REG - Power Metal Res. - Audited Financial Results
21/02/2024 07:00
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RNS Number : 8372D Power Metal Resources PLC 21 February 2024
21 February 2024
Power Metal Resources plc
("Power Metal" or the "Company")
Audited Financial Results for the Year Ended 30 September 2023
Power Metal Resources plc (LON:POW) the London listed exploration company
seeking large-scale metal discoveries across its global project portfolio
announces its consolidated audited results for the year ended 30 September
2023, for the Company and its subsidiaries (together the "Group").
Introduction
The cyclical downturn in the mineral resource exploration sector continued
throughout the year under review, with increasing signs however that this
pressure may now be easing not least with the strong increases in the prices
of gold and uranium, two commodities of focus within the Company's portfolio.
The year saw the Company continue to focus on its business model of advancing
robust internal exploration programmes to seek major metal discoveries and
build underlying project value, whilst also looking in parallel for
significant value crystallisation through corporate activity to build the
value of the Company.
Exploration Activity
Athabasca Uranium Exploration
Power Metal currently has a 100% interest in 18 uranium properties covering
over 1000km(2) in the Athabasca Region of Saskatchewan, Canada. This is the
largest ground footprint in the Athabasca Region held by a UK listed
company.
Power Metal's technical team selected the Athabasca footprint by painstaking
review of historical exploration data from work conducted and paid for by
others, applying modern geological knowledge and techniques to identify what
we believe to be the best available ground. The ground was available either
because other explorers had relinquished their interests during the long-term
uranium bear market or because the geological opportunities the Company
identified had, at that stage, not been noted by others.
2023 saw the largest Athabasca uranium exploration programme ever undertaken
by the Company with significant early findings announced recently.
Our 2023 exploration programme has covered approximately 10 properties and to
date we have announced major exploration results from across the portfolio,
with further updates expected.
Africa Exploration
Tati Project
The 100% owned Tati Gold Project ("Tati") is centred on a historical gold
mine, Cherished Hope, and extensions of high-grade near surface gold
mineralisation were confirmed during drilling campaigns carried out by Power
Metal in 2021 and 2022.
Next stage exploration focused on geochemical soil sampling at Tati is now
complete. A total of 280 individual samples were collected across two grids:
• One high-resolution in-fill grid is focussed on
an area approximately 2km northwest of the historical Cherished Hope Gold Mine
and is centred on one point anomaly which historically returned an impressive
soil sample of 2.15g/t Au. To date, this anomaly has never been further
investigated to determine the provenance of this gold mineralisation; and
• The second grid covers the immediate
southwestern extension of Cherished Hope where individual point anomalies
returned a soil sample as high as 0.84g/t Au.
The soil samples have been sent to Intertek Genalysis in Perth, Western
Australia for assay and final results are awaited.
Site rehabilitation of the fines dumps covering Tati have been completed in
preparation for the next phase of exploration and development. This
rehabilitation work included removal of the fines dump and clearing the site
of material considered by Power Metal to be suitable for processing at a local
facility.
The Company has received inbound interest regarding the potential for
small-scale mining at its Cherished Hope Gold Mine area where near-surface
drilling results in 2022 returned bonanza gold up to 47.1g/t Au over 1m (from
6m downhole).
Molopo Farms Complex Project
During the year, Power Metal acquired an additional 58.7% interest in Kalahari
Key Mineral Exploration Pty Ltd, bringing its total interest to 87.71%.
Kalahari Key Mineral Exploration Pty Ltd is a Botswana-incorporated private
company, which holds a 100% interest in the Molopo Farms Complex Project.
Extensive exploration to date has confirmed the feeder zone geological model,
together with the presence of nickel sulphides and platinum group elements
("PGEs") through drilling as announced on 27 April 2023 which includes 2.3m @
0.56g/t Pt+Pd+Au & 0.17% Ni from DDH1-6B, and by aggregating and analysing
the extensive database of historical work has now identified the highest
profile conductor drill target to date.
Power Metal sees the potential for a district-scale nickel and PGE discovery
at Molopo and will undertake the next diamond drill programme with this
objective in focus.
North American Exploration
North Wind
The 100% Power Metal owned North Wind Lithium Project ("North Wind") is
considered by the Company to be prospective for the discovery of pegmatite
hosted lithium mineralisation. Lithium (Li)-caesium (Cs)-tantalum (Ta) bearing
pegmatite ("LCT-pegmatite") accounts for approximately a quarter of the
world's lithium production.
