TIDMBEM
RNS Number : 0903P
Beowulf Mining PLC
29 August 2017
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulations ("MAR") (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
For the purposes of MAR and Article 2 of Commission Implementing
Regulation (EU) 2016/1055, this announcement is being made on
behalf of Kurt Budge, Chief Executive Officer.
29 August 2017
Beowulf Mining plc
("Beowulf" or the "Company")
Unaudited Interim Financial Results and Management Update for
the Period Ended 30 June 2017
Beowulf (AIM: BEM; Aktietorget: BEO), the mineral exploration
and development company, focused on the Kallak magnetite iron ore
project and the Åtvidaberg polymetallic exploration licence in
Sweden, and its graphite portfolio in Finland, announces its
unaudited consolidated interim financial results for the six months
ended 30 June 2017 and provides a management update.
The unaudited consolidated interim financial results for nine
months ending 30 September 2017 and the next management update will
be released on or before 30 November 2017.
Overview of Activities in the Quarter
-- On 28 April 2017, the Company submitted a Heritage Impact
Assessment ("HIA") for Kallak North to the Mining Inspectorate. The
Company also presented an analysis of the indirect effects of a
mining operation at Kallak on Laponia with respect to reindeer
herding, and the effects of transport on Laponia.
-- The Company was notified, on 8 May 2017, that the Mining
Inspectorate had written to the County Administrative Board for the
County of Norrbotten ("CAB"), asking the CAB to give an opinion on
the Company's Kallak North Application ("Application") by 1 June
2017. Subsequently, the CAB requested, and was granted, an
extension to 16 June 2017.
-- The Company announced on 17 May 2017 a subscription for new
ordinary shares to raise GBP1,500,000 before expenses, at a price
of 6.5 pence per new ordinary share.
-- On 24 May 2017, the Company announced further results from
its recently completed eight-hole diamond drill programme at its
Aitolampi graphite project in Finland.
Drilling confirmed that electromagnetic ("EM") anomalies
identified at Aitolampi are associated with wide zones of graphite
mineralisation, with a mineralised strike length of at least 350
metres ("m") along the main conductive zone drill-tested, dipping
between 40 and 50 degrees to the southwest. The main EM zone
extends for 700m.
-- On 16 June 2017, the Company provided an update on
exploration activities at its Åtvidaberg licence. The Company had a
team of geologists in the field to conduct geological mapping and
to ground-check airborne magnetic targets, Versatile Time Domain
Electromagnetic ("VTEM") targets, and geochemical anomalies from
the till sampling programme completed in 2016. In addition, a
ground magnetic survey was conducted in the Mormor area, to
supplement existing airborne magnetic data.
In late April, the Company held a three-day field workshop at
Åtvidaberg, which brought together the Company's exploration team
and external experts with major mining company exploration
experience, relevant to Bergslagen, volcanogenic massive sulphide
mineralisation and modern exploration technologies.
-- On 16 June 2017, the Company announced the CAB had responded
to the Mining Inspectorate on the Company's Kallak North
Application. The CAB failed again to answer the Mining
Inspectorate's questions, but suggested that the Company needs to
provide more information, to further assess the potential impact of
a mining operation at Kallak on Laponia. The CAB did not state what
information needs to be provided.
The CAB has made no request to the Company at any time to
provide further information, and it has neither provided feedback
on the Company's submission to the CAB in December 2016, nor the
Company's HIA.
-- Afnan Khabiri was appointed, on 16 June 2017, to the position
of Stakeholder Communications Officer, based in Jokkmokk. Afnan
will lead the Company's communication efforts in the community.
-- On 29 June 2017, the Mining Inspectorate of Sweden returned
the Company's Kallak North Application to the Government of Sweden.
The Mining Inspectorate has asked the Government to decide who
should determine what, if any, impact a mining operation at Kallak
could have on Laponia.
As part of its latest review, as requested by the Government
almost 12 months before, the Mining Inspectorate has stated that
the Company's Environmental Impact Assessment ("EIA") is
consistent, in the detail provided, in meeting the requirements of
the Supreme Administrative Court ("SAC") judgement in the Norra K
rr case.
