REG - Kazera Global PLC - Interim Results
27/03/2024 07:00
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RNS Number : 4197I Kazera Global PLC 27 March 2024
27 March 2024
Kazera Global plc
("Kazera" or "the Company")
Interim Results
Kazera Global plc (AIM: KZG), the AIM-quoted investment company, is pleased to
announce its unaudited interim results for the six months ended 31 December
2023.
OVERVIEW
Whale Head Minerals Pty Ltd ("WHM") Heavy Mineral Sands ("HMS") Project
· October 2023: Manufacture of Trommel screening plant completed
· December 2023: Trommel screening plant received on site and roads
constructed
· National Nuclear Regulator ("NNR") permit submission made; decision
expected by the end of April 2024 with plant operations to commence
immediately thereafter
· Ongoing discussions with potential transporters and off-takers to
facilitate sale of HMS products once NRR permitting achieved
Deep Blue Minerals Pty Ltd ("DBM") Diamond Project
· November 2023: Pulsating diamond jig with 20 tons per hour processing
capacity ordered
· December 2023: Pulsating diamond jig delivered to site
· Post-period end, flow sort diamond recovery machine purchased and en
route to site:
o X-rays and sorts processed diamond gravel
o Will be sited in secure Alexkor compound
o Delivered on-site in March 2024 enabling diamond production shortly
thereafter
African Tantalum Pty Ltd ("Aftan") - Tantalum and Lithium Project
· July 2023: Received further payment of c. US$650k from Hebei Xinjian
in respect of the sale of Aftan; aggregate payments received from Hebei
Xinjian to date total c.US$4.85 million of the total consideration due of the
agreed US$13 million;
· December 2023: Commenced discussions with alternative prospective
buyer of for Aftan in the event Hebei is unable to complete
Corporate
· December 2023: African Mineral Sands Pte Ltd ("AMS") completed
purchase of 250,000,000 shares from existing shareholder at 1.5 pence per
Ordinary Share, becoming Kazera's largest shareholder
· Continued to explore value-adding acquisition opportunities
· Cash at 31 December 2023 of £684k (2022: £595k)
Dennis Edmonds, CEO of Kazera Global commented: "Our focus during the period
has been on utilising the funds from the ongoing sale of the Aftan Project to
put in place the plant, people and equipment to facilitate the last crucial
steps towards making Whale Head Minerals and Deep Blue Minerals cashflow
positive and profitable.
"Whilst we await permitting from the NNR, which is expected by the end of
April, work has been ongoing at the Whale Head Minerals site and discussions
have been progressing with potential customers. Once the NNR permit is
received, we anticipate that the sale of our heavy mineral sands will commence
swiftly.
"With the pulsating diamond jig on site, the trommel screening plant in place,
and our flow sort diamond recovery machine due to be installed in a secure
Alexkor compound shortly, the production of diamonds is also expected to
commence imminently.
"Whilst there have been some frustrations and delays, things are now
progressing on all fronts and the Board believes that 2024 is set to be the
year in which Kazera starts to really hit its stride."
**ENDS**
Kazera Global plc kazera@stbridespartners.co.uk (mailto:kazera@stbridespartners.co.uk)
Dennis Edmonds, CEO
Cavendish Capital Markets Ltd (Nominated Adviser and Broker) Tel: +44 (0)207 220 0500
Derrick Lee / Pearl Kellie (Corporate Finance)
St Brides Partners (Financial PR) kazera@stbridespartners.co.uk (mailto:kazera@stbridespartners.co.uk)
Paul Dulieu / Isabel de Salis
About Kazera Global plc
Kazera is a global investment company focused on leveraging the skills and
expertise of its Board of Directors to develop early-stage mineral exploration
and development assets towards meaningful cashflow and production.
Its three principal investments are as follows:
Alluvial diamond mining through Deep Blue Minerals (Pty) Ltd, Alexander Bay,
South Africa
Kazera currently has a 90% direct interest in Deep Blue Minerals, of which 64%
is held beneficially by Kazera and 26% is held on behalf of Black Economic
Empowerment partners.
