TIDMBEM
RNS Number : 4259Q
Beowulf Mining PLC
26 February 2021
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.
26 February 2021
Beowulf Mining plc
("Beowulf" or the "Company")
Unaudited Preliminary Financial Results for the year ended 31
December 2020
Beowulf (AIM: BEM; Spotlight: BEO), the mineral exploration and
development company, announces its unaudited preliminary financial
results for the year ended 31 December 2020.
Overview of Activities in the Period
Kosovo
-- On 17 February 2020, the Company announced that Vardar
Minerals Limited ("Vardar") had identified a copper-zinc
exploration target at Mitrovica and that the Company had invested a
further GBP50,000 in Vardar, increasing the Company's ownership
from 41.5 per cent to 42.2 per cent.
-- On 25 March 2020, the Company invested a further GBP30,000 in
Vardar, alongside founders and existing shareholders in Vardar, to
fund a soil sampling programme across the Majdan Peak gold target
at Mitrovica. The resulting investment maintained the Company's
ownership interest in Vardar at 42.2 per cent.
-- On 1 June 2020, results from the soil sampling programme were
announced. An extensive anomaly has been identified over an area
approximately 1400 metres x 700 metres, with individual soil
samples returning up to 0.36 grammes per tonne ("g/t") gold.
Furthermore, a new lead-zinc-copper-gold target has been identified
to the south of Majdan Peak, of significance given its proximity to
the Stan Terg mine.
-- On 6 July 2020, Beowulf announced results from the grab
sampling programme completed across the Majdan Peak .
-- On 13 August 2020, the Company announced that it had invested
GBP300,000 in Vardar, increasing the Company's ownership of Vardar
from 42.2 per cent to 46.1 per cent, with the funds being used for
geophysical surveys.
-- Over the period from October 2020 to December 2020, the
Company announced results from Induced Polarisation ("IP") and
resistivity surveys over the Mitrovica and Viti licences.
Sweden
-- On 4 February 2020, the Company announced that in response to
the CEO's letter sent to Minister Ibrahim Baylan, Minister for
Business, Industry and Innovation, in December 2019, the Government
stated it was not able to comment on when a decision, in respect of
the Concession for Kallak, is expected to be taken, however, the
Government had taken careful note of the information provided by
the Company.
-- The Company stated, on 13 February 2020, that contrary to
media reports, no legal action had been taken against the
Government, but that all options with regard to taking legal action
remain under active consideration.
-- On 26 May 2020, the Company announced that a Parliamentary
Question regarding Kallak had been put to Minister Baylan by Mr
Lars Hjälmered, a Moderate Party Member in the Swedish Parliament.
Mr Hjälmered had asked a similar question of Minister Baylan in
late 2019.
-- In advance of Minister Baylan's response, on 2 June 2020,
Kurt Budge, CEO sent a letter to him, informing him that Beowulf
shareholders demand that the Government be fully transparent now
and remove all uncertainty as to when a decision on Kallak will be
taken.
In addition, the CEO wrote that the Company is ready to play its
part in Sweden's post COVID-19 economic recovery, to advance Kallak
in partnership with the community in Jokkmokk, which includes Sami
reindeer herders.
-- Also on 2 June 2020, Minister Baylan provided his answer to
Mr Hjämered, explaining that the Kallak case contains extensive
data with several complex issues, such as trade-offs according to
the Environmental Code between several different national
interests, which he said obviously affects the processing time for
handling the application.
Minister Baylan continued, saying that the starting point for
the Government's process is always that it should take place
quickly, efficiently and without compromising legal certainty. He
was not prepared to comment further on when the Kallak case would
be sufficiently prepared, such that a decision could be made.
-- On 27 May 2020, the Company announced that it had a awarded a
drilling contract for Kallak to Kati Oy. The work programme,
scheduled for Autumn 2020, now postponed until later in 2021, will
determine if a 3D seismic model can be constructed, using the
established seismic characteristics of the Kallak deposit, and
whether the 3D model can be used to help define additional iron ore
resource.
-- On 17 September 2020, Beowulf released the findings of an
expert market assessment by Dr. Bo Arvidson based on the results of
laboratory and pilot plant testwork, which identified Kallak's 71.5
per cent magnetite concentrate to be market leading among known
current and planned future producers.
-- On 17 December 2020, Beowulf announced that Kurt Budge, CEO
had written to the Swedish Government regarding the Kallak and
UNESCO Consultation.
-- The CEO's letter followed an announcement on the 27 November
2020, in which the Company published the statement of The
Constitutional Committee ("KU") detailing its review findings of
the Swedish Government's handling of the Company's application for
an Exploitation Concession for Kallak.
Finland
-- On 18 May 2020, the Company provided an update on Oy
Fennoscandian Resources AB ("Fennoscandian"), the Company's
graphite business, which is pursuing a strategy to develop a
resource/production base of natural flake graphite that can provide
'security of supply' and enable Finland to achieve its ambition of
self-sufficiency in battery manufacturing. The Company is a
recipient of Business Finland funding, which is supporting
Fennoscandian to move downstream, and develop its knowledge in
processing and manufacturing value-added graphite products.
Corporate
-- On 13 August 2020, the Company announced it had secured
bridge loan financing in Sweden of SEK 12 million (approximately
GBP1.0 million) from Nordic investors, with GBP300,000 invested in
Vardar's geophysics programme.
-- On 6 November 2020, the Company announced that it would
conduct an Open Offer of up to 225,841,752 new Ordinary Shares to
Qualifying Shareholders at 3.16 pence per Share (the "Offer Price")
on a pre-emptive basis to raise up to approximately GBP7.3 million
(gross) (the "Open Offer").
-- On 10 November 2020, the Company announced that Göran Färm
was stepping down from the Board and as Non-Executive Chairman, and
that Mr Sven Otto Littorin had been appointed as Non-Executive
Chairman and a Director of the Company.
-- On 21 December 2020, the Company closed a fully subscribed
Capital Raising of approximately GBP7.4 million before expenses
(approx. SEK 83 million).
-- At 31 December 2020 there were 592,321,687 Swedish Depository
Receipts representing 71.52 per cent of the issued share capital of
the Company. The remaining issued share capital of the Company is
held in the UK.
Post Period
-- On 8 February 2021, Beowulf announced a further GBP200,000
investment in Vardar, increasing its ownership from 46.1 per cent
to 48.4 per cent.
Kurt Budge, Chief Executive Officer of Beowulf, commented:
"Despite the challenges of 2020, Beowulf finished the year with
a fully subscribed Capital Raising.
"Beowulf has started 2021 with focus and the cash to fund
investment plans across its diversified and attractive portfolio,
with growth options in all business areas.
