REG - Botswana Diamonds - Unaudited Interim Statement and Financial Results
19/03/2025 07:00
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RNS Number : 1916B Botswana Diamonds PLC 19 March 2025
19 March 2025
Botswana Diamonds PLC ("Botswana Diamonds", "BOD" or the "the Company")
Unaudited Interim Statement and Financial Results for the Six Months Ended 31
December 2024
It is pleasing to be able to report good news during what has been a tough
period for the diamond industry. Firstly, we have excellent results from our
AI investigation of our huge diamond geology database. This cutting-edge
technology identified seven previously unreported kimberlite anomalies.
This really is a spectacular result.
Many diamond explorers, including ourselves, set out to first find anomalies
that might contain kimberlites which in turn might contain diamonds.
Traditionally early stage prospecting it would take months and big expenditure
and often led to failure in finding anomalies. One of the seven anomalies is
on ground that we already hold. Three more are on open ground, which we have
applied for, and our applications have been accepted. One of these anomalies
has most, if not all, of the characteristics deemed essential to be a
kimberlite discovery. In addition, it is in the Jwaneng region, home to the
world's richest diamond mine producing large quantities of high value
diamonds. Once the license applications are granted, we will undertake ground
surveys to specify likely drill sites.
In effect what we have done is applied cutting edge technology onto a massive,
high-quality database to accelerate a huge amount of advanced diamond
exploration work in a fraction of the usual time - and at a fraction of the
normal cost.
Secondly, the AI analysis has identified a series of polymetallic targets
covering copper, cobalt, silver, zinc and gold. With hindsight this should not
have been a surprise. Botswana is predominately a diamond province and
underexplored for other minerals. As a result of the analysis, we have
applied for eleven prospecting licenses over open ground covering over 7,000
sq kms. The applications have been accepted and we hope to hear shortly that
they have been granted.
Thirdly, we have received, after a long delay, a mining permit over our Thorny
River deposit in South Africa. Let me remind you - Thorny River is a dyke
system close to the mined out Klipspringer mine and the mined out Marsfontein
mine. These dyke systems generally are narrow but can stretch over long
distances. Often, they are high grade with good quality diamonds. Sometimes
dykes can swell out providing what is referred to as a 'Blow'. BOD explored
the Thorny River system over a seven kilometer distance. Two 'Blows' - the
River Blow and the River Extension have been identified, mapped and
feasibility studied. A technical evaluation and a Competent Persons Report
have also previously been carried out
Results summary: Grade
46-74 cpht
Diamond Value US$120-220/ct
Volume 1.2-2.1m
tons
BOD used their exploration permit over the adjacent Marsfontein dumps to
produce diamonds as a proof-of-concept project. Contractors were employed to
run the entire operation with BOD receiving a 15% revenue royalty. The
depression in diamond prices led to the operations being put on Care and
Maintenance. When diamond prices recover the operation will restart.
Markets
The diamond industry is going through tough times, being hit by two events. A
downturn in retail sales and the growth of Lab Grown. The weakness in overall
sales is a cyclical downturn exacerbated by a post-covid surge in luxury
purchases and by the impact of Lab Grown. The market correction may already
have run its course, Lab Grown is a bigger concern. The industry will become
bimodal - basically two distinct segments - value for money lab grown and the
exclusive natural diamond segment. A lab grown is a diamond, but it is made in
an industrial factory - it is cheap and will get cheaper. A Natural diamond is
extremely rare - coming from deep in the ground (280km) to the surface in a
small volcano called a kimberlite pipe. It can be up to 2,500 million years
old!
Comparing a 5-carat natural with a 5 carat lab grown is like comparing a
Ferrari to a Ford Mondeo. Both excellent cars but one has the aura of rarity,
aspiration and fashion. The other is a good car. As more people in the world
enter the middle class they aspire to a certain way of life.
A significant growth in the natural diamond market is females buying for
themselves. As women get wealthier, they have greater disposable income some
of which goes on beautiful things - including diamonds. This is particularly
evident in the United States where quality diamond sales have held up well.
This is already happening in Asia and the middle east.
Other activities
We are focused on Botswana.
KX 36
The KX 36 diamond discovery in the Kalahari Is being maintained. KX 36 is
the sole kimberlite in area. This is very rare as pipes come in clusters. We
obtained ground around the find and have undertaken extensive work which has
produced five drillable targets. We have completed an environmental impact
statement on the targets and have received drill permits for 5 holes, which
will be drilled once funding is obtained.
Maibwe
The Maibwe joint venture was restructured, during the period under review with
the BOD subsidiary, Siseko (BOD 51.7%) increasing their stake to 50% with the
balance held by locals. Maibwe is a collection of licenses south of KX 36.
