REG-Anglesey Mining Plc: Half-year Report
18/12/2024 07:15
Anglesey Mining plcHalf yearly report for the six months to 30 September
2024Chairman’s Statement and Management Report
During the half year period, we continued to progress our primary asset at the
Parys Mountain Cu-Zn-Pb-Ag-Au VMS deposit in Anglesey, North Wales.
We reported the assay results from the third and final hole in the Northern
Copper Zone (NCZ) drilling program. NCZ003 intersected both broad zones of
mineralisation and multiple higher-grade zones. All three holes in the program
- NCZ001 NCZ002 and NCZ003 - delivered some exceptional high-grade copper
intersections within broad thicknesses of mineralisation up to 100m wide. The
results continue to support our view that the NCZ provides significant upside
for the Parys Mountain project, over and above the 5 million tonne resource
contribution included within the 2021 Preliminary Economic Assessment.
An important project milestone was reached with the formal submission on 31
July 2024 of the Parys Mountain Mine Environmental Impact Assessment (EIA)
Scoping Report to the North Wales Minerals and Waste Planning Service as part
of a formal EIA Scoping Opinion request. The Planning Service assesses mineral
planning applications on behalf of the Isle of Anglesey County Council and
other County Councils within the North Wales Region.
The Scoping Report forms part of the first stage in the EIA process and comes
after almost two years of extensive studies and work by the Anglesey team on
site. Cumulative expenditure on the EIA process in that timeframe is almost
£300,000. The scoping report sets out the project’s perceived impacts,
specifically identifying any crucial and significant impacts which will be
assessed as part of the final EIA report, the compilation of which will
require further environmental and ecological work. It should be noted that
mining at Parys will be carried out by underground methods; there are no plans
for an open pit or opencast mine extraction works.
Post period end, in October 2024, responses were received to the Scoping
Report from each of the statutory and specialist consultees and subsequently
in December a draft Scoping Opinion has become available. It was pleasing to
note that the responses were broadly in line with our expectations. Formal
feedback from the Planning Service is keenly awaited.
We were pleased to note that zinc has now been added to the UK Critical
Minerals List, Anglesey considers the classification of zinc as a critical
mineral to be a significant positive step for the importance of its Parys
Mountain resource which includes over 200,000 tonnes of contained zinc.
On governance matters, we were delighted to appoint Rob Marsden as our new CEO
and to the board of Anglesey Mining in May 2024 and we welcome the technical,
financial and practical experience he brings to our activities as we seek to
progress Parys and optimise the iron ore investments. We were also pleased to
announce the appointment of Doug Hall as a non-executive director in December
2024 and we look forward to his contributions going forward. In other board
changes we were sorry to accept the resignations of Namrata Verma and Jo
Battershill in September and December, respectively, but wish them both well
in their future endeavours.
Financial
The group had no revenue for the period. The loss for the six months to 30
September 2024 was £311,052 (2023 comparative period £604,787) and
expenditure on the mineral properties in the period was £125,479 compared to
£174,748 in the same period in 2023. This reduction was primarily due to the
reduction in Parys Mountain drilling activity. We also completed two equity
placings in the period, raising approximately £635,000, with the proceeds
going to support ongoing developmental work and for general working capital
purposes.
Net current assets as at 30 September 2024 were £63,149 compared to net
current liabilities of £135,745 at 31 March 2024.
Outlook
Management continues to seek to advance the company’s two key assets. At
Parys Mountain the main activity will be progressing the Planning Application,
guided by the EIA Scoping Opinion when formally received. At Grängesberg,
we will continue to explore options to advance the project as well as devising
proposals to optimise the ownership structure and value of Grängesberg Iron
AB. As always, the company’s activities are predicated upon raising
funding which, notwithstanding the equity issuances completed during the
reporting period, remains extremely challenging in the current market. In this
context, we continue to actively explore initiatives with a view to supporting
the cash position.
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 confident
that the assets held by Anglesey Mining will deliver significant value as they
continue to be progressed over the next year.
