TIDMBKY
RNS Number : 8764S
Berkeley Energia Limited
14 March 2023
BERKELEY ENERGIA LIMITED
Interim Financial Report for the Half Year Ended 31 December
2022
Informe financiero provisional correspondiente al semestre
terminado el 31 de diciembre de 2022
abn 40 052 468 569
CORPORATE DIRECTORY | DIRECTORIO CORPORATIVO
Directors Solicitors
Mr Ian Middlemas Chairman Spain
Mr Robert Behets Acting Managing Herbert Smith Freehills, S.L.P
Director
Mr Francisco Bellón Executive United Kingdom
Director Simmons & Simmons LLP
Mr Adam Parker Non-Executive Director
Australia
Thomson Geer
Company Secretary
Mr Dylan Browne Bankers
Spain
Spanish Office Santander Bank
Berkeley Minera España, S.A.
Carretera SA-322, Km 30 Australia
37495 Retortillo National Australia Bank Ltd
Salamanca Australia and New Zealand Banking
Spain Group Ltd
Telephone: +34 923 193 903
Share Registry
London Office Spain
Unit 3C, Princes House Iberclear
38 Jermyn Street Plaza de la Lealtad, 1
London SW1Y 6DN, United Kingdom 28014 Madrid, Spain
Registered Office United Kingdom
Level 9, 28 The Esplanade Computershare Investor Services
Perth WA 6000 PLC
Australia The Pavilions, Bridgewater Road,
Telephone: +61 8 9322 6322 Bristol BS99 6ZZ
Facsimile: +61 8 9322 6558 Telephone: +44 370 702 0000
Website Australia
www.berkeleyenergia.com Computershare Investor Services
Pty Ltd
Email Level 11, 172 St Georges Terrace
info@berkeleyenergia.com Perth WA 6000
Telephone: +61 8 9323 2000
Auditor
Spain
Ernst & Young España Stock Exchange Listings
Spain
Australia Madrid, Barcelona, Bilboa and
Ernst and Young Australia - Perth Valencia Stock Exchanges (Code:
BKY)
United Kingdom
London Stock Exchange (LSE Code:
BKY)
Australia
Australian Securities Exchange
(ASX Code: BKY)
CONTENTS | CONTENIDO
Directors' Report
Directors' Declaration
Consolidated Statement of Profit or Loss and Other Comprehensive
Income
Consolidated Statement of Financial Position
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
Condensed Notes to the Financial Statements
To view the following sections as well as all illustrations and
figures, please refer to the full version of the Interim Financial
Report on our website at www.berkeleyenergia.com :
Auditor's Independence Declaration
Auditor's Review Report
DIRECTORS' REPORT
The Board of Directors of Berkeley Energia Limited present their
report on the consolidated entity of Berkeley Energia Limited ("the
Company" or "Berkeley") and the entities it controlled during the
half year ended 31 December 2022 ("Consolidated Entity" or
"Group").
DIRECTORS
The names of the Directors of Berkeley in office during the half
year and until the date of this report are:
Mr Ian Middlemas Chairman
Mr Robert Behets Non-Executive Director (Acting Managing Director)
Mr Francisco Bellón Executive Director (appointed 1 July 2022)
Mr Adam Parker Non-Executive Director
Unless otherwise disclosed, Directors were in office from the
beginning of the half year until the date of this report.
OPERATING AND FINANCIAL REVIEW
Summary
Summary for and subsequent to the half year end include:
-- Appointment of Spanish Based Director
During the period, the Company strengthened the Board's
technical capacity and Spanish operating experience with the
appointment of Mr Francisco Bellón as an Executive Director.
Mr Bellón is a Mining Engineer with more than 25 years of
experience in the resources sector, including specialisation in
mineral processing. During his career, Mr Bellón has participated
in the construction, commissioning and operation of four mines in
Spain, two in South America and two in West Africa, working at an
executive level for companies listed on either the Toronto, New
York or Madrid Stock Exchange, such as Rio Narcea Gold Mines,
Lundin Mining,ESA and Duro Felguera.
Mr Bellón who is based in Salamanca, joined Berkeley in 2011 as
General Manager of Operations, and was subsequently promoted to
Chief Operating Officer in 2017. During this period, Mr Bellón has
been responsible for the Company's day-to-day operations in Spain,
and has overseen the development of the Salamanca Project
("Salamanca" or "Project") from the Scoping Study stage through to
the completion of the Definitive Feasibility Study and Front End
Engineering Design.
Mr Bellón has a Masters Degrees in Mining Engineering and
Occupational Health and Safety, Investor Relations Certification
from the Madrid Stock Exchange, and is Member of the Australasian
Institute of Mining and Metallurgy.
-- Spanish Advisory Committee
During the period, an Advisory Committee to the Board of
Berkeley's wholly owned Spanish subsidiary, Berkeley Minera España
S.L.U. ("BME"), which holds the Salamanca Project, was
established.
The Advisory Committee is comprised of Rafael Miranda, Jaime
García-Legaz and Miguel Riaño, all prominent, highly experienced,
and well-regarded Spanish businessmen with extensive networks.
The Advisory Committee has substantially strengthened Berkeley's
position in Spain, with the committee members' collective
corporate, commercial and operating expertise plus extensive
business and government networks greatly assisting the Company as
it continues to focus on resolving the current permitting
situation, and ultimately advancing the Project towards
production.
-- Project Update
In November 2022, the Company announced that it had submitted a
written notification of an investment dispute to the Prime Minister
of Spain and the Ministry for the Ecological Transition and the
Demographic Challenge ("MITECO") informing the Kingdom of Spain of
the nature of the dispute and the Energy Charter Treaty ("ECT")
breaches, and that it proposes to seek prompt negotiations for an
amicable solution pursuant to article 26.1 of the ECT.
In February 2023, the Company received formal notification from
MITECO that it had rejected the Company's administrative appeal
against MITECO's rejection of the Authorisation for Construction
for the uranium concentrate plant as a radioactive facility ("NSC
II") for the Salamanca Project.
As previously disclosed , MITECO rejected NSC II in November
2021 following an unfavourable report for the grant of NSC II
issued by the Board of the Nuclear Safety Council ("NSC") in July
2021 .
Taking this into account, Berkeley submitted an administrative
appeal against MITECO's decision under Spanish law in December
2021. MITECO has now rejected this administrative appeal.
The Company believes that MITECO has not only infringed
regulations on administrative procedures in Spain but also under
protection afforded to Berkeley under the ECT, which would imply
that the decision on the rejection of the Company's NSC II
application is not legal.
Accordingly, the Company also submitted a written notification
of an investment dispute to the Prime Minister of Spain and MITECO
in November 2022.