Earlier drilling produced diamonds in four licenses. The major shareholder, a
now closed Botswana copper company has exited. The next step is a drilling
programme.
Future
This is a very active and exciting time for BOD. The AI analysis has been a
great success. The board are looking at ways to advance our diamond projects
and the new polymetallic projects. We know there is a rush currently on to
access critical minerals, so we are well placed. The diamond market will
recover and there will also be a shortage of natural diamonds in the future -
and this is what we are positioning ourselves for.
John Teeling
Chairman
(18 March 2025)
This release has been approved by James Campbell, Managing Director of
Botswana Diamonds plc, a qualified geologist (Pr.Sci.Nat), a Fellow of the
Southern African Institute of Mining and Metallurgy, the Institute of
Materials, Metals and Mining (UK) and the Geological Society of South Africa
and who has over 35-years' experience in the diamond sector.
This announcement contains inside information for the purposes of Article 7 of
Regulation (EU) 596/2014. The person who arranged for the release of this
announcement on behalf of the Company was James Campbell, Director
A copy of this announcement is available on the Company's website, at
www.botswanadiamonds.co.uk (http://www.botswanadiamonds.co.uk)
ENDS
Enquiries:
Botswana Diamonds PLC
John Teeling, Chairman
+353 1 833 2833
James Campbell, Managing Director
+27 83 457 3724
Jim Finn, Director
+353 1 833 2833
Nominated & Financial Adviser +44 (0) 20 7409 3494
Strand Hanson Limited
Ritchie Balmer
Rory Murphy
David Asquith
Broker +44 (0) 207 374 2212
First Equity Limited
Jason Robertson
Public Relations +44 (0) 207 138 3204
BlytheRay
Megan Ray
Said Izagaren
Teneo
Luke Hogg +353 (0) 1 661 4055
www.botswanadiamonds.co.uk (http://www.botswanadiamonds.co.uk)
Botswana Diamonds plc
Financial Information (Unaudited)
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Six Months Six Months Year
Ended Ended Ended
31 Dec 24 31 Dec 23 30 Jun 2024
unaudited unaudited audited
£'000 £'000 £'000
REVENUE
Royalties - 24 24
Operating expenses - (10) (10)
GROSS PROFIT - 14 14
Administrative expenses (225) (265) (578)
OPERATING LOSS (225) (251) (564)
LOSS BEFORE TAXATION (225) (251) (564)
Income tax expense - - -
LOSS AFTER TAXATION (225) (251) (564)
Exchange difference on translation of foreign operations (1) - 3
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD (226) (251) (561)
LOSS PER SHARE - basic and diluted (0.02p) (0.02p) (0.05p)
CONDENSED CONSOLIDATED BALANCE SHEET 31 Dec 24 31 Dec 23 30 Jun 2024
unaudited unaudited audited
ASSETS: £'000 £'000 £'000
NON-CURRENT ASSETS
Intangible assets 5,586 5,509 5,512
Plant and equipment 207 207 207
5,793 5,716 5,719
CURRENT ASSETS
Other receivables 277 266 276
Cash and cash equivalents 55 334 78
332 600 354
TOTAL ASSETS 6,125 6,316 6,073
LIABILITIES:
CURRENT LIABILITIES
Trade and other payables (970) (870) (937)
TOTAL LIABILITIES (970) (870) (937)
NET ASSETS 5,155 5,446 5,136
EQUITY
Share capital - deferred shares 1,796 1,796 1,796
Share capital - ordinary shares 2,995 2,800 2,800
Share premium 12,448 12,398 12,398
Share based payments reserve 111 111 111
Retained Deficit (11,212) (10,676) (10,986)
Other reserves (983) (983) (983)
TOTAL EQUITY 5,155 5,446 5,136
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Share based
Share Share Payment Retained Other Total
Capital Premium Reserves Deficit Reserve Equity
£'000 £'000 £'000 £'000 £'000 £'000
As at 30 June 2023 4,406 12,220 111 (10,425) (983) 5,329
Ordinary shares issued 190 190 - - - 380
Share issue expenses - (12) - - - (12)
Total comprehensive loss (251) - (251)
As at 31 December 2023 4,596 12,398 111 (10,676) (983) 5,446
Ordinary shares issued - - - - - -
Transfer of reserves - -
Total comprehensive loss - (310) - (310)
As at 30 June 2024 4,596 12,398 111 (10,986) (983) 5,136
Ordinary shares issued 195 55 - - - 250
Share issue expenses - (5) - - - (5)
Total comprehensive loss - - (226) - (230)
As at 31 December 2024 4,791 12,448 111 (11,212) (983) 5,151
CONDENSED CONSOLIDATED CASH FLOW Six Months Six Months Year
Ended Ended Ended
31 Dec 24 31 Dec 23 30 Jun 2024
unaudited unaudited audited
£'000 £'000 £'000
CASH FLOW FROM OPERATING ACTIVITIES
Loss for the period (225) (251) (564)
Impairment of exploration and evaluation assets - - 5
(225) (251) (559)
Movements in Working Capital 32 85 142
NET CASH USED IN OPERATING ACTIVITIES (193) (166) (417)
CASH FLOWS FROM INVESTING ACTIVITIES
Additions to exploration and evaluation assets (74) (67) (70)
NET CASH USED IN INVESTING ACTIVITIES (74) (67) (70)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from share issue 250 380 380
Share issue costs (5) (12) (12)
NET CASH GENERATED FROM FINANCING ACTIVITIES 245 368 368
NET (DECREASE)/INCREASE IN CASH AND CASH EQUIVALENTS (22) 135 (119)
Cash and cash equivalents at beginning of the period 78 199 199
Effect of foreign exchange rate changes (1) - (2)
CASH AND CASH EQUIVALENT AT THE END OF THE PERIOD 55 334 78
Notes:
1. INFORMATION
The financial information for the six months ended 31 December 2024 and the
comparative amounts for the six months ended 31 December 2023 are unaudited.
