TIDMPOW
RNS Number : 3474Q
Power Metal Resources PLC
27 June 2022
27 June 2022
Power Metal Resources plc / EPIC: POW / Market: AIM
Power Metal Resources plc ("POW", "Power Metal" or the
"Company")
Interim Results
Power Metal Resources plc, the London listed exploration company
seeking large-scale metal discoveries across its global project
portfolio , announces its unaudited interim results for the six
month period ended 31 March 2022.
Paul Johnson, Chief Executive Officer of Power Metal commented:
"There is an underlying confidence and optimism that permeates the
Power Metal business and the team within it.
We recognise the pressure challenging markets and falling share
prices place on investor portfolios and are respectful of this
whilst still enthusiastically articulating our progress and our
ambitions.
Power Metal is at a key point with all projects having been the
recipient of varying extents of exploration, which has been a
substantial exercise given the breadth of our portfolio.
Where appropriate we are pursuing accelerated value
crystallisation by preparing parts of our business for
spin-out/disposals as you will see in the summary table below. Our
internal exploration efforts will be focused on a smaller group of
retained projects.
From this point acquisitions will be principally targeting
additional uranium opportunities where we do see the value of
continued growth of the uranium portfolio within our company.
My thanks go to the Power Metal team for their demonstrable
commitment to progressing our business and to shareholders who have
backed our work to date. Our ultimate objective is to deliver
considerable financial returns to our shareholders and our focus to
date has been to build a company capable of delivering that through
volatile markets.
My very best to investors in the junior resource sector, a
unique group of people willing to risk their capital, in a highly
volatile sector, to deliver a financial return and enhanced
opportunities in life. For those allocating capital to Power Metal
we will strive to help you succeed in your ambitions."
NOTE:
The interim report contains the following key sections:
- Key Developments in the half year to 31 March 2022;
- Power Metal Interests as at today's date;
- Operational Highlights for the half year to 31 March 2022;
- Operational Highlights after the half year end (April 2022 to date);
- Financial Highlights for the half year ended 31 March 2022; and
- Interim Financial Accounts for the half year ended 31 March 2022
Power Metal plans to release its next Quarterly Business and
Operational Update for the second quarter in July, capturing latest
developments within the business in addition to the information
provided below.
KEY DEVELOPMENTS IN THE HALF YEAR TO 31 MARCH 2022
The half year period included extensive exploration activity
including:
- Reverse circulation (RC) drilling at the Tati Project located in Botswana.
- Delineation of 12 airborne magnetic targets at the Ditau
Project in Botswana and commencement of diamond drill
programme.
- Diamond drilling at the Haneti Project in Tanzania.
- Diamond drilling at the Victoria Goldfields in Australia.
- Confirmation of bonanza silver from diamond drilling at the
Silver Peak Project located in British Columbia, Canada.
- High-grade uranium confirmed from sampling undertaken at the
Saskatchewan uranium property portfolio.
The half year period also included extensive corporate activity
including:
- Acquisition of the Pilot Mountain Project which hosts a robust
tungsten-dominated Mineral Resource Estimate (MRE) located in
Nevada, USA, and forming the completed Golden Metal Resources plc
("Golden Metal Resources") planned listing vehicle.
- Acquisition of the Western Australia and Northern Territory
projects comprising the planned listing vehicle First Development
Resources Ltd.
- Grant of key exploration licences, environmental approvals,
and heritage agreements across various of the Company's global
project interests.
- Completion of the disposal of the Company's Schreiber-Hemlo
interests located in Ontario, Canada, to First Class Metals PLC who
plan to list in London in 2022.
- Expansion of the Company's uranium interests surrounding the
Athabasca basin located in Saskatchewan, Canada, and preparation of
data rooms and factsheets for 7 uranium properties.
POWER METAL INTERESTS AT TODAY'S DATE
Country POW % Project Package Resources Targeting Status
Australia 49.9% New Ballarat Gold Gold Balance of
Corporation drill results
Victoria Goldfields awaited -
JV Planned IPO
---------- ----------------------- --------------------- -------------------
Australia 82.78%(*) First Development Copper - Gold Planned IPO
Resources - Uranium - in progress
Rare Earths
- Lithium
---------- ----------------------- --------------------- -------------------
Australia 100% Gawler Project Copper - Gold Awaiting
licence grants
---------- ----------------------- --------------------- -------------------
Botswana 52.60%(#) Molopo Farms Complex Nickel - Copper Transition
- Platinum Group of ownership
Metals (PGMs) then drilling.
