TIDMJAY
RNS Number : 5502N
Bluejay Mining PLC
21 May 2020
Bluejay Mining plc / EPIC: JAY / Market: AIM / Sector:
Mining
21 May 2020
Bluejay Mining plc ('Bluejay' or the 'Company')
Final Results and Notice of AGM
Bluejay Mining plc, an AIM and FSE listed company with projects
in Greenland and Finland, is pleased to announce its final results
for the year ended 31 December 2019. The Company also gives notice
that its Annual General Meeting ('AGM') will be held on 18 June
2020 at 10:00 a.m. at the Company's registered office, 7-9 Swallow
Street, London, W1B 7DE. Dial-in-details to enable shareholders to
attend the AGM remotely are included in the Notice of AGM, copies
of which, together with the Form of Proxy and Annual Report will be
posted to shareholders tomorrow and available to view on the
Company's website shortly.
Highlights:
-- Focussed on commencing near-term production at the world
class Dundas Ilmenite Project in Greenland
o Working agreement with Rio Tinto Iron and Titanium Canada Inc.
ongoing with smelter testing due 2021
o Confidential MOU signed with multinational trading firm in the
titanium feedstock market with possible project financing
o Mining Licence application currently entering the Public
Consultation phase with EIA and SIA both confirmed compliant
-- Expanded the Disko-Nuussuaq Magmatic Massive Sulphide
nickel-copper-platinum-cobalt project in Greenland as a result of
confidence in the discovery potential
o Encouraging results support the presence of a nickel-copper
bearing mineralisation
-- Increased the Kangerluarsuk Sed-Ex lead-zinc-silver project
area by more than five-fold to 692km(2)
o Mapping suggests known zinc, lead, silver and copper
occurrences could be up to 40m thick
-- 2020 exploration and maiden drill programme planned at Disko
and Kangerluarsuk postponed in light of COVID-19 but desktop
studies to refine drill targets are progressing
-- Acquired two new exploration licences in south Greenland,
together the Thunderstone Project, making Bluejay the largest
operational landowner in Greenland
-- Successful fundraising of GBP11.5m at 10p per share included
institutional support from German, Danish, UK and Irish investors
and investment from the Greenlandic and Danish Government
investment funds
-- Cost Savings Initiatives
o Implemented a cost saving programme in April 2020 to reduce
corporate overheads and ensure company longevity as a result of
COVID-19
o Greenlandic authorities have waived the Exploration Licence
commitments for 2020 further alleviating corporate overheads
Chairman's Statement
In light of these unprecedented times and the subsequent
challenging economic climate, I would like to begin my report by
sending my well wishes to all and thanking the entire Bluejay
Mining plc ('Bluejay' or the 'Group') team for remaining as focused
as ever. Bluejay continues to be steadfast in holding a world class
strategic portfolio of value accretive assets and I am pleased to
say that the breadth and potential of our portfolio is
considerable; from our emergent grassroots operations in Greenland
and Finland, all the way through to our more established, near term
target production assets in Greenland that include the world's
highest grade ilmenite sand project. We have built a portfolio that
spans the full value chain and offers shareholders significant
uplift potential.
To deliver on this potential, Bluejay's primary focus is
commencing production at our flagship asset, the Dundas Ilmenite
Project, which currently possesses a JORC compliant Mineral
Resource of 117Mt at 6.1% ilmenite in situ. For Bluejay and our
stakeholders worldwide, Dundas represents significant near-term
value potential thanks to the incredibly high grades of ilmenite
in-situ and the sheer size of the deposit. As a result, we have
been able to secure a number of highly strategic commercial
agreements with significant industry leaders; our ongoing working
agreement with Rio Tinto Iron and Titanium Canada Inc. ('RTIT') has
enabled us to complete our first major bulk sample export for
processing in Quebec, Canada, and a confidential MOU with a
multinational trading firm in the global titanium feedstock market
with offtake potential for up to 200tkpa ilmenite and possible
project financing, creates significant opportunity. Alongside this,
we continue to engage with a number of other leading industry
players with a view to securing additional commercial offtake
agreements.
The bulk sample for RTIT was produced at our pilot plant in
Quebec, which commenced operation in February 2020 and had been
running at full capacity for several weeks until COVID-19 outbreak.
Whilst the plant is now on care and maintenance in line with the
Quebec's government guidance that all non-essential businesses
should close, we are poised to recommence activity once it is safe
and sensible to do so and we look forward to RTIT smelter testing
the sample in 2021, which will be a key milestone for finalising
our future engagement with them.
Whilst we are in a fortunate position that we have a provisional
licence that enables us to ship the requisite material for the RTIT
bulk sample, a key point in any project's commercialisation is its
licencing. Over the past year great progress has been made
regarding the Exploitation Licence; we have successfully submitted
the Environmental Impact Assessment and Social Impact Assessment,
both of which have been confirmed compliant for the Public
Consultation phase, which are currently being completed. We remain
confident that the fantastic support Dundas' has consistently
received from the local communities and authorities will enable us
to conclude the Public Consultation swiftly, as we now work closely
with the government to finalise a way in which to satisfy this
licencing requirement whilst adhering to COVID-19 restrictions.
Whilst Bluejay's operational focus remains concentrated on the
continued de-risking and development of Dundas into a commercially
viable operation, our other promising Greenlandic assets remain at
the forefront of future development plans. Earlier in 2019 the team
turned its attention to expanding the Disko-Nuussuaq ('Disko')
Magmatic Massive Sulphide nickel-copper-platinum-cobalt project in
Greenland, a vast, highly prospective and strategically located
project with proven potential to host similar mineralisation to the
world's most sizeable nickel-copper sulphide mine, Norilsk-Talnakh,
in Siberia. Large scale systematic sampling surveys were undertaken
during the period which returned encouraging results supporting the
presence of a nickel-copper bearing mineralisation, thus paving the
way for further refining of drill site targets over the licence
area. Testament to our confidence in the discovery potential of
Disko, we extended the licence in February 2020 by 76 km(2) to
2,897 km(2) , which was also paired with acquiring a new licence
holding over the area.
Unfortunately, the planned 2020 advanced exploration and maiden
drilling campaign scheduled at Disko and simultaneously at our
Kangerluarsuk Sed-Ex lead-zinc-silver project ('Kangerluarsuk') in
southwest Greenland has been postponed as a result of COVID-19.
However, extensive desktop analysis to define drill targets and
assess future opportunities for these programmes has been completed
during the lockdown period, enabling the team to hit the ground
running should restrictions be lifted early enough to recommence
operations this 2020 field season. At Kangerluarsuk, drilling will
target known zinc, lead, silver and copper occurrences that have
correlations with the neighbouring former Black Angel
zinc-lead-silver mine. Mapping suggests these occurrences could be
up to 40m thick and as a result of our confidence in the licence's
prospectivity, post-period-end in January 2020 we increased the
project area by more than five-fold to 692km(2) .
These licence expansions together with a purchase in the second
quarter of this year of two new exploration licences in south
Greenland focussing on base metals and gold, known as the
Thunderstone Project ('Thunderstone') totalling 2,025km(2) resulted
in Bluejay becoming the single largest operational landholder in
Greenland. This prestigious position underpins our confidence in
the quality and discovery potential together with the overall
commitment Bluejay has to the region.
Crucially, it is not just Bluejay that has such strong
confidence in the value potential of Greenland. In November 2019,
the Company was delighted to raise GBP11.5m at 10p per share. This
was a significant achievement, in challenging markets. We were able
to attract institutional support from German, Danish, UK and Irish
investors while also securing investment from Greenlandic and
Danish Government investment funds, thus demonstrating a solid
endorsement of Bluejay's in-country activities. More recently an
equal portion from both of the Danish and Greenlandic holdings was
transferred to SISA, the Greenlandic Pension Fund, resulting in all
three entities holding equal thirds.
To maximise these funds and ensure the longevity of our company
given the current COVID-19 backdrop we implemented a cost saving
programme in April 2020 to reduce corporate overheads. For this I
would like to give my thanks to the entire Bluejay team for
supporting our company in this endeavour by agreeing to a 30%
reduction in all staff pay, including directors. I would also like
to give my thanks and commend the Greenlandic authorities for the
support they have shown Greenland's mining industry by waiving
Exploration Licence commitments for 2020, thereby removing the
associated financial responsibilities. This responsible approach is
testament to the quality of the jurisdiction in which we
operate.
The team is also pleased to maintain a portfolio of Finnish
assets; the Hammaslahti copper-zinc-gold-silver project, the
Enonkoski nickel-copper-cobalt-PGM project and the Outokumpu
copper-nickel-cobalt-cold project. This portfolio continues to be
cost-sustainable whilst we determine the best plan for future
development.
Outlook
Bluejay's investment model is based on five key sources of value
- high grade, scalable deposits, low capex, simple processing
routes and a supportive jurisdiction. Using our strategy of
'discover, develop and deliver', the team endeavours to ensure that
we recognise and capitalise upon these signature features across
all of our projects to maximise value creation. In the course of
this year we have firmly followed this approach, increasing our
land holding to encompass assets that meet our stringent investment
criteria, and implementing targeted development campaigns to
advance our portfolio and realise value.
Our most advanced asset and with an internationally renowned
status, Dundas, hosts a vast deposit that is proven to be the
highest grade globally and requires a simple mining operation with
minimal processing. Furthermore, Bluejay has experienced strong
demand for its end product, where the export markets and routes are
well established. The next major hurdle is to secure the requisite
Exploitation Licence and given the incredibly strong support that
Bluejay and the project has consistently received from both the
government and local community, we remain positive that this is a
near term deliverable.
To this end I am grateful to all of the communities in which we
operate, our strategic partners, stakeholders, advisors and the
entire Bluejay team for their continued support and tireless work.
Whilst the immediate global outlook continues to be dominated by
the extensive reach of COVID-19, we are confident of a promising
future beyond this, and look forward to a productive and promising
2020/2021. In the meantime, we hope everyone continues to stay safe
and well and we look forward to providing further updates on our
ongoing desktop studies, licencing and commercial discussions as
soon as we are in a position to do so.
STATEMENTS OF FINANCIAL POSITION
As at 31 December 2019
Group Company
------------------------------ ------------------------------
31 December 31 December 31 December 31 December
2019 2018 2019 2018
Note GBP GBP GBP GBP
-------------------------------- ------ -------------- -------------- -------------- --------------
Non-Current Assets
Property, plant and equipment 6 2,768,423 2,846,091 177,838 44,277
Intangible assets 7 23,138,507 15,478,246 - -
Investment in subsidiaries 9 - - 28,088,279 20,918,061
25,906,930 18,324,337 28,266,117 20,962,338
-------------------------------- ------ -------------- -------------- -------------- --------------
Current Assets
Financial assets at fair
value through profit or
loss 8 - 330,402 - 330,402
Trade and other receivables 10 1,459,755 768,960 1,728,371 840,620
Cash and cash equivalents 11 10,314,701 8,843,709 10,197,337 8,777,619
-------------------------------- ------ -------------- -------------- -------------- --------------
11,774,456 9,943,071 11,925,708 9,948,641
-------------------------------- ------ -------------- -------------- -------------- --------------
Total Assets 37,681,386 28,267,408 40,191,825 30,910,979
-------------------------------- ------ -------------- -------------- -------------- --------------
Non-Current Liabilities
Lease liabilities 13 62,220 - 62,220 -
Deferred tax liabilities 14 496,045 496,045 - -
-------------------------------- ------ -------------- -------------- -------------- --------------
558,265 496,045 62,220 -
Current Liabilities
Lease liabilities 13 80,814 - 80,814 -
Trade and other payables 12 1,242,847 783,836 996,176 469,554
1,323,661 783,836 1,076,990 469,554
-------------------------------- ------ -------------- -------------- -------------- --------------
Total Liabilities 1,881,926 1,279,881 1,139,210 469,554
-------------------------------- ------ -------------- -------------- -------------- --------------
Net Assets 35,799,460 26,987,527 39,052,615 30,441,425
-------------------------------- ------ -------------- -------------- -------------- --------------
Equity attributable to
owners of the Parent
Share capital 16 7,484,066 7,800,237 7,484,066 7,800,237
Share premium 16 55,463,656 43,739,139 55,463,656 43,739,139
Other reserves 1 8 (7,604,567) (6,799,892) 660,536 311,397
Retained losses (19,543,695) (17,751,957) (24,555,643) (21,409,348)
-------------------------------- ------ -------------- -------------- -------------- --------------
Total Equity 35,799,460 26,987,527 39,052,615 30,441,425
-------------------------------- ------ -------------- -------------- -------------- --------------
The Company has elected to take the exemption under Section 408
of the Companies Act 2006 from presenting the Parent Company Income
Statement and Statement of Comprehensive Income. The loss for the
Company for the year ended 31 December 2019 was GBP3,161,498 (year
ended 31 December 2018: GBP8,894,678).
