Interim results for the 6 months ended 31 Dec 2025
31/03/2026 07:00
RNS Number : 6823Y
GCM Resources PLC
31 March 2026
31 March 2026
GCM Resources plc
("GCM" or the "Company")
Interim Results for the 6 months ended 31 December 2025
GCM Resources plc (AIM: GCM), the AIM traded resource exploration and development company, announces its interim results for the six months ended 31 December 2025. The Chairman's Statement and the full unaudited interim report are presented below and will shortly be available at the Company's website www.gcmplc.com.
Highlights and Outlook
· Geopolitical energy disruption in early 2026 exposed Bangladesh's vulnerability to imported fuel shocks; policy debate has shifted toward greater use of domestic energy resources:
· Phulbari remains development‑ready and capable of supplying at least 60% of Bangladesh's current domestic coal power demand, with the additional benefit of reducing the country's FX outflow.
· Metallurgical coal traded on the international market will increase FX.
· Corporate progress: MOU with PowerChina extended to Dec 2027; EPC scope evolved; two post‑period placings raised circa £2.25m (Jan-Feb 2026) to strengthen working capital; board change (interim NED Chair).
· H1 FY26 financials: loss after tax £1.012m; lower admin costs and continued capitalised pre‑development expenditure.
· BNP won the Bangladesh National Election and the Company is well positioned to support its evolving energy security strategy. Management priorities:
· Advance engagement with the newly elected government and remain responsive to government policy and market conditions.
· Preserve technical studies, permit readiness and keep stakeholders informed.
· Manage costs and liquidity with current cash from recent placings.
Chairman's Statement
Before moving on to review the reporting period, recent developments in global energy markets and Bangladesh's evolving energy policy warrant highlighting given their relevance to the long-term outlook for the Phulbari Coal and Power Project.
Over the past year the debate surrounding Bangladesh's energy security has intensified. The country has invested heavily in modern coal-fired generation capacity, with some 8,000 megawatts of predominantly high-efficiency, low-emission Ultra-Supercritical ("HELE") coal-based power plants installed. However, many of these facilities depend on imported coal, resulting in pressure on foreign exchange reserves ("FX") and exposing the power sector to volatility in international fuel markets.
The vulnerability associated with heavy reliance on imported energy has become increasingly evident in global markets during early 2026 following the escalation of conflict involving Iran and other regional actors in the Middle East. The Strait of Hormuz, through which approximately 20% of the world's oil and liquefied natural gas ("LNG") supply passes, has experienced significant disruption. This has resulted in volatility in oil and LNG markets and increased shipping risks and associated costs.
Energy analysts note that even temporary disruption to this strategic chokepoint can result in significant long-term price increases and supply chain instability, highlighting the vulnerability of energy-importing economies to geopolitical shocks affecting global fuel supply routes.
For developing economies in particular, these developments reinforce the importance of maintaining a balanced energy strategy which combines imported fuels with the development of domestic energy resources where available. The ongoing disruption has served as a reminder across many energy-importing nations, such as Bangladesh, of the risks associated with excessive dependence on international energy markets and long supply chains.
Against this broader global context, there has been growing recognition within Bangladesh's policy community that the country should consider utilising its own substantial domestic coal resources. Bangladesh is estimated to possess more than 7.8 billion tonnes of coal resources. However, much of this is destined to remain in the ground, with "proved" mining reserves known only for the Phulbari, Barapukuria and Dighipara coal deposits.
Bangladesh currently produces coal only from the Barapukuria underground mine, which supplies the adjacent Barapukuria power station. In policy discussions concerning the future of the country's coal sector, officials frequently reference both Barapukuria and the much larger Phulbari deposit as the principal known coal resources capable of contributing to domestic energy supply. While Barapukuria has demonstrated that coal can be successfully produced within Bangladesh, the significantly larger scale and favourable geology of the Phulbari resource has long been recognised as offering the potential to supply a substantial portion of the country's long-term coal requirements through open pit mining, should development approval be granted.
Energy Policy Developments in Bangladesh
During the reporting period Bangladesh's Interim Government continued to review national energy policy considering rising fuel import costs and concerns regarding long-term energy security.
