REG - Power Metal - Interim Results
27/06/2022 16:00
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RNS Number : 3474Q Power Metal Resources PLC 27 June 2022
27 June 2022
Power Metal Resources plc / EPIC: POW / Market: AIM
Power Metal Resources plc ("POW", "Power Metal" or the "Company")
Interim Results
Power Metal Resources plc, the London listed exploration company seeking
large-scale metal discoveries across its global project portfolio, announces
its unaudited interim results for the six month period ended 31 March 2022.
Paul Johnson, Chief Executive Officer of Power Metal commented: "There is an
underlying confidence and optimism that permeates the Power Metal business and
the team within it.
We recognise the pressure challenging markets and falling share prices place
on investor portfolios and are respectful of this whilst still
enthusiastically articulating our progress and our ambitions.
Power Metal is at a key point with all projects having been the recipient of
varying extents of exploration, which has been a substantial exercise given
the breadth of our portfolio.
Where appropriate we are pursuing accelerated value crystallisation by
preparing parts of our business for spin-out/disposals as you will see in the
summary table below. Our internal exploration efforts will be focused on a
smaller group of retained projects.
From this point acquisitions will be principally targeting additional uranium
opportunities where we do see the value of continued growth of the uranium
portfolio within our company.
My thanks go to the Power Metal team for their demonstrable commitment to
progressing our business and to shareholders who have backed our work to
date. Our ultimate objective is to deliver considerable financial returns to
our shareholders and our focus to date has been to build a company capable of
delivering that through volatile markets.
My very best to investors in the junior resource sector, a unique group of
people willing to risk their capital, in a highly volatile sector, to deliver
a financial return and enhanced opportunities in life. For those allocating
capital to Power Metal we will strive to help you succeed in your ambitions."
NOTE:
The interim report contains the following key sections:
- Key Developments in the half year to 31 March 2022;
- Power Metal Interests as at today's date;
- Operational Highlights for the half year to 31 March 2022;
- Operational Highlights after the half year end (April 2022 to
date);
- Financial Highlights for the half year ended 31 March 2022; and
- Interim Financial Accounts for the half year ended 31 March 2022
Power Metal plans to release its next Quarterly Business and Operational
Update for the second quarter in July, capturing latest developments within
the business in addition to the information provided below.
KEY DEVELOPMENTS IN THE HALF YEAR TO 31 MARCH 2022
The half year period included extensive exploration activity including:
- Reverse circulation (RC) drilling at the Tati Project located in
Botswana.
- Delineation of 12 airborne magnetic targets at the Ditau Project
in Botswana and commencement of diamond drill programme.
- Diamond drilling at the Haneti Project in Tanzania.
- Diamond drilling at the Victoria Goldfields in Australia.
- Confirmation of bonanza silver from diamond drilling at the Silver
Peak Project located in British Columbia, Canada.
- High-grade uranium confirmed from sampling undertaken at the
Saskatchewan uranium property portfolio.
The half year period also included extensive corporate activity including:
- Acquisition of the Pilot Mountain Project which hosts a robust
tungsten-dominated Mineral Resource Estimate (MRE) located in Nevada, USA, and
forming the completed Golden Metal Resources plc ("Golden Metal Resources")
planned listing vehicle.
- Acquisition of the Western Australia and Northern Territory
projects comprising the planned listing vehicle First Development Resources
Ltd.
- Grant of key exploration licences, environmental approvals, and
heritage agreements across various of the Company's global project interests.
- Completion of the disposal of the Company's Schreiber-Hemlo
interests located in Ontario, Canada, to First Class Metals PLC who plan to
list in London in 2022.
- Expansion of the Company's uranium interests surrounding the
Athabasca basin located in Saskatchewan, Canada, and preparation of data rooms
and factsheets for 7 uranium properties.
POWER METAL INTERESTS AT TODAY'S DATE
Country POW % Project Package Resources Targeting Status
Australia 49.9% New Ballarat Gold Corporation Gold Balance of drill results awaited - Planned IPO
Victoria Goldfields JV
Australia 82.78%(*) First Development Resources Copper - Gold - Uranium - Rare Earths - Lithium Planned IPO in progress
Australia 100% Gawler Project Copper - Gold Awaiting licence grants
Botswana 52.60%(#) Molopo Farms Complex Nickel - Copper - Platinum Group Metals (PGMs) Transition of ownership then drilling.
