REG - Beowulf Mining PLC - Unaudited Results for Period Ended 31 March 2023
31/05/2023 07:00
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RNS Number : 0918B Beowulf Mining PLC 31 May 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.
31 May 2023
Beowulf Mining plc
("Beowulf" or the "Company")
Unaudited Financial Results for the Period Ended 31 March 2023
Beowulf (AIM: BEM; Spotlight: BEO), the mineral exploration and development
company, announces its unaudited financial results for the three months ended
31 March 2023 (the "Quarter").
Activities in the Quarter
Corporate
· On 28 February 2023, Beowulf announced the outcome of the Company's
Capital Raise. In total, Beowulf received approximately SEK 80.8
million (approximately £6.4 million) (gross). The main purpose of the
Capital Raise is to finance the continued development of Kallak North, the
start of Pre-feasibility workstreams, and to progress at pace with the
preparation of an environmental permit application. Net proceeds from the
Capital Raise will also be used to repay bridge loan financing and fund the
advancement of Grafintec and Vardar Minerals Ltd ("Vardar").
Sweden
· In January 2023, Beowulf announced positive economic results from
the Scoping Study (the "Study") for Kallak North. It was initiated last summer
following the award of the Kallak North Exploitation Concession on 22 March
2022. The Study gives confidence in the underlying value of the Kallak North
project, providing appropriate analyses and interpretations to support the
Company's key project decisions and development strategies, optimising the
project development plan while minimising risks.
· The Study incorporates a Mineral Resource Estimate ("MRE") with
effective date of 9 May 2021 and an economic assessment for a mining
operation producing up to 2.7 million tonnes per annum ("Mtpa") of high-grade
iron concentrate over a production life of 14 years. The Study also includes
design considerations to minimise negative environmental and social impacts.
· Jokkmokks Iron's CEO, Ulla Sandborgh, invited different
stakeholders to a workshop regarding solutions for transportation from the
mine. Long-term sustainable transport options are a prerequisite for success
with the green transition. In this context, the upgrading of the Inlandsbanan
- which runs through Jokkmokk - is of central importance for future mining
operations in Kallak and for the region.
· A request for proposal (RFQ) for a Pre-feasibility Study ("PFS")
was sent out and asked for by the 11 May 2023. The technical results from the
PFS will be an important part of the application for the environmental permit.
Finland
· In January 2023, Grafintec awarded a PFS contract to the UK
based RB Plant Construction Ltd. ("RB Plant") to assess the technical,
economic, statutory, regulatory and commercial options for a natural flake
graphite micronisation, spheronisation, purification, and coating plant to be
built in the GigaVaasa industrial area.
· In January 2023, Grafintec was awarded the claim reservation EMAS 1
in the Kronoby and Evijärvi municipalities in the Ostrobothnia region in
Western Finland. The claim reservation covers an area of approximately 26
square kilometres and is valid until December 2024. The claim reservation
gives Grafintec the exclusive right to apply for an Exploration permit within
the reservation area within the period of validation. The area covers highly
prospective ground for nickel, cobalt, lithium, gold, and natural graphite.
· Grafintec has signed a site reservation agreement with the
municipality of Korsholm, securing Plot 1, Block 3017 in the GigaVaasa area,
for the establishment of a Graphite Anode Materials Plant ("GAMP"). The
agreement was signed on 13 February 2023 and the reservation is valid for an
initial six-month period from signing, with the option to extend.
Kosovo
· On 12 January 2023, Beowulf invested £250,000 in Vardar. The
investment increases the Company's ownership in Vardar from 59.5 per cent to
61.1 per cent approximately. This funding will be used to start preparations
for the 2023 exploration programme.
· Assay and IR terraspec results were received from ALS laboratories
in January for drill holes MP015 and MP016. While both holes were unable to
meet the planned target depths due to difficult drilling conditions, MP015
demonstrated that the advanced argillic cap extends further north of the main
Madjan Peak ridge than previously anticipated and high temperature alteration
minerals intersected in the drill hole indicate proximity to a mineralised
source. 3D alteration, structure and lithology models were updated
incorporating both holes.
· Targets for the Mitrovica Project were reviewed with follow-up
exploration programmes designed. In addition, results from geological mapping
completed in December 2022 over the Red Lead Prospect were compiled and new
target drill hole collar positions were identified for future drilling.
