TIDMXTR
RNS Number : 3555B
Xtract Resources plc
30 September 2022
For immediate release
30 September 2022
Xtract Resources Plc
("Xtract" or "the Company")
Unaudited Interim Results for the six months ended 30 June
2022
Xtract Resources Plc (AIM: XTR), the gold producer, exploration
and development company with projects in Australia, Mozambique and
Zambia, announces its unaudited interim results for the six months
ended 30 June 2022 ("Period").
Highlights
Financial
-- Revenue from gold sales of GBP0.97m (H1 2021: GBP0.16m)
-- Net loss of GBP0.03m (H1 2021: GBP2.20m)
-- Administration & operating expenses GBP1.33m (H1 2021:
GBP2.19m (including a share-based payment charge of GBP1.47m))
-- Cash of GBP1.24m (FY 2021: GBP8.08m)
-- Net assets of GBP21.25m (FY 2021: GBP20.66m)
-- Total alluvial and hard rock mining contractor gold
production of 121.8kg (equivalent to 3,916 ounces) (H1 2021: 22.1kg
(equivalent to 711 ounces))
-- Total of 23.9kg (equivalent to 769 ounces) attributable to
the Company's Mozambican operating subsidiary, Explorator (H1 2021:
6.2kg (equivalent to 199 ounces))
Operational
-- The completed Phase Two drilling programme at the Bushranger
porphyry copper-gold project succeeded in adding significant
extensions to the Racecourse prospect.
-- Testing of a geophysical anomaly led to the discovery of a
totally new porphyry intrusion at Ascot prospect, approximately
1.5km to the south of the Racecourse Mineral Resource.
-- The Ascot discovery hole BRDD-21-035 returned substantial
intervals of copper and gold mineralisation over 164m grading 0.35%
CuEq from 552m, including 64m at 0.58% CuEq from 552m. Follow up
drilling further defined and extended the Ascot discovery.
-- The Company will now utilise all the Phase Two drilling data
to update the Racecourse prospect mineral resource and define a
maiden mineral resource for the Ascot prospect. The open pit mining
study for the Racecourse prospect will also be updated
-- At the Manica gold project in Mozambique all construction and
installation work at the Fair Bride mine was completed and the
processing plant has entered into commissioning.
-- Clearing and pre stripping were carried out and ore has been
stockpiled and hauled to the plant site, with the introduction of
low-grade ore to commission all parts of the processing
circuit.
Operational Overview
During the period the Company continued with its ongoing
assessment of the Bushranger copper-gold project located within the
Lachlan Fold Belt district of New South Wales, the foremost
porphyry copper-gold belt in Australia.
A Phase Two drilling programme was commenced on the Bushranger
Project in July 2021, with the initial goal of extending, and
better defining, the Racecourse Mineral Resource, which is
currently defined as 71Mt @ 0.44% Cu and 0.064g/t Au, at a 0.3% Cu
cut-off. The Phase Two drilling programme was expanded in scope
throughout the reporting period to include the testing of Induced
Polarisation (IP) MIMDAS ground geophysical anomalies, outside of
the current limits of the Racecourse Mineral Resource. Testing of a
MIMDAS geophysical anomaly led to the discovery of the Ascot
prospect, approximately 1.5km to the south of the Racecourse
Mineral Resource, with drill hole BRDD-21-035 returning substantial
intervals of copper and gold mineralisation, with a best intercept
of 164m at 0.35% CuEq from 552m, which includes 64m at 0.58% CuEq
from 552m. Follow up drilling during the Phase Two drilling
programme further defined and extended the Ascot discovery.
Immediately following the reporting period, the Bushranger
Project Phase two drilling programme was concluded. A total of 49
diamond drill holes were completed at the Racecourse and Ascot
Prospects for 33,354.80m of drilling, during the period 15 July
2021 until 9 July 2022. The Phase Two drilling programme was highly
successful with significant extensions to the Racecourse prospect
porphyry copper-gold mineralisation confirmed and the discovery of
a totally new porphyry copper-gold intrusion at the Ascot
Prospect.
The Company will now utilise all the Phase Two drilling data to
update the Racecourse prospect mineral resource and define a maiden
mineral resource for the Ascot prospect. The open pit mining study
for the Racecourse prospect, which was completed in April 2021,
will also be updated using the new Racecourse mineral resource when
it is completed.
The results from the Company's alluvial and hard rock operations
were satisfactory, despite a challenging few months of difficult
operating conditions with an aggressive rain and cyclone
season.
