REG - Thor Energy PLC - Half-year Report
05/03/2024 07:00
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RNS Number : 5490F Thor Energy PLC 05 March 2024
5 March 2023
Thor Energy PLC
("Thor" or the "Company")
Half-year report
The Directors of Thor Energy plc (AIM, ASX: THR) are pleased to announce the
Company's results for the six months ended 31 December 2023.
The Company's Half Year Report was also lodged with the Australian Stock
Exchange ("ASX") as required under the listing rules of the ASX. A copy of
the Half Year Report is available on the Company's website:
https://thorenergyplc.com/ (https://thorenergyplc.com/) .
Half-year Report
For the six months ended
31 December 2023
Drilling at Section 23, Wedding Bell Uranium Project, USA
Nicole Galloway Warland, Managing Director of Thor Energy, commented:
"After ending the year with consistent high-grade uranium results from our
2023 drilling program, we are optimistic about our 2024 drilling programs as
we continue to strategically position our portfolio towards advancing our
'green energy' projects in the US.
"Uranium prices throughout the second half of 2023 performed well, supported
by strong supply and demand fundamentals. This resulted in uranium breaking
the resistance level of $100/lb in early 2024, recording a 16-year high and
remaining above $100/lb. Looking ahead, the US Government announced plans to
invest up to US$500m to help develop a secure domestic supply of nuclear
energy fuel, as we mentioned in our Q4 2023 Quarterly Activities Report.
"Regarding our Australian portfolio, we advanced the In-Situ Recovery
assessment of the Alford East Copper-REE-Gold Project, with reported
favourable copper recoveries of up to 72.2%, performing above the 60%-70%
usually expected for an In-Situ Recovery operation. Thor is constantly
assessing its ESG practice and used Glyleach(TM) during the ISR assessment
process as it is considered both environmentally friendly and more economical
compared to the traditional lixiviant of sulphuric acid.
"Another successful venture accomplished in the second half of 2023 was to
amalgamate Thor's 3D geological model with the new Ambient Noise Tomography 3D
model through our collaborative partnership with Fleet Space Technologies on
our Alford East Copper-REE Project. Thor is currently working on the resultant
3D model and expects it to be completed by the end of Q1 2024. This work will
generate an improved geological model for drill targeting extensions and
potential higher-grade copper zones within the Alford Copper Belt.
"EnviroCopper Limited, of which Thor owned 30% at the beginning of H2 2023,
engaged with multiple parties over the second half of the calendar year. After
multiple agreements were signed off, Thor's ownership was diluted to 26.3%.
These investments will further support ECL's mission to develop smarter,
lower-cost, and environmentally friendly copper projects, and will help energy
metals be extracted in the most sustainable way possible. With in-ground
lixiviant trials now underway at Kapunda, we are pleased with the progress
being made, especially after the Government of South Australia awarded a key
environmental approval to advance the Kapunda Copper ISR Project.
"The Company decided to divest its assets at Ragged Range as it seeks to drive
ahead and focus on progress made on our US Uranium assets, Wedding Bell,
Radium Mountain, and Vanadium King.
"With a strong pipeline of news flow expected for the coming months and
project milestones across the portfolio, we anticipate 2024 to provide
significant progress in our key assets and we will provide further updates in
due course."
HIGHLIGHTS
Uranium & Vanadium
Thor is encouraged by the growth opportunities in the uranium sector, with the
uranium spot price breaking through US$100/lb, reaching a 16-year high in
December 2023; supported by strong supply and demand fundamentals, climate
change initiatives and the US Government investing up to US$500m to develop
domestic supply of nuclear energy fuel from uranium.
Thor reaffirmed its strategic focus on uranium and commitment to advancing its
USA assets with the second phase of drilling commencing at its Colorado
Wedding Bell Project on 18 October 2023. The reverse circulation ("RC") drill
program comprised 23 shallow drillholes, totalling 2,737m. The program was
designed to follow up on the successful 2022 maiden program, which targeted
uranium and vanadium mineralisation within the prospective Salt Wash Member of
the Morrison Formation, in the Uravan Mineral Belt.
The program identified the prospectivity of the Project, with shallow, uranium
mineralisation intersected in all holes drilled at Section 23, Rim Rock Mine
and Groundhog Mine, with high-grade uranium up to 6885ppm (0.69%) eU(3)O(8)
intercepted (23WBRA020).
Copper-Gold
During November 2023, Thor fulfilled its Stage 2 expenditure obligations at
the Alford East Copper-Gold-REE Project. Completing Stage 2 of the Earn-In
entitled Thor to increase its interest from 51% to 80% in the copper oxide
mineral rights from Spencer Metals Pty Ltd ("Spencer").
Ambient Noise Tomography ("ANT") surveys incorporating Fleet's EXOSPHERE BY
FLEET® technology were completed in collaboration with Fleet Space
Technologies over the north portion of the Alford East Project area. The
preliminary 3D ANT model highlights low-velocity zones, representing deep
structural troughs hosting copper-REE-gold mineralisation within the Alford
Copper Belt.
As part of the In-Situ Copper Recovery ("ISCR") assessment process,
hydrometallurgical mini-column test work was completed. The results returned
favourable copper recoveries of up to 72.2%, significantly above the standard
range of 60-70% for an ISCR operation.
Thor used Glyleach(TM) lixiviant during hydrometallurgical work, which is
economical and environmentally friendly compared to the traditional lixiviant
of sulphuric acid, helping Thor to develop a low-cost, low-environmental
footprint for a potential ISCR operation.
Another significant highlight was the multiple parties EnviroCopper Ltd
("ECL") engaged with during December 2023, with Thor now holding 26.3%
interest in ECL. ECL received an initial A$0.9m investment from Alligator
Energy, along with an agreement with Andromeda Metals to acquire the Alford
West EL 5984 tenement. Thor's investment into ECL is looking promising, with
in-ground lixiviant trials now underway at Kapunda and copper recoveries to be
reported in 2024.
OUTLOOK FOR 2024
Uranium & Vanadium
Consistent high-grade uranium results from the 2023 drilling program
highlights the significant potential and growth opportunities of the Wedding
Bell and Radium Mountain uranium projects, Colorado. Thor is now preparing for
the 2024 drilling programs, including resource drilling, and continuing
brownfields exploration as it awaits assay results from the highly prospective
projects.
In addition, maiden drilling is planned for the Vanadium King Project, Utah.
Copper
At Alford East, Thor is continuing to build on the 3D geological and
mineralisation model, integrating Fleet's ANT seismic velocity data. The
resultant 3D model aims to highlight low-velocity drill targets, which
potentially represent higher-grade copper-REE-Gold targets, associated with
deep structurally controlled troughs.
ECL will complete the lixiviant Push/Pull phase of the Site Environment
Lixiviant Trials ("SELT") at Kapunda.
REVIEW OF OPERATIONS
Uranium & Vanadium Projects (Colorado & Utah USA) (100% Thor)
The 2023 RC drilling program at the Wedding Bell and Radium Mountain Projects
in Colorado, successfully identified shallow, uranium mineralisation (visual
geological logging and downhole gamma) in all holes drilled at Section 23, Rim
Rock Mine and Groundhog Mine.
