REG - Oracle Power PLC - Interim Results
18/09/2024 07:00
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RNS Number : 5789E Oracle Power PLC 18 September 2024
18 September 2024
Oracle Power PLC
("Oracle", the "Company" or the "Group")
Unaudited Interim Results for the six months to 30 June 2024
Oracle Power PLC (AIM: ORCP), the international natural resources project
developer, announces its unaudited interim results for the six months ended
30 June 2024, which will also be made available on its website at:
www.oraclepower.co.uk.
HIGHLIGHTS
· Significant progress made on all projects
· Acquired 100% of the Blue Rock Valley Copper and Silver Project
· Improved operating and development efficiencies resulting in cost
reduction
· Additional equity capital raised despite prevailing market challenges
CHIEF EXECUTIVE OFFICER'S STATEMENT
In the first half of 2024, Oracle made significant progress across its
multi-project portfolio, which includes the Northern Zone Gold Project in
Western Australia ("WA"), the Blue Rock Valley Copper and Silver Project, and
a highly prospective Green Hydrogen and Renewable Power Project in southern
Pakistan along with its associated renewable power projects.
The Northern Zone Project in WA is being actively explored through a farm-in
agreement with Riversgold Ltd (ASX: RGL), while the Green Hydrogen and
Renewable Power Project is being developed through a joint venture with Kaheel
Energy FZE, wholly owned by His Highness Sheikh Ahmed Bin Dalmook Al
Maktoum.
Review of operations
Pakistan
Green Hydrogen and Renewable Power Project
During the first half of 2024, Oracle's flagship Green Hydrogen and Renewable
Power Project in Pakistan saw substantial advancements. In Q1 2024, the
Company completed a comprehensive technical and commercial feasibility study
for the proposed 1.3 GW hybrid renewable power facility. This facility,
integral to the green hydrogen production, is designed to include 800 MW of
solar, 500 MW of wind, and 450 MWh of battery storage.
Concurrently, Oracle commenced a geotechnical study on the 28.3 sq. km project
site, which was completed in Q2 2024. This study included an electrical
resistivity survey for the renewable power production facility aimed at
optimising site planning and infrastructure design. The findings from the
study provided valuable insights for water management and strongly endorsed
the planned construction of the hybrid power plants.
In Q2 2024, Oracle completed the Environmental and Social Impact Assessment
(ESIA) for the 1.3 GW renewable power plant, which was subsequently submitted
to the Sindh Environmental Protection Agency (SEPA) for review. Following
this, the Company received a "No Objection Certificate" (NOC) from SEPA,
giving permission for the construction of the proposed 1.3 GW renewable energy
power plant. This is a critical step in advancing the project, as it involved
assessing its environmental impacts based on the Initial Environmental
Examination (IEE) report, which was prepared in compliance with the guidelines
set forth in the Sindh Environmental Protection Act of 2014.
Additionally, the Directorate of Alternative Energy of the Government of Sindh
extended the validity period of our Letter of Intent for the development of
the 1.3 GW renewable energy power plant in Jhimpir, Sindh, to 23 January 2025.
Post-period end, we received the preliminary report for the Grid
Interconnection Study, funded and completed by State Grid China. This report
is currently under review by the National Transmission and Dispatch Company
(NTDC) and Power Planners International (PPI), with discussions underway to
refine and enhance the grid connection scheme. The final report is expected
soon.
Corporate developments in Q2 2024 further solidified Oracle's strategic
partnerships, with advanced discussions initiated with Pakistan Petroleum
Limited (PPL) and other state-owned companies regarding potential equity
investments and joint development opportunities in the Project. These
discussions reflect the increasing strategic importance of green hydrogen in
the region.
Thar Block VI
In the first half of 2024, the strategic value of our Thar Block VI project
grew significantly due to Pakistan's focus on utilising local coal to address
energy challenges. The government has prioritised replacing imported coal with
Thar's indigenous supply, recognising it as vital for resolving the energy
crisis and reducing reliance on expensive imports. This shift in policy
supports our ongoing discussions with potential investors to advance the 1.32
GW coal-to-power plant under the Offtake MOU with the Government of Sindh,
K-Electric, and PowerChina International.
