TIDMCOBR
RNS Number : 6243A
Cobra Resources PLC
30 September 2020
30(th) September 2020
Dissemination of a Regulatory Announcement that contains inside
information according to REGULATION (EU) No 596/2014 (MAR).
Cobra Resources plc
("Cobra" or "the Company")
Interim Results
Cobra Resources plc (LSE:COBR), an exploration and mining
company, announces its results for the six months ended 30 June
2020.
Operational Highlights
The first half of 2020 has been a transformational period for
the Company, having relisted on the LSE following the completion of
the Reverse Take Over (RTO) on 16(th) January 2020. Since that
time, the Company has successfully progressed exploration
activities at its flagship Wudinna Gold Project. The highlights of
the Company's exploration activities during the period
included:
-- Completion of the 3-phase geochemical sampling and re-assay
programme to establish key pathfinder relationships and define high
priority drilling targets;
-- Structural interpretation and integration of geophysical and
geochemical data to establish primary controls on
mineralisation;
-- Application for an Ongoing PEPR to facilitate exploration
programmes across all 22 orogenic gold prospects and 4 IOCG
prospects. The exploration permit was subsequently approved post
period end; and
-- Definition of priority drill targets at Baggy Green, Baggy
Green North, Clarke and Laker prospects.
As a result of the above activities, the Company is on track to
complete its Stage-1 JV earn-in during the second half of 2020.
This will see the Company secure a 50% interest in the Wudinna Gold
Project.
Corporate and Financial Highlights
-- The Company completed a RTO and was readmitted to the Main
Market of the LSE on the 16(th) January 2020, following the
successful acquisition of the now wholly owned subsidiary Lady
Alice Mines in 2019.
-- Since relisting, a significant improvement in the gold market
enabled the Company to raise funds to support its planned
exploration programmes. The Company was able to place its available
headroom raising gross proceeds of approximately GBP677,145 in May.
These funds enabled the Company to commence detailed planning for
drilling activities scheduled for the second half of 2020.
-- The transformation to an operational company saw changes to
the Company's Board with the resignation of Mr Rolf Gerritsen, and
the appointment of Mr Daniel Mailing and Mr David Clarke as
non-executive directors. Mr Greg Hancock was also appointed as
non-executive Chairman.
Craig Moulton, Executive Director, commented:
The first half of 2020 has been transformational for the Company
which is now well funded for a major drilling campaign during the
second half of the year. The new Board members bring with them
complimentary skills and experience and are focused on growing the
Wudinna Gold project to its full potential.
Operational Review
The first six months of 2020 have been transformational for the
business, having evolved from a cash shell to a sustainable
operating business. Having completed the acquisiton of Lady Alice
Mines Pty Ltd the Company was immediately focused on early
exploration activities at the Wudinna Gold project, completing a
three-stage geochemical programme:
-- Stage 1 - Calibration samples to establish mineralization / pathfinder relationships
-- Stage 2 - Identify possible extensions to existing mineralisation
-- Stage 3 - Drill targeting / prioritisation
The results of this geochemical analyses combined with the
interpretation of geological and geophysical data delivered
excellent results including:
o Establishing Au-Bi-Te-W-Ag-Cu pathfinder elements as the key
signature for mineralization
o Identified high mobility of gold and copper in weathering
profile
o Demonstrating large scale prospectivity and continuity of
geochemical anomalies, particularly in the Baggy Green, where
highly anomalous pathfinders extend over 1.2km to the north
o Establishing the importance of regional structures as a
control on mineralisation
o Prioritisation of initial drilling targets at Baggy Green,
Baggy Green North, Clarke and Laker
During the period, the Company submitted a detailed exploration
permit known as an Ongoing PEPR. This permit does not need to be
renewed like normal permits which are only valid for 12 months, and
commits the Company to operating at industry best levels with
regards to its impact on the environment. The Ongoing PEPR cover
all 22 orogenic gold prospects and 4 IOCG targets at Wudinna and
will significantly reduce the time required to commence exploration
programmes going forward. This permit was approved by the South
Australian Government subsequent to the reporting period.