-- Loss after tax attributable to owners of the parent for the
six months ended 30 June 2017 is GBP466,451, GBP133,399 higher than
the same period last year (2016: loss GBP333,052).
-- Cash and cash equivalents at 30 June 2017 at GBP2,269,964,
are GBP1,038,370 above the corresponding period last year and
GBP660,745 above the level at 31 December 2016.
Post Period End
-- On 10 July 2017, the Company provided an update on Kurt
Budge's, Chief Executive Officer ("CEO"), attendance at Almedalen
during the week of the 3 July 2017.
At Almedalen, the CEO met with representatives of the Swedish
mining industry, politicians, and government agencies. During these
meetings, the CEO detailed the chronology of the application
process for an Exploitation Concession for Kallak North, and
presented the case that the Company's application, and recent
supplementary documentation, including a HIA, have more than
satisfied the requirements of the prescribed permitting
process.
The CEO shared the Company's "Big Picture" vision of Jokkmokk's
economic transformation, that could be delivered by a mining
operation at Kallak, and explained the Company's development
philosophy towards designing, engineering, and building a modern
and sustainable mining operation.
The CEO talked of the political support in Jokkmokk and
Norrbotten, and local business support for the Kallak project, the
frustration being felt by many with the permitting process, the
Company's future investment plans for Kallak, including a Scoping
Study and further drilling, as well as the value the Company places
on forming strong partnerships with stakeholders in Jokkmokk and
Norrbotten, to take the Kallak project forward.
-- On 21 July 2017, the Company announced that Copenhagen
Economics had been awarded a contract to study the local and
regional economic benefits of a mining operation at Kallak ("the
Project").
The Project will build on the work carried out to date, by the
Company and others, including the 2015 independent socio-economic
study initiated by Jokkmokks Kommun, completed by consultants
Ramböll, which in its findings concluded that a mining development
at Kallak would create direct and indirect jobs, increase tax
revenues and slow down population decline, and the 2010 study by
the Economics Unit of Luleå University of Technology, 'Mining
Investment and Regional Development: A Scenario-based Assessment
for Northern Sweden'.
Copenhagen Economics has relevant expertise in the regional
mining sector, and has recently finalised a review of the
attractiveness of the Swedish mining sector on a number of
parameters, including licensing and regulation. This review was
commissioned by the Swedish Agency for Growth Policy Analysis, part
of the Government of Sweden.
-- As at 23 August 2017, there were 301,680,626 Swedish
Depository Receipts issued representing almost 57.4 per cent of the
issued share capital of the Company. The remaining issued share
capital of the Company is held in the UK.
Kurt Budge, CEO, commented:
"Beowulf has a busy period from September onwards, with active
work programmes across our three business areas. We look forward to
providing updates on the Kallak North Application process, and
exploration activities at Åtvidaberg and on our graphite projects.
The strengthening of our cash position following the fundraise in
May 2017 means that we can keep pushing ahead on all fronts.
"I will be spending plenty of time in Sweden, now that our
Kallak North Application is back with the Government. With the new
parliamentary session starting in mid-September, we will be seeking
a clear understanding of what happens next in the process, and
making it clear to the Government that the required work has been
carried out, that relevant authorities have exhaustively reviewed
our Application, and made all necessary statements, such that the
award of an Exploitation Concession is fully deserved and
warranted.
"At Almedalen, I listened to a senior Government minister state
that development in rural areas only happens where there is
investment. I made the point to him that Beowulf has invested SEK
72 million in Kallak, a project which will transform Jokkmokk.
"I also stated to several parliamentary members, that there is a
spotlight on Sweden, specifically looking at how the Kallak project
is being handled, and how Beowulf, as an investor and public
company, is being treated. Questions are being asked about Sweden's
permitting processes, and pointedly Sweden's attractiveness as a
place to invest and do business.
"Despite the fact we still wait on a decision, the Board has
decided to start new work programmes at Kallak.
"As announced, we are collaborating with Copenhagen Economics on
articulating the economic benefits, to Jokkmokk and Norrbotten, of
a modern and sustainable mining operation at Kallak - the "Big
Picture" - and how it meets the objectives and ambitions of Swedish
government policy.