"In Kosovo, we are finalising plans to drill the plethora of
exploration targets identified at Mitrovica and Viti, and will be
providing a more detailed update in the coming weeks.
"We have seen market values for natural flake graphite producers
increase significantly and, as batteries are centre-stage of the
Green Transition, in Finland we are accelerating development plans
for Fennoscandian Resources, focusing on both natural flake
graphite production and a Circular Economy/recycling strategy to
produce high-value graphite products.
"In Sweden, on Tuesday this week, Minister Baylan spoke at the
Future Mine & Mineral 2021 Conference. He acknowledged the need
for more raw materials and put Sweden at the forefront of
electrification, digitalisation and automation.
"Also, H2 Green Steel, situated in Norrbotten County, announced
a EUR2.5 billion investment and plans to produce 5 million tonnes
of green steel by 2030. It goes without saying, you need
high-quality iron ore to manufacture high-quality steel.
"Norrbotten is Sweden's powerhouse, where mining, power,
transport, manufacturing and innovation are coming together to
deliver a sustainable economic future for the region and Europe.
Kallak is part of that future.
"If you can expediently permit steel plants like H2 Green Steel
and HYBRIT, you need to treat equally the companies and investors
that are developing the mines that will feed them and ensure
security of iron ore supply.
"Kallak can produce a 'market leading' concentrate of 71.5 per
cent iron content and the Company has invested over SEK 80 million
in the project. The investment in building a mine will be billions
of SEK and Jokkmokk Municipality needs this economic stimulus.
"The Company has been in communication with UNESCO regarding its
review of Kallak and we now wait on their comments to the
Government. Since the Constitutional Committee statement last
November, political parties outside of Government are taking a
greater interest in our case and, with the support of our advisers,
we continue to inform and educate on the facts about Kallak and
dispel the perceptions that exist.
"Over the last three year, Beowulf has contributed to the OECD's
studies on the mining industry in Sweden, including the inclusion
of the Sami in regional development in Sweden. The Company is
taking the OECD's findings and incorporating them into draft
development frameworks for Kallak that we will share with
interested parties.
"Since I have been involved with Kallak, the Company has shown
nothing but respect to local reindeer herders and we remain
committed to safeguarding their traditional livelihoods. We will
continue to listen and to learn.
"Last Tuesday was a busy day. The Fraser Institute published its
Annual Mining Survey 2020 with Sweden ranked 36(th) position on
Investment Attractiveness, falling 26 places in one year.
"Sweden ranked 21(st) in 2018. The erosion of Sweden's
pre-eminent status continues unabated, despite ministerial changes,
yet the discussion about a Green Transition to tackle Climate
Emergency, achieved only with more mines, is louder than ever
before.
"The Minister suggested that, in the coming weeks, he would
present findings of reviews undertaken to develop more robust
legislation. He wants Sweden to be the role model for
sustainability. The Swedish mining sector will be anticipating his
words.
"Beowulf has a busy year ahead and our intent is to make
significant progress.
"I want to again thank our shareholders for their support in
last year's Capital Raising, many of whom are longstanding and have
stuck with the Company. The Company does not take your support for
granted.
"We look forward to updating the market on further developments
as they happen."
Kurt Budge, VD Beowulf, kommenterade:
"Trots de utmaningar som 2020 inneburit avslutade Beowulf året
med en fulltecknad kapitalanskaffning.
"Beowulf har inlett 2021 med fokus och kassa att finansiera
investeringsplaner i sin diversifierade och attraktiva portfölj,
med tillväxtalternativ inom alla affärsområden.
"I Kosovo färdigställer vi planer för att borra en rad
prospekteringsmål som identifierats vid Mitrovica och Viti, och vi
kommer att ge en mer detaljerad uppdatering under de kommande
veckorna.
"Vi har sett marknadsvärden för producenter av naturlig
flinggrafit öka avsevärt och eftersom batterier är centrala för den
gröna omställningen accelererar vi utvecklingsplanerna i Finland
genom Fennoscandian Resources, med fokus på både produktion av
naturlig flinggrafit och en strategi för cirkulär
ekonomi/återvinning, för att producera högvärdiga
grafitprodukter.
"Under tisdagen den här veckan talade näringsminister Baylan vid
konferensen Future Mine & Mineral 2021 i Sverige. Han
bekräftade behovet av mer råvaror och satte Sverige i spetsen för
elektrifiering, digitalisering och automatisering.
"H2 Green Steel, i Norrbottens län, tillkännagav också en
investering på 2,5 miljarder euro och planer på att producera 5
miljoner ton grönt stål till 2030. Det är uppenbart att det kommer
behövas järnmalm av hög kvalitet för att tillverka högkvalitativt
stål.
"Norrbotten är Sveriges kraftcentrum, där gruvdrift, energi,
transport, tillverkning och innovation samlas för att leverera en
hållbar ekonomisk framtid för regionen och Europa. Kallak är en del
av den framtiden.
"Om man på ett ändamålsenligt sätt kan tillåta stålverk som H2
Green Steel och HYBRIT måste man också säkerställa lika behandling
av de företag och investerare som utvecklar de gruvor som kommer
att mata stålverken och därmed säkra tillförlitlig leverans av
järnmalm.
"Kallak kan producera ett marknadsledande koncentrat på 71,5
procent järninnehåll och Bolaget har investerat över 80 miljoner
SEK i projektet. Investeringen för att bygga en gruva kommer att
uppgå till flera miljarder SEK och Jokkmokks kommun behöver denna
ekonomiska stimulans.
"Bolaget har varit i kontakt med UNESCO angående deras
granskning av Kallak och vi väntar nu på deras kommentarer till
regeringen. Sedan uttalandet från konstitutionskommittén i november
förra året fattar politiska partier utanför regeringen ett större
intresse för vårt ärende och med stöd av våra rådgivare fortsätter
vi att informera och utbilda om fakta kring Kallak och ändra de
uppfattningar som finns.
"Under de senaste tre åren har Beowulf deltagit i OECD:s studier
om gruvindustrin i Sverige, inklusive inkluderingen av samerna i
regional utveckling i landet. Bolaget tar OECD:s resultat och
införlivar dem i utkast till utvecklingsramar för Kallak som vi
kommer att dela med intresserade parter.
"Sedan jag har varit inblandad i Kallak har Bolaget inte visat
något annat än respekt för lokala renskötare och vi fortsätter att
vara engagerade i att skydda deras traditionella försörjning. Vi
kommer att fortsätta att lyssna och lära.
"Förra tisdagen var en hektisk dag. The Fraser Institute
publicerade sin årliga gruvundersökning för 2020 med Sverige rankat
på plats 36 för investeringsattraktivitet, ett tapp på 26 platser
på ett år."