All construction and installation work relating to the Fair
Bride hard rock project in Mozambique was completed. At the end
June 2022, production at Fair Bride started with the introduction
of low-grade ore to commission all parts of the processing
circuit.
Summary of Company Projects
Australia
Bushranger Project
During the reporting period the Phase Two drilling programme on
the Bushranger Project in central New South Wales continued at a
rapid pace. The objectives of the Phase 2 drilling programme at
Racecourse and Ascot Prospects were as follows:
1. Extend to the northwest and southeast the currently defined
Racecourse prospect Inferred Mineral Resource of 71Mt @ 0.44% Cu
and 0.064g/t Au, at a 0.3% Cu cut-off
2. Test a series of IP resistivity low anomalies to determine if
the resistivity lows relate to areas of increased intensity of
copper mineralisation at the top of the porphyry system in the
"crown" position
3. Test the continuity of copper mineralisation on the eastern
side of the Central Porphyry Intrusion, with the objective of
defining a new Inferred Mineral Resource to complement the existing
Racecourse Inferred Mineral Resource which occurs predominantly on
the western side of the Central Porphyry Intrusion
4. Determine the extent and grade of the newly discovered copper
mineralisation at the Ascot Prospect
The Phase Two drilling programme at the Racecourse Prospect
commenced on 15 July 2021 and was concluded, following the
conclusion of the reporting period, on 9 July 2022. The overall
Phase Two drilling programme comprised 49 diamond drill holes
(BRDD-21-007 to BRDD-22-055), completed at the Racecourse and Ascot
Prospect for 33,354.80m of drilling.
Phase Two drilling into the Racecourse prosect continued to
intersect very broad intervals of moderate strength copper-gold
mineralisation grading in the range 0.15 - 0.61% CuEq. On 9
December 2021, the company announced the discovery of a new
porphyry system approximately 1.5km to the south-east of the
Racecourse Inferred Mineral Resource. Drill holes BRDD-21-033 and
BRDD-21-035 intersected porphyry style alteration and trace to
moderate strength copper mineralisation. The new prospect was
called "Ascot" and follow up drilling was completed with the
objective of defining the extents of the Ascot discovery. Drill
hole BRDD-21-035 returned substantial intervals of copper and gold
mineralisation with a best intercept of 164m at 0.35% CuEq from
552m, including 64m at 0.58% CuEq from 552m. The initial assay
results from the Ascot prospect indicated the potential for
significant gold enhancement associated with the copper
mineralisation and this result encouraged follow up drilling at
Ascot. Holes BRDD-21-025, BRDD-21-031, BRDD-21-033, BRDD-21-038,
BRDD-22-039 and BRDD-22-044 were drilled as follow up holes into
the Ascot prospect. The best result of the follow up drilling at
Ascot was returned in drill hole BRDD-21-038 which returned 104m @
0.24% CuEq from 79m and drill hole BRDD-22-039 which returned 32m @
0.92g/t Au from 510m. The drill results from the Ascot prospect
indicate that this porphyry system does contain more gold zones
than the Racecourse deposit for the north. The results at Ascot
display similar characteristics to the discovery of the deeper,
gold-rich Ridgeway deposit, which is a part of the Cadia-Ridgeway
group of porphyry deposits discovered by Newcrest Mining. Ridgeway
is a near vertical intrusive complex with an indicated resource of
110Mt at 0.57 g/t Au and 0.3% Cu and is currently under development
by Newcrest as an underground mining operation.
Drilling and assay data from the Ascot prospect will be used to
complete a maiden mineral resource estimation for the Ascot
prospect, which will be finalised prior to the end of 2022.
To assist in the determination as to whether the Ascot and
Racecourse prospects, form one continuous mineralised porphyry
copper system, an extension MIMDAS geophysical survey was completed
from south of the Ascot Prospect through to the existing MIMDAS
survey (from May 2021) covering the Racecourse prospect. The
results of this MIMDAS survey guided the follow up drilling
completed at the Ascot prospect and drilling between the Racecourse
and Ascot prospects. Drilling between the two prospects continued
to intersect copper-gold mineralisation and it appears the
Racecourse and Ascot prospects are centres of more intense
copper-gold mineralisation within one larger system consisting of
multiple porphyry intrusions, as commonly occurs within the Lachlan
Fold Belt.
