REG - Oriole Resources PLC - Interim Results
29/09/2023 07:00
For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230929:nRSc0737Oa&default-theme=true
RNS Number : 0737O Oriole Resources PLC 29 September 2023
Oriole Resources PLC
('Oriole Resources', 'the Company' or 'the 'Group')
Interim Results for the six-month period ended 30 June 2023
Oriole Resources (AIM:ORR), the AIM-quoted exploration company focussed on
West Africa, announces its unaudited Interim Results for the six-month period
ended 30 June 2023 (the 'Period').
Operational Highlights:
· Bibemi gold project ('Bibemi'), Cameroon - following the delivery of
Cameroon's first JORC-compliant gold resource in December 2022, a ground-based
geophysics programme was completed over all four prospects to aid further
drill targeting with a view to resource expansion. During the period,
local-level technical studies also continued to support the conversion of the
exploration licence to an exploitation licence in 2024. Discussions are
ongoing with potential development partners to enable expedited
resource-expansion activities and exploitation at Bibemi;
· Central Licence Package ('CLP'), Cameroon - work has continued to
focus on the five eastern licences ('Eastern CLP'), with follow-up exploration
at the Mbe prospect ('Mbe') delivering up to 134.10 grammes per tonne ('g/t')
gold ('Au') from selective rock-chip samples and best pilot trenching
intervals of 2.20 metres ('m') grading 8.47 g/t Au and 5.00m grading 2.03 g/t
Au. A ground-based geophysics programme was completed during the period to
support a maiden drilling programme during the next field season;
· Wapouzé licence ('Wapouzé'), Cameroon - following the
identification of extensive limestone and marble outcrops, which may provide
suitable feed material for the £700 million Cameroonian cement industry that
is largely reliant on imported raw materials, the Company applied for a change
of commodity for the Wapouzé licence. This has been approved by the
Ministry of Mines and the Company is currently awaiting confirmation of the
renewal of the licence. Once this is approved, the Group will look to secure
an industrial minerals partner to develop the Wapouzé project through to
exploitation on an expedited basis;
· Senala gold project ('Senala'), Senegal - in April 2023, Managem
Group ('Managem') acquired IAMGOLD Corporation's ('IAMGOLD') controlling
interest in Senala and has confirmed its intention to continue the earn-in for
up to a maximum 70% interest in return for a total USD$8 million spend, to be
completed on or before 28 February 2024. A 2,000m diamond drilling programme
is expected to commence at the Faré prospect later in 2023;
Financial Highlights:
· The Group's pre-tax loss for the six months to 30 June 2023 was
£0.86 million (2022: loss of £0.39 million), the increase being attributed
to an adverse, non-cash foreign exchange loss on overseas assets;
· Administrative expenses decreased to £0.52 million (2022: £0.58
million) mainly due to a reduction in Directors' salaries;
· Exploration expenditure of £0.22 million in Cameroon, mainly related
to geophysics programmes (at certain targets within the Bibemi and the Eastern
CLP project), mapping and rock-chip sampling in the Eastern CLP licences and
reconnaissance work on the lithium targets at Ndom and Gamboukou licences;
· During the period, the Directors have supported the Company's cash
position by way of a £0.20 million subscription for shares by Eileen Carr and
£0.05 million of gross salary sacrificed by the Board as a whole;
· The cash balance of the Group as at 30 June 2023 was £0.19 million.
Post period events
· Subsequent to the period end, the Company completed a simultaneous
placing and sharing agreement with Lanstead Capital Investors L.P ('Lanstead')
in respect of 930 million 0.1p ordinary shares in the Company ('the Lanstead
Agreement'). This agreement will see funds coming to the Company on a monthly
basis over the next two years, with the quantum of those funds dependent upon
the prevailing share price (announcement dated 1 August 2023). The first
payment, of £0.03 million, under the Lanstead Agreement has been received
during September;
· As announced on 11 April 2023, the Company has engaged a Canadian
investment banking firm to secure US$1 million of project-level exploration
financing in return for a 10% non-carried interest in the Company's 90%
shareholding in the Eastern CLP. The financing was initially scheduled for
completion in Q2-2023 but the Company has been advised that, whilst
discussions on the funding continue, this process will now extend into
Q4-2023. The Company continues to engage with several other groups regarding
project-level investment at the Eastern CLP and is conducting site visits in
October with interested parties.
