TIDMEUZ
RNS Number : 7175T
Europa Metals Ltd
29 March 2021
29 March 2021
Europa Metals Ltd
("Europa Metals", the "Company" or the "Group") (AIM / AltX:
EUZ)
Results for the Half-Year Ended 31 December 2020
Europa Metals, the European focused lead-zinc and silver
developer, is pleased to announce its unaudited results for the
half year ended 31 December 2020 (the "Half-Year Financial
Report").
Please see below extracts from the Half Year Financial Report,
being the:
- Chairman's and CEO's Reviews
- Review and results of operations
- 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
A copy of the full Half-Year Financial Report is available on
the Company's website at: www.europametals.com .
For further information on the Company, please visit www.europametals.com or contact:
Europa Metals Ltd
Dan Smith, Non-Executive Director and Company Secretary
(Australia)
T: +61 417 978 955
Laurence Read, CEO (UK)
T: +44 (0)20 3289 9923
Linkedin: Europa Metals ltd
Twitter: @ltdeuropa
Vox: Europametals
Strand Hanson Limited (Nominated Adviser)
Rory Murphy/Matthew Chandler
T: +44 (0)20 7409 3494
Tavistock (PR and IR)
Emily Fenton/Oliver Lamb
T: +44 (0)20 7920 3150 / EuropaMetals@Tavistock.co.uk
Turner Pope Investments (TPI) Limited (Broker)
Andy Thacker
T: +44 (0)20 3657 0050
Sasfin Capital Proprietary Limited (a member of the Sasfin
group)
Sharon Owens
T (direct): +27 11 809 7762
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulation (EU) No. 596/2014 as it forms part of
United Kingdom domestic law by virtue of the European (Withdrawal)
Act 2018.
Key Extracts from the Company's unaudited Half-Year Financial
Report are set out below :
Chairman's Review
Having assumed the role of Executive Chairman during this
reporting period, serving alongside Laurence Read as CEO, as a
Board we felt it appropriate to include comments from the executive
management for the first time in these unaudited half-year
results.
As a responsible natural resource development company, workforce
and stakeholder safety are of principal importance to us as a Board
of Directors. During the reporting period full health security
measures, based on Spanish, UK and Australian best practice were
maintained and monitored as the Coronavirus (COVID-19) pandemic
continued.
I think it is a reflection of the Europa Metals team's
professionalism and capability that not a single COVID-19 infection
was reported during the period within the Company whilst a series
of major operational and corporate milestones were delivered. We
have continued to advance our understanding of the Toral lead, zinc
and silver project as a potential future low capex, high margin
lead, zinc and silver mine located within the EU.
During 2020, a clear strategy was pursued to complete all the
requisite work for a revised (from the 2018 Scoping Study),
independent preliminary economic study to be commissioned and its
findings published. Such report, compiled by Bara Consulting and
published on schedule in November 2020, encompassed an indicated
resource for the first time, the results of a series of
metallurgical test work programmes including an initial ore sorting
analysis, geotechnical and hydrogeological studies. The report's
findings were significant with a substantial increase in ROM tonnes
to 700,000 tonnes per annum ("tpa") with an all-in cost of
US$63.56/t, US$79m upfront capex to production and project payback
in year four realising an NPV of US$156m at an 8% discount rate
with a 31.3% IRR. Importantly, the economic report identified that
the 12 year mine life "ends" in the highest zinc grades for
production consequently highlighting the expansion potential at
depth and to the east once Toral achieves future production,
thereby creating the possibility for a longer and larger mining
operation than currently outlined.
For the last four years, Europa Metals has progressed Toral as a
realisable project, with potential for robust margins in a safe
jurisdiction. The abovementioned new economic report, enables us to
seek to progress our corporate objectives to secure a pathway
forward for the Company that delivers equity value through
development, including partnerships or a substantial transaction.
In support of our corporate objectives, the Company proposed a
series of resolutions to shareholders at a general meeting held in
July 2020 in order to strengthen Europa Metals' capital structure
and governance. All such resolutions were duly passed including a
500:1 share consolidation, the implementation of more UK market
standard pre-emption rights and approval of an options package to
peg the directors' incentivisation with equity value growth.
Subsequently, Europa Metals was able to secure GBP2m (before
expenses) via a market fundraising at a premium to the six month
pre-consolidation VWAP.
