REG - First Tin PLC - Interim Results
22/09/2023 07:00
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RNS Number : 2803N First Tin PLC 22 September 2023
22 September 2023
First Tin Plc
("First Tin" or "the Company")
Interim Results for the six months ended 30 June 2023
First Tin PLC, a tin development company with advanced, low capex projects in
Germany and Australia, today publishes its final interim results for the six
months ended 30 June 2023.
Highlights
· Ended the period with a robust cash position of over £7.9m (30
June 2022: £18.8m)
· Loss before tax of £2.3m (30 June 2022: £2.1m)
· The fully funded DFS at Taronga, Australia continued at pace:
o Signed an agreement with BID Energy Partners to provide a feasibility
study on renewable energy supply options which has the potential to materially
reduce the power costs of the project, supports permitting and is aligned with
First Tin's desire to have the highest ESG credentials for the benefit of all
our stakeholders
o Completed all confirmatory drilling and exploration work with results from
the programme confirming both the widths and grades of mineralisation
previously reported by Newmont between 1979 and 1982 and identifying an
approximate 400m extension to the southwest
o Discovered the Tin Beetle prospect, with drilling confirming
mineralisation over the entire 2.3km tested and validating First Tin's thesis
that Taronga is part of a tin district rather than a singular tin occurrence
o 100% owned Australia subsidiary - Taronga Mines Pty Ltd ("TMPL") applied
for a large (276.6km2) Exploration Licence covering the majority of the Tingha
tin field, consolidating First Tin's control of significant historical tin
producing areas in northeastern New South Wales (post period end)
o Crushing testwork results confirmed significant upgrading effect for both
high-grade and low-grade mineralisation at the Taronga tin project
(post-period end)
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, demonstrating the true scale of the Taronga asset (post-period end)
o Results from end-to-end mineral processing testwork identified a simple
and cost-effective processing option for the tin mineralisation found at the
asset (post-period end)
· Continued to progress the Tellerhäuser project, Germany:
o Saxonian Mining Authority confirmed eligibility to move straight to the
construction and operational permitting process, reducing the overall
permitting timeframe by up to 12-18 months
o Submitted complete documentation for mine permit application to the
Saxonian Mining Authority with a decision expected prior to the end of Q3 2024
o Continuing to expand the current JORC MRE by utilising the recently
uncovered historical Wismut drilling data alongside additional drilling
Thomas Buenger, Chief Executive Officer, commented:
" First Tin has made strong progress during the period, executing key
workstreams and adding significant value at both its flagship tin assets in
Australia and Germany. The management team has focused on advancing both
assets through their Definitive Feasibility Studies, while extension
development and exploration drill programmes have produced excellent results.
"We remain well-positioned to complete both DFS studies at our Taronga and
Tellerhäuser assets, during Q1 2024 and Q3 2024, respectively.
"Tin is fundamental in any plan to decarbonise and electrify the world. At the
same time, global tin supply is falling with 75% of global tin production from
non-Tier-One, non-OECD countries. Therefore, it is vital that demand is met by
companies which are dedicated to supplying tin reliably and responsibly. First
Tin remains committed to bringing its assets into production at a pivotal time
and is poised to become a material future tin supplier from its conflict-free
and low political risk jurisdictions."
Analyst Presentation
There will be a Zoom webinar for equity analysts at 10:30am BST today, hosted
by Thomas Buenger, CEO and Charles Cannon-Brookes, Non-Executive Chairman. Any
analysts wishing to register for the event should email
firsttin@secnewgate.co.uk (mailto:firsttin@secnewgate.co.uk) .
Investor Presentation Reminder
Additionally, Thomas Buenger, CEO and Tony Truelove, COO, will provide a live
presentation for investors via the Investor Meet Company platform at 09:00am
BST on Monday 25(th) September 2023.
The presentation is open to all existing and potential shareholders. Questions
can be submitted pre-event via the Investor Meet Company dashboard up until
9:00am the day before the meeting or at any time during the live presentation.
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
Thomas Buenger - 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 07900 248 213
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.
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. Its assets have been de-risked significantly, with
extensive work undertaken to date.
