REG - Power Metal Res. - Results for the Period Ended 31 December 2024
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RNS Number : 8571O Power Metal Resources PLC 30 June 2025
30 June 2025
Power Metal Resources plc
("Power Metal" or the "Company")
Audited Financial Results for the Period Ended 31 December 2024
Power Metal Resources plc (AIM:POW) the London listed exploration company
with a global project portfolio announces its consolidated audited results for
the 15-month period ended 31 December 2024, for the Company and its
subsidiaries (together the "Group").
Introduction
Despite the numerous headwinds facing the mineral resource sector in the
period under review, ended 31 December 2024 (the "Period"), our corporate and
operational achievements have continued to demonstrate the strengths and
versatility of our project incubator model, with exposure to multiple
commodities and jurisdictions enabling crystallisation events and value
realisation opportunities across the breadth of our portfolio.
With a more positive sentiment around the industry beginning to emerge, we
remain confident that the underlying project value we've generated during this
period will further yield positive outcomes for the Company.
Operational Activity
North America
Power Metal Resources Plc ("Power Metal" or the "Company"), before and after
the successful completion of its Joint Venture with UCAM Ltd for the Company's
entire uranium portfolio, undertook an extensive exploration programme across
its licences.
These workstreams included helium, hydrogen, radon and soil geochemistry
sampling, as well as magnetic and radiometric airborne surveys. At Perch
River, this work culminated in the definition of a new target area, named the
'Rapids Target', which consists of multiple overlapping geochemical and radon
anomalies located within a geological and geophysical setting that is highly
prospective for unconformity-hosted uranium mineralisation. Similarly
prospective targets have been identified at other licences from systematic
fieldwork during the Period, with work ongoing to further establish the
targets for drilling programmes across the portfolio. Post Period end, a
drilling permit was received for a seven to eight-hole diamond drill programme
at Perch River, due to commence in Q3 2025.
Arabian Shield
The 15 months under review saw the commencement and advancement of Power
Metal's activities in the Arabian Shield. Through its majority-owned
subsidiary, Power Arabia Limited ("Power Arabia"), the Company has brought its
proven and successful project incubator model to major exploration
opportunities in the Kingdom of Saudi Arabia ("Saudi Arabia" or the "Kingdom")
and Oman.
Following the signing of a mutually binding earn-in agreement with RIWAQ
Al-Mawarid for Mining ("RIWAQ"), an initial field exploration programme on the
Balthaga Lithium Project, Saudi Arabia, was successfully completed. The team
on the ground covered the 13 licences that comprise the Balthaga Project area,
and visited nearly every defined target, providing us with a much better
understanding of the geology. The majority of the identified targets proved
fruitful, with some new targets also discovered.
On Block 8 in Oman, the exploration work undertaken by the Power Arabia
technical team to date was conducted during October, November and December
2024, including two phases of stream sediment sampling; geological outcrop
mapping and rock sampling; an ionic leach soil geochemical sampling
orientation study; trenching on the Al Mansur target; and the planning of a
proposed gravimetric geophysics survey and sourcing of a geophysical
contractor. Positive assay and gravimetry results were received and reported
post Period end.
GSA (Environmental) Limited ("GSAe"), in which Power Metal acquired a 75%
stake in the first half of 2024, advanced a number of projects during the
Period. Working with a state-owned company in Saudi Arabia, GSAe progressed an
initial study to process fly ash, primarily for the extraction of vanadium and
nickel. This work involved detailed bench scale analysis, combined with
initial process flow and plant design drawings, and preliminary financial
calculations for plant construction and operations. As part of this
commission, GSAe also tested samples from historic fly ash landfill sites to
provide initial solutions for the processing and extraction of critical
metals, and resultant cleaning of such sites. GSAe has successfully carried
out numerous other studies and analyses in collaboration with respected firms
in the UK, Europe and Saudi Arabia.
Africa
Power Metal has a 100% interest in three prospecting licences which form the
91.14km(2) Tati Project, where the Company is targeting gold and nickel
discoveries. During the Period, Power Metal announced geochemical soil
sampling assay results, which confirmed the presence of three significant
gold-in-soil geochemical anomalies, proving further continuity within the
8km-long gold trend at Tati. Each stage of work at Tati has delivered
extremely positive findings, and we are confident that the project holds
significant value for the Company.