Botswana 100% Tati Greenstone Belt Gold - Nickel Preparations for next step drilling key gold targets
Botswana 50% Kalahari Copper Belt JV Copper - Silver Exploration underway to delineate drill targets
Botswana 50% Ditau Camp JV Rare Earths Diamond drilling underway - await assays
Canada 30% Silver Peak Silver Ongoing discussion of exploration plans & corporate options
Canada Earn-in up to Authier North Lithium Finalisation of next stage exploration steps
100%
Canada 100% Athabasca Basin Uranium Finalisation of next stage exploration steps & corporate options
Canada 36.3% First Class Metals Gold - Nickel - Copper - Zinc Planned IPO in Progress
Tanzania 35% Haneti Nickel - Copper - Platinum Group Metals (PGMs) - Gold - Lithium Finalisation of next stage exploration steps & corporate options
USA 83.13% Golden Metal Resources Gold - Silver - Copper - Tungsten - Zinc Planned IPO in Progress
USA Earn-in up to Alamo Gold Gold Review of detailed exploration report findings
75%
(*)( )Reducing to 62.12% after Completion of the Pre-IPO Financing
(#) Subject to completion of acquisition announced 18.5.22 interest will
increase to 87.71%
OPERATIONAL HIGHLIGHTS FOR THE HALF YEAR TO 31 MARCH 2022
African Project Interests
Tati Greenstone Project
· In October 2021 a 1,000m RC drill programme was commenced at the Tati
Project located in the Tati Greenstone Belt of north-eastern Botswana. The
main goal of the drill programme was to test for the presence of geological
formations which host nearby operating Gold (Au) and Nickel (Ni) mines within
the Tati Greenstone Belt.
· Results from the 1,000m RC drilling programme were released after the
period end and are outlined below.
Molopo Farms Complex Project
· In November 2021 Kavango Resources PLC (LON:KAV "Kavango") signed an
option agreement with Kalahari Key Mineral Exploration Pty Limited ("KKME"),
the holder of a 60% interest in the Molopo Farms Complex Project (Power Metal
holds the remaining 40%). The option agreement was to acquire 100% of the
outstanding KKME shares.
· The option was extended on two occasions but in February 2022,
Kavango withdrew, unable to agree the final terms for acquisition with all
shareholders. In May 2022, as outlined below, Power Metal secured a
conditional agreement to acquire an additional 58.7% of the remaining KKME
shares to take its overall shareholding in KKME to 87.71%.
· Following completion of the 2021 diamond drill campaign, in January
2022, the Company announced the renewal for 2 years of two key prospecting
licences covering the Molopo Farms Complex Project:
- PL310/2016 (221.4km(2))
- PL311/2016 (486.2km(2))
Kanye Resources Joint Venture
· The Kanye JV includes 4,257km(2) of ground within the Kalahari Copper
Belt ("KCB") located in northern Botswana over ten prospecting licences.
During the period, ground exploration and drill target planning continued in
the KCB, and in October 2021, the JV confirmed approval of the Environmental
Management Plan ("EMP"), clearing the last key administrative hurdle, and
enabling drilling to be undertaken subject to the results of the ongoing
target refinement.
· The Kanye JV also includes the Ditau Camp Project ("Ditau" or the
"Ditau Project") located in southwestern Botswana, which is considered to be
prospective for rare-earth element ("REEs") and base-metal mineralisation. In
March 2022, the Company announced the identification of 12 airborne magnetic
targets the Ditau Project with the highest profile targets selected for
inclusion in a diamond drill programme which commenced following the period
end. The targets included:
- i10 Target (a discrete circular airborne magnetic anomaly with a
diameter of 2.2km)
- i8 Target (a larger ring-like anomaly with a diameter of 4km)
- i1 Target (that may represent a large, 7km x 18.5km intrusive
complex)
· Whilst the drilling campaign would primarily target REE mineralisation
hosted within interpreted carbonatites or felsic intrusives, the targets could
also be related to layered mafic intrusive systems, which are considered by
the Company to be prospective for nickel, copper, and platinum group element
("PGE") mineralisation.
Haneti Project
· In January 2022, the Company announced the commencement of the
inaugural diamond drill campaign at the Haneti Project targeting
nickel-copper-cobalt and PGE magmatic sulphide mineralisation.
