TIDMBEM
RNS Number : 9492J
Beowulf Mining PLC
27 August 2021
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulation ("MAR") (EU) No. 596/2014, as incorporated into UK law
by the European Union (Withdrawal) Act 2018. Upon the publication
of this announcement, this inside information is now considered to
be in the public domain.
27 August 2021
Beowulf Mining plc
("Beowulf" or the "Company")
Unaudited Financial Results for the Period Ended 30 June
2021
Beowulf (AIM: BEM; Spotlight: BEO), the mineral exploration and
development company, announces its unaudited financial results for
the six months ended 30 June 2021.
Overview of Activities in the Quarter
-- On 20 April 2021, Beowulf published a letter that the
Company's Chairman, Sven Otto Littorin, had sent to Minister
Baylan, Sweden's Minister of Enterprise and Innovation, concerning
the Company's Kallak Iron Ore Project ("Kallak" or the "Kallak
Project") Exploitation Concession application. On 14 June 2021, the
Company's CEO, Kurt Budge, sent a further letter regarding this
matter.
-- On 19 May 2021, the Company co-sponsored, with Eurobattery
Minerals AB, a webinar titled 'Hållbar Gruvnäring' (Sustainable
Mining) in Stockholm aimed at educating stakeholders on the rapid
increase in smart and green technologies and the demands this
creates for new supply of innovation-critical metals and
minerals.
The Swedish Government has set-up an inquiry aimed at ensuring a
sustainable supply of innovation-critical metals and minerals from
primary and secondary sources. It is recognised that sustainable
and lasting access to innovation-critical metals and minerals is of
great importance to Sweden, but at the same time, no new mine has
been established in Sweden in over a decade.
-- On 25 May 2021, the Company announced the results of a
Mineral Resource Estimate ("MRE") Upgrade for the Kallak Project in
Sweden; an additional 19 million tonnes ("Mt") of iron
mineralisation, a 12.5 per cent resource increase, giving a
Measured and Indicated Resource of 132 Mt grading 27.8 per cent
iron ("Fe") and an Inferred Mineral Resource of 39 Mt grading 27.1
per cent Fe.
-- On 8 June 2021, via the Swedish Government, the Company
received a copy of a letter written by UNESCO, dated 2 June 2021,
with its comments on Beowulf's application for an Exploitation
Concession for Kallak. On 9 June 2021, the Company updated the
market with its preliminary response to UNESCO's findings.
-- On 10 June 2021, Beowulf's wholly-owned Finnish Subsidiary Oy
Fennoscandian Resources Ab ("Fennoscandian") was granted EUR791,000
by Business Finland, the equivalent of 50 per cent of a three-year
EUR1.6 million budget for Fennoscandian's 'Spheronisation and
Purification of Natural Graphite for the European Lithium-Ion
Battery Market' project. Sufficient funding will be made available
from Beowulf to enable Fennoscandian to fund the balance of the
project budget.
Fennoscandian has with immediate effect changed its name to
Grafintec Oy.
-- Beowulf announced that further to the UNESCO letter dated 2
June 2021 and the CEO's letter to Minister Baylan dated 14 June
2021, on 18 June 2021 the Ministry of Enterprise (the "Ministry")
and Innovation invited the Company to submit any further comments
regarding the UNESCO letter to the Ministry by 6 September
2021.
Post Period
-- On 5 July 2021, Beowulf announced there were 607,748,200
Swedish Depository Receipts representing 73.4 per cent of the
issued share capital of the Company. The remaining issued share
capital of the Company is held in the UK.
-- Beowulf announced, on 8 July 2021, the issue and allotment of
3,535,412 new ordinary shares of 1 pence each in the Company (the
"Shares") to satisfy an exercise of share options held by Kurt
Budge, CEO ("Share Options").
-- On 14 July 2021, Beowulf announced the award of a Mining
Study contract to Carci Mining Consultants Limited ("Carci") for
Kallak, to develop an open pit design and mining schedule based on
the upgraded MRE.
-- Beowulf announced, on 2 August 2021, the Company had invested
a further GBP100,000 in Vardar Minerals Ltd ("Vardar"). The
investment increases the Company's ownership in Vardar from 48.4
per cent to approximately 49.4 per cent. Beowulf's investment is
funding advance procurement of necessary support equipment for
drilling planned for Autumn 2021.
Kurt Budge, Chief Executive Officer of Beowulf, commented:
"Beowulf has a busy back end of the year to look forward to.
