REG - Europa Metals Ltd - Final Results for the Year Ended 30 June 2022

Europa MetalsAnnouncement

01/11/2022 10:45

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RNS Number : 9068E  Europa Metals Ltd  01 November 2022

1 November 2022

Europa Metals Ltd

("Europa Metals", the "Company" or the "Group") (AIM, AltX: EUZ)

Final Results for the Year Ended 30 June 2022

Europa Metals, the European focused lead, zinc and silver developer, is
pleased to announce its final results for the year ended 30 June 2022.

A pdf copy of the full Annual Report and Accounts is available at the
following
link: http://www.rns-pdf.londonstockexchange.com/rns/9068E_1-2022-11-1.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/9068E_1-2022-11-1.pdf) and
will shortly be posted to shareholders who have requested hardcopies.

 For further information on the Company, please visit www.europametals.com
or contact:

Europa Metals Ltd

Dan Smith, Non-Executive Director and Company Secretary (Australia)

T: +61 417 978 955

Myles Campion, Executive Chairman and acting CEO (UK)

T: +44 (0)20 3289 9923

 

Strand Hanson Limited (Nominated Adviser)

Rory Murphy/Matthew Chandler

T: +44 (0)20 7409 3494

 

WH Ireland Limited (Broker)

Harry Ansell/Dan Bristowe/Katy Mitchell/Sarah Mather

T: +44 (0)20 7 220 1666

 

Questco Corporate Advisory Proprietary Limited (JSE Sponsor)

Sharon Owens

T: +27 (11) 011 9212

 

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulation
(EU) No. 596/2014 as it forms part of United Kingdom domestic law by virtue of
the European Union (Withdrawal) Act 2018, as amended.

 

Key Extracts from the Company's audited Report and Accounts are set out below:

Chairman and Interim CEO's statement

During the financial year ended 30 June 2022 and subsequently, Europa Metals
Ltd ("Europa Metals" or the "Company") has conducted additional highly
successful drilling campaigns and metallurgy work, with the results from our
2021 infill drill campaign facilitating an update to the independent Indicated
resource estimate for our wholly owned Toral Project, effective as of 14
September 2021, to approximately 5.9 Mt @ 7.1% ZnEq (including Pb credits)
within a total resource of approximately 20 Mt @ 6.3% ZnEq (including Pb
credits). This represented a substantial, approximate 55%, increase in the
indicated resource component and the updated resource estimate can be utilised
in calculations for feasibility studies and to support future mine planning.

The 2021 drill campaign targeted the upper more siliceous levels of the
resource at Toral, which exhibits a lower grade and thinner horizon than the
lower carbonate facies. The campaign yielded some tremendous results with hole
TOD-029 intersecting 20.45m @ 2.68% ZnEq(Pb+Ag) and hole TOD-034 intersecting
14.85m @ 8.36% ZnEq(Pb+Ag).

The campaign also successfully obtained a bulk sample from some of the
daughter holes from holes TOD-029 and TOD-034 which were submitted to Wardell
Armstrong International Limited ("WAI") for further metallurgical evaluation.
As part of this testwork, we also engaged TOMRA GmbH in Germany to complete a
programme of X-Ray transmission ("XRT") ore sorting work. Previous programmes
had yielded positive results from such siliceous material illustrating the
ability for the grade of this zone to potentially be upgraded.

The results from the ore sorting testwork were most reassuring, with the bulk
siliceous sample showing an  approximate 43% original mass rejection of waste
and >94% recovery of metals. Carbonate sampling also returned positive
results, improving on previous testwork with high 90% metal recoveries. This
work serves to continue to support the thesis of utilising ore sorting as a
pathway for leveraging the resource and the results will assist our planned
future engineering studies.  Following the year end, the Company announced
further highly encouraging metallurgical testwork results for Toral, including
locked cycle flotation testwork, in respect of sample material from both the
upper siliceous zone and the lower carbonate zone.

During the first half of 2022, the Company completed a short geotechnical
drill programme involving 5 shallow holes for approximately 79m in order to
inform ground support for potential future plant construction. In early May
2022, we subsequently commenced our 2022 resource drilling campaign which is
ongoing.  The objective of this latest campaign is to seek to extend the
pre-existing indicated resource estimate at depth towards the east of the
current zone and thereby link up a known area of encouraging data. If
successful, it should enable us to increase the resource tonnage and enhance
the previously envisaged mining plan. The campaign is also feeding in to our
previously announced R&D collaboration project with the University of
Salamanca supported by Spain's Centre for the Development of Industrial
Technology (CDTI), which is scheduled to be completed later this year.

In summary, the Europa Metals team has continued to advance Toral on a
technical/engineering level and move the project environmentally and socially
towards a Mining Licence Application (MLA) in a cost-effective manner. Over
the coming period, the Board will continue with its endeavours to establish a
clear pathway forward for Toral as we continue to believe in the clear
potential for the profitable future development of Toral in a stable and
secure first world jurisdiction.  In this regard, we were pleased to recently
announce a letter of intent in respect of a proposed US$6m farm-in arrangement
with Denarius Metals Corp. (TSXV: DSLV; OTCQB: DNRSF) ("Denarius"), involving
a two stage option and joint venture, pursuant to which it will be afforded
the right to acquire up to an 80% ownership interest in Toral.  This proposed
transaction remains subject, inter alia, to confirmatory due diligence by
Denarius, the finalisation and entry into of definitive documentation and all
requisite shareholder and regulatory approvals as appropriate, and there can
be no guarantee that the transaction will be completed.  This proposed
investment by Denarius represents a significant step forward with respect to
the advancement of Toral, but also our ambition to secure potential further
concessions in the surrounding Northern Spain region

In addition, we have continued to persue our stated business development
strategy and identify promising complimentary opportunities for portfolio
expansion. As at the end of the reporting period, the management team had
reviewed over 18 projects, with four being discussed and evaluated at Board
level, and we intend to continue such activity and to identify, investigate
and assess additional opportunities of potential interest. Further updates
will be provided as and when appropriate.

