REG - 80 Mile PLC - Interim Results
30/09/2024 07:00
For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240930:nRSd1064Ga&default-theme=true
RNS Number : 1064G 80 Mile PLC 30 September 2024
80 Mile Plc / Ticker: 80M / Market: AIM / Sector: Mining
30 September 2024
80 Mile Plc ('80 Mile' or the 'Company')
Interim Results
80 Mile Plc, the AIM, FSE listed, and Pink-market traded, exploration company
with projects in Greenland and Finland, is pleased to announce its Interim
Results for the six months ended 30 June 2024 (the 'Period').
Highlights in H1 2024
· New board installed in late 2023 following the resignation of
Robert Edwards (Chairman), Bo Moller Stensgaard (Executive Director) &
Peter Waugh (Non-executive).
· Appointment of experienced and well regarded executives Eric
Sondergaard, Troy Whittaker and Roderick McIllree with a mandate to revitalise
the Company's strategy.
· Company-wide review and restructure, resulting in a decrease in
full time employees from 14 to 3.
· Expansion of Corporate Strategy to include Industrial Gases and
Hydrocarbon.
· Raising of £1.2m through the issuance of new Ordinary Shares to
new and existing shareholders to support an expanded Corporate Strategy.
· 2019 Dundas Mineral Resource Estimate reinstated as the control
MRE for the Project.
· Acquisition of Thule Copper, a historic sedimentary hosted copper
project via an approved application to expand the Dundas licence area.
· Disko ownership scheduled to increase to 51%, with both JV
parties re-iterating ongoing support for the project under the new leadership.
· Initiated companywide review of projects with a focus on
previously unreleased and/or undiscovered historical information.
· Proposed acquisition of White Flame Energy Ltd and the highly
prospective Jameson Land Basin Project, which was subsequently approved by
shareholders post-period end.
Post Period
· Indications of naturally occurring helium and hydrogen and a high
concentrate Lithium brine at Outokumpu, Finland.
· Name change to 80 Mile Plc approved by shareholders.
· Significant source rock discovery at Dundas Ilmenite Project.
· Expanded engagement on Company projects with interested parties.
· Raising gross proceeds of £1.75m through the issuance of
Ordinary Shares to new and existing shareholders.
Chairman's Statement
The first half of the year marked a significant turning point for the Company
as it emerged from a challenging period of extended eroded shareholder value.
Significant exploration activities had largely halted, and the Company faced
considerable financial difficulties. Excessive general and administrative
costs had been maintained despite a near total absence of meaningful
fieldwork. The appointment of the new board in December 2023 has injected
fresh energy into the organisation, refocusing efforts on revitalising the
Company's high-quality mineral assets. Notably the Outokumpu project was
identified as having significant naturally occurring industrial gas potential
(helium, hydrogen and argon), with work continuing throughout the period.
A considerable amount of effort has been placed on rebuilding and
strengthening existing relationships with our exploration and funding
partners, and I am confident that we are now well-positioned to leverage
positive changes deployed by the new management team.
After an in-depth assessment of the 2022 work programmes undertaken at Dundas,
and consultations with independent consultants, the Company announced the
reinstatement of the 2019 Mineral Resource Estimate at the Dundas Ilmenite
Project. The reinstatement was provided after serious issues regarding the
2022 drill programme were uncovered in an overall review of the project, which
were not distributed to the board at the time.
The Company announced an expansion of its Corporate Strategy to include the
exploration and development of helium, hydrogen, industrial gases and
hydrocarbons, reflecting a commitment to innovation and growth in the natural
resources sector, while maximising shareholder value. This shift also
acknowledges the rising global demand for helium and industrial gases in
crucial industries such as healthcare, aerospace, and energy.
80 Mile Plc announced an update on the Disko-Nuussuaq Ni-Cu-Co-PGE project in
West Greenland, which re-affirmed the results of the 2022 work programme, and
the appropriate path forward for the project. This update was supported by the
Company's joint venture partner KoBold Metals, who also endorsed the change of
management to unlock the potential of the partnership.
The Company announced the acquisition, via expansion of an existing licence,
of the Thule Copper Project. The licence expansion comes at no cost,
leveraging existing exploration credits for Dundas and is a result of an
extensive data review and analysis beginning in 2019. The expansion covers
historic and newly discovered copper showings, including the Cominco Gossan
which returned 1% Copper over 34m from outcropping rock chip samples.
