REG - Sunrise Resources - HALF-YEARLY REPORT 2025
21/05/2025 07:00
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RNS Number : 4700J Sunrise Resources Plc 21 May 2025
("Sunrise" or the "Company")
21 May 2025
HALF-YEARLY REPORT 2025
Sunrise Resources plc is pleased to announce its unaudited interim results for
the six months ended 31 March 2025 and provide an update on operational
progress since the release of the Company's annual report in February 2025.
A copy of this report is also available on the Company's website,
www.sunriseresourcesplc.com (http://www.sunriseresourcesplc.com) .
OPERATIONAL HIGHLIGHTS
We continue working diligently to position our mine-ready CS Pozzolan-Perlite
Project - and our earlier stage Hazen Pozzolan Project - to unlock their
inherent value and meet the growing demand for natural pozzolan. However,
since February 2025 the main operational activity has been at the Pioche
Project in Nevada, USA.
Pioche Sepiolite
Sepiolite is a rare but important speciality clay used mainly for its gelling
and absorbing properties.
· Data package received from Tolsa covering the results of work
undertaken since exploration began in 2022, including:
Ø Geological mapping, trenching, surface sampling, auger drilling (20 holes
drilled in 2023) and sonic drilling (10 holes drilled in 2024).
Ø Testing results for samples from the above field programmes.
· Data review has been completed with the following conclusions:
Ø Extensive sepiolite beds have been discovered over an area of 2.6km x 1.3km
with samples containing up to 92% sepiolite.
Ø 3-D modelling by the Company has demonstrated that the sepiolite beds are
continuous across this project area at or near surface, so suitable for open
pit mining with low strip ratios.
Ø Outer limits of sepiolite deposit not yet defined.
Ø Whilst drilling has demonstrated continuity of sepiolite beds, drill
spacing is too wide (average c. 300m) for effective correlation of specific
sepiolite grades.
Ø Sepiolite morphology (important for commercial properties) is similar to
that found in the IMV sepiolite mine in the Amargosa Valley, Nevada, albeit
different to Tolsa's Spanish sepiolite.
· Extensive testing programme initiated to simulate processing
methods employed for commercial sepiolite production in the US. Early results:
Ø compare very favourably with commercially available sepiolite in the US;
Ø confirm the commercial potential of Pioche sepiolite across a range of
applications including critical saltwater applications in the valuable oil and
gas drilling market (not evaluated by Tolsa).
· Timing for new market entrant is favourable due to:
Ø Expectation of a strong increase in oil/gas well drilling activity under
the Trump Administration.
Ø The existential environmental threats to the Amargosa Valley sepiolite
mine, the only producer of sepiolite in the USA.
Financial Results Summary
· Group loss for the six-months ended 31 March 2025 of £147,902
comprising:
Ø Other income of £1,968.
Ø Interest income of £17; less Administration costs of £144,781.
Ø Expensed pre-licence exploration costs totalling £1,443.
Ø Impairment adjustment (credit) of £3,663.
· Project expenditure of £5,494 was capitalised.
Funding during the period
Funds of US$75,000 (GBP £58,080) were received in November 2024 as the second
instalment from the sale of the Crow Springs Diatomite claims and US$59,452
(GBP £46,040) was received in December 2024 as a bond refund from the Bureau
of Land Management for the CS Pozzolan-Perlite Project.
Shares to the value of £19,069 were issued in March 2025 in satisfaction of a
portion of outstanding directors' fees. In addition, amounts of £45,000 and
£27,000 were settled in shares on the partial conversion of convertible
securities in November 2024 and February 2025, respectively.
On 31 March 2025, the Company held £91,730 in cash and cash equivalents and
liquid listed investments having a value of £6,329.
The Company relies upon periodic capital fundraisings until such time as
cashflow can be derived either from the sale of assets or future operations.
