TIDMGLR
RNS Number : 1701A
Galileo Resources PLC
21 September 2022
21 September 2022
Galileo Resources Plc
("Galileo" or the "Company" or the "Group")
Audited Results for the year ended 31 March 2022 and Notice of
Annual General Meeting
Galileo (AIM: GLR), the exploration and development mining
company, announces its audited results for the year ended 31 March
2022.
Highlights for the period under review
-- In September 2021, the Company reported that all the
conditions precedent had been met in relation to its conditional
licence sale agreement of 9 of the Company's Kalahari Copper Belt
licenses with ASX listed Sandfire Resources Limited ("Sandfire")
which it had entered into in January 2021.
-- In December 2021, the Company announced an Asset Sale
Agreement entered into between Glenover and JSE Limited listed,
Afrimat Limited ("Afrimat"). The Asset Sale Agreement related to
the sale for ZAR 250M of certain deposits of phosphate rock located
at the Glenover Mine and mining rights to mine the Vermiculite
Deposit at the Glenover Mine.
-- In December 2021, the Company announced that Glenover had
entered into a conditional sale of shares agreement with Afrimat,
Glenover and the shareholders of Glenover under which Glenover has
the option (the "Afrimat Option") to acquire the shares in and
shareholders loans made to Glenover for ZAR300M (the "Sale of
Shares Agreement") which is expected to complete by 10 November
2022 if the option is exercised.
-- In December 2021, the Company reported that it had entered
into an Option and Joint Venture Agreement with Garbo Resource
Solutions Limited, covering the Shinganda Copper-Gold Project,
Zambia comprising Large Scale Exploration Licence No. 22990-HQ-LEL.
The agreement allows the Company the right to earn an initial 51%
interest in the Shinganda copper-gold project in central Zambia,
subject to any necessary Zambian regulatory approval, by spending
US$0.5m on exploration and evaluation over two years.
-- In December 2021, the Company announced that it had entered
into a Joint Venture Agreement ("JV Agreement") with Statunga
Investments, a private Zambian company that owns the Luansobe
Project comprising small- scale exploration licence No. 28340-
HQ-SEL. The JV Agreement provides the Company the right to earn an
initial 75% interest in a special purpose joint venture company to
be established under Zambian law to acquire the Licence, and the
technical information and other information and assets related to
the Luansobe Project by making an initial payment of US$200,000 and
a second payment of US$200,000 by 20 February 2022 and issuing
5,000,000 Galileo shares to the Vendor. All of these conditions
were met.
-- In March 2022, the Company announced that it had entered into
an agreement which assigned to the Company an option granted under
an agreement dated 21 January 2022 between BC Ventures Limited ("BC
Ventures") and Cordoba Investments Limited to acquire a 51%
interest in BC Ventures. BC Ventures is the owner of a highly
prospective lithium project in western Zimbabwe and two gold
licences close to Bulawayo through its wholly owned Zimbabwe
subsidiary Sinamatella Investments (Private) Limited. Under the
terms of the agreement the Company commits to spend US$1.5 million
of exploration expenditure within two years.
-- In March 2022, the Company received confirmation that all
conditions for Afrimat Limited to acquire the Vermiculite Mining
Right from Glenover had been met and that Glenover had elected for
the Vermiculite Mining Right Consideration to be paid in cash, of
which ZAR10M (approximately GBP0.5m) was due to the Company.
-- In June 2021, the Company announced that it had agreed a
placing of 133,666,664 new ordinary shares at a placing price of
1.5p per share to raise approximately GBP2,000,000 (before
expenses).
-- T he Group reported earnings of GBP1,542,576 (2021: earnings of GBP87,872).
-- Basic earnings of 0.15 pence (2021: earnings of 0.01 pence) per share.
-- In March 2021, the Company announced the ceding of ownership
and operation of the Star Zinc project close to Lusaka to Siege
Mining Limited, as it was proving difficult due to its close
proximity to municipality housing and industry.
-- In May 2021 the Company reported on the results of the
interpretation work on the airborne geophysical survey data over
prospecting licences PL40 and PL39 in Botswana. Several targets
were identified for drill testing and a contract was signed with a
local drilling company.
