REG - Mila Resources Plc - Interim Results
18/03/2025 11:30
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RNS Number : 1402B Mila Resources PLC 18 March 2025
Mila Resources Plc / Index: LSE / Epic: MILA / Sector: Natural Resources
18 March 2025
Mila Resources Plc
("Mila" or "the Company")
Interim Results
Mila Resources Plc, the post-discovery gold exploration accelerator, is
pleased to present its interim results for the six-month period ended 31
December 2024.
Highlights:
· Option to purchase three highly prospective projects with proven gold
mineralisation in Queensland, Australia
· Mila is fully funded to undertake the exploration work, with
A$450,000 (approx. £230,000) to be committed within one year of executing the
Option Agreement.
· The Company has initially paid A$25,000 in cash and the issue of 16
million warrants exercisable at 1p per Ordinary Share for the Option
Agreement. The Option must be exercised within 12 months. However, any further
payments are subject to exploration and development success.
· Mila has defined a targeted development strategy which is initially
focussed on Yarrol; the project hosts a non-JORC compliant gold resource and
has been historically under-explored.
· Geophysics studies have provided valuable insight into key
mineralised features along a 2km section of the ~20km-long Yarrol Fault.
· Targeted drilling campaign planned to commence in Q2 to test priority
areas at Yarrol.
· Acquisition complements existing interest in the Kathleen Valley Gold
Project in Western Australia.
· Cash position of £951,845 as at 31 December 2024.
· Loss for the six-month period ended 31 December of £360,727 (2023:
£321,436).
Chairman Statement
Mila's strategy has been focused on targeting mining projects with robust
geological potential in proven mining regions, which we can then advance and
ultimately build value. During the six months ended 31 December 2024, the
Company identified an opportunity and entered into an option agreement to
explore three highly prospective gold and copper projects in Queensland to
complement our existing interest in the Kathleen Valley Gold Project
('Kathleen Valley') in Western Australia.
This acquisition was carefully structured to minimise upfront costs for Mila,
so that our investment was focussed on exploration whilst milestone
acquisition payments are linked to subsequent geological success and
development.
The new projects in Queensland, Yarrol, Mt Steadman and Monal, provide Mila
are gold and copper led projects. Yarrol is currently our primary focus and
has a non-JORC compliant gold resource. We are particularly drawn to the
significant upside potential along the ~20km-long Yarrol Fault that is
believed to be associated with a larger gold mineralising system and
accordingly we are now focusing our exploration activity on this area.
Historical geophysical data covering a 2km section of this fault has been
reviewed and analysed by our technical team, and priority drilling targets are
now being confirmed for Q2 this year. The upcoming Phase 1 drill programme at
Yarrol is fully funded from existing cash resources.
On a wider corporate level, we have undertaken a review of our cost base and
since the beginning of 2025 our cost base has been reduced materially. We are
fully funded to progress the EMX Option (see RNS dated 31 October 2024) and
will continue to update shareholders as exploration activity unfolds in
Queensland.
Post period end, as shareholders will be aware, we received notification that
Liontown Resources Limited is no longer pursuing the lithium rights at our
Kathleen Valley Project. Whilst this news was understandably disappointing,
they have provided us with a significant amount of information and data, which
we are in the process of evaluating and will be of great value as we determine
best next steps at the project. Kathleen Valley has proven gold occurrences,
offers promising lithium and tantalum grades, and is located in the tier-one
Wiluna-Norseman gold belt surrounded by major mining operators.
Looking ahead, the upcoming months are set to be increasingly active as we
commence drilling at Yarrol. We have worked hard to ensure our Company has
strong foundations for growth and with our multi-commodity portfolio, targeted
development approach and solid cash position we are now ready to deliver
results and build value. I look forward to sharing our progress with you and
would like to take this opportunity to thank our shareholders for their
continued support.
Finance and Corporate
Results
The interim results for the six months to 31 December 2024 show a loss of
£360,727 (2023: £321,436).
Cash Position
At 31 December 2024, cash and cash equivalents amounted to £951,845 (2023:
£1,684,073).
Directors
Mark Stephenson
Neil Hutchison
Jonathan Evans (appointed 19 December 2024)
Lee Daniels (resigned 5 November 2024)
Lindsay Mair (resigned 19 December 2024)
Corporate Governance
The UK Corporate Governance Code (September 2014) ("the Code"), as appended to
the Listing Rules, sets out the Principles of Good Corporate Governance and
Code Provisions which are applicable to listed companies incorporated in the
United Kingdom. As a standard listed company, the Company is not subject to
the Code, but the Board recognises the value of applying the principles of the
Code where appropriate and proportionate and has endeavoured to do so where
practicable.