In October 2023, Power Metal announced the identification of the highest
priority drill target to date at its 87.70% held Molopo Farms Complex Project
in Botswana. Accordingly, the Company confirmed that it had advanced plans to
drill test this significant target, which was achieved in the first half of
2024. The drill hole, which was completed to a final depth of 832.6 metres,
successfully intersected the steeply dipping geophysical superconductor - the
primary objective of the programme.
The definition and proof of this difficult target, alongside the significant
exploration data gathered to date, offers an indication of Molopo Farms'
potential to host a district-scale deposit. The Company is continuing its
efforts to seek a joint venture partner for the project.
Australia
During the Period, First Development Resources Plc ("FDR"), in which Power
Metal holds a 58.60% interest, received the findings of a high-level
geophysical and geographical information system-based desktop study on the
Selta Project's mineral exploration potential and prospectivity.
The findings enabled a significant expansion of the existing rare-earth
element and lithium exploration target area, and generation of new target
areas building on previous ground-based exploration and desk-based data
reviews carried out by FDR. Following the detailed compilation of historical
drilling and surface geochemical data into comprehensive datasets, specific
mineral exploration target areas were established for orogenic gold and base
metals, including inferences on the potential for iron-oxide copper-gold and
iron-sulphide copper-gold mineralisation within the project area.
Corporate Activity
North America
Given the resurgence in the uranium sector, Power Metal saw considerable
interest in its strategic uranium holdings throughout the Period. This
culminated in the successful completion of a joint venture with UCAM Ltd for
Power Metal's entire portfolio of uranium licences. Pursuant to this
agreement, the joint venture elected to rename the Company's wholly owned
Canadian subsidiary company, 1501158 BC Ltd (formerly Power Metal Resources
Canada Inc), to Fermi Exploration Limited ("Fermi Exploration").
The joint venture provides Power Metal shareholders with exposure to value
realisation potential from high impact exploration and drilling programmes
across the entire uranium portfolio, which includes the largest ground
footprint in the Athabasca region held by a UK listed company.
The Company took a number of measures to increase its uranium footprint in and
around the Athabasca Basin. The Richards Lake Uranium Property was acquired by
direct mineral claim staking, and toward the end of the Period, the Fermi
Exploration technical team acquired the Pardoe Uranium Project, also by direct
mineral claim staking.
The Company was delighted to commence trading on the OTCQB Venture Market in
the United States on 10 April 2024. The admission to trading on OTCQB has
enabled better access to Power Metal stock for our valued North American
investors, who can now more easily share in the Company's success.
Guardian Metal Resources Plc
After a successful listing of Guardian Metal Resources Plc ("GMET") on the AIM
segment of the London Stock Exchange in May 2023, the Company maintained a
holding of 44.11%. After the reporting period, on 20 February 2025 the Company
reached an agreement with UCAM Ltd wherein UCAM Ltd purchased from Power
Metal 29,758,334 shares in GMET, and warrants granted over 986,352 ordinary
shares in GMET of £0.01 each, for a total cash consideration
of £9,225,083.91 before costs. The proceeds were used to redeem the £2
million loan note issued to ACAM LP on 10 June 2024, with accrued
interest, and for general corporate purposes.
Arabian Shield
The Company's activities in the Arabian Shield were initiated following the
signing of a non-binding Memorandum of Understanding ("MoU") with the Ministry
of Investment of the Kingdom of Saudi Arabia, the purpose of which is to
explore the possibility of joint collaboration efforts on the identification
and realisation of high value-added investment opportunities that can maximise
the Kingdom's natural resources.
Power Arabia was subsequently established to encompass all of the Company's
activities across the region, including projects outside the Gulf in joint
venture with entities domiciled within the region. It is envisaged that Power
Arabia will list on the London capital markets in due course.
Balthaga
During the Period, the Company signed a mutually binding earn-in agreement
with RIWAQ, a special purpose subsidiary of EV Metals Group plc focused on the
development of the Saudi Arabian supply chain for critical raw materials.
RIWAQ is the sole beneficial owner and the sole registered holder of 15
tenements in the Balthaga Suite; 11 of the tenements currently have
exploration licences granted, and the remaining four are pending grant.