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 PERIOD ENDED 30 JUNE 2023
I am pleased to report that during the six months ended 30 June 2023, First
Tin has achieved strong operational progress, completing key workstreams at
both of its flagship tin projects in Australia and Germany. Despite persistent
macroeconomic challenges such as the ongoing war in Ukraine, increasing
geopolitical tensions and volatility of global stock exchanges, our teams in
Australia and Germany have worked diligently to add value and to reduce risk
at both our assets.
After a rollercoaster year in 2022 where the tin price hit record high prices
of c.US$50k per tonne in March and then hit a two-year price low of c.US$17k
in October, the period under review has seen a much less volatile price range
of between US$20k-US$30k. This has been set against a market backdrop where
falling global supply has been more than countered by weak global demand.
On the supply side, material disruptions from a number of leading
tin-producing countries such as Bolivia, Peru, Indonesia, China and Wa State,
impacted the global tin market. Market forecasts indicate that an excess of
10,000 tonnes could be removed from the annual global tin supply in 2023
alone. Against such a bearish supply picture, one would have expected to see a
significant increase in tin spot prices. However, this supply weakness has
been more than offset by a general drop-off in global demand. This demand
reduction has predominantly come from traditional tin sectors such as tinplate
and chemicals and from a general drop in the demand for consumer electronics
driven by low global GDP growth forecasts and high interest rates which have
curtailed demand for luxury goods. While it is hard to accurately forecast
when aggregate tin demand will strengthen, tin is experiencing strong levels
of demand in some individual sectors such as in solar ribbon and electric
vehicles. The longer-term picture for tin remains bright with material
deficits still forecast to start in 2026 exactly when First Tin intends to
bring its two flagship assets into production.
Tin remains a vital ingredient for global decarbonisation and is a key
component in the production of semiconductors, artificial intelligence
technology, electric vehicles, batteries, solar panels, and renewable
technology. The pressures facing companies to decarbonise their supply chains
mean that it is essential that this demand is met by companies which are
dedicated to supplying tin reliably and responsibly. First Tin remains
committed to bringing its assets into production at a pivotal time and is
poised to become a material future tin supplier from its conflict-free and low
political risk jurisdictions.
During the period, the management team focused on advancing both assets
through their respective Definitive Feasibility Studies ("DFS"). We have made
strong operational progress at our Taronga asset, successfully completing all
drilling and exploration work and publishing an updated JORC compliant Mineral
Resource Estimate ("MRE") which increased the size of the Taronga resource by
over 240% to 133 million tonnes. This updated JORC MRE statement demonstrates
the true scale of our Taronga asset and I am pleased to report that there
remains plenty of scope to further increase the size of total resource both
from the Taronga asset itself and from its satellite orebodies.
However, perhaps the most promising development at Taronga in the interim
period has been the results from the beneficiation and processing work
undertaken on high-grade and low-grade bulk samples. This work showed that the
high-grade bulk sample (0.18% Sn head grade) was simply and cheaply upgraded
to 0.63% Sn using only a simple coarse crushing and screening technique
followed by jigs and spirals while the mass was reduced by 73% and 79% of the
tin content was retained. This low-cost and simple beneficiation solution is a
unique feature of the Taronga orebody corroborating previous historical work
undertaken by Newmont. Furthermore, the estimated 73% reduction in the tonnage
that needs to be processed after the beneficiation process will have a
material positive impact on future capex and opex forecasts. The DFS at
Taronga is on track to be completed during Q1 2024.
At our Tellerhäuser asset, we have made solid progress in terms of permitting
the project, receiving confirmation that the mine permit will go through a
fast-track process. Work on the ground in Germany and in relation to the
ongoing DFS has been focussed on permitting work, metallurgy, and processing,
as well as on expanding the current JORC MRE by utilising the recently
uncovered historical Wismut drilling data. We expect to be able to release an
updated MRE on both Hammerlein and Dreiberg deposits before the end of the
year, with the DFS forecast to be released in Q3 2024 and the granting of the
mining license shortly thereafter.
On behalf of the Board, I would like to thank the First Tin management team
and employees for their ongoing determination and hard work, which has
resulted in a series of significant operational achievements during the
period. I would also like to thank all of our stakeholders for their continued
support and commitment. We look forward to the second half of 2023 with great
excitement as we continue to progress our flagship assets.
C Cannon Brookes
Chairman
CHIEF EXECUTIVE OFFICER'S REPORT
FOR THE PERIOD ENDED 30 JUNE 2023
First Tin has a clear ambition: to develop a sustainable, reliable,
conflict-free supply of tin which meets the stringent ESG values that are
increasingly driving the purchasing behaviour of consumers globally, and
therefore the businesses which serve them.
