REG - Zinnwald Lithium PLC - Half-year Report
26/09/2025 07:00
For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250926:nRSZ9043Aa&default-theme=true
RNS Number : 9043A Zinnwald Lithium PLC 26 September 2025
Zinnwald Lithium plc / EPIC: ZNWD.L / Market: AIM / Sector: Mining
26 September 2025
Zinnwald Lithium plc ('Zinnwald Lithium' or the 'Company')
Interim Results
Zinnwald Lithium plc, the European focused lithium company developing the
integrated Zinnwald Lithium Project (the 'Project') in Germany, is pleased
announce its Interim Results for the period ended 30 June 2025.
HIGHLIGHTS
Six months to 30 June 2025
· Pre-Feasibility Study published on 31 March 2025 confirming the
technical and financial viability of an integrated mining and processing
operation
· €3.3 billion pre-tax Net Present Value ('NPV') at 8% discount
rate, post-tax €2.2 billion.
· 23.6% pre-tax Internal Rate of Return ('IRR'), post-tax 19.8%.
· Life of Mine ('LOM') free cash flow post-tax of €12.1 billion.
· C1 cash operating cost of €8,403 per tonne lithium hydroxide
monohydrate ('LHM') operating cost over the 41-year LOM.
· 5 year payback period from start of production for Phase 1 of the
planned phased project.
· Maiden Ore Reserve of 128 Mt grading 4,428ppm (0.44%) Li₂O
supporting a phased development strategy:
· Phase 1: Forecast 18,000 tonnes per annum ('tpa') of LHM
· Phase 2: Forecast peak production of 35,100 tpa LHM, effectively
doubling capacity within Phase 1 project footprint.
· Advanced environmental licencing and permitting, with updates to
the spatial planning process submitted to Landesdirektion Sachsen.
· LOI signed with solar development company Solar-Bau to explore
the option for long term clean power offtake.
· Strong statement of support for the Project from the Saxony
Government following EU's publication of its first round of strategic projects
under the CRMA.
· Awarded new exploration license at Liebenau to complete almost
13,000 Ha coverage around the Project area of development.
· Completed £3.4m fund raise supported by three largest existing
shareholders.
Post period end to 25 September 2025
· Ongoing development of geometallurgical model.
· Ongoing testwork programme to optimise lithium recovery in
beneficiation stage.
· Initial testwork commenced on option to use a tunnel kiln in
calcination process.
· Public consultation underway on Spatial Planning Application.
· MoU signed with local "green" cement company to explore potential
uses for various waste streams.
· Continue to strengthen German team with appointment of new
permitting manager.
Investor hub presentation
Investors are invited to register and submit questions via the "Interim
Results Webinar - October 2025" page on the Zinnwald Hub. Anton du Plessis,
CEO, will then record a Q&A addressing the results. Navigate to the page
here:
https://investors.zinnwaldlithium.com/webinars/lPdd7P-interim-results-webinar-october-2025
(https://investors.zinnwaldlithium.com/webinars/lPdd7P-interim-results-webinar-october-2025)
.
Make sure you're registered to the webinar to receive an email notification
when the Q&A is published.
For further information visit www.zinnwaldlithium.com or contact:
Anton du Plessis Zinnwald Lithium plc info@zinnwaldlithium.com
Cherif Rifaat
David Hart Allenby Capital +44 (0) 20 3328 5656
Dan Dearden-Williams (Nominated Adviser)
Michael Seabrook Oberon Capital Ltd +44 (0) 20 3179 5300
Adam Pollock (Broker)
Isabel de Salis St Brides Partners zinnwald@stbridespartners.co.uk (mailto:zinnwald@stbridespartners.co.uk)
Paul Dulieu (Financial PR)
Notes
AIM quoted Zinnwald Lithium plc (EPIC: ZNWD.L) is focused on becoming an
important supplier of lithium hydroxide to Europe's fast-growing battery
sector. The Company owns 100% of the Zinnwald Lithium Project in Germany,
which has an approved mining licence, is located in the heart
of Europe's chemical and automotive industries and has the potential to be
one of Europe's more advanced battery grade lithium projects.
CHAIRMAN'S STATEMENT
I am pleased to report on Zinnwald Lithium's progress during the first half of
2025, a period in which we have continued to advance our integrated lithium
hydroxide ('LiOH') project in Saxony, Germany. Despite a persistently
challenging macroeconomic environment, our conviction in the long-term
strategic value of our asset remains strong, underpinned by the critical role
of lithium in the global energy transition and consistent regional and
political alignment.
The publication of our Pre-Feasibility Study ('PFS') in March marked a major
milestone. It confirmed the compelling economics of the Zinnwald Project, with
a post-tax Net Present Value of €2.2 billion, an Internal Rate of Return
approaching 20%, and projected cumulative cash flows of €12.1 billion over a
mine life exceeding 40 years.
Notably, the PFS also confirmed the Project's potential to support the
electrification of over one million electric vehicles ('EVs') per year,
underscoring its relevance as one of Europe's most strategically significant
lithium assets. This aligns closely with regional and EU goals to build
secure, domestic critical raw material supply chains. The Project's
significance was further recognised by the Saxon State Government, which
designated it as being of "outstanding importance," thereby strengthening our
position in navigating the permitting and development process.
Since then, we have remained focused on optimising and de-risking the Project
further and were, therefore, pleased to complete a £3.4 million fundraise in
June. The raise was well supported by both new and existing investors,
including AMG Lithium, whose participation represents a strong endorsement of
our strategy to bring the Project online as the lithium supply-demand
imbalance is expected to intensify towards the end of the decade.
With funding in place, work continues to advance across several key fronts. On
the permitting side, we are progressing with the Environmental and Social
Impact Assessment and the associated regulatory processes. Concurrently, we
are progressing various technical workstreams, advancing negotiations to
secure access to land required for infrastructure development, and expanding
the team to ensure we have the necessary skills and expertise to take the
Project through its next critical phases.
Given that sustainability is central to our development strategy, we are
proactively engaging with stakeholders to ensure transparency and build a
strong social licence to operate as we advance through permitting and
development. As part of this commitment, we recognise our responsibility to
support the local economy while safeguarding the region's quality of life.
Accordingly, our development plans prioritise minimal surface disruption
through an underground mine design and the construction of a proposed 9km
underground tunnel, eliminating the need for surface transport and
significantly reducing traffic, noise, and environmental impact.
Our low-energy, low-waste processing flowsheet further reinforces the
Project's commitment to sustainability, as do our plans to integrate renewable
power solutions over the life of the operation. We are actively exploring the
latter option in partnership with Solar-Bau, a specialist solar development
company. Importantly, although the second planned phase targets production
exceeding 35,000 tonnes of LiOH annually, all operations will remain within
the original Phase 1 footprint.
The Company continues to maintain its extremely disciplined approach to
expenditure and cash management and as such is well funded through its ongoing
work into 2026, with cash of €4.1m as at the date of this report.
