REG - Beowulf Mining PLC - Unaudited Results for year ended 31 December 2024
28/02/2025 18:15
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RNS Number : 9720Y Beowulf Mining PLC 28 February 2025
28 February 2025
Beowulf Mining plc
("Beowulf" or the "Company")
Unaudited Preliminary Financial Results for the year ended 31 December 2024
Beowulf (AIM: BEM; Spotlight: BEO), the mineral exploration and development
company, announces its unaudited preliminary financial results for the year
ended 31 December 2024 (the "Period") and provides an update on its current
financial position.
Activities in the Period
Sweden
· Significant progress was made by Jokkmokk Iron Mines AB
("Jokkmokk Iron") at the Kallak Iron Ore Project ("Kallak") during the Period,
in preparation for the completion of the Pre-Feasibility Study ("PFS") and
Environmental Permit application.
· Dmytro Siergieiev was appointed in May as Project Director to
lead the development of Kallak.
· In June, a positive verdict was received from the Supreme
Administrative Court upholding the original award of the Kallak Exploitation
Concession.
· Metallurgical test-work confirmed the ability to produce an
exceptionally high-grade, low impurity iron ore concentrate grading over 70%
iron content ("Fe") and containing less than 2.0% silica and <0.23%
alumina. The product is anticipated to be highly sought-after as a feedstock
to support the decarbonisation of the steel industry. This test-work has also
enabled the development of the processing flowsheet which critically only
involves physical separation.
· Additional technical workstreams including site infrastructure,
logistics and transportation, and water and waste management were also
progressed during the Period with a number being substantially complete.
· The Consultation Process for Kallak, a critical part of the
Environmental Permitting process, was initiated in September with the
publication of a Consultation Document which set out the main parameters and
potential impacts of the project.
Finland
· During the Period, the strategy for the development of the
Graphite Anode Materials Plant ("GAMP") was updated to fast-track the
development of the full process thereby capturing more of the anode material
production value-chain and ensuring improved supply chain security. The PFS
for the full GAMP process was initiated.
· During the Period the majority of the test-work for the GAMP PFS
was completed and demonstrated the ability to produce battery grade material.
The completion of the PFS remains scheduled for the first quarter of 2025.
· Further optimisation studies completed during the Period
demonstrated the potential to reduce both energy and reagent consumption and
recycle reagents thereby reducing cost and environmental impact.
· Grafintec Oy ("Grafintec"), the wholly-owned subsidiary of
Beowulf, completed the BATCircle2.0 project in October with €530,000 grant
funding received from Business Finland and announced the initiation of the
BATCircle3.0 programme with a further grant commitment of €232,000 received.
The BATCircle grant funding schemes are designed to support the Finland-based
Circular Ecosystem of Battery Metals through granting of up to 50 per cent of
research and development programmes by Business Finland.
Kosovo
· During April, Beowulf consolidated 100% interest in Vardar
Minerals Limited ("Vardar") through an all-share transaction. Consolidating
full ownership of the subsidiary provided operational control and enabled the
Company to significantly reduce the Vardar overhead.
· At the same time as the consolidation, Ismet Krasniqi was
appointed to the Board of Vardar. Ismet has been involved since the formation
of Vardar and has been instrumental in obtaining licences and managing its
development.
· Exploration activity in Kosovo focused on infill soil and grab
sampling on the Shala East licence during the Period.
· Discussions with a number of potential strategic groups were
initiated and advanced during the Period with the objective of finding a
partner capable of financing an accelerated exploration programme whilst the
Company retains exposure to any future discovery.
Corporate
· On 3 April 2024, the Company completed a capital raise, raising a
total of SEK 56.3 million (approximately £4.4 million) by way of a rights
issue of Swedish Depository Receipts in Sweden and a PrimaryBid retail offer
and a placing to certain UK investors including members of the Board and
executive management. Proceeds of the capital raise were used to repay bridge
loan financing and to fund the continued development of the Company's
projects, in particular, Kallak in Sweden and the GAMP in Finland.
