REG - Great Southrn.Copper - Interim Results
28/12/2023 07:00
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RNS Number : 9843X Great Southern Copper PLC 28 December 2023
CERTAIN INFORMATION CONTAINED IN THIS ANNOUNCEMENT WOULD HAVE BEEN DEEMED
INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF MARKET ABUSE REGULATION
(EU) NO 596/2014 ("MAR") WHICH HAS BEEN INCORPORATED INTO UK LAW BY THE
EUROPEAN UNION (WITHDRAWAL) ACT 2018 UNTIL THE RELEASE OF THIS ANNOUNCEMENT.
28 December 2023
Great Southern Copper plc
("GSC" or the "Company")
Interim Results
Great Southern Copper plc (LSE: GSCU), the company focused on copper-gold and
lithium exploration in Chile, announces its results for the six months ended
30 September 2023.
Highlights:
Especularita
· Received results from mapping and sampling activity at various
prospect locations across the Especularita project.
· Assay results for rock chip samples at Victoria returned grades up
to 6.9% Cu and 1.85g/t Au
· Assay results for rock chip samples at Teresita returned grades up
to 5.97% Cu and 13.9g/t Au
· Stream sediment sampling survey was completed at Especularita
which set the stage for a regional follow-up mapping and sampling campaign
designed to identify new prospects
· Post period on 10 October 2023, announced the results of the
drone-magnetics survey at Especularita, which identified high grade Cu-Au
prospects, Abundante and Teresita as magnetic anomalies and began plans to
drill at these prospects
· Post period on 18 October 2023, received results from its
exploration programme at the Aurelia prospect at Especularita, delivering
another high-grade copper target into the pipeline, with assay grades up to
6.76% Cu
San Lorenzo
· Received the results of reconnaissance sampling at the newly
acquired Suyay prospect with results up to 4.13g/t Au and 1.75% Cu. Results
are indicative of potential porphyry-type mineralisation
Monti-Lithium project
· Expanded into lithium exploration by acquiring an option over the
Monti Lithium Project in Chile, with a total concession application area of
235km(2), exercisable for a total of US$2.26m (mainly payable 2026)
· Post period on 31 October 2023, expanded the total concession
application area of the Monti Lithium project to 33,100 ha, strategically
targeting areas which the Group believes have the potential lithium-rich brine
fluid-flow into the Salar de Atacama basin, enhanced by large-scale geological
structures
Corporate
· Completed a £1m funding before expenses in May 2023 through a
placing and subscription and convertible loan facility
· Announced the appointment of Martin Page as CFO and as a member of
the Board
· Post period on 23 November 2023, completed a fundraising through a
placing and subscription, to raise a total of £905,000 before expenses
Sam Garrett, Chief Executive Officer of Great Southern Copper, said: "It has
been very positive first half of the year as we continue to make strong
progress across our prospects and in particular at Especularita where our
exploration campaigns have delivered encouraging results and helped to
delineate promising prospects for further exploration. In addition to these
projects, during the period we also took our first foray into lithium with the
acquisition of an option over the Monti-lithium project, a highly prospective
project in a tier one jurisdiction within the world's second largest lithium
producing country, Chile. As the green energy transition continues to
progress, we expect to continue to see accelerating demand for critical
minerals such as copper and lithium and we believe this provides the ideal
economic context as we continue to advance our projects."
Enquiries:
Great Southern Copper plc
Sam Garrett, Chief Executive Officer +44 (0)20 4582 3500
SI Capital Limited
Nick Emerson +44 (0)14 8341 3500
Gracechurch Group
Harry Chathli, Alexis Gore, Henry Gamble +44 (0)20 4582 3500
Notes for Editors:
About Great Southern Copper
Great Southern Copper PLC is a UK-listed mineral exploration company focused
on the discovery of copper-gold and lithium deposits in Chile. The Company has
the option to acquire rights to 100% of two projects in the under-explored
coastal belt of Chile that are prospective for large scale copper-gold
deposits. In addition, the Company has the option to acquire rights to 100% of
a lithium project located in the Salar de Atacama district of Chile. Chile is
a globally significant mining jurisdiction being the world's largest copper
producer and the second-largest producer of lithium.
