REG - Chesterfield Res Plc - Interim Results
31/08/2022 07:01
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RNS Number : 6560X Chesterfield Resources PLC 31 August 2022
Chesterfield Resources PLC / EPIC: CHF / Market: LSE / Sector: Mining
31 August 2022
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 2022.
Chairman's review of year to date
During the first half of 2022 we made steady progress increasing the
shareholder value of both our Cyprus and Canadian assets.
In Cyprus we followed up on the strong results from the Westline target area
announced in December with a further set of positive assay results released in
announced in February; assay results which confirmed a 12km polymetallic
gold-rich geological trend ("The Westline Trend") that links target areas
Orchard, Evlim and Evlim South and Westline. This area has been the focus of
our work during 2022. Work during 2022 has consisted of further field work and
targeting for future drilling in the area. Chesterfield maintains a strong
physical presence in Cyprus with two geologists in place on the island for
most of the year.
In Canada, we started the year with positive results from our first field
study at Adeline, which included some high-grade copper rock chip samples
collected, a comprehensive desktop review of the Adeline historical data set
to be used in the identification of future drill targets. In March we
published a NI-43-101 report on the Adeline project, which will be essential
in any future effort to attract interest for the project in Canada. Efforts to
raise funds for Adeline through a Canadian listing and share issue there were
abandoned due to poor market conditions in August in favour of an alternative
strategy of seeking project level funding instead. Management intend to
complete a process that would introduce third party financial and technical
support during 2022.
We have focussed heavily upon funding the business during 2022, commencing
with a £700,000 equity raise in February. The Board and Management are
comfortable with our immediate cash position but mindful of the difficult
capital market conditions and have thus successfully instituted a programme to
cut ongoing running and Board costs by approximately 50%. In light of the
difficult market conditions, Management and Board are mindful to avoid any
unnecessarily dilutive financing in the near future.
Financials
As is to be expected with an exploration company, for the six-month period
ended 30 June 2022 the Group is reporting a pre-tax loss of £491,607 (six
months ended 30 June 2021: loss of £433,538). The Group's net cash balance as
at 30 June 2022 was £663,226 (30 June 2021: £1,504,973).
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 EU;
· 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
31 August 2022
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 (https://www.brandonhillcapital.com/) Jason Robertson Tel: +44 20 7330 1883
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Notes 6 months to 30 June 2022 Unaudited 6 months to 30 June 2021 Unaudited
£ £
Continuing operations
Revenue 45,132 -
Administration expenses (536,739) (433,538)
Operating loss (491,607) (433,538)
Income tax - -
Loss for the period (491,607) (433,538)
Other comprehensive income
Items that may be reclassified to profit or loss
Currency translation differences 137,934 (75,349)
Total comprehensive income for the period (353,673) (508,887)
Total comprehensive income for the period attributable to equity holders (353,673) (508,887)
Earnings per share from continuing operations attributable to the equity
owners of the parent
Basic and diluted 5 (0.384)p (0.425)p
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at As at As at
30 June 2022 Unaudited 31 December 2021 Audited 30 June 2021 Unaudited
£ £ £
Notes
Non-Current Assets
Property, plant and equipment 25,244 23,208 29,160
Intangible assets 6 5,395,923 5,008,562 2,847,310
5,421,167 5,031,770 2,876,470
Current Assets
Trade and other receivables 375,008 322,003 154,325
Cash and cash equivalents 663,226 762,971 1,504,973
1,038,234 1,084,974 1,659,298
Total Assets 6,459,401 6,116,744 4,535,768
Non-Current Liabilities
Deferred tax liabilities (380,283) (380,283) (127,451)
Current Liabilities
Trade and other payables (174,693) (154,383) (162,912)
Total Liabilities (554,976) (534,666) (290,363)
Net Assets 5,904,425 5,582,078 4,245,405
Capital and Reserves Attributable to
Equity Holders of the Company
Share capital 228,328 218,328 199,911
Share premium 8,919,654 8,253,634 6,492,731
Other reserves 298,732 160,798 184,851
Retained losses (3,542,289) (3,050,682) (2,632,088)
Total Equity 5,904,425 5,582,078 4,245,405
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
Attributable to owners of the Parent
Note Share capital Share premium Other reserves Retained losses Total equity
£ £ £ £ £
Balance as at 1 January 2021 199,711 6,482,931 201,776 (2,198,550) 4,685,868
Loss for the period - - - (433,538) (433,538)
Other comprehensive income for the year
Items that may be subsequently reclassified to profit or loss
Currency translation differences - - (75,349) - (75,349)
Total comprehensive income for the year - - (75,349) (433,538) (508,887)
Grant of options - - 58,424 - 58,424
Option exercise 200 9,800 - - 10,000
Total transactions with owners, recognised in equity 200 9,800 58,424 - 68,424
