Final Results for the Year Ended 31 December 2024
25/06/2025 07:00
RNS Number : 2467O
Arkle Resources PLC
25 June 2025
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.
25 June 2025
Arkle Resources PLC
("Arkle", the "Group" or the "Company")
Final Results for the Year Ended 31 December 2024
Arkle Resources PLC (LON: ARK), the Gold, Lithium and Zinc exploration and development company, is pleased to announce its audited results for the year ending 31 December 2024.
CHAIRMAN'S STATEMENT
We are explorers for zinc, gold and lithium. We work in Ireland and in Botswana. We have been very active on our licences in Botswana while our exploration partners in Irish zinc drilled during 2024 and recently announced some very positive findings.
In Botswana our exploration for lithium discovered brines over the entire 837sq km of our two licences. Samples analysed in Australia found lithium in all 20 samples though grades were low. Of potentially far greater significance are good grades of magnesium which until recently complicated lithium recovery. New technology, Direct Lithium Extraction (DLE), is showing great promise. It uses membranes to extract the magnesium prior to extracting the lithium. Should further exploration across the licences prove up the magnesium and lithium grades there is the possibility of a commercial discovery. Significant drilling is required but given the shallow depth, holes are fast and cheap.
In Ireland, the focus has been on our 5 licence Stonepark block which already contains 5.1 million tons of 11.3% combined lead and zinc. We are in a joint venture on this block with Group Eleven, a Toronto listed base metal explorer. The partnership is 77.64% Group Eleven and 22.36% Arkle. Group Eleven is the operator. Group Eleven holds significant licences to the South and Southwest of the Arkle block. Drilling on these licences has found significant discoveries of zinc and lead at Ballywire and Carrickittle. The exploration by Group Eleven on this ground has led them to postulate the existence of a mineral trend which they call the Pallas Green Corridor stretching Northeast from Ballywire through Carrickittle onto Stonepark ground touching the Stonepark discovery and into the 45 million ton Pallas Green base metal discovery.
In testing this corridor Group Eleven drilled four holes in 2024, three on Stonepark ground and one on their 100% owned Carrickittle ground. The results of this drilling while producing little mineralisation identified what they are calling the "Kilteely Prospect". This area, the chief executive of the Group Eleven has stated to be the best drill target in Ireland. Further drilling will be undertaken.
Arkle also holds hard rock lithium bearing ground in Ireland, four licences in the Aughrim area of Co. Wicklow. Sampling has discovered lithium traces in spodumene.
The Company also holds three hard rock lithium licences in Zimbabwe. Sampling has found lithium traces. There are ongoing discussions to bring in a local partner to do further work.
Arkle has held gold licences in Ireland since it was founded. Most work has been done in the Avoca area of Wicklow. Despite some tantalising results we have been unable to prove continuity which is necessary to reach commerciality. After a serious review of potential, the four licences were not renewed.
We maintain our gold licence in the Meeneragh area of Donegal. Drilling results over the years have shown good potential. The ground has strong similarities to that of the large Tyrone gold despite some 60km away in Tryron.
The Markets
We are interested in zinc, lead, gold, lithium and now magnesium. Demand for zinc and lead has driven prices to high levels currently zinc is in excess of $2,600 a tonne, while lead is almost $2,000 a tonne.
Zinc is used in a wide variety of industrial uses and demand is growing in emerging economies. Lead has seen a renaissance with the growth of Electric Vehicles. While demand grows few new mines have come on stream. Exploration has declined substantially so no discoveries mean no new mines, so as existing mines are worked out prices must rise.
Gold at $3,300 / oz is at a near all time high. There are good and bad points in this. The bad is that gold is a store of value so in very uncertain times gold increases in price. So it is today. The good point is that gold exploration is encouraged by this price. But while gold producers have risen in price gold explorers have not benefited as much.