The two, early-stage Cu-Au projects comprise the San Lorenzo and Especularita
Projects, both located in the coastal metallogenic belt of Chile which hosts
significant copper mines and deposits, including Teck's Carmen de Andacollo
copper mine, and boasts excellent access to infrastructure such as roads,
power and ports. Significant historical small-scale and artisanal workings for
both copper and gold are readily evident in both exploration project areas.
The Company's Monti Lithium project is strategically located in the pre-Andean
region of Salar de Atacama which is Chile's premier lithium-producing region
with well-established lithium mining operations and infrastructure.
Great Southern Copper is strategically positioned to support the global market
for copper and lithium - both critical battery metals in the clean energy
transition around the world. The Company is actively engaged in exploration
and evaluation work programmes targeting both large tonnage, low to medium
grade Cu-Au and Li deposits as well as high-grade Cu-Au deposits.
Further information on the Company is available on the Company's website:
https://gscplc.com
INTERIM MANAGEMENT REPORT 30 SEPTEMBER 2023
During the six months to 30 September 2023, Great Southern Copper has made
excellent progress across both its Especularita and San Lorenzo projects,
where exploration work has shown highly promising results and has laid out
highly prospective targets for further drilling. The Company also added the
Monti-Lithium project to the Company portfolio, which the Company views as a
natural complement to its existing copper-gold projects. Additionally, the
Company completed a successful fundraise, as well as an additional one post
period, which raised a total of c$1.9m before expenses in order to fund the
Company's exploration efforts.
Great Southern Copper's projects are all located in Chile, a tier one mining
jurisdiction. The Especularita and San Lorenzo projects specifically are
located within Chile's underexplored coastal metallogenic belt, alongside
other major deposits including Teck's Carmen de Andacollo copper mine and
Pucobre's El Espino project. The Company's newly acquired Monti Lithium
Project is similarly well located within the Salar de Atacama, Chile's premier
lithium producing region.
Chile is the world's largest producer and exporter of copper, as well as the
second largest producer of lithium. With a long history of mining and metal
processing, the country boasts one of strongest economies in South America.
Not only does it enjoy a strong mining culture, but the country also benefits
from an experienced and educated mining workforce, first-class infrastructure
and a robust legal framework, which includes provisions for foreign companies
to own 100% of mining assets.
Especularita
Reconnaisance work at Especularita has been ongoing throughout the period,
including mapping and sampling, magnetics surveys and stream sediment
sampling. The work has aimed to delineate high-grade copper-gold targets
related to both porphyry-epithermal-skarn and IRGS type mineral systems.
The Company undertook and completed magnetics surveys at Especularita over the
last six months. This identified high grade Cu-Au prospects, Abundante and
Teresita, as magetic anomalies. It also identified mutliple NE-trending
targets within the Teresita magnetic anomaly corridor, as well as bullseye
anomalies that potentially represent breccia-pipe or pencil-porphyry type Cu
deposits. In addition, rock chip samples returned high grade Cu-Au grades up
to 3.39% Cu at Abundante and 13.7g/t Au and 7.22% Cu at Teresita.
In September 2023, the Company received results of its recently completed
stream sediment sampling survey which commenced in February 2023 and was
designed to provide broad-scale gold, base metal, and trace element
geochemistry across the Especularita project area. The results from the survey
defined multi-element zonation patterns within and surrounding the extensive
area of lithocap alteration and has identified targets for follow-up
prospect-scale Cu-Au exploration.
The Company is now planning to conduct Scout RC drilling at both the Teresita
(IRGS quartz-carbonate vein-breccia system) and Abundante (breccia-pipe
system) prospects. In addition, the Company will conduct detailed work on the
Colorada lithocap designed to define prospects for later drill-testing.