With customers and brands alike scrutinising the provenance and Scope 3
emissions associated with the materials and products they purchase, there is a
significantly growing demand for high-quality, traceable, ESG-compliant
sources of tin. These customers and brands now expect to receive tin which has
been produced in a way which benefits the communities in which the mine is
located, and which upholds best-in-class health and safety practices.
This embodies First Tin's approach to mining and together our assets represent
the fifth largest undeveloped tin reserves globally, outside of Russia,
Kazakhstan, and the DRC. Our assets are located in the low-risk, conflict-free
jurisdictions of Australia and Germany and their development is being led by a
management team with significant personal investment committed to bringing
them into production in an environmentally compliant way.
Tin is a designated critical material due to its vital role in decarbonising
and electrifying the world. First Tin is positioned to deliver its first
production to coincide closely with a market deficit which is forecast to
start in 2026 and remain in deficit for many years thereafter unless material
new sources of tin supply can be found.
Taronga - Australia
Taronga is located in New South Wales. It is a low-risk asset in a low-risk
jurisdiction. Acquired in 2022 by First Tin, it is surrounded by excellent
existing infrastructure and benefits from over a century of development and
abundant underexplored tin showings, providing major exploration upside
potential. Significant exploration work was undertaken by BHP in 1933, 1958,
and 1964, and by the Newmont Joint Venture from 1979 to 1983.
Since our IPO in April 2022, we have been focused on drilling at Taronga to
confirm the historical data and extend the mineralisation and I am pleased to
say that we have been successful on both fronts. As recently announced, the
Company's JORC compliant Mineral Resource Estimate ("MRE") increased by 240%
to a new total of 138,300 tonnes contained tin with significant
potential for further increases.
The MRE was completed by independent geological consultants H&S
Consultants Pty Ltd and prepared in accordance with the 2012 JORC Code &
Guidelines.
It was 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
Inferred 61.1 0.09 61,100
TOTAL 133.0 0.10 138,300
(minor rounding errors)
Aus Tin Mining Ltd's previous MRE, reported in 2014, was calculated using a
0.10% Sn cut-off. The lower cut-off for the updated MRE 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.
When comparing the two Mineral Resources, we are pleased to see that the
updated MRE represents a 40% increase in total contained tin metal based on
the same cut-off. This has been successfully delivered due to exploration
drilling by First Tin extending the Mineral Resource to the southwest of the
existing estimate, a new geological interpretation, and a reconfigured grade
interpolation technique.
We believe that Taronga should not be seen as a stand-alone asset, but rather
as the most developed asset in what is a tin district. In May 2023, we were
delighted to confirm our thesis through the receipt of the first drill hole
from our Tin Beetle satellite prospect, 9km from the Taronga tin deposit. The
first hole returned 7 metres @ 0.63% Sn within a broader intersection of 48
metres @ 0.18% Sn from 2 metres depth. Tin Beetle is one of six potential
satellite deposits for Taronga, and we look forward to initialising further
exploration and drilling programmes in the coming months.
The Company has also been focussing on advancing the mineral processing work
at Taronga in order to finalise its final flow sheet and preferred processing
route. As recently announced, crush, jig and spiral test results confirmed the
premise that the cassiterite (SnO2 - tin ore mineral) is easily liberated at a
coarse crush size and that a good quality 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 and shaking tables, it has been demonstrated that 55%
of the total tin can be recovered into a 56% low impurity Sn concentrate.
Due to the simplicity of the coarse tin only circuit, this processing flow
sheet has now been chosen as the go-forward option for the Definitive
Feasibility Study ("DFS"), with the possible additions of a fine tin recovery
circuit and/or supplementary crushing options being investigated as part of
future optimisation work to further increase recovery rates. Ongoing recovery
studies on lower grade samples are currently in progress, designed to obtain a
realistic grade-recovery curve for use in the DFS and will be announced when
received.
It is also worth noting that during the period, we partnered with BID Energy
Partners, an Australia-based energy company, to provide a feasibility study on
renewable energy supply options for Taronga. This is a critical element for
the Company's efforts to minimise its carbon footprint and be energy
efficient. Fortunately, we are well placed to take advantage of renewable
energy due to a number of factors, including our freehold ownership over a
significant portion of land around the project which is sufficient to develop
significant solar and/or wind farms, with high-solar capacity and good wind
speed characteristics.
