TIDMKRS
RNS Number : 9220C
Keras Resources PLC
24 June 2021
24 June 2021
Keras Resources plc ('Keras' or the 'Company')
Interim Results
Keras Resources plc (AIM: KRS) announces its interim results for
the six months ended 31 March 2021.
Highlights
Utah - Diamond Creek Phosphate Mine ("Diamond Creek") - one of
the highest grade organic phosphate mines in the US, a fully
integrated mine to market asset
-- Diamond Creek milling plant currently being commissioned will
produce premium organic phosphate products for sale into the North
American organic fertiliser market
-- Milling plant enables in-house production which will reduce operating costs
-- 2020 mining season completed during October 2020 exceeding
management's targets for stockpiling of feed material for the new
milling plant
-- 2021 mining season to begin during July 2021
-- Marketing campaign will now be expanded to take into account
additional sized products and increased capacity from the new
processing plant - sales targets remain achievable and further
guidance to be provided on 2021/2 schedule
-- Granulator plant being shipped to the Spanish Fork processing
site will further bolster our in-house beneficiation capacity and
product range to include sized granulated organic fertiliser
products
-- 51% controlling interest secured in Diamond Creek with
payment of the final tranche of the agreed US$2.5m loan to Falcon
Isle Resources in December 2020
Togo - Nay éga Manganese Project, production ready on receipt of
the exploitation permit
-- Appointment of Mr Blaise Gozan as Country Manager who brings
a range of international project management experience to bolster
Keras's in-country presence
-- Continuing to engage with Togolese authorities regarding the
permitting of the Nayéga manganese project
Financial
-- Successfully raised GBP550,000 and GBP1,000,000 (before
expenses) in December 2020 and January 2021 respectively through
new and existing investors - both placings were subscribed to and
supported by the Directors
Russell Lamming, Keras Resources CEO commented, "Considerable
progress has been made at our integrated Diamond Creek phosphate
operation during the period. With the new milling plant constructed
and commissioning underway we are now in a position to ramp up the
marketing campaign for our premium organic phosphate products for
sale into the North American fertiliser market. Having our own
plant allows us to increase the amount of saleable product due to
increased plant capacity and better control on the product split.
This will be further accentuated with the construction of a
downstream granulator plant which has been delayed due to the
ongoing worldwide shipping container imbalance.
"We have one of the highest-grade organic phosphate mines in the
US producing six different fully certified organic products. Our
job now, in addition to mining and processing, is to create and
cultivate our place in the burgeoning US organic phosphate industry
and build our market share turning our initial customers into
long-term sales partners. We can adapt our premium, higher-grade
phosphate resources to deliver customised products for the specific
needs of local soil, climate, and crops with the ultimate aim of
generating higher crop yields for our customers.
"As noted, we are making significant in-roads in this respect,
with 21 customers already on our books, however unlike selling
direct into an established bulk commodity marketplace, building
market share in the organic phosphate/fertiliser arena will take
time. That said with our premium product already gaining traction
we remain confident that this will be achieved.
"In Togo, we are delighted to welcome Blaise Gozan as Togo
Country Manager. Blaise joins from Rio Tinto and will play a
pivotal role in the progression of our manganese project in the
country. As previously noted, we look forward to updating
shareholders on the progress of the Exploitation Permit approval
process.
"Finally, despite the many challenges experienced during the
period, due to the ongoing Covid pandemic, travel restrictions and
the knock-on effects this has had, when I look at our portfolio of
assets, I remain more excited than ever for the future of Keras and
would like to thank the team for their commitment and dedicated
work, and our shareholders for their continued support."
The information contained within this Announcement is deemed by
the Company to constitute inside information as stipulated under
Article 7 of the Market Abuse Regulation (EU) No. 596/2014 (as
amended) as it forms part of the domestic law of the United Kingdom
by virtue of the European Union (Withdrawal) Act 2018 (as amended).
Upon the publication of this Announcement via the Regulatory
Information Service, this inside information is now considered to
be in the public domain.