In closing, I would like to thank our shareholders, employees, partners, and
the local communities for their continued support and engagement. With a
robust technical foundation, strong strategic alignment, and a clear path
forward, I am confident that Zinnwald Lithium is positioned to play a leading
role in Europe's energy transition, while also generating long-term economic
value for the region through job creation, regional investment, and
responsible development. With clear regional and EU policy support and growing
momentum across the Project, we look ahead with confidence as we continue to
unlock its full potential.
Jeremy Martin
Non-Executive Chairman
STRATEGIC REPORT
Operational Review
The first half of 2025 saw Zinnwald Lithium Plc (the "Company") and its wholly
owned subsidiary, Zinnwald Lithium GmbH ("ZL GmbH" and together the "Group")
continue to accelerate its development strategy for its integrated Zinnwald
Lithium Project (the "Project"). During the six months to 30 June, the
Company achieved the key milestone of publication of the Pre-Feasibility Study
that demonstrated both the scale of the Project, its long mine life and the
robust economics.
PRE-FEASIBILITY STUDY
In March 2025, the Group published a Pre-Feasibility Study ("PFS") for the
Project on a phased project basis with a mine life in excess of 40 years.
The Project includes an underground mine with associated processing of mined
ore to produce battery-grade LHM. Processing including beneficiation,
pyrometallurgy and hydrometallurgy will be carried out at an industrial
facility to be established near the village of Liebenau. Ore haulage from the
mine to the processing facility is via electric conveyor in a 9.1 km tunnel
that will be constructed utilising a tunnel boring machine ("TBM") to reduce
the Project's impact on local communities.
The Project development concept has been conceived as a multi-stage approach
where Phase 1 will establish the necessary infrastructure, develop the mine
and deliver approximately 18,000 tonnes of LHM per annum. Phase 2 will double
production capacity and sees production peak at approximately 35,100 tonnes
LHM per annum utilising the initial mining and tunnel infrastructure and
benefiting from economies of scale.
The planned underground mine has been designed as a conventional longhole open
stoping operation with paste backfill, utilising regional pillars to mitigate
surface subsidence risks. Primary crushing will occur underground before ore
is transported through the 9.1 km tunnel via conveyor to the industrial
facility.
At the industrial facility ore is initially processed using conventional high
intensity wet magnetic separation to recover a zinnwaldite concentrate. Benign
quartz sand waste from this stage will either be returned to the mine for use
as backfill material underground, stored on the adjacent tailings storage
facility or sold to third parties for use in the construction industry.
Subsequent processing stages include calcination of the zinnwaldite
concentrate in a rotary kiln, pressure leaching and bicarbonation utilising a
proprietary process developed by Metso and subsequent evaporation and
crystallisation. The primary end product will be battery grade lithium
hydroxide which will be shipped via the nearby autobahn to end-users in the
German or EU battery chain. A number of by-products including analcime,
calcium silicate, calcium fluoride, calcium carbonate and potassium chloride
will also be produced. The process plant is designed to achieve zero liquid
discharge.
In Phase 1, the Project will deliver approximately 1.6 million tonnes per
annum ('tpa') run of mine (ROM), providing approximately 300,000 tpa
zinnwaldite concentrate which will be further processed into approximately
18,000 tpa LHM. Given the scale of the resource and the capacity of the
planned processing site, the Project considers expansion through development
of Phase 2, doubling capacity and allowing output to peak at approximately
35,100 t/a LHM after allowing for the forecast reduction in feed grade over
the LOM. The Project implementation plan envisages the permitting and
build-out of Phase 1 to demonstrate the viability of the Project before
proceeding with Phase 2, assumed to begin operation in Year 7.
Economic Analysis in the PFS
The economic analysis included in the PFS (summarised below) demonstrates the
financial viability of the Project with a pre-tax Net Present Value ("NPV") of
€3.3 billion and a pre-tax Internal Rate of Return ("IRR") of 23.6%. The
post-tax NPV is €2.2 billion and post-tax IRR is 19.8% The Project has a
mine life of over 40 years, and the payback period is less than five years
post commencement of production.
PFS Key Financial Model Metrics Unit Value
Pre-tax NPV (at 8 % discount) EUR €m 3,328
Pre-tax IRR % 23.6%
Post-tax NPV (at 8 % discount) EUR €m 2,187
Post-tax IRR % 19.8%
Simple Payback (years post start of production) Years 4.6
Initial Construction Capital Cost EUR €m 1,048
Average LOM Unit Operating Costs (pre by-product credits) EUR/t LHM 9,505
Average LOM Unit Operating Costs (post by-product credits) EUR/t LHM 8,403
Average LOM Revenue EUR €m p.a. 741
Average Annual EBITDA with by-products EUR €m p.a 484
Annual Average LHM Production KTonnes per annum 27
LiOH Price assumed in model EUR/t LHM 26,288
MRE and Reserve
Zinnwald conducted an 84 hole, 27,000m drill programme in 2022-2023 that
culminated in an updated Mineral Resource Estimate (MRE) in 2024 (see table
below) prepared by Snowden Optiro. The Mineral Resource totals 193.5 Mt at
2,220 ppm Li (429 kt contained lithium metal) in the Measured and Indicated
category at a cut-off grade of 1,100 ppm Li. The updated MRE established
the Project as the second largest hard rock lithium project in the EU both in
terms of resource size and contained lithium content.
As part of the PFS, Snowden Optiro prepared a Mineral Reserve (see table
below) estimated using accepted industry practices for underground mines. The
identified economic mineralisation was subjected to detailed mine design,
scheduling and the development of a cashflow model incorporating technical and
economic projections for the mine for the duration of the Reserves case, which
is the mining base case. This Maiden Ore Reserve totals 128 Mt grading
4,428ppm (0.44%) Li₂O supporting a phased development strategy of 18,000 tpa
of LHM in Phase 1 and increasing to a forecast peak production of 35,100 tpa
LHM, effectively doubling the capacity within Phase 1 project footprint.
Classification Tonnes Mean Grade Contained Metal
(MT) Li (ppm) Li(2)O (ppm) Li (Kt) LCE (Kt)
Resource (Jun 2024 MRE)
Measured 36.3 2,500 5,380 91 483
Indicated 157.2 2,150 4,630 338 1,802
MEASURED + INDICATED TOTAL 193.5 2,220 4,780 429 2,285
INFERRED TOTAL 33.3 2,140 4,610 71 379
Reserve (Mar 2025 PFS)
Proven 27.2 2,188 4,711 60 317
Probable 100.9 2,021 4,351 204 1,085
Total 128.1 2,056 4,428 263 1,402
EXPLORATION LICENSES
Whilst the Company's primary focus is on the development of its core Zinnwald
Licence, it continues to advance targets on its surrounding 100% owned
prospective exploration licence areas. Work on these licences has mainly
involved relogging and sampling historical data and core. Furthermore, the
Company applied for and received an extension of its Altenberg exploration
licence, which is now valid until 20 February 2027. The Company is in the
process of submitting the renewal application for the Falkenhain License that
expires at the end of 2025.
In addition, the team is evaluating an extensive historic geological database
derived from historical drilling campaigns such as those undertaken by the
former Wismut SAG, which has recently been made available to the public.
