TIDMATM

RNS Number : 7181X

AfriTin Mining Ltd

31 August 2022

31 August 2022

AfriTin Mining Limited

("AfriTin" or the "Company")

Audited Financial Results for the 12 months ended 28 February 2022

AfriTin Mining Limited (AIM: ATM), an African technology-metals mining company with a portfolio of mining and exploration assets in Namibia, is pleased to announce its final audited results for the 2022 financial year (FY2022) ended 28 February 2022.

Financial Highlights:

-- Revenue of GBP13.6m (FY2021: GBP5.0m) up 178% driven by increased production and higher FY2022 tin prices;

-- Maiden group profit before tax of GBP0.4m (FY2021: loss of GBP5.8m), a positive swing of GBP6.2m;

   --    Increase in EBITDA of 155% to GBP2.6m (FY2021: loss of GBP4.7m); 
   --    Loss after tax of GBP0.474m (FY2021: loss of GBP5.796m); 
   --    Average tin price achieved for the year of US$38,680/tonne (FY2021: US$22,150/tonne); and 
   --    Cash and cash equivalents at year end of GBP7.4m. 

Key Operational Highlights:

-- Annual tin concentrate production increased 70% to 804 tonnes after ramp-up and expansion initiatives (FY2021: 473 tonnes);

   --    Tin production 12% above nameplate capacity reflecting strong operational performance; 

-- Definitive Feasibility Study ("DFS") published for up to 67% expansion on Phase 1 and commenced construction on this project;

   --    Advanced exploration and development into lithium and tantalum as potential by-products; and 
   --    Preliminary Economic Assessment ("PEA") published for a possible Phase 2 expansion. 

Post Year End Highlights:

-- Construction for the Phase 1 Expansion completed, with commissioning scheduled to be complete by the end of September 2022;

   --    Production to increase by up to 67% (up to 1,200 tonnes of tin concentrate per annum); and 

-- Conditional, credit approved term sheet signed with the Development Bank of Namibia to support the Company's growth strategy.

Anthony Viljoen, CEO of AfriTin, commented :

"I am pleased to report another year of strong operational delivery that has seen AfriTin significantly increase production and generate its first group-wide profit. Our production at Uis has exceeded nameplate capacity by 12% which is a testament to the operational excellence we have instilled in Namibia and puts the Company in a good position to deliver our forthcoming further expansion initiatives.

As we look forward, following commissioning of the Phase 1 expansion in September 2022, we should see tin production rates increase by up to 67% (up to 1,200 tonnes of concentrate per annum). Despite volatile global commodity markets this year, management and the Board of Directors remain confident that the market fundamentals for tin production will remain positive, giving AfriTin's existing operations a relative competitive advantage in this supply-constrained environment. The addition of various growth initiatives, specifically the addition of lithium and tantalum production revenue streams, will further drive future value for the Company. This should transition AfriTin to a multi-commodity producing technology metals group, which is tremendously exciting.

I would like to thank my supportive Board of Directors and all our employees for their efforts in building these foundations to deliver further success in the coming years"

Annual General Meeting

A Notice of Annual General Meeting ("AGM") will be distributed to shareholders today and is now available on the Company's website. The AGM is to be held at 11:00 am on 29 September 2022 at PO Box 282, Oak House, Hirzel Street, St Peter Port, Guernsey GY1 3RH.

Annual Report

The Annual Report for the 2022 financial year ended 28 February 2022 is now available on the Company's website at the following link: https://afritinmining.com/investor-centre/company-reports/ . Physical copies of the Annual Report will also be posted to shareholders today, to those who have elected to receive them.

 
 AfriTin Mining Limited                     +27 (11) 268 6555 
 Anthony Viljoen, CEO 
 Nominated Adviser                          +44 (0) 207 220 1666 
 WH Ireland Limited 
  Katy Mitchell 
  Andrew de Andrade 
 Corporate Advisor and Joint Broker 
 H&P Advisory Limited 
  Andrew Chubb 
  Jay Ashfield 
  Nilesh Patel                              +44 (0) 20 7907 8500 
 Stifel Nicolaus Europe Limited 
  Ashton Clanfield 
  Callum Stewart                            +44 (0) 20 7710 7600 
 Tavistock Financial PR (United Kingdom)    +44 (0) 207 920 3150 
 Emily Moss 
  Catherine Drummond 
  Adam Baynes 
 

CHAIRMAN'S STATEMENT

The year in review marks a significant milestone for AfriTin and the team. I congratulate all of our employees on this achievement. The fundamentals in this financial year have been strong for tin, coupled with the ever-increasing demand for the transition to a greener world. Our team has successfully returned Uis to its rightful state as a producing mine. I congratulate all of our employees on this achievement.

Since attaining our Namibian licences, we remain confident in the fundamentals of producing a saleable tin concentrate and further unlocking future revenue streams. Against the backdrop of surpassing nameplate production in November 2020 and building on this throughout 2021, AfriTin is well on its way to becoming a globally significant producer of high demand strategic commodities. We look forward to building on our existing platform through our various expansion projects and complimentary metal streams.

As per most companies globally, AfriTin was not immune to the effects and disruptions of the COVID-19 pandemic. While our teams were presented with multiple logistical challenges, acts performed to overcome these are a testament to the resilience and flexibility of our employees and management. The health and safety of our staff, partners and stakeholders has been, and always will be, of paramount importance to the Board.

AfriTin's commitment to strong Environmental, Social and Governance (ESG) principles has been entrenched in our philosophy since inception and is strongly supported by the Board and the entire organisation. We recognise the need and duty to entrench good governance and ESG principles as early as possible in our business development plan and to adopt necessary monitoring and change to sustainably achieve these.

Looking to the future of AfriTin, we remain confident in our pursuit of producing saleable commodities at Uis as well as our other license areas. The positive, global momentum shift in the green tech revolution and a step-change in demand for these strategic materials is the global opportunity that presents itself to AfriTin. AfriTin's ability to economically deliver these saleable products to what we believe is a pent up and ongoing future demand for these minerals remains our focussed objective.

AfriTin is particularly proud of developing Uis in Namibia in conjunction with our majority Namibian workforce at site, our local communities and local and national government. Namibia is one of Africa's leading mining jurisdictions according to the Policy Perspective Index, and we are proud to play our part in its continued development. Listing on the Namibian Stock Exchange in March 2022 solidifies our commitment to the country and our desire to share our success locally with those who played a part in it.

We consider AfriTin today to be a significantly different company to what it was a year ago due to the change achieved and accelerated development progress at Uis. There are considerable future strategic milestones we have set for our teams, and whilst our tin success at Uis provides a proven underpinning foundation on which to build, we are not resting on this.

I applaud the work completed and the foundations laid to secure our future and would like to thank my fellow Board members, management teams, all stakeholders and most of all our people and their families.

GLEN PARSONS

Chairman

31 August 2022

CHIEF EXECUTIVE OFFICER'S STATEMENT

AfriTin has had another successful year, serving as the foundation for the rapid deployment of the Company's various growth initiatives over the coming months. I believe AfriTin is poised to become a leading supplier of technology metals, targeting a more diversified portfolio of production in the near future. We find ourselves a part of a small, unique group of global tin producers, with a differentiating factor being the prospect of underexplored lithium and tantalum in the region, as well as additional historical open pit mines which all form part of our exciting mining operations at our flagship Uis asset.

The market fundamentals for tin provided the perfect backdrop for a mine ramping up its production. Our positive production results coincided with a period of unprecedented tin price highs triggered by low stocks and no sign of relief from a constrained physical supply chain. The Company ended the financial year with cash and cash equivalents of GBP7.365m (2021: GBP1.351m). A GBP4.5 million senior secured term loan agreed with Standard Bank Namibia marked a strong endorsement of the Company and the expansion of our tin production. Our focus now turns to leveraging these cashflows from the tin production, to bring the significant lithium and tantalum revenue streams into production.

The Phase 1 pilot plant at Uis has performed strongly and provided a perfect platform to propel AfriTin from a single commodity producer to a multi-tech metal Company over the next five years. Production at our flagship asset exceeded nameplate capacity with an annual production of 804 tonnes of tin concentrate. A Definitive Feasibility Study for the expansion of the Phase 1 mining and processing facility was published during the year which served as confirmation of the highly attractive economics associated with the low-cost modular expansion of the current Phase 1 plant. The Phase 1 expansion project is currently in progress and is estimated to increase tin concentrate production by 67% by way of a modular expansion of the existing processing facility. The bulk of the civil construction and steel fabrication has been completed, with on-site steel construction currently in progress.

In line with our vision of diversification of our tech-metal exposure through by-product production, raising equity funds of GBP13 million before expenses has put the Company in a position to expedite the Phase 1 expansion and further investigate lithium and tantalum by-product potential and exploration. By-product production as well as the introduction of ore sorting technology, which upgrades feed to the concentrator by up to four times the ROM grade, could transform the overall economics and unit cost of production for Phase 1. The Company is proceeding with the design and procurement of a pilot lithium beneficiation facility as well as the implementation of a tantalum concentrating circuit and ore sorting test circuit. By implementing the pilot phase development of these additional products, the Company aims to take advantage of the burgeoning technology metals market by fast-tracking the by-product streams into production.

Turning to Phase 2, the results of the Phase 2 Preliminary Economic Assessment (PEA) were announced during the year and demonstrated the economics and returns for the expansion (see announcement dated 26 April 2022). Phase 2 should see AfriTin produce globally significant volumes of tin, lithium and tantalum, which the Directors believe are vital in meeting the demands of the transition to a new efficient and greener technology future.

The Directors consider the Damara region to be a metallogenic jewel with huge, underexplored potential. The ore reserve declared at Uis represents a small portion of the historically drilled area in the mining licence property. As a route to expanding our footprint within the extended Uis project area, an exploration drilling campaign commenced during the year with the aim of verifying the historic resources and upgrading the resources to comply with the JORC (2012) Codes. This could see the resource increase significantly from 1.54 Mt, however, at this stage there can be no guarantee what that resource will be. We look forward to providing updates as we progress. The Company's other licence areas in the region encompass additional historical mining areas and there is potential for these to deliver sustained long-term value by reopening a global significant-tech metals province for AfriTin. The exploration of these remains a high priority for the Company. To this end, an exploration programme is in progress to confirm the historical tin and tantalum resource and investigate the spodumene (lithium) discovery announced in March 2022 (after the period under review) at our B1/C1 mining licence. In addition, an aggressive confirmatory drilling program at the historic Brandberg West tin and tungsten mining operation, aims to verify the historical drilling database at this site.

Our fully funded Phase 1 expansion project and the extensive exploration programme currently underway are the fundamental building blocks to positioning AfriTin as a globally significant tech metals producer. While the volatility in the tin prices post year-end posed a challenge for the Group, we are at the advanced stages of securing funding to continue with our growth ambitions. A subsidiary of the Group has entered into a conditional, credit approved, term sheet for a lending facility with the Development Bank of Namibia Limited ("Development Bank of Namibia") to fund the Uis Phase 1 Stage II Continuous Improvement Project. As announced on 5 July 2022, a Proposed Lending Facility comprising a NAD 100 million (approximately GBP5.5 million) Senior Secured Lending Facility has been signed with the Development Bank of Namibia. Although the Lending Facility has been approved by the credit committee and board of the Development Bank of Namibia, there are certain conditions precedent that need to be adhered to, including completion of final legal documentation. At this stage there can be no guarantee the Lending Facility will be entered into, or that any funds will be drawn down, but AfriTin Management have every confidence that it will be. The Company has previously announced that the terms of this proposed lending facility would expire by the end of July 2022 but the Directors confirm that this has now been extended such that completion is anticipated around the end of September 2022. A further update will be provided at that time.

As an acknowledgment of our commitment to developing Namibia and its capital markets further, AfriTin announced its dual listing on the NSX market of the Namibian Stock exchange. We are acutely aware of the influence and impact we can wield, and it is for this reason that the leadership team places great emphasis on creating value for the wider community, our shareholders, investors, and other stakeholders. Central to all decisions is the commitment to reducing carbon emissions and limiting the environmental impact of our operations. An Environmental, Social and Governance (ESG) system was implemented during the course of the year, and we hope to present a strategy to the market in H2 2022.

I would like to congratulate and thank our management teams, staff, and stakeholders for their outstanding efforts, continued support, and for all that we have achieved over the past year. In addition, I would like to thank the other Directors for their guidance and advice. We are committed to expanding and developing Uis, as well as our other Namibian exploration assets as we embark on the route to becoming a significant African multi-commodity tech metals producer. I look forward to updating the market on our progress.

ANTHONY VILJOEN

Chief Executive Officer

31 August 2022

FINANCIAL REVIEW

I am pleased to report the Company's annual revenue of GBP13.6m (2021: GBP5.0m) from the sale of 760 tonnes of tin concentrate (2021: 473 tonnes). During the year under review, 29 shipments (2021: 19 shipments) of tin concentrate left the Uis Mine and were sold to our offtake partner, Thaisarco. The average tin price achieved during the year under review was US$38 680 (2021: US$ 22 150). The increase in tin price achieved resulted in a healthy gross profit margin of 32% (2021: -0.05%).

Administrative expenses across the Group increased to GBP3.675m for the year (2021: GBP2.540m). The increase is as a result of an increase in staff head count given the growth phase of the business as well as increased support services costs on site and at the corporate head office due to increased operations.

The increase in finance cost for the year to GBP0.316m (2021: GBP0.184m) is as a result of interest on the Group's lending facilities no longer being capitalized to the mining asset post the achievement of commercial production at Uis in November 2020. Furthermore, additional interest was charged on the provisional payments that were received from Thaisarco due to exceptionally long transit times caused by global shipping delays.

The Group's loss for the year totalled GBP0.474m (2021: GBP5.796m). Basic loss per share from operations of 0.08 pence was recorded (2021: 0.76 pence). The Group's EBITDA showed significant improvement, increasing from negative GBP4.713m in the prior year to positive GBP2.589m in the current year.

Intangible asset additions amounted to GBP1.577m (2021: GBP0.982m) and property, plant and equipment additions amounted to GBP5.213m (2021: GBP2.570m). Capital expenditure occurred on a variety of growth projects, most notably the Uis Phase 1 Stage II expansion. The construction of this expansion has been completed subsequent to year end. During the year, GBP1.737m was transferred from exploration and evaluation assets to the mining assets as per the requirements of IFRS 6. Please see Note 12 and 13 for further details.

As at 28 February 2022, the Group had cash in the bank amounting to GBP7.365m (2021: GBP1.351m). The inventory balance increased to GBP1.452m (2021: GBP0.997m) as a result of increased production of tin concentrate. At year end, 75 tonnes (2021: 36 tonnes) of tin concentrate was on hand, valued at GBP0.909m (2021: GBP0.373m). This has been shipped subsequent to year end.

Trade receivables increased to GBP3.953m at year end (2021: GBP1.188m) as a result of the higher production rates achieved as well as higher tin prices achieved in the financial year. The balance incorporates a fair value adjustment which was passed to reprice the shipments in transit at year end in accordance with the requirements of IFRS. Trade and other payables increased to GBP2.970m (2021: GBP1.484m) due to additional operating costs being incurred as a result of increased operations.

Borrowings increased due to a GBP4.5 million term loan obtained from Standard Bank for the construction of the Phase 1 Stage II expansion. The loan note facility as well as the Nedbank working capital facility were fully settled during the year.

Equity increased due to a GBP13 million equity raise that was completed in May 2021. The convertible loan note which had been classified as equity was also fully settled in May 2021.

FUNDING

During the year, the Company completed a NAD 90 million (approximately GBP 4.5 million) Term Loan Facility with Standard Bank Namibia. The loan term of 5 years ranked as senior secured debt at an interest rate of 3-month JIBAR plus 4.5%. In addition to the Term Loan, Standard Bank took over the existing short-term banking facilities (working capital facilities) with Nedbank Namibia totalling NAD 43 million (approximately GBP 2.2 million). These facilities will incur an interest rate of Namibian prime lending rate (currently 7.50%) minus 1.00%. Furthermore, Standard Bank also provided AfriTin Mining (Namibia) Pty Limited with a NAD 5 million guarantee to Namibia Power Corporation Pty Limited in relation to a deposit for the supply of electrical power.

Management and the Board of Directors have considered cash flow forecasts and stress testing as a result of the recent decline in Tin prices, and have concluded that the Company will be able to continue in operation for the foreseeable future as a going concern as the group is at an advanced stage of securing strategic funding for the business.

Notwithstanding the above, these circumstances indicate that a material uncertainty exists that may cast significant doubt on the Group's ability to continue as a going concern and, therefore, that the Group may be unable to realise its assets or settle its liabilities in the ordinary course of business. As a result of their review, and despite the aforementioned material uncertainty, the Directors have confidence in the Group's forecasts and have a reasonable expectation that the Group will continue in operational existence for the going concern assessment period and have therefore used the going concern basis in preparing these consolidated financial statements. For further details please see the going concern disclosure in Note 2.

HITEN OOKA

Chief Financial Officer

31 August 2022

DIRECTORS' REPORT

The Directors of AfriTin hereby present their report together with the consolidated financial statements for the year from 1 March 2021 to 28 February 2022.

Principal Activities, Business Review and Future Developments

The principal activity of the Group (AfriTin and its subsidiaries) is mineral exploration and the development of mining and exploration projects in Namibia. A review of the Group's progress and prospects is given in the CEO's statement in this Annual Report.

Principal Risks and Uncertainties

The Group is subject to a variety of risks, specifically those relating to the mining and exploration industry. As an entrepreneurial business operating in commodities and emerging markets, there is clearly an elevated risk which is balanced by potentially greater rewards. The Board is mindful of, and monitors, both its corporate risk and individual project risk. Outlined below are the principal risk factors that the Board feels may affect performance. The risks detailed below are not exhaustive, and further risks and uncertainties may exist which are currently unidentified or considered to be immaterial. The risks are not presented in any order of priority.

 
                    Risk and Impact                          Mitigation 
 Volatility         Tin, tantalum and lithium                The Board and management 
  of metal prices    prices are subject to high               constantly monitor the 
                     levels of volatility and are             markets in which the Group 
                     impacted by numerous factors             operates. Long-term financial 
                     that are outside of the control          planning is undertaken 
                     of the Group. A low tin, tantalum        on a regular basis. 
                     or lithium price as well as 
                     commodity demand could affect            The Board approved the 
                     the financial performance                modular expansion of the 
                     of the Group and this may                Phase 1 to increase tin 
                     affect the ability of the                output and leverage off 
                     Group to fund future growth.             current infrastructure 
                                                              and reduce unit costs through 
                                                              a 67% planned increase 
                                                              in tin production. 
 
                                                              The Board is supporting 
                                                              the exploration and metallurgical 
                                                              test work for the extraction 
                                                              of lithium and tantalum 
                                                              at Uis. The benefits of 
                                                              extracting these additional 
                                                              metals includes enhanced 
                                                              revenue and lowered unit 
                                                              costs. 
                   ---------------------------------------  -------------------------------------- 
 Foreign exchange   With AfriTin's operations                The Group holds the majority 
                     mainly in Namibia and South              of its funds in major currencies. 
                     Africa, but tin sales based              It attempts to match cash 
                     in US Dollars and equity funding         held in a particular currency 
                     based in Pound Sterling, the             to the currency in which 
                     volatility and movement in               liabilities are incurred. 
                     the Rand/Namibian Dollar exchange 
                     rate could be a significant 
                     risk factor to the Group. 
                   ---------------------------------------  -------------------------------------- 
 Exploration        The business of mineral exploration      Exploration projects are 
  and mining         involves a high degree of                carefully managed with 
  risks              risk. Whilst the discovery               regular review by the Board 
                     of a mineral deposit may result          of progress against targets 
                     in substantial rewards, few              and expenditure. Funds 
                     properties at the exploration            are only expended in areas 
                     stage are ultimately developed           deemed prospective. 
                     into producing mines. 
                                                              The Group adheres strictly 
                     The operations of the Group              to a health and safety 
                     may be disrupted by a variety            programme. When constructing 
                     of risks and hazards which               a mine site, external geotechnical, 
                     are beyond the control of                environmental and geo-hydrological 
                     the Group, including geological,         consultants are used to 
                     geotechnical and seismic factors,        ensure all potential risks 
                     environmental hazards, industrial        of this nature are understood 
                     accidents, occupational and              and mitigation plans are 
                     health hazards, technical                put in place. 
                     failures, labour disputes, 
                     unexpected rock properties, 
                     explosions, ooding, and extended 
                     interruptions due to inclement 
                     or hazardous weather conditions 
                     and other acts of God. 
                   ---------------------------------------  -------------------------------------- 
 Development        Development projects have                The Group has appointed 
  projects           no operating history upon                an experienced team of 
                     which to base estimates of               geoscientists and engineers, 
                     future cash operating costs.             complemented by experienced 
                     For development projects,                consultants in specialist 
                     estimates of proven and probable         areas. Any new capital 
                     reserves and cash operating              projects are supported 
                     costs are, to a large extent,            by scoping, feasibility 
                     based on the interpretation              and intensive test work 
                     of geological data obtained              studies. The Uis Phase 
                     from drillholes and other                1 pilot plant has provided 
                     sampling techniques and feasibility      an understanding of the 
                     studies. This derives estimates          metallurgy and processing 
                     of cash operating costs based            elements of the project 
                     upon anticipated tonnage and             which will provide essential 
                     grades of ore to be mined                up-front information for 
                     and processed, as well as                the implementation of Phase 
                     the con guration of the orebody,         2. In addition, detailed 
                     expected throughput and recovery         metallurgical test work 
                     rates, comparable facility               is being undertaken to 
                     and equipment operating costs            assess the feasibility 
                     and other factors.                       of extraction of Lithium 
                                                              and Tantalum prior to making 
                                                              any decision on the extraction 
                                                              of these metals. Third 
                                                              party experts are integral 
                                                              to the metallurgical test 
                                                              work. The company is advancing 
                                                              exploration drilling programmes 
                                                              to increase confidence 
                                                              levels for lithium and 
                                                              tantalum. All resources 
                                                              and reserves need to be 
                                                              JORC compliant and signed 
                                                              off by competent persons. 
                   ---------------------------------------  -------------------------------------- 
 Capital budget     Whilst best estimates are                Capital expenditure and 
  overruns           used in preparing capital                project execution are subject 
                     project budgets, these budgets           to pre-defined governance 
                     are dependent on a number                and approval procedures, 
                     of external factors which                which include feasibility 
                     are beyond the control of                studies prior to implementation. 
                     the Group, resulting in a                Management and the Board 
                     risk of material overruns                regularly review project 
                     versus budget.                           progress and related expenditure 
                                                              on projects. This includes 
                                                              reviewing actual costs 
                                                              against budgeted costs, 
                                                              updating working capital 
                                                              models, and assessing potential 
                                                              impacts on future cash 
                                                              flow. 
                   ---------------------------------------  -------------------------------------- 
 Power and water    Power sources and water supply           The Group has concluded 
  supply             are key to the functioning               a formal electrical power 
                     of viable mining operations.             supply agreement with Namibia 
                     A lack of power or water,                Power Corporation for power 
                     or uncertainties around their            to the mining and processing 
                     uninterrupted supply, would              facility at Uis and this 
                     adversely impact the feasibility         will provide enough power 
                     of the operation.                        for Phase 1 of the project. 
                                                              Diesel generators will 
                                                              serve as backup power. 
 
