REG - Altona Rare Earths - Interim Results
28/03/2024 07:15
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RNS Number : 6695I Altona Rare Earths PLC 28 March 2024
28 March 2024
ALTONA RARE EARTHS PLC
("Altona" or "the Company")
INTERIM RESULTS
Altona (LSE: REE), a resource exploration and development company focused on
Critical Raw Materials in Africa, is pleased to announce its Interim Results
for the six months ended 31 December 2023.
HIGHLIGHTS
· Publication of the Group's first JORC compliant Mineral Resource
Estimate at Monte Muambe
o 13.6 million tons at 2.42% TREO((1)) using a cut-off grade of 1.5% TREO
o Including 0.31% NdPrO((2)) representing 42,500 contained tons NdPrO;
· Validation of the potential of the Rare Earths at Monte Muambe
supported by the publication of Snowden Optiro's Scoping Study
· Increase in Altona's holding in its Monte Muambe Rare Earths Project
to 51%
· Mining Licence application lodged with Mozambique Government
· Advanced metallurgical studies ongoing on Monte Muambe, the results
of which are expected to lead to a significant improvement of the project's
opex and capex
· Post year end portfolio expansion and diversification started,
acquisition of the Kabompo South Copper project in Zambia
· Further funding without shareholder dilution achieved through the
signing of a short-term loan facility of up to £250,000
Cedric Simonet, CEO of Altona, commented, "The second half of 2023 saw many
achievements for Altona, including the Group's first JORC Mineral Resource
Estimate, Scoping Study, the increase of Monte Muambe's holding to 51%, and a
Mining Licence application, and demonstrates our ability to deliver on time
and budget.
"2024 will see Altona continue to derisk Monte Muambe, in particular through
on-going mineralogical and metallurgical test work the results of which are
expected to have a favourable impact on the project's economic parameters, but
also through the licensing process.
"2024 will also be a year of transformation for Altona, as we are currently
expanding and diversifying its portfolio, with a focus on projects having a
low-entry cost with a clear pathway to early results and to majority
ownership. The acquisition of the exciting Kabompo South copper project in
Zambia marks a first step in this direction."
Notes
(1) TREO = Total Rare Earths Oxide
(2) NdPrO = sum of Nd(2)O(3) and Pr(6)O(11)
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-ends-
Altona Rare Earths Plc
Cedric Simonet,
CEO
+44 (0) 7778 866 108
Louise Adrian,
CFO
+44 (0) 7721 492 922
Christian Taylor Wilkinson, Business
Development
+44 (0) 7795 168 157
Novum Securities Ltd (Corporate
Finance)
+44 (0) 20 7399 9400
David
Coffman
Daniel Harris
Allenby Capital Ltd (Joint
Broker)
+44 (0)20 3328 5656
Kelly Gardiner / Guy McDougall (Sales)
Nick Athanas (Corporate Finance)
Optiva Securities (Joint
Broker)
+44 (0) 20 3411 1882
Daniel
Ingram
About Altona Rare Earths Plc
Altona is a resource exploration and development company focused on Critical
Raw Materials in Africa. The Company is listed on the Main Market of the
London Stock Exchange with the ticker "REE".
Rare Earths are a group of 17 chemical elements, many of which are critical to
the World's ongoing transition from carbon-based to renewable energies, and to
the defence and communication sectors.
The Company is currently developing Monte Muambe, its flagship Magnet Rare
Earths Project, located in Northwest Mozambique. The Project was acquired in
June 2021, and the Company has so far drilled over 7,800m, and defined a
maiden JORC Mineral Resource Estimate of 13.6 million tons at 2.42% TREO. A
Competent Person Report including the Scoping Study for Monte Muambe was
published on 18 October 2023. The Project is now at Prefeasibility Study
stage, with a focus on metallurgical testing and process.
Altona is presently assessing new critical raw material projects acquisition
opportunities, including both Rare Earths and non Rare Earths projects.
Operational Review
Activities during the reporting period focused mainly on advancing the Monte
Muambe rare earths project, including the completion of a scoping study, the
increase of the Company's holding in the project to 51% and lodging a mining
licence application. The Company is pleased to confirm that it has
successfully completed all the deliverables which were set out in the May 2023
London Stock Exchange IPO Prospectus.
