REG - Oracle Power PLC - Interim Results
23/09/2022 07:00
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RNS Number : 3614A Oracle Power PLC 23 September 2022
23 September 2022
Oracle Power PLC
("Oracle", the "Company" or the "Group")
Unaudited Interim Results for the six months to 30 June 2022
Oracle Power PLC (AIM: ORCP), the international natural resources project
developer, announces its unaudited interim results for the six months ended
30 June 2022, which will also be made available on its website at:
www.oraclepower.co.uk.
Chairman's Statement for the six months to 30 June 2022
Summary of Interim Results
Oracle has made significant process in relation to its multi-project portfolio
consisting of two gold tenements in Western Australia, the Thar coal project
in Pakistan (the "Thar Project") and a very exciting green hydrogen project in
the south of Pakistan (the "Green Hydrogen Project"). For the Green Hydrogen
Project, the Company has set up a joint venture company, Oracle Energy Limited
("Oracle Energy"), with Kaheel Energy FZE ("Kaheel Energy"), which is wholly
owned by His Highness Sheikh Ahmed Bin Dalmook Al Maktoum. As is to be
expected for a project development company with four pre-revenue projects at
development stages, the Company's financial results for the six months to 30
June 2022 show the Group to have made a loss after taxation of £356,295
(2021: £301,971). At 30 June 2022, the Group had cash and cash equivalents of
£762,300 (2021: £975,820) and total assets less current liabilities of
£6,890,348 (2021: £6,009,841).
Operational Update
Australia
The Company holds two prospective gold assets in a globally significant gold
region of Western Australia, The Northern Zone Project and the Jundee East
Gold Project. The Northern Zone Project is located 25km east of the major
gold mining centre of Kalgoorlie, the home of the 'Super Pit' mine which is
the second largest gold mine in Australia; and the Jundee East Gold Project is
located approximately 9km east of Northern Star's Jundee Gold Mine, one of
Australia's largest gold mines.
Pakistan
The Pakistan authorities continue to work with the Chinese Government through
the China-Pakistan Economic Corridor ("CPEC"). This will assist with the
obtaining of finance to develop Thar Block VI. We keep in close touch with
the Government of Pakistan at both federal and provincial levels to ensure the
continued support for the Thar Project.
Post period end, we received the letter of intent ("LOI") from Directorate of
Alternative Energy of the Government of Sindh relating to the establishment of
a 1,200MW hybrid solar/wind, green hydrogen/power project in Pakistan,
enabling development of the Green Hydrogen Project to commence.
In the Chief Executive Officer's statement contained within this report, Ms
Memon has prepared a separate operational update which further details the
Company's progress in Australia and Pakistan.
Going Concern
The Company raised £800,000 before expenses in April 2022 to fund the Green
Hydrogen Project and, subsequent to the period end, another £500,000 before
expenses was raised in August 2022. The Board believes that the Company is
sufficiently funded to progress its various projects.
Conclusion
The Board extends its appreciation to the Energy Department, the Government of
Sindh, as well as the Ministry of Energy (Power Division), Government of
Pakistan, for their continued support. The Board also continues to be very
grateful for the patience and support of the Company's shareholders.
Mark W. Steed
Chairman of the Board - Oracle Power PLC
Date: 22 September 2022
Chief Executive Officer's statement for the six months ended 30 June 2022
In the first half of 2022, we made significant progress in relation to the
development of our Green Hydrogen Project in Pakistan and have also conducted
decisive activities on ground in Australia.
Review of Operations
Pakistan
Thar Block VI
As part of our continuing development of Thar Block VI, in January 2022, we
signed an MoU with Sui Southern Gas Company Limited ("SSGC") a publicly listed
company on the Pakistan Stock Exchange, and majority-owned by the Government
of Pakistan. The MoU relates to the buy back and joint development of a
synthetic natural gas project using Thar Block VI coal.
This development places us in the frontline for the commercialisation of coal
to gas/liquid production at Thar Block VI, as the Government of Pakistan
finalises a policy for initiatives of this nature.
Green Hydrogen Project
In the first half of 2022, Oracle has moved swiftly to implement a new focus
on green energy development. In order to realise the objective of setting up
one of the largest green hydrogen projects in the region, Oracle entered into
a joint venture agreement with His Highness Sheikh Ahmed Dalmook Al Maktoum
(represented through Kaheel Energy, a company wholly owned by him) in March
2022. The primary objective of partnering with His Highness Sheikh Ahmed
Dalmook Al Maktoum, was to leverage his influence and financial strength in
the region and thereby expedite the development of this project of significant
importance.
