REG - Capital Metals PLC - Half-year Report
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RNS Number : 0226M Capital Metals PLC 18 December 2025
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS STIPULATED UNDER THE UK
VERSION OF THE MARKET ABUSE REGULATION NO 596/2014 WHICH IS PART OF ENGLISH
LAW BY VIRTUE OF THE EUROPEAN (WITHDRAWAL) ACT 2018, AS AMENDED. ON
PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS
INFORMATION IS CONSIDERED TO BE IN THE PUBLIC DOMAIN.
18 December 2025
Capital Metals PLC
("Capital Metals" or the "Company")
Unaudited Interim Results for the Six-Month Period Ended 30 September 2025
Capital Metals (AIM: CMET), a mineral sands company approaching mine
development stage at its high-grade Taprobane Minerals Project in Sri Lanka
(the "Project"), announces its unaudited interim results for the six-month
period ended 30 September 2025 (the "Half-Year").
Half-Year Highlights:
· Completed Phase 1 Aircore drilling at depth resulting in
approximately a 15x increase in Mineral Resource Estimate tonnes in Initial
Mining Area
· Significant progress towards project development in key areas:
o Substantial engineering/studies progress towards Final Investment Decision
("FID")
o Positive ongoing discussions regarding two key pending approvals
o Project funding advancing
o Building community support
o Growing team in Sri Lanka
o Improved project economics resulting in improved NPV
· Secured $4 million strategic investment with significant new Sri
Lankan partner and signed a Memorandum of Understanding ("MoU") for Project
funding
o Raised approximately $1 million in additional funding from existing
shareholder participation
o Prominent Sri Lankan directors joined the Board: cricket legend and
business magnate, Aravinda De Silva, and leading Investment Specialist and
Ambeon Capital PLC ("Ambeon Capital") Director, Savanth Sebastian
Greg Martyr, Executive Chairman of Capital Metals, commented:
"From the exceptional results of the Phase 1 Aircore drilling programme and
the subsequent Mineral Resource Estimate upgrade, to the advancement of
engineering, regulatory, and commercial workstreams, we have continued to
improve the foundations for Project development. Strategic investments from
Ambeon Capital, alongside support from existing shareholders, have ensured the
Company is well funded to complete the approvals and planning required to take
FID to enable the commencement of construction in Q1 next year.
With a strengthened Board, including prominent Sri Lankans, growing local
engagement, and an expanding social licence to operate, Capital Metals is
firmly positioned to deliver a long-life, high-grade mineral sands operation
that will create meaningful value for shareholders, local communities, and Sri
Lanka."
For further information, please visit www.capitalmetals.com
(http://www.capitalmetals.com) or contact:
Capital Metals plc Via Vigo Consulting
Greg Martyr (Executive Chairman)
Vigo Consulting (Investor Relations) +44 (0)20 7390 0234
Ben Simons / Peter Jacob capitalmetals@vigoconsulting.com (mailto:capitalmetals@vigoconsulting.com)
Strand Hanson Limited (Nominated Adviser) +44 (0) 20 7409 3494
Ritchie Balmer / Christopher Raggett / David Asquith
Hannam & Partners (Broker & Financial Adviser) +44 (0)20 7907 8500
Andrew Chubb / Leif Powis
About Capital Metals
Capital Metals is a UK company listed on the London Stock Exchange (AIM:
CMET). We are developing the Taprobane Minerals Project in Sri Lanka,
approximately 220km east of Colombo, containing industrial minerals including
ilmenite, rutile, zircon, and garnet. The Project is one of the highest-grade
mineral sands projects globally, with potential for further grade and resource
expansion. In 2022, a third-party Preliminary Economic Assessment provided a
Project NPV of US$155-235m based on existing resources, with further
identified optimisation potential. We are committed to applying modern mining
practices and bringing significant positive benefits to Sri Lanka and the
local community. We expect over 300 direct new jobs to be created and over
US$150m in direct government royalties and taxes to be paid.