"We will be submitting our comments to the Swedish Government
regarding the UNESCO letter on Kallak. Given Minister Baylan's
words in recent months about a decision once UNESCO had responded,
the acceleration of fossil-free steel making in Sweden and the
continued need for investment and new jobs in the north of Sweden,
we remain optimistic that a decision will be 'forthcoming'.
"On the back of an upgraded resource at Kallak, we have invested
again and now await the results of the Mining Study, which will
support discussions with The Swedish Transport Agency
(Trafikverket), the Inlandsbanan (the Inland Railway) and emerging
fossil-free steel producers in Norrbotten, such as H2 Green
Steel.
"In Finland, Fennoscandian's success with the grant of
EUR791,000 by Business Finland is a tremendous boost and we look
forward to applying these funds to our investment programmes
especially the further development of our partnership with Epsilon
Advanced Materials and the establishment of a Strategic Processing
Hub in Finland. We will provide an update on developments in the
next couple of months.
"Finally, we are looking forward to permits being renewed and
the start of an intensive drilling campaign in Kosovo this
Autumn."
Financials
-- The consolidated loss increased from H1 2020 at GBP394,475 to H1 2021 of GBP714,871.
-- The underlying consolidated administrative costs of
GBP718,293 for H1 2021 increased by GBP315,139 compared to the
administrative cost of GBP403,154 for H1 2020. The variance is
largely attributable to the foreign currency loss of GBP200,765
(2020: GBP5,395), this is primarily due to the retranslation of
cash balances held in SEK, combined with an increase in directors'
remuneration and social security costs (GBP17,424), consultancy
(GBP69,521), and research costs incurred in Fennoscandian relating
to downstream processing of (GBP19,569).
-- Consolidated basic and diluted loss per share for the period
ended 30 June 2021 was 0.08 pence (H1 2020: profit of 0.06
pence).
-- GBP4,408,639 in cash held at the period end (H1 2020:
GBP620,940). The higher level of cash is attributable to
fundraising activities completed in December 2020 which raised
approximately GBP7.4 million before expenses.
-- The cumulative translation losses held in equity attributable
to the holders of the parent increased by GBP481,698 in the period
ended 30 June 2021 to GBP938,970 (31 December 2020: gain of
GBP592,079). Much of the Company's exploration costs are in Swedish
Krona and Euro which has weakened against the pound since 31
December 2020.
-- At 30 June 2021, there were 607,748,200 Swedish Depository
Receipts issued representing 73.4 per cent of the issued share
capital of the Company. The remaining issued share capital of the
Company is held in the UK as AIM securities.
Operational
Finland
-- On 10 June 2021, Fennoscandian, was granted EUR791,000 by
Business Finland, the equivalent of 50 per cent of a three-year
EUR1.6 million budget for Fennoscandian's 'Spheronisation and
Purification of Natural Graphite for the European Lithium-Ion
Battery Market' project. Sufficient funding will be made available
from Beowulf to enable Fennoscandian to fund the balance of the
project budget.
This work is part of the BATCircle 2.0 (Finland-based Circular
Ecosystem of Battery Metals) consortium which has been granted
EUR10.8 million by Business Finland as part of a total funding
budget of EUR19.3 million.
Finland has high-quality natural flake graphite resources, and
the opportunity exists to create a sustainable value chain for
anode material markets in Finland and Europe.
The overall objectives of the project are to develop a chemical
free technological solution, utilising renewable energy, to
spheronise and purify graphite within a Finnish industrial
ecosystem, for use in manufacturing lithium-ion battery anodes.
Sweden
-- On 25 May 2021, the Company announced the results of a MRE
Upgrade for the Kallak Project, which was prepared by Baker
Geological Services Ltd.
An additional 19 Mt of iron ore mineralisation, a 12.5 per cent
resource increase, was identified, with a Measured and Indicated
Resource of 132 Mt grading 27.8 per cent Fe and an Inferred Mineral
Resource of 39Mt grading 27.1 per cent Fe.
Three distinct areas of elevated copper and gold mineralisation
have also been identified in drilling, running the length of the
Kallak Project area, with elevated assay intersections
predominantly lying on the boundaries of the iron
mineralisation.
Copper grades reach up to 1.6 per cent, although this was the
maximum possible value using the assay method employed at the
time.
Gold grades reach up to 0.75 grammes per tonne from testwork
completed in April 2021 on those pulp samples where the copper
assay was more than 0.1 per cent.
In total, 30 samples were sent for gold assay with only five
samples being below detection limit.
-- On 8 June 2021, via the Swedish Government, the Company
received a copy of a letter written by UNESCO, dated 2 June 2021,
with its comments on Beowulf's application for an Exploitation
Concession for Kallak.
