REG - Alba Mineral Resrcs. - Final Results
05/05/2023 07:00
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RNS Number : 4976Y Alba Mineral Resources PLC 05 May 2023
Alba Mineral Resources plc
("Alba" or the "Company")
Final Results
Alba Mineral Resources plc (AIM: ALBA) is pleased to announce its Final
Results for the year ended 30 November 2022.
OVERVIEW
Positive outlook for Clogau-St David's Gold Mine
· Submitted updated version of Report to Inform a Habitat Regulations
Assessment ('HRA'), renewed applications for a water discharge permit, and a
European Protected Species licence ('EPSL') to Natural Resources Wales
('NRW').
· Most recently, received narrow set of comments from NRW on EPSL,
including relating to noise mitigation and biosecurity. Following generation
of further baseline data, that dataset and a full set of responses have now
been submitted to the regulator.
· Remain hopeful that NRW will decide shortly on the grant of the
permits so that dewatering activities at the primary target within the Lower
Llechfraith workings may proceed as soon as possible.
· Anticipate that the HRA will provide a framework for a more
streamlined and efficient process for future permitting applications.
· Encouraging site visit assisted by local member of the UK Parliament,
Liz Savile Roberts MP.
Developing plans to excavate further from Clogau's historic Waste Tip
· Current estimations of the higher-grade portion of the Waste Tip
indicate up to 4,000 tonnes of fine material could be available for processing
for gold.
· Intend to push forward with permitting and technical activities as
soon as the Lower Llechfraith dewatering permitting has been secured.
Laying groundwork at Gwynfynydd Gold Mine & Dolgellau Gold Exploration
Project
· Advancing plans for more exploration work to define resources in
previously unmined areas.
· Plans to fly a high-resolution UAV aeromagnetic geophysical survey in
July to refine targets for follow up groundwork.
Surrendered Limerick Base Metals Project
· Exploration drilling could not be progressed during 2022 as planned
due to landowner access issues.
Investee company GreenRoc Mining plc fast-tracking development of advanced
graphite and ilmenite projects
· Near threefold increase in the Resource for the key Amitsoq Island
Deposit, with the total graphite content rising from 1.63Mt to 4.71Mt.
· Confirmed that graphite concentrate from Amitsoq is "very suitable"
for the processes by which spherical graphite is produced for the EV sector.
· Further ecological and other studies in the field at the Thule Black
Sands Ilmenite Project, which will feed into the development of an EIA for the
project.
· Appointed Danish geologist and Greenland expert Stefan Bernstein as
CEO.
· Feasibility studies underway at Amitsoq as GreenRoc moves towards a
Mining Licence application and seeks to progress discussions with interested
industry and offtake partners in the coming months.
Ongoing advances at Horse Hill Developments Ltd investee company
· Formal consent for the recompletion of the Horse Hill-2z well into a
water reinjection well.
· Plans for a 3D seismic survey and possible drilling of a new well in
a proposed new farm-in arrangement.
Notable corporate activities
· Chairman increased holding to +48 million ordinary shares in Alba and
indicated plan to make further investments in the coming year.
· Appointed gold supply chain expert, Vivien Johnston Glass, to
maximise the commercial opportunities presented by exceptional Welsh gold
project.
· Completed the acquisition of the remaining 10% of the Clogau Project
not owned by Alba, taking ownership to 100%.
· Successful placing in November 2022, raising £500,000 before issue
costs.
· Remain focused on securing one or more additional complementary
assets to help drive serious value and growth for shareholders into the
future.
CHAIRMAN'S STATEMENT
Our overall objective is to unearth hidden value from previously drilled or
mined projects and to this end we are advancing multiple projects in the UK
including the Clogau-St David's Gold Mine ("Clogau" or the "Clogau Project"),
the Gwynfynydd Gold Mine and the Dolgellau Gold Exploration Project.
Additionally, we hold significant stakes in two investee companies: GreenRoc
Mining plc ("GreenRoc"), a Greenland-dedicated listed vehicle, spun out of
Alba to fast-track the development of its advanced graphite and ilmenite
projects; and Horse Hill Developments Ltd ('Horse Hill'), a UK based oil
producer.
Our share price performance this year has certainly been hit by the ongoing
delays in securing the environmental permits we need at Clogau so that we can
proceed with our planned work activities at our primary exploration and
development target in the Lower Llechfraith workings. We first applied for
these permits in early 2021, and so it is inevitable that a delay of now more
than two years would cause some disquiet in the market.
After we took Clogau over in 2018, we had a very good run for two to three
years of securing on a timely basis the ongoing permits required for our
exploration work. This enabled us to undertake substantial drilling
programmes both from surface and underground, to roll out extensive regional
exploration programmes over several miles of the Dolgellau Gold Field and to
carry out two successful pitting and sampling campaigns over the historic
waste tip at Clogau. Unfortunately, since then our exploration activities,
the objective of which has always been to discover sufficient resources of
gold to justify making a decision to reopen Clogau for commercial production,
have been on hold as the competent regulator has determined that a full
Habitat Regulations Assessment (or "HRA") of the entire mining project at
Clogau would be required before any further permits could be considered.
However, we hope that we are now entering the final straight of this process
and that we will be able to get on with our work activities again in the near
future.
In January 2022, I purchased over 10 million ordinary shares in the Company on
market at an average price of 0.1475p, paying consideration of around
£15,000. Following these purchases, which were made into an ISA, I now hold
over 48 million ordinary shares in Alba, representing around 0.68 per cent of
its issued share capital. Although Alba management's ability to invest in Alba
shares is restricted for large parts of the year by the prevalence of "close
periods" for share dealings, I hope to be able to make further investments in
the coming year to demonstrate my steadfast belief in the inherent value of
the Company's assets and prospects.
This year we have continued to focus on Clogau, where our objective remains to
identify sufficient grades and quantities of gold to support the restart of
commercial operations at the mine and take advantage of the strong gold
price. Welsh gold occupies a unique place in the gold market, putting us in
a good position to pursue commercialisation opportunities such as entering
into a joint venture with a luxury international brand for the production of
bespoke or high-end jewellery products or producing Welsh gold coins or bars
for the investment market. To that end, we have been working with a gold
supply chain expert, Vivien Johnston Glass, as we seek to maximise
the commercial opportunities presented by this exceptional project. Vivien
has a strong commitment to ethics and sustainability and a great deal of
experience in the establishment of a robust chain of custody. These elements
will be key to our ability to prove the unique provenance of our gold and
thereby justify the high prices we expect to be able to secure for our
products.
During the year, we completed the acquisition of the remaining 10% of the
Clogau Project not owned by Alba, taking our ownership to 100%. This is a
measure of our confidence in the long-term prospects for Clogau. The 10%
minority stake had been free carried to commercial production and the vendors
also held a 4% net smelter return royalty over the Project, so acquiring both
the free carried interest as well as buying back 75% of the royalty greatly
improves the economic viability of the project for Alba.
Since mid-2018, we have undertaken circa 3,500 metres drilling from surface
and underground at Clogau resulting in the identification of several
high-priority development targets. New discoveries include the Upper Lode in
the Llechfraith Payshoot and the New Branch Lode in the Main Lode System. As
shareholders will be aware, the competent regulator Natural Resources Wales
('NRW') turned down our permit applications in 2021 which sought permission to
dewater the Llechfraith Shaft and associated workings. Considerable ecological
work by our technical team and ecological advisers has continued during 2022
both to address ongoing issues raised by NRW during its review of our
applications and to feed into the overarching HRA for Clogau, which NRW
notified us in 2021 that it wished to undertake.
With the kind assistance of our local member of the UK Parliament, Liz Savile
Roberts MP, we held a site visit at the mine in September 2022. This was
attended by Liz along with our Welsh Parliament (Senedd Cymru) representative,
Mabon ap Gwynfor MS, a number of representatives from NRW as well as local
Councillors and other interested parties. Following that very positive
meeting, in October 2022 we submitted to NRW an updated version of our Report
to Inform a Habitat Regulations Assessment, together with renewed applications
for a water discharge permit and a European Protected Species licence ("EPSL")
in respect of the proposed dewatering exercise and subsequent safety and
exploratory works at the Company's primary target within the Lower Llechfraith
workings at Clogau. As reported in late March, the Company received comments
from NRW covering a relatively narrow set of points relating to the EPSL
including noise mitigation measures, biosecurity and the duration of the
proposed exclusion measures for bats. Following the generation of some
further baseline data in respect of noise, we have now submitted that data and
a full set of responses to NRW's comments. The Company is hopeful,
therefore, that NRW will be able to proceed to a decision shortly on the grant
of the permits so that our dewatering activities may proceed as soon as
possible.
At the same time, we are developing plans to excavate further from Clogau's
historic waste tip (the "Waste Tip"). The Phase 2 programme at the Waste Tip
achieved strong concentrate grades of up to 1,000 g/t, with an average across
the five pits of 503 g/t. What is more, independent assaying has confirmed
that the overall head grade of the fine material taken from the Waste Tip
averages 1.7 g/t, which is a significant upgrade on the average grade achieved
from sampling the same material prior to the processing stage. This is
unsurprising given what we know about the nuggety effect of the gold at
Clogau, and it bodes well for the commercial viability of mining the Waste
Tip. Current estimations of the higher-grade portion of the Waste Tip
indicate an in-situ tonnage of approximately 11,000 tonnes, of which up to
4,000 tonnes of fine material (<20mm) could be available for processing for
gold. As reported in March, as soon as the Lower Llechfraith dewatering
permitting has been secured and the HRA completed, we intend to push forward
with our permitting and technical activities in relation to the Waste Tip.