For further information please visit www.kerasplc.com , follow
us on Twitter @kerasplc or contact the following:
Russell Lamming Keras Resources plc annabel @kerasplc.com
Annabel Redford
Nominated Adviser & Joint SP Angel Corporate Finance
Broker LLP
Ewan Leggat / Charlie Bouverat +44 (0) 20 3470 0470
Joint Broker Shard Capital Partners
Damon Heath / Erik Woolgar LLP +44 (0) 207 186 9900
CHAIRMAN'S REVIEW
FOR THE SIX MONTHSED 31 MARCH 2021
I am pleased to report on our activities over the past six
months. The team in Utah has worked very hard on the installation
of the milling plant for the Diamond Creek mine. This had its
challenges but it is great to see the plant being commissioned. We
now have the in-house capacity to produce a range of high quality
products that we can tailor for customers and will now process the
remainder of the run-of-mine ore from our 2020 mining season. The
plant will also reduce our operating costs as no third-party
tolling will be required going forward. Work will now focus on
ensuring full road access and maintenance is complete so that we
can commence our 2021 mining schedule. Production from our mining
season is expected to commence in July and will run through to
October.
Management has also continued to engage with the Togolese
Authorities on the final permitting for the Nay é ga manganese
project in Togo and we are very pleased to welcome Blaise Gozan,
previously employed by Rio Tinto in Canada, as Country Manager who
further bolsters our presence and expertise in country and will
continue to progress discussions on our behalf.
Diamond Creek Phosphate Mine (Diamond Creek) - Utah, US
Diamond Creek is a fully permitted, high grade organic phosphate
mine and Keras now holds a 51% controlling interest having paid the
final tranche of a US$2.5m loan to Falcon Isle Resources, the owner
of the Diamond Creek mine, at the end of December 2020. Work
throughout the period at Diamond Creek focussed on the installation
of the milling plant at Spanish Fork, Utah, which is being
commissioned during June 2021, and provides the in-house capacity
to beneficiate products on site and sell a range of premium organic
phosphates directly into the high demand US fertiliser markets.
This capacity will be further enhanced once the granulator plant is
brought online. Delivery had been delayed due to shipping container
constraints but this is now en route to site and will be
commissioned later this year . The 2020 mining campaign - when we
can carry out our physical mining activities and produce our target
run-of-mine tonnages for the year - was completed in October 2020
with a total of 7,620 ore tons extracted. As previously announced,
we plan to mine 10,000 tons during the 2021 mining season
commencing during July 2021 - to ensure that sufficient material is
available for planned sales, while maintaining the phased increase
to the Year 5 target of 48,000 tons of commercial production.
Sales from the 2020 mining campaign up to 31 March 2021 were
1,297 tons, and the year-to-date total sales are 2,483 tons, at an
average sales price of $267 per ton, representing approximately 50%
of forecast sales to 31 December 2021. To date we have sold six
different products in both 1 ton and 50lb bags to 21 different
customers with several repeat orders, all produced through toll
treating agreements. The majority of the orders have been for
testwork to benchmark our products against their current producers
and with the recent commissioning of our milling plant in Spanish
Fork we can now not only guarantee high grade products in North
America but can also guarantee tonnages.
Falcon Isle Resources only became a Keras subsidiary on 31
December 2020, as such only the Q1 2021 sales (241 tons) are
reported as Revenue in the Income Statement.
With the milling plant now in production, sales of our #100 and
#350 mesh product will be our key focus as we increase our
production and are now able to deliver products on demand. We
expect our granulated products to be available for sale in the
first quarter of 2022 to meet the new season's demand. Further
improvements to the plant are envisaged in order to widen our
product range, and the Company has ample funds in hand to finance
its 51% share of the cost.
Nay é ga Manganese Project - Togo
Management remains in close communication with the Togolese
Ministry of Mines & Energy on the Exploitation Permit for the
Nay é ga Manganese Project and whilst this remains pending, we are
very pleased to announce the appointment of Blaise Gozan as Togo
Country Manager for Keras Resources Plc. Blaise is a Togolese
national, and he joins the Company from Rio Tinto in Canada
bringing a wealth of experience in mining and project management to
this role. We look forward to updating shareholders on the
Exploitation Permit when we have additional information to
share.
Financial Review
The current financial period for Keras has been extended to 15
months and will end on 31 December 2021, enabling the accounts of
all subsidiaries to terminate on the same date. As a result, Keras
will publish a second interim statement for the six months ending
30 September 2021.
The loss for the six months to 31 March 2021 was GBP506,000
compared with GBP809,000 for the comparable period in 2020. As
explained above there was no material revenue in the period, but
increasing sales are expected to be reflected in the next interim
statement to 30 September 2021.