Comments from UNESCO suggested that:
-- the Swedish Government seek a revised and extended In-Depth
Assessment in assessing the impact of the proposed development [of
the Kallak Iron Ore Project] on a World Heritage Property [Laponia]
prior to any decision being taken to approve the mining
exploitation;
-- that the role of the Sami Parliament is relevant to the
assessment of the impact of the proposed development on the World
Heritage property; and
-- that the Swedish Government should also consider how the
practice of reindeer husbandry outside the property and directly
related to reindeer husbandry within the property will be
protected.
-- On 9 June 2021, the Company's CEO, Kurt Budge, wrote to
Minister Baylan regarding the UNESCO letter.
Selected extracts from the letter are provided below:
'On 8 June 2021, Beowulf Mining was notified by the
Finansinspektionen, Sweden's financial supervisory authority, whose
role is to promote stability and efficiency in Sweden's financial
system as well as to ensure sustainability and an effective
consumer protection, of UNESCO's letter regarding our Kallak Iron
Ore Project ("Kallak") dated 2 June 2021.
Finansinspektionen wrote that UNESCO's letter had been in the
hands of members of the Swedish public (including elected Sami
officials) for several days, with associated posts on social
media.
At the time, Beowulf had not received a copy of UNESCO's letter,
but as the information was already in the public domain, with no
explanation of its significance the market reacted strongly, left
to draw its own conclusions. The Company's share price fell over 10
per cent last week.
During the last six years, there have been several occasions
where 'market sensitive' information has been made public before
Beowulf has been informed. Each time damage has been caused to the
Company's share price, individual's investments, including Swedish
shareholders who now own 72 per cent of the Company, and Sweden's
reputation as a country in which to do business.
It is the Company's experience that often public agencies do not
understand what constitutes 'market sensitive' information or
recognise the obligations of a public company to its shareholders
and the equity markets. Once again, the Company is left to deal
with the aftermath.
It is inaccurate to say that the Kallak case is complex because
of competing interests, as an excuse for delaying a decision.
National interests are a distraction. The evidence shows that
mining and reindeer herding coexist across Sweden, in the very few
places you actually find an operating mine, as there are only 12 in
the Country.
Beowulf has satisfied the procedural and legal requirements to
be granted the Concession and has the right to progress with its
investment, project development and environmental permitting. This
has been the case since Bergsstaten recommended to the Government
that the Concession be awarded over 5.5 years ago.
We could have been in production now. With benchmark iron ore
prices at over $200/tonne, Jokkmokk should have already been on the
road to realising its economic transformation. The opportunity cost
to stakeholders in Jokkmokk and Beowulf shareholders is
considerable.'
Beowulf also announced that further to the UNESCO letter dated 2
June 2021 and the CEO's letter to Minister Baylan dated 14 June
2021, on 18 June 2021 the Ministry of Enterprise and Innovation
(the "Ministry") invited the Company to submit any comments
regarding the UNESCO letter to the Ministry by 6 September
2021.
-- On 14 July 2021, Beowulf announced the award of a Mining
Study contract to Carci Mining Consultants for Kallak, to develop
an open pit design and mining schedule based on the upgraded
MRE.
The Mining Study will provide better definition for mining
equipment selection, and product types, production volumes and
specifications, which will support project development, discussions
with The Swedish Transport Agency (Trafikverket), the Inlandsbanan
(the Inland Railway) and emerging fossil-free steel producers in
Norrbotten.
Corporate
-- On 5 July 2021, Beowulf announced there were 607,748,200
Swedish Depository Receipts representing 73.4 per cent of the
issued share capital of the Company. The remaining issued share
capital of the Company is held in the UK.
-- Beowulf announced, on 8 July 2021, the issue and allotment of
3,535,412 new ordinary shares of 1 pence each in the Company (the
"Shares") to satisfy an exercise of share options held by Kurt
Budge, CEO ("Share Options").
Kurt Budge exercised Share Options in respect of 9,000,000
shares, originally granted on 17 July 2015. The Share Options, as
originally granted, had an exercise price of 1.66 pence per share
and were due to be exercised no later than 17 July 2020 but the
Company was in a Close Period associated with last year's Capital
Raising. The exercise period was extended, in July 2020, to 17 July
2021 in order to allow Mr Budge the opportunity to exercise the
Share Options, which because of the time extension became non-tax
advantaged. The Company opted, with Kurt Budge abstaining from this
decision, to net settle the share option exercise with Kurt Budge
paying the nominal value of the Shares being issued.
ESG
-- Beowulf is a strong supporter of the Sustainable Development
Goals ("SDGs") and is currently reviewing how the Company can best
proactively support their implementation in our areas of
influence.