At our other exploration licences, which host the Gwynfynyndd Gold Mine
located north of Clogau and the wider 188 km² Dolgellau Gold Exploration
Project ("DGEP"), we are laying the groundwork to advance plans for more
exploration work to define resources in previously unmined areas. These
include the new high-grade regional gold target, Hafod Owen, which we
identified in July 2021, with grab samples grading up to 24 g/t.
We plan to fly a high-resolution UAV (unmanned aerial vehicle) aeromagnetic
geophysical survey over key targets within the DGEP to pinpoint the bedrock
sources of geochemical anomalies and refine targets for follow up groundwork,
including drilling. The timing for the survey was delayed in 2022 due to a
backlog of applications to the Civil Aviation Authority ("CAA"). At the time
of writing, the latest estimated timetable from our contractor UAVE Ltd is
that they are hopeful the CAA approvals will be through in time for the
carrying out of the survey operations in July of this year.
Just after the year end, we surrendered our Limerick Base Metals Project.
Located in the Irish Ore Field, targets identified for exploration drilling
could not be progressed during 2022 as planned, due to landowner access
issues. Alternative drill collar locations proved not to be economically
viable and, as the Group could not progress its exploration activities
further, under the terms of the licence we were obliged to surrender the
licence.
In late 2021 we successfully spun out our portfolio of Greenlandic assets into
GreenRoc Mining plc, a new AIM-quoted company which raised a gross amount of
£5.1 million on its IPO and which now owns 100% of those Greenland assets.
Our strategy of creating a Greenland-focused vehicle has been validated by the
excellent progress made by GreenRoc throughout 2022. Highlights have
included:
- A highly successful follow-up drilling campaign in the summer of
2022, which culminated in the announcement of a near threefold increase in the
Resource for the Amitsoq Island Deposit, with the total graphite content
rising from 1.63Mt to 4.71Mt.
- A revised average Resource grade of 20.41% C(g) that puts Amitsoq
in a very select group of just two advanced graphite projects globally which
have average grades of more than 20% C(g), the other one being the Vittangi
deposit owned by Talga Group (ASX: TLG), which has a market cap of circa £360
million.
- The completion of advanced test work by specialist consultants
which confirmed that graphite concentrate from Amitsoq is "very suitable" for
micronisation and spheronisation, those being the processes by which spherical
graphite is produced for the electric vehicle (or "EV") sector.
- At the Thule Black Sands ("TBS") Ilmenite Project, the completion
of further ecological and other studies in the field which will feed into the
development of an Environmental Impact Assessment ("EIA") for the project, a
key component for a future Mining Licence application.
- The appointment of Stefan Bernstein as GreenRoc's CEO. A Danish
geologist with a comprehensive understanding of the Greenland's geological
landscape and decades-long experience in Greenland's mining sector, Stefan is
ideally equipped to drive GreenRoc forward and to achieve its goal of
achieving commercial production from one of more of its assets, with the focus
very much being on GreenRoc's flagship asset, Amitsoq.
The substantially upgraded Resource for Amitsoq will underpin the feasibility
studies GreenRoc will be carrying out this year as it moves towards a Mining
Licence application and seeks to progress discussions with interested industry
and offtake partners in the coming months.
At the year end, Alba had a 54% stake in GreenRoc such that GreenRoc is fully
consolidated in these results. Since year end, funding requirements to push
the Amitsoq project forward have meant a dilution in Alba's stake in GreenRoc
to 44.67%, but we remain by some distance the largest shareholder and remain
heavily involved in the strategic direction and development of the company.
News from the Horse Hill oil field, in which we have an investment of 11.675%
via our holding in Horse Hill Developments Limited ("HHDL"), included formal
consent for the recompletion (i.e., conversion) of the Horse Hill-2z well into
a water reinjection well. More recently, plans have been announced for a 3D
seismic survey, and possible drilling of a new well, at Horse Hill in a
proposed new farm-in arrangement. The proposed transaction is stated to be
subject to the satisfaction of a number of conditions, including the consent
of all HHDL's shareholders, including Alba, and as such we intend to consider
closely the merits of the proposed transaction for Alba and its shareholders.
At the balance sheet date, we reviewed the valuation of Alba's investment in
HHDL and judged that the asset value should be written down to £2.6 million,
which aligns with the valuation attributed to its own interest by HHDL's
majority shareholder.
Financial Review
The results as reported for 2022 include both Alba Mineral Resources plc and
GreenRoc Mining plc, as Alba's 54% shareholding at the year end requires that
company to be consolidated as part of the Alba Group. GreenRoc Mining plc
reports separately on its own financial results, which can be found on its
website www.greenrocmining.com (http://www.greenrocmining.com) .
We achieved a successful placing in November 2022, raising £500,000 before
issue costs. For a detailed financial review, see the Strategic Report which
follows this statement.
Outlook
We continue to be very bullish about the prospects for our 100% owned Welsh
gold assets. Although the ongoing hiatus in the planned in-mine work
activities at Clogau has been frustrating, we believe that we are finally
approaching a conclusion to the current ecological permitting process and that
the HRA, once concluded, can provide a framework for a more streamlined and
efficient process for future permitting applications.
In terms of our non-operating assets, most importantly our investment in
GreenRoc, substantial progress has been made at the flagship Amitsoq graphite
project over the past 12 months which is shaping up to be a truly world-class
asset. I can personally testify to the immense interest in it from potential
international strategic investors and industry partners with whom I have
engaged in my capacity as GreenRoc Chairman over the past several months. In
this way, our decision to spin out our Greenland assets into a new,
Greenland-focused listed vehicle has already shown its worth, and all that is
needed now is for the market to properly recognise what, to me, is a greatly
undervalued asset.
At the same time as developing our existing assets and supporting our investee
companies, we are also focused on securing one or more additional
complementary assets for Alba which will help drive serious value and growth
for shareholders into the future.
Finally, I would like to take this opportunity to thank the Board and our
management team for their continued hard work and dedication over the course
of the year and to thank our shareholders for their ongoing support. I look
forward to continuing our work in the year ahead and delivering on our
overriding objective, which is to generate significant value for all our
shareholders.
George Frangeskides
Executive Chairman
4 May 2023
EXTRACTS FROM THE STRATEGIC REPORT
FINANCIAL REVIEW
Income Statement
Group operating losses of £1,623,000 (before impairments) compared to
£1,067,000 in 2021 reflects a full year of admin expenses for GreenRoc Mining
plc, meaning that Alba Group results show the costs of two AIM-listed
companies, with their necessary costs - fees, professional advisers and
Boards. Alba company's operating loss remained at a similar level of
~£800,000 year on year.
GreenRoc Mining plc publishes its own Report and Accounts, available on their
website and via RNS, with further detail. The impairment charge for the year
relates to the Greenlandic project Inglefield Land (£199,000) plus the write
down of the Company's investment in Horse Hill Developments Limited by
£785,000.
Balance sheet
Group net assets have decreased from £12.9 million to £11.3 million. The
drop reflects the impairment of Inglefield Land by £0.2m, the investment in
HHDL by £0.8m and the relative increase in costs in the income statement of
£0.6 million.
The increase in group intangible assets from £6.1 million to £8.5 million is
direct cash spend on projects of £2.4 million.
