REG - Tertiary Minerals - HALF-YEARLY REPORT 2023
30/05/2023 14:45
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RNS Number : 0561B Tertiary Minerals PLC 30 May 2023
30 May 2023
TERTIARY MINERALS PLC
("Tertiary" or "the Company")
HALF-YEARLY REPORT 2023
Tertiary Minerals plc is pleased to announce its unaudited interim results for
the six-month period ended 31 March 2023.
Six-Month Operational highlights:
Tertiary continues to develop its mineral project portfolio, focused on copper
opportunities in Zambia and copper and precious metals projects in Nevada.
Zambia
· JV agreement signed with Mwashia Resources recognising the
Company's 90% interest and right to purchase the remaining 10% interest in the
Jacks Copper Project.
· Jacks Copper Project soil sampling programme generated multiple
copper soil anomalies with a peak value of 535ppm copper and high Cu:Sc ratios
which can indicate hydrothermal copper sulphide and compare favourably with
soil anomalies in the vicinity of various ore zones at current and past
producing mines on the Copperbelt. Drill testing is planned.
· Data transfer completed from First Quantum Minerals for the Mukai
and Mushima North Copper Projects under a data sharing and technical
cooperation agreement.
· Resampling of 1970s drill hole RKN800 at Mushima North returned
33m grading 0.24% copper from 122m-155m downhole, including 9m grading 0.43%
copper from 140m-149m. The drillhole ended in mineralisation grading 0.19%
copper from 154-155m (EOH) and lies on the edge of an untested gravity anomaly
defined and targeted for drilling by BHP for possible Iron-Oxide-Copper-Gold
style mineralisation.
· Extensive exploration targeting undertaken in preparation for the
2023 field season. Project Focus presentations published for the Mukai and
Konkola West Projects. Mushima North Project Focus presentation to follow.
· 2023 field season commenced with soil sampling programme at the
Lubuila Copper Project. In-field portable X-Ray Fluorescence (pXRF) analytical
results indicate a large open-ended copper-in-soil anomaly defined over an
area of approximately 1,000m x 680m with a peak copper value of 306 ppm and an
average value of 125ppm Cu.
Nevada
Brunton Pass Copper Gold Project:
· Results received from trenching programme showed wide intervals
of low-grade copper skarn mineralisation including 27m grading 1,010ppm copper
(0.1% Cu) in T7, open to the east, and 78m grading 473ppm copper in T8 also
open to the east.
· Results suggest the possible presence of a deeper porphyry copper
target.
· Two trenches testing the north and south ends of a 1.2km long
zone of mercury/arsenic soil anomalies intersected substantial widths of
hydrothermally altered rock with approximately 1,000 times background content
of the gold indicator elements, arsenic and mercury. This zone is a compelling
drill target for epithermal gold mineralisation.
FINANCIAL SUMMARY FOR THE SIX-MONTH PERIOD ENDED 31 MARCH 2023:
· Operating Loss of £253,089 comprises:
o Revenue relating to re-charged expenses of £75,944.
o Less administration costs of £294,796 (including non-cash share-based
payments of £14,145).
o Pre-licence and reconnaissance exploration costs totalling £34,237.
· Total Group Loss of £252,854 is after crediting interest income
of £235.
· Project expenditure of £115,162 was capitalised during the
six-month period.
Funding and Cash Position:
· In February 2023, the Company completed a fundraising with
Peterhouse Capital Limited raising £300,000 before expenses.
· The closing cash (and cash equivalent) position at the end of the
period was £217,967.
Enquiries
Tertiary Minerals plc +44 (0)1625 838 679
Patrick Cheetham, Executive Chairman
SP Angel Corporate Finance LLP
Nominated Adviser & Joint Broker +44 (0) 20 3470 0470
Richard Morrison/Harry Davies-Ball
Peterhouse Capital Limited +44 (0) 207 469 0930
Joint 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.
Chairman's Statement
I am pleased to present our Interim Report for the six-month period ended 31
March 2023 and a summary of our principal activities which continue to be the
identification, acquisition, and exploration of mineral projects prospective
for copper and precious metals in Zambia and Nevada, USA, both stable
democratic and mining friendly jurisdictions.