---------- ----------------------- --------------------- -------------------
Botswana 100% Tati Greenstone Gold - Nickel Preparations
Belt for next
step drilling
key gold
targets
---------- ----------------------- --------------------- -------------------
Botswana 50% Kalahari Copper Copper - Silver Exploration
Belt JV underway
to delineate
drill targets
---------- ----------------------- --------------------- -------------------
Botswana 50% Ditau Camp JV Rare Earths Diamond drilling
underway
- await assays
---------- ----------------------- --------------------- -------------------
Canada 30% Silver Peak Silver Ongoing discussion
of exploration
plans & corporate
options
---------- ----------------------- --------------------- -------------------
Canada Earn-in Authier North Lithium Finalisation
up to of next stage
100% exploration
steps
---------- ----------------------- --------------------- -------------------
Canada 100% Athabasca Basin Uranium Finalisation
of next stage
exploration
steps & corporate
options
---------- ----------------------- --------------------- -------------------
Canada 36.3% First Class Metals Gold - Nickel Planned IPO
- Copper - Zinc in Progress
---------- ----------------------- --------------------- -------------------
Tanzania 35% Haneti Nickel - Copper Finalisation
- Platinum Group of next stage
Metals (PGMs) exploration
- Gold - Lithium steps & corporate
options
---------- ----------------------- --------------------- -------------------
USA 83.13% Golden Metal Resources Gold - Silver Planned IPO
- Copper - Tungsten in Progress
- Zinc
---------- ----------------------- --------------------- -------------------
USA Earn-in Alamo Gold Gold Review of
up to detailed
75% exploration
report findings
---------- ----------------------- --------------------- -------------------
(*) Reducing to 62.12% after Completion of the Pre-IPO
Financing
(#) Subject to completion of acquisition announced 18.5.22
interest will increase to 87.71%
OPERATIONAL HIGHLIGHTS FOR THE HALF YEAR TO 31 MARCH 2022
African Project Interests
Tati Greenstone Project
-- In October 2021 a 1,000m RC drill programme was commenced at
the Tati Project located in the Tati Greenstone Belt of
north-eastern Botswana. The main goal of the drill programme was to
test for the presence of geological formations which host nearby
operating Gold (Au) and Nickel (Ni) mines within the Tati
Greenstone Belt.
-- Results from the 1,000m RC drilling programme were released
after the period end and are outlined below.
Molopo Farms Complex Project
-- In November 2021 Kavango Resources PLC (LON:KAV "Kavango")
signed an option agreement with Kalahari Key Mineral Exploration
Pty Limited ("KKME"), the holder of a 60% interest in the Molopo
Farms Complex Project (Power Metal holds the remaining 40%). The
option agreement was to acquire 100% of the outstanding KKME
shares.
-- The option was extended on two occasions but in February
2022, Kavango withdrew, unable to agree the final terms for
acquisition with all shareholders. In May 2022, as outlined below,
Power Metal secured a conditional agreement to acquire an
additional 58.7% of the remaining KKME shares to take its overall
shareholding in KKME to 87.71%.
-- Following completion of the 2021 diamond drill campaign, in
January 2022, the Company announced the renewal for 2 years of two
key prospecting licences covering the Molopo Farms Complex
Project:
- PL310/2016 (221.4km(2) )
- PL311/2016 (486.2km(2) )
Kanye Resources Joint Venture
-- The Kanye JV includes 4,257km(2) of ground within the
Kalahari Copper Belt ("KCB") located in northern Botswana over ten
prospecting licences. During the period, ground exploration and
drill target planning continued in the KCB, and in October 2021,
the JV confirmed approval of the Environmental Management Plan
("EMP"), clearing the last key administrative hurdle, and enabling
drilling to be undertaken subject to the results of the ongoing
target refinement.
-- The Kanye JV also includes the Ditau Camp Project ("Ditau" or
the "Ditau Project") located in southwestern Botswana, which is
considered to be prospective for rare-earth element ("REEs") and
base-metal mineralisation. In March 2022, the Company announced the
identification of 12 airborne magnetic targets the Ditau Project
with the highest profile targets selected for inclusion in a
diamond drill programme which commenced following the period end.
The targets included:
- i10 Target (a discrete circular airborne magnetic anomaly with a diameter of 2.2km)
- i8 Target (a larger ring-like anomaly with a diameter of 4km)
- i1 Target (that may represent a large, 7km x 18.5km intrusive complex)
-- Whilst the drilling campaign would primarily target REE
mineralisation hosted within interpreted carbonatites or felsic
intrusives, the targets could also be related to layered mafic
intrusive systems, which are considered by the Company to be
prospective for nickel, copper, and platinum group element ("PGE")
mineralisation.
