TIDMAXM
RNS Number : 8342A
Alexander Mining PLC
03 June 2019
3 June 2019
Alexander Mining plc
Audited Results for the Year Ended 31 December 2018
Alexander Mining plc ("Alexander" or the "Company"), the
AIM-listed mining, minerals and metals processing technology
company, announces its audited results for the year ended 31
December 2018.
Highlights
-- Significant progress with commercialisation efforts for
copper, cobalt and zinc oxide projects in several target countries;
including Turkey with Deep South Resources Inc. at the polymetallic
Kapili Tepe property and with Proses Mühendislik, Danı manlık, İn
aat ve Tasarım AS. for the establishment of a semi industrial scale
processing plant for lower grade oxide zinc ores.
-- Continuing and increasingly broad mining industry interest in
using AmmLeach(R) for base metals recovery from amenable deposits
as the focus on limiting capital deployment and reduction in All in
Sustaining Costs ("AISC") for mines remains a priority for the
global mining industry.
-- Continued granting of important patents for leaching of base
metals oxides using AmmLeach(R) and sulphides using HyperLeach(R)
in key mining jurisdictions.
-- Research and development HyperLeach(R) initiatives hold encouraging potential.
-- Investigating a range of potentially complementary and value
accretive corporate opportunities in the natural resources
sector.
Chairman's Statement & Review of the Year
Dear Shareholders and Investors
Herewith I take pleasure on behalf of your Board of Directors in
presenting for your consideration the Company's results for the
year ended 31 December 2018, along with commentary on the operating
environment and outlook.
The year under review continued to show sentiment variation in
the global mining sector but with an increased and positive focus
on key infrastructure commodities and energy metals. Albeit this
was still tempered to some degree by ongoing risk around resource
nationalism and increased royalty requirements in some countries.
In general, the mining and natural resources investment market
remained neutral.
The continuing volatile political environment in the USA, UK and
Eurozone (Brexit), with fears that China's growth was catching a
significant cold and slowing down, drove precious metals' prices
for gold, silver and, notably, palladium higher. There was
increasing demand for risk hedging against government and public
debt levels, US dollar uncertainty and potential for its reserve
status to be replaced by the IMF's SDR (Special Drawing Rights)
instrument to mitigate general fiat currency failure and its
pre-emptive replacement by an electronic monetary system.
The price of infrastructure and energy focused base metals,
Alexander's main area of activity, and related metals mining
development equities continued to rise. This was due to LME stocks
depletion, robust and increasing supply demand, and continued
significant but focused capital inflows. There has also been a
reset due to the well-publicised failure of a significant number of
crypto token offerings. With the crypto market losing 80% of its
value, this has severely dampened the significant funding
enthusiasm of the previous year and which diverted capital from the
junior resources investment market. Accordingly, growing investment
in exploration and development activity in the infrastructure
commodities and energy storage or battery metals has continued
during the year and underpinned further potential price rises.
The key operating environment features for the Company
identified last year and listed below continued into the current
reporting period and we expect these to continue impacting in the
year ahead and beyond.
-- Junior mining company valuations remain generally moribund,
with the exception of those with diversified portfolios of precious
metals and battery metals projects or good polymetallic deposits,
which continue to trend upwards.
-- Basic AISC improvements appear to have reached their zenith.
However, the focus remains with capital investment in technologies
in search of further productivity gains to sustain lowest cost
quartile performance in the mining sector.
-- Market consolidation of companies' positions in highly
prospective brownfield mining districts through joint-ventures,
mergers and acquisitions migrated upwards to the gold majors,
notably in the Barrick-Randgold merger, followed by the
Newmont-Goldcorp merger. But this trend is expected to continue at
mid-cap and junior levels in the energy and base metals' market
sector still in search of critical mass, lower G & A costs and
optionality for investors.
-- Exploration programmes continued to expand, with investment
almost doubling globally in the reporting period. Project
developments, old mines and tailings dumps are being more
aggressively researched and restarted, in particular in the energy
storage metals, i.e. cobalt, vanadium and hard rock lithium.
However, we must not lose sight of some additional globally
impacting macro-economic, socio-political, socio-environmental and
financial features that have also manifested themselves, as
follows:
-- One of the biggest headwinds last year was a combination
between rising interest rates and the global trade war. Currently,
40 per cent. of the world's trade GDP is the US and China, so a
trade war has been hugely unsettling for the demand in
commodities.
