REG - Chesterfield Res PLC - Half-year Report
15/09/2023 10:45
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RNS Number : 6249M Chesterfield Resources PLC 15 September 2023
Chesterfield Resources PLC / EPIC: CHF / Market: LSE / Sector: Mining
15 September 2023
CHESTERFIELD RESOURCES PLC
("Chesterfield" or the "Company")
Interim Results
Chesterfield Resources PLC, the LSE listed mineral exploration company with
projects in Cyprus and Canada, is pleased to announce its interim results for
the six months ended 30 June 2023.
Chairman's review of year to date
During the first half of 2023 Chesterfield continued on its policy set out
late 2022 which is aimed at restructuring the exploration licence portfolio in
both Cyprus and Canada. This work has been carried out with the aim of
reducing the need for continual equity dilution while preserving as much as
possible shareholder exposure to these licences and their potential value
accretion. The announcement in March of the optioning of the Adeline Project
in Canada to Sterling Metals in exchange for cash and shares was an important
milestone in this restructuring policy. The agreement with Sterling had an
immediate beneficial impact on Chesterfield's finances, with the payment by
Sterling of CAD$400,000 (£244,000), which constitutes half of the cash
payment for the option, with the remainder payable in the event that Sterling
opt to acquire the Adeline licences prior to 30 November 2024. This cash was
accompanied by 4.5m shares in Sterling which were paid to Chesterfield, with a
further 4.5m payable on the same conditions by 30 November 2024. In April,
Sterling raised CAD$6.476m (£3.8m) in new equity to fund its exploration
plans for the summer and autumn of 2023, with a total of CAD$2.5m (£1.476m)
slated for expenditure on drilling and related work at Adeline. Any success at
Adeline will be reflected in the value of Sterling shares that Chesterfield
holds which in May constituted a 4% stake in the listed Canadian explorer.
Chesterfield rationalised its licence holdings in Cyprus in late 2022,
reducing holdings from a total of 26 licences covering 110.42 km2 to 3
licences covering 13.39 km2. The Company has outlined plans for further
exploration work on the retained properties. The Board would prefer to work
with partners on these promising properties and will update shareholders as
and when any formal arrangements are entered into.
During the first half of 2023, the Board has continued to carry out extensive
work to examine a number of possible options for the Company to make an
investment into new opportunities. The goal is to find a new area of business
activity that will generate significant shareholder value in the near term and
to announce a new direction in Chesterfield's development by the end of 2023.
Shareholders should note that, subject to the terms that may be agreed for
these opportunities, additional capital raising or additional shares being
issued are possible outcomes of such a change.
An important part of the current overall strategy is cost savings, and the
results of our efforts in this area should be clear from the accounts for the
period. In addition to the cuts in exploration and related staffing and other
overheads, management have been able to significantly reduce outgoings both to
service providers and the Board, whose fees have been significantly cut back
to £2,500 monthly during the period. With no debts and very low cash outlays,
the Company is in a stable financial condition for the foreseeable future, and
notwithstanding any further acquisitions or investments should preclude the
need for a dilutive capital raise.
Financials
As is to be expected with an exploration company, for the six-month period
ended 30 June 2023 the Group is reporting a pre-tax loss of £110,963 (six
months ended 30 June 2022: loss of £491,607). The Group's net cash balance as
at 30 June 2023 was £348,243 (30 June 2022: £663,226).
Responsibility Statement
We confirm that to the best of our knowledge:
· the interim financial statements have been prepared in accordance
with International Accounting Standards 34, Interim Financial Reporting, as
adopted by the UK;
· give a true and fair view of the assets, liabilities, financial
position and loss of the Company;
· the Interim report includes a fair review of the information
required by DTR 4.2.7R of the Disclosure and Transparency Rules, being an
indication of important events that have occurred during the first six months
of the financial year and their impact on the set of interim financial
statements; and a description of the principal risks and uncertainties for the
remaining six months of the year; and
· The Interim report includes a fair review of the information
required by DTR 4.2.8R of the Disclosure and Transparency Rules, being the
information required on related party transactions.
The interim report was approved by the Board of Directors and the above
responsibility statement was signed on its behalf by:
Paul Ensor
Executive Chairman
15 September 2023
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have been deemed
inside information for the purposes of Article 7 of Regulation (EU) No
596/2014 until the release of this announcement.
