TIDMIRR
RNS Number : 0049I
IronRidge Resources Limited
30 March 2020
30 March 2020
IronRidge Resources Limited
Interim Results
Transformational Pre and Post Period End
Strong Cash Position, Milestone Maiden MRE and H ighly
Successful Operational Period
IronRidge Resources Limited, ( AIM: IRR, "IronRidge" or the
"Company"), the African focussed minerals exploration company, is
pleased to announce its unaudited interim results for the half year
ended 31 December 201 9 .
A full copy of today's report (including tables and/or diagrams)
is available through the Investor Centre of the Company's website (
www.ironridgeresources.com.au ) or via the following link:
http://www.rns-pdf.londonstockexchange.com/rns/0049I_1-2020-3-30.pdf
FINANCIAL AND CORPORATE HIGHLIGHTS:
Ø Exploration and evaluation expenditure during the period was
A$5.6 million, resulting in an overall total ofA$30.3 million at
period end with continued exploration programs conducted across the
Company's projects in Ghana, Ivory Coast and Chad.
Ø Cash position of A$4.3 million at 31 December 2019.
Ø Binding Memorandum of Understanding ("MoU") with GeoDrill
Limited (TSX: GEO, "GeoDrill") for a drilling for equity program of
up to US$4 million, or 40,000m of drilling.
Ø Successful raising of approximately GBP2 million before
expenses through a subscription for, and placing of, in aggregate,
20,000,000 new ordinary shares in the Company at a price of 10
pence per share (the "Issue Price").
Ø Appointment of Mr Tetsunosuke Miyawaki ("Teddy Miyawaki") to
the Board as Non-Executive Director in July 2019.
Commenting, Vincent Mascolo, Chief Executive Officer of
IronRidge, said:
"Our exploration and drilling activities in Africa over the
period have been very successful. We are delighted with the
progress the Company has made to date across our portfolio, with
activities undertaken continuing to add value to each of the
projects.
"The Company achieved a key milestone with the JORC compliant
maiden Mineral Resource estimate at the Ewoyaa Lithium Project in
Ghana and now looks forward to further derisking and developing
this compelling project. In turn, the recent condtional acquisition
of Joy Transporters Ltd, and the full ownership of the Saltpond and
Cape Coast Portfolios, which offer high-priority targets adjacent
to the Ewoyaa Project, represent a further exciting
opportunity.
"We are highly encouraged by assay results received from our
flagship Zaranou Gold Project in Côte d'Ivoire, which continue to
reaffirm our belief of the potential for a significant gold
discovery. Furthermore, the recently completed conditional
acquisition of the Bodite and Bianouan gold licenses complement our
Zaranou Project and represent a highly prospective ground holding,
with significant drilling intersections and high-priority soil
anomalies.
"In light of developments regarding COVID-19 IronRidge has acted
to adjust its activities and is winding down drilling and field
programmes a few weeks earlier than originally planned before the
upcoming wet season, in order to ensure the health and safety of
all of its employees and contractors at this time. The Company's
personnel are transitioning to working from home and sites will
remain secured until safe working conditions can be
re-established.
"Whilst the Company is winding down activities on the ground,
other work continues with the analysis of soils and auger drilling
samples submitted to date, review of results from field programmes
and planning for further field programmes and drilling campaigns.
Furthermore, the Company's range of corporate activities, including
progressing the recently announced conditional acquisitions along
with other new opportunities, will continue unabated.
"We will ensure that shareholders remain appraised of the
Company's plans as they continue to evolve. We remain confident in
our strategy for developing and sustaining value for the Company
and its shareholders and look forward to updating the market with
our progress to this regard in due course."
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 any further information please contact:
IronRidge Resources Limited Tel: +61 7 3303 0610
Vincent Mascolo (Chief Executive Officer)
Karl Schlobohm (Company Secretary)
SP Angel Corporate Finance LLP Tel: +4 (0)20 3470 0470
Nominated Adviser
Jeff Keating
Charlie Bouverat
SI Capital Limited Tel: +44 (0) 1483 413
Company Broker 500
Nick Emerson Tel: +44 (0) 207 871 4038
Jon Levinson
Yellow Jersey PR Limited Tel: +44 (0)20 3004 9512
Henry Wilkinson Tel: +44 (0)7951 402 336
Emma Becirovic
Dominic Barretto
Competent Person Statement
Information in this report relating to the exploration results
is based on data reviewed by Mr Lennard Kolff (MEcon. Geol., BSc.