Andrew King
Chairman
18 December 2024
Unaudited condensed consolidated income statement
Notes Unaudited six months ended 30 September 2024 Unaudited six months ended 30 September 2023
All operations are continuing £ £
Revenue - -
Expenses (213,575) (476,872)
Equity-settled employee benefits (4,230) (24,572)
Investment income 2,169 800
Finance costs (95,384) (104,296)
Foreign exchange movement (32) 153
Loss before tax (311,052) (604,787)
Taxation 8 - -
Loss for the period 7 (311,052) (604,787)
Loss per share
Basic - pence per share (0.1)p (0.2)p
Diluted - pence per share (0.1)p (0.2)p
Unaudited condensed consolidated statement of comprehensive income
Loss for the period (311,052) (604,787)
Other comprehensive income
Items that may subsequently be reclassified to profit or loss:
Change in fair value of investment 388,683 (155,557)
Foreign currency translation reserve 17,654 8,021
Total comprehensive profit/(loss) for the period 95,285 (752,323)
All attributable to equity holders of the company
Unaudited condensed consolidated statement of financial position
Notes Unaudited 30 September 2024 31 March 2024
£ £
Assets
Non-current assets
Mineral property exploration and evaluation 9 16,976,775 16,851,296
Property, plant and equipment 204,687 204,687
Investments 10 1,793,417 1,404,734
Deposit 128,918 126,752
19,103,797 18,587,469
Current assets
Other receivables 40,871 50,256
Cash and cash equivalents 283,295 219,685
324,166 269,941
Total assets 19,427,963 18,857,410
Liabilities
Current liabilities
Trade and other payables (261,017) (405,686)
(261,017) (405,686)
Net current assets/(liabilities) 63,149 (135,745)
Non-current liabilities
Loans (3,961,930) (3,913,973)
Long term provision (50,000) (50,000)
(4,011,930) (3,963,973)
Total liabilities (4,272,947) (4,369,659)
Net assets 15,155,016 14,487,751
Equity
Share capital 11 10,346,764 9,711,764
Share premium 12,895,853 12,963,103
Currency translation reserve (71,935) (89,589)
Retained losses (8,015,666) (8,097,527)
Total shareholders' funds 15,155,016 14,487,751
All attributable to equity holders of the company
Unaudited condensed consolidated statement of cash flows
Notes Unaudited six months ended 30 September 2024 Unaudited six months ended 30 September 2023
£ £
Operating activities
Loss for the period (311,052) (604,787)
Adjustments for:
Investment income (2,169) (800)
Finance costs 95,384 104,296
Share based payments charge 4,230 24,572
Shares issued in lieu of salary - 50,000
Foreign exchange movement 32 (153)
(213,575) (426,872)
Movements in working capital
Decrease/(increase) in receivables 9,385 (3,719)
Increase in payables 4,041 58,774
Net cash used in operating activities (200,149) (371,817)
Investing activities
Investment income 3 800
Mineral property exploration and evaluation (274,755) (165,062)
Investment - -
Net cash used in investing activities (274,752) (164,262)
Financing activities
Issue of share capital 567,750 1,380,000
Loan repayment (29,207) (150,000)
Net cash generated from financing activities 538,543 1,230,000
Net increase in cash and cash equivalents 63,642 693,921
Cash and cash equivalents at start of period 219,685 247,134
Foreign exchange movement (32) 153
Cash and cash equivalents at end of period 283,295 941,208
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 2024 - audited 9,711,764 12,963,103 (89,589) (8,097,527) 14,487,751
Total comprehensive
loss for the period:
Loss for the period - - - (311,052) (311,052)
Change in fair value of investment - - - 388,683 388,683
Exchange difference on - - 17,654 - 17,654
translation of foreign holding
Exchange difference on translation of foreign holdings - - - -
Total comprehensive - - 17,654 77,631 95,285
loss for the period
Shares issued 635,000 - - - 635,000
Share issue expenses - (67,250) - - (67,250)
Equity-settled employee benefits - - - 4,230 4,230
Equity at 10,346,764 12,895,853 (71,935) (8,015,666) 15,155,016
30 September 2024 - unaudited
Comparative period
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) (7,218,647) 15,377,103
30 September 2023 - 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 2024. 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 2024 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 2024 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 2024. 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 2024 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 2024 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
2024 and authorised for issue on behalf of the board by Andrew King, interim
chairman and Rob Marsden, 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 £0.3 million by 442 million - the weighted average number of
ordinary shares in issue during the period. The comparative figures were a
loss to 30 September 2023 of £0.6m divided by 406 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 2024
UK Sweden - investment Canada - investment Total
£ £ £ £
Expenses (187,450) (26,125) - (213,575)
Equity settled employee benefits (4,230) - - (4,230)
Share based payments - -
Investment income 2,169 - - 2,169
Finance costs (88,642) (6,742) - (95,384)
Exchange rate movements - (32) - (32)
Loss for the period (278,153) (32,899) - (311,052)
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)
Assets and liabilities
` Unaudited 30 September 2024
UK Sweden investment Canada investment Total
£ £ £ £
Non current assets 17,310,380 633,170 1,160,247 19,103,797
Current assets 323,035 1,131 - 324,166
Liabilities (3,922,929) (350,018) - (4,272,947)
Net assets 13,710,486 284,283 1,160,247 15,155,016
Audited 31 March 2024
UK Sweden investment Canada investment Total
£ £ £ £
Non current assets 17,182,735 633,170 771,564 18,587,469
Current assets 268,778 1,163 - 269,941
Liabilities (4,005,989) (363,670) - (4,369,659)
Net assets 13,445,524 270,663 771,564 14,487,751
8. Deferred tax
There is an unrecognised deferred tax asset of £1.6 million (31 March 2024 -
£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, of £14.4 million (unchanged from 31 March
2024) 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 activities were limited and in particular no
drilling was taking place so the expenditure of £125,479 was significantly
less than in the six months to 30 September 2023 when expenditures totalled
£679,475. There have been no indicators of impairment during the period.
