21 February 2024
Power
Metal Resources plc
("Power
Metal" or the "Company")
Audited Financial Results for
the Year Ended 30 September 2023
Power Metal Resources plc (LON:POW)
the London listed exploration company seeking large-scale metal
discoveries across its global project portfolio announces its
consolidated audited results for the year ended 30 September 2023,
for the Company and its subsidiaries (together the
"Group").
Introduction
The cyclical downturn in the mineral
resource exploration sector continued throughout the year under
review, with increasing signs however that this pressure may now be
easing not least with the strong increases in the prices of gold
and uranium, two commodities of focus within the Company's
portfolio.
The year saw the Company continue to
focus on its business model of advancing robust internal
exploration programmes to seek major metal discoveries and build
underlying project value, whilst also looking in parallel for
significant value crystallisation through corporate activity to
build the value of the Company.
Exploration
Activity
Athabasca Uranium Exploration
Power Metal currently has a 100%
interest in 18 uranium properties covering over 1000km2
in the Athabasca Region of Saskatchewan, Canada. This is the
largest ground footprint in the Athabasca Region held by a UK
listed company.
Power Metal's technical team
selected the Athabasca footprint by painstaking review of
historical exploration data from work conducted and paid for by
others, applying modern geological knowledge and techniques to
identify what we believe to be the best available ground. The
ground was available either because other explorers had
relinquished their interests during the long-term uranium bear
market or because the geological opportunities the Company
identified had, at that stage, not been noted by others.
2023 saw the largest Athabasca
uranium exploration programme ever undertaken by the Company with
significant early findings announced recently.
Our 2023 exploration programme has
covered approximately 10 properties and to date we have announced
major exploration results from across the portfolio, with further
updates expected.
Africa Exploration
Tati Project
The 100% owned Tati Gold Project
("Tati") is centred on a historical gold mine, Cherished Hope, and
extensions of high-grade near surface gold mineralisation were
confirmed during drilling campaigns carried out by Power Metal in
2021 and 2022.
Next stage exploration focused on
geochemical soil sampling at Tati is now complete. A total of 280
individual samples were collected across two grids:
•
One high-resolution in-fill grid is focussed on an
area approximately 2km northwest of the historical Cherished Hope
Gold Mine and is centred on one point anomaly which historically
returned an impressive soil sample of 2.15g/t Au. To date, this
anomaly has never been further investigated to determine the
provenance of this gold mineralisation; and
•
The second grid covers the immediate southwestern
extension of Cherished Hope where individual point anomalies
returned a soil sample as high as 0.84g/t Au.
The soil samples have been sent to
Intertek Genalysis in Perth, Western Australia for assay and final
results are awaited.
Site rehabilitation of the fines
dumps covering Tati have been completed in preparation for the next
phase of exploration and development. This rehabilitation work
included removal of the fines dump and clearing the site of
material considered by Power Metal to be suitable for processing at
a local facility.
The Company has received inbound
interest regarding the potential for small-scale mining at its
Cherished Hope Gold Mine area where near-surface drilling results
in 2022 returned bonanza gold up to 47.1g/t Au over 1m (from 6m
downhole).
Molopo Farms Complex Project
During the year, Power Metal
acquired an additional 58.7% interest in Kalahari Key Mineral
Exploration Pty Ltd, bringing its total interest to 87.71%.
Kalahari Key Mineral Exploration Pty Ltd is a Botswana-incorporated
private company, which holds a 100% interest in the Molopo Farms
Complex Project.
Extensive exploration to date has
confirmed the feeder zone geological model, together with the
presence of nickel sulphides and platinum group elements ("PGEs")
through drilling as announced on 27 April 2023 which includes 2.3m
@ 0.56g/t Pt+Pd+Au & 0.17% Ni from DDH1-6B, and by aggregating
and analysing the extensive database of historical work has now
identified the highest profile conductor drill target to
date.
Power Metal sees the potential for a
district-scale nickel and PGE discovery at Molopo and will
undertake the next diamond drill programme with this objective in
focus.
North American Exploration
North Wind
The 100% Power Metal owned North
Wind Lithium Project ("North Wind") is considered by the Company to
be prospective for the discovery of pegmatite hosted lithium
mineralisation. Lithium (Li)-caesium (Cs)-tantalum (Ta) bearing
pegmatite ("LCT-pegmatite") accounts for approximately a quarter of
the world's lithium production.
The exploration work programme first
announced on 10 August 2023 is now complete and a total of 389 soil
geochemical samples were taken. Significantly, several
pegmatites were identified across North Wind, with five pegmatite
samples collected - which was a key ground exploration
objective. The mineralisation present within the identified
pegmatites will be determined during the assay testing process and
based on interpretation of this data further exploration steps will
be determined.
Corporate
Activity
Athabasca Uranium Corporate Activity
Power Metal announced the
conditional disposal of the Reitenbach and E-12 properties into
Teathers Financial Plc (soon to be renamed Uranium Energy
Exploration ("UEE")). Plans for an IPO of UEE are
advancing.
