REG - Critical Metals PLC - Interim Results
31/03/2025 07:15
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RNS Number : 7592C Critical Metals PLC 31 March 2025
Critical Metals plc / EPIC: CRTM / Market: Main Market
31 March 2025
Critical Metals plc
("Critical Metals" or the "Company")
Interim Results
Critical Metals plc ("Critical Metals" or the Company"), an investment company
established to target opportunities in the critical and strategic metals
sector, is pleased to announce its interim results for the six-month period
ended December 2024.
Highlights
· In exclusive discussions with NIU Invest SE ("NIU"), with a view
to NIU providing capital for restructuring and to fund further exploration at
Molulu.
· Implemented cost-saving measures, including voluntary salary
reductions at the subsidiary and executive levels.
· Appointed Mr. Jean Pierre Tshienda as Executive Director,
bringing extensive experience in natural resource management, specifically
within the DRC.
· Appointed Mr. Kelvin Williams as Non-Executive Director, who has
proven success in strategic restructuring, project financing, and guiding
companies through periods of operational and financial transformation.
· Continue identifying promising development opportunities at
Molulu, with the potential to expand mineralised copper zones.
Russell Fryer, CEO of Critical Metals said:
"We are firmly focussed on unlocking the inherent value potential of Molulu.
Whilst financial constraints during the period under review have limited our
operational activity, we remain confident in Molulu's value proposition as an
exciting copper asset in a sector experiencing renewed Western interest and
solid copper prices."
Chairman's Statement
The six-month period under review has been one that has focussed on
stabilising our company and positioning us for future growth. This has
involved a financial and corporate restructuring, which has been supported by
NIU Invest SE ("NIU"). As announced in August, September and December 2024,
NIU has provided financial support to our company, and we have been conducting
exclusive discussions with them (subject to the City Code), with a view to NIU
providing capital for future exploration and development at Molulu. We hope to
have resolution on this shortly.
Molulu is an exciting asset, and we have identified clear routes for
exploration progress. Exploration work in H2 2024 identified the presence of
three distinct zones of copper, which give an initial indication of the
untapped and extensive potential at Molulu. O.M. Metals S.A.R.L., ('O.M.
Metals') also renewed our offtake agreement in August 2024 following
favourable copper grades from ore testing, and in November, O.M. Metals
purchased some stockpiled ore which has been achievable thanks to the
rehabilitation of the 28-kilometre public road leading to Molulu.
Whilst operational progress during the period has been slower than
anticipated, we have taken decisive steps to manage costs effectively and
ensure we are well-prepared for future activity. In October 2024, operations
were streamlined at Molulu by reducing the workforce and eliminating
non-essential expenditures. The team we now have in place continue to maintain
site operations efficiently and are working hard to ensure that we are
well-prepared to recommence drilling once capital is secured.
At a board level, we have also implemented cost-saving measures, including
voluntary salary reductions of 25% at the executive level and at subsidiary
levels. Alongside these cuts, we took the strategic decision in December
2024 to expand our Board experience with the appointments of Mr. Jean Pierre
Tshienda as Executive Director and Mr. Kelvin Williams as Non-Executive
Director. Jean Pierre brings extensive experience in natural resource
management, specifically within the DRC having served as a consultant to the
DRC Mining Cadastre where he provided strategic advice on mining governance
and policy formulation. Kelvin has proven success in strategic restructuring,
project financing, and guiding companies through periods of operational and
financial transformation. Their respective skillsets are already proving to be
of great value as we focus on repositioning our company for growth. In
tandem with Jean Pierre and Kelvin's appointments, Mr. Marcus Edwards-Jones
stepped down from his role as a Non-Executive Director. On behalf of the Board
of Directors, I would like to personally express our sincere gratitude to
Marcus for his invaluable guidance and contributions as a non-executive
director over the years. We wish Marcus many future successes.
Looking Ahead
As we look to the future ahead, I am optimistic. We have a strategic asset
with good copper grades, and with the necessary financing we have a clear
development plan. Alongside this, we have a supportive market backdrop as the
global copper market remains strong, driven by increasing demand for
electrification and renewable energy initiatives.
Our immediate priority remains securing the necessary funding to recommence
diamond drilling and exploration activities at Molulu. We are actively
engaging with investors, creditors, and strategic partners to support this
objective. Key upcoming initiatives include:
· Finalising the recapitalisation of Critical Metals to ensure
financial stability for the next phase of growth.