In summary, the material increase in the Taronga JORC MRE, including the
inclusion of a Measured Resource category for the first time, alongside the
validation of a low-cost and simple beneficiation process, positions the
Company well. We aim to complete the DFS at this asset during Q1 2024.
Tellerhäuser - Germany
Our Tellerhäuser project is one of the world's most advanced tin deposits. It
is located in the tin district of Saxony, which showcases an exceptionally
long history of mining and has an active Mining Licence for the extraction of
mineral resources valid until 30 June 2070. A Scoping Study previously
undertaken on Tellerhäuser in 2021, showed positive overall economics for the
project with a very low up-front CAPEX number of US$49m. First Tin's current
efforts are to drive forward a DFS on the project with a targeted completion
date in H2 2024.
As part of this DFS effort, further deep drilling was completed during the
period in the Dreiberg target. We successfully intersected high-grade tin
mineralisation at depth and along strike from the previous holes drilled by
Wismut with each of the four holes drilled. The results were highly
encouraging, confirming the skarn horizon is present, continuous and
mineralised with high-grade tin which corroborates the legacy Wismut drilling
from over 40 years ago.
We were also able to benefit from the ongoing data mining of a considerable
amount of historical drilling data for the Tellerhäuser project area.
Following granting of the Mining Licence in 2021, Saxore was able to request
additional historical data, in particular drillholes targeting uranium
mineralisation, that were also assayed for tin and other metals. This data is
currently being added to the main database and should lead to additional
resource tonnes being added very cost effectively. We expect to publish an
updated JORC compliant MRE for Tellerhäuser during December 2023.
During the period, we also made positive progress in relation to permitting.
Having already received confirmation from the Saxonian Mining Authority that
the asset is eligible to move straight to the construction and operational
permitting process, we announced the submission of the complete documentation
for our mine permit application in June 2023. The Company expects that a
mining license will be issued in Q3 2024 shortly after the release of the DFS.
Finance Review
Interim 2023 represents a period of investment by the Company as it progresses
both its flagship assets through permitting and their respective DFS studies.
In respect of the financial results, First Tin posted a comprehensive loss for
the period of GBP£1.4m and ended the period with a healthy cash position of
GBP£8.0m and a net asset value of GBP£39.5m.
Expenditure during the period was primarily focused on drilling activities and
other DFS related costs as well as on strategic land, property, and machinery
acquisitions.
Outlook
The work undertaken during the period has significantly progressed the
development of both of the Company's core assets and has increased value. With
the expected release of a DFS at our Taronga asset due in Q1 2024, we are
making positive strides towards our 2026 production target and remain excited
at the momentum we are building.
I would like to thank our valued investors for their continued support, and I
look forward to reporting on our ongoing progress.
T Buenger
Chief Executive Officer
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 30 JUNE 2023
Note Period to Period to
30 30
June June
2023 2022
(Unaudited) (Unaudited)
£ £
Administrative expenses (1,462,689) (896,968)
IPO costs - (505,335)
Share based payments (non-cash) 6 - (707,100)
Operating loss (1,462,689) (2,109,403)
Finance income 48,886 -
Finance costs (23) -
Loss before tax (1,413,826) (2,109,403)
Income tax expense - -
Loss for the period (1,413,826) (2,109,403)
Other comprehensive (loss)/income
Exchange differences on translation of foreign
operations (862,072) 51,628
Other comprehensive (loss)/income for the
period (862,072) 51,628
Total comprehensive loss for the period (2,275,898) (2,057,775)
Total comprehensive loss attributable to
the equity holders of the company (2,275,898) (2,057,775)
Basic loss - pence per share 5 (0.53) (1.07)
Diluted loss - pence per share 5 (0.53) (1.07)
The Notes on pages 11 to 18 form an integral part of these Condensed
Consolidated Financial Statements.