Eileen Carr, Chair of Oriole, said: "The first half of 2023 has seen a
continuation of our exploration efforts in Cameroon, where we were able to
execute our H1-2023 exploration programme as planned. The results from this
work will allow us to optimise drill targets for the forthcoming dry season.
"At Bibemi, our widest intersection to date of 14.80m grading 4.26 g/t Au,
confirmed our geological model at the Bakassi Zone 1 prospect and enabled the
delivery of a maiden resource there late last year. In the anticipation of
additional resources in the area, work has begun on the application process to
convert the current exploration licence to an exploitation licence, and
alongside this the Board is advancing its discussions with interested
development partners.
"Meanwhile, at the Eastern CLP project, our successful soil sampling, mapping
and rock chipping programmes have attracted some small-scale artisanal
activity that has exposed orogenic gold veins. Samples from these workings
confirmed our expectation of significant mineralisation within both the veins
and the host rocks. Discussions continue with a number of interested parties
who share our view of the potential of the licence package.
"We are also pleased to report that the application for the change of
commodity for our Wapouzé Licence, to the north of Bibemi, to that of
limestone has been approved. We are now awaiting licence renewal and once we
have received the formal notification of that renewal, we will progress our
search for an industry partner on this asset. This change shows our ability to
assess our assets quickly and ensure that each project can generate value for
stakeholders by identifying alternative potential revenue streams.
"In Senegal, we continue to be updated on the ongoing exploration at the
Senala licence by our new partners, Managem. We anticipate the completion of a
2,000m diamond drill programme on the Faré prospect later this year, which
will see Managem near the end of its six-year Option Period, being February
2024. By this date, in order to attain a maximum 70% position in the licence,
Managem must spend or pay to Oriole the balance of the initial US$8 million
earn-in amount.
"Life for the junior miner has continued to be difficult, and since the period
end, we have entered an agreement with Lanstead whereby they have acquired a
26.23% interest in the Company in exchange for a financing arrangement that
will provide a monthly income to the Company for the next two years. It is
the Board's belief that news-flow over the coming months, and progress with
its active strategy of securing project-level funding on our projects in
Cameroon, will be supportive of an increasing share price that will see the
Lanstead transaction increase in value."
Interim Management Report
The first six months of 2023 coincided with the second half of the 2022/23
exploration field season in Cameroon, as the rainy season covers the period
July to September. The work so far in 2023 has been preparatory in nature,
undertaking technical studies at Bibemi to support the application for an
exploitation licence in 2024, and working towards drill hole targeting at the
Mbe prospect within the earlier-stage Eastern CLP package. The rock and
channel chip sampling that has been completed at Mbe demonstrates the
potential for that licence to deliver a new gold project. Evidence from the
recent artisanal activity would also seem to support our confidence in the
prospectivity of the area. The Board believes this potential will be
replicated across the remainder of the Eastern CLP as follow-up of regional
exploration results continues to test the gold corridor.
At Bibemi, the maiden JORC-Resource announced late last year (announcement
dated 12 December 2022) provides the foundation for defining Cameroon's gold
endowment and has just scratched the surface in terms of the potential at
Bibemi and indeed the rest of Cameroon.
In Senegal, where the Company continues to be free-carried, IAMGOLD
Corporation completed the sale of its West African assets, including its
controlling interest in the Senala project, to Morocco-based Managem Group
('Managem', announcement dated 16 May 2023). Managem is continuing with the
earn-in, which is due to conclude in February 2024, and has planned a 2,000m
diamond drilling programme at the resource-stage Faré prospect. The sale of
nearby Chesser Resources for A$89 million illustrates the potential value of
Oriole's remaining interest in Senala, notwithstanding the fact that Managem
could earn up to a maximum 70% ownership position during the earn-in period by
completion of US$8 million exploration spend, or payment to Oriole in cash of
any shortfall on this amount.
Funding
The start of 2023 has been dominated by efforts to bring funding into the
Company without an equity raise, either by legacy asset disposal or by
project-level funding initiatives. Progress has been frustratingly slow on
both fronts. The initiative to bring funding in for the Eastern CLP project,
with a Canadian Investment Bank looking to raise US$1 million for a 10%
non-carried interest (announcement dated 11 April 2023) is still live and
confirmation of this is awaited, which is now expected to be later this year.
The Company continues to engage with several groups regarding project level
investment at the Eastern CLP and is conducting site visits in October with a
number of interested parties.
The Board has been developing its plans to move Bibemi towards the application
for an exploitation licence, which is scheduled for submission in H1 of
2024. The Board also continues to engage with groups that have expressed an
interest in the early-stage lithium anomalism discovered within the Central
Licence Package.