Between July and September 2023, drilling and trenching activities at Monte
Muambe allowed the Company to confirm the geometry of the Target 4 mineralised
body and resulted in a record drilling intercept of 76m at 3.43% Total Rare
Earths Oxide ("TREO") from surface. The presence of high grade rare earth ore
at Target 3 was also confirmed, with 30m at 2.74% TREO from surface,
underpinning the potential for future resource increases (see below).
In June 2023, the Company engaged the industry-wide respected consultant
Snowden Optiro to prepare a maiden JORC Mineral Resource Estimate ("MRE") and
a scoping study.
The Monte Muambe MRE published on 25 September 2023 covered Target 1 and
Target 4 totalled 13.6 million tonnes at 2.42% TREO, using a cut off grade of
1.5% TREO. 58% of the reported tonnage was in the Indicated category, with the
remainder in the Inferred category.
On 18 October 2023, Altona published an updated Competent Person Report
("CPR") including a scoping study ("Study") for an 18 years Life of Mine
("LoM") rare earths mining operation based on the Monte Muambe resource.
The Study considered the extraction and processing of 750,000 tonnes per ore
at LoM strip ratio of 1.6. Processing will involve both beneficiation to
produce a rare earths concentrate, and further processing of this concentrate
through a hydrometallurgical plant, to produce a Mixed Rare Earths Carbonate
("MREC") for export.
With a post tax NPV8 of US$ 283.3 million and a post tax IRR of 25%, the Study
demonstrated the potential of Monte Muambe to become a viable mining
operation. This has given the Company full confidence to move the project into
the Prefeasibility Study ("PFS") stage. The Study also identified considerable
upside potential which will be developed further in the PFS, including:
· Increase of the resource base, as well as of the LoM and/or ore
extraction rate;
· Mining parameters optimisation;
· Processing parameters improvement, in particular with respect to the
concentrate grade (mineralogy and metallurgy studies are currently underway);
· Possible production of fluorspar (fluorite), another Critical Raw
Material present at Monte Mumabe, as a by-product of rare earths; and
· Evaluation of the possibility of onsite, in-country or regional rare
earths separation and refining ahead of export.
The completion of the Study marked the end of the project's Phase 2 and
triggered the increase of Altona's holding in Monte Muambe to 51%, which was
announced on 6 December 2023. The Monte Muambe project is now at PFS stage,
with a strong focus on the ore metallurgy.
Following the positive results of the Study, the Company lodged an application
for a 25 years Mining Concession (the local term for a mining licence), which
is currently being processed by the Mozambique Government.
Financial Review
During the reporting period, the Company successfully completed all the
planned deliverables as set out in the May 2023 Prospectus.
Non-Current Assets increased from £1.4m to £1.8m representing the increased
investment in Monte Muambe and the increase of the Company's holding from 20%
to 51% in the project.
The financial loss of the Group for the six months ended 31 December 2023 was
£690,000 (H1 2022: £412,000) resulting in the decrease of Net Assets from
£1.9m to £1.4m.
In December 2023, cognisant of the unfavourable macroeconomic environment, the
Company proactively took several measures to ensure it could continue priority
Phase 3 (PFS) value-adding activities beyond the Phase 2 deliverables, while
considering the best interest of its shareholders.
These measures included:
· Focusing Monte Muambe PFS activities on metallurgy, the results of
which are expected to lead to a significant improvement of the project's opex
and capex;
· The on-going assessment of alternative options to fund the entire
Monte Muambe PFS;
· Putting in place extended cash preservation measures including
reducing corporate costs as well as deferring or paying in equity part of the
directors and senior management remuneration (two of the directors continue to
be only paid in equity as set out in the Prospectus);
In December 2023, the Company entered into a £250,000 loan facility with
Catalyse Capital Limited. £200,000 of the loan was drawn down in Q1 2024. Net
cash flow used in operations was £758,000 and net cash outflow from investing
activities was £278,000. The Company also was able to reduce its payables by
£251,000 in the period (a balance from the delayed listing in May 2023). The
cash balance was £73,000 at the period end, and c.£150,000 at the date of
this report.
Post Period End Activity
Significant progress was made on the Monte Muambe rare earths project during
the reporting period.
