REG - Alien Metals Limited - Unaudited Consolidated Interim Results
27/09/2024 09:45
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RNS Number : 0242G Alien Metals Limited 27 September 2024
Trading Symbols
AIM: UFO
FWB: I3A1
27 September 2024
Alien Metals Limited
("Alien", "Alien Metals" or "the Company")
Unaudited Consolidated Interim Results for the six months ended 30 June 2024
Alien Metals Limited (AIM: UFO), a minerals exploration and development
company, is pleased to announce its financial results for the six months ended
30 June 2024 (the "Period"). The results for the Period are also available
on the Company's website at www.alienmetals.uk.
Chairman's Statement
We have continued to push ahead during the half-year on both the Hancock and
Pinderi Hills projects. As reported in the annual results for the year ended
31 December 2023, the Hancock Development Study was completed and announced on
8 February 2024.
This study defined a Mineral Resource Estimate of 8.4 million tonnes ("Mt") @
60% Fe JORC Mineral Resource, including an upgraded Indicated Resource of
4.5Mt@ 60.2% Fe.. In addition, the Mallina tenements, which adjoin Alien's
Hancock Iron Ore Project, are expected to be granted shortly, and could
potentially add materially to the existing resource.
We have continued to explore all avenues for the further development of the
Hancock Project, and continue to assess the alternatives of joint venture,
off-take agreements and sole funding options. The Company has recently
received further recent non-binding proposals, and thus we are deferring the
previously disclosed joint venture discussions, while we assess all options
for the project's development. A further update will be provided to the market
upon a material development. Whilst the discussions have been ongoing we have
continued to work on the necessary approvals to move the project towards
production.
The appointment of Robert Mosig as a Non-Executive Director to the Board in
March 2024 has provided a high level of expertise associated with all aspects
of the Pinderi Hills project. With renewed market interest in silver, the
geological team has pushed forward with site visits and additional data
analysis, intending to develop a programme to understand the potential for
developing an economically mineable resource.
On 29 April 2024, the Company announced a Lithium joint venture ("JV")with
Errawarra Resources Limited. (ASX: ERW) ("Errawarra") has the potential to
earn up to a 50% interest in the lithium rights of the Pinderi Project by
spending up to A$4 million, with the first A$500,000 being by way of a
subscription for common shares in the capital of Alien. Subsequent to the
Period end, as announced on 27 August 2024, a first pass sampling programme
which covered the entire tenement package of 175km², provided encouraging
results and confirmed the lithium fertility of the JV tenements. Follow-up
work programmes are in the planning stage.
The exploration and development of our projects has been well supported by new
and existing shareholders through capital raisings in June and August 2024.
We thank our shareholders for their continued support, and we remain committed
to building value in these promising projects in the year ahead.
Guy Robertson
Executive Chairman
27 September 2024
Financial Highlights
In the six months ended 30 June 2024, the Company made an operating loss of
US$579,000 (30 June 2023: US$1.6 million) and a basic and diluted loss per
share of US$0.008 (30 June 2023: US$0.031).
During the Period, Alien raised £630,000 with the placement of 466,666,667
shares at a price of 0.135 pence per share and a further £600,000 post 30
June 2024, with the placement of 545,454,545 shares at a price of 0.11 pence
per share.
The Company entered into a convertible loan note facility during the period
with a facility limit of A$2 million, of which A$1.1 million has been drawn.
The Company issued 130,000,000 shares at 0.2 pence per share as part of the
Pinderi Hills Lithium farm out (see Pinderi Hills below).
Overview of Operations
Iron Ore Projects
Hancock Project
The Hancock Iron Ore Project is within 20km of the established regional mining
hub of Newman ("Hancock" or the "Hancock Project"). The Hancock Project
borders licences held by Fortescue Metals Group, Hancock Prospecting, BHP
Billiton (Mount Whaleback), Hope Downs and Mineral Resources.
The project has a Mineral Resource Estimate of 8.4Mt @ 60% Fe JORC Mineral
Resource, including an upgraded Indicated Resource of 4.5Mt@ 60.2% Fe. It
shows an average annualised EBITDA of A$39m, a pre-tax NPV10 of A$146m and a
pre-tax IRR of 133% and an initial low development Capital Cost of A$28m.
During the period the Company appointed a boutique Western Australian
investment bank to consider funding options including joint venture and
off-take funding options for the Hancock Iron Ore Project. The Company has
spent substantial time negotiating a potential joint venture transaction for
this project, and during this process further interested parties have
approached the Company to provide offtake funding, joint venture funding for
the development of the project, and also outright purchase of the project.