The notification of an investment dispute submitted to the
Spanish Government is necessary to preserve the Company's rights to
initiate international arbitration should the dispute not be
satisfactorily resolved. The Company, however, has informed the
Spanish Government that it is prepared to collaborate and remains
hopeful that the dispute can be resolved amicably through prompt
negotiations.
The dispute notice is an initial step to request amicable
negotiations to overturn the rejection of NSC II. To date, the
Company has received no correspondence from the Kingdom of Spain or
MITECO in relation to the investment dispute.
-- Exploration
A drilling program, comprising five reverse circulation ("RC")
holes for a total of 282m, designed to test the tin-lithium anomaly
defined by soil sampling at the Company's Investigation Permit,
Conchas, was completed during the period.
-- Global Nuclear Power and Uranium Market :
The outlook for nuclear power and the uranium market continued
to strengthen during the period, with select recent activity and
updates including the following:
-- Spain - Spain's seven operating nuclear reactors were
reported to have generated 20.25% of the country's electricity in
2022 with average capacity factor of the units being 90%. It was
noted that "with just 7117 MWe of installed capacity, 6% of the
total, nuclear power generated over 20% of the electricity, a
consistent and consecutive figure for over a decade." Spanish
nuclear power plants produced a total of 55.9 TWh of electricity in
2022, 3.6% more than in 2021.
-- United Kingdom - A new nuclear power plant to be built in
Suffolk was approved by the UK government. The UK government has
pledged to invest GBP700 million in the project (50% stakeholder),
which also includes Electricite de France, as well as committing to
advancing additional nuclear power projects as incorporated in the
proposed Energy Bill. Great British Nuclear is being established in
order to oversee nuclear new builds.
-- Netherlands - The lower house of the Dutch Parliament adopted
a proposal to pursue the construction of two nuclear power reactors
which the Dutch Cabinet hopes to be in operation by 2035. The
Netherlands currently operate a single reactor which entered
commercial operation in 1973, located at Borssele, the likely site
for the expansion.
-- Germany - Announced it will keep all three of its nuclear
plants operating until April 2023 to ensure the country's energy
supply remains robust amid uncertainty over Russian gas supply.
-- Poland - Announced that it had selected Westinghouse Electric
to build the country's initial nuclear power plant. The Polish
government has been seeking partners to develop 6-9 GWe of nuclear
capacity by the early 2040s and may ultimately order a total of six
Westinghouse reactors.
-- Japan - Confirmed a major nuclear power policy shift in
December to tackle an energy crisis more than a decade after the
2011 Fukushima disaster prompted it to idle most of its reactors.
Quake-prone Japan, which previously said it had no plans to build
new reactors, will now seek to replace decommissioned ones and
extend the lifespan of others, with the government aiming to boost
nuclear to as much as 22% of its power mix by 2030.
-- India - The Indian government presented its road map to
attain net-zero carbon emissions by 2070 at the recent UN
Convention on Climate Change. The national plan calls for a focus
on renewable energy sources including solar, wind and hydro power
supplemented by a "three-fold rise in nuclear installed capacity by
2032."
Other developments in the uranium market during the period
included:
-- Spain's ENUSA says it and Westinghouse Electric Company has
formalised their cooperation agreement for the manufacture of
water-water energetic reactor ("VVER") fuel. The two companies have
reached an agreement that will allow operators to diversify the
supply of nuclear fuel and reduce dependence on the current
supplier, Russia, strategically complying with the will of the
European Union to provide a real alternative in the supply made out
of fuel. The ENUSA factory in Salamanca has begun the installation
of the new production line to be ready by the end of the year.
-- Finnish mining company, Terrafame, announced plans to start
recovering natural uranium as a by-product of zinc and nickel
production at its Sotkamo mine in the north-east of the country by
the summer of 2024. The state-owned company reported that it has
completed a feasibility study related to uranium recovery and has
decided to start preparing its operations for the uranium recovery
for next year.
-- Cameco reported the first packaged uranium from McArthur
River / Key Lake following the February 2022 announcement that the
production complex would be restarted after a four year shut-down.
McArthur River / Key Lake is expected to reach steady-state
production of 15 million pounds U(3) 0(8) in 2024.
-- The latest World Energy Outlook assessment published by the
International Energy Agency ("IEA"), underscores the crucial role
which nuclear power must assume over the next three decades.
Nuclear power increases under all three of the IEA government
policy-related scenarios (Stated Policies Scenario; Announced
Pledges Scenario, and; Net Zero Emissions by 2050 Scenario). The
report observes that "As markets rebalance, renewables, supported
by nuclear power, see sustained gains." Under the Net Zero
Emissions by 2050 Scenario, an average of 24 GWe/year must be added
over the 2022-2050 period, more than doubling current nuclear
capacity (compounded average annual growth rate = 2.6%).
-- Spot market activity reportedly slowed in the period with
current term prices ending at US$47.75 per pound. Longer-term
uranium price indicators continued to remain stable and closed at
the end of December at US$51.00 per pound (Long-Term); US$56.50 per
pound (3-year forward price); and US$60.00 per pound (5-year
forward price).
-- IBEX SMALL CAP(R) index
During the period, Berkeley was included in the IBEX SMALL
CAP(R) index on the Spanish Stock Exchange. The index adjustment
took effect on 19 December 2022.
Operations
Salamanca Project Summary
The Salamanca Project is being developed in an historic uranium
mining area in Western Spain about three hours west of Madrid.
The Project hosts a Mineral Resource of 89.3Mlb uranium, with
more than two thirds in the Measured and Indicated category. In
2016, Berkeley published the results of a robust Definitive
Feasibility Study ("DFS") for Salamanca confirming that the Project
may be one of the world's lowest cost producers, capable of
generating strong after-tax cash flows.
