REG-Anglesey Mining Plc: Half-year Report
19/12/2023 12:15
Half yearly report for the six months to 30 September 2023
Chairman’s Statement and Management Report
During the reporting period significant advances were made at the company’s
key asset, Parys Mountain, with the following developments:
* Submission of the Pre-Application Inquiry to the North Wales Mineral
Planning Authority and hosting an on-site hearing for over 20 statutory
consultee groups.
* Further resource update work for the Morfa Dhu zone (White Rock and Engine
Zone) with 93% of the contained resources now being in the Measured and
Indicated categories.
* Commencement of confirmatory metallurgical test work and pre-concentration
trade-off with 340kg of Morfa Dhu material sent to Grinding Solutions Limited.
Preliminary results were received subsequent to the end of the period with
overall recoveries either in-line or better than those received from previous
test work.
* Detailing the planned drilling programme for the Northern Copper Zone, the
first drilling of this high potential area since 1972. Drilling recommenced
in October 2023 and the first hole was completed on 11 December at a depth of
635 metres. Visual logging of the core suggests two zones of sulphide
mineralisation were intersected with the Northern Copper Zone interpreted to
be between 351 – 540 metres and a second zone, potentially the Garth Daniel
Zone, between 560 – 586 metres (all downhole depths). As expected, the
interpreted Northern Copper Zone has varying levels of sulphide accumulation.
The lower zone of sulphide accumulation between 560 – 586 metres
demonstrates areas with very high levels of chalcopyrite. A first batch of
samples will be dispatched to the assay laboratory prior to Christmas with
results expected in Q1 2024.
Progress at the 49.75% owned Grängesberg iron ore project in Sweden included
ongoing discussions with potential development partners and the commencement
of planning for the environmental baseline gap analysis with a locally based
consulting group, as was recommended in the Pre-Feasibility Study Update.
Board of Directors and Management
Following the resignation of Jo Battershill and the results of the annual
general meeting held in late October 2023 the company is actively engaged in
the search for a new Chief Executive Officer and Non-Executive Chairman. We
are very pleased that Jo Battershill has agreed to remain on the board as a
non-executive director.
Financial
The group had no revenue for the period. The loss for the six months to 30
September 2023 was £604,787 (2022 comparative period £468,656) and
expenditure on the mineral properties in the period was £174,748 compared to
£320,887 in the same period in 2022. This reduction was primarily due to a
cessation in Parys Mountain drilling activity.
Net current assets as at 30 September 2023 were £711,635 compared to £86,781
as at 31 March 2023 with the increase being due to equity private placements
in May and July 2023, which raised a total of £1.5 million to fund current
operations.
Summary
We continue to firmly believe that Anglesey Mining is in a good position to
advance its two key assets at Parys Mountain and Grängesberg over the next
year.
At Parys Mountain, drilling of the Northern Copper Zone is expected to
generate strong results leading to the conversion of significant areas of the
resource from the Inferred category through into the higher confidence
Indicated category. From a development study perspective, it is important that
the Northern Copper Zone is upgraded to the Indicated resource category as
this will allow the incorporation of this zone into any potential mineral
reserve. Metallurgical test work will also be required on the Northern Copper
Zone to confirm the +93% recoveries demonstrated by the original test work
completed in 1969 at the Lakefield Plant in Ontario, Canada. As suggested in
the initial review of the Northern Copper Zone in 2022, we believe that the
system could be significantly larger than currently modelled, although this
will require additional drilling to test prospective areas.
At Grängesberg, we continue to explore options to advance the project. This
initially requires finalising some of the recommendations from the preliminary
feasibility study update, including baseline studies for the environmental
impact assessment and updating the mining reserve to include some improvements
to the proposed mine plan. We are also exploring a number of options to
optimise the ownership structure of Grängesberg Iron AB following our
acquisition of an additional 29.8% stake in February 2023.
Outlook
Persistent global uncertainties and difficult financial markets have resulted
in challenging conditions in which to operate. However, we continue to be
encouraged by growing investor interest in Anglesey Mining which was
demonstrated by the successful raising of £1.5 million during the reporting
period. We believe that investors are finally recognising the progress made
over the last two years after a period of relative inactivity.
Over the course of the next year, we look forward to advancing the Parys
Mountain project and to optimising the ownership and potential of the
Grängesberg iron ore project.
In closing, on behalf of the board of directors, I would like to thank our
shareholders for their ongoing support, and to confirm that I remain very
confident that the assets held by Anglesey Mining will deliver significant
value as they continue to be progressed over the next year.
