28 June 2024
Power Metal Resources plc ("POW", "Power Metal" or the "Company")
Interim Results
Power Metal Resources plc (AIM:POW, OTCQB:POWMF), the London-listed exploration company with a global project portfolio, announces its unaudited interim results for the six month period ended 31 March 2024 (the "period").
Sean Wade, Chief Executive Officer of Power Metal commented: "Over the past six months, we have continued to make positive developments across our project portfolio, showcasing its value potential. The numerous agreements signed, and discussions carried out with potential investors and joint venture partners, emphasise the strong position Power Metal is in as it develops its projects, which focus on key commodities in globally significant regions."
KEY DEVELOPMENTS IN THE HALF YEAR TO 31 MARCH 2024
- Raising of £1.3 million at a premium to the prevailing share price, cornerstoned by UK-based high net worth investors and a strategic Saudi Arabian investor;
- Following positive exploration work carried out at the Tati Gold Project ("Tati"), located in Botswana, the Company recommenced field operations at the project with six unique additional target areas being identified for detailed soil sampling. The soil sampling assay results confirmed the presence of three significant gold-in-soil geochemical anomalies, proving further continuity within the 8km-long gold trend at Tati. Of the 446 samples taken, three returned greater than 500 parts per billion ("ppb") gold ("Au") and an impressive 29 samples returned 100ppb Au or above;
- Radon gas sampling completed at the Tait Hill and Soaring Bay projects, part of Power Metal's uranium portfolio located in and around the prolific Athabasca Basin in Saskatchewan, Canada, confirmed multiple significant uranium targets. Additionally, soil geochemical sampling, carried out over the same targets, further demonstrated significant uranium prospectivity and enabled refinement of potential drill targets;
- Power Metal also undertook Unmanned Aerial Vehicle ("UAV") magnetic geophysics surveys covering the Clearwater and Cook Lake Projects which generated multiple high-priority targets for future exploration;
- Disposal of Kavango Resources plc shares, raising £556,000. Power Metal retains a 1% net smelter royalty return;
- High-level geophysical and geographical information system-based desktop study completed at the Selta Project, operated by First Development Resources plc, in which Power Metal holds a 58.59% interest. The study significantly expanded the existing rare-earth element and lithium exploration target area and generated new target areas;
- Signing of a non-binding Memorandum of Understanding ("MoU") with the Ministry of Investment of the Kingdom of Saudi Arabia to explore the possibility of joint collaboration efforts towards the identification and realisation of high value-added investment opportunities;
- Commencement of a diamond drilling programme at the Molopo Farms Complex nickel and platinum group element ("PGE") Project ("Molopo Farms") in Botswana, targeting a steeply-dipping high-priority conductor at target area T1-14;
- On behalf of the Company, Kalahari Key Mineral Exploration Pty Ltd, received extension license documents from the Botswana Department of Mines, for Prospecting Licence 310/2016 and PL311/2026 at Molopo Farms, granting the Company the right to prospect for metals for a two-year period;
- Acquisition of the 31.09km2 Richards Lake uranium property, located in the Athabasca Basin, via direct mineral claim staking;
- Signed Heads of Terms for the acquisition of a 75% interest in GSA (Environmental) Limited, a privately owned UK-headquartered engineering technology provider and process licensor, which specialises in the extraction of strategic metals from 'secondary sources' including power station ash, refinery waste, titanium dioxide waste and spent catalysts, while also producing much more environmentally friendly residue;
- Establishment of Power Arabia Limited to encompass all of Power Metal's activities across the Arabia Gulf, with several binding MoU's for potential joint ventures in negotiation stages;
- Signing of Heads of Agreement to conditionally dispose of the Company's entire 49.9% interest in New Ballarat Gold Corporation plc which wholly owns Red Rock Australasia Pty Ltd, the local operating company holding exploration interests in the Victoria Goldfields, Australia and in South Australia, for consideration up to £1.5 million potentially payable in cash, Red Rock Resources plc ordinary shares and warrants; and
- Binding earn-in agreement signed with RIWAQ Al-Mawarid for Mining ("RIWAQ"), a special purpose subsidiary of EV Metals Group plc ("EVM") focused on the development of the Saudi supply chain for critical raw materials from the exploration, mining and processing of minerals and metals in the Kingdom of Saudi Arabia. POW has the right to earn a 20% interest in RIWAQ's 15 tenements by sole funding US$350,000 expenditure on the tenements within 12 months from date of execution of the Binding Agreement, with a right to a further 10% by sole funding US$150,000 within six months following earning of 20% interest.
