REG - Bluejay Mining PLC - Final Results ended 31 December 2021
19/05/2022 07:00
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RNS Number : 0254M Bluejay Mining PLC 19 May 2022
Bluejay Mining plc / EPIC: JAY / Market: AIM / Sector: Mining
19 May 2022
Bluejay Mining plc ('Bluejay' or the 'Company')
Final Results for the Period ended 31 December 2021
Bluejay Mining plc, the AIM and FSE listed exploration company with projects
in Greenland and Finland, is pleased to announce its Final Results for the
year ended 31 December 2021 (the 'Period'). The Company also gives notice
that its Annual General Meeting ('AGM') will be held on 23 June 2022 at 10:00
at The Washington Mayfair Hotel, 5 Curzon Street, London, W1J 5HE. Copies of
the Notice of AGM, together with the Form of Proxy and Annual Report will be
posted to shareholders tomorrow and available to view on the Company's website
shortly.
Highlights in 2021:
· Final Permits in place to start production at the Dundas Ilmenite
Project ('Dundas'), Greenland
· Joint Venture ('JV') signed at the Disko-Nuussuaq Project, Greenland
with KoBold Metals
· JV agreed with Rio Tinto at the Enonkoski Project, Finland, and
commencement of up-to $20 million exploration campaign
· First field season completed for the Thunderstone Project, Greenland
· Leading global investment bank appointed as Lead Arranger for Dundas
· Letters of Interest received from four Export Credit Agencies for
Dundas
· Conditional divestment of the Black Shales Assets, Finland, for £4
million
· Repayment of the successfully litigated VAT refund received
· Appointment of Mr Johannus Egholm Hansen to the Board as
Non-Executive Director and Mr Peter Davis as Project Manager at Dundas
· Bulk sample pilot plant processing completed for Dundas
Post Period:
· First phase exploration programme completed at the Enonkoski project,
Finland, with 2022 phase imminent
· Electronic Nautical Charts published for Dundas
· Appointment of Mr Eric Sondergaard as Executive Director to the Board
· Incorporation of the Disko-Nuussuaq JV company - Nikkeli Greenland
A/S
· European Raw Material Alliance ('ERMA') announced official support
for the Dundas Ilmenite Project
· Capital increase supported by existing institutional shareholders
raising $7 million (£5.4 million) for completion of Dundas Ilmenite
feasibility for Project Finance sign-off
· Comprehensive field season announced for summer 2022 at
Disko-Nuussuaq Project
Chairman's Statement
2021 marked another year that saw disruptions and difficult conditions
relating to COVID-19 regulations and restrictions. However, the Company was
still able to deliver on several key milestones and make significant progress
across all its projects and business areas. During the year the Company signed
a $20 million Joint Venture ('JV') and earn-in agreement on one of its nickel
projects in Finland with one of the world's largest mining companies. We
also strengthened our Board with the appointments of Johannus Egholm Hansen
as Non-Executive Director and post year-end, Eric Sondergaard as Executive
Director. In addition, Peter Davis was appointed as Project Manager for the
Dundas Ilmenite Project. Peter has extensive experience in mineral sands and
titanium dioxide pigment operations. These additions undoubtedly leave us in a
strong position going forward with the Board and management team well equipped
with the experience and knowhow to drive the Company forward and deliver on
its stated objectives.
One of the most significant developments during the Period was the signing of
a JV agreement at the Disko-Nuussuaq magmatic massive sulphide
nickel-copper-platinum-cobalt project ('Disko') in Greenland with KoBold
Metals ('KoBold'), whereby KoBold will fund exploration on the project.
KoBold's principal investor is Breakthrough Energy Ventures, which is overseen
by Bill Gates, and is committed to identifying sustainable supplies of
critical and battery metals using their proprietary AI Technology. KoBold
recently completed a $192.5 million fundraise, which will fund its work on
Disko as well as their other exploration assets. Over the Period, Bluejay also
reached agreement to spin out its Finnish Black Shales Assets to Metals One
for circa £4 million in cash and shares.
During 2022 the Company will focus on the continued development of its various
assets specifically advancing Dundas to production, supported by early site
development and geotechnical work for infrastructure as well as progressing
project financing.
Greenland
Most notably, during the Period, we entered a strategic partnership with
KoBold on the Disko project. KoBold may earn up to 51% of the project through
significant expenditure over a three-year period. It is of particular
significance that KoBold is aligned with our goals to develop critical
materials needed for the green transition sourced in an ethical and
sustainable manner.
In the post period the Company and KoBold released the 2022 work programme
plan for Disko. This is the first major exploration campaign to be undertaken
by the JV, and will incorporate KoBold's cutting-edge technology and Bluejay's
operational and local expertise with the objective of targeting massive
nickel, copper, cobalt and platinum group metals bearing sulphides. The
2022-programme will include 9,500-line kilometres ('km') of
fixed-wing/helicopter/drone supported geophysical surveys, and 4,000
geochemical sample locations covering 200-line km of soil sampling. Work is
expected to commence in early June.
KoBold's cutting-edge technology will provide a higher degree of confidence in
targeting which, alongside Bluejay's operational expertise in Greenland,
increases confidence of a major discovery and the recognition of a new mineral
province in West Greenland. The geopolitical turmoil experienced this year has
exposed supply risks, and the need to identify and develop new deposits in
stable jurisdictions, such as Greenland, has never been greater.
Last year Bluejay received approval for the Exploration and Closure Plan for
Dundas from the Government of Greenland, the final Government approval. This
follows the awarding of the project's Exploration Licence that was announced
in December 2020. On a technical front we continue to progress the engineering
optimisation and cost saving studies for Dundas. The £5.2 million of net
proceeds received from the placing in March 2022 will be utilised to complete
the feasibility study at Dundas to the level required for financial sign-off
by a project finance lending syndicate. The Company will commence works this
forthcoming field season, completing the necessary engineering, geo-technical
and planning activities, including an optimised mine schedule for production.
Additionally, the Company has received Letters of Interest from four
International Export Credit Agencies, which could form part of the lending
syndicate along with commercial banks, and industrial entities that Bluejay
has been engaged in communication with over the last 12 months. The syndicate
will be led by our Lead Arranger, a leading global investment bank, all within
a backdrop of robust ilmenite prices.
The pilot processing plant in Canada was successfully restarted in 2021
following its closure in 2020 due to COVID restrictions. This enabled the
remaining material shipped from Greenland to be processed to produce
concentrate suitable for larger scale testing by key customers. The test work
also provided additional valuable data for the detailed design of the
industrial scale plant. The pilot plant was decommissioned and closed in
December 2021. The output from the pilot plant was shipped for potential
customers of the Company's distribution partner. Feedback in 2022 will enable
negotiations to consolidate and extend the existing distribution agreement.
Post period, the Danish Geodata Agency, Geodatastyrelsen, published the
Electronic Nautical Charts which cover the key seaward approach and coastal
waters for shipping to and from Dundas. The charts provide important
navigational and bathymetric data which will be utilised during the
construction period and the production phase of the project to ensure future
safe shipping operation. This enables us to advance discussions with potential
bulk-carrier companies regarding the transport of our products from the mine
area.
Turning to Thunderstone, we received, in late January, initial exploration
results from our maiden field programme. These initial results justify
continued work to further assess the newly identified gold-silver anomalies as
well as other high tenor base-metal results (Cu-Au-Ag-Mo-Zn and
Cu-Ni-Cr-Co±Pt, Pd anomalies). Future work will focus on these newly
identified anomalies.
Additionally, during the year, Greenland held a general election and formed a
new coalition Government. Our newly appointed CEO, Bo Stensgaard, met with
the newly appointed Minister for Housing, Infrastructure, Mineral Resources
and Gender Equality, Ms Naaja Nathanielsen in May 2021. During this meeting
the Minister confirmed that the Greenland Government continues to support the
Mineral Strategy 2020-2024, which provides the framework for further
development of mineral resources in the country.
Finland
In 2021, the Company entered into a JV and earn-in agreement with Rio Tinto
Mining and Exploration Ltd ('Rio Tinto') at the Company's Enonkoski
nickel-copper-cobalt-PGM project ('Enonkoski'). During the year an initial
diamond drill programme of 3,000m was completed. The programme targeted
mineralisation in the near-mine areas Tevanjoki and Laukunsuo and included a
top of bedrock sampling programme with a total of 99 drill holes and downhole
electromagnetic surveys on 22 drill holes. In September, Rio Tinto approved
and extended further exploration expenditure which resulted in a further 12
diamond drill holes and one drill hole extension for a total of 4149.45m of
drilling. This approval showcased Rio Tinto's confidence in the project and
emphasised the potential of Enonkoski to be a profitable project. From the
drill programme, intersections of nickel-copper sulphide droplet zones logged
in mafic intrusions were identified, which indicates promising results as
these were analogous features of the former mine close to the orebody.
Following on from the work carried out in 2021, further confidence in the
project was demonstrated when the JV recently announced its planned work
programme for 2022. Preliminary plans include 1,500m follow-up diamond
drilling at targets drilled last year, up to 60 top of bedrock drill holes
focused on new targets and infill sampling, as well as geological mapping and
sampling.
In July the Company provided an update on its Outokumpu
copper-cobalt-gold-silver project ('Outokumpu') where Bluejay's 100% owned
subsidiary, FinnAust Mining Finland Oy ('FinnAust') identified five drill
targets on the Outokumpu Belt. The first stage of the drill programme is
focusing on the Haapovaara target with 1,500m of drilling and the Haaponiemi
target, a deep target with 2,500m of drilling. The Company is in early
discussions with various parties interested in partnering on the project,
adding a further potential asset to the Company's value realisation strategy
to monetise its non-flagship assets. The compelling nature of this project's
exploration targets are emphasised by the global demand for base metals to be
used within the battery industrial ecosystem, the electrification movement and
in the green transition. As a result, the five targets identified at Outokumpu
provide an exciting outlook for the project that will, and have, drawn
interest from potential partners.
Bluejay went on to sign a binding term sheet and entered into a conditional
agreement for the sale of its Paltamo and Rautavaara nickel-zinc-copper-cobalt
projects (collectively known as The Black Shales Project) to Metals One plc
for a combination of cash and shares totalling more than £4 million, further
monetising the Company's portfolio of high-quality mineral projects. This
agreement operates in line with a key aspect of the Company's strategy to
develop its range of assets and attract potential partners.
