REG - Thor Mining PLC - Half-year Report
28 February 2019
THOR MINING PLC
Half-Yearly Report for the six months ended 31 December 2018
HIGHLIGHTS
· Molyhil Tungsten and Molybdenum Project (Australia): Completion of an upgraded Definitive Feasibility Study (DFS) demonstrated; a low capital investment, and operating costs in the lowest quartile, driving attractive returns and a very early return on capital.
· Completion of the acquisition of an interest in the nearby Bonya tenements with 13 outcropping tungsten deposits, plus the small Bonya copper resource, providing significant potential to extend the profitable life of the proposed Molyhil operation.
· Pilot Mountain Tungsten Project (USA): Scoping Study released in September 2018, indicates potential for a profitable 12-year mine life, while a revised mineral resource estimate boosted tungsten resources, and included zinc for the first time.
· Kapunda Copper (Australia): Substantial CRCP research grant for the Australian Commonwealth Government, along with demonstration of project proof of concept.
REVIEW OF OPERATIONS
COMMODITY PRICES
Tungsten pricing fell by approximately 20% early in the half year, then settled at between US$260/mtu and US$270/mtu. Despite this reduction the Molyhil project remains very well positioned with expected production costs of US$90/mtu, in the first quartile of global production costs. Molybdenum pricing has maintained the gains made in early 2018, and continues to sit in the US$11/lb to US$12/lb range.
Molyhil Tungsten/Molybdenum project (NT, Australia) (100% Thor)
The Molyhil project is located 220 kilometres north-east of Alice Springs (320km by road).
In August 2018, Thor announced an updated definitive feasibility study DFS for its wholly-owned Molyhil tungsten project, with robust outcomes.
A full background on the project is available on the Thor Mining website www.thormining.com/projects .
Table A. Molyhil DFS Key Features (announced 23 August 2018)
http://www.thormining.com/-/thor/lib/docs/asx%20releases/20180823%20ASX%20Molyhil%20DFS.pdf
Project NPV (@5%) post tax & royalties
A$101 million
All Equity Case
Project IRR post tax & royalties
59%
All Equity Case
Project finance requirement
US$43million
Project Capex
A$69 million
Break even APT tungsten price
US$230/mtu
Life of Mine C1 Cash Cost
US$90/mtu
Life of Mine EBITDA
A$239 million
Payback from 1st production
< 18 months
Project Life
7 years
Potential for underground extension plus Bonya
Average feed grade
0.29% WO₃
0.48% WO₃ after ore sorting
0.12% Mo
0.20% Mo after ore sorting
Operating throughput
Crushing & Sorting Milling/Flotation etc
531,000 tpa
324,000 tpa
After ore sorting
Annual Production Average
125,000 mtu *
Approximately 1.2% of global market
* 1mtu = 10Kg of contained WO₃
Following the completion of the DFS, the Company has appointed a Corporate Advisor to assist with finalising offtake agreements for the scheelite and molybdenite concentrates, and with project financing.
Bonya (Tungsten, Copper, Vanadium)
Thor completed the acquisition of an interest in the Bonya licence area close to Molyhil during the period. An initial drilling program is expected to commence March 2019.
During the period, the Company announced a maiden resource estimate for the Bonya copper deposit of 230,000 tonnes, grading 2.0% Copper (Cu), containing 4,600 tonnes of copper.
Table B: Bonya Copper Inferred Resource Estimate - Announced 26 November 2018
BONYA COPPER
Resource
Copper
000t
Grade %
Contained metal (t)
Inferred
Oxidised
20
1.0
200
Fresh
210
2.0
4,400
Sub-Total
230
2.0
4,600
Note:
· 40% owned by Thor Mining Plc
· The Company is not aware of any changes which could affect this resource estimate
Pilot Mountain Tungsten project (Nevada, USA) (100% Thor)
The Pilot Mountain Project, acquired in 2014, is located approximately 200 kilometres ("km") south of the city of Reno and 20km east of the town of Mina located on US Highway 95.
The Pilot Mountain Project is comprised of four tungsten deposits: Desert Scheelite, Gunmetal, Garnet and Good Hope. All are in close proximity, approximately three km, of each other and have been subjected to small-scale mining activities at various times during the 20th century.
A full background on the project is available on the Thor Mining website www.thormining.com/projects.