Hons ARSM), Chief Geologist of the Company. Mr Kolff is a Member of
the Australian Institute of Geoscientists who has in excess of 20
years' experience in mineral exploration and is a Qualified Person
under the AIM Rules. Mr Kolff consents to the inclusion of the
information in the form and context in which it appears.
Information in this report relating to metallurgical results is
based on data reviewed by Mr Noel O'Brien, Director of Trinol Pty
Ltd. Mr O'Brien is a Fellow of the Australasian Institute of Mining
and Metallurgy (AusIMM) and has sufficient experience which is
relevant to the style of mineralisation and type of deposit under
consideration and to the activity which he is undertaking to
qualify as a Competent Person as defined in the December 2012
edition of the "Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves" (JORC Code). Mr
O'Brien consents to the inclusion in the report of the matters
based upon the information in the form and context in which it
appears.
Information in this report relating to Mineral Resources was
compiled by Shaun Searle, a Member of the Australian Institute of
Geoscientists. Mr Searle has sufficient experience that is relevant
to the style of mineralisation and type of deposit under
consideration and to the activity being undertaken to qualify as a
Competent Person as defined in the 2012 Edition of the
'Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves'. Mr Searle is a director of Ashmore.
Ashmore and the Competent Person are independent of the Company and
other than being paid fees for services in compiling this report,
neither has any financial interest (direct or contingent) in the
Company.
CHAIRMAN STATEMENT:
"Results from our flagship Zaranou Gold Project in Côte d'Ivoire
have identified the potential for a future large-scale, open pit
gold mine and, unsurprisingly, this has attracted the interest of a
number of major mining companies.
In Ghana, the consolidation of our interests through
acquisitions and the recent establishment of the maiden Mineral
Resource estimate at the Ewoyaa Lithium Project has also attracted
the interests of several potential strategic partners, targeting
taking the project through to production. Discussions to this
effect are ongoing.
With regards to the unprecedented COVID-19 outbreak, the
wellbeing of our staff remains our ultimate priority.
Nevertheless the Company's range of corporate activities
continues.
We are delighted with the positive momentum of the continued
field and drilling programmes across the Company's African projects
and we will update the market with our progress in due course.
We remain highly encouraged by the current status of each of the
projects in our portfolio and we look forward to recommencing
operations on-site as soon as we are able."
OPERATIONAL HIGHLIGHTS:
Cote D'Ivoire - Gold and Lithium
Zaranou License:
Ø Field mapping, sampling, aeromagnetics interpretation and
drone imagery defined over 47km strike of highly prospective Shear
Zone with coincident alluvial gold workings along its entirety and
a 16km long high-priority hard-rock artisanal mining corridor
within the central portion of the license area (refer Figure
2).
Ø Field teams completed detailed face mapping and channel
sampling over 15 large scale and 130 small scale artisanal pits for
a total 145 primary hard-rock artisanal mining pits within the 16km
strike of hard-rock workings for a total of 324 reconnaissance
channel and rock chip samples (refer Figure 3).
Ø Multiple high-grade channel sampling results including 6m @
3.67g/t gold, 3m @ 4.13g/t gold and 4m @ 2.39g/t gold were returned
with gold mineralisation encountered both within the schists and
quartz veins. Rock-chip sampling returned multiple high-grade
results including 69.6g/t, 48.8g/t, 25.3g/t and 20.5g/t gold in
both schists and quartz vein material.
Bianouan and Bodite Portfolio:
Ø Results received for 115 AC drill holes for 3,903m of drilling
completed over the Bianouan and Bodite licenses.
Ø A total of 1,415m of AC drilling for 28 holes to an average
depth of 50m were completed at Bianouan. Drilling was designed to
test coincident soils, auger and trenching gold geochemical
anomalies at depth. At Bodite a total of 2,488m for 37 AC holes
were drilled to an average depth of 30m to test the highest
priority soil geochemical anomaly.
Ø A total of 2,123 samples, including quality assurance/quality
control ("QAQC") samples, were submitted to ALS laboratory for
assay and passed internal QAQC checks. All results are reported at
0.15g/t gold cut-off with maximum 2m of internal dilution.
Ø High-grade results including 12m @ 5.87g/t gold (including 2m
@ 33.8g/t gold), 8m @ 1.29g/t gold (including 2m @ 3.17g/t gold)
and 1m @ 3.13g/t gold at end of hole were returned at Bianouan
(refer Appendix Table 1).
Ø At Bodite results returned broad, low level gold anomalism
with best results including 10m @ 0.3g/t (including 2m @ 0.59g/t
gold) from 12m and 22m @ 0.21g/t gold from surface. Results also
returned narrow intervals including 2m @ 9.01g/t gold from 32m and
2m @ 2.74g/t gold from 14m (refer Appendix Table 2).
