REG - Metals One PLC - Final Results for the Year Ended 31 December 2023
28/06/2024 14:00
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RNS Number : 4087U Metals One PLC 28 June 2024
28 June 2024
Metals One Plc
("Metals One" or the "Company")
Final Results for the Year Ended 31 December 2023
Metals One (https://metals-one.com/) (AIM: MET1), which is advancing
strategic metals projects in Finland and Norway, announces, announces its
unaudited results for the twelve months ended 31 December 2023. The full
annual report and accounts are available to view on the Company's website
at www.metals-one.com (http://www.metals-one.com/) and are being posted to
shareholders today along with a Notice of Annual General Meeting ("AGM")
convening the AGM for 11.00 a.m. on Monday, 22 July 2024 at Hill Dickinson
LLP, 8th Floor, The Broadgate Tower, 20 Primrose Street, London, EC2A 2EW.
Highlights
Finland - Black Schist Project (nickel, copper, cobalt, zinc)
· Completed a 1,548m diamond drill programme across eight holes at the
R1 Hook target within the Rauta 9-11 permit at the Finland - Black Schist
Project
o Designed to confirm the structure and potential for Terrafame-style
Ni-Cu-Co-Zn mineralisation, initial visual and portable X‐ray Fluorescence
("pXR") assessments of the core indicated potential intersections of this
style of black shale hosted mineralisation
o Identified significant intersections of mineralised black schists and
demonstrated geological continuity with existing resource at R1 which could
support future resource expansion
o Confirmed a synformal structure, indicating significant potential to the
east and prompting the Company to extend the current permit area in that
direction
· Entered into an agreement in relation to the Black Schist Project,
pursuant to which Gunsynd Plc (AIM: GUN) ("Gunsynd") agreed to acquire up to
25% of the project for a staged investment of up to £1 million
o Received first stage payment of £250,000 in November 2023, with Gunsynd
accordingly issued with 6.25% of the voting share capital of Metals One
Finland (a subsidiary of the Company which holds the Black Schist Project)
o Post-period end, Metals One announced an £895,000 Placing to advance the
Black Schist Project independently and, simultaneously, its decision to
terminate the Gunsynd farm-in, providing the Company with a three-year option
to regain 100% ownership by re-acquiring the 6.25% currently held by Gunsynd
for the same price
· Post-period end, received positive re-assay results from the P5 JORC
Exploration Target in the Paltamo area of the Black Schist Project - initial
observations support opportunity to convert P5 target to a mineral resource
o Engaged Mining Plus to undertake mineral resource estimate
Norway - SRH Råna Project (nickel, copper, cobalt)
· Norway - SRH Råna Project partner/operator Kingsrose Mining (ASX:
KRM) ("Kingsrose") completed 4,318m drill programme across 12 holes.
Kingsrose:
o Identified new zones of nickel sulphide mineralisation, further
demonstrating the scale potential of the largely underexplored Råna Intrusion
o Discovered mineralised bodies at the Rånbogen and Malmhaugen prospects
o Identified multiple high‐priority targets, including areas of
outcropping massive sulphide nickel mineralisation associated with conductive
geophysical anomalies extending to depth
· Post-period end, Kingsrose started the 2024 field season with
geological mapping, building on its understanding of the geology of the area
and, ultimately, helping to identify additional targets for core drilling
later this year
Alastair Clayton, Chairman of Metals One, commented:
"Metals One has listed with interests in strategic minerals projects including
substantial exploration carry exposure through farm-ins at a critical time for
the development of domestic sources of the strategic minerals required to
support the digital and green transitions in Europe. With European projects,
experienced partners, and funded work programmes in place, our projects are
well positioned for rapid advancement as we seek to establish sustainably
mined sources of strategic minerals, including copper and nickel, in Europe,
close to the centre of demand.
With very encouraging results from our projects in Norway and Finland, we are
well positioned for our continuing project development and to grow value for
shareholders. We look forward to updating shareholders and stakeholders on
further news as we continue our work programmes.
I would like to thank the team at Metals One and its advisers for their hard
work leading up to the IPO and project acquisitions, and also our shareholders
for their continued support of the Company's strategy. I believe our strategy
to focus on strategic minerals at this time and in the right jurisdiction will
pay off."