A joint venture company, Oracle Energy, has been established, and has already
received the first tranche of funds from both Oracle and Kaheel Energy in the
prescribed 30:70 ratio. Further funds have been invested post period end
such that the capitalisation of Oracle Energy, is now almost £2 million.
In March 2022, we appointed a financial adviser specifically for the Green
Hydrogen Project, Hannam and Partners Advisory. Furthermore, to progress the
development of the Green Hydrogen Project, Oracle successfully raised
£800,000 in April 2022 and, subsequent to the period end, another £500,000
was raised in August 2022.
As part of the partnership building strategy for the Green Hydrogen Project,
encompassing technology suppliers, financiers and off takers, Oracle Energy
signed an MoU with a United States hydrogen fuel cell company, Nuvera Fuel
Cells LLC, in June 2022, and is jointly pursuing the roll-out of a pilot
hydrogen bus project in collaboration with local bus companies. In June 2022,
Oracle also entered into an MoU with a hydrogen storage company in China,
Jiangsu Guofu Hydrogen Energy Equipment Co, in order to jointly explore
storage and port infrastructure development for the Green Hydrogen Project.
During the first half of 2022, Oracle Energy also pursued approval for an LOI
from the Directorate of Alternative Energy of the Government of Sindh, for the
setting up of the 400 MW green hydrogen and 1200 MW hybrid power plant located
in the wind corridor in Sindh and this has been approved and awarded post
period end.
We also maintained an active dialogue with various departments within the
Government of Pakistan for the allocation of land, following the
identification of a suitable site after a thorough survey and technical
analysis.
During this period, Oracle also built a credible relationship with KOTRA Korea
Trade-Investment Promotion Agency, and developed meaningful relations with
Korean enterprises, based on the importance of Korea in the global hydrogen
economy. Active dialogue is continuing with a number of potential partners.
Oracle Energy has also pursued feasibility study contracts with important
technology providers and many of these will be finalised in the second half of
2022.
Australia
In Western Australia, Oracle has extensively explored both of the Company's
tenements during the first half of 2022.
Positive assay results were received in January 2022 from the maiden drilling
programme at the Northern Zone Project. This first phase of reverse
circulation drilling successfully targeted gold mineralisation within a series
of stacked porphyry intrusions. An exploration target based on historical
results and the results of the recent seven drill holes, identified an
exploration target of 2.5 to 4.8Moz of gold.
Further to these encouraging results, Oracle stepped up testing and received
promising test results for samples checked metallurgically for extraction. The
test results of 9 June 2022 confirmed that good gold recoveries can be
achieved within six hours of 83.3% and up to 90.4% over 72 hours. Results
announced on 13 June 2022, indicated higher recoveries of 92.9% on average
over 24 hours. These recovery results form the basis for moving forward with
drilling to define a maiden inferred JORC resource, which would be similar to
other large low grade systems in Australia. During the period, active
dialogue has also taken place with possible partners to progress the
development of the Northern Zone Project and these remain ongoing.
Extensive exploration work was also conducted at Jundee East Project. This
included geochemical sampling over the block, which showed positive results
and a drilling programme was subsequently carried out. The results of the
drilling programme did not confirm positive results for gold mineralisation
and further assessments have been commissioned for other minerals which are
expected to be completed post period end.
Outlook
During the first half of 2022, we have actively pivoted towards a more
environmentally responsible project development strategy, by selecting green
hydrogen as the most relevant fuel to be our primary focus going forward. The
Company is also reviewing other global opportunities, especially in green
energy, with His Highness Sheikh Ahmed Dalmook Al Maktoum.
However, we also remain determined to generate value from the investments that
we have made in gold by turning those projects into revenue generating assets
for the Company. In parallel, we are pursuing the development of our coal
block in Thar and are currently investigating strategies for development which
would be more aligned with national and international energy priorities. We
have access to a large land resource located within a very viable geographical
area, which is being developed actively. We aim to benefit from developments
in this area which include water systems, a railway line for transporting coal
and new transmission systems. It is expected that an exciting and innovative
plan for development will be in place soon.
The management and board of the Company acknowledges the support of all
shareholders and remain committed to generating an attractive return on their
investment.