-- In June 2021, Glenover received confirmation that Department
of Water and Sanitation had approved their tailings facility design
and waste management plan, and National Nuclear Regulator has
approved its nuclear license.
-- In November 2021, the Company announced results of its
drilling campaign on the Kalahari Copper Belt licences. The Company
drilled in two of its retained licences, with most holes
intersecting the target D'kar/Ngwako Pan Fm. One hole intersected a
6.32m interval of 2-5% fine-grained disseminated pyrite at the
target horizon level which it was considered might represent a
hydrothermal mineral system lateral to a copper occurrence.
Highlights post the period under review
-- In July 2022, the Company announced that options to subscribe
for 39,000,000 new ordinary shares of the Company were granted to
the directors of the Company and key officers and employees at an
exercise price of 1.35 pence per share.
-- In August 2022, the Company announced that it had acquired
29% of BC Ventures for 50 million Galileo ordinary shares.
Notice of Annual General Meeting
Notice is hereby given that the Annual General Meeting of
Galileo will be held at Fladgate LLP, 16 Great Queen Street,
London, WC2B 5DG on 13 October 2022 at 11:00 a.m.
A copy of this announcement is available on the Company's
website www.galileoresources.com . Along with a copy of the Annual
Report and Notice of AGM, both of which are being posted to
shareholders.
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) No. 596/2014, as
it forms part of UK Domestic Law by virtue of the European Union
(Withdrawal) Act 2018. Upon the publication of this announcement,
this inside information is now considered to be in the public
domain.
You can also follow Galileo on Twitter: @GalileoResource.
For further information,
please contact: Colin Bird, Tel +44 (0) 20 7581 4477
Chairman
Beaumont Cornish Limited
- Nomad Tel +44 (0) 20 7628 3396
Roland Cornish / James Biddle
Novum Securities Limited
- Broker Tel +44 (0) 20 7399 9400
Colin Rowbury/Jon Belliss
Shard Capital Partners LLP
-Joint Broker
Damon Heath Tel +44 (0) 20 7186 9952
Chairman's report
Dear Shareholder,
The year under review has been exceptional from many points of
view and the Company now has a suite of assets, which we consider
to be above average with a number of them being individual company
makers in their own right.
Kalahari Copperbelt: Botswana
We reported during May 2021 that we have completed our
processing, interpretation and drill target selection of the
helicopter geophysical fly-over of the Kalahari licences and that a
number of the concessions have favourable results, producing the
typical signature that warrants further investigation.
We announced in September 2021 that we completed the conditional
sale of approximately 50% of our licences to Sandfire Resources
Limited ("Sandfire"), with a deferred payment of up to US$80
million should any of the projects produce certain levels of
contained copper. On completion of this agreement, Sandfire agreed
to pay Galileo US$1.5 million of cash and issue 370,477 Sandfire
ordinary shares, which at the time were worth approximately US$1.8
million. Sandfire agreed to an aggressive two-year exploration
budget of US$4 million, and these work programmes are currently
underway. Sandfire has had considerable success with its own
exploration activities and is well advanced in constructing its'
first mine in the vicinity of licences that Galileo sold to
Sandfire.
We undertook exploration on our own retained licences, and
although we did not intercept mineralisation in all cases, we
intercepted the typical lithology that hosts copper and silver
mineralisation. We intend to follow up with these results in the
4th quarter of this year.
Glenover Project: South Africa
In February 2022, we announced that we had completed the partial
sale of the Glenover assets to Afrimat Limited ("Afrimat") for ZAR
50.7 million (approximately GBP2.4 million), with the remainder of
the sale to be completed or abandoned before mid-November 2022. A
further interim payment of ZAR 10 million (approximately GBP0.5
million) was paid to the company in March 2022 for the sale of
vermiculite mining rights. Should Afrimat complete the entire
transaction, Galileo will be due another ZAR 102 million
(approximately GBP5.2 million) on completion.