The Company has also received third
party interest across our uranium portfolio and further commercial
transactions are anticipated however shareholders should note that
there can be no certainty of any such transactions being
concluded.
Africa Corporate Activity
Third parties have expressed
interest in both Tati and Molopo Farms Complex projects and the
Company is engaged in discussions to explore complementary, joint
venture and other project level partnerships.
Power Metal continues to liaise with
our partner Katoro Gold plc to seek a new pathway for advancement
of the Haneti Project in Tanzania where the Company holds a 35%
interest.
North America Corporate Activity
Golden Metal Resources PLC ("GMET")
successfully listed on the London Stock Exchange in May 2023 with
Power Metal holding an interest following their IPO financing of
61.03%, worth c.£7.1 million as at the date of this report. Power
Metal also holds 1,749,378 warrants to acquire new GMET ordinary
shares at an exercise price of 10.75p per share and with an expiry
date of 10 May 2024, and a further 1,749,378 warrants at an
exercise price of 17.5p per share and with an expiry date of 10 May
2025.
Power Metal's 100% owned ION Battery
Resources Limited ("ION") holds 100% of the North Wind project
(transfer completed in May 2023) where lithium focused exploration
is currently underway, together with 100% of Doerksen Bay graphite
project and a project option to earn-in to the Authier North/Duval
East lithium project.
The next corporate steps for ION are
to be determined following a review of assay results from the North
Wind summer exploration programme.
The Company's 30% interest in the
Silver Peak project remains as previously stated and we are working
with our partners on the next commercial steps for this important
asset.
Australia Corporate Activity
Through its Australian operating
subsidiary, Red Rock Australasia Pty Ltd, NBGC has a substantial
licence footprint within the Victoria Goldfields, Australia, which
is comprised of 17 granted exploration licences covering
1,867km2 and 5 licence applications covering
493km2. Power Metal is working with its joint venture
partner Red Rock Resources plc to expedite the commercial success
of this strategic Australian opportunity.
First Development Resources PLC
("FDR") holds strategic exploration projects in Western Australia
and the Northern Territory and is prepared for an IPO listing
which, subject to a return to normalised market conditions and
final regulatory approvals, can be undertaken at short
notice. In Western Australia FDR holds the Wallal Project
which includes the Company's primary target - the Eastern Anomaly,
a magnetic bullseye target with a geophysical signature similar to
Greatland Gold's Havieron discovery in the Paterson
Region.
FDR has secured a c.£110k co-funding
grant from the Western Australian government as part of the
Exploration Incentive Scheme to be set against the costs of Wallal
drilling and has received all the necessary local approvals for the
drilling to be undertaken. FDR has also agreed a contract
with DDH1 Drilling Ltd to undertake the Phase I diamond drilling
drill programme and has prepared the access and the drill pad
location in readiness for drilling. Recognising this
progress, the early commencement of drilling is being considered
alongside the work being undertaken to progress the IPO.
Finally, Power Metal holds a 20%
interest in New Horizon Metals Pty Ltd, which holds projects in
Queensland and South Australia, and is working towards a listing in
the Australian capital markets.
Financial
Review
Total comprehensive loss for the
year to 30 September 2023 of £1.3 million (2022: loss of £137k).
The increase in loss from September 2022 is in part due to the
capital contribution balance recognised during the prior year. The
capital contribution balance arose on the completion of the capital
reorganisation of the Golden Metal Resources Plc group.
Pre-non-controlling interest total
equity of £13.6 million at the year-end (2022: £11.7
million).
Raised £3.6 million (before issue
costs) in new equity financing during the financial year, from a
combination of new and existing shareholders, including the
Directors.
An additional £43.8k of cash
received by the Company during the year from exercises of Power
Metal share warrants and £Nil cash received by the Company during
the year from exercises of Power Metal share options. £1.1 million
of shares were issued in relation to acquisitions in various
investments and projects.
The Company ended the financial year
with a cash balance of £1.10 million (2022: £1.56
million).
Cash balances held at the year-end
are supplemented by listed company shares and warrants (cash
equivalents), which represent a further pool of accessible cash
available on the sale of shares in listed companies.
Corporate Social
Responsibility ("CSR")
The Company maintains a focus on CSR
through internal policies and our approach to external operational
activities.
During the year and after the year
end the Company developed its internal environmental, social and
governance ("ESG") policies and procedures to codify many of the
practices in place at the Company and to introduce a number of new
initiatives.
The Company will continue to
prudently invest in the regions in which we have business
activities, in support of the communities where we operate. As an
early-stage company, Power Metal is keen to employ workers from the
areas in which we operate, and to operate in a safe, responsible,
and reasonable manner.
As certain projects mature, we would
expect our community engagement to become more extensive in line
with the level of operational activities.
Board
Changes
In March 2023, Sean Wade was
appointed to the Board as Chief Executive Officer and Executive
Director, replacing Paul Johnson.
