REG - Europa Metals Ltd - Half-year Report
28/03/2024 07:30
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RNS Number : 6726I Europa Metals Ltd 28 March 2024
28 March 2024
Europa Metals Ltd
("Europa Metals", the "Company" or the "Group") (AIM, AltX: EUZ)
Results for the Half-Year Ended 31 December 2023
Europa Metals, the European focused lead, zinc and silver developer, is
pleased to announce its unaudited results for the half-year ended 31 December
2023 (the "Half-Year Financial Report").
Please see below extracts from the Half-Year Financial Report, being the:
- Chairman and Interim-CEO's Review
- Review and results of operations
- Consolidated Statement of Profit or Loss and Other Comprehensive
Income
- Consolidated Statement of Financial Position
- Consolidated Statement of Changes in Equity
- Consolidated Statement of Cash Flows
A copy of the full Half-Year Financial Report is available on the Company's
website at www.europametals.com (http://www.europametals.com) .
For further information on the Company, please visit www.europametals.com
(http://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
Beaumont Cornish (Nominated Adviser/Broker)
James Biddle
T: +44 (0)20 7628 3396
Questco Corporate Advisory Proprietary Limited (JSE Sponsor)
Danielle Christodoulou
T: +27 (11) 011 9216
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 unaudited Half-Year Financial Report are set
out below:
Review and results of operations
Europa Metals is a European focused lead, zinc and silver developer.
Operating Results
For the half-year from 1 July 2023 to 31 December 2023, the Group recorded a
net loss after tax of A$248,761 (1 July 2022 to 31 December 2022: net loss of
A$1,220,449).
The Toral Project is situated in northwest Spain in a world class mining
jurisdiction which provides the opportunity to create new mines within
well-established environmental and mining frameworks and with access to first
class power and transport infrastructure. Toral represents a limestone hosted,
structurally controlled deposit with the Pb, Zn, Ag mineralisation situated
within the limestone close to the boundary between footwall slates and hanging
wall limestones and dolomites. The mineralisation occurs as semi-massive vein,
breccia and carbonate replacement styles of mineralisation.
The Toral deposit currently has a JORC (2012) compliant indicated mineral
resource estimate of approximately 7Mt @ 8.1% Zn Equivalent (including Pb
credits), 5% Zn, 3.7% Pb and 29g/t Ag, containing approximately 349,000 tonnes
of zinc, 260,000 tonnes of lead and 6.6 million ounces of silver. This is
contained within a total mineral resource of 20Mt @ 6.8% Zn Equivalent
(including Pb credits), 4.4% Zn, 2.8% Pb and 23 g/t Ag.
On November 23 2022, Europa Metals Ltd entered into a definitive option
agreement (the "Toral Definitive Agreement") with Denarius Metals Corp.
("Denarius") pursuant to which Europa has granted two options to Denarius to
acquire up to an 80% ownership interest in Europa Metals Iberia S.L. ("EMI"),
a wholly-owned Spanish subsidiary of Europa which holds the Toral Zn-Pb-Ag
Project.
Pursuant to the Toral Definitive Agreement, Denarius has been granted a First
Option, exercisable until November 22, 2025 (subject to a 90-day extension in
certain circumstances), to subscribe for a 51% equity interest in EMI by:
(i) spending, as operator, a total of USD$4,000,000 on the
Toral Project over the three-year period,
(ii) completing a preliminary economic assessment, and
(iii) completing and submitting a mining license application in
respect of the Toral Project to the local mining
authority by July 31, 2023.
Mining Licence Application
Formal application for a mining licence has been completed in October 2023
over the Toral Pb, Zn & Ag project. All necessary studies have now been
completed and lodged with the relevant authorities and departments within the
Castille and Leon regional government.
Highlights:
· Submission to the "Junta of Castilla and Leon" completed.
· All necessary documentation covering the exploitation,
restoration and environmental impact study was submitted.
· The submission envisages a life of mine of 15 years, mining on
average 700,000t of ore per year from underground.
· Including pre-production and closure plans, Toral's 18 year
operations will create over 360 direct local employment opportunities and
approximately 1,400 indirect jobs in the region.
· This submission has been based on the deposit whose technical,
economic and environmental feasibility is in accordance with the laws and
regulations of the region of Castilla y Leon.
· Such project assessment will be formally reported on in the
expected preliminary economic assessment in accordance with the Canadian
Institute of Mining Metallurgy and Petroleum ("CIM") Definition Standards
incorporated by reference in National Instrument 43-101 expected to be
prepared in 2024.
Exploitation Plan
Due to the subvertical geometry of the Toral deposit and its combination of
depth and thickness, underground mining is considered to be the most
technically, economically, and environmentally viable development option.