"Additionally, we have tendered a Scoping Study for Kallak
North, which, excitingly, will be the first step forward in project
development that we have taken during my time as CEO. Currently, we
are waiting for Scoping Study proposals to be sent in, and planning
exploration work programmes, including drilling, on Kallak and our
Parkijaure licences.
"I look forward to updating shareholders on progress in due
course."
Operational
Kallak North Exploitation Concession
On 29 June 2017, the Mining Inspectorate returned the Company's
Application to the Government of Sweden; almost 12 months to the
day when the Government asked the Mining Inspectorate of Sweden to
review the Company's Application in the context of the SAC
judgement in the Norra K rr case. The Mining Inspectorate has
stated that the Company's EIA is consistent, in the detail
provided, in meeting the requirements of the SAC judgement.
However, the Mining Inspectorate has asked the Government to
decide who should determine what, if any, impact a mining operation
at Kallak could have on Laponia. It is understood that the Mining
Inspectorate feels unable to decide on the Company's Application,
without an opinion from the CAB on the matter of Laponia, and an
opinion from the CAB on the Company's Application with respect to
Chapters 3 and 4 of the Environmental Code.
It is important to remember that with respect to Laponia, which
was granted World Heritage Status in 1996, the guidelines for the
establishment of its boundary state that the protected area should
typically be so largely defined that exploitations outside the area
should not be able to have a significant influence on the core
value of the world heritage status (Regeringens skrivelse
2001/02:171, Unescos världsarvskonvention och de svenska
världsarvsobjekten).
Kallak is one thousandth of the size of Laponia, an area of 13.6
square kilometres ("km(2) ") compared to Laponia's 940,000km(2) .
Kallak is approximately 34 kilometres from eastern Laponia at the
closest point, and further away as Laponia extends to the north and
west.
Since 2014, the Swedish Minerals Act and the Environmental Code
have not changed, neither has the Company's Application, and
Laponia has been in existence throughout. In 2015, the CAB
supported our application, the Mining Inspectorate recommended to
the Government of Sweden that the Concession be awarded, and now we
have it confirmed by the Mining Inspectorate that our EIA is
consistent, in the detail provided, in meeting the requirements of
the SAC judgement.
The CAB, on 1 October 2014, confirmed that the Company's EIA was
sufficient with respect to Chapters 3, 4 and 6 of the Environmental
Code and, on 7 July 2015, the CAB wrote to the Government of Sweden
and indicated that the Company's Application could be permissible
with respect to Chapters 3 and 4 of the Environmental Code.
Therefore, the Company has continually stated that without any new
opinion from the CAB, the CAB's position must be interpreted as if
the CAB has no objections to the granting of an Exploitation
Concession.
The CAB has made no request to the Company, at any time, to
provide further information, nor has it provided feedback on the
Company's submission to the CAB in December 2016 and the Company's
HIA, addressing matters raised earlier by the Swedish National
Heritage Board (Riksantikvarieämbetet, "RAÄ") and the Swedish
Environmental Protection Agency (Naturvårdsverket, "NV").
RAÄ and NV's earlier comments to the Mining Inspectorate,
acknowledged that Kallak does not directly affect Laponia. While
the Mining Inspectorate asked RAÄ and NV to be specific if the
Company's EIA was found to be insufficient in detail, the agencies
merely suggested that the Company should provide more details, to
describe the possible indirect effects of a mining operation at
Kallak on Laponia, the interaction of mining and reindeer herding,
and matters related to transport. These matters were addressed in
the Company's HIA.
The HIA followed United Nations Educational, Scientific and
Cultural Organisation ("UNESCO") guidelines. Typically, a HIA is
not required with an application for an Exploitation Concession,
but the Company voluntarily produced one, with the support of its
expert Swedish technical team and Swedish Advisory Board.
The Company has listened, and responded, to concerns raised
throughout the Application process. This has been demonstrated by
the submission to the CAB, in April 2014, of extensive
supplementary EIA studies, and, in November 2014, the Company
eliminating the Jelka-Rimakåbbå transport route from its plans,
responding to the CAB's concerns about the interaction of mining
and reindeer herding.
