TIDMKAT
RNS Number : 3220L
Katoro Gold PLC
10 September 2021
10 September 2021
Katoro Gold plc ("Katoro" or "the Company")
Unaudited Interim results for the six months ended 30 June
2021
Katoro Gold plc ('Katoro' or the 'Company') (AIM: KAT), the AIM
listed gold and nickel exploration and development company, is
pleased to announce its unaudited results for the six months ended
30 June 2021. The interim results will also shortly be available on
the Company's website: https://www.katorogold.com/ .
Overview
-- Drilling results from the RAB drill programme carried out at
the Haneti project, confirmed the results from previous exploration
work done, which was the primary objective. The latest results
provided the confirmation desired, therefore s ubsequently refined
planning and budgeting of the diamond drilling programme as well as
the selection and engagement process for a suitable drilling
contractor has been submitted for review and approval.
-- Raised GBP960,000 (gross) through a placing and subscription
of 48,000,000 new ordinary shares of 1.00p each in the capital of
the Company at 2.00p per share.
-- Katoro is currently in the processes of compiling a
comprehensive funding package in accordance with the Blyvoor Joint
Venture ("the JV") that will allow the construction, commissioning
and operation of a mining and processing facility capable of
processing 500,000 tonnes of tailings material per month, at an
average Life of Mine ("LoM") gold grade of 0.29 g/t and confirmed
recovery of 51%, before incorporating recovery gains from the
latest metallurgical optimization tests.
-- Furthermore, the JV's total project resource size of
1,410,000 oz gold consist of 500,000 oz gold in the measured
category (35.5%), 368,000 oz gold in the indicated category
(26.1%), and 542,000 oz gold in the inferred category (38.4%).
-- Post period end:
o A period of limited political unrest in South Africa
temporarily delayed the funding process when some of the
short-listed parties requested additional time to re-assess the
country risk profile as a result of the unrest. However, the
Company is pleased to announce that discussions with these
potential funders have since resumed, and the joint venture
partners hope to conclude a final funding arrangement for Blyvoor
during the latter part of 2021.
This announcement contains inside information as stipulated
under the Market Abuse Regulations (EU) no. 596/2014.
****
For further information please visit www.katorogold.com or
contact:
Louis Coetzee Katoro Gold plc Executive Chairman louisc@katorogold.com
Bhavesh Patel
Andrew Thomson RFC Ambrian Ltd Nominated Adviser +44 20 3440 6800
-------------------- -------------------- ----------------------------
Nick Emerson +44 (0) 1483 413
Sam Lomanto SI Capital Ltd Broker 500
-------------------- -------------------- ----------------------------
Isabel de Salis St Brides Partners Investor & Media info@stbridespartners.co.uk
Oonagh Reidy Ltd Relations Adviser
-------------------- -------------------- ----------------------------
Chairman's Statement
Introduction
Despite the ongoing challenges around the COVID-19 pandemic, the
Company has continued to make significant progress across its
project portfolio. As Chairman I would like to thank Katoro's
Directors and our management team for their continued perseverance
and hard work, and in particular our shareholders, for their
patience during this difficult time. We are looking forward to
accelerating on all fronts, despite ongoing and varying lockdown
conditions in the second half of 2021.
Company successfully completed a maiden Rotary Air Blast Drill
("RAB") programme targeting the discovery of nickel and platinum
group metals at the Haneti Joint Venture Project in Tanzania ('
Haneti JV Project'), despite substantial challenges presented by
COVID-19 and the extreme rainy conditions. Furthermore, the Company
announced the results of a comprehensive Competent Person's Report
("CPR") on the results and findings technical and financial work
that was conducted on the Blyvoor Gold Tailings Project, South
Africa.
Haneti Nickel PGM Project
The Haneti JV Project is a large-scale Polymetallic project
covering a vast prospective area in central Tanzania, where the
principal target zone is an 80km long ultra-mafic belt with grades
from surface sampling of up to 13.6% nickel and 2.33g/t combined
Platinum Group Metals (PGM's). Katoro holds a 65% ownership
interest in Haneti with 35% held by Power Metal Resources plc
(LON:POW).
