REG - Power Metal Res. - Interim Results
28/06/2024 07:00
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RNS Number : 2357U Power Metal Resources PLC 28 June 2024
28 June 2024
Power Metal Resources plc ("POW", "Power Metal" or the "Company")
Interim Results
Power Metal Resources plc (AIM:POW, OTCQB:POWMF), the London-listed
exploration company with a global project portfolio, announces its unaudited
interim results for the six month period ended 31 March 2024 (the "period").
Sean Wade, Chief Executive Officer of Power Metal commented: "Over the past
six months, we have continued to make positive developments across our project
portfolio, showcasing its value potential. The numerous agreements signed, and
discussions carried out with potential investors and joint venture partners,
emphasise the strong position Power Metal is in as it develops its projects,
which focus on key commodities in globally significant regions."
KEY DEVELOPMENTS IN THE HALF YEAR TO 31 MARCH 2024
- Raising of £1.3 million at a premium to the prevailing share
price, cornerstoned by UK-based high net worth investors and a strategic Saudi
Arabian investor;
- Following positive exploration work carried out at the Tati Gold
Project ("Tati"), located in Botswana, the Company recommenced field
operations at the project with six unique additional target areas being
identified for detailed soil sampling. The soil sampling assay results
confirmed the presence of three significant gold-in-soil geochemical
anomalies, proving further continuity within the 8km-long gold trend at Tati.
Of the 446 samples taken, three returned greater than 500 parts per billion
("ppb") gold ("Au") and an impressive 29 samples returned 100ppb Au or above;
- Radon gas sampling completed at the Tait Hill and Soaring Bay
projects, part of Power Metal's uranium portfolio located in and around the
prolific Athabasca Basin in Saskatchewan, Canada, confirmed multiple
significant uranium targets. Additionally, soil geochemical sampling, carried
out over the same targets, further demonstrated significant uranium
prospectivity and enabled refinement of potential drill targets;
- Power Metal also undertook Unmanned Aerial Vehicle ("UAV")
magnetic geophysics surveys covering the Clearwater and Cook Lake Projects
which generated multiple high-priority targets for future exploration;
- Disposal of Kavango Resources plc shares, raising £556,000.
Power Metal retains a 1% net smelter royalty return;
- High-level geophysical and geographical information system-based
desktop study completed at the Selta Project, operated by First Development
Resources plc, in which Power Metal holds a 58.59% interest. The study
significantly expanded the existing rare-earth element and lithium exploration
target area and generated new target areas;
- Signing of a non-binding Memorandum of Understanding ("MoU")
with the Ministry of Investment of the Kingdom of Saudi Arabia to explore the
possibility of joint collaboration efforts towards the identification and
realisation of high value-added investment opportunities;
- Commencement of a diamond drilling programme at the Molopo Farms
Complex nickel and platinum group element ("PGE") Project ("Molopo Farms") in
Botswana, targeting a steeply-dipping high-priority conductor at target area
T1-14;
- On behalf of the Company, Kalahari Key Mineral Exploration Pty
Ltd, received extension license documents from the Botswana Department of
Mines, for Prospecting Licence 310/2016 and PL311/2026 at Molopo Farms,
granting the Company the right to prospect for metals for a two-year period;
- Acquisition of the 31.09km2 Richards Lake uranium property,
located in the Athabasca Basin, via direct mineral claim staking;
- Signed Heads of Terms for the acquisition of a 75% interest in
GSA (Environmental) Limited, a privately owned UK-headquartered engineering
technology provider and process licensor, which specialises in the extraction
of strategic metals from 'secondary sources' including power station ash,
refinery waste, titanium dioxide waste and spent catalysts, while also
producing much more environmentally friendly residue;
- Establishment of Power Arabia Limited to encompass all of Power
Metal's activities across the Arabia Gulf, with several binding MoU's for
potential joint ventures in negotiation stages;
- Signing of Heads of Agreement to conditionally dispose of the
Company's entire 49.9% interest in New Ballarat Gold Corporation plc which
wholly owns Red Rock Australasia Pty Ltd, the local operating company holding
exploration interests in the Victoria Goldfields, Australia and in South
Australia, for consideration up to £1.5 million potentially payable in cash,
Red Rock Resources plc ordinary shares and warrants; and
- Binding earn-in agreement signed with RIWAQ Al-Mawarid for
Mining ("RIWAQ"), a special purpose subsidiary of EV Metals Group plc ("EVM")
focused on the development of the Saudi supply chain for critical raw
materials from the exploration, mining and processing of minerals and metals
in the Kingdom of Saudi Arabia. POW has the right to earn a 20% interest in
RIWAQ's 15 tenements by sole funding US$350,000 expenditure on the tenements
within 12 months from date of execution of the Binding Agreement, with a right
to a further 10% by sole funding US$150,000 within six months following
earning of 20% interest.
