Picture of Anglesey Mining logo

AYM Anglesey Mining News Story

0.000.00%
gb flag iconLast trade - 00:00
Basic MaterialsHighly SpeculativeMicro CapValue Trap

REG-Anglesey Mining PLC: Half-year Report 30 September 2019

Anglesey Mining plc

Half yearly report for the six months to 30 September 2019

Chairman’s Statement and Management Report

In late 2018 Anglesey signed a Project Development and Cooperation Agreement
with QME Mining Technical Services, a division of QME Ltd an Irish mining
contractor, to carry out an agreed programme of design, engineering and
optimisation studies relating to the future development of the Parys Mountain
zinc, copper lead project, located on the island of Anglesey in Wales and
significant progress continues to be made with very encouraging results.

As reported in our 2018 Annual Report, published in July 2019, QME first
completed detailed reviews of mine development capital and mine operating
costs of the basic mine plan, using their extensive experience in mine
development in Ireland and throughout Europe, and identified the potential for
improvements in the development plans contained in the Scoping Study completed
by Micon International Limited and Fairport Engineering Limited in 2017.

The QME studies indicated that the Parys Mountain project can be improved if
the potential mineable tonnage can be increased by using a lower cut-off grade
and generating a revised mine development plan. More recent studies by QME
have suggested that there is significant potential for the inclusion of
inferred resources from other zones into an updated Scoping Study or
Feasibility Study

Higher tonnage available for mining

The QME work suggests that at a production cut-off of $48 per tonne,
approximately 5.25 million tonnes in situ within the designed stoping blocks
would be available within the White Rock and Engine Zones for consideration in
a detailed life-of-mine schedule. This 5.25 million tonnes is substantially
higher than the mineable tonnage of 2.1 million tonnes used in the 2017
Scoping Study. It is important to note that QME made no changes to the
underlying resource estimates which were calculated by Micon in 2012. However,
it does have to be noted that by reducing the cut-off, the grade of material
that would be delivered to the mill would be lower overall than that used in
the 2017 scoping study.

Potential inclusion of inferred resources in other zones

The revised production plan generated by QME was initially limited to just the
White Rock and Upper Engine Zones, on the same basis as used by Micon in the
2017 Scoping Study. As an extension of this initial process, QME have now
reviewed all of the inferred resources originally reported by Micon in
deposits other than White Rock and Upper Engine zones. These other areas are
the Lower Engine, Garth Daniel and Northern Copper zones. These zones are
located within an area of approximately 1.3 km east-west and 370 metres
north-south and lie immediately to the northeast of the White Rock and Engine
zones, at depths from 180 metres to 620 metres below surface which is roughly
consistent with though a little deeper than the indicated resources in the
Engine Zone.

QME reported that a first-pass estimation has identified 5.5 million tonnes of
currently modelled inferred resources that could be considered for inclusion
in a second-pass of detailed design. This 5.5 million tonnes is defined as the
sum of the mining-scale units associated with the ‘Lower Engine Zone’, the
‘Garth Daniel Zone’ and the ‘Northern Copper Zone’, above a cut-off of
$48/t (Base-Case Prices), with no mining factors applied, and represents 35%
of the global inferred resource, which at 0% cut-off had been previously
estimated by Micon as 15.6 million tonnes.

It should be noted that the cut-off used of $48/t has been derived from the
break-even point estimated for the White Rock and Engine zones and therefore
is an iterative guide only at this stage and may not be totally applicable to
these other zones.

The second pass of design work by QME is ongoing with completion scheduled for
the end of 2019. However, the same two-pass design system was used on the
White-Rock and Engine Zones and resulted in conversion rate of 83.5% between
the first and second passes. Should the same conversion rate be found then it
is possible to envisage a total of approximately 4.6 million tonnes of
inferred resources, undiluted, in the ‘Lower Engine Zone’, the ‘Garth
Daniel Zone’ and the ‘Northern Copper Zone’, being considered for
inclusion in a life-of-mine schedule. The potential 4.6 million tonnes of
inferred resources in these additional zones would be in addition to the 5.25
million tonnes previously estimated for the White Rock and Engine Zones. That
is to say a total of potentially mineable resources in excess of 10 million
tonnes, in all categories, across five zones at Parys Mountain.