"Sverige rankades på plats 21 år 2018. Förlusten av Sveriges
framträdande status fortsätter i oförminskad takt, trots
ministerförändringar, men diskussionen om en grön omställning för
att hantera klimatnödläget, möjligt enbart med fler gruvor, är mer
högljudd än någonsin.
"Näringsministern föreslog att han under de närmaste veckorna
skulle presentera resultaten av de granskningar som gjorts för att
utveckla mer robust lagstiftning. Han vill att Sverige ska vara
förebilden för hållbarhet. Den svenska gruvsektorn kommer att
invänta hans ord.
"Beowulf har ett hektiskt år framför oss och vi avser att göra
betydande framsteg.
"Jag vill än en gång tacka våra aktieägare för deras stöd i
förra årets kapitalanskaffning, varav många varit med länge och
stått fast vid Bolaget. Bolaget tar inte ert stöd för givet.
"Vi ser fram emot att löpande uppdatera marknaden om den
fortsatta utvecklingen."
Financial
-- On 13 August 2020, further investment was made in Vardar
which increased the holding in Vardar to approximately 46.1 per
cent. On the 8 February 2021, another investment was made in Vardar
for GBP200,000 to increase the holding in Vardar to 48.4 per
cent.
-- The consolidated loss increased in the year from GBP428,707
in 2019 to GBP1,294,691 in 2020. This increase is in part
attributable to a higher impairment charge on Ågåsjiegge,
Joutsijärvi, Polvela and Tammijärvi (GBP98,799) compared to the
impairment charge in the prior year on Sala (GBP10,270). Further
contributions to the increase include a GBP563,431 fair value gain
on further investments in Vardar in the prior year compared to no
fair value gain in the current year now the entity is considered a
subsidiary for accounts purposes and a finance charge of GBP203,321
in relation to the Bridging Loan which was issued in the year.
-- The administration expenses increased in the year from
GBP904,667 to GBP1,005,547, due mostly to more corporate time being
devoted to the Capital Raising and less time being spent on
projects, the result of which was that a lower level of underlying
exploration cost was capitalised.
-- Consolidated basic and diluted loss per share for the 12
months ended 31 December 2020 was 0.19 pence (2019: loss of 0.04
pence).
-- GBP4,329,414 in cash was held at the year end (2019: GBP1,124,062).
-- At 31 December 2020 trade and other receivables of the Group
included an amount of GBP1,392,081 relating to proceeds received in
January 2021 from issues of shares before the year end (2019:
GBPnil).
-- The translation reserve losses attributable to the owners of
the parent decreased from GBP1,291,068 at 31 December 2019 to
GBP457,813 at 31 December 2020. Much of the Company's exploration
costs are in Swedish Krona which has strengthened against the pound
since 31 December 2019.
-- At 31 December 2020, there were 592,321,687 Swedish
Depository Receipts representing 71.52 per cent of the issued share
capital of the Company. The remaining issued share capital of the
Company is held in the UK.
Operational
Kosovo
Overview
-- Vardar gives Beowulf strategic investment exposure to the
highly prospective Tethyan Belt. Vardar has two exploration licence
areas, Mitrovica and Viti.
-- During 2020, Vardar made significant progress, with
exploration results developing the Company's understanding of the
porphyry potential at both projects.
-- Porphyry deposits are exceptionally large, low grade,
polymetallic systems, that typically contain copper along with
other metals, such as gold, silver, zinc and lead. Examples in the
region include the Kiseljak deposit in Serbia (Inferred Mineral
Resource: 459 million tonnes at 0.22 per cent. copper, 0.2 grammes
per tonne gold. Source: Dunav Resources' announcement, June 2014)
and the Skouries high grade gold-copper deposit in Greece (Measured
and Indicated Mineral Resource: 289 million tonnes at 0.43 per
cent. copper and 0.58 grammes per tonne gold. Inferred Mineral
Resource: 170 million tonnes at 0.34 per cent. copper and 0.31
grammes per tonne gold. Source: Eldorado Gold).
Investments during the period
-- On 13 August 2020, the Company announced that it had secured
bridge loan financing in Sweden of SEK 12 million (approximately
GBP1.0 million) from Nordic investors, with GBP300,000 invested in
Vardar increasing the Company's ownership of Vardar from 42.2 per
cent to 46.1 per cent.
Mitrovica Licence
The Mitrovica licence is located immediately to the west and
north west of the world class Stan Terg former lead-zinc-silver
mine, which dates back to the 1930s. With current reserves of 29
million tonnes ("Mt") of ore at 3.45 per cent Pb, 2.30 per cent Zn,
and 80 g/t Ag (ITT/UNMIK 2001 report), together with the past
production of approximately 34 Mt of ore, the deposit represents an
important source of metals in the south eastern part of Europe
(Source: Strmić Palinkaš S., Palinkaš L.A et al, 2013. Metallogenic
Model of the Trepča Pb-Zn-Ag Skarn Deposit, Kosovo: Evidence from
Fluid Inclusions, Rare Earth Elements, and Stable Isotope Data.
Economic Geology, 108, 135-162).
The licence is showing its potential for a range of porphyry
related mineralisation types, including the Majdan Peak
high-sulphidation epithermal gold target, the Wolf Mountain
low-sulphidation lead-zinc-silver target and the Mitrovica South
base and precious metal target in the southern part of the licence
area. Vardar believes all the targets are related to a potentially
much larger porphyry style mineralised system.
Majdan Peak - Gold Target - Overview
An extensive gold anomaly has been identified over an area
approximately 1,400 m x 700 m, with individual soil samples
returning up to 0.36 g/t gold. A number of grab samples returned
high grade gold results, which correlated well with gold in soils
and alteration intensity and confirmed the significant scale of the
anomaly, which remains open to the east.
The scale and size of the anomaly, together with coincidental
multi-element anomalies and extensive hydrothermal alteration, are
comparable to significant high-sulphidation epithermal gold
deposits within the region. The gold anomaly correlates well with
anomalous arsenic, copper, lead, mercury, strontium and antimony
and geological mapping has shown the presence of advanced argillic
alteration.
Mitrovica South - Lead-Zinc-Copper-Gold - Overview
A new lead-zinc-copper-gold target has been identified to the
south of Majdan Peak, of particular significance given its
situation, approximately 4 km from Stan Terg. Vardar has mapped
zinc mineralisation associated with trachyte dykes.
Soil sampling results indicate the potential for a large
mineralised system, having identified distinctive zinc, copper,
lead, silver, and gold anomalies in the southern part of the
licence, extending laterally from known mineralisation, suggesting
that the system may be larger than indicated by initial geological
mapping.
Drill testing was designed to test the extent and type of
alteration associated with an extensive 3 km gossanous outcrop,
which had previously returned anomalous copper and gold
concentrations in rock grab samples. In addition, soil samples were
collected to determine the extent of possible anomalous metal
concentrations over the target area.
