REG - Kazera Global PLC - Interim Results
29/03/2023 07:00
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RNS Number : 5396U Kazera Global PLC 29 March 2023
29 March 2023
Kazera Global plc ('Kazera' or 'the Company')
Interim Results
Kazera Global plc, the AIM-quoted investment company, announces its unaudited
Interim Results for the six months ended 31 December 2022.
Highlights
· Receipt of mining permit for Walviskop Heavy Mineral Sands (HMS)
Project
· Commenced initial production of HMS in December 2022
· Diamond mine pan plant installed and commissioned at Alexander Bay
Diamond Project
· Ongoing disposal of African Tantalum (Pty) Ltd ('Aftan') for cash
consideration of US$13m
· Cash at 27 March 2023 of £1,258k
Dennis Edmonds, CEO of Kazera Global, said: "We remain committed to
strengthening our position as a well-funded, commodity diverse, mining
investment company, and developing early-stage assets towards meaningful cash
flow and resource realisation.
"Accordingly, towards the end of the period under review, we were delighted to
announce the disposal of Aftan to Hebei Xinjian Construction ('Xinjian') for
US$13m cash payable in several tranches to December 2023. Notably, Kazera is
retaining the right to receive a debenture payment equivalent to 2.5% of gross
sales of produced lithium and tantalum for the life of the Tantalite Valley
Mine, and 100% ownership remains with us until Kazera is paid in full. In the
interim, all costs are carried by Xinjian.
"This first realisation of returns from an investment is in line with our
strategy and allows us to invest in our other assets without the need for
additional capital raising, namely Whale Head Minerals (Pty) Ltd, which
operates the Walviskop Heavy Mineral Sands Project ('Walviskop'), and Deep
Blue Minerals (Pty) Ltd, which operates the Alexander Bay Diamond Project.
"Walviskop is a five-hectare beach sand deposit with a minimum 1.5Mt at 49.9%
purity, predominantly ilmenite and garnet, which will be replenished by wave
action; zircon and rutile are also present but have not been included in the
modelling. Having placed an order for a screening plant to separate out the
silica from the HMS and to create a saleable HMS concentrate, we expect the
project to generate positive cashflow within the next six months and produce
circa 6Kt HMS per month, achieving an estimated gross profit in excess of
US$300,000 per month at current prices.
"Progress is also being made at the Alexander Bay Diamond Project, which is
located within the 80km long Alexkor diamond fields and lying between two
historic De Beers operations. With an estimated circa 2 million carats left in
the tenement, mining is undertaken on a sub-contract basis from Alexkor, a
government owned entity, which has the rights to all the diamonds in the
area. During the period, Kazera undertook the development of a new
processing facility, which is now complete and capable of handling 70 tons per
hour of raw material.
"Post period end, we were delighted to welcome a new strategic investor to our
register, AMS, which has extensive experience in mining and infrastructure
projects. Having agreed to acquire a 29.9% interest in the Company at a 53%
premium to the price per Ordinary Share immediately prior to the suspension of
Kazera's trading on AIM, AMS clearly recognises the value of your company.
"Looking ahead, with cash in hand, a supportive strategic investor in AMS, and
clear path towards increasing scalable production at Walviskop providing us
with a highly cash generative platform with which to grow the Company further,
I remain highly optimistic for 2023 and beyond.
"Finally, I would like to take this opportunity to thank the Board and
management team for their continued hard work and support and look forward to
providing regular updates on our progress as we focus on realising the
potential of our investments and generating value for our shareholders."
Further payment from Xinjian
Since its announcement on 16 March 2023, the Company has received a further
proof of payment of US$500k from Xinjian towards its purchase of Kazera's
interest in Aftan, which is expected to be received imminently; the sale
remains on track to complete in December 2023. This amount is not included in
the calculation of the group's cash balance as stated above, of £1,258k.
