REG - Xtract Resources plc - Half-year Report
30/09/2022 11:00
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RNS Number : 3555B Xtract Resources plc 30 September 2022
For immediate release
30 September 2022
Xtract Resources Plc
("Xtract" or "the Company")
Unaudited Interim Results for the six months ended 30 June 2022
Xtract Resources Plc (AIM: XTR), the gold producer, exploration and
development company with projects in Australia, Mozambique and Zambia,
announces its unaudited interim results for the six months ended 30 June 2022
("Period").
Highlights
Financial
· Revenue from gold sales of £0.97m (H1 2021: £0.16m)
· Net loss of £0.03m (H1 2021: £2.20m)
· Administration & operating expenses £1.33m (H1 2021: £2.19m
(including a share-based payment charge of £1.47m))
· Cash of £1.24m (FY 2021: £8.08m)
· Net assets of £21.25m (FY 2021: £20.66m)
· Total alluvial and hard rock mining contractor gold production of
121.8kg (equivalent to 3,916 ounces) (H1 2021: 22.1kg (equivalent to 711
ounces))
· Total of 23.9kg (equivalent to 769 ounces) attributable to the
Company's Mozambican operating subsidiary, Explorator (H1 2021: 6.2kg
(equivalent to 199 ounces))
Operational
· The completed Phase Two drilling programme at the Bushranger
porphyry copper-gold project succeeded in adding significant extensions to the
Racecourse prospect.
· Testing of a geophysical anomaly led to the discovery of a
totally new porphyry intrusion at Ascot prospect, approximately 1.5km to the
south of the Racecourse Mineral Resource.
· The Ascot discovery hole BRDD-21-035 returned substantial
intervals of copper and gold mineralisation over 164m grading 0.35% CuEq from
552m, including 64m at 0.58% CuEq from 552m. Follow up drilling further
defined and extended the Ascot discovery.
· The Company will now utilise all the Phase Two drilling data to
update the Racecourse prospect mineral resource and define a maiden mineral
resource for the Ascot prospect. The open pit mining study for the Racecourse
prospect will also be updated
· At the Manica gold project in Mozambique all construction and
installation work at the Fair Bride mine was completed and the processing
plant has entered into commissioning.
· Clearing and pre stripping were carried out and ore has been
stockpiled and hauled to the plant site, with the introduction of low-grade
ore to commission all parts of the processing circuit.
Operational Overview
During the period the Company continued with its ongoing assessment of the
Bushranger copper-gold project located within the Lachlan Fold Belt district
of New South Wales, the foremost porphyry copper-gold belt in Australia.
A Phase Two drilling programme was commenced on the Bushranger Project in July
2021, with the initial goal of extending, and better defining, the Racecourse
Mineral Resource, which is currently defined as 71Mt @ 0.44% Cu and 0.064g/t
Au, at a 0.3% Cu cut-off. The Phase Two drilling programme was expanded in
scope throughout the reporting period to include the testing of Induced
Polarisation (IP) MIMDAS ground geophysical anomalies, outside of the current
limits of the Racecourse Mineral Resource. Testing of a MIMDAS geophysical
anomaly led to the discovery of the Ascot prospect, approximately 1.5km to the
south of the Racecourse Mineral Resource, with drill hole BRDD-21-035
returning substantial intervals of copper and gold mineralisation, with a best
intercept of 164m at 0.35% CuEq from 552m, which includes 64m at 0.58% CuEq
from 552m. Follow up drilling during the Phase Two drilling programme
further defined and extended the Ascot discovery.
Immediately following the reporting period, the Bushranger Project Phase two
drilling programme was concluded. A total of 49 diamond drill holes were
completed at the Racecourse and Ascot Prospects for 33,354.80m of drilling,
during the period 15 July 2021 until 9 July 2022. The Phase Two drilling
programme was highly successful with significant extensions to the Racecourse
prospect porphyry copper-gold mineralisation confirmed and the discovery of a
totally new porphyry copper-gold intrusion at the Ascot Prospect.
The Company will now utilise all the Phase Two drilling data to update the
Racecourse prospect mineral resource and define a maiden mineral resource for
the Ascot prospect. The open pit mining study for the Racecourse prospect,
which was completed in April 2021, will also be updated using the new
Racecourse mineral resource when it is completed.
