East Star Resources - Half-year Report
29/09/2025 07:00
RNS Number : 0743B
East Star Resources PLC
29 September 2025
29 September 2025
East Star Resources Plc
("East Star" or the "Company")
Half Year Report for the Six Months Ended 30 June 2025
East Star Resources Plc (LSE:EST), which is exploring for copper and gold in Kazakhstan, is pleased to present its half year report for the six-month period ended 30 June 2025.
Highlights
· Announced results of late 2024 drilling at Verkhuba with all three holes intersecting new ore-grade mineralisation outside the current resource envelope, supporting potential to expand the Mineral Resource and reduce future strip ratio of open pit-development
· Digitisation of historical Rulikha drill data highlighted thick, high-grade copper and zinc intersections
· IP survey northeast of Rulikha defined large chargeable anomalies
· IP survey at Talovskoye outlined a near-surface anomaly over the historic mine and a larger, deeper chargeability anomaly to the west
· Commenced drilling in June across Rulikha, Talovskoye and Verkhuba, completing 2,302 metres over nine holes (assays pending)
· At the Snowy licence, exploration refined a major gold-in-soil anomaly and confirmed a significant epithermal gold target, positioning the area as a promising dual copper-gold play with company-transforming potential
· Across Karaganda, East Star field teams visited more than 20 targets, prospective for copper/gold porphyry and epithermal gold deposits, derived from our participation in the BHP Xplor programme in 2024. Several applications for new licences have been lodged
· Raised £0.6 million through an oversubscribed WRAP Retail Offer and Subscription, following strong demand from investors including Board participation
Sandy Barblett, Non-Executive Chairman, commented:
"With copper supply deficits forecast to deepen in the medium term, gold trading at record highs, and Kazakhstan offering one of the world's most prospective but underexplored jurisdictions, we believe East Star is exceptionally well placed to deliver returns through discovery and resource development."
East Star Resources Plc
Alex Walker, Chief Executive Officer
Tel: +44 (0)20 7390 0234 (via Vigo Consulting)
SI Capital (Corporate Broker)
Nick Emerson
Tel: +44 (0)1483 413 500
Vigo Consulting (Investor Relations)
Ben Simons / Peter Jacob / Anna Stacey
Tel: +44 (0)20 7390 0234
About East Star Resources Plc
East Star Resources is focused on the discovery and development of copper and gold in Kazakhstan. East Star's management are based permanently on the ground, supported by local expertise. The Company is pursuing multiple exploration strategies:
· Volcanogenic massive sulphide (VMS) exploration, which to date includes a deposit with a maiden JORC MRE of 20.3Mt @ 1.16% copper, 1.54% zinc and 0.27% lead, in an infrastructure-rich region, amenable to a low capex development
· Copper porphyry and epithermal gold exploration, with multiple opportunities for Tier 1 deposits, initially supported by an initial US$500k grant from BHP Xplor in 2024
Visit our website:
www.eaststarplc.com
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LinkedIn: https://www.linkedin.com/company/east-star-resources/
X: https://x.com/EastStar_PLC
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The person who arranged for the release of this announcement was Alex Walker, CEO of the Company.
This announcement contains inside information for the purposes of Article 7 of Regulation 2014/596/EU which is part of domestic UK law pursuant to the Market Abuse (Amendment) (EU Exit) Regulations (SI 2019/310) ("UK MAR"). Upon the publication of this announcement, this inside information (as defined in UK MAR) is now considered to be in the public domain.
CHAIRMAN'S STATEMENT
Introduction
I am pleased to present East Star's half-year report for the six months ended 30 June 2025 (the "Period").
During the Period, East Star continued to advance its multi-strand exploration strategy to discover deposits of copper and gold in different geological settings in Kazakhstan. Copper remains at the centre of our strategy, as the world's transition to electrification continues to drive demand growth against constrained supply. With multiple exploration strategies targeting different styles of copper and gold mineralisation, we believe East Star is uniquely positioned, with boots on the ground and a well-established exploration platform, to contribute meaningful new discoveries in a country that is becoming increasingly attractive to the global mining industry.