In June 2024, a high-level meeting led by the Prime Minister emphasised
developing a comprehensive strategy for coal gasification projects in Thar,
reinforcing the importance of local coal in the national energy mix. The
ongoing interest in coal-to-gas (CTG) and coal-to-liquid (CTL) technologies
further underscores Thar Block VI's potential within Pakistan's energy
strategy.
Australia
Northern Zone Gold Project
Oracle's Northern Zone Gold Project in WA continued to show promise throughout
the first half of 2024. In Q1 2024, our farm-in partner, Riversgold Ltd (ASX:
RGL), confirmed that it had invested A$333,000 in exploratory activities. This
led to the approval of a Programme of Work by Australia's Department of
Energy, Mines, Industry Regulation and Safety, with drilling commencing in May
2024.
As drilling progressed into Q2 2024, both reverse circulation (RC) and air
core (AC) drilling programmes were conducted with two contracted rigs. The
goal was to test for supergene gold and conduct step-out drilling to support
the estimation of a maiden JORC compliant gold resource.
The completed drilling programme comprised:
· RC drilling with six holes totalling 1,363 meters and 1,100 samples
collected.
· AC drilling with 27 holes totalling 1,772 meters and 662 samples
collected.
The AC drilling programme successfully expanded the mineralised porphyry,
doubling the prospective gold system's footprint. The exploration target for
the project is estimated at 2.5Moz to 4.8Moz of gold.
RC drilling confirmed high-grade gold intercepts, indicating significant
mineralisation at various depths. Drilling resumed post-period end in late
July 2024 targeting the shallower portion of the mineralised system and an
identified fault believed to be a controlling feature of mineralisation. The
planned 1,500 meters of drilling was completed post-period, further enhancing
the project's potential.
Blue Rock Valley Copper and Silver Project
In Q2 2024, Oracle completed the acquisition of a 100% interest in the Blue
Rock Valley Copper and Silver Project, also located in Western Australia.
Initial on-site assessments by our consultant geologists have confirmed
high-grade copper and silver mineralisation as well as the potential for
uranium.
Consultant geologists conducted on-site assessments to explore the potential
for copper, lead, zinc, and silver deposits. High-grade copper samples, with
grades ranging from 8.56% to 25.70%, were recovered during a recent site
visit, underscoring the project's potential.
Looking ahead, Oracle plans to refine its exploration techniques, including
ground gravity and EM surveys, with drilling expected to commence when
conditions are viable. The Company is also considering additional targeting
tools to further refine and develop exploration targets, setting the stage for
future discoveries.
Board changes
In July 2024, we were pleased to welcome a new non-executive director - Emma
Priestley - to the board. Emma brings over 20 years of experience in the
mining and financial services sectors and will be a valuable addition to the
Board.
In August 2024, Mark Steed, our former Non-Executive Chairman, stepped down
from the Board. We wish to thank Mark for his valuable service to the Company
over a number of years and wish him all the best for the future.
David Hutchins, currently serving as a Non-Executive Director, will assume the
role of Non-Executive Chairman with immediate effect.
Financial
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 2024 show the Group made a loss after taxation of £264,942
(6 months ended 30 June 2023: £613,773). However, the loss for this period
has been significantly reduced compared to the previous period.
As at 30 June 2024, the Group had cash and cash equivalents of £528,464 (30
June 2023: £326,946) and net assets of £6,649,885 (30 June 2022:
£6,117,113).
Currently, the Company does not generate any revenue and is therefore
dependent on raising new funds to finance the development of its various
projects. Despite the challenging market conditions at present, in May 2024,
the Company raised £300,000 before expenses, demonstrating its ongoing
ability to secure funding and the confidence investors have in the Company's
future.
Outlook
During this period, we made significant strides in developing our project
portfolio and expanded our footprint in Western Australia, where we have had
success in forming partnerships to assist in ongoing developments.
Additionally, we enhanced our Green Hydrogen and Renewable Power Project by
carving out standalone, lucrative renewable power projects, making substantial
progress in this area.
We remain committed to finding profitable and timely exit opportunities for
our projects, while continuing to de-risk and add value along their
development pathways.
