REG - First Tin PLC - Interim Report for the year ended 31 December 2023
28/03/2024 07:00
For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240328:nRSb5983Ia&default-theme=true
RNS Number : 5983I First Tin PLC 28 March 2024
28 March 2024
First Tin Plc
("First Tin" or "the Company")
Interim Report for the year ended 31 December 2023
First Tin PLC, a tin development company with advanced, low capex projects in
Germany and Australia, today announces its interim report for the year ended
31 December 2023.
Highlights
· Posted a comprehensive loss for the period of £2.82m (31
December 2022: £3.12m)
· Ended the period with a cash position of £4.66m (31 December
2022: £13.8m)
· Ended the period with a net asset value of £38.97m (31 December
2022: £41.78m)
· The interim results for the period reflect continued investment
by the Company in progressing its two flagship assets through permitting and
DFS studies.
· The fully funded DFS continues at pace at Taronga, Australia:
o Published an updated JORC compliant Mineral Resource Estimate ("MRE")
which increased the size of the Taronga resource by over 240% to 133 million
tonnes
o Mineral processing work confirmed feasibility for simple low strip ratio
open pit mining, with significant grade beneficiation at crush stage and a
simple cost-effective flowsheet.
o 10MW behind the grid solar farm plus gas generators selected as the most
environmentally friendly and cost-effective power solution.
o Exploration activity at nearby satellite prospects validated our thesis
that Taronga is part of a broader tin district, with the potential to develop
a hub and spoke system in the future.
· Continued to progress the Tellerhäuser project, Germany:
o Continued to expand the current JORC MRE by utilising the recently
uncovered historical Wismut drilling data alongside additional drilling
o Completed a model of the groundwater flow, showing that mining-induced
dewatering of low-laying groundwater horizons will not impact surface water
bodies
Bill Scotting, Chief Executive Officer, Commented:
"I am pleased to report my inaugural results as CEO of First Tin, and since
commencing my role at the beginning of 2024, I am glad to see the progress
made during the period under review. In 2023, we were able to execute key
workstreams, adding value to both our flagship assets in Australia and
Germany.
2024 is shaping up to be another busy year for the Company with the DFS at our
Taronga asset soon to be completed and the finalisation of the MRE update at
our Tellerhäuser asset in Q3 2024.
Our outlook for the tin market remains bullish, and we are already seeing
strong signs of tin price recovery. The demand for tin remains ever-present as
tin becomes increasingly recognised as crucial to the global energy transition
and digital revolution.
With both projects positioned strategically in the safe, compliant
jurisdictions of Australia and Germany, and Taronga leading the charge as one
of the largest tin development projects worldwide, First Tin remains committed
to making strong advancements towards our 2026 production target."
Investor Presentation Reminder
Bill Scotting, CEO, and Tony Truelove, Technical Director, will provide a live
presentation for investors via the Investor Meet Company platform at 10:00am
BST on the day of results.
Investors can sign up to Investor Meet Company for free and click "Add to
Meet" First Tin via:
https://www.investormeetcompany.com/first-tin-plc/register-investor
(https://www.investormeetcompany.com/first-tin-plc/register-investor)
Enquiries:
First Tin Via SEC Newgate below
Bill Scotting - Chief Executive Officer
Arlington Group Asset Management Limited (Financial Advisor and Joint Broker)
Simon Catt 020 7389 5016
WH Ireland Limited (Joint Broker)
Harry Ansell 020 7220 1670
SEC Newgate (Financial Communications)
Elisabeth Cowell / Molly Gretton FirstTin@secnewgate.co.uk
Notes to Editors
First Tin is an ethical, reliable, and sustainable tin production company led
by a team of renowned tin specialists. The Company is focused on becoming a
tin supplier in conflict-free, low political risk jurisdictions through the
rapid development of high value, low capex tin assets in Germany and
Australia, which have been de-risked significantly, with extensive work
undertaken to date.
Tin is a critical metal, vital in any plan to decarbonise and electrify the
world, yet Europe has very little supply. Rising demand, together with
shortages, is expected to lead tin to experience sustained deficit markets for
the foreseeable future.
First Tin's goal is to use best-in-class environmental standards to bring two
tin mines into production in three years, providing provenance of supply to
support the current global clean energy and technological revolutions.
CHAIRMAN'S STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
I am pleased to report that during the period under review, First Tin
continued to achieve significant milestones and advancements at both its tin
projects, particularly at the Taronga tin asset in Australia.
Tin spot prices fluctuated as the market navigated a period of weak demand,
challenging macroeconomic conditions and geopolitical tensions, with major tin
producers experiencing significant supply disruptions. As a result, tin prices
ranged from US$29,069/t (12 July 2023) to US$22,979/t (27 November 2023). Post
period end, the spot price has strengthened again and, with material deficits
still forecast to commence and continue from 2026, we remain hopeful that
higher future tin prices will emerge and be sustained.
The global transition to clean energy and the digital transformation remain
the key drivers for tin's growing demand. Tin is a vital technology metal as
it glues together the electronics found in consumer and industrial goods,
including electric vehicles, batteries, computers, communications devices,
solar panels and other renewable energy technologies.