-- IMF's increasing rhetoric on demonetisation, avoidance of
another global financial crisis via cancellation of the fiat
currency system and the move towards fully electronic, internet and
blockchain based "World Money" system, replacing the US$ dollar as
the reserve unit and most likely based on the gold backed SDR
available to sovereign and elite powers only and providing
liquidity from thin air.
-- The climate change movement, driven by political control
motives and the global elites, has been elevated to become the
convenient horse to ride and the perfect platform in the
implementation of "World Taxation". Taken in isolation, climate
change seems to have no link to world money or world tax, yet every
statement by the IMF references climate change and the need to
address it globally. This could be both massively positive and
massively negative for the mining and minerals' sector, dependent
upon which angle you see it. In April 2016, UN Project Adviser
Andrew Sheng co-authored a published article "How to Finance Global
Reflation" - the statement therein "Investment in global public
goods - namely, the infrastructure needed to meet the needs of the
developing world and to mitigate climate change - could spur global
reflation. An estimated US$6 trillion in infrastructure investment
will be needed annually over the next 15 years just to address
global warming...".
While cognisant of the operating environment and macro
environmental factors mentioned above, Alexander has maintained an
unwavering focus on our core activity of seeking and/or acquiring
commercialisation opportunities for our AmmLeach(R) and
HyperLeach(R) technologies ("Leaching Technologies") to release the
embedded value in your Company.
During the year, the Company continued to add granted patents in
key mining jurisdictions to its portfolio of intellectual property,
as well as continuing with its R&D activities under various
agreements and, where appropriate, make additional patent
applications.
A HyperLeach(R) patent, which describes a method for leaching
one or more target metals from a sulphide ore and/or concentrate
was granted in the important mining country of Canada, a
cobalt-related patent in the cobalt rich country of Zambia and the
overarching AmmLeach(R) patent in Chile, the world's dominant
copper producing country.
The table below summarises those patents granted to date.
MetaLeach(R) registered patent summary
Method Country
AmmLeach(R) family patents
Ammoniacal Leaching Peru, Chile, South Africa, African Regional
Intellectual Property
Organization ("ARIPO"), Australia, Canada Mexico, USA,
Democratic
Republic of the Congo, China
Extracting Zinc from Aqueous Ammoniacal Solutions Mexico, USA
Leaching Cobalt from Oxidised Cobalt Ores ARIPO, South
Africa
Leaching of a Copper-containing Ore Australia
Leaching Zinc from a Zinc Ore Canada
Leaching Zinc Silicate Ores Turkey
Recovering Cobalt from Cobalt-Containing Ores Australia
Leaching of Copper and Molybdenum Chile
HyperLeach(R) family patents
Oxidative Leaching of Molybdenum -
Rhenium Sulfide Ores and/or Concentrates Australia, Chile,
Mongolia,
Oxidative Leaching of Sulfide Ores and/or Concentrates Germany,
Poland, Turkey, Australia, Canada, European
Patent Convention, Mongolia, USA
Note: ARIPO includes: Botswana, Namibia, Zambia and
Zimbabwe.
Financial
The Company has continued to be assiduous in keeping its
overheads to the minimum necessary, whilst maintaining required
expenditure on business development and intellectual property
protection.
The Company's cash position at 31 December 2018 was
GBP441,000.
Based on the current budget the company should have adequate
working capital through until the end of the current year. It is
anticipated that further capital will need to be raised in that
time or a corporate transaction carried out. Note 1 of the
financial statements below includes a statement by the auditor that
there exists a material uncertainty which may cast significant
doubt over the Group and Company's ability to continue as a going
concern if additional funding is not raised. A number of options
and opportunities are being reviewed.
Commercialisation activities
In June 2018, a technical consultancy, licence and royalty
agreement with Canadian company Deep South Resources Inc. ("Deep
South", DSM - TSXV) for the potential use of our Leaching
Technologies was announced, to become effective on Deep South
consummating its proposed acquisition of the two exploration
licences and one mining licence that comprise the
copper/nickel/cobalt polymetallic mineral properties at Imranli
near Sivas in the Republic of Turkey, called "Kapili Tepe"
("KT").