Efforts to realise value from the legacy assets continue but, in all cases,
progress is outside of the Company's control. The Turkish courts continue to
frustrate us, both in terms of enforcing the Group's legal rights against
errant debtors, and in moving the Environmental Impact Assessment forward at
Muratdere. The Board also awaits confirmation on Elephant Oil Inc's
long-awaited listing on NASDAQ, which will make the Company's shareholding a
realisable asset. Whilst the listing is in progress, there can be no certainty
of the value of the resultant investment balance. However, the Board's view is
that the value upon listing will be circa US$0.20 million. This has been a
long and frustrating process and is illustrative of the funding issues facing
the junior resource sector currently.
With the project-level funding strategy active but taking longer to secure
than anticipated, and slow progress on asset realisation, the Board has
supported the Company's cash position through direct investment, as well as
ongoing salary sacrifice schemes. However, as the delays mentioned above
continued, it became clear that equity funding would be required and, after
consultation with the Company's advisors, the Board elected to enter into a
placing agreement with Lanstead Capital Investors L.P. ('Lanstead') in July of
this year (the 'Lanstead Agreement', announcement dated 1 August 2023).
Unlike a standard placing, the Lanstead Agreement will provide Oriole with
funding over a two-year period, with the amount received each month being
subject to the prevailing share price each month, without the total number of
shares being affected. Whilst currently the share price is below the reference
point of the deal, the Board anticipates that the progress which can be made
over the coming months will act as a driver for a sustained higher share
price, which will provide incrementally higher funds over the full term of the
Lanstead Agreement. The Board notes concerns that Lanstead will periodically
sell down shares; however, whilst Lanstead is entitled to do so, this must be
balanced against the fact that continued worries about the 'next placing' has
held the share price back for a number of years. The Board's focus is to
deliver the news that will push the share price higher and more accurately
reflect the underlying value of the assets. Doing this will drive the monthly
proceeds higher, providing the Company with funding for the Group's
operational costs alongside any project-level funding that can be secured. The
first payment, of £0.03 million, under the Lanstead Agreement has been
received during September.
Central Licence Package (CLP)
A key focus for the Company is to undertake a maiden drill programme at the
Mbe licence, one of five licences within the Eastern CLP gold project, within
the broader CLP district. Rock chip samples of up to 134.10 g/t Au
(announcement dated 30 January 2023) and best channel samples including 8.47
g/t Au over 2.20m (announcement dated 21 June 2023) illustrate the potential
for significant success at Mbe and for further gold discoveries within the
Eastern CLP. A ground-based geophysics programme was completed during the
period to assist with drill targeting over the main anomaly at Mbe and work is
underway to secure the services of a drill rig, subject to the availability of
funding. The 12.5 km-long anomaly at Mbe has been a high-priority target ever
since it was delineated, but there are multiple targets awaiting follow up
within the Eastern CLP throughout the extensive 'gold corridor' identified by
exploration work to date. The nature of exploration is to gather data, assess
results and then decide upon the next course of action and so these will all
be systematically explored in due course. In the meantime, a successful drill
programme at Mbe will confirm the vertical extension of the systems mapped at
surface and potentially open opportunities for the Group to bring in more
project-level funding at an enhanced valuation.
Figure 1: Simplified summary of the prospective areas across the CLP. Lithium
anomalism identified to date is located in the southeastern corner of Ndom,
with the Gamboukou, and Maboum licences also having been identified as having
highly-prospective geology.
The routine collection of multi-element data also identified lithium anomalism
in stream and soil samples taken over the Ndom licence (part of the Eastern
CLP), and prompted the Group to secure the adjacent Gamboukou licence, which
appears to cover the same prospective host rocks. More work is needed to prove
up the lithium potential at both licences, and an investment partner is being
sought to help take this forward.
The three licences that comprise the Western CLP, immediately to the west of
the Eastern CLP, are so far unexplored, and have been voluntarily suspended
with the approval of the Cameroonian Ministry, pending resolution of access
issues related to an over-lapping hunting concession. The Board believes that
these concerns can be resolved but welcomes the move by the Ministry of Mines
to freeze the positions, taxes and commitments pending that resolution.