San Lorenzo
During the period, the Company received the results of reconnaissance sampling
at the newly acquired Suyay prospect, within the San Lorenzo project area,
with results up to 4.13g/t Au and 1.75% Cu. The anomalous geochemistry
combined with our early understanding of the geology and controls on
mineralisation now suggests that there is potential at Suyay for a high-level
gold-rich porphyry or intrusive-related system.
The Company is now planning to advance its exploration and target definition
work for large scale porphyry and IOCG type deposits at the San Lorenzo
Project. The Company has identified a number of large radiometric anomalies
potentially representative of porphyry-type silica-clay-sericite alteration
which it intends to target in the next period with regional mapping and
sampling programmes.
Monti Lithium
The Group secured rights to 100% ownership of the Monti Lithium Project
located in the Salar de Atacama, Chile's premier lithium producing region. The
Salar de Atacama is a tier 1 lithium production region with estimated pre-mine
resources greater than 6.0 Mt LiCO(3). Lithium is hosted in subterranean brine
solutions which are pumped to the surface, where the lithium is extracted via
evaporation processes producing a lithium carbonate (LiCO(3)) concentrate
product.
The Monti Project comprises 81 concession applications for a total combined
concession area of 235 km(2) (23,500 ha). The initial US$10,000 payment to
vendors was completed with further annual cash and share payments over 3 years
for a total consideration value of US$2.26m (£1.8m).
Post-period, the Company expanded the total concession application area of the
Monti Lithium project to 331 km2 (33,100 ha), strategically targeting areas
where the Company believes the fluid-flow of Li-rich brines into the Salar de
Atacama basin is enhanced by large-scale structures.
Over the coming months, GSC will conduct due diligence on the project and
prepare plans for its exploration programmes. Work will include
reconnaissance field trips to undertake surface sampling and mapping
programmes.
Corporate
During the period, GSC appointed Martin Page as CFO and a member of the Board
of Directors. Martin is an experienced CFO, predominantly in the natural
resources sector, with exposure to all elements of the value cycle including
exploration and operating assets. He brings with him extensive experience of
capital and debt markets, statutory and management reporting requirements and
detailed tax and treasury planning. Most recently he held the position of CFO
at Trident Royalties plc, an AIM quoted junior mining royalty company, where
he presided over an increase in the company's market cap from c.$40 million to
c.$200m.
GSC completed fundraises during the period, raising a total of £1,002,000,
through a placing and subscription and convertible loan facility, in order to
finance on-going exploration programmes. The Company raised £501,000 through
an oversubscribed conditional placing and subscription with existing and new
investors, with all directors of the Company participating in the placing. An
additional £501,000 was then raised through a convertible loan facility dated
15 May 2023, with Foreign Dimensions Pty Ltd, the Company's main shareholder
and the trustee of the Colin and Imelda Bourke Family Trust, the beneficiaries
of which are members of the Bourke family.
Post period the Company then raised an additional £905,000 through a
conditional placing and subscription. The fundraising was supported by
existing, institutional and new investors, together with the Company directors
and key senior geologists. The funds arising from this will be used to advance
the exploration and target definition efforts at Especularita and San Lorenzo,
as well as commencing exploration at the newly acquired Monti Lithium Project.
Risks and uncertainties
The Directors do not consider that the Company's principal risks and
uncertainties have changed since the publication of its annual report and
accounts for the financial year ended 31 March 2023 on 31 July 2023, which
contains a detailed explanation of the risks relevant to the Company and is
available at: https://gscplc.com/investors/documents-and-reports
(https://gscplc.com/investors/documents-and-reports)
Outlook
These six months have been an exciting period of activity for Great Southern
Copper. The Company continues to see strong exploration progress across its
prospects and looks forward to continuing to develop our pipeline of drill
ready targets at Especularita and San Lorenzo, as well as in beginning
exploration at the newly acquired, highly prospective Monti-Lithium Project.
The long-term market drivers for both copper and lithium remain robust, and
the Board believes Chile, which is the largest producer of copper and second
largest of lithium, is the ideal place to take advantage of the strong demand
environment. This is further supported by Chile's recent commitments to ramp
up national production over the next year to help meet global demand.