Significant uranium downhole gamma results above 2000ppm (0.2%) eU3O8 include:
§ 23WBRA020 0.9m @ 6885ppm (0.69 %) eU3O8 from
82.66m
§ 23WBRA019 0.3m @ 3362ppm (0.34 %) eU3O8 from
90.22m
§ 23WBRA011 0.5m @ 3186ppm (0.32 %) eU3O8 from
76.2m
§ 23WBRA016 0.8m @ 1954ppm (0.20%) eU3O8 from
67.4m
Samples from anomalous zones in each drillhole are now at Australian
Laboratory Services ("ALS") in Canada for full geochemical analysis including
uranium and vanadium assays.
Preparations are already underway for the 2024 drilling program; including
infill and extension drilling at Rim Rock and Groundhog mine areas, continuing
brownfield exploration drilling across tenure and the maiden drilling planned
for Vanadium King Project, Utah.
Copper Portfolio (South Australia)
Alford East
During the reporting period, Thor fulfilled its Stage 2 expenditure
obligations increasing its interest from 51% to 80% in the copper oxide
mineral rights from Spencer (ASX/AIM: 3 November 2023).
Two comprehensive ANT surveys were executed at the Alford East Project,
covering the northern portion of the Mineral Resource Estimate ("MRE")
domains. The surveys were designed to delineate the low-velocity, weathered
'troughs' that are known to host the oxide copper-gold and REE mineralisation
within the Alford Copper Belt. The oxide copper-gold and REE mineralisation
within the Alford Copper Belt is associated with rocks that are significantly
less dense with lower seismic velocity than the surrounding fresh units.
The surveys referred to as the East and West field surveys used a total of 96
Fleet's space-enabled geodes for each deployment. These surveys covered
substantial areas, encompassing 1.13 square kilometres.
The data collected from these two surveys was subject to extensive processing,
leading to the development of a high-resolution 3D seismic velocity model of
the subsurface. This model has revealed key features, such as regions with
slower velocity within a high-velocity basement, inferring a 3D geometry of
the interpreted variably weathered trough and a sheared metasedimentary
basement. This model is now being merged with Thor's geological and
mineralisation model.
Thor engaged Draslovka to undertake a program of work to evaluate Draslovka's
GlyLeach(TM) process, focusing on copper extraction from a 7.3m intersection
selected from drillhole 21AED005. This sample was selected as representative
of copper oxide mineralisation within Mineral Resource Estimate Domain Area 5
(MRE 5) from Thor's 2021 drill program (ASX/AIM: 26 April 2023).
The metallurgical test work included a copper sequential analysis, Diagnostic
Leach Tests ("DLT") (ASX/AIM: 22 February 2022) and Mini Column Leach Tests
("MCLT") on the sample provided. This test work determines which copper
species can be leached by different solutions.
Based on the copper sequential analysis conducted by ALS Drasloka, it was
anticipated the GlyLeach(TM) process is likely to leach all the
cyanide-soluble copper, a major portion (20-80%) of the acid-soluble copper
and minor amount (<10%) of silicate locked copper (ASX/AIM: 11 December
2023).
GlyLeach(TM) is an environmentally benign, hydrometallurgical process that can
leach copper, nickel, cobalt and zinc from oxide, mixed oxide and supergene
ores, and even primary sulphide ores. In the right conditions, it can also
leach gold. Glycine is the simplest amino acid and is available in bulk
quantities. Its unique properties can offer substantial advantages over
conventional lixiviants.
MCLT was undertaken by Drasloka, designed to give a preliminary indication of
extractions for typical heap or ISR conditions at Alford East. The test work
demonstrates GlyLeach(TM) ability to recover copper with excellent recoveries,
up to 72.2%.
GlyLeach(TM) ability to recover copper with good recoveries, up to 72.2%,
exceeds the traditional findings of 60-70% for ISR operations. Based on CAPEX
and OPEX costs, recovering metal in an ISR operation in comparison to
conventional mining (open cut or underground operation) enables lower metal
recoveries whilst maintaining equal or similar profit margins.
EnviroCopper Limited
ECL and Andromeda Metals Ltd ("Andromeda") signed an agreement in December
2023, whereby ECL acquired the Exploration Licence 5984 on the Yorke Peninsula
which covers the Alford West Project.
Agreement Highlights (AIM/ASX: 18 December 2023):
§ Consolidation of the Alford West Joint Venture ("JV") (In-Situ Recovery JV)
and other ISR amenable targets within Exploration Licence 5984 with 100% of
the ownership transferring to ECL
§ Andromeda received 5% of the current ECL capitalisation (203,008 shares),
plus A$50,000 in cash
§ Andromeda received deferred consideration as a 10% share of any successful
mining operations 'Royalty Tenement Operating Cashflow' on the Alford West
Project area (not exceeding A$15m) and Moonta Project area (not exceeding
A$15m)
§ Upon successful completion of a SELT, Andromeda will be issued a further
2.5% of ECL capitalisation (101,504 shares)
§ Once a mining lease is granted, Andromeda will receive a further cash
payment of A$150,000 with royalty payments from operating cash flow
§ Alligator Energy Limited ("Alligator") made a strategic investment into ECL
to further develop ISR copper projects (AIM/ASX: 18 December 2023)
§ Alligator paid an initial investment of A$0.9m for 7.8% of ECL, with the
exclusive option to make further staged strategic investments to increase its
ownership in ECL to 50.1%
§ ECL is currently advancing ISR trials for environmentally sustainable
copper extraction at its flagship Kapunda copper project and has similar plans
at its Alford West copper project to help meet copper demand for the green
energy transition
§ BHP Ltd (previously OZ Minerals) continues to fund part of ECL's field
investigations, including a SELT of Copper ISR at Kapunda (AIM/ASX: 9 August
2022)
Following the ECL dealings, Thor holds a 26.3% equity interest in ECL.
Kapunda
The first phase of the SELT is underway, involving mixing a biodegradable
solution called lixiviant, with groundwater for placement within the copper
orebody. The lixiviant will reside in-situ for a period while being sampled
and monitored, the copper lixiviant will then be extracted, and the site
rehabilitated.
The results are anticipated in early 2024.
Ragged Range Gold, Lithium, Nickel, Copper-Gold Project (Pilbara, Western
Australia) (100% Thor)
Thor holds a 100% interest in five granted tenements in the Pilbara region of
Western Australia, approximately 40km west of the township of Nullagine.
As Thor focuses on its uranium and energy metal projects, a divestment or
joint venture partner is being sought for the Ragged Range Project. This
project has potential for gold, copper-gold, lithium, and nickel. With the
change in focus towards critical minerals in the energy and green economy,
this group of tenements is no longer considered core in Thor's exploration
portfolio.
There remains significant market interest in this project.
Molyhil Tungsten/Molybdenum project (Northern Territory, Australia) (100%
Thor)
The Molyhil project is located 220km northeast of Alice Springs.