Financial Statements and Notes to the Accounts
For access to the full Financial Statements and Notes to the Accounts for the
year ended 31 December 2023, please click on the following
link: http://www.rns-pdf.londonstockexchange.com/rns/4087U_1-2024-6-28.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/4087U_1-2024-6-28.pdf)
Extracts are set out below.
METALS ONE PLC
CHAIRMAN'S STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
I am pleased to present the first annual financial report of Metals One since
its admission to the London Stock Exchange Alternative Investment Market
(AIM).
The twelve-months ended 31 December 2023 were an incredibly busy period for
the Company as it completed its AIM Initial Public Offering (IPO) and
concurrent acquisitions of European strategic minerals projects.
On 31 July 2023, the Company completed both the acquisition of Metals One
Finland, formerly FinnAust Mining Northern OY which holds 100% interest in the
Paltamo and Rautavaara Nickel-Zinc-Copper-Cobalt ("Ni-Zn-Cu-Co") projects in
the Kainuu Black Schist Belt in eastern Finland acquired from AIM-listed
Bluejay Mining Plc (AIM: JAY), and the acquisition of Scandinavian Resource
Holdings, which holds 80% of the shares in Narvik Nikkel AS which in turn
holds 100% of the Råna Project in Northern Norway through a Joint Venture
("JV") with Kingsrose Mining Ltd (ASX: KRM) ("Kingsrose"). On the same date,
the Company also completed its listing on the AIM market of the London Stock
Exchange, having raised £2.2 million for working capital for its projects.
Finland - Black Schist Project
Inferred Mineral Resource of 28.1 Mt Ni-Zn-Cu-Co
The Project in Finland comprises three exploration permits and four
reservations, together with three pending exploration permit applications and
one pending reservation application. The project is located across the Kainuu
(Paltamo) and Northern Savonia (Rautavaara) regions of eastern Finland, and is
adjacent to one of Europe's largest nickel miner, Terrafame. The primary
project development model Metals One is pursuing at the Black Schist Project
is for Terrafame-style shale-hosted Ni-Zn-Cu-Co resources.
The Black Schist Project contains an existing JORC Inferred Resource (at the
R1 target) of 28.1 Mt at a grade of 0.19% Ni (53,800t), 0.10% Cu (27,900t),
0.01% Co (3,400t) and 0.38% Zn (180,000t), and a JORC Exploration Target (at
the P5 target) of 16-24 Mt. The Company's strategy for the project is to show
a clear path to the economic extraction of its assets. This includes a
longer‐term ambition of potentially defining a 200 Mt resource, the scale of
which could underpin a significant supply of strategic minerals to the
European market at what Metals One expects to be a low cost of production and
low carbon intensity.
On 25 July 2023 the Company entered into an agreement during the year in
relation to its Black Schist Project, pursuant to which AIM-listed Gunsynd Plc
(AIM: GUN) agreed to acquire up to 25% of the projects for a staged investment
of up to £1 million. On 16 November 2023 the Company announced that it had
received the first stage payment of £250,000 from Gunsynd and accordingly
Gunsynd was issued with 6.25% of the voting share capital of Metals One
Finland (a subsidiary of the Company which holds the Black-Schist Project).
Post-period end, Metals One announced on 20 May 2024 an £895,000 Placing to
advance the Black Schist Project and, simultaneously, its decision to
terminate the Gunsynd farm-in. As part of the termination agreement, Metals
One has been granted a three-year option to re-acquire the 6.25% of Metals One
Finland currently held by Gunsynd.
The Company commenced a drilling programme at the Black Schist Project in
November 2023 and completed 1,548m of diamond drilling across eight holes at
the R1 Hook target. This target is a highly prospective extension to the R1
target in the Rauta 9‐11 Resource bearing licence area at the Black Schist
Project. Diamond drilling was designed to confirm the structure and
potential for Terrafame‐style Ni‐Cu‐Co‐Zn mineralisation. Pleasingly,
initial visual and portable (X‐ray Fluorescence (""pXR")") assessments of
the core indicated potential intersections of this style of black shale hosted
mineralisation.