Longer potential mine life or higher production rate

We have long believed that the potential for the Parys Mountain site was far
greater than that developed from the code-consistent indicated resources. It
is Anglesey’s opinion that the potentially mineable mineralisation that has
been identified by QME’ s work is an indication of the overall prospectivity
of the Parys Mountain project and of the potential for demonstrating five
deposits or zones with combined resources in the range of 10 million tonnes.

Whilst the inclusion of inferred material does not meet the strict criteria
for inclusion into reserve definitions under the applicable codes and as
generally accepted for feasibility studies by banks for loan evaluation
purposes, it is believed that for the purposes of the current QME exercise
such a process will give good guidance for future development planning
purposes. The inferred resources are targets for future exploration drilling
and it is uncertain if future drilling will result in the deposits being
delineated as mineable resources.

To bring some if not all off this additional material to a compliant level
will require significant additional exploration, to be followed by analysis
and calculations by a certified Competent Person. Some of that work can be
carried out by surface diamond drilling but much would be more efficiently
explored by drilling from underground locations sited closer to the target
blocks.

Using the updated QME 2019 block model, there is an opportunity to develop a
new mineable block model for the White Rock and Engine zones by re-defining
the mining shapes and the stoping plan, followed by a new development plan and
schedule.

If a mining plan was developed using this lower cut-off grade, then at a
constant 1,000 tonnes per day mill throughput rate as used in the 2017 Scoping
Study, the project life for the White Rock and Engine zones would be
significantly extended from the initial eight years indicated in the Scoping
Study to a mine life of approximately 18 years.

In addition, should we be able to positively report a total compliant figure
somewhere around this 10 million tonnes, and from the QME work to date we are
of the opinion that such a target is well founded on the current drill
intercepts, then the mine plan including annual production rates and life of
mine would be significantly enhanced.

The economic trade-off between a longer mine life and reduced head-grade will
need to be further studied to determine what, if any, would be the net
financial benefit. It will then likely require further studies to determine if
there is an ‘optimum’ cut-off grade that maximises the financial returns.

Iron Ore

The iron ore market in the first half of 2019 was characterized by significant
supply disruptions, particularly in Brazil and Australia, which caused a rapid
rise in the iron ore price. After beginning 2019 at US$70 per tonne (62% Fe
CFR China basis), the price rose to a 5 year high of US$126/tonne in early
July. The price has subsequently come back to around US$90/tonne range, where
it is expected to remain for the balance of 2019.

The weaker price in the second half of 2019 is thought to be due to a
declining outlook for global steel demand resulting from expectations of a
slowing world economy due to the impact of protectionist-oriented global trade
tensions. As iron ore is the main steelmaking ingredient, any decline in
anticipated steel production has a direct impact on iron ore demand.

The premium for higher grade material at 65% Fe and particularly for 68% Fe
continues to increase, which could ultimately be very beneficial for the
Grangesberg project and for Labrador’s Elizabeth project.

Grangesberg - Sweden

Anglesey continues to manage the Grangesberg iron ore project in Central
Sweden. Site activities have been kept at a low level but the continuing
support of premium iron prices for the premium product that Grangesberg would
produce have encouraged us to seek out alternative development strategies to
move the project forward.

We believe that the superior geographic location of the Grangesberg deposit
and its projected premium product specification could enable such alternative
approaches to be beneficial for the group in the coming periods.

Labrador - Canada

The group continues to hold a 12% interest in Labrador Iron Mines Holdings
Limited (LIM) which owns extensive iron ore resources and facilities in the
Schefferville area of Labrador and Quebec in Canada.

LIM holds measured and indicated direct shipping mineral resources of
approximately 55 million tonnes at an average grade of 56.8%. In addition, LIM
holds the Elizabeth Taconite Project, which has current inferred mineral
resource estimated of 620 million tonnes at an average grade of 31.8% Fe.
Elizabeth represents an opportunity to develop a major new taconite operation
in the Schefferville region of the Labrador Trough which would produce a
high-grade saleable iron ore product, which would attract premium prices in
the current iron ore market. These resources are kept on a stand-by care and
maintenance basis and subject to financing are positioned to resume operations
as soon as economic conditions warrant.

LIM’s former James Mine and the Silver Yards processing facility have been
in a progressive reclamation since the termination of mining at the James Mine
in 2014. LIM has now substantially completed its environmental regulatory
requirements, which principally relate to rehabilitation of the former James
Mine, the Silver Yards processing site and related infrastructure. In the
summer of 2019, LIM conducted a field exploration program on 13 of its mineral
licences located in Labrador. This was the first exploration program
undertaken in a number of years.