The Company is in communication with the Government of Sweden,
but we do not expect much progress on our Application until the
start of the new parliamentary session in mid-September.
Swedish Exploration Portfolio
Åtvidaberg
At the end of April 2017, the Company held a three-day field
workshop at Åtvidaberg, which brought together the Company's
exploration team and a handful of external experts with major
mining company exploration experience, relevant to Bergslagen,
volcanogenic massive sulphide mineralisation and modern exploration
technologies.
The output of the workshop was an exciting exploration programme
for this year, with work planned on brownfield and greenfield
targets at Bersbo (prospective for zinc and copper), Mormor
(prospective for copper), and Könserum (prospective for molybdenum,
tungsten, bismuth and rhenium). This year, our work programme has
included further interpretation of historical data, geophysics, and
geological mapping, to fill the knowledge gaps and answer key
questions, with a view to perfecting the exploration model and
defining drill targets.
The Company's exploration team was in the field during May and
June, with July and August being taken up by analysis,
interpretation, and reporting.
Finnish Graphite
The Company's exploration team has been in the field, on and
off, over the last four months, focusing on its Haapamäki,
Pitkäjärvi and Aitolampi prospects.
Further to drilling at Aitolampi earlier this year, composite
samples, sent to SGS Mineral Services in Canada, have been
subjected to more thorough metallurgical testing than was first
planned. The samples tested included an average grade composite for
the main conductive zone, a higher-grade composite for the main
conductive zone/near-surface mineralisation, and a higher-grade
composite for the parallel conductive zones. The testwork programme
has now been completed and a final report received. A further
announcement on the results and next steps will be provided in the
coming weeks.
Financials
-- Loss after taxation attributable to the owners of the parent
company is GBP466,451, GBP133,399 higher than the same period last
year (2016: loss of GBP333,052). The main reasons for the increase
are: higher share based payments charge following the award of
options on 26 January 2017; an increase in salary related costs and
travel costs.
-- Basic/diluted loss per share for the period of GBP0.09
increased by GBP0.02 over the loss per share for the corresponding
period last year (June 2016: GBP0.07).
-- Cash and cash equivalents at 30 June 2017 at GBP2,269,964,
are GBP1,038,370 above the corresponding period last year and
GBP660,745 above the level at 31 December 2016.
-- Intangible assets of GBP7,945,435 are GBP758,859 above the
level at 31 December 2016. Additions amounted to GBP592,587 and
foreign exchange movements of GBP166,272.
-- Share capital and share premium increased over the position
at 31 December 2016 due to the fundraising in May 2017 which raised
GBP1,500,000 before expenses.
-- The translation reserve losses reduced from GBP464,882 at 31
December 2016 to GBP343,466 at 30 June 2017, principally due to the
appreciation of the Swedish krona versus GBP sterling.
Corporate
-- The total number of ordinary shares in circulation at the
date of this announcement is 525,707,254 ordinary shares of GBP0.01
each, with each share carrying the right to one vote. The Company
does not hold any ordinary shares in treasury.
Competent Person Review
The information in this announcement has been reviewed by Mr.
Rasmus Blomqvist, a Competent Person who is a Member of the
Australasian Institute of Mining and Metallurgy. Mr. Rasmus
Blomqvist has sufficient experience, that is relevant to the style
of mineralisation and type of deposit taken into consideration, and
to the activity being undertaken, to qualify as a Competent Person
as defined in the 2012 Edition of the "Australasian Code of
Reporting of Exploration Results, Mineral Resources and Ore
Reserves".
Mr. Rasmus Blomqvist is a full-time employee of Oy Fennoscandian
Resources AB, a 100 per cent owned subsidiary of Beowulf.