The results from the Company's alluvial and hard rock operations were
satisfactory, despite a challenging few months of difficult operating
conditions with an aggressive rain and cyclone season.
All construction and installation work relating to the Fair Bride hard rock
project in Mozambique was completed. At the end June 2022, production at Fair
Bride started with the introduction of low-grade ore to commission all parts
of the processing circuit.
Summary of Company Projects
Australia
Bushranger Project
During the reporting period the Phase Two drilling programme on the Bushranger
Project in central New South Wales continued at a rapid pace. The objectives
of the Phase 2 drilling programme at Racecourse and Ascot Prospects were as
follows:
1. Extend to the northwest and southeast the currently defined
Racecourse prospect Inferred Mineral Resource of 71Mt @ 0.44% Cu and 0.064g/t
Au, at a 0.3% Cu cut-off
2. Test a series of IP resistivity low anomalies to determine if the
resistivity lows relate to areas of increased intensity of copper
mineralisation at the top of the porphyry system in the "crown" position
3. Test the continuity of copper mineralisation on the eastern side of
the Central Porphyry Intrusion, with the objective of defining a new Inferred
Mineral Resource to complement the existing Racecourse Inferred Mineral
Resource which occurs predominantly on the western side of the Central
Porphyry Intrusion
4. Determine the extent and grade of the newly discovered copper
mineralisation at the Ascot Prospect
The Phase Two drilling programme at the Racecourse Prospect commenced on 15
July 2021 and was concluded, following the conclusion of the reporting period,
on 9 July 2022. The overall Phase Two drilling programme comprised 49
diamond drill holes (BRDD-21-007 to BRDD-22-055), completed at the Racecourse
and Ascot Prospect for 33,354.80m of drilling.
Phase Two drilling into the Racecourse prosect continued to intersect very
broad intervals of moderate strength copper-gold mineralisation grading in the
range 0.15 - 0.61% CuEq. On 9 December 2021, the company announced the
discovery of a new porphyry system approximately 1.5km to the south-east of
the Racecourse Inferred Mineral Resource. Drill holes BRDD-21-033 and
BRDD-21-035 intersected porphyry style alteration and trace to moderate
strength copper mineralisation. The new prospect was called "Ascot" and follow
up drilling was completed with the objective of defining the extents of the
Ascot discovery. Drill hole BRDD-21-035 returned substantial intervals of
copper and gold mineralisation with a best intercept of 164m at 0.35% CuEq
from 552m, including 64m at 0.58% CuEq from 552m. The initial assay results
from the Ascot prospect indicated the potential for significant gold
enhancement associated with the copper mineralisation and this result
encouraged follow up drilling at Ascot. Holes BRDD-21-025, BRDD-21-031,
BRDD-21-033, BRDD-21-038, BRDD-22-039 and BRDD-22-044 were drilled as follow
up holes into the Ascot prospect. The best result of the follow up drilling
at Ascot was returned in drill hole BRDD-21-038 which returned 104m @ 0.24%
CuEq from 79m and drill hole BRDD-22-039 which returned 32m @ 0.92g/t Au from
510m. The drill results from the Ascot prospect indicate that this porphyry
system does contain more gold zones than the Racecourse deposit for the
north. The results at Ascot display similar characteristics to the discovery
of the deeper, gold-rich Ridgeway deposit, which is a part of the
Cadia-Ridgeway group of porphyry deposits discovered by Newcrest Mining.
Ridgeway is a near vertical intrusive complex with an indicated resource of
110Mt at 0.57 g/t Au and 0.3% Cu and is currently under development by
Newcrest as an underground mining operation.
Drilling and assay data from the Ascot prospect will be used to complete a
maiden mineral resource estimation for the Ascot prospect, which will be
finalised prior to the end of 2022.
