REG-IMC Exploration Group Plc: Annual Financial Report
31/10/2024 12:15
THE DIRECTORS OF IMC EXPLORATION GROUP PLC CONSIDER THIS ANNOUNCEMENT TO
CONTAIN INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF REGULATION (EU)
NO. 596/2014 OF THE EUROPEAN PARLIAMENT AND THE COUNCIL OF 16 APRIL 2014 ON
MARKET ABUSE AS IT FORMS PART OF RETAINED EU LAW AS DEFINED IN THE EUROPEAN
UNION (WITHDRAWAL) ACT 2018 (THE "MARKET ABUSE REGULATION"). UPON THE
PUBLICATION OF THIS ANNOUNCEMENT THE INSIDE INFORMATION IS NOW CONSIDERED TO
BE IN THE PUBLIC DOMAIN.
FINAL RESULTS FOR THE YEAR 1st JULY 2023 TO 30th JUNE 2024
IMC Exploration Group Public Limited Company
(“IMC” or the “Company”)
Chairman’s Statement
IMC Exploration Group Public Limited Company
for the year ended 30 June 2024
The Directors of IMC Exploration Group plc (“IMC” or the “Company”)
are pleased to present the final financial results for IMC for the twelve
months to 30th June 2024.
The year to end June 2024 has been very important and exciting for IMC and its
shareholders culminating in approval of the acquisition of MVI Ireland s.r.o.,
the owner of Assat LLC that owns the Karaberd Mine, a gold mine located in
Lori Marz, northern Armenia. This acquisition, as approved at the EGM which
took place on 26th October 2023, will be transformative for IMC. The Company
is no longer just a minerals exploration company but a mining company as
well. The acquisition of the Karaberd Mine for which an extension of licence
has been applied for to be followed by an application to extend the mining
licence area and the construction of a metals extraction facility, for which a
virtual model has been prepared(link:
https://www.youtube.com/watch?v=02lA0Fdyg58) and for which planning
application documents have also been prepared along with the scheduling of the
related public meeting, means a busy number of months ahead for the Company in
Armenia. The production facility which will be owned by associates of
IMC’s major investor Mineral Ventures Invest spol. s.r.o. (“MVI”) will,
when completed, be leased by IMC with an option to purchase, and will serve
the existing strategic direction of IMC, while expanding the geographic scope
of its operations. Indeed, the importance of such a production facility is
further emphasised by the fact that due to a lack of ore processing facilities
in Armenia over the last year, (both GPM Ararat and Masis plant closed for
upgrades and the Arjut plant just started production of their own ore in March
2024), Assat LLC, IMC’s wholly owned subsidiary through its subsidiary MVI
Ireland s.r.o. that operates the Karaberd mine, has stock piled c. 18,000 tons
of ore grading on average 1.8gt – 2.00gt with c. 800 tons of that grading on
average 22g/t waiting to be processed.
The successful acquisition of MVI Ireland s.r.o. has also led to a
strengthening of the IMC Board with the addition of two new directors namely
Vahagn Marukhyan, appointed as Group CFO, who is based in Yerevan, Armenia,
where for 14 years he previously held senior positions at Ernst & Young
latterly as a head of the Strategy and Transactions practice and Gagik
Gevorgyan who is a leading Armenian geologist with over 45 years of experience
in mining and quarrying. Gagik has previously served as Director of Central
Geological Expedition in Armenia and Chief Geologist to a number of mining
companies in Armenia. Glenn Millar one of the founding members of the Company
retired from the Board and we wish him well in his retirement and thank him
for all his valuable contributions over the years.
IMC has continued to develop relationships in Armenia at national and local
level and has developed a pipeline of other prospective projects, including
prospective Au, Cu and Ag projects, which IMC hopes to finalise in the next
number of months. In that regard, as part of the Framework Agreement
concluded between IMC and MVI, and announced on 15th April 2021, there was
provided a clause that enabled MVI to increase its shareholding from 51% up to
59.17% subject to introducing into the Company projects that would increase
the IMC market capitalisation up to £200m. One such project relates to the
Ferro Group LLC (”FG”) South Eastern VLAD deposit within the Tukhmanuk ore
field of the Aragatsotn region in Armenia. AMC Consultants (Perth,
Australia) have been contracted by MVI to carry out a 1,000m drill program and
should the results prove an economic resource exists then MVI have the option
to acquire a 60% stake in the FG which would be on-boarded to IMC.