Myles Campion

Executive Chairman and Interim-CEO

31 October 2022

Consolidated Statement of Profit and Loss and Other Comprehensive Income

For the year ended 30 June 2022

                                                                                 2022             2021
                                                                                 $                $

 Revenue                                                                         -                -
 Other income                                                                    168,268          147,537
 Administration expenses                                                         (1,327,747)      (1,357,427)
 Exploration expenditure                                                         (1,224,860)      (2,044,095)
 Foreign exchange gain/(loss)                                                    (78,730)         (4,679)
 Loss before taxation                                                            (2,463,069)      (3,258,664)
 Income tax benefit / (expense)                                                  -                -
                                                                                 (2,463,069)      (3,258,664)

 Loss after income tax for the year from continuing operations
 Net loss for the year                                                           (2,463,069)      (3,258,664)

 Other comprehensive income

 Items that may be reclassified subsequently to profit or loss
 Net exchange (loss)/gain on translation of foreign operation                    (39,490)         (383,469)
 Other comprehensive income for the year, net of tax                             (39,490)         (383,469)
 Total comprehensive loss for the year                                           (2,502,559)      (3,642,133)

 Net loss for the year attributable to:
 Equity holders of the Parent                                                    (2,502,559)      (3,642,133)
                                                                                 (2,502,599)      (3,642,133)
 Total comprehensive loss for the year attributable to:
 Equity holders of the Parent                                                    (2,502,599)      (3,642,133)
                                                                                 (2,502,599)      (3,642,133)
 Loss per share                                                                  Cents per share  Cents per share
                                                                                 (3.57)           (7.03)

 Basic loss for the year attributable to ordinary equity holders of the Parent
 Diluted loss for the year attributable to ordinary equity holders of the        (3.57)           (7.03)
 Parent

The above Consolidated Statement of Profit or Loss and Other Comprehensive
Income should be read in conjunction with the accompanying notes in the full
Annual Report and Accounts.

Consolidated Statement of Financial Position

As at 30 June 2022

                                      2022          2021
                                      $             $
 Assets
 Current assets
 Cash and short term deposits         1,650,056     1,180,768
 Trade and other receivables          85,420        84,720
 Total current assets                 1,735,476     1,265,488

 Non-current assets
 Plant and equipment                  46,877        66,718
 Other receivables                    63,018        190,523
 Right of use assets                  42,292        29,277
 Capitalised exploration expenditure  1,229,196     1,276,964
 Total non-current assets             1,381,383     1,563,482

 Total assets                         3,116,859     2,828,970

 Liabilities and equity
 Current liabilities
 Trade and other payables             139,119       261,886
 Lease liability                      22,796        16,505
 Unearned income                      20,937        -
 Total current liabilities            182,852       278,391

 Non-current liabilities
 Lease liability                      12,507        -
 Borrowings                           186,925       121,727
 Total non-current liabilities        199,432       121,727

 Total liabilities                    382,284       400,118

 Net assets                           2,734,575     2,428,852

 Equity
 Contributed equity                   48,227,649    45,695,303
 Accumulated losses                   (48,843,673)  (46,380,604)
 Reserves                             3,350,599     3,114,153
 Total equity                         2,734,575     2,428,852

The above Consolidated Statement of Financial Position is to be read in
conjunction with the accompanying notes in the full Annual Report and
Accounts.

Consolidated Statement of Cash Flows

For the year ended 30 June 2022

                                                            2022         2021
                                                            $            $
 Cash flows used in operating activities
 Exploration and evaluation expenditure                     (1,115,564)  (1,959,132)
 Payments to suppliers and employees                        (1,083,549)  (1,135,162)
 Net cash flows used in operating activities                (2,199,113)  (3,094,294)

 Cash flows used in investing activities
 Payments for plant and equipment                           (768)        (28,056)
 Net cash flows used in investing activities                (768)        (28,056)

 Cash flows from financing activities
 Lease principal repayments                                 (34,783)     (25,879)
 Proceeds from issue of shares                              2,760,272    3,633,082
 Transaction costs on issue of shares                       (138,369)    (253,101)
 Proceeds from borrowings                                   250,045      258,513
 Net cash flows from financing activities                   2,837,165    3,612,615

 Net increase/(decrease) in cash and cash equivalents held  637,284      490,265
 Net foreign exchange difference                            (167,996)    (10,139)
 Cash and cash equivalents at 1 July                        1,180,768    700,642
 Cash and cash equivalents at 30 June                       1,650,056    1,180,768

The above Consolidated Statement of Cash Flows should be read in conjunction
with the accompanying notes in the full Annual Report and Accounts which can
be accessed via the following link:

http://www.rns-pdf.londonstockexchange.com/rns/9068E_1-2022-11-1.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/9068E_1-2022-11-1.pdf)

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