Management was very pleased to complete two placings during the
period through to the end of March 2021. These funds have in part
been utilised to fund Falcon Isle Resources working capital
requirements, and to finance our 51% of the plant expansion in
Utah. In addition, they have allowed us to bolster our management
team and to provide additional working capital. Our Directors all
supported these placings, and we welcomed a number of new holders
to our register.
Focus on Sustainability
We are aware of our responsibility as an employer and a mining
company and we are committed to upholding best practice across our
business. We care about all our stakeholders and are focused on
looking to create value and benefits for all whilst seeking to
manage and mitigate the potential impacts that our operations may
have. Our assets are diverse in commodity and location but have
important similarities - mining essential resources that can
contribute to a more sustainable future, running simple operations
with minimal processing requirements and looking to maintain a low
carbon footprint. We are focused on meeting our commitments across
the ESG space and will continue to be proactive in this area as we
look to develop and sustain a positive legacy.
Looking Forward
There was a range of challenges experienced during the period,
notably the ongoing travel and quarantine restrictions due to the
Covid pandemic which limited interactions between the business
units and stopped key consultants and original equipment
manufacturers from travelling and the knock-on effects resulting in
the global imbalance of shipping containers, but we look forward to
the coming months. Mining will be underway in Utah soon and we will
continue to process and sell premium organic phosphate from Diamond
Creek whilst we also pursue the Exploitation Permit in Togo. Whilst
securing the final grant has continued to take time, we remain
confident in the process and continue to work hard to look to
unlock this.
Finally, I would like to take this opportunity to thank the rest
of the board and management for their ongoing hard work and
shareholders for their continuing support.
Brian Moritz
Chairman
23 June 2021
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHSED 31 MARCH 2021
31-Mar-21 31-Mar-20 30-Sep-20
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
Continuing operations
Revenue 31 - -
Cost of production (74) - -
Gross loss (43) - -
Administrative and exploration
expenses (517) (810) (1,235)
Loss from operating activities (560) (810) (1,235)
Finance income - 1 -
Finance
costs - - (3)
Net finance costs - 1 (3)
Share of net loss of associate
accounted for using the
equity method - (4)
Loss before taxation (560) (809) (1,242)
Taxation - - -
------------- ------------- ------------
Loss for the period (560) (809) (1,242)
------------- ------------- ------------
Other comprehensive income - items that
may be subsequently reclassified to profit
or loss
Exchange translation on foreign operations (47) (3) (15)
Change in fair value of available for - - -
sale financial assets
Items that will not be reclassified to
profit or loss
Change in fair value of equity investments
at fair value through other comprehensive - - -
income
------------- ------------- ------------
Total comprehensive (loss) for
the period (607) (812) (1,257)
============= ============= ============
(Loss)/profit attributable
to:
Owners of the Company (497) (753) (1,181)
Non-controlling interests (63) (56) (61)
------------- ------------- ------------
(Loss)/profit for the period (560) (809) (1,242)
============= ============= ============
Total comprehensive income/(loss)
attributable to:
Owners of the Company (556) (756) (1,194)
Non-controlling interests (51) (56) (63)
------------- ------------- ------------
Total comprehensive loss
for the period (607) (812) (1,257)
============= ============= ============
Earnings per share - continuing operations
Basic and diluted (loss)/earnings
per share (pence) (0.017) (0.029) (0.040)
============= ============= ============
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31
MARCH 2021
31-Mar-21 31-Mar-20 30-Sep-20
(unaudited) (unaudited) (audited)
Notes GBP'000 GBP'000 GBP'000
Assets
Non-current assets
Intangible assets 7 3,637 1,066 1,069
Property, plant and equipment 8 493 274 263
Investments accounted for
using the equity method 9 - - 1,622
4,130 1,340 2,954
------------- ------------- -----------
Current assets
Inventory 10 135 - -
Other investments 11 - - -
Trade and other receivables 12 391 36 83
Cash and cash equivalents 886 87 438
------------- ------------- -----------
1,412 123 521
------------- ------------- -----------
Total assets 5,542 1,463 3,475
============= ============= ===========
Equity