Armenia as a country, is on solid track of economic expansion, with the GDP
growth still around 8% in 2023 and strong inflow of Foreign Direct Investment
to the country. The Armenian dram (AMD) continues to be the strongest
currency in the world. Strengthening against the Euro by about 50% since Dec
2000 (640 to 420 as of June 2024) and 28% against the USD. This clearly
reflects growing international confidence in Armenia's market. Aside from
Armenia’s recent geopolitical shift, there is growing optimism that Armenia
will become one of the new EU candidates, in the context of the EU’s
eastward expansion – Ukraine, Georgia, Moldova, with Yerevan’s plans for a
democratic EU entry referendum planned in 2025. Once the Azerbaijan –
Armenia long awaited Peace Agreement will be concluded, this should also have
a positive economic impact, with further foreign investment inflow and
confidence, especially from Armenia’s business diaspora which is c. three
times the current population in Armenia.
Because of the strong economic and geopolitical outlook for Armenia, and
IMC’s strong expectations of growth of its business in Armenia, IMC, with
the help of its advisors Grant Thornton in Yerevan, have commenced
preparations such that by mid-2025 IMC aims to achieve a dual-listing of
IMC’s shares to trade on the developing AMX – local Armenian Stock
Exchange, in order to increase transparency, investors awareness as well as
capital flow and also, given IMC’s proposed eco-production facility, to be
seen as Armenia’s first “green miner” of selected projects and to do
business with other local mining companies by providing access to a
non-cyanide gold extraction processor as the capacity of its new production
facility is increased.
IMC’s Irish Projects
IMC continues with its gold and copper exploration programmes in South East
Ireland.
IMC was very pleased to announce, in March 2024, the assay of its results from
a drillhole at its Boley project on PL 2551, Co. Wexford, Ireland where
Drillhole 24-2551-01, which was designed to test the interpreted strike extent
of the two zones of gold mineralization 150m to the northeast. The drillhole
intersected both mineralized zones and returned values of 1m grading 5.8g/t Au
from 90.5 – 91.5m in the upper zone and 1m grading 1.1g/t Au from 139.5 –
140.5m in the lower zone. Background gold values are present throughout both
zones, which are interpreted as shear zones, and are considered prospective
for orogenic style gold mineralization. The drillhole reached a depth of
172.5m. Given the encouraging results from the drilling on PL2551 along with
the up to three potential projects to be associated with IMC’s Avoca PL’s,
set out below, it was decided that IMC should focus its investment in the
Avoca PL’s and PL2551 and accordingly IMC gave up PL’s 1199 and 1200.
Avoca Projects: Copper is an important part of the green energy
transition. Previous production from the Avoca Mine is estimated to have
totalled 16Mt grading c. 0.6% Cu from banded, vein and disseminated sulphides
hosted by the upper Ordovician Duncannon Group. The total in situ copper
resource at Avoca is believed to have exceeded 100Mt at 0.2% Cu (Sheppard,
2007). IMC believes, given current Copper prices (US$9,600 tonne), that
there is still a possibility to develop a copper mine in the region, and will
carry out further drilling to assess the opportunity.
IMC has a mineral-rich supply of spoils and tailings with an inferred Mineral
Resource Estimate (MRE) showing, amongst other minerals, 2.6k tonnes copper
contained in the 1.87m tonnes spoils and tailings that are above surface.
This MRE also established a resource of c. 20,000 ounces of gold and 600,000
oz’s of silver along with other metals on part of the spoils and tailings
from the historic East Avoca Mine. At current metal prices for the gold,
silver, and copper this equates to c. £80m.