Luansobe & Shinganda projects: Zambia
December 2021 was a very acquisitive month for the Company in
that we acquired the exploration rights to two major exploration
projects in Zambia namely Luansobe and Shinganda. During the post
review period, both of these projects have been subjected to desk
re-evaluation, legacy core examination and reinterpretation. I am
pleased to say at the time of writing this report both projects are
showing extremely good potential of certainly achieving small mine
status and equally the prospects for a large discovery of copper
and possibly gold in the case of Shinganda.
Lithium & Gold projects: Zimbabwe
In March 2022, we announced that we entered into a joint venture
relationship with B.C. Ventures Limited ("BC Ventures") for the
rights to acquire a 51% interest against an expenditure of US$1.5
million for lithium and gold exploration properties in Zimbabwe.
The agreement also allows for BC Ventures to sell up to 29% at a
negotiated value in exchange for Galileo ordinary shares. In August
2022, we announced that the Company acquired 29% of BC Ventures for
50 million Galileo ordinary shares.
The Zimbabwean assets are very high in potential and
wide-ranging exploration programmes have already commenced at both
sites. The lithium asset is located around the area of the old
Kamativi tin mine where the mine dumps are known to contain 0.58%
lithium oxide. The lithium oxide is hosted by pegmatites, often in
association with tin and the presence of the same prospective
geology extending from the Kamativi mine onto our licence is good
reason for optimism for a new lithium discovery. Post balance sheet
we have carried out desk research and fieldwork exploration. We
have taken a suite of samples over a number of target areas and
await the assay results.
An airborne geophysical survey has already been conducted over
the area covered by the gold asset, located in the vicinity of
Bulawayo. Interpreted results are strongly suggestive of greenstone
gold terrane and potentially base metal lithology. We intend to
generate drill targets and hope to drill during the 4th quarter of
2022.
These two exploration projects are a very exciting addition to
the Company's portfolio, with high potential and we will update the
market as the results begin to emerge.
Zimbabwe has expressed its welcome to foreign mining companies
to explore and develop and we look forward to establishing a solid
exploration capability in the country.
Kashitu Project: Zambia
The Kashitu zinc project in Zambia has been subject to a further
review, resulting in a continued commitment to add value and
hopefully bring a small initial deposit into production during
early 2023.
Star Zinc Project: Zambia
In March 2021 we announced the ceding of ownership and operation
of the Star Zinc project close to Lusaka, as it was proving
difficult due to its close proximity to municipality housing and
industry, even though we had attempted a small mining approach with
a local group. The possibility of blasting and the use of large
trucks appears to be a limitation on the project, since housing and
population density has increased further since project
initiation.
Ferber Project: Nevada USA
The Ferber project in the US, remains in good standing and we
hope to commence a limited drill programme, before the calendar
year end. This programme will essentially test the prognosis that a
large gold-copper skarn deposit may occur in the project area.
Prospects
The small cap sector of the natural resource stock markets has
been the worst I have experienced in my career and there remains
little sign of recovery. This is caused generally by the war in the
Ukraine, rampant inflation, and other global geopolitical
uncertainty.
At the time of writing all commodities have come off their price
highs, although there are already signs of recovery, suggesting
that the drop off was short lived and unlikely to be
maintained.
Many influential commentators in the commodity sector are
strongly predicting scarcity and thus strong metal prices for those
companies engaged in the electric vehicle manufacturing. Recently
there have been a number of examples of manufacturers making
arrangements and contracts with producers, thereby eliminating the
trader. This is unique and strongly suggests that both the EV and
associated industries have real concern over sustainable and stable
supply of critical metals.
Against this background we are convinced that our portfolio is
very well placed with quality projects in the right arena. The
investor "stand-off" cannot be maintained since history says that
the smaller cap explorers are the call option for tomorrow's
metals. That being so, Galileo is extremely well placed.
I would like to thank my fellow directors and management of
Galileo for their excellent efforts in what has been a unique year,
producing an enviable portfolio, whilst - like all small companies
- experiencing considerable head winds against progress.
