REG - Power Metal Res. - Interim Results
30/12/2024 07:00
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RNS Number : 5027R Power Metal Resources PLC 30 December 2024
30 December 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 unaudited
interim financial results for the six month period ending 30 September 2024,
in accordance with AIM Rule 17.
On 2 October 2024, the Company announced that that its accounting reference
date has been changed to 31 December, in order to provide the Company with
greater flexibility to complete its audit after those of its subsidiaries, a
significant number of which have year ends of 30 September. As a result, the
current accounting period was extended to 15 months, ending on 31 December
2024.
Following the 15 month period, future results will follow a standard timetable
of interim accounts for the six months to 30 June and full year audited
results to 31 December.
The Company expects to publish its audited accounts for the 15 months
ending 31 December 2024 in early June 2025 and by no later than 30 June
2025 in any event.
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)
Tim Blythe/Megan Ray +44 (0) 20 7138 3204
NOTES TO EDITORS
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.
POWER METAL RESOURCES PLC
UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2024
Note 6 months 6 months Year
ended ended ended
30-Sep-24 31-Mar-24 30-Sep-23
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
Revenue 526 - 78
Cost of sales (49) - -
Gross profit 477 - 78
Operating expenses (2,092) (1,451) (2,777)
Fair value gains through profit or loss 4,953 1,050 1,604
Profit/(Loss) from operating activities 3,338 (401) (1,095)
Share of post-tax losses of equity accounted joint ventures - (79) (219)
Profit/(Loss) before taxation 3,338 (480) (1,314)
Taxation 4 - - -
Profit/(Loss) for the period 3,338 (480) (1,314)
Items that will or may be reclassified to profit or (loss):
Exchange translation 41 - 6
Total other comprehensive income 41 - 6
Total comprehensive income/(expense) for the period 3,379 (480) (1,308)
Profit/(Loss) for the period attributable to:
Owners of the parent 3,431 (399) (1,096)
Non-controlling interests (93) (81) (218)
3,338 (480) (1,314)
Total comprehensive loss attributable to:
Owners of the parent 3,476 (408) (1,083)
Non-controlling interests (97) (72) (225)
3,379 (480) (1,308)
Profit/(Loss) per share from continuing operations attributable to the
ordinary equity holder of the parent:
Basic and diluted profit/(loss) per share (pence) 5 3.09 (1.78) (1.19)
POWER METAL RESOURCES PLC
UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 SEPTEMBER 2024
Note 30-Sep-24 31-Mar-24 30-Sep-23
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
Assets
Intangible assets 5,103 5,503 4,947
Investments in joint ventures 500 281 290
Financial assets at fair value through profit or loss 868 1,186 1,161
Right of use asset 68 - -
Property, plant & equipment 30 12 8
Non-current assets 6,569 6,982 6,406
Financial assets at fair value through profit or loss 13,087 7,712 7,188
Trade and other receivables 2,141 1,065 481
Inventory 25 - -
Cash and cash equivalents 877 455 1,098
Assets classified as held for sale 697 - 191
Current assets 16,827 9,232 8,958
Total assets 23,396 16,214 15,364
Equity
Share capital 6 8,674 8,664 8,531
Share premium 28,753 28,688 27,497
Shares to be issued 500 - -
Capital redemption reserve 5 5 5
Share based payments reserve 2,900 1,770 1,712
Foreign exchange reserve 139 94 103
Accumulated losses (21,199) (24,632) (24,276)
Total 19,772 14,589 13,572
Non-controlling interests 745 792 907
Total equity 20,517 15,381 14,479
Liabilities
Trade and other payables 1,266 833 885
Current lease liabilities 32 - -
Current borrowings 500 - -
Current liabilities 1,798 833 885
Non-current liabilities
Non-current lease liabilities 38 - -
Non-current borrowings 1,043 - -
Total non-current liabilities 1,081 - -
Total liabilities 2,879 833 885
Total equity and liabilities 23,396 16,214 15,364
POWER METAL RESOURCES PLC
UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2024
Share capital Share premium Shares to be issued Capital redemption reserve £'000 Share based payment reserve Foreign Accumulated losses Total Non-controlling interests Total equity £'000
£'000
£'000
£'000
£'000 exchange reserve £'000 £'000 £'000
£'000
Balance at 1 8,531 27,497 - 5 1,712 103 (24,276) 13,572 907 14,479
October 2023
(audited)
Profit/(loss) for the period - - - - - - 3,034 3,034 (174) 2,860
Total other comprehensive expense - - - - - 36 - 36 5 41
Total comprehensive income for the period - - - - - 36 3,034 3,070 (169) 2,901