CONSOLIDATED INCOME STATEMENT
FOR THE YEAR ENDED 30 NOVEMBER 2022
Note 2022 2021
£'000 £'000
Other income - 23
Administrative expenses 4 (1,623) (1,067)
Impairment expense (984) -
Operating loss (2,607) (1,044)
Revaluation of financial liability 16 2 (180)
Revaluation of investment 11 - (615)
Finance costs - (1)
Loss for the year before tax (2,605) (1,840)
Taxation 7 - -
Loss for the year (2,605) (1,840)
Attributable to:
Equity holders of the parent (2,039) (1,699)
Non-controlling interests (566) (141)
(2,605) (1,840)
Earnings per ordinary share
Basic and diluted (pence) 8 (0.031) (0.027)
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 NOVEMBER 2022
2022 2021
£'000 £'000
Loss after tax (2,605) (1,840)
Items that may subsequently be reclassified to profit or loss:
- Foreign exchange movements - (1)
Total comprehensive income (2,605) (1,841)
Total comprehensive income attributable to:
Equity holders of the parent (2,039) (1,700)
Non-controlling interests (566) (141)
(2,605) (1,841)
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
30 NOVEMBER 2022
Note 2022 2021
£'000 £'000
Non-current assets
Property, plant and equipment 9 150 137
Intangible fixed assets 10 8,450 6,110
Investments - Horse Hill Developments Limited 11 2,600 3,385
Total non-current assets 11,200 9,632
Current assets
Trade and other receivables 13 129 178
Cash and cash equivalents 14 456 3,948
Total current assets 585 4,126
Current liabilities
Trade and other payables 15 (464) (671)
Financial liabilities 16 - (221)
Total current liabilities (464) (892)
Net current assets 121 3,234
Net assets 11,321 12,866
Capital and reserves
Share capital 17 5,076 5,005
Share premium 10,461 9,877
Warrant reserve 1,187 1,425
Dilution of ownership reserve 5 991 991
Other reserves 136 89
Retained losses (8,929) (7,421)
Foreign currency reserve 168 168
Equity attributable to equity holders of the parent 9,090 10,134
Non-controlling interests 18 2,231 2,732
Total equity 11,321 12,866
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 NOVEMBER 2022
Share Share Warrant Warrants to be Dilution of Other Retained Foreign currency Attributable to Non-controlling Total
capital premium reserve issued reserve ownership reserve reserves losses reserve equity holders interests
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
At 30 November 2020 4,984 9,360 1,287 416 - - (6,153) 169 10,063 (16) 10,047
Loss for the year - - - - - - (1,699) - (1,699) (141) (1,840)
Other comprehensive income - - - - - - - (1) (1) - (1)
Total comprehensive income for the year - - - - - - (1,699) (1) (1,700) (141) (1,841)
Shares and warrants issued 7 162 416 (416) - - - - 169 - 169
Shares issued in exchange for ownership interests (not resulting in change in 14 355 - - - - - - 369 7 376
control)
Equity settled share-based payments - - 153 - - - - - 153 - 153
Transfer on exercise or expiry of warrants - - (431) - - - 431 - - - -
Dilution of ownership (not resulting in change in control) - - - - 991 - - - 991 2,806 3,797
Subsidiary equity settled share-based payments - - - - - 89 - - 89 76 165
Total transactions with owners 21 517 138 (416) 991 89 431 - 1,771 2,889 4,660
At 30 November 2021 5,005 9,877 1,425 - 991 89 (7,421) 168 10,134 2,732 12,866
Loss for the year - - - - - - (2,039) - (2,039) (566) (2,605)
Other comprehensive income - - - - - - - - - - -
Total comprehensive income for the year - - - - - - (2,039) - (2,039) (566) (2,605)
Shares and warrants issued 71 584 176 - - - - - 831 - 831
Equity settled share-based payments - - 87 - - - - - 87 - 87
Transfer on exercise or expiry of warrants - - (501) - - - 501 - - - -
Subsidiary equity settled share-based payments - - - - - 47 30 - 77 65 142
Total transactions with owners 71 584 (238) - - 47 531 - 995 65 1,060
At 30 November 2022 5,076 10,461 1,187 - 991 136 (8,929) 168 9,090 2,231 11,321
CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 30 NOVEMBER 2022
Note 2022 2021
£'000 £'000
Cash flows from operating activities
Operating loss (2,607) (1,044)
Depreciation 9 7 5
Fees settled in shares - 32
Impairment 984 -
Loss on disposal of oil & gas asset - 9
Share based payment charges 228 237
Foreign exchange revaluation adjustment - (1)
(Decrease)/increase in creditors (208) 386
Decrease/(increase) in debtors 13 49 (110)
Net cash used in operating activities (1,547) (486)
Cash flows from investing activities
Payments for exploration expenditure (2,417) (2,544)
Payments for tangible fixed assets (20) (31)
Net cash used in investing activities (2,437) (2,575)
Cash flows from financing activities
Proceeds from the issue of shares and exercise of warrants 522 1,295
Costs of issue (30) (72)
Proceeds from the issue of shares and warrants - GreenRoc - 5,075
IPO transaction costs - (800)
Finance expense - (1)
Net cash generated from financing activities 492 5,497
Net increase/(decrease) in cash and cash equivalents (3,492) 2,436
Cash and cash equivalents at beginning of period 3,948 1,512
Cash and cash equivalents at end of year 14 456 3,948
Significant non-cash transactions in the period not reflected above are:
Consideration of £339,000 in shares and warrants for the exercise of a
put-and-call option over the 10% of Clogau Gold Project not owned by the Group
(a financial instrument valued at £214,000) plus the purchase of part of a
royalty attached to the project and settlement of some historic debts. See
Note 5 for details.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2022
Note 2022 2021
£'000 £'000
Cash flows from operating activities
Operating loss (1,341) (265)
Fees settled in shares - 32
Impairment expense 785
Loss on disposal of oil & gas asset 5 - 9
Share based payment charge 87 153
Movement in the expected credit loss provision for loans to subsidiaries 15 (454)
Foreign exchange revaluation adjustment - 62
(Decrease)/increase in creditors (2) (98)
Decrease/(increase) in debtors (7) (72)
Net cash used in operating activities (463) (633)
Cash flows from investing activities
Loans granted to subsidiaries 12 (370) (1,925)
Loan repayments received from subsidiaries - 500
Net cash used in investing activities (370) (1,425)
Cash flows from financing activities
Proceeds from the issue of shares and exercise of warrants 522 1,295
Costs of issue (30) (72)
Net cash generated from financing activities 492 1,223
Net increase/(decrease) in cash and cash equivalents (341) (835)
Cash and cash equivalents at beginning of period 663 1,498
Cash and cash equivalents at end of year 14 322 663
Significant non-cash transactions in the period not reflected above are:
Consideration of £339,000 in shares and warrants for the exercise of a
put-and-call option over the 10% of Clogau Gold Project not owned by the Group
(see Note 5 for more details).
The Accounting Policies and Notes on pages 34 to 58 form part of these
financial statements.
1. ACCOUNTING POLICIES AND BASIS OF PREPARATION
Alba Mineral Resources plc is a public limited company incorporated and
domiciled in England & Wales, whose shares are publicly traded on the AIM
market of the London Stock Exchange plc. The registered office address is
6(th) Floor 60 Gracechurch Street, London, United Kingdom, EC3V 0HR. The
principal accounting policies applied in the preparation of these financial
statements are set out below. These policies have been applied consistently to
all the years presented.
a. Basis of preparation
These consolidated financial statements of Alba Mineral Resources plc have
been prepared in accordance with UK-adopted international accounting standards
("IFRSs") as they apply to the Group for the year ended 30 November 2022 and
with the Companies Act 2006. Numbers have been rounded to £'000.
The consolidated financial statements have been prepared on the historical
cost basis, save for the revaluation of certain financial assets and
liabilities at fair value.
The preparation of financial statements requires the use of certain critical
accounting estimates. It also requires management to exercise its judgement
in the process of applying the group's 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 2.
New or amended Standards and interpretations that became effective during the
year ended 30 November 2022 had no impact on the Group accounts.
New standards, amendments, and interpretations not yet effective
Certain new accounting standards and interpretations have been published that
are not mandatory for 30 November 2022 reporting periods and have not been
early adopted by the Group. These standards include:
· Amendments to IAS 1 Presentation of Financial Statements
(effective 1 Jan 2023) - Disclosure of Accounting Policies
· Amendments to IAS 1 Presentation of Financial Statements
(effective 1 Jan 2024) - Classification of Liabilities as Current or
Noncurrent
· Amendments to IAS 8 Accounting Policies (effective 1 Jan 2023) -
Definition of Accounting Estimates
· Amendments to IAS 12 Income Taxes (effective 1 Jan 2023) -
Deferred Tax related to Assets and Liabilities arising from a Single
Transaction
· Amendments to IAS 16 Property, Plant and Equipment (effective 1
Jan 2022) - Proceeds before intended use
· Amendments to IFRS 16 Leases (effective 1 Jan 2024) - Lease
liability in a sale and leaseback
· IFRS 17 and Amendments Insurance contracts (effective 1 Jan 2023)
· Amendments to IAS 37 Onerous Contracts (effective 1 Jan 2022) -
Cost of Fulfilling a Contract
The Directors do not anticipate that the adoption of these standards or
amendments will have a material impact on the financial statements of the
Company and the Group in the period of initial application or in future
reporting periods. Other amendments, standards and interpretations are in
issue, both endorsed and not yet endorsed, but they are not relevant to the
Group and as such they are not commented on.
b. Going concern
Based on financial projections prepared by the Directors, the Group's current
cash resources are insufficient to enable the Group to meet its recurring
outgoings and projected exploration expenditure for the entirety of the next
twelve months. The Directors have prepared cash flow forecasts to 30 November
2024 which take into account planned exploration spend, costs and external
funding. The need for external funding is a material uncertainty that may cast
doubt on the Group's ability to continue as a going concern. At this stage
as an explorer the Group does not have a steady income stream and is reliant
on external funding sources such as capital raisings or asset transactions to
fund activities. The nature of these is ad-hoc and as such the Group does not
carry a cash balance sufficient for 12 months of expenditure. However, the
Board has a reasonable expectation that the Group will continue to be able to
meet its commitments for the foreseeable future by raising funds when required
from the equity capital markets and based on the following:
· The Group has a strong track record in sourcing external funding.
· Forecasts contain a level of discretionary spend such that in the
event that cash flow becomes constrained action can be taken to enable the
Group to operate within available funding. The Group demonstrated this during
the Covid-19 pandemic when sourcing capital was uncertain.
· The Group and Company may also consider future joint venture
funding arrangements in order to share the costs of the development of its
exploration assets, or to consider divesting of certain of its assets and
realising cash proceeds in that way in order to support the balance of its
exploration and investment portfolio.
For these reasons the Directors continue to adopt the going concern basis of
accounting in preparing the financial statements.
c. Basis of consolidation
The consolidated financial statements incorporate the financial statements of
the Company and companies controlled by the Company, the Subsidiary Companies,
drawn up to 30 November each year.
Control is recognised where the Company has the power to govern the financial
and operating policies of an investee entity so as to obtain benefits from its
activities. Subsidiaries are fully consolidated from the date on which control
is transferred to the Group. They are deconsolidated from the date that
control ceases. The results of subsidiaries acquired or disposed of during the
year are included in the consolidated income statement from the effective date
of acquisition or up to the effective date of disposal, where appropriate.
Where necessary, adjustments are made to the financial statements of
subsidiaries to bring the accounting policies used into line with those used
by the Group. All intra-group transactions, balances, income and expenses are
eliminated on consolidation.
Non-controlling interests in the net assets of consolidated subsidiaries are
identified separately from the Group's equity therein.
Changes in ownership interests in subsidiaries without change of control
Transactions with non-controlling interests that do not result in loss of
control are accounted for as equity transactions - that is, as transactions
with the owners in their capacity as owners. The difference between fair value
of any consideration paid and the relevant share acquired of the carrying
value of net assets of the subsidiary is recorded in equity. Gains or losses
on disposals to non-controlling interests are also recorded in equity within
the dilution of ownership reserve.
Non-controlling interests consist of the amounts of those interests at the
date of the original business combination and the minority's share of changes
in equity since the date of the combination.
d. Foreign currency
For the purposes of the consolidated financial statements, the results and
financial position of each Group entity are expressed in pounds sterling,
which is the presentation currency for the consolidated financial statements.
