REG - Landore Resources Ld - Interim Results
30/09/2022 14:30
For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20220930:nRSd3996Ba&default-theme=true
RNS Number : 3996B Landore Resources Limited 30 September 2022
30 September 2022
Landore Resources Limited
("Landore Resources" or the "Company")
Interim Results for the Six Months Ended 30 June 2022
Landore Resources Limited (AIM:LND) is pleased to announce its interim results
for the six months ended 30 June 2022.
For more information, please contact:
Landore Resources Limited
Bill Humphries, Chief Executive Officer Tel: 07734 681262
Glenn Featherby, Finance Director Tel: 07730 420318
Cenkos Securities plc (Nominated Adviser and Broker)
Derrick Lee / Pete Lynch Tel: 0131 220 9100
MANAGEMENT DISCUSSION AND ANALYSIS
FOR THE SIX MONTHS ENDED 30 JUNE 2022
General
The following discussion of performance, financial condition and future
prospects should be read in conjunction with the interim consolidated
financial statements of Landore Resources Limited ("Landore Resources" or the
"Company") and its subsidiaries (together, "the Group") and notes thereto for
the period from 1 January 2022 to 30 June 2022. All amounts are stated in
sterling.
Overview
Landore Resources is admitted to trading on the AIM market operated by the
London Stock Exchange plc, with the trading symbol LND.L. The Company is based
in Guernsey in the Channel Islands and its 100 per cent owned operating
subsidiary, Landore Resources Canada Inc. ("Landore Canada"), is engaged in
the exploration and development of a portfolio of precious and base metal
properties in North America.
Financial Results:
The financial results for the six months to 30 June 2022 show a loss of
£794,385 (30 June 2021: loss of £2,422,042). Exploration costs were
£398,341 (30 June 2021: £1,641,662).
The Group's cash at bank at 30 June 2022 was £740,405 (31 December 2021:
£875,658) and the Group has no debt.
Operations Report
The Junior Lake Property:
The Junior Lake property, 100 per cent owned by Landore
Canada, is located in the province of Ontario, Canada,
approximately 235 kilometres north-northeast of Thunder Bay and is host to the
recently discovered BAM Gold Deposit, the B4-7
Nickel-Copper-Cobalt-PGEs deposit and the adjacent Alpha PGEs
zone. Junior Lake also contains the VW Nickel deposit and numerous other
highly prospective mineral occurrences including lithium.
BAM Gold Deposit:
Mineral Resource Estimate
On 8 February 2022 the Company announced that Cube Consulting Pty Ltd ("Cube")
had completed an updated National Instrument 43-101 ("NI 43-101") compliant,
Mineral Resource Estimate ("MRE") on the BAM Gold Project. The MRE modelling
increased the BAM Gold Project's In-Situ resource, at a 0.3g/t cut-off to
49,231,000 tonnes (t) at 1.0 grams/tonne (g/t) for 1,496,000 ounces of gold
(oz Au) including 30,965,000t at 1.0g/t for 1,029,000 ounces gold in the
Indicated Category.
Preliminary Economic Assessment
On 9 May 2022, the Company announced the completion of a Technical Report and
Preliminary Economic Assessment ("PEA") on the BAM Gold Project:
· The PEA considers the economics of exploiting resources inside
optimised pit shells of 22.4 Mt at 1.16g/t Au containing 833,000 ounces gold
using a long term gold price of US$1,800. The project assumes the construction
of a 2.2 Mt per annum processing plant over 4 quarters followed by a
production period of 10.5 years.
· The PEA indicates that the BAM Gold Project generates a pre-tax
and post-tax NPVS of, respectively, US$333.6M and US$231.2M and pre-tax and
post-tax real IRRs of 87.4% and 66.7%. The BAM Gold Project has an after-tax
simple pay back of 1.25 years from the start of production or 2.25 years from
the start of project.
To follow up on this positive PEA, a drill programme of 7,500 metres is
underway to infill and extend the BAM Gold Deposit and test several potential
underground mining targets, for completion following exploration drilling in
the Felix Lake-Lamaune area west of the BAM Gold Deposit.
Felix Lake Gold-Battery Metals Exploration:
In May 2022 a soil-till sampling programme was initiated in the Felix Lake,
Lamaune Gold and Carrot Top Ni-Cu-Co-PGEs prospect areas. The ongoing soils
programme will assist in future target selection for Felix-Lamaune exploration
drilling.