1 June 2020 - Majdan Peak Shows Epithermal Gold Potential
-- Extensive gold anomaly identified over an area approximately
1400 metres x 700 metres, with individual soil samples returning up
to 0.36 g/t.
-- The gold anomaly correlates well with anomalous Arsenic,
Copper, Lead, Mercury, Strontium and Antimony, and geological
mapping has shown the presence of extensive argillic
alteration.
-- The scale and size of the anomaly, together with coincidental
multi-element anomalies and extensive hydrothermal alteration, are
comparable to significant high-sulphidation epithermal gold
deposits within the region.
-- Furthermore, a new lead-zinc-copper-gold target has been
identified to the south of Majdan Peak, of particular significance
given its situation, approximately 3 kilometres from Stan Terg.
6 July 2020 - Majdan Peak Gold Target - Grab Sample Results
-- 42 samples have assayed in excess of 0.1 g/t out of a total
of 96 samples collected from available outcrop and subcrop.
-- Anomalous results correlate well with gold in soils and
alteration intensity and confirm the significant scale of the
Majdan Peak gold anomaly, an area 1400 x 700 metres, which remains
open to the east.
-- Sample results over 1 g/t gold include: 7.2 g/t; 4.6 g/t; 2.8
g/t; 2.0 g/t; 1.5 g/t; 1.3 g/t; 1.3 g/t; and 1.1 g/t.
-- In addition to the primary gold target, a new multi-element
anomaly has been delineated to the south of the main peak. This
anomaly correlates well with anomalous rock grab samples (including
individual samples with 0.79 g/t gold), with galena (lead sulphide)
veins apparent in some of the outcropping gossans.
5 November 2020 - Majdan Peak Gold Target Shows IP Anomalies For
Drill Testing
-- Highly anomalous IP chargeability targets have been mapped
for both Majdan Peak and the target area directly south, Majdan
Peak South.
-- Chargeability targets correlate well with anomalous rock and
soil samples, mapped alteration and zones of demagnetisation
identified in the recent high-resolution drone magnetic survey.
-- Importantly, the IP anomalies demonstrate depth extent
suggesting that the mapped surficial gold mineralisation is related
to a potentially large underlying source (over 700 metres in strike
length with significant width and thickness).
-- Zones of high resistivity correlate well with mapped
silicification and advanced argillic alteration which appear to
overlay the main IP chargeability target, as would be expected in a
typical high-sulphidation gold deposit.
-- Shallow IP anomalies follow structural trends mapped in the
magnetic data suggesting a structural control to the distribution
of mineralisation which may link up to the carbonate replacement
lead-zinc ore bodies of the neighbouring Stan Terg deposit.
Wolf Mountain - Lead/Zinc/Silver Target - Overview
The Wolf Mountain target forms a prominent outcropping feature,
with strike length of more than 4 km and width ranging from almost
20 m to greater than 300 m. It represents a hydrothermal breccia
zone with stockworks, which outcrop as a gossan, with
iron-manganese oxides and hydroxides. The peripheral parts of the
zone are characterised by intense silicification corresponding to
fold structures which control the development of the hydrothermal
breccia.
The mineralisation is structurally controlled, and for most of
the target mineralisation is developed in the basement, broadly
following a tectonic contact between ultramafic rocks and phyllite,
with the bulk of mineralisation developed within the ultramafic
units. Mineralisation is likely vein/replacement-type related to
Oligocene magmatic activity responsible for the hydrothermal
systems mapped in the southern portion of the licence area.
Vardar has completed 1,609 m of drilling and a total of 278.5 m
of trenching, carried out over outcropping stockwork and
hydrothermal breccia mineralisation. Drilling and trenching results
have confirmed extensive lead-zinc-silver mineralisation over an
area of 800 m in length and 400 m in width in its northern part,
with significant potential for high grade feeder structures.
23 October 2020 - Geophysics Results Define High Priority Drill
Targets
-- Highly anomalous IP chargeability zones, considered high
priority targets for drill testing, have been defined beneath areas
of laterally extensive Pb-Zn gossans and hydrothermal
alteration.
-- The IP anomalies are located below, often straddling, the
contact between younger Oligo-Miocene ("O-M") volcanoclastic rocks
and ultramafic ("UM") basement, in agreement with mapped and drill
tested mineralisation, adding further support for a source of the
observed mineralisation.
-- Importantly, anomalies follow established regional structural trends suggesting they may be representative of high-grade Pb-Zn-Ag feeder structures, often a characteristic of the deposit type.
-- Resistivity results correlate very well with geological
mapping, drilling and trenching, delineating the lateral and
vertical extent of the low resistivity volcanoclastic units over
the higher resistivity UM basement.
1 December 2020 - Geophysical Anomaly Identified at Wolf
Mountain East Provides More Drill Targets
-- An exceptional high chargeability anomaly identified to the
east of the main Wolf Mountain prospect, correlating with anomalous
soil samples (up to 1.0 per cent zinc ("Zn") and 0.5 per cent lead
("Pb")) and rock samples from gossans (including 3.5 per cent Zn,
1.8 per cent Pb, 93 grammes per tonne ("g/t") silver ("Ag");
-- The chargeable source follows a prominent northwest trending
structure which connects to the Zijaca deposit (non-JORC compliant
5.2 million tonnes ("Mt") containing 2.83 per cent Zn, 2.83 per
cent Pb and 16 g/t Ag) located just two kilometres ("km") to the
southeast and it remains open ended to the northwest; and
-- Results to date suggest that the Wolf Mountain prospect
consists of several structurally controlled targets, often
occurring along geological contacts in the basement rocks and
covering a larger area than previously considered.
Viti Licence
The Viti project is situated in south-eastern Kosovo and
encompasses an interpreted circular intrusive, indicated by
regional airborne magnetic data. There is evidence of intense
alteration typically associated with porphyry systems, with several
copper occurrences and stream sample anomalies in proximity to, and
within the project area. In the south-east of the project area,
reconnaissance mapping has identified several zones of intense
argillic alteration, hydrothermal breccias and iron oxide
stockworks.
In addition, Viti is prospective for lithium-boron
mineralisation, with a geological setting similar to Rio Tinto's
Jadar deposit in Serbia.
Orientation drilling at Viti has intersected the upper part of a
copper-gold porphyry system. Two stratigraphic holes, totalling 439
m , drilled to test for alteration type and potential associated
mineralisation in the gossanous zone, identified highly altered
trachyte porphyry dykes with associated copper and gold
mineralisation, including down the hole intersections of 1 m at 0.5
g/t and 10 m at 0.12 g/t.