Many companies are coming under increased scrutiny around Environmental,
Social, and Governance ("ESG") compliance with accompanying pressure to
decarbonise their supply chains, increasing the demand for ethical, reliable,
and sustainable sources of tin. First Tin's assets in Australia and Germany
are located in conflict-free, low political risk jurisdictions and it is
therefore well placed to provide a sustainable supply of tin to support the
clean energy and digital revolutions.
Therefore, we were pleased to see tin recognised by the Australian Government
as a Strategic Material in December 2023 as its role in the global transition
to net zero is fundamental. This move will place our Taronga project at the
forefront of Australia's transition to net-zero and advanced technological
developments.
During the period under review, the management team continued to focus on
advancing the assets through their Definitive Feasibility Studies ("DFS"),
environmental studies and permitting. At our Taronga asset, we published an
updated JORC compliant Mineral Resource Estimate ("MRE"), demonstrating the
true scale of our Taronga project. We also validated our thesis that Taronga
sits within a Tin District with excellent potential for satellite deposits.
The Company has subsequently taken steps to consolidate our land position and
has been granted, a large (276.6km2) Exploration Licence covering the majority
of the Tingha tin field, located approximately 50km from Taronga.
Most importantly for Taronga, post period end, the Company completed gravity
circuit testwork on a low grade bulk sample (0.11% Sn) and a variability core
sample (0.13% Sn). The results from this recent test significantly improved
the previous recoveries that were generated from a high grade bulk sample
(0.18% Sn.) This has been achieved through optimisation of the flowsheet by
our team and the ALS Laboratory in Tasmania and has successfully shown the
deposit has a recovery of over 70% through the gravity circuit, which confirms
the previous Newmont testwork.
At our Tellerhäuser asset in Saxony, Germany, we made progress during the
period in terms of permitting the project, receiving confirmation that the
mining permit will go through a fast-track process, following our application
in June. In relation to the ongoing DFS, our dedicated team have been focused
on expanding the current JORC MRE by utilising the recently uncovered
historical Wismut drilling data.
First Tin's commitment to robust ESG principles remains central to our Company
ethos. We are firmly dedicated to establishing a conflict-free tin source
through sustainable, ethical, and regulated mining practices. Post period end
we disclosed findings that demonstrated that, by crushing during daylight
hours only, a combination of gas engines for the base load and night-time
power usage supplemented by solar panels used for daytime augmentation
presents the most economically viable and eco-friendly power solution for
Taronga. These findings reinforce our pledge to reduce First Tin's
environmental impact and CO(2) emissions.
During the period, we announced the appointment of Bill Scotting as Chief
Executive Officer, who officially began his role post period end, in January
2024. Bill has over 35 years of industry experience and a proven track record
in the metals and mining sector and the Board is confident that under Bill's
leadership, First Tin is best placed to continue making strong operational
progress at both our flagship assets.
On behalf of the Board, I would like to thank Thomas Buenger for his
significant contribution to First Tin since its IPO in April 2022. We wish him
all the best for the future.
We were also pleased to welcome Ross Ainger to the Board as a Non-Executive
Director on 6 September 2023. Ross, who has been Company Secretary since March
2022, has extensive knowledge of the business and has already proven to be of
great value to the Board. Ross was also appointed Chairman of the ESG
Committee and a member of the Audit/Risk and Remuneration/Nominations
Committees.
The period ahead promises to be another busy one. We especially look forward
to the completion of the Taronga DFS, which will support offtake and project
financing discussions, complete the Environmental Impact Statement (EIS) and
continue the environmental permitting and mining approval process. At our
Tellerhäuser asset, we will focus on essential permitting work and the MRE
update.
First Tin remains poised to capitalise on the opportunities presented by the
technological revolutions supporting the global energy transition. Our
commitment to delivering ethical and sustainable tin production continues to
drive our objectives and position us for long-term success and I look forward
to keeping you updated on our progress.
I would like to thank our dedicated team, supportive shareholders, and
stakeholders for their continued trust and collaboration as we navigate
towards a sustainable and prosperous future for First Tin.
C Cannon Brookes
Chairman
CHIEF EXECUTIVE OFFICER'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
The period under review saw First Tin make significant strides in advancing
both its projects in Australia and Germany, laying a solid foundation for
sustained growth and success. Having joined First Tin just three months ago,
at the start of 2024, I am pleased to see the progress during the period under
review.
I feel privileged to have been selected by the First Tin Board to lead the
next stage of the Company's development and I am excited by the vision of the
Company and the quality of our assets. I would like to thank my predecessor,
Thomas Buenger, for his leadership since the IPO, putting in place the
building blocks to progress our assets along the paths of permitting and
preparation of the Definitive Feasibility Studies (DFS).
The structural shifts in the tin market, together with the increased
recognition of tin as a critical metal for the energy transition and the
digital revolution, present significant opportunities. Our projects,
strategically located in the safe, compliant jurisdictions of Australia and
Germany, ideally position us to capitalise on this opportunity. With Taronga
leading the charge as one of the largest tin development projects globally,
boasting a mineralogy conducive to easy, cost-effective mining and processing,
I am confident that we are poised for success.