For further information please visit www.chesterfieldresourcesplc.com
(http://www.chesterfieldresourcesplc.com) or contact:
Chesterfield Resources plc Paul Ensor, Executive Chairman Tel: +44 (0) 7595 219 011
First Equity Limited (Broker) Jason Robertson Tel: +44 (0)207 330 1183
(https://www.brandonhillcapital.com/) Panmure Gordon (UK) Limited (Broker) John Prior & Hugh Rich Tel: +44 (0) 207 886 2500
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Notes 6 months to 30 June 2023 Unaudited 12 months to 31 December 2022 Audited 6 months to 30 June 2022 Unaudited
£ £ £
Continuing operations
Revenue - - 45,132
Administration expenses (148,386) (855,899) (536,739)
Other Gains 38,011 - -
Operating Profit/(Loss) (110,375) (855,899) (491,607)
Impairment - (3,195,730) -
Finance cost (588) (35) -
Other income - 45,132 -
Loss before taxation (110,963) (4,006,532) (491,607)
Deferred tax credit - 347,145 -
Loss for the period (110,963) (3,659,387) (491,607)
Other comprehensive income
Items that may be reclassified to profit or loss
Currency translation differences (39,161) 97,040 137,934
Total other comprehensive income for the period (39,161) 97,040 137,934
Total comprehensive income for the period attributable to equity holders (150,124) (3,562,347) (353,673)
Earnings per share from continuing operations attributable to the equity
owners of the parent
Basic and diluted 5 (0.085)p (2.831)p (0.384)p
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at As at As at
30 June 2023 Unaudited 31 December 2022 Audited 30 June 2022 Unaudited
£ £ £
Notes
Non-Current Assets
Property, plant and equipment - 8,941 25,244
Intangible assets 6 894,336 880,837 5,395,923
Available for Sale Investment 7 494,798 - -
1,389,134 889,778 5,421,167
Current Assets
Trade and other receivables 143,921 162,435 375,008
Cash and cash equivalents 348,243 304,022 663,226
492,164 466,457 1,038,234
Asset held for sale 8 739,143 1,478,287 -
Total Assets 2,620,441 2,834,522 6,459,401
Non-Current Liabilities
Deferred tax liabilities (33,138) (33,138) (380,283)
Current Liabilities
Trade and other payables (39,576) (103,533) (174,693)
Total Liabilities (72,714) (136,671) (554,976)
Net Assets 2,547,727 2,697,851 5,904,425
Capital and Reserves Attributable to
Equity Holders of the Company
Share capital 228,328 228,328 228,328
Share premium 8,919,654 8,919,654 8,919,654
Other reserves 186,780 257,838 298,732
Retained losses (6,787,035) (6,707,969) (3,542,289)
Total Equity 2,547,727 2,697,851 5,904,425
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
Attributable to owners of the Parent
Share capital Share premium Other reserves Retained losses Total equity
£ £ £ £ £
Balance as at 1 January 2022 218,328 8,253,634 160,798 (3,050,682) 5,582,078
Loss for the period - - - (491,607) (491,607)
Other comprehensive income for the year
Items that may be subsequently reclassified to profit or loss
Currency translation differences - - 137,934 - 137,934
Total comprehensive income for the year - - 137,934 (491,607) (353,673)
Share issue 10,000 690,000 - - 700,000
Cost of capital - (23,980) - - (23,980)
Total transactions with owners, recognised in equity 10,000 666,020 - - 676,020
Balance as at 30 June 2022 228,328 8,919,654 298,732 (3,542,289) 5,904,425
Balance as at 1 January 2023 228,328 8,919,654 257,838 (6,707,969) 2,697,851
Loss for the period - - - (110,963) (110,963)
Other comprehensive income for the year
Items that may be subsequently reclassified to profit or loss
Currency translation differences - - (39,161) - (39,161)
Total comprehensive income for the year - - (39,161) (110,963) (150,124)
Options expired during the year - - (31,897) 31,897 -
Total transactions with owners, recognised in equity - - (31,897) 31,897 -
Balance as at 30 June 2023 228,328 8,919,654 186,780 (6,787,035) 2,547,727
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
6 months to 30 June 2023 6 months to 30 June 2022 Unaudited
Unaudited £
£
Notes
Cash flows from operating activities
Loss before taxation (110,963) (491,607)
Adjustments for:
Depreciation - 2,802
Increase/(decrease) in trade and other receivables 18,516 (53,009)
Increase/(decrease) in trade and other payables (63,962) 20,310
Foreign exchange (6,456) 24,022
Net cash used in operations (162,865) (497,482)
Cash flows from investing activities
(Purchase)/Sale of property, plant & equipment - (4,324)
Sale of exploration assets 244,344 -
Exploration and evaluation activities 6 (37,258) (273,959)
Net cash used in investing activities 207,086 (278,283)
Cash flows from financing activities
Cost of share issue - (23,980)
Share issue - 700,000
Net cash generated from financing activities - 676,020
Net decrease in cash and cash equivalents 44,221 (99,745)
Cash and cash equivalents at beginning of period 304,022 762,971
Cash and cash equivalents at end of period 348,243 663,226
NOTES TO THE INTERIM FINANCIAL STATEMENTS
1. General Information
Chesterfield Resources plc is a minerals company exploring primarily for
copper and gold in Canada and Cyprus and listed on the Standard segment of the
Main 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 10545738. The Company's
registered office is 6 Heddon Street, London W1B 4BT.
