REG - Beowulf Mining PLC - Unaudited Financial Results
29/11/2023 07:00
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RNS Number : 9785U Beowulf Mining PLC 29 November 2023
The information contained within this announcement is deemed to constitute
inside information as stipulated under the Market Abuse Regulation ("MAR")
(EU) No. 596/2014, as incorporated into UK law by the European Union
(Withdrawal) Act 2018. Upon the publication of this announcement, this inside
information is now considered to be in the public domain.
29 November 2023
Beowulf Mining plc
("Beowulf" or the "Company")
Unaudited Financial Results for the Period Ended 30 September 2023
Beowulf Mining (AIM: BEM; Spotlight: BEO), the mineral exploration and
development company, announces its unaudited financial results for the nine
months ended 30 September 2023 (the "Period").
Activities in the Period
Sweden
· Following the announcement of the Scoping Study for Kallak North
in January 2023, the Company, through its 100% owned subsidiary Jokkmokk Iron
Mines AB ("Jokkmokk Iron"), continued to engage with key stakeholders and
advance a number of work streams. The strategic review was advanced during the
Period focusing on options to optimise the development and ultimate value of
the asset.
· Environmental baseline studies progressed in preparation for the
completion of the Environmental Impact Assessment ("EIA"). These studies
included monitoring and assessment of nature values, sound and vibration,
hydrology and cultural heritage.
· A formal recruitment process was initiated for a high-calibre
individual to lead the further development of the project, including
stakeholder engagement.
· A number of public meetings with the communities of Jokkmokk,
including residents of the villages closest to the project, were held.
Finland
· During the Period, Beowulf, through its wholly owned Finnish
subsidiary Grafintec Oy, completed the Pre-Feasibility Study ("PFS") for the
establishment of a Graphite Anode Materials Plant ("GAMP") located in the
GigaVaasa area, in the municipality of Korsholm on the west coast of Finland.
· The PFS demonstrated very positive initial economics with a
post-tax net present value (using an 8% discount rate) of US$242 million and
an internal rate of return of 39%.
· The study, prepared by the engineering consultancy RB Plant
Construction Ltd ("RB Plant"), is based on an industrial plant with a total
production capacity of 20,000 tonnes per annum of Coated Spherical Graphite
("CSPG") over an initial 10-year period and with initial capital expenditure
of US$117 million.
· The Environmental Impact Assessment ("EIA") was progressed during
the Period and is expected to be completed in Q1 2024, after which, the
Company will initiate work on the Environmental Permit process.
· Following the conclusion of the PFS, bench-scale test work has
been initiated and will be followed by pilot-scale test work with the
Definitive Feasibility Study ("DFS") scheduled to begin in mid-2024.
Kosovo
· Vardar Minerals, which is 61.1 per cent owned by Beowulf,
undertook further low-cost field work including mapping, soil and grab
sampling and reconnaissance work across its tenement package during the three
months ended 30 September 2023.
· The focus of the activity was on the Shala Central area where the
Company undertook mapping, surface sampling and a drone magnetic survey.
· Further reconnaissance work was undertaken on the Shala East and
Shala West licences in preparation for a systematic mapping and sampling
programme.
Corporate
· On 10 July 2023, Mikael Schauman was appointed as Non-Executive
Director.
· On 21 July 2023, the settlement in relation to Kurt Budge's
resignation was agreed and subsequently paid on 27 July 2023.
· On 7 August 2023, Ed Bowie joined the Company as Chief
Executive Officer and Director.
· On 16 August 2023, Ulla Sandborgh stepped down as Chief
Executive Officer of Jokkmokk Iron.
Financial
· The underlying administration expenses of £580,203 in Q3 2023
exceeded Q3 2022 of £465,869. This increase is primarily due to professional
fees of £191,394 (Q3 2022: £130,675), P.R. services of £30,704 (Q3 2022:
£11,403) and legal fees of £52,452 (Q3 2022: £4,643). Professional and
legal fees increased primarily due to non-recurring advisor fees in relation
to the group directorship changes within the period.
· The consolidated loss before tax for Q3 2023 of £586,127 was in
line with Q3 2022 of £593,178, due to a decrease in finance charge to £166
(Q3 2022: £146,120), as a result of the bridging loan being repaid in Q1
2023, being offset by the increase in administration costs mentioned above.