As part of the agreement, RIWAQ granted Power Metal the right to earn a 20%
ownership interest in the tenements ("First Interest") by sole funding
US$350,000 in expenditure on the tenements, with the right to earn a further
10% ownership interest by sole funding an additional US$150,000 on the
tenements ("Second Interest") within six months following earning of the First
Interest.
Following earning of the First Interest or Second Interest, whichever occurs
later, the Parties have entered into a non-binding agreement to form a
contributing joint venture in proportion to their tenement interests.
Qatan
The Company also announced the signature of a Letter of Intent to enter into a
binding agreement with Al Masane Al Kobra Mining Company ("AMAK"), a Saudi
Arabian listed exploration and mining company, for Power Metal to spend
US$3,000,000 to earn a 49% stake in the Qatan exploration licence in southern
Saudi Arabia. Subsequent to the year end, the Company announced the decision
by both parties to not enter into a binding agreement due to the parties not
able to reach mutually acceptable terms. The Company affirms its continued
readiness to explore future partnership opportunities that contribute to
supporting its growth and strategic plans with AMAK in the near future.
Block 8
Power Metal and Power Arabia also extended its collective interests to Oman,
announcing the signature of a legally binding agreement with Alara Resources
Limited and Awtad Copper LLC for the opportunity to earn a 12.5% stake in the
Block 8 concession in return for exploration expenditure of up to US$740,000.
GSAe
GSAe has developed proprietary technology that can extract 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. Although it is a privately owned,
UK-headquartered company, GSAe is viewed by Power Metal as having significant
application opportunities in Saudi Arabia and thus represents a significant
step forward in our efforts to become a major operator in the region. Power
Metal acquired 75% of GSAe in return for structured payments, subject to
certain conditions, that amount to a total of £1 million. Based on forecasts
and historic performance, management expect to pay consideration of £727,000,
as at acquisition date.
Africa
Towards the end of 2023, Power Metal announced the disposal of its entire
holding of 69,500,000 shares of Kavango Resources plc at a price of 0.8p per
share, raising cash of £556,000 whilst streamlining the Company's focus and
crystallising value from its interests. This cash could then be reallocated to
high impact programmes at the Company's remaining assets, including at the
Tati Gold Project, where, during the Period, the Company announced that a
share option agreement (the "Option") had 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.
Subject to an 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 retains the right to a 100% interest in
other prospecting licences held by TGR other than PL049/2022.
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. The Company is
looking to progress potential commercial pathways with a view to moving the
project to the next stage in its exploration programme.
Australia
Power Metal's corporate activities in Australia during the reporting period
can be defined by key value crystallisation events.
In June 2024, the Company confirmed the disposal of its 49.9% interest in New
Ballarat Gold Corporation plc ("NBGC"), which wholly owns Red Rock Australasia
Pty Limited ("RRAL"), the local operating company holding exploration
interests in the Victoria Goldfields, Australia and in South Australia. Power
Metal's shareholding was sold to joint venture partner Red Rock Resources Plc
("RRR"), and, accordingly, the Company was issued 166,666,667 new ordinary
shares in RRR, now owning 3.87%. The Company was also issued with a £250,000
convertible loan note and 100,000,000 warrants exercisable into RRR ordinary
shares, for three years at a price of 0.15 pence per share.
The transaction not only enables the ownership of NBGC to be focused in one
entity, which is the optimal holding structure for its continuing development,
but it also represents a streamlining process of the Power Metal portfolio,
allowing the Company to concentrate its managerial, operational and financial
resources on retained high value business interests and new opportunities.
During the Period, Power Metal benefitted from a significant value
crystallisation event relating to its interest in the Wilan Project and
additional licences in the Mt Isa region of Queensland. Following the
successful completion of due diligence, ASX listed Aruma Resources Plc
announced a conditional agreement for the acquisition of 100% of NHM Holdings
(Australia) Pty Ltd (NMHA), of which Power Metal owns 20% of issued share
capital.
This acquisition provides Power Metal with exposure to uranium and copper
exploration potential on the ASX, further demonstrating the value of our
incubator model.
First Development Resources
First Development Resources PLC ("FDR") holds strategic exploration projects
in Western Australia and the Northern Territory. 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.
The Company is continuing with its efforts to list FDR on the AIM segment of
the London Stock Exchange and remains confident of a successful outcome.