At the time of writing, further drilling is underway at the
Toral project to form the basis of a Pre-Feasibility Study ("PFS")
whilst corporately we are actively involved in a number of
initiatives that we believe could potentially lead to a major value
event for all Europa Metals shareholders. Further updates will be
made as and when appropriate.
Myles Campion
Executive Chairman
CEO's Review
First of all, I would like to add to our Chairman's comments
regarding Europa Metals operations during the ongoing Coronavirus
(COVID-19) pandemic. Safety always sits at the heart of our
decision-making process and I am happy to confirm that during the
period not a single case of COVID-19 was contracted by any member
of our workforce. The diligence by our Spanish team on the ground
is to be commended in terms of both implementing and communicating
best practice protocols regarding social distancing, hygiene and
all other guidance from the relevant authorities during this global
health crisis. Due to our prioritisation of worker and stakeholder
safety, we are not currently providing any guidance to the market
on workflow timing as we do not want any metrics in place that
might lead to an inappropriate decision being made at any level of
the Company.
What is very evident though is the significant amount of
operational and development work achieved during the second half of
2020.
Following the appropriate governance and capital structure
changes being approved by Europa Metals' shareholders in July 2020,
the Company signed a product marketing agreement with Conrad
Partners, a leading Hong Kong based concentrate agent within the
industrial metals space. Further to Conrad's review of the Toral
lead, zinc and silver project's dataroom, the group has begun
actively marketing the project which contributed to the marketing
section of the new independent preliminary economic study
undertaken by Bara Consulting, the key findings of which were
announced on schedule in November 2020.
During August 2020, the Company announced a 40% increase in the
project's indicted resource at an average grade of 8.3% zinc
equivalent (including Pb credits) and 30g/t Ag; a significant
average grade above cut-off.
The Phase III metallurgical and ore sorting results were also
announced, undertaken by Wardell Armstrong International, which
showed significant grade and recoveries including the following
from hole TOD-025H: 83.9% Pb recovery to a 79.2% Pb concentrate;
87.7% Ag recovery to 512ppm Ag within Pb concentrate; and 87.7% Zn
recovery to a 60.0% Zn concentrate. The ore sorting results were
incorporated into the independent economic study and contributed to
the uplift in potential margins and scale outlined within the new
financial model.
Europa Metals also secured a EUR466,801.50 interest free loan by
way of a grant (the "Grant") from the Spanish Governmental agency,
CDTI. Such interest free loan is an innovation grant further to our
established partnership with the University of Salamanca and SPI
drilling, with the funds drawn to be allocated towards the
development of R&D technologies relating to the recording and
correction of drillhole deviation at the Toral Project. The Company
will draw the Grant monies down in up to three tranches, with the
prior agreement of the CDTI, with the initial tranche, comprising
an amount of EUR163,380, duly received by the Company. The second
and third tranches are scheduled to be drawn down over a period of
approximately 18 months subject to certain, defined, operational
milestones. In addition to being able to secure asset level
funding, the importance of partnering with such key regional
stakeholders cannot be over emphasised.
Following the CDTI grant, Europa Metals secured a new,
three-year Investigation Permit for Toral, until 15 November 2023,
from the Junta of Castilla y Leo n. The application was made
further to consultation and feedback from the Junta and the Company
will continue to work towards fulfilling all the requisite criteria
in preparation for a formal mining licence application in due
course. One of the benefits of working within the region is that,
due to its long history of mining, the processes to be completed
towards a mine development decision are clear, well informed and
well established. With increasing focus on supply chain
transparency, stakeholder engagement and environmental best
practice, we believe that the transparent regulatory structure
within Castilla y Leo n stands us in good stead against a changing
investment and commodity markets' backdrop.
As noted by our Chairman, the completion of the independent
economic study by Bara Consulting has revealed a significant up
lift in the economic potential for the project. At present, we are
engaged with a number of parties who are reviewing the full report
and the Toral project's data room, as well as progressing the Toral
project's PFS. The current drill campaign will seek to retrieve
resource, geotechnical and metallurgical data within the upper
levels of the project. Such upper levels represent the early years
for potential future production from the project and by initially
focussing within this zone we will endeavour to enhance our
understanding of how the initial payback period might be improved.
Implementing ore sorting at the upper levels of the project in the
silicious zone will be one of the possibilities analysed and I look
forward to announcing updates to the market at the appropriate
time.
Laurence Read
CEO
Review and results of operations
Europa Metals is a European focused lead-zinc and silver
developer.
