TIDMCRTM
RNS Number : 1274J
Critical Metals PLC
25 April 2022
Critical Metals plc / EPIC: CRTM / Market: Main Market / Sector:
Closed End Investments
25 April 2022
Critical Metals plc ("Critical Metals" or the "Company")
Interim Results
Critical Metals plc, an investment company established to target
opportunities in the critical and strategic metals sector , is
pleased to present its interim results for the six-month period
ended 31 December 2021.
Highlights
-- Advanced agreement to acquire controlling stake in the
copper/cobalt project located within Small Scale Mining License
PEPM 14784 (the "Mining Licence") in the Democratic Republic of
Congo (the "Molulu Project").
-- Intensive negotiations were conducted throughout the period
to acquire a majority stake in the Mining Licence from the existing
owners of Amani Mining Katanga SA ("AMK"). Negotiations took place
between AMK, Madini Occidental Ltd Mauritius and the Company,
including extensive due diligence, contract renegotiations, and
financial analysis across three jurisdictions.
-- Management continued to investigate other potential
acquisition opportunities during the reporting period across a
variety of jurisdictions and commodities.
-- Landmark Molulu Project substantially progressed and, once
completed, is expected to deliver near-term cash flows to support
future acquisitive growth amid a commodity super cycle and record
metal prices.
-- Post-period end, the Company is working towards completion of
the Molulu Project Acquisition and readmission of the enlarged
group to the Standard List of the London Stock Exchange .
For further information on the Company please visit
www.criticalmetals.co.uk or contact :
Russell Fryer Critical Metals plc Tel: +44 (0)20
7236 1177
Rory Murphy / Strand Hanson Limited Tel: +44 (0)20
James Bellman Financial Adviser 7409 3494
Lucy Williams Peterhouse Capital Tel: +44 (0)20
/ Heena Karani Limited, Corporate 7469 0936
Broker Tel: +44 (0)20
7469 0933
O onagh Reidy St Brides Partners Tel: +44 (0)20 7236 1177
/ Catherine Leftley Ltd,
/ Financial PR
Chairman's Statement
I am pleased to provide these interim results as Critical Metals
progresses towards completion of the Molulu Acquisition.
Critical Metals entered the market well-capitalised, with a low
monthly expenditure, while investigating over twenty potential
acquisition opportunities.
As announced on 20 May 2021, the Board identified and agreed to
invest in an exciting copper and cobalt project, the Molulu
Project, located in the Democratic Republic of the Congo
("DRC").
Our first proposed acquisition, a controlling stake in this
copper/cobalt project, is expected to provide the Company with
near-term cash flows that will support future aggressive
acquisitive growth.
The past six months has been dominated by finalising this first
acquisition of a majority stake in the Molulu Project mining
licence from Amani Mining Katanga SA.
As this transaction spans three different jurisdictions, the
last ten months have been extraordinarily busy as the Board has
negotiated and re-negotiated agreements, conducted ongoing
financial analysis, completed extensive 'on the ground' due
diligence, and navigated the dynamic mining regulatory environment
in the DRC, as the world emerges from a Covid-centric world into a
prosperous environment of renewed global growth.
While there have been frustrations with the time it is taking to
finalise this proposed transaction, we are confident that
completion will occur in middle of 2022 and events post period end
have paid heed to this thesis.
On completion, our first products to be sold into the market are
copper and cobalt, both of which have excellent global demand
characteristics and are experiencing robust pricing. The market
fundamentals are ripe for a new copper/cobalt mine to emerge, given
the expected shortfall in copper supply coupled with surging demand
for the red metal, with cobalt also hailed as a "transition metal"
- both crucial for the 'Net Zero' transition, electric vehicle
batteries and innovative aerospace applications.
This urgent need for metals critical to the global energy
transition was highlighted by President Joe Biden invoking the
Defence Production Act, which will see the US administration
providing financial support for the mining and processing of
critical minerals, including copper and cobalt.
I wish to personally thank my fellow board members Anthony
Eastman and Marcus Edwards-Jones, for their experienced guidance,
deep wisdom, and incredible patience since Critical Metals listed.
I also wish to thank our UK, Belgian, Congolese, and Mauritius
advisers for their expertise and patience during this exciting
period in our growth trajectory.
Importantly, I want to express my heartfelt thanks to our loyal
shareholders who have patiently stood by us while we advance on
closing the Molulu Project acquisition and seek to rapidly push it
into production thereafter.