CONSOLIDATED INCOME STATEMENT
For the year ended 31 December 2019
Year ended Year ended
31 December 31 December
2019 2018
Continued operations Note GBP GBP
---------------------------------------------------- ------ -------------- --------------
Revenue - -
Cost of sales - -
---------------------------------------------------- ------ -------------- --------------
Gross profit - -
Administrative expenses 25 (2,259,624) (1,800,851)
Other gains/(losses) 22 567,068 (93,111)
Foreign exchange (121,891) (23,757)
Operating loss (1,814,447) (1,917,719)
Impairments 7 - (8,873,585)
Finance income 21 6,454 12,209
Other income 1,052 2,409
Loss before income tax (1,806,941) (10,776,686)
Income tax expense 23 - -
---------------------------------------------------- ------ -------------- --------------
Loss for the year attributable to owners
of the Parent (1,806,941) (10,776,686)
---------------------------------------------------- ------ -------------- --------------
Basic and Diluted Earnings Per Share attributable
to owners of the Parent during the period
(expressed in pence per share) 24 (0.21)p (1.279)p
---------------------------------------------------- ------ -------------- --------------
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the year ended 31 December 2019
Year ended Year ended
31 December 31 December
2019 2018
GBP GBP
---------------------------------------------------- -------------- --------------
Loss for the year (1,806,941) (10,776,686)
Other Comprehensive Income:
Items that may be subsequently reclassified to
profit or loss
Currency translation differences (1,153,814) 150,660
----------------------------------------------------- -------------- --------------
Other comprehensive income for the year, net
of tax (1,153,814) 150,660
----------------------------------------------------- -------------- --------------
Total Comprehensive Income attributable to owners
of the Parent (2,960,755) (10,626,026)
----------------------------------------------------- -------------- --------------
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended 31 December 2019
Share Retained
capital Share premium Other reserves losses Total
Note GBP GBP GBP GBP GBP
-----------
Balance as at 1 January
2018 7,792,372 27,220,576 (6,949,904) (6,975,919) 21,087,125
-------------------------- ------ ----------- --------------- ---------------- -------------- --------------
Loss for the year - - - (10,776,686) (10,776,686)
-------------------------- ------ ----------- --------------- ---------------- -------------- --------------
Other comprehensive
income for the year
Items that may be
subsequently
reclassified to profit
or loss
-------------------------- ------ ----------- --------------- ---------------- -------------- --------------
Currency translation
differences - - 150,660 - 150,660
-------------------------- ------ ----------- --------------- ---------------- -------------- --------------
Total comprehensive
income for the period - - 150,660 (10,776,686) (10,626,026)
-------------------------- ------ ----------- --------------- ---------------- -------------- --------------
Proceeds from share
issues 16 7,828 17,092,171 - - 17,099,999
Issue costs 16 - (641,071) - - (641,071)
Share based payments 17 37 67,463 - - 67,500
Exercised options 17 - - (648) 648 -
Total transactions
with owners, recognised
directly in equity 7,865 16,518,563 (648) 648 16,526,428
Balance as at 31
December
2018 7,800,237 43,739,139 (6,799,892) (17,751,957) 26,987,527
-------------------------- ------ ----------- --------------- ---------------- -------------- --------------
Balance as at 1 January
2019 7,800,237 43,739,139 (6,799,892) (17,751,957) 26,987,527
-------------------------- ------ ----------- --------------- ---------------- -------------- --------------
Loss for the year - - - (1,806,941) (1,806,941)
-------------------------- ------ ----------- --------------- ---------------- -------------- --------------
Other comprehensive
income for the year
Items that may be
subsequently
reclassified to profit
or loss
Currency translation
differences - - (1,153,814) - (1,153,814)
Total comprehensive
income for the year - - (1,153,814) (1,806,941) (2,960,755)
Proceeds from share
issues 16 11,500 11,488,500 - - 11,500,000
Issue costs 16 - (175,800) - - (175,800)
Share based payments 17 496 411,817 36,175 - 448,488
Exercised options 17 - - (13,605) 13,605 -
Expired options 17 - - (1,598) 1,598 -
Other equity adjustments 16 (328,167) - 328,167 - -
Total transactions
with owners, recognised
directly in equity (316,171) 11,724,517 349,139 15,203 11,772,688
-------------------------- ------ ----------- --------------- ---------------- -------------- --------------
Balance as at 31
December
2019 7,484,066 55,463,656 (7,604,567) (19,543,695) 35,799,460
-------------------------- ------ ----------- --------------- ---------------- -------------- --------------
COMPANY STATEMENT OF CHANGES IN EQUITY
For the year ended 31 December 2019
Share Share Retained
capital premium Other reserves losses Total equity
Note GBP GBP GBP GBP GBP
Balance as at 1 January
2018 7,792,372 27,220,576 312,045 (12,515,318) 22,809,675
---------------------------- ------ ----------- ------------ ---------------- -------------- --------------
Loss for the year - - - (8,894,678) (8,894,678)
---------------------------- ------ ----------- ------------ ---------------- -------------- --------------
Total comprehensive
income for the year - - - (8,894,678) (8,894,678)
---------------------------- ------ ----------- ------------ ---------------- -------------- --------------
Proceeds from share
issues 16 7,828 17,092,171 - - 17,099,999
Issue costs 16 - (641,071) - - (641,071)
Share based payments 17 37 67,463 - - 67,500
Exercised options 17 - - (648) 648 -
Total transactions
with owners, recognised
directly in equity 7,865 16,518,563 (648) 648 16,526,428
Balance as at 31 December
2018 7,800,237 43,739,139 311,397 (21,409,348) 30,441,425
---------------------------- ------ ----------- ------------ ---------------- -------------- --------------
Balance as at 1 January
2019 7,800,237 43,739,139 311,397 (21,409,348) 30,441,425
---------------------------- ------ ----------- ------------ ---------------- -------------- --------------
Loss for the year - - - (3,161,498) (3,161,498)
---------------------------- ------ ----------- ------------ ---------------- -------------- --------------
Total comprehensive
income for the year - - - (3,161,498) (3,161,498)
---------------------------- ------ ----------- ------------ ---------------- -------------- --------------
Proceeds from share
issues 16 11,500 11,488,500 - - 11,500,000
Issue costs 16 - (175,800) - - (175,800)
Share based payments 17 496 411,817 - - 412,313
Issued Options 17 36,175 - 36,175
Exercised options 17 - - (13,605) 13,605 -
Expired Options 17 - - (1,598) 1,598 -
Other equity adjustments (328,167) - 328,167 - -
Total transactions
with owners, recognised
directly in equity (316,171) 11,724,517 349,139 15,203 11,772,688
---------------------------- ------ ----------- ------------ ---------------- -------------- --------------
Balance as at 31 December
2019 7,484,066 55,463,656 660,536 (24,555,643) 39,052,615
---------------------------- ------ ----------- ------------ ---------------- -------------- --------------
STATEMENTS OF CASH FLOWS
For the year ended 31 December 2019
Group Company
------------------------------ ------------------------------
Year ended Year ended Year ended Year ended
31 December 31 December 31 December 31 December
2019 2018 2019 2018
Note GBP GBP GBP GBP
--------------------------------------- ------ -------------- -------------- -------------- --------------
Cash flows from operating activities
Loss before income tax (1,806,941) (10,776,686) (3,161,498) (8,894,678)
Adjustments for:
Depreciation 6 500,479 250,590 61,519 12,745
Loss/(gain) on financial assets
at FVTPL 8 (668,133) 96,573 (668,133) 96,573
Loss on sale of property, plant
and equipment 6 71,644 - - -
Share options expense 17 36,175 - 36,175 -
Share based payments 17 412,313 45,000 412,313 45,000
Intercompany management fees - - (665,120) (620,482)
Net finance (income)/costs 21 (6,454) (12,906) (458,442) (303,912)
Non cash loss/(gain) 96,568 - 1,483,889 -
Impairments 7 - 8,873,585 - 8,010,452
Changes in working capital:
(Increase)/Decrease in trade
and other receivables 10 (1,156,028) (174,810) 647,777 404,782
Increase/(Decrease) in trade
and other payables 12 459,847 241,867 526,623 (42,224)
Net cash used in operating
activities (2,060,530) (1,456,787) (1,784,897) (1,291,744)
--------------------------------------- ------ -------------- -------------- -------------- --------------
Cash flows from investing activities
Purchase of property plant
and equipment 6 (543,556) (2,452,284) (12,539) (48,689)
Sale of financial assets at
FVTPL 8 998,535 - 998,535 -
Sale of property, plant and
equipment 6 165,140 - - -
Purchase of quoted shares measured
at fair value through the profit
or loss 8 - (426,975) - (426,975)
Purchase of intangible assets 7 (7,841,020) (6,251,969) - -
Interest received 10,683 12,906 10,683 12,210
--------------------------------------- ------ -------------- -------------- -------------- --------------
Net cash used in investing
activities (7,210,218) (9,118,322) 996,679 (463,454)
--------------------------------------- ------ -------------- -------------- -------------- --------------
Cash flows from financing activities
Proceeds from issue of share
capital 16 10,925,000 17,099,999 10,925,000 17,099,999
Transaction costs of share
issue 16 (175,800) (641,071) (175,800) (641,071)
Loans granted to subsidiary
undertakings - - (8,538,772) (8,746,995)
Interest paid (4,229) - (2,492) -
Net cash generated from financing
activities 10,744,971 16,458,928 2,207,936 7,711,933
--------------------------------------- ------ -------------- -------------- -------------- --------------
Net decrease/(increase) in
cash and cash equivalents 1,474,223 5,883,819 1,419,718 5,956,735
Cash and cash equivalents at
beginning of year 8,843,709 2,901,922 8,777,619 2,820,884
Exchange gain on cash and cash
equivalents (3,231) 57,968 - -
--------------------------------------- ------ -------------- -------------- -------------- --------------
Cash and cash equivalents at
end of year 11 10,314,701 8,843,709 10,197,337 8,777,619
--------------------------------------- ------ -------------- -------------- -------------- --------------
Major non-cash transactions
During the year, the Company issued share capital for proceeds
of GBP11.5m. An amount of GBP575,000 is unpaid at 31 December
2019.
The Company has issued shares as settlement for expenses with a
value of GBP412,313.
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 31 December 2019
1. General information
The principal activity of Bluejay Mining plc (the 'Company') and
its subsidiaries (together the 'Group') is the exploration and
development of precious and base metals. The Company's shares are
listed on the AIM of the London Stock Exchange and the open market
of the Frankfurt Stock Exchange. The Company is incorporated and
domiciled in England.
The address of its registered office is 7-9 Swallow Street,
London, W1B 4DE.
2. Summary of significant Accounting Policies
The principal Accounting Policies applied in the preparation of
these Consolidated Financial Statements are set out below. These
Policies have been consistently applied to all the periods
presented, unless otherwise stated.
2.1. Basis of preparation of Financial Statements
The consolidated financial statements have been prepared in
accordance with International Financial Reporting Standards
('IFRS') and IFRS Interpretations Committee ('IFRS IC') as adopted
by the European Union, the Companies Act 2006 that applies to
companies reporting under IFRS and IFRS IC interpretations. The
Consolidated Financial Statements have also been prepared under the
historical cost convention, except as modified for assets and
liabilities recognised at fair value on business combination.
The Financial Statements are presented in Pound Sterling rounded
to the nearest pound.
The preparation of financial statements in conformity with IFRS
requires the use of certain critical accounting estimates. It also
requires management to exercise its judgement in the process of
applying the Accounting Policies. The areas involving a higher
degree of judgement or complexity, or areas where assumptions and
estimates are significant to the Consolidated Financial Statements
are disclosed in Note 4.
2.2. New and amended standards
(a) New and amended standards mandatory for the first time for
the financial periods beginning on or after 1 January 2019
As of 1 January 2019, the Company adopted IFRS 16 Leases,
Amendments to IFRS 2 - classification and measurement of share
based payments transactions, Annual improvements to IFRS Standards
2015-2017 cycle and IFRIC 23 Uncertainty over income tax
treatments.
IFRS 16 Adoption
On 1 January 2019, the Group adopted the provisions of IFRS 16 -
Leases using the modified retrospective approach, under which the
cumulative effect of initial application is recognised in retained
earnings at 1 January 2019 where material. Accordingly, the
comparative information presented for 2018 has not been
restated.
