REG-IMC Exploration Group Plc: Half-year Report
28/03/2024 15:00
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.
HALF-YEARLY FINANCIAL REPORT
FOR THE PERIOD 1st JULY 2023 TO 31st DECEMBER 2023
IMC Exploration Group Public Limited Company
(“IMC” or the “Company”)
Chairman’s Statement
The Directors of IMC are pleased to present the Company’s unaudited,
consolidated, half-yearly financial report for the six-month period ended 31
December 2023.
The six months under review have been very significant for IMC and its
shareholders, with the successful completion, in October 2023, of the
acquisition of MVI Ireland s.r.o. (“MVI”), the 100% owner of the Armenian
company, Assat LLC, which owns and operates the Karaberd Mine, an operating
gold mine located in Lori Marz, Northern Armenia.
The acquisition of MVI constituted a reverse takeover under the Listing Rules
and as required by the Financial Conduct Authority’s updated rule on a
minimum required market capitalisation of £30m for a company undertaking such
a transaction, we were pleased that international consultants Alvarez and
Marsal conducted a valuation of MVI, in accordance with the International
Valuation Standards (IVS, 2020), that demonstrated a value in excess of the
required threshold of £30m.
Since the completion of the acquisition of MVI on 1 November 2023 we have been
delighted by the performance at the Karaberd mine and the extraction of ore
continues, including a sale of ore in December 2023 for a consideration of
€1,500,000.
We believe there is great potential in Armenia, both with the Karaberd mine
and more widely. We are continuing to review other projects in Armenia, and
all at IMC believe that operating in Armenia will provide significant future
growth opportunities.
I am also pleased that following our acquisition of MVI we have, post period
end, strengthened the IMC Board with a new CFO, Vahagn Marukhyan, who has
significant experience with Ernst & Young in Armenia, and a geologist, Gagik
Gevorgyan, who has worked as chief geologist in Armenia with a number of
mining companies and who has a tremendous knowledge of projects in Armenia
that are likely to form part of the IMC pipeline of projects going forward.
In Ireland, IMC has a mineral-rich supply of spoils and tailings with a
Mineral Resource Estimate (MRE) on its Avoca spoils and tailings. Based on
the Inferred Mineral Resource Estimate there are circa. 20,000 oz gold,
600,000oz silver, 2,600 tonnes copper and 7,800 tonnes lead in these spoils
and tailings heaps, which are in crushed rock sitting above ground.
At current commodity metal prices, this represents a total gross value of
£71,346,400.
IMC has the intention to advance the Avoca opportunity as an eco-remediation
project, aligning closely with the goals outlined by both the Irish government
and the objectives of the European Union. To progress this opportunity, at
IMC’s invitation, China National Geological & Mining Corporation
(“CGM”), who have experience working global projects and especially have
experience in eco-based extraction of metals and the remediation of mining
sites, recently visited our Avoca site to assess how further progress should
be made. I am pleased to say that following this visit we have completed and
signed a Memorandum of Understanding for Cooperation with CGM and I look
forward to the completion of a project plan to maximise the potential of our
Avoca site given the gross value of metals sitting in the spoils and tailings
and also given that the European Union has passed a Nature Restoration Law
requiring the restoration of up to 20% of lands and sea by 2030. We believe
that this will also give impetus to our proposed remediation of the 155-acre
Avoca mine site. We are also reviewing the potential for further copper
extraction on our Avoca licence given the significant increase in copper
prices since mining stopped in Avoca in 1982.
Also in Ireland, I am very encouraged by the recent drilling results from
IMC’s North Wexford Gold Project which confirms interpretation of two
structural zones, up to 20 metre (“m”) wide, associated with gold
(“Au”) mineralization. An historic drillhole intercepted 1.5m grading
354g/t Au, interpreted as part of an upper, near surface zone of
mineralization and a lower zone of 2m grading 1.4g/t Au. The new drillhole
extends these zones of mineralization by 150m to the northeast and intersected
grades of 1m grading 5.8g/t Au in the upper zone and 1m grading 1.1g/t Au in
the lower zone. Both the upper and lower zones are open along strike and to
depth. Geological interpretation suggests more structural zones are present.
The mineralization is present in wide zones of quartz-veined sediments (6m and
20m wide respectively) of which the upper zone is interpreted as the probable
host of the 354g/t Au bonanza grade boulder.
The last six months has been very productive for IMC, particularly the
successful conclusion of the acquisition of the Karaberd mine in Armenia and
the strengthening of the Board. With the current high price of gold, silver
and copper and IMC’s projects in Armenia and Ireland, IMC expects to make
notable progress in the coming months.
