REG - Neo Energy Metals - Annual Financial Report
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RNS Number : 3144K Neo Energy Metals PLC 04 December 2025
Neo Energy Metals plc / LSE: NEO, A2X: NEO / Market: Main Market of the London
Stock Exchange
4 December 2025
Neo Energy Metals plc
('Neo Energy' or 'the Company')
Results for the year ended 30 September 2024
Neo Energy, the near term, low-cost uranium developer, is pleased to announce
the approval and publication of its audited annual results for the year ended
30 September 2024.
The Annual Report and Financial Statements for the year ended 30 September
2024 are available on the Company's website
at https://www.neoenergymetals.com/ (https://www.neoenergymetals.com/) and
will also be available shortly on the National Storage Mechanism website
at: https://data.fca.org.uk/#/nsm/nationalstoragemechanism
(https://data.fca.org.uk/#/nsm/nationalstoragemechanism) .
This announcement contains inside information for the purposes of the UK
Market Abuse Regulation, and the Directors of the Company are responsible for
the release of this announcement.
ENDS
About NEO Energy Metals Plc
Neo Energy Metals plc is a uranium developer and mining company listed on the
main market of the London Stock Exchange (LSE: NEO).
The Company and its South African subsidiaries, namely Neo Uranium Resources
Beisa Mine (Pty) Limited and Neo Uranium Resources South Africa (Pty)
Ltd, have continued to strengthen the uranium portfolio through conditional
agreements for the acquisitions of 100% interest in the Beisa North
and Beisa South Uranium and Gold Projects and 100% interest in the Beatrix
4 mine and shaft complex, the processing plant complex and associated
infrastructure in the Witwatersrand Basin, located in the Free State Province
of South Africa. The combined projects' total SAMREC Code compliant resource
base comprises 117 million pounds of U₃O₈ and over 5 million ounces of
gold.
Additionally, the Company holds up to a 70% stake in the Henkries Uranium
Project, an advanced, low-cost mine located in South Africa's Northern Cape
Province and a 100% interest in the Henkries South Uranium Project,
extending the Henkries Project's strike length by 10km to a total of 46km of
shallow paleo-channels proven to host uranium mineralisation through extensive
drilling and feasibility studies backed by US$30 million in historic
exploration and development expenditure.
The Company is led by a proven board and management team with experience in
uranium and mineral project development in Southern Africa. Neo Energy's
strategy focuses on an accelerated development and production approach to
generate cash flow from Henkries while planning for long-term exploration and
portfolio growth in the highly prospective uranium district of Africa.
The Company's shares are also listed on the A2X Markets (A2X: NEO), an
independent South African stock exchange, to expand its investor base and
facilitate strategic acquisitions of uranium projects, particularly within
South Africa.
For enquiries contact:
KENYA SOUTH AFRICA
Jason Brewer - Executive Chairman Theo Botoulas - Chief Executive Officer
jason@neoenergymetals.com (mailto:jason@neoenergymetals.com) theo@neoenergymetals.com (mailto:theo@neoenergymetals.com)
Faith Kinyanjui - Investor Relations faith@neoenergymetals.com Michelle Krastanov - Corporate Advisor - AcaciaCap Advisors
(mailto:faith@neoenergymetals.com)
michelle@acaciacap.co.za (mailto:michelle@acaciacap.co.za)
Tel: +27 (0) 11 480 8500
James Duncan - Media Relations
james@jmdwrite.com (mailto:james@jmdwrite.com)
Tel: +27 (0) 79 336 4010
CHAIRMAN'S STATEMENT
I am pleased to report a year of significant progress and strategic
transformation for Neo Energy Metals PLC (the "Company" or "NEO"), both at the
corporate and operational level in the United Kingdom and South Africa where
several major milestones have been achieved. However, whilst I am pleased with
this progress, it is disappointing that the Company's trading on the London
Stock Exchange has been suspended for a prolonged period of time, subsequent
to the year end. This is due to a delay in the resignation of the previous
auditors and the appointment of the current auditors, in addition to the
complexity surrounding the reverse acquisition as detailed in note 5. This is
a lesson for all involved in the Company, and one that cannot be repeated.
The main highlight over the period was the approval and publication of the
Company's Prospectus by the Financial Conduct Authority ("FCA") in October
2023.
The Prospectus set out the proposed acquisition of Mayflower Energy Metals
Limited, which indirectly owned 50.1% of the share capital of Desert Star
Trading 130 Proprietary Limited, the legal and beneficial owner of a uranium
prospecting right NC30/5/1/1/2/11918 in the Northern Cape of the Republic of
South Africa commonly known as the Henkries Uranium Project.
The acquisition of Mayflower Energy Metals Limited provided the Company with
the opportunity to secure an interest in a high-grade uranium project where
independent geological consultants had identified the potential to increase
ore resources through the evaluation of identified exploration targets close
to existing resources, and to further advance the Henkries Uranium Project
towards production within a short period of time.
I believed that by securing a majority interest in a uranium project such as
the Henkries Uranium Project, that has been subject to extensive historical
exploration activities, as well as a feasibility study, represents a
significant opportunity for the Company's stakeholders to gain exposure to the
uranium exploration and mining sector and to South Africa's mining sector.
The acquisition of Mayflower Energy Metals Limited constituted a Reverse
Takeover under the Listing Rules since, as in substance, it resulted in a
fundamental change in its business. Accordingly, the acquisition of Mayflower
Energy Metals Limited was subject to shareholder approval, which was received
at a General Meeting held on 1 November 2023. At the General Meeting
shareholders also approved the change of the Company's name from Stranger
Holdings PLC to Neo Energy Metals PLC.
On 9 November 2023, the Company successfully completed its readmission to
trading on the Main Market of the London Stock Exchange following commitments
received for a £4.9 million capital raise (gross of fees and costs) through a
placing and subscription of shares at 0.75 pence and 1.25 pence per Ordinary
Share. On 10 November 2023, the Company successfully raised a further £0.5
million through a fully subscribed private placement at 1.25 pence.
The acquisition of an interest in the Henkries Uranium Project was intended to
be the first phase of a strategy to establish a portfolio of advanced and
producing uranium assets focussing on known and geologically proven energy
metal bearing regions in Africa.
I am very pleased to report that this strategy was successfully advanced
further by the Board and Executive Management during the period, and
subsequent to the end of this period, with the announcement of three
conditional acquisition agreements entered into in respect to:
(i) the Beisa North and Beisa South Uranium and Gold Projects on 13
August 2024;
(ii) the Beisa Uranium and Gold Mine including the Beatrix 4 mine and
shaft complex, the processing plant complex and associated infrastructure on 9
December 2024; and
(iii) the Henkries South Uranium Project on 14 October 2024, all of which
are located in South Africa.
These conditional acquisition agreements are firmly in line with the Company's
strategy and I am of the opinion that they are going to be transformational
for the Company.
Specifically, these conditional acquisition agreements included:
Beisa North and Beisa South Uranium and Gold Projects:
§ Agreement signed with Sunshine Mineral Reserve (Pty) Limited;
§ Contains one of the largest undeveloped uranium resources in South
Africa;
§ Located in the Witwatersrand Basin, South Africa's primary producing
uranium region with over 70 years of continuous uranium production;
§ Comprises two granted Prospecting Rights, which extend over an area of
approximately 80 km(2) and are located immediately north and south of the
previous producing high-grade Beisa Uranium Mine and existing Beatrix 4 Shaft,
processing plant and associated infrastructure; and
§ Contain SAMREC Code compliant Total Inferred Resources of 90.24 Mlbs of
U₃O₈ and 4.17 Mozs of gold.
Beisa Uranium and Gold Mine and Beatrix 4 Complex:
§ Agreement signed with Sibanye-Stillwater Limited;
§ Sibanye-Stillwater to become the Company's largest shareholder with up to
an approximate 40% shareholding;
§ Sibanye-Stillwater to have the right to appoint an initial two
representatives to the Company's Board and have the right to a pro rata right
of first refusal in respect of any proposed new issuance by the Company of new
shares to ensure it maintains its strategic shareholding in the Company;
§ The Beisa Uranium and Gold Mine is situated between, and adjoins, the Beisa
North and Beisa South Uranium Projects;
§ Operations commenced at the Beisa Uranium and Gold Mine in the early 1980s
and both uranium and gold were produced from the Beatrix 4 Shaft Complex and
adjoining processing facilities up until the facilities being placed on care
and maintenance in late 2023;
§ The Beatrix 4 Shaft Complex is fully permitted, with all licences, permits
and authorisations to be transferred to the Company's operating subsidiary
ahead of operations recommencing; and
§ Contain SAMREC Code compliant measured and indicated resources of 26.9Mlbs
of U₃O₈ and 1.2Mozs of gold.
Henkries South Uranium Project:
§ Agreement signed with Eagle Uranium SA (Pty) Ltd;
§ Located immediately south of and is contiguous to the Company's existing
Henkries Uranium Project;
§ Comprises one granted Prospecting Licence that extends over approximately
1,050km(2);
§ More than doubles the Company's strategic landholding in the uranium
prospective region from 742km(2) to almost 1,800km(2); and
§ Contains multiple radioactive anomalies and given the extent of these
radiometric anomalies, these targets are expected to add significantly to the
resource potential at the Henkries Uranium Project as further future resource
drilling and metallurgical test work is completed.
Over the past year, shareholders have seen a significant change in the
Company's Board and Executive Management, and we have further strengthened our
corporate and technical capabilities, as a result of both the acquisition of
Mayflower Energy Metals Limited and following the announcements for the three
conditional acquisition agreements. There were several key appointments made
during the period and subsequent to the year end. On 9 November 2023, Sean
Heathcote was appointed as Chief Executive Officer, and myself, Jackline
Muchai and Bongani Raziya as Non-Executive Chairman and Non-Executive
Directors respectively. The Company also appointed Andrew Searle as Chief
Financial Officer.
Subsequent to the year end, it was agreed that I would assume more executive
management responsibilities from 25 March 2024, given the material increase in
the Company's activities, and my broad mining and mining finance experience
here in Africa. We also announced that Theo Botoulas would assume the Chief
Executive Officer role in South Africa, with Sean Heathcote assuming the role
of an Executive Technical Director.
Given that our key assets are all located in South Africa, it was considered
important for the Company to have a presence in the country's capital and
financial markets and therefore a secondary listing of the Company's
securities was completed on 27 February 2024, on A2X Markets, an independent
stock exchange based in South Africa. Subsequent to year end on 30 June 2025,
the Company also announced that it would pursue a further secondary listing of
the Company's securities on the JSE Limited, a Johannesburg based Stock
Exchange.
We have also appointed a number of corporate and strategic advisors,
consultants and service providers in South Africa and in the United Kingdom.
In June 2024, AcaciaCap Advisors Proprietary Limited ("AcaciaCap Advisors")
were appointed as corporate advisors to assist with the Company's proposed new
uranium mine purchases and advanced project acquisitions in South Africa and
were later appointed to assist with the secondary listing on the JSE Limited.
In the United Kingdom, we also announced the appointment of Bacchus Capital
Advisers Limited on 16 January 2025, as our strategic and financial advisor
and shortly after, on 30 January 2025, announced the appointment of Shore
Capital Stockbrokers Limited as our corporate broker.
On 11 July 2025, Light Consulting Proprietary Limited were appointed to
provide company secretarial services in South Africa, James Duncan of
JMDwrite, was appointed as the Company's media and investor communications
advisor and South African based Utshalo, was also appointed to assist us in
broadening our investor and shareholder base in South Africa. We also
announced on 11 July 2025, the appointment of CMC Markets UK Plc, trading as
CMC CapX ("CMC"), as the Company's joint broker in the United Kingdom.
During the year and subsequent to year end, we have continued to make further
progress in respect to the three conditional acquisition agreements, and this
has included:
§ the Company's subsidiary Neo Uranium Resources Beisa Mine (Pty) Ltd,
entering into an agreement with South African mining company, Siyakhula Sonke
Empowerment Corporation (Pty) Ltd, as part of the Company's commitment to
advancing Broad-Based Black Economic Empowerment in South Africa and receiving
notification from Sibanye-Stillwater Limited that regulatory applications had
been formally submitted to the Department of Mineral Resources and Energy in
South Africa, in respect to approvals required under Section 11 and Section
102 of the Minerals and Petroleum Resources Development Act of 2002 for the
proposed acquisition of the Beisa Uranium and Gold Mine;
§ the National Nuclear Regulator ("NNR") of South Africa awarding the Company
a Certificate of Registration (COR-302) for the Henkries Uranium Project;
§ receipt of final approvals from the South African Reserve Bank for a
foreign inter-company shareholder loan facility of ZAR1.2 billion to be
provided by the Company to its South African subsidiaries; and
§ receiving further confirmation from Sibanye-Stillwater Limited that the
South African Reserve Bank had also provided their approval to hold shares in
the Company as part of the proposed transaction to acquire the Beisa Uranium
and Gold Mine including the Beatrix 4 mine and shaft complex, enabling the
commencement of exploration and sampling. NEO also undertook comprehensive
personnel training to ensure the health and safety of its workforce and local
communities. An updated Order of Magnitude Capex and Opex study conducted by
Erudite Strategies confirmed the Henkries Project as a low-cost development
project with robust economic fundamentals.
I believe the progress achieved over the past year has positioned the Company
on a clear path towards achieving its strategic goals and placing it in a
strong position to deliver sustainable value for all stakeholders.
On behalf of the Board, I would like to thank my fellow Directors, our
shareholders, advisors, and many team members, for their continued commitment
and support. I would also like to thank Sibanye-Stillwater Limited and all our
key stakeholders in South Africa and the United Kingdom for their support,
particularly given the prolonged period of suspension in the Company's
securities from trading. I believe this Company has a tremendous opportunity
to advance its uranium and gold strategy in South Africa and I look forward to
playing my part and supporting our key management in delivering on that
strategy.
Jason Brewer
Executive Chairman
STRATEGIC REPORT
This report outlines the significant milestones, operational progress, and
strategic developments achieved during this transformative period, setting the
foundation for future growth in the uranium sector.
Results for the Year Ended 30 September 2024
The period under review was pivotal for the Company, marked by a successful
corporate restructuring, a fundamental change in its business, a new strategy,
re-admission to trading on the London Stock Exchange and then followed by
significant progress in advancing the Company's strategy to establish a
portfolio of advanced and producing uranium projects located in known and
geologically proven uranium regions in Africa.