· Soil sampling resumed at the Shala Prospect.
· Three soil sampling traverses were completed over the Miocene basin
margin at the Viti project with a view to identifying an anomalous lithium
response associated with the Miocene sedimentary rocks and potentially basin
margin structures.
· All necessary forestry permission permits were obtained for the
next round of drilling at Mitrovica.
Activities - Post Period
· On 3 May 2023, CEO Kurt Budge stepped down from the Company and
ceased to be a director with immediate effect to pursue other business
interests. Kurt Budge has been with the Company for nine years and has been
instrumental in its growth, including the award of the Exploitation Concession
for Kallak North. Kurt Budge was replaced by Johan Röstin who will serve as
Executive Chairman and interim CEO until a permanent successor is appointed.
· On 18 April 2023, Grafintec signed a Memorandum of Understanding
with Thermal & Material Engineering Centre ("TMEC") from Ukraine to
establish a joint venture technology company. TMEC has developed proprietary
state-of-the-art purification technology, a continuous thermal process which
consumes significantly less energy than conventional commercially available
thermal solutions and eliminates the need of hazardous chemicals when
purifying graphite. Grafintec and TMEC are seeking to apply the technology to
both natural flake and secondary sources of graphite, in conjunction with
Grafintec's development of the GAMP in the GigaVaasa industrial area.
· The first stage of process design work for the GAMP being
undertaken by RB Plant has progressed well and will be concluded in May 2023.
· Grafintec has advanced the discussions with the municipality of
Korsholm to extend the site reservation for Plot 1, Block 3017 in the
GigaVaasa industrial area before the current reservation expires end of July
2023.
· Grafintec has initiated and desktop study to review historical
exploration data for the EMAS 1 claim reservation with the aim to get better
understanding of the geological settings in the area and prospectivity for
nickel, cobalt, lithium, gold, and natural graphite mineralisation.
ESG
· A second meeting regarding reindeer herding was held on the 27
March 2023. All three Sami villages involved in the appeal participated in the
meeting.
· Hydrogeological investigations have been carried out in the area
around Kallak. The investigations shall ensure that the planned mining
operations can be carried out within the requirements and limit values that
apply to protect, among other things, the environment. The investigations
included drilling several wells in both soil and rock and sampling water in
existing wells. As part of the investigation, a groundwater model has also
been developed.
· Environmental baseline studies are on-going in the area around
Kallak. Biological investigations with inventory of nature values continues
until the autumn. The work to monitor background noise and air quality has
also started. The studies will be used for further planning and impact
assessments.
· Environmental baseline studies are on-going in the Aitolampi and
Rääpysjärvi natural graphite exploration projects. The work includes
baseline water quality monitoring at Aitolampi, using EHP-QMS monitoring
stations to enable 24/7 monitoring of pH and conductivity of surface water,
ground water levels, as well as precipitation, wind direction and air
temperature data. Surface water samples for chemical analysis are also being
collected at different locations at both Aitolampi and Rääpysjärvi.
Financial
· The underlying administration expenses of £593,795 exceeded the
previous year of £334,734. This increase is due to share-based payment
expenses of £80,723 (Q1 2022: £Nil), professional fees of £175,973 (Q1:
£79,716), Director Salaries of £92,477 (Q1 £63,176) and a foreign currency
loss of £58,817 (Q1: £32,372).
· The consolidated loss before tax increased in the quarter to
£764,057 (Q1 2022: £318,007). This increase is primarily due to expenses
outlined in the preceding point combined with finance costs in relation to the
bridging loan of £195,304 (Q1 2022: £Nil).
· Consolidated basic and diluted loss per share for the quarter ended
31 March 2023 was 0.09 pence (Q1 2022: loss of 0.04 pence).
· The Company raised SEK 80.8 million (approximately £6.4 million)
before expenses as part of the Capital Raise, 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).
· £4,337,137 in cash was held at 31 March 2023 (31 March 2022:
£2,884,642).
· Exploration assets increased to £13,517,973 at 31 March 2023
compared to £11,288,995 at 31 March 2022.
· The cumulative translation losses held in equity increased by
£136,587 in the quarter ended 31 March 2023 to £1,426,002 (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 31 March 2023, there were 889,582,231 Swedish Depository
Receipts representing 76.87 per cent of the issued share capital of the
Company. The remaining issued share capital of the Company is held in the UK.