Bibemi
With the announcement of a maiden JORC resource (announcement dated 20
December 2022), the Company is undertaking the necessary steps, including
local-level technical studies, to convert Bibemi's exploration licence to an
exploitation licence during 2024. The Board believes that the maiden JORC
inferred resource of 305,000 ounces ('oz') Au at 2.19g/t, can be added to
significantly, through a targeted resource-expansion drilling programme at
Bakassi Zone 1. In addition, drill-based resource delineation at the three
other prospects on the licence, including at Lawa East where the most recent
phase of drilling returned 3.00m grading 12.30 g/t Au from 58.00m down hole
(announcement dated 15 September 2022), is planned.
A ground-based geophysics programme was completed during the period to assist
with drill targeting over all four prospects.
An accelerated exploitation plan for Bibemi, whilst at the same time
maximising the potential for resource-expansion, is a key focus for the
Company and discussions continue with interested development groups.
Wapouzé
Following a review of the historical data in 2022-2023, it was determined that
gold prospectivity at Wapouzé was lower than that at the Group's nearby
Bibemi project. However, it was highlighted that there was the potential for
cement-quality limestone within the licence area.
The Company submitted a formal request for a change of substance at the
Wapouzé licence area from gold to industrial minerals. This has been approved
by the Ministry of Mines and the Company is awaiting confirmation of the
renewal of the licence. Once this renewal is approved, the Company will look
to secure an industrial minerals partner to develop the Wapouzé project
through to exploitation on an expedited basis.
Senala
The acquisition of IAMGOLD's West African portfolio by Managem, including its
controlling interest in the Senala project in Senegal, was completed during
the period. Managem has confirmed its intention to continue with the earn-in,
which is in its sixth and final year and gives Managem the right to earn up to
a maximum 70% interest in Senala by completing an US$8 million spend by the
end of February 2024, or payment to Oriole of the outstanding balance in cash.
The 2023 work programme is expected to commence later this year, with 2,000m
of drilling planned to further test the resource-stage Faré prospect.
Expenditure to date has been approximately US$5.6 million.
Senegal remains a hot spot for merger and acquisition activity, with the
previously mentioned sale of Chesser Resources to Fortuna Silver for A$89
million during the period being the latest in a series of corporate
transactions in this gold hot spot. As such, the Senala licence remains of
interest to several exploration and mining companies with activities in the
area and continues to be a valuable asset to the Group.
Legacy Assets
At the Muratdere copper-gold porphyry project ('Muratdere') in Turkey, the
Company has a 1.2% royalty interest. As reported in the 2022 Annual Report the
Muratdere Environmental Impact Assessment ('EIA') was approved in August 2022.
However, further news on potential mine development is pending the outcome of
a local appeal that is still ongoing. The project's initial mine plan covered
16 million tonnes (of a total 51 million tonne resource) and, once in
production, is expected to deliver 68,000 tonnes of copper, and a significant
multi-year royalty for the Group. The Company regularly updates royalty groups
that have expressed an interest in acquiring the royalty, and as a resolution
to the legal challenge to the EIA moves ever closer, the Board is confident
that there will be ready buyers for this asset.
The wider portfolio of receivables in Turkey totals approximately US$1.7
million and, whilst progress towards realisation has been frustratingly slow,
the Board remains confident that substantial value will eventually be
recovered.
In East Africa, the Company continues to monitor its investment in Thani
Stratex Djibouti ('TSD'). The drilling programmes at all projects in Djibouti
have been delayed due to ongoing licence renewal discussions. The Company
currently has an 8.03% interest in TSD's assets.
Results
The Group has posted a loss before tax for the Period of £0.86 million (2022:
loss of £0.39 million). A significant component of this increased loss is the
unrealised exchange movement on the Senala asset, which is denominated in
Euros. A loss of £0.20 million in 2023 compares to a gain of £0.17 million
in the comparative period, giving an adverse foreign exchange swing of £0.37
million, which accounts for the majority of the increase in operating loss.
At the administrative expenses level, costs decreased from £0.58 million to
£0.52 million, reflecting ongoing salary sacrifice initiatives, whereby
salary is converted to equity interests in the Company, and other reductions.
£0.05 million (2022: £0.00) of the 2023 administrative expenses comprises a
non-cash share-based payment amount, reflecting the accounting treatment for
share options issued under salary sacrifice arrangements.
The Company received another research and development tax credit during the
Period, this time for £0.16 million. The Board is monitoring proposed changes
to the research and development tax credit scheme and believes that some
support will continue for the activities of the Group. As a result of this tax
credit, the Group reports a loss after tax of £0.71 million (2022: profit of
£0.01 million).