Pilot Mountain Scoping Study (announced 6 September 2018)
www.thormining.com/-/thor/lib/docs/asx%20releases/20180907%20Pilot%20Mountian%20Scoping%20Study.pdf
Table C: Desert Scheelite production supplemented with 120,000 tpa from Garnet and improved recovery and cost factors
Net Pre-Tax Income (US$ million)
Opex - US$/mtu produced
Payback Period
Base Case
US$125
242
36 months
Add Contribution from Garnet
120,000tpa ore
US$202
215
18 months
Scheelite Recovery - 85% improvement plus Garnet
85%
recovery
US$297
182
15 months
Mining costs 15% lower with higher volumes
15%
US$317
171
12 months
Table D: Pilot Mountain Resource Summary 2018 - Announced 13 December 2018
Resource
WO3
Ag
Cu
Zn
MT
Grade
%
Contained metal (t)
Grade
g/t
Contained metal (t)
Grade
%
Contained metal (t)
Grade
%
Contained metal (t)
Garnet
Indicated
-
-
Inferred
1.83
0.36
6,590
Sub Total
1.83
0.36
6,590
Desert Scheelite
Indicated
9.01
0.26
23,400
20.73
187
0.15
13,200
0.41
37,100
Inferred
1.69
0.25
4,300
12.24
21
0.16
2,800
0.19
3,200
Sub Total
10.70
0.26
27,700
19.38
207
0.15
16,000
0.38
40,300
Summary
Indicated
9.01
0.26
23,400
Inferred
3.53
0.31
10,890
Pilot Mountain Total
12.53
0.27
34,290
Note:
· 100% owned by Thor Mining PLC
· All figures are rounded to reflect appropriate levels of confidence. Apparent differences may occur due to rounding
· Cut-off grade 1,500ppm WO₃
· The Company is not aware of any information or data which would materially affect this previously announced resource estimate, and all assumptions and technical parameters relevant to the estimate remain unchanged.
Kapunda Copper Project (SA Australia - Thor earning into 45% effective interest)
The Company is earning a 45% effective interest in the Kapunda Copper Project in South Australia, via an agreement to earn up to a 60% interest in a newly incorporated private Australian company, Environmental Copper Recovery SA Pty Ltd. ("ECR"), initially via convertible loan notes of up to A$1.8 million, which will be used to fund field test work and feasibility activities at Kapunda over the next 3 years. In turn ECR has entered into an agreement to earn, in two stages, up to 75% of the rights over metals which may be recovered via in-situ recovery ("ISR") contained in the Kapunda deposit from Australian listed company, Terramin Australia Limited ("Terramin" ASX: "TZN")
Kapunda is located approximately 90 kilometres north of Adelaide, and has ready access to substantial nearby infrastructure.
A full background on the project is available on the Thor Mining website www.thormining.com/projects.
In July 2018, the Company advised that the Australian Government Ministry for Science, Jobs and Innovation announced an offer to ECR for research funding of A$2,851,303, over a 30 month period, for the Kapunda In-Situ Copper and Gold Recovery Trial.
In December 2018, Thor announced that proof of concept for ISR at Kapunda had been established improving the level of confidence in technical aspects of the proposed development from both an environmental and a copper production perspective.
Capital Raisings
During the period, the Company's cash balances were augmented via the exercise of 52,699,789 warrants and options, at various exercise prices, raising £625,623 at an average conversion price of 1.19 pence.
Board Changes
During the period Paul Johnson, Non-Executive Director, resigned from the Board of Thor. The Board wish to thank Paul for his contribution to the Company during his tenure.
Comprehensive Income
The comprehensive income statement records a comprehensive loss of £455,000 (2017: £779,000 loss) after taking into account unrealised exchange loss of £49,000 (2017: £239,000 loss).
Mick Billing
Executive Chairman
28 February 2019
Competent Person's statements
The information in this report that relates to exploration results, and exploration targets, is based on information compiled by Richard Bradey, who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Bradey is an employee of Thor Mining PLC. He has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Richard Bradey consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcements and, in the case of estimates of Mineral Resources or Ore Reserves, that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. The company confirms that the form and context in which the Competent Person's findings are presented have not been materially modified from the original market announcement.
