REG - URA Holdings PLC - Annual Financial Report
30/04/2024 07:00
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RNS Number : 5169M URA Holdings PLC 30 April 2024
RNS Number : 5169M
URA Holdings PLC
30 April 2024
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DISTRIBUTE THIS ANNOUNCEMENT
URA Holdings plc
("URA" or the "Company")
FINAL RESULTS
URA Holdings plc (LSE: URAH), the gemstone mining company currently focused on
the restart of production at the Gravelotte Emerald Mine ("GEM"), is pleased
to announce its final audited results for the year ended 31 December 2023.
The Annual Report is available to view on the Company's website at
uraholdings.co.uk.
In accordance with Listing Rule 9.6.1 of the UK Financial Conduct Authority
("FCA"), a copy of the 2023 Annual Report will also be submitted to the FCA
via the National Storage Mechanism and will shortly be available to the public
for inspection at:
https://www.fca.org.uk/markets/primary-markets/regulatory-disclosures/national-storage-mechanism
(https://www.fca.org.uk/markets/primary-markets/regulatory-disclosures/national-storage-mechanism)
Key Highlights
• GEM Commences Production: as announced yesterday, production has begun
and first batch of emeralds produced from optical sorter
• Acquisition of GEM Completed: preconditions satisfied in March 2023 at
which time URA became full majority owner of GEM
• Strong Financial Initiatives: Raised £1,570,000 in total through a
number off fundraisings in 2023, with significant board contributions ,
providing essential capital for GEM refurbishment and restart.
• Financial Performance: Strict financial controls on operational
expenses, reflecting our proactive approach to managing the challenges of
fundraising and operational activities.
Fuller details of these developments are contained in the Chairman's Statement
below.
Chairman's Statement
As we look back on a transformative year for URA Holdings Plc, I am proud to
share with you the significant strides we have made towards realizing our
strategic ambitions, underscored by the restart of production and the firsr
emeralds recovered at our pivotal acquisition of the Gravelotte Emerald Mine
(GEM) in South Africa as completed in March 2023. The period under review, has
marked a significant leap in our journey towards becoming a significant
contributor in the gemstone mining sector.
Strategic Acquisitions and Milestones
The acquisition of GEM, in 2023, is the cornerstone of our strategic vision,
reinvigorating a historic mining asset with the potential to become a major
producer once again. Leveraging the comprehensive ACA Howe-penned JORC
compliant resource statement, we are poised to unlock significant value from
this asset. The efforts in refurbishing and upgrading Gravelotte's facilities
during 2023 were instrumental in setting the stage for the commencement of a
new era of production with the actual restart of production announced
yesterday. The processing of stockpiled ore is well underway, with the first
emeralds already successfully recovered, signalling the effectiveness of the
newly installed equipment and processes.
Fundraising and Financial Resilience
The year 2023 was characterized by significant financial activities aimed at
strengthening our operational capabilities and ensuring the successful
resumption of activities at Gravelotte. In May 2023, we successfully raised
£280,000 through a placement and subscription for new ordinary shares and an
additional £50,000 via a convertible loan note, demonstrating the confidence
our investors place in our vision and strategy. In September 2023, we raised
an additional £240,000 through a placing and subscription. Moreover, an
accelerated bookbuild in November 2023 raised £1,000,000, essential for the
refurbishment of Gravelotte and general working capital. All three
fundraisings were strongly supported by the Directors who contributed between
12% and 25% in all three placements conducted during 2023.
Since the end of 2023, we have raised a further £475,000 from two significant
investment institutions, that already had a smaller holding in the Company -
an investment which showed confidence in the future of URA and provided the
final tranche of funds to enable us to bring the mine once again into
production.
In the period in question, the Group incurred a loss of £1.170 million before
tax. This figure includes £25,000 related to the costs of completing the
fundraising activities mentioned earlier and the publishing of a prospectus to
approve the £1,000,000 fundraise. Additionally, £24,000 represents
operational and due diligence costs associated with our strategic initiatives.
Net assets at the period end were £1.785 million underscoring our solid
financial standing and strategic investments.
We always felt that we could bring this historic mine back into production
swiftly and economically, far more so than is the case with new exploration
projects, rather than initially extend exploration over the wider licence area
- which we will of course do over time. We have done this through strict
control on operational expenses, reflecting our proactive approach to
operational activities and managing the challenges of fundraising in these
difficult investment times.
As a responsible and forward-thinking company listed on the London Stock
Exchange, the Company is dedicated to ensuring its long-term viability through
strategic planning, prudent risk management, and a steadfast commitment to
sustainable growth.
Financial prudence is a cornerstone of our approach to long-term viability. We
rigorously manage our costs to optimize efficiency and preserve profitability.