On behalf of the board
Mark Stephenson Director
17 March 2025
MILA RESOURCES PLC
Interim Statement of Comprehensive Income (Unaudited) For the six months ended
31 December 2024
Six months Six months Year
ended 31 December ended 31 December ended 30 June
Notes 2024 2023 2024
Unaudited Unaudited Audited
£ £ £
Administrative expenses (360,727) (321,436) (689,298)
Operating loss (360,727) (321,436) (689,298)
Interest receivable - - -
Income tax expense 4 - - 21
Loss for the period (360,727) (321,436) (686,277)
Other comprehensive income / (loss) - - -
Total comprehensive income for the (360,727) (321,436) (686,277)
period attributable to equity holders
Earnings per share (basic and diluted) attributable to equity holders (p) 5 (0.07) (0.09) (0.15)
The income statement has been prepared on the basis that all operations are
continuing operations.
MILA RESOURCES PLC
Interim Statement of Financial Position (Unaudited) As at 31 December 2024
At 31 At 31 At 30
December 2024 December 2023 June 2024 Audited
Unaudited Unaudited
Notes £ £ £
ASSETS
Non-current assets
Exploration and evaluation 6 5,805,261 5,682,925 5,761,853
assets
5,805,261 5,682,925 5,761,853
Current assets
Trade and other receivables 46,597 129,176 31,521
Cash at bank and in hand 951,845 1,684,073 1,417,710
998,442 1,813,249 1,449,231
Total assets 6,803,703 7,496,174 7,211,084
LIABILITIES
Current liabilities
Trade and other payables 212,624 179,526 259,277
Convertible loan notes - 51,475 -
212,624 231,001 259,277
Total liabilities 212,624 231,001 259,277
Net assets 6,591,079 7,265,173 6,951,807
EQUITY
Share capital 7 5,419,653 5,368,178 5,419,653
Share premium 7 4,494,522 4,494,758 4,494,522
Share based payment 539,329 539,093 539,329
reserve
Retained losses (3,862,424) (3,136,856) (3,501,697)
Shareholders' equity 6,591,079 7,265,173 6,951,807
MILA RESOURCES PLC
Statements of changes in equity (Unaudited) For the six months ended 31
December 2024
Share Capital Share Premium Share Based Retained TOTAL
Account Payment Reserve Loss
£ £ £ £ £
Balance at 31 Dec 2023 5,368,178 4,494,758 539,093 (3,136,856) 7,265,173
Total comprehensive income for the period
- - - (364,841) (364,841)
Capital Raising - Issue of shares 51,475 - - - 51,475
Share based payments
- (236) 236 - -
Balance at 30 June 2024 5,419,653 4,494,522 539,329 (3,501,697) 6,951,807
Total comprehensive income for the period - - (360,727) (360,727)
Balance at 31 Dec 2024 5,419,653 4,494,522 539,329 (3,862,424) 6,591,079
MILA RESOURCES PLC
Statement of cash flow (Unaudited)
For the six months ended 31 December 2024
Six months Six months 12 months
to 31 December to 31 December to 30 June
2024 2023 2024
£ £ £
Cash flows from operating activities
Loss for the period (360,727) (321,436) (686,277)
Adjustments for:
Less: Interest Received - - (21)
Foreign exchange Gains / (Losses) - - 1,823
Operating cashflow before working capital movements (360,727) (321,436) (684,475)
Decrease / (Increase) in trade and other receivables (15,076) 6,283 17,183
Decrease in trade and other payables (44,153) (133,412) (108,155)
Net cash flow from operating activities (419,956) (448,565) (775,447)
Cash flow from investing activities
Funds used for drilling and exploration (45,909) (77,055) (16,558)
Interest received - - 21
Net cash outflow from investing activities (45,909) (77,055) (16,537)
Cash flow from financing activities
Proceeds from share issues - 2,000,000 2,000,000
Issue costs paid in cash - (289,845) (289,845)
Convertible Loan Note - 51,475 51,475
Net cash inflow from financing activities - 1,761,630 1,761,630
Net Increase / ( Decrease) in cash and cash equivalents (465,865) 1,236,010 969,647
Cash and cash equivalents at beginning of the period 1,417,710 448,063 448,063
Cash and cash equivalents at end of the period 951,845 1,684,073 1,417,710
MILA RESOURCES PLC
Notes to the financial statements
For the six months ended 31 December 2024
1 General information
Mila Resources Plc (the "Company'') was listed on the London Stock Exchange in
2016 with a view to acquiring projects in the natural resources sector. In
October 2024, the Company signed an exploration and option agreement relating
to three highly prospective gold projects in Queensland, Australia with EMX
Broken Hill Pty Ltd and EMX - NSW 1 Pty Ltd, both wholly owned subsidiaries of
EMX Royalty Corp ("EMX") which is listed on the Toronto and New York Stock
Exchanges.
