REG - Arkle Resources PLC - Interim Statement
25/09/2025 07:00
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RNS Number : 6920A Arkle Resources PLC 25 September 2025
25(th) September 2025
Arkle Resources PLC
("Arkle" or the "Company")
Interim Statement for the period ended 30 June 2025
Chairman's Statement
Arkle has two flagship projects, a 22.36% interest in five zinc prone licences
in the Limerick area of Ireland. One of the licences contains a JORC resource
of 5.1 million tonnes of 11% combined lead and zinc.
Our second active project is in Botswana, where we hold 3 licences covering
over 1,600sq km in the Makgadikgadi Salt Pans area. The objective here is
lithium brines. We have found the brines containing lithium on the two
original licences. We only recently received the third licence. We also
found good grades of magnesium a metal growing in demand. Adding magnesium to
lithium is very positive for this project.
While the focus is on the zinc and lithium ground, Arkle also holds hard rock
lithium prospective licences in Ireland and Zimbabwe as well as a gold licence
in Donegal, Ireland.
Zinc in Ireland
We hold a 22.36% interest in five licences in the Stonepark area of Limerick.
Our partner, Group Eleven, holds the balance and is also the operator, so it
decides the exploration programme. Group Eleven holds a number of licences to
the South East of Stonepark. They have been successful in discovering zinc in
the Carrickittle area directly adjacent to Stonepark and on their Ballywire
block further south. Group Eleven believes that there is a base metal bearing
trend running from Ballywire through Carrickittle through our Stonepark block
to the discovery licence in the north of the block. Stonepark is adjacent to
the 45 million tonne Pallas Green zinc discovery.
Group Eleven has announced good results from both Carrickittle and Ballywire.
Ballywire in particular is producing high grades. Three drill rigs are working
in Ballywire. The Group Eleven share price has reflected these good results
more than tripling in the past two years.
Work done by Group Eleven on the Carrickittle ground, which is partially on
our Stonepark ground, produced a high-grade target at depth on the Arkle side
of the ground. While the current focus is on Ballywire, it is the intention of
Group Eleven to drill the Carrickittle target.
Lithium in Botswana
In recent months, Arkle obtained a third licence in the Makgadikgadi Salt
Pans. We now hold over 1,600sq km of ground. Lithium is critical for the
transition to green energy. Most lithium is currently obtained from hard
rocks. Recent years have seen rapid growth in lithium extraction from brines
mainly in salt pans particularly in South America. This growth has often been
hampered by the presence of other metals in the brines particularly magnesium,
which reduces the recovery rates of lithium.
Direct Lithium Extraction (DLE) is a fast-growing technology using membranes
which extract the metals from the brine solution. Of particular relevance to
Arkle is the fact that DLE extracts magnesium before going on to extract
lithium. So, instead of one steam of revenue in your brines, you now have two.
So, it is with our Botswana ground. We ran surveys on the 877sq km of our two
older licences simply to see if they contained brines. They did. We estimated
an average thickness of 10 metres. We then ran a sampling program to see if
the brines contained lithium. Every one did but significantly every sample
also contained magnesium, some samples with significant grade.
The next steps are to conduct an Environmental Impact Assessment, then drill a
significant number of short holes, 30 metres each to obtain bulk samples which
will be shipped to India for analysis. These programmes are funded.
Other Activities
We renewed our three lithium licences in Zimbabwe and have brought in a local
partner who acquired a 30% stake at minimal cost. He, together with our local
representative will decide a strategy for the block.
There has been no activity on our Irish based hard rock lithium licences.
Earlier work identified traces of lithium on all licences.
We maintain one gold licence in the Meeneragh area of Donegal. Earlier work
has identified a gold bearing vein on the block.
Metal Markets
It is worthwhile reminding shareholders about the markets for zinc, lithium
and now magnesium. At today's price of almost $3,000 a ton, zinc is profitable
for most miners. It is an essential ingredient in galvanising, chroming with
growing biomedical and biotech uses. Long term growth rates have risen in
recent years.