· In order to complete the capital raise, a General Meeting was
held to provide the Board of Directors with the requisite authorisation and
flexibility to increase the Company's share capital. In addition, given the
Company's share price was near the nominal value of the Ordinary Shares, the
existing Ordinary Shares of 1p each were subdivided into a new Ordinary Share
of 0.1p and a deferred A share of 0.9p.
· Following the capital raise, the Company, at its Annual General
Meeting ("AGM") on 14 June 2024, passed a resolution to complete a
consolidation of shares in the Company on the basis of 1 New Share of £0.05
(5 pence) for every 50 Existing Shares of £0.001 (0.1 of a penny) each. The
consolidation of the Existing Shares provides greater flexibility for the
Company when issuing new equity and should help to minimise dilution to
Shareholders.
· On 2 December 2024 the Company announced the appointment of PKF
Littlejohn LLP ("PKF") as the Company's auditor, succeeding BDO LLP ("BDO").
Financial
· The consolidated loss for 2024 of £1,789,000 was lower than 2023
of £2,937,909. This decrease was due to the following : professional fees of
£505,035 (2023: £696,247); foreign currency loss of £98,083 (2023:
£150,224); salary costs of £240,788 (2023: £483,221); impairment of
£72,563 (2023: £350,158), finance costs of £59,147 (2023: £197,724), legal
fees of £13,570 (2023: £85,928), audit and accountancy £87,188 (2023:
£122,174) and downstream processing costs of £67,976 (2023: £116,012).
· The administration expenses of the company of £1,565,601 in 2024
are lower than £2,778,142 in 2023. This decrease is primarily due to a
decrease in the following: the expected credit loss on the intercompany loans
of £467,651: (2023: £1,001,537), share-based payment expenses of £202,611
(2023: £321,534), salary costs of £166,227 (2023: £481,903), finance charge
of £59,147 (2023: £195,304), P.R. services of £49,899 (2023: £97,515) and
legal fees of £5,999 (2023: £83,226).
· Consolidated basic and diluted loss per share for the quarter
ended 31 December 2024 was 1.04 pence (Q4 2023: loss of 2.31 pence).
· £881,349 in cash was held at 31 December 2024 (31 December 2023:
£905,555).
· Exploration assets increased to £15,521,317 at 31 December 2024
compared to £14,797,833 at 31 December 2023.
· The cumulative foreign exchange translation losses held in equity
increased in the year ended 31 December 2024 to £2,395,934 (31 December 2023:
loss of £1,457,872). Much of the Company's exploration costs are in Swedish
Krona which has weakened against the pound since 31 December 2023.
· At 31 December 2024, there were 31,586,820 Swedish Depository
Receipts in issue representing 81.32 per cent of the issued share
capital of the Company. The remaining issued share capital of the Company is
held in the UK as AIM securities.
Current financial position
As the Company has noted in its December portfolio update, the market for
junior resource equities and the funding of development projects remains
challenging. The Company will need to secure additional financing and working
capital in the very near term if it is to continue to advance its projects and
indeed cover costs on a care and maintenance basis. Accordingly, the Company
is currently working with its advisers in Sweden and the UK to procure
additional near term financing and which would include management
participation. While discussions are at an advanced stage, there can be no
certainty that such financing can be obtained or on the terms of any
financing.
Post Period Activities
There have been no material events or transactions between the 31 December
2024 and the approval of these financial statements.
Ed Bowie, Chief Executive Officer of Beowulf, commented:
"Excellent progress has been made across the portfolio during 2024.
"At Kallak, we completed the metallurgical test-work to confirm that we can
produce a market-leading concentrate with very low impurities, and have made
significant progress with other key technical workstreams including
processing, infrastructure and water and waste management. Progress has also
been made from a permitting perspective with the verdict from the Supreme
Administrative Court upholding the Government's award of the Exploitation
Concession and the initiation of the Consultation Process with local
stakeholders and government agencies.
"In Finland, test-work was substantially completed in preparation for the
release of the GAMP PFS in Q1 2025. Results from this test-work continue to
confirm that the process can deliver battery grade material and has also
demonstrated other benefits including reduced energy and reagent consumption.