The exploration work programme first announced on 10 August 2023 is now
complete and a total of 389 soil geochemical samples were taken.
Significantly, several pegmatites were identified across North Wind, with five
pegmatite samples collected - which was a key ground exploration objective.
The mineralisation present within the identified pegmatites will be determined
during the assay testing process and based on interpretation of this data
further exploration steps will be determined.
Corporate Activity
Athabasca Uranium Corporate Activity
Power Metal announced the conditional disposal of the Reitenbach and E-12
properties into Teathers Financial Plc (soon to be renamed Uranium Energy
Exploration ("UEE")). Plans for an IPO of UEE are advancing.
The Company has also received third party interest across our uranium
portfolio and further commercial transactions are anticipated however
shareholders should note that there can be no certainty of any such
transactions being concluded.
Africa Corporate Activity
Third parties have expressed interest in both Tati and Molopo Farms Complex
projects and the Company is engaged in discussions to explore complementary,
joint venture and other project level partnerships.
Power Metal continues to liaise with our partner Katoro Gold plc to seek a new
pathway for advancement of the Haneti Project in Tanzania where the Company
holds a 35% interest.
North America Corporate Activity
Golden Metal Resources PLC ("GMET") successfully listed on the London Stock
Exchange in May 2023 with Power Metal holding an interest following their IPO
financing of 61.03%, worth c.£7.1 million as at the date of this report.
Power Metal also holds 1,749,378 warrants to acquire new GMET ordinary shares
at an exercise price of 10.75p per share and with an expiry date of 10 May
2024, and a further 1,749,378 warrants at an exercise price of 17.5p per share
and with an expiry date of 10 May 2025.
Power Metal's 100% owned ION Battery Resources Limited ("ION") holds 100% of
the North Wind project (transfer completed in May 2023) where lithium focused
exploration is currently underway, together with 100% of Doerksen Bay graphite
project and a project option to earn-in to the Authier North/Duval East
lithium project.
The next corporate steps for ION are to be determined following a review of
assay results from the North Wind summer exploration programme.
The Company's 30% interest in the Silver Peak project remains as previously
stated and we are working with our partners on the next commercial steps for
this important asset.
Australia Corporate Activity
Through its Australian operating subsidiary, Red Rock Australasia Pty Ltd,
NBGC has a substantial licence footprint within the Victoria Goldfields,
Australia, which is comprised of 17 granted exploration licences covering
1,867km(2) and 5 licence applications covering 493km(2). Power Metal is
working with its joint venture partner Red Rock Resources plc to expedite the
commercial success of this strategic Australian opportunity.
First Development Resources PLC ("FDR") holds strategic exploration projects
in Western Australia and the Northern Territory and is prepared for an IPO
listing which, subject to a return to normalised market conditions and final
regulatory approvals, can be undertaken at short notice. In Western
Australia FDR holds the Wallal Project which includes the Company's primary
target - the Eastern Anomaly, a magnetic bullseye target with a geophysical
signature similar to Greatland Gold's Havieron discovery in the Paterson
Region.
FDR has secured a c.£110k co-funding grant from the Western Australian
government as part of the Exploration Incentive Scheme to be set against the
costs of Wallal drilling and has received all the necessary local approvals
for the drilling to be undertaken. FDR has also agreed a contract with DDH1
Drilling Ltd to undertake the Phase I diamond drilling drill programme and has
prepared the access and the drill pad location in readiness for drilling.
Recognising this progress, the early commencement of drilling is being
considered alongside the work being undertaken to progress the IPO.
Finally, Power Metal holds a 20% interest in New Horizon Metals Pty Ltd, which
holds projects in Queensland and South Australia, and is working towards a
listing in the Australian capital markets.
Financial Review
Total comprehensive loss for the year to 30 September 2023 of £1.3 million
(2022: loss of £137k). The increase in loss from September 2022 is in part
due to the capital contribution balance recognised during the prior year. The
capital contribution balance arose on the completion of the capital
reorganisation of the Golden Metal Resources Plc group.
Pre-non-controlling interest total equity of £13.6 million at the year-end
(2022: £11.7 million).
Raised £3.6 million (before issue costs) in new equity financing during the
financial year, from a combination of new and existing shareholders, including
the Directors.
An additional £43.8k of cash received by the Company during the year from
exercises of Power Metal share warrants and £Nil cash received by the Company
during the year from exercises of Power Metal share options. £1.1 million of
shares were issued in relation to acquisitions in various investments and
projects.