To assist in the determination as to whether the Ascot and Racecourse
prospects, form one continuous mineralised porphyry copper system, an
extension MIMDAS geophysical survey was completed from south of the Ascot
Prospect through to the existing MIMDAS survey (from May 2021) covering the
Racecourse prospect. The results of this MIMDAS survey guided the follow up
drilling completed at the Ascot prospect and drilling between the Racecourse
and Ascot prospects. Drilling between the two prospects continued to
intersect copper-gold mineralisation and it appears the Racecourse and Ascot
prospects are centres of more intense copper-gold mineralisation within one
larger system consisting of multiple porphyry intrusions, as commonly occurs
within the Lachlan Fold Belt.
Drilling at the Racecourse prospect was successful in extending the known
copper-gold mineralisation to the north-west, the south-east and at depth.
During the reporting period seven drill holes (BRDD-22-041, BRDD-22-042,
BRDD-22-043, BRDD-22-047, BRDD-22-048, BRDD-22-053, BRDD-22-054) for 4,968.9m,
were completed at the Racecourse prospect. Assay data was also received for
drill holes completed at the Racecourse prospect during the previous reporting
period. The drilling and assay data gave better definition of the "crown
position", at the top of the Racecourse porphyry intrusion, which appears to
contain the highest grades of copper and gold at Racecourse. Drill Hole
BRDD-21-018 returned an intersection of 170m of 0.22% CuEq from 520m depth,
which includes a higher-grade interval of 12m at 0.41% CuEq from 648m downhole
in the "crown position". The results of drill hole BRDD-21-019 include a
wide 202m interval of copper mineralisation grading at 0.27% CuEq from 276m
depth, which includes a higher-grade intercept of 18m at 0.67% CuEq from 312m
depth, also in the "crown position" atop the Racecourse porphyry intrusion.
Hole BRDD-21-021 repeated the success of hole BRD-21-008, with an overall
intercept of 280m at 0.36% CuEq from 205m, including a higher-grade interval
of 92m at 0.53% CuEq from 205m downhole depth.
The Phase Two drilling at the Racecourse prospect was successful in extending
the known copper-gold mineralisation to the north-west, the south-east and at
significant depth. Furthermore, the Phase Two drilling data has
substantially better defined the higher grade "crown position" at Racecourse
and provided a better understanding of the distribution of gold within the
Racecourse deposit. The company will now utilise all the Phase Two drilling
data to update the Racecourse prospect mineral resource and subsequently will
update the open pit mining study for the Racecourse prospect which was
previously completed in April 2021. The updated mining study is planned for
completion before the end of 2022.
Two drill holes, for 804.4m, were completed at the Footrot Prospect,
approximately 5 kilometres to the south of the Racecourse, to test a combined
soil geochemical and MIMDAS anomaly. The results from these two holes will
be available during the next reporting period.
Mozambique
Mozambique is recognised as a stable mining jurisdiction within a favourable
political and legal regime. The Manica Gold Project is situated in the
Odzi-Mutare-Manica Greenstone belt, with an estimated 2 million ounces of gold
previously mined in the area.
The Fair Bride Project is an open pit and underground project with a combined
SAMREC compliant resource of 1.262 million ounces (including 782k ounces
Measured and Indicated). In 2019, the Company was given the opportunity to
move the Fair Bride Project forward, from development stage to production
through a collaboration agreement with Mutapa Mining and Processing LDA,
thereby mitigating any execution risk to Xtract.
During the reporting period, all construction and installation work was at
Fair Bride was completed, including 6 CIL tanks, thickener, elution circuit,
gold room, reagent storage and laboratory. Rectification works were completed
on the original crushing and milling circuits and the plant has entered into
commissioning.
All clearing and pre stripping were completed and ore has been stockpiled
and hauled to the plant site, along the completed new haulage road. At the end
of June 2022, Fair Bride production started with the introduction of low-grade
ore to commission all parts of the processing circuit.
Zambia
Eureka Project
Copper mineralisation at Eureka occurs within sedimentary rocks along a
north-west oriented structural trend. A shallow historic open pit mine was
developed by a local operator. Previously reported drilling by Xtract
confirmed continuity of the shallow mineralised zone over about 300m of
strike, with pockets of exceptionally high copper grades in a partially
oxidised supergene zone. A second, possible stratabound mineral style may also
represent a target of interest.
No further exploration was undertaken at Eureka during the period pending
consideration of options for possible future development.