Financial
Following a period of cash preservation during the peak of the COVID-19
Pandemic, the Company has accelerated activities. The Group's cash balance at
year-end was £2.7 million and has been bolstered following the post-period
placing in March. The additional $7 million (£5.38 million before fees)
fundraise supported by the Company's existing institutional shareholders, will
enable the Company to complete the feasibility study that is required for
Dundas to continue to progress the project into production. Over the year
Bluejay has continued its extensive optimisation process to maximise project
economics, identify lower cost options for infrastructure, mine, and
processing solutions.
We ended the year with the receival of the VAT refund, of approximately £1.1
million, from our activities in Finland and Greenland. This was a result of
Her Majesty's Revenue and Customs ('HMRC') withdrawing its appeal on the
First-Tier Tribunal's decision. With the case closed, Bluejay can continue to
reclaim VAT on its future activities.
Outlook
The past year saw the Company complete and further develop the portfolio, as
well as monetise Company assets with the conditional sale of the Black Shales.
The JV agreement with KoBold marked a notable step towards the development
of the Disko project with secure funding and world class technology being
utilised at the project.
The backing of KoBold supports a key part of Bluejay's strategy to focus on
sustainable operations with the highest of Environmental, Social and
Governance standards, and developing a supply chain of sustainable battery
metals to aid the green transition. The Company's strategy continues to be
based around developing and delivering high-grade, high-tonnage, scalable
deposits, with simple processing routes in supportive jurisdictions. The
Company has followed this strategy throughout the year and is making good
progress. In addition, the Company anticipates the receipt of fee income, for
its role as field work manager at both Enonkoski and Disko in 2022.
The Company, post period, also replenished its balance sheet with our
successful $7 million equity raise that will ensure the completion of the
feasibility study at Dundas to the point of Project Finance sign off.
The outlook at Dundas has grown throughout 2021, the developments made have
further outlined the importance and potential of our flagship project. The
appointment of the Lead Arranger of the project financing will help move the
project towards construction and then commercial production. To further
support the financing and development of Dundas, the addition of Peter Davies
as Project Manager will provide significant experience, specifically, in
mineral sands and titanium dioxide pigment operations. His experience in this
industry will aid in the completion of the preparatory works and the necessary
requirements for the Lead Arranger to financially sign off pre-construction
works.
Furthering the credentials of the Dundas project, the ERMA announced its
official support for Dundas, this will enable it to help secure Dundas
ilmenite for end users within the European Union ('EU'), creating a secure
supply chain option for titanium ore and concentrate. The recognition and
support of the project from ERMA adds to the support already received from the
government of Greenland and the financial support from a leading global
investment bank.
Conversations with the Deputy Minister for the Ministry of Mineral Resources
and the Minister for Housing, Infrastructure, Minerals Resources and Gender
Equality in Greenland in 2021 demonstrates the Greenlandic Government's
support for the Company's projects and ambitions in the country. This
continued relationship between the Company and Greenland's government opens
avenues for Bluejay to develop its projects on schedule and allows the Company
to provide economic and social benefits to all its stakeholders, including the
local communities.
The conditional partial divestment of the Black Shale assets in Finland
continued the Company's focus on maintaining its cash flow by monetising
certain assets within its portfolio, maintaining our strategy of partnering
projects to optimise the best expenditure and ownership outcome for
shareholders. On this note we were delighted that our JV partner Rio Tinto
confirmed the planned field activities for 2022 at Enonkoski, expected to
recommence imminently. We will continue to look for opportunities to further
monetise these types of assets to provide further funds to develop our
flagship projects.
Bluejay's operating jurisdictions remain supportive, it has large scale
resources, high grades, low costs, strong economics, institutional and
industry backers, an experienced team and access to end markets. As a result,
the outlook for the Company remains extremely positive for the upcoming year.
I am grateful to all of the communities in which we operate, our strategic
partners, stakeholders, advisors and the entire Bluejay team for their
continued support and tireless work. Whilst the immediate global outlook
continues to be dominated by COVID and the war in Ukraine, we are focused on
delivering our key milestones and continuing to progress our portfolio, and
look forward to another productive and promising year. In the meantime, we
hope everyone continues to stay safe and well and we look forward to providing
further updates on Bluejay's successes in 2022.
STATEMENTS OF FINANCIAL POSITION
As at 31 December 2021
Group Company
Note 31 December 2021 31 December 2020 31 December 2021 31 December 2020
£ £ £ £
Non-Current Assets
Property, plant and equipment 6 1,802,379 2,556,911 30,651 91,862
Intangible assets 7 27,922,589 26,768,227 - -
Investment in subsidiaries 8 - - 34,509,322 33,168,092
29,724,968 29,325,138 34,539,973 33,259,954
Current Assets
Financial assets at fair value through profit or loss - 100,000 - 100,000
Trade and other receivables 9 228,909 1,503,896 564,181 1,248,085
Cash and cash equivalents 10 2,701,792 5,942,848 2,534,964 5,649,030
2,930,701 7,546,744 3,099,145 6,997,115
Total Assets 32,655,669 36,871,882 37,639,118 40,257,069
Non-Current Liabilities
Deferred tax liabilities 12 496,045 496,045 - -
496,045 496,045 - -
Current Liabilities
Lease liabilities - 62,220 - 62,220
Trade and other payables 11 630,833 1,179,694 365,175 175,928
630,833 1,241,914 365,175 238,148
Total Liabilities 1,126,878 1,737,959 365,175 238,148
Net Assets 31,528,791 35,133,923 37,273,943 40,018,921
Equity attributable to owners of the Parent
Share capital 14 7,484,355 7,484,232 7,484,355 7,484,232
Share premium 14 55,705,882 55,620,034 55,705,882 55,620,034
Other reserves 16 (7,213,274) (6,220,719) 1,292,323 644,738
Retained losses (24,448,172) (21,749,624) (27,208,617) (23,730,083)
Total Equity 31,528,791 35,133,923 37,273,943 40,018,921
The Company has elected to take the exemption under Section 408 of the
Companies Act 2006 from presenting the Parent Company Income Statement and
Statement of Comprehensive Income. The loss for the Company for the year ended
31 December 2021 was £3,486,819 (profit for year ended 31 December 2020:
£773,890).
CONSOLIDATED INCOME STATEMENT
For the year ended 31 December 2021
Continued operations Note Year ended 31 December Year ended 31 December
2021 2020
£ £
Revenue - -
Cost of sales 23 (199,844) -
Gross profit (199,844) -
Administrative expenses 23 (2,662,046) (2,510,820)
Other (losses)/gains 20 (46,072) 49,360
Foreign exchange gain/(losses) 18,235 (65,019)
Operating loss (2,889,727) (2,526,479)
Finance (expense)/income 19 (4,251) 1,968
Other income 187,145 36,949
Loss before income tax (2,706,833) (2,487,562)
Income tax 21 - 229,963
Loss for the year attributable to owners of the Parent (2,706,833) (2,257,599)
Basic and Diluted Earnings Per Share attributable to owners of the Parent 22 (0.28)p (0.23)p
during the period (expressed in pence per share)
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the year ended 31 December 2021
Year ended 31 December 2021 Year ended 31 December 2020
£ £
Loss for the year (2,706,833) (2,257,599)
Other Comprehensive Income:
Items that may be subsequently reclassified to profit or loss
Currency translation differences (1,640,140) 1,399,646
Other comprehensive income for the year, net of tax (4,346,973) 1,399,646
Total Comprehensive Income attributable to owners of the Parent (4,346,973) (857,953)
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended 31 December 2021
Note Share capital Share premium Other reserves Retained losses Total
£ £ £ £ £
Balance as at 1 January 2020 7,484,066 55,463,656 (7,604,567) (19,543,695) 35,799,460
Loss for the year - - - (2,257,599) (2,257,599)
Other comprehensive income for the year
Items that may be subsequently reclassified to profit or loss
Currency translation differences - - 1,399,646 - 1,399,646
Total comprehensive income for the year - - 1,399,646 (2,257,599) (857,953)
Share based payments 15 166 156,378 - - 156,544
Issued Options 14 35,872 - 35,872
Expired options 14 - - (51,670) 51,670 -
Total transactions with owners, recognised directly in equity 166 156,378 (15,798) 51,670 192,416
Balance as at 31 December 2020 7,484,232 55,620,034 (6,220,719) (21,749,624) 35,133,923
Balance as at 1 January 2021 7,484,232 55,620,034 (6,220,719) (21,749,624) 35,133,923
Loss for the year - - - (2,706,833) (2,706,833)
Other comprehensive income for the year
Items that may be subsequently reclassified to profit or loss
Currency translation differences - - (1,640,140) - (1,640,140)
Total comprehensive income for the year - - (1,640,140) (2,706,833) (4,346,973)
Share based payments 15 123 85,848 - - 85,971
Issued Options 14 655,870 - 655,870
Exercised options 14 - - (8,285) 8,285 -
Total transactions with owners, recognised directly in equity 123 85,848 647,585 8,285 741,841
Balance as at 31 December 2021 7,484,355 55,705,882 (7,213,274) (24,448,172) 31,528,791
COMPANY STATEMENT OF CHANGES IN EQUITY
For the year ended 31 December 2021
Note Share capital Share premium Other reserves Retained losses Total equity
£ £ £ £ £
Balance as at 1 January 2020 7,484,066 55,463,656 660,536 (24,555,643) 39,052,615
Profit for the year - - - 773,890 773,890
Total comprehensive income for the year - - - 773,890 773,890
Share based payments 15 166 156,378 - - 156,544
Issued Options 14 35,872 - 35,872
Expired Options 14 - - (51,670) 51,670 -
Total transactions with owners, recognised directly in equity 166 156,378 (15,798) 51,670 192,416
Balance as at 31 December 2020 7,484,232 55,620,034 644,738 (23,730,083) 40,018,921
Balance as at 1 January 2021 7,484,232 55,620,034 644,738 (23,730,083) 40,018,921
Loss for the year - - - (3,486,819) (3,486,819)
Total comprehensive income for the year - - - (3,486,819) (3,486,819)
Share based payments 15 123 85,848 - - 85,971
Issued Options 14 655,870 - 655,870
Exercised options 14 - - (8,285) 8,285 -
Total transactions with owners, recognised directly in equity 123 85,848 (647,585) 8,285 741,841
Balance as at 31 December 2021 7,484,355 55,705,882 1,292,323 (27,208,617) 37,273,943
STATEMENTS OF CASH FLOWS
For the year ended 31 December 2021
Group Company
Note Year ended Year ended Year ended 31 December 2021 Year ended 31 December 2020
31 December 2021 31 December 2020 £ £
£ £
Cash flows from operating activities
Profit/(Loss) before income tax (2,706,833) (2,487,563) (3,486,826) 773,890
Adjustments for:
Depreciation 6 460,713 606,585 83,645 103,308
Gain on sale of financial assets at FVTPL (75,497) - (75,497) -