The Company ended the financial year with a cash balance of £1.10 million
(2022: £1.56 million).
Cash balances held at the year-end are supplemented by listed company shares
and warrants (cash equivalents), which represent a further pool of accessible
cash available on the sale of shares in listed companies.
Corporate Social Responsibility ("CSR")
The Company maintains a focus on CSR through internal policies and our
approach to external operational activities.
During the year and after the year end the Company developed its internal
environmental, social and governance ("ESG") policies and procedures to codify
many of the practices in place at the Company and to introduce a number of new
initiatives.
The Company will continue to prudently invest in the regions in which we have
business activities, in support of the communities where we operate. As an
early-stage company, Power Metal is keen to employ workers from the areas in
which we operate, and to operate in a safe, responsible, and reasonable
manner.
As certain projects mature, we would expect our community engagement to become
more extensive in line with the level of operational activities.
Board Changes
In March 2023, Sean Wade was appointed to the Board as Chief Executive Officer
and Executive Director, replacing Paul Johnson.
In May 2023, Bill Brodie Good was appointed to the Board as Non-Executive
Director.
In January 2024, Owain Morton resigned from the Board as Non-Executive
Director.
Outlook
Power Metal continues to execute on its robust business model of
exploration/development project generation and advancement and value
crystallisation.
In addition to the multiple potential district scale exploration and
development projects currently within the portfolio, the Company continues to
seek new opportunities for shareholder value creation.
A number of such opportunities are currently in the pipeline and the Board
remains confident that with ongoing operations and also as junior resource and
commodity market conditions normalise, the Company is in an excellent position
to deliver value to shareholders.
Notice of Annual General Meeting and Distribution of Accounts to Shareholders
The Company's Annual General Meeting ("AGM") will take place at 10.00am on 26
March 2024 at Temple Chambers, 3-7 Temple Avenue, London, EC4Y ODT. The
Company's Annual Report and Accounts for the year ended 30 September 2023 will
be posted to shareholders this week. Copies of the Notice of AGM and the
Annual Report and Accounts will also be available on the Company's website
at www.powermetalresources.com (http://www.powermetalresources.com) in due
course.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2023
Note 2023 2022
£'000 £'000
Revenue 78 37
Gross profit 78 37
Operating expenses 4 (2,777) (3,127)
Fair value gains through profit or loss 1,604 309
Loss from operating activities (1,095) (2,781)
Share of post-tax losses of equity accounted joint ventures (219) (167)
Loss before tax (1,314) (2,948)
Taxation - -
Loss for the year from continuing operations (1,314) (2,948)
Other comprehensive (expense)/income
Items that will or may be reclassified to profit or loss:
Exchange translation 6 18
Items that will not be reclassified to profit or loss:
Capital contribution - 2,793
Total other comprehensive (expense)/income 6 2,811
Total comprehensive loss for the year (1,308) (137)
Loss for the period attributable to:
Owners of the parent (1,096) (2,256)
Non-controlling interests (218) (692)
(1,314) (2,948)
Total comprehensive (loss)/income attributable to:
Owners of the parent (1,083) 82
Non-controlling interests (225) (219)
(1,308) (137)
Earnings per share from continuing operations attributable to
the ordinary equity holder of the parent:
Basic and diluted loss per share (pence) 8 (0.06) (0.15)
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 SEPTEMBER 2023
2023 2022
Note £'000 £'000
Assets
Intangible assets 5 4,947 7,138
Investments in associates and joint ventures 290 402
Financial assets at fair value through profit or loss 1,161 1,620
Property, plant and equipment 8 33
Non-current assets 6,406 9,193
Financial assets at fair value through profit or loss 7,188 2,384
Trade and other receivables 6 481 346
Cash and cash equivalents 1,098 1,560
Assets classified as held for sale 191 1,124
Current assets 8,958 5,414
( )
Total assets 15,364 14,607
Equity
Share capital 7 8,531 8,065
Share premium 7 27,497 23,312
Capital redemption reserve 5 5
Capital contribution reserve - 2,322
Share based payment reserve 1,712 1,638
Exchange reserve 103 90
Accumulated losses (24,276) (23,740)