                                                              A geohydrological study, 
                                                              water drilling and test 
                                                              pumping programme has demonstrated 
                                                              the viability of using 
                                                              groundwater sources for 
                                                              the Phase 1 pilot plant. 
                                                              This was confirmed with 
                                                              the implementation and 
                                                              successful operation of 
                                                              a water supply network. 
 
                                                              Solutions for Phase 2 in 
                                                              terms of both electrical 
                                                              power and water supply 
                                                              are in the process of being 
                                                              reviewed. 
                   ---------------------------------------  -------------------------------------- 
 Financing          The successful extraction                The Group has a supportive 
                     of tin, tantalum and eventually          shareholder base, as well 
                     lithium will require signi               as significant future investor 
                     cant capital investment. The             interest, to engage with 
                     Group's ability to raise further         for future funding rounds. 
                     funds will depend on the success         The management are currently 
                     of existing operations. Market           at an advance stage of 
                     conditions may not be conducive          securing strategic funding 
                     to financing. The Group may              for the business. Refer 
                     not be successful in procuring           to note 2 for details. 
                     the requisite funds.                     The Group monitors cash 
                                                              flows on an ongoing basis." 
                   ---------------------------------------  -------------------------------------- 
 Key personnel      The success and operational              The Group has built a team 
  risk               performance of the Group is              of executives, scientists, 
                     dependent on the skills, expertise       engineers and support personnel 
                     and knowledge of management              who are experienced and 
                     and qualified personnel. Group           versatile enough to address 
                     profitability could be impacted          shortcomings that may arise 
                     in the event that key personnel          from the loss of employees. 
                     leave the business.                      In addition, the Group 
                                                              has developed long-standing 
                                                              relationships with consulting 
                                                              firms in key specialist 
                                                              areas. Remuneration arrangements, 
                                                              given the stage of the 
                                                              Group's development, are 
                                                              intended to be sufficiently 
                                                              competitive to attract, 
                                                              retain and motivate high-quality 
                                                              staff capable of achieving 
                                                              the Group's objectives, 
                                                              thereby enhancing shareholder 
                                                              value. 
                   ---------------------------------------  -------------------------------------- 
 Social license     Past environmental incidents             Our ability to maintain 
  to operate         in the extractive industry               regulatory compliance in 
                     highlight risks such as water            order to protect the environment, 
                     management, tailings storage             as well as the health and 
                     facilities and other potential           safety of host communities 
                     hazards to both the environment          and workers, remains our 
                     and community health and safety.         top priority. We seek to 
                                                              build partnerships with 
                                                              host governments and local 
                                                              communities based on trust 
                                                              to drive shared long-term 
                                                              value while working to 
                                                              minimise the social and 
                                                              environmental impacts of 
                                                              our activities. The Board 
                                                              oversees the Group's environmental, 
                                                              safety and health, and 
                                                              corporate social responsibility 
                                                              programmes, policies and 
                                                              performance and is in the 
                                                              process of setting up an 
                                                              ESG board sub-committee 
                                                              to focus on these matters. 
                   ---------------------------------------  -------------------------------------- 
 Climate change     Climate change and regulatory            AfriTin is working towards 
                     actions to reduce its impact             implementing the recommendations 
                     may affect our suppliers,                of the Task Force on Climate-Related 
                     customers and business model,            Financial Disclosures. 
                     and hence affect AfriTin's               Current risk mitigation 
                     growth and profitability.                around climate change involves 
                     This impact could be amplified           assessing exposure across 
                     by the perception that the               a wide range of outcomes, 
                     Company is undertaking activities        monitoring government action 
                     that are harmful to the environment.     around climate change and 
                                                              constantly striving to 
                                                              reduce the environmental 
                                                              impact of our operations. 
                                                              The Board oversees the 
                                                              Group's environmental, 
                                                              safety and health, and 
                                                              corporate social responsibility 
                                                              programmes, policies and 
                                                              performance and is in the 
                                                              process of setting up an 
                                                              ESG board sub-committee 
                                                              to focus on these matters. 
                   ---------------------------------------  -------------------------------------- 
 COVID-19           COVID-19 resulted in widespread          The countries in which 
                     socio-economic disruption                the Group operates have 
                     around the world. The countries          all instituted measures 
                     where the Group operates,                to limit the spread of 
                     namely Namibia, South Africa             COVID-19. The Group is 
                     and the United Kingdom continue          following the World Health 
                     to be subject to varying levels          Organisation (WHO) guidelines 
                     of lockdown restrictions to              and is complying with the 
                     contain the spread of the                regulations of Namibia, 
                     disease. Despite lockdowns,              South Africa and the United 
                     the Group's operation in Namibia         Kingdom related to COVID-19. 
                     remained open during the course          In addition, the Group 
                     of the reporting period (albeit          has updated its health 
                     with a temporary suspension              and safety policies and 
                     on mining in April 2020) due             procedures to align with 
                     to an exemption granted to               the above guidelines and 
                     the mining industry but did              to translate these guidelines 
                     suffer supply-chain disruptions          into workplace-specific 
                     which delayed production ramp-up.        measures. 
                     The Group's operations are 
                     continuing with minimal disruption       The Group has adopted technological 
                     now that the global lockdown             tools, such as online video 
                     measures have eased. However,            conferencing and project 
                     there continues to be a risk             and team management software, 
                     that lockdown measures return            to enable office-bound 
                     in the event of further COVID-19         staff to work remotely 
                     outbreaks, which may result 
                     in interruptions to operations           The countries in which 
                     through supply chain disruption,         the Group operates have 
                     illness amongst our workforce            rolled out COVID-19 vaccination 
                     and related personnel, together          programmes. All employees 
                     with potential volatility                of the Group been encouraged 
                     in tin, tantalum and lithium             to get vaccinated. 
                     prices. 
 
                     In addition to the above, 
                     COVID-19 restrictions have 
                     resulted in shipping disruptions 
                     and congestion at container 
                     shipping ports. Despite this, 
                     the shipping of tin concentrate 
                     to Thaisarco has continued. 
                   ---------------------------------------  -------------------------------------- 
 Country and        AfriTin's operations are predominantly   The AfriTin team is experienced 
  political risk     based in Namibia. Emerging-market        at operating in Africa. 
                     economies are generally subject          AfriTin routinely monitors 
                     to greater risks including               political and regulatory 
                     legal, regulatory, tax, economic         developments in Namibia 
                     and political risks, which               at both regional and local 
                     are potentially subject to               level. 
                     rapid change. 
                   ---------------------------------------  -------------------------------------- 
 

Results and Dividend

The Group's results are a loss of GBP0.474m. The Directors will not be recommending a dividend.

Share Capital and Funding

Full details of the authorised and issued share capital, together with details of the movements in the Company's issued share capital during the year, are shown in Note 21. The Company has one class of ordinary shares which carry no right to fixed income. Each share carries the right to one vote at general meetings of the Company.

Directors

The Directors who served the Company during the year and to date are as follows:

   Anthony Viljoen                          Chief Executive Officer 
   Glen Parsons                                Chairman/Independent Non-Executive Director 
   Laurence Robb                            Independent Non-Executive Director 
   Terence Goodlace                         Independent Non-Executive Director 

Michael Rawlinson Independent Non-Executive Director (Appointed 20(th) December 2021)

Directors' Interests

The Directors' beneficial interests in the shares of the Company at 28 February 2022 were:

 
                           Ordinary 
                          shares of 
                       no par value   Share options 
 Anthony Viljoen         11 296 690      10 600 000 
                     --------------  -------------- 
 Glen Parsons             4 307 486       4 500 000 
                     --------------  -------------- 
 Laurence Robb            1 300 815       4 000 000 
                     --------------  -------------- 
 Terence Goodlace                 -       4 000 000 
                     --------------  -------------- 
 Michael Rawlinson        2 652 931 
                     --------------  -------------- 
 

Directors' Indemnity Insurance

The Group has maintained insurance throughout the year for its directors and officers against the consequences of actions brought against them in relation to their duties for the Group.

Employee Involvement Policies

The Group places considerable value on the awareness and involvement of its employees in the Group's exploration and development activities. Within the bounds of commercial confidentiality, information is disseminated to all levels of staff about matters that affect the progress of the Group, and that are of interest and concern to them as employees.

Creditors Payment Policy and Practice

The Group's policy is to ensure that, in the absence of dispute, all suppliers are dealt with in accordance with its standard payment policy to abide by the terms of payment agreed with suppliers when agreeing the terms of each transaction. Suppliers are made aware of the terms of payment.

Related-party Transactions

Details of related-party transactions are given in Note 27 of the consolidated financial statements.

Events after Balance Sheet Date

Events after balance sheet date are detailed in Note 26 of the consolidated financial statements.

Statement as to Disclosure of Information to Auditor

The Directors who were in office on the date of approval of these financial statements have confirmed that, as far as they are aware, there is no relevant audit information of which the auditor is unaware. Each of the Directors has confirmed that they have taken all the steps that they ought to have taken as Directors in order to make themselves aware of any relevant audit information and to establish that it has been communicated to the auditor.

Auditor

The Directors will place a resolution before the Annual General Meeting to reappoint BDO LLP as the Group's auditor for the ensuing year.

Electronic Communications

The maintenance and integrity of the Group's website is the responsibility of corporate management and the Directors; the work carried out by the auditor does not involve consideration of these matters and accordingly the auditor accepts no responsibility for any changes that may have occurred to the financial statements since they were initially presented on the website.

The Group's website is maintained in compliance with AIM Rule 26.

By order of the Board

MICHAEL RAWLINSON

Non-executive Director

31 August 2022

CORPORATE GOVERNANCE REPORT

As a listed company traded on the AIM market of the London Stock Exchange, we recognise the importance of sound corporate governance throughout our organisation, giving our shareholders and other stakeholders including employees, customers, suppliers and the wider community confidence in our business. We endeavour to conduct our business in an ethical and sensitive manner irrespective of gender, race, colour or creed.

AfriTin has chosen to adopt the Quoted Companies Alliance (QCA) Corporate Governance Code 2018 for Smaller Companies. Below we outline how we apply each of the code's ten key principles to our business.

 
 Principle                       Application 
 1. Establish a                  The Company is a pure tin company listed in 
  strategy and business           London and its vision is to create a portfolio 
  model that promotes             of world-class, conflict-free, tin-producing 
  long-term value                 assets. The Company's flagship asset is the 
  for shareholders.               Uis brownfield tin mine in Namibia, formerly 
                                  the world's largest hard-rock tin mine. 
 
                                  The Company is managed by an experienced Board 
                                  of Directors and management team with a current 
                                  two-fold strategy: fast-track Uis brownfield 
                                  tin mine in Namibia to commercial production 
                                  (the intention is to ramp up to 10 000 tonnes 
                                  of concentrate) and consolidate other quality 
                                  African tin assets. The Company strives to capitalise 
                                  on the solid supply/demand fundamentals of tin 
                                  by developing a critical mass of tin resource 
                                  inventory, achieving production in the near 
                                  term and further scaling-up production by consolidating 
                                  tin assets in Africa. 
 
                                  Sustainable development principles are integrated 
                                  into corporate strategies and decision-making 
                                  processes by the Board of Directors and management 
                                  team. The Company endeavours to ensure that 
                                  responsible health and safety, environmental, 
                                  human rights and labour practices and policies 
                                  are adopted by suppliers and contractors. 
 
                                  The Company is subject to a variety of risks, 
                                  specifically those relating to the mining and 
                                  exploration industry. The principal risk factors 
                                  facing the business as well as mitigation of 
                                  those risks are outlined in the Directors' Report 
                                  in this Annual Report. 
                                -------------------------------------------------------------- 
 2. Seek to understand           The Board is committed to maintaining good communication 
  and meet shareholder            and having a constructive dialogue with all 
  needs and expectations.         its shareholders. 
 
                                  Management, led by the CEO, undertake regular 
                                  presentations and roadshows to investors as 
                                  appropriate. This enables them to develop a 
                                  balanced understanding of the issues and concerns 
                                  of shareholders. The views of shareholders are 
                                  communicated to the rest of the Board. 
 
                                  Furthermore, the Company keeps shareholders 
                                  informed on the Company's progress through its 
                                  public announcements and its website. All reports 
                                  and press releases are published in the 'Investors' 
                                  section of the Company's website. 
                                -------------------------------------------------------------- 
 3. Take into account            The Board recognises that its prime responsibility 
  wider stakeholder               is to promote the success of the Company for 
  and social responsibilities     the benefit of its stakeholders and members 
  and their implications          as a whole. This success is largely reliant 
  for long-term                   on its relations with its stakeholders, both 
  success.                        internal (employees and shareholders) and external 
                                  (customers, suppliers, business partners and 
                                  advisors). 
 
                                  Employees, community members and other stakeholders 
                                  work in collaboration with one another and with 
                                  transparency and accountability. Open dialogue 
                                  and engagement with community members at our 
                                  sites is central to maintaining a successful 
                                  relationship, and is essential to ensuring long-term 
                                  sustainability for all parties involved. The 
                                  Company continually implements inclusive and 
                                  supportive approaches with local communities, 
                                  to contribute to their economic and social well-being. 
 
                                  The Company endeavours to systematically examine 
                                  the environmental impact of any of our operations 
                                  and will adopt measures to mitigate this challenge. 
                                  The goal is to minimise the negative impacts 
                                  on the environment of the different processes 
                                  related to the extraction of tin. At our operational 
                                  project area, Uis, the non-chemical nature of 
                                  ore beneficiation, combined with an ore that 
                                  is largely free of deleterious elements, contributes 
                                  to a reduced level of environmental risk. Nonetheless, 
                                  the Company ensures compliance with its operational 
                                  environmental management plan through continuous 
                                  monitoring of dust, water and waste management. 
 
                                  The Company maintains a regular dialogue with 
                                  key suppliers. 
 
                                  Managing human capital equitably and sustainably 
                                  is central to the Company's project development 
                                  strategy. The Company promotes an inclusive 
                                  work environment through its recruitment policies, 
                                  management and remuneration policies and development 
                                  initiatives. Within the bounds of commercial 
                                  confidentiality, information is disseminated 
                                  to all levels of staff about matters that affect 
                                  the progress of the Company and that are of 
                                  interest and concern to them as employees. 
 
                                  The Company has set up a share option scheme 
                                  for key employees which gives them a stake in 
                                  the Company's long-term success. 
                                -------------------------------------------------------------- 
 4. Embed effective              As an entrepreneurial business operating in 
  risk management,                emerging markets there is clearly an elevated 
  considering both                risk which is balanced by potentially greater 
  opportunities                   rewards. The Board is mindful of and monitors 
  and threats, throughout         both its corporate risks and individual project 
  the organisation.               risks. 
 
                                  The Board ensures that there is a risk-management 
                                  framework in place which identifies and addresses 
                                  all relevant risks in order to execute and deliver 
                                  strategy. Key risks are reviewed by the Board 
                                  regularly and disclosed in the Directors' Report. 
 
                                  The Audit Committee receives feedback from the 
                                  external auditor on the state of the Company's 
                                  internal controls, and reports their findings 
                                  to the Board. 
                                -------------------------------------------------------------- 
 5. Maintain the                 The Board is made up of the Chairman, three 
  Board as a well-functioning,    Non-Executive Directors and the CEO. 
  balanced team 
  led by the chair.               The roles of the Chairman and CEO are clearly 
                                  separated. 
 
                                  The CEO is responsible for the day-to-day operational 
                                  management of the business and is supported 
                                  by a Chief Financial Officer, a Chief Operating 
                                  Officer, geologists and engineers. 
 
                                  The Chairman is responsible for the leadership 
                                  and effective working of the Board, for the 
                                  implementation of sound corporate governance, 
                                  for setting the Board agenda, and ensuring that 
                                  Directors receive accurate, timely and clear 
                                  information. 
 
                                  The Chairman and Non-Executive Directors (Glen 
                                  Parsons, Terence Goodlace, Laurence Robb and 
                                  Michael Rawlinson) are considered to be independent 
                                  of management and free to exercise independent 
                                  judgement. It is acknowledged that the Non-Executive 
                                  Directors do have share options. However, the 
                                  quantum of these share options is not material 
                                  and is too low to affect independence. 
 
                                  The Board meets at least every three months 
                                  or at any other time deemed necessary for the 
                                  good management of the business. Every Director 
                                  has attended all Board meetings whilst being 
                                  a Director of the Company. 
                                -------------------------------------------------------------- 
 6. Ensure that                  Directors who have been appointed to the Company 
  between them the                have been chosen because of the skills, knowledge 
  Directors have                  and experience they offer considering the stage 
  the necessary                   of the Company and the strategy that it is pursuing. 
  up-to-date experience, 
  skills and capabilities.        The composition of the Board as well as biographical 
                                  details of Board members can be found on the 
                                  Board of Directors page on the Company website. 
 
                                  Furthermore, the Company has put in place an 
                                  Audit Committee and a Remuneration Committee. 
 
                                  The Directors have access to training (online 
                                  training or external training courses) to ensure 
                                  that their skills are kept up to date. The Board 
                                  and its committees will also seek external expertise 
                                  and advice where required. 
 
                                  As part of the induction programme conducted 
                                  by the Company's nominated adviser, Directors 
                                  are briefed on regulations that are relevant 
                                  to their role as directors of an AIM-quoted 
                                  company. 
 
                                  Hiten Ooka (Chief Financial Officer) and Frans 
                                  van Daalen (Chief Operating Officer) attend 
                                  Board meetings by invitation to provide input 
                                  from a financial and operational perspective. 
                                -------------------------------------------------------------- 
 7. Evaluate Board               The Board considers evaluation of its performance 
  performance based               and that of its committees and individual Directors 
  on clear and relevant           to be an integral part of corporate governance 
  objectives, seeking             to ensure Board Members have the necessary skills, 
  continuous improvement.         experience and abilities to fulfil their responsibilities. 
                                  The goal of the Board evaluation process is 
                                  to identify and address opportunities for improving 
                                  the performance of the Board and to solicit 
                                  honest, genuine and constructive feedback. 
 
                                  The Chairman is responsible for ensuring the 
                                  evaluation process is "fit for purpose", as 
                                  well as for dealing with matters raised during 
                                  the process. 
 
                                  Succession planning is a vital task for boards 
                                  and the management of succession planning represents 
                                  a key measure of the effectiveness of the Board. 
                                -------------------------------------------------------------- 
 8. Promote a corporate          The Company has a strong ethical culture, which 
  culture that is                 is promoted by the Board and the management 
  based on ethical                team. 
  values and behaviours. 
                                  The Company endeavours to conduct its business 
                                  in an ethical, professional and responsible 
                                  manner, treating all employees, customers, suppliers 
                                  and partners with equal courtesy irrespective 
                                  of gender, race, colour or creed. 
                                -------------------------------------------------------------- 
 9. Maintain governance               The Board approves the Company's strategy and 
  structures and                       ensures that necessary resources are in place 
  processes that                       in order for the Company to meet its objectives. 
  are fit for purpose 
  and support good                     Whilst the Board has delegated the operational 
  decision-making                      management of the Company to the Chief Executive 
  by the Board.                        Officer and other senior management, a number 
                                       of specific matters are subject to the approval 
                                       of the Board. These include: 
                                        *    annual budget; 
 
 
                                        *    interim and final financial statements; 
 
 
                                        *    management structure and appointments; 
 
 
                                        *    mergers, acquisitions and disposals; 
 
 
                                        *    capital raising; 
 
 
                                        *    joint ventures and investments; 
 
 
                                        *    corporate strategy; 
 
 
                                        *    projects of a capital nature; and 
 
 
                                        *    major contracts. 
 