Metals One reported drilling assay results from the drilling programme post
period end. Significant intersections of mineralised black schists were
identified in all eight drillholes, whilst drilling also demonstrated
geological continuity with the Company's existing Resource at R1 which could
support future resource expansion. Significantly, Hole RAU0002 intercepted
14.7m of mineralised black schists from 50m (0.18% Ni, 0.01% Cu, 0.01% Co,
0.57% Zn) and Hole RAU0003 intercepted 11m of mineralised black schists from
199.5m (0.22% Ni, 0.01% Cu, 0.01% Co, 0.55% Zn).
The results confirmed a synformal structure, indicating significant potential
to the east and prompting the Company to extend the current permit area in
that direction.
Post-period end, Metals One's work programme has centred on its P5 JORC
Exploration Target in the Paltamo area of the project. Underpinned by positive
assay results and using the funds raised in May 2024, Metals One intends to
progress its resource upgrade programme, targeting an anticipated increase in
resource from the current 28.1 Mt of Terrafame-type mineralisation. The
Company is on track to share its interpretation and updated resource in the
coming weeks and expects the updated resource to underpin a Scoping Study in
the second half of 2024 which would represent a key milestone in the Company's
transition from exploration and discovery to project development.
Norway - SRH Råna Project
Brownfield exploration of Råna Intrusion - fully carried
The Company's assets in Norway consist of an indirect 80% interest in the
Råna Project (Ni-Cu-Co), via its Joint Venture Narvik Nikkel AS, located on
the southern shores of the Ofotfjord and situated approximately 20 km to the
southwest of the port town of Narvik. The Råna Project consists of contiguous
exploration permits with a total area of 18.14 km(2) that cover the northern
and northwestern parts of the Råna mafic to ultramafic Intrusion ("Råna
Intrusion"). The project has proven potential for massive sulphide Ni-Cu-Co
mineralisation.
The Company's interest in the Råna Project is owned through a JV with
Kingsrose, who are operator of the project and have a right to earn up to 75%
over eight years through staged expenditure of up to A$15 million. We
announced in early February 2024 that Kingsrose had received all analytical
results from the 2023 core drilling programme, where a total of 4,318m were
drilled across 12 holes.
The identification of new zones of nickel sulphide mineralisation at our SRH
Råna Project further demonstrates the scale potential of the largely
underexplored Råna intrusion. In addition to the discovery of mineralised
bodies at the Rånbogen and Malmhaugen prospects, the drill programme
identified multiple high‐priority targets, including areas of outcropping
massive sulphide nickel mineralisation associated with conductive geophysical
anomalies extending to depth. The operator is aiming to drill these key
targets as part of its 2024 exploration programme alongside further
geophysical surveying across the broader intrusion. They continue to test the
true potential of the Råna intrusion to host one, if not more,
nickel‐copper‐cobalt‐PGM deposits of economic tenor.
Conclusion
Metals One has listed with interests in strategic minerals projects including
substantial exploration carry exposure through farm-ins at a critical time for
the development of domestic sources of the strategic minerals required to
support the digital and green transitions in Europe. With European projects,
experienced partners, and funded work programmes in place, our projects are
well positioned for rapid advancement as we seek to establish sustainably
mined sources of strategic minerals, including copper and nickel, in Europe,
close to the centre of demand.
With very encouraging results from our projects in Norway and Finland, we are
well positioned for our continuing project development and to grow value for
shareholders. We look forward to updating shareholders and stakeholders on
further news as we continue our work programmes.
I would like to thank the team at Metals One and its advisers for their hard
work leading up to the IPO and project acquisitions, and also our shareholders
for their continued support of the Company's strategy. I believe our strategy
to focus on strategic minerals at this time and in the right jurisdiction will
pay off.
