REG - Beowulf Mining PLC - Unaudited Results Ended 30 September 2022
18/11/2022 07:00
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RNS Number : 8376G Beowulf Mining PLC 18 November 2022
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18 November 2022
Beowulf Mining plc
("Beowulf" or the "Company")
Unaudited Financial Results for the Period Ended 30 September 2022
Beowulf (AIM: BEM; Spotlight: BEO), the mineral exploration and development
company, announces its unaudited financial results for the nine months ended
30 September 2022 (the "Quarter").
Highlights of Activities in the Quarter
· On 4 July 2022, the Company agreed a loan financing from a Nordic
Institutional Investor of SEK 22 million.
· On 8 July 2022, Beowulf announced that the Board had agreed to
put in place a Long-Term Incentive Plan ("LTIP") for executive and senior
management.
· On 22 August 2022, the Company announced the discovery of a large
Polymetallic Epithermal System (copper, gold and lead-zinc) at Majdan Peak
("MP"), part of Vardar's Mitrovica licence in Kosovo, with drilling results
both supporting the potential for epithermal mineralisation of economic grades
to be present and for comparisons to be drawn with the Chelopech copper-gold
deposit in Bulgaria.
· On 25 August 2022, Beowulf notified that the Memorandum of
Understanding ("MoU") signed between its wholly owned Finnish subsidiary
Grafintec Oy ("Grafintec") and Epsilon Advanced Materials Private Limited had
been terminated.
· On 8 September 2022, additional analysis of drilling and
exploration activities in and around Majdan Peak South ("MPS") produced new
exploration targets.
· On 26 September 2022, Grafintec signed a new MoU with Qingdao
Hensen Graphite Ltd ("Hensen"), which includes an agreed framework and key
terms on which both companies are collaborating with regards to establishing
an anode materials hub in Vaasa, Finland.
Post Period
· On 7 October 2022, the Company announced the results from the
electromagnetic ("EM") survey and assays for Grafintec's Rääpysjärvi flake
graphite prospect. The EM survey indicated extensive EM anomalies, significant
potential for a larger tonnage of high-grade graphite mineralisation than that
defined at Aitolampi and for localised very high-grade mineralisation.
· On 7 November 2022, Johan Röstin was appointed as Non-Executive
Chairman of the Company following Sven Otto Littorin's resignation. Johan was
previously CEO of ferry operator, ForSea, from 2017-2020, and CEO of
Copenhagen Malmo Port AB, from 2009-2017.
· On 16 November 2022, Jokkmokk Iron provided a progress update for
workstreams associated with Kallak, the Scoping Study and Environmental Permit
application.
Kurt Budge, Chief Executive Officer of Beowulf, commented:
"Since the last quarterly update, we have seen substantial progress by the
Company, we raised finance, Ulla Sandborgh took charge of the Kallak project,
we made a discovery in Kosovo, we strengthened our positioning in the anode
space in Finland, with a new and established partner, Hensen, to help us
achieve our downstream ambitions, and Johan Röstin joined the Company as
Chairman.
"The discovery of the large polymetallic epithermal system at Majdan Peak was
an exciting find and represents a fantastic opportunity for Beowulf,
warranting further exploration. The Majdan Peak South intersections also add
to the significant potential of the Mitrovica licence, and it speaks volumes
about the Vardar team, their discovery, and their exploration capabilities.
"The advancements made with Grafintec's portfolio, especially the new MoU
signed with Hensen, and exploration findings at Rääpysjärvi, are very
encouraging. Beowulf and Hensen first established contact in 2015 and I am
delighted that we have joined forces to work on the GigaVaasa project,
combining Hensen's 37 years of knowledge and experience in the graphite
industry, and almost 20 years in the anode market, with Grafintec's strong
position in the anode space of the Finnish battery cluster, and the Company's
natural flake graphite resources, which represent a potential secure and
sustainable supply of raw materials for Finland to achieve its
self-sufficiency ambitions in battery raw materials.
"Finally, I am looking forward to working with our new Chairman. Johan's
knowledge and experience will be of significant benefit to the Company and
support for Ulla, as the Company progresses with project development studies,
permitting, and attracting finance for the Kallak project, positioning Kallak
as a future source of secure and sustainably produced high-grade iron ore for
fossil-free steelmakers in the Nordic region."