Pleasingly, the KT acquisition was achieved post reporting
period in May 2019 and we look forward to working together for
mutual benefit.
In Australia, unfortunately, as reported on 29 August 2018,
Accudo's plan to proceed with a detailed feasibility study on the
potential use of our Leaching Technologies under the existing
licence agreement at a specific copper project in Australia, and
which was dependent upon it obtaining acquisition financing, has
been aborted. However, Accudo remains motivated to seek other
potentially suitable opportunities. We remain hopeful that, given
falling LME copper inventories, lack of new production on the
horizon, and strong demand from the EV, energy/battery storage
sector and energy distribution infrastructure requirements, it may
be successful.
Alexander continues to work with and support Duard Capital Ltd.
for the potential introduction of commercial opportunities for its
Leaching Technologies in Zambia and the Democratic Republic of the
Congo ("DRC"). Both countries share the world renowned Copperbelt
geology and are noted mining countries with significant copper and
cobalt production growth potential. They are highly prospective for
the use of Alexander's technology for the recovery of copper and
cobalt.
In February 2018, Alexander announced a partnership agreement
with Proses Mühendislik, Danı manlık, İn aat ve Tasarım AS.
("Proses"), a mineral processing specialist consultancy based in
Turkey, covering Turkey, Iran and the rest of the Middle-East.
Under the agreement, subject to securing the necessary funding,
Proses proposes to design and construct a semi industrial scale
processing plant ("SISP") using Alexander's technology in Turkey.
In October 2018, it was announced that Proses had been
investigating and progressing plans in Turkey for the establishment
of a SISP using Alexander's AmmLeach(R) technology for processing
lower grade zinc oxide ores. Accordingly, it had entered into a
formal royalty agreement with Osmanlı Madencilik Ltd ("Osmanlı") of
Turkey.
Under the agreement with Osmanlı and subject to environmental
impact studies, permitting and Proses securing the necessary
funding, the plan would extract zinc oxide ore from the licence
area and process the ore in a SISP facility to be established on
site. Proses will also proactively seek to receive or purchase zinc
oxide ores from other miners in the region for treatment at this
plant.
Alexander would receive a gross sales revenue royalty on the
value of the SISP product produced using its technology. Subject to
the results of the SISP, Alexander would negotiate with the project
owners a technology licence agreement ("TLA"). The TLA should be on
Alexander's standard commercial terms, including a gross sales
revenue royalty on all commercial scale metal or high value-added
processing plant product.
Separately, Alexander continues to investigate commercialisation
opportunities for its Leaching Technologies to recover copper,
cobalt, zinc and other energy metal compounds in various countries.
As well as actively working on the commercialisation of our
Leaching Technologies through the various agreements in place for
brownfield and greenfield opportunities and projects, we continue
to investigate a range of potentially complementary and value
accretive corporate opportunities in the mining and minerals
processing sector.
Whilst we have not yet been successful in advancing any
opportunity to the stage for public disclosure, we remain active in
evaluating several of interest as they have arisen from time to
time and dependent on the main assessment criteria being
'shortest-path-to-value' for the Company and our shareholders.
Research and Development
Four research and development ("R&D") initiatives were
progressed in 2018
as follows.
Lithium
This is a joint venture ("JV") with Alexander's Principal
Technological Consultant, Dr. Nicholas Welham, an acknowledged
expert in lithium and hydrometallurgy. The JV is designed to
investigate the exciting potential to develop new lithium
processing intellectual property in a sector of major interest. The
JV is complementary to our existing cobalt recovery technology as
cobalt is an essential component in lithium ion batteries.
With this new initiative, the Company is involved in innovative
processing technology for four of the so-called "technology metals
of the future" - copper, cobalt, vanadium and lithium. All of them
have an essential use in energy storage units or batteries for
either electric vehicle ("EV") or Grid power storage unit
manufacture. There is evidence to suggest that Lithium-Ion
batteries also have significant growth potential for use in the
grid power electricity storage sector with first commercial
contracts now under adoption in the USA.
Despite some delays beyond the Company's control, proof of
concept work for a potential new hard rock lithium heap leaching
process continued. In December 2018, it was announced that the
preliminary stages of the work had shown promising results.
Consequently, it was agreed that a further larger scale batch of
test work was required.