We look forward to closing the Molulu Project acquisition in the
months ahead. With copper currently around the US$10,000/t mark and
cobalt around $80,000/t, we believe now is an optimal time to
acquire such an asset in a mineral-rich location. We will be
adhering to the best possible mining practices and will develop our
ESG policy post readmission, which will guide us as we develop this
exciting asset responsibly.
The Board believes the Company is perfectly positioned to take
advantage of the 'Green Energy' and 'Electrification' trends while
supporting accelerating global growth, and we are highly
enthusiastic about the exciting journey ahead.
Russell S. Fryer
Chief Executive Officer
25 April 2022
Statement of Comprehensive Notes 6 months 6 months 12 months
Income for the six to 31 to 31 to 30
months ended 31 December December December June 2021
2021 2021 2020 (unaudited) (audited)
(unaudited)
GBP GBP GBP
---------------------------- ------ ------------- ------------------ -----------
Revenue
Revenue from continuing
operations - - -
------------- ------------------ -----------
- - -
Expenditure
Costs associated
with listing - (64,574) (122,306)
Other expenses (284,554) (87,537) (225,278)
------------- ------------------ -----------
(284,554) (152,111) (347,584)
Loss on ordinary
activities before
taxation (284,554) (152,111) (347,584)
Taxation on loss -
on ordinary activities - -
------------- ------------------ -----------
Total comprehensive
income for the year
attributable to the
owners of the company (284,554) (152,111) (347,584)
------------- ------------------ -----------
Earnings per share
(basic and diluted)
attributable to the
equity holders (pence) 3 (0.68) (0.68) (1.18)
------------- ------------------ -----------
The statement of comprehensive income has been prepared on the
basis that all operations are continuing operations.
Statement of Notes 31 December 31 December 30 June
Financial Position 2021 (unaudited) 2020 (unaudited) 2021 (audited)
for the six months
ended 31 December
2021
GBP GBP GBP
--------------------- ------ ------------------ ------------------ ----------------
CURRENT ASSETS
Trade and other
receivables 139,702 24,483 17,851
Cash at bank
and in hand 1,069,770 630,148 1,483,544
------------------ ------------------ ----------------
1,209,473 654,631 1,501,395
------------------ ------------------ ----------------
TOTAL ASSETS 1,209,472 654,631 1,501,395
------------------ ------------------ ----------------
CURRENT LIABILITIES
Trade and other
payables 23,686 77,269 31,055
------------------ ------------------ ----------------
TOTAL LIABILITIES 23,686 77,269 31,055
------------------ ------------------ ----------------
NET ASSETS 1,185,786 577,362 1,470,340
------------------ ------------------ ----------------
EQUITY
Called up share
capital 4 208,298 151,503 208,298
Share premium
account 4 1,735,315 749,497 1,735,315
SBP reserve 5 45,838 - 45,838
Retained earnings (803,665) (323,638) (519,111)
------------------ ------------------ ----------------
TOTAL EQUITY 1,185,786 577,362 1,470,340
------------------ ------------------ ----------------
Statement of Changes SBP Reserve
in Equity
for the six months
ended 31 December
2021 Issued Share Capital Share Premium Retained Earnings Total Equity
GBP GBP GBP GBP GBP
---------------------- --------------------- -------------- ------------- ------------------ -------------
As at 1 July 2020 71,428 68,572 - (171,527) (31,527)
Total comprehensive
income for the period - - - (152,111) (152,111)
Shares issued during
the period 80,075 720,675 - - 800,750
Shares issue costs - (39,750) - - (39,750)
--------------------- -------------- ------------- ------------------ -------------
As at 31 December 2020 151,503 749,497 - (323,638) 577,362
--------------------- -------------- ------------- ------------------ -------------
Total comprehensive
income for the period - - - (195,473) (195,473)
Shares issued during
the period 56,795 985,818 - - 1,042,613
Warrants issued during
the period - - 45,838 - 45,838
--------------------- -------------- ------------- ------------------ -------------
As at 30 June 2021 208,298 1,735,315 45,838 (519,111) 1,470,340
--------------------- -------------- ------------- ------------------ -------------
Total comprehensive
income for the period - - - (284,554) (284,554)
Shares issued during - - - - -
the period
Share issue costs - - - - -
--------------------- -------------- ------------- ------------------ -------------
As at 31 December 2021 208,298 1,735,315 45,838 (803,665) 1,185,786
--------------------- -------------- ------------- ------------------ -------------
Share capital Amount subscribed for share capital at nominal
value.