Colin Bird
Chairman
CONSOLIDATED AUDITED FINANCIAL STATEMENTS FOR THE YEARED 31
March 2022
CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 March
2022
31 March 31 March
Figures in pound sterling 2022 2021
==================================== ================== ================
A s sets
Non- current assets
Intangible assets 3,875,570 2,114,817
In v estment in joint ventur es 2,936,125 1,979,640
L oans to joint ventur e s, associa
t es, and subsidiaries 792,259 345,684
Other financial assets 1,994,617 373,521
================== ================
9,598,571 4,813,662
================== ================
C urrent assets
Non-current assets held for sale - 3,952,786
T r ade and other receivables 119,856 1,359
Cash and cash equivalents 4,648,995 1,392,955
================== ================
4,768,851 5,347,100
================== ================
T o tal assets 14,367,421 10,160,763
===================================== ================== ================
E quity and liabilities
E quity
Share capital 31,996,730 29,705,244
Re serv es 1,223,801 837,700
Ac cumula ted loss (19,351,353) (21,134,916)
------------------------------------- ------------------ ----------------
13,869,178 9,408,028
Non-controlling interest 117,754 -
------------------ ----------------
13,986,932 9,408,028
------------------ ----------------
Liabilities
Non- current liabilities
Other financial liabilities 6 5
Deferred tax - 425,813
------------------ ----------------
6 425,819
------------------ ----------------
C urrent liabilities
T r ade and other pa yables 106,232 326,916
Taxation payable 274,250 -
------------------ ----------------
380,482 326,916
================== ================
T o tal liabilities 380,488 752,735
================== ================
T o tal equity and liabilities 14,367,421 10,160,763
===================================== ================== ================
These financial statements were approved by the directors and
authorised f or issue on 20 September 2022 and are signed on their
behalf by:
Colin Bird Joel Silberstein
C ompany number: 05679987
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEARED 31
March 2022
Figures in pound 31 March 31 March
sterling 2022 2021
--------------------- ------------------------------ ---------------- --------------
Oper ating expenses (753,321) (1,472,816)
---------------- --------------
Oper ating loss (753,321) (1,472,816)
In v estment revenue 332,904 -
Fair value adjustments 141,205 -
Loss on sale of assets (1,266,967) -
Provision for impairments (495,842) -
Gain on bargain purchase through business
combinations - 1,569,776
Profit/(loss) from equity accounted in
v estments 3,433,034 (9,088)
================ ==============
Profit/(l oss) for the y ear before taxation 1,391,013 87,872
Taxation 151,563 -
---------------- --------------
Profit/(loss) for the year 1,542,576 87,872
---------------- --------------
Other comprehensive income/(loss):
Items which may subsequently be reclassified
To profit or loss:
E x change differenc es on translating
foreign oper ations 483,319 (66,549)
================ ==============
T o ta l c omp r ehensi ve income/( lo
ss) f or the y e ar 2,025,895 21,323
================ ==============
Earnings per share in pence (basic) 0.15 0.01
All operating expenses and operating losses relate to continuing
activities.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY AS AT 31 March
2022
Figur es in
Pound S F oreign Shares
terling currency to
T o tal translation be Share based
Share Share share r eserve issued Merger r payment r T o tal r Ac cumula T o tal
capital premium capital (1) reserve eserve(2) eserve(3) eserv es ted loss equity
============== ============ ================= =================== =========== ======== ========== ================ ================= ============ ==========
Group
B alance at 1
April
2020 6,168,446 20,300,873 26,469,319 (709,946) - 1,047,821 283,292 621,167 (21,222,788) 5,867,698
------------ ----------------- ------------------- ----------- -------- ---------- ---------------- ----------------- ------------ ----------
Loss for the y
ear - - - - - - - - 87,872 87,872
Other
comprehensive
income - - - (66,549) - - - (66,549) - (66,549)
T o tal
comprehensive
loss for the
y ear - - - (66,549) - - - (66,549) 87,872 21,324
============ ================= =================== =========== ======== ========== ================ ================= ============ ==========
Issue of shar
es net
of issue
costs 354,163 2,894,249 3,248,412 - - - - - - 3,248,412
Options issued - - - - - - 270,595 270,595 - 270,595
Warrants
issued - (150,544) (150,544) - - - 150,544 150,544 - -
Warrants
exercised - 138,057 138,057 - - - (138,057) (138,057) - -
T o tal
contributions
by and
distributions