Total 13,572 11,692
Non-controlling interests 907 2,065
Total equity 14,479 13,757
Liabilities
Trade and other payables 9 885 850
Current liabilities 885 850
Total liabilities 885 850
Total equity and liabilities 15,364 14,607
The financial statements of Power Metal Resources PLC, company number
07800337, were approved by the board of Directors and authorised for issue on
20 February 2023.
CONSOLIDATED STATEMENT OF EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2022
Share capital Share premium Capital Capital contribution reserve Share based payment Reserve Exchange reserve Retained deficit Total Non-Controlling Interests Total Equity
Redemption Reserve
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Balance at 1 October 2021 7,705 18,437 5 - 1,541 72 (21,486) 6,274 (306) 5,968
Loss for the period - - - - - - (2,258) (2,258) (690) (2,948)
Other comprehensive income - - - - - 18 - 18 - 18
Capital contribution - - - 2,322 - - - 2,322 471 2,793
Total comprehensive income / (expense) for the period - - - 2,322 - 18 (2,258) 82 (219) (137)
Issue of ordinary shares 360 4,999 - - - - - 5,359 - 5,359
Costs of share issues - (124) - - - - - (124) - (124)
Share-based payments - - - - 101 - - 101 - 101
Warrant exercises - - - - (4) - 4 - - -
Non-controlling interest adjustment on step disposal of subsidiaries - - - - - - - - 2,590 2,590
Total transactions with owners 360 4,875 - - 97 - 4 5,336 2,590 7,926
Balance at 30 September 2022 8,065 23,312 5 2,322 1,638 90 (23,740) 11,692 2,065 13,757
CONSOLIDATED STATEMENT OF EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2023
Share capital Share premium Capital Redemption Reserve Capital contribution reserve Share based payment Reserve Exchange reserve Retained deficit Total Non-Controlling Interests Total Equity
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Balance at 1 October 2022 8,065 23,312 5 2,322 1,638 90 (23,740) 11,692 2,065 13,757
Loss for the period - - - - - - (1,096) (1,096) (218) (1,314)
Other comprehensive income - - - - - 13 - 13 (7) 6
Total comprehensive income / (expense) for the period - - - - - 13 (1,096) (1,083) (225) (1,308)
Issue of ordinary shares 466 4,405 - - - - - 4,871 - 4,871
Costs of share issues - (220) - - - - - (220) - (220)
Share-based payments - - - - 74 - - 74 - 74
Non-controlling interest adjustment on step acquisition of subsidiaries - - - - - - - - 99 99
Non-controlling interest adjustment on step disposal of subsidiaries - - - - - - 22 22 (22) -
Non-controlling interest adjustment on disposal of subsidiaries - - - (2,322) - - 538 (1,784) (1,010) (2,794)
Total transactions with owners 466 4,185 - (2,322) 74 - 560 2,963 (933) 2,030
Balance at 30 September 2023 8,531 27,497 5 - 1,712 103 (24,276) 13,572 907 14,479
CONSOLIDATED STATEMENT OF CASHFLOWS
AS AT 30 SEPTEMBER 2023
2023 2022
£'000 £'000
Cash flows used in operating activities
Loss for the year from continuing activities (1,314) (2,948)
Adjustments for:
Fair value adjustments (1,604) (309)
Share of post-tax losses of equity accounted joint ventures 219 167
Expenses settled in shares 129 -
Disposals of financial assets (175) 245
Depreciation 5 -
Foreign exchange differences (33) 101
Share-based payment expense 30 11
(2,743) (2,733)
Changes in working capital:
Increase in trade and other receivables (169) (250)
Increase in trade and other payables 797 477
Net cash used in operating activities (2,115) (2,506)
Cash flows from investing activities
Purchase of financial assets at fair value through profit or loss - (426)
Investments in financial assets through P&L (291) -
Investment in joint ventures - (188)
Investments in associates (316) -
Investments in intangibles (797) (1,530)
Cash relating to deconsolidated subsidiary (410) -
Purchase of property, plant, and equipment (8) (32)
Net cash outflows from investing activities (1,822) (2,176)
Cash flows from financing activities
Proceeds from issue of share capital 3,616 3,211
Shares issued to non-controlling interests by subsidiaries 79 1,875
Issue costs (220) (125)
Net cash inflows from financing activities 3,475 4,961
(Decrease)/increase in cash and cash equivalents (462) 279
)
Cash and cash equivalents at beginning of year 1,560 1,281
Cash and cash equivalents at 30 September 1,098 1,560
Significant non-cash transactions during the year
During the year, the Group acquired intangible assets, either directly or
indirectly via subsidiary undertakings and investments in subsidiaries,
totalling £1,146k via the issue of ordinary shares.