KEY DEVELOPMENTS SINCE 31 MARCH 2024
- Granted approval to trade on the OTCQB Venture Market in the US,
which commenced on 10 April 2024;
- Successful intersection of the targeted steeply dipping
geophysical superconductor at Molopo Farms on 23 April 2024;
- Acquisition of 75% of the issued share capital of GSA
(Environmental) Limited on 20 May 2024;
- Conditional agreement by ASX listed Aruma Resources Limited for
the full acquisition of NHMHA, which includes Power Metal's Wilan Project and
additional licences in Mt Isa region of Queensland, announced on 28 May 2024.
Power Metal owns 20% of NHMHA issued share capital and the agreement provides
Power Metal with exposure to uranium and copper exploration potential on the
ASX Markets;
- On 3 June 2024, Power Metal entered into a legally binding
subscription agreement with ACAM LP ("ACAM") for a £2 million investment in
Power Metal by way of a loan note with attaching warrants. The Company also
entered into an eight-week exclusivity period and a non-binding term sheet
with ACAM with the intention of forming a uranium-focused joint venture
involving Power Metal's entire portfolio of uranium licences; and
- As announced on 13 March 2024, Power Metal entered into a Heads
of Terms with Red Rock Resources Plc ("RRR"), the local operating company
holding exploration interests in the Victoria Goldfields, to sell its 49.9%
shareholding in New Ballarat Gold Corporation Plc ("NBGC"), which wholly owns
Red Rock Australasia Pty Limited ("RRAL"), in South Australia, for up to £1.5
million payable in cash, RRR ordinary shares and RRR warrants, subject to
various conditions precedent being met. On 12 June 2024, the conditions
precedent of the transaction were either fulfilled or waived. Accordingly,
completion of the disposal of the Company's 49.9% interest in NGGC, was
announced on 19 June 2024.
- On 19 June 2024, Power Metal announced that a share option
agreement ("Option" or the "Agreement") has been entered between Power
Metal, Tati Greenstone Resources PTY LTD ("TGR") a company incorporated
in Botswana held as a 100% owned subsidiary of Power Metal, and Tuscan
Holding PTY Ltd, ("Tuscan"), a company incorporated in
Botswana, (collectively the "Parties"). Subject to exercise of the Option,
Power Metal, through TGR, will retain a 25% interest free carried to
production in Prospecting Licence 049/2022 (which covers the Cherished Hope
Mine) and from which it is intended that TGR will become a material dividend
paying entity from net cash flow generated from gold production. Power Metal
will retain the right to a 100% interest in other prospecting licences held by
TGR other than PL049/2022.
- On 27 June 2024, the Company announced it completed a diamond
core drill hole, DDH1-14C, at Molopo Farms, to a depth of 832.6m. Drilling
successfully intersected the targeted steeply dipping geophysical
superconductor at the high priority Target Area T1-14. Significant sulphur
assays of up to 3.46% were identified alongside a sample which returned
anomalous nickel of 0.128%.
POWER METAL INTERESTS AT TODAY'S DATE
The latest updated review of Power Metal's business interests is provided in
the Company's investor presentation which may be accessed here:
https://www.powermetalresources.com/investors/presentation/
(https://www.powermetalresources.com/investors/presentation/)
In addition, a single page Business Overview is provided for investors through
the following link:
https://www.powermetalresources.com/company/
(https://www.powermetalresources.com/company/)
LATEST POSITION OF POWER METAL INTERESTS AND TARGETED OBJECTIVES FOR 2024
Priority Exploration and Potential Exploration Project Joint Ventures
Exploration Interest Latest Position & Forward Plans
Athabasca Uranium Power Metal currently holds 16 properties covering a total area of 914.714.
km(2) within and surrounding the prolific Athabasca Basin.
