REG - Arkle Resources PLC - Final Results for the Year Ended 31 December 2024
25/06/2025 07:00
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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
ARKLE RESOURCES PLC
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2024
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)
ARKLE RESOURCES PLC
CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2024
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
ARKLE RESOURCES PLC
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE FINANCIAL YEAR ENDED 31
DECEMBER 2024
Called up Share Called up Share Share Share Based Payment Retained
Capital Capital Ordinary Premium Reserve Deficit Total
Deferred
€ € € € € €
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
ARKLE RESOURCES PLC
CONSOLIDATED CASH FLOW STATEMENT
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2024
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
Notes:
1. Accounting Policies
There were no changes in accounting policies from those used to prepare the
Group's Annual Report for financial year ended 31 December 2023. The financial
statements have been prepared in accordance with International Financial
Reporting Standards (IFRSs) as adopted by the European Union and in accordance
with the Companies Act 2014.
2. Earnings per Share
Basic earnings per share is computed by dividing the loss after taxation for
the year attributable to ordinary shareholders by the weighted average number
of ordinary shares in issue and ranking for dividend during the year. Diluted
earnings per share is computed by dividing the profit or loss after taxation
for the year by the weighted average number of ordinary shares in issue,
adjusted for the effect of all dilutive potential ordinary shares that were
outstanding during the year.
The following table sets forth the computation for basic and diluted earnings
per share (EPS):
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.
3. Going Concern
The Group and Company incurred a loss for the financial year of €2,001,750
(2023: €297,021) and the Group had net current liabilities of €587,336
(2023: €424,108) at the statement of financial position date leading to
concern about the Company and Group's ability to continue as a going concern.
The Group had a cash balance of €27,303 (2023: €91,082) at the statement
of financial position date.
Included in current liabilities is an amount of €307,500 (2023: €262,500)
owed to key management personnel in respect of remuneration due at the balance
sheet date. Key management have confirmed that they will not seek settlement
of these amounts in cash for a period of at least one year after the date of
approval of the financial statements or until the Group has generated
sufficient funds from its operations after paying its third party creditors.
The directors have prepared cashflow projections for a period of at least
twelve months from the date of approval of these financial statements. As the
Group and the Company are not revenue or cash generating they rely on raising
capital from the public market. The cash flow projections prepared by the
Group and Company indicate that additional finances will be required to meet
the obligations of the Group and Company for a period of at least twelve
months from the date of approval of these financial statements. The directors
are confident that additional capital can be raised as required. The Group
raised £270,000 during the year from a placing.
As in previous years the Directors have given careful consideration to the
appropriateness of the going concern basis in the preparation of the financial
statements and believe the going concern basis is appropriate for these
financial statements. The financial statements do not include any adjustment
to the carrying amount, or classification of assets and liabilities, if the
Company or Group was unable to continue as a going concern.
4. Intangible Assets
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
In 2007 the Group entered into an agreement with Teck Cominco which gave Teck
Cominco the option to earn a 75% interest in a number of other licences held
by the Group. Teck Cominco had to spend CAD$3m to earn the interest. During
2012 the relevant licences were transferred to a new company, TILZ Minerals
Limited, which at 31 December 2024 was owned 23.44% (2023: 23.44%) by Limerick
Zinc Limited (subsidiary of Arkle Resources plc) and 76.56% (2023: 76.56%) by
Group Eleven Resources Corp (third party).
On 13 September 2017 the board of Arkle Resources plc were informed that Group
Eleven Resources Corp. a private company, has acquired the 76.56% interest
held by Teck Ireland in TILZ Minerals. Arkle Resources plc owns the remaining
23.44%.
The Group's share of expenditure on the licences continues to be capitalised
as an exploration and evaluation asset. The Group is subject to cash calls
from Group Eleven Resources Corp. in respect of the financing of the ongoing
exploration and evaluation of these licences. In the event that the Group
decides not to meet these cash calls its interest in TILZ Minerals Limited may
be diluted accordingly.
On 23 June 2022 the Company announced it had been granted three licences
covering 163 hectres to prospect for Lithium in the Insiza District of the
Matabeleland South Province of Zimbabwe. The Directors believe that these
licences, which cover a small area, represent a low-cost entry into one of the
largest lithium producing countries in the world.
On 15 December 2023 the Company announced that it has been awarded two
exploration licences in the Makgadikgadi Salt Pans in North-Eastern Botswana.
The licences, PL 075/2023 and PL 0148/2023, cover 312 and 525 sq kilometres
respectively in size. The licences are awarded to prospect for lithium in
the Salt Pans.
