REG - 80 Mile PLC - Final Results for the year ended 31 December 2024
30/06/2025 16:30
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RNS Number : 0425P 80 Mile PLC 30 June 2025
30 June 2025
Final Results for the year ended 31 December 2024
80 Mile PLC ('80 Mile' or the 'Company'), the AIM, FSE, and OTC listed
exploration and development Company, is pleased to announce Final Results for
the year ended 31 December 2024.
The accounts will be distributed to shareholders today and will be available
on the Company's website shortly.
2024 Highlights
· Initiated detailed review of all projects, focusing on uncovering
previously undisclosed historical data.
· Corporate Strategy expanded to incorporate Industrial Gases and
Hydrocarbon sectors.
· Successful raise of £1.2 million through new Ordinary Share
issuance to support strategic expansion.
· Reinstatement of the 2019 Dundas Mineral Resource Estimate for
the Dundas Project.
· Identification of naturally occurring helium, hydrogen, and a
high-concentration lithium brine at Outokumpu
· Significant source rock discovery at Dundas.
· Successful raise of £1.5 million through placing to acquire a
strategic stake in Hydrogen Valley Limited in Italy, strengthening the
Company's biofuels and industrial gas capabilities.
· Acquisition of White Flame Energy and and its highly prospective
Jameson Land Basin Project, and secured extension of key exploration and
production licences in East Greenland.
· Appointed Mr. Roderick McIllree as Executive Director,
strengthening leadership for the Company's Greenland, Finland and Italy
projects.
· Discovered significant concentrations of natural hydrogen and
helium in historical drill holes at Hammaslahti
Post Period Highlights
· Update on Greenswitch Ferrandina Plant following a £8.5 million
refurbishment. The Plant has secured all required permits for a staged
restart.
· Agreed to sell Finnish subsidiary FinnAust Mining and projects to
Metals One Plc, retaining free-carried industrial gas rights and increased
Metals One equity.
· Signed heads of terms with March GL for 100% funding of Jameson
drilling in Greenland, with MGL able to earn up to 70% interest, subject to
approval.
· KoBold Metals returned its 49% interest in Disko to 80 Mile for a
2% NSR royalty, giving 80 Mile 100% ownership of the project and associated
assets, enabling a strategic reset to advance drilling.
· Agreed to sell 100% of Kangerluarsuk to Amaroq Minerals Ltd. for
up to US$2 million, including US$500,000 in Amaroq shares on completion and up
to US$1.5 million contingent on discovery.
Chairman Statement
As we reflect on 2024, I am pleased to report that the restructuring efforts
initiated upon the new management team assuming control are now delivering
tangible results. Despite a year marked by considerable financial and
operational challenges, we emerged with a clear strategic direction,
streamlined leadership, and a renewed focus on value creation.
Key achievements during the period included a successful fundraising, a
corporate rebrand to 80 Mile Plc, and a sharpened focus on industrial gases
and hydrocarbons. These steps have repositioned the Company to capitalise on
emerging opportunities in our core sectors.
Throughout 2024, we undertook a comprehensive reassessment of our portfolio
and implemented further cost-saving initiatives across the business to make
the business more sustainable. This disciplined approach has allowed us to
operate more efficiently while navigating the complex landscape that
exploration has become.
Our acquisition and divestment strategy continues to mature. The Jameson
acquisition, a world-class, hydrocarbon-bearing undrilled basin on Greenland's
east coast, is a cornerstone asset. We have since entered a joint venture on
Jameson with a consortium of American oil experts as well as realised material
returns through the sale of our stake in Metals One Plc and other non-core
assets.
At the time of writing, 80 Mile is well-capitalised, is free carried for two
3,500-metre exploration holes at Jameson, has transitioned to 100% ownership
of Nikelli and is progressing towards the restart of our biofuels facility in
Italy.
Financial Review
Entering 2025, the Comopany is in a strong financial position following the
successful monetisation of non-core assets. The sale of our Finnish projects
to AIM-listed Metals One Plc returned significant value to shareholders. That
transaction included £250,000 in cash and a 10% equity interest
post-transaction. 80 Mile's existing position in Metals One Plc was
subsequently sold for approximately £2 million. This provides a robust
capital base with very limited overheads, enabling a renewed focus on
shareholder value, something that was previously hindered by previous
management legacy financial issues.
The Company's transformation is now complete. 80 Mile is lean, focused, and
aligned with long-term growth trends in industrial gases, hydrocarbons, and
biofuels. We continue to exercise prudent cash management and remain ready to
act on strategic opportunities.
Outlook
The importance of critical minerals in the global energy transition continues
to grow, and 80 Mile is strategically positioned to play a vital role. Our
operations are located in politically stable, resource-rich jurisdictions that
support commodity development, reinforcing the security of our assets and our
confidence in future success.
Partnerships remain central to our strategy. Our joint venture at Jameson,
along with close collaboration with Greenlandic and Danish authorities, and
new financing relationships, all underpin the value of our project pipeline.
We are also expanding in sustainable energy. As announced in 19 December 2024
and 16 January 2025, 80 Mile acquired a 24% interest in Hydrogen Valley, a
biofuels project in Italy, with options to increase to full ownership over the
next 12 months. We expect operations at the plant to recommence shortly.
These developments underscore our long-term strategy: delivering value through
a diversified portfolio in energy and industrial gas markets. With rising
global demand for helium and industrial gases across healthcare, aerospace,
and clean energy, 80 Mile is positioned to benefit significantly.
On behalf of the Board, I sincerely thank our shareholders for their trust and
support. In a world increasingly shaped by geopolitical volatility and
resource nationalism, we remain focused on building long-term value. With a
dedicated team and a clear strategy, we look forward to a productive and
transformative 2025.
Michael Hutchinson
Non-Executive Chairman
30 June 2025
Statement of Financial Position
As at 31 December 2024
Group Company
Note 31 December 2024 31 December 2023 31 December 2024 31 December 2023
£ £ £ £
Non-Current Assets
Property, plant and equipment 6 1,051,935 1,425,326 3,151 22,101
Intangible assets 7 25,587,568 31,237,336 - -
Fair value through profit and loss Equity Investments 8 265,625 1,656,250 265,625 1,656,250
Investment in subsidiaries 9 - - 38,984,436 42,558,878
Equity Investments 31 200,000 - 200,000 -
Investment in Joint Venture 10 4,523,897 4,740,705 - -
Loan issuance 29 3,180 - 3,180 -
31,632,205 39,059,617 39,456,392 44,237,229
Current Assets
Trade and other receivables 11 1,883,923 1,260,237 1,877,786 1,532,369
Cash and cash equivalents 12 637,822 200,700 392,147 17,550
2,521,745 1,460,937 2,269,933 1,549,919
Total Assets 34,153,950 40,520,554 41,726,325 45,787,148
Non-Current Liabilities
Deferred tax liabilities 13 496,045 496,045 - -
496,045 496,045 - -
Current Liabilities
Provision 14 200,000 - 200,000 -
Trade and other payables 15 491,305 647,882 437,962 521,285
691,305 647,882 637,962 521,285
Total Liabilities 1,187,350 1,143,927 637,962 521,285
Net Assets 32,966,600 39,376,627 41,088,363 45,265,863
Equity attributable to owners of the Parent
Share capital 16 7,651,735 7,506,658 7,651,735 7,506,658
Share premium 16 66,986,078 62,915,685 66,986,078 62,915,685
Other reserves 17 (7,592,921) (6,528,838) 1,527,291 1,215,519
Retained losses (34,078,292) (24,516,878) (35,076,741) (26,371,999)
Total Equity 32,966,600 39,376,627 41,088,363 45,265,863
The Company has elected to take the exemption under Section 408 of the
Companies Act 2006 from presenting the Parent Company Income Statement and
Statement of Comprehensive Income. The loss for the Company for the year ended
31 December 2024 was £8,704,742 (loss for year ended 31 December 2023:
£1,023,812).
The Financial Statements were approved and authorised for issue by the Board
of Directors on 30 June 2025 and were signed on its behalf by:
Michael Hutchinson
Non-Executive Chairman
Continued operations Note Year ended 31 December Year ended 31 December
2024 2023
£ £
Revenue - -
Cost of sales 20 (35,887) (213,523)
Gross profit (35,887) (213,523)
Administrative expenses 20 (2,262,385) (1,629,273)
Impairment of intangible assets 7 (4,902,058) (3,535,254)
Share of losses from joint venture 10 (18,114) (13,779)
(Decrease) / Increase in share of net assets on joint venture 10 (198,694) 283,697
Other (losses) / gains 23 (2,259,088) 2,962,769
Foreign exchange loss (369) (53,318)
Operating loss (9,676,595) (2,198,681)
Finance (expense) / income 24 (1,663) 7,039
Other income 25 116,844 320,925
Loss before income tax (9,561,414) (1,870,717)
Tax credit 26 - 61,343
Loss for the year attributable to owners of the Parent (9,561,414) (1,809,374)
Basic and Diluted Earnings Per Share attributable to owners of the Parent 27 (0.57)p (0.16)p
during the period (expressed in pence per share)
Year ended 31 December 2024 Year ended 31 December 2023
£ £
Loss for the year (9,561,414) (1,809,374)
Other Comprehensive Income:
Items that may be subsequently reclassified to profit or loss
Currency translation differences (1,375,855) (731,885)
Other comprehensive (losses)/income for the year, net of tax (10,937,269) (2,541,259)
Total comprehensive (losses)/income attributable to owners of the Parent (10,937,269) (2,541,259)
Note Share capital Share premium Other reserves Retained losses Total
£ £ £ £ £
Balance as at 1 January 2023 7,492,041 60,903,995 (5,635,169) (22,749,860) 40,011,007
Loss for the year - - - (1,809,374) (1,809,374)
Other comprehensive income for the year
Items that may be subsequently reclassified to profit or loss
Currency translation differences - - (731,885) - (731,885)
Total comprehensive income for the year - - (731,885) (1,809,374) (2,541,259)
Issue of share capital 16 14,180 1,822,127 - - 1,836,307
Share based payments 16 437 189,563 - - 190,000
Expired options 19 - - (161,784) 42,356 (119,428)
Total transactions with owners, recognised directly in equity 14,617 2,011,690 (161,784) 42,356 1,906,879
Balance as at 31 December 2023 7,506,658 62,915,685 (6,528,838) (24,516,878) 39,376,627
Balance as at 1 January 2024 7,506,658 62,915,685 (6,528,838) (24,516,878) 39,376,627
Loss for the year - - - (9,561,414) (9,561,414)
Other comprehensive income for the year
Items that may be subsequently reclassified to profit or loss
Currency translation differences - - (1,375,855) - (1,375,855)
Total comprehensive income for the year - - (1,375,855) (9,561,414) (10,937,269)
Issue of share capital 16 144,059 3,999,742 - - 4,143,801
Share based payments 16 1,018 70,651 - - 71,669
Options issued 19 - - 311,772 - 311,772
Total transactions with owners, recognised directly in equity 145,077 4,070,393 311,772 - 4,527,242
Balance as at 31 December 2024 7,651,735 66,986,078 (7,592,921) (34,078,292) 32,966,600
Note Share capital Share premium Other reserves Retained losses Total equity
£ £ £ £ £
Balance as at 1 January 2023 7,492,041 60,903,995 1,377,303 (25,390,543) 44,382,796
Loss for the year - - - (1,023,812) (1,023,812)
Total comprehensive income for the year - - - (1,023,812) (1,023,812)
Issue of share capital 16 14,180 1,822,127 - - 1,836,307
Share based payments 19 437 189,563 - - 190,000
Expired options 19 - - (161,784) 42,356 (119,428)
Total transactions with owners, recognised directly in equity 14,617 2,011,690 (161,784) 42,356 1,906,879
Balance as at 31 December 2023 7,506,658 62,915,685 1,215,519 (26,371,999) 45,265,863
Balance as at 1 January 2024 7,506,658 62,915,685 1,215,519 (26,371,999) 45,265,863
Loss for the year - - - (8,704,742) (8,704,742)
Total comprehensive income for the year - - - (8,704,742) (8,704,742)
Issue of share capital 16 144,059 3,999,742 - - 4,143,801
Share based payments 19 1,018 70,651 - - 71,669
Options granted 19 - - 311,772 - 311,772
Total transactions with owners, recognised directly in equity 145,077 4,070,393 311,772 - 4,527,242
Balance as at 31 December 2024 7,651,735 66,986,078 1,527,291 (35,076,741) 41,088,363
Group Company
Note Year ended Year ended Year ended 31 December 2024 Year ended 31 December 2023
31 December 2024 31 December 2023 £ £
£ £
Cash flows from operating activities
Loss after income tax (9,561,414) (1,809,374) (8,704,742) (1,023,812)
Adjustments for:
Depreciation 317,536 349,792 10,189 15,401
(Gain)/Loss on sale of property plant and equipment (5,966) (20,291) 2,503 2,153
Gain on sale of investment - (4,298,312) - -
Impairment of deferred consideration 11 915,000 - 915,000 -
Impairment of intercompany loan - - 5,278,656 -
Impairment of Asset 7 4,902,058 3,535,254 - -
Share options expense 19 311,772 - 311,772 -
Share options forfeited 19 - (119,428) - (119,428)
Share based payments 16 71,669 190,000 71,669 190,000