Operating Results
During the half-year from 1 July 2020 to 31 December 2020, the
Group recorded a net loss after tax of AUD1,647,142 (1 July 2019 to
31 December 2019: net loss of AUD1,399,416).
Toral Lead-Zinc-Silver Project, Spain ("Toral" or the "Toral
Project")
Following the completion of the Scoping Study announced by the
Company in December 2018, workstreams have focused on additional
resource drilling, geotechnical drilling, metallurgical testwork
and environmental baseline studies.
On 14 August 2020, the Company announced an updated independent
mineral resource estimate ("MRE") at Toral. The updated MRE
represented a 40% increase in the indicated resource to 3.8 million
tonnes ("Mt") @ 8.3% zinc equivalent ("ZnEq") (including Pb
credits) and 30g/t Ag. In summary, the updated MRE revealed a:
-- 40% increase in indicated resource tonnes;
-- 38% increase in indicated contained tonnes of zinc to approximately 180,000 tonnes;
-- 36% increase in indicated contained tonnes of lead to approximately 150,000 tonnes; and
-- 32% increase in indicated contained ounces of silver to approximately 3.7 million ounces.
The MRE incorporated data obtained from:
o 113 diamond (including wedges) and 4 reverse circulation (RC)
drill holes totalling 60,915.65 metres; and
o 19 underground channels for 18.75 metres.
The MRE, effective as of 12 August 2020, comprises:
-- An indicated resource of approximately 3.8Mt @ 8.3% Zn
Equivalent (including Pb credits), 4.7% Zn, 3.9% Pb and 30g/t Ag,
including:
o 180,000 tonnes of zinc, 150,000 tonnes of lead and 3.7 million
ounces of silver.
-- An inferred resource of approximately 14Mt @ 6.5% Zn
Equivalent (including Pb credits), 4% Zn, 2.7% Pb and 23 g/t Ag,
including:
o 540,000 tonnes of zinc, 360,000 tonnes of lead and 10 million
ounces of silver.
-- A total resource of approximately 17Mt @ 6.9% Zn Equivalent
(including Pb credits), 4.1% Zn, 2.9% Pb and 24 g/t Ag,
including:
o 720,000 tonnes of zinc, 510,000 tonnes of lead and 14 million
ounces of silver.
The Board believes that the results of this update compare
favourably with the Company's previously reported MRE, announced on
29 October 2019, comprising the following tonnages and grades:
-- An indicated resource of approximately 2.7Mt @ 8.9% Zn
Equivalent (including Pb credits), 5% Zn, 4.2% Pb and 32 g/t Ag,
including:
o 130,000 tonnes of zinc, 110,000 tonnes of lead and 2.8 million
ounces of silver.
-- An inferred resource of approximately 16Mt @ 7.2% Zn
Equivalent (including Pb credits), 4.5% Zn, 2.9% Pb and 22 g/t Ag,
including:
o 690,000 tonnes of zinc, 450,000 tonnes of lead and 11 million
ounces of silver.
-- A total resource of approximately 18Mt @ 7.4% Zn Equivalent
(including Pb credits), 4.5% Zn, 3.1% Pb and 24 g/t Ag,
including:
o 830,000 tonnes of zinc, 570,000 tonnes of lead and 14 million
ounces of silver.
*Zn Eq % is the calculated Zn equivalent incorporating lead
credits; (Zn Eq (Pb)% = Zn + Pb*0.926). Zn Eq (PbAg)% is the
calculated Zn equivalent incorporating silver credits as well as
lead; (Zn Eq (PbAg)% = Zn + Pb*0.926 + Ag*0.019). Zn equivalent
calculations were based on 3-year trailing average price statistics
obtained from the London Metal Exchange and London Bullion Market
Association giving an average Zn price of US$2,680/t, Pb price of
US$2,100/t and Ag price of US$16.2/oz.
http://www.rns-pdf.londonstockexchange.com/rns/7175T_1-2021-3-27.pdf
Image 1: showing Addison Mining Services Limited's ("AMS")
resource block model for Toral as a 3D view looking north, by
resource category
Image 2 below presents a grade contour section of one of the
high-grade zones at the Toral Project. Hole TOD-023 sits within a
zone of >8% ZnEq (PbAg) and supports the premise that the main
corridor of mineralisation is continuous.
http://www.rns-pdf.londonstockexchange.com/rns/7175T_1-2021-3-27.pdf
Image 2: Grade contour map of one of the high-grade zones at the
Toral Project
Image 3 below illustrates the location of Image 2 within the
existing Toral Inferred resource block model (as reported on 10
December 2018).