-- The Company has adopted the following Disclosure Topics
listed by the Sustainability Accounting Standards Board for the
Metals and Mining sector ( https://www.sasb.org/standards/ ) as
material to the Company's stakeholders:
-- Energy Management including Green House Gas Emissions;
-- Water Management;
-- Biodiversity Impacts;
-- Rights of Indigenous Peoples;
-- Community Relations; and
-- Business Ethics and Transparency.
-- As at this time Beowulf has no active mining operations,
these Disclosure Topics will be integrated into the Company's
policies, corporate strategy, project development plans and
management systems.
-- As the Company moves forward with its ESG agenda, it will be
transparent in its communications, the progress it is making, and
sustainability results.
-- The Company is currently working on a Human Rights Policy.
Enquiries:
Beowulf Mining plc
Kurt Budge, Chief Executive Tel: +44 (0) 20 7583
Officer 8304
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 .
About Beowulf Mining plc
Beowulf Mining plc ("Beowulf" or the "Company") is an
exploration and development company, listed on the AIM market of
the London Stock Exchange and the Spotlight Exchange in Sweden.
Beowulf's purpose to be a responsible and innovative company
that creates value for our shareholders, wider society and the
environment, through sustainably producing critical raw materials,
which includes iron ore, graphite and base metals, needed for the
transition to a Green Economy and to address the Climate
Emergency.
The Company's asset portfolio is diversified by commodity,
geography and the development stage of its various projects.
The Company's most advanced project is the Kallak iron ore asset
in northern Sweden. A potential 389 million tonne resource which
can produce a 'market leading' concentrate of 71.5% iron content
and is a potential source of supply for fossil-free steel
production in Sweden for decades to come.
Fennoscandian Resources ("Fennoscandian"), a wholly-owned
subsidiary, is pursuing a strategy to develop a resource and
production base of graphite that can provide security of supply and
contribute to Finland's ambitions of achieving battery
manufacturing self-sufficiency, focusing on both natural flake
graphite production and a Circular Economy/recycling strategy to
produce high-value graphite products. The Company is also
developing its knowledge in processing and manufacturing
value-added graphite products, including anode material for
lithium-ion batteries.
Since Fennoscandian was acquired by Beowulf in January 2016, the
Company has invested approximately EUR2.2 million in graphite
exploration, resource development, metallurgical testwork and the
assessment of market applications for graphite supplied from its
Aitolampi project, including lithium-ion battery applications.
Fennoscandian has recently signed a Memorandum of Understanding
("MoU") with Epsilon Advance Materials Limited ("EAMPL"). The MoU
enables Fennoscandian to build its downstream capability,
collaborating with a strong and innovative technology/processing
partner, and for EAMPL to firmly establish itself in Finland, as a
market-entry point for supplying pre-cursor anode material into
Europe. The MoU addresses the development of a strategic processing
hub for both natural flake and recycled graphite to be located in
Finland.
In addition, a Scoping Study contract for the Aitolampi graphite
project has been awarded to AFRY Finland Oy. The purpose of the
Scoping Study is to verify the robustness of the work completed by
Fennoscandian, and to provide a roadmap for the next project
development stage, most likely a Pre-feasibility Study. The output
of the Scoping Study will enable Fennoscandian to share information
on the Aitolampi project and communicate with the local community
and other important stakeholders.
In Kosovo, the Company owns approximately 4 9 . 4 % of Vardar
Minerals ("Vardar"), which is focus 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.
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.
