REG - First Tin PLC - Interim Results
25/02/2025 07:00
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RNS Number : 2763Y First Tin PLC 25 February 2025
25 February 2025
First Tin PLC
("First Tin" or "the Company")
Interim Results
First Tin PLC, a tin development company with advanced, low capex projects in
Germany and Australia, today publishes its interim results for the six months
ended 31 December 2024.
Highlights
Financial:
· Successfully raised £10m during the period, ensuring a strong
financial position to support ongoing development.
· Ended the period with a cash position of £8.36m and a net asset
value of £45.23m.
· Posted a comprehensive loss of £2.01m.
Unlocking value at Taronga, Australia:
· Environmental permitting advanced, with the Environmental Impact
Statement (EIS) expected to be completed and submitted in late March/April
2025.
· Receipt of Environmental Assessment Requirements (SEARs), enabling
progression of statutory assessment studies.
· Successful trial blast completed in October, confirming technical
viability and potential operational cost savings.
· A 10,000m drilling programme announced to convert in-pit Inferred
resources to Indicated and Measured status, supporting potential mine life
expansion.
· Ongoing metallurgical testwork targeting improved recoveries and
optimisation of processing efficiencies, with promising results from coarse
gravity testwork.
· Application for two new Exploration Licenses near Taronga to further
consolidate the Company's position in the Emmaville tin district.
Advancement at Tellerhäuser and Gottesberg, Germany:
· Mining Authority approval process for Tellerhäuser continues to
progress.
· Product depot redesign completed, optimising operational efficiency
while maintaining eligibility for the "faster track" permitting process.
· Finalising updated Mineral Resource Estimate for Gottesberg,
leveraging historic drilling data.
· Continued exploration at Gottesberg and Dreiberg license areas,
assessing further resource potential.
Bill Scotting, Chief Executive Officer, commented: "First Tin has made
significant strides over the past six months, successfully advancing both our
Australian and German assets. The completion and submission of the Taronga EIS
will be a major milestone, bringing us closer to securing Developmental
Approval. Additionally, our ongoing metallurgical testwork and drilling
programme at Taronga aim to further enhance project economics and extend mine
life.
"We have also maintained momentum in Germany, with continued permitting
progress at Tellerhäuser and resource development work at Gottesberg. The
activities ongoing at both assets, combined with our strong financial
position, ensure that we remain well-placed to deliver on our objectives.
"The broader tin market dynamics continue to present significant
opportunities, with tin's role in the energy transition and digital
infrastructure becoming increasingly recognised. With our projects
strategically positioned in stable, low-risk jurisdictions, First Tin is
well-positioned to become a leading supplier of responsibly sourced tin."
Investor Presentation Reminder
Bill Scotting, CEO, and Tony Truelove, Technical Director, will provide a live
presentation for investors via the Investor Meet Company platform on Wednesday
5th March 2025 at 10:00am GMT.
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:
Via SEC Newgate below
Bill Scotting - Chief Executive Officer
Arlington Group Asset Management Limited (Financial Advisor and Joint Broker)
Simon Catt 020 7389 5016
Zeus Capital Limited (Joint Broker)
Harry Ansell / Dan Bristowe / Katy Mitchell 020 3829 5000
SEC Newgate (Financial Communications)
Elisabeth Cowell / Molly Gretton 07900 248 213
Notes to Editors
First Tin PLC 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 and North America have 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 PERIOD ENDED 31 DECEMBER 2024
I am pleased to report that the six months ending 31 December 2024 have been a
period of continued strong progress for First Tin, with key milestones
achieved that will enable us to unlock significant value in 2025 and beyond.
Importantly, our success in raising a combined £10m of equity (before
expenses) has provided us with the financial resources to drive our
development programme and advance our portfolio towards production.