· By February 2022, the drill campaign had successfully completed a total
of 900.04 meters of drilling; intersections of serpentine and gabbroic rocks
were identified and following core logging the project moved into the sampling
and testing phase.
· Assay results from the sampling and testing phase were released after
the period end and are outlined below.
Australian Project Interests
New Ballarat Gold Corporation (Victoria Goldfields JV)
· The JV with Red Rock Resources plc (LON:RRR) had previously submitted
licence applications over c. 2,300km(2) of ground within the prolific
Victorian goldfields, and during the period saw further licence applications
granted. By December 2021, a total of 9 exploration licences were granted
covering 1,501km(2), several of which cover high priority exploration targets.
· Various desktop and field exploration work continued through the
period and in December 2021, inaugural diamond drilling commenced targeting
gold mineralisation at the O'Loughlin's and Mt. Bute prospects.
First Development Resources
· In October 2021, the Company announced that its wholly owned
subsidiary First Development Resources Ltd ("FDR UK"), had acquired outright
First Development Resources PTY Limited (FDR Australia), an Australian private
company holding 4 granted exploration licence interests and one licence
application interest in Western Australia. Additionally, a A$165,000
government co-funding drilling support grant was awarded for the Wallal
Project held by FDR Australia.
· FDR UK commenced preparations for a UK listing, and in November 2021,
announced FDR Australia had acquired URE Metals PTY Limited, the holder of
three exploration licence applications covering 1,574.92km(2) prospective for
uranium and REE mineralisation within the Northern Territory, Australia.
· In November 2021, the Company saw the grant of the final Western
Australia licence held by FDR Australia, Braeside West, and in February 2022,
the grant of all three Selta Project licences in the Northern Territory and
the launch of an in-depth review of all geological, geophysical, and
geochemical information available over the project. The results of this
review announced in March 2022, confirmed multiple high-priority targets for
uranium and REE mineralisation.
· In February 2022, the Company also announced the results of a
comprehensive desktop study over the Paterson region projects, which included
several developments from the magnetic bullseye targets located within the
Wallal Project.
Gawler Project
· In October 2021, Power Metal's 100% owned Australian subsidiary Power
Metal Resources Australia Pty Limited, lodged applications covering
1,994Km(2) within the Gawler Craton of South Australia, which are
specifically targeting gold-copper mineralisation.
North American Project Interests
Silver Peak Project
· The assay results following a summer 2021 diamond drilling programme
at the Silver Peak Project located in British Columbia, Canada, were released
in November 2021. The results highlighted bonanza grade silver (>1,000g/t)
in 10 of the 19 holes drilled, including a top intercept of 0.76m of
8,692.2g/t Ag (279.5 oz/t).
· Furthermore, overlimit assays were completed which returned
high-grade copper, antimony, and lead, with the highlight result increasing to
0.76m of 10,131g/t Ag-Equivalent.
Saskatchewan Uranium Properties
· Building on the initial staking of exploration properties completed
in September 2021, in October the Company announced an expansion of its wholly
owned uranium interests to 7 properties covering a combined 241km(2),
surrounding the prolific Athabasca Basin in Saskatchewan, Canada. The package
was further increased to 411.96km(2) as announced in November 2021.
· Also announced in November 2021 was the launch of an inaugural
exploration sampling programme covering 3 of the 7 properties, the results
from which were announced in December 2021, and confirmed high-grade uranium
in rock samples with highlight results up to 3.86% U(3)0(8) (38,600ppm).
· In January 2022, the Company launched an extensive data compilation
over all 7 properties to provide data rooms for internal use and factsheets to
assist third parties expressing an interest in the properties.
· In February 2022, the Company announced the results from the
Reitenbach Property review, confirming extensive uranium prospectivity and
that various commercial options for the Property were under review. A
National Instrument 43-101 technical report for Reitenbach to assist the
commercialisation process was commissioned in March 2022, the results of which
will be announced in due course.
Authier North Project
· A programme of rock and soil sampling launched in September 2021
demonstrated the highest lithium results located in the eastern part of the
Authier North Project, within the northeast and south-eastern grids. In the
period, the Company reviewed next-stage exploration plans which may include
additional infill soil sampling between the two grids, as well as possible
ground-based geophysical surveys over the entire project.