Financial
During the Period, administration expenses for the Group amounted to £1.33m
(H1 2021 - £2.19m). Included within administration expenses is an amount of
£Nil (H1 2021- £1.47m) in relation to a share-based payment charge in
relation to the grant of 28.4 million options to directors and employees in
February 2021. Non-operating income for the period amounted to £0.49m (H1
2021- Nil) and comprised primarily of fees invoiced within the group to third
parties.
Enquiries:
Xtract Resources Plc Colin Bird, Executive Chairman +44 (0)20 3416 6471
Beaumont Cornish Michael Cornish +44 (0)20 7628 3369
(Nominated Adviser and Felicity Geidt
Joint Broker) Email: corpfin@b-cornish.co.uk (mailto:corpfin@b-cornish.co.uk)
Novum Securities Limited Colin Rowbury/Jon Belliss +44 (0)207 399 9427
(Joint Broker)
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 as it forms part of UK Domestic Law by virtue of the
European Union (Withdrawal) Act 2018 ("UK MAR"). The person who arranged for
the release of this announcement on behalf of the Company was Joel
Silberstein, Director.
Further details are available from the Company's website which details the
company's project portfolio as well as a copy of this
announcement: www.xtractresources.com (http://www.xtractresources.com)
Xtract Resources PLC
Consolidated Income Statement
For the six month period ended 30 June 2022
Six months ended Year ended
Notes 30 June 2022 30 June 2021 Unaudited 31 December 2021
Unaudited £'000 Audited
£'000 £'000
Continuing operations
Revenue from Gold sales 972 153 692
Other operating income 11 - 189
Other non-operating income 494 - -
Administrative and operating expenses (1,332) (2,191) (3,311)
Direct Operating (715) (228) (569)
Other Operating (82) - (85)
Administration (535) (1,963) (2,657)
Project expenses (214) (94) (432)
Operating loss (69) (2,132) (2,862)
Other gains and losses - - -
Finance (cost)/income 93 (73) (194)
Profit/(loss) before tax 24 (2,205) (3,056)
Taxation (52) - (76)
Profit/(loss) for the period from continuing operations 3 (28) (2,205)
(3,132)
Profit/(loss) for the period 6 (28) (2,205) (3,132)
Attributable to:
Equity holders of the parent (28) (2,205) (3,132)
Net (loss)/profit per share
Basic (pence) 6 (0.00) (0.00) (0.40)
Diluted (pence) 6 (0.00) (0.40) (0.40)
Xtract Resources PLC
Consolidated statement of comprehensive income
For the six month period ended 30 June 2022
Six months ended Year ended
30 June 2022 30 June 2021 Unaudited 31 December 2021
Unaudited £'000 Audited
£'000 £'000
Profit /(Loss) for the period (28) (2,205) (3,132)
Other comprehensive income
Items that will not be reclassified subsequently to profit and loss
Exchange differences on translation of foreign operations
550 112 242
Other comprehensive income/(loss) for the period 550 112 242
Total comprehensive (loss)/income for the period 522 (2,093) (2,890)
Attributable to:
Equity holders of the parent 522 (2,093) (2,890)
522 (2,093) (2,890)
Xtract Resources PLC
Consolidated statement of changes in equity
As at 30 June 2022
Share Capital Share premium account £'000 Warrant reserve Share-based payments reserve £'000 Available-for-sale investment reserve £'000 Foreign currency translation reserve £'000 Accumulated losses Total Equity
£'000 £'000 £'000 £'000
Balance at 31 December 2020 4,928 61,951 76 436 - 66 (55,530) 11,927
Loss for the period - - - - - - (2,205) (2,205)
Foreign currency translation difference - - - - - 112 - 112
Issue of Shares 45 10,104 - - - - - 10,149
Share issue costs - - - - - - - -
Option exercised - 19 - (19) - - - -
Issue of share options - - - 1,473 - - - 1,473
Issue of warrants - (456) 456 - - - - -