Andrew King
Interim Chairman
19 December 2023
Unaudited condensed consolidated income statement
Notes Unaudited six months ended 30 September 2023 Unaudited six months ended 30 September 2022
All operations are continuing £ £
Revenue - -
Expenses (476,872) (388,972)
Equity-settled employee benefits (24,572) -
Investment income 800 20
Finance costs (104,296) (79,789)
Foreign exchange movement 153 85
Loss before tax (604,787) (468,656)
Taxation 8 - -
Loss for the period 7 (604,787) (468,656)
Loss per share
Basic - pence per share (0.2)p (0.2)p
Diluted - pence per share . (0.2)p (0.2)p
Unaudited condensed consolidated statement of comprehensive income
Loss for the period (604,787) (468,656)
Other comprehensive income
Items that may subsequently be reclassified to profit or loss:
Change in fair value of investment (155,557) (176,428)
Foreign currency translation reserve 8,021 4,967
Total comprehensive loss for the period (752,323) (640,117)
All attributable to equity holders of the company
Unaudited condensed consolidated statement of financial position
Notes 30 September 2023 31 March 2023
£ £
Assets
Non-current assets
Mineral property exploration and evaluation 9 16,346,569 16,171,821
Property, plant and equipment 204,687 204,687
Investments 10 1,877,628 2,033,185
Deposit 124,586 124,586
18,553,470 18,534,279
Current assets
Other receivables 53,354 49,635
Cash and cash equivalents 941,208 247,134
994,562 296,769
Total assets 19,548,032 18,831,048
Liabilities
Current liabilities
Trade and other payables (282,927) (209,988)
(282,927) (209,988)
Net current assets 711,635 86,781
Non-current liabilities
Loans (3,813,430) (4,194,721)
Long term provision (50,000) (50,000)
(3,863,430) (4,244,721)
Total liabilities (4,146,357) (4,454,709)
Net assets 15,401,675 14,376,339
Equity
Share capital 11 9,711,764 8,463,039
Share premium 12,948,103 12,443,741
Currency translation reserve (64,117) (72,138)
Retained losses (7,194,075) (6,458,303)
Total shareholders' funds 15,401,675 14,376,339
All attributable to equity holders of the company
Unaudited condensed consolidated statement of cash flows
Notes Unaudited six months ended 30 September 2023 Unaudited six months ended 30 September 2022
£ £
Operating activities
Loss for the period (604,787) (468,656)
Adjustments for:
Investment income (800) (20)
Finance costs 104,296 79,789
Equity-settled employee benefits 24,572 -
Shares issued in lieu of salary 50,000 -
Foreign exchange movement (153) (85)
(426,872) (388,972)
Movements in working capital
(Increase) in receivables (3,719) (18,375)
Increase/(decrease) in payables 58,774 (131,982)
Net cash used in operating activities (371,817) (539,329)
Investing activities
Investment income 800 -
Mineral property exploration and evaluation (165,062) (355,542)
Net cash used in investing activities (164,262) (355,542)
Financing activities
Issue of share capital 1,380,000 797,951
Loan repayment (150,000) (78,345)
Net cash generated from financing activities 1,230,000 719,606
Net increase/(decrease) in cash and cash equivalents 693,921 (175,265)
Cash and cash equivalents at start of period 247,134 922,177
Foreign exchange movement 153 85
Cash and cash equivalents at end of period 941,208 746,997
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 2023 - audited 8,463,039 12,443,741 (72,138) (6,458,303) 14,376,339
Total comprehensive
loss for the period:
Loss for the period - - - (604,787) (604,787)
Change in fair value of investment - - - (155,557) (155,557)
Exchange difference on - - 8,021 - 8,021
translation of foreign holding
Total comprehensive - - 8,021 (760,344) (752,323)
loss for the period
Shares issued 1,248,725 624,362 - - 1,873,087
Share issue expenses - (120,000) - - (120,000)
Equity at 9,711,764 12,948,103 (64,117) (7,194,075) 15,401,675
30 September 2023 - unaudited
Comparative period
Equity at 1 April 2022 - audited 7,991,541 11,453,789 (84,926) (5,040,074) 14,320,330
Total comprehensive
loss for the period:
Loss for the period - - - (468,656) (468,656)
Change in fair value of investment - - - (176,428) (176,428)
Exchange difference on - - 4,967 - 4,967
translation of foreign holding
Total comprehensive - - 4,967 (645,084) (640,117)
loss for the period
Shares issued 326,050 780,020 - - 1,106,070
Share issue expenses - (80,965) - - (80,965)
Equity at 8,317,591 12,152,844 (79,959) (5,685,158) 14,705,318
30 September 2022 - unaudited
All attributable to equity holders of the company
Notes to the accounts1. 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 2023. 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 UK) and using the going
concern basis. The directors are not aware of any events or circumstances
which would make this inappropriate. 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 2023 which is available
on request from the company or may be viewed at
www.angleseymining.co.uk/accounts.