KEY DEVELOPMENTS SINCE 31 MARCH 2024
- Granted approval to trade on the OTCQB Venture Market in the US, which commenced on 10 April 2024;
- Successful intersection of the targeted steeply dipping geophysical superconductor at Molopo Farms on 23 April 2024;
- Acquisition of 75% of the issued share capital of GSA (Environmental) Limited on 20 May 2024;
- Conditional agreement by ASX listed Aruma Resources Limited for the full acquisition of NHMHA, which includes Power Metal's Wilan Project and additional licences in Mt Isa region of Queensland, announced on 28 May 2024. Power Metal owns 20% of NHMHA issued share capital and the agreement provides Power Metal with exposure to uranium and copper exploration potential on the ASX Markets;
- On 3 June 2024, Power Metal entered into a legally binding subscription agreement with ACAM LP ("ACAM") for a £2 million investment in Power Metal by way of a loan note with attaching warrants. The Company also entered into an eight-week exclusivity period and a non-binding term sheet with ACAM with the intention of forming a uranium-focused joint venture involving Power Metal's entire portfolio of uranium licences; and
- As announced on 13 March 2024, Power Metal entered into a Heads of Terms with Red Rock Resources Plc ("RRR"), the local operating company holding exploration interests in the Victoria Goldfields, to sell its 49.9% shareholding in New Ballarat Gold Corporation Plc ("NBGC"), which wholly owns Red Rock Australasia Pty Limited ("RRAL"), in South Australia, for up to £1.5 million payable in cash, RRR ordinary shares and RRR warrants, subject to various conditions precedent being met. On 12 June 2024, the conditions precedent of the transaction were either fulfilled or waived. Accordingly, completion of the disposal of the Company's 49.9% interest in NGGC, was announced on 19 June 2024.
- On 19 June 2024, Power Metal announced that a share option agreement ("Option" or the "Agreement") has been entered between Power Metal, Tati Greenstone Resources PTY LTD ("TGR") a company incorporated in Botswana held as a 100% owned subsidiary of Power Metal, and Tuscan Holding PTY Ltd, ("Tuscan"), a company incorporated in Botswana, (collectively the "Parties"). Subject to exercise of the Option, Power Metal, through TGR, will retain a 25% interest free carried to production in Prospecting Licence 049/2022 (which covers the Cherished Hope Mine) and from which it is intended that TGR will become a material dividend paying entity from net cash flow generated from gold production. Power Metal will retain the right to a 100% interest in other prospecting licences held by TGR other than PL049/2022.
- On 27 June 2024, the Company announced it completed a diamond core drill hole, DDH1-14C, at Molopo Farms, to a depth of 832.6m. Drilling successfully intersected the targeted steeply dipping geophysical superconductor at the high priority Target Area T1-14. Significant sulphur assays of up to 3.46% were identified alongside a sample which returned anomalous nickel of 0.128%.
POWER METAL INTERESTS AT TODAY'S DATE
The latest updated review of Power Metal's business interests is provided in the Company's investor presentation which may be accessed here:
https://www.powermetalresources.com/investors/presentation/
In addition, a single page Business Overview is provided for investors through the following link:
https://www.powermetalresources.com/company/
LATEST POSITION OF POWER METAL INTERESTS AND TARGETED OBJECTIVES FOR 2024
Priority Exploration and Potential Exploration Project Joint Ventures
| Exploration Interest | Latest Position & Forward Plans |
| Athabasca Uranium Saskatchewan, Canada (Uranium) POW: 100% | Power Metal currently holds 16 properties covering a total area of 914.714. km2 within and surrounding the prolific Athabasca Basin. The discussions regarding the proposed JV of Power Metal's entire uranium portfolio in and around the Athabasca Basin area are underway with ACAM and continue in line with the announced eight-week exclusivity period. Various work programmes across the portfolio are being defined and ongoing workstreams are being completed and analysed. |
| Molopo Farms Complex Project Botswana (Nickel - Copper - Platinum Group Element) POW: 87.71% | The cumulative exploration programmes undertaken at Molopo Farms, and the commencement of the diamond drilling programme, have demonstrated significant potential for a major nickel - platinum group element discovery or discoveries. The successful intersection at the high priority Target Area T1-14 confirms the presence of the superconductor that was identified by multiple geophysical surveys. Significant sulphur assays of up to 3.46% were identified alongside a sample which returned anomalous nickel of 0.128%.