Mineral Resource at Salamanca Project
Deposit Resource Tonnes U(3) O(8) U(3) O(8)
Category
Name (Mt) (ppm) (Mlbs)
-------------------------- ------------ -------- ----------- -----------
Retortillo Measured 4.1 498 4.5
Indicated 11.3 395 9.8
Inferred 0.2 368 0.2
--------------------------------------- -------- ----------- -----------
Total 15.6 422 14.5
--------------------------------------- -------- ----------- -----------
Zona 7 Measured 5.2 674 7.8
Indicated 10.5 761 17.6
Inferred 6.0 364 4.8
--------------------------------------- -------- ----------- -----------
Total 21.7 631 30.2
--------------------------------------- -------- ----------- -----------
Alameda Indicated 20.0 455 20.1
Inferred 0.7 657 1.0
--------------------------------------- -------- ----------- -----------
Total 20.7 462 21.1
--------------------------------------- -------- ----------- -----------
Las Carbas Inferred 0.6 443 0.6
Cristina Inferred 0.8 460 0.8
Caridad Inferred 0.4 382 0.4
Villares Inferred 0.7 672 1.1
Villares North Inferred 0.3 388 0.2
-------------------------- ------------ -------- ----------- -----------
Total Retortillo
Satellites Total 2.8 492 3.0
-------------------------- ------------ -------- ----------- -----------
Villar Inferred 5.0 446 4.9
Alameda Nth Zone 2 Inferred 1.2 472 1.3
Alameda Nth Zone 19 Inferred 1.1 492 1.2
Alameda Nth Zone 21 Inferred 1.8 531 2.1
-------------------------- ------------ -------- ----------- -----------
Total Alameda Satellites Total 9.1 472 9.5
-------------------------- ------------ -------- ----------- -----------
Gambuta Inferred 12.7 394 11.1
-------------------------- ------------ -------- ----------- -----------
Salamanca Project
Total Measured 9.3 597 12.3
Indicated 41.8 516 47.5
Inferred 31.5 395 29.6
--------------------------------------- -------- ----------- -----------
Total (*) 82.6 514 89.3
======================================= ======== =========== ===========
Project Update
The Company continued with its commitment to health, safety and
the environment as a priority.
An external audit of the Company's Environmental and Sustainable
Mining Management Systems was successfully carried out by
independent consultant AENOR during the period, with no
non-compliances and numerous strengths reported.
As previously reported, Berkeley initiated a study evaluating
the design, permitting, construction and operation of a solar power
system at the Project during the period.
The Project's location has a natural abundance of sunlight which
is conducive to solar power generation, which will become a
reliable source of low cost and carbon-free energy for the Project.
In addition to making a significant contribution to reduce carbon
emissions, the solar power system will potentially contribute to
reducing the Project operating costs.
The proposed facility will have an installed power of up to 20
MW and will be able to supply up to 68% of the power requirements
at the Project.
During the period, contracts for the engineering and design, and
environmental studies were awarded to companies based in Salamanca
who are specialists on the design of solar power systems and
environmental studies.
The engineering and design, as well as preparation of all
documents required for submission to relevant authorities, will be
completed in approximately 25 weeks, after which the permitting
process can commence.
The decision to pursue a solar power system is in line with
Berkeley's ongoing commitment to environmental sustainability and
to continue to have a positive impact on the people, environment
and society surrounding the mine.
Exploration
During the period, the Company continued with its exploration
program focusing on battery and critical metals in Spain.
The exploration initiative is targeting lithium, cobalt, tin,
tungsten and rare earths, within the Company's existing tenement
package in western Spain. Further analysis of the mineral and metal
endowment across the entire mineral rich province and other
prospective regions in Spain is also being undertaken, with a view
to identifying additional targets and regional consolidation
opportunities.
Whilst Berkeley remains focused on defending its position in
relation to the adverse resolution by MITECO and ultimately
advancing the Salamanca project towards production, the planned
battery and critical metals exploration initiative also facilitates
the Company's participation in these important, rapidly evolving,
growth sectors which are integral to the global clean energy
transition.
Investigation Permit Conchas
The Investigation Permit ("I.P.") Conchas is located 10km south
of Berkeley's Alameda deposit, in the very western part of
Salamanca province, close to the Portuguese border (Figure 1).
The tenement covers an area of 31km(2) in the western part of
the Ciudad Rodrigo Basin and is largely covered by Cenozoic aged
sediments. Only the north-western part of the tenement is uncovered
and dominated by the Guarda Batholith (Vilar Formoso-Fuentes de
Oñoro sector) intrusion. The tenement hosts a number of sites where
small-scale historical tin and tungsten mining was undertaken. In
addition, several mineral occurrences (tin, tungsten, titanium,
lithium) have been identified during historical mapping or stream
sediment sampling programs.
The Company completed initial soil sampling programs in northern
and central portions of the tenement during 2021. The sampling,
which was undertaken on a 200m by 200m grid, defined a tin-lithium
anomaly covering approximately 1.1km by 0.7km which correlated with
a mapped aplo-pegmatitic leucogranite.
An infill (100m by 100m spacing) and extension soil sampling
program was undertaken to follow-up the 2021 results. The results
of the infill program confirmed the spatial location, scale and
tenor of the tin-lithium anomaly defined in 2021 but failed to
extend the anomalism to the east (Figure 2).
The Company has also obtained a report summarising exploration
work undertaken by Billiton PLC on the I.P. Conchas between 1981
and 1983. Billiton's exploration was focused on tin and tantalum
(lithium was not taken into account) and comprised regional and
detailed geological mapping, geochemistry, trenching and limited
drilling.
The results of Berkeley's soil sampling program are encouraging
and the Company has now completed the process of verifying,
evaluating and incorporating the additional historical information
contained in the Billiton report.
A drilling program, comprising five RC holes for a total of
282m, designed to test the tin-lithium anomaly, was completed
during the period. Assay results covering a suite of 51 elements
have been recently received and are currently being processed and
interpreted.
Spanish Advisory Committee
During the period, an Advisory Committee to the Board of
Berkeley's wholly owned Spanish subsidiary, BME, which holds the
Project, was established.
The Advisory Committee is comprised of Rafael Miranda, Jaime
García-Legaz and Miguel Riaño, all prominent, highly experienced,
and well-regarded Spanish businessmen with extensive networks.
The Advisory Committee has substantially strengthened Berkeley's
position in Spain, with the committee members' collective
corporate, commercial and operating expertise plus extensive
business and government networks greatly assisting the Company as
it continues to focus on resolving the current permitting
situation, and ultimately advancing the Project towards
production.
IBEX SMALL CAP(R) index
During the period, Berkeley was included in the IBEX SMALL
CAP(R) index on the Spanish Stock Exchange. The index adjustment
took effect on 19 December 2022.
The IBEX indices measure the performance of securities listed on
the Spanish Stock Market. The IBEX SMALL CAP(R) index is a market
capitalisation weighted index adjusted by free float. It is
Euro-denominated and calculated in real-time within the European
time zone.
The IBEX SMALL CAP(R) index is composed of 30 securities listed
on the Spanish Stock Exchanges that follow certain requirements in
terms of stock market capitalisation, free floating capital, and
annual rotation of the free float capitalisation.
The Technical Advisory Committee of the IBEX INDICES reviews and
adjusts the composition of SMALL CAP(R) index on a biannual
basis.