BEOWULF MINING PLC
CONDENSED CONSOLIDATED INCOME STATEMENT
FOR THE SIX MONTHS TO 30 JUNE 2021
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited)
3 months 3 months 6 months 6 months 12 months
ended 30 ended 30 ended 30 ended 30 ended 31
June June June June December
2020
2021 2020 2021 2020
GBP
Notes GBP GBP GBP GBP
Continuing operations
Administrative expenses (190,460) (185,503) (718,293) (403,154) (1,005,547)
Impairment of exploration
costs - - - - (98,799)
Operating (Loss) (190,460) (185,503) (718,293) (403,154) (1,104,346)
Finance costs (70) (73) (88) (161) (203,576)
Finance income 21 188 47 583 594
Grant Income 2,216 8,257 3,463 8,257 12,637
------------ ------------ ------------ ------------ ------------
(Loss) before and after
taxation (188,293) (177,131) (714,871) (394,475) (1,294,691)
============ ============ ============ ============ ============
Loss attributable to:
Owners of the parent (170,213) (161,650) (667,848) (353,195) (1,128,512)
Non-controlling interests (18,080) (15,481) (47,023) (41,280) (166,179)
(188,293) (177,131) (714,871) (394,475) (1,294,691)
============ ============ ============ ============ ============
Loss per share attributable
to the owners of the
parent:
Basic and diluted (pence) 3 (0.02) (0.03) (0.08) (0.06) (0.19)
BEOWULF MINING PLC
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE LOSS
FOR THE SIX MONTHS TO 30 JUNE 2021
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited)
3 months 3 months 6 months 6 months 12 months
ended ended ended ended
30 June 30 June 30 June 30 June ended
2021 2020 2021 2020 31 December
2020
GBP GBP GBP GBP GBP
(Loss) for the period
/ year (188,293) (177,131) (714,871) (394,475) (1,294,691)
Other comprehensive
(loss) / income
Items that may be reclassified
subsequently to profit
or loss:
Exchange (losses)/gain
arising on translation
of foreign operations 142,452 495,684 (503,471) 620,360 854,020
------------ ------------ ------------ ------------ -------------
Total comprehensive
(loss) / income (45,841) 318,553 (1,218,342) 225,885 (440,671)
============ ============ ============ ============ =============
Total comprehensive
(loss) / income attributable
to:
Owners of the parent (26,158) 309,608 (1,149,546) 238,883 (294,716)
Non-controlling interests (19,683) 8,943 (68,796) (12,998) (145,955)
(45,841) 318,553 (1,218,342) (225,885) (440,671)
============ ============ ============ ============ =============
BEOWULF MINING PLC
CONDENSED COMPANY STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS TO 30 JUNE 2021
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited)
3 months 3 months 6 months 6 months 12 months
ended ended ended ended ended
30 June 30 June 30 June 30 June 31 December
2020
2021 2020 2021 2020
GBP
Notes GBP GBP GBP GBP
Continuing operations
Administrative expenses (203,114) (146,276) (686,862) (303,612) (869,853)
Operating Loss (203,114) (146,276) (686,862) (303,612) (869,853)
Finance income 21 188 47 583 594
Loss before and after
taxation and total
comprehensive loss (203,093) (146,088) (686,815) (303,029) (869,259)
============ ============ ============ ============ =============
Loss per share attributable
to the owners of
the parent:
Basic and diluted
(pence) 3 (0.02) (0.02) (0.08) (0.05) (0.14)
BEOWULF MINING PLC
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2021
(Unaudited) (Unaudited) (Audited)
As at As at As at
30 June 30 June 31 December
2021 2020 2020
GBP GBP GBP
ASSETS Notes
Non-current assets
Intangible assets 5 11,189,370 10,868,864 11,371,916
Property, plant and
equipment 120,125 132,921 145,094
Loans and other financial
assets 5,334 5,394 5,468
Right of use asset 10,395 4,915 1,937
------------- ------------- -------------
11,325,224 11,012,094 11,524,415
------------- ------------- -------------
Current assets
Trade and other receivables 128,834 92,619 1,566,848
Cash and cash equivalents 4,408,639 620,940 4,329,414
------------- ------------- -------------
4,537,473 713,559 5,896,262
------------- ------------- -------------
TOTAL ASSETS 15,862,697 11,725,653 17,420,677
============= ============= =============
EQUITY
Shareholders' equity
Share capital 4 8,281,751 6,022,446 8,281,751
Share premium 24,665,977 20,824,009 24,684,737
Merger Reserve 137,700 137,700 137,700
Capital contribution
reserve 46,451 46,451 46,451
Share-based payment
reserve 732,185 732,185 732,185
Translation reserve (938,970) (698,989) (457,272)
Accumulated losses (17,818,139) (16,155,211) (17,083,185)
------------- ------------- -------------
Total Equity 15,106,955 10,908,591 16,342,367
------------- ------------- -------------
Non-controlling interests 392,422 374,411 394,113
------------- ------------- -------------