Visit our website:
www.capitalmetals.com (http://www.capitalmetals.com)
Follow us on social media:
X: @MetalsCapital (https://twitter.com/MetalsCapital)
LinkedIn: @Capital Metals plc (https://uk.linkedin.com/company/capitalmetals)
CHAIRMAN'S STATEMENT
Introduction
I am pleased to present the unaudited half year report for the six-month
period ended 30 September 2025. The Half-Year has been one of sustained
progress as we advanced the Taprobane Minerals Project through a series of
important technical, commercial, and operational milestones.
The Company's drilling programme has continued to demonstrate exceptional
grades and expanding mineralisation, culminating in a major upgrade, as
announced on 17 November 2025, to the Mineral Resource Estimate ("MRE") for
the Initial Mining Area ("IMA"). This has reinforced the Project's scale and
extended its longevity.
In parallel, we have advanced engineering, design, and regulatory work
required for development, improved Project economics, and strengthened our
position in Sri Lanka as we move towards construction.
A strategic investment secured in the period from one of Sri Lanka's leading
diversified conglomerates, together with investment support from existing
shareholders, ensures the Company is adequately funded through and beyond FID.
Review of Activity
Drilling & MRE Upgrade
The Company was actively drilling during the Half-Year, completing Phase 1
Aircore drilling at depth in June 2025 with 170 reverse circulation holes
drilled for 1,501 metres, in the proposed IMA. This resulted in a new
discovery with confirmation of high-grade mineralisation at depth and outside
the pre-existing MRE.
Assays were returned from the laboratory from July through September 2025,
confirming consistently high heavy mineral grades and a more than threefold
increase in the surface area of the mineralisation in the IMA alone compared
to the pre-existing resource. This marked a step change for the Project as the
Company advances towards development. The discovery of multiple high-grade
palaeo-shorelines at depth further strengthens the long-term potential of the
Project.
Whereas the 2016 MRE in the IMA covered 47 hectares, the aircore drilling
assay results from the 2025 programme indicate the mineralisation extends
substantially to the west and at depth and now extends across an area around
3.2 times larger at 152 hectares. Analysis of this work led to the
announcement on 17 November 2025 of a major upgrade, with Stage 1 drilling
delivering nearly a 15 times increase in MRE tonnes in the proposed IMA (using
a bottom cut of 2% Heavy Minerals ("HM")).
Maintaining a 5% HM bottom cut delivers a 4.8 times increase in MRE tonnes in
the IMA, from 897kt to 4.3Mt at an average resource grade of 10.5% HM.
Applying a 2% HM bottom cut, however, delivers a 14.6 times increase in MRE
tonnes from 897kt to 13.1Mt at an average resource grade of 5.5% HM.
The mineralisation typically commences from surface to a maximum of 15 metres
depth with an average total depth of 7.9 metres. The MRE is predominately
classified at an indicated level, which is suitable for calculation of
Probable Mining Reserves for operational planning and product scheduling
purposes.
This is a considerable resource increase, which exponentially exceeds the
Company's assumed upgrade for the Initial Mining Area when the Company updated
the Project's financial model and NPV, as announced on 18 September 2025. The
Company now looks forward to continuing the deeper drilling across the balance
of the Project where hopefully this trend will continue to deliver similar
multiples of resource increase. The implications of a similar increase across
the whole resource make this a potentially multi-generational project.
Ongoing technical evaluations are required to determine the optimal pit sizes
and processing strategy, but it is clear that this will open up flexible
mining options, including a combination of high-grade surface mining and
significantly lower cost dredging for the deeper and wider deposits, subject
to local approvals.
These results clearly justify the ongoing drilling programme, which is
expected to significantly increase the total Project resource and to
facilitate a better understanding of the Company's mining and processing
alternatives, which will add to our overall valuation for what will clearly be
a long life mine with a grade that is expected to remain among the highest in
the world.