to owners of
Company
recognised
directly in
equity 354,163 2,881,762 3,235,925 - - - 283,082 283,082 - 3,519,007
B alance at 1
April
2021 6,522,609 23,182,635 29,705,244 (776,495) - 1,047,821 566,374 837,700 (21,134,916) 9,408,029
============ ================= =================== =========== ======== ========== ================ ================= ============ ==========
Profit for the
y ear - - - - - - - - 1,542,576 1,542,576
Other
comprehensive
income - - - 483,319 - - - 483,319 - 483,319
============ ================= =================== =========== ======== ========== ================ ================= ============ ==========
T o tal
comprehensive
profit for
the y ear - - - 483,319 - - - 483,319 1,542,576 2,025,895
============ ================= =================== =========== ======== ========== ================ ================= ============ ==========
Issue of shar
es net
of issue
costs 184,559 2,100,696 2,285,255 - - - - - - 2,285,255
Shares to be
issued - - - - 150,000 - - 150,000 - 150,000
Options issued - - - - - - (91,194) (91,194) 91,194 -
Options lapsed - - - - - - (149,793) (149,793) 149,793 -
Warrants
lapsed - - - - - - - - - -
Warrants
issued - (27,560) (27,560) - - - 27,560 27,560 - -
Warrants
exercised - 33,791 33,791 - - - (33,791) (33,791) - -
T o tal
contributions
by and
distributions
to owners of
Company
recognised
directly in
equity 184,559 2,106,927 2,291,486 - 150,000 - (247,218) (97,218) 240,987 2,435,255
============ ================= =================== =========== ======== ========== ================ ================= ============ ==========
B alance at 31
March
2022 6,707,168 25,289,562 31,996,730 (293,176) 150,000 1,047,821 319,156 1,223,801 (19,351,353) 13,869,178
============ ================= =================== =========== ======== ========== ================ ================= ============ ==========
(1) Foreign currency translation reserve comprises all foreign
currency differences arising from the translation of the financial
statements of foreign operations.
(2) Shares to be issued reserve comprises shares to be issued
post year end arising out a contractual obligation that existed at
year end.
(3) Merger reserve comprises the difference between the fair
value of an acquisition and the nominal value of the shares
allotted in a share exchange.
(4) Share based payment reserve comprises the fair value of an
equity-settled share based payment.
(5) On 4 March Galileo entered into a Deed of Assignment with
Cordoba and BC Ventures (the "Deed of Assignment") under which
Cordoba has assigned all its rights and obligations under the
Principal Agreement to Galileo for GBP150,000 which is being
settled by the issue of 13 741 609 new ordinary Galileo Resources
plc shares which will rank pari passu with existing Galileo
Resources plc shares.
CONSOLIDATED STATEMENT OF CASH FLOW FOR THE YEARED 31 March
2022
Figures in Pound Sterling 31 March 31 March
2022 2021
============================================= ============= ===========
Cash flows from oper ating activities
Cash generated from/(used in) oper ations (901,221) (1,186,567)
Net cash from oper ating activities (901,221) (1,186,567)
============================================= ============= ===========
Cash flows from in v esting activities
Additions to intangible assets (1,559,823) (453,724)
Dividends received from Joint Venture 238,827 -
Distributions from Joint Venture (incl subs,
JVs & Assoc) 2,417,977 -
Movement in investments (incl subs, JVs and - -
Assoc)
Loan movement - (84,239)
Purchase of financial assets (132,644) -
Proceeds on sale of non-current assets held
for sale 1,132,394 -
Net cash flows from in v esting activities 2,096,529 (537,963)
============================================= ============= ===========
Cash flows from financing activities
Net proceeds from share issues 2,060,529 2,761,000
T o tal cash movement for the y ear 3,256,041 1,036,471
Cash at the beginning of the y ear 1,392,955 356,485
============= ===========
T o tal cash at end of the y ear 4,648,995 1,392,955
============================================= ============= ===========
Statement of Directors' Responsibilities for the year ended 31
March 2022
-- The directors are required in terms of the Companies Act 2006
to maintain adequate accounting records and are responsible for the
content and integrity of the consolidated annual financial
statements and related financial information included in this
report. It is their responsibility to ensure that the consolidated
annual financial statements fairly present the state of affairs of
the Group as at the end of the financial year and the results of
its operations and cash flows for the period then ended, in
conformity with the applicable UK laws.