 
 
                                       The Non-Executive Directors have a particular 
                                       responsibility to constructively challenge the 
                                       strategy proposed by the executive management 
                                       team, to scrutinise and challenge performance, 
                                       to ensure appropriate remuneration, and to ensure 
                                       that succession planning is in place in relation 
                                       to senior members of the management team. The 
                                       senior management team enjoy open access to 
                                       the Non-Executive Directors. 
 
                                       The Chairman is responsible for leadership of 
                                       the Board and ensuring its effectiveness. The 
                                       Chairman with the assistance of the Chief Executive 
                                       Officer sets the Board's agenda and ensures 
                                       that adequate time is available for discussion 
                                       of all agenda items, in particular strategic 
                                       issues. 
 
                                       The roles of the Audit Committee and the Remuneration 
                                       Committee are set out further on in this report. 
 
                                       The governance structures will evolve over time 
                                       in parallel with the Company's objectives, strategy, 
                                       and business model to reflect the development 
                                       of the Company. 
                                -------------------------------------------------------------- 
 10. Communicate                      The Board is committed to maintaining good communication 
  how the company                      and having constructive dialogue with all of 
  is governed and                      its stakeholders, including shareholders, providing 
  is performing                        them with access to information to enable them 
  by maintaining                       to come to informed decisions about the Company. 
  a dialogue with                      The 'Investors' section on the Company's website 
  shareholders and                     provides all required regulatory information 
  other relevant                       as well as additional information shareholders 
  stakeholders.                        may find helpful, including: 
                                        *    information on Board members, advisers and 
                                             significant shareholdings; 
 
 
                                        *    a historical list of the Company's announcements; 
 
 
                                        *    corporate governance information; 
 
 
                                        *    historical Annual Reports and notices of Annual 
                                             General Meetings; and 
 
 
                                        *    share price information and interactive charting 
                                             facilities to assist shareholders in analysing 
                                             performance. 
 
 
 
                                       Results of shareholder meetings and details 
                                       of votes cast will be publicly announced through 
                                       the regulatory system and displayed on the Company's 
                                       website with suitable explanations of any actions 
                                       undertaken as a result of any significant votes 
                                       for or against resolutions. 
                                -------------------------------------------------------------- 
 

The Board of Directors

The Board currently comprises:

Independent Non-Executive Chairman

   --    Glen Parsons (appointed 23 October 2017) 

Independent Non-Executive Directors

   --    Laurence Robb (appointed 23 October 2017) 
   --    Terence Goodlace (appointed 23 May 2018) 
   --    Michael Rawlinson (appointed 20 December 2021) 

Executive Director - Chief Executive Officer

   --    Anthony Viljoen (appointed 23 October 2017) 

Operational management in South Africa and Namibia is led by Anthony Viljoen supported by a Chief Financial Officer (Hiten Ooka), a Chief Operating Officer (Frans van Daalen), geologists and engineers. Operational management is also supported technically through various consultancy agreements that were in place during the year under review.

The Board met formally four times during the year.

All press releases, including operational updates, are approved by the entire Board.

The Audit Committee

The Audit Committee meets at least twice a year and is composed exclusively of Non-Executive Directors: Glen Parsons (Chairman) and Michael Rawlinson. The Chief Executive Officer, Anthony Viljoen, and the Chief Financial Officer, Hiten Ooka, attend Audit Committee meetings by invitation. The committee is responsible for:

-- reviewing the annual financial statements and interim reports prior to approval, focusing on changes in accounting policies and practices, major judgemental areas, significant audit adjustments, going concern and compliance with accounting standards, stock exchange requirements, and legal requirements;

-- receiving and considering reports on internal financial controls, including reports from the auditor, and reporting auditor findings to the Board;

-- considering the appointment of the auditor and their remuneration, including reviewing and monitoring their independence and objectivity;

-- meeting with the auditor to discuss the scope of the audit, issues arising from their work and any matters they wish to raise; and

-- developing and implementing policy on the engagement of the external auditor to supply non-audit services.

The Audit Committee is provided with details of any proposed related-party transactions in order to consider and approve the terms and conditions of such transactions.

The Audit Committee met three times during the year to consider the following agenda items:

July 2021:

   --      Critical accounting estimates 
   --      Going concern assessment 
   --      Approval of the Annual Report for the period ended February 2021 

September 2021:

   --      Approval of the half-year results and report to 31 August 2020 
   --      Going concern assessment 

February 2022:

   --      Auditor independence 
   --      External audit plan for the year ended February 2022 

The Remuneration Committee

The Remuneration Committee meets at least once a year and is composed exclusively of Non-Executive Directors: Michael Rawlinson (Chair) and Glen Parsons.

The Committee is responsible for reviewing the performance of senior management and for setting the scale and structure of their remuneration, determining the payment of bonuses, considering the grant of options under any share option scheme and, in particular, the price per share and the application of performance standards which may apply to any such grant, paying due regard to the interests of shareholders and the performance of the Group.

The Remuneration Committee met formally once during the year to consider the following agenda items:

February 2022:

   --    Initiation of STIP and Share Option plan for Organisation (2021/2022) 
   --    Review and implementation of Balance Score Card for organisation performance (2021/2022) 

The Environmental, Social and Governance Committee

The ESG committee comprises of the following Board of Directors: Terence Goodlace (Chairman), Laurence Robb and Anthony Viljoen. Additional members of the Board, Executive Management and the ESG team attend the committee meetings by invitation.

The Committee ensures that ESG is embedded in the business' operations. We are conscious of the impact ESG has on the long-term success of the business. Our approach to ESG is one that is inclusive, intended to benefit all stakeholders involved.

The ESG Committee's role to date has been to advise on the approach the Company should implement to maintain a good ESG scorecard and Social Licence to operate. This includes drafting of the ESG Strategy, policies, compliance systems and monitoring the Company's performance against industry practices.

The ESG Committee met twice during the year to consider the following agenda items:

August 2021:

   --      Governance Structure of the Committee and Organisation 
   --      Identification of critical policies and procedures to be implemented 
   --      4 x polices 

o Occupational Health and Safety Policy

o Environmental Policy

o Sustainable Development Policy

o Risk Management Policy

February 2022:

   --      Climate change risk assessment 
   --      Amendment of Group Diversity Policy 
   --      Development of 5-year ESG Strategy 

Internal Controls

The Board acknowledges its responsibility for the Group's systems of internal controls and for reviewing their effectiveness. These internal controls are designed to safeguard the assets of the Group and to ensure the reliability of financial information for both internal use and external publication. Whilst the Board is aware that no system can provide absolute assurance against material misstatement or loss, in light of the increased activity and further development of the Group, continuing reviews of internal controls will be undertaken to ensure that they are adequate and effective.

Risk Management

The Board considers risk assessment and management to be important in achieving its strategic objectives. Project milestones and timelines are regularly reviewed.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The Directors are responsible for preparing the Directors' Report and the financial statements in accordance with applicable law and regulations.

The Companies (Guernsey) Law, 2008 requires the Directors to prepare the Annual Report and Consolidated Financial Statements for each financial year in accordance with UK Adopted International Accounting Standards and AIM Rules for Companies.

The financial statements of the Group are required by law to give a true and fair view of the state of the Group's affairs at the end of the financial year and of the profit or loss of the Group for that year and are required by UK Adopted International Accounting Standards to reflect fairly the financial position and performance of the Group.

In preparing the Group financial statements, the Directors are required to:

   i)       Select suitable accounting policies and then apply them consistently; 
   ii)      Make judgements and accounting estimates that are reasonable and prudent; 

iii) State whether they have been prepared in accordance with UK Adopted International Accounting Standards ; and

iv) Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.

The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Group's transactions, disclose with reasonable accuracy at any time the financial position of the Group, and enable them to ensure that the financial statements comply with the Companies (Guernsey) Law, 2008. They are also responsible for safeguarding the assets of the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Directors are responsible for the maintenance and integrity of the corporate and financial information included on the Group's website. Legislation in Guernsey governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

The Directors confirm they have discharged their responsibilities as noted above.

Independent auditor's report to the members of AfriTin Mining Limited

Opinion on the financial statements

In our opinion the financial statements:

-- give a true and fair view of the state of the Group's affairs as at 28 February 2022 and of its loss for the year then ended;

-- have been properly prepared in accordance with UK adopted international accounting standards; and

-- have been prepared in accordance with the requirements of the Companies (Guernsey) Law, 2008.

We have audited the financial statements of AfriTin Mining Limited (the 'Company') and its subsidiaries (the 'Group') for the year ended 28 February 2022 which comprise the consolidated statement of comprehensive income, the consolidated statement of financial position, the consolidated statement of changes in equity, the consolidated statement of cash flows and notes to the consolidated financial statements, including a summary of significant accounting policies

The financial reporting framework that has been applied in their preparation is applicable law and UK adopted international accounting standards.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs

(UK)) and applicable law. Our responsibilities under those standards are further described in the

Auditor's responsibilities for the audit of the financial statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Independence

We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements.

Material uncertainty related to going concern

We draw attention to note 2 to the financial statements, which indicates that the Group will need to raise additional funding within twelve months from the date of approval of financial statements to fund their working capital and capital projects. As stated in note 2, these events or conditions, indicate that a material uncertainty exists that may cast significant doubt on the Group's ability to continue as a going concern. Our opinion is not modified in respect of this matter.

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Our evaluation of the Directors' assessment of the Group and the Parent Company's ability to continue to adopt the going concern basis of accounting and our audit procedures in response to key audit matter included the following:

   --      We discussed with Directors and the Audit Committee their assessment of potential risks and uncertainties, forecast commodity prices and the availability of financing that are relevant to the Group's business model and operations.  We formed our own assessment of risks and uncertainties based on our understanding of the business and mining sector and considered these in performing our own sensitivities. 

-- We reviewed the latest board approved cash flow forecasts for the Group to December 2023. We challenged management's assumptions in respect of level of production, Forecast Tin prices, operating costs and capital expenditure. In doing so, we considered factors such as empirical operational performance, recent cost profile and market analyst commentary regarding forecast commodity prices.

-- We recalculated forecast covenant compliance calculations and assessed the consistency of such calculations with the ratios stated in the relevant lender agreements.

-- We assessed the sensitivity analysis performed in respect of key assumptions underpinning the forecasts and considered management's conclusions as to whether such scenarios are reasonably possible based on our knowledge of the business and operating environment.

-- We discussed with management and the Board the Group's strategy to access capital to fund its development plans and working capital needs. We considered the Director's judgement that they had reasonable expectation of securing necessary funding and the timing of such funding requirement.

-- We reviewed and considered the adequacy of the disclosure within the financial statements relating to Directors' assessment of the going concern basis of preparation with the requirements of the financial reporting framework, our understanding of the business and the Directors going concern assessment.

Our responsibilities and the responsibilities of the Directors with respect to going concern are described in the relevant sections of this report.

Overview

 
 Coverage            89% (2021: 89%) of Group total assets 
                      99% (2021: 99%) of Group revenue 
 Key audit matters                                        2022   2021 
                       Going concern                       Yes    Yes 
                       Carrying value of the Uis mining    Yes    Yes 
                        assets 
                    ------------------------------------------------- 
 Materiality         Group financial statements as a whole 
                      GBP370,000 (2021: GBP230,000) based on 1% of 
                      total assets (2021: 1% of total assets) 
                    ------------------------------------------------- 
 

An overview of the scope of our audit

Our Group audit was scoped by obtaining an understanding of the Group and its environment, including the Group's system of internal control, and assessing the risks of material misstatement in the financial statements. We also addressed the risk of management override of internal controls, including assessing whether there was evidence of bias by the Directors that may have represented a risk of material misstatement.

In approaching the Group audit we considered how the Group is organised and managed. Whilst AfriTin Mining Limited is a Company registered in Guernsey and listed on AIM in the UK and the NSX in Namibia, the Group's principal operations are located in Namibia and South Africa. We assessed the business as being principally a single project comprising of the Namibia subsidiaries that operate the Uis Mine, a corporate head office function and an exploration business unit.

The Namibia subsidiaries that operate the Uis Mine and the corporate head office function were regarded as being significant components of the Group and were subject to full scope audits.

The audits of each of the components were principally performed in the United Kingdom, Namibia and South Africa. All of the audits were conducted by either the group audit team or BDO network member firms.

The remaining components of the Group were considered non-significant and these components were principally subject to analytical review procedures, together with specified audit procedures over exploration and evaluation related assets. This work was conducted by BDO network member firms.

Our involvement with component auditors

For the work performed by component auditors, we determined the level of involvement needed in order to be able to conclude whether sufficient appropriate audit evidence has been obtained as a basis for our opinion on the Group financial statements as a whole. Our involvement with component auditors included the following:

   --           We held planning meetings with the component auditors and local management. 

-- Detailed Group reporting instructions were sent to the component auditors, which included significant areas to be covered by the audits and set out the information to be reported to the Group audit team.

-- The Group audit team was actively involved in the direction of the audits performed by the component auditor for Group reporting purposes, along with the consideration of findings and determination of conclusions drawn. We performed our own additional procedures in respect of certain of the significant risk areas that represented key audit matters in addition to the procedures performed by the component auditor.

-- We received and reviewed Group reporting submissions and performed a review of the component auditors' file. Our review was performed remotely using our online audit software as a result of travel restrictions due to Covid-19.

-- We held clearance meetings remotely with the component auditors and local management to discuss significant audit and accounting issues and judgements.

Key audit matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial statements of the current period and include the most significant assessed risks of material misstatement (whether or not due to fraud) that we identified, including those which had the greatest effect on: the overall audit strategy, the allocation of resources in the audit, and directing the efforts of the engagement team. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. In addition to the matter described in the Material uncertainty related to going concern section above, we have determined the matters described below to be key audit matters.

 
 Key audit matter                                 How the scope of our audit 
                                                   addressed the key audit matter 
 Carrying          Details of the carrying        We reviewed and challenged management's 
  value of          value of the Uis mining        impairment indicator assessment 
  the Uis           assets are disclosed           for the Uis Mine mining assets 
  mining assets     in Note 13: Property,          which was carried out in accordance 
                    Plant and Equipment.           with relevant accounting standards 
  See Note          As disclosed in Note           in order to determine whether 
  2 Critical        2 Critical accounting          there were any indicators of 
  accounting        estimates and judgements,      impairment. In doing so, our 
  estimates         management have performed      procedures included: 
  and judgements    an impairment indicator         *    Reviewing the Competent Person's Report to support 
  and Note          review for Uis mining                the mineral reserve and performed an assessment of 
  13: Property,     assets in accordance                 the independence and competence of managements 
  Plant and         with the accounting                  expert. 
  Equipment.        standards. In undertaking 
                    this assessment management 
                    have prepared the               *    Critically reviewing the Life of Mine ('LoM') 
                    underlying valuation                 forecast by making enquiries of operational 
                    model of the Uis mine.               management, evaluating it against our understanding 
                    As set out in Note                   of the operations and historic performance, and 
                    2, Management have                   evaluating the consistency of available reserves with 
                    concluded that no                    the Competent Person's Report. 
                    indicators of impairment 
                    have been identified 
                    at year-end.                    *    Obtaining management's impairment model to confirm 
                                                         that headroom existed over the asset carrying value 
                    The assessment of                    as part of our assessment of potential impairment 
                    the recoverable value                indicators. 
                    of the Uis mining 
                    assets requires significant 
                    judgement and estimates         *    Checking the mathematical accuracy of management's 
                    to be made by management             impairment model. 
                    - in particular regarding 
                    the inputs applied 
                    in the models including;        *    Challenging the significant inputs and assumptions 
                    future tin prices,                   used in the managements impairment model and whether 
                    production and reserves,             these were indicative of potential bias. This 
                    operating and development            included comparing forecast commodity prices to a 
                    costs and discount                   range of third-party independent market outlook 
                    rates.                               reports and historical actual data, comparing the 
                                                         forecast production to third party feasibility and 
                    The carrying value                   resource studies. We compared forecasted costs 
                    of the Uis mining                    against the expected production profiles in the mine 
                    assets is therefore                  plans and recent historical performance. 
                    considered a key audit 
                    matter given the level 
                    of judgement and estimation     *    Recalculating the discount rate and utilising BDO 
                    involved.                            valuation experts to assist us in assessing 
                                                         managements discount rate by recalculating it in 
                                                         reference to external data. 
 
 
                                                    *    Review of management's sensitivity analysis and 
                                                         performance of our own sensitivity analysis over 
                                                         individual key inputs including tin prices, discount 
                                                         rate and plant recovery. 
 
 
 
                                                   Key observation: 
                                                   We found the key assumptions 
                                                   made by management in their 
                                                   impairment model to be within 
                                                   an acceptable range and found 
                                                   management's conclusion that 
                                                   no impairment indicator was 
                                                   present in respect of the Uis 
                                                   mining assets at 28 February 
                                                   2022 to be appropriate. 
                  -----------------------------  ------------------------------------------------------------- 
 
 

Our application of materiality

We apply the concept of materiality both in planning and performing our audit, and in evaluating the effect of misstatements. We consider materiality to be the magnitude by which misstatements, including omissions, could influence the economic decisions of reasonable users that are taken on the basis of the financial statements.

In order to reduce to an appropriately low level the probability that any misstatements exceed materiality, we use a lower materiality level, performance materiality, to determine the extent of testing needed. Importantly, misstatements below these levels will not necessarily be evaluated as immaterial as we also take account of the nature of identified misstatements, and the particular circumstances of their occurrence, when evaluating their effect on the financial statements as a whole.

Based on our professional judgement, we determined materiality for the financial statements as a whole and performance materiality as follows:

 
                                        Group financial statements 
                                       2022                    2021 
                              ----------------------  --------------------- 
 Materiality                        GBP370,000              GBP230,000 
                              ----------------------  --------------------- 
 Basis for determining          1% of total assets      1% of total assets 
  materiality 
                              ----------------------  --------------------- 
 Rationale for the benchmark   We consider total assets to be the 
  applied                       most significant determinant of the 
                                Group's financial performance used 
                                by members given the Group. 
                                The Group has invested significant 
                                sums on its production and non-production 
                                mining assets and these are considered 
                                to be the key value driver for the 
                                Group as its assets are an indicator 
                                of future value to shareholders. 
                              --------------------------------------------- 
 Performance materiality            GBP278,000              GBP172,500 
                              ----------------------  --------------------- 
 Basis for determining         Performance materiality was set at 
  performance materiality       75% of the above materiality level 
                                based on assessment of aggregation 
                                risk considering factors such as 
                                volume and nature of errors in prior 
                                periods. 
                              --------------------------------------------- 
 

Component materiality

We set materiality for each component of the Group based on a percentage between 18% and 83% (2021: 20% and 55%) of Group materiality dependent on the size and our assessment of the risk of material misstatement of that component. Component materiality ranged from GBP66,000 to GBP264,000 (2021: GBP46,000 to GBP128,000). In the audit of each component, we further applied performance materiality levels of 75% (2021: 75%) of the component materiality to our testing to ensure that the risk of errors exceeding component materiality was appropriately mitigated.

Reporting threshold

We agreed with the Audit Committee that we would report to them all individual audit differences in excess of GBP18,500 (2021:12,000). We also agreed to report differences below this threshold that, in our view, warranted reporting on qualitative grounds.

Other information

The directors are responsible for the other information. The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Other Companies (Guernsey) Law, 2008 reporting

We have nothing to report in respect of the following matters where the Companies (Guernsey) Law, 2008 requires us to report to you if, in our opinion:

   --     proper accounting records have not been kept by the Company; or 
   --     the financial statements are not in agreement with the accounting records; or 

-- we have failed to obtain all the information and explanations which, to the best of our knowledge and belief, are necessary for the purposes of our audit.

Responsibilities of Directors

As explained more fully in the Statement of Directors' Responsibilities, the Directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Directors are responsible for assessing the Group's and the Parent Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors either intend to liquidate the Group or the Parent Company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Extent to which the audit was capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

-- Holding discussions with the Directors and the Audit Committee and made enquiries about whether they were aware of any known or suspected instances of non-compliance with laws and regulations or fraud;

-- Gaining an understanding of the of the laws and regulations relevant to the Group and the industry in which it operates, through discussion with Directors and our knowledge of the industry. These included the listing rules, the financial reporting framework, Guernsey Companies Law, tax legislation and the various Mining Regulations in Namibia;

-- Communicating relevant identified laws and regulations and potential fraud risks to all engagement team members and remaining alert to any indications of fraud or non-compliance with laws and regulations throughout the audit;

-- Assessing the susceptibility of the Group's financial statements to material misstatement, including how fraud might occur by making enquiries of the Directors and the Audit Committee during the planning and execution phases of our audit to understand where they considered there to be susceptibility to fraud, considering the risk of management override of controls and relevant controls established to address risks identified to prevent or detect fraud.