Equity attributable to owners of
the Company
Share capital 13 629 279 487
Share premium 13 4,027 419 2,637
Other reserves 68 - 16
Retained deficit (590) 428 8
------------- ------------- -----------
4,134 1,126 3,148
Non-controlling interests 934 (132) (140)
------------- ------------- -----------
Total equity 5,068 994 3,008
------------- ------------- -----------
Liabilities
Current liabilities
Trade and other payables 14 474 469 467
474 469 467
------------- ------------- -----------
Total liabilities 474 469 467
------------- ------------- -----------
Total equity and liabilities 5,542 1,463 3,475
============= ============= ===========
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHSED 31 MARCH 2020
Total attributable to owners of the Company
Share
option/ Financial Retained Non-controlling
Share Share warrant Exchange assets earnings/ interests Total
capital premium reserve reserve at FVOCI (deficit) Total GBP'000 equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 1
October 2019
(audited) 7,266 10,938 - (33) 3,459 (10,310) 11,320 (76) 11,244
Loss for the
period - - - - - (753) (753) (56) (809)
Other
comprehensive
income - - - 3 - (6) (3) - (3)
--------- --------- -------- ---------- ----------- ----------- ---------- ----------------- ---------
Total
comprehensive
loss
for the period - - 3 - (759) (756) (56) (812)
Capital
reduction (7,023) (10,938) - - (3,459) 11,497 (9,923) - (9,923)
Issue of
ordinary
shares 36 429 - - - - 465 - 465
Issue costs - (10) - - - - (10) - (10)
Share based
payment
transactions - - 30 - - - 30 - 30
(6,987) (10,519) 30 - (3,459) 11,497 (9,438) - (9,438)
Balance at 31
March 2020
(unaudited) 279 419 30 (30) - 428 1,126 (132) 994
========= ========= ======== ========== =========== =========== ========== ================= =========
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
(CONTINUED) FOR THE SIX MONTHSED 30 SEPTEMBER
2020
Total attributable to owners of
the
Company
Share
option/ Financial Non-controlling
Share Share warrant Exchange assets Retained interests Total
capital premium reserve reserve at FVOCI earnings Total GBP'000 equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 1
April 2020
(unaudited) 279 419 30 (30) - 428 1,126 (132) 994
Loss for the
period - - - - - (428) (428) (5) (433)
Other
comprehensive
income - - - (19) - 10 (9) (3) (12)
--------- --------- -------- ----------- ----------- ---------- ---------- ----------------- ---------
Total
comprehensive
income for the
period - - - (19) - (418) (437) (8) (445)
Issue of
ordinary
shares 208 2,289 - - - - 2,497 - 2,497
Share based
payment
transactions - - 33 - - - 33 - 33
Issue costs - (71) - - - - (71) (71)
Transfer - - - 2 - (2) - - -
--------- --------- -------- ----------- ----------- ---------- ---------- ----------------- ---------
208 2,218 33 2 - (2) 2,459 - 2,459
Balance at 30
September
2020 (audited) 487 2,637 63 (47) - 8 3,148 (140) 3,008
========= ========= ======== =========== =========== ========== ========== ================= =========
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
(CONTINUED) FOR THE SIX MONTHSED 31 MARCH 2021
Total attributable to owners of the
Company
Share
option/ Financial Non-
Share Share warrant Exchange assets Retained controlling Total
capital premium reserve reserve at FVOCI earnings Total interests equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 1 October
2020 (audited) 487 2,637 63 (47) - 8 3,148 (140) 3,008
Loss for the period - - - - - (497) (497) (63) (560)
Total other comprehensive
income - - - 42 - (101) (59) 12 (47)
--------- --------- -------- ---------- ----------- ------- ------ --------- ---------
Total comprehensive
loss for the period - - - 42 - (598) (556) (51) (607)
Issue of ordinary shares 142 1,463 - - - - 1,605 - 1,605
Issue costs - (73) - - - - (73) - (73)
Non-controlling interest
on acquisition of
subsidiary - - - - - - - 1,125 1,125
Share based payment
transactions - - 10 - - - 10 10
142 1,390 10 - - - 1,542 1,125 2,667
Balance at 31 March
2021 629 4,027 73 (5) - (590) 4,134 934 5,068
(unaudited)
========= ========= ======== ========== =========== ======= ====== ========= =========
CONDENSED CONSOLIDATED STATEMENT OF CASH
FLOWS FOR THE SIX MONTHSED 31 MARCH
2021
31-Mar-21 31-Mar-20 30-Sep-20
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
Cash flows from operating
activities
Loss from operating activities (560) (809) (1,242)
Adjustments for:
Depreciation and amortisation 18 57 76
Share of loss of equity accounted
associate 71 - 4
Loss on disposal of property, plant - - -
and equipment
Foreign exchange differences 117 (2) (39)
Compensation on cancellation of
SARS scheme - 119 120
Equity-settled share-based payment
transactions 10 30 63
-------------- -------------- ------------
