TIDMXTR
RNS Number : 6003N
Xtract Resources plc
30 September 2021
For immediate release
30 September 2021
Xtract Resources Plc
("Xtract" or "the Company")
Unaudited Interim Results for the six months ended 30 June
2021
Xtract Resources Plc (AIM: XTR), the gold producer, exploration
and development company with projects in Australia, Mozambique and
Zambia, announces an update of operations and projects and its
unaudited interim results for the six months ended 30 June 2021
("Period").
Highlights
Financial
-- Revenue from gold sales of GBP0.16m (H1 2020: GBP0.61m)
-- Net loss of GBP2.204m (H1 2020: GBP0.19m)
-- Administration & operating expenses GBP2.19m (including a
share-based payment charge of GBP1.47m (H1 2020: GBP0.62m)
-- Cash of GBP8.08m (FY 2020: GBP0.14m)
-- Net assets of GBP21.45m (FY 2020: GBP10.74m)
-- Total alluvial mining contractor gold production of 22.1 kg
(equivalent to 711 ounces) (H1 2020: 32.1kg (equivalent to 1,033
ounces))
-- Total of 6.2 Kg (equivalent to 199 ounces) attributable to
the Company's Mozambican operating subsidiary, Explorator (H1 2020:
9.0kg (equivalent to 289 ounces))
Operational
-- Results from Phase-One drilling and an Induced polarization
(IP) MIMDAS survey have provided significant potential to upgrade
the known inferred mineral resources at the Bushranger copper-gold
project within a world-class mining district in New South Wales,
Australia
-- Completed drilling and analysis of drillcore at the Eureka
project in Zambia confirmed the extension of the Eureka mineralised
zone to the north-west - beyond 300m and still open
-- Reconnaissance drilling at the Kalengwa project has confirmed
zones of copper-gold mineralization up to 100m away from known
areas of historic mining
Corporate
-- Total of GBP10.5m (before expenses) raised through equity placings
Operational Overview
During the period the company released significant results on
its copper-gold portfolio, including the definition of areas in
which to expand currently known mineral resources on their
Bushranger copper-gold porphyry deposit within Australia's
world-class Lachlan Fold Belt district of New South Wales, and the
Eureka copper-gold rich structural corridor to the West of the
Zambian Copper Belt.
Phase One drilling was completed at the Bushranger project in
New South Wales for a completed meterage of just over 5,000m. The
initial results of the programme have proven very exciting with
intercepts of mineralization comparable to Alkane's Boda
copper-gold discovery 170km away from the Racecourse deposit. The
results of hole BRDD-20-001 which was drilled down-plunge of the
resource included an overall intercept of 920m @ 0.33% CuEq from
110m downhole. An induced polarization (IP) MIMDAS survey flown at
Bushranger generated a number of co-incident chargeability and
resistivity anomalies with potential to extend the known inferred
mineral resources at the project which are being tested by the
Phase Two Drilling programme.
Fifteen shallow drill holes were drilled at the Eureka Project,
totaling 1,089m of drilling and designed to test for extensions of
the near-vertical mineralisaed zone. Results have extended the
strike-length of known mineralization beyond 300m to the
north-west, with exceptional results, and is still open.
Following positive results from a desk-based data compilation
exercise on the Kalengwa project, a reconnaissance diamond drilling
programme of six short vertical holes was designed to test a
shallow zone of mineralization just south of a historic open pit.
An intercept of 69m at 0.88% Cu and 2.59 g/t Au was returned from
9m depth in drillhole KXD-006, which is 100m to the south of the
pit.
The Manica hard rock project continued to progress
satisfactorily despite COVID-19 restrictions in Mozambique and
South Africa.
The results from the alluvial operations during the period
reflected the difficult operating conditions.
Summary of Company Projects
Australia
Bushranger project
The Phase One drilling programme at the Racecourse deposit was
completed in April 2021 for a total of just over 5,000m of drilling
in six holes (BRDD-21-001 to BRDD-21-006). The objective of the
Phase One drilling programme was to extend the known estimated
mineral resources down plunge to the North-West and at depth. The
five holes which were completed (one hole was abandoned due to
excessive deviation) all intersected the zoned Racecourse porphyry
copper alteration-mineralisation system. A JORC (2012) compliant
inferred mineral resource of 71Mt @ 0.44% Cu and 0.064 g/t Au at a
0.3% Cu cut-off has been estimated at the Racecourse prospect,
which is believed to be one of the largest currently undeveloped
porphyry deposits in the Lachlan Fold Belt of New South Wales,
Australia, and which does not include the latest drilling.
All drillholes intersected wider mineralised zones than
anticipated in the form of disseminated and fracture-fill
chalcopyrite, accompanied by pyrrhotite and pyrite and confirm that
the Racecourse copper mineralisation increases in width towards the
northwest beyond the existing Inferred Mineral Resource. Assay
results from all completed holes (BRDD-20-001, BRDD-21-002,
BRDD-21-003, BRDD-21-005, & BRDD-21-006)) were received within
the reporting period and were very encouraging.