Golden Metal Resources
· Golden Metal Resources continued to work on preparations for its
planned IPO in the period which would see the listing of a Nevada-focused
exploration business in London.
· In December 2021, the Company announced a successful pre-IPO
financing for Golden Metal Resources at a pre-money valuation of
£3.25million, raising £750,000 (including £75,000 subscribed by Power Metal
and £50,000 by Paul Johnson, Power Metal CEO).
· The Company announced In October 2021 that new copper anomalies had
been identified from exploration work over the Garfield Project leading to
additional staking of claims to cover the newly defined anomalies.
· In November 2021, the Company completed the 100% acquisition of the
Pilot Mountain Project into Golden Metal Resources plc from AIM-listed Thor
Mining PLC (LON:THR).
· A detailed exploration update covering all four properties (Pilot
Mountain, Golconda, Garfield, and Stonewall) was announced in November 2021,
and a further commercial & project update was released in February 2022.
Alamo Project
· In November 2021 the Company announce the commencement of the test
pitting programme at the Alamo Project in Arizona USA the results of which
remained outstanding at the half year end and as at the date of this report
further technical information has been received which is currently under
review (see below).
OPERATIONAL HIGHLIGHTS AFTER THE HALF YEAR END (APRIL 2022 TO DATE)
African Project Interests
Tati Greenstone Project
· In April 2022, the Company announced drill results from the RC drill
programme which commenced in October 2021. The programme successfully
identified the targeted geological formations and gold in assays were returned
from 7 holes which were targeted within a previously identified Au-in-soil
anomaly. The highlight results included 5.17g/t Au over a 3m intersection
from only 9m downhole.
· Following these results and a further geological review, the Company
secured an additional prospecting license over ground covering the historical
Cherished Hope Gold Mine, which added 16.14km(2), further increasing the Tati
Project footprint to 140km(2).
Molopo Farms Complex Project
· In May 2022, the Company announced it had signed an initial agreement
with the shareholders of Kalahari Key Mineral Exploration Pty Ltd ('KKME") to
acquire an additional 58.7% of the issued share capital of KKME. The goal is
to then restructure the ownership of the Molopo Farms Complex project so that
KKME's 100% interest is restored and to become the operator of the Molopo
Farms Complex Project.
· Upon completion of the acquisition and further restructuring, the
Company will hold 87.71% of the issued share capital of Kalahari Key Mineral
Exploration Pty Ltd.
Kanye Resources Joint Venture
· In April 2022, the Company announced the commencement of diamond
drilling at the Ditau Camp Project. The programme includes up to 2,400m of
drilling within 6 holes targeting 3 high-priority exploration areas.
· In May 2022, the Company also announced the expansion of the
exploration programme to include 16.1 line-km of Audio-Magnetotelluric ("AMT")
geophysics surveys over various target areas.
· Drill programme updates have been provided post half year end
including second hole DITDD004 which demonstrated highly elevated magnetic
susceptibility readings between 293m and 321m (the "Zone of Interest"). The
core from the Zone of Interest has been sent for rush assay.
Haneti Project
· In May 2022, the Company announced the drill results from the diamond
drill programme where all drillholes intersected significant sequences of
altered ultramafic and mafic rocks, representing the first ever fresh rock
drill core samples extracted from the Haneti Project.
· Integration of thin section petrographic analyses with bulk rock
geochemical results across multiple intersected lithological units suggest
that the PGE potential at Haneti is limited to serpentinite units, and that
nickel and copper mineralisation should preferentially be targeted within the
intrusive gabbro units.
· Whilst the drilling results showed anomalous results for nickel,
copper, gold, and PGE's that are subject to further interpretation,
economically significant intersections of these metals were not encountered in
the drilling.
· Simultaneously, rock sampling results from the Babayu Lithium
Prospect highlight significant lithium and tantalum potential with
lithium-caesium-tantalum ("LCT") pegmatite mineralisation outlined over a 600m
strike-length. The chip sample results (up to >10,000ppm Li and 2,680ppm
tantalum) and strike length combined with the perceived shallow dip of the
main pegmatite body highlight the potential for a significant near-surface
mineralised body that warrants further assessment and evaluation.
· Licence applications have been made in respect of the areas
considered prospective for lithium and the JV is currently implementing a
lithium consolidation strategy including existing lithium applications and
reviewing potential partnerships with local licence holders.
