REG - Alba Mineral Resrcs. - GROC Update - Interim Results

Alba Mineral ResourcesAnnouncement

16/08/2023 07:45

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RNS Number : 4872J  Alba Mineral Resources PLC  16 August 2023

16 August 2023 

Alba Mineral Resources plc 

("Alba" or the "Company") 

 

Investee Company Update: GreenRoc Mining Interim Results

 

Alba Mineral Resources plc (AIM: ALBA) is pleased to note the announcement
today by its portfolio company, GreenRoc Mining plc ("GreenRoc") (AIM:
GROC).  Alba holds a 42.97% interest in GreenRoc. The announcement is set
out below without material changes. 

 

 

 

 

GreenRoc Mining plc

("GreenRoc" or the "Company")

 

 

INTERIM RESULTS FOR THE SIX MONTHS TO 31 MAY 2023

 

The Board of Directors of GreenRoc Mining Plc is pleased to report the
Company's interim results for the six months ended 31 May 2023. These
incorporate the results of its subsidiary companies Obsidian Mining Limited
("OML"), White Eagle Resources Limited ("WERL"), White Fox Resources Limited
("WFRL"), and its newly-created Greenlandic subsidiary Greenland Graphite A/S
(together, the "Subsidiary Companies", collectively with GreenRoc, the
"Group").

 

Highlights

 

·      Mineral Resource Estimate ("MRE") update for Amitsoq announced in
January 2023

o  23.05 million tonnes (Mt) at an average grade of 20.41% Graphitic Carbon
("C(g)"), giving a total graphite content of 4.71 Mt

o  Represents threefold increase compared with maiden MRE from March 2022

·      Amitsoq graphite shown to be "very suitable" for processing into
high-purity spherical graphite - the anode material for electric vehicle
("EV") batteries

·      Successful equity placings in December 2022 and March 2023,
raising gross proceeds of £0.88 million, at average price of 3.8 pence

·      December 2022 placing included "broker option" to provide
shareholders with opportunity to participate in placing for up to £200,000 in
aggregate on same terms

·      Information meetings with local communities in South Greenland
and meeting with Greenlandic Minister for Mineral Resources in January 2023

·      Amitsoq Social Impact Assessment ("SIA") and Environmental Impact
Assessment ("EIA") programs initiated in November 2022 and July 2021
respectively

·      European Raw Materials Alliance ("ERMA") declared official
support for Amitsoq graphite project in February 2023

·      CEO Stefan Bernstein presented as part of discussion panel at
BMI's European Gigafactory Conference in Budapest in March 2023

·      Amitsoq MoU Signed with Norwegian Construction and Mining Group
Leonhard Nielsen & Sønner A/S ("LNS") in March 2023

·      GreenRoc awarded "Greenland's Prospector and Developer of the
Year" by the Greenlandic Government at PDAC Toronto in March 2023

·      Amitsoq Preliminary Economic Assessment ("PEA") programme
initiated in May 2023. Publication of findings expected in September 2023

 

Post period end highlights

 

·      Successful equity placing in August 2023, raising gross proceeds
of £0.47 million at 3.8 pence. Funds to be used to finalise Amitsoq PEA,
undertake additional graphite test work, progress Amitsoq SIA and EIA
programmes and support commercial negotiations with potential offtake and
financial partners

·      Further test work ongoing, including electrochemical testing of
spheronised graphite

·      Larger scale bulk sampling test work of the Amitsoq Lower
Graphite Layer orebody targeted in 2023/2024 to constrain processing
parameters and make larger amounts of Amitsoq graphite concentrate available
for spherical graphite testing and supply potential off-takers with sample
material

 

GreenRoc's CEO, Stefan Bernstein, commented:

"We have taken important steps forward at GreenRoc in the first half of 2023
with regards to the development of our flagship asset, the Amitsoq Graphite
Deposit in southern Greenland. The declaration of a significantly upgraded
Mineral Resource Estimate in January 2023 not only confirmed the high-grade
nature of the Amitsoq graphite ore but increased it to more than 20% graphite,
which marks out Amitsoq as a truly world-class project. We are well underway
with our environmental and social impact assessments, which are important
milestones towards the filing of an application for an exploitation licence
for Amitsoq, and work on our Preliminary Economic Assessment or PEA has also
commenced. The completion of the PEA is an important step in the development
of the Amitsoq Project towards commercial production and we hope to share the
findings in September 2023.