Hole BRDD-20-001 was drilled down-plunge of the deposit and
returned an overall intersection of 920m @ 0.3% Cu, 0.02g/t Au and
1.45g/t Ag (0.33% CuEq) from 110m. Higher-grade zones within the
overall mineralised envelope included 156m @ 0.48% Cu, 0.04g/t Au
& 2.44g/t Ag (0.52% CuEq) from 110m and 44m @ 0.50% Cu, 0.05g/t
Au & 1.92/t Ag (0.55% CuEq) from 504m.
All other drillholes were drilled obliquely across the deposit
to test the width of the porphyry system and for extensions of
mineralization to the northwest. The following is a summary of the
significant mineralisaed intervals from the Phase One
Programme;
- BRDD-21-001: 920m @ 0.33% CuEq from 110m
o Including 156m @ 0.52% CuEq from 110m
o And 44m @ 0.55% CuEq from 504m
- BRDD-21-002: 362m @ 0.2% CuEq from 422m
o Including 14m @ 0.36% CuEq from 500m
o And 26m @ 0.32% CuEq from 638m
- BRDD-21-003: 200m @ 0.2% CuEq from 598m
o Including 68m @ 0.26% CuEq from 676m
o And 16m @ 0.31% CuEq from 714m
- BRDD-21-005 returned 112m @ 0.22% CuEq from 716m
o including 34m @ 0.28% CuEq from 736m
o and 10m @ 0.33% CuEq from 802m
- BRDD-21-006 returned assays of 222m of 0.25% CuEq from 600m
o including 40m @ 0.33% CuEq from 776m
o and 22m @ 0.38% CuEq from 782m
The initial results of the Phase One drilling programme are
exciting and the overall mineral intersection and higher-grade
zones in drill hole BRDD-20-20 compare very favourably with
intercepts reported by Alkane Resources Limited ("Alkane") for
their Boda copper-gold discovery located 170km from Bushranger. The
Phase One results also give significant potential to extend
currently known mineral resources at the Racecourse deposit. There
are further indications that grade may increase towards the surface
within the high-grade mineralized "crown" of the porphyry system,
which could significantly add to the known inferred mineral
resource and enhance the open-pit mining potential of the
project.
External consultants were engaged to build a financial model to
investigate the economics of open pit extraction of the shallower
ore.
An induced Polarisation (IP) MIMDAS geophysical survey was
commissioned at Bushranger to potentially trace copper-gold and
associated sulphide alteration to beyond 1,000m vertical depth and
laterally. The results indicate that the copper-gold mineralisation
comprising the Racecourse Mineral Resource is associated with a
strong IP chargeability response on the southwestern side of the
central porphyry intrusion, which is evident on all survey lines
along 2.5km of strike length. The survey also indicates that the
Racecourse Mineral Resource has the potential to extend in several
directions, including at least 800m to the northwest beyond the
limit of the currently defined mineral resource.
Following the successful results of the Phase One drilling and
(IP) MIMDAS survey at the Bushranger project, a Phase Two programme
is underway to test for higher-grade mineralisation at shallower
depths within the interpreted mineralised "crown" of the porphyry
system which will be influenced by the modelled pit optimisation
design.
Zambia
Eureka
A Phase 2 drilling programme was partially completed in the
first half of the year at the Eureka copper-gold deposit with the
following aims:
-- To test the deposit north-west strike extension suggested by
exploration pitting, thereby demonstrating at least 300m of strike
extent
-- To provide additional information on internal deposit width
and grade to support open pit mine planning
-- To define a copper resource sufficient to support an open pit
mining operation for a minimum of 3 years
15 shallow holes, designated EX-08 to EX-022, totalling 1,089m
were completed by mid-year, mostly angled to cross the
near-vertical mineralised zone. Core from three of these was cut by
diamond saw and sent for assay. These holes were selected as a
priority to provide information on the grade, width and continuity
of the mineral zone in the area of the planned box cut beneath the
shallow historic open pit (EX-022) and to confirm the extension of
the deposit to the north-west (EX-018 & EX-019).
Results confirmed the strike extension of the Eureka mineralised
zone to the north-west - beyond 300m and still open. Assay results
from the first three holes returned exceptional copper grades
beneath the current open pit, averaging 4.42% Cu over 27.0m (circa
18m true width) from 50m depth in angled hole EX-022, including two
9m sub-intervals >6% Cu and 1m >20% Cu.
In the north-west extension, angled hole EX-019 assayed 0.83% Cu
over 18.0m (circa 12m true width), including 1.36% Cu over 8.0m.