Copper is often overlooked in the rush for critical minerals for the green
economy, yet it is used extensively in renewable power generation and electric
vehicles. Long-term demand for copper is forecast to enjoy sustained growth as
developed economies look to move towards net zero carbon emissions.
Government-backed stimulus projects will add tailwinds to this, whilst
infrastructure projects in developing economies will also pressure supply
going forward.
In Zambia, this six-month reporting period spans the end of the 2022 dry
season, the main field season, and the majority of the 2022-23 wet season
where exploration access is largely restricted. We made the most of the wet
season, however, by carrying out extensive data collection, evaluation and
exploration planning for the 2023 field season, now underway.
This planning has been helped enormously by our data sharing and technical
cooperation agreement with multi-national copper miner, First Quantum Minerals
("FQM"). FQM has provided extensive and valuable databases for our Mukai
Project, which lies adjacent to FQM's Sentinel copper and Enterprise nickel
mines, and for our Mushima North Project, where recent sampling of a 1970s
drillhole has returned wide intervals of low-grade copper mineralisation, open
at depth. These are exciting results as the drillhole lies on the margins of a
significant untested gravity anomaly, now a target for Iron-Oxide-Copper-Gold
("IOCG") stye mineralisation.
The agreement with FQM has saved us hundreds of thousands of dollars in
exploration expenditures and will harness the experience of FQM's technical
staff for the benefit of our projects.
Shareholders can find extensive information on our Zambian Projects on our
website where we have published project specific presentations on our Mukai
and the Konkola West copper projects. Notably, our Mukai Project lies to the
east of Arc Minerals' Zambian Copper Project where mining giant Anglo American
recently signed a joint venture agreement with Arc Minerals and must spend
US$88.5 million to earn a 70% interest in that project.
Our Konkola West Project lies adjacent to, and covers projected, deep, down
dip extensions to, the Lubambe-Konkola mining complexes and where KoBold
Metals is developing the large and high grade Mingomba deposit with backing
from Microsoft's Bill Gates, Amazon's Jeff Bezos, Virgin's Sir Richard
Branson, and mining giant BHP.
The Company's interests in Zambia also include the Jacks Copper Project where
the Company completed an extensive soil sampling programme and we are
delighted that this has defined a number of high priority copper soil
anomalies. These are ready for drill testing and include anomalies associated
with the original Jacks copper occurrence that we drill tested successfully in
2022 and where mineralisation is open at depth and along strike.
We anticipate that 2023 will be a busy year for the Company in Zambia with
fieldwork planned on most of our projects in the country. We hit the ground
running at the start of the 2023 field season having recently completed soil
sampling at the Lubuila copper prospect. Preliminary field analysis using a
pXRF analyser has defined a large open ended copper soil anomaly that now
requires verification with conventional laboratory analysis.
Our objective is to define targets at all our Zambian projects in the next few
months and to drill test priority targets within the current field season.
Our commitment to Zambia is illustrated by our recent co-sponsorship of a UK
All Party Parliamentary Group for Critical Minerals reception held in honour
of the Zambian President, His Excellency Hakainde Hichilema, who is ambitious
for the growth of the Zambian copper mining industry and is improving the
fiscal regime to encourage this.
We remain committed to testing our projects in Nevada and in this reporting
period received results for a trenching programme at the Brunton Pass Project
that has defined drill targets for copper skarn, porphyry copper and
epithermal gold. However, Nevada is, at least in the short term, taking a
backseat to Zambia where we have immediate expenditure commitments to the
Government and to our local partner, Mwashia Resources. The two geographical
regions are complementary for us in that exploration is not seasonal in most
areas of Nevada.
Our activities during the period have been funded through existing cash
resources and a share placing with our joint broker, Peterhouse Capital
Limited, that raised £300,0000 before expenses, and the sale of a
shareholding in TSX-V listed Aurion Resources.
We anticipate strong news flow in 2023 and are hopeful that this will result
in a rerating of the Company by investors - a justifiable expectation
highlighted by research initiated by our joint broker, SP Angel, and which can
be accessed via our website. SP Angel has recommended the Company's shares as
a "buy" and provides a comparison to other junior copper explorers across the
AIM, TSX, and ASX markets which clearly emphasises the relatively undervalued
nature of the Company.
