REG - Galileo Resources - Half-year Report
30/12/2024 15:45
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RNS Number : 6443R Galileo Resources PLC 30 December 2024
30 December 2024
Galileo Resources PLC
("Galileo" or "the Company" or "the Group")
Unaudited interim results for the six months ended 30 September 2024
Galileo (AIM: GLR), the exploration and development mining company, announces
its unaudited interim results for the six-month period ended 30 September
2024. A copy of the interim results is available on the Company's website,
www.galileoresources.com (http://www.galileoresources.com) .
Financial Highlights
The Group reported profit of £2,172,112 (2023: loss of £521,764) after
taxation. The profit reported during the period was generated by the sale of
the Company's interest in Glenover as described in detail in Note 9.
Profit/(Loss) per share reported is 0.19 pence (2023: loss of 0.05 pence) per
share. Profit/(Loss) per share is based on a weighted average number of
ordinary shares in issue of 1,163,188,453 (2023: 1,160,943,355).
Operational Highlights
ZAMBIA
Luansobe Copper Project
The Company holds a 75% interest in the Luansobe project. The Luansobe area is
situated some 15km to the northwest of Mufulira Mine in the Zambian Copperbelt
which produced well over 9 million tonnes ("Mt") of copper metal during its
operation. It forms part of the north-western limb of the northwest -
southeast trending Mufulira syncline and is essentially a strike continuation
of Mufulira, with copper mineralisation hosted in the same stratigraphic
horizons. At the Luansobe prospect mineralisation occurs in at least two
horizons, dipping at 20-30 degrees to the northeast, over a strike length of
about 3km and to a vertical depth of at least 1,250m.
Period Under Review
· A small-scale mining licence ("SML") was awarded to the company's
Joint Venture partner, Statunga Investments Limited ('Statunga'), for a period
of ten years from 24 April 2024, allowing the Company to progress open pit
mine feasibility and development at the Luansobe Inferred Mineral Resource
· The licence No. 34543-HQ-SML covers an area of 354 hectares over the
JORC (2012) compliant Inferred Mineral Resource reported on the 9 February
2023, which details approximately 5.8Mt gross at 1% total Cu above a cut-off
grade of 0.25% total Cu for 56,000 tonnes of contained Cu, potentially
amenable to open pit mining, with further resources extending underground
· Mine optimisation studies have continued, involving the engagement of
independent consultants Sound Engineering Solutions who have completed
considerable work regarding planning of a mining schedule and consideration of
mine optimisation studies, reported post year-end
· Variable outcomes are achievable via open pit sensitivity analysis
and the consideration of a multi-faceted operation with the option for
multi-party development and processing of the resource
· Significant interest in the project is being realised from
independent parties and the Company continues to work via its independent
consultant to develop the most optimal mine plan that will deliver the
strongest returns for shareholders
Post Period Under Review
· In addition to the previous SML awarded to Statunga covering the
open-pit mineral resource over part of the former Luansobe exploration
licence, on the 25 October 2024, it was announced that a second SML had been
awarded to Statunga, to include the potential underground mineral resource and
exploration target
· The new small-scale mining licence 34545-HQ-SML covers an area of 384
hectares and has been granted from 4th August 2024 for a period of ten years
for mining of copper and other base and precious metals
· The new mining licence covers an area in which Galileo previously
reported a JORC 2012 compliant Inferred Mineral Resource of approximately
6.3Mt gross at 1.5% total Cu above a cut-off grade of 1% total Cu for 97,000
tonnes of contained Cu, potentially amenable to underground mining
· Additional prospectivity within the new SML includes an exploration
target identified by historic drilling that has the potential to expand the
underground mineral resource. Approximately 3 to 7Mt of ore was identified
between depths of 100 to 300m, which returned copper grades in the region of
1% to 1.5% total Cu, the exploration target is conceptual in nature and may
not be realised
· Much deeper potential also remains on the licence, sparse historical
drilling indicates that a deeper target may be present with mineralisation
potentially extending up to a depth of 1,250m
· The Company intends to test both deeper exploration targets. For a
full summary of the updated mineral resource please refer to RNS dated 09
February 2023.
Shinganda Copper-Gold Project
Galileo holds a 51% interest in the Shinganda copper-gold project which is
prospective for Iron Oxide Copper Gold (IOCG) mineralisation and boasts a
complex structural framework in which at least three styles of mineralisation
have been identified. The project area covers part of a major 10km structural
trend which hosts two previously developed small-scale open pit copper-gold
mines. Two major structural trends dominate the licence area, the Shinganda
Main Fault and the Shinganda Fault Splay. Copper-gold mineralisation is
primarily associated with the latter which acts as a potential feeder conduit
for the mineralisation. The focus for the project is defining a shallow,
supergene enriched open-pittable mineral resource.
Period Under Review
· A Phase Three drilling programme that was designed to test at least
8km strike extension of the Shinganda Splay and Main Fault Zone for
potentially open pittable supergene enriched copper mineralisation was
completed during the reporting period
· A total of 30 Reverse Circulation ("RC") drill holes were completed,
for 2,213 metres of drilling in six fences of short angled holes, typically
drilled to a downhole depth of 80 metres
· Based on visual inspection, intercepts of the targeted supergene
enrichment zone, representing the most likely setting for the highest copper
and gold grades were seen at the base of several drillholes
· Samples from the RC drilling have been prepared for dispatch and
based on visual inspections of RC chips, a decision was made to immediately
follow with a 4th phase of drilling aiming to repeat the good visual
intercepts with diamond drilling and therefore ensure maximum recovery of core
in this enriched zone and a more accurate assessment of grade and geological
structure than that offered by RC drilling
Post Period Under Review
The completion of three diamond drillholes for a total of 310m of drilling
have so far been reported at the time of writing. The holes have specifically
targeted the supergene enriched zone intersected in the RC drilling and have
returned both iron-rich oxide and copper sulphide mineralisation, consistent
with the IOCG-deposit model. Visual widths of mineralisation have been
reported in all three holes drilled to date, including a mineralised width of
up to 47.5m in drillhole SHDD024. Progress towards laboratory analysis is
being expedited.
