Chesterfield Resources PLC / EPIC: CHF / Market: LSE / Sector: Mining

31 August 2022

CHESTERFIELD RESOURCES PLC

("Chesterfield" or the "Company")

Interim Results

Chesterfield Resources PLC, the LSE listed mineral exploration company with projects in Cyprus and Canada, is pleased to announce its interim results for the six months ended 30 June 2022.

Chairman's review of year to date

During the first half of 2022 we made steady progress increasing the shareholder value of both our Cyprus and Canadian assets.

In Cyprus we followed up on the strong results from the Westline target area announced in December with a further set of positive assay results released in announced in February; assay results which confirmed a 12km polymetallic gold-rich geological trend ("The Westline Trend") that links target areas Orchard, Evlim and Evlim South and Westline.  This area has been the focus of our work during 2022. Work during 2022 has consisted of further field work and targeting for future drilling in the area. Chesterfield maintains a strong physical presence in Cyprus with two geologists in place on the island for most of the year.

In Canada, we started the year with positive results from our first field study at Adeline, which included some high-grade copper rock chip samples collected, a comprehensive desktop review of the Adeline historical data set to be used in the identification of future drill targets. In March we published a NI-43-101 report on the Adeline project, which will be essential in any future effort to attract interest for the project in Canada. Efforts to raise funds for Adeline through a Canadian listing and share issue there were abandoned due to poor market conditions in August in favour of an alternative strategy of seeking project level funding instead. Management intend to complete a process that would introduce third party financial and technical support during 2022.

We have focussed heavily upon funding the business during 2022, commencing with a £700,000 equity raise in February. The Board and Management are comfortable with our immediate cash position but mindful of the difficult capital market conditions and have thus successfully instituted a programme to cut ongoing running and Board costs by approximately 50%. In light of the difficult market conditions, Management and Board are mindful to avoid any unnecessarily dilutive financing in the near future.

Financials

As is to be expected with an exploration company, for the six-month period ended 30 June 2022 the Group is reporting a pre-tax loss of £491,607 (six months ended 30 June 2021: loss of £433,538). The Group's net cash balance as at 30 June 2022 was £663,226 (30 June 2021: £1,504,973).

Responsibility Statement

We confirm that to the best of our knowledge: 

·      the interim financial statements have been prepared in accordance with International Accounting Standards 34, Interim Financial Reporting, as adopted by the EU;

·      give a true and fair view of the assets, liabilities, financial position and loss of the Company;

·      the Interim report includes a fair review of the information required by DTR 4.2.7R of the Disclosure and Transparency Rules, being an indication of important events that have occurred during the first six months of the financial year and their impact on the set of interim financial statements; and a description of the principal risks and uncertainties for the remaining six months of the year; and

·      The Interim report includes a fair review of the information required by DTR 4.2.8R of the Disclosure and Transparency Rules, being the information required on related party transactions.

The interim report was approved by the Board of Directors and the above responsibility statement was signed on its behalf by:

Paul Ensor

Executive Chairman

31 August 2022

Market Abuse Regulation (MAR) Disclosure

Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.

 For further information please visit www.chesterfieldresourcesplc.com or contact:

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

NOTES TO THE INTERIM FINANCIAL STATEMENTS

1. General Information

Chesterfield Resources plc is a minerals company exploring primarily for copper and gold in Canada and Cyprus and listed on the Standard segment of the Main Market of the London Stock Exchange.

The Company is domiciled in the United Kingdom and incorporated and registered in England and Wales, with registration number 10545738. The Company's registered office is Suite 1, 15 Ingestre Place, London, W1F 0DU.

2. Basis of Preparation

The condensed interim financial statements have been prepared in accordance with IAS 34 "Interim Financial Statements" as adopted by the United Kingdom and the Disclosure and Transparency Rules of the UK Financial Conduct Authority. The condensed interim financial statements should be read in conjunction with the annual financial statements for the period ended 31 December 2021, which have been prepared in accordance with International Financial Reporting Standards (IFRS) in conformity with the requirements of the Companies Act 2006.

The interim financial information set out above does not constitute statutory accounts within the meaning of the Companies Act 2006. It has been prepared on a going concern basis in accordance with the recognition and measurement criteria of International Financial Reporting Standards (IFRS) as adopted by the United Kingdom.

Statutory financial statements for the period ended 31 December 2021 were approved by the Board of Directors on 27 April 2022 and delivered to the Registrar of Companies. The report of the auditors on those financial statements was unqualified. The condensed interim financial statements are unaudited and have not been reviewed by the Company's auditor. 

Going concern

The Directors, having made appropriate enquiries, consider that adequate resources exist for the Company to continue in operational existence for the foreseeable future and that, therefore, it is appropriate to adopt the going concern basis in preparing the condensed interim financial statements for the period ended 30 June 2022.

Risks and uncertainties

The Board continuously assesses and monitors the key risks of the business. The key risks that could affect the Company's medium term performance and the factors that mitigate those risks have not substantially changed from those set out in the Company's 2021 Annual Report and Financial Statements, a copy of which is available on the Company's website: www.chesterfieldresourcesplc.com. The key financial risks are liquidity risk, credit risk, interest rate risk and fair value estimation.

Critical accounting estimates

The preparation of condensed interim financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the end of the reporting period. Significant items subject to such estimates are set out in Note 2 of the Company's 2021 Annual Report and Financial Statements. The nature and amounts of such estimates have not changed significantly during the interim period.

3.   Accounting Policies

Except as described below, the same accounting policies, presentation and methods of computation have been followed in these condensed interim financial statements as were applied in the preparation of the Company's annual financial statements for the period ended 31 December 2021.

3.1 Changes in accounting policy and disclosures

(a) New and amended standards mandatory for the first time for the financial year beginning 1 January 2021

The International Accounting Standards Board (IASB) issued various amendments and revisions to International Financial Reporting Standards and IFRIC interpretations. The amendments and revisions were applicable for the period ended 30 June 2021 but did not result in any material changes to the financial statements of the Group.

(b) New standards, amendments and Interpretations in issue but not yet effective or not yet endorsed and not early adopted

The standards and interpretations that are issued, but not yet effective, up to the date of issuance of the condensed interim financial statements are listed below. The Company intends to adopt these standards, if applicable when they become effective.

*Not yet endorsed by the UK.

The Company is evaluating the impact of the new and amended standards above. The Directors believe that these new and amended standards are not expected to have a material impact on the Company's results or shareholders' funds.

4.   Dividends

No dividend has been declared or paid by the Company during the six months ended 30 June 2022 (six months ended 30 June 2021: £nil).

5.   Loss per Share

The calculation of loss per share is based on a retained loss of £491,607 for the six months ended 30 June 2022 (six months ended 30 June 2021: £433,538) and the weighted average number of shares in issue in the period ended 30 June 2022 of 128,173,615 (six months ended 30 June 2021: 102,095,642).

No diluted earnings per share is presented for the six months ended 30 June 2022 or six months ended 30 June 2021 as the effect on the exercise of share options would be to decrease the loss per share.

6. Intangible fixed assets

The movement in capitalised exploration and evaluation costs during the period was as follows:

7. Events after the balance sheet date

The Directors believe there to be no significant events after the reporting date.

8. Approval of interim financial statements

The Condensed interim financial statements were approved by the Board of Directors on 31 August 2022.

**ENDS**