TIDMALBA
RNS Number : 5629J
Alba Mineral Resources PLC
17 August 2023
Alba Mineral Resources plc
("Alba" or the "Company")
HALF-YEARLY REPORT
The Board of Directors of Alba Mineral Resources plc (the
"Company" or "Alba") is pleased to report the Company's interim
results for the six months ended 31 May 2023. They incorporate the
results of its subsidiary companies Aurum Mineral Resources Limited
("AMR"), Mauritania Ventures Limited ("MVL"), Dragonfire Mining
Limited ("DML"), the Gold Mines of Wales group of companies
("GMOW") and GMOW (Gwynfynydd) Limited (together, the "Subsidiary
Companies", collectively with Alba, the "Group").
For the period to 9 March 2023 the interim results also
consolidate the GreenRoc Mining Plc group of companies ("GreenRoc")
comprising Greenroc Mining Plc, Obsidian Mining Limited ("OML"),
White Eagle Resources Limited ("WERL") and White Fox Resources
Limited ("WFRL") (together, "GreenRoc"). After this date the
investment is treated as an associate.
CHAIRMAN'S STATEMENT
I am pleased to present shareholders with a review of our
activities in the six months to 31 May 2023.
1. REVIEW OF ACTIVITIES
1.1 WELSH GOLD PROJECTS
(Clogau-St David's, Gwynfynydd and Dolgellau Gold Exploration
Project) (100%)
During the reporting period, a lot of our work was focused on
securing the ecological permits required for us to be able to
dewater and then explore the Lower Llechfraith Workings at the
Clogau-St David's Gold Mine in north Wales ("Clogau" or the
"Mine"), this being our highest priority gold target within the
Mine system.
The Lower Llechfraith workings have all the key geological
characteristics for the occurrence of high-grade gold
mineralisation, including greenstone sills, Clogau Shales and
structural complexity in the lode itself. This area was a key focus
for the last large-scale development efforts at Clogau, prior to
Alba's time. Historical plans from that period record sightings of
visible gold within these lower workings. Alba's 2020-21 surface
drilling programme proved the downward continuation of the
Llechfraith lode structure up to around 122 metres below where it
was last explored on Level 4. As such, the target structure below
this level has been untouched by historical exploration and
development.
Access to the Lower Llechfraith workings has not been possible
for some decades due to flooding, hence the requirement for a
dewatering programme to be undertaken, during which water would be
pumped out of the flooded workings and then treated in the Clogau
mine yard using a settlement tank to remove excess suspended
solids.
The inability to progress work on this principal target has of
course been a source of some considerable frustration. However, in
July 2023 we were delighted to report the award to us of those key
ecological permits. Having already done much of the preparatory and
planning work in advance in terms of lining up contractors,
equipment and materials, we were able to start the dewatering
exercise within a matter of days following permit grant. And once
the workings had been dewatered to a sufficient extent, our
contractors were able to start work on the essential safety and
access works which would enable us to make our way safely into the
lower workings.
All safety works at Level 2 and Level 3 have now been completed,
which will allow safe access down to Level 4 once dewatering has
been completed. Alba's contractors are in the process of completing
a cabin structure on the Llechfraith Adit level which will provide
the final bat exclusion and noise mitigation measure in advance of
blasting and other exploration activities at Level 4, post
dewatering.
Dewatering was initially successfully undertaken down to ca. six
metres depth, however unseasonal and exceptionally heavy rainfall
during the dewatering period, some three times higher than the
average for the time of year, has resulted in the workings
reflooding, following which the Company has requested from the
regulator, Natural Resources Wales ("NRW"), an extension to the
higher rate (100m3/day) abstraction rate. While, as at the time of
writing, NRW has indicated that it is not minded to grant a
temporary variation, the Company continues to make formal
representations in that regard. The Company is at the same time in
the process of applying for formal variations to both the discharge
and abstraction permits to increase the applicable thresholds under
both permits.
An initial dewatering of the workings to at least around 15
metres in vertical extent would allow the Company to commence the
planned safety, clean-up and exploration works (surveying, mapping
and sampling) on Level 4. The second phase of dewatering (down to
around 30m vertical extent), subject to the permitted development
rights notification regime, would allow the sinking of winzes below
Level 4 for the purposes of the planned bulk sampling of the
exposed development, in order to determine the gold content and
test the Company's existing geological model. Depending on the
outcome of that work, the subsequent phase of work is expected to
involve putting in new development, commencing with the sinking of
a new shaft or the extension of the existing Llechfraith Shaft.