Exercise of warrants - 10 (10) - - - - -
Balance at 30 June 2021 4,973 71,628 522 1,890 - 178 (57,735) 21,456
Loss for the period - - - - - - (3,132) (3,132)
Foreign currency translation differences - - - - - 242 - 242
Issue of Shares 45 10,769 - - - - - 10,814
Share issue costs - (664) - - - - - (664)
Issue of share options - - - 1,473 - - - 1,473
Expiry of share options - - - (16) - - 16 -
Exercise of share options - 19 - (19) - - - -
Issue of Warrants - (456) 456 - - - - -
Exercise of warrants - 65 (65) - - - - -
Balance at 31 December 2021 4,973 71,684 467 1,874 - 308 (58,646) 20,660
Loss for the period - - - - - - (28) (28)
Foreign currency translation difference - - - - - 550 - 550
Issue of Shares 1 67 - - - - - 68
Exercise of warrants - 35 (35) - - - - -
Balance at 30 June 2022 4,974 71,786 432 1,874 - 858 (58,674) 21,250
Xtract Resources PLC
Consolidated Statement of Financial Position
As at 30 June 2022
Notes 30 June 2022 Unaudited 30 June 2021 31 December
£'000 Unaudited 2021 Audited
£'000 £'000
Non-current assets
Intangible Assets 7 19,760 13,622 16,752
Property, plant & equipment 8 45 27 25
Other financial assets - - -
19,805 13,649 16,777
Current assets
Trade and other receivables 1,636 185 664
Inventories 14 9 177
Cash and cash equivalents 1,239 8,084 5,389
2,889 8,278 6,230
Total assets 22,694 21,927 23,007
Current liabilities
Trade and other payables 1,350 453 2,226
Current tax payable 94 18 121
Other payables - - -
1,444 471 2,347
Non-current liabilities
Other payables - - -
- - -
Total liabilities 1,444 471 2,347
Net current assets/(liabilities) 1,445 7,807 3,883
Net assets 21,250 21,456 20,660
Equity
Share capital 9 4,974 4,973 4,973
Share premium account 71,786 71,628 71,684
Warrant reserve 432 522 467
Share-based payments reserve 1,874 1,890 1,874
Fair Value reserve - - -
Foreign currency translation reserve 858 178 308
Accumulated losses (58,674) (57,735) (58,646)
Equity attributable to equity holders of the parent 21,250 21,456 20,660
Total equity 21,250 21,456 20,660
Xtract Resources PLC
Consolidated Statement of Cash Flows
For the six month period ended 30 June 2022
Notes 6 months period ended 6 months period ended
30 June 2022 30 June 2021 Year ended
Unaudited Unaudited 31 December
£'000 £'000 2021
Audited
£'000
Net cash used in operating activities 11 (1,732) (1,455) (767)
Investing activities
Acquisition of subsidiary undertaking - - -
Acquisition of intangible fixed assets (2,555) (1,524) (5,009)
Acquisition of tangible fixed assets (26) (5) (13)
Net cash from/(used in) investing activities (2,581) (1,529) (5,022)
Financing activities
Proceeds on issue of shares 68 10,149 10,149
Net cash from financing activities 68 10,149 10,149
Net increase/(decrease) in cash and cash equivalents (4,245) 7,165 4,360
Cash and cash equivalents at beginning of period 5,389 919 919
Effect of foreign exchange rate changes 95 - 110
Cash and cash equivalents at end of period 1,239 8,084 5,389
Xtract Resources PLC
Notes to the interim financial information
For the six month period ended 30 June 2022
1. General information
Xtract Resources PLC ("Xtract") is a company incorporated in England and Wales
under the Companies Act 2006. The Company's registered address is 1(st) Floor,
7/8 Kendrick Mews, London, SW7 3HG. The Company's ordinary shares are traded
on the AIM market of the London Stock Exchange. The Company invests and
engages in the management, financing and development of early-stage resource
assets.
2. Accounting policies
Basis of preparation
Xtract prepares its annual financial statements in accordance with UK-adopted
international accounting standards and in conformity with the Companies Act
2006.