Monte Muambe PFS activities are currently focused on advanced metallurgical
testing. A 100kg representative ore sample is currently undergoing
mineralogical feed characterisation at SGS Lakefields in Canada, using some of
the most advanced tools available including Electron Microprobe Analysis and
TIMA-X analysis. Following this, metallurgical test work will initially be
aimed at producing a high-grade Rare Earths concentrate in order to improve
the economics of the Mixed Rare Earth Carbonate production process. The
possible separation and recovery of fluorspar, another critical raw material
present in the ore at Monte Muambe, will also be assessed. Flotation test
results are expected in Q2 2024.
Separation of the 15 Rare Earths present at Monte Muambe from their ore, with
a focus on Neodymium, Praseodymium, Terbium and Dysprosium, is a complex
process. Metallurgy is a critical component of rare earths projects
development. Beside process design and costing, key outputs will also include
products specifications to enable discussions with potential off-takers.
Corporate Strategy Update
In February 2024, the Board of Directors undertook a careful and thorough
review of the Company's corporate strategy. As Monte Muambe is advancing,
Altona recognised that the time was right for the Company to expand and
diversify its portfolio of projects in Africa, including Rare Earths, but also
non-Rare Earths critical raw materials such as copper, lithium and niobium.
The Company is therefore currently actively assessing potential new
opportunities, with the objective of selecting a small number of quality
projects having a low-entry cost and a clear pathway to early results and to
majority ownership.
The recently announced acquisition of the Kabompo South Copper project in
Zambia, which was owned by Freeport McMoRan until the major's strategic
decision to exit Zambia in 2020, is a first step in the implementation of this
updated corporate strategy. Field activities will start in Q2 2024.
The Kabompo South project has seen prior grassroot exploration including 4,000
line kilometre of ground magnetometer survey and a partial leach soil
geochemistry survey over a 4 kilometre square grid. This work highlighted the
presence of a large copper gold silver anomaly in the Northeastern part of the
licence area, overlapping a possible demagnetised zone.
The project is located in the Mufumbe District of Northwestern Province,
Zambia. It has a surface area of approximately 616 km(2) and is valid for
copper, cobalt, nickel, lead, zinc, gold and diamonds. Kabompo South is
located 4 km west of the Kamweji copper occurrence, and 60 km southwest of the
Mufumbwe copper deposit (22 million tonnes at 1.6% Cu), along strike.
As Altona moves forward with this strategy, the Company remains acutely aware
of the necessity of conserving cash resources and protecting shareholder
value.
Outlook
In 2024, Altona plans to continue derisking Monte Muambe through on-going
mineralogical and metallurgical testwork, the results of which are expected to
have a favourable impact on the project's economic parameters, but also
through the licensing process.
As this progresses, the Company will continue considering possible
alternatives for funding the project PFS, including actively seek a possible
strategic investor.
To complement Monte Muambe, the Company will continue assessing opportunities
to acquire a limited number of carefully selected critical raw materials
projects to expand and diversify its portfolio, within its management and
funding capacity. This is expected to enable the Company to maintain a higher
proportion of money-in-the-ground, as well as to build more resilience and a
stronger news flow. The Company will also continue ensuring its overheads
costs structure is as lean as possible.
We believe that the above actions will improve Altona's risk profile and
strengthen the Company's value proposition for its shareholders.
Interim Financial Report
This interim financial report does not include all the notes of the type
normally included in an annual financial report. Accordingly, this report
should be read in conjunction with the financial statements for the year ended
30 June 2023, and any public announcements made by Altona Rare Earths Plc
during and subsequent to the interim reporting period.
Altona Rare Earths Plc, (the "Company") is a company registered in England and
Wales. Its registered offices is at Eccleston Yards, 25 Eccleston Place,
London SW1W 9NF.
Principal Risks
The principal risks and uncertainties for the remaining six months of the
financial year remain the same as those contained within the annual report and
accounts as at 30 June 2023.
Related- party transactions
See note 15 for a list of the related party transactions that have taken place
in the first six months of the current financial year. There have been no
changes in the related party transactions described in the last annual report
that could have a material effect on the financial position or performance of
the Group in the first six months of the current financial year.
Post Reporting Date Events
See note 16 for a list of these events.