Intercompany management fees - - (217,552) (504,353)
Share of losses from joint venture 10 18,114 13,779 - -
(Decrease) / Increase in share of net asset of joint venture 10 198,694 (283,697) - -
Net finance expense / (income) 24 1,663 (7,039) (2,230,349) (2,207,337)
Foreign exchange (gain) / loss - (40,642) 1,719,896 900,461
Gain on fair value through profit and loss Equity Investments 8 1,390,625 1,468,750 1,390,625 1,468,750
R&D provision for prior year 26 - (61,343) - (61,343)
Proceeds from R&D tax credits 26 - 61,343 - 61,343
Changes in working capital:
Increase in provisions 200,000 - 200,000 -
(Increase) / Decrease in trade and other receivables (1,544,496) 829,891 (980,708) 311,345
(Decrease) / Increase in trade and other payables (247,817) 123,606 (230,905) 250,395
Net cash used in operating activities (3,032,562) (67,711) (2,463,946) (716,425)
Cash flows from investing activities
Cash paid for acquisitions (200,000) - (200,000) -
Purchase of property plant and equipment - (101,240) - (13,425)
Sale of investment - 50,000 - -
Reclassification of restricted cash 12 220,822 - - -
Sale of property, plant and equipment 14,727 30,808 6,258 -
Cash disposed of in sale of subsidiary - (7,095) - -
Purchase of intangible assets 7 (792,952) (3,582,956) - -
Interest received 5,619 9,367 4,655 5,877
Net loans granted to subsidiary undertakings - - (1,201,467) (2,500,851)
Net loans granted to non-group undertakings (3,180) - (3,180) -
Net cash used in investing activities (754,964) (3,601,116) (1,393,734) (2,508,399)
Cash flows from financing activities
Net proceeds from issue of share capital 4,292,097 1,836,308 4,292,097 1,836,308
Transaction costs of share issue (57,060) - (57,060) -
Proceeds from convertible loan notes - 1,641,836 - 1,641,836
Repayment of convertible loan notes - (1,601,973) - (1,601,973)
Interest paid (7,207) (450) (2,760) (366)
Net cash generated from financing activities 4,227,830 1,875,721 4,232,277 1,875,805
Net increase / (decrease) in cash and cash equivalents 440,304 (1,793,106) 374,597 (1,349,019)
Cash and cash equivalents at beginning of year 200,700 1,996,957 17,550 1,366,569
Exchange gain on cash and cash equivalents (3,182) (3,151) - -
Cash and cash equivalents at end of year 637,822 200,700 392,147 17,550
1. General information
The principal activities of 80 Mile Plc, formerly Bluejay Mining Plc, (the
'Company') and its subsidiaries (together the 'Group') are the exploration and
development of precious and base metals, helium, industrial gases, and
hydrocarbons. The Company's shares are listed on the AIM market of the London
Stock Exchange and are traded on the open market of the Frankfurt Stock
Exchange, as well as the OTC PINK in the US. The Company is incorporated and
domiciled in England.
The registered office address is 6 Heddon Street, London W1B 4BT.
2. Summary of significant Accounting Policies
The principal Accounting Policies applied in the preparation of these
Consolidated Financial Statements are set out below. These Policies have been
consistently applied to all the periods presented, unless otherwise stated.
2.1. Basis of preparation of Financial Statements
The Group and Company Financial Statements have been prepared in accordance
with UK-adopted International Accounting Standards (UK adopted IAS) in
accordance with the requirements of the Companies Act 2006. The Consolidated
Financial Statements have also been prepared under the historical cost
convention, except as modified for assets and liabilities recognised at fair
value on business combination.
The Financial Statements are presented in Pound Sterling rounded to the
nearest pound.
The preparation of financial statements in conformity with UK-adopted IAS
requires the use of certain critical accounting estimates. It also requires
management to exercise its judgement in the process of applying the Accounting
Policies. The areas involving a higher degree of judgement or complexity, or
areas where assumptions and estimates are significant to the Consolidated
Financial Statements are disclosed in Note 4.
2.2. New and amended standards
i) New and amended standards mandatory for the first time for the financial
periods beginning on or after 1 January 2024
The International Accounting Standards Board (IASB) issued various amendments
and revisions to International Financial
Reporting Standards and IFRIC interpretations. The amendments and revisions
applicable for the period ended 31 December
2024 did not result in any material changes to the financial statements of the
Group or Company.
ii) New standards, amendments and interpretations in issue but not yet
effective or not yet endorsed and not early adopted
Standards, amendments and interpretations that are not yet effective and have
not been early adopted are as follows:
Standard Impact on initial application Effective date
IAS 21 (Amendments) Lack of Exchangeability: The effects of changes in foreign exchange rates 1 January 2025
The Group is evaluating the impact of the new and amended standards above
which are not expected to have a material impact on the Group's results or
shareholders' funds
2.3. Basis of Consolidation
The Consolidated Financial Statements comprise the financial statements of the
Company and its subsidiaries made up to 31 December 2024. Control is achieved
when the Group is exposed, or has rights, to variable returns from its
involvement with the investee and has the ability to affect those returns
through its power over the investee.
Generally, there is a presumption that a majority of voting rights result in
control. To support this presumption and when the Group has less than a
majority of the voting or similar rights of an investee, the Group considers
all relevant facts and circumstances in assessing whether it has power over an
investee, including:
· The contractual arrangement with the other vote holders of the
investee;
· Rights arising from other contractual arrangements; and
· The Group's voting rights and potential voting rights
The Group re-assesses whether or not it controls an investee if facts and
circumstances indicate that there are changes to one or more of the three
elements of control.
a) Subsidiaries
Subsidiaries are entities over which the Group has control. Subsidiaries are
fully consolidated from the date on which control is transferred to the Group.
They are deconsolidated from the date that control ceases. Assets,
liabilities, income and expenses of a subsidiary acquired or disposed of
during the period are included in the consolidated financial statements from
the date the Group gains control until the date the Group ceases to control
the subsidiary.
Investments in subsidiaries are accounted for at cost less impairment within
the parent company financial statements. Where necessary, adjustments are made
to the financial statements of subsidiaries to bring the accounting policies
used in line with those used by other members of the Group. All significant
intercompany transactions and balances between Group enterprises are
eliminated on consolidation.
b) Joint Venture
A joint venture (JV) is a joint arrangement in which the parties that share
joint control have rights to the net assets of the arrangement. Joint
arrangements are accounted for using the equity method of accounting and are
initially recognised at cost. The considerations made in determining
significant influence or joint control are similar to those necessary to
determine control over subsidiaries. The aggregate of the Group's share of
profit or loss of the JV is shown on the face of the statement of profit or
loss and other comprehensive income as part of operating profit and represents
profit or loss after tax. The financial statements of the JV are prepared for
the same reporting period as the Group. When necessary, adjustments are made
to bring the accounting policies in line with those of the Group.
After application of the equity method, the Group determines whether it is
necessary to recognise an impairment loss on its investment in the JV. At each
reporting date, the Group determines whether there is objective evidence that
the investment in the JV is impaired. If there is such evidence, the Group
calculates the amount of impairment as the difference between the recoverable
amount of the JV and it's carrying value, then recognises the loss as 'Share
of profit of a joint venture' in the statement of profit or loss and other
comprehensive income.
c) Reimbursement of the costs of the operator of the joint arrangement
When the Group, acting as lead operator or manager of a joint arrangement,
receives reimbursement of direct costs recharged to the joint arrangement,
such recharges represent reimbursements of costs that the operator incurred as
an agent for the joint arrangement and therefore have no effect on profit or
loss. When the Group charges a management fee (based on a fixed percentage of
total costs incurred for the year) to cover other general costs incurred in
carrying out the activities on behalf of the joint arrangement, it is not
acting as an agent. Therefore, the general overhead expenses and the
management fees are recognised in the statement of profit or loss and other
comprehensive income as an expense and income respectively. The amount of
income does not represent revenue from contracts with customers. Instead, it
represents income
from collaborative partners and hence is outside the scope of IFRS 15.
2.4. Going concern
The Consolidated Financial Statements have been prepared on a going concern
basis. The Group's business activities, together with the factors likely to
affect its future development, performance and position are set out in the
Chairman's Statement and the Strategic Report.
As at 31 December 2024, the Group had unrestricted cash and cash equivalents
of £414,968. The Directors have prepared cash flow forecasts to 30 June 2026
which take account of the cost and operational structure of the Group and
Parent Company, planned exploration and evaluation expenditure, licence
commitments and working capital requirements. These forecasts indicate that
the Group and Parent Company's cash resources are not sufficient to cover the
projected expenditure for the period for a period of 12 months from the date
of approval of these financial statements. These forecasts indicate that the
Group and Parent Company, in order to meet their operational objectives, and
meets their expected liabilities as they fall due, will be required to raise
additional funds within the next 12 months.
In common with many exploration and evaluation entities, the Company will need
to raise further funds within the next 12 months in order to meet its expected
liabilities as they fall due, and progress the Group into definitive
feasibility and then into construction and eventual production of revenues.
The Directors are confident in the Company's ability to raise additional funds
as required, from existing and/or new investors, within the next 12 months.
The Company has demonstrated its access to financial resources, as evidenced
by the successful completion of several placings in 2024 including in a £1.2
million capital raise in January 2024, £1.75 million in August 2024 and a
further £1.5 million in December 2024, with the latter associated with the
acquisition of a strategic interest in Hydrogen Valley Ltd and its subsidiary,
Greenswitch Srl.
Given the Group and Parent Company's current cash position and its
demonstrated ability to raise capital, the Directors have a reasonable
expectation that the Group and Parent Company has adequate resources to
continue in operational existence for the foreseeable future.
Notwithstanding the above, these circumstances indicate that a material
uncertainty exists that may cast significant doubt on the Group and Parent
Company's ability to continue as a going concern and, therefore, that the
Group and Parent Company may be unable to realise their assets or settle their
liabilities in the ordinary course of business. As a result of their review,
and despite the aforementioned material uncertainty, the Directors have
confidence in the Group and Parent Company's forecasts and have a reasonable
expectation that the Group and Parent Company will continue in operational
existence for the going concern assessment period and have therefore used the
going concern basis in preparing these consolidated and Parent Company
financial statements.
2.5. Segment reporting
Operating segments are reported in a manner consistent with the internal
reporting provided to the chief operating decision-maker (CODM). The CODM, 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.
Segment results include items directly attributable to a segment as well as
those that can be allocated on a reasonable basis.
2.6. Foreign currencies
(a) Functional and presentation currency
Items included in the Financial Statements of each of the Group's entities are
measured using the currency of the primary economic environment in which the
entity operates (the 'functional currency'). The functional currency of the UK
parent entity and UK subsidiary is Pound Sterling, the functional currency of
the Finnish subsidiary is Euros and the functional currency of the Greenlandic
subsidiary is Danish Krone. The Financial Statements are presented in Pounds
Sterling which is the Company's functional and Group's presentation currency.
