TIDMPERE
RNS Number : 5591Y
Pembridge Resources plc
17 January 2022
17 January 2022
Pembridge Strategy
Unaudited Balance Sheet as at 31 December 2021 &
Presentation on Strategy
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) 596/2014 AS AMED BY
REGULATION 11 OF THE MARKET ABUSE (AMMENT) (EU EXIT) REGULATIONS
2019/310. UPON THE PUBLICATION OF THIS ANNOUNCEMENT VIA REGULATORY
INFORMATION SERVICE, THIS INSIDE INFORMATION IS NOW CONSIDERED TO
BE IN THE PUBLIC DOMAIN.
London, United Kingdom - Pembridge Resources plc (LSE: PERE)
("Pembridge" or the "Company") is pleased to announce that the
Board of Directors have reviewed strategic options for the future
development of Pembridge and approved the strategy presented by
management.
Highlights
-- Equity of Company positive as at 31 December 2021 based on unaudited balance sheet
-- Strategy approved by board of directors of Pembridge sets out
target to expand investment portfolio focused on investments in the
de-carbonisation of the energy market
-- Equity of Company equivalent to 7.8p per share on fully
diluted share capital after convertible loan conversion into equity
or 10.5p per share without conversion
Unaudited Balance Sheet as at 31 December 2021
The Company's unaudited balance sheet as at 31 December 2021
shows equity of $10.9 million, which is a significant improvement
on the negative equity situation as at 31 December 2020 after
recognising unaudited Total Comprehensive Income of $20.6 million
for 2021.
U naudited Figures 31 December 2021 31 December 2020
Assets $'000 $'000
I nvestments 16,036 9,202
Receivable from Minto re Capstone 5,000 0
Receivable from Minto re funding 4,106 3 ,802
Cash and prepayments 331 4 2
----------------- -----------------
25,473 13,046
Liabilities
Borrowings and other payables (9,579) ( 5,433)
Deferred consideration to Capstone (5,000) ( 18,571)
----------------- -----------------
(14,579) (24,004)
Net Assets 10,894 (10,958)
Equity
Share capital 1,212 965
Share premium and reserves 9,682 (11,923)
----------------- -----------------
10,894 (10,958)
Management Commentary
Investments The Unaudited Investments figure
of $16.0 million as at 31 December
2021 shows an increase of $6.8m
on the prior year as a result
of investing $3 million in the
capital raise undertaken by
Minto Metals Corp. ("Minto")
during its listing on the TSXV
in Q4 2021. The balance of $3.8m
is attributable to the increase
in the market valuation of the
Company's investment in Minto.
Receivable from Minto The unaudited receivable from
Minto includes C$4 million arising
from funding by Pembridge of
Minto Surety Account, plus accrued
interest on this receivable,
which are to be repaid on a
quarterly basis during 2022.
Included are also other receivable
amounts of $0.4 million.
---------------------------------------
Unaudited Share premium and Unaudited share premium and
reserves reserves of $9.7 million in
the Company's unaudited balance
sheet as at 31 December 2021
are as a result of 2021 unaudited
Total Comprehensive Income of
$20.6 million, of which $3.8
million is represented by an
increase in the fair market
valuation of the Company's investment
in Minto and $18.6 million arising
from Minto funding payment to
Capstone Mining Corporation
of the Minto acquisition price.
---------------------------------------
Deferred consideration to Capstone The Minto acquisition from Capstone
purchase price amounted to $20
million. As at 31 December 2021
$15 million of this amount has
been paid to Capstone and the
remaining $5 million are to
be paid by January 2023.
---------------------------------------
Equity value per share If the $3 million convertible
loan made to the Company in
June 2021 is converted into
equity, total equity would be
$13.9 million (GBP10.2 million
at exchange rate of GBP:USD
1.37) which is equivalent to
7.8p per Pembridge share based
on fully diluted share capital
of 130.2 million shares. Without
conversion of the convertible
loan into equity, total diluted
share capital would stand at
103.7 million Pembridge shares
with equity of $10.9 million
being equivalent to 10.5p per
share.
---------------------------------------
Strategy
The Company set out its strategy in 2019 as follows:
1. Strengthen Pembridge so that it can meet its financial
obligations until cash inflows commence from the Minto mine;
2. Bring the Minto mine into operation, establish its management
team and confirm in a in a new 43-101 technical report that the
life of the mine can be extended to 8 years;
3. Provide Minto with the capital needed to implement
improvements, expand exploration and increase production; and
4. Identify new projects that the Company could invest in.
Following Minto's listing on the TSXV and C$31 million capital
raise for that transaction and the publication of Minto's updated
43-101 Preliminary Economic Assessment Technical Report, the
Company now believes that Minto is in a robust financial position
and that the first three phases of the strategy outlined above have
been fulfilled.
Investing in New Projects
Accordingly, the Company has approved a strategy of identifying
new projects to invest in, that can deliver further value to its
shareholders. The Company see a number of opportunities in the
de-carbonisation of the energy market. To that extent it will
review a wide range of projects that can range from mining of
commodities related to the de-carbonisation of the energy market
through to renewable energy projects.
Investment Criteria
The approved strategy sets out key investment criteria guidance
based on which potential projects are to be evaluated. The Strategy
sets out preference for projects that are in production or close to
production stage and have technical reports confirming resources
and/or reserves. The key investment criteria approved in the
Company's strategy are for each investment not to exceed GBP15
million and in all cases equity stakes acquired to be above 10% in
projects with IRR above 12% and preference for projects with
NPV(8%) above $30 million.