The financial information contained in this report in respect of the year
ended 31 March 2023 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 by the company’s auditor.
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 2023. There are no new
standards, amendments to standards or interpretations that are expected to
have a material impact on the group's results.
The group has not applied certain new standards, amendments and
interpretations to existing standards that have been issued but are not yet
effective. They are either not expected to have a material effect on the
consolidated financial statements or they are not currently relevant for the
group.
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 2023 remain the same for this
half-yearly period. They 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 2023 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 UK); 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 19 December
2023 and authorised for issue on behalf of the board by Andrew King, interim
chairman and Jo Battershill, chief executive officer.
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 £0.6 million by 406 million - the weighted average number of
ordinary shares in issue during the period. The comparative figures were a
loss to 30 September 2022 of £0.47m divided by 282 million shares. However
where there are losses the effect of outstanding share options is not
dilutive.
7. Business and geographical segments
There are no trading revenues. The cost of all activities charged in the
income statement relates to exploration and evaluation 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 2023
UK Sweden - investment Canada - investment Total
£ £ £ £
Expenses (476,872) - - (476,872)
Equity settled employee benefits (24,572) - - (24,572)
Investment income 800 - - 800
Finance costs (99,231) (5,065) - (104,296)
Exchange rate movements - 153 - 153
Loss for the period (599,875) (4,912) - (604,787)
Unaudited six months ended 30 September 2022
UK Sweden - investment Canada - investment Total
£ £ £ £
Expenses (388,972) - - (388,972)
Equity settled employee benefits - - - -
Investment income 20 - - 20
Finance costs (74,356) (5,433) - (79,789)
Exchange rate movements - 85 - 85
Loss for the period (463,308) (5,348) - (468,656)
Assets and liabilities
` Unaudited 30 September 2023
UK Sweden investment Canada investment Total
£ £ £ £
Non current assets 16,675,842 633,170 1,244,458 18,553,470
Current assets 993,244 1,318 - 994,562
Liabilities (3,821,291) (325,066) - (4,146,357)
Net assets/(liabilities) 13,847,795 309,422 1,244,458 15,401,675
Audited 31 March 2023
UK Sweden investment Canada investment Total
£ £ £ £
Non current assets 16,501,094 633,170 1,400,015 18,534,279
Current assets 295,560 1,209 - 296,769
Liabilities (4,122,208) (332,501) - (4,454,709)
Net assets/(liabilities) 12,674,446 301,878 1,400,015 14,376,339
8. Deferred tax
There is an unrecognised deferred tax asset of £1.6 million (31 March 2023 -
£1.6m) 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 £13.7 million (unchanged from 31
March 2023) 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 £174,748 was incurred (six
months to 30 September 2022 - £320,887). There have been no indicators of
impairment during the period.
10. Investments
Labrador Grangesberg Total
£ £ £
At 1 April 2022 1,914,185 110,157 2,024,342
Net change during the period (514,170) 523,013 8,843
At 31 March 2023 1,400,015 633,170 2,033,185
Net change during the period (155,557) - (155,557)
At 30 September 2023 1,244,458 633,170 1,877,628
Labrador – Canada
The group has an investment in Labrador Iron Mines Holdings Limited, (LIM) a
Canadian company which is carried at fair value through other comprehensive
income. The group’s holding of 19,289,100 shares in LIM (12% of LIM’s
total issued shares) is valued at the closing price traded on the OTC Markets
in the United States. In the directors’ assessment this market is
sufficiently active to give the best measure of fair value, which on 30
September 2023 was 10 US cents per share. As at the 13 December 2023 the share
price was 5.5 US cents per share.
Grängesberg - Sweden
The group has, through its Swedish subsidiary Angmag AB, a 49.75% ownership
interest in Grängesberg Iron AB an unquoted Swedish company (GIAB) which
holds rights over the Grängesberg iron ore deposits.
Under a shareholders’ agreement, Angmag has a reciprocal right of first
refusal over the remaining 50.25% of the equity of GIAB, together with
management direction of the activities of GIAB subject to certain
restrictions. The shareholders' agreement has an initial term of 10 years from
28 May 2014, extendable on a year-to-year basis, unless terminated on one
year's notice.
The directors assessed the fair value of the investment in Grängesberg under
IFRS 9 and consider the investment’s value at 30 September 2023 to be
£633,170.
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 2022 2,480,708 248,070,732 5,510,833 137,770,835 7,991,541
Issued in the period 471,498 47,149,816 - - 471,498
At 31 March 2023 2,952,206 295,220,548 5,510,833 137,770,835 8,463,039
Issued in the period 1,248,725 124,872,469 - - 1,248,725
At 30 September 2023 4,200,931 420,093,017 5,510,833 137,770,835 9,711,764
The deferred shares are non-voting, have no entitlement to dividends and have
negligible rights to return of capital on a winding up.