Progress Towards Project Development
The Company intends to be cash flow generative by early 2027. This requires
all studies to be complete and Project approvals and funding in place in order
to commence construction in Q1 2026 - with FID being taken any time prior. Key
areas of progress include:
- Technical
· Completion of Process Flow Diagram for the Wet Concentrator Plant
("WCP")
· Establishment of WCP process design criteria for low (150 tph), base
(175 tph) and high (200 tph) throughput scenarios to accommodate variable feed
grades as mining progresses
· Completion of 3D model and general arrangement drawings for WCP
· Completion of mechanical equipment list and electrical load demand
for WCP
· Completion of logistics study for road haulage and export (via
Colombo Port)
· Completion of hydrogeology study
· Assessment of heavy mobile equipment requirements
Mineral Technologies has provided a fixed lump sum price for the fabrication
and supply of key Stage 1 equipment, including the pre-designed Flex-Series
WCP, feed hopper and screening unit. The flowsheet remains a simple
three-stage spiral plant with a feed hopper, vibrating screen, and ancillary
equipment.
- Advancing Two Main Approvals
The Company continues to await parliamentary endorsement of a new National
Minerals Policy, understood to be imminent. We expect its publication will
send a strong signal that Sri Lanka is 'Open for Business' for mining.
Certainly, we have been encouraged by recent moves in Sri Lanka to transfer
the management of the Geological Survey and Mines Bureau from the Ministry of
Environment to the Ministry of Industry, with associated positive public
statements indicative of a progressive attitude to the sector from the
Minister of Industry. Subsequent to the announcement of the National Minerals
Policy, guidelines on the specific value addition requirements in the mineral
sands sector are anticipated, and we have been very active in seeking to
educate all stakeholders on a practical staged approach. Capital Metals is
also seeking an additional Industrial Mining Licence ("IML") focussed on the
proposed IMA and adjacent to the two existing approved IMLs.
- Funding Plans
Discussions with banks and other investors to provide project debt and equity
financing began in the Half-Year and are ongoing. The Company is also engaged
in active discussions with preferred potential offtakers, with a focus on
those that may also provide project equity or working capital funding.
Several constructive meetings were held last month at the key global mineral
sands conference in Kuala Lumpur. The recognised high quality of the Project's
mineral products has attracted broad market interest, and counterparties have
expressed positive interest in long-term supply arrangements.
- Building Trust Through Action in Local Communities
Among the most important areas of progress in the Half-Year has been the
strengthening of relationships with host communities in Sri Lanka's Eastern
Province. Recent initiatives include sponsorship of local schools and A-Level
education programmes, spiritual events, fishing societies, sporting
associations, as well as the installation of community suggestion boxes to
encourage open dialogue and support for environmental activities such as
coastal beach clean-ups.
During the period, Capital Metals, in association with the Urani Super
Warriors Sports Club, sponsored a local cricket tournament branded the
"Capital Metals Cricket Cup", with over 40 teams from around the eastern
province coming together in an incredible display of talent and sportsmanship.
The Company's Non-Executive Director and a Sri Lankan cricket hero, Aravinda
De Silva, presented awards during the closing ceremony.
As part of the board's site visit, members donated a fishing boat to a local
fishing society, a gesture that will directly benefit more than 50 families.
The Company has also helped women's groups and small-scale agricultural
projects to support local livelihoods. These activities reflect the Company's
commitment to delivering sustainable, long-term benefits for local
stakeholders alongside the advancement of the Taprobane Minerals Project.
Mineral sands mining is not well known in the Project area. This presents
challenges in terms of awareness and understanding of the Company's proposed
activities. The Company has been actively and successfully prioritising
education and awareness programmes, both locally within the Project area and
more broadly across the country, recognising that education is key to building
long-term understanding and support. The Company's Sri Lankan Facebook
account, launched during the Half-Year, has quickly amassed over a thousand
followers and is a key channel for communication.
The Company is also in the process of establishing the first of a series of
Coastal Regeneration Centres, focussed on the preferred native plants and
regeneration practices required for rehabilitation over the life of the
Project, while also providing a platform for students and the wider public to
learn more about the Company's environmental practices.