Post-period, the desktop studies on Outokumpu concluded, and a market update
was made having identified what appear to be significant occurrences of
industrial gas within the license areas. The Company intends to deepen its
understanding of this potential in the coming months, with field activities
planned for imminent commencement. We have also received considerable interest
from peers, and discussions are ongoing to explore potential value-creating
opportunities, although no definitive agreements have been reached at this
stage.
In the post-period, the conditional acquisition of White Flame Energy has
further solidified the Company's strategic shift towards industrial gases and
liquid hydrocarbons, with optimism about the potential value this acquisition
should unlock for shareholders.
Post-period, 80 Mile Plc made a significant discovery of hard rock titanium
mineralisation at the Dundas Ilmenite Project. This represents the first
systematic assessment of the rock potential within the project's license area
and further underscores Dundas' potential as a world-class source of
high-grade titanium dioxide feedstock. Notably, 74 bedrock samples returned an
average of 11.12% ilmenite (5.2% TiO2), with values consistently almost double
those of the existing JORC-compliant resource.
Looking ahead into the remainder of 2024, 80 Mile will continue to execute its
new strategy, focussing on the exploration and development of its projects,
with the goal of enhancing their value and, in turn, maximising returns for
our shareholders.
Financial
In January, we successfully raised £1.2 million in new equity, primarily from
existing shareholders, to support our ongoing restructuring efforts. This
funding has been critical in enabling us to streamline operations, including
the necessary redundancies of non-essential staff accumulated over the past
two years. The raised capital was swiftly allocated to securing the Company's
asset register, reinstating the Mineral Resource Estimate (MRE) for Dundas,
and revitalising our existing joint venture at Disko with KoBold Metals. Work
on these initiatives is progressing rapidly, and we anticipate providing
shareholders with updates in due course.
Currently, the Company is developing a global exploration target for the
Dundas area, which the current management continues to view as a highly
mineralised region with significant potential for both copper and titanium.
Regarding the previous management and board's decision to curtail activities
at Dundas, we are actively exploring legal avenues to address the decisions
made, particularly concerning the significant write-off of Dundas.
Additionally, we identified potential improprieties involving a former senior
exploration employee regarding Company assets during the period, which we
immediately took steps to remediate and removed that employee from the
Company.
Outlook
As we progress through 2024, 80 Mile Plc is poised for a period of significant
growth and strategic development. Our immediate focus will be on advancing the
Outokumpu project in Finland, where we see substantial potential in industrial
gases, including helium, and naturally occurring hydrogen. The recent
conditional acquisition of White Flame Energy further solidifies our
commitment to this sector, and we are optimistic about the value this will
bring to our shareholders.
In parallel, we will continue to make progress at our Disko joint venture,
where revitalisation efforts are already yielding positive results. The Disko
project remains a cornerstone of our portfolio, and we anticipate further
advancements that will enhance its value proposition.
The Dundas Ilmenite Project in Greenland remains an important asset and works
at Dundas will continue with a measured focus as we prioritise the significant
opportunities at Outokumpu, Disko, and Jameson Land
The successful restructuring efforts and recent equity raise have provided the
financial stability needed to pursue these priorities. Our broadened corporate
strategy, now encompassing helium, industrial gases, and hydrocarbons, aligns
with our vision to diversify and strengthen our portfolio, positioning us to
meet the growing global demand in these critical sectors.
We are confident that the steps we are taking will lead to meaningful progress
across our projects, and we look forward to delivering value to our
shareholders throughout 2024 and beyond.
Michael Hutchinson
Non-Executive Chairman
Market Abuse Regulation (MAR) Disclosure
The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulations
(EU) No. 596/2014 ('MAR') which has been incorporated into UK law by the
European Union (Withdrawal) Act 2018.