In May 2023, Bill Brodie Good was
appointed to the Board as Non-Executive Director.
In January 2024, Owain Morton
resigned from the Board as Non-Executive Director.
Outlook
Power Metal continues to execute on
its robust business model of exploration/development project
generation and advancement and value crystallisation.
In addition to the multiple
potential district scale exploration and development projects
currently within the portfolio, the Company continues to seek new
opportunities for shareholder value creation.
A number of such opportunities are
currently in the pipeline and the Board remains confident that with
ongoing operations and also as junior resource and commodity market
conditions normalise, the Company is in an excellent position to
deliver value to shareholders.
Notice of Annual General
Meeting and Distribution of Accounts to
Shareholders
The Company's Annual General Meeting
("AGM") will take place at 10.00am on 26 March 2024 at Temple
Chambers, 3-7 Temple Avenue, London, EC4Y ODT. The Company's
Annual Report and Accounts for the year ended 30 September 2023
will be posted to shareholders this week. Copies of the Notice of
AGM and the Annual Report and Accounts will also be available on
the Company's website at www.powermetalresources.com in
due course.
CONSOLIDATED STATEMENT OF COMPREHENSIVE
INCOME
FOR
THE YEAR ENDED 30 SEPTEMBER 2023
|
Note
|
|
2023
£'000
|
|
2022
£'000
|
Revenue
|
|
|
78
|
|
37
|
Gross profit
|
|
|
78
|
|
37
|
|
|
|
|
|
|
Operating expenses
|
4
|
|
(2,777)
|
|
(3,127)
|
Fair value gains through profit or
loss
|
|
|
1,604
|
|
309
|
Loss
from operating
activities
|
|
|
(1,095)
|
|
(2,781)
|
|
|
|
|
|
|
Share of post-tax losses of equity
accounted joint ventures
|
|
|
(219)
|
|
(167)
|
|
|
|
|
|
|
Loss
before tax
|
|
|
(1,314)
|
|
(2,948)
|
|
|
|
|
|
|
Taxation
|
|
|
-
|
|
-
|
|
|
|
|
|
|
Loss
for the year from continuing operations
|
|
|
(1,314)
|
|
(2,948)
|
|
|
|
|
|
|
Other comprehensive (expense)/income
|
|
|
|
|
|
Items that will or may be reclassified to profit or
loss:
|
|
|
|
|
|
Exchange translation
|
|
|
6
|
|
18
|
Items that will not be reclassified to profit or
loss:
|
|
|
|
|
|
Capital contribution
|
|
|
-
|
|
2,793
|
|
|
|
|
|
|
Total other comprehensive (expense)/income
|
|
|
6
|
|
2,811
|
|
|
|
|
|
|
Total comprehensive loss for the year
|
|
|
(1,308)
|
|
(137)
|
|
|
|
|
|
|
Loss
for the period attributable to:
|
|
|
|
|
|
Owners of the parent
|
|
|
(1,096)
|
|
(2,256)
|
Non-controlling interests
|
|
|
(218)
|
|
(692)
|
|
|
|
(1,314)
|
|
(2,948)
|
Total comprehensive (loss)/income attributable
to:
|
|
|
|
|
|
Owners of the parent
|
|
|
(1,083)
|
|
82
|
Non-controlling interests
|
|
|
(225)
|
|
(219)
|
|
|
|
(1,308)
|
|
(137)
|
Earnings per share from continuing
operations attributable to
|
|
|
|
|
|
the ordinary equity holder of the
parent:
|
|
|
|
|
|
Basic and diluted loss per share (pence)
|
8
|
|
(0.06)
|
|
(0.15)
|
|
|
|
|
|
|
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS
AT 30 SEPTEMBER 2023
|
|
|
2023
|
|
2022
|
|
Note
|
|
£'000
|
|
£'000
|
Assets
|
|
|
|
|
|
Intangible assets
|
5
|
|
4,947
|
|
7,138
|
Investments in associates and joint
ventures
|
|
|
290
|
|
402
|
Financial assets at fair value
through profit or loss
|
|
|
1,161
|
|
1,620
|
Property, plant and
equipment
|
|
|
8
|
|
33
|
Non-current assets
|
|
|
6,406
|
|
9,193
|
|
|
|
|
|
|
Financial assets at fair value
through profit or loss
|
|
|
7,188
|
|
2,384
|
Trade and other
receivables
|
6
|
|
481
|
|
346
|
Cash and cash equivalents
|
|
|
1,098
|
|
1,560
|
Assets classified as held for
sale
|
|
|
191
|
|
1,124
|
Current assets
|
|
|
8,958
|
|
5,414
|
|
|
|
|
|
|
Total assets
|
|
|
15,364
|
|
14,607
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
Share capital
|
7
|
|
8,531
|
|
8,065
|
Share premium
|
7
|
|
27,497
|
|
23,312
|
Capital redemption reserve
|
|
|
5
|
|
5
|
Capital contribution
reserve
|
|
|
-
|
|
2,322
|
Share based payment
reserve
|
|
|
1,712
|
|
1,638
|
Exchange reserve
|
|
|
103
|
|
90
|
Accumulated losses
|
|
|
(24,276)
|
|
(23,740)
|
Total
|
|
|
13,572
|
|
11,692
|
|
|
|
|
|
|
Non-controlling interests
|
|
|
907
|
|
2,065
|
Total equity
|
|
|
14,479
|
|
13,757
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
Trade and other payables
|
9
|
|
885
|
|
850
|
Current liabilities
|
|
|
885
|
|
850
|
|
|
|
|
|
|
Total liabilities
|
|
|
885
|
|
850
|
|
|
|
|
|
|
Total equity and liabilities
|
|
|
15,364
|
|
14,607
|
The financial statements of Power
Metal Resources PLC, company number 07800337, were approved by the
board of Directors and authorised for issue on 20 February
2023.