TOTAL EQUITY 15,499,377 11,283,002 16,736,480
------------- ------------- -------------
LIABILITIES
Current liabilities
Trade and other payables 218,397 284,489 538,772
Grant income 134,497 153,086 143,399
Lease Liability 10,426 5,076 2,026
------------- ------------- -------------
TOTAL LIABILITIES 363,320 442,651 684,197
------------- ------------- -------------
TOTAL EQUITY AND LIABILITIES 15,862,697 11,725,653 17,420,677
============= ============= =============
BEOWULF MINING PLC
CONDENSED COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2021
(Unaudited) (Unaudited) (Audited)
As at As at As at
30 June 30 June 31 December
2021 2020 2020
GBP GBP GBP
ASSETS
Non-current assets
Investments 2,277,988 1,777,988 2,077,988
Loans and other financial
assets 9,969,134 9,157,028 9,341,315
Property, plant and
equipment 1,297 - 1,483
12,248,419 10,935,016 11,420,786
------------- ------------ -------------
Current assets
Trade and other receivables 40,507 23,455 1,476,755
Cash and cash equivalents 3,918,655 452,184 4,241,426
------------ -------------
3,959,162 475,639 5,718,181
------------- ------------ -------------
TOTAL ASSETS 16,207,581 11,410,655 17,138,967
============= ============ =============
EQUITY
Shareholders' equity
Share capital 8,281,751 6,022,446 8,281,751
Share premium 24,665,977 20,824,009 24,684,737
Merger Reserve 137,700 137,700 137,700
Capital contribution
reserve 46,451 46,451 46,451
Share-based payment
reserve 732,185 732,185 732,185
Accumulated losses (17,854,933) (16,601,88) (17,168,118)
------------- ------------ -------------
TOTAL EQUITY 16,009,131 11,160,903 16,714,706
------------- ------------ -------------
LIABILITIES
Current liabilities
Trade and other payables 63,953 96,666 280,862
Grant income 134,497 153,086 143,399
------------ -------------
TOTAL LIABILITIES 198,450 249,752 424,261
------------- ------------ -------------
TOTAL EQUITY AND LIABILITIES 16,207,581 11,410,655 17,138,967
============= ============ =============
BEOWULF MINING PLC
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS TO 30 JUNE 2021
Share Share Merger Capital Share-based Translation Accumulated Total Non- Total
capital premium reserve contribution payment reserve losses controlling equity
reserve reserve interest
GBP GBP GBP GBP GBP GBP GBP GBP GBP GBP
At 1 January
2020 6,022,446 20,824,009 137,700 46,451 732,185 (1,291,068) (15,781,161) 10,690,562 326,555 11,017,117
Loss for the
period (353,195) (353,195) (41,280) (394,475)
Foreign
exchange
translation 592,079 592,079 28,281 620,360
---------- ------------ -------- ------------- ------------ ------------ ------------- ------------ ------------ ------------
Total
comprehensive
loss
592,079 (353,195) 238,884 (12,999) 225,885
---------- ------------ -------- ------------- ------------ ------------ ------------- ------------ ------------ ------------
Transactions
with
owners
Step
acquisition
of Subsidiary - - - - - - (20,855) (20,855) 60,855 40,000
At 30 June
2020
(Unaudited) 6,022,446 20,824,009 137,700 46,451 732,185 (698,989) (16,155,211) 10,908,591 374,411 11,283,002
---------- ------------ -------- ------------- ------------ ------------ ------------- ------------ ------------ ------------
Loss for the
period - - - - - - (775,317) (775,317) (124,899) (900,216)
Foreign
exchange
translation - - - - - 241,171 - 241,171 (8,057) 233,660
---------- ------------ -------- ------------- ------------ ------------ ------------- ------------ ------------ ------------
Total
comprehensive
loss - - - - - 241,171 (755,317) (533,600) (132,956) (666,556)
Transactions
with
owners
Issue of share
capital 2,259,305 5,165,060 - - - - - 7,424,365 - 7,424,365
Issue costs - (1,304,332) - - - - - (1,304,332) - (1,304,332)
Issue of
shares - - - - - - - - - -
Step
acquisition
of Subsidiary - - - - - - (152,657) (152,657) 152,658 1
At 31 December
2020
(Audited) 8,281,751 24,684,737 137,700 46,451 732,185 (457,272) (17,083,185) 16,342,367 394,113 16,736,480
---------- ------------ -------- ------------- ------------ ------------ ------------- ------------ ------------ ------------
Loss for the
period - - - - - - (667,848) (667,848) (47,023) (714,871)
Foreign
exchange
translation - - - - - (481,698) - (481,698) (21,774) (503,472)
---------- ------------ -------- ------------- ------------ ------------ ------------- ------------ ------------ ------------
Total
comprehensive
loss - - - - - (481,698) (667,848) (1,149,546) (68,797) (1,218,343)
Transactions
with
owners
Issue costs - (18,760) - - - - - (18,760) - (18,760)
Issue of
shares - - - - - - - - - -
Step
acquisition
of Subsidiary - - - - - - (67,106) (67,106) 67,106 -
At 30 June
2021