Notably, there is data for over 900 drill holes of various depths within the
areas of interest to the Company that has the potential to provide valuable
geological and geotechnical information relevant to its licenses and site
location options.
New Liebenau Exploration license
On 7 April 2025, the Company announced that it had been granted an additional
exploration licence (the 'Liebenau Licence') covering approximately 2,997
hectares ('ha') in the Erzgebirge region of Saxony, Germany. The Liebenau
Licence completes the licence coverage area for the Project's planned
operations identified in the PFS and includes the site identified for the
processing plant and tailings storage facility. It facilitates the ability
to access sites required for geo-technical and hydrogeological drilling to
support the Project's next phase of work to complete a Definitive Feasibility
Study ('DFS').
The Liebenau Licence adds a substantial land area to the mineral exploration
titles of the Company in the region that now stands at combined 12,933 ha (see
Table and Map below). Exploration activities on these licenses have the
potential to further expand the Company's lithium resources which could
ultimately contribute to production. The location of the Liebenau Licence is
based on the boundaries of previously granted exploration licences and takes
into account the findings of extensive exploration work by the state
geological institutions of the former GDR and the data obtained therein. These
indicate that granite- and greisen-associated Li-Sn-W mineralisation extend
into the proposed exploration area.
License No Interest Category Licence expiry date License area (m²)
Zinnwald 2960 100% Mining 31 December 2047 2,564,800
Falkenhain 1686 100% Exploration 31 December 2025 2,957,000
Altenberg 1698 100% Exploration 20 February 2027 42,252,700
Sadisdorf 1706 100% Exploration 30 June 2026 2,249,000
Bärenstein 1713 100% Exploration 30 June 2028 49,339,000
Liebenau 1733 100% Exploration 01 April 2030 29,970,000
Total 129,332,500
Map of Licence Areas
FUNDRAISE
On 18 June 2025, Zinnwald completed a £3.4m fundraise at a placing price of
5p per share. The directors continue to recognise the importance of giving
retail shareholders and investors an opportunity to participate in the
Company's ongoing funding and utilised the RetailBook Platform for new and
existing shareholders located in the United Kingdom, which raised £0.25m in
total.
AMG Lithium B.V. ("AMG"), a wholly owned subsidiary of Euronext
Amsterdam-listed AMG Critical Materials N.V, supported the fund raise and
increased their shareholding in the Company from 25.1% to 29.6%. Two other
significant and longstanding shareholders in the Company, Henry Maxey and Mark
Tindall, also subscribed to increase their respective shareholdings to 14.7%
and 5.2%.
The Company's immediate use of the net proceeds of the fundraise include the
following:
· Permitting: continue to advance the ongoing permitting process
and work required for the Environmental and Social Impact Assessment;
· Project derisking: advance areas identified in the PFS regarding
opportunities to de-risk and optimise the Project, including process testwork
and further sources of financing including grant funding;
· Property: continue negotiations with the City of Altenberg and
landowners identified at Liebenau to secure options over the land required for
the Project;
· Project team: continue to build out the Project team in Germany;
and
· Working capital and general corporate purposes.
PERMITTING AND COMMUNITY MATTERS
Permitting / ESIA
The Project will be permitted under German Mining Law and intends to follow an
integrated permitting procedure under one unitary body, the Saxony Mining
Authority ("SOBA"). A Spatial Planning Procedure is underway prior to the
overarching permit, the General Operating Plan ("GOP"). As part of the GOP
process, the Project will complete an Environmental Impact Assessment ("EIA").
The GOP requires a number of supporting documents including the EIA and other
related documentation (e.g. Natura 2000 Impact Assessments, Landscape
Management Plan and various environmental technical reports).
The Project has also commenced its work to produce an Environmental and Social
Impact Assessment that will meet both the requirements for permitting under
German Federal law as well as being completed to a level suitable for the
purposes of seeking finance from International Financing Institutions, who are
signatories to the Equator Principles 4 (and related standards). As part of
this work, the Project is finalising for publication in English and German its
ESIA Scoping Study, Stakeholder Engagement Plan, Land Acquisition and
Compensation Framework and Grievance Mechanism. The Project will then hold
public consultation meetings with local stakeholders to finalise these items
ahead of the full ESIA.
Spatial Planning
In 2025, the Project has finalised its Spatial Planning application documents,
which is reviewed by the Landesdirektion Sachsen ("LDS"). In February, the
updated draft Spatial Planning application was submitted for initial review by
LDS. The Company received its initial feedback in April and subsequently
provided LDS with further documentation, including certain documents
translated into Czech. In June, the LDS published its statement declaring
formal commencement of the Spatial Planning Procedure. This includes a
public statement and presentation on LDS website; request for comments from
120 legal and NGO bodies potentially impacted; and the public display of
documents at 4 Town Halls and in the regional District Office for an 8-week
period from July to August. The anticipated timetable is that LDS will then
evaluate and respond to these public replies. The anticipated timetable is
that towards the end of Q4 2025, the LDS will submit its formal Spatial
Planning report to SOBA. This report is an important milestone as it is one of
the first items that feeds into the main GOP Permit process.
Local Community Engagement
The Company is well aware that a key part of the Project's development will be
to secure the social licence to operate via extensive public participation.
The Company recognises the importance of the general public and NGOs in the
permitting processes and has committed to proactively engage with all the
stakeholders in its projects. In early March, the Company launched its
German language local community website at www.lithium-im-erzgebirge.de
(http://www.lithium-im-erzgebirge.de) . This website has extensive detail on
the Project and offers a forum for direct engagement, and the Company is
encouraged by the traffic on this site. At the end of March, the Project's
local MD, Marko Uhlig, hosted a well-publicised and attended open day in
Altenberg to officially launch the PFS and explain the impact on the local
community. It also distributes a quarterly post-box newsletter in the region
reaching up to 10,000 households.
The Project has been designed so as to minimise the impact on local
communities, the environment and protected areas in the vicinity (Natura 2000
and UNESCO World Heritage). This has been done despite a generally higher
cost. This includes underground mining and continuous backfilling with mined
waste, rather than open-pit mining.; ore haulage via a tunnel to be
constructed, rather than via truck transport on local roads or overland
conveyor; and the selection of an area of ground adjacent to the A17 Highway
as the main industrial site. This site is not in a protected area (such as
Natura 2000) and has only limited visibility from the nearest villages,
Liebenau and Breitenau. The site is also well located with access to the A17
Highway and is near a planned solar park with the potential to supply a
significant portion of the Project's electrical power needs from a renewable
source.
The Project falls entirely within the municipality of Altenberg that covers an
area of 145.8 km2 and had a total population of 7,851 as of 2023. The largest
towns and villages most directly impacted will be Zinnwald (2023 population of
377), Altenberg (2023 population 1,968) and Liebenau (2023 population 389).
The proposed process plant site is located to the north of the village of
Liebenau, where the terrain rises gradually to the south and creates a natural
barrier between the village and the plant site. The total above ground area
required for the Project is 121 ha, comprising 6 ha at the Zinnwald border
station and 115 ha at Liebenau.