Operations

As always, we have kept our corporate and operating costs at the lowest level
consistent with maintaining our assets in good order. We will continue this
policy going forward but there will inevitably be some increase in costs as
project development activities increase. In the short term this will likely
need to be funded by additional but relatively small equity issues.

Financial results

The group had no revenue for the period. The loss for the six months to 30
September 2019 was £156,600 (2018 £137,117) and the expenditures on the
mineral property in the period were £26,527 compared to £25,755 in the
comparative period. Net current assets at 30 September 2019 were £110,724
compared to liabilities of £61,312 at 31 March 2019. Further funding will be
required for continuing expenses as well as the maintenance and development of
the group’s mineral properties. Completion of the QME Study will continue to
be carried out at no cost to Anglesey.

Outlook

Whilst there has been some short-term instability in commodity prices during
the second half of 2019, we still believe that ultimately the fundaments of
supply and demand will override the near-term problems created by the China-US
trade wars, and we also remain encouraged by the ongoing support for iron ore
prices.

The Agreement with QME has seen the development of a substantial amount of
work on mine planning and project optimisation on the Parys Mountain project
at no cost to Anglesey and at no dilution to Anglesey’s current
shareholders. The QME studies have indicated that the Parys Mountain project
can be greatly enhanced if the potential mineable tonnage can be increased by
using a lower cut-off grade, by the upgrade and inclusion of inferred
resources and by generating a revised mine development plan.

We remain very positive about the prospects for the company as a result of the
latest QME studies. It should be emphasised that this optimisation work will
have to be supported by an updated scoping study or pre-feasibility study. If
eventually supported, then the size and life of the Parys Mountain mine would
be company changing. We do recognise that much remains to be done and that
additional funds, and possibly industry partners, will be required to enable
the project to reach its true potential, but the possibilities are there.

We continue to review the development opportunities for our iron ore projects,
albeit with inherent complexities resulting from the fluctuating commodity
price. We are also actively reviewing some other opportunities for Anglesey in
base metal projects in favourable geopolitical environments and will advance
these where possible.

We would like to thank shareholders for their continued interest in the
company.

John F Kearney

Chairman

12th December 2019

Unaudited condensed consolidated income statement

                                                    Notes   Unaudited six months ended 30 September 2019  Unaudited six months ended 30 September 2018 
 All operations are continuing                                                   £                                             £                       
                  Revenue                                                                              -                                             - 
                  Expenses                                                                      (71,493)                                      (57,477) 
                  Equity-settled employee benefits                                                     -                                             - 
                  Investment income                                                                   60                                            52 
                  Finance costs                                                                 (85,190)                                      (79,719) 
                  Foreign exchange movement                                                           23                                            27 
                                                                                                                                                       
 Loss before tax                                                                               (156,600)                                     (137,117) 
                                                                                                                                                       
                  Taxation                            8                                                -                                             - 
                                                                                                                                                       
 Loss for the period                                  7                                        (156,600)                                     (137,117) 
                                                                                                                                                       
                  Loss per share                                                                                                                       
                  Basic - pence per share                                                         (0.1)p                                        (0.1)p 
                  Diluted - pence per share                                                       (0.1)p                                        (0.1)p 
                                                                                                                                                       

Unaudited condensed consolidated statement of comprehensive income

 Loss for the period                                                                                              (156,600)  (137,117)   
                       Other comprehensive income                                                                                        
                       Items that may subsequently be reclassified to profit or loss:                                                    
                       Exchange difference on translation of foreign holding                                       (22,397)   (21,265)   
                                                                                                                                         
                                                                                                                                         
 Total comprehensive loss for the period                                                                          (178,997)  (158,382)   
                                                                                                                                         

All attributable to equity holders of the company

Unaudited condensed consolidated statement of financial position

                                                             Notes   Unaudited 30 September 2019  Audited 31 March 2019 
                                                                                 £                         £            
 Assets                                                                                                                 
                Non-current assets                                                                                      
                Mineral property exploration and evaluation    9                      15,192,415             15,165,888 
                Property, plant and equipment                                            204,687                204,687 
                Investments                                    10                         97,795                 97,795 
                Deposit                                                                  123,521                123,460 
                                                                                                                        
                                                                                      15,618,418             15,591,830 
                                                                                                                        
                Current assets                                                                                          
                Other receivables                                                         24,010                 19,215 
                Cash and cash equivalents                                                161,595                  6,012 
                                                                                                                        