While tin was the best performer amongst base metals in 2024, it was not
immune from the metals' price volatility over the 6 months period under
review. Macro-economic uncertainty saw tin prices briefly dip below
US$30,000 per tonne in late July before recovering to over US$34,000 per tonne
in early October. Post the US election, further macro-economic uncertainty
related to the Trump administration's proposed tariff policies and their
potential impact on global trade and economic growth weighed on metal markets
in general, with tin prices again declining through late October and November
before stabilising in the US$29,000-30,000 per tonne range for most of
December. Encouragingly, the tin price has strengthened again post-period
end, rising 3.4% in January 2025 and surpassing US$32,000 per tonne in
mid-February.
While challenging macro-economic conditions and geopolitical tensions
continue, the long-term demand outlook for tin remains robust. The global
clean energy transition and digital transformation continue to drive tin's
growing demand. As the "glue" that holds electronic equipment together, tin
is a critical technology metal found in a wide range of consumer and
industrial goods, including mobile phones and other communications devices,
solar panels, batteries, computers, and electric vehicles.
In contrast to the positive demand outlook, supply-side challenges and
constraints continue with global tin exchange stocks dropping from ca. 23,000
tonnes in June to under 12,000 tonnes currently. Indonesian refined tin
exports declined again in December, and 2024 shipments were reportedly down
33% year-on-year, while there remains no line of sight on the resumption of
tin mining in Wa State in Myanmar. More recently, the escalation of conflict
in the eastern Democratic Republic of Congo - a region that accounts for 7% of
global mined tin - has introduced additional risks to global supply chains.
In a geopolitically unstable world, with regulatory and consumer concerns over
conflict minerals, and Environmental, Social, and Governance ("ESG")
compliance, the need for ethical, reliable, and sustainable sources of tin has
never been more important. 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 and reliable supply of tin to support the
clean energy and digital revolutions.
A crucial enabler for our growth is financial strength. We were very pleased
to receive strong support from both new and existing shareholders for our
capital raises of £2.1m in July and £8m in November. The strong support
underscores the confidence in our strategic direction, our projects, and the
promising outlook for the tin sector. The funding is primarily allocated to
advancing our flagship Taronga project through final permitting, a targeted
drilling programme, and metallurgical testing work, all of which will unlock
the significant value enhancement opportunities identified at Taronga.
Additionally, the strategic investment by Metals X Limited in July marks a
major step forward. Metals X brings decades of tin mining and processing
expertise, together with a strong balance sheet, significantly de-risking our
development path. We look forward to working with them to advance our
attractive, low risk projects for the benefit of all our stakeholders.
Brett Smith, Executive Director of Metals X, and Peter Gunzburg, Chairman of
Metals X, joined the First Tin board as Non-Executive Directors, while Clara
Resources' Board representative, Nicholas Mather stepped down as a
Non-Executive Director, effective 11 July 2024. Catherine Apthorpe and Ingo
Hofmaier also stepped down as Non-Executive Directors on 30 September 2024. I
would like to thank Mr. Mather, Ms Apthorpe, and Mr. Hofmaier for their
valuable contributions to the Board through the formative period for the
Company since our 2022 IPO.
During the period under review, the management team continued to focus on
advancing the assets through their environmental studies and permitting. At
our Taronga asset, a key permitting milestone was reached in August 2024 with
the submission of the Scoping Report, followed by receipt of the New South
Wales Planning Secretary's
Environmental Assessment Requirements (SEARs) in September. This has enabled
work to progress on the Environmental Impact Statement ("EIS"), a fundamental
step towards securing final approvals for development.
In parallel with the permitting work, the team at Taronga has continued to
identify and develop value-enhancement opportunities. We published the results
of mineral processing test work that suggest higher tin recoveries than
previously used in the Definitive Feasibility Study ("DFS") are possible.
Further work to improve recoveries is underway. In November, we reported the
results of a successful trial blast, which reinforced the project's technical
viability. In December, we published a drilling programme for Taronga aimed at
increasing the resource base and converting Inferred resources to Indicated
and Measured status that should translate to additional ore reserves and a
longer mine life.
