REG - Arc Minerals Limited - Interim Results
25/09/2024 07:00
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RNS Number : 4882F Arc Minerals Limited 25 September 2024
25 September 2024, 06:00 UTC
Arc Minerals Ltd
('Arc Minerals' or the 'Company')
Interim Results
Arc Minerals announces its unaudited financial results for the six months
ended 30 June 2024 (the "Interim Results") which has been made available on
the Company's website at
http://www.arcminerals.com/investors/document-library/default.aspx
(http://www.arcminerals.com/investors/document-library/default.aspx) .
Market Abuse Regulation (MAR) Disclosure
This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law
by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is
disclosed in accordance with the Company's obligations under Article 17 of
MAR.
Forward-looking Statements
This news release contains forward-looking statements that are based on the
Company's current expectations and estimates. Forward-looking statements are
frequently characterised by words such as "plan", "expect", "project",
"intend", "believe", "anticipate", "estimate", "suggest", "indicate" and other
similar words or statements that certain events or conditions "may" or "will"
occur. Such forward-looking statements involve known and unknown risks,
uncertainties and other factors that could cause actual events or results to
differ materially from estimated or anticipated events or results implied or
expressed in such forward-looking statements. Such factors include, among
others: the actual results of current exploration activities; conclusions of
economic evaluations; changes in project parameters as plans continue to be
refined; possible variations in ore grade or recovery rates; accidents, labour
disputes and other risks of the mining industry; delays in obtaining
governmental approvals or financing; and fluctuations in metal prices. There
may be other factors that cause actions, events or results not to be as
anticipated, estimated or intended. Any forward-looking statement speaks only
as of the date on which it is made and, except as may be required by
applicable securities laws, the Company disclaims any intent or obligation to
update any forward-looking statement, whether as a result of new information,
future events or results or otherwise. Forward-looking statements are not
guarantees of future performance and accordingly undue reliance should not be
put on such statements due to the inherent uncertainty therein.
**ENDS**
Contacts
Arc Minerals
Ltd
c/o Benchmark Communications
Nick von Schirnding (Executive Chairman)
Zeus Capital Limited (Nominated Adviser & Joint Broker) Tel: +44 (0) 203 829 5000
Katy Mitchell/Harry Ansell
Shard Capital Partners LLP (Joint Broker) Tel: +44 (0) 20 7186 9952
Damon Heath
Benchmark Communications (Investor Relations) Tel: +44 (0) 7841 67 3210
Richard Kauffer
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the period ended 30 June 2024
Six Months to Six Months to
30 June
30 June
2023
2024
(Unaudited) (Unaudited)
Notes £ 000's £ 000's
Administrative expenses (514) (2,201)
Operating loss (514) (2,201)
Share of loss from associate (24) -
Non-operating Loss (24) -
Loss from continuing operations (538) (2,201)
Income tax expense - -
Loss for the period 3 (538) (2,201)
Other comprehensive income / (loss)
Items that may be reclassified subsequently to profit or loss:
Unrealised losses - (49)
Effect of currency translation 4 53
Other comprehensive income for the period, net of tax 4 4
Total comprehensive loss for the period (534) (2,197)
Income / (Loss) attributable to:
Equity holders of the parent (631) (2,196)
Non-controlling interest 93 (5)
(538) (2,201)
Total comprehensive income / (loss) attributable to:
Equity holders of the parent (628) (2,206)
Non-controlling interest 94 (9)
(534) (2,197)
Loss per share attributable to the owners of the parent during the period
(expressed in pence per share)
- Basic 3 (0.04) (0.18)
The notes are an integral part of these consolidated financial statements.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
as at 30 June 2024
As at As at
30 June
31 December
2024
2023
(Unaudited) (Audited)
Notes £ 000's £ 000's
ASSETS
Non-current assets
Intangible assets 4 1,836 1,699
Investment in Associate 2,434 2,458
Long-term receivable 5 6,811 6,531
Total non-current assets 11,081 10,688
Current assets
Trade and other receivables 6 1,924 1,859
Short term investments 7 - 68
Cash and cash equivalents 2,403 281
Total current assets 4,327 2,208
TOTAL ASSETS 15,408 12,896
LIABILITIES
Current liabilities
Trade and other payables 8 (1,705) (2,244)
Total current liabilities (1,705) (2,244)
Non-current liabilities
Long term payables 9 (104) (105)
Total non-current liabilities (104) (105)
TOTAL LIABILITIES (1,809) (2,349)
NET ASSETS 13,599 10,547
EQUITY
Share capital 10 - -
Share premium 68,063 64,464
Share based payments reserve 84 126
Warrant reserve 84 84
Foreign exchange reserve (114) (61)
Retained earnings (54,612) (54,063)
Equity attributable to equity holders of the parent 13,505 10,550
Non-controlling interest 94 (3)
TOTAL EQUITY 13,599 10,547
The notes are an integral part of these consolidated financial statements.