The near-vertical mineral zone occurs directly beneath
approximately 9m of overburden/saprolite, suggesting just shallow
pre-stripping will be required. Additional drill assay results were
awaited and it was planned to drill additional holes to further
extend the deposit footprint.
The Company also announced that plans were being prepared to
excavate a box-cut at the base of the current open pit to obtain a
bulk sample and provide break points for benches. Roads in and
around the area were being upgraded to receive heavy vehicles and
allow the transport of ore from site. Tenders were received from
several Zambia-based open pit contractors for the pit
operation.
Kalengwa
The Kalengwa open pit Copper Mine is believed to have been one
of the highest-grade copper mines in Zambia. Total production of
1.9Mt of 9.44% Cu and 50g/t Ag was reported from the open pit over
a 12-year period from 1970 to 1982 resulting in circa 15,000 tonnes
of copper production per annum.
Based on historic drilling, further resources remain unexploited
lateral to the open pit -a non-JORC compliant, resource of 1.45Mt @
2.50% Cu (for 36,300 tonnes of copper metal) is reported. This
historic resource was prepared in 1998 but is not compliant with a
recognised standard and has not been subsequently updated or
verified (Source: African Minerals Ltd, Assessment of Kalengwa
Mine, 1998, as reported by Lunga Resources Ltd, 2013). With focus
on mining of the high-grade core of the deposit, much of the
surrounding ground has only been sparsely drilled within this
brownfield target, including areas within the original soil
geochemical anomaly.
Compilation of historic mine drilling data identified a shallow
zone of semi-consolidated copper oxide mineralisation located just
south of the old open pit. A reconnaissance diamond drilling
programme of six short vertical holes was completed by Xtract.
Based on preliminary testing by hand-held XRF, the most interesting
hole, KXD-006, was initially selected for laboratory assay,
returning results as follows: 69.0m @ 0.88% Cu, 2.59g/t Ag from
9.0m depth, including sub-intervals of 12m @ 1.01% Cu and 17m @
1.07% Cu.
KXD-006 is located about 100m from the open pit and the
intersection is approximately twice the thickness reported in
historic holes. Core from the remaining holes was still being
processed at mid-year. The Company planned to review results from
KXD-006, along with information from the remaining holes, to
prepare for further delineation of the mineralised zone.
In addition, rock dumps from the historic mine workings remain
on site and it was proposed to evaluate these with a view to
reprocessing them to recover copper. Also, further evaluation test
work was planned to confirm the suitability of the Kalengwa mine
tailings for re-treatment.
Mozambique
Mozambique is recognised as a stable mining jurisdiction within
a favourable political and legal regime. The Manica Gold Project is
situated in the Odzi-Mutare-Manica Greenstone belt, with an
estimated 2 million ounces of gold previously mined in the
area.
Operations during the period were adversely affected due to
COVID 19, with most of the mining contactor's key personnel
returning to their homeland for medical treatment or vaccination.
Operations were stopped or seriously curtailed and despite this we
still managed to maintain an operation with production before
operating conditions improved during the second half of the Period.
The Fair Bride Project is an open pit and underground project with
a combined SAMREC compliant resource of 1.262 million ounces
(including 782k ounces Measured and Indicated). In 2019, the
Company was given the opportunity to move the Fair Bride Project
forward, from development stage to production through a
collaboration agreement with Mutapa Mining and Processing LDA ,
thereby mitigating any execution risk to Xtract. The Fair bride
Project continued to progress satisfactorily despite COVID-19
restrictions in Mozambique and South Africa with production
scheduled to commence during the second half of 2021.
The Company has mining contractor agreements in place with
Longhau Tianci Mining Co Ltd ("Longhau") for the exploitation of
the Guy Fawkes and Boa Esperanza hard rock gold deposits at its
Manica mining concession. SAMREC-compliant Indicated and Inferred
Resources of 1.13Mt @ 1.91g/t Au (at a cut-off of 0.5g/t open cut
and 1.5g/t underground were previously reported for Guy Fawkes,
with potential for additional upside in several dimensions. At Boa
Esperanza, a SAMREC-compliant hard rock Inferred Resource gold of
143,000 tonnes @ 0.77g/t Au (at a cut-off of 0.5g/t less 20% mine
depletion) was also previously reported.
Financial
During the Period, administration expenses for the Group
amounted to GBP1.96m (H1 2020 - GBP0.34m). Included within
administration expenses is an amount of GBP1.47m (H1 2020- Nil) in
relation to a share-based payment charge in relation to the grant
of 28.4 million options to directors and employees in February
2021.
Enquiries :
Colin Bird, Executive +44 (0)20 3416
Xtract Resources Plc Chairman 6471
Beaumont Cornish
(Nominated Adviser Michael Cornish
and Felicity Geidt +44 (0)20 7628
Joint Broker) Email: corpfin@b-cornish.co.uk 3369
Novum Securities Limited +44 (0)207 399
(Joint Broker) Colin Rowbury/Jon Belliss 9427
This announcement contains inside information for the purposes
of Article 7 of EU Regulation No. 596/2014 on market abuse. Upon
the publication of this announcement via a Regulatory Information
Service, this inside information is now considered to be in the
public domain. The person who arranged for the release of this
announcement on behalf of the Company was Joel Silberstein,
Director.