Haneti Project
-- In January 2022, the Company announced the commencement of
the inaugural diamond drill campaign at the Haneti Project
targeting nickel-copper-cobalt and PGE magmatic sulphide
mineralisation.
-- By February 2022, the drill campaign had successfully
completed a total of 900.04 meters of drilling; intersections of
serpentine and gabbroic rocks were identified and following core
logging the project moved into the sampling and testing phase.
-- Assay results from the sampling and testing phase were
released after the period end and are outlined below.
Australian Project Interests
New Ballarat Gold Corporation (Victoria Goldfields JV)
-- The JV with Red Rock Resources plc (LON:RRR) had previously
submitted licence applications over c. 2,300km(2) of ground within
the prolific Victorian goldfields, and during the period saw
further licence applications granted. By December 2021, a total of
9 exploration licences were granted covering 1,501km(2) , several
of which cover high priority exploration targets.
-- Various desktop and field exploration work continued through
the period and in December 2021, inaugural diamond drilling
commenced targeting gold mineralisation at the O'Loughlin's and Mt.
Bute prospects.
First Development Resources
-- In October 2021, the Company announced that its wholly owned
subsidiary First Development Resources Ltd ("FDR UK"), had acquired
outright First Development Resources PTY Limited (FDR Australia),
an Australian private company holding 4 granted exploration licence
interests and one licence application interest in Western
Australia. Additionally, a A$165,000 government co-funding drilling
support grant was awarded for the Wallal Project held by FDR
Australia.
-- FDR UK commenced preparations for a UK listing, and in
November 2021, announced FDR Australia had acquired URE Metals PTY
Limited, the holder of three exploration licence applications
covering 1,574.92km(2) prospective for uranium and REE
mineralisation within the Northern Territory, Australia.
-- In November 2021, the Company saw the grant of the final
Western Australia licence held by FDR Australia, Braeside West, and
in February 2022, the grant of all three Selta Project licences in
the Northern Territory and the launch of an in-depth review of all
geological, geophysical, and geochemical information available over
the project. The results of this review announced in March 2022,
confirmed multiple high-priority targets for uranium and REE
mineralisation.
-- In February 2022, the Company also announced the results of a
comprehensive desktop study over the Paterson region projects,
which included several developments from the magnetic bullseye
targets located within the Wallal Project.
Gawler Project
-- In October 2021, Power Metal's 100% owned Australian
subsidiary Power Metal Resources Australia Pty Limited, lodged
applications covering 1,994Km(2) within the Gawler Craton of South
Australia, which are specifically targeting gold-copper
mineralisation.
North American Project Interests
Silver Peak Project
-- The assay results following a summer 2021 diamond drilling
programme at the Silver Peak Project located in British Columbia,
Canada, were released in November 2021. The results highlighted
bonanza grade silver (>1,000g/t) in 10 of the 19 holes drilled,
including a top intercept of 0.76m of 8,692.2g/t Ag (279.5
oz/t).
-- Furthermore, overlimit assays were completed which returned
high-grade copper, antimony, and lead, with the highlight result
increasing to 0.76m of 10,131g/t Ag-Equivalent.
Saskatchewan Uranium Properties
-- Building on the initial staking of exploration properties
completed in September 2021, in October the Company announced an
expansion of its wholly owned uranium interests to 7 properties
covering a combined 241km(2) , surrounding the prolific Athabasca
Basin in Saskatchewan, Canada. The package was further increased to
411.96km(2) as announced in November 2021.
-- Also announced in November 2021 was the launch of an
inaugural exploration sampling programme covering 3 of the 7
properties, the results from which were announced in December 2021,
and confirmed high-grade uranium in rock samples with highlight
results up to 3.86% U (3) 0 (8) (38,600ppm).
-- In January 2022, the Company launched an extensive data
compilation over all 7 properties to provide data rooms for
internal use and factsheets to assist third parties expressing an
interest in the properties.
-- In February 2022, the Company announced the results from the
Reitenbach Property review, confirming extensive uranium
prospectivity and that various commercial options for the Property
were under review. A National Instrument 43-101 technical report
for Reitenbach to assist the commercialisation process was
commissioned in March 2022, the results of which will be announced
in due course.
Authier North Project
-- A programme of rock and soil sampling launched in September
2021 demonstrated the highest lithium results located in the
eastern part of the Authier North Project, within the northeast and
south-eastern grids. In the period, the Company reviewed next-stage
exploration plans which may include additional infill soil sampling
between the two grids, as well as possible ground-based geophysical
surveys over the entire project.