Share options expense 15 655,870 35,872 655,870 35,872
Share based payments - 156,544 - 156,544
Intercompany management fees - - (722,716) (574,921)
Net finance (income)/costs 19 4,251 (1,968) (668,198) (641,556)
Non cash loss/(gain) 454 4,371 2,329,977 (1,648,862)
Impairments - 14,299 - -
Income tax received 21 - 229,963 - -
Changes in working capital:
Decrease in trade and other receivables 9 1,377,664 305,100 1,413,873 1,054,892
Increase/(Decrease) in trade and other payables 11 (321,408) (345,257) 171,081 (820,248)
Net cash used in operating activities (604,786) (1,482,054) (298,791) (1,561,081)
Cash flows from investing activities
Purchase of property plant and equipment 6 (26,037) (243,854) (22,433) (17,331)
Sale/(purchase) of financial assets at FVTPL 75,497 (100,000) 75,497 (100,000)
Sale of property, plant and equipment 6 179,245 - - -
Purchase of intangible assets 7 (2,887,110) (2,471,136) - -
Interest received 379 6,697 379 6,697
Net cash used in investing activities (2,658,026) (2,808,293) 53,443 (110,634)
Cash flows from financing activities
Proceeds from issue of share capital 14 85,970 - 85,970 -
Transaction costs of share issue 14 - - - -
Net loans granted to subsidiary undertakings - - (2,892,470) (2,795,805)
Repayment of loans (62,220) (80,814) (62,220) (80,814)
Interest paid (252) (1,528) - -
Net cash generated from financing activities 23,498 (82,342) (2,868,720) (2,876,619)
Net decrease/(increase) in cash and cash equivalents (3,239,314) (4,372,689) (3,114,068) (4,548,334)
Cash and cash equivalents at beginning of year 5,942,848 10,314,701 5,649,030 10,197,337
Exchange gain on cash and cash equivalents (1,742) 836 2 27
Cash and cash equivalents at end of year 10 2,701,792 5,942,848 2,534,964 5,649,030
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 31 December 2021
1. General information
The principal activity of Bluejay Mining plc (the 'Company') and its
subsidiaries (together the 'Group') is the exploration and development of
precious and base metals. The Company's shares are listed on the AIM of the
London Stock Exchange and the open market of the Frankfurt Stock Exchange. The
Company is incorporated and domiciled in England.
The address of its registered office is Suite 1, 15 Ingestre Place, London,
W1F 0DU.
2. Summary of significant Accounting Policies
The principal Accounting Policies applied in the preparation of these
Consolidated Financial Statements are set out below. These Policies have been
consistently applied to all the periods presented, unless otherwise stated.
2.1. Basis of preparation of Financial Statements
The consolidated financial statements have been prepared in accordance with
International Financial Reporting Standards (IFRS) as issued by the
International Accounting Standards Board (IASB) conformity with the Companies
Act 2006. The Consolidated Financial Statements have also been prepared under
the historical cost convention, except as modified for assets and liabilities
recognised at fair value on business combination.
The Financial Statements are presented in Pound Sterling rounded to the
nearest pound.
The preparation of financial statements in conformity with IFRS requires the
use of certain critical accounting estimates. It also requires management to
exercise its judgement in the process of applying the Accounting Policies. The
areas involving a higher degree of judgement or complexity, or areas where
assumptions and estimates are significant to the Consolidated Financial
Statements are disclosed in Note 4.
2.2. New and amended standards
(a) New and amended standards mandatory for the first time for the financial
periods beginning on or after 1 January 2021
The International Accounting Standards Board (IASB) issued various amendments
and revisions to International Financial Reporting Standards and IFRIC
interpretations. The amendments and revisions were applicable for the period
ended 31 December 2021 but did not result in any material changes to the
financial statements of the Group or Company.
ii) New standards, amendments and interpretations in issue but not yet
effective or not yet endorsed and not early adopted
Standards, amendments and interpretations that are not yet effective and have
not been early adopted are as follows:
Standard Impact on initial application Effective date
IFRS 3 Reference to Conceptual Framework 1 January 2022
IAS 37 Onerous contracts 1 January 2022
IAS 16 Proceeds before intended use 1 January 2022
Annual improvements 2018-2020 Cycle 1 January 2022
IAS 8 Accounting estimates 1 January 2023
IAS 1 Classification of Liabilities as Current or Non-Current. 1 January 2023
The Group is evaluating the impact of the new and amended standards above
which are not expected to have a material impact on the Group's results or
shareholders' funds.
2.3. Basis of Consolidation
The Consolidated Financial Statements consolidate the financial statements of
the Company and its subsidiaries made up to 31 December. Subsidiaries are
entities over which the Group has control. Control is achieved when the Group
is exposed, or has rights, to variable returns from its involvement with the
investee and has the ability to affect those returns through its power over
the investee.
Generally, there is a presumption that a majority of voting rights result in
control. To support this presumption and when the Group has less than a
majority of the voting or similar rights of an investee, the Group considers
all relevant facts and circumstances in assessing whether it has power over an
investee, including:
· The contractual arrangement with the other vote holders of the
investee;
· Rights arising from other contractual arrangements; and
· The Group's voting rights and potential voting rights
The Group re-assesses whether or not it controls an investee if facts and
circumstances indicate that there are changes to one or more of the three
elements of control. Subsidiaries are fully consolidated from the date on
which control is transferred to the Group. They are deconsolidated from the
date that control ceases. Assets, liabilities, income and expenses of a
subsidiary acquired or disposed of during the period are included in the
consolidated financial statements from the date the Group gains control until
the date the Group ceases to control the subsidiary.
Investments in subsidiaries are accounted for at cost less impairment within
the parent company financial statements. Where necessary, adjustments are made
to the financial statements of subsidiaries to bring the accounting policies
used in line with those used by other members of the Group. All significant
intercompany transactions and balances between Group enterprises are
eliminated on consolidation.
2.4. Going concern
The Consolidated Financial Statements have been prepared on a going concern
basis. Although the Group's assets are not generating revenues and an
operating loss has been reported, the Directors are of the view that the Group
has sufficient funds to meet all committed and contractual expenditure within
the next 12 months and to maintain good title to the exploration licences.
This will ensure they will still be in a strong financial position once they
are able to re-commence exploration activity.
The Group's business activities together with the additional factors likely to
affect its future development, performance and position are set out in the
Chairman's Report on pages 3-5. In addition, Note 3 to the Consolidated
Financial Statements includes the Group's objectives, policies and processes
for managing its capital; its financial risk management objectives; details of
its financial instruments and its exposure to market, credit and liquidity
risk.
The Directors have a reasonable expectation that the Group and Company have
sufficient resources to continue in the current economic climate and for the
foreseeable future. Thus, they continue to adopt the going concern basis of
accounting in preparing the Group and Company Financial Statements.
2.5. Segment reporting
Operating segments are reported in a manner consistent with the internal
reporting provided to the chief operating decision-maker (CODM). The CODM, who
is responsible for allocating resources and assessing performance of the
operating segments, has been identified as the Board of Directors that makes
strategic decisions.
Segment results include items directly attributable to a segment as well as
those that can be allocated on a reasonable basis.
2.6. Foreign currencies
(a) Functional and presentation currency
Items included in the Financial Statements of each of the Group's entities are
measured using the currency of the primary economic environment in which the
entity operates (the 'functional currency'). The functional currency of the UK
parent entity and UK subsidiary is Pound Sterling, the functional currency of
the Finnish subsidiaries is Euros and the functional currency of the
Greenlandic subsidiaries is Danish Krone. The Financial Statements are
presented in Pounds Sterling which is the Company's functional and Group's
presentation currency.
(b) Transactions and balances
Foreign currency transactions are translated into the functional currency
using the exchange rates prevailing at the dates of the transactions or
valuation where such items are re-measured. Foreign exchange gains and losses
resulting from the settlement of such transactions and from the translation at
period-end exchange rates of monetary assets and liabilities denominated in
foreign currencies are recognised in the income statement.
(c) Group companies
The results and financial position of all the Group entities (none of which
has the currency of a hyperinflationary economy) that have a functional
currency different from the presentation currency are translated into the
presentation currency as follows:
· assets and liabilities for each period end date presented are
translated at the period-end closing rate;
· income and expenses for each Income Statement are translated at average
exchange rates (unless this average is not a reasonable approximation of the
cumulative effect of the rates prevailing on the transaction dates, in which
case income and expenses are translated at the dates of the transactions); and
· all resulting exchange differences are recognised in other
comprehensive income.
On consolidation, exchange differences arising from the translation of the net
investment in foreign entities, and of monetary items receivable from foreign
subsidiaries for which settlement is neither planned nor likely to occur in
the foreseeable future, are taken to other comprehensive income. When a
foreign operation is sold, such exchange differences are recognised in the
Income Statement as part of the gain or loss on sale.
2.7. Intangible assets
Exploration and evaluation assets
The Group recognises expenditure as exploration and evaluation assets when it
determines that those assets will be successful in finding specific mineral
resources. Expenditure included in the initial measurement of exploration and
evaluation assets and which are classified as intangible assets relate to the
acquisition of rights to explore, topographical, geological, geochemical and
geophysical studies, exploratory drilling, trenching, sampling and activities
to evaluate the technical feasibility and commercial viability of extracting a
mineral resource. Capitalisation of pre-production expenditure ceases when the
mining property is capable of commercial production.