Kashitu Zinc Project
Period under review
Kashitu is situated 7km south-east from the historical Kabwe Pb-Zn mine and
processing plant. The project is underlain by Neo-Proterozoic carbonate units
of the Katanga Supergroup which form a west-northwest plunging synform and
hosts prospective north-east trending structures that are thought to control
the development of the Kabwe-style massive sulphide ore bodies. Disseminated
and vein-type Pb-Zn-Ag mineralisation is found throughout the licence, with
further supergene mineral enrichments identified at the shallow karstic
interface.
A small-scale exploration licence encompassing the core of the Kashitu project
area was issued on 23 February 2022 and is valid for a period of four years
from the issue date.
Period Under Review
· The Company is progressing plans to co-operatively develop a
small-scale mining operation capable of extracting shallow supergene enriched
ore to a depth of 1-3m
· To this effect, stakeholder engagement and communication with local
residents and artisanal miners has continued throughout the reporting period
· Additionally, the company has continued through further exploration
to evaluate the development potential of a high-grade, lenticular willemite
body present in the Kashitu area which was the subject of historical shallow
mining
· The Company recognises that wholesale removal of access to parts of
the Kashitu licence for small-scale and artisanal miners could have a profound
impact on livelihoods hence the proposal to enter an arrangement that benefits
all parties. Navigating the expectations of the various parties is challenging
and the Company's representatives will continue to build a business plan. Once
priority locations have been identified, further shallow drilling on a
close-spaced grid for grade control purposes will take place
Western Foreland Copper Project
The Western Foreland project comprises licence 28001-HQ-LEL and is located in
Northwestern Zambia at the Angolan-Zambian border and sits adjacent to the
Central African Copper Belt, where significant potential exists for the
discovery of sediment hosted copper deposits akin to the nearby Kamoa-Kakula
complex. There has been limited historical exploration completed in the
licence area, and the region is currently under international spotlight as
considerable activity and competition from the world's top tier mining
companies who continue to make new discoveries.
Period Under Review
· Preliminary work by Galileo focused on interpretation of publicly
available data accessible in the region and scrutiny of this data in
comparison to Kamoa-Kakula style exploration models
· On the 8 August 2024 the Company announced that diamond core
drilling had commenced on the licence, with an initial 700m of planned
drilling designed to test lithological contacts thought prospective to host
sedimentary hosted copper mineralisation. The drilling will target prospective
REDOX fronts where suitable combinations of adjoining lithology have
potentially created the correct environment for copper deposition
· Significant work has been completed on the licence to prepare it for
drill readiness, including reconnaissance surface geochemical work and the
reparation of roads and bridges to provide safe access for drilling equipment
· The Company's partner, Cooperlemon Consultancy, has facilitated all
necessary permits and approvals and establishment of contracts with local
chiefdoms
· Drilling is progressing well with preliminary results expected soon
ZIMBABWE
Galileo has a 51% interest in the highly prospective Kamativi and Bulawayo
projects, collectively known as the Sinamatella licences, which are under
Joint Venture agreement with BC Ventures. The Kamativi Lithium
(Sn-Ca-Ta-REE-Cu) project neighbours a belt of historic tin-pegmatite mines
and is receiving renewed international interest owing to its lithium bearing
pegmatite potential. Its sister project, Bulawayo is located in south-central
Zimbabwe and is home to many historic gold mines. The licences have received
little exploration within the past 25 years and to date Galileo has completed
licence wide soil sampling and geophysical surveys which have identified
several high-priority Au-Ni targets. The Company is currently awaiting the
granting of extensions to the three exploration licences covering both
projects.
Kamativi Lithium Project
The Kamativi Lithium Project comprises EPO 1782, covering 520km², and lies on
the Kamativi Belt directly adjacent to, and along strike from the historic
Kamativi tin-tantalum mine which operated from 1936 to 1994. The Kamativi Mine
produced 37,000 tonnes of tin and 3,000 tonnes of tantalum ore from
pegmatites, and in 2018 Chimata Gold Corp (Zimbabwe Lithium Company) announced
a new JORC (2012) compliant Indicated Mineral Resource of 26Mt @ 0.58% Li2O
within the Kamativi mine tailings, confirming that the mine contained
significant quantities of lithium. The mine has recently been brought back
into production for hardrock lithium by its current Chinese owners.
The Sinamatella licence area encloses extensions and splays of the Kamativi
Tin Mine host unit, including mapped pegmatites, and it has been reported that
there are old tin-fluorite workings within the Sinamatella property. The
licence area also contains a large extent of the pre-Cambrian Malaputese
Formation which is considered to be strongly prospective for VMS hosted
copper, surrounding the old Gwaii River Copper Mine and including numerous
other copper prospects and occurrences.
Period Under Review
· Following on from the previously reported positive results of the
Phase One drilling campaign at Kamativi, work has focussed on desk-based
studies and data analysis to enable an informed second phase of drilling, with
an emphasis on identifying prospective, later-stage, discordant pegmatites
· The Phase One drilling was designed to test a substantial 3km long
Li-Cs-Ta in soil anomaly at the Kasiloma prospect and the first hole drilled,
KSDD001, intersected a shallow, 18m wide, zoned pegmatite, returning an
average grade of 0.38% Li2O from 35m downhole depth, with a mineralised core
of 4m at 1% Li2O
· Drillhole KSDD010, drilled beneath KSDD001, intersected a 41m wide
zone of stacked pegmatites from 140m depth, returning an overall average grade
of 0.17% Li2O from 141m depth
· Considerable strike length of the 3km long soil anomaly remains to be
tested by continued surface works and a second phase of drilling, and several
discordant pegmatites have been identified within the soil anomaly that
require further testing
· Several targets warranting follow-up work have been identified across
the wider licence, with prospective discordant pegmatites displaying an
elevated Li-Cs-Ta-Sn-REE signature identified at Paolo, Gawaii River Crossing
and Eastern target. Large areas of the licence remain underexplored, and a
further substantial REE target remains untested in the north of the licence.