FIRS 16 has been applied to one new lease which was adopted
during the financial year. In the Statement of Financial Position,
the right-of-use asset is recorded in non-current assets as part of
property, plant and equipment and the lease liability is split
between current liabilities for the portion due within 12 months
and non-current liabilities for the remainder.
To determine the split between principal and interest in the
lease the incremental borrowing rate of the Group was applied. This
method was adopted as the Group was not able to ascertain the
implied interest rate in the lease.
The Group has applied the exemption not to recognise
right-of-use assets and liabilities for leases with less than 12
months of lease term when applying IFRS 16 to leases previously
classified as operating leases under IAS 17.
Of the other IFRSs and IFRICs, none are expected to have a
material effect on future Company Financial Information.
(b) New standards, amendments and Interpretations in issue but
not yet effective or not yet endorsed and not early adopted
Standards, amendments and interpretations that are not yet
effective and have not been early adopted are as follows:
Standard Impact on initial application Effective date
--------------------- ------------------------------- ------------------
IFRS 3 (Amendments) Definition of a Business *1 January 2020
------------------------------- ------------------
IAS 1 and IAS 8 Definition of material 1 January 2020
(Amendments)
------------------------------- ------------------
IAS 1 (Amendments) Classification of Liabilities *1 January 2022
as Current or Non-Current.
------------------------------- ------------------
(*subject to EU endorsement)
The Group is evaluating the impact of the new and amended
standards above which are not expected to have a material impact on
the Group's results or shareholders' funds statements.
2.3. Basis of Consolidation
The Consolidated Financial Statements consolidate the financial
statements of the Company and its subsidiaries made up to 31
December. Subsidiaries are entities over which the Group has
control. Control is achieved when the Group is exposed, or has
rights, to variable returns from its involvement with the investee
and has the ability to affect those returns through its power over
the investee.
Generally, there is a presumption that a majority of voting
rights result in control. To support this presumption and when the
Group has less than a majority of the voting or similar rights of
an investee, the Group considers all relevant facts and
circumstances in assessing whether it has power over an investee,
including:
-- The contractual arrangement with the other vote holders of the investee;
-- Rights arising from other contractual arrangements; and
-- The Group's voting rights and potential voting rights.
The Group re-assesses whether or not it controls an investee if
facts and circumstances indicate that there are changes to one or
more of the three elements of control. Subsidiaries are fully
consolidated from the date on which control is transferred to the
Group. They are deconsolidated from the date that control ceases.
Assets, liabilities, income and expenses of a subsidiary acquired
or disposed of during the period are included in the consolidated
financial statements from the date the Group gains control until
the date the Group ceases to control the subsidiary.
Investments in subsidiaries are accounted for at cost less
impairment within the parent company financial statements. Where
necessary, adjustments are made to the financial statements of
subsidiaries to bring the accounting policies used in line with
those used by other members of the Group. All significant
intercompany transactions and balances between Group enterprises
are eliminated on consolidation.
2.4. Going concern
As described in Note 30 , 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 Bluejay
activities for the benefit for all its stakeholders and as a result
the Group have postponed all fieldwork until the UK and Greenland
Governments confirm it is safe to do so.
The Consolidated Financial Statements have been prepared on a
going concern basis. Although the Group's assets are not generating
revenues and an operating loss has been reported, the Directors are
of the view that the Group has sufficient funds to meet all
committed and contractual expenditure within the next 12 months and
to maintain good title to the exploration licences. This will
ensure they will still be in a strong financial position once they
are able to re-commence exploration activity.
The Group's business activities together with the additional
factors likely to affect its future development, performance and
position are set out in the Chairman's Report. In addition, Note 3
to the Consolidated Financial Statements includes the Group's
objectives, policies and processes for managing its capital; its
financial risk management objectives; details of its financial
instruments and its exposure to market, credit and liquidity
risk.
The Directors have a reasonable expectation that the Group and
Company have sufficient resources to continue in the current
economic climate with the COVID-19 pandemic and for the foreseeable
future. Thus, they continue to adopt the going concern basis of
accounting in preparing the Group and Company Financial
Statements.
2.5. Segment reporting
Operating segments are reported in a manner consistent with the
internal reporting provided to the chief operating decision-maker
(CODM). The CODM, who is responsible for allocating resources and
assessing performance of the operating segments, has been
identified as the Board of Directors that makes strategic
decisions.
Segment results include items directly attributable to a segment
as well as those that can be allocated on a reasonable basis.
2.6. Foreign currencies
(a) Functional and presentation currency
Items included in the Financial Statements of each of the
Group's entities are measured using the currency of the primary
economic environment in which the entity operates (the 'functional
currency'). The functional currency of the UK parent entity and UK
subsidiary is Pound Sterling, the functional currency of the
Finnish and Austrian subsidiaries is Euros and the functional
currency of the Greenlandic subsidiaries is Danish Krone. The
Financial Statements are presented in Pounds Sterling which is the
Company's functional and Group's presentation currency.
(b) Transactions and balances
Foreign currency transactions are translated into the functional
currency using the exchange rates prevailing at the dates of the
transactions or valuation where such items are re-measured. Foreign
exchange gains and losses resulting from the settlement of such
transactions and from the translation at period-end exchange rates
of monetary assets and liabilities denominated in foreign
currencies are recognised in the income statement.
(c) Group companies
The results and financial position of all the Group entities
(none of which has the currency of a hyperinflationary economy)
that have a functional currency different from the presentation
currency are translated into the presentation currency as
follows:
-- assets and liabilities for each period end date presented are
translated at the period-end closing rate;
-- income and expenses for each Income Statement are translated
at average exchange rates (unless this average is not a reasonable
approximation of the cumulative effect of the rates prevailing on
the transaction dates, in which case income and expenses are
translated at the dates of the transactions); and
-- all resulting exchange differences are recognised in other comprehensive income.
On consolidation, exchange differences arising from the
translation of the net investment in foreign entities, and of
monetary items receivable from foreign subsidiaries for which
settlement is neither planned nor likely to occur in the
foreseeable future, are taken to other comprehensive income. When a
foreign operation is sold, such exchange differences are recognised
in the Income Statement as part of the gain or loss on sale.
2.7. Intangible assets
Exploration and evaluation assets
The Group recognises expenditure as exploration and evaluation
assets when it determines that those assets will be successful in
finding specific mineral resources. Expenditure included in the
initial measurement of exploration and evaluation assets and which
are classified as intangible assets relate to the acquisition of
rights to explore, topographical, geological, geochemical and
geophysical studies, exploratory drilling, trenching, sampling and
activities to evaluate the technical feasibility and commercial
viability of extracting a mineral resource. Capitalisation of
pre-production expenditure ceases when the mining property is
capable of commercial production
Exploration and evaluation assets are recorded and held at
cost
Exploration and evaluation assets are not subject to
amortisation, as such at the year-end all intangibles held have an
indefinite life, but are assessed annually for impairment. The
assessment is carried out by allocating exploration and evaluation
assets to cash generating units ('CGU's'), which are based on
specific projects or geographical areas. The CGU's are then
assessed for impairment using a variety of methods including those
specified in IFRS 6.
Whenever the exploration for and evaluation of mineral resources
in cash generating units does not lead to the discovery of
commercially viable quantities of mineral resources and the Group
has decided to discontinue such activities of that unit, the
associated expenditures are written off to the Income
Statement.
Exploration and evaluation assets recorded at fair-value on
business combination
Exploration assets which are acquired as part of a business
combination are recognised at fair value in accordance with IFRS 3.
When a business combination results in the acquisition of an entity
whose only significant assets are its exploration asset and/or
rights to explore, the Directors consider that the fair value of
the exploration assets is equal to the consideration. Any excess of
the consideration over the capitalised exploration asset is
attributed to the fair value of the exploration asset.
2.8. Investments in subsidiaries
Investments in Group undertakings are stated at cost, which is
the fair value of the consideration paid, less any impairment
provision.
2.9. Property, plant and equipment
Property, Plant and equipment is stated at cost less accumulated
depreciation and any accumulated impairment losses. Depreciation is
provided on all property, plant and equipment to write off the cost
less estimated residual value of each asset over its expected
useful economic life on a straight line basis at the following
annual rates:
Office Equipment - 5 years
Machinery and Equipment - 5 to 15 years
Software - 2 years
Subsequent costs are included in the asset's carrying amount or
recognised as a separate asset, as appropriate, only when it is
probable that future economic benefits associated with the item
will flow to the Group and the cost of the item can be measured
reliably. The carrying amount of the replaced part is derecognised.
All other repairs and maintenance are charged to the income
statement during the financial period in which they are
incurred.
The assets' residual values and useful lives are reviewed, and
adjusted if appropriate, at the end of each reporting period.
An asset's carrying amount is written down immediately to its
recoverable amount if the asset's carrying amount is greater than
its estimated recoverable amount. If an impairment review is
conducted following an indicator of impairment, assets which are
not able to be assessed for impairment individually are assessed in
combination with other assets within a cash generating unit.
Gains and losses on disposal are determined by comparing the
proceeds with the carrying amount and are recognised within 'Other
(losses)/gains' in the Income Statement.
2.10. Impairment of non-financial assets
Assets that have an indefinite useful life, for example,
intangible assets not ready to use, and goodwill, are not subject
to amortisation and are tested annually for impairment. Property,
plant and equipment is reviewed for impairment whenever events or
changes in circumstances indicate that the carrying amount may not
be recoverable. An impairment loss is recognised for the amount by
which the asset's carrying amount exceeds its recoverable amount.
The recoverable amount is the higher of an asset's fair value less
costs to sell and value in use. For the purposes of assessing
impairment, assets are grouped at the lowest levels for which there
are separately identifiable cash flows (cash generating units).
Non-financial assets that suffered impairment are reviewed for
possible reversal of the impairment at each reporting date.
2.11. Financial assets
(a) Classification
The Group classifies its financial assets at amortised cost and
at fair value through the profit or loss. The classification
depends on the purpose for which the financial assets were
acquired. Management determines the classification of its financial
assets at initial recognition.
(b) Recognition and measurement
Amortised cost
Regular purchases and sales of financial assets are recognised
on the trade date at cost - the date on which the Group commits to
purchasing or selling the asset. Financial assets are derecognized
when the rights to receive cash flows from the assets have expired
or have been transferred, and the Group has transferred
substantially all of the risks and rewards of ownership .
Fair value through the profit or loss
Financial assets that do not meet the criteria for being
measured at amortised cost or FVTOCI are measured at FVTPL.The
Group holds equity instruments that are classified as FVTPL as
these were acquired principally for the purpose of selling in the
near term.
Financial assets at FTVPL, are measured at fair value at the end
of each reporting period, with any fair value gains or losses
recognised in profit or loss. Fair value is determined by using
market observable inputs and data as far as possible. Inputs used
in determining fair value measurements are categorised into
different levels based on how observable the inputs used in the
valuation technique utilised are (the 'fair value hierarchy'):
- Level 1: Quoted prices in active markets for identical items
(unadjusted)
- Level 2: Observable direct or indirect inputs other than Level
1 inputs
- Level 3: Unobservable inputs (i.e. not derived from market
data).
The classification of an item into the above levels is based on
the lowest level of the inputs used that has a significant effect
on the fair value measurement of the item. Transfers of items
between levels are recognised in the period they occur.
The Group measures its investments in quoted shares using the
quoted market price.
(c) Impairment of financial assets
The Group recognises an allowance for expected credit losses
(ECLs) for all debt instruments not held at fair value through
profit or loss. ECLs are based on the difference between the
contractual cash flows due in accordance with the contract and all
the cash flows that the Group expects to receive, discounted at an
approximation of the original EIR. The expected cash flows will
include cash flows from the sale of collateral held or other credit
enhancements that are integral to the contractual terms.
ECLs are recognised in two stages. For credit exposures for
which there has not been a significant increase in credit risk
since initial recognition, ECLs are provided for credit losses that
result from default events that are possible within the next
12-months (a 12-month ECL). For those credit exposures for which
there has been a significant increase in credit risk since initial
recognition, a loss allowance is required for credit losses
expected over the remaining life of the exposure, irrespective of
the timing of the default (a lifetime ECL).
For trade receivables (not subject to provisional pricing) and
other receivables due in less than 12 months, the Group applies the
simplified approach in calculating ECLs, as permitted by IFRS 9.
Therefore, the Group does not track changes in credit risk, but
instead, recognises a loss allowance based on the financial asset's
lifetime ECL at each reporting date.
The Group considers a financial asset in default when
contractual payments are 90 days past due. However, in certain
cases, the Group may also consider a financial asset to be in
default when internal or external information indicates that the
Group is unlikely to receive the outstanding contractual amounts in
full before taking into account any credit enhancements held by the
Group. A financial asset is written off when there is no reasonable
expectation of recovering the contractual cash flows and usually
occurs when past due for more than one year and not subject to
enforcement activity.