http://www.rns-pdf.londonstockexchange.com/rns/7175T_1-2021-3-27.pdf
Image 3: Location of high-grade zone within the Toral Project's
Inferred resource block model
Metallurgical work programme
Objectives of the Phase III metallurgical testwork and ore
sorting analysis
During the period under review, the Company reported the results
of ongoing metallurgical testwork at Toral. Wardell Armstrong
International (WAI) conducted tests on metallurgical samples,
representing the expected ore types from Toral, in order to develop
a flowsheet for the potential economic feasible beneficiation of
Toral ores to produce marketable concentrates, as well as
establishing basic processing data for input into engineering
studies. Such work builds on the positive results from WAI's two
previous metallurgical programmes, with the design based on its
previous recommendations. Work has also been undertaken with Bara
Consulting regarding an analysis of the potential for ore sorting
at the Toral Project, in order to refine a potential future
production process for the discrete treatment of different areas of
the resource with increased metal recovery.
Three samples were submitted to WAI for testing, representing
different ore types likely to be encountered within Toral during
potential future production, with all of the ore sorting samples
firstly subjected to an ore sorting process followed by flotation
testing. The representative samples were as follows:
1. High-grade intersection from drill hole TOD-025 (TOD-025H),
which was subjected to flotation tests.
2. Low-grade fresh sample from drill hole TOD-025 (TOD-025L) for
determining the use of XRT ore sorting technology.
3. Weathered, low-grade, sample from drill hole TOD-024, also
subjected to XRT analysis.
Summary of ore sorting
Ore sorting has been identified as having the potential to
unlock value in the shallower, lower grade zones previously not
considered to be economically mineable in the 2018 Scoping Study.
Testing was therefore undertaken to investigate the potential of
pre-concentrate material from the Toral deposit by means of
sensor-based sorting. If successful, pre-concentration of the ore
could provide a number of potential benefits for the project
including:
-- Reducing the size of the requisite process plant (crushing,
grinding and dewatering circuits) whilst maintaining the same
overall throughput;
-- Enabling ore that may otherwise be sub-economic based on grade to be processed; and
-- Allowing higher mining rates without necessarily having to
increase the size of the processing plant.
Overall, the sorting results for both the TOD-024 and TOD-025L
samples were considered to be excellent, with between 45% - 50% of
the mass rejected at, for the TOD-024 sample, 98% Pb recovery, 97%
Zn recovery and 92% Ag recovery, and at, for the TOD-025L sample,
98% Pb recovery, 94% Zn recovery and 82% Ag recovery.
The increasing head assay was also pleasing with the TOD-024
sample increasing from 1.04% Pb and 1.01% Zn in the feed to 2.34%
Pb and 2.15% Zn and an approximate doubling of the grade in the
sorter product. In the TOD-025L sample the increase in grade was
more pronounced with uplifts in the Pb grade from 1.13% Pb to 4.03%
and Zn grade from 0.62% Zn in the feed to 2.06% Zn in the sorter
product.
Ore sorting process
Ore sorting by means of XRT is an established process for
sorting Pb/Zn ores by way of rejecting waste dilution from ores at
low cost prior to more conventional processing by flotation.
Sensor-based sorting was selected for WAI's investigation as it
offers a number of benefits over alternative pre-concentration
methods, such as Dense Media Separation (DMS), including the
ability to change the sorting criteria depending on the feed
material and target specific metals/minerals of interest along with
the added flexibility of not having to be continuously
operated.
Toral ore sorting analysis
Based on the minerals of interest in the feed
(galena/sphalerite) and the predominant host mineralisation
(calcite/dolomite), sorting by means of XRT sensing was selected
for investigation as part of the study as it allows detection of
the minerals of interest both on the surface and within the
particle being sorted.
Two low grade samples were taken and submitted for analysis to
WAI for sorting testwork alongside TOMRA, a leading provider of ore
sorting technology based in Germany and overseen by Bara
Consulting. The objective of the work was to identify the potential
economic benefits of processing low-grade and weathered material
through beneficiation circuits during the future mine life of Toral
alongside the central, high-grade core of the project. The samples
analysed were TOD-025L and TOD-024.
The results, presented in Table 1 below, showed lead and zinc
stage recoveries in excess of 94.5% for the TOD-024 sample and in
excess of 89.2% for the TOD-025L sample.