|
| Tati Project Botswana (Gold - Nickel) POW: 100% | Following positive exploration work six additional target areas were identified for detailed soil sampling. 2024 geochemical soil sampling assay results confirmed the presence of three significant gold-in-soil geochemical anomalies of greater than 500ppb gold. Of the 446 samples collected, 29 samples returned assay results of 100ppb gold or above. The Cherish Hope Anomaly identified in the geochemical soil sampling results represents a significant extension zone trending southwest from the original Cherished Hope historical mine workings. The two further anomalies show the potential for a significantly larger anomalous gold-in-soil footprint. Commercial discussions regarding the potential for small-scale mining at the Cherished Hope Gold Mine are ongoing, in parallel with continuing exploration work. The Company entered into a Share Option Agreement between Power Metal, Tati Greenstone Resources PTY LTD, held as a 100% owned subsidiary of Power Metal, and Tuscan Holding PTY Ltd. Subject to exercise of the Option, Power Metal, through TGR, will retain a 25% interest free carried to production in Prospecting Licence 049/2022 (which covers the Cherished Hope Mine) and from which it is intended that TGR will become a material dividend paying entity from net cash flow generated from gold production. Power Metal will retain the right to a 100% interest in other prospecting licences held by TGR. |
| North Wind Project North America (Lithium) POW: 100% | A total of 389 soil geochemical samples were taken following the exploration programme completed in August 2023. Significantly, several pegmatites were identified across North Wind, with five pegmatite samples collected - which was a key ground exploration objective. Assay testing of these samples is ongoing with the results determining the next steps of the work programme. |
Investment Holdings and Disposals Planned/Underway
Note: other project packages within the Power Metal portfolio are also in earlier stages of disposal and/or spin-out preparations in addition to those listed below.
| Business Interest | Latest Position |
| First Class Metals plc (LON:FCM) Schreiber-Hemlo, Ontario, Canada (Gold - Base Metals) POW: c.23.24% | FCM secured a listing on the London Stock Exchange in late July 2022 with Power Metal holding an interest, following its IPO financing, of 28.19% on listing (now c.26% after dilution since listing). |
| Golden Metal Resources plc (LON:GMET) Nevada, USA Gold - Base Metals POW: c.49.53% | GMET secured a listing on the London Stock Exchange in late May 2023 with Power Metal holding an interest, following its IPO financing, of 62.06%. Exploration work is ongoing at GMET's flagship Pilot Mountain Project with diamond drilling of key targets underway. Acceleration of development is being considered using the current Mineral Resource Estimate. On 25 June 2024 547.6m of the planned 2,000m drilling programme had been completed with tungsten mineralisation and the successful discovery of a porphyry system identified. Assay testing results are pending and the drilled holes have the potential to expand the deposit footprint towards both the north and south. Exploration at the Garfield Project, to date, has included detailed geochemical sampling and follow up analysis which highlighted the presence of both porphyry and skarn-type mineralisation and alteration at the 'High-Grade Zone'. Further to this, mapping, prospecting and rock sampling was recently completed with results confirming the presence of high-grade copper, silver and gold mineralisation, as well as leading to the bedrock discovery of the Pamlico Gold Zone. Following the strategic raise of £506,250 GMET is fully funded to continue the ongoing geophysical work programme along with follow up drilling. On the 24 June 2024 GMET changed its company name to Guardian Metal Resources PLC, with the stock ticker remaining LON: GMET and OTCQB: GMTLF.
