TIDMGROC
RNS Number : 4316J
GreenRoc Mining PLC
16 August 2023
GreenRoc Mining Plc / EPIC: GROC / Market: AIM / Sector:
Mining
16 August 2023
GreenRoc Mining plc
("GreenRoc" or the "Company")
INTERIM RESULTS FOR THE SIX MONTHS TO 31 MAY 2023
The Board of Directors of GreenRoc Mining Plc is pleased to
report the Company's interim results for the six months ended 31
May 2023. These incorporate the results of its subsidiary companies
Obsidian Mining Limited ("OML"), White Eagle Resources Limited
("WERL"), White Fox Resources Limited ("WFRL"), and its
newly-created Greenlandic subsidiary Greenland Graphite A/S
(together, the "Subsidiary Companies", collectively with GreenRoc,
the "Group").
Highlights
-- Mineral Resource Estimate ("MRE") update for Amitsoq announced in January 2023
o 23.05 million tonnes (Mt) at an average grade of 20.41%
Graphitic Carbon ("C(g)"), giving a total graphite content of 4.71
Mt
o Represents threefold increase compared with maiden MRE from
March 2022
-- Amitsoq graphite shown to be "very suitable" for processing
into high-purity spherical graphite - the anode material for
electric vehicle ("EV") batteries
-- Successful equity placings in December 2022 and March 2023,
raising gross proceeds of GBP0.88 million, at average price of 3.8
pence
-- December 2022 placing included "broker option" to provide
shareholders with opportunity to participate in placing for up to
GBP200,000 in aggregate on same terms
-- Information meetings with local communities in South
Greenland and meeting with Greenlandic Minister for Mineral
Resources in January 2023
-- Amitsoq Social Impact Assessment ("SIA") and Environmental
Impact Assessment ("EIA") programs initiated in November 2022 and
July 2021 respectively
-- European Raw Materials Alliance ("ERMA") declared official s
upport for Amitsoq graphite project in February 2023
-- CEO Stefan Bernstein presented as part of discussion panel at
BMI's European Gigafactory Conference in Budapest in March 2023
-- Amitsoq MoU Signed with Norwegian Construction and Mining
Group Leonhard Nielsen & Sønner A/S ("LNS") in March 2023
-- GreenRoc awarded "Greenland's Prospector and Developer of the
Year" by the Greenlandic Government at PDAC Toronto in March
2023
-- Amitsoq Preliminary Economic Assessment ("PEA") programme
initiated in May 2023. Publication of findings expected in
September 2023
Post period end highlights
-- Successful equity placing in August 2023, raising gross
proceeds of GBP0.47 million at 3.8 pence. Funds to be used to
finalise Amitsoq PEA, undertake additional graphite test work,
progress Amitsoq SIA and EIA programmes and support commercial
negotiations with potential offtake and financial partners
-- Further test work ongoing, including electrochemical testing of spheronised graphite
-- Larger scale bulk sampling test work of the Amitsoq Lower
Graphite Layer orebody targeted in 2023/2024 to constrain
processing parameters and make larger amounts of Amitsoq graphite
concentrate available for spherical graphite testing and supply
potential off-takers with sample material
GreenRoc's CEO, Stefan Bernstein, commented:
"We have taken important steps forward at GreenRoc in the first
half of 2023 with regards to the development of our flagship asset,
the Amitsoq Graphite Deposit in southern Greenland. The declaration
of a significantly upgraded Mineral Resource Estimate in January
2023 not only confirmed the high-grade nature of the Amitsoq
graphite ore but increased it to more than 20% graphite, which
marks out Amitsoq as a truly world-class project. We are well
underway with our environmental and social impact assessments,
which are important milestones towards the filing of an application
for an exploitation licence for Amitsoq, and work on our
Preliminary Economic Assessment or PEA has also commenced. The
completion of the PEA is an important step in the development of
the Amitsoq Project towards commercial production and we hope to
share the findings in September 2023.
"All in all, work at Amitsoq is progressing well and we thank
our shareholders for their ongoing support which is enabling us to
keep pace with our plans for moving Amitsoq towards production as
soon as possible."
Amitsoq Graphite Project
Key points about Amitsoq:
-- GreenRoc's primary focus at Amitsoq is on developing the
Amitsoq Island deposit, which has a total inferred, indicated and
measured JORC Resource of 23.05 million tonnes (Mt) at an average
grade of 20.41% Graphitic Carbon ("C(g)"), giving a total graphite
content of 4.71 Mt.
-- Deposits which have code-compliant resources with contained
graphite grades in excess of 20% are scarce, with the average
global grade of graphite resources being just 8.45% (according to
S&P Global).
-- Independent micronisation and spheronisation test work has
proved that Amitsoq graphite can be easily upgraded to high-grade,
anode-quality graphite, otherwise known as high purity spherical
graphite or HPSG, a key raw material in the manufacturing of
EVs.
-- In GreenRoc's test work programmes, Amitsoq spheronised
graphite has achieved higher than 99.95% purity requiring
relatively little energy and processing, and using the milder
alkaline purification method compared to the industry standard
hydrofluoric acid, which bodes well for future production costs and
sustainability commitments.