CONSOLIDATED STATEMENT OF CASH FLOWS
for the period ended 30 June 2024
As at As at
30 June
30 June
2024
2023
(Unaudited) (Unaudited)
Notes £ 000's £ 000's
Cash flows from operating activities
Loss for the period 3 (538) (2,201)
Depreciation - 5
Currency losses / (gains) (54) 39
Fair value losses / (gains) 7 (28) 1,469
Share of loss of associate 24 -
Non-cash revaluation loss (251) -
Operating loss before changes in working capital (847) (688)
Increase in trade and other receivables (40) (13)
Increase / (Decrease) in trade and other payables (548) 194
Net cash used in operating activities (1,435) (507)
Cash flows used in investing activities
Additions to intangible assets 4 (137) (88)
Proceeds from disposal of short-term investments 7 96 -
Net cash used in investing activities (41) (88)
Cash flows from financing activities
Proceeds from issue of ordinary shares net of share issue cost 10 4,005 28
Repurchase of shares 10 (406) -
Long term payables 9 (1) 11
Net cash generated from financing activities 3,598 39
Net increase/(decrease) in cash and cash equivalents 2,122 (556)
Cash and cash equivalents at beginning of period 281 616
Cash and cash equivalents at end of period 2,403 60
The notes are an integral part of these consolidated financial statements.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the period ended 30 June 2024
Share Share premium Foreign exchange reserve Share based payment reserve Warrant Retained earnings Total Non-controlling Total
capital
interest
equity
Reserve
£ 000's £ 000's £ 000's £ 000's £ 000's £ 000's £ 000's £ 000's £ 000's
As at 1 January 2023 - 64,272 1,045 283 84 (59,196) 6,488 (643) 5,845
Loss for the period - - - - - (2,196) (2,196) (5) (2,201)
Items that may be reclassified subsequently to profit or loss:
Currency translation differences - - (10) - - - (10) 14 4
Total comprehensive loss for the period - - (10) - - (2,196) (2,206) 9 (2,197)
Share capital issued net of share issue costs - 28 - - - - 28 - 28
Effect of foreign exchange on the opening balance - - (169) - - 30 (139) - (139)
Total transactions with owners, recognised directly in equity - 28 (169) - - 30 (111) - (111)
As at 30 June 2023 - 64,300 866 283 84 (61 362) 4,171 (634) 3,537
As at 1 January 2024 - 64,464 (78) 126 84 (54,046) 10,550 (3) 10,547
Loss for the period - - - - - (631) (631) 93 (538)
Items that may be reclassified subsequently to profit or loss:
Currency translation differences - - 3 - - - 3 1 4
Total comprehensive loss for the period - - 3 - - (631) (628) 94 (534)
Share capital issued net of share issue costs - 4,005 - - - - 4,005 - 4,005
Cancellation of repurchased shares (note 10) - (406) - - - - (406) - (406)
Warrants and options expired - - - (42) - 42 - - -
Effect of foreign exchange on the opening balance - - (39) - - 23 (16) 3 (13)
Total transactions with owners, recognised directly in equity - 3,599 (39) (42) - 65 3,583 3 3,586
As at 30 June 2024 - 68,063 (114) 84 84 (54,612) 13,505 94 13,599
The notes are an integral part of these consolidated financial statements.
NOTES TO THE INTERIM FINANCIAL STATEMENTS
For the period ended 30 June 2024
1. Basis of preparation
The condensed consolidated interim financial statements have been prepared
under the historical cost convention and on a going concern basis and in
accordance with International Financial Reporting Standards and IFRIC
interpretations adopted for use in the European Union ("IFRS") and those parts
of the BVI Business Companies Act applicable to companies reporting under
IFRS.