At 30 June, the Company had £0.19 million in cash and has, since the period
end, completed the Lanstead Agreement, which will provide funds over the next
two years, on a monthly basis commencing in September. Prior to that, the
Company's Chair, Eileen Carr, had made an investment of £0.20 million into
the equity of the Company.
Additionally, over the period, and since the period-end, the Directors have
continued to invest and increase their own personal stake in the Company via a
salary sacrifice scheme, moving the scheme from the issue of shares to share
options, which is more tax efficient for the Company.
Drivers for Growth
The early-stage results in the Eastern CLP have been excellent and confirm the
Board's faith that this region has the potential to be a new gold district.
Maiden drilling at the Eastern CLP project is the Company's top priority and
the Board continues to anticipate funding coming in at project level to allow
drilling at the Mbe prospect. The Board believes that confirmation of funding
will be a significant driver of growth in the share price, and the management
team continues to review all potential routes for project financing.
As previously mentioned, securing a joint-venture partner for Bibemi is under
active consideration and the Board believes that the path to moving the
project towards an exploitation licence, and a potential 1 million ounce gold
resource, is achievable within the near-term, with the right partner.
We remain in discussions with several groups who have expressed interest in
the development opportunity at Bibemi, the opportunity to participate in
project level funding in the Eastern CLP package and in the possibility of a
future sale of the Senala asset.
Work will also commence shortly on securing an industry partner for our
Wapouzé Licence, located to the north of Bibemi, where commercial-grade
limestone has been identified.
At the Senala licence in Senegal, the Board looks forward to Managem
recommencing work on this highly-prospective asset, following its recent
acquisition of IAMGOLD's interest during a wider West Africa-focussed
transaction. Drilling scheduled for Q4-2023 will further advance the Faré
target and the Board looks forward to receiving those results in due course.
The earn-in by Managem is scheduled to complete in February 2024, which will
give clarity on the Company's residual ownership position and may well provide
a significant liquidity event opportunity.
Another driver of value that the Board remains focussed on and determined to
realise value from are the Group's legacy assets. However, uniformly these
legacy assets are currently in non-producing development projects and, as
such, the list of potential buyers is limited. As these projects progress,
such as Muratdere with its EIA process, that list will expand and the
potential for their sale will increase.
The Board's priority is to turn these numerous potential drivers for positive
news into share price growth, which will in turn improve the level of funding
yielded from the Lanstead Agreement.
The Board continues to believe the asset base of the Company is much stronger
than the market capitalisation may suggest, and therefore continues to invest
into the business.
Tim Livesey
Chief Executive Officer
On behalf of the Board
28 September 2023
Condensed Consolidated Interim Financial Statements
Statement of Consolidated Comprehensive Income
Notes 6 months to 6 months to
30 June 2023 30 June 2022
Unaudited Unaudited
£'000 £'000
Continuing operations
Revenue - -
Administration expenses (523) (583)
Other (losses)/gains (340) 191
Loss before income tax (863) (392)
Income tax credit 157 403
(Loss)/profit for the period (706) 11
Other comprehensive income:
Items that may be reclassified subsequently to profit or loss:
Exchange differences on translation of foreign operations 70 15
Items that will not be reclassified subsequently to profit or loss
Change in fair value of other financial assets - 48
Other comprehensive income net of tax 70 63
Total comprehensive (loss)/income for the period (636) 74
(Loss)/profit for the period attributable to:
Owners of the Parent Company (697) (4)
Non-controlling interest (9) 15
(Loss)/profit for the period (706) 11
Total comprehensive income attributable to:
Owners of the Parent Company (593) 65
Non-controlling interest (43) 9
Total comprehensive (loss)/ income for the period (636) 74
Loss per share - continuing operations:
Basic (pence) (0.03) (0.00)
8
Diluted (pence) (0.03) (0.00)
8
Statement of Consolidated Financial Position
At 30 June 2023
Notes 30 June 30 June 31 December 2022
2023 2022 Audited
Unaudited Unaudited £'000
£'000 £'000
ASSETS
Non-current assets
Property, plant and equipment 20 38 33
Intangible assets 4 10,591 10,182 10,559
Investments in equity-accounted associates 5 - 1,449 -
Other financial assets 6 812 836 835
11,423 12,505 11,427
Current assets
Trade and other receivables 128 65 196