· Once funds are received, the Company plans on purchasing a
diamond drill rig with the plan to drill the most prospective areas at Molulu.
· Appointing a Director General (DG) in the DRC with strong
regulatory expertise, local experience, and fluency in French to enhance our
engagement with local authorities.
We also remain committed to corporate governance, risk mitigation, and
regulatory compliance in the DRC. Recent challenges, including creditor
pressures and operational disruptions, underscore the importance of a robust
governance framework and proactive risk management.
Finally, I would like to extend my sincere gratitude to our shareholders,
employees, and stakeholders for their continued support and extreme patience.
We look forward to providing further updates as we work towards stabilising
operations, securing funding, and advancing our drill programme.
Russell S. Fryer
Executive Chairman & CEO (Chief Executive Officer)
28 March 2025
For further information on the Company please visit www.criticalmetals.co.uk
(http://www.criticalmetals.co.uk/) or contact:
Critical Metals plc Tel: +44 (0)20 7236 1177
Russell Fryer, CEO
St Brides Partners Ltd Tel: +44 (0)20 7236 1177
Financial PR
Consolidated statement of Comprehensive Income for the six months ended 31
December 2024
Notes 6 months to 31 December 2024 (unaudited) 6 months to 31 December 2023 (unaudited)
£ £
Continuing operations
Revenue from continuing operations 3,575 -
Cost of sales - -
Gross Profit 3,575 -
Other expenses (908,052) (922,373)
Exploration expenditure (61,480) (148,240)
Earnings before interest, taxation, depreciation and amortisation (965,957) (1,070,613)
Depreciation (55,756) (26,444)
Finance charge (60,028) -
Interest expenditure (97,671) (40,166)
Loss before taxation (1,179,412) (1,137,223)
Income tax
Profit (Loss) for the year from continuing operations attributable to the (1,179,412) (1,137,223)
owners of the company
Attributable to:
Owners of the company (1,146,675) (1,015,736)
Non-controlling interest (32,737) (121,737)
(1,179,412) (1,137,473)
Other comprehensive income
Translation of foreign operations (18,394) 16,370
Valuation (losses)/gains on fair value through other comprehensive income - -
equity investments
Total other comprehensive profit (loss) (18,394) 16,370
Total comprehensive profit (loss) for the year (1,197,806) (1,121,103)
Total comprehensive profit (loss) attributable to:
Owners of the company (1,165,069) (999,366)
Non-controlling interest (32,737) (121,737)
(1,197,806) (1,121,103)
Earnings per share (basic and diluted) attributable to the equity holders 3 (1.75) (1.59)
(pence)
The consolidated statement of comprehensive income has been prepared on the
basis that all operations are continuing operations.
Consolidated statement of Financial Position for the six months ended 31
December 2024
Notes As at As at
31 December 2024 30 June 2024
(Unaudited) (Audited)
£ £
NON-CURRENT ASSETS
Property, plant & equipment 4,565,791 4,443,497
TOTAL NON-CURRENT ASSETS 4,565,791 4,443,497
CURRENT ASSETS
Trade and other receivables 85,662 70,278
Cash at bank and in hand 47,013 61,116
TOTAL CURRENT ASSETS 132,675 131,394
TOTAL ASSETS 4,698,466 4,574,891
CURRENT LIABILITIES
Trade and other payables 2,222,321 1,682,428
Borrowings 3,693,241 2,911,753
TOTAL LIABILITIES 5,915,562 4,594,181
NET (LIABILITIES)/ASSETS (1,217,096) (19,290)
EQUITY
Called up share capital 336,948 336,948
Share premium account 5,981,996 5,981,996
Share based payment reserve 276,459 276,459
Foreign exchange reserve 34,663 53,057
Retained losses (7,303,117) (6,156,442)
Equity attributable to equity holders of the parent (673,051) 492,018
Non-controlling interest (544,045) (511,308)
TOTAL EQUITY (1,217,096) (19,290)
Consolidated statement of Changes in Equity for the six months ended 31
December 2024
Issued Share Capital Share Premium Share Based Payments Reserve Foreign exchange currency reserve Retained Earnings Total equity attributable to shareholders Non-controlling interest Total Equity
£ £ £ £ £ £ £ £
Loss for the year - - - - (2,489,614) (2,489,614) (296,260) (2,785,874)
Other comprehensive income - - - 9,567 - 9,567 - 9,567
Total comprehensive loss for the year - - - 9,567 (2,489,614) (2,480,047) (296,260) (2,776,307)
Shares issued during the year 25,387 385,327 - - - 410,714 - 410,714
Share issue costs during the year - (10,249) - - - (10,249) - (10,249)