Golden Metal Resources
-- Golden Metal Resources continued to work on preparations for
its planned IPO in the period which would see the listing of a
Nevada-focused exploration business in London.
-- In December 2021, the Company announced a successful pre-IPO
financing for Golden Metal Resources at a pre-money valuation of
GBP3.25million, raising GBP750,000 (including GBP75,000 subscribed
by Power Metal and GBP50,000 by Paul Johnson, Power Metal CEO).
-- The Company announced In October 2021 that new copper
anomalies had been identified from exploration work over the
Garfield Project leading to additional staking of claims to cover
the newly defined anomalies.
-- In November 2021, the Company completed the 100% acquisition
of the Pilot Mountain Project into Golden Metal Resources plc from
AIM-listed Thor Mining PLC (LON:THR).
-- A detailed exploration update covering all four properties
(Pilot Mountain, Golconda, Garfield, and Stonewall) was announced
in November 2021, and a further commercial & project update was
released in February 2022.
Alamo Project
-- In November 2021 the Company announce the commencement of the
test pitting programme at the Alamo Project in Arizona USA the
results of which remained outstanding at the half year end and as
at the date of this report further technical information has been
received which is currently under review (see below).
OPERATIONAL HIGHLIGHTS AFTER THE HALF YEAR (APRIL 2022 TO
DATE)
African Project Interests
Tati Greenstone Project
-- In April 2022, the Company announced drill results from the
RC drill programme which commenced in October 2021. The programme
successfully identified the targeted geological formations and gold
in assays were returned from 7 holes which were targeted within a
previously identified Au-in-soil anomaly. The highlight results
included 5.17g/t Au over a 3m intersection from only 9m
downhole.
-- Following these results and a further geological review, the
Company secured an additional prospecting license over ground
covering the historical Cherished Hope Gold Mine, which added
16.14km(2) , further increasing the Tati Project footprint to
140km(2) .
Molopo Farms Complex Project
-- In May 2022, the Company announced it had signed an initial
agreement with the shareholders of Kalahari Key Mineral Exploration
Pty Ltd ('KKME") to acquire an additional 58.7% of the issued share
capital of KKME. The goal is to then restructure the ownership of
the Molopo Farms Complex project so that KKME's 100% interest is
restored and to become the operator of the Molopo Farms Complex
Project.
-- Upon completion of the acquisition and further restructuring,
the Company will hold 87.71% of the issued share capital of
Kalahari Key Mineral Exploration Pty Ltd.
Kanye Resources Joint Venture
-- In April 2022, the Company announced the commencement of
diamond drilling at the Ditau Camp Project. The programme includes
up to 2,400m of drilling within 6 holes targeting 3 high-priority
exploration areas.
-- In May 2022, the Company also announced the expansion of the
exploration programme to include 16.1 line-km of
Audio-Magnetotelluric ("AMT") geophysics surveys over various
target areas.
-- Drill programme updates have been provided post half year end
including second hole DITDD004 which demonstrated highly elevated
magnetic susceptibility readings between 293m and 321m (the "Zone
of Interest"). The core from the Zone of Interest has been sent for
rush assay.
Haneti Project
-- In May 2022, the Company announced the drill results from the
diamond drill programme where all drillholes intersected
significant sequences of altered ultramafic and mafic rocks,
representing the first ever fresh rock drill core samples extracted
from the Haneti Project.
-- Integration of thin section petrographic analyses with bulk
rock geochemical results across multiple intersected lithological
units suggest that the PGE potential at Haneti is limited to
serpentinite units, and that nickel and copper mineralisation
should preferentially be targeted within the intrusive gabbro
units.
-- Whilst the drilling results showed anomalous results for
nickel, copper, gold, and PGE's that are subject to further
interpretation, economically significant intersections of these
metals were not encountered in the drilling.
-- Simultaneously, rock sampling results from the Babayu Lithium
Prospect highlight significant lithium and tantalum potential with
lithium-caesium-tantalum ("LCT") pegmatite mineralisation outlined
over a 600m strike-length. The chip sample results (up to
>10,000ppm Li and 2,680ppm tantalum) and strike length combined
with the perceived shallow dip of the main pegmatite body highlight
the potential for a significant near-surface mineralised body that
warrants further assessment and evaluation.
-- Licence applications have been made in respect of the areas
considered prospective for lithium and the JV is currently
implementing a lithium consolidation strategy including existing
lithium applications and reviewing potential partnerships with
local licence holders.
Togo Uranium
-- In June 2022 Power Metal announced an agreement to evaluate,
acquire and explore new uranium opportunities in Togo, West
Africa.
