REG - GreenRoc Mining PLC - Interim Results

GreenRoc Strategic MaterialsAnnouncement

10/08/2022 07:00

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RNS Number : 4767V  GreenRoc Mining PLC  10 August 2022

GreenRoc Mining Plc / EPIC: GROC / Market: AIM / Sector: Mining

 

10 August 2022

 

GreenRoc Mining Plc

 

INTERIM RESULTS FOR THE SIX MONTHS TO 31 MAY 2022

 

The Board of Directors of GreenRoc Mining Plc (the "Company" or "GreenRoc") is
pleased to report the Company's interim results for the six months ended 31
May 2022. These incorporate the results of its subsidiary companies Obsidian
Mining Limited ("OML"), White Eagle Resources Limited ("WERL"), and White Fox
Resources Limited ("WFRL") (together, the "Subsidiary Companies", collectively
with GreenRoc, the "Group").

 

Highlights

 

·     Maiden JORC Resource announced in March 2022 at Amitsoq Island of
8.3 million tonnes (Mt) at an average grade of 19.75% Cg.

·      Exploration Target for Amitsoq Island deposit increased to 5-15
Mt at a grade range of 18-22% Cg, and for Kalaaq deposit increased to 6-10 Mt
at a grade range of 17-33% Cg.

·      Drilling programme underway at Amitsoq targeting significant
increase in JORC Resource.

·      Following 2021 drill programme at Thule Black Sands (TBS),
revised resource assessment in respect of current JORC Resource of 19Mt at
8.9% in-situ ilmenite expected in coming weeks.

·      Environmental and Social Impact Assessment consultants engaged to
commence work on the EIA and SIA studies necessary for future exploitation
licence applications.

·      Bathymetric surveying being undertaken at TBS, to provide data
for planning of port facilities.

·      Stefan Bernstein, a senior geologist with considerable experience
in Greenland mining sector, appointed CEO in May 2022.

 

CEO Stefan Bernstein said: "In my first interim results as CEO, I am pleased
to be able to report on the strong progress made during the period.
GreenRoc was admitted to AIM just less than a year ago with the objective of
becoming a key supplier of critical, high-demand, high-value minerals and I
believe the Company has made great strides towards this goal.  Amitsoq has
not only been established as one of the highest-grade graphite deposits
globally, but also a project with extensive resource potential, as indicated
by the recently enlarged Exploration Targets.  Based on the encouraging
results to date, drilling is now underway to further upgrade and increase the
current Maiden JORC Resource and we look forward to keeping the market updated
with the results of this as they become available.

"We are also looking forward to receiving, and sharing with the market, the
long-awaited results from the 2021 drilling campaign at TBS, which are
expected in the coming weeks. We are hopeful that these will lead to an
upgraded mineral resource and provide the foundation for feasibility
studies.  In support of this, we have finalised a summer/autumn field work
programme due to commence this quarter, with the objective of fast-tracking
TBS to mine development status, a milestone we are also focussed on achieving
at Amitsoq.

"The remainder of the year is accordingly expected to be extremely active,
particularly as alongside the 2022 field season, additional work programmes
are being undertaken to support exploitation permit applications."

 

Since its IPO in September 2021, the Company's focus has been on analysing and
interpreting the drill core and other samples collected during the 2021 field
season at GreenRoc's flagship projects, Amitsoq and TBS and on the design and
preparation for the 2022 field season.

The 2022 drilling programme at Amitsoq Island has commenced, as has the field
programme at TBS which is focused on environmental, archaeological and
bathymetric surveying. The archaeological study is a required part of the
exploitation permitting process and the bathymetric survey provides water
depth data for planning of port facilities.  GreenRoc management will also be
visiting both sites in September as part of the Company's evaluation of future
infrastructure and mineral processing locations.

Amitsoq Graphite Project

Following the completion of the 2021 drill programme, the Company was able to
announce a maiden JORC Resource at the Amitsoq Island deposit of 8.3 million
tonnes (Mt) at an average grade of 19.75% Graphitic Carbon (Cg), giving a
total graphite content of 1.63 million tonnes.

In addition, the Exploration Target for the Amitsoq Island deposit has
increased to a tonnage range of 5-15 Mt at a grade range of 18-22% Cg, with
the deposit open along strike (predominantly to the north) and down dip to the
west.

At the Kalaaq mainland project area, a short distance to the south of Amitsoq
Island, the channel and field sampling work in 2021 led to an increase in the
Exploration Target at that site to a range of 6-10 Mt at a grade range of
17-33% Cg.