Exploration and evaluation assets are recorded and held at cost
Exploration and evaluation assets are not subject to amortisation, as such at
the year-end all intangibles held have an indefinite life, but are assessed
annually for impairment. The assessment is carried out by allocating
exploration and evaluation assets to cash generating units ('CGU's'), which
are based on specific projects or geographical areas. The CGU's are then
assessed for impairment using a variety of methods including those specified
in IFRS 6.
Whenever the exploration for and evaluation of mineral resources in cash
generating units does not lead to the discovery of commercially viable
quantities of mineral resources and the Group has decided to discontinue such
activities of that unit, the associated expenditures are written off to the
Income Statement.
Exploration and evaluation assets recorded at fair-value on business
combination
Exploration assets which are acquired as part of a business combination are
recognised at fair value in accordance with IFRS 3. When a business
combination results in the acquisition of an entity whose only significant
assets are its exploration asset and/or rights to explore, the Directors
consider that the fair value of the exploration assets is equal to the
consideration. Any excess of the consideration over the capitalised
exploration asset is attributed to the fair value of the exploration asset.
2.8. Investments in subsidiaries
Investments in Group undertakings are stated at cost, which is the fair value
of the consideration paid, less any impairment provision.
2.9. Property, plant and equipment
Property, Plant and equipment is stated at cost less accumulated depreciation
and any accumulated impairment losses. Depreciation is provided on all
property, plant and equipment to write off the cost less estimated residual
value of each asset over its expected useful economic life on a straight line
basis at the following annual rates:
Office Equipment - 5 years
Machinery and Equipment - 5 to 15 years
Software - 2 years
Subsequent costs are included in the asset's carrying amount or recognised as
a separate asset, as appropriate, only when it is probable that future
economic benefits associated with the item will flow to the Group and the cost
of the item can be measured reliably. The carrying amount of the replaced part
is derecognised. All other repairs and maintenance are charged to the income
statement during the financial period in which they are incurred.
The assets' residual values and useful lives are reviewed, and adjusted if
appropriate, at the end of each reporting period.
An asset's carrying amount is written down immediately to its recoverable
amount if the asset's carrying amount is greater than its estimated
recoverable amount. If an impairment review is conducted following an
indicator of impairment, assets which are not able to be assessed for
impairment individually are assessed in combination with other assets within a
cash generating unit.
Gains and losses on disposal are determined by comparing the proceeds with the
carrying amount and are recognised within 'Other (losses)/gains' in the Income
Statement.
2.10. Impairment of non-financial assets
Assets that have an indefinite useful life, for example, intangible assets not
ready to use, and goodwill, are not subject to amortisation and are tested
annually for impairment. Property, plant and equipment is reviewed for
impairment whenever events or changes in circumstances indicate that the
carrying amount may not be recoverable. An impairment loss is recognised for
the amount by which the asset's carrying amount exceeds its recoverable
amount. The recoverable amount is the higher of an asset's fair value less
costs to sell and value in use. For the purposes of assessing impairment,
assets are grouped at the lowest levels for which there are separately
identifiable cash flows (cash generating units). Non-financial assets that
suffered impairment are reviewed for possible reversal of the impairment at
each reporting date.
2.11. Financial assets
(a) Classification
The Group classifies its financial assets at amortised cost and at fair value
through the profit or loss. The classification depends on the purpose for
which the financial assets were acquired. Management determines the
classification of its financial assets at initial recognition.
(b) Recognition and measurement
Amortised cost
Regular purchases and sales of financial assets are recognised on the trade
date at cost - the date on which the Group commits to purchasing or selling
the asset. Financial assets are derecognized when the rights to receive cash
flows from the assets have expired or have been transferred, and the Group has
transferred substantially all of the risks and rewards of ownership.
Fair value through the profit or loss
Financial assets that do not meet the criteria for being measured at amortised
cost or FVTOCI are measured at FVTPL.The Group holds equity instruments that
are classified as FVTPL as these were acquired principally for the purpose of
selling in the near term.
Financial assets at FTVPL, are measured at fair value at the end of each
reporting period, with any fair value gains or losses recognised in profit or
loss. Fair value is determined by using market observable inputs and data as
far as possible. Inputs used in determining fair value measurements are
categorised into different levels based on how observable the inputs used in
the valuation technique utilised are (the 'fair value hierarchy'):
- Level 1: Quoted prices in active markets for identical items (unadjusted)
- Level 2: Observable direct or indirect inputs other than Level 1 inputs
- Level 3: Unobservable inputs (i.e. not derived from market data).
The classification of an item into the above levels is based on the lowest
level of the inputs used that has a significant effect on the fair value
measurement of the item. Transfers of items between levels are recognised in
the period they occur.
The Group measures its investments in quoted shares using the quoted market
price.
(c) Impairment of financial assets
The Group recognises an allowance for expected credit losses (ECLs) for all
debt instruments not held at fair value through profit or loss. ECLs are based
on the difference between the contractual cash flows due in accordance with
the contract and all the cash flows that the Group expects to receive,
discounted at an approximation of the original EIR. The expected cash flows
will include cash flows from the sale of collateral held or other credit
enhancements that are integral to the contractual terms.
ECLs are recognised in two stages. For credit exposures for which there has
not been a significant increase in credit risk since initial recognition, ECLs
are provided for credit losses that result from default events that are
possible within the next 12-months (a 12-month ECL). For those credit
exposures for which there has been a significant increase in credit risk since
initial recognition, a loss allowance is required for credit losses expected
over the remaining life of the exposure, irrespective of the timing of the
default (a lifetime ECL).
For trade receivables (not subject to provisional pricing) and other
receivables due in less than 12 months, the Group applies the simplified
approach in calculating ECLs, as permitted by IFRS 9. Therefore, the Group
does not track changes in credit risk, but instead, recognises a loss
allowance based on the financial asset's lifetime ECL at each reporting date.
The Group considers a financial asset in default when contractual payments are
90 days past due. However, in certain cases, the Group may also consider a
financial asset to be in default when internal or external information
indicates that the Group is unlikely to receive the outstanding contractual
amounts in full before taking into account any credit enhancements held by the
Group. A financial asset is written off when there is no reasonable
expectation of recovering the contractual cash flows and usually occurs when
past due for more than one year and not subject to enforcement activity.
At each reporting date, the Group assesses whether financial assets carried at
amortised cost are credit impaired. A financial asset is credit-impaired when
one or more events that have a detrimental impact on the estimated future cash
flows of the financial asset have occurred.
(d) Derecognition
The Group derecognises a financial asset only when the contractual rights to
the cash flows from the asset expire, or when it transfers the financial asset
and substantially all the risks and rewards of ownership of the asset to
another entity.
On derecognition of a financial asset measured at amortised cost, the
difference between the asset's carrying amount and the sum of the
consideration received and receivable is recognised in profit or loss. This is
the same treatment for a financial asset measured at FVTPL.
2.12. Financial liabilities
Financial liabilities are classified, at initial recognition, as financial
liabilities at fair value through profit or loss, loans and borrowings,
payables, or as derivatives designated as hedging instruments in an effective
hedge, as appropriate. All financial liabilities are recognised initially at
fair value and, in the case of loans and borrowings and payables, net of
directly attributable transaction costs. The Group's financial liabilities
include trade and other payables and loans.
Subsequent measurement
The measurement of financial liabilities depends on their classification, as
described below:
Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include financial
liabilities held for trading and financial liabilities designated upon initial
recognition as at fair value through profit or loss. Financial liabilities are
classified as held for trading if they are incurred for the purpose of
repurchasing in the near term. This category also includes derivative
financial instruments entered into by the Group that are not designated as
hedging instruments in hedge relationships as defined by IFRS 9. Separated
embedded derivatives are also classified as held for trading unless they are
designated as effective hedging instruments. Gains or losses on liabilities
held for trading are recognised in the statement of profit or loss and other
comprehensive income.
Trade and other payables
After initial recognition, trade and other payables are subsequently measured
at amortised cost using the EIR method. Gains and losses are recognised in the
statement of profit or loss and other comprehensive income when the
liabilities are derecognised, as well as through the EIR amortisation process.
Amortised cost is calculated by taking into account any discount or premium on
acquisition and fees or costs that are an integral part of the EIR. The EIR
amortisation is included as finance costs in the statement of profit or loss
and other comprehensive income.
Derecognition
A financial liability is derecognised when the associated obligation is
discharged or cancelled or expires.
When an existing financial liability is replaced by another from the same
lender on substantially different terms, or the terms of an existing liability
are substantially modified, such an exchange or modification is treated as the
derecognition of the original liability and the recognition of a new
liability. The difference in the respective carrying amounts is recognised in
profit or loss and other comprehensive income.
Liabilities within the scope of IFRS 9 are classified as financial liabilities
at fair value through profit and loss or other liabilities, as appropriate.
A financial liability is derecognised when the obligation under the liability
is discharged or cancelled or expires.
Financial liabilities included in trade and other payables are recognised
initially at fair value and subsequently at amortised cost.
2.13. Leases
Assets and liabilities arising from a lease are initially measured on a
present value basis. Lease liabilities include the net present value of the
following lease payments:
· Fixed payments, less any lease incentives receivable;
· Variable lease payment that are based on an index or a rate,
initially measured using the index or the rate as at the commencement date;
· The exercise price of a purchase option; and
· Payment of penalties for terminating the lease.
Lease payments to be made under reasonably certain extension options are also
included in the measurement of the liability. The lease payments are
discounted using the interest rate implicit in the lease. If that rate cannot
be readily determined, the lessee's incremental borrowing rate is used, being
the rate that the lessee would have to pay to borrow the funds necessary to
obtain an asset of similar value to the right-ofuse asset in a similar
economic environment with similar terms, security and conditions. Lease
payments are allocated between principal and finance cost. The finance cost is
charged to profit or loss over the lease period so as to produce a constant
periodic rate of interest on the remaining balance of the liability for each
period.
Assets obtained under finance leases are depreciated over their useful lives.
Rent payable under operating leases on which the short term exemption has been
taken, less any lease incentives received, is charged to the income statement
on a straight-line basis over the term of the relevant lease except where
another more systematic basis is more representative of the time pattern in
which economic benefits from the lease asset are consumed.
2.14. Cash and cash equivalents
Cash and cash equivalents comprise cash at bank and in hand.