Statement of directors' responsibilities
The directors confirm that these condensed interim financial statements have
been prepared in accordance with UK adopted International Accounting Standard
34, 'Interim Financial Reporting' and the Disclosure Guidance and Transparency
Rules sourcebook of the United Kingdom's Financial Conduct Authority and that
the interim management report includes a fair review of the information
required by DTR 4.2.7 and DTR 4.2.8, namely:
· an indication of important events that have occurred during the first
six months and their impact on the condensed set of financial statements, and
a description of the principal risks and uncertainties for the remaining six
months of the financial year; and
· material related-party transactions in the first six months and any
material changes in the related-party transactions described in the last
annual report.
By order of the board
Cedric Simonet
Chief Executive Officer
28 March 2024
CONDENSED CONSOLIDATED STATEMENT OF PROFT OR LOSS AND
OTHER COMPREHENSIVE INCOME
FOR THE HALF YEAR ENDED 31 DECEMBER 2023
Notes Unaudited Unaudited
Half-year ended Half-year ended
31 Dec 2023 31 Dec 2022
Continuing operations: £'000 £'000
Administrative expenses 4 (616) (387)
Operating loss (616) (387)
Finance costs 5 (74) (25)
Loss before taxation (690) (412)
Income tax expense - -
Loss for the period (690) (412)
Total loss is attributable to:
Owners of Altona Rare Earths Plc (659) (369)
Non-controlling interests (31) (43)
(690) (412)
Other comprehensive income:
Items that may be reclassified subsequently to profit and loss:
Exchange differences on translation of foreign operations (16) 16
Total comprehensive loss for the period (706) (396)
Total comprehensive loss is attributable to:
Owners of Altona Rare Earths Plc (676) (354)
Non-controlling interests (30) (42)
(706) (396)
Earnings per share (expressed in pence per share)
- Basic and diluted 6 (0.83p) (1.40p)
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023
Unaudited Audited
31 Dec 2023 30 June 2023
£'000 £'000
ASSETS
Non-current assets
Intangible assets 7 1,618 1,290
Property, plant and equipment 8 140 146
Total non-current assets 1,758 1,436
Current assets
Trade and other receivables 9 130 168
Cash and cash equivalents 73 1,130
Total current assets 203 1,298
Total assets 1,961 2,734
LIABILITIES
Current liabilities
Trade and other payables 10 (341) (593)
Convertible loan notes 11 (263) (256)
Total current liabilities (604) (849)
Total liabilities (604) (849)
NET ASSETS 1,357 1,885
EQUITY
Share capital 12 2,259 2,239
Share premium 23,013 22,950
Share-based payment reserve 167 121
Other equity-CLN reserve 12 12
Foreign exchange reserve - 17
Retained losses (24,019) (23,360)
Capital and reserves attributable to the owners of Altona Rare Earths plc 1,432 1,979
Non-controlling interests (75) (94)
TOTAL EQUITY 1,357 1,885
CONDENSED CONSOLIDATED STATEMENT OF CASHFLOWS
FOR THE HALF YEAR ENDED 31 DECEMBER 2023
Unaudited Unaudited
Half-year ended Half-year ended
31 Dec 31 Dec
2023 2022
£'000 £'000
Cash flow from operating activities
Loss for the period before taxation (690) (412)
Adjusted for:
Depreciation 12 9
Finance costs (including warrants) 74 25
Shares issued for services/ share-based payments 52 12
Foreign exchange movements 22 33
(530) (333)
(Decrease)/ increase in receivables 23 (127)
(Decrease)/ increase in payables (251) 353
Net cash outflow used in operating activities (758) (107)
Cash flows from investing activities
Expenditure on intangible assets (183) (270)
Expenditure on tangible assets 8 (9) (9)
Expenditure on increase in interest in subsidiaries (86) -
Net cash outflow from investing activities (278) (279)
Cash flows from financing activities
Proceeds from loans - 150
Finance costs paid (21) (2)
Net cash (outflow)/ inflow from financing activities (21) 148
Decrease in cash and cash equivalents in period (1,057) (238)
Cash and cash equivalents at beginning of period 1,130 283
Cash and cash equivalents at end of period 73 45
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE HALF YEAR ENDED 31 DECEMBER 2023
Share capital Share premium Share-based payment reserve Foreign exchange reserve CLN Retained losses NCI Total shareholders' equity
Issue
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Balance at 30 June 2022 1,790 21,404 14 1 - (22,139) (20) 1,050
Comprehensive income
Loss for the period - - - - - (369) (43) (412)
Foreign exchange movement - - - 16 - - - 16
NCI share in FX - - - - - - 16 16