Cash and cash equivalents 190 432 507
318 497 703
Total assets 11,741 13,002 12,130
EQUITY
Capital and reserves attributable to owners of the Company
Ordinary share capital 7,056 6,200 6,929
Share premium 25,069 24,758 24,980
Other reserves 1,636 1,673 1,513
Retained earnings (21,962) (19,681) (21,299)
Total equity attributable to owners of the Company 11,799 12,950 12,123
Non-controlling interests (284) (279) (241)
Total equity 11,515 12,671 11,882
LIABILITIES
Current liabilities
Trade and other payables 226 331 248
Total liabilities 226 331 248
Total equity and liabilities 11,741 13,002 12,130
Statement of Consolidated Changes in Equity
For the 6 months ended 30 June 2023
Share Share Other Retained Total
Capital Premium Reserves Earnings equity
Total Non-controlling interests
£'000 £'000 £'000 £'000 £'000 £'000 £'000
As at 1 January 2023 6,929 24,980 1,513 (21,299) 12,123 (241) 11,882
Comprehensive income for the period:
- Loss for the period - - - (697) (697) (9) (706)
- Other comprehensive income - - 70 34 104 (34) 70
Total comprehensive income for the period - - 70 (663) (593) (43) (636)
Issue of share capital net of expenses 127 89 - - 216 - 216
Share based payments - - 53 - 53 - 53
Total contributions by and distributions to owners of the parent recognised 127 89 53 - 269 - 269
directly in equity
As at 30 June 2023 7,056 25,069 1,636 (21,962) 11,799 (284) 11,515
As at 1 January 2022 6,200 24,758 1,606 (19,838) 12,726 (133) 12,593
Comprehensive income for the period:
- Profit/(loss) for the period - - - (4) (4) 15 11
- Other comprehensive income - - 63 6 69 (6) 63
- Transfer between reserves - - - 155 155 (155) -
Total comprehensive income for the period - - 63 157 220 (146) 74
Share based payments - - 4 - 4 - 4
Total contributions by and distributions to owners of the parent recognised - - 4 - 4 - 4
directly in equity
As at 30 June 2022 6,200 24,758 1,673 (19,681) 12,950 (279) 12,671
Statement of Consolidated Cash Flows
6 months to 6 months to
30 June 2023 30 June 2022
Unaudited Unaudited
£'000 £'000
Cash flow from operating activities
Loss before income tax (863) (392)
Share based payments 53 4
Depreciation 3 11
Foreign exchange movements on operating activities 344 (129)
Changes in working capital:
Trade and other receivables 39 72
Trade and other payables (22) (236)
Net cash flow from operating activities (446) (670)
Cash flows from investing activities
Purchase of property, plant, and equipment - (1)
Purchase of intangible assets (note 4) (222) (661)
Tax received 157 403
Net cash flow from investing activities (65) (259)
Cash flows from financing activities
Net funds received from issue of shares 194 -
Net cash flow from financing activities 194 -
Net decrease in cash and cash equivalents (317) (929)
Cash and cash equivalents at beginning of the period 507 1,361
Cash and cash equivalents at end of the period 190 432
Notes to the consolidated interim financial statements for the six months
ended 30 June 2023
1. General Information
The principal activity of Oriole Resources PLC ('the Company') and its
subsidiaries (together, 'the Group') is the exploration for, and development
of, precious and high-value base metals. The Company's shares are quoted on
the AIM Market of the London Stock Exchange. The Company is incorporated and
domiciled in the UK.
The address of its registered office is Wessex House, Upper Market Street,
Eastleigh, Hampshire SO50 9FD.
2. Basis of preparation
The interim financial information set out above does not constitute statutory
accounts within the meaning of the Companies Act 2006. It has been prepared
on a going concern basis in accordance with the recognition and measurement
criteria of UK-adopted international financial standards. The accounting
policies applied in preparing the interim financial information are consistent
with those that have been adopted in the Group's 2022 audited financial
statements and are expected to be applied in the preparation of the 2023
financial statements. Statutory financial statements for the year ended 31
December 2022 were approved by the Board of Directors on 8 March 2023 and
delivered to the Registrar of Companies. The report of the auditors on those
financial statements was unqualified.
The Board of Directors approved this Interim Financial Report on 28 September
2023.
The condensed consolidated interim financial statements have been prepared on
a going concern basis. At the date of the financial statements the Directors
expect that the Group will require further funding to cover corporate
overheads and its operational plans in Cameroon. Operational expenditure
includes a significant discretionary component which the Directors may adjust
depending upon circumstances. The Directors are confident that the Group will
be able to raise further funds as required to meet these plans over the next
12 months, in cash, by asset disposals, debt funding or share issues.