Vavoua Portfolio:
Ø At Vavoua, auger drilling commenced over high priority
coincident geochemical and geophysical targets. Southern Geoscience
Consultants of Perth, Western Australia completed detailed
litho-structural interpretation, which in-conjunction with field
mapping and sampling results, defined fourteen (14) targets of
which four (4) are priority one targets.
Ø A total of 3,000 first phase regional geochemical auger holes
on a nominal 800m x 50m grid were commenced over the Priority one
targets along strike from the 2.15Moz Abujar project (refer Figure
1 and Figure 5).
Kineta and Marahui Portfolio:
Ø At Kineta, the Company reported multiple narrow gold
intersections in trenching at a 0.12g/t gold cut-off with maximum
2m of internal dilution, including 2m @ 4.04g/t gold and 6m @
0.24g/t gold.
Ø At Marahui, a total of 5,129 soil samples, including QA/QC
samples, were collected on initial 400m x 25m spaced lines and
subsequently infilled to 200m and 100m line spacing across
prospective trends. Significant soil anomalies between 30ppb to
2,500ppb gold were defined over broad 2km long by 100m to 200m wide
north-northeast trending zones.
Ghana - Lithium
Ø Completed its third phase 12,669m Reverse Circulation ("RC")
drilling programme and 350m diamond core ("DD") drilling programme
at the Ewoyaa, Abonko and Kaampakrom projects, collectively the
Ewoyaa Project.
Ø Multiple high-grade drilling intersections were returned at a
0.4% Li (2) O cut-off and maximum 4m of internal dilution,
including highlights):
-- 76m @ 1.81% Li(2) O from 43m and 33.5m @ 1.3% Li(2) O from 124m
-- 69.74m @ 1.45% Li(2) O from 15.86m and 31.4m @ 1.78% Li(2) O from 92.6m
-- 40m @ 1.45% Li(2) O from 54m
-- 34m @ 1.43% Li(2) O from 76m
-- 31m @ 1.5% Li(2) O from 72m
-- 28m @ 1.49% Li(2) O from 37m
-- 19m @ 1.82% Li(2) O from 103m
Ø Discovered new pegmatites at the Kaampakrom, Ndasiman and
Krofo targets; all outside the current area of resource
drilling.
Ø Continued to engage Ghanaian consultancy NEMAS for baseline
studies over the project area and received a draft copy report of
the wet season environmental and social baseline studies completed.
Dry season baseline studies are now underway.
Ø Completed bulk sample test-work and delivered a high-grade
spodumene concentrate using gravity separation.
Chad - Gold
Ø Ground based Induced Polarization surveys including Gradient
Array and Dipole-Dipole completed by Terratec Geophysical Services
over the Dorothe prospect.
Ø Multiple coincident resistivity and chargeability anomalies
defined that coincide with the high-grade gold trenching anomalies;
interpreted to be associated with quartz veining or silica
alteration; typical host for gold mineralisation and possibly
disseminated sulphides respectively.
Ø Highest priority geophysical anomaly associated with the Main
Vein Zone; 1km long low resistivity mineralised vein zone with
coincident chargeability anomaly dipping steeply to the east.
Ø Additional flat lying coincident resistivity anomalies with
weaker chargeability anomalies associated with shallow west dipping
sheeted vein systems.
POST PERIOD- HIGHLIGHTS:
Cote D'Ivoire - Gold and Lithium
Ø Entered into an agreement with Major Star to acquire 100% of
the Bodite and Bianouan gold licenses, which gives IronRidge full
ownership of a highly prospective gold exploration portfolio in
Côte d'Ivoire.
Ø The acquisition of the Bodite and Bianouan Gold licenses in
return for the issue of 1,550,388 shares in IronRidge at 18 pence
per share; a significant premium to the share price.
Ø Reported multiple large-scale gold soil anomalies up to 4
kilometres long and additional high-grade and broad gold
intersections from drilling assay results received for the first
phase exploration programme completed at the Zaranou Gold
Project.