Further details are available from the Company's website which
details the company's project portfolio as well as a copy of this
announcement: www.xtractresources.com
Xtract Resources PLC
Consolidated Income Statement
For the six month period ended 30 June 2021
Six months ended Year ended
31 December
30 June 2021 30 June 2020
Unaudited 2020 Unaudited Audited
Notes GBP'000 GBP'000 GBP'000
Continuing operations
Revenue from Gold sales 153 613 1,725
Administrative and operating
expenses (2,191) (627) (2,091)
------------ ------------------------ -----------
Direct Operating (228) (254) (1,006)
Other Operating - (32) (45)
Administration (1,963) (341) (1,040)
------------ ------------------------ -----------
Project expenses (94) (82) (96)
Operating loss (2,132) (96) (462)
Other gains and losses - - (164)
Finance (cost)/income (73) (91) (181)
------------ ------------------------ -----------
(Loss)/profit before tax (2,205) (187) (807)
Taxation - (107)
------------ ------------------------ -----------
(Loss)/profit for the period
from continuing operations 3 (2,205) (187) (914)
(Loss)/profit for the period 6 (2,205) (187) (914)
------------ ------------------------ -----------
Attributable to:
Equity holders of the parent (2,205) (187) (914)
Net (loss)/profit per share
Basic (pence) 6 (0.40) (0.00) (0.20)
============ ======================== ===========
Diluted (pence) 6 (0.40) (0.00) (0.20)
============ ======================== ===========
Xtract Resources PLC
Consolidated statement of comprehensive income
For the six month period ended 30 June 2021
Six months ended Year ended
30 June 31 December
2021 30 June 2020 2020
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
(Loss)/profit for the period (2,205) (187) (914)
---------------- ------------ -----------
Other comprehensive income
Items that will not be reclassified
subsequently to profit and loss
Exchange differences on translation
of foreign operations 112 (11) (210)
Other comprehensive (loss)/income
for the period 112 (11) (210)
Total comprehensive (loss)/income
for the period (2,093) (198) (1,124)
Attributable to:
Equity holders of the parent (2,093) (198) (1,124)
(2,093) (198) (1,124)
================ ============ ===========
Xtract Resources PLC
Consolidated statement of changes in equity
As at 30 June 2021
Share Share Warrant Share-based Available-for-sale Foreign Accumulated Total
Capital premium reserve payments investment currency losses Equity
GBP'000 account GBP'000 reserve reserve translation GBP'000 GBP'000
GBP'000 GBP'000 GBP'000 reserve
GBP'000
--------- --------- ------------- ------------ ------------------- ------------ ------------ -----------
Balance at
31
December
2019 4,892 59,884 54 397 - 276 (54,719) 10,784
--------- --------- ------------- ------------ ------------------- ------------ ------------ ---------
Loss for the
period - - - - - - (187) (187)
Foreign
currency
translation
difference - - - - - (11) - (11)
Issue of
Shares 3 154 - - - - - 157
Share issue - - - - - - - -
costs
Issue of - - - - - - - -
share
options
Expiry of - - - - - - - -
warrants
Exercise of - - - - - - - -
warrants
--------- --------- ------------- ------------ ------------------- ------------ ------------ ---------
Balance at
30
June 2020 4,895 60,038 54 397 - 265 (54,906) 10,743
--------- --------- ------------- ------------ ------------------- ------------ ------------ ---------
Loss for the
period - - - - - - (727) (727)
Foreign
currency
translation
differences - - - - - (199) - (199)
Issue of
Shares 33 1,979 - - - - - 2,012
Share issue
costs - (66) - - - - - (66)
Expiry of
share
options - - - (103) - - 103 -
Issue of
share
options - - - 142 - - - 142
Issue of
Warrants - - 22 - - - - 22
Exercise of - - - - - - - -
warrants
Balance at
31
December
2020 4,928 61,951 76 436 - 66 (55,530) 11,927
--------- --------- ------------- ------------ ------------------- ------------ ------------ ---------
Loss for the
period - - - - - - (2,205) (2,205)
Foreign
currency
translation
difference - - - - - 112 - 112
Issue of
Shares 45 10,104 - - - - - 10,149
Share issue - - - - - - - -
costs
Option
exercised 19 (19)
Issue of
share
options - - - 1,473 - - - 1,473
Issue of
warrants - (456) 456 - - - - -
Exercise of
warrants - 10 (10) - - - - -
Balance at
30
June 2021 4,973 71,628 522 1,890 - 178 (57,735) 21,456
========= ========= ============= ============ =================== ============ ============ =========
Xtract Resources PLC
Consolidated Statement of Financial Position
As at 30 June 2021
30 June 31 December
30 June 2020 2020 Audited
2021 Unaudited Unaudited GBP'000
Notes GBP'000 GBP'000
Non-current assets
Intangible Assets 7 13,622 10,298 11,978
Property, plant & equipment 8 27 24 19
Other financial assets - - -
13,649 10,322 11,997
Current assets
Trade and other receivables 185 443 147