Reverse Takeover ("RTO") and Re-Admission to Trading
Following the approval by the Financial Conduct Authority of a Prospectus
issued by the Company on 5 October 2023, resolutions were passed by
shareholders at a General Meeting held on 1 November 2023, approving a reverse
takeover transaction by the Company of Mayflower Energy Metals Limited, which
indirectly owned 50.1% of the share capital of Desert Star Trading 130
Proprietary Limited, the legal and beneficial owner of the Henkries Uranium
Project.
Shareholders further approved the change of the Company's name from Stranger
Holdings PLC to Neo Energy Metals PLC.
The Company was officially re-admitted to trading on the London Stock Exchange
on 9 November 2023.
Commitments Received for £4.9 Million Capital Raise
The Company successfully completed its readmission to trading on the London
Stock Exchange following commitments received for a £4.9 million capital
raise (gross of fees and costs) through a placing and subscription of shares
at 0.75 pence and 1.25 pence per Ordinary Share.
On 10 November 2023, the Company successfully raised a further £0.5 million
through a fully subscribed private placement at 1.25 pence.
Strategic Direction
The strategic direction of the Company changed as a result of the reverse
takeover transaction and following the acquisition of a majority interest in
the Henkries Uranium Project.
The Company advanced this strategy further with agreements entered into during
the year and post year end, for the conditional acquisition of the Beisa North
and Beisa South Uranium and Gold Projects, the Beisa Uranium and Gold Mine
including the Beatrix 4 mine and shaft complex, and the Henkries South Uranium
Project, all located in South Africa.
Strengthened Leadership Team
The Company strengthened its management capabilities with several key
appointments made on completion of the reverse takeover transaction and during
and post the period.
Jason Brewer was appointed Non-Executive Chairman, and subsequently assumed
the role of Executive Chairman. Sean Heathcote was appointed as Chief
Executive Officer, before assuming an Executive Technical Director role.
Jackline Muchai, Bongani Raziya and Quinton van der Burgh were appointed as
Non-Executive Directors, with the latter resigning post year end.
Theo Botoulas was appointed as the Company's new Chief Executive Officer and
is based in South Africa, and Andrew Searle was appointed as the Company's
Chief Financial Officer.
Secondary Listings in South Africa
A secondary listing of the Company's shares was completed on A2X Markets, an
independent stock exchange in South Africa on 27 February 2024.
The Company also announced plans for a further secondary listing of the
Company's shares on the Johannesburg Stock Exchange, which is expected to be
completed in early 2026.
Suspension of Trading
The Company's shares were suspended from trading on the London Stock Exchange
on 31 January 2025, as a result of a delay in the publication of the Company's
annual report and financial statements for the year ended 30 September 2024.
As at the date of this report the suspension in trading is still in place.
Upon publication of the Company's annual report and accounts for the year
ended 30 September 2024 and its interim accounts for the six-month period
ended 31 March 2025, the Company will request that the current
suspension from trading is lifted.
Operational Highlights
During this period, the Company progressed feasibility studies at the Henkries
Uranium Project, where it secured rights to a majority interest following the
acquisition of Mayflower Energy Metals Limited in November 2023.
The Company further progressed its strategy of establishing a broader
portfolio of advanced and producing uranium assets. During and post the period
under review, the Company focused on execution, due diligence and satisfaction
of key conditions of the conditional agreements entered into, to acquire the
Beisa North and Beisa South Uranium and Gold Projects, the Beisa Uranium and
Gold Mine including the Beatrix 4 mine and shaft complex, as well as the
Henkries South Uranium Project.
1. Henkries Uranium Project
Resource Expansion
Work commenced during the period under review on the planning of a resource
expansion definition drilling programme.
With less than 10% of the Prospecting Licence having been subject to previous
exploration work, the Company is of the opinion that there is potential for
both an increase in uranium resources and potential for major new uranium
discoveries.
This work was not completed during the period under review or post the period,
as a result of the Company's technical management team's focus on activities
associated with the conditional agreements to acquire the Beisa North and
Beisa South Uranium and Gold Projects and the Beisa Uranium and Gold Mine.
Sampling Work
Un-assayed samples from historical drilling work were prepared for planned
testing as part of the planned resource expansion definition drilling
programme.
Over 2,000 samples were collated and prepared for analyses. This work was not
completed during the period under review or post the period, again as a result
of the Company's technical management team's focus on activities associated
with the conditional agreements to acquire the Beisa North and Beisa South
Uranium and Gold Projects and the Beisa Uranium and Gold Mine.
Feasibility Study Update
The Company appointed South African based mining consultancy group Erudite
Strategies (Pty) Limited to complete an independent update report of both the
operating and capital cost estimates previously defined in the feasibility
study completed on the Henkries Uranium Project by Anglo Operations Limited.
The results of this work completed by Erudite Strategies (Pty) Limited
confirmed that the Henkries Uranium Project:
(i) has forecast low operating and capital cost and overall robust
project economics;
(ii) can be accelerated into production at a lower capital and
operating cost compared to many of its peers; and
(iii) financial modelling of the detailed cost estimates has further
confirmed its robust and attractive underlying economics.
Key results included:
(i) annual average production of 567,000 lb U(3)O(8);
(ii) annual average sales revenue of US$51.0 million;
(iii) cash operating costs of US$36.8/lb; and
(iv) a NPV of US$106.6 million and an IRR of 43.4%.
Site Inspections
An inspection of the Henkries Uranium Mine Project, by South Africa's National
Nuclear Regulator, was completed post the period under review in December
2024.
The inspection confirmed compliance with all applicable regulations and
authorisations and was completed as part of continuous monitoring programmes
and annual compliance assurance and event reporting systems.
The inspection was undertaken in respect to Section 2.1 of Certificate of
Registration 302 under section 22 of the South African National Nuclear
Regulator Act, 1999 (Act No 47 of 1999).
2. Conditional Acquisition Agreements
During and post the period under review, the Company focused on execution, due
diligence and satisfaction of key conditions of three conditional agreements
that it had entered into, to acquire, inter alia:
§ The Beisa North and Beisa South Uranium and Gold Projects, following an
agreement signed with Sunshine Mineral Reserve (Pty) Limited;
§ The Beisa Uranium and Gold Mine including the Beatrix 4 mine and shaft
complex, and the Henkries South Uranium Project, following an agreement signed
with Stillwater Sibanye Limited; and
§ The Henkries South Uranium Project, following an agreement signed
with Eagle Uranium SA (Pty) Ltd.
The acquisitions were subject to completion of technical, financial and legal
due diligence, receipt of all applicable regulatory and shareholder approvals,
as well as payment of cash and share based consideration to the vendors.
The Company has confirmed that it completed its technical, financial and legal
due diligence on the various acquisitions to its satisfaction, during and post
the period under review and has, as at the date of this report, executed all
necessary legal documentation in regards to the acquisitions.
Receipt of regulatory approvals advanced during and post the end of the period
under review, with a number of key approvals received in South Africa from the
South African Reserve Bank.
Approvals required from the Department of Mineral Resources and Energy in
South Africa, under Section 11 and Section 102 of the Minerals and Petroleum
Resources Development Act of 2002 remain outstanding as at the date of this
report.
Approvals required in the United Kingdom including a Rule 9 Waiver being
obtained in accordance with the City Code on Takeovers and Mergers and
shareholder approval at a forthcoming General Meeting of the Company, remain
outstanding as at the date of this report.
FINANCIAL REVIEW
This financial review summarises the performance, financial position, and key
movements for Neo Energy Metals PLC ('the Group') for the year ended 30
September 2024, with comparative figures for the prior period, the prior
period being an eighteen month period.
1. Results Overview
§ Group loss after tax: £6.826 million (2023: £2.3k profit).
§ Net liabilities: £(0.30) million (2023: £(0.01) million).
§ Cash and cash equivalents: £2,585 (2023: £2,304).
§ Loss per share: 0.6 pence (2023: 0.00 pence).
The current year's loss is primarily driven by non-cash accounting effects
from the reverse takeover (RTO) and related one-off charges. The consolidated
figures for the period ended 30 September 2023 are unaudited.
2. Consolidated Statement of Comprehensive Income (Summary)
Item (£) FY24 FY23 (18m)
Unaudited
Administrative (expenses) / income (2,018,319) 2,042
Reverse acquisition expense (6,115,898) -
Finance costs (748) -
Other income 1,308,036 -
Finance income 959 303
(Loss)/profit before tax (6,825,970) 2,345
Taxation - -
(Loss)/profit after tax (6,825,970) 2,345
(Loss)/profit per share (0.6 pence) 0.0 pence
Other income for the year included a £1.3 million gain from the settlement of
a historical bond facility. This non-recurring gain arose from the release of
a residual liability and reflects the successful restructuring of the Group's
financing arrangements.
During the year, the Group recognised a £6.12 million reverse acquisition
expense arising from the application of IFRS 3 Business Combinations and IFRS
10 Consolidated Financial Statements in accounting for the reverse takeover of
Neo Uranium Resources South Africa (Pty) Ltd. This represents the difference
between the fair value of the equity instruments deemed to have been issued
and the fair value of the net assets of the listed entity acquired. The charge
has been classified as an exceptional, non-recurring item as it relates solely
to the listing transaction and does not reflect the Group's underlying
operating performance.
3. Consolidated Statement of Financial Position
Item (£) FY24 FY23
Unaudited
Total assets 18,421,517 479,117
Intangible assets 18,282,999 466,928
Current liabilities (18,687,915) (490,416)
Non-current liabilities (26,793) -
Net liabilities (293,191) (11,299)
Equity attributable to owners (277,020) (763)
Non-controlling interests (16,171) (10,536)
Intangible assets rose to £18.28 million, reflecting project acquisitions.
The net liability position arises primarily due to the accounting treatment of
the reverse acquisition.
4. Parent Company Statement of Financial Position
Item (£) FY24 FY23
Total assets 4,453,235 489,695
Current liabilities (857,593) (3,900,881)
Non-current liabilities (26,793) (24,540)
Net assets/(liabilities) 3,568,849 (3,435,726)
The parent company returned to positive equity of £3.57 million following the
RTO-related capital reorganisation and share issues. The net cash position of
the Company at the year end was £1,080 (2023: £77) and its external debt was
substantially reduced to £28,715 (2023: £2,241,867) as a result of the RTO.
5. Cash Flow and Equity Movements
§ Operating loss: £6.826 million 2023: £2.3k profit.
§ Equity activity: multiple share issues; share premium increased to £8.66
million.
§ Share-based payment charge: £5.55 million; Reverse acquisition reserve
£2.32 million.
§ Closing equity reflects the complex share structure following the RTO and
associated transactions.
6. Conclusion
The results for year ended 30 September 2024 reflect the transformation of Neo
Energy Metals PLC through the RTO process.
Despite a headline accounting loss, the Group is well-positioned with
substantial intangible assets, improved equity position at the parent level,
and clear funding pathways.
A notable financial highlight was a gain on the settlement of bonds, which
positively impacted the financial position. Resolutions were passed by
noteholders to redeem Series 2017-F2 Loan Notes by issuing shares in Neo
Energy Metals PLC at 15p in the British pound, eliminating a cash liability of
£2.017 million and a gain to the Company of £1.3 million.
Amounts owing to several creditors and service providers were also converted
to equity upon completion of the reverse takeover transaction of Mayflower
Energy Metals Limited.
Capital raised and committed during the period under review was applied to
meet working capital costs of the Group in the United Kingdom and in South
Africa.
In South Africa, these working capital costs included expenses associated with
exploration, feasibility study updates, site management and management costs
of the Henkries Uranium Project. These costs also included expenses incurred
by the Company in regard to the legal, technical and financial due diligence
costs associated with the entering into of conditional agreements to acquire
the Beisa North and Beisa South Uranium and Gold Projects, the Beisa Uranium
and Gold Mine including the Beatrix 4 mine and shaft complex, and the Henkries
South Uranium Project.
The Company's future funding requirements comprise:
§ updated feasibility study costs, and mine development and capital
expenditure requirements of the Henkries Uranium Project;
§ cash-based acquisition payments due to the vendors of the Beisa North and
Beisa South Uranium and Gold Projects, the Beisa Uranium and Gold Mine
including the Beatrix 4 mine and shaft complex, and the Henkries South Uranium
Project;
§ mine re-development and capital expenditure requirements for re-commencing
mining and processing activities at the Beisa Uranium and Gold Mine including
the Beatrix 4 mine and shaft complex; and
§ exploration and mine development costs at the Beisa North and Beisa South
Uranium and Gold Projects and the Henkries South Uranium Project.
During the period under review and post the period, the Company has appointed
several leading independent investment and merchant banking groups, brokers
and strategic corporate advisors to assist the Company in securing the
necessary capital to meet its funding requirements.
The Company has to date received strong support and indications of funding
availability from these investment and merchant banking groups, brokers and
strategic corporate advisors.
The Company is confident of being able to secure its future funding
requirements given the advanced nature of its underlying assets, the
significant infrastructure, the size of the uranium and gold resources as
determined by independent consultants and the strength in both the uranium and
gold markets and interest from both equity and debt funders to support the
Company in delivering on its strategy.
7. Outlook
The Board of Directors have positioned the Company as a near-term uranium and
gold producing company with the Henkries Uranium Project located in the
Northern Cape Province of South Africa and the three conditional conditional
agreements for the acquisition of the Beisa Uranium and Gold Mine and Beatrix
4 shaft complex, the processing plant complex and associated
infrastructure and the Beisa North and Beisa South Uranium and Gold
Projects all located in the Free State Province of South Africa.
The Company is also currently the only listed pure uranium exploration and
mine development company on the London Stock Exchange.
The Board of Directors believe that the successful positioning of the Company
in London's capital markets, provides the opportunity to raise the necessary
capital in the current strong uranium and gold markets, and deliver on its
strategy of establishing a broader portfolio of advanced and producing uranium
assets.
The Company's immediate focus is on:
§ Completing the acquisitions of the Beisa North and Beisa South Uranium and
Gold Projects, the Beisa Uranium and Gold Mine including the Beatrix 4 mine
and shaft complex, and the Henkries South Uranium Project;
§ Completing mine re-development studies for the re-start of mining and
processing activities at the Beisa Uranium and Gold Mine including the Beatrix
4 mine and shaft complex;
§ Completing mine development and capital expenditure studies for the
commencement of construction activities at the Henkries Uranium Project;
§ Complete additional exploration studies at the Beisa North and Beisa South
Uranium and Gold Projects and as part of the Company's broader consolidation
into planned activities at the Beisa Uranium and Gold Mine; and
§ Complete additional exploration studies at the Henkries South Uranium
Project and as part of the Company's broader consolidation into planned
activities at the Henkries Uranium Project.