For further information please visit www.80mile.com or contact:
Eric Sondergaard 80 Mile Plc enquiry@80mile.com
Ewan Leggat / Adam Cowl SP Angel Corporate Finance LLP +44 (0) 20 3470 0470
(Nominated Adviser and Joint Broker)
Harry Ansell / Katy Mitchell / Andrew de Andrade Zeus Capital Limited +44 (0) 20 3829 5000
(Joint Broker)
Lewis Jones Axis Capital Markets Limited +44 (0) 203 026 0320
(Joint Broker)
Tim Blythe / Megan Ray / Said Izagaren BlytheRay +44 (0) 20 7138 3205
(PR & IR Adviser)
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Notes 6 months to 30 June 2024 Unaudited 6 months to 30 June 2023 Unaudited
£ £
Continuing operations
Revenue - -
Cost of sales (15,849) (32,033)
Gross (loss) (15,849) (32,033)
Administration expenses (942,465) (932,792)
Other gains/(losses) 9 (1,004,439) 34,467
Foreign exchange 1,040 (70,355)
Operating loss (1,961,713) (1,000,713)
Other income 10 75,710 165,851
Net finance income/(expense) (1,404) 7,372
(Decrease)/increase in share of net assets on joint venture 8 (115,657) 177,810
Share of losses from joint venture 8 (9,160) (9,455)
Loss before income tax (2,012,224) (659,135)
Income tax expense - -
Loss for the period (2,012,224) (659,135)
Other comprehensive income
Items that may be reclassified to profit or loss
Currency translation differences (702,740) (906,600)
Other comprehensive loss for the period (2,714,964) (1,565,735)
Total comprehensive loss for the period (2,714,964) (1,565,735)
Earnings per share from continuing operations attributable to the equity
owners of the parent
Basic and diluted (pence per share) 11 (0.14)p (0.06)p
CONDENSED CONSOLIDATED BALANCE SHEET
Notes 30 June 2024 Unaudited 31 December 2023 Audited 30 June 2023 Unaudited
£ £ £
Non-current assets
Property, plant and equipment 5 1,237,189 1,425,326 1,582,916
Intangible assets 6 30,996,161 31,237,336 33,740,931
Fair value through profit and loss Equity Investments 7 593,750 1,656,250 -
Investments in Joint Venture 8 4,615,888 4,740,705 4,609,875
37,442,988 39,059,617 39,933,722
Current assets
Trade and other receivables 1,210,656 1,260,237 1,561,964
Cash and cash equivalents 224,980 200,700 80,964
1,435,636 1,460,937 1,642,928
Total assets 38,878,624 40,520,554 41,576,650
Non-current liabilities
Deferred tax liabilities 496,045 496,045 496,045
496,045 496,045 496,045
Current liabilities
Trade and other payables 431,354 647,882 1,144,753
431,354 647,882 1,144,753
Total liabilities 927,399 1,143,927 1,640,798
Net assets 37,951,225 39,376,627 39,935,852
Capital and reserves attributable to
equity holders of the Company
Share capital 7,537,676 7,506,658 7,493,002
Share premium 64,082,836 62,915,685 61,083,615
Shares to be issued - - 1,310,000
Other reserves (7,140,185) (6,528,838) (6,541,770)
Retained losses (26,529,102) (24,516,878) (23,408,995)
Total equity 37,951,225 39,376,627 39,935,852
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
Share capital Share premium Shares to be issued 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 period - - - - (659,135) (659,135)
Other comprehensive income for the year
Items that may be subsequently reclassified to profit or loss
Currency translation differences - - - (906,600) - (906,600)
Total comprehensive income for the year - - - (906,600) (659,135) (1,565,735)
Proceeds from share issues 580 - - - - 580
Share based payment 380 179,620 10,000 - - 190,000
Shares to be issued - - 1,300,000 - - 1,300,000
Total transactions with owners, recognised in equity 960 179,620 1,310,000 - - 1,490,580
Balance as at 30 June 2023 7,493,002 61,083,615 1,310,000 (6,541,770) (23,408,995) 39,935,852
Balance as at 1 January 2024 7,506,658 62,915,685 - (6,528,838) (24,516,878) 39,376,627
Loss for the period - - - - (2,012,224) (2,012,224)
Other comprehensive income for the year
Items that may be subsequently reclassified to profit or loss
Currency translation differences - - - (702,740) - (702,740)
Total comprehensive income for the year - - - (702,740) (2,012,224) (2,714,964)
Proceeds from share issues 30,000 1,096,500 - - - 1,126,500
Share based payment 1,018 70,651 - - - 71,669
Options issued - - - 91,393 - 91,393
Total transactions with owners, recognised in equity 31,018 1,167,151 - 91,393 - 1,289,562
Balance as at 30 June 2024 7,537,676 64,082,836 - (7,140,185) (26,529,102) 37,951,225
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
6 months to 30 June 2024 Unaudited 6 months to 30 June 2023 Unaudited
£ £
Cash flows from operating activities
Loss before taxation (2,012,224) (659,135)
Adjustments for:
Depreciation 162,586 178,286