Lithium prices appear to defy the rules of economics. Lithium demand is expected to explode in the coming decades due to the growth in Electric Vehicles. There is a scarcity of supply yet the price is at a four-year low. The exploration is not that complicated. China controls 90% of the lithium oxide market - the material required for batteries. They set the price. By keeping the price low they deter interest in the processing end of the cycle. At the extractive end there are two ways to get lithium - hard rock or brines. Most hard rock mining is from pegmatites containing spodumene which have lithium. Generally, lithium grades in hard rock are low so extracting cost per pound of lithium are high. The Arkle hard rock lithium licences in Ireland and Zimbabwe are like this. In recent years major successful hard rock mine development have been in Australia.
The future appears to be in lithium brines. This is where lakes evaporate leaving a hard salty crust and just below the crust mushy liquids or brines which may contain lithium. Most lithium brine commercial developments have taken place in large salt pans in Chile and Argentina. Over half of the estimated world resources of lithium are contained in the massive salt pans of Bolivia. Politics, remoteness and technical issues have delayed any significant development of these pans. In particular, levels of magnesium in the brines adversely affected lithium recovery.
Arkle shareholders and directors have significant knowledge of this area. This knowledge led Arkle to acquire 837sq km of ground in the Makgadikgadi Salt Pans in Botswana. Very little previous work has been done in the area. We surveyed and drilled. We found lithium but also significant grades of magnesium. Historically this would have rendered the area non-commercial. But a new technology currently being introduced for lithium has the beneficial side effect of allowing magnesium recovery. Economics look very different if magnesium and lithium can be extracted from the brines. Magnesium is expected to grow at over 5% annually. It is used in aerospace and adds strength to aluminium and titanium. Magnesium alloys are widely used in missiles and other aerospace segments. In common with lithium, magnesium prices have been very volatile in recent years and is currently around $2,000 a tonne.
Extracting magnesium from brines using Direct Lithium Extraction (DLE) technology projects an 80% plus recovery. The brines go through a process which first recovers up to 90% of contained magnesium then the brines go through a lithium recovery process.
Future
Zinc, lithium and magnesium are minerals for the future. Zinc and lithium are "critical minerals". Critical minerals are those which the EU and US deem essential to future technology developments. The EU has promised huge sums for mining and infrastructure development. But nothing for exploration. Without exploration there can be no mines. Yet, exploration expenditure is falling worldwide.
The AIM market in London, the source of most exploration funds has in recent years, like other junior markets struggled to attract new investors. This affects share prices, we believe that our intrinsic value per share is above the depressed market price.
We are fortunate that our Stonepark joint venture gives us the option of diluting our stake or participating. A low share price favours dilution which we used in the recent exploration programme. Any new funds raised will be invested in a planned drilling programme for lithium in Botswana. The initial good results need to be reinforced by a shallow drilling programme to recover 20 tonnes of brines for shipment to India where this will be processed to recover magnesium and lithium.
We are actively seeking ways to diversify our shareholder base and to attract new investors. We continue to evaluate a stream of proposals.