Togo Uranium
· In June 2022 Power Metal announced an agreement to evaluate, acquire
and explore new uranium opportunities in Togo, West Africa.
Australian Project Interests
New Ballarat Gold Corporation (Victoria Goldfields JV)
· In the period the JV's combined footprint within the Victoria
Goldfields increased to 1,832km(2) from 14 granted exploration licences,
including key licence grants in May 2022 - notably EL007330 located northeast
of Ballarat, Australia. Significantly, this newly granted licence covers the
historical Ajax gold mine which historically produced 312,789oz Au at an
average grade of 14.8g/t Au in the 1920s.
· In the period, the JV has undertook 860m of diamond drilling
programme targeting the O'Loughlin's and Mt Bute Prospects, located 30km and
20km from the town of Ballarat, Australia, respectively.
· Initial assay results from the O'Loughlins Prospect were released on
12 April 2022, demonstrating high-grade gold from O'Loughlins and further
results released in June 2022, noted the discovery of intrusion related gold
(IRG) mineralisation confirmed at Mt Bute Prospect.
First Development Resources
· In April 2022, the CEO of FDR UK undertook a site visit to the FDR
Australia projects and conducted meetings with key relationship partners in
Western Australia and the Northern Territory.
· A Selta project focused update was released in May 2022, confirming
enhanced REE prospectivity and an additional REE exploration target area.
· In June 2022, FDR UK completed a £1,125,000 pre-IPO fundraise with a
£3,000,000 pre-money valuation (Including £75,000 subscription from Power
Metal and £50,000 from Power Metal CEO Paul Johnson).
· Following a lithium specific review completed in June 2022, FDR UK
mobilised a field investigation team to conduct mapping and surface sampling
at identified lithium prospective targets.
North American Project Interests
Saskatchewan Uranium Properties
· The Company has completed an in-depth historical data compilation
across its entire Uranium Portfolio surrounding the prolific Athabasca Basin
and now possesses a robust fully digitised database covering all historical
work programmes completed across each asset.
Golden Metal Resources
· Golden Metal Resources continued to progress preparations for its
planned London listing, assisted by advisors across all related disciplines.
Alamo Project
· In June 2022 Power Metal received a further technical report in
respect of the Alamo Project work programme which is under review at present.
FINANCIAL HIGHLIGHTS FOR THE HALF YEAR ENDED 31 MARCH 2022
· Loss for the period, attributable to owners of the parent of £1.69
million (2021: £0.59 million), resulting in loss per share of 0.12 pence
(2021: 0.07 pence);
· Financing undertaken in November 2021 raising £1.05 million and
warrant and option exercises during the period raised £0.59 million for the
Company;
· Total assets of £9.24 million at the period end (30 September 2021:
£6.28 million); and
· Net assets of £8.01 million at the period end (30 September 2021:
£5.97 million).
This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law
by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is
disclosed in accordance with the Company's obligations under Article 17 of
MAR.
For further information please visit POW https://www.powermetalresources.com/
(https://www.powermetalresources.com/) or contact:
Power Metal Resources plc
Paul Johnson (Chief Executive Officer) +44 (0) 7766 465 617
SP Angel Corporate Finance (Nomad and Joint Broker)
Ewan Leggat/Charlie Bouverat +44 (0) 20 3470 0470
SI Capital Limited (Joint Broker)
Nick Emerson +44 (0) 1483 413 500
First Equity Limited (Joint Broker)
David Cockbill/Jason Robertson +44 (0) 20 7330 1883
Notes to Editors:
Power Metal Resources plc (LON:POW) is an AIM listed metals exploration
company which finances and manages global resource projects and is seeking
large scale metal discoveries.
The Company has a principal focus on opportunities offering district scale
potential across a global portfolio including precious, base, and strategic
metal exploration in North America, Africa, and Australia.
Project interests range from early-stage greenfield exploration to later-stage
prospects currently subject to drill programmes.
Power Metal will develop projects internally or through strategic joint
ventures until a project becomes ready for disposal through outright sale or
separate listing on a recognised stock exchange thereby crystallising the
value generated from our internal exploration and development work.
Value generated through disposals will be deployed internally to drive the
Company's growth or may be returned to shareholders through share buy backs,
dividends, or in-specie distributions of assets.