Ø At Zaranou, the Company completed a first pass exploration
drill programme for a total of 7,448m of Air-Core ("AC") in 151
holes and 1,593m of RC in 10 holes along seven drill traverses over
8km strike. Drilling intersected multiple broad and high-grade
intervals at a 0.2g/t gold cut-off and maximum 2m of internal
dilution in both weathered and fresh material for every traverse
completed over the 8km strike drill tested to date. Highlights
include:
-- 6m @ 15.11g/t gold from 26m, including 2m @ 36g/t and 2m @9.29g/t
-- 22m @ 3.39g/t gold from 8m, including 4m @ 13.55g/t and 4m @ 3.96g/t
-- 6m @ 6.72g/t gold from surface, including 2m @ 15g/t and 2m @ 3.72g/t
-- 6m @ 6.44g/t gold from 132m, including 2m @ 8.81g/t and 2m @ 9.18g/t
-- 4m @ 5.16g/t gold from 110m, including 2m @ 9.43g/t
-- 18m @ 0.31g/t gold from 32m, including 2m @ 0.58g/t
-- 14m @ 0.66g/t gold from 128m, including 2m @ 2.72g/t
Ø At Zaranou, the Company completed 800m line spaced soils
across the entire 47km strike length of prospective structure and
returned multiple high-priority soil anomalies for follow-up.
Ghana - Lithium
Ø 14.5Mt at 1.31% Li(2) O maiden Mineral Resource estimate
(reported in accordance with the 2012 JORC Code) in Indicated and
Inferred status announced at the Ewoyaa Project.
Ø Successful battery grade lithium conversion trials conducted
on coarse spodumene concentrate samples taken from the Ewoyaa
Lithium Project; lithium carbonate at a grade of 99.92% lithium
carbonate (Li(2) CO(3) ) was produced, which exceeds most published
specifications for battery grade quality.
Ø Entered into the agreement with Joy Transporters Ltd ("Joy
Transporters") for the acquisition of 100% of the share capital of
Joy Transporters giving IronRidge full ownership of a further and
highly prospective lithium exploration portfolio in Ghana (the
"Saltpond and Cape Coast Portfolio").
Ø The acquisition of Joy Transporters is in return for the issue
of 2,360,035 shares in IronRidge Resources at a price of 22.5 pence
per Ordinary Share; a significant premium to the share price.
FINANCIAL HIGHLIGHTS:
CONSOLIDATED statement of financial position
As at 31 December 2019
31 December 30 June 2019
2019
Notes A$ A$
Current assets
Cash and cash equivalents 4,255,050 6,714,221
Trade and other receivables 186,201 177,590
Other current assets 127,540 31,777
Total current assets 4,568,791 6,923,588
----------------------------------- ------ ------------- -------------
Non-current assets
Other financial assets 186,666 189,166
Property, plant and equipment 510,308 688,048
Exploration and evaluation assets 30,284,736 24,669,137
----------------------------------- ------ ------------- -------------
Total non-current assets 30,981,710 25,546,351
----------------------------------- ------ ------------- -------------
Total assets 35,550,501 32,469,939
----------------------------------- ------ ------------- -------------
Current liabilities
Trade and other payables 1,778,746 1,395,416
------------- -------------
Total current liabilities 1,778,746 1,395,416
----------------------------------- ------ ------------- -------------
Total liabilities 1,778,746 1,395,416
----------------------------------- ------ ------------- -------------
Net assets 33,771,755 31,074,523
----------------------------------- ------ ------------- -------------
Equity
Issued capital 6 61,427,806 57,052,711
Reserves 10,499,391 9,949,801
Accumulated losses (38,155,442) (35,927,989)
----------------------------------- ------ ------------- -------------
Total equity attributable to
owners of
IronRidge Resources Limited 33,771,755 31,074,523
----------------------------------- ------ ------------- -------------
The above consolidated statement of financial position should be
read in conjunction with the accompanying notes.