Overall, taking into account the metal contained within the
-10.0mm "fines" fraction, the data showed that in excess of 94% of
the overall lead and zinc in the feed could be recovered through
the ore sorting process whilst rejecting a minimum of 40% of the
original mass.
Table 1: Summary of ore sorting results from the TOD-024 and
TOD-025L samples:
TOD-024 (Sort+Float) Sorter Test Results
------------------------------------------------------------------------------------------------------------
Size Fraction Product Mass Assay Sorter Recovery Overall Recovery
(mm) (%) (%)
-------------- ---------------- --------------- ---------------- ------------------ -------------------
(kg) (%) Pb (%) Zn (%) Pb Zn Pb Zn
-------------- ---------------- ------ ------- ------- ------- -------- -------- --------- --------
-25.0+10.0 Stage 1 Product 5.21 22.76 2.34 2.15 96.43 94.52 51.08 48.23
-------------- ---------------- ------ ------- ------- ------- -------- -------- --------- --------
Stage 2 Product 2.16 9.41 0.08 0.07 1.40 1.33 0.74 0.68
-------------- ---------------- ------ ------- ------- ------- -------- -------- --------- --------
Stage 2 Waste 9.06 39.54 0.03 0.05 2.17 4.15 1.15 2.12
-------------- ---------------- ------ ------- ------- ------- -------- -------- --------- --------
-10.0 Fines 6.48 28.29 1.73 1.75 - - 47.03 48.98
-------------- ---------------- ------ ------- ------- ------- -------- -------- --------- --------
Feed - 22.90 100.00 1.04 1.01 - - 100.00 100.00
-------------- ---------------- ------ ------- ------- ------- -------- -------- --------- --------
TOD-025 (Sort+Float) Sorter Test Results
------------------------------------------------------------------------------------------------------------
Size Fraction Product Mass Assay Sorter Recovery Overall Recovery
(mm) (%) (%)
-------------- ---------------- --------------- ---------------- ------------------ -------------------
(kg) (%) Pb (%) Zn (%) Pb Zn Pb Zn
-------------- ---------------- ------ ------- ------- ------- -------- -------- --------- --------
-25.0+10.0 Stage 1 Product 3.91 14.24 4.03 2.06 96.08 89.22 50.81 46.97
-------------- ---------------- ------ ------- ------- ------- -------- -------- --------- --------
Stage 2 Product 2.73 9.96 0.13 0.18 2.24 5.52 1.19 2.90
-------------- ---------------- ------ ------- ------- ------- -------- -------- --------- --------
Stage 2 Waste 8.59 31.31 0.03 0.06 1.68 5.27 0.89 2.77
-------------- ---------------- ------ ------- ------- ------- -------- -------- --------- --------
-10.0 Fines 12.20 44.49 1.20 0.66 - - 47.11 47.36
-------------- ---------------- ------ ------- ------- ------- -------- -------- --------- --------
Feed - 27.42 100.00 1.13 0.62 - - 100.00 100.00
============== ================ ====== ======= ======= ======= ======== ======== ========= ========
Investigation Permit Renewal
On 8 June 2020, the Company announced that it had submitted an
application to the Junta of Castilla y León for a new three year
investigation permit ("Investigation Permit") in respect of the
Toral Project.
The Company was granted an initial Investigation Permit for
Toral in 2017, which was due to expire in November 2020 following
conclusion of the customary three year period. An Investigation
Permit provides a company with the right to pursue exploration
activities at a project. As such, since 2017, as permitted under
the Investigation Permit, the Company has commissioned and
conducted a significant amount of work on the Toral Project,
including, inter alia, a maiden JORC inferred resource and first
indicated resource estimate, a detailed scoping study,
hydrogeological analysis, geotechnical studies, environmental
monitoring, social engagement and initial metallurgical test
work.
On 12 November 2020, the Company announced that the
Investigation Permit had been renewed, following, inter alia, a
consultation process conducted by the relevant bodies of the Junta
of Castilla y Leo n, for a further three years until 15 November
2023.
During the period to 15 November 2023 , Europa Metals will seek
to prioritise the completion of all necessary tasks in order to
enable application to be made for a Mining Licence in respect of
the Toral Project, in pursuit of an appropriate, sustainable,
mining development project at Toral.