CONSOLIDATED STATEMENT OF
CASHFLOWS
AS AT 30 SEPTEMBER 2023
|
|
2023
£'000
|
|
2022
£'000
|
Cash
flows used in operating activities
|
|
|
|
|
Loss for the year from continuing
activities
|
|
(1,314)
|
|
(2,948)
|
Adjustments for:
|
|
|
|
|
Fair value adjustments
|
|
(1,604)
|
|
(309)
|
Share of post-tax losses of equity
accounted joint ventures
|
|
219
|
|
167
|
Expenses settled in shares
|
|
129
|
|
-
|
Disposals of financial
assets
|
|
(175)
|
|
245
|
Depreciation
|
|
5
|
|
-
|
Foreign exchange
differences
|
|
(33)
|
|
101
|
Share-based payment
expense
|
|
30
|
|
11
|
|
|
(2,743)
|
|
(2,733)
|
|
|
|
|
|
Changes in working
capital:
|
|
|
|
|
Increase in trade and other
receivables
|
|
(169)
|
|
(250)
|
Increase in trade and other
payables
|
|
797
|
|
477
|
Net
cash used in operating activities
|
|
(2,115)
|
|
(2,506)
|
|
|
|
|
|
Cash
flows from investing activities
|
|
|
|
|
Purchase of financial assets at fair
value through profit or loss
|
|
-
|
|
(426)
|
Investments in financial assets
through P&L
|
|
(291)
|
|
-
|
Investment in joint
ventures
|
|
-
|
|
(188)
|
Investments in associates
|
|
(316)
|
|
-
|
Investments in intangibles
|
|
(797)
|
|
(1,530)
|
Cash relating to deconsolidated
subsidiary
|
|
(410)
|
|
-
|
Purchase of property, plant, and
equipment
|
|
(8)
|
|
(32)
|
Net
cash outflows from investing activities
|
|
(1,822)
|
|
(2,176)
|
|
|
|
|
|
Cash
flows from financing activities
|
|
|
|
|
Proceeds from issue of share
capital
|
|
3,616
|
|
3,211
|
Shares issued to non-controlling
interests by subsidiaries
|
|
79
|
|
1,875
|
Issue costs
|
|
(220)
|
|
(125)
|
Net
cash inflows from financing activities
|
|
3,475
|
|
4,961
|
|
|
|
|
|
(Decrease)/increase in cash and cash
equivalents
|
|
(462)
)
|
|
279
|
|
|
|
|
|
Cash and cash equivalents at
beginning of year
|
|
1,560
|
|
1,281
|
|
|
|
|
|
Cash
and cash equivalents at 30 September
|
|
1,098
|
|
1,560
|
Significant non-cash transactions during the
year
During the year, the Group acquired
intangible assets, either directly or indirectly via subsidiary
undertakings and investments in subsidiaries, totalling
£1,146k via the
issue of ordinary shares.
Power Metal disposed of its
investment in Kanye Resources Pty Ltd during the year, which was
previously held for sale. In consideration, the Company received
shares and warrants in Kavango Resources PLC to the value of
£1,114k.
On 10 May 2023, Golden Metal
Resources PLC ("GMET") listed on the AIM market of the London Stock
Exchange, resulting in a dilution of POW's shareholding leading to
a disposal of the subsidiary investment during the year. On the IPO
date, Power Metal disposed of the subsidiary investment and
recognised a financial asset, including an uplift in fair
value.
NOTES TO THE CONSOLODATED FINANCIAL
STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER
2023
1.
Reporting
entity
Power Metal Resources PLC is a
public company limited by shares which is incorporated and
domiciled in England and Wales. The address of the Company's
registered office is 201 Temple Chambers, 3-7 Temple Avenue,
London, EC4Y 0DT. The consolidated financial statements of the
Group as at and for the year ended 30 September 2023 include the
Company and its subsidiaries. The Group is primarily involved in
the exploration and exploitation of mineral resources in Africa,
Australia, Canada and the US.