The financial information above does not constitute full statutory accounts
within the meaning of section 434 of the Companies Act 2006.
The Interim Financial Report has been prepared in accordance with IAS 34
Interim Financial Reporting as adopted by the European Union.
The accounting policies and methods of computation used in the preparation of
the Interim Financial Report are consistent with those used in the Group 2024
Annual Report, which is available at www.botswanadiamonds.co.uk
(http://www.botswanadiamonds.co.uk)
The interim financial statements have not been audited or reviewed by the
auditors of the Group pursuant to the Auditing Practices board guidance on
Review of Interim Financial Information.
2. DIVIDEND
No dividend is proposed in respect of the period.
3. LOSS PER SHARE
Basic loss per share is computed by dividing the loss after taxation for the
period available to ordinary shareholders by the weighted average number of
ordinary shares in issue and ranking for dividend during the period.
Diluted loss per share is computed by dividing the loss after taxation for the
period by the weighted average number of ordinary shares in issue, adjusted
for the effect of all dilutive potential ordinary shares that were outstanding
during the period.
The following table sets forth the computation for basic and diluted earnings
per share (EPS):
Six Months Ended Six Months Ended
31 Dec 24 31 Dec 23 Year Ended
30 Jun 24
£'000 £'000 £'000
Numerator
For basic and diluted EPS retained loss (225) (251) (564)
No. No. No.
Denominator
Weighted average number of ordinary shares 1,165,984,456 1,057,998,118 1,088,730,358
Loss per share - Basic and Diluted (0.02p) (0.02p) (0.05p)
The following potential ordinary shares are anti-dilutive and are therefore
excluded from the weighted average number of shares for the purposes of the
diluted earnings per share:
No. No. No.
Share options 11,410,000 11,410,000 11,410,000
4. INTANGIBLE ASSETS
31 Dec 24 31 Dec 23 30 June 24
Exploration and evaluation assets: £'000 £'000 £'000
Cost:
Opening balance 10,258 10,188 10,188
Additions 74 67 70
Exchange variance - - -
10,332 10,255 10,258
Impairment:
Opening balance 4,746 4,746 4,746
Provision for impairment - - -
4,746 4,746 4,746
Carrying Value:
Opening balance 5,512 5,442 5,442
Closing balance 5,586 5,509 5,512
Regional Analysis 31 Dec 24 31 Dec 23 30 Jun 24
£'000 £'000 £'000
Botswana 3,587 3,550 3,572
South Africa 1,999 1,959 1,940
Zimbabwe - - -
5,586 5,509 5,512
Exploration and evaluation assets relate to expenditure incurred in
exploration for diamonds in Botswana and South Africa. The directors are aware
that by its nature there is an inherent uncertainty in exploration and
evaluation assets and therefore inherent uncertainty in relation to the
carrying value of capitalized exploration and evaluation assets.
On 11 November 2014 the Brightstone block was farmed out to BCL Investments
(Proprietary) Limited, a Botswana Company, who assumed responsibility for the
work programme. Botswana Diamonds had retained a 15% equity interest in the
project. On 20 July 2022 the Group increased its' stake to 26% equity interest
in the project.
On 6 February 2017 the Group entered into an Option and Earn-In Agreement with
Vutomi Mining Pty Ltd and Razorbill Properties 12 Pty Ltd (collectively known
as 'Vutomi'), a private diamond exploration and development firm in South
Africa.