With three compelling projects located in a tier 1 jurisdiction, and the
Company well funded to advance its exploration campaigns, the Board looks
forward to 2024 with confidence and is excited to unlock what it believes to
be substantial potential within the portfolio.
Responsibility Statement
We confirm that to the best of our knowledge:
· The Interim Financial Statements have been prepared in accordance
with International Accounting Standard 34, 'Interim Financial Reporting' ('IAS
34'), as endorsed for use in the United Kingdom;
· The Interim Report gives a true and fair value of the assets,
liabilities, financial position and loss of the Group;
· The Interim Report includes a fair review of the information
required by DTR 4.2.7R of the Disclosure and Transparency Rules, being an
indication of important events that have occurred during the first six months
of the financial year and their impact on the set of interim financial
statements; and a description of the principal risks and uncertainties for the
remaining six months of the year; and
· The Interim Report includes a fair review of the information
required by DTR 4.2.8R of the Disclosure and Transparency Rules, being the
information required on related party transactions.
The Interim Report was approved by the Board of Directors and the above
responsibility statement was signed on its behalf by
Charles Bond, Chairman
28 December 2023
Forward looking statement
Certain statements in this announcement, are, or may be deemed to be, forward
looking statements. Forward looking statements are identified by their use of
terms and phrases such as "believe", "could", "should", "envisage",
"estimate", "intend", "may", "plan", "will", or the negative of those,
variations or comparable expressions, including references to assumptions.
These forward looking statements are not based upon historical facts but
rather on the Directors' current expectations and assumptions regarding the
Company's future growth, results of operations, performance, future capital
and other expenditures (including the amount, nature and sources of funding
thereof), competitive advantages, business prospects and opportunities.
Such forward looking statements reflect the Directors' current beliefs and
assumptions and are based upon information currently available to the
Directors. A number of factors could cause actual results to differ materially
from the results discussed in the forward looking statements, including risks
associated with vulnerability to general economic and business conditions,
competition, environmental and other regulatory changes, actions by government
authorities, the availability of capital markets, reliance on key personnel,
uninsured and underinsured losses and other factors, many of which are beyond
the control of the Company. Although any forward looking statements contained
in this announcement are based upon what the Directors believe to be
reasonable assumptions, the Company cannot assure investors that actual
results will be consistent with such forward looking statements.
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
Group Statement of Comprehensive Income
For the 6 months ended 30 September 2023
6 months to September 2023 6 months to September 2022
(Unaudited) (Unaudited)
£000 £000
Note
Continuing operations
Administrative expenses (602) (481)
Operating loss (602) (481)
Loss before taxation (602) (481)
Taxation - -
Loss for the year attributable to the owners of the Company (602) (481)
Other comprehensive income
Items that may be reclassified subsequently to
profit or loss:
Exchange rate differences on translation of foreign operations (7) 341
Total comprehensive income attributable to the owners of the Company
(609) (140)
Pence Pence
Earnings per share - basic and diluted 5 (0.247) (0.226)
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
Group Statement of Comprehensive Income
As at 30 September 2023
As at As at
30 September 2023 31 March
(Unaudited) 2023
Note £000 (Audited)
£000
Assets
Non-current assets
Intangible assets 6 2,895 2,479
Property, plant and equipment 1 2
Total non-current assets 2,896 2,481
Current assets
Trade and other receivables 206 190
Cash and cash equivalents 343 654
Total current assets 549 844
Total assets 3,445 3,325
Liabilities
Current Liabilities
Trade and other payables (357) (125)
Total liabilities (357) (125)
Net current assets 192 719
Net assets 3,088 3,200
Equity
Share capital 7 2,551 2,133
Share premium 3,235 3,176
Share based payment reserve 256 236
Foreign currency translation reserve (2) 5