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2023
Note 30 31
June December
2023 2022
(Unaudited) (Audited)
£ £
Non-current assets
Intangible assets 7 30,132,339 27,367,552
Property, plant and equipment 8 2,319,561 1,589,748
32,451,900 28,957,300
Current assets
Trade and other receivables 9 429,289 808,711
Cash and cash equivalents 7,999,951 13,823,173
8,429,240 14,631,884
Current liabilities
Trade and other payables 10 (1,373,152) (1,805,298)
Net current assets 7,056,088 12,826,586
Total assets less current liabilities 39,507,988 41,783,886
Net assets 39,507,988 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 3,473,768 4,887,594
Translation reserve (831,499) 30,573
Shareholders' funds 39,507,988 41,783,886
The Notes on pages 11 to 18 form an integral part of these Condensed
Consolidated Financial Statements.
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 30 JUNE 2023
Period to Period to
30 30
June June
2023 2022
(Unaudited) (Unaudited)
£ £
Cash flows from operating activities
Operating loss for the period (1,462,689) (2,109,403)
Adjustments to reconcile loss before tax to net cash flows:
Depreciation of tangible assets 33,725 8,702
Share-based payment expense - 707,100
Decrease in trade and other receivables 379,422 74,851
(Decrease)/increase in trade and other payables (432,146) 86,031
Cash used in operations (1,481,688) (1,232,719)
Interest paid (23) -
Net cash flows used in operating activities (1,481,711) (1,232,719)
Cash flows from investing activities
Purchase of intangible assets (3,542,389) (743,899)
Receipt of government grants 129,730 -
Purchase of property, plant and equipment (884,608) (279,294)
Cash acquired on acquisition of Taronga - 102
Interest received 48,886 -
Net cash flows used in investing activities (4,248,381) (1,023,091)
Cash flows from financing activities
Issuance of shares (net of issuance costs) - 18,631,479
Net cash flows generated from financing activities - 18,631,479
Net (decrease)/increase in cash (5,730,092) 16,375,669
Cash and cash equivalents at beginning of year 13,823,173 2,503,714
Exchange loss on cash and cash equivalents (93,130) (32,225)
Cash at the end of period 7,999,951 18,847,158
The Notes on pages 11 to 18 form an integral part of these Condensed
Consolidated Financial Statements.
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 30 JUNE 2023
Merger
Share Share relief Warrant Retained Translation Total
capital premium reserve reserve earnings reserve equity
£ £ £ £ £ £ £
At 1 January 2022 265,535 18,391,046 17,940,000 269,138 4,887,594 30,573 41,783,886
Loss for the period - - - - (1,413,826) - (1,413,826)
Other comprehensive loss for
the year - - - - - (862,072) (862,072)
Total comprehensive loss
for the year - - - - (1,413,826) (862,072) (2,275,898)
At 30 June 2023 265,535 18,391,046 17,940,000 269,138 3,473,768 (831,499) 39,507,988
The Notes on pages 11 to 18 form an integral part of these Condensed
Consolidated Financial Statements.
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 30 JUNE 2022
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 period - - - - (2,109,403) - (2,109,403)
Other comprehensive loss for
the year - - - - - 51,628 51,628
Total comprehensive loss
for the year - - - - (2,109,403) 51,628 (2,057,775)
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 30 June 2022 265,535 18,391,046 17,940,000 269,138 6,021,137 (36,736) 42,850,120
The Notes on pages 11 to 18 form an integral part of these Condensed
Consolidated Financial Statements.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 JUNE 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 period ended
30 June 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.
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 21 September 2023.
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.
During 2022 the Company's shares were admitted to trading on the London Stock
Exchange raising equity of £20 million. At 30 June 2023, the Group had cash
of £8.0 million (31 December 2022: £13.8 million).
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 by the end of the second quarter of 2024 in order to continue to
fund the Group's activities at their planned levels beyond this date. This
represents a material uncertainty that may cast significant doubt the Group's
ability to continue as a going concern. 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:
30 31
June December
2023 2022
£ £
Germany 7,607,921 6,824,224
Australia 24,843,979 22,133,076
32,451,900 28,957,300
5. Loss per Ordinary share
Period to Period to
30 30
June June
2023 2022
£ £
Loss for the period attributable to the ordinary
equity holders of the Company (£) (1,413,826) (2,109,403)
Basic loss per Ordinary share
Weighted average number of Ordinary shares
in issue 265,534,972 197,275,713
Basic loss per Ordinary share (pence) (0.53) (1.07)
Diluted loss per Ordinary share
Weighted average number of Ordinary shares
in issue 265,534,972 197,734,041
Diluted loss per Ordinary share (pence) (0.53) (1.07)
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 period:
No. of No. of No. of No. of
options options warrants warrants
at 30 at 31 at 30 at 31
June December June December
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 - - - -
Outstanding at the end of the period 10,060,000 10,060,000 5,668,000 5,668,000
Exercisable at the end of the period 10,060,000 10,060,000 5,668,000 5,668,000
Weighted average exercise price (pence) 30 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 six-month
period ended 30 June 2023 (period ended 30 June 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 six-month
period ended 30 June 2023 (period ended 30 June 2022: £173,766).