Saskatchewan, Canada
The discussions regarding the proposed JV of Power Metal's entire uranium
(Uranium) portfolio in and around the Athabasca Basin area are underway with ACAM and
continue in line with the announced eight-week exclusivity period.
POW: 100%
Various work programmes across the portfolio are being defined and ongoing
workstreams are being completed and analysed.
Molopo Farms Complex Project The cumulative exploration programmes undertaken at Molopo Farms, and the
commencement of the diamond drilling programme, have demonstrated significant
Botswana potential for a major nickel - platinum group element discovery or
discoveries.
(Nickel - Copper - Platinum Group Element)
The successful intersection at the high priority Target Area T1-14 confirms
POW: 87.71% the presence of the superconductor that was identified by multiple geophysical
surveys.
Significant sulphur assays of up to 3.46% were identified alongside a sample
which returned anomalous nickel of 0.128%.
Tati Project Following positive exploration work six additional target areas were
identified for detailed soil sampling.
Botswana
2024 geochemical soil sampling assay results confirmed the presence of three
(Gold - Nickel) significant gold-in-soil geochemical anomalies of greater than 500ppb gold. Of
the 446 samples collected, 29 samples returned assay results of 100ppb gold or
POW: 100% above.
The Cherish Hope Anomaly identified in the geochemical soil sampling results
represents a significant extension zone trending southwest from the original
Cherished Hope historical mine workings. The two further anomalies show the
potential for a significantly larger anomalous gold-in-soil footprint.
Commercial discussions regarding the potential for small-scale mining at the
Cherished Hope Gold Mine are ongoing, in parallel with continuing exploration
work.
The Company entered into a Share Option Agreement between Power Metal, Tati
Greenstone Resources PTY LTD, held as a 100% owned subsidiary of Power Metal,
and Tuscan Holding PTY Ltd. Subject to exercise of the Option, Power Metal,
through TGR, will retain a 25% interest free carried to production in
Prospecting Licence 049/2022 (which covers the Cherished Hope Mine) and from
which it is intended that TGR will become a material dividend paying entity
from net cash flow generated from gold production. Power Metal will retain the
right to a 100% interest in other prospecting licences held by TGR.
North Wind Project A total of 389 soil geochemical samples were taken following the exploration
programme completed in August 2023. Significantly, several pegmatites were
North America identified across North Wind, with five pegmatite samples collected - which
was a key ground exploration objective.
(Lithium)
Assay testing of these samples is ongoing with the results determining the
POW: 100% next steps of the work programme.
Investment Holdings and Disposals Planned/Underway
Note: other project packages within the Power Metal portfolio are also in
earlier stages of disposal and/or spin-out preparations in addition to those
listed below.
Business Interest Latest Position
First Class Metals plc (LON:FCM) FCM secured a listing on the London Stock Exchange in late July 2022 with
Power Metal holding an interest, following its IPO financing, of 28.19% on
Schreiber-Hemlo, Ontario, Canada listing (now c.26% after dilution since listing).
(Gold - Base Metals)
POW: c.23.24%
Golden Metal Resources plc (LON:GMET) GMET secured a listing on the London Stock Exchange in late May 2023 with
Power Metal holding an interest, following its IPO financing, of 62.06%.
Nevada, USA
Exploration work is ongoing at GMET's flagship Pilot Mountain Project with
Gold - Base Metals diamond drilling of key targets underway. Acceleration of development is being
considered using the current Mineral Resource Estimate. On 25 June 2024 547.6m
POW: c.49.53% of the planned 2,000m drilling programme had been completed with tungsten
mineralisation and the successful discovery of a porphyry system identified.
Assay testing results are pending and the drilled holes have the potential to
expand the deposit footprint towards both the north and south.
Exploration at the Garfield Project, to date, has included detailed
geochemical sampling and follow up analysis which highlighted the presence of
both porphyry and skarn-type mineralisation and alteration at the 'High-Grade
Zone'. Further to this, mapping, prospecting and rock sampling was recently
completed with results confirming the presence of high-grade copper, silver
and gold mineralisation, as well as leading to the bedrock discovery of the
Pamlico Gold Zone. Following the strategic raise of £506,250 GMET is fully
funded to continue the ongoing geophysical work programme along with follow up
drilling.