Local Government engagement
In April, the Saxon Minister for Economics, Dr Dirk Panter, visited the
Company's facilities in Altenberg to be briefed on the Project following
publication of the PFS. Since then, the Saxon Ministry of Economics has
created an inter-ministerial working group to coordinate support and
permitting for the Project. Its members include all relevant ministries, the
Prime Minister's office, statutory authorities (such as the permitting
authority, SOBA) and state security representatives. This working group met
for the first time in June 2025 and now meets regularly to assist the Project
in its development.
The Saxon Prime Minister and the Minister of Economics have also sent a joint
letter to the Federal Minister of Economics Berlin expressing the importance
of the Project to Saxony and requesting Federal support.
Solar power opportunity
In 2025, the Company has signed a letter of intent ('LOI') with P+S
Projektentwicklung Solar-Bau GmbH ('Solar-Bau') to explore the purchase of
solar-generated power. Solar-Bau, a solar development company, plans to
establish several solar power generation facilities near the Project. This
partnership has the potential to reduce the Project's environmental impact by
using solar energy close to its source, thereby reducing energy transfer
losses and infrastructure costs, while providing Zinnwald Lithium with a clean
energy source to lower the CO2 content of its final product.
EUROPEAN UNION AND GERMANY DEVELOPMENTS
Critical Raw Materials Act ("CRMA")
On 25 March 2025, the Company announced that its application under the
Critical Raw Materials Act ('CRMA') had been unsuccessful in the first annual
list of "strategic" projects. In its review of the Project, the CRMA committee
noted that the Project has the potential to make a significant contribution to
future supply of lithium for the EU. Despite this outcome, the Company
remains optimistic about the Project's long-term prospects as one of the few
near-term, sustainable lithium production projects in Europe with the size of
resource that can be a significant contributor to European supply. This was
demonstrated in the PFS that was published shortly after the EU's announcement
and had not been available for review by the EU at the time of the Project's
application in August 2024.
While the Company is disappointed to not have been selected as a "strategic"
project, it notes that this designation does not itself bestow any specific
advantage in terms of funding or specific quantifiable assistance with, or
acceleration of, established permitting and project approval timelines. The
Company will reassess whether to apply for "strategic" status as and when the
next stage of applications is called for, which is believed to be later in
2025.
Saxony Government
In immediate response to the CRMA's decision, on 2 April 2025, the Saxon State
Government reaffirmed its strong support for the Project, emphasising its
strategic significance in securing a sustainable and independent lithium
supply for the Free State of Saxony, the Federal Republic of Germany, and
Europe as a whole. Saxony's Economics Minister, Dirk Panter, reiterated the
government's commitment to the Project, stating:
"Especially in light of increasing international tensions, reducing raw
material dependence is crucial for Saxony, Germany, and the EU. The Zinnwald
Lithium project plays an outstanding role in this effort. Ensuring an
independent and sustainable supply of critical raw materials like lithium is
vital for Saxony's competitiveness as an industrial hub and for the
transformation of the mobility and energy sectors."
Minister Panter also emphasised the importance of international investment in
large-scale projects such as Zinnwald Lithium and welcomed the Company's
successful demonstration of the Project's economic feasibility, which
highlights the attractiveness and economic significance of raw material
extraction in Saxony and Germany.
The Minister further confirmed that the Saxon Government will actively support
the Project and has designated it a high priority. This commitment is formally
acknowledged in the coalition agreement between the CDU and SPD in the Free
State of Saxony. Additionally, the Saxon State Government remains committed to
advocating at the federal level for strong support of lithium mining in
Saxony, reinforcing the Project's status as a key initiative.
Temporary Crisis and Transition Framework ('TCTF')
In 2024 the Company applied for public grant funding under the Federal
Government's TCTF programme to support the "Resilience and Sustainability of
the Battery Cell Manufacturing Ecosystem" in Germany. The Project underwent
detailed technical review and was invited to formally apply for the envisaged
funding. While the invitation does not guarantee funding, it acknowledges the
Project's strong potential. This review process remains ongoing, and updates
will be provided as more information becomes available.
If the application is ultimately successful, any funding would be provided 70%
by the Federal State Government and 30% by the State of Saxony. On 4 June
2024, the Saxony Government announced its commitment to provide its portion of
any funding, subject in part to receipt of formal approval by the Parliament
of the State of Saxony, which was duly received on 21 June 2024.
Post Balance Sheet events to 25 September 2025
The Project has continued to advance the Project on a number of fronts
including work on various of the optimisation recommendations included in the
PFS to be completed ahead of starting the work on the DFS.
Geology
The Project is further developing its geometallurgical model and has completed
the further work on mineral characterization, which will serve as the basis
for selection of the variability testwork programme. Furthermore, the Project
has also started the automated mineralogy works on zinnwaldite/Li-mica in
tailings and feed samples, which will provide further insights into
potentially non-recoverable lithium bearing minerals in the run-of-mine
material. Additionally, the Project has completed the installation works for
its hydrogeological monitoring, including measuring points in and around the
proposed Zinnwald mine site. The Project has also completed a LIDAR drone
survey at the Liebenau site, which will be used to integrate the plant and TSF
into a 3D model for visualization purposes.
Processing Testwork
In the area of mineral processing, the Project is progressing further testwork
to optimise and de-risk elements of the flow sheet that will underpin the
definitive operating criteria in the DFS. This includes in the mineral
processing area to assess the potential to further improve the lithium
recovery level in the concentrator, as well as testing the potential to use a
tunnel kiln rather than a rotary kiln in the calcination stage. This has the
potential to reduce both capital and operating costs in this area as well as
simplifying materials handling.
Permitting and ESIA
As noted above, the Spatial Planning application process is in the public
consultation phase with the results from LDS targeted for Q4 2025. The
Project also intends to commence its public consultation process around its
ESIA in Q4 2025.
LOI with local Cement Company
The Project has signed a non-binding, non-exclusive Memorandum of
Understanding ("MoU") with ECOMENt GmbH to develop options for
commercialisation of the beneficiation tailings and further development of the
backfilling concept. The MoU also includes work around the use of the
Project's residues, such as analcime, as a clinker substitute in the cement
industry, for which the initial test results have been encouraging.
Brokers
The Company has elected to go forward with a single broker for the time being
and Oberon Capital Ltd will perform that role with effect from 30 September.
The Board would like to thank Tamesis Partners LLP for their support over
the last two years.
Lithium Market in 2025
The first half of 2025 saw a continuation of the weakness in the lithium price
from 2024 with prices for battery grade lithium products below $10,000 per
tonne, due primarily to current oversupply into the market. However, the
long-term dynamics of the lithium industry remain robust with EV demand still
growing strongly combined with rapidly accelerating growth in battery storage
area. As the head of battery raw materials at Fastmarkets recently said,
"The fundamentals are really still very strong, and these are anchored in some
very powerful mega trends that we see developing within the global economy;
the urgent drive for climate change mitigation, the once in a generational
shift in the global energy system, and also the rise of energy intensive
technologies such as artificial intelligence." The impact of resource
nationalism and concerns over security of supply and the environmental
footprint of the current lithium production chain are also expected to impact
the market in the medium term. There is growing consensus amongst analysts
that an incentive price of at least $20,000 per tonne is required for
greenfield projects to reach FID and meet the expected demand / supply
imbalance forecast for the end of this decade. In recent weeks, there has
been signs of a change in sentiment in the industry and a slight upturn in the
lithium price, as certain high-cost Chinese lepidolite production has been
shuttered.