· The consolidated loss before tax for the nine months to 30
September 2023 increased to £2,385,743 (30 September 2022: £1,276,785). This
increase is primarily due to share-based payment expenses of £363,354 (30
September 2022: £127,491), professional fees of £596,590 (30 September 2022:
£270,144), directors and staff costs of £545,257 (30 September 2022:
£278,476), and a foreign currency loss of £172,563 (30 September 2022:
£20,777) combined with finance costs in relation to the bridging loan of
£195,304 (30 September 2022: £146,080), which was fully repaid in the
period.
· Consolidated basic and diluted loss per share for the quarter
ended 30 September 2023 was 0.05 pence (Q3 2022: loss of 0.07 pence).
· The Company raised SEK 80.8 million (approximately £6.4
million) before expenses as part of the Capital Raise which closed on 7 March
2023, of which, the net proceeds have been used to repay the bridging loan
principal and interest of SEK 24.8 million (approximately £2.04 million).
· £1,719,066 in cash was held at 30 September 2023 (30 September
2022: £2,758,152).
· Exploration assets increased to £14,331,830 at 30 September 2023
compared to £12,355,983 at 30 September 2022.
· The cumulative translation losses held in equity increased by
£514,032 in the nine months ended 30 September 2023 to £1,803,447 (31
December 2022: loss of £1,289,415). Much of the Company's exploration costs
are in Swedish Krona which has weakened against the pound since 31 December
2022.
· At 30 September 2023, there were 911,545,973 Swedish Depository
Receipts representing 78.77% per cent of the issued share capital of the
Company. The remaining issued share capital of the Company is held in the UK.
Post Period Activities
Sweden
· Following the end of the Period, the PFS for the Kallak Project
was initiated with the appointment of SLR Consultant Limited ("SLR") as lead
consultant. In addition, samples were selected for metallurgical test work and
the preliminary roadmap for next phase of the project's development was
defined.
· Jokkmokk Iron was awarded exploration license Kallak nr 101. The
licence is a renewal of the previous exploration licence, Kallak nr 1, held by
the Company, and surrounds the Kallak exploitation concession, Kallak K nr 1,
awarded in March 2022.
Ed Bowie, Chief Executive Officer of Beowulf, commented:
"The Company has made significant progress on a number of fronts. The
strategic review of Kallak was initiated to identify key value drivers for the
project. As a result of the review, a metallurgical test-work programme has
been defined and initiated at the front-end of the PFS, to demonstrate that
Kallak has the potential to produce a market leading iron ore concentrate
which has the potential to enhance the project returns. We continue to engage
with local stakeholders as we advance our technical and environmental studies
for the project.
"The PFS at Grafintec's GAMP project has demonstrated very robust economics.
Since the end of the Period, China announced export controls on graphite
products, highlighting the current dependence of the global lithium-ion
battery industry on China. At the same time, the EU has voted in support of
the Critical Raw Materials Act ("CRM Act"), focused on ensuring secure supply
of graphite and other commodities essential for the green transition.
Grafintec's business strategy, to become an independent and secure supplier of
anode materials to battery manufacturers, is fully aligned with the CRM Act.
"In Kosovo, Vardar Minerals has been completing low-cost but critical baseline
mapping and sampling on our extensive Shala licences. The area contains
kilometre-scale hydrothermal alteration systems with significant base and
precious metal content identified in soils and grab samples. Follow-up work
including detailed mapping, infill sampling and drone magnetic surveys, are
helping to better define future drill targets."