                                                                                         185,605                 25,227 
                                                                                                                        
                                                                                                                        
 Total assets                                                                         15,804,023             15,617,057 
                                                                                                                        
 Liabilities                                                                                                            
                Current liabilities                                                                                     
                Trade and other payables                                                (74,881)               (86,539) 
                                                                                                                        
                                                                                                                        
                                                                                        (74,881)               (86,539) 
                                                                                                                        
                Net current assets/(liabilities)                                         110,724               (61,312) 
                                                                                                                        
                Non-current liabilities                                                                                 
                Loans                                                                (3,914,343)            (3,706,722) 
                Long term provision                                                     (50,000)               (50,000) 
                                                                                                                        
                                                                                     (3,964,343)            (3,756,722) 
                                                                                                                        
 Total liabilities                                                                   (4,039,224)            (3,843,261) 
                                                                                                                        
                                                                                                                        
 Net assets                                                                           11,764,799             11,773,796 
                                                                                                                        
 Equity                                                                                                                 
                Share capital                                  11                      7,380,591              7,286,914 
                Share premium                                                         10,248,309             10,171,986 
                Currency translation reserve                                            (79,513)               (57,116) 
                Retained losses                                                      (5,784,588)            (5,627,988) 
                                                                                                                        
                                                                                                                        
 Total shareholders' funds                                                            11,764,799             11,773,796 
                                                                                                                        

All attributable to equity holders of the company

Unaudited condensed consolidated statement of cash flows

                                                                              Notes         Unaudited six months ended 30 September 2019  Unaudited six months ended 30 September 2018 
                                                                                                                 £                                             £                       
 Operating activities                                                                                                                                                                  
                          Loss for the period                                                                                  (156,600)                                     (137,117) 
                          Adjustments for:                                                                                                                                             
                          Investment income                                                                                         (60)                                          (52) 
                          Finance costs                                                                                           85,190                                        79,719 
                          Foreign exchange movement                                                                                 (23)                                          (27) 
                                                                                                                                                                                       
                                                                                                                                (71,493)                                      (57,477) 
                          Movements in working capital                                                                                                                                 
                          (Increase)/decrease in receivables                                                                     (4,733)                                         1,812 
                          (Decrease)/increase in payables                                                                        (7,751)                                           694 
                                                                                                                                                                                       
 Net cash used in operating activities                                                                                          (83,977)                                      (54,971) 
                                                                                                                                                                                       
 Investing activities                                                                                                                                                                  
                          Mineral property exploration and evaluation                                                           (30,487)                                      (24,632) 
                                                                                                                                                                                       
 Net cash used in investing activities                                                                                          (30,487)                                      (24,632) 
                                                                                                                                                                                       
 Financing activities                                                                                                                                                                  
                          Issue of share capital                                                                                 170,000                                             - 
                          Loan received                                                                                          100,000                                             - 
                          Currency translation changes                                                                                24                                             - 
                                                                                                                                                                                       
 Net cash generated from financing activities                                                                                    270,024                                             - 
                                                                                                                                                                                       
 Net increase/(decrease) in cash and cash equivalents                                                                            155,560                                      (79,603) 
 Cash and cash equivalents at start of period                                                                                      6,012                                       137,113 
 Foreign exchange movement                                                                                                            23                                            27 
                                                                                                                                                                                       
 Cash and cash equivalents at end of period                                                                                      161,595                                        57,537 
                                                                                                                                                                                       

All attributable to equity holders of the company

Unaudited condensed consolidated statement of changes in group equity

                                                          Share      Share     Currency translation reserve   Retained losses     Total     
                                                         capital    premium                  £                        £              £      
                                                            £           £                                                                   
 Equity at 1 April 2019 - audited                        7,286,914  10,171,986                       (57,116)       (5,627,988)  11,773,796 
 Total comprehensive income for the period:                                                                                                 
 Exchange difference on translation of foreign holding           -           -                       (22,397)                 -    (22,397) 
 Loss for the period                                             -           -                              -         (156,600)   (156,600) 
 Total comprehensive income for the period                       -           -                       (22,397)         (156,600)   (178,997) 
                                                                                                                                            
 Shares issued                                              93,677     106,323                              -                 -     200,000 
 Share issue expenses                                            -    (30,000)                              -                 -    (30,000) 
                                                                                                                                            