-- The consolidated annual financial statements are prepared in
accordance with UK adopted international accounting standards and
are based upon appropriate accounting policies consistently applied
and supported by reasonable and prudent judgments and estimates.
The directors acknowledge that they are ultimately responsible for
the system of internal financial control established by the Group
and place considerable importance on maintaining a strong control
environment. To enable the directors to meet these
responsibilities, the board sets standards for internal control
aimed at reducing the risk of error or loss in a cost-effective
manner. The standards include the proper delegation of
responsibilities within a clearly defined framework, effective
accounting procedures and adequate segregation of duties to ensure
an acceptable level of risk. These controls are monitored
throughout the Group and all employees are required to maintain the
highest ethical standards in ensuring the Group's business is
conducted in a manner that in all reasonable circumstances is above
reproach. The focus of risk management in the Group is on
identifying, assessing, managing and monitoring all known forms of
risk across the Group. While operating risk cannot be fully
eliminated, the Group endeavours to minimise it by ensuring that
appropriate infrastructure, controls, systems and ethical behavior
are applied and managed within predetermined procedures and
constraints.
-- The directors are of the opinion, based on the information
and explanations given by management that the system of internal
control provides reasonable assurance that the financial records
may be relied on for the preparation of the consolidated annual
financial statements. However, any system of internal financial
control can provide only reasonable, and not absolute, assurance
against material misstatement or loss.
-- The going concern basis has been adopted in preparing the
consolidated annual financial statements. The directors have no
reason to believe that the Group will not be a going concern in the
foreseeable future, based on forecasts and available cash
resources. These consolidated annual financial statements support
the viability of the company. the directors have reviewed the
Group's financial position at the balance sheet date and for the
period ending on the anniversary of the date of approval of these
financial statements and they are satisfied that the Group has, or
has access to, adequate resources to continue in operational
existence for the foreseeable future.
Colin Bird Chairman
Joel Silberstein Finance director
Ed Slowey Technical director
J Richard Wollenberg Non-Executive director
Christopher Molefe Non-Executive Director
NOTES TO THE CONSOLIDATED AUDITED FINANCIAL STATEMENTS
1. Basis of preparation
The consolidated annual financial statements have been prepared
in accordance with UK-adopted International Accounting Standard and
the Companies Act 2006. The consolidated annual financial
statements have been prepared on the historical cost basis, except
for certain financial instruments at fair value, and incorporate
the principal accounting policies set out below. Cost is based on
the fair values of the consideration given in exchange for assets
and they are presented in Pound Sterling. The accounting policies
applied are consistent with those of the previous period.
2. Basis of consolidation
The consolidated annual financial statements incorporate the
annual financial statements of the Company and all entities,
including special purpose entities, which are controlled by the
Company.
Control exists when the Company has the power to govern the
financial and operating policies of an entity so as to obtain
benefits from its activities.
The results of subsidiaries are included in the consolidated
annual financial statements from the effective date of acquisition
to the effective date of disposal.
Adjustments are made when necessary to the annual financial
statements of subsidiaries to bring their accounting policies in
line with those of the Group.
All intra-group transactions, balances, income and expenses are
eliminated in full on consolidation.
Non-controlling interests in the net assets of consolidated
subsidiaries are identified and recognised separately from the
Group's interest therein and are recognised within equity. Losses
of subsidiaries attributable to non-controlling interests are
allocated to the non-controlling interest even if this results in a
debit balance being recognised for non- controlling interest.
Transactions, which result in changes in ownership levels, where
the Group has control of the subsidiary both before and after the
transaction, are regarded as equity transactions and are recognised
directly in the statement of changes in equity.
