REG - Chesterfield Res PLC - Half-year Report
26/09/2024 07:00
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RNS Number : 6942F Chesterfield Resources PLC 26 September 2024
Chesterfield Resources PLC / EPIC: CHF / Market: LSE / Sector: Mining
26 September 2024
CHESTERFIELD RESOURCES PLC
("Chesterfield" or the "Company")
Interim Results
Chesterfield Resources PLC, the LSE listed mineral exploration company is
pleased to announce its interim results for the six months ended 30 June
2024.
Chairman's review of year to date
The most pleasing development since our year end report has been the
conclusive disposal of our interest in the Adeline project. The expenditure
obligations and the cost of exploration has been removed from Chesterfield's
books whilst a proportion of any future success has been retained. In addition
Chesterfield will enjoy a similar participation in an additional very exciting
Copper project in Eastern Canada. Coupled with a direct cash receipt this
represents an excellent outcome for Chesterfield shareholders.
In summary, post period end, Chesterfield received CAD$200,000 and an
additional 8.5m shares in Sterling Metals (SAG.V). The result is that
Chesterfield owns approximately 5% of Sterling Metals. In August of this year
Sterling Metals provided an update on its exploration activities at the Copper
Road project, the highlights of which included an extensive soil analysis, an
airborne magnetic survey, LiDAR mapping and a digitisation of historical data.
It is hoped that the efforts to identify priority copper exploration zones
will result in attractive targets for later drilling.
In Cyprus activity remains modest as the company continues to evaluate the
options with respect to the existing licences and possibly alternative
exploration options in the country. This may include a review of the licence
portfolio that means that existing licences are relinquished and other options
are considered. Several operators are present in Cyprus and it has long made
sense to consider some form of collaboration and efficient ways of
exploration.
The Board continues to evaluate numerous opportunities that could complement
the existing activities or possibly be in new areas and will update the market
should any develop into a significant consideration.
Costs continue to be aggressively controlled and that includes a deferral of
most of the Board salaries.
Financials
As is to be expected with an exploration company, for the six-month period
ended 30 June 2024 the Group is reporting a pre-tax loss of £187,138 (six
months ended 30 June 2023: loss of £110,963). The Group's net cash balance as
at 30 June 2024 was £47,074 (30 June 2023: £348,243). Post period end, an
additional £111,653 (CAD$200,000) was received in relation to the sale of
Adeline.
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:
Kashif Afzal
Executive Chairman
26 September 2024
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.chesterfieldplc.com
(http://www.chesterfieldplc.com) or contact:
Chesterfield Resources plc Kashif Afzal, Executive Chairman Email: kashif@chesterfieldplc.com
Peterhouse Capital Limited (Broker) Charles Goodfellow Tel: +44 (0) 2074 690 930
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Notes 6 months to 30 June 2024 Unaudited 12 months to 31 December 2023 Audited 6 months to 30 June 2023 Unaudited
£ £ £
Continuing operations
Revenue - - -
Administration expenses (261,419) (375,596) (148,386)
Other gains 9,661 - 38,011
Operating Profit/(Loss) (251,758) (375,596) (110,375)
Impairment - (897,395) -
Finance cost - - (588)
Gain/(loss) on asset held for sale 7 40,123 (368,736) -
Finance income - (609)
Unrealised fair value gain/(loss) on available for sale investments 6 24,497 (269,519) -
Loss before taxation (187,138) (1,911,855) (110,963)
Deferred tax credit - 33,138 -
Loss for the period (187,138) (1,878,717) (110,963)
Other comprehensive income
Items that may be reclassified to profit or loss
Currency translation differences 9,900 (9,831) (39,161)
Total other comprehensive income for the period 9,900 (9,831) (39,161)
Total comprehensive income for the period attributable to equity holders (177,238) (1,888,548) (150,124)
Earnings per share from continuing operations attributable to the equity
owners of the parent
Basic and diluted 5 (0.14)p (1.442)p (0.085)p
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at As at As at
30 June 2024 Unaudited 31 December 2023 Audited 30 June 2023 Unaudited
£ £ £
Notes
Non-Current Assets
Intangible assets - - 894,336
Available for Sale Investment 6 145,432 133,425 494,798
145,432 133,425 1,389,134
Current Assets
Trade and other receivables 148,945 128,275 143,921
Cash and cash equivalents 47,074 278,675 348,243
196,019 406,950 492,164
Asset held for sale 7 410,530 370,407 739,143
Total Assets 751,981 910,782 2,620,441
Non-Current Liabilities
Deferred tax liabilities - - (33,138)
Current Liabilities
Trade and other payables (27,096) (101,479) (39,576)
Total Liabilities (27,097) (101,479) (72,714)
Net Assets 724,885 809,303 2,547,727
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 203,635 100,915 186,780
Retained losses (8,626,732) (8,439,594) (6,787,035)
Total Equity 724,885 809,303 2,547,727
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 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
Balance as at 1 January 2024 228,328 8,919,654 100,915 (8,439,594) 809,303
Loss for the period - - - (187,138) (187,138)
Other comprehensive income for the year
Items that may be subsequently reclassified to profit or loss
Currency translation differences - - 9,900 - 9,900
Total comprehensive income for the year - - 9,900 (187,138) (177,238)
Options granted during the year - - 92,820 - 92,820
Total transactions with owners, recognised in equity - - 92,820 - 92,820