Results of Operations
The net loss of the Consolidated Entity for the half year ended
31 December 2022 was $849,000 (31 December 2021 restated gain:
$63,804,000). Significant items contributing to the current half
year loss and the substantial differences from the previous half
year include the following:
(i) Exploration and evaluation expenses of $1,494,000 (31
December 2021: $2,177,000), which are attributable to the Group's
accounting policy of expensing exploration and evaluation
expenditure incurred subsequent to the acquisition of the rights to
explore and up to and until a decision to develop or mine is
made;
(ii) Non-cash fair value movement gain of $633,000 (31 December
2021 restated: gain of $64,078,000) on the unlisted options issued
to Singapore Mining Acquisition Co Pte Ltd (a subsidiary of the
Oman Investment Fund, formerly the State General Reserve Fund of
Oman ("SGRF")) (the "SGRF Options"). These financial liabilities
increase or decrease in size as the share price of the Company
fluctuates. During the period, 10,088,625 SGRF Options expired.
During the prior period, the fair value of the Convertible Note was
calculated using a probability-weighted payout approach on the
basis that the Convertible Note converted at 30 November 2021 at
the floor price of GBP0.27. At the date the Convertible Note
automatically converted, the valuation date share price was
GBP0.105, which resulted in a gain of $59,907,000 being recognised.
Further, during the prior period, the Company issued 186,814,815
fully paid ordinary shares in the capital of the Company to SGRF
following the automatic conversion of the convertible note in
accordance with the terms of the investment agreement and
convertible note entered into with SGRF in 2017. This resulted in
the convertible note liability being derecognised with the
Company's share capital increasing;
(iii) One off expense of $393,000 ( 31 December 2021: nil) for
the publication of a prospectus in October 2022 for the admission
of 186,814,815 fully paid ordinary shares to the London and Spanish
stock exchanges;
(iv) Foreign exchange gain of $1,220,000 (31 December 2021
restated: gain of $2,522,000) largely attributable on the US$53
million held in cash by the Group following the weakening of the
AUD against the USD by some 2% during the half year period; and
(v) Non-cash share-based payment expense of $374,000 (31
December 2021: reversal of $110,000) was recognised in respect of
incentive securities granted to directors, employees and key
consultants of the Group as part of the long-term incentive plan to
reward directors, employees and key consultants for the long-term
incentive of the Group. The Company's policy is to expense the
incentive securities over the vesting period. During the period the
Company issued 2,000,000 incentive options ("Incentive Options")
which relates to the current period expense.
Financial Position
At 31 December 2022, the Group is in an extremely strong
financial position with cash reserves of $78,860,000 (30 June 2022:
$79,943,000).
The Group had net assets of $87,545,000 at 31 December 2022 (30
June 2022: net assets of $87,633,000), a decrease of 0.1% compared
with 30 June 2022. The decrease is consistent with the decrease in
cash which has been offset by the decrease in total
liabilities.
Business Strategies and Prospects for Future Financial Years
Berkeley's strategic objective is to create long-term
shareholder value with the Company's primary focus continuing to be
on progressing the approvals required to commence construction of
the Salamanca mine and bring it into production.
To achieve its strategic objective, the Company currently has
the following business strategies and prospects:
-- Continue in the defence of the Company's rights with respect
to the Salamanca Project;
-- Continue to assess other business, development and investment
opportunities at the Salamanca Project;
-- Continue to assess other business and development
opportunities in the resources sector; and
-- Continue its exploration initiative focusing on battery and
critical metals in Spain.
All of these activities are inherently risky and the Board is
unable to provide certainty that any or all of these activities
will be able to be achieved. The material business risks faced by
the Company that are likely to have an effect on the Company's
future prospects, and how the Company manages these risks, include
but are not limited to the following:
-- Litigation risk - All industries, including the mining
industry, are subject to legal and arbitration claims.
Specifically, in November 2022, the Company submitted a written
notification of an investment dispute to the Prime Minister of
Spain and the MITECO informing the Kingdom of Spain of the nature
of a dispute and the ECT breaches relating to the Company's
rejection of NSCII, and that it proposes to seek prompt
negotiations for an amicable solution pursuant to article 26.1 of
the ECT. Berkeley will strongly defend its position and continue to
take relevant actions to pursue its legal rights regarding the
Salamanca Project. However, there is no certainty that any claim,
should it be made in the future, will be successful.
-- Mining licences and government approvals required - With the
mining licence, environmental licence and the Urbanism Licence
("UL") already obtained at the Salamanca Project, the only major
approval to commence construction at the Salamanca Project is NSC
II.
During the year ended 30 June 2021, Berkeley reported that the
NSC had issued an unfavourable report for the grant of the NSC II.
In November 2021, the Company received formal notification from
MITECO that it had rejected the NSC II application at the Company's
Salamanca Project. This decision followed the unfavourable NSC II
report issued by the NSC in July 2021.
In this regard, in December 2021, the Company submitted an
administrative appeal against MITECO's decision under Spanish law.
In the appeal, the Company refutes the NSC's assessment on the
basis that the NSC has adopted an arbitrary decision with the
technical issues used as justification to issue the unfavourable
report lacking in both technical and legal support. Furthermore,
the Company states in the appeal that MITECO has rejected the
Company's NSC II application without following a legally
established procedure, and that MITECO has infringed the Company's
right of defence, which would imply that the decision on the
rejection of the Company's NSC II application is not legal.
Berkeley also submitted further documentation to MITECO in which
the Company, with strongly supported arguments, dismantles all of
the technical issues used by the NSC as justification to issue the
unfavourable report.
Berkeley strongly refutes the NSC's assessment and notes that
all documentation submitted by the Company in relation to NCS II
has been prepared following advice from independent, nationally and
internationally recognised advisors and consultants who are experts
in their field.
However, In February 2023, the Company received formal
notification from MITECO that it had rejected the Company's
administrative appeal against MITECO's rejection of NSC II for the
Salamanca Project.
It should also be noted that more than 120 previous permits and
favourable reports have been granted by the relevant authorities at
the local, regional, federal and European Union levels in relation
to the Salamanca Project, among which nine have been from the
NSC.
The Company believes that MITECO has not only infringed
regulations on administrative procedures in Spain but also under
protection afforded to Berkeley under the ECT, which would imply
that the decision on the rejection of the Company's NSC II
application is not legal.
The Company will continue to strongly defend its position in
relation to the adverse decision by the NSC however as discussed in
the litigation risk section above.
Further, various appeals have also been made against other
permits and approvals the Company has received for the Salamanca
Project, as allowed for under Spanish law, and the Company expects
that further appeals will be made against these and future
authorisations and approvals in the ordinary course of events.
Whilst none of these appeals have been finally determined, no
precautionary or interim measures have been granted in relation to
the appeals regarding the award of licences and authorisations at
the Salamanca Project to date.