POWER METAL RESOURCES PLC
UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED 31 MARCH 2022
6 months 6 months Year
ended ended ended
31-Mar-22 31-Mar-21 30-Sep-21
(unaudited) (unaudited) (audited)
Note £'000 £'000 £'000
Revenue 198 17 37
Gross profit 198 17 37
Operating expenses (1,330) (660) (847)
Impairment - - (156)
Fair value gains through profit or loss (405) 66 445
Loss from operating activities (1,537) (578) (521)
Finance expense - - -
Share of post-tax losses of equity accounted joint ventures (175) (30) (102)
Loss before taxation (1,712) (607) (623)
Taxation - - -
Loss for the period from continuing operations (1,712) (607) (623)
Items that will or may be reclassified to profit or loss
Exchange translation 78 18 1
Total other comprehensive income 78 18 1
Total comprehensive expense for the period (1,634) (589) (622)
Loss for the period attributable to:
Owners of the parent (1,691) (589) (592)
Non-controlling interests (21) (18) (31)
(1,712) (607) (623)
Total comprehensive expense attributable to:
Owners of the parent (1,613) (571) (591)
Non-controlling interests (21) (18) (31)
(1,634) (589) (622)
Loss per share from continuing operations attributable to the ordinary equity
holder of the parent:
Basic (pence) 4 (0.12) (0.07) (0.05)
POWER METAL RESOURCES PLC
UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2022
31-Mar-22 (unaudited) 31-Mar-21 30-Sep-21
£'000 (unaudited) (audited)
Note £'000 £'000
Assets
Intangible assets 2,782 156 800
Investments in associates and joint ventures 156 366 166
Financial assets at fair value through profit or loss 3,539 2,157 3,527
Property, plant & equipment 22 3 2
Non-current assets 6,499 2,682 4,495
Financial assets at fair value through profit or loss 66 - 179
Assets classified as held for sale - - 153
Trade and other receivables 1,240 155 175
Cash and cash equivalents 1,435 1,967 1,281
Current assets 2,741 2,122 1,788
Total assets 9,240 4,804 6,283
Equity
Share capital 5 7,918 7,608 7,705
Share premium 21,871 17,400 18,437
Capital redemption reserve 5 5 5
Share based payments reserve 1,576 1,287 1,541
Foreign exchange reserve 150 89 72
Accumulated losses (23,179) (21,518) (20,448)
8,341 4,871 6,272
Non-controlling interests (327) (293) (306)
Total equity 8,014 4,578 5,966
Liabilities
Trade and other payables 1,226 226 317
Current liabilities 1,226 226 317
Total liabilities 1,226 226 317
Total equity and liabilities 9,240 4,804 6,283
POWER METAL RESOURCES PLC
UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 31 MARCH 2022
Share capital Share premium Capital redemption reserve Share based payment reserve £'000 Exchange reserve Accumulated losses Total Non-controlling interests £'000 Total Equity £'000
£'000
£'000
£'000
£'000
£'000
£'000
Balance at 1 October 2021 (audited) 7,705 18,437 5 1,541 72 (21,488) 6,272 (306) 5,966
Loss for the period - - - - - (1,691) (1,691) (21) (1,712)
Total other comprehensive expense - - - - 78 - 78 - 78
Total comprehensive expense for the period - - - - 78 (1,691) (1,613) (21) (1,634)
Issue of ordinary shares 213 3,496 - - - - 3,709 - 3,709
Cost of share issues - (62) - - - - (62) - (62)
Share-based payments - - - 35 - - 35 - 35
213 3,434 - 35 - - 3,682 - 3,682
Balance at 31 March 2022 (unaudited) 7,918 21,871 5 1,576 150 (23,179) 8,341 (327) 8,014
POWER METAL RESOURCES PLC
UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 31 MARCH 2021
Share capital Share premium Shares to be issued Capital redemption reserve Share based payment reserve £'000 Exchange reserve Accumulated losses Total Non-controlling interests £'000 Total Equity £'000
£'000
£'000
£'000
£'000
£'000
£'000
£'000
Balance at 1 October 2020 (audited) 7,286 14,910 22 5 1,286 71 (20,911) 2,669 (275) 2,394
Loss for the period - - - - - - (607) (607) (18) (625)
Total other comprehensive expense - - - - - 18 - 18 - 18
Total comprehensive expense for the period - - - - - 18 (607) (589) (18) (607)
Issue of ordinary shares 322 2,510 (22) - - - - 2,810 - 2,810
Cost of share issues - (20) - - - - - (20) - (20)
Share-based payments - - - - 1 - - 1 - 1
322 2,490 (22) - 1 - - 2,791 - 2,791