Johan Röstin, Acting Chief Executive Officer of Beowulf, comments:
"As Acting CEO of Beowulf Mining, an immediate focus is to actively look to
strengthen the Board and Executive team. We are also currently reassessing our
timelines for advancing our projects and look forward to a busy schedule
ahead. In the short term, we will ensure the continuing advancement of the
Company's key projects, Kallak, Mitrovica, and GigaVaasa.
"I am looking to drive the Company forward in alignment with its strategy of
being a responsible and innovative company that creates value for our
shareholders, wider society and the environment through its diversified asset
portfolio by commodity, geography and the development stage of its various
projects."
Enquiries:
Beowulf Mining plc
Johan Rostin, Interim 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
31 March 2023, was 76.87 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 THREE MONTHS TO 31 MARCH 2023
Notes (Unaudited) (Unaudited) (Unaudited)
3 months ended 31 March 3 months ended 31 March 12 months ended 31 December 2022
2023 2022
£
£ £
Continuing operations
Administrative expenses (593,735) (334,734) (1,806,582)
Impairment of exploration assets - - (36,988)
Operating loss (593,735) (334,734) (1,843,570)
Gain on disposal of investment - - 21,951
Finance costs 3 (195,536) (65) (304,806)
Finance income 458 6 176
Grant income 24,756 16,786 84,797
Loss before and after taxation (764,057) (318,007) (2,041,452)
Loss attributable to:
Owners of the parent (743,435) (292,943) (1,948,459)
Non-controlling interests (20,622) (25,064) (92,993)
(764,057) (318,007) (2,041,452)
Loss per share attributable to the owners of the parent:
Basic and diluted (pence) 4 (0.09) (0.04) (0.23)
BEOWULF MINING PLC
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE LOSS
FOR THE THREE MONTHS TO 31 MARCH 2023
(Unaudited) (Unaudited) (Unaudited)
3 months ended 3 months ended 12 months
31 March 31 March ended
2023 2022 31 December 2022
£ £ £
Loss for the period/year (764,057) (318,007) (2,041,452)
Other comprehensive loss
Items that may be reclassified subsequently to profit or loss:
Exchange losses arising on translation of foreign operations (144,847) (47,965) (32,945)
Total comprehensive loss (908,904) (365,972) (2,074,397)
Total comprehensive loss attributable to:
Owners of the parent (880,022) (342,750) (2,020,889)
Non-controlling interests (28,882) (23,222) (53,508)
(908,904) (365,972) (2,074,397)
BEOWULF MINING PLC
CONDENSED COMPANY STATEMENT OF COMPREHENSIVE LOSS
FOR THE THREE MONTHS TO 31 MARCH 2023
Notes (Unaudited) (Unaudited) (Unaudited)
3 months ended 3 months ended 12 months ended
31 March 31 March 31 December 2022
2023 2022
£
£ £
Continuing operations
Administrative expenses (405,557) (225,913) (1,090,254)
Operating loss (405,557) (225,913) (1,090,254)
Gain on disposal of investments - - 21,951
Finance costs 3 (195,304) - (304,529)
Finance income 424 6 170
Loss before and after taxation and total comprehensive loss (600,437) (225,907) (1,372,662)
Loss per share attributable to the owners of the parent:
Basic and diluted 4 (0.07) (0.03) (0.17)
(pence)
BEOWULF MINING PLC
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2023
(Unaudited) (Unaudited) (Unaudited)
As at As at As at
31 March 31 March 31 December
2023 2022 2022
£ £ £
ASSETS Notes
Non-current assets
Intangible assets 7 13,517,973 11,288,995 13,002,465
Property, plant and equipment 122,533 119,968 129,715
Loans and other financial assets 5,158 5,230 5,181
Right of use asset 14,950 6,033 19,279
13,660,614 11,420,226 13,156,640
Current assets
Trade and other receivables 223,467 179,725 220,427
Cash and cash equivalents 4,337,137 2,884,642 1,776,556
4,560,604 3,064,367 1,996,983
TOTAL ASSETS 18,221,218 14,484,593 15,153,623
EQUITY
Shareholders' equity
Share capital 5 11,571,875 8,317,106 8,317,106
Share premium 27,183,685 24,689,311 24,689,311
Capital contribution reserve 46,451 46,451 46,451
Share-based payment reserve 596,821 668,482 516,098
Merger reserve 137,700 137,700 137,700
Translation reserve (1,426,002) (1,266,792) (1,289,415)
Accumulated losses (21,114,990) (19,060,819) (20,323,414)
Total equity 16,995,540 13,531,439 12,093,837