Enquiries:
Beowulf Mining plc
Ed Bowie, Chief Executive Officer Tel: +44 (0) 20 7583 8304
SP Angel
(Nominated Adviser & Broker)
Ewan Leggat / Stuart Gledhill / Adam Cowl Tel: +44 (0) 20 3470 0470
BlytheRay
Tim Blythe / Megan Ray Tel: +44 (0) 20 7138 3204
Cautionary Statement
Statements and assumptions made in this document with respect to the Company's
current plans, estimates, strategies and beliefs, and other statements that
are not historical facts, are forward-looking statements about the future
performance of Beowulf. Forward-looking statements include, but are not
limited to, those using words such as "may", "might", "seeks", "expects",
"anticipates", "estimates", "believes", "projects", "plans", strategy",
"forecast" and similar expressions. These statements reflect management's
expectations and assumptions in light of currently available information. They
are subject to a number of risks and uncertainties, including, but not limited
to , (i) changes in the economic, regulatory and political environments in the
countries where Beowulf operates; (ii) changes relating to the geological
information available in respect of the various projects undertaken; (iii)
Beowulf's continued ability to secure enough financing to carry on its
operations as a going concern; (iv) the success of its potential joint
ventures and alliances, if any; (v) metal prices, particularly as regards iron
ore. In the light of the many risks and uncertainties surrounding any mineral
project at an early stage of its development, the actual results could differ
materially from those presented and forecast in this document. Beowulf assumes
no unconditional obligation to immediately update any such statements and/or
forecast.
About Beowulf Mining plc
Beowulf Mining plc ("Beowulf" or the "Company") is an exploration and
development company, listed on the AIM market of the London Stock Exchange and
the Spotlight Exchange in Sweden. The Company listed in Sweden in 2008 and, at
30 September 2023, was 78.77 per cent owned by Swedish shareholders.
Beowulf's purpose is to be a responsible and innovative company that creates
value for our shareholders, wider society and the environment, through
sustainably producing critical raw materials, which includes iron ore,
graphite and base metals, needed for the transition to a Green Economy.
The Company has an attractive portfolio of assets, including commodities such
as iron ore, graphite, gold and base metals, with activities in exploration,
the development of mines and downstream production in Sweden, Finland and
Kosovo.
The Company's most advanced project is the Kallak iron ore asset in northern
Sweden from which testwork has produced a 'market leading' magnetite
concentrate of 71.5 per cent iron content. In the Kallak area, the Mineral
Resources of the deposits have been classified according to the PERC Standards
2017, as was reported by the Company via RNS on 25 May 2021, based on a
revised resource estimation by Baker Geological Services. The total Measured
and Indicated resource reports at 132 million tonnes ("Mt") grading 28.3 per
cent iron ("Fe"), with an Inferred Mineral Resource of 39 Mt grading 27.1 per
cent Fe.
In Finland, Grafintec, a wholly-owned subsidiary, is developing a resource
footprint of natural flake graphite and the capability to serve the anode
manufacturing. Grafintec is working towards creating a sustainable value chain
in Finland from high quality natural flake graphite resources to anode
material production, leveraging renewable power, targeting Net Zero CO(2)
emissions across the supply chain.
In Kosovo, the Company owns approximately 61.1 per cent of Vardar Minerals
("Vardar"), which is focused on exploration in the Tethyan Belt, a major
orogenic metallogenic province for gold and base metals. Vardar is
delivering exciting results for its Mitrovica licence which has several
exploration targets, including lead, zinc, copper and gold. It also has the
Viti licence which is showing potential for copper-gold porphyry
mineralisation. With Beowulf's support, Vardar is focused on making a
discovery.
Kallak is the foundation asset of the Company, and, with Grafintec and Vardar,
each business area displays strong prospects, presents opportunities to grow,
with near-term and longer-term value-inflection points.