2.15. Equity
Equity comprises the following:
· "Share capital" represents the nominal value of the Ordinary shares;
· "Share Premium" represents consideration less nominal value of issued
shares and costs directly attributable to the issue of new shares;
· "Other reserves" represents the merger reserve, foreign currency
translation reserve, redemption reserve and share option reserve where;
o "Merger reserve" represents the difference between the fair value of an
acquisition and the nominal value of the shares allotted in a share exchange;
o "Foreign currency translation reserve" represents the translation
differences arising from translating the financial statement items from
functional currency to presentational currency;
o "Reverse acquisition reserve" represents a non-distributable reserve
arising on the acquisition of Finland Investments Limited;
o "Redemption reserve" represents a non-distributable reserve made up of
share capital;
o "Share option reserve" represents share options awarded by the group;
· "Retained earnings" represents retained losses.
2.16. Share capital, share premium and deferred shares
Ordinary shares are classified as equity. Incremental costs directly
attributable to the issue of new shares or options are shown in equity, as a
deduction, net of tax, from the proceeds provided there is sufficient premium
available. Should sufficient premium not be available placing costs are
recognised in the Income Statement.
Deferred shares are classified as equity. Deferred shares have no rights to
receive dividends, or to attend or vote at general meetings of the Company and
are only entitled to a return of capital after payment to holders of new
ordinary shares of £100,000 per each share held.
2.17. Share based payments
The Group operates a number of equity-settled, share-based schemes, under
which the Group receives services from employees or third party suppliers as
consideration for equity instruments (options and warrants) of the Group. The
fair value of the third party suppliers' services received in exchange for the
grant of the options is recognised as an expense in the Income Statement or
charged to equity depending on the nature of the service provided. The value
of the employee services received is expensed in the Income Statement and its
value is determined by reference to the fair value of the options granted:
· including any market performance conditions;
· excluding the impact of any service and non-market performance
vesting conditions (for example, profitability or sales growth targets, or
remaining an employee of the entity over a specified time period); and
· including the impact of any non-vesting conditions (for example, the
requirement for employees to save).
The fair value of the share options and warrants are determined using the
Black Scholes valuation model.
Non-market vesting conditions are included in assumptions about the number of
options that are expected to vest. The total expense or charge is recognised
over the vesting period, which is the period over which all of the specified
vesting conditions are to be satisfied. At the end of each reporting period,
the entity revises its estimates of the number of options that are expected to
vest based on the non-market vesting conditions. It recognises the impact of
the revision to original estimates, if any, in the Income Statement or equity
as appropriate, with a corresponding adjustment to a separate reserve in
equity.
When the options are exercised, the Group issues new shares. The proceeds
received, net of any directly attributable transaction costs, are credited to
share capital (nominal value) and share premium when the options are
exercised.
2.18. Taxation
No current tax is yet payable in view of the losses to date.
Deferred tax is recognised for using the liability method in respect of
temporary differences arising from differences between the carrying amount of
assets and liabilities in the consolidated financial statements and the
corresponding tax bases used in the computation of taxable profit. However,
deferred tax liabilities are not recognised if they arise from the initial
recognition of goodwill; deferred tax is not accounted for if it arises from
initial recognition of an asset or liability in a transaction other than a
business combination that at the time of the transaction affects neither
accounting nor taxable profit or loss.
In principle, deferred tax liabilities are recognised for all taxable
temporary differences and deferred tax assets (including those arising from
investments in subsidiaries), are recognised to the extent that it is probable
that taxable profits will be available against which deductible temporary
differences can be utilised.
Deferred income tax assets are recognised on deductible temporary differences
arising from investments in subsidiaries only to the extent that it is
probable the temporary difference will reverse in the future and there is
sufficient taxable profit available against which the temporary difference can
be used.
Deferred tax liabilities are recognised for taxable temporary differences
arising on investments in except where the Group is able to control the
reversal of the temporary difference and it is probable that the temporary
difference will not reverse in the foreseeable future.
Deferred tax assets and liabilities are offset when there is a legally
enforceable right to offset current tax assets against current tax liabilities
and when the deferred tax assets and liabilities relate to income taxes levied
by the same taxation authority on either the same taxable entity or different
taxable entities where there is an intention to settle the balances on a net
basis.
Deferred tax is calculated at the tax rates (and laws) that have been enacted
or substantively enacted by the statement of financial position date and are
expected to apply to the period when the deferred tax asset is realised or the
deferred tax liability is settled.
Deferred tax assets and liabilities are not discounted.
3. Financial risk management
3.1. Financial risk factors
The Group's activities expose it to a variety of financial risks: market risk
(foreign currency risk, price risk and interest rate risk), credit risk and
liquidity risk. The Group's overall risk management programme focuses on the
unpredictability of financial markets and seeks to minimise potential adverse
effects on the Group's financial performance. None of these risks are hedged.
Risk management is carried out by the London based management team under
policies approved by the Board of Directors.
Market risk
(a) Foreign currency risk
The Group operates internationally and is exposed to foreign exchange risk
arising from various currency exposures, primarily with respect to the Euro,
Danish Krone and the British Pound. Foreign exchange risk arises from future
commercial transactions, recognised assets and liabilities and net investments
in foreign operations.
The Group negotiates all material contracts for activities in relation to its
subsidiaries in either British Pounds, Euros, USD or Danish Krone. The Group
does not hedge against the risks of fluctuations in exchange rates. The volume
of transactions is not deemed sufficient to enter into forward contracts as
most of the foreign exchange movements result from the retranslation of inter
company loans. The Group has sensitised the figures for fluctuations in
foreign exchange rates, as the Directors acknowledge that, at the present
time, the foreign exchange retranslations have resulted in rather higher than
normal fluctuations which are separately disclosed, and is predominantly due
to the exceptional nature of the Euro exchange rate in the last two years in
the current economic climate. Further detail is in note 3.3
(b) Price risk
The Group is not exposed to commodity price risk as a result of its
operations, which are still in the exploration phase. The Directors will
revisit the appropriateness of this policy should the Group's operations
change in size or nature.
The Group has exposure to equity securities price risk, as it holds listed
equity investments.
Credit risk
Credit risk arises from cash and cash equivalents as well as outstanding
receivables. Management does not expect any losses from non-performance of
these receivables. The amount of exposure to any individual counter party is
subject to a limit, which is assessed by the Board.
The Group considers the credit ratings of banks in which it holds funds in
order to reduce exposure to credit risk.
Liquidity risk
In keeping with similar sized mineral exploration groups, the Group's
continued future operations depend on the ability to raise sufficient working
capital through the issue of equity share capital or debt. The Directors are
reasonably confident that adequate funding will be forthcoming with which to
finance operations. Controls over expenditure are carefully managed.
With exception to deferred taxation, financial liabilities are all due within
one year.
3.2. Capital risk management
The Group's objectives when managing capital are to safeguard the Group's
ability to continue as a going concern, to enable the Group to continue its
exploration and evaluation activities, and to maintain an optimal capital
structure to reduce the cost of capital. In order to maintain or adjust the
capital structure, the Group may adjust the issue of shares or sell assets to
reduce debts.
At 31 December 2021 the Group had borrowings of £nil (31 December 2020:
£nil) and defines capital based on the total equity of the Company. The Group
monitors its level of cash resources available against future planned
exploration and evaluation activities and may issue new shares in order to
raise further funds from time to time.
Given the Group's level of debt versus its cash at bank and cash equivalents,
the gearing ratio is immaterial.
3.3. Sensitivity analysis
On the assumption that all other variables were held constant, and in respect
of the Group and the Company's expenses the potential impact of a 10%
increase/decrease in the UK Sterling:Euro and UK Sterling:DKK Foreign exchange
rates on the Group's loss for the period and on equity is as follows:
Potential impact on Euro expenses: 2021 (Loss)/profit before tax for the year ended Equity before tax for the year ended
31 December 2021 31 December 2021
Group Company Group Company
Increase/(decrease) in foreign exchange rate £ £ £ £
10% (2,500,119) (3,486,819) 32,660,976 37,273,943
-10% (2,482,004) (3,486,819) 30,817,450 37,273,943
Potential impact on DKK expenses: 2021 Loss before tax for the year ended Equity before tax for the year ended
31 December 2021 31 December 2021
Group Company Group Company
Increase/(decrease) in foreign exchange rate £ £ £ £
10% (2,599,449) (3,486,819) 33,704,713 37,273,943
-10% (2,382,675) (3,486,819) 29,773,713 37,273,943
4. Critical accounting estimates and judgements
The preparation of the Financial Statements in conformity with IFRS requires
management to make estimates and assumptions that affect the reported amounts
of assets and liabilities and disclosure of contingent assets and liabilities
at the date of the financial statements and the reported amount of expenses
during the period. Actual results may vary from the estimates used to produce
these Financial Statements.
Estimates and judgements are regularly evaluated and are based on historical
experience and other factors, including expectations of future events that are
believed to be reasonable under the circumstances.
Items subject to such estimates and assumptions, that have a significant risk
of causing a material adjustment to the carrying amounts of assets and
liabilities within the next financial years, include but are not limited to:
Impairment of intangible assets - exploration and evaluation costs
Exploration and evaluation costs have a carrying value at 31 December 2021 of
£28,111,021 (2020: £26,768,227) Such assets have an indefinite useful life
as the Group has a right to renew exploration licences and the asset is only
amortised once extraction of the resource commences. Management tests for
impairment annually whether exploration projects have future economic value in
accordance with the accounting policy stated in Note 2.7. Each exploration
project is subject to an annual review by either a consultant or senior
company geologist to determine if the exploration results returned during the
period warrant further exploration expenditure and have the potential to
result in an economic discovery. This review takes into consideration long
term metal prices, anticipated resource volumes and supply and demand outlook.
In the event that a project does not represent an economic exploration target
and results indicate there is no additional upside a decision will be made to
discontinue exploration; an impairment charge will then be recognised in the
Income Statement.
Useful economic lives of property, plant and equipment
The annual depreciation charge for property, plant and equipment is sensitive
to changes in the estimated useful economic lives and residual values of the
assets, taking into account that the assets are not used throughout the whole
year due to the seasonality of the licence locations. The useful economic
lives and residual values are re-assessed annually. They are amended when
necessary to reflect current estimates, based on economic utilisation and the
physical condition of the assets. See note 6 for the carrying amount of the
property plant and equipment and note 2.9 for the useful economic lives for
each class of assets.