The combined Beisa Uranium and Gold Mine and Beisa North and Beisa South
Uranium and Gold Projects have total SAMREC Code compliant resources of
117 million pounds of uranium and over 5.4 million ounces of gold -an in
situ mineral value of US$30.4 billion based on current prevailing uranium and
gold prices at 30 September 2025.
The Company's strategic focuses is on an accelerated development and
production approach to generate cash flow from the Beisa Uranium and Gold
Mine, which has the necessary permits and approvals and infrastructure
already, and from the Henkries Uranium Project where independent economic
studies completed during the period confirmed the Project's robust and
attractive underlying economics, and that it can be accelerated into
production at a lower capital and operating cost compared to many of its
peers.
This 'brownfield' mine development strategy is considered a low-risk strategy
by the Board and one that the Board believes is attractive to shareholders and
new investors given the significant sunk capital and established
infrastructure.
The Company's focus is on brownfield uranium mine development, and
accordingly:
§ Compared to greenfield projects, the Company is not required to sink major
new mine shafts, as the existing mine shaft and related facilities are in
place;
§ All the Company's current uranium projects and uranium and gold projects
that are subject to the conditional acquisition agreements, benefit from
significant sunk capital - sunk capital on infrastructure and mine development
and sunk capital on feasibility studies and mine development studies;
§ This sunk capital has also been made by major global mining companies such
as Anglo American PLC and Sibanye-Stillwater Limited, and is of a very high
standard; The availability of pre-existing infrastructure reduces the need for
major up-front capital outlays for shaft development, construction, and
equipment procurement;
§ Consequently, overall project capital development costs are likely to be
significantly lower than typically required;
§ This reduction in capital requirements supports the Company's potential to
achieve near-term production capability and may influence interest from
investors, lenders, and partners; and
§ The Company is now focused on establishing itself as being 'operational
ready' for the mine development and operational activities ahead. This
reflects the significant mine development studies that have been already
completed on these planned mining operations, the Company's current mining and
prospecting rights, identified gold and uranium reserves and resources, and
the forecast accelerated time frames required to get into production enabled
by the extensive existing infrastructure.
Current uranium and gold market trends and dynamics also support the Company's
plans to advance its assets through to production. The profitability of the
Company's uranium and gold projects and the sentiment towards the Company from
equity and debt investors, in regards to supporting its future fundraising
activities, are heavily influenced by the prevailing uranium and gold
commodity prices and market dynamics.
Record gold prices in 2025 and increasing demand and prices for uranium have
greatly improved the risk appetite by investors for uranium and gold-exposed
mining companies. That backdrop provides a positive outlook for new mine
developers in these sectors such as the Company.
The Board of Directors look forward with confidence to a bright future for the
Company and look forward to advancing its strategy in South Africa.
8. Going Concern
These financial statements have been prepared on the assumption that the
Company is a going concern.
When assessing the foreseeable future, the Directors have reviewed a period of
at least twelve months from the date of approval of this report. The Directors
have prepared a cash flow forecast to 31 December 2027, which shows that the
Company and Group will be unable to meet their liabilities as and when they
fall due until further equity or debt funds are obtained. The Directors
acknowledge the disclaimer of opinion in respect of going concern, included in
the audit report, due to the factors detailed below, but consider that the
Company and Group can continue to operate as a going concern.
The acquisition of Mayflower Energy Metals Limited and the Reverse Takeover
transaction provided the Company with the opportunity to raise new funds and
commence its strategy of securing a majority interest in a mining project that
provides the opportunity for the Company's stakeholders to gain exposure to
the uranium exploration and mining sector and to South Africa's mining sector.
This strategy has been further advanced during the period and post the period
and the three conditional acquisition agreements provide the Company with
additional projects and stakeholders that give the Directors increased
confidence in the ability of the Company and Group to raise equity funding and
to continue to operate as a going concern.
This confidence is drawn from the underlying strength of the 'brownfield'
uranium mine development strategy that the Directors are implementing which is
considered a low-risk strategy and one that is attractive to shareholders and
new investors given the significant sunk capital and established
infrastructure and as such provides the necessary platform for the Company to
continue to secure the necessary funding to continue to operate as a going
concern until such time as the underlying projects are able to generate
profits and positive cash flow from operations..
The position of such a significant and supportive shareholder and one with
significant capital resources provides confidence in the Company's and Group's
ability to raise any potential additional funding that it may need.
Accordingly, the going concern basis has been adopted in preparing the
financial statements.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Note Year ended 30 September 2024 18 month ended 30 September 2023 Unaudited
£ £
Administrative (expenses)/income 8 (2,018,319) 2,042
Exceptional items - reverse acquisition expense 5 (6,115,898) -
Operating (loss)/profit before finance costs (8,134,217) 2,042
Finance costs 11 (748) -
Other income 12 1,308,036 -
Finance income 11 959 303
(Loss)/profit before tax (6,825,970) 2,345
Taxation 13 - -
(Loss)/profit after tax from continuing operations (6,825,970) 2,345
Total (loss)/profit for the year (6,825,970) 2,345
Total (loss)/profit attributable to:
Owners of the Parent Company (6,816,159) (374)
Non-controlling interests (9,811) 2,719
(6,825,970) 2,345
Other comprehensive income
Items that may be reclassified subsequently to profit and loss account:
Exchange differences on translation of foreign operations (97,397) -
Total other comprehensive income (6,923,367) 2,345
Total comprehensive income for the period attributable to:
Owners of the Parent Company (6,913,556) (374)
Non controlling interests (9,811) 2,719
(6,923,387) 2,345
(Loss)/earnings per share - basic and diluted from continuing and total 14 (0.006) 0.00
operations (pence)
The notes on pages 71 to 109 form part of these financial statements.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
30 September 2024 30 September 2023 Unaudited
Note
ASSETS £ £
Non-Current Assets
Intangible assets 16 18,282,999 466,928
Total non-current assets 18,282,999 466,928
Current Assets
Trade and other receivables 17 135,933 9,885
Cash and cash equivalents 18 2,585 2,304
Total current assets 138,518 12,189
Total assets 18,421,517 479,117
LIABILITIES
Current Liabilities
Trade and other payables 19 (18,198,248) (107,162)
Loans from related parties 24 (487,745) (383,254)
Borrowings 20 (1,922) -
Total current liabilities (18,687,915) (490,416)
Non-current liabilities
Borrowings 20 (26,793) -
Total liabilities (18,714,708) (490,416)
Net liabilities (293,191) (11,299)
EQUITY
Share capital - Ordinary shares 22 147,913 145,770
Share capital - Deferred shares 22 131,193 -
Share premium 22 8,661,623 736,782
Merger reserve 22 3,108,987 (882,552)
Reverse acquisition reserve 5 (2,320,231) -
Share options reserve 21 25,153 -
Translation reserve (99,617) (2,220)
Retained earnings (9,932,041) 1,457
Capital and reserves attributable to owners of NEO Energy Metals PLC (277,020) (763)
Non-controlling interests (16,171) (10,536)
Total Equity (293,191) (11,299)
The financial statements were approved by the Board and authorised for issue
on 1 December 2025 and signed on its behalf by:
Jason Brewer
Director
Company Registration No. 09837001
The notes on pages 71 to 109 form part of these financial statements.
PARENT COMPANY STATEMENT OF FINANCIAL POSITION
30 September 2024 30 September 2023
Note £ £
ASSETS
Non-Current Assets
Investment in subsidiaries 15 3,139,467 -
Trade and other receivables 17 1,185,233 -
Total non-current assets 4,324,700 -
Current Assets
Trade and other receivables 17 127,455 489,618
Cash and cash equivalents 18 1,080 77
Total current assets 128,535 489,695
Total assets 4,453,235 489,695
LIABILITIES
Current Liabilities
Trade and other payables 19 (481,265) (1,471,353)
Loans from related parties 19/24 (374,406) (212,201)
Borrowings 20 (1,922) (2,217,327)
Total Current Liabilities (857,593) (3,900,881)
Non-current liabilities
Borrowings 20 (26,793) (24,540)
Total Liabilities (884,386) (3,925,421)
Net Assets/(liabilities) 3,568,849 (3,435,726)
EQUITY
Share capital - Ordinary shares 22 147,913 145,770
Share capital - Deferred shares 22 131,193 -
Share premium 22 8,661,623 736,782
Merger reserve 3,108,987 -
Options reserve 25,153 -
Retained earnings (8,506,020) (4,318,278)
Total Equity 3,568,849 (3,435,726)
The Company has taken advantage of the exemption under section 408 of the
Companies Act 2006 by choosing not to present its individual Statement of
Comprehensive Income.
The Parent Company's loss for the period from continuing operations was
£1,619,407 (2023: £899,628).
The financial statements were approved by the Board and authorised for issue
on 1 December 2025 and signed on its behalf by:
Jason Brewer
Director
The notes on pages 71 to 109 form part of these financial statements.
CONSOLIDATED STATEMENT OF CASH FLOWS
Year ended 30 September 2024 18 months ended 30 September 2023 Unaudited
£ £
Cash flows from operating activities
Operating (loss)/profit - continuing operations (6,825,970) 2,345
Adjustments for:
Write down of bonds (1,308,036) -
Gain on cancellation of CLNs on issuance (19,506) -
Interest income (959) -
Finance costs 748 -
Share-based payments 5,550,637 -
Operating cash (outflows)/ inflows before working capital movements (2,603,086) 2,345
Increase in trade and other receivables (126,048) (93,559)
(Decrease)/increase in trade and other payables (1,339,857) 93,518
Net cash (outflows)/inflows from operating activities (1,465,905) (41)
Net cash flows from investing activities
Interest Income 959 -
Net cash inflows from investing activities 959 -
Net cash flows from financing activities
Proceeds from issue of share capital 3,688,243 -
Repayment of borrowings (4,873) -
Finance costs (748) -
Loans from related parties 483,088 -
Net cash inflows from financing activities 4,165,710 -
Net increase in cash and cash equivalents 97,678 2,304
Cash and cash equivalents at the beginning of the period 2,304 -
Exchange differences on cash and cash equivalents
(97,397) -
Cash and cash equivalents at the end of the period 2,585 2,304
The notes on pages 71 to 109 form part of these financial statements.
PARENT COMPANY STATEMENT OF CASH FLOWS
Year ended 30 September 2024 18 months ended 30 September 2023
£ £
Cash flows from operating activities
Operating loss (1,619,407) (899,628)
Adjustments for:
Write down of bonds (1,308,036) -
Share-based payments 25,153 -
Gain on cancellation of CLNs on issuance (19,506) -
Interest income (959) -
Finance costs 198 (32,855)
Operating cash outflows before working capital movements (2,922,557) (932,483)
Increase in trade and other receivables (823,070) 11,229
(Decrease)/increase in trade and other payables (311,909) 941,387
Net cash (outflows)/inflows from operating activities (1,134,979) 952,616
Net cash flows from investing activities
Interest income 959 -
Net cash inflows from investing activities 959 -
Net cash flows from financing activities
Repayments of borrowings (4,873) (13,911)
Finance costs (198) 32,855
Proceeds from issue of share capital 3,688,243 -
Loans from related parties/(repayment of loans) 374,408 (39,000)
Net cash inflows from financing activities 4,057,580 (20,056)
Net increase in cash and cash equivalents 1,003 77
Cash and cash equivalents at the beginning of the period 77 -
Cash and cash equivalents at the end of the period 1,080 77
The notes on pages 71 to 109 form part of these financial statements.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Share capital Ordinary shares Share capital Deferred shares Share premium Merger reserve RTO reserve Share options reserve Translation reserve Retained earnings Total Non controlling interest
£ £ £ £ £ £ £ £ £ £ £
Balance at 31 March 2022 - - - - - - (2,220) (888) (3,108) (10,536) (13,644)
Loss for the period - - - - - - - 2,345 2,345 - 2,345
Other comprehensive income - - - - - - - - - - -
Total comprehensive income for the period - - - - - - - 2,345 2,345 - 2,345
Recognition of PLC Equity 145,770 - 736,782 (882,552) - - - - - - -
Balance at 30 September 2023 (Unaudited) 145,770 - 736,782 (882,552) - - (2,220) 1,457 (763) (10,536) (11,299)
Loss for period - - - - - - - (6,816,159) (6,816,159) (9,811) (6,825,970)
FX movement - - - - - - (97,397) - (97,397) - (97,397)
Other comprehensive income - - - - - - - - - - -
Total comprehensive income for the period - - - - - - (97,397) (6,816,159) (6,913,556) (9,811) (6,923,367)
Redesignation from ordinary to deferred shares (131,193) 131,193 - - - - - - - - -
Recognition of plc equity at acquisition date - - - 882,552 (4,731,400) - - - (3,848,848) - (3,848,848)
Issue of shares for acquisition of subsidiary 30,480 - - 3,108,987 (3,139,467) - - - - - -
Issue of shares for placings 34,094 - 1,624,210 - - - - - 1,658,304 - 1,658,304
Issue of shares to settle debt 21,216 - 1,454,010 - - - - - 1,475,226 - 1,475,226
Issue of shares in lieu of fees 20,810 - 2,580,440 - - - - - 2,601,250 - 2,601,250
Issue of placing shares December 2023 14,000 - 1,036,000 - - - - - 1,050,000 - 1,050,000
Issue of placing shares December 2023 3,880 - 481,120 - - - - - 485,000 - 485,000
Issue of shares April 2024 918 - 67,942 - - - - - 68,860 - 68,860
Issue of placing shares June 2024 3,380 - 250,120 - - - - - 253,500 - 253,500
Issue of placing shares June 2024 86 - 6,413 - - - - - 6,499 - 6,499
Issue of shares August 2024 2,000 - 148,000 - - - - - 150,000 - 150,000
Issue of shares August 2024 588 - 43,529 - - - - - 44,117 - 44,117
Issue of placing shares 884 - 233,057 - - - - - 234,941 - 234,941
September 2024
Cost of shares issued - - - - - - - (2,568,335) (2,568,335) - (2,568,335)
Share based payments - 5,550,636 25,153 - - 5,575,789 - 5,575,789
Issue of warrants - - - - - - -
Decrease in equity holding of subsidiary - - - - - - - (549,004) (549,004) 4,176 (544,828)
Balance at 30 September 2024 147,913 131,193 8,661,623 3,108,987 (2,320,231) 25,153 (99,617) (9,932,041) (277,020) (16,171) (293,191)
The notes on pages 71 to 109 form part of these financial statements.