Update re new strategic shareholder
Further to the Company's announcement on 16 March 2023, in which it was stated
that, "The Company has been advised that the purchase will take place in a
series of tranches during 2023, with all voting rights passing to the
purchaser on payment of the first tranche.", the Company has since been
advised that voting rights will pass to the purchaser on payment of the second
tranche, not the first tranche as previously stated. Any further updates
relating to the changes in shareholdings will be announced in accordance with
the AIM Rules upon receipt of any notification in accordance with the
Disclosure and Transparency Rules.
For further information on the Company, visit: www.
(http://www.kazeraglobal.com/) kazeraglobal (http://www.kazeraglobal.com/)
.com (http://www.kazeraglobal.com/) .
Kazera Global plc kazera@stbridespartners.co.uk
Dennis Edmonds, CEO
finnCap (Nominated Adviser and Joint broker) Tel: +44 (0)207 220 0500
Christopher Raggett / Fergus Sullivan (Corporate Finance)
St Brides Partners (Financial PR) kazera@stbridespartners.co.uk
Paul Dulieu / Isabel de Salis / Will Turner
Condensed Consolidated Statement of Comprehensive Income
for the six-months ended 31 December 2022
Notes Six months ended Six months ended
31 December 31 December
2022 2021
Unaudited Unaudited
Continuing operations £'000 £'000
Revenue 50 100
Cost of sales - (100)
Gross profit 50 -
Pre-production expenses - (72)
Administrative expenses (531) (529)
Operating loss before taxation (481) (601)
Income tax - -
Loss for the period (481) (601)
Total comprehensive income
Loss attributable to owners of the Company (496) (589)
Non-controlling interests 15 (12)
(481) (601)
Other comprehensive income
Exchange gains/(losses) on translation of foreign operations 261 (210)
Other comprehensive income for the period, net of tax 261 (210)
Total comprehensive income attributable to the owners of the Company (235) (799)
Earnings per share:
Basic and diluted loss per share (pence) 3 (0.05)p (0.08)p
Condensed Consolidated Statement of Financial Position
As at 31 December 2022
Notes 31 December 2022 30 June 2022
Unaudited Audited
£'000 £'000
Non-current assets
Mines under construction 2,912 2,961
Property, plant and equipment 741 796
Total non-current assets 3,653 3,757
Current assets
Trade and other receivables 466 279
Cash and cash equivalents 595 637
Current assets 1,061 916
Total assets 4,714 4,673
Current liabilities
Trade and other payables 4 1,718 652
Total current liabilities 1,718 652
Non-current liabilities
Other payables - 826
Provisions 55 54
Total non-current liabilities 55 880
Total liabilities 1,771 1,532
Net assets 2,942 3,141
Equity attributable to owners of the parent
Share Capital 3,516 3,516
Share Premium 17,556 17,556
Capital redemption reserve 2,077 2,077
Share-based payments reserve 463 443
Foreign exchange reserve (233) (494)
Retained Earnings (20,403) (19,908)
Equity attributable to owners of the Company 2,976 3,190
Non-controlling interests (34) (49)
Total equity 2,942 3,141
Condensed Consolidated Statement of Changes in Equity
for the six-month period ended 31 December 2022
Unaudited Capital redemption reserve £'000 Share-based payment reserve £'000 Foreign exchange reserve £'000 Equity attributable to owners £'000 Non-controlling interests £'000
Share Capital Share Premium Retained earnings £'000
£'000 £'000 Total equity £'000
1 July 2021 3,279 15,863 2,077 337 (477) (17,917) 3,162 (29) 3,133
Loss for the period - - - - - (589) (589) (12) (601)
Other comprehensive income:
Exchange movement on translation of foreign operations - - - - (210) - (210) - (210)
Total comprehensive income for the period - - - - (210) (589) (799) (12) (811)
Transactions with owners:
Issue of share capital 61 454 - - - - 515 - 515
Share-based payment charges - - - 55 - - 55 - 55
Total transactions with owners, recognised directly in equity 61 454 - 55 - - 570 - 570
Balance at 31 December 2021 3,340 16,317 2,077 392 (687) (18,506) 2,933 (41) 2,892