During the reporting period, Katoro completed a 50 hole, 1,965
metres, maiden RAB drill programme at Mihanza Hill and Mwaka Hill
and collected 1,965 samples. Following analysis of the assay
results, an earlier decision to progress to a diamond core drilling
programme in order to test for nickel sulphide mineralisation at
depth, was confirmed. Subsequent refined planning and budgeting of
the diamond drilling programme, as well as the selection and
engagement process for a suitable drilling contractor has been
submitted for review and approval.
Blyvoor Joint Venture Project
In early 2020 the Company entered into a strategic gold
production opportunity in South Africa, focused on the reprocessing
of an existing Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves (JORC) compliant
1.34-million-ounce gold tailings resource. Katoro entered into a
binding conditional agreement to form a 50/50 incorporated joint
venture to advance the project to near term production.
During the reporting period, Katoro and its joint venture
partners announced the results of a comprehensive CPR on the gold
resource, based on the results and findings of advanced technical
and financial work conducted on the Project.
The CPR comprised an advanced Pre-Feasibility level study, a
South African Code for Reporting Exploration Results, Mineral
Resources and Ore Reserves (SAMREC) compliant reserve and resource
statement, and a South African Mineral Asset Valuation ("SAMVAL")
report for Blyvoor TSF 1, 6 and 7 and Doornfontein TSF 1, 2 and 3
gold tailings storage facilities.
The findings of the CPR were subjected to the results of
confirmatory, optimization metallurgical test work. Following
receipt of all the outstanding metallurgical test results, the
findings of the CPR was validated, and the Company could proceed to
further engage with prospective funders to a juncture where several
parties recently submitted initial funding offers / proposals that
were within the broad funding requirements and expectations of the
Company.
Post reporting period, the Company has continued to make
significant progress on all aspects of the business. A period of
limited political unrest in South Africa temporarily delayed the
funding process when some of the short-listed parties requested
additional time to re-assess the country risk profile as a result
of the unrest. However, the Company is pleased to announce that
discussions with these potential funders have since resumed and the
joint venture partners hope to conclude a final funding arrangement
for Blyvoor during the latter part of 2021. Finalization of future
Engineering, Procurement and Construction (EPC), mining contractor
and operator appointment will follow on conclusion of the
funding.
In conclusion, I am optimistic about Katoro and its prospects
and look forward to a productive and exciting second half of FY
2021.
Louis Coetzee
Executive Chairman
Unaudited Interim Results for the six months ended 30 June
2021
Unaudited condensed consolidated interim Statement of
Comprehensive Income
For the six months ended 30 June 2021
6 months to 6 months to 12 months to
Note 30 June 30 June 31 December
2021 2020 2020
(Unaudited) (Unaudited) (Audited)
GBP GBP GBP
Revenue - - -
Cost of sales - - -
------------ ------------ -------------
Gross Profit - - -
------------ ------------ -------------
Administrative expenses (341,987) (432,928) (894,872)
Profit from disposal of subsidiary 13 - 815,691 -
Foreign exchanges gain/(loss) 69 (293) (76,889)
Share based payment transactions 7 (162,700) - (225,778)
Exploration expenditure (279,092) (26) (1,394,715)
Finance costs - (17,701) (22,303)
------------ ------------ -------------
Operating profit/loss (783,710) 364,743 (2,614,557)
------------ ------------ -------------
Other Income 13 - 815,691 43,873
Finance Income 11,919 - 9,570
------------ ------------ -------------
Profit/(loss) before Tax (771,791) 364,743 (2,561,114)
------------ ------------ -------------
Tax - - -
------------ ------------ -------------
Profit/(loss) for the period (771,791) 364,743 (2,561,114)
------------ ------------ -------------
Other comprehensive Income/(loss):