Economics Update
On 18 November 2020, the Company announced the results from an
independent Preliminary Economic Study (the "Study") in respect of
Toral. The Study, inter alia, updated the economics from the
previous Scoping Study undertaken by Addison Mining Services
Limited ("AMS") in late 2018 (the "2018 Scoping Study"), and
incorporated the positive findings generated from the workstreams
conducted by the Company and its consultants over the previous
12-18 months, including the results from ore-sorting undertaken by
Bara Consulting, metallurgical testwork by Wardell Armstrong
International, as well as reflecting a change in the selected
future mining method and a general improvement in metal prices
since 2018.
CDTI Loan Funding
On 19 October 2020, the Company announced that following an
extensive submission process, an interest -free loan by way of a
grant of EUR466,801.50 (the "Grant") had been awarded to the
Company by the Centre for the Development of Industrial Technology
(CDTI) for use towards research and development ("R&D") at
Toral.
The CDTI is a Public Business Entity in Spain, under the
auspices of the Ministry of Science and Innovation, which fosters
the technological development and innovation of Spanish companies.
The Grant is categorised as a partly refundable loan (with a nil
per cent. interest rate) with the funds received to be allocated
towards the development of R&D technologies relating to the
recording and correction of drillhole deviation at the Toral
Project. Application for the Grant was made further to ongoing work
by Europa Metals and the AIR Institute, linked to the Salamanca
University, and drilling contractors Sondeos y Perforaciones
Industriales de Bierzo SA ("SPI").
Europa Metals will draw the Grant monies down in up to three
tranches, with the prior agreement of the CDTI, with the initial
tranche, comprising an amount of EUR163,380, received by the
Company during the reporting period. The second and third tranches
are scheduled to be drawn down over a period of approximately 18
months subject to certain, defined, operational milestones. The
core objectives of the Innovation Programme are to retrieve and
process data from the current Toral drilling campaign in order to
develop algorithmic software for use in exploration campaigns to
correct drilling deviation. Biannual repayments of EUR21,822 begin
in 2024, running for 7 years until 2031, with a fixed interest rate
of nil per cent.
Once the funds have demonstrably been spent on appropriate
R&D exploration activity at the Toral Project by the Company,
70 per cent. of the total Grant will be repayable with the
balancing 30 per cent. then not required to be repaid.
Coronavirus (COVID-19) impact on operations
The Board is actively monitoring the impact of COVID-19 on the
group's operations on an ongoing basis.
The Company's response to the global coronavirus (COVID-19)
health event has been to safeguard all key personnel at all sites
and limit all travel, including to work at its sites, following the
advice and guidance issued by all relevant health authorities. For
the time being, site visits from overseas have been suspended and
operations have been amended to primarily reflect the uncertain
health security issues, but also to take into account the current
status of international equity and commodity markets. With a
significant amount of core samples and data having already been
retrieved, the Company took steps to conserve its existing capital
and continue with a series of key, desktop or laboratory based
workstreams.
The Company has carefully followed guidance issued by the
Spanish and UK governments and has halted all non-essential travel
and instructed the majority of its workforce to remain working
remotely at home. Nevertheless, metallurgical and flow sheet
optimisation work can continue from the samples already retrieved
and the latest drill campaign is ongoing.
There does not currently appear to be any material impact on the
Company or any significant uncertainties with respect to events or
conditions which may impact the Company unfavourably as at the
reporting date or subsequently as a result of the Coronavirus
(COVID-19) pandemic.
Competent Person's statement
The information above that relates to Exploration Results is
based on information compiled by Mr J.N. Hogg, MSc. MAIG Principal
Geologist for AMS, an independent Competent Person within the
meaning of the JORC (2012) code and qualified person under the AIM
guidance note for mining and oil & gas companies. Mr Hogg has
reviewed and verified the technical information that forms the
basis of, and has been used in the preparation of, the significant
intercepts referred to in this announcement, including all
analytical data, diamond drill hole logs, QA/QC data, density
measurements, and sampling, diamond drilling and analytical
techniques. Mr Hogg consents to the inclusion of the matters based
on the information, in the form and context in which it appears. Mr
Hogg has also reviewed and approved the technical information in
his capacity as a qualified person under the AIM Rules for
Companies.
Corporate
Board changes
On 5 August 2020, the Company announced that Mr Colin Bird had
resigned as a director of the Board. On the same day, Mr Myles
Campion was appointed Executive Chairman and Mr Laurence Read was
appointed as Chief Executive Officer.
Capital raising
On 19 August 2020, the Company announced that it had raised
GBP2,000,000 (before expenses) via the issue of, in aggregate,
15,686,274 (post-consolidation) new ordinary shares at an issue
price of 12.75 pence per share to certain existing and new
investors. The net proceeds from the fundraising are primarily
being utilised towards progressing the workstreams required for a
Pre-Feasibility Study at the Toral Project and general working
capital purposes.