Tin, a critical metal for the future
Tin is one of the oldest metals in use yet remains ever present in modern
life, integral to various technologies such as electronics, PCBs,
semiconductors and renewable energy systems. Recognised as pivotal in the
energy transition and digital revolution, tin is experiencing heightened
demand driven by advancements in electronic devices, robotics, 5G, and
artificial intelligence.
Referred to as the "hidden gem" and the "glue in electronics," tin has
strategic importance, classified as critical in numerous jurisdictions due to
supply chain vulnerabilities. With primary supply stagnating and major
producers facing challenges, including diminishing reserves and operational
disruptions, a supply deficit looms.
Primary tin supply has stagnated over the last five years, with over 75%
coming from just five countries: China, Indonesia, Myanmar, Peru and Bolivia.
During 2023 we continued to see major disruptions to supply, including
declining feedstocks and grades in China, delays in licensing and operational
challenges with offshore dredging in Indonesia, conflict in Myanmar leading to
suspensions of mining activities in Wa state and civil unrest in Peru.
There is an overarching trend in tin supply pointing towards a deficit against
demand, as existing supply remains stagnant, easy to mine alluvial deposits
become exhausted or environmentally untenable, and stocks continue to decline.
As demand recovers and grows, forecasts indicate a widening supply deficit,
leading to structurally higher prices necessary to facilitate the emergence of
new supply sources.
We are confident that First Tin remains well positioned to take advantage of
this opportunity and become a material tin supplier from its conflict-free and
low political risk jurisdictions.
Delivering on the expansion potential at our Taronga Asset in Australia
Our Taronga project in New South Wales has been a focal point of operational
excellence and strategic advancement. Acquired in 2022, Taronga stands as a
low-risk asset in a jurisdiction rich with infrastructure and historical
exploration data. The surrounding area has had over a century of exploration
and development with many underexplored tin showings providing major upside
potential.
Since its acquisition in 2022, First Tin has completed infill and extension
diamond and Reverse Circulation (RC) drilling to confirm historical data and
test for extensions to the south of the deposit. Twin diamond drilling of
1,657m in 14 drillholes and twin RC drilling of 664m in six drillholes was
completed and found statistically good agreement between Taronga Mines Pty Ltd
(TMPL) and earlier Newmont assays.
A total of 4,035m infill and extension RC drilling was completed in 40 drill
holes (three abandoned) and has extended the Payback Zone mineralisation for
approximately 400m to the southwest. Given that the southernmost line of
drilling returned significant mineralisation, we believe there is strong
potential for the mineralisation to the southwest to be extended even further.
The drilling undertaken at Taronga during the year facilitated the publication
of an updated Mineral Resource Estimate ("MRE"), which was a major milestone
during the period. Prepared by independent geological consultants H&S
Consultants Pty Ltd in accordance with the 2012 JORC Code & Guidelines,
the updated MRE is reported using a 0.05% tin (Sn) cut-off to a maximum depth
of 300m below surface (650mRL).
Category Tonnage (Million) Grade (% Sn) Tin (Tonnes)
Measured 33.0 0.13 44,200
Indicated 38.9 0.11 42,000
Sub-Total (M&I) 71.9 0.12 86,200
This Inferred 61.1 0.09 61,100
TOTAL 133.0 0.10 138,300
This is a substantial 240% increase in size on the previous MRE announced by
Aus Tin Mining Ltd in 2014 which was calculated using a 0.10% Sn cut-off.
The lower cut-off for the updated Mineral Resource is based on revised
economic considerations including higher 3-year trailing tin prices, lower
AUD:USD exchange rates and preliminary estimates of mining, processing and
G&A costs.
A direct comparison with the 2014 MRE by using a 0.10% Sn cut-off is:
2014 MRE H&SC 2023 MRE Percentage Change (%)
Tonnes (Million) Grade (%Sn) Tin (Tonnes) Tonnes (Million) Grade (%Sn) Tin (Tonnes)
Measured - - - 21.5 0.17 35,700 -
Indicated 26.9 0.17 45,200 16.5 0.16 26,000 (42.5)
Sub-Total 26.9 0.17 45,200 38.0 0.16 61,700 36.5
Inferred 9.4 0.13 12,000 13.4 0.14 18,600 55
TOTAL 36.3 0.16 57,200 51.7 0.16 80,300 40.4
The comparison represents a 40% increase in total contained tin metal based on
the same cut-off. The difference is primarily due to:
· Exploration drilling by First Tin successfully extending the
Mineral Resource to the southwest of the existing estimate
· A new geological interpretation
· A reconfigured grade interpolation technique
It also included a Measured Resource category for the first time. This is
based on the successful hole twinning drill programme conducted by First Tin
which validated the Newmont drilling data alongside a more in-depth study of
the Newmont QAQC data which confirmed the reliability of the historic drilling
data.
The DFS is now well advanced, with completion expected in the coming weeks.
Towards this end of the period under review, key workstreams showed that our
Taronga tin deposit is amendable to low strip ratio (ca., 1:1) open pit
mining, giving relatively low mining costs. There are very few open-pit tin
mines or projects worldwide and this style of deposit is seen as the
transition between alluvial and underground mining. The mineralogy allows a
simple processing flow sheet, with lower capital expenditure and operating
costs. Crushing pre-concentration test work undertaken in the period confirmed
significant upgrading effects for both high-grade and low-grade mineralisation
bulk samples. Due to selective breakage along veins, liberation of cassiterite
can be achieved simply by coarse crushing to 12mm and screening at 2.8mm. The
plus 2.8mm fraction is a discard, while the minus 2.8mm fraction goes through
the processing plant.