Items that may be classified subsequently to profit or
loss:
Exchange differences on translating of foreign operations (16,456) (7,789) (9,266)
Gain/loss reclassified to P&L on disposal of foreign
operation - - 121,670
------------ ------------ -------------
Total Comprehensive Income/(loss) (788,247) 356,954 (2,448,710)
Profit/(loss) for the period (771,791) 364,743 (2,561,114)
Attributable to owners of the parent (770,161) 364,743 (2,437,234)
Attributable to non-controlling interest (1,630) - (123,880)
------------ ------------ -------------
Total comprehensive Income/(loss) (788,247) 356,954 (2,692,050)
Attributable to owners of the parent (786,617) 356,954 (2,324,830)
Attributable to non-controlling interest (1,630) - (123,880)
------------ ------------ -------------
Earnings/(loss) Profit per share
Basic and diluted Earnings/(loss) per share (pence) 4 (0.21) 0.17 (0.91)
Unaudited condensed consolidated interim Statement of Financial
Position
As at 30 June 2021
6 months to 6 months to 12 months to
30 June 30 June 31 December
Note 2021 2020 2020
(Unaudited) (Unaudited) (Audited)
GBP GBP GBP
Assets
Non-current assets
Intangible assets 8 209,500 209,500 209,500
Other financial assets 13 - 405,700 -
Investments - 37,661 -
------------ ------------ -------------
209,500 652,861 209,500
------------ ------------ -------------
Current assets
Cash and cash equivalents 420,860 61,769 97,777
Other receivables 23,104 13,020 46,405
Other financial assets 13 - 1,159,200 -
Total current assets 443,964 1,233,989 144,182
------------ ------------ -------------
Total Assets 653,464 1,886,850 353,682
------------ ------------ -------------
Equity
Called up share capital 6 3,789,125 2,503,650 3,286,982
Share premium 2,823,382 2,505,634 2,472,725
Capital contribution reserve 10,528 10,528 10,528
Translation reserve (355,300) (459,039) (338,844)
Merger reserve 1,271,715 1,271,715 1,271,715
Warrant and share-based payment reserve 7 985,612 141,055 750,912
Retained deficit (8,032,868) (4,439,559) (7,262,707)
------------ ------------ -------------
Reserves attributable to owners 492,194 1,533,984 191,311
Minority interest (71,065) 33,272 (69,435)
------------ ------------ -------------
Total Equity 421,129 1,567,256 121,876
------------ ------------ -------------
Liabilities
Current liabilities
Trade and other payables 3 232,335 236,704 214,806
Other financial liabilities - 82,890 17,000
------------ ------------ -------------
Total current liabilities 232,335 319,594 231,806
------------ ------------ -------------
Total Equity and Liabilities 653,464 1,886,850 353,682
------------ ------------ -------------
Unaudited Condensed Consolidated Statement of Changes in
Equity
Share Share Warrant Merger Capital Foreign currency Retained Minority Total
Capital Premium reserve Reserve Contribution translation deficit interest
and Reserve reserve
share
based
payment
reserve
GBP GBP GBP GBP GBP GBP GBP GBP
Balance at 31 December 2020
(audited) 3,286,982 2,472,725 750,912 1,271,715 10,528 (338,844) (7,262,707) (69,435) 121,876
---------------------------- ---------- ---------- -------- ---------- ------------- ------------------ ------------ ---------- ---------------
Loss for the period - - - - - - (770,161) (1,630) (771,791)
Other comprehensive loss -
exchange differences - - - - - (16,456) - - (16,456)
---------------------------- ---------- ---------- -------- ---------- ------------- ------------------ ------------ ---------- ---------------
Proceeds of share issue of
share capital 502,143 350,657 - - - - - - 852,800
Issue of share options and
share warrants - - 234,700 - - - - - 234,700
Balance as at 30 June 2021 3,789,125 2,823,382 985,612 1,271,715 10,528 (355,300) (8,032,868) (71,065) 421,129
(unaudited)
---------------------------- ---------- ---------- -------- ---------- ------------- ------------------ ------------ ---------- ---------------
Balance at 1 January 2020
(audited) 1,795,555 2,216,729 105,467 1,271,715 10,528 (451,250) (4,804,302) 33,272 177,714
---------------------------- ---------- ---------- -------- ---------- ------------- ------------------ ------------ ---------- ---------------