On 24 November 2022, Thor announced the signing, through its wholly owned
subsidiary Molyhil Mining Pty Ltd ("Molyhil"), of a Heads of Agreement with
ASX-listed mineral exploration and development company Investigator Resources
Limited (ASX: IVR, "IVR"). The agreement will fund the accelerated exploration
of Thor's 100%-owned Molyhil tenements (the "Tenements"), in the Northern
Territory and the sale of Thor's interest in the Bonya tenement (EL29701).
The Earn-in/JV Agreement to the value of A$8M is via a 3-stage process, to
earn 80% interest in the Tenements and acquire Thor's 40% interest in the
Bonya tenement (EL29701). In late 2023, IVR carried out a 12-hole drilling
program at Molyhil Project to verify and update the MRE; assays are
anticipated in February 2024 (ASX/AIM: 9 November 2023).
Bonya (Tungsten, Copper, Vanadium) (40% Thor)
The Bonya project comprising EL29701 and EL 32167, sits approximately 30km
east of Molyhil, holding tungsten and copper resources, which are expected to
complement the Molyhil project. Thor, in joint venture with Arafura, holds 40%
equity interest in the resources.
Thor's interest in the Bonya tenement EL29701 is planned to be divested as
part of the Farm-in and Funding agreement with IVR.
CORPORATE
Following shareholder approval on 23 August 2023, the Company implemented a
share capital consolidation for its listed securities on 31 August 2023.
Under the share capital consolidation, the Company reduced the number of its
Ordinary Shares by way of a consolidation on the basis of 10 Ordinary Shares
of 0.01p each into one new Ordinary Share of 0.1p each. Accordingly, holdings
in the Company's CDIs, quoted on the ASX, have also been reduced by way of a
consolidation on the basis of 10 CDIs into one new CDI (collectively the
"Consolidation"). Pursuant to the Consolidation, the number of options were
consolidated in the same ratio as the Ordinary Shares and the exercise price
has been amended in inverse proportion to that ratio.
Thor and Fleet have formed a collaborative partnership to accelerate mineral
exploration at Alford East Project. As part of this collaboration, Fleet
acquired equity interest in Thor via the issue of 6,250,000 Ordinary Shares on
7 September 2023 at a price of A$0.04 per Ordinary Share.
Thor completed a small strategic placement on 20 September 2023, raising gross
proceeds of A$1m via the placing of 23,809,524 Ordinary Shares, at a price of
A$0.042 per Ordinary Share. All placees received one option for each Ordinary
Share subscribed, being a total of 23,809,524 options (the "Placement
Options"). All Placement Options were issued under the existing ASX listed
options (ASX: THROD) which are exercisable at A$0.09 (9 cents) and expire in
January 2025. The placing price represented a discount of 6.67% to the last
ASX-traded price of A$0.045 on 15 September 2023 but was a 9.38% premium to
the VWAP of the last 15 trading days, prior to that date.
During the period, Thor fulfilled its Stage 2 expenditure obligations at the
Alford East Copper-Gold-REE Project. Completing Stage 2 of the earn-in,
entitled Thor to increase its interest from 51% to 80% in the copper oxide
mineral rights from Spencer. To complete its Stage 2 commitments, Thor issued
Spencer A$250,000 in fully paid Thor shares, issued at a price of A$0.027 per
share (being the 5-day ASX VWAP on the date immediately before allotment) and
18,518,520 unlisted options, exercisable at A$0.30 and an expiry date of 3
November 2028.
Comprehensive Income
The comprehensive income statement records a comprehensive loss of £2,043,000
(2022: £126,000 loss) after taking into account unrealised exchange gain of
£250,000 (2022: £118,000 loss). The loss for the period ended 31 December
2023 also included a £1,907,000 non-cash write down of the carrying value of
the Group's Ragged Range Project located in the Pilbara Region of Australia.
The write down reflects the Group's decision to focus its available resources
on its US Uranium and Alford East projects (refer to Note 3 of the financial
statements).
Nicole Galloway Warland
Managing Director
4 March 2024
For further information, please contact:
Thor Energy PLC
Nicole Galloway Warland, Managing Director Tel: +61 (8) 7324 1935
Ray Ridge, CFO / Company Secretary Tel: +61 (8) 7324 1935
WH Ireland Limited (Nominated Adviser and Joint Broker) Tel: +44 (0) 207 220 1666
Antonio Bossi / Darshan Patel / Isaac Hooper
SI Capital Limited (Joint Broker) Tel: +44 (0) 1483 413 500
Nick Emerson
Yellow Jersey (Financial PR) thor@yellowjerseypr.com
Sarah Hollins / Shivantha Thambirajah / Bessie Elliot Tel: +44 (0) 20 3004 9512
Updates on the Company's activities are regularly posted on Thor's
website www.thorEnergy.com (http://www.thormining.com/) , which includes a
facility to register to receive these updates by email, and on the Company's
twitter page @ThorEnergy.
About Thor Energy PLC
The Company is focused on uranium and energy metals that are crucial in the
shift to a 'green' energy economy. Thor has a number of highly prospective
projects that give shareholders exposure to uranium, nickel, copper, lithium
and gold. Our projects are located in Australia and the USA.
Thor holds 100% interest in three uranium and vanadium projects (Wedding Bell,
Radium Mountain and Vanadium King) in the Uravan Belt Colorado and Utah, USA
with historical high-grade uranium and vanadium drilling and production
results.
Thor owns 100% of the Ragged Range Project, comprising 92 km2 of exploration
licences with highly encouraging early-stage gold and nickel results in the
Pilbara region of Western Australia, with follow up drilling planned for 2022.
At Alford East in South Australia, Thor is earning an 80% interest in oxide
copper deposits considered amenable to extraction via In Situ Recovery
techniques (ISR). In January 2021, Thor announced an Inferred Mineral Resource
Estimate.¹ Thor also holds a 30% interest in Australian copper development
company EnviroCopper Limited, which in turn holds rights to earn up to a 75%
interest in the mineral rights and claims over the resource on the portion of
the historic Kapunda copper mine and the Alford West copper project, both
situated in South Australia, and both considered amenable to recovery by way
of ISR.(2&3)
Thor holds 100% of the advanced Molyhil tungsten project, including measured,
indicated and inferred resources⁴, in the Northern Territory of Australia,
which was awarded Major Project Status by the Northern Territory government in
July 2020. Thor executed a $8m Farm-in and Funding Agreement with Investigator
Resources Limited (ASX: IVR) to accelerate exploration at the Molyhil Project
on 24th November 2022.(6)
Adjacent to Molyhil, at Bonya, Thor holds a 40% interest in deposits of
tungsten, copper, and vanadium, including Inferred resource estimates for the
Bonya copper deposit, and the White Violet and Samarkand tungsten deposits.⁵
Thor's interest in the Bonya tenement EL29701 is planned to be divested as
part of the Farm-in and Funding agreement with Investigator Resources
Limited.(6)
Notes
(1)
https://thorenergyplc.com/investor-updates/maiden-copper-gold-mineral-resource-estimate-alford-east-copper-gold-isr-project/
(https://thorenergyplc.com/investor-updates/maiden-copper-gold-mineral-resource-estimate-alford-east-copper-gold-isr-project/)
(2)
www.thorenergyplc.com/sites/thormining/media/pdf/asx-announcements/20172018/20180222-clarification-kapunda-copper-resource-estimate.pdf
(http://www.thorenergyplc.com/sites/thormining/media/pdf/asx-announcements/20172018/20180222-clarification-kapunda-copper-resource-estimate.pdf)
³
www.thorenergyplc.com/sites/thormining/media/aim-report/20190815-initial-copper-resource-estimate---moonta-project---rns---london-stock-exchange.pdf
(http://www.thorenergyplc.com/sites/thormining/media/aim-report/20190815-initial-copper-resource-estimate---moonta-project---rns---london-stock-exchange.pdf)
(4)
https://thorenergyplc.com/investor-updates/molyhil-project-mineral-resource-estimate-updated/
(https://thorenergyplc.com/investor-updates/molyhil-project-mineral-resource-estimate-updated/)
(5)
www.thorenergyplc.com/sites/thormining/media/pdf/asx-announcements/20200129-mineral-resource-estimates---bonya-tungsten--copper.pdf
(http://www.thorenergyplc.com/sites/thormining/media/pdf/asx-announcements/20200129-mineral-resource-estimates---bonya-tungsten--copper.pdf)
(6)
https://thorenergyplc.com/wp-content/uploads/2022/11/20221124-8M-Farm-in-Funding-Agreement.pdf
(https://thorenergyplc.com/wp-content/uploads/2022/11/20221124-8M-Farm-in-Funding-Agreement.pdf)
This announcement contains inside information for the purposes of Article 7 of
the UK version of Regulation (EU) No 596/2014 which is part of UK law by
virtue of the European Union (Withdrawal) Act 2018, as amended ("MAR"). Upon
the publication of this announcement via a Regulatory Information Service,
this inside information is now considered to be in the public domain.