The condensed consolidated interim financial statements contained in this
document do not constitute statutory accounts. In the opinion of the
directors, the condensed consolidated interim financial statements for this
period fairly presents the financial position, result of operations and cash
flows for this period.
The Board of Directors approved this Interim Financial Report on 24 September
2024.
Statement of compliance
The condensed consolidated interim financial statements have been prepared in
accordance with the requirements of the AIM Rules for Companies. As permitted,
the Company has chosen not to adopt IAS 34 "Interim Financial Statements" in
preparing these interim condensed consolidated interim financial statements.
The condensed interim financial statements should be read in conjunction with
the annual financial statements for the year ended 31 December 2023, which
have been prepared in accordance with IFRS as adopted by the European Union.
Accounting policies
The condensed consolidated interim financial statements for the period ended
30 June 2024 have not been audited or reviewed in accordance with the
International Standard on Review Engagements 2410 issued by the Auditing
Practices Board. The figures were prepared using applicable accounting
policies and practices consistent with those adopted in the statutory annual
financial statements for the year ended 31 December 2023.
Going concern
The Directors have reviewed a forecast prepared by the executive and have a
reasonable expectation that the Group has sufficient funds to continue in
operation and satisfy liabilities for the foreseeable future. The Directors
therefore consider it appropriate for the Company to continue to adopt the
going concern basis in preparing the Annual Report and Financial Statements.
Fair value measurement
Fair value is the price that would be received to sell an asset or paid to
transfer a liability in an orderly transaction between market participants at
the measurement date. The fair value measurement is based on the presumption
that the transaction to sell the asset or transfer the liability takes place
either in the principal market for the asset or liability, or in the absence
of a principal market, in the most advantageous market for the asset or
liability.
The fair value of an asset or a liability is measured using the assumptions
that market participants would use when pricing the asset or liability,
assuming that market participants act in their economic best interest. A fair
value measurement of a non-financial asset takes into account a market
participant's ability to generate economic benefits by using the asset in its
highest and best use or by selling it to another market participant that would
use the asset in its highest and best use.
The Group uses valuation techniques that are appropriate in the circumstances
and for which sufficient data are available to measure fair value, maximising
the use of relevant observable inputs and minimising the use of unobservable
inputs. All assets and liabilities for which fair value is measured or
disclosed in the financial statements are categorised within the fair value
hierarchy, described as follows, based on the lowest level input that is
significant to the fair value measurement as a whole:
• Level 1 - Quoted (unadjusted) market prices in active markets for
identical assets or liabilities.
• Level 2 - Valuation techniques for which the lowest level input that is
significant to the fair value measurement is directly or indirectly
observable.
• Level 3 - Valuation techniques for which the lowest level input that is
significant to the fair value measurement is unobservable.
2. Financial Risk Management
Risks and uncertainties
The Board continually assesses and monitors the key risks of the business. The
key risks that could affect the Group's medium-term performance and the
factors that mitigate those risks have not substantially changed from those
set out in the Group's December 2023 Annual Report and Financial Statements, a
copy of which is available from the Group's website: www.arcminerals.com. The
key financial risks are market risk, currency risk, and liquidity.
3. Loss per share
Six Months to Six Months to
30 June 2024
30 June 2023
(Unaudited) (Unaudited)
Notes £ 000's £ 000's
Loss for the period (538) (2,201)
Weighted average number of ordinary shares used in calculating basic loss per 1,348,712 1,225,745
share (000's)
Basic loss per share (expressed in pence) (0.04) (0.18)
As the inclusion of outstanding warrants and options would result in a
decrease in the earnings per share, they are considered to be anti-dilutive
and, as such, a diluted loss per share is not included.