Loss for the period - - - - - - 364,743 - 364,743
Other comprehensive income
- exchange differences - - - - - (7,789) - - (7,789)
---------------------------- ---------- ---------- -------- ---------- ------------- ------------------ ------------ ---------- ---------------
Proceeds of share issue of
share capital 708,095 288,905 - - - - - - 997,000
Issue of share options and
share warrants - - 35,588 - - - - - 35,588
Balance at 30 June 2020
(unaudited) 2,503,650 2,505,634 141,055 1,271,715 10,528 (459,039) (4,439,559) 33,272 1,567,256
---------------------------- ---------- ---------- -------- ---------- ------------- ------------------ ------------ ---------- ---------------
Balance at 1 January 2020
(audited) 1,795,555 2,216,729 105,467 1,271,715 10,528 (451,250) (4,804,302) 33,272 177,714
---------------------------- ---------- ---------- -------- ---------- ------------- ------------------ ------------ ---------- ---------------
Loss for the period - - - - - - (2,437,232) (123,880) (2,561,112)
Other comprehensive loss - - - - - (9,264) - - (9,264)
Issue of share capital 1,491,427 255,996 - - - - - - 1,747,423
Issue of share warrants and
options - - 645,445 - - - - - 645,445
---------------------------- ---------- ---------- -------- ---------- ------------- ------------------ ------------ ---------- ---------------
Disposal of interest in
subsidiary without losing
control - - - - 121,670 (21,173) 21,173 121,670
---------------------------- ---------- ---------- -------- ---------- ------------- ------------------ ------------ ---------- ---------------
Balance at 31 December 2020
(audited) 3,286,982 2,472,725 750,912 1,271,715 10,528 (338,844) (7,262,707) (69,435) 121,876
---------------------------- ---------- ---------- -------- ---------- ------------- ------------------ ------------ ---------- ---------------
Unaudited condensed consolidated interim statement of cash
flow
For the six months ended 30 June 2021
6 months 6 months 12 months
to to to
30 June 30 June 31 December
2021 2020 2020
(Unaudited) (Unaudited) (Audited)
GBP GBP GBP
Profit/(loss) for the period before
taxation (771,791) 364,743 (2,561,114)
Adjusted for:
Foreign exchange (gain)/ loss (69) (7,789) 99,828
Share based payment transactions 162,700 - 225,778
Directors shares issued as part
of capital placing - - 50,090
Warrants issued for facilitation - 35,588 -
fees
Profit on disposal of subsidiaries - (815,691) (43,873)
Impairments of other financial
assets 83,532 - 1,160,337
Non trade expenses not settled - - (4,200)
Operating income before working
capital changes (525,628) (423,149) (1,073,154)
Decrease/ (Increase) in trade
and other receivables 23,301 85 (33,387)
(Decrease)/ Increase in trade
and other payables 17,529 130,561 67,506
Net cash outflows from operating
activities (484,798) (292,503) (1,039,035)
Cash flows from investing activities
Cash and cash equivalents disposed
of due to sale of Subsidiary - (6,966) (6,966)
Advances of other financial assets (83,532) (753,500) (1,122,676)
Proceed received from sale of
Subsidiary - - 76,717
Advances to subsidiaries (9,597) - -
Advances to Reef Miners (6,790) - -
Proceeds from sale of subsidiary
without loss of control - - 25,000
Net cash outflow from investing
activities (99,919) (760,466) (1,027,925)
Cash flows from financing activities
Issue of shares (net of share
issue costs) 907,800 287,000 1,337,000
Proceeds from convertible loan
note - 792,800 792,800
--------------------- ------------ ------------
Net cash proceeds from financing
activities 907,800 1,079,800 2,129,800
Net increase in cash and cash
equivalents 323,083 26,831 62,839
Cash and cash equivalents at beginning
of period 97,777 34,938 34,938
--------------------- ------------ ------------
Cash and Cash equivalents at End
of Period 420,860 61,769 97,777
--------------------- ------------ ------------
Notes to the unaudited condensed consolidated interim financial
statements
For the six months ended 30 June 2021
Note 1 General information
Katoro Gold plc ("Katoro" or the "Company") is incorporated in
England & Wales as a public Ltd company. The Company's
registered office is located at 60 Gracechurch Street, London EC3V
OHR.
