TIDMPOW
RNS Number : 4381R
Power Metal Resources PLC
30 June 2020
Power Metal Resources plc / EPIC: POW / Market: AIM
30 June 2020
Power Metal Resources plc ("POW" or the "Company")
Interim Results
Power Metal Resources plc the AIM listed metals exploration and
development company is pleased to announce its unaudited interim
results for the six months period ended 31 March 2020.
Operational Highlights
In the Half Year to 31 March 2020:
-- POW confirmed its election to earn-in to a 40% project
interest at the Molopo Farms Complex project ("MFC Project") in
Botswana, with various operational updates and notably the
confirmation of high profile nickel sulphide targets for a 2020
drilling programme;
-- POW and its Joint Venture ("JV") partner Katoro Gold Plc
("Katoro Gold") (LON:KAT) released an update demonstrating nickel
sulphide & laterite, platinum group metals, gold, lithium and
rare earth exploration potential at the Haneti Polymetallic Project
in Tanzania where POW holds a 25% interest and can acquire a
further 10% interest by paying Katoro Gold a further GBP25,000 by
31 August 2020;
-- The Company commenced a pitting and mapping exploration
programme at its 70% owned Kisinka copper-cobalt project in The
Democratic Republic of the Congo ("DRC") following the
identification of a 6.8KM copper anomaly in the Company's licence
in 2019;
-- A conditional transaction was announced to acquire an earn-in
right over the Alamo gold project in Arizona, USA, subject to
completion of due diligence;
-- A financing was undertaken in December 2019 raising GBP700,000 for the Company;
-- POW directors acquired a further 16,850,000 POW shares
investing through participation in the December 2019 POW financing
and through the purchase of shares on market at a total cost of
GBP69,488.
After 31 March 2020:
-- In April 2020, POW announced the conditional acquisition of a
51% interest in the Ditau project held by Kavango Resources plc
(LON:KAV) for GBP150,000 payable solely through the issue of POW
new ordinary shares and subject to satisfactory due diligence;
-- POW provided an update on the MFC Project in Botswana
including, reflecting the scale of the project and the larger than
expected number of high-profile targets, the creation of four
target groups Chipo - Northern Targets, Tshepo - Central Targets,
Galaletsang - Southern Targets and Tshenolo - Western Magnetic
Targets;
-- With the agreement of all parties and due to Covid-19
disruption the due diligence period at the Alamo gold project in
Arizona, USA was extended to 30 June 2020;
-- In April 2020 POW announced the creation of a new gold
exploration Joint Venture ("JV") focused on the highly sought-after
Victoria Goldfields in Australia and the acquisition of a 49.9%
stake in the JV Australian operating company Red Rock Australasia
Pty Limited;
-- Further project expansion updates were made covering the
Australian gold JV and, by June 2020, the JV company had a land
package comprising of exploration licence applications covering
1,835 sq km, one of the largest in the Victoria Goldfields
area;
-- In May 2020 the JV partners POW and Katoro Gold announced
commercial updates in respect of the Haneti Polymetallic project in
Tanzania confirming expressions of interest from third parties with
a view to earn-in, JV or similar. The JV partners are continuing to
assess optimisation of the ownership structure for Haneti to
reflect third party negotiations;
-- POW confirmed safe and successful completion of the Kisinka
field programme in the DRC in May 2020 and, subject to Covid-19
restrictions, the advancement to XRF and assay testing of samples
to assess copper and cobalt mineralisation;
-- The Company released its accounts for the year ended 30
September 2020 in May 2020 with an extension granted by Companies
House and the London Stock Exchange due to Covid-19 and related
challenges experienced by the Company's auditors;
-- In May 2020 POW released a new corporate presentation and in
June 2020 the Company completed and announced a corporate website
update and noted its first broker reports with an Initiation Broker
Research Note issued by First Equity Limited and a Broker Note
covering the Victoria Goldfields by SI Capital Limited;
-- Paul Johnson, POW CEO, acquired a further 5,500,000 POW
shares through the purchase of shares on market at a total cost of
GBP22,050.
Financial Highlights for the Half Year Ended 31 March 2020:
-- Loss for the period, attributable to owners of the parent of
GBP0.24 million (2019: GBP0.32 million), resulting in a loss per
share of 0.05 pence (2019: 0.17 pence); and
-- Net assets of GBP2.0 million at the period end (30 September 2019: GBP1.6 million).
Statement by Paul Johnson, Chief Executive Officer:
"POW now has a diverse business model, with a new and developing
gold joint venture interest in Australia and base metal interests
in Africa. As a Company we are targeting large scale metal
discoveries and in the Board's opinion each project interest we
hold has the potential to deliver a large-scale discovery or
discoveries.