Retained earnings (2,952) (2,350)
Total equity attributable to the owners of the Company 3,088 3,200
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
Group Statement of Changes in Equity
For the 6 months ended 30 September 2023
Share Foreign currency translation reserve
Share Share based £000
capital premium payment reserve Retained earnings
£000 £000 Total Equity
£000 £000 £000
As at 1 April 2022 2,128 3,176 140 (24) (1,072) 4,348
Loss for the period - - - - (481) (481)
Exchange rate differences on translation of foreign operations
- - - 341 - 341
Total comprehensive income for the period
- - - 341 (481) (140)
Transactions with shareholders:
Share based payments - - 52 - - 52
As at 30 September 2022 2,128 3,176 192 317 (1,542) 4,271
As at 1 April 2023 2,133 3,176 236 5 (2,350) 3,200
Loss for the period - - - - (602) (602)
Exchange rate differences on translation of foreign operations
- - - (7) - (7)
Total comprehensive income for the period
- - - (7) (602) (609)
Transactions with shareholders:
Issue of share capital 418 83 - - - 501
Shares issue costs - (24) - - - (24)
Share based payments - - 20 - - 20
As at 30 September 2023 2,551 3,235 256 (2) (2,952) 3,088
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
Group Statement of Cash Flows
For the 6 months ended 30 September 2023
6 months to 30 September 2023 6 months to
(Unaudited) 30 September
£000 2022
(Unaudited)
£000
Cash flows from operating activities
Loss for the period (602) (481)
Adjustments for:
Share based payments 20 52
Depreciation of property, plant and equipment 1 -
Working capital adjustments
(Increase)/decrease in trade and other receivables (40) 23
Increase/(decrease) in trade and other payables 152 (89)
Net cash outflow from operations (469) (495)
Cash flows from investing activities
Purchase of intangible assets (416) (297)
Purchase of property, plant and equipment - (2)
Net cash used in investing activities (416) (299)
Cash flows from financing activities
Issue of ordinary share capital 481 -
Amounts received from convertible loan 100 -
Net cash generated from financing activities 581 -
Net decrease in cash and cash equivalents (304) (794)
Exchange gains on cash and cash equivalents (7) 38
Cash and cash equivalents at the beginning of the period 654 2,752
Cash and cash equivalents at the end of the period 343 1,996
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
NOTES TO THE INTERIM FINANCIAL STATEMENTS
For the 6 months ended 30 September 2023
1. GENERAL INFORMATION
Great Southern Copper plc ('the Company') and its subsidiary's
(together 'the Group') principal activity is currently focused upon the
exploration for copper, gold and lithium in Chile. Further detail is covered
in the Interim Management Report.
The Company is a public limited company, which is listed on the
London Stock Exchange and incorporated and domiciled in England and Wales. The
address of its registered office is Salisbury House, London Wall, London,
United Kingdom, EC2M 5PS.
2. BASIS OF PREPARATION
These consolidated condensed interim financial statements for the
half-year reporting period ended 30 September 2023 have been prepared in
accordance with International Accounting Standard ('IAS') IAS 34 'Interim
Financial Reporting'. as issued by the International Accounting Standards
Board ('IASB') and as adopted for use in the United Kingdom ('UK'), the
Companies Act 2006 applicable to companies reporting under International
Financial Reporting Standards and applicable UK law.
The condensed consolidated interim financial statements contained in
this document do not constitute statutory accounts. In the opinion of the
Directors, the condensed consolidated interim financial statements for this
period fairly present the financial position, result of operations and cash
flows for this period. The statutory accounts for the year ended 31 March 2023
were prepared in accordance with UK-adopted International Accounting Standards
('IFRS') and have been delivered to the Registrar of Companies. The auditor's
report on those accounts was unqualified, but did draw attention to a material
uncertainty with regard to going concern that was in existence at the time of
the approval of those accounts. It did not contain a statement under Sections
498(2) or 498(3) of the Companies Act 2006.
Tax charged within the six months ended 30 September 2023 has been
calculated by applying the effective rate of tax which is expected to apply to
the Group for the year ending 31 March 2024 as required by IAS 34 'Interim
Financial Reporting'.