In July 2025, advisers to the Interim Government's Energy and Power Division publicly noted that Bangladesh's growing fleet of coal-fired power plants had created a structural dependence on imported coal. Officials indicated that while imported fuels will remain an important component of the country's energy mix, consideration should also be given to the responsible development of domestic energy resources where feasible.
Senior officials within the Ministry of Power, Energy and Mineral Resources also highlighted the increasing pressure that energy imports place on the country's foreign exchange reserves. Officials observed that Bangladesh's energy import bill has risen significantly in recent years due to global price volatility affecting coal, liquefied natural gas and petroleum products.
An important milestone in this policy discussion occurred prior to the reporting period in February 2025 when the Ministry convened a government-organised seminar titled "Prospects and Challenges of Bangladesh's Coal Resources and Measures to Overcome." The seminar, chaired by the Energy Secretary and attended by government officials, academics and sector specialists, examined the role that domestic coal resources could potentially play in strengthening long-term energy security and highlighted the importance of the proposed Phulbari coal mine development.
During the seminar it was noted that Bangladesh's existing coal-fired power plants cannot consistently operate at full capacity due to constraints associated with imported coal supply and the associated foreign currency requirements.
Working Environment - Reporting Period
The reporting period occurred during a period of significant political transition in Bangladesh following the establishment of an Interim Government led by Nobel laureate Dr Muhammad Yunus after the political events of 2024.
The Interim Government had been tasked with overseeing governance reforms and preparing the country for future national elections. Reform commissions were established to review a range of areas including the constitution, electoral processes, judicial administration and anti-corruption frameworks.
Throughout the second half of 2025 the political environment remained relatively stable, although debate regarding the timing of future elections continued among political parties.
During this period the Bangladesh Nationalist Party ("BNP"), one of the country's principal political parties, also articulated policy views regarding national energy security. BNP leaders have stated publicly that Bangladesh should examine options to strengthen domestic energy production in order to reduce reliance on imported fuels.
Tarique Rahman, the son of former Prime Minister Khaleda Zia, returned to Bangladesh on 25 December after 17 years of exile in London. Following the passing of former Prime Minister Khaleda Zia on 30 December, he became the BNP party's Chairman.
In several public addresses during late 2025, the BNP Chairman emphasised that long-term economic stability would require Bangladesh to develop its own natural resources while maintaining appropriate environmental safeguards. BNP advisers reinforced the message that the country's energy policy should balance imported energy sources with responsible development of domestic resources where viable.
Working Environment - Post Reporting Period
The Bangladesh general election of 12 February 2026 marked a dramatic political shift in the country's post-Hasina era. It was the first national vote since the 2024 uprising that forced Prime Minister Sheikh Hasina from power, ending more than fifteen years of Awami League rule. The BNP won in a decisive landslide, securing roughly two-thirds of parliamentary seats and forming a majority government.
The newly elected BNP government with Tarique Raham as Prime Minister was sworn in on 17 February 2026. Within a matter of weeks, the new government was confronted with rapidly rising global energy prices and supply disruptions linked to the Middle East conflict. With Bangladesh's heavy reliance on imported fuels to sustain electricity generation and industrial production, disruption to maritime energy supply chains or price spikes quickly translates into domestic power shortages and fiscal stress. As a result, Prime Minister Rahman's government entered office confronting the dual challenge of stabilising fuel and electricity supply while also containing inflation and maintaining economic confidence in a fragile transition environment.
Compounding these pressures is the timing of the Islamic calendar. The government's first weeks coincide with Ramadan and the Eid al-Fitr holidays, a period when political and administrative activity traditionally slows. Parliamentary work, legislative initiatives and bureaucratic decision-making are often delayed as ministers and civil servants take leave and public life shifts toward religious observance and family gatherings. At the same time, Ramadan typically increases demand for electricity and imported food commodities, placing additional stress on energy supply and prices. For the newly installed BNP administration, this combination of a global energy shock, immediate economic expectations from voters, and the temporary slowdown of governance during Ramadan and Eid has created a challenging start to Tarique Rahman's premiership.
While the Company does not take positions on domestic political matters, the Board continues to monitor developments in the national policy debate regarding energy security and resource development.