From a corporate perspective POW is still undertaking due
diligence on new project opportunities albeit the emphasis now is
the operational and corporate development of existing portfolio
interests.
For those projects we choose to continue to operate, this will
be through active exploration programmes. For those projects where
we see corporate development as the best option, this will entail
commercialisation transactions to further bolster our financial
strength.
Our aim is to have exploration-driven high impact project
interests that deliver a consistent flow of news to the market.
Underpinning those exploration projects, we want to develop a
'balance sheet' of substance, with a key objective of financial
self-sufficiency, so we are not reliant on the market for
financings through equity placings. We are making progress on both
counts though there is plenty more ongoing work to do.
At this point I would like to thank all POW shareholders for
your support. Our sector is generally high risk and our objective
of seeking large scale metal discoveries is acutely challenging.
However, it is also true that should POW be fortunate enough to
make a large-scale metal discovery, as is our objective, we could
materially change the lives of our shareholders. To that end, it is
a venture worth pursuing and I respect and appreciate all
shareholders, large and small, who have placed their trust in POW
and are engaged with our developing story."
Certain information contained in this announcement would have
been deemed inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 until the release of this
announcement.
For further information please visit POW
https://www.powermetalresources.com/ or contact:
Power Metal Resources plc
Paul Johnson (Chief Executive Officer) +44 (0) 7766 465 617
SP Angel Corporate Finance (Nomad and Joint Broker)
Ewan Leggat/Charlie Bouverat +44 (0) 20 3470 0470
SI Capital Limited (Joint Broker)
Nick Emerson +44 (0) 1483 413 500
First Equity Limited (Joint Broker)
David Cockbill/Jason Robertson +44 (0) 20 7330 1883
Notes to Editors:
Power Metal Resources plc (LON:POW) is an AIM listed metals
exploration and development company seeking a large scale discovery
of precious or base metals.
The Company has a portfolio including key interests in
Australia, Botswana, Cameroon, The DRC and Tanzania. The interests
represent large scale exploration projects targeting mainly cobalt,
copper, gold, nickel and platinum group metals. Project interests
range from early stage greenfield exploration to later stage drill
ready prospects.
The Board and its team of advisors have expertise in project
generation, exploration and development and have identified an
opportunity to utilise the Company's position to become a leader in
the London market for investors wishing to gain exposure to
proactive metals exploration.
POWER METAL RESOURCES PLC
UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHSED 31 MARCH 2020
6 months 6 months Year
ended ended ended
31-Mar-20 31-Mar-19 30-Sep-19
(unaudited) (unaudited) (audited)
Note GBP'000 GBP'000 GBP'000
------------- --- ------------- --- -----------
Revenue - - -
Cost of - - -
sales
------------- ------------- -----------
Gross profit - - -
Operating expenses (316) (335) (668)
Impairment - - (954)
Fair value gains through
profit or loss 60 - 36
Loss from operating activities (256) (335) (1,586)
Finance expense - - -
Loss before taxation (256) (335) (1,586)
Taxation - - -
------------- ------------- -----------
Loss for the period from continuing
operations (256) (335) (1,586)
------------- ------------- -----------
Items that will or may be reclassified
to profit or loss
Exchange translation (13) (30) 63
Total other comprehensive expense (13) (30) 63
------------- ------------- -----------
Total other comprehensive expense
for the period (269) (365) (1,523)
============= ============= ===========
Loss for the period attributable
to:
Owners of the parent (246) (324) (1,539)
Non-controlling interests (10) (11) (47)
(256) (335) (1,586)
Total comprehensive expense attributable
to:
Owners of the parent (260) (354) (1,466)
Non-controlling interests (9) (11) (57)
------------- ------------- -----------
(269) (365) (1,523)
============= ------------- -----------
Loss per share from continuing operations attributable to the ordinary
equity holder of the parent:
Basic and diluted (pence) 4 (0.05) (0.17) (0.55)
POWER METAL RESOURCES PLC
UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2020
31-Mar-20 31-Mar-19 30-Sep-19
(unaudited)
GBP'000 (unaudited) (audited)
Note GBP'000 GBP'000
------------- --- ------------- --- ----------------
Assets
Intangible assets 1,126 2,082 1,126
Financial assets 388 27 309
------------- -------------
Non-current assets 1,514 2,109 1,435
------------- ------------- ----------------
Trade and other receivables 282 96 32
Cash and cash equivalents 289 689 171
------------- ------------- ----------------
Current assets 571 785 203
------------- ------------- ----------------
Total assets 2,085 2,894 1,638
============= ============= ================
Equity
Share capital 5 7,023 6,833 6,843
Share premium 13,705 13,275 13,228
Capital redemption reserve 5 5 5
Share based payments
reserve 1,197 1,192 1,195
Foreign exchange reserve 25 (64) 39