Issue of options
On 24 July 2020, the Company announced that following approval
of resolutions 5 to 9 at the Company's general meeting held on 15
July 2020, the Company had granted, in aggregate, 1,980,000 options
to the Company's Executive and Non-Executive Directors (the
"Incentive Options"). The Incentive Options are exercisable at
varying premiums (25 - 75%) to 6.03 pence, being the 30-day VWAP up
to and including 23 July 2020.
On 18 December 2020, the Company announced that following
approval of resolutions 2 to 5 at the Company's Annual General
Meeting held on 30 November 2020, the Company had granted, in
aggregate, a further 1,380,000 options to the Company's Executive
and Non-Executive Directors. Such options are exercisable at 8.89
pence per share for the Executive Directors and at 12.89 pence per
share for the Non-Executive Directors, being the 10-day VWAP and a
45% premium to the 10-day VWAP, up to and including 17 December
2020, respectively.
Shareholder Meetings
On 15 July 2020, the Company held a general meeting whereby all
resolutions, including those in respect of a 500:1 consolidation of
the Company's share capital and the issue of Director incentive
options, were approved by shareholders by way of a poll.
On 30 November 2020, the Company held its Annual General Meeting
whereby all resolutions were also duly approved by shareholders by
way of a poll.
Share Consolidation
Following the abovementioned shareholder approval, on 16 July
2020 the consolidation of the Company's ordinary shares on a 500:1
basis was effected.
Events subsequent to the reporting date
On 18 January 2021, the Company announced that it had commenced
further diamond drilling at the Toral Project, which forms part of
the Company's PFS workstreams. The programme also forms part of the
Innovation Partnership with the University of Salamanca and Sondeos
y Perforaciones Industriales de Bierzo SA, which helped secure the
grant award of EUR466,801.50 to the Company from the Centre for the
Development of Industrial Technology.
On 27 January 2021, the Company announced that it had appointed
Mr Adam Habib as an adviser to the board on corporate development.
Mr Habib is working with the Company to progress its strategy to
maximise value for Europa Metals' shareholders and providing
corporate development advice and support as the Company seeks to
move to the next stage in its development.
No other matters or circumstances have arisen since the
reporting date that may significantly affect the operations of the
Company, the results of those operations, or the state of affairs
in future financial years.
Consolidated Statement of Profit or Loss and Other Comprehensive
Income
for the half-year ended 31 December 2020
6 months 6 months
to to
31 December 31 December
2020 2019
AUD AUD
---------------------------------------------------- ------------- -------------
Revenue from continuing operations
Revenue - 212
- 212
Exploration expenditure (950,854) (954,762)
Foreign exchange (loss)/gain (73,865) 38,362
Other expenses (622,423) (483,228)
Loss before income tax (1,647,142) (1,399,416)
Income tax (expense)/benefit - -
------------- -------------
Net loss after income tax (1,647,142) (1,399,416)
------------- -------------
Other comprehensive income
Items that may be reclassified subsequently
to profit or loss:
Net exchange (loss)/gain on translation of foreign
operation (285,969) 76,804
Other comprehensive (loss)/profit
for the period, net of tax (285,969) 76,804
Total comprehensive loss for the period (1,933,111) (1,322,612)
============= =============
Net (loss) for the period attributable
to shareholders of the Company: (1,647,142) (1,399,416)
------------- -------------
(1,647,142) (1,399,416)
============= =============
Total comprehensive (loss) for the
period attributable to shareholders
of the Company: (1,933,111) (1,322,612)
------------- -------------
(1,933,111) (1,322,612)
============= =============
(Loss) per share attributable to the ordinary equity holders of
the Company
Cents per Cents per
Loss per share share share
- basic (loss) per share (3.67) (4.87)
- diluted (loss) per share (3.67) (4.87)
The above Consolidated Statement of Profit or Loss and Other
Comprehensive Income should be read in conjunction with the
accompanying notes in the full Half-Year Financial Report.