We believed the areas in which fraud might occur were in the management override of controls, recognition of revenue in the correct period, and bias in accounting estimates. In response our procedures included, but were not limited to;

   -       Agreeing the financial statement disclosures to underlying supporting documentation; 

- Addressing the fraud risk in relation to revenue recognition by testing one hundred percent of revenue transactions to supporting documentation, including testing the that revenue was recorded in the correct period by testing revenue transactions in the period proceeding and preceding year end.

- Addressing the risk of fraud through management override of internal controls, by testing the appropriateness of journal entries made throughout the year by applying specific criteria to select journals which may be indicative of possible irregularities or fraud;

- Assessing areas of the Financial Statements which include judgement and estimates, as set out in note 2 to the financial statements and in our Key audit matters section above and evaluated whether there was evidence of bias by the Directors;

- Made of enquiries of Directors as to whether there was any correspondence from regulators in so far as the correspondence related to the Financial Statements;

- Reading minutes from board meetings of those charges with governance to identify any instances of non-compliance with laws and regulations

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

A further description of our responsibilities is available on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities . This description forms part of our auditor's report.

Use of our report

This report is made solely to the Company's members, as a body, in accordance with Section 262 of the Companies (Guernsey) Law, 2008. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Jack Draycott

For and on behalf of BDO LLP, Statutory Auditor

London, United Kingdom

31 August 2022

BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127).

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the year ended 28 February 2022

 
                                                                    Year ended    Year ended 
                                                                   28 February   28 February 
                                                                          2022          2021 
                                            Notes                          GBP           GBP 
Continuing operations 
Revenue                                       5                     13 615 045     4 985 107 
Cost of Sales                                 6                    (9 302 518)   (4 987 696) 
                                                   ---------------------------  ------------ 
Gross profit / (loss)                                                4 312 527       (2 589) 
Administrative expenses                       7                    (3 674 662)   (2 539 762) 
Impairment of exploration licences                                           -   (3 069 232) 
Other income                                                            61 753             - 
                                                   ---------------------------  ------------ 
Operating loss                                                         699 619   (5 611 583) 
Finance income                                                           6 545             - 
Finance cost                                  9                      (316 365)     (184 300) 
                                                   ---------------------------  ------------ 
Profit / (loss) before tax                                             389 798   (5 795 883) 
Deferred tax movement                        10                      (864 199)             - 
                                                   ---------------------------  ------------ 
Profit / (loss) for the year                                         (474 401)   (5 795 883) 
                                                   ===========================  ============ 
Other comprehensive income / (loss) 
Items that will or may be reclassified 
 to profit or loss: 
Exchange differences on translation 
 of share-based payment 
 reserve                                                                   767         (531) 
Exchange differences on translation 
 of foreign operations                                                 526 779     (526 231) 
Exchange differences on non-controlling 
 interest                                                              (6 700)         1 390 
 
Total comprehensive income for the 
 year                                                                   46 445   (6 321 255) 
                                                   ===========================  ============ 
 
Profit / (loss) for the year attributable 
 to: 
Owners of the parent                                                 (815 645)   (5 694 962) 
Non-controlling interests                    24                        341 244     (100 921) 
                                                                     (474 401)   (5 795 883) 
                                                   ===========================  ============ 
 
Total comprehensive profit / (loss) 
 for the year attributable to: 
Owners of the parent                                                 (288 098)   (6 221 724) 
Non-controlling interests                                              334 543      (99 531) 
                                                                        46 445   (6 321 255) 
                                                   ===========================  ============ 
 
Loss per ordinary share 
Basic loss per share (in pence)              11                         (0.08)        (0.76) 
 
 

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As at 28 February 2022

 
                                                 28 February              28 February 
                                                        2022                     2021 
                                         Notes           GBP                      GBP 
Assets 
Non-current assets 
Intangible assets                         12       5 147 782                5 240 461 
Property, plant and equipment             13      19 150 092               13 634 701 
                                                ------------  ----------------------- 
Total non-current assets                          24 297 875               18 875 162 
                                                ============  ======================= 
 
Current assets 
Inventories                               14       1 451 933                  996 698 
Trade and other receivables               15       3 953 382                1 188 152 
Cash and cash equivalents                 16       7 365 379                1 351 200 
                                                ------------  ----------------------- 
Total current assets                              12 770 694                3 536 050 
                                                ============  ======================= 
 
Total assets                                      37 068 569               22 411 212 
                                                ============  ======================= 
 
Equity and liabilities 
Equity 
Share capital                             21      38 655 078               25 608 001 
Convertible loan note reserve                              -                2 170 645 
Accumulated deficit                             (10 739 321)             (10 030 679) 
Warrant reserve                           22         192 632                  211 348 
Share-based payment reserve               23         704 828                  743 615 
Foreign currency translation reserve             (1 534 560)              (2 061 339) 
Equity attributable to the owners 
 of the parent                                    27 278 657               16 641 591 
                                                ------------  ----------------------- 
Non-controlling interests                 24         183 200                (151 344) 
                                                ------------  ----------------------- 
Total equity                                      27 461 857               16 490 247 
                                                ============  ======================= 
 
Non-current liabilities 
Environmental rehabilitation liability    19         295 151                  180 917 
Borrowings                                17       4 095 405                        - 
Lease liability                           20         167 216                  260 512 
Deferred tax liability                    10         861 784                        - 
Total non-current liabilities                      5 419 556                  441 429 
                                                ============  ======================= 
 
Current liabilities 
Trade and other payables                  18       2 969 833                1 484 482 
Borrowings                                17       1 024 736                3 869 489 
Lease liability                           20         192 586                  125 565 
                                                ------------  ----------------------- 
Total current liabilities                          4 187 155                5 479 536 
                                                ============  ======================= 
 
Total equity and liabilities                      37 068 569               22 411 212 
                                                ============  ======================= 
 

The notes that follow in this report form part of these financial statements.

The financial statements were authorised and approved for issue by the Board of Directors and authorised for issue on 31 August 2022.

MICHAEL RAWLINSON

Non-executive Director

31 August 2022

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the year ended 28 February 2022

 
                                                                                 Foreign 
                            Convertible                         Share-based     currency 
                     Share    loan note  Accumulated   Warrant      payment  translation             Non-controlling      Total 
                   capital      reserve      deficit   reserve      reserve      reserve      Total        interests     equity 
                       GBP          GBP          GBP       GBP          GBP          GBP        GBP              GBP        GBP 
Total equity 
 at 29 
 February           20 487                    (4 365                              (1 535     18 995                      18 943 
 2020                  239    3 770 645         500)    78 651      559 534         108)        461         (51 812)        649 
Loss for the                                                                                 (5 694                      (5 795 
 year                    -            -  (5 694 962)         -            -            -       962)        (100 921)       883) 
Other 
 comprehensive 
 income 
 / (loss)                -            -            -         -        (531)    (526 231)  (526 762)            1 390  (525 372) 
Transactions 
with owners: 
Share-based 
 payments                -            -            -         -      281 431            -    281 431                -    281 431 
Issue of 
 shares          3 774 079            -            -         -     (96 819)            -  3 677 260                -  3 677 260 
Share issue 
 costs           (253 317)            -            -         -            -            -  (253 317)                -  (253 317) 
Conversion of 
 convertible 
 loan notes      1 600 000  (1 600 000)            -                      -            -          -                -          - 
Warrants 
 issued in the 
 year                    -            -            -   162 480            -            -    162 480                -    162 480 
Warrants 
 expired in 
 the 
 year                    -            -       29 783  (29 783)            -            -          -                -          - 
                ----------  -----------  -----------  --------  -----------  -----------  ---------  ---------------  --------- 
Total equity 
 at 28 
 February           25 608                   (10 030                              (2 061     16 641                      16 490 
 2021                  001    2 170 645         679)   211 348      743 615         339)        591        (151 344)        247 
Loss for the 
 year                    -            -    (815 645)         -            -            -  (815 645)          341 244  (474 401) 
Other 
 comprehensive 
 income 
 / loss                  -            -            -         -          767      526 779    527 546           (6700)    520 846 
Transactions 
with owners: 
Issue of                                                                                     13 029                      13 029 
 shares         13 039 102            -            -         -     (10 000)            -        102                -        102 
Share issue 
 costs           (793 775)            -            -         -            -            -  (793 775)                -  (793 775) 
Share-based 
 payments                -            -            -         -       88 088            -     88 088                -     88 088 
Share options 
 exercised 
 during the 
 year              308 545            -      117 642         -    (117 642)            -    308 545                -    308 545 
Warrants 
 exercised in 
 the 
 year               63 150            -       18 716  (18 716)            -            -     63 150                -     63 150 
Issue costs 
 reclassified 
 to retained 
 earning                 -       29 355     (29 355)         -            -            -          -                -          - 
Settlement of 
 convertible 
 loan note in 
 shares            430 055    (430 055)            -         -            -            -          -                -          - 
Settlement of 
 convertible 
 loan note in                                                                                (1 769                      (1 769 
 cash                    -  (1 769 945)            -         -            -            -       945)                -       945) 
Total equity 
 at 28 
 February           38 655                   (10 739                              (1 534     27 278                      27 461 
 2022                  078            -         321)   192 632      704 828         560)        657          183 200        857 
                ==========  ===========  ===========  ========  ===========  ===========  =========  ===============  ========= 
 

CONSOLIDATED STATEMENT OF CASH FLOWS

For the year ended 28 February 2022

 
                                                      Year ended    Year ended 
                                                     28 February   28 February 
                                                            2022          2021 
                                             Notes           GBP           GBP 
Cash flows from operating activities 
Profit / (loss) before taxation                          389 798   (5 795 883) 
Adjustments for: 
Fair value adjustment to customer 
 contract                                      5       (137 019)     (205 635) 
Depreciation of property, plant and 
 equipment                                    13       1 861 023       898 528 
Depreciation of intangible assets             12          28 198             - 
Impairment of exploration licences                             -     3 069 232 
Share-based payments                                      55 793       217 407 
Equity-settled transactions                               66 101       618 260 
Finance income                                           (6 545)             - 
Finance costs                                  9         316 365       184 300 
Changes in working capital: 
Increase in receivables                       15     (2 866 192)     (352 953) 
Increase in inventory                         14       (418 556)     (753 688) 
Increase in payables                          18       1 006 060       619 573 
                                                    ------------  ------------ 
Net cash used in operating activities                    569 064   (1 500 858) 
                                                    ------------  ------------ 
 
Cash flows from investing activities 
Purchase of intangible assets                        (1 442 774)     (964 191) 
Purchase of property, plant and equipment            (4 543 884)   (1 990 856) 
                                                    ------------  ------------ 
Net cash used in investing activities                (5 986 658)   (2 955 047) 
                                                    ------------  ------------ 
 
Cash flows from financing activities 
Finance income                                             6 545             - 
Finance costs                                  9       (224 061)      (37 612) 
Lease payments                                20       (213 661)     (128 600) 
Net proceeds from issue of shares             21      12 548 248     2 796 683 
Settlement of convertible loan notes          17     (1 769 945)             - 
Proceeds from borrowings                      17       5 024 727     7 908 028 
Repayment of borrowings                       17     (3 907 086)   (5 378 742) 
                                                    ------------  ------------ 
Net cash generated from financing 
 activities                                           11 464 767     5 159 757 
                                                    ------------  ------------ 
 
Net increase in cash and cash equivalents              6 047 173       703 852 
Cash and cash equivalents at the beginning 
 of the year                                           1 351 200       574 600 
Foreign exchange differences                            (32 994)        72 748 
                                                    ------------  ------------ 
Cash and cash equivalents at the 
 end of the year                              16       7 365 379     1 351 200 
                                                    ============  ============ 
 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the year ended 28 February 2022

   1.     Corporate information and principal activities 

AfriTin Mining Limited ("AfriTin") was incorporated and domiciled in Guernsey on 1 September 2017, and admitted to the AIM market in London on 9 November 2017. The company's registered office is PO Box 282, Oak House, Hirzel Street, St Peter Port, Guernsey GY1 3RH, and it operates from Illovo Edge Office Park, 2nd Floor, Building 3, Corner Harries and Fricker Road, Illovo, Johannesburg, 2116, South Africa.

These financial statements are for the year ended 28 February 2022 and the comparative figures are for the year ended 28 February 2021.

The AfriTin Group comprises AfriTin Mining Limited and its subsidiaries as noted below.

AfriTin Mining Limited ("AML") is an investment holding company and holds 100% of Guernsey subsidiary, Greenhills Resources Limited ("GRL").

GRL is an investment holding company that holds investments in resource-based tin and tantalum exploration companies in Namibia and South Africa. The Namibian subsidiary is AfriTin Mining (Namibia) Pty Limited ("AfriTin Namibia"), in which GRL holds 100% equity interest. The South African subsidiaries are Mokopane Tin Company Pty Limited ("Mokopane") and Pamish Investments 71 Pty Limited ("Pamish 71"), in which GRL holds 100% equity interest.

AfriTin Namibia owns an 85% equity interest in Uis Tin Mining Company Pty Limited ("UTMC"). The minority shareholder in UTMC is The Small Miners of Uis who own 15%.

Mokopane owns a 74% equity interest in Renetype Pty Limited ("Renetype") and a 50% equity interest in Jaxson 641 Pty Limited ("Jaxson").

The minority shareholders in Renetype are African Women Enterprises Investments Pty Limited and Cannosia Trading 62 CC who own 10% and 16% respectively.

The minority shareholder in Jaxson is Lerama Resources Pty Limited who owns a 50% interest in Jaxson. Pamish 71 owns a 74% interest in Zaaiplaats Mining Pty Limited ("Zaaiplaats"). The minority shareholder in Zaaiplaats is Tamiforce Pty Limited who owns 26%.

AML holds 100% of Tantalum Investment Pty Limited, a company holding Namibian exploration licenses EPL5445 and EPL5670 for the exploration of tin, tantalum and associated minerals.

As at 28 February 2022, the AfriTin Group comprised:

 
                                  Equity holding 
                                    and voting         Country 
Company                               rights       of incorporation     Nature of activities 
AfriTin Mining Limited                 N/A            Guernsey            Ultimate holding 
                                                                               company 
                                  --------------  -----------------  -------------------------- 
Greenhills Resources Limited(1)        100%           Guernsey            Holding company 
                                  --------------  -----------------  -------------------------- 
AfriTin Mining Pty Limited(1)          100%         South Africa       Group support services 
                                  --------------  -----------------  -------------------------- 
Tantalum Investment Pty                100%            Namibia 
 Limited(1)                                                          Tin & tantalum exploration 
                                  --------------  -----------------  -------------------------- 
AfriTin Mining (Namibia)               100%            Namibia 
 Pty Limited(2)                                                      Tin & tantalum operations 
                                  --------------  -----------------  -------------------------- 
Uis Tin Mining Company                 85%             Namibia 
 Pty Limited(3)                                                      Tin & tantalum operations 
                                  --------------  -----------------  -------------------------- 
Mokopane Tin Company Pty               100%         South Africa 
 Limited(2)                                                               Holding company 
                                  --------------  -----------------  -------------------------- 
Renetype Pty Limited(4)                74%          South Africa     Tin & tantalum exploration 
                                  --------------  -----------------  -------------------------- 
Jaxson 641 Pty Limited(4)              50%          South Africa     Tin & tantalum exploration 
                                  --------------  -----------------  -------------------------- 
Pamish Investments 71 Pty              100%         South Africa 
 Limited(2)                                                               Holding company 
                                  --------------  -----------------  -------------------------- 
Zaaiplaats Mining Pty Limited(5)       74%          South Africa          Property owning 
                                  --------------  -----------------  -------------------------- 
 

(1) Held directly by AfriTin Mining Limited

(2) Held by Greenhills Resources Limited

(3) Held by AfriTin Mining (Namibia) Pty Limited

(4) Held by Mokopane Tin Company Pty Limited

(5) Held by Pamish Investments 71 Pty Limited

These financial statements are presented in Pound Sterling (GBP) because that is the currency in which the Group has raised funding on the AIM market in the United Kingdom. Furthermore, Pound Sterling (GBP) is the functional currency of the ultimate holding company, AfriTin Mining Limited.

The Group's key subsidiaries, AfriTin Namibia and UTMC, use the Namibian Dollar (N$) as their functional currency. The year-end spot rate used to translate all Namibian Dollar balances was GBP1 = N$20.33 and the average rate for the financial year was GBP1 = N$20.27.

   2.     Significant accounting policies 

Basis of accounting

The Consolidated Financial Statements have been prepared in accordance with UK Adopted International Accounting Standards. The Consolidated Financial Statements also comply with the AIM Rules for Companies, NSX Listing Requirements and the Companies (Guernsey) Law, 2008 and show a true and fair view.

The significant accounting policies applied in preparing these Consolidated Financial Statements are set out below. These policies have been consistently applied throughout the period. The Consolidated Financial Statements have been prepared under the historical cost convention except as where stated.

Going concern

The Group closely monitors and manages its liquidity risk and day to day working capital requirements. Cash forecasts are regularly produced, considering the global logistical challenges around sales to ensure sufficient cash within the Group to meet its obligations. The Group runs sensitivities for different scenarios, including but not limited to changes in commodity prices and exchange rates. The Group also routinely monitors the covenants associated with the borrowing facilities and proactively engages with Standard Bank, the lender, where there is any risk. Based on the year to date production profile and latest forecast, the group will be able to meet its covenant obligations for the testing period February 2023. For the purpose of assessing going concern, the directors have prepared forecasts to December 2023.

The main sensitivities considered as part of management's going concern assessment are production, tin prices, exchange rates and committed expansion capital. The Group's ability to achieve its future production profile is predicated on the successful completion of the Uis phase 1 expansion which will increase the production capability up to 1,200 tonnes of tin concentrate per annum.

Based on the forecasts, additional funding is likely to be required within the next 12 months for the purpose of working capital and capital projects. The Group believes it has several options available to it, including but not limited to, use of the overdraft facility, restructuring of the debt, additional debt or equity, cost reduction strategies as well as potential offtake arrangements. Management is already at an advanced stage of securing bank funding and other finance for the next 12 months, with a primary allocation to capital expansion projects and by-product pilot facilities. Accordingly, the Directors continue to adopt the going concern basis in preparing the consolidated financial information.

Notwithstanding the above, these circumstances indicate that a material uncertainty exists that may cast significant doubt on the Group's ability to continue as a going concern and, therefore, that the Group may be unable to realise its assets or settle its liabilities in the ordinary course of business. As a result of their review, and despite the aforementioned material uncertainty, the Directors have confidence in the Group's forecasts and have a reasonable expectation that the Group will continue in operational existence for the going concern assessment period and have therefore used the going concern basis in preparing these consolidated financial statements.

Basis of consolidation

Subsidiaries

Subsidiaries are all entities (including structured entities) over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date that control ceases.

Inter-company transactions, balances and unrealised gains/losses on transactions between Group companies are eliminated. When necessary, amounts reported by subsidiaries have been adjusted to conform with the Group's accounting policies.

Non-controlling interests

Non-controlling interests in subsidiaries are identified separately from the Group's equity therein. Those interests of non-controlling shareholders that present ownership interests entitling their holders to a proportionate share of the net assets upon liquidation are initially measured at fair value. Subsequent to acquisition, the carrying amount of non-controlling interests is the amount of those interests at initial recognition plus the non-controlling interests' share of subsequent changes in equity. Total comprehensive income is attributed to non-controlling interests even if this results in the non-controlling interests having a deficit balance.

Segment reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker. The chief operating decision-maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the management steering committee that makes strategic decisions.

Foreign currencies

Functional and presentational currency

The individual financial statements of each Group company are prepared in the currency of the primary economic environment in which that company operates (its functional currency). For the purpose of the consolidated financial statements, the results and financial position of each group company are expressed in Pound Sterling, which is the functional currency of the Company, and the presentation currency for the consolidated financial statements.

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 date where items are re-measured. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the income statement, except when deferred in other comprehensive income as qualifying cash flow hedges and qualifying net investment hedges.

Group companies

The results and financial position of all the Group entities (none of which has the currency of a hyper-inflationary economy) that have a financial currency different from the presentation currency are translated into the presentation currency as follows:

i) assets and liabilities for each balance sheet presented are translated at the closing rate at the date of that balance sheet;

ii) income and expenses for each income statement are translated at average exchange rates, unless the 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 rate on the dates of the transactions; and

   iii)    all resulting exchange differences are recognised in other comprehensive income. 

Revenue recognition

IFRS 15 "Revenue from Contracts with Customers" establishes a comprehensive framework for determining whether, how much, and when revenue is recognised. The core principle is that an entity recognises revenue to depict the transfer of promised goods and services to the customer of an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Group generates revenue from its primary activity, the sale of tin concentrate, and it continued to generate immaterial revenue from the sale of sand.