|
| First Development Resources plc ("FDR") Western Australia /Northern Territory (Gold - Copper - Rare Earth Elements - Uranium - Lithium) POW: c.59% | A high-level geophysical and geographical information system-based desktop study has been completed at the Selta Project. The study significantly expanded the existing rare-earth element and lithium exploration target area and generated new target areas. An exploration strategy for Selta is being developed to systematically test the identified targets. FDR 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. |
| New Ballarat Gold Corporation plc ("NBGC") Victoria, Australia (Gold) POW: 0% | Power Metal signed a Heads of Terms Agreement to conditionally dispose of the Company's entire 49.9% interest in New Ballarat Gold Corporation to JV Partner, Red Rock Resources, for consideration up to £1.5 million potentially payable in cash, Red Rock Resources ordinary shares and warrants. On 12 June 2024, the conditions precedent of the transaction were either fulfilled or waived. Accordingly, completion of the disposal of the Company's 49.9% interest in NGGC, was announced on 19 June 2024. |
| ION Battery Resources Ltd ("ION") Canada (Lithium & Graphite) POW: 100% | 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. |
| New Horizon Metals Pty Ltd ("NHM") Queensland and South Australia (Copper - Uranium - Gold) POW: 20% | Power Metal holds a 20% interest in NHM, which holds projects in Queensland and South Australia, and is working towards a listing in the Australian capital markets. |
| Power Arabia Ltd Kingdom of Saudi Arabia POW: 83% | Power Arabia Limited was established to encompass all of Power Metal's activities across the Arabia Gulf, with several binding MoU's for potential joint ventures in negotiation stages. Power Arabia is currently undergoing a pre-IPO financing round to fund activities in the region, with a view to a listing on the London capital markets in due course. Conversations are progressing with investors, both from the Gulf and internationally, who have indicated significant interest in a regionally-focused investment vehicle. A binding earn-in agreement has been signed with RIWAQ Al-Mawarid for Mining, a special purpose subsidiary of EV Metals Group plc, focused on the development of the Saudi supply chain for critical raw materials from the exploration, mining and processing of minerals and metals. RIWAQ is the sole beneficial owner and sole registered holder of 15 tenements in the Balthaga Suite in the south of the Arabian Shield, 13 are considered protective for hard rock lithium, one for nickel sulphides, and one for a copper/molybdenum porphyry system.
|
PROJECTS WITH NEXT STEPS UNDER CONSIDERATION
| Project | Latest Position & Key Forward Events |
| Haneti Project Tanzania (Polymetallic) POW: 35% (65% JV Partner Katoro Gold plc (LON:KAT)) | Power Metal continues to liaise with its partner to seek a new pathway for advancement of the Haneti Project in Tanzania where the Company holds a 35% interest. |
| Silver Peak Project British Columbia, Canada (Silver) POW: 30% | The Company's 30% interest in the Silver Peak project remains as previously stated and work is ongoing with its partners on the next commercial steps. |
FINANCIAL HIGHLIGHTS FOR THE HALF YEAR ENDED 31 MARCH 2024
- Loss for the period, attributable to owners of the parent of £0.40 million (2023: £1.50 million), resulting in loss per share of 0.38 pence (2023: 1.78 pence);
- Financing undertaken in February 2024 raising £1.3 million;
- Total assets of £16.22 million at the period end (30 September 2023: £14.62 million); and
- Net assets of £15.38 million at the period end (30 September 2023: £13.99 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) 20 3778 1396 |
| | |
| SP Angel Corporate Finance LLP (Nomad and Joint Broker) | |
| Ewan Leggat/Caroline Rowe | +44 (0) 20 3470 0470 |
| | |
| Tamesis Partners LLP (Joint Broker) | |
| Richard Greenfield/Charlie Bendon | +44 (0) 20 3882 2868 |
| | |
| | |
| BlytheRay (PR Advisors)
| +44 (0) 20 7138 3204
|
| |
NOTES TO EDITORS
Power Metal Resources plc - Background
Power Metal Resources plc (AIM:POW, OTCQB:POWMF) is a London-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, Saudi Arabia 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.
