REG - Critical Metals PLC - Final Results

Critical MetalsAnnouncement

22/12/2021 07:00

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RNS Number : 4123W  Critical Metals PLC  22 December 2021

 

 

 

Critical Metals plc / EPIC: CRTM / Market: Main Market / Sector: Closed End
Investments

 

22 December 2021

Critical Metals plc

("Critical Metals" or the "Company")

 

Final Results

 

 

Critical Metals plc, a mining investment company established to target
opportunities in the overlooked and under-analysed mining sector, is pleased
to announce its Final Results for the year ended 30 June 2021. A copy of this
announcement and the Annual Report for the year ended 30 June 2021 will be
made available on the Company's website at www.criticalmetals.co.uk
(http://www.criticalmetals.co.uk/) .

 

Statement from the Board

I am pleased to present the financial statements for Critical Metals plc for
the year ended 30 June 2021.

After navigating through a long initial public listing process in 2020, during
which the markets experienced significant volatility amidst BREXIT
negotiations and the Covid-19 pandemic, we are delighted to present our first
financial statements as a listed company.

When considering the global macro-environmental uncertainties regarding supply
and demand in the critical metals sector, the need to identify and invest in
the stable supply of metals that will allow economies to operate and grow
becomes increasingly evident. Critical Metals' strategy is to search for
acquisition opportunities in the natural resources sector on known deposits,
and, more specifically, for minerals that are perceived to have strategic
importance to future economic growth.

On 20 May 2021, we announced our intention to purchase a controlling position
in a company that holds the rights to a previously producing copper-cobalt
property in the Democratic Republic of Congo, namely 'Small Scale Mining
License' ("Permis d'Exploitation de Petit Mine") PEPM 14784 (the "Molulu
Project"). We have been completing our due diligence and legal investigations
since the time of this announcement and it is our intention to file for
readmission to the Standard List of the London Stock Exchange in early 2022 as
a mining company enlarged by the acquisition of an indirect controlling
interest in the Molulu Project.

The goal of our Company to become cash flow positive in 2022 and beyond is
still intact, and, looking forward, I am very excited about what the entry
into 2022 will hold for Critical Metals. The Board believes that 2022 will be
a year of significant growth for the Company as we look to advance our
strategy and create value for shareholders.

I would like to thank my fellow Board members and our shareholders for their
support as we travel this exciting journey of building this unique opportunity
into a profitable company.

Financial Overview

Funding

The Company is funded through investment from its shareholders, having
successful raised £800,000 before costs upon its Standard Listing IPO onto
the London Stock Exchange on 29 September 2020, along with the receipt of
£1,090,451 upon the exercise of warrants during the year.

Revenue

The Company has generated no revenue during the year, however is focussing on
acquisition targets that will ultimately generate revenue for the Company in
the relatively near term.

Expenditure

During the year, the Company completed its listing on the London Stock
Exchange and focussed its expenditure on this process, with very minimal
expenditure unrelated to the listing being incurred up to the date of
admission, being 29 September 2020 ("Admission"), including all directors
foregoing salaries until Admission. Since Admission, the Company has focussed
its efforts and expenditure on assessing potential acquisition targets in line
with its strategy, and, since the signing of heads of terms in respect of
the  Molulu Project, on progressing its due diligence in relation to the
Molulu Project and the process for readmitting to the Standard List as an
operating company enlarged by the acquisition of a controlling interest in
such project.

Liquidity, cash and cash equivalents

At 30 June 2021, the Company held £1,483,544 (2020: £62,072) which is all
denominated in pounds sterling.

Dividend

The Directors do not intend to declare a dividend in respect of the period
under review (2020: £nil).

 

 

 

Russell S. Fryer

Executive Chairman

21 December 2021

 

**ENDS**

 

For further information on the Company please visit www.criticalmetals.co.uk
(http://www.criticalmetals.co.uk) or contact:

 

 Russell Fryer                        Critical Metals plc                           Tel: +44 (0)20 7236 1177

 Rory Murphy / James Bellman          Strand Hanson Limited                         Tel: +44 (0)20 7409 3494

                                      Financial Adviser

 Lucy Williams /                      Peterhouse Capital Limited, Corporate Broker  Tel: +44 (0)20 7469 0936

 Duncan Vasey                                                                       Tel: +44 (0)20 7469 0933

 Catherine Leftley / Isabelle Morris  St Brides Partners Ltd,                       Tel: +44 (0)20 7236 1177

                                      Financial PR

 

About Critical Metals

Critical Metals was formed as an investment company and intends to make equity
investments into operators or near-term production operators within the
natural resources development and production sector in the continent of
Africa. It is envisaged that such acquisition or acquisitions will trigger a
reverse takeover in accordance with the listing rules. The Company intends to
search initially for acquisition opportunities in the natural resources sector
on known deposits and more specifically minerals that are perceived to have
strategic importance to future economic growth. Commodities such as antimony,
beryllium, cobalt, copper, fluorspar, gold, rare earth elements, tin,
tungsten, titanium, and vanadium have been identified by several governments
as "critical minerals" and so guaranteeing supplies is seen as a strategic
necessity. The Company therefore believes that the market conditions for these
minerals will remain strong in the short-to-long term.

