half of 2021, an Electronic Programme for
Environmental Protection & Reconciliation ("EPEPR") application
was prepared for the Company's Prince Alfred Copper project, to
enable ongoing exploration. The EPEPR has been submitted and is
currently being assessed.
Corporate Development
Global gold markets have remained strong during the COVID-19
pandemic and the economic outlook is favourable. Furthermore, there
is a strong economic outlook for copper, a key metal in green
technologies such as electric vehicles.
The Company is focused on the Wudinna Project. However, being an
active explorer with a substantial tenement holding in the Central
Gawler Craton, management receives and reviews additional project
opportunities on an ongoing basis as they arise. The Company will
continue to be highly selective in these opportunities, and only
look for those that are best in class and deliver long-term
shareholder value.
In the period, the Company completed a planned move of the
technical office from Perth to Adelaide. The new office location -
in closer proximity to Cobra's key South Australian assets - will
provide a strategic footing when managing its operations.
Financial Review
Cobra reported an unaudited operating loss for the six months
ended 30 June 2021 of GBP 842,631 which equates to a loss per share
for the period of GBP 0. 0025. This compares to a loss for the six
month period to 30 June 2020 of GBP296,424 which equated to a loss
per share for the period of GBP0.0019.
In April 2021, 1,445,713 shares were issued to Hagstrom Drilling
following drilling on the Wudinna Project across 2019 and 2020, and
in line with the Hagstrom Equity agreement which was announced in
August 2020.
As at 30 June 2021, the Company had available cash of GBP1.12m
(30 June 2020: GBP627,696), sufficient for the Company to execute
its planned exporation activities.
Outlook
Cobra's immediate focus for the second half is to execute its
planned exploration activites. Initially this will involve the
completion of the 875 hole geochemical Reverse Air Core (RAB)
sampling programme. The results of the geochemical programme,
coupled with a ground gravity survey, will inform the design of a
4,000m RC programme commencing late-October that will follow up
previous results at Clarke, resource extensions at Barns and Baggy
Green and, pending results, the maiden drilling of IOCG targets to
confirm their prospectivity.
The first half of 2021 has been a period of detailed data
collection and analysis. It has helped us consolidate our
geological models and will provide an excellent springboard for our
planned exploration activities. The determination of key pathfinder
elements and their confirmation in saprolite provides a
cost-effective and strategic exploration method from which we can
prioritise our exploration targets. The Company has executed
material progress in the first half and we are now very well
positioned as we move into the next phase of exploration.
Greg Hancock
Chairman
21 September 2021
Consolidated Income Statement
6 months 6 months Year ended
to to 31 December
30 June 30 June 2020
2021 2020
Unaudited Unaudited Audited
GBP GBP GBP
Revenue - - -
Other income - - 50,280
Administrative expenses (232,626) (296,424) (1,057,030)
IPO expenses - -- --
Operating loss (232,626) (296,424) (1,006,750)
Loss on derecognition
of financial liability* (610,005) - -
Loss on ordinary activities
before taxation (842,631) (296,424) (1,006,750)
Tax on loss on ordinary - - -
activities
------------ -------------- --------------
Loss for the financial
period attributable
to equity holders (842,631) (296,424) (1,006,750)
------------ -------------- --------------
Loss per share -
see note 4 GBP(0 GBP(0.0019) GBP(0.0035)
Basic and diluted . 0025)
* The loss on derecognition of financial liabilities is a
reflection of the Consideration shares paid to the previous Lady
Alice Mines unit holders upon completion of Stage 1 earn-in as
agreed upon at time of acquisition, and the value of the 31,049,819
shares issued at 2.4p per share as settlement of the liability
during the period.