"We continue to refine our exploration targets in Kosovo and engage in
dialogue with potential partners to support the further development of our
highly prospective licence package.
"The progress made during 2024 has significantly de-risked our core assets and
has further highlighted their potential. The Beowulf team continue to work
tirelessly to advance the assets and demonstrate their underlying value and I
would like to thank them for their ongoing effort. I would also like to thank
our shareholders and stakeholders for their continued support."
Enquiries:
Beowulf Mining plc
Ed Bowie, Chief Executive Officer ed.bowie@beowulfmining.com
SP Angel
(Nominated Adviser & Joint Broker)
Ewan Leggat / Stuart Gledhill / Adam Cowl Tel: +44 (0) 20 3470 0470
Alternative Resource Capital
(Joint Broker)
Alex Wood Tel: +44 (0) 20 7186 9004
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
forecasts.
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 December 2024 was 81.32 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 test-work has produced a 'market leading' magnetite
concentrate of over 70% 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% iron
("Fe"), with an Inferred Mineral Resource of 39 Mt grading 27.1% Fe.
In Finland, Grafintec, a wholly-owned subsidiary, is developing the Graphite
Anode Material Plant to supply anode material to the lithium-ion battery
industry. The Company is completing a Pre-Feasibility Study on the downstream
processing plant. While the intention is to initially import graphite
concentrate from a third-party mine, Grafintec has a portfolio of graphite
projects in Finland including one of Europe's largest flake graphite resources
in the Aitolampi project in eastern Finland. 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 CO2 emissions across the supply chain.
In Kosovo, the Company, through its wholly owned subsidiary Vardar Minerals
("Vardar"), is focused on exploration in the Tethyan Belt, a major orogenic
metallogenic province for base and precious metals. Vardar is delivering
exciting results across its portfolio of licences and has several exploration
targets, including lead, zinc, copper, gold and lithium.
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 TWELVE MONTHS TO 31 DECEMBER 2024 AND THE THREE MONTHS TO 31 DECEMBER
2024
Notes (Unaudited) (Unaudited) (Unaudited) (Audited)
3 months ended 3 months ended 12 months ended 12 months ended
31 December 31 December 31 December 31 December 2023
2024 2023 2024
£
£ £ £
Continuing operations
Administrative expenses (332,180) (222,974) (1,658,765) (2,501,263)
Impairment of exploration assets (72,563) (341,926) (72,563) (350,158)
Operating loss (404,743) (564,900) (1,731,328) (2,851,421)
Finance costs 3 (517) (1,823) (61,324) (197,724)
Finance income 3 508 1,813 3,404 7,923
Grant income 3,561 12,795 3,561 96,750
Fair value losses on investments (3,313) - (3,313) -
Recovery of impairment on listed asset 6,563 - 6,563
-
Loss before and after taxation (404,504) (545,552) (1,789,000) (2,937,909)
Loss attributable to:
Owners of the parent (404,509) (528,676) (1,771,317) (2,863,959)
Non-controlling interests 5 (16,876) (17,683) (73,950)
(404,504) (545,552) (1,789,000) (2,937,909)
Loss per share attributable to the owners of the parent:
Basic and diluted (pence) 4 (1.04) (2.31) (5.13) (13.20)
BEOWULF MINING PLC
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE LOSS
FOR THE TWELVE MONTHS TO 31 DECEMBER 2024 AND THE THREE MONTHS TO 31 DECEMBER
2024
(Unaudited) (Unaudited) (Unaudited) (Audited)
3 months ended 3 months 12 months ended 12 months
31 December ended 31 December ended