CONSOLIDATED statement of changes in equity
For the half year ended 31 December 2019
Issued Capital Accumulated Share Based Foreign Total Equity
Losses Payments Currency
Reserve Translation
Reserve
A$ A$ A$ A$ A$
Balance at 1 July
2018 46,793,172 (28,790,261) 6,521,609 176,483 24,701,003
Loss for the period - (5,182,875) - - (5,182,875)
Other comprehensive
income - - - 537,304 537,304
--------------- ------------- ------------ ------------- -------------
Total comprehensive
income for the
period - (5,182,875) - 537,304 (4,645,571)
Shares issued during
the period 9,756,518 - (244,188) - 9,512,330
Share issue costs (149,217) - - - (149,217)
Share based payments - - 3,484,240 - 3,484,240
Balance at 31 December
2018 56,400,473 (33,973,136) 9,761,661 713,787 32,902,785
------------------------ --------------- ------------- ------------ ------------- -------------
Loss for the period - (1,954,853) - - (1,954,853)
Other comprehensive
income - - - (603,833) (603,833)
--------------- ------------- ------------ ------------- -------------
Total comprehensive
income for the
period - (1,954,853) - (603,833) (2,558,686)
Shares issued during
the year 620,073 - - - 620,073
Share issue costs 32,165 - - - 32,165
Share based payments - - 78,186 - 78,186
Balance at 30 June
2019 57,052,711 (35,927,989) 9,839,847 109,954 31,074,523
------------------------ --------------- ------------- ------------ ------------- -------------
Loss for the period - (2,227,453) - - (2,227,453)
Other comprehensive
income - - - 612 612
--------------- ------------- ------------ ------------- -------------
Total comprehensive
income for the
period - (2,227,453) - 612 (2,226,841)
Share based payments - - 548,978 - 548,978
Shares issued during
the period 4,509,799 - - - 4,509,799
Share issue costs (134,704) - - - (134,704)
Balance at 31 December
2019 61,427,806 (38,155,442) 10,388,825 110,566 33,771,755
------------------------ --------------- ------------- ------------ ------------- -------------
The above consolidated statement of changes in equity should be
read in conjunction with the accompanying notes.
CONSOLIDATED statement of cash flows
For the half year ended 31 December 2019
31 December 31 December
2019 2018
Notes A$ A$
Cash flows from operating activities
Payments to suppliers and employees (1,669,492) (2,238,662)
Interest received 3 45 31,879
Interest paid (463) (1,352)
Net cash flows from operating activities (1,669,910) (2,208,135)
------------------------------------------- ------ ------------ ------------
Cash flows from investing activities
Payments for security deposits 2,500 (1,000)
Investment in Tekton Minerals Pte - -
Ltd
Purchase of property, plant and
equipment (3,570) (515,602)
Payments for exploration and evaluation
assets (4,331,992) (3,854,240)
------------------------------------------- ------ ------------ ------------
Net cash flows from investing activities (4,333,062) (4,370,842)
------------------------------------------- ------ ------------ ------------
Cash flows from financing activities
Proceeds from the issue of shares 3,551,852 9,512,330
Transactions costs on the issue
of shares (38,012) (149,217)
Net cash flows from financing activities 3,513,840 9,363,113
------------------------------------------- ------ ------------ ------------
Net increase in cash and cash equivalents (2,489,132) 2,784,136
Cash and cash equivalents at the
beginning of the period 6,714,222 8,946,604
Foreign exchange impact on cash 29,960 403,171
------------------------------------------- ------ ------------ ------------
Cash and cash equivalents at the
end of the period 4,255,050 12,133,911
------------------------------------------- ------ ------------ ------------
The above consolidated statement of cash flows should be read in
conjunction with the accompanying notes.
Notes to the financial statements
For the half year ended 31 December 2019
Note 1: Summary of Significant Accounting Policies
Corporate information
The consolidated financial report of IronRidge Resources Limited
(the "Company") for the half-year ended 31 December 2019 was
authorised for issue in accordance with a resolution of the
Directors on 30 March 2020. IronRidge Resources Limited (the
Parent) is a public company limited by shares incorporated and
domiciled in Australia. The Company's registered office is located
at Level 27, 111 Eagle Street, Brisbane, QLD 4000.
Basis of preparation
This half-year financial report for the period ended 31 December
2019 prepared in accordance with Australian Accounting Standard
AASB 134 Interim Financial Reporting and the Corporations Act 2001,
comprises the Company and its subsidiaries (together referred to as
the "Group").
The half-year financial report does not include all notes of the
type normally included within the annual financial report and
therefore cannot be expected to provide as full an understanding of
the financial performance, financial position and financing and
investing activities of the Group as the full financial report.
Accordingly, this half year financial report is to be read in
conjunction with the annual financial report for the year ended 30
June 2019 and any public announcements made by the Company during
the half-year reporting period in accordance with the continuous
disclosure requirements of the Corporations Act 2001.
The accounting policies and methods of computation are the same
as those adopted in the most recent annual financial report.
Going concern
The half year financial report has been prepared on a going
concern basis which contemplates the continuity of normal business
activities and the realisation of assets and discharge of
liabilities in the ordinary course of business. The Group has not
generated revenues from operations.
In addition, as detailed in Note 9, subsequent to reporting
date, the World Health Organisation (WHO) announced a global health
emergency because of a new strain of coronavirus (COVID-19) and the
risks to the international community as the virus spreads globally.