Naheed Memon
Chief Executive Officer - Oracle Power PLC
CONSOLIDATED INCOME STATEMENT
FOR THE SIX MONTHS TO 30 JUNE 2024
(Unaudited) (Unaudited) (Audited)
6 Months to 6 Months to Year ended
30 June 2024 30 June 2023 31 Dec 2023
CONTINUING OPERATIONS £ £ £
Revenue - - -
Administrative expenses (278,700) (621,197) (848,058)
OPERATING LOSS (278,700) (621,197) (848,058)
Other income - - 26,697
Finance costs - - -
Finance income 11,901 7,424 36,688
Amounts written off and p/l on disposals 1,857 - (5,122)
LOSS BEFORE INCOME TAX (264,942) (613,773) (789,795)
Income tax - - -
LOSS FOR THE PERIOD (264,942) (613,773) (789,795)
Earnings per share expressed in pence per share:
Basic (0.01) (0.02) (0.02)
Diluted (0.01) (0.02) (0.02)
STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS TO 30 JUNE 2024
(Unaudited) (Unaudited) (Audited)
6 Months to 6 Months to Year ended
30 June 2024 30 June 2023 31 Dec 2023
£ £ £
LOSS FOR THE YEAR (264,942) (613,773) (789,795)
ITEMS THAT WILL OR MAY BE RECLASSIFIED TO PROFIT OR LOSS:
Exchange gains arising on translation on foreign operations 89,570 (331,076) (317,429)
OTHER COMPREHENSIVE LOSS FOR THE PERIOD, NET OF INCOME TAX 89,570 (331,076) (317,429)
TOTAL COMPREHENSIVE LOSS FOR THE PERIOD (175,372) (944,849) (1,107,224)
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
FOR THE SIX MONTHS TO 30 JUNE 2024
(Unaudited) (Unaudited) (Audited)
6 Months to 6 Months to Year ended
30 June 2024 30 June 2023 31 Dec 2023
£ £ £
ASSETS
NON-CURRENT ASSETS
Intangible assets 5,129,760 4,688,947 4,759,055
Property, plant and equipment 1,949 2,615 2,202
Investments in equity accounted associates 733,963 667,337 732,106
Loans and other financial assets 374,774 619,773 719,024
6,240,446 5,978,672 6,212,387
CURRENT ASSETS
Trade and other receivables 30,209 39,427 46,909
Cash and cash equivalents 528,464 326,946 203,526
558,673 366,373 250,435
TOTAL ASSETS 6,799,119 6,345,045 6,462,822
EQUITY
SHAREHOLDERS' EQUITY
Called up share capital 3,772,584 3,695,415 3,745,415
Share premium 19,591,493 18,807,922 19,109,662
Translation reserve (1,222,984) (1,326,201) (1,312,554)
Share scheme reserve 9,759 67,896 9,759
Retained earnings (15,500,967) (15,127,899) (15,236,025)
TOTAL EQUITY 6,649,885 6,117,133 6,316,257
LIABILITIES
CURRENT LIABILITIES
Trade and other payables 149,234 227,912 146,565
Borrowings - - -
TOTAL LIABILITIES 149,234 227,912 146,565
TOTAL EQUITY AND LIABILITIES 6,799,119 6,345,045 6,462,822
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 30 JUNE 2024
Called up Retained earnings Share Translation Share Scheme Reserve Total Equity
share premium Reserve
capital
£ £ £ £ £ £
Balance at 31 December 2022 3,078,297 (14,504,409) 18,632,040 (995,125) 58,179 6,268,982
Loss for the period - (613,773) - - - (613,773)
Other comprehensive income - - - (331,076) - (331,076)
Share warrants granted - (9,717) 9,717 -
Issue of Share Capital 617,118 - 175,882 - - 793,000
Balance at 30 June 2023 3,695,415 (15,127,899) 18,807,922 (1,326,201) 67,896 6,117,133
Loss for the period - (108,126) - - - (108,126)
Other comprehensive income - - - 13,647 - 13,647
Share warrants expired - - - - (58,137) (58,137)
Issue of Share Capital 50,000 - 301,740 - - 351,740
Balance at 31 December 2023 3,745,415 (15,236,025) 19,109,662 (1,312,554) 9,759 6,316,257
Loss for the period - (264,942) - - - (264,942)
Other comprehensive income - - - 89,570 - 89,570
Issue of Share Capital 27,169 - 481,831 - - 509,000
Balance at 30 June 2024 3,772,584 (15,500,967) 19,591,493 (1,222,984) 9,759 6,649,885
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2023
(Unaudited) (Unaudited) (Audited)
6 Months to 6 Months to Year ended
30 June 2024 30 June 2023 31 Dec 2023
£ £ £
Cash flows from operating activities
Cash used in operations CF note 1 (258,782) (388,338) (765,398)