The Company incurred expenditure to date of €1,761,948 on licences relating
to the Mine River Gold Project. During the current year these licences
lapsed and were not renewed. The directors decided to fully impair the
expenditure and accordingly, an impairment charge of €1,761,948 was recorded
in the current year. A further impairment charge of €8,000 was recorded
relating to expenditure on the Hendrick licence that was not renewed in the
current year.
The realisation of the intangible assets is dependent on the discovery and
successful development of economic reserves which is subject to a number of
risks as outlined below. Should this prove unsuccessful the carrying value
included in the statement of financial position would be written off to the
statement of comprehensive income.
- uncertainties over development and
operational risks;
- compliance with licence obligations;
-ability to raise finance to develop assets;
- liquidity risks; and
- going concern risks.
The directors are aware that by its nature there is an inherent uncertainty in
such exploration and evaluation expenditure as to the value of the asset.
Having reviewed the carrying value of exploration and evaluation of assets at
31 December 2024 the directors are satisfied that the value of the intangible
asset is not less than carrying value.
Segmental Analysis
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
5. Trade payables
Group Group
2024 2023
€ €
Current assets:
Trade and other payables 155,964 63,526
Accruals 322,500 276,500
478,464 340,026
It is the Group's normal practice to agree terms of transactions, including
payment terms, with suppliers and provided suppliers perform in accordance
with the agreed terms, it is the Group's policy that payment is made between
30 - 45 days. Included in accruals are amounts due for directors' remuneration
of €307,500 (2023: €262,500) accrued but not paid at year end.
The carrying value of trade and other payables approximates to their fair
value.
6. Share Capital and Share Premium
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
On 25 July 2024 a resolution was passed to increase the authorised share
capital of the Company from €6,250,000 to €8,750,000 by the creation of
1,000,000,000 ordinary shares of €0.0025 each in the capital of the Company.
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
Deferred share capital
The deferred share reserve comprises of the value of the deferred shares that
arose when the company divided the ordinary shares via special resolution on
22 April 2020 the shares into 500,000,000 deferred shares of 0.75 cent each
and 500,000,000 ordinary shares of 0.25 cent each.
Called up ordinary share capital
The called up ordinary share capital reserve comprises of the nominal value of
the issued share capital of the company.
Share premium
The share premium reserve comprises of a premium arising on the issue of
shares. Share issue expenses are deducted against the share premium reserve
when incurred.
Movement in shares
On 9 May 2024, a total of 108,000,000 shares were issued at a price of 0.25p
per share to provide additional working capital and fund development costs.
For each share subscribed for, the investors also received one warrant to
subscribe for an additional ordinary share at a price of 0.35p per share until
9 May 2026.
7. Share Based Payments
Equity-settled share-based payments are measured at fair value at the date of
grant.
The Group plan provides for a grant price equal to the average quoted market
price of the ordinary shares on the date of grant.
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
The terms of the options granted do not contain any market conditions within
the meaning of IFRS 2.
8. Warrants
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)
On 24 November 2024, a total of 50,000,000 warrants with an exercise price of
0.50p per warrant expired and the fair value of €1,465 was expensed to the
Consolidated Statement of Comprehensive Income. The fair value was calculated
using the Black-Scholes valuation model.
On 9 May 2024, a total of 108,000,000 warrants with an exercise price of 0.35p
per warrant were granted as part of the placing. The fair value of €106,641
to 31 December 2024 was expensed to the Consolidated Statement of
Comprehensive Income. The fair value was calculated using the Black-Scholes
valuation model.
The inputs into the Black-Scholes valuation model were as follows:
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
Expected volatility was determined by management based on their cumulative
experience of the movement in share prices.
The terms of the warrants granted do not contain any market conditions within
the meaning of IFRS 2.
9. Post Balance Sheet Events
There were no material post balance sheet events affecting the Company or
Group.
10. Annual General Meeting
The Company's Annual General Meeting will be held at held at the Hotel Riu
Plaza The Gresham, 23 O'Connell Street Upper, North City Dublin, D01 C3W7,
Ireland on 30 July 2025 at 10.00am.
General Information
The financial information set out above does not constitute the Company's
financial statements for the year ended 31 December 2024. The financial
information for 2023 is derived from the financial statements for 2023 which
have been delivered to the Companies Registration Office. The auditors have
reported on 2023 statements; their report was unqualified. The financial
statements for 2024 will be delivered to the Companies Registration Office.
A copy of the Company's Annual Report and Accounts for 2024 will be mailed to
all shareholders shortly and will also be available for collection from the
Company's registered office, 162 Clontarf Road, Dublin 3, Ireland. The
annual report will shortly be available for viewing at Arkle's website at
www.arkleresources.com (http://www.arkleresources.com)
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