Australian Project Interests
New Ballarat Gold Corporation (Victoria Goldfields JV)
-- In the period the JV's combined footprint within the Victoria
Goldfields increased to 1,832km(2) from 14 granted exploration
licences, including key licence grants in May 2022 - notably
EL007330 located northeast of Ballarat, Australia. Significantly,
this newly granted licence covers the historical Ajax gold mine
which historically produced 312,789oz Au at an average grade of
14.8g/t Au in the 1920s.
-- In the period, the JV has undertook 860m of diamond drilling
programme targeting the O'Loughlin's and Mt Bute Prospects, located
30km and 20km from the town of Ballarat, Australia,
respectively.
-- Initial assay results from the O'Loughlins Prospect were
released on 12 April 2022, demonstrating high-grade gold from
O'Loughlins and further results released in June 2022, noted the
discovery of intrusion related gold (IRG) mineralisation confirmed
at Mt Bute Prospect.
First Development Resources
-- In April 2022, the CEO of FDR UK undertook a site visit to
the FDR Australia projects and conducted meetings with key
relationship partners in Western Australia and the Northern
Territory.
-- A Selta project focused update was released in May 2022,
confirming enhanced REE prospectivity and an additional REE
exploration target area.
-- In June 2022, FDR UK completed a GBP1,125,000 pre-IPO
fundraise with a GBP3,000,000 pre-money valuation (Including
GBP75,000 subscription from Power Metal and GBP50,000 from Power
Metal CEO Paul Johnson).
-- Following a lithium specific review completed in June 2022,
FDR UK mobilised a field investigation team to conduct mapping and
surface sampling at identified lithium prospective targets.
North American Project Interests
Saskatchewan Uranium Properties
-- The Company has completed an in-depth historical data
compilation across its entire Uranium Portfolio surrounding the
prolific Athabasca Basin and now possesses a robust fully digitised
database covering all historical work programmes completed across
each asset.
Golden Metal Resources
-- Golden Metal Resources continued to progress preparations for
its planned London listing, assisted by advisors across all related
disciplines.
Alamo Project
-- In June 2022 Power Metal received a further technical report
in respect of the Alamo Project work programme which is under
review at present.
FINANCIAL HIGHLIGHTS FOR THE HALF YEARED 31 MARCH 2022
-- Loss for the period, attributable to owners of the parent of
GBP1.69 million (2021: GBP0.59 million), resulting in loss per
share of 0.12 pence (2021: 0.07 pence);
-- Financing undertaken in November 2021 raising GBP1.05 million
and warrant and option exercises during the period raised GBP0.59
million for the Company;
-- Total assets of GBP9.24 million at the period end (30 September 2021: GBP6.28 million); and
-- Net assets of GBP8.01 million at the period end (30 September 2021: GBP5.97 million).
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it
forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with
the Company's obligations under Article 17 of MAR.
For further information please visit POW
https://www.powermetalresources.com/ or contact:
Power Metal Resources plc
Paul Johnson (Chief Executive Officer) +44 (0) 7766 465 617
SP Angel Corporate Finance (Nomad and Joint Broker)
Ewan Leggat/Charlie Bouverat +44 (0) 20 3470 0470
SI Capital Limited (Joint Broker)
Nick Emerson +44 (0) 1483 413 500
First Equity Limited (Joint Broker)
David Cockbill/Jason Robertson +44 (0) 20 7330 1883
Notes to Editors:
Power Metal Resources plc (LON:POW) is an AIM listed metals
exploration company which finances and manages global resource
projects and is seeking large scale metal discoveries.
The Company has a principal focus on opportunities offering
district scale potential across a global portfolio including
precious, base, and strategic metal exploration in North America,
Africa, and Australia.
Project interests range from early-stage greenfield exploration
to later-stage prospects currently subject to drill programmes.
Power Metal will develop projects internally or through
strategic joint ventures until a project becomes ready for disposal
through outright sale or separate listing on a recognised stock
exchange thereby crystallising the value generated from our
internal exploration and development work.
Value generated through disposals will be deployed internally to
drive the Company's growth or may be returned to shareholders
through share buy backs, dividends, or in-specie distributions of
assets.