Patrick L Cheetham
Managing Director
30 May 2023
Consolidated Income Statement
for the six-months' period to 31 March 2023
Six months Six months Twelve months
to 31 March to 31 March to 30 September
2023 2022 2022
Unaudited Unaudited Audited
£ £ £
Revenue 75,944 89,906 171,052
Administration costs (294,796) (305,933) (566,675)
Pre-licence exploration costs/impairment costs (34,237) (26,807) (80,843)
Impairment of deferred exploration asset
- (361,379) (699,484)
Operating loss (253,089) (604,213) (1,175,950)
Interest receivable 235 20 133
Loss before income tax (252,854) (604,193) (1,175,817)
Income tax - - -
Loss for the period attributable to equity holders of the parent
(252,854) (604,193) (1,175,817)
Loss per share - basic and diluted (pence) (0.02) (0.05) (0.08)
(Note 2)
Consolidated Statement of Comprehensive Income
for the six-months' period to 31 March 2023
Six months t Six months to Twelve months to
31 March 31 March 30 September
2023 2022 2022
Unaudited Unaudited Audited
£ £ £
Loss for the period
(252,854) (604,193) (1,175,817)
Items that could be reclassified subsequently
to the Income Statement:
Foreign exchange translation differences on foreign currency net investments
in subsidiaries
(44,041) 11,229 136,753
Items that will not be reclassified to the Income Statement:
Changes in the fair value of equity investments (3,647) (23,053) (26,346)
Total comprehensive loss for the period attributable to equity holders of the
parent
(300,542) (616,017) (1,065,410)
Company Registration Number 03821411
Consolidated Statement of Financial Position
at 31 March 2023
As at As at As at
31 March 31 March 30 September
2023 2022 2022
Unaudited Unaudited Audited
£ £ £
Non-current assets
Intangible assets 603,889 624,920 542,907
Property, plant & equipment 2,476 3,071 2,398
Other investments 18,003 27,443 24,150
624,368 655,434 569,455
Current assets
Receivables 62,857 103,569 272,667
Cash and cash equivalents 217,967 620,626 59,414
280,824 724,195 332,081
Current liabilities
Trade and other payables (67,815) (119,784) (80,929)
Net current assets
213,009 604,411 251,152
Provisions for liabilities and charges (13,825) (7,154) (15,158)
Net assets 823,552 1,252,691 805,449
Equity
Called up Ordinary Shares 180,251 153,626 153,626
Share premium account 12,379,636 12,101,760 12,101,761
Capital redemption reserve 2,644,061 2,644,061 2,644,061
Merger reserve 131,096 131,096 131,096
Share option reserve 105,931 99,835 101,985
Fair value reserve (20,663) (13,723) (17,016)
Foreign currency reserve 416,428 334,945 460,469
Accumulated losses (15,013,188) (14,198,909) (14,770,533)
Equity attributable to the owners of the parent 823,552 1,252,691 805,449
Consolidated Statement of Changes in Equity
Capital redemption reserve
Ordinary Share Share Fair Foreign
Share Premium Merger Warrant Value Currency Accumulated
Capital Account Reserve Reserve Reserve Reserve Losses Total
£ £ £ £ £ £ £ £
At 30 September 2021 118,332 11,567,055 2,644,061 131,096 80,048 9,330 323,716 (13,604,166) 1,269,472
Loss for the period - - - - - - - (604,193) (604,193)
Change in fair value - - - - - (23,053) - - (23,053)
Exchange differences - - - - - - 11,229 - 11,229
Total comprehensive loss for the period - - - - - (23,053) 11,229 (604,193) (616,017)
Share issue 35,294 534,706 - - - - - - 570,000
Share based payments expense - - - - 29,237 - - - 29,237
Transfer of expired warrants - - - - (9,450) - - 9,450 -
At 31 March 2022 153,626 12,101,761 2,644,061 131,096 99,835 (13,723) 334,945 (14,198,909) 1,252,692
Loss for the period - - - - - - - (571,624) (571,624)
Change in fair value - - - - - (3,293) - - (3,293)
Exchange differences - - - - - - 125,524 - 125,524
Total comprehensive loss for the period - - - - - (3,293) 125,524 (571,624) (449,393)
Share issue - - - - - - - - -
Cancellation of deferred shares - - - - - - - - -
Share based payments expense - - - - 2,150 - - - 2,150
Transfer of expired warrants - - - - - - - - -
At 30 September 2022 153,626 12,101,761 2,644,061 131,096 101,985 (17,016) 460,469 (14,770,533) 805,449
