REG - Oriole Resources PLC - Interim Results
05/09/2024 07:00
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RNS Number : 9497C Oriole Resources PLC 05 September 2024
Oriole Resources PLC
('Oriole Resources', 'Oriole', 'the Company' or 'the 'Group')
Interim Results for the six-month period ended 30 June 2024
Oriole Resources (AIM:ORR), the AIM-quoted exploration company focussed on
West and Central Africa, announces its unaudited Interim Results for the
six-month period ended 30 June 2024 (the 'Period').
Operational Highlights:
· Earn-in Agreements with BCM International Limited
In January, the Group signed two agreements with BCM International Limited
('BCM') in respect of the Group's Bibemi and Mbe projects. The Group
received US$1.5 million on signing ('Signature Payments'), which gave BCM a
10% interest in each licence and the opportunity to earn up to a 50% interest
by funding up to US$4 million in exploration expenditure per licence.
In addition to these payments, BCM's commitment includes success-based
payments at each project. At Bibemi, the Company will receive a cash payment
of $1 million on the release of a 1 million ounce ('Moz') JORC-classified
Resource, with a further $1 million being paid for every addition 1Moz up to
3Moz. At Mbe, a maximum of 10 resource payments are payable on the release
of JORC Inferred Resources milestones, $1 million will be paid on the release
of every 1Moz JORC-classified Resource up to 5Moz with increased payments per
1Moz thereafter, up to a maximum cumulative Resource Payment of $20 million,
upon delivery of a 10Moz resource at Mbe.
· Portfolio Development
Bibemi gold project ('Bibemi'), Cameroon
In January, the Company announced an increase in the published inferred
JORC-compliant Mineral Resource Estimate ('MRE') to a contained 375,000 Troy
ounces ('oz') in 5.1 million tonnes ('Mt') grading 2.30 grammes per tonne
('g/t') gold ('Au') for Bakassi Zone 1 ('BZ1') at a gold price of US$2,000 per
ounce. Subject to the outcome of ongoing feasibility studies, Bibemi offers
good potential for the development of an open pit gold mine at BZ1, plus
possible additional satellite open pit operations.
In Q2, Oriole commenced the Phase 5 diamond drilling programme at BZ1, with
infill and extensional drilling focussed on upgrading and expanding the
existing MRE. This will be followed by drilling at the BZ1-NE and BZ1-SW
targets that are prospective for additional near-surface resources within some
2 kilometres ('km') of the MRE.
In June, the Company submitted an application for an exploitation licence
('ELA') to the Cameroon government, supported by various technical studies,
including an Environmental and Social Impact Assessment and preliminary
economic studies. The ELA was lodged post Period and marks the start of an
iterative negotiation process to define and formalise the terms of a Mining
Convention for the project with the Government of Cameroon.
Central Licence Package ('CLP'), Cameroon
In Q1, infill soil sampling programmes were completed over the main MB01
prospect ('MB01', encompassing MB01-N and MB01-S targets) and a second infill
soil sampling programme over the wider Mbe licence, both programmes generating
in highly encouraging results.
In Q2, a 7,055 metre ('m') trenching programme commenced at MB01-N and MB01-S
which was completed post Period-end. Initial results were announced on 3
September 2024 with highlighted results showing 50m at 1.11g/t including 20m
at 2.23g/t gold found at MBT001, 38m at 0.55g/t gold at MBT002, and 68m at
0.77g/t including 12m at 1.00g/t and 24m at 1.18g/t gold at MBT003. These
intersections correlate with previously reported gold-in-soil anomalism and
supports the Company's learned opinion that Mbe is a potentially significant
gold discovery.
On 1 July 2024, the Company reported that it had received confirmation of the
two-year licence extensions for each of the five Eastern-CLP licences.
Senala gold project ('Senala'), Senegal
In February of this year, Managem Group ('Managem') completed its earn-in at
Senala and confirmed that it had spent approximately US$5.8 million on
exploration, giving it an approximate 59% interest. The remaining 41%
interest is held by Oriole's 85% owned subsidiary, Stratex EMC SA, giving
Oriole an effective 35% beneficial ownership. A discussion on the next
steps is still ongoing but, given that Senegal remains a highly attractive
country for gold exploration and development projects, the Senala licence
remains of considerable value to the Company. During the period, the licence
was also renewed for a further three year term.