However, the successful development of the Salamanca mine will
be dependent on the granting of all permits and licences necessary
for the construction and production phases, in particular the award
NSC II which will allow for the construction of the plant as a
radioactive facility.
However, with any development project, there is no guarantee
that the Company will be successful in applying for and maintaining
all required permits and licences to complete construction and
subsequently enter into production. If the required permits and
licences are not obtained, then this could have a material adverse
effect on the Group's financial performance, which has led to a
reduction in the carrying value of assets and may materially
jeopardise the viability of the Salamanca Project and the price of
its Ordinary Shares.
Further, the Company's exploration and any future mining
activities are dependent upon the maintenance and renewal from time
to time of the appropriate title interests, licences, concessions,
leases, claims, permits, environmental decisions, planning consents
and other regulatory consents which may be withdrawn or made
subject to new limitations. The maintaining or obtaining of
renewals or attainment and grant of title interests often depends
on the Company being successful in obtaining and maintaining
required statutory approvals for its proposed activities. The
Company closely monitors the status of its mining permits and
licences and works closely with the relevant Government departments
in Spain to ensure the various licences are maintained and renewed
when required. However, there is no assurance that such title
interests, licenses, concessions, leases, claims, permits,
decisions or consents will not be revoked, significantly altered or
not renewed to the detriment of the Company or that the renewals
and new applications will be successful;
-- The Company may not successfully acquire new projects - In
conjunction with seeking to overturn the negative MITECO decision,
the Company is also searching for and assessing other new business
opportunities at the Salamanca Project but also for new business
opportunities in the resources sector which could have the
potential to build shareholder value. These new business
opportunities may take the form of direct project acquisitions,
joint ventures, farm-ins, acquisition of tenements/permits, or
direct equity participation.
The Company's success in its acquisition activities depends on
its ability to identify suitable projects, acquire them on
acceptable terms, and integrate the projects successfully, which
the Company's Board is experienced in doing. However, there can be
no guarantee that any proposed acquisition will be completed or be
successful and the Directors are not able to assess the likelihood
or timing of a successful acquisition. If a proposed acquisition is
completed the usual risks associated with a new project and/or
business activities will remain. Further, any new acquisition may
require the establishment of a new business. The Company's ability
to generate revenue from a new business will depend on the Company
being successful in exploring, identifying mineral resources and
establishing mining operations in relation to a new project. Whilst
the Directors have extensive industry experience, there is no
guarantee that the Company will be successful in exploring and
developing a new project;
-- The Company's activities are subject to Government
regulations and approvals - The Company's exploration and any
future mining activities are dependent upon the maintenance and
renewal from time to time of the appropriate title interests,
licences, concessions, leases, claims, permits, environmental
decisions, planning consents and other regulatory consents which
may be withdrawn or made subject to new limitations. The
maintaining or obtaining of renewals or attainment and grant of
title interests often depends on the Company being successful in
obtaining and maintaining required statutory approvals for its
proposed activities. The mining licence for the Salamanca Project
was granted in April 2014 and is valid until April 2044 (and
renewable for two further periods of 30 years each).
The Company closely monitors the status of its mining and
exploration permits and licences and works closely with the
relevant government departments in Spain to ensure the various
licences are maintained and renewed when required. However, there
is no assurance that such title interests, licenses, concessions,
leases, claims, permits, decisions or consents will not be revoked,
significantly altered or not renewed to the detriment of the
Company or that the renewals and new applications will be
successful.
If such title interests, licences, concessions, leases, claims,
permits, environmental decisions, planning consents and other
regulatory consents are not maintained or renewed then this could
have a material adverse effect on the Company's financial
performance and the price of its Ordinary Shares.
There can also be no assurances that the Company's interests in
its properties and licences are free from defects. The Company has
investigated its rights and believes that these rights are in good
standing. There is no assurance, however, that such rights and
title interests will not be revoked or significantly altered to the
detriment of the Company.
In April 2021, the parliament in Spain (the "Spanish
Parliament") approved an amendment to the draft climate change and
energy transition bill relating to the investigation and
exploitation of radioactive minerals (e.g. uranium). The Spanish
Parliament reviewed and approved the amendment to Article 10 under
which: (i) new applications for exploration, investigation and
direct exploitation concessions for radioactive materials, and
their extensions, would not be accepted following the entry into
force of this law; and (ii) existing concessions, and open
proceedings and applications related to these, would continue as
per normal based on the previous legislation. The new law was
published in the Official Spanish State Gazette and came into
effect in May 2021.
The Company currently holds legal, valid and consolidated rights
for the investigation and exploitation of its mining projects,
including the 30-year mining licence (renewable for two further
periods of 30 years) for the Salamanca Project, however any new
proceedings opened by the Company is now not allowed under the
aforementioned new law. This could create uncertainty and pose a
risk on future applications, renewals or proceedings the Company
may have to make in the future at the Salamanca Project or
elsewhere, which if unfavourable could have a detrimental effect on
the viability of the Salamanca Project or the Company's pursuit of
other development opportunities.
Therefore, there can be no assurances that the Company's rights
and title interests will not be challenged or impugned by third
parties or governments in the future. To the extent that any such
rights or title interests are revoked or significantly altered to
the detriment of the Company, then this could have a material
adverse effect on the Group's financial performance and the price
of its Ordinary Shares;
-- Additional requirements for capital - the ability to finance
a mining project is dependent on the Company's existing financial
position, the availability and cost of project funding and other
debt markets, the availability and cost of leasing and similar
finance packages for project infrastructure and mobile equipment,
the availability of mezzanine and offtake financing and the ability
to access equity markets to raise new capital. There can be no
guarantees that when the Company seeks to implement further
financing strategies to pursue the development of its projects that
suitable financing alternatives will be available and at a cost
acceptable to the Company;
-- The Company may be adversely affected by fluctuations in
commodity prices - The price of uranium has fluctuated widely since
the Fukushima nuclear power plant disaster in March 2011 and is
affected by further numerous factors beyond the control of the
Company. Future production, if any, from the Salamanca Project will
be dependent upon the price of uranium being adequate to make these
properties economic. The Company currently does not engage in any
hedging or derivative transactions to manage commodity price risk,
but as the Company's Salamanca Project advances, this policy will
be reviewed periodically;
-- The Group's projects are not yet in production - As a result
of the substantial expenditures involved in mine development
projects, mine developments are prone to material cost overruns
versus budget. The capital expenditures and time required to
develop new mines are considerable and changes in cost or
construction schedules can significantly increase both the time and
capital required to build the mine; and
-- Global financial conditions may adversely affect the
Company's growth and profitability - Many industries, including the
mineral resource industry, are impacted by these market conditions.