The Company is domiciled in the United Kingdom and incorporated and registered
in England and Wales, with registration number 09620350.
The Company's registered office is Level 1 Devonshire House, Mayfair Place,
London, W1J 8AJ.
2 Accounting policies
The principal accounting policies applied in preparation of these consolidated
financial statements are set out below. These policies have been consistently
applied unless otherwise stated.
Basis of preparation
The interim unaudited financial statements for the period ended 31 December
2024 have been prepared in accordance with IAS 34 Interim Financial Reporting.
This interim financial information is not the Company's statutory financial
statements and should be read in conjunction with the annual financial
statements for the period ended 30 June 2024, which have been prepared in
accordance with International Financial Reporting Standards (IFRS) and have
been delivered to the Registrar of Companies. The auditors have reported on
those accounts; their report was unqualified and did not contain statements
under section 498 (2) or (3) of the Companies Act 2006.
The interim financial information for the six months ended 31 December 2024 is
unaudited. In the opinion of the Directors, the interim consolidated financial
information presents fairly the financial position, and results from
operations and cash flows for the period.
The Directors have made an assessment of the Company's ability to continue as
a going concern and the interim report has been prepared on the going concern
basis, which contemplates the continuity of normal business activity and the
realisation of assets and the settlement of liabilities in the normal course
of business. The Company, therefore, continues to adopt the going concern
basis in preparing its consolidated financial statements.
The financial information of the Company is presented in British Pounds
Sterling (£).
Critical accounting estimates and judgements
The preparation of interim financial information requires management to make
judgements, estimates and assumptions that affect the application of
accounting policies and the reported amounts of assets and liabilities and the
reported amounts of income and expenses during the reporting period. Although
these estimates are based on management's best knowledge of current events and
actions, the resulting accounting estimates will, by definition, seldom equal
related actual results.
In preparing the interim financial information, the significant judgements
made by management in
applying the Company's accounting policies and the key sources of estimation
uncertainty
Intangible assets - Exploration and evaluation expenditures (E&E)
Development expenditure
Expenditure on the construction, installation and completion of infrastructure
facilities including service, is capitalized initially within intangible fixed
assets and when the asset has formally commenced commercial production, then
it is transferred to property, plant and equipment and is depreciated from the
commencement of production as described in the accounting policy for property,
plant and equipment.
Drilling costs and intangible licenses
The Company applies the successful efforts method of accounting, having regard
to the requirements of IFRS 6 'Exploration for and Evaluation of Mineral
Resources'. Costs incurred prior to obtaining the legal rights to explore an
area are expensed immediately to the Statement of Comprehensive Income.
Expenditure incurred on the acquisition of a licence interest is initially
capitalised within intangible assets on a licence by licence basis. Costs are
held, unamortised, until such time as the exploration phase of the field area
is complete or commercial reserves have been discovered. The cost of the
licence is subsequently transferred into property, plant and equipment and
depreciated over its estimated useful economic life.
Exploration expenditure incurred in the process of determining exploration
targets is capitalised initially within intangible assets as drilling costs.
Drilling costs are initially capitalised on a licence by licence basis until
the success or otherwise has been established. Drilling costs are written off
unless the results indicate that reserves exist and there is a reasonable
prospect that these reserves are commercially viable. Drilling costs are
subsequently transferred into 'Drilling expenditure' within property, plant
and equipment and depreciated over their estimated useful economic life.
Impairment of Exploration and Evaluation assets
The Company assesses at each reporting date whether there is an indication
that an asset may be impaired. This includes consideration of the IFRS 6
impairment indicators for any intangible exploration and evaluation
expenditure capitalised as intangible assets. Examples of indicators of
impairment include whether:
a) the period for which the entity has the right to explore in the
specific area has expired during the period or will expire in the near future
and is not expected to be renewed.
b) substantive expenditure on further exploration for and evaluation
of mineral resources in the specific area is neither budgeted nor planned.
c) exploration for and evaluation of mineral resources in the
specific area have not led to the discovery of commercially viable quantities
of mineral resources and the entity has decided to discontinue such activities
in the specific area.
d) sufficient data exist to indicate that, although a development in
the specific area is likely to proceed, the carrying amount of the exploration
and evaluation asset is unlikely to be recovered in full from successful
development or by sale.