(b) Transactions and balances
Foreign currency transactions are translated into the functional currency
using the exchange rates prevailing at the dates of the transactions or
valuation where such items are re-measured. Foreign exchange gains and losses
resulting from the settlement of such transactions and from the translation at
period-end exchange rates of monetary assets and liabilities denominated in
foreign currencies are recognised in the income statement.
(c) Group companies
The results and financial position of all the Group entities (none of which
has the currency of a hyperinflationary economy) that have a functional
currency different from the presentation currency are translated into the
presentation currency as follows:
· assets and liabilities for each period end date presented are
translated at the period-end closing rate;
· income and expenses for each Income Statement are translated at
average exchange rates (unless this average is not a reasonable approximation
of the cumulative effect of the rates prevailing on the transaction dates, in
which case income and expenses are translated at the dates of the
transactions); and
· all resulting exchange differences are recognised in other
comprehensive income.
On consolidation, exchange differences arising from the translation of the net
investment in foreign entities, and of monetary items receivable from foreign
subsidiaries for which settlement is neither planned nor likely to occur in
the foreseeable future, are taken to other comprehensive income. When a
foreign operation is sold, such exchange differences are recognised in the
Income Statement as part of the gain or loss on sale.
2.7. Intangible assets
Exploration and evaluation assets
The Group recognises expenditure as exploration and evaluation assets when it
determines that those assets will be successful in finding specific mineral
resources. Expenditure included in the initial measurement of exploration and
evaluation assets and which are classified as intangible assets relate to the
acquisition of rights to explore, topographical, geological, geochemical and
geophysical studies, exploratory drilling, trenching, sampling and activities
to evaluate the technical feasibility and commercial viability of extracting a
mineral resource. Capitalisation of pre-production expenditure ceases when the
mining property is capable of commercial production.
Exploration and evaluation assets are recorded and held at cost
Exploration and evaluation assets are not subject to amortisation, as such at
the year-end all intangibles held have an indefinite life but are assessed
annually for impairment. The assessment is carried out by allocating
exploration and evaluation assets to cash generating units ('CGU's'), which
are based on specific projects or geographical areas. The CGU's are then
assessed for impairment using a variety of methods including those specified
in IFRS 6.
Under IFRS 6, there are four indicators of impairment:
· The period for which the Company has the right to explore in the
specific area has expired during the period or will expire in the near future,
and is not expected to be renewed;
· Substantive expenditures on further exploration for and evaluation of
mineral resources in the specific area is neither budgeted or planned;
· Exploration for and evaluation of mineral resources in the specific
area have not led to the discovery of commercially viable quantities of
mineral resources and the Company has decided to discontinue such activities
in the specific area; and
· Sufficient data exists to indicate, that although a development in
the specific area is likely to proceed, the carrying amount of the exploration
and evaluation asset is unlikely to be recovered in full from successful
development or by sale.
Whenever the exploration for and evaluation of mineral resources in cash
generating units does not fulfil the requirements of IFRS 6 or lead to the
discovery of commercially viable quantities of mineral resources and the Group
has decided to discontinue such activities of that unit, the associated
expenditures are written off to the Income Statement.
Exploration and evaluation assets recorded at fair-value on business
combination
Exploration assets which are acquired as part of a business combination are
recognised at fair value in accordance with IFRS 3. When a business
combination results in the acquisition of an entity whose only significant
assets are its exploration asset and/or rights to explore, the Directors
consider that the fair value of the exploration assets is equal to the
consideration. Any excess of the consideration over the capitalised
exploration asset is attributed to the fair value of the exploration asset.
2.8. Investments in subsidiaries and joint venture
Investments in Group undertakings are stated at cost, which is the fair value
of the consideration paid, less any impairment provision.
Additional contributions by the Joint Venture Partner which increase the net
assets in the joint venture, are recognised as 'increase in share of net
assets on joint venture' in the statement of profit or loss and other
comprehensive income. This is a non-cash adjustment and is to retain the
Group's ownership in the Joint Venture at 49%.
2.9. Property, plant and equipment
Property, Plant and equipment is stated at cost less accumulated depreciation
and any accumulated impairment losses. Depreciation is provided on all
property, plant and equipment to write off the cost less estimated residual
value of each asset over its expected useful economic life on a straight-line
basis at the following annual rates:
Office Equipment - 4 years
Machinery and Equipment - 5 to 15 years
Software - 2 years
Subsequent costs are included in the asset's carrying amount or recognised as
a separate asset, as appropriate, only when it is probable that future
economic benefits associated with the item will flow to the Group and the cost
of the item can be measured reliably. The carrying amount of the replaced part
is derecognised. All other repairs and maintenance are charged to the income
statement during the financial period in which they are incurred.
The assets' residual values and useful lives are reviewed, and adjusted if
appropriate, at the end of each reporting period.
An asset's carrying amount is written down immediately to its recoverable
amount if the asset's carrying amount is greater than its estimated
recoverable amount. If an impairment review is conducted following an
indicator of impairment, assets which are not able to be assessed for
impairment individually are assessed in combination with other assets within a
cash generating unit.
Gains and losses on disposal are determined by comparing the proceeds with the
carrying amount and are recognised within 'Other (losses)/gains' in the
statement of profit or loss.
2.10. Impairment of non-financial assets
Assets that have an indefinite useful life, for example, intangible assets not
ready to use, and goodwill, are not subject to amortisation and are tested
annually for impairment. Property, plant and equipment is reviewed for
impairment whenever events or changes in circumstances indicate that the
carrying amount may not be recoverable. An impairment loss is recognised for
the amount by which the asset's carrying amount exceeds its recoverable
amount. The recoverable amount is the higher of an asset's fair value less
costs to sell and value in use. For the purposes of assessing impairment,
assets are grouped at the lowest levels for which there are separately
identifiable cash flows (cash generating units). Non-financial assets that
suffered impairment are reviewed for possible reversal of the impairment at
each reporting date.
2.11. Financial assets
(a) Classification
The Group classifies its financial assets at amortised cost and at fair value
through the profit or loss or other comprehensive income (OCI). The
classification depends on the purpose for which the financial assets were
acquired. Management determines the classification of its financial assets at
initial recognition.
(b) Recognition and measurement
Amortised cost
Regular purchases and sales of financial assets are recognised on the trade
date at cost - the date on which the Group commits to purchasing or selling
the asset. Financial assets are derecognized when the rights to receive cash
flows from the assets have expired or have been transferred, and the Group has
transferred substantially all of the risks and rewards of ownership.
Fair value through the profit or loss
Financial assets that do not meet the criteria for being measured at amortised
cost or 'fair value through other comprehensive income' (FVTOCI), are measured
at 'fair value through profit or loss' (FVTPL).
Financial assets at FTVPL, are measured at fair value at the end of each
reporting period, with any fair value gains or losses recognised in profit or
loss. Fair value is determined by using market observable inputs and data as
far as possible. Inputs used in determining fair value measurements are
categorised into different levels based on how observable the inputs used in
the valuation technique utilised are (the 'fair value hierarchy'):
- Level 1: Quoted prices in active markets for identical items (unadjusted)
- Level 2: Observable direct or indirect inputs other than Level 1 inputs
- Level 3: Unobservable inputs (i.e. not derived from market data).
The classification of an item into the above levels is based on the lowest
level of the inputs used that has a significant effect on the fair value
measurement of the item. Transfers of items between levels are recognised in
the period they occur.
(c) Impairment of financial assets
The Group recognises an allowance for expected credit losses (ECLs) for all
debt instruments not held at fair value through profit or loss. ECLs are based
on the difference between the contractual cash flows due in accordance with
the contract and all the cash flows that the Group expects to receive,
discounted at an approximation of the original effective interest rate (EIR).
The expected cash flows will include cash flows from the sale of collateral
held or other credit enhancements that are integral to the contractual terms.
ECLs are recognised in two stages. For credit exposures for which there has
not been a significant increase in credit risk since initial recognition, ECLs
are provided for credit losses that result from default events that are
possible within the next 12-months (a 12-month ECL). For those credit
exposures for which there has been a significant increase in credit risk since
initial recognition, a loss allowance is required for credit losses expected
over the remaining life of the exposure, irrespective of the timing of the
default (a lifetime ECL).
For trade receivables (not subject to provisional pricing) and other
receivables due in less than 12 months, the Group applies the simplified
approach in calculating ECLs, as permitted by IFRS 9. Therefore, the Group
does not track changes in credit risk, but instead, recognises a loss
allowance based on the financial asset's lifetime ECL at each reporting date.
The Group considers a financial asset in default when contractual payments are
90 days past due. However, in certain cases, the Group may also consider a
financial asset to be in default when internal or external information
indicates that the Group is unlikely to receive the outstanding contractual
amounts in full before taking into account any credit enhancements held by the
Group. A financial asset is written off when there is no reasonable
expectation of recovering the contractual cash flows and usually occurs when
past due for more than one year and not subject to enforcement activity.
At each reporting date, the Group assesses whether financial assets carried at
amortised cost are credit impaired. A financial asset is credit-impaired when
one or more events that have a detrimental impact on the estimated future cash
flows of the financial asset have occurred.
(d) Derecognition
The Group derecognises a financial asset only when the contractual rights to
the cash flows from the asset expire, or when it transfers the financial asset
and substantially all the risks and rewards of ownership of the asset to
another entity.
On derecognition of a financial asset measured at amortised cost, the
difference between the asset's carrying amount and the sum of the
consideration received and receivable is recognised in profit or loss. This is
the same treatment for a financial asset measured at fair value through profit
or loss (FVTPL).
2.12. Financial liabilities
Financial liabilities are classified, at initial recognition, as financial
liabilities at fair value through profit or loss, loans and borrowings,
payables, or as derivatives designated as hedging instruments in an effective
hedge, as appropriate. All financial liabilities are recognised initially at
fair value and, in the case of loans and borrowings and payables, net of
directly attributable transaction costs. The Group's financial liabilities
include trade and other payables and loans.
Subsequent measurement
The measurement of financial liabilities depends on their classification, as
described below:
Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include financial
liabilities held for trading and financial liabilities designated upon initial
recognition as at fair value through profit or loss. Financial liabilities are
classified as held for trading if they are incurred for the purpose of
repurchasing in the near term. This category also includes derivative
financial instruments entered into by the Group that are not designated as
hedging instruments in hedge relationships as defined by IFRS 9. Separated
embedded derivatives are also classified as held for trading unless they are
designated as effective hedging instruments. Gains or losses on liabilities
held for trading are recognised in the statement of profit or loss and other
comprehensive income.
Trade and other payables
After initial recognition, trade and other payables are subsequently measured
at amortised cost using the EIR method. Gains and losses are recognised in the
statement of profit or loss and other comprehensive income when the
liabilities are derecognised, as well as through the EIR amortisation process.
Amortised cost is calculated by taking into account any discount or premium on
acquisition and fees or costs that are an integral part of the EIR. The EIR
amortisation is included as finance costs in the statement of profit or loss
and other comprehensive income.
Derecognition
A financial liability is derecognised when the associated obligation is
discharged or cancelled or expires.
When an existing financial liability is replaced by another from the same
lender on substantially different terms, or the terms of an existing liability
are substantially modified, such an exchange or modification is treated as the
derecognition of the original liability and the recognition of a new
liability. The difference in the respective carrying amounts is recognised in
profit or loss and other comprehensive income.
A financial liability is derecognised when the obligation under the liability
is discharged or cancelled or expires.
Financial liabilities included in trade and other payables are recognised
initially at fair value and subsequently at amortised cost.
2.13. Cash and cash equivalents
Cash and cash equivalents comprise cash at bank and in hand.