All of these areas require follow-up mapping and surface sampling
· The Company is also testing the southern part of the licence for
VMS-type copper mineralisation
Bulawayo Gold-Nickel-Copper Project
The Bulawayo Project comprises EPOs 1783 and 1784, covering a large 1,300km²
licence area near Bulawayo with extensive Greenstone Belt rock formations.
Prospective areas with thin sand/alluvial/Karoo basalt cover have never been
explored and preliminary grab sampling on the property reported assays ranging
from 3.9-16g/t Au, confirming the prospectivity of the ground.
Substantial prospective greenstone belt terrane exists in the licence area,
and the aim is to explore for a resource to support the development of a large
scale mine. The licences adjoin and enclose several small-scale gold mines on
pre-existing mining permits which provides the opportunity to integrate the
production from these operations which have a total historic production
reported as more than 1Moz Au.
Period Under Review
· Desk based studies and data analysis has continued with the intention
of progressing the licence to drill readiness by the next drilling season
· Work has concentrated on targets surrounding the Queen's Mine Area
where previously reported surface soil geochemical and geophysical surveys
defined multiple new targets adjacent to, and along-strike from structures
associated with already identified mineralisation, several of which are under
shallow alluvial and Karoo sandstone cover, made visible by the previous
airborne magnetic survey flown by Galileo in June 2022
· New targets represent extensions of known gold-bearing structures
that typically host both commercial and small-scale gold mining operations in
the Queen's Mine region, and pXRF analyses indicate coincident anomalies of
associated elements. Zimbabwean gold mineralisation is typically associated
with narrow high-grade structures that can be mined from underground. The
Company is targeting areas where the confluence of structures and other
factors potentially create a much larger bulk target for follow up
BOTSWANA
Kalahari Copperbelt
The project consists of a total of 19 exploration licences, 11 of which are
retained 100% by Galileo, and 8 of which are under option with Sandfire
Resources, who are required to fund exploration activities on those licences.
The Kalahari Copperbelt is prospective for sediment hosted copper deposits and
the region is currently receiving global attention with new mine development
and a rapid advance of exploration work. Geological remodelling and the
controls on mineralisation are constantly being reviewed, and new thinking on
mineralisation styles is being propelled by heavy investment from the world's
major mining companies. Prospective geological horizons are readily being
explored in the region and Galileo are benefiting from an advantageous
position with licences surrounded by active explorers.
Kalahari Copper Belt (Retained Licences)
PL253/2018 Located in the north-western portion of the Kalahari Copper Belt
with part of the Licence sandwiched between ASX-listed Cobre Limited
exploration licences, where that company has recently reported the emergence
of a potential new discovery in this under-explored portion of the Belt. In
this area the highly prospective D'Kar/Ngwako Pan contact horizon is
interpreted to be tightly folded and thrust repeated.
PL039/2018 The north-eastern section of the licence is dominated by a
prominent NNW-SSE trending conductor, the geometry of which suggests this area
is situated at the southwest end of a conductive dome, offering potential for
the discovery of the target D'Kar Formation/Ngwako Pan Formation contact. The
setting of a conductive dome with major faulting within the licence suggests
that a A4/T3 style dome drill target with possible mineralisation at the
stratigraphic boundary between the Ngwako Pan/ D'Kar and remobilized upwards
via low-angle thrusts is the most likely exploration model for this area.
PL040/2018 The interpreted strike length of the prospective D'Kar formation
contact extends over 30km within this licence. Previous wide-spaced drilling
by Galileo intersected D'Kar/ Ngwako Pan contact but did not intercept
mineralisation. The Company selected priority zones for soil sampling along
the extensive length of the contact with a view to identifying potential
higher-grade zones along strike of and in between the current widely spaced
drill holes.
Period Under Review
· An Airborne Gravity Gradient ("AGG") survey jointly commissioned by
Cobre Limited and Sandfire Resources was undertaken in the previous reporting
period to include part of Galileo's licence PL253/2018, with results of the
survey released to Galileo, free of charge
· The results of the survey have provided valuable information on basin
architecture and have assisted the identification of the potential location of
copper-silver bearing trap-sites analogous to Sandfire's neighbouring T3 and
A4 deposits on the licence
Post Period Under Review
· Following previous positive results of a low detection mobile
metal-ion (Terraleach TM) soil sampling programme, the Company announced plans
for a follow-up IP geophysical survey over targets on licences PL039/2018 and
PL040/2018, to assist in defining drill ready targets
· A geophysical survey provider has been contracted to undertake a
series of IP/resistivity geophysical profiles across previously identified
soil geochemical targets and ground preparatory works have been completed
· The system has the capability to penetrate to 400m depth and can help
in defining the geological and structural framework as well as directly
detecting sulphide mineralisation
· The Galileo geochemical targets occupy a similar geological setting
('the Galileo Fold') to that drilled historically by Khoemacau Copper Mining
('Khoemacau' - now owned by MMG) coincident with the Mowana Fold axis and
Zones 5 and 9 mineralisation together with recently announced drill intercepts
by Arc Minerals ("Arc") on the adjoining Virgo Project
· At Mowana, which is located approximately 15km from the Galileo Fold,
Khoemacau reported drill intercepts of 4.3m @ 1.65% Cu and 6.1m @ 2.56% Cu.
Arc also recently drilled scout holes on the same structure on an adjacent
licence and reported 1m intervals assaying up to 3.65% Cu
· Independent external assessment commissioned by Galileo reported that
"the geological and structural setting of the Galileo Fold is almost identical
to that of the Mowana Fold and is believed to share the same level of
prospectivity."