Lithium is a vital ingredient in batteries, so the future looks very bright.
Declared a critical mineral by the European Commission action is ongoing to
reduce the current 90% dependence on Chinese processing. The Chinese control
the final price. A huge surge in hard rock lithium mining, particularly in
Australia and China has caused weakness in the price. Lithium from brines
offers significantly lower CAPEX. Lithium demand is expected to double in
2040.
Magnesium is a lightweight metal with growing use in alloys, electronics and
aerospace. It is also used in fertilizers and has growing uses in medicine.
The current price is $2,200 a ton. In the brines in Botswana we have shown
grades in excess of 1% potentially adding extra revenue to this project.
Corporate Activities
In July 2025 Arkle raised £500,000 at 0.3 pence a share with a one for one
warrant. The placing price was a 28% premium on the price of the day. The
funds will be used for the lithium exploration programme in Botswana and, if
thought fit, to fund the Arkle share of exploration on the Stonepark block.
I have written in earlier reports of interest being shown by companies is our
licence portfolio and our AIM listing. In recent months three proposals were
presented to the Arkle board. All involve new projects and / or new
management. Bringing fresh funds to finance the proposed activities is
critical. We have ongoing contact with the principals of two of the three
projects.
Arkle has potential. There is growing excitement around the discoveries in the
Limerick area. We were fortunate to move early to obtain the brine licences in
Botswana, and it was serendipity to find good magnesium grades with lithium
grades.
John Teeling
Chairman
24(th) September 2025
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.
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
Molly Mooney
Arkle Resources plc
Financial Information (Unaudited)
Condensed Consolidated Statement of Comprehensive Income Six Months Ended Year Ended
30 June 25 30 June 24 31 Dec 24
unaudited unaudited audited
€'000 €'000 €'000
Administrative expenses (122) (175) (271)
Impairment of exploration and evaluation assets - - (1,770)
OPERATING LOSS (122) (175) (2,041)
Profit/(Loss) due to fair value volatility of warrants 6 17 39
PROFIT/(LOSS) BEFORE TAXATION (116) (158) (2,002)
Income tax expense - - -
PROFIT/(LOSS) FOR THE PERIOD AND TOTAL COMPREHENSIVE INCOME (116) (158) (2,002)
PROFIT PER SHARE - basic and diluted (0.02)c (0.03)c (0.43)c
Condensed Consolidated Statement of Financial Position 30 June 25 30 June 24 31 Dec 24
unaudited unaudited audited
€'000 €'000 €'000
NON-CURRENT ASSETS
Intangible Assets 2,570 4,199 2,570
CURRENT ASSETS
Other receivables 2 4 -
Cash and cash equivalents 3 169 27
5 173 27
TOTAL ASSETS 2,575 4,372 2,597
LIABILITIES
CURRENT LIABILITIES
Trade and other payables (578) (387) (478)
Warrants (131) (159) (137)
(709) (546) (615)
NET CURRENT LIABILITIES (704) (373) (588)
NET ASSETS 1,866 3,826 1,982
EQUITY
Share Capital - Deferred Shares 992 992 992
Share Capital - Ordinary Shares 1,412 1,412 1,412
Share Premium 7,064 7,064 7,064
Share based payments reserve 156 156 156
Retained deficit (7,758) (5,798) (7,642)
TOTAL EQUITY 1,866 3,826 1,982
Condensed Consolidated Statement of Changes in Shareholders Equity
Called-up Called-up
Share Share Share
Capital Capital Share Based Retained
Deferred Ordinary Premium Reserves Deficit Total
€'000 €'000 €'000 €'000 €'000 €'000
As at 1 January 2024 992 1,142 7,015 156 (5,640) 3,665
Shares issued - 270 49 - - 319
Profit for the period - - - - (158) (158)
As at 30 June 2024 992 1,412 7,064 156 (5,798) 3,826
Shares issued - -
Loss for the period - - - - (1,844) (1,844)
As at 31 December 2024 992 1,412 7,064 156 (7,642) 1,982
Loss for the period - - - - (116) (116)
As at 30 June 2025 992 1,412 7,064 156 (7,758) 1,866
Six Months Ended Year Ended
30 June 25 30 June 24 31 Dec 24
Condensed Consolidated Cash Flow unaudited unaudited audited
€'000 €'000 €'000
CASH FLOW FROM OPERATING ACTIVITIES
Loss for the year (116) (158) (2,002)