Beowulf wants to be recognised for living its values of Respect, Partnership
and Responsibility. The Company's ESG Policy is available on the website
following the link below:
https://beowulfmining.com/about-us/esg-policy/
(https://beowulfmining.com/about-us/esg-policy/)
BEOWULF MINING PLC
CONDENSED CONSOLIDATED INCOME STATEMENT
FOR THE NINE MONTHS TO 30 SEPTEMBER 2023
Notes (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited)
3 months ended 30 September 3 months ended 30 September 9 months ended 30 September 9 months ended 30 September 12 months ended 31 December 2022
2023 2022 2023 2022
£
£ £ £ £
Continuing operations
Administrative expenses (580,203) (465,869) (2,270,959) (1,200,815) (1,843,570)
Impairment of exploration assets (8,232) - (8,232) - -
Operating loss (588,435) (465,869) (2,279,191) (1,200,815) (1,843,570)
Gain on disposal of investment - - - - 21,951
Finance costs (166) (146,120) (195,901) (146,237) (304,806)
Finance income 2,474 19 6,111 49 176
Grant income - 18,792 83,238 70,218 84,797
Loss before and after taxation (586,127) (593,178) (2,385,743) (1,276,785) (2,041,452)
Loss attributable to:
Owners of the parent (567,924) (579,997) (2,328,669) (1,224,658) (1,948,459)
Non-controlling interests (18,203) (13,181) (57,074) (52,127) (92,993)
(586,127) (593,178) (2,385,743) (1,276,785) (2,041,452)
Loss per share attributable to the owners of the parent:
Basic and diluted (pence) 3 (0.05) (0.07) (0.22) (0.15) (0.23)
BEOWULF MINING PLC
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE LOSS
FOR THE NINE MONTHS TO 30 SEPTEMBER 2023
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited)
3 months ended 30 September 3 months ended 30 September 9 months ended 30 September 9 months ended 30 September 12 months ended 31 December 2022
2023 2022 2023 2022
£
£ £ £ £
Loss for the period/year (586,127) (593,178) (2,385,743) (1,276,785) (2,041,452)
Other comprehensive income/(loss)
Items that may be reclassified subsequently to profit or loss:
Exchange gain/(losses) arising on translation of foreign operations 242,667 118,105 (541,940) 63,197 (32,945)
Total comprehensive loss (343,460) (475,073) (2,927,683) (1,213,588) (2,074,397)
Total comprehensive loss attributable to:
Owners of the parent (330,220) (477,478) (2,841,861) (1,193,404)
(2,020,889)
Non-controlling interests (13,240) 2,405 (85,822) (20,184) (53,508)
(343,460) (475,073) (2,927,683) (1,213,588) (2,074,397)
BEOWULF MINING PLC
CONDENSED COMPANY STATEMENT OF COMPREHENSIVE INCOME
FOR THE NINE MONTHS TO 30 SEPTEMBER 2023
Notes (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited)
3 months ended 30 September2023 3 months ended 30 September 9 months ended 30 September 9 months ended 30 September 12 months ended 31 December 2022
2022 2023 2022
£ £
£ £ £
Continuing operations
Administrative expenses (584,303) (337,723) (2,207,759) (836,429) (1,090,254)
Operating loss (584,303) (337,723) (2,207,759) (836,429) (1,090,254)
Gain on disposal of investment - - - - 21,951
Finance cost - (146,080) (195,304) (146,080) (304,529)
Finance income 2,362 18 5,849 48 170
Loss before and after taxation and total comprehensive loss (581,941) (483,785) (2,397,214) (982,461) (1,372,662)
Loss per share attributable to the owners of the parent:
Basic and diluted 3 (0.05) (0.06) (0.23) (0.12) (0.17)
(pence)
BEOWULF MINING PLC
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 SEPTEMBER 2023
(Unaudited) (Unaudited) (Audited)
As at As at As at
30 September 30 September 31
2023 2022 December
£ £ 2022
£
ASSETS Notes
Non-current assets
Intangible assets 6 14,356,876 12,355,983 13,002,465
Property, plant and equipment 98,206 118,269 129,715
Loans and other financial asset 5,122 5,218 5,181
Right of use asset 10,324 3,386 19,279
14,470,528 12,482,856 13,156,640
Current assets
Trade and other receivables 149,713 150,101 220,427
Cash and cash equivalents 1,719,066 2,758,152 1,776,556
1,868,779 2,908,253 1,996,983
TOTAL ASSETS 16,339,307 15,391,109 15,153,623
EQUITY
Shareholders' equity
Share capital 4 11,571,875 8,317,106 8,317,106
Share premium 27,141,444 24,689,311 24,689,311
Merger reserve 137,700 137,700 137,700
Capital contribution reserve 46,451 46,451 46,451
Share-based payment reserve 5 879,452 403,052 516,098