The work was undertaken at a higher education establishment in
Perth, Western Australia under Dr. Welham's supervision, with all
materials being analysed at a local commercial laboratory.
The results from these runs announced post reporting period in
April 2019 showed that leaching of lithium from all four minerals
was achieved at ambient temperature and pressure. However, the
rates of dissolution of the lithium were lower than required for
the targeted heap leach. Of the minerals tested, only zinnwaldite
appears to have any promise for heap leaching using the envisaged
process. Although no further work is planned at this stage, the
Company retains a keen interest in the lithium mining and
processing sector given its importance to the revolution in
electric vehicles and transportation currently well underway.
With growing evidence regarding the operational and economic
difficulties with brine type lithium extraction methods, such as
increased capital intensiveness, extended time to production,
production volume variances from evaporation rates, the processing
of lithium from hard rock resources has become a point of focus.
Accordingly, the use of heap leaching as a possible processing
method for the low-cost extraction of lithium remains of interest
to Alexander and it will continue to seek opportunities to use its
expertise in this area.
HyperLeach(R)
For HyperLeach(R), two R&D investigations for its potential
use were progressed. One for copper and the other for
nickel-cobalt.
HyperLeach(R) - copper
HyperLeach(R) testwork on two low grade copper sulphide ore
samples showed promising potential for the application of
HyperLeach(R) to heap leaching and in-situ leaching. The
HyperLeach(R) reagent has been found to rapidly oxidise
chalcopyrite (the main copper sulphide mineral and source of the
majority of the world's mined copper production) and bornite from
low grade ore.
Unlike many proposed reagents for heap leach or in situ
leaching, the initial HyperLeach(R) solution does not appear to
react significantly with the common gangue (waste) minerals. The
selectivity to sulphides is anticipated to reduce the reagent
consumption compared to other acid-based systems. The acid
generated during HyperLeach(R) has been shown to react with the
gangue raising the pH and leading to precipitation of unwanted
elements, such as iron and aluminium, simplifying the separation
and recovery of the copper.
The HyperLeach(R) process has significant advantages for high
acid consuming ores compared to the conventional acid ferric
process. In the conventional process there is a need to continually
add acid in order to maintain the solubility of the ferric ions
which oxidise the sulphide minerals. This can readily become
uneconomic as the duration of heap or in situ leaching is measured
in months or even years. The near neutral starting pH of
HyperLeach(R) avoids the need to continually add acid to retain the
oxidant in solution. The absence of HyperLeach(R) reactivity
towards most gangue minerals reduces the extent of undesirable
reactions between the acid and gangue minerals. The only reaction
occurs when the HyperLeach(R) reagent is in contact with the
sulphide minerals, forming a microenvironment ideal for leaching.
The acid generated during the reaction can then react with the
gangue resulting in the precipitation of many impurity metals
within the system, leaving a largely purified solution containing
the metal of interest.
The increasing use of renewable energy on mine sites is also a
significant factor for HyperLeach(R) as the reagent can be
regenerated electrochemically at high efficiency. As the unit cost
of power decreases, the cost of using HyperLeach(R) will also
decrease. Further testwork is aimed at examining the economics of
the process. Alexander has been in contact with the major
Australian company which provided the samples tested to form a
potential partnership to fund development of a heap leach and/or
in-situ HyperLeach(R) process for copper ores.
HyperLeach(R) - nickel and cobalt
Work on the leaching of fresh and weathered nickel and cobalt
flotation tailings in order to produce high purity battery
feedstocks continued in the reporting period. Preliminary work was
undertaken in late 2018 to assess their amenability to
HyperLeach(R). Further work commenced in early 2019 to further
optimise the process and understand the major factors involved in
the leaching. Work on the separation and recovery of nickel and
cobalt from the solution to produce high purity metal sulphate
salts is expected to follow. Successful application of
HyperLeach(R) to such materials opens up a significant new
potential supply of both nickel and cobalt. In Western Australia,
and elsewhere, there are a number of operating mines which produce
a sulphide concentrate by flotation and a low grade tailings which
could be a readily accessible feed for a HyperLeach(R) process.
There is also potential application on ore that is presently too
low grade to warrant crushing, grinding and flotation, in either
vat or heap leaching scenarios.
A potential industry partner is being identified to aid progress
in this application through a joint venture.
