REG - Critical Mineral - Annual Financial Report
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RNS Number : 7177G Critical Mineral Resources PLC 30 April 2025
30 April 2025
Critical Mineral Resources PLC
('CMR' or the 'Company')
Annual Results for the Year Ended 31 December 2024
Critical Mineral Resources PLC ('CMR' or the 'Company'), the exploration and
development company focused on critical metals and minerals in Morocco is
pleased to announce its audited results for the year ended 31 December 2024.
The Report and Accounts for the year ended 31 December 2024, are now available
on the Company's website at www.cmrplc.com (http://www.cmrplc.com) , a copy
will also shortly be made available on the FCA's National Storeage Mechanism
("NSM") in electronic format, as required under DTR obligations.
Critical Mineral Resources PLC info@cmrplc.com (mailto:info@cmrplc.com)
Charles Long, Chief Executive Officer
Novum Securities +44 (0) 20 7399 9425
Jon Belliss
Chief Executive Officer's Report
With Cyprus behind us, during 2024 we focused solely on developing the
Moroccan operations and our portfolio of exploration and development permits.
This involved field work on the Critical Mineral Resources ("CMR") portfolio,
which sits within our subsidiary Atlantic Research Minerals, but primarily
consisted of the assessment of multiple base metals and speciality metals
opportunities across the country. By late Q3 the Board had started
negotiations with the owner of what we believe to be a special copper
development opportunity, a view based on the style of mineralisation, the
scale potential and the trenching and mapping work completed by the current
owner. We also collected our own data during several months of due diligence
and formed our own assessment on the deposit's metallurgy.
We actually first visited the project in Q2 2023 and expressed our interest in
entering a joint venture shortly afterwards. However, the owner wanted to
complete its work programme to understand the grade and scale potential, and
the project's overall economic feasibility, an internal study which it
completed and shows excellent financial returns.
Our small team, which although sadly not omniscient, believes there is
potential for many very good metals projects in Morocco, yet is very confident
that this project is amongst the best. Negotiations have continued into Q1
2025 culminating in us entering into an exclusive, conditional term sheet
which, once conditions have been satisfied will allow us to proceed with the
formal transaction. Due to the work carried out in 2023 and 2024, the
potential transaction has substantial exploration history including trenching
and limited drilling which demonstrate continuity and ore-grade copper over a
multi kilometre strike length. The orebody is shallow, gently dipping, open
down dip and supportive of low Capex development and a very significant
discovery.
The permits have been secured through an exclusivity agreement, and the target
is a large copper deposit. The project is an analogue of an existing large and
proximal development project, and the Board is confident this conditional
transaction will transform CMR.
An initial exploration target of 100,000 to 200,000 tonnes of contained copper
equivalent at circa 1.20%, open pittable and shallow underground, has been
calculated by our team. Although this is a target, and there is both upside
and downside risk to this number, the work undertaken thus far strongly
suggests whatever happens with the drill bit, there is sufficient tonnage and
grade to take this project into production on an industrial scale. This fits
perfectly with CMR's main strategy of securing one or more high quality
development opportunities to complement the earlier stage projects in the
portfolio.
I believe the project represents one of the best undeveloped copper projects
in Morocco and is transformational for CMR. Although, the
Company cannot yet provide a detailed update until the conditions are met,
the CMR Board would like to assure investors it will provide more
details and positive news shortly, once the outstanding conditions have been
achieved. This will be followed by an exciting drill programme which once
started is likely to continue until the end of 2025 and into 2026. Given the
shallow nature of the mineralisation, we anticipate low cost drilling and a
quick turnaround from drilling to assay results.
Other activities during the year included a review of the Hesperis Portfolio,
due diligence at the high grade silver Igli Project and building up the metals
and minerals trading business. These remain important to CMR and we will
provide more material updates in due course. However, we have been
prioritising our time and most of our capital on securing this company-making
copper transaction, carrying out the due diligence and investments necessary
to deliver a signed and announced formal earn-in agreement in the short term.