 

 

 

 

Statement of Comprehensive Income

 

 

                                                                                 Notes  Year ended 30 June 2021      Period ended 30 June 2020

     £
     £
 Revenue
 Revenue from continuing operations                                                     -                            -
                                                                                        -                            -
 Expenditure
 Costs associated with listing                                                   4      (122,306)                    (72,172)
 Other expenses                                                                  4      (225,278)                    (26,121)
                                                                                        (347,584)                    (98,293)

 Loss on ordinary activities before taxation                                            (347,584)                    (98,293)
 Taxation on loss on ordinary activities                                                -                            -
 Loss and total comprehensive income for the year attributable to the owners of         ( 347,584)                   (98,293)
 the company

 Earnings per share (basic and diluted) attributable to the equity holders       8      (1.18)                       (0.69)
 (pence)

 

 

 

 

Statement of Financial Position

 

                              Notes  30 June 2021                          30 June 2020

               £
        £
 CURRENT ASSETS
 Trade and other receivables  9      17,851                                417
 Cash at bank and in hand     10     1,483,544                             62,072
                                     1,501,395                             62,489
 TOTAL ASSETS                        1,501,395                             62,489

 CURRENT LIABILITIES
 Trade and other payables     11     31,055                                94,016
 TOTAL LIABILITIES                   31,055                                94,016

 NET (LIABILITIES) / ASSETS          1,470,340                             (31,527)

 EQUITY
 Called up share capital      12     208,298                               71,428
 Share premium account        12     1,735,315                             68,572
 Share based payment reserve         45,838                                -
 Retained earnings                   (519,111)                             (171,527)
 TOTAL EQUITY                        1,470,340                             (31,527)

 

 

 

 

Statement of Changes in Equity

 

                                                   Notes       Issued Share Capital  Share Premium  SBP Reserve  Retained Earnings  Total Equity
                                                               £                     £              £            £                  £
 Balance at 1 July 2019                                        68,571                51,429         -            (73,234)           46,766
 Loss for the year                                             -                     -              -            (98,293)           (98,293)
 Other comprehensive loss                                      -                     -              -            -                  -
 Total comprehensive loss for the year                         -                     -              -            (98,293)           (98,293)
 Shares issued during the year                                 2,857                 17,143         -            -                  20,000
 Total transactions with owners                                2,857                 17,143         -            -                  20,000

 As at 30 June 2020                                            71,428                68,572         -            (171,527)          (31,527)
 Loss for the year                                             -                     -              -            (347,584)          (347,584)
 Other comprehensive loss                                      -                     -              -            -                  -
 Total comprehensive loss for the year                         -                     -              -            (347,584)          (347,584)
 Shares issued during the year                                 136,870               1,754,331      -            -                  1,891,201
 Share issue costs during the year                             -                     (87,588)       -            -                  (87,588)
 Warrants issued during the year                               -                     -              45,838       -                  45,838
 Total transactions with owners                                136,870               1,666,743      45,838       -                  1,849,451

 As at 30 June 2021                                            208,298               1,735,315      45,838       (519,111)          1,470,340
 Share capital                Amount subscribed for share capital at nominal value.
 Share premium                Amount subscribed for share capital in excess of nominal value.
 Share based payment reserve  Cumulative charge recognised under IFRS 2 in respect of share‐based payment
                              awards.
 Retained earnings            Cumulative other net gains and losses recognised in the financial statements.

 

 

 

 

Statement of Cashflow

 

                                                           30 June 2021      30 June 2020 £

£
 Cash from operating activities
 Loss for the year                                          (347,584)        (98,293)
 Adjustments for:
 Foreign exchange                                          8,009
 Operating cashflow before working capital movements       (339,575)         (98,293)
 Decrease / (increase) in trade and other receivables      (17,435)          4,119
 (Decrease) / increase in trade and other payables         (62,960)          83,778
 Net cash used in operating activities                     (419,970)         (10,396)

 Cash from financing activities
 Proceeds on the issue of shares                           1,849,451         20,000
 Net cash from financing activities                        1,849,451         20,000

 Net increase in cash and cash equivalents                 1,429,481         9,604
 Cash and cash equivalents at being of year                62,072            52,468
 Foreign exchange                                          (8,009)           -
 Cash and cash equivalents at end of period            10  1,483,544         62,072

 

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