At each reporting date, the Group assesses whether financial
assets carried at amortised cost are credit impaired. A financial
asset is credit-impaired when one or more events that have a
detrimental impact on the estimated future cash flows of the
financial asset have occurred.
(d) Derecognition
The Group derecognises a financial asset only when the
contractual rights to the cash flows from the asset expire, or when
it transfers the financial asset and substantially all the risks
and rewards of ownership of the asset to another entity.
On derecognition of a financial asset measured at amortised
cost, the difference between the asset's carrying amount and the
sum of the consideration received and receivable is recognised in
profit or loss. This is the same treatment for a financial asset
measured at FVTPL.
2.12. Financial liabilities
Financial liabilities are classified, at initial recognition, as
financial liabilities at fair value through profit or loss, loans
and borrowings, payables, or as derivatives designated as hedging
instruments in an effective hedge, as appropriate. All financial
liabilities are recognised initially at fair value and, in the case
of loans and borrowings and payables, net of directly attributable
transaction costs. The Group's financial liabilities include trade
and other payables and loans.
Subsequent measurement
The measurement of financial liabilities depends on their
classification, as described below:
Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss
include financial liabilities held for trading and financial
liabilities designated upon initial recognition as at fair value
through profit or loss. Financial liabilities are classified as
held for trading if they are incurred for the purpose of
repurchasing in the near term. This category also includes
derivative financial instruments entered into by the Group that are
not designated as hedging instruments in hedge relationships as
defined by IFRS 9. Separated embedded derivatives are also
classified as held for trading unless they are designated as
effective hedging instruments. Gains or losses on liabilities held
for trading are recognised in the statement of profit or loss and
other comprehensive income.
Trade and other payables
After initial recognition, trade and other payables are
subsequently measured at amortised cost using the EIR method. Gains
and losses are recognised in the statement of profit or loss and
other comprehensive income when the liabilities are derecognised,
as well as through the EIR amortisation process.
Amortised cost is calculated by taking into account any discount
or premium on acquisition and fees or costs that are an integral
part of the EIR. The EIR amortisation is included as finance costs
in the statement of profit or loss and other comprehensive
income.
Derecognition
A financial liability is derecognised when the associated
obligation is discharged or cancelled or expires
When an existing financial liability is replaced by another from
the same lender on substantially different terms, or the terms of
an existing liability are substantially modified, such an exchange
or modification is treated as the derecognition of the original
liability and the recognition of a new liability. The difference in
the respective carrying amounts is recognised in profit or loss and
other comprehensive income.
Liabilities within the scope of IFRS 9 are classified as
financial liabilities at fair value through profit and loss or
other liabilities, as appropriate.
A financial liability is derecognised when the obligation under
the liability is discharged or cancelled or expires.
Financial liabilities included in trade and other payables are
recognised initially at fair value and subsequently at amortised
cost.
2.13. Leases
Assets and liabilities arising from a lease are initially
measured on a present value basis. Lease liabilities include the
net present value of the following lease payments:
-- Fixed payments, less any lease incentives receivable;
-- Variable lease payment that are based on an index or a rate,
initially measured using the index or the rate as at the
commencement date;
-- The exercise price of a purchase option; and
-- Payment of penalties for terminating the lease.
Lease payments to be made under reasonably certain extension
options are also included in the measurement of the liability. The
lease payments are discounted using the interest rate implicit in
the lease. If that rate cannot be readily determined, the lessee's
incremental borrowing rate is used, being the rate that the lessee
would have to pay to borrow the funds necessary to obtain an asset
of similar value to the right-ofuse asset in a similar economic
environment with similar terms, security and conditions. Lease
payments are allocated between principal and finance cost. The
finance cost is charged to profit or loss over the lease period so
as to produce a constant periodic rate of interest on the remaining
balance of the liability for each period.
Assets obtained under finance leases are depreciated over their
useful lives. The lease liabilities are shown in note 13.
Rent payable under operating leases on which the short term
exemption has been taken, less any lease incentives received, is
charged to the income statement on a straight-line basis over the
term of the relevant lease except where another more systematic
basis is more representative of the time pattern in which economic
benefits from the lease asset are consumed.
2.14. Cash and cash equivalents
Cash and cash equivalents comprise cash at bank and in hand.
2.15. Equity
Equity comprises the following:
-- "Share capital" represents the nominal value of the Ordinary shares;
-- "Share Premium" represents consideration less nominal value
of issued shares and costs directly attributable to the issue of
new shares;
-- "Other reserves" represents the merger reserve, foreign
currency translation reserve, redemption reserve and share option
reserve where;
o "Merger reserve" represents the difference between the fair
value of an acquisition and the nominal value of the shares
allotted in a share exchange;
o "Foreign currency translation reserve" represents the
translation differences arising from translating the financial
statement items from functional currency to presentational
currency;
o "Reverse acquisition reserve" represents a non-distributable
reserve arising on the acquisition of Finland Investments
Limited;
o "Redemption reserve" represents a non-distributable reserve
made up of share capital;
o "Share option reserve" represents share options awarded by the
group;
-- "Retained earnings" represents retained losses.
2.16. Share capital, share premium and deferred shares
Ordinary shares are classified as equity. Incremental costs
directly attributable to the issue of new shares or options are
shown in equity, as a deduction, net of tax, from the proceeds
provided there is sufficient premium available. Should sufficient
premium not be available placing costs are recognised in the Income
Statement.
Deferred shares are classified as equity. Deferred shares have
no rights to receive dividends, or to attend or vote at general
meetings of the Company and are only entitled to a return of
capital after payment to holders of new ordinary shares of
GBP100,000 per each share held.
2.17. Share based payments
The Group operates a number of equity-settled, share-based
schemes, under which the Group receives services from employees or
third party suppliers as consideration for equity instruments
(options and warrants) of the Group. The fair value of the third
party suppliers' services received in exchange for the grant of the
options is recognised as an expense in the Income Statement or
charged to equity depending on the nature of the service provided.
The value of the employee services received is expensed in the
Income Statement and its value is determined by reference to the
fair value of the options granted:
-- including any market performance conditions;
-- excluding the impact of any service and non-market
performance vesting conditions (for example, profitability or sales
growth targets, or remaining an employee of the entity over a
specified time period); and
-- including the impact of any non-vesting conditions (for
example, the requirement for employees to save).
The fair value of the share options and warrants are determined
using the Black Scholes valuation model.
Non-market vesting conditions are included in assumptions about
the number of options that are expected to vest. The total expense
or charge is recognised over the vesting period, which is the
period over which all of the specified vesting conditions are to be
satisfied. At the end of each reporting period, the entity revises
its estimates of the number of options that are expected to vest
based on the non-market vesting conditions. It recognises the
impact of the revision to original estimates, if any, in the Income
Statement or equity as appropriate, with a corresponding adjustment
to a separate reserve in equity.
When the options are exercised, the Group issues new shares. The
proceeds received, net of any directly attributable transaction
costs, are credited to share capital (nominal value) and share
premium when the options are exercised.
2.18. Taxation
No current tax is yet payable in view of the losses to date.
Deferred tax is recognised for using the liability method in
respect of temporary differences arising from differences between
the carrying amount of assets and liabilities in the consolidated
financial statements and the corresponding tax bases used in the
computation of taxable profit. However, deferred tax liabilities
are not recognised if they arise from the initial recognition of
goodwill; deferred tax is not accounted for if it arises from
initial recognition of an asset or liability in a transaction other
than a business combination that at the time of the transaction
affects neither accounting nor taxable profit or loss.
In principle, deferred tax liabilities are recognised for all
taxable temporary differences and deferred tax assets (including
those arising from investments in subsidiaries), are recognised to
the extent that it is probable that taxable profits will be
available against which deductible temporary differences can be
utilised.
Deferred income tax assets are recognised on deductible
temporary differences arising from investments in subsidiaries only
to the extent that it is probable the temporary difference will
reverse in the future and there is sufficient taxable profit
available against which the temporary difference can be used.
Deferred tax liabilities are recognised for taxable temporary
differences arising on investments in except where the Group is
able to control the reversal of the temporary difference and it is
probable that the temporary difference will not reverse in the
foreseeable future.
Deferred tax assets and liabilities are offset when there is a
legally enforceable right to offset current tax assets against
current tax liabilities and when the deferred tax assets and
liabilities relate to income taxes levied by the same taxation
authority on either the same taxable entity or different taxable
entities where there is an intention to settle the balances on a
net basis.
Deferred tax is calculated at the tax rates (and laws) that have
been enacted or substantively enacted by the statement of financial
position date and are expected to apply to the period when the
deferred tax asset is realised or the deferred tax liability is
settled.
Deferred tax assets and liabilities are not discounted.
3. Financial risk management
3.1. Financial risk factors
The Group's activities expose it to a variety of financial
risks: market risk (foreign currency risk, price risk and interest
rate risk), credit risk and liquidity risk. The Group's overall
risk management programme focuses on the unpredictability of
financial markets and seeks to minimise potential adverse effects
on the Group's financial performance. None of these risks are
hedged.
Risk management is carried out by the London based management
team under policies approved by the Board of Directors.
Market risk
(a) Foreign currency risk
The Group operates internationally and is exposed to foreign
exchange risk arising from various currency exposures, primarily
with respect to the Euro, Danish Krone and the British Pound.
Foreign exchange risk arises from future commercial transactions,
recognised assets and liabilities and net investments in foreign
operations.
The Group negotiates all material contracts for activities in
relation to its subsidiaries in either British Pounds, Euros or
Danish Krone. The Group does not hedge against the risks of
fluctuations in exchange rates. The volume of transactions is not
deemed sufficient to enter into forward contracts as most of the
foreign exchange movements result from the retranslation of inter
company loans. The Group has not sensitised the figures for
fluctuations in foreign exchange rates as the Directors are of the
opinion that these fluctuations, apart from the retranslation of
intercompany loans at the closing rate, would not have a
significant impact on the financial statements of the Group.
However, the Directors acknowledge that, at the present time, the
foreign exchange retranslations have resulted in rather higher than
normal fluctuations which are separately disclosed, and is
predominantly due to the exceptional nature of the Euro exchange
rate in the last two years in the current economic climate. The
Directors will continue to assess the effect of movements in
exchange rates on the Group's financial operations and initiate
suitable risk management measures where necessary.
(b) Price risk
The Group is not exposed to commodity price risk as a result of
its operations, which are still in the exploration phase. The
Directors will revisit the appropriateness of this policy should
the Group's operations change in size or nature.
The Group has exposure to equity securities price risk, as it
holds listed equity investments.
Credit risk
Credit risk arises from cash and cash equivalents as well as
outstanding receivables. Management does not expect any losses from
non-performance of these receivables. The amount of exposure to any
individual counter party is subject to a limit, which is assessed
by the Board.
The Group considers the credit ratings of banks in which it
holds funds in order to reduce exposure to credit risk.
Liquidity risk
In keeping with similar sized mineral exploration groups, the
Group's continued future operations depend on the ability to raise
sufficient working capital through the issue of equity share
capital or debt. The Directors are reasonably confident that
adequate funding will be forthcoming with which to finance
operations. Controls over expenditure are carefully managed
With exception to deferred taxation, financial liabilities are
all due within one year.
3.2. Capital risk management
The Group's objectives when managing capital are to safeguard
the Group's ability to continue as a going concern, to enable the
Group to continue its exploration and evaluation activities, and to
maintain an optimal capital structure to reduce the cost of
capital. In order to maintain or adjust the capital structure, the
Group may adjust the issue of shares or sell assets to reduce
debts.
At 31 December 2019 the Group had borrowings of GBPnil (31
December 2018: GBPnil) and defines capital based on the total
equity of the Company. The Group monitors its level of cash
resources available against future planned exploration and
evaluation activities and may issue new shares in order to raise
further funds from time to time.
Given the Group's level of debt versus its cash at bank and cash
equivalents, the gearing ratio is immaterial.