A drilling programme consisting of 7,500 metres of NQ diamond core drilling
was commenced on 27 July 2022. The programme was designed to drill-test the
highly prospective Felix and Lamaune areas located along strike to the
immediate west of the BAM Gold deposit. The drilling will target previously
identified gold and battery metals mineralisation 12 kilometres to the west
along strike from the BAM Gold and B4-7
Nickel-Copper-Cobalt-Palladium-Platinum deposits (Ni-Cu-Co-PGEs).
Felix drilling programme - 20 drill holes for 3,800 metres of NQ Diamond core,
targeting previously identified gold and battery metals mineralisation within
the highly prospective Felix-Lamaune areas from 1,000W to 5,000W along strike
from the BAM Gold Deposit and the B4-7/VW Battery Metals deposits. This
drilling programme has been completed with the company awaiting the results.
Lamaune drilling programme - 16 drill holes for 3,700 metres of drilling on
the Lamaune Gold prospect and the adjacent Carrot Top and Grassy Pond
Nickel-Copper-Cobalt-PGE prospects, from 7,000W to 10,000W and along strike
from the BAM Gold Deposit and the B4-7/VW Battery Metals deposits.
The continued rapid growth of the BAM Gold Deposit together with the possible
future development of the other known gold prospects along this highly
prospective 31 kilometre long Archean greenstone belt bodes well for the
future of the Junior Lake Property hosting a multi-million ounce gold deposit.
Battery Metals:
The growing adoption of electric vehicles (EVs) is driving the increasing
demand for nickel, cobalt and lithium ("Battery Metals") - which are each
critical metals used as cathode materials for lithium-ion batteries in the
automotive industry, as well as the energy and electronics industries.
In addition to advancing the BAM Gold Deposit, on which the Group remains
focused, the Group is encouraged by the increased demand for 'Battery Metals'
as the Group's highly prospective Junior Lake property is host to significant
Battery Metals Resources and prospects delineated by Landore prior to the
discovery of BAM Gold. These resources are compliant to Canadian National
Instrument 43-101 (NI43-101).
Mineral Resources:
· B4-7 Nickel-Copper-Cobalt-PGE Deposit and Alpha Zone: 3,292,000
tonnes at 1.20% Nickel Equivalent (NiEq) in the Indicated category and 568,000
tonnes at 1.26% NiEq in the Inferred category for a total of 46,661 tonnes of
contained metal.
· VW Nickel-Copper-Cobalt Deposit: - 1,084,000 tonnes at 0.71%NiEq
in the indicated category and 180,000 tonnes at 0.68%NiEq in the inferred
category for a total of 8,920 tonnes of contained metal.
· The Junior Lake Nickel is the highly sought-after Grade 1
sulphide Nickel suitable for 'Battery Metals'.
Junior Lake Lithium Prospects:
Landore has three known lithium occurrences on its Junior Lake property,
including the historical Despard Lithium deposit, the Swole Lake
spodumene-bearing pegmatite and Tape Lake pegmatites, both discovered by
Landore.
Strategic Review
In light of the significance of the BAM Gold and Battery Metals deposits
located on the Junior Lake property, as announced in the MRE, the Company
announced on 9 May 2022 that the Board is reviewing the strategic options
available to the Company in relation to the Company's Canadian
subsidiary/assets. The options expected to be considered under the Strategic
Review include potential joint venture arrangements or strategic partnerships,
the sale of all or a part of its wholly owned subsidiary, Landore Resources
Canada Inc. or the Junior Lake Project, or a combination thereof.
Phase one of the Strategic Review will be completed at the end of Q3 2022, at
which time the Board will consider its corporate direction to the benefit of
shareholders.
COVID-19:
The spread of a novel strain of coronavirus ("COVID-19") and measures taken to
contain the spread of the virus caused significant disruption to Landore's
exploration activities during the first half of 2020. By mid-2020 the Company
resumed Canadian operations, and since then has successfully operated in
accordance with Government COVID-19 guidelines.
Social and environmental responsibility:
The Group believes that a successful project is best achieved through
maintaining close working relationships with First Nations and
other local communities. This social ideology is at the
forefront of the Group's exploration initiatives and the Company
seeks to establish and maintain co-operative relationships with
First Nations communities, hiring local personnel and using
local contractors and suppliers where possible. Careful attention is
given to ensure that all exploration activity is performed in an
environmentally responsible manner and abides by all relevant mining and
environmental acts. Landore takes a conscientious role towards its operations,
and is aware of its social responsibility and its environmental duty.