Heavy Mineral Sands mining (including ilmenite, monazite, rutile, and
zircon) through Whale Head Minerals (Pty) Ltd, Alexander Bay, South Africa.
Kazera currently has a 60% direct beneficial interest in Whale Head Minerals.
Tantalite mining in South-East Namibia (divestment in progress)
As announced on 20 December 2022, Kazera has agreed to dispose of African
Tantalum (Pty) Ltd ("Aftan") for a cash consideration of US$13 million plus a
debenture payment of 2.5% of the gross sales of produced lithium and tantalum
for life-of-mine. Completion of the sale is subject to receipt of full
consideration proceeds. Aftan has been deconsolidated from the Company's
financial statements with effect from 4 January 2023 because in accordance
with the terms of the sale agreement, it has relinquished control of the Aftan
in favour of the purchaser, Hebei Xinjian Construction Close Corp ("Hebei
Xinjian") with effect from that date. Kazera retains the right to cancel the
transaction and retain all amounts paid to date in the event of default by
Hebei Xinjian.
The Company will consider additional investment opportunities as appropriate,
having regard to the Group's future cash flow requirements.
Condensed Consolidated Statement of Comprehensive Income
for the six-months ended 31 December 2023
Notes Six months ended Six months ended
31 December 31 December
2023 2022
Unaudited Unaudited
Continuing operations £'000 £'000
Revenue 6 50
Cost of sales (73) -
Gross profit (67) 50
Administrative expenses (499) (896)
Foreign exchange (loss)/gain (400) 378
Other expenses (493) -
Net finance income 207 (13)
Operating loss before taxation (1,252) (481)
Income tax - -
Loss for the period (1,252) (481)
Total comprehensive income
Loss attributable to owners of the Company (1,223) (496)
Non-controlling interests (29) 15
(1,252) (481)
Other comprehensive income
Exchange (losses)/gains on translation of foreign operations (29) 261
Other comprehensive income for the period, net of tax (29) 261
Total comprehensive income attributable to the owners of the Company (1,252) (235)
Earnings per share:
Basic and diluted loss per share (pence) 3 (0.13)p (0.05)p
Condensed Consolidated Statement of Financial Position
As at 31 December 2023
Notes 31 December 2023 30 June 2023
Unaudited Audited
£'000 £'000
Non-current assets
Mines under construction 780 749
Property, plant and equipment 898 531
Total non-current assets 1,678 1,280
Current assets
Trade and other receivables 4 7,298 9,053
Cash and cash equivalents 684 761
Current assets 7,982 9,814
Total assets 9,660 11,094
Current liabilities
Trade and other payables 39 192
Total current liabilities 39 192
Total liabilities 39 192
Net assets 9,621 10,902
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 478 574
Foreign exchange reserve 394 423
Retained Earnings (14,205) (13,078)
Equity attributable to owners of the Company 9,816 11,068
Non-controlling interests (195) (166)
Total equity 9,621 10,902
Condensed Consolidated Statement of Changes in Equity
for the six-month period ended 31 December 2023
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:
Issue of share capital - - - - - - - - -
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) 2,975 (34) 2,941
(20,404)
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 2023 3,516 17,556 2,077 574 423 (13,078) 11,068 (166) 10,902
Loss for the period - - - - - (1,223) (1,223) (29) (1,252)
Other comprehensive income:
Exchange movement on translation of foreign operations - - - -
(29) - (29) - (29)
Total comprehensive income for the period - - - - (29) (1,223) (1,252) (29) (1,281)
Transactions with owners:
Share-based payment credit - - - (96) - 96 - - -
Total transactions with owners, recognised directly in equity - - - (96) - 96 - - -
Balance at 31 December 2023 3,516 17,556 2,077 478 394 (14,205) 9,816 (195) 9,621
Condensed Consolidated Statement of Cash Flows
for the six-month period ended 31 December 2023
Six months to Six months to
31 December 31 December
2023 2022
Unaudited Unaudited
£'000 £'000
Cash flows from operating activities
Loss before taxation (1,252) (481)
Depreciation 40 63
Net foreign exchange 403 (378)
Interest receivable (207) -
Share-based payments charge and other non-cash items - 20
Net cashflow before changes in working capital (1,016) (776)
Increase in receivables 461 (186)
(Decrease)/increase in payables (155) 243
Net cash used in operating activities (710) (719)
Cash flows from investing activities
Purchase of property plant and equipment (398) -
Development costs (29) (26)
Proceeds from the sale of investment 1,060 828
Net cash generated from investing activities 633 802
Cash flows from financing activities
Repayment of borrowings - (125)
Net cash used in financing activities - (125)
Net decrease in cash and cash equivalents during the period (77) (42)
Cash at the beginning of period 761 637
Cash and cash equivalents at the end of the period 684 595
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 2023. There have been no changes to the reported figures as
a result of any new reporting standards or interpretations.