2024 31 December 2024 31 December
2023 2023
£
£ £ £
Loss for the period / year (404,502) (545,552) (1,788,998) (2,937,909)
Other comprehensive income
Items that may be reclassified subsequently to profit or loss:
Exchange (loss) / gain arising on translation of foreign operations (219,335) 338,376 (958,164) (196,950)
Total comprehensive loss (623,837) (207,176) (2,747,162) (3,134,859)
Total comprehensive loss attributable to:
Owners of the parent (623,784) (190,554) (2,709,378) (3,032,416)
Non-controlling interests (53) (16,622) (37,784) (102,443)
(623,837) (207,176) (2,747,162) (3,134,859)
BEOWULF MINING PLC
CONDENSED COMPANY STATEMENT OF COMPREHENSIVE LOSS
FOR THE TWELVE MONTHS TO 31 DECEMBER 2024 AND THE THREE MONTHS TO 31 DECEMBER
2024
(Unaudited) (Unaudited) (Unaudited) (Audited)
3 months ended 3 months ended 12 months ended 12 months
31 December 31 December 31 December ended
2024 2023 2024 31 December
2023
£ £ £
Notes £
Continuing operations
Administrative expenses (280,000) (570,383) (1,565,601) (2,778,142)
Operating loss (280,000) (570,383) (1,565,601) (2,778,142)
Finance costs 3 - - (59,147) (195,304)
Finance income 3 465 1,806 3,207 7,655
Fair value losses on investments (3,313) - (3,313) -
Recovery of impairment on listed asset - 6,563 - 6,563
Loss before and after taxation and total comprehensive loss (282,848) (562,014) (1,624,854) (2,959,228)
Loss per share attributable to the owners of the parent:
Basic and diluted (pence) 4 (0.73) (2.43) (4.70) (13.64)
BEOWULF MINING PLC
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2024
(Unaudited) (Audited)
As at As at
31 December 31 December 2023
2024 £
£
ASSETS Notes
Non-current assets
Intangible assets 7 16,023,022 14,873,326
Property, plant and equipment 56,685 87,755
Investments 3,250 6,563
Loans and other financial assets 5,138 5,209
Right of use asset 48,333 63,158
16,136,428 15,036,011
Current assets
Trade and other receivables 192,512 152,004
Cash and cash equivalents 881,349 905,555
1,073,861 1,057,559
TOTAL ASSETS 17,210,289 16,093,570
EQUITY
Shareholders' equity
Share capital 5 12,356,927 11,571,875
Share premium 29,878,404 27,141,444
Merger reserve 425,497 137,700
Capital contribution reserve 46,451 46,451
Share-based payment reserve 1,124,131 903,766
Translation reserve (2,395,934) (1,457,872)
Accumulated losses (24,764,044) (23,235,514)
Total equity 16,671,432 15,107,850
Non-controlling interests - 514,430
TOTAL EQUITY 16,671,432 15,622,280
LIABILITIES
Current liabilities
Trade and other payables 508,124 433,662
Lease liability 20,717 22,575
528,841 456,237
Non-Current liabilities
Lease Liability 10,016 15,053
TOTAL LIABILITIES 538,857 471,290
TOTAL EQUITY AND LIABILITIES 17,210,289 16,093,570
BEOWULF MINING PLC
CONDENSED COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2024
Notes (Unaudited) (Audited)
As at As at
31 December 31 December 2023
2024 £
£
ASSETS
Non-current assets
Investments 4,428,706 3,967,878
Loans and other financial assets 14,995,747 12,839,865
Property, plant and equipment 723 964
19,425,176 16,808,707
Current assets
Trade and other receivables 20,150 49,155
Cash and cash equivalents 714,339 794,909
734,489 844,064
TOTAL ASSETS 20,159,665 17,652,771
EQUITY
Shareholders' equity
Share capital 5 12,356,927 11,571,875
Share premium 29,878,404 27,141,444
Merger reserve 425,497 137,700
Capital contribution reserve 46,451 46,451
Share-based payment reserve 1,124,131 903,766
Accumulated losses (23,795,274) (22,276,683)
TOTAL EQUITY 20,036,136 17,524,553
LIABILITIES
Current liabilities
Trade and other payables 123,529 128,218
123,529 128,218
TOTAL LIABILITIES 123,529 128,218