Further end-to-end mineral processing test work on a bulk sample with an
average grade of 0.18% Sn confirmed that the cassiterite is easily liberated
at a coarse crush size and that a good quality pre-concentrate can be obtained
using very simple gravity separation techniques.
Using coarse gravity techniques only (i.e. no fine tin recovery) and a
processing route that consists only of crushing, jigs, spirals, grinding and
shaking tables, followed by standard tin dressing techniques including finer
grinding and sulphide flotation, earlier testwork demonstrated that end to end
processing resulted in 52-56% of the total tin recovered into a plus 56% Sn,
low impurity tin concentrate.
Post period end, the Company announced that additional mineral processing test
work has shown enhanced recoveries from the gravity circuit of the project.
ALS Laboratory in Burnie, Tasmania, one of the foremost laboratories for tin
processing testwork worldwide, recently completed gravity circuit test work on
a low grade bulk sample and a variability core sample crushing
pre-concentrates which returned:
· Low grade bulk sample (0.11% Sn): 71.5% tin recovery to a
69.8% Sn concentrate
· Variability (0.13% Sn): 72.5% tin recovery to a 60.1% Sn
concentrate
End to end recovery is estimated to be around 60% after taking into account
losses at the crushing stage. The inclusion of a fine tin circuit will be
examined later as will improvements at the crushing stage which should
increase the overall recovery even further.
In addition, post period end, the Company reported findings from a scoping
study suggesting that employing a combination of gas engines for base load
power and night-time operations, complemented by solar panels for daytime
support, emerges as the most economical and environmentally conscious power
solution for Taronga. To enable this, the main three stage crusher would only
operate during day-light hours. With this approach, it is estimated that 53%
of the site's power demand would be generated by solar, and potentially reduce
the power cost by 58% compared to grid power as well as significantly reducing
the mine's carbon footprint.
Confirming Taronga as part of a tin district
During the period, we validated our thesis that Taronga is part of a broader
tin district.
In August, we announced the results from wide spaced drilling undertaken at
our Tin Beetle prospect, approximately 9km from the Taronga project and one of
six additional satellite prospects near Taronga.
Mineralisation was confirmed over the 2.3km(2) area tested. Significant
intercepts include:
· 48m @ 0.18% Sn from 2m incl. 21m @ 0.32% Sn from 2m and 3m @
0.28% Sn from 42m
· 30m @ 0.10% Sn from surface incl. 7m @ 0.16% Sn from 21m (entire
hole mineralised)
· 18m @ 0.07% Sn from 17m incl. 9m @ 0.10% Sn from 17m
· 78m @ 0.08% Sn from 7m incl. 12m @ 0.11% Sn from 7m and 12m @
0.13% Sn from 48m
· 57m @ 0.05% Sn from 62m
· 27m @ 0.08% Sn from 76m incl. 14m @ 0.12% Sn from 77m and 5m @
0.18% Sn from 85m
These intercepts are similar to early drill intercepts at the main Taronga
mineralisation. As a satellite, there is potential for on-site upgrading
before being taken by road to a central milling facility at Taronga. If
successful, this concept could significantly add to the annual tin production
and/or increase the overall life of the Taronga tin project. Further
drilling is planned once the Taronga DFS is completed.
These findings were supported by the results from the first systematic soil
sampling conducted across the Taronga site, reported post period end. Not only
did this programme confirm extensions to the known mineralisation to the
northeast and southwest at Taronga, but it also identified several potential
nearby satellite tin mineralisation targets and confirmed that no significant
mineralisation occurs beneath the proposed rock dumps at the Taronga mine
itself.
As a result, we are increasing our landholding and during the period applied
for a large, 276.6km2 Exploration License covering the majority of the Tingha
Field, located approximately 50km southwest of the Taronga Project. Tingha
is one of three main tin fields in northern NSW and south-eastern Queensland
that form the New England Tin Corridor. TMPL currently holds the majority of
the Emmaville Tin Field under its existing tenure. Following the granting of
the license in October 2023, TMPL now has access to most of the known tin
mineralised areas in north-eastern New South Wales, which consolidates the
exploration potential around the Taronga deposit.
Progressing Tellerhäuser, Germany
Our Tellerhäuser project is situated in the renowned tin district of Saxony,
benefitting from access to existing infrastructure that reduces the
anticipated capital expenditure. The project is owned by First Tin's 100%
owned German subsidiary, Saxore Bergbau GmbH ("Saxore").
During the period Saxore continued to assess the additional historic drilling
data from previously inaccessible old Wismut uranium exploration drillholes
discovered in archives pertaining to the Tellerhäuser project area. The
Wismut drillhole data could now be reviewed due to a change in the law
(Geological Data Act). The additional identified data represents an equivalent
of 1311 underground drillholes, surface drillholes and channel samples with a
total length of more than 44,900m and is still being analysed alongside the
data from the more recent drilling programme. All new data is currently being
added to the main database and should result in an increasingly robust
resource model and may lead to additional resource tonnes. Once this analysis
is complete, the Company expects to announce an update to the project's MRE.