Consolidated Statement of Comprehensive Income
6 months 6 months Year ended
to to 31 December
30 June 30 June 2020
2021 2020
Unaudited Unaudited Audited
GBP GBP GBP
Loss after tax (842,631) (296,424) (1,006,750)
Items that may subsequently
be reclassified to
profit or loss:
* Exchange differences on translation of foreign
operations (66,640) 25,498 66,916
Total comprehensive
loss attributable
to equity holders
of the parent company (909,271) (270,926) (939,834)
---------- ---------- -------------
Consolidated Statement of Financial Position
6 months 6 months Year ended
to 30 June to 30 31 December
2021 June 2020 2020
Unaudited Unaudited Audited
GBP GBP GBP
Non-current assets
Intangible assets 1,556,680 701,676 1,495,519
Property, plant and
equipment 2,040 2,693 2,400
-------------- -------------- --------------
Total non-current
assets 1,558,720 704,369 1,497,919
-------------- -------------- --------------
Current assets
Trade and other receivables 26,911 46,143 69,408
Cash and cash equivalents 1,121,787 627,694 1,338,851
-------------- -------------- --------------
Total current assets 1,148,698 673,837 1,408,259
-------------- -------------- --------------
Non-current liabilities
Deferred consideration (187,500) (350,066) (322,691)
-------------- -------------- --------------
Current liabilities
Trade and other payables (85,414) (74,785) (169,314)
Deferred consideration (135,191) (28,867) (188,721)
-------------- -------------- --------------
Total current liabilities (220,605) (453,718) (358,035)
-------------- -------------- --------------
Net assets/(liabilities) 2,299,313 924,488 2,225,451
============== ============== ==============
Capital and reserves
Share capital 3,283,845 1,872,692 2,829,566
Share premium 1,093,027 497,376 564,173
Share based payment
reserve 993,448 69,038 1,006,239
Retained losses (3,069,823) (1,538,655) (2,239,982)
Foreign currency
reserve (1,184) 24,037 65,456
-------------- -------------- --------------
Total equity 2,299,313 924,488 2,225,451
-------------- -------------- ==============
Consolidated Statement of Cash Flows
6 months 6 months Year ended
to to 30 June 31 December
30 June 2020 2020
2021
Unaudited Unaudited Audited
GBP GBP GBP
Cash flow from operating
activities
Operating loss (842,631) (296,424) (1,006,750)
Equity settled share
based payment 20,000 - 265,189
Depreciation 360 735 1,028
Foreign exchange (66,640) 25,498 66,916
Change in estimate of
contingent consideration - - 161,346
Loss on derecognition
of financial liability 610,005 - -
Decrease/(increase)/
in receivables 42,496 (8,710) (31,975)
(Decrease)/increase
in payables (137,431) (548,386) (482,725)
Net cash used in operation
activities (373,841) (827,288) (1,026,971)
------------ ------------ -------------
Cash flows from investing
activities
Payments for exploration
and evaluation activities (61,161) (89,433) (883,277)
Net cash (used)/generated
in investing activities (61,161) (89,433) (883,277)
------------ ------------ -------------
Cash flows from financing
activities
Proceeds from issue
of shares 128,044 1,508,514 3,428,384
Transaction costs of
issue of shares - (59,960) (186,961)
Shares issued in lieu - 88,188 -
of fees
Shares issued in lieu 89,894 - -
of cash
Net cash generated from
financing activities 217,938 1,536,742 3,241,423
------------ ------------ -------------
Net (decrease)/increase
in cash and cash equivalents
Cash and cash equivalents (217,064) 620,021 1,331,176
at the beginning of
period 1,338,851 7,675 7,675
------------ ------------ -------------
Cash and cash equivalents
at end of period 1,121,787 627,696 1,338,851
------------ ------------ -------------
Consolidated Statement of Changes in Equity
Share Share Share Retained Foreign Total
capital premium based earnings currency
payment reserve
reserve
GBP GBP GBP GBP GBP GBP
At 31 December
2019 672,335 160,992 69,038 (1,242,232) (1,461) (341,328)
---------- ------------ ---------- ------------ ---------- -------------
Loss for the
period - - - (296,424) - (296,424)
---------- ------------ ---------- ------------ ---------- -------------
Total comprehensive
income - - - (296,424) - (296,424)
---------- ------------ ---------- ------------ ---------- -------------
At 30 June 2020 672,335 160,992 69,038 (1,538,656) (1,461) (637,752)
---------- ------------ ---------- ------------ ---------- -------------
Loss for the
period - - - (710,326) - (710,326)
---------- ------------ ---------- ------------ ---------- -------------
Translation
differences - - - - 66,917 66,917
---------- ------------ ---------- ------------ ---------- -------------
Total comprehensive
income - - - (710,326) 66,917 (643,409)
Share capital
issued 2,157,231 1,537,142 - - - 3,694,373
Cost of share
issue - (1,133,961) - - - (1,133,961)
Share based
payment expired - - (3,833) 3,833 - -
Exercise of
options & warrants - - (17,967) 5,167 - (12,800)
Share warrant
charge - - 947,000 - - 947,000
Share option
charge - - 12,000 - - 12,000
---------- ------------ ---------- ------------ ---------- -------------
At 31 December
2020 2,829,566 564,173 1,006,238 (2,239,982) 65,456 2,225,451
Loss for the
period - - - (842,631) - (842,631)
Translation
differences - - - - (66,640) (66,640)
---------- ------------ ---------- ------------ ---------- -------------
Total comprehensive
income - - - (842,631) (66,640) (909,271)
Share capital
issued 454,279 528,854 - - - 983,133
Cost of share - - - - - -
issue
Transfer of
warrants exercised - - (12,790) 12,790 - -
---------- ------------ ---------- ------------ ---------- -------------
Total contributions
by and distributions
to owners of
the Company 454,279 528,854 (12,790) 12,790 - 983,133
---------- ------------ ---------- ------------ ---------- -------------
At 30 June 2021 3,283,845 1,093,027 993,448 (3,069,823) (1,184) 2,299,313
Half-yearly report notes
1. Half-yearly report
This half-yearly report was approved by the Directors on 21
September 2021.
The information relating to the six month periods to 30 June
2021 and 30 June 2020 are unaudited.