· Legacy assets
The potential value of the Company's legacy assets was demonstrated with the
receipt of US$300,000 from the sale of its remaining interest in the
Hasançelebi and Doğala mining projects in Turkey. Work continues to
monetise the remaining legacy assets.
Financial Highlights:
· The Group's pre-tax profit for the six months to 30 June 2024 was
£1.15 million (2023: loss of £0.86 million), with significant gains on the
amount receivable from Lanstead under the agreement announced 1 August 2023
('Lanstead Agreement') and a profit recognised in relation to the Signature
Payments received from BCM;
· Administrative expenses increased to £0.67 million in the period to
30 June 2024 (2023: £0.52 million) due to the expansion of the Cameroon team
to reflect the increased levels of activity required by the expanded
exploration programmes;
· Exploration expenditure of £1.13 million (2023: £0.22 million) in
Cameroon, mainly related to commencement of a fifth phase of drilling at
Bibemi and soil sampling and trenching programmes at Mbe;
· The cash balance of the Group as at 30 June 2024 was £0.84 million
(31 December 2023: £0.11 million).
Eileen Carr, Chair of Oriole, said: "The year started on a high note with
confirmation of the BCM deals on both the Bibemi and Mbe licences. As
suspected, this news positively impacted the share price, which in turn
significantly increased the monthly proceeds received from Lanstead. Despite
the initial market misgivings surrounding this financing, it has, in fact,
proved beneficial at a time when raising finance in the junior mining sector
was all but impossible. We reached the first anniversary of the Lanstead
transaction in August and the amount received to date is the equivalent of
0.24p per share, significantly higher than could have been achieved in the
market in mid-2023, and despite the low share price experienced at the end of
last year.
"In May, we welcomed Martin Rosser as CEO and said farewell to Tim Livesey.
As long-term shareholders will know, Tim introduced Cameroon to the Company
back in 2018 and he has played a significant role in getting the Company to
this exciting point. I would like to thank Tim personally for his
contribution to the development of the Company and for the help he extended to
me since my joining and we all wish him well in his next endeavour.
"Turning next to the work programme at Bibemi, this has suffered a little from
the fact that Cameroon is not yet an established gold mining country, and
therefore most equipment and consumables must be shipped in from abroad.
This has led to some teething problems but the team has put in place various
measures to allow for the drilling to continue throughout the rainy season and
the programme is progressing well. The recovery of the drill core has been
excellent and we are awaiting results from the first set of drill holes which
we will release in batches as and when the results have been fully analysed.
"The areas surrounding BZ1 have the potential to add ounces to the primary
open pit, and work is underway to better understand the metallurgy and mineral
processing aspects of the ore in order to determine the processing method for
gold recovery. The submission of the application for a gold exploitation
permit is the first such submission in Cameroon and I am hopeful that Bibemi
will be the first commercial gold mine in country, although further work is
required to prove up various technical and financial feasibility aspects of
the development.
"At Mbe, work is progressing towards a maiden drilling programme in the next
field season. The first set of results from trenching were released post
Period end with further results from the remaining trenches due shortly,
which will assist with finalising this plan. Both Oriole and BCM are excited
by the potential of Mbe as the results to date from soil sampling and
trenching have been extremely positive.
"Earlier this year, Dave Pelham, our Independent Non-Executive Director, and I
visited Cameroon to attend the CIMEC exhibition in the capital, Yaoundé, and
to visit both the Bibemi and Mbe projects. We were both extremely impressed
with the welcome we received in-country by the Government, our High
Commissioner, who continues to help our efforts, the populace and our teams on
the ground. The desire to develop Cameroon's mining sector is palpable and
the enthusiasm shown by the Prime Minister and Minister of Mines was plain to
see. I was encouraged to see that Canyon Resources, an ASX-listed company,
received its Mining Licence last month, and this can only bode well for Oriole
and the mining sector in general.
"In Senegal, our licence was renewed earlier in the year and we are working
together with our partners Managem and EMC to assess the best way forward to
add value to the licence. We expect to be able to give more clarity on the
work programme over the coming months.
"Our partnership with BCM goes from strength to strength, as do our
relationships with both BEIG3 in Cameroon and EMC and Managem in Senegal.
Finally, we are starting to see results from both the Bibemi and Mbe
exploration programmes coming through, and I am hopeful that the wait will
have been worthwhile."