Outlook
The PFS has demonstrated the size, long mine life and robust economics of the
Project and its relevance to the long-term development of the German and EU
battery chain. The Company will continue to advance the technical development
work required ahead of commencing the DFS. The Company will also continue
its work on the permitting and ESIA process and ensuring its social license to
operate with the local community, supported by its strong relationship with
the local government in Saxony. Alongside this, the Company will continue to
advance its long term financing strategy including discussions with potential
financing partners.
Financial Review
Notwithstanding that the Company is a UK Plc with its ordinary shares admitted
to trading on AIM, the Company presents its accounts in its functional
currency of Euros, since the majority of its expenditure, including that of
its subsidiary Zinnwald Lithium, is denominated in this currency.
The Group is still at an exploration and development stage and not yet
producing minerals, which would generate commercial income. The Group is not
expected to report overall profits until it is able to profitably
commercialise its Zinnwald Lithium project in Germany.
During the period, the Group made a loss before taxation of €1.6m compared
with a loss of €1.2m for the six month period ended 30 June 2024. In the
six months to 30 June 2025, administrative expenses were €1.3m, broadly in
line with the previous period. It includes the costs related to being a
public listed company, including the costs of non-executive directors,
brokers, nominated adviser and other advisers. There was also a share-based
payment expense of €0.4m, up slightly from €0.3m in 2024, arising from the
issuance of new share incentives in each period. Interest income on the
Group's cash balances declined from €0.2m in the prior period reflecting the
reduced cash balance as the Project completed its PFS.
The Total Net Assets of the Group increased to €40.4m as at 30 June 2025
compared with €37.7m at 31 December 2024. The Group's Intangible asset
balance increased to €36.8m at 30 June 2025 from €34.2m at 31 December
2024 and cash balances decreased to €4.7m from €5.2m at the end of 2024,
which reflects ongoing spend on the Zinnwald Lithium Project offset partly by
the €3.9m fund raise completed in June 2025. As at the date of this report,
the Group's cash balance is €4.1m.
On behalf of the board
Cherif Rifaat,
CFO and Director
The technical information relating to geology, the Mineral Resource and
Reserve Statements and disclosure on other Project matters, particularly the
Flowsheet, has been extracted and summarised from the Company's
Pre-Feasibility Study Ni 43-101 report. The executive summary of this report
was published on 31 March 2025. The independent Qualified Persons are Laurie
Hassall (MSci FIMMM QMR FGS) and Rodrigo Pasqua (FAusIMM,BEng (Mining)) of
Snowden Optiro and are both Qualified Persons as defined by National
Instrument 43-101 - Standards of Disclosure for Mineral Projects.
INTERIM CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FR THE SIX MONTHS ENDED 30 JUNE 2025
30 June 2025 30 June 2024
Unaudited Unaudited
Notes € €
Continuing operations
Administrative expenses (1,285,304) (1,231,500)
Other operating income 5 31,983 68,415
Share based payments charge 13 (380,545) (304,818)
Operating Loss 4 (1,633,866) (1,467,903)
Finance income 6 23,682 241,332
Loss before taxation (1,610,184) (1,226,571)
Tax on loss (6,501) -
Loss for the financial period (1,616,685) (1,226,571)
Other Comprehensive loss (33) -
Total comprehensive loss for the period (1,616,718) (1,226,571)
Earnings per share from continuing operations attributable to the owners of 7
the parent company
Basic (cents per share) (0.33) (0.25)
Total loss and comprehensive loss for the year is attributable to the owners
of the parent company.
INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2025
30 June 2025 30 June 2024 31 December 2024
Unaudited Unaudited Audited
Notes € € €
Non-current assets
Intangible Assets 8 36,758,607 30,617,235 34,202,236
Property, plant and equipment 9 409,446 413,768 430,752
Right of Use Assets 10 220,035 220,035 279,566
37,388,088 31,251,038 34,912,554
Current assets
Trade and other receivables 11 281,410 409,378 371,142
Right of Use Assets 10 - 120,049 -
Cash and cash equivalents 4,667,416 9,287,751 5,216,085
4,948,826 9,817,178 5,587,227
Total Assets 42,336,914 41,068,216 40,499,781
Current liabilities
Trade and other payables 12 (311,744) (492,325) (1,106,584)
Lease Liabilities < 1 year 10 (120,693) (116,612) (118,652)
(432,437) (608,937) (1,225,236)
Net current assets 4,516,389 9,208,241 4,361,991
Non-current Liabilities
Deferred tax liability (1,382,868) (1,382,868) (1,382,868)
Lease Liabilities > 1 year 10 (103,798) (224,490) (164,687)
(1,486,666) (1,607,358) (1,547,555)
Total liabilities (1,919,103) (2,216,295) (2,772,791)
Net Assets 40,417,811 38,851,921 37,726,990
Equity
Share capital 14 6,167,588 5,377,253 5,377,253
Share premium 42,613,014 39,476,355 39,476,355
Other reserves 2,684,362 2,042,106 2,303,850
Retained losses (11,047,153) (8,043,793) (9,430,468)
Total equity 40,417,811 38,851,921 37,726,990
INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 30 JUNE 2025
Share Capital Share premium account Other reserves Retained losses Total
€ € € € €
Balance at 1 January 2025 5,377,253 39,476,355 2,303,850 (9,430,468) 37,726,990
Six months ended 30 June 2025
Loss and total other comprehensive loss for the period - - - (1,616,685) (1,616,685)
Currency translation difference - - (33) - (33)
Total comprehensive loss for the period - - (33) (1,616,685) (1,616,718)
Issue of share capital 790,335 3,161,343 - - 3,951,678
Share issue costs - (24,684) - - (24,684)
Credit to equity for equity settled share-based payments - - 380,545 - 380,545
Total transactions with owners directly in equity 790,335 3,136,659 380,545 - 4,307,539
Balance at 30 June 2025 6,167,588 42,613,014 2,684,362 (11,047,153) 40,417,811
Share Capital Share premium account Other reserves Retained losses Total
€ € € € €
Balance at 1 January 2024 5,365,379 39,403,810 1,896,531 (6,817,222) 39,848,498
Six months ended 30 June 2024
Loss and total other comprehensive loss for the period - - - (1,226,571) (1,226,571)
Currency translation difference - - 38 - 38
Total comprehensive loss for the period - - 38 (1,226,571) (1,226,533)
Issue of share capital 11,874 72,545 - - 84,419
Credit to equity for equity settled share-based payments - - 145,537 - 145,537
Total transactions with owners recognised directly in equity 11,874 72,545 145,537 - 229,956
Balance at 30 June 2024 5,377,253 39,476,355 2,042,106 (8,043,793) 38,851,921
INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED 30 JUNE 2025
30 June 2025 30 June 2024
Unaudited Unaudited
Notes
Cash flows from operating activities
Cash used in operations 15 (1,868,585) (2,154,765)
Net cash outflow from operating activities (1,868,585) (2,154,765)
Cash flows from investing activities
Exploration expenditure (2,557,424) (2,955,592)
Purchase of property, plant and equipment (11,086) (80,385)
Proceeds from sale of tangible assets 840 -
Interest received 23,682 241,332
Net cash used in investing activities (2,543,988) (2,794,645)
Cash flows from financing activities
Proceeds from the issue of shares 3,926,994 -
Lease payments (63,090) (69,030)
Net cash generated from / (used in) financing activities 3,863,904 (69,030)
Net decrease in cash and cash equivalents (548,669) (5,018,440)
Cash and cash equivalents at beginning of period 5,216,085 14,306,191
Cash and cash equivalents at end of period 4,667,416 9,287,751
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2024
Accounting Policies
Company Information
Zinnwald Lithium Plc ("the Company") is a public limited company which is
listed on the AIM Market of the London Stock Exchange domiciled and
incorporated in England and Wales.