2.14. Equity
Equity comprises the following:
· "Share capital" represents the nominal value of the Ordinary
shares;
· "Share Premium" represents consideration less nominal value of
issued shares and costs directly attributable to the issue of new shares;
· "Other reserves" represents the merger reserve, foreign currency
translation reserve, redemption reserve and share option reserve where;
o "Merger reserve" represents the difference between the fair value of an
acquisition and the nominal value of the shares allotted in a share exchange;
o "Foreign currency translation reserve" represents the translation
differences arising from translating the financial statement items from
functional currency to presentational currency;
o "Reverse acquisition reserve" represents a non-distributable reserve
arising on the acquisition of Finland Investments Limited;
o "Capital redemption reserve" represents a non-distributable reserve made
up of share capital;
o "Share option reserve" represents share options awarded by the group;
· "Retained earnings" represents retained losses.
2.15. Share capital, share premium and deferred shares
Ordinary shares are classified as equity. Incremental costs directly
attributable to the issue of new shares or options are shown in equity, as a
deduction, net of tax, from the proceeds provided there is sufficient premium
available. Should sufficient premium not be available placing costs are
recognised in the Income Statement.
Deferred shares are classified as equity. Deferred shares have no rights to
receive dividends, or to attend or vote at general meetings of the Company and
are only entitled to a return of capital after payment to holders of new
ordinary shares of £100,000 per each share held.
2.16. Share based payments
The Group operates a number of equity-settled, share-based schemes, under
which the Group receives services from employees or third party suppliers as
consideration for equity instruments (options and warrants) of the Group. The
fair value of the third party suppliers' services received in exchange for the
grant of the options is recognised as an expense in the Income Statement or
charged to equity depending on the nature of the service provided. The value
of the employee services received is expensed in the Income Statement and its
value is determined by reference to the fair value of the options granted:
· including any market performance conditions;
· excluding the impact of any service and non-market performance
vesting conditions (for example, profitability or sales growth targets, or
remaining an employee of the entity over a specified time period); and
· including the impact of any non-vesting conditions.
The fair value of the share options and warrants are determined using the
Black Scholes valuation model.
Non-market vesting conditions are included in assumptions about the number of
options that are expected to vest. The total expense or charge is recognised
over the vesting period, which is the period over which all of the specified
vesting conditions are to be satisfied. At the end of each reporting period,
the entity revises its estimates of the number of options that are expected to
vest based on the non-market vesting conditions. It recognises the impact of
the revision to original estimates, if any, in the Income Statement or equity
as appropriate, with a corresponding adjustment to a separate reserve in
equity.
When the options are exercised, the Group issues new shares. The proceeds
received, net of any directly attributable transaction costs, are credited to
share capital (nominal value) and share premium when the options are
exercised.
2.17. Taxation
No current tax is yet payable in view of the losses to date. During the year
ended 31 December 2024, the Company received £nil (2023: £61,343) in
Research and Development ("R&D") tax credits.
Deferred tax is recognised using the liability method in respect of temporary
differences arising from differences between the carrying amount of assets and
liabilities in the consolidated financial statements and the corresponding tax
bases used in the computation of taxable profit. However, deferred tax
liabilities are not recognised if they arise from the initial recognition of
goodwill; deferred tax is not accounted for if it arises from initial
recognition of an asset or liability in a transaction other than a business
combination that at the time of the transaction affects neither accounting nor
taxable profit or loss.
In principle, deferred tax liabilities are recognised for all taxable
temporary differences and deferred tax assets (including those arising from
investments in subsidiaries), are recognised to the extent that it is probable
that taxable profits will be available against which deductible temporary
differences can be utilised.
Deferred income tax assets are recognised on deductible temporary differences
arising from investments in subsidiaries only to the extent that it is
probable the temporary difference will reverse in the future and there is
sufficient taxable profit available against which the temporary difference can
be used.
Deferred tax assets and liabilities are offset when there is a legally
enforceable right to offset current tax assets against current tax liabilities
and when the deferred tax assets and liabilities relate to income taxes levied
by the same taxation authority on either the same taxable entity or different
taxable entities where there is an intention to settle the balances on a net
basis.
Deferred tax is calculated at the tax rates (and laws) that have been enacted
or substantively enacted by the statement of financial position date and are
expected to apply to the period when the deferred tax asset is realised or the
deferred tax liability is settled.
Deferred tax assets and liabilities are not discounted.
3. Financial risk management
3.1. Financial risk factors
The Group's activities expose it to a variety of financial risks: market risk
(foreign currency risk, price risk and interest rate risk), credit risk and
liquidity risk. The Group's overall risk management programme focuses on the
unpredictability of financial markets and seeks to minimise potential adverse
effects on the Group's financial performance. None of these risks are hedged.
Risk management is carried out by the London based management team under
policies approved by the Board of Directors.
Market risk
(a) Foreign currency risk
The Group operates internationally and is exposed to foreign exchange risk
arising from various currency exposures, primarily with respect to the Euro,
Danish Krone and the British Pound. Foreign exchange risk arises from future
commercial transactions, recognised assets and liabilities and net investments
in foreign operations.
The Group negotiates all material contracts for activities in relation to its
subsidiaries in either British Pounds, Euros, United States Dollar or Danish
Krone. The Group does not hedge against the risks of fluctuations in exchange
rates. The volume of transactions is not deemed sufficient to enter into
forward contracts as most of the foreign exchange movements result from the
retranslation of intercompany loans. The Group has sensitised the figures for
fluctuations in foreign exchange rates, as the Directors acknowledge that, at
the present time, the foreign exchange retranslations have resulted in rather
higher than normal fluctuations which are separately disclosed and is
predominantly due to the exceptional nature of the Euro exchange rate in the
last two years in the current economic climate. Further detail is in note 3.3.
(b) Price risk
The Group is not exposed to commodity price risk as a result of its
operations, which are still in the exploration phase. The Directors will
revisit the appropriateness of this policy should the Group's operations
change in size or nature.
The Group has exposure to equity securities price risk, as it holds listed
equity investments.
Credit risk
Credit risk arises from cash and cash equivalents as well as outstanding
receivables. Management does not expect any losses from non-performance of
these receivables. The amount of exposure to any individual counter party is
subject to a limit, which is assessed by the Board.
The Group considers the credit ratings of banks in which it holds funds in
order to reduce exposure to credit risk.
Liquidity risk
In keeping with similar sized mineral exploration groups, the Group's
continued future operations depend on the ability to raise sufficient working
capital through the issue of equity share capital or debt. The Directors are
reasonably confident that adequate funding will be forthcoming with which to
finance operations. Controls over expenditure are carefully managed.
With exception to deferred taxation, financial liabilities are all due within
one year.
3.2. Capital risk management
The Group's objectives when managing capital are to safeguard the Group's
ability to continue as a going concern, to enable the Group to continue its
exploration and evaluation activities, and to maintain an optimal capital
structure to reduce the cost of capital. In order to maintain or adjust the
capital structure, the Group may adjust the issue of shares or sell assets to
reduce debts.
At 31 December 2024 the Group had borrowings of £nil (31 December 2023:
£nil) and defines capital based on the total equity of the Company. The Group
monitors its level of cash resources available against future planned
exploration and evaluation activities and may issue new shares in order to
raise further funds from time to time.
Given the Group's level of debt versus its cash at bank and cash equivalents,
the gearing ratio is immaterial.
3.3. Sensitivity analysis
On the assumption that all other variables were held constant, and in respect
of the Group and the Company's expenses the potential impact of a 10%
increase/decrease in the UK Sterling:Euro and UK Sterling:DKK Foreign exchange
rates on the Group's loss for the period and on equity is as follows:
Potential impact on Euro expenses: 2024 (Loss)/profit before tax for the year ended Equity before tax for the year ended
31 December 2024 31 December 2024
Group Company Group Company
Increase/(decrease) in foreign exchange rate £ £ £ £
10% (10,021,516) (8,704,742) 33,226,548 41,088,363
-10% (9,101,312) (8,704,742) 32,706,652 41,088,363
Potential impact on DKK expenses: 2024 Loss before tax for the year ended Equity before tax for the year ended
31 December 2024 31 December 2024
Group Company Group Company
Increase/(decrease) in foreign exchange rate £ £ £ £
10% (9,599,201) (8,704,742) 33,849,005 41,088,363
-10% (9,523,627) (8,704,742) 32,084,195 41,088,363
4. Critical accounting estimates and judgements
The preparation of the Financial Statements in conformity with UK adopted IAS
requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent assets and
liabilities at the date of the financial statements and the reported amount of
expenses during the period. Actual results may vary from the estimates used to
produce these Financial Statements.
Estimates and judgements are regularly evaluated and are based on historical
experience and other factors, including expectations of future events that are
believed to be reasonable under the circumstances.
Items subject to such estimates and assumptions, that have a significant risk
of causing a material adjustment to the carrying amounts of assets and
liabilities within the next financial years, include but are not limited to:
Impairment of intangible assets - exploration and evaluation costs
Exploration and evaluation costs have a carrying value at 31 December 2024 of
£25,587,568 (2023: £31,237,336). Such assets have an indefinite useful life
as the Group has a right to renew exploration licences and the asset is only
amortised once extraction of the resource commences. Management tests for
impairment annually whether exploration projects have future economic value in
accordance with the accounting policy stated in note 2.7. Each exploration
project is subject to an annual review by either a consultant or senior
company geologist to determine if the exploration results returned during the
period warrant further exploration expenditure and have the potential to
result in an economic discovery. This review takes into consideration long
term metal prices, anticipated resource volumes and supply and demand outlook.
In the event that a project does not represent an economic exploration target,
results indicate there is no additional upside a decision will be made to
discontinue exploration or impairment indicators under IFRS 6 are identified,
an impairment charge will then be recognised in the Income Statement.
Useful economic lives of property, plant and equipment
The annual depreciation charge for property, plant and equipment is sensitive
to changes in the estimated useful economic lives and residual values of the
assets, taking into account that the assets are not used throughout the whole
year due to the seasonality of the licence locations. The useful economic
lives and residual values are re-assessed annually. They are amended when
necessary to reflect current estimates, based on economic utilisation and the
physical condition of the assets. See note 6 for the carrying amount of the
property plant and equipment and note 2.9 for the useful economic lives for
each class of assets.
Share based payment transactions
The Group has made awards of options and warrants over its unissued share
capital to certain Directors, employees and consultants as part of their
remuneration package. Certain warrants have also been issued to shareholders
as part of their subscription for shares and suppliers for various services
received. In the year ended 31 December 2024, 211,500,000 share options and
warrants were issued to Directors, employees and consultants (2023: £nil).
The valuation of these options and warrants involves making a number of
critical estimates relating to price volatility, future dividend yields,
expected life of the options and forfeiture rates. These assumptions have been
described in more detail in Note 19.
5. Segment information
Management has determined the operating segments based on reports reviewed by
the Board of Directors that are used to make strategic decisions. During the
period the Group had interests in three geographical segments: the United
Kingdom, Greenland and Finland. Activities in the UK are mainly administrative
in nature whilst the activities in Greenland and Finland relate to exploration
and evaluation work.
The Group had no turnover during the period.