Some of the key impacts of the current financial market turmoil
include contraction in credit markets resulting in a widening of
credit risk, devaluations and high volatility in global equity,
commodity, foreign exchange and energy markets, and a lack of
market liquidity. A slowdown in the financial markets or other
economic conditions may adversely affect the Company's growth and
ability to finance its activities.
SIGNIFICANT EVENTS AFTER THE REPORTING PERIOD
(i) On 7 February 2023, the Company received formal notification
from MITECO that it had rejected the Company's administrative
appeal against MITECO's rejection of NSC II for the Salamanca
Project.
Other than as disclosed above, there were no significant events
occurring after balance date requiring disclosure.
ROUNDING
The amounts contained in the half year financial report have
been rounded to the nearest $1,000 (where rounding is applicable)
where noted ($000) under the option available to the Company under
ASIC Corporations (Rounding in Financial/Directors' Reports)
Instrument 2016/191. The Company is an entity to which this
legislative instrument applies.
AUDITOR'S INDEPENCE DECLARATION
Section 307C of the Corporations Act 2001 requires our auditors,
Ernst & Young, to provide the Directors of Berkeley Energia
Limited with an Independence Declaration in relation to the review
of the half year financial report. This Independence Declaration is
on page 23 and forms part of this Directors' Report.
Signed in accordance with a resolution of Directors .
Robert Behets
Acting Managing Director
13 March 2023
DIRECTORS' DECLARATION
In accordance with a resolution of the Directors of Berkeley
Energia Limited, I state that:
In the opinion of the Directors:
(a) the financial statements and notes are in accordance with
the Corporations Act 2001, including:
(i) complying with Accounting Standard AASB 134 Interim
Financial Reporting and the Corporations Regulations 2001; and
(ii) giving a true and fair view of the Consolidated Entity's
financial position as at 31 December 2022 and of its performance
for the half year ended on that date.
(b) the Directors Report, which includes the Operating and
Financial Review, provides a fair review of:
(i) important events during the first six months of the current
financial year and their impact on the half year financial
statements, and a description of the principal risks and
uncertainties for the remaining six months of the year; and
(ii) related party transactions that have taken place in the
first six months of the current financial year and that have
materially affected the financial position or performance of the
Group during that period, and any changes in the related party
transactions described in the last annual report that could have
such a material effect; and
(c) there are reasonable grounds to believe that the Company
will be able to pay its debts as and when they become due and
payable.
On behalf of the Board
Robert Behets
Acting Managing Director
13 March 2023
Competent Persons Statement
The information in this report that relates to the Mineral
Resource Estimate is extracted from the announcement entitled
'Annual Report 2022' dated 31 August 2022, which is available to
view on Berkeley's website at www.berkeleyenergia.com. Berkeley
confirms that: a) it is not aware of any new information or data
that materially affects the information included in the original
announcement; b) all material assumptions and technical parameters
underpinning the Mineral Resource Estimate in the original
announcement continue to apply and have not materially changed; and
c) the form and context in which the relevant Competent Persons'
findings are presented in this announcement have not been
materially modified from the original announcement.
The information in this report that relates to Exploration
Results is extracted from the announcement entitled 'Quarterly
Report June 2022' dated 29 July 2022, which is available to view on
Berkeley's website at www.berkeleyenergia.com. Berkeley confirms
that: a) it is not aware of any new information or data that
materially affects the information included in the original
announcement; b) all material assumptions and technical parameters
underpinning the Exploration Results in the original announcement
continue to apply and have not materially changed; and c) the form
and context in which the relevant Competent Persons' findings are
presented in this announcement have not been materially modified
from the original announcement.
Forward Looking Statement
Statements regarding plans with respect to Berkeley's mineral
properties are forward-looking statements. There can be no
assurance that Berkeley's plans for development of its mineral
properties will proceed as currently expected. There can also be no
assurance that Berkeley will be able to confirm the presence of
additional mineral deposits, that any mineralisation will prove to
be economic or that a mine will successfully be developed on any of
Berkeley's mineral properties.
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE
INCOME
FOR THE HALF YEARED 31 DECEMBER 2022
Half Year Half Year
Ended Ended
31 December 31 December
2022 2021 Restated
(Note 4)
Note $000 $000
--------------------------------------------- ------- -------------- ----------------
Interest income 268 15
Exploration and evaluation costs (1,494) (2,177)
Corporate and administration costs (582) (707)
Prospectus preparation costs (393) -
Business development expenses (127) (37)
Share based payments (expense)/reversal 10 (a) (374) 110
Fair value movements on financial
liabilities 6 633 64,078
Foreign exchange movements 1,220 2,522
Profit/(loss) before income tax (849) 63,804
Income tax expense - -
--------------------------------------------- ------- -------------- ----------------
Profit/(loss) after income tax (849) 63,804
--------------------------------------------- ------- -------------- ----------------
Other comprehensive income, net
of income tax:
Items that may be reclassified subsequently
to profit or loss:
Exchange differences arising on translation
of foreign operations 387 11
Other comprehensive income, net
of income tax 387 11
--------------------------------------------- ------- -------------- ----------------
Total comprehensive income/(loss)
for the half year attributable to
Members of Berkeley Energia Limited (462) 63,815
============================================= ======= ============== ================
Basic and diluted earning/(loss)
per share (cents per share) (0.19) 14.31
The above Consolidated Statement of Profit or Loss and Other
Comprehensive Income should be read in conjunction with the
accompanying notes.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2022
Note 31 December 2022 30 June 2022
$000 $000
------------------------------- ------ ------------------ --------------
ASSETS
Current Assets
Cash and cash equivalents 78,860 79,943
Other receivables 747 977
--------------
Total Current Assets 79,607 80,920
------------------------------- ------ ------------------ --------------
Non-current Assets
Property, plant and equipment 7 9,202 8,872
Other financial assets 91 97
------------------------------- ------ ------------------ --------------
Total Non-Current Assets 9,293 8,969
------------------------------- ------ ------------------ --------------
TOTAL ASSETS 88,900 89,889
------------------------------- ------ ------------------ --------------
LIABILITIES
Current Liabilities
Trade and other payables 774 1,005
Financial liabilities 8 33 669
Other liabilities 548 582
Total Current Liabilities 1,355 2,256
------------------------------- ------ ------------------ --------------
TOTAL LIABILITIES 1,355 2,256
------------------------------- ------ ------------------ --------------
NET ASSETS 87,545 87,633
=============================== ====== ================== ==============
EQUITY
Issued capital 9 206,404 206,404
Reserves 10 (1,563) (2,187)
Accumulated losses (117,296) (116,584)