In Germany, following the publication in April of the 35% expansion in the
Mineral Resource Estimate (MRE) of our Tellerhäuser asset, we have commenced
a similar approach to reviewing and assessing the historical data for our
nearby satellite deposits of Gottesberg and Auersberg. Other activity in
Germany has focused on essential permitting related work.
The programme for 2025 is well established. We especially look forward to the
finalisation of the Taronga EIS, and the environmental permitting and mining
approval process, while our drilling programme and metallurgical testing work
should bring additional value to the project. In Germany, we will continue to
focus on essential permitting work and the MRE update for Gottesberg.
First Tin's projects in Australia and Germany offer sustainable, reliable and
compliant tin to meet the growing demand for this critical metal. We look
forward to confirming the substantial upside potential in our Taronga asset,
which we believe is well-positioned to be the world's next new tin mine. With
our portfolio of assets, First Tin is poised to capitalise on the
opportunities presented by the digital transformation and global energy
transition.
I would like to thank all our dedicated team for their continued hard work,
and our supportive shareholders and stakeholders for their continued trust and
collaboration as we drive forward to deliver on our vision to be a significant
global tin supplier.
C Cannon Brookes
Chairman
CHIEF EXECUTIVE OFFICER'S REPORT
FOR THE PERIOD ENDED 31 DECEMBER 2024
Tin is a critical metal to the clean energy transition and digital
transformation, yet its supply chain remains extremely vulnerable. In an
increasingly volatile world, traceable and verifiable tin sourced from secure
locations such as First Tin's projects in Australia and Germany is a
sustainable solution to the tin supply issues facing industrial consumers.
Against this highly supportive context, I am therefore pleased to report that
during the six months to 31 December 2024, First Tin continued to advance our
Australian and German projects, maintaining progress toward our goal of
becoming a significant, sustainable, and reliable tin supplier. Our primary
focus has been on unlocking value at both our assets by advancing
environmental permitting, optimising project economics, and strengthening our
development path.
Tin, a critical metal for the future
Tin is a critical, yet often overlooked, clean energy metal. Demand for tin is
increasing as it is fundamental for modern technology, especially for the
clean energy transition and the digital transformation - every electrical
connection needs solder that is predominantly composed of tin. However, the
supply chain for tin is stagnating and is extremely vulnerable to disruption.
Currently, over 90% of global tin supply is produced from emerging and
developing economies, prone to conflict and supply disruptions. Due to
depletion of resources, conflict and disruption, supply has not grown over the
past 20 years, resulting in very low global inventories. As demand growth is
outstripping supply, a significant supply deficit is forecast.
Australia is the only significant producer of tin in concentrate in the
OECD. The USA, Japan, Germany and South Korea, the four largest consumers of
refined tin after China, have no tin mines and are reliant on imports for
their advanced manufacturing sectors.
Over the reporting period we continued to see disruptions to tin supply.
Refined tin exports from Indonesia, the largest exporter, fell back again in
December, leaving 2024 exports 33% down year-on-year. Ongoing Indonesian
regulatory changes continue to create uncertainty for export license
approvals. Similarly, the ban on mining in Wa State in Myanmar remains in
place, with Chinese imports from Myanmar reportedly halving during 2024 and in
December reaching their lowest point since the ban came into place.
The reduction in Chinese imports from Myanmar was offset by higher imports
from the DRC following the Bisie expansion, however, the recent and ongoing
escalation of conflict in the region, with insurgents gaining control of key
cities has raised concerns for supply disruptions from this region.
From a peak of over US$34,000 per tonne in early October, tin prices dropped
back to a range of US$29,000-30,000 per tonne over most of December. Despite
macro-economic uncertainty, primarily related to the potential impact of the
new Trump administration's tariff and trade policies, underlying demand
drivers for tin remained positive. The electronics sector continues to grow
with record global semiconductor sales in 2024 and Q4 sales up 17%
year-on-year, and China's electronic manufacturing sector, PV capacity and NEV
sales and production growing in 2024 1 .