Figure 1 General on surface facilities layout distribution
The basis for the development plan utilised the existing JORC resource from
November 2022; since the beginning of 2023 the Company's Spanish engineering
group, Mining Sense, has applied many factors to this Resource such as
commodity pricing, base load power costs, dilution factors and trade-off
studies with the objective of reviewing various development scenarios. Based
on the work carried out, it was determined that the extension, volume and ore
grades have been duly estimated to define a mineable deposit whose technical,
economic and environmental feasibility is supported by the documentation and
in accordance with the laws and regulations of the region of Castille y Leon.
Such project assessment will be formally reported on in the expected
preliminary economic assessment to national Instrument standards 43-101
expected to be published in 2024.
Drilling
On the 4(th) August 2023, Europa Metals was pleased to announce the latest
assay results from its ongoing validation and infill diamond drilling
programme, being conducted by Explomin Perforaciones UE S.L. ("Explomin"), at
the Company's 100% owned Toral Pb, Zn & Ag project ("Toral" or the "Toral
Project") in northwest Spain. This drilling programme forms part of the 2023
exploration campaign agreed between the Company and Denarius Metals Corp
(TSXV:DSLV; OTCQX: DNSRF) ("Denarius") pursuant to the definitive option
agreement dated 22 November 2022, further details of which are set out in the
Company's announcement of 23 November 2022.
In addition, detailed environmental studies are now nearing completion which
are required to finalise the formal submission of the Company's mining licence
application to the Mines Department of Castilla y León.
Highlights:
· Assays received in respect of seven drill holes at Toral each
reporting significant mineralisation
· Significant intersection from drillhole TOD-044 of 7.95m@4.46%
ZnEq(PbAg)*, including:
o 4.25m@6.17% ZnEq(PbAg)*; and
o 1.55m@11.40% ZnEq(PbAg)*
· Significant intersection from drillhole TOD-045 of 4.95m@22.71%
ZnEq(PbAg)*
· Significant intersection from drillhole TOD-046 of 1.50m@11.64%
ZnEq(PbAg)*, including:
o 1.00m@15.84% ZnEq(PbAg)*
· Two significant intersections from drillhole TOD-047 of
0.6m@18.34% ZnEq(PbAg)* and 2.4m@3.72% ZnEq(PbAg)*
· Significant intersections from drillhole TOD-048 of 4.7m@6.68%
ZnEq(PbAg)*, including:
o 1.65m@14.41% ZnEq(PbAg)*
· A further significant intersection from drillhole TOD-048 of
6.65m@8.12% ZnEq(PbAg)*, including:
o 3.80m@12.58% ZnEq(PbAg)*
· Significant intersection from drillhole TOD-049 of 5.00m@6.91%
ZnEq(PbAg)*, including:
o 1.25m@20.93% ZnEq(PbAg)*
· Significant intersections from drillhole TOD-050 of 3.90m@10.30%
ZnEq(PbAg)*, including:
o 1.45m@20.69% ZnEq(PbAg)*
· A further significant intersection from drillhole TOD-050 of
2.4m@4.98% ZnEq(PbAg)*
· Holes TOD-045 and TOD-046 have both been completed and
reliability of the assay results received re-confirmed:
o High values of silver were identified in one of the holes and in line with
the Company's standard operating procedures (SOP), we re-submitted the sample
for re-testing to confirm its veracity and also confirmed the accuracy of
results for control samples
· All holes to date have been successful in intersecting
mineralisation adjacent to an existing, previously reported, high grade
intersection within the project's Indicated Resource block
· Hole TOD-051 is currently nearing completion and comprises the
final drillhole for this campaign
· Detailed environmental work is nearing completion in connection
with the Company's forthcoming mining licence application ("MLA") for Toral.
Additional information
The current drilling campaign for a total of up to 7,000m, is focused on a
combination of confirmatory and infill drilling within the project's known
indicated resource area outlined to date, of approximately 7Mt @ 8.1% Zn
Equivalent (including Pb credits), 5% Zn, 3.7% Pb and 29g/t Ag.