Warrants issued during the year - - 5,199 - - 5,199 - 5,199
Total transactions with owners 25,387 375,078 5,199 - - 405,664 - 405,664
As at 30 June 2024 336,948 5,981,996 276,459 53,057 (6,156,442) 492,018 (511,308) (19,290)
Loss for the period - - - - (1,146,675) (1,146,675) (32,737) (1,179,412)
Other comprehensive income - - - (18,394) - (18,394) - (18,394)
Total comprehensive loss for the year - - - (18,394) (1,146,675) (1,165,069) (32,737) (1,197,806)
Shares issued during the period - - - - - - - -
Share issue costs during the period - - - - - - - -
Warrants issued during the period - - - - - - - -
Total transactions with owners - - - - - - - -
As at 31 December 2024 336,948 5,981,996 276,459 34,663 (7,303,117) (673,051) (544,045) (1,217,096)
Consolidated statement of Cashflows for the 6 month period ended 31 December
2024
31 December 2024 (unaudited) 31 December 2023 (unaudited)
£ £
Cash from operating activities
Loss for the Period (1,179,412) (1,137,473)
Adjustments for:
Depreciation 55,756 26,444
Interest payable 97,627 40,166
Finance charge 34,228
Foreign exchange 84,726 26,147
Operating cashflow before working capital movements (907,075) (1,044,716)
Increase in trade and other receivables (16,542) (48,427)
Increase / (Decrease) increase in trade and other payables 345,121 636,876
Net cash used in operating activities (578,496) (456,267)
Cash from financing activities
Net Proceeds on the issue of shares 687,691 369,369
Net cash from financing activities 687,691 369,369
Cash from investing activities
Payments for development asset -- (262,614)
Purchase of tangible fixed assets (123,298) (1,879)
Net cash used in investing activities (123,298) (264,493)
Net (decrease) / increase in cash and cash equivalents (14,103) (351,393)
Cash and cash equivalents at beginning of year 61,116 411,696
Foreign exchange - 5,956
Cash and cash equivalents at end of period 47,013 66,261
Notes to the financial statements for the 6 months ended 31 december 2024
1. General Information
The condensed consolidated interim financial statements of Critical Metals plc
(the "Company") and its subsidiary (together the "Group") for the six-month
period ended 31 December 2024 have been prepared in accordance with Accounting
Standard IAS 34 Interim Financial Reporting.
The interim report does not include all the notes of the type normally
included in an annual financial report. Accordingly, this report is to be read
in conjunction with the annual report for the year ended 30 June 2024, which
was prepared in accordance with UK adopted International Accounting Standards
(IFRS) and the Companies Act 2006, and any public announcements made by
Critical Metals plc during the interim reporting period and since.
These condensed consolidated interim financial statements do not constitute
statutory accounts as defined in Section 434 of the Companies Act 2006. The
Group's statutory financial statements for the year ended 30 June 2024
prepared under IFRS have been filed with the Registrar of Companies. The
auditor's report on those financial statements was unqualified and did not
contain a statement under Section 498(2) of the Companies Act 2006. These
condensed interim financial statements have not been audited.
Basis of preparation - going concern
The interim consolidated financial statements have been prepared under the
going concern assumption, which presumes that the Group will be able to meet
its obligations as they fall due for the foreseeable future.
At 31 December 2024 the Group had cash reserves of £47,013 (30 June 2024:
£61,116).
The Directors have made an assessment of the Group's ability to continue as a
going concern and are satisfied that the Group has adequate resources to
continue in operational existence for the foreseeable future. The Group,
therefore, continues to adopt the going concern basis in preparing its
consolidated financial statements.
The financial information of the Group is presented in British Pounds Sterling
(£).
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, which are reliable, free from
bias, prudent, complete and represent faithfully the financial position,
financial performance and cash flows of the entity.
The accounting policies adopted are consistent with those of the previous
financial year and corresponding interim reporting period.