2024 Greenland Finland UK Total
£ £ £ £
Revenue - - - -
Cost of sales (35,887) - - (35,887)
Administrative expenses (500,389) (73,258) (1,688,738) (2,262,385)
Impairment - (4,573,111) (328,947) (4,902,058)
Share of earnings from joint venture (18,114) - - (18,114)
Decrease in share of net asset (198,694) - - (198,694)
Valuation losses on fair value through profit and loss equity investments - - (1,390,625) (1,390,625)
Other net gains/(losses) 624 8,469 (877,556) (868,463)
Foreign exchange - - (369) (369)
Finance expense 985 (4,543) 1,895 (1,663)
Other income 75,424 41,420 - 116,844
Loss before tax per reportable segment (676,051) (4,601,023) (4,284,340) (9,561,414)
Additions to intangible asset 492,558 300,394 - 792,952
Reportable segment assets 29,816,111 1,690,225 2,647,614 34,153,950
2023 Greenland Finland UK Total
£ £ £ £
Revenue - - - -
Cost of sales 213,523 - - 213,523
Administrative expenses 548,395 131,464 949,414 1,629,273
Impairment - - 3,535,254 3,535,254
Share of earnings from joint venture 13,779 - - 13,779
Increase in share of net asset (283,697) - - (283,697)
Valuation losses on fair value through profit and loss equity investments - - 1,468,750 1,468,750
Other net gains/(losses) (20,719) (4,365,970) (44,830) (4,431,519)
Foreign exchange - - 53,318 53,318
Finance expense (3,503) 1,975 (5,511) (7,039)
Other income (219,825) (101,100) - (320,925)
(Profit)/loss before tax per reportable segment 247,953 (4,333,631) 5,956,395 1,870,717
Additions to PP&E 87,815 - 13,425 101,240
Additions to intangible asset 2,875,772 707,184 - 3,582,956
Reportable segment assets 31,450,603 6,210,310 2,859,641 40,520,554
6. Property, plant and equipment
Group
Software Machinery & equipment Office equipment Total
£ £ £ £
Cost
As at 1 January 2023 61,234 3,472,020 84,491 3,617,745
Exchange Differences - (73,952) (2,666) (76,618)
Additions - 87,815 13,425 101,240
Disposals (43,819) (104,731) (45,539) (194,089)
As at 31 December 2023 17,415 3,381,152 49,711 3,448,278
As at 1 January 2024 17,415 3,381,152 49,711 3,448,278
Exchange Differences - (128,968) (244) (129,212)
Disposals - (89,246) (31,983) (121,229)
As at 31 December 2024 17,415 3,162,938 17,484 3,197,837
Depreciation
As at 1 January 2023 53,816 1,780,426 65,166 1,899,408
Charge for the year 5,437 333,319 7,504 346,260
Disposals (43,819) (96,367) (43,386) (183,572)
Exchange differences - (39,144) - (39,144)
As at 31 December 2023 15,434 1,978,234 29,284 2,022,952
As at 1 January 2024 15,434 1,978,234 29,284 2,022,952
Charge for the year 1,981 302,685 8,162 312,828
Disposals - (89,246) (23,222) (112,468)
Exchange differences - (77,410) - (77,410)
As at 31 December 2024 17,415 2,114,263 14,224 2,145,902
Net book value as at 31 December 2023 1,981 1,402,918 20,427 1,425,326
Net book value as at 31 December 2024 - 1,048,675 3,260 1,051,935
Depreciation expense of £312,828 (31 December 2023: £346,260) for the Group
has been charged in administration expenses.
Company
Software Office equipment Total
£ £ £
Cost
As at 1 January 2023 61,234 76,346 137,580
Additions - 13,425 13,425
Disposals (43,819) (45,539) (89,358)
As at 31 December 2023 17,415 44,232 61,647
As at 1 January 2024 17,415 44,232 61,647
Disposals - (27,305) (27,305)
As at 31 December 2024 17,415 16,927 34,342
Depreciation
As at 1 January 2023 53,816 57,534 111,350
Charge for the year 5,437 9,964 15,401
Disposals (43,819) (43,386) (87,205)
As at 31 December 2023 15,434 24,112 39,546
As at 1 January 2024 15,434 24,112 39,546
Charge for the year 1,981 8,208 10,189
Disposals - (18,544) (18,544)
As at 31 December 2024 17,415 13,776 31,191
Net book value as at 31 December 2023 1,981 20,120 22,101
Net book value as at 31 December 2024 - 3,151 3,151
Depreciation expense of £10,189 (31 December 2023: £15,401) for the Company
has been charged in administration expenses.
7. Intangible assets
Intangible assets comprise exploration and evaluation costs. Exploration and
evaluation assets are measured at cost. Once the pre-production phase has been
entered into, the exploration and evaluation assets will cease to be
capitalised and commence amortisation.
Group
Exploration & Evaluation Assets - Cost and Net Book Value 31 December 31 December
2024 2023
£ £
Cost
As at 1 January 40,768,566 40,723,713
Additions 792,952 3,582,956
Disposal of FinnAust Mining Northern Oy - (2,877,609)
Reclassification of restricted cash (Note 12) (222,854) -
Movement in restricted cash (reclassified) (Note 12) 2,032 -
Exchange differences (1,319,840) (660,494)
As at year end 40,020,856 40,768,566
Provision for impairment
As at 1 January 9,531,230 8,873,585
Disposal of FinnAust Mining Northern Oy - (2,877,609)
Impairments 4,902,058 3,535,254
As at year end 14,433,288 9,531,230
Net book value 25,587,568 31,237,336
During the year ended 31 December 2018, the Directors concluded that an
impairment charge of £2,877,609 was prudent in relation to the FinnAust
Mining Northern Oy exploration assets. The impairment charge was recognised as
being the difference between the fair value of the intangibles and the
carrying amount. On 31 July 2023, the Company sold the entirety of its
shareholding in FinnAust Mining Northern Oy to Metals One Plc and following
the disposal, the impairment charge was eliminated.
The Dundas project in Greenland has a current JORC compliant mineral resource
of 29.7 million tonnes at 1.99% ilmenite (in-situ). Exploration projects in
Finland and the Disko project in Greenland are at an early stage of
development and there are no JORC (Joint Ore Reserves Committee) or non-JORC
compliant resource estimates available to enable value in use calculations to
be prepared. The Directors therefore undertook an assessment of the following
areas and circumstances that could indicate the existence of impairment:
· The Group's right to explore in an area has expired, or will
expire in the near future without renewal;
· No further exploration or evaluation is planned or budgeted for;
· A decision has been taken by the Board to discontinue exploration
and evaluation in an area due to the absence of a commercial level of
reserves; or
· Sufficient data exists to indicate that the book value will not
be fully recovered from future development and production.
Further, following an in-depth assessment of deficiencies in the 2022 work
programs at Dundas, alongside consultations with various independent
consultants, the Company determined that sufficient evidence existed to
warrant the reinstatement of the 2019 Mineral Resource Estimate (MRE) at the
Dundas Ilmenite Project. The Company is now evaluating a number of strategic
alternatives for the project, including expanding the license package to cover
historical copper showings in the area.
2023
Following their assessment, the Directors concluded that an impairment charge
of £3,535,254 was prudent in relation to the Disko exploration assets,
Thunderstone and Kangerluarsuk, for the year ended 31 December 2023. The
impairment charge was recognised as being the difference between the fair
value of the intangibles and their carrying amounts. Disko continued to focus
on the joint venture with Kobold Metals. Following their assessment, the
Directors concluded that no further impairment charge was required as at 31
December 2023.
2024
Following their assessment, the Directors concluded that an impairment charge
of £328,957 relating to additions occurred during 2024 was prudent in
relation to the Disko exploration assets, Thunderstone and Kangerluarsuk.
Additionally, following the relinquishment of the Enonkoski licence (FinnAust
Mining Finland Oy) during the year, the Directors determined that an
impairment charge of £442,957 was necessary for the year ended 31 December
2024. Furthermore, the Directors determined that an impairment charge of
£4,130,144 was required in relation to the Hammaslahti and Outokumpu licences
(FinnAust Mining Finland Oy) to represent the impairment necessary to bring
the carrying value down to the net recoverable amount (Note 31). These
impairment charges totalling £4,902,058 were recognised as the difference
between the fair value of the intangibles and their carrying amounts.
8. Fair Value Through Profit And Loss Equity Investments
During the year ended 31 December 2023, 80 Mile received shares 62,500,000 new
Ordinary Shares in Metals One Plc following its admission to AIM.
£
1 January 2023 -
Additions at cost 3,125,000
Change in fair value recognised in profit and loss (1,468,750)
31 December 2023 1,656,250
1 January 2024 1,656,250
Additions at cost -
Change in fair value recognised in profit and loss (1,390,625)
31 December 2024 265,625
Fair value through profit and loss equity investments include the following:
31 December 2024 31 December 2023
£ £
Quoted: Equity securities - United Kingdom 265,625 1,656,250
The fair value of quoted securities is based on published market prices of
£0.00425 as at 31 December 2024 (31 December 2023: £0.02650).
All assets and liabilities for which fair value is measured are categorised
within the fair value hierarchy. The fair value hierarchy prioritises the
inputs to valuation techniques used to measure fair value. The Group uses the
following hierarchy for determining and disclosing the fair value of financial
instruments and other assets and liabilities for which the fair value was
used:
· level 1: quoted prices in active markets for identical assets or
liabilities;
· level 2: inputs other than quoted prices included in level 1 that
are observable for the asset or liability, either directly (as prices) or
indirectly (derived from prices); and
· level 3: inputs for the asset or liability that are not based on
observable market data (unobservable inputs).
The following tables set forth, by level, equity investments measured at fair
value on a recurring basis as 31 December:
Quoted Prices in Active Markets for Identical Assets and Liabilities Significant Other Observable Inputs Significant Unobservable Inputs
(Level 1) (Level 2) (Level 3)
£ £ £
Equity securities:
31 December 2023 1,656,250 - -
31 December 2024 265,625 - -
9. Investments in subsidiary undertakings
Company
31 December 31 December
2024 2023
£ £
Shares in Group Undertakings
At beginning of period 558,342 558,342
At end of period 558,342 558,342
Loans to Group undertakings (Note 29) 38,426,094 42,000,536
Total 38,984,436 42,558,878
Investments in Group undertakings are stated at cost, which is the fair value
of the consideration paid, less any impairment provision.
Subsidiaries
Name of subsidiary Registered office address Country of incorporation and place of business Proportion of ordinary shares held by parent (%) Proportion of ordinary shares held by the Group (%) Nature of business
Centurion Mining Limited 6 Heddon Street, London, W1B 4BT United Kingdom 100% 100% Dormant
Centurion Universal Limited 6 Heddon Street, London, W1B 4BT United Kingdom 100% 100% Holding
Finland Investments Limited 6 Heddon Street, London, W1B 4BT United Kingdom 100% 100% Holding
FinnAust Mining Finland Oy ((1)) Kummunkatu 23, Finland Nil 100% Exploration
FI-83500 Outokumpu, Finland
Disko Exploration Limited 6 Heddon Street, London, W1B 4BT United Kingdom 100% 100% Exploration
Dundas Titanium A/S c/o Nuna Advokater ApS, Qullilerfik 2, 6, Postboks 59, Nuuk 3900, Greenland Greenland Nil 100% Exploration
All subsidiary undertakings, except FinnAust Mining Finland Oy ((1)), are
included in the consolidation.
(1) Subsequent to year end,( ) the Company entered into a Share Purchase
Agreement with Metals One PLC ("Metals One") to sell the entirety of its
shareholding in FinnAust Mining Finland Oy. The consideration for this
transaction is £250,000 in cash, less any working capital adjustment, and the
issuance of such a number of ordinary shares in the capital of Metals One
("Consideration Shares") that equalled ten percent of the issued share
capital, augmented by the issue of new ordinary shares pursuant to the
exercise of all warrants, the conversion of all convertible loan notes, and
the issuance of new shares to Metals One investors pursuant to a retail offer.
The proportion of the voting rights in the subsidiary undertakings held
directly by the parent company do not differ from the proportion of ordinary
shares held.
10. Investments in Joint Venture
During the 2021 financial year, Disko Exploration Ltd entered into a joint
venture agreement with Kobold Metals to drill in Greenland for critical
materials used in electric vehicles. On 1 February 2022, the joint venture
company, Nikkeli Greenland AS ("Nikkeli"), was incorporated and the specific
licence's were transferred to Nikkeli.
Proportion of ownership interest held
Name Registered office address Country of incorporation and place of business 31 December 2024 31 December 2023
Nikkeli Greenland A/S c/o Nuna Advokater ApS, Qullilerfik 2, 6, Postboks 59, Nuuk 3900, Greenland Greenland 49% 49%
2024 2023
£ £
At 1 January 4,740,705 4,470,787
Interest in joint venture - -
Share of loss in joint venture (18,114) (13,779)
(Decrease)/increase in share of net asset (198,694) 283,697
As at 31 December 4,523,897 4,740,705
Summarised financial information
2024 2023
£ £
Opening net assets 9,674,909 9,124,054
Additions in property, plant and equipment 7,846 552,991
Loss for the period (18,114) (13,779)
Other comprehensive income - -
Foreign exchange differences (432,199) 11,643
Closing net assets 9,232,442 9,674,909
Interest in joint venture at 49% 4,523,897 4,740,705
Carrying value 4,523,897 4,740,705
2024 2023
£ £
Revenues - -
Loss after tax from continuing operations (36,968) (28,121)
(36,968) (28,121)
2024 2023
£ £
Current assets - 76,516
Non-current assets 9,263,546 9,598,393
Current liabilities (31,104) -
9,232,442 9,674,909
The financial statements of the JV are prepared for the same reporting period
as the Company. When necessary, adjustments are made to bring the accounting
policies in line with those of the Company (refer to note 2.3.b).