Interim Management Report
During the first six months of 2024, which covered the second half of the
2023/24 exploration field season in Cameroon, significant progress was made at
the Company's flagship prospects and projects. Importantly, at Bibemi, this
led to an updated JORC-Resource announced on 15 January 2024 and preparation
for the ELA application to the Cameroon Mines Ministry ('Ministry'), which was
submitted post Period. The application is in a pending status whilst the
current Phase 5 drilling programme and associated project technical and
economic studies progress. The Company is optimistic that the project has
good potential to become the first industrial-scale gold mine in Cameroon.
Moreover, it would be a definitive step for establishing Cameroon as an
important gold mining country given its now demonstrated geological endowment.
At Mbe, in the Eastern CLP, following the strong surface sampling results,
Oriole conducted extensive trenching work; an important step towards the
intended maiden drilling programme later in the year. Mbe holds significant
potential to become an exciting gold deposit. The Board believes this
potential could be replicated across the remainder of the Eastern CLP as
regional exploration work continues to test the gold corridor identified to
date.
At the Senala gold project in Senegal, Managem has concluded its earn-in to
take 59% ownership. The property includes the resource-stage Faré prospect,
where the Company has completed an MRE at Faré South for a maiden
JORC-compliant Resource of 3.85Mt grading 1.26g/t Au for 155,000oz Au
contained in the Inferred category, based on a 0.3g/t Au cut off and within a
US$1,800/oz pit shell. Finalisation of the ownership percentage is nearing
completion and discussions are ongoing regarding the next steps at the
project, with all parties committed to exploring the full potential of the
project.
Funding
The Company started the Period with considerably improved finances, following
execution of the BCM earn-in agreements for the Bibemi and Mbe licences and
supported by the ongoing monthly receipts under the Lanstead Agreement. For
Bibemi and Mbe, the Company received Signature Payments from BCM of US$0.5
million and US$1.0 million respectively.
As a result, the Board have decided to terminate the initiative to bring in
possible project level funding from a Canadian Investment Bank (announcement
dated 11 April 2023).
The Company was pleased to have received total cash payments of US$300,000 in
relation to its interest in the Hasançelebi and Doğala mining projects in
Turkey (per the Company's announcement dated 22 May 2024). Efforts to
realise value from the remaining legacy assets continue but, in all cases,
progress is outside of the Company's control.
Bibemi
An updated Inferred JORC-compliant MRE was announced on 15 January 2024 for
the BZ1 prospect. It was prepared by independent consultant Forge
International Limited ('Forge') as part of the ongoing technical studies to
support the application for an ELA.
The pit-constrained Resource is estimated to be 5.1Mt grading 2.30g/t Au for
approximately 375,000 oz Au in the JORC Inferred Resources category,
reflecting a 23% increase in the resource inventory, predominantly the result
of an improved gold price. The entire MRE was within the limit of a
US$2,000/oz gold price pit shell and modelled over a strike length of
approximately 1.3km to a depth of 263m below surface, using a lower cut-off
grade of 0.45g/t Au and a higher-cut-off of 20g/t Au. Importantly, the
updated MRE is open at depth and along strike to the northeast and there
exists significant potential to identify additional resources at BZ1, and also
at the other three prospects on the licence, namely Bakassi Zone 2, Lawa West
and Lawa East, which are all located within a few kilometres of BZ1.
Subsequently, a Phase 5 diamond drilling programme was designed for a total of
7,060m in 62 holes, with the new locations being based on a combination of
surface exploration and ground magnetics data. A total of 4,560m in 37 holes
were planned as infill and extensional drilling at the existing BZ1 MRE zone,
focussed on upgrading and expanding the current MRE. A further 2,500m in 25
holes was planned largely to test two areas, BZ1-NE and BZ1-SW, which are
proximal to two geophysics targets that are along-strike extensions to BZ1 and
have coincident gold anomalism and quartz veining at surface. These shallow
holes are focussed on identifying additional, near-surface resources within
2km of the existing MRE.
Drilling commenced in early June (announcement 11 June 2024), somewhat later
than scheduled due to third party logistical challenges, largely related to
the Red Sea shipping crisis. However, provisions were put in place to enable
the programme to continue during the rainy season. First results are
expected in Q3 2024.
Separately, the Company announced, post Period, that SGS South Africa had been
engaged to undertake the next phase of mineralogical and metallurgical test
work on representative mineralised material from Bibemi and that it had
submitted an ELA to the Ministry (announcement dated 17 July 2024). The ELA
is required to secure the tenure of the licence as exploration and development
activities continue. The intention is to progress the ELA with the Ministry
alongside the ongoing exploration drilling programme, metallurgical test work
and project feasibility studies.