- In-Country Team Expansion and Capacity Building
Key local appointments during the Half-Year include a Financial Controller,
Mining Engineer, Project Manager and Processing Specialist, with recruitment
ongoing for a Manager of Environment to lead the development of the
operational Environmental Management Plan and detailed rehabilitation plans in
coordination with the mine engineering team.
The team is also developing a heavy equipment training programme to upskill
local employees and build long-term operational capacity.
- Updated Financial Model and Increase in NPV
A key piece of work in the Half-Year was the development of a new financial
model including:
· Reduced Stage 1 capex of $20.9 million, as announced on 18 September
2025
· Refinement of heavy equipment requirements using a first-principles
approach
· Detailed build-up of mining and processing operating costs
· Updated logistics costs following completion of logistics studies
· Resource increase to reflect indications from recent drilling
results, with base and upside case resources modelled at 1.33x and 1.67x the
existing MRE respectively
· Updated increased corporate tax and royalty assumptions
This resulted in materially improved Project economics, with the MRE upgrade
assumptions being subsequently exceeded when the MRE for the IMA was published
after the Half-Year end on 18 September 2025.
· the base case NPV(8) (post tax) has increased to $180 million
compared to $155 million;
· the upside case NPV(8) (post tax) has increased to $289 million
compared to $235 million;
· the base case IRR (post tax) has increased to 73% compared to 56%;
· the upside case IRR (post tax) has increased to 98% compared to 73%;
and
· the updated NPV(8) per share of 27p and 44p for base and upside
cases, respectively.
- Premium Garnet Quality Confirmed by Independent Testing
The results of a garnet product quality study announced in the Half-Year
confirmed that the garnet is of a superior quality than previously thought and
will therefore attract a higher price in the industrial abrasive market. The
Company is in discussions with global garnet distributors regarding potential
offtake agreements.
Financial Matters
On 29 May 2025, the Company announced a landmark strategic investment of $2
million into the Company by way of a share subscription by Ambeon Capital,
together with an option for Ambeon Capital or its nominees to invest up to a
further $2 million. By September 2025, the option was fully exercised by
Ambeon Capital's nominees, bringing in $4 million in total from this strategic
investment. This was supplemented by approximately a further $1 million from
existing shareholder participation. These funding events are expected to see
the Company comfortably funded through FID and beyond.
Ambeon Capital is a Colombo Stock Exchange listed diversified conglomerate and
part of one of Sri Lanka's most successful investment organisations. Ambeon
Capital had been looking to enter Sri Lanka's mineral sands sector and has now
become the Company's largest shareholder, owning c.12.15% of the Company.
Given its connections in Sri Lanka, Ambeon Capital is already assisting in
improving the speed and flow of information and communication with national
stakeholders.
Ambeon Capital and Capital Metals also signed a non-binding MoU for an agreed
path to fund the Project at FID to commence construction, through arranging
the provision of $20 million in equity/debt at the Project level, with such
amount anticipated to be sufficient to complete Stage 1 development at which
point the Project is expected to become self-funding.
The Company made a loss before income tax for the Half-Year of $1,069,078
compared to $446,781 in the corresponding period last year. The loss for the
year increased primarily due to the significant accounting charge from the
issuance of Silver Pine Pacific Limited share options in September 2025,
together with higher expenses driven by increased Company activity levels,
such as travel expenses and equity fundraising initiatives. These activities
include the continuation of the drilling programme, advanced engineering,
design and regulatory work for development, and strengthened presence in Sri
Lanka ahead of construction. As at 30 September 2025, the Company had
$4,781,609 in cash and cash equivalents (31 March 2025: $1,351,494).
Board Appointments
In August 2025, I had the honour to welcome two respected Sri Lankan business
leaders to the Board of Capital Metals, Aravinda De Silva and Savanth
Sebastian.
Aravinda De Silva is an ICC Cricket Hall of Fame inductee and national
sporting icon who played a crucial part in Sri Lanka's 1996 World Cup-winning
team. He is making a significant positive impact in Sri Lanka as a businessman
and investor, and he is already playing a key role in the development of the
Taprobane Minerals Project.