3.3. Sensitivity analysis
On the assumption that all other variables were held constant,
and in respect of the Group and the Company's expenses the
potential impact of a 10% increase/decrease in the UK Sterling:Euro
and UK Sterling:DKK Foreign exchange rates on the Group's loss for
the period and on equity is as follows:
Loss before tax for the Equity before tax for
Potential impact on year ended the year ended
Euro expenses: 2019 31 December 2019 31 December 2019
Group Company Group Company
Increase/(decrease)
in foreign exchange
rate GBP GBP GBP GBP
---------------------- ------------- --------------- ---------------- --------------
10% (1,815,118) (3,070,151) 36,212,767 39,143,962
-10% (1,798,764) (3,070,151) 35,386,153 39,143,962
Loss before tax for the Equity before tax for
Potential impact on year ended the year ended
DKK expenses: 2019 31 December 2019 31 December 2019
Group Company Group Company
Increase/(decrease)
in foreign exchange
rate GBP GBP GBP GBP
---------------------- --------------- ------------- -------------- ----------------
10% (1,854,789) (3,070,151) 37,595,930 39,143,962
-10% (1,759,093) (3,070,151) 34,002,990 39,143,962
4. Critical accounting estimates and judgements
The preparation of the Financial Statements in conformity with
IFRS requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amount of expenses during the
period. Actual results may vary from the estimates used to produce
these Financial Statements.
Estimates and judgements are regularly evaluated and are based
on historical experience and other factors, including expectations
of future events that are believed to be reasonable under the
circumstances.
Items subject to such estimates and assumptions, that have a
significant risk of causing a material adjustment to the carrying
amounts of assets and liabilities within the next financial years,
include but are not limited to:
Impairment of intangible assets - exploration and evaluation
costs
Exploration and evaluation costs have a carrying value at 31
December 2019 of GBP23,138,507 (2018: GBP15,478,246). Such assets
have an indefinite useful life as the Group has a right to renew
exploration licences and the asset is only amortised once
extraction of the resource commences. Management tests for
impairment annually whether exploration projects have future
economic value in accordance with the accounting policy stated in
Note 2.7. Each exploration project is subject to an annual review
by either a consultant or senior company geologist to determine if
the exploration results returned during the period warrant further
exploration expenditure and have the potential to result in an
economic discovery. This review takes into consideration long term
metal prices, anticipated resource volumes and supply and demand
outlook. In the event that a project does not represent an economic
exploration target and results indicate there is no additional
upside a decision will be made to discontinue exploration; an
impairment charge will then be recognised in the Income
Statement.
Included within intangible assets at 31 December 2019 is an
amount of GBP3,999,977 (2018: GBP3,983,108) in respect of projects
in Finland. In the previous year the Directors assessed this amount
as recoverable through a new strategy of entering into a joint
venture with a preferred partner. As at 31 December 2019 the
Directors have not finalised and agreed binding terms with a
preferred partner. The Directors have not recognised any impairment
to this amount because they consider that they will be able to
successfully finalise the terms and recover the carrying amount in
full. If a preferred partner cannot be located, then it is likely
that an impairment charge will be necessary in respect of Finish
projects and this is considered a critical accounting
judgement.
The Directors have reviewed the estimated value of each project
prepared by management and have concluded that the no impairment is
to be recognised.
Recoverability of the loan due from FinnAust Mining Finland
Oy
The Directors have assessed that there is no impairment required
to the Intangible assets in respect of the projects in Finland with
a carrying amount of GBP3,999,977. The Directors have not impaired
a receivable due from FinnAust Mining Finland Oy with a carrying
value of GBP6,764,324. The recoverability of this receivable is
dependent on the success of the underlying project in Finland.
Therefore, the carrying value of the receivable from FinnAust
Mining Finland Oy exceeds the carrying amount of the projects in
Finland by GBP2,764,347. The Directors consider that the receivable
due from FinnAust Mining Finland Oy will be recovered in full by
enterting into a joint venture with a preferred partner, however
the Group has not finalised such an arrangement and therefore the
recoverability of the receivable in the Company financial
statements is considered to be a critical accounting estimate.
VAT receivable
At 31 December 2019, the Group and Company have recognised an
amount of GBP588,302 (2018: GBP463,704) within trade and other
receivables which relates to VAT receivable. The amount is subject
to an on-going enquiry with HMRC, further details of which can be
found in Note 27. The Directors believe that the amount will be
recovered in full and therefore have not recognised any impairment
to the carrying value of this amount.
Useful economic lives of property, plant and equipment
The annual depreciation charge for property, plant and equipment
is sensitive to changes in the estimated useful economic lives and
residual values of the assets, taking into account that the assets
are not used throughout the whole year due to the seasonality of
the licence locations. The useful economic lives and residual
values are re-assessed annually. They are amended when necessary to
reflect current estimates, based on economic utilisation and the
physical condition of the assets. See note 6 for the carrying
amount of the property plant and equipment and note 2.9 for the
useful economic lives for each class of assets.
Share based payment transactions
The Group has made awards of options and warrants over its
unissued share capital to certain Directors as part of their
remuneration package. Certain warrants have also been issued to
shareholders as part of their subscription for shares and suppliers
for various services received. No share options or warrants were
issued in the current year.
The valuation of these options and warrants involves making a
number of critical estimates relating to price volatility, future
dividend yields, expected life of the options and forfeiture rates.
These assumptions have been described in more detail in Note
16.
Recovery of other receivables
Included in other receivables is an amount of GBP575,000 (2018:
GBPnil) as at 31 December 2019 in respect of unpaid ordinary share
capital issued on 25 November 2019. The Directors believe that the
amount will be recovered in full and therefore have not recognised
any impairment to the carrying value of this amount.
5. Segment information
Management has determined the operating segments based on
reports reviewed by the Board of Directors that are used to make
strategic decisions. During the period the Group had interests in
three geographical segments; the United Kingdom, Greenland and
Finland. Activities in the UK are mainly administrative in nature
whilst the activities in Greenland and Finland relate to
exploration and evaluation work.
The Group had no turnover during the period.
Greenland Finland UK Total
2019 GBP GBP GBP GBP
--------------------------------- ------------ ----------- ------------- -------------
Revenue - - - -
Administrative expenses (610,008) (167,185) (1,482,431) (2,259,624)
Foreign exchange (2,186) (550) (119,155) (121,891)
Finance income - - 6,454 6,454
Other income - 1,052 - 1,052
---------------------------------- ------------ ----------- ------------- -------------
Loss before tax per reportable
segment 478,481 81,770 1,246,690 1,806,941
Additions to PP&E 531,017 - 12,539 543,556
Additions to intangible
asset 7,573,396 267,624 - 7,841,020
Reportable segment assets 21,840,152 4,092,289 11,748,945 37,681,386
---------------------------------- ------------ ----------- ------------- -------------
Greenland Finland UK Total
2018 GBP GBP GBP GBP
--------------------------------- ------------ ----------- ------------- -------------
Revenue - - - -
Administrative expenses (499,927) (92,937) (1,207,987) (1,800,851)
Foreign exchange (155,111) (63,818) 195,172 (23,757)
Finance income - - 12,209 12,209
Other income - 2,409 - 2,409
Impairment of intangible
asset - 8,873,586 - (8,873,586)
Loss before tax per reportable
segment 478,708 8,707,376 1,590,602 10,776,686
Additions to PP&E 2,395,852 23,548 48,690 2,468,090
Additions to intangible
asset 5,148,986 1,102,983 - 6,251,969
Reportable segment assets 11,960,517 4,081,746 12,225,145 28,267,408
---------------------------------- ------------ ----------- ------------- -------------
6. Property, plant and equipment
Group
Right
of use Machinery Office
assets Software & equipment equipment Total
GBP GBP GBP GBP GBP
-------------------------- --------- ---------- -------------- ------------ -----------
Cost
As at 1 January 2018 - 12,664 671,011 11,340 695,015
Exchange Differences - - 6,204 - 6,204
Additions - 15,806 2,414,335 37,949 2,468,090
-------------------------- --------- ---------- -------------- ------------ -----------
As at 31 December 2018 - 28,470 3,091,550 49,289 3,169,309
-------------------------- --------- ---------- -------------- ------------ -----------
As at 1 January 2019 - 28,470 3,091,550 49,289 3,169,309
Exchange Differences - - (164,770) (274) (165,044)
IFRS 16 Adjustment 182,542 - - - 182,542
Additions - 8,623 531,017 3,916 543,556
Disposals - - (202,413) - (202,413)
-------------------------- --------- ---------- -------------- ------------ -----------
As at 31 December 2019 182,542 37,093 3,255,384 52,931 3,527,950
-------------------------- --------- ---------- -------------- ------------ -----------
Depreciation
As at 1 January 2018 - 8,113 48,292 7,556 63,961
Charge for the period - 6,363 235,935 8,292 250,590
Exchange differences - - 8,667 - 8,667
-------------------------- --------- ---------- -------------- ------------ -----------
As at 31 December 2018 - 14,476 292,894 15,848 323,218
-------------------------- --------- ---------- -------------- ------------ -----------
As at 1 January 2019 - 14,476 292,894 15,848 323,218
Charge for the year 40,565 10,796 436,487 12,631 500,479
Disposals - - (37,273) - (37,273)
Exchange differences - - (26,719) (178) (26,897)
-------------------------- --------- ---------- -------------- ------------ -----------
As at 31 December 2019 40,565 25,272 665,389 28,301 759,527
-------------------------- --------- ---------- -------------- ------------ -----------
Net book value as at 31
December 2018 - 13,994 2,798,656 33,441 2,846,091
-------------------------- --------- ---------- -------------- ------------ -----------
Net book value as at 31
December 2019 141,977 11,821 2,589,995 24,630 2,768,423
-------------------------- --------- ---------- -------------- ------------ -----------
Depreciation expense of GBP500,479 (31 December 2018:
GBP250,590) for the Group has been charged in administration
expenses.
Company
Right
of use Office
assets Software equipment Total
GBP GBP GBP GBP
----------------------------------- --------- ---------- ------------ ---------
Cost
As at 1 January 2018 - 12,664 9,033 21,697
Additions - 15,806 32,883 48,689
------------------------------------ --------- ---------- ------------ ---------
As at 31 December 2018 - 28,470 41,916 70,386
------------------------------------ --------- ---------- ------------ ---------
As at 1 January 2019 - 28,470 41,916 70,386
IFRS 16 Adjustment 182,542 - - 182,542
Additions - 8,623 3,916 12,539
------------------------------------ --------- ---------- ------------ ---------
As at 31 December 2019 182,542 37,093 45,832 265,467
------------------------------------ --------- ---------- ------------ ---------
Depreciation
As at 1 January 2018 - 8,113 5,251 13,364
Charge for the period - 6,363 6,382 12,745
------------------------------------ --------- ---------- ------------ ---------
As at 31 December 2018 - 14,476 11,633 26,109
------------------------------------ --------- ---------- ------------ ---------
As at 1 January 2019 - 14,476 11,633 26,109
Charge for the year 40,565 10,796 10,158 61,519
------------------------------------ --------- ---------- ------------ ---------
As at 31 December 2019 40,565 25,272 21,792 87,629
------------------------------------ --------- ---------- ------------ ---------
Net book value as at 31 December
2018 - 13,994 30,283 44,277
------------------------------------ --------- ---------- ------------ ---------
Net book value as at 31 December
2019 141,977 11,821 24,040 177,838
------------------------------------ --------- ---------- ------------ ---------
Depreciation expense of GBP61,519 (31 December 2018: GBP12,745)
for the Company has been charged in administration expenses.
7. Intangible assets
Intangible assets comprise exploration and evaluation costs.
Exploration and evaluation assets are all internally generated.
These are measured at cost and have an indefinite asset life. Once
the pre-production phase has been entered into, the exploration and
evaluation assets will cease to be capitalised and commence
amortisation.
Group
----------------------------
31 December 31 December
Exploration & Evaluation Assets - 2019 2018
Cost and Net Book Value GBP GBP
------------------------------------ ------------- -------------
Cost
As at 1 January 24,351,831 17,971,795
Additions 7,841,020 6,251,969
Exchange differences (180,759) 128,067
As at year end 32,012,092 24,351,831
------------------------------------ ------------- -------------
Provision for impairment
As at 1 January 8,873,585 -
Impairments - 8,873,585
As at year end 8,873,585 8,873,585
------------------------------------ ------------- -------------
Net book value 23,138,507 15,478,246
------------------------------------ ------------- -------------
The Dundas project in Greenland has a current JORC compliant
mineral resource of 117 million tonnes at 6.1% ilmenite (in-situ)
and has been confirmed as the highest-grade mineral sand ilmenite
project globally. Exploration projects in Finland and the Disko
project in Greenland are at an early stage of development and there
are no JORC (Joint Ore Reserves Committee) or non-JORC compliant
resource estimates available to enable value in use calculations to
be prepared. The Directors therefore 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.
In the previous year, the Directors recognised an impairment of
GBP8,873,585 in respect of exploration projects in Finland
following their impairment assessment because certain project areas
were no longer considered to be prospective and no further
exploration or evaluation work was planned or budgeted for. The
carrying value of the remaining project areas in Finland was
assessed by the Directors as recoverable through a new strategy of
identifying a preferred partner to enter into a joint venture
agreement. During 2019 there has been some progress in locating a
preferred partner, however no binding terms have been finalised and
agreed. The Directors do not consider that the Finish projects
should be impaired further based on being able to finalise terms
with a preferred partner in the future.