Financial Review
· Total comprehensive profit for the 15-month period to 31 December
2024 of £3.9 million (2023: loss of £1.3 million).
· Pre-non-controlling interest total equity of £22.0 million at
the period-end (2023: £13.6 million).
· Raised £1.3 million (before issue costs) in new equity financing
during the financial period, from a combination of new and existing
shareholders, including the Directors.
· £0.6 million of shares were issued in relation to acquisitions
in various investments and projects.
· The Company ended the financial period with a cash balance of
£0.45 million (2023: £1.10 million).
· Cash balances held at the period-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.
The internal policies provide insights to employees, associates and
shareholders of how the Company embeds CSR into its daily practices and
indicates the Company's responsibility for ethical practices across all areas
of its operations.
During the period and after the period end, the Company has established
detailed policies and procedures to govern and ensure that the core CSR values
are followed internally as well as off-site in its field operations. Through
these efforts, the Company has developed new initiatives and general practices
to be maintained as the Company grows.
A key focus for the Company is to build awareness and interaction amongst its
communities. Due to the nature of the Company's operations and the
jurisdictions it operates within, it is imperative to acknowledge the
significance of these diverse communities to the territory. As the Company
develops, it recognises the importance of ensuring that all efforts are
considered to enable the communities to develop in parallel. A few of the many
ways the Company will facilitate this mutual growth is to build strong
relationships within the community, develop an understanding of how they
operate and determine how the Company can contribute to their continued
development.
The Company is dedicated to ensuring it maintains the safety and wellbeing of
its employees and the local community during field operations. This is not
exclusive to active operations but extends beyond, by maintaining a safe
conclusion of all on-site activity and ensuring that the land and materials
are left in a safe and respectful manner.
As the projects mature and develop, the Company will ensure that community
engagement is maintained. The continual focus on ensuring employees are
engaged in and committed to implementing its CSR policies, ethics and
commitments, will enable CSR to become integral and remain at the forefront of
all operations.
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 forecast improvements in
the junior resource and commodity market conditions, the Company is in an
excellent position to deliver value to shareholders.
Thank you for your continued support.
Notice of Annual General Meeting and Distribution of Accounts to Shareholders
The Company's Annual General Meeting ("AGM") will take place at 11.00am on 25
July 2025 at Temple Chambers, 3-7 Temple Avenue, London, EC4Y ODT. The
Company's Annual Report and Accounts for the 15-month period ended 31 December
2024 will be posted to shareholders today. 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 in due course.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 31 DECEMBER 2024
Note Period ended 31 Year ended 30 September 2023
December £'000
2024
£'000
Revenue 200 78
Cost of sales (7) -
Gross profit 193 78
Operating expenses 5 (7,964) (2,777)
Fair value gains through profit or loss 8,876 1,604
Profit/(loss) from operating activities 1,105 (1,095)
Other income 4 3,101 -
Finance costs (221) -
Share of post-tax losses of equity accounted joint ventures (123) (219)
Profit/(loss) before tax 3,862 (1,314)
Taxation 10 -
Profit/(loss) for the period from continuing operations 3,872 (1,314)
Other comprehensive (expense)/income
Items that will or may be reclassified to profit or loss:
Exchange translation (25) 6
Total other comprehensive (expense)/income (25) 6
Total comprehensive profit/(loss) for the period 3,847 (1,308)
Profit/(loss) for the period attributable to:
Owners of the parent 4,104 (1,096)
Non-controlling interests (232) (218)
3,872 (1,314)
Total comprehensive income/(loss) attributable to:
Owners of the parent 4,078 (1,083)
Non-controlling interests (231) (225)
3,847 (1,308)
Earnings per share from continuing operations attributable to the ordinary
equity holders of the parent:
Basic earnings/(loss) per share (pence) 10 3.74 (1.19)
Diluted earnings/(loss) per share (pence) 10 3.69 (1.19)
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2024
31 30 September 2023
December 2024
Note £'000 £'000
Assets
Exploration assets 7 4,916 4,947
Intangible assets 6 1,189 -
Investments in associates and joint ventures 4,242 290
Financial assets at fair value through profit or loss 884 1,161
Right-of-use assets 82 -
Property, plant and equipment 197 8
Non-current assets 11,510 6,406
Financial assets at fair value through profit or loss 15,859 7,188
Trade and other receivables 8 873 481
Inventories 22 -
Cash and cash equivalents 446 1,098
Assets classified as held for sale - 191
Current assets 17,200 8,958
( )
Total assets 28,710 15,364
Equity
Share capital 9 8,671 8,531
Share premium 9 29,258 27,497
Shares to be issued 187 -
Capital redemption reserve 5 5
Share based payment reserve 3,934 1,712
Convertible loan reserve 71 -
Exchange reserve 77 103
Accumulated losses (20,172) (24,276)