Power Metal disposed of its investment in Kanye Resources Pty Ltd during the
year, which was previously held for sale. In consideration, the Company
received shares and warrants in Kavango Resources PLC to the value of
£1,114k.
On 10 May 2023, Golden Metal Resources PLC ("GMET") listed on the AIM market
of the London Stock Exchange, resulting in a dilution of POW's shareholding
leading to a disposal of the subsidiary investment during the year. On the IPO
date, Power Metal disposed of the subsidiary investment and recognised a
financial asset, including an uplift in fair value.
NOTES TO THE CONSOLODATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
1. Reporting entity
Power Metal Resources PLC is a public company limited by shares which is
incorporated and domiciled in England and Wales. The address of the Company's
registered office is 201 Temple Chambers, 3-7 Temple Avenue, London, EC4Y 0DT.
The consolidated financial statements of the Group as at and for the year
ended 30 September 2023 include the Company and its subsidiaries. The Group is
primarily involved in the exploration and exploitation of mineral resources in
Africa, Australia, Canada and the US.
2. Going concern
The financial statements are prepared on a going concern basis. In assessing
whether the going concern assumption is appropriate, the Directors have
considered all relevant available information about the current and future
position of the Group, including current level of resources, additional
funding raised during the year and post-year-end, and the required level of
spending on exploration and drilling activities. As part of their assessment,
the Directors have also taken into account the ability to raise new funding
whilst maintaining an acceptable level of cash flows for the Group to meet all
commitments.
The Directors have stress tested the Group's cash projections, which involves
preserving cash flows and adopting a policy of minimal cash spending for a
period of at least 12 months from the date of approval of these financial
statements. The Directors believe the measures they have put in place will
result in sufficient working capital and cash flows to continue in operational
existence, assuming that all exploration and drilling activities are managed
carefully and curtailed if necessary. For the Group to carry out the desired
levels of exploration and drilling activities, the Directors believe that it
needs to secure further funding either from a strategic partner or subsequent
equity raisings in the next financial year, which the Group has succeeded in
completing over recent years. The Group also has the ability to partially
dispose of equity investments if required. Taking these matters in
consideration, the Directors continue to adopt the going concern basis of
accounting in the preparation of the financial statements.
The financial statements do not include the adjustments that would be required
should the going concern basis of preparation no longer be appropriate.
3. Intangible assets - Prospecting and exploration
rights
Rights acquired with subsidiaries are recognised at fair value at the date of
acquisition. Other rights acquired and development expenditure are recognised
at cost.
Exploration and evaluation costs arising following the application for the
legal right, are capitalised on a project-by-project basis, pending
determination of the technical feasibility and commercial viability of the
project. When a project is deemed not feasible, related costs are expensed as
incurred. Costs incurred include any costs pertaining to technical and
administrative overheads. Administration costs that are not directly
attributable to a specific exploration area are expensed as incurred, and
subsequently capitalised if it is reasonably certain that a resource will be
defined. Capitalised development expenditure will be measured at cost less
accumulated amortisation and impairment losses.
4. Operating expenses
Operating expenses include: 2023 2022
£'000 £'000
Staff costs 957 960
Foreign exchange loss 62 11
Share based payment expense 31 70
(Gain)/Loss on disposal (175) 180
Auditor's remuneration for audit of the Group and Company financial statements 36 29
5. Intangible assets
Group Prospecting and exploration rights
£'000
Cost
As at 30 September 2021 1,926
Reclassification from financial assets 136
Reclassification to assets held for sale (993)
Additions 7,186
Effect of foreign exchange 9
Balance at 30 September 2022 8,264
As at 30 September 2022 8,264
Reclassification from financial assets 878
Reclassification to assets held for sale (60)
Reclassification from associate 209
Additions 2,067
Disposal (5,035)
Subsidiary sale of shares (79)
Effect of foreign exchange (171)
Balance at 30 September 2023 6,073
Impairment
As at 30 September 2021 1,126
Balance at 30 September 2022 1,126
As at 30 September 2022 1,126
Charge -
Balance at 30 September 2023 1,126
Net book value
At 30 September 2022 7,138
At 30 September 2023 4,947
During the year, the Group's direct interest in the Garfield, Stonewall,
Golconda Summit & Pilot Mountain Projects was disposed of. The Group
acquired additional intangible assets in Molopo Farm and North Wind, see
below:
2023 2022
£'000 £'000
Intangible assets
Athabasca Uranium Project 349 175
Authier North Project 74 16
Canadian Graphite Project 137 99
Tati Gold-Nickel Project 384 359
Garfield, Stonewall, Golconda Summit & Pilot Mountain Projects - 4,865
Wallal, Braeside West, Selta & Ripon Hill Projects 1,692 1,624
Molopo Farm Project 2,276 -
North Wind Project 35 -
Total 4,947 7,138
The Directors regularly assess the carrying value of the Group's assets,
including its prospecting and exploitation rights, and write off any
exploration expenditure that they believe to be irrecoverable.