Consolidated Statement of Profit or Loss and Other Comprehensive Income
Year ended 31 December 2024 Year ended 31 December 2023
Notes £ £
Continuing operations:
Administrative expenses 6 (792,656) (1,025,353)
Finance costs 7 (38,203) (5,204)
Interest income 8,442 15,076
Operating loss and loss before income tax (822,417) (1,015,481)
Income tax expense 9 - -
Loss after taxation (822,417) (1,015,481)
Total loss from continuing operations (822,417) (1,015,481)
(Loss)/gain from discontinued and disposed operations 19 (106,263) 1,263,579
(Loss)/profit for the year (928,680) 248,098
Total (loss)/profit is attributable to:
Owners of Critical Mineral Resources plc (914,079) 255,564
Non-controlling interests (14,601) (7,466)
(928,680) 248,098
Other comprehensive income:
Items that may be reclassified to profit or loss:
Exchange differences on translation of continuing/ discontinued operations (5,690)
20 56
Total comprehensive (loss)/income for the year (934,370) 248,154
Total comprehensive (loss)/income is attributable to:
Owners of Critical Mineral Resources plc (920,493) 255,620
Non-controlling interests (13,877) (7,466)
(934,370) 248,154
Total comprehensive (loss)/income attributable to Owners of Critical Mineral
Resources plc:
Continuing operations (814,230) (1,007,959)
Discontinued operations (106,263) 1,263,579
(920,493) 255,620
Earnings per share:
Total basic and diluted (loss)/profit per share (£):
Continuing operations 10 (0.012) (0.020)
Continuing and discontinued operations 10 (0.013) 0.004
Consolidated Statement of Financial Position
As at 31 December 2024 As at 31 December 2023
ASSETS Notes £ £
Non-current assets
Intangible fixed assets 11 2,331 2,331
Tangible fixed assets 12 54,699 80,325
Total non-current assets 57,030 82,656
Current assets
Other receivables 14 117,533 143,634
Cash and cash equivalents 70,073 24,785
Total current assets 187,606 168,419
Total assets 244,636 251,075
LIABILITIES
Non-current liabilities
Lease liabilities 16 (34,980) (53,494)
Total non-current liabilities (34,980) (53,494)
Current liabilities
Trade and other payables 15 (244,983) (257,894)
Convertible loan notes 15 (215,560) -
Lease liabilities 12 (23,584) (23,584)
Total current liabilities (484,127) (281,478)
Total liabilities (519,107) (334,972)
Net liabilities (274,471) (83,897)
EQUITY
Share capital 17 1,149,318 612,113
Share premium 17 5,913,081 5,840,002
Other equity 18 117,141 -
Share-based payments reserve 39,222 34,584
Foreign exchange reserve 20 (6,358) 56
Retained earnings (7,467,704) (6,565,358)
Capital and reserves attributable to owners of Critical Mineral Resources plc (255,300) (78,603)
Non-controlling interests (19,171) (5,294)
Total equity (274,471) (83,897)
Consolidated Statement of Changes in Equity
Share capital Share premium Other equity Share-based payment reserve Retained earnings Foreign exchange reserve Non-controlling interests Total
£ £ £ £ £ £ £ £
Balance as at 31 December 2022 612,113 5,840,002 - 68,706 (6,856,948) 212,323 (32,756) (156,560)
Comprehensive income
Loss for the year - - - - 255,564 - (7,466) 248,098
Exchange differences on translation of foreign operations - - - - - (1,108) 1,164 56
Total comprehensive income for the year - - - 255,564 (1,108) (6,302)
- 248,154
Transactions with owners in their capacity as owners
Elimination of NCI and foreign exchange on disposal - - - - - (211,159) 33,764 (177,395)
Share-based payments - - - 1,904 - - - 1,904
Cancelled warrants - - - (36,026) 36,026 - - -
Total transactions with owners recognised directly in equity - - - (34,122) 36,026 (211,159) 33,764 (175,491)
Balance as at 31 December 2023 612,113 5,840,002 - 34,584 (6,565,358) 56 (5,294) (83,897)
Comprehensive income
Loss for the year - - - - (914,079) - (14,601) (928,680)
Exchange differences on translation of foreign operations - - - - - (6,414) 724 (5,690)
Total comprehensive income for the year - - - - (914,079) (6,414) (13,877) (934,370)
Transactions with owners in their capacity as owners
Issue of shares 537,205 86,775 - - - - - 623,980
Gifted shares issued - - 117,141 - - - - 117,141
Cost of shares issued - (13,696) - - - - - (13,696)
Warrant charge - - - 4,945 - - - 4,945