Further information:
Sunrise Resources plc Tel: +44 (0)1625 838 884
Patrick Cheetham, Executive Chairman
Tel: +44 (0)207 628 3396
Beaumont Cornish Limited
Nominated Adviser
James Biddle/Roland Cornish
Tel: +44 (0)207 469 0930
Peterhouse Capital Limited
Broker
Lucy Williams/Duncan Vasey
CAUTIONARY NOTICE
The news release may contain certain statements and expressions of belief,
expectation or opinion which are forward looking statements, and which relate,
inter alia, to the Company's proposed strategy, plans and objectives or to the
expectations or intentions of the Company's directors. Such forward-looking
statements involve known and unknown risks, uncertainties and other important
factors beyond the control of the Company that could cause the actual
performance or achievements of the Company to be materially different from
such forward-looking statements. Accordingly, you should not rely on any
forward-looking statements and save as required by the AIM Rules for Companies
or by law, the Company does not accept any obligation to disseminate any
updates or revisions to such forward-looking statements.
MARKET ABUSE REGULATION (MAR) DISCLOSURE
The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulations
(EU) No. 596/2014 which forms part of UK domestic law by virtue of the
European Union (Withdrawal) Act 2018 ('MAR'). Upon the publication of this
announcement via Regulatory Information Service ('RIS'), this inside
information is now considered to be in the public domain.
NOMINATED ADVISER
Beaumont Cornish Limited ("Beaumont Cornish") is the Company's Nominated
Adviser and is authorised and regulated by the FCA. Beaumont Cornish's
responsibilities as the Company's Nominated Adviser, including a
responsibility to advise and guide the Company on its responsibilities under
the AIM Rules for Companies and AIM Rules for Nominated Advisers, are owed
solely to the London Stock Exchange. Beaumont Cornish is not acting for and
will not be responsible to any other persons for providing protections
afforded to customers of Beaumont Cornish nor for advising them in relation to
the proposed arrangements described in this announcement or any matter
referred to in it.
Chairman's Statement
I am pleased to present our unaudited interim results for the six months ended
31 March 2025 and to update on the Company's progress since the last major
update in our Annual Report released in mid-February 2025. These past few
months have been marked by continued efforts to advance the value of our
diverse portfolio and to enhance engagement with stakeholders and the wider
market.
Operational Progress
The mine-permitted CS Pozzolan-Perlite Project in Nevada remains a cornerstone
of our strategy and our objective remains to position this project - and our
earlier stage Hazen Pozzolan Project - to unlock their inherent value and meet
the growing demand for natural pozzolan. Needless to say, this has become a
protracted process. Our public disclosure requirements can be, and in some
cases have been, a roadblock when concluding agreements with larger private
companies anxious to maintain secrecy over their business dealings and an
impediment in communicating progress to shareholders. We continue to work
diligently towards our objective.
From an operational standpoint, in this reporting period, the Pioche Sepiolite
Project has been at the fore since we regained control of the Project. Despite
minimal expenditure by the Company - less than US$60,000 - the Project has
already generated US$150,000 in option fees and has benefited from several
hundred thousand dollars of third-party, non-dilutive expenditure.
Together with our expert consultant, Thomas Powell, a recognised authority in
sepiolite, we have spent considerable time analysing drilling and test data
previously acquired by Tolsa. The data confirms that Tolsa identified large
volumes of sepiolite clay across a wide and open-ended area. Our 3-D modelling
of drill hole data indicates strong lateral continuity, with the clay beds
occurring horizontally and at or near surface - characteristics that favour
low cost extraction.
We have also launched an extensive testing programme on Tolsa's samples from
Pioche. Early results from the small samples provided by Tolsa to date
indicate the suitability of Pioche sepiolite for the US market when
appropriately processed. Tolsa is currently shipping all remaining
exploration samples to the Company to support future testwork programmes.
Notably, the largest single market for sepiolite in the US is in oil and gas
well drilling, a segment not currently served by Tolsa. With renewed US policy
emphasis on domestic energy production, we believe that the Pioche Project is
well-positioned to benefit. As a result the project has started attracting
interest from potential customers and other clay producers.
The only producing sepiolite deposit in the US, located in the Amargosa
Valley, Nevada, has served the domestic market since the 1970s. However, that
site is now threatened by expanding Areas of Critical Environmental Concern
creating an opportunity for new entrants.