Vanadium
In September 2017, Alexander announced that it had agreed a
significant new R&D JV project ("Project") to investigate the
potential recovery of vanadium from amenable ores ("Vanadium
Leaching Technology"). Applications for vanadium have expanded
dramatically over the last year as it found a new industrial use
and is the key component of large "flow-through" energy storage
components known as Redox Batteries, which are already achieving
commercial adoption for municipal size grid storage applications in
the USA.
The Project is between Alexander, Australian company Multicom
Resources Pty Ltd ("Multicom"), and John Webster Innovations
Proprietary Limited. Although some work has been done, it is still
at the preliminary stage with initial results and next steps being
evaluated. If the JV is successful, the potential use of a new
Vanadium Leaching Technology would initially be focused on
Multicom's Saint Elmo vanadium project in North Queensland,
Australia.
Shareholder voting process
To further reduce the environmental impact, we have removed
paper from the voting process for meetings in favour of a quicker
and more secure method of voting online via our registrars'
website. You will however be able to request a paper proxy if you
wish from our registrars at the appropriate time.
Outlook
At Alexander we remain unwavering in our belief, despite the
testing operational and macro environment factors mentioned
earlier, that the Company should begin to benefit from its
technological and market positioning, in particular as existing
commercial agreements gain traction over the coming year.
It remains our view that there is a clear investment trend in
physical and tradeable commodities. Most particularly, this
includes infrastructure and energy related commodities, e.g. copper
and zinc, both of which are already in supply deficit according to
the major market intelligence experts.
The demand for battery metals for the EV markets (nickel, cobalt
and lithium) and grid storage markets (vanadium), with significant
growth in targeted technology adoption rates could see major supply
deficits. Hence, the key beneficiaries should be companies that
hold such assets or the technologies to enhance them, like
Alexander. This therefore continues to offer shareholders and
potential investors strong fundamentals in the Alexander business
and in the progressive project developments we are engaged in.
Your Board has remained focused in executing its clearly defined
investment plans at all levels and we continue to leave no stone
unturned through actively reviewing complementary opportunities of
interest in the mining sector. And, we have continued to remain
cautious with regards to the deployment of the Company's financial
resources.
Finally, I would like to thank you, Alexander's valued
shareholders, for your continuing support and our employees,
directors, consultants and advisers for their commitment during
difficult times past and for the bright future we still see
ahead.
Alan M. Clegg
Non-Executive Chairman
31 May 2019
For further information, please contact:
Martin Rosser
Chief Executive
Mobile: +44 (0) 7770 865 341
Alexander Mining plc
Tel: +44 (0) 20 7078 9566
Email: mail@alexandermining.com
Website: www.alexandermining.com
Cairn Financial Advisers LLP
Sandy Jamieson/James Caithie
Tel: +44 (0) 20 7213 0880
Turner Pope Investments (TPI) Ltd.
Andy Thacker
Tel: +44 (0) 20 3621 4120
Consolidated income statement for the year ended 31 December
2018
2018 2017
GBP'000 GBP'000
---------------------------------------------- ---------- ----------
Continuing operations
Revenue - -
Gross profit - -
Administrative expenses (374) (329)
Research and development expenses (140) (101)
Operating loss (514) (430)
Finance income 1 -
Finance cost - -
Loss before taxation (513) (430)
Income tax expense - -
---------------------------------------------- ---------- ----------
Loss for the year from continuing
operations (513) (430)
Loss for the year (513) (430)
Basic and diluted loss per share
from continuing operations (0.03)p (0.03)p
All components of profit or loss for the year are attributable
to equity holders of the parent.