Following their assessment, the Directors concluded that no
impairment charge was required at 31 December 2019.
8. Financial assets measured at fair value
Group Company
------------------------------- ----------------------------
31 December 31 December 31 December 31 December
2019 2018 2019 2018
GBP GBP GBP GBP
------------------------------- ---------------- ------------- ------------- -------------
As at 1 January 330,402 - 330,402 -
Acquisition of quoted shares - 426,975 - 426,975
Disposal of quoted shares (998,535) - (998,535) -
Fair value gain 668,133 (96,573) 688,133 (96,573)
------------------------------- ---------------- ------------- ------------- -------------
As at year end - 330,402 - 330,402
------------------------------- ---------------- ------------- ------------- -------------
These investments are held for short-term trading purposes. At
the reporting date, all the shares had been sold.
The assets are measured in accordance with Level 1 of the fair
value hierarchy by using the quoted market price. There have been
no transfers between fair value levels during the year.
9. Investments in subsidiary undertakings
Company
----------------------------
31 December 31 December
2019 2018
GBP GBP
------------------------------- ------------- -------------
Shares in Group Undertakings
At beginning of period 2,000,002 9,700,002
Transfer of investment 58,340 -
Impairment charge (1,500,000) (7,700,000)
------------------------------- ------------- -------------
At end of period 558,342 2,000,002
------------------------------- ------------- -------------
Loans to Group undertakings 27,621,284 18,918,059
------------------------------- ------------- -------------
Total 28,179,626 20,918,061
------------------------------- ------------- -------------
Investments in Group undertakings are stated at cost, which is
the fair value of the consideration paid, less any impairment
provision.
During 2019, the Group fully impaired its investment in BJ
Mining Limited which had a carrying value of GBP1,500,000 following
a transfer of legal ownership to a third party 100% owned outside
the Group. Immediately prior to the transfer of legal ownership,
the assets held by BJ Mining Limited were transferred to Dundas
Titanium A/S
Subsidiaries
Proportion Proportion
of ordinary of ordinary
Country shares shares held
of incorporation held by by the Group
Registered office and place parent (%) Nature
Name of subsidiary address of business (%) of business
---------------------- ----------------------- -------------------- -------------- --------------- --------------
2nd Floor 7-9 Swallow
Centurion Mining Street, London, United
Limited England, W1B 4DE Kingdom 100% 100% Dormant
---------------------- ----------------------- -------------------- -------------- --------------- --------------
2nd Floor 7-9 Swallow
Centurion Universal Street, London, United
Limited England, W1B 4DE Kingdom 100% 100% Holding
---------------------- ----------------------- -------------------- -------------- --------------- --------------
Centurion Resources Schottenring 14 Austria Nil 100% Exploration
GmbH /525
1010 Vienna, Austria
--------------------------------------------- --------------------- -------------- --------------- --------------
2nd Floor 7-9 Swallow
Finland Investments Street, London, United
Limited England, W1B 4DE Kingdom 100% 100% Holding
---------------------- ----------------------- -------------------- -------------- --------------- --------------
FinnAust Mining Kummunkatu 23, Finland Nil 100% Exploration
Finland Oy FI-83500 Outokumpu,
Finland
---------------------- ----------------------- -------------------- -------------- --------------- --------------
FinnAust Mining Kummunkatu 23, Finland Nil 100% Exploration
Northern Oy FI-83500 Outokumpu,
Finland
---------------------- ----------------------- -------------------- -------------- --------------- --------------
2nd Floor 7-9 Swallow
Disko Exploration Street, London, United
Limited England, W1B 4DE Kingdom 100% 100% Exploration
---------------------- ----------------------- -------------------- -------------- --------------- --------------
Dundas Titanium c/o Nuna Advokater Greenland Nil 100% Exploration
A/S ApS, Qullilerfik
2, 6, Postboks 59,
Nuuk 3900, Greenland
---------------------- ----------------------- -------------------- -------------- --------------- --------------
All subsidiary undertakings are included in the
consolidation.
The proportion of the voting rights in the subsidiary
undertakings held directly by the parent company do not differ from
the proportion of ordinary shares held.
10. Trade and other receivables
Group Company
---------------------------- ----------------------------
31 December 31 December 31 December 31 December
2019 2018 2019 2018
Current GBP GBP GBP GBP
------------------------------------- ------------- ------------- ------------- -------------
Trade receivables 43,925 30,237 4,312 30,236
Amounts owed by Group undertakings - - 395,174 191,346
Prepayments 83,423 72,989 83,423 62,685
VAT receivable (See note 25) 619,957 517,178 588,302 463,704
Other receivables 712,450 148,556 657,160 92,649
------------------------------------- ------------- ------------- ------------- -------------
Total 1,459,755 768,960 1,728,371 840,620
------------------------------------- ------------- ------------- ------------- -------------
The fair value of all receivables is the same as their carrying
values stated above.
Included in other receivables is an amount of GBP575,000 (2018:
GBPnil) as at 31 December 2019 in respect of unpaid ordinary share
capital issued on 25 November 2019.
At 31 December 2019 all trade and other receivables were fully
performing. No ageing analysis is considered necessary as the Group
has no significant trade receivable receivables which would require
such an analysis to be disclosed under the requirements of IFRS
7.
The carrying amounts of the Group and Company's trade and other
receivables are denominated in the following currencies:
Group Company
---------------------------- ----------------------------
31 December 31 December 31 December 31 December
2019 2018 2019 2018
GBP GBP GBP GBP
--------------- ------------- ------------- ------------- -------------
UK Pounds 1,401,201 618,352 1,728,371 809,699
Euros 38,637 70,756 - -
Danish Krone 19,917 79,852 - 30,921
--------------- ------------- ------------- ------------- -------------
1,459,755 768,960 1,728,371 840,620
--------------- ------------- ------------- ------------- -------------
The maximum exposure to credit risk at the reporting date is the
carrying value of each class of receivable mentioned above. The
Group does not hold any collateral as security.
11. Cash and cash equivalents
Group Company
---------------------------- ----------------------------
31 December 31 December 31 December 31 December
2019 2018 2019 2018
GBP GBP GBP GBP
--------------------------- ------------- ------------- ------------- -------------
Cash at bank and in hand 10,314,701 8,843,709 10,197,337 8,777,619
--------------------------- ------------- ------------- ------------- -------------
All of the UK entities cash at bank is held with institutions
with an AA- credit rating. The Finland and Greenland entities cash
at bank is held with institutions whose credit rating is
unknown.
The carrying amounts of the Group and Company's cash and cash
equivalents are denominated in the following currencies:
Group Company
---------------------------- ----------------------------
31 December 31 December 31 December 31 December
2019 2018 2019 2018
GBP GBP GBP GBP
--------------- ------------- ------------- ------------- -------------
UK Pounds 10,212,030 8,781,031 10,197,337 8,777,619
Euros 38,236 4,762 - -
Danish Krone 64,435 57,916 - -
--------------- ------------- ------------- ------------- -------------
10,314,701 8,843,709 10,197,337 8,777,619
--------------- ------------- ------------- ------------- -------------
12. Trade and other payables
Group Company
---------------------------- ----------------------------
31 December 31 December 31 December 31 December
2019 2018 2019 2018
GBP GBP GBP GBP
------------------- ------------- ------------- ------------- -------------
Trade payables 1,015,968 514,490 932,125 326,225
Other creditors 98,705 125,671 248 13,861
Accrued expenses 128,174 143,675 63,803 129,468
------------------- ------------- ------------- ------------- -------------
1,242,847 783,836 996,176 469,554
------------------- ------------- ------------- ------------- -------------
Trade payables include amounts due of GBP898,395 in relation to
exploration and evaluation activities.
The carrying amounts of the Group and Company's trade and other
payables are denominated in the following currencies:
Group Company
---------------------------- ----------------------------
31 December 31 December 31 December 31 December
2019 2018 2019 2018
GBP GBP GBP GBP
--------------- ------------- ------------- ------------- -------------
UK Pounds 1,061,692 8,781,031 996,176 469,554
Euros 29,957 4,762 - -
Danish Krone 151,198 57,916 - -
--------------- ------------- ------------- ------------- -------------
1,242,847 8,843,709 996,176 469,554
--------------- ------------- ------------- ------------- -------------
13. Lease liabilities
Lease liabilities are effectively secured, as the rights to the
leased asset revert to the lessor in the event of default.
Group and Company
----------------------------
31 December 31 December
2019 2018
Lease liabilities GBP GBP
----------------------------------------------------- ------------- -------------
Not later than one year 80,814 -
Later than one year and no later than five years 62,220 -
Later than five years - -
143,034 -
------------- -------------
Future finance charges on finance lease liabilities 3,966 -
------------- -------------
Present value of finance lease liabilities 147,000 -
------------- -------------
For the year ended 31 December 2019, the total finance charges
were GBP2,492. The contracted and planned lease commitments were
discounted using the incremental borrowing rate of 3%.
14. Deferred tax
An analysis of deferred tax liabilities is set out below.
Group Company
-------------------- --------------
2019 2018 2019 2018
GBP GBP GBP GBP
--------------------------------- --------- --------- ------ ------
Deferred tax liabilities
- Deferred tax liability after
more than 12 months 496,045 496,045 - -
--------------------------------- --------- --------- ------ ------
Deferred tax liabilities 496,045 496,045 - -
--------------------------------- --------- --------- ------ ------
The Group has additional capital losses of approximately
GBP8,883,046 (2018: GBP8,873,586) and other losses of approximately
GBP6,181,673 (2018: GBP5,897,843) available to carry forward
against future taxable profits. No deferred tax asset has been
recognised in respect of these tax losses because of uncertainty
over the timing of future taxable profits against which the losses
may be offset.