On 28 September 2022 the Board announced that it had exercised its pre-emptive
right to acquire the outstanding third-party interests in Vutomi. The Company
also agreed that immediately on completion of the Acquisition, the Company
would sell 26% of Vutomi for a deferred consideration of US$316,333 to the
Company's local South African Empowerment partner, Baroville Trade and
Investments 02 Proprietary Limited ("Baroville"), in order to comply with
South African requirements on empowerment ownership, which will be funded by a
loan from Botswana Diamonds. On completion, the Company therefore owns 74% of
Vutomi.
On 23 May 2024 the Company announced that it has been granted four Prospecting
Licenses in the Kalahari of Botswana. These Prospecting Licenses cover a
total area of 2,331.81 square kilometres and have reference numbers PL0213,
0214, 0218 and 0219 of 2024 which adds to the Company's existing acreage in
the Kalahari. These Prospecting Licenses are in the same general area as the
Company's KX36 project.
The realisation of these intangible assets is dependent on the successful
discovery and development of economic diamond resources and the ability of the
Group to raise sufficient finance to develop the projects.
It is subject to a number of significant potential risks, as set out below:
• licence obligations;
• exchange rate risks;
• uncertainties over development and operational costs;
• political and legal risks, including arrangements with
governments for licenses, profit sharing and taxation;
• foreign investment risks including increases in taxes,
royalties and renegotiation of contracts;
• title to assets;
• financial risk management;
• going concern; and
• operational and environmental risks.
Included in additions for the year are £Nil (June 2024: £28,125) of
directors' remuneration which has been capitalized. This is for time spent
directly on the operations rather than on corporate activities.
5. SHARE CAPITAL
Deferred Shares - nominal value of 0.75p per share Number Share Capital Share Premium
£'000 £'000
At 1 July 2023 and 1 July 2024 239,487,648 1,796,157 -
At 30 June 2024 and 31 December 2024 239,487,648 1,796,157 -
Ordinary Shares - nominal value of 0.25p per share Number Share Capital Share Premium
£'000 £'000
At 1 July 2023 1,043,877,899 2,610 12,220
Issued during the period 76,000,000 190 190
Share issue expenses - - (12)
At 31 December 2023 1,119,877,899 2,800 12,398
Issued during the period - - -
Share issue expenses - - -
At 30 June 2024 1,119,877,899 2,800 12,398
Issued during the period 78,125,000 195 55
Share issue expenses - - (5)
At 31 December 2024 1,198,002,899 2,995 12,448
Movements in share capital
On 7 August 2024 the Company raised £250,000
through the issue of 78,125,000 new ordinary shares at a placing price of
0.32p via a placing and subscription with existing and new investors. Each
Placing Share has one warrant attached with the right to subscribe for one new
Ordinary Share at 0.5p per new Ordinary Share for a period of two years from 7
August 2024.
6. OTHER RECEIVABLES
31 Dec 24 31 Dec 23 30 Jun 24
£'000 £'000 £'000
Prepayments 28 17 27
Debtor Baroville (Note 4) 249 249 249
277 266 276
The carrying value of other receivables
approximates to their fair value.
7. TRADE AND OTHER PAYABLES
31 Dec 24 31 Dec 23 30 Jun 24
£'000 £'000 £'000
Trade payables 109 86 102
Petra Diamonds creditor 123 123 123
Accruals 738 661 712
970 870 937
It is the Company's normal practice to agree terms of transactions, including
payment terms, with suppliers and provided suppliers perform in accordance
with the agreed terms, payment is made accordingly. In the absence of agreed
terms it is the Company's policy that the majority of payments are made
between 30 - 40 days. The carrying value of trade and other payables
approximates to their fair value.
8. SHARE BASED PAYMENTS
WARRANTS
Dec 2024 Jun 2024 Dec 2023
Number of Warrants Weighted average exercise price in pence Number of Warrants Weighted average exercise price in pence Number of Warrants Weighted average exercise price in pence
Outstanding at beginning of period 131,000,000 1.13 131,000,000 1.13 55,000,000 2.0
Issued 78,125,000 0.5 - - 76,000,000 0.5
Exercised - - - -
Expired (55,000,000) 2.0 - - - -
Outstanding at end of period 154,125,000 0.5 131,000,000 1.13 131,000,000 1.13
Further information on the warrants are detailed in Note 5 above.
9. POST BALANCE SHEET EVENTS
There are no material post balance sheet events affecting the Group.
10. APPROVAL
The Interim Report for the period to 31(st)
December 2024 was approved by the Directors on 18 March 2025.
11. AVAILABILITY OF REPORT
The Interim Statement will be available on the
website at www.botswanadiamonds.co.uk (http://www.botswanadiamonds.co.uk)
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