URA is committed to safeguarding its long-term viability by managing risks,
fostering stakeholder engagement, and upholding the highest standards of
corporate governance and conduct. We are confident in our ability to deliver
sustainable value to our shareholders and stakeholders for many years to come.
Gravelotte
Shareholders are already fully aware that we conditionally acquired Gravelotte
in 2022 on exceptionally favourable terms and that we completed the
acquisition unconditionally on 27(th) February 2023. As announced last year,
we commissioned a report from A.C.A Howe which showed a very significant
emerald resource and indicated the much larger potential over the licence area
as a whole. As already stated, we decided that the best route forward would be
to refurbish the mine and bring it back into production as quickly and cost
effectively as possible, thereby reducing our exposure to the currently
challenging capital markets, leaving more detailed exploration of the larger
site for the future once production is well established.
Work continued onsite throughout 2023 and it had reached an advanced stage by
the year end. I am pleased to report that following a successful
commissioning phase in 2024 we have now started phased emerald production.
This has been achieved through the efforts and hard work of our small but
experienced production team.
Zambian Exploration Licenses
Our strategic exploration licences in Zambia and the potential of the assets
under our stewardship represent future pathways for growth and value creation.
While Gravelotte remains our immediate focus, we are poised to leverage our
broader asset portfolio to ensure sustainable growth and shareholder value in
the years to come. We are investigating various options available to us to
unlock value from the Zambian exploration licences, including the potential
sale or Joint Venture of the licences and have had initial high-level
engagement with potential Joint Venture partners.
Looking Ahead
Following the successful commissioning of our processing and sorting plants,
phased production at GEM has commenced as scheduled and within budget as per
our announcement of 29 April 2024 Over the coming months, production will be
increased and systems, processes, and equipment will be optimised leading to
our first trial sales event in the second half of 2024. We are proud and
excited about this transition from an exploration company to a producer of the
increasingly popular gem, emeralds, on an increasing scale.
Acknowledgments
I wish to extend my deepest appreciation to our shareholders, the board of
directors, and our dedicated team for their unwavering support and commitment.
The collective efforts of everyone involved have been crucial in navigating
the challenges and opportunities of the past year.
As we move forward, our journey is marked by a clear strategic vision and a
commitment to operational excellence. Together, we stand on the brink of a
promising future, poised for growth and success.
Thank you for your continued support and belief in URA Holdings Plc.
Edward Nealon
Chairman, URA Holdings Plc
Enquiries:
URA Holdings plc
+44 (0)746 368 6497
Chief Executive Officer Bernard Olivier
Director Peter Redmond
Chief Operating Officer Jeremy Sturgess-Smith
info@uraholdingsplc.co.uk
Peterhouse Capital Limited
+44 (0)20 7469 0930
Joint Corporate Broker
Lucy Williams
Duncan Vasey
Capital Plus Partners
+44 (0)203 821 6169
Joint Corporate Broker
+44 (0)203 821 6168
Keith Swann
Jon Critchley
CMC Markets
+44 (0)20 3003 8632
Joint Corporate Broker
Douglas Crippen
CONSOLIDATED AND COMPANY STATEMENT OF COMPREHENSIVE INCOME
GROUP COMPANY
31 Dec 2023 31 Dec 2022 31 Dec 2023 31 Dec 2022
£'000s £'000s £'000s £'000s
Note Restated Restated
Continuing operations
Operating expenses (1,166) (600) (906) (570)
Loan amounts written off - (264) - (264)
Amortisation / Impairment - (199) - (200)
Finance costs (4) - - -
Loss before taxation (1,170) (1,063) (906) (1,034)
Taxation 3 - - - -
Loss for the period from continuing operations 4 (1,170) (1,063) (906) (1,034)
Other comprehensive income - - - -
Total comprehensive loss for the period (1,170) (1,063) (906) (1,034)
Earnings per share
Basic earnings per share (pence) 17 (0.46p) (0.79p) (0.36p) (0.76p)
Diluted earnings per share (pence) 17 (0.46p) (0.79p) (0.36p) (0.76p)
CONSOLIDATED AND COMPANY STATEMENT OF FINANCIAL POSITION
GROUP 31 Dec 2023 31 Dec 2022 1 Jan 2022
£'000s £'000s £'000s
ASSETS Note Restated Restated