4. Intangible Assets
Alvis-Crest Foreland Total
Prospecting & Exploration rights Deferred Exploration Costs
£ 000's £ 000's £ 000's
As at 1 January 2024 1,699 - 1,699
Additions 127 10 137
Foreign exchange - - -
As at 30 June 2024 1,826 10 1,836
As at 31 December 2023 1,699 - 1,699
5. Long-term receivables
Group Group
30 June 31 Dec
2024 2023
£ 000's £ 000's
Receivable - Anglo JV (USD 8.61M) 6,811 6,531
Total 6,811 6,531
6. Trade and other receivables
Group Group
30 June 31 Dec
2024 2022
£ 000's £ 000's
Receivable - Anglo JV (USD 974k) 770 744
Receivable - Casa Sale (USD 1.25M) 988 982
Other Receivables 166 121
Prepayments - 12
Total 1,924 1,859
7. Short-term Investments Held at Fair Value Through Profit and Loss
The Group's investments held at fair value through profit and loss consist of
investments publicly traded on the London Stock Exchange and the
Over-The-Counter (OTC) market. These investments are valued at the mid-price
as at period end.
Level 1((i)) Level 2((i)) Level 3((i)) Total
£ 000's £ 000's £ 000's £ 000's
At 1 January 2024 68 - - 68
Additions - - - -
Fair value and gain on disposal 28 - - 28
Disposals (96) - - 68
Foreign exchange - - - -
At 30 June 2024 - - - -
Level 1((i)) Level 2((i)) Level 3((i)) Total
£ 000's £ 000's £ 000's £ 000's
Gains on short-term investments held at fair value through profit and loss
Fair value gain and disposal on investments 28 - - 28
At 30 June 2024 28 - - 28
( )
((i)) See note 1 (accounting policy).
Level 1((i)) Level 2((i)) Level 3((i)) Total
£ 000's £ 000's £ 000's £ 000's
At 1 January 2023 1,738 - - 1,738
Additions - - - -
Fair value loss (1,509) - - (1,509)
Impairment of TMNA shares (164) - - (164)
Foreign exchange 3 - - 3
At 31 December 2023 68 - - 68
Level 1 Level 2 Level 3 Total
£ 000's £ 000's £ 000's £ 000's
Losses on short-term investments held at fair value through profit and loss
Fair value loss on investments (1,509) - - (1,509)
Realised loss on impairment of investments (164) - - (164)
At 31 December 2023 (1,673) - - (1,673)
((i)) See note 1 (accounting policy).
8. Trade and Other Payables
Group Group
30 June 2024 31 December
2023
Trade and Other Payables £ 000's £ 000's
Surrendered share options payable 1,181 1,181
Minority shareholder loans - 47
Trade and other payables 524 1,016
1,705 2,244
Surrendered Share Options Payable
The surrendered share options payable is in relation to the surrendered share
options as announced on 16 March 2021.
Minority shareholder loans
The minority shareholder loans represent the loan from the 33% minority
shareholder to Unico Minerals Limited. The Company has also provided a loan to
this company on similar terms which had a balance on the reporting date of
c.£1.45 million.
9. Long Term Payables
Group Group
30 June 2024 31 December 2023
Long term payables £ 000's £ 000's
Minority shareholder loan 104 105
104 105
The minority shareholder loan consists of a loan from the 25% minority
shareholder of Alvis-Crest (Pty) Ltd. The Company has also provided a loan to
Alvis Crest on similar terms which had a balance on the reporting date of
c.£964k.
10. Share Capital
The authorised share capital of the Company and the called up and fully paid
amounts at 30 June 2024 were as follows:
A) Authorised £ 000's £ 000's
Unlimited ordinary shares of no par value - -
B) Called up, allotted, issued and fully paid Number Nominal Price Gross
of shares
value
per Consideration
value
share
GBP'000
(pence)
As at 1 January 2024 1,232,318,465 - - -
Additions:
23 Feb 2024 - issued to creditors in lieu of payment 746,664 - 2.33 17
25 Mar 2024 - placing and subscription 229,777,770 - 1.80 4,136
25 Mar 2024 - advisor shares in relation to placing 5,711,110 - 1.80 103
8 Apr 2024 - cancellation of repurchased shares as first announced on 26 Mar (22,539,746) - 1.80 (406)
2024
As at 30 June 2024 1,446,014,263 - -
11. Events after the reporting date
There were no post balance sheet events in addition to those disclosed in the
31 December 2023 Annual Report.
12. Other Matters
The condensed consolidated interim financial statements set out above do not
constitute the Group's statutory accounts for the period ended 30 June 2024 or
for earlier periods but are derived from those accounts where applicable.
A copy of this interim statement is available on the Company's website:
www.arcminerals.com.
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