NEVADA
Ferber gold-copper project
Period Under Review
An earlier Galileo project review identified several drill targets at Ferber
to test both skarn-type gold-copper occurrences and Carlin-type gold
occurrences on the 100% held property. The Company has applied for and
received an environmental permit for the planned programme and is actively
reviewing options to advance the project.
SOUTH AFRICA
Glenover Phosphate Project
Period Under Review
The Company reported that the Glenover sale had been settled in full, with the
second tranche payment received on the 2 May 2024, amounting to approximately
ZAR48.8 million (approx. GBP2.1M), and the final payment of ZAR5.7 million
(approx. GBP 0.25M) received in May 2024. The final cash payment marked the
completion of the Project disposal by Galileo.
For further information, please contact:
Colin Bird, Chairman and CEO Tel +44 (0) 20 7581 4477
Edward Slowey, Executive Director Tel +353 (1) 601 4466
www.galileoresources.com (http://www.galileoresources.com)
Beaumont Cornish Limited
Nominated Advisor
Roland Cornish/James Biddle Tel +44 (0)20 7628 3396
Novum Securities Limited - Broker
Colin Rowbury/ Jon Belliss Tel +44 (0)20 7382 8416
The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulations
(EU) No. 596/2014 as it forms part of UK Domestic Law by virtue of the
European Union (Withdrawal) Act 2018 ("UK MAR").
Statement of Responsibility for the six months ended 30 September 2024
The directors are responsible for preparing the consolidated interim financial
statements for the six months ended 30 September 2024 and they acknowledge, to
the best of their knowledge and belief, that:
· the consolidated interim financial statements for the six months ended
30 September 2024 have been prepared in accordance with UK adopted IAS 34 -
Interim Financial Reporting
· based on the information and explanations given by management, the
system of internal control provides reasonable assurance that the financial
records may be relied on for the preparation of the consolidated interim
financial statements. However, any system of internal financial control can
provide only reasonable, and not absolute, assurance against material
misstatement or loss
· the going concern basis has been adopted in preparing the consolidated
interim financial statements and the directors of Galileo have no reason to
believe that the Group will not be a going concern in the foreseeable future,
based on forecasts and available cash resources
· these consolidated interim financial statements support the viability
of the Company; and
· having reviewed the Group's financial position at the balance sheet
date and for the period ending on the anniversary of the date
of approval of these financial statements they are satisfied that the Group
has, or has access to, adequate resources to continue in operational existence
for the foreseeable future
Colin Bird
Chairman and Chief Executive Officer
30 December 2024
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
Six months Six months Year
ended ended ended
30 September 30 September 31 March
2024 2023 2024
(Unaudited) (Unaudited) (Audited)
£s (Restated) £s £s
ASSETS
Intangible 6 8,557,017 5,370,610 8,484,868
assets
Investment in joint ventures & 7 - 835,149 -
associates
Loans to joint ventures, associates and subsidiaries 9,134 9,103 8,831
Other financial 8 1,893,842 5,074,564 2,870,313
assets
Non-current assets 10,459,993 11,289,426 11,364,012
Trade and other receivables 310,651 300,308 303,807
Cash and cash equivalents 2,779,802 88,719 42,860
Other financial assets 11,469 51,136 9,296
Current assets 3,101,922 440,163 355,963
Non-current assets held for sale and assets of disposal 9 - 160,883 2,149,353
groups
Total Assets 13,561,915 11,890,472 13,869,328
EQUITY AND LIABILITIES
Share capital 32,782,905 32,782,905 32,782,905
Reserves (210,439) 198,676 18,072
Accumulated loss (19,676,629) (21,318,604) (21,848,750)
12,895,837 11,662,977 10,952,227
Non-controlling interest 474,153 117,754 474,153
Equity 13,369,990 11,780,731 11,426,380
Liabilities
Other financial liabilities - - -
Non-current liabilities - - -
Trade and other payables
191,925 109,741 158,356
Taxation payable - - -
191,925 109,741 158,356
Liabilities of disposal group - - 2,284,592
Total liabilities 191,925 109,741 2,442,948
Total Equity and liabilities 13,561,915 11,890,472 13,869,328
Joel Silberstein
30 December 2024
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Six months Six months Year
ended ended ended
30 September 30 September 31 March
2024 2023 2024
(Unaudited) (Unaudited) (Audited)
£s (Restated)£s £s
Other Income 170,499 435 130,611
Operating expenses (679,905) (585,411) (1,094,144)
Operating loss (509,406) (584,976) (963,533)
Investment revenue 384,870 295,433 15,803
Fair value adjustments - (162,802) (18,385)
Profit/(loss) on sale of investments - (19,416) -
Provision for impairment - - -
Profit on sale of Non Current Assets held for sale 9 2,454,817 - -
Profit/(loss) for the period before taxation 2,330,281 (471,761) (966,115)
Taxation (158,169) (50,003) (85,786)
Profit/(loss) for the period after taxation 2,172,112 (521,764) (1,051,901)
Other comprehensive income/(loss):
Exchange differences on translating foreign operations (228,502) (203,374) (383,978)
Other adjustments - - (9)
Total comprehensive income/(loss) 1,943,610 (725,138) (1,435,888)
Total comprehensive loss attributable to:
Owners of the parent 1,943,610 (725,138) (1,435,888)
Weighted average number of ordinary shares in issue 1,163,188,453 1,160,943,355 1,163,188,453
Basic earnings/(loss) per share - pence 0.19 (0.05) (0.09)
STATEMENTS OF CHANGES IN EQUITY as at 30 September 2024
Total capital Foreign currency translation reserve Merger Shares to be issued reserve Share based payment reserve Total reserves Accumulated Total equity
Share Share
reserve loss
Capital
premium
Figures in Pound Sterling
reserve
Balance at 1 April 2023 6,770,910 25,982,620 32,753,530 (1,131,080) 1,047,821 - 504,356 421,097 (20,815,887) 12,358,740
Loss for the year - - - - - - - - (1,051,901) (1,051,901)
Other comprehensive income - - - (383,978) - - - (383,978) (9) (383,987)