On 16 May 2023 a placing of 66,666,659 new ordinary shares was made at 1.5
pence per share to several institutions and two of the directors, to raise a
total of £1,000,000. At the same time Juno converted part of its loan, at the
issue price, into 14,589,149 new ordinary shares and a bonus payment of
£50,000 was made in shares, again at the same price.
On 31 July 2023 a placing of 33,333,329 new ordinary shares was made at 1.5
pence per share to several institutions, to raise a total of £500,000. At the
same time Juno converted part of its loan, at the issue price, into 6,950,000
new ordinary shares.
12. Financial instruments
Group Financial assets classified at fair value through other comprehensive income Financial assets measured at amortised cost
30 September 2023 31 March 2023 30 September 2023 31 March 2023
£ £ £ £
Financial assets
Investments 1,877,628 2,033,185 - -
Deposit - - 124,586 124,586
Other receivables - - 53,354 49,635
Cash and cash equivalents - - 941,208 247,134
1,877,628 2,033,185 1,119,148 421,355
Financial liabilities measured at amortised cost
30 September 2023 31 March 2023
£ £
Trade payables (141,485) (94,796)
Other payables (141,442) (115,192)
Loans (3,813,430) (4,194,721)
(4,096,357) (4,404,709)
13. Events after the reporting period
At the AGM held on 27 October 2023 the chairman, John Kearney, was not
re-elected to the board and consequently ceased to be chairman and a director
from that date. Non-executive director Andrew King was appointed Interim
Chairman in his place.
Danesh Varma resigned as financial director on 14 November 2023.
14. Related party transactions Juno Limited
Juno Limited (Juno) which is registered in Bermuda held approximately 20% of
the company’s issued ordinary share capital during the period. The group has
an Investor Agreement with Juno under which Juno agreed to participate in any
future equity financing, at the same price per share and on the same terms as
other arm’s-length participants, to maintain its percentage, with the
subscription price to be satisfied by the conversion and consequent reduction
of debt and the company agreed to pay Juno in cash ten percent of the net
proceeds of such equity financing in further reduction of the debt. In
addition, Juno has certain nomination and reporting rights, including the
right to nominate two directors to the board, so long as Juno holds at least
20% of the company’s outstanding shares and one director so long as Juno
holds at least 10% of the company’s outstanding shares. The family interests
of Danesh Varma have a significant shareholding in Juno.
Following the share issues of May and July 2023, 21,539,148 shares and
10,769,573 warrants over shares were issued to Juno and the consequently debt
due to Juno was reduced by £323,087. In addition, cash repayments of
£150,000 were made in the period. All this was in conformity with the
Investor Agreement.
Since the period end the company has been notified that Juno has sold 100% of
its shareholding in the company.
Grangesberg
John Kearney and Danesh Varma, as nominees of the company, are directors of
Grangesberg Iron AB. Danesh Varma has been associated with the Grängesberg
project since 2007 when he became a director of Mikula Mining Limited, a
company subsequently renamed Eurang Limited, previously involved in the
Grängesberg project. He did not take part in the decision to enter into the
Grängesberg project when this was approved by the board in 2014. The group
has a liability to Eurang Limited, amounting to £325,066 as at 30 September
2023.
There are no other contracts of significance in which any director has or had
during the year a material interest.
Anglesey Mining plc
Directors
Andrew King Interim chairman
Jo Battershill Chief executive
Namrata Verma Non executive
Registered office address - Parys Mountain, Amlwch, Anglesey, LL68 9RE
Phone 01407 831275 Email mail@angleseymining.co.uk
London office Suite S1, The Old Church, 89B Quicks Road, Wimbledon,
London SW19 1EX
Registrars Link Group, 29 Wellington Street, Leeds, LS1 4DL
Share dealing phone 0371 664 0445 Helpline phone 0371 664 0300
Company registered number 01849957
Web site www.angleseymining.co.uk
Shares listed AIM - AYM
CONTACT:
For further information, please contact:
Anglesey Mining plc
Jo Battershill, Chief Executive – Tel: +44 (0)7540 366000
Davy
Nominated Adviser & Joint Corporate Broker
Brian Garrahy / Daragh O’Reilly – Tel: +353 1 679 6363
WH Ireland
Joint Corporate Broker
Katy Mitchell / Harry Ansell – Tel: +44 (0) 207 220 1666
LEI: 213800X8BO8EK2B4HQ71
Anglesey Interim report 2023 (https://mb.cision.com/Main/22377/3896177/2503553.pdf)
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