Condensed Consolidated Statement of Comprehensive Income
For the 6 months ended 31 December 2018
Note
£'000
£'000
£'000
6 months ended
31 December 2018
6 months ended
31 December 2017
Year
ended
30 June
2018
Unaudited
Unaudited
Audited
Administrative expenses
(40)
(39)
(92)
Corporate expenses
(335)
(342)
(705)
Share based payments expense
(22)
(6)
(229)
Unrealised gain on financial assets
-
-
-
Realised gain on financial assets
-
-
-
Exploration expenses
3
(16)
(159)
(245)
Write off/Impairment of exploration assets
3
-
-
-
Operating Loss
(413)
(546)
(1,271)
Interest received
5
-
13
Interest paid
-
-
(1)
Sundry Income
2
6
10
Loss before Taxation
(406)
(540)
(1,249)
Taxation
-
-
-
Loss for the period
(406)
(540)
(1,249)
Other comprehensive income:
Exchange differences on translating foreign operations
(49)
(239)
(471)
Other comprehensive income for the period, net of income tax
(49)
(239)
(471)
Total comprehensive income for the period
(455)
(779)
(1,720)
Basic loss per share
2
(0.06)p
(0.12)p
(0.23)p
Condensed Consolidated Statement of Financial Position
For the 6 months ended 31 December 2018
Note
£'000
£'000
£'000
31 December 2018
31 December 2017
30 June
2018
Unaudited
Unaudited
Audited
ASSETS
Non-current assets
Intangible assets - deferred exploration costs
3
10,778
10,051
10,133
Investments at cost
103
103
103
Loan receivable (Convertible note)
4
167
116
113
Deposits to support performance bonds
20
21
21
Plant and equipment
18
25
22
Total non-current assets
11,086
10,316
10,392
Current assets
Cash and cash equivalents
1,048
1,321
1,374
Trade receivables and other assets
62
62
49
Total current assets
1,110
1,383
1,423
Total assets
12,196
10,699
11,815
LIABILITIES
Current liabilities
Trade and other payables
(188)
(213)
(286)
Provisions
(43)
(22)
(50)
Non-interest bearing liabilities
-
-
-
Interest bearing liabilities
(5)
(10)
(9)
Total current liabilities
(236)
(245)
(345)
Interest bearing liabilities
-
(5)
-
Total non-current liabilities
-
(5)
-
Total liabilities
(236)
(250)
(345)
Net assets
11,960
11,449
11,470
Equity
Issued share capital
5
3,682
3,671
3,675
Share premium
5
20,631
18,930
19,693
Foreign exchange reserve
2,135
2,416
2,184
Merger reserve
405
405
405
Share based payments reserve
295
107
297
Retained losses
(15,188)
(14,080)
(14,784)
Total equity
11,960
11,449
11,470
Condensed Consolidated Statement of Change in Equity
For the 6 months ended 31 December 2018
£'000
£'000
£'000
£'000
£'000
£'000
£'000
Issued share capital
Share premium
Retained losses
Foreign Currency Translation Reserve
Merger Reserve
Share Based Payment Reserve
Total
Balance at 1 July 2017
3,648
16,641
(13,554)
2,655
405
115
9,910
Loss for the period
-
-
(540)
-
-
-
(540)
Foreign currency translation reserve
-
-
-
(239)
-
-
(239)
Total comprehensive loss for the period
-
-
(540)
(239)
-
-
(779)
Transactions with owners in their capacity as owners
Shares issued
23
2,339
-
-
-
-
2,362
Cost of shares issued
-
(50)
-
-
-
-
(50)
Share options issued
-
-
-
-
-
6
6
Share options exercised
-
-
14
-
-
(14)
-
At 31 December 2017
3,671
18,930
(14,080)
2,416
405
107
11,449
Balance at 1 July 2017
3,648
16,641
(13,554)
2,655
405
115
9,910
Loss for the period
-
-
(1,249)
-
-
-
(1,249)
Foreign currency translation reserve
-
-
-
(471)
-
-
(471)
Total comprehensive (loss) for the period
-
-
(1,249)
(471)
-
-
(1,720)
Transactions with owners in their capacity as owners
Shares issued
27
3,105
-
-
-
-
3,132
Cost of shares issued
-
(53)
-
-
-
-
(53)
Share options exercised
-
-
19
-
-
(19)
-
Share options issued
-
-
-
-
201
201
At 30 June 2018
3,675
19,693
(14,784)
2,184
405
297
11,470
Balance at 1 July 2018
3,675
19,693
(14,784)
2,184
405
297
11,470
Loss for the period
-
-
(406)
-
-
-
(406)
Foreign currency translation reserve
-
-
-
(49)
-
-
(49)
Total comprehensive loss for the period
-
-
(406)
(49)
-
-
(455)
Transactions with owners in their capacity as owners
Shares issued
7
942
-
-
-
-
949
Cost of shares issued
-
(4)
-
-
-
-
(4)
Share options issued
-
-
-
-
-
-
-
Share options exercised
-
-
2
-
-
(2)
-
At 31 December 2018
3,682
20,631
(15,188)
2,135
405
295
11,960
Condensed Consolidated Statement of Cash Flow
For the 6 months ended 31 December 2018
£'000
£'000
£'000
6 months ended
31 December 2018
6 months ended
31 December 2017
Year
ended
30 June
2018
Unaudited
Unaudited
Audited
Cash flows from operating activities
Operating Loss
(413)
(546)
(1,271)