Total comprehensive income for the year - - - (383,978) - - - (383,978) (1,051,910) (1,435,888)
Issue of shares net of issue costs 2,500 26,875 29,375 - - - - - - 29,375
Options issued - - - - - - - - - -
Options lapsed - - - - - - - - - -
Warrants lapsed - - - - - - (19,047) (19,047) 19,047 -
Warrants issued - - - - - - - - - -
Warrants exercised - - - - - - - - - -
Total contributions by and distributions to owners of company recognised 2,500 26,875 29,375 - (19,047) (19,047) 19,047
directly in equity
- - 29,375
Balance at 1 April 2024 6,773,410 26,009,495 32,782,905 (1,515,067) 1,047,821 - 485,309 18,072 (21,848,750) 10,952,227
Profit for the 6 months - - - - - - - - 2,172,112 2,172,112
Other comprehensive income - - - (228,502) - - - (228,502) - (228,502)
Total comprehensive income for the 6 months - - - (228,502) - - - (228,502) 2,172,112 1,943,610
Warrants lapsed - - - - - - - - - -
Issue of shares - - - - - - - - -
Total contributions by and distributions to owners of company recognised - - - - - - - - - -
directly in equity
Balance at 30 September 2024 6,773,410 26,009,495 32,782,905 (1,743,569) 1,047,821 - 485,309 (210,439) (19,676,629) 12,895,837
CONSOLIDATED STATEMENTS OF CASH FLOW Six months Six months Year
ended ended ended
30 September 30 September 31 March
2024 2023 2024
(Unaudited) (Unaudited) (Audited)
£s £s £s
Cash used in operations (653,625) (714,898) (1,049,720)
Interest income - - -
Net cash from operating activities (653,625) (714,898) (1,049,720)
Additions to intangible assets (207,663) (236,652) (402,210)
Sale of intangible - - -
Distributions from Joint Ventures (incl subs, JVs & Assoc) - - (836,476)
Proceeds on sale of non-current assets held for sale 2,319,578 - -
Net movement in loans - 444 -
Purchase of financial assets (559,364) (965,385) (1,021,468)
Sale of financial assets 1,838,016 569,704 1,917,224
Net cash flows from investing activities 3,390,567 (631,889) (342,930)
Net Proceeds on share issue - - -
Repayment of loans from group companies - (5) -
Net cash flows from financing activities - (5) -
Total cash movement for the period 2,736,942 (1,346,792) (1,392,651)
Cash at the beginning of the period 42,860 1,435,511 1,435,511
Total cash at end of the period 2,779,802 88,719 42,860
Notes to the Financial Statements
1. Status of interim report
The Group unaudited condensed interim results for the six months ended 30
September 2024 have been prepared using the accounting policies applied by the
Company in its 31 March 2024
annual report, which are in accordance with UK adopted international
Accounting Standard, the AIM rules of the London Stock Exchange and the
Companies Act 2006 (UK). This condensed consolidated interim financial report
does not include all notes of the type normally included in an annual
financial report. Accordingly, this report is to be read in conjunction with
the annual report for the year ended 31 March 2024 and any public
announcements by Galileo Resources Plc. All monetary information is presented
in the presentation currency of the Company being Great British Pound. The
Group's principal accounting policies and assumptions have been applied
consistently over the current and prior comparative financial period. The
financial information for the year ended 31 March 2024 contained in this
interim report does not constitute statutory accounts as defined by section
435 of the Companies Act 2006. A copy of the statutory accounts for that year
has been delivered to the Registrar of Companies. The auditor's report on
those accounts was unqualified and did not contain a statement under section
498(2)-(3) of the Companies Act 2006.
2. Basis of preparation
The consolidated financial statements incorporate the financial statements of
the Company and all entities for the six months ended 30 September 2024,
including special purpose entities, which are controlled by the Company.
Control exists when the Company has the power to govern the financial and
operating policies of an entity to obtain benefits from its activities. The
results of subsidiaries are included in the consolidated annual financial
statements from the effective date of acquisition to the effective date of
disposal. Adjustments are made when necessary to the annual financial
statements of subsidiaries to bring their accounting policies in line with
those of the Group. The consolidated financial statements have been prepared
on the basis of accounting policies applicable to going concern.
All intra-group transactions, balances, income and expenses are eliminated in
full on consolidation. Non-controlling interests in the net assets of
consolidated subsidiaries are identified and recognised separately from the
Group's interest therein and are recognised within equity. Losses of
subsidiaries attributable to non-controlling interests are allocated to the
non-controlling interest even if this results in a debit balance being
recognised for non-controlling interest. Transactions which result in changes
in ownership levels, where the Group has control of the subsidiary both before
and after the transaction, are regarded as equity transactions and are
recognised directly in the statement of changes in equity. The difference
between the fair value of consideration paid or received and the movement in
non-controlling interest for such transactions is recognised in equity
attributable to the owners of the parent.
3. Segmental analysis
Business unit
The Company's investments in subsidiaries and associates, that were
operational at year-end, operate in four geographical locations being Zambia,
Zimbabwe, Botswana, and USA, and are organised into one business unit, namely
Mineral Assets, from which the Group's expenses are incurred and future
revenues are expected to be earned. This being the exploration for and
extraction of its mineral assets through direct and indirect holdings. The
reporting on these investments to the board focuses on the use of funds
towards the respective projects and the forecasted profit earnings potential
of the projects.
The Company's investment in Zambia did not contribute to the operating profit
or losses and is excluded from the segmental analysis.