Non-current assets
Exploration asset 10 153 11 -
Goodwill 11 1,550 995 -
Investment in Subsidiary 7 - - -
Property, plant and equipment 8 31 - -
Right of use asset 9 34 - -
Total Non-current Assets 1,768 1,006 -
Current assets
Other receivables 6 159 27 37
Cash and cash equivalents 674 362 99
Total Current Assets 833 389 136
Total Assets 2,601 1,395 136
LIABILITIES
Non-current liabilities
Lease liabilities 9 (26) - -
Other payables 13 (436) - -
Total non -current liabilities (462) - -
Current liabilities
Trade and other payables 12 (345) (132) (82)
Lease liabilities 9 (9) (132) -
Total Current-liabilities (354) (132) (82)
Total liabilities (816) (132) (82)
Net Assets 1,785 1,263 54
EQUITY
Share capital 14 25 14 3
Share premium 14 3,938 2,546 342
Other reserves 14 291 57 -
Retained earnings (2,469) (1,354) (291)
Total Equity 1,785 1,263 54
COMPANY 31 Dec 2023 31 Dec 2022 1 Jan 2022
£'000s £'000s £'000s
ASSETS Note Restated Restated
Non-current assets
Exploration asset 10 - - -
Goodwill 11 - - -
Investment in Subsidiary 7 1,536 1,000 -
Property, plant and equipment 8 - - -
Right of use asset 9 - - -
Total Non-current Assets 1,536 1,000 -
Current assets
Other receivables 6 502 48 37
Cash and cash equivalents 667 362 99
Total Current Assets 1,169 410 136
Total Assets 2,705 1,410 136
LIABILITIES
Non-current liabilities
Lease liabilities 9 - - -
Other payables 13 (436) - -
Total non -current liabilities (436) - -
Current liabilities
Trade and other payables 12 (145) (118) (82)
Lease liabilities 9 - - -
Total Current-liabilities (145) (118) (82)
Total liabilities (581) (118) (82)
Net Assets 2,124 1,292 54
EQUITY
Share capital 14 25 14 3
Share premium 14 3,938 2,546 342
Other reserves 14 392 57 -
Retained earnings (2,231) (1,325) (291)
Total Equity 2,124 1,292 54
CONSOLIDATED AND COMPANY STATEMENTS OF CHANGES IN EQUITY
GROUP Share Share Other Retained Total
Capital premium Reserves earnings shareholders'
equity
£'000s £'000s £'000s £'000s £'000s
Balance at 1 January 2022 3 342 - (291) 54
Total comprehensive income - - - (1,012) (1,012)
Net equity issued 11 2,204 - - 2,215
Share option reserve - - 6 - 6
Balance at 31 14 2,546 6 (1,303) 1,263
December 2022
Prior period adjustment (Note 20) - - 51 (51) -
As at 01 January 2023(restated) 14 2,546 57 (1,354) 1,263
Total comprehensive income - - - (1,115) (1,115)
Net equity issued 11 1,392 - - 1,403
FX translation reserve - - (101) - (101)
Share warrant reserve - - 250 - 250
Share option reserve - - 85 - 85
Balance at 31 25 3,938 291 (2,469) 1,785
December 2023
COMPANY Share Share Other Retained Total
Capital premium Reserves earnings shareholders'
equity
£'000s £'000s £'000s £'000s £'000s
Balance at 1 January 2022 3 342 - (291) 54
Total comprehensive income - - - (983) (983)
Net equity issued 11 2,204 - - 2,215
Share option reserve - - 6 - 6
Balance at 31 14 2,546 6 (1,274) 1,292
December 2022
Prior period adjustment (Note 20) - - 51 (51) -
At 01 January 2023 (restated) 14 2,546 57 (1,325) 1,292
Total comprehensive income - - - (906) (906)
Net equity issued 11 1,392 - - 1,403
Foreign Exchange - - - - -
Share warrant reserve - - 250 - 250
Share option reserve - - 85 - 85
Balance at 31 25 3,938 392 (2,231) 2,124
December 2023
CONSOLIDATED AND COMPANY STATEMENT OF CASH FLOWS
GROUP COMPANY
Note 31 Dec 2023 31 Dec 2022 31 Dec 2023 31 Dec 2022
£'000s £'000s £'000s £'000s
Cash flows from operating activities Restated Restated
Loss for the period 4 (1,170) (1,063) (906) (1,034)
Finance costs 4
Amortisation /Depreciation and impairment 22 199 - 200
Share warrant reserve 250 - 250 -
Share based payment 85 57 85 57
Contingent consideration 436 - 436 -
(Increase)/decrease in receivables 6 (131) 10 (453) (12)
Increase/(decrease) in payables 10 36 50 27 36
Net cash used in operating activities (468) (747) (561) (753)
Investing activities
Purchase of subsidiary, Property plant and equipment and intangible asset 7, 9 (559) (1,206) (536) (1,200)
Net cash used in investing activities (559) (1,206) (536) (1,200)
Financing activities
Issue of shares for cash, net of costs 1,402 2,216 1,402 2,216
Finance costs (4) - - -
Net cash from financing activities 1,398 2,216 1,402 2,216
Increase / (Decrease) in cash and cash equivalents 371 263 305 263
Foreign exchange translation differences (59) - - -
Cash and cash equivalents at beginning of the period 362 99 362 99
Cash and cash equivalents at the end of the period 674 362 667 362
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