15. Financial Instruments by Category
31 December 2019 31 December
Group 2018
---------------------------------------- ----------- ----------------------
Amortised Amortised
cost FVTPL Total cost FVTPL Total
Assets per Statement of GBP GBP
Financial
Performance GBP GBP GBP GBP
------------------------------- ------------ ----------- ------------- ----------- --------- -----------
Trade and other receivables
(excluding prepayments) 1,376,332 - 1,376,332 695,971 - 695,971
Financial assets at fair
value
through profit or loss - - - - 330,402 330,402
Cash and cash equivalents 10,314,701 - 10,314,701 8,843,709 - 8,843,709
------------ ----------- ------------- ----------- --------- -----------
11,691,033 - 11,691,033 9,539,680 330,402 9,870,082
------------ ----------- ------------- ----------- --------- -----------
31 December
31 December 2019 2018
Amortised Amortised
cost Total cost Total
Liabilities per Statement
of Financial Performance GBP GBP GBP GBP
------------------------------- ------------ ----------- ------------- -----------
Trade and other payables
(excluding
non-financial liabilities) 1,242,847 1,242,847 783,836 783,836
Finance lease liability 143,034 143,034 - -
------------ ----------- ------------- -----------
1,385,881 1,385,881 783,836 783,836
------------ ----------- ------------- -----------
Company
31 December 2019 31 December 2018
Amortised Amortised
cost FVTPL Total cost FVTPL Total
Assets per Statement of
Financial Performance GBP GBP GBP GBP GBP GBP
------------------------------ -------------- ----------- -------------- ----------- --------- -----------
Trade and other receivables
(excluding prepayments) 1,644,498 - 1,644,498 777,935 - 777,935
Financial assets at fair
value through profit or
loss - - - - 330,402 330,402
Cash and cash equivalents 10,197,337 - 10,197,337 8,777,619 - 8,777,619
-------------- ----------- -------------- ----------- --------- -----------
11,841,835 - 11,841,835 9,555,554 330,402 9,885,956
-------------- ----------- -------------- ----------- --------- -----------
31 December 2019 31 December 2018
At amortised At amortised
cost Total cost Total
Liabilities per Statement
of Financial Performance GBP GBP GBP GBP
------------------------------ -------------- ----------- -------------- -----------
Trade and other payables
(excluding non-financial
liabilities) 996,176 996,176 469,554 469,554
Finance lease liability 143,034 143,034 - -
-------------- ----------- -------------- -----------
1,139,210 1,139,210 469,554 469,554
-------------- ----------- -------------- -----------
16. Share capital and premium
Group and Company Number of shares Share capital
---------------------------------- ----------------------------
31 December 31 December 31 December 31 December
2019 2018 2019 2018
---------------------- ---------------- ---------------- ------------- -------------
Ordinary shares 969,969,397 850,007,782 96,996 85,001
Deferred shares 558,104,193 558,104,193 558,104 588,104
Deferred A shares 68,289,656,190 71,271,328,120 6,828,966 7,127,132
---------------------- ---------------- ---------------- ------------- -------------
Total 69,817,729,780 72,709,440,095 7,484,066 7,800,237
---------------------- ---------------- ---------------- ------------- -------------
Number of
Ordinary Share capital Share premium Total
Issued at 0.01 pence per share shares GBP GBP GBP
------------------------------------ ------------- --------------- --------------- ------------
At 1 January 2018 771,357,866 77,136 27,220,576 27,297,712
------------------------------------ ------------- --------------- --------------- ------------
Issue of new shares - 11 January
2018 143,495 14 22,486 22,500
Issue of new shares - 1 February
2018 (1) 77,272,728 7,728 16,351,200 16,358,928
Issue of new shares - 23 May
2018 97,835 10 22,490 22,500
Exercise of options - 1 October
2018 1,000,000 100 99,900 100,000
Issue of new shares - 19 October
2018 135,858 13 22,487 22,500
As at 31 December 2018 850,007,782 85,001 43,739,139 43,824,140
------------------------------------ ------------- --------------- --------------- ------------
As at 1 January 2019 850,007,782 85,001 43,739,139 43,824,140
------------------------------------ ------------- --------------- --------------- ------------
Issue of new shares - 24 January
2019 1,461,615 145 102,167 102,312
Issue of new shares - 24 January
2019 1,000,000 100 59,900 60,000
Exercise of options - 2 May
2019 300,000 30 29,970 30,000
Exercise of options - 10 May
2019 2,200,000 220 219,780 220,000
Issue of new shares - 25 November
2019 (2) 75,000,000 7,500 7,316,700 7,324,200
Issue of new shares - 12 December
2019 40,000,000 4,000 3,996,000 4,000,000
------------------------------------ ------------- --------------- --------------- ------------
As at 31 December 2019 969,969,397 96,996 55,463,656 55,560,652
------------------------------------ ------------- --------------- --------------- ------------
(1) Includes issue costs of GBP641,071
(2) Includes issue costs of GBP175,800
Deferred Shares (nominal value of 0.1 Number of Deferred Share capital
pence per share) shares GBP
------------------------------------------ -------------------- ---------------
As at 1 January 2018 588,104,193 588,104
------------------------------------------ -------------------- ---------------
As at 31 December 2018 588,104,193 588,104
------------------------------------------ -------------------- ---------------
As at 1 January 2019 588,104,193 588,104
------------------------------------------ -------------------- ---------------
Other equity adjustment (30,000,000) (30,000)
------------------------------------------ -------------------- ---------------
As at 31 December 2019 558,104,193 558,104
------------------------------------------ -------------------- ---------------
Deferred A Shares (nominal value of 0.1 Number of Deferred Share capital
pence per share) A shares GBP
-------------------------------------------- -------------------- ---------------
As at 1 January 2018 71,271,328,120 7,127,132
-------------------------------------------- -------------------- ---------------
As at 31 December 2018 71,271,328,120 7,127,132
-------------------------------------------- -------------------- ---------------
As at 1 January 2019 71,271,328,120 7,127,132
-------------------------------------------- -------------------- ---------------
Other equity adjustment (2,981,671,930) (298,167)
-------------------------------------------- -------------------- ---------------
As at 31 December 2019 68,289,656,190 6,828,966
-------------------------------------------- -------------------- ---------------
On 24 January 2019 the Company issued and allotted 1,461,615 new
Ordinary Shares at a price of 7 pence per share per share as an
exercise of warrants. On this same day the Company issued and
allotted 1,000,000 new Ordinary Shares at a price of 6 pence per
share as an exercise of warrants.
On 2 May 2019 the Company issued and allotted 300,000 new
Ordinary Shares at a price of 10 pence per share as an exercise of
options.
On 10 May 2019 the Company issued and allotted 2,200,000 new
Ordinary Shares at a price of 10 pence per share as an exercise of
options.
On 25 November 2019 the Company raised GBP7,500,000 via the
issue and allotment of 75,000,000 new Ordinary Shares at a price of
10 pence per share.
On 12 December 2019 the Company raised GBP4,000,000 via the
issue and allotment of 40,000,000 new Ordinary Shares at a price of
10 pence per share.
The Directors have corrected an error in the number of Deferred
and Deferred A shares in the year ended 31 December 2019 relating
to a share repurchase in 2011 which was not recorded correctly in
the financial statements. This is not material and has therefore
not amounted to a prior period adjustment. The correcting entry is
a recategorisation of GBP328,167 recorded within share capital
which should have been recorded in the capital redemption reserve.
The adjustment has no impact on the Company or Group's net assets
or profit or loss.
There is an amount of GBP575,000 which has not been paid as at
31 December 2019 in respect of the ordinary share capital issued on
25 November 2019 which is recorded in other receivables.
17. Share based payments
The Company has established a share option scheme for Directors,
employees and consultants to the Group. Share options and warrants
outstanding and exercisable at the end of the period have the
following expiry dates and exercise prices:
Options & Warrants
Exercise price in 31 December 31 December
Grant Date Expiry Date GBP per share 2019 2018
------------------- ------------------ ------------------- ------------- -------------
29 November 2013 29 May 2019 0.10 - 5,000,000
4 March 2016 3 March 2019 0.06 - 1,000,000
17 December
17 December 2016 2021 0.07 1,228,153 2,689,768
9 June 2017 9 June 2022 0.165 1,025,000 1,025,000
17 October 2017 17 October 2020 0.20 5,350,000 5,350,000
17 October 2017 17 October 2020 0.25 5,350,000 5,350,000
17 October 2017 17 October 2020 0.30 5,350,000 5,350,000
23 July 2019 23 July 2023 0.10 5,200,000 -
23 July 2019 23 July 2023 0.15 5,200,000 -
23 July 2019 23 July 2023 0.20 5,600,000 -
------------------- ------------------ ------------------- ------------- -------------
34,303,153 25,764,768
-------------------------------------- ------------------- ------------- -------------
The Company and Group have no legal or constructive obligation
to settle or repurchase the options or warrants in cash.
The fair value of the share options and warrants was determined
using the Black Scholes valuation model. The parameters used are
detailed below:
2016 Options 2017 Options 2017 Options 2017 Options
-------------- -------------- -------------- --------------
Granted on: 17/12/2016 9/6/2017 17/10/2017 17/10/2017
Life (years) 5 years 5 years 3 years 3 years
Share price (pence per
share) 7p 15.5p 17.75p 17.75p
Risk free rate 0.81% 0.56% 0.5% 0.5%
Expected volatility 17.64% 31.83% 13.85% 13.85%
Expected dividend yield - - - -
Marketability discount 20% 20% 20% 20%
Total fair value (GBP000) 17 34 42 8
2017 Options 2019 Options 2019 Options 2019 Options
-------------- -------------- -------------- --------------
Granted on: 17/10/2017 23/7/2019 23/7/2019 23/7/2019
Life (years) 4 years 4 years 4 years 4 years
Share price (pence per
share) 17.75p 7.45p 7.45p 7.45p
Risk free rate 0.5% 0.5% 0.5% 0.5%
Expected volatility 13.85% 21.64% 21.64% 21.64%
Expected dividend yield - - - -
Marketability discount 20% 20% 20% 20%
Total fair value (GBP000) 1 31 5 1
The expected volatility of the 2016, 2017 and 2019 options is
based on historical volatility for the six months prior to the date
of granting.
The risk-free rate of return is based on zero yield government
bonds for a term consistent with the option life.
A reconciliation of options and warrants granted over the year
to 31 December 2019 is shown below:
2019 2018
----------------------------- -----------------------------
Weighted Weighted
average average
exercise exercise
Number price (GBP) Number price (GBP)
--------------------------- ------------- -------------- ------------- --------------
Outstanding at beginning
of period 25,764,768 0.1913 26,764,768 0.1879
Expired (2,500,000) - - -
Exercised (4,961,615) 0.085 (1,000,000) 0.1000
Granted 16,000,000 - - -
--------------------------- ------------- -------------- ------------- --------------
Outstanding as at period
end 34,303,153 0.1898 25,764 ,768 0.1913
--------------------------- ------------- -------------- ------------- --------------
Exercisable at period
end 34,303,153 0.1898 25,764,768 0.1913
--------------------------- ------------- -------------- ------------- --------------
2019 2018
--------------------------------------------------- ----------------------------------------------------
Weighted Weighted Weighted Weighted
Range Weighted average average Weighted average average
of average remaining remaining average remaining remaining
exercise exercise life life exercise life life
prices price Number expected contracted price Number expected contracted
(GBP) (GBP) of shares (years) (years) (GBP) of shares (years) (years)
----------- ---------- ------------ ----------- ------------ ----------- ------------ ----------- ------------
0 - 0.05 - - - - - - - -
0.05 -
2.00 0.1898 34,303,153 3.68 3.68 0.1913 25,764,768 1.65 1.65
----------- ---------- ------------ ----------- ------------ ----------- ------------ ----------- ------------
During the period there was a charge of GBP36,175 (2018: GBPnil)
in respect of share options.
18. Other reserves
Group
---------- -------------------------------------------------------------------------
Foreign
currency Reverse Share
Merger translation acquisition Redemption option
reserve reserve reserve reserve reserve Total
GBP GBP GBP GBP GBP GBP
--------------------------- ---------- -------------- -------------- ------------ ---------- -------------
At 31 December 2018 166,000 959,712 (8,071,001) 36,463 108,934 (6,799,892)
--------------------------- ---------- -------------- -------------- ------------ ---------- -------------
Currency translation
differences - (1,153,814) - - - (1,153,814)
Exercised options - - - - (13,605) (13,605)
Expired Options - - - - (1,598) (1,598)
Issued Options - - - - 36,175 36,175
Other equity adjustments - - - 328,167 - 328,167
--------------------------- ---------- -------------- -------------- ------------ ---------- -------------
At 31 December 2019 166,000 (194,102) (8,071,001) 364,630 129,906 (7,604,567)
--------------------------- ---------- -------------- -------------- ------------ ---------- -------------
Company
--------------------------------------------------
Share
Merger Redemption option
reserve reserve reserve Total
GBP GBP GBP GBP
--------------------------- ---------- ------------ ---------- ----------
At 31 December 2018 166,000 36,463 108,934 311,397
---------------------------- ---------- ------------ ---------- ----------
Exercised options - - (13,605) (13,605)
Expired Options - - (1,598) (1,598)
Issued Options - - 36,175 36,175
Other equity adjustments - 328,167 - 328,167
---------------------------- ---------- ------------ ---------- ----------
At 31 December 2019 166,000 364,630 129,906 660,536
---------------------------- ---------- ------------ ---------- ----------
19. Employee benefit expense
Group Company
------------------------------ ------------------------------
Year ended Year ended Year ended Year ended
31 December 31 December 31 December 31 December
2019 2018 2019 2018
Staff costs (excluding Directors) GBP GBP GBP GBP
------------------------------------ -------------- -------------- -------------- --------------
Salaries and wages 948,450 790,179 438,012 279,567
Social security costs 77,095 108,061 25,322 9,836
Retirement benefit costs 5,084 1,616 5,084 1,374
------------------------------------ -------------- -------------- -------------- --------------
1,030,629 899,856 468,418 290,777
------------------------------------ -------------- -------------- -------------- --------------
The average monthly number of employees for the Group during the
year was 16 (year ended 31 December 2018:16) and the average
monthly number of employees for the Company was 10 (year ended 31
December 2018: 9).
Of the above Group staff costs, GBP763,055 (year ended 31
December 2018: GBP485,063) has been capitalised in accordance with
IFRS 6 as exploratory related costs and are shown as an intangible
addition in the year.
20. Directors' remuneration
Year ended 31 December 2019
Short-term Post-employment Share based
benefits benefits payments Total
GBP GBP GBP GBP
--------------------------- ------------ ----------------- ------------- ---------
Executive Directors
Roderick McIllree 57,612 1,143 - 58,755
Bo Stensgaard (1) 113,438 - - 113,438
Non-executive Directors
Ian Henderson 50,000 - - 50,000
Garth Palmer (2) 22,636 619 - 23,255
Peter Waugh 24,000 492 - 24,492
Michael Hutchinson 25,000 - - 25,000
292,686 2,254 - 294,940
------------ ----------------- ------------- ---------
Of the above Group directors' remuneration, GBP44,412 (31
December 2018: GBP42,905) has been capitalised in accordance with
IFRS 6 as exploratory related costs and are shown as an intangible
addition in the year.