------------------------------- ------ ------------------
TOTAL EQUITY 87,545 87,633
=============================== ====== ================== ==============
The above Consolidated Statement of Financial Position should be
read in conjunction with the accompanying notes.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE HALF YEARED 31 DECEMBER 2022
Foreign
Share Currency
Issued Based Payments Translation Accumulated
Capital Reserve Reserve Losses Total
$000 $000 $000 $000 $000
As at 1 July 2022 206,404 341 (2,528) (116,584) 87,633
Total comprehensive
income for the period:
Net loss for the period - - - (849) (849)
Other comprehensive
income/(loss):
Exchange differences
arising on translation
of foreign operations - - 387 - 387
------------------------------- --------- ---------------- ------------- ------------ ---------
Total comprehensive
income/(loss) - - 387 (849) (462)
------------------------------- --------- ---------------- ------------- ------------ ---------
Expiry of Incentive Options - (137) - 137 -
Recognition of share-based
payment expense - 374 - - 374
As at 31 December 2022 206,404 578 (2,141) (117,296) 87,545
=============================== ========= ================ ============= ============ =========
Restated as at 1 July
2021 169,862 442 (2,014) (181,622) (13,332)
Total comprehensive
income for the period:
Restated net profit for
the period - - - 63,804 63,804
Other comprehensive
income
Exchange differences
arising on translation
of foreign operations - - 11 - 11
------------------------------- --------- ---------------- ------------- ------------ ---------
Restated total comprehensive
income - - 11 63,804 63,815
------------------------------- --------- ---------------- ------------- ------------ ---------
Issue of ordinary shares
restated 36,635 - - - 36,635
Share issue costs (93) - - - (93)
Lapse of unvested Performance
Rights - (148) - - (148)
Share-based payment expense - 38 - - 38
------------------------------- --------- ---------------- ------------- ------------ ---------
As at 31 December 2021
(restated) 206,404 332 (2,003) (117,818) 86,915
=============================== ========= ================ ============= ============ =========
The above Consolidated Statement of Changes in Equity should be
read in conjunction with the accompanying notes.
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE HALF YEARED 31 DECEMBER 2022
Half Year
Half Year Ended Ended
31 December 31 December
2022 2021
$000 $000
------------------------------------------- ---------------- -------------
Cash flows from operating activities
Payments to suppliers and employees (2,666) (2,937)
Interest received 268 15
Net cash outflow from operating activities (2,398) (2,922)
------------------------------------------- ---------------- -------------
Cash flows from financing activities
Transaction costs from issue of securities - (93)
Net cash outflow from financing activities - (93)
------------------------------------------- ---------------- -------------
Net decrease in cash and cash equivalents
held (2,398) (3,015)
Cash and cash equivalents at the beginning
of the period 79,943 79,066
Effects of exchange rate changes on cash
and cash equivalents 1,315 2,572
------------------------------------------- ---------------- -------------
Cash and cash equivalents at the end of
the period 78,860 78,623
=========================================== ================ =============
The above Consolidated Statement of Cash Flows should be read in
conjunction with the accompanying notes.
CONDENSED NOTES TO THE FINANCIAL STATEMENTS
FOR THE HALF YEARED 31 DECEMBER 2022
1. REPORTING ENTITY
Berkeley Energia Limited is a company domiciled in Australia.
The interim financial report of the Company is as at and for the
six months ended 31 December 2022.
The annual financial report of the Company as at and for the
year ended 30 June 2022 is available upon request from the
Company's registered office or is available to download from the
Company's website at www.berkeleyenergia.com .
2. STATEMENT OF COMPLIANCE
The interim financial report is a general purpose financial
report which has been prepared in accordance with Accounting
Standard AASB 134: Interim Financial Reporting and the Corporations
Act 2001.
This interim financial report does not include all the
information of the type normally included in an annual financial
report. Accordingly, this report is to be read in conjunction with
the annual report of Berkeley Energia Limited for the year ended 30
June 2022 and any public announcements made by Berkeley Energia
Limited during the interim reporting period in accordance with the
continuous disclosure requirements of the Corporations Act
2001.
(a) Basis of Preparation of Half Year Financial Report
The amounts contained in the half year financial report have
been rounded to the nearest $1,000 (where rounding is applicable)
under the option available to the Company under ASIC Corporations
(Rounding in Financial/Directors' Reports) Instrument 2016/191.
The financial statements have been prepared on the going concern
basis, which contemplates the continuity of normal business
activity and the realisation of assets and the settlement of
liabilities in the normal course of business.
(b) Historical cost convention
These financial statements have been prepared under the
historical cost convention, as modified where applicable by the
revaluation of certain financial assets and liabilities at fair
value through profit or loss.
3. SIGNIFICANT ACCOUNTING POLICIES
Accounting policies applied by the Consolidated Entity in this
consolidated interim financial report are the same as those applied
by the Consolidated Entity in its consolidated financial report for
the year ended 30 June 2022.
In the current period, the Group has adopted all of the new and
revised Accounting Standards and Interpretations issued by the
Australian Accounting Standards Board (the AASB) that are relevant
to its operations and effective for annual reporting periods
beginning on or after 1 July 2022.
New and revised Standards and amendments thereof and
Interpretations effective for the current half year that are
relevant to the Group include:
-- AASB 2020-3 Amendment to AASB 9 - Test for Derecognition of Financial Liabilities
-- Conceptual Framework and Financial Reporting
The adoption of the aforementioned standards has resulted in no
impact on interim financial statements of the Group as at 31
December 2022.
(a) Issued standards and interpretations not early adopted
Australian Accounting Standards and Interpretations that have
recently been issued or amended but are not yet effective have not
been adopted by the Group for the reporting period ended 31
December 2022. Those which may be relevant to the Group are set out
in the table below, but these are not expected to have any
significant impact on the Group's financial statements:
Standard/Interpretation Application Application
Date of Date for
Standard Company
AASB 2020-6 Amendments to Australian Accounting 1 January 1 July 2023
Standards - Classification of Liabilities as 2023
Current or Non-Current - Deferral of Effective
Date
------------ ------------
AASB 2021-2 Amendments to Australian Accounting 1 January 1 July 2023
Standards - Disclosure of Accounting Policies 2023
and Definition of Accounting Estimates
------------ ------------
AASB 2020-1 Amendments to Australian Accounting 1 January 1 July 2024
Standards - Classification of Liabilities as 2024
Current or Non-Current
------------ ------------
AASB 2021-7(a-c) Amendments to Australian 1 January 1 July 2025
Accounting Standards - Effective Date of Amendments 2025
to AASB 10 and AASB 128 and Editorial Corrections
------------ ------------
4. ADJUSTMENTS TO THE COMPARATIVE PERIOD
The Group reassessed the valuation of the Convertible Note in
2021. Details of the change in fair value measurement of the
Convertible Note liability are included in the 2022 Annual Report.