These various options are currently being assessed by the Company with a view
to delivering maximum value for shareholders. The Company is similarly
reviewing offers for the smaller iron ore projects of Vivash and Brockman.
Further announcements will be made in due course as appropriate should these
various discussions progress.
The Company continues to progress all required approvals and permits.
Nickel, Copper, Platinum Group Elements ("PGE"), Silver ("Ag") & Base
Metals
Pinderi Hills Projects
Elizabeth Hill, along with the Munni Munni PGM prospect, lies within the
Company's Pinderi Hills province, a unified significant tenement holding of
180km(2) south of Karratha, a major Western Australian mining and industrial
hub.
The Elizabeth Hill Silver Mine and deposit is a valuable asset in the Pinderi
Hills project area. The Company is the first single entity to own and
consolidate the Munni Munni, Ni-PGM project, Elizabeth Hill project and the
surrounding Pinderi Hills area into a single, unified coherent tenement
holding.
The Pinderi Hills area incorporates:
1. Elizabeth Hill: The Elizabeth Hill project, historically Australia's
highest-grade silver deposit, is situated approximately 45km south of Karratha
in the 61,000km(2) Achaean Pilbara Block of the Pilbara Craton. The project is
well located, lying 40km from the deep-water port at Dampier and 8km from rail
infrastructure. The known, major silver deposit at the Elizabeth Hill Mine
Site, which has a non-compliant JORC 2004 Resource estimate of 4.05 million
ounces ("Moz") Ag at greater than 200 grams per tonne ("g/t"), and produced
1.2 Moz silver at 2,195 g/t (70.24 oz/t Ag). The Elizabeth Hill Silver Project
was mined between 1998 and 2000 via underground mining, primarily between the
62m and 102m levels. Ag production totalled approximately 16,800 tonnes of ore
grading 2,195 g/t Ag generating 1,170,000 ounces of Ag, including some very
large specimens of native Ag.
2. Munni Munni: The Munni Munni PGE deposit historic JORC 2004 Resource
estimated 24Mt @ 2.9g/t PGE and gold for 2.2Moz PGE and gold consisting of
1.14Moz palladium, 0.83Moz palatinum, 152Koz gold and 76Koz rhodium.
3. Several other deposits that are prospective for platinum, palladium,
rhodium, silver, nickel, copper, lead, and zinc, all of which are metals that
are required to support the push into renewable energy across the world.
4. On 29 April 2024, the Company announced it had entered into a joint
venture with Errawarra in respect of the lithium rights on the Pinderi Hills
project where Errawarra has the potential to earn up to a 50% interest in the
lithium rights in the project by spending up to A$4 million, with the first
A$500,000 being by way of a subscription of 130,000,000 shares in the Company
at a price of 0.2 pence per share.
Outlook
The Company is continuing to progress both the projects at Hancock and Pinderi
Hills, as it seeks to optimise a funding strategy to extract maximum value for
its shareholders.
For iron ore, this includes accelerating exploration at the Mallina Target,
west of the Hancock Mining Lease, and exploring opportunities to expand the
mineable resource through discussions with adjacent owners.
At Pinderi Hills, the team are focused on executing the exploration programme
developed with Dr Jayson Myers to expand the existing resources, as outlined
in the release dated 30 May 2024.
Appointments and Resignations
During the Period:
1. Alwyn Vorster resigned as Non-Executive Director of Alien Metals on
15 March 2024.
2. Robert Mosig was appointed as Non-Executive Director of Alien Metals
on 15 March 2024.
For further information please visit the Company's website at
www.alienmetals.uk
(file:///C:/Users/jamesmahony/Westend%20Corporate%20Dropbox/Alien%20Metals/Financial/FY2023/230630%20Interims/www.alienmetals.uk)
, or contact:
Alien Metals Limited
Guy Robertson
Strand Hanson (Financial and Nominated Adviser)
James Harris / James Dance / Robert Collins
Tel: +44 (0) 207 409 3494
Zeus Capital Limited (Joint Broker)
Harry Ansell / Katy Mitchell
Tel: +44 (0) 207 220 1666
CMC Markets (Joint Broker)
Douglas Crippen
Tel: +44 (0) 203 003 8632
Yellow Jersey (Financial PR)
Charles Goodwin / Shivantha Thambirajah / Zara McKinlay
Tel: +44 (0) 203 004 9512
Notes to Editors:
Alien Metals Limited is a mining exploration and development company listed on
the AIM market of the London Stock Exchange (AIM: UFO). The Company's focus is
on delivering a profitable direct shipping iron ore operation from it 90%
Hancock Iron Ore Project in the central Pilbara region of Western Australia.