TOTAL EQUITY AND LIABILITIES 20,159,665 17,652,771
BEOWULF MINING PLC
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE TWELVE MONTHS TO 31 DECEMBER 2024
Share capital Share premium Merger relief reserve Capital contribution reserve Share-based payment reserve Translation reserve Accumulated losses Total Non- Total equity
controlling
interest
£ £ £ £ £ £ £ £ £ £
At 1 January 2023 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 year - - - - - - (2,863,959) (2,863,959) (73,950) (2,937,909)
Foreign exchange translation - - - - - (168,457) - (168,457) (28,493) (196,950)
Total comprehensive loss - - - - - (168,457) (2,863,959) (3,032,416) (102,443) (3,134,859)
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 - - - - 387,668 - - 387,668 - 387,668
Step up interest in subsidiary - - - - - - (48,141) (48,141) 48,141 -
At 31 December 2023 (Audited) 11,571,875 27,141,444 137,700 46,451 903,766 (1,457,872) (23,235,514) 15,107,850 514,430 15,622,280
Loss for the year - - - - - - (1,771,315) (1,771,315) (17,683) (1,788,998)
Foreign exchange translation - - - - - (938,062) - (938,062) (20,101) (958,163)
Total comprehensive loss - - - - - (938,062) (1,771,315) (2,709,377) (37,784) (2,747,161)
Transactions with owners
Issue of share capital 732,725 3,657,859 - - - - - 4,390,584 - 4,390,584
Cost of Issue - (920,899) - - - - - (920,899) - (920,899)
Issue of share capital for acquisition of NCI 52,327 - 287,797 - - - - 340,124 - 340,124
Equity-settled share-based payment transactions - - - - 326,628 - - 326,628 - 326,628
Step acquisition of subsidiary - - - - - 136,522 136,522 (476,646) (340,124)
Transfer on lapse of options - - - - (106,263) - 106,263 - - -
At 31 December 2024 (Unaudited) 12,356,927 29,878,404 425,497 46,451 1,124,131 (2,395,934) (24,764,044) 16,671,432 - 16,671,432
BEOWULF MINING PLC
CONDENSED COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE TWELVE MONTHS TO 31 DECEMBER 2024
Share capital Share premium Merger relief reserve Capital contribution reserve Share-based payment reserve Accumulated losses Total
£ £ £ £ £ £ £
At 1 January 2023 8,317,106 24,689,311 137,700 46,451 516,098 (19,317,455) 14,389,211
Loss for the year - - - - - (2,959,228) (2,959,228)
Total comprehensive loss - - - - - (2,959,228) (2,959,228)
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 - - - - 387,668 - 387,668
At 31 December 2023 (Audited) 11,571,875 27,141,444 137,700 46,451 903,766 (22,276,683) 17,524,553
Loss for the year - - - - - (1,624,854) (1,624,854)
Total comprehensive loss - - - - - (1,624,854) (1,624,854)
Transactions with owners
Issue of share capital 732,725 3,657,859 - - - - 4,390,584
Cost of issue - (920,899) - - - - (920,899)
Issue of share capital for acquisition of NCI 52,327 - 287,797 - - 340,124
Equity-settled share-based payment transactions - - - - 326,628 - 326,628
Transfer on lapse of options - - - - (106,263) 106,263 -
At 31 December 2024 (Unaudited) 12,356,927 29,878,404 425,497 46,451 1,124,131 (23,795,274) 20,036,136
BEOWULF MINING PLC
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
AS AT 31 DECEMBER 2024
(Unaudited) (Audited)
31 December 2024 31 December
2023
£ £
Cash flows from operating activities
Loss before income tax (1,789,000) (2,937,909)
Depreciation charges 26,127 43,276
Amortisation 37,205 29,478
Loss on disposal of property, plant and equipment 778 643
Gain on disposal of right of use assets - (58)
Equity-settled share-based transactions 326,628 387,668
Impairment of exploration costs 72,563 350,158
Finance income (3,403) (7,923)
Finance cost 61,324 197,724
Grant income - (96,750)
Fair value losses 3,313 -