With demand growing and low inventories, tin prices have increased post-period
end, moving above US$32,000 per tonne in February. While supply side
developments, sentiment and impact of evolving tariff policies will continue
to drive tin prices in the short-term, the longer-term structural need for new
tin supply remains. We are confident that First Tin is well positioned to
benefit from this opportunity to become a material tin supplier from its
conflict-free and low political risk jurisdictions of Australia and Germany.
Unlocking value at our Taronga Asset in Australia
The period under review has been highly productive at Taronga as we drive
forward following the publication of the Definitive Feasibility Study ("DFS")
last May. Focus has been on advancing the project through the environmental
permitting process, while in parallel working to confirm the significant value
enhancement opportunities identified.
In August, the formal commencement of the New South Wales permitting process
for the Taronga Project as a State Significant Development began, with the
Scoping Report for the project being lodged with a request to the New South
Wales Planning Secretary for Environmental Assessment Requirements ("SEARs")
for the project. The Scoping Report outlined the key components of the
Taronga project including the layout, infrastructure placement, personnel
requirements, proposed transport routes etc. and is used by various NSW
Government departments and regulatory agencies to specify the range of
assessment requirements for inclusion in Taronga's Environmental Impact
Statement ("EIS").
The essential SEARs notification, which informs what specialist studies to
finalise for inclusion in our EIS, was received in September, enabling work on
the EIS to be progressed. Although many of the statutory EIS assessment
requirements were substantially advanced, including extensive surveys for
Aboriginal cultural heritage, flora and fauna, additional studies related to
the anticipated disturbance footprint for the proposed mine camp and access
road have been undertaken. We now expect the EIS to be completed and submitted
in late March/April 2025. A successful outcome will be a major milestone
for this project, unlocking significant value for the Company, and we are
pleased with the progress currently being made
Mineral testing work continued, targeting improved recoveries above what was
used in the DFS. In August we announced higher recovery results from coarse
gravity testwork on a higher grade sample. These encouraging results
confirmed the upgrading and concentration potential of the Taronga
mineralisation through our simple, low capex and low cost gravity flowsheet.
We continue to do further testwork on the crushing circuit, the results of
which will be announced upon completion.
In October a successful trial blast was completed, which has reinforced the
technical viability of the project. The drilling showed excellent
penetration rates assisted by the vertical nature of the fracture sets, with
221.5m completed within 6 hours. Powder factors of 0.3, 0.5 and 0.8 were
trialled based on 0.8 SG ANFO (Ammonium Nitrate Fuel Oil), with all showing
excellent breakage to sizes less than 400mm. The results confirmed the
powder factors used in the DFS, with the consultants suggesting the trial of a
lower factor once mining has commenced, which could result in operational cost
savings.
Monitoring of the blast also confirmed acceptable vibration and noise from the
trial, demonstrating our commitment to safety and minimal community impact.
This data has been modelled as part of the EIS requirements. The blasted
rock also provided an opportunity to collect another bulk sample for our
continuing metallurgical testwork programme, with samples more closely
representing the actual run of mine blasted material.
The DFS noted that there were approximately 3.6Mt of Inferred resource located
within the current pit designs that is not currently included in the economic
analysis. A review of the block model and geology shows that some of this
Inferred mineralisation is related to a poorly defined lode structure located
close to the northwestern pit walls in both the north and south pits. If this
lode structure can be shown to be continuous and mineralised, it could add
significant additional resources that may allow the northwestern walls to be
pushed back and the pits deepened. As a result, in December, we announced a
10,000m drilling programme to be undertaken in 2025 to convert the in-pit
Inferred resource to Indicated and Measured status, which should translate to
additional ore reserves and ultimately a longer life of mine.