Athabasca Uranium Project
As at 30 September 2023, the Group held 17 properties covering 1000km(2) in
the Athabasca Region of Saskatchewan, Canada. This is the largest ground
footprint in the Athabasca Region held by a UK listed company.
The conditional disposal of two properties held at the Athabasca project were
announced previously; Reitenbach, in August 2022 and E-12 in November 2022.
Work is still in process to complete the transaction through a listing on the
London capital markets for the proposed holding vehicle, Teathers Financial
PLC, to be renamed Uranium Energy Exploration PLC ("UEE"). The two properties
were moved to assets held for sale in the statement of financial position as
at 30 September 2022. Since then, considerable progress has been made on the
structure of the transaction and the advancement of the assets, a key
component of which has been the successful completion of a pre-IPO financing
which was announced on 13 December 2023.
Authier North Project
In July 2023, Power Metal announced the early completion of its earn-in to a
100% interest in Authier North. The Authier North Property consists of 15
mineral claims covering an area of approximately 560 hectares and is
prospective for lithium pegmatites and base metal mineralisation.
Canadian Graphite Project
In January 2023, Power Metal announced the acquisition of the 4,222-hectare
Doerksen Bay Graphite Project located in Saskatchewan, Canada. Power Metal
transferred its interest into newly formed 100% subsidiary ION Battery
Resources Limited ("ION"). The project gives exposure to the exciting graphite
space, a key component in new age battery technology. The Project is centred
around five Saskatchewan Mineral Deposit Index graphite occurrences including
the Ben, Ben North, Bear Bones, Brabant Lake and Doerksen Bay showings.
Tati Gold-Nickel Project
In September 2022, the Company announced the completion of 490m of RC drilling
over 9 holes and the successful intersection of quartz reef in all holes
drilled, with multiple holes intersecting multiple sub-parallel quartz reef
structures. Further 2023 geochemical soil sampling assay results confirmed two
significant gold-in-soil geochemical anomalies and continuity within the 8km
gold trend at Tati. Six unique additional target areas have been identified
for detailed soil sampling which is expected to include a total of c. 450
individual soil samples for follow on accredited laboratory gold assay
testing. Further sampling at this target area will be focussed on in-fill as
well as step-out sampling to better understand the size and orientation of
this priority zone.
Garfield, Stonewall, Golconda Summit and Pilot Mountain Projects
On 10 May 2023, Golden Metal Resources PLC ("GMET") listed on the AIM market
of the London Stock Exchange, relating in a dilution of POW's shareholding
leading to a disposal of the subsidiary investment during the year. POW's
interests in the projects were therefore disposed of, and the investment in
GMET was subsequently recognised as a financial asset.
Wallal Project, Ripon Hills, Braeside Project and Selta Project
First Development Resources Pty Ltd ("FDR Pty"), a 100% subsidiary of First
Development Resources PLC ("FDR"), holding the Wallal licences, located in the
Paterson Province of Western Australia. The Wallal project covers an area of
572km(2) and is the Group's primary focus in the region. It is of particular
interest due to a number of geophysical anomalies which have been identified
following the completion of an in-depth study which included the reprocessing
of historic seismic data along with the analysis of historic magnetic and
gravity geophysical surveys.
Pardoo Resources Pty Ltd ("Pardoo") and RH Resources Pty Ltd ("RH Pty"), both
100% subsidiaries of FDR, hold the fully licenced Ripon Hills and Braeside
West Projects which cover a combined area of approximately 300km(2). The
tenements are located approximately 250 km southeast of Port Hedland on the
western edge of the Paterson Province in Western Australia. The projects are
located on the western and eastern limbs of the Oakover Syncline. The area is
primarily prospective for manganese, similar to the nearby Woodie Woodie
manganese mine, as well as base-metal and gold mineralisation associated with
deep seated north to north-westerly trending fault structures. These fault
structures have the potential to be conduits for various styles of
hydrothermal mineralisation as evidenced by recent exploration conducted by
ASX listed Rumble Resources Limited on land adjacent to the Braeside West
tenement.