During July 2022, the Company announced that it was granted an exploration
licence over a new area, covering a potential southerly extension to the
Kalaaq deposit as well as several known graphite showings which are separate
from both the Amitsoq Island and Kalaaq deposit.  Exploration of these sites
is being carried out by the Company's geologists during the present field
campaign.

Thule Black Sands (TBS) Ilmenite Project

During 2021, a 249-hole drilling campaign was completed at TBS, with assay
results and a revised Resource assessment expected in the coming weeks.

EIA and SIA Work

During 2022, the Company has appointed consultants to progress the work which
will be necessary to move both Amitsoq and TBS into the development stage and
to the point where formal applications for exploitation licences can be
submitted to the Greenland Government. BioApp Greenland, a
Danish/Greenlandic-based contractor and environmental expert with extensive
operational experience in Greenland, has been engaged to undertake the second
year of baseline studies at both Amitsoq and TBS and this will feed into its
work on the Environmental Impact Assessment ("EIA") for both projects.
Meanwhile, NIRAS A/S, a Danish/Greenlandic multi-disciplinary engineering
consultancy, also with extensive Greenland experience, will lead a series of
workshops with key stakeholders and interest groups as part of its Social
Impact Assessment ("SIA") work at TBS.

In addition, the international mining consultancy SLR Consulting has been
engaged to undertake preliminary studies on mining methods and processing
plant options for both TBS and Amitsoq. The results of these studies will also
be fed into the Company's EIA and SIA work.

Obtaining the approval of the Greenlandic authorities to an EIA and an SIA is
a fundamental condition to the Company being able to obtain exploitation
licences for both projects, and as such this work is expected to be a key
focus for the Company over the next 12 months or so.

Corporate

Stefan Bernstein was appointed CEO with effect from 1 July 2022. Stefan is a
Danish geologist with over 30 years' experience in Greenland's mining sector,
spanning both corporate and governmental advisory roles, and as such he brings
a very strong knowledge and understanding of the country and its mineral
wealth.

 

Financial Results

 

The Group made a loss attributable to equity holders of the parent for the
period, after taxation, of £484k (Period ended Nov 2021: £306k). GreenRoc
Mining Plc was incorporated in March 2021, but activity only commenced on 28
September 2021, when the Company acquired Alba's Greenland mining portfolio in
conjunction with its IPO and Admission to AIM. Since then, corporate
overheads, consisting primarily of salaries and professional and listing
costs, have been expensed as incurred, while exploration expenditure has been
capitalised as an intangible asset in line with the Group's accounting policy.

 

At the end of the reporting period, the Group's cash was £1.8 million, a net
cash outflow of £1.5 million, primarily consisting of exploration expenditure
of £0.8 million, cash administration costs of £0.4 million, and movement in
working capital of £0.3 million.

 

The basic and diluted loss per share was 0.43 pence (Nov 2021: loss of 1.11
pence).

 

This announcement contains inside information for the purposes of the UK
Market Abuse Regulation and the Directors of the Company are responsible for
the release of this announcement.

 

Forward Looking Statements

This announcement contains forward-looking statements relating to expected or
anticipated future events and anticipated results that are forward-looking in
nature and, as a result, are subject to certain risks and uncertainties, such
as general economic, market and business conditions, competition for qualified
staff, the regulatory process and actions, technical issues, new legislation,
uncertainties resulting from potential delays or changes in plans,
uncertainties resulting from working in a new political jurisdiction,
uncertainties regarding the results of exploration, uncertainties regarding
the timing and granting of prospecting rights, uncertainties regarding the
Company's ability to execute and implement future plans, and the occurrence of
unexpected events. Actual results achieved may vary from the information
provided herein as a result of numerous known and unknown risks and
uncertainties and other factors.

 

For further information, please contact:

 

 GreenRoc Mining Plc                              +44 20 3950 0725

 Stefan Bernstein, CEO

 Cairn Financial Advisers LLP (Nomad)             +44 20 7213 0880

 James Caithie/Sandy Jamieson/Louise O'Driscoll

 OvalX (Broker)                                   +44 20 7392 1494

 Tom Curran / Thomas Smith

 

 

 

UNAUDITED CONSOLIDATED INCOME STATEMENT

FOR THE SIX MONTHS ENDED 31 MAY 2022

 

 

                                                                                      Unaudited                      Unaudited                             Audited Period from 17 March to 30 Nov 2021