The information relating to the year to 31 December 2020 is
extracted from the audited financial statements of the Company
which have been filed at Companies House and on which the auditors
issued an unqualified audit report. The condensed interim financial
statements have not been reviewed by the Company's auditor.
2. Basis of accounting
The report has been prepared using accounting policies and
practices that are consistent with those adopted in the statutory
financial statements for the period ended 31 December 2020,
although the information does not constitute statutory financial
statements within the meaning of the Companies Act 2006. The
half-yearly report has been prepared under the historical cost
convention.
Going concern
The Company's day-to-day financing is from its available cash
resources.
Post period-end in July 2021, the Company had GBP1.12m of cash
at hand. These funds will enable to Company to execute its planned
exploration campaigns across its key projects within the second
half of the year. The Directors are confident that adequate funding
can be raised as required to meet the Company's current and future
liabilities.
For the reasons outlined above, the Directors are satisfied that
the Company will be able to meet its current and future
liabilities, and continue trading for the foreseeable future, and,
in any event, for a period of not less than twelve months from the
date of approving this report. The preparation of these financial
statements on a going concern basis is therefore considered to
remain appropriate.
These half-yearly financial statements are prepared in
accordance with IAS 34 Interim Financial Reporting as adopted by
the European Union and the Disclosure and Transparency Rules of the
UK Financial Conduct Authority.
This half-year report does not include all the notes of the type
normally included in an annual financial report. Accordingly, this
report should be read in conjunction with the annual report for the
year ended 31 December 2020, which have been prepared in accordance
with International Financial Reporting Standards (IFRS) as adopted
by the European Union.
The Company will report again for the full year to 31 December
2021.
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 the Company's 2019 Annual Report and Financial
Statements. The nature and amounts of such estimates have not
changed significantly during the interim period.
Half-yearly report notes, continued
2. Basis of accounting, continued
Intangible assets
Exploration and development costs
All costs associated with mineral exploration and investments
are capitalised on a project-by-project basis, pending
determination of the feasibility of the project. Costs incurred
include appropriate technical and administrative expenses but not
general overheads. If an exploration project is successful, the
related expenditures will be transferred to mining assets and
amortised over the estimated life of economically recoverable
reserves on a unit of production basis.
Where a licence is relinquished or a project abandoned, the
related costs are written off in the period in which the event
occurs. Where the Group maintains an interest in a project, but the
value of the project is considered to be impaired, a provision
against the relevant capitalised costs will be raised.
The recoverability of all exploration and development costs is
dependent upon the discovery of economically recoverable reserves,
the ability of the Group to obtain necessary financing to complete
the development of reserves and future profitable production or
proceeds from the disposition thereof.
3. Intangible assets
6 months Period Year ended
to to 31 December
30 June 30 June 2020
2021 2020
Unaudited Unaudited Audited
GBP GBP GBP
At Beginning of the
period 1,495,519 612,242 612,242
------------- ---------- -------------
Additions 61,161 89,434 883,277
At End of the period 1,556,680 701,676 1,495,519
------------- ---------- -------------
The Directors undertook an assessment of the following areas and
circumstances that could indicate the existence of impairment:
-- The Group's right to explore in an area has expired, or will
expire in the near future without renewal;
-- No further exploration or evaluation is planned or budgeted
for;
-- A decision has been taken by the Board to discontinue
exploration and evaluation in an area due to the absence of a
commercial level of reserves; or
-- Sufficient data exists to indicate that the book value will
not be fully recovered from future development and production.
Following their assessment, the Directors concluded that no
impairment charge was necessary for the period ended 30 June
2021.
Half-yearly report notes, continued
4. Earnings per share
6 months Period Year ended
to to 31 December
30 June 30 June 2020
2021 2020
Unaudited Unaudited Audited
GBP GBP GBP
These have been calculated (296, 424 (1,006,
on a loss of: (842,631) ) 750 )
-------------- ----------- -------------
The weighted average
number of shares 156,577, 282,956,
used was: 328,384,591 093 585
-------------- ----------- -------------
Basic and diluted GBP(0. GBP(0. GBP(0.
loss per share: 0025 ) 0019 ) 0035 )
-------------- ----------- -------------
5. Events after the reporting period
There were no reportable events after the reporting period other
than those highlighted in the 'Financial Review'.
The Condensed interim financial statements were approved by the
Board of Directors on 21 September 2021.
By order of the Board
Rupert Verco
Chief Executive Officer
21 September 2021
Half-yearly Report
Copies of this half-yearly report are available free of charge
by application in writing to the Company Secretary at the Company's
registered office: 9(th) Floor, 107 Cheapside, London, EC2V 6DN, or
by email to info@london-registrars.co.uk .
Responsibility Statement
We confirm that to the best of our knowledge:
-- The interim financial statements have been prepared in
accordance with International Accounting Standard 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
interim financial information, and a description of the principal
risks and uncertainties for the remaining six months of the year;
and
-- The interim financial information 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.
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September 21, 2021 02:00 ET (06:00 GMT)
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