Non-controlling interests 587,991 599,018 568,732
TOTAL EQUITY 17,583,531 14,130,457 12,662,569
LIABILITIES
Current liabilities
Trade and other payables 622,599 308,244 625,730
Deferred income - 39,759 -
Lease liability 8,884 6,133 10,840
Borrowings 8 - - 1,845,947
631,483 354,136 2,482,517
Non-current liabilities
Lease liability 6,204 - 8,537
6,204 - 8,537
TOTAL LIABILITIES 637,687 354,136 2,491,054
TOTAL EQUITY AND LIABILITIES 18,221,218 14,484,593 15,153,623
BEOWULF MINING PLC
CONDENSED COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2023
(Unaudited) (Unaudited) (Unaudited)
As at As at As at
31 March 31 March 31 December 2022
2023 2022 £
£ £
ASSETS Notes
Non-current assets
Investments 3,931,165 3,577,988 3,645,181
Loans and other financial assets 11,674,430 10,205,707 11,084,289
Property, plant and equipment 782 1,043 834
15,606,377 13,784,738 14,730,304
Current assets
Trade and other receivables 57,560 37,020 53,284
Cash and cash equivalents 4,044,888 2,598,356 1,667,840
4,102,448 2,635,376 1,721,124
TOTAL ASSETS 19,708,825 16,420,114 16,451,428
EQUITY
Shareholders' equity
Share capital 5 11,571,875 8,317,106 8,317,106
Share premium 27,183,685 24,689,311 24,689,311
Capital contribution reserve 46,451 46,451 46,451
Share-based payment reserve 596,821 668,482 516,098
Merger reserve 137,700 137,700 137,700
Accumulated losses (19,917,892) (18,563,621) (19,317,455)
TOTAL EQUITY 19,618,640 15,295,429 14,389,211
LIABILITIES
Current liabilities
Trade and other payables 90,185 1,084,926 216,270
Deferred income - 39,759 -
Borrowings 8 - - 1,845,947
TOTAL LIABILITIES 90,185 1,124,685 2,062,217
TOTAL EQUITY AND LIABILITIES 19,708,825 16,420,114 16,451,428
BEOWULF MINING PLC
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE THREE MONTHS TO 31 MARCH 2023
Share capital Share premium Capital contribution reserve Share-based payment reserve Merger reserve Translation reserve Accumulated losses Total Non- Total equity
controlling
interest
£ £ £ £ £ £ £ £ £ £
8,317,106 24,689,311 46,451 668,482 137,700 (1,216,985) (18,470,675) 14,171,390 325,039 14,496,429
At 1 January 2022
Loss for the period - - - - - - (292,943) (292,943) (25,064) (318,007)
Foreign exchange translation - - - - - (49,807) - (49,807) 1,842 (47,965)
Total comprehensive loss - - - - - (49,807) (292,943) (342,750) (23,222) (365,972)
Transactions with owners
Step acquisition of subsidiary - - - - - - (297,201) (297,201) 297,201 -
8,317,106 24,689,311 46,451 668,482 137,700 (1,266,792) (19,060,819) 13,531,439 599,018 14,130,457
At 31 March 2022 (Unaudited)
Loss for the period - - - - - (1,655,516) (1,655,516) (67,929) (1,723,445)
Foreign exchange translation - - - - - (22,623) - (22,623) 37,643 15,020
Total comprehensive loss - - - - - (22,623) (1,655,516) (1,678,139) (30,286) (1,708,425)
Transactions with owners
Equity-settled share-based payment transactions - - - 240,537 - - - 240,537 - 240,537
Transfer of reserve on lapse of options - - (392,921) - - 392,921 - - -
At 31 December 2022 (Unaudited) 8,317,106 24,689,311 46,451 516,098 137,700 (1,289,415) (20,323,414) 12,093,837 568,732 12,662,569
Loss for the period - - - - - - (743,435) (743,435) (20,622) (764,057)
Foreign exchange translation - - - - - (136,587) - (136,587) (8,260) (144,847)
Total comprehensive loss - - - - - (136,587) (743,435) (880,022) (28,882) (908,904)
Transactions with owners
Issue of share capital 3,254,769 3,654,829 - - - - - 6,909,598 - 6,909,598
Cost of issue - (1,160,455) - - - - - (1,160,455) - (1,160,455)
Equity-settled share-based payment transactions - - - 80,723 - - - 80,723 - 80,723
Step up interest in subsidiary - - - - - - (48,141) (48,141) 48,141 -
At 31 March 2023 (Unaudited) 11,571,875 27,183,685 46,451 596,821 137,700 (1,426,002) (21,114,990) 16,995,540 587,991 17,583,531
BEOWULF MINING PLC
CONDENSED COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE THREE MONTHS TO 31 MARCH 2023
Share capital Share premium Capital contribution reserve Share-based payment reserve Merger reserve Accumulated losses Total
£ £ £ £ £ £ £
8,317,106 24,689,311 46,451 668,482 137,700 (18,337,714) 15,521,336
At 1 January 2022
Loss for the period - - - - - (225,907) (225,907)