Naheed Memon
Chief Executive Officer - Oracle Power PLC
Date: 22 September 2022
CONSOLIDATED INCOME STATEMENT
FOR THE SIX MONTHS TO 30 JUNE 2022
(Unaudited) (Unaudited) (Audited)
6 Months to 6 Months to Year ended
30 June 2022 30 June 2021 31 Dec 2021
CONTINUING OPERATIONS £ £ £
Revenue - - -
Administrative expenses (356,538) (302,032) (881,973)
OPERATING LOSS (356,538) (302,032) (881,973)
Finance costs - - -
Finance income 243 61 94
LOSS BEFORE INCOME TAX (356,295) (301,971) (881,879)
Income tax - - -
LOSS FOR THE PERIOD (356,295) (301,971) (881,879)
Earnings per share expressed in pence per share:
Basic (0.01) (0.01) (0.04)
Diluted (0.01) (0.01) (0.04)
STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS TO 30 JUNE 2022
(Unaudited) (Unaudited) (Audited)
6 Months to 6 Months to Year ended
30 June 2022 30 June 2021 31 Dec 2021
£ £ £
LOSS FOR THE YEAR (356,295) (301,971) (881,879)
OTHER COMPREHENSIVE INCOME
Exchange difference on consolidation (35,456) 1,973 (130,361)
OTHER COMPREHENSIVE INCOME / (LOSS) FOR THE PERIOD, NET OF INCOME TAX (35,456) 1,973 (130,361)
TOTAL COMPREHENSIVE LOSS FOR THE PERIOD (391,751) (299,998) (1,012,240)
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
FOR THE SIX MONTHS TO 30 JUNE 2022
(Unaudited) (Unaudited) (Audited)
6 Months to 6 Months to Year ended
30 June 2022 30 June 2021 31 Dec 2021
£ £ £
ASSETS
NON-CURRENT ASSETS
Intangible assets 5,640,968 5,362,049 5,403,066
Property, plant and equipment 4,948 7,330 5,856
Investments 120,284 - -
Loans and other financial assets 435,871 362,148 369,390
6,202,071 5,731,527 5,778,312
CURRENT ASSETS
Trade and other receivables 73,530 52,853 50,108
Cash and cash equivalents 762,300 975,820 872,000
835,830 1,028,673 922,108
TOTAL ASSETS 7,037,901 6,760,200 6,700,420
EQUITY
SHAREHOLDERS' EQUITY
Called up share capital 2,896,479 2,195,521 2,650,325
Share premium 18,358,858 17,075,316 17,853,012
Translation reserve (852,122) (684,332) (816,666)
Share scheme reserve 66,733 172,434 66,733
Retained earnings (13,579,600) (12,749,098) (13,223,305)
TOTAL EQUITY 6,890,348 6,009,841 6,530,099
LIABILITIES
CURRENT LIABILITIES
Trade and other payables 147,553 150,359 170,321
Borrowings - 600,000 -
TOTAL LIABILITIES 147,553 750,359 170,321
TOTAL EQUITY AND LIABILITIES 7,037,901 6,760,200 6,700,420
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 30 JUNE 2022
Called up Retained earnings Share Translation Share Scheme Reserve Total Equity
share premium Reserve
capital
£ £ £ £ £ £
Balance at 31 December 2020 2,146,862 (12,454,922) 16,908,975 (686,305) 180,229 6,094,839
Loss for the period - (301,971) - - - (301,971)
Other comprehensive income - - - 1,973 - 1,973
Share warrants granted / exercised - 7,795 - - (7,795) -
Issue of Share Capital 48,659 - 166,341 - - 215,000
Balance at 30 June 2021 2,195,521 (12,749,098) 17,075,316 (684,332) 172,434 6,009,841
Loss for the period - (579,908) - - - (579,908)
Other comprehensive income - - - (132,334) - (132,334)
Share warrants granted / exercised - 105,701 - - (105,701) -
Issue of Share Capital 454,804 - 777,696 - - 1,232,500
Balance at 31 December 2021 2,650,325 (13,223,305) 17,853,012 (816,666) 66,733 6,530,099
Loss for the period - (356,295) - - - (356,295)
Other comprehensive income - - - (35,456) - (35,456)
Issue of Share Capital 246,154 - 505,846 - - 752,000
Balance at 30 June 2022 2,896,479 (13,579,600) 18,358,858 (852,122) 66,733 6,890,348
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2022
(Unaudited) (Unaudited) (Audited)
6 Months to 6 Months to Year ended
30 June 2022 30 June 2021 31 Dec 2021
£ £ £
Cash flows from operating activities
Cash used in operations CF note 1 (458,199) (492,638) (1,043,308)
Net cash used in operating activities (458,199) (492,638) (1,043,308)
Cash flows from investing activities
Purchase of intangible fixed assets (262,283) (100,888) (284,916)
Purchase of investments in associates (120,284)
Interest received 243 - 94
Net cash used in investing activities (382,324) (100,888) (284,822)
Cash flows from financing activities