In preparing the financial statements of the individual entities, transactions
in currencies other than the entity's functional currency (foreign currencies)
are recorded at the rates of exchange prevailing at the dates of the
transactions. At each reporting date, monetary items denominated in foreign
currencies are retranslated at the rates prevailing at the reporting date.
Exchange differences arising are included in profit or loss for the period.
For the purposes of preparing consolidated financial statements, the assets
and liabilities of the Group's foreign operations are translated at exchange
rates prevailing on the reporting date. Income and expense items are
translated at the average exchange rates for the period. Gains and losses from
exchange differences so arising are shown through the Consolidated Statement
of Changes in Equity.
e. Share based payments
Share-based compensation benefits are made on an ad-hoc basis on the
recommendations of the Remuneration Committee or via the Enterprise Management
Incentive Scheme where the employee meets the qualifying conditions. The fair
value of warrants or options granted is recognised as an employee benefits
expense, with a corresponding increase in the warrant reserve. The total
amount to be expensed is determined by reference to the fair value of the
options granted:
o including any market performance conditions (eg the entity's share price)
o excluding the impact of any service and non-market performance vesting
conditions (eg profitability, sales growth targets and remaining an employee
of the entity over a specified time period), and
o including the impact of any non-vesting conditions (eg the requirement for
employees to save or hold shares for a specific period of time).
The total expense 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 period, the entity revises its estimates of the number of options
that are expected to vest based on the non-market vesting and service
conditions. It recognises the impact of the revision to original estimates, if
any, in profit or loss, with a corresponding adjustment to the warrant
reserve.
f. Non-current assets
Intangible assets: Deferred exploration and evaluation costs
Pre-licence costs are expensed in the period in which they are incurred.
Expenditure on licence renewals and new licence applications covering an area
previously under licence are capitalised in accordance with the policy set out
below.
Once the legal right to explore has been acquired, exploration costs and
evaluation costs arising are capitalised on a project-by-project basis,
pending determination of the technical feasibility and commercial viability of
the project. Costs include appropriate technical and administrative expenses.
If a project is successful, the related expenditures will be reclassified as
development and production assets and amortised over the estimated life of the
commercial reserves. Prior to this, no amortisation is recognised in respect
of such costs. When all licences comprising a project are relinquished, a
project abandoned, or is considered to be of no further commercial value to
the Company, the related costs will be written off to administrative expense
within profit or loss. Deferred exploration costs are carried at historical
cost less any impairment losses recognised.
Where the Group has entered into a farm out agreement, the Group does not
record any expenditure made by the farmee on its account. It also does not
recognise any gain or loss on its exploration and evaluation farm-out
arrangements but redesignates any costs previously capitalised in relation to
the whole interest as relating to the partial interest retained. Any cash
consideration received directly from the farmee is credited against costs
previously capitalised in relation to the whole interest with any excess
accounted for as a gain on disposal.
Where the Group enters into a farm in agreement, the Group recognises all
expenditure which it incurs under that agreement, with the expenditure being
either capitalised or expensed in accordance with the policy detailed above.
Property, plant and equipment
Land is shown at cost and is not depreciated as it is not a wasting asset. The
land owned by the Group is an integral part of access to one of the Group's
projects and as such its value is reviewed annually as part of the impairment
review of that project value as a whole.
Plant and equipment is stated at historical cost less accumulated depreciation
and impairment. Historical cost includes expenditure that is directly
attributable to the acquisition of the items.
Depreciation is calculated on a straight-line basis to write off the net cost
of each item of property, plant and equipment (excluding land) over their
expected useful lives as follows:
o Plant and vehicles - 10 years
o Computer equipment - 3 years
The residual values, useful lives and depreciation methods are reviewed, and
adjusted if appropriate, at each reporting date. An item of property, plant
and equipment is derecognised upon disposal or when there is no future
economic benefit to the consolidated entity. Gains and losses between the
carrying amount and the disposal proceeds are taken to profit or loss. Any
revaluation surplus reserve relating to the item disposed of is transferred
directly to retained profits.
Investment in subsidiaries: Investment in subsidiaries, comprising equity
instruments and capital contributions, are recognised initially at cost less
any provision for impairment.
g. Financial instruments
Financial assets and financial liabilities are recognised in the statement of
financial position when the Group becomes a party to the contractual
provisions of the instrument. The classification is dependent on the business
model adopted for managing the financial assets and the contractual terms of
the cash flows expected to be derived from the assets.
The Group classifies its financial instruments as follows:
Financial assets
Trade and other receivables Amortised cost
Loans to subsidiaries (Company only) Amortised cost
Investments At fair value through profit or loss (FVPL)
Financial liabilities
Trade and other payables Amortised cost
Borrowings Amortised cost
Other borrowings Amortised cost
Derivative financial instrument At fair value through profit or loss (FVPL)
Trade and other receivables: Trade and other receivables are held for the
collection of contractual cash flows and are classified as being measured at
amortised cost. They are recognised initially at fair value and subsequently
measured at amortised cost using the effective interest method less provision
for impairment.
Loans to subsidiaries: Long-term loans to subsidiaries, other than capital
contributions, are held for the collection of contractual cash flows and are
classified as being measured at amortised cost, net of provision for
impairment. Impairment is initially based on the expected lifetime credit loss
as applied to the portfolio of loans. The loans are interest free and have no
fixed repayment terms. As such the loans are assessed as being credit impaired
on inception and lifetime expected credit losses are recognised with the
amount of provision being recognised in the profit or loss.
A loan will be subject to impairment review if there is an indicator of
impairment, such as the impairment of the value of the deferred exploration
intangible asset within the relevant subsidiary. A loan is fully impaired when
the relevant subsidiary recognises an impairment of its deferred exploration
expenditure, such that the subsidiary is not expected to be able to repay the
loan from its existing assets.
Investments: Investments in unlisted equity instruments whose fair value
cannot be reliably measured are recognised initially at investment cost. Any
shareholder loans made are included in the investment cost. Where a value can
be reliably measured the investment is subsequently recognised at fair value
through profit and loss. Information about the methods and assumptions used in
determining fair value is provided in Note 11.
Trade and other payables: Trade and other payables are not interest bearing
and are recognised initially at fair value and subsequently measured at
amortised cost.
Derivative financial instrument
A derivative financial instrument is recognised for the 10% call option over
the remaining shares in the Clogau gold project not owned by the Group. This
has been valued based on management's best estimate and classified as fair
value through profit and loss so that any future change in the valuation of
the liability will be recognised through the profit and loss account. See Note
16 to the Accounts.
A 4% net smelter return royalty was also agreed as part of the consideration.
The Company has a buy-back right in respect of any proposed sale of the
royalty. No value has been attributed to this right in these accounts as it
cannot be quantified due to uncertainty in reaching commercial production and
what the resulting royalty quantum would be likely to be
Borrowings: Initially recognised at fair value net of any transaction costs
directly attributable to the issue of the instrument. Such interest-bearing
liabilities are then subsequently measured at amortised cost using the
effective interest rate method. Interest expense includes initial transaction
costs and any premium payable on redemption, as well as any interest or coupon
payable while the liability is outstanding.
Liability components of convertible loan notes are measured as described
further below.
Other borrowings: recognised initially at fair value and subsequently measured
at amortised cost.
Leases: The Group does not have any leases within the scope of IFRS16.
h. Equity
Share capital represents the nominal value of equity shares, both ordinary and
preference.
Share premium represents the excess over nominal value of the fair value of
consideration received for equity shares, net
of expenses of the share issue.
Warrant reserve represents proceeds from the issue of extant warrants.
Warrants to be issued reserve held proceeds from the issue of warrants
announced on 25 November 2020 but issued post-year end, on 1 December 2020.
Dilution of ownership reserve represents the difference between the fair value
of any consideration paid and the relevant share of the fair value of net
assets acquired in a dilutive transaction where control is retained.
Other reserves represents the proceeds from the issue of warrants by GreenRoc
Mining plc attributable to the equity holders of the group.
Foreign currency reserve holds gains/losses arising on retranslating the net
assets of the Group into pounds sterling.
i. Taxation
The charge for taxation is based on the profit or loss for the year and takes
into account deferred tax. The tax expense for the period comprises current
and deferred tax. Tax is recognised in the income statement, except to the
extent that it relates to items recognised directly in equity. In this case
the tax is also recognised directly in other comprehensive income or directly
in equity, respectively.
The current income tax charge is calculated on the basis of the tax laws
enacted or substantively enacted at the end of the reporting period in the
countries where the Company operates and generates taxable income. Management
periodically evaluates positions taken in tax returns with respect to
situations in which applicable tax regulation is subject to interpretation. It
establishes provisions where appropriate on the basis of amounts expected to
be paid to the tax authorities.
Deferred tax is the tax expected to be payable or recoverable on differences
between the carrying amounts of assets and liabilities in the financial
statements and the corresponding tax bases used in the computation of taxable
profit or loss, and is accounted for using the liability method.
Deferred tax assets are only recognised to the extent that it is probable that
future taxable profit will be available in the foreseeable future against
which the temporary differences can be utilised.
Deferred income tax is recognised, using the liability method, on temporary
differences arising between the tax bases of assets and liabilities and their
carrying amounts in the financial statements. However, the 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. Deferred
income tax is determined using tax rates (and laws) that have been enacted, or
substantially enacted, by the end of the reporting period and are expected to
apply when the related deferred income tax asset is realised, or the deferred
income tax liability is settled.
Deferred income 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 income tax assets and liabilities relate to
income taxes levied by the same taxation authority on either the taxable
entity or different taxable entities where there is an intention to settle the
balances on a net basis.
j. Segmental information
An operating segment is a distinguishable component of the Group which is
subject to risks and rewards that are different from those of other segments.
In the Group's current portfolio, the geographical location of exploration
projects provides the basis for grouping into segments.