 Equity at 30 September 2019 - unaudited                 7,380,591  10,248,309                       (79,513)       (5,784,588)  11,764,799 
                                                                                                                                            
 Comparative period                                                                                                                         
 Equity at 1 April 2018 - audited                        7,286,914  10,171,986                       (42,021)       (5,393,367)  12,023,512 
                                                                                                                                            
 Total comprehensive income for the period:                                                                                                 
 Exchange difference on translation of foreign holding           -           -                       (21,265)                 -    (21,265) 
 Loss for the period                                             -           -                              -         (137,117)   (137,117) 
 Total comprehensive income for the period                       -           -                       (21,265)         (137,117)   (158,382) 
                                                                                                                                            
 Equity at 30 September 2018 - unaudited                 7,286,914  10,171,986                       (63,286)       (5,530,484)  11,865,130 

All attributable to equity holders of the company

Notes to the accounts

1.  Basis of preparation

This half-yearly financial report comprises the unaudited condensed
consolidated financial statements of the group for the six months ended 30
September 2019. It has been prepared in accordance with the Disclosure and
Transparency Rules of the Financial Conduct Authority, the requirements of IAS
34 - Interim financial reporting (as adopted by the European Union) and using
the going concern basis. The directors are not aware of any events or
circumstances which would make this inappropriate. It was approved by the
board of directors on 12 December 2019. It does not constitute financial
statements within the meaning of section 434 of the Companies Act 2006 and
does not include all of the information and disclosures required for annual
financial statements. It should be read in conjunction with the annual report
and financial statements for the year ended 31 March 2019 which is available
on request from the company or may be viewed at www.angleseymining.co.uk.

The financial information contained in this report in respect of the year
ended 31 March 2019 has been extracted from the report and financial
statements for that year which have been filed with the Registrar of
Companies. The report of the auditors on those accounts did not contain a
statement under section 498(2) or (3) of the Companies Act 2006 and was not
qualified. The half-yearly results for the current and comparative periods
have not been audited or reviewed.

2.  Significant accounting policies 

The accounting policies applied in these unaudited condensed consolidated
financial statements are consistent with those set out in the annual report
and financial statements for the year ended 31 March 2019.

New accounting standards

Standards, amendments and interpretations adopted in the current financial
year:

The adoption of the following standards, amendments and interpretations in the
current financial year has not had a material impact on the financial
statements of the group or the company. All financial assets which were
classified as loans and receivables and under IAS 39 are now classified as
financial assets at amortised cost under IFRS 9 with no changes in the
measurement of those financial assets. Financial assets which were classified
as available for sale under IAS 39 are now classified as financial assets at
FVOCI under IFRS9 and measured at fair value. The directors’ assessment of
fair value of these financial assets has been disclosed in note 14. No
separate transitional note is presented because there are no adjustments as a
result of the transition to IFRS9.

IFRS 2 Share-based Payment: Amendment in relation to classification and
measurement of share-based payment transactions

IFRS 9 Financial Instruments

IFRS 15 Revenue from Contracts with Customers, including the subsequent
clarifications

Annual Improvements to IFRSs (2014 - 2016)        

IFRIC 22 Foreign Currency Transactions and Advance Consideration  

Standards, amendments and interpretations in issue but not yet effective:

                                                                                                                                                   Effective date                                  
 Amendments to IFRS 9 Financial Instruments: Prepayment features with negative compensation                                                        1 January 2019                                  
 IFRS 16 Leases                                                                                                                                    1 January 2019                                  
 Annual Improvements to IFRSs (2015 - 2017)                                                                                                        1 January 2019                                  
 Amendment to IAS 19 Employee Benefits: Plan amendment, curtailment or settlement                                                                  1 January 2019                                  
 Amendment to IAS 28 Investments in Associates and Joint Ventures: Amendment in relation to Long-term interests in Associates and Joint Ventures.  1 January 2019.                                 
 IFRIC 23 Uncertainty over Income Tax Treatments.                                                                                                  1 January 2019.                                 
 Amendments to IAS 1 and IAS 8: Definition of Material                                                                                             Expected endorsement date to be 1 January 2020  
 Amendment to IFRS 3 Business Combinations: Definition of a Business                                                                               Expected endorsement date to be 1 January 2020  
 Conceptual Framework (Revised) and amendments to related references in IFRS Standards                                                             Expected endorsement date to be 1 January 2020  
 IFRS 17 Insurance Contracts                                                                                                                       Expected endorsement date not available         

The directors’ impact assessment indicates that the adoption of the above
pronouncements will have no material impact on the financial statements in the
period of initial application other than disclosure. The directors have not
yet fully assessed the impact IFRS16 on these financial statements but believe
that since the group is a lessee in respect of mineral leases only, the
standard will not be applicable to the group’s financial statements.