Year ended 31 December
2018
Short-term Post-employment Share based
benefits benefits payments Total
GBP GBP GBP GBP
--------------------------- ------------ ----------------- ------------- ---------
Executive Directors
Roderick McIllree 182,783 640 - 183,423
Non-executive Directors
Greg Kuenzel (3) 10,286 5 - 10,291
Ian Henderson 19,022 - - 19,022
Garth Palmer 16,114 330 - 16,444
Peter Waugh 24,000 - - 24,000
Michael Hutchinson 25,000 315 - 25,315
277,205 1,290 - 278,495
------------ ----------------- ------------- ---------
(1) Bo Stensgaard was appointed on 13 August 2019
(2) Garth Palmer resigned on 12 December 2019
(3) Gregory Kuenzel resigned on 2 June 2018
Details of fees paid to Companies and Partnerships of which the
Directors detailed above are Directors and Partners have been
disclosed in Note 28.
The remuneration of Directors and key executives is determined
by the remuneration committee having regard to the performance of
individuals and market trends.
21. Finance income
Group
------------------------------
Year ended Year ended
31 December 31 December
2019 2018
GBP GBP
--------------------------------------------------- -------------- --------------
Interest received from cash and cash equivalents 6,454 12,209
--------------------------------------------------- -------------- --------------
Finance Income 6,454 12,209
--------------------------------------------------- -------------- --------------
22. Other gain/(losses)
Group
------------------------------
Year ended Year ended
31 December 31 December
2019 2018
GBP GBP
------------------------------------------------ -------------- --------------
Gain/(Loss) on financial assets measured
at fair value through profit or loss 668,133 (96,573)
Loss on sale of property, plant and equipment (71,644) -
Other gains (29,421) 3,462
------------------------------------------------ -------------- --------------
Other gain/(losses) 567,068 (93,111)
------------------------------------------------ -------------- --------------
23. Income tax expense
No charge to taxation arises due to the losses incurred.
The tax on the Group's loss before tax differs from the
theoretical amount that would arise using the weighted average tax
rate applicable to the losses of the consolidated entities as
follows:
Group
------------------------------
Year ended Year ended
31 December 31 December
2019 2018
GBP GBP
------------------------------------------------ -------------- --------------
Loss before tax (1,806,941) (10,776,686)
------------------------------------------------ -------------- --------------
Tax at the applicable rate of 21.96% (2018:
21.82% ) (396,804) (2,187,667)
Effects of:
Expenditure not deductible for tax purposes 122,433 1,807,738
Depreciation in excess of/(less than) capital
allowances (9,460) (450,153)
Net tax effect of losses carried forward 283,831 830,082
------------------------------------------------ -------------- --------------
Tax charge - -
------------------------------------------------ -------------- --------------
The weighted average applicable tax rate of 21.96% (2018:
21.82%) used is a combination of the 19% standard rate of
corporation tax in the UK, 20% Finnish corporation tax and 30%
Greenlandic corporation tax.
The Group has a potential deferred income tax asset of
approximately GBP1,189,029 (2018: GBP1,179,569) due to tax losses
available to carry forward against future taxable profits. The
Company has tax losses of approximately GBP6,181,673 (2018:
GBP5,897,843) available to carry forward against future taxable
profits. No deferred tax asset has been recognised on accumulated
tax losses because of uncertainty over the timing of future taxable
profits against which the losses may be offset.
24. Earnings per share
Group
The calculation of the total basic earnings per share of (0.21)
pence (31 December 2018: (1.279) pence) is based on the loss
attributable to equity holders of the parent company of
GBP1,806,941 (31 December 2018: GBP10,776,686) and on the weighted
average number of ordinary shares of 969,969,397 (31 December 2018:
842,546,640) in issue during the year.
In accordance with IAS 33, basic and diluted earnings per share
are identical for the Group as the effect of the exercise of share
options would be to decrease the earnings per share. Details of
share options that could potentially dilute earnings per share in
future periods are set out in Note 17 .
25. Expenses by nature
Group
------------------------------
Year ended Year ended
31 December 31 December
2019 2018
GBP GBP
---------------------------------- -------------- --------------
Employee expenses 437,329 281,158
Establishment expenses 105,971 91,211
Travel & subsistence 130,708 141,906
Professional & consultancy fees 897,713 930,372
IT & Software 17,605 9,795
Insurance 76,157 54,832
Depreciation 500,479 250,590
Share Option expense 36,175 -
Other expenses 57,487 40,987
---------------------------------- -------------- --------------
Total administrative expenses 2,259,624 1,800,851
---------------------------------- -------------- --------------
Services provided by the Company's auditor and its
associates
During the year, the Group (including overseas subsidiaries)
obtained the following services from the Company's auditors and its
associates:
Group
------------------------------
Year ended Year ended
31 December 31 December
2019 2018
GBP GBP
-------------------------------------------------- -------------- --------------
Fees payable to the Company's auditor and its
associates for the audit of the Parent Company
and Consolidated Financial Statements 65,655 47,000
Fees payable to the Company's auditor for tax
compliance & other services 20,868 70,778
-------------------------------------------------- -------------- --------------
26. Commitments
(a) Royalty agreements
As part of the contractual arrangement with Magnus Minerals
Limited ('Magnus') the Group has agreed to pay royalties on revenue
from mineral sales arising from mines developed by the Group. Under
the terms of the respective Royalty Agreements between Magnus and
the Company, the Group shall pay the following:
-- 0.5% of net smelter returns over mineral production from the Kainuu Schist Belt tenements;
-- 1.0% of net smelter returns over mineral production from the
Outokumpu Savonara Mine Belt tenements;
-- 1.5% of net smelter returns over mineral production from the Enonoski Area tenements; and
-- 2.5% of net smelter returns over mineral production from the Hammaslahti Area tenements.
The Enonoski and Hammaslahti Royalty Agreements further provide
that royalty entitlements may be extended to future rights with the
respective areas of influence defined with the agreements.
Additionally, under the terms of the Kainuu Schist Belt Royalty
Agreement and the Outokumpu Savonara Mine Belt Royalty Agreement
the Group is obligated to pay SES Finland Limited a 0.5% net
smelter royalty in respect of production from the associated
tenements and Western Areas Limited ("Western Areas") 0.5% of net
smelter returns over mineral production of the tenements using a
biological leaching technology owned by Western Areas.
(b) License commitments
Bluejay now owns 7 mineral exploration licenses in Greenland.
Licence 2015/08 and 2019/114 is a part of the Dundas project and
licences 2011/31, 2012/29, 2017/01, 2018/16 and 2019/116 are part
of the Disko projects in Greenland. These licences include
commitments to pay annual licence fees and minimum spend
requirements.
As at 31 December 2019 these are as follows:
Group
--------------------------------------------
Group License Minimum
fees spend requirement Total
GBP GBP GBP
--------------------------------------------- --------- -------------------- -----------
Not later than one year 3,009 - 3,009
Later than one year and no later than five
years 14,234 5,768,829 5,783,063
--------------------------------------------- --------- -------------------- -----------
Total 17,243 5,768,829 5,768,072
--------------------------------------------- --------- -------------------- -----------
As a result of the COVID-19 pandemic, the Greenland Government
has approved that there will be no mineral exploration licence
spend obligations for the period 1 January 2020 until 31 December
2020.
27. Contingent liabilities
The Directors are in the process of appealing an assessment made
by HMRC which relates to the Company's ability to claim input VAT
because, in the view of HMRC, the Company does not technically
constitute a business for the purposes of VAT and is not eligible
to make such claims in connection with services it supplied to the
Company's subsidiaries. The initial assessment raised by HMRC is
for an amount of GBP255,492 and relates to input VAT claimed and
repaid by HMRC between 2012-2015. At the point the assessment was
raised, HMRC ceased to repay any further claims for input VAT made
by the Company. The Company has continued to submit the appropriate
returns to HMRC and as a result, the Company has a receivable from
HMRC of GBP588,302 at 31 December 2019 which is included within
trade and other receivables. HMRC has made a further protective
assessment for this amount, bringing the total amount of the
dispute at 31 December 2019 to GBP843,794.
The Directors strongly refute the view of HMRC that the Company
does not constitute a business for VAT purposes. As at the date of
release, the case is yet to be heard in front of a Tribunal.
Tribunal was scheduled for March 2020, however due to COVID-19, it
has been pushed back indefinitely. The Company has engaged
professional services of legal counsel who will be representing it
before the Tribunal. Counsel confirms the Company has a strong
case.
Accordingly, the Directors believe that the amount of GBP843,794
will be recovered in full and therefore have not recognised any
impairment to the carrying value of this amount.
28. Related party transactions
Loans to Group undertakings
Amounts receivable as a result of loans granted to subsidiary
undertakings are as follows:
Company
----------------------------
31 December 31 December
2019 2018
GBP GBP
----------------------------- ------------- -------------
Finland Investments Ltd - -
FinnAust Mining Finland Oy 6,764,324 6,398,621
Centurion Mining Limited 345 345
BJ Mining Limited - 1,010,623
Dundas Titanium A/S 19,785,147 11,112,258
Disko Exploration Limited 980,121 396,212
----------------------------- ------------- -------------
At 31 December (Note 9 ) 27,529,937 18,918,059
----------------------------- ------------- -------------
Loans granted to subsidiaries have increased during the year due
to additional loans being granted to the subsidiaries, and foreign
exchange loss of GBP1,344,308, given that no loans were repaid
during the year.
These amounts are unsecured and repayable in Euros and Danish
Krone when sufficient cash resources are available in the
subsidiaries.
All intra Group transactions are eliminated on
consolidation.
Other transactions
The Group defines its key management personnel as the Directors
of the Company as disclosed in the Directors' Report.
Heytesbury Corporate LLP, a limited liability partnership of
which Garth Palmer is a partner, was paid a fee of GBP84,000 for
the year ended 31 December 2019 (31 December 2018: GBP84,000) for
the provision of corporate management, accounting and consulting
services to the Company. There was a balance of GBP9,622 owing at
year end (31 December 2018: GBP8,537).
RM Corporate Limited, a limited company of which Roderick
McIllree is a director, was paid a fee of GBP221,996 for the year
ended 31 December 2019 (31 December 2018: GBP126,996) for the
provision of corporate management and consulting services to the
Company. There was a balance of GBP12,700 owing at year end (31
December 2018: GBP12,700).
PMW Consultancy Services, operated by Peter Waugh as a sole
trader, was paid a fee of GBP35,664 for the year ended 31 December
2019 (31 December 2018: GBP52,600) for consulting services to the
Company. There was a balance of GBP10,000 owing at year end (31
December 2018: GBP10,000).
Greenland Gas & Oil Limited, a limited company of which
Roderick McIllree is a director, was paid a fee of GBPnil for the
year ended 31 December 2019 (31 December 2018: GBP9,300) for
geological information systems consulting services to the Company.
There was no balance outstanding at the year-end (31 December 2018:
GBPnil).
29. Ultimate controlling party
The Directors believe there is no ultimate controlling
party.
30. Events after the reporting date
On 11 March 2020, the World Health Organisation declared the
Coronavirus outbreak to be a pandemic in recognition of its rapid
spread across the globe, with over 200 countries now affected. Many
governments are taking increasingly stringent steps to help contain
or delay the spread of the virus and as a result there is a
significant increase in economic uncertainty.
For the Group's 31 December 2019 financial statements, the
Coronavirus outbreak and the related impacts are considered
non-adjusting events. Consequently, there is no impact on the
recognition and measurement of assets and liabilities. Due to the
uncertainty of the outcome of current events, the Group cannot
reasonably estimate the impact these events will have on the
Group's financial position, results of operations or cash flows in
the future.
**ENDS**
For further information please visit
http://www.bluejaymining.com or contact:
Roderick McIllree Bluejay Mining plc +44 (0) 20 7907 9326
Kevin Sheil Bluejay Mining plc +44 (0) 20 7907 9326
------------------------------- ----------------------
SP Angel Corporate Finance
LLP
Ewan Leggat (Nominated Adviser) +44 (0) 20 3470 0470
------------------------------- ----------------------
SP Angel Corporate Finance
LLP
Soltan Tagiev (Nominated Adviser) +44 (0) 20 3470 0470
------------------------------- ----------------------
Hannam & Partners (Advisory)
Andrew Chubb LLP +44 (0) 20 7907 8500
------------------------------- ----------------------
Charlotte Page St Brides Partners Ltd +44 (0) 20 7236 1177
------------------------------- ----------------------
Cosima Akerman St Brides Partners Ltd +44 (0) 20 7236 1177
------------------------------- ----------------------
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.
END
FR EAESEAEDEEAA
(END) Dow Jones Newswires
May 21, 2020 02:00 ET (06:00 GMT)
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