The Hancock tenements currently contain a JORC-compliant resource of 8.4Mt
iron ore @ 60% Fe and offer significant exploration upside which is targeted
to deliver a mining operation of 2Mtpa for 10 years.
These Hancock Project tenements have direct access to the Great Northern
Highway, which provides an essential export route to export facilities at Port
Hedland, from where more than 500Mt of iron ore is exported annually (30% of
global production). The Company also has an interest in two iron ore
exploration projects Brockman and Vivash, located in the West Pilbara.
The Company owns the Elizabeth Hill Silver Project, located near Karratha in
the Pilbara, which consists of the Elizabeth Hill Mining Lease and exploration
tenements surrounding the historical silver mine which has produced some of
Australia's highest-grade silver ore during the late 1990's. The Company also
owns one of Australia's largest PGM deposits, Munni Munni which hosts a
deposit containing a historic resource of 2.2Moz PGM (Palladium, Platinum,
Gold, and Rhodium).
Market Abuse Regulation (MAR) Disclosure
This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law
by virtue of the European Union (Withdrawal) Act 2018 ("MAR") as amended by
virtue of the Market Abuse (Amendment) (EU Exit) Regulations 2019, and is
disclosed in accordance with the Company's obligations under Article 17 of
MAR.
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
(Tabular amounts rounded to nearest thousand of US dollars unless otherwise
stated)
6 months to 30 June 2024 Unaudited 6 months to 30 June 2023 Unaudited
$ $
Continuing operations
Other income - 9,000
Administration expenses (579,000) (1,655,000)
Operating Loss (579,000) (1,646,000)
Other net gains/(losses) - -
Loss Before Interest and Income Tax (579,000) (1,646,000)
Net finance Income 1,000 4,000
Corporation tax expense - -
Loss for the period (578,000) (1,642,000)
Profit/(Loss) attributable to:
- owners of the Company (578,000) (1,642,000)
Profit/(Loss) for the period (578,000) (1,642,000)
Other comprehensive income
Items that may be subsequently reclassified to profit or loss
Currency translation differences (288,000) (475,000)
Total comprehensive (loss)/income (866,000) (2,117,000)
Attributable to: 0
- owners of the Company (866,000) (2,117,000)
Total comprehensive income (loss)/income (866,000) (2,117,000)
Loss per share (cents) from continuing operations attributable to owners of (0.008) (0.031)
the Parent - Basic and diluted
CONDENSED CONSOLIDATED BALANCE SHEET
(Tabular amounts rounded to nearest thousand of US dollars unless otherwise
stated)
Notes As at As at As at
30 June 2024 31 December 2023 Audited 30 June 2023
Unaudited $ Unaudited
$ $
Non-Current Assets
Intangible assets 4 16,935,000 16,593,000 16,647,000
Assets under construction 421,000 455,000 456,000
Plant and equipment 10,000 10,000 -
Right of use asset 12,000 24,000 -
17,378,000 17,082,000 17,103,000
Current Assets
Trade and other receivables 120,000 261,000 382,000
Cash and cash equivalents 697,000 676,000 145,000
817,000 937,000 527,000
Total Assets 18,195,000 18,019,000 17,630,000
Non-Current Liabilities
Deferred tax liabilities - - 44,000
Current Liabilities
Trade and other payables 668,000 726,000 1,004,000
Short-term lease liability - 26,000 -
Convertible note 637,000 571,000 -
Total current Liabilities 1,305,000 1,323,000 1,004,000
Total Liabilities 1,305,000 1,323,000 1,048,000
Net Assets 16,890,000 16,696,000 16,582,000
Equity Attributable to owners of the Company
Share Capital 83,157,000 82,097,000 79,620,000
Warrant reserve 834,000 834,000 739,000
Share based payment reserve 854,000 854,000 1,253,000
Foreign exchange translation reserve (9,000) 279,000 220,000
Retained losses (67,946,000) (67,368,000) (65,250,000)
Total equity attributable to owners of the Company 16,890,000 16,696,000 16,582,000
Total Equity 16,890,000 16,696,000 16,582,000
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
(Tabular amounts rounded to nearest thousand of US dollars unless otherwise
stated)
Share capital Warrant reserve Foreign exchange translation reserve Retained losses Total equity
$ $ Share based payment reserve $ $ $
$
As at 1 January 2023 79,586,000 739,000 771,000 695,000 (63,647,000) 18,144,000
Comprehensive income
(Loss) for the period - - - - (1,642,000) (1,642,000)