John Teeling
Chairman
25 June 2025
Enquiries:
| Arkle Resources PLC | |
| John Teeling, Chairman | +353 (0) 1 833 2833 |
| Jim Finn, Finance Director | +353 (0) 1 833 2833 |
| SP Angel Corporate Finance LLP Nominated Adviser & Joint Broker | |
| Matthew Johnson | +44 (0) 203 470 0470 |
| Adam Cowl | |
| First Equity Limited | |
| Joint Broker | |
| Jason Robertson | +44 (0) 207 374 2212 |
| BlytheRay | +44 (0) 207 138 3204 |
| Megan Ray | |
| Teneo | |
| Luke Hogg | +353 (0) 1 661 4055 |
| Mollie McLernon | |
| Molly Mooney |
| 2024 € | 2023 € | |
| Administrative expenses | (271,223) | (276,759) |
| Impairment of exploration and evaluation assets | (1,769,948) | - |
| Loss from operations | (2,041,171) | (276,759) |
| Profit/(loss) due to fair value volatility of warrants | 39,421 | (20,262) |
| Loss before tax | (2,001,750) | (297,021) |
| Tax expense | - | - |
| Loss for the year | (2,001,750) | (297,021) |
| Total comprehensive income | (2,001,750) | (297,021) |
| Earnings per share attributable to the ordinary equity holders of the parent | ||
| cents | cents | |
| Profit/(Loss) per share - Basic & Diluted | (0.43) | (0.07) |
| 2024 € | 2023 € | |
| Assets | ||
| Non-current assets | ||
| Intangible assets | 2,570,085 | 4,089,667 |
| Current assets | ||
| Other receivables | 357 | 788 |
| Cash and cash equivalents | 27,303 | 91,082 |
| 27,660 | 91,870 | |
| Total assets | 2,597,745 | 4,181,537 |
| Liabilities | ||
| Current liabilities | ||
| Trade and other liabilities | (478,464) | (340,026) |
| Warrants | (136,532) | (175,952) |
| Total liabilities | (614,996) | (515,978) |
| Net assets | 1,982,749 | 3,665,559 |
| Equity | ||
| Called-up Share capital - Deferred | 992,337 | 992,337 |
| Called-up Share capital - Ordinary | 1,412,027 | 1,142,027 |
| Share premium reserve | 7,064,059 | 7,015,119 |
| Share based payments reserve | 156,494 | 156,494 |
| Retained deficit | (7,642,168) | (5,640,418) |
| Total Equity | 1,982,749 | 3,665,559 |
| Called up Share Capital Deferred | Called up Share Capital Ordinary | Share Premium | Share Based Payment Reserve | Retained Deficit | Total | |
| € | € | € | € | € | € | |
| At 1 January 2023 | 992,337 | 988,456 | 6,922,562 | 156,494 | (5,343,397) | 3,716,452 |
| Shares issued | - | 153,571 | 92,557 | - | - | 246,128 |
| Loss for the year | - | - | - | - | (299,214) | (299,214) |
| At 31 December 2023 | 992,337 | 1,142,027 | 7,015,119 | 156,494 | (5,640,418) | 3,665,559 |
| Shares issued | - | 270,000 | 48,940 | - | - | 318,940 |
| Loss for the year | (2,001,750) | (2,001,750) | ||||
| At 31 December 2024 | 992,337 | 1,412,027 | 7,064,059 | 156,494 | (7,642,168) | 1,982,749 |
| 2024 € | 2023 € | |
| Cash flows from operating activities | ||
| Loss for the year | (2,001,750) | (297,021) |
| Adjustments for | ||
| Impairment | 1,769,948 | - |
| Fair Value movement of warrants | (39,421) | 20,262 |
| Foreign exchange | (1,071) | (2,753) |
| (272,294) | (279,512) | |
| Movements in working capital: | ||
| Decrease in trade and other receivables | 431 | 6,140 |
| Increase in trade and other payables | 138,439 | 14,227 |
| Net cash used in operating activities | (133,424) | (259,145) |
| Cash flows from investing activities | ||
| Payments for exploration and evaluation | (250,366) | (98,644) |
| Net cash used in investing activities | (250,366) | (98,644) |
| Cash flows from financing activities | ||
| Proceeds from issue of equity shares | 318,940 | 246,128 |
| Share issue expenses | - | - |
| Net cash generated from financing activities | 318,940 | 246,128 |
| Net cash decrease in cash and cash equivalents | (64,850) | (111,661) |
| Cash and cash equivalents at the beginning of year | 91,082 | 199,990 |
| Exchange gains on cash and cash equivalents | 1,071 | 2,753 |
| Cash and cash equivalents at the end of the year | 27,303 | 91,082 |