7. Intangible assets
Exploration
and
evaluation
assets
£
Cost
At 1 January 2021
Additions
Currency translation
At 31 December 2021
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 3,542,389
Government grant (129,730)
Currency translation (647,872)
At 30 June 2023 30,132,339
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 30 June 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 839,761 18,801 26,046 884,608
Currency translation (108,645) (8,400) (6,884) (123,929)
At 30 June 2023 2,091,096 161,445 169,384 2,421,925
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 - 21,950 11,775 33,725
Currency translation - (1,300) (1,559) (2,859)
At 30 June 2023 - 48,711 53,653 102,364
Net book value
At 30 June 2023 2,091,096 112,734 115,731 2,319,561
At 31 December 2022 1,359,980 122,983 106,785 1,589,748
9. Trade and other receivables
30 31
June December
2023 2022
£ £
Prepayments and other receivables 303,176 386,287
Recoverable value added taxes 126,113 422,424
429,289 808,711
10. Trade and other payables
30 31
June December
2023 2022
£ £
Trade payables 1,080,926 761,512
Accruals 260,864 949,004
Other payables 31,362 94,782
1,373,152 1,805,298
11. Related party transactions
Directors' remuneration and fees
The table below sets out the Directors' remuneration and fees:
Six months ended 30 June 2023 Share based
Fees payments Total
£ £ £
Mr T Buenger 143,460 - 143,460
Mr C Cannon Brookes* 17,500 - 17,500
Ms C Apthorpe 20,000 - 20,000
Mr S Cornelius 22,500 - 22,500
Mr I Hofmaier 22,500 - 22,500
Mr N Mather** 13,808 - 13,808
239,768 - 239,768
* 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)
Six months ended 30 June 2022 Share based
Fees payments Total
£ £ £
Mr T Buenger 124,112 374,347 498,459
Mr C Cannon Brookes* 11,750 - 11,750
Mr A M J Collette 3,000 33,275 36,275
Mr S L Fabian 6,000 8,319 14,319
Mr M E Thompson 3,000 83,188 86,188
Mr A J Truelove 23,573 83,188 106,761
Ms C Apthorpe 9,128 - 9,128
Mr S Cornelius 10,269 - 10,269
Mr I Hofmaier 10,269 - 10,269
201,101 582,317 783,418
* Fees relating to Mr C Cannon Brookes are paid to Arlington Group Asset
Management Limited.
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 period, Arlington
invoiced and was paid £25,000 in respect of advisory fees (six months ended
30 June 2022: £821,754 in respect of fund-raising commissions, advisory fees
and expenses). In the six months ended 30 June 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.
12. Share capital
30 31
June December
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.
DIRECTORS, SECRETARY AND ADVISERS
Directors C Cannon Brookes (Non-executive Chairman)
T Buenger (Chief Executive Officer)
C Apthorpe (Non-executive Director)
S Cornelius (Non-executive Director)
I Hofmaier (Non-executive Director)
N Mather (Non-executive Director)
Company Secretary R G J Ainger
Registered Office First Floor
47/48 Piccadilly
London, W1J 0DT
Independent Auditor Crowe U.K. LLP
55 Ludgate Hill
London, EC4M 7JW
Financial Advisor / Joint Broker Arlington Group Asset Management Limited
47/48 Piccadilly
London, W1J 0DT
Joint Broker WH Ireland Group plc
24 Martin Lane
London, EC4R 0DR
Financial Public Relations SEC Newgate UK Limited
14 Greville Street
London, EC1N 8SB
Legal Advisers to the Company Charles Russell Speechlys LLP
5 Fleet Place
London, EC4M 7RD
Registrars Share Registrars Limited
3 The Millenium Centre
Crosby Way
Farnham, GU9 7XX
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