Review of Operations
VMS Copper - Verkhuba and New Targets
At the Verkhuba Copper Deposit, drilling conducted in late 2024 returned very encouraging results. All drill holes intersected ore-grade mineralisation outside the current resource envelope indicating the potential to add tonnes to the existing resource while lowering the strip ratio of a future open-pit development. Assays from 238 core samples confirmed this interpretation, with multiple new ore-grade intervals reported. This progress strengthens Verkhuba's standing as a substantial copper deposit with further growth potential, close to processing infrastructure with excess capacity.
Exploration across our wider Rudny Altai belt licences also intensified. At Rulikha, historical drill data digitisation revealed outstanding polymetallic intersections, including thick, high-grade copper and zinc intervals proximal to strong IP and EM anomalies. Follow-up IP surveys have delineated large, highly chargeable anomalies immediately north of the known Rulikha deposit. Similarly, at Talovskoye, IP survey results identified both near-surface and deeper chargeability anomalies with potential for significant mineralisation. Preparations culminated in June, with the mobilisation of a drill rig to the East Region to begin a programme that has run for approximately three months, encompassing Rulikha, Talovskoye and Verkhuba. In total, East Star drilled 2,302 metres across nine holes. Drilling has now been completed with five of the holes logged, cut, sampled and sent to the ALS laboratory in Karaganda, Kazakhstan, for assay. The remaining four holes will be sent over in the coming weeks, with assay results expected through Q4 2025.
Copper Porphyry and Epithermal Gold
Further field work was done at the Snowy epithermal gold target, including site visits and sampling by Australian specialists in epithermal gold deposits. The prospect continues to show promise for a discovery with additional exploration programmes being planned for execution in Q4 2025.
East Star has also had field teams out in the greater Karaganda region, visiting more than 20 targets, prospective for copper/gold porphyry and epithermal gold deposits, derived from participation in the BHP Xplor programme in 2024. Several applications for new licences have been lodged as a result of this work.
Financing
In June, the Company completed a successful fundraise through a combination of subscription and retail participation via the WRAP platform. Strong investor demand resulted in an oversubscribed round, raising more than £0.6 million in aggregate. This funding supported the drilling programme in the East Region. The Board was pleased to note the participation again of Directors in this financing, further aligning interests with shareholders.
Key Financial Indicators
· Cash and cash equivalents at year-end were £737,000 (H1 2024: £411,000)
· Loss before taxation for the year was £756,000 (H1 2024: £9,000 profit)
· The Group held net assets at Period-end of £3,245,000 (31 December 2024: £3,155,000)
· The Group held total assets at Period-end of £3,328,000 (31 December 2024: £3,271,000)
Outlook
The first half of 2025 has been characterised by technical progress across East Star's VMS and porphyry/epithermal exploration strategies, culminating in the resumption of drilling in the East Region to test the Rulikha and Talovskoye geophysical anomalies, adjacent to historical deposits, and add tonnes to the already-sizeable Verkhuba Copper Deposit. These represent high-impact exploration opportunities with the potential to deliver new discoveries and resource expansion in a region where infrastructure and skilled mining labour are already in place.
Looking ahead, our focus for the second half of the year will be on delivering results from these drill programmes, updating our resource and exploration models and planning the 2026 drilling, while continuing to advance our porphyry and epithermal gold strategy.
With copper supply deficits forecast to deepen, gold trading at record highs, and Kazakhstan offering one of the world's most prospective but underexplored jurisdictions, we believe East Star is exceptionally well placed to deliver returns through discovery and resource development.
I would like to thank our team in Kazakhstan for their dedication and hard work, as well as our shareholders for their ongoing support. We look forward to an exciting and results-driven second half of the year.