The difference between the fair value of consideration paid or
received and the movement in non-controlling interest for such
transactions is recognised in equity attributable to the owners of
the parent.
Where a subsidiary is disposed of and a non-controlling
shareholding is retained, the remaining investment is measured to
fair value with the adjustment to fair value recognised in profit
or loss as part of the gain or loss on disposal of the controlling
interest.
3. Financial review
The Group reported earnings of GBP1,542,576 (2021: earnings of
GBP87,872).
4. Segmental analysis
Business unit
The Company's investments in subsidiaries and associates, that
were operational at year-end, operate in four geographical
locations being South Africa, Botswana, Zambia, Zimbabwe and USA,
and are organised into one business unit, namely Mineral Assets,
from which the Group's expenses are incurred and future revenues
are expected to be earned. This being the exploration for and
extraction of its mineral assets through direct and indirect
holdings. The reporting on these investments to the board focuses
on the use of funds towards the respective projects and the
forecasted profit earnings potential of the projects.
The Company's investment in Zambia and Zimbabwe did not
contribute to the operating profit or losses and is excluded from
the segmental analysis.
Geographical segments
An analysis of the profit/(loss) on ordinary activities before
taxation is given below:
31 March 31 March
2022 2021
Rare earths, aggrega t es and iron ore and
manganese South Africa 3,433,034 (9,088)
Copper Botswana 117,599 1,569,776
Gold USA 8,170 -
Corporate costs United Kingdom (2,167,790) (1,472,821)
---------------- --------------------
Total 1,391,013 87,877
---------------- --------------------
5. Taxation
As announced on 16 September 2021, Galileo concluded the sale of
9 of its Company's Kalahari Copper Belt Licences to Sandfire
Resources. As part of the transaction, during the previous
financial year when the transaction was still subject to certain
conditions precedent the Galileo recognised a deferred tax
liability in the amount of GBP425,813. The transaction was
completed during the period under review and the corresponding tax
charge recognised in profit or loss.
The applicable tax rate is calculated with reference to the
weighted average tax rate across the reporting jurisdictions for
the period under review. The weighted average tax rate for the year
under review was 17.79% (2021: 19.60%). No provision has been made
for 2022 tax as the Group has no taxable income. The estimated
Group tax losses available for set off against future taxable
income is GBP10,618,703 (2021: GBP6,868,214). The Group did not
recognise a deferred tax asset in respect of the losses carried
forward as the Group is not expected to generate taxable profits in
the foreseeable future.
6. Auditors' Report
The figures for the financial year ended 31 March 2022 are not
the Company's statutory accounts for that financial year but are
derived from those accounts.
The accounts for the financial year ended 31 March 2022, have
been reported on by the Company's auditors and are to be delivered
to the registrar of companies on or before the 30 September 2022.
The report of the auditors is (i) unqualified, (ii) does not give
any reference to any matters to which the auditors draw attention
by way of emphasis without qualifying their report, and (iii) does
not contain a statement under sections 498 (2) or (3) of the
Companies Act 2006, relating to the accounting records of the
company.
The comparative figures for the financial year ended 31 March
2021 are not the Company's statutory accounts for that financial
year but are derived from those accounts. Those accounts have been
reported on by the Company's auditors and delivered to the
registrar of companies. The report of the auditors was (i)
unqualified, (ii) did not give any reference to any matters to
which the auditors drew attention by way of emphasis without
qualifying their report, and (iii) did not contain a statement
under sections 498 (2) or (3) of the Companies Act 2006, relating
to the accounting records of the company.
7. Availability of the Annual Report
This information has been extracted from the Company's Audited
Annual Report for the year ended 31 March 2022, copies of which
were mailed to shareholders on 20 September 2022 and a copy will
also be available to shareholders and members of the public in hard
copy and free of charge, from the Company's London office at 1st
Floor, 7/8 Kendrick Mews, London, SW7 3HD. Alternatively, a
downloadable version will be available from 21 September 2022 from
Company's website: www.galileoresources.com .
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END
FR LBMMTMTATBJT
(END) Dow Jones Newswires
September 21, 2022 07:00 ET (11:00 GMT)
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