(Decrease)/increase in share of net assets is a non-cash adjustment to
increase the Company's ownership in the Joint Venture to 49% from additional
contributions by the JV Partner (refer to note 2.8).
Nikkeli Greenland A/S had no contingent liabilities or commitments as at 31
December 2024 (2023: £nil).
Subsequent to the reporting date, on 1 January 2025, the Group's ownership
interest in the joint venture increased to 100%, as disclosed in Note 31.
11. Trade and other receivables
Group Company
Current 31 December 31 December 31 December 31 December
2024 2023 2024 2023
£ £ £ £
Receivable from related party 25,743 39,107 - -
Amounts owed by Group undertakings - - 94,268 373,847
Prepayments 96,202 65,761 87,575 58,522
VAT receivable 73,813 19,281 56,345 -
Other receivables 1,688,165 1,136,088 1,639,598 1,100,000
Total 1,883,923 1,260,237 1,877,786 1,532,369
'Other receivables' in both the Group and Company includes £135,000 (2023:
£1,100,000) of consideration payable by Metals One Plc following the
disposal, by the Company, of FinnAust Mining Northern Oy during the year ended
31 December 2023. An impairment of £915,000 was recognised during the year
ended 31 December 2024 (2023: £Nil), due to a decrease in the Metal One's
share price, which affected the value of the deferred consideration.
The fair value of all receivables is the same as their carrying values stated
above.
At 31 December 2024 all trade and other receivables were fully performing. No
ageing analysis is considered necessary as the Group has no significant trade
receivable receivables which would require such an analysis to be disclosed
under the requirements of IFRS 7. None of the amounts above are overdue or
impaired.
The carrying amounts of the Group and Company's trade and other receivables
are denominated in the following currencies:
Group Company
31 December 31 December 31 December 31 December
2024 2023 2024 2023
£ £ £ £
UK Pounds 1,823,687 1,182,628 1,877,786 1,532,369
Euros 40,294 56,100 - -
Danish Krone 19,942 21,509 - -
1,883,923 1,260,237 1,877,786 1,532,369
The maximum exposure to credit risk at the reporting date is the carrying
value of each class of receivable mentioned above. The Group does not hold any
collateral as security.
12. Cash and cash equivalents
Group Company
31 December 31 December 31 December 31 December
2024 2023 2024 2023
£ £ £ £
Cash at bank and in hand 414,968 200,700 392,147 17,550
Restricted cash 222,854 - - -
637,822 200,700 392,147 17,550
All the UK entities cash at bank is held with institutions with an AA- credit
rating. The Finland and Greenland entities cash at bank is held with
institutions whose credit rating is unknown.
Included within the cash balance is £222,854 of restricted cash that has been
deposited as security for the Company's remediation obligations under the
Mineral Resources Act. This classification was not made in the prior year. In
2023, the restricted cash was presented within Intangible Assets (Note 7);
however, it has been reclassified to Cash and Cash Equivalents in 2024 to more
accurately reflect its nature.
The carrying amounts of the Group and Company's cash and cash equivalents are
denominated in the following currencies:
Group Company
31 December 31 December 31 December 31 December
2024 2023 2024 2023
£ £ £ £
UK Pounds 404,952 92,906 392,147 17,550
Euros 9,910 53,304 - -
Danish Krone 222,960 36,625 - -
US Dollar - 17,865 - -
637,822 200,700 392,147 17,550
13. Deferred tax
An analysis of deferred tax liabilities is set out below.
Group Company
2024 2023 2024 2023
£ £ £ £
Deferred tax liabilities
- Deferred tax liability after more than 12 months 496,045 496,045 - -
Deferred tax liabilities 496,045 496,045 - -
During the year ended 30 June 2016, a deferred tax liability of £373,343
arose as a result of a fair value adjustment on the assets acquired and
liabilities assumed upon the acquisition of 60.37% of the share capital of 80
Mile Limited on 8 March 2016.
During the year ended 31 December 2017, a deferred tax liability of £122,702
arose as a result of a fair value adjustment on the assets acquired and
liabilities assumed upon the acquisition of Disko Exploration Limited.
The Group has additional capital losses of approximately £8,451,606 (2023:
£8,550,740) and other losses of approximately £8,106,839 (2023: £7,425,016)
available to carry forward against future taxable profits. No deferred tax
asset has been recognised in respect of these tax losses because of
uncertainty over the timing of future taxable profits against which the losses
may be offset.
14. Provision
As at 31 December 2024, the Directors recognised a provision of £200,000 in
respect of an obligation to settle a dispute with Capricorn Oil Limited,
regarding a consideration guarantee, from a Share Purchase Agreement entered
into in September 2016. The settlement amount has been agreed upon with the
counterparty and the outflow of economic resources occurred in full during the
first quarter of 2025.
15. Trade and other payables
Group Company
31 December 31 December 31 December 31 December
2024 2023 2024 2023
£ £ £ £
Trade payables 240,736 250,040 226,410 344,120
Accrued expenses 230,609 268,050 199,449 164,092
Other creditors 19,960 129,792 12,103 13,073
491,305 647,882 437,962 521,285
Trade payables include amounts due of £16,614 (31 December 2023: £90,048) in
relation to exploration and evaluation activities.
The carrying amounts of the Group and Company's trade and other payables are
denominated in the following currencies:
Group Company
31 December 31 December 31 December 31 December
2024 2023 2024 2023
£ £ £ £
UK Pounds 426,031 338,529 418,549 363,765
Euros 22,257 123,161 8,904 3,082
Danish Krone 43,017 186,192 10,509 154,438
491,305 647,882 437,962 521,285
16. Share capital and premium
Group and Company Number of shares Share capital
31 December 2024 31 December 2023 31 December 2024 31 December 2023
Ordinary shares 2,646,655,444 1,195,885,079 264,665 119,588
Deferred shares 558,104,193 558,104,193 558,104 558,104
Deferred A shares 68,289,656,190 68,289,656,190 6,828,966 6,828,966
Total 71,494,415,827 70,043,645,462 7,651,735 7,506,658
Number of Ordinary shares Share capital Share premium Total
Issued at 0.01 pence per share £ £ £
As at 1 January 2023 1,049,714,747 104,971 60,903,995 61,008,966
Issue of new shares - 20 February 2023 5,800,000 580 - 580
Issue of new shares - 20 February 2023 3,798,911 380 179,620 180,000
Issue of new shares - 3 July 2023 ((1)) 74,285,707 7,429 1,234,298 1,241,727
Issue of new shares - 3 July 2023 571,429 57 9,943 10,000
Issue of new shares - 4 August 2023 1,714,285 171 29,829 30,000
Issue of new shares - 1 September 2023 ((2)) 60,000,000 6,000 558,000 564,000
As at 31 December 2023 1,195,885,079 119,588 62,915,685 63,035,273
As at 1 January 2024 1,195,885,079 119,588 62,915,685 63,035,273
Issue of new shares - 30 January 2024 ((3)) 150,145,715 15,015 537,539 552,554
Issue of new shares - 06 February 2024 ((4)) 149,854,285 14,985 558,960 573,945
Issue of new shares - 06 February 2024 10,178,810 1,018 70,651 71,669
Issue of new shares - 22 August 2024 ((5)) 583,333,327 58,333 1,566,667 1,625,000
Issue of new shares - 31 December 2024 ((6)) 557,258,228 55,726 1,336,576 1,392,302
As at 31 December 2024 2,646,655,444 264,665 66,986,078 67,250,743
(1) Includes issue costs of £58,272 (4) Includes issue costs of £25,471
(2) Includes issue costs of £36,000 (5) Includes issue costs of £125,000
(3) Includes issue costs of £48,029 (6) Includes issue costs of £112,296
2023
On 20 February 2023, the Company issued and allotted 5,800,000 new Ordinary
Shares at nominal value and 3,798,911 new Ordinary Shares at a price of 5
pence per share.
On 3 July 2023, the Company issued and allotted 74,285,707 new Ordinary Shares
at a price of 1.75 pence per share and 571,429 new Ordinary Shares at a price
of 1.75 pence per share in lieu of fees.
On 4 August 2023, the Company issued and allotted 1,714,285 new Ordinary
Shares at a price of 1.75 pence per share.
On 1 September 2023, the Company issued and allotted 60,000,000 new Ordinary
Shares at a price of 1 pence per share.
2024
On 30 January 2024, the Company issued 150,145,715 Ordinary Shares at a price
of 0.4 pence per share.
On 6 February 2024, the Company issued 149,854,285 Ordinary Shares at a price
of 0.4 pence per share and 10,178,810 Ordinary Shares at a price of 0.71 pence
per share in lieu of Directors Settlement fees.
On 22 August 2024, the Company issued 583,333,327 Ordinary Shares at a price
of 0.3 pence per share.
On 31 December 2024, the Company issued 557,258,228 Ordinary Shares at a price
of 0.27 pence per share.
Deferred Shares (nominal value of 0.1 pence per share) Number of Deferred shares Share capital
£
As at 1 January 2023 558,104,193 558,104
As at 31 December 2023 558,104,193 558,104
As at 1 January 2024 558,104,193 558,104
As at 31 December 2024 558,104,193 558,104
Number of Deferred A shares Share capital
Deferred A Shares (nominal value of 0.1 pence per share) £
As at 1 January 2023 68,289,656,190 6,828,966
As at 31 December 2023 68,289,656,190 6,828,966
As at 1 January 2024 68,289,656,190 6,828,966
As at 31 December 2024 68,289,656,190 6,828,966
17. Other reserves
Group
Merger reserve Foreign currency translation reserve Reverse acquisition reserve Redemption reserve Share option reserve Total
£ £ £ £ £ £
At 1 January 2023 166,000 1,058,529 (8,071,001) 364,630 846,673 (5,635,169)
Currency translation differences - (731,885) - - - (731,885)
Forfeited Options - - - - (119,428) (119,428)
Expired Options - - - - (42,356) (42,356)
At 31 December 2023 166,000 326,644 (8,071,001) 364,630 684,889 (6,528,838)
At 1 January 2024 166,000 326,644 (8,071,001) 364,630 684,889 (6,528,838)
Currency translation differences - (1,375,855) - - - (1,375,855)
Issued Options - - - - 311,772 311,772
Expired Options - - - - - -
At 31 December 2024 166,000 (1,049,211) (8,071,001) 364,630 996,661 (7,592,921)
18. Financial Instruments by Category
Group 31 December 2024 31 December 2023
Amortised cost FVTP Total Amortised cost FVTP Total
Assets per Statement of Financial Performance £ £ £ £ £ £
Trade and other receivables (excluding prepayments) 1,702,721 85,000 1,787,721 194,476 1,000,000 1,194,476
Cash and cash equivalents 637,822 - 637,822 200,700 - 200,700
2,340,543 85,000 2,425,543 395,176 1,000,000 1,395,176
Group 31 December 2024 31 December 2023
Amortised cost Total Amortised cost Total
Liabilities per Statement of Financial Performance £ £ £ £
Trade and other payables (excluding non-financial liabilities) 491,305 491,305 647,882 647,882
491,305 491,305 647,882 647,882
Company 31 December 2024 31 December 2023
Amortised cost FVTP Total Amortised cost FVTP Total
Assets per Statement of Financial Performance £ £ £ £ £ £
Trade and other receivables (excluding prepayments) 1,705,211 85,000 1,790,211 473,847 1,000,000 1,473,847
Cash and cash equivalents 392,147 - 392,147 17,550 - 17,550
2,097,358 85,000 2,182,358 491,397 1,000,000 1,491,397
Company 31 December 2024 31 December 2023
Amortised cost Total Amortised cost Total
Liabilities per Statement of Financial Performance £ £ £ £
Trade and other payables (excluding non-financial liabilities) 437,962 437,962 521,285 521,285
437,962 437,962 521,285 521,285
19. Share based payments
The Company has established a share option scheme for Directors, employees and
consultants to the Group. Share options and warrants outstanding and
exercisable at the end of the period have the following expiry dates and
exercise prices:
Options & Warrants
Grant Date Expiry Date Exercise price in £ per share 31 December 2024 31 December 2023
10 July 2020 30 July 2025 0.10 4,400,000 4,400,000
10 July 2020 30 July 2025 0.15 1,100,000 1,100,000
15 February 2021 15 February 2025 0.15 11,000,000 11,000,000
15 February 2021 15 February 2025 0.20 11,000,000 11,000,000
15 February 2021 15 February 2025 0.25 11,000,000 11,000,000
04 April 2024 04 April 2029 0.01 41,000,000 -
04 April 2024 04 April 2029 0.02 41,000,000 -
04 April 2024 04 April 2029 0.04 41,000,000 -
06 September 2024 06 September 2027 0.035 24,000,000 -
24 October 2024 24 October 2029 0.01 64,500,000 -
7 January 2025 ((1)) 7 January 2028 0.0027 33,435,493 -
283,435,493 38,500,000
((1) ) Granted on 7 January 2025 but related to events during the
year ended 31 December 2024.