Sandy Barblett
Non-Executive Chairman
26 September 2025
EAST STAR RESOURCES PLC - CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE 6 MONTH PERIOD ENDING 30 JUNE 2025
| Unaudited Period ending 30 June 2025 | Unaudited Period ending 30 June 2024 | ||
| Note | £'000 | £'000 | |
| Continuing Operations | |||
| Administrative expenses | (291) | (232) | |
| Share based payments | (30) | (22) | |
| Foreign exchange gain / (loss) | (435) | (131) | |
| Other income | 5 | - | 394 |
| Operating profit /(loss) | (756) | 9 | |
| Profit / (loss) before taxation | (756) | 9 | |
| Taxation | - | - | |
| Profit / (loss) for the period from continuing operations | (756) | 9 | |
| Other comprehensive income | 213 | 21 | |
| Total comprehensive profit/(loss) for the period | (543) | 30 | |
| Basic & dilutive earnings per share - (£ pence) | 6 | (0.19) | 0.004 |
| Unaudited | Unaudited | Audited | ||
| As At 30 June 2025 | As At 30 June 2024 | As At 31 December 2024 | ||
| Note | £'000 | £'000 | £'000 | |
| NON-CURRENT ASSETS | ||||
| Exploration assets | 7 | 2,503 | 2,431 | 2,448 |
| Property, plant and equipment | 29 | 14 | 35 | |
| TOTAL NON-CURRENT ASSETS | 2,532 | 2,445 | 2,483 | |
| CURRENT ASSETS | ||||
| Cash and cash equivalents | 737 | 411 | 678 | |
| Trade and other receivables | 59 | 104 | 110 | |
| TOTAL CURRENT ASSETS | 796 | 515 | 787 | |
| TOTAL ASSETS | 3,328 | 2,960 | 3,271 | |
| CURRENT LIABILITIES | ||||
| Trade and other payables | 83 | 69 | 116 | |
| TOTAL CURRENT LIABILITIES | 83 | 69 | 116 | |
| TOTAL LIABILITIES | 83 | 69 | 116 | |
| NET ASSETS | 3,245 | 2,892 | 3,155 | |
| EQUITY | ||||
| Share capital | 9 | 4,454 | 2,196 | 3,975 |
| Share premium | 9 | 9,302 | 6,069 | 9,178 |
| Share based payment reserve | 10 | 384 | 329 | 354 |
| Share capital to be issued | - | 3,750 | - | |
| Foreign exchange reserve | 477 | 52 | 264 | |
| Reverse acquisition reserve | (4,795) | (4,795) | (4,795) | |
| Retained earnings | (6,577) | (4,710) | (5,821) | |
| Non-controlling interest | (0.10) | (0.03) | (0.20) | |
| TOTAL EQUITY | 3,245 | 2,892 | 3,155 |
| Share capital | Share Premium | SBP Reserve | Foreign Exchange Reserve | Reverse acquisition reserve | Share Capital to issue | Retained earnings | Total equity | |
| £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | |
| Balance at 31 December 2023 | 2,187 | 6,052 | 307 | 31 | (4,795) | 3,750 | (4,719) | 2,813 |
| Loss for period | - | - | - | - | - | - | 9 | 9 |
| Other comprehensive income | - | - | - | 21 | - | - | - | 21 |
| Total comprehensive loss for period | - | - | - | 21 | - | - | 9 | 30 |
| Transactions with owners in own capacity | ||||||||
| Ordinary shares issued in the period | 9 | 17 | - | - | - | - | - | 26 |
| Share based payments | - | - | 22 | - | - | - | - | 22 |
| Transactions with owners in own capacity | 9 | 17 | 22 | - | - | - | - | 48 |
| Balance at 30 June 2024 | 2,196 | 6,069 | 329 | 52 | (4,795) | 3,750 | (4,710) | 2,892 |
| Loss for period | - | - | - | - | - | - | (1,111) | (1,111) |
| Other comprehensive income | - | - | - | 212 | - | - | - | 212 |
| Total comprehensive loss for period | - | - | - | 212 | - | - | (1,111) | (899) |
| Transactions with owners in own capacity | ||||||||
| Ordinary shares issued in the period | 1,779 | 3,161 | - | - | - | (3,750) | - | 1,190 |
| Share Issue Costs | - | (52) | - | - | - | - | - | (52) |
| Share based payments | - | - | 25 | - | - | - | - | 25 |
| Transactions with owners in own capacity | 1,779 | 3,109 | 25 | - | - | (3,750) | - | 1,163 |