Unaudited Capital redemption reserve £'000 Share-based payment reserve £'000 Foreign exchange reserve £'000 Equity attributable to owners £'000 Non-controlling interests £'000
Share Capital Share Premium Retained earnings £'000
£'000 £'000 Total equity £'000
1 July 2022 3,516 17,556 2,077 443 (494) (19,908) 3,190 (49) 3,141
Loss for the period - - - - - (496) (496) 15 (481)
Other comprehensive income:
Exchange movement on translation of foreign operations - - - - 261 - 261 - 261
Total comprehensive income for the period - - - - 261 (496) (235) 15 (220)
Transactions with owners:
Share-based payment charges - - - 20 - - 20 - 20
Total transactions with owners, recognised directly in equity - - - 20 - - 20 - 20
Balance at 31 December 2022 3,516 17,556 2,077 463 (233) 2,976 (34) 2,942
(20,403)
Condensed Consolidated Statement of Cash Flows
for the six-month period ended 31 December 2022
Six months to Six months to
31 December 31 December
2022 2021
Unaudited Unaudited
£'000 £'000
Cash flows from operating activities
Loss before taxation (481) (601)
Depreciation 63 65
Net foreign exchange (378) (143)
Share-based payments charge and other non-cash items 20 55
Net cashflow before changes in working capital (776) (624)
Increase in receivables (186) (24)
Increase in payables 243 427
Net cash used in operating activities (719) (220)
Cash flows from investing activities
Development costs (26) (259)
Proceeds from proposed sale of investment 828 -
Net cash generated from/(used) in investing activities 802 (259)
Cash flows from financing activities
Issue of share capital - 515
Repayment of borrowings (125) -
Net cash (used in)/generated from financing activities (125) 515
Net (decrease)/increase in cash and cash equivalents during the period (42) 36
Cash at the beginning of period 637 47
Cash and cash equivalents at the end of the period 595 83
Notes to the condensed consolidated interim financial information
1 GENERAL INFORMATION
Kazera is public limited company incorporated and domiciled in the United
Kingdom; its Ordinary shares are quoted on AIM of the London Stock Exchange.
2 BASIS OF PREPARATION
The accounting policies, methods of computation and presentation used in the
preparation of the condensed consolidated interim financial information are
the same as those used in the Group's audited financial statements for the
year ended 30 June 2022. There have been no changes to the reported figures as
a result of any new reporting standards or interpretations.
Basis of preparation
The condensed interim financial statements have been prepared in accordance
with the requirements of the AIM Rules for Companies. As permitted, the
Company has chosen not to adopt IAS 34 "Interim Financial Statements" in
preparing this interim financial information. The condensed interim financial
statements should be read in conjunction with the annual financial statements
for the year ended 30 June 2022, which have been prepared in accordance with
international accounting standards in conformity with the Companies Act 2006.
The financial information set out in this interim report is unaudited and does
not constitute statutory accounts as defined in section 434 of the Companies
Act 2006. The Company's statutory financial statements for the period ended
30 June 2022, prepared under international accounting standards in conformity
with the Companies Act 2006, have been filed with the Registrar of
Companies. The auditor's report on those financial statements was
unqualified and did not contain a statement under section 498 (2) or (3) of
the Companies Act 2006.
Comparatives
The Group has presented comparatives for the statement of comprehensive
income, statement of cash flows and statement of changes in equity for the six
months ended 31 December 2021; and a statement of financial position as at 30
June 2022 in accordance with the requirements of the AIM Rules for Companies.
Risks and uncertainties
The Board continuously assesses and monitors the key risks of the business.