Competent Person's statements
The information in this report that relates to exploration results is based on
information compiled by Nicole Galloway Warland, who holds a BSc Applied
geology (HONS) and who is a Member of The Australian Institute of
Geoscientists. Ms Galloway Warland is an employee of Thor Energy PLC. She has
sufficient experience which is relevant to the style of mineralisation and
type of deposit under consideration and to the activity which she is
undertaking to qualify as a Competent Person as defined in the 2012 Edition of
the 'Australasian Code for Reporting of Exploration Results, Mineral Resources
and Ore Reserves'. Nicole Galloway Warland consents to the inclusion in the
report of the matters based on her information in the form and context in
which it appears.
The Company confirms that it is not aware of any new information or data that
materially affects the information included in the original market
announcements and, in the case of estimates of Mineral Resources or Ore
Reserves, that all material assumptions and technical parameters underpinning
the estimates in the relevant market announcement continue to apply and have
not materially changed. The Company confirms that the form and context in
which the Competent Person's findings are presented have not been materially
modified from the original market announcement.
Condensed Consolidated Statement of Comprehensive Income
For the 6 months ended 31 December 2023
Note £'000 £'000 £'000
6 months ended 6 months ended Year
31 December 2023 31 December 2022 ended
30 June
2023
Unaudited Unaudited Audited
Administrative expenses (46) (46) (146)
Corporate expenses (303) (292) (523)
Share-based payments expense 7 (14) (21) (39)
Realised gain/loss on financial assets 6 28 5
Exploration expenses - - (3)
Write off/Impairment of exploration assets 3 (1,907) - -
Operating Loss (2,264) (331) (706)
Interest received 14 - 4
Interest Paid (4) - (3)
Share of (loss)/profit of associate, accounted for using the equity method 5 (38) (38) (27)
Fair value decrement on financial assets FVTPL 134 19
-
Profit/(loss) on sale of assets (7) 166 129
Sundry income 6 61 64
Loss before Taxation (2,293) (8) (520)
Taxation - - -
Loss for the period (2,293) (8) (520)
Other comprehensive income:
Items that may be subsequently reclassified to profit or loss:
Exchange differences on translating foreign operations 250 (118) (1,057)
Other comprehensive income for the period, net of income tax 250 (118) (1,057)
Loss for the year and total comprehensive loss attributable to the equity (2,043) (126) (1,577)
holders
Basic earnings per share 2 (0.89)p (0.00)p (0.23)p
Condensed Consolidated Statement of Financial Position
For the 6 months ended 31 December 2023
Note £'000 £'000 £'000
31 December 2023 31 December 2022 30 June
2023
Unaudited Unaudited Audited
ASSETS
Non-current assets
Intangible assets (deferred exploration costs) 3 12,123 13,280 12,681
Financial assets 4 - 324 -
Investments accounted for using the equity method 5 493 547 520
Deposits to support performance bonds 101 109 105
Right of use asset 48 76 59
Plant and equipment 45 58 51
Total non-current assets 12,810 14,394 13,416
Current assets
Cash and cash equivalents 525 1,513 898
Trade receivables and other assets 76 94 35
Financial assets at fair value through profit and loss - - 124
Total current assets 601 1,607 1,057
Total assets 13,411 16,001 14,473
LIABILITIES
Current liabilities
Trade and other payables (130) (192) (115)
Employee annual leave provision (42) (38) (42)
Lease liability (26) (25) (24)
Total current liabilities (198) (255) (181)
Non-current liabilities
Lease liability (24) (51) (37)
Total non-current liabilities (24) (51) (37)
Total liabilities (222) (306) (218)
Net assets 13,189 15,695 14,255
Equity
Issued share capital 6 3,889 3,850 3,850
Share premium 28,467 27,971 27,813
Foreign exchange reserve 1,285 1,974 1,035
Merger reserve 405 405 405
Share based payments reserve 7 996 769 938
Retained earnings (21,853) (19,274) (19,786)
Total equity 13,189 15,695 14,255
Condensed Consolidated Statement of Change in Equity
For the 6 months ended 31 December 2023
£'000 £'000 £'000 £'000 £'000 £'000 £'000
Issued share capital Share premium Retained losses Foreign Currency Translation Reserve Merger Reserve Share Based Payment Reserve Total
Balance at 1 July 2022 3,812 26,632 (19,384) 2,092 405 866 14,423
Loss for the period - - (8) - - - (8)
Foreign currency translation reserve - - - (118) - - (118)
Total comprehensive loss for the period - - (8) (118) - - (126)
Transactions with owners in their capacity as owners
Shares issued 38 1,433 - - - - 1,471
Cost of shares issued - (94) - - - - (94)
Share options lapsed - - 118 - - (118) -
Share options issued - - - - - 21 21
At 31 December 2022 3,850 27,971 (19,274) 1,974 405 769 15,695
Balance at 1 July 2022 3,812 26,632 (19,384) 2,092 405 866 14,423
Loss for the period - - (520) - - - (520)
Foreign currency translation reserve - - - (1,057) - - (1,057)
Total comprehensive (loss) for the period - - (520) (1,057) - - (1,577)
Transactions with owners in their capacity as owners
Shares issued 38 1,433 - - - - 1,471
Cost of shares issued - (252) - - - - (252)
Share options exercised - - 118 - - (118) -
Share options issued - - - - - 190 190
At 30 June 2023 3,850 27,813 (19,786) 1,035 405 938 14,255
Balance at 1 July 2023 3,850 27,813 (19,786) 1,035 405 938 14,255
Loss for the period - - (2,293) - - - (2,293)
Foreign currency translation reserve - - - 250 - - 250
Total comprehensive loss for the period - - (2,293) 250 - - (2,043)
Transactions with owners in their capacity as owners
Shares issued 39 740 - - - - 779
Cost of shares issued - (86) - - - - (86)
Share options lapsed - - 226 - - (226) -
Share options issued - - - - - 284 284
At 31 December 2023 3,889 28,467 (21,853) 1,285 405 996 13,189
Condensed Consolidated Statement of Cash Flow
For the 6 months ended 31 December 2023
£'000 £'000 £'000
6 months ended 6 months ended Year
31 December 2023 31 December 2022 ended
30 June
2023
Unaudited Unaudited Audited
Cash flows from operating activities
Operating loss (2,264) (331) (706)
Sundry income 6 61 64
(Increase)/decrease in trade and other receivables (44) (16) 14
Increase/(decrease) in trade and other payables 37 20 (73)
Increase/(decrease) in provisions (1) 6 12
Depreciation 20 10 30
Exploration expenditure write off 1,907 - -
Share-based payments 14 21 39
Net cash outflow from operating activities (325) (229) (620)
Cash flows from investing activities
Interest received 14 - 4
Interest paid (4) - (3)
Payments/refunds for bonds 6 (42) (42)