Loan receivable 9 - 142 -
Inventories 9 38 8
Cash and cash equivalents 8,084 146 919
8,278 769 1,074
Total assets 21,927 11,091 13,071
--------------- ---------- -------------
Current liabilities
Trade and other payables 453 348 1,051
Current tax payable 18 - 93
Other payables - - -
471 348 1,144
Non-current liabilities
Other payables - - -
- - -
Total liabilities 471 348 1,144
Net current assets/(liabilities) 7,807 421 (70)
Net assets 21,456 10,743 11,927
=============== ========== =============
Equity
Share capital 10 4,973 4,895 4,928
Share premium account 71,628 60,038 61,951
Warrant reserve 522 54 76
Share-based payments reserve 1,890 397 436
Fair Value reserve - - -
Foreign currency translation
reserve 178 265 66
Accumulated losses (57,735) (54,906) (55,530)
Equity attributable to equity
holders of the parent 21,456 10,743 11,927
Total equity 21,456 10,743 11,927
=============== ========== =============
Xtract Resources PLC
Consolidated Statement of Cash Flows
For the six month period ended 30 June 2021
6 months
period ended 6 months Year ended
30 June period ended 31 December
2021 30 June 2020 2020
Unaudited Unaudited Audited
Notes GBP'000 GBP'000 GBP'000
Net cash used in operating activities 11 (1,455) (153) 189
------------- ------------- -------------
Investing activities
Acquisition of subsidiary undertaking - - 36
Acquisition of intangible fixed
assets (1,524) (62) (287)
Acquisition of tangible fixed assets (5) - -
Net cash from/(used in) investing
activities (1,529) (62) (251)
-------------
Financing activities
Proceeds on issue of shares 10,149 - 636
- - -
Net cash from financing activities 10,149 - 636
-------------
Net increase/(decrease) in cash
and cash equivalents 7,165 (215) 574
Cash and cash equivalents at beginning
of period 919 361 361
Effect of foreign exchange rate
changes - - (16)
-------------
Cash and cash equivalents at end
of period 8,084 146 919
------------- ------------- -------------
Xtract Resources PLC
Notes to the interim financial information
For the six month period ended 30 June 2021
1. General information
Xtract Resources PLC ("Xtract") is a company incorporated in
England and Wales under the Companies Act 2006. The Company's
registered address is 1(st) Floor, 7/8 Kendrick Mews, London, SW7
3HG. The Company's ordinary shares are traded on the AIM market of
the London Stock Exchange. The Company invests and engages in the
management, financing and development of early stage resource
assets.
2. Accounting policies
Basis of preparation
Xtract prepares its annual financial statements in accordance
with International Financial Reporting Standards (IFRSs) as adopted
by the European Union (EU).
The consolidated interim financial information for the period
ended 30 June 2020 presented herein has been neither audited nor
reviewed. The information for the period ended 31 December 2020
does not constitute statutory accounts as defined in section 434 of
the Companies Act 2006 but has been derived from those accounts.
The auditor's report on those accounts was not qualified and did
not contain statements under section 498 (2) or (3) of the
Companies Act 2006. As permitted, the Group has chosen not to adopt
IAS 34 'Interim Financial Reporting'.
The interim financial information is presented in pound sterling
and all values are rounded to the nearest thousand pounds (GBP'000)
unless otherwise stated.
The interim consolidated financial information of the Group for
the six months ended 30 June 2021 were authorised for issue by the
Directors on 29 September 2021.
Going concern
As at 30 June 2021 the Group held cash balances of GBP8,084K. An
operating loss has been reported for the Group, however, as at the
date of the release of the consolidated financial information, the
Group's assets have been and continue to generate revenues.
As is common with junior mining companies, the Company in the
past has raised finance from shareholders for its activities, in
discrete tranches to finance its activities for limited periods
only and further funding would be required from time to time to
finance those activities.
During the first half of 2021, the Group raised a total of
GBP10.5 million before expenses.
The Directors have assessed the working capital requirements for
the forthcoming twelve months and have undertaken the following
assessment.
Upon reviewing those cash flow projections for the forthcoming
twelve months, the Directors would not expect for funds to be
raised through equity raisings, or require additional financial
resources in the twelve-month period from the date of authorising
the consolidated information to enable the Company to fund its
current operations and to meet any future commitments in the event
that the Company decides to continue with further exploration work
including drilling campaigns in Australia and Zambia.