The consolidated interim financial information for the period ended 30 June
2022 presented herein has been neither audited nor reviewed. The information
for the period ended 31 December 2021 does not constitute statutory accounts
as defined in section 434 of the Companies Act 2006 but has been derived from
those accounts. The auditor's report on those accounts was not qualified and
did not contain statements under section 498 (2) or (3) of the Companies Act
2006. As permitted, the Group has chosen not to adopt IAS 34 'Interim
Financial Reporting'.
The interim financial information is presented in pound sterling and all
values are rounded to the nearest thousand pounds (£'000) unless otherwise
stated.
The interim consolidated financial information of the Group for the six months
ended 30 June 2022 were authorised for issue by the Directors on 29 September
2022.
Going concern
As at 30 June 2022 the Group held cash balances of £1,239K. A small operating
loss has been reported for the Group, however, as at the date of the release
of the consolidated financial information, the Group's assets have been and
continue to generate revenues. The Group has continued with its exploration
activities in Australia and recently completed the Phase Two drilling
programme at the Racecourse Prospect.
The Directors have assessed the working capital requirements for the
forthcoming twelve months and have undertaken the following assessment.
Management have reviewed the cash flow projections for the forthcoming twelve
months, based on the current operations in Mozambique, Australia as well as
the corporate overhead. The alluvial operations continue to generate modest
revenues and as with alluvial operations the presence of gold in alluvial
deposits is unpredictable and therefore operational results will vary
month-to-month. The Group expects production at Fair Bride to increase during
the coming months with the Group due to receive 23% share of net profit after
tax.
Based on the assumption that Fair Bride operates within its targeted
parameters and no new business is consummated, the Directors do not anticipate
the need for funds to be raised in the twelve-month period from the date of
authorising the consolidated information.
As is common with junior mining companies, the Company in the past has raised
finance from shareholders for its activities, in discrete tranches to finance
its activities for limited periods only and further funding would be required
from time to time to finance those activities.
The Directors therefore continue to adopt the going concern basis of
accounting in preparing the consolidated financial information and therefore
the consolidated financial information does not include any adjustments
relating to the recoverability and classification of assets and liabilities
that may be necessary if the going concern basis of preparation of the
consolidated financial information is not appropriate.
On this basis the Board believes that it is appropriate to prepare the
consolidated financial information on the going concern basis.
Changes in accounting policy
The accounting policies applied are consistent with those adopted and
disclosed in the Group Consolidated financial statements for the year ended 31
December 2021, except for the changes arising from the adoption of new
accounting pronouncements detailed below.
There are no amendments or interpretations to accounting standards that would
have a material impact on the financial statements.
3. Business segments
Segmental information
The divisions on which the Group reports its primary segment information are
reported to its Executive Chairman, who is the Chief Operating Decision maker
of the Group. The Executive Chairman and the Chief Operating Officer are
responsible for allocating resources to the segments and assessing their
performance.
Principal activities are as follows:
● Operating alluvial gold & hard rock mining segment - Mozambique
● Mine Development - Mozambique
● Exploration
● Investment and other
Segment results Total
6 months ended 30 June 2022 Mine Investment Alluvial Gold Mining Production
Development Exploration (Continuing) And Other (Continuing)
(Continuing) (Continuing)
£'000
£'000 £'000 £'000 £'000
Segment revenue
Sale of gold bars - - - 972 972
Less: Cost of sales - - - - -
Segment Gross profit - - - 972 972
Other operating income - - - 11 11
Non-operating income - - 494 - 494
Administrative and operating expenses
- (145) (825) (362) (1,332)
Project costs - - (214) - (214)
Segment result - (145) (545) 621 (69)
Other gain and losses - - - - -
Finance costs - - 89 4 93