Share based payment transactions
The Group has made awards of options and warrants over its unissued share
capital to certain Directors as part of their remuneration package. Certain
warrants have also been issued to shareholders as part of their subscription
for shares and suppliers for various services received. No share options or
warrants were issued in the current year.
The valuation of these options and warrants involves making a number of
critical estimates relating to price volatility, future dividend yields,
expected life of the options and forfeiture rates. These assumptions have been
described in more detail in Note 16.
5. Segment information
Management has determined the operating segments based on reports reviewed by
the Board of Directors that are used to make strategic decisions. During the
period the Group had interests in three geographical segments; the United
Kingdom, Greenland and Finland. Activities in the UK are mainly administrative
in nature whilst the activities in Greenland and Finland relate to exploration
and evaluation work.
The Group had no turnover during the period.
2021 Greenland Finland UK Total
£ £ £ £
Revenue - - - -
Administrative expenses 550,576 88,335 2,023,135 2,662,046
Foreign exchange 31,404 - (13,169) 18,235
Finance expense 2,055 1,795 401 4,251
Other income 30,105 155,540 1,500 187,145
Loss before tax per reportable segment 1,291,644 90,575 1,324,614 2,706,833
Additions to PP&E 3,604 - 22,433 26,037
Additions to intangible asset 2,668,436 218,674 - 2,887,110
Reportable segment assets 25,257,377 4,777,642 2,620,650 32,655,669
2020 Greenland Finland UK Total
£ £ £ £
Revenue - - - -
Administrative expenses 616,555 81,831 1,788,719 2,487,105
Foreign exchange 49,380 - 15,638 65,018
Finance income 3,511 (17) (1,526) 1,968
Other income 23,613 13,336 - 36,949
Loss before tax per reportable segment 632,639 39,760 1,815,164 2,487,563
Tax refund - - 229,963 229,963
Additions to PP&E 226,523 - 17,331 243,854
Additions to intangible asset 2,049,686 421,450 - 2,471,136
Reportable segment assets 25,088,651 4,903,362 6,856,661 36,848,674
6. Property, plant and equipment
Group
Right of use assets Software Machinery & equipment Office equipment Total
£ £ £ £ £
Cost
As at 1 January 2020 182,542 37,093 3,255,384 52,931 3,527,950
Exchange Differences - - 192,414 182 192,596
Additions - 9,221 226,523 8,110 243,854
As at 31 December 2020 182,542 46,314 3,674,321 61,223 3,964,400
As at 1 January 2021 182,542 46,314 3,674,321 61,223 3,964,400
Exchange Differences - - (224,094) 2 (224,092)
Additions - 7,503 3,604 14,930 26,037
Disposals (182,542) - (250,093) - (432,635)
As at 31 December 2021 - 53,817 3,203,738 76,155 3,333,710
Depreciation
As at 1 January 2020 40,565 25,272 665,389 28,301 759,527
Charge for the year 81,130 11,089 502,650 11,716 606,585
Exchange differences - - 41,232 145 41,377
As at 31 December 2020 121,695 36,361 1,209,271 40,162 1,407,489
As at 1 January 2021 121,695 36,361 1,209,271 40,162 1,407,489
Charge for the year 60,847 9,020 377,068 13,778 460,713
Disposals (182,542) - (70,848) - (253,390)
Exchange differences - - (83,481) - (83,481)
As at 31 December 2021 - 45,381 1,432,010 53,940 1,531,331
Net book value as at 31 December 2020 60,847 9,953 2,465,050 21,061 2,556,911
Net book value as at 31 December 2021 - 8,436 1,771,728 22,215 1,802,379
Depreciation expense of £460,713 (31 December 2020: £606,585) for the Group
has been charged in administration expenses.
Company
Right of use assets Software Office equipment Total
£ £ £ £
Cost
As at 1 January 2020 182,542 37,093 45,832 265,467
Additions - 9,221 8,110 17,331
As at 31 December 2020 182,542 46,314 53,942 282,798
As at 1 January 2021 182,542 46,314 53,942 282,798
Additions - 7,503 14,930 22,433
Disposals (182,542) - - (182,542)
As at 31 December 2021 - 53,817 68,873 122,689
Depreciation
As at 1 January 2020 40,565 25,272 21,791 87,628
Charge for the year 81,130 11,089 11,088 103,307
As at 31 December 2020 121,695 36,361 32,879 190,935
As at 1 January 2021 121,695 36,361 32,879 190,935
Charge for the year 60,847 9,020 13,778 83,645
Disposals (182,542) - - (182,542)
As at 31 December 2021 - 45,381 46,657 92,038
Net book value as at 31 December 2020 60,847 9,953 21,062 91,862
Net book value as at 31 December 2021 - 8,436 22,215 30,651
Depreciation expense of £83,645 (31 December 2020: £103,307) for the Company
has been charged in administration expenses.
7. Intangible assets
Intangible assets comprise exploration and evaluation costs. Exploration and
evaluation assets are all internally generated. These are measured at cost and
have an indefinite asset life. Once the pre-production phase has been entered
into, the exploration and evaluation assets will cease to be capitalised and
commence amortisation.
Group
Exploration & Evaluation Assets - Cost and Net Book Value 31 December 31 December
2021 2020
£ £
Cost
As at 1 January 35,641,812 32,012,092
Additions 2,887,110 2,471,136
Exchange differences (1,732,748) 1,158,584
As at year end 36,796,174 35,641,812
Provision for impairment
As at 1 January 8,873,585 8,873,585
Impairments - -
As at year end 8,873,585 8,873,585
Net book value 27,922,589 26,768,227
The Dundas project in Greenland has a current JORC compliant mineral resource
of 117 million tonnes at 6.1% ilmenite (in-situ) and has been confirmed as the
highest-grade mineral sand ilmenite project globally. Exploration projects in
Finland and the Disko project in Greenland are at an early stage of
development and there are no JORC (Joint Ore Reserves Committee) or non-JORC
compliant resource estimates available to enable value in use calculations to
be prepared. The Directors therefore undertook an assessment of the following
areas and circumstances that could indicate the existence of impairment:
• The Group's right to explore in an area has expired, or will expire
in the near future without renewal;
• No further exploration or evaluation is planned or budgeted for;
• A decision has been taken by the Board to discontinue exploration and
evaluation in an area due to the absence of a commercial level of reserves; or
• Sufficient data exists to indicate that the book value will not be
fully recovered from future development and production.
Following their assessment, the Directors concluded that no impairment charge
was required at 31 December 2021.
8. Investments in subsidiary undertakings
Company
31 December 31 December
2021 2020
£ £
Shares in Group Undertakings
At beginning of period 558,342 558,342
At end of period 558,342 558,342
Loans to Group undertakings 33,950,980 32,609,750
Total 34,509,322 33,168,092
Investments in Group undertakings are stated at cost, which is the fair value
of the consideration paid, less any impairment provision.
Subsidiaries
Name of subsidiary Registered office address Country of incorporation and place of business Proportion of ordinary shares held by parent (%) Proportion of ordinary shares held by the Group (%) Nature of business
Centurion Mining Limited Suite 1, 15 Ingestre Place, London, England, W1F 0DU United Kingdom 100% 100% Dormant
Centurion Universal Limited Suite 1, 15 Ingestre Place, London, England, W1F 0DU United Kingdom 100% 100% Holding
Finland Investments Limited Suite 1, 15 Ingestre Place, London, England, W1F 0DU United Kingdom 100% 100% Holding
FinnAust Mining Finland Oy Kummunkatu 23, Finland Nil 100% Exploration
FI-83500 Outokumpu, Finland
FinnAust Mining Northern Oy Kummunkatu 23, Finland Nil 100% Exploration
FI-83500 Outokumpu, Finland
Disko Exploration Limited Suite 1, 15 Ingestre Place, London, England, W1F 0DU United Kingdom 100% 100% Exploration
Dundas Titanium A/S c/o Nuna Advokater ApS, Qullilerfik 2, 6, Postboks 59, Nuuk 3900, Greenland Greenland Nil 100% Exploration
All subsidiary undertakings are included in the consolidation.
The proportion of the voting rights in the subsidiary undertakings held
directly by the parent company do not differ from the proportion of ordinary
shares held.
9. Trade and other receivables
Group Company
Current 31 December 31 December 31 December 31 December
2021 2020 2021 2020
£ £ £ £
Trade receivables 4,300 317,502 4,306 4,620
Amounts owed by Group undertakings - - 484,476 172,400
Prepayments 75,187 99,353 70,239 96,040
VAT receivable 82,858 794,532 - 737,059
Other receivables 66,564 292,509 5,160 237,966
Total 228,909 1,503,896 564,181 1,248,085
The fair value of all receivables is the same as their carrying values stated
above.
At 31 December 2021 all trade and other receivables were fully performing. No
ageing analysis is considered necessary as the Group has no significant trade
receivable receivables which would require such an analysis to be disclosed
under the requirements of IFRS 7.
The carrying amounts of the Group and Company's trade and other receivables
are denominated in the following currencies:
Group Company
31 December 31 December 31 December 31 December
2021 2020 2021 2020
£ £ £ £
UK Pounds 94,946 1,039,017 564,181 1,248,085
Euros 106,173 71,770 - -
Danish Krone 27,790 393,109 - -
228,909 1,503,896 564,181 1,248,085
The maximum exposure to credit risk at the reporting date is the carrying
value of each class of receivable mentioned above. The Group does not hold any
collateral as security.
10. Cash and cash equivalents
Group Company
31 December 31 December 31 December 31 December
2021 2020 2021 2020
£ £ £ £
Cash at bank and in hand 2,701,792 5,942,848 2,534,964 5,649,030
All of the UK entities cash at bank is held with institutions with an AA-
credit rating. The Finland and Greenland entities cash at bank is held with
institutions whose credit rating is unknown.