Issue of ordinary shares 143 1,256 - - - - - 1,399 - 1,399
Shares to be issued - - 500 - - - - 500 - 500
Share based payments - - - - 1,188 - - 1,188 - 1,188
Non-controlling interest adjustment on step acquisition of subsidiaries - - - - - - - - 50 50
Non-controlling interest adjustment - - - - - - 43 43 (43) -
143 1,256 500 - 1,188 - 43 3,130 7 3,137
Balance at 30 September 2024 (unaudited) 8,674 28,753 500 5 2,900 139 (21,199) 19,772 745 20,517
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)/income - - - - (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
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 (audited) 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/(expense) - - - - - 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
(audited)
POWER METAL RESOURCES PLC
UNAUDITED CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2024
6 months 6 months Year
ended ended ended
30-Sep-24 31-Mar-24 30-Sep-23 (audited)
(unaudited) (unaudited) £'000
£'000 £'000
Cash flows from operating activities
Profit/(loss) for the period 3,338 (480) (1,314)
Adjustments for:
- Fair value adjustment (5,081) (1,050) (1,604)
- Share of post-tax losses of equity accounted - 79 219
joint ventures
- (Gain)/loss on disposals (100) 504 (175)
- Expenses settled in shares - 24 129
- Amortisation 14 - -
- Depreciation 2 3 5
- Finance costs 94 - -
- Foreign exchange differences 208 54 (33)
- Share based payment expense 85 58 30
(1,440) (808) (2,743)
Changes in working capital:
- Trade and other receivables (338) (84) (169)
- Trade and other payables 183 (105) 797
Net cash used in operating activities (1,595) (997) (2,115)
Cash flows from investing activities
Acquisition of subsidiary 387 - -
Investment in financial assets at fair value through profit or loss (188) (3) (291)
Investments in associates - (70) (316)
Investments in intangibles (164) (366) (797)
Cash related to deconsolidated subsidiary - - (410)
Purchase of property, plant and equipment - (7) (8)
Net cash generated from/(used in) investing activities 35 (446) (1,822)
Cash flows from financing activities
Proceeds from issue of share capital - 800 3,616
Shares issued to non-controlling interests by subsidiary - - 79
Issue costs - - (220)
Proceeds from borrowings 1,994 - -
Principal paid on lease liability (12) - -
Net cash flows from financing activities 1,982 800 3,475
Net increase/(decrease) in cash and cash equivalents 422 (643) (462)
Cash and cash equivalents at beginning of period 455 1,098 1,560
Cash and cash equivalents at end of period 877 455 1,098
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 six-month period ended
30 September 2024 comprises the results of the Company and its subsidiaries
(the "Group"). The Group primarily is involved in the exploration and
development of mineral resources in Africa, Australia and Canada.
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 31 December 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 28 December
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 30 September 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. Taxation
For the six months ended 30 September 2024, no income tax expense has been
recognised in the statement of profit or loss. It is expected that the Group
has sufficient tax losses carried forward from prior periods to offset the
taxable profits generated during the interim period. These carried forward tax
losses are expected to be utilised against taxable income for the full
financial year, if required.
5. Earnings per share
The calculation of basic earnings per share is based on the profit
attributable to ordinary shareholders of the parent of £3,431,000 (March 2024
loss: £399,000), and a weighted average number of ordinary shares in issue of
111,049,292 (March 2024: 84,071,550).
The calculation of diluted earnings per share is based on the profit
attributable to ordinary shareholders of the parent, and a diluted weighted
average number of ordinary shares of 144,023,616.
The weighted average number presented for the period ending 31 March 2024
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.
6. Issues of Equity
During the period, the Company issued 514,358 shares at a share price of
14.581 pence per share. The shares were issued for the acquisition of a 75%
holding in GSA (Environmental) Ltd.
At the period end, the Company had 111,187,774 ordinary shares in issue (31
March 2024: 110,673,416).
At the date of this interim report, the Company had 114,287,742 ordinary
shares in issue.
**Ends**
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