POWER METAL RESOURCES PLC
UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED 31 MARCH 2024
|
| Note | 6 months ended 31-Mar-24 (unaudited) £'000 | | 6 months ended 31-Mar-23 (unaudited) £'000 | | Year ended 30-Sep-23 (audited) £'000 | |
| Revenue |
| - | | 1 | | 78 | |
| Gross profit | | - | | 1 | | 78 | |
|
|
| | | | | | |
| Operating expenses | | (1,451) | | (1,016) | | (2,777) | |
| Fair value gains/(losses) through profit or loss | | 1,050 | | (537) | | 1,604 | |
| Gain on disposal of joint venture | | - | | 48 | | - | |
| Loss from operating activities | | (401) | | (1,504) | | (1,095) | |
|
| | | | | | | |
| Share of post-tax losses of equity accounted joint ventures | | (79) | | (108) | | (219) | |
| Loss before taxation | | (480) | | (1,612) | | (1,314) | |
| | | | | | | | |
| Taxation | | - | | - | | - | |
| Loss for the period from continuing operations | | (480) | | (1,612) | | (1,314) | |
|
|
| | | | | | |
| Items that will or may be reclassified to profit or loss: |
| | | | | | |
| Exchange translation | | - | | (171) | | 6 | |
| Total other comprehensive (expense)/ income |
| - | | (171) | | 6 | |
| | | | | | | | |
| Total comprehensive expense for the period |
| (480) | | (1,783) | | (1,308) | |
|
|
| | | | | | |
| Loss for the period attributable to: |
| | | | | | |
| Owners of the parent |
| (399) | | (1,495) | | (1,096) | |
| Non-controlling interests |
| (81) | | (117) | | (218) | |
|
| (480) | | (1,612) | | (1,314) | ||
| Total comprehensive loss attributable to: |
| | | | | | |
| Owners of the parent | (408) | | (1,629) | | (1,083) | ||
| Non-controlling interests | (72) | | (154) | | (225) | ||
|
| (480) | | (1,783) | | (1,308) | ||
|
| | | | | | ||
| Loss per share from continuing operations attributable to the ordinary equity holder of the parent: | |||||||
| Basic and diluted loss per share (pence) | 4 | (0.38) | | (1.78) | | (1.19) | |
POWER METAL RESOURCES PLC
UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2024
|
| Note | 31-Mar-24 (unaudited) £'000 |
| 31-Mar-23 (unaudited) £'000 |
| 30-Sep-23 (audited) £'000 |
|
| | | | | | |
| Assets | | | | | | |
| Intangible assets |
| 5,503 | | 9,438 | | 4,947 |
| Investments in joint ventures |
| 281 | | 278 | | 290 |
| Financial assets at fair value through profit or loss |
| 1,186 | | 469 | | 1,161 |
| Property, plant & equipment |
| 12 | | 40 | | 8 |
| Non-current assets |
| 6,982 | | 10,225 | | 6,406 |
|
|
| | | | | |
| Financial assets at fair value through profit or loss |
| 7,712 | | 3,603 | | 7,188 |
| Assets classified as held for sale |
| - | | 78 | | 191 |
| Trade and other receivables |
| 1,065 | | 287 | | 481 |
| Cash and cash equivalents |
| 455 | | 427 | | 1,098 |
| Current assets |
| 9,232 | | 4,395 | | 8,958 |
|
|
| | | | | |
| Total assets |
| 16,214 | | 14,620 | | 15,364 |
|
|
| | | | | |
| Equity |
| | | | | |
| Share capital | 5 | 8,664 | | 8,190 | | 8,531 |
| Share premium |
| 28,688 | | 25,144 | | 27,497 |
| Capital redemption reserve |
| 5 | | 5 | | 5 |
| Capital contribution reserve |
| - | | 2,322 | | - |
| Share based payments reserve |
| 1,770 | | 1,699 | | 1,712 |
| Foreign exchange reserve |
| 94 | | (44) | | 103 |
| Accumulated losses |
| (24,632) | | (25,215) | | (24,276) |
| Total |
| 14,589 | | 12,101 | | 13,572 |
|
|
| | | | | |
| Non-controlling interests |
| 792 | | 1,890 | | 907 |
| Total equity |
| 15,381 | | 13,991 | | 14,479 |
|
|
| | | | | |
| Liabilities |
| | | | | |
| Trade and other payables |
| 833 | | 629 | | 885 |
| Current liabilities |
| 833 | | 629 | | 885 |
|
|
| | | | | |
| Total liabilities |
| 833 | | 629 | | 885 |
|
|
| | | | | |
| Total equity and liabilities |