Share based payments 71,669 180,000
Share options expense 91,393 -
Gain/(loss) on sale of property, plant and equipment (8,551) 4,706
Net finance (costs)/income 1,404 (7,372)
Fair value through profit and loss Equity Investments 7 1,062,500 -
Foreign exchange loss/(gain) - (40,642)
Share of loss from JV 8 9,160 9,455
Decrease/(increase) in share of net asset on joint venture 8 115,657 (148,543)
Decrease in trade and other receivables 49,582 738,165
(Decrease)/Increase in trade and other payables (216,530) 621,438
Net cash generated/(used in) from operations (673,354) 876,358
Cash flows from investing activities
Purchase of property, plant and equipment - (90,228)
Proceeds from sale of property, plant and equipment 8,551 (49)
Interest received 1,002 6,378
Purchase of intangible assets (435,770) (2,759,158)
Net cash (used in) investing activities (426,217) (2,843,057)
Cash flows from financing activities
Proceeds from share issues 1,200,000 580
Cost of share issues (73,500) -
Interest paid (2,410) (10)
Proceeds from borrowings 12 - 1,647,616
Repayment of borrowings 12 - (1,601,973)
Net cash used in financing activities 1,124,090 46,213
Net increase/(decrease) in cash and cash equivalents 24,519 (1,920,486)
Cash and cash equivalents at beginning of period 200,700 1,996,957
Exchange gains on cash and cash equivalents (239) 4,493
Cash and cash equivalents at end of period 224,980 80,964
NOTES TO THE INTERIM FINANCIAL STATEMENTS
1. General Information
The principal activity of 80 Mile Plc (the 'Company') and its subsidiaries
(together the 'Group') is the exploration and development of precious and base
metals. The Company's shares are listed on the AIM Market of the London Stock
Exchange ('AIM'), the Frankfurt Stock Exchange and the Pink-Market exchange.
The Company is incorporated and domiciled in the UK.
The address of its registered office is 6 Heddon Street, London, W1B 4BT.
2. Basis of Preparation
The condensed consolidated interim financial statements have been prepared in
accordance with the requirements of the AIM Rules for Companies. As permitted,
the Company has chosen not to adopt IAS 34 "Interim Financial Statements" in
preparing this interim financial information. The condensed consolidated
interim financial statements should be read in conjunction with the annual
financial statements for the year ended 31 December 2023. The interim
financial statements have been prepared in accordance with UK adopted
International Accounting Standards.
The interim financial information set out above does not constitute statutory
accounts within the meaning of the Companies Act 2006. It has been prepared on
a going concern basis in accordance with the recognition and measurement
criteria of UK adopted International Accounting Standards.
Statutory financial statements for the year ended 31 December 2023 were
approved by the Board of Directors on 28 June 2024 and delivered to the
Registrar of Companies. The report of the auditors on those financial
statements was unqualified with a material uncertainty related to going
concern.
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 30 June 2024, the Group had cash and cash equivalents of £224,980,
which did not include the £1.75 million (gross) from the placing announced on
23 August 2024 and received post-period end. The Directors have prepared
cash flow forecasts to 30 September 2025, 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 a Placing in January 2024 and August 2024
raising gross proceeds of £1.2 million and £1.75 million, respectively.
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.
Risks and uncertainties
The Board continuously assesses and monitors the key risks of the business.
The key risks that could affect the Company's medium term performance and the
factors that mitigate those risks have not substantially changed from those
set out in the Company's 2023 Annual Report and Financial Statements, a copy
of which is available on the Company's website: www.80mile.com
(http://www.80mile.com/) . The key financial risks are liquidity risk, credit
risk, interest rate risk and fair value estimation.
Critical accounting estimates
The preparation of condensed consolidated interim financial statements
requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities at the end of the reporting period.
Significant items subject to such estimates are set out in Note 4 of the
Group's 2023 Annual Report and Financial Statements. The nature and amounts of
such estimates have not changed significantly during the interim period.