The financial statements have been prepared on the historical cost
basis. The financial statements are prepared in Sterling, which is the
functional currency and presentational currency of the parent Company.
Monetary amounts in these financial statements are rounded to the nearest
£000 unless otherwise stated.
The Board of Directors approved this Interim Financial Report on 28
December 2023.
STATEMENT OF COMPLIANCE
The condensed consolidated interim financial statements for the
period ended 30 September 2023 have not been audited or reviewed in accordance
with the International Standard on Review Engagements (UK) 2410 issued by the
Auditing Practices Board. The figures were prepared using applicable
accounting policies and practices consistent with those adopted in the
statutory annual financial statements for the year ended 31 March 2023. There
have been no new accounting policies adopted since 31 March 2023.
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
NOTES TO THE INTERIM FINANCIAL STATEMENTS
For the 6 months ended 30 September 2023
CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS
The preparation of the condensed consolidated interim financial
statements requires directors to make judgements, estimates and assumptions
that affect the application of accounting policies and the reported amounts of
assets and liabilities, income and expense. Actual results may differ from
these judgements and estimates.
In preparing these condensed consolidated interim financial
statements, the significant judgements made by management in applying the
Group's accounting policies and the key sources of estimation uncertainty were
the same as those that applied to the audited consolidated financial
statements for the year ended 31 March 2023.
GOING CONCERN
As at 30 September 2023, the Group's cash at bank amounted to £0.4m;
at the date of approving these condensed financial statements, the balance
amounted to £1.2m
The Board has reviewed the Group's cash flow forecast up to 31
December 2024, taking into account its current resources and its operational
objectives. The Board is satisfied that the cash reserves are sufficient to
finance both planned project expenditure and overheads. The Board continues to
monitor closely both its cash and operating costs and has taken into account
the resources available to it as at the date of signing this Report.
Accordingly, the Board continues to adopt the going concern basis for the
preparation of these financial statements.
3. FINANCIAL RISK MANAGEMENT AND FINANCIAL INSTRUMENTS
Risks and uncertainties
The Board continually assesses and monitors the key risks of the
business. The key risks that could affect the Group's medium-term performance
and the factors that mitigate those risks have not substantially changed from
those set out in the Group's 2023 Annual Report and Financial Statements, a
copy of which is available from the Group's website: www.gscplc.com
(http://www.gscplc.com) .
The key financial risks are market risk (including currency risk),
credit risk and liquidity.
4. SEGMENTAL REPORTING
Operating segments are reported in a manner that is consistent with
the internal reporting provided to the chief operating decision maker. The
chief operating decision maker has been identified as the Board. The Board is
responsible for allocating resources and assessing performance of operating
segments.
The Group has two reportable segments, exploration and corporate,
which are the Group's strategic divisions. For each of the strategic divisions
the Board reviews internal management reports on a regular basis.
The Group's reportable segments are:
Exploration: the exploration segment is presented as an aggregate of
all Chile licences held. Expenditure on exploration activities for each
licence is used to measure agreed upon expenditure targets for each licence to
ensure the licence clauses are met.
Corporate: the corporate segment includes the holding company costs
in respect of managing the group.
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
NOTES TO THE INTERIM FINANCIAL STATEMENTS
For the 6 months ended 30 September 2023
Segment result: 6 months to 30 September 2023 6 months to
(Unaudited) 30 September
£000 2022
(Unaudited)
£000
Exploration - Chile (197) (322)
Corporate - UK (405) (159)
Loss before tax (602) (481)
Taxation - -
Loss after tax (602) (481)
Segment assets and liabilities:
Non-current assets
6 months to Year ended
30 September 2023 31 March
(Unaudited) 2023
£000 (Audited)
£000
Exploration - Chile 2,896 2,481
Corporate - UK - -
Total 2,896 2,481
Total Assets
6 months to Year ended
30 September 2023 31 March
(Unaudited) 2023
£000 (Audited)
£000
Exploration - Chile 3,021 2,540
Corporate - UK 424 785
Total 3,445 3,325
Total Liabilities
6 months to Year ended
30 September 2023 31 March
(Unaudited) 2023
£000 (Audited)
£000
Exploration - Chile (45) (21)
Corporate - UK (312) (104)
Total (357) (125)
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
NOTES TO THE INTERIM FINANCIAL STATEMENTS
For the 6 months ended 30 September 2023
5. EARNINGS PER SHARE
Basic earnings per share is calculated by dividing the net income for
the period attributable to ordinary equity holders by the weighted average
number of ordinary shares outstanding during the period.