Net cash used in operating activities (258,782) (388,338) (765,398)
Cash flows from investing activities
Purchase of intangible fixed assets (44,750) (39,199) (99,560)
Disposal of financial fixed assets 410,979 - -
Purchase of investments in associates - - (68,446)
Issue of loans (62,550) (193,747) (167,483)
Interest received 860 7,424 2,242
Net cash used in investing activities 304,539 (225,522) (333,247)
Cash flows from financing activities
Proceeds of share issue 300,001 793,000 1,213,000
Share issue costs (21,000) - (58,500)
Net cash from financing activities 279,001 793,000 1,154,500
Increase / (decrease) in cash and cash equivalents 324,758 179,140 55,855
Cash and cash equivalents at beginning of period CF note 2 203,644 150,905 150,905
Effect of exchange rate changes 62 (3,099) (3,234)
Cash and cash equivalents at end of period CF note 2 528,464 326,946 203,526
NOTES TO THE CASH FLOW STATEMENT
FOR THE SIX MONTHS ENDED 30 JUNE 2024
1. RECONCILIATION OF LOSS BEFORE TAX TO CASH USED IN OPERATIONS
(Unaudited) (Unaudited) (Audited) Year ended 31 Dec 2023
6 months to 30 June 2024 6 months to 30 June 2023
£ £ £
Loss before tax (264,942) (613,773) (789,795)
Depreciation 69 103 205
Impairment loss on intangible assets - 17,224 18,516
Impairment loss on loans to associates 10,966 145,230 28,415
Loss/(Gain) on foreign exchange movement (10,485) 41,782 67,135
Finance income (11,901) (7,424) (36,688)
Share of loss from associate undertaking (1,857) 1,444 5,122
Gain on disposal of subsidiary undertaking - - -
(278,150) (415,414) (707,090)
Increase in trade and other receivables 16,700 (18,340) (1,840)
Increase / (decrease) in trade and other payables 2,668 45,416 (56,468)
Cash used in operations (258,782) (388,338) (765,398)
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 2024 30 June 2023 31 Dec 2023
£ £ £
Cash and cash equivalents 528,464 326,946 203,525
NOTES TO THE FINANCIAL STATEMENTS - UNAUDITED RESULTS
FOR THE SIX MONTHS ENDED 30 JUNE 2024
1. Basis of preparation
These unaudited interim financial statements for the six-month period ended 30
June 2024 have been prepared using the historical cost convention, on a going
concern basis and in accordance with applicable UK adopted International
Financial Reporting Standards (IFRS) and International Financial Reporting
Interpretations Committee (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 2024, and which are also consistent
with the accounting policies applied for the year ended 31 December 2023
except for the adoption of any new standards and interpretations.
These unaudited interim results for the six months ended 30 June 2024 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 2023 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
5,273,575,857 (30 June 2023: 3,311,808,627 and 31 December 2023:
3,696,910,701) 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 2024 30 June 2023 31 Dec 2023
Allotted, called up and fully paid
Ordinary shares of 0.1p each 7,452,310,364 3,735,415,387 4,735,415,387
The number of shares in issue was as follows:
Number of shares
Balance at 31 December 2022 3,078,297,740
Issued during the period 657,117,647
Balance at 30 June 2023 3,735,415,387
Issued during the period 1,000,000,000
Balance at 31 December 2023 4,735,415,387
Issued during the period 2,716,894,977
Balance at 30 June 2024 7,452,310,364
At 30 June 2024, there were 2,280,211,373 warrants outstanding (31 December
2023: 613,544,706; 30 June 2023: 283,544,706).
For further information visit www.oraclepower.co.uk
(http://www.oraclepower.co.uk) or 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, Matthew Chandler, Rob Patrick
St Brides Partners Limited (Financial PR) oracle@stbridespartners.co.uk
Isabel de Salis, Susie Geliher
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