There have been no other new or revised International Financial Reporting
Standards, International Accounting Standards or Interpretations that are in
effect since that last annual report that have a material impact on the
financial statements.

3.  Risks and uncertainties

The principal risks and uncertainties set out in the group's annual report and
financial statements for the year ended 31 March 2019 remain the same for this
half-yearly financial report and can be summarised as: development risks in
respect of mineral properties, especially in respect of permitting and metal
prices; liquidity risks during development; and foreign exchange risks. More
information is to be found in the 2019 annual report – see note 1 above.

4.  Statement of directors' responsibilities

The directors confirm to the best of their knowledge that: (a) the unaudited
condensed consolidated financial statements have been prepared in accordance
with the requirements of IAS 34 Interim financial reporting (as adopted by the
European Union); and (b) the interim management report includes a fair review
of the information required by the FCA's Disclosure and Transparency Rules
(4.2.7 R and 4.2.8 R). This report and financial statements were approved by
the board on 12 December 2019 and authorised for issue on behalf of the board
by Bill Hooley, chief executive officer and Danesh Varma, finance director.

5.  Activities 

The group is engaged in mineral property development and currently has no
turnover. There are no minority interests or exceptional items.

6.  Earnings per share

The loss per share is computed by dividing the loss attributable to ordinary
shareholders of £0.157 million (loss to 30 September 2018 £0.137m), by
184,569,825 (2018 – 177,608,051) - the weighted average number of ordinary
shares in issue during the period. Where there are losses the effect of
outstanding share options is not dilutive.

7.  Business and geographical segments

There are no revenues. The cost of all activities charged in the income
statement relates to exploration and development of mining properties. The
group's income statement and assets and liabilities are analysed as follows by
geographical segments, which is the basis on which information is reported to
the board.

Income statement analysis

                                                                                                  
                                      Unaudited six months ended 30 September 2019                
                               UK        Sweden - investment  Canada - investment     Total       
                                £                £                    £                 £         
 Expenses                      (71,493)                    -                    -      (71,493)   
 Investment income                   60                    -                    -            60   
 Finance costs                 (77,048)              (8,142)                    -      (85,190)   
 Exchange rate movements              -                   23                    -            23   
                                                                                                  
 Loss for the period          (148,481)              (8,119)                    -     (156,600)   

   

                                                                                                
                                      Unaudited six months ended 30 September 2018              
                               UK        Sweden - investment  Canada - investment     Total     
                                £                £                    £                 £       
 Expenses                      (57,477)                    -                    -      (57,477) 
 Investment income                   52                    -                    -            52 
 Finance costs                 (72,117)              (7,602)                    -      (79,719) 
 Exchange rate movements              -                   27                    -            27 
                                                                                                
 Loss for the period          (129,542)              (7,575)                    -     (137,117) 

Assets and liabilities

 `                                                30 September 2019                        
                                UK       Sweden investment  Canada investment    Total     
                                £               £                  £               £       
 Non current assets          15,520,623             97,794                  1   15,618,418 
 Current assets                 184,486              1,119                  -      185,605 
 Liabilities                (3,708,564)          (330,660)                  -  (4,039,224) 
                                                                                           
 Net assets/(liabilities)    11,996,545          (231,747)                  1   11,764,799 
                                                                                           
                                                Audited 31 March 2019                      
                                UK       Sweden investment  Canada investment        Total 
                                £               £                  £               £       
 Non current assets          15,494,035             97,794                  1   15,591,830 
 Current assets                  24,149              1,078                  -       25,227 
 Liabilities                (3,543,174)          (300,087)                  -  (3,843,261) 
                                                                                           
 Net assets/(liabilities)    11,975,010          (201,215)                  1   11,773,796 

8.  Deferred tax

There is an unrecognised deferred tax asset of £1.3 million (31 March 2019 -
£1.3m) which, in view of the group's results, is not considered to be
recoverable in the short term. There are also capital allowances, including
mineral extraction allowances, exceeding £12.5 million (unchanged from 31
March 2019) unclaimed and available. No deferred tax asset is recognised in
the condensed financial statements.