Savanth Sebastian is a leading business figure in Sri Lanka with considerable
industry knowledge and expertise. He currently serves as a Director of Ambeon
Capital, helping to shape its financial and investment strategies. He was a
Director at Nations Trust Bank PLC of Sri Lanka and serves on the board of Sri
Lanka's largest IT company.
Aravinda and Savanth played key roles in cementing Ambeon Capital's strategic
investment in Capital Metals. The Company is working hard with Aravinda,
Savanth and the Ambeon Capital team, with whom the Company now shares an
office in Colombo, on many fronts to develop the Project that will create
sustainable value for Sri Lanka in the form of jobs, skills, revenue,
education, and training.
Outlook
The Half-Year has been marked by substantial progress across all aspects of
the Taprobane Minerals Project. From the exceptional results of the Phase 1
Aircore drilling programme at depth and the subsequent Mineral Resource
Estimate upgrade to the advancement of engineering, regulatory, and commercial
workstreams, the Company has continued to improve the foundations for Project
development. Strategic investments from Ambeon Capital, alongside support from
existing shareholders, have ensured the Company is well funded to complete the
approvals and planning required to commence construction.
The Company now looks forward to continuing the deeper Aircore drilling across
the balance of the Project where hopefully the trend seen in Phase 1 will
continue to deliver similar multiples of resource increases. The implications
of a similar increase across the whole resource make this a potentially
multi-generational project. There remains a lot of work to do to determine the
optimal pit sizes and how the resource will be processed, but it is clear that
this will open up flexible mining options, including a combination of
high-grade surface mining and significantly lower cost dredging for the deeper
and wider deposits, subject to local approvals.
With a strengthened Board, including prominent Sri Lankans, growing local
engagement, and an expanding social licence to operate, Capital Metals is
firmly positioned to deliver a long-life, high-grade mineral sands operation
that will create meaningful value for shareholders, local communities, and Sri
Lanka. On behalf of the Board, I extend my sincere thanks to our employees,
advisers, partners, and other stakeholders for their ongoing support in
advancing this world-class asset.
Greg Martyr
Executive Chairman
18 December 2025
CAPITAL METALS PLC - CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE 6 MONTH PERIOD ENDING 30 SEPTEMBER 2025
Unaudited Unaudited
Period ending Period ending
30 September
30 September
2024
2025
Note $ $
Continuing Operations
Revenue - -
Administrative expenses (717,293) (454,492)
Share based payments (403,425) (4,631)
Foreign exchange gain / (loss) (1,741) (871)
Operating profit /(loss) (1,122,459) (459,994)
Finance Income 53,381 13,213
Profit / (loss) before taxation (1,069,078) (446,781)
Income Tax - -
Profit / (loss) for the period from (1,069,078) (446,781)
continuing operations
Other comprehensive income
Items that may be reclassified to profit or loss
Currency translation differences (149,205) 216,927
Total comprehensive profit/(loss) for the period (1,218,283) (229,854)
Basic loss per share (pence) 5 (0.140) (0.064)
CAPITAL METALS PLC - CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 SEPTEMBER 2025
Unaudited Unaudited Audited
As At As At
As At September
30 September
31 March
2025
2024
2025
Note $ $ $
NON-CURRENT ASSETS
Property, plant and equipment 25,397 20,561 23,026
Other Loans 141,469 144,141 144,860
Intangible Assets 6 6,685,422 5,708,492 6,055,291
TOTAL NON-CURRENT ASSETS 6,852,288 5,873,194 6,223,177
CURRENT ASSETS
Trade and other receivables 100,853 44,625 80,731
Cash and cash equivalents 4,781,609 2,427,569 1,351,494
TOTAL CURRENT ASSETS 4,882,462 2,472,194 1,432,225
TOTAL ASSETS 11,734,750 8,345,388 7,655,402
NON-CURRENT LIABILITIES
Trade and other payables 600,000 600,000 600,000
TOTAL NON-CURRENT LIABILITIES 600,000 600,000 600,000
CURRENT LIABILITIES
Trade and other payables 637,058 790,077 883,958
TOTAL CURRENT LIABILITIES 637,058 790,077 883,958
TOTAL LIABILITIES 1,237,058 1,390,077 1,483,958
NET ASSETS 10,497,692 6,955,311 6,171,444
EQUITY
Share capital 7 6,851,056 6,455,344 6,455,344
Share premium 7 59,651,917 54,923,341 54,936,218
Other Reserves (38,652,460) (38,803,708) (38,907,313)
Retained losses (17,261,985) (15,499,523) (16,192,907)
Non-controlling interest (90,836) (120,143) (119,898)
TOTAL EQUITY 10,497,692 6,955,311 6,171,444
The notes form an integral part of the Condensed Consolidated Interim
Financial Statements.