The Irish government previously commissioned a feasibility study in regard to
remediation of the Avoca spoils and tailings site which extends to c. 155
acres, and the European Commission also considers remediation of such sites to
be a priority as set out in the EU Nature Restoration Law that seeks to set
multiple binding restoration targets and obligations across a broad range of
ecosystems of which 20% are required to be restored by 2030.
In that regard and arising from meetings IMC has had with the China National
Geological Mining Corporation (“CGM”) who have significant experience in
remediation of such sites, IMC had commissioned a drone survey of the Avoca
site which was forwarded to CGM along with other data. This was followed up
by a visit to our Avoca site by CGM and an associated company to further
assess the prospects for the site. All parties agreed that there were indeed
three inter-related projects that could be developed as follows:
- a project to extract metals from the spoils and tailings
and thereby reduce the seepage of toxic metals into the water table and nearby
river.
- a project to remediate the c.155-acre site and convert to
a tourist park or at least a wooded park.
- a project to assess the economic viability of a copper
mine in the region.
Following completion of the visit of CGM’s team of 9 people, that included
their Chairman and Managing Director, IMC was pleased to complete an MOU with
CGM setting out how we will advance these projects. Furthermore, given the
EU Nature Restoration Law, IMC sees great potential in the remediation aspect
of mining and intends to develop this as an important future component of its
business.
There is no doubt that the years ahead will offer great opportunities to IMC
and having developed strong relationships/partnerships at both the technology
and professional level IMC intends to be in a position to take advantage of
these.
Eamon P. O’Brien,
Executive Chairman,
Dublin, 31st October 2024
Enquiries:
Keith, Bayley, Rogers & Co. Limited Brinsley Holman: +44 7776 30 22 28 Brinsley.Holman@kbrl.co.uk Stephen Clayson: +44 7771 871 847 / Stephen.Clayson@kbrl.co.uk
IMC Exploration Group plc Kathryn Byrne: +353 85 233 6033
IMC Exploration Group Public Limited Company
Consolidated Statement of Comprehensive Income
for the year 1st July 2023 to 30th June 2024
Continuing Operations
Jun'24 Jun’23
Revenue 1,524,000 -
Cost of Sales (828,097) -
Gross Profit 695,903 -
Administration Costs (834,747) (324,917)
Operating Profit /(loss) for the period (138,845) (324,917)
Other Income 104,000 -
Amount written off Intangible Assets - -
Amount written off investment - -
Profit / (Loss) for period before tax (34,845) (324,917)
Income tax expenses (112,402) -
Total comprehensive loss for the period (147,247) (324,917)
Loss attributable to:
Equity holders of the Company (147,247) (324,917)
Total Comprehensive Loss attributable to:
Equity holders of the Company (147,247) (324,917)
Earnings per share
From continuing operations
Basic and Diluted profit per share (cent) (0.02) (0.10)
All activities derived from continuing operations. All losses and total
comprehensive losses for the period are attributable to the owners of the
Company.
The Company has no recognised gains or losses other than those dealt with in
the statement of comprehensive income.
The financial statements were approved by the Board of Directors on 31st
October 2024, and signed on its behalf by:
On behalf of the board
Eamon O’Brien Andrew Laz Fleming
Director Director
The Directors of IMC, after due and careful enquiry, accept responsibility for
the contents of this announcement.
IMC Exploration Group Public Limited Company
Consolidated Statement of Financial Position
As at 30th June 2024
Jun'24 Jun’23
Assets
Intangible assets 4,078,889 640,291
Property, plant and equipment 138,472 946
Goodwill 522,913 -
Total Non-Current Assets 4,740,274 641,237
Current Assets
Inventory 384,000 -
Trade and other receivables 2,969,899 9,045
Cash and cash equivalents (29,600) 101,018
Total Current Assets 3,324,299 110,063
Total Assets 8,064,573 751,300
Equity
Share Capital 723,190 364,384
Share premium & Capital 9,959,356 4,253,642
Retained deficit (4,970,519) (4,823,272)
Attributable to owners of the Company 5,712,028 (205,246)
Total Equity 5,712,028 (205,246)
Liabilities – Current
Trade and other payables 853,179 294,260
Current tax liabilities 609,646 -
Total Liabilities-Current 1,462,825 294,260
Liabilities – Non-Current
Loan 889,721 662,286
Total Equity and Liabilities 8,064,573 751,300
The financial statements were approved by the Board of Directors on 31st
October 2024, and signed on its behalf by:
On behalf of the board
Eamon O’Brien Andrew Laz Fleming
Director Director
The Directors of IMC, after due and careful enquiry, accept responsibility for
the contents of this announcement.