Other comprehensive income
Currency translation differences - - - (475,000) - (475,000)
Total comprehensive income - - - (475,000) (1,642,000) (2,117,000)
Issue of ordinary shares 34,000 - - - - 34,000
Options granted - - 521,000 - - 521,000
Exercise of options - - (39,000) - 39,000 -
Total transactions with owners 34,000 - 482,000 - 39,000 555,000
As at 30 June 2023 79,620,000 739,000 1,253,000 220,000 (65,250,000) 16,582,000
Share capital Warrant reserve Foreign exchange translation reserve Retained losses Total equity
$ $ Share based payment reserve $ $ $
$
As at 1 January 2024 82,097,000 834,000 854,000 279,000 (67,368,000) 16,696,000
Comprehensive income - - - - - -
(Loss) for the period - - - - (578,000) (578,000)
Other comprehensive income - - - - - -
Currency translation differences - - - (288,000) - (288,000)
Total comprehensive income - - - (288,000) (578,000) (866,000)
Issue of ordinary shares 1,125,000 - - - - 1,125,000
Cost of share issue (65,000) - - - - (65,000)
Total transactions with owners 1,060,000 - - - - 1,060,000
As at 30 June 2024 83,157,000 834,000 854,000 (9,000) (67,946,000) 16,890,000
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
(Tabular amounts rounded to nearest thousand of US dollars unless otherwise
stated)
30 June 2024 Unaudited 30 June 2023 Unaudited
$ $
Note
Cash flows from operating activities
Loss before taxation (578,000) (1,642,000)
Adjustments for: -
Depreciation - 2,000
Share based payments - 521,000
Exchange difference 23,000 (348,000)
(Increase) in trade and other receivables 141,000 (20,000)
Increase in trade and other payables (58,000) 559,000
Net cash used in operations (472,000) (928,000)
Cash flows from investing activities
Expenditure on assets under construction - -
Purchase of intangible assets (668,000) (1,228,000)
Purchase of fixed assets - (3,000)
Net cash used in investing activities (668,000) (1,231,000)
Cash flows from financing activities
Proceeds from issue of shares 1,125,000 -
Proceeds from convertible note 66,000 -
Cost of share issue (65,000) 34,000
Net cash from financing activities 1,126,000 34,000
Decrease in cash and cash equivalents (14,000) (2,125,000)
Cash and cash equivalents at beginning of period 676,000 2,177,000
Exchange differences on cash 35,000 93,000
Cash and cash equivalents at end of period 697,000 145,000
NOTES TO THE INTERIM FINANCIAL STATEMENTS
1. General Information
The principal activity of Alien Metals Ltd ('the Company') and its
subsidiaries (together 'the Group') is the exploration and development of
mineral resource assets. The Company's shares are listed on the AIM Market of
the London Stock Exchange. The Company is incorporated and domiciled in the
British Virgin Islands.
The address of the Company's registered office is Craigmuir Chambers PO BOX
71, Road Town, Tortola, British Virgin Islands, Virgin Islands.
2. Basis of Preparation
The consolidated interim financial statements have been prepared in accordance
with the requirements of the AIM Rules for Companies. As permitted, the
Company has chosen not to adopt IAS 34 "Interim Financial Statements" in
preparing this interim financial information. The consolidated interim
financial statements should be read in conjunction with the annual financial
statements for the year ended 31 December 2023, which have been prepared in
accordance with UK-adopted International Accounting Standards ("UK-adopted
IAS").
The consolidated interim financial statements set out above does not
constitute statutory accounts. They have been prepared on a going concern
basis in accordance with the recognition and measurement criteria of
UK-adopted IAS. Statutory financial statements for the year ended 31 December
2023 were approved by the Board of Directors on 30 June 2024.
The consolidated interim financial statements are presented in United States
dollars as the Company believes it to be the most appropriate and meaningful
currency for investors. The functional currencies of the Company and its
subsidiary in Mexico, Compañía Minera Estrella de Plata SA de CV ("CMEP"),
are pounds sterling and Mexican pesos respectively. Functional currency of all
four Australia based subsidiaries A.C.N. 643 478 371 Pty Ltd, Iron Ore Company
of Australia Pty Ltd, Alien Metals Australia Pty Ltd and Mallina Exploration
Pty Ltd is Australian Dollar.