The Directors therefore continue to adopt the going concern
basis of accounting in preparing the consolidated financial
information and therefore the consolidated financial information
does not include any adjustments relating to the recoverability and
classification of assets and liabilities that may be necessary if
the going concern basis of preparation of the consolidated
financial information is not appropriate.
On this basis the Board believes that it is appropriate to
prepare the consolidated financial information on the going concern
basis.
Changes in accounting policy
The accounting policies applied are consistent with those
adopted and disclosed in the Group Consolidated financial
statements for the year ended 31 December 2020, except for the
changes arising from the adoption of new accounting pronouncements
detailed below.
There are no amendments or interpretations to accounting
standards that would have a material impact on the financial
statements.
3. Business segments
Segmental information
The divisions on which the Group reports its primary segment
information are reported to its Executive Chairman, who is the
Chief Operating Decision maker of the Group. The Executive Chairman
and the Chief Operating Officer are responsible for allocating
resources to the segments and assessing their performance.
Principal activities are as follows:
-- Operating alluvial gold mining segment - Mozambique
-- Mine Development - Mozambique
-- Exploration
-- Investment and other
Segment results
6 months ended 30 Alluvial
June 2021 Mine Exploration Investment Gold Mining
Development (Continuing) And Other Production
(Continuing) (Continuing) (Continuing) Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Segment revenue
Sale of gold bars - - - 153 153
Less: Cost of sales - - - - -
---------------- --------------- --------------- --------------- ---------------
Segment Gross profit - - - 153 153
---------------- --------------- --------------- --------------- ---------------
Administrative and
operating expenses (39) (1,877) (275) (2,191)
Project costs - (94) - (94)
--------------- --------------- --------------- ---------------
Segment result (39) (1,91) (122) (2,132)
--------------- --------------- --------------- ---------------
Other gain and losses - - - -
Finance costs - (69) (4) (73)
--------------- --------------- --------------- ---------------
(Loss)/profit before
tax - (2,040) (126) (2,205)
Tax - - - -
---------------- --------------- --------------- --------------- ---------------
(Loss)/profit for
the period (39) (2,040) (126) (2,205)
=============== =============== =============== ===============
Alluvial
Exploration Investment Gold Mining
Mine Development (Continuing) and Other Production
(Continuing) (Continuing) (Continuing) Total
6 months ended 30
June 2020 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Segment revenue
Sale of gold bars - - - 613 613
Less: Cost of sales - - - - -
------------------ ---------------- -------------- --------------- ----------
Segment Gross profit - - - 613 613
------------------ ---------------- -------------- --------------- ----------
Administrative and
operating expenses - - (372) (255) (627)
Project Costs - - (29) (53) (82)
------------------ ---------------- -------------- --------------- ----------
Segment result - - (401) 305 (96)
Other gain and losses - - - - -
Finance costs - - 117 (208) (91)
------------------ ---------------- -------------- ---------------
(Loss)/profit before
tax - - (284) 97 (187)
Tax - - - - -
------------------ ---------------- -------------- --------------- ----------
(Loss)/Profit for
the period - - (284) 97 (187)
================== ================ ============== =============== ==========
Year ended 31 December 2020
Alluvial
Investment Gold Mining
Mine Development Exploration and Other Production
(Continuing) (Continuing) (Continuing) (Continuing) Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Segment revenue
Sale of gold bars - - - 1,725 1,725
Less: Cost of - -
sales - - -
----------------- --------------- -------------- -------------- ----------
Segment Gross
profit - - - 1,725 1,725
Administrative
and operating expenses (64) - (1,021) (1,006) (2,091)
Project Costs - - (96) - (96)
----------------- --------------- -------------- -------------- ----------
Segment result (64) - (1,117) 719 (462)
----------------- --------------- -------------- -------------- ----------
Other gains and
losses - - (164) - (164)
Finance income
/ (costs) - - (148) (33) (181)
(Loss)/Profit
before tax (64) - (1,429) 686 (807)
Tax - - - (107) (107)
----------------- --------------- -------------- -------------- ----------
(Loss)/Profit for
the period (64) - (1,429) 579 (914)
================= =============== ============== ============== ==========
Balance Sheet 30 June 2021 30 June 2020 31 December 2020
GBP'000 GBP'000 GBP'000
Total Assets
Gold production 125 105 724
Exploration 3,467 - 1,958
Mining Development 10,276 10,299 10,104
Investment & other 8,058 687 285
-------------- -------------- ------------------
Total segment assets 21,927 11,092 13,071
============== ============== ==================
Liabilities
Gold production (243) (161) (635)
Exploration - -
Mining Development (3) - (1)
Investment & other (225) (187) (508)
Total segment liabilities (471) (348) (1,144)
============== ============== ==================
The accounting policies of the reportable segments are the same
as the Group's accounting policies which are described in the
Group's latest annual financial statements. Segment results
represent the profit earned by each segment without allocation of
the share of profits of associates, central administration costs
including directors' salaries, investment revenue and finance
costs, and income tax expense. This is the measure reported to the
Group's Board for the purposes of resource allocation and
assessment of segment performance.