Drilling at the Racecourse prospect was successful in extending
the known copper-gold mineralisation to the north-west, the
south-east and at depth. During the reporting period seven drill
holes (BRDD-22-041, BRDD-22-042, BRDD-22-043, BRDD-22-047,
BRDD-22-048, BRDD-22-053, BRDD-22-054) for 4,968.9m, were completed
at the Racecourse prospect. Assay data was also received for drill
holes completed at the Racecourse prospect during the previous
reporting period. The drilling and assay data gave better
definition of the "crown position", at the top of the Racecourse
porphyry intrusion, which appears to contain the highest grades of
copper and gold at Racecourse. Drill Hole BRDD-21-018 returned an
intersection of 170m of 0.22% CuEq from 520m depth, which includes
a higher-grade interval of 12m at 0.41% CuEq from 648m downhole in
the "crown position". The results of drill hole BRDD-21-019 include
a wide 202m interval of copper mineralisation grading at 0.27% CuEq
from 276m depth, which includes a higher-grade intercept of 18m at
0.67% CuEq from 312m depth, also in the "crown position" atop the
Racecourse porphyry intrusion. Hole BRDD-21-021 repeated the
success of hole BRD-21-008, with an overall intercept of 280m at
0.36% CuEq from 205m, including a higher-grade interval of 92m at
0.53% CuEq from 205m downhole depth.
The Phase Two drilling at the Racecourse prospect was successful
in extending the known copper-gold mineralisation to the
north-west, the south-east and at significant depth. Furthermore,
the Phase Two drilling data has substantially better defined the
higher grade "crown position" at Racecourse and provided a better
understanding of the distribution of gold within the Racecourse
deposit. The company will now utilise all the Phase Two drilling
data to update the Racecourse prospect mineral resource and
subsequently will update the open pit mining study for the
Racecourse prospect which was previously completed in April 2021.
The updated mining study is planned for completion before the end
of 2022.
Two drill holes, for 804.4m, were completed at the Footrot
Prospect, approximately 5 kilometres to the south of the
Racecourse, to test a combined soil geochemical and MIMDAS anomaly.
The results from these two holes will be available during the next
reporting period.
Mozambique
Mozambique is recognised as a stable mining jurisdiction within
a favourable political and legal regime. The Manica Gold Project is
situated in the Odzi-Mutare-Manica Greenstone belt, with an
estimated 2 million ounces of gold previously mined in the
area.
The Fair Bride Project is an open pit and underground project
with a combined SAMREC compliant resource of 1.262 million ounces
(including 782k ounces Measured and Indicated). In 2019, the
Company was given the opportunity to move the Fair Bride Project
forward, from development stage to production through a
collaboration agreement with Mutapa Mining and Processing LDA ,
thereby mitigating any execution risk to Xtract.
During the reporting period, all construction and installation
work was at Fair Bride was completed, including 6 CIL tanks,
thickener, elution circuit, gold room, reagent storage and
laboratory. Rectification works were completed on the original
crushing and milling circuits and the plant has entered into
commissioning.
All clearing and pre stripping were completed and ore has been
stockpiled and hauled to the plant site, along the completed new
haulage road. At the end of June 2022, Fair Bride production
started with the introduction of low-grade ore to commission all
parts of the processing circuit.
Zambia
Eureka Project
Copper mineralisation at Eureka occurs within sedimentary rocks
along a north-west oriented structural trend. A shallow historic
open pit mine was developed by a local operator. Previously
reported drilling by Xtract confirmed continuity of the shallow
mineralised zone over about 300m of strike, with pockets of
exceptionally high copper grades in a partially oxidised supergene
zone. A second, possible stratabound mineral style may also
represent a target of interest.
No further exploration was undertaken at Eureka during the
period pending consideration of options for possible future
development.
Financial
During the Period, administration expenses for the Group
amounted to GBP1.33m (H1 2021 - GBP2.19m). Included within
administration expenses is an amount of GBPNil (H1 2021- GBP1.47m)
in relation to a share-based payment charge in relation to the
grant of 28.4 million options to directors and employees in
February 2021. Non-operating income for the period amounted to
GBP0.49m (H1 2021- Nil) and comprised primarily of fees invoiced
within the group to third parties.
Enquiries :
Xtract Resources Colin Bird, Executive +44 (0)20 3416
Plc Chairman 6471
Beaumont Cornish
(Nominated Adviser Michael Cornish
and Felicity Geidt +44 (0)20 7628
Joint Broker) Email: corpfin@b-cornish.co.uk 3369
Novum Securities
Limited +44 (0)207 399
(Joint Broker) Colin Rowbury/Jon Belliss 9427
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 as it forms part of
UK Domestic Law by virtue of the European Union (Withdrawal) Act
2018 ("UK MAR"). The person who arranged for the release of this
announcement on behalf of the Company was Joel Silberstein,
Director.