Unrealised FX losses 112,388 86,637
Recovery of impairment - (6,563)
(1,152,077) (1,953,619)
(Increase)/decrease in trade and other receivables (39,177) 61,395
Increase/(decrease) in trade and other payables 8,545 (277,400)
Net cash used in operating activities (1,182,709) (2,169,624)
Cash flows from investing activities
Purchase of intangible assets (2,265,113) (2,308,473)
Purchase of property, plant and equipment - (7,052)
Loans to subsidiaries - (33,121)
Interest received 3,404 7,923
Grant receipt 152,941 96,750
Net cash used in investing activities (2,108,768) (2,243,973)
Cash flows from financing activities
Proceeds from issue of shares 4,390,584 4,373,056
Payment of share issue costs (920,900) (704,587)
Lease principal (31,064) (21,228)
Lease interest paid (2,177) (2,420)
Proceeds from borrowings, net of issue costs 723,881 -
Repayment of loan principal (699,172) -
Interest paid (59,147) -
Net cash generated from financing activities 3,402,005 3,644,821
Increase/(decrease) in cash and cash equivalents 110,528 (768,776)
Cash and cash equivalents at beginning of year 905,555 1,776,556
Effect of foreign exchange rate changes (134,734) (102,225)
Cash and cash equivalents at end of year 881,349 905,555
BEOWULF MINING PLC
CONDENSED COMPANY CASH FLOW STATEMENT
AS AT 31 DECEMBER 2024
(Unaudited) (Audited)
31 December 2024 31 December
2023
£ £
Cash flows from operating activities
Loss before income tax (1,624,854) (2,959,228)
Expected credit losses 467,651 1,001,537
Equity-settled share-based payments 202,611 321,534
Depreciation 241 233
Loss on disposal of property, plant and equipment - 643
Finance income (3,207) (7,655)
Finance cost 59,147 195,304
Fair value losses 3,313 -
Unrealised FX losses 112,388 86,637
Recovery of impairment on listed investment - (6,563)
(782,710) (1,367,558)
Decrease in trade and other receivables 29,007 4,129
Decrease in trade and other payables (4,688) (88,052)
Net cash used in operating activities (758,392) (1,451,481)
Cash flows from investing activities
Loans to subsidiaries (2,623,533) (2,757,113)
Interest received 3,207 7,655
Financing of subsidiary - (250,000)
Purchase of property, plant and equipment - (1,006)
Net cash used in investing activities (2,620,326) (3,000,464)
Cash flows from financing activities
Proceeds from issue of shares 4,390,584 4,373,056
Payment of share issue costs (920,900) (704,587)
Proceeds from borrowings 723,881 -
Repayment of loan principal (699,172) -
Interest paid (59,147) -
Net cash generated from financing activities 3,435,246 3,668,469
Increase/(decrease) in cash and cash equivalents 56,528 (783,476)
Cash and cash equivalents at beginning of year 794,909 1,667,840
Effect of foreign exchange rate changes (137,099) (89,455)
Cash and cash equivalents at end of year 714,339 794,909
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR
THE TWELVE MONTHS TO 31 DECEMBER 2024
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 (UK-IAS). 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 2023 except as detailed
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 period ended 31 December 2024 is unaudited and
has not been reviewed by the auditors. The financial information for the
twelve months ended 31 December 2023 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 2023 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.
Going concern
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.
Acquisition of non-controlling interests
The remaining 38.9% of Vardar Minerals Limited was acquired in April 2024 and
the remaining 34.25% of Wayland Copper Limited was acquired in November 2024.