Consolidated statement of comprehensive income for the year
ended 31 December 2018
2018 2017
GBP'000 GBP'000
-------------------------------------- -------- --------
Loss for the year (513) (430)
Other comprehensive income - -
Total comprehensive loss for the
year attributable to equity holders
of the parent (513) (430)
--------------------------------------- -------- --------
Consolidated balance sheet as at 31 December 2018
2018 2017
GBP'000 GBP'000
---------------------------------- --------- ---------
Assets
Trade and other receivables 33 37
Cash and cash equivalents 441 995
----------------------------------- --------- ---------
Total current assets 474 1,032
----------------------------------- --------- ---------
Total assets 474 1,032
----------------------------------- --------- ---------
Equity attributable to owners of
the parent
Issued share capital 15,352 15,352
Share premium 14,044 14,044
Accumulated losses (29,323) (28,866)
----------------------------------- --------- ---------
Total equity (73) (530)
----------------------------------- --------- ---------
Liabilities
Current liabilities
Trade and other payables 401 502
Total current liabilities 401 502
----------------------------------- --------- ---------
Total liabilities 401 502
----------------------------------- --------- ---------
Total equity and liabilities 474 1,032
----------------------------------- --------- ---------
Consolidated statement of cash flows for the year ended 31
December 2018
2018 2017
GBP'000 GBP'000
---------------------------------------- -------- --------
Cash flows from operating activities
Operating loss - continuing operations (514) (430)
Decrease / (Increase) in trade
and other receivables 4 2
(Decrease) / Increase in trade
and other payables (101) (121)
Increase in provisions - -
Share option & warrant charge 56 21
Inter-company recharges - -
---------------------------------------- -------- --------
Net cash outflow from operating
activities (555) (528)
------------------------------------------ -------- --------
Cash flows from investing activities
Amounts remitted to subsidiary
companies - -
Interest received 1 -
Net cash inflow/(outflow) from
investing activities 1 -
---------------------------------------- -------- --------
Cash flows from financing activities
Proceeds from the issue of share
capital, net of issue costs - 1,264
Net cash inflow from financing
activities - 1,264
------------------------------------------ -------- --------
Net increase in cash and cash
equivalents (554) 736
Cash and cash equivalents at beginning
of year 995 259
Exchange differences - -
---------------------------------------- -------- --------
Cash and cash equivalents at end
of year 441 995
------------------------------------------ -------- --------
Consolidated statement of changes in equity for the year ended
31 December 2018
Share Share Accumulated Total equity
capital premium losses
GBP'000 GBP'000 GBP'000 GBP'000
At 1 January 2017 14,404 13,772 (28,501) (325)
---------------------------------- --------- --------- ------------ -------------
Accumulated loss for
year - - (430) (430)
Total comprehensive
loss for the year attributable
to equity holders of
the parent - - (430) (430)
--------- --------- ------------
Share option & warrant
costs - - 21 21
Costs of share issue - (100) - (100)
Shares issued including
warrant charge 948 372 44 1,364
---------------------------------- --------- --------- ------------ -------------
At 31 December 2017 15,352 14,044 (28,866) (530)
---------------------------------- --------- --------- ------------ -------------
Accumulated loss for
year - - (513) (497)
Total comprehensive
loss for the year attributable
to equity holders of
the parent - - (513) (497)
--------- --------- ------------
Share option & warrant
costs - - 56 40
At 31 December 2018 15,352 14,044 (29,323) (73)
---------------------------------- --------- --------- ------------ -------------
Notes
1. Financial statements
The financial information set out in this announcement does not
constitute statutory accounts within the meaning of Section 434 of
the Companies Act 2006 for the year ended 31 December 2018 or for
the year ended 31 December 2017, but is derived from those
accounts. The financial statements for 2018 will be delivered to
the Registrar of Companies following the Company's Annual General
Meeting. The auditor has issued an unqualified opinion in respect
of the financial statements which does not contain any statements
under the Companies Act 2006, Section 498(2) or Section 498(3). The
auditor has raised a point in relation to going concern as
follows:
"Material uncertainty related to going concern
We draw attention to Note 2(a) to the financial statements
concerning the group and company's ability to continue as a going
concern. The matters explained indicate that the group and company
will require additional funding by 31 December 2019 and that there
is no certainty the funding required will be secured in the
necessary timescale. These conditions, along with the other matters
set out in Note 2(a) indicate the existence of a material
uncertainty which may cast significant doubt over the group and
company's ability to continue as a going concern. Our opinion is
not modified in respect of this matter."
2. Summary of significant accounting policies
a) Basis of preparation
The financial statements have been prepared in accordance with
International Financial Reporting Standards ("IFRSs") in force at
the reporting date and their interpretations issued by the
International Accounting Standards Board ("IASB") as adopted for
use within the European Union.
The consolidated financial statements incorporate the financial
statements of the Company and entities controlled by the Company
(its subsidiaries) made up to 31 December each year.