Based on the above activity the Company forecasts that it will
complete Stage 1 of the Wudinna Gold Project - Farm-In and Joint
Venture with Andromeda Metals Limited during the second half of
2020. The Stage 1 earn-in will see the Company secure a 50%
interest in the Wudinna Gold Project.
Corporate Development
Due to the uncertainty around the future impacts of the COVID-19
virus, global gold markets saw significant improvement.
Several potential project opportunities were reviewed by the
Board during the reporting period, however, none were found to be
compelling in terms of both technical merit and potential value-add
to shareholders.
There were also several changes to the Company's board during
the first half of 2020. Firstly, Mr Rolf Gerritsen resigned and Mr
Daniel Maling and Mr David Clarke were appointed.
Mr Maling, based in London, is a corporate finance and
commercial advisor, with extensive experience in listed companies
in the natural resources sector. Mr Clarke is based in Adelaide,
South Australia and is an eminent Australian geologist, who has
been instrumental in the discovery and development of several large
mining operations. The addition of Mr Clarke and Mr Maling to the
Company's Board has provided additional depth and experience and
will be a significant advantage as the Company enters a busy
operational period during the second half of 2020 and business
development in the years ahead.
The Company is now well established, well-funded and on the
verge of commencing its first major drilling campaign.
Financial Review
Cobra reported an unaudited operating loss for the six months
ended 30 June 2020 of GBP296,424 which equates to a loss per share
for the period of GBP0.0019. This compares to a loss for the six
month period to 30 June 2019 of GBP361,284 which equates to a loss
per share for the period of GBP0.0054.
In May the Board made a strategic decision to place the
Company's available head room, raising gross proceeds of
approximately GBP677,145 at a price of 2.25p. This had the
advantage of minimising dilution for existing shareholders and
enabled the Company to commence detailed planning for a drilling
programme during the second half of 2020.
Post period end, in August 2020, the Company raised GBP1.5m in a
placing of zero coupon convertible loan notes convertible at 2.3p,
with warrants attached. This additional funding will enable the
Company to develop its targeted exploration campaigns across its
key projects over the next 12-18 months.
Outlook
As previously announced, Cobra's near-term focus will be on
executing its planned exploration programmes, including two Reverse
Circulation (RC) drilling programmes and a further Auger soil
sampling programme during the second half of 2020. This will
include 150 soil sample holes at Larwood, and a total 6750m RC
drilling at the Greater Baggy Green area, Laker, Larwood, and
Barns. Exploration activity at Barns and Larwood is on farmland, so
timing is subject to the completion of harvesting activities. The
Company does not currently expect any delays due to the current
COVID-19 travel restrictions.
Responsibility Statement
We confirm that to the best of our knowledge:
-- The interim financial statements have been prepared in
accordance with International Accounting Standard 34, Interim
Financial Reporting, as adopted by the EU;
-- Give a true and fair view of the assets, liabilities,
financial position and loss of the Company;
-- The interim report includes a fair review of the information
required by DTR 4.2.7R of the Disclosure and Transparency Rules,
being an indication of important events that have occurred during
the first six months of the financial year and their impact on the
interim financial information, and a description of the principal
risks and uncertainties for the remaining six months of the year;
and
-- The interim financial information includes a fair review of
the information required by DTR 4.2.8R of the Disclosure and
Transparency Rules, being the information required on related party
transactions.
Enquiries:
Cobra Resources plc
Craig Moulton
Tel: +61 8 9316 4938
Email: info@cobraplc.com
www.cobraplc.com
SI Capital Limited (Joint Broker)
Nick Emerson
Tel: +44 (0)14 8341 3500
Peterhouse Capital Limited (Joint Broker)
Lucy Williams
Tel:+44 (0) 20 7469 0932
Notes for Editors:
Cobra Resources plc (LSE:COBR) is an exploration and mining
company whose securities are listed on the main market of London
Stock Exchange plc.