Further details are available from the Company's website which
details the company's project portfolio as well as a copy of this
announcement: www.xtractresources.com
Xtract Resources PLC
Consolidated Income Statement
For the six month period ended 30 June 2022
Six months ended Year ended
31 December
30 June 2022 30 June 2021
Unaudited 2021 Unaudited Audited
Notes GBP'000 GBP'000 GBP'000
Continuing operations
Revenue from Gold sales 972 153 692
Other operating income 11 - 189
Other non-operating income 494 - -
Administrative and operating
expenses (1,332) (2,191) (3,311)
------------ ------------------------ -----------
Direct Operating (715) (228) (569)
Other Operating (82) - (85)
Administration (535) (1,963) (2,657)
------------ ------------------------ -----------
Project expenses (214) (94) (432)
Operating loss (69) (2,132) (2,862)
Other gains and losses - - -
Finance (cost)/income 93 (73) (194)
------------ ------------------------ -----------
Profit/(loss) before tax 24 (2,205) (3,056)
Taxation (52) - (76)
------------ ------------------------ -----------
Profit/(loss) for the period
from continuing operations 3 (28) (2,205) (3,132)
Profit/(loss) for the period 6 (28) (2,205) (3,132)
------------ ------------------------ -----------
Attributable to:
Equity holders of the parent (28) (2,205) (3,132)
Net (loss)/profit per share
Basic (pence) 6 (0.00) (0.00) (0.40)
============ ======================== ===========
Diluted (pence) 6 (0.00) (0.40) (0.40)
============ ======================== ===========
Xtract Resources PLC
Consolidated statement of comprehensive income
For the six month period ended 30 June 2022
Six months ended Year ended
30 June 31 December
2022 30 June 2021 2021
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Profit /(Loss) for the period (28) (2,205) (3,132)
---------- ------------ --------------
Other comprehensive income
Items that will not be reclassified
subsequently to profit and loss
Exchange differences on translation
of foreign operations 550 112 242
Other comprehensive income/(loss)
for the period 550 112 242
Total comprehensive (loss)/income
for the period 522 (2,093) (2,890)
Attributable to:
Equity holders of the parent 522 (2,093) (2,890)
522 (2,093) (2,890)
========== ============ ==============
Xtract Resources PLC
Consolidated statement of changes in equity
As at 30 June 2022
Share Share Warrant Share-based Available-for-sale Foreign Accumulated Total
Capital premium reserve payments investment currency losses Equity
GBP'000 account GBP'000 reserve reserve translation GBP'000 GBP'000
GBP'000 GBP'000 GBP'000 reserve
GBP'000
-------- -------------- ------------ -------------- --------------------- -------------- -------------- ----------
Balance at 31
December
2020 4,928 61,951 76 436 - 66 (55,530) 11,927
-------- ------- --------------- ------------ ----------------- ----------------- ----------------- -----------
Loss for the
period - - - - - - (2,205) (2,205)
Foreign
currency
translation
difference - - - - - 112 - 112
Issue of
Shares 45 10,104 - - - - - 10,149
Share issue - - - - - - - -
costs
Option
exercised - 19 - (19) - - - -
Issue of
share
options - - - 1,473 - - - 1,473
Issue of
warrants - (456) 456 - - - - -
Exercise of
warrants - 10 (10) - - - - -
-------- ------- --------------- ------------ ----------------- ----------------- ----------------- -----------
Balance at 30
June 2021 4,973 71,628 522 1,890 - 178 (57,735) 21,456
-------- ------- --------------- ------------ ----------------- ----------------- ----------------- -----------
Loss for the
period - - - - - - (3,132) (3,132)
Foreign
currency
translation
differences - - - - - 242 - 242
Issue of
Shares 45 10,769 - - - - - 10,814
Share issue
costs - (664) - - - - - (664)
Issue of
share
options - - - 1,473 - - - 1,473
Expiry of
share
options - - - (16) - - 16 -
Exercise of
share
options - 19 - (19) - - - -
Issue of
Warrants - (456) 456 - - - - -
Exercise of
warrants - 65 (65) - - - - -
Balance at 31
December
2021 4,973 71,684 467 1,874 - 308 (58,646) 20,660
-------- ------- --------------- ------------ ----------------- ----------------- ----------------- -----------
Loss for the
period - - - - - - (28) (28)
Foreign
currency
translation
difference - - - - - 550 - 550
Issue of
Shares 1 67 - - - - - 68
Exercise of
warrants - 35 (35) - - - - -
Balance at 30
June 2022 4,974 71,786 432 1,874 - 858 (58,674) 21,250
======== ======= =============== ============ ================= ================= ================= ===========