PARENT COMPANY STATEMENT OF CHANGES IN EQUITY
Share capital Ordinary shares Share capital Deferred shares Share premium reserve Merger reserve Share options reserve Retained earnings Total
£ £ £ £ £ £ £
Balance at 31 March 2022 145,770 - 736,782 - - (3,418,650) (2,536,098)
Loss for the period - - - - - (899,628) (899,628)
Total comprehensive income for the period - - - - - (899,628) (899,628)
Balance at 30 September 2023 145,770 - 736,782 - - (4,318,278) (3,435,726)
Loss for period - - - - - (1,619,407) (1,619,407)
Total comprehensive income for the period - - - - - (1,619,407) (1,619,407)
Redesignation from ordinary to deferred shares (131,193) 131,193 - - - - -
Issue of shares for acquisition of subsidiary 30,480 - - 3,108,987 - - 3,139,467
Issue of shares for placings 34,094 - 1,624,210 - - - 1,658,304
Issue of shares to settle debt 21,216 - 1,454,010 - - - 1,475,226
Issue of shares in lieu of fees 20,810 - 2,580,440 - - - 2,601,250
Issue of placing shares December 2023 14,000 - 1,036,000 - - - 1,050,000
Issue of placing shares December 2023 3,880 - 481,120 - - - 485,000
Issue of shares April 2024 918 - 67,942 - - - 68,860
Issue of placing shares June 2024 3,380 - 250,120 - - - 253,500
Issue of placing shares June 2024 86 - 6,413 - - - 6,499
Issue of shares August 2024 2,000 - 148,000 - - - 150,000
Issue of shares August 2024 588 - 43,529 - - - 44,117
Issue of placing shares September 2024 1,884 - 233,057 - - - 234,941
Share based payments - - - - 25,153 - 25,153
Cost of shares issued - - - - - (2,568,335) (2,568,335)
Balance at 30 September 2024 147,913 131,193 8,661,623 3,108,987 25,153 (8,506,020) 3,568,849
The notes on pages 71 to 109 form part of these financial statements.
NOTES TO THE FINANCIAL STATEMENTS
1. General information
Neo Energy Metals PLC (formally Stranger Holdings PLC) ('the Company')
following the RTO is now a Uranium / Yellowcake mining and exploration company
incorporated in the United Kingdom.
The Company is limited by shares and was incorporated and registered in
England and Wales on 22 October 2015 as a private limited company and
re-registered as a public limited company on 14 November 2016.
2 Accounting policies
2.1 Basis of Accounting
These financial statements of Neo Energy Metals PLC (formally Stranger
Holdings PLC) have been prepared in accordance with UK adopted International
Accounting Standards and in accordance with the Companies Act 2006. The
financial statements have been prepared under the historical cost convention.
The principal accounting policies adopted are set out below. These policies
have been consistently applied.
The preparation of financial statements in conformity with UK adopted
International Accounting Standards requires the use of certain critical
accounting estimates. It also requires management to exercise its judgement in
the process of applying the Company's accounting policies. The areas involving
a higher degree of judgment or complexity, or areas where assumptions and
estimates are significant to the consolidated financial statements are
disclosed in Note 3. The preparation of financial statements in conformity
with IFRSs requires management to make judgments, estimates and assumptions
that affect the application of accounting policies and reported amounts of
assets, liabilities, income and expenses. Although these estimates are based
on management's experience and knowledge of current events and actions, actual
results may ultimately differ from these estimates.
The estimates and underlying assumptions are reviewed on an on-going basis.
Revisions to accounting estimates are recognised in the period in which the
estimates are revised if the revision affects only that period or in the
period of the revision and future periods if the revision affects both current
and future periods.
The consolidated financial statements are presented in GBP, which is the
functional currency of the Group, and all values are rounded to the nearest
£1, except when otherwise indicated.
a) Going concern
The consolidated financial statements have been prepared on a going concern
basis. The Group's assets are not currently generating revenues and therefore
the Group has incurred an operating loss of £8,134,217 (2023: £2,042 profit)
in the period. The Group has net liabilities of £293,191 (2023: £11,299)
at 30 September 2024. The Directors have prepared a profit and cashflow
forecast for the period ending 31 December 2026 which shows that an operating
loss is forecast in the 12 months subsequent to the date of these financial
statements, and that the Company and Group are unable to pay their liabilities
in full without additional funding, The Group therefore will need to raise
funding to provide additional working capital within the next 12 months to
meet its liabilities as they fall due.
The ability of the Group to meet its projected expenditure is dependent on
these further equity injections and / or the raising of cash through bank
loans or other debt instruments. The Directors acknowledge the disclaimer of
opinion in respect of going concern, included in the audit report, but the
Directors remain confident of raising finance and therefore, the Directors
consider it appropriate to prepare the consolidated financial statements on a
going concern basis.
The consolidated financial statements do not include the adjustments that
would result if the Group were unable to continue as a going concern.
b) Reverse acquisition
The accounting treatment of the reverse acquisition (see note 5), the
comparatives for the 18 months ended 30 September 2023, as well as the
Statement of Financial Position as at 30 September 2023, represent those of
Neo Uranium Resources South Africa (Pty) Ltd ("NURSA"). The share capital and
share premium balances are those of Neo Energy Metals PLC. The results for the
year ended 30 September 2024, as well as the Statement of Financial Position
as at 30 September 2024, represent those of NURSA for the whole period and
those of Neo Energy Metals PLC from 9 November 2023 to 30 September 2024.
Whilst reverse acquisition accounting is a departure from the standard
consolidation practice under the Companies Act 2006 (the "Act") of the legal
parent consolidating the legal subsidiary, its adoption is necessary for the
financial statements to present a true and fair view as required by the Act.
c) New standards, amendments to standards and interpretations
There were no new standards or interpretations impacting the Company and Group
that have been adopted in the annual financial statements for the year ended
30 September 2024, and which have given rise to changes in the Company's and
Group's accounting policies.
2.2 Basis of consolidation/Business Combination
Subsidiaries are all entities (including structured entities) over which the
Group has control. The Group controls an entity when the Group is exposed to,
or has rights to, variable returns from its involvement with the entity and
has the ability to affect those returns through its power over the entity.
Subsidiaries are fully consolidated from the date on which control is
transferred to the Group. They are deconsolidated from the date that control
ceases.
The Group applies IFRS 3, the acquisition method to account for business
combinations. The consideration transferred for the acquisition of a
subsidiary is the fair values of the assets transferred, the liabilities
incurred to the former owners of the acquiree and the equity interests issued
by the group. The consideration transferred includes the fair value of any
asset or liability resulting from a contingent consideration arrangement.
Identifiable assets acquired and liabilities and contingent liabilities
assumed in a business combination are measured initially at their fair values
at the acquisition date. The Group recognises any non-controlling interest in
the acquiree on an acquisition-by-acquisition basis, either at fair value or
at the non-controlling interest's proportionate share of the recognised
amounts of acquiree's identifiable net assets.
Acquisition-related costs are expensed as incurred in the consolidated
financial statements and are accounted for as part of the cost of investment
in the parent company financial statements.
Any contingent consideration to be transferred by the Group is recognised at
fair value at the acquisition date. Subsequent changes to the fair value of
the contingent consideration that is deemed to be an asset or liability is
recognised either in profit or loss or as a change to other comprehensive
income. Contingent consideration that is classified as equity is not
re-measured, and its subsequent settlement is accounted for within equity.
Asset Acquisitions
Acquisitions of mineral exploration licences through the acquisition of
non-operational corporate structures that do not represent a business and
therefore do not meet the definition of a business combination, are accounted
for as the acquisition of an asset.
The consideration for the asset is allocated to the assets based on their
relative fair values at the date of acquisition.
Inter-company transactions, balances and unrealised gains on transactions
between group companies are eliminated. Unrealised losses are also eliminated.
2.3 Financial assets and liabilities
The Company classifies its financial assets at fair value through profit or
loss or as loans and receivables and classifies its financial liabilities and
other financial liabilities at amortised cost. Management determines the
classification of its investments at initial recognition, A financial asset or
liability is measured initially at fair value. At inception transaction costs
that are directly attributable to the acquisition or issue, for an item not at
fair value through profit or loss, is added to the fair value of the financial
asset and deducted from the fair value of the financial liabilities.
Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or
determined payments that are not quoted on an active market. They arise when
the Company and Group provides money, goods or services directly to a debtor
with no intention of trading the receivable. Loans are recognised when funds
are advanced to the recipient. Loans and receivables are carried at amortised
cost using the effective interest method (see below).
Other financial liabilities
Other financial liabilities are non-derivative financial liabilities with
fixed or determined payments.
Other financial liabilities are recognised when cash is received from a
depositor. Other financial liabilities are carried at amortised cost using the
effective interest method. The fair value of the other liabilities repayable
on demand is assumed to be the amount payable on demand at the reporting date.
Derecognition
Financial assets are derecognised when the rights to receive cash flows from
the financial assets have expired or where the Group has transferred
substantially all the risks and rewards of ownership. In transactions in which
the Group neither retains nor transfers substantially all the risks and
rewards of ownership of a financial asset and retains control over the asset,
the Group continues to recognise the asset to the extent of its continuing
involvement, determined by the extent to which it is exposed to changes in the
value of the transferred asset. There have not been any instances where assets
have only been partly derecognised. The Group derecognises a financial
liability when its contractual obligations are discharged, cancelled or
expired.
Amortised cost measurement
The amortised cost of a financial asset or financial liability is the amount
at which the financial asset or liability is measured at initial recognition,
minus principal payments, plus or minus the cumulative amortisation using the
effective interest method of any differences between the initial amount
recognised and maturity amount, minus any reduction to impairment.
Fair value measurement
Fair value is the amount for which an asset could be exchanged, or a liability
settled, between knowledgeable, willing parties in an arm's length transaction
on the measurement date. The fair value of assets and liabilities in active
markets are based on current bid and offer prices respectively. If the market
is not active the Company establishes fair value by using other financial
liabilities appropriate valuation techniques. These include the use of recent
arm's length transactions, reference to other instruments that are
substantially the same for which market observable prices exist, net of
present value and discounted cash flow analysis.
2.4 Cash and cash equivalents
Cash and cash equivalents comprise cash at bank and in hand, and other
short-term highly liquid investments with original maturities of three months
or less.
2.5 Borrowings
Borrowings are recognised initially at fair value, net of transactions costs
incurred.
Borrowings are subsequently carried at amortised cost: any difference between
the proceeds (net of transaction costs) and the redemption value is recognised
in the income statement over the period of the borrowings using the effective
interest method.
Fees paid on the establishment of the loan facilities are recognised as
transaction costs of the loan to the extent that it is probable that some or
all of the facility will be drawn down. In this case, the fee is deferred
until the draw down occurs. To the extent there is no evidence that it is
probable that some or all of the facility will be drawn down, the fee is
capitalised as a pre-payment for liquidity services and amortised over the
period of the facility to which it relates.
Borrowing costs
All other borrowing costs are recognised in the profit or loss in the period
in which they are incurred.
2.6 Equity instruments
An equity instrument is any contract that evidences a residual interest in the
assets of a Company after deducting all of its liabilities. Equity instruments
issued are recorded at the proceeds received net of direct issue costs.
The share premium account represents premiums received on the initial issuing
of the share capital. Any transaction costs associated with the issuing of
shares are deducted from share premium, net of any related income tax
benefits. Any bonus issues are also deducted from share premium.
The reverse acquisition reserve was recognised during the formation of the
Group when the legal acquiree was considered to be the accounting acquirer. As
the accounting acquiree was not a business under IFRS 3, a part of the
transaction was outside the scope of IFRS 3. This resulted in the recognition
of a 'reverse acquisition reserve' on consolidation and is set out in more
detail in note 5.
The translation reserve policy is set out below in 2.8.
Retained earnings include all current and prior period results as disclosed in
the Statement of Comprehensive Income, less dividends paid to the owners of
the Company.
2.7 Taxation
Income tax expense represents the sum of the tax currently payable and
deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable
profit differs from net profit as reported in the statement of comprehensive
income because it excludes items of income and expense that are taxable or
deductible in other years, and it further excludes items that are never
taxable or deductible. The Company's liability for current tax is calculated
using tax rates that have been enacted or substantively enacted by the end of
the reporting period.
Deferred tax is recognised on temporary differences between the carrying
amount of assets and liabilities in the consolidated financial statements and
the corresponding tax bases used in the computation of taxable profit.
Deferred tax liabilities are generally recognised for all taxable temporary
differences.
Deferred tax assets are generally recognised for all deductible temporary
differences to the extent that it is probable that taxable profits will be
available against which those deductible temporary differences can be
utilised. Such deferred tax assets and liabilities are not recognised if the
temporary differences arise from goodwill or from the initial recognition
(other than in a business combination) of other assets and liabilities in a
transaction that affects neither the taxable profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at the end of each
reporting period and reduced to the extent that it is no longer probable that
sufficient taxable profits will be available to allow all or part of the asset
to be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are
expected to apply in the period in which the liability is settled or the asset
realised. The measurement of deferred tax assets and liabilities reflects the
tax consequences that would follow from the manner in which the Company
expects, at the end of the reporting period, to recover or settle the carrying
amount of its assets and liabilities.
Current or deferred tax for the year is recognised in profit or loss, except
when it relates to items that are recognised in other comprehensive income or
directly in equity, in which case the current and deferred tax is also
recognised in other comprehensive income or directly in equity respectively.
Where current tax or deferred tax arises from the initial accounting for a
business combination, the tax effect is included in the accounting for the
business combination.
On 23 May 2023, the International Accounting Standards Board (the "Board")
issued International Tax Reform - Pillar Two Model Rules - Amendments to IAS
12 which clarify that IAS 12 applies to income taxes arising from tax law
enacted or substantively enacted to implement the Pillar Two model rules
published by the OECD, including tax law that implements Qualified Domestic
Minimum Top-up Taxes. The Group has adopted these amendments. However, they
are not yet applicable for the current reporting year as the Group's
consolidated revenue is currently below the threshold of €750 million.