Strategic Importance of the Phulbari Coal and Power Project
During the reporting period the Company's activities focused on promoting the Project's relevance, particularly with government officials, many of whom were new in their roles. At the same time our team maintained the Project in a position of development readiness, preserving the extensive technical data assembled during earlier feasibility work and monitoring policy developments within Bangladesh's energy sector.
The Board believes that the Project remains well positioned to contribute to Bangladesh's long-term energy security objectives should the Government decide to proceed with the development of domestic coal resources. As with any major resource project, development of the Phulbari Project remains subject to the approval of the Government of Bangladesh and the completion of all applicable regulatory and permitting processes.
Large Domestic Energy Resource
The Phulbari coal deposit represents one of the largest undeveloped coal resources in South Asia, with a substantial JORC-compliant 572 million tonnes resource capable of supporting multi-decade production.
Supports Existing Power Infrastructure
Bangladesh has installed approximately 8,000 MW of modern coal-fired generation capacity, the majority of which currently relies on imported coal supplies. The Phulbari coal mine will supply over 60% of the domestic coal power station demand.
Foreign Exchange Savings
Domestic coal production from Phulbari has the potential to reduce Bangladesh's reliance on imported fuels and alleviate pressure on foreign exchange reserves by several billions of dollars per annum. In addition, Phulbari is planned to produce 3 million tonnes per annum Metallurgical Coal destined for international markets which will earn foreign currency and further positively impact foreign exchange reserves. It will also produce large volumes of industrial mineral co-products from the mine overburden (removed to access coal), further reducing pressure on foreign exchange reserves as large amounts of these materials are imported.
Development-Ready Project
Extensive feasibility studies, environmental assessments and technical planning have been completed, positioning the Project for potential development subject to Government approval.
Long-Term Energy Security
Phulbari could provide a stable long-term domestic fuel source capable of supporting baseload electricity generation. In addition, it is planned to operate a 2,000 MW solar power plant located within the mine project area and ramp up to some 4,000 MW capacity progressively towards and post mine closure.
Announcements during the Reporting Period
(July - December 2025)
On 21 November 2025, the company released its results for the financial year ended 30 June 2025. Subsequently, the Company's annual general meeting took place on 17 December 2025 and all ordinary and special resolutions set out in the notice of meeting were passed.
On 29 December 2025, the company announced the extension of the memorandum of understanding ("MOU") for coal mine development with PowerChina for a further 24 months to 6 December 2027. The EPC contract for "Phulbari Coal Mining Infrastructure Construction and Overburden Stripping", announced on 11 March 2024, had evolved under this MOU and now GCM and PowerChina will work on other work packages and financing for developing the Phulbari coal mine.
Announcements after the Reporting Period
(January - March 2026)
After the reporting period the Company strengthened its financial position through two capital raisings. The proceeds of these placings provide additional working capital to support the Company's ongoing operations and to maintain the Phulbari Project in development readiness.
On 16 January 2026, the Company raised approximately £1.0 million before expenses through the placing of new ordinary shares at 6.0 pence per share.
On 11 February 2026, the Company completed a further placing raising approximately £1.25 million before expenses through the issue of new ordinary shares at 8.2 pence per share.
On 27 January 2026, the Company announced Non-Executive Director, Paul Shackelton, had been dismissed and that Non-Executive Director, Charlie Green, would assume the role of interim Non-Executive Chairman.
Financials
GCM incurred a loss after tax of £1,012,000 for the six months ended 31 December 2025 (31 December 2024: loss after tax of £1,302,000). The most significant expenditure during the period was pre-development (non-cash) expenditure, while administrative expenses for the six months ended 31 December 2025 were £411,000 (31 December 2024: £461,000) and capitalised project expenditure for the period was £194,000 (31 December 2024: £259,000).