2.
Going
concern
The financial statements are
prepared on a going concern basis. In assessing whether the going
concern assumption is appropriate, the Directors have considered
all relevant available information about the current and future
position of the Group, including current level of resources,
additional funding raised during the year and post-year-end, and
the required level of spending on exploration and drilling
activities. As part of their assessment, the Directors have also
taken into account the ability to raise new funding whilst
maintaining an acceptable level of cash flows for the Group to meet
all commitments.
The Directors have stress tested the
Group's cash projections, which involves preserving cash flows and
adopting a policy of minimal cash spending for a period of at least
12 months from the date of approval of these financial statements.
The Directors believe the measures they have put in place will
result in sufficient working capital and cash flows to continue in
operational existence, assuming that all exploration and drilling
activities are managed carefully and curtailed if necessary. For
the Group to carry out the desired levels of exploration and
drilling activities, the Directors believe that it needs to secure
further funding either from a strategic partner or subsequent
equity raisings in the next financial year, which the Group has
succeeded in completing over recent years. The Group also has the
ability to partially dispose of equity investments if required.
Taking these matters in consideration, the Directors continue to
adopt the going concern basis of accounting in the preparation of
the financial statements.
The financial statements do not
include the adjustments that would be required should the going
concern basis of preparation no longer be appropriate.
3.
Intangible assets - Prospecting and exploration
rights
Rights acquired with subsidiaries
are recognised at fair value at the date of acquisition. Other
rights acquired and development expenditure are recognised at
cost.
Exploration and evaluation costs
arising following the application for the legal right, are
capitalised on a project-by-project basis, pending determination of
the technical feasibility and commercial viability of the project.
When a project is deemed not feasible, related costs are expensed
as incurred. Costs incurred include any costs pertaining to
technical and administrative overheads. Administration costs that
are not directly attributable to a specific exploration area are
expensed as incurred, and subsequently capitalised if it is
reasonably certain that a resource will be defined. Capitalised
development expenditure will be measured at cost less accumulated
amortisation and impairment losses.
4.
Operating expenses
Operating expenses
include:
|
2023
|
|
2022
|
|
£'000
|
|
£'000
|
Staff costs
|
957
|
|
960
|
Foreign exchange loss
|
62
|
|
11
|
Share based payment
expense
|
31
|
|
70
|
(Gain)/Loss on disposal
|
(175)
|
|
180
|
Auditor's remuneration for audit of
the Group and Company financial statements
|
36
|
|
29
|
5.
Intangible
assets
Group
|
Prospecting and exploration
rights
£'000
|
Cost
|
|
As at 30 September 2021
|
1,926
|
Reclassification from financial
assets
|
136
|
Reclassification to assets held for
sale
|
(993)
|
Additions
|
7,186
|
Effect of foreign exchange
|
9
|
Balance at 30 September 2022
|
8,264
|
|
|
As at 30 September 2022
|
8,264
|
Reclassification from financial
assets
|
878
|
Reclassification to assets held for
sale
|
(60)
|
Reclassification from
associate
|
209
|
Additions
|
2,067
|
Disposal
|
(5,035)
|
Subsidiary sale of shares
|
(79)
|
Effect of foreign exchange
|
(171)
|
Balance at 30 September 2023
|
6,073
|
|
|
Impairment
|
|
As at 30 September 2021
|
1,126
|
Balance at 30 September 2022
|
1,126
|
|
|
As at 30 September 2022
|
1,126
|
Charge
|
-
|
Balance at 30 September 2023
|
1,126
|
|
|
Net
book value
|
|
At 30 September 2022
|
7,138
|
At 30 September 2023
|
4,947
|
During the year, the Group's direct
interest in the Garfield, Stonewall, Golconda Summit & Pilot
Mountain Projects was disposed of. The Group acquired additional
intangible assets in Molopo Farm and North Wind, see
below:
|
2023
£'000
|
|
2022
£'000
|
Intangible assets
|
|
|
|
Athabasca Uranium Project
|
349
|
|
175
|
Authier North Project
|
74
|
|
16
|
Canadian Graphite Project
|
137
|
|
99
|
Tati Gold-Nickel Project
|
384
|
|
359
|
Garfield, Stonewall, Golconda Summit
& Pilot Mountain Projects
|
-
|
|
4,865
|
Wallal, Braeside West, Selta &
Ripon Hill Projects
|
1,692
|
|
1,624
|
Molopo Farm Project
|
2,276
|
|
-
|
North Wind Project
|
35
|
|
-
|
Total
|
4,947
|
|
7,138
|
The Directors regularly assess the
carrying value of the Group's assets, including its prospecting and
exploitation rights, and write off any exploration expenditure that
they believe to be irrecoverable.
Athabasca Uranium Project
As at 30 September 2023, the Group
held 17 properties covering 1000km2 in the Athabasca
Region of Saskatchewan, Canada. This is the largest ground
footprint in the Athabasca Region held by a UK listed
company.