2.8 Foreign currency translation
In preparing the financial statements of the Group entities, transactions in
currencies other than the entity's functional currency (foreign currencies)
are recognised at the rates of exchange prevailing on the dates of the
transactions. At each reporting date, monetary assets and liabilities that are
denominated in foreign currencies are retranslated at the rates prevailing at
that date. Non-monetary items carried at fair value that are denominated in
foreign currencies are translated at the rates prevailing at the date when the
fair value was determined. Non-monetary items that are measured in terms of
historical cost in a foreign currency are not retranslated.
Exchange differences are recognised in profit or loss in the period in which
they arise except for:
• exchange differences on foreign currency borrowings relating to
assets under construction for future productive use, which are included in the
cost of those assets when they are regarded as an adjustment to interest costs
on those foreign currency borrowings;
• exchange differences on transactions entered into to hedge certain
foreign currency risks (see below under financial instruments/hedge
accounting); and
• exchange differences on monetary items receivable from or payable to
a foreign operation for which settlement is neither planned nor likely to
occur in the foreseeable future (therefore forming part of the net investment
in the foreign operation), which are recognised initially in other
comprehensive income and reclassified from equity to profit or loss on
disposal or partial disposal of the net investment.
For the purpose of presenting consolidated financial statements, the assets
and liabilities of the Group's foreign operations are translated at exchange
rates prevailing on the reporting date. Income and expense items are
translated at the average exchange rates for the period, unless exchange rates
fluctuate significantly during that period, in which case the exchange rates
at the date of transactions are used. Exchange differences arising, if any,
are recognised in other comprehensive income and accumulated in a foreign
exchange translation reserve (attributed to non-controlling interests as
appropriate).
2.9 Share-based payments
The Group issued warrants in the period which were accounted for as equity
settled share based payment transactions with employees. The fair value of the
employees services received in exchange for these warrants is recognised as an
expense in the profit and loss account with a corresponding increase in equity
in the Share-based payment reserve. As there are no vesting conditions for
these warrants the expense was recognised immediately and will not be
subsequently revisited. Fair value is determined using Black-Scholes option
pricing models.
The Group has also adopted an incentive plan to issue its management
Performance Shares based on non-market based performance conditions. These are
valued by management using the fair value of the equity instrument expected to
be received and a judgement of the likelihood for these conditions to be met.
At the end of each reporting period, the Group revises its estimate of the
number of shares that are expected to be awarded.
Where equity instruments are granted to persons other than employees, the
statement of comprehensive income is charged with the fair value of the goods
and services received.
2.10 Intangible assets
Exploration and evaluation assets
Intangible assets represent exploration and evaluation assets (IFRS 6 assets),
being the cost of acquisition by the Group of rights, licences and know-how.
Such expenditure requires the immediate write-off of exploration and
development expenditure that the Directors do not consider to be supported by
the existence of commercial reserves.
All costs associated with mineral exploration and investments, are capitalised
on a project-by-project basis, pending determination of the feasibility of the
project. Costs incurred include appropriate technical and administrative
expenses but not general overheads and these assets are not amortised until
technical feasibility and commercial viability is established. If an
exploration project is successful, the related expenditures will be
transferred to "mining assets" and amortised over the estimated life of the
commercial ore reserves on a unit of production basis. Where a licence is
relinquished or a project abandoned, the related costs are written off.
The recoverability of all exploration and development costs is dependent upon
the discovery of economically recoverable reserves, the ability of the Group
to obtain necessary financing to complete the development of reserves and
future profitable production or proceeds from the disposition thereof.
Exploration and evaluation assets shall no longer be classified as such when
the technical feasibility and commercial viability of extracting mineral
resources are demonstrable. When relevant, such assets shall be assessed for
impairment, and any impairment loss recognised, before reclassification to
"Mine development".
2.11 Investments
Investment in subsidiaries are measured at cost less impairment.
2.12 Other income (including bond and loan settlements)
Other income comprises items that are not derived from the Group's principal
revenue-generating activities. It includes incidental income streams such as
investment income, foreign exchange gains, and gains arising from financing
settlements.
Gains or losses arising from the settlement, extinguishment, or derecognition
of the Group's own bond or loan facilities are recognised in accordance with
IFRS 9 Financial Instruments. When a bond or loan liability is settled,
cancelled, or legally released, the difference between the carrying amount of
the liability and the consideration paid is recognised immediately in profit
or loss. Such gains are presented within "Other income" in the consolidated
statement of profit or loss, unless material enough to warrant separate
presentation.
2.13 Convertible loan notes
The component parts of convertible loan notes issued by the Group are
classified separately as financial liabilities and equity in accordance with
the substance of the contractual arrangements. A conversion option that will
be settled by the exchange of a fixed amount of cash or another financial
assets for a fixed number of the Company's own equity instruments is an equity
instrument.
At the date of issue, the fair value of the liability component is estimated
using the prevailing market interest rate for a similar non-convertible
instrument. This amount is recorded as a liability on an amortised cost basis
using the effective interest method until extinguished upon conversion or at
the instrument's maturity date.
The conversion option classified as equity is determined by deducting the
amount of the liability component from the fair value of the compound
instrument as a whole. This is recognised and included in equity, net of
income tax effects, and is not subsequently remeasured. In addition, the
conversion option classified as equity will remain in equity until the
conversion option is exercised, in which case, the balance recognised in
equity will be transferred to the convertible loan note reserve. Where the
conversion option remains unexercised at the maturity date of the convertible
loan note, the balance recognised in equity will be transferred to retained
earnings. No gain or loss is recognised in profit or loss upon conversion or
expiration of the conversion option.
Transaction costs that relate to the issue of the convertible loan notes are
allocated to the liability and equity components in proportion to the
allocation of the gross proceeds. Transaction costs relating to the equity
component are recognised directly in equity. Transaction costs relating to the
liability component are included in the carrying amount of the liability
component and are amortised over the lives of the convertible loan notes using
the effective interest method.
2.14 Net financing costs
Net financing costs comprise interest payable on borrowings calculated using
the effective interest rate method, interest receivable funds invested,
foreign exchange gains and losses, and gains and losses on hedging instruments
that are recognised in the income statement.
Interest income is recognised in the income statement as it accrues, using the
effective interest method. The interest expense component of finance lease
payment is recognised in the income statement using the effective interest
rate method.
2.15 Segmental reporting
Operating segments are reported in a manner consistent with the internal
reporting provided to the chief operating decision makers. The Chief Operating
Decision Maker ("CODM"), who are responsible for allocating resources and
assessing performance of the operating segments, has been identified as the
executive Board of Directors. The Directors are of the opinion that the
business of the Group is currently focused on two reportable geographical
segments being the UK and South Africa.
2.16 Exceptional items
Exceptional items are those that, in the judgement of the Directors, are
material and non-recurring in nature, and are therefore disclosed separately
within the consolidated statement of profit or loss to provide a clearer
understanding of the Group's underlying performance.
Exceptional items may include significant restructuring costs,
acquisition-related expenses, impairment charges, or gains and losses arising
from major transactions that are not expected to recur in the normal course of
business.
Reverse Acquisition Expense
During the year, the Group completed a reverse acquisition of Neo Uranium
Resources South Africa (Pty) Ltd.
Under IFRS 3 paragraph B20-B27, the accounting acquirer recognises a listing
expense (reverse acquisition expense) representing the difference between:
· the fair value of the shares the legal subsidiary would have had
to issue to acquire the listed entity, and
· the fair value of the identifiable net assets of the listed
entity.
This non-cash expense does not represent a genuine outflow of resources but
arises from the accounting presentation required under IFRS 3.
Accordingly, the reverse acquisition expense of £6,115,898 has been presented
as an exceptional item within the consolidated statement of comprehensive
income.
3 Critical accounting estimates and judgments
The key assumptions concerning the future, and other key sources of estimation
uncertainty at the reporting period that may have a significant risk of
causing a material adjustment to the carrying amounts of assets and
liabilities within the next financial year, are discussed below.
Accounting treatment of the RTO
Significant judgement is required when considering the accounting treatment of
the RTO. The Directors have to consider key factors including determining the
accounting acquirer and acquiree are and determining the fair value of the
assets and liabilities being acquired in connection with the reverse takeover.
Accounting for acquisitions and fair value
Acquisitions are accounted for at fair value. The assessment of fair value is
subjective and depends on a number of assumptions. These assumptions may
include assessment of estimated resources, cost of bringing these resources to
commercial production levels, discount rates, and the amount and timing of
expected future cash flows from assets and liabilities. In addition, the
selection of specific valuation methods for individual assets and liabilities
requires judgment.
The specific valuation methods applied will be driven by the nature of the
asset or liability being assessed. The consideration given to a seller for the
purchase of a business or a company is accounted for at its fair value. When
the consideration given includes elements that are not cash, such as shares or
options to acquire shares, the fair value of the consideration given is
calculated by reference to the specific nature of the consideration given to
the seller.
Impairment of investments and loans to subsidiaries
The Group and Company assess at each reporting date whether there is any
objective evidence that investments of £3,139,467 and loans to subsidiaries
of £1,185,233 are impaired. To determine whether there is objective
evidence of impairment, a considerable amount of estimation is required in
assessing the ultimate realisation of these investments of £3,139,467 and
non-current receivables of £1,185,233, including valuation, creditworthiness
and future cashflows. As at the year end the Directors do not assess there to
be any impairment of these amounts.
Share-based payments
The Group issues shares and warrants to its employees, directors, investors
and suppliers. These are valued in accordance with IFRS 2 "Share-based
payments" resulting in a charge of £25,153 (2023: £nil). In calculating
the related charge on issuing shares and warrants the Group uses a variety of
estimates and judgements in respect of inputs used including share price
volatility, risk free rate, and expected life. Changes to these inputs may
impact the related charge.
Valuation of deferred consideration payable
The Group has recorded a contingent consideration liability of £0.45m as at
30 September 2024 relating to the reverse acquisition of Neo Uranium Resources
South Africa (Pty) Ltd. An estimate must be made when determining the value of
contingent consideration to be recognised at each balance sheet date. Changes
in assumptions could cause an increase, or reduction, in the amount of
contingent consideration payable, with a resulting charge or credit in the
consolidated income statement.
Recoverable value of intangible assets
The Group has intangible assets with a carrying value of £18,282,999 (2023:
£466,928) at 30 September 2024. Costs capitalised in respect of the Group's
mining assets are required to be assessed for impairment in accordance with
IFRS 6. Such an estimate requires the Group to exercise judgement in respect
of the indicators of impairment and also in respect of inputs used in the
models which are used to support the carrying value of the assets. Such inputs
include estimates of uranium and gold reserves, production profiles, uranium
and gold price, capital expenditure, inflation rates, and pre-tax discount
rates that reflect current market assessments of (a) the time value of money;
and (b) the risks specific to the asset for which the future cash flow
estimates have not been adjusted. The Directors concluded that there was no
impairment as at 30 September 2024.
4 Financial risk management
The Group's activities may expose it to some financial risks. The Group's
overall risk management programme focuses on the unpredictability of financial
markets and seeks to minimise potential adverse effects on the Group's
financial performance.
a) Liquidity risk
Liquidity risk arises from the possibility that the Group and its subsidiaries
might encounter difficulty in settling its debts or otherwise meeting its
obligations related to financial liabilities. In addition to equity funding,
additional borrowings have been secured to finance operations. The Group
manages this risk by monitoring its financial resources and carefully plans
its expenditure programmes. Financial liabilities of the Group comprise trade
payables which mature in less than six months, convertible loan notes as
referenced in note 20 and deferred consideration that is payable in shares.
b) Capital risk
The Group's objective when managing capital is to safeguard the entity's
ability to continue as a going concern and develop its uranium and gold
exploration, development and production activities to provide returns for
shareholders and benefits for other stakeholders.
The Group's capital structure comprises all the components of equity (all
share capital, share premium, retained earnings when earned and other
reserves). When considering the future capital requirements of the Group and
the potential to fund specific project development via debt, the Directors
consider the risk characteristics of the underlying assets in assessing the
optimal capital structure.
c) Credit risk
Credit risk is the risk that the Group will suffer a financial loss as a
result of another party failing to discharge an obligation and arises from
cash and other liquid investments deposited with banks and financial
institutions. The Group considers the credit ratings of banks and
institutions in which it holds funds to reduce exposure to credit risk. The
Group considers that it is not exposed to major concentrations of credit risk.
The currency profile of the Group's cash and cash equivalents is as follows:
30 September 2024 30 September
2023
Unaudited
Cash and cash equivalents £ £
Sterling 1,080 -
South African Rand 1,505 2,304
2,585 2,304
On the assumption that all other variables were held constant, and in respect
of the Group's cash position, the potential impact of a 20% increase in the
Pound Sterling will be negligible.
The banks where these balances are held, and their respective credit rating is
outlined below.
Bank Fitch Moody's S&P
Absa AA+ - B Not available zaAAA
Standard Bank B - BB- Ba2 Not available
Fair value hierarchy
All the financial assets and financial liabilities recognised in the financial
statements which are short-term in nature are shown at the carrying value
which also approximates the fair values of those financial instruments.
Therefore, no separate disclosure for fair value hierarchy is required.
d) Market risk
Market risk arises from the Group's use of interest bearing and foreign
currency financial instruments. It is the risk that future cash flows of a
financial instrument will fluctuate because of changes in interest rates
(interest rate risk), and foreign exchange rates (currency risk).
e) Price risk
Price risk arises from the exposure to equity securities arising from
investments held by the Group. No traded equity investments are held by the
Group and therefore no risk has been identified. The Group is also exposed to
price risk relating to the underlying commodity prices of gold and uranium,
but given that the Group is not in production there is no impact on the
results of the Group.
f) Foreign exchange risk
The Group operates internationally and is exposed to foreign exchange risk
arising from various currency exposures, primarily with respect to Pound
Sterling, US Dollar and South African Rand. Foreign exchange risk arises from
recognised monetary assets and liabilities, where they may be denominated in a
currency that is not the Group's functional currency.
g) Categories of financial instruments
In terms of financial instruments, these solely comprise of those measured at
amortised costs and are as follows:
Group Company
30 September 2024 30 September 2023 30 September 2024 30 September 2023
£ £ £ £
Trade and other payables 18,111,646 107,162 394,663 1,471,353
Financial liabilities 18,111,646 107,162 394,663 1,471,353
Cash and cash equivalents 2,585 2,304 1,080 77
Trade and other receivables 135,933 9,885 127,455 489,618
Financial assets 138,518 12,189 128,535 489,695
5 Reverse Acquisition
On 9 November 2023, the Company (then "Stranger Holdings PLC") completed a
reverse takeover ("RTO") of Neo Uranium Resources South Africa (Pty) Ltd
("NURSA"), a private South African uranium exploration company holding the
Henkries Uranium Project and Beisa Project through local subsidiaries.