| 16,214 | | 14,620 | | 15,364 |
POWER METAL RESOURCES PLC
UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 31 MARCH 2024
|
| Share capital |
| Share premium |
| Capital redemption reserve £'000 |
| Share based payment reserve |
| Foreign exchange reserve |
| Accumulated losses £'000 |
| Total £'000 |
| Non-controlling interests £'000 |
| Total equity £'000 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Balance at 1 October 2023 (audited) | 8,531 | | 27,497 | | 5 | | 1,712 | | 103 | | (24,276) | | 13,572 | | 907 | | 14,479 |
| Loss for the period | - | | - | | - | | - | | - | | (399) | | (399) | | (81) | | (480) |
| Total other comprehensive expense | - | | - | | - | | - | | (9) | | - | | (9) | | 9 | | - |
| Total comprehensive loss for the period | - | | - | | - | | - | | (9) | | (399) | | (408) | | (72) | | (480) |
| | | | | | | | | | | | | | | | | | |
| Issue of ordinary shares | 133 | | 1,191 | | - | | - | | - | | - | | 1,324 | | - | | 1,324 |
| Share based payments | - | | - | | - | | 58 | | - | | - | | 58 | | - | | 58 |
| Non-controlling interest adjustment | - | | - | | - | | - | | - | | 43 | | 43 | | (43) | | - |
| | 133 | | 1,191 | | - | | 58 | | - | | 43 | | 1,425 | | (43) | | 1,382 |
| Balance at 31 March 2024 (unaudited) | 8,664 | | 28,688 | | 5 | | 1,770 | | 94 | | (24,632) | | 14,589 | | 792 | | 15,381 |
POWER METAL RESOURCES PLC
UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 31 MARCH 2023
|
| Share capital |
| Share premium |
| Capital redemption reserve £'000 |
| Capital contribution £'000 |
| Share based payment reserve |
| Foreign exchange reserve |
| Accumulated losses £'000 |
| Total £'000 |
| Non-controlling interests £'000 |
| Total equity £'000 | ||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||
| Balance at 1 October 2022 (audited) | 8,065 | | 23,312 | | 5 | | 2,322 | | 1,638 | | 90 | | (23,742) | | 11,690 | | 2,066 | | 13,756 |
| |||||||||||||
| Loss for the period | - | | - |
| - | | - | | - | | - | | (1,495) | | (1,495) | | (117) | | (1,612) | ||||||||||||||
| Total other comprehensive expense | - | | - | | - | | - | | - | | (134) | | - | | (134) | | (37) | | (171) | ||||||||||||||
| Total comprehensive loss for the period | - | | - | | - | | - | | - | | (134) | | (1,495) | | (1,629) | | (154) | | (1,783) | ||||||||||||||
| | | | | | | | | | | | | | | |
|
|
| | | ||||||||||||||
| Issue of ordinary shares | 125 | | 1,878 | | - | | - | | - | | - | | - | | 2,003 | | - | | 2,003 | ||||||||||||||
| Cost of share issues | - | | (46) | | - | | - | | - | | - | | - | | (46) | | - | | (46) | ||||||||||||||
| Share based payments | - | | - | | - | | - | | 61 | | - | | - | | 61 | | - | | 61 | ||||||||||||||
| Non-controlling interest adjustment | - | | - | | - | | - | | - | | - | | 22 | | 22 | | (22) | | - | ||||||||||||||
| | 125 | | 1,832 | | - | | - | | 61 | | - | | 22 | | 2,040 | | (22) | | 2,018 | ||||||||||||||
| Balance at 31 March 2023 (unaudited) | 8,190 | | 25,144 | | 5 | | 2,322 | | 1,699 | | (44) | | (25,215) | | 12,101 | | 1,890 | | 13,991 | ||||||||||||||
POWER METAL RESOURCES PLC
AUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2023
| | Share capital |
| Share premium |
| Capital redemption reserve |
| Capital contribution reserve |
| Share based payment reserve |
| Foreign exchange reserve |
| Accumulated losses |
| Total |
| Non-controlling interests |
| Total equity |
|
| £'000 |
| £'000 |
| £'000 |
| £'000 |
| £'000 |
| £'000 |
| £'000 |
| £'000 |
| £'000 |
| £'000 |
|
| | | | | | | | | | | | | | | | | | | |
| Balance at 1 October 2022 | 8,065 | | 23,312 | | 5 | | 2,322 | | 1,638 | | 90 | | (23,740) | | 11,692 | | 2,065 | | 13,757 |