There can be no assurance that the asset sales or other means of cash
generation will be successful and this may affect the Group's ability to carry
out its work programmes as expected.
Should the Group be unable to continue trading as a going concern, adjustments
would have to be made to reduce the value of the assets to their recoverable
amounts, to provide for further liabilities which might arise and to classify
non-current assets as current. The financial statements have been prepared on
the going concern basis and do not include the adjustments that would result
if the Group was unable to continue as a going concern.
Cyclicality
The interim results for the six months ended 30 June 2023 are not necessarily
indicative of the results to be expected for the full year ending 31 December
2023. Due to the nature of the entity, the operations are not affected by
seasonal variations at this stage.
Financial Risk Management
The key risks that could affect the Group's short and medium term performance
and the factors that mitigate those risks have not substantially changed from
those set out in the Group's 2022 Annual Report and Financial Statements, a
copy of which is available on the Company's website: www.orioleresources.com
(http://www.orioleresources.com) . The Group's key financial risks are the
availability of adequate funding and foreign exchange movements.
Accounting Policies
The condensed consolidated interim financial statements have not been audited,
nor have they been reviewed by the Company's auditors in accordance with the
International Standard on Review Engagements 2410 issued by the Auditing
Practices Board. The figures have been prepared using applicable accounting
policies and practices consistent with those adopted in the audited annual
financial statements for the year ended 31 December 2022.
Critical accounting estimates and judgements
The preparation of condensed consolidated interim financial statements
requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent assets and
liabilities at the end of the reporting period. Significant items subject to
such estimates are set out in note 4 of the Group's 2022 Annual Report and
Financial Statements. The nature and amounts of such estimates have not
changed significantly during the interim period. The Directors believe that
the overall value of these assets has been maintained during the period.
The condensed consolidated interim financial statements have been prepared
under the historical cost convention as modified by the measurement of certain
investments at fair value.
No dividends have been paid in the period (2022: £nil).
3. Operating Segments
Operating segments are reported in a manner which is consistent with internal
reports provided to the Chief Operating Decision Makers, identified as the
Executive Directors who are responsible for allocating resources and assessing
performance of the operating segments. The management structure reflects these
segments. The Group's exploration operations and investments are based in
three geographical areas, namely Turkey, East Africa and West Africa. The
Group's head office is located in the UK and provides corporate and support
services to the Group and researches new areas of exploration opportunities.
The allocation of profits, losses, assets and liabilities by operating segment
is as follows:
Loss for the period:
Turkey East Africa West Africa UK Total
£'000 £'000 £'000 £'000 £'000
6 months to 30 June 2023
Administrative costs (4) - (43) (474) (521)
Inter-segment charges - - (146) 146 -
Depreciation - - - (2) (2)
Exchange gains - - (344) - (344)
Other income/losses - - - 4 4
Loss before Income Tax (4) - (533) (326) (863)
6 months to 30 June 2022
Administrative costs (18) - (58) (505) (581)
Inter-segment charges - - (148) 148 -
Depreciation - - - (2) (2)
Exchange gains - - 172 - 172
Other income/losses 17 - - 2 19
Loss before Income Tax (1) - (34) (357) (392)
Assets and liabilities:
Turkey East Africa West Africa UK Total
£'000 £'000 £'000 £'000 £'000
30 June 2023
Intangible assets - - 10,591 - 10,591
Property, plant and equipment - - 13 7 20
Cash and other assets 22 812 85 211 1,130
Liabilities (1) - (70) (155) (226)
Inter-segment (2,247) - (3,374) 5,621 -
Net Assets (2,226) 812 7,245 5,684 11,515
30 June 2022
Intangible assets - - 10,182 - 10,182
Property, plant and equipment - - 29 9 38
Equity-accounted associates - 1,449 - - 1,449
Cash and other assets 24 836 219 254 1,333
Liabilities (2) - (58) (271) (331)
Inter-segment (2,951) - (2,298) 5,249 -
Net Assets (2,929) 2,285 8,074 5,241 12,671
Cash and other assets include cash and cash equivalents amounting to £190k at
30 June 2023 (2022: £432k).
4. Intangible assets
2023 2022
£'000 £'000
At 1 January 10,559 9,376
Exchange movements (190) 145
Additions 222 661
At 30 June 10,591 10,182
5. Investments in equity-accounted associates
2023 2022
£'000 £'000
At 1 January - 1,449
Share of losses and impairment provision - -
At 30 June - 1,449
Oriole's shareholding interest in Thani Stratex Resources Limited ('TSR') was
written off in the second half of 2022.