POWER METAL RESOURCES PLC
UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHSED 31 MARCH 2022
6 months 6 months Year
ended ended ended
31-Mar-22 31-Mar-21 30-Sep-21
(unaudited) (unaudited) (audited)
Note GBP'000 GBP'000 GBP'000
-------------- -------------- ------------
Revenue 198 17 37
Gross profit 198 17 37
Operating expenses (1,330) (660) (847)
Impairment - - (156)
Fair value gains through profit or loss (405) 66 445
Loss from operating activities (1,537) (578) (521)
Finance expense - - -
Share of post-tax losses of equity
accounted joint ventures (175) (30) (102)
Loss before taxation (1,712) (607) (623)
Taxation - - -
-------------- -------------- ------------
Loss for the period from continuing operations (1,712) (607) (623)
-------------- -------------- ------------
Items that will or may be reclassified to profit or loss
Exchange translation 78 18 1
Total other comprehensive income 78 18 1
-------------- -------------- ------------
Total comprehensive expense for the period (1,634) (589) (622)
============== ============== ============
Loss for the period attributable to:
Owners of the parent (1,691) (589) (592)
Non-controlling interests (21) (18) (31)
(1,712) (607) (623)
Total comprehensive expense attributable to:
Owners of the parent (1,613) (571) (591)
Non-controlling interests (21) (18) (31)
-------------- -------------- ------------
(1,634) (589) (622)
============== -------------- ------------
Loss per share from continuing operations attributable to the ordinary equity holder of the
parent:
Basic (pence) 4 (0.12) (0.07) (0.05)
POWER METAL RESOURCES PLC
UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2022
31-Mar-22 (unaudited) 31-Mar-21 30-Sep-21
GBP'000 (unaudited) (audited)
Note GBP'000 GBP'000
----------------------- --- -------------- --- ----------------
Assets
Intangible assets 2,782 156 800
Investments in associates and
joint ventures 156 366 166
Financial assets at fair value
through profit or loss 3,539 2,157 3,527
Property, plant & equipment 22 3 2
----------------------- --------------
Non-current assets 6,499 2,682 4,495
----------------------- -------------- ----------------
Financial assets at fair value
through profit or loss 66 - 179
Assets classified as held for
sale - - 153
Trade and other receivables 1,240 155 175
Cash and cash equivalents 1,435 1,967 1,281
----------------------- -------------- ----------------
Current assets 2,741 2,122 1,788
----------------------- -------------- ----------------
Total assets 9,240 4,804 6,283
======================= ============== ================
Equity
Share capital 5 7,918 7,608 7,705
Share premium 21,871 17,400 18,437
Capital redemption reserve 5 5 5
Share based payments reserve 1,576 1,287 1,541
Foreign exchange reserve 150 89 72
Accumulated losses (23,179) (21,518) (20,448)
----------------------- -------------- ----------------
8,341 4,871 6,272
----------------------- -------------- ----------------
Non-controlling interests (327) (293) (306)
----------------------- -------------- ----------------
Total equity 8,014 4,578 5,966
----------------------- -------------- ----------------
Liabilities
Trade and other payables 1,226 226 317
Current liabilities 1,226 226 317
----------------------- -------------- ----------------
Total liabilities 1,226 226 317
----------------------- -------------- ----------------
Total equity and liabilities 9,240 4,804 6,283
======================= ============== ================
POWER METAL RESOURCES PLC
UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHSED 31 MARCH 2022
Share
Capital based
Share Share redemption payment Exchange Accumulated Non-controlling Total
capital premium reserve reserve reserve losses 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 2021
(audited) 7,705 18,437 5 1,541 72 (21,488) 6,272 (306) 5,966
-------- -------- ----------- -------- --------- ----------- -------- ---------------- --------
Loss for the
period - - - - - (1,691) (1,691) (21) (1,712)
Total other
comprehensive
expense - - - - 78 - 78 - 78
Total
comprehensive
expense for
the
period - - - - 78 (1,691) (1,613) (21) (1,634)
-------- -------- ----------- -------- --------- ----------- -------- ---------------- --------
Issue of
ordinary
shares 213 3,496 - - - - 3,709 - 3,709
Cost of share
issues - (62) - - - - (62) - (62)
Share-based
payments - - - 35 - - 35 - 35
213 3,434 - 35 - - 3,682 - 3,682
-------- -------- ----------- -------- --------- ----------- -------- ---------------- --------
Balance at 31
March 2022
(unaudited) 7,918 21,871 5 1,576 150 (23,179) 8,341 (327) 8,014
======== ======== =========== ======== ========= =========== ======== ================ ========
POWER METAL RESOURCES PLC
UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHSED 31 MARCH 2021
Share
Shares Capital based
Share Share to be redemption payment Exchange Accumulated Non-controlling Total