Geographical segments
An analysis of the profit/(loss) on ordinary activities before taxation is
given below:
Six months ended 30 Six months ended 30 Year
September September ended
2024 2023 31 March
(Unaudited) (Unaudited) 2024
(Audited)
£s £s £s
Profit/(loss) on ordinary activities before taxation:
Rare earths, aggregates and iron ore and manganese - South Africa (3,037,310) 90,469 (174,840)
Gold - USA - (1,155) 9,434
Copper - Botswana 35,812 (47,696) 69,485
Copper and Corporate costs - United Kingdom
829,387 (563,382) 1,062,036
Gold and lithium - Zimbabwe - - -
2,172,112 (521,764) 966,115
Geographical segments
An analysis of total liabilities:
Six months ended 30 Six months ended 30 Year
September September ended
2024 2023 31 March
(Unaudited) (Unaudited) 2024
(Audited)
£s £s £s
Rare earths, aggregates and iron ore and manganese - South Africa (11,087) (1,915) (2,284,598)
Gold - USA - - -
Copper - Zambia - - (156,235)
Copper - Botswana (1,839) (4,759) (2,115)
Copper and Corporate costs - United Kingdom
(178,995) (103,067) -
Gold and lithium - Zimbabwe - - -
(191,921) (109,741) (2,442,948)
Geographical segments
An analysis of total assets:
Six months ended 30 Six months ended 30 Year
September September ended
2024 2023 31 March
(Unaudited) (Unaudited) 2024
(Audited)
£s £s £s
Rare earths, aggregates and iron ore and manganese - South Africa 104,864 2,288,091 3,748,043
Gold - USA 1,617,136 1,750,566 1,711,675
Copper -Zambia 4,142,057 2,964,971 3,525,134
Copper - Botswana 1,576,760 1,478,873 1,537,892
Copper and Corporate costs - United Kingdom
2,996,900 1,138,263 299,686
Gold and lithium - Zimbabwe 3,124,198 2,269,708 3,046,898
13,561,915 11,890,472 13,869,328
4. Financial review
The Group reported profit of £2,172,212 (2023: loss of £521,764) after
taxation. Profit/(Loss) per share reported is 0.19 pence (2023: loss of 0.05
pence) per share. Profit/(Loss) per share is based on a weighted average
number of ordinary shares in issue of 1,163,188,453 (2023: 1,160,943,355).
5. Share Capital
No new ordinary shares were issued by the Company during the period under
review.
Warrants
The Company had the no warrants outstanding at the period end.
Share Options 30 September 2024 30 September 31 March
2023 2024
Outstanding at the beginning of the year 98,700,000 98,700,000 98,700,000
Options granted during the year - - -
98,700,000 98,700,000 98,700,000
6. Intangible assets
Reconciliation of Intangible assets:
Group as at 30 September 2024
Asset currency Opening Additions Foreign exchange movements Total
Exploration and evaluation asset - Botswana BWP 1,542,419 37,121 (7,566) 1,571,974
Exploration and evaluation asset - U.S.A. US$ 2,228,501 3,735 (127,948) 2,104,288
Exploration and evaluation asset - Zambia ZMW 1,667,050 89,506 - 1,756,556
Exploration and evaluation asset - Zimbabwe ZWD 3,046,898 77,301 - 3,124,199
8,484,868 207,663 (135,514) 8,557,017
Group as at 30 September 2023
Asset currency Opening balance Additions Foreign exchange movements Closing balance
Exploration and evaluation asset - Botswana BWP 1,470,267 50,810 (43,070) 1,478,007
Exploration and evaluation asset - U.S.A. US$ 2,154,613 114,881 15,437 2,284,931
Exploration and evaluation asset - Zambia ZMW 1,536,711 70,961 - 1,607,672
Total intangible assets 5,161,591 236,652 (27,633) 5,370,610
Group as at 31 March 2024
Asset currency Opening Additions Foreign exchange movements Total
Exploration and evaluation asset - Botswana BWP 1,470,267 141,720 (69,568) 1,542,419
Exploration and evaluation asset - U.S.A. US$ 2,154,613 130,152 (56,264) 2,228,501
Exploration and evaluation asset - Zambia ZMW 1,536,711 130,339 - 1,667,050
Exploration and evaluation asset - Zimbabwe ZWG - 3,046,898 - 3,046,898
5,161,591 3,449,109 (125,832) 8,484,868
Botswana
The Company currently holds copper licenses in the highly prospective Kalahari
Copper Belt ("KCB"), The KCB is approximately 800km long by up to 250km wide,
is a northeast-trending Meso- to Neoproterozoic belt that occurs
discontinuously from western Namibia and stretches into northern Botswana
along the northwestern edge of the Paleoproterozoic Kalahari Craton. The KCB
is prospective for sediment hosted copper deposits and the region is currently
has new mine development and a rapid advance of exploration work.
The belt contains copper-silver mineralisation, which is generally stratabound
and hosted in metasedimentary rocks of the D'Kar Formation near the contact
with the underlying Ngwako Pan Formation. The hanging wall-footwall redox
contact is a distinctive target horizon that consistently hosts copper-silver
mineralization in fold-hinge settings. The geological setting is similar to
that of the major Central African Copper Belt and Kupferschiefer in Poland.
Kalahari Copper Belt Licences
PL253/2018 Located in the north-western portion of the Kalahari Copper Belt
with part of the Licence sandwiched between ASX-listed Cobre Limited
exploration licences, where that company has recently reported the emergence
of a potential new discovery in this under-explored portion of the Belt. In
this area the highly prospective D'Kar/Ngwako Pan contact horizon is
interpreted to be tightly folded and thrust repeated.
PL039/2018 The north-eastern section of the licence is dominated by a
prominent NNW-SSE trending conductor, the geometry of which suggests this area
is situated at the southwest end of a conductive dome, offering potential for
the discovery of the target D'Kar Formation/Ngwako Pan Formation contact.
PL040/2018 The interpreted strike length of the prospective D'Kar formation
contact extends over 30km within this licence. Previous wide-spaced drilling
by Galileo intersected D'Kar/ Ngwako Pan contact but did not intercept
mineralisation.
United States
Ferber Copper Gold Project ("FCG")
The FCG project is located 25 miles south of Wendover, NV, Ferber Hills, Elko
County, Nevada.