(Loss)/profit before tax - (145) (456) 625 24
Tax - - - (52) (52)
(Loss)/profit for the period - (145) (456) 573 (28)
Mine Development (Continuing) Investment and Other (Continuing) Total
6 months ended 30 June 2021
Alluvial Gold Mining Production (Continuing)
Exploration (Continuing)
£'000
£'000 £'000 £'000 £'000
Segment revenue
Sale of gold bars - - - 153 153
Less: Cost of sales - - - - -
Segment Gross profit - - - 153 153
Administrative and operating expenses
- (39) (1,877) (275) (2,191)
Project Costs - - (94) - (94)
Segment result - (39) (1,971) (122) (2,132)
Other gain and losses - - - - -
Finance costs - - (69) (4) (73)
(Loss)/profit before tax - - (2,040) (126) (2,205)
Tax - - - - -
(Loss)/Profit for the period - (39) (2,040) (126) (2,205)
Mine Development (Continuing) Investment and Other (Continuing) Alluvial Gold Mining Production (Continuing) Total
Exploration (Continuing)
£'000 £'000 £'000 £'000 £'000
Segment revenue
Sale of gold bars - - - 692 692
Less: Cost of sales - - - - -
Segment Gross profit - - - 692 692
Other operating income - - - 189 189
Administrative and operating expenses
(71) - (2,671) (569) (3,311)
Project Costs (13) - (419) - (432)
Segment result (84) - (3,090) 312 (2,862)
Other gains and losses - - - - -
Finance income / (costs) (1) - (106) (87) (194)
(Loss)/Profit before tax (85) - (3,196) 225 (3,056)
Tax - - - (76) (76)
(Loss)/Profit for the period (85) - (3,196) 149 (3,132)
Year ended 31 December 2021
Balance Sheet 30 June 2022 30 June 2021 31 December 2021
£'000 £'000 £'000
Total Assets
Gold production 880 125 925
Exploration 9,728 3,467 6,552
Mining Development 10,437 10,276 10,298
Investment & other 1,649 8,058 5,232
Total segment assets 22,694 21,927 23,007
Liabilities
Gold production (371) (243) (659)
Exploration (459) - (349)
Mining Development - (3) -
Investment & other (614) (225) (1,339)
Total segment liabilities (1,444) (471) (2,347)
The accounting policies of the reportable segments are the same as the Group's
accounting policies which are described in the Group's latest annual financial
statements. Segment results represent the profit earned by each segment
without allocation of the share of profits of associates, central
administration costs including directors' salaries, investment revenue and
finance costs, and income tax expense. This is the measure reported to the
Group's Board for the purposes of resource allocation and assessment of
segment performance.
4. Tax
At 30 June 2022, the Group has no deferred tax assets or liabilities and an
income tax of £52k charge for the period.
5. Revenue
An analysis of the Group's revenue is as follows:
Six months ended Year ended
30 June 2022 30 June 2021 31 December 2021
£'000
£'000 £'000
Revenue from gold sales 972 153 692
972 153 692
6. Loss per share
The calculation of the basic and diluted loss per share is based on the
following data:
Year ended
Six months ended
Losses 30 June 2022 30 June 2021 31 December 2021
£'000
£'000 £'000
Losses for the purposes of basic earnings per share being: (28) (2,205)
Net loss from continuing operation attributable to equity holders of the
parent
(3,132)
(28) (2,205) (3,132)
Number of shares
Weighted average number of ordinary and diluted shares for the purposes of 847,000,046 581,422,831
basic earnings per share
805,203,295
(Loss)/profit per ordinary share basic and diluted (pence) (0.00) (0.40) (0.40)
In accordance with IAS 33, the share options and warrants do not have a
dilutive impact on earnings per share, which are set out in the consolidated
income statement. Details of the shares issued during the period as shown in
Note 9 of the Financial Statements.
7. Intangible assets
Development expenditure & Mineral exploration
Total
£'000 £'000
As at 1 January 2022 16,752 16,752
Additions - at fair value (Manica) - -
Additions - at cost (Manica) 34 34
Foreign exchange 139 139
Additions - at fair value (Bushranger) - -
Additions - at cost (Bushranger) 2,337 2,337
Foreign exchange 314 314
Additions - at cost (Eureka) 184 184
As at 30 June 2022 19,760 19,760
Amortisation
As at 1 January 2022 - -
Charge for the year - -
As at 30 June 2022 - -
Net Book value at 1 January 2022 16,752 16,752
Net book value at 30 June 2022 19,760 19,760
Mozambique
In March 2016, The Company acquired the Manica licence 3990C ("Manica
Project") from Auroch Minerals NL. The Manica Project is situated in central
Mozambique in the Beira Corridor. At the time of acquisition, the project had
a JORC compliant resource of 900koz (9.5Mt@ 3.01g/t) in situ, which has
increased to 1.257moz (17.3Mt @ 2.2g/t) following an independent technical
report completed by Minxcon (Pty) Ltd in May 2016.