Purchase of property, plant & equipment - (4) (8)
Payments for exploration expenditure (827) (1,303) (1,680)
R&D Grants for exploration expenditure 45 173 304
Proceeds from sale of assets 117 371 418
Proceeds from the sale of investments - - -
Net cash outflow from investing activities (649) (805) (1,007)
Cash flows from financing activities
Lease liability repayments (12) (2) (12)
Net issue of ordinary share capital 596 1,377 1,370
Net cash inflow from financing activities 584 1,375 1,358
Net decrease in cash and cash equivalents (390) 341 (269)
Non-cash exchange changes 17 (1) (6)
Cash and cash equivalents at beginning of period 898 1,173 1,173
Cash and cash equivalents at end of period 525 1,513 898
Notes to the Half-year Report
For the 6 months ending 31 December 2023
1. PRINCIPAL ACCOUNTING POLICIES
(a) Presentation of Half-year results
The half-year results have not been audited but were the subject of an
independent review carried out by the Company's auditors, PKF Littlejohn
LLP. Their review confirmed that the figures were prepared using applicable
accounting policies and practices consistent with those adopted in the 2023
annual report and to be adopted in the 2024 annual report. The financial
information contained in this half-year report does not constitute statutory
accounts as defined by Section 435 of the Companies Act 2006.
The half-year report has been prepared under the historical cost convention.
The Directors acknowledge their responsibility for the half-year report and
confirm that, to the best of their knowledge, the interim consolidated
financial statements for the six months ended 31 December 2023 have been
prepared in accordance with UK adopted international accounting standards,
including IAS 34 "Interim Financial Statements", and complies with the
requirements for companies with securities admitted to trading on the AIM
Market of the London Stock Exchange. This half-year report does not include
all the notes of the type normally included in an annual financial report.
Accordingly, this report should be read in conjunction with the annual report
for the year ended 30 June 2023.
The Directors are of the opinion that on-going evaluations of the Company's
interests indicate that preparation of the accounts on a going concern basis
is appropriate but that a material uncertainty with respect to going concern
exists. Refer Note 10 for further information.
(b) Basis of consolidation
The consolidated financial statements comprise the financial statements of
Thor Energy PLC and its controlled entities. The financial statements of
controlled entities are included in the consolidated financial statements from
the date control commences until the date control ceases. All inter-company
balances and transactions have been eliminated in full.
The financial statements of subsidiaries are prepared for the same reporting
period as the parent Company, using consistent accounting policies.
(c) Investments in Associates
Investments in associate companies are recognised in the financial statements
by applying the equity method of accounting. The equity method of accounting
recognises the Group's share of post-acquisition reserves of its associates.
Where there has been a change recognised directly in an associate's equity,
the Group recognises its share of any changes and discloses this in the
statement of profit of loss and other comprehensive income. The reporting
dates of the associates and the Group are identical, and the associates
accounting policies conform to those used by the Group for like transactions
and events in similar circumstances.
(d) Risks and uncertainties
The Board continuously assesses and monitors the key risks of the business.
The key risks that could affect the Company's medium-term performance and the
factors that mitigate those risks have not substantially changed from those
set out in the Company's 2023 Annual Report and Financial Statements. The key
financial risks are liquidity risk, credit risk, interest rate risk and fair
value estimation.
(e) Critical accounting estimates
The preparation of condensed interim financial statements requires management
to make estimates and assumptions that affect the reported amounts of assets
and liabilities at the end of the reporting period. Significant items subject
to such estimates are set out in the Company's 2023 Annual Report and
Financial Statements. The nature and amounts of such estimates have not
changed significantly during the interim period.
Notes to the Half-year Report
For the 6 months ending 31 December 2023
2. EARNINGS PER SHARE
No diluted earnings per share is presented for the six months ended 31
December 2023 as the effect on the exercise of share options would be to
decrease the loss per share.
£'000 £'000 £'000
6 months ended 6 months ended Year
31 December 2023 31 December 2022 ended
30 June
2023
Unaudited Unaudited Audited
Loss for the period (2,293) (8) (520)
Weighted average number of Ordinary shares in issue 258,279,775 206,577,774 222,800,090
Loss per share - basic
(0.89)p (0.00)p (0.23)p
The basic loss per share is derived by dividing the loss for the period
attributable to ordinary shareholders by the weighted average number of shares
in issue. The weighted average number of shares for the both the periods
ending 30 June 2023 and 31 December 2022 have also been adjusted for the 10:1
share capital consolidation that occurred on 31 August 2023.
As the inclusions of the potential Ordinary Shares would result in a decrease
in the loss per share they are considered to be anti-dilutive and as such not
included.
3. DEFERRED EXPLORATION COSTS
£'000 £'000 £'000
31 December 2023 31 December 2022 30 June
2023
Cost Unaudited Unaudited Audited
At commencement 12,681 12,329 12,329
Net additions 743 1,062 1,305
Acquired through acquisition 367 - -
Exchange gain/(loss) 239 (111) (953)
Exploration expenditure write off (1,907) - -
At period end 12,123 13,280 12,681
Period ending 31 December 2023
The Net additions in the period of £743,000 includes £554,000 of drilling
related expenditure on its priority Uranium projects in the US. Acquired
through acquisition of £367,000 in the period relates to the issue of
securities to increase its interest from 51% to 80% in the copper oxide
mineral rights in the Alford East Copper-Gold-REE Project, having satisfied
its earn-in expenditure commitments. The securities issued comprised 9,259,260
fully paid Thor shares, issued at a price of $0.027 per share and 18,518,520
unlisted options, exercisable at $0.30 and an expiry date of 3 November 2028.