The Company's primary strategy is to focus on the development of
advanced resource exploration projects with potential, through the
application of disciplined and structured exploration and analysis,
to progress towards a sustainable mining operation.
On 7 March 2019, the Company announced that it had signed an
acquisition agreement to acquire 100% of the units in the Lady
Alice Trust and the entire issued share capital of the Lady Alice
Mines Pty Ltd ("LAM"), an Australian exploration company, as a
trustee of the Lady Alice Trust (the "Proposed Acquisition").
The Company will update the market as and when appropriate.
Consolidated Income Statement
6 months 6 months Year ended
to to 31 December
30 June 30 June 2019
2020 2019
Unaudited Unaudited Audited
GBP GBP GBP
Revenue - - -
Administrative expenses (296,424) (299,284) (544,500)
IPO expenses - (62,000) (124,400)
Operating loss (296,424) (361,284) (668,900)
Finance costs - - -
Loss on ordinary activities
before taxation (296,424) (361,284) (688,900)
Tax on loss on ordinary - - -
activities
-------------- -------------- --------------
Loss for the financial
period attributable
to equity holders (296,424) (361,284) (688,900)
-------------- -------------- --------------
Earnings per share
- see note 4 GBP(0.0019) GBP(0.0054) GBP(0.0099)
Basic and diluted
Consolidated Statement of Comprehensive Income
6 months 6 months Year ended
to to 31 December
30 June 30 June 2019
2020 2019
Unaudited Unaudited Audited
GBP GBP GBP
Loss after tax (296,424) (361,284) (668,900)
Items that may subsequently
be reclassified to
profit or loss:
* Exchange differences on translation of foreign
operations 25,498 - (1,461)
Total comprehensive
loss attributable
to equity holders
of the parent company (270,926) (361,284) (670,361)
---------- ---------- -------------
Consolidated Statement of Financial Position
6 months 6 months Year ended
to 30 June to 30 31 December
2020 June 2019 2019
Unaudited Unaudited Audited
GBP GBP GBP
Non-current assets
Intangible assets 701,676 68,505 612,242
Property, plant and
equipment 2,693 - 3,428
-------------- ------------ --------------
Total non-current
assets 704,369 68,505 615,670
-------------- ------------ --------------
Current assets
Trade and other receivables 46,143 2,503 37,433
Cash and cash equivalents 627,694 3,081 7,675
-------------- ------------ --------------
Total current assets 673,837 5,584 45,108
-------------- ------------ --------------
Non-current liabilities
Deferred consideration (350,066) - (350,066)
-------------- ------------ --------------
Current liabilities
Trade and other payables (74,785) (106,340) (436,553)
Deferred consideration (28,867) - (215,486)
-------------- ------------ --------------
Total current liabilities (453,718) (106,340) (652,039)
-------------- ------------ --------------
Net assets/(liabilities) 924,488 (32,251) (341,327)
============== ============ ==============
Capital and reserves
Share capital 1,872,692 672,335 672,335
Share premium 497,376 160,992 160,992
Share based payment
reserve 69,038 69,038 69,038
Retained losses (1,538,655) (934,616) (1,242,231)
Foreign currency
reserve 24,037 - (1,461)
-------------- ------------ --------------
Total equity 924,488 (32,251) (341,327)
-------------- ------------ ==============
Consolidated Statement of Cash Flows
6 months 6 months Year ended
to to 30 June 31 December
30 June 2019 2019
2020
Unaudited Unaudited Audited
GBP GBP GBP
Cash flow from operating
activities
Operating loss (296,424) (361,284) (668,900)
Depreciation 735 - 979
Foreign exchange 25,498 - 5,950
(Increase)/decrease
in receivables (8,710) 25,644 (9,286)
(Decrease)/increase
in payables (548,386) 79,092 313,519
Net cash used in operation
activities (827,288) (256,548) (357,738)
---------- ------------ -------------
Cash flows from investing
activities
Payments for exploration
and evaluation activities (89,433) (68,506) (5,660)
Payment for acquisition
of subsidiary, net of
cash - - 11,645
Payments for tangible