Australia
In November 2020, the Company acquired the Bushranger copper-gold project
("Bushranger Project") which comprises of four exploration licences totaling
501km2, located in eastern central New South Wales, Australia. The Bushranger
Project hosts the Racecourse deposit, a JORC (2012) compliant inferred
resource estimated at 71Mt @ 0.44% Cu and 0.064g/t Au using a 0.3% Cu cut-off.
Zambia
The Eureka copper-gold property with the small-scale mining licence number
22134-HQ-SML comprising approximately 345 hectares is accessed by a 100km dirt
road from Kabwe, west of the Zambian Copperbelt district. The licence
application was submitted in August 2017 and has been validated and the
licence when issued will be for period of 10 years with no minimum spend.
As the 31 December 2021, the Company impaired £362K of costs that had been
incurred to date on the Kalengwa project.
Cost or fair value on acquisition of subsidiary Mining plant & equipment Land & Buildings Furniture & Fittings Total
£'000 £'000 £'000 £'000
At 1 January 2022 36 - - 36
Additions - at cost 26 - - 26
Foreign exchange 2 - - 2
At 30 June 2022 64 - - 64
Depreciation
At 1 January 2022 (11) - - (11)
Charge for the period (8) - - (8)
At 30 June 2022 (19) - - (19)
Net book value
At 30 June 2022 45 - - 45
At 1 January 2022 25 - - 25
8. Property, plant and equipment
9. Share capital
As at As at As at
30 June 2022 Number 30 June 2021 31 December 2021
Number Number
Deferred shares of 0.09p each
As at 1 January 5,338,221,169 5,338,221,169 5,338,221,169
Issued during the period - - -
5,338,221,169 5,338,221,169 5,338,221,169
Ordinary shares of 0.02p each
As at 1 January 845,143,693 620,465,144 620,465,144
Issued during the period 5,249,998 224,678,549 224,678,549
Outstanding as at 30 June 850,393,691 845,143,693 845,143,693
The following Ordinary Shares of 0.02p were issued during the period:
- Issued - 28 April 2022-4,416,665 at 1.20p per share
- Issued - 28 April 2022- 833,333 at 1.85p per share
The following warrants were exercised during the year:
- Issued 23 August 2019- 3,333,332 exercisable at 1.20p per share
- Issued 30 September 2020- 1,083,834 exercisable at 1.20p per
share
- Issued 30 September 2020- 833,332 exercisable at 1.85p per share
10. Cash flows from operating activities
Six month
period ended
Six month 30 June 2021 Year ended
period ended £'000 31 December 2021
30 June 2022 £'000 £'000
Profit/(loss) for the period 24 (2,205) (3,056)
Adjustments for:
Continuing Operations
Depreciation of property, plant and equipment 8 - 11
Amortisation of intangible assets - - -
Net Finance costs (71) 72 214
Impairment of intangible assets - - 362
Interest income (23) - (20)
Other (gains) /losses - - -
Share-based payments expense - 1,473 1,473
Operating cash flows before movements in working capital (62) (660)
(1,016)
Decrease/(Increase) in inventories 162 (1) (169)
(Increase)/decrease in receivables (972) (34) (516)
(Decrease)/increase in payables (876) (602) 1,176
Cash used in operations (1,748) (1,297) (525)
Net finance costs 94 (72) (194)
Tax (paid) (78) (86) (48)
Foreign currency exchange differences - - -
Net cash used in operating activities (1,732) (1,455) (767)
11. Related party transactions
There have been no changes to related party arrangements or transactions as
reported in the 2021 Annual Report.
Transactions between Group companies, which are related parties, have been
eliminated on consolidation and are therefore not disclosed. The only other
transactions which fall to be treated as related party transactions are those
relating to the remuneration of key management personnel, which are not
disclosed in the Half Yearly Report, and which will be disclosed in the
Group's next Annual Report.
ENDS
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. END IR GCGDCDSXDGDGRecent news on Xtract Resources
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