As the Group has decided to focus its available resources on its US Uranium
and Alford East projects, activity at its Ragged Range project in the Pilbara
region of Australia has been paused, whilst the Group considers alternatives
to joint venture future exploration or divest the project. Accordingly, the
Directors have decided to write down the carrying value of the Ragged Range
project by £1,907,000 to its assessed recoverable amount of £553,000. The
Directors' recoverable amount assessment is consistent with the original
acquisition value of the tenements, which is supported by the high
prospectivity of the area and limited exploration activity which did confirm
mineralisation prospective for Gold, Lithium and Nickel.
Notes to the Half-year Report
For the 6 months ending 31 December 2023
3. DEFERRED EXPLORATION COSTS (continued)
Molyhil Project Earn-in Agreement
The exploration asset at 31 December 2023 of £13,280,000 includes the
carrying value of £9,150,000 for the Molyhil Project in the Northern
Territory, Australia. Thor has a binding Heads of Agreement with a subsidiary
of ASX-listed mineral exploration and development company Investigator
Resources Limited (ASX: IVR, "IVR") which has a right to earn, via a
three-stage process, an 80% interest in the tenements.
4. FINANCIAL ASSETS £'000 £'000 £'000
31 December 2023 31 December 2022 30 June
2023
Unaudited Unaudited Audited
Investment in Power Metal Resources Plc represented by: - - 124
Current
Non-current - 324 -
- 324 124
During the period ended 31 December 2023, the Company sold its remaining
balance of 17,118,920 shares in London Stock Exchange listed Power Metal
Resources Plc for net proceeds of £117,000, realising a loss on sale of
£7,000 compared to the 30 June 2023 carrying value of £124,000.
5. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD £'000 £'000 £'000
31 December 2023 31 December 2022 30 June 2023
Unaudited Unaudited Audited
A reconciliation of the carrying amount of the investments in the company is
set out below:
EnviroCopper Limited
Conversion of loan to equity 391 391 391
Additional investment 170 170 170
Initial cost of investment 561 561 561
Cumulative share of (loss)/profit of associate, accounted for using the equity (43) (17) (6)
method
Share of foreign currency translation reserve (25) 3 35
493 547 520
At the commencement of the period ending 31 December 2023, Thor held a 30%
equity interest in private Australian company, EnviroCopper Limited ("ECL").
ECL had agreed to earn, in two stages, up to 75% of the rights over metals
which may be recovered via ISR contained in the Kapunda deposit from
Australian listed company, Terramin Australia Limited ("Terramin" ASX: "TZN"),
and rights to 75% of the Alford West copper project comprising the northern
portion of exploration licence EL5984 held by Andromeda Metals Limited (ASX:
AND, "Andromeda"). During the period, ECL signed an agreement to acquire the
remaining 25% of exploration Licence 5984 from Andromeda. As part of the
acquisition consideration, ECL issued Andromeda 203,008 ECL shares equivalent
to 5% of the current ECL capitalisation. This issue of ECL shares diluted
Thor's equity interest in ECL to 28.6%. ECL will issue a further 101,504 ECL
shares upon successful completion of a Site Environmental Lixiviant Test.
(refer AIM/ASX Announcement 18 December 2023).
Notes to the Half-year Report
For the 6 months ending 31 December 2023
5. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD (continued)
Also on 18 December 2023, Alligator Energy Limited ("Alligator") announced a
strategic investment into ECL, to fund ECL's further development of the ISR
copper projects. Alligator will make an initial investment of A$0.9m for 7.8%
of ECL, with the exclusive option to make further staged strategic investments
of up to a further A$11.7m which would increase its ownership of ECL to 50.1%.
The initial investment was completed subsequent to period end, on 25 January
2024. Following this initial investment by Alligator of A$0.9m, Thor's equity
interest in ECL was further diluted to 26.3%.
Summarised financial information for ECL
The tables below provide summarised consolidated financial information for ECL
and its wholly owned subsidiaries Environmental Copper Recovery SA Pty Ltd and
Environmental Metals Recovery Pty Ltd. The information disclosed reflects the
amounts presented in the financial statements of the relevant associate and
not Thor's share of those amounts. They have been amended to reflect
adjustments made by Thor when using the equity method, including modifications
for differences in accounting policies.
£'000 £'000 £'000
31 December 2023 31 December 2022 30 June 2023
Unaudited Unaudited Audited
Summarised balance sheet:
Current Assets
Cash and cash equivalents 194 131 384
Other current assets 60 306 32
Provision for income tax - - 169
Total current assets 254 437 585
Non-current Assets
Plant & Equipment 19 29 22
Right-of-use assets 3 19 7
Total non-current assets 22 48 29
Total assets 276 485 614
Current Liabilities
Trade and other payables 143 17 146
11 210 221
Current lease liabilities 8 11 8
Total current liabilities 162 238 375
Non-current Liabilities
Deferred tax liability 9 27 9
Non current lease liability - 8 -
Total non-current liabilities 9 35 9
Total Liabilities 171 273 384
Net Assets 105 212 230
Notes to the Half-year Report
For the 6 months ending 31 December 2023
5. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD (continued)
Summarised statement of comprehensive income:
Total income 316 118 472
Less expenses 441 245 (759)
Net profit before tax (125) (127) (287)
6. SHARE CAPITAL £'000 £'000 £'000
31 December 2023 31 December 2022 30 June 2023
Unaudited Unaudited Audited
Issued fully paid (Nominal Value)
982,870,766 'Deferred Shares' of £0.0029 each 2,850 2,850 2,850
7,928,958,483 'A Deferred Shares' of £0.000096 each 761 761 761
Ordinary shares of £0.001 each 278 239 239
3,889 3,850 3,850
Number Number Number
31 December 2023 31 December 2022 30 June 2023
Unaudited Unaudited Audited
Movement in share capital
Ordinary Shares of 0.1 pence
At commencement 2,392,912,840 2,014,341,411 2,014,341,411
Share consolidation (10:1) (1) 239,291,284 - -
Shares issued for cash (2) 30,059,524 378,571,429 378,571,429
Shares issued for asset acquisition (3) 9,259,260 - -
At period end 278,610,068 2,392,912,840 2,392,912,840
£'000 £'000 £'000
31 December 2023 31 December 2022 30 June 2023
Nominal Value Unaudited Unaudited Audited
At commencement 3,850 3,812 3,812
Issued for cash 30 38 38
Issued for asset acquisition 9 - -
At period end 3,889 3,850 3,850
1. Following shareholder approval on 23 August 2023, the Company implemented a
share capital consolidation for its listed securities on 31 August 2023. Under
the share capital consolidation, the Company reduced the number of its
Ordinary Shares by way of a consolidation on the basis of 10 Ordinary Shares
of 0.01p each into one new Ordinary Share of 0.1p each. Accordingly, holdings
in the Company's CDIs, quoted on the ASX, were also reduced by way of a
consolidation on the basis of 10 CDIs into one new CDI.
Notes to the Half-year Report
For the 6 months ending 31 December 2023
6. SHARE CAPITAL (continued)
2. Shares issued for cash during the period included:
· A small strategic placement on 28 September 2023, raising
gross proceeds of $1m via the placing of 23,809,524 Ordinary Shares, at a
price of $0.042 per Ordinary Share. All placees received one option for each
Ordinary Share subscribed, being a total of 23,809,524 options (the "Placement
Options"). All Placement Options were issued under the existing ASX listed
options (ASX: THROD) which are exercisable at AUD$0.09 (9 cents) and expire in
January 2025.