The carrying amounts of the Group and Company's cash and cash equivalents are
denominated in the following currencies:
Group Company
31 December 31 December 31 December 31 December
2021 2020 2021 2020
£ £ £ £
UK Pounds 2,571,644 5,668,404 2,534,964 5,649,030
Euros 85,168 240,283 - -
Danish Krone 44,980 34,161 - -
2,701,792 5,942,848 2,534,964 5,649,030
11. Trade and other payables
Group Company
31 December 31 December 31 December 31 December
2021 2020 2021 2020
£ £ £ £
Trade payables 409,282 377,026 250,928 78,448
Accrued expenses 131,048 350,576 60,676 83,764
Other creditors 90,503 452,092 53,571 13,716
630,833 1,179,694 365,175 175,928
Trade payables include amounts due of £225,538 in relation to exploration and
evaluation activities.
The carrying amounts of the Group and Company's trade and other payables are
denominated in the following currencies:
Group Company
31 December 31 December 31 December 31 December
2021 2020 2021 2020
£ £ £ £
UK Pounds 351,688 231,456 365,175 175,928
Euros 173,781 529,326 - -
Danish Krone 105,364 418,912 - -
630,833 1,179,694 365,175 175,928
12. Deferred tax
An analysis of deferred tax liabilities is set out below.
Group Company
2021 2020 2021 2020
£ £ £ £
Deferred tax liabilities
- Deferred tax liability after more than 12 months 496,045 496,045 - -
Deferred tax liabilities 496,045 496,045 - -
The Group has additional capital losses of approximately £8,704,033 (2020:
£8,793,930) and other losses of approximately £7,234,636 (2020:
£6,719,484) available to carry forward against future taxable profits. No
deferred tax asset has been recognised in respect of these tax losses because
of uncertainty over the timing of future taxable profits against which the
losses may be offset.
13. Financial Instruments by Category
Group 31 December 2021 31 December 2020
Amortised cost Total Amortised cost Total
FVTPL FVTPL
Assets per Statement of Financial Performance £ £ £ £ £ £
Trade and other receivables (excluding prepayments) 153,722 - 153,722 1,404,543 - 1,404,543
Financial assets at fair value through profit or loss - - - - 100,000 100,000
Cash and cash equivalents 2,701,792 - 2,701,792 5,942,848 - 5,942,848
2,855,514 - 2,855,514 7,347,391 100,000 7,447,391
31 December 2021 31 December 2020
Amortised cost Total Amortised Total
cost
Liabilities per Statement of Financial Performance £ £ £ £
Trade and other payables (excluding non-financial liabilities) 630,833 630,833 1,179,690 1,179,690
Finance lease liability - - 62,220 62,220
630,833 630,833 1,241,910 1,241,910
Company
31 December 2021 31 December 2020
Amortised cost Total Amortised cost Total
FVTPL FVTPL
Assets per Statement of Financial Performance £ £ £ £
£ £
Trade and other receivables (excluding prepayments) 493,492 - 493,492 1,152,045 - 1,152,045
Financial assets at fair value through profit or loss - - - - 100,000 100,000
Cash and cash equivalents 2,534,964 - 2,534,964 5,649,030 - 5,649,030
3,028,456 - 3,028,456 6,801,075 100,000 6,901,075
31 December 2021 31 December 2020
At amortised cost Total At amortised Total
cost
Liabilities per Statement of Financial Performance £ £ £ £
Trade and other payables (excluding non-financial liabilities) 365,175 365,175 175,928 175,928
Finance lease liability - - 62,220 62,220
365,175 365,175 238,148 238,148
14. Share capital and premium
Group and Company Number of shares Share capital
31 December 2021 31 December 2020 31 December 2021 31 December 2020
Ordinary shares 972,857,613 971,629,460 97,285 97,162
Deferred shares 558,104,193 558,104,193 558,104 558,104
Deferred A shares 68,289,656,190 68,289,656,190 6,828,966 6,828,966
Total 69,820,617,996 69,819,389,843 7,484,355 7,484,232
Number of Ordinary shares Share capital Share premium Total
Issued at 0.01 pence per share £ £ £
As at 1 January 2020 969,969,397 96,996 55,463,656 55,560,652
Issue of new shares - 10 November 2020 1,660,063 166 156,378 156,544
As at 31 December 2020 971,629,460 97,162 55,620,034 55,717,196
As at 1 January 2021 971,629,460 97,162 55,620,034 55,717,196
Exercise of warrants - 23 December 2021 1,228,153 123 85,848 85,971
As at 31 December 2021 972,857,613 97,285 55,705,882 55,803,167
Deferred Shares (nominal value of 0.1 pence per share) Number of Deferred shares Share capital
£
As at 1 January 2020 558,104,193 558,104
As at 31 December 2020 558,104,193 558,104
As at 1 January 2021 558,104,193 558,104
As at 31 December 2021 558,104,193 558,104
Number of Deferred A shares Share capital
Deferred A Shares (nominal value of 0.1 pence per share) £
As at 1 January 2020 68,289,656,190 6,828,966
As at 31 December 2020 68,289,656,190 6,828,966
As at 1 January 2021 68,289,656,190 6,828,966
As at 31 December 2021 68,289,656,190 6,828,966
On 23 December 2021, the Company issued and allotted 1,228,153 new Ordinary
Shares at a price of 7 pence per share as an exercise of warrants.
15. Share based payments
The Company has established a share option scheme for Directors, employees and
consultants to the Group. Share options and warrants outstanding and
exercisable at the end of the period have the following expiry dates and
exercise prices:
Options & Warrants
Grant Date Expiry Date Exercise price in £ per share 31 December 2021 31 December 2020
17 December 2016 17 December 2021 0.07 - 1,228,153
9 June 2017 9 June 2022 0.165 1,025,000 1,025,000
23 July 2019 23 July 2023 0.10 5,200,000 5,200,000
23 July 2019 23 July 2023 0.15 5,200,000 5,200,000
23 July 2019 23 July 2023 0.20 5,600,000 5,600,000
10 July 2020 30 July 2025 0.10 5,150,000 5,150,000
10 July 2020 30 July 2025 0.15 2,100,000 2,100,000
15 February 2021 15 February 2025 0.15 11,000,000 -
15 February 2021 15 February 2025 0.20 11,000,000 -
15 February 2021 15 February 2025 0.25 11,000,000 -
57,275,000 25,503,153
The Company and Group have no legal or constructive obligation to settle or
repurchase the options or warrants in cash.
The fair value of the share options and warrants was determined using the
Black Scholes valuation model. The parameters used are detailed
below:
2017 Options 2019 Options 2019 Options 2019 Options
Granted on: 9/6/2017 23/7/2019 23/7/2019 23/7/2019
Life (years) 5 years 4 years 4 years 4 years
Share price (pence per share) 15.5p 7.45p 7.45p 7.45p
Risk free rate 0.56% 0.5% 0.5% 0.5%
Expected volatility 31.83% 21.64% 21.64% 21.64%
Expected dividend yield - - - -
Marketability discount 20% 20% 20% 20%
Total fair value (£000) 34 31 5 1
2020 Options 2020 Options 2021 Options 2021 Options
Granted on: 10/7/2020 10/7/2020 15/2/2021 15/2/2021
Life (years) 5 years 5 years 4 years 4 years
Share price (pence per share) 6.16p 6.16p 9.20p 9.20p
Risk free rate 0.5% 0.5% 0.5% 0.5%
Expected volatility 30.24% 30.24% 61.47% 61.47%
Expected dividend yield - - - -
Marketability discount 20% 20% 20% 20%
Total fair value (£000) 31 5 270 213
2021 Options
Granted on: 15/2/2021
Life (years) 4 years
Share price (pence per share) 9.20p
Risk free rate 0.5%
Expected volatility 30.24%
Expected dividend yield -
Marketability discount 20%
Total fair value (£000) 173
The expected volatility of the options is based on historical volatility for
the six months prior to the date of granting.
The risk-free rate of return is based on zero yield government bonds for a
term consistent with the option life.
A reconciliation of options and warrants granted over the year to 31
December 2021 is shown below:
2021 2020
Number Weighted average exercise price (£) Number Weighted average exercise price (£)
Outstanding at beginning of period 25,503,153 0.1556 34,303,153 0.1898
Expired - - (16,050,000) -
Exercised (1,228,153) 0.0700 - -
Granted 33,000,000 0.2000 7,250,000 0.125
Outstanding as at period end 57,275,000 0.1830 25,503,153 0.1556
Exercisable at period end 57,275,000 0.1830 25,503,153 0.1556
2021 2020
Range of exercise prices (£) Weighted average exercise price (£) Number of shares Weighted average remaining life expected (years) Weighted average remaining life contracted (years) Weighted average exercise price (£) Number of shares Weighted average remaining life expected (years) Weighted average remaining life contracted (years)
0 - 0.05 - - - - - - - -
0.05 - 2.00 0.1830 57,275,000 3.18 3.18 0.1574 25,503,153 3.68 3.68
During the period there was a charge of £655,870 (2020: £35,872) in respect
of share options.
16. Other reserves
Group
Merger reserve Foreign currency translation reserve Reverse acquisition reserve Redemption reserve Share option reserve Total
£ £ £ £ £ £
At 31 December 2020 166,000 1,205,544 (8,071,001) 364,630 114,108 (6,220,719)
Currency translation differences - (1,640,140) - - - (1,640,140)
Expired Options - - - - (8,285) (8,285)
Issued Options - - - - 655,870 655,870
At 31 December 2021 166,000 (434,596) (8,071,001) 364,630 761,693 (7,213,274)
17. Employee benefit expense
Group Company
Staff costs (excluding Directors) Year ended Year ended Year ended Year ended
31 December 31 December 31 December 31 December
2021 2020 2021 2020
£ £ £ £
Salaries and wages 369,708 597,146 360,134 317,044
Social security costs 99,068 69,984 64,356 40,011
Retirement benefit costs 2,049 6,621 2,049 6,098
Other employment costs 27,425 523 2,093 523
498,250 674,274 428,632 363,676
The average monthly number of employees for the Group during the year was 11
(year ended 31 December 2020: 13) and the average monthly number of employees
for the Company was 7 (year ended 31 December 2020: 9).
Of the above Group staff costs, £245,743 (year ended 31 December 2020:
£455,385) has been capitalised in accordance with IFRS 6 as exploratory
related costs and are shown as an intangible addition in the year.