The drilling programme will also cover several other potential lode
structures, both within and external to the current pit design that are also
interpreted based on soil sampling and/or very broad spaced drill intercepts.
These targets could also add additional resources, significantly increasing
the project's mine life.
Taronga is a large-scale deposit with 138,000 tonnes of contained tin.
Exploration work at our nearby satellite deposits has confirmed our thesis
that it lies at the centre of a broader tin district offering longer term
development potential. To further consolidate our exploration efforts in the
district, in November we announced that we had applied for two new Exploration
Licenses near Taronga. These licenses bring the Company's total area under
tenure in the Emmaville district to ca., 752km(2) and will facilitate the
exploration of adjacent areas. These satellite tenements support our Hub and
Spoke strategy, with Taronga envisioned as a future central processing
facility.
Moving forward at Tellerhäuser and Gottesberg, Germany
Similarly to Taronga, our Tellerhäuser project in the historic tin district
of Saxony in Germany, benefits from existing infrastructure that reduces risk
and anticipated capital expenditure.
During the period under review a redesign of the product depot was finalised.
This reduced the gradient of the ramp to 14% from the previous 25-30%. The
capacity of the depot was increased by approximately 100,000m³ with an
increase of 1ha to the site surface footprint. Importantly, we remain below
the 10ha threshold required for the "faster track" construction and operating
permit process.
Following the successful and low cost use of historic drilling data that
enabled an increase to the Tellerhäuser Mineral Resource Estimate ("MRE"),
the team commenced a similar review of historic drilling data pertaining to
the Gottesberg and Auersberg deposits. The Gottesberg area was explored for
uranium from the 1940s to 1980s, when a State-funded underground diamond
drilling programmes found tin mineralisation, but work was suspended in the
1990s. Further surface diamond drilling in 2011 confirmed tin
mineralisation. The Auersberg license contains numerous historical tin
workings, but limited exploration has been undertaken except for some drilling
by Wismut at three targets.
Work also continued during the period under review on the baseline study for
power requirements underground as well as on the surface.
Finance Review
The interim results for the period reflect continued investment by the Company
in progressing its two flagship assets. First Tin posted a comprehensive
loss for the period of £2.01m and ended the period with a cash balance of
£8.36m and a net asset value of £45.23m. Expenditure during the period was
primarily focused on progressing the EIS and DFS-enhancement opportunities at
Taronga, and in Germany on progressing permitting and desk-top archive work
for the Gottesberg MRE. It is anticipated that the Group has sufficient
working capital to roll out its work programme for the next twelve months.
Outlook
As noted in the Chairman's report, the Company successfully raised £10m of
equity during the period under review. This means we are in a strong
financial position to deliver our planned developmental and value enhancement
programme through 2025, which is focused on:
· Completion and submission of the Taronga EIS and obtaining
Developmental Approval.
· Optimisation and enhancement of the value of the Taronga DFS from:
o Additional metallurgical testing work to improve recoveries.
o Undertaking extension and infill drilling and conversion of Inferred
resources to increase the mine life.
· Fieldwork to progress satellite options near Taronga.
· Evaluating project financing options to advance Taronga through
engineering design and into construction.
· Finalisation of the MRE update for Gottesberg.
· Progressing Mining Authority approval for Tellerhäuser.
· Exploration around Gottesberg and Dreiberg licenses.
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 way as one of the largest and most advanced tin projects in the
market, boasting a mineralogy conducive to easy, cost-effective mining and
processing, we can look forward with confidence.
I would like to thank all our shareholders and other stakeholders for your
ongoing support as we pursue our strategic objective to become a reliable and
sustainable global producer of fully traceable and verifiable tin. Significant
progress has been made over the recent period, we have entered 2025 with
confidence and I look forward to updating you on further progress.