Alastair Clayton
Chairman
28 June 2024
METALS ONE PLC
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
Notes Year ended 31
December 2023
£
Revenue
Revenue from continuing operations -
Expenditure
Other income -
Costs associated with the listing (598,094)
Administrative expenses 3 (1,005,709)
Share of loss of associate accounted for using the equity method 23 (150,744)
(1,754,547)
Finance costs
Finance expense (15)
Interest expense -
(15)
Loss on ordinary activities before taxation (1,754,562)
Taxation on loss on ordinary activities 7 -
Loss on ordinary activities after taxation (1,754,562)
Other comprehensive income
Exchange differences on translation of foreign operations 4 1,662
Loss and total comprehensive income for the year attributable to the owners of (1,752,900)
the Group
Earnings per share (basic and diluted) attributable to the equity holders 8 (1.77)
(pence)
Loss and total comprehensive income attributable to:
Owners of the parent (1,751,733)
Non-controlling interest (2,829)
(1,754,562)
The accompanying notes on pages 36 to 63 of the full annual report and
accounts form an integral part of these consolidated financial statements.
METALS ONE PLC
COMPANY NUMBER 13158079
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023
Notes As at
31 December 2023
£
NON-CURRENT ASSETS
Investment in associate 23 3,304,141
Exploration and evaluation 9 5,706,986
TOTAL NON-CURRENT ASSETS 9,011,127
CURRENT ASSETS
Trade and other receivables 11 238,048
Cash and cash equivalents 13 751,095
TOTAL CURRENT ASSETS 989,143
TOTAL ASSETS 10,000,270
NON-CURRENT LIABILITIES
Deferred consideration payable 16 85,000
TOTAL NON-CURRENT LIABILITIES 85,000
CURRENT LIABILITIES
Trade and other payables 15 432,323
Deferred consideration payable 16 150,000
Contingent consideration 17 250,000
TOTAL CURRENT LIABILITIES 832,323
TOTAL LIABILITIES 917,323
NET ASSETS / (LIABILITIES) 9,082,947
EQUITY
Called up share capital 18 2,084,500
Share premium account 18 7,775,715
Shares to issue 10 1,000,000
Share based payment reserve 20 337,673
Foreign exchange reserve 4 1,662
Retained earnings (2,363,774)
Equity attributable to equity holders of the parent 8,835,776
Non-controlling interest 247,171
TOTAL EQUITY 9,082,947
The accompanying notes on pages 36 to 63 of the full annual report and
accounts form an integral part of these consolidated financial statements.
The financial statements were approved by the board on 28 June 2024 and were
signed on its behalf by:
Alastair Clayton
Chairman
Going concern
The Group and Company's financial statements have been prepared on the going
concern basis, which contemplates that the Group and Company will be able to
realize its assets and discharge liabilities in the normal course of business.
Despite this, there can be no assurance that the Group or the Company will
either achieve or maintain profitability in the future and financial returns
arising therefrom may be adversely affected by factors outside the control of
the Group and the Company.
The Group and Company has had recurring losses since incorporation, and its
continuation as a going concern is dependent on the Group and Company's
ability to successfully fund its operations by generating sufficient cash flow
from operations. As it is unlikely to generate a positive operating cashflow
in the near the future the Group and Company will be required to obtain
additional financing from equity injections and / or the raising of cash
through bank loans or other debt instruments, to meet any working capital
deficits and fund the Group and Company's exploration activities and new mine
developments.
This indicates that a material uncertainty exists that may cast significant
doubt over the Group and Company's ability to continue as a going concern and
therefore their ability to realise their assets and discharge their
liabilities in the normal course of business.
Whilst acknowledging this material uncertainty, the directors consider it
appropriate to prepare the consolidated financial statements on a going
concern basis for the following reasons:
· As disclosed in the after balance sheet events note 27, the group
completed a fundraising to raise £895,000 to fund the planned development
scoping and exploration activities in Finland along with working capital
commitments for the year ahead;
· The Group has no committed exploration expenditure on its granted
mining licenses and has the ability to reduce all spend in the event that it
needs to conserve cash balances;
· The Group can reduce most discretionary administrative expenditure;
and
· The Group's Board of Directors have significant experience in the
debt and equity capital markets and specifically have a successful track
record in funding mining operations, new mine development and exploration
activities and are further considered capable of securing ongoing debt and
equity capital financing for the Group.