Xtract Resources PLC
Consolidated Statement of Financial Position
As at 30 June 2022
30 June 31 December
30 June 2021 2021 Audited
2022 Unaudited Unaudited GBP'000
Notes GBP'000 GBP'000
Non-current assets
Intangible Assets 7 19,760 13,622 16,752
Property, plant & equipment 8 45 27 25
Other financial assets - - -
19,805 13,649 16,777
Current assets
Trade and other receivables 1,636 185 664
Inventories 14 9 177
Cash and cash equivalents 1,239 8,084 5,389
2,889 8,278 6,230
Total assets 22,694 21,927 23,007
--------------- ---------- -------------
Current liabilities
Trade and other payables 1,350 453 2,226
Current tax payable 94 18 121
Other payables - - -
1,444 471 2,347
Non-current liabilities
Other payables - - -
- - -
Total liabilities 1,444 471 2,347
Net current assets/(liabilities) 1,445 7,807 3,883
Net assets 21,250 21,456 20,660
=============== ========== =============
Equity
Share capital 9 4,974 4,973 4,973
Share premium account 71,786 71,628 71,684
Warrant reserve 432 522 467
Share-based payments reserve 1,874 1,890 1,874
Fair Value reserve - - -
Foreign currency translation
reserve 858 178 308
Accumulated losses (58,674) (57,735) (58,646)
Equity attributable to equity
holders of the parent 21,250 21,456 20,660
Total equity 21,250 21,456 20,660
=============== ========== =============
Xtract Resources PLC
Consolidated Statement of Cash Flows
For the six month period ended 30 June 2022
6 months
period ended 6 months Year ended
30 June period ended 31 December
2022 30 June 2021 2021
Unaudited Unaudited Audited
Notes GBP'000 GBP'000 GBP'000
Net cash used in operating activities 11 (1,732) (1,455) (767)
------------- ------------- -------------
Investing activities
Acquisition of subsidiary undertaking - - -
Acquisition of intangible fixed
assets (2,555) (1,524) (5,009)
Acquisition of tangible fixed assets (26) (5) (13)
Net cash from/(used in) investing
activities (2,581) (1,529) (5,022)
-------------
Financing activities
Proceeds on issue of shares 68 10,149 10,149
Net cash from financing activities 68 10,149 10,149
-------------
Net increase/(decrease) in cash
and cash equivalents (4,245) 7,165 4,360
Cash and cash equivalents at beginning
of period 5,389 919 919
Effect of foreign exchange rate
changes 95 - 110
-------------
Cash and cash equivalents at end
of period 1,239 8,084 5,389
------------- ------------- -------------
Xtract Resources PLC
Notes to the interim financial information
For the six month period ended 30 June 2022
1. General information
Xtract Resources PLC ("Xtract") is a company incorporated in
England and Wales under the Companies Act 2006. The Company's
registered address is 1(st) Floor, 7/8 Kendrick Mews, London, SW7
3HG. The Company's ordinary shares are traded on the AIM market of
the London Stock Exchange. The Company invests and engages in the
management, financing and development of early-stage resource
assets.
2. Accounting policies
Basis of preparation
Xtract prepares its annual financial statements in accordance
with UK-adopted international accounting standards and in
conformity with the Companies Act 2006.
The consolidated interim financial information for the period
ended 30 June 2022 presented herein has been neither audited nor
reviewed. The information for the period ended 31 December 2021
does not constitute statutory accounts as defined in section 434 of
the Companies Act 2006 but has been derived from those accounts.
The auditor's report on those accounts was not qualified and did
not contain statements under section 498 (2) or (3) of the
Companies Act 2006. As permitted, the Group has chosen not to adopt
IAS 34 'Interim Financial Reporting'.
The interim financial information is presented in pound sterling
and all values are rounded to the nearest thousand pounds (GBP'000)
unless otherwise stated.
The interim consolidated financial information of the Group for
the six months ended 30 June 2022 were authorised for issue by the
Directors on 29 September 2022.
Going concern
As at 30 June 2022 the Group held cash balances of GBP1,239K. A
small operating loss has been reported for the Group, however, as
at the date of the release of the consolidated financial
information, the Group's assets have been and continue to generate
revenues. The Group has continued with its exploration activities
in Australia and recently completed the Phase Two drilling
programme at the Racecourse Prospect.