Drilling results
The drilling parameters for the assay results reported for each hole are
presented in the table below:
HOLE_ID EASTING NORTHING ELEVATION (m) LENGTH (m) COOR_SYS
TOD-044 681197 4710037 531.65 509 ETRS89utm29
TOD-045 681412 4710025 542.29 610.3 ETRS89utm29
TOD-046 681684 4709858 660.80 866.5 ETRS89utm29
TOD-047 681686 4709856 660.88 460.6 ETRS89utm29
TOD-048 681408 4710024 542.29 529 ETRS89utm29
TOD-049 681685 4709857 660.80 763 ETRS89utm29
TOD-050 681916 4709571 634.10 701.3 ETRS89utm29
All holes were drilled to PQ-HQ-NQ diameter, with half of the core being sent
for independent analysis at ALS Laboratories. The assay results received are
set out in the table below:
Hole ID From To Interval (m) Zn_% Pb_% Ag_ppm Cu_% ZnEq(PbAg)%*
TOD-044 490.85 498.80 7.95 2.56 1.73 14.65 0.04 4.46
TOD-044 (including) 490.85 495.10 4.25 3.93 2.06 16.79 0.04 6.17
TOD-044 (including) 492.65 494.20 1.55 8.35 2.76 24.31 0.05 11.40
TOD-045 592.00 596.95 4.95 7.31 12.77 160.52 0.10 22.71
TOD-046 845.50 847.00 1.50 8.30 3.45 12.80 0.04 11.64
TOD-046 (including) 845.50 846.50 1.00 11.08 4.91 18.75 0.06 15.84
TOD-047 442.00 442.60 0.60 15.20 3.30 10.50 0.17 18.34
TOD-047 453.10 455.50 2.40 1.61 1.57 27.69 0.20 3.72
TOD-048 505.25 509.95 4.70 3.53 2.81 26.34 0.31 6.68
TOD-048 (including) 508.30 509.95 1.65 7.94 5.78 53.95 0.51 14.41
TOD-048 513.05 519.70 6.65 4.01 2.75 63.60 0.31 8.12
TOD-048 (including) 515.90 519.70 3.80 6.35 4.14 97.92 0.44 12.58
TOD-049 745.00 750.00 5.00 1.17 6.14 15.63 0.07 6.91
TOD-049 (including) 745.85 747.10 1.25 2.01 20.45 43.96 0.23 20.93
TOD-050 675.00 678.90 3.90 2.24 8.05 40.24 0.03 10.30
TOD-050 (including) 677.45 678.9 1.45 5.76 14.39 91.04 0.07 20.69
TOD-050 680.10 682.50 2.40 1.71 2.67 35.44 0.01 4.98
* - ZnEq(PbAg)% is the calculated Zn equivalent incorporating lead and silver
credits; (ZnEq(PbAg)% = Zn + Pb*0.926 + Ag*0.019). Zn equivalent calculations
were based on 3-year trailing average price statistics obtained from the
London Metal Exchange and London Bullion Market Association giving an average
Zn price of US$2,680/t, Pb price of US$2,100/t and Ag price of US$16.2/oz.
Significant ZnEq intercepts were generated using a 1% ZnEq trigger value,
minimum width of 1m, maximum consecutive waste interval of 1m and minimum
average ZnEq grade of >1%.
Image 1: Hole positions
Drilling operations remain ongoing, in line with the Company's objective set
out above, and further assay results will be announced once processed and
received.
The Company had been awaiting re-assays and re-confirmation of the results for
several samples, sent to the laboratory over the past several months, prior to
releasing this announcement. In particular, one of the holes reported an
abnormally high silver value (hole TOD-045, average grade of 160.52 Ag g/t)
and as part of the Company's standard operating procedures (SOP) when we
receive abnormally high results for either zinc, lead or silver, we re-submit
the relevant sample for re-testing in order to confirm its veracity. We have
now confirmed this value.
In addition, as part of our SOP we regularly insert control samples into the
batches that are submitted to the laboratory, the results of which form part
of our statistical analysis to confirm the reliability and consistency of the
results received. We have now received confirmation of these results over
several holes and can confirm their accuracy.
Corporate
Issue of shares to directors
In December 2023, the Company issued 3,500,000 new Ordinary Shares to two
directors of the Company following the conversion of performance rights. The
relevant performance milestone conditions for the performance rights were
achieved during the course of the year. Refer to the RNS of 24 January 2023
for further details.
Change of Nomad and Broker
On 9 October 2023, the Company advised of the appointment of Beaumont Cornish
Limited as Nomad and Broker.
Shareholder Meetings
On 30 November 2023, the Company held its Annual General Meeting whereby all
resolutions were duly approved by shareholders by way of a poll.
Events subsequent to the reporting date
No matters or circumstances have arisen since the reporting date that may
significantly affect the operations of the Company, the results of those
operations, or the Company's state of affairs in future financial years.