Balance at 31 March 2021 (unaudited) 7,608 17,400 - 5 1,287 89 (21,518) 4,871 (293) 4,578
POWER METAL RESOURCES PLC
UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2021
Share capital Share premium Capital redemption reserve Share based payment reserve £'000 Exchange reserve Retained Deficit Total Non-controlling interests £'000 Total Equity £'000
£'000
£'000
£'000
£'000
£'000
£'000
Shares to be issued
£'000
Balance at 1 October 2020 (audited) 7,286 14,910 5 1,286 71 (20,911) 2,669 (275) 2,394
22
Loss for the year - - - - - - (592) (592) (31) (623)
Total other comprehensive expense - - - - 1 - 1 - 1
-
Total comprehensive expense for the period - - - - 1 (592) (591) (31) (622)
-
Adjustment for previous year (19) 19 - - - - - - - -
Issue of ordinary shares 438 3,546 - - - - 3,962 - 3,962
(22)
Cost of share issues - (38) - - - - - (38) - (38)
Share-based payments - - - - 270 - - 270 - 270
Warrant exercises - - - - (15) 15 - -
419 3,527 (22) 5 255 - - 4,194 - 4,194
Balance at 30 September 2021 (audited) 7,705 18,437 5 1,541 72 (21,488) 6,272 (306) 5,966
-
POWER METAL RESOURCES PLC
UNAUDITED CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED 31 MARCH 2022
6 months 6 months Year
ended ended ended
31-Mar-22 31-Mar-21 30-Sep-21 (audited) £'000
(unaudited) (unaudited)
£'000 £'000
Cash flows from operating activities
Loss for the period (1,712) (607) (623)
Adjustments for:
- Fair value adjustment 405 3 (445)
- Share of post-tax losses of equity accounted joint ventures 175 29 102
- Fees settled in shares 378
- Share based payment expense 35 1 270
- Foreign exchange differences 78 - 1
- Impairment of intangible assets - - 156
(641) (574) (539)
Changes in working capital:
- Trade and other receivables (1,063) (45) (65)
- Trade and other payables 908 64 40
Net cash used in operating activities (796) (555) (564)
Cash flows from investing activities
Purchase of intangibles (295) - (528)
Investment in financial assets at fair value through profit or loss (321) (228) (2,184)
Investment in Joint Ventures (165) (951) (256)
Proceeds from investment disposals 171 - 261
Purchase of property, plant and equipment (20) (3) (2)
Net cash used in investing activities (630) (1,182) (2,709)
Cash flows from financing activities
Proceeds from issue of share capital 1,643 2,810 3,679
Issue costs (63) (20) (38)
Net cash flows from financing activities 1,580 2,790 3,641
Net increase/(decrease) in cash and cash equivalents 154 (1,054) 368
Cash and cash equivalents at beginning of period 1,281 913 913
Cash and cash equivalents at end of period 1,435 1,967 1,281
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL REPORT
1. Reporting entity
Power Metal Resources plc is a company domiciled in the United Kingdom. The
unaudited consolidated interim financial report of the Group as at and for the
period ended 31 March 2022 comprises the results of the Company and its
subsidiaries. The Group primarily is involved in the exploration and
exploitation of mineral resources in Australia, Botswana, Cameroon, the DRC,
and Tanzania.
2. Basis of preparation
(a) Statement of compliance
As permitted, IAS 34, 'Interim Financial Reporting' has not been applied in
this interim report.
The financial information presented in this interim report has been prepared
using accounting policies that are expected to be applied in the preparation
of the financial statements for the year ending 30 September 2022.
These policies are in accordance with the recognition and measurement
principles of International Financial Reporting Standards, International
Accounting Standards, and Interpretations (collectively IFRS) issued by the
International Accounting Standards Board as endorsed for use in the United
Kingdom, and these principles are disclosed in the Financial Statements for
the year ended 30 September 2021.
The interim results have been prepared on a going concern basis. The financial
information in this interim report does not constitute statutory accounts
within the meaning of Section 435 of the Companies Act 2006. The 2022 interim
financial report has not been audited.