Translation reserve (1,802,607) (1,185,731) (1,289,415)
Accumulated losses (22,700,224) (19,599,613) (20,323,414)
15,274,091 12,808,276 12,093,837
Non-controlling interests 531,051 602,056 568,732
TOTAL EQUITY 15,805,142 13,410,332 12,662,569
LIABILITIES
Current liabilities
Trade and other payables 523,602 260,497 625,730
Lease liability 9,012 3,475 10,840
Borrowings 7 - 1,716,805 1,845,947
532,614 1,980,777 2,482,517
NON-CURRENT LIABILITIES
Lease liability 1,551 - 8,537
TOTAL LIABILITIES 534,165 1,980,777 2,491,054
TOTAL EQUITY AND LIABILITIES 16,339,307 15,391,109 15,153,623
BEOWULF MINING PLC
CONDENSED COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 30 SEPTEMBER 2023
(Unaudited) (Unaudited) (Audited)
As at 30 September As at 30 September As at 31
2023 2022 December
£ £ 2022
£
ASSETS Notes
Non-current assets
Investments 3,944,781 3,594,786 3,645,181
Loans and other financial assets 12,611,534 10,502,521 11,084,289
Property, plant and equipment 678 904 834
16,556,993 14,098,211 14,730,304
Current assets
Trade and other receivables 58,512 24,664 53,284
Cash and cash equivalents 1,572,690 2,395,871 1,667,840
1,631,202 2,420,535 1,721,124
TOTAL ASSETS 18,188,195 16,518,746 16,451,428
EQUITY
Shareholders' equity
Share capital 4 11,571,875 8,317,106 8,317,106
Share premium 27,141,444 24,689,311 24,689,311
Merger reserve 137,700 137,700 137,700
Capital contribution reserve 46,451 46,451 46,451
Share-based payment reserve 5 879,452 403,052 516,098
Accumulated losses (21,714,669) (18,927,254) (19,317,455)
TOTAL EQUITY 18,062,253 14,666,366 14,389,211
LIABILITIES
Current liabilities
Trade and other payables 125,942 135,575 216,270
Borrowings 7 - 1,716,805 1,845,947
TOTAL LIABILITIES 125,942 1,852,380 2,062,217
TOTAL EQUITY AND LIABILITIES 18,188,195 16,518,746 16,451,428
BEOWULF MINING PLC
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE NINE MONTHS TO 30 SEPTEMBER 2023
Share capital Share premium Merger reserve Capital contribution reserve Share-based payment reserve Translation reserve Accumulated losses Total Non- Total equity
controlling
interest
£ £ £ £ £ £ £ £ £ £
8,317,106 24,689,311 137,700 46,451 668,482 (1,216,985) (18,470,675) 14,171,390 325,039 14,496,429
At 1 January 2022
Loss for the period - - - - - - (1,224,658) (1,224,658) (52,127) (1,276,785)
Foreign exchange translation - - - - - 31,254 - 31,254 31,943 63,197
Total comprehensive loss - - - - - 31,254 (1,224,658) (1,193,404) (20,184) (1,213,588)
Transactions with owners
Equity-settled share-based payment transactions - - - - 127,491 - - 127,491 - 127,491
Step up interest in subsidiary - - - - - - (297,201) (297,201) 297,201 -
Transfer on lapse of options - - - - (392,921) - 392,921 - -
At 30 September 2022 (Unaudited and Restated) 8,317,106 24,689,311 137,700 46,451 403,052 (1,185,731) (19,599,613) 12,808,276 602,056 13,410,332
Loss for the period - - - - - - (723,801)
(723,801) (40,866) (764,667)
Foreign exchange translation - - - - - (103,684) - 7,542
(103,684) (96,142)
Total comprehensive loss - - - - - (103,684) (723,801) (827,485) (33,324) (860,809)
Transactions with owners
Equity-settled share-based payment transactions - - - - 113,046 - - 113,046 - 113,046
At 31 December 2022 (Audited) 8,317,106 24,689,311 137,700 46,451 516,098 (1,289,415) (20,323,414) 12,093,837 568,732 12,662,569
Loss for the period - - - - - - (2,328,669)
(2,328,669) (57,074) (2,385,743)
Foreign exchange translation - - - - - (513,192) - (513,192) (28,748) (541,940)
Total comprehensive loss - - - - - (513,192) (2,328,669) (2,841,861) (85,822) (2,927,683)
Transactions with owners
Issue of share capital 3,254,769 3,654,829 - - - - - 6,909,598 - 6,909,598
Cost of issue - (1,202,696) - - - - - (1,202,696) - (1,202,696)
Equity-settled share-based payment transactions - - - - 363,354 - - 363,354 - 363,354
Step acquisition of Subsidiary - - - - - - (48,141) (48,141) 48,141 -
At 30 September 2023 (Unaudited) 11,571,875 27,141,444 137,700 46,451 879,452 (1,802,607) (22,700,224) 15,274,091 531,051 15,805,142
BEOWULF MINING PLC
CONDENSED COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE NINE MONTHS TO 30 SEPTEMBER 2022
Share capital Share premium Merger reserve Capital contribution reserve Share-based payment reserve Accumulated losses Total