| Balance at 31 December 2024 | 3,975 | 9,178 | 354 | 264 | (4,795) | - | (5,821) | 3,155 |
| Loss for period | - | - | - | - | - | - | (756) | (756) |
| Other comprehensive income | - | - | - | 213 | - | - | - | 213 |
| Total comprehensive loss for period | - | - | - | 213 | - | - | (756) | (543) |
| Transactions with owners in own capacity | ||||||||
| Ordinary shares issued in the period | 479 | 124 | - | - | - | - | - | 603 |
| Share based payments | - | - | 30 | - | - | - | - | 30 |
| Transactions with owners in own capacity | 479 | 124 | 30 | - | - | - | - | 633 |
| Balance at 30 June 2025 | 4,454 | 9,302 | 384 | 477 | (4,795) | - | (6,577) | 3,245 |
| Unaudited | Unaudited | |
| Period ended 30 June 2025 | Period ended 30 June 2024 | |
| £'000 | £'000 | |
| Cash flow from operating activities | ||
| Profit / (loss) before taxation for the period | (756) | 9 |
| Adjustments for: | ||
| Depreciation | 4 | 5 |
| Share based payments | 30 | 22 |
| Foreign exchange loss | 338 | 36 |
| Changes in working capital: | ||
| Decrease in trade and other receivables | 35 | 14 |
| (Decrease) in trade and other payables | (31) | (38) |
| Net cash outflow from operating activities | (380) | 48 |
| Cash flows from investing activities | ||
| Investment in fixed assets | - | (2) |
| Spend on exploration assets | (246) | (300) |
| Net cash flow from investing activities | (246) | (302) |
| Cash flows from financing activities | ||
| Proceeds from issue of shares | 622 | - |
| Proceeds from exercise of warrants | - | 26 |
| Share issue costs | (19) | - |
| Net cash flow from financing activities | 603 | 26 |
| Net (decrease) in cash and cash equivalents | (23) | (228) |
| Cash and cash equivalents at beginning of the period | 678 | 635 |
| Foreign exchange impact on cash | 82 | 4 |
| Cash and cash equivalents at end of the period | 737 | 411 |
| Standard | Amendment Focus | References |
| IFRS 1 - First-time Adoption of IFRS | Clarifies hedge accounting aspects for consistency with IFRS 9; improves understandability for first-time adopters on hedge designations and reliefs. | IFRS 1.B5, B6 |
| IFRS 7 - Financial Instruments: Disclosures | Updates obsolete references; aligns terminology with IFRS 13 Fair Value Measurement. | IFRS 7.44NN, B38 |
| IFRS 7 - Implementation Guidance | Clarifies guidance does not cover every disclosure requirement; updates wording for consistency with IFRS 7, IFRS 9, IFRS 13. | IG1, IG14, IG20B |
| IFRS 9 - Financial Instruments | Clarifies lease liability derecognition under IFRS 9 must be recognised in P&L (not retrospectively); enhances consistency with IFRS 15 for initial measurement of receivables. | IFRS 9.2.1(b)(ii), 5.1.3, Appendix A |
| IFRS 10 - Consolidated Financial Statements | Clarifies use of "de facto agent" concept; stresses judgement required to assess whether other parties act on behalf of the investor. | IFRS 10.B7 |
| United Kingdom | Kazakhstan | Total | |||
| £'000 | £'000 | £'000 | |||
| Administrative expenses | (179) | (112) | (291) | ||
| Share based payments | (30) | - | (30) | ||
| Foreign exchange gain / (loss) | - | (435) | (435) | ||
| Operating loss from continued operations per reportable segment | (209) | (547) | (756) | ||
| Reportable segment assets | 686 | 2,642 | 3,328 | ||
| Reportable segment liabilities | (43) | (40) | (83) | ||
| Total | 643 | 2,554 | 3,245 |
| Period ended 30 June 2025 £'000 | Period ended 30 June 2024 £'000 | ||
| BHP Xplor program | - | 394 | |
| - | 394 |
| Unaudited | Unaudited | Audited | |
| Period ended 30 June 2025 | Period ended 30 June 2024 | Year ended 31 December 2024 | |