Proceeds of share issue 752,000 15,000 647,500
Issue of loans (20,683) - -
Net cash from financing activities 731,317 15,000 647,500
Decrease in cash and cash equivalents (109,206) (578,526) (680,630)
Cash and cash equivalents at beginning of period CF note 2 872,000 1,554,424 1,554,424
Effect of exchange rate changes (494) (78) (1,794)
Cash and cash equivalents at end of period CF note 2 762,300 975,820 872,000
NOTES TO THE CASH FLOW STATEMENT
FOR THE SIX MONTHS ENDED 30 JUNE 2021
1. RECONCILIATION OF LOSS BEFORE TAX TO CASH USED IN OPERATIONS
(Unaudited) (Unaudited) (Audited)
6 Months to 6 Months to Year ended
30 June 2022 30 June 2021 31 Dec 2021
£ £ £
Loss before tax (356,295) (301,971) (881,879)
Depreciation 103 103 1,942
Loss/(Gain) on foreign exchange movement (55,575) 1,454 (7,206)
Finance income (243) - (94)
Taxes paid - - 46
(412,010) (300,414) (887,191)
Increase in trade and other receivables (23,422) (30,861) (45,174)
Decrease in trade and other payables (22,767) (161,363) (110,943)
Cash used in operations (458,199) (492,638) (1,043,308)
2. CASH AND CASH EQUIVALENTS
The amounts disclosed on the cash flow statement in respect of cash and cash
equivalents are in respect of the statement of financial position amounts:
(Unaudited) (Unaudited) (Audited)
6 Months to 6 Months to Year ended
30 June 2022 30 June 2021 31 Dec 2021
£ £ £
Cash and cash equivalents 762,300 975,820 872,000
NOTES TO THE FINANCIAL STATEMENTS - UNAUDITED RESULTS
FOR THE SIX MONTHS ENDED 30 JUNE 2022
1. Basis of preparation
These interim financial statements for the six month period ended 30 June 2022
have been prepared using the historical cost convention, on a going concern
basis and in accordance with applicable UK adopted International Financial
Reporting Standards and IFRIC interpretations and with those parts of the
Companies Act 2006 applicable to reporting groups under IFRS. They have also
been prepared on a basis consistent with the accounting policies expected to
be applied for the year ending 31 December 2022, and which are also consistent
with the accounting policies applied for the year ended 31 December 2021
except for the adoption of any new standards and interpretations.
These interim results for the six months ended 30 June 2022 are unaudited and
do not constitute statutory accounts as defined in Section 434 of the
Companies Act 2006. The financial statements for the year ended 31 December
2021 have been delivered to the Registrar of Companies and filed at Companies
House and the auditors' report on those financial statements was unqualified
but contained an emphasis of matter in respect of a material uncertainty
relating to going concern. The auditors' report did not contain a statement
made under Section 498(2) or Section 498(3) of the Companies Act 2006.
2. Loss per share
Basic earnings per share is calculated by dividing the earnings attributable
to ordinary shareholders by the weighted average number of ordinary shares of
2,795,197,507 (30 June 2021: 2,180,298,841 and 31 December 2021:
2,257,793,111) outstanding during the period. There is no difference between
the basic and diluted loss per share.
3. Called up share capital
(Unaudited) (Unaudited) (Audited)
6 Months to 6 Months to Year ended
30 June 2022 30 June 2021 31 Dec 2021
Allotted, called up and fully paid
Ordinary shares of 0.1p each 2,896,479,558 2,195,521,479 2,650,325,712
The number of shares in issue was as follows:
Number of shares
Balance at 31 December 2020 2,146,862,217
Issued during the period 48,659,262
Balance at 30 June 2021 2,195,764,024
Issued during the period 454,804,233
Balance at 31 December 2021 2,650,325,712
Issued during the period 246,153,846
Balance at 30 June 2022 2,896,479,558
For further information please contact:
Oracle Power PLC +44 (0) 203 580 4314
Naheed Memon
Strand Hanson Limited (Nominated Adviser and Broker) +44 (0) 20 7409 3494
Rory Murphy, Rob Patrick
St Brides Partners Limited (Financial PR) +44 (0) 20 7236 1177
Susie Geliher, Catherine Leftley
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