26 November 2020 - Geophysical Anomalies Identified at Viti
Project Present Compelling Drill Targets
-- A detailed 3D IP-DC survey has delineated high chargeability
anomalies associated with an extensive NNW trending zone of
alteration and anomalous multi-element soil sample and rock grab
sample results.
-- The newly defined high chargeability anomalies sit in close
proximity to gold and copper mineralisation, associated with
altered porphyritic trachyte dykes, intersected by stratigraphic
drilling in 2019.
-- The anomalies could represent higher grade mineralised zones
and Vardar is now planning to drill two short holes to test
chargeability 'hot spots'.
Plans for 2021
-- Beowulf announced on 8 February 2021, that the Company had
invested GBP200,000 to fund preparatory works, building access
roads and drilling platforms, across the Mitrovica licence in
northern Kosovo, lead-zinc targets at Wolf Mountain and gold
targets at Majdan Peak. It is hoped that drilling can commence in
early Spring 2021.
-- For Viti, a plan is being worked to drill two diamond holes
into Viti SE, for drone magnetics at Viti North and to carry out
geophysical surveys. This work would follow drilling at Mitrovica
and be carried out later in 2021.
-- With continued exploration success, the Company will continue
to fund work at Mitrovica and Viti, the goal being to focus on
discovering a deposit(s) and thereafter define a mineral
resource(s).
Sweden
-- During the year, the Company's focus remained on Kallak and
the application for an Exploitation Concession (the "Concession")
for Kallak North. Beowulf continued to engage with the authorities
in Sweden, but progress was hampered by the COVID-19 and the
Swedish Government's focus diverted to fighting the pandemic.
-- The Company's application remained with the Government
through 2020, and as such, Swedish authorities other than the
Government were not actively engaged in the permitting process.
-- The Constitutional Committee ("KU"), which has been reviewing
the Swedish Government's handling of the Company's application for
an Exploitation Concession for Kallak North met 26 November 2020
and made the following statement (translation):
"KU has examined the application for a processing concession for
Kallak. In the Government case, no visible administrative measures
were implemented for almost three years. This means a delay that is
not acceptable, according to KU.
It also appears that the applicant has on several occasions
asked the Ministry of Trade and Industry for a meeting. The
Ministry has then stated that this is not possible because the
issue concerns a forthcoming Government decision and is a matter
under consideration.
KU notes that the Ministry management's statement does not seem
to be in line with what the Prime Minister has stated. The
Government Offices thus seem to lack a common approach to the
possibility for parties in administrative matters to have a meeting
with the responsible ministry."
While the KU's statement will have no bearing on the final
decision, the Company now hopes that a decision will be
'forthcoming' as previously stated by the Government.
-- The Company announced, on 17 September 2020, the findings of
an expert market assessment by Dr. Bo Arvidson, which investigated
the market potential of future products from the Kallak, based on
the results of laboratory and pilot plant testwork conducted to
date.
Highlights included:
o Exceptionally high-grade magnetite concentrate at 71.5 per
cent iron content with minimal detrimental components, which would
make Kallak the market leading high-grade product among known
current and planned future producers, as demand for high-quality
feedstock and therefore magnetite increases as producers look to
protect the environment by improving energy efficiency, minimising
waste and the impact of waste disposal.
o The next best magnetite product was shown to be LKAB's (the
state-owned Swedish iron ore company), whose production of
magnetite fines with a target specification of 70.7 per cent iron
had been regarded as unique, until now, due to its exceptionally
high iron content.
o Kallak magnetite concentrate was shown to be able to reduce
the carbon footprint of traditional steel making, improve energy
efficiency in any downstream process and reduce waste, due to
magnetite's inherent energy content, resulting in lower energy
demand for steel manufacturing than current common practice using
feedstock of 80 per cent hematite and 20 per cent magnetite.
Finland
-- On 18 May 2020, the Company provided an update on the
activities of Fennoscandian. Since Fennoscandian was acquired in
January 2016, Beowulf has invested over Euros 1.56 million in
graphite exploration, resource development, metallurgical testwork
and the assessment of market applications for graphite from its
Aitolampi project, including Lithium Ion Battery ("LIB")
applications.
-- Fennoscandian continues to develop a 'resource footprint' of
natural flake graphite to provide 'security of supply' to Finland's
emerging battery sector and to benefit from Business Finland
funding, as the Company seeks to move downstream and develop its
knowledge in processing and manufacturing battery grade and
value-added graphite products.
-- Test work on a composite sample for Karhunmäki, a new
graphite prospect, was found by Fennoscandian to produce a
concentrate grade of 96.4 per cent Total Graphitic Carbon ("TGC"),
with 51.3 per cent large/jumbo flakes (+180 micron). The company
has applied for an Exploration Permit for the project.
Competent Person Review
The information in this announcement has been reviewed by Mr.
Chris Davies, a Competent Person ("CP"), who is a Fellow of the
Australasian Institute of Mining and Metallurgy. Mr. Davies has
conducted a desktop review of source documents and data which
underpin the technical statements disclosed herein and approves the
disclosure of technical information in the form and context in
which it appears in this announcement, in his capacity as a CP as
required under the AIM rules. Mr. Davies has visited Vardar's
Mitrovica and Viti projects in Kosovo.
Mr. Davies has sufficient experience, that is relevant to the
content of this announcement, to qualify as a CP as defined in the
2012 Edition of the "Australasian Code of Reporting of Exploration
Results, Mineral Resources and Ore Reserves".
Mr. Davies BSc (Hons) Geology, MSc DIC Mineral Exploration,
FAusIMM, is a Non-executive Director of Beowulf and is an
exploration/economic geologist with more than 35 years' experience
in the mining sector.
About Beowulf Mining plc
Beowulf Mining plc ("Beowulf" or the "Company") is an
exploration and development company, listed on the AIM of the
London Stock Exchange and the Spotlight Exchange in Sweden. The
Company listed in Sweden in 2008 and is approximately 71.5 per cent
owned by Swedish shareholders.
Beowulf's vision is to build a sustainable and innovative mining
company, which creates value by developing mining assets in
partnership with communities, delivering production and generating
cash flow, and in so doing meets society's ongoing need for
metals.
The Company's most advanced project is the Kallak iron ore asset
in northern Sweden. A potential 250 million tonne resource which
can produce a 'market leading' concentrate of 71.5 per cent iron
content and is a potential source of supply for Sweden's
fossil-free mining and steel making industries.
Fennoscandian Resources ("Fennoscandian"), the Company's
graphite business, is pursuing a strategy to develop a
resource/production base of natural flake graphite that can provide
'security of supply' and enable Finland to achieve its ambition of
self-sufficiency in battery manufacturing. The Company is a
recipient of Business Finland funding, which is supporting
Fennoscandian to move downstream, and develop its knowledge in
processing and manufacturing value-added graphite products.