On 16 January 2026, GCM announced that it had raised approximately £1.0 million (before expenses) by way of a placing of a total of 16,666,667 new ordinary shares of 1 pence each in the Company ("Ordinary Shares") at a price of 6.0 pence per new Ordinary Share. On 11 February 2026, GCM raised a further £1.25 million (before expenses) by way of a placing of a total of 15,244,000 new Ordinary Shares at a price of 8.2 pence per new Ordinary Shares. The net proceeds of the aforementioned fundraises will provide the necessary working capital to support GCM's ongoing operations. These funds will also be allocated to corporate overheads, legal and advisory costs, and general administrative expenses associated with managing the Company effectively. The net proceeds of the fundraises will help ensure that the Company is in the financial position to advance its broader strategic and project objectives.
Outlook
Global energy markets have entered a period of increased geopolitical uncertainty. The events surrounding the conflict involving Iran during early 2026 have demonstrated how quickly international energy supply chains can be disrupted, particularly where critical maritime chokepoints are involved.
For many energy-importing economies this environment has reinforced the importance of maintaining a diversified energy strategy that combines imported fuels with the development of domestic energy resources where appropriate.
Within Bangladesh the national discussion regarding energy security and the utilisation of domestic coal resources continues to evolve. The country has already invested significantly in coal-based power generation capacity but remains largely dependent on imported fuels to supply these plants.
Within this context the Phulbari Coal and Power Project remains uniquely positioned as a large-scale, development-ready domestic coal supply option capable of supporting Bangladesh's existing coal-fired power generation fleet.
The Directors remain appreciative of the continued support of the Company's shareholders and stakeholders and look forward to updating the market on further developments as they arise.
Charlie Green
Non-Executive Chairman
Interim Consolidated Income Statement
| 6 months ended 31 December 2025 unaudited £000 | 6 months ended 31 December 2024 unaudited £000 | Year ended 30 June 2025 audited £000 | ||
| Operating expenses | ||||
| Pre-development expenditure | (222) | (628) | (850) | |
| Exploration and evaluation costs | (28) | 41 | 69 | |
| Administrative expenses | (411) | (461) | (847) | |
| Operating loss | (661) | (1,048) | (1,628) | |
| Finance revenue | 6 | 12 | 20 | |
| Finance costs | (357) | (266) | (541) | |
| Loss before tax | (1,012) | (1,302) | (2,149) | |
| Taxation | - | - | - | |
| Loss and total comprehensive income for the period | (1,012) | (1,302) | (2,149) | |
| Earnings per share | ||||
| Basic loss per share (pence) | (0.3p) | (0.5p) | (0.7p) | |
| Diluted loss per share (pence) | (0.3p) | (0.5p) | (0.7p) | |
| Share capital £000 | Share premium account £000 | Share based payments not settled £000 | Accumulated losses £000 | Total £000 | |
| Balance at 1 July 2024 | 13,437 | 59,878 | 481 | (35,340) | 38,456 |
| Total comprehensive loss | - | - | - | (2,149) | (2,149) |
| Share issuances | 599 | 1,150 | - | - | 1,749 |
| Share issuance costs | - | (76) | - | - | (76) |
| Shares to be issued | - | - | 111 | - | 111 |
| Share based payments | - | - | 2 | - | 2 |
| Balance at 30 June 2025 | 14,036 | 60,952 | 594 | (37,489) | 38,093 |
| Total comprehensive loss | - | - | - | (1,012) | (1,012) |
| Share issuances | - | - | - | - | - |
| Shares to be issued | - | - | 222 | - | 222 |
| Share based payments | - | - | 1 | - | 1 |
| Balance at 31 December 2025 (unaudited) | 14,036 | 60,952 | 817 | (38,501) | 37,304 |
| Balance at 1 July 2024 | 13,437 | 59,878 | 481 | (35,340) | 38,456 |