Operating segments are reported in a manner consistent with internal reporting
provided to the chief operating decision-maker. The chief operating
decision-maker, who is responsible for allocating resources and assessing
performance of the operating segments, has been identified as the Board of
Directors of the Company.
2 CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS
The preparation of the financial statements in conformity with generally
accepted accounting practice requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities as well
as the disclosure of contingent assets and liabilities at the reporting date
and the reported amounts of revenues and expenses during the reporting period.
Actual outcomes could differ from those estimates.
Estimates and judgements are continually evaluated and are based on historical
experience and other factors, including expectations of future events that are
believed to be reasonable under the circumstances. The areas of judgement that
have the most significant effect on the amounts recognised in the financial
statements are as follows:
i) JUDGEMENTS
Capitalisation of exploration and evaluation costs - £2,417,000
The capitalisation of exploration costs relating to the exploration and
evaluation phase requires management to make judgements as to the future
events and circumstances of a project, especially in relation to whether an
economically viable extraction operation can be established. In making such
judgements, the Directors take comfort from the findings from exploration
activities undertaken, the fact the Group intends to continue these activities
and that the Company expects to be able to raise additional funding to enable
it to continue the exploration activities.
Impairment assessment of exploration and evaluation costs - £8,450,000
At each reporting date, management make a judgment as to whether circumstances
have changed following the initial capitalisation and whether there are
indicators of impairment. If there are such indicators, an impairment review
will be performed which could result in the relevant capitalised amount being
written off to the income statement. For further details see Note 10
"Intangible Assets".
This balance includes £3,084,000 relating to the Clogau Gold Project. Despite
the delays in obtaining permissions for planned exploration on the Clogau Gold
Project, management do not judge the Exploration and Evaluation costs
associated with that project to be impaired at 30 November 2022. Exploration
is planned and budgeted for in 2023, the option is valid until February 2025
and the Group has no data at this point that suggests that the asset value is
unlikely to be recovered from successful development.
Accounting for investment in Horse Hill Developments Limited - £2,600,000
The Group and Company's investment in Horse Hill Developments Limited ("HHDL")
is in the form of equity and a shareholder loan. However, the Directors judge
that the loan is in substance part of the equity investment as governed by the
HHDL investment agreement. As such the loan element of the investment is
accounted for at fair value with movements in fair value being taken to profit
or loss (FVTPL).
The Group and Company's shareholding in HHDL is less than 20%. A director of
the Company is also a director of HHDL but does not act in an executive
capacity. At the balance sheet date HHDL had a majority shareholder with a
77.9% shareholding. The Directors judge that the Company does not have
significant influence over HHDL and that it should not be equity accounted for
as an associate.
Company only - Impairment assessment of investment in and loans to
subsidiaries - £8,505,000
In preparing the parent company financial statements, the Directors apply
judgement to decide if any, or all of the company's investments in (and where
applicable loans to) each of GreenRoc Mining plc, Aurum Mineral Resources
Limited, Dragonfire Mining Limited group and GMOW Gwynfynydd Limited are
impaired or not.
These companies have no source of funds other than their shareholders and the
ability of the companies to repay their inter-company debt and for the Company
to gain value from its investments in the companies is dependent on the future
success of the companies' exploration activities. In undertaking their review,
the Directors consider the outcome of their impairment assessment of the
relevant licences as detailed above.
The Directors have used the Expected Credit Loss model to make a general
provision against intercompany loans receivable based on historic credit
losses and current data. In applying the expected credit loss model, the
directors have judged that the loans to the subsidiaries were credit impaired
on inception. See Note 12 for further details.
ii) ESTIMATES
Carrying value of investment in Horse Hill Developments Limited - £2,600,000
The Company's investment in Horse Hill Developments Limited is carried at fair
value, as, in the judgement of the Directors, it has been possible to estimate
a reliable fair value for the investment. For further details of the valuation
see Note 11.
The Directors believe that the intrinsic value of the oil field has not been
diminished during the year but recognise that the majority owner's impairment
of part of that asset during 2022 is an indicator of impairment of the Group's
investment in HHDL and has performed an impairment review. As the majority
owner has access to more information for valuation purposes than the Group,
management has revalued the fair value at 30 November 2022 to align with the
fair value applied by the majority owner.
3. ANALYSIS OF SEGMENTAL INFORMATION
The Group currently only has one primary reporting business segment,
exploration and development. The Board of the Company evaluates the business
on a sector basis, the two sectors being mining and oil and gas. The group
exploration assets and investments along with capital expenditures are
presented on this basis below:
2022 2021
£'000 £'000
Total assets
Exploration and development 8,600 6,247
Oil and gas 2,600 3,385
Current assets 585 4,126
11,785 13,758
Capital expenditure
Exploration and plant 2,436 2,615
The Group's primary business activities operate in three different
geographical areas (and the Group has an investment in a fourth area) and the
group exploration assets and investments along with capital expenditures are
presented on the basis of geographical segments below:
2022 2021
£'000 £'000
Total assets
Republic of Ireland (fully impaired) - -
Greenland 5,343 3,451
England & Wales 6,442 10,307
11,785 13,758
2022 2021
£'000 £'000
Capital expenditure
Greenland 2,091 1,763
England & Wales 345 852
2,436 2,615
The administrative expenditure in the income statement primarily relates to
central costs or exploration costs that cannot be capitalised.
4. EXPENSES BY NATURE AND AUDITOR REMUNERATION
Auditor's remuneration:
Alba and subsidiaries GreenRoc 2022 2021
£'000 £'000 £'000 £'000
Current auditor (PKF Littlejohn LLP)
- Group audit services 39 35 74 35
- Subsidiary audit services - - - 32
- Taxation advice 3 9 12 6
- Corporate finance services relating to IPO (costs in equity) - - - 60
- Taxation advise relating to IPO (costs in equity) - - - 12
42 44 86 145
Tax and corporate finance services in the prior period relating to the IPO
were shared with the minority shareholders of GreenRoc Mining plc and
respective shares of these costs are included within the Company's investment
in GreenRoc Mining plc and the NCI share of assets.
Expenses by nature:
Alba and subsidiaries GreenRoc 2022 2021
£'000 £'000 £'000 £'000
Staff costs (note 6) 427 534 961 628
Professional fees and insurances 174 217 391 260
Consultancy not capitalised 45 9 54 108
Office, travel, PR, other 120 107 227 90
Forex (17) - (17) 7
Depreciation 7 - 7 5
Settlement of historic claims - - - (31)
Administrative expenses 756 867 1,623 1,067
2022 2021
£'000 £'000
Other income
Government grants - 7
Services provided - 16
- 23
5. ACQUISITIONS
Exercise of put-and-call option over 10% of Clogau Gold Project plus buyback
of Royalty
On 1 September 2022 Alba completed the acquisition of the remaining 10% of the
Clogau Gold Project by exercising a put-and-call option over that 10%, taking
its total ownership of the Project to 100%. At the same time, Alba bought back
a 3% net smelter return royalty owned by the vendor, reducing the royalty to
1%, as well as settling a residual ~£72,000 of loans held by the vendor.
Total consideration payable was the issue of 200 million Alba ordinary shares
plus 81,930,830 two-year share warrants with an exercise price of 0.4p per
share, valued at £39,000 via a Black Scholes formula. On the date of issue,
the share price was 0.15 pence and therefore the effective consideration was
£300,000.
The carrying value of the 10% put-and-call option was £214,000. No carrying
value had been attributed to the Royalty.
6. DIRECTORS' EMOLUMENTS AND STAFF COSTS
During the period the Group had on average 11.3 (2021: 10.1) employees each
month, being the Directors (who are the key management personnel) plus
finance, geological and local site staff. Where eligible, Directors and other
staff accrue benefits under a money purchase auto-enrolment scheme held in
NEST.
Costs incurred by: 2022 Costs incurred by: 2021
Alba Mineral Resources plc GreenRoc Mining plc Total Group Alba Mineral Resources plc GreenRoc Mining plc Total Group
£'000 £'000 £'000 £'000 £'000 £'000
Directors' fees, salaries and pension (see table below) 185 54 239 220 54 274
Directors' share based payments 56 69 125 114 16 130
Directors' social security costs 16 7 23 19 4 23
Staff costs
Salaries and wages 221 295 516 247 71 318
Share based payment charges 31 72 103 31 23 54
Social security costs 25 27 52 26 7 33
Defined contribution pension scheme 5 10 15 5 1 6
Fees classified as consultancy (33) - (33) (39) - (39)
Costs recharged to projects (79) - (79) (161) - (161)
Staff costs reported in administrative expenses (Note 4) 427 534 961 462 166 628
Average number of employees 7.3 6 11.3* 10.1 6** 10.9*
** Average based on two months only.
*Two employees of Alba are also employees of GreenRoc.
Directors' remuneration:
2022 2021
Fees Salaries Pension FV of options vesting Total Fees Salaries Pension Bonus FV of options vesting Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
G.F. 36 115 1 56 208 43 115 1 56 215
Fees capitalised (15) - - - (15) (15) - - - (15)
M.C.N 6 18 - - 24 6 18 - 8 32
E.H. 6 18 - - 24 - 23 1 25 49
M.L. - - - - - 5 2 - - - 7
L.B. - - - - - - 19 2 25 46
241 334
G.F. GreenRoc - 54 - 69 123 - 9 - 20 16 45
L.B. GreenRoc* n/a n/a n/a n/a n/a - 5 - 10 - 15
Total 33 205 1 125 364 39 191 2 32 130 394
* LB resigned from the Board of Alba in 2021 so his 2022 remuneration from
GreenRoc does not need separate disclosure here - see GreenRoc Report and
Accounts for the year ended 30 November 2022.
GF: George Frangeskides, MCN: Michael Nott, EH: Elizabeth Henson, ML: Manuel
Lamboley, LB: Lars Brünner
Note 24 gives further details of transactions with the Directors.