On the 24 June 2024 GMET changed its company name to Guardian Metal Resources
PLC, with the stock ticker remaining LON: GMET and OTCQB: GMTLF.
First Development Resources plc ("FDR") A high-level geophysical and geographical information system-based desktop
study has been completed at the Selta Project.
Western Australia /Northern Territory
The study significantly expanded the existing rare-earth element and lithium
(Gold - Copper - Rare Earth Elements - Uranium - Lithium) exploration target area and generated new target areas.
POW: c.59% An exploration strategy for Selta is being developed to systematically test
the identified targets.
FDR 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.
New Ballarat Gold Corporation plc ("NBGC") Power Metal signed a Heads of Terms Agreement to conditionally dispose of the
Company's entire 49.9% interest in New Ballarat Gold Corporation to JV
Victoria, Australia Partner, Red Rock Resources, for consideration up to £1.5 million potentially
payable in cash, Red Rock Resources ordinary shares and warrants. On 12 June
(Gold) 2024, the conditions precedent of the transaction were either fulfilled or
waived. Accordingly, completion of the disposal of the Company's 49.9%
POW: 0% interest in NGGC, was announced on 19 June 2024.
ION Battery Resources Ltd ("ION") ION holds 100% of the North Wind project (transfer completed in May 2023)
where lithium focused exploration is currently underway, together with 100% of
Canada Doerksen Bay graphite project and a project option to earn-in to the Authier
North/Duval East lithium project.
(Lithium & Graphite)
The next corporate steps for ION are to be determined following a review of
POW: 100% assay results from the North Wind summer exploration programme.
New Horizon Metals Pty Ltd ("NHM") Power Metal holds a 20% interest in NHM, which holds projects in Queensland
and South Australia, and is working towards a listing in the Australian
Queensland and South Australia capital markets.
(Copper - Uranium - Gold)
POW: 20%
Power Arabia Ltd Power Arabia Limited was established to encompass all of Power Metal's
activities across the Arabia Gulf, with several binding MoU's for potential
Kingdom of Saudi Arabia joint ventures in negotiation stages.
POW: 83% Power Arabia is currently undergoing a pre-IPO financing round to fund
activities in the region, with a view to a listing on the London capital
markets in due course.
Conversations are progressing with investors, both from the Gulf and
internationally, who have indicated significant interest in a
regionally-focused investment vehicle.
A binding earn-in agreement has been signed with RIWAQ Al-Mawarid for Mining,
a special purpose subsidiary of EV Metals Group plc, focused on the
development of the Saudi supply chain for critical raw materials from the
exploration, mining and processing of minerals and metals.
RIWAQ is the sole beneficial owner and sole registered holder of 15 tenements
in the Balthaga Suite in the south of the Arabian Shield, 13 are considered
protective for hard rock lithium, one for nickel sulphides, and one for a
copper/molybdenum porphyry system.
PROJECTS WITH NEXT STEPS UNDER CONSIDERATION
Project Latest Position & Key Forward Events
Haneti Project Power Metal continues to liaise with its partner to seek a new pathway for
advancement of the Haneti Project in Tanzania where the Company holds a 35%
Tanzania interest.
(Polymetallic)
POW: 35% (65% JV Partner Katoro Gold plc (LON:KAT))
Silver Peak Project The Company's 30% interest in the Silver Peak project remains as previously
stated and work is ongoing with its partners on the next commercial steps.