The Directors have assessed the working capital requirements for
the forthcoming twelve months and have undertaken the following
assessment.
Management have reviewed the cash flow projections for the
forthcoming twelve months, based on the current operations in
Mozambique, Australia as well as the corporate overhead. The
alluvial operations continue to generate modest revenues and as
with alluvial operations the presence of gold in alluvial deposits
is unpredictable and therefore operational results will vary
month-to-month. The Group expects production at Fair Bride to
increase during the coming months with the Group due to receive 23%
share of net profit after tax.
Based on the assumption that Fair Bride operates within its
targeted parameters and no new business is consummated, the
Directors do not anticipate the need for funds to be raised in the
twelve-month period from the date of authorising the consolidated
information.
As is common with junior mining companies, the Company in the
past has raised finance from shareholders for its activities, in
discrete tranches to finance its activities for limited periods
only and further funding would be required from time to time to
finance those activities.
The Directors therefore continue to adopt the going concern
basis of accounting in preparing the consolidated financial
information and therefore the consolidated financial information
does not include any adjustments relating to the recoverability and
classification of assets and liabilities that may be necessary if
the going concern basis of preparation of the consolidated
financial information is not appropriate.
On this basis the Board believes that it is appropriate to
prepare the consolidated financial information on the going concern
basis.
Changes in accounting policy
The accounting policies applied are consistent with those
adopted and disclosed in the Group Consolidated financial
statements for the year ended 31 December 2021, except for the
changes arising from the adoption of new accounting pronouncements
detailed below.
There are no amendments or interpretations to accounting
standards that would have a material impact on the financial
statements.
3. Business segments
Segmental information
The divisions on which the Group reports its primary segment
information are reported to its Executive Chairman, who is the
Chief Operating Decision maker of the Group. The Executive Chairman
and the Chief Operating Officer are responsible for allocating
resources to the segments and assessing their performance.
Principal activities are as follows:
-- Operating alluvial gold & hard rock mining segment -
Mozambique
-- Mine Development - Mozambique
-- Exploration
-- Investment and other
Segment results
6 months ended Mine Investment Alluvial Gold
30 June 2022 Development Exploration And Other Mining Production
(Continuing) (Continuing) (Continuing) (Continuing) Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Segment revenue
Sale of gold bars - - - 972 972
Less: Cost of - -
sales - - -
---------------- --------------- --------------- -------------------- ---------------
Segment Gross
profit - - - 972 972
---------------- --------------- --------------- -------------------- ---------------
Other operating
income - - - 11 11
Non-operating
income - - 494 - 494
Administrative
and
operating
expenses - (145) (825) (362) (1,332)
Project costs - - (214) - (214)
---------------- --------------- --------------- -------------------- ---------------
Segment result - (145) (545) 621 (69)
---------------- --------------- --------------- -------------------- ---------------
Other gain and - - - -
losses -
Finance costs - - 89 4 93
---------------- --------------- --------------- -------------------- ---------------
(Loss)/profit
before
tax - (145) (456) 625 24
Tax - - - (52) (52)
---------------- --------------- --------------- -------------------- ---------------
(Loss)/profit for
the period - (145) (456) 573 (28)
================ =============== =============== ==================== ===============
Investment Alluvial Gold
Mine Development Exploration and Other Mining Production
(Continuing) (Continuing) (Continuing) (Continuing) Total
6 months ended
30 June 2021 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Segment revenue
Sale of gold bars - - - 153 153
Less: Cost of sales - - - - -
------------------ --------------- -------------- -------------------- ----------
Segment Gross profit - - - 153 153
------------------ --------------- -------------- -------------------- ----------
Administrative and
operating expenses - (39) (1,877) (275) (2,191)
Project Costs - - (94) - (94)
------------------ --------------- -------------- -------------------- ----------
Segment result - (39) (1,971) (122) (2,132)
Other gain and losses - - - - -
Finance costs - - (69) (4) (73)
------------------ --------------- -------------- --------------------
(Loss)/profit before
tax - - (2,040) (126) (2,205)
Tax - - - - -
------------------ --------------- -------------- -------------------- ----------
(Loss)/Profit for
the period - (39) (2,040) (126) (2,205)
================== =============== ============== ==================== ==========
Alluvial
Investment Gold Mining