IMC Exploration Group Public Limited Company
Consolidated Statement of Changes in Equity
for the period 1st July 2023 to 30th June 2024
Share Capital € Share Premium € Other Reserves € Retained Losses € Total €
Balance at 30 June 2022 349,589 4,164,633 - (4,498,355) 15,867
Total comprehensive income for the period
Loss for the period - - - (324,917) (324,917)
Total comprehensive income for the period - - - (324,917) (324,917)
Transactions with owners, recorded directly in equity contributions and distributions to owners
Shares issued 14,795 92,009 - - 106,804
Share issue costs - (3,000) - - (3,000)
Total transactions with owners 14,795 89,009 - - 103,804
Balance at 30 June 2023 364,384 4,253,642 - (4,823,272) (205,246)
Total comprehensive income for the period
Loss for the period - - - (147,247) (147,247)
Total comprehensive income for the period - - - (147,247) (147,247)
Transactions with owners, recorded directly in equity contributions and distributions to owners
Shares issued 358,807 4,565,176 - - 4,923,983
Capital Contributions & Translation Reserve - 1,140,538 - 1,140,538
Share issue costs - - - - -
Balance at 30 June 2024 723,191 8,818,818 1,140,538 (4,970,519) 5,712,028
The financial statements were approved by the Board of Directors on 31st
October 2024, and signed on its behalf by:
On behalf of the board
Eamon O’Brien Andrew Laz Fleming
Director Director
The Directors of IMC, after due and careful enquiry, accept responsibility for
the contents of this announcement.
IMC Exploration Group Public Limited Company
Consolidated Statement of Cash Flows
for the period 1st July 2023 to 30th June 2024
Jun'24 Jun’23
Cash flows from operating activities
Profit /(Loss) for the year (147,247) (324,917)
Adjustments for:
Other Expenses (23,000) -
Income Tax recognised in profit and loss 172,000 -
Depreciation 346,571 904
Cash from operations before changes in working capital 348,324 (324,013)
Movement in trade and other receivables (1,745,855) 1,942
Movement in trade inventories 70,000 -
Movement in trade and other payables 617,770 299,441
Net cash flow from operating activities (709,760) (22,630)
Cash flows from investing activities
Taxation (8,000) -
Capital Expenditure (164,626) (12,500)
Net cash (used in) investing activities (172,626) (12,500)
Cash flows from financing activities
Proceeds from the issue of new shares 67,877 62,911
Finance income/(expense) 684,000 -
Net cash generated by financing activities 751,877 62,911
Movement in cash and cash equivalents (130,508) 27,781
Cash and cash equivalents at beginning of period 101,018 73,237
Cash and cash equivalents at end of year (29,490) 101,018
The financial statements were approved by the Board of Directors on 31th
October 2024, and signed on its behalf by:
On behalf of the board
Eamon
O’Brien
Andrew Laz Fleming
Director Director
The Directors of IMC, after due and careful enquiry, accept responsibility for
the contents of this announcement.
REGULATORY ANNOUNCEMENT ENDS.
Contact Details:
Brinsley Holman: +44 20 7464 4098 / Brinsley.Holman@kbrl.co.uk
Keith, Bayley, Rogers & Co. Limited
Stephen Clayson: +44 7771 871 847 / Stephen.Clayson@kbrl.co.uk
Keith, Bayley, Rogers & Co. Limited
Kathryn Byrne: +353 85 233 6033
IMC Exploration Group plc
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