(Unaudited) 8,281,751 24,665,977 137,700 46,451 732,185 (938,970) (17,818,139) 15,106,955 392,422 15,499,377
---------- ------------ -------- ------------- ------------ ------------ ------------- ------------ ------------ ------------
BEOWULF MINING PLC
CONDENSED COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS TO 30 JUNE 2021
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
2020 6,022,446 20,824,009 137,700 46,451 732,185 (16,298,859) 11,463,932
Loss for the
period - - - - - (303,029) (303,029)
Total
comprehensive
loss
- - - - - (303,029) (303,029)
At 30 June
2020
(Unaudited) 6,022,446 20,824,009 137,700 46,451 732,185 (16,601,888) 11,160,903
------------- ------------- ---------- ------------- ------------ --------------- -------------
Loss for the
period - - - - - (566,230) (566,320)
Total
comprehensive
loss - - - - - (566,320) (566,320)
Transactions
with owners
Issue of share
capital 2,259,305 5,165,060 - - - - 7,424,365
Issue costs - (1,304,332) - - - - (1,304,332)
At 31 December
2020
(Audited)
(Unaudited) 8,281,751 24,684,737 137,700 46,451 732,185 (17,168,118) 16,714,706
------------- ------------- ---------- ------------- ------------ --------------- -------------
Loss for the
period - - - - - (686,815) (686,815)
Total
comprehensive
loss - - - - - (686,815) (686,815)
Transactions
with owners
Issue costs - (18,760) - - - - (18,760)
------------- ------------- ---------- ------------- ------------ --------------- -------------
At 30 June
2021
(Unaudited) 8,281,751 24,665,977 137,700 46,451 732,185 (17,854,933) 16,009,131
------------- ------------- ---------- ------------- ------------ --------------- -------------
BEOWULF MINING PLC
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS TO 30 JUNE 2021
(Unaudited) (Unaudited) (Audited)
6 months
6 months to to Year ended
30 June 31 Dec
30 June 2021 2020 2020
GBP GBP GBP
Cash flows from operating activities
Loss before income tax (714,871) (394,475) (1,294,691)
Depreciation charges 18,842 13,108 35,608
Impairment of exploration costs - - 98,799
Finance income (47) (583) (594)
Finance cost 88 161 203,576
Grant income (3,463) (8,257) (12,637)
Gain on sale of fixed assets (17,518) - -
Shares in Lieu - - 2,806
Amortisation of right-of-use asset 2,819 2,840 5,777
Unrealised foreign exchange 194,916 - (12,590)
Decrease / (increase)in trade
and other receivables 43,397 78,377 (2,203)
(Decrease) / increase in trade
and other payables (314,929) 31,771 97,623
------------- ------------ ------------
Net cash used in operating activities (790,766) (277,058) (878,526)
------------- ------------ ------------
Cash flows from investing activities
Purchase of intangible fixed assets (311,296) (245,440) (622,501)
Purchase of property, plant and
equipment (1,638) (58,446) (89,436)
Additional investment in Vardar - 40,000 40,000
Grant receipt - 34,925 25,796
Proceeds from sale of fixed assets 22,397 - -
Interest received 47 583 594
------------- ------------ ------------
Net cash used in investing activities (290,490) (228,378) (645,547)
------------- ------------ ------------
Cash flows from financing activities
Proceeds from issue of shares 1,392,081 - 4,941,065
Payment of share issue costs (18,760) - (1,113,348)
Lease principal and interest paid (2,869) (2,827) (5,840)
Lease interest paid (88) (161) (255)
Proceeds from borrowings - - 932,309
Interest paid - - (93,935)
------------- ------------ ------------
Net cash from / (used in) financing
activities 1,370,364 (2,988) 4,659,996
------------- ------------ ------------
Increase / (Decrease) in cash
and cash equivalents 289,108 (508,424) 3,135,923
Cash and cash equivalents at beginning
of period/year 4,329,414 1,124,062 1,124,062
Effect of foreign exchange rate
changes (209,833) 5,302 69,429
------------- ------------ ------------
Cash and cash equivalents at end
of period/year 4,408,639 620,940 4,329,414
BEOWULF MINING PLC
CONDENSED COMPANY STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS TO 30 JUNE 2021
(Unaudited) (Unaudited) (Audited)
6 months 6 months
to to Year ended
30 June 30 June 31 Dec
2021 2020 2020
GBP GBP GBP
Cash flows from operating
activities
Loss before income tax (686,815) (303,029) (869,259)
Expected credit losses 145,498 30,803 72,069
Depreciation 185 - -
Shares in Lieu - - 2,806
Finance income (47) (583) (594)
Finance costs - - 203,321
Unrealised foreign exchange 195,788 - 16,865
------------ ------------ ------------
(345,391) (272,809) (574,792)
Decrease / (increase)in trade
and other receivables 43,418 (196) (61,415)
(Decrease) / increase in trade
and other payables (216,159) 6,264 (524)
------------ ------------ ------------
Net cash used in operating
activities (518,132) (266,741) (636,731)