Total 22,031 13,572
Non-controlling interests 896 907
Total equity 22,927 14,479
Liabilities
Trade and other payables 11 2,013 885
Current lease liabilities 37 -
Current borrowings 498 -
Current contingent consideration 89 -
Current liabilities 2,637 885
Non-current lease liabilities 41 -
Non-current borrowings 2,414 -
Non-current contingent consideration 505 -
Provisions 6 -
Deferred tax 180 -
Non-current liabilities 3,146 -
Total liabilities 5,783 885
Total equity and liabilities 28,710 15,364
The financial statements of Power Metal Resources PLC, company number
07800337, were approved by the board of Directors and authorised for issue on
27 June 2025.
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 Accumulated losses 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 EQUITY
FOR THE PERIOD ENDED 31 DECEMBER 2024
Share capital Share premium Shares to be issued Capital redemption reserve Share based payment reserve Convertible loan reserve Exchange reserve Accumulated losses Total Non-controlling interests Total equity
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Balance at 1 October 2023 8,531 27,497 - 5 1,712 - 103 (24,276) 13,572 907 14,479
Profit for the period - - - - - - - 4,104 4,104 (232) 3,872
Other comprehensive expense - - - - - - (26) - (26) 1 (25)
Total comprehensive (expense) / income for the period - - - - - - (26) 4,104 4,078 (231) 3,847
Issue of ordinary shares 140 1,761 - - - - - - 1,901 - 1,901
Shares to be issued - - 187 - - - - - 187 - 187
Share-based payments - - - - 2,222 - - - 2,222 - 2,222
Issue of convertible loan note - - - - - 71 - - 71 - 71
Non-controlling interest adjustment on acquisition of subsidiaries - - - - - - - - - 100 100
Non-controlling interest adjustment on disposal of subsidiaries - - - - - - - - - 120 120
Total transactions with owners 140 1,761 187 - 2,222 71 - - 4,381 220 4,601
Balance at 31 December 2024 8,671 29,258 187 5 3,934 71 77 (20,172) 22,031 896 22,927
CONSOLIDATED STATEMENT OF CASHFLOWS
FOR THE PERIOD ENDED 31 DECEMBER 2024
Period ended Year ended
31 December 2024 30 September 2023
£'000 £'000
Cash flows used in operating activities
Profit/(loss) for the period from continuing activities 3,872 (1,314)
Adjustments for:
Fair value gain on financial assets (8,876) (1,604)
Fair value gain on convertible loan notes (13) -
Finance costs 221 -
Share of post-tax losses of equity accounted joint ventures 122 219
Expenses settled in shares 36 129
Expenses settled with convertible loan notes 400 -
Gain on disposals (2,804) (175)
Depreciation 10 5
Amortisation 22 -
Tax expense (10)
Expected credit losses 57 -
Foreign exchange losses/(gains) 11 (33)
Share-based payment expense 2,222 30
(4,730) (2,743)
Changes in working capital:
Decrease/(increase) in trade and other receivables 309 (169)
Increase in trade and other payables 351 797
Increase in inventories (6) -
Net cash used in operating activities (4,076) (2,115)
Cash flows from investing activities
Cash acquired on acquisition of subsidiary 1 -
Investments in financial assets through profit & loss (3) (291)
Disposal of financial assets 553 -
Investment in joint ventures and associates (95) (316)
Disposal of joint venture and associates 200 -
Investments in exploration assets (840) (797)
Cash relating to deconsolidated subsidiary - (410)
Purchase of property, plant, and equipment (180) (8)
Proceeds from disposal of property, plant and equipment 4 -
Net cash outflows from investing activities (360) (1,822)
Cash flows from financing activities
Proceeds from issue of share 1,299 3,616
capital
Proceeds from borrowings 3,000 -
Repayment of borrowings (490) -
Principal paid on lease liabilities (25) -
Shares issued to non-controlling interests by subsidiaries - 79
Issue costs - (220)
Net cash inflows from financing activities 3,784 3,475
Decrease in cash and cash equivalents (652) (462)
Cash and cash equivalents at beginning of period 1,098 1,560
Cash and cash equivalents at the end of the period 446 1,098
Significant non-cash transactions during the year
During the period, the Group completed the following transactions which are
non-cash events and do not appear in the statement of cash flows:
In May 2024, the Company acquired 75% of GSA (Environmental) Ltd, with the
first tranche of consideration settled in shares totalling £75,000. The
second tranche was settled in shares totalling £75,000, in December 2024.