The Company is developing the Aitolampi graphite asset, which
has a contained graphite resource of 1,275,000 million tonnes,
possessing almost perfect crystallinity, an important prerequisite
for high tech applications, such as lithium ion batteries.
In Kosovo, the Company owns approximately 48.4 per cent of
Vardar Minerals (as at 31 December 2020 - 46.1%) ("Vardar"), which
is focussed on exploration in the Tethyan Belt, a major orogenic
metallogenic province for gold and base metals. Vardar is
delivering exciting results for its Mitrovica licence which has
several exploration targets, including lead, zinc, copper and gold.
It also has the Viti licence which is showing potential for
copper-gold porphyry mineralisation. With Beowulf's support, Vardar
is focused on making a discovery.
The Company's asset portfolio is diversified by commodity,
geography and the development stage of its various projects, and
features metals and minerals in demand to facilitate an economic
'Green Transition' and for addressing the climate emergency.
Kallak is the foundation asset of the Company, but with Vardar
and Fennoscandian, the Company has many opportunities to grow, each
business area displaying strong prospects.
Enquiries
Beowulf Mining plc
Kurt Budge, Chief Executive Tel: +44 (0) 20 3771
Officer 6993
SP Angel
(Nominated Adviser & Broker)
Ewan Leggat / Stuart Gledhill Tel: +44 (0) 20 3470
/ Adam Cowl 0470
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
forecast.
BEOWULF MINING PLC
CONDENSED CONSOLIDATED INCOME STATEMENT
FOR THE TWELVE MONTHS TO 31 DECEMBER 2020 AND THE THREE MONTHS
TO 31 DECEMBER 2020
(Unaudited) (Unaudited) (Unaudited) (Audited)
3 months 3 months 12 months 12 months
ended ended ended ended
31 December 31 December 31 December 31 December
2019
2020 2019 2020
GBP
Notes GBP GBP GBP
Continuing operations
Administrative expenses (349,873) (167,585) (1,005,547) (904,666)
Impairment of exploration
costs (80,149) (10,720) (98,799) (10,720)
Share based payment
expense - (26,566) - (119,720)
Gain on step acquisition - - - 563,431
------------- ------------- ------------- -------------
Operating loss (430,022) (204,871) (1,104,346) (471,675)
Finance costs (163,236) (410) (203,576) (410)
Finance income 3 583 594 6,298
Grant income 4,938 37,080 12,637 37,080
------------- ------------- ------------- -------------
Loss before and after
taxation (588,317) (167,618) (1,294,691) (428,707)
============= ============= ============= =============
Loss attributable
to:
Owners of the parent (505,448) (113,025) (1,128,512) (267,000)
Non-controlling interests (82,869) (54,593) (166,179) (161,707)
(588,317) (167,618) (1,294,691) (428,707)
============= ============= ============= =============
Loss per share attributable
to the owners of the
parent:
Basic and diluted
(pence) 3 (0.08) (0.02) (0.19) (0.04)
BEOWULF MINING PLC
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE LOSS
FOR THE TWELVE MONTHS TO 31 DECEMBER 2020 AND THE THREE MONTHS
TO 31 DECEMBER 2020
(Unaudited) (Unaudited) (Unaudited) (Audited)
3 months 3 months 12 months 12 months
ended ended ended ended
31 December 31 December 31 December 31 December
2019
2020 2019 2020
GBP
GBP GBP GBP
Loss for the year (588,317) (167,618) (1,294,691) (428,707)
Other comprehensive income
Items that may be reclassified
subsequently to profit
or loss:
Exchange gains/(losses)
arising on translation
of foreign operations 233,660 (203,018) 854,020 (794,299)
------------- ------------- ------------- -------------
Total comprehensive loss (354,657) (370,636) (440,671) (1,223,006)
============= ============= ============= =============
Total comprehensive income
loss attributable to:
Owners of the parent (222,242) (321,323) (295,258) (1,037,811)
Non-controlling interests (132,415) (49,313) (145,413) (185,195)
(354,657) (370,636) (440,671) (1,223,006)
============= ============= ============= =============
BEOWULF MINING PLC
CONDENSED COMPANY STATEMENT OF COMPREHENSIVE LOSS
FOR THE TWELVE MONTHS TO 31 DECEMBER 2020 AND THE THREE MONTHS
TO 31 DECEMBER 2020
(Unaudited) (Unaudited) (Unaudited) (Audited)
3 months 3 months 12 months 12 months
ended ended ended ended
31 December 31 December 31 December 31 December
2019
2020 2019 2020
GBP
Notes GBP GBP GBP
Continuing operations
Administrative expenses (355,053) (87,573) (869,853) (651,434)
Share based payment
expense - (26,566) - (119,719)
Operating Loss (355,053) (114,139) (869,853) (771,153)
Finance income 3 583 594 6,298
Grant income - 1,425 - 1,425
------------- ------------- ------------- -------------
Loss before and after
taxation and total
comprehensive loss (355,050) (112,131) (869,259) (763,430)
============= ============= ============= =============
Loss per share attributable
to the owners of the
parent:
Basic and diluted (pence) 3 (0.06) (0.02) (0.14) (0.13)
BEOWULF MINING PLC
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2020
(Unaudited) (Audited)
As at As at
31 December 31 December
2020 2019
GBP GBP
ASSETS Notes
Non-current assets
Intangible assets 5 11,371,916 10,011,494
Property, plant and equipment 145,094 86,998
Loans and other financial assets 5,468 5,212
Right of use asset 1,937 7,324
------------- -------------
11,524,415 10,111,028
------------- -------------
Current assets
Trade and other receivables 1,566,848 167,261
Cash and cash equivalents 4,329,414 1,124,062
------------- -------------
5,896,262 1,291,323
------------- -------------
TOTAL ASSETS 17,420,677 11,402,351
============= =============
EQUITY
Shareholders' equity
Share capital 4 8,281,751 6,022,446
Share premium 24,722,362 20,824,009
Capital contribution reserve 46,451 46,451
Share based payment reserve 732,185 732,185
Merger reserve 137,700 137,700
Translation reserve (457,813) (1,291,068)
Accumulated losses (17,083,185) (15,781,161)
------------- -------------
Total Equity 16,379,451 10,690,562
------------- -------------
Non-controlling interests 394,654 326,555
------------- -------------
TOTAL EQUITY 16,774,105 11,017,117
------------- -------------
LIABILITIES
Current liabilities
Trade and other payables 501,147 242,885
Grant income 143,399 134,877
Lease liability 2,026 7,472
TOTAL LIABILITIES 646,572 385,234
------------- -------------
TOTAL EQUITY AND LIABILITIES 17,420,677 11,402,351
============= =============
BEOWULF MINING PLC
CONDENSED COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2020
(Unaudited) (Audited)
As at As at
31 December 31 December
2020 2019
Notes GBP GBP
ASSETS
Non-current assets
Investments 2,077,988 1,697,988
Loans and other financial assets 9,341,315 8,989,451