The Company and Group have no legal or constructive obligation to settle or
repurchase the options or warrants in cash.
The fair value of the share options and warrants was determined using the
Black Scholes valuation model. The parameters used are detailed
below:
2020 Options 2020 Options 2021 Options 2021 Options
Granted on: 10/7/2020 10/7/2020 15/2/2021 15/2/2021
Life (years) 5 years 5 years 4 years 4 years
Share price (pence per share) 6.16p 6.16p 9.20p 9.20p
Risk free rate 0.5% 0.5% 0.5% 0.5%
Expected volatility 30.24% 30.24% 61.47% 30.24%
Expected dividend yield - - - -
Marketability discount 20% 20% 20% 20%
Total fair value (£000) 2.5 26.5 270 173
2021 Options 2024 Options 2024 Options 2024 Options
Granted on: 15/2/2021 4/4/24 4/4/24 4/4/24
Life (years) 4 years 5 years 5 years 5 years
Share price (pence per share) 9.20p 3.10p 3.10p 3.10p
Risk free rate 0.5% 4.05% 4.05% 4.05%
Expected volatility 61.47% 78.04% 78.04% 78.04%
Expected dividend yield - - - -
Marketability discount 20% 20% 20% 20%
Total fair value (£000) 213 43 29.5 18.5
2024 Warrants 2024 Options 2024 Warrants
Granted on: 6/9/24 24/10/24 7/1/25 ((1))
Life (years) 3 years 5 years 3 years
Share price (pence per share) 3.33p 2.70p 2.70p
Risk free rate 4.28% 4.14% 4.30%
Expected volatility 181.24% 180.12% 69.32%
Expected dividend yield - - -
Marketability discount 20% 20% 20%
Total fair value (£000) 56 129 35
((2) ) Granted on 7 January 2025 but related to events during the
year ended 31 December 2024.
The expected volatility of the options is based on historical volatility for
the six months prior to the date of granting.
The risk-free rate of return is based on zero yield government bonds for a
term consistent with the option life.
A reconciliation of options and warrants granted over the year to 31
December 2024 is shown below:
2024 2023
Number Weighted average exercise price (£) Number Weighted average exercise price (£)
Outstanding at beginning of period 38,500,000 0.1969 71,500,000 0.1888
Expired - - (17,500,000) 0.1469
Forfeited - - (15,500,000) 0.2161
Granted 244,935,493 0.0151 - -
Outstanding as at period end 283,435,493 0.0371 38,500,000 0.1969
Exercisable at period end 250,000,000 0.0371 38,500,000 0.1969
2024 2023
Range of exercise prices (£) Weighted average exercise price (£) Number of shares Weighted average remaining life expected (years) Weighted average remaining life contracted (years) Weighted average exercise price (£) Number of shares Weighted average remaining life expected (years) Weighted average remaining life contracted (years)
0.00 - 0.05 0.0200 244,935,493 0.0200 4.0834 - - - -
0.05 - 2.00 0.1969 38,500,000 0.1969 3.5551 0.1969 38,500,000 1.1943 1.1943
During the period there was a charge of £311,772 (2023: credit £119,428)
in respect of share options.
20. Expenses by nature
Group
Year ended Year ended
31 December 31 December
2024 2023
£ £
Cost of Sales
Exploitation licence fees 3,900 161,642
Other 31,987 51,881
Total cost of sales 35,887 213,523
Administrative expenses
Employee expenses 375,819 421,869
Establishment expenses 49,308 39,625
Travel & subsistence 35,180 21,756
Professional & consultancy fees 845,601 765,716
IT & Software 19,497 24,644
Insurance 64,480 74,962
Depreciation 317,536 349,792
Share option expense 311,772 -
Share option credit - (119,428)
Provision expense 200,000 -
Other expenses 43,192 50,337
Total administrative expenses 2,262,385 1,629,273
Services provided by the Company's auditor and its associates
During the year, the Group (including overseas subsidiaries) obtained the
following services from the Company's auditors and its associates:
Group
Year ended Year ended
31 December 31 December
2024 2023
£ £
Fees payable to the Company's auditor and its associates for the audit of the 71,091 69,500
Parent Company and Consolidated Financial Statements
Fees payable to the Company's auditor and its associates for the review of 3,000 3,000
Interim Financial Statements
Fees payable to the Company's auditor for other services 700 670
21. Employee benefit expense
Group Company
Staff costs (excluding Directors) Year ended Year ended Year ended Year ended
31 December 31 December 31 December 31 December
2024 2023 2024 2023
£ £ £ £
Salaries and wages 145,269 210,446 65,539 297,520
Social security costs 24,094 40,447 23,757 38,905
Retirement benefit costs 2,976 3,640 2,976 3,640
Other employment costs 4,130 16,220 - 468
176,469 270,753 92,272 340,533
The average monthly number of employees for the Group during the year was 7
(year ended 31 December 2023: 14) and the average monthly number of employees
for the Company was 4 (year ended 31 December 2023: 7).
Of the above Group staff costs, £22,305 (year ended 31 December 2023:
£252,313) has been capitalised in accordance with IFRS 6 as exploratory
related costs and are shown as an intangible addition in the year.
22. Directors' remuneration
Year ended 31 December 2024
Short-term benefits Post-employment benefits Share based payments Total
Accruals
£ £ £ £ £
Executive Directors
Roderick McIllree (1) 26,250 - - 49,988 76,238
Eric Sondergaard 108,858 - - 76,738 185,596
( )
Non-executive Directors
Michael Hutchinson 75,000 - - 6,687 81,687
Roderick McIllree (1) 32,500 - - 18,947 51,447
Harry Ansell (2) 26,812 - - - 26,812
Troy Whittaker 42,083 5,417 - 12,260 59,760
311,503 5,417 - 164,620 481,540
For the year ending 31 December 2024, a further £23,188 was paid to Harry
Ansell during his non-directorship employment in the year.
(1) Transitioned from a Non-Executive Director to Executive Director on 1
October 2024.
(2) Resigned on 12 July 2024
Year ended 31 December 2023
Short-term benefits Post-employment benefits Share based payments Total
Accruals
£ £ £ £ £
Executive Directors
Robert Edwards (1) 60,185 57,669 2,658 - 120,512
Bo Møller Stensgaard (1) 122,733 - - - 122,733
Eric Sondergaard (2) - 1,107 - - 1,107
Non-executive Directors
Peter Waugh (1) 10,000 14,000 222 - 24,222
Michael Hutchinson 12,500 - - - 12,500
Roderick McIllree (2) - 553 - - 553
Harry Ansell (2) - 1,383 - - 1,383
Troy Whittaker (2) 553 553
205,418 75,265 2,880 - 283,563
For the year ending 31 December 2023, a further £2,118 was paid to Bo
Stensgaard during his non-directorship employment in the year.
(1) Resigned on 19 December 2023
(2) Appointed on 19 December 2023
Of the above Group directors' remuneration, £117,601 (31 December 2023:
£129,567) has been capitalised in accordance with IFRS 6 as exploratory
related costs and are shown as an intangible addition in the year. The above
figures do not include employer portion of NIC. Directors NIC for the year
ending 31 December 2024 was £17,193 (31 December 2023: £9,292). These have
been included in Note 21.
Details of fees paid to Companies and Partnerships of which the Directors
detailed above are Directors and Partners have been disclosed in Note 29.
The remuneration of Directors and key executives is determined by the
remuneration committee having regard to the performance of individuals and
market trends.
23. Other (losses) / gains
Group
Year ended Year ended
31 December 31 December
2024 2023
£ £
Gain on disposal of property, plant and equipment 5,966 20,291
Gain on disposal of FinnAust Mining Northern Oy - 4,296,421
Valuation losses on fair value through profit and loss equity investments (1,390,625) (1,468,750)
(Note 8)
Valuation losses on deferred consideration (1) (915,000) -
Other gains 40,571 114,807
Other (losses) / gains (2,259,088) 2,962,769
(1) An impairment of £915,000 was recognised during the year ended 31
December 2024 (2023: £Nil) in relation to the deferred consideration
receivable following the sale of FinnAust Mining Finland Oy in 2023. The
impairment arose due to a decrease in Metals One Plc's share price, which
affected the value of the deferred consideration.
24. Finance expense / (income)
Group
Year ended Year ended
31 December 31 December
2024 2023
£ £
Interest (expense) / income from cash and cash equivalents (1,663) 7,039
Finance (expense) / Income (1,663) 7,039
25. Other Income
Group
Year ended Year ended
31 December 31 December
2024 2023
£ £
Income from related parties 80,165 281,247
Other income 36,679 39,678
Other Income 116,844 320,925
Nikkeli Greenland A/S, joint venture company, was invoiced £69,513 during the
year ended 31 December 2024 (31 December 2023: £224,141) for management
services provided
26. Income tax expense
No charge to taxation arises due to the losses incurred.
The tax on the Group's loss before tax differs from the theoretical amount
that would arise using the weighted average tax rate applicable to the losses
of the consolidated entities as follows:
Group
Year ended Year ended
31 December 2024 31 December 2023
£ £
Loss before tax (9,561,414) (1,870,717)
Tax at the applicable rate of 22.59% (2023: 25.08%) (2,160,302) (469,251)
Effects of:
Expenditure not deductible for tax purposes 74,149 88,198
Depreciation in excess of/(less than) capital allowances 99,134 111,032
Net tax effect of losses carried forward 1,987,019 331,364
Tax refund - 61,343
The R&D tax credit is based on specific projects undertaken and claims
submitted to HMRC. The reclaim for 2022, totalling of £61,343, was recognised
and paid during the year ended 31 December 2023. Research and development tax
credits are recognised upon receipt of payment from HMRC.
The weighted average applicable tax rate of 22.59% (2023: 25.08%) used is a
combination of the 25% standard rate of corporation tax in the UK, 20% Finnish
corporation tax and 25% Greenlandic corporation tax.
The Group has a potential deferred income tax asset of approximately
£3,218,891 (2023: £1,231,872) due to tax losses available to carry forward
against future taxable profits. The Company has tax losses of approximately
£8,106,839 (2023: £7,425,016) available to carry forward against future
taxable profits. No deferred tax asset has been recognised on accumulated tax
losses because of uncertainty over the timing of future taxable profits
against which the losses may be offset.
On 20 June 2023, Finance (No.2) Act 2023 was substantively enacted in the
UK, introducing a global minimum effective tax rate of 15%. The legislation
implements a domestic top-up tax and a multinational top-up tax, effective
for accounting periods starting on or after 31 December 2023. However, this
legislation does not apply to the Group in the financial year beginning 1
January 2024 as its consolidated revenue does not meet the legislation
requirements of being greater than €750m in two of the four
preceding years, the group will continue to monitor the legislation in future
years.