£ £ £ £ £ £ £
8,317,106 24,689,311 137,700 46,451 668,482 (18,337,714) 15,521,336
At 1 January 2022
Loss for the period - - - - - (982,461) (982,461)
Total comprehensive loss - - - - - (982,461) (982,461)
Transactions with owners
Equity-settled share-based payment transactions - - - - 127,491 - 127,491
Transfer on lapse of options - - - - (392,921) 392,921 -
At 30 September 2022 (Unaudited) 8,317,106 24,689,311 137,700 46,451 403,052 (18,927,254) 14,666,366
Loss for the period - - - - - (390,201) (390,201)
Total comprehensive loss - - - - - (390,201) (390,201)
Transactions with owners
Equity-settled share-based payment transactions - - - - 113,046 - 113,046
At 31 December 2022 (Audited) 8,317,106 24,689,311 137,700 46,451 516,098 (19,317,455) 14,389,211
Loss for the period - - - - - (2,397,214) (2,397,214)
Total comprehensive loss - - - - - (2,397,214) (2,397,214)
Transactions with owners
Issue of share capital 3,254,769 3,654,829 - - - - 6,909,598
Cost of issue - (1,202,696) - - - - (1,202,696)
Equity-settled share-based payment transactions - - - - 363,354 - 363,354
At 30 September 2023 (Unaudited) 11,571,875 27,141,444 137,700 46,451 879,452 (21,714,669) 18,062,253
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR
THE NINE MONTHS TO 30 SEPTEMBER 2023
1. Nature of Operations
Beowulf Mining plc (the "Company") is domiciled in England and Wales. The
Company's registered office is 201 Temple Chambers, 3-7 Temple Avenue, London,
EC4Y 0DT. This consolidated financial information comprises that of the
Company and its subsidiaries (collectively the 'Group' and individually 'Group
companies'). The Group is engaged in the acquisition, exploration and
evaluation of natural resources assets and has not yet generated revenues.
2. Basis of preparation
The condensed consolidated financial information has been prepared on the
basis of the recognition and measurement requirements of UK-adopted
International Accounting Standards (IFRS). The accounting policies, methods of
computation and presentation used in the preparation of the interim financial
information are the same as those used in the Group's audited financial
statements for the year ended 31 December 2022.
The financial information in this statement does not constitute full statutory
accounts within the meaning of Section 434 of the UK Companies Act 2006. The
financial information for the period ended 30 September 2023 is unaudited and
has not been reviewed by the auditors. The financial information for the
twelve months ended 31 December 2022 is an extract from the audited financial
statements of the Group and Company. The auditor's report on the statutory
financial statements for the year ended 31 December 2022 was unqualified but
did include a material uncertainty relating to going concern.
The financial statements are presented in GB Pounds Sterling. They are
prepared on the historical cost basis or the fair value basis where the fair
valuing of relevant assets and liabilities has been applied.
Management have prepared cash flow forecasts which indicate that the Group
will need to raise further funds within the next 12 months for corporate
overheads and to advance its key projects and investments.
The Directors are confident they are taking all necessary steps to ensure that
the required finance will be available, and they have successfully raised
equity finance in the past. They have therefore concluded that it is
appropriate to prepare the financial statements on a going concern basis.
However, while they are confident of being able to raise the new funds as they
are required, there are currently no agreements in place, and there can be no
certainty that they will be successful in raising the required funds within
the appropriate timeframe.
These conditions indicate the existence of a material uncertainty which may
cast significant doubt over the Group's and the Company's ability to continue
as a going concern and that it may be unable to realise its assets and
discharge its liabilities in the normal course of business. The financial
statements do not include any adjustments that would result if the Company was
unable to continue as a going concern.