Other Projects
The Company also holds a portfolio of non-core industrial mineral, gold,
silver and base metals projects. All are drill ready and are owned 100% by the
Company without underlying royalties or other encumbrances.
These projects have come back into focus recently due to changes in market
conditions. The US dollar gold price has reached record highs, driven by
persistent economic uncertainty, central bank buying, inflation concerns and
geopolitical instability - including conflicts in the Middle East and Ukraine
and shifting US trade policies. Investors are increasingly seeking tangible
assets over those with counterparty risk. Many analysts forecast continued
strength in gold prices alongside a significant upward correction in silver
prices as the gold-to-silver price ratio approaches historic high levels.
Against this backdrop, we have an active programme to valorise non-core assets
and hope to report progress in due course.
Corporate Developments
In March 2025, long-serving Non-Executive Director, Mr Roger Murphy, retired
from the Board to focus on family and his private business interests. We
extend our sincere thanks to Roger for his valued contribution since his
appointment in May 2016. We were pleased to welcome Mr Adam Hainsworth, a
long-term and significant shareholder to the Board as a Non-Executive
Director. Adam brings a fresh commercial and investor perspective and has now
assumed the role of Chairman of the Remuneration Committee.
We recognise the importance of effective communication with shareholders. To
that end we have engaged Bromham Communications & Investment Limited to
support our outreach efforts, including enhanced social media presence and
access to the StockBox Investor Platform. A number of interviews and updates
are now available through these channels, and on our website, providing deeper
insight into the Company's strategy and operational progress.
Looking Ahead
Our focus remains firmly on progressing our key projects towards commercial
production. We are committed to our strategic objective of delivering
long-term value for shareholders through project development, sales of
non-core assets and retained royalty interests.
On behalf of the Board, I extend our sincere gratitude to our shareholders for
their continued support and confidence in Sunrise Resources plc.
Sincerely,
Patrick Cheetham
Executive Chairman
21 May 2025
Consolidated Income Statement
for the six months to 31 March 2025
Six months Six months Twelve months to
to 31 March to 31 March 30 September
2025 2024 2024
Unaudited Unaudited Audited
£ £ £
Revenue - 59,438 112,050
Cost of sales - - (41,146)
Gross profit - 59,438 70,904
Other income 1,968 83,212 78,435
Pre-licence exploration costs (1,443) (678) 304
Reversal of impairment of deferred exploration assets (3,663) 1,226 (422,135)
Administration costs (144,781) (209,723) (386,766)
Operating loss (147,919) (66,525) (659,258)
Interest receivable 17 412 452
Loss before income tax (147,902) (66,113) (658,806)
Income tax - - -
Loss for the period attributable to equity
holders of the parent (147,902) (66,113) (658,806)
Loss per share - basic and fully diluted (pence) (Note 2) (0.003) (0.002) (0.015)
Consolidated Statement of Comprehensive Income
for the six months to 31 March 2025
Six months Six months Twelve months
to 31 March to 31 March to 30 September
2025 2024 2024
Unaudited Unaudited Audited
£ £ £
Loss for the period (147,902) (66,113) (658,806)
Other comprehensive income:
Items that could be reclassified subsequently to the Income Statement:
Foreign exchange translation differences on
foreign currency net investments in subsidiaries 62,808 (72,021) (201,584)
Items that will not be reclassified to the Income Statement:
Changes in the fair value of equity investments (2,095) 7,288 (1,954)
60,713 (64,733) (203,538)
Total comprehensive loss for the period
attributable to equity holders of the parent (87,189) (130,846) (862,344)
Consolidated Statement of Financial Position
as at 31 March 2025
As at As at As at
31 March 31 March 30 September
2025 2024 2024
Unaudited Unaudited Audited
£ £ £
Non-current assets
Intangible assets 1,905,562 2,359,576 1,832,826
Other investments 6,329 17,992 7,930
1,911,891 2,377,568 1,840,756
Current assets
Receivables 90,058 147,419 179,813
Cash and cash equivalents 91,730 161,911 102,425