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 2023, 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 2023, 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 2022; and a statement of financial position as at 30
June 2023 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 2023 Annual Report and Financial Statements, a copy
of which is available on the Company's website, www.kazeraglobal.com
(http://www.kazeraglobal.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 2023 Annual Report and
Financial Statements. The nature and amounts of such estimates have not
changed during the interim period.
Going Concern
The financial statements have been prepared assuming the Group and Company
will continue as a going concern.
The Company prepares and routinely maintains a cash flow forecast; the
directors have, with reference to the cash flow forecast considered a number
of potential scenarios under which the Company's ability to continue as a
going concern is assessed.
In assessing whether the going concern assumption is appropriate, the
directors have taken into account all available information for the
foreseeable future; in particular for the 12 months from the date of approval
of these financial statements and performed sensitivity analysis thereon. This
assessment includes consideration of the cash receipts arising from the
disposal of the Group's operations in Namibia, and in South Africa, the
Group's future plans, expenditure commitments, and cost reduction measures
that can be implemented and permitting requirements.
The Directors' estimates are dependent principally upon the Group's mining
operations coming into operation as planned and a solution found, to the
challenges experienced in receiving the remaining funds from the sale of
African Tantalum Pty Ltd. The Directors are confident that further funds could
be raised to meet any shortfall in the event that insufficient funds are
received timeously, or operations are delayed or underperform.
In view of the facts that the Group's mining operations are not yet in full
operation and the proceeds arising from the sale of the Company's former
subsidiary, African Tantalum Pty Ltd have not yet been received in full (as
further explained in Note 4 below), the Directors consider than a material
uncertainty exists as to the Company's ability to continue as a going concern.
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 2022
2023
£'000 £'000
Loss from continuing operations attributable to equity holders of the Company (1,223) (496)
Weighted average number of ordinary shares in issue 937,164,911 937,164,911
Basic and fully diluted loss per share from continuing operations (0.13)p (0.05)p
4 DEFERRED CONSIDERATION RECEIVABLE
In December 2022, the Company agreed to sell its subsidiary African Tantalum
(Pty) Limited to Hebei Xinjian Construction for US$13,000,000. As at 31
December 2023, GBP£7,206,732 (US$9,175,034) remained due and payable under
the sale and purchase agreement. The full amount is included in trade and
other receivables.
Whilst the sale transaction has not proceeded in accordance with the agreed
terms of the sale and purchase agreement, the directors remain confident that
the carrying value of the deferred consideration is appropriate.
31 December 2023
£'000
As at 1 July 2023 8,501
Amounts received during the period (1,060)
Interest charged 207
Exchange translation difference (441)
As at 31 December 2023 7,207
5 EVENTS AFTER THE REPORTING PERIOD
There were no events to report after the reporting period.
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