| 2024 € | 2023 € | |
| Numerator | ||
| For basic and diluted EPS Loss after taxation | (2,001,750) | (297,021) |
| Denominator | No. | No. |
| For basic and diluted EPS | 470,126,065 | 402,955,811 |
| Basic EPS | (0.43c) | (0.07c) |
| Diluted EPS | (0.43c) | (0.07c) |
| Basic and diluted loss per share are the same as the effect of the outstanding share options and warrants is anti-dilutive. | ||
| Group | Group | |
| 2024 € | 2023 € | |
| Exploration and evaluation assets: | ||
| Cost: | ||
| At 1 January | 4,089,667 | 3,991,023 |
| Additions | 250,366 | 98,644 |
| Impairment | (1,769,948) | - |
| At 31 December | 2,570,085 | 4,089,667 |
| Carrying amount: | ||
| At 31 December | 2,570,085 | 4,089,667 |
| Group | Group | |
| 2024 € | 2023 € | |
| Limerick | 1,802,378 | 1,705,480 |
| Rest of Ireland | 671,731 | 2,355,172 |
| Zimbabwe | 32,058 | 29,015 |
| Botswana | 63,918 | - |
| 2,570,085 | 4,089,667 |
| Group | Group | |
| 2024 € | 2023 € | |
| Current assets: | ||
| Trade and other payables | 155,964 | 63,526 |
| Accruals | 322,500 | 276,500 |
| 478,464 | 340,026 |
| 2024 € | 2023 € | |
| Authorised | ||
| 2,000,000,000 Ordinary shares of €0.0025 each | 5,000,000 | 2,500,000 |
| 500,000,000 Deferred shares of €0.0075 each | 3,750,000 | 3,750,000 |
| 8,750,000 | 6,250,000 |
| Deferred Shares - nominal value of €0.0075 | |||
| Number | Share Capital € | Share Premium € | |
| At 1 January 2023 and 2024 | 132,311,591 | 992,337 | - |
| At 31 December 2023 and 2024 | 132,311,591 | 992,337 | - |
| Ordinary Shares - nominal value of €0.0025 | |||
| Allotted, called-up and fully paid: | |||
| Number | Share Capital | Share Premium | |
| € | € | ||
| At 1 January 2023 | 395,382,426 | 988,456 | 6,922,562 |
| Issued during the year | 61,428,571 | 153,571 | 92,557 |
| At 31 December 2023 | 456,810,997 | 1,142,027 | 7,015,119 |
| Issued during the year | 108,000,000 | 270,000 | 48,940 |
| At 31 December 2024 | 564,810,997 | 1,412,027 | 7,064,059 |
| Share Options | 31 December 2024 | 31 December 2023 | ||
| Options | Weighted average exercise price in pence | Options | Weighted average exercise price in pence | |
| Outstanding at beginning of year | 16,100,000 | 1.32 | 16,100,000 | 1.32 |
| Granted during the year | - | - | - | |
| Expired during the year | - | - | - | - |
| Outstanding at end of year | 16,100,000 | 1.32 | 16,100,000 | 1.32 |
| Exercisable at end of year | 16,100,000 | 1.32 | 16,100,000 | 1.32 |
| 31 December 2024 | 31 December2023 | |||
| NUMBER | Number of Warrants | Weighted average exercise price in pence | Number of Warrants | Weighted average exercise price in pence |
| Outstanding at beginning of year | 111,428,571 | 0.42 | 50,000,000 | 0.50 |
| Granted during the year | 108,000,000 | 0.35 | 61,428,571 | 0.35 |
| Expired during the year | (50,000,000) | 0.50 | - | |
| Exercised during the year | - | - | - | |
| Outstanding and exercisable at the end of the year | 169,428,571 | 0.35 | 111,428,571 | 0.42 |
| 2024 € | 2023 € | |
| FAIR VALUE | ||
| At 1 January | 175,952 | 155,690 |
| FV of warrants issued during the year at grant date | 106,641 | 117,509 |
| FV of warrants expired during the year | (1,465) | - |
| Movement in fair value | (144,597) | (97,247) |
| At 31 December | 136,532 | 175,952 |
| 2024 € | 2023 € | |
| Profit/(Loss) due to Fair Value Volatility of Warrants | ||
| Fair Value movements warrants b/fwd | 144,597 | 97,247 |
| Fair Value of warrants expired | 1,465 | - |
| Fair Value new warrants granted | (106,641) | (117,509) |
| Movement for the year | 39,421 | (20,262) |
| Grant 9 May 2024 | |
| Weighted average share price at date of grant (in pence) | 0.21p |
| Weighted average exercise price (in pence) | 0.35p |
| Expected volatility | 93.19% |
| Expected life | 2 years |
| Risk free rate | 4.5% |
| Expected dividends | none |