In November 2023, a model of the groundwater flow was completed which showed
that a mining-induced dewatering of low-laying groundwater horizons will not
impact surface water bodies. The drinking water fountains that still operate
sporadically in the area will not be affected as they are fed from the upper
groundwater layers.
During the year, infrastructure requirements were progressed, with an analysis
and comparison of alternative transport routes from the site completed. The
German Rail Infrastructure Agency (DB InfraGo AG) informed us that space has
been reserved at the railway station (Grünstädtel) for our future planning.
Work commenced on the baseline study for power requirements underground as
well as on the surface.
Saxore signed an emergency assistance agreement with Wismut AG to practice
regularly with the established mine rescue team. The mine design was further
specified with an updated ventilation study, considering also emergency
situations underground. Further a backfill concept study in cooperation with
Patterson & Cook was concluded enabling our sustainable leave no trace
strategy.
Gottesberg, Germany to be evaluated
Progress on Gottesberg has been constrained as the Company has focused on
Taronga and Tellerhäuser. It has a large resource base and excellent
mineral processing characteristics and could benefit from lessons learned at
Taronga. It is proposed to more closely evaluate this project over the next
12-24 months.
Finance Review
The interim results for the period reflect continued investment by the Company
in progressing its two flagship assets through permitting and DFS study.
First Tin posted a comprehensive loss for the period of £2.82m and ended the
period with a cash balance of £4.66m and a net asset value of £38.97m.
Expenditure during the period was primarily focused on drilling activities to
extend the MREs, mineral processing test work, other DFS and permitting
related work to progress the development of our two assets. It is anticipated
that the Group will need to raise additional capital within the next 12 months
in order to continue to fund its activities at their planned levels.
Outlook
During the period under review, the Company made significant progress in
developing its assets, particularly at Taronga in Australia. Our focus in 2024
and beyond will be on:
· The completion of our Taronga DFS at the end of Q1 2024 and
completion of its Environmental Impact Statement (EIS) in July 2024.
· Completion of the data analysis and update of the MRE at Saxore.
· Evaluating financing options to advance Taronga through
permitting and engineering design.
We remain bullish on the macro-outlook for the tin market. Despite cyclically
constrained demand in 2023, the supply constraints led the tin market to end
2023 with only a modest surplus. Moving into 2024, the tin market is buoyant
as supply concerns are meeting a demand recovery. We have already seen the tin
price recover from $23k/t at the end of November to over $28.5k/t in
mid-March.
The demand for tin remains strong, with lower interest rates, stimulus efforts
by the Chinese government, and the continuous transition to green energy,
creating the conditions for a material supply ongoing deficit from 2026.
We are confident that First Tin remains well positioned to benefit from this
opportunity and become a material supplier of conflict-free tin from our low
political risk jurisdictions in Australia and Germany. With our strategic
approach and business model, we are poised to unlock the significant value
within our tin assets.
I would like to thank all our shareholders for your ongoing support of First
Tin as we pursue our strategic objectives. We have entered 2024 with
confidence and I look forward to delivering and communicating our progress as
we continue to develop our flagship assets and fulfil our ambitions to become
a leading supplier of tin.
W A (Bill) Scotting
Chief Executive Officer
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
Note 2023 2022
(Unaudited) (Audited)
£ £
Administrative expenses (2,355,495) (3,240,389)
Operating loss (2,355,495) (3,240,389)
Finance income 100,104 -
Finance costs (23) (2,557)
Loss before tax (2,255,414) (3,242,946)
Income tax expense - -
Loss for the year (2,255,414) (3,242,946)
Other comprehensive (loss)/income
Exchange differences on translation of foreign
operations (561,581) 118,937
Other comprehensive (loss)/income for the
year (561,581) 118,937
Total comprehensive loss for the year (2,816,995) (3,124,009)
Total comprehensive loss attributable to
the equity holders of the company (2,816,995) (3,124,009)
Basic loss - pence per share 5 (0.85) (1.40)
Diluted loss - pence per share 5 (0.85) (1.40)
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
Note 2023 2022
(Unaudited) (Audited)
£ £
Non-current assets
Intangible assets 7 33,084,761 27,367,552
Property, plant and equipment 8 2,474,661 1,589,748
35,559,422 28,957,300
Current assets
Trade and other receivables 9 278,925 808,711
Cash and cash equivalents 4,657,026 13,823,173
4,935,951 14,631,884
Current liabilities
Trade and other payables 10 (1,528,482) (1,805,298)
Net current assets 3,407,469 12,826,586
Total assets less current liabilities 38,966,891 41,783,886
Net assets 38,966,891 41,783,886
Capital and reserves
Called up share capital 12 265,535 265,535
Share premium account 18,391,046 18,391,046
Merger relief reserve 17,940,000 17,940,000
Warrant reserve 269,138 269,138
Retained earnings 2,632,180 4,887,594
Translation reserve (531,008) 30,573
Shareholders' funds 38,966,891 41,783,886
The Condensed Consolidated Financial Statements were approved and authorised