The principal activity of Katoro, through its subsidiaries
(together the 'Group'), is to carry out evaluation and exploration
studies within a licenced portfolio area with a view to generating
commercially viable Mineral Resources, namely gold and nickel
mines. In Haneti, the Group has one nickel mining project, which
has mineral exploration licences currently held by Eagle
Exploration Ltd. In addition, in South Africa the Group has entered
into binding conditional agreement to form a 50/50 unincorporated
joint venture pertaining to gold tailing project.
The condensed interim consolidated financial statements do not
represent statutory accounts within the meaning of section 435 of
the Companies Act 2016.
The condensed interim financial information is unaudited and has
been prepared on the basis of the accounting policies as set out in
the audited financial statements for the period ended 31 December
2020.
Accounting policies applied are consistent with those of the
previous financial period.
The seasonality or cyclicality of operations does not impact on
the interim financial statements.
Note 2 Going concern
The Company currently generates no revenue and had net assets of
GBP 421,129 as at 30 June 2021.
Following the recent successful placing and subscription of new
ordinary shares, where the Group raised in cash the amount of GBP
892,800 , the Group has adequate cash and cash equivalents
(financial resources) to ensure the Group is able to continue as a
going concern for the foreseeable future.
Furthermore, after reviewing the Group's financial projections,
the directors of the Company (the "Directors") have a reasonable
expectation that the Group will have adequate resources to continue
in operational existence for the foreseeable future.
For this reason, they adopted the going concern basis in
preparing the Group Financial Information.
The effective implementation of COVID-19 vaccination protocol
within the key areas the Group operations has led to an increase in
operational activity for the Group. As at the time of preparing
these results, the Group does not anticipate any further
significant foreseeable disruption from the COVID-19 pandemic, and
expects operational activities to normalise in the coming
months.
Post period end there has been a period of limited political
unrest in South Africa, however the impact on the groups operations
have been temporary and limited in this regard.
Note 3 Trade and other payables
30 June 2021 30 June 2020 31 Dec 2020
GBP GBP GBP
------------- ------------- ------------
Trade payables 122,897 123,424 62,892
Cash received on unlisted
placing - 45,000 -
Accruals 109,438 68,280 151,914
------------- ------------- ------------
232,335 236,704 214,806
------------- ------------- ------------
Note 4 Earnings per share
The calculation of loss per share is based on the following loss
and number of shares:
30 June 2021 30 June 2020 31 Dec 2020
GBP GBP GBP
------------- ------------- ------------
Profit/(loss) for
the period from
continuing operations (770,161) 364,743 (2,437,234)
------------- ------------- ------------
Weighted Average
basic and diluted
number of shares 373,931,716 214,713,873 268 475 455
------------- ------------- ------------
Basic and diluted
Earnings/(loss)
per share (pence) (0.21) 0.17 (0.91)
The Group presents basic and diluted EPS data on the basis that
the current structure has always been in place. Therefore the
number of Katoro shares in issue as at the period end has been used
in the calculation. Basic Earnings/loss per share is calculated by
dividing the Profit/loss for the period from continuing operations
of the Group by the weighted average number of shares in issue
during the period.
The Company had in issue warrants and options at 30 June 2021,
the inclusion of such warrants and options in the weighted average
number of shares in issue would be anti-dilutive and therefore they
have not been included for the purpose of calculating the loss per
share.
Note 5 Unaudited results
These condensed consolidated interim financial results have not
been audited or reviewed by the Group's auditors.