181,788 309,330 282,238
Current liabilities
Trade and other payables (165,792) (160,068) (127,887)
Lease liability - (2,557) -
Convertible loan note (123,000) (275,000) (195,000)
(288,792) (437,625) (322,887)
Net current (liabilities)/assets (107,004) (128,295) (40,649)
Non-current liabilities
Provisions for liabilities and charges (25,384) (25,977) (24,485)
(25,384) (25,977) (24,485)
Net assets 1,779,503 2,223,296 1,775,622
Equity
Called up share capital 55,330 42,753 49,450
Share premium account 6,080,302 5,728,384 5,995,112
Share warrant reserve 43,757 38,564 43,757
Capital redemption reserve 4,054,102 4,054,102 4,054,102
Fair value reserve (1,375) 9,962 720
Foreign currency reserve 49,938 111,487 (12,870)
Accumulated losses (8,502,551) (7,761,956) (8,354,649)
Equity attributable to owners of the parent 1,779,503 2,223,296 1,775,622
Consolidated Statement of Changes in Equity
Share Capital Share Fair Foreign
Share premium redemption reserve warrant reserve value currency Accumulated
capital account reserve reserve losses Total
£ £ £ £ £ £ £ £
At 30 September 2023 4,095,052 5,680,316 - 42,815 2,674 188,714 (7,701,048) 2,308,523
Loss for the period - - - - - - (66,113) (66,113)
Change in fair value - - - - 7,288 - - 7,288
Exchange differences - - - - - (77,227) - (77,227)
Total comprehensive loss for
the period - - - - 7,288 (77,227) (66,113) (136,052)
Share issue 1,803 48,068 - - - - - 49,871
Capital restructure (4,054,102) - - - - - - (4,054,102)
Capital redemption reserve - - 4,054,102 - - - - 4,054,102
Share based payments expense - - - 954 - - - 954
Transfer of expired warrants - - (5,205) - - 5,205 -
At 31 March 2024 42,753 5,728,384 4,054,102 38,564 9,962 111,487 (7,761,956) 2,223,296
Loss for the period - - - - - - (592,693) (592,693)
Change in fair value - - - - (9,242) - - (9,242)
Exchange differences - - - - - (124,357) - (124,357)
Total comprehensive loss for
the period - - - - (9,242) (124,357) (592,693) (726,292)
Share issue 6,697 266,728 - - - - - 273,425
Share based payments expense - - - 5,193 - - - 5,193
At 30 September 2024 49,450 5,995,112 4,054,102 43,757 720 (12,870) (8,354,649) 1,775,622
Loss for the period - - - - - - (147,902) (147,902)
Change in fair value - - - - (2,095) - - (2,095)
Exchange differences - - - - - 62,808 - 62,808
Total comprehensive loss for
the period - - - - (2,095) 62,808 (147,902) (87,189)
Share issue (Note 3) 5,880 85,190 - - - - - 91,070
At 31 March 2025 55,330 6,080,302 4,054,102 43,757 (1,375) 49,938 (8,502,551) 1,779,503
Consolidated Statement of Cash Flows
for the six months to 31 March 2025
Six months Six months Twelve months
to 31 March to 31 March to 30 September
2025 2024 2024
Unaudited Unaudited Audited
£ £ £
Operating activity
Operating loss (147,919) (66,525) (659,258)
Depreciation/interest charge - - 5,046
Share based payment charge - 954 6,147
Deferred consideration from sale of exploration assets - - 56,025
Shares issued in lieu of net wages 19,069 12,363 12,363
Expenditures settled by issues of shares - - 17,015
Impairment of deferred exploration asset - - 422,135
Reclamation provision - - 5,039
(Increase)/decrease in receivables 89,755 (1,960) (34,355)
Increase/(decrease) in trade and other payables 37,905 51,295 19,115
Net cash outflow from operating activity (1,190) (3,873) (150,728)
Investing activity
Interest received 17 412 452
Project development expenditures (5,494) (29,867) (102,580)
Net cash outflow from investing activity (5,477) (29,455) (102,128)
Financing activity
Issue of share capital (net of expenses) - 7 188,917
Lease payments - - (2,412)
Net cash inflow from financing activity - 7 186,505
Net increase/(decrease) in cash and cash equivalents (6,667) (33,321) (66,351)
Cash and cash equivalents at start of period 102,425 177,967 177,967
Exchange differences (4,028) 17,265 (9,191)
Cash and cash equivalents at end of period 91,730 161,911 102,425
Notes to the Interim Statement
1. Basis of preparation
The consolidated interim financial information has been prepared in accordance
with the accounting policies that are expected to be adopted in the Group's
full financial statements for the year ending 30 September 2025 which are not
expected to be significantly different to those set out in Note 1 of the
Group's audited financial statements for the year ended 30 September 2024.