The group consists of Zinnwald Lithium Plc and its wholly owned subsidiaries,
as follows as at 30 June 2025.
Name of undertaking Registered office Nature of business Class of shares held Direct holding Indirect holding
Zinnwald Lithium Holdings Ltd United Kingdom Exploration Ordinary 100.0% -
Zinnwald Lithium GmbH Germany Exploration Ordinary - 100.0%
Zinnwald Lithium Services GmbH Germany Leasing Ordinary - 100.0%
The registered office address of both Zinnwald Lithium Plc and Zinnwald
Lithium Holdings Ltd is 29-31 Castle Street, High Wycombe, Bucks, HP13 6RU.
The business office address of both Zinnwald Lithium GmbH (ZLG) and Zinnwald
Lithium Services GmbH (ZLSG) is now at Antonstrasse 3a, 01097, Dresden,
Germany, with effect from 21 June 2024.
1.1 Basis of preparation
These unaudited interim condensed consolidated financial statements have been
prepared under the historical cost convention and in accordance with the AIM
Rules for Companies. As permitted, the Company has chosen not to adopt IAS 34
"Interim Financial Statements" in preparing this interim financial
information. The unaudited interim condensed financial statements should be
read in conjunction with the annual report and financial statements for the
year ended 31 December 2024, have been prepared in accordance with UK-adopted
International Accounting Standards and IFRIC interpretations and with those
parts of the Companies Act 2006 applicable to companies reporting under UK
Adopted IAS (except as otherwise stated).
The unaudited interim condensed consolidated financial statements do not
constitute statutory financial statements within the meaning of the Companies
Act 2006. They have been prepared on a going concern basis in accordance with
the recognition and measurement criteria of UK adopted international
accounting standards. Statutory financial statements for the year ended 31
December 2024 were approved by the Board of Directors on 7 March 2025 and
delivered to the Registrar of Companies. The report of the auditor on those
financial statements was unqualified.
The same accounting policies, presentation and methods of computation are
followed in these unaudited interim condensed financial statements as were
applied in the preparation of the audited financial statements for the year
ended 31 December 2024.
The financial statements are prepared in euros, which is the functional
currency of the Company and the Group's presentation currency, since the
majority of its expenditure, including funding provided to ZLG and ZLSG, is
denominated in this currency. Monetary amounts in these financial statements
are rounded to the nearest €.
The € to GBP exchange rate used for translation as at 30 June 2025 was
€1.165379.
1.2 Basis of consolidation
The consolidated financial statements incorporate those of Zinnwald Lithium
Plc and all of its subsidiaries, as listed above (i.e., entities that the
group controls when the group is exposed to, or has rights to, variable
returns from its involvement with the entity and has the ability to affect
those returns through its power over the entity).
All intra-group transactions, balances and unrealised gains on transactions
between group companies are eliminated on consolidation.
Subsidiaries are fully consolidated from the date on which control is
transferred to the group. They are deconsolidated from the date on which
control ceases.
1.3 Going concern
At the time of approving the financial statements, the directors have a
reasonable expectation that the Group has adequate resources to continue in
operational existence for the foreseeable future. The Company had a cash
balance of €4.7m at the period end and keeps a tight control over all
expenditure. The Board maintains an ongoing strategy to enable the
curtailing of a number of areas of expenditure to enable it to meet its
minimum fixed costs for the next 12 months, even without raising further
funds, whilst still maintaining all licenses in good standing. Thus, the
going concern basis of accounting in preparing the Financial Statements
continues to be adopted.
1.4 Intangible assets
Capitalised Exploration and Evaluation costs
Exploration and evaluation assets are capitalised as Intangible Assets and
represent the costs incurred on the exploration and evaluation of potential
mineral resources. They include direct costs (such as permitting costs,
drilling, assays and flowsheet testwork done by consulting engineers), licence
payments and fixed salary/consultant costs, capitalised in accordance with
IFRS 6 "Exploration for and Evaluation of Mineral Resources". Exploration
and Evaluation assets are initially measured at historic cost. Exploration
and Evaluation Costs are assessed for indicators of impairment in accordance
with IFRS 6 when facts and circumstances suggest that the carrying amount of
an asset may exceed its recoverable amount. Any impairment is recognised
directly in profit or loss.
1.5 Property, plant and equipment
Property, plant and equipment are initially measured at cost and subsequently
measured at cost, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets
less their residual values over their useful lives on the following bases:
Leasehold land and buildings No depreciation is charged on these
balances
Plant and equipment 25% on cost
Fixtures and fittings 25% on cost
Computers 25% on
cost
Motor vehicles 16.7% on cost
for new vehicles, 33.3% on cost for second-hand vehicles
Low-value assets 100% on cost on
acquisition for items valued at less than €800
The gain or loss arising on the disposal of an asset is determined as the
difference between the sale proceeds and the carrying value of the asset and
is recognised in the income statement.
1.6 Impairment of non-current assets
At each reporting period end date, the group reviews the carrying amounts of
its tangible and intangible assets to determine whether there is any
indication that those assets have suffered an impairment loss. If any such
indication exists, the recoverable amount of the asset is estimated in order
to determine the extent of the impairment loss (if any). Where it is not
possible to estimate the recoverable amount of an individual asset, the group
estimates the recoverable amount of the cash-generating unit to which the
asset belongs.
Intangible assets not yet ready to use and not yet subject to amortisation are
reviewed for impairment whenever events or circumstances indicate that the
carrying value may not be recoverable.