The 31 December 2021 comparatives have been restated in these
financial statements.
Impact on consolidated statement of profit or loss and other
comprehensive income
----------------------------------------------------------------------------------------------
31 December
2021 31 December
as previously 31 December 2021
disclosed 2021 adjustments Restated
$000 $000 $000
------------------------------------------- --------------- ------------------ ------------
Fair value movement on financial
liabilities 4,171 59,907 64,078
Foreign exchange movements 1,640 882 2,522
Profit/(loss) before income tax 3,015 60,789 63,804
Profit/(loss) after income tax 3,015 60,789 63,804
Other comprehensive income, net of
income tax 11 - 11
------------------------------------------- --------------- ------------------ ------------
Total comprehensive income for the
year attributable to Members of Berkeley
Energia Limited 3,026 60,789 63,815
=========================================== =============== ================== ============
5. SEGMENT INFORMATION
AASB 8 requires operating segments to be identified on the basis
of internal reports about components of the Consolidated Entity
that are regularly reviewed by the chief operating decision maker
in order to allocate resources to the segment and to assess its
performance.
The Consolidated Entity operates in one operating segment, being
exploration for mineral resources within Spain. This is the basis
on which internal reports are provided to the Directors for
assessing performance and determining the allocation of resources
within the Consolidated Entity. All material non-current assets
excluding financial instruments are located in Spain.
6. FAIR VALUE MOVEMENTS
Consolidated
31 December
Consolidated 2021
31 December Restated
2022
$000 $000
---------------------------------------------- -------------- --------------
Fair value movement on financial liabilities
through profit and loss 633 64,078
---------------------------------------------- -------------- --------------
Please refer to note 8 for further disclosure.
7. NON-CURRENT ASSETS - PROPERTY, PLANT AND EQUIPMENT
Land
$000
Carrying amount at 1 July 2022 8,872
Foreign exchange differences 330
Carrying amount at 31 December 2022 9,202
========================================================= =====
- at cost 9,202
- accumulated depreciation, amortisation and impairment -
8. FINANCIAL LIABILITIES
Consolidated Consolidated
31 December 30 June 2022
2022
$000 $000
------------------------------------ -------------- ---------------
(a) Financial liabilities at fair
value through profit and loss:
SGRF Options 33 669
------------------------------------ -------------- ---------------
33 669
==================================== ============== ===============
Consolidated Consolidated
30 June 31 December
2022 2022
---------------------- ---------------- ----------- ---------- -------------
Foreign
Fair Value Exchange
Opening Balance Change Loss Total
$000 $000 $000 $000
---------------------- ---------------- ----------- ---------- -------------
(b) Reconciliation:
SGRF Options 669 (633) (3) 33
---------------------- ---------------- ----------- ---------- -------------
Total fair value 669 (633) (3) 33
====================== ================ =========== ========== =============
(c) Fair Value Estimation
The fair value of the SGRF Options was determined using a
binomial option pricing model. The fair value movement of the SGRF
Options has been recognised in the Statement of Profit and Loss.
Fair value measurements are a Level 2 valuation in the fair value
hierarchy.
The reporting date fair values of the SGRF Options were
estimated using the following assumptions:
31 December 2022 Tranche 2 Tranche 3
---------------------------- ------------ ------------
Exercise price GBP0.750 GBP1.000
Valuation date share price GBP0.153 GBP0.153
Dividend yield(1) - -
Volatility(2) 80% 80%
Risk-free interest rate 3.45% 3.45%
Number of SGRF Options 15,132,973 25,221,562
Issue date 30 Nov 2017 30 Nov 2017
Estimated Expiry date 31 May 2023 30 Nov 2023
Fair value (GBP) GBP0.0001 GBP0.0007
Fair value ($) $0.0001 $0.0012
---------------------------- ------------ ------------
(1) The dividend yield reflects the assumption that the current
dividend payout will remain unchanged.
(2) The expected volatility reflects the assumption that the
historical volatility is indicative of future trends, which may not
necessarily be the actual outcome.
9. CONTRIBUTED EQUITY
(a) Issued and Paid Up Capital
Consolidated Consolidated
31 December 30 June 2022
2022
$000 $000
----------------------------------------- -------------- ---------------
445,797,000 (30 June 2022: 445,797,000)
fully paid ordinary shares 206,404 206,404
----------------------------------------- -------------- ---------------
(b) Movements in Ordinary Share Capital during the Six Month Period ended 31 December 2022:
There were no movements in fully paid ordinary shares during the
past six months.
10. RESERVES
Consolidated Consolidated
31 December 30 June 2022
2022
$000 $000
-------------------------------------- -------------- ---------------
Share based payments reserve (Note
10 (a)) 578 341
Foreign currency translation reserve (2,141) (2,528)
(1,563) (2,187)
====================================== ============== ===============
(a) Movements in Options during the Six Month Period ended 31 December 2022:
Number of Options
Date Details '000 $000
------------------ -------------------------------------- ------------------ ------
1 Jul 22 Opening Balance 6,600 341
23 Nov 22 Issue of Incentive Options 2,000 -
31 Dec 22 Expiry of unvested Incentive Options (2,900) (137)
Jul 22 to Dec 22 Share based payment expense - 374
31 Dec 22 Closing Balance 5,700 578
================== ====================================== ================== ======
11. DIVIDENDS PAID OR PROVIDED FOR
No dividend has been paid or provided for during the half year
(2021: nil).
12. FAIR VALUE OF FINANCIAL INSTRUMENTS
The majority of the Group's financial instruments consist of
those which are measured at amortised cost including trade and
other receivables, security bonds, trade and other payables and
other financial liabilities. The carrying amount of these financial
assets and liabilities approximate their fair value. Please refer
to notes 6 and 8 for details on the fair value of non-cash settled
financial liabilities classified as fair value through profit and
loss.
13. CONTINGENT LIABILITIES
There have been no changes to contingent liabilities since the
date of the last annual report.
14. RELATED PARTY DISCLOSURE
Balances and transactions between the Company and its
subsidiaries, which are related parties to the Company, have been
eliminated on consolidation. There have been no other transactions
with related parties during the half-year ended 31 December 2022,
other than remuneration with Key Management Personnel.
15. SUBSEQUENT EVENTS AFTER BALANCE DATE
(i) On 7 February 2023, the Company received formal notification
from MITECO that it had rejected the Company's administrative
appeal against MITECO's rejection of NSC II for the Salamanca
Project.
Other than as disclosed above, there were no significant events
occurring after balance date requiring disclosure.
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