Financials
· The consolidated loss in the year to date before tax increased
from Q3 2021 at £438,961 to Q3 2022 of £593,178. This is primarily due to
the share-based payment expense of £127,491 and finance cost £146,120
attributable to the bridging loan.
· The underlying consolidated administrative costs of £1,073,324
for the nine months ended 30 September 2022 decreased by £45,626 compared to
the comparative period (2021: £1,118,950). The overall decrease in costs is
attributable to a decrease in the FX loss of £145,859 and no options gain
expense of £103,281 being incurred in the current period. This decrease has
been largely offset through an increased spend on downstream processing costs
of £123,114 and an increase in professional fees of £81,861.
· Consolidated basic and diluted loss per share for the period
ended 30 September 2022 was 0.07 pence (Q3 2021: loss of 0.05 pence).
· £2,758,152 in cash held at the period end (Q3 2021:
£3,883,749).
· The cumulative translation losses held in equity attributable to
the holders of the Parent decreased by £31,254 in the period ended 30
September 2022 to £1,185,731 (30 September 2021: loss of £454,474). This
movement is primarily attributable to strengthening of the Euro since 31
December 2021.
· As at 30 September 2022, there are 632,393,876 Swedish Depository
Receipts issued representing 76.04 per cent of the issued share capital of the
Company. The remaining issued share capital of the Company is held in the UK.
Operational
Sweden
· On 16 November 2022, Jokkmokk Iron provided a progress update for
workstreams associated with Kallak, the Scoping Study and Environmental Permit
application.
· Kallak North Scoping Study is on schedule to be completed this
quarter, Q4 2022. The Scoping Study includes analysis of options and
trade-offs for different aspects of the project, for delivering on 'Net Zero'
ambitions and developing a sustainable mine.
· In support of the Scoping Study, the Company has engaged Vulcan
Technologies Pty Ltd ("Vulcantech"), an Australian company, to complete a
Marketing Study to consider traditional and non-traditional market
opportunities that might be served by Kallak concentrates. Vulcantech
specialises in the modelling of iron and steel making processes.
· Workstreams associated with the Environmental Permit application
are progressing, including updating investigations regarding nature values,
water management and options for transporting production from the mine.
· Consultations regarding reindeer herding have started and broader
information meetings with the public are being planned.
Finland
· Beowulf announced, on 26 September 2022, that Grafintec had
entered a partnership with Hensen, a company that has been operating in the
graphite industry for 37 years and has been producing graphite-based anode
materials since 2003. This partnership will provide an integrated solution for
production and supply of battery anode material.
· The Company also reaffirmed Grafintec's strategy and its ambition
to create a sustainable value chain in Finland from high-quality natural flake
graphite resources to downstream anode material production. As part of this,
Grafintec continues to develop the Aitolampi project, its most advanced
natural flake graphite project, as an option for providing security of supply
in the longer term of high-grade concentrate.
· At the start of October, results of an EM survey at the
Rääpysjärvi flake graphite prospect were released. When comparing the
results with the Aitolampi project, the EM conductive anomalies are more
extensive, and indicate significant potential for a larger tonnage of graphite
mineralisation.
· Additionally, a >50 per cent total graphitic carbon ("TGC")
assay from a historic graphite quarry at Rääpysjärvi indicates the
potential for localised high-grade mineralisation. Highlights of the
exploration results include:
o 13 highly conductive EM zones have been identified, with isolated zones
extending for up to 850 metres ("m") strike length and 250m width.
o Analysis of eight grab samples from outcrops in the area range from 0.52
to >50 per cent TGC. The sample assaying more than 50 per cent TGC (limit
of the analysing methodology) was taken from a historic graphite quarry
situated close to the north-western limit of one of the largest EM conductive
zones.
o Six holes drilled in the 1980s have also been re-sampled and re-assayed
for TGC. Two of the drill holes intersected significant graphite
mineralisation:
o TN/SM-2: 19.29m at 5.62 per cent TGC (from 177.11m); and
o TN/SM-3: 9.84m at 6.70 per cent TGC (from 226.16m) and 35.55m at 4.98 per
cent TGC (from 266.45m).
o Previous metallurgical testwork on a 10kg composite grab sample has
produced a concentrate grade of 97.4 per cent TGC.