Because of the rapid increase in exposure globally, the WHO
classified the COVID-19 outbreak as a pandemic. These events are
having a significant negative impact on world stock markets,
currencies and general business activities which could negatively
impact the Company in a material adverse manner.
As such, the Group's ability to continue to adopt the going
concern assumption will depend upon a number of matters including
subsequent successful raisings in the future of necessary funding
and the successful exploration and subsequent exploitation of the
Group's tenements.
These conditions give rise to material uncertainty which may
cast significant doubt over the Group's ability to continue as a
going concern. The Directors believe that the going concern basis
of preparation is appropriate as the Directors believe there is
sufficient cash available for the Group to continue operating until
it can raise sufficient further capital to funds its ongoing
activities. The Group has a proven ability to raise the necessary
funding or settle debts via the issuance of shares, as evidenced by
the raising of $4,509,799 during the half year ended 31 December
2019.
Should the Group be unable to continue as a going concern, it
may be required to realise its assets and extinguish its
liabilities other than in the ordinary course of business, and at
amounts that differ from those stated in the financial report.
Notes to the financial statements
For the half year ended 31 December 2019
Note 1: Summary of Significant Accounting Policies
(Continued)
New or amended Accounting Standards and Interpretations
adopted
The Group has adopted all of the new or amended Accounting
Standards and Interpretations issued by the Australian Accounting
Standards Board ("AASB") that are mandatory for the current
reporting period.
Any new or amended Accounting Standards or Interpretations that
are not yet mandatory have not been early adopted.
The following Accounting Standards and Interpretations are most
relevant to the consolidated entity:
AASB 16 Leases
The Group has adopted AASB 16 from 1 July 2019. The standard
replaces AASB 117 'Leases' and for lessees eliminates the
classifications of operating leases and finance leases. Except for
short-term leases and leases of low-value assets, right-of-use
assets and corresponding lease liabilities are recognised in the
statement of financial position. Straight-line operating lease
expense recognition is replaced with a depreciation charge for the
right-of-use assets (included in operating costs) and an interest
expense on the recognised lease liabilities (included in finance
costs). In the earlier periods of the lease, the expenses
associated with the lease under AASB 16 will be higher when
compared to lease expenses under AASB 117. For classification
within the statement of cash flows, the interest portion is
disclosed in operating activities and the principal portion of the
lease payments are separately disclosed in financing activities.
The adoption of this standard did not have a material impact of the
Group's financial statements for the period ended 31 December
2019.
Notes to the financial statements
For the half year ended 31 December 2019
Note 2: Segment Information
The Group has identified its operating segment based on the
internal reports that are reviewed and used by the Board of
Directors (chief operating decision makers) in assessing
performance and determining the allocation of resources. The Group
is managed primarily on a geographic basis, that is, the location
of the respective areas of interest (tenements) in Queensland, and
Gabon. Operating segments are determined based on financial
information reported to the Board for the Group as a whole. The
Group does not yet have any products or services from which it
derives an income.
Accordingly, management currently identifies the Group as having
only one reportable segment, being exploration for base and
precious metals. The financial results from this segment are
equivalent to the financial statements of the Group. There have
been no changes in the operating segments during the half year.
Geographical information
Geographical - non-current
assets
31 December 30 June 2019
2019
$ $
Australia 1,338,631 1,687,046
Chad 13,548,196 13,099,272
Ghana 8,968,396 5,670,874
Ivory Coast 7,126,484 5,089,159
------------- --------------
30,981,710 25,546,351
------------- --------------
31 December 31 December
2019 2018
A$ A$
Note 3: Revenue
- Interest received 45 31,879
- Other income - 13,887
Total Revenue 45 45,766
------------ ------------
(a) Interest revenue from:
- Cash deposits held with financial
institutions 45 31,879
------------ ------------
Total Interest Revenue 45 31,897
------------ ------------
Note 4: Profit / (Loss)
Included in the profit / (loss)
are the following specific expenses:
Depreciation
- Office equipment 198 -
- Plant and equipment 3,209 3,232
- Motor Vehicle - 17,334
Superannuation expense 9,896 8,277
Note 5: Earnings Per Share (EPS)
(a) Earnings
Earnings used to calculate basic
and diluted EPS (2,227,453) (5,182,875)
Number of Shares Number of
Shares
(b) Weighted average number of
shares and options
Weighted average number of ordinary
shares outstanding during the period,
used in calculating basic earnings
per share 318,043,321 286,966,267
Weighted average number of dilutive
options outstanding during the
period - 600,000
----------------- --------------
Weighted average number of ordinary
shares and potential ordinary shares
outstanding during the period,
used in calculating diluted earnings
per share 318,043,321 287,566,267
----------------- --------------
Notes to the financial statements
For the half year ended 31 December 2019
31 December 30 June 2019
2019
A$ A$
Note 6: Issued Capital
(a) Issued and paid up capital
Ordinary shares fully paid 62,505,694 57,995,895
Share issue costs (1,077,888) (943,184)
------------ -------------
61,427,806 57,052,711
------------ -------------
Ordinary shares participate in dividends and the proceeds on
winding up the Company. At shareholder meetings each ordinary share
is entitled to one vote when a poll is called, otherwise each
shareholder has one vote on show of hands.