Recoverable amount is the higher of fair value less costs to sell and value in
use. In assessing value in use, the estimated future cash flows are discounted
to their present value using a pre-tax discount rate that reflects current
market assessments of the time value of money and the risks specific to the
asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated
to be less than its carrying amount, the carrying amount of the asset (or
cash-generating unit) is reduced to its recoverable amount. An impairment loss
is recognised immediately in profit or loss, unless the relevant asset is
carried at a revalued amount, in which case the impairment loss is treated as
a revaluation decrease.
1.7 Cash and cash equivalents
Cash and cash equivalents include cash in hand and deposits held at call with
banks with a maturity date of less than 30 days.
1.8 Right of Use Assets and Lease Liabilities
All leases are accounted for by recognising a right-of-use assets due to a
lease liability except for:
· Lease of low value assets; and
· Leases with duration of 12 months or less
The Group reviews its contracts and agreements on an annual basis for the
impact of IFRS 16. The Group has such short duration leases and lease payments
are charged to the income statement with the exception of the Group's lease
for the Freiberg office and core shed, which expired in April 2024 and have
been replaced by new office leases in Dresden and Core Shed in Altenberg that
both started on 1 May 2024.
Lease liabilities are measured at the present value of the contractual
payments due to the lessor over the lease term, with the discount rate
determined by reference to the rate inherent in the lease unless (as is
typically the case) this is not readily determinable, in which case the
group's incremental borrowing rate on commencement of the lease is used.
Variable lease payments are only included in the measurement of the lease
liability if they depend on an index or rate. In such cases, the initial
measurement of the lease liability assumes the variable element will remain
unchanged throughout the lease term. Other variable lease payments are
expensed in the period to which they relate.
On initial recognition, the carrying value of the lease liability also
includes:
· amounts expected to be payable under any residual value
guarantee;
· the exercise price of any purchase option granted in favour of
the group if it is reasonably certain to assess that option;
· any penalties payable for terminating the lease, if the term of
the lease has been estimated on the basis of termination option being
exercised.
Right of use assets are initially measured at the amount of the lease
liability, reduced for any lease incentives received, and increased for:
· lease payments made at or before commencement of the lease;
· initial direct costs incurred; and
· the amount of any provision recognised where the group is
contractually required to dismantle, remove or restore the leased asset
Subsequent to initial measurement lease liabilities increase as a result of
interest charged at a constant rate on the balance outstanding and are reduced
for lease payments made. Right-of-use assets are amortised on a straight-line
basis over the remaining term of the lease or over the remaining economic life
of the asset if, rarely, this is judged to be shorter than the lease term.
2 Judgements and key sources of estimation uncertainty
In the application of the accounting policies, the directors are required to
make judgements, estimates and assumptions about the carrying amount of assets
and liabilities that are not readily apparent from other sources. The
estimates and associated assumptions are based on historical experience and
other factors that are considered to be relevant. Actual results may differ
from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis.
Revisions to accounting estimates are recognised in the period in which the
estimate is revised where the revision affects only that period, or in the
period of the revision and future periods where the revision affects both
current and future periods.
Critical judgements
The following judgements and estimates have had the most significant effect on
amounts recognised in the financial statements.
Share-based payments
Estimating fair value for share based payment transactions requires
determination of the most appropriate valuation model, which depends on the
terms and conditions of the grant. This estimate also requires determination
of the most appropriate inputs to the valuation model including the expected
life of the share option or appreciation right, volatility and dividend yield
and making assumptions about them. For the measurement of the fair value of
equity settled transactions with employees at the grant date, the Group and
Company use the Black Scholes model.
Impairment of Capitalised Exploration Costs
Group capitalised exploration costs had a carrying value as at 30 June 2025 of
€36,758,607 (31 December 2024: €34,202,236), which solely relate to the
Zinnwald Lithium Project, Management tests annually whether capitalised
exploration costs have a carrying value in accordance with the accounting
policy stated in note 1.6. Each exploration project is subject to a review
either by a consultant or an appropriately experienced Director to determine
if the exploration results returned to date warrant further exploration
expenditure and have the potential to result in an economic discovery. This
review takes into consideration long-term metal prices, anticipated resource
volumes and grades, permitting and infrastructure as well as the likelihood of
on-going funding from joint venture partners. In the event that a project does
not represent an economic exploration target and results indicate that there
is no additional upside, or that future funding from joint venture partners is
unlikely, a decision will be made to discontinue exploration.
In Germany, ZLGs core mining license at Zinnwald is valid to 31 December
2047. In 2024, the group published an updated Mineral Resource Estimate that
showed a materially increased resource that underpins both the size of the
Project and its long mine life. It shows that the Project is the second
largest hard-rock lithium project in the EU and the third largest in Europe as
a whole. ZLG has additional exploration licenses at Falkenhain valid to 31
December 2025 (for which the extension is being applied for), at Altenberg to
20 February 2027, at Sadisdorf to 30 June 2026, at Bärenstein valid to 30
June 2028 and the newly granted exploration license at Liebenau in 2023 and
valid to 1 April 2030. In March 2025, the Group published its PFS for the
Project that showed a pre-tax NPV of €3.3 billion and IRR of 23.8% on a
phased project initially producing 18,000 tonnes per annum of lithium
hydroxide scaling up to a peak production of 35,100 tonnes with a mine life in
excess of 40 years. Accordingly, the Board has concluded that no impairment
charge is required for these assets.
3 Segmental reporting
The Group operates solely in the UK and Germany. Activities in the UK
include the Head Office corporate and administrative costs whilst the
activities in Germany relate to ongoing development work at the group's wholly
owned Zinnwald Lithium Project. The reports used by the Board and Management
are based on these geographical segments.
Germany UK Total
2025 2025 2025
€ € €
Administrative expenses (408,321) (856,352) (1,264,673)
Share based payment charge - (380,545) (380,545)
Loss on foreign exchange (1,542) (17,846) (19,388)
Other operating income 21,201 10,782 31,983
Finance income 7,661 16,021 23,682
Interest Paid (1,243) - (1,243)
Tax (6,501) - (6,501)
Loss from operations per reportable segment (388,745) (1,227,940) (1,616,685)
As at 30 June 2025
Reportable segment assets 35,328,329 7,008,585 42,336,914
Reportable segment liabilities 1,883,740 35,363 1,919,103
Germany UK Total
2024 2024 2024
€ € €
Administrative expenses (520,159) (808,446) (1,328,605)
Share based payment charge - (304,818) (304,818)
Gain on foreign exchange - 99,296 99,296
Other operating income 68,415 - 68,415
Finance income - 241,332 241,332
Interest Paid (2,191) - (2,191)
Loss from operations per reportable segment (453,935) (772,636) (1,226,571)
As at 30 June 2024
Reportable segment assets 30,156,337 10,911,880 41,068,217
Reportable segment liabilities 2,062,391 153,905 2,216,296
4 Operating loss
2025 2024
€ €
Operating loss for the period is stated after charging / (crediting)
Exchange losses / (gains) 19,388 (99,296)
Depreciation of Right of Use Assets 59,531 66,194
Depreciation of owned property, plant and equipment 32,359 30,457
Amortisation of intangible assets 1,053 13,494
Gain on disposal of fixed assets (840) -
Share-based payment expense 380,545 304,818
Operating lease charges 25,550 44,906
Exploration costs expensed 316,586 423,407
5 Other operating income
2025 2024
€ €
Other operating income 31,983 68,415
Other operating income includes income for use of hydrogeological data.