Central Licence Package (CLP)
Mbe
Over the Period, the Company reported further highly encouraging surface
exploration results at the Mbe licence, which supports the objective of
planning and starting a maiden drilling programme in the 2024/25 field
season. Notably, as part of BCM's due-diligence review over the main,
3km-long MB01 target, results of up to 256.74g/t Au were reported from outcrop
sampling and up to 25.16g/t Au from pit sampling (announcement dated 22
January 2024). Structural mapping of the pits was completed and the results
compiled to determine the controls on gold distribution. Infill soil
sampling was also undertaken at MB01 to better-define the anomalism prior to
designing the subsequent trenching programme.
Results from the infill soil sampling work significantly improved the
definition of previous regional gold-in-soil anomalism, with results from
4,537 samples (including quality assurance and quality control ('QAQC')
samples), delivering up to 8,174 parts per billion ('ppb') Au. The increased
data resolution from this infill programme identified three key zones,
including the previously defined MB01-N and MB01-S targets, for more detailed
follow-up. At MB01-S, an equal to or greater than ('≥') 100 ppb Au soil
anomaly extends over 1.15km by up to 0.75km, marking a significant zone of
pervasive gold deposition. A second >50 ppb Au soil anomaly (0.95km by up
to 0.75km) was defined at MB01-N, with results highlighting the importance of
intersecting structural controls and a third, more diffuse, zone was outlined
along strike of MB01-N, to the northeast, extending over an area of 0.50km by
up to 0.50km.
Additional pit sampling also delivered best results of 260g/t Au from 556
samples (including QAQC), with 160 samples (31%) grading over 0.5g/t Au.
During the Period, a trenching programme commenced over the anomalies at
MB01-N and MB01-S for an initially planned 5,500m at a 200m spacing between
trenches, designed to provide three-dimensional data by mapping and sampling
the rocks underpinning these soil anomalies. This programme was completed
post Period, with an increased total length of 7,055m, with the additional
metres reflecting infilling of the fence lines to a 100m spacing.
A second infill soil sampling programme over the broader regional soil
anomalism (100m x 50m spacing) was also carried out and completed post
Period. This generated further encouraging results over the wider Mbe
licence area and has identified three new zones of gold anomalism to the east
of MB01, being MB02, MB03 and MB04, with results up to 0.28g/t Au in soil
samples. All three zones present attractive targets for potential satellite
deposits to the main MB01 prospect.
Other Eastern CLP licences
Oriole retains a 90% interest in the other four Eastern CLP licences (Tenekou,
Niambaram, Pokor and Ndom), which share a similar geological setting and
potential to Mbe. During the Period, we were delighted to announce that we had
received two-year renewals for all five gold exploration licences in the
Eastern CLP, including Mbe (announcement dated 1 July 2024). The five
licences, including Mbe, represent a contiguous, district-scale land package
covering 2,266km(2) of highly prospective geological terrane.
Wapouzé
The Company has previously submitted a formal request for a change of
substance at the Wapouzé licence area from gold to industrial minerals and,
whilst this has reportedly been approved by the Presidency, confirmation of
the licence renewal is still awaited. Once approved, the Company will look
to secure an industrial minerals partner to develop the Wapouzé project
through to exploitation on an expedited basis.
Senala
On 19 February 2024, the Company announced that Managem, through its
wholly-owned subsidiary AGEM Senegal Exploration Suarl ('AGEM'), had completed
a six-year earn-in period at the Project. Oriole's interest in Senala is
held via its 85% interest in Stratex EMC Sarl ('Stratex EMC'), the holding
vehicle for the Senala exploration licence.
Managem has confirmed to the Company that, since the 2018 Option Agreement was
signed, AGEM has spent approximately US$5.8 million on the Project.
Accordingly, AGEM's beneficial ownership position in the Senala Exploration
Licence is estimated to be 59%, and Oriole is nearing completion of an
expenditure review to confirm this percentage ownership.
The Company was pleased to announce a renewal of the exploration licence for
Senala. In accordance with the Senegalese Mining Code, the surface area of
the licence has been reduced by 25% and now stands at 354.5km(2), retaining
tenure over the key prospects identified to date, in particular Faré and
Madina Bafé (announcement dated 8 April 2024). The new licence is valid for
a period of three years from 17 February 2024.