Kosovo
· Since Beowulf's investment in Vardar in November 2018, Vardar has
prioritised exploration and discovery in the Tethyan Belt, based in Kosovo. On
22 August, Vardar delivered exciting exploration results for Majdan Peak
within the Mitrovica licence, discovering a significant polymetallic
epithermal system containing deposits of copper, gold and lead-zinc at shallow
depths, warranting further exploration and analysis.
· The exploration programme consisted of 11 widely spaced diamond
drillholes covering an area 1,400m by 700m. All drillholes intersected
abundant sulphides, intense alteration, and multiple generations of veining
which are all factors indicative of a large polymetallic epithermal system.
Significant gold-copper-silver, lead-zinc-silver and gold intersections
include:
o Drillhole MP006: 10.8m at 0.48 grammes per tonne ("g/t") gold ("Au"), 0.1
per cent copper ("Cu") and 18 g/t silver ("Ag"), including 3.2m at 1.1 g/t Au,
0.2 per cent Cu and 50 g/t Ag;
o Drillhole MP006: 6.8m at 4.1 per cent lead ("Pb"), 0.6 per cent zinc
("Zn") and 15 g/t Ag; and
o Drillhole MP013: 16.1m at 0.21 g/t Au.
· Following this, on 8 September, the Company announced additional
analysis of drilling and exploration activities in and around the Majdan Peak
south ("MPS") area. This analysis generated additional exploration targets
effectively increasing the significant district potential. The additional
targets include Gold Ridge and Red Lead.
· The main objective of exploration is to discover an economic
deposit of base and precious metals, and recent drilling has shown this
potential. Drilling at MPS intercepted several noteworthy precious metals
intersections, including:
o Drillhole MP002: 8.8 m at 0.34 g/t Au, including 0.9m at 1.52 g/t Au and
20 g/t Ag; and
o Drillhole MP003: 36.4m at 19 g/t Ag, 0.5 per cent Pb and 0.2 per cent Zn,
including:
o 1.5m at 128 g/t Ag, 0.35 per cent Cu, 1.5 per cent Pb and 0.3 per cent Zn;
o 1.1m at 71 g/t Ag, 0.1 per cent Cu, 0.7 per cent Pb and 0.3 per cent Zn;
o 1.0m at 50 g/t Ag, 0.2 per cent Cu, 0.5 per cent Pb and 0.3 per cent Zn;
o 4.8m at 44 g/t Ag and 0.7 per cent Pb; and
o 1.1m at 46 g/t Ag, 2.7 per cent Pb and 0.6 per cent Zn.
Corporate
· On 4 July, the Company agreed to loan financing from a Nordic
Institutional Investor of SEK 22 million (approximately £1.76 million), to be
used to advance the Company's projects and achieve key milestones, with the
focus on Kallak.
· During the period, the Board approved the implementation of a
LTIP for senior and executive management and other eligible employees; the
grant of share awards in the form of share options at the discretion of the
Company's Remuneration Committee. The Remuneration Committee may determine
the specific vesting conditions of individual awards, including vesting
period, strike price, expiry date and any performance conditions as it
determines reasonable. Total number of options under award will not exceed
10 per cent of the Company's issued ordinary share capital.
· Post period, Beowulf appointed a new Non-Executive Chairman,
Johan Röstin. Johan has significant experience in infrastructure, logistics,
capital investments and permitting processes, and has held Board, executive
and senior management positions during his career. In his role at ForSea, Mr
Röstin led the company to create a new brand, a stronger organisation and set
the company on its sustainability journey.
Enquiries:
Beowulf Mining plc
Kurt Budge, 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 2022, was 76.04 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 needed for the transition to a
Green Economy.
The Company has an attractive portfolio of assets, including commodities such
as iron ore, graphite, base and precious 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, 389 million
tonnes of iron mineralisation has been estimated, a potential source of high
quality iron ore for fossil-free steel making in the Nordic region for decades
to come.
In Finland, Grafintec (previously Fennoscandian Resources), a wholly-owned
subsidiary, is developing a resource footprint of natural flake graphite and
the capability to serve the anode manufacturing. Grafintec is working to
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 59.5 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.