Mine Development Exploration and Other Production
(Continuing) (Continuing) (Continuing) (Continuing) Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Segment revenue
Sale of gold bars - - - 692 692
Less: Cost of - -
sales - - -
----------------- --------------- -------------- -------------- ----------
Segment Gross
profit - - - 692 692
Other operating
income - - - 189 189
Administrative
and operating expenses (71) - (2,671) (569) (3,311)
Project Costs (13) - (419) - (432)
----------------- --------------- -------------- -------------- ----------
Segment result (84) - (3,090) 312 (2,862)
----------------- --------------- -------------- -------------- ----------
Other gains and - - - - -
losses
Finance income
/ (costs) (1) - (106) (87) (194)
(Loss)/Profit
before tax (85) - (3,196) 225 (3,056)
Tax - - - (76) (76)
----------------- --------------- -------------- -------------- ----------
(Loss)/Profit
for the period (85) - (3,196) 149 (3,132)
================= =============== ============== ============== ==========
Year ended 31 December 2021
31 December
Balance Sheet 30 June 2022 30 June 2021 2021
GBP'000 GBP'000 GBP'000
Total Assets
Gold production 880 125 925
Exploration 9,728 3,467 6,552
Mining Development 10,437 10,276 10,298
Investment & other 1,649 8,058 5,232
-------------- -------------- -------------
Total segment assets 22,694 21,927 23,007
============== ============== =============
Liabilities
Gold production (371) (243) (659)
Exploration (459) - (349)
Mining Development - (3) -
Investment & other (614) (225) (1,339)
Total segment liabilities (1,444) (471) (2,347)
============== ============== =============
The accounting policies of the reportable segments are the same
as the Group's accounting policies which are described in the
Group's latest annual financial statements. Segment results
represent the profit earned by each segment without allocation of
the share of profits of associates, central administration costs
including directors' salaries, investment revenue and finance
costs, and income tax expense. This is the measure reported to the
Group's Board for the purposes of resource allocation and
assessment of segment performance.
4. Tax
At 30 June 2022, the Group has no deferred tax assets or
liabilities and an income tax of GBP52k charge for the period.
5. Revenue
An analysis of the Group's revenue is as follows:
Six months Year ended
ended
30 June 31 December
2022 30 June 2021 2021
GBP'000 GBP'000 GBP'000
Revenue from gold sales 972 153 692
972 153 692
---------------- ------------------------- -----------
6. Loss per share
The calculation of the basic and diluted loss per share is based
on the following data:
Six months ended Year ended
30 June 31 December
2022 30 June 2021 2021
Losses GBP'000 GBP'000 GBP'000
Losses for the purposes of basic
earnings per share being:
Net loss from continuing operation
attributable to equity holders of
the parent (28) (2,205) (3,132)
(28) (2,205) (3,132)
-------------------------------- ----------------------------------- -------------
Number of shares
Weighted average number of ordinary
and diluted shares for the purposes
of basic earnings per share 847,000,046 581,422,831 805,203,295
(Loss)/profit per ordinary share
basic and diluted (pence) (0.00) (0.40) (0.40)
In accordance with IAS 33, the share options and warrants do not
have a dilutive impact on earnings per share, which are set out in
the consolidated income statement. Details of the shares issued
during the period as shown in Note 9 of the Financial
Statements.
7. Intangible assets
Development expenditure
& Mineral exploration Total
GBP'000 GBP'000
===================== ============================== =======
As at 1 January 2022 16,752 16,752
===================== ============================== =======
Additions - at fair - -
value (Manica)
Additions - at cost
(Manica) 34 34
Foreign exchange 139 139
===================== ============================== =======
Additions - at fair - -
value (Bushranger)
===================== ============================== =======
Additions - at cost
(Bushranger) 2,337 2,337
===================== ============================== =======
Foreign exchange 314 314
===================== ============================== =======
Additions - at cost
(Eureka) 184 184
===================== ============================== =======
As at 30 June 2022 19,760 19,760
===================== ============================== =======
Amortisation
As at 1 January 2022 - -
Charge for the year - -
As at 30 June 2022 - -
===================== ============================== =======
Net Book value at
1 January 2022 16,752 16,752
===================== ============================== =======
Net book value at
30 June 2022 19,760 19,760
===================== ============================== =======
Mozambique
In March 2016, The Company acquired the Manica licence 3990C
("Manica Project") from Auroch Minerals NL. The Manica Project is
situated in central Mozambique in the Beira Corridor. At the time
of acquisition, the project had a JORC compliant resource of 900koz
(9.5Mt@ 3.01g/t) in situ, which has increased to 1.257moz (17.3Mt @
2.2g/t) following an independent technical report completed by
Minxcon (Pty) Ltd in May 2016.