(344) (605) (1,018)
Changes in:
- inventories 7 - -
- trade and other receivables (186) (1) 2
- trade and other payables 45 188 278
-------------- -------------- ------------
Cash used in operating activities (478) (418) (738)
Finance costs - - -
Net cash used in operating
activities (478) (418) (738)
-------------- -------------- ------------
Cash flows from investing
activities
Acquisition of property, plant and (93) - -
equipment
Proceeds from sale of property, - - -
plant and equipment
Exploration and licence expenditure (161) (16) (1)
Investment in associate to date
of control (455) - (938)
Net cash used in investing
activities (709) (16) (939)
-------------- -------------- ------------
Cash flows from financing
activities
Net proceeds from issue of
share capital 1,477 337 1,931
Proceeds from short term - - -
borrowings
Net cash flows from financing
activities 1,477 337 1,931
-------------- -------------- ------------
Net (decrease)/increase in cash
and cash equivalents 290 (97) 254
Cash and cash equivalents at beginning
of period 438 184 184
Cash acquired with subsidiary 158 - -
Effect of foreign exchange - - -
rate changes
-------------- -------------- ------------
Cash and cash equivalents at end
of period 886 87 438
============== ============== ============
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL
STATEMENTS
FOR THE SIX MONTHSED 31 MARCH 2021
1. Reporting entity
Keras Resources plc (the "Company") is a company domiciled in
England and Wales. The condensed consolidated interim financial
statements of the Company as at and for the six months ended 31
March 2021 comprise the Company and its subsidiaries (together
referred to as the "Group") and the Group's interests in associates
and jointly controlled entities. The Group currently operates as an
explorer and developer.
2. Basis of preparation
(a) Statement of compliance
This condensed consolidated interim financial report has been
prepared in accordance with IAS 34 Interim Financial Reporting.
Selected explanatory notes are included to explain events and
transactions that are significant to an understanding of the
changes in financial performance and position of the Group since
the last annual consolidated financial statements as at and for the
year ended 30 September 2020. This condensed consolidated interim
financial report does not include all the information required for
full annual financial statements prepared in accordance with
International Financial Reporting Standards.
This condensed consolidated interim financial report was
approved by the Board of Directors on 23 June 2021.
(b) Judgements and estimates
Preparing the interim financial report requires Management to
make judgements, estimates and assumptions that affect the
application of accounting policies and the reported amounts of
assets and liabilities, income and expense. Actual results may
differ from these estimates.
In preparing this condensed consolidated interim financial
report, significant judgements made by Management in applying the
Group's accounting policies and key sources of estimation
uncertainty were the same as those that applied to the consolidated
financial statements as at and for the year ended 30 September
2020.
3. Significant accounting policies
The accounting policies applied by the Group in this condensed
consolidated interim financial report are the same as those applied
by the Group in its consolidated financial statements as at and for
the year ended 30 September 2020.
4. Financial instruments
Financial risk management
The Group's financial risk management objectives and policies
are consistent with those disclosed in the consolidated financial
statements as at and for the year ended 30 September 2020.
5. Segment information
The Group considers that it operates in two distinct business
areas, manganese mining in West Africa and phosphate mining in
Utah, USA. These business areas form the basis of the Group's
operating segments. For each segment, the Group's Managing Director
(the chief operating decision maker) reviews internal management
reports on at least a quarterly basis.
Other operations relate to the group's administrative functions
conducted at its head office and by its intermediate holding
company together with consolidation adjustments.
Information regarding the results of each reportable segment is
included below. Performance is measured based on segment profit
before tax, as included in the internal management reports that are
reviewed by the Group's Managing Director. Segment results are used
to measure performance as Management believes such information is
the most relevant in evaluating the performance of certain segments
relative to other entities that operate within the exploration
industry.