Diluted earnings per share amounts are calculated by dividing the
profit attributable to owners of the parent by the weighted average number of
ordinary shares in issue during the financial year, adjusted for the effects
of potentially dilutive options. The dilutive effect is calculated on the full
exercise of all potentially dilutive ordinary share options granted by the
Group, including performance-based options which the Group considers to have
been earned.
The calculations of earnings per share are based upon the following:
6 months to 30 September 2023 6 months to
(Unaudited) 30 September
£000 2022
(Unaudited)
£000
Loss for the period (602) (481)
Number Number
Weighted average number of shares in issue 244,075,421 212,593,736
Weighted average number of shares - basic and diluted 244,075,421 212,593,736
Pence Pence
Earnings per share - basic and diluted (0.247) (0.226)
Basic and diluted earnings per share are identical for the group as
the effect of the exercise of the share options in existence would be to
decrease the loss per share.
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
NOTES TO THE INTERIM FINANCIAL STATEMENTS
For the 6 months ended 30 September 2023
6. INTANGIBLE ASSETS
Exploration
Group assets
Cost £000
As at 1 April 2022 1,489
Additions 924
Exchange difference 66
As at 31 March 2023 2,479
Additions 373
Exchange difference 43
As at 30 September 2023 2,895
Carrying Amount:
At 30 September 2023 (Unaudited) 2,895
At 31 March 2023 (Audited) 2,479
Exploration projects in Chile are at an early stage of development
and there are no JORC (Joint Ore Reserves Committee) or non-JORC compliant
resource estimates available to enable value in use calculations to be
prepared.
The directors have undertaken an assessment of the following areas and
circumstances which could indicate the existence of impairment:
· The Group's right to explore in an area has expired, or will
expire in the near future without renewal.
· No further exploration or evaluation is planned or budgeted for.
· A decision has been taken by the Board to discontinue exploration
and evaluation in an area due to the absence or expected absence of a
commercial level of reserves.
· Sufficient data exists to indicate that the book value may not be
fully recovered from future development and production.
Following their assessment, the Directors concluded that no
impairment charge was necessary.
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
NOTES TO THE INTERIM FINANCIAL STATEMENTS
For the 6 months ended 30 September 2023
7. SHARE CAPITAL
Number of Shares in Issue
Authorised, issued and fully paid: Number £000
Ordinary shares of £0.01 as at 1 April 2022 212,476,100 2,125
Issued during the year 860,311 8
Ordinary shares of £0.01 as at 31 March 2023 213,336,411 2,133
Issued during the period 41,749,998 418
Total shares as at 30 September 2023 255,086,409 2,551
Share issues during the period
On 19 May 2023, by way of private placing, the Company issued
41,749,998 Ordinary Shares at 1.2p per share, raising £501,000 before costs
Details of shares issued in the year ended 31 March 2023 are provided
in the financial statements for that period.
Details of shares issued subsequent to the reporting date are
provided in note 10.
8. RELATED PARTY TRANSACTIONS
During the period payments in respect of the services of the Chief Executive
were made through Metal Ventures Inc totalling £49,569 (31 March 2023 -
£105,714).