In accordance with IFRS 3 'Business Combinations', IFRS 10 'Consolidated
Financial Statements' and IFRS 2 'Share based Payments, the transaction has
been accounted for as a reverse acquisition. The shareholders of NURSA became
the controlling shareholders of the legal parent, Neo Energy Metals PLC ("the
Company"), by virtue of holding a majority of the voting rights following
completion. The legal parent (Neo Energy Metals PLC, formerly Stranger
Holdings PLC) did not meet the definition of a business under IFRS 3 and
therefore the transaction falls outside the scope of IFRS 3. Accordingly, no
goodwill has been recognised and the difference between the fair value of the
equity instruments deemed to have been issued by NURSA and the fair value of
the identifiable net assets of Neo Energy Metals PLC has been charged to the
Statement of Comprehensive Income as a reverse acquisition expense of
£6,115,898, representing in substance the cost of obtaining a London Stock
Exchange listing.
Share issues and consideration:
Date Description No. of Ordinary Shares Issued Issue Price (pence) Consideration / Purpose
9 November 2023 Consideration Shares - issued to NURSA shareholders on completion of RTO 304,802,666 1.03 Equity for acquisition of NURSA (Pty) Ltd
9 November 2023 Placing and Subscription (First Round) 761,198,802 0.75 - 1.25 Gross fund-raise £4.9 million
December 2023 - September 2024 Further Placings & Settlements 267,361,504 0.75 - 1.25 To settle loans, fees and working capital
Various 2024 - 2025 Shares in lieu of fees (Directors & Advisers) 70,306,668 0.75 Non-cash settlement of fees
2025 Milestone Tranches Performance and Deferred Consideration Shares 381,466,667 0.75 Linked to resource and licence milestones
Acquisitions completed and pending
Henkries Uranium Project - 100% interest acquired via Desert Star Trading 130
(Pty) Ltd from Desert Star Proprietary Limited. The final sale and purchase
agreement was signed on 29 March 2022 (see RTO Prospectus, Part I §3).
Consideration was satisfied through issue of equity and contingent deferred
consideration.
Beisa Uranium Project - acquisition of prospecting rights from Sunshine
Mineral Resources (Pty) Ltd. The purchase price was ZAR 402.5 million (£17.6
million), with an initial deposit of ZAR 2.5 million (£110,822) paid in the
year, with the balance payable as 50% cash and 50% shares upon Section 11
registration at the the Department of Mineral Resources and Energy in South
Africa.
Deferred consideration and performance milestones
Up to 100 million Deferred Consideration Shares may be issued on achievement
of specific milestones: (1) Updated JORC resource > 10 million tonnes
U₃O₈ @ ≥399 ppm (50% trigger); (2) Grant of a mining right on the
Henkries Project (50% trigger); (3) Completion of an approved sale of a
controlling interest in the Company (100% trigger). Deferred shares have no
dividend or voting rights and may be redeemed for £0.01 in aggregate.
Additional tranches of Performance Shares are allotted to directors and key
executives upon meeting operational milestones defined in the RTO Prospectus
§2.11. There were no performance shares awarded during the year ended 30
September 2024.
Options and warrants
Warrants: 275,350,455 warrants were issued on Re-Admission, exercisable at 2
pence per Ordinary Share within two years of issue.
Share options: Awards to directors and employees under IFRS 2 have been
measured using the Black-Scholes model; assumptions include expected
volatility 103%, risk-free rate 3.9%, expected life 5 years, dividend yield 0
%. Fair value charge recognised in the year: £25,153.
Equity and reserves impact
Following completion of the RTO and subsequent fundraising, the share capital
increased to £147,913, the share premium increased to £8,661,623, the
reverse acquisition reserve of £2,320,231 arose on consolidation and parent
company equity is positive at £3.57 million as of 30 September 2024.
Summary
The RTO transformed Neo Energy Metals PLC from a cash shell into an
operational uranium and gold exploration group with substantial South African
resource interests.
6. Segment reporting
For the purpose of IFRS 8, the CODM takes the form of the board of directors.
The Directors are of the opinion that the business of the Group is focused on
two reportable segments as follows:
§ Head office, corporate and administrative, including parent company
activities of raising finance and seeking new investment opportunities, all
based in the UK; and
§ Uranium exploration and mining operations, all based in South Africa.
The geographical information is the same as the operational segmental
information shown below.
Year to 30 September 2024 UK South Africa Total
£ £ £
Administrative expenses (2,363,338) 345,019 (2,018,319)
Reverse acquisition expenses (6,115,898) - (6,115,898)
Operating (loss)/profit (8,479,236) 345,019 (8,134,217)
Finance costs 198 (946) (748)
Other income 1,308,036 - 1,308,036
Finance income 959 - 959
(Loss)/profit before tax (7,170,043) 344,073 (6,825,970)
Net (liabilities)/assets
Assets 128,534 18,292,983 18,421,517
Liabilities (330,214) (18,384,494) (18,714,708)
Net (liabilities)/assets (201,680) (91,511) (293,191)
The comparatives for the unaudited eighteen month period ended 30 September
2023 are for those of NURSA only. The operations of NURSA for that period
were all based in South Africa.
7 Capital management
For the purpose of the Group's capital management, capital includes issued
capital, share premium and all other equity reserves attributable to the
equity holders of the parent. The primary objective of the Group's capital
management is to maximise the shareholder value. The Group manages its
capital structure and makes adjustments in light of changes in economic
conditions. To maintain or adjust the capital structure in the long term, the
Group may adjust future dividend payments to shareholders, return capital to
shareholders or issue new shares. The Group monitors capital using a gearing
ratio, which is 'net debt' divided by total capital plus net debt. The Group
includes within net debt, interest bearing loans and borrowings, trade and
other payables, less cash, excluding discontinued operations.
30 September 2024 30 September 2023
£ £
Interest bearing loans (26,793) -
Trade and other payables (18,198,248) (27,642)
Less : cash and short term deposits 2,585 2,304
Net debt (18,222,456) (25,338)
Equity (277,020) (763)
Total capital (277,020) (763)
Capital and net debt (18,499,476) (26,101)
Gearing ratio 99% 97%
The table below provides a reconciliation of the Group's and Company's
financing liabilities, as required by IAS 7.
Opening balance at 1 October 2023 Cash flows Non-cash movements Closing balance
Unaudited at 30 September 2024
Group £ £ £ £
Unsecured bank loan - - 28,715 28,715
Convertible loan notes - - - -
Bond facility - - - -
Total - - 28,715 28,715
Company
Unsecured bank loan 24,540 (4,873) 9,048 28,715
Convertible loan notes 190,000 - (190,000) -
Bond facility 2,017,739 - (2,017,739) -
Total 2,232,279 (4,873) (2,198,681) 28,715
Cash flow movements represent actual cash inflows and outflows related to
financing activities, such as loan repayments.
Non-cash movements include items that do not give rise to cash flows, such as
the conversion of the bond facility and convertible loan notes into equity,
the write-off of the remaining liability recognised as a credit in the income
statement, and the accrual of unpaid interest.
The write-off of the bond facility liability is presented within finance
income in the income statement, consistent with the derecognition of the
liability. The conversion of loan notes into equity is recognised directly in
equity.
The opening and closing balances in the table reconcile directly to the
respective financing liability lines in the balance sheet, and the cash flow
column aligns with movements presented within financing activities in the
Statement of Cash Flows.
In order to achieve this overall objective, the Group's capital management
aims to ensure that it meets financial requirements that may be attached to
interest-bearing loans and borrowings that define capital structure
requirements.
8 Group operating loss
Year ended Period ended
30 September 2024 30 September 2023
Unaudited
£ £
Wages and salaries (note 9) 1,489,001 -
Share-based payment expense 25,153 -
Legal and professional fees 151,153 (3,497)
Regulatory costs 79,490 219
Audit fees 135,025 -
Office costs 95,345 1,236
Travel and accommodation expenses 43,152 -
Total administrative expenses 2,018,319 (2,042)
9. Directors' and employees
The aggregate payroll costs (including Directors' remuneration) were as
follows:
Year ended Period ended
30 September 2024 30 September
2023
Unaudited
£ £
Fees, bonuses, wages and salaries 1,476,852 -
Social security costs 12,149 -
1,489,001 -
The average monthly number of persons employed by the Group, including
Executive Directors, was:
Year ended Period ended
30 September 2024 30 September 2023
Unaudited
Directors 6 2
Employees - -
6 2
The remuneration of the highest paid director was £498,480. Full details are
outlined in the Directors Remuneration Report.
The Directors consider that the key management personnel of the Company and
Group are the Directors only.
10. Auditors remuneration
Fees incurred during the year in relation to audit are analysed below. There
were no fees in relation to non-audit services.
Year ended Period ended
30 September 2024 30 September
2023
£ £
Fees payable to the Company's auditor for the audit of the Company's annual 125,000 70,000
audit
Fees payable to the component auditor for the audit of the Company's 10,025 -
subsidiaries
135,025 70,000
The fees in the period ended 30 September 2023 represent those of Neo Energy
Metals Plc, in respect of the audit of the Company's financial statements.
11. Net finance income
Year ended Period ended
30 September 2024 30 September
2023
£ Unaudited
£
Interest on loans (748) -
Interest income 959 303
211 303
12. Other income
Year ended Period ended
30 September 2024 30 September
2023
£ Unaudited
£
Other income 1,308,036 -
1,308,036 -
The other income credit relates to a bond facility write off as detailed
below.
Bond facility
The Bond facility of £2,017,739 on 30 September 2023 was extinguished as
follows. Resolutions were passed by the noteholders at a Noteholder meeting
with regard to the redemption of these Series 2017-F2 Loan Notes in full by
way of the issue to the Noteholders of their pro rata entitlement of shares in
Neo Energy Metals PLC at a rate of 15p per £1 at a price of 0.75p per share
on the completion of the reverse takeover on 9 November 2023.
13. Taxation
Year ended 30 September 2024 Period ended 30 September 2023
Unaudited
£ £
GROUP
Total current tax - -
Factors affecting the tax charge for the period
(Loss)/profit on ordinary activities before taxation (6,825,970) 2,345
(Loss)/profit on ordinary activities before taxation multiplied by the (1,706,492) 586
standard rate of UK tax of 25% (2023: 25%)
Reverse acquisition adjustment 1,528,975 -
Disallowable expenses 2,128 -
Tax losses carried forward 175,389 (586)
Tax (credit)/charge for the period - -
No liability to UK corporation tax arose on ordinary activities for the
current period, and no liability to corporate tax arose on operations in South
Africa.
The individual companies in the Group have total unrealised tax losses of
£4,927,719 to carry forward against future profits. There are £4,878,436 of
UK tax losses carried forward (2023: £4,093,379) and £49,283 (ZAR 1,127,873)
(2023: £586 (ZAR 12,273)) South African tax losses carried forward.
No deferred tax asset on losses carried forward has been recognised on the
grounds of uncertainty as to when taxable profits will be generated against
which the losses can be utilised.
14. Earnings per share
Basic earnings per share is calculated by dividing the loss from continuing
operations attributable to equity shareholders of the parent company by the
weighted average number of ordinary shares in issue during the year:
Year ended 30 September 2024 Period ended 30 September
2023
Unaudited
£ £
Loss after tax attributable to equity holders of the parent company (6,816,159) (374)
Weighted average number of ordinary shares 1,106,192,344 145,770,000
Basic and diluted loss per share (pence) from continuing and total operations (0.6p) (0.00p)
There is no difference between the diluted loss per share and the basic loss
per share presented given any adjustment is anti-dilutive. Warrants could
potentially dilute basic earnings per share in the future but were not
included in the calculation of diluted earnings per share as they are
anti-dilutive for the period presented.
15. Investment in subsidiaries
Company £
Cost and net book amount
At 1 October 2023 -
Additions - Neo Uranium Resources South Africa (Pty) Limited (NURSA) 3,139,467
At 30 September 2024 3,139,467
Composition of the Group
Information about the composition of the Group at the end of the reporting
period is as follows:
Name Principal activity Country of incorporation Group % owned subsidiary
Neo Uranium Resources South Africa (Pty) Limited Uranium exploration and mining South Africa 100%
Neo Uranium Resources Beisa Mine Pty) Limited Uranium mining and development South Africa 100%
Desert Star Trading 130 Proprietary Limited Uranium exploration and mining South Africa 50.1%
All of the subsidiaries identified above are included in the consolidated
financial statements. The holdings in the subsidiaries except NURBM are held
directly.
16. Intangible assets
Group
Cost and net book amount Desert Star (Henkries) Prospecting Rights Sunshine Mineral Resources Prospecting Rights Total
£ £ £
At 1 October 2022 (Unaudited) 179,238 - 179,238
Additions (Unaudited) 287,690 - 287,690
At 30 September 2023 (Unaudited) 466,928 - 466,928
Additions 1,306,899 16,509,172 17,816,071
At 30 September 2024 1,773,827 16,509,172 18,282,999
Desert Star (Henkries) Prospecting Rights
As at 30 September 2024 the Directors assessed the carrying value of the
Desert Star Henkries prospecting rights asset, of £1,773,827 as part of the
impairment testing of Henkries Project that is held in Desert Star Trading 130
(Pty) Ltd, in accordance with IAS 36. The Directors concluded that no
impairment is required based on Fair Value Less Cost of Disposal ("FVLCD")
basis since the recoverable amount will be in excess of the expenses incurred.
The assessment was based on:
§ Recent market transactions for comparable mining assets in the region;
§ Independent third- party valuations commissioned by the Company during the
year (J Perold Report: "Mineral asset valuation of the Neo Energy Metals PLC
Uranium Project Henkries Central and North). Valuation where the mid value was
£11,149,159 (US$14,912,000); and
§ Observations of current market prices for mineral tenements and exploration
licences.