The conditional disposal of two
properties held at the Athabasca project were announced previously;
Reitenbach, in August 2022 and E-12 in November 2022. Work is still
in process to complete the transaction through a listing on the
London capital markets for the proposed holding vehicle, Teathers
Financial PLC, to be renamed Uranium Energy Exploration PLC
("UEE"). The two properties were moved to assets held for sale in
the statement of financial position as at 30 September 2022. Since
then, considerable progress has been made on the structure of the
transaction and the advancement of the assets, a key component of
which has been the successful completion of a pre-IPO financing
which was announced on 13 December 2023.
Authier North Project
In July 2023, Power Metal announced
the early completion of its earn-in to a 100% interest in Authier
North. The Authier North Property consists of 15 mineral claims
covering an area of approximately 560 hectares and is prospective
for lithium pegmatites and base metal mineralisation.
Canadian Graphite Project
In January 2023, Power Metal
announced the acquisition of the 4,222-hectare Doerksen Bay
Graphite Project located in Saskatchewan, Canada. Power Metal
transferred its interest into newly formed 100% subsidiary ION
Battery Resources Limited ("ION"). The project gives exposure to
the exciting graphite space, a key component in new age battery
technology. The Project is centred around five Saskatchewan
Mineral Deposit Index graphite occurrences including the Ben, Ben
North, Bear Bones, Brabant Lake and Doerksen Bay
showings.
Tati Gold-Nickel Project
In September 2022, the Company
announced the completion of 490m of RC drilling over 9 holes and
the successful intersection of quartz reef in all holes drilled,
with multiple holes intersecting multiple sub-parallel quartz reef
structures. Further 2023 geochemical soil sampling assay results
confirmed two significant gold-in-soil geochemical anomalies and
continuity within the 8km gold trend at Tati. Six unique additional
target areas have been identified for detailed soil sampling which
is expected to include a total of c. 450 individual soil samples
for follow on accredited laboratory gold assay testing. Further
sampling at this target area will be focussed on in-fill as well as
step-out sampling to better understand the size and orientation of
this priority zone.
Garfield, Stonewall, Golconda Summit and Pilot Mountain
Projects
On 10 May 2023, Golden Metal
Resources PLC ("GMET") listed on the AIM market of the London Stock
Exchange, relating in a dilution of POW's shareholding leading to a
disposal of the subsidiary investment during the year. POW's
interests in the projects were therefore disposed of, and the
investment in GMET was subsequently recognised as a financial
asset.
Wallal Project, Ripon Hills, Braeside Project and Selta
Project
First Development Resources Pty Ltd
("FDR Pty"), a 100% subsidiary of First Development Resources PLC
("FDR"), holding the Wallal licences, located in the Paterson
Province of Western Australia. The Wallal project covers an area of
572km2 and is the Group's primary focus in the region.
It is of particular interest due to a number of geophysical
anomalies which have been identified following the completion of an
in-depth study which included the reprocessing of historic seismic
data along with the analysis of historic magnetic and gravity
geophysical surveys.
Pardoo Resources Pty Ltd ("Pardoo")
and RH Resources Pty Ltd ("RH Pty"), both 100% subsidiaries of FDR,
hold the fully licenced Ripon Hills and Braeside West Projects
which cover a combined area of approximately
300km2.
The tenements are located approximately 250 km southeast of Port
Hedland on the western edge of the Paterson Province in Western
Australia. The projects are located on the western and eastern
limbs of the Oakover Syncline. The area is primarily prospective
for manganese, similar to the nearby Woodie Woodie manganese mine,
as well as base-metal and gold mineralisation associated with deep
seated north to north-westerly trending fault structures. These
fault structures have the potential to be conduits for various
styles of hydrothermal mineralisation as evidenced by recent
exploration conducted by ASX listed Rumble Resources Limited on
land adjacent to the Braeside West tenement.
URE Metals Pty Ltd ("URE") a 100%
subsidiary of FDR PLC, holds the Selta
Project. The Selta Project in the Northern
Territory is located in an area considered highly prospective for
uranium and Rare Earth Element mineralisation along with base and
precious metal mineralisation. Numerous companies are actively
exploring within the region. The Selta project is comprised of
three granted exploration licences and covers a total land area of
almost 1,600km2. The project borders ASX listed Prodigy
Gold and Canadian listed Megawatt Lithium and Battery Metals
Corporation; and is less than 70km northwest of Arafura's Resources
high-grade, world-class Nolans Bore REE deposits
Molopo Farms Complex Project
In November 2022, Power Metal
acquired an additional 58.7% equity stake in private company
Kalahari Key Mineral Exploration Pty Limited ("KKME"), taking the
Company's holding to 87.71%. KKME is a Botswana registered
exploration company with a 100% interest in the
1,723km2 Molopo Farms Complex Project ("MFC").