"All in all, work at Amitsoq is progressing well and we thank our shareholders
for their ongoing support which is enabling us to keep pace with our plans for
moving Amitsoq towards production as soon as possible."

 

Amitsoq Graphite Project

Key points about Amitsoq:

·      GreenRoc's primary focus at Amitsoq is on developing the Amitsoq
Island deposit, which has a total inferred, indicated and measured JORC
Resource of 23.05 million tonnes (Mt) at an average grade of 20.41% Graphitic
Carbon ("C(g)"), giving a total graphite content of 4.71 Mt.

·      Deposits which have code-compliant resources with contained
graphite grades in excess of 20% are scarce, with the average global grade of
graphite resources being just 8.45% (according to S&P Global).

·      Independent micronisation and spheronisation test work has proved
that Amitsoq graphite can be easily upgraded to high-grade, anode-quality
graphite, otherwise known as high purity spherical graphite or HPSG, a key raw
material in the manufacturing of EVs.

·      In GreenRoc's test work programmes, Amitsoq spheronised graphite
has achieved higher than 99.95% purity requiring relatively little energy and
processing, and using the milder alkaline purification method compared to the
industry standard hydrofluoric acid, which bodes well for future production
costs and sustainability commitments.

·      Significant further upside exists at Amitsoq as the Amitsoq
Island deposit is open in at least two directions with potential for
considerable further expansion via the similarly high-grade Kalaaq Mainland
Deposit, as well as a series of other high-grade targets on GreenRoc's licence
package.

·      The deposit was in small-scale production about 100 years ago,
and there remains substantial underground mine development in place from that
time, which will be of considerable benefit to GreenRoc in the mine
construction phase.

 

Thule Black Sands Ilmenite Project

Test work to determine the ilmenite content of the coarser grain fraction
within drill core samples from Thule Black Sands ("TBS"), GreenRoc's ilmenite
mineral sands project in North Greenland, is near completion and is expected
to be reported this autumn.

 

Melville Bay Iron Ore Project

Greenroc has undertaken a study, including interpretation, of available
geophysical data for the Melville Bay project and is presently engaged in
interpreting the results and the implications for the iron ore potential of
the licence areas. The Melville Bay Iron Ore Project is also located in North
Greenland, ca. 100km to the south of TBS.

 

Corporate

In January 2023, it was announced that S.P. Angel Corporate Finance LLP ("SP
Angel") had been appointed as sole broker to the Company.

A Greenlandic subsidiary, Greenland Graphite A/S, was established in May 2023
in readiness for becoming the licence-holding and operating company within the
GreenRoc group for the future exploitation of the Amitsoq graphite deposit.

 

Financial Results

 

The Group made a loss attributable to equity holders of the parent for the
period, after taxation, of £417k (May 2022: £484k). GreenRoc Mining Plc was
incorporated in March 2021, but activity only commenced on 28 September 2021,
when the Company acquired Alba's Greenland mining portfolio in conjunction
with its IPO and Admission to AIM. Since then, corporate overheads, consisting
primarily of salaries and professional and listing costs, have been expensed
as incurred, while exploration expenditure has been capitalised as an
intangible asset in line with the Group's accounting policy.

 

At the end of the reporting period, the Group's cash was £210k, a net cash
inflow of £86k. This included exploration expenditure of £134k, £221k of
creditor settlements (mainly related to exploration work towards the end of
2022), administration costs of £414k (including £230k of salaries and other
costs associated with the GreenRoc in-house technical and geological team),
and net funding of £831k (primarily the two equity placings in the period).

 

The basic and diluted loss per share was 0.35 pence (May 2022: loss of 0.43
pence).

 

This announcement contains inside information for the purposes of the UK
Market Abuse Regulation and the Directors of the Company are responsible for
the release of this announcement.