URE Metals Pty Ltd ("URE") a 100% subsidiary of FDR PLC, holds the Selta
Project. The Selta Project in the Northern Territory is located in an area
considered highly prospective for uranium and Rare Earth Element
mineralisation along with base and precious metal mineralisation. Numerous
companies are actively exploring within the region. The Selta project is
comprised of three granted exploration licences and covers a total land area
of almost 1,600km(2). The project borders ASX listed Prodigy Gold and Canadian
listed Megawatt Lithium and Battery Metals Corporation; and is less than 70km
northwest of Arafura's Resources high-grade, world-class Nolans Bore REE
deposits
Molopo Farms Complex Project
In November 2022, Power Metal acquired an additional 58.7% equity stake in
private company Kalahari Key Mineral Exploration Pty Limited ("KKME"), taking
the Company's holding to 87.71%. KKME is a Botswana registered exploration
company with a 100% interest in the 1,723km(2) Molopo Farms Complex Project
("MFC").
At the MFC, Power Metal is targeting a district-scale nickel and platinum
group element discovery. On 6 October 2023 the Company announced that its
recently completed geophysical inversions led to the identification of the
highest priority conductor to date at the Project within target area T1-14.
The Company has further advanced plans to drill test the target at T1-14 with
follow up analysis determining up to two areas to optimally test this
conductor.
North Wind Project
The North Wind Lithium project was originally staked by Power Canada Inc. in
November 2022, the project transferred to ION, both companies are 100%
subsidiaries of Power Metal. The project is targeting a significant lithium
discovery; the Group is currently awaiting assay results from 2023 field
exploration.
6. Trade and other
receivables
Group 2023 2022
£'000 £'000
Accounts receivable 31 123
Other receivables 366 149
Prepayments 84 74
Trade and other receivables 481 346
7. Share capital
Number of ordinary
shares
2023 2022
Ordinary shares in issue at 1 October 1,614,654,921 1,254,808,787
Issued for cash 383,673,949 137,142,857
Issued in settlement for acquisitions 60,093,043 222,703,277
Issued in lieu of expenses 21,684,343 -
In issue at 30 September - fully paid (par value 0.1p) 2,080,106,256 1,614,654,921
Number of deferred
shares
2023 2022
Deferred shares in issue at 1 October 3,628,594,957 3,628,594,957
In issue at 30 September 3,628,594,957 3,628,594,957
Ordinary
share capital
2023 2022
£'000 £'000
Balance at beginning of year 8,065 7,705
Share issues 466 360
Balance at 30 September 8,531 8,065
Share Premium
2023 2022
£'000 £'000
Balance at beginning of year 23,312 18,437
Share issues 4,405 4,999
Expenses relating to share issues (220) (124)
Balance at 30 September 27,497 23,312
All ordinary shares rank equally with regard to the Company's residual assets.
The holders of ordinary shares are entitled to receive dividends as declared
from time to time and are entitled to one vote per share at meetings of the
Company.
Both classes of deferred shares (Deferred and Deferred A), do not entitle the
holders thereof to receive notice of or attend and vote at any general meeting
of the Company or to receive dividends or other distributions or to
participate in any return on capital on a winding up unless the assets of the
Company are in excess of £1,000,000,000,000. The Company retains the right
to purchase the deferred shares from any shareholder for a consideration of
one penny in aggregate for all that shareholder's deferred shares. As such,
the deferred shares effectively have no value. Share certificates will not
be issued in respect of the deferred shares.
Issue of ordinary shares
In November 2022, the Company acquired an additional 58.7% interest in
Kalahari Key Mineral Exploration Pty Limited. The consideration of £807,348
was payable through the issue of 46,134,171 new ordinary shares of 0.1p each
in the Company at a price of 1.75p per new ordinary share and warrants over
46,134,171 new Ordinary Shares at a 3.5p exercise price.
In January 2023, the Company acquired 100% of the Canadian Graphite Project
for £37,500. Consideration was payable through the issue of 2,500,000 Power
Metal new ordinary shares of 0.1p each at an issue price of 1.5p per share.