Australia
In November 2020, the Company acquired the Bushranger
copper-gold project ("Bushranger Project") which comprises of four
exploration licences totaling 501km2, located in eastern central
New South Wales, Australia. The Bushranger Project hosts the
Racecourse deposit, a JORC (2012) compliant inferred resource
estimated at 71Mt @ 0.44% Cu and 0.064g/t Au using a 0.3% Cu
cut-off.
Zambia
The Eureka copper-gold property with the small-scale mining
licence number 22134-HQ-SML comprising approximately 345 hectares
is accessed by a 100km dirt road from Kabwe, west of the Zambian
Copperbelt district. The licence application was submitted in
August 2017 and has been validated and the licence when issued will
be for period of 10 years with no minimum spend.
As the 31 December 2021, the Company impaired GBP362K of costs
that had been incurred to date on the Kalengwa project.
Cost or fair value on Mining plant Land & Buildings Furniture Total
acquisition of subsidiary & equipment & Fittings
GBP'000 GBP'000 GBP'000 GBP'000
At 1 January 2022 36 - - 36
Additions - at cost 26 - - 26
Foreign exchange 2 - - 2
-------------- ------------------ ------------- ---------
At 30 June 2022 64 - - 64
-------------- ------------------ ------------- ---------
Depreciation
At 1 January 2022 (11) - - (11)
Charge for the period (8) - - (8)
-------------- ------------------ ------------- ---------
At 30 June 2022 (19) - - (19)
-------------- ------------------ ------------- ---------
Net book value
At 30 June 2022 45 - - 45
-------------- ------------------ ------------- ---------
At 1 January 2022 25 - - 25
-------------- ------------------ ------------- ---------
8. Property, plant and equipment
9. Share capital
As at As at As at
30 June 30 June 31 December
2022 Number 2021 2021
Number Number
Deferred shares of 0.09p
each
As at 1 January 5,338,221,169 5,338,221,169 5,338,221,169
Issued during the period - - -
-------------- -------------- --------------
5,338,221,169 5,338,221,169 5,338,221,169
============== ============== ==============
Ordinary shares of 0.02p
each
As at 1 January 845,143,693 620,465,144 620,465,144
Issued during the period 5,249,998 224,678,549 224,678,549
-------------- -------------- --------------
Outstanding as at 30
June 850,393,691 845,143,693 845,143,693
============== ============== ==============
The following Ordinary Shares of 0.02p were issued during the
period:
- Issued - 28 April 2022-4,416,665 at 1.20p per share
- Issued - 28 April 2022- 833,333 at 1.85p per share
The following warrants were exercised during the year:
- Issued 23 August 2019- 3,333,332 exercisable at 1.20p per share
- Issued 30 September 2020- 1,083,834 exercisable at 1.20p per share
- Issued 30 September 2020- 833,332 exercisable at 1.85p per share
10. Cash flows from operating activities
Six month Six month Year ended
period ended period ended 31 December
30 June 2022 30 June 2021 2021
GBP'000 GBP'000 GBP'000
Profit/(loss) for the period 24 (2,205) (3,056)
Adjustments for:
Continuing Operations
Depreciation of property, plant
and equipment 8 - 11
Amortisation of intangible assets - - -
Net Finance costs (71) 72 214
Impairment of intangible assets - - 362
Interest income (23) - (20)
Other (gains) /losses - - -
Share-based payments expense - 1,473 1,473
-------------
Operating cash flows before
movements in working capital (62) (660) (1,016)
Decrease/(Increase) in inventories 162 (1) (169)
(Increase)/decrease in receivables (972) (34) (516)
(Decrease)/increase in payables (876) (602) 1,176
-------------
Cash used in operations (1,748) (1,297) (525)
Net finance costs 94 (72) (194)
Tax (paid) (78) ( 86) (48)
Foreign currency exchange differences - - -
Net cash used in operating activities (1,732) (1,455) (767)
-------------- ------------- -------------
11. Related party transactions
There have been no changes to related party arrangements or
transactions as reported in the 2021 Annual Report.
Transactions between Group companies, which are related parties,
have been eliminated on consolidation and are therefore not
disclosed. The only other transactions which fall to be treated as
related party transactions are those relating to the remuneration
of key management personnel, which are not disclosed in the Half
Yearly Report, and which will be disclosed in the Group's next
Annual Report.
S
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IR GCGDCDSXDGDG
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