assets - - (4,407)
---------- ------------ -------------
Net cash (used)/generated
in investing activities (89,433) (68,506) 1,578
---------- ------------ -------------
Cash flows from financing
activities
Proceeds from issue
of shares 1,508,514 - 35,700
Transaction costs of
issue of shares (59,960) - -
Shares issued in lieu 88,188 - -
of fees
---------- ------------ -------------
Net cash generated from
financing activities 1,536,742 - 35,700
---------- ------------ -------------
Net increase/(decrease)
in cash and cash equivalents
Cash and cash equivalents 620,021 (325,054) (320,460)
at the beginning of
period 7,675 328,135 328,135
---------- ------------ -------------
Cash and cash equivalents
at end of period 627,696 3,081 7,675
---------- ------------ -------------
Consolidated Statement of Changes in Equity
Share Share Share Retained Foreign Total
capital premium based earnings currency
payment reserve
reserve
GBP GBP GBP GBP GBP GBP
At 31 December
2018 672,335 160,992 69,038 (573,332) - 329,033
---------- --------- --------- ------------ ---------- -----------
Loss for the
period - - - (361,284) - (361,284)
---------- --------- --------- ------------ ---------- -----------
Total comprehensive
income - - - (361,284) - (361,284)
---------- --------- --------- ------------ ---------- -----------
At 30 June 2019 672,335 160,992 69,038 (934,616) - (32,251)
---------- --------- --------- ------------ ---------- -----------
Loss for the
period - - - (307,616) - (307,616)
Translation
differences - - - - (1,461) (1,461)
---------- --------- --------- ------------ ---------- -----------
Total comprehensive
income - - - (307,616) (1,461) (309,077)
At 31 December
2019 672,335 160,992 69,038 (1,242,232) (1,461) (341,327)
---------- --------- --------- ------------ ---------- -----------
Loss for the
period - - - (296,424) - (296,424)
Translation
differences - - - - 25,498 25,498
---------- --------- --------- ------------ ---------- -----------
Total comprehensive
income - - - (296,424) 25,498 (270,926)
Share capital
issued 1,112,170 396,344 - - - 1,508,514
Cost of share
issue - (59,960) - - - (59,960)
Shares issued
in lieu of fees 88,187 - - - - 88,187
---------- --------- --------- ------------ ---------- -----------
Total contributions
by and distributions
to owners of
the Company 1,200,357 336,384 - - - 1,536,741
---------- --------- --------- ------------ ---------- -----------
At 30 June 2020 1,872,692 497,376 69,038 (1,538,656) 24,037 924,488
---------- --------- --------- ------------ ---------- -----------
Half-yearly report notes
1. Half-yearly report
This half-yearly report was approved by the Directors on 30 September 2020.
The information relating to the six month periods to 30 June
2020 and 30 June 2019 are unaudited.
The information relating to the year to 31 December 2019 is
extracted from the audited financial statements of the Company
which have been filed at Companies House and on which the auditors
issued an unqualified audit report. The condensed interim financial
statements have not been reviewed by the Company's auditor.
2. Basis of accounting
The report has been prepared using accounting policies and
practices that are consistent with those adopted in the statutory
financial statements for the period ended 31 December 2019,
although the information does not constitute statutory financial
statements within the meaning of the Companies Act 2006. The
half-yearly report has been prepared under the historical cost
convention.
Going concern
The Company's day to day financing is from its available cash
resources.
Post period end in August 2020 the Company raised GBP1.5m in a
placing of zero coupon convertible loan notes with warrants
attached. This additional funding will enable the Company to
develop its targeted exploration campaigns across its key projects
over the next 12-18 months and the Directors are confident that
adequate funding can be raised as required to meet the Company's
current and future liabilities.