| | | | | | | | | | | | | | | | | | | | |
| Loss for the period | - | | - | | - | | - | | - | | - | | (1,096) | | (1,096) | | (218) | | (1,314) |
| Other comprehensive income | - | | - | | - | | - | | - | | 13 | | - | | 13 | | (7) | | 6 |
| Total comprehensive income / (loss) for the period | - |
| - |
| - |
| - |
| - |
| 13 |
| (1,096) |
| (1,083) |
| (225) |
| (1,308) |
| | | | | | | | | | | | | | | | | | | | |
| Issue of ordinary shares | 466 | | 4,405 | | - | | - | | - | | - | | - | | 4,871 | | - | | 4,871 |
| Costs of share issues | - | | (220) | | - | | - | | - | | - | | - | | (220) | | - | | (220) |
| Share based payments | - | | - | | - | | - | | 74 |
| - | | - | | 74 | | - | | 74 |
| Non-controlling interest adjustment on step acquisition of subsidiaries | - | | - | | - | | - | | - | | - | | - | | - | | 99 | | 99 |
| Non-controlling interest adjustment on step disposal of subsidiaries | - | | - | | - | | - | | - | | - | | 22 | | 22 | | (22) | | - |
| Non-controlling interest adjustment on disposal of subsidiaries | - | | - | | - | | (2,322) | | - | | - | | 538 | | (1,784) | | (1,010) | | (2,794) |
| Total transactions with owners | 466 |
| 4,185 |
| - |
| (2,322) |
| 74 |
| - |
| 560 |
| 2,963 |
| (933) |
| 2,030 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Balance at 30 September 2023 | 8,531 |
| 27,497 |
| 5 |
| - |
| 1,712 |
| 103 |
| (24,276) |
| 13,572 |
| 907 |
| 14,479 |
POWER METAL RESOURCES PLC
UNAUDITED CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED 31 MARCH 2024
|
| 6 months ended 31-Mar-24 (unaudited) £'000 |
| 6 months ended 31-Mar-23 (unaudited) £'000 |
| Year ended 30-Sep-23 (audited) £'000 |
| Cash flows from operating activities | | | | | |
| Loss for the period | (480) | | (1,612) | | (1,314) |
| Adjustments for: | | | | | |
| - Fair value adjustment | (1,050) | | 537 | | (1,604) |
| - Share of post-tax losses of equity accounted joint ventures | 79 | | 108 | | 219 |
| - Disposals | 504 | | (47) | | (175) |
| - Expenses settled in shares | 24 | | - | | 129 |
| - Depreciation | 3 | | 2 | | 5 |
| - Foreign exchange differences | 54 | | (150) | | (33) |
| - Share based payment expense | 58 | | 17 | | 30 |
|
| (808) | | (1,145) | | (2,743) |
| Changes in working capital: | | | | | |
| - Trade and other receivables | (84) | | (9) | | (169) |
| - Trade and other payables | (105) | | (222) | | 797 |
| Net cash used in operating activities | (997) | | (1,376) | | (2,115) |
|
| | | | | |
| Cash flows from investing activities | | | | | |
| Investment in financial assets at fair value through profit or loss | (3) | | - | | (291) |
| Investment in Joint Ventures | - | | (194) | | - |
| Investments in associates | (70) | | - | | (316) |
| Investments in intangibles | (366) | | (408) | | (797) |
| Cash related to deconsolidated subsidiary | - | | - | | (410) |
| Purchase of property, plant and equipment | (7) | | (9) | | (8) |
| Net cash used in investing activities | (446) | | (611) | | (1,822) |
|
| | | | | |
| Cash flows from financing activities | | | | | |
| Proceeds from issue of share capital | 800 | | 900 | | 3,616 |
| Shares issued to non-controlling interests by subsidiary | - | | - | | 79 |
| Issue costs | - | | (46) | | (220) |
| Net cash flows from financing activities | 800 | | 854 | | 3,475 |
|
| | | | | |
| Net (decrease) in cash and cash equivalents | (643) | | (1,133) | | (462) |
| | | | | | |
| Cash and cash equivalents at beginning of period | 1,098 | | 1,560 | | 1,560 |
| Cash and cash equivalents at end of period | 455 | | 427 | | 1,098 |
Details of significant non-cash transactions are disclosed in note 5.