The Group produces and sells tin concentrate from its Uis Tin Mine in Namibia. Once concentrate has been produced at the Uis plant, it is sampled, bagged and loaded into containers for transportation to the port in Walvis Bay for shipment.

The company currently has an offtake agreement with its customer, Thailand Smelting and Refining Company ("Thaisarco"), which was signed on 1 August 2019. This contract was renewed on 1 December 2020 for a further 3 years. As per the contract, Thaisarco pays AfriTin on the basis of actual tin content in the concentrate per Thaisarco's analysis, at the London Metal Exchange price less treatment charges, unit deductions and impurity charges.

The Group can elect for the sale of each shipment to occur under the following terms:

Option 1: Standard provisional payment

Thaisarco shall pay 90% provisional payment on the basis of actual tin content as per their own analysis. Payment is to be made within 10 working days after the arrival of concentrate at Thaisarco's works. Title shall pass to Thaisarco when the concentrate arrives at the Songkhla Port in Thailand.

Option 2: Provisional payment option against original bill of lading

Thaisarco shall pay 90% provisional payment on the basis of provisional tin content per UTMC's analysis. The provisional payment shall be done against presentation of a provisional invoice and an original bill of lading. Title shall pass to Thaisarco when UTMC receives the 90% provisional payment.

Option 3: Provisional payment option against warehouse holding certificate

Thaisarco shall pay 70% provisional payment on the basis of provisional tin content per UTMC's analysis. The provisional payment shall be done against presentation of a provisional invoice and an original warehouse holding certificate. Thaisarco shall pay an additional 20% provisional payment upon presentation of the original bill of lading. Title shall pass to Thaisarco when UTMC receives the 70% provisional payment.

During the financial year, the Group concluded sales under Option 3.

Revenue is recognised at a point in time when title and control of the goods has transferred to the customer, which is when the concentrate arrives at Songkhla Port in Thailand under Option 1 or when provisional payment is received by UTMC under Option 2 and Option 3. There is limited judgement needed to identify the point at which control passes: once physical delivery of the products to the agreed location has occurred, the Group no longer has physical possession of the products. At this point, the Group will have a present right to payment and retains none of the significant risks and rewards of the goods in question.

Pricing for the provisional payment is determined by the published tin price on the date that title and control passes. Pricing for the final payment shall be declared within 30 market days after arrival at Thaisarco's works. The lower of the cash price and the 3-month forward-looking price is used in these calculations.

Variable consideration relating to final assay results is constrained in estimating revenue unless it is highly probable that there will not be a future reversal in the amount of revenue recognised when the final assay has been determined.

Revenue from the sale of sand is recognised at the point in time when control of the goods has transferred to the customer, which is when the sand leaves the Group's premises. At this point, the Group will have a present right to payment and retains none of the significant risks and rewards of the goods in question.

Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

The tax charge is based on taxable profit for the period. The Group's liability for current tax is calculated by using tax rates that have been enacted or substantively enacted by the reporting date.

Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amount of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the "balance sheet liability" method.

Deferred tax liabilities are recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Deferred tax is calculated at the tax rates that are expected to apply to the year when the asset is realised or the liability is settled based upon rates enacted and substantively enacted at the reporting date. Deferred tax is charged or credited to profit or loss, except when it relates to items credited or charged to other comprehensive income, in which case the deferred tax is also dealt with in other comprehensive income.

Intangible exploration and evaluation assets

All costs associated with mineral exploration and evaluation are capitalised as intangible exploration and evaluation assets and subsequently measured at cost. These include the costs of: acquiring prospecting licenses; mineral production licenses and annual license fees; rights to explore; topographical, geological, geochemical and geophysical studies; and exploratory drilling, trenching, sampling and other activities to evaluate the technical feasibility and commercial viability of extracting a mineral resource.

If an exploration project is successful, the related expenditures will be transferred at cost to property, plant and equipment and amortised over the estimated life of the commercial ore reserves on a unit of production basis (with this charge being taken through profit or loss). Where capitalised costs relate to both development projects and exploration projects, the Group reclassifies a portion of the costs which are considered attributable to near-term production based on a percentage of the ore resource expected to be mined in the relevant phase. Where a project does not lead to the discovery of commercially viable quantities of mineral resources and is relinquished, abandoned, or is considered to be of no further commercial value to the Group, the related costs are recognised in the income statement.

The recoverability of deferred exploration costs is dependent upon the discovery of economically viable ore reserves, the ability of the Group to obtain necessary financing to complete the development of ore reserves and future profitable production or proceeds from the extraction or disposal thereof.

Impairment of exploration and evaluation assets

Intangible exploration and evaluation assets are reviewed regularly for indicators of impairment following the guidance in IFRS 6 "Exploration for and Evaluation of Mineral Resources" and tested for impairment where such indicators exist.

In accordance with IFRS 6, the Group considers the following facts and circumstances in their assessment of whether the Group's exploration assets may be impaired:

-- whether the period for which the Group has the right to explore in a specific area has expired during the period or will expire in the near future, and is not expected to be renewed; or

-- whether substantive expenditure on further exploration for and evaluation of mineral resources in a specific area is neither budgeted for nor planned for; or

-- whether exploration for and evaluation of mineral resources in a specific area have not led to the discovery of commercially viable deposits and the Group has decided to discontinue such activities in the specific area; or

-- whether sufficient data exists to indicate that although a development in a specific area is likely to proceed, the carrying amount of the exploration and evaluation assets is unlikely to be recovered in full from successful development or by sale.

If any such facts or circumstances are noted, the Group, as a next step, performs an impairment test in accordance with the provisions of IAS 36 "Impairment of Assets". In such circumstances, the aggregate carrying value of the mining exploration and evaluation assets is compared to the expected recoverable amount of the cash-generating unit. The recoverable amount is the higher of value in use and the fair value less costs to sell.

Share capital and reserves

   i)             W a rrant reserve 

The warrants issued by the Company are recorded at fair value on initial recognition net of transaction costs. The fair value of warrants granted is recognised as an expense or as share issue costs based on their nature, with a corresponding increase in equity. The fair value of the warrants granted is measured using the Black Scholes valuation model, taking into account the terms and conditions under which the options were granted. The amount recognised as an expense is adjusted to reflect the actual number of warrants that vest.

   ii)            Convertible loan note reserve 

The proceeds received on issue of the Group's convertible loan notes are allocated into their liability and equity components based on the terms of the agreement.

The Group takes into account:

   --      whether there is a contractual obligation to settle in cash; 
   --      whether there is a contractual obligation to issue a variable number of shares; and 
   --      whether the instrument's book value is variable. 

Where none of the above criteria are met, the convertible loan notes are allocated as equity.

   iii)           Share-based payment reserve 

Where equity-settled share options are awarded to directors or employees, the fair value of the options at the date of grant is charged to the statement of comprehensive income over the vesting period. Non-market vesting conditions are taken into account by adjusting the number of equity instruments expected to vest at each reporting date so that, ultimately, the cumulative amount recognised over the vesting period is based on the number of options that eventually vest. Non-vesting conditions and market vesting conditions are factored into the fair value of the options granted. As long as all other vesting conditions are satisfied, a charge is made irrespective of whether the market vesting conditions are satisfied. The cumulative expense is not adjusted for failure to achieve a market vesting condition or where a non-vesting condition is not satisfied.

Where the terms and conditions of options are modified before they vest, the increase in the fair value of the options, measured immediately before and after the modification, is also charged to the statement of comprehensive income over the remaining vesting period.

Where equity instruments are granted to persons other than employees, the statement of comprehensive income is charged with the fair value of goods and services received.

Property, plant and equipment

Property, plant and equipment is stated at historical cost less accumulated depreciation.

Depreciation is provided at rates calculated to write off the cost less the estimated residual value of each asset over its expected useful economic life. The applicable rates are:

-- The mining assets are depreciated using the units of production method from the point that commercial production was achieved. This reflects the production activity in the period as a proportion of the total mining reserve. Where the units of production method is used, the assets are depreciated based on a rate determined by the tonnes of ore processed divided by the estimate of the mineral reserve.

-- Short-lived assets which are used in the mining and processing plant are depreciated over a period of between one and ten years.

   --      Right-of-use assets are depreciated over the period of the lease contract. 
   --      Computer equipment is depreciated over three years. 
   --      Furniture is depreciated over five years. 
   --      Vehicles are depreciated over four years. 
   --      Mobile equipment is depreciated over ten years. 

Land and mining assets under construction are not depreciated.

The estimated useful lives, residual values and depreciation methods are reviewed at each year end and adjusted if necessary.

Gains or losses on disposal are included in profit or loss.

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.

Mining asset - stripping

In open pit mining operations, it is necessary to incur costs to remove overburden and other mine waste materials in order to access the ore body ("stripping costs"). During the development of a mine, stripping costs are capitalised and included in the carrying amount of the related mining property. During the production phase of a mine, stripping costs will be recognised as an asset only if the following conditions are met:

-- It is probable that the future economic benefit (improved access to the ore body) associated with the stripping activity will flow to the entity;

-- The entity can identify the component of the ore body (mining phases) for which access has been improved; and

-- The costs relating to the stripping activity associated with that component can be measured reliably.

Stripping costs incurred and capitalised during the development and production phase are depleted using the unit-of-production method over the reserves and, in some cases, a portion of resources of the area that directly benefit from the specific stripping activity. Costs incurred for regular waste removal that do not give rise to future economic benefits are considered as costs of sales and included in operating expenses.

Right-of-use asset

At inception of a contract, the Group assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset, for a period of time, in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Group assesses whether:

-- the contract involves the use of an identified asset. The asset may be specified explicitly or implicitly and should be physically distinct or represent substantially all of the capacity of a physically distinct asset. If the supplier has a substantive substitution right, then the asset is not identified;

-- the Group has the right to obtain substantially all of the economic benefits from use of the asset throughout the period of use; and

-- the Group has the right to direct the use of the asset. The Group has the right when it has the decision-making rights that are most relevant to changing how and for what purposes the asset is used. In rare cases where the decision about how and for what purposes the assets is used is predetermined, the Group has the right to direct the use of the asset if either:

   -       the Group has the right to operate the asset; or 

- the Group designed the asset in a way that predetermines how and for what purposes it will be used.

At inception or on reassessment of a contract that contains a lease component, the Group allocates the consideration in the contract to each lease component on the basis of its relative stand-alone price.

The right-of-use asset is initially measured at the present value of the remaining lease payments, discounted using the incremental borrowing rate.

The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the end of the lease term. In addition, the right-of-use asset is annually assessed for impairment and will be adjusted for certain re-measurements of the lease liability.

Impairment of property, plant and equipment

At each statement of financial position date, the Group reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss, if any. Where the asset does not generate cash flows that are independent from other assets, the Group estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Where there has been a change in economic conditions that indicate a possible impairment in a cash-generating unit, the recoverability of the net book value relating to that unit is assessed by comparison with the estimated discounted future cash flows based on management's expectations of future commodity prices and future costs.

The recoverable amount is determined on the fair value less cost to develop basis. In assessing the recoverable amount, the expected future post-tax cash flows from the asset are discounted to their present value using a post-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. The Life of Mine ("LoM") plan is the approved management plan at the reporting date for ore extraction and its associated capital expenditure. The capital expenditure included in the impairment model does not include capital expenditure to enhance the asset performance outside of the existing LoM plan. The ore tonnes included in the LoM plan are those as per the Reserve Statement, which management considers economically viable.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised as an expense immediately, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease to the extent that it reverses gains previously recognised in other comprehensive income.

Where conditions giving rise to impairment subsequently reverse, the effect of the impairment charge is also reversed as a credit to the income statement, net of any depreciation that would have been charged since the impairment.

Inventories

Inventory consists of tin concentrate on hand, the run of mine stockpile, and consumable items.

The tin concentrate is carried at the lower of cost or net realisable value. The cost of the concentrate includes direct materials, direct labour, depreciation, and overhead costs relating to processing and engineering activities. Net realisable value is the estimated selling price net of any estimated selling costs in the ordinary course of business.

The run of mine stockpile is carried at the lower of cost or net realisable value. The cost of the stockpile includes direct materials, direct labour, depreciation, and overhead costs relating to mining activities. Net realisable value is the estimated selling price net of necessary processing costs and any estimated selling costs in the ordinary course of business.

Consumables are valued at the lower of cost (determined on the weighted average basis) and net realisable value. Cost comprises all costs of purchase, costs of conversion, and other costs incurred in bringing the inventories to their present location and condition. Replacement cost is used as the best available measure of net realisable value.

Financial instruments

Financial instruments are recognised in the Group's statement of financial position when the Group becomes a party to the contractual provisions of the instrument.

Financial assets

The Company classifies its financial assets in the following measurement categories:

   --      those to be measured subsequently at amortised cost, and 
   --      those to be measured subsequently at fair value through profit or loss. 

The classification depends on the Company's business model for managing the financial assets and the contractual terms of the cash flows.

Financial assets are classified as at amortised cost only if the asset is held to collect the contractual cash flows and the contractual terms of the asset give rise to cash flows that are solely payments of principal and interest. At subsequent reporting dates, financial assets at amortised cost are measured at amortised cost less any impairment losses.

For assets measured at fair value, gains and losses will be recorded in profit or loss.

Impairment of financial assets

The Group assesses on a forward-looking basis the expected credit losses, defined as the difference between the contractual cash flows and the cash flows that are expected to be received, associated with its assets carried at amortised cost. The impairment methodology applied depends on whether there has been a significant increase in credit risk. For trade receivables only, the simplified approach permitted by IFRS 9 "Financial Instruments" is applied, which requires expected lifetime losses to be recognised from initial recognition of the receivables. Losses are recognised in the income statement. When a subsequent event causes the amount of impairment loss to decrease, the decrease in impairment loss is reversed through the income statement.

To measure the expected credit losses, trade receivables have been grouped based on shared credit risk characteristics and the days past due.

The expected loss rates are based on the payment profiles of sales over a period of 24 months before 28 February 2022 and the corresponding historical credit losses experienced within this period. The historical loss rates are adjusted to reflect current and forward-looking information on macroeconomic factors affecting the ability of our customer to settle the receivables balance.

Trade and other receivables

Trade and other receivables are initially recognised at the fair value of the consideration receivable less any impairment.

Trade and other receivables are subsequently measured at amortised cost or at fair value through profit or loss.

Under its offtake arrangement, the Group receives a provisional payment upon satisfaction of its performance obligations based on the tin price at that date. This occurs prior to the final price determination and the Group then subsequently receives the difference between the final price and quantity and the provisional payment. As a result of the pricing structure, the instrument is classified at fair value through profit or loss and changes in fair value are recorded as other revenue.

Trade and other receivables are classified as a current asset as these are expected to be settled within a year.

Cash and cash equivalents

Cash and cash equivalents comprise cash at hand and deposits on a term of not greater than three months.

Financial liabilities

Financial liabilities include trade and other payables, borrowings, and other longer-term financing, classified into one of the following categories:

-- Fair value through profit or loss: The liabilities are carried in the statement of financial position at fair value with changes in fair value recognised in the income statement. The Group currently has no financial liabilities carried at fair value through profit or loss.

   --      Financial liabilities carried at amortised cost 

Trade and other payables

Trade and other payables are initially recognised at fair value and are subsequently measured at amortised cost, calculated using the effective interest rate method.

Borrowings

Interest-bearing debt is initially recorded at fair value less transaction costs, and is subsequently measured at amortised cost, calculated using the effective interest rate method.

Borrowing costs are expensed as incurred except where they relate to the financing of construction or development of qualifying assets in which case they are capitalised up to the date when the qualifying asset is ready for its intended use.

Derecognition

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily derecognised when:

   --      The rights to receive cash flows from the asset have expired; or 

-- The company has transferred its right to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party, and either

- The company has transferred substantially all the risks and rewards of the asset, or

- The company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

A financial liability (in whole or in part) is derecognised when the Group has extinguished its contractual obligations, it expires, or it is cancelled.

Any gain or loss on derecognition is taken to the profit or loss.

Rehabilitation provision

The net present value of estimated future rehabilitation costs is provided for in the financial statements and capitalised within property, plant and equipment on initial recognition. Rehabilitation will generally occur on or after closure of a mine.

Initial recognition is at the time that the construction or disturbance occurs, and thereafter as and when additional construction or disturbances take place. The estimates are reviewed annually to take into account the effects of inflation and changes in the estimated cost of the rehabilitation works, and are discounted using rates that reflect the time value of money. Annual increases in the provision due to the unwinding of the discount are recognised in the statement of comprehensive income as a finance cost. The present value of additional disturbances and changes in the estimate of the rehabilitation liability are recorded to mining assets against an increase/decrease in the rehabilitation provision.

The rehabilitation asset is amortised over the life of the mine once commercial production commences. Rehabilitation projects undertaken, included in the estimates, are charged to the provision as incurred. Environmental liabilities, other than rehabilitation costs, which relate to liabilities arising from specific events, are expensed when they are known, probable and may be reasonably estimated.

Lease liability

The lease liability is initially measured at the present value of the remaining lease payments, discounted using the interest rate implicit in the lease. The liability is subsequently measured at amortised cost using the effective interest rate method. Lease payments are apportioned between the finance charges and reduction of the lease liability using the incremental borrowing rate to achieve a constant rate of interest on the remaining balance of the liability.

Critical accounting estimates and judgements

In the application of the Group's accounting policies, the Directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. In particular, information about significant areas of estimation uncertainty considered by management in preparing the financial statements is provided below.

Estimates and judgements are continually evaluated. Revisions to accounting estimates are recognised in the year in which the estimates are revised if the revision affects only that year, or in the year of revision and in future years if the revision affects both current and future years.

   i)      Going concern and liquidity 

Significant estimates were required in forecasting cash flows used in the assessment of going concern including tin and tantalum prices, the levels of production, operating costs, and capital expenditure requirements. For further details, refer to going concern considerations laid out earlier in Note 2.

   ii)     Decommissioning and rehabilitation obligations 

Estimating the future costs of environmental and rehabilitation obligations is complex and requires management to make estimates and judgements, as most of the obligations will be fulfilled in the future and contracts and laws are often not clear regarding what is required. The resulting provisions (see Note 19) are further influenced by changing technologies, and by political, environmental, safety, business, and statutory considerations.

The Group's rehabilitation provision is based on the net present value of management's best estimates of future rehabilitation costs. Judgement is required in establishing the disturbance and associated rehabilitation costs at period end, timing of costs, discount rates, and inflation. In forming estimates of the cost of rehabilitation which are risk adjusted, the Group assessed the Environmental Management Plan and reports provided by internal and external experts. Actual costs incurred in future periods could differ materially from the estimates, and changes to environmental laws and regulations, life of mine estimates, inflation rates, and discount rates could affect the carrying amount of the provision.

The carrying amount of the rehabilitation obligations for the Group at 28 February 2022 was GBP295 151 (2021: GBP180 917). In determining the amount attributable to the rehabilitation liability, management used a discount rate of 10% (2021: 12.8%), an inflation rate of 5% (2021: 6%) and an estimated mining period of 17 years (2021: 18 years), being the Phase 1 expansion life of mine. A 1% increase or decrease in the inflation rate used would result in a GBP52 848 difference in the liability. A 2% increase or decrease in the discount rate used would result in a GBP79 345 difference in the liability.

   iii)    Impairment indicator assessment for exploration and evaluation assets 

Determining whether an exploration and evaluation asset is impaired requires an assessment of whether there are any indicators of impairment, including specific impairment indicators prescribed in IFRS 6: Exploration for and Evaluation of Mineral Resources. If there is any indication of potential impairment, an impairment test is required based on value in use of the asset. The valuation of intangible exploration assets is dependent upon the discovery of economically recoverable deposits which, in turn, is dependent on future tin prices, future capital expenditures, environmental and regulatory restrictions, and the successful renewal of licences. The Group considers the South African exploration and evaluation assets to be non-core as it continues to primarily focus on developing its Namibian assets. Accordingly, the capitalised exploration and evaluation expenditure relating to the South African assets was impaired to nil in the prior year on the basis that the Group did not intend on incurring any further expenditure on its South African licences. The directors have concluded that there are no indications of impairment in respect of the carrying value of Namibian intangible assets at 28 February 2022 based on planned future development of the Namibian projects, and current and forecast tin prices. Exploration and evaluation assets are disclosed fully in Note 12.

   iv)   Impairment assessment for property, plant and equipment 

Management have reviewed the Uis mine for indicators of impairment and have considered, among other factors, the operations to date at the Uis Tin Mine, the Phase 1 Stage II expansion of the Uis operations, forecast commodity prices, and market capitalisation of the Group. In undertaking the indicator review, management have also reviewed the underlying LoM valuation model for Uis and have concluded that no indicators of impairment have been noted at year end. The LoM valuation model is on a fair value less cost to develop basis and includes assessments of different scenarios associated with capital development and expansion opportunities.

The forecasts required estimates regarding forecast tin prices, ore resources and production, and operating and capital costs. The discounted cash flows use a discount rate of 8% post tax nominal. Under the base case forecast using a forecast tin price of $35 940 falling to $31 339 by 2025, the forecast indicates headroom as at 28 February 2022.