Total comprehensive loss for the period - - - 16 - (369) (27) (380)
Transactions with owners recognised directly in equity
Share-based payment - - 12 - - - - 12
Total transactions with owners recognised directly in equity - - 12 - - - - 12
Balance at 31 December 2022 1,790 21,404 26 (47) 682
17 - (22,508)
Comprehensive income
Loss for the period - - - - - (852) (32) (884)
Foreign exchange movement - - - - - - - -
NCI share in FX - - - - - - (15) (15)
Total comprehensive loss for the period - - - - - (852) (47) (899)
Transactions with owners recognised directly in equity
Issue of shares 449 1,797 - - - - - 2,246
Cost of shares issued - (251) 41 - - - - (210)
Share-based payment - - 54 - - - - 54
CLN Issue - - - 12 - - 12
Total transactions with owners recognised directly in equity 449 1,546 95 - 12 - - 2,102
Balance at 31 June 2023 2,239 22,950 121 17 12 (23,360) (94) 1,885
Comprehensive income
Loss for the period - - - - - (659) (31) (690)
Foreign exchange movement - - - (17) - - 1 (16)
Change in NCI asset - - - - - - 49 49
Total comprehensive loss for the period - - - - - (659) 19 (657)
Transactions with owners recognised directly in equity
Issue of shares 20 63 - - - - - 83
Share-based payment - - 46 - - - - 46
Total transactions with owners recognised directly in equity 20 63 46 - - - - 129
Balance at 31 December 2023 2,259 23,013 167 - 12 (24,019) (75) 1,357
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS
FOR THE HALF YEAR ENDING 31 DECEMBER 2023
1. GENERAL INFORMATION AND BASIS OF PREPARATION OF HALF YEAR
REPORT
(a) General Information
Altona Rare Earths Plc, (the "Company") is a company registered in England and
Wales. Its registered offices is at Eccleston Yards, 25 Eccleston Place,
London SW1W 9NF.
The principal activity of the Company and its subsidiaries (the "Group") is in
Rare Earths and the exploration and the development of appropriate exploration
projects, focusing on opportunities in Africa.
These condensed interim financial statements were approved for issue on 28
March 2024.
These condensed interim financial statements do not comprise statutory
accounts within the meaning of section 434 of the Companies Act 2006.
Statutory accounts for the year ended 30 June 2023 were approved by the
board of directors on 24 October 2023 and delivered to the Registrar of
Companies. The auditor's report on those financial statements was unqualified
but did include a reference to the material uncertainty surrounding going
concern, to which the auditors drew attention by way of emphasis of matter and
did not contain a statement under s498 (2) - (3) of Companies Act 2006.
The Company's auditors have not reviewed these condensed interim financial
statements.
(b) Basis of Preparation
This condensed consolidated interim financial report for the half-year
reporting period ended 31 December 2023 has been prepared in accordance with
the UK-adopted International Accounting Standard 34, 'Interim Financial
Reporting' and the Disclosure Guidance and Transparency Rules sourcebook of
the United Kingdom's Financial Conduct Authority.
This interim financial report does not include all the notes of the type
normally included in an annual financial report. Accordingly, this report
should be read in conjunction with the financial statements for the year ended
30 June 2023, which has been prepared in accordance with both "International
Accounting Standards in conformity with the requirements of the Companies Act
2006" and "International Financial Reporting Standards adopted pursuant to
Regulation (EC) No 1606/2002 as it applies in the European Union", and any
public announcements made by Altona Rare Earths Plc during the interim
reporting period.
The financial statements have been prepared on a going concern basis. The
Group's assets are not currently generating revenues, an operating loss has
been reported and an operating loss is expected in the 12 months subsequent to
the date of these financial statements. The Company has recently entered
into a debt facility of £250,000 and will look to raise further funds within
the next 12 months to complete Phase 3 of its project at Monte Muambe. The
directors remain confident of making further cost savings and/or raising
finance when required and, therefore, the directors consider it appropriate to
prepare the financial statements on a going concern basis. The financial
statements do not include the adjustments that would result if the Group were
unable to continue as a going concern.