2. Basis of Preparation
These condensed interim financial statements are for the six months ended 30
June 2023 and have been prepared in accordance with the accounting policies
adopted in the Group's most recent annual financial statements for the year
ended 31 December 2022.
The Group have chosen to adopt IAS 34 "Interim Financial Reporting" in
preparing this interim financial information as adopted by the United Kingdom
and the Disclosure and Transparency Rules of the UK Financial Conduct
Authority. They do not include all the information required in annual
financial statements, and they should be read in conjunction with the
consolidated financial statements for the year ended 31 December 2022 and any
public announcements made by Chesterfield Resources Plc. during the interim
reporting period.
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 International Financial Reporting Standards (IFRS) as adopted by
the United Kingdom.
Statutory financial statements for the period ended 31 December 2022 were
approved by the Board of Directors on 27 April 2023 and delivered to the
Registrar of Companies. The report of the auditors on those financial
statements was unqualified. The condensed interim financial statements are
unaudited and have not been reviewed by the Company's auditor.
Going concern
The Directors, having made appropriate enquiries, consider that adequate
resources exist for the Company to continue in operational existence for the
foreseeable future and that, therefore, it is appropriate to adopt the going
concern basis in preparing the condensed interim financial statements for the
period ended 30 June 2023.
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 Company's 2022 Annual Report and Financial Statements, a copy
of which is available on the Company's website: www.chesterfieldplc.com
(http://www.chesterfieldplc.com) . The key financial risks are liquidity risk,
credit risk, interest rate risk and fair value estimation.
Critical accounting estimates
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 Note 2 of the Company's 2022 Annual Report
and Financial Statements. The nature and amounts of such estimates have not
changed significantly during the interim period.
3. Accounting Policies
A number of new standards, amendments and became effective on 1 January 2023
and have been adopted by the Group. None of these standards have materially
affected the Group.
The same accounting policies, presentation and methods of computation are
followed in the interim consolidated financial information as were applied in
the Group's latest annual audited financial statements except for those that
relate to new standards and interpretations effective for the first time for
periods beginning on (or after) 1 January 2023, and will be adopted in the
2023 annual financial statements. In addition to these the following new
accounting policies have been adopted:
Assets held for sale
Asset are classified as assets held for sale when their carrying amount is to
be recovered principally through a sale transaction and a sale is considered
highly probable. They are stated at the lower of carrying amount and fair
value less costs to sell.
4. Dividends
No dividend has been declared or paid by the Company during the six months
ended 30 June 2023 (six months ended 30 June 2022: £nil).
5. Loss per Share
The calculation of loss per share is based on a retained loss of £110,963 for
the six months ended 30 June 2023 (six months ended 30 June 2022: £491,607)
and the weighted average number of shares in issue in the period ended 30 June
2023 of 130,328,311 (six months ended 30 June 2022: 128,173,615).
No diluted earnings per share is presented for the six months ended 30 June
2023 or six months ended 30 June 2022 as the effect on the exercise of share
options would be to decrease the loss per share.
6. Intangible assets
The movement in capitalised exploration and evaluation costs during the period
was as follows:
Exploration & Evaluation at Cost and Net Book Value £
Balance as at 1 January 2023 880,837
Additions 37,258
Foreign exchange (23,759)
As at 30 June 2023 894,336
7. Available for sale investment
The movement in available for sale investments during the period was as
follows:
Avaliable for sale investments £
Balance as at 1 January 2023 -
4,500,000 shares in Sterling Metals 494,798
As at 30 June 2023 494,798
8. Asset held for sale
On 6th March 2023, the Company announced that they had signed an agreement
with Sterling Metals, a TSX-V and OTCQB listed exploration company, with
regard to Chesterfield's Adeline project in Labrador. Under the agreement
Sterling Metals will purchase an option to acquire full ownership and rights
over the project in exchange for a series of payments of cash and shares for a
total consideration of CAD$800,000 and 9,000,000 shares in Sterling Metals.
Therefore, the Directors have determined that the Adeline licences be
classified as an asset held for sale.
Sterling will pay the total cash consideration in three separate tranches. As
at 30 June 2023, CAD$400,000 (£244,000) and and 4,500,000 shares have been
received by Chesterfield. A final tranche of CAD$400,000 (£230,000) and
4,500,000 shares are to be paid on or before 30 November 2024.
The movement in capitalised exploration and evaluation costs during the period
was as follows:
Asset held for sale £
Balance as at 1 January 2023 1,478,287
Partial sale of Adeline (739,142)
As at 30 June 2023 739,143
The balance of £739,143 is the remaining 50% of Adeline which will be
transferred when the final tranche is received by Chesterfield.
9. Events after the balance sheet date
The Directors believe there to be no significant events after the reporting
date.
10. Approval of interim financial statements
The Condensed interim financial statements were approved by the Board of
Directors on 15 September 2023.
**ENDS**
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