3. Loss per share
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited)
3 months 3 months 9 months 9 months 12 months
ended ended ended ended ended
Group 30 30 30 30 31 December 2022
September September September September
2023 2022 2023 2022
Loss for the period/year attributable to shareholders of the Company (£'s) (567,924) (579,997) (2,328,669) (1,224,658) (1,948,459)
Weighted average number of ordinary shares 1,157,187,463 831,710,636 1,061,458,984 831,710,636 831,710,636
Loss per share (p) (0.05) (0.07) (0.22) (0.15) (0.23)
Parent
Loss for the period/year attributable to shareholders of the Company (£'s) (581,941) (483,785) (2,397,214) (982,461) (1,372,662)
Weighted average number of ordinary shares 1,157,187,463 831,710,636 1,061,458,984 831,710,636 831,710,636
Loss per share (p) (0.05) (0.06) (0.23) (0.12) (0.17)
4. Share capital
(Unaudited) (Unaudited) (Audited)
30 September 2023 30 September 2022 31 December 2022
£ £ £
Allotted, issued and fully paid
Ordinary shares of 1p each 11,571,875 8,317,106 8,317,106
The number of shares in issue was as follows:
Number
of shares
Balance at 1 January 2022 831,710,636
Issued during the period -
Balance at 30 September 2022 831,710,636
Issued during the period -
Balance at 31 December 2022 831,710,636
Issued during the period 325,476,827
Balance at 30 September 2023 1,157,187,463
5. Share based payments
During the period ended 30 September 2023, 12,250,000 options were granted
(2022: 23,250,000). The options outstanding as at 30 September 2023 have an
exercise price in the range of 1 pence to 7.35 pence (2022: 1.00 pence to 7.35
pence) and a weighted average remaining contractual life of 6 years, 21 days
(2022: 7 years, 199 days).
The share-based payments expense for the options for the period ended 30
September 2023 was £363,354 (2022: £127,491).
The fair value of share options granted and outstanding were measured using
the Black-Scholes model, with the following inputs:
2023 2022 2019
Number of options 12,250,000 20,750,000 2,500,000 9,250,000
Fair value at grant date 0.52p 3.12p 3.59p 1.15p
Share price 1.68p 4.00p 4.00p 5.65p
Exercise price 2.06p 5.25p 1.00p 7.35p
Expected volatility 55.20% 100.00% 100% 51.89%
Option life 5 years 10 years 10 years 5 years
Risk free interest rate 4.800% 4.480% 4.520% 0.718%
The options issued will be settled in the equity of the Company when exercised
and have a vesting period of one year from date of grant.
Reconciliation of options in issue Number Weighted average exercise price(£'s)
Outstanding at 1 January 2023 32,500,000 0.055
Granted during the period 12,250,000 0.021
Outstanding at 30 September 2023 44,750,000 0.046
Exercisable at 30 September 2023 37,250,000 0.042
6. Intangible Assets: Group
Exploration assets Other intangible assets Total
Net book value £ £ £
As at 31 December 2022 (Audited) 13,002,465 - 13,002,465
As at 30 September 2023 (Unaudited) 14,332,665 24,211 14,356,876
Exploration costs As at 30 As at 31 December
September 2022
2023
(Unaudited) (Audited)
£ £
Cost
At 1 January 13,002,465 11,235,656
Additions for the year - cash 1,652,163 1,536,674
Additions for the year - non-cash 215,122 314,272
Foreign exchange movements (528,853) (47,149)
Impairment (8,232) (36,988)
Total 14,332,665 13,002,465
The net book value of exploration costs is comprised of expenditure on the
following projects:
As at As at
30 31
September December
2023 2022
(Unaudited) (Audited)
£ £
Project Country
Kallak Sweden 8,786,492 7,666,563
Ågåsjiegge Sweden - 7,718
Åtvidaberg Sweden 340,491 358,694
Pitkäjärvi Finland 1,659,714 1,641,836
Rääpysjärvi Finland 55,560 148,430
Karhunmäki Finland 170,268 56,089
Luopioinen Finland 4,523 4,257
Emas Finland 27,074 1,663
Shala Kosovo 105,281 -
Mitrovica Kosovo 1,757,837 2,430,150
Viti Kosovo 1,425,425 687,065
14,332,665 13,002,465
Total Group exploration costs of £14,332,665 are currently carried at cost in
the financial statements. Impairment of £8,232 has been recognised during the
period in Ågåsjiegge (2022: £Nil).