Sundry income
2
5
10
(Increase)/decrease in trade and other receivables
3
(29)
(66)
Decrease in trade and other payables
(9)
(35)
(43)
Increase/(decrease) in provisions
(6)
2
30
Depreciation
4
4
9
Share settled expense & share-based payments
22
6
229
Net cash outflow from operating activities
(397)
(593)
(1,102)
Cash flows from investing activities
Interest received
9
1
9
Interest paid
-
-
(1)
Purchase of property, plant and equipment
-
(7)
(9)
Purchase of Investment
-
(103)
(103)
Loan advanced (convertible note)
(56)
(116)
(113)
Payments for exploration expenditure
(427)
(502)
(688)
Net cash outflow from investing activities
(474)
(727)
(905)
Cash flows from financing activities
Loans repaid
-
(29)
(28)
Finance lease funding repaid
(5)
(4)
(8)
Net issue of ordinary share capital
561
2,266
3,009
Net cash inflow from financing activities
556
2,233
2,973
Net decrease in cash and cash equivalents
(315)
913
966
Non-cash exchange changes
(11)
3
3
Cash and cash equivalents at beginning of period
1,374
405
405
Cash and cash equivalents at end of period
1,048
1,321
1,374
Notes to the Half-yearly Report
For the 6 months ending 31 December 2018
1. PRINCIPAL ACCOUNTING POLICIES
(a) Presentation of Half-yearly results
The half-yearly results have not been audited, but were the subject of an independent review carried out by the Company's auditors, Chapman Davis LLP. Their review confirmed that the figures were prepared using applicable accounting policies and practices consistent with those adopted in the 2018 annual report and to be adopted in the 2019 annual report. The financial information contained in this half-yearly report does not constitute statutory accounts as defined by Section 435 of the Companies Act 2006.
The half-yearly report has been prepared under the historical cost convention.
The Directors acknowledge their responsibility for the half-yearly report and confirm that, to the best of their knowledge, the interim consolidated financial statements for the six months ended 31 December 2018 have been prepared in accordance with International Financial Reporting Standards, including IAS 34 "Interim Financial Statements", and complies with the requirements for companies with securities admitted to trading on the AIM Market of the London Stock Exchange. This half-year report does not include all the notes of the type normally included in an annual financial report. Accordingly, this report should be read in conjunction with the annual report for the year ended 30 June 2018.
The Directors are of the opinion that on-going evaluations of the Company's interests indicate that preparation of the accounts on a going concern basis is appropriate.
(b) Basis of consolidation
The consolidated financial statements comprise the financial statements of Thor Mining PLC and its controlled entities. The financial statements of controlled entities are included in the consolidated financial statements from the date control commences until the date control ceases. All inter-company balances and transactions have been eliminated in full.
The financial statements of subsidiaries are prepared for the same reporting period as the parent Company, using consistent accounting policies.
2. LOSS PER SHARE
No diluted loss per share is presented as the effect of exercise of outstanding options is to decrease the loss per share.
£'000
£'000
£'000
6 months ended
31 December 2018
6 months ended
31 December 2017
Year
ended
30 June
2018
Unaudited
Unaudited
Audited
Loss for the period
(406)
(540)
(1,249)
Weighted average number of Ordinary shares in issue
Loss per share - basic
667,334,721
(0.06)p
453,883,040
(0.12)p
545,367,864
(0.23)p
Notes to the Half-yearly Report
For the 6 months ending 31 December 2018
3. DEFERRED EXPLORATION COSTS
£'000
£'000
£'000
31 December 2018
31 December 2017
30 June
2018
Cost
Unaudited
Unaudited
Audited
At commencement
10,133
9,867
9,867
Additions
376
404
680
Acquisition
301
-
-
Exchange gain/(loss)
(32)
(220)
(414)
Write off exploration tenements for year
-
-
-
At period end
10,778
10,051
10,133
Impairment
At commencement
-
-
-
Exchange loss
-
-
-
Impairment for period
-
-
-
At period end
-
-
-
Net book value at period end
10,778
10,051
10,133
Having reviewed the deferred exploration and evaluation expenditure at 31 December 2018, the directors are satisfied that no write off or provision for impairment is required.