10. Investments
Labrador Grangesberg Total
£ £ £
At 1 April 2023 1,400,015 633,170 2,033,185
Net change during the period (628,451) - (628,451)
At 31 March 2023 771,564 633,170 1,404,734
Net change during the period 388,683 - 388,683
At Unaudited 30 September 2024 1,160,247 633,170 1,793,417
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 2024 was 8 US cents per share (2023 – 10 US cents). As at 29
November 2024 the share price was 6 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 2024 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 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 31 March 2024 4,200,931 420,093,017 5,510,833 137,770,835 9,711,764
Issued in the period 635,000 63,500,000 - - 635,000
At Unaudited 30 September 2024 4,835,931 483,593,017 5,510,833 137,770,835 10,346,764
The deferred shares are non-voting, have no entitlement to dividends and have
negligible rights to return of capital on a winding up.
On 28 June 2024 a placing of 415,000,000 new ordinary shares was made at 1.0
pence per share to several institutions, including two of the directors and
Energold Minerals Inc. a company controlled by John Kearney the former
chairman of the company, to raise a total of £415,000.
On 25 September 2024 a placing of 220,000,000 new ordinary shares was made at
1.0 pence per share to several institutions, to raise a total of £220,000.
12. Financial instruments
Group Financial assets classified at fair value through other comprehensive income Financial assets measured at amortised cost
Unaudited 30 September 2024 31 March 2024 Unaudited 30 September 2024 31 March 2024
£ £ £ £
Financial assets
Investments 1,793,417 1,404,734 - -
Deposit - - 128,918 126,752
Other receivables - - 40,871 50,256
Cash and cash equivalents - - 283,295 219,685
1,793,417 1,404,734 453,084 396,693
Financial liabilities measured at amortised cost
Unaudited 30 September 2024 31 March 2024
£ £
Trade payables (111,723) (293,040)
Other payables (149,294) (112,646)
Loans (3,961,930) (3,913,973)
(4,222,947) (4,319,659)
13. Events since the period end
On 11 November 2024 a placing of 1,229,238 new ordinary shares was made at 1.0
pence per share to two suppliers of services to the company to discharge
liabilities of £12,292.
On 5 December 2024 we were pleased to announce the appointment of Mr. Robert
Douglas Hall as a non-executive director of the company with immediate effect
and also announced Jo Battershill’s decision to step down as a non-executive
director.
Anglesey Mining plc
Directors
Andrew King Chairman
Rob Marsden Chief executive
Douglas Hall Non executive
Registered office address - Parys Mountain, Amlwch, Anglesey, LL68 9RE
Phone 01407 831275 Email mail@angleseymining.co.uk
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
Rob Marsden, Chief Executive – Tel: +44 (0)7531 475111
Davy
Nominated Adviser & Joint Corporate Broker
Brian Garrahy / Daragh O’Reilly – Tel: +353 1 679 6363
Zeus
Joint Corporate Broker
Katy Mitchell / Harry Ansell – Tel: +44 (0) 207 220 1666
LEI: 213800X8BO8EK2B4HQ71
IR24 (https://mb.cision.com/Main/22377/4083780/3178939.pdf)
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