Daniel Smith
Director
28 March 2024
Consolidated Statement of Profit or Loss and Other Comprehensive Income
for the half-year ended 31 December 2023
6 months to 6 months to
31 December 2023 31 December 2022
Note $ $
Revenue from continuing operations
Other Income 2 277,071 177,279
277,071 177,279
Exploration expenditure (9,315) (853,355)
Foreign exchange (loss)/gain (10,097) (7,553)
Other expenses 2 (506,420) (536,820)
Loss before income tax (248,761) (1,220,449)
Income tax (expense)/benefit - -
Net loss after income tax (248,761) (1,220,449)
Other comprehensive income
Items that may be reclassified subsequently to profit or loss:
Net exchange (loss)/gain on translation of foreign operation - 34,859
Other comprehensive (loss)/profit for the period, net of tax - 34,859
Total comprehensive loss for the period (248,761) (1,185,590)
Net (loss) for the period attributable to shareholders of the Company: (1,220,449)
(248,761)
(248,761) (1,220,449)
Total comprehensive (loss) for the period attributable to shareholders of the (248,761) (1,185,590)
Company:
(248,761) (1,185,590)
Cents per share Cents per share
Loss per share
- basic (loss) per share (0.26) (1.48)
- diluted (loss) per share
(0.26) (1.48)
The above Consolidated Statement of Profit or Loss and Other Comprehensive
Income should be read in conjunction with the accompanying notes in the full
Half-Year Financial Report.
Consolidated Statement of Financial Position as at 31 December 2023
31 December 30 June
2023 2023
Note $ $
Current Assets
Cash and short-term deposits 488,964 653,990
Trade and other receivables 3 13,481 23,179
Total Current Assets 502,445 677,169
Total Assets 502,445 677,169
Current Liabilities
Trade and other payables 112,451 118,902
Total Current Liabilities 112,451 118,902
Total Liabilities 112,451 118,902
NET ASSETS 389,994 558,267
Equity
Contributed equity 6 49,562,236 49,391,945
Accumulated losses (52,472,831) (52,224,070)
Reserves 3,300,589 3,390,392
TOTAL EQUITY 389,994 558,267
The above Consolidated Statement of Financial Position should be read in
conjunction with the accompanying notes in the full Half-Year Financial
Report.
Consolidated Statement of Changes in Equity for the half-year ended 31
December 2023
Employee
Issued Accumulated Share Option Foreign Exchange Total
Incentive
Capital Losses Reserve Reserve Reserve Equity
$ $ $ $ $ $
At 1 July 2022 48,227,649 (48,843,673) 567,997 2,720,044 62,558 2,734,575
(Loss) for the period - (1,220,449) - - - (1,220,449)
Other comprehensive income (net of tax) - - - - 34,859 34,859
Total comprehensive loss (net of tax) - (1,220,449) - - 34,859 (1,185,590)
Transaction with owners in their capacity as owners
Shares issued net of transaction costs 1,033,155 - - - - 1,033,155
Shares issued to management 55,351 - (76,420) - - (21,069)
Shares to be issued - - 62,702 - - 62,702
Options issued to directors and management - - - 16,355 - 16,355
At 31 December 2022 49,316,155 (50,064,122) 554,279 2,736,399 97,417 2,640,128
At 1 July 2023 49,391,945 (52,224,070) 595,010 2,795,382 - 558,267
(Loss) for the period - (248,761) - - - (248,761)
Other comprehensive income (net of tax) - - - - - -
Total comprehensive loss (net of tax) - (248,761) - - - (248,761)
Transaction with owners in their capacity as owners
Performance shares issued - - 66,859 - - 66,859
Conversion of performance rights 170,291 - (170,291) - - -
Options issued to directors and management - - - 13,629 - 13,629
At 31 December 2023 49,562,236 (52,472,831) 491,578 2,809,011 - 389,994
The above Consolidated Statement of Changes in Equity should be read in
conjunction with the accompanying notes in the full Half-Year Financial
Report.
Consolidated Statement of Cash Flows for the half-year ended 31 December 2023
6 months to 31 December 2023 6 months to 31 December 2022
$ $
Cash flows from operating activities
Receipts from associate 277,071 -
Payments to suppliers and employees (323,677) (399,487)
Payment for exploration and evaluation costs (107,254) (822,588)
Net cash flows used in operating activities (153,860) (1,222,075)
Cash flows from financing activities
Lease principal repayments - (16,601)
Proceeds from issue of shares - 1,033,155
Net cash flows from financing activities - 1,016,554
Net increase / (decrease) in cash and cash equivalents (153,860) (205,521)
Cash and cash equivalents at beginning of period 653,990 1,650,056
Effect of foreign exchange on cash and cash equivalents (11,166) 6,777
Cash and cash equivalents at end of the period 488,964 1,451,312
The above Consolidated Statement of Cash Flows should be read in conjunction
with the accompanying notes in the full Half-Year Financial Report.
- ENDS -
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