3. Accounting Policies
Except as described below, the same accounting policies, presentation and
methods of computation have been followed in these condensed consolidated
interim financial statements as were applied in the preparation of the Group's
annual financial statements for the year ended 31 December 2023.
3.1 Changes in accounting policy and disclosures
(a) Accounting developments during 2024
The International Accounting Standards Board (IASB) issued various amendments
and revisions to International Financial Reporting Standards and IFRIC
interpretations. The amendments and revisions were applicable for the period
ended 30 June 2024 but did not result in any material changes to the financial
statements of the Group or Company.
(b) 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 Lack of Exchangeability - Amendments to IAS 21 The Effects of Changes in 1 January 2025
Foreign Exchange Rates
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.
4. Dividends
No dividend has been declared or paid by the Company during the six months
ended 30 June 2024 (2023: £nil).
5. Property, plant and equipment
Software Machinery & equipment Office equipment Total
£ £ £ £
Cost
As at 1 January 2023 61,234 3,472,020 84,491 3,617,745
Additions - 79,229 10,999 90,228
Disposals (43,819) (17,390) (39,507) (100,716)
Exchange Differences - (95,900) (179) (96,079)
As at 30 June 2023 17,415 3,437,959 55,804 3,511,178
As at 1 July 2023 17,415 3,437,959 55,804 3,511,178
Additions - 8,586 2,426 11,012
Disposals - (87,341) (6,032) (93,373)
Exchange Differences - 21,948 (2,487) 19,461
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
Additions - - - -
Disposals - (91,277) - (91,277)
Exchange Differences - (66,183) (125) (66,308)
As at 30 June 2024 17,415 3,223,692 49,586 3,290,693
Depreciation
As at 1 January 2023 53,816 1,780,426 65,166 1,899,408
Charge for the year 3,499 167,381 4,818 175,698
Disposals (43,819) (14,886) (37,354) (96,059)
Exchange differences - (50,785) - (50,785)
As at 30 June 2023 13,496 1,882,136 32,630 1,928,262
As at 1 July 2023 13,496 1,882,136 32,630 1,928,262
Charge for the year 1,938 165,938 2,686 170,562
Disposals - (81,481) (6,032) (87,513)
Exchange differences - 11,641 - 11,641
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 1,849 154,971 4,735 161,555
Disposals - (91,277) - (91,277)
Exchange differences - (39,726) - (39,726)
As at 30 June 2024 17,283 2,002,202 34,019 2,053,504
Net book value as at 30 June 2023 3,919 1,555,823 23,174 1,582,916
Net book value as at 31 December 2023 1,981 1,402,918 20,427 1,425,326
Net book value as at 30 June 2024 132 1,221,490 15,567 1,237,189
6. Intangible Assets
Intangible assets comprise exploration and evaluation costs and goodwill.
Exploration and evaluation costs comprise acquired and internally generated
assets.
Cost and Net Book Value Exploration & evaluation assets
£
Balance as at 1 January 2023 31,850,128
Additions 2,759,158
Exchange rate movements (868,355)
As at 30 June 2023 33,740,931
Balance as at 1 July 2023 33,740,931
Additions 823,798
Impairments (3,535,254)
Exchange rate movements 207,861
As at 31 December 2023 31,237,336
Balance as at 1 January 2023 31,237,336
Additions 435,770
Exchange rate movements (676,945)
As at 30 June 2024 30,996,161
7. 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 -
30 June 2023 -
31 July 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
Change in fair value recognised in profit and loss (Note 9) (1,062,500)
30 June 2024 593,750
Fair value through profit and loss equity investments include the following:
30 June 2024 Unaudited 31 December 2023 Audited 30 June 2023 Unaudited
£ £ £
Quoted:
Equity securities - United Kingdom 593,750 1,656,250 -
593,750 1,656,250 -
The fair value of quoted securities is based on published market prices of
£0.0095 as at 30 June 2024 (31 December 2023: £0.0265)
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 30 June and 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)
Description
Equity securities:
30 June 2023 - - -
31 December 2023 1,656,250 - -
30 June 2024 593,750 - -
8. 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 ("Nikelli"), was incorporated and the specific
licences were transferred to Nikkeli.