Balance as at 30 June 2024 228,328 8,919,654 203,635 (8,626,732) 724,885
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
6 months to 30 June 2024 6 months to 30 June 2023 Unaudited
Unaudited £
£
Notes
Cash flows from operating activities
Loss before taxation (187,138) (110,963)
Adjustments for:
Loss/(gain) on asset held for sale (40,123) -
Unrealised fair value loss/(gain) on available for sale investments (12,007) -
Share options expense 92,820
Increase/(decrease) in trade and other receivables (15,941) 18,516
Increase/(decrease) in trade and other payables (79,112) (63,962)
Foreign exchange 9,900 (6,456)
Net cash used in operations (231,601) (162,865)
Cash flows from investing activities
Sale of exploration assets - 244,344
Exploration and evaluation activities - (37,258)
Net cash used in investing activities - 207,086
Cash flows from financing activities
Net cash generated from financing activities - -
Net decrease in cash and cash equivalents (231,601) 44,221
Cash and cash equivalents at beginning of period 278,675 304,022
Cash and cash equivalents at end of period 47,074 348,243
NOTES TO THE INTERIM FINANCIAL STATEMENTS
1. General Information
The principal activity of Chesterfield Resources plc (the 'Company') and its
subsidiaries (together the 'Group') is the exploration and development of
precious and base metals. The Company is a public limited Company whose shares
were admitted to the Standard listing segment of the Main market of the London
Stock Exchange on 29 August 2017. The Company is incorporated and domiciled in
England.
The address of its 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 2024 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 2023.
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 2023 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 2023 were
approved by the Board of Directors on 29 April 2024 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 2024.
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 2023 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 2023 Annual Report
and Financial Statements. The nature and amounts of such estimates have not
changed significantly during the interim period.
3. Accounting Policies
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 2024, and will be adopted in the
2024 annual financial statements.
A number of new standards, amendments and became effective on 1 January 2024
and have been adopted by the Group. None of these standards have materially
affected the Group.
4. Dividends
No dividend has been declared or paid by the Company during the six months
ended 30 June 2024 (six months ended 30 June 2023: £nil).
5. Loss per Share
The calculation of loss per share is based on a retained loss of £187,138 for
the six months ended 30 June 2024 (six months ended 30 June 2023: £110,963)
and the weighted average number of shares in issue in the period ended 30 June
2024 of 130,328,311 (six months ended 30 June 2023: 130,328,311).
No diluted earnings per share is presented for the six months ended 30 June
2024 or six months ended 30 June 2023 as the effect on the exercise of share
options would be to decrease the loss per share.
6. 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 2024 133,425
Disposal of shares (12,490)
Unrealised gain on available for sale investment 24,497
As at 30 June 2024 145,432
7. 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 determined that the Adeline licences be classified as
an asset held for sale as at 31 December 2022.
Under the terms of the option Sterling will pay the total cash consideration
in three separate tranches: CAD$100,000 upon signing of the agreement,
CAD$300,000 following TSX approval of the deal, and a final CAD$400,000 to be
paid on or before 30 November 2024. Further non cash consideration of
9,000,000 shares in Sterling Metals will be issued to Chesterfield in two
equal lots of 4,500,000 shares. The first tranche following and subject to
receipt of permission from the TSX-V authorities to complete the deal, and the
second tranche to be issued on or before 30 November 2024. Chesterfield's
ability to sell its shares in Sterling is restricted according to certain
terms detailed in the agreement.
In the year ended 31 December 2022 the Directors undertook an impairment
assessment of the disposal group's assets in accordance with IFS 5 and
concluded that the asset's carrying value was in excess of their fair value
less costs to sell. As such, an impairment of £241,060 was recognised which
reflected the 31 December 2023 value of the remaining shares that could be
received under the agreement.
At 18 June 2024, the Company announced an agreement to complete the sale of
the Adeline project to Sterling Metals for the following: a cash payment of
CAD$200,000 and the issue of an additional 8,500,000 Sterling Shares. As at 30
June, the cash and share consideration remained outstanding to be received by
the Company and therefore, remain classified as an asset held for sale. The
consideration was received post period end, refer to note 8.
The movement in capitalised exploration and evaluation costs during the period
was as follows:
Asset held for sale £
Balance as at 1 January 2024 370,407
Gain on asset held for sale 40,123
As at 30 June 2024 410,530
The balance of £410,530 is the combination of the 8,500,000 share
consideration and CAD$200,000 cash consideration to be received by the
Company.
8. Events after the balance sheet date
On 9 July 2024, the Company received consideration of CAD$200,000 and an
additional 8,500,000 shares in Sterling Metals (SAG.V) to complete the sale of
the Adeline asset.
9. Approval of interim financial statements
The Condensed interim financial statements were approved by the Board of
Directors on 25 September 2024.
**ENDS**
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