In the half year ended 31 December 2018, the Group acquired the Bonya tenements, being a 40% interest in EL29701 and 100% of EL29599. Consideration was A$550,000 (£301,000) paid by the issue of 14,527,205 shares at A$0.03786. Refer ASX Announcements 25 September 2018, 19 April 2018 and 28 March 2018.
In the half year ended 31 December 2017, the Group incurred £159,000 in exploration related expenses that were expensed rather than capitalised to deferred exploration costs. £94,000 was a cash settlement of US$125,000 in satisfaction of a pre-existing commitment to pay US$1,500,000 upon first production at Pilot Mountain in Nevada, USA. The remaining £65,000 related to work undertaken on exploration activities on projects that the Group does not have a direct ownership interest, including the Kapunda Project (refer Note 4), the Western Shaw project and exploration due diligence on the US Lithium Project.
4. LOAN RECEIVABLE (CONVERTIBLE NOTE)
On 2 August 2017, the Group signed a binding term sheet to acquire an interest in the historically mined Kapunda copper deposit in South Australia (Kapunda). The Group is investing in an incorporated private Australian company, Environmental Copper Recovery SA Pty Ltd (ECR), initially via convertible notes of up to A$1.8 million, which will be used to fund field test work and feasibility activities at Kapunda over a three-year period. The Group made the first advance to ECR of AUD$200,000 (£116,000) during the year ended 30 June 2018. A further advance of A$100,000 (£56,000) was made during the half year ended 31 December 2018. The balance of the loan at 31 December 2018 is £167,000 after allowing for a foreign currency translation loss of £5,000. Conversion of the convertible notes are at the sole discretion of Thor, and will result in Thor holding up to 60% equity interest in ECR. The term sheet also provides that Thor has immediate Board control of ECR.
In turn, ECR has an agreement to earn a 50% interest in the rights over metals which may be recovered via in-situ recovery at the Kapunda deposit, from Australian ASX listed, Terramin Australia Limited (ASX: TZN), for expenditure of A$2.0 million on field test work. ECR can then opt to earn a further 25% interest through additional expenditure of A$4.0 million.
5. SHARE CAPITAL
£'000
£'000
£'000
31 December 2018
31 December 2017
30 June 2018
Unaudited
Unaudited
Audited
Issued fully paid (Nominal Value)
982,870,766 'Deferred Shares' of £0.0029 each
2,850
2,850
2,850
7,928,958,483 'A Deferred Shares' of £0.000096 each
761
761
761
Ordinary shares of £0.0001 each
71
60
64
3,682
3,671
3,675
Number
Number
Number
31 December 2018
31 December 2017
30 June 2018
Unaudited
Unaudited
Audited
Movement in share capital
Ordinary Shares of 0.01 pence
At commencement
648,573,546
373,013,208
373,013,208
Shares issued for cash
-
121,736,111
131,736,111
Warrants exercised
52,699,789
108,782,217
142,696,647
Shares issued to service providers
1,100,000
Shares issued for acquisition
14,527,205
1,127,580
1,127,580
At period end
716,900,540
604,659,116
648,573,546
£'000
£'000
£'000
31 December 2018
31 December 2017
30 June 2018
Nominal Value
Unaudited
Unaudited
Audited
At commencement
3,675
3,648
3,648
Issued for cash (including warrants exercised)
5
23
27
Issued for acquisition
2
-
-
At period end
3,682
3,671
3,675
6. TURNOVER AND SEGMENTAL ANALYSIS - GROUP
The Group has a number of exploration licenses, and mining leases, in Australia and the US State of Nevada. All exploration licences in Australia are managed as one portfolio. The decision to allocate resources to individual Australian projects in that portfolio is predominantly based on available cash reserves, technical data and the expectations of future metal prices. The Group acquired the exploration assets in the US State of Nevada on 27 October 2014. All of these US licenses are located in the one geological region. Accordingly, the Group has identified its operating segments to be Australia and the United States. This is the basis on which internal reports are provided to the Directors for assessing performance and determining the allocation of resources within the Group.