· Thor and Fleet formed a collaborative partnership to
accelerate mineral exploration at Alford East Project. As part of this
collaboration Fleet acquired equity interest in Thor via the issue of
6,250,000 Ordinary Shares on 7 September 2023 at a price of $0.04 per Ordinary
Share.
3. Thor fulfilled its Stage 2 expenditure obligations at the Alford East
Copper-Gold-REE Project. Completing Stage 2 of the earn-in entitled Thor to
increase its interest from 51% to 80% in the copper oxide mineral rights from
Spencer. To complete its Stage 2 commitments Thor issued Spencer A$250,000 in
fully paid Thor shares, issued at a price of $0.027 per share (being the 5-day
ASX VWAP on the date immediately before allotment) and 18,518,520 unlisted
options, exercisable at $0.30 and an expiry date of 3 November 2028.
7. SHARE BASED PAYMENTS RESERVE
On 31 August 2023, Thor completed a share consolidation (refer footnote 1 of
Note 6). Under the share consolidation, the number of options were also
consolidated in the same 10:1 ratio as the Ordinary Shares and the exercise
price has increased by a factor of 10.
£'000 £'000
31 December 2023 30 June 2023
Unaudited Audited
Opening balance at 1 July 938 866
Lapsed 8,333,000 @ £0.00393 - (33)
Lapsed 5,000,000 @ £0.00362 - (18)
Lapsed 22,000,000 @ £0.00306 - (67)
Issued 94,642,858 to a service provider @ £0.00160 - 151
1,440,000 ESOP options @ £0.00630 expensed over vesting period - 39
Lapsed 20,280,000 options @ £0.00156 (32) -
Lapsed 16,000,000 options @ £0.00172 (28) -
Post 31 August 2023 10:1 Consolidation
144,000 ESOP options @ £0.0630 expensed over vesting period 7 -
Lapsed 750,000 options @ £0.0509 (38) -
Lapsed 400,000 @ £0.0664 (26) -
Lapsed 2,200,000 @ £0.0466 (102) -
Issued 5,800,000 to a service provider @ £0.0060 (1) 35 -
Issued 18,518,520 for an asset acquisition @ £0.0127 (2) 235 -
Issued 3,000,000 performance shares to Directors @ £0.0365 (3) 7 -
Closing balance 996 938
Notes to the Half-year Report
For the 6 months ending 31 December 2023
7. SHARE BASED PAYMENTS RESERVE (continued)
(1 )Listed Options (ASX:THROD) issued to a broker to the capital raise
completed on 28 September 2023 (refer footnote 2 of Note 6). Valued at the
ASX closing price of A$0.006 for the options on 15 September 2023, being the
day prior to the broker placement agreement.
(2 )Unlisted options issued, together with 9,259,260 Thor shares, to
increase Thor's interest from 51% to 80% in the Alford East Copper-Gold-REE
Project. (refer Note 3 and footnote 3 of Note 6)
(3 )3,000,000 Performance shares issued to directors on 7 September 2023,
following shareholder approval on 23 August 2023. The 2,000,000 performance
shares issued to Ms Galloway Warland vest as follows: 400,000 when the ASX
traded CDI Price is $0.25 plus an additional 64,000 for each $0.01 that the
ASX traded CDI Price exceeds $0.25, to the maximum 2,000,000 Thor shares. For
the 500,000 performance shares issued to each of Messrs Clayton and McGeough,
100,000 vest to each of them when the ASX traded CDI Price is $0.025 plus an
additional 16,000 for each $0.01 that the ASX traded CDI Price exceeds $0.25,
to a maximum total of 500,000 Thor shares each. The relevant CDI Price is the
highest closing CDI price for CDIs traded on the ASX in the twelve months
prior to the relevant first, second or third anniversary of the issuance of
the Performance Shares.
Options are valued at an estimate of the cost of the services provided. Where
the fair value of the services provided cannot be estimated, the value of
listed options is based on a market observed price while the value of unlisted
options and performance shares are calculated using an appropriate option
valuation model taking into account the terms and conditions upon which the
options or performance shares are granted. The following table lists the
inputs to the model used for the options and performance shares granted as
Share Based Payments during the half year ended 31 December 2023.
1,440,000 granted under an ESOP on 17 May 2022
(144,000 post share consolidation)
Dividend yield 0.00%
Underlying Security spot price A$0.016
Exercise price A$0.025
Standard deviation of returns 128%
Risk free rate 2.51%
Expiration period 3yrs
Black Scholes valuation per option (£0.0630 post share consolidation) £0.0063
The fair value is being expensed as a share-based payment, through the
Statement of comprehensive income, over the vesting periods, as follows:
One third of the options vested immediately and were fully expensed when
granted.
One third of the options vested 12 May 2023 and have been fully expensed to
that date.
One third of the options vest 12 May 2024 and are being expensed over the
vesting period to that date (the value expensed during the half year ended 31
December 2023 was £7,000).
18,518,520 granted for an asset acquisition on 3 November 2023
Dividend yield 0.00%
Underlying Security spot price A$0.0240
Exercise price A$0.300
Standard deviation of returns 115%
Risk free rate 4.36%
Expiration period 5.2yrs
Black Scholes valuation per option £0.0127
Notes to the Half-year Report
For the 6 months ending 31 December 2023
7. SHARE BASED PAYMENTS RESERVE (continued)
3,000,000 Performance rights granted to Directors on 23 August 2023
Dividend yield 0.00%
Underlying Security spot price A$0.050
Exercise price A$0.000
Standard deviation of returns 125.43%
Risk free rate 3.87%
Expiration period 3yrs
Monte Carlo Simulation valuation per option A$0.0365
The options are being expensed as a share-based payment through the Statement
of comprehensive income over their vesting periods over their three year
vesting period.
8. TURNOVER AND SEGMENTAL ANALYSIS - GROUP
Operating segments are reported in a manner consistent with the internal
reporting provided to the chief operating decision-maker. The chief operating
decision-maker, who is responsible for allocating resources and assessing
performance of the operating segments, has been identified as the Board of
Directors that makes strategic decisions.
The Group's operations are located Australia and the United States of America,
with the registered office located in the United Kingdom. The main tangible
assets of the Group, cash and cash equivalents, are held in the United States
of America and Australia. The Board ensures that adequate amounts are
transferred internally to allow all companies to carry out their operational
on a timely basis.
The Directors are of the opinion that the Group is engaged in a single segment
of business being the exploration for commodities. The Group currently has two
geographical reportable segments - United States of America and Australia.