At the MFC, Power Metal is targeting
a district-scale nickel and platinum group element discovery. On 6
October 2023 the Company announced that its recently completed
geophysical inversions led to the identification of the highest
priority conductor to date at the Project within target area T1-14.
The Company has further advanced plans to drill test the target at
T1-14 with follow up analysis determining up to two areas to
optimally test this conductor.
North Wind Project
The North Wind Lithium project was
originally staked by Power Canada Inc. in November 2022, the
project transferred to ION, both companies are 100% subsidiaries of
Power Metal. The project is targeting a significant lithium
discovery; the Group is currently awaiting assay results from 2023
field exploration.
6.
Trade and other receivables
Group
|
2023
£'000
|
|
2022
£'000
|
Accounts receivable
|
31
|
|
123
|
Other receivables
|
366
|
|
149
|
Prepayments
|
84
|
|
74
|
Trade and other receivables
|
481
|
|
346
|
7.
Share capital
|
Number of
ordinary
shares
|
|
2023
|
|
2022
|
Ordinary shares in issue at 1
October
|
1,614,654,921
|
|
1,254,808,787
|
Issued for cash
|
383,673,949
|
|
137,142,857
|
Issued in settlement for
acquisitions
|
60,093,043
|
|
222,703,277
|
Issued in lieu of expenses
|
21,684,343
|
|
-
|
In
issue at 30 September - fully paid (par value
0.1p)
|
2,080,106,256
|
|
1,614,654,921
|
|
Number of
deferred
shares
|
|
2023
|
|
2022
|
Deferred shares in issue at 1
October
|
3,628,594,957
|
|
3,628,594,957
|
In
issue at 30 September
|
3,628,594,957
|
|
3,628,594,957
|
|
|
|
|
|
| |
|
Ordinary
share
capital
|
|
2023
£'000
|
|
2022
£'000
|
Balance at beginning of
year
|
8,065
|
|
7,705
|
Share issues
|
466
|
|
360
|
Balance at 30 September
|
8,531
|
|
8,065
|
|
Share
Premium
|
|
2023
£'000
|
|
2022
£'000
|
Balance at beginning of
year
|
23,312
|
|
18,437
|
Share issues
|
4,405
|
|
4,999
|
Expenses relating to share
issues
|
(220)
|
|
(124)
|
Balance at 30 September
|
27,497
|
|
23,312
|
All ordinary shares rank equally
with regard to the Company's residual assets.
The holders of ordinary shares are
entitled to receive dividends as declared from time to time and are
entitled to one vote per share at meetings of the
Company.
Both classes of deferred shares
(Deferred and Deferred A), do not entitle the holders thereof to
receive notice of or attend and vote at any general meeting of the
Company or to receive dividends or other distributions or to
participate in any return on capital on a winding up unless the
assets of the Company are in excess of £1,000,000,000,000. The
Company retains the right to purchase the deferred shares from any
shareholder for a consideration of one penny in aggregate for all
that shareholder's deferred shares. As such, the deferred
shares effectively have no value. Share certificates will not
be issued in respect of the deferred shares.
Issue of ordinary shares
In November 2022, the Company
acquired an additional 58.7% interest in Kalahari Key Mineral
Exploration Pty Limited. The consideration of £807,348 was payable
through the issue of 46,134,171 new ordinary shares of 0.1p each in
the Company at a price of 1.75p per new ordinary share and warrants
over 46,134,171 new Ordinary Shares at a 3.5p exercise
price.
In January 2023, the Company
acquired 100% of the Canadian Graphite Project for £37,500.
Consideration was payable through the issue of 2,500,000 Power
Metal new ordinary shares of 0.1p each at an issue price of 1.5p
per share.
In January 2023, the Company raised
£900,000 before expenses through the issue of 64,285,714 new
ordinary shares of 0.1p each ("Financing Shares") at an issue price
of 1.4p per share. Each Financing Share has an attaching warrant to
subscribe for one new ordinary share of 0.1p each in the Company at
an exercise price of 2.0p per share with a 24-month term from 30
January 2023 creating 64,285,714 financing warrants.
In March 2023, the Company issued
11,458,872 ordinary shares at an issue price of 2.25p for
settlement of the drill contract with Mindea Exploration &
Drilling Services (Pty) at the Molopo Farms Complex
Project.
In May 2023, the Company raised
£2.175m before expenses through the issue of 319,388,235 new
ordinary shares of 0.1p each ("Placing Shares") at an issue price
of 0.85p per share. Each Placing Share has an attaching warrant to
subscribe for one new ordinary share of 0.1p each in the Company at
an exercise price of 2.0p per share with a 5-year term expiring 9
May 2028.
In May 2023, the Company received
notice to exercise warrants over 6,250,000 new ordinary shares of
0.1p each at an exercise price of 0.7p per warrant share, raising
an additional £43,750 for the Company.