Enquiries:
Beowulf Mining plc
Kurt Budge, Chief Executive Tel: +44 (0) 20 3771 6993
Officer
Cantor Fitzgerald Europe
(Nominated Advisor & Broker)
David Porter Tel: +44 (0) 20 7894 7000
Blytheweigh
Tim Blythe / Megan Ray Tel: +44 (0) 20 7138 3204
Cautionary Statement
Statements and assumptions made in this document with respect to
the Company's current plans, estimates, strategies and beliefs, and
other statements that are not historical facts, are forward-looking
statements about the future performance of Beowulf. Forward-looking
statements include, but are not limited to, those using words such
as "may", "might", "seeks", "expects", "anticipates", "estimates",
"believes", "projects", "plans", strategy", "forecast" and similar
expressions. These statements reflect management's expectations and
assumptions in light of currently available information. They are
subject to a number of risks and uncertainties, including, but not
limited to, (i) changes in the economic, regulatory and political
environments in the countries where Beowulf operates; (ii) changes
relating to the geological information available in respect of the
various projects undertaken; (iii) Beowulf's continued ability to
secure enough financing to carry on its operations as a going
concern; (iv) the success of its potential joint ventures and
alliances, if any; (v) metal prices, particularly as regards iron
ore. In the light of the many risks and uncertainties surrounding
any mineral project at an early stage of its development, the
actual results could differ materially from those presented and
forecast in this document. Beowulf assumes no unconditional
obligation to immediately update any such statements and/or
forecasts.
BEOWULF MINING PLC
CONDENSED CONSOLIDATED INCOME STATEMENT
FOR THE SIX MONTHS TO 30 JUNE 2017
(Unaudited) (Unaudited) (Audited)
Year ended
31 Dec
2016
6 months 6 months
to to
Notes 30 June 30 June
2017 2016
GBP GBP GBP
Continuing operations
Administrative expenses (364,522) (316,270) (598,464)
Share-based payment
charge (104,021) (20,055) (40,109)
------------ ------------ ------------
OPERATING LOSS (468,543) (336,325) (638,573)
Finance costs - (180) -
Finance income 1,443 3,238 5,344
------------ ------------ ------------
LOSS BEFORE TAX (467,100) (333,267) (633,229)
Tax - - -
------------ ------------ ------------
LOSS FOR THE PERIOD (467,100) (333,267) (633,229)
------------ ------------ ------------
Loss attributable to:
Owners of the parent (466,451) (333,052) (632,125)
Non-controlling interests (649) (215) (1,104)
------------ ------------ ------------
(467,100) (333,267) (633,229)
------------ ------------ ------------
Loss per share attributable
to the owners of the
parent:
Basic and diluted (pence)
3 (0.09) (0.07) (0.13)
BEOWULF MINING PLC
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the 6 months ended 30 June 2017
(Unaudited) (Unaudited) (Audited)
Year ended
6 months 6 months 31 Dec
to to 2016
Notes 30 June 30 June
2017 2016
GBP GBP GBP
LOSS FOR THE PERIOD (467,100) (333,267) (633,229)
OTHER COMPREHENSIVE INCOME
Items that may be reclassified
subsequently to profit
or loss:
Exchange gains/(losses)
arising on translation
of foreign Operations 121,477 625,995 626,438
Reclassification of revaluation
reserve following permanent
diminution in value of
asset for sale - - 55,664
(121,477) (625,995) (682,102)
TOTAL COMPREHENSIVE (LOSS)/
INCOME FOR THE PERIOD (345,623) 292,728 48,873
---------- ------------ ------------
Loss attributable to:
Owners of the parent (345,035) 292,305 49,005
Non-controlling interests (588) 423 (132)
---------- ------------ ------------
(345,623) 292,728 48,873
---------- ------------ ------------
BEOWULF MINING PLC
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 30 June 2017
(Unaudited) (Unaudited) As at (Audited)
As at 30 June 2016 As at
Notes 30 June 2017 31 Dec 2016
GBP GBP GBP
ASSETS
Non-current assets
Intangible assets 5 7,945,435 6,769,673 7,186,576
Plant, property and equipment 36,930 29,463 23,511
Loans and other financial assets 5,558 5,241 5,503
-------------- ------------------ -------------
7,987,923 6,804,377 7,215,590
Current assets