capital premium issued reserve reserve reserve losses Total interests Equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 1
October 2020
(audited) 7,286 14,910 22 5 1,286 71 (20,911) 2,669 (275) 2,394
-------- -------- -------- ----------- -------- --------- ----------- -------- ---------------- --------
Loss for the
period - - - - - - (607) (607) (18) (625)
Total other
comprehensive
expense - - - - - 18 - 18 - 18
--------
Total
comprehensive
expense for
the
period - - - - - 18 (607) (589) (18) (607)
-------- -------- -------- ----------- -------- --------- ----------- -------- ---------------- --------
Issue of
ordinary
shares 322 2,510 (22) - - - - 2,810 - 2,810
Cost of share
issues - (20) - - - - - (20) - (20)
Share-based
payments - - - - 1 - - 1 - 1
--------
322 2,490 (22) - 1 - - 2,791 - 2,791
-------- -------- -------- ----------- -------- --------- ----------- -------- ---------------- --------
Balance at 31
March 2021
(unaudited) 7,608 17,400 - 5 1,287 89 (21,518) 4,871 (293) 4,578
======== ======== ======== =========== ======== ========= =========== ======== ================ ========
POWER METAL RESOURCES PLC
UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEARED 30 SEPTEMBER 2021
Share
Shares Capital based
Share Share to be redemption payment Exchange Retained Non-controlling Total
capital premium issued reserve reserve reserve Deficit Total interests Equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance
at 1 October
2020
(audited) 7,286 14,910 22 5 1,286 71 (20,911) 2,669 (275) 2,394
-------- -------- --------- ----------- -------- --------- --------- -------- ---------------- --------
Loss for
the year - - - - - - (592) (592) (31) (623)
Total other
comprehensive
expense - - - - - 1 - 1 - 1
Total
comprehensive
expense
for the
period - - - - - 1 (592) (591) (31) (622)
-------- -------- --------- ----------- -------- --------- --------- -------- ---------------- --------
Adjustment
for previous
year (19) 19 - - - - - - - -
Issue of
ordinary
shares 438 3,546 (22) - - - - 3,962 - 3,962
Cost of
share issues - (38) - - - - - (38) - (38)
Share-based
payments - - - - 270 - - 270 - 270
Warrant
exercises - - - - (15) 15 - -
419 3,527 (22) 5 255 - - 4,194 - 4,194
-------- -------- --------- ----------- -------- --------- --------- -------- ---------------- --------
Balance
at 30
September
2021
(audited) 7,705 18,437 - 5 1,541 72 (21,488) 6,272 (306) 5,966
======== ======== ========= =========== ======== ========= ========= ======== ================ ========
POWER METAL RESOURCES PLC
UNAUDITED CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHSED 31 MARCH 2022
6 months 6 months Year
ended ended ended
31-Mar-22 31-Mar-21 30-Sep-21 (audited) GBP'000
(unaudited) (unaudited)
GBP'000 GBP'000
-------------- -------------- ------------------------------
Cash flows from operating activities
Loss for the period (1,712) (607) (623)
Adjustments for:
* Fair value adjustment 405 3 (445)
* Share of post-tax losses of equity accounted joint
ventures 175 29 102
* Fees settled in shares 378
* Share based payment expense 35 1 270
* Foreign exchange differences 78 - 1
* Impairment of intangible assets - - 156
(641) (574) (539)
Changes in working capital:
- Trade and other receivables (1,063) (45) (65)
- Trade and other payables 908 64 40
-------------- -------------- ------------------------------
Net cash used in operating activities (796) (555) (564)
-------------- --------------
Cash flows from investing activities
Purchase of intangibles (295) - (528)
Investment in financial assets at fair value through profit or loss (321) (228) (2,184)
Investment in Joint Ventures (165) (951) (256)
Proceeds from investment disposals 171 - 261
Purchase of property, plant and equipment (20) (3) (2)
Net cash used in investing activities (630) (1,182) (2,709)
-------------- -------------- ------------------------------
Cash flows from financing activities
Proceeds from issue of share capital 1,643 2,810 3,679
Issue costs (63) (20) (38)
Net cash flows from financing activities 1,580 2,790 3,641
-------------- -------------- ------------------------------
Net increase/(decrease) in cash and cash equivalents 154 (1,054) 368
Cash and cash equivalents at beginning of period 1,281 913 913
Cash and cash equivalents at end of period 1,435 1,967 1,281
============== ============== ==============================
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL REPORT
1. Reporting entity
Power Metal Resources plc is a company domiciled in the United
Kingdom. The unaudited consolidated interim financial report of the
Group as at and for the period ended 31 March 2022 comprises the
results of the Company and its subsidiaries. The Group primarily is
involved in the exploration and exploitation of mineral resources
in Australia, Botswana, Cameroon, the DRC, and Tanzania.