30 September 2022
UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED 30 JUNE 2022
Group Group
Six months ended Six months ended
Notes 30 June 2022 £ 30 June 2021 £
Exploration costs 2 (398,341) (1,641,662)
Administrative expenses (818,316) (794,818)
Option income 3 448,779 14,438
Fair value losses (26,507) -
Operating loss and loss before tax (794,385) (2,422,042)
Income tax expense - -
Loss for the period (794,385) (2,422,042)
Other comprehensive income: Items that will subsequently be reclassified to
profit or loss
Exchange difference on translating foreign
operations 58,021 (22,881)
Other comprehensive income/(loss) for the year
net of tax 58,021 (22,881)
Total comprehensive loss for the period (736,364) (2,444,923)
Loss attributable to:
Equity holders of the Company (794,153) (2,421,812)
Non-controlling interests (232) (230)
(794,385) (2,422,042)
Total comprehensive loss attributable to:
Equity holders of the Company (736,132) (2,444,693)
Non-controlling interests (232) (230)
(736,364) (2,444,923)
Loss per share attributable to the
equity holders of the Company during the year
- Basic and diluted 4 (£0.007) (£0.024)
The Group's operating loss relates to continuing operations. The notes to the
financial statements form part of these interim financial statements.
UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 30 JUNE 2022
Share Share Retained Cumulative Non- Total
capital options earnings translation controlling £
£ reserve £ reserve interest
£ £ £
Balance at 46,108,934 921,133 (45,905,940) (348,111) (4,328) 771,688
1 January 2021
Loss for the period - - (2,421,812) - (230) (2,422,042)
Other comprehensive loss in the period - - - (22,881) - (22,881)
Issue of ordinary share capital 4,146,672 - - - - 4,146,672
Placing expenses (221,500) - - - - (221,500)
Shared-based payments (13,766) 51,459 - - - 37,693
Balance at 972,592 (48,327,752) (370,992) (4,558) 2,289,630
30 June 2021
50,020,340
Balance at 50,179,599 979,409 (49,692,080) (322,611) (4,901) 1,139,416
1 January 2022
Loss for the period - - (794,153) - (232) (794,385)
Other comprehensive income in the period - - - 58,021 - 58,021
Issue of ordinary share capital 909,605 - - - - 909,605
Exercise or lapse of warrants - (12,529) 12,529 - - -
Balance at 966,880 (50,473,704) (264,590) (5,133) 1,312,657
30 June 2022
51,089,204
The notes to the financial statements form part of these interim financial
statements.
UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AT 30 JUNE 2022
Group As at Group As at Group As at
Notes 30 June 2022 30 June 2021 31 December 2021
£ £ £
Assets
Non-current assets
Property, plant and equipment 80,618 20,666 81,059
Investments 609,213 - 287,259
689,831 20,666 368,318
Current assets
Trade and other receivables 87,312 145,354 75,122
Cash and cash equivalents 740,405 2,311,829 875,658
827,717 2,457,183 950,780
Total assets 1,517,548 2,477,849 1,319,098
Equity
Capital and reserves attributable to the Company's equity holders
Share capital 5 51,089,204 50,020,340 50,179,599
Share options reserve 966,880 972,592 979,409
Retained earnings 6 (50,473,704) (48,327,752) (49,692,080)
Cumulative translation reserve (264,590) (370,992) (322,611)
Total equity shareholders' funds 1,317,790 2,294,188 1,144,317
Non-controlling interests (5,133) (4,558) (4,901)
Total equity 1,312,657 2,289,630 1,139,416
Liabilities
Current liabilities
Trade and other payables 204,891 153,177 179,682
Income tax liabilities - 35,042 -
204,891 188,219 179,682
Total liabilities 204,891 188,219 179,682
Total equity and liabilities 1,517,548 2,477,849 1,319,098
The notes to the financial statements form part of these interim financial
statements.