These are based on the recognition and measurement requirements of applicable
law and UK adopted International Accounting Standards. The financial
information has not been prepared (and is not required to be prepared) in
accordance with IAS 34. The accounting policies have been applied consistently
throughout the Group for the purposes of preparation of this financial
information.
The financial information in this statement relating to the six months ended
31 March 2025 and the six months ended 31 March 2024 has neither been
audited nor reviewed by the Independent Auditor pursuant to guidance issued by
the Auditing Practices Board. The financial information presented for the year
ended 30 September 2024 does not constitute the full statutory accounts for
that period. The Annual Report and Financial Statements for the year ended 30
September 2024 have been filed with the Registrar of Companies. The
Independent Auditor's Report on the Annual Report and Financial Statements for
the year ended 30 September 2024 was unqualified, although it did draw
attention to matters by way of emphasis in relation to going concern.
The directors prepare annual budgets and cash flow
projections for a 15-month period. These projections include the proceeds of
future fundraising necessary within the period to meet the Company's and the
Group's planned discretionary project expenditures and to maintain the Company
and the Group as a going concern. Although the Company has been successful in
raising finance in the past, there is no assurance that it will obtain
adequate finance in the future. These factors represent a material uncertainty
related to events or conditions which may cast significant doubt on the
entity's ability to continue as a going concern and, therefore, that it may be
unable to realise its assets and discharge its liabilities in the normal
course of business. However, the directors have a reasonable expectation that
they will secure additional funding when required to continue meeting
corporate overheads and exploration costs for the foreseeable future and
therefore believe that the going concern basis is appropriate for the
preparation of the financial statements.
2. Loss per share
Loss per share has been calculated on the attributable loss
for the period and the weighted average number of shares in issue during the
period.
Six months Six months Twelve months
to 31 March to 31 March to 30 September
2025 2024 2024
Unaudited Unaudited Audited
Loss for the period (£) (147,902) (66,113) (658,806)
Weighted average shares in issue (No.) 5,182,977,424 3,962,771,483 4,360,320,952
Basic and diluted loss per share (pence) (0.003) (0.002) (0.015)
The loss attributable to ordinary shareholders and weighted average number of
shares for the purpose of calculating the diluted earnings per share are
identical to those used for the basic earnings per share. This is because
the exercise of share warrants would have the effect of reducing the loss per
share and is therefore not dilutive under the terms of IAS33.
3. Share capital
During the six months to 31 March 2025 the following share issues and
transactions took place:
An issue of 225,000,000 0.001p Ordinary Shares at 0.02p per share, by exercise
of conversion rights in connection with the First Convertible Security held by
Towards Net Zero, LLC, for a total consideration of £45,000 (13 November
2024).
An issue of 270,000,000 0.001p Ordinary Shares at 0.01p per share, by exercise
of conversion rights in connection with the Second Convertible Security held
by Towards Net Zero, LLC, for a total consideration of £27,000 (17 February
2025).
An issue of 93,021,463 0.001p Ordinary Shares at 0.0205p per share to three
directors, for a total consideration of £19,069 in satisfaction of directors'
fees (12 March 2025).
The total number of Ordinary Shares in issue on 31 March 2025 was
5,533,002,159 shares of 0.001p each (30 September 2024: 4,944,980,696 shares
of 0.001p each).
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