The consolidated financial statements do not include the adjustments that
would result if the Group and Company were unable to continue as a going
concern.
The auditors have made reference to going concern by way of a material
uncertainty within the financial statements.
Enquiries:
Metals One Plc via Vigo Consulting
Jonathan Owen, Chief Executive Officer +44 (0)20 7390 0234
Beaumont Cornish Limited (Nominated Adviser) +44 (0)20 7628 3396
James Biddle / Roland Cornish
www.beaumontcornish.com (http://www.beaumontcornish.com)
Shard Capital Partners LLP (Joint Broker) +44 (0)20 7186 9952
Damon Heath / Erik Woolgar
SI Capital Limited (Joint Broker) +44 (0)14 8341 3500
Nick Emerson
Capital Plus Partners Limited (Joint Broker) +44 (0)20 3821 6169
Keith Swann
https://www.capplus.co.uk/ (https://www.capplus.co.uk/)
Vigo Consulting (Investor Relations) +44 (0)20 7390 0234
Ben Simons / Kendall Hill
metalsone@vigoconsulting.com
About Metals One
Metals One is developing strategic metals projects in Finland (Black Schist
Project) and Norway (SRH Råna Project), with approximately £9 million of
exploration carry exposure through a farm-in agreement. Metals One is aiming
to help meet the significant demand for critical minerals by defining
resources on the doorstep of Europe's major electric vehicle OEMs and battery
manufacturers. Metals One's Black Schist Project in Finland, totalling 706
km(2) across three licence areas, has an Inferred Resource of 28.1 Mt
nickel-copper-cobalt-zinc and is located adjacent to one of Europe's largest
nickel mines operated by Terrafame. Metals One's fully carried SRH Råna
Project in Norway covers 18.14 km² across three contiguous exploration
licences, with significant opportunity for exploration of the Råna Intrusion,
and proven potential for massive sulphide nickel-cobalt-copper mineralisation.
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Market Abuse Regulation (MAR) Disclosure
The information set out below is provided in accordance with the requirements
of Article 19(3) of the Market Abuse Regulations (EU) No. 596/2014 which forms
part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018
('MAR').
Nominated Adviser
Beaumont Cornish Limited ("Beaumont Cornish") is the Company's Nominated
Adviser and is authorised and regulated by the FCA. Beaumont Cornish's
responsibilities as the Company's Nominated Adviser, including a
responsibility to advise and guide the Company on its responsibilities under
the AIM Rules for Companies and AIM Rules for Nominated Advisers, are owed
solely to the London Stock Exchange. Beaumont Cornish is not acting for and
will not be responsible to any other persons for providing protections
afforded to customers of Beaumont Cornish nor for advising them in relation to
the proposed arrangements described in this announcement or any matter
referred to in it.
Glossary
ASX Australian Stock Exchange
Co cobalt
Cu copper
intrusion process when magma penetrates existing rock, crystallises, and solidifies
underground to form intrusions, such as batholiths, dykes, or sills
metres
m
metal sulphide ore deposit which consists almost entirely of sulphides
massive sulphide
Mt million tonnes
Ni nickel
JORC Exploration Target Metals One's existing JORC Exploration Target of 16-24 Mt of Terrafame-type
mineralisation containing 0.18-0.27% Ni, 0.09-0.13% Cu, 0.01-0.02% Co and
0.33-0.50% Zn at P5 target. Refer to the Company's admission document here
(https://metals-one.com/wp-content/uploads/2023/07/Metals-One-Plc-Final-Admission-Document-25.7.23.pdf)
for further information
JORC Inferred Resource Metals One's existing Inferred Mineral Resource at the Black Schist Project of
28.1 Mt of Terrafame-type mineralised material at a grade of 0.19% Ni
(53,800t), 0.10% Cu (27,900t), 0.01% Co (3,400t) and 0.38% Zn (180,000t).
Refer to the Company's admission document here
(https://metals-one.com/wp-content/uploads/2023/07/Metals-One-Plc-Final-Admission-Document-25.7.23.pdf)
for further information
schist a medium-grade metamorphic rock formed from mudstone or shale
t tonnes
Zn zinc
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