As an additional test, management performed certain sensitivity calculations. These included raising the discount rate to 12% post tax nominal, lowering the forecast tin prices by 5%, lowering plant recovery by 5% and increasing operating costs by 10%. In each of these circumstances, the forecast indicated headroom as at 28 February 2022.

   v)    Depreciation 

Judgement is applied in making assumptions about the depreciation charge for mining assets when using the unit-of-production method in estimating the ore tonnes held in reserves. The relevant reserves are those included in the current approved LoM plan which relates to the Phase 1 expansion. Judgement is also applied when assessing the estimated useful life of individual assets and residual values. The assumptions are reviewed at least annually by management and the judgement is based on consideration of the LoM plan, as well as the nature of the assets. The reserve assumptions included in the LoM plan are evaluated by management.

   vi)   Capitalisation and depreciation of waste stripping 

The Group has elected to capitalise the costs of waste stripping activities as these are necessary to allow improved access to the ore and, therefore, will result in future economic benefits. The costs of drilling, blasting and load & haul of waste material is capitalised until such time that the underlying ore is used in production. These costs are then expensed on a proportional basis. The capitalised costs are included in the mining asset in property, plant & equipment and are expensed back into the statement of comprehensive income as depreciation. Capitalisation of waste stripping requires the Group to make judgements and estimates in determining the amounts to be capitalised. These judgements and estimates include, amongst others, the expected life of mine stripping ratio for each separate open pit, the determination of what defines separate pits, and the expected volumes to be extracted from each component of a pit for which the stripping asset is depreciated.

vii) Determination of ore reserves

The estimation of ore reserves primarily impacts the depreciation charge of evaluated mining assets, which are depreciated based on the quantity of ore reserves. Reserve volumes are also used in calculating whether an impairment charge should be recorded where an impairment indicator exists.

The Group estimates its ore reserves and mineral resources based on information, compiled by appropriately qualified persons, relating to geological and technical data on the size, depth, shape, and grade of the ore body and related to suitable production techniques and recovery rates. The estimate of recoverable reserves is based on factors such as tin prices, future capital requirements and production costs, along with geological assumptions and judgements made in estimating the size and grade of the ore body.

There are numerous uncertainties inherent in estimating ore reserves and mineral resources. Consequently, assumptions that are valid at the time of estimation may change significantly if or when new information becomes available.

viii) Valuation of inventories

Judgement is applied in making assumptions about the value of inventories and inventory stockpiles, including tin prices, plant recoveries and processing costs, to determine the extent to which the Group values inventory and inventory stockpiles. The Group uses forecast tin prices to determine the net realisable value of the ROM stockpile and the tin concentrate inventory on hand at year end. Inventory stockpiles are measured using actual mining and processing costs.

   ix)   Determining the lease term 

In determining the lease term, management considers all facts and circumstances that create an economic incentive to exercise, or not to exercise, an extension option. Extension options are only included in the lease term where the company is reasonably certain that it will extend or will not terminate the lease when the lease expires. For all leases, the most relevant factors include:

   --      Historical lease durations; 
   --      Costs incurred in replacing the leased asset; 
   --      Possible business disruption due to replacing the leased asset; 

-- Likelihood of extension of the lease - if there are significant penalties to terminate, then it's reasonably certain that the Group will extend.

The lease term is reassessed on an ongoing basis, especially when the option to extend becomes exercisable, or on occurrence of a significant event or a significant change in circumstances which affects this assessment, and that is within the control of the Group.

   x)    Determining the incremental borrowing rate to measure lease liabilities 

The interest rate implicit in leases is not available, therefore the Group uses the relevant incremental borrowing rate (IBR) to measure its lease liabilities. The IBR is estimated to be the interest rate that the Group would pay to borrow:

   --      over a similar term; 
   --      with similar security; 
   --      the amount necessary to obtain an asset of a similar value to the right of use asset; and 
   --      in a similar economic environment. 

The IBR, therefore, is considered to be the best estimate of the incremental rate and requires management's judgement as there are no observable rates available.

xi) Determining the fair value of trade receivables classified at fair value through profit or loss

The consideration receivable in respect of certain sales for which performance obligations have been satisfied at year end and for which the Group has received prepayment under the terms of the offtake agreement, remain subject to pricing adjustments with reference to market prices at the date of finalisation. Under the Group's accounting policies, the fair value of the consideration is determined, and the remaining receivable is adjusted to reflect fair value. Management estimated the forward price based on the LME 3-month tin price that is expected when the open shipments will be finalised. As at 28 February 2022 the Group recognised a receivable at fair value through profit or loss of GBP812 594 (2021: GBP531 583).

   3.     Adoption of new and revised standards 

A number of new and amended standards and interpretations issued by IASB have become effective for the first time for financial periods beginning on (or after) 1 March 2021 and have been applied by the Group in these financial statements. None of these new and amended standards and interpretations had a significant effect on the Group because they are either not relevant to the Group's activities or require accounting which is consistent with the Group's current accounting policies.

Accounting standards and interpretations not applied

There are a number of standards, amendments to standards, and interpretations which have been issued by the IASB that are effective in future accounting periods and which have not been adopted early.

   4.     Segmental reporting 

The reporting segments are identified by the management steering committee (who are considered to be the chief operating decision-makers) by the way that the Group's operations are organised. As at 28 February 2022, the Group operated within two operating segments: tin exploration and mining activities in Namibia and South Africa.

Segment results

The following is an analysis of the Group's results by reportable segment.

 
                            South Africa     Namibia    Total 
                                     GBP         GBP      GBP 
Year ended 28 February 
 2022 
Results 
                                              13 580   13 615 
Revenue                           34 444         600      045 
                                             (10 693  (10 724 
Associated costs                (30 843)        637)     480) 
                                               2 886    2 890 
Segmental profit                   3 601         963      564 
                            ============  ==========  ======= 
 
Year ended 28 February 
 2021 
Results 
                                               4 950    4 985 
Revenue                           34 863         244      107 
                                              (5 715   (5 724 
Associated costs                 (8 786)        954)     740) 
Impairment of exploration                              (3 069 
 licence                     (3 069 232)           -     232) 
                            ------------  ----------  ------- 
                                  (3 043               (3 808 
Segmental loss                      155)   (765 710)     865) 
                            ============  ==========  ======= 
 

The reconciliation of segmental gross loss to the Group's loss before tax is as follows:

 
                       Year ended    Year ended 
                      28 February   28 February 
                             2022          2021 
                              GBP           GBP 
Segmental profit 
 / (loss)               2 890 564   (3 808 865) 
Unallocated costs     (2 252 700)   (1 802 718) 
Other income               61 755             - 
Finance income              6 545             - 
Finance costs           (316 365)     (184 300) 
                     ------------  ------------ 
Profit / (loss) 
 before tax               389 798   (5 795 883) 
                     ============  ============ 
 

Unallocated costs are mainly comprised of corporate overheads and costs associated with being listed in London.

Other segmental information

 
                                  South Africa    Namibia      Total 
                                           GBP        GBP        GBP 
As at 28 February 2022 
Intangible assets - exploration 
 and evaluation                         12 565  5 043 165  5 055 730 
Other reportable segmental                         24 119     24 190 
 assets                                 70 564        470        033 
Other reportable segmental                         (4 038     (4 101 
 liabilities                          (63 006)       840)       846) 
Unallocated net liabilities                  -          -  2 317 939 
                                  ------------  ---------  --------- 
                                                   25 123     27 461 
Total consolidated net assets           20 122        795        857 
                                  ============  =========  ========= 
 
As at 28 February 2021 
Intangible assets - exploration 
 and evaluation                         11 309  5 229 152  5 240 461 
Other reportable segmental                         15 494     15 571 
 assets                                 76 460        907        367 
Other reportable segmental                         (1 651     (1 713 
 liabilities                          (62 302)       016)       318) 
                                                              (2 608 
Unallocated net liabilities                  -          -       263) 
                                  ------------  ---------  --------- 
                                                   19 073     16 490 
Total consolidated net assets           25 467        043        247 
                                  ============  =========  ========= 
 

Unallocated net assets/liabilities are mainly comprised of cash and cash equivalents and the working capital facility which are managed at a corporate level.

   5.     Revenue 
 
                                  Year ended    Year ended 
                                 28 February   28 February 
                                        2022          2021 
                                         GBP           GBP 
Revenue from the sale of 
 tin                              13 717 620     4 744 609 
Revenue from the sale of 
 sand                                 34 444        34 863 
Total revenue from customers      13 752 064     4 779 472 
 
Other revenue - change in 
 fair value of 
 customer contract                 (137 019)       205 635 
Total revenue                     13 615 045     4 985 107 
                                ============  ============ 
 

The revenue from the sale of tin and sand is recognised at the point in time at which control transfers. Refer to Note 2 for further details.

Other revenue relates to the change in the fair value of amounts receivable under the offtake agreement between the date of initial recognition and the period end resulting from forecast market prices at the estimated final pricing date. Refer to Note 2 for details of trade receivables recorded at fair value through profit or loss.

   6.     Cost of sales 
 
                          Year ended    Year ended 
                         28 February   28 February 
                                2022          2021 
                                 GBP           GBP 
Costs of production        8 057 083     4 531 697 
Smelter charges              748 892       287 319 
Logistics costs              126 086        48 578 
Government royalties         370 457       120 102 
                           9 302 518     4 987 696 
                        ============  ============ 
 
   7.     Administrative expenses 

The profit / (loss) for the year has been arrived at after charging:

 
                                 Year ended    Year ended 
                                28 February   28 February 
                                       2022          2021 
                                        GBP           GBP 
Staff costs                       1 269 882     1 201 489 
Depreciation of property, 
 plant & equipment                  221 948       275 987 
Professional fees                   621 379       127 902 
Travelling expenses                  96 956        44 793 
Uis administration expenses         660 476       361 509 
Auditor's remuneration               95 000        69 250 
Other costs                         709 022       458 832 
                                  3 674 662     2 539 762 
                               ============  ============ 
 

Other costs are mainly comprised of corporate overheads necessary to run the South African head office and the costs associated with being listed in London.

   8.     Staff costs 
 
                                              Year ended    Year ended 
                                             28 February   28 February 
                                                    2020          2021 
                                                     GBP           GBP 
Staff costs capitalised under property, 
 plant and 
 equipment                                       607 622     1 094 729 
Staff costs capitalised under intangible 
 assets                                          171 793       261 844 
Staff costs recognised as administrative 
 expenses                                      1 182 228       666 746 
Staff costs included in cost of 
 sales                                         1 317 548       285 216 
Share-based payment charge capitalised 
 under property, 
 plant and equipment                              18 892        45 820 
Share-based payment charge capitalised 
 under 
 intangible assets                                 6 076        18 204 
Share-based payment charge recognised 
 as administrative expenses                       80 253       207 407 
Share issue charge                                 7 401       327 336 
                                               3 391 813     2 907 301 
                                            ============  ============ 
 

Key management personnel have been identified as the Board of Directors, Frans van Daalen (Chief Operating Officer of the Group) and Robert Sewell (Chief Financial Officer of the Group). Details of key management remuneration are shown in Note 27.

The average number of staff during the period was 165 (2021: 108) with an average total cost per employee for the year of GBP20 510 (2021: GBP26 862).

Emoluments of GBP183 712 including GBP13 258 of share options and shares to be issued (2021: GBP289 104 including GBP172 323 of share options and shares to be issued) were paid in respect of the highest-paid director during the year.

   9.     Finance cost 
 
                                              Year ended    Year ended 
                                             28 February   28 February 
                                                    2022          2021 
                                                     GBP           GBP 
Interest on lease liability                       42 630        39 691 
Interest on environmental rehabilitation 
 liability                                        12 080         7 593 
Bank interest                                    102 655        31 696 
Interest on loan notes                            68 836        49 863 
Amortisation of warrant charge                    37 594        49 541 
Other interest                                    52 570         5 916 
                                            ------------  ------------ 
                                                 316 365       184 300 
                                            ============  ============ 
 

10. Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

 
                                               Year ended    Year ended 
                                              28 February   28 February 
                                                     2022          2021 
Factors affecting tax for the year:                   GBP           GBP 
The tax assessed for the year at 
 the Guernsey corporation 
 tax charge rate of 0%, as explained 
 below: 
Profit / (loss) before taxation                   389 798   (5 795 883) 
                                             ------------  ------------ 
 
Profit/ (loss) before taxation multiplied               -             - 
 by the Guernsey corporation 
 tax charge rate of 0% 
Effects of: 
Differences in tax rates (overseas 
 jurisdictions)                                 (525 598)     (549 615) 
Tax losses carried forward                        525 598       549 615 
Movement in deferred tax                        (864 199)             - 
                                             ------------  ------------ 
Tax for the year                                (864 199)             - 
                                             ============  ============ 
 

Accumulated losses in the subsidiary undertakings for which there is an unrecognised deferred tax asset are GBP4 290 665 (2021: GBP3 244 873).

11. Loss per share from continuing operations

The calculation of a basic loss per share of 0.08 pence (2021: loss per share of 0.76 pence), is calculated using the total loss for the year attributable to the owners of the Company of GBP815 645 (2021: loss of GBP5 694 962) and the weighted average number of shares in issue during the period of 1 064 247 295 (2021: 749 085 933).

Due to the loss for the year, the diluted loss per share is the same as the basic loss per share. The number of potentially dilutive ordinary shares, in respect of share options, warrants and shares to be issued as at 28 February 2022 is 76 261 762 (2021: 86 882 728). These potentially dilutive ordinary shares may have a dilutive effect on future earnings per share.

12. Intangible assets

 
                                               Exploration 
                                            and evaluation   Computer 
                                                    assets   software      Total 
Cost                                                   GBP        GBP        GBP 
                                                                           7 441 
As at 29 February 2020                           7 324 494    116 523        018 
Additions for the year - other expenditure         977 797      4 598    982 395 
                                                                          (3 069 
Impairment for the year                        (3 069 232)          -       232) 
Exchange differences                             (108 373)    (5 347)  (113 720) 
                                                                           5 240 
As at 28 February 2021                           5 124 686    115 775        461 
Additions for the year - other expenditure       1 577 065          -  1 577 065 
                                                                          (1 058 
Transfer to mining asset                       (1 058 602)          -       602) 
Transfer to mining asset under construction      (678 467)             (678 467) 
Exchange differences                                91 047      4 397     95 443 
                                                                           5 175 
As at 28 February 2022                           5 055 729    120 172        901 
                                               ===========  =========  ========= 
 
 
 
                     Exploration 
                  and evaluation    Computer 
                          assets    software   Total 
Accumulated Depreciation     GBP         GBP     GBP 
As at 28 February 2021         -           -       - 
Charge for the period           -     28 198  28 198 
Exchange differences            -       (79)    (79) 
As at 28 February 2022          -     28 119  28 119 
                            =====  =========  ====== 
 
 
 
                        Exploration 
                     and evaluation   Computer 
                             assets   software      Total 
Net Book Value                  GBP        GBP        GBP 
As at 28 February 2022    5 055 729     92 053  5 147 782 
As at 28 February 2021    5 124 686    115 775  5 240 461 
As at 28 February 2020    7 324 494    116 523  7 441 018 
 
 

For the purposes of impairment testing, the intangible exploration and evaluation assets are allocated to the Group's cash-generating units, which represent the lowest level within the Group at which the intangible exploration and evaluation assets are measured for internal management purposes, which is not higher than the Group's operating segments as reported in Note 4.

The amounts for intangible exploration and evaluation assets represent costs incurred on active exploration projects. Amounts capitalised are assessed for impairment indicators under IFRS 6 at each year end as detailed in the Group's accounting policy.

During the year, the Group transferred the costs incurred on the Phase 1 Stage II Definitive Feasibility Study (DFS) from exploration & evaluation assets to mining asset under construction. It was determined that the project had reached the stage of being commercially viable and technically feasible, therefore, the transfer from intangible assets to property, plant and equipment was deemed necessary. Demonstration of commercial viability and technical feasibility coincided with a board decision and approval to commence development and construction of the project. As this expansion was still being constructed at year-end, the cost of the study was transferred to the mining asset under construction.

Furthermore, the Group transferred the purchase price of the Uis mining licence ML134. The pegmatites covered by this mining licence are currently being mined at the Uis Mine. As mining activities are actively taking place and revenue is being generated from the ore that has been mined on this licence area, management concluded that the value of this licence must be moved to property, plant and equipment, in the mining asset category.

The Group considers the South African exploration and evaluation assets to be non-core as it continues to primarily focus on developing its Namibian assets. Accordingly, the capitalised exploration and evaluation expenditure relating to the South African assets of GBP3.069m was impaired to nil in the prior year on the basis that the Group does not intend to incur any further expenditure on its South African licences.

The directors have concluded that there are no indicators of impairment in respect of the carrying value of the Namibian exploration and evaluation assets at 28 February 2022 based on planned future development of the projects and current and forecast tin prices.

13. Property, plant and equipment

 
                          Mining                   Mining 
                          asset                    asset                                                                           Mobile 
                          under          Mining    -           Decommissioning   Right-of-use   Computer                           equipment 
                 Land     construction    asset    Stripping    asset             Asset         Equipment   Furniture   Vehicles   (crane)     Total 
Cost 
As at 29 
 February                       12 000                                                                                                           12 607 
 2020            12 438            929         -           -            79 497        255 964      94 373      84 748     79 135           -        084 
Additions for 
 the                             2 028                                                                                                            2 570 
 year                 -            009   123 803           -            90 323        259 957      46 543      21 598          -           -        233 
Disposals for 
 the 
 year                 -              -         -           -                 -              -     (1 955)           -          -           -    (1 955) 
Transfer 
 between 
 categories of                 (13 550    13 550 
 assets               -           114)       114           -                 -              -           -           -          -           -          - 
Foreign 
 exchange 
 differences      (576)      (478 824)     1 236           -           (2 777)        (9 250)     (3 903)     (3 681)    (3 662)           -  (501 437) 
                -------  -------------  --------  ----------  ----------------  -------------  ----------  ----------  ---------  ----------  --------- 
As at 28 
 February                                 13 675                                                                                                 14 673 
 2021            11 862              -       153           -           167 043        506 671     135 058     102 665     75 473           -        925 
Additions for 
 the                             2 600                 1 335                                                                                      5 213 
 year                 -            997   728 150         861            95 585        129 982      73 337      72 991          -     176 273        176 
Disposals for 
 the 
 year                 -              -         -           -                 -              -    (15 891)           -   (12 523)           -   (28 414) 
Transfer from 
 exploration 
 and 
 evaluation 
 asset                                     1 058                                                                                                  1 737 
 (see note 11)        -        678 467       602           -                 -              -           -           -          -           -        069 
Foreign 
 exchange 
 differences        450        304 389   147 863     (3 733)             6 076         18 877       4 968       3 674      2 901       (493)    484 972 
                -------  -------------  --------  ----------  ----------------  -------------  ----------  ----------  ---------  ----------  --------- 
As at 28 
 February                        3 583    15 609       1 332                                                                                     22 080 
 2022            12 312            853       768         128           268 704        655 530     197 472     179 330     65 851     175 780        728 
                =======  =============  ========  ==========  ================  =============  ==========  ==========  =========  ==========  ========= 
 
Accumulated 
Depreciation 
As at 29 
 February 
 2020                 -              -         -                             -         53 887      40 339      18 610     26 380                139 216 
Charge for the 
 year                 -              -   717 864                             -        108 794      35 622      17 566     18 682                898 528 
Foreign 
 exchange 
 differences          -              -     6 118                             -        (1 407)     (1 528)       (669)    (1 034)                  1 480 
                -------  -------------  --------  ----------  ----------------  -------------  ----------  ----------  ---------  ----------  --------- 
As at 28 
 February                                                                                                                                         1 039 
 2021                 -              -   723 982           -                 -        161 274      74 433      35 507     44 028           -        224 
Charge for the                             1 115                                                                                                  1 861 
 year                 -              -       292     489 372             9 461        165 689      40 445      28 329      9 204       3 231        023 
Foreign 
 exchange 
 differences          -              -    20 501     (1 368)              (26)          5 661       2 727       1 255      1 646         (9)     30 388 
                -------  -------------  --------  ----------  ----------------  -------------  ----------  ----------  ---------  ----------  --------- 
As at 28 
 February                                  1 859                                                                                                  2 930 
 2022                 -                      775     488 005             9 435        332 624     117 605      65 091     54 878       3 222        635 
                =======  =============  ========  ==========  ================  =============  ==========  ==========  =========  ==========  ========= 
 
Net Book Value 
As at 28 
 February                        3 583    13 749                                                                                                 19 150 
 2022            12 312            853       993     844 123           259 269        322 906      79 867     114 239     10 973     172 558        092 
As at 28 
 February                                 12 951                                                                                                 13 634 
 2021            11 862              -       171                       167 043        345 397      60 625      67 158     31 445                    701 
As at 29 
 February                       12 000                                                                                                           12 467 
 2020            12 438            929         -                        79 497        202 077      54 034      66 138     52 755                    868 
 

The Uis Tin Mine reached commercial production during the previous financial year, on 1 December 2020. Nameplate capacity (taking into account mining volumes, plant throughput and recovery) of Stage I of Phase 1 was defined as 60 tonnes of tin concentrate at a grade of 60% tin in concentrate per month (36 tonnes of contained tin). 63.9 tonnes of tin concentrate was produced in November 2020 and production of 60 tonnes or more per month has been consistently achieved subsequently. Management therefore determined that commercial production was reached at this point. Up to this date, costs directly related to the development of the mine were capitalised to the mining asset.