The Condensed Consolidated Financial Statements were approved and authorised
by the Board of Directors on 18 December 2025:
…………………………….
Greg Martyr
Executive Chairman
CAPITAL METALS PLC - CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY - AS AT 30 SEPTEMBER 2025
Share Share Other Retained Total Non-Controlling Total
Capital Premium Reserves Losses Equity Interest Equity
$ $ $ $ $ $ $
Balance at 31 March 2024 6,455,344 54,923,341 (39,071,519) (15,052,742) 7,254,424 (73,890) 7,180,534
Loss for period - - - (446,781) (446,781) - (446,781)
Other comprehensive income - - 216,927 - 216,927 - 216,927
Total comprehensive loss for period - - 216,927 (446,781) (229,854) - (229,854)
Grant of options - - 4,631 - 4,631 - 4,631
Foreign exchange movements on NCI - - 46,253 - 46,253 (46,253) -
Total transactions with owners, recognised in equity - - 50,884 - 50,884 (46,253) 4,631
Balance at 30 September 2024 6,455,344 54,923,341 (38,803,708) (15,499,523) 7,075,454 (120,143) 6,955,311
Balance at 31 March 2025 6,455,344 54,936,218 (38,907,313) (16,192,907) 6,291,342 (119,898) 6,171,444
Loss for period - - - (1,069,078) (1,069,078) - (1,069,078)
Other comprehensive income - - - - - - -
Total comprehensive loss for period - - - (1,069,078) (1,069,078) - (1,069,078)
Transactions with owners in own capacity - - - - - - -
Ordinary shares issued in the period 395,712 4,715,699 - - 5,111,411 - 5,111,411
Issue of options - - 403,425 - 403,425 - 403,425
Foreign exchange movements - - (147,635) - (147,635) 29,063 (118,572)
Expired options - - (938) - (938) - (938)
Total transactions with owners, recognised directly in equity 395,712 4,715,699 254,852 - 5,366,263 - 5,395,326
Balance at 30 September 2025 6,851,056 59,651,917 (38,652,461) (17,261,985) 10,588,527 (90,836) 10,497,692
CAPITAL METALS PLC - CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
CONSOLIDATED STATEMENT OF CASHFLOWS
FOR THE 6 MONTH PERIOD ENDING 30 SEPTEMBER 2025
Unaudited Unaudited
Period ended Period ended
30 September
30 September
2024
2025
$ $
Cash flow from operating activities
Profit / (loss) before taxation for the period (1,069,078) (446,781)
Adjustments for:
Share based payments 403,425 4,631
Depreciation 4,648 3,564
Interest income (7,415) (13,157)
Foreign exchange (60,455) (8,842)
Changes in working capital:
(Increase) / decrease in trade and other receivables (20,122) 7,585
(Decrease) in trade and other payables (246,900) (65,186)
Net cash outflow from operating activities (995,897) (518,186)
Cash flows from investing activities
Purchase of property, plant and equipment (2,278) (2,336)
Exploration and evaluation activities (630,131) (340,449)
Interest received 7,415 13,157
Net cash flow from investing activities (624,994) (329,628)
Cash flows from financing activities
Proceeds from issue of shares 5,297,582 -
Share issue costs (186,171) -
Net cash flow from financing activities 5,111,411 -
Net increase/(decrease) in cash and cash equivalents 3,490,520 (847,814)
Exchange differences on cash (60,405) 188,054
Cash and cash equivalents at beginning of the period 1,351,494 3,087,329
Cash and cash equivalents at end of the period 4,781,609 2,427,569
CAPITAL METALS PLC - CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE 6 MONTH PERIOD ENDING 30 SEPTEMBER 2025
1. General information
Capital Metals plc is a mineral exploration company with its shares admitted
to trading on the AIM Market of the London Stock Exchange.