W A Scotting
Chief Executive Officer
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 31 DECEMBER 2024
Note Period to Period to
31 31
December December
2024 2023
(Unaudited) (Unaudited)
£ £
Administrative expenses (944,625) (892,806)
Share based payments (non-cash) 6 - -
Operating loss (944,625) (892,806)
Finance income 35,538 51,218
Finance costs (792) -
Loss before tax (909,879) (841,588)
Income tax expense - -
Loss for the period (909,879) (841,588)
Other comprehensive (loss)/income
Exchange differences on translation of foreign
operations (1,098,084) 300,491
Other comprehensive (loss)/income for the
period (1,098,084) 300,491
Total comprehensive loss for the period (2,007,963) (541,097)
Total comprehensive loss attributable to
the equity holders of the company (2,007,963) (541,097)
Basic loss - pence per share 5 (0.27) (0.32)
Diluted loss - pence per share 5 (0.27) (0.32)
The Notes on pages 12 to 20 form an integral part of these Condensed
Consolidated Financial Statements.
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2024
Note 31 30
December June
2024 2024
(Unaudited) (Audited)
£ £
Non-current assets
Intangible assets 7 35,327,871 34,968,675
Property, plant and equipment 8 2,332,677 2,433,830
37,660,548 37,402,505
Current assets
Trade and other receivables 9 246,024 290,000
Cash and cash equivalents 8,363,384 1,345,629
8,609,408 1,635,629
Current liabilities
Trade and other payables 10 (1,038,789) (1,153,178)
Net current assets 7,570,619 482,451
Total assets less current liabilities 45,231,167 37,884,956
Net assets 45,231,167 37,884,956
Capital and reserves
Called up share capital 12 451,868 265,535
Share premium account 27,558,887 18,391,046
Merger relief reserve 17,940,000 17,940,000
Warrant reserve 269,138 269,138
Retained earnings 944,660 1,854,539
Translation reserve (1,933,386) (835,302)
Shareholders' funds 45,231,167 37,884,956
The Condensed Consolidated Financial Statements were approved and authorised
for issue by the Board of Directors on 24 February 2025 and were signed on its
behalf by:
C Cannon Brookes
Director
The Notes on pages 12 to 20 form an integral part of these Condensed
Consolidated Financial Statements.
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 31 DECEMBER 2024
Period to Period to
31 31
December December
2024 2023
(Unaudited) (Unaudited)
£ £
Cash flows from operating activities
Operating loss for the period (944,625) (892,806)
Adjustments to reconcile loss before tax to net cash flows:
Depreciation of tangible assets 21,829 20,540
Loss on disposal of tangible assets - 18,009
Decrease in trade and other receivables 43,976 150,364
(Decrease)/increase in trade and other payables (114,389) 155,330
Cash used in operations (993,209) (548,563)
Interest paid (792) -
Net cash flows used in operating activities (994,001) (548,563)
Cash flows from investing activities
Purchase of intangible assets (1,306,935) (2,813,651)
Receipt of government grants - 88,482
Purchase of property, plant and equipment (74,993) (140,051)
Interest received 35,538 51,218
Net cash flows generated from/(used in) investing activities (1,346,390) (2,814,002)
Cash flows from financing activities
Issuance of shares (net of issuance costs) 9,354,174 -
Net cash flows generated from financing activities 9,354,174 -
Net increase/(decrease) in cash 7,013,783 (3,362,565)
Cash and cash equivalents at beginning of period 1,345,629 7,999,951
Exchange loss on cash and cash equivalents 3,972 19,640
Cash at the end of period 8,363,384 4,657,026
The Notes on pages 12 to 20 form an integral part of these Condensed
Consolidated Financial Statements.