6. Other financial assets
2023 2022
£'000 £'000
Financial assets at fair value through other comprehensive income 395 395
Receivables at amortised cost 417 441
At 30 June 812 836
The Group holds an 8.03% investment in Thani Stratex Djibouti Limited ('TSD'),
and an associated loan note payable by TSD, valued at £417,000.
7. Related party transactions
Directors of the Company received total remuneration of £147k for the six
months ended 30 June 2023 (six months ended 30 June 2022 - £216k).
8. Earnings per share
The calculation of loss per share is based on the following:
2023 2022
Loss attributable to equity holders (£'000) (697) (4)
Weighted average number of shares basic 2,775,054,530 1,994,021,336
Earnings per share basic (pence) (0.03) (0.00)
Weighted average number of shares diluted 2,775,054,530 1,994,021,336
Loss per share diluted (pence) (0.03) (0.00)
9. Post balance sheet event
On 1 August 2023, the Company announced that it had completed, with Lanstead
Capital Investors LLP ('Lanstead'), a conditional subscription for 930,000,000
0.1 pence ordinary shares in the Company to raise £1.767 million, with the
proceeds pledged to a sharing agreement with Lanstead. The sharing agreement
provides for the proceeds of the placing to be released to the Company on a
monthly basis over a period of two years, with each monthly payment calculated
with reference to a benchmark price of 0.2533 pence. Immediately following
completion of the placing, Lanstead held a 26.23% interest in the share
capital of the Company.
Competent Persons Statement
The information in this release that relates to Exploration Results has been
compiled by Claire Bay (Executive Director, Exploration & Business
Development). Claire Bay (MGeol, CGeol) is a Competent Person as defined in
the JORC code and takes responsibility for the release of this information.
Claire has reviewed the information in this announcement and confirms that she
is not aware of any new information or data that materially affects the
information reproduced here.
The information contained within this announcement is deemed to constitute
inside information as stipulated under the retained EU law version of the
Market Abuse Regulation (EU) No. 596/2014 (the "UK MAR") which is part
of UK law by virtue of the European Union (Withdrawal) Act 2018. The
information is disclosed in accordance with the Company's obligations under
Article 17 of the UK MAR. Upon the publication of this announcement, this
inside information is now considered to be in the public domain.
** ENDS **
Oriole Resources Plc Tel: +44 (0)23 8065 1649
Tim Livesey / Bob Smeeton / Claire Bay
BlytheRay (IR/PR Contact) Tel: +44 (0)20 7138 3204
Tim Blythe / Megan Ray
Grant Thornton UK LLP Tel: +44 (0)20 7383 5100
Samantha Harrison / Ciara Donnelly
SP Angel Corporate Finance LLP Tel: +44 (0)20 3470 0470
Ewan Leggat / Harry Davies-Ball
Notes to Editors:
Oriole Resources PLC is an AIM-listed gold exploration company, operating
in West Africa. It is focussed on early-stage exploration
in Cameroon, where the Company has a maiden Resource of 305,000 oz Au in
the JORC Inferred category at the Bibemi project and has identified
multi-kilometre gold and lithium anomalism within the district-scale Central
Licence Package project. At the more advanced Senala gold project
in Senegal, Oriole was advised by IAMGOLD on 26 April
2023 that AGEM Senegal Exploration Suarl ('AGEM') was now a wholly-owned
subsidiary of Managem Group. As previously announced, AGEM has earned an
initial 51% beneficial interest by spending US$4 million and has the
option to spend up to a further US$4 million by 28 February 2024 to
earn a further 19% interest. Reverse Circulation drilling is planned as part
of AGEM's Year 6 programme at Senala. The Company also has several
interests and royalties in companies operating in East
Africa and Turkey that could deliver future cash flow.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END IR BRGDCXDDDGXIRecent news on Oriole Resources
See all newsRCS - Oriole Resources PLC - Investor Presentation
AnnouncementREG - Oriole Resources PLC - Mbe Project Delivers Further Gold Mineralisation
AnnouncementRCS - Oriole Resources PLC - Investor Presentation and Q&A
AnnouncementREG - Oriole Resources PLC - Holding(s) in Company
AnnouncementREG - Oriole Resources PLC - Final Results and Notice of AGM
Announcement