Impairment - - 1,770
Fair value movement of warrants (6) (17) (39)
Foreign exchange - - (1)
(122) (175) (272)
(Increase)/Decrease in trade and other receivables (2) (5) -
Increase in trade and other payables 100 48 138
NET CASH USED IN OPERATING ACTIVITIES (24) (132) (134)
CASH FLOW FROM INVESTING ACTIVITIES
Payments for exploration and evaluation - (109) (250)
NET CASH USED IN INVESTING ACTIVITIES - (109) (250)
CASH FLOW FROM FINANCING ACTIVITIES
Proceeds from issue of equity shares - 319 319
NET CASH FROM FINANCING ACTIVITIES - 319 319
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS (24) 78 (65)
Cash and Cash Equivalents at beginning of the period 27 91 91
Effects of exchange rate changes on cash held in foreign currencies - - 1
CASH AND CASH EQUIVALENTS AT END OF THE PERIOD 3 169 27
Notes:
1. INFORMATION
The financial information for the six months ended 30 June 2025 and the
comparative amounts for the six months ended 30 June 2024 are unaudited. The
interim financial statements have been prepared in accordance with IAS 34
Interim Financial Reporting as adopted by the European Union. The interim
financial statements have been prepared applying the accounting policies and
methods of computation used in the preparation of the published consolidated
financial statements for the year ended 31 December 2024.
The interim financial statements do not include all of the information
required for full annual financial statements and should be read in
conjunction with the audited consolidated financial statements of the Group
for the year ended 31 December 2024, which are available on the Company's
website www.arkleresources.com (http://www.arkleresources.com/)
The interim financial statements have not been audited or reviewed by the
auditors of the Group pursuant to the Auditing Practices board guidance on
Review of Interim Financial Information.
2. No dividend is proposed in respect of the period.
3. EARNINGS PER SHARE
Basic earnings per share is computed by dividing the profit 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 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 out the computation for basic and diluted earnings
per share (EPS):
30 June 25 30 June 24 31 Dec 24
Profit/(loss) per share - Basic and Diluted (0.02) c (0.03) c (0.43) c
Basic profit/(loss) per share
The earnings and weighted average number of ordinary shares used in the
calculation of basic loss per share are as follows:
Numerator €'000 €'000 €'000
Loss after taxation (116) (158) (2,002)
Denominator Number Number Number
Weighted average number of ordinary shares 564,810,997 487,583,600 470,126,065
Basic and diluted loss per share are the same as the effect of the outstanding
share options is anti-dilutive.
4. INTANGIBLE ASSETS
30 June 25 30 June 24 31 Dec 24
Exploration and evaluation assets: €'000 €'000 €'000
Cost at 1 January 2,570 4,090 4,090
Additions 8 109 250
Re-imbursement of costs (8) - -
Impairment - - (1,770)
Closing Balance 2,570 4,199 2,570
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 30 June 2025 was owned 23.44% (2024: 23.44%) by Limerick
Zinc Limited (subsidiary of Arkle Resources plc) and 76.56% (2024: 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. In April 2025, Kattagat
Investments (Pvt) Ltd, a local company in Zimbabwe expressed interest in joint
venturing these licences. They re-imbursed past expenditure of US$10,000 to
Arkle.
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.
On 9 July 2025 the Company announced that it has been awarded a prospecting
licence in the Makgadikgadi Salt Pans in Northeastern Botswana. The licence PL
0238/2025 covers 775sq km and is adjacent to the Company's two existing
licences covering 837sq km.
Up to 31 December 2024 the Company incurred expenditure of €1,761,948 on
licences relating to the Mine River Gold Project. During 2024 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 prior year. A further impairment charge of €8,000 was recorded
relating to expenditure on the Hendrick licence that was not renewed.