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 DECEMBER 2024
Merger
Share Share relief Warrant Retained Translation Total
capital premium reserve reserve earnings reserve equity
£ £ £ £ £ £ £
At 1 July 2024 265,535 18,391,046 17,940,000 269,138 1,854,539 (835,302) 37,884,956
Loss for the period - - - - (909,879) - (909,879)
Other comprehensive loss for
the year - - - - - (1,098,084) (1,098,084)
Total comprehensive loss - - - - (909,879) (1,098,084) (2,007,963)
for the year
Transactions with owners:
Issuance of shares (net of
issuance costs) 186,333 9,167,841 - - - - 9,354,174
Total transactions with
owners 186,333 9,167,841 - - - - 9,354,174
At 31 December 2024 451,868 27,558,887 17,940,000 269,138 944,660 (1,933,386) 45,231,167
The Notes on pages 12 to 20 form an integral part of these Condensed
Consolidated Financial Statements.
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 DECEMBER 2023
Merger
Share Share relief Warrant Retained Translation Total
capital premium reserve reserve earnings reserve equity
£ £ £ £ £ £ £
At 1 July 2023 265,535 18,391,046 17,940,000 269,138 3,473,768 (831,499) 39,507,988
Loss for the period - - - - (841,588) - (841,588)
Other comprehensive income for
the year - - - - - 300,491 300,491
Total comprehensive loss - - - - (841,588) 300,491 (541,097)
for the year
At 31 December 2023 265,535 18,391,046 17,940,000 269,138 2,632,180 (531,008) 38,966.891
The Notes on pages 12 to 20 form an integral part of these Condensed
Consolidated Financial Statements.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2024
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
31 December 2024 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 period ended 30 June
2024. 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 period ended 30 June 2024.
Statutory accounts for the period ended 30 June 2024 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 24 February 2025.
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.
On 10 July 2024 the Company raised £2.1 million (before expenses) by way of a
placing of 53,000,000 new ordinary shares at a price of 4 pence per share.
On 28 October 2024, the Company raised £8 million (before expenses) by way of
a placing of 133,333,334 ordinary shares at 6 pence per share.
As of 31 December 2024 the Group had cash balances of £8,363,384. This will
provide sufficient working capital for 12 months from the date of signing of
these financial statements, based on financial projections prepared by the
Directors.
Accordingly, these financial statements have been prepared on the going
concern basis and 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 period ended 30 June 2024.
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:
31 30
December June
2024 2024
£ £
Germany 8,751,721 8,847,849
Australia 28,908,827 28,554,656
37,660,548 37,402,505
5. Loss per Ordinary share
Period to Period to
31 31
December December
2024 2023
£ £
Loss for the period attributable to the ordinary
equity holders of the Company (£) (909,879) (841,588)
Basic loss per Ordinary share
Weighted average number of Ordinary shares 340,040,407 265,534,972
in issue
Basic loss per Ordinary share (pence) (0.27) (0.32)
Diluted loss per Ordinary share
Weighted average number of Ordinary shares 340,040,407 265,534,972
in issue
Diluted loss per Ordinary share (pence) (0.27) (0.32)
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 31 at 31 at 31 at 31
December December December December
2024 2023 2024 2023
£ £ £ £
Outstanding at beginning of period 8,500,000 10,060,000 - 5,668,000
Granted during the period - - - -
Expired during the period - (1,560,000) - -
Outstanding at the end of the period 8,500,000 8,500,000 - 5,668,000
Exercisable at the end of the period 8,500,000 8,500,000 - 5,668,000
Weighted average exercise price (pence) 33 33 - 26
7. Intangible assets
Exploration
and
evaluation
assets
£
Cost
At 1 January 2023 27,367,552
Additions 8,536,853
Government grants (256,965)
Currency translation (678,765)
At 30 June 2024 34,968,675
Additions 1,306,935
Currency translation (947,739)