For the six months ended 31 March 2021 (unaudited)
Other
Manganese Phosphate operationsGBP'000 Total
GBP'000 GBP'000
External revenue - 31 - 31
============== ============ =================== ==========
Loss before tax (60) (110) (390) (560)
============== ============ =================== ==========
Segment assets 1,082 2,958 1,502 5,542
============== ============ =================== ==========
For the six months ended 31 March 2020 (unaudited)
Other
Manganese Phosphate operations Total
GBP'000 GBP'000 GBP'000 GBP'000
External revenue - - - -
============== ============ =================== ==========
Loss before tax (373) - (436) (809)
============== ============ =================== ==========
Segment assets 993 - 470 1,463
============== ============ =================== ==========
For the twelve months ended 30 September 2020 (audited)
Other
Manganese Phosphate operations Total
GBP'000 GBP'000 GBP'000 GBP'000
External revenue - - - -
============== ============ =================== ==========
Profit/(loss) before
tax (405) (4) (833) (1,242)
============== ============ =================== ==========
Segment assets 1,011 1,622 842 3,475
============== ============ =================== ==========
Information about geographical segments:
For the six months ended 31 March 2021 (unaudited)
West US Other Total
Africa operationsGBP'000
GBP'000 GBP'000 GBP'000
External revenue - 31 - 31
========= ========= =================== =========
Loss before tax (60) (110) (390) (560)
========= ========= =================== =========
Segment assets 1,082 2,958 1,502 5,542
========= ========= =================== =========
For the six months ended 31 March 2020 (unaudited)
West US Other Total
Africa operations
GBP'000 GBP'000 GBP'000 GBP'000
External revenue - - - -
========= ========= =================== =========
Loss before tax (373) - (436) (809)
========= ========= =================== =========
Segment assets 993 - 470 1,463
========= ========= =================== =========
For the twelve months ended 30 September 2020 (audited)
West US Other Total
Africa operations
GBP'000 GBP'000 GBP'000 GBP'000
External revenue - - - -
========= ========= =================== =========
Profit/(loss) before
tax (405) (4) (833) (1,242)
========= ========= =================== =========
Segment assets 1,011 1,622 842 3,475
========= ========= =================== =========
6. Seasonality of operations
The Group is not considered to be subject to seasonal
fluctuations.
7. Intangible assets
6 months 6 months 12 months
31 Mar 31 Mar 30 Sep
21 20 (unaudited) 20
(unaudited) GBP'000 (audited)
GBP'000 GBP'000
Cost
Balance at beginning of period 1,227 1,206 1,206
Additions 2,629 16 1
Disposals (158) - -
Effect of movement in exchange rates (61) (1) 20
------------- ---------------- -----------
Balance at end of period 3,637 1,221 1,227
============= ================ ===========
Impairment losses
Balance at beginning of period 158 155 155
Impairment - - -
Amortisation - - -
Disposals (158) - -
Effect of movement in exchange rates - - 3
------------- ---------------- -----------
Balance at end of period - 155 158
============= ================ ===========
Carrying amounts
Balance at end of period 3,637 1,066 1,069
====== ====== ======
Balance at beginning of period 1,069 1,051 1,051
====== ====== ======
Intangible assets comprise the fair value of prospecting and
exploration rights.
8. Property, plant and equipment
Acquisitions and disposals
During the six months ended 31 March 2021 the Group acquired
assets with a cost of GBP263,000 (six months ended 31 March 2020:
GBPnil, twelve months ended 30 September 2020: GBPnil).
Assets with a carrying amount of GBPnil were disposed of during
the six months ended 31 March 2021 (six months ended 31 March 2019:
GBPnil; twelve months ended 30 September 2020: GBPnil), resulting
in a loss on disposal of GBPnil (six months ended 31 March 2019:
GBPnil; twelve months ended 30 September 2020: GBPnil), which is
included in 'administrative expenses' in the condensed consolidated
statement of comprehensive income.
9. Investments
The interest in Falcon Isle was acquired for nominal
consideration under a binding heads of terms dated 28 July 2020.
Under this agreement the Company agreed to provide US$2.5m in loans
to Falcon Isle payable in agreed tranches. Falcon Isle is the 100%
owner of the Diamond Creek phosphate mine located in in Utah (USA)
which is a fully permitted, high grade direct shipping ore organic
phosphate operating mine.