The Company is domiciled in the United Kingdom and incorporated and registered
in England and Wales, with registration number 05555087. The address of its
registered office is Eccleston Yards, 25 Eccleston Place, London SW1W 9NF,
United Kingdom.
2. Accounting Policies
IAS 8 requires that management shall use its judgement in developing and
applying accounting policies that result in information which is relevant to
the economic decision-making needs of users, that are reliable, free from
bias, prudent, complete and represent faithfully the financial position,
financial performance and cash flows of the entity.
2.1 Basis of Preparation
The condensed consolidated interim financial statements have been prepared in
accordance with the requirements of the AIM Rules for Companies. As permitted,
the Company has chosen not to adopt IAS 34 "Interim Financial Statements" in
preparing this interim financial information. The condensed interim financial
statements should be read in conjunction with the annual financial statements
for the year ended 31 March 2025, which have been prepared in accordance with
UK adopted international accounting standards.
The interim financial information set out above does not constitute statutory
accounts within the meaning of the Companies Act 2006. It has been prepared on
a going concern basis in accordance with the recognition and measurement
criteria of UK adopted international accounting standards.
Statutory financial statements for the year ended 31 March 2025 were approved
by the Board of Directors on 17 August 2025 and delivered to the Registrar of
Companies. The report of the auditors on those financial statements was
unqualified in relation to the Company's ability to continue as a going
concern. The condensed interim financial statements are unaudited and have not
been reviewed by the Company's auditor.
2.2 Accounting Policies
Except as described below, the same accounting policies, presentation and
methods of computation have been followed in these condensed interim financial
statements as were applied in the preparation of the Company's annual
financial statements for the year ended 31 March 2025.
Changes in accounting policy and disclosures
(a) New and amended standards adopted by the Group and Company
A number of new and amended standards and interpretations issued by the
International Accounting Standards Board (IASB) have become effective for the
first time for financial periods beginning on (or after) 1 April 2024 and have
been applied by the Company and Group in these interim financial statements.
None of these new and amended standards and interpretations had a significant
effect on the Company or Group because they are either not relevant to the
Company or Group's activities or require accounting which is consistent with
the Company or Group's current accounting policies.
(b) New standards, amendments and Interpretations in issue but not yet
effective or not yet endorsed and not early adopted
There are a number of standards, amendments to standards, and interpretations
which have been issued by the IASB that are effective in future accounting
periods, and which have not been adopted early.
2.3 Going concern
These financial statements have been prepared on the going concern basis.
Given the Group's current cash position and its demonstrated ability to raise
capital, the Directors have a reasonable expectation that the Group has
adequate resources to continue in operational existence for the foreseeable
future. Thus, they continue to adopt the going concern basis of accounting
preparing the condensed unaudited interim financial statements for the period
ended 30 September 2025.
Since 31 March 2025, the Group has sourced additional financing validating the
Directors decision to adopt the Going Concern assumption. The Directors
continue to exercise due process when evaluating the liquidity of the Group
and will continue to make certain assumptions with regards to the timing and
amount of future expenditure over which they have control. Considering all the
factors affecting the Group the Directors are confident in the ability of the
Group to satisfy this condition and hence continue to adopt the going concern
basis in preparing these interim financial statements.
2.4 Risks and uncertainties
The Board continuously assesses and monitors the key risks of the business.