For the reasons outlined above, the Directors are satisfied that
the Company will be able to meet its current and future
liabilities, and continue trading, for the foreseeable future and,
in any event, for a period of not less than twelve months from the
date of approving this report. The preparation of these financial
statements on a going concern basis is therefore considered to
remain appropriate.
These half-yearly financial statements are prepared in
accordance with IAS 34 Interim Financial Reporting as adopted by
the European Union and the Disclosure and Transparency Rules of the
UK Financial Conduct Authority.
This half-year report does not include all the notes of the type
normally included in an annual financial report. Accordingly, this
report should be read in conjunction with the annual report for the
year ended 31 December 2019, which have been prepared in accordance
with International Financial Reporting Standards (IFRS) as adopted
by the European Union.
The Company will report again for the full year to 31 December
2020.
Critical accounting estimates
The preparation of condensed interim financial statements
requires management to make estimates and assumptions that affect
the reported amounts of assets and liabilities at the end of the
reporting period. Significant items subject to such estimates are
set out in the Company's 2019 Annual Report and Financial
Statements. The nature and amounts of such estimates have not
changed significantly during the interim period.
Intangible assets
Exploration and development costs
All costs associated with mineral exploration and investments
are capitalised on a project-by-project basis, pending
determination of the feasibility of the project. Costs incurred
include appropriate technical and administrative expenses but not
general overheads. If an exploration project is successful, the
related expenditures will be transferred to mining assets and
amortised over the estimated life of economically recoverable
reserves on a unit of production basis.
Half-yearly report notes, continued
2. Basis of accounting, continued
Intangible assets
Exploration and development costs
Where a licence is relinquished or a project abandoned, the
related costs are written off in the period in which the event
occurs. Where the Group maintains an interest in a project, but the
value of the project is considered to be impaired, a provision
against the relevant capitalised costs will be raised.
The recoverability of all exploration and development costs is
dependent upon the discovery of economically recoverable reserves,
the ability of the Group to obtain necessary financing to complete
the development of reserves and future profitable production or
proceeds from the disposition thereof.
3. Intangible assets
6 months Period Year ended
to to 31 December
30 June 30 June 2019
2020 2019
Unaudited Unaudited Audited
GBP GBP GBP
At 31 December 2019 612,242 - -
----------- ---------- -------------
Acquired at fair
value - - 606,582
Additions 89,434 68,505 5,660
At 30 June 2020 701,676 68,505 612,242
----------- ---------- -------------
The Directors undertook an assessment of the following areas and
circumstances that could indicate the existence of impairment:
-- The Group's right to explore in an area has expired, or will
expire in the near future without renewal;
-- No further exploration or evaluation is planned or budgeted
for;
-- A decision has been taken by the Board to discontinue
exploration and evaluation in an area due to the absence of a
commercial level of reserves; or
-- Sufficient data exists to indicate that the book value will
not be fully recovered from future development and production.
Following their assessment, the Directors concluded that no
impairment charge was necessary for the period ended 30 June
2020.
Half-yearly report notes, continued
4. Earnings per share
6 months Period Year ended
to to 31 December
30 June 30 June 2019
2020 2019
Unaudited Unaudited Audited
GBP GBP GBP
These have been calculated
on a loss of: (296,424) (361,284) (668,900)
-------------- -------------- --------------
The weighted average
number of shares
used was: 156,577,093 67,233,532 67,233,532
-------------- -------------- --------------
Basic and diluted GBP(0.0019) GBP(0.0054) GBP(0.0099)
loss per share:
-------------- -------------- --------------
5. Events after the reporting period
There were no reportable events after the reporting period other
than those highlighted in the 'Financial Review'.
The Condensed interim financial statements were approved by the
Board of Directors on 30 September 2020.
By order of the Board
Craig Moulton
Executive Director
Copies of this half-yearly report are available free of charge
by application in writing to the Company Secretary at the Company's
registered office: 9(th) Floor, 107 Cheapside, London, EC2V 6DN, or
by email to info@london-registrars.co.uk . The report will also be
made available on the Company's website: www.cobraplc.com .
End
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END
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