At 30 September 2020 the Company had advanced US$1.9m to Falcon
Isle, resulting in an equity interest of 40% and bringing the cost
of the investment in the associate to GBP1,626,000.
On 31 December 2020 the Company advanced the balance of $0.6m
and its equity interest has increased to 51%.
The initial acquisitions were accounted for under the equity
method of accounting but upon achieving control on 31 December
2020, the acquisition method of accounting has been applied.
The details of the business combination are as follows:
Fair value
GBP'000
Intangibles 2,170
Fixed assets 172
Inventory 142
Receivables 122
Bank balances and cash 158
Trade and other payables (17)
Loans (3,164)
(417)
Adjust: Non controlling
interest 204
Adjust: goodwill 298
Adjust: Equity accounted losses to date
of control 76
---------------
161
===============
GBP'000
Satisfied by:
Acquisition related costs 161
161
=============
10. Inventories
31-Mar-21 31-Mar-20 30-Sep-20
(unaudited)
(unaudited) (audited)
GBP'000 GBP'000 GBP'000
Phosphate 135 - -
135 - -
============= ============= ===========
11. Other investments
31-Mar-21 31-Mar-20 30-Sep-20
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
Equity securities - available for sale
Brought forward - 9,923 9,923
Disposal via demerger - (9,923) (9,923)
- - -
==================== ============= ===========
Equity securities represented ordinary and performance shares in
Calidus Resources Limited ("Calidus"), a company listed on the
Australian Securities Exchange ("ASX").
These equity securities were demerged on 19 November 2019 by way
of a capital reduction scheme.
12. Trade and other receivables
31-Mar-21 31-Mar-20 30-Sep-20
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
Other receivables 352 36 71
Prepayments 39 - 12
391 36 83
============= ============= ===========
Trade receivables and other receivables are stated at their
nominal values less allowances for non recoverability.
13. Share capital and reserves
Issue of ordinary shares
On 18 December 2020, 400,000,000 ordinary shares were issued for
cash at GBP0.0011 per share.
On 18 December 2020 B Moritz and D Reeves, conditionally agreed
to subscribe for 36,363,636 and 63,636,364 shares each at GBP0.0011
per share, these were issued on 18 January 2021 following a General
Meeting to grant increased authority to issue shares.
On 18 January 2021, 869,565,217 ordinary shares were agreed to
be issued at GBP0.00115 per share, of these, B Moritz conditionally
agreed to subscribe for 17,391,304 shares and R Lamming
conditionally agreed to subscribe for 26,086,957 shares in lieu of
part of his salary. Of these shares, 600,000,000 were issued on 18
January 2021 and the balance of 269,565,217 were issued on 15
February 2021 following a General Meeting to grant increased
authority to issue shares.
13. Share capital and reserves (continued)
On 18 January 2021, the company conditionally agreed to issue
48,000,000 ordinary shares at GBP0.00115 per share in settlement of
amounts owing to advisors. These were issued on 15 February 2021
following a General Meeting to grant increased authority to issue
shares.
Dividends
No dividends were declared or paid in the six months ended 31
March 2021 (six months ended 31 March 2020: GBPnil, twelve months
ended 30 September 2020: GBPnil).
14. Trade and other payables
31-Mar-21 31-Mar-20 30-Sep-20
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
Trade payables 146 220 104
Accruals 230 187 228
Other payables 98 62 135
------------- ------------- -----------
474 469 467
============= ============= ===========
There is no material difference between the fair value of trade
and other payables and their book value.
15. Related parties
The total amount due to D Reeves at the period end was GBP43,000
in respect of unpaid remuneration (six months ended 31 March 2020:
GBP19,000, twelve months ended 30 September 2020: GBP31,000). The
total amount due to B Moritz at the period end was GBPnil in
respect of unpaid remuneration (six months ended 31 March 2019:
GBP27,000, twelve months ended 30 September 2020: GBPnil). The
total amount due to Parallel Resources Limited, a company owned and
controlled by R Lamming in respect of unpaid fees at the period end
was GBPnil (six months ended 31 March 2020: GBP28,500, twelve
months ended 30 September 2020: GBPnil).
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END
IR FFFVLRRIVFIL
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June 24, 2021 02:00 ET (06:00 GMT)
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