The Ferber District consists of a multi-phase Cretaceous-Tertiary igneous
complex intruding Pennsylvania-Permian age carbonates. The limestone units are
domed around the intrusive. Marble and skarn are developed at the margin of
the intrusive complex. The sedimentary and intrusive rock is cut by faults of
various orientations. Much of the area is covered by a shallow alluvium.
Copper-lead-silver-gold deposits were discovered in the area in the 1880s. Ore
was shipped from the Martha Washington, Big Chief, Regent and other small
mines intermittently over the years.
Zambia
Luansobe Copper Project
The Luansobe area is situated some 15km to the northwest of the Mufulira Mine
in the Zambian Copperbelt which produced well over 9Mt of copper metal during
its operation. It forms part of the northwestern limb of the northwest -
southeast trending Mufulira syncline and is essentially a strike continuation
of Mufulira, with copper mineralisation hosted in the same stratigraphic
horizons. At the Luansobe prospect mineralisation occurs over two
semi-contiguous zones, dipping at 20-30 degrees to the northeast, over a
strike length of about 3km and to a vertical depth of at least 1,250m.
The Shinganda Copper-Gold Project
The Shinganda Copper-Gold Project, comprises of the Large Scale Exploration
Licence No. 22990-HQ-LEL. The licence is located in Western Zambia, just
outside the game management area of the Kafue National Park and is prospective
for deposits of copper and gold associated with IOCG (Iron Oxide Copper Gold)
deposits. Considerable potential exists in the licence to transition to
near-term production following the identification of mineralisation at grades
of between 1.0 and 1.5% CuEq at shallow depths over notable package widths in
the first two phases of drilling completed on the project.
The Western Foreland
The Western Foreland Project comprises large scale exploration licence
28001-HQ-LEL which has a total area of 52,000 hectares and is situated in
Northwestern Zambia, along the Angolan-Zambian border. The project is adjacent
to the Central African Copper Belt, where significant potential exists for the
discovery of sediment hosted copper deposits akin to the nearby Kamoa-Kakula
complex.
Kashitu
The Kashitu Zinc Project is situated 7km south-east from the historical Kabwe
Zn-Pb mine and processing plant, and immediately adjacent to and south of the
town of Kabwe, in Zambia which is 140km north of the capital Lusaka.
7. Investment in joint ventures and associates
Six months ended 30 Six months ended 30 Year
September September ended
2024 2023 31 March
(Unaudited) (Unaudited) 2024
(Audited)
£s £s £s
Cordoba -BC Ventures - 835,149 -
- 835,149 -
On 21 January 2022, Cordoba and BC Ventures entered into an option agreement
(the "Principal Agreement") which provided Cordoba with an option to acquire
51% of BC Ventures by funding US$1,500,000 of exploration expenditure within 2
years for BC Venture's 100% owned Zimbabwean subsidiary Sinamatella
Investments (Private) Limited ('Sinamatella') holds three Exclusive
Prospecting Orders ('EPOs') No's 1782, 1783 and 1784 in the Kamativi Regional,
'Bulawayo North' and 'Bulawayo South' areas in the Republic of Zimbabwe. EPO
1782 is primarily prospective for lithium (tantalum, niobium, tin, tungsten,
REE's and copper) whilst EPO5 1783 and 1784 are primarily prospective for
gold. The three EPOs were issued on 12 March 2021 and have a term of 3 years.
On 4 March 2022 Galileo entered into a Deed of Assignment with Cordoba and BC
Ventures (the "Deed of Assignment") under which Cordoba has assigned all its
rights and obligations under the Principal Agreement to Galileo for £150,000
which was settled by the issue of 13,741,609 new ordinary Galileo Resources
plc shares in relation to the Consideration Shares.
On 9 August 2022, Galileo signed an addendum (the "Addendum") to an agreement
dated 21 January 2022. Under the Addendum, Galileo acquired a 29% shareholding
in BC Ventures (the "Share Acquisition") for the issue of 50,000,000 Galileo
Resources plc shares (the "Consideration Shares").
The period for the expenditure of US$1.5M to be incurred by the Company under
the Principal Agreement to acquire 51% of BC Ventures was extended by 6 months
to 21 July 2024.
As of 31 March 2022, all amounts in relation to BC Ventures were accounted
for as Other Financial Assets.
On 12 January 2024, the Company exercised its option to acquire a further 51%
shareholding in BC Ventures Limited and thereby increased its shareholding to
80%. On this date, the Investment in Associate of 29% was re-measured to fair
value, with the gain recognised in profit/loss.
8. Other Financial assets
Six months ended 30 Six months ended 30 Year
September September ended
2024 2023 31 March
(Unaudited) (Unaudited) 2024
(Audited)
£s £s £s
Cordoba -BC Ventures - 1,434,559 -
Sandfire listed investment - 702,228 -
Afrimat listed investment - 2,096,802 1,533,662
Shinganda Project 1,377,461 611,190 1,084,913
Star Zinc - 18,162 -
Northwest Zambia project 516,381 211,623 251,738
1,893,842 5,074,564 2,870,313
Sandfire listed investment
As announced on 16 September 2021, Galileo sold 9 of its Company's Kalahari
Copper Belt Licences to Sandfire Resources. As part of the consideration
Sandfire issued 370,477 Sandfire ordinary shares to the Company. As at 30
September 2024, the Company no longer held any Sandfire shares.
Afrimat Limited listed investment
As announced on 23 June 2023 in relation to the sale of its share in Glenover
Phosphate (Pty) Ltd the Company received the first tranche payment of ZAR52.6
million (approx. £2.1 million) in respect of Sales Claims which was settled
by the issue of 903,994 Afrimat shares calculated on a 30-day volume weighted
average price ("VWAP") of ZAR55.91. Afrimat is a leading mid-tier mining and
materials company. The Group listed on the JSE Main Board in 2006. As at 30
September 2024, the Company no longer held any Afrimat shares.