In October 2020, the Company embarked on the Uis Phase 1 Stage II Definitive Feasibility Study (DFS) with a view to expand the existing Phase 1 plant to increase its nameplate production from 60 to 105 tonnes of tin concentrate per month. This DFS has been approved by the Board, the necessary funding has been obtained and construction has commenced to implement the expansion. All costs associated with carrying out the study were previously capitalized as exploration and evaluation assets under IFRS 6. During the financial year, management performed an assessment and transferred the costs associated with the study from exploration and evaluation assets to mining assets under construction. It was determined that the project had reached the stage of being commercially viable and technically feasible, therefore, the transfer was deemed necessary. The capitalised costs of the study as well as the construction costs of the expansion will remain in mining asset under construction until the project has been completed.

Additions to the mining asset include capitalised costs and equipment purchased as part of the Uis Phase 1 Continuous Improvement project as well as the transfer of the cost of ML134 from exploration and evaluation assets to PPE.

The Group has elected to capitalise the costs of waste stripping activities as these are necessary to allow improved access to the ore and, therefore, will result in future economic benefits. The costs of drilling, blasting and load & haul of waste material is capitalised until such time that the underlying ore is used in production.

Please refer to note 19 for further information on the right-of-use asset.

From 1 December 2020, depreciation of the mining asset commenced in accordance with IAS 16. The total depreciation charge for the current financial year was split between administrative expenses and cost of sales. GBP221 948 (2021: GBP275 987) was included in administrative expenses, while the balance of GBP1 639 075 (2021: GBP622 541) was included in cost of sales as it was a cost that was incurred for mining and processing purposes.

14. Inventories

 
                             Year ended    Year ended 
                            28 February   28 February 
                                   2022          2021 
                                    GBP           GBP 
Tin concentrate on hand         909 180       373 310 
Run-of-mine stockpile           155 389       427 423 
Consumables                     387 364       195 965 
                           ------------ 
                              1 451 933       996 698 
                           ============  ============ 
 

15. Trade and other receivables

 
                               Year ended    Year ended 
                              28 February   28 February 
                                     2022          2021 
                                      GBP           GBP 
Trade receivables                  96 173       185 451 
Trade receivables at fair 
 value through profit 
 or loss                          812 594       531 583 
Other receivables               1 875 561       204 779 
VAT receivables                 1 169 053       266 339 
                                3 953 382     1 188 152 
                             ============  ============ 
 

The Directors consider that the carrying amount of trade and other receivables approximates to their fair value due to their short-term nature. No allowance for any expected credit losses against any of the trade receivables is provided due to no history of default or non-payment from any of the Group's customers.

Trade receivables at fair value through profit or loss relates to the change in the fair value of trade receivables under the offtake agreement between the date of initial recognition and the period end resulting from forecast market prices at the estimated final pricing date.

Other receivables primarily consist of prepayments that the Group has made and deposits that have been paid on items of equipment that are necessary for the Phase 1 Stage II expansion.

The total trade and other receivables denominated in South African Rand amount to GBP61 316 (2021: GBP79 888), denominated in Namibian Dollars amount to GBP2 851 028 (2021: GBP429 819) and denominated in US Dollars amount to GBP812 594 (2021: 627 566).

16. Cash and cash equivalents

 
                              Year ended    Year ended 
                             28 February   28 February 
                                    2022          2021 
                                     GBP           GBP 
Cash on hand and in bank       7 365 379     1 351 200 
                            ============  ============ 
 
 

Cash and cash equivalents (which are presented as a single class of assets on the face of the Statement of Financial Position) comprise cash at bank. The Directors consider that the carrying amount of cash and cash equivalents approximates their fair value. The total cash and cash equivalents denominated in South African Rand amount to GBP80 463 (2021: GBP119 976), the total cash and cash equivalents denominated in Namibian Dollars amount to GBP1 279 798 (2021: GBP13 156) and the total cash and cash equivalents denominated in US Dollars amount to GBP3 450 626 (2021: GBP551 832).

17. Borrowings

 
                             Year ended    Year ended 
                            28 February   28 February 
                                   2022          2021 
                                    GBP           GBP 
Standard Bank term 
 loan facility                4 523 414             - 
Standard Bank VAT 
 facility                       367 739             - 
Standard Bank working 
 capital facility               228 988 
Nedbank working capital 
 facility                             -     1 710 247 
Loan note instrument                  -     2 159 242 
                              5 120 141     3 869 489 
                           ============  ============ 
 

On 18 November 2021, a term loan facility of N$90 000 000 (c. GBP4 428 000), a VAT facility of N$8 000 000 (c. GBP394 000) and a working capital facility of N$35 000 000 (c. GBP1 722 000) was entered into between the Company's subsidiary, Uis Tin Mining Company (Pty) Ltd and Standard Bank Namibia.

The maturity date of the term loan facility is November 2026 and the capital balance of the loan together with accrued interest will be repaid in quarterly instalments over the next 5 years. Interest is charged on the outstanding capital balance of the loan at a rate of 3-month JIBAR plus a margin of 4.5%.

The Group is required to meet the following covenants as part of the term loan facility agreement:

   --      EBITDA ÷ total interest must not be lower than 4.5 times 

-- Total debt ÷ EBITDA must not exceed 4 times in year 1, 3.5 times in year 2 and 3 times thereafter

-- Free cash flow before Debt Service Cover ÷ Principal and Interest Senior Debt Service Payments must not be lower than 1.3 times

-- Free cash flow before Debt Service Cover + Total Cash Collateral ÷ Principal and Interest Senior Debt Service Payments must not be lower than 2 times

The Group met all the above covenant requirements at 28 February 2022.

The VAT facility is secured by assessed/audited VAT returns (refunds) which have not been paid by Namibia Inland Revenue. Standard Bank Namibia provides a facility amounting to the unpaid refunds. Any drawdowns against this facility are repaid to the bank upon receipt of cash from Namibia Inland Revenue.

The VAT facility and the working capital facility have no fixed maturity date, but are both renewed on an annual basis. Interest accrues on these facilities at the Namibian prime rate less 1%.

Standard Bank Namibia have provided a N$ 4 117 500 (c. GBP195 000) guarantee to the Namibia Power Corporation Pty Limited in relation to a deposit for the supply of electrical power. As a result of the guarantee provided by Standard Bank, no cash was paid over for the deposit.

The full working capital facility that was previously held with Nedbank Namibia was repaid during the year as the Group's facilities were moved over to Standard Bank.

On 5 May 2020, GBP2 050 000 financing was secured by way of a new loan note facility. The notes, which were issued in tranches of GBP50 000, had an interest rate of 10% per annum which was accrued and payable in full on redemption. The notes had a 12-month term and were repaid along with the accrued interest in May 2021.

Reconciliation of net cash flow to movement in borrowings

 
Balance as at 29 February 
 2020                                               1 230 961 
Incoming cash flows 
---------------------------------------  -------------------- 
Proceeds from working capital 
 facility                                           5 858 028 
Proceeds from loan note instrument                  2 050 000 
---------------------------------------  -------------------- 
Outgoing cash flows 
---------------------------------------  -------------------- 
Repayment of working capital 
 facility                                         (5 347 044) 
 Interest paid on working capital 
  facility                                           (31 696) 
Non-cash flows 
---------------------------------------  -------------------- 
Interest accrued on loan note 
 instrument                                           146 836 
Warrants issued during the 
 year                                               (162 480) 
Amortisation of warrant charge                        124 886 
---------------------------------------  -------------------- 
Balance as at 28 February 
 2021                                               3 869 489 
Incoming cash flows 
---------------------------------------  -------------------- 
Proceeds from term loan                             4 428 000 
Proceeds from VAT facility                            367 739 
Proceeds from working capital 
 facility                                             228 988 
---------------------------------------  -------------------- 
Outgoing cash flows 
---------------------------------------  -------------------- 
Repayment of loan note instrument 
 and interest                                     (2 196 836) 
Repayment of working capital 
 facility                                         (1 607 592) 
 Interest paid on working capital 
  facility                                          (102 655) 
---------------------------------------  -------------------- 
Non-cash flows 
---------------------------------------  -------------------- 
Interest accrued on term loan 
 (capitalised to mining asset 
 under construction)                                   95 414 
Amortisation of warrant charge                         37 594 
---------------------------------------  -------------------- 
Balance as at 28 February 
 2022                                               5 120 141 
                                         ==================== 
 

18. Trade and other payables

 
                    Year ended         Year ended 
                   28 February   28 February 2021 
                          2022                GBP 
                           GBP 
Trade payables       2 293 471          1 094 390 
Other payables         341 276            141 677 
Accruals               335 087            248 415 
                     2 969 833          1 484 482 
                  ============  ================= 
 

Trade and other payables principally comprise amounts outstanding for trade purchases and on-going costs. The average credit period taken for trade purchases is 30 days.

The Group has financial risk management policies in place to ensure that payables are paid within the pre-arranged credit terms. No interest has been charged by any suppliers as a result of late payment of invoices during the year.

The Directors consider that the carrying amount of trade and other payables approximates to their fair value.

The total trade and other payables denominated in South African Rand amount to GBP124 904 (2021: GBP232 071) and GBP2 692 924 (2021: GBP1 185 802) is denominated in Namibian Dollars.

19. Environmental rehabilitation liability

 
                                   GBP 
Balance as at 28 February 
 2020                           86 005 
Increase in provision           90 323 
Interest expense                 7 593 
Foreign exchange differences   (3 004) 
                               ------- 
Balance as at 28 February 
 2021                          180 917 
Increase in provision           95 585 
Interest expense                12 080 
Foreign exchange differences     6 569 
                               ------- 
Balance as at 28 February 
 2022                          295 151 
                               ======= 
 

Provision for future environmental rehabilitation and decommissioning costs are made on a progressive basis. Estimates are based on costs that are regularly reviewed and adjusted appropriately for new circumstances. The environmental rehabilitation liability is based on disturbances and the required rehabilitation as at 28 February 2022.

The rehabilitation provision represents the present value of decommissioning costs relating to the dismantling and sale of mechanical equipment and steel structures related to the Phase 1 pilot plant, the demolishing of civil platforms, and reshaping of earthworks. A provision for this requires estimates and assumptions to be made around the relevant regulatory framework, the magnitude of the possible disturbance, and the timing, extent and costs of the required closure and rehabilitation activities. In calculating the appropriate provision, cost estimates of the future potential cash outflows based on current studies of the expected rehabilitation activities and timing thereof are prepared. These forecasts are then discounted to their present value using a risk-free rate specific to the liability. In determining the amount attributable to the rehabilitation liability, management used a discount rate of 10% (2021: 12.8%), an inflation rate of 5% (2021: 6%), and an estimated mining period of 17 years (2021: 18 years). Actual rehabilitation and decommissioning costs will ultimately depend upon future market prices for the necessary rehabilitation works and timing of when the mine ceases operation.

20. Lease liability

The Company assessed all existing and new rental agreements and concluded that the following rentals fall within the scope of IFRS 16: Leases and therefore a lease liability has been raised:

 
                      Lease      Option to extend/terminate                Incremental 
                       term                                                 borrowing 
                                                                            rate 
                                 Option to extend not specified 
                                  in contract. Term of lease determined 
 Office building      5 years     to be 5 years.                           13.75% 
                     ---------  ----------------------------------------  ------------ 
                                 Option to extend not specified 
                                  in contract. Term of lease determined 
 Workshop facility    2 years     to be 2 years.                           7.5% 
                     ---------  ----------------------------------------  ------------ 
                                 The lease will continue automatically 
                                  after the initial period for 
                                  an open-ended period. Either 
                                  party must provide written notice 
 Residential                      if they wish to terminate. Lease 
  housing             5 years     term determined to be 5 years.           8.5% 
                     ---------  ----------------------------------------  ------------ 
                                 The lessee is granted the option 
                                  to purchase the units after the 
 Mobile Units         2 years     lease period of 2 years.                 7.5% 
                     ---------  ----------------------------------------  ------------ 
 
 
                            Office                        Mobile 
                          Building  Workshop   Housing     units      Total 
                               GBP       GBP       GBP       GBP        GBP 
Balance at 28 February 
 2020                      223 673         -         -         -    223 673 
Additions                        -   108 252   151 705         -    259 957 
Interest expense            24 419     3 923    11 349         -     39 691 
Lease payments            (64 201)  (30 319)  (34 080)         -  (128 600) 
Foreign exchange 
 differences              (10 749)       818     1 287         -    (8 644) 
                         --------- 
Balance at 28 February 
 2021                      173 142    82 674   130 261         -    386 077 
Additions                   61 293         -         -    68 689    129 982 
Interest expense            25 103     4 259     9 857     3 411     42 630 
Lease payments            (95 317)  (54 641)  (36 811)  (26 892)  (213 661) 
Foreign exchange 
 differences                 6 600     3 280     5 021     (126)     14 775 
                         --------- 
Balance at 28 February 
 2022                      170 821    35 572   108 328    45 082    359 803 
                         =========  ========  ========  ========  ========= 
 

The following is the split between the current and the non-current portion of the liability:

 
                          Year ended    Year ended 
                         28 February   28 February 
                                2022          2021 
                                 GBP           GBP 
Non-current liability        167 215       260 512 
Current liability            192 588       125 565 
                             359 803       386 077 
                        ============  ============ 
 

Reconciliation of net cash flow to movement in leases

 
Balance as at 28 February 
 2021                             386 077 
Outgoing cash flows 
------------------------------  --------- 
Lease payments                  (213 661) 
------------------------------  --------- 
Non-cash flows 
------------------------------  --------- 
Additions                         129 982 
Interest expense                   42 630 
Foreign exchange differences       14 775 
Balance as at 28 February 
 2022                             359 803 
 

21. Share capital

 
                                        Number of ordinary 
                                              shares of no 
                                          par value issued  Share Capital 
                                            and fully paid            GBP 
Balance at 29 February                             653 146 
 2020                                                  373     20 487 239 
Capital Raise - 3 August 
 2020                                          145 238 089      3 050 000 
Shares issued to suppliers                      15 273 480        320 743 
Share issue costs                                        -      (253 317) 
Shares issued to directors/employees            16 133 440        403 336 
Loan note conversion                            44 898 630      1 600 000 
                                        ------------------  ------------- 
Balance at 28 February                             874 690 
 2021                                                  012     25 608 001 
Warrants exercised - 22 
 April 2021                                      1 686 666         63 150 
Capital raise - 12 May 2021                    216 666 667     13 000 000 
Share issue costs                                        -      (823 447) 
Convertible loan note settled 
 - 25 May 2021                                  18 963 699        430 055 
Shares issued to suppliers 
 - 25 May                                          327 868         29 672 
Shares issued to suppliers 
 - 15 Dec                                          798 001         39 102 
Exercising of employee share 
 options - 14 Jan                                2 185 087         72 059 
Exercising of employee share 
 options - 27 Jan                                1 250 000         56 250 
Exercising of employee share 
 options - 22 Feb                                5 273 684        180 236 
                                        ------------------  ------------- 
Balance as at 28 February                        1 121 841 
 2022                                                  684     38 655 078 
                                        ==================  ============= 
 

Authorised: 1 220 486 913 ordinary shares of no par value

Allotted, issued and fully paid: 1 121 841 684 ordinary shares of no par value

On 22 April 2021, warrant holders exercised 1 186 666 warrants at an exercise price of 4.5 pence and 500 000 warrants at an exercise price of 1.95 pence.

On 12 May 2021, the Company completed an equity fundraising by way of a placing and direct subscription of 216 666 667 ordinary shares of no par value in the Company at a price of 6 pence per share.

On 25 May 2021, the holders of the outstanding 2019 Convertible Loan Notes elected to convert a portion of the outstanding amount into fully paid ordinary shares of no par value in the Company, with the remainder being redeemed in cash. 18 963 699 ordinary shares of no par value were issued to various holders to settle this loan.

On 25 May 2021, 327 868 ordinary shares of no-par value were issued to Hannam & Partners Advisory Limited, in accordance with the terms of their broker engagement letter with the Company. These shares were issued at a price of 6 pence per share.

On 4 January 2021, 16 133 440 ordinary shares of no par value were issued to various directors and employees in lieu of payment of director fees and part settlement of salaries. These shares were issued at a price of 2.5 pence per share.

On 15 December 2021, 798 001 ordinary shares of no par value were issued to settle a contractual liability at 4.90 pence in lieu of fees in relation to a consulting agreement.

On 14 January 2022, the Company received notice from share option holders to exercise 1 300 877 share options at an exercise price of 3 pence, 467 105 share options at an exercise price of 3.5 pence and 417 105 share options at an exercise price of 4 pence.

On 27 January 2022, the Company received notice from share option holders to exercise 1 250 000 share options at an exercise price of 4.5 pence.

On 22 February 2022, the Company received notice from share option holders to exercise 2 336 842 share options at an exercise price of 3 pence, 1 468 421 share options at an exercise price of 3.5 pence, and 1 468 421 share options at an exercise price of 4 pence.

22. Warrants

The following warrants were granted during the year ended 28 February 2021:

 
Date of grant          10 December 
                           2020     7 July 2020  31 May 2020  5 May 2020 
Number granted          2 500 000    2 500 000    2 500 000   13 000 000 
Contractual life        2.4 years    2.8 years    2.9 years    3 years 
Estimated fair value 
 per warrant (GBP)       0.0101       0.0122       0.0068       0.0069 
 

The estimated fair values were calculated by applying the Black Scholes pricing model. The model inputs were:

 
Date of grant            10 December 
                             2020     7 July 2020  31 May 2020  5 May 2020 
Share price at grant 
 date (pence)               2.35           3           1.8         1.8 
Exercise price (pence)      1.95         1.95         1.95         1.95 
Expected life             2.4 years    2.8 years    2.9 years    3 years 
Expected volatility          60%          60%          60%         60% 
Expected dividends           Nil          Nil          Nil         Nil 
Risk-free interest 
 rate                       1.24%        1.24%        1.24%       1.24% 
 

The warrants in issue during the year are as follows:

 
Outstanding at 29 February 
 2020                          5 671 939 
Exercisable at 29 February 
 2020                          5 671 939 
Granted during the year       20 500 000 
Expired during the year      (1 871 939) 
Exercised during the year              - 
                             ----------- 
Outstanding at 28 February        24 300 
 2021                                000 
Exercisable at 28 February        24 300 
 2021                                000 
Granted during the year                - 
Expired during the year                - 
Exercised during the year    (1 686 666) 
                             ----------- 
Outstanding at 28 February        22 613 
 2022                                334 
Exercisable at 28 February        22 613 
 2022                                334 
 

The warrants outstanding at year end have an average exercise price of GBP0.024, with a weighted average remaining contractual life of 1.13 years.

On 22 April 2021, notice was received from warrant holders to exercise 1 186 666 warrants at an exercise price of 4.5 pence and 500 000 warrants at an exercise price of 1.95 pence. The charges previously raised on these warrants was reversed, resulting in a movement in the warrant reserve. Please refer to the statement of changes in equity for the reconciliation of the warrant reserve.

23. Share-based payment reserve

Director share options

The director share options in issue during the year are as follows:

 
Outstanding at 29 February        27 100 
 2020                                000 
Exercisable at 29 February        13 125 
 2020                                000 
Granted during the year                - 
Forfeited during the year              - 
Exercised during the year              - 
Expired during the year                - 
                             ----------- 
Outstanding at 28 February        27 100 
 2021                                000 
Exercisable at 28 February 
 2021                          8 389 999 
Granted during the year                - 
Forfeited during the year              - 
Exercised during the year    (1 250 000) 
Expired during the year                - 
                             ----------- 
Outstanding at 28 February 
 2022                         25 850 000 
Exercisable at 28 February 
 2022                         23 850 000 
 

On 4 January 2021, 10 600 000 share options held by the Chief Executive Officer, Anthony Viljoen were repriced by the Remuneration Committee to align company and shareholder expectations with long-term incentivisation goals. The exercise price and the first exercise date were changed, however, the contractual life of the options remained unchanged. The fair value of the repriced options (calculated using the Black Scholes method) decreased from the initial fair valuation. As such, no adjustment to amortising of the initial fair value over the vesting period was made.

A previous non-executive director elected to exercise his remaining 1 250 000 share options during the year. This resulted in a charge of GBP13 800 being passed through the share-based payment reserve.

No new share options were issued during the year.

The director share options outstanding at year end have an average exercise price of GBP0.045 (2021: GBP0.053), with a weighted average remaining contractual life of 1.79 years (2021: 2.77 years).

A director must remain as a director of the Company for the share options to vest. In the event that a director ceases to be a director during the vesting period, the Board reserves the right to determine whether the share options will be terminated or not. There are no market-based vesting conditions on the share options.