The key risks that could affect the Company's medium-term performance and the
factors that mitigate those risks have not substantially changed from those
set out in the Company's 2022 Annual Report and Financial Statements, a copy
of which is available on the Company's website, www.kazeraminerals.com
(http://www.kazeraminerals.com) .
Critical accounting estimates and judgements
The preparation of condensed interim financial statements requires management
to make estimates and assumptions that affect the reported amounts of assets
and liabilities at the end of the reporting period. Significant items subject
to such estimates are set out in the Company's 2022 Annual Report and
Financial Statements. The nature and amounts of such estimates have not
changed during the interim period.
Going Concern
The financial position of the Group and cash flows as at 31 December 2022 are
set out above. The Group meets its day-to-day working capital and other
funding requirements with its current cash, raised through equity placings,
revenue from its cash generating assets, and the disposal of African Tantalum
(Pty) Ltd. On the basis of current financial projections (at least 12 months)
the Directors have a reasonable expectation that the Group has adequate
resources to continue in operational existence, and meet its liabilities as
they fall due, for the foreseeable future. Accordingly, the Directors consider
it appropriate to adopt the going concern basis in preparing this financial
information.
3 EARNINGS PER SHARE
Basic earnings per share is calculated by dividing the loss attributable to
equity holders of the Company by the weighted average number of ordinary
shares in issue during the period.
Six months to Six months to
31 December 31 December 2021
2022
£'000s £'000s
Loss from continuing operations attributable to equity holders of the Company (496) (589)
Weighted average number of ordinary shares in issue 937,164,911 744,005,591
Basic and fully diluted loss per share from continuing operations (0.05)p (0.08)p
4 TRADE AND OTHER PAYABLES
On 20 December 2022, the Company announced that it had entered into an
agreement to sell its interest in 100% of the shares in African Tantalum (Pty)
Ltd to Hebei Xinjian Construction ("Xinjian") for a cash sum of USD13 million
(the "Transaction"); included in trade and other payables are amounts
totalling £828k with respect to initial proceeds of the Transaction.
5 SHARE OPTIONS AND WARRANTS
The total number of share options and share warrants in issue as at 30 June
2022 and 31 December 2022 were as follows:
Share warrants
Exercise Price (p) Expiry Date At 30 June 2022 Issued Exercised Lapsed At 31 December 2022
2.00 27/12/2022 10,000,000 - - 10,000,000 -
2.00 27/12/2022 2,500,000 - - 2,500,000 -
2.00 04/01/2023 5,000,000 - - - 5,000,000
2.00 12/01/2023 325,000 - - - 325,000
2.00 31/01/2023 10,000,000 - - - 10,000,000
2.00 01/02/2023 6,000,000 - - - 6,000,000
1.00 31/05/2023 157,331,500 - - - 157,331,500
1.00((1)) 30/10/2023 39,397,643 - - - 39,722,643
189,354,143 - - 12,500,000 179,179,143
((1)) As required under the terms of the warrant instruments dated 27 October
2021, the exercise price of the warrants was adjusted to match the price at
which equity issue announced on 5 May 2022.
Share options
Exercise Price (p) Expiry Date At 30 June 2022 Issued Exercised Lapsed At 31 December 2022
1.75 20/12/2022 3,300,000 - - 3,300,000 -
2.00 12/01/2023 1,500,000 - - - 1,500,000
1.75 20/12/2023 3,300,000 - - - 3,300,000
1.75 20/12/2024 3,400,000 - - - 3,400,000
1.00 03/06/2025 26,500,000 - - - 26,500,000
1.00 08/07/2027 - 3,000,000 3,000,000
1.00 18/07/2027 - 4,000,000 4,000,000
1.00 03/11/2027 - 1,500,000 - - 1,500,000
1.00 03/11/2027 - 15,000,000 15,000,000
36,500,000 23,500,000 - 3,300,000 56,700,000
6 EVENTS AFTER THE REPORTING PERIOD
On 14 March 2023, Odilon Kasongo Ilunga, resigned as a director of the Company.
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