Total comprehensive loss - - - - - (225,907) (225,907)
8,317,106 24,689,311 46,451 668,482 137,700 (18,563,621) 15,295,429
At 31 March 2022 (Unaudited)
Loss for the period - - - - - (1,146,755) (1,146,755)
Total comprehensive loss - - - - - (1,146,755) (1,146,755)
Transactions with owners
Equity-settled share-based payment transactions - - - 240,537 - - 240,537
Transfer of reserve on lapse of option - - - (392,921) - 392,921 -
At 31 December 2022 (Unaudited) 8,317,106 24,689,311 46,451 516,098 137,700 (19,317,455) 14,389,211
Loss for the period - - - - - (600,437) (600,437)
Total comprehensive loss - - - - - (600,437) (600,437)
Transactions with owners
Issue of share capital 3,254,769 3,654,829 - - - - 6,909,598
Cost of issue - (1,160,455) - - - - (1,160,455)
Equity-settled share-based payment transactions - - - 80,723 - - 80,723
11,571,875 27,183,685 46,451 596,821 137,700 (19,917,892) 19,618,640
At 31 March 2023 (Unaudited)
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED INTERIM
FOR THE THREE MONTHS TO 31 MARCH 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 2021 except as noted
below.
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 quarter ended 31 March 2023 is unaudited and has
not been reviewed by the auditors.
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.
In the period, the Group have completed the Rights Issue raising SEK 62.8
million (approximately £5 million) before expenses and the PrimaryBid Offer
and Placing raising an aggregate of £1.4 million before expenses. As a
result, the underwriting commitments were not activated.
During the period, it became apparent that due to the timing of the receipt of
the funds from the Rights Issue the Company will not be in a position to pay
back the bridging loan facility at its maturity. The outcome of this is that
the holder of the loan enforced the penalty interest for entering another
30-day period, which was circa 1 million SEK. The loan principal and interest
totalling £2.13m was repaid via a deduction to the gross proceeds from the
Rights Issue.
The net funds raised after the loan repayment and share issue transaction
costs are £3.72 million.
Management prepared cash flow forecasts which indicate that although there is
no immediate funding requirement, the Group would need to raise further funds
in 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. Finance costs
(Unaudited) (Unaudited) (Unaudited)
3 months 3 months 12 months
ended ended ended
Group 31 March 2023 31 March 2022 31 December 2022
£ £ £
Bridging loan amortised interest 195,304 - 304,529
Lease liability interest 232 65 267
Other interest paid - - 10
195,536 65 304,806
(Unaudited) (Unaudited) (Unaudited)
3 months 3 months 12 months
ended ended ended
Parent 31 March 2023 31 March 2022 31 December 2022
£ £ £
Bridging loan amortised interest 195,304 - 304,529
195,304 - 304,529
4. Loss per share
(Unaudited) (Unaudited) (Unaudited)
3 months 3 months 12 months
ended ended ended
Group 31 March 2023 31 March 31 December 2022
2022
Loss for the period/year attributable to shareholders of the Company (£'s) (743,435) (296,703) (1,948,459)
Weighted average number of ordinary shares 864,624,023 831,710,636 831,710,636
Loss per share (p) (0.09) (0.04) (0.23)
Parent
Loss for the period/year attributable to shareholders of the Company (£'s) (600,437) (210,264) (1,372,662)
Weighted average number of ordinary shares 864,624,023 831,710,636 831,710,636
Loss per share (p) (0.07) (0.03) (0.17)
5. Share Capital
(Unaudited) (Unaudited) (Unaudited)
As at As at As at
31 March 31 March 2022 31 December 2022
2023
£ £ £
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 31 March 2022 831,710,636
Issued during the period -
Balance at 31 December 2022 831,710,636
Issued during the period 325,476,900
Balance at 31 March 2023 1,157,187,527
6. Share based payments
During the period, Nil options were granted (Q1 2022: Nil; year ended 31
December 2022: 23,250,000). The options outstanding as at 31 March 2023 have
an exercise price in the range of 1.00 pence to 7.35 pence (31 December 2022:
1.00 pence to 7.35 pence) and a weighted average remaining contractual life of
7 years, 8 days (31 December 2022: 7 years, 98 days).