The key risks that could affect the Company's medium term performance and the
factors that mitigate those risks have not substantially changed from those
set out in the 2025 Annual Report, a copy of which is available on the
Company's website: www.capitalmetals.com. The key financial risks are foreign
currency risk, liquidity risk, credit risk, market risk and fair value
estimation.
3. Critical accounting estimates and judgements
The preparation of condensed interim financial statements requires management
to make estimates and assumptions that affect the reported amounts of assets
and liabilities at the end of the reporting period. Significant items subject
to such estimates are set out in the 31 March 2025 Annual Report. The nature
and amounts of such estimates have not changed significantly during the
interim period.
4. Dividends
No dividend has been declared or paid by the Company during the six months
ended 30 September 2025 (2024: $nil).
5. Earnings per Share
The calculation for basic and diluted earnings per ordinary share is based on
the total comprehensive loss after income tax attributable to equity
shareholders for the period and is as follows:
Unaudited Unaudited Audited
Period ended Period ended Year ended
30 Sep
30 Sep
31 March
2025
2024
2025
Net profit / (loss) for the period attributable to ordinary equity holders for (1,069,078) (446,781) (1,140,932)
continuing operations ($)
Weighted average number of ordinary shares in issue 770,730,376 701,083,711 701,083,711
Basic and diluted earnings per share for continuing operations (pence) (0.139) (0.064) (0.163)
There is no difference between the diluted loss per share and the basic loss
per share presented. Share options and warrants could potentially dilute basic
earnings per share in the future but were not included in the calculation of
diluted earnings per share as they are anti-dilutive for the period presented.
6. Intangible fixed assets
The movement in capitalised exploration and evaluation costs during the period
was as follows:
Exploration & Evaluation at Cost and Net Book Value $
Opening balance - 30 September 2024 5,708,492
Additions 308,719
Foreign Exchange 38,080
As at 31 March 2025 6,055,291
Opening balance - 1 April 2025 6,055,291
Additions 663,729
Foreign Exchange (33,598)
As at 30 September 2025 6,685,422
7. Share Capital and Share Premium
Ordinary Shares Share Capital Share Premium Total
# $ $ $
As at 30 September 2024 344,806,209 903,344 54,923,341 55,826,685
Expiry of warrants (cost of capital) - - 12,877 12,877
As at 31 March 2025 344,806,209 903,344 54,936,218 55,839,562
Issue of ordinary shares(1) 146,385,231 395,712 4,755,949 5,151,660
As at 30 September 2025 491,191,440 1,299,056 59,692,167 60,991,222
Deferred Shares Share Capital Total
# $ $
As at 30 September 2024 356,227,502 5,552,000 5,552,000
As at 31 March 2025 356,227,502 5,552,000 5,552,000
As at 30 September 2025 356,227,502 5,552,000 5,552,000
Ordinary Shares and Deferred Shares total a share capital value of $6,851,056,
with no movement in deferred shares for the period.
(1) During the period, the Company issued 146,385,231 ordinary shares of par
value £0.002 at varying subscription prices as part of placements in the
Company. Each share issuance with the subscription price is set out below:
· 02/04/2025: 344,052 ordinary shares at a subscription price of
£0.019799
· 26/05/2025: 67,685,000 ordinary shares at a subscription price of
£0.023
· 02/06/2025: 16,000,000 ordinary shares at a subscription price of
£0.023
· 05/06/2025: 283,355 ordinary shares at a subscription price of
£0.024106
· 26/06/2025: 783,677 ordinary shares at a subscription price of
£0.023
· 04/08/2025: 22,713,704 ordinary shares at a subscription price of
£0.0255
· 12/09/2025: 38,575,443 ordinary shares at a subscription price of
£0.0255
8. Events subsequent to period end
There were no material events subsequent to period end that require
disclosure.
9. Approval of interim financial statements
The Condensed interim financial statements were approved by the Board of
Directors on 18 December 2025.
10. Availability of interim financial statements
Copies of these interim financial statements are available from the Capital
Metals website at www.capitalmetals.com (http://www.capitalmetals.com) .
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