A discussion on the next steps is currently ongoing with Managem, including
the formation of a joint-venture company, the next phase work plan and budget.
Senegal remains a sought-after country by mining companies in the gold sector.
As such, the Senala licence remains of considerable interest to Oriole.
Legacy Assets
The Company was pleased to demonstrate the latent potential of its legacy
assets with the May and June announcements that it has received a total of
US$0.30 million in relation to its interest in the Hasançelebi and Doğala
mining projects in Turkey. The proceeds will primarily be used to fund
further exploration work in Cameroon.
This consideration cleared all outstanding amounts due to Oriole under both
the exploration agreement and the royalty sale agreement signed with Bati
Toroslar in 2020. The outstanding amounts under the two agreements had no
carrying value in the financial statements of the Company.
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 at Muratdere is
pending the outcome of a local appeal that is still ongoing. The project's
initial mine plan covered 16Mt (of a total 51Mt resource) and, once in
production, is expected to deliver 68,000 tonnes ('t') 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,
assuming a resolution to the legal challenge to the EIA, the Board is
confident that there will be ready buyers for this asset.
Results
The Group has posted a profit before tax for the Period of £1.15 million
(2023: loss of £0.86 million). The two main components of this improvement
in results are the recognition of a profit on disposal in relation to BCM's
Signature Payments, and realised gains and a revaluation uplift in respect of
the amounts due under the agreement with Lanstead.
The Signature Payments of US$1.5 million secured BCM a 10% interest in both
Bibemi and Mbe, and a £0.77 million post-tax profit has been recognised on
these transactions.
A £1.0 million gain has been recognised on the amounts due from Lanstead,
reflecting a revaluation of the receivable from the 31 December 2023 closing
share price to the 30 June 2024 closing share price (0.17 pence ('p') to
0.36p). Overall, £0.53 million has been received from Lanstead in the first
six months of the year, and the average price on each settled share during the
half year was 0.28p, against the agreement reference price of 0.2533p.
At the administrative expenses level, costs increased from £0.52 million to
£0.67 million, reflecting a number of factors but primarily an expansion of
the Cameroon team, a direct result of increased activities at Bibemi, Mbe and
the other Eastern CLP projects, and a return to contractual salaries for the
Directors, following long term salary sacrifice initiatives during 2023.
The Group reports a profit after tax of £1.13 million (2023: loss of £0.71
million).
At 30 June, the Company had £0.84 million in cash, having spent £1.13
million on exploration work and having received £0.87 million from BCM under
the earn-in agreements.
Drivers for Growth
The early-stage results at Mbe in the Eastern CLP have been excellent and
confirm the Board's faith that this region has the potential to become a new
gold district. Fully funded maiden drilling at Mbe is the Company's top
priority and is being targeted for the 2024/25 field season. Results from
the recently-completed trenching programme, and commencement of maiden
drilling should be a significant driver of growth in the share price.
The same is expected for Bibemi, with the ongoing Phase 5 drilling programme
results supporting the lodged ELA and associated negotiations with the
government.
The Company also looks forward to the Ministry renewing its Wapouzé Licence,
located to the north of Bibemi, where commercial quality limestone has been
identified. Once received it shall endeavour to secure an industry partner
and generate an economic return for the efforts to date.
At the Senala licence in Senegal, the Board looks forward to discussing the
next steps with Managem and maximising the value of this quality asset.
The Board remains focussed on and determined to realise value from the Group's
legacy assets. Pleasingly, this was demonstrated with the receipt of
US$300,000 in relation to the Company's interest in the Hasançelebi and
Doğala mining projects in Turkey. Notwithstanding this progress, the
remaining legacy assets are currently in non-producing development projects
and, as such, the list of potential buyers is limited. However, as these
projects progress, such as Muratdere with its EIA process, that list will
expand and the potential for monetisation will increase.
The Board's priority is to maximise the potential of the Company's assets to
grow the share price and thus the market capitalisation of the Company. If
successful, this would also have the added benefit of increasing the value of
future monthly funds received from the Lanstead Agreement.
The Board is convinced that the assets of the Company are significantly
undervalued by the market and that the exploration work due to be reported on
during the remainder of 2024, and in to 2025, has the potential to materially
address the status quo.