2. Basis of preparation
(a) Statement of compliance
As permitted, IAS 34, 'Interim Financial Reporting' has not been
applied in this interim report.
The financial information presented in this interim report has
been prepared using accounting policies that are expected to be
applied in the preparation of the financial statements for the year
ending 30 September 2022.
These policies are in accordance with the recognition and
measurement principles of International Financial Reporting
Standards, International Accounting Standards, and Interpretations
(collectively IFRS) issued by the International Accounting
Standards Board as endorsed for use in the United Kingdom, and
these principles are disclosed in the Financial Statements for the
year ended 30 September 2021.
The interim results have been prepared on a going concern basis.
The financial information in this interim report does not
constitute statutory accounts within the meaning of Section 435 of
the Companies Act 2006. The 2022 interim financial report has not
been audited.
The Annual Report and Financial Statements for 2021 have been
filed with the Registrar of Companies. The Independent Auditors'
Report on the Annual Report and Financial Statement for 2021 was
unqualified and did not contain a statement under 498(2) or 498(3)
of the Companies Act 2006.
The interim results were approved by the Board of Directors on
27 June 2022.
(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 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 2021.
(c) Going concern
The interim financial report has been prepared on a going
concern basis. Although the Group's assets are not generating
revenues, the Directors believe, having considered all available
information, including the Company's proven ability to raise
further equity funds from its supportive shareholder base, that the
Group will have sufficient funds to meet its expected committed and
contractual expenditure for the foreseeable future. Thus, the
Directors continue to adopt the going concern basis of accounting
in preparing the interim financial report for the period ended 31
March 2022.
3. Significant accounting policies
The accounting policies applied by the Group in this
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 2021.
4. Loss per share
Basic loss per share
The calculation of basic loss per share is based on the loss
attributable to ordinary shareholders of the parent of GBP1,691,000
(2021: GBP589,000), and a weighted average number of ordinary
shares in issue of 1,404,603,204 (2021: 896,967,375).
5. Issues of Equity
In October 2021, 15,578,947 shares were issued in relation to
warrant exercises; 10,000,000 were exercised at a price of 1.0
pence per share, 1,578,947 were exercised at a price of 0.75 pence
per share and 4,000,000 were exercised at a price of 0.70 pence per
share.
On 1 November 2021, the company issued 13,333,333 new ordinary
shares at a price of 2.75 pence per share, for the initial
consideration of the acquisition of FDR Australia and the Wallal
Main Licence, and a further 10,000,000 new ordinary shares at a
price of 3.2 pence per share for the acquisition of all other FDR
Australia interests, to be transferred into FDR Australia.
In November 2021, 1,500,000 shares were issued in relation to
warrant exercises; all of which were exercised at a price of 0.70
pence per share.
On 10 November 2021, the company issued 48,118,920 new ordinary
shares in at an issue price of 2.5 pence per share, to Thor Mining
Plc for the acquisition of the Pilot Mountain project in Nevada,
held by Golden Metal Resources Plc.
In November 2021, the Company announced it had raised
GBP1,050,000 through the issue of 60,000,000 new ordinary shares of
0.1 pence each at an issue price of 1.75 pence per share, to enable
the Company to accelerate business operations including strategic
exploration activities and corporate opportunities. Each share had
an attaching warrant to subscribe for a further new ordinary share
of 0.1 pence each, at an exercise price of 3.5 pence each with a
two-year term from the admission of the 60,000,000 placing
shares.
In December 2021, 38,500,000 shares were issued in relation to
warrant exercises; all of which were exercised at a price of 0.70
pence per share.
On 19 January 2022 the company issued 2,499,999 new ordinary
shares to acquire two prospecting licences comprising the Tati
Project, held by Tati Greenstone Resources Pty Ltd (a subsidiary of
the Company), at a price of 3.0 pence per share.
On 31 January 2022, the company issued 4,000,000 new ordinary
shares to Thor Mining Plc an issue price of 2.5 pence per share, in
respect of early clearance of the tail benefit held by Thor Mining
Plc on the Pilot Mountain Project Nevada.
In February 2022, 16,113,929 shares were issued in relation to
warrant exercises; 11,113,929 were exercised at a price of 1.0
pence per share and 5,000,000 were exercised at a price of 0.75
pence per share.
On 3 February 2022 2,500,000 shares were issues in relation to
option exercises; all of which were exercised at a price of 1.0
pence per share.
At the period end, the Company had 1,466,953,915 Ordinary Shares
in issue (30 September 2021: 1,254,808,787).
At the date of this interim report, the Company had
1,477,694,056 Ordinary Shares in issue.
**Ends**
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