Prior period primarily comprised rental and utilities income from sub-lessors
at the Group's former offices in Freiberg.
6 Finance income
2025 2024
€ €
Interest income
Interest on bank deposits 23,682 241,332
7 Earnings per share
2025 2024
€ €
Weighted average number of ordinary shares for basic earnings per share 477,159,468 474,458,825
Effect of dilutive potential ordinary shares
- Weighted average number of outstanding share options/RSUs and PSUs 28,907,354 22,276,104
Weighted average number of ordinary shares for diluted earnings per share 506,066,822 496,734,929
Earnings
Continuing operations (1,616,685) (1,226,571)
Loss for the period for continuing operations
Earnings for basic and diluted earnings per share distributable to equity (1,616,685) (1,226,571)
shareholders of the company
Earnings per share for continuing operations
Basic earnings per share
Basic earnings per share (0.33) (0.25)
There is no difference between the basic and diluted earnings per share for
the period ended 30 June 2025 or 2024 as the effect of the exercise of options
would be anti-dilutive.
8 Intangible Assets
Total
€
Cost
At 1 January 2025 34,207,732
Additions - group funded 2,557,424
At 30 June 2025 36,765,156
Amortisation and impairment
At 1 January 2025 5,496
Amortisation charged for the period 1,053
At 30 June 2025 6,549
Carrying amount
At 30 June 2025 36,758,607
Intangible assets comprise capitalised exploration and evaluation costs
(direct costs, licence fees and fixed salary / consultant costs) of the
Zinnwald Lithium project in Germany.
9 Property plant and equipment
Leasehold, land and buildings Fixtures, fittings and equipment Motor vehicles Total
€ € € €
Cost
At 1 January 2025 100,990 458,914 66,593 626,497
Additions 8,400 2,686 - 11,086
Disposals - (840) - (840)
Exchange adjustments - (260) - (260)
At 30 June 2025 109,390 460,500 66,593 636,483
Depreciation and impairment
At 1 January 2025 - 151,559 44,185 195,744
Depreciation charged for the period - 25,717 6,642 32,359
Disposals - (840) - (840)
Exchange adjustments - (226) - (226)
At 30 June 2025 - 176,210 50,827 227,037
Carrying amount
At 30 June 2025 109,390 284,290 15,766 409,446
10 Right of Use Assets and Lease Liabilities
In May 2024, Zinnwald Lithium GmbH entered into two new commercial lease
agreements for an office in Dresden and a Core Shed in Altenberg. The
duration of both leases are for 3 years and expire in April 2027. The
Dresden lease can be renewed for two further 3-year periods in 2027 and 2030.
The Altenberg lease can be renewed for a further 3-year period in 2027 and a
further 4-year period in 2030. The monthly combined leases instalments are
€10,515 per month, fixed for the duration of the leases. The monthly
combined leases instalments are €10,515 per month, fixed for the duration of
the leases. Movements in the period are shown as follows:
Total
€
Right of Use Asset
At 1 January 2025 279,566
Depreciation in the period (59,531)
At 30 June 2025 220,035
Lease Liability
At 1 January 2025 283,339
Interest charged in the period 4,242
Lease payments in the period (63,090)
At 30 June 2025 224,491
- Recognised in short-term payables 120,693
- Recognised in payables > 1 year 103,798
11 Trade and other receivables
30 June 2025 31 December 2024
Amounts falling due within one year: € €
Trade Receivables 2,274 439
Other taxation and social security 8,025 -
Other receivables 138,807 235,344
Prepayments and accrued income 132,304 135,359
At period end 281,410 371,142
12 Trade and other payables
30 June 2025 31 December 2024
Amounts falling due within one year: € €
Trade payables 105,250 343,391
Other taxation and social security - 61,465
Other payables 31,456 61,234
Accruals and deferred income 175,038 640,494
At period end 311,744 1,106,584
13 Share based payment transactions
30 June 2025 30 June 2024
Expenses recognised in the period € €
Options issued under the Share Option Plan (2017) 128,203 104,158
RSUs issued under RSU Scheme (2020) 192,173 151,007
PSUs issued under PSU Scheme (2020) 60,169 49,653
At period end 380,545 304,818
Awards made under the various share incentive schemes will be expensed over
the relevant vesting periods for each scheme. On 31 January 2025. a total of
3,600,000 Options were granted to employees, consultants and Directors of the
Group at a price of 7.50p, together with 2,624,814 RSUs and 694,061 PSUs to
the Executive Directors.
Options and PSUs have been expensed based on a Black Scholes calculation using
an option life of 5 years and a risk-free interest rate of 3.9%. The Company
has used a volatility rate of 64.1% looking back 4 years from the date of
grant to account for the material distorting event of the Company's
readmission to AIM in October 2020 following its reverse takeover acquisition
of the Zinnwald Project. The Company will use a 5 year look back for all
future grants going forward.
14 Share Capital
30 June 2025 31 December 2024
Ordinary share capital € €
Issued and fully paid
542,354,605 ordinary shares of 1p each (2024: 474,536,675) 6,167,588 5,377,253
The Group's share capital is issued in GBP £ but is converted into the
functional currency of the Group (Euros) at the date of issue of the shares.
Reconciliation of movements during the period:
Ordinary Number Ordinary Value
€ €
Ordinary shares of 1p each
At 1 January 2025 474,536,675 5,377,253
Issue of fully paid shares 67,817,930 790,335
At 30 June 2025 542,354,605 6,167,588
15 Cash (used in)/generated from group operations
2024 2024
€ €
Loss for the period after tax (1,616,685) (1,226,571)
Adjustments for:
Investment income (23,682) (241,332)
Lease interest 4,242 2,191
Gain on disposal of fixed assets (840) -
Depreciation of Right of Use Assets 59,531 66,194
Depreciation of property, plant and equipment 32,359 30,457
Amortisation of Intangible Assets 1,053 13,494
Equity-settled share-based payment expense 380,545 304,818
RSUs expensed in previous period - (74,862)
Movements in working capital:
Decrease / (Increase) in trade and other receivables 89,731 (52,665)
Decrease in trade and other payables (794,839) (976,489)
Cash used in operations (1,868,585) (2,154,765)
16 Events after the reporting date
There are no events after the balance sheet date to report.
17 Approval of interim condensed consolidated financial statements
These interim condensed financial statements were approved by the Board of
Directors on 25 September 2025.
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 (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END IR BLGDCUSDDGUURecent news on Zinnwald Lithium
See all newsREG - Zinnwald Lithium PLC - Half-year Report
AnnouncementREG - Zinnwald Lithium PLC - Total Voting Rights
AnnouncementREG - Zinnwald Lithium PLC - Result of AGM
AnnouncementREG - Zinnwald Lithium PLC - AGM Statement
AnnouncementREG - AIM - AIM Notice - 24/06/2025
Announcement