Note 6 Share Capital
The called-up and fully paid share capital of the Company is as
follows:
30 June 2021 30 June 2020 31 Dec 2020
GBP GBP GBP
------------- ------------- ------------
Allotted, called-up and
fully paid: 3,789,125 2,503,650 3,286,982
------------- ------------- ------------
A reconciliation of share capital is set out below:
Allotted,
called-up
and fully
Number of paid
shares GBP
------------ -----------
At 1 January 2021 328,698,305 3,286,982
Shares issued on cash placing 48,000,000 480,000
Conversion of convertible loans 1,214,285 12,143
Warrants exercised 1,000,000 10,000
At 30 June 2021 378,912,590 3,789,125
------------ -----------
Note 7 Warrant and Share based payment reserve
Warrants
The following reconciliation serves to summarise the composition
of the warrant reserve as at period end:
30 June 30 June 31 December
2021 2020 2020
GBP GBP GBP
Opening balance of warrant reserve 494,597 74,930 74,930
Issue of warrants 72,000 35,588 419,667
Exercise of warrants - - -
566,597 110,518 494,597
-------- -------- ------------
Reconciliation of the quantity of warrants in issue:
30 June 30 June 31 December
2021 2020 2020
------------ ------------ ------------
Opening balance 70,274,999 21,208,333 21,208,333
Warrants exercised (1,000,000) (4,800,000) (4,800,000)
Warrants issued 48,000,000 17,200,000 53,866,666
------------ ------------ ------------
117,274,999 33,608,333 70,274,999
------------ ------------ ------------
During the current year the following warrants have been issued
over the Company's Ordinary Shares :
48,000,000 warrants to various funders in respect of placing and
subscription of 48,000,000 ordinary shares of 1.0p each issued on
15 January 2021. Each Financing Share has an attaching warrant to
subscribe for a further new Ordinary Share at a price of 3p, with a
life to expiry of 3 years from the Financing Shares admission to
trading on AIM ('Admission'), creating 48,000,000 new warrants.
Share Options
The following reconciliation serves to summarise the composition
of the share based payment reserve as at period end:
30 June 30 June 31 December
2021 2020 2020
GBP GBP GBP
Opening balance of share based
payment reserve 256,315 30,537 30,537
Vesting of share options 162,700 - 225,778
419,015 30,537 256,315
-------- -------- ------------
Reconciliation of the quantity of Share options in issue:
30 June 30 June 31 December
2021 2020 2020
----------- ----------- ------------
Opening balance 32,244,781 14,944,783 14,944,783
Share options issued - - 17,300,000
----------- ----------- ------------
32,244,781 14,944,783 32,244,781
----------- ----------- ------------
During the current year the remaining 50% of the share options
issued in August 2020 has vested.
Note 8 Exploration and evaluation assets
Exploration and evaluation assets consist solely of separately
identifiable prospecting assets held by Kibo Nickel and its
subsidiaries.
The following reconciliation serves to summarise the composition
of intangible prospecting assets as at period end:
Reconciliation of exploration and evaluation
assets
Carrying value as at 1 January 2020 209,500
--------
Acquisition of prospecting licences -
Impairment of licences -
Carrying value as at 30 June 2020 209,500
--------
Acquisition of prospecting licences -
Impairment of licences -
Carrying value as at 31 December 2020 209,500
--------
Acquisition of prospecting licences -
--------
Impairment of licences
--------
Carrying value as at 30 June 2021 209,500
--------
Haneti comprises tenements (prospecting licences, offers and
applications) prospective for nickel, platinum-group-elements and
gold. It covers an area of approximately 5,000 sq. km in central
Tanzania and forms a near contiguous project block. The project
area straddles the Dodoma, Kondoa and Manyoni districts all within
the Dodoma (Administrative) Region. The main prospective belt of
rocks within the project, the Haneti-Itiso Ultramafic Complex
(HIUC), is centred on the small town of Haneti, located 88
kilometres north of Tanzania's capital city Dodoma. The HIUC
sporadically crops out over a strike length of 80 kilometres with
most outcrop exposure occurring 15 kilometres east of Haneti
village where artisanal mining of the semi-precious mineral
chrysoprase (nickel stained chalcedonic quartz) is being carried
out at a few localities.