UNAUDITED CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED 30 JUNE 2022
Group Group
Six months ended Six months ended
30 June 2022 30 June 2021
£ £
Cash flows from operating activities
Operating loss (794,385) (2,422,042)
Share-based payments charged as an expense - 37,693
Non-cash option receipt (299,186) -
Investment fair value losses 26,507 -
Depreciation of tangible fixed assets 8,371 3,107
Increase in receivables (8,406) (4,004)
Increase/(decrease) in payables 17,255 (258,776)
Net cash outflow from operating activities (1,049,844) (2,644,022)
Cash flows from financing activities
Issue of ordinary share capital 909,605 4,146,672
Issue costs - (221,500)
Net cash inflow from financing activities 909,605 3,925,172
Net (decrease)/increase in cash and cash equivalents (140,239) 1,281,150
Cash and cash equivalents at beginning of period 875,658 1,052,623
Exchange gain/(loss) on cash and cash equivalents 4,986 (21,944)
Cash and cash equivalents at end of period 740,405 2,311,829
The notes to the financial statements form part of these interim financial
statements.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2022
1 Basis of accounting and accounting policies
The financial statements have been prepared in accordance with International
Financial Reporting Standards ("IFRS") as adopted by the United Kingdom at the
time of preparing these financial statements (September 2022). The Directors
have elected not to apply IAS 34 Interim Financial Reporting.
The financial statements have not been audited and have been prepared on the
historical cost basis. The principal accounting policies adopted are
consistent with those adopted in the annual accounts to 31 December 2021.
2 Exploration expenditure and mineral properties
1 January 2022 Net Accumulated expenditure
£ Expenditure in period 30 June 2022
£ £
Junior Lake/Lamaune Lake 27,075,184 383,523 27,458,707
iminiska Lake 1,533,152 1,139 1,534,291
Lessard 705,347 4,133 709,480
Frond Lake 88,459 1,490 89,949
Wottam 61,558 - 61,558
Others, including Swole Lake, West Graham and Root Lake 90,893 8,056 98,949
29,554,593 398,341 29,952,934
Mineral properties at 30 June 2022 represent
accumulated costs to date incurred by Landore Resources Canada Inc., a
subsidiary of Landore Resources Limited. On acquisition of Landore Resources
Canada Inc. on 5 April 2006 the fair value of those costs incurred to date was
considered to be £nil. All subsequent expenditure in the period has been
charged to the income statement in accordance with the group accounting
policy.
3 Option income
In June 2022, Lithoquest Resources Inc. made an option payment to Landore
Resources Canada Inc. in connection with its Option Agreement to acquire a
100% interest in two gold projects. The payment consisted of cash and the
issuance of common shares in Lithoquest Resources Inc.
4 Loss per share
The loss per share is based on the loss for the period and the weighted number
of ordinary shares in issue during the period, being 108,209,176 (30 June
2021: 101,613,561).
Diluted loss per share
The potential ordinary shares which arise as a result of the options in issue
are not dilutive under the terms of IAS 33 because they would not increase the
loss per share. Accordingly, there is no difference between the basic and
dilutive loss per share.
5 Share capital
30 June 2022 31 December 2022
£ £
Issued:
111,101,280 (31 December 2021: 106,553,257) ordinary shares of £nil par value
51,089,204 50,179,599
In the period, 4,548,023 ordinary shares were issued following the exercise of
warrants. Proceeds from the exercises were £909,605 and the exercise price
of each warrant was £0.20.
Share
capital
£
At 1 January 2022 50,179,599
Shares issued in the period 909,605
At 30 June 2022 51,089,204
6 Retained earnings
£
At 1 January 2022 (49,692,080)
Loss for the period (794,153)
Reserve transfer for warrants exercised in the period 12,529
At 30 June 2022 (50,473,704)
7 Events after the interim reporting period
On 5 July 2022, 185,185 warrants were exercised, generating proceeds of
£37,037.
On 11 July 2022, 1,444,444 warrants were exercised, generating proceeds of
£288,889.
On 13 July 2022, 1,308,982 warrants were exercised, generating proceeds of
£261,797.
On 14 July 2022, 1,006,500 warrants were exercised, generating proceeds of
£201,300.
On 22 July 2022, the Company granted 1,150,000 share options to certain
Directors and employees. The share options vest immediately and are
exercisable for a period of 5 years at an exercise price of 25p.
On 25 July 2022, options over 300,000 ordinary shares were exercised,
generating proceeds of £48,300.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END IR XBLFXLKLFBBKRecent news on Landore Resources
See all newsREG - Landore Resources Ld - Completion of BAM Mineral Rights Acquisition
AnnouncementREG - Landore Resources Ld - Director’s Dealing
AnnouncementREG - AIM - AIM Notice - 27/03/2025
AnnouncementREG - Landore Resources Ld - Acquisition of Additional BAM Mineral Rights
AnnouncementREG - Landore Resources Ld - Receipt of Option Payment from Storm
Announcement