Going concern
Given the Group's current cash position and its demonstrated ability to raise
capital, the Directors have a reasonable expectation that the Group has
adequate resources to continue in operational existence for the foreseeable
future. Thus, they continue to adopt the going concern basis of accounting
preparing the consolidated interim financial statements for the period ended
30 June 2024. Whilst the Directors are confident that they will be able to
secure the necessary funding as and when required, the current conditions do
indicate the existence of a material uncertainty that may cast doubt regarding
the applicability of the going concern assumption.
The factors that were extant at 31 December 2023 are still relevant to this
report and as such reference should be made to the going concern note and
disclosures in the 2023 Annual Report.
Risks and uncertainties
The Board continuously assesses and monitors the key risks of the business.
The key risks that could affect the Group's medium-term performance and the
factors that mitigate those risks have not substantially changed from those
set out in the Group's 2023 Annual Report and Financial Statements, a copy of
which is available on the Group's website: https://www.alienmetals.uk. The key
financial risks are liquidity risk, capital management risk, price risk,
foreign exchange risk, credit risk and investment risk.
Critical accounting estimates
The preparation of condensed interim financial statements requires management
to make estimates and assumptions that affect the reported amounts of assets
and liabilities, income and expenses, and disclosure of contingent assets and
liabilities at the end of the reporting period. Significant items subject to
such estimates are set out in note 4 of the Group's 2023 Annual Report and
Financial Statements. Actual amounts may differ from these estimates. The
nature and amounts of such estimates have not changed significantly during the
interim period.
3. Accounting Policies
The same accounting policies, presentation and methods of computation have
been followed in these condensed interim financial statements as were applied
in the preparation of the Group's annual financial statements for the year
ended 31 December 2023 except for the impact of the adoption of the Standards
and interpretations described below and new accounting policies adopted as a
result of changes in the Group.
3.1 Changes in accounting policy and disclosures
(a) New and amended standards mandatory for the first time for the financial
periods beginning on or after 1 January 2024
The International Accounting Standards Board (IASB) issued various amendments
and revisions to International Financial Reporting Standards and IFRIC
interpretations. The amendments and revisions were applicable for the period
ended 30 June 2024 but did not result in any material changes to the Financial
Statements of the Group.
b) New standards, amendments and interpretations in issue but not yet
effective or not yet endorsed and not early adopted
Standards, amendments and interpretations that are not yet effective and have
not been early adopted are as follows:
Standard Impact on initial application Effective date
IAS 21 (Amendment) Lack of exchangeability *1 January 2025
The Group is evaluating the impact of the new and amended standards
above which are not expected to have a material impact on future Group
Financial Statements.
4. Intangible assets - exploration and evaluation costs
The movement in capitalised exploration and evaluation costs during the period
was as follows:
Exploration & Evaluation at Cost and Net Book Value $
Balance as at 1 January 2024 16,593,000
Additions 668,000
Asset acquisitions
Foreign exchange -326,000
As at 30 June 2024 16,935,000
5. Loss per share
The calculation of loss per share is based on a retained loss of $578,000 for
the six months ended 30 June 2024 (six months ended 30 June 2023: $1,642,000)
and the weighted average number of shares in issue in the period ended 30 June
2024 of 6,958,460,842 (six months ended 30 June 2023: 5,324,836,801).
No diluted earnings per share is presented for the six months ended 30 June
2024 or six months ended 30 June 2023 as the effect on the exercise of share
options would be to decrease the loss per share.
6. Post balance sheet events
On 1 July 2024, Independent Non-Executive Director, Ms Elizabeth Henson, and
related family were issued a total of 6,000,000 new common shares of no par
value each in the Company at a price of 0.20 pence per share, via Ixia
Advisors Limited, in lieu of a cash settlement of Director fees.
On 19 July 2024, the Company changed its Joint Broker, WH Ireland Limited to
Zeus Capital Limited, following the completion of the acquisition by Zeus
Capital Limited of the WH Ireland Capital Markets Division (from WH Ireland
Limited)
On 1 August 2024, The Company issued 545,454,545 new ordinary shares at a
price of 0.11 pence per share to raise £600,000 GBP.
7. Approval of interim financial statements
The condensed interim financial statements were approved by the Board of
Directors on 30 September 2024.
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