Consolidated Statement of Financial Position as at 31 December
2020
31 December 30 June
2020 2020
AUD AUD
------------------------------- ------------- -------------
Current Assets
Cash and short term deposits 2,898,384 700,642
Trade and other receivables 227,489 210,866
Total Current Assets 3,125,873 911,508
------------- -------------
Non-current Assets
Plant and equipment 62,452 24,073
Other receivables 188,229 193,096
Right of use assets 29,277 39,035
Capitalised exploration 1,287,352 1,577,953
Total Non-current Assets 1,567,310 1,834,157
------------- -------------
Total Assets 4,693,183 2,745,665
============= =============
Current Liabilities
Trade and other payables 289,481 207,462
Lease liabilities 23,761 22,328
Total Current Liabilities 313,242 229,790
------------- -------------
Non-current Liabilities
Lease liabilities 4,255 16,505
Borrowings 121,708 -
Unearned income 144,362 -
Total Non-current Liabilities 270,325 16,505
------------- -------------
Total Liabilities 583,567 246,295
============= =============
NET ASSETS 4,109,616 2,499,370
============= =============
Equity
Contributed equity 45,695,893 42,489,962
Accumulated losses (44,769,082) (43,121,940)
Reserves 3,182,805 3,131,348
TOTAL EQUITY 4,109,616 2,499,370
============= =============
The above Consolidated Statement of Financial Position should be
read in conjunction with the accompanying notes in the full
Half-Year Financial Report.
Consolidated Statement of Changes in Equity
for the half-year ended 31 December 2020
Employee
Share
Issued Accumulated Incentive Option Foreign Exchange Total
Capital Losses Reserve Reserve Reserve Equity
AUD AUD AUD AUD AUD AUD
-------------------------------- ----------- ------------- ----------- ---------- ----------------- ------------
At 1 July 2019 40,572,924 (40,759,280) 491,577 2,087,837 314,445 2,707,503
----------- ------------- ----------- ---------- ----------------- ------------
(Loss) for the period - (1,399,416) - - - (1,399,416)
Other comprehensive income (net
of tax) - - - - 76,804 76,804
Total comprehensive loss (net
of tax) - (1,399,416) - - 76,804 (1,322,612)
Transaction with owners in
their
capacity as owners
Shares issued net of
transaction
costs 1,983,455 - - - - 1,983,455
Options issued to brokers (66,417) - - 66,417 - -
At 31 December 2019 42,489,962 (42,158,696) 491,577 2,154,254 391,249 3,368,346
=========== ============= =========== ========== ================= ============
At 1 July 2020 42,489,962 (43,121,940) 491,577 2,154,254 485,517 2,499,370
----------- ------------- ----------- ---------- ----------------- ------------
(Loss) for the period - (1,647,142) - - - (1,647,142)
Other comprehensive income (net
of tax) - - - - (285,969) (285,969)
Total comprehensive loss (net
of tax) - (1,647,142) - - (285,969) (1,933,111)
Transaction with owners in
their
capacity as owners
Shares issued net of
transaction
costs 3,380,570 - 162,787 - - 3,543,357
Options issued to brokers (174,639) - - 174,639 - -
At 31 December 2020 45,695,893 (44,769,082) 654,364 2,328,893 199,548 4,109,616
=========== ============= =========== ========== ================= ============
The above Consolidated Statement of Changes in Equity should be
read in conjunction with the accompanying notes in the full
Half-Year Financial Report.
Consolidated Statement of Cash Flows for the half-year ended 31
December 2020
6 months to 6 months to
31 December 31 December
2020 2019
AUD AUD
--------------------------------------------- ------------- -------------
Cash flows from operating activities
Interest received - 212
Payments to suppliers and employees (416,600) (410,400)
Payment for exploration and evaluation
costs (886,241) (1,067,242)
Net cash flows used in operating activities (1,302,841) (1,477,430)
------------- -------------
Cash flows from investing activities
Payments for plant and equipment (7,698) -
Net cash flows used in investing activities (7,698) -
------------- -------------
Cash flows from financing activities
Lease principal repayments (13,229) (28,429)
Proceeds from issue of shares 3,597,214 2,214,032
Costs of capital raising (253,101) (183,506)
Proceeds from borrowings 260,617 -
Net cash flows from financing activities 3,591,501 2,002,097
------------- -------------
Net increase / (decrease) in cash
and cash equivalents 2,280,962 524,667
Cash and cash equivalents at beginning
of period 700,642 1,052,411
Effect of foreign exchange on cash
and cash equivalents (83,220) 19,422
------------- -------------
Cash and cash equivalents at end of
the period 2,898,384 1,596,500
============= =============
The above Consolidated Statement of Cash Flows should be read in
conjunction with the accompanying notes in the full Half-Year
Financial Report.
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END
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