Going Concern
At 31 December 2018 the Company's cash position was GBP441,000.
The cash flow forecast prepared by the directors which excludes
deferred salaries in relation to the former chairman indicates that
the Company will need to raise additional funding by the end of
2019 in order to meet the Group's operating expenses for the
12-month period from the date of signing these financial
statements. The directors are assessing several corporate
transactions and believe, having taken advice from their broker,
that they should be able to raise additional equity financing to
enable the Group to continue as a going concern.
On this basis, the directors have concluded that it is
appropriate to draw up the financial statements on the going
concern basis. However, there can be no certainty that the funding
required will be secured in the necessary timescale. These
conditions indicate the existence of a material uncertainty that
may cast significant doubt on the ability of the Company and the
Group to continue as a going concern and therefore, that it may be
unable to realise its assets and discharge its liabilities in the
normal course of business. The financial statements do not include
the adjustments that would result if the Company and Group were
unable to continue as a going concern.
b) Research and development expenditure
Research costs are recognised in the income statement as an
expense as incurred. Development costs are recognised in the income
statement as an expense as incurred unless the development project
meets specific criteria for deferral and amortisation. No
development costs have been deferred to date because there is
insufficient information at the balance sheet date to quantify the
expected future economic benefits from the proprietary leaching
technologies.
3. Dividends
The directors do not recommend the payment of a dividend (2017:
nil).
4. Post balance sheet events
On 7 May 2019 Alexander reported that it had received
notification that its MetaLeach Limited ("MetaLeach") subsidiary
has been granted a patent for a Method for Leaching Zinc Silicate
Ores in Turkey, patent number TR 2013 07721 B. The patent will
remain in force until 26 June 2033.
On 8 May 2019 Alexander reported that Deep-South Resources Inc.
had executed a Technology Licence & Consultancy Agreement with
Alexander Mining plc. For further information see
https://polaris.brighterir.com/public/alexander_mining/news/rns/story/xp4og9x
and
https://polaris.brighterir.com/public/alexander_mining/news/rns/story/xq484lw.
Annual Report
The Annual Report is expected to be posted to all shareholders
by 5 June 2019 and will be available on the Company's website at
www.alexandermining.com. Additional copies will be made available
to the public, free of charge, from the Company's registered office
at Salisbury House, London Wall, London, EC2M 5PS.
Annual General Meeting
The Company's Annual General Meeting will be held at the offices
of Druces LLP, Salisbury House, London Wall, London, EC2M 5PS at
11:00am on Friday 28 June 2019. The Notice of the AGM and the
associated explanatory notes relating to the resolutions to be
proposed at that meeting will accompany the Company's annual
report.
Disclaimers and forward looking statements
Neither the contents of the Company's website nor the contents
of any website accessible from hyperlinks on the Company's website
(or any other website) is incorporated into, or forms part of, this
announcement.
This news release contains forward looking or future-oriented
financial information, being information which is not historical
fact, including, without limitation, statements regarding potential
results of metallurgical testwork, anticipated applications for the
Company's intellectual property and discussions of future plans and
objectives. Although the Company believes that the expectations
reflected by such information are reasonable, these statements are
based on assumptions and factors concerning future events that may
prove to be inaccurate. Such statements are necessarily based upon
a number of estimates and assumptions based on information
available to the Company about itself and the business in which it
operates. Information used in developing forward-looking
information has been acquired from various sources including third
party consultants, suppliers, regulators and other sources and is
subject to numerous risks and uncertainties that could cause actual
results and future events to differ materially from those
anticipated or projected. Important factors that could cause actual
results to differ materially from the Company's expectations are
the continuing availability of capital resources to fund the
commercialisation of Alexander's technologies; continued positive
results from trials and applications of Alexander's AmmLeach(R) and
HyperLeach(R) technologies and other factors as disclosed in
Company documents filed from time to time. Management uses
forward-looking statements because it believes they provide useful
information to the shareholders with respect to proposed
transactions involving Alexander, and cautions readers that the
information may not be appropriate for other purposes and should
not be read as guarantees of future performance or results.
The Company disclaims any intention or obligation to revise or
update such statements unless required by law.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
FR SDUFMFFUSEEI
(END) Dow Jones Newswires
June 03, 2019 02:00 ET (06:00 GMT)
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