Share-based payments - - - 11,426 - - - 11,426
Lapsed warrants - - - (11,733) 11,733 - - -
Total transactions with owners recognised directly in equity 537,205 73,079 117,141 4,638 11,733 - - 743,796
Balance as at 31 December 2024 1,149,318 5,913,081 117,141 39,222 (7,467,704) (6,358) (19,171) (274,471)
Consolidated Statement of Cash Flows
Year ended 31 December 2024 Year ended 31 December 2023
Notes £ £
Cash flow from operating activities
(Loss)/profit for the period before taxation (928,680) 248,098
Adjustments for:
Interest paid 38,203 5,204
Interest income (8,442) (15,076)
Foreign exchange movements (1,225) 30,287
Gain on disposed group subsidiaries - (1,342,841)
Share-based payments 111,861 1,904
ECL provision 106,263 79,256
Depreciation 12 25,626 55,197
Operating cash flows before movements in working capital
(656,394) (937,971)
Increase in trade and other receivables (80,162) (14,129)
(Decrease)/increase in trade and other payables (12,911) 153,711
Net cash used in operating activities (749,467) (798,389)
Cash flow from investing activities
Payment for acquisition of subsidiary - (7,974)
Proceeds from sale of subsidiary - 257,641
Deposit on potential acquisition - 500,000
Net cash inflow from investing activities - 749,667
Cash flow from financing activities
Proceeds from issue of shares 17 153,029 -
Proceeds from issue of gifted shares 18 100,233 -
Cost of share issue 17 (13,696) -
Finance lease payments (18,514) (63,307)
Interest paid (5,268) (5,204)
Interest and income received 3,971 -
Proceeds from CLNs 15 575,000 -
Net cash inflow/(outflow) from financing activities 794,755 (68,511)
Net increase/(decrease) in cash and cash equivalents 45,288 (117,233)
Cash and cash equivalent at beginning of period 24,785 142,018
Cash and cash equivalent at end of period 70,073 24,785
General information
Critical Mineral Resources plc (the "Company") is incorporated and domiciled
in England and Wales with Registered Number 11043077 under the Companies Act
2006. The Company was incorporated on 1 November 2017 under the name Leopard
Mineral Investments Limited as a private limited company and subsequently
re-registered as a public limited company on 9 January 2018; and changed its
name to Caerus Mineral Resources plc on 18 September 2018 and then Critical
Mineral Resources Plc on 17 August 2023.
The principal activity of the Group is the exploration for, and development of
mineral resources, including in Morocco, and the identification of future
acquisition targets in the same industry. The Company's registered office is
at Eccleston Yards, 25 Eccleston Place, London, SW1W 9NF.
Basis of preparation
The consolidated financial statements have been prepared in accordance with
UK-adopted international accounting standards and requirements of the
Companies Act 2006. The Financial Statements have also been prepared under the
historical cost convention, as modified by the revaluation of financial assets
at fair value through profit or loss.
The functional currency for each entity in the Group is determined as the
currency of the primary economic environment in which it operates. The
functional currency of the parent company CMR is Pounds Sterling (£) as this
is the currency that finance is raised in. The functional currency of its
Moroccan subsidiary ARM, which was acquired on 3 July 2023, is the Moroccan
Dirham, as this is the currency that mainly influences labour, material and
other costs of providing services. The Group has chosen to present its
consolidated financial statements in Pounds Sterling (£), as the Directors
believe it is a more convenient presentational currency for users of the
consolidated financial statements. Foreign operations are included in
accordance with the policies set out below.
The preparation of financial statements in accordance with UK-adopted
International accounting standards requires the use of certain critical
accounting estimates. It also requires management to exercise its judgement in
the process of applying the Group's accounting policies. The areas involving a
higher degree of judgement or complexity, or areas where assumptions and
estimates are significant to the financial information are disclosed in Note
4.