Critical accounting estimates and judgements
The preparation of interim consolidated financial information requires
management to make judgements, estimates and assumptions that affect the
application of accounting policies and the reported amounts of assets and
liabilities and the reported amounts of income and expenses during the
reporting period. Although these estimates are based on management's best
knowledge of current events and actions, the resulting accounting estimates
will, by definition, seldom equal related actual results.
In preparing the interim financial information, the significant judgements
made by management in applying the Group's accounting policies and the key
sources of estimation uncertainty were the same as those that applied to the
financial statements for the year ended 30 June 2024.
1.1. New and amended standards adopted by the Group.
A number of new or amended standards became applicable for the current
reporting period. These new/amended standards do not have a material impact on
the Group, and the Group did not have to change its accounting policies or
make retrospective adjustments as a result of adopting these standards.
The Group is not affected materially by the effects of seasonality. Regardless
of this fact comparative figures to the period ending 31 December 2023 have
been included for comparability and increase the comprehensibility of the
financial statements.
The directors have concluded that there are no key assumptions concerning the
future and other key sources of estimation uncertainty at the reporting date
that have a significant risk of causing a material adjustment to the carrying
amounts of assets and liabilities within the next financial year.
2. Segmental analysis
The Group has two reportable segments, Exploration and Corporate, which are
the Group's strategic divisions. For each of the strategic divisions, the
Board reviews internal management reports on a regular basis.
The Group's reportable segments are:
· Exploration: the exploration operating segment is presented as an
aggregate of all the DRC related activity and the associated Mauritian holding
companies.
· Corporate: the corporate segment is the UK head company and the
costs in respect of managing the Group. This includes the cost of director
share options granted by the Company.
The Group generated no external revenue during the period ended 31 December
2024 (2023:£nil).
Segmental results are detailed below:
Exploration Corporate Total
£ £ £
Operating profit / (loss) from continued operations per reportable segment (296,545) (882,867) (1,179,412)
Reportable segment assets 4,590,833 107,633 4,698,466
Reportable segment liabilities 2,221,758 (3,693,804) (5,915,562)
Net assets 2,369,075 (3,586,171) (1,217,096)
3. EARNINGS per share
The calculation of the basic and diluted earnings per share is calculated by
dividing the profit or loss for the year by the weighted average number of
ordinary shares in issue during the year
6 months to 31 December 2024 6 months to 31 December 2023
Loss for the year from continuing operations for the owners of the Company - (1,179,412) (1,015,736)
£
Weighted number of ordinary shares in issue 67,389,680 64,019,261
Basic earnings per share from continuing operations - pence (1.75) (1.59)
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 year presented.
At period end 19,245,303 (2023: 18,884,628) warrants were in issue giving the
rights to purchase shares on a 1:1 basis.
4. Share capital and share premium
Number of Shares on Issue Share Capital £ Share Premium £
Total £
Balance at 30 June 2023 62,312,235 311,561 5,606,918 5,918,479
£0.10 Warrants Exercised 1,100,000 5,500 104,500 110,000
£0.05 Warrants Exercised 1,714,286 8,572 77,143 85,715
Fundraise - £0.215m @ £0.095 2,263,159 11,315 203,684 214,999
Cost of share issues - - (10,249) (10,249)
Balance at 30 June 2024 67,389,680 336,948 5,981,996 6,318,944
Movement for the period - - - -
Balance at 31 December 2024 67,389,680 336,948 5,981,996 6,318,944
The Company has only one class of share. All ordinary shares have equal voting
rights and rank pari passu for the distribution of dividends and repayment of
capital.
About Critical Metals
Critical Metals PLC has acquired a controlling 100% stake in Madini Occidental
Limited, which holds an indirect 70% interest in the Molulu copper/cobalt
project, an ex-producing medium-scale asset in the Katangan Copperbelt in the
Democratic Republic of Congo. In line with its investment strategy of focusing
primarily on known deposits, targeting projects with low entry costs and the
potential to generate short-term cash flow; the Company intends to produce
120,000t/per annum of Copper Oxide Ore.
The Company will continue to identify future assets that are in line with its
stated acquisition objective of low CAPEX and OPEX projects with near-term
production, concentrating on minerals that are perceived to have strategic
importance to future economic growth and generate significant value for
shareholders.
A copy of these results will be made available on the Company's website at
www.critical metals.co.uk.
**ENDS**
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