Proportion of ownership interest held
Name Registered office address Country of incorporation and place of business 30 June 2024 30 June 2023
Nikkeli Greenland A/S c/o Nuna Advokater ApS, Qullilerfik 2, 6, Postboks 59, Nuuk 3900, Greenland Greenland 49% 49%
£
As at 1 January 2023 4,470,787
Share of loss in joint venture (9,455)
Foreign exchange differences (29,267)
Increase in share of net asset 177,810
As at 30 June 2023 4,609,875
As at 1 July 2023 4,609,875
Share of loss in joint venture (4,324)
Increase in share of net asset 135,154
As at 31 December 2023 4,740,705
As at 1 January 2024 4,740,705
Share of loss in joint venture (9,160)
Decrease in share of net asset (115,657)
As at 30 June 2024 4,615,888
Summarised financial information
Nikkeli Greenland A/S 6 months to 30 June 2024 Unaudited 6 months to 30 June 2023 Unaudited
£ £
Current assets 9,338 2,480
Non-current assets 9,541,870 9,513,942
Current liabilities 131,030 108,515
9,420,178 9,407,907
6 months to 30 June 2024 Unaudited 6 months to 30 June 2023 Unaudited
£ £
Revenues - -
(Loss) after tax from continuing operations (18,695) (19,296)
(18,695) (19,296)
6 months to 30 June 2024 Unaudited 6 months to 30 June 2023 Unaudited
£ £
Opening net assets 9,674,909 9,124,054
Additions/(disposal) in PPE (23,766) 353,037
Loss for the period (9,160) (9,455)
Other comprehensive income - -
Foreign exchange differences (221,805) (59,729)
Closing net assets 9,420,178 9,407,907
Interest in joint venture at 49% 4,615,888 4,609,875
Carrying value 4,615,888 4,609,875
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. This adjustment is retrospective and
therefore an amendment was made to the prior year interim figures to bring
them in line with the equity method accounting policy adopted in the Financial
Statements for the year end 31 December 2022.
Increase in share of net assets is a non-cash adjustment to
increase/(decrease) the Group's ownership in the Joint Venture to 49% from
additional contributions by the JV Partner.
Nikkeli Greenland A/S had no contingent liabilities or commitments as at 30
June 2024 (30 June 2023: £nil).
9. Other (gains)/losses
6 months to 30 June 2024 Unaudited 6 months to 30 June 2023 Unaudited
£ £
(Gain)/loss on disposal of property, plant and equipment (8,551) 4,706
Valuation (losses) on fair value through profit and loss equity investments 1,062,500 -
(Note 7)
Other gains (49,510) (39,173)
1,004,439 (34,467)
10. Other income
6 months to 30 June 2024 Unaudited 6 months to 30 June 2023 Unaudited
£ £
Income from related parties 75,710 165,851
75,710 165,851
11. Earnings per Share
The calculation of earnings per share is based on a loss of £2,012,224 for
the six months ended 30 June 2024 (loss for six months ended 30 June 2023:
£659,135) and the weighted average number of shares in issue in the period
ended 30 June 2024 of 1,450,484,674 (six months ended 30 June 2023:
1,058,677,266).
No diluted earnings per share is presented for the six months ended 30 June
2024 or 30 June 2023 as the effect on the exercise of share options would be
anti-dilutive.
12. Borrowings
On 14 February 2023, the Company received funding for US$2,000,000 as a
convertible loan note. On the same date, the Company issued 5,800,000 Initial
Placement shares at nominal value and 3,798,911 Commencement shares issued a
price of £0.047382 per share to the convertible loan note holder.
On 25 April 2023, the Company mutually agreed to repay the US$2,000,000 amount
received for the convertible loan note.
13. Events after the Reporting Date
On 6 September 2024, the Company issued 583,333,327 Ordinary Shares at a price
of 0.3 pence per share, raising gross proceeds of £1.75 million.
14. Approval of interim financial statements
The Condensed interim financial statements were approved by the Board of
Directors on 27 September 2024.
** END **
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END IR BLGDCUSDDGSRRecent news on 80 Mile
See all newsREG - 80 Mile PLC - Agreement reached to drill Jameson Basin
AnnouncementREG - 80 Mile PLC - Update re Acquisition of FinnAust Mining Finland
AnnouncementREG - 80 Mile PLC - Proposed Disposal of Finland Copper Projects
AnnouncementREG - 80 Mile PLC - White Flame Energy Acquisition – Issue of Shares
AnnouncementREG - 80 Mile PLC - Operational Update on Greenswitch Ferrandina Plant
Announcement