£'000
£'000
£'000
£'000
Half Year ended 31/12/2018
Head office/ Unallocated
Australia
United States
Consolidated
Revenue
Interest & Sundry Income
7
-
-
7
Total Segment Revenue
7
-
-
7
Total Segment Expenditure
(175)
(238)
-
(413)
Loss from Ordinary Activities before Income Tax
(168)
(238)
-
(406)
Income Tax Benefit/(Expense)
-
-
-
-
Loss after Income Tax
(168)
(238)
-
(406)
As at 31/12/2018
Head office/ Unallocated
Australia
United States
Consolidated
Assets and Liabilities
Segment assets
-
8,756
2,265
11,021
Corporate assets
1,175
-
-
1,175
Total Assets
1,175
8,756
2,265
12,196
Segment liabilities
-
(209)
-
(209)
Corporate liabilities
(27)
-
-
(27)
Total Liabilities
(27)
(209)
-
(236)
Net Assets
1,148
8,547
2,265
11,960
Notes to the Half-yearly Report
For the 6 months ending 31 December 2018
6. TURNOVER AND SEGMENTAL ANALYSIS - GROUP (continued)
£'000
£'000
£'000
£'000
Half Year ended 31/12/2017
Head office/ Unallocated
Australia
United States
Consolidated
Revenue
Interest & Sundry Income
6
-
-
6
Total Segment Revenue
6
-
-
6
Total Segment Expenditure
(153)
(299)
(94)
(546)
Loss from Ordinary Activities before Income Tax
(147)
(299)
(94)
(540)
Income Tax Benefit/(Expense)
-
-
-
-
Loss after Income Tax
(147)
(299)
(94)
(540)
As at 30/06/2018
Head office/ Unallocated
Australia
United States
Consolidated
Assets and Liabilities
Segment assets
-
8,589
1,722
10,311
Corporate assets
1,504
-
-
1,504
Total Assets
1,504
8,589
1,722
11,815
Segment liabilities
-
(320)
-
(320)
Corporate liabilities
(25)
-
-
(25)
Total Liabilities
(25)
(320)
-
(345)
Net Assets
1,479
8,269
1,722
11,470
7. POST BALANCE SHEET EVENTS
On 5 February 2019, Thor announced confirmation of extensive tungsten mineralisation (including high grade zones) from the first stage of exploration at the Samarkand deposit, one of thirteen known tungsten deposits within the Bonya project. The Bonya tenement is held jointly (Thor 40%) with Arafura Resources Limited (ARU: 60%) adjacent to the Molyhil mine project in the Northern Territory of Australia. Thor Mining is the joint venture operator.
Other than the above matter, there were no material events arising subsequent to 31 December 2018 to the date of this report which may significantly affect the operations of the Group, the results of those operations and the state of affairs of the Group in the future.
DIRECTORS, SECRETARY AND ADVISERS
Directors Michael Robert Billing (Executive Chairman)
David Edward Thomas (Non-executive Director)
Alastair Middleton (Non-executive Director)
Richard Bradey (Executive Director)
Paul Johnson (Non-executive Director) - resigned 13 July 2018
In UK
In Australia
Registered Office and Directors' business address
Salisbury House
London Wall
London, EC2M 5PS
United Kingdom
58 Galway Avenue
Marleston, South Australia
Australia 5033
Company Secretaries
Stephen Frank Ronaldson
Ray Ridge
Website
www.thormining.com
www.thormining.com
Nominated Adviser to
the Company
Grant Thornton UK LLP
30 Finsbury Square
London EC2A 1AG
United Kingdom
Auditors to the Company
Chapman Davis LLP
2 Chapel Court
London SE1 1HH
United Kingdom
Solicitors to the Company
Druces LLP
Salisbury House
London Wall
London, EC2M 5PS
United Kingdom
Registrars
Computershare Investor Services Plc
The Pavilions
Bridgewater Road
Bristol BS99 6ZY
United Kingdom
Computershare Investor Services Pty Ltd
Level 5, 115 St Grenfell St
Adelaide, South Australia Australia 5000
INDEPENDENT REVIEW REPORT TO THOR MINING PLC
Introduction
We have been engaged by the Company to review the interim consolidated financial statements for the six months ended 31 December 2018 comprising the Consolidated Statement of Comprehensive Income, Consolidated Statement of Financial Position, Consolidated Statement of Changes in Equity, Consolidated Statement of Cash Flows, and related notes. We have read the other information contained in the interim report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the interim financial statements.