Employee share options

The employee share options in issue during the year are as follows:

 
Outstanding at 29 February        34 830 
 2020                                000 
Exercisable at 29 February        11 250 
 2020                                000 
Granted during the year                - 
Forfeited during the year              - 
Exercised during the year              - 
Expired during the year                - 
                             ----------- 
Outstanding at 28 February        34 830 
 2021                                000 
Exercisable at 28 February        26 610 
 2021                                001 
Granted during the year                - 
Forfeited during the year              - 
Exercised during the year    (7 458 771) 
Expired during the year                - 
                             ----------- 
Outstanding at 28 February        27 371 
 2022                                229 
Exercisable at 28 February        27 371 
 2022                                229 
 

On 4 January 2021, 34 830 000 share options held by employees were repriced by the Remuneration Committee to align company and shareholder expectations with long-term incentivisation goals. The exercise price and the first exercise date were changed, however the contractual life of the options remained unchanged. The fair value of the repriced options (calculated using the Black Scholes method) decreased from the initial fair valuation. As such, no adjustment to amortising of the initial fair value over the vesting period was made.

A number of employees elected to exercise their share options during the year. This resulted in a charge of GBP103 824 being passed through the share-based payment reserve.

The employee share options outstanding at the year end have an average exercise price of GBP0.034 (2021: GBP0.034), with a weighted average remaining contractual life of 1.96 years (2021: 2.96 years).

An employee must remain in employment with the Company for the share options to vest. There are no market-based vesting conditions on the share options.

Director shares to be issued

Directors fees of GBP25 508 (2021: GBP16 342) are owing to the directors at the end of the year. The Company may consider settling these fees by issuing shares in the future.

Employee shares to be issued

Employee salaries of GBP4 182 (2021: GBP17 720) are owing to employees at the end of the year. The Company may consider settling these salaries by issuing shares in the future.

24. Non-controlling Interests

Non-controlling interest that is material in the Group relates to the Small Miners of Uis ("SMU") who own 15% of UTMC. SMU is a non-profit association incorporated in Namibia. The entity was set up by the Ministry of Mines and Energy to act on behalf of small-scale miners across Namibia.

Other includes the following minority interests which are not material:

   --      Cannosia Trading 62 CC which own 16% of Renetype 
   --      African Women Enterprise Investments (Pty) Ltd which own 10% of Renetype 
   --      Lerama Resources (Pty) Ltd which own 50% of Jaxson 
   --      Tamiforce (Pty) Ltd which own 26% of Zaaiplaats 
 
As at 28 February 2022 
                                                UTMC     Other      Total 
Amount attributable to all shareholders: 
Profit / (loss) after tax                  2 281 762   (3 926)  2 277 836 
 
Non-current assets                         7 085 066    12 313  7 097 379 
Current assets                             8 862 468         -  8 862 468 
                                           ---------  --------  --------- 
                                              15 947               15 959 
Total assets                                     534    12 313        847 
                                           ---------  --------  --------- 
 
                                              12 843               12 888 
Non-current liabilities                          653    44 967        620 
Current liabilities                        1 788 861    12 786  1 801 648 
                                           ---------  --------  --------- 
                                              14 632               14 690 
Total liabilities                                514    57 753        267 
                                           ---------  --------  --------- 
 
                                               1 315                1 269 
Net assets / (liabilities)                       020  (45 440)        580 
                                           =========  ========  ========= 
 
Amount attributable to non-controlling 
 interest: 
Profit / (loss) after tax                    342 264   (1 021)    341 243 
Net assets / (liabilities)                   196 230  (13 030)    183 200 
 
As at 28 February 2021 
                                                UTMC     Other      Total 
Amount attributable to all shareholders: 
Loss after tax                             (659 673)   (7 150)  (666 822) 
 
Non-current assets                         2 678 021    15 233  2 693 254 
Current assets                             2 524 054         -  2 524 054 
                                           ---------  --------  --------- 
                                               5 202                5 217 
Total assets                                     076    15 233        308 
                                           ---------  --------  --------- 
 
Non-current liabilities                    5 136 254    43 275  5 179 529 
Current liabilities                          997 620    11 964  1 009 584 
                                           ---------  --------  --------- 
                                               6 133                6 189 
Total liabilities                                874    55 239        113 
                                           ---------  --------  --------- 
 
Net liabilities                            (931 798)  (40 006)  (971 804) 
                                           =========  ========  ========= 
 
Amount attributable to non-controlling 
 interest: 
Loss after tax                              (98 951)   (1 970)  (100 921) 
Net liabilities                              139 770    11 574    151 344 
 

25. Financial instruments

The Group is exposed to the risks that arise from its use of financial instruments. This note describes the objectives, policies and processes of the Group for managing those risks and the methods used to measure them. Further quantitative information in respect of these risks is presented throughout these financial statements.

Capital risk management

The Group manages its capital to ensure that entities in the Group will be able to continue as going concerns while maximising returns to shareholders. In order to maintain or adjust the capital structure, the Group may issue new shares or arrange debt financing.

The capital structure of the Group consists of cash and cash equivalents and equity, comprising issued capital, issued convertible loan notes, borrowings and retained losses.

The Group is not subject to any externally imposed capital requirements.

Significant accounting policies

Details of the significant accounting policies and methods adopted including the criteria for recognition, the basis of measurement, and the bases for recognition of income and expenses for each class of financial asset, financial liability, and equity instrument, are disclosed in note 2.

Principal financial instruments

The principal financial instruments used by the Group, from which financial instrument risk arises, are as follows:

   --      Trade and other receivables 
   --      Cash and cash equivalents 
   --      Trade and other payables 
   --      Borrowings 
   --      Lease liability 

Categories of financial instruments

The Group holds the following financial assets:

 
                                 Year ended    Year ended 
                                28 February   28 February 
                                       2022          2021 
                                        GBP           GBP 
Measured at amortised 
 cost: 
Trade and other receivables       1 971 734       390 230 
Cash and cash equivalents         7 365 379     1 351 200 
 
Measured at fair value 
 through profit or loss: 
Trade and other receivables         812 594       531 583 
                                     10 149 
Total financial assets                  708     2 273 013 
                               ============  ============ 
 

Under its customer sale arrangement, the Group receives a provisional payment upon satisfaction of its performance obligations based on the spot price at that date. This occurs prior to the final price determination, with the Group then subsequently receiving or paying the difference between the final price and quantity and the provisional payment. As a result of the pricing structure, the instrument is classified at fair value through profit or loss and measured at fair value with resulting changes in fair value recorded as other revenue.

Trade receivables at fair value through profit or loss fail the criteria for being measured at amortised cost owing to the variability resulting from final pricing adjustments. Financial instruments measured at fair value are presented by level within which the fair value measurement is categorised. The levels of fair value measurement are determined as follows:

   --      Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities. 

-- Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

-- Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).

The Group's contract receivable at 28 February 2022 is recorded at fair value through profit or loss and fair valued based on the estimated forward prices that will apply under the terms of the sales contracts on the product reaching the port of destination. The trade receivables fair value reflects amounts receivable from the customer adjusted for forward prices expected to be realised.

The forward price is based on the expected LME 3-month tin price on the date of finalisation. Given the short period to final pricing, the time value of money is not considered to be significant.

Fair value of this trade receivable at fair value through profit or loss is categorised at Level 1. During the year there were no transfers between levels of fair value hierarchy.

The Group holds the following financial liabilities:

 
                                 Year ended    Year ended 
                                28 February   28 February 
                                       2022          2021 
                                        GBP           GBP 
Measured at amortised 
 cost: 
Trade and other payables          2 969 833     1 484 482 
Borrowings                        5 120 141     3 869 489 
Lease liability                     359 803       386 077 
Total financial liabilities       8 449 777     5 740 048 
                               ============  ============ 
 

Maturity analysis of the contractual undiscounted cash flows:

 
                                       Between        Between        Between       Total 
                        Up to                3              1              2 
                     3 months    and 12 months    and 2 years    and 5 years 
 Trade and other 
  payables          2 969 833                -              -              -   2 969 833 
 Borrowings           139 694          885 042      1 031 067      3 064 338   5 120 141 
 Lease Liability       50 077          142 511        124 288         42 927     359 803 
                   ----------  ---------------  -------------  -------------  ---------- 
                        3 159 
                          604        1 027 553      1 155 355      3 107 265   8 449 777 
                   ==========  ===============  =============  =============  ========== 
 

General objectives, policies and processes

The Board has overall responsibility for the determination of the Group's risk management objectives and policies. The Board receives reports through which it reviews the effectiveness of the processes put in place and the appropriateness of the objectives and policies it sets.

The overall objective of the Board is to set policies that seek to reduce risk as far as possible without unduly affecting the Group's competitiveness and flexibility. Further details regarding these policies are set out below:

Credit risk

The Group's principal financial assets are bank balances and trade and other receivables.

Credit risk arises principally from the Group's cash and trade and other receivables balances. Credit risk is the risk that the counterparty fails to repay its obligation to the Group in respect of amounts owed. The Group gives careful consideration to which organisations it uses for its banking services in order to minimise credit risk.

The concentration of the Group's credit risk is considered by counterparty, geography and currency. The Group has split its cash reserves across multiple banks in an effort to mitigate credit risk. The Pound Sterling and US Dollar accounts are held with a bank in Mauritius which has a rating of Baa1 (Moody's), the Rand account is held with a bank in South Africa which has a rating of Ba2 (Moody's) and the Namibian Dollar account is held with a bank in Namibia with a rating of Ba2 (Moody's). The banks chosen remain stable and do not present any further risks.

The concentration of credit risk was as follows:

 
                      Year ended    Year ended 
                     28 February   28 February 
                            2022          2021 
                             GBP           GBP 
Currency 
Sterling               2 554 492       666 236 
USD                    3 450 626       551 832 
South African 
 Rand                     80 463       119 976 
Namibian Dollars       1 279 798        13 156 
                       7 365 379     1 351 200 
                    ============  ============ 
 

Credit risk relating to trade & other receivables has also been considered. Credit verification procedures are undertaken for all customers with whom we trade on credit. This includes an assessment of the credit quality of the customer, taking into account its financial position, past experience and other factors. The trade account receivables comprise a limited customer base. Ongoing credit evaluation of the financial position of customers is performed and compliance with credit limits by customers is regularly monitored by management. Please refer to note 15 for the concentration of credit risk relating to trade receivables.

At 28 February 2022, the Group held no collateral as security against any financial asset. The carrying amount of financial assets recorded in the financial statements, net of any allowances for losses, represents the Group's maximum exposure to credit risk without taking account of the value of any collateral obtained. The Group applies IFRS 9 to measure expected credit losses for receivables and these are regularly monitored and assessed. There has been no impairment of financial assets during the year. Management considers the above measures to be sufficient to control the credit risk exposure.

Liquidity risk

Liquidity risk is the risk that the Group will encounter difficulty in meeting its financial obligations as they fall due. Ultimate responsibility for liquidity risk management rests with the Board of Directors. The Board manages liquidity risk by regularly reviewing the Group's gearing levels, cash-flow projections and associated headroom and ensuring that excess banking facilities are available for future use.

The Group maintains good relationships with its banks and its cash requirements are anticipated via the budgetary process. At 28 February 2022, the Group had GBP7 365 379 (2021: GBP1 351 200) of cash reserves.

Market risk

The Group's activities expose it primarily to the financial risk of changes in foreign currency exchange rates and interest rates.

Interest rate risk

The Group has interest bearing assets in the form of cash & cash equivalents. The Group does not earn significant interest on cash balances.

The Group has interest bearing liabilities in the form of bank loans and facilities. These liabilities are exposed to variable interest rates. The following table details the Group's sensitivity to a 1% increase and a 1 % decrease in the interest rate.

 
                  Value   Cash flow impact   Cash flow impact 
                    GBP   of a 1% increase   of a 1% decrease 
                          in interest rate   in interest rate 
                                       GBP                GBP 
Borrowings    5 120 141           (51 201)             51 201 
 
 

Foreign exchange risk

The Group has foreign currency denominated assets and liabilities, and is therefore exposed to exchange rate fluctuations. The carrying amounts of the Group's foreign currency denominated monetary assets and liabilities, all in Pound Sterling, are shown below.

 
                               Year ended    Year ended 
                              28 February   28 February 
                                     2022          2021 
                                      GBP           GBP 
Cash and cash equivalents       4 810 887       684 964 
Other receivables               2 555 885     1 137 272 
Trade and other 
 payables                     (2 550 860)   (1 417 873) 
Borrowings                    (5 120 141)   (1 710 247) 
                                  304 229   (1 305 884) 
                             ============  ============ 
 

The Company operates on an international basis, therefore, foreign exchange risk exposures arise from transactions denominated in foreign currencies. The Company is exposed to foreign currency risk on fluctuations related to financial instruments that are denominated in British Pounds, US Dollars, South African Rand and Namibian Dollars.

The Group does not enter into any derivative financial instruments to manage its exposure to foreign currency risk.

The following table details the Group's sensitivity to a 10% increase and decrease in the Pound Sterling against the Rand and the Namibian Dollar. 10% is the sensitivity rate used when reporting foreign currency risk internally to key management personnel and represents management's assessment of the reasonable possible change in foreign currency rates. The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at year end for a 10% change in foreign currency rates.

 
               Rand denominated     Rand currency     Rand currency 
                 monetary items            impact            impact 
                            GBP     Strengthening         Weakening 
                                              GBP               GBP 
Assets                  141 779           155 957           127 601 
Liabilities           (124 904)         (137 395)         (112 414) 
               ----------------  ----------------  ---------------- 
                         16 875            18 562            15 187 
               ================  ================  ================ 
 
                Namibian Dollar   Namibian Dollar   Namibian Dollar 
                    denominated   currency impact   currency impact 
                 monetary items     Strengthening         Weakening 
                            GBP               GBP               GBP 
Assets                4 130 827         4 543 909         3 717 744 
Liabilities         (7 813 065)       (8 594 372)       (7 031 759) 
               ----------------  ----------------  ---------------- 
                    (3 682 239)       (4 050 462)       (3 314 015) 
               ================  ================  ================ 
 

26. Events after balance sheet date

Decline in Tin Price

The recent volatility in the tin prices has placed additional pressures on the group with regards to funding of capital expansion project via internal sources. Management had anticipated the declines and are already at advanced stages of securing the funding in order to continue its growth ambitions.

Proposed Lending Facility

Uis Tin Mining Company (Pty) Limited ("UTMC"), a subsidiary of the Group has entered into a conditional, credit approved, term sheet for a lending facility with the Development Bank of Namibia Limited ("Development Bank of Namibia") to fund the Uis Phase 1 Stage II Continuous Improvement Project.

As announced on 5 July 2022, a Proposed Lending Facility comprising a NAD 100 million (approximately GBP5.5 million) Senior Secured Lending Facility has been signed with the Development Bank of Namibia. Although the Lending Facility has been approved by the credit committee and board of the Development Bank of Namibia, there are certain conditions precedent that need to be adhered to, including completion of final legal documentation. At this stage there can be no guarantee the Lending Facility will be entered into, or that any funds will be drawn down, but AfriTin Management have every confidence that it will be. The Company has previously announced that the terms of this proposed lending facility would expire by the end of July 2022 but the Directors confirm that this has now been extended such that completion is anticipated around the end of September 2022. A further update will be provided at that time.

Issue of Share Options

On the 8th of April 2022, the Group has issued options of 54 310 000 ordinary shares as part of its Long-Term Incentive Scheme to certain Directors, PDMRs and employees of the Company. These are in line with the established share option scheme of the Company to both reward and incentivise key employees, as per the company's reward policies. These share options vest in three tranches over three and are exercisable at a price of 9.8 pence, 10.3 pence and 10.8 pence. They are conditional only on the continued employment of the relevant recipient as a director or employee of the company at the time of exercise.

Phase 1 Stage II Expansion: Construction Completed

Construction of the plant expansion circuits is now complete, allowing the Project to advance to the commissioning stage. Commissioning of the new circuits is being implemented in two stages: firstly, the commissioning of the dry plant which has commenced and will be completed by end of August 2022, and secondly the commissioning of the wet plant, which is scheduled for the month of September 2022. The commissioning process has been designed to minimise production disruption. There is a requirement to shutdown certain plant circuits to facilitate tie-ins with the existing plant but due to stockpiling and flexibility built into the current circuit, this is not expected to have a material impact on the production performance of the Company.

Key management change

During the month of July 2022 Mr Robert Sewell stepped down as CFO of the Company to pursue other opportunities. He remained as a consultant to the Company in the short-term to ensure a smooth transition process with the newly appointed CFO, Mr Hiten Ooka.

27. Related-party transactions

Balances and transactions between the Company and its subsidiaries, which are related parties, have been eliminated on consolidation and are not disclosed in this note.

Bushveld Minerals Limited ("Bushveld") is a related party due to Anthony Viljoen, Chief Executive Officer, being a Non-Executive Director on the Bushveld Board. During the period, Bushveld charged the Group GBP37 924 (2021: GBP82 423) for the use of office space. At period end, the Group owed Bushveld GBP71 040 (2021: GBP112 962).

The remuneration of the key management personnel of the Group, which includes the Directors, as well as Frans van Daalen and Robert Sewell, is set out below.

 
28 February 2022                                    Shares 
                                                    Issued        Shares 
                                       Share   in Relation        Issued  Director 
                                      Option   to Director   in Relation     Fees/   Other 
                                      Charge   Fees/Salary      to Bonus    Salary    Fees   Total 
                                         GBP           GBP           GBP       GBP     GBP     GBP 
Non-Executive Directors 
Glen Parsons (Chairman)                5 524             -             -    59 167       -  64 691 
Terence Goodlace                       5 524             -             -    56 308       -  61 832 
Laurence Robb                          5 524        18 000             -    17 000   8 000  48 524 
Michael Rawlinson (appointed 
 20 Dec 2021)                              -         3 500             -     4 000  49 102  56 602 
 
Executive Director 
Anthony Viljoen (Chief Executive                                                               183 
 Officer)                             13 258             -             -   170 454       -     712 
 
Other key management personnel 
Robert Sewell (Chief Financial                                                                 119 
 Officer)                              8 838             -             -   110 326       -     164 
Frans van Daalen (Chief Operating                                                              149 
 Officer)                              8 838             -             -   140 390       -     228 
                                                            ------------ 
                                                                               557      57     683 
                                      47 506        21 500             -       645     102     753 
                                     =======  ============  ============  ========  ======  ====== 
 
 
28 February 2021                                   Shares 
                                                   Issued        Shares 
                                      Share   in Relation        Issued  Director 
                                     Option   to Director   in Relation     Fees/  Other 
                                     Charge   Fees/Salary      to Bonus    Salary   Fees   Total 
                                        GBP           GBP           GBP       GBP    GBP     GBP 
Non-Executive Directors 
Glen Parsons (Chairman)              10 893        40 000             -         -      -  50 893 
Terence Goodlace                     10 761             -             -    28 750      -  39 511 
Laurence Robb                        10 761        13 000             -    12 000      -  35 761 
Roger Williams (resigned 
 28 September 2020)                  10 761             -             -    14 583      -  25 344 
 
Executive Director 
Anthony Viljoen (Chief Executive                                                             289 
 Officer)                            26 090        17 365       128 868   116 781      -     104 
 
Other key management personnel 
Robert Sewell (Chief Financial                                                               172 
 Officer)                            19 599             -        65 919    86 745      -     263 
Frans van Daalen (Chief                                                                      215 
 Operating Officer)                  22 099             -        81 178   112 322      -     599 
                                                           ------------ 
                                        110                         275       371            828 
                                        964        70 365           965       181      -     475 
                                    =======  ============  ============  ========  =====  ====== 
 

28. Capital commitments

Significant capital expenditure contracted for at the end of the reporting period but not recognised as liabilities is as follows:

 
                                  Year ended 
                                 28 February 
                                        2022 
                                         GBP 
Exploration and evaluation 
 projects                          1 021 297 
Property, plant and equipment      1 695 932 
                                   2 717 228 
                                ============ 
 

The full balance of these commitments will be due within the next 12 months.

29. Reserves within equity

Share capital

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.

Convertible loan note reserve

The convertible loan note reserve represents proceeds on issue of convertible loan notes relating to equity component plus accrued interest on the convertible loan notes. These notes were settled in full during the financial year .

Warrant reserve

The warrant reserve represents the cumulative charge to date in respect of unexercised share warrants at the balance sheet date.

Share-based payment reserve

The share-based payment reserve represents the cumulative charge to date in respect of unexercised share options at the balance sheet date as well as fees/salaries owed to directors/employees to be settled through the issuing of shares.

Foreign currency translation reserve

The foreign currency translation reserve comprises all foreign exchange differences arising from the translation of entities with a functional currency other than Pound Sterling.

Retained earnings/accumulated deficit

The retained earnings/accumulated deficit represents the cumulative profit and loss net of distribution to owners.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

FR FIFSSTAILVIF

(END) Dow Jones Newswires

August 31, 2022 02:01 ET (06:01 GMT)

Afritin Mining (LSE:ATM)
Historical Stock Chart
From Oct 2022 to Dec 2022 Click Here for more Afritin Mining Charts.
Afritin Mining (LSE:ATM)
Historical Stock Chart
From Dec 2021 to Dec 2022 Click Here for more Afritin Mining Charts.