The accounting policies adopted are consistent with those of the previous
financial year and corresponding interim reporting period. There were no new
or amended accounting standards that required the Group to change its
accounting policies. The directors also considered the impact of standards
issued but not yet applied by the Group and do not consider that there will be
a material impact of transition on the financial statements.
The Group's results are not subject to seasonal variations.
2. CRITICAL ESTIMATES AND JUDGEMENTS
The preparation of interim financial statements requires management to make
judgements, estimates and assumptions that affect the application of
accounting policies and the reported amounts of assets and liabilities, income
and expense. Actual results might differ from these estimates.
In preparing these condensed interim financial statements, the significant
judgements made by management in applying the Group's accounting policies and
the key sources of estimation uncertainty were the same as those that applied
to the financial statements for the year ended 30 June 2023.
3. SEGMENT INFORMATION
For the purpose of IFRS 8, the Chief Operating Decision Maker "CODM" takes the
form of the board of directors. The directors are of the opinion that the
business of the Group focused on two reportable segments as follows:
· Head office, corporate and administrative, including parent company
activities of raising finance and seeking new investment and exploration
opportunities, all based in the UK and
· Mineral exploration, all based in Mozambique.
The geographical information is the same as the operational segmental
information shown below.
Corporate and Administrative (UK) Mineral exploration (Mozambique)
Half year ending 31 December 2023
Total
£'000 £'000 £'000
Operating loss before and after taxation 650 690
40
Segment total assets (net of investments in subsidiaries) 479 1,961
1,482
Segment liabilities (573) (31) (604)
Corporate and Administrative (UK) Mineral exploration (Mozambique)
Half year ending 31 December 2022
Total
£'000 £'000 £'000
Operating loss before and after taxation 358 412
54
Segment total assets (net of investments in subsidiaries) 171 1,599
1,428
Segment liabilities (829) (89) (918)
4. ADMINISTRATIVE EXPENSES
Unaudited Unaudited
Half year ended Half year ended
31 Dec 2023 31 Dec 2022
£'000 £'000
Legal and professional 193 88
Regulatory fees 5 6
Wages and Salaries* 272 207
Depreciation 12 9
Other 134 77
616 387
*This increase includes a one-off payment - see note 15 for further details.
5. FINANCE COSTS
Unaudited Unaudited
Half year ended Half year ended
31 Dec 2023 31 Dec 2022
£'000 £'000
Interest paid and payable on loans 21 25
Unwinding of discount on CLN 7 -
Share-based payment on loans (cost of warrants) 46 -
74 25
6. LOSS PER SHARE
The basic loss per share is derived by dividing the loss for the period
attributable to ordinary shareholders by the weighted average number of shares
in issue.
Unaudited Unaudited
Half year ended Half year ended
31 Dec 2023 31 Dec 2022
Loss for the period (£'000) (690) (412)
Weighted average number of shares - expressed in thousands 83,560 29,465
Basic loss per share - expressed in pence (0.83p) (1.40p)
As the inclusion of the potential ordinary shares would result in a decrease
in the loss per share they are considered to be anti-dilutive and, as such,
the diluted loss per share calculation is the same as the basic loss per
share.
7. INTANGIBLE ASSETS
Exploration and evaluation assets
£'000
Cost and carrying amount
At 1 July 2023 1,290
Exploration and evaluation assets acquired at fair value 166
Additions to exploration assets 162
At 31 December 2023 1,618
On 6 December 2023, the Company increased its holding in Monte Muambe Mining
Limitada from 20% to 51%.
8. TANGIBLE FIXED ASSETS
Buildings Heavy machinery Precision machinery and office equipment Vehicles Total assets
£'000 £'000 £'000 £'000 £'000
Cost
At 1 July 2023 31 86 33 24 174
Additions (inc FX) 4 1 4 - 9
Foreign exchange - (2) (1) - (3)
At 31 December 2023 35 85 36 24 180
Accumulated Depreciation
At 1 July 2023 1 13 7 7 28
Depreciation charge for the period 1 5 3 3 12
At 31 December 2023 2 18 10 10 40
Net Book Value
At 30 June 2023 30 73 26 17 146
At 31 December 2023 33 67 26 14 140
9. TRADE AND OTHER RECEIVABLES
Unaudited Audited
31 December 30 June
2023 2023
£'000 £'000
Taxes and social security receivable 112 154
Prepayments and other receivables 18 14
130 168
10. TRADE AND OTHER PAYABLES
Unaudited Audited
31 December 30 June
2023 2023
£'000 £'000
Trade payables 81 257
Accruals and other payables 260 336
341 593
11. LOAN NOTES
Unaudited Audited
31 December 30 June
2023 2023
£'000 £'000
Borrrowings 263 256
On 20 December 2023, the Company entered into a short-term loan facility of up
to £250,000 with Catalyse Capital Limited ("CCL"). The loan carries a fixed
interest rate of 20%. CCL also received 2.5 pence warrants equal to 200% of
the loan value, with a four year expiration date from drawdown. The loan was
not drawn in 2023 and is repayable on 20 December 2024.