Accumulated losses (19,776) (18,315) (19,530)
------------- ------------- ----------------
2,179 2,926 1,780
------------- ------------- ----------------
Non-controlling interests (217) (162) (208)
------------- ------------- ----------------
Total equity 1,962 2,764 1,572
------------- ------------- ----------------
Liabilities
Trade and other payables 123 130 66
Current liabilities 123 130 66
------------- ------------- ----------------
Total liabilities 123 130 66
------------- ------------- ----------------
Total equity and liabilities 2,085 2,894 1,638
============= ============= ================
POWER METAL RESOURCES PLC
UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHSED 31 MARCH 2020
Share
Capital based
Share Share redemption payment Exchange Accumulated Non-controlling Total
capital premium reserve reserve reserve losses Total interests Equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 1
October 2019
(audited) 6,843 13,228 5 1,195 39 (19,530) 1,780 (208) 1,572
-------- -------- ----------- -------- --------- ----------- -------- ---------------- --------
Loss for the
period - - - - - (246) (246) (10) (256)
Total other
comprehensive
expense - - - - (14) - (14) 1 (13)
Total
comprehensive
expense for
the
period - - - - (14) (246) (260) (9) (269)
-------- -------- ----------- -------- --------- ----------- -------- ---------------- --------
Issue of
ordinary
shares 180 582 - - - - 762 - 762
Cost of share
issues - (105) - - - - (105) - (105)
Share-based
payments - - - 2 - - 2 - 2
180 477 - 2 - - 659 - 659
-------- -------- ----------- -------- --------- ----------- -------- ---------------- --------
Balance at 31
March 2020
(unaudited) 7,023 13,705 5 1,197 25 (19,776) 2,179 (217) 1,962
======== ======== =========== ======== ========= =========== ======== ================ ========
POWER METAL RESOURCES PLC
UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHSED 31 MARCH 2019
Share
Capital based
Share Share redemption payment Exchange Accumulated Non-controlling Total
capital premium reserve reserve reserve losses Total interests Equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 1
October 2018
(audited) 6,606 12,453 5 1,086 (34) (17,991) 2,125 (151) 1,974
-------- -------- ----------- -------- --------- ----------- -------- ---------------- --------
Loss for the
period - - - - - (324) (324) (11) (335)
Total other
comprehensive
expense - - - - (30) - (30) - (30)
--------
Total
comprehensive
expense for
the
period - - - - (30) (324) (354) (11) (365)
-------- -------- ----------- -------- --------- ----------- -------- ---------------- --------
Issue of
ordinary
shares 227 906 - - - - 1,133 - 1,133
Cost of share
issues - (84) - - - - (84) - (84)
Share based
payments - - - 106 - - 106 - 106
227 822 - 106 - - 1,155 - 1,155
-------- -------- ----------- -------- --------- ----------- -------- ---------------- --------
Balance at 31
March 2019
(unaudited) 6,833 13,275 5 1,192 (64) (18,315) 2,926 (162) 2,764
======== ======== =========== ======== ========= =========== ======== ================ ========
POWER METAL RESOURCES PLC
UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEARED 30 SEPTEMBER 2019
Share
Capital based
Share Share redemption payment Exchange Accumulated Non-controlling Total
capital premium reserve reserve reserve losses Total interests Equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 1
October
2018
(audited) 6,606 12,453 5 1,086 (34) (17,991) 2,125 (151) 1,974
-------- -------- ----------- -------- --------- ----------- -------- ---------------- --------
Loss for the
year - - - - - (1,539) (1,539) (146) (6,640)
Total other
comprehensive
expense - - - - 73 - 73 (5) (39)
Total
comprehensive
expense for
the
period - - - - 73 (1,539) (1,466) (151) (7,210)
-------- -------- ----------- -------- --------- ----------- -------- ---------------- --------
Issue of
ordinary
shares 237 950 - - - - 1,187 - 1,187
Cost of share
issues - (93) - - - - (93) - (93)
Share-based
payments - (82) - 109 - - 27 - 27
237 775 - 109 - - 1,121 - 1,121
-------- -------- ----------- -------- --------- ----------- -------- ---------------- --------
Balance at 30
September
2019
(audited) 6,843 13,228 5 1,195 39 (19,530) 1,780 (208) 1,572
======== ======== =========== ======== ========= =========== ======== ================ ========
POWER METAL RESOURCES PLC
UNAUDITED CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHSED 31 MARCH 2020
6 months 6 months Year
ended ended ended
31-Mar-20 31-Mar-19 30-Sep-19
(audited)
GBP'000
(unaudited) (unaudited)
GBP'000 GBP'000
------------- ------------- ------------
Cash flows from operating
activities
Loss for the period (256) (335) (1,586)
Adjustments for:
* Fair value adjustment (60) - (36)
* Expenses financed by shares 147 132 186
* Share based payment expense 2 106 27
* Foreign exchange differences (14) - 65
* Impairment of intangible assets - - 954
(181) (97) (390)
Changes in working capital:
- Trade and other receivables (253) (57) 8
- Trade and other payables 61 (149) (209)
------------- ------------- ------------
Net cash used in operating
activities (373) (303) (591)
------------- -------------
Cash flows from investing
activities
Purchase of intangibles - (15) (15)
Investment in financial assets at