At 31 December 2024 35,327,871
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 2024, 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 2023 1,359,980 151,044 150,222 1,661,246
Additions 847,609 18,801 169,203 1,035,613
Disposals - (30,755) (7,967) (38,722)
Currency translation (92,238) (7,844) (2,860) (102,942)
At 30 June 2024 2,115,351 131,246 308,598 2,555,195
Additions - - 74,993 74,993
Currency translation (133,542) (7,137) (17,716) (158,395)
At 31 December 2024 1,981,809 124,109 365,875 2,471,793
Depreciation
At 1 January 2023
Charge for period - 18,813 55,398 74,211
Disposal - (15,277) (5,436) (20,713)
Currency translation - (991) (2,640) (3,631)
At 30 June 2024 - 30,606 90,759 121,365
Charge for period - 5,443 16,386 21,829
Currency translation - (1,025) (3,053) (4,078)
At 31 December 2024 - 35,024 104,092 139,116
Net book value
At 31 December 2024 1,981,809 89,085 261,783 2,332,677
At 30 June 2024 2,115,351 100,640 217,839 2,433,830
9. Trade and other receivables
31 31
December December
2024 2023
£ £
Prepayments and other receivables 137,967 149,423
Recoverable value added taxes 108,057 129,502
246,024 278,925
10. Trade and other payables
31 31
December December
2024 2023
£ £
Trade payables 610,569 945,903
Accruals 203,920 495,046
Other payables 224,300 87,533
1,038,789 1,528,482
11. Related party transactions
Directors' remuneration and fees
The table below sets out the Directors' remuneration and fees:
Six months ended 31 December 2024 Share based
Fees payments Total
£ £ £
Mr W A Scotting 79,167 - 79,167
Mr C Cannon Brookes* 17,500 - 17,500
Mr R G J Ainger 22,500 - 22,500
Mr B R Smith (appointed 11 July 2024) 11,315 - 11,315
Mr P L Gunzburg (appointed 11 July 2024) 11,315 - 11,315
Ms C Apthorpe (resigned 30 September 2024) 13,333 - 13,333
Mr I Hofmaier (resigned 30 September 2024) 15,000 - 15,000
Mr N Mather** (resigned 11 July 2024) - - -
170,130 - 170,130
* 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 31 December 2023 Share based
Fees payments Total
£ £ £
Mr T Buenger (resigned 31 December 2023) 139,790 - 139,790
Mr W A Scotting* (appointed 1 January 2024) 18,000 - 18,000
Mr C Cannon Brookes** 17,500 - 17,500
Ms C Apthorpe 20,000 - 20,000
Mr S Cornelius (resigned 6 September 2023) 7,500 - 7,500
Mr I Hofmaier 22,500 - 22,500
Mr N Mather*** 13,328 - 13,328
Mr R G J Ainger (appointed 6 September 2023) 14,464 - 14,464
253,082 - 253,082
* 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.
Other fees and transactions
Mr C Cannon Brookes was a director of Arlington Group Asset Management Limited
("Arlington") for the reporting period. During the period, the Company
incurred costs of £508,375 from Arlington in respect of fund-raising
commissions and expenses, financial advisory and director's fees (2023:
£42,500 in respect of financial advisory fees and director's fees).
Mr R. G. J. Ainger was a director of RFA Consulting Limited ("RFA") during the
reporting period. During the period the Company incurred costs of £37,000
from RFA in respect of financial advisory fees and company secretarial
services (2023: £18,000 in respect of company secretarial services).
12. Share capital
31 30
December June
2024 2024
£ £
Allotted, called up and fully paid
451,868,306 (2023: 265,534,972) Ordinary shares of £0.001 each 451,868 265,535
On 1 August 2024 the Company issued 53,000,000 Ordinary shares of £0.001 each
at a value of 4 pence per share. Total costs of £202,770 were incurred and
were offset against share premium.
On 20 November 2024 the Company issued a further 133,333,334 Ordinary shares
of £0.001 each at a value of 6 pence per share. Total costs of £563,056 were
incurred and were offset against share premium.
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.
1 Sources: Semiconductor Industry Association, 7 February 2025; ITA Tin
Market Update, February 2025; China's solar wind power installations soared to
record in 2024, Reuters, 21 January 2025; China's NEV production, sales
surpass 12m each, leading globally in 2024, Global Times, 13 January 2025
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