Share premium Amount subscribed for share capital in excess
of nominal value.
SBP reserve Cumulative charge recognised under IFRS 2 in respect
of share-based payment awards.
Retained earnings Cumulative other net gains and losses recognised
in the financial statements.
Statement of Cashflow for 31 December 31 December 30 June
the six months ended 31 December 2021 (unaudited) 2020 (unaudited) 2021 (audited)
2021
GBP GBP GBP
------------------------------------ ------------------ ------------------ ----------------
Cash from operating activities
Loss for the year (284,554) (152,111) (347,584)
Adjustments for:
Foreign exchange - - 8,009
------------------ ------------------ ----------------
Operating cashflow before
working capital movements (284,554) (152,111) (339,575)
Increase in trade and other
receivables (106,596) (24,066) (17,435)
Decrease increase in trade
and other payables (22,624) (16,747) (62,960)
------------------
Net cash used in operating
activities (413,774) (192,924) (419,970)
------------------ ------------------ ----------------
Cash from financing activities
Proceeds on the issue of
shares - 761,000 1,849,451
------------------
Net cash from financing activities - 761,000 1,849,451
------------------ ------------------ ----------------
Net (decrease) / increase
in cash and cash equivalents (413,774) 568,076 1,429,481
Cash and cash equivalents
at beginning of year 1,483,544 62,072 62,072
Foreign exchange - - (8,009)
------------------ ------------------ ----------------
Cash and cash equivalents
at end of period 1,069,770 630,148 1,483,544
------------------ ------------------ ----------------
Notes to the financial statements for the 6 months ended 31
december 2021
1. General Information
The condensed interim financial statements of Critical Metals
plc (the "Company") for the six-month period ended 31 December 2021
have been prepared in accordance with Accounting Standard IAS 34
Interim Financial Reporting.
The interim report does not include all the notes of the type
normally included in an annual financial report. Accordingly, this
report is to be read in conjunction with the annual report for the
year ended 30 June 2021, which was prepared in accordance with UK
adopted International Accounting Standards (IFRS) and the Companies
Act 2006, and any public announcements made by Critical Metals plc
during the interim reporting period and since.
These condensed interim financial statements do not constitute
statutory accounts as defined in Section 434 of the Companies Act
2006. The Group's statutory financial statements for the year ended
30 June 2021 prepared under IFRS have been filed with the Registrar
of Companies. The auditor's report on those financial statements
was unqualified and did not contain a statement under Section
498(2) of the Companies Act 2006. These condensed interim financial
statements have not been audited.
Basis of preparation - going concern
The interim financial statements have been prepared under the
going concern assumption, which presumes that the Group will be
able to meet its obligations as they fall due for the foreseeable
future.
At 31 December 2021 the Group had cash reserves of GBP1,069,770
(30 June 2021: GBP1,483,544 / 31 December 2020: GBP630,148).
The Directors have made an assessment of the Company's ability
to continue as a going concern and are satisfied that the Company
has adequate resources to continue in operational existence for the
foreseeable future. The Company, therefore, continues to adopt the
going concern basis in preparing its consolidated financial
statements.
The financial information of the Company is presented in British
Pounds Sterling (GBP).
Accounting policies
The accounting policies adopted are consistent with those of the
previous financial year and corresponding interim reporting
period.
Critical accounting estimates and judgements
The preparation of interim financial information requires
management to make judgements, estimates and assumptions that
affect the application of accounting policies and the reported
amounts of assets and liabilities and the reported amounts of
income and expenses during the reporting period. Although these
estimates are based on management's best knowledge of current
events and actions, the resulting accounting estimates will, by
definition, seldom equal related actual results.
In preparing the interim financial information, the significant
judgements made by management in applying the Company's accounting
policies and the key sources of estimation uncertainty were the
same as those that applied to the financial statements for the year
ended 30 June 2021.
1.1. New and amended standards adopted by the group
A number of new or amended standards became applicable for the
current reporting period. These new/amended standards do not have a
material impact on the Company, and the Company did not have to
change its accounting policies or make retrospective adjustments as
a result of adopting these standards.