Trade and other receivables 70,732 55,305 51,766
Cash and cash equivalents 2,269,964 1,231,594 1,609,219
-------------- ------------------ -------------
2,340,696 1,286,899 1,660,985
TOTAL ASSETS 10,328,619 8,091,276 8,876,575
-------------- ------------------ -------------
EQUITY
Shareholder's equity
Share capital 4 5,257,072 4,792,969 5,026,302
Share premium 18,073,471 16,167,782 16,879,241
Revaluation reserve 25,664 (30,000) 25,664
Capital contribution reserve 46,451 46,451 46,451
Share-based payment reserve 408,381 181,098 237,803
Translation reserve (343,466) (464,991) (464,882)
Merger reserve 137,700 137,700 137,700
Accumulated losses (13,533,614) (12,799,098) (13,067,163)
-------------- ------------------ -------------
10,071,659 8,031,911 8,821,116
Non-controlling interest (159,181) (158,038) (158,593)
-------------- ------------------ -------------
TOTAL EQUITY 9,912,478 7,873,873 8,662,523
-------------- ------------------ -------------
LIABILITIES
Current liabilities
Trade and other payables 416,141 217,403 214,052
-------------- ------------------ -------------
TOTAL LIABILITIES 416,141 217,403 214,052
-------------- ------------------ -------------
TOTAL EQUITY AND LIABILITIES 10,328,619 8,091,276 8,876,575
-------------- ------------------ -------------
BEOWULF MINING PLC
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the 6 months ended 30 June 2017
Share Share Revaluation Capital Share-based Translation Merger Accumulated Total Non- Total
capital premium reserve contribution payment reserve reserve losses controlling equity
reserve reserve interest
GBP GBP GBP GBP GBP GBP GBP GBP GBP GBP GBP
At 1 January
2016 4,303,138 15,187,112 (30,000) 46,451 97,796 (1,090,348) - (12,466,046) 6,048,103 (158,461) 5,889,642
Loss for the
period - - - - - - - (333,052) (333,052) (215) (333,267)
Foreign
exchange
translation - - - - - 625,357 - - 625,357 638 625,995
---------- ----------- ------------ ------------- ------------ ------------ -------- ------------- ----------- ------------ ----------
Total
comprehensive
income - - - - - 625,357 - (333,052) 292,305 423 292,728
Transaction
with owners
Issue of share
capital 489,831 1,048,170 - - - - - - 1,538,001 - 1,538,001
Costs
associated
with the issue
of new shares - (67,500) - - - - - - (67,500) - (67,500)
Equity-settled
share-based
payment
transactions - - - - 83,302 - - - 83,302 - 83,302
Acquisition
of subsidiary - - - - - - 137,700 - 137,700 137,700
At 30 June
2016 4,792,969 16,167,782 (30,000) 46,451 181,098 (464,991) 137,700 (12,799,098) 8,031,911 (158,038) 7,873,873
---------- ----------- ------------ ------------- ------------ ------------ -------- ------------- ----------- ------------ ----------
Loss for the
period - - 55,664 - - - - (299,073) (243,409) (1,527) (244,936)
Foreign
exchange
translation - - - - - 109 - - 109 972 1,081
---------- ----------- ------------ ------------- ------------ ------------ -------- ------------- ----------- ------------ ----------
Total
comprehensive
income - - 55,664 - - 109 - (299,073) (243,300) (555) (243,855)
Transaction
with owners
Issue of share
capital 207,833 789,073 - - - - - - 996,906 - 996,906
Costs
associated
with the issue
of new shares - (77,614) - - - - - - (77,614) - (77,614)
Equity-settled
share-based
payment
transactions - - - - (43,193) - - - (43,193) - (43,193)
Acquisition
of subsidiary 25,500 - - - 130,906 - - - 156,406 - 156,406
Release of
charge for
lapsed options - - - - (31,008) - - 31,008 - - -
At 31 December
2016 5,026,302 16,879,241 25,664 46,451 237,803 (464,882) 137,700 (13,067,163) 8,821,116 (158,593) 8,662,523
---------- ----------- ------------ ------------- ------------ ------------ -------- ------------- ----------- ------------ ----------
Loss for the
period - - - - - - - (466,451) (466,451) (649) (467,100)
Foreign
exchange
translation - - - - - 121,416 - - 121,416 61 121,477
---------- ----------- ------------ ------------- ------------ ------------ -------- ------------- ----------- ------------ ----------
Total
comprehensive
income - - - - - 121,416 (466,451) (344,035) (588) (345,623)
Transaction
with owners
Issue of share
capital 230,770 1,269,230 - - - - - - 1,500,000 - 1,500,000