4. Tax
At 30 June 2021, the Group has no deferred tax assets or
liabilities and no income tax is chargeable for the period.
5. Revenue
An analysis of the Group's revenue is as follows:
Six months
ended Year ended
30 June 31 December
2021 30 June 2020 2020
GBP'000 GBP'000 GBP'000
Revenue from gold sales 153 613 1,725
---------------- -------------------------- ------------
153 613 1,725
---------------- -------------------------- ------------
6. Loss per share
The calculation of the basic and diluted loss per share is based
on the following data:
Six months ended Year ended
30 June 31 December
2021 30 June 2020 2020
Losses GBP'000 GBP'000 GBP'000
Losses for the purposes of basic
earnings per share being:
Net loss from continuing operation
attributable to equity holders of
the parent (2,205) (187) (914)
(2,205) (187) (914)
-------------------------------- ----------------------------------- -------------
Number of shares
Weighted average number of ordinary
and diluted shares for the purposes
of basic earnings per share 581,422,831 457,095,606 487,748,658
(Loss)/profit per ordinary share
basic and diluted (pence) (0.40) (0.00) (0.20)
In accordance with IAS 33, the share options and warrants do not
have a dilutive impact on earnings per share, which are set out in
the consolidated income statement. Details of the shares issued
during the period as shown in Note 10 of the Financial
Statements.
7. Intangible assets
Development expenditure
& Mineral exploration Total
GBP'000 GBP'000
===================== ============================== ==========
As at 1 January 2021 11,978 11,978
===================== ============================== ==========
Additions - at fair - -
value (Manica)
Additions - at cost - -
(Manica)
Foreign exchange 172 172
===================== ============================== ==========
Additions - at fair - -
value (Bushranger)
===================== ============================== ==========
Additions - at cost
(Bushranger) 1,233 1,233
===================== ============================== ==========
Foreign exchange (54) (54)
===================== ============================== ==========
Additions - at cost
(Eureka) 235 235
===================== ============================== ==========
Additions - at cost
(Kalengwa) 58 58
===================== ============================== ==========
As at 30 June 2021 13,622 13,622
===================== ============================== ==========
Amortisation
As at 1 January 2021 - -
Charge for the year - -
As at 30 June 2021 - -
===================== ============================== ==========
Net Book value at
1 January 2021 11,978 11,978
===================== ============================== ==========
Net book value at
30 June 2021 11,913 11,913
===================== ============================== ==========
Mozambique
In March 2016, The Company acquired the Manica licence 3990C
("Manica Project") from Auroch Minerals NL. The Manica Project is
situated in central Mozambique in the Beira Corridor. At the time
of acquisition, the project had a JORC compliant resource of 900koz
(9.5Mt@ 3.01g/t) in situ, which has increased to 1.257moz (17.3Mt @
2.2g/t) following an independent technical report completed by
Minxcon (Pty) Ltd in May 2016.
Australia
In November 2020, the Company acquired the Bushranger
copper-gold project ("Bushranger Project") which comprises of four
exploration licences totaling 501km2, located in eastern central
New South Wales, Australia. The Bushranger Project hosts the
Racecourse deposit, a JORC (2012) compliant inferred resource
estimated at 71Mt @ 0.44% Cu and 0.064g/t Au using a 0.3% Cu
cut-off.
Zambia
Kalengwa is located in the North-western province of Zambia 800
km north-west of Lusaka and 400 km south-west of Kitwe. A
large-scale exploration permit 24401-HQ-LEL, was issued on 2 April
2019 and is valid for an initial period of 4 years.
The Kalengwa Copper Mine is believed to have been one of the
highest-grade copper mines in Zambia. A mineralised high-grade
supergene core was reported to have yielded an average grade of 27%
Cu, making up approximately 20% of the ore body, which was trucked
unprocessed to Kitwe for direct smelting. Total production of 1.9
Mt of 9.44% Cu and 50 g/t Ag was reported from the open pit
resulting in circa 15,000 tonnes of copper production per annum for
12 years of production.