-- Significant further upside exists at Amitsoq as the Amitsoq
Island deposit is open in at least two directions with potential
for considerable further expansion via the similarly high-grade
Kalaaq Mainland Deposit, as well as a series of other high-grade
targets on GreenRoc's licence package.
-- The deposit was in small-scale production about 100 years
ago, and there remains substantial underground mine development in
place from that time, which will be of considerable benefit to
GreenRoc in the mine construction phase.
Thule Black Sands Ilmenite Project
Test work to determine the ilmenite content of the coarser grain
fraction within drill core samples from Thule Black Sands ("TBS"),
GreenRoc's ilmenite mineral sands project in North Greenland, is
near completion and is expected to be reported this autumn.
Melville Bay Iron Ore Project
Greenroc has undertaken a study, including interpretation, of
available geophysical data for the Melville Bay project and is
presently engaged in interpreting the results and the implications
for the iron ore potential of the licence areas. The Melville Bay
Iron Ore Project is also located in North Greenland, ca. 100km to
the south of TBS.
Corporate
In January 2023, it was announced that S.P. Angel Corporate
Finance LLP ("SP Angel") had been appointed as sole broker to the
Company.
A Greenlandic subsidiary, Greenland Graphite A/S, was
established in May 2023 in readiness for becoming the
licence-holding and operating company within the GreenRoc group for
the future exploitation of the Amitsoq graphite deposit.
Financial Results
The Group made a loss attributable to equity holders of the
parent for the period, after taxation, of GBP417k (May 2022:
GBP484k). GreenRoc Mining Plc was incorporated in March 2021, but
activity only commenced on 28 September 2021, when the Company
acquired Alba's Greenland mining portfolio in conjunction with its
IPO and Admission to AIM. Since then, corporate overheads,
consisting primarily of salaries and professional and listing
costs, have been expensed as incurred, while exploration
expenditure has been capitalised as an intangible asset in line
with the Group's accounting policy.
At the end of the reporting period, the Group's cash was
GBP210k, a net cash inflow of GBP86k. This included exploration
expenditure of GBP134k, GBP221k of creditor settlements (mainly
related to exploration work towards the end of 2022),
administration costs of GBP414k (including GBP230k of salaries and
other costs associated with the GreenRoc in-house technical and
geological team), and net funding of GBP831k (primarily the two
equity placings in the period).
The basic and diluted loss per share was 0.35 pence (May 2022:
loss of 0.43 pence).
This announcement contains inside information for the purposes
of the UK Market Abuse Regulation and the Directors of the Company
are responsible for the release of this announcement.
Forward Looking Statements
This announcement contains forward-looking statements relating
to expected or anticipated future events and anticipated results
that are forward-looking in nature and, as a result, are subject to
certain risks and uncertainties, such as general economic, market
and business conditions, competition for qualified staff, the
regulatory process and actions, technical issues, new legislation,
uncertainties resulting from potential delays or changes in plans,
uncertainties resulting from working in a new political
jurisdiction, uncertainties regarding the results of exploration,
uncertainties regarding the timing and granting of prospecting
rights, uncertainties regarding the Company's ability to execute
and implement future plans, and the occurrence of unexpected
events. Actual results achieved may vary from the information
provided herein as a result of numerous known and unknown risks and
uncertainties and other factors.
For further information, please contact:
GreenRoc Mining Plc
Stefan Bernstein, CEO +44 20 3950 0724
Cairn Financial Advisers LLP (Nomad)
James Caithie, Sandy Jamieson, Louise O'Driscoll +44 20 7213 0880
SP Angel (Broker)
Ewan Leggat, Charlie Bouverat +44 20 3470 0500
St Brides Partners Ltd (Financial PR & IR)
Susie Geliher / Paul Dulieu / Isabelle Morris +44 20 7236 1177
About GreenRoc
GreenRoc Mining plc is an AIM-quoted company which is developing
mining projects in Greenland in critical, high-demand and
high-value minerals.
Led by a group of highly experienced mining industry
professionals, GreenRoc has a portfolio of 100% owned projects all
of which have defined Resources:
-- Amitsoq Graphite Project , one of the highest-grade graphite
deposits in the world with a combined Measured, Indicated and
Inferred JORC Resource of 23.05 million tonnes (Mt) at an average
grade of 20.41% graphite, giving a total graphite content of 4.71
Mt;
-- Thule Black Sands Ilmenite Project ("TBS"), which has an
initial Mineral Resource of 19Mt at 43.6% Total Heavy Minerals with
an in-situ ilmenite grade of 8.9%; and
-- Melville Bay Iron Project , which has a Mineral Resource
Estimate of 67Mt at 31.4% iron and has been proven to be
processable to a high-grade, 70% concentrate with low
impurities.
UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHSED 31 MAY 2023
Unaudited Unaudited Audited
Six months ended 31 May Six months ended 31 May 12 months ended 30 Nov
2023 2022 2022
GBP'000 GBP'000 GBP'000
Revenue - - -
Cost of sales - - -
--------------------------- --------------------------- ---------------------------
Gross profit - - -
Administrative expenses (415) (483) (1,030)
Impairment - - (199)
Operating loss (415) (483) (1,229)
Finance expense (2) (1) (1)
--------------------------- --------------------------- ---------------------------
Loss for the period before
tax (417) (484) (1,230)
Taxation - - -
--------------------------- --------------------------- ---------------------------
Loss for the period from
continuing operations (417) (484) (1,230)
--------------------------- --------------------------- ---------------------------
Loss attributable to equity
holders of the parent (417) (484) (1,230)
--------------------------- --------------------------- ---------------------------
Other comprehensive income
Items that may be
subsequently reclassified
to profit or loss:
Exchange loss on (2) - -
translating foreign
operations
Total comprehensive income
attributable to equity (419) (484) (1,230)
Earnings per ordinary share
attributable to the
ordinary equity holders of
the parent
--------------------------- --------------------------- ---------------------------
Basic and diluted (pence) (0.35) (0.43) (1.10)
--------------------------- --------------------------- ---------------------------
UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AT 31 MAY 2023
Unaudited Unaudited Audited Year
31 May 2023 31 May 2022 30 Nov 2022
GBP'000 GBP'000 GBP'000
Non-current assets
Intangible fixed assets 10,285 9,036 10,151
------------- ------------- -------------
Total non-current assets 10,285 9,036 10,151
Current assets
Trade and other receivables 7 101 13
Cash and cash equivalents 210 1,805 126
Total current assets 217 1,906 139
------------- ------------- -------------
Current liabilities
Trade and other payables (36) (190) (256)
Payable to parent entity (57) (75) (65)
------------- ------------- -------------
Total current liabilities (93) (265) (321)
------------- ------------- -------------
Net current assets/(liabilities) 124 1,641 (182)
------------- ------------- -------------
Non-current liabilities
Deferred tax (1,004) (1,004) (1,004)
------------- ------------- -------------
Total non-current liabilities (1,004) (1,004) (1,004)
------------- ------------- -------------
Net assets 9,405 9,673 8,965
------------- ------------- -------------
Capital and reserves
Share capital 184 161 161
Share premium 10,851 10,033 10,033
Share-based payment reserve 271 214 252
Translation reserve (2) - -
Retained earnings (1,899) (735) (1,481)
Total equity 9,405 9,673 8,965
------------- ------------- -------------
UNAUDITED CONSOLIDATED CASH FLOW STATEMENT
FOR THE SIX MONTHSED 31 MAY 2023
Unaudited Unaudited Audited
Six months Six months 12 months
ended 31 ended 31 ended 30
May 2023 May 2022 Nov 2022
GBP'000 GBP'000 GBP'000
Cash flows from operating activities
Operating loss (415) (483) (1,229)
Adjustments for:
Share-based payment charge 19 103 141
Impairment - - 199
(Decrease)/increase in creditors (221) (292) (226)
Decrease/(increase) in debtors 6 (37) 51
------------ ------------ -----------
Net cash used in operating activities (611) (709) (1,064)
------------ ------------ -----------
Cash flows from investing activities
Capitalised exploration expenditure (134) (777) (2,091)
Net cash used in investing activities (134) (777) (2,091)
------------ ------------ -----------
Cash flows from financing activities
Proceeds from issue of shares 883 - -
Cost of issue (42) - -
Repayment of loan from parent (8) - -
Receipts of borrowings from
parent - 23 13
Finance expense (2) (1) (1)
Net cash generated from financing
activities 831 22 12
------------ ------------ -----------
Net increase/(decrease) in cash
and cash equivalents 86 (1,464) (3,143)
------------ ------------ -----------
FX on cash and cash equivalents (2) - -
Cash and cash equivalents at
beginning of period 126 3,269 3,269
------------ ------------ -----------
Cash and cash equivalents at
end of period 210 1,805 126
------------ ------------ -----------
NOTES TO THE HALF-YEARLY FINANCIAL INFORMATION
1. Basis of preparation
The Group consolidates the financial statements of the Company
and its subsidiary undertakings.
The financial information has been prepared under the historical
cost convention in accordance with UK-adopted International
Accountant Standards ("UK-adopted IAS") as they apply to the Group
for the six months ended 31 May 2023.
2. Taxation
No charge for corporation tax for the period has been made due
to the expected tax losses available.
3. Loss per share
Basic loss per share is calculated by dividing the loss
attributable to ordinary shareholders of GBP417k (May 2022: 484k;
November 2022: GBP1,230k) by the weighted average number of shares
of 118,862,168 (May 2022: 111,200,001; November 2022: 111,200,001)
in issue during the period. The diluted loss per share calculation
is identical to that used for basic loss per share as the exercise
of warrants would have the effect of reducing the loss per ordinary
share and therefore is not dilutive under the terms of Financial
Reporting Standard 22 "Earnings Per Share".
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IR GPUCWRUPWPPA
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