------------ ------------ ------------
Cash flows from investing
activities
Loans to subsidiaries (776,544) (215,097) (448,151)
Grant receipt - 34,925 25,796
Acquisition of subsidiary (200,000) (80,000) (380,000)
Interest received 47 583 594
Purchase of fixed assets - - (1,483)
------------ ------------ ------------
Net cash used in investing
activities (976,497) (259,589) (803,244)
------------ ------------ ------------
Cash flows from financing
activities
Proceeds from issue of shares 1,392,081 - 4,941,065
Payment of share issue costs (18,760) - (1,113,348)
Proceeds from borrowing - - 932,309
Interest paid - - (93,935)
------------ ------------ ------------
Net cash from financing activities 1,373,321 - 4,666,091
------------ ------------ ------------
(Decrease) / increase in cash
and cash equivalents (121,308) (526,330) 3,226,116
Cash and cash equivalents
at beginning of period/year 4,241,426 978,514 978,514
Effect of foreign exchange
rate changes (201,463) - 70,526
Cash and cash equivalents
at end of period/year 3,918,655 452,184 4,275,156
------------ ------------ ------------
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED INTERIM FOR THE
SIX MONTHS TO 30 JUNE 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 Financial Reporting Standards (IFRS)
as adopted in accordance with the provisions 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 2020.
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 period ended
30 June 2020 is unaudited and has not been reviewed by the
auditors. The financial information for the twelve months ended 31
December 2020 is an extract from the audited financial statements
of the Group and Company. The auditor's report on the statutory
financial statements for the year ended 31 December 2020 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.
Management have prepared cash flow forecasts confident that they
are taking all necessary steps to ensure that the Group has the
required cash to pursue it strategic objectives, an assertion
supported by the significant cash available at the period end. They
have therefore concluded that it is appropriate to prepare the
financial statements on a going concern basis.
3. Share Capital
(Unaudited) (Unaudited) (Unaudited)
30 June 2021 30 June 2020 31 Dec 2020
GBP GBP GBP
Allotted, issued and fully paid
Ordinary shares of 1p each 8,281,751 6,022,446 8,281,751
------------ ------------ --------------
The number of shares in issue was as follows:
Number
of shares
Balance at 1 January 2020 602,244,672
Issued during the period -
------------
Balance at 30 June 2020 602,244,672
Issued during the period 225,930,552
------------
Balance at 31 December 2020 828,175,224
Issued during the period -
------------
Balance at 30 June 2021 828,175,224
------------
4 . Intangible Assets: Group
Exploration costs As at 30 As at 31
June December
2021 2020
(Unaudited) (Audited)
GBP GBP
Cost
At 1 January 11,371,148 10,011,494
Additions for the year 311,296 612,062
Foreign exchange movements (493,074) 847,159
Impairment - (98,799)
11,189,370 11,371,916
============ ===========
The net book value of exploration costs is comprised of
expenditure on the following projects:
As at As at
30 31
June December
2021 2020
(Unaudited) (Audited)
GBP GBP
Project Country
Kallak Sweden 7,293,021 7,533,388
Ågåsjiegge Sweden 479 -
Åtvidaberg Sweden 376,551 393,303
Pitkäjärvi Finland 1,410,645 1,333,114
Rääpysjärvi Finland 47,667 47,053
Karhunmäki Finland 43,628 41,017
Merivaara Finland 36,746 36,965
Mitrovica Kosovo 1,343,738 1,387,030
Viti Kosovo 636,895 600,046
11,189,370 11,371,916
============ ===========
Total Group exploration costs of GBP 11,189,370 are currently
carried at cost in the financial statements. No impairment has been
recognised during the period, (2020: Ågåsjiegge, Joutsijärvi,
Polvela and Tammijärvi GBP 98,799 ).
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
30 June 2021 as an intangible exploration licence with a carrying
value of GBP7,293,021. 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.
5. Post balance sheet events
Beowulf announced, on 8 July 2021, the issue and allotment of
3,535,412 new ordinary shares of 1 pence each in the Company to
satisfy an exercise of share options held by Kurt Budge, CEO.
Beowulf announced, on 2 August 2021, the Company had invested a
further GBP100,000 in Vardar Minerals Ltd. The investment increases
the Company's ownership in Vardar from 48.4 per cent to
approximately 49.4 per cent. Beowulf's investment is funding
advance procurement of necessary support equipment for drilling
planned for Autumn 2021.
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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