27. Earnings per share
Group
The calculation of the total basic earnings per share of (0.57) pence (31
December 2023: (0.16) pence) is based on the loss attributable to equity
holders of the parent company of £9,561,414 (31 December 2023: loss
£1,809,374) and on the weighted average number of ordinary shares of
1,664,901,545 (31 December 2023: 1,117,083,397) in issue during the year.
In accordance with IAS 33, basic and diluted earnings per share are identical
for the Group as the effect of the exercise of share options would be to
decrease the earnings per share. Details of share options that could
potentially dilute earnings per share in future periods are set out in Note
19.
28. Commitments
License commitments
As at 31 December 2024, 80 Mile owned one mineral exploitation licence (MIN
2021/08) and two mineral exploration licenses, 2015/08, 2020/114, which form
the Dundas project. 80 Mile also owns 2011/31, 2020/03, 2020/06, which are
held by Disko. Further, on 1 January 2025, the Group increased its ownership
interest in Nikkeli from 49% to 100%, acquiring 100% ownership of Nikkeli's
six licences: MEL 2024-30, MEL 2019-116, MEL 2017-01, MEL 2020-10, MEL 2018-16
and MEL 2012-29. These licences include commitments to pay annual licence fees
and minimum spend requirements.
As at 31 December 2024 these are as follows:
Group
Group License fees Minimum spend requirement Total
£ £ £
Not later than one year 30,892 7,911,195 7,942,087
Later than one year and no later than five years 191,717 45,821,453 46,013,170
Total 222,609 53,732,648 53,995,257
29. Related party transactions
Loans to/(from) Group undertakings
Amounts receivable as a result of loans granted to/(from) subsidiary
undertakings are as follows:
Company
31 December 31 December
2024 2023
£ £
Finland Investments Ltd (4,424,463) (4,390,218)
FinnAust Mining Finland Oy (1) 6,060,038 9,279,549
Centurion Mining Limited 345 345
Dundas Titanium A/S 32,766,276 32,139,516
Disko Exploration Limited 4,023,898 4,971,344
At 31 December (Note 9) 38,426,094 42,000,536
Loans granted to subsidiaries have increased during the year due to additional
loans being granted to the subsidiaries, and foreign exchange gain of
£1,719,898 (31 December 2023: £941,103 loss), given that no loans were
repaid during the year. These amounts are unsecured and repayable in Euros and
Danish Krone on demand from the Company.
All intra Group transactions are eliminated on consolidation.
(1) The loan granted to FinnAust Mining Finland Oy increased by £468,712
during the year and subsequently impaired by £3,688,223.
An additional loan of £3,180 was granted to White Flame Energy Ltd, a company
which was acquired post year end. Refer to Note 31.
Other transactions
The Group defines its key management personnel as the Directors of the Company
as disclosed in the Directors' Report.
PMW Consultancy Services, operated by Peter Waugh as a sole trader, was paid a
fee of £nil for the year ended 31 December 2024 (31 December 2023: £8,000)
for consulting services to the Company. Peter Waugh resigned from the Company
on 19 December 2023. There was a balance of £nil owing as at 31 December 2023
and 2024.
Nikkeli Greenland A/S, joint venture company, was invoiced £69,513 during the
year ended 31 December 2024 (31 December 2023: £224,141) for management
services provided. There was a balance of £25,743 receivable at year end (31
December 2023: £ nil). Nikkeli Greenland A/S show this balance as part of
their contributed capital.
30. Ultimate controlling party
The Directors believe there is no ultimate controlling party.
31. Events after the reporting date
Acquisition of White Flame Energy Ltd
On 13 January 2025, 80 Mile completed the acquisition of White Flame Energy
Ltd ("White Flame") following the satisfaction of all condition's precedent,
including regulatory approval. The key details of the acquisition are as
follows:
Transaction Overview:
80 Mile acquired a controlling interest in White Flame Energy through the
transfer of 179,314,780 shares, representing 96.64% of White Flame's issued
capital. The consideration was satisfied through two allotments of new
Ordinary Shares in 80 Mile:
- On 13 January 2025, the Company issued 838,710,808 Ordinary
Shares at a price of 0.3127 pence per share to acquire 95.36% of White Flame's
share capital;
- On 11 March 2025 the Company issued 11,246,910 Ordinary Shares
for 0.3127 pence per share to increase its holding to 96.64%.
The acquisition was approved by 80 Mile shareholders at a General Meeting held
on 10 July 2024.
Consideration and Control:
The acquisition agreement was structured in two tranches: Tranche 1 related to
the acquisition of up to 51% of White Flame's issued share capital, while
Tranche 2 provided 80 Mile with a three-year option to acquire up to the
remaining 49%. On 13 January 2025, 80 Mile elected to exercise this option
early and proceeded with the acquisition of 95.36% of White Flame's share
capital, with an additional 1.28% acquired on 11 March 2025. Control of White
Flame was deemed to have transferred on 13 January 2025, when all conditions
were met and the share issuance was completed.
Related Party Disclosures:
Roderick McIllree and Michael Hutchinson serve as board members of White
Flame. Eric Sondergaard, Managing Director of 80 Mile also holds a
shareholding interest in White Flame. Accordingly, the acquisition of White
Flame constitutes a related party transaction.
Acquisition of Hydrogen Valley Ltd Joint Venture
On 16 January 2025, 80 Mile acquired 24% equity interest in Hydrogen Valley
Ltd ("Hydrogen Valley"). The key details of the acquisition are as follows:
Transaction Overview:
The Acquisition compromises of four stages:
- Stage 1: The Company has subscribed for and converted £200,000
of convertible loan notes constituted by Hydrogen Valley. Following conversion
of the £200,000 loan notes, the Company now holds a 5% interest in Hydrogen
Valley;
- Stage 2: subject to the Resolutions being passed at the General
Meeting, the Company will pay £800,000 in cash and as deferred consideration
allot and issue 423,957,023 new ordinary shares of 80 Mile (equal to 14.5% of
the Issued Ordinary Share Capital of the Company) for a further 19% interest
in Hydrogen Valley;
- Stage 3: shareholders of Hydrogen Valley have granted to the
Company an option to acquire a further 25% interest in Hydrogen Valley for £1
million in cash and the issue of an additional 423,957,023 new ordinary shares
of 80 Mile equal to 14.5% of the Issued Ordinary Share Capital of 80 Mile;
- Stage 4: shareholders of Hydrogen Valley have granted the
Company an option to acquire the remaining 51% interest in Hydrogen Valley
through the payment (in either cash and/or ordinary shares of the Company) of
£6.05 million.
The acquisition (other than Stage 1) is conditional, inter alia, on 80 Mile
conducting and being satisfied with the results of, legal, financial, tax and
commercial due diligence on the Hydrogen Valley group and its business, assets
and liabilities and the Placing having completed and Admission having
occurred.
Key Dates:
The acquisition was approved by 80 Mile shareholders at a General Meeting held
on 13 January 2025.
Consideration and Ownership:
On 16 January 2025, the Company issued 423,957,023 Ordinary Shares at a price
of 0.305 pence per share, completing Stage 2 of the acquisition of Hydrogen
Valley; moving to a 24% equity interest.
Related Party Disclosures:
There were no related parties involved in the acquisition of Hydrogen Valley.
Further share issuances
On 13 January 2025, the Company issued 15,000,000 Ordinary Shares at a price
of 0.31 pence per share in lieu of services.
Joint Venture Ownership
On 1 January 2025, the Group increased its ownership interest in the Nikkeli
joint venture from 49% to 100%. Under the original agreement, the Group's
interest in Nikkeli was expected to revert to 51%, with Kobold retaining 49%.
However, following negotiations with Kobold, the Group reacquired full
ownership of Nikkeli. As a result, the Group now holds 100% of the entity,
with the change effective from 1 January 2025.
Disposal of FinnAust Mining Finland
Transaction Overview:
On 19 March 2025, the Company announced the execution of a Share Purchase
Agreement for the sale of its wholly owned subsidiary, FinnAust Mining Finland
Oy ("FinnAust"), to Metals One Plc ("Metals One"). The key details of the
disposal are as follows:
The consideration payable by Metals One to the Company for the entire issued
share capital of FinnAust is £250,000 in cash, less any working capital
adjustment, and the allotment and issue of such number of ordinary shares in
the capital of Metals One (the "Consideration Shares") that equals ten per
cent. of the issued share capital as enlarged by the issue of new ordinary
shares to be conducted by Metals One. The Consideration Shares will be
allotted and issued approximately 6 months after completion of the proposed
transaction.
Related Party Disclosures:
There were no related parties involved in the disposal of FinnAust to Metals
One.
For further information please visit http://www.80mile.com or contact:
Eric Sondergaard 80 Mile plc enquiry@80mile.com
Ewan Leggat / Devik Mehta SP Angel Corporate Finance LLP +44 (0) 20 3470 0470
(Nominated Adviser and Broker)
Harry Ansell / Katy Mitchell / Andrew de Andrade Zeus Capital Limited (Joint Broker) +44 (0) 20 3829 5000
Megan Ray / Said Izagaren BlytheRay +44 (0) 20 7138 3204
(Media Contact)
80mile@blytheray.com
About 80 Mile Plc:
80 Mile Plc, listed on the London AIM market, Frankfurt Stock Exchange, and
the U.S. OTC Market under the ticker BLLYF, is an exploration and development
company focused on high-grade critical metals in Tier 1 jurisdictions. With
multiple projects in Greenland, as well as a developing industrial gas and
biofuels business in Italy, 80 Mile offers both portfolio and commodity
diversification focused on base metals, precious metals, and industrial gas
while expanding into sustainable fuels and clean energy solutions in Tier 1
jurisdictions. 80 Mile's strategy is centred on advancing key projects while
creating value through partnerships and strategic acquisitions.
80 Mile's recent acquisition of White Flame Energy expands its portfolio into
the energy and gas sector, adding large-scale licenses for industrial gas,
natural gas, and liquids in East Greenland. Approved by shareholders in July
2024, this acquisition diversifies the Company's assets and aligns with its
strategy to contribute to sustainable energy solutions, while also exploring
conventional energy resources.
The Disko-Nuussuaq nickel-copper-cobalt-PGE project in Greenland is a primary
focus for 80 Mile, 100% owned by 80 Mile PLC. Seven priority targets
exhibiting spatial characteristics indicative of potential deposits on a scale
comparable to renowned mining operations such as Norilsk, Voisey's Bay, and
Jinchuan, will be advanced by the Company.
The Dundas Ilmenite Project, 80 Mile's most advanced asset in northwest
Greenland, is fully with a JORC-compliant Mineral Resource of 117 Mt at 6.1%
ilmenite and an offshore Exploration Target of up to 530 Mt. Dundas is poised
to become a major supplier of high-quality ilmenite. Recent discoveries of
hard rock titanium mineralization, with bedrock samples showing nearly double
the ilmenite content of previous estimates, further enhance the project's
world-class potential. 80 Mile owns 100% of the Dundas Ilmenite Project under
its subsidiary Dundas Titanium A/S in Greenland.
The Thule Copper Project is a significant component of 80 Mile's portfolio in
northwest Greenland, focused on exploring and developing high-grade copper
deposits within the Thule Basin in northwest Greenland. Leveraging existing
infrastructure and exploration credits, the project is strategically
positioned in an underexplored region with substantial mineral potential. 80
Mile's established basecamp at Moriusaq will support cost-effective
exploration, aligning with the Company's broader strategy to secure
high-quality copper and industrial gas projects.
In March 2025, 80 Mile divested its Finnish portfolio, selling its subsidiary,
FinnAust Mining Finland Oy, to Metals One. The portfolio consisted of licenses
comprising the Hammaslahti Copper-Zinc Project and Outokumpu Copper Project.
80 Mile retains 100% of the rights to any industrial gases (including helium
and hydrogen) associated with the projects.
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. END FR FMMATMTMJBPARecent news on 80 Mile
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