Martin Rosser
Chief Executive Officer
On behalf of the Board
4 September 2024
Condensed Consolidated Interim Financial Statements
Statement of Consolidated Comprehensive Income
Notes 6 months to 6 months to
30 June 2024 30 June 2023
Unaudited Unaudited
£'000 £'000
Continuing operations
Revenue - -
Administration expenses (668) (523)
Other gains/(losses) 4 1,039 (340)
Operating profit/(loss) 371 (863)
Finance income 6 -
Profit on change of asset ownership 8 770 -
Profit/(loss) before income tax 1,147 (863)
Income tax (charge)/credit (15) 157
Profit/(loss) for the period 1,132 (706)
Other comprehensive income:
Items that may be reclassified subsequently to profit or loss:
Exchange differences on translation of foreign operations 55 70
Other comprehensive income net of tax 55 70
Total comprehensive income/(loss) for the period 1,187 (636)
Profit/(loss) for the period attributable to:
Owners of the Parent Company 1,157 (697)
Non-controlling interest (25) (9)
Profit/(loss) for the period 1,132 (706)
Total comprehensive income attributable to:
Owners of the Parent Company 1,212 (593)
Non-controlling interest (25) (43)
Total comprehensive income/(loss) for the period 1,187 (636)
Earnings/(loss) per share - continuing operations:
Basic (pence) 0.03 (0.03)
10
Diluted (pence) 0.03 (0.03)
10
Statement of Consolidated Financial Position
At 30 June 2024
Notes 30 June 30 June 31 December 2023
2024 2023 Audited
Unaudited Unaudited £'000
£'000 £'000
ASSETS
Non-current assets
Property, plant and equipment 74 20 8
Intangible assets 5 11,751 10,591 10,766
Financial assets at fair value through other comprehensive income 6 - 395 -
Financial assets at fair value through profit and loss 7 293 417 395
12,118 11,423 11,169
Current assets
Financial assets at fair value through profit and loss 7 1,172 - 593
Trade and other receivables 101 128 132
Cash and cash equivalents 843 190 114
2,116 318 839
Total assets 14,234 11,741 12,008
EQUITY
Capital and reserves attributable to owners of the Company
Ordinary share capital 8,102 7,056 8,070
Share premium 25,850 25,069 25,804
Other reserves 1,415 1,636 1,336
Retained earnings (22,363) (21,962) (23,520)
Total equity attributable to owners of the Company 13,004 11,799 11,690
Non-controlling interests 15 (284) (289)
Total equity 13,019 11,515 11,401
LIABILITIES
Current liabilities
Trade and other payables 339 226 607
Long term liabilities
Amounts received under Earn-in 8 876 - -
Total liabilities 1,215 226 607
Total equity and liabilities 14,234 11,741 12,008
Statement of Consolidated Changes in Equity
For the 6 months ended 30 June 2024
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 2024 8,070 25,804 1,336 (23,520) 11,690 (289) 11,401
Comprehensive income for the period:
- Profit for the period - - - 1,157 1,157 (25) 1,132
- Other comprehensive income - - 55 - 55 - 55
Total comprehensive income for the period - - 55 1,157 1,212 (25) 1,187
Issue of share capital net of expenses 32 46 - - 78 - 78
Non-controlling interest introduced (note 8) - - - - - 329 329
Share based payments - - 24 - 24 - 24
Total contributions by and distributions to owners of the parent recognised 32 46 24 - 102 329 431
directly in equity
As at 30 June 2024 8,102 25,850 1,415 (22,363) 13,004 15 13,019
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
Statement of Consolidated Cash Flows
6 months to 6 months to
30 June 2024 30 June 2023
Unaudited Unaudited
£'000 £'000
Cash flow from operating activities
Profit/(loss) before income tax 1,147 (863)
Add back/(deduct):
Share based payments 24 53
Depreciation 2 3
Gain on financial assets held at fair value (1,008) -
Profit on change of asset ownership (770) -
Foreign exchange movements on operating activities 227 344
Changes in working capital:
Trade and other receivables 12 39
Trade and other payables (376) (22)
Net cash flow from operating activities (742) (446)
Cash flows from investing activities
Purchase of property, plant, and equipment (76) -
Purchase of intangible assets (note 5) (1,129) (222)
Payments received in respect of interest in intangible asset 1,184 -
Cash received from Earn-in partner 876 -
Interest received 6 -
Tax received - 157
Net cash flow from investing activities 861 (65)
Cash flows from financing activities
Net funds received from issue of shares 610 194
Net cash flow from financing activities 610 194
Net decrease in cash and cash equivalents 729 (317)
Cash and cash equivalents at beginning of the period 114 507
Cash and cash equivalents at end of the period 843 190
Notes to the consolidated interim financial statements for the six months
ended 30 June 2024
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 2023 audited financial
statements and are expected to be applied in the preparation of the 2024
financial statements. Statutory financial statements for the year ended 31
December 2023 were approved by the Board of Directors on 27 March 2024 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 4 September
2024.