In October 2024, the Company acquired Drake Lake Silas, a project which was
subsequently transferred to Fermi Exploration Ltd, through the issuance of
shares to the value of £500,000.
In December 2024, the Company settled £100,000 of interest on borrowings by
issuing 703,037 ordinary shares.
The Company repaid loans of £500,000 owed to Guardian Metal Resources plc
("GMET"), in December 2024, of which £10,000 was deducted by the Company in
relation to expenses incurred on behalf of GMET. The net cash outflow recorded
in financing activities was £490,000, with the remaining amount classified as
a non-cash transaction.
During the period, the Company settled expenses totalling £36,000 through the
issue of shares.
NOTES TO THE CONSOLODATED FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 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 Salisbury House, London Wall, London, EC2M 5PS. The
consolidated financial statements of the Group as at and for the 15 month
period ended 31 December 2024 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 Middle East.
During the period ended 31 December 2024, the Group acquired GSA
(Environmental) Ltd; the acquisition expanded the Group's activities to also
include the extraction of strategic metals catalysts from secondary sources
for use in high growth advanced manufacturing.
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 Period and post- period-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. Other income
Other income includes: Period ended Year ended
2024 2023
£'000 £'000
Gain on disposal of property, plant and equipment 3 -
Gain on disposal of financial assets 49 -
Gain on disposal of subsidiaries 2,690 -
Gain on disposal of associates and joint ventures - net 206 -
Gain on settlement of loan interest in shares 13
Grant income 140 -
3,101 -
5. Operating expenses
Operating expenses include: Period ended Year ended
2024 2023
£'000 £'000
Staff costs 1,876 957
Foreign exchange loss 52 62
Share based payment expense 2,222 31
Auditor's remuneration for audit of the Group and Company financial statements 50 36
6. Exploration assets
Group Prospecting and exploration rights
£'000
Cost
As at 1 October 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
As at 1 October 2023 6,073
Additions 1,340
Disposal (1,335)
Effect of foreign exchange (36)
Balance at 31 December 2024 6,042
Impairment
As at 1 October 2022 1,126
Balance at 30 September 2023 1,126
As at 1 October 2023 1,126
Balance at 31 December 2024 1,126
Net book value
At 30 September 2023 4,947
At 31 December 2024 4,916
During the period, the Group disposed of its direct interest in the Athabasca
project and acquired additional intangible assets in Saudi Arabia, see below:
Period ended Year ended
2024 2023
£'000 £'000
Exploration assets
Athabasca Uranium Project - 349
Canadian Graphite Project - 137
North Wind Project - 35
Authier North Project 107 74
Tati Gold-Nickel Project 365 384
Wallal, Braeside West, Selta & Ripon Hill Projects 1,714 1,692
Molopo Farm Project 2,417 2,276
Alara Project 186 -
AMAK Project 7 -
Riwaq/EVM Project 120 -
Total 4,916 4,947
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
The properties held under this project are held by Fermi Exploration Ltd
("Fermi"), (formerly Power Canada Inc.) In September 2024, the Group disposed
of 70% of its shareholding in Fermi, and the remaining 30% investment is
recognised as a joint venture as at 31 December 2024.
Canadian Graphite & North Wind Projects
Canadian Graphite and North Wind were projects held by ION Battery Resources
Limited ("ION") in the year ended 30 September 2023. During the period to 31
December 2024, these licences expired and therefore the projects were written
off.
Authier North Project
In July 2023, Power Metal announced the early completion of an 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.