9. Non-Current Held For Sale asset
Group as at 30 September 2024
Glenover Phosphate (Pty) Ltd
Galileo's held direct investment in Glenover is 30.70% and it also had an
indirect investment in Glenover through its shareholding in Galagen
Proprietary Limited, a special purpose vehicle incorporated to hold the BEE
shareholding in the Glenover Project, of 4.99% resulting in a total interest
in Glenover of 35.69%. The carrying amounts of Joint Ventures were shown net
of impairment losses. Galileo's share of the equity accounted profit/loss for
the Joint Venture was recognised from the date of acquisition on 4 July 2011.
As announced on 9 December 2021, Glenover entered into an Asset sale
agreement with JSE Limited listed Afrimat Limited (JSE: AFT) ("Afrimat") for
ZAR250 million (approximately £11.64 million) of certain deposits of
phosphate rock located at the Glenover Mine and mining rights to mine the
Vermiculite Deposit at the Glenover Mine (the "Asset Sale Agreement").
Phase 1: ZAR215.1 million (approximately £10 million) of the Asset Sale
Agreement consideration is unconditional and a dividend of ZAR46 million
(approximately £2.16 million) was paid to Galileo during February 2022 in
respect of its 29% direct shareholding and 4.99% indirect holding in Glenover;
and Phase 2: ZAR34.9 million (approximately £1.64 million) of the Asset Sale
Agreement consideration was conditional on the issue of a vermiculite mining
licence to Glenover.
On 30 March 2022 the Company announced that it had received confirmation that
all conditions for Afrimat Limited to acquire the Vermiculite Mining Right
from Glenover have been met and that Glenover has elected for the Vermiculite
Mining Right Consideration to be paid in cash. ZAR11 million (approximately
£0.52 million) was received in Q3 2022 in respect of its 30.70% direct and
4.99% indirect shareholding in Glenover. Upon conclusion of phase two of the
Glenover Asset Sale Agreement Galileo's direct interest in Glenover increased
from 29.00% to 30.70%. Glenover also entered into a conditional sale of shares
agreement between Afrimat, Glenover and the shareholders of Glenover including
Galileo Resources SA (Pty) Ltd the Company's wholly owned South African
subsidiary under which Glenover has the option to acquire the sale of shares
in and shareholders loans made to Glenover for ZAR300 million (approximately
£14 million) which was expected to complete by 15 June 2023.
If the option is exercised ("Conditional Share Sale Agreement"). Galileo's
share of the gross Conditional Share Sale Agreement consideration in respect
of its 30.70% direct shareholding in Glenover was ZAR87 million (approximately
£4.1 million). On 20 October 2022, the Company announced that Afrimat had
agreed to exercise the option to acquire the shares of Glenover.
On 21 June 2023, the parties signed an addendum to the conditional sale of
shares and shareholders loan agreement between Afrimat, Glenover and the
shareholders of Glenover which gave rise to Afrimat's Option (the "Addendum")
which confirmed the Sale Claims and Share sale consideration. The amended
terms removed the requirement for the previous suspensive conditions to be met
before the first two tranches of consideration are paid and instead set out a
revised timetable for the receipt of such amounts, as well as amending the
second tranche to be paid in cash.
First tranche payment of ZAR150 million (approx. GBP6.4 million) in respect of
Sales Claims to be settled by the issue of Afrimat shares calculated on a
30-day volume weighted average price ("VWAP") on the payment date with
Galileo's estimated portion of ZAR50 million (approx. GBP2.1 million).Second
tranche payment of ZAR147 million (approx. GBP6.3 million) to be settled on or
before 30 April 2024, in respect of Sales Claims to be settled in cash.
Galileo's estimated portion will be approximately ZAR49 million (approx.
GBP2.1 million).
Cash consideration of ZAR3 million (approx. GBP128K) in respect of the
Glenover shares subject to the fulfilment of the suspensive conditions.
Galileo's estimated portion will be approximately ZAR1 million (approx.
GBP42K). Suspensive conditions applicable are as follows: i) The Approval in
terms of section 11 of the Mineral and Petroleum Resources Development Act No.
28 of 2002 ("MPRDA"); and ii) the completion of the 30 June 2023 audited
financial statements and collation of all company documentation on or before
30 April 2024.
In May 2024, the Company announced that it had received all outstanding funds
in relation to the second tranche payment.
Six months ended 30 Six months ended 30 Year
September September ended
2024 2023 31 March
(Unaudited) (Unaudited) 2024
(Audited)
£s £s £s
Proceeds for loan accounts and shares 2,309,581 - -
Non-current assets held for sale March 2024
2,149,392 - -
Liabilities held for sales March 2024 (2,284,592) - -
FX difference 9,996 - -
Profit on sale 2,454,817 - -
10. Going concern
The Company has sufficient financial resources to enable it to continue in
operational existence for the foreseeable future and meet its liabilities as
they fall due.
The directors have further reviewed the financial position of the Company at
the date of this report and Company's cash flow forecast which includes the
receipt from the proceeds of the sale of shares in Glenover which the Company
received in May 2024. The Company has a very prospective portfolio of projects
all of which will be pursued during 2025.
Accordingly, the directors consider it appropriate to continue to adopt the
going-concern basis in preparing these financial statements. This basis
presumes that funds will be available to finance future operations and that
the realisation of assets and settlement of liabilities and commitments will
occur in the ordinary course of business.
11. Post balance sheet events
There were no significant events.
END.
Beaumont Cornish Limited ("Beaumont Cornish") is the Company's Nominated
Adviser and is authorised and regulated by the FCA. Beaumont Cornish's
responsibilities as the Company's Nominated Adviser, including a
responsibility to advise and guide the Company on its responsibilities under
the AIM Rules for Companies and AIM Rules for Nominated Advisers, are owed
solely to the London Stock Exchange. Beaumont Cornish is not acting for and
will not be responsible to any other persons for providing protections
afforded to customers of Beaumont Cornish nor for advising them in relation to
the proposed arrangements described in this announcement or any matter
referred to in it.
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