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 may require further funding to cover corporate overheads
and its operational plans in Cameroon within the next 12 months. 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 2024 are not necessarily
indicative of the results to be expected for the full year ending 31 December
2024. 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 2023 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 2023.
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 2023 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 (2023: £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 West Africa, Turkey and East 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:
Profit for the period:
UK West Africa Turkey Total
£'000 £'000 £'000 £'000
6 months to 30 June 2024
Administrative costs (553) (95) (18) (666)
Inter-segment charges 164 (164) - -
Depreciation (2) - - (2)
Exchange loss 7 (234) - (227)
Other income/losses 1,010 770 262 2,042
Profit before Income Tax 626 277 244 1,147
6 months to 30 June 2023
Administrative costs (474) (43) (4) (521)
Inter-segment charges 146 (146) - -
Depreciation (2) - - (2)
Exchange gains - (344) - (344)
Other income/losses 4 - - 4
Loss before Income Tax (326) (533) (4) (863)
Assets and liabilities:
UK West Africa Turkey East Africa Total
£'000 £'000 £'000 £'000 £'000
30 June 2024
Intangible assets - 11,751 - - 11,751
Property, plant and equipment 6 68 - - 74
Cash and other assets 2,248 118 43 - 2,409
Liabilities (1,121) (79) (15) - (1,215)
Inter-segment 8,214 (5,265) (2,949) - -
Net Assets 9,347 6,593 (2,921) - 13,019
30 June 2023
Intangible assets - 10,591 - - 10,591
Property, plant and equipment 7 13 - - 20
Cash and other assets 211 85 22 812 1,130
Liabilities (155) (70) (1) - (226)
Inter-segment 5,621 (3,374) (2,247) - -
Net Assets 5,684 7,245 (2,226) 812 11,515
Cash and other assets include cash and cash equivalents amounting to £843k at
30 June 2024 (2023: £190k).
4. Other gains and losses
2024 2023
£'000 £'000
Exchange losses (227) (344)
Gain on financial assets held at fair value (note 7) 1,008 -
Other income 258 4
At 30 June 1,039 (340)
5. Intangible assets
2024 2023
£'000 £'000
At 1 January 10,766 10,559
Exchange movements (144) (190)
Disposal (329) -
Acquisition by introduction of non-controlling interest -
329
Additions 1,129 222
At 30 June 11,751 10,591
6. Financial assets at fair value through other comprehensive income
2024 2023
£'000 £'000
Financial assets at fair value through other comprehensive income - 395
At 30 June - 395
The Group holds an 8.03% investment in Thani Stratex Djibouti Limited ('TSD'),
and an associated loan note payable by TSD (see note 7). Full provision
against these values was made in the year ended 31 December 2023.
7. Financial assets at fair value through the profit and loss account
On 1 August 2023 the Company arranged a conditional subscription to raise
£1.767 million following the issue of 930 million new shares at 0.19 pence
per share to Lanstead Capital Investors L.P. ('Lanstead'). The Company entered
into an equity swap price mechanism (the 'Sharing Agreement') with Lanstead
for these shares, with consideration payable on a monthly basis over a period
of 24 months. The Company also issued 83.7 million shares to Lanstead in
consideration for the equity swap agreement.
The consideration due from Lanstead has been treated as a derivative financial
asset and its fair value has been determined by reference to the Company's
share price at the balance sheet date as measured against a benchmark price of
0.253 pence per share. If the actual share price exceeds the benchmark price
during any of the 24 settlement months, the Company will receive more than
100% of the expected monthly settlement on a pro rata basis.
2024 2023
Total Non-current assets Current assets Total Non-current assets Current assets
Group £'000 £'000 £'000 £'000 £'000 £'000
Value at 1 January 988 395 593 440 440 -
Capital repayments (531) - (531) - - -
Fair value adjustment at 30 June 1,008 874 134 (23) (23) -
Recategorisation - (976) 976 - - -
Fair value recognised at 30 June 1,465 293 1,172 417 417 -
The financial asset held at 30 June 2023 was a loan note due from TSD, the
value of which is now fully provided against.