Tati Gold-Nickel Project
Located in Tati Greenstone Belt, in northeastern Botswana, Power Metal has a
100% interest in two prospecting licences which form the 91.14km Tati Project,
targeting gold and nickel discoveries. Recent soil geochemistry results,
reported in February 2024 has identified multiple anomalous areas, including
samples of up to 1.076 grammes per tonne ("g/t") gold ("Au") in soil; and
represents a significant extension zone trending southwest from the original
Cherished Hope historical mine workings where Power Metal in 2022 drilled 3m
at 16.77g/t Au from 5m.
Wallal Project, Ripon Hills, Braeside Project and Selta Project
First Development Resources Pty Ltd ("FDR Pty"), an 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 150km2. 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, 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.
Balthaga Project
In March 2024, Power Metal obtained a 30% earn in interest with RIWAQ
Al-Mawarid for Mining ("RIWAQ") on the Balthaga Lithium Project. Under the
agreement Power Metal must spend $350,000 within twelve months of the date of
execution of the binding agreement. If Power Metal spends an additional
$150,000 within the six months following earning the first interest, a further
10% ownership is gained. Following the earn in of the later of the first or
second interest, Power Metal and RIWAQ will form a joint venture in proportion
to their tenement interests.
AMAK Project
In September 2024, Power Metal signed a Letter of Intent, with AMAK, a Saudi
Arabian listed exploration and mining company, for Power Metal to spend
$3,000,000 to earn a 49% stake in the Qatan exploration licence in southern
Saudi Arabia.
Alara Project
In October 2024, Power Metal signed a legally binding agreement with Alara
Resources Limited ("Alara") and Awtad Copper, to earn a 12.5% stake in the
Block 8 concession in Oman. Power Metal will incur initial expenditure of
$500,000 by 30 April 2025 to earn a 10% interest in the tenement. A further
2.5% interest will be earned once Power Metal spends an additional $240,000 on
exploration of Block 8. Once the $740,000 expenditure has been reached, Power
Metal and Alara will negotiate a joint venture covering future spending.
7. Intangible assets
Group Technology Goodwill Total
£'000 £'000 £'000
Cost
As at 1 October 2023 - - -
Additions on acquisition 761 429 1,190
Balance at 31 December 2024 761 429 1,190
Amortisation
As at 1 October 2023 - - -
Charge for the period (1) - (1)
Balance at 31 December 2024 (1) - (1)
Net book value
At 30 September 2023 - - -
At 31 December 2024 760 429 1,189
During the Period the Group acquired 75% of the issued share capital in GSA
(Environmental) Ltd. The balance sheet on acquisition included £761,000
technology intangibles and £429,000 was recognised as goodwill.
8. Trade and other receivables
Group Period ended Year ended
2024 2023
£'000 £'000
Accounts receivable 24 31
Other receivables 766 366
Prepayments 83 84
873 481
9. Share capital
Number of ordinary
shares
Period ended Year ended
2024 2023
Ordinary shares in issue at 1 October 2,080,106,256 1,614,654,921
Issued for cash 130,000,000 383,673,949
Issued in settlement for acquisitions - 60,093,043
Issued in lieu of expenses 3,362,068 21,684,343
Total prior to share consolidation 2,213,468,324 2,080,106,256
1 to 20 share consolidation 110,673,416 -
Issued for settlement for acquisition 4,148,514 -
Issued in lieu of expenses 788,507 -
In issue at the end of the period- fully paid (par value 0.1p) 115,610,437 2,080,106,256
Number of deferred
shares
Period ended Year ended
2024 2023
Deferred shares in issue at 1 October 3,628,594,957 3,628,594,957
In issue at the end of the period 3,628,594,957 3,628,594,957
Ordinary
share capital
Period ended Year ended
2024 2023
£'000 £'000
Balance at beginning of period 8,531 8,065
Share issues 140 466
Balance at the end of the period 8,671 8,531
Share Premium
Period ended Year ended
2024 2023
£'000 £'000
Balance at beginning of period 27,497 23,312
Share issues 1,761 4,405
Expenses relating to share issues - (220)
Balance at the end of the period 29,258 27,497
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 October 2023, the Company issued 3,362,068 ordinary shares at an issue
price of 0.73p per share in lieu of fees incurred with advisors. 1,293,103
shares were issued to SP Angel Corporate Finance LLP, the Company's nominated
advisor and joint broker, in lieu of fees to the value of £9,500. The
remaining 2,068,965 shares were issued to Resolve Research in lieu of £15,000
worth of fees.