The Annual Report and Financial Statements for 2021 have been filed with the
Registrar of Companies. The Independent Auditors' Report on the Annual Report
and Financial Statement for 2021 was unqualified and did not contain a
statement under 498(2) or 498(3) of the Companies Act 2006.
The interim results were approved by the Board of Directors on 27 June 2022.
(b) Judgements and estimates
Preparing the interim financial report requires Management to make judgements,
estimates and assumptions that affect the application of accounting policies
and the reported amounts of assets and liabilities, income, and expense.
Actual results may differ from these estimates.
In preparing this consolidated interim financial report, significant
judgements made by Management in applying the Group's accounting policies and
key sources of estimation uncertainty were the same as those that applied to
the consolidated financial statements as at and for the year ended 30
September 2021.
(c) Going concern
The interim financial report has been prepared on a going concern basis.
Although the Group's assets are not generating revenues, the Directors
believe, having considered all available information, including the Company's
proven ability to raise further equity funds from its supportive shareholder
base, that the Group will have sufficient funds to meet its expected committed
and contractual expenditure for the foreseeable future. Thus, the Directors
continue to adopt the going concern basis of accounting in preparing the
interim financial report for the period ended 31 March 2022.
3. Significant accounting policies
The accounting policies applied by the Group in this consolidated interim
financial report are the same as those applied by the Group in its
consolidated financial statements as at and for the year ended 30 September
2021.
4. Loss per share
Basic loss per share
The calculation of basic loss per share is based on the loss attributable to
ordinary shareholders of the parent of £1,691,000 (2021: £589,000), and a
weighted average number of ordinary shares in issue of 1,404,603,204 (2021:
896,967,375).
5. Issues of Equity
In October 2021, 15,578,947 shares were issued in relation to warrant
exercises; 10,000,000 were exercised at a price of 1.0 pence per share,
1,578,947 were exercised at a price of 0.75 pence per share and 4,000,000 were
exercised at a price of 0.70 pence per share.
On 1 November 2021, the company issued 13,333,333 new ordinary shares at a
price of 2.75 pence per share, for the initial consideration of the
acquisition of FDR Australia and the Wallal Main Licence, and a further
10,000,000 new ordinary shares at a price of 3.2 pence per share for the
acquisition of all other FDR Australia interests, to be transferred into FDR
Australia.
In November 2021, 1,500,000 shares were issued in relation to warrant
exercises; all of which were exercised at a price of 0.70 pence per share.
On 10 November 2021, the company issued 48,118,920 new ordinary shares in at
an issue price of 2.5 pence per share, to Thor Mining Plc for the acquisition
of the Pilot Mountain project in Nevada, held by Golden Metal Resources Plc.
In November 2021, the Company announced it had raised £1,050,000 through the
issue of 60,000,000 new ordinary shares of 0.1 pence each at an issue price of
1.75 pence per share, to enable the Company to accelerate business operations
including strategic exploration activities and corporate opportunities. Each
share had an attaching warrant to subscribe for a further new ordinary share
of 0.1 pence each, at an exercise price of 3.5 pence each with a two-year term
from the admission of the 60,000,000 placing shares.
In December 2021, 38,500,000 shares were issued in relation to warrant
exercises; all of which were exercised at a price of 0.70 pence per share.
On 19 January 2022 the company issued 2,499,999 new ordinary shares to acquire
two prospecting licences comprising the Tati Project, held by Tati Greenstone
Resources Pty Ltd (a subsidiary of the Company), at a price of 3.0 pence per
share.
On 31 January 2022, the company issued 4,000,000 new ordinary shares to Thor
Mining Plc an issue price of 2.5 pence per share, in respect of early
clearance of the tail benefit held by Thor Mining Plc on the Pilot Mountain
Project Nevada.
In February 2022, 16,113,929 shares were issued in relation to warrant
exercises; 11,113,929 were exercised at a price of 1.0 pence per share and
5,000,000 were exercised at a price of 0.75 pence per share.
On 3 February 2022 2,500,000 shares were issues in relation to option
exercises; all of which were exercised at a price of 1.0 pence per share.
At the period end, the Company had 1,466,953,915 Ordinary Shares in issue (30
September 2021: 1,254,808,787).
At the date of this interim report, the Company had 1,477,694,056 Ordinary
Shares in issue.
**Ends**
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