(b) Reconciliation of issued and Number of A$
paid-up capital Shares
------------ -----------
At 30 June 2019 311,107,170 57,995,895
3 October 2019 (1) 1,186,806 304,707
7 November 2019 (2) 20,000,000 3,742,515
14 November 2019 (3) 1,094,432 276,026
14 November 2019 (4) 638,333 157,480
16 December 2019 (5) 150,000 29,071
At 31 December 2019 334,176,741 62,505,694
------------ -----------
(1) On 3 October 2019, 1,186,806 GBP0.14 (equivalent to $0.26)
ordinary shares were issued to a contractor in partial
consideration for services rendered.
(2) On 7 November 2019, 20,000,000 GBP0.10 (equivalent to $0.19)
ordinary shares were issued pursuant to a private placement.
(3) On 14 November 2019, 1,094,432 GBP0.1329 (equivalent to
$0.25) ordinary shares and 638,333 GBP0.13 (equivalent to $0.25)
ordinary shares were issued to a contractor in partial
consideration for services rendered.
(4) On 16 December 2019, 150,000 GBP0.10 (equivalent to $0.19)
ordinary shares were issued by way of employee remuneration.
(c) Options
As at 31 December 2019, there were 58,200,000 unissued ordinary
shares of IronRidge Resources Limited under option and 600,000
options exercised under the company funded loan plan (treated as an
in-substance options) held as follows:
Options on Issue in IronRidge Resources Number Exercise Expiry
Ltd Price
Unlisted Employee options (1) 600,000 GBP0.10 20/1/2020
Unlisted Employee options 5,750,000 GBP0.40 3/9/2020
Unlisted Employee options 4,500,000 GBP0.60 5/9/2020
Unlisted Director options 4,000,000 GBP0.40 29/11/2020
Unlisted Employee options 4,000,000 GBP0.60 3/9/2021
Unlisted Employee options 5,000,000 GBP0.90 3/9/2021
Unlisted Director options 5,000,000 GBP0.60 29/11/2021
Unlisted Director options 6,000,000 GBP0.90 29/11/2021
Unlisted Director options 11,250,000 GBP0.25 12/12/2021
Unlisted Employee options 12,700,000 GBP0.25 12/12/2021
(1) Prior to expiry on 20 January 2019, modification was made to
extend the expiry date to 20 January 2020 through a loan funded
share plan.
During the half year there were no options exercised.
Notes to the financial statements
For the half year ended 31 December 2019
Note 6: Issued Capital (continued)
(d) Performance Rights
As at 31 December 2019, there were 12,150,000 of performance
rights on issue held as follows:
Options on Issue in IronRidge Resources Number Maturity Expiry
Ltd Price
Unlisted Employee performance rights 225,000 GBP0.30 3/9/2021
Unlisted Employee performance rights 225,000 GBP0.40 3/9/2021
Unlisted Employee performance rights 225,000 GBP0.50 3/9/2021
Unlisted Employee performance rights 225,000 GBP0.60 3/9/2021
Unlisted Employee performance rights 225,000 GBP0.70 3/9/2021
Unlisted Employee performance rights 225,000 GBP0.80 3/9/2021
Unlisted Employee performance rights 225,000 GBP0.90 3/9/2021
Unlisted Employee performance rights 225,000 GBP1.00 3/9/2021
Unlisted Employee performance rights 500,000 GBP1.25 3/9/2021
Unlisted Employee performance rights 750,000 GBP1.50 3/9/2021
Unlisted Employee performance rights 1,000,000 GBP2.00 3/9/2021
Unlisted Director performance rights 450,000 GBP0.30 3/9/2021
Unlisted Director performance rights 450,000 GBP0.40 3/9/2021
Unlisted Director performance rights 450,000 GBP0.50 3/9/2021
Unlisted Director performance rights 450,000 GBP0.60 3/9/2021
Unlisted Director performance rights 450,000 GBP0.70 3/9/2021
Unlisted Director performance rights 450,000 GBP0.80 3/9/2021
Unlisted Director performance rights 450,000 GBP0.90 3/9/2021
Unlisted Director performance rights 450,000 GBP1.00 3/9/2021
Unlisted Director performance rights 1,000,000 GBP1.25 3/9/2021
Unlisted Director performance rights 1,500,000 GBP1.50 3/9/2021
Unlisted Director performance rights 2,000,000 GBP2.00 3/9/2021
During the half year no performance rights matured and converted
to ordinary shares.