| Total comprehensive loss | - | - | - | (1,302) | (1,302) |
| Share issuances | - | - | - | - | - |
| Shares to be issued | - | - | 628 | - | 628 |
| Share based payments | - | - | 1 | - | 1 |
| Balance at 31 December 2024 (unaudited) | 13,437 | 59,878 | 1,110 | (36,642) | 37,783 |
| Notes | 31 December 2025 unaudited £000 | 31 December 2024 unaudited £000 | 30 June 2025 audited £000 | |
| Current assets | ||||
| Cash and cash equivalents | 706 | 983 | 1,310 | |
| Receivables | 19 | 37 | 24 | |
| Total current assets | 725 | 1,020 | 1,334 | |
| Non-current assets | ||||
| Right of use assets | 6 | 11 | 15 | |
| Intangible assets | 3 | 44,520 | 44,069 | 44,326 |
| Total non-current assets | 44,526 | 44,080 | 44,341 | |
| Total assets | 45,251 | 45,100 | 45,675 | |
| Current liabilities | ||||
| Payables | 4 | (1,455) | (1,385) | (1,373) |
| Lease liabilities | (3) | (9) | (7) | |
| Borrowings | 5 | (6,488) | - | (6,198) |
| Total current liabilities | (7,946) | (1,394) | (7,578) | |
| Non-current liabilities | ||||
| Lease liabilities | (1) | - | (4) | |
| Borrowings | - | (5,923) | - | |
| Total non-current liabilities | (1) | (5,923) | (4) | |
| Total liabilities | (7,947) | (7,317) | (7,582) | |
| Net assets | 37,304 | 37,783 | 38,093 | |
| Equity | ||||
| Share capital | 6 | 14,036 | 13,437 | 14,036 |
| Share premium account | 6 | 60,952 | 59,878 | 60,952 |
| Other reserves | 817 | 1,110 | 594 | |
| Accumulated losses | (38,501) | (36,642) | (37,489) | |
| Total equity | 37,304 | 37,783 | 38,093 |
| 6 months ended 31 December 2025 unaudited £000 | 6 months ended 31 December 2024 unaudited £000 | Year ended 30 June 2025 audited £000 | ||
| Cash flows used in operating activities | ||||
| Loss before tax | (1,012) | (1,302) | (2,149) | |
| Adjusted for: | ||||
| Non-cash pre-development expenditure | 222 | 628 | 850 | |
| Non-cash finance costs | 357 | 266 | 541 | |
| Other non-cash expenses | 1 | - | 10 | |
| (432) | (408) | (748) | ||
| Movements in working capital: | ||||
| Decrease(increase) in operating receivables | 5 | (14) | (2) | |
| Increase/(decrease) in operating payables | 10 | 1 | (1) | |
| Cash used in operations | (417) | (421) | (751) | |
| Net cash used in operating activities | (417) | (421) | (751) | |
| Cash flows from investing activities | ||||
| Payments for intangible assets | (187) | (254) | (521) | |
| Payments for property, plant and equipment | - | - | - | |
| Net cash generated from investing activities | (187) | (254) | (521) | |
| Cash flows from financing activities | ||||
| Issue of ordinary share capital | - | - | 1,000 | |
| Share issue costs | - | - | (76) | |
| Interest paid | - | - | - | |
| Net cash from financing activities | - | - | 924 | |
| Total (decrease) in cash and cash equivalents | (604) | (675) | (348) | |
| Cash and cash equivalents at the start of the period | 1,310 | 1,658 | 1,658 | |
| Cash and cash equivalents at the end of the period | 706 | 983 | 1,310 | |
| 31 December 2025 unaudited £000 | 31 December 2024 unaudited £000 | 30 June 2025 audited £000 | ||
| Trade payables | 594 | 591 | 579 | |
| Related party accrued payable | 861 | 794 | 794 | |
| 1,455 | 1,385 | 1,373 | ||
| 31 December 2025 unaudited £000 | 31 December 2024 unaudited £000 | 30 June 2025 audited £000 | ||
| Short-term loan facility from related party | 6,488 | 5,923 | 6,198 | |
| 6,488 | 5,923 | 6,198 | ||
| GCM Resources plc Keith Fulton, Finance Director | Tel: +44 (0) 20 7290 1630 info@gcmplc.com www.gcmplc.com |
| Allenby Capital Limited Nominated Adviser and Joint Broker John Depasquale / Vivek Bhardwaj (Corporate Finance) Kelly Gardiner / Lauren Wright (Sales and Corporate Broking) | Tel: +44 (0)20 3328 5656 info@allenbycapital.com |
| Axis Capital Markets Limited Joint Broker Richard Hutchison/ Lewis Jones | Tel: +44 (0) 203 026 0320 |