Going concern
The financial statements have been prepared under the going concern
assumption. Under the going concern assumption, an entity is ordinarily viewed
as continuing in business for at least the 12 month period from the date of
Board approval of the financial statements, with neither the intention nor
the necessity of liquidation, ceasing trading or seeking protection from
creditors pursuant to laws or regulations. The Group is not currently
generating revenues and therefore an operating loss has been reported and is
expected in the 12 months subsequent to the date of these financial
statements.
On 10 March 2025, the Company announced it had signed an investment agreement
with Gilini Holdings Ltd (the "Investor") which has committed to an investment
of up to £2,500,000, of which £2,075,000 is structured to have an average
price of 1.48p. The first £425,000 investment was received by the Company in
March 2025. The Subsequent Finance is contingent on the Company entering into
a formal agreement on one or more development projects in Morocco, most likely
to be copper or manganese. On 20 March 2025, the Company announced that it had
secured an additional £462,474 (US$600,000) through the issue of convertible
loan notes, convertible into ordinary shares in the Company at £0.0145 per
share, accruing interest of 5% per annum with a redemption date of 31 December
2025.
The Group is reliant on the receipt of financing both through existing
arrangements entered into post-year end as set out above, as well as on
securing further financing in the 12-month period following the approval of
the financial statements, in order to fund working capital requirements and
any other project investment. Therefore, this indicates that a material
uncertainty exists that may cast significant doubt on the Group's and parent
Company's ability to continue as a going concern.
The Group and Company has included these funds in its cash flow projections
for the twelve month period from the date of this report, and based on this
review, and after considering reasonably possible operational downside
sensitivities and uncertainties, the Board, whilst acknowledging this material
uncertainty, which the auditors make reference to in their audit report,
remains confident that this subsequent financing will be received and
therefore have concluded there is a reasonable expectation that the Group has
access to adequate resources to continue in operational existence for the
foreseeable future. For this reason, the Directors have adopted the going
concern basis in preparing the financial statements.
Events after the reporting date
On 10 March 2025, the Company announced it had signed an investment agreement
with Gilini Holdings Ltd (the "Investor") which has committed to an investment
of up to £2,500,000, of which £2,075,000 is structured to have an average
price of 1.48p.
The investment will be used to fund project acquisitions, working capital and
to expand its commodities trading venture. The Company will continue to focus
all its efforts in Morocco.
The first £425,000 investment, which has been received by the Company, is
made via the issue of convertible loan notes, convertible into ordinary shares
of the Company at £0.011 per share, maturing on 31 December 2028. The CLNs
attract interest of 15% pa and have one for two warrants attached to each
share represented by the principal amount of CLNs. Each of the warrants will
be exercisable at a price of £0.013 until 31 December 2028 ("First Tranche
CLNs").
The second tranche of £1,325,000 is expected in the second quarter of 2025
and will consist of a £825,000 subscription for Ordinary Shares at a price of
1.45p and £500,000 through a second convertible loan instrument ("Second
Tranche Investment").
The third tranche of £750,000 will be invested in the first quarter of 2026
through a subscription of ordinary Shares at a price of 1.53p.
The second and third tranches are contingent on the Company entering into a
formal agreement on one or more development projects in Morocco, most likely
to be copper or manganese. The Investor may choose to accelerate the
Subsequent Finance, depending on the capital requirements of the Company. If
the issue of Ordinary Shares to the Investor brings their shareholding above
29.9% and require them to make a mandatory offer for the Company under the
Takeover Code, the ratio of Ordinary Shares to convertible loan notes to be
subscribed for would be adjusted to ensure this does not occur.
On 20 March 2025, the Company announced that it had secured an additional
£462,474 (US$600,000) through the issue of convertible loan notes,
convertible into ordinary shares in the Company at £0.0145 per share and
accruing interest of 5% per annum. The loan notes have a redemption date
twelve months from the date of issue.
On 27 March 2025, the Company announced that it had converted the balance of
the outstanding loan notes of £237,483 into 20,459,728 new ordinary shares of
£0.01 each and the remaining 1,129,592 gifted shares at a conversion price of
1.1p per share.
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