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 2022
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 2021
2022 2021 2022 2021
£
£ £ £ £
Continuing operations
Administrative expenses (338,378) (400,657) (1,073,324) (1,118,950) (1,503,049)
Share-based payment expense (127,491) - (127,491) - -
Impairment of property, plant and equipment - (48,966) - (48,966) (48,966)
Operating loss (465,869) (449,623) (1,200,815) (1,167,916) (1,552,015)
Finance costs (146,120) (91) (146,237) (179) (256)
Finance income 19 12 49 59 71
Grant income 18,792 10,741 70,218 14,204 66,589
Loss before and after taxation (593,178) (438,961) (1,276,785) (1,153,832) (1,485,611)
Loss attributable to:
Owners of the parent (579,997) (386,637) (1,224,658) (1,054,485) (1,351,179)
Non-controlling interests (13,181) (52,324) (52,127) (99,347) (134,432)
(593,178) (438,961) (1,276,785) (1,153,832) (1,485,611)
Loss per share attributable to the owners of the parent:
Basic and diluted 3 (0.07) (0.05) (0.15) (0.13) (0.16)
(pence)
BEOWULF MINING PLC
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE LOSS
FOR THE NINE MONTHS TO 30 SEPTEMBER 2022
(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 2021
2022 2021 2022 2021
£
£ £ £ £
Loss for the period/year (593,178) (438,961) (1,276,785) (1,153,831) (1,485,611)
Other comprehensive (loss)/income
Items that may be reclassified subsequently to profit or loss:
Exchange gain/(losses) arising on translation of foreign operations 118,105 28,869 63,197 (474,602) (794,368)
Total comprehensive loss (475,073) (410,092) (1,213,588) (1,628,433) (2,279,979)
Total comprehensive loss attributable to:
Owners of the parent (477,478) (310,291) (1,193,404) (1,508,950) (2,110,892)
Non-controlling interests 2,405 (99,801) (20,184) (119,483) (169,087)
(475,073) (410,092) (1,213,588) (1,628,433) (2,279,979)
BEOWULF MINING PLC
CONDENSED COMPANY STATEMENT OF COMPREHENSIVE INCOME
FOR THE NINE MONTHS TO 30 SEPTEMBER 2022
Notes (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited)
3 months ended 30 September2022 3 months ended 30 September 9 months ended 30 September 9 months ended 30 September 12 months ended 31 December 2021
2021 2022 2021
£ £
£ £ £
Continuing operations
Administrative expenses (227,030) (336,231) (725,736) (1,023,093) (1,233,369)
Share-based payment expense (110,693) - (110,693) - -
Operating loss (337,723) (336,231) (836,429) (1,023,093) (1,233,369)
Finance cost (146,080) - (146,080) -
Finance income 18 12 48 59 71
Loss before and after taxation and total comprehensive loss (483,785) (336,219) (982,461) (1,023,034) (1,233,298)
Loss per share attributable to the owners of the parent:
Basic and diluted 3 (0.06) (0.04) (0.12) (0.12) (0.15)
(pence)
BEOWULF MINING PLC
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 SEPTEMBER 2022
(Unaudited) (Unaudited) (Audited)
As at As at As at
30 September 30 September 31
2022 2021 December
£ £ 2021
£
ASSETS Notes
Non-current assets
Intangible assets 4 12,355,983 11,295,921 11,235,656
Property, plant and equipment 118,269 66,116 133,428
Loans and other financial
assets 5,218 5,340 5,247
Right of use asset 3,386 8,986 7,401
12,482,856 11,376,363 11,381,732
Current assets
Trade and other receivables 150,101 183,641 183,139
Cash and cash equivalents 2,758,152 3,883,749 3,336,134
2,908,253 4,067,390 3,519,273
TOTAL ASSETS 15,391,109 15,443,753 14,901,005
EQUITY
Shareholders' equity
Share capital 3 8,317,105 8,317,105 8,317,105
Share premium 24,689,311 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 403,052 732,185 668,482
Translation reserve (1,185,731) (911,746) (1,216,985)
Accumulated losses (19,658,821) (18,237,683) (18,470,674)
12,749,067 14,773,323 14,171,390
Non-controlling interests 661,265 374,650 325,039
TOTAL EQUITY 13,410,332 15,147,973 14,496,429
LIABILITIES
Current liabilities
Trade and other payables 260,497 216,867 357,236
Grant income - 69,860 39,849
Lease Liability 3,475 9,053 7,491