The share-based payment expense for the options for the period ended 31 March
2023 was £80,723 (Q1 2022: £Nil; year ended 31 December 2022: £240,537).
The fair value of share options granted and outstanding were measured using
the Black-Scholes model, with the following inputs:
2022 2019
Number of options 20,750,000 2,500,000 9,250,000
Fair value at grant date 3.12p 3.59p 1.15p
Share price 4.00p 4.00p 5.65p
Exercise price 5.25p 1.00p 7.35p
Expected volatility 100% 100% 51.89%
Option life 10 years 10 years 5 years
Risk free interest rate 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 2022 and 31 March 2022 13,750,000 0.089
Granted during the period 23,250,000 0.048
Lapsed during the period (4,500,000) 0.120
Outstanding at 31 December 2022 and 31 March 2023 32,500,000 0.055
Exercisable at 31 December 2022 and 31 March 2023 11,750,000 0.060
No warrants were granted during the period (2022: Nil).
7. Intangible Assets: Group
Exploration costs (Unaudited) (Unaudited)
As at As at
31 March 31 December
2023 2022
£ £
Cost
Opening balance 13,002,465 11,235,656
Additions for the year 666,073 1,850,946
Foreign exchange movements (150,565) (47,149)
Impairment - (36,988)
Closing balance 13,517,973 13,002,465
The net book value of exploration costs is comprised of expenditure on the
following projects:
(Unaudited) (Unaudited)
As at As at
31 March 31 December
2023 2022
£ £
Project Country
Kallak Sweden 8,082,222 7,666,563
Åtvidaberg Sweden 360,789 358,694
Ågåsjiegge Sweden 7,605 7,718
Pitkäjärvi Finland 1,664,922 1,641,836
Karhunmäki Finland 56,063 56,089
Rääpysjärvi Finland 150,417 148,430
Luopioinen Finland 4,370 4,257
Emas Finland 8,488 1,663
Mitrovica Kosovo 2,498,463 2,430,150
Viti Kosovo 684,634 687,065
13,517,973 13,002,465
Total Group exploration costs of £13,517,973 are currently carried at cost in
the financial statements. No impairment has been recognised during the period
(2022: £36,988).
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
originally applied for the Exploitation Concession in April 2013 and
throughout 2017, management have actively sought to progress the application,
engaging with the various government bodies and other stakeholders. The
Exploitation Concession was finally awarded in March 2022.
Kallak is included in the condensed financial statements as at 31 March 2023
as an intangible exploration licence with a carrying value of £8,082,222.
Given the Exploitation Concession was awarded, Management have considered
there is no current risk associated with Kallak and thus have not impaired the
project.
8. Borrowings
(Unaudited) (Unaudited)
As at As at
31 March 31 December
2023 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 has a fixed interest
rate of 1.5 percent per stated 30-day period during the duration. Accrued
interest was compounding. The Loan has 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.
In the period end, it became apparent that due to the timing of the receipt of
the funds from the Rights Issue the Company will not be in a position to pay
back the bridging loan facility at its maturity. The outcome of this is that
the holder of the loan enforced the penalty interest for entering another
30-day period, which was circa 1 million SEK. The loan principal and interest
totalling £2.04m was repaid via a deduction to the gross proceeds from the
Capital Raise during the period.
9. Post balance sheet events
On 3 May 2023, Mr Kurt Budge resigned as Chief Executive Officer ("CEO") and
director of the Plc and its subsidiaries. Mr Johan Röstin assumed the role of
Executive Chairman and acting CEO on the same date.
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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