18. Directors' remuneration
Year ended 31 December 2021
Short-term benefits Post-employment benefits Share based payments Total
£ £ £ £
Executive Directors
Roderick McIllree 196,534 18,500 - 215,034
Bo Stensgaard 221,800 - 238,498 460,298
Non-executive Directors
Ian Henderson (1) 12,879 - - 12,879
Johannus Hansen (2) 23,309 - - 23,309
Peter Waugh 24,000 533 - 24,533
Michael Hutchinson 38,750 - - 38,750
517,272 19,033 238,498 774,803
(1) Resigned on 5 January 2021
(2) Appointed on 15 March 2021
Of the above Group directors' remuneration, £338,296 (31 December 2020:
£123,683) has been capitalised in accordance with IFRS 6 as exploratory
related costs and are shown as an intangible addition in the year
The above figures do not include employer portion of NIC. These have been
included in note 17.
Year ended 31 December 2020
Short-term benefits Post-employment benefits Share based payments Total
£ £ £ £
Executive Directors
Roderick McIllree 53,391 2,421 - 55,812
Bo Stensgaard 106,250 - - 106,250
Non-executive Directors
Ian Henderson 38,750 - - 38,750
Peter Waugh 18,600 867 - 19,467
Michael Hutchinson 90,375 - - 90,375
307,366 3,288 - 310,654
Details of fees paid to Companies and Partnerships of which the Directors
detailed above are Directors and Partners have been disclosed in Note 25.
The remuneration of Directors and key executives is determined by the
remuneration committee having regard to the performance of individuals and
market trends.
19. Finance income
Group
Year ended Year ended
31 December 31 December
2021 2020
£ £
Interest income/(expense) from cash and cash equivalents (4,251) 1,968
Finance Income/(expense) (4,251) 1,968
20. Other gain/(losses)
Group
Year ended Year ended
31 December 31 December
2021 2020
£ £
Other gains 46,072 49,360
Other gain/(losses) 46,072 49,360
21. Income tax expense
No charge to taxation arises due to the losses incurred.
The tax on the Group's loss before tax differs from the theoretical amount
that would arise using the weighted average tax rate applicable to the losses
of the consolidated entities as follows:
Group
Year ended Year ended
31 December 2021 31 December 2020
£ £
Loss before tax (2,491,062) (2,487,562)
Tax at the applicable rate of 20.68% (2020: 21.62%) (515,152) (537,811)
Effects of:
Expenditure not deductible for tax purposes 99,228 153,133
Depreciation in excess of/(less than) capital allowances 89,897 79,656
Net tax effect of losses carried forward 326,027 75,059
Tax (charge)/refund - 229,963
The weighted average applicable tax rate of 20.68% (2020: 21.62%) used is a
combination of the 19% standard rate of corporation tax in the UK, 20% Finnish
corporation tax and 30% Greenlandic corporation tax.
The Group has a potential deferred income tax asset of approximately
£1,285,093 (2020: £959,066) due to tax losses available to carry forward
against future taxable profits. The Company has tax losses of approximately
£7,234,636 (2020: £6,719,484) available to carry forward against future
taxable profits. No deferred tax asset has been recognised on accumulated tax
losses because of uncertainty over the timing of future taxable profits
against which the losses may be offset.
22. Earnings per share
Group
The calculation of the total basic earnings per share of (0.28) pence (31
December 2020: (0.23) pence) is based on the loss attributable to equity
holders of the parent company of £2,706,833 (31 December 2020: £2,257,600)
and on the weighted average number of ordinary shares of 971,659,743 (31
December 2020: 970,205,253) in issue during the year.
In accordance with IAS 33, basic and diluted earnings per share are identical
for the Group as the effect of the exercise of share options would be to
decrease the earnings per share. Details of share options that could
potentially dilute earnings per share in future periods are set out in Note
15.
23. Expenses by nature
Group
Year ended Year ended
31 December 31 December
2021 2020
£ £
Cost of Sales
Exploitation licence fees 199,844 -
Total cost of sales 199,844 -
Administrative expenses
Employee expenses 438,982 367,891
Establishment expenses 89,137 72,010
Travel & subsistence 38,082 111,954
Professional & consultancy fees 692,470 970,021
IT & Software 19,612 20,366
Insurance 75,548 73,192
Depreciation 460,713 606,585
Share Option expense 655,870 35,872
Payments to acquire royalties - 200,000
Other expenses 191,632 52,929
Total administrative expenses 2,662,046 2,510,820
Services provided by the Company's auditor and its associates
During the year, the Group (including overseas subsidiaries) obtained the
following services from the Company's auditors and its associates:
Group
Year ended 31 December Year ended 31 December
2021 2020
£ £
Fees payable to the Company's auditor and its associates for the audit of the 58,004 69,375
Parent Company and Consolidated Financial Statements
Fees payable to the Company's auditor for other services 11,385 47,540
24. Commitments
License commitments
Bluejay now owns 11 mineral exploration licenses and one exploitation licence
in Greenland. Licence 2015/08, 2020/114 and 2021/08 is a part of the Dundas
project and licences 2011/31, 2012/29, 2017/01, 2018/16, 2019/116, 2020/03,
2020/06, 2020/10 and 2020/22 are part of the Disko projects in Greenland.
These licences include commitments to pay annual licence fees and minimum
spend requirements.
As at 31 December 2021 these are as follows:
Group
Group License fees Minimum spend requirement Total
£ £ £
Not later than one year 128,313 1,900,420 2,028,733
Later than one year and no later than five years 299,261 24,546,462 24,845,723
Total 427,574 26,446,882 26,874,456
25. Related party transactions
Loans to Group undertakings
Amounts receivable as a result of loans granted to subsidiary undertakings are Company
as follows:
31 December 31 December
2021 2020
£ £
Finland Investments Ltd - -
FinnAust Mining Finland Oy 7,311,625 7,474,317
Centurion Mining Limited 345 345
Dundas Titanium A/S 23,462,907 22,719,222
Disko Exploration Limited 3,176,103 2,415,191
At 31 December (Note 9) 33,950,980 32,609,075
Loans granted to subsidiaries have increased during the year due to additional
loans being granted to the subsidiaries, and foreign exchange gain of
£2,190,977, given that no loans were repaid during the year.
These amounts are unsecured and repayable in Euros and Danish Krone on demand
from the Company.
All intra Group transactions are eliminated on consolidation.
Other transactions
The Group defines its key management personnel as the Directors of the Company
as disclosed in the Directors' Report.
PMW Consultancy Services, operated by Peter Waugh as a sole trader, was paid a
fee of £50,000 for the year ended 31 December 2021 (31 December 2020:
£40,000) for consulting services to the Company. There was a balance of £nil
owing at year end (31 December 2020: £nil).
26. Ultimate controlling party
The Directors believe there is no ultimate controlling party.
27. Events after the reporting date
On 27 January 2022, the Company appointed Eric Sondergaard as a Non-Executive
Director to the board.
On 24 March 2022, the Company raised £5,400,000 via the issue and allotment
of 76,857,134 new Ordinary Shares at a price of 7 pence per share. As part of
this placing, there was director dealings of £120,000.
For further information please visit http://www.bluejaymining.com
(http://www.bluejaymining.com/) or contact:
Roderick McIllree/ Kevin Sheil Bluejay Mining plc enquiry@bluejaymining.com
Ewan Leggat/ Adam Cowl SP Angel Corporate Finance LLP (Nominated Adviser) +44 (0) 20 3470 0470
Andrew Chubb Hannam & Partners (Advisory) LLP +44 (0) 20 7907 8500
Tim Blythe/ Megan Ray BlytheRay +44 (0) 20 7138 3205
Notes
Bluejay is listed on the London AIM market and Frankfurt Stock Exchange and
its shares also trade on the OTCQB Market in the US. With multiple projects in
Greenland and Finland, Bluejay has now secured three globally respected
entities as partner, customer, and co-investor on three of its projects,
giving the Company and its shareholders both portfolio and commodity
diversification in high quality jurisdictions.
Bluejay has signed a definitive joint venture agreement with KoBold Metals to
guide exploration for new deposits rich in the critical materials for electric
vehicles (The Disko-Nuussauq Project). Principal investors in KoBold include
Breakthrough Energy Ventures, a climate & technology fund, overseen by
Bill Gates, and whose investors include Michael Bloomberg, Jeff Bezos, and Ray
Dalio. Other investors in KoBold include Andreessen Horowitz, the premier
Silicon Valley venture capital fund and Equinor, the Norwegian state-owned
multinational energy company.
Bluejay's most advanced project is the Dundas Ilmenite Project in Greenland,
which is fully permitted and being developed towards production in the near
term, with preparatory activities scheduled to commence in 2022. Dundas has
a Mineral Resource reported in accordance with the JORC Code of 117Mt at 6.1%
ilmenite and a maiden offshore Exploration Target of between 300Mt and 530Mt
of ilmenite at an average expected grade range of 0.4 - 4.8% ilmenite
in-situ. The Company has agreed a Master Distribution Agreement with a major
Asian conglomerate for up-to 340ktpa of its anticipated 440ktpa annual output.
The Company's strategy is focused on securing financing ahead of commencing
commercial production at Dundas and has appointed a Global Investment Bank as
the lead arranger. This strategy will create a company capable of self-funding
exploration on its current and future projects.
Bluejay holds two additional projects in Greenland - the 692sq km
Kangerluarsuk zinc-lead- silver project ('Kangerluarsuk'), where historical
work has recovered grades of 41% zinc, 9.3% lead and 596 g/t silver and
identified four large-scale drill ready targets; and the 2,025 sq km
Thunderstone project which has the potential to host large-scale base metal
and gold deposits. Bluejay also has a joint-venture agreement with a mining
major at Enonkoski in Finland and has recently signed a binding agreement for
a partial divestment in a fourth Finnish project.
**ENDS**
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. END FR FFFSIEFITLIFRecent news on Bluejay Mining
See all newsREG - Bluejay Mining PLC - Acquisition of Sedimentary Hosted Copper Project
AnnouncementREG - Bluejay Mining PLC - Update on Disko-Nuussuaq Ni-Cu-Co-PGE Project
AnnouncementREG - Bluejay Mining PLC - Expansion of Corporate Strategy
AnnouncementREG - Bluejay Mining PLC - Dundas Ilmenite Resource Update
AnnouncementREG - Bluejay Mining PLC - Holding(s) in Company
Announcement