Warrants and options
During the year no warrants or options were granted to the Directors. Charges
in the tables above relate to historic grants vesting.
In 2021 warrants were issued to Mr Brünner (resigned) and Ms Henson with an
exercise price of 0.5 pence per share. The warrants vested as follows:
4,000,000 each on 8 June 2021 and 8 December 2021 and can be exercised until 7
December 2023. Mr Brünner waived the rights to his warrants when he stepped
down from the Board. The total estimated value of those warrants was £50,000.
These values were derived from a Black Scholes model as described in Note 17.
The warrants were granted when the share price was 0.41 pence per share and
the warrants were valued at 0.031 pence. The warrant value was high as a
proportion of market price due to the historic share price volatility.
7. INCOME TAXES
The UK corporation tax rate has been applied throughout the workings below as
substantially all of the losses during the year (and historic losses in
retained earnings) have been incurred by the parent or other companies
resident in the UK for tax purposes. Using a weighted average rate would not
change the effective tax rate.
a) Analysis of charge in the period
2022 2021
£'000 £'000
United Kingdom corporation tax at 19% (2021: 19%) - -
Deferred taxation - -
b) Factors affecting tax charge for the period
The tax assessed on the loss for the year before tax differs from the standard
rate of corporation tax in the UK which is 19% (2021: 19%). The differences
are explained below:
2022 2021
£'000 £'000
Loss before tax (2,605) (1,840)
Loss multiplied by standard rate of tax (495) (350)
Effects of:
Expenses not deductible 235 201
Deferred tax assets not recognised/capital allowances not claimed 260 149
- -
A deferred tax asset has not been recognised in respect of timing differences
relating to tax losses and accelerated capital allowances, due to uncertainty
that the potential asset will be recovered. The aggregated losses in each of
the Group companies being Alba Mineral Resources plc and its subsidiaries as
listed in Note 12 amounted to £8,501,000 before adjustments required by local
tax rules and excluding losses on intra-group transactions (2021:
£6,436,000).
8. EARNINGS PER SHARE
The calculation of the basic loss per share is calculated by dividing the
consolidated loss attributable to the equity holders of the Company by the
weighted average number of ordinary shares in issue during the year. The
diluted earnings per share is the same as the basic earnings per share, as
warrants/options are not dilutive due to the loss for the year.
2022 2021
£'000 £'000
Loss attributable to group shareholders (2,039) (1,699)
Weighted average number of ordinary shares for calculating basic loss per 6,476,717,573 6,303,890,811
share
Loss per share (pence) (0.031) (0.027)
9. PROPERTY, PLANT AND EQUIPMENT
Group Land Plant, equipment and vehicles Total
£'000 £'000 £'000
Cost
At 1 December 2020 85 26 111
Additions - 31 31
At 30 November 2021 85 57 142
Additions - 20 20
At 30 November 2022 85 77 162
Accumulated Depreciation
At 30 November 2020 and at 1 December 2021 - - -
Charge for the year - (5) (5)
At 30 November 2021 - (5) (5)
Charge for the year - (7) (7)
At 30 November 2022 - (12) (12)
Net Book Value at 30 November 2022 85 65 150
Net Book Value at 30 November 2021 85 52 137
The land is part of the Clogau gold project. At the year end the land is held
at cost. No depreciation is charged as it is not a wasting asset. Plant is
part of the Clogau gold project.
10. INTANGIBLE FIXED ASSETS
Group Exploration and evaluation Development and production
Total
£'000 £'000 £'000
Cost
As 30 November 2020 4,261 374 4,635
Additions 2,584 - 2,584
Disposals - (374) (374)
As 30 November 2021 6,845 - 6,845
Additions 2,539 - 2,539
At 30 November 2022 9,384 - 9,384
Amortisation and impairment
At 30 November 2020 (735) (374) (1,109)
Disposals - 374 374
At 30 November 2021 (735) - (735)
Impairment charge 2022 (199) - (199)
At 30 November 2022 (934) - (934)
Net book value
At 30 November 2022 8,450 - 8,450
At 30 November 2021 6,110 - 6,110
The Group's intangible fixed assets relate to the Welsh gold projects (Clogau,
Dolgellau Gold and Gwynfynydd) (£3,107,000), and the Greenland projects held
by GreenRoc Mining plc (£5,343,000).
Although there are delays in obtaining permissions for planned exploration on
the Clogau Gold Project, management do not judge the Exploration and
Evaluation costs associated with that project to be impaired at 30 November
2022. Exploration is planned and budgeted for in 2023, the option is valid
until February 2025 and the Group has no data at this point that suggests that
the asset value is unlikely to be recovered from successful development.
During the period GreenRoc Mining plc impaired all capitalised costs in
respect of the Inglefield project on the basis of that Company's decision to
discontinue activity at that permit. The impairment charge arising £199,000.
At the year end the amount of liabilities (being creditors and accruals)
relating to the exploration and evaluation assets was £265,000.
11. INVESTMENTS
Group and Company £'000
At 30 November 2020 4,000
Revaluation of investment (615)
At 30 November 2021 3,385
Revaluation of investment (785)
2,600
The above investment represents an investment in 18.1%* (2020: 18.1%) of the
issued share capital of Horse Hill Developments Limited ("HHDL") and
associated loans to that company accruing interest at variable rates linked to
the Bank of England base rate. Those loans and interest are treated as part of
the overall investment and as such are classified as fair value through the
profit and loss. Any interest due is subsumed within the overall investment
valuation (see Note 22).
HHDL is a private company with no stock quote. There have been no share
transactions in HHDL stock nor transactions in licence interests in the past
two years to provide any basis for valuation.
The majority owner and operator of HHDL, UK Oil & Gas plc (UKOG) recently
announced its results for year ended 30 September 2022 including an impairment
of the HH1 well based on net present value calculations (utilising an
internally generated depletion curve that was independently reviewed). Costs
were based on current costs less any anticipated savings. A long-term Brent
oil price of US$81/bbl was used being the spot rate at the time of assessment,
with a discount rate of 3.86% used being the weighted average costs of capital
of Horse Hill Developments Ltd, the holding company of the producing well
HH-1). There is inherent uncertainty in any oil field valuation due to the
uncertainty of future oil price movements.
The Directors believe that the intrinsic value of the oil field has not been
diminished but recognise that UKOG's impairment of the HH1 asset is an
indicator of impairment of the Group's investment in HHDL. That investment
value has been reviewed for impairment. With reference to UKOG's recent
results, where that company has access to more information for valuation
purposes than the Group, management has revalued the 18.1% investment in HHDL
to align with the value of HHDL in UKOG's balance sheet (comprising an
investment in HHDL and shareholder loans to HHDL).
This revised valuation is a Level 3 valuation under the IFRS 9 hierarchy, as
was the valuation in prior year, as defined in Note 22.
The registered office of HHDL is: The Broadgate Tower, 8th Floor, 20 Primrose
Street, London, EC2A 2EW.
*In a prior period the Company elected not to contribute its share of a cash
call. As a result the Company's shareholding could be diluted but the impact
would be minimal, the reduction being less than 0.1% of the total issued share
capital of HHDL.
12. INVESTMENTS IN SUBSIDIARY UNDERTAKINGS
Investments Capital Contributions Loans Total
Notes £'000 £'000 £'000 £'000
Company
At 30 November 2020 298 1,116 1,341 2,755
Additions - purchase of minorities 5 370 - - 370
Additions - expenditure - - 1,965 1,965
Repayments - - (500) (500)
Disposals to another group company (668) - (2,003) (2,671)
Additional holding in subsidiary as consideration, net of costs 5,500 - - 5,500
Foreign exchange movements - - (49) (49)
Adjustment to Expected Credit Loss provision - - 417 417
Impairment of intercompany loan - - 24 24
At 30 November 2021 5,500 1,116 1,195 7,811
Additions - purchase of minority and royalty - 339 - 339
Additions - expenditure - - 370 370
Impairment of intercompany loan - - (15) (15)
At 30 November 2022 5,500 1,455 1,550 8,505
Upon adoption of IFRS 9 the Company recognised a provision for expected credit
loss against the loans due from subsidiaries. These loans are interest-free
and have no agreed terms. For the purposes of IFRS 9 the loans were assumed to
be repayable on demand. However, management has agreed that these loans will
not be recalled within 12 months from the balance sheet date, so they are
classified as long term.
The loans are assessed as being credit impaired on inception as the
subsidiaries have no income other than the receipt of inter-company funding
and as the loans are primarily used to fund the subsidiaries deferred
exploration expenditure. The subsidiaries would only be able to repay the
loans if they can either sell their exploration assets or develop them to the
point at which the assets generate cash flows, both of which would take time
to achieve. Therefore, at inception, it is known that the loans will not be
able to be repaid in accordance with the loan terms (that is, on demand) and
therefore they are assessed as being credit impaired.
Historic and current data has been used to derive a probability of default and
this has been applied across the portfolio of loans.
At 30 November 2022 the Company held the following interests in subsidiary
undertakings, which are included in the consolidated financial statements:
Name of company Country of incorporation Holding at 30 November 2022 Nature of holding Holding at 30 November 2021 Business
Aurum Mineral Resources Ltd Ireland 100% Direct 100% Exploration
Mauritania Ventures Limited England & Wales 50% Direct 50% Non-trading
Dragonfire Mining Limited England & Wales 100% Direct 100% Exploration
Gold Mines of Wales Limited Jersey 100% Indirect 90% Holding Co.
GMOW (Holdings) Limited England & Wales 100% Indirect 90% Holding Co.