8. Property, plant and equipment
Cost or fair value on Mining plant Land & Buildings Furniture Total
acquisition of subsidiary & equipment & Fittings
GBP'000 GBP'000 GBP'000 GBP'000
At 1 January 2021 19 - - 19
Additions - at cost 5 - - 5
Foreign exchange 3 - - 3
-------------- ------------------ ------------- ---------
At 30 June 2021 27 - - 27
-------------- ------------------ ------------- ---------
Depreciation
At 1 January 2021 - - - -
Charge for the period - - - -
-------------- ------------------ ------------- ---------
At 30 June 2021 - - - -
-------------- ------------------ ------------- ---------
Net book value
At 30 June 2021 27 - - 27
-------------- ------------------ ------------- ---------
At 1 January 2021 19 - - 19
-------------- ------------------ ------------- ---------
9. Loan Receivable
As at As at As at
30 June 30 June 2020 31 December 2020
2021 GBP'000 GBP'000
GBP'000
Loan receivable - 133 133
Foreign exchange - 9 (10)
Provision for impairment - - (123)
- 142 -
--------------------------------------- --------------- -------------------
Convertible Loan Agreement - Moz Gold Limitada
On 15 December 2017, the Company agreed to loan a total of
US$700K to Moz Gold to be drawn down in two separate tranches, the
first tranche of US$400K and second tranche of US$300K, with an
interest rate of 30% per annum.
During 2020, management assessed the recoverability and carrying
value of the asset at the year end and given the uncertainties, it
was decided to provide for impairment of the loan.
10. Share capital
As at As at As at
30 June 30 June 2020 31 December 2020
2021 Number Number Number
Issued and fully paid
Ordinary shares of
0.01p each
at 1 January - - -
Share issued during
the period - - -
-------------- -------------- ------------------
Outstanding as at 30
June - - -
Deferred shares of 0.09p
each
As at 1 January 5,338,221,169 5,338,221,169 5,338,221,169
Issued during the period - - -
-------------- -------------- ------------------
5,338,221,169 5,338,221,169 5,338,221,169
============== ============== ==================
Ordinary shares of 0.02p
each
As at 1 January 620,465,144 438,508,052 438,508,052
Issued during the period 224,678,549 18,795,236 181,957,092
-------------- -------------- ------------------
Outstanding as at 30
June 845,143,693 457,303,288 620,465,144
============== ============== ==================
The following Ordinary Shares of 0.02p were issued during the
period:
- Issued 21 January 2021- 111,111,111 at 4.50p per share
- Issued 2 February 2021 - 2,000,000 at 1.85p per share
- Issued 2 February 2021 - 2,103,152 at 5.03p per share
- Issued 4 March 2021 -5,000,000 at 1.85p per share
- Issued 17 March 2021 -2,000,000 at 1.25p per share
- Issued 19 April 2021 -98,214,286 at 5.60p per share
- Issued 21 May 2021 -1,625,000 at 1.20p per share
- Issued 21 June 2021 -2,208,333 at 1.20p per share
- Issued 21 June 2021 -416,667 at 1.85 p per share
The following share options were issued during the period:
- Issued 24 February 2021- 24,800,000 exercisable at 10.00p per share
The following warrants were issued during the year:
- Issued 21 January 2021-5,555,555 exercisable at 4.50p per share
- Issued 19 April 2021 -4,910,714 exercisable at 5.60p per share
- Issued 19 April 2021 -49,107,142 exercisable at 8.50p per share
The total share-based payment expense for the period, charged to
the income statement amounted to GBP1,473K (2020-Nil).
11. Cash flows from operating activities
Six month Six month Year ended
period ended period ended 31 December
30 June 2021 30 June 2020 2020
GBP'000 GBP'000 GBP'000
Profit/(loss) for the period (2,205) (187) (807)
Adjustments for:
Continuing Operations
Depreciation of property, plant -
and equipment - -
Amortisation of intangible assets - - -
Finance costs 72 90 181
Impairment of intangible assets - - -
Other (gains) /losses - - 164
Share-based payments expense 1,473 - 123
-------------
Operating cash flows before movements
in working capital (660) (97) (339)
Decrease/(Increase) in inventories (1) 129 109
(Increase)/decrease in receivables (34) (155) (95)
(Decrease)/increase in payables (602) 12 625
-------------
Cash used in operations (1,297) (111) 300
Net finance costs (72) (42) (111)
Tax (paid) (86) - -
Foreign currency exchange differences - - -
Net cash used in operating activities (1,455) (153) (189)
-------------- ------------- -------------
12. Related party transactions
There have been no changes to related party arrangements or
transactions as reported in the 2020 Annual Report.
Transactions between Group companies, which are related parties,
have been eliminated on consolidation and are therefore not
disclosed. The only other transactions which fall to be treated as
related party transactions are those relating to the remuneration
of key management personnel, which are not disclosed in the Half
Yearly Report, and which will be disclosed in the Group's next
Annual Report.
ENDS
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
IR BXGDCDSXDGBG
(END) Dow Jones Newswires
September 30, 2021 09:49 ET (13:49 GMT)
Xtract Resources (LSE:XTR)
Gráfica de Acción Histórica
De Feb 2024 a Mar 2024
Xtract Resources (LSE:XTR)
Gráfica de Acción Histórica
De Mar 2023 a Mar 2024