for issue by the Board of Directors on 27 March 2024 and were signed on its
behalf by:
C Cannon Brookes
Director
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
2023 2022
(Unaudited) (Audited)
£ £
Cash flows from operating activities
Operating loss for the period (2,355,495) (3,240,389)
Adjustments to reconcile loss before tax to net cash flows:
Depreciation of tangible assets 54,265 20,597
Loss on disposal of tangible assets 18,009 -
Share-based payment expense - 707,100
Decrease in trade and other receivables 529,786 (357,635)
(Decrease)/increase in trade and other payables (276,816) 1,503,846
Cash used in operations (2,030,251) (1,366,481)
Interest paid (23) 2,557
Net cash flows used in operating activities (2,030,274) (1,369,038)
88
Cash flows from investing activities
Purchase of intangible assets (6,356,040) (5,288,557)
Receipt of government grants 218,212 -
Purchase of property, plant and equipment (1,024,659) (600,907)
Cash acquired on acquisition of Taronga - 102
Interest received 100,104 -
Net cash flows used in investing activities (7,062,383) (5,889,362)
Cash flows from financing activities
Proceeds from issue of shares - 19,000,000
Share issuance costs - (368,521)
Net cash flows generated from financing activities - 18,631,479
Net (decrease)/increase in cash (9,092,657) 11,373,079
Cash and cash equivalents at beginning of year 13,823,173 2,503,714
Exchange loss on cash and cash equivalents (73,490) (53,620)
Cash at the end of year 4,657,026 13,823,173
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
Merger
Share Share relief Warrant Retained Translation Total
capital premium reserve reserve earnings reserve equity
£ £ £ £ £ £ £
At 1 January 2023 265,535 18,391,046 17,940,000 269,138 4,887,594 30,573 41,783,886
Loss for the year - - - - (2,255,414) - (2,255,414)
Other comprehensive loss for
the year - - - - - (561,581) (561,581)
Total comprehensive loss
for the year - - - - (2,255,414) (561,581) (2,816,995)
At 31 December 2023 265,535 18,391,046 17,940,000 269,138 2,632,180 (531,008) 38,966,891
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
Merger
Share Share relief Warrant Retained Translation Total
capital premium reserve reserve earnings reserve equity
£ £ £ £ £ £ £
At 1 January 2022 138,868 17,931,296 - 95,372 (10,507,856) (88,364) 7,569,316
Loss for the year - - - - (3,242,946) - (3,242,946)
Other comprehensive loss for
the year - - - - - 118,937 118,937
Total comprehensive loss
for the year - - - - (3,242,946) 118,937 (3,124,009)
Transactions with owners:
Capital reduction - (17,931,296) - - 17,931,296 - -
Issuance of shares (net of
issuance costs) 66,667 18,564,812 - - - - 18,631,479
Shares issued to acquire
Taronga 60,000 - 17,940,000 - - - 18,000,000
Share-based payments - (173,766) - 173,766 707,100 - 707,100
Total transactions with
owners 126,667 459,750 17,940,000 173,766 18,638,396 - 37,338,579
At 31 December 2022 265,535 18,391,046 17,940,000 269,138 4,887,594 30,573 41,783,886
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
1. General Information
The Company is a public company limited by shares, incorporated in England and
Wales under the Companies Act 2006. The Company's registered address is First
Floor, 47/48 Piccadilly, London, W1J 0DT.
First Tin Plc ("the Company'') and its subsidiaries own two advanced tin
projects, one in Germany and one in Australia, and is seeking to bring both
projects into production in order to be able to deliver a sustainable answer
to the material supply issues faced by industrial tin consumers.
The condensed consolidated financial statements comprise financial information
of the Company and its subsidiaries (the "Group").
2. Significant accounting policies
2.1 Basis of preparation
The unaudited condensed consolidated financial statements for the year ended
31 December 2023 have been prepared in accordance with the Disclosure and
Transparency Rules of the Financial Conduct Authority and International
Accounting Standard 34 "Interim Financial Reporting" (IAS 34). Other than as
noted below, the accounting policies applied by the Group in the preparation
of these condensed consolidated financial statements are the same as those set
out in the Group's audited financial statements for the year ended 31 December
2022. These condensed consolidated financial statements have been prepared
under the historical cost convention except for certain financial and equity
instruments that have been measured at fair value.
These condensed consolidated financial statements do not include all of the
information required for a complete set of IFRS financial statements. However,
selected explanatory notes are included to explain events and transactions
that are significant to an understanding of the changes in the Group's
financial position and performance since the audited financial statements for
the year ended 31 December 2022.
Statutory accounts for the year ended 31 December 2022 have been filed with
the Registrar of Companies and the auditor's report was unqualified, did not
contain any statement under Section 498(2) or 498(3) of the Companies Act 2006
and did not contain any matters to which the auditors drew attention without
qualifying their report.
The Group has changed its accounting reference date to 30 June and
consequently will report again for the 18 month period ending 30 June 2024.
A number of amended standards became applicable for the current reporting
period. The Group did not have to change its accounting policies or make
retrospective adjustments as a result of adopting these amended standards.