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL REPORT
1. Reporting entity
Power Metal Resources plc is a company domiciled in the United Kingdom. The unaudited consolidated interim financial report for the period ended 31 March 2024 comprises the results of the Company and its subsidiaries (the "Group"). The Group primarily is involved in the exploration and exploitation of mineral resources in Africa, Australia, Canada and the US.
2. Basis of preparation
(a) Statement of compliance
As permitted, IAS 34, 'Interim Financial Reporting' has not been applied in this interim report.
The financial information presented in this interim report has been prepared using accounting policies that are expected to be applied in the preparation of the financial statements for the year ending 30 September 2024.
These policies are in accordance with the recognition and measurement principles of International Financial Reporting Standards, International Accounting Standards, and Interpretations (collectively "IFRS") issued by the International Accounting Standards Board as endorsed for use in the United Kingdom, and these principles are disclosed in the Financial Statements for the year ended 30 September 2023.
The interim results have been prepared on a going concern basis. The financial information in this interim report does not constitute statutory accounts within the meaning of Section 435 of the Companies Act 2006. The 2024 interim financial report has not been audited.
The Annual Report and Financial Statements for 2023 have been filed with the Registrar of Companies. The Independent Auditors' Report on the Annual Report and Financial Statement for 2023 was unqualified and did not contain a statement under 498(2) or 498(3) of the Companies Act 2006.
The interim results were approved by the Board of Directors on 26 June 2024.
(b) Judgements and estimates
Preparing the interim financial report requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income, and expense. Actual results may differ from these estimates.
In preparing this consolidated interim financial report, significant judgements made by management in applying the Group's accounting policies and key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements as at and for the year ended 30 September 2023.
(c) Going concern
The interim financial report has been prepared on a going concern basis. Although the Group's assets are not generating revenues, the Directors believe, having considered all available information, including the Company's proven ability to raise further equity funds from its supportive shareholder base, that the Group will have sufficient funds to meet its expected committed and contractual expenditure for the foreseeable future. Thus, the Directors continue to adopt the going concern basis of accounting in preparing the interim financial report for the period ended 31 March 2024.
3. Significant accounting policies
The accounting policies applied by the Group in this consolidated interim financial report are the same as those applied by the Group in its consolidated financial statements as at and for the year ended 30 September 2023.
4. Earnings per share
Basic loss per share
The calculation of basic loss per share is based on the loss attributable to ordinary shareholders of the parent of £399,000 (2023: £1,495,000), and a weighted average number of ordinary shares in issue of 106,064,426 (2023: 84,071,550).
The weighted average number presented for the period ending 31 March 2023 above and the year ending 30 September 2023 in the statement of comprehensive income have been adjusted for the effect of a 20 to 1 share consolidation.
5. Issues of Equity
In February 2024, the Company raised £1.3 million, before expenses, through the issue of 130,000,000 new ordinary shares of 0.1p each in the company at an issue price of 1 pence per share.
In March 2024, the Company consolidated its ordinary share capital resulting in every 20 existing ordinary shares of 0.1p each being consolidated into 1 new ordinary share of 2p each. The number of shares prior to consolidation was 2,213,468,340.
At the period end, the Company had 110,673,417 Ordinary Shares in issue (30 September 2023: 2,080,106,256).
At the date of this interim report, the Company had 111,187,774 Ordinary Shares in issue.
**Ends**
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