GMOW (Operations) Limited England & Wales 100% Indirect 90% Exploration
GMOW Gwynfynydd Limited England & Wales 100% Direct 100% Exploration
GreenRoc Mining plc England & Wales 54% Direct 54% Parent
Obsidian Mining Limited England & Wales 54% Indirect 54% (indirect) Exploration
White Eagle Resources Limited England & Wales 54% Indirect 54% (indirect) Exploration
White Fox Resources Limited England & Wales 54% Indirect 54% (indirect) Exploration
The address of the registered office of Aurum Mineral Resources Ltd is c/o
Hugh Lennon Associates, Unit 8&10 Church View, Cavan, Ireland.
The address of the registered office of Gold Mines of Wales Limited is 3(rd)
Floor, IFC5, Castle Street, St Helier, Jersey JE2 3BY.
All the other companies have their registered office at 6th Floor, 60
Gracechurch Street, London EC3V 0HR.
Mauritania Ventures Limited has been treated as a subsidiary undertaking
because the Company exercises dominant influence over the investment by virtue
of having the casting vote at Board meetings. The Company was dissolved on 14
February 2023.
During the period Dragonfire Mining Limited acquired 10% of Gold Mines of
Wales Limited, taking its holding to 100%. See Note 5 to the Accounts for
further details on this transaction.
After the reporting date, GreenRoc Mining plc issued further share capital.
Alba's interest in GreenRoc was diluted to 44.67% at 9 March 2023. See Note 25
"Events after the Reporting Date" for more information.
13. TRADE AND OTHER RECEIVABLES
Group Group Company Company
2022 2021 2022 2021
Current £'000 £'000 £'000 £'000
Other debtors 109 159 92 88
Prepayments and accrued income 20 19 19 16
129 178 111 104
The fair value of trade and other receivables approximates to their book
value.
14. CASH AND CASH EQUIVALENTS
Group Group Company Company
2022 2021 2022 2021
£'000 £'000 £'000 £'000
Cash at bank and in hand 456 3,948 322 663
The fair value of cash at bank is the same as its carrying value.
15. TRADE AND OTHER PAYABLES
Group Group Company Company
2022 2021 2022 2021
Current £'000 £'000 £'000 £'000
Trade creditors 222 481 81 80
Other creditors 15 13 15 13
Accruals and deferred income 227 177 69 74
464 671 165 167
The fair value of trade and other payables approximates to their book value.
16. FINANCIAL LIABILITIES
The Company has no financial liabilities.
Group Other borrowings Derivative financial instrument Total
Financial Liabilities £'000 £'000 £'000
At 30 November 2019 and 2020 7 34 41
Revaluation recognised in the profit and loss - 180 180
At 30 November 2021 7 214 221
Released as part of 10% minority purchase (7) (214) (221)
At 30 November 2022 - - -
The derivative financial instrument related to the recognition of a liability in respect of the put and call option over the remaining 10% shareholding in the Clogau gold project at last year end, which the Company acquired during the period. See Note 5 for further information.
17. CALLED UP SHARE CAPITAL
2022 2022 2021 2021
Number Number
of shares £'000 of shares £'000
Issued, allotted and fully paid
Ordinary shares of 0.1 pence - -
Ordinary shares of 0.01 pence 7,121,568,996 712 6,404,645,919 641
Deferred shares of 0.9 pence 93,070,100 838 93,070,100 838
B deferred shares of 0.09 pence 3,918,351,946 3,526 3,918,351,946 3,526
Total 11,132,991,042 5,076 10,416,067,965 5,005
The Company's Articles do not specify authorised share capital. All issued
ordinary shares carry equal rights. The deferred shares do not carry any
rights to vote or dividend rights. In addition, holders of deferred shares
will only be entitled to a payment on a return of capital or on a winding up
of the Company after each of the holders of the ordinary shares have received
a payment of £1,000,000 on each such share.
During the year the Company issued ordinary shares as follows:
Ordinary shares Ordinary shares Deferred shares Share premium Total
of 0.01 pence
£'000 £'000 £'000 £'000
At 1 December 2021 6,404,645,919 641 4,364 9,877 14,882
September issue of shares as consideration for 10% minority acquisition 200,000,000 20 -
280 300
September exercise of warrants 16,923,077 1 - 20 21
November placing net of fees 500,000,000 50 - 420 470
November placing warrants valuation (136) (136)
At 30 November 2022 712 4,364 10,461 15,537
Warrants Warrants reserve
£'000
At 1 December 2021 809,286,713 1,425
Warrants granted with placings 250,000,000 136
Warrants issued as consideration 81,930,830 39
Warrants vesting (counted in brought forward balance) - 87
Warrants exercised (16,923,077) (13)
Warrants expired/waived (244,363,636) (487)
At 30 November 2022 879,930,830 1,187
Of the warrants outstanding at 30 November 2022, 857,930,830 are vested and
able to be exercised. The weighted average exercise price of these vested
warrants is 0.35 pence. Where warrants were exercised in the year, the
weighted average share price at the date of exercise was 0.14 pence.
As at 30 November 2022 Alba had 879,930,830 warrants and options outstanding:
No. of warrants Exercise price (pence) Final exercise date Vested
60,000,000(1) 0.4 pence 13 January 2027 Awarded under the EMI scheme. Vested.
60,000,000(2) 0.42 pence 2 May 2028 Awarded under the EMI scheme. Vested.
50,000,000(3) 0.16 pence 31 December 2023 Partially vested.
200,000,000(3) 0.16 pence 28 August 2030 Awarded under the EMI scheme.
Partially vested.
160,000,000 0.75 pence 23 November 2022 Vested.
10,000,000 0.375 pence 1 December 2022 Vested.
8,000,000(4) 0.5 pence 7 December 2023 Vested.
91,930,830 0.4 pence 31 August 2024 Vested.
250,000,000 0.2 pence 16 November 2024 Vested.
879,930,830 At 30 November 2022
As at 30 November 2021 Alba had 809,286,713 warrants and options outstanding:
No. of warrants Exercise price (pence) Final exercise date Vested
60,000,000(1) 0.4 pence 13 January 2027 Awarded under the EMI scheme. Vested.
60,000,000(2) 0.42 pence 2 May 2028 Awarded under the EMI scheme. Vested
16,923,077 0.13 pence 4 September 2022 Vested
236,363,636 0.55 pence 20 September 2022 Vested
50,000,000(3) 0.16 pence 31 December 2023 Partially vested.
200,000,000(3) 0.16 pence 28 August 2030 Awarded under the EMI scheme.
Partially vested.
160,000,000 0.75 pence 23 November 2022 Vested.
10,000,000 0.375 pence 1 December 2022 Vested.
16,000,000(4) 0.5 pence 7 December 2023 Partially vested.
809,286,713 At 30 November 2021
(1,2,3,4) These warrants fall within the scope of IFRS 2 "Share-based
Payments" and were issued in 2017, 2018, 2020 respectively.
The fair value of the warrants issued in 2022 calculated using a Black Scholes
model was £175,000. Within the meaning of the IFRS 13 fair value hierarchies,
this is a Level 2 valuation. It is based on a risk-free rate of 10 year gilts
on the date of grant, a dividend yield of nil, the life of the options, the
share price at the date of issue of the warrants and the strike prices of the
warrants. The volatility was derived from the quoted prices for the Company's
shares in the 12-month period prior to the issue of the respective warrants.
18. NON-CONTROLING INTERESTS
Mauritania Ventures Ltd White Fox Resources Ltd GreenRoc Mining plc Total NCIs
£'000
At 30 November 2020 (9) (7) - (16)
Acquisition of NCI - 7 - 7
NCI arising from IPO - - 2,806 2,806
Share of loss for the year - - (141) (141)
Share of other reserves - - 76 76
At 30 November 2021 (9) - 2,741 2,732
Share of loss for the year - - (566) (566)
Share of movement on other reserves - - 65 65
At 30 November 2022 (9) - 2,240 2,231
The Group recognises the non-controlling interest in GreenRoc Mining plc at
the non-controlling interest's proportionate share of the entity's net
identifiable assets as included in the Group balance sheet. These differ from
the assets presented in the standalone GreenRoc Mining plc Report and Accounts
due to consolidation entries, including elimination of fair valuation uplift
generated in the IPO in 2021. This fair value uplift was judged by management
to be intragroup profit.
At the balance sheet date Alba holds 53.96% of the share capital of GreenRoc
Mining plc (see Note 12). Voting rights do not differ from ownership
interests.
After the year end Alba's ownership was diluted to 44.67%. For more
information see Note 25.
The Report and Accounts of GreenRoc Mining plc for the period ended 30
November 2022 can be found on its website www.greenrocmining.com.
19. LEASES
The Company has no lease or rental commitments within scope of IFRS 16.
Expenditure short-term leases during the year was £19,000.
20. CAPITAL COMMITMENTS
As at 30 November 2022, the Group / Company had commitments to spend at least
£470,000 in the calendar year 2023 on its Greenland licences (2021:
£105,000), After taking into account credit from historic expenditure, the
real commitments for 2023 reduce to approximately £130,000 due to be spent on
the Melville Bay project.
21. CONTINGENT LIABILITIES
A 4% net smelter royalty agreement was agreed as part of the acquisition of
the Clogau gold project in 2018. During the year the Group acquired 3% of
that. A 1% net smelter royalty agreement remains in place. The Group has no
obligations under this agreement until such time as gold is produced and sold.
22. FINANCIAL INSTRUMENTS
The Group's financial instruments comprise investments, cash at bank and
various items such as debtors, loans and creditors. The Group has not entered
into derivative transactions nor does it trade financial instruments as a
matter of policy.
Credit risk
The Group's credit risk arises primarily from cash at bank, debtors and the
risk the counterparty fails to discharge its obligations. As at 30 November
2022, debtors included £25,000 that was past due but not impaired (2021:
£8,100). Given the low number and value of debtors management considers
recoverability of any overdue amount individually on an annual basis.