British Columbia, Canada
(Silver)
POW: 30%
FINANCIAL HIGHLIGHTS FOR THE HALF YEAR ENDED 31 MARCH 2024
- Loss for the period, attributable to owners of the parent of
£0.40 million (2023: £1.50 million), resulting in loss per share of 0.38
pence (2023: 1.78 pence);
- Financing undertaken in February 2024 raising £1.3 million;
- Total assets of £16.22 million at the period end (30 September
2023: £14.62 million); and
- Net assets of £15.38 million at the period end (30 September
2023: £13.99 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) 20 3778 1396
SP Angel Corporate Finance LLP (Nomad and Joint Broker)
Ewan Leggat/Caroline Rowe +44 (0) 20 3470 0470
Tamesis Partners LLP (Joint Broker)
Richard Greenfield/Charlie Bendon +44 (0) 20 3882 2868
BlytheRay (PR Advisors) +44 (0) 20 7138 3204
Tim Blythe/Megan Ray
NOTES TO EDITORS
Power Metal Resources plc - Background
Power Metal Resources plc (AIM:POW, OTCQB:POWMF) is a London-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, Saudi Arabia 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 2024
Note 6 months 6 months Year
ended ended ended
31-Mar-24 31-Mar-23 30-Sep-23
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
Revenue - 1 78
Gross profit - 1 78
Operating expenses (1,451) (1,016) (2,777)
Fair value gains/(losses) through profit or loss 1,050 (537) 1,604
Gain on disposal of joint venture - 48 -
Loss from operating activities (401) (1,504) (1,095)
Share of post-tax losses of equity accounted joint ventures (79) (108) (219)
Loss before taxation (480) (1,612) (1,314)
Taxation - - -
Loss for the period from continuing operations (480) (1,612) (1,314)
Items that will or may be reclassified to profit or loss:
Exchange translation - (171) 6
Total other comprehensive (expense)/ income - (171) 6
Total comprehensive expense for the period (480) (1,783) (1,308)
Loss for the period attributable to:
Owners of the parent (399) (1,495) (1,096)
Non-controlling interests (81) (117) (218)
(480) (1,612) (1,314)
Total comprehensive loss attributable to:
Owners of the parent (408) (1,629) (1,083)
Non-controlling interests (72) (154) (225)
(480) (1,783) (1,308)
Loss per share from continuing operations attributable to the ordinary equity
holder of the parent:
Basic and diluted loss per share (pence) 4 (0.38) (1.78) (1.19)
POWER METAL RESOURCES PLC
UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2024
Note 31-Mar-24 31-Mar-23 30-Sep-23
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
Assets
Intangible assets 5,503 9,438 4,947
Investments in joint ventures 281 278 290
Financial assets at fair value through profit or loss 1,186 469 1,161
Property, plant & equipment 12 40 8
Non-current assets 6,982 10,225 6,406
Financial assets at fair value through profit or loss 7,712 3,603 7,188
Assets classified as held for sale - 78 191
Trade and other receivables 1,065 287 481
Cash and cash equivalents 455 427 1,098
Current assets 9,232 4,395 8,958
Total assets 16,214 14,620 15,364
Equity
Share capital 5 8,664 8,190 8,531
Share premium 28,688 25,144 27,497
Capital redemption reserve 5 5 5
Capital contribution reserve - 2,322 -
Share based payments reserve 1,770 1,699 1,712
Foreign exchange reserve 94 (44) 103
Accumulated losses (24,632) (25,215) (24,276)
Total 14,589 12,101 13,572
Non-controlling interests 792 1,890 907
Total equity 15,381 13,991 14,479
Liabilities
Trade and other payables 833 629 885
Current liabilities 833 629 885
Total liabilities 833 629 885
Total equity and liabilities 16,214 14,620 15,364
POWER METAL RESOURCES PLC
UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 31 MARCH 2024
Share capital Share premium Capital redemption reserve £'000 Share based payment reserve Foreign Accumulated losses Total Non-controlling interests Total equity £'000
£'000
£'000
£'000
exchange reserve £'000 £'000 £'000
£'000
Balance at 1 October 2023 (audited) 8,531 27,497 5 1,712 103 (24,276) 13,572 907 14,479
Loss for the period - - - - - (399) (399) (81) (480)
Total other comprehensive expense - - - - (9) - (9) 9 -
Total comprehensive loss for the period - - - - (9) (399) (408) (72) (480)
Issue of ordinary shares 133 1,191 - - - - 1,324 - 1,324
Share based payments - - - 58 - - 58 - 58
Non-controlling interest adjustment - - - - - 43 43 (43) -
133 1,191 - 58 - 43 1,425 (43) 1,382
Balance at 31 March 2024 (unaudited) 8,664 28,688 5 1,770 94 (24,632) 14,589 792 15,381
POWER METAL RESOURCES PLC
UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 31 MARCH 2023
Share capital Share premium Capital redemption reserve £'000 Capital contribution Share based payment reserve Foreign Accumulated losses Total Non-controlling interests Total equity £'000
£'000
£'000
reserve
£'000
exchange reserve £'000 £'000 £'000
£'000
£'000
Balance at 1 October 2022 (audited) 8,065 23,312 5 2,322 1,638 90 (23,742) 11,690 2,066 13,756