Projects in copper mining will be considered as long as they
have minimum annual production of 10 million lbs, minimum life of
mine 7 years, and maximum All In Sustaining Cost (AISC) of
$2.65/lb. Projects in gold mining will be considered as long as
they have minimum annual production of 10,000 oz, minimum life of
mine 7 years, and maximum AISC of $800/oz.
Funding New Projects
Pembridge expects to receive C$4 million from Minto during 2022,
with the first payment of C$1 million at the end of Q1 2022, being
the repayment of historic advances by Pembridge into the Minto
surety account. Further cashflows are expected into the Company in
due course resulting from the payment of dividends, based on its
11.2% economic interest in Minto. Pembridge's proportional share of
the overall project cashflows from the current mine life at Minto,
based on its shareholding, are expected to be US$17M to US$30M
(assuming copper price range of US$3.10 to US$3.75 per tonne and
including receivable of $4.1 million from Minto). These cashflows,
which are dependent on the dividend policy of Minto, are expected
to provide significant funding to advance any new projects that
Pembridge invests in.
[The strategy presentation is available through the attached
link and on the Company's website]
www.pembridgeresources.com
http://www.rns-pdf.londonstockexchange.com/rns/5591Y_1-2022-1-16.pdf
Gati Al-Jebouri, Chief Executive Officer and Chairman of the
Board of Pembridge said:
"This is an exciting time for Pembridge. Having achieved what,
we set out to do with our investment in Minto Metals Corp. we are
now in a position to consider the future of growing Pembridge
itself. Our single asset portfolio is a very strong basis for
growing Pembridge by identifying and investing in new investments
that will add value to our company.
In the Strategy Presentation that we have released today, we
have set out the nature of projects that we are looking to invest
in, and what we would look for in such projects in the copper
mining, gold mining, oil and gas and renewable energy sectors. I
look forward to updating the market as soon as we identify a
project that meets our investment criteria."
Cautionary Statement
This News Release includes certain "forward-looking statements"
which are not comprised of historical facts. Forward-looking
statements include estimates and statements that describe the
Company's future plans, objectives or goals, including words to the
effect that the Company, or management, expects a stated condition
or result to occur. Forward-looking statements may be identified by
such terms as "believes", "anticipates", "expects", "estimates",
"may", "could", "would", "will", or "plan". Since forward-looking
statements are based on assumptions and address future events and
conditions, by their very nature they involve inherent risks and
uncertainties. Although these statements are based on information
currently available to the Company, the Company provides no
assurance that actual results will meet management's expectations.
Risks, uncertainties and other factors involved with
forward-looking information could cause actual events, results,
performance, prospects and opportunities to differ materially from
those expressed or implied by such forward-looking information.
Forward-looking information in this news release includes, but is
not limited to, the Company's intentions regarding its objectives,
goals or future plans and statements. Factors that could cause
actual results to differ materially from such forward-looking
information include, but are not limited to, the Company's ability
to predict or counteract the potential impact of COVID-19
coronavirus on factors relevant to the Company's business, failure
to identify additional mineral resources, failure to convert
estimated mineral resources to reserves with more advanced studies,
the inability to eventually complete a feasibility study which
could support a production decision, the preliminary nature of
metallurgical test results may not be representative of the deposit
as a whole, delays in obtaining or failures to obtain required
governmental, environmental or other project approvals, political
risks, uncertainties relating to the availability and costs of
financing needed in the future, changes in equity markets,
inflation, changes in exchange rates, fluctuations in commodity
prices, delays in the development of projects, capital, operating
and reclamation costs varying significantly from estimates and the
other risks involved in the mineral exploration and development
industry, and those risks set out in the Company's public
documents. Although the Company believes that the assumptions and
factors used in preparing the forward-looking information in this
news release are reasonable, undue reliance should not be placed on
such information, which only applies as of the date of this news
release, and no assurance can be given that such events will occur
in the disclosed time frames or at all. The Company disclaims any
intention or obligation to update or revise any forward-looking
information, whether as a result of new information, future events
or otherwise, other than as required by law.
ENDS
NOTES TO EDITORS
Pembridge is a mining company that is listed on the standard
segment of the Official List of the FCA and trading on the main
market for listed securities of London Stock Exchange plc.
Pembridge has an investment in Minto Metals Corp, a British
Columbia incorporated business listed on the TSX Venture Exchange
under the symbol "MNTO" that operates the Minto mine in Yukon,
Canada.
About Minto Metals Corp
Minto Metals Corp operates the underground copper-gold-silver
mine located in central Yukon, approximately 240 kilometres north
of the capital Whitehorse along the Klondike Highway. In excess of
US$350 million of capital expenditure has been invested into Minto
operations since site construction began in 2006. The Minto mine
was in continuous production between 2007 and 2018, when the mine
was placed onto temporary care and maintenance. Pembridge acquired
the Minto mine from Capstone Mining Corporation in June 2019 and
restarted operations in October 2019.
Enquiries:
Pembridge Resources plc: +44 (0) 7905 125740
Gati Al-Jebouri, Chief Executive Officer and Chairman of the
Board
David James, Chief Financial Officer
Tavira Securities - United Kingdom: +44 (0)20 7100 5100
Jonathan Evans
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END
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