The Company's credit risk primarily arises from intercompany debtors and this
is reviewed annually in the course of reviewing the Expected Credit Loss
provision required under IFRS 9. See Note 12 for more details.
Funding risk
Funding risk is the possibility that the Group might not have access to
the financing it needs. The Group's continued future operations depend on the
ability to raise sufficient working capital through the issue of equity share
capital. The Directors are confident that adequate funding will be forthcoming
with which to finance operations. The Board has a strong track record of
raising funds as required. Controls over expenditure are carefully managed and
activities planned to ensure that the Group has sufficient funding.
Liquidity risk
Liquidity risk arises from the management of cash funds and working capital.
The risk is that the Group will fail to meet its financial obligations as they
fall due. The Group operates within the constraints of available funds and
cash flow projections are produced and regularly reviewed by management.
At 30 November 2022 the management considers that the liquidity risk is not
material as sufficient cash is held to meet financial liabilities to be
settled in cash.
Future liquidity risk is addressed in Note 1 under the heading "Going
Concern".
Interest rate risk profile of financial assets
Excluding the investment in HHDL, the only financial assets (other than short
term debtors) are cash at bank and in hand, which comprises money at call. The
interest earned in the year was nil. The Directors believe the fair value of
the financial instruments is not materially different to the book value.
The investment in HHDL includes a loan element. Under an investment agreement
those loans attract interest. Loans plus interest become payable once HHDL has
surplus cash. As the Group / Company treats the loan as held at fair value
through profit and loss, any interest credit is subsumed within the fair value
movement.
Foreign currency risk
The Group has an Irish subsidiary, which can affect the Group's sterling
denominated reported results as a consequence of movements in the
sterling/euro exchange rates. The Group also incurs costs denominated in
foreign currencies (primarily
Danish Krone) which gives rise to short term exchange risk. The Group does not
currently hedge against these exposures as they are deemed immaterial and
there is no material exposure as at the year-end. No sensitivity analysis has
been performed.
Market risk
Following the acquisition of the investment in Horse Hill Developments Limited
("HHDL"), the Group is exposed to market risk in that the value of the
investment would be expected to vary depending on the price of oil and the
future cash calls will, to an extent, depend on the revenue generated from oil
produced from well testing activities. For a review of the progress of the
Horse Hill project, please see the Chairman's Statement.
During the year under review the price of Brent crude oil trended upwards from
$70 at the start of the year to over $100 then to $86 at the 30 November 2022,
stabilising at around $85 for the last 6 month. However, a sustained downturn
in the price of oil would have a materially adverse effect on the revenues
generated from the Horse Hill Oil Field. A material reduction in the market
value of HHDL shares can be expected to result in a proportionate reduction in
the carrying value of the Group's investment in HHDL.
Categories of financial instrument
Group Group Company Company
2022 2021 2022 2021
£'000 £'000 £'000 £'000
Financial assets
Investments at fair value through profit or loss:
Investment in HHDL (Note 11) 2,600 3,385 2,600 3,385
Held at amortised cost:
Trade and other receivables 109 159 92 88
Cash and cash equivalents 456 3,948 322 663
Intercompany receivables net of expected credit losses - - 1,550 1,195
3,165 7,492 4,564 5,331
Financial liabilities
Liabilities held at fair value through profit or loss:
Derivative financial instrument (Note 16) - 214 - -
Held at amortised cost:
Trade and other payables 237 494 96 93
Other financial liabilities - 7 - -
237 715 96 93
Valuation of financial instruments
Under IFRS 9 the valuation of financial instruments is categorised based on
the inputs used to generate the valuation as follows:
Level 1: The fair value of financial instruments traded in active markets
(such as publicly traded derivatives, and equity securities) is based on
quoted market prices at the end of the reporting period. The quoted market
price used for financial assets held by the group is the current bid price.
These instruments are included in level 1.
Level 2: The fair value of financial instruments that are not traded in an
active market (for example, over-the-counter derivatives) is determined using
valuation techniques which maximise the use of observable market data and rely
as little as
possible on entity-specific estimates. If all significant inputs required to
fair value an instrument are observable, the instrument is included in level
2.
Level 3: If one or more of the significant inputs is not based on observable
market data, the instrument is included in level 3. This is the case for
unlisted equity securities.
The Group's financial instruments by valuation method:
Level 3 Total
£'000 £'000
Financial assets held at FVTPL
Investment - FV at 30 November 2021 3,385 3,385
Impairment expense in 2022 (785) (785)
Investment - FV at 30 November 2022 2,600 2,600
Financial liabilities held at FVTPL
Derivative financial instrument (Note 16) - FV at 30 November 2021 214 214
Exercise of instrument in 2022 (214) (214)
Derivative financial instrument (Note 16) - FV at 30 November 2022 - -
For more information on the valuation bases see the relevant Notes referred to
above.
Included in the value for HHDL are loans of £2,126,000 plus accrued interest.
These were designated as fair value through the profit and loss on recognition
as they form part of the Company's investment in Horse Hill Developments
Limited. The maximum exposure to credit risk of this financial asset at the
end of the reporting period is the carrying amounts of the loans. The loans
are not valued separately from the investment. No change in fair value to date
has been attributable to a change in credit risk.
23. CAPITAL MANAGEMENT
The Group's objective when managing capital is to safeguard the entity's
ability to continue as a going concern and develop its mining and exploration
activities to provide returns for shareholders. The Group's funding comprises
equity and debt. The Directors consider the Company's capital and reserves to
be capital. When considering the future capital requirements of the Group and
the potential to fund specific project development via debt, the Directors
consider the risk characteristics of all the underlying assets in assessing
the optimal capital structure.
24. RELATED PARTY TRANSACTIONS
All related party transactions have been conducted at arm's length.
Fees charged by Directors are detailed below and also shown in Note 6.
"Directors' emoluments and staff costs".
Company
Transactions between the Company and its subsidiaries, which are related
parties of the Company, have been eliminated on consolidation. The loan
balances and transactions in the year with the subsidiaries are disclosed in
Note 12. Details of transactions between the Company and other related parties
are disclosed below.
Group
Stirling Corporate Limited and Berwick Capital Limited, companies which George
Frangeskides, a director of the Company, controls, billed the Group combined
£2,000 (2021: £nil) for recharges of historic costs incurred in the course
of work performed on behalf of the Group. These amounts were accrued in prior
periods and were outstanding at year end. There are no terms and conditions
associated with the outstanding balances.
Aetos Consulting Limited, a company which George Frangeskides, a director of
the Company, jointly controls, charged the Group fees for consultancy services
of £36,000 (2021: £43,000). Of these fees, £15,000 represents work carried
out specifically on the advancement of the Group's project portfolio and has
therefore been capitalised. During the period this company also recharged the
Group amounts totalling £7,000 for historic expenses incurred on behalf of
the Group. These costs were accrued in prior periods.
As at the year-end £53,000 (2021: £44,000) was owed to Aetos Consulting
Limited and £36,000 was accrued for invoices expected. There are no terms and
conditions associated with the outstanding balance.
Woodridge Associates, a trading name of Michael Nott, a director of the
Company, charged the Group fees of £6,000 for consultancy services during the
year including £1,500 accrued at 30 November 2022.
Ixia Advisers, a company controlled by Elizabeth Henson, a director of the
Company, charged the Group fees of £6,000 for consultancy services during the
year.
25. EVENTS AFTER THE REPORTING PERIOD
Corporate
In December 2022 GreenRoc Mining plc announced a placing and a broker option.
On 6 March 2023 GreenRoc Mining plc announced a further placing. The combined
effect of these rounds of fundraising is to dilute Alba's holding in GreenRoc
Mining plc to 44.67% after the reporting date.
On 2 May 2023 the Company announced a change in broker.
Clogau Gold Project
On 27 March 2023 the Company updated the market on the progress of the permit
applications for activities at the Clogau Gold Project.
GreenRoc Mining plc - Amitsoq Graphite Project
Since the balance sheet date GreenRoc Mining plc has made a number of RNS
announcements on the progress of the Amitsoq graphite project. Also announced
was a share placing (see "Corporate" above).
For further information see GreenRoc Mining plc full year results announced on
24 March 2023.
Horse Hill Oil Project
On 28 March 2023 terms of a proposed farm-in arrangement for a seismic survey
and future drilling at the Horse Hill oil field were announced by UKOG. These
are subject to shareholder consent.
Limerick Base Metals
The Group announced that it had surrendered its exploration licence in
Limerick on 20 January 2023. Due to lack of permissions, viable exploration
targets could not be progressed and under the terms of the licence from
relevant authorities in Ireland, the licence must be surrendered where no
further expenditure was planned.
26. ULTIMATE CONTROLLING PARTY
The Directors consider there is no ultimate controlling party.
27. PUBLICATION OF THE ANNUAL REPORT
The annual report will be available on the Company's website
(www.albamineralresources.com (http://www.albamineralresources.com/) shortly.
**ENDS**
For further information, please visit www.albamineralresources.com
(http://www.albamineralresources.com/) or contact:
Alba Mineral Resources plc +44 20 3950 0725
George Frangeskides, Executive Chairman
SPARK Advisory Partners Limited (Nomad) +44 20 3368 3555
Andrew Emmott
CMC Markets plc (Broker) +44 (0) 20 3003 8632
Thomas Smith / Douglas Crippen
St Brides Partners (Financial PR) alba@stbridespartners.co.uk
Isabel de Salis / Catherine Leftley
Alba's Projects & Investments
Mining Projects Operated by Alba Location Ownership
Clogau (gold) Wales 100%
Dolgellau Gold Exploration (gold) Wales 100%
Gwynfynydd (gold) Wales 100%
Investments Held by Alba Location Ownership
GreenRoc Mining Plc (mining) Greenland 44.7%
Horse Hill (oil) England 11.765%
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