Note 7: Share based payments
The expense recognised for share based payments received during
the half year is shown in the table below:
31 December 31 December
2019 2018
$ $
Expense arising from equity settled
share-based payment transactions:
Share options 548,978 2,451,221
Performance rights - 1,033,019
548,978 3,484,240
------------ ------------
Employee share option plan (ESOP)
Share options are granted to employees. The employee share
option plan is designed to align participants' interests with those
of shareholders by increasing the value of the Company's
shares.
When a participant ceases employment after the vesting of their
share options, the share options are forfeited after 90 days unless
cessation of employment is due to termination for cause, whereupon
they are forfeited immediately or death. The Company prohibits KMP
from entering into arrangements to protect the value of unvested
ESOP awards.
Each option can be exercised from vesting date to expiry date
for one share with the exercise price payable in cash.
Notes to the financial statements
For the half year ended 31 December 2019
Note 7: Share based payments
Options granted during the period
On 29 November 2019, 11,250,000 IronRidge Resources Ltd share
options were granted to Directors under the Employee Share Option
Plan. The options are to take up one ordinary share in IronRidge
Resources at GBP0.25 per share. The options vested immediately and
are due to expire on 29 November 2021.
On 16 December 2019, 12,700,000 IronRidge Resources Ltd share
options were granted to employees under the Employee Share Option
Plan. The options are to take up one ordinary share in IronRidge
Resources at GBP0.25 per share. The options vested immediately and
are due to expire on 12 December 2021.
Performance rights issued during the period
There were no performance rights issued during the half year
ended 31 December 2019.
Note 8: Contingent Assets and Contingent Liabilities
The Directors are not aware of any contingent assets or
contingent liabilities at the date of this report.
Note 9: Subsequent Events
On 20 January 2020, 854,643 ordinary shares were issued to a
contractor in partial consideration for services rendered.
On 28 January 2020, the Company announced a maiden Mineral
Resource estimate ("MRE") of 14.5Mt at 1.31% Li 2O for the Ewoyaa,
Abonko and Kaampakrom deposits (combined the "Ewoyaa Project")
within the Cape Coast Lithium Portfolio in Ghana, West Africa. The
Mineral Resource is reported in accordance with the JORC Code
(2012).
On 2 March 2020, the Company announced that it had entered into
an agreement with Major Star to acquire 100% of the Bodite and
Bianouan gold licenses for the issue of 1,550,388 ordinary shares
at an issue price of GBP0.18, a significant premium to the current
share price, which gives IronRidge full ownership of a highly
prospective gold exploration portfolio in Côte d'Ivoire.
On 12 March 2020, the Company announced that it had entered into
an agreement with Joy Transporters Ltd for the acquisition of 100%
of the share capital of Joy Transporters giving IronRidge full
ownership of a further and highly prospective lithium exploration
portfolio in Ghana for the issue of 2,360,035 ordinary shares at an
issue price of GBP0.225, a significant premium to the current share
price.
The full impact of the COVID-19 outbreak continues to evolve at
the date of this report. In light of COVID-19, the Company has
acted to adjust its activities and is winding down drilling
programmes a few weeks earlier than originally planned before the
upcoming wet season, in order to ensure the health and safety of
all of its employees and contractors at this time. The Company's
personnel are transitioning to working from home and sites will
remain secured until safe working conditions can be re-established.
Other work continues with the review and analysis of results from
field programmes, processing of drill results yet to be received,
preparation and planning for further field programmes and drilling
campaigns. Furthermore, the Company's range of corporate
activities, including progressing the recently announced
acquisitions, will continue unabated.
Given the continued evolution of the COVID-19 outbreak and the
various governmental restrictions being imposed to curb its spread,
the Company is presently not able to estimate a timeframe for the
normal resumption of its operations and financial condition. The
Board will continue to monitor the situation and tailor the
Company's operating model to ensure its continued viability until
the restrictions have been lifted.
There have been no other events since the end of the half year
that impact the financial report as at 31 December 2019.
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
IR GUGDXBDXDGGG
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