This report is made solely to the Company in accordance with guidance contained in ISRE 2410 (UK and Ireland) "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Auditing Practices Board. Our work has been undertaken so that we might state to the company those matters we are required to state in an independent review report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company, for our work, for this report, or for the conclusions we have formed.
Directors' Responsibilities
The half-yearly financial report is the responsibility of, and has been approved by the Directors. The Directors are responsible for preparing the half-yearly financial report in accordance with the rules of the London Stock Exchange Plc for Companies trading securities on the AIM Market. As disclosed in Note 1 the annual financial statements of the group are prepared in accordance with IFRSs as adopted by the European Union. The condensed set of financial statements included in this half-yearly financial report have been prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" as adopted by the European Union.
Our Responsibility
Our responsibility is to express to the Company a conclusion on the half-yearly financial report based on our review.
Scope of Review
We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity", issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half-yearly financial report for the six months ended 31 December 2018 is not prepared, in all material respects, in accordance with International Accounting Standard 34 as adopted by the European Union and the Disclosure and Transparency Rules of the United Kingdom's Financial Conduct Authority.
CHAPMAN DAVIS LLP
Chartered Accountants
2 Chapel Court
London SE1 1HH
28 February 2019
Enquiries:
Mick Billing
+61 (8) 7324 1935
Thor Mining PLC
Executive Chairman
Ray Ridge
+61 (8) 7324 1935
Thor Mining PLC
CFO/Company
Secretary
Colin Aaronson/
Richard Tonthat/ Ben Roberts
+44 (0) 207 383 5100
Grant Thornton UK LLP
Nominated Adviser
Nick Emerson
+44 (0) 1483 413 500
SI Capital Ltd
Joint Broker
David Hignell / Rob Rees / Isabella Pierre
+44 (0)20 3861 6625
Northland Capital Partners Limited
Joint Broker
Tim Blythe/ Camilla Horsfall
+44 (0) 207 138 3222
Blytheweigh
Financial PR
Updates on the Company's activities are regularly posted on Thor's website www.thormining.com, which includes a facility to register to receive these updates by email, and on the Company's twitter page @ThorMining.
About Thor Mining PLC
Thor Mining PLC (AIM, ASX: THR) is a resources company quoted on the AIM Market of the London Stock Exchange and on ASX in Australia.
Thor holds 100% of the advanced Molyhil tungsten project in the Northern Territory of Australia, for which an updated feasibility study in August 2018¹ suggested attractive returns.
Adjacent Molyhil, at Bonya, Thor holds a 40% interest in deposits of tungsten, copper, and vanadium, including an Inferred resource for the Bonya copper deposit².
Thor also holds 100% of the Pilot Mountain tungsten project in Nevada USA which has a JORC 2012 Indicated and Inferred Resources Estimate³ on 2 of the 4 known deposits. The US Department of the Interior has confirmed that tungsten, the primary resource mineral at Pilot Mountain, has been included in the final list of Critical Minerals 2018.
Thor is also acquiring up to a 60% interest Australian copper development company Environmental Copper Recovery SA Pty Ltd, which in turn holds rights to earn up to a 75% interest in the mineral rights and claims over the resource⁴ on the portion of the historic Kapunda copper mine in South Australia recoverable by way of in situ recovery.
Thor has an interest in Hawkstone Mining Limited, an Australian ASX listed company with a 100% Interest in a Lithium project in Arizona, USA.
Finally, Thor also holds a production royalty entitlement from the Spring Hill Gold project⁵ of:
• A$6 per ounce of gold produced from the Spring Hill tenements where the gold produced is sold for up to A$1,500 per ounce; and
• A$14 per ounce of gold produced from the Spring Hill tenements where the gold produced is sold for amounts over A$1,500 per ounce.
Notes
¹ Refer ASX and AIM announcement of 23 August 2018
² Refer ASX and AIM announcement of 26 November 2018
³ Refer AIM announcement of 13 December 2018 and ASX announcement of 14 December 2018
⁴ Refer AIM announcement of 10 February 2016 and ASX announcement of 12 February 2018
⁵ Refer AIM announcement of 26 February 2016 and ASX announcement of 29 February 2016
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.ENDIR UWUKRKWAUURR
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