Property, plant and equipment 1,483 -
11,420,786 10,687,439
------------- -------------
Current assets
Trade and other receivables 1,476,755 23,260
Cash and cash equivalents 4,241,426 978,514
-------------
5,718,181 1,001,774
------------- -------------
TOTAL ASSETS 17,138,967 11,689,213
============= =============
EQUITY
Shareholders' equity
Share capital 4 8,281,751 6,022,446
Share premium 24,722,362 20,824,009
Capital contribution reserve 46,451 46,451
Share option reserve 732,185 732,185
Merger reserve 137,700 137,700
Accumulated losses (17,168,118) (16,298,859)
------------- -------------
TOTAL EQUITY 16,752,331 11,463,932
------------- -------------
LIABILITIES
Current liabilities
Trade and other payables 243,237 90,404
Grant income 143,399 134,877
TOTAL LIABILITIES 386,636 225,281
------------- -------------
TOTAL EQUITY AND LIABILITIES 17,138,967 11,689,213
============= =============
BEOWULF MINING PLC
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE TWELVE MONTHS TO 31 DECEMBER 2020
Share Share Capital Share-based Merger Translation Accumulated Total Non- Total
capital premium contribution payment reserve reserve losses controlling equity
reserve reserve interest
GBP GBP GBP GBP GBP GBP GBP GBP GBP GBP
At 1 January
2019 5,663,072 19,266,271 46,451 612,465 137,700 (520,257) (15,311,933) 9,893,769 (160,587) 9,733,182
Loss for the
year - - - - - - (267,000) (267,000) (161,707) (428,707)
Foreign
exchange
translation - - - - - (770,811) - (770,811) (23,488) (794,299)
---------- ------------ ------------- ------------ -------- ------------ ------------- ------------ ------------ ------------
Total
comprehensive
loss - - - - - (770,811) (267,000) (1,037,811) (185,195) (1,223,006)
Transactions
with
owners
Issue of share
capital 357,707 1,642,293 - - - - - 2,000,000 - 2,000,000
Costs
associated
with the issue
of
new shares - (93,305) - - - - - (93,305) - (93,305)
Equity-settled
share-based
payment
transactions 1,667 8,750 - 119,720 - - - 130,137 - 130,137
Acquisition of
subsidiary - - - - - - (202,228) (202,228) 672,337 470,109
At 31
December 2019
(Audited) 6,022,446 20,824,009 46,451 732,185 137,700 (1,291,068) (15,781,161) 10,690,562 326,555 11,017,117
---------- ------------ ------------- ------------ -------- ------------ ------------- ------------ ------------ ------------
Loss for the
year - - - - - - (1,128,512) (1,128,512) (166,179) (1,294,691)
Foreign
exchange
translation - - - - - 833,255 - 833,255 20,765 854,020
---------- ------------ ------------- ------------ -------- ------------ ------------- ------------ ------------ ------------
Total
comprehensive
income - - - - - 833,255 (1,128,512) (295,257) (145,414) (440,671)
Transactions
with
owners
Issue of share
capital 2,259,305 5,165,060 - - - - - 7,424,365 - 7,424,365
Costs
associated
with the issue
of
new shares - (1,266,707) - - - - - (1,266,707) - (1,266,707)
Step up
interest
in subsidiary - - - - - - (173,512) (173,512) 213,513 40,001
At 31 December
2020
(Unaudited) 8,281,751 24,722,362 46,451 732,185 137,700 (457,813) (17,083,185) 16,379,451 394,654 16,774,105
========== ============ ============= ============ ======== ============ ============= ============ ============ ============
BEOWULF MINING PLC
CONDENSED COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE TWELVE MONTHS TO 31 DECEMBER 2020
Share Share Merger Capital Share-based Accumulated Total
capital premium reserve contribution payment losses
reserve reserve
GBP GBP GBP GBP GBP GBP GBP
At 1 January
2019 5,663,072 19,266,271 137,700 46,451 612,465 (15,535,429) 10,190,530
Loss for the
year - - - - - (763,430) (763,430)
Total
comprehensive
loss - - - - - (763,430) (763,430)
Transactions
with owners
Issue of share
capital 357,707 1,642,293 - - - - 2,000,000
Costs
associated
with
the issue of
new shares - (93,305) - - - - (93,305)
Equity-settled
share-based
payment
transactions 1,667 8,750 - - 119,720 - 130,137
------------- ------------ ------------ ------------- ------------
At 31
December 2019
(Audited) 6,022,446 20,824,009 137,700 46,451 732,185 (16,298,859) 11,463,932
------------- ------------- ------------- ------------ ------------ ------------- ------------
Loss for the
year - - - - - (869,259) (869,259)
Total
comprehensive
loss
- - - - - (869,259) (869,259)
------------- ------------- ------------- ------------ ------------ ------------- ------------
Transactions
with owners
Issue of share
capital 2,259,305 5,165,060 - - - - 7,424,365
Costs
associated
with
the issue of
new shares - (1,266,707) - - - - (1,266,707)
At 31 December
2020
(Unaudited) 8,281,751 24,722,362 137,700 46,451 732,185 (17,168,118) 16,752,331
============= ============= ============= ============ ============ ============= ============
BEOWULF MINING PLC
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
AS AT 31 DECEMBER 2020
(Unaudited) (Audited)
31 December 31 December
2020
2019
GBP GBP
Cash flows from operating activities
Loss before income tax (1,294,691) (428,707)
Depreciation charges 35,608 20,971
Equity-settled share-based transactions - 130,137
Impairment of exploration costs 98,799 10,720
Finance income (594) (6,298)
Finance expense 203,576 410
Grant income (12,637) (37,080)
Fair value gain - (563,431)
Amortisation 5,777 4,615
Unrealised foreign exchange (gains)/losses (12,590) 2,121
(976,752) (866,542)
Decrease/(increase) in trade and
other receivables (2,203) (106,009)
Decrease/(increase) in trade and
other payables 97,623 14,930
Net cash used in operating activities (881,332) (957,621)
------------- -------------
Cash flows from investing activities
Purchase of intangible assets (622,501) (1,304,896)
Purchase of property, plant and
equipment (89,436) (77,615)
Acquisition of associate - (500,000)
Investment by minority interest 40,000 -
Cash acquired with subsidiary - 530,031
Sale of investments - 7
Interest received 594 6,298
Grant receipt 25,796 -
Net cash used in investing activities (645,547) (1,346,175)
------------- -------------
Cash flows from financing activities
Proceeds from issue of shares 6,006,368 2,000,000
Payment of share issue costs (1,113,348) (93,305)
Lease principal paid (5,840) (4,467)
Lease interest paid (255) (410)
Interest paid (203,321) -
Proceeds from borrowings 932,309 -
Repayment of borrowings (953,111) -
Net cash from financing activities 4,662,802 1,901,818
------------- -------------
Increase/(decrease) in cash and
cash equivalents 3,135,923 (401,978)
Cash and cash equivalents at beginning
of year 1,124,062 1,533,232
Effect of foreign exchange rate
changes 69,429 (7,192)
Cash and cash equivalents at end