Eamon P. O’Brien,
Executive Chairman,
Dublin, 28 March 2024
IMC Exploration Group Public Limited Company
Consolidated Statement of Comprehensive Income
for the period 1st July 2023 to 31st December 2023
Continuing Operations
Dec’23 Jun’23
Revenue 1,492,000 -
Cost of Sales (501,912) -
Gross Profit 990,088 -
Administration Costs (783,789) (324,917)
Operating Profit /(loss) for the period 206,299 (324,917)
Finance Income - -
Amount written off Intangible Assets - -
Amount written off investment - -
Profit / (Loss) for period before tax 206,299 (324,917)
Income tax expenses (159,296) -
Total comprehensive income (loss) for the period 47,003 (324,917)
Attributable to:
Equity holders of the Company 47,003 (324,917)
Total Comprehensive Income (Loss) attributable to:
Equity holders of the Company 47,003 (324,917)
Earnings per share
From continuing operations
Basic and Diluted profit per share (cent) 0.000 (0.000)
All activities derived from continuing operations. All gains or losses and
total comprehensive income or 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.
IMC Exploration Group Public Limited Company
Consolidated Statement of Financial Position
As at 31st December 2023
Dec’23 Jun’23
Assets
Intangible assets 3,878,881 640,291
Property, plant and equipment 64,472 946
Goodwill 522,913 -
Total Non-Current Assets 4,466,266 641,237
Current Assets
Inventory 206,298 -
Trade and other receivables 2,483,052 9,045
Cash and cash equivalents 7,036 101,018
Total Current Assets 2,696,385 110,063
Total Assets 7,162,651 751,300
Equity
Share Capital 723,190 364,384
Share premium & Capital 8,974,269 4,253,642
Retained deficit (4,809,338) (4,823,272)
Attributable to owners of the Company 4,888,122 (205,246)
Total Equity 4,888,122 (205,246)
Liabilities – Current
Trade and other payables 903,701 294,260
Current tax liabilities 575,962 -
Total Liabilities-Current 1,479,662 294,260
Liabilities – Non-Current
Loan 794,868 662,286
Total Liabilities-Current 794,868 662,286
Total Equity and Liabilities 7,162,652 751,300
IMC Exploration Group Public Limited Company
Consolidated Statement of Changes in Equity
for the period 1st July 2023 to 31st December 2023
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
Profit for the period - - - 47,003 47,003
Total comprehensive income for the period - - - 47,003 47,003
Transactions with owners, recorded directly in equity contributions and distributions to owners
Shares issued 358,807 4,565,176 - - 4,923,982
Capital Contributions - - 155,451 (33,069) 122,382
Share issue costs - - - - -
Balance at 31 December 2023 723,191 8,818,818 155,451 (4,809,338) 4,888,121
IMC Exploration Group Public Limited Company
Consolidated Statement of Cash Flows
for the period 1st July 2023 to 31st December 2023
Dec’23 Jun’23
Cash flows from operating activities
Profit /(Loss) for the year 236,954 (324,917)
Adjustments for:
Other Expenses 9,000 -
Income Tax recognised in profit and loss 169,000 -
Depreciation 54,386 904
Cash from operations before changes in working capital 469,340 (324,013)
Movement in trade and other receivables (1,473,488) 1,942
Movement in trade inventories 395,000 -
Movement in trade and other payables 386,855 308,386
Net cash flow from operating activities (222,293) (13,685)
Cash flows from investing activities
Capital Expenditure (20,000) (12,500)
Net cash (used in) investing activities (20,000) (12,500)
Cash flows from financing activities
Proceeds from the issue of new shares 139,366 62,911
Finance income/(expense) - -
Net cash generated by financing activities 139,366 62,911
Movement in cash and cash equivalents (102,927) 36,726
Cash and cash equivalents at beginning of period 109,963 73,237
Cash and cash equivalents at end of year 7,036 109,963
The Board continuously assesses and monitors the key risks and uncertainties
affecting the business. These have not substantially changed from those set
out in the prospectus dated 29 September 2023 and published by the Company.
Responsibility Statement
The directors of the Company (the “Directors”) are responsible for the
contents of this half-yearly financial report.
The Directors, being Eamon O’Brien, Kathryn Byrne, Andrew (Laz) Fleming,
Vahagn Marukhyan and Gagik Gevorgyan, confirm that to the best of their
knowledge:
· The half-yearly financial report, which has been prepared in
accordance with the applicable set of accounting standards, gives a true and
fair view of the assets, liabilities, financial position and profit or loss of
the issuer, or the undertakings included in the consolidation as a whole as
required by DTR 4.2.4 R; and
· the interim management report (including the Chairman’s
Statement) includes a fair review of the information required by DTR 4.2.7 R;
· the interim management report (including the Chairman’s
Statement) includes a fair review of the information required by DTR 4.2.8 R.
REGULATORY ANNOUNCEMENT ENDS.
Enquiries
IMC Exploration Group plc
Eamon O’Brien
+353 87 6183024
Kathryn Byrne
+353 85 233 6033
Keith, Bayley, Rogers & Co. Limited
Stephen Clayson
stephen.clayson@kbrl.co.uk
+44 (0)7771 871 847
Brinsley Holman
brinsley.holman@kbrl.co.uk
+44 (0)7776 302 228
IFC Advisory Limited (Financial PR and IR)
Tim Metcalfe
Florence Chandler
+44 (0)203 934 6630
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