The Company is not affected materially by the effects of
seasonality. Regardless of this fact comparative figures to the
period ending 31 December 2020 have been included for comparability
and increase the comprehensibility of the financial statements.
The directors have concluded that there are no key assumptions
concerning the future and other key sources of estimation
uncertainty at the reporting date that have a significant risk of
causing a material adjustment to the carrying amounts of assets and
liabilities within the next financial year.
2. Segmental analysis
The Company manages its operations in one segment, being seeking
a suitable investment. The results of this segment are regularly
reviewed by the board as a basis for the allocation of resources,
in conjunction with individual investment appraisals, and to assess
its performance.
3. EARNINGS per share
The calculation of the basic and diluted earnings per share is
calculated by dividing the profit or loss for the year by the
weighted average number of ordinary shares in issue during the
year
6 months 6 months 12 months
to 31 December to 31 December to 30 June
2021 2020 2021
-------------------------------------- ---------------- ---------------- ------------
Loss for the year from continuing
operations - GBP (284,554) (152,111) (347,584)
Weighted number of ordinary shares
in issue 41,659,735 22,380,252 29,398,013
---------------- ---------------- ------------
Basic earnings per share from
continuing operations - pence (0.68) (0.68) (1.18)
---------------- ---------------- ------------
There is no difference between the diluted loss per share and
the basic loss per share presented. Share options and warrants
could potentially dilute basic earnings per share in the future but
were not included in the calculation of diluted earnings per share
as they are anti-dilutive for the year presented. At period end
9,240,714 warrants were in issue giving the rights to purchase
shares on a 1:1 basis.
4. Share capital and share premium
Number of Share Share Total
Shares on Capital Premium GBP
Issue GBP GBP
--------------------- ---------------------- ------------------- --------------------- ---------------------------------------
Balance
at 30
June
2020 14,285,714 71,428 68,572 140,000
Ordinary shares of
GBP0.005 each
issued at par on
29 Sep 2020 16,015,000 80,075 720,675 800,750
Share issue
expenses in period - (39,750) (39,750)
Balance
at 31
December
2020 30,300,714 151,503 749,497 901,000
---------------------- ------------------- --------------------- ---------------------------------------
Exercise of GBP0.10
warrants during
the year 10,450,000 52,250 992,750 1,045,000
Exercise of GBP0.05
warrants during
the year 909,021 4,545 40,906 45,451
Cost of share
issues - - (47,838) (47,838)
---------------------- ------------------- --------------------- ---------------------------------------
Balance
at 30
June
2021 41,659,735 208,298 1,735,315 1,943,613
---------------------- ------------------- --------------------- ---------------------------------------
Balance
at 31
December
2021 41,659,735 208,298 1,735,315 1,943,613
---------------------- ------------------- --------------------- ---------------------------------------
The Company has only one class of share. All ordinary shares
have equal voting rights and rank pari passu for the distribution
of dividends and repayment of capital.
5. SBP RESERVE
As at
30 December 2021 GBP
Broker & advisory placing warrants Issued 45,838
----------------------
At 31 December 2021 45,838
----------------------
On 29 September 2020, the Company issued 1,265,000 warrants to
various advisors along with 909,021 warrants to Peterhouse Capital
as broker for services rendered prior to admission, valid for 24
months from Admission to subscribe for ordinary shares at 0.05p per
share.
On 29 September 2020, the Company also issued 140,000 warrants
to various advisors for services rendered prior to Admission, valid
for 24 months from Admission to subscribe for ordinary shares at
0.10p per share.
The fair value assigned to the advisor and broker warrants for
the period ending 30 June 2021 was GBP45,838 (2020: GBPnil) The
referred value above was calculated using the Black Scholes pricing
model and the inputs into the model were as follows:
Date of grant Risk
Number Share Exercise Expected Expected free Expected
of warrants Price Price volatility life rate dividends
--------------- ------------- -------- --------- ------------ --------- ------ -----------
29 Sep 2020 1,265,000 GBP0.05 GBP0.05 50.00% 2 0.01% 0.00%
29 Sep 2020 140,000 GBP0.05 GBP0.10 50.00% 2 0.01% 0.00%
--------------- ------------- -------- --------- ------------ --------- ------ -----------
6. Events subsequent to PERIOD end
There were no events subsequent to period end requiring
disclosure.
A copy of these results will be made available on the Company's
website at www.critical metals.co.uk.
**ENDS**
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