fair value through profit or loss (19) (27) (273)
Net cash used in investing
activities (19) (42) (288)
------------- ------------- ------------
Cash flows from financing
activities
Proceeds from issue of share
capital 615 1,001 1,000
Issue costs (105) (84) (93)
Net cash flows from financing
activities 510 917 907
------------- ------------- ------------
Net increase in cash and cash equivalents 118 572 28
Cash and cash equivalents at beginning
of period 171 147 147
Exchange loss on cash and cash equivalents - (30) (4)
Cash and cash equivalents at end
of period 289 689 171
============= ============= ============
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL REPORT
1. Reporting entity
Power Metal Resources plc is a company domiciled in the United
Kingdom. The unaudited consolidated interim financial report of the
Group as at and for the period ended 31 March 2020 comprises the
results of the Company and its subsidiaries. The Group primarily is
involved in the exploration and exploitation of mineral resources
in Australia, Botswana, Cameroon, the DRC and Tanzania.
2. Basis of preparation
(a) Statement of compliance
As permitted, IAS 34, 'Interim Financial Reporting' has not been
applied in this interim report.
The financial information presented in this interim report has
been prepared using accounting policies that are expected to be
applied in the preparation of the financial statements for the year
ending 30 September 2020.
These policies are in accordance with the recognition and
measurement principles of International Financial Reporting
Standards, International Accounting Standards and Interpretations
(collectively IFRS) issued by the International Accounting
Standards Board as endorsed for use in the European Union, and
these principles are disclosed in the Financial Statements for the
year ended 30 September 2019.
The interim results have been prepared on a going concern basis.
The financial information in this interim report does not
constitute statutory accounts within the meaning of Section 435 of
the Companies Act 2006. The 2020 interim financial report has not
been audited.
The Annual Report and Financial Statements for 2019 have been
filed with the Registrar of Companies. The Independent Auditors'
Report on the Annual Report and Financial Statement for 2019 was
unqualified and did not contain a statement under 498(2) or 498(3)
of the Companies Act 2006.
The interim results were approved by the Board of Directors on
30 June 2020.
(b) Judgements and estimates
Preparing the interim financial report requires Management to
make judgements, estimates and assumptions that affect the
application of accounting policies and the reported amounts of
assets and liabilities, income and expense. Actual results may
differ from these estimates.
In preparing this consolidated interim financial report,
significant judgements made by Management in applying the Group's
accounting policies and key sources of estimation uncertainty were
the same as those that applied to the consolidated financial
statements as at and for the year ended 30 September 2019.
(c) Going concern
The interim financial report has been prepared on a going
concern basis. Although the Group's assets are not generating
revenues, an operating loss has been reported for the reporting
period and an operating loss is expected to be incurred in the 12
months subsequent to the date of this report, the Directors
believe, having considered all available information, including the
Company's proven ability to raise further equity funds from its
supportive shareholder base, that the Group will have sufficient
funds to meet its expected committed and contractual expenditure
for the foreseeable future. Thus, the Directors continue to adopt
the going concern basis of accounting in preparing the interim
financial report for the period ended 31 March 2020.
3. Significant accounting policies
The accounting policies applied by the Group in this
consolidated interim financial report are the same as those applied
by the Group in its consolidated financial statements as at and for
the year ended 30 September 2019, except for the adoption of IFRS
16 Leases ("IFRS 16"), adopted on 1 October 2019.
The impact of IFRS 16 has had no material effect on the Group at
this stage of the Group's operations.
4. Loss per share
Basic and diluted loss per share
The calculation of basic and diluted loss per share is based on
the loss attributable to ordinary shareholders of the parent of
GBP246,000 (2019: GBP324,000), and a weighted average number of
ordinary shares in issue of 482,714,754 (2019: 191,327,463).
5. Issues of Equity
On 3 December 2019, the Company issued 4,852,125 new ordinary
shares of 0.1 pence each to the Vendors of the Alamo Project to
enable a 45-day due diligence period.
On 10 December 2019, the Company announced it had raised
GBP700,000 (before costs) through a placing and subscription at a
price of 0.40 pence per share through the issue of 175,000,000 new
ordinary shares of 0.1 pence each.
As at the period end and at the date of this interim report, the
Company had 552,690,226 Ordinary Shares in issue.
**Ends**
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END
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