Costs
associated
with the issue
of new shares - (75,000) - - - - - - (75,000) - (75,000)
Equity-settled
share-based
payment
transactions - - - - 170,578 - - - 170,578 - 170,578
At 30 June
2017 5,257,072 18,073,471 25,664 46,451 408,381 (343,466) 137,700 (13,533,614) 10,071,659 (159,181) 9,912,478
---------- ----------- ------------ ------------- ------------ ------------ -------- ------------- ----------- ------------ ----------
BEOWULF MINING PLC
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
For the 6 months ended 30 June 2017
(Unaudited) (Unaudited) (Audited)
6 months 6 months Year
to to ended
30 June 30 June 31 Dec
2017 2016 2016
GBP GBP GBP
Cash flows from operating
activities
Loss before income tax (467,100) (333,267) (633,229)
Depreciation charges 7,438 6,143 12,097
Equity-settled share-based
transactions 104,021 20,055 40,109
Expenses financed by
issue of shares - 12,500 29,375
Reclassification of
revaluation reserve - - 55,664
Finance income (1,443) (3,238) (5,344)
------------ ------------ ----------
(357,084) (297,807) (501,328)
(Increase)/decrease
in trade and other receivables (18,321) 27,079 31,646
Increase/(decrease)
in trade and other payables 150,763 (346) (15,557)
------------ ------------ ----------
Net cash used in operating
activities (224,642) (271,074) (485,239)
------------ ------------ ----------
Cash flows from investing
activities
Purchase of intangible
fixed assets (526,032) (288,111) (622,817)
Purchase of property,
plant and equipment (20,083) (862) (862)
Disposal of fixed asset
investments 7 49,216 50,444
Purchase of subsidiary
undertaking - (46,151) -
Acquisition of subsidiary
cash - 1,055 (50,482)
Interest received 1,443 3,238 5,344
------------ ------------ ----------
Net cash used in investing
activities (544,665) (281,615) (618,373)
------------ ------------ ----------
Cash flows from financing
activities
Proceeds from issue
of shares 1,500,000 1,500,000 2,505,530
Payment of share issue
costs (75,000) (67,500) (145,114)
------------ ------------ ----------
Net cash from financing
activities 1,425,000 1,432,500 2,360,416
------------ ------------ ----------
Increase in cash and
cash equivalents 655,693 879,811 1,256,804
Cash and cash equivalents
at beginning of period 1,609,219 352,914 352,914
Effect of foreign exchange
rate changes 5,052 (1,131) (499)
------------ ------------ ----------
Cash and cash equivalents
at end of period 2,269,964 1,231,594 1,609,219
------------ ------------ ----------
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL
INFORMATION
For the 6 months ended 30 June 2017
1. Nature of Operations
Beowulf Mining plc (the "Company") is domiciled in England and
Wales. The Company's registered office is 201 Temple Chambers, 3-7
Temple Avenue, London, EC4Y 0DT. This consolidated financial
information comprises the Company and its subsidiaries
(collectively the 'Group' and individually 'Group companies'). The
Group is engaged in the acquisition, exploration and evaluation of
natural resources assets and has not yet generated revenues.
2. Basis of preparation
The condensed consolidated financial information has been
prepared on the basis of the recognition and measurement
requirements of International Financial Reporting Standards (IFRS)
as adopted by the European Union (EU) and implemented in the UK.
The accounting policies, methods of computation and presentation
used in the preparation of the interim financial information are
the same as those used in the Group's audited financial statements
for the year ended 31 December 2016.
The financial information in this statement does not constitute
full statutory accounts within the meaning of Section 434 of the UK
Companies Act 2006. The financial information for the six months
ended 30 June 2017 is unaudited, and has not been reviewed by the
auditors. The financial information for the year ended 31 December
2016 has been derived from the Group's audited financial statements
for the year. The auditor's report on the statutory financial
statements for the year ended 31 December 2016 was unqualified and
did not contain any statement under sections 498 (2) or (3) of the
Companies Act 2006.