                                                                                      Six months ended 31 May 2022   Period from 17 March to 31 May 2021
                                                                                      £'000                          £'000                                 £'000
 Revenue                                                                              -                              -                                     -
 Cost of sales                                                                        -                              -                                     -
 Gross profit                                                                         -                              -                                     -
 Administrative expenses                                                              (483)                          -                                     (305)
 Operating loss                                                                       (483)                          -                                     (305)
 Finance expense                                                                      (1)                            -                                     (1)
 Loss for the period before tax                                                       (484)                          -                                     (306)
 Taxation                                                                             -                              -                                     -
 Loss for the period from continuing operations                                       (484)                          -                                     (306)

 Attributable to:
 Equity holders of the parent                                                         (484)                          -                                     (306)

 Earnings per ordinary share attributable to the ordinary equity holders of the
 parent
 Basic and diluted (pence)                                                            (0.43)                         -                                     (1.11)

 

 

 

UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 31 MAY 2022

 

 

                                  Unaudited     Unaudited     Audited Year 30 Nov 2021

                                  31 May 2022   31 May 2021
                                  £'000         £'000         £'000
 Non-current assets
 Intangible fixed assets          9,036         -             8,259
 Total non-current assets         9,036         -             8,259

 Non-current liabilities
 Deferred tax                     (1,004)       -             (1,004)
 Total non-current liabilities    (1,004)       -             (1,004)

 Current assets
 Trade and other receivables      101           -             64
 Cash and cash equivalents        1,805         -             3,269
 Receivable from parent entity    -             50            -
 Total current assets             1,906         50            3,333

 Current liabilities
 Trade and other payables         (190)         -             (482)
 Payable to parent entity         (75)          -             (52)
 Total current liabilities        (265)         -             (534)

 Net current assets               1,641         50            2,799

 Net assets                       9,673         50            10,054

 Capital and reserves
 Share capital                    161           50            161
 Share premium                    10,033        -             10,033
 Share-based payment reserve      214           -             166
 Retained earnings                (735)         -             (306)

 Total equity                     9,673         50            10,054

 

UNAUDITED CONSOLIDATED CASH FLOW STATEMENT

FOR THE SIX MONTHS ENDED 31 MAY 2022

 

                                                         Unaudited                      Unaudited                             Audited Period from 17 March to 30 Nov 2021

                                                         Six months ended 31 May 2022   Period from 17 March to 31 May 2021

 Cash flows from operating activities
 Operating loss                                          (483)                          -                                     (305)
 Adjustments for:
 Share-based payment charge                              103                            -                                     39
 Bonuses settled in shares                               -                              -                                     45
 (Decrease)/increase in creditors                        (292)                          -                                     202
 Increase in debtors                                     (37)                                                                 (64)
 Net cash used in operating activities                   (709)                          -                                     (83)

 Cash flows from investing activities
 Capitalised exploration expenditure                     (777)                          -                                     (475)
 Net cash used in investing activities                   (777)                          -                                     (475)

 Cash flows from financing activities
 Proceeds from issue of shares                           -                              -                                     5,076
 Cost of issue                                           -                              -                                     (800)
 Increase in/(repayment of) loan from parent             23                             -                                     (448)
 Finance expense                                         (1)                            -                                     (1)
 Net cash generated from financing activities            22                             -                                     3,827

 Net (decrease)/increase in cash and cash equivalents    (1,464)                        -                                     3,269
 Cash and cash equivalents at beginning of period        3,269                          -                                     -
 Cash and cash equivalents at end of period              1,805                          -                                     3,269

 

 

NOTES TO THE HALF-YEARLY FINANCIAL INFORMATION

 

1.            Basis of preparation

 

The Group consolidates the financial statements of the Company and its
subsidiary undertakings.

 

The financial information has been prepared under the historical cost
convention in accordance with UK-adopted International Accountant Standards
("UK-adopted IAS") as they apply to the Group for the six months ended 31 May
2022.

 

2.            Taxation

No charge for corporation tax for the period has been made due to the expected
tax losses available.

 

3.            Loss per share

Basic loss per share is calculated by dividing the loss attributable to
ordinary shareholders of £484k (May 2021: nil; November 2021: loss of £306k)
by the weighted average number of shares of 111,200,001 (May 2021: 5,000,000;
November 2021: 27,531,396) in issue during the period. The diluted loss per
share calculation is identical to that used for basic loss per share as the
exercise of warrants would have the effect of reducing the loss per ordinary
share and therefore is not dilutive under the terms of Financial Reporting
Standard 22 "Earnings Per Share".

 

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