| Net profit / (loss) for the period attributable to ordinary equity holders for continuing operations (£'000) | (756) | 9 | (1,102) |
| Weighted average number of ordinary shares in issue | 402,036,844 | 219,517,164 | 264,288,870 |
| Basic and diluted earnings per share for continuing operations (pence) | (0.19) | 0.004 | (0.42) |
| £'000 | |
| Opening balance - 30 June 2024 | 2,431 |
| Exploration expenditure across licenses | 278 |
| FX impact on additions | (261) |
| As at 31 December 2024 | 2,448 |
| Opening balance - 1 January 2025 | 2,448 |
| Exploration expenditure across licenses | 246 |
| FX impact on additions | (191) |
| As at 30 June 2025 | 2,503 |
| Name | Business Activity | Country of Incorporation | Registered Address | Percentage Holding |
| Discovery Ventures Kazakhstan Limited | Mineral exploration | Kazakhstan | Astana City, Yesil district, Sauran st., building 3/1, 717, Z05K6G, Kazakhstan | 100% |
| Chu Lli Resources ltd* | Mineral exploration | Kazakhstan | Astana City, Yesil district, Sauran st., building 3/1, 717, Z05K6G , Kazakhstan | 80% |
| Rudny Resources ltd* | Mineral exploration | Kazakhstan | Astana City, Yesil district, Sauran st., building 3/1, 717, Z05K6G, Kazakhstan | 80% |
| Copperland Resources * | Mineral exploration | Kazakhstan | Astana City, Yesil district, Sauran st., building 3/1, 717, Z05K6G, Kazakhstan | 100% |
| MVLKAZ Holdings Limited | Holding company | England and Wales | Eccleston Yards, 25 Eccleston Place, London, SW1W 9NF | 100% |
| MVLKAZ Limited ** | Mineral exploration | Kazakhstan | Astana City, Yesil district, Sauran st., building 3/1, 717, Z05K6G, Kazakhstan | 100% |
| Ordinary Shares | Share Capital | Share Premium | Total | |
| # | £'000 | £'000 | £'000 | |
| As at 30 June 2024 | 219,517,164 | 2,196 | 6,069 | 8,265 |
| Shares issue upon exercise of warrants | 333,333 | 3 | 7 | 10 |
| Issue of ordinary shares | 102,665,422 | 1,026 | 102 | 1,128 |
| Issue of performance shares | 75,000,000 | 750 | 3,000 | 3,750 |
| As at 31 December 2024 | 397,515,919 | 3,975 | 9,178 | 13,153 |
| Issue of ordinary shares1 | 47,868,616 | 479 | 124 | 603 |
| As at 30 June 2025 | 445,384,535 | 4,454 | 9,302 | 13,756 |
| £'000 | |
| Opening balance - 30 June 2024 | 329 |
| Employee options - charge release for the period | 25 |
| As at 31 December 2024 | 354 |
| Employee options - charge released for the period | 30 |
| As at 30 June 2025 | 384 |
| As at 30 June 2025 | |||||
| Exercisable Warrants | Outstanding Warrants | ||||
| Weighted average exercise price | Number of options | Weighted average exercise price | Number of options | ||
| Brought forward at 1 January 2025 | 3.33p | 44,678,258 | 3.33p | 44,678,258 | |
| Lapsed in period | 5p | (2,146,000) | 5p | (2,146,000) | |
| Exercisable at 30 June 2025 | 3.21p | 42,532,258 | 3.21p | 42,532,258 | |
| As at 30 June 2025 | |||||
| Exercisable Options | Outstanding Options | ||||
| Weighted average exercise price | Number of options | Weighted average exercise price | Number of options | ||
| Brought forward at 1 January 2025 | 4.7p | 5,966,163 | 4.8p | 14,934,500 | |
| Vested in period | 4.3p | 1,062,792 | - | - | |
| Granted | - | - | 1.5p | 8,458,688 | |
| Exercisable at 30 June 2025 | 3.8p | 7,074,245 | 3.8p | 23,574,347 | |
| Director | Kazakhstan (£) | UK (£) | Total (£) |
| Alexander Walker | 63,132 | 6,000 | 69,132 |
| Christopher Van Wijk | 28,850 | 6,000 | 34,850 |
| Anthony Eastman | - | 12,000 | 12,000 |
| Alexander Barblett | - | 12,000 | 12,000 |
| Total | 91,982 | 36,000 | 127,982 |