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
NOTES TO THE INTERIM FINANCIAL STATEMENTS
For the 6 months ended 30 September 2023
9. CONTINGENCIES AND COMMITMENTS
The option agreements held by the Company in relation to the San Lorenzo and
Especularita projects give the Company the discretionary right to acquire the
relevant concessions, provided the annual option fees totalling US$125,000 due
by March 2024 specified in such agreements, have been paid in full. There are
no royalty, third party payments, or other obligations in favour of third
parties regarding the option payments or the concessions to which they relate.
The Company's commitments to meeting and finalising its purchase of the
mineral concessions under the Option Agreements, if it chooses to do so, are
summarised in the following table:
Especularita San Lorenzo
Date Payment Date Payment
01/03/2024 Final Payment US$ 1,100,000 01/06/2024 Quota US$ 50,000
Extension of final payment to 01/03/2025 US$ 100,000 01/06/2025 Final Payment US$ 1,610,000
Extension of final payment to 01/03/2026 US$ 100,000 Extension of final payment to 01/06/2026 US$ 100,000
Extension of final payment to 01/06/2027 US$ 100,000
To acquire 100% of the Especularita project a total payment of US$1.5m is
required (of which US$400,000 has been paid to date) with the final payment
due before 01/03/2024. The Company may defer the final payment for a period of
2 years at a cost of US$100,000 per additional year. To acquire 100% of the
San Lorenzo project a total payment of US$2.0m is required (of which
US$340,000 has been paid to date), with a quota of US$50,000 due before
01/06/2024 and the final payment due before 01/06/2025. The Company may defer
the final payment for a period of 2 years at a cost of US$100,000 per
additional year.
In September 2023, the Company signed a binding term sheet which allows the
Company to earn 100% of the mining rights of the Monti lithium project once
its concessions are granted. Details of the related commitments are given in
the table below:
Monti
Date Cash US$ Value in GSC equity US$
01/03/2024 US$50,000 -
01/09/2024 US$50,000 US$50,000
01/09/2025 US$50,000 US$50,000
01/09/2026 US$1,000,000 US$1,000,000
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
NOTES TO THE INTERIM FINANCIAL STATEMENTS
For the 6 months ended 30 September 2023
10. EVENTS AFTER THE REPORTING PERIOD
On 23 November 2023 the Company announced a conditional placing and
subscription raising £905,000 before expenses. A total of 40,222,206 new
ordinary shares of 1p each at £0.0225 per share were admitted to listing on
the standard listing segment of the Official List on the 14 December 2023
following the publication of a short-form prospectus.
In addition to the placing and subscription the Company also issued 47,880,596
new ordinary shares of 1p on 14 December 2023:
· 4,436,834 new ordinary shares at £0.012 per share (in the case
of Sam Garrett) and at £0.0139, £0.0145 and £0.0227 (in the case of Charles
Bond, Chairman, being quarterly VWAPs) and at £0.227 (in the case of Paul
Williams, former CFO), pursuant to an arrangement between the Company and
these individuals pursuant to which some or all of their respective salary has
been sacrificed and accrued;
· 1,693,767 new ordinary shares at £0.012 per share as part
payment to the vendors of the San Lorenzo project under an option agreement
with the Company;
· 41,749,995 new ordinary shares at £0.012 per share, arising on
conversion of a convertible loan totalling £501,000 pursuant to the agreement
entered into between the Company and its major shareholder Foreign Dimensions
Pty Ltd dated and announced on 15 May 2023. The loan had been fully drawn by
tranches during September and October 2023 with £100,000 drawn as at 30
September 2023, included in trade and other payables. The loan was interest
free, unsecured and converted automatically on issuance of the prospectus.
Following Admission of the placing and subscription shares and the additional
shares, the total number of ordinary shares in the Company is 343,189,211.
On 19 September 2023, the Company conditionally agreed, subject to admission,
to grant 22.5 million options exercisable at 1p per share to the Directors and
employees of the Company. Conditional upon continuing employment with the
Company, the options will vest in equal tranches over 3 years from grant.
On 20 December 2023, 148,327,850 10p warrants issued in respect of the
acquisition of Pacific Trends Resources Chile SpA and as part of the initial
public offering of the Company expired following the end of the exercise
period.
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