£'000 £'000 £'000 £'000
Half Year ended 31 December 2023 Head office/ Unallocated Australia United States Consolidated
Total Segment Expenditure (157) (2,129) - (2,286)
Non-operational items (7) - - (7)
(164) (2,129) - (2,293)
Loss from Ordinary Activities before Income Tax
Income Tax Benefit/(Expense) - - - -
Retained (loss) (164) (2,129) - (2,293)
Notes to the Half-year Report
For the 6 months ending 31 December 2023
8. TURNOVER AND SEGMENTAL ANALYSIS - GROUP (continued)
As at 31 December 2023 Head office/ Unallocated Australia United States Consolidated
Assets and Liabilities
Segment assets - 11,966 1,338 13,304
Corporate assets 107 - - 107
Total Assets 107 11,966 1,338 13,411
Segment liabilities - (201) - (201)
Corporate liabilities (21) - - (21)
Total Liabilities (21) (201) - (222)
Net Assets 86 11,765 1,338 13,189
Half Year ended 31 December 2022 Head office/ Unallocated Australia United States Consolidated
Total Segment Expenditure (125) (182) (1) (308)
Non-operational items 300 - - 300
175 (182) (1) (8)
Loss from Ordinary Activities before Income Tax
Income Tax Benefit/(Expense) - - - -
Retained (loss) 175 (182) (1) (8)
£'000 £'000 £'000 £'000
As at 31 December 2022 Head office/ Unallocated Australia United States Consolidated
Assets and Liabilities
Segment assets - 13,947 613 14,560
Corporate assets 1,441 - - 1,441
Total Assets 1,441 13,947 613 16,001
Segment liabilities - (276) - (276)
Corporate liabilities (30) - - (30)
Total Liabilities (30) (276) - (306)
Net Assets 1,411 13,671 613 15,695
Notes to the Half-year Report
For the 6 months ending 31 December 2023
9. POST BALANCE SHEET EVENTS
On 25 January 2024, Alligator Energy completed its initial investment in ECL
of A$0.9m for a 7.8% interest in ECL, diluting Thor's equity interest in ECL
to 26.3% (refer Note 5).
10. GOING CONCERN BASIS OF ACCOUNTING
The financial report has been prepared on the going concern basis of
accounting.
The consolidated entity incurred a net loss before tax of £2,293,000 for the
half year ended 31 December 2023, and net cash outflows of £974,000 from
operating and investing activities. The Group is reliant upon completion of
asset sales or a capital raising to fund continued operations and the
provision of working capital.
The Group's cash flow forecast for the 12 months ending 28 February 2025,
highlight the fact that the Company is expected to continue to generate
negative cash flow over that period, inclusive of the discretionary
exploration spend. The Board of Directors are of the view that the injection
of funds into the Group during the next 12 months need to be undertaken, and
based on the history of successfully raising funds, the directors believe that
any further necessary funds will be raised in order for the Group to remain
cash positive for the whole period. If additional capital is not obtained,
the going concern basis may not be appropriate, with the result that the Group
may have to realise its assets and extinguish its liabilities, other than in
the ordinary course of business and at amounts different from those stated in
the financial report.
The Directors expect that further funds can be raised and it is appropriate to
prepare the financial statements on a going concern basis, however there can
be no certainty that any fundraise will complete. These conditions indicate
existence of a material uncertainty related to events or conditions that may
cast significant doubt about the Group's ability to continue as a going
concern, and, therefore, that it may be unable to realise its assets and
discharge its liabilities in the normal course of business. These financial
statements do not include the adjustments that would be required if the Group
could not continue as a going concern.
DIRECTORS, SECRETARY AND ADVISERS
Directors Alastair Clayton (Non-executive Chairman)
Nicole Galloway Warland (Managing Director)
Mark McGeough (Non-executive Director)
In UK In Australia
Registered Office and Directors' business address Salisbury House 6 The Parade
London Wall Norwood, South Australia
London, EC2M 5PS Australia 5067
United Kingdom
Company Secretaries Stephen Frank Ronaldson Ray Ridge
Website www.thorenergyplc.com (http://www.thorenergyplc.com) www.thoren (http://www.thorenergyplc.com) ergyplc.com
(http://www.thorenergyplc.com)
Nominated Adviser to WH Ireland Limited
the Company 24 Martin Lane
London,
EC4R 0DR
Auditors to the Company PKF Littlejohn LLP
15 Westferry Circus
Canary Wharf
London, E14 4HD
Solicitors to the Company Druces LLP
Salisbury House
London Wall
London, EC2M 5PS
United Kingdom
Registrars Computershare Investor Services Plc Computershare Investor Services Pty Ltd
The Pavilions Level 5, 115 St Grenfell St
Bridgewater Road Adelaide, South Australia 5000
Bristol BS99 6ZY
United Kingdom
INDEPENDENT REVIEW REPORT TO THOR ENERGY PLC
Conclusion
We have been engaged by the group to review the condensed set of financial statements in the half-yearly financial report for the six months ended 31 December 2023 which comprise [the consolidated statement of comprehensive income, consolidated statement of financial position, consolidated statement of changes in equity, consolidated statement of cash flow and related notes. We have read the other information contained in the half-yearly financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.
Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half-yearly financial report for the six months ended 31 December 2023 is not prepared, in all material respects, in accordance with UK adopted International Accounting Standard 34 and the AIM Rules for Companies.
Basis for conclusion
We conducted our review in accordance with International Standard on Review Engagements (UK) 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity", issued for use in the United Kingdom. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
As disclosed in note 1(a), the annual financial statements of the group are prepared in accordance with UK adopted IASs. The condensed set of financial statements included in this half-yearly financial report has been prepared in accordance with UK adopted International Accounting Standard 34, "Interim Financial Reporting".
Material uncertainty related to going concern
We draw attention to note 10 in the condensed set of financial statements of the half-yearly report, which indicates that conditions exist that may cast doubt on the group's ability to continue as a going concern. The group incurred a net loss of £2.293m, had net cash outflows from operating and investing activities of £0.974m in the period and has cash resources of £0.525m as at the period-end. Based on cash flow forecasts prepared by management, all current cash resources will be used prior to the 12 months period from the date on which these condensed set of financial statements of the financial statements of the half-yearly report are approved and thus the group will be required to raise additional funds.
As stated in note 10, these events or conditions, along with the other matters as set forth in note 10, indicate that a material uncertainty exists that may cast significant doubt on the group's ability to continue as a going concern. Our conclusion is not modified in respect of this matter.
Based on our review procedures, which are less extensive than those performed in an audit as described in the Basis for conclusion section of this report, nothing has come to our attention to suggest that management have inappropriately adopted the going concern basis of accounting.
Responsibilities of directors
The directors are responsible for preparing the half-yearly financial report in accordance with AIM Rules for Companies.
In preparing the half-yearly financial report, the directors are responsible for assessing the group's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the review of financial information
In reviewing the half-yearly report, we are responsible for expressing to the group a conclusion on the condensed set of financial statements in the half-yearly financial report. Our conclusion, including those within the Material uncertainty related to going concern paragraph, are based on procedures that are less extensive than audit procedures, as described in the Basis for conclusion paragraph of this report.
Use of our report
This report is made solely to the company's directors, as a body, in accordance with the terms of our engagement letter dated 31 December 2023. Our review has been undertaken so that we might state to the company's directors those matters we have agreed to state to them in a reviewer's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone, other than the company and the company's directors as a body, for our work, for this report, or for the conclusions we have formed.
PKF Littlejohn LLP
Statutory Auditor
15 Westferry Circus
Canary Wharf
London E14 4HD
4 March 2024
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