Balance as at 30 June 2021 199,911 6,492,731 184,851 (2,632,088) 4,245,405
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 10,000 666,020 - - 676,020
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
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
6 months to 30 June 2022 6 months to 30 June 2021 Unaudited
Unaudited £
£
Notes
Cash flows from operating activities
Loss before taxation (490,069) (433,538)
Adjustments for:
Share based payments 1,980 58,424
Depreciation - 1,147
Increase/(decrease) in trade and other receivables (53,269) 10,473
Increase/(decrease) in trade and other payables 18,810 (74,008)
Foreign exchange (127,658) 5,973
Net cash used in operations (650,206) (431,529)
Cash flows from investing activities
Purchase of property, plant & equipment (1,461) (18,115)
Exploration and evaluation activities 6 (275,821) (494,239)
Interest Received (48,224) -
Loans granted to subsidiary undertakings 199,947 -
Net cash used in investing activities (125,559) (512,354)
Cash flows from financing activities
Option exercise - 10,000
Cost of share issue (23,980) -
Share issue 700,000 -
Net cash generated from financing activities 676,020 10,000
Net decrease in cash and cash equivalents (99,745) (933,883)
Cash and cash equivalents at beginning of period 762,971 2,438,856
Cash and cash equivalents at end of period 663,226 1,504,973
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 Suite 1, 15 Ingestre Place, London, W1F 0DU.
2. Basis of Preparation
The condensed interim financial statements have been prepared in accordance
with IAS 34 "Interim Financial Statements" as adopted by the United Kingdom
and the Disclosure and Transparency Rules of the UK Financial Conduct
Authority. The condensed interim financial statements should be read in
conjunction with the annual financial statements for the period ended 31
December 2021, which have been prepared in accordance with International
Financial Reporting Standards (IFRS) in conformity with the requirements of
the Companies Act 2006.
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 2021 were
approved by the Board of Directors on 27 April 2022 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 2022.
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 2021 Annual Report and Financial Statements, a copy
of which is available on the Company's website:
www.chesterfieldresourcesplc.com
(file:///C%3A/Users/jamesmahony/Dropbox%20(Westend)/-Chesterfield/Chesterfield%20-%20Financial/FY2019/190630%20Accounts/www.chesterfieldresourcesplc.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 2021 Annual Report
and Financial Statements. The nature and amounts of such estimates have not
changed significantly during the interim period.
3. 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 period ended 31 December 2021.
3.1 Changes in accounting policy and disclosures
(a) New and amended standards mandatory for the first time for the financial
year beginning 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 30 June 2021 but did not result in any material changes to the financial
statements of the Group.
(b) New standards, amendments and Interpretations in issue but not yet
effective or not yet endorsed and not early adopted
The standards and interpretations that are issued, but not yet effective, up
to the date of issuance of the condensed interim financial statements are
listed below. The Company intends to adopt these standards, if applicable when
they become effective.
Standard Impact on initial application Effective date
IFRS 3 (amendments) Reference to Conceptual Framework 1 January 2022
IAS 37 (amendments) Onerous contracts 1 January 2022
IAS 16 (amendments) Proceeds before intended use 1 January 2022
Annual improvements 2018-2020 Cycle 1 January 2022
IAS 8 (amendments) Accounting estimates 1 January 2023
IAS 1 (amendments) Classification of Liabilities as Current or Non-Current. 1 January 2023
*Not yet endorsed by the UK.
The Company is evaluating the impact of the new and amended standards above.
The Directors believe that these new and amended standards are not expected to
have a material impact on the Company's results or shareholders' funds.
4. Dividends
No dividend has been declared or paid by the Company during the six months
ended 30 June 2022 (six months ended 30 June 2021: £nil).
5. Loss per Share
The calculation of loss per share is based on a retained loss of £491,607 for
the six months ended 30 June 2022 (six months ended 30 June 2021: £433,538)
and the weighted average number of shares in issue in the period ended 30 June
2022 of 128,173,615 (six months ended 30 June 2021: 102,095,642).
No diluted earnings per share is presented for the six months ended 30 June
2022 or six months ended 30 June 2021 as the effect on the exercise of share
options would be to decrease the loss per share.
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 £
Balance as at 1 January 2022 5,008,562
Additions 273,959
Foreign exchange 113,402
As at 30 June 2022 5,395,923
7. Events after the balance sheet date
The Directors believe there to be no significant events after the reporting
date.
8. Approval of interim financial statements
The Condensed interim financial statements were approved by the Board of
Directors on 31 August 2022.
**ENDS**
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