3. Finance cost
(Unaudited) (Unaudited) (Unaudited) (Audited)
3 months 3 months 12 months 12 months
ended ended ended ended
Group 31 December 2024 31 December 2023 31 December 2024 31 December 2023
Other interest receivable 508 1,813 3,304 7,923
Total finance income 508 1,813 3,304 7,923
(Unaudited) (Unaudited) (Unaudited) (Audited)
3 months 3 months 12 months 12 months
ended ended ended ended
Parent 31 December 2024 31 December 2023 31 December 2024 31 December 2023
Other interest receivable 465 1,806 3,207 7,655
Total finance income 465 1,806 3,207 7,655
(Unaudited) (Unaudited) (Unaudited) (Audited)
3 months 3 months 12 months 12 months
ended ended ended ended
Group 31 December 2024 31 December 2023 31 December 2024 31 December 2023
Bridging loan amortised interest - - 59,147 195,304
Lease liability interest 517 1,823 2,177 2,420
Total finance expense 517 1,823 61,324 197,724
(Unaudited) (Unaudited) (Unaudited) (Audited)
3 months 3 months 12 months 12 months
ended ended ended Ended
Parent 31 December 2024 31 December 31 December 2024 31 December 2023
2023
Bridging loan amortised interest - - 59,147 195,304
Total finance expense - - 59,147 195,304
4. Loss per share
(Unaudited) (Unaudited) (Unaudited) (Audited)
3 months 3 months 12 months 12 months
ended ended ended ended
Group 31 December 2024 31 December 2023 31 December 2024 31 December 2023
Loss for the Period/year attributable to shareholders of the Company (£'s) (404,509) (528,676) (1,771,317) (2,863,959)
Weighted average number of ordinary shares 38,844,790 1,157,187,463 34,550,117 21,699,167
Loss per share (p) (1.04) (2.31) (5.13) (13.20)
Parent
Loss for the Period/year attributable to shareholders of the Company (£'s) (282,848) (562,014) (1,624,854) (2,959,228)
Weighted average number of ordinary shares 38,844,790 1,157,187,463 34,550,117 21,699,167
Loss per share (p) (0.73) (2.43) (4.70) (13.64)
The weighted average number presented for the period ending 31 December 2023
above and the year ending 31 December 2023 in the statement of comprehensive
income have been adjusted for the effect of a 50 to 1 share consolidation.
5. Share capital
(Unaudited) (Audited)
31 December 31 December
2024 2023
£ £
Allotted, issued and fully paid
Ordinary shares of 1p each - 11,571,875
Ordinary shares of 5p each 1,942,240 -
Deferred A shares of 0.9p each 10,414,687 -
12,356,927 11,571,875
The number of shares in issue was as follows:
Number
of shares
Balance at 1 January 2023 831,710,636
Issued during the year 325,476,827
Balance at 31 December 2023 1,157,187,463
Effect of share consolidation (1,134,043,714)
Balance at 1 January 2024 (after share consolidation) 23,143,749
Issued during the year 15,701,041
Balance at 31 December 2024 38,844,790
Number
of deferred A shares
Balance at 1 January 2023 -
Issued during the year -
Balance at 31 December 2023 -
Issued during the year 1,157,187,463
Balance at 31 December 2024 1,157,187,463
On 5 March 2024, each of the existing ordinary shares of 1p each in capital of
the Company was sub-divided and re-classified into 0.1p New Ordinary Share and
0.9p Deferred A Share. The deferred A shares do not entitle the holders
thereof to receive notice of or attend and vote at any general meeting of the
Company or to receive dividends or other distributions or to participate in
any return on capital on a winding up unless the assets of the Company are in
excess of £100,000,000. The Company retains the right to purchase the
deferred shares from any shareholder for a consideration of one pound in
aggregate for all that shareholder's deferred shares.
On 3 April 2024, the Company announced the completion of the Rights Issue to
issue 12,500,000 ordinary shares of £0.30. The PrimaryBid offer raised £3.8
million before expenses. In addition to this, 583,333 ordinary shares were
issued for underwriting commitments. As part of the PrimaryBid offer,
1,571,172 ordinary shares were issued to existing retail investors raising
£0.20 million.
On 9 April 2024, the Company issued 1,046,535 ordinary shares to the Vardar
minority holders for the consolidation of 100 per cent ownership of Vardar.
On 14 June 2024, the Company consolidated its ordinary share capital resulting
in every 50 existing ordinary shares of £0.001 each being consolidated into 1
new ordinary share of £0.05 each. At the period end, the Company had
38,844,790 Ordinary Shares in issue (Q4 2023: 23,143,749). All numbers
presented within this note have been stated post share consolidation.