Loss for the period - - - - - - (1,495) (1,495) (117) (1,612)
Total other comprehensive expense - - - - - (134) - (134) (37) (171)
Total comprehensive loss for the period - - - - - (134) (1,495) (1,629) (154) (1,783)
Issue of ordinary shares 125 1,878 - - - - - 2,003 - 2,003
Cost of share issues - (46) - - - - - (46) - (46)
Share based payments - - - - 61 - - 61 - 61
Non-controlling interest adjustment - - - - - - 22 22 (22) -
125 1,832 - - 61 - 22 2,040 (22) 2,018
Balance at 31 March 2023 (unaudited) 8,190 25,144 5 2,322 1,699 (44) (25,215) 12,101 1,890 13,991
POWER METAL RESOURCES PLC
AUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2023
Share capital Share premium Capital redemption reserve Capital contribution reserve Share based payment reserve Foreign Accumulated Total Non-controlling interests Total equity
exchange reserve losses
£'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 / (loss) 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
POWER METAL RESOURCES PLC
UNAUDITED CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED 31 MARCH 2024
6 months 6 months Year
ended ended ended
31-Mar-24 31-Mar-23 30-Sep-23 (audited)
(unaudited) (unaudited) £'000
£'000 £'000
Cash flows from operating activities
Loss for the period (480) (1,612) (1,314)
Adjustments for:
- Fair value adjustment (1,050) 537 (1,604)
- Share of post-tax losses of equity accounted 79 108 219
joint ventures
- Disposals 504 (47) (175)
- Expenses settled in shares 24 - 129
- Depreciation 3 2 5
- Foreign exchange differences 54 (150) (33)
- Share based payment expense 58 17 30
(808) (1,145) (2,743)
Changes in working capital:
- Trade and other receivables (84) (9) (169)
- Trade and other payables (105) (222) 797
Net cash used in operating activities (997) (1,376) (2,115)
Cash flows from investing activities
Investment in financial assets at fair value through profit or loss (3) - (291)
Investment in Joint Ventures - (194) -
Investments in associates (70) - (316)
Investments in intangibles (366) (408) (797)
Cash related to deconsolidated subsidiary - - (410)
Purchase of property, plant and equipment (7) (9) (8)
Net cash used in investing activities (446) (611) (1,822)
Cash flows from financing activities
Proceeds from issue of share capital 800 900 3,616
Shares issued to non-controlling interests by subsidiary - - 79
Issue costs - (46) (220)
Net cash flows from financing activities 800 854 3,475
Net (decrease) in cash and cash equivalents (643) (1,133) (462)
Cash and cash equivalents at beginning of period 1,098 1,560 1,560
Cash and cash equivalents at end of period 455 427 1,098
Details of significant non-cash transactions are disclosed in note 5.
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 for the period ended 31 March
2024 comprises the results of the Company and its subsidiaries (the
"Group"). The Group primarily is involved in the exploration and
exploitation of mineral resources in Africa, Australia, Canada and the US.
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 2024.
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 2023.
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 2024 interim
financial report has not been audited.
The Annual Report and Financial Statements for 2023 have been filed with the
Registrar of Companies. The Independent Auditors' Report on the Annual Report
and Financial Statement for 2023 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 26 June 2024.
(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 2023.
(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 2024.
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
2023.
4. Earnings 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 £399,000 (2023: £1,495,000), and a
weighted average number of ordinary shares in issue of 106,064,426 (2023:
84,071,550).
The weighted average number presented for the period ending 31 March 2023
above and the year ending 30 September 2023 in the statement of comprehensive
income have been adjusted for the effect of a 20 to 1 share consolidation.
5. Issues of Equity
In February 2024, the Company raised £1.3 million, before expenses, through
the issue of 130,000,000 new ordinary shares of 0.1p each in the company at an
issue price of 1 pence per share.
In March 2024, the Company consolidated its ordinary share capital resulting
in every 20 existing ordinary shares of 0.1p each being consolidated into 1
new ordinary share of 2p each. The number of shares prior to consolidation was
2,213,468,340.
At the period end, the Company had 110,673,417 Ordinary Shares in issue (30
September 2023: 2,080,106,256).
At the date of this interim report, the Company had 111,187,774 Ordinary
Shares in issue.
**Ends**
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