The financial statements are presented in GB Pounds Sterling.
They are prepared on the historical cost basis or the fair value
basis where the fair valuing of relevant assets and liabilities has
been applied.
3. Loss per share
Basic loss per share is calculated by dividing the loss
attributable to ordinary owners of the parent by the weighted
average number of ordinary shares of 508,143,152 (30 June 2016:
464,293,388 and 31 December 2016: 502,630,331) outstanding during
the period. There is no difference between the basic and diluted
loss per share.
4. Called up share capital
(Unaudited) (Unaudited) (Audited)
30 June 30 June 31 Dec
2017 2016 2016
GBP GBP GBP
Allotted, issued and
fully paid
Ordinary shares of 1p
each 5,257,072 4,792,969 5,026,302
The number of shares in issue was as follows:
Number
of shares
Balance at 1 January 2016 430,313,824
Issued during the period 48,983,174
------------
Balance at 30 June 2016 479,296,998
Issued during the period 23,333,333
------------
Balance at 31 December 2016 502,630,331
Issued during the period 23,076,923
------------
Balance at 30 June 2017 525,707,254
------------
5. Intangible Assets: Group
Exploration costs As at As at As at
30 June 30 June 31 Dec
2017 2016 2016
(Unaudited) (Unaudited) (Audited)
GBP GBP GBP
Cost
At 1 January 7,186,576 5,588,270 5,588,270
Additions for the period 592,587 560,204 968,460
Foreign exchange movements 166,272 621,199 629,846
7,945,435 6,769,673 7,186,576
============ ============ ============
The net book value of exploration costs is comprised of
expenditure on the following projects:
As at As at As at
30 June 30 June 31 Dec
2017 2016 2016
(Unaudited) (Unaudited) (Audited)
GBP GBP GBP
Project Country
Kallak Sweden 6,695,760 6,294,271 6,438,283
Nautijaur Sweden 27,202 24,859 24,912
Åtvidaberg Sweden 199,883 78,529 153,927
Ågåsjiegge Sweden 7,421 7,633 7,257
Sala Sweden 2,619 1,913 2,372
Haapamäki Finland 174,104 112,939 141,944
Kolari1 Finland 117,145 75,377 99,554
Piippumäki Finland 140,282 87,625 119,087
Viistola Finland 125,844 86,527 107,369
Pitkäjärvi Finland 455,175 - 91,871
7,945,435 6,769,673 7,186,576
============ ============ ==========
Total Group exploration costs of GBP7,945,435 are currently
carried at cost in the financial statements. During the period, no
impairment provision was recognised (2016: GBPNil).
Accounting estimates and judgements are continually evaluated
and are based on a number of factors, including expectations of
future events that are believed to be reasonable under the
circumstances.
The most significant risk currently facing the Group is that it
does not receive an Exploitation Concession for Kallak. The Company
originally applied for the Exploitation Concession in April 2013
and throughout 2016, and since the year-end, management have
actively sought to progress the application, engaging with the
various government bodies and other stakeholders. These activities
are summarised above.
Kallak is included in condensed financial statements as at 30
June 2017 as an intangible exploration licence with a carrying
value of GBP6,695,760. Management are required to consider whether
there are events or changes in circumstances that indicate that the
carrying value of this asset may not be recoverable. Management
have considered the status of the application for the Exploitation
Concession and in their judgement, they believe it is appropriate
to be optimistic about the chances of being awarded the
Exploitation Concession and thus have not impaired the project.
6. Availability of interim report
A copy of these results will be made available for inspection at
the Company's registered office during normal business hours on any
weekday. The Company's registered office is at 207 Temple Chambers,
3-7 Temple Avenue, London, EC4Y 0DT. A copy can also be downloaded
from the Company's website at www.beowulfmining.com. Beowulf Mining
plc is registered in England and Wales with registered number
02330496.
** Ends **
This information is provided by RNS
The company news service from the London Stock Exchange
END
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