6. Share based payments
During the year ended 31 December 2024, 2,560,000 options were granted (year
ended 31 December 2023: 465,000). One third of the options vest after one
year, with the remaining two thirds vesting in equal portions after two and
three years. The options outstanding as at 31 December 2024 have an exercise
price in the range of 37.50 pence to 262.50 pence (31 December 2023: 50.0
pence to 367.5 pence) a weighted average remaining contractual life of 8
years, 248 days (31 December 2023: 5 years, 294 days).
The share-based payments expense for the options for the year ended 31
December 2024 was £326,628 (year ended 31 December 2023: £387,668).
The fair value of share options granted and outstanding were measured using
the Black-Scholes model, with the following inputs:
2024 2024 2024 2023 2022 2022
Fair value at grant date 0.48p 0.51p 0.30p 0.52p 3.59p 3.59p
Share price 0.70p 0.73p 0.70p 1.68p 4.00p 4.00p
Exercise price 0.75p 0.75p 0.75p 2.06p 1.00p 1.00p
Expected volatility 77.5% 79.9% 77.5% 55.2% 100.0% 100.0%
Expected option life 6 years 6 years 2 years 2.5 years 6 years 6 years
Contractual option life 10 years 10 years 10 years 5 years 10 years 10 years
Risk free interest rate 4.080% 4.100% 4.480% 4.800% 4.520% 4.520%
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 650,000 2.75
Granted during the period 245,000 1.05
Outstanding at 31 December 2023 895,000 2.30
Exercisable at 31 December 2023 745,000 2.10
Reconciliation of options in issue Number Weighted average exercise price(£'s)
Outstanding at 1 January 2024 895,000 2.30
Granted during the period 2,560,000 0.38
Lapsed during the period (285,000) 3.31
Outstanding at 31 December 2024 3,170,000 0.65
Exercisable at 31 December 2024 688,333 1.51
No warrants were granted during the year (2023: Nil).
The reconciliation of options in issue presented for the year ending 31
December 2023 has retrospectively adjusted for the effect of a 50 to 1 share
consolidation
7. Intangible assets: Group
Exploration assets Other Total
intangible
assets
Net book value £ £ £
As at 31 December 2023 (Audited) 14,797,833 75,493 14,873,326
As at 31 December 2024 (Unaudited) 15,521,317 501,705 16,023,022
Exploration costs (Unaudited) (Audited)
As at As at
31 December 31 December
2024 2023
£ £
Cost
At 1 January 14,797,833 13,002,465
Additions for the year 1,751,954 2,330,902
Foreign exchange movements (955,907) (185,376)
Impairment (72,563) (350,158)
Total 15,521,317 14,797,833
The net book value of exploration costs is comprised of expenditure on the
following projects:
(Unaudited) (Audited)
As at As at
31 December 31 December
2024 2023
£ £
Project Country
Kallak Sweden 10,271,536 9,481,130
Pitkäjärvi Finland 1,627,258 1,667,854
Karhunmäki Finland - 55,935
Rääpysjärvi Finland 188,016 174,060
Luopioinen Finland 7,157 4,812
Emas Finland 48,898 41,693
Pirttikoski Finland 7,347 -
Mitrovica Kosovo 2,425,900 2,527,239
Viti Kosovo 663,106 680,331
Shala Kosovo 282,099 164,779
15,521,317 14,797,833
Total Group exploration costs of £15,521,317 are currently carried at cost in
the financial statements. Impairment of £72,563 has been recognised during
the Period for the projects relating to Karhunmäki due to the licence being
relinquished on 12 December 2024 (2023: £350,158 in project Ågåsjiegge and
Åtvidaberg).
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 is 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 31 December
2024 as an intangible exploration licence with a carrying value of
£10,271,536. 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 (Unaudited) (Audited)
As at As at
31 December 31 December
2024 2023
£ £
Cost
At 1 January 75,493 -
Additions in the year 439,917 75,779
Foreign exchange movements (13,705) (286)
Total 501,705 75,493
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.
8. Post balance sheet events
The directors confirm that there have been no material events or transactions
that have occurred between the balance sheet date and the date of approval of
these financial statements, which would require adjustment or disclosure.
9. Availability of announcement
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 201 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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