Accounting estimates and judgements are continually evaluated and are based on
a number of factors, including expectations of future events that are believed
to be reasonable under the circumstances. Management are required to consider
whether there are events or changes in circumstances that indicate that the
carrying value of this asset may not be recoverable.
The most significant exploration asset within the Group is Kallak. The Company
applied for an Exploitation Concession for Kallak North in April 2013 and this
was finally awarded in March 2022.
Kallak is included in the condensed financial statements as at 30 September
2023 as an intangible exploration licence with a carrying value of £8.79m.
Given the Exploitation Concession was awarded, Management have considered that
there is no current risk associated with Kallak and thus have not impaired the
project.
Other intangible assets As at 30 As at 31 December
September 2022
2023
(Unaudited) (Audited)
£ £
Cost
At 1 January - -
Additions in the period 24,316 -
Foreign exchange movements (105) -
Total 24,211 -
Other intangible assets capitalised are development costs incurred following
the feasibility of GAMP project. This development has attained a stage that it
satisfies the requirements of IAS 38 to be recognised as intangible asset in
that it has the potential to completed and used, provide future economic
benefits, its costs can be measured reliably and there is the intention and
ability to complete. The development costs will be held at cost less
impairment until the completion of the GAMP project at which stage they will
be transferred to the value of the Plant.
7. Borrowings
(Unaudited) (Unaudited)
As at As at
30 September 31
2023 December
2022
£ £
Opening balance 1,845,947 -
Funds advanced - 1,554,381
Finance costs 195,304 304,529
Effect of FX (2,818) (12,963)
Funds repaid (2,038,433) -
- 1,845,947
On 3 July 2022, the Company secured a Bridging loan from Nordic investors of
SEK 22 million (approximately £1.76 million). The Loan had a fixed interest
rate of 1.5 percent per stated 30-day period during the duration. Accrued
interest was compounding. The Loan had a commitment fee of 5 per cent and a
Maturity Date of 28 February 2023.
The Loan was accounted for using an amortised cost using an effective rate of
interest.
It became apparent that due to the timing of the receipt of the funds from the
Rights Issue the Company was not in a position to pay back the bridging loan
facility at its maturity. The outcome of this was that the holder of the loan
enforced the penalty interest for entering another 30-day period, which was
circa 1 million SEK (approx. £82k). The loan principal and interest totalling
£2.04m was repaid via a deduction to the gross proceeds from the Capital
Raise in March 2023.
8. Prior period correction
The correction of £59,209 between non-controlling interest and accumulated
losses is required to remedy an error in the step acquisition movement from
49.4 per cent to 51.4 per cent. There is no impact to the statement of
comprehensive income or any other statement as a result of this correction.
Consolidated statement of Financial Position
(Unaudited) Correction of prior period error (Unaudited and Restated)
As at £ As at
30 September 30 September
2022 2022
£ £
TOTAL ASSETS 15,391,109 - 15,391,109
EQUITY
Shareholders' equity
Share capital 5 8,317,106 - 8,317,106
Share premium 24,689,311 - 24,689,311
Capital contribution reserve 46,451 - 46,451
Share-based payment reserve 6 403,052 - 403,052
Merger reserve 137,700 - 137,700
Translation reserve (1,185,731) (1,185,731)
Accumulated losses (19,658,822) 59,209 (19,599,613)
Total equity 12,749,067 59,209 12,808,276
Non-controlling interests 661,265 (59,209) 602,056
TOTAL EQUITY 13,410,332 - 13,410,332
TOTAL LIABILITIES 1,980,777 - 1,980,777
TOTAL EQUITY AND LIABILITIES 15,391,109 - 15,391,109
9. Post balance sheet events
There have been no significant events since the end of the reporting period
10. Availability of interim report
A copy of these results will be made available for inspection at the Company's
registered office during normal business hours on any weekday. The Company's
registered office is at 207 Temple Chambers, 3-7 Temple Avenue, London, EC4Y
0DT. A copy can also be downloaded from the Company's website at
www.beowulfmining.com. Beowulf Mining plc is registered in England and Wales
with registered number 02330496.
** Ends **
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