Borrowings 6 1,716,805 - -
TOTAL LIABILITIES 1,980,777 295,780 404,576
TOTAL EQUITY AND LIABILITIES 15,391,109 15,443,753 14,901,005
BEOWULF MINING PLC
CONDENSED COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 30 SEPTEMBER 2022
(Unaudited) (Unaudited) (Audited)
As at 30 September As at 30 September As at 31
2022 2021 December
£ £ 2021
£
ASSETS Notes
Non-current assets
Investments 3,594,786 2,377,988 2,377,988
Loans and other financial assets 10,502,521 10,044,632 10,179,650
Property, plant and equipment 904 1,205 1,112
14,098,211 12,423,825 12,558,750
Current assets
Trade and other receivables 24,664 22,775 41,185
Cash and cash equivalents 2,395,871 3,451,549 3,075,741
2,420,535 3,474,324 3,116,926
TOTAL ASSETS 16,518,746 15,898,149 15,675,676
EQUITY
Shareholders' equity
Share capital 8,317,105 8,317,105 8,317,105
Share premium 24,689,311 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 403,052 732,185 668,482
Accumulated losses (18,927,253) (18,191,153) (18,337,713)
TOTAL EQUITY 14,666,366 15,731,599 15,521,336
LIABILITIES
Current liabilities
Trade and other payables 135,575 96,690 114,491
Grant income - 69,860 39,849
Borrowings 6 1,716,805 - -
TOTAL LIABILITIES 1,852,380 166,550 154,340
TOTAL EQUITY AND LIABILITIES 16,518,746 15,898,149 15,675,676
BEOWULF MINING PLC
CONSOLIDATED 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 Translation reserve Accumulated losses Total Non- Total equity
controlling
interest
£ £ £ £ £ £ £ £ £ £
8,281,751 24,684,737 137,700 46,451 732,185 (457,272) (17,083,185) 16,342,367 394,113 16,736,480
At 1 January 2021
Loss for the period - - - - - - (1,054,485) (1,054,485) (99,347) (1,153,832)
Foreign exchange translation - - - - - (454,474) - (454,474) (20,129) (474,603)
Total comprehensive loss - - - - - (454,474) (1,054,485) (1,508,959) (119,476) (1,628,435)
Transactions with owners
Issue of share capital 35,354 23,334 - - - - - 58,688 - 58,688
Issue costs - (18,760) - - - - - (18,760) - (18,760)
Step acquisition of Subsidiary - - - - - - (100,013) (100,013) 100,013 -
At 30 September 2021 (Unaudited) 8,317,105 24,689,311 137,700 46,451 732,185 (911,746) (18,237,683) 14,773,323 374,650 15,147,973
Loss for the period - - - - - - (296,694) (296,694) (35,085) (331,779)
Foreign exchange translation - - - - - (305,239) - (305,239) (14,526) (319,765)
Total comprehensive loss - - - - - (305,239) (296,694) (601,933) (49,611) (651,544)
Transactions with owners
Transfer of reserve on exercise - - - - (63,703) - 63,703 - - -
At 31 December 2021 (Audited) 8,317,105 24,689,311 137,700 46,451 668,482 (1,216,985) (18,470,674) 14,171,390 325,039 14,496,429
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 acquisition of Subsidiary - - - - - - (356,410) (356,410) 356,410 -
Transfer on lapse of options - - - - (392,921) - 392,921 - - -
At 30 September 2022 (Unaudited) 8,317,105 24,689,311 137,700 46,451 403,052 (1,185,731) (19,658,821) 12,749,067 661,265 13,410,332
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
£ £ £ £ £ £ £
At 1 January 2021 8,281,751 24,684,737 137,700 46,451 732,185 (17,168,118) 16,714,706
Loss for the period - - - - - (1,023,035) (1,023,035)
Total comprehensive loss - - - - - (1,023,035) (1,023,035)
Transactions with owners
Issue of share capital 35,354 23,334 - - - - 58,688
Issue costs - (18,760) - - - - (18,760)
At 30 September 2021 (Unaudited) 8,317,105 24,689,311 137,700 46,451 732,185 (18,191,153) 15,731,599
Loss for the period - - - - - (210,263) (210,263)
Total comprehensive loss - - - - - (210,263) (210,263)
Transactions with owners
Issue of share capital - - - - - - -
Issue costs - - - - (63,703) 63,703 -
At 31 December 2021 (Audited) (Unaudited) 8,317,105 24,689,311 137,700 46,451 668,482 (18,337,713) 15,521,336
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) 8,317,105 24,689,311 137,700 46,451 403,052 (18,927,253) 14,666,366
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.