Note 9 Board of Directors
There were no changes to the board of directors during the
interim period, or any other committee's composition.
Note 10 Subsequent events
Blyvoor Joint Venture Project
A period of limited political unrest in South Africa temporarily
delayed the funding process when some of the short-listed parties
requested additional time to re-assess the country risk profile as
a result of the unrest. However, the Company is pleased to announce
that discussions with these potential funders have since resumed
and the joint venture partners hope to conclude a final funding
arrangement for Blyvoor during the latter part of 2021.
Note 11 Commitments and contingencies
There are no material contingent assets or liabilities as at 30
June 2021.
Note 12 Segment report
Segmental disclosure per category
Mining Corporate Total
GBP GBP GBP
30 June 2020
Loss after tax (516) 365,259 364,743
Segmental assets 211,768 1,675,082 1,886,650
Segmental liabilities 10,051 309,543 319,594
30 June 2021
Loss after tax (369,842) (401,949) (771,791)
Segmental assets 217,519 435,945 653,464
Segmental liabilities 113,169 119,166 232,335
Segmental disclosure per geographical location
Tanzania Cyprus UK South Africa Total
GBP GBP GBP GBP GBP
30 June 2020
Loss after
tax (516) (138,339) 503,598 - 364,743
Segmental
assets 211,768 1,495 1,673,587 - 1,886,650
Segmental
liabilities 10,051 85,776 223,767 - 319,594
30 June 2021
Loss after
tax (120,438) (131,894) (401,949) (117,509) (771,791)
Segmental
assets 214,705 996 435,945 1,818 653,464
Segmental
liabilities 9,553 102,117 119,166 1,499 232,335
Notable changes from the prior interim report has been the
addition of a new geographical location in which the Group
prospecting operation has been initiated which is South Africa
where the Group has entered into binding conditional agreement to
form a 50/50 unincorporated joint venture pertaining to gold
tailing project.
Note 13 Other financial assets
30 June 30 June 31 December
2021 2020 2020
GBP GBP GBP
Other financial assets consists
of:
Lake Victoria Gold - 811,400 640,821
Impairment - - (640,821)
- 811,400 -
======= ======= ===========
On 30 June 2020, the last condition precedent related to the
disposal of Reef Miners Ltd ("Reef") as per the SPA, comprising the
Imweru gold project and the Lubando gold project in northern
Tanzania, was met resulting in the effective disposal of the
subsidiary to Lake Victoria Gold Ltd ("LVG").
The following profit on disposal of the subsidiary was
recognised in the audited annual report at 31 December 2020:
Group (GBP)
Cash and cash equivalents (336)
Trade and other payables 9,136
Net liability value disposed of at 31 December
2020 8,800
Foreign currency translation reserve reclassified
through profit or loss (121,670)
Proceeds from disposal 797,564
---------------
Profit on disposal for group 684,694
---------------
Impairment (640,821)
---------------
Net profit on disposal for group at 31 December
2020 43,873
---------------
The amount receivable from Lake Victoria Gold will be due and
payable on the following dates:
1. US$100,000 upon the satisfaction of the Condition Precedent;
2. US$100,000 upon registration of Reef in the name of LVG;
3. US$100,000 four months from the date of the SPA;
4. US$200,000 nine months from the date of the SPA; and
5. US$500,000 upon the earlier of the commissioning of the first
producing mine of LVG in the Tanzania or the date 24 months from
the date of the SPA.
As at 31 December 2020, funds of $100,000 have been received
from Lake Victoria Gold in respect of the sale of Reef Miners Ltd
("Reef")
The receivable in Lake Victoria Gold has been fully impaired at
31 December 2020 due to the significant increase in credit risk,
which is as a result of payments 1, 3 and 4 not being received as
they become due and is still outstanding at the date of this
interim report.