The condensed consolidated financial statements are unaudited and were
approved by the Board of Directors on 27 March 2024
2. Significant accounting policies (continued)
2.2 Going concern
The Group currently has no income and meets its working capital requirements
through raising development finance. In common with many businesses engaged in
exploration and evaluation activities prior to production and sale of minerals
the Group will require additional funds and/or funding facilities in order to
fully develop its business plan. Ultimately the viability of the Group is
dependent on future liquidity in the exploration and study period and this, in
turn, depends on the availability of external funding.
The Directors have prepared financial projections and plans for a period of at
least 12 months from the date of approval of these condensed consolidated
financial statements. It is anticipated that additional capital will need to
be raised within the next 12 months in order to continue to fund the Group's
activities at their planned levels. This represents a material uncertainty
that may cast significant doubt on the Group's ability to continue as a going
concern. If the Group was unable to raise additional capital the cash balance
as at 31 December 2023 would be insufficient to fund the Group's activities at
their current level for a period of at least 12 months from the date of
approval of these condensed consolidated financial statements. However, the
Directors have a reasonable expectation that this uncertainty can be managed
to a successful outcome, and based on that assessment, the Group will have
adequate resources to continue in operational existence for the foreseeable
future. Accordingly, these condensed consolidated financial statements have
been prepared on the going concern basis.
The condensed consolidated financial statements do not reflect any adjustments
that would be required to be made if they were to be prepared on a basis other
than the going concern basis.
3. Critical accounting estimates and judgements
The preparation of the Group's condensed consolidated financial statements
requires the Directors to make estimates and assumptions that affect the
reported amounts of assets and liabilities and the disclosure of contingent
assets and liabilities. Estimates and judgements are continually evaluated and
are based on historical experience and other factors including expectations of
future events that are believed to be reasonable under the circumstances.
Actual results may differ from these estimates. Critical judgements and areas
where the use of estimates is significant are set out in the audited
consolidated financial statements for the year ended 31 December 2022.
4. Segmental reporting
In the opinion of the Board of Directors the Group has one operating segment,
being the exploitation of mineral rights.
The Group also analyses and measures its performance into geographic regions,
specifically Germany and Australia.
Non-current assets by region are summarised below:
2023 2022
£ £
Germany 8,641,903 6,824,224
Australia 26,917,519 22,133,076
35,559,422 28,957,300
5. Loss per Ordinary share
2023 2022
£ £
Loss for the year attributable to the ordinary
equity holders of the Company (£) (2,255,414) (3,242,946)
Basic loss per Ordinary share
Weighted average number of Ordinary shares
in issue 265,534,972 231,872,871
Basic loss per Ordinary share (pence) (0.85) (1.40)
Diluted loss per Ordinary share
Weighted average number of Ordinary shares
in issue 265,534,972 232,112,833
Diluted loss per Ordinary share (pence) (0.85) (1.40)
For diluted loss per share, the weighted average number of ordinary shares in
issue is adjusted to assume conversion of all potential dilutive warrants and
options over ordinary shares. Potential ordinary shares resulting from the
exercise of warrants and options have an anti-dilutive effect due to the Group
being in a loss position. As a result, diluted loss per share is disclosed as
the same value as basic loss per share.
6. Share-based payments
Share options and warrants
The following table shows the movements in the share-based payment reserve
during the year:
No. of No. of No. of No. of
options options warrants warrants
2023 2022 2023 2022
£ £ £ £
Outstanding at beginning of period 10,060,000 1,560,000 5,668,000 3,168,000
Granted during the period - 8,500,000 - 2,500,000
Expired during the period (1,560,000) - - -
Outstanding at the end of the period 8,500,000 10,060,000 5,668,000 5,668,000
Exercisable at the end of the period 8,500,000 10,060,000 5,668,000 5,668,000
Weighted average exercise price (pence) 33 30 26 26
Impact on the statement of comprehensive income
Share options
The Group recognised a charge of £nil in profit or loss for the year ended 31
December 2023 (2022: £707,100. The expense is comprised of £nil (2022:
£582,317) relating to directors (see Note 11 ) and £nil (2022: £124,783)
relating to staff and consultants.
Share warrants
The Group recognised a charge of £nil in share premium for the year ended 31
December 2023 (2022: £1,173,766).
7. Intangible assets
Exploration
and
evaluation
assets
£
Cost
At 1 January 2022 3,380,913
Additions 5,288,557
Acquisition of Taronga 18,558,503
Currency translation 139,579
At 31 December 2022 27,367,552
Additions 6,356,040
Government grant (218,212)
Currency translation (420,619)
At 31 December 2023 33,084,761
The intangible assets relate to the Tellerhäuser and Taronga tin projects
located in southern Saxony in the east of Germany and Australia, respectively.
The Directors assess for impairment when facts and circumstances suggest that
the carrying amount of an Exploration and evaluation ("E&E") asset may
exceed its recoverable amount. In making this assessment, the Directors have
regard to the facts and circumstances noted in IFRS 6 paragraph 20. In
performing their assessment of each of these factors, at 31 December 2023, the
Directors have:
a) reviewed the time period that the Group has the right to explore the
area and noted no instances of expiration, or licences that are expected to
expire in the near future and not be renewed;
b) determined that further E&E expenditure is either budgeted or
planned for all licences;
c) not decided to discontinue exploration activity due to there being a
lack of quantifiable mineral resource; and
d) not identified any instances where sufficient data exists to indicate
that there are licences where the E&E spend is unlikely to be recovered
from successful development or sale.