9.  Mineral property exploration and evaluation costs

Mineral property exploration and evaluation costs incurred by the group are
carried in the unaudited condensed consolidated financial statements at cost,
less an impairment provision if appropriate. The recovery of these costs is
dependent upon the successful development and operation of the Parys Mountain
project which is itself conditional on finance being available to fund such
development. During the period expenditure of £26,527 was incurred (six
months to 30 September 2018 - £25,755). There have been no indicators of
impairment during the period.

10.  Investments

                            Labrador  Grangesberg  Total  
                                   £            £       £ 
 At 1 April 2018                   1       86,659  86,660 
 Change during the period          -       11,135  11,135 
 At 31 March 2019                  1       97,794  97,795 
 Change during the period          -            -       - 
                                                          
 At 30 September 2019              1       97,794  97,795 
                                                          

Labrador:   The group’s investment is classified as ‘unquoted’ and is
held at a nominal value of £1.

Grangesberg:   The group has an 8.7% (unchanged from 31 March 2019) holding
in Grangesberg Iron AB (an unquoted Swedish company) and a right of first
refusal over shares amounting to a further 51% of that company. This
investment has been initially recognised and subsequently measured at cost, on
the basis that the shares are not quoted and a reliable fair value is not able
to be estimated.

11.  Share capital

                           Ordinary shares of 1p     Deferred shares of 4p      Total   
 Issued and                Nominal        Number     Nominal        Number   Nominal    
 fully paid                 value £                   value £                 value £   
                                                                                        
 At 1 April 2019          1,776,081  177,608,051    5,510,833  137,770,835  7,286,914   
 Issued in the period        93,677    9,367,681                               93,677   
                                                                                        
 At 30 September 2019     1,869,758  186,975,732    5,510,833  137,770,835  7,380,591   
                                                                                        

12.  Financial instruments

 Group                        Financial assets classified at fair value through other comprehensive income      Financial assets measured at amortised cost   
                                       30 September 2019                          31 March 2019                  30 September 2019         31 March 2019      
                                                                   £                                        £                       £                       £ 
 Investments                                                  97,795                                   97,795                       -                       - 
 Deposit                                                           -                                        -                 123,521                 123,460 
 Other receivables                                                 -                                        -                  24,010                  19,215 
 Cash and cash equivalents                                         -                                        -                 161,595                   6,012 
                                                                   -                                        -                                                 
                                                              97,795                                   97,795                 309,126                 148,687 
                                                                                                                                                              
                                            Financial liabilities measured at amortised cost                                                                  
                                       30 September 2019                          31 March 2019                                                               
                                                                   £                                        £                                                 
 Trade payables                                             (21,202)                                 (30,067)                                                 
 Other payables                                             (53,679)                                 (56,472)                                                 
 Loans                                                   (3,914,343)                              (3,706,722)                                                 
                                                                                                                                                              
                                                         (3,989,224)                              (3,793,261)                                                 
                                                                                                                                                              

13.  Events after the reporting period 

None.

14.  Related party transactions 

None.

Anglesey Mining plc

Directors:

                                       
John Kearney                               
Chairman

                                                       
Bill
Hooley                                     
Chief executive

                                                       
Danesh Varma                              
Finance director

                                                       
David
Lean                                    
Non executive (retired 5 September 2019)

                                                       
Howard Miller                                Non
executive

Parys Mountain site: Parys Mountain, Amlwch, Anglesey, LL68 9RE   Phone
01407 831275

London office: Painter's Hall Chambers, 8 Little Trinity Lane, London, EC4V
2AN   Phone 020 7062 3782

Registered office: Tower Bridge House, St. Katharine's Way, London, E1W 1DD

Web site:
www.angleseymining.co.uk                                        
E-mail: mail@angleseymining.co.uk

Shares listed on the London Stock Exchange - LSE:AYM          
    Company registration number 1849957

Share registrars: Link Asset Services  www.linkassetservices.com

Share dealing phone 0871 664 0445    Helpline phone 0871 664 0300

Calls cost 12p per minute plus your phone company’s access charge. If you
are outside the United Kingdom, please call +44 371 664 0300. Calls outside
the United Kingdom will be charged at the applicable international rate. Lines
are open between 9.00am and 5.30pm, Monday to Friday excluding public holidays
in England and Wales.



Copyright (c) 2019 PR Newswire Association,LLC. All Rights Reserved

Recent news on Anglesey Mining

See all news