Blyvoor Joint Venture
On 30 January 2020, the Group entered into a Joint Venture
Agreement with Blyvoor Gold Mines (Pty) Ltd, whereby Katoro Gold
plc and Blyvoor Gold Mines (Pty) Ltd would become 50/50
participants in an unincorporated Joint Venture.
In accordance with the requirements of the Joint Venture
Agreement, the Katoro Group was to provide a ZAR15.0 million loan
(approximately GBP790,000) to the JV ('the Katoro Loan Facility'),
which will fund ongoing development work on the Project.
As at 31 December 2020, the Group has advanced funding in the
amount of GBP1,201,767 of which 100% relate to expenditure
allocated to the Joint Venture operations, carried by the Katoro
Gold plc Group.
Furthermore, the Group has continued to advance funding in the
amount of GBP97,207 of which 100% relate to expenditure allocated
to the Joint Venture operations, carried out by the Katoro Gold plc
Group.
The Katoro Loan Facility shall form part of the development
capital project financing that Katoro shall procure in accordance
with its obligations contained in the Agreement, as detailed below,
provided that:
-- the balance of the Katoro Loan Facility then outstanding
shall be subordinated to third party creditors participating in the
development capital project financing;
-- the Katoro Loan Facility will bear interest at the 12-month
London Inter Bank Offered Rate, or its successor; and
-- the Katoro Loan Facility will be repayable within 12 months
after:
- the last third-party creditor participating in the project
financing shall have been paid; or
- any earlier date on which the Parties may agree.
Note 14 Related parties
Relationships
Name Relationship
Kibo Energy plc Significant shareholder and controlling
parent
Power Metal Resources plc Common shareholding
Related party balances trade receivables/(trade 30 June 30 June 31 December
payables) 2021 2020 2020
GBP GBP GBP
Kibo Energy plc - - 23,024
Power Metal Resources plc (77,080) - (41,155)
--------- -------- ------------
(77,080) - (18,131)
========= ======== ============
Related parties of the Group comprise subsidiaries, significant
shareholders, and the Directors.
Transactions between the Company and its subsidiaries, which are
related parties, have been eliminated on consolidation.
Transactions with related parties are effected on a commercial
basis and related party debts are repayable on a commercial
basis.
The transactions during the period between the Company and its
subsidiaries included the settlement of expenditure to/from
subsidiaries, working capital funding, and settlement of the
Company's liabilities through the issue of equity in subsidiaries.
The loans to/from Group companies do not have fixed repayment terms
and are unsecured.
Note 15 Principal risks
The principal risks and uncertainties identified in the last
Annual Report of Katoro Gold plc, issued in May 2021, have not
materially changed/altered in the interim period.
Note 16 Use of Estimates and Judgements
The preparation of these condensed interim consolidated
financial statements in conformity with IFRS requires management to
make judgements, estimates and assumptions that affect the
application of accounting policies and the reported amounts of
assets, liabilities, income and expenses.
The estimates and associated assumptions are based on historical
experience and various other factors that are believed to be
reasonable under the circumstances, the results of which form the
basis of making judgements about carrying values of assets and
liabilities that are not readily apparent from other sources.
In particular, there are significant areas of estimation,
uncertainty and critical judgements in applying accounting policies
that have the most significant effect on the amounts recognised in
the financial statements.
-- Valuation of share options and warrants;
-- Credit loss allowance for other financial assets; and
-- Valuation of mining licence in Kibo Nickel Ltd.
Note 17 Financial instruments - Fair value and Risk Management
The carrying amount of all financial assets and liabilities
approximates the fair value. Directors consider the carrying value
of financial instruments of a short-term nature, that mature in 12
months or less, to approximate the fair value of such assets or
liability classes.
The carrying values of longer-term assets are considered to
approximate their fair value as these instruments bear interest at
interest rates appropriate to the risk profile of the asset or
liability class.
The Group does carry any unlisted financial instruments measured
in the statement of financial position at fair value at 30 June
2021.
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END
IR UKAVRABUKRAR
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September 10, 2021 02:00 ET (06:00 GMT)
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