 

Forward Looking Statements

This announcement contains forward-looking statements relating to expected or
anticipated future events and anticipated results that are forward-looking in
nature and, as a result, are subject to certain risks and uncertainties, such
as general economic, market and business conditions, competition for qualified
staff, the regulatory process and actions, technical issues, new legislation,
uncertainties resulting from potential delays or changes in plans,
uncertainties resulting from working in a new political jurisdiction,
uncertainties regarding the results of exploration, uncertainties regarding
the timing and granting of prospecting rights, uncertainties regarding the
Company's ability to execute and implement future plans, and the occurrence of
unexpected events. Actual results achieved may vary from the information
provided herein as a result of numerous known and unknown risks and
uncertainties and other factors.

 

For further information, please contact:

 

 GreenRoc Mining Plc                                +44 20 3950 0724

 Stefan Bernstein, CEO

 Cairn Financial Advisers LLP (Nomad)               +44 20 7213 0880

 James Caithie, Sandy Jamieson, Louise O'Driscoll

 SP Angel (Broker)                                  +44 20 3470 0500

 Ewan Leggat, Charlie Bouverat

 St Brides Partners Ltd (Financial PR & IR)         +44 20 7236 1177

 Susie Geliher / Paul Dulieu / Isabelle Morris

 

About GreenRoc

GreenRoc Mining plc is an AIM-quoted company which is developing mining
projects in Greenland in critical, high-demand and high-value minerals.

 

Led by a group of highly experienced mining industry professionals, GreenRoc
has a portfolio of 100% owned projects all of which have defined Resources:

 

·      Amitsoq Graphite Project, one of the highest-grade graphite
deposits in the world with a combined Measured, Indicated and Inferred JORC
Resource of 23.05 million tonnes (Mt) at an average grade of 20.41% graphite,
giving a total graphite content of 4.71 Mt;

·      Thule Black Sands Ilmenite Project ("TBS"), which has an initial
Mineral Resource of 19Mt at 43.6% Total Heavy Minerals with an in-situ
ilmenite grade of 8.9%; and

·      Melville Bay Iron Project, which has a Mineral Resource Estimate
of 67Mt at 31.4% iron and has been proven to be processable to a high-grade,
70% concentrate with low impurities.

 

 

UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE SIX MONTHS ENDED 31 MAY 2023

 

 

                                                                                      Unaudited                      Unaudited                      Audited

                                                                                      Six months ended 31 May 2023   Six months ended 31 May 2022   12 months ended 30 Nov 2022
                                                                                      £'000                          £'000                          £'000
 Revenue                                                                              -                              -                              -
 Cost of sales                                                                        -                              -                              -
 Gross profit                                                                         -                              -                              -
 Administrative expenses                                                              (415)                          (483)                          (1,030)
 Impairment                                                                           -                              -                              (199)
 Operating loss                                                                       (415)                          (483)                          (1,229)
 Finance expense                                                                      (2)                            (1)                            (1)
 Loss for the period before tax                                                       (417)                          (484)                          (1,230)
 Taxation                                                                             -                              -                              -
 Loss for the period from continuing operations                                       (417)                          (484)                          (1,230)

 Loss attributable to equity holders of the parent                                    (417)                          (484)                          (1,230)

 Other comprehensive income
 Items that may be subsequently reclassified to profit or loss:
 Exchange loss on translating foreign operations                                      (2)                            -                              -
 Total comprehensive income attributable to equity                                    (419)                          (484)                          (1,230)

 Earnings per ordinary share attributable to the ordinary equity holders of the
 parent
 Basic and diluted (pence)                                                            (0.35)                         (0.43)                         (1.10)

 

 

 

 

 

 

 

 

 

UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AT 31 MAY 2023

 

 

                                     Unaudited     Unaudited     Audited Year 30 Nov 2022

                                     31 May 2023   31 May 2022
                                     £'000         £'000         £'000
 Non-current assets
 Intangible fixed assets             10,285        9,036         10,151
 Total non-current assets            10,285        9,036         10,151

 Current assets
 Trade and other receivables         7             101           13
 Cash and cash equivalents           210           1,805         126
 Total current assets                217           1,906         139