On the basis of the above assessment, the Directors are not aware of any facts
or circumstances that would suggest the carrying amount of the E&E asset
may exceed its recoverable amount.
8. Property, plant and equipment
Land & Motor Fixtures &
Buildings Vehicles Fittings Total
£ £ £ £
Cost
At 1 January 2022 - 38,803 37,797 76,600
Additions 415,220 110,583 75,104 600,907
Acquisition of Taronga 965,939 - 34,202 1,000,141
Currency translation (21,179) 1,658 3,119 (16,402)
At 31 December 2022 1,359,980 151,044 150,222 1,661,246
Additions 847,609 18,800 158,250 1,024,659
Disposals - (30,755) (7,967) (38,722)
Currency translation (63,379) (5,820) 1,621 (67,578)
At 31 December 2023 2,144,210 133,269 302,126 2,579,605
Depreciation
At 1 January 2022 - 17,567 30,182 47,749
Charge for year - 9,334 11,263 20,597
Currency translation - 1,160 1,992 3,152
At 31 December 2022 - 28,061 43,437 71,498
Charge for year - 12,766 41,499 54,265
Disposals - (15,277) (5,436) (20,713)
Currency translation - (627) 521 (106)
At 31 December 2023 - 24,923 80,021 104,944
Net book value
At 31 December 2023 2,144,210 108,346 222,105 2,474,661
At 31 December 2022 1,359,980 122,983 106,785 1,589,748
9. Trade and other receivables
2023 2022
£ £
Prepayments and other receivables 149,423 386,287
Recoverable value added taxes 129,502 422,424
278,925 808,711
10. Trade and other payables
2023 2022
£ £
Trade payables 945,903 761,512
Accruals 495,046 949,004
Other payables 87,533 94,782
1,528,482 1,805,298
11. Related party transactions
Directors' remuneration and fees
The table below sets out the Directors' remuneration and fees:
Year ended 31 December 2023 Share based
Fees payments Total
£ £ £
Mr T Buenger 283,250 - 283,250
Mr W A Scotting* 18,000 - 18,000
Mr C Cannon Brookes** 35,000 - 35,000
Ms C Apthorpe 40,000 - 40,000
Mr S Cornelius 30,000 - 30,000
Mr I Hofmaier 45,000 - 45,000
Mr N Mather*** 27,136 - 27,136
Mr R G J Ainger 14,464 - 14,464
492,850 - 492,850
* Fees relating to Mr W A Scotting are paid to Hunter
Rimac Associates Limited.
** Fees relating to Mr C Cannon Brookes are paid to
Arlington Group Asset Management Limited.
** Fees relating to Mr N Mather are paid to Samuel Capital
Pty.
11. Related party transactions (continued)
Directors' remuneration and fees (continued)
Year ended 31 December 2022 Share based
Fees payments Total
£ £ £
Mr T Buenger 378,267 374,347 752,614
Mr C Cannon Brookes* 32,769 - 32,769
Ms C Apthorpe 32,769 - 32,769
Mr S Cornelius 29,128 - 29,128
Mr I Hofmaier 29,250 - 29,250
M N Mather** 7,500 - 7,500
509,683 374,347 884,030
* Fees relating to Mr C Cannon Brookes are paid to
Arlington Group Asset Management Limited.
** Fees relating to Mr N Mather are paid to Samuel Capital
Pty.
Other fees and transactions
Mr C Cannon Brookes was a director of Arlington Group Asset Management Limited
("Arlington") for the period under review. During the year, Arlington invoiced
and was paid £85,000 in respect of financial advisory fees and director's
fees (2022: £876,004 in respect of fund-raising commissions and expenses,
financial advisory fees and director's fees). In the year ended 31 December
2022, Arlington was granted 2,500,000 warrants, with an exercise price of 33
pence, exercisable over a period of two years from the date of grant. The
Group recognised a charge against share premium of £176,766 in respect of
these warrants. No warrants were issued during the current period.
Mr R G J Ainger was a director of RFA Consulting Limited ("RFA") for the
period under review. During the year, RFA invoiced and was paid £36,000 in
respect of company secretarial services (2022: £36,000).
12. Share capital
2023 2022
£ £
Allotted, called up and fully paid
265,534,972 (2022: 265,534,972) Ordinary shares of £0.001 each 265,535 265,535
The shares have attached to them full voting, dividend and capital
distribution (including on winding up) rights; they do not confer any rights
of redemption.
13. Ultimate controlling party
In the opinion of the Directors, there is no controlling party.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END IR SEWFUWELSESDRecent news on First Tin
See all newsREG - First Tin PLC - Director/PDMR Shareholding
AnnouncementREG - First Tin PLC - Director/PDMR Shareholding
AnnouncementREG - First Tin PLC - Results of Taronga Definitive Feasibility Study
AnnouncementREG - First Tin PLC - Notice of Taronga DFS Results and Presentation
AnnouncementREG - First Tin PLC - Taronga Mineral Processing Update
Announcement