If any such indication exists, or when annual impairment testing for an asset
is required, the Company makes an estimate of the asset's recoverable amount,
which is the higher of its fair value less costs to sell and its value in use.
Any impairment identified is recorded in the statement of comprehensive
income.
3 Share-based payments
The Company records charges for share-based payments.
For warrant-based or option-based share-based payments, to determine the value
of the warrants or options, management estimate certain factors used in the
Black Scholes Pricing Model, including volatility, vesting date exercise date
of the warrants or option and the number likely to vest. At each reporting
date during the vesting period management estimate the number of shares that
will vest after considering the vesting criteria. If these estimates vary from
actual occurrence, this will impact on the value of the equity carried in
reserves.
4 Taxation
No tax is applicable to the Company for the six months ended 31 December 2023.
No deferred income tax asset has been recognised in respect of the losses
carried forward, due to the uncertainty as to whether the Company will
generate sufficient future profits in the foreseeable future to prudently
justify this.
5 Earnings per share
Basic earnings per ordinary 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. Diluted earnings per share is
calculated by adjusting the weighted average number of ordinary shares
outstanding to assume conversion of all dilutive potential ordinary shares.
The diluted profit per share is the same as the basic profit per share because
all warrants and options in issue were out of the money at 31 December 2024
and the Company reported a loss, hence including the additional dilution would
have resulted in a reduction of the loss per share.
Earnings Weighted average Per-share
£ number of shares amount
unit pence
Loss per share attributed to ordinary shareholders (360,727) 541,965,183 (0.07)p
6 Exploration and evaluation assets
At 31 At 31 At 30
December 2024 December 2023 June 2024 Audited
Unaudited Unaudited
£ £ £
Cost
Opening balance 5,761,853 5,535,102 5,605,870
Exploration costs capitalised in the period 43,408 147,823 155,983
Other - - --
movements
Net book 5,805,261 5,682,925 5,761,853
value
In October 2024, the Company signed an exploration and option agreement
relating to three highly prospective gold projects in Queensland, Australia
with EMX. At the period end the capitalised exploration and evaluation assets
totalled £5.8m (31 December 2023: £5.7m) and all such costs capitalised
related to exploration and evaluation activities conducted in relation to
Kathleen Valley.
Exploration and evaluation assets are regularly reviewed for indicators of
impairment. If an indicator of impairment is found an impairment test is
required, where the carrying value of the asset is compared with its
recoverable amount. The recoverable amount is the higher of the assets fair
value less costs to sell and value in use. The Directors are satisfied that no
impairments are required for the current period.
7 Share capital
Number Share Share
of shares capital premium Total
In issue £ £ £
Balance at 30 June 2024 541,965,183 5,419,653 4,494,522 9,914,175
Capital Raise - - - -
Issue Costs - - - -
Balance at 31 December 2024 541,965,183 5,419,653 4,494,522 9,914,175
As at 31 December, 2024 the Company also has the following options and
warrants:
Warrants and Options in Issue Number of Number of Weighted
Options in Warrants in average exercise price
Issue Issue
Expiry date
At 31 December 2024 6,000,000 242,044,111 £0.0432
Warrants issued to investors as part of £2m Capital Raise in Nov 2023 - per
the prospectus
- 200,000,000 £0.02 9 Nov 2025
Warrants issued as part of previous Capital Raise in Oct / Nov 2022 ((1))
- 30,983,982 £0.048 14 Nov 2025
Warrants issued relating to conversion of Liontown Convertible Loan
- 5,147,475 £0.02 29 Jan 2027
At 31 December 2024 6,000,000 478,175,568 £0.034
- - -
At 31 December 2024 6,000,000 478,175,568 £0.034
8 Subsequent events
In October 2024, the Company signed an exploration and option agreement
relating to three highly prospective gold projects in Queensland, Australia
with EMX Broken Hill Pty Ltd and EMX - NSW 1 Pty Ltd, both wholly owned
subsidiaries of EMX Royalty Corp ("EMX") which is listed on the Toronto and
New York Stock Exchanges.
In November 2024 Lee Daniels and Lindsay Mair resigned from the Board, being
replaced by Jonathan Evans, as non-executive director, shortly thereafter.
Mila completed a detailed review of historic data at the Yarrol site in EMX
which has now provided a clearer understanding of key mineralized features
focusing along a 2km section of the broader ~20km-long Yarrol fault. The
analysis confirms well-defined low-magnetic zones to the east of an intrusive
orebody, with historic high-grade gold intercepts closely associated with
these zones.
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