The key inputs to the assessment considered:
§ Benchmark transactions multiples (lbs of the Resources and the Uranium US$
price/ lb);
§ Adjustments for asset specific factors including stage of development and
the regional risk, as well as the quality and quantity of the geological
information as per the Competent Persons Report "C.P.R." and the independent
valuation; and
§ Disposal Cost of 2.5% of the Gross fair Value consistent with the industry
norms.
The amount as per an Independent Valuation Report concluded that the value was
£11,149,159 (US$14,912,000). The Group does not yet hold a valid title to
this respective project until such time as the section 11 transfer.
Sensitivity analysis
The discounted cash flow model includes a 10% discount rate. An increase in
the discount rate to 16.25% decreases the Net Present Value of the project to
nil.
The Company considered the percentage reduction in the transaction value where
breakeven is reached, beyond which the project would be impaired. From the
analysis completed the percentage reduction where breakeven would be reached
is 84.1%.
Sunshine Mineral Resources Prospecting Rights "SSMR"
As at 30 September 2024 the Directors assessed the carrying value of the asset
of £16,509,172 as part of impairment testing of the Beisa North and Beisa
South Project that is held in Neo Uranium Beisa Mine (Pty) Limited, in
accordance with IAS 36.
The Directors concluded that no impairment is required based on the FVLCD.
The recoverable amount will be in excess of the expenses incurred.
This was estimation was based on:
§ Recent Market Transactions for comparable mining assets in the region;
§ Independent third- party valuations commissioned by the Company during the
year (VC Muller from Proteck Report "Independent Valuation of the Uranium and
Gold Resources and Beisa North and Beisa South) Valuation Mid Value
USD$157,060,000; and
§ Observations of market prices for mineral tenements and exploration
licences.
No discounted cashflow modelling was applied.
The key inputs to the assessment considered:
§ Benchmark transactions multiples (lbs of the Resources and the Uranium US$
price/ lb);
§ Adjustments for asset specific factors including stage of development and
the regional risk, as well as the quality and quantity of the geological
information as per the Competent Persons Report "C.P.R." and the independent
valuation; and
§ Disposal Cost of 2.5% of the Gross fair Value consistent with the industry
norms.
The amount as per an Independent Valuation Report concluded that the value was
£117,420,560 (US$157,060,000). The Group does not yet hold a valid title to
this respective project until such time as the section 11 transfer
Sensitivity analyses
The Company considered the percentage reduction in the transaction value where
breakeven is reached, beyond which the project would be impaired. From the
analysis completed the percentage reduction where breakeven would be reached
is 85.9%.
17. Trade and other receivables
Group Company
Current assets 30 September 30 September 30 September 30 September
2024 2023 2024 2023
Unaudited
£ £ £ £
Other receivables and prepayments 49,331 9,885 40,853 489,618
Amounts owed by directors 86,602 - 86,602 -
135,933 9,885 127,455 489,618
Non-current assets
Amounts owed by group undertakings - - 1,185,233 -
135,933 9,885 1,312,688 489,618
There are no material differences between the fair value of trade and other
receivables and their carrying value at the year end.
The amounts owed by group undertakings is an amount due from NURSA. The
balance is unsecured, interest free and repayable on demand.
18. Cash and cash equivalents
Group Company
30 September 30 September 30 September 30 September
2024 2023 2024 2023
Unaudited
£ £ £ £
Cash and cash equivalents 2,585 2,304 1,080 77
2,585 2,304 1,080 77
19. Trade and other payables
Group Company
30 September 30 September 30 September 30 September
2024 2023 2024 2023
Unaudited
£ £ £ £
Trade payables 323,929 107,337 229,352 411,621
Other payables and accruals 360,002 (175) 237,705 1,059,732
Deferred consideration 17,500,109 - - -
Taxes and social security 14,208 - 14,208 -
18,198,248 107,162 481,265 1,471,353
The deferred consideration of £17,500,109 (ZAR400,000,000) is due to the
vendors of the Sunshine Mineral Reserve asset acquisition on the transfer of
the applicable prospecting rights to Neo Uranium Resources Beisa Mine (Pty)
Ltd once Section 11 notice of the Mineral Resources and Petroleum Development
Act has been issued.
20. Borrowings
Group Company
30 September 30 September 30 September 30 September
2024 2023 2024 2023
Unaudited
£ £ £ £
Non-current liabilities
Unsecured bank loan 26,793 - 26,793 24,540
26,793 - 26,793 24,540
Current liabilities
Convertible loan notes - - - 190,000
Unsecured bank loan 1,922 - 1,922 9,588
Bond facility - - - 2,017,739
1,922 - 1,922 2,217,327
Terms and Repayment schedule
Interest rate Year of Maturity 30 September 30 September
2024 2023
£ £
Unsecured bank loan 2.5% 2027 28,715 34,128
Total interest-bearing liabilities 28,715 34,128
Repayment schedule:
Amounts payable within 1 year Amounts payable between 1-5 years Amounts payable after 5 years Total
£ £
£
£
Unsecured bank loan 2,334 22,458 3,923 28,715
Convertible loan notes
Convertible loan notes of £90,000, were issued with interest at 10% per
annum, convertible at 0.75 pence per share and convertible at any time but
were fully repayable upon the completion or collapse of the planned reverse
take-over.
Convertible loan notes of £100,000, were non-interest bearing, convertible at
0.75 pence per share and convertible at any time but were fully repayable upon
the completion or collapse of the reverse take-over.
All convertible loan notes were converted to Neo Energy Metals PLC equity on
the completion of the reverse takeover on 9 November 2023.
21. Share based payments
Warrants
As part of the RTO on 9 November 2023, the Company offered warrants to various
pre-RTO subscribers and to its broker First Equity. These are deemed
investor warrants and entitle the holder to subscribe for an Ordinary share in
the Company at a price of 2 pence per Ordinary share and will expire 2 years
from re-admission being 9 November 2025. The following investor warrants were
issued which fall outside the scope of IFRS 2 and as such have been issued at
nil cost:
Number of warrants Weighted average exercise price
Outstanding 1 October 2023 - -
Issued on re-admission 275,350,455 2 pence
Warrants cancelled (155,555,555) 2 pence
Outstanding on 30 September 2024 119,794,900 2 pence
Weighted average remaining contractual life 1.11 years
The warrants have vested on grant and have been recognised in full upon
issue. If the warrants remain unexercised after a period of two years from
the date of grant being 9 November 2025, they will expire. The holder may
exercise the subscription right at any time within the subscription period.
Options
On 29 April 2024 the Directors agreed to introduce a share option scheme which
was approved by the board of Directors of the Company.
The scheme has authorised the issue of 150,000,000 share options over
150,000,000 ordinary shares of £0.0001 to the Directors. The share options
are to have an exercise price of 1.25 pence and have an expiry date of 31 May
2029.
The Non-Executive Directors are to receive up to 20,000,000 options each, with
the Executive Directors receiving the balance equally, less 10,000,000 options
set aside for key employees. Further details are in the Remuneration Report.
Under IFRS 2 the Company must recognise the fair value of the options granted
as an expense in the Income Statement. The Black Scholes model was used to
calculate the fair value of the options granted for the year using the
following key criteria:
Share price at date of grant 0.62 pence
Exercise price of each option 1.25 pence
Number of share options 150,000,000
Life of each option from date of grant 5 years
Expected volatility 103%
Dividend yield 0.00%
Risk free rate of interest 3.9%
Minimum vesting period 5 years
Calculated fair value per share 0.419 pence per share
The Group recognised a total expense in the year of £25,153 relating to the
grant of those options (2023: £nil).
22. Share capital, share premium and reserves
Ordinary shares of £0.0001 Ordinary shares Deferred shares Share premium Merger reserve Total
£ £ £ £
£
9 November 2023
Issued share capital of Neo Energy Metals PLC at 30 September 2023 145,770,000 145,770 - 736,782 - 882,552
(nominal value of £0.001 per share)
Redesignation of shares from £0.001 to £0.0001 par value 1,457,700,000 145,770 - 736,782 - 882,552
Redesignation from ordinary to deferred shares (1,311,930,000) (131,193) 131,193 - - -
Issue of shares for acquisition of subsidiary 304,802,666 30,480 - - 3,108,987 3,139,467
Issue of shares for placings 340,935,685 34,094 - 1,624,210 - 1,658,304
Issue of shares to settle debt 212,163,117 21,216 - 1,454,010 - 1,475,226
Issue of shares in lieu of fees 208,100,000 20,810 - 2,580,440 - 2,601,250
Totals following the reverse acquisition 1,211,771,468 121,177 131,193 6,395,442 3,108,987 9,756,799
Balance brought forward 1,211,771,468 121,177 131,193 6,395,442 3,108,987 9,756,799
Issue of placing shares December 2023 140,000,000 14,000 - 1,036,000 - 1,050,000
Issue of placing shares December 2023 38,800,000 3,880 - 481,120 - 485,000
Issue of shares on 9,181,315 918 - 67,942 - 68,860
April 2024
Issue of placing shares June 2024 33,800,000 3,380 - 250,120 - 253,500
Issue of placing shares June 2024 866,636 86 - 6,413 - 6,499
Issue of shares 20,000,000 2,000 - 148,000 - 150,000
August 2024
Issue of shares 5,882,353 588 - 43,529 - 44,117
August 2024
Issue of placing shares September 2024 18,831,200 1,884 - 233,057 - 234,941
At 30 September 2024 1,479,132,972 147,913 131,193 8,661,623 3,108,987 12,049,716
Share capital - Ordinary shares
Holders of the ordinary shares are entitled to dividends as declared from time
to time and are entitled to one vote per share at general meetings of the
Company.
Share capital - Deferred shares
Deferred shares are a class of equity instruments that carry no voting rights,
no rights to dividends, and only minimal or contingent rights to capital on a
winding-up.
Share premium
The share premium account comprises of amounts subscribed for shares in excess
of their nominal value. The incremental costs directly attributable to the
issue of ordinary shares are recognised as a deduction from the share premium
arising on that issue of shares.
Share options reserve
The share options reserve represents the value of share options granted to
directors and employees of the Company. This reserve reflects the cost of
these options over time granted to those directors and employees.
Reverse acquisition reserve
The reverse acquisition reserve represents the adjustment required to reflect
the capital structure of the legal parent (the Company) in the consolidated
financial statements following the reverse acquisition of Neo Energy Metals
PLC, which is identified as the accounting acquiree under IFRS 3 Business
Combinations.
In accordance with IFRS 3, the consolidated financial statements represent a
continuation of the financial statements of Neo Uranium Resources South Africa
(Pty) Ltd ("NURSA"), with the net assets of the Company recognised at fair
value at the acquisition date. The difference between the nominal value of the
shares issued by the Company to effect the business combination and the
capital structure of Neo Energy Metals PLC has been recorded in the reverse
acquisition reserve. The balance in this reserve does not constitute a
realised gain or loss and is therefore not distributable.
Translation reserve
The translation reserve comprises all foreign currency differences arising
from the translation of the financial statements of foreign operations.
Merger reserve
The merger reserve arose on the issue of shares to facilitate the reverse
acquisition of the Company by Neo Uranium Resources South Africa (Pty) Ltd
("NURSA") on 9 November 2023. Although the Company is the legal acquirer,
NURSA was identified as the accounting acquirer under IFRS 3 Business
Combinations (reverse acquisition).
Retained earnings
Retained earnings comprises of accumulated profits or losses recognised in the
consolidated statement of profit or loss and other comprehensive income.
23. Accumulated deficit
Group Company
30 September 30 September 30 September 30 September
2024 2023 2024 2023
Unaudited
£ £ £ £
At start of period 1,457 (888) (4,318,278) (3,418,650)
Decrease in equity holding of subsidiary (549,004) - - -
Cost of shares issued (2,568,335) - (2,568,335) -
(Loss)/profit for the period (6,816,159) 2,345 (1,619,407) (899,628)
(9,932,041) 1,457 (8,506,020) (4,318,278)
Contingent liabilities
The company has no contingent liabilities in respect of legal claims or other
known claims arising from the Group's activities.
24. Related party transactions
Group
The Group's related parties as defined by International Accounting Standard 24
(revised), the nature of the relationship and the amount of transactions with
them during the period were as follows:
Nature of relationship Year ended Period ended Nature of transaction
30 September 2024 30 September 2023 Unaudited
£ £ £ £
Total transactions in the year Balance at the year end due (to)/from Total transactions in the period Balance at the period end due (to)/from
Loans from related parties
Gathoni Muchai Investments Limited 1 - (487,745) - - Loan from Gathoni Muchai Investments Limited and expenses paid on behalf of
the Company.
Mayflower Energy Metals Limited 8 - - - (383,254) Loan from Mayflower Energy Metals Limited
TOTAL - (487,745) - (383,254)
The balance of £487,745 due to Gathoni Muchai Investments Limited is
unsecured, interest free and repayable on demand.
Directors' Remuneration
Gathoni Muchai Investments Limited 1 498,480 - - - Fees and bonus in respect of services for the year ended 30 September 2024.
Chapman Longley Limited 2 393,832 - - - Fees and bonus in respect of services for the year ended 30 September 2024.
Brookborne Limited 3 393,832 - - - Fees and bonus in respect of services for the year ended 30 September 2024.
Bongani Raziya 4 26,833 - - - Fees in respect of services for the year ended 30 September 2024.
Jackline Muchai 5 26,833 - - - Fees in respect of services for the year ended 30 September 2024.
Sean Heathcote 7 137,042 - - - Salary in respect of services for the year ended 30 September 2024.
TOTAL 1,476,852 - - -
Amounts owed by related parties
Gathoni Muchai Investments Limited 1 21,897 21,897 - - Prepayment of fees in respect of services for the year ending 30 September
2025.
Chapman Longley Limited 2 21,716 21,716 - - Prepayment of fees in respect of services for the year ending 30 September
2025.
Brookborne Limited 3 42,989 42,989 - - Prepayment of fees in respect of services for the year ending 30 September
2025.
TOTAL 86,602 86,602 - -
Administrative expenses
Fandango Holdings PLC 9 2,850 - - - Balance written off through mutual agreement with Fandango Holdings PLC.
TOTAL 2,850 - - -
Share capital
Charles Tatnall 9 (80,600) - - - Share capital issued to Director
James Longley 11 (127,103) - - - Share capital issued to Director
Bongani Raziya 4 (68,860) - - - Commission paid wholly in ordinary shares for Bongani's part in the Desert
Star acquisition.