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 2022 is unaudited and
has not been reviewed by the auditors. The financial information for the
twelve months ended 31 December 2021 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 2021 was unqualified 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 although
there is no immediate funding requirement, the Group will 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. They have therefore concluded that it is
appropriate to prepare the financial statements on a going concern basis.
3. Share Capital
(Unaudited) (Unaudited) (Audited)
30 September 2022 30 September 2021 31 December 2021
£ £ £
Allotted, issued and fully paid
Ordinary shares of 1p each 8,317,105 8,317,105 8,317,105
The number of shares in issue was as follows:
Number
of shares
Balance at 1 January 2021 828,175,224
Issued during the period 3,535,412
Balance at 30 September 2021 831,710,636
Issued during the period -
Balance at 31 December 2021 831,710,636
Issued during the period -
Balance at 30 September 2022 831,710,636
4. Share Based Payments
During the period ended 30 September 2022, 23,250,000 options were granted
(2021: Nil). The options outstanding as at 30 September 2022 have an exercise
price in the range of 1.00 pence to 5.25 pence (2021: 7.35 pence to 12.00
pence) and a weighted average remaining contractual life of 7 years, 199 days
(2021: 1 year, 234 days).
The share-based payments expense for the options for the period ended 30
September 2022 was £127,491 (2021: £Nil).
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 100.00% 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) Number Weighted average exercise price(£'s)
2022 2022 2021 2021
Outstanding at 1 January 13,750,000 0.089 22,750,000 0.060
Granted during the period 23,250,000 0.048 - -
Exercised during the period - - (9,000,000) 0.017
Lapsed during the period (4,500,000) 0.120 - -
Outstanding at 30 September 32,500,000 0.055 13,750,000 0.089
Exercisable at 30 September 11,750,000 0.060 13,750,000 0.089
5. Intangible Assets: Group
Exploration costs As at 30 As at 31 December
September 2021
2022
(Unaudited) (Audited)
£ £
Cost
At 1 January 11,235,656 11,371,916
Additions for the year 1,067,732 682,367
Foreign exchange movements 52,595 (818,627)
Impairment - -
Total 12,355,983 11,235,656
The net book value of exploration costs is comprised of expenditure on the
following projects:
As at As at
30 31
September December
2022 2021
(Unaudited) (Audited)
£ £
Project Country
Kallak Sweden 7,369,052 7,210,380
Ågåsjiegge Sweden 7,853 6,482
Åtvidaberg Sweden 358,597 363,131
Pitkäjärvi Finland 1,590,803 1,457,826
Rääpysjärvi Finland 111,163 73,859
Karhunmäki Finland 54,484 51,622
Merivaara Finland 37,887 36,096
Luopioinen Finland 4,214 -
Mitrovica Kosovo 2,137,482 1,376,598
Viti Kosovo 684,448 659,662
12,355,983 11,235,656
Total Group exploration costs of £12,355,983 are currently carried at cost in
the financial statements. No impairment has been recognised during the period,
(2021:£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
2022 as an intangible exploration licence with a carrying value of
£7,369,052. 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.
6. Borrowings
(Unaudited) (Unaudited) (Audited)
30 September 2022 30 September 2021 31 December 2021
£ £ £
Current
Bridging loan 1,716,805 - -
Total 1,716,805 - -
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 is non-compounding. The Loan has a commitment fee of 5 per cent and a
Maturity Date of 28 February 2023.
Beowulf can repay the Loan and accrued interest at any time prior to the
Maturity Date. If the Loan and accrued interest is not repaid by 28 February
2023, at the latest, the Creditors have the right to offset a minimum of SEK 1
million at a time of the Loan and accrued interest into Swedish Depository
Receipts ("SDR") at a price per SDR calculated with a 15 per cent discount on
the volume weighted average price of the SDR during the preceding 5 trading
days to the conversion decision.
7. Post balance sheet events
There were no significant events to disclose.
8. 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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