8. Earn-in transactions with BCM International Limited
During the period the Group entered into two agreements with BCM International
Limited ('BCM') relating to the Bibemi and Mbe projects in Cameroon.
Both deals reflected initial signature payments which gave BCM a 10% interest
in each project, with the opportunity to earn a further 40% interest by
funding $4 million of exploration expenditure on each project.
The initial payments have been reflected in these financial statements as a
profit on change in ownership in respect of each project, net of 10% of the
costs incurred on each project. The asset values have continued to be
recognized in full with BCM's initial interest in the projects recognized as
an incoming non-controlling interest. BCM's interest is currently a beneficial
interest, awaiting finalization of necessary corporate restructuring, at which
point the interest will become an equity interest. Nevertheless, the substance
of the transactions have been fully reflected in these financial statements.
Cash contributions by BCM to the exploration expenditure on the projects have
been recognized as incoming funds and held as a liability for conversion into
an eventual equity interest in the projects.
Bibemi Mbe Total
Group £'000 £'000 £'000
Signature payments 395 789 1,184
Disposal of ownership interest (295) (34) (329)
Capital gains tax arising (10) (75) (85)
Profit on change of asset ownership 90 680 770
Non-controlling interest recognised upon signature as an asset acquisition 295 34 329
Funds received in respect of the earn-in agreements pending conversion to an 611 265 876
equity interest
9. Related party transactions
Directors of the Company received total remuneration of £226k for the six
months ended 30 June 2024 (six months ended 30 June 2023: £147k).
10. Earnings per share
The calculation of loss per share is based on the following:
2024 2023
Profit/(loss) attributable to equity holders (£'000) 1,157 (697)
Weighted average number of shares basic 3,892,008,480 2,775,054,530
Earnings per share basic (pence) 0.03 (0.03)
Weighted average number of shares diluted 4,048,367,335 2,775,054,530
Earnings per share diluted (pence) 0.03 (0.03)
Competent Persons Statement
The information in this announcement that relates to the Mineral Resources at
both Bibemi and Senala (Faré) are based on data compiled by Mr Robert
Davies, EurGeol, CGeol, an independent consultant to Oriole. Mr Davies is a
Director of Forge International Limited. Mr Davies has sufficient
experience that is relevant to the style of mineralisation and type of deposit
under consideration and to the activity being undertaken to qualify as a
Competent Person as defined in the 2012 Edition of the "Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore Reserves". Mr
Davies consents to the inclusion in the report of the matters based on his
information in the form and context in which it appears. The Company confirms
that it is not aware of any new information or data that materially affects
the Mineral Resource Estimates, and that all material assumptions and
technical parameters underpinning the MRE continue to apply.
The information in this release that relates to Exploration Results and the
planned exploration programme has been compiled by Mrs Claire Bay (Executive
Director, Exploration). Mrs Bay (MGeol, CGeol) is a Competent Person as
defined in the JORC code and takes responsibility for the release of this
information. Mrs Bay 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 **
For further information please visit www.orioleresources.com
(http://www.orioleresources.com/) , @OrioleResources on X,
or contact:
Oriole Resources Plc Tel: +44 (0)23 8065 1649
Martin Rosser / 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 / Elliot Peters
SP Angel Corporate Finance LLP Tel: +44 (0)20 3470 0470
Ewan Leggat
Notes to Editors:
Oriole Resources PLC is an AIM-listed gold exploration company, with projects
in West and Central Africa. It is focussed on early-stage exploration
in Cameroon, where the Company has reported a Resource of 375,000 oz Au at
2.30g/t in the JORC Inferred category at its 82.2%-owned Bibemi project and
has identified multi-kilometre gold and lithium anomalies within the
district-scale Central Licence Package project. BCM International is
currently earning up to a 50% interest in the Bibemi and Mbe projects in
return for a combined investment of US$1.5 million in signature payments and
up to US$8 million in exploration expenditure, as well as JORC
resource-based success payments.
At the Senala gold project in Senegal, AGEM Senegal Exploration Suarl
('AGEM'), a wholly-owned subsidiary of Managem Group, has recently completed
a six-year earn-in to acquire an estimated 59% beneficial interest in the
Senala Exploration Licence by spending US$5.8 million. A review of
expenditure and discussions on the formation of a joint-venture company are
currently underway. The Company also has several interests and royalties in
companies operating in East Africa and Turkey that could deliver future
cash flow.
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