In July 2023, the Company issued
9,208,951 ordinary shares at an issue price of 0.71p per share in
lieu of fees incurred with advisors. 3,541,904 shares were issued
to SP Angel Corporate Finance LLP, the Company's nominated adviser
and joint broker, in lieu of fees to the value of £25,000. The
remaining 5,667,047 shares were issued to another corporate adviser
in lieu of fees for a total value of £40,000.
In July 2023, the Company negotiated
early completion of its Authier North Lithium Project Earn-In,
acquiring 100% interest in the Project. Consideration of CAD$75,000
(£43,941) was settled through the issue of 6,225,392 new ordinary
shares of 0.1p at an issue price of 0.71p.
8.
Earnings per
share
Basic and diluted loss per share
Basic earnings per share is
calculated by dividing the profit attributable to equity holders of
the Company by the weighted average number of ordinary shares in
issue during the year.
Group
|
2023
|
|
2022
|
Loss attributable to equity holders
of the parent
|
(1,096,881)
|
|
(2,257,872)
|
Weighted average number of ordinary
shares in issue
|
1,842,111,876
|
|
1,457,507,624
|
Basic and diluted loss per ordinary
share (pence)
|
(0.06)
|
|
(0.15)
|
The basic and diluted earnings per
share are the same given the loss for the year, making the
outstanding share options and warrants anti-dilutive.
9.
Trade and other payables
Group
|
2023
£'000
|
|
2022
£'000
|
Trade payables
|
343
|
|
686
|
Other Payables
|
35
|
|
-
|
Other taxation and social
security
|
54
|
|
-
|
Accrued expenses
|
453
|
|
164
|
Trade and other payables
|
885
|
|
850
|
Company
|
2023
£'000
|
|
2022
£'000
|
Trade payables
|
236
|
|
329
|
Other Payables
|
35
|
|
-
|
Other taxation and social
security
|
56
|
|
-
|
Accrued expenses
|
360
|
|
164
|
Payable to group
undertakings
|
-
|
|
24
|
Trade and other payables
|
687
|
|
517
|
|
|
|
|
|
| |
10.
Subsequent
events
On 3 October 2023, the Company
issued 1,293,103 new ordinary shares of 0.1 pence, at a price of
0.725 pence per share ("Fee Shares") to SP Angel Corporate Finance
LLP, the Company's nominated adviser and joint broker, in lieu of
fees incurred to the value of £9,375. A further 2,068,965 Fee
Shares were issued to a professional services provider in lieu of
fees incurred to the value of £15,000.
On 6 November 2023, Power Metal
announced the disposal of its entire holding of 69,500,000 shares
of Kavango Resources Plc ("Kavango"), at a price of 0.8p per share,
raising cash of £556,000 for the Company. Power Metal retained its
60,000,000 warrants to subscribe for new Kavango shares with
30,000,000 warrants at an exercise price of 4.25p and 30,000,000
warrants at an exercise price of 5.5p, both with an expiry date of
8 January 2025. In addition, Power Metal holds a 1% net smelter
return royalty ("NSR") in respect of the project licence footprint
in the Kalahari Copper Belt and Ditau Camp projects previously held
in joint venture with Kavango.
On 16 January 2024, Owain Morton,
Non-Executive Director, stepped down from the board with immediate
effect.
On 31 January 2024, Power Metal
announced the issuance of 130,000,000 new ordinary shares of 0.1
pence each at an issue price of 1.0 pence per ordinary share,
representing a premium of approximately 3.09 per cent. The share
issue resulted in a total raise of £1.3 million.
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it
forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with
the Company's obligations under Article 17 of
MAR.
For
further information please visit https://www.powermetalresources.com/
or
contact:
Power Metal Resources plc
|
|
Sean Wade (Chief Executive
Officer)
|
+44 (0) 7464 609 025
|
|
|
SP Angel Corporate Finance (Nomad
and Joint Broker)
|
|
Ewan Leggat/Caroline Rowe/Harry
Davies-Ball
|
+44 (0) 20 3470 0470
|
|
|
SI Capital Limited (Joint
Broker)
|
|
Nick Emerson
|
+44 (0) 1483 413 500
|
|
|
First Equity Limited (Joint
Broker)
|
|
David Cockbill/Jason
Robertson
|
+44 (0) 20 7330 1883
|
NOTES TO EDITORS
Power Metal Resources plc - Background
Power Metal Resources plc (LON:POW)
is an AIM listed metals exploration company which finances and
manages global resource projects and is seeking large scale metal
discoveries.
The Company has a principal focus on
opportunities offering district scale potential across a global
portfolio including precious, base and strategic metal exploration
in North America, Africa and Australia.
Project interests range from
early-stage greenfield exploration to later-stage prospects
currently subject to drill programmes.
Power Metal will develop projects
internally or through strategic joint ventures until a project
becomes ready for disposal through outright sale or separate
listing on a recognised stock exchange thereby crystallising the
value generated from our internal exploration and development
work.
Value generated through disposals
will be deployed internally to drive the Company's growth or may be
returned to shareholders through share buy backs, dividends or
in-specie distributions of assets.