On 1 February 2023, the Company created a Convertible Loan Note in the
principle amount of £300,000, of which £275,000 has been subscribed for by
the Broker, Optiva Securities Limited. The Loan notes carry a rate of
interest of 15% per annum, and have a maturity date of 15 months unless
redeemed earlier in accordance with their terms.
12. SHARE CAPITAL
2023
No. £'000
Ordinary Shares
Ordinary shares at 1 July 2023 82,403,199 824
Shares issued in the half year 2,042,535 20
TOTAL ORDINARY SHARES at 31 December 2023 84,445,734 844
Deferred Shares at 0.09p
Deferred shares at 1 July 2023 and 31 December 2023 1,411,956,853 1,271
Deferred Shares at 9p
Deferred shares at 1 July 2023 and 31 December 2023 1,602,434 144
TOTAL SHARES at 31 December 2023 1,498,005,021 2,259
13. WARRANTS
The Company has issued the following warrants, which are still in force at the
balance sheet date.
Number of Warrants Exercise Price Expiry date
Placing Warrants 16,365,944 12p 31/03/25
Directors Warrants 1,100,000 12p 10/03/24
Brokers Warrants 3,780,617 5-14p 6/10/24 - 9/06/26
Admission Warrants 80,000,000 10p and 20p 9/06/25 - 9/06/26
CLN Warrants 11,000,000 10p and 15p 9/06/26
Loan Warrants 1 7,500,000 5p 09/06/26
Loan Warrants 2 12,000,000 2.5p 20/12/27
131,746,561
14. COMMITMENTS AND CONTINGENT LIABILITIES
As at 31 December 2023 the only capital commitments of the Company relate to
the Farm-Out Agreement in Mozambique. The next phase of the Agreement
commits the Company to a further minimum spend of US$2,000,000 from the start
of April 2023 for a period of 24 months, which can be extended for a further
12 months.
15. RELATED PARTY TRANSACTIONS
At 31 December 2023, deferred salaries and fees due to Directors and Senior
Management amounted to a total of £164,000. On 10 January 2024, the Company
issued 1,521,373 ordinary shares to Directors and Senior Management in lieu of
salaries and fees amounting to £60,000.
On 8 November 2023, the Business Development Officer (Chrisitan
Taylor-Wilkinson) entered into a new contract with the Company, reducing his
salary from £150,000 to £72,000 per annum. He received a one-off fee of
£50,000 for this change in contract terms. This was payable 50% in equity
and the remaining 50% in cash.
16. POST REPORTING DATE EVENTS
Following the issue of the shares in note 15, the total voting rights in the
Company were 85,967,107.
£200,000 of the loan facility from CCL has been drawn down at the date of
this Document and the cash balance was c.£150,000.
On 28 March 2024, the Company announced that it had entered into an agreement
with Susteneri Group Limited ("Susteneri") and with the beneficial owners of
Phelps Dodge Mining (Zambia) Limited ("Target") to acquire the entire issued
share capital of Phelps Dodge Mining (Zambia) Limited, the registered holder
of Large Scale Exploration Licence 21403-HQ-LEL, located in the Mufumbe
District of Northwestern Province of Zambia ("Tenement").
The consideration for the transfer of the exclusivity over the Tenement from
Susteneri to Altona was 800,000 ordinary Altona shares at a price of 5p.
The consideration for the transfer of the Target from its present owners to
Altona includes:
· US$ 40,000 payable in Altona ordinary shares on completion, from
which will be deducted any costs incurred by Altona to renew the Tenement and
to transfer the Target; and
· US$ 150,000 payable in Altona ordinary shares 12 months after
completion.
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