In February 2024, the Company issued 130,000,000 ordinary shares at an issue
price of 1 pence per share as part of a strategic financing round. The shares
were issued to high net worth UK based investors as well as a strategic Saudi
Arabian investor.
In March 2024, the Company announced a 1 to 20 share consolidation. The new
shares were also revalued from 0.1 pence per share to 2 pence per share. The
effect of this share consolidation took the number of shares in issue from
2,213,468,324 to 110,673,417.
In May 2024, the Company successfully acquired 75% of the issued share capital
in GSA (Environmental) Ltd, a private company registered in the UK. The
initial consideration tied to this acquisition was the issue of 514,358
ordinary shares at an exercise price of 14.5813 pence per share.
In October 2024, the Company entered into a joint venture with UCAM Ltd.
Consideration payable by Power Metals was to the value of £500,000 through
the issue of 3,099,968 ordinary shares at an issue price of 16.1292 pence
each.
In December 2024, the Company issued 703,037 ordinary shares at an issue price
of 14.4224 pence per share in relation to interest incurred on a loan received
from ACAM Ltd in June 2024.
In December 2024, the contingent consideration on the acquisition of GSA
(Environmental) Ltd was due for settlement. This was settled by the issue of
534,188 ordinary shares at an issue price of 14.04 pence per share.
In December 2024, the Company issued 85,470 ordinary shares at an issue price
of 14.04 pence per share in lieu of fees incurred with Media Outreach. The
shares were issued in lieu of fees due of £12,000.
10. Earnings per share
Basic and diluted loss per share
The calculation of the basic earnings per share ("EPS") is based on the
results attributable to ordinary shareholders divided by the weighted average
number of shares in issue during the year. Diluted EPS in the current period
includes the impact of outstanding share options at 31 December 2024.
Basic Period ended Year ended
2024 2023
Profit/(loss) attributable to equity holders of the parent (£) 4,104,000 (1,096,000)
Weighted average number of ordinary shares in issue 109,721,458 92,105,594
Basic and diluted loss per ordinary share (pence) 3.74 (1.19)
Diluted Period ended Year ended
2024 2023
Profit/(loss) attributable to equity holders of the parent 4,104,000 (1,096,000)
Weighted average number of ordinary shares in issue 111,217,558 92,105,594
Basic and diluted loss per ordinary share (pence) 3.69 (1.19)
The basic and diluted earnings per share in the comparative period are the
same given the loss for the period, making the outstanding share options and
warrants as at 30 September 2023 anti-dilutive.
11. Trade and other payables
Group Period ended Year ended
2024 2023
£'000 £'000
Trade payables 603 343
Other payables 43 35
Other taxation and social security 35 54
Accrued expenses 1,332 453
2,013 885
12. Subsequent events
In February 2025, the Group announced the part disposal of its holding in
Guardian Metal Resources Plc (formerly Golden Metal Resources) ("GMET"). Power
Metal sold 29,758,334 shares in GMET, and warrants granted over 986,352
ordinary shares in GMET of £0.01 each, for a total cash consideration of
£9,225,000 before costs. The proceeds were used to redeem the £2 million
loan note issued to ACAM LP on 10 June 2024, with accrued interest, and for
general corporate purposes.
Power Metal still retains 24,699,825 ordinary shares representing 19.46% of
GMET's issued share capital.
In March 2025, the Group announced the disposal of its 30% interest in Silver
Peak Resources Limited. Maximum consideration for the disposal amounts to
CAD$410,000. This disposal comes as part of managements goal to streamline the
Power Metal portfolio to optimise returns for shareholders.
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/Jen Clarke +44 (0) 20 3470 0470
Tamesis Partners LLP (Joint Broker)
Richard Greenfield/Charlie Bendon +44 (0) 20 3882 2868
BlytheRay (PR Advisors)
Tim Blythe/Alastair Roberts +44 (0) 20 7138 3204
p (mailto:powermetalresources@blytheray.com) owermetalresources@blytheray.com
(mailto:powermetalresources@blytheray.com)
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, Oman 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.
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. END FR PKCBPCBKKOABRecent news on Power Metal Resources
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