Jason Brewer 6 (118,366) - - - Share capital issued to Director
Sean Heathcote 7 (74,500) - - - Share capital issued to Director
Jackline Muchai 5 (112,768) - - - Share capital issued to Director
Gathoni Muchai Investments Ltd 1 (59,015) - - - Share capital issued to Company of a Director
TOTAL (641,212) - - -
Company
The Directors' transactions in the Company are included in the Group
disclosure above. In addition to these, the Company has the following
related party transactions as defined by International Accounting Standard 24
(revised).
Amounts owed by group undertakings
Neo Uranium Resources SA (Pty) Limited 10 1,185,233 1,185,233 - - Intercompany transactions between Neo Energy Metals PLC (Company) and NURSA.
TOTAL - 1,185,233 1,185,233 - -
AAmounts owed to related parties
DCA Accountants 14 - - (60,000) (60,000) Director fees in respect of James Longley. This was settled as part of the
RTO.
TOTAL - - (60,000) (60,000)
Loans from related parties
James Longley 11 - - (4,815) (4,815) Loan advanced to the Company and settled as part of the RTO.
Fandango Holdings PLC 9 - - - (97,840) Loan advanced to the Company and settled as part of the RTO.
Plutus Energy Limited 12 - - - (13,656) Loan advanced to the Company and settled as part of the RTO.
Plutus Powergen PLC 13 - - - (4,064) Loan advanced to the Company and settled as part of the RTO.
Mayflower Energy Metals Limited 8 - - - (91,826) Loan advanced to the Company and settled as part of the RTO.
Gathoni Muchai Investments Limited 1 (374,406) (374,406) - - Loan from Gathoni Muchai Investments Ltd.
TOTAL (374,406) (374,406) (4,815) (212,201)
Nature of relationships
1 Gathoni Muchai Investments Limited is a Company controlled by Jason Brewer,
Executive Chairman.
2 Chapman Longley Limited is a Company controlled by James Longley,
Non-Executive Director.
3 Brookborne Limited is a Company controlled by Charles Tatnall, Non-Executive
Director.
4 Bongani Raziya is a Non-Executive Director.
5 Jackline Muchai is a Non-Executive Director.
6 Jason Brewer is Executive Chairman
7 Sean Heathcote is Technical Director.
8 Mayflower Energy Metals Limited was the owner of NURSA prior to the reverse
take over on 9 November 2023.
9 Charles Tatnall is a Non-Executive Director and is a Director of Fandango
Holdings PLC.
10 Neo Energy Metals Plc holds 100% shareholding in Neo Uranium Resources South
Africa (Pty) Ltd.
11 James Longley is a Non-Executive Director.
12 James Longley, Non-Executive Director and Charles Tatnall, Non-Executive
Director are both Directors of Plutus Energy Limited.
13 James Longley, Non-Executive Director and Charles Tatnall, Non-Executive
Director are both Directors of Plutus Powergen PLC.
14 DCA Accountants is a company owned by James Longley. Fees were billed from
this company for his Company Director fees in the period ended 30 September
2023.
Performance shares
No awards were made to related parties in the year other than bonuses in
shares to three directors - see Remuneration Report for further details and
note 5 for the performance related conditions relating to these awards.
25. Events after the reporting period
On 14 October 2024, the Company announced that its wholly owned South African
subsidiary, Neo Uranium Resources South Africa (Pty) Ltd ('NURSA'), had
entered into a binding heads of agreement to acquire a 100% interest in the
Henkries South Uranium Project ('Henkries South') from South African uranium
exploration company, Eagle Uranium SA (Pty) Ltd ('Eagle Uranium').
Henkries South comprises one granted Prospecting Licence that extends over
approximately 1,050km(2)and is immediately south of and adjoins the Company's
existing Henkries Uranium Project located in the administrative district of
Namaqualand in the Northern Cape Province of South Africa.
The acquisition of Henkries South materially increases the Company's strategic
landholding in the region by over 130% from a current 742km(2) area to almost
1,800km(2). It adds a further 10km strike length of shallow paleo-channels to
the current 36km of strike length of paleo-channels that have been
demonstrated to host the shallow uranium mineralisation at the Company's
Henkries Project from the multiple resource drilling programmes and
feasibility work completed as part of the historic US$30 million of
exploration and development expenditure.
Following on from the above, the Company announced on 25 October 2024 that the
Company's South African based lawyers are finalising the formal share sale and
purchase agreement for the acquisition of 100% of the Henkries South Uranium
Project. The documentation process remains on track for completion by the end
of 2025, with the Company and its advisors to then seek receipt of all
applicable regulatory approvals for the acquisition.
The balance of shares, due to Eagle Uranium shareholders under the agreement,
will be subject to the completion of certain regulatory milestones including
the transfer of the mineral rights. These shares will also be issued at
1.25p per share and will be subject to a six-month lock-in period, effective
from the date of share issuance.
On 18 November 2024 the Company issued 25,000,000 ordinary shares to Eagle
Uranium SA Limited as part consideration for the acquisition of the Henkries
South Uranium Project.
On 26 November 2024 the Company allotted a number of shares to various parties
that were originally earmarked for an investor who was not able to invest
further funds totalling £2,000,000 as was originally agreed. The total
number of shares involved was 47,306,668 and these were reallocated as
follows:
· 45,973,334 to directors in lieu of fees owed to them; and
· 1,333,334 allotted to a service provider in lieu of fees owed.
On 9 December 2024, the Company announced that its wholly owned South African
subsidiary, Neo Uranium Resources Beisa Mine (Pty) Limited ("NURB")
has entered into a sale and acquisition agreement with a wholly owned
subsidiary of Sibanye Stillwater Limited ('Sibanye-Stillwater'), to acquire a
100% interest in the Beatrix 4 mine and shaft complex, the processing plant
complex and associated infrastructure located in the Witwatersrand Basin, in
the Free State Province of South Africa ("the Beisa Uranium Project").
The Sibanye-Stillwater Group is listed on the New York and Johannesburg Stock
Exchanges, with a market capitalisation of about R51 billion (approximately
USS$2.77 billion). It is one of the world's largest primary producers of
platinum, palladium, and rhodium, and a top tier gold producer. The Group has
also recently begun to diversify its asset portfolio into battery metals
mining and processing and increase its presence in the circular economy by
growing its recycling and tailings reprocessing exposure globally.
On completion of the transaction, Sibanye-Stillwater will become the Company's
largest shareholder and have the right to appoint directors to the Board.
Sibanye-Stillwater will also hold pre-emption rights of first refusal in
respect of any proposed new equity issuance by the Company, in order to
maintain its significant and strategic shareholding in the Company.
The Beisa Uranium Project, which has total SAMREC Code Compliant measured
uranium and gold resources of 8.5Mlbs and 0.4Mozs respectively and further
indicated resources of 18.3Mlbs of uranium and 0.8Mozs of gold, has been
subject to various pre-feasibility and development studies.
The Beisa Projects, comprise total SAMREC Code compliant resources of 90.24
million pounds ('Mlbs') of U₃O₈ and 4.17 million ounces ('Mozs') of gold.
The Beisa Projects comprise two granted Prospecting Rights which are
immediately north and south of the Beatrix 4 mine and shaft complex, the
processing plant complex and associated infrastructure (the 'Beisa Uranium
Project'), which the Company's majority owned subsidiary, NURB, has entered
into a sale and acquisition agreement with Sibanye Gold Proprietary Limited
('SGL'), a wholly owned subsidiary of Sibanye Stillwater Limited
('Sibanye-Stillwater') to acquire.
On 3 January 2025 the capital repayments in respect of the Company's Bounce
Back loan were paused for six months and the final repayment date was extended
to 15 November 2027.
On 20 January 2025 260,000,000 performance shares were allocated to directors
as part of a performance related bonus as certain performance-related
conditions were met. These were allocated as follows:
Issued 60,000,000 to Sean
Heathcote
Issued 40,000,000 to Jason
Brewer
Issued 40,000,000 to Jackline
Muchai
Issued 40,000,000 to Bongani
Raziya
Issued 40,000,000 to James
Longley
Issued 40,000,000 to James Tatnall
On 29 January 2025, the Company announced that its wholly owned and recently
established South African subsidiary, NURB, has entered into a landmark
agreement with South African mining company, Siyakhula Sonke Empowerment
Corporation (Pty) Ltd ('SSC Group') as part of the Company's commitment to
advancing Broad-Based Black Economic Empowerment ('B-BBEE') in South Africa
('BEE Agreement').
In accordance with South Africa's broad-based black economic empowerment
government policies to advance economic transformation and enhance the
economic participation of historically disadvantaged persons in the South
African economy, the Company's subsidiary has entered into the BEE Agreement
with an active partner, the SSC Group, to ensure a broad based and meaningful
participation from the local community and employees in the Company's plans to
recommence uranium and gold mining operations at the Beisa Uranium Project.
Upon receipt of all necessary regulatory approvals for the Company to complete
the acquisition of the Beisa Uranium Project, the Company will, in terms of
the BEE Agreement, transfer 30% of its shareholding in NURB for a total
see-through purchase price of ZAR 390,000,000 (approx. £17 million)
('Purchase Price'). A newly established Employee Empowerment Trust and
Community Empowerment Trust (the 'Trusts') will each hold 5%, whilst the SSC
Group will hold the 20% balance of the shareholding. The Trusts shareholdings
in NURB will be held by a nominated attorney's trust as nominee shareholders,
until such time as the Trusts have been formally registered in accordance with
applicable laws.
On 7 March 2025, the Company announced that formal legal documentation in
respect of its acquisition of 100% of Henkries South located in the
administrative district of Namaqualand in the Northern Cape Province of South
Africa, has now been signed. Further to the announcement of 14 October 2024, a
formal Share Sale and Purchase Agreement ('Agreement') and associated Board
and Shareholder resolutions have now been signed by the Company, and also by
a South African uranium exploration company, namely Eagle Uranium SA (Pty)
Limited ('Eagle Uranium') and by Eagle Uranium's Shareholders. Under the
Agreement, the Company has now conditionally acquired a 100% shareholding in
Henkries South, with the only outstanding condition, being the applicable
regulatory approvals that are expected to be issued in the ordinary course of
business and include approval in terms of Section 11 of the Minerals and
Petroleum Resources Development Act ("MPRDA") of 2002.
On 8 March 2025 further documentation was signed in relation to the purchase
of Beisa North Prospecting Rights from Sunshine Mineral Reserves Proprietary
Limited. It was agreed that the company would pay a cash payment of £208,282
(ZAR5 million) and would issue 28,666,667 new ordinary shares in the Company
to the value of £208,282 ZAR5 million.
On 15 May 2025, the Company announced that it has received notification
from Sibanye Stillwater, that regulatory applications have now been formally
submitted to the Department of Mineral Resources and Energy ('DMRE') in South
Africa, in respect to the Company's majority owned subsidiary, NURB's proposed
acquisition of a 100% interest in the Beisa Uranium Project.
The Company can also confirm that a total of 381,466,667 Ordinary Shares are
to be issued in respect to satisfaction of key milestones and performance
criteria associated with the advancement of the Company's uranium growth
strategy in South Africa.
On 16 May 2025, NEO announced that its Non-Executive Directors together with
the Executive Chairman have each agreed to receive their director fees for
the six months ended 31 May 2025 in Ordinary Shares in lieu of cash
payments. Accordingly, an aggregate amount of 22,400,000 Ordinary Shares at
an issue price 0.75 pence are to be issued to the above directors.
A further 13,600,000 Ordinary Shares at an issue price of 0.75 pence, were
issued on 19 May 2025 to four different service providers who have also
elected to be paid in Ordinary Shares of the Company, in lieu of cash
payments, as a commitment of their ongoing support of the Company's activities
and growth strategy.
143,977,808 Ordinary Shares at an issue price of 0.75 pence, were issued under
the AUO Commercial Brokerage LLC Subscription Agreement, as approved by
shareholders and as set out in the Prospectus. Funds received have been
applied to working capital costs of the Company's activities in South Africa
and the United Kingdom and in respect of the acquisitions of the Beisa Uranium
Project and Henkries South Uranium Project in South Africa.
On 19 May 2025 the Company issued a further 157,540,836 ordinary shares in the
company at a price of 0.75 pence each in lieu of fees owed. 78,407,503 were
allotted to directors or their assignees in lieu of directors fees owed and
the remainder were allotted to service providers in lieu of fees owed.
On 21 May the Company issued a further of 104,000,000 ordinary shares in lieu
of fees owed at a price of 0.75 pence each. 100,000,000 ordinary shares were
issued as part payment of the Henkries Uranium Project and the balance of
4,000,000 ordinary shares to a service provider.
On 30 June 2025, NEO announced that it is progressing a Fast Track Secondary
Listing on the Johannesburg Stock Exchange (JSE), Africa's leading stock
exchange. The move is part of the Company's broader growth and capital markets
strategy to enhance liquidity, broaden its shareholder base, and increase
visibility amongst African and international investors. The listing will also
position Neo Energy Metals PLC more strategically as it advances its uranium
projects in Southern Africa.
On 11 March 2025, NEO announced that as part of the Company's previously
announced agreement to acquire the Beisa North and Beisa South Uranium as well
as the Gold Projects located in the Witwatersrand Basin in the Free State
Province of South Africa (together the 'Beisa Projects'), it has made a cash
payment of ZAR5 million (approximately £215,000) to Sunshine Mineral Reserve
(Pty) Limited ('Sunshine') and issued new ordinary shares in the Company to
the value of ZAR5 million (approximately £215,000).
26. Capital commitments
Neo Uranium Resources Beisa Mine (Pty) Ltd signed an agreement to acquire two
prospecting rights from Sunshine Minerals Resources (Pty) Ltd in the year at a
price of ZAR 402,500,000 (£17,587,400). A deposit was paid in respect of the
acquisition in the financial year under review of ZAR 2,500,000 (£109,238).
The outstanding balance of ZAR 400,000,000 (£17,478,162) is due and payable
on a Section 11 registration at the Department of Minerals and Resources, 50%
in cash and 50% in Ordinary Shares of Neo Energy Metals PLC.
Section 11 is the approval and acceptance by Ministerial Consent to transfer
the Prospecting Rights as per the South African Mineral Resources Petroleum
Development Act.
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