 Current liabilities
 Trade and other payables            (36)          (190)         (256)
 Payable to parent entity            (57)          (75)          (65)
 Total current liabilities           (93)          (265)         (321)

 Net current assets/(liabilities)    124           1,641         (182)

 Non-current liabilities
 Deferred tax                        (1,004)       (1,004)       (1,004)
 Total non-current liabilities       (1,004)       (1,004)       (1,004)

 Net assets                          9,405         9,673         8,965

 Capital and reserves
 Share capital                       184           161           161
 Share premium                       10,851        10,033        10,033
 Share-based payment reserve         271           214           252
 Translation reserve                 (2)           -             -
 Retained earnings                   (1,899)       (735)         (1,481)

 Total equity                        9,405         9,673         8,965

 

UNAUDITED CONSOLIDATED CASH FLOW STATEMENT

FOR THE SIX MONTHS ENDED 31 MAY 2023

 

                                                         Unaudited                      Unaudited                      Audited

                                                         Six months ended 31 May 2023   Six months ended 31 May 2022   12 months ended 30 Nov 2022
                                                         £'000                          £'000                          £'000
 Cash flows from operating activities
 Operating loss                                          (415)                          (483)                          (1,229)
 Adjustments for:
 Share-based payment charge                              19                             103                            141
 Impairment                                              -                              -                              199
 (Decrease)/increase in creditors                        (221)                          (292)                          (226)
 Decrease/(increase) in debtors                          6                              (37)                           51
 Net cash used in operating activities                   (611)                          (709)                          (1,064)

 Cash flows from investing activities
 Capitalised exploration expenditure                     (134)                          (777)                          (2,091)
 Net cash used in investing activities                   (134)                          (777)                          (2,091)

 Cash flows from financing activities
 Proceeds from issue of shares                           883                            -                              -
 Cost of issue                                           (42)                           -                              -
 Repayment of loan from parent                           (8)                            -                              -
 Receipts of borrowings from parent                      -                              23                             13
 Finance expense                                         (2)                            (1)                            (1)
 Net cash generated from financing activities            831                            22                             12

 Net increase/(decrease) in cash and cash equivalents    86                             (1,464)                        (3,143)
 FX on cash and cash equivalents                         (2)                            -                              -
 Cash and cash equivalents at beginning of period        126                            3,269                          3,269
 Cash and cash equivalents at end of period              210                            1,805                          126

 

 

 

NOTES TO THE HALF-YEARLY FINANCIAL INFORMATION

 

1.            Basis of preparation

 

The Group consolidates the financial statements of the Company and its
subsidiary undertakings.

 

The financial information has been prepared under the historical cost
convention in accordance with UK-adopted International Accountant Standards
("UK-adopted IAS") as they apply to the Group for the six months ended 31 May
2023.

 

2.            Taxation

No charge for corporation tax for the period has been made due to the expected
tax losses available.

 

3.            Loss per share

Basic loss per share is calculated by dividing the loss attributable to
ordinary shareholders of £417k (May 2022: 484k; November 2022: £1,230k) by
the weighted average number of shares of 118,862,168 (May 2022: 111,200,001;
November 2022: 111,200,001) in issue during the period. The diluted loss per
share calculation is identical to that used for basic loss per share as the
exercise of warrants would have the effect of reducing the loss per ordinary
share and therefore is not dilutive under the terms of Financial Reporting
Standard 22 "Earnings Per Share".

 

**ENDS**

 

For further information, please visit www.albamineralresources.com
(http://www.albamineralresources.com/)  or contact:  

Alba Mineral Resources Plc  

George Frangeskides, Executive Chairman
+44 20 3950 0725 

 SPARK Advisory Partners Limited (Nomad)   

Andrew Emmott  / Neil Baldwin
    +44 20 3368 3555 

CMC Markets plc (Broker)  

Thomas Smith / Douglas Crippen
  +44 20 3003 8632 

 St Brides Partners (Financial PR)  

Isabel de Salis / Catherine
Leftley
alba@stbridespartners.co.uk 

 

Alba's Projects and 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  42.97%
 Horse Hill (oil)                   England    11.765%

 

 

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