of year 4,329,414 1,124,062
============= =============
BEOWULF MINING PLC
CONDENSED COMPANY CASH FLOW STATEMENT
AS AT 31 DECEMBER 2020
(Unaudited) (Audited)
31 December 31 December
2020
2019
GBP GBP
Cash flows from operating activities
Loss before income tax (869,259) (763,430)
Expected credit loss 72,069 158,005
Equity-settled share-based transactions - 130,137
Finance income (594) (6,298)
Finance costs 203,321 -
Grant income - (1,425)
Unrealised foreign exchange (gains)/losses (16,865) 2,121
(611,328) (480,890)
(Increase)/decrease in trade and
other receivables (61,415) 1,141
Decrease in trade and other payables (524) 23,443
Net cash used in operating activities (673,267) (456,306)
------------- ----------------
Cash flows from investing activities
Loans to subsidiaries (448,151) (989,434)
Interest received 594 6,298
Acquisition of subsidiary - (500,000)
Grant receipt 25,796 -
Purchase of property, plant and (1,483)
equipment -
Net cash used in investing activities (803,244) (1,483,146)
------------- ----------------
Cash flows from financing activities
Proceeds from issue of shares 6,006,368 2,000,000
Payment of share issue costs (1,113,348) (93,305)
Financing of subsidiary (380,000) (465,000)
Proceeds from borrowings 932,309 -
Repayment of loan principal (953,111) -
Interest paid (203,321) -
Net cash from financing activities 4,668,897 1,441,695
------------- ----------------
Increase/(decrease) in cash and
cash equivalents 3,192,386 (497,747)
Cash and cash equivalents at beginning
of year 978,514 1,470,087
Effect of foreign exchange rate
changes 70,526 6,174
Cash and cash equivalents at end
of year 4,241,426 978,514
============= ================
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED INTERIM
FOR THE TWELVE MONTHS TO 31 DECEMBER 2020
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 that of 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 accounting standards in conformity
with the requirements of the Companies Act 2006. 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 2019 except as noted below.
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 twelve months
ended 31 December 2019 is audited. The audit of the financial
information for the year ended 31 December 2019 has been completed.
The auditor's report on the statutory financial statements for the
year ended 31 December 2019 was unqualified and did not contain any
statement under sections 498 (2) or (3) of the Companies Act 2006.
The audit report did contain a material uncertainty with respect of
going concern, however following additional audit procedures and
noting it as key audit matter, it was concluded the going concern
basis was appropriate.
The going concern assumption has been assessed by the Directors
in light of the impact of COVID-19, taking into consideration the
entities current financial position, ability to raise new funds and
carry out its operations for the year. The Directors are confident
that there is no immediate need for funding following a round of
successful capital raisings that generated GBP7.4m before
expenses.
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 . Group and Company loss per share
(Unaudited) (Unaudited) (Unaudited) (Audited)
3 months 3 months 12 months 12 months
ended ended ended ended
Group 31 December 31 December 31 December 31 December
2020 2019 2020 2019
Loss for the period/year
attributable to shareholders
of the Company (GBP's) (505,448) (113,025) (1,128,512) (267,000)
Weighted average number
of ordinary shares 624,589,452 591,944,747 607,815,562 585,102,740
Diluted weighted average
number of ordinary shares 624,589,452 591,944,747 607,815,562 585,102,740
------------ ------------ ------------ ------------
Loss per share (p) (0.08) (0.02) (0.19) (0.04)
------------ ------------ ------------ ------------
Parent
Loss for the period/year
attributable to shareholders
of the Company (GBP's) (335,050) (112,131) (869,259) (763,430)
Weighted average number
of ordinary shares 624,589,542 597,824,737 607,815,562 585,102,740
Diluted weighted average
number of ordinary shares 624,589,542 597,824,737 607,815,562 585,102,740
------------ ------------ ------------ ------------
Loss per share (p) (0.06) (0.02) (0.14) (0.13)
------------ ------------ ------------ ------------
4. Share Capital
(Unaudited) (Audited)
31 December 31 December
2020 2019
GBP GBP
Allotted, issued and fully paid
Ordinary shares of 1p each 8,281,752 6,022,446
----------- --------------
The number of shares in issue was as follows:
Number
of shares
Balance at 1 January 2019 566,307,254
Issued during the year 35,937,418
------------
Balance at 31 December 2019 602,244,672
Issued during the year 225,930,552
------------
Balance at 31 December 2020 828,175,224
------------
5 . Intangible Assets: Group
Exploration costs As at As at
31 December 31 December
2020 2019
(Unaudited) (Audited)
GBP GBP
Cost
At 1 January 10,011,256 8,285,547
Additions for the year 612,062 1,304,896
Additions arising from the step-up in
interest in Vardar - 1,203,685
Foreign exchange movements 847,397 (771,914)
Impairment (98,799) (10,720)
11,371,916 10,011,494
============= =============
The net book value of exploration costs is comprised of
expenditure on the following projects:
As at As at
31 December 31 December
2020 2019
(Unaudited) (Audited)
GBP GBP
Project Country
Kallak Sweden 7,533,388 6,675,124
Åtvidaberg Sweden 393,303 345,978
Ågåsjiegge Sweden - 15,568
Pitkäjärvi Finland 1,333,114 1,058,078
Joutsijärvi Finland - 19,095
Rääpysjärvi Finland 47,053 39,905
Karhunmäki Finland 41,017 24,078
Merivaara Finland 36,965 17,846
Polvela Finland - 31,316
Tammijärvi Finland - 24,278
Mitrovica Kosovo 1,387,030 1,243,194
Viti Kosovo 600,046 517,034
-------------
11,371,916 10,011,494
============= =============
Total Group exploration costs of GBP11,371,916 are currently
carried at cost in the financial statements. During the period
Ågåsjiegge, Joutsijärvi, Polvela and Tammijärvi were identified as
projects to be discontinued. The impairment charge arising from the
impairment of the projects was GBP98,799 (31 December 2019: Sala
GBP10,270).
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. 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.
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 2017, 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 the condensed financial statements as at
31 December 2020 as an intangible exploration licence with a
carrying value of GBP7,533,388. 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 **
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