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 balance sheet would be written off to the statement of
comprehensive income.
The group's activities are subject to a number of
significant potential risks including;
- 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
30 June 2025, the directors are satisfied that the value of the intangible
asset is not less than carrying value.
30 June 25 30 June 24 31 Dec 24
Segmental Analysis €'000 €'000 €'000
Limerick 1,802 1,720 1,802
Rest of Ireland 673 2,418 672
Zimbabwe 29 29 32
Botswana 66 32 64
2,570 4,199 2,570
5. SHARE CAPITAL AND SHARE PREMIUM
2025 2024
€'000 €'000
Authorised
2,000,000,000 Ordinary shares of 0.25c each 5,500 5,000
500,000,000 Deferred shares of 0.75c each 3,750 3,750
8,750 8,750
Share Capital Share Premium
€'000 €'000
Number
Deferred Shares - nominal value of 0.75c 132,311,593 992 -
Share Capital Share Premium
Ordinary Shares - nominal value of 0.25c €'000 €'000
Number
Allotted, Called Up and Fully Paid:
Balance at 1 January 2024 456,810,977 1,142 7,015
Issued during the period 108,000,000 270 49
Balance at 30 June 2024 564,810,977 1,412 7,064
Issued during the period - - -
Balance at 31 December 2024 564,810,977 1,412 7,064
Issued during the period - - -
Balance at 30 June 2024 564,810,997 1,412 7,064
Movement in shares
There was no movement in the share capital for the six months to 30 June
2025.
On 30 July 2025 a total of £500,000 was raised in a placing of shares.
Further information is detailed in Note 8 below.
6. SHARE BASED PAYMENTS - OPTIONS
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.
30 Jun 25 Weighted average exercise price in pence 30 Jun24 Weighted average exercise price in pence 31 Dec 24 Weighted average exercise price in pence
'000 '000 '000
Outstanding at beginning of period 16,100 1.32 16,100 1.32 16,100 1.32
Granted during the period - - - - -
Expired during the period - - - - -
Outstanding at end of period 16,100 1.32 16,100 1.32 16,100 1.32
Exercisable at end of period 16,100 1.32 16,100 1.32 16,100 1.32
7. SHARE BASED PAYMENTS - WARRANTS
Number
30 June 25 30 June 24 31 Dec 24
'000 '000 '000
Outstanding at beginning of period 169,429 111,429 111,429
Granted during the period - 108,000 108,000
Expired during the period - - (50,000)
Closing Balance 169,429 219,429 169,429
Fair Value
30 June 25 30 June 24 31 Dec 24
€'000 €'000 €'000
At beginning of period 137 176 176
Issued during the period - 106 106
Movement in fair value (6) (123) (145)
Closing Balance 131 159 137
30 June 25 30 June 24 31 Dec 24
€'000 €'000 €'000
Profit/(Loss) due to Fair Value Volatility of Warrants
Fair Value movement on warrants brought forward 6 123 144
Fair value of warrants expired - - 1
Fair value of new warrants granted - (106) (106)
Movement for the period 6 17 39
As at 30 June 2025 a total of 169,428,571 warrants with an exercise price of
0.35p per warrant were outstanding. The movement in fair value for the six
months to 30 June 2025 of €5,558 was expensed to the Consolidated Statement
of Comprehensive Income.
8. POST BALANCE SHEET EVENTS
On 30 July 2025 the Company announced that it has raised £500,000 in a
private placing with existing and new shareholders in the United Kingdom and
Ireland at a price of 0.3p per share through the issue of 166,666,667 new
ordinary shares.
Each Placing Share has one warrant attached with the right to subscribe for
one new ordinary share at 0.3p for a period of two years.
9. The Interim Report for the six months to 30 June 2025 was approved by
the Directors on 24(th) September 2025
10. The Interim Report will be available on Arkle Resources PLC's website
www.arkleresources.com (http://www.arkleresources.com) .
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