Loss for the period - - - - - - - (252,854) (252,854)
Change in fair value - - - - - (3,647) - - (3,647)
Exchange differences - - - - - - (44,041) - (44,041)
Total comprehensive loss for the period - - - - - (3,647) (44,041) (252,854) (300,542)
Share issue 26,625 277,875 - - - - - - 304,500
Share based payments expense - - - - 14,145 - - - 14,145
Transfer of expired warrants - - - - (10,199) - - 10,199 -
At 31 March 2023 180,251 12,379,636 2,644,061 131,096 105,931 (20,663) 416,428 (15,013,188) 823,552
Consolidated Statement of Cash Flows
for the six-months' period to 31 March 2023
Six months Six months Twelve months
to 31 March to 31 March to 30 September
2023 2022 2022
Unaudited Unaudited Audited
£ £ £
Operating activity
Operating Lloss (253,089) (604,213) (1,175,950)
Depreciation charge 768 869 1,661
Share based payment charge 14,145 29,237 31,387
Broker fee paid in shares 4,500 - -
Impairment of deferred exploration asset - 361,379 699,484
Reclamation provision - (8,840) -
(Increase)/decrease in receivables 209,810 (22,545) (35,049)
Increase/(decrease) in payables (13,114) 42,934 4,079
Net cash outflow from operating activity (36,980) (201,179) (474,388)
Investing activity
Interest received 235 20 133
Exploration and development expenditures (115,162) (222,876) (561,431)
Purchase of property, plant & equipment (769) (245) (107)
Cash receipt from disposal of equity investments 28,333 - -
Net cash outflow from investing activity (87,363) (223,101) (561,405)
Financing activity
Issue of share capital (net of expenses) 304,500 570,000 570,000
Net cash inflow from financing activity 304,500 570,000 570,000
Net increase/(decrease) in cash and cash equivalents (465,793)
180,157 145,720
Cash and cash equivalents at start of period 59,414 472,733 472,733
Exchange differences (21,604) 2,173 52,474
59,414
Cash and cash equivalents at end of period 217,967 620,626
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 2023 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 2022.
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-month period
ended 31 March 2023 and the six-month period ended 31 March 2022 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 2022 does not constitute the full statutory
accounts for that period. The Annual Report and Financial Statements for the
year ended 30 September 2022 have been filed with the Registrar of
Companies. The Independent Auditor's Report on the Annual Report and
Financial Statement for the year ended 30 September 2022 was unqualified,
although it did draw attention to matters by way of emphasis in relation to
going concern, and did not contain a statement under 498(2) or 498(3) of the
Companies Act 2006.
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
2023 2022 2022
Unaudited Unaudited Audited
Loss for the period (£) (252,854) (604,193) (1,175,817)
Weighted average shares in issue (No.) 1,340,117,157 1,320,361,876 1,428,608,504
Basic and diluted loss per share (pence) (0.02) (0.05) (0.08)
The loss attributable to ordinary shareholders and the weighted average number
of ordinary shares used for the purpose of calculating diluted earnings per
share are identical to those used to calculate the basic earnings per ordinary
share. This is because the exercise of share warrants would have the effect of
reducing the loss per ordinary share and is therefore not dilutive under the
terms of IAS33.
3. Share capital
During the six-month period to 31 March 2023 the following share issues took
place:
An issue of 250,000,000 0.01p Ordinary Shares at 0.12p per share, by way of
placing, for a total consideration of £300,000 before expenses (3 February
2023).
An issue of 16,250,000 0.01p Ordinary Shares at 0.12p per share, as part of
placing and settlement of broker commission and fee, for a total consideration
of £19,500 (3 February 2023).
The total number of Ordinary Shares in issue on 31 March 2023 was
1,802,513,621 (30 September 2022: 1,536,263,621).
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