In January 2023, the Company raised £900,000 before expenses through the
issue of 64,285,714 new ordinary shares of 0.1p each ("Financing Shares") at
an issue price of 1.4p per share. Each Financing Share has an attaching
warrant to subscribe for one new ordinary share of 0.1p each in the Company at
an exercise price of 2.0p per share with a 24-month term from 30 January 2023
creating 64,285,714 financing warrants.
In March 2023, the Company issued 11,458,872 ordinary shares at an issue price
of 2.25p for settlement of the drill contract with Mindea Exploration &
Drilling Services (Pty) at the Molopo Farms Complex Project.
In May 2023, the Company raised £2.175m before expenses through the issue of
319,388,235 new ordinary shares of 0.1p each ("Placing Shares") at an issue
price of 0.85p per share. Each Placing Share has an attaching warrant to
subscribe for one new ordinary share of 0.1p each in the Company at an
exercise price of 2.0p per share with a 5-year term expiring 9 May 2028.
In May 2023, the Company received notice to exercise warrants over 6,250,000
new ordinary shares of 0.1p each at an exercise price of 0.7p per warrant
share, raising an additional £43,750 for the Company.
In July 2023, the Company issued 9,208,951 ordinary shares at an issue price
of 0.71p per share in lieu of fees incurred with advisors. 3,541,904 shares
were issued to SP Angel Corporate Finance LLP, the Company's nominated adviser
and joint broker, in lieu of fees to the value of £25,000. The remaining
5,667,047 shares were issued to another corporate adviser in lieu of fees for
a total value of £40,000.
In July 2023, the Company negotiated early completion of its Authier North
Lithium Project Earn-In, acquiring 100% interest in the Project. Consideration
of CAD$75,000 (£43,941) was settled through the issue of 6,225,392 new
ordinary shares of 0.1p at an issue price of 0.71p.
8. Earnings per share
Basic and diluted loss per share
Basic earnings per share is calculated by dividing the profit attributable to
equity holders of the Company by the weighted average number of ordinary
shares in issue during the year.
Group 2023 2022
Loss attributable to equity holders of the parent (1,096,881) (2,257,872)
Weighted average number of ordinary shares in issue 1,842,111,876 1,457,507,624
Basic and diluted loss per ordinary share (pence) (0.06) (0.15)
The basic and diluted earnings per share are the same given the loss for the
year, making the outstanding share options and warrants anti-dilutive.
9. Trade and other
payables
Group 2023 2022
£'000 £'000
Trade payables 343 686
Other Payables 35 -
Other taxation and social security 54 -
Accrued expenses 453 164
Trade and other payables 885 850
Company 2023 2022
£'000 £'000
Trade payables 236 329
Other Payables 35 -
Other taxation and social security 56 -
Accrued expenses 360 164
Payable to group undertakings - 24
Trade and other payables 687 517
10. Subsequent events
On 3 October 2023, the Company issued 1,293,103 new ordinary shares of 0.1
pence, at a price of 0.725 pence per share ("Fee Shares") to SP Angel
Corporate Finance LLP, the Company's nominated adviser and joint broker, in
lieu of fees incurred to the value of £9,375. A further 2,068,965 Fee Shares
were issued to a professional services provider in lieu of fees incurred to
the value of £15,000.
On 6 November 2023, Power Metal announced the disposal of its entire holding
of 69,500,000 shares of Kavango Resources Plc ("Kavango"), at a price of 0.8p
per share, raising cash of £556,000 for the Company. Power Metal retained its
60,000,000 warrants to subscribe for new Kavango shares with 30,000,000
warrants at an exercise price of 4.25p and 30,000,000 warrants at an exercise
price of 5.5p, both with an expiry date of 8 January 2025. In addition, Power
Metal holds a 1% net smelter return royalty ("NSR") in respect of the project
licence footprint in the Kalahari Copper Belt and Ditau Camp projects
previously held in joint venture with Kavango.
On 16 January 2024, Owain Morton, Non-Executive Director, stepped down from
the board with immediate effect.
On 31 January 2024, Power Metal announced the issuance of 130,000,000 new
ordinary shares of 0.1 pence each at an issue price of 1.0 pence per ordinary
share, representing a premium of approximately 3.09 per cent. The share issue
resulted in a total raise of £1.3 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 https://www.powermetalresources.com/
(https://www.powermetalresources.com/) or contact:
Power Metal Resources plc
Sean Wade (Chief Executive Officer) +44 (0) 7464 609 025
SP Angel Corporate Finance (Nomad and Joint Broker)
Ewan Leggat/Caroline Rowe/Harry Davies-Ball +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 - Background
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.
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
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