Since the implementation of mitigation measures within the
settlement tank being used to remove excess solids, daily analysis
of the tank discharge consistently shows that dissolved Cu is
<1ug/L, dissolved Fe <10ug/L, dissolved Zn <5ug/L, total
As <5ug/L and total Al <50ug/L, all being well within the
prescribed discharge permits criteria.
Generally, the fact that the permitting process over the course
of the past two years has included a lengthy Habitat Regulations
Assessment ("HRA") undertaken by the regulator NRW, for which
process we generated and contributed a huge volume of ecological
survey data and analysis and devised wide-ranging mitigation and
safety measures for the protection of the environment, should
provide a framework for a more streamlined and efficient process
for future permitting applications.
In relation to the waste tip at Clogau, the Company is close to
submitting the pre-application enquiries to the Local Planning
Authority as a precursor to the submission of a full planning
application for the exploitation of the tip.
Across the wider Dolgellau Exploration Project, our plans to
undertake an aerial, UAV (unmanned aerial vehicle) geophysical
survey over some of our key regional gold targets have been delayed
somewhat by a backlog of applications at the regulator, the Civil
Aviation Authority (CAA). However, we are advised that the CAA has
now issued the CAA Operational Authorisation which sets out the
agreed safety case for operating the UAV in the target area, and
that the final step is to have the area approved and notified. As
such, the Company remains on track to commence the survey in
September 2023.
1.2 GREENROC MINING PLC
From September 2021, when Alba completed the spin-out and IPO of
our Greenland assets into GreenRoc Mining Plc ("GreenRoc"), until
March 2023, Alba held a 54% majority interest in GreenRoc. As such,
Alba's consolidated financial statements include GreenRoc and its
subsidiaries to that date.
More recently, fundraisings completed by GreenRoc in order to
push forward the development of the high-grade Amitsoq project in
southern Greenland have resulted in the dilution of Alba's stake in
GreenRoc to 44.67% as at the reporting date and to 42.97% in the
most recent placing which was announced on 1 August 2023.
Nonetheless, we remain by some distance GreenRoc's largest
shareholder and remain heavily involved in the strategic direction
and development of the company.
In fact, we did participate in GreenRoc's most recent
fundraising, contributing GBP115,000 to GreenRoc's total raise of
GBP470,000. We have always made it clear that we would look to
support GreenRoc's fundraising efforts as and when it is feasible
to do that. In my view, the GreenRoc management team has
consistently delivered excellent results and made great strides at
what is turning into a world-class graphite project at Amitsoq.
With an independent Preliminary Economic Assessment (PEA) due to be
delivered soon and graphite samples being prepared for a potential
international off-take customer, Amitsoq is well set to continue
its upward trajectory towards development and production.
Highlights of the progress made at Amitsoq during the reporting
period include the declaration of a substantial, near three times
Resource upgrade in January 2023. It can often be the case that in
seeking to add tonnes to a Resource by further rounds of drilling,
that can come at the expense of the overall grade. At Amitsoq,
however, not only have we been able to grow the Resource
substantially, from 8.28Mt to 23.05Mt, but we have also managed to
increase the overall Resource grade from 19.75% to 20.41% C(g),
giving a total graphite content of 4.71 Mt. This has cemented
Amitsoq's position as one of the very highest-grade graphite
deposits in the world.
Meanwhile, on the processing side of things, a 700kg bulk sample
of graphite ore from Amitsoq is nearing the final stages of
separation at process engineering contractors UVR-FIA.
The excellent progress delivered at Amitsoq has not only been on
these technical aspects. In February 2023, the European Raw
Materials Alliance and EIT Raw Materials, bodies created by the
European Union for the purpose of ensuring security of supply of
critical raw materials for Europe, declared their official support
for GreenRoc and Amitsoq, calling the latter a deposit of "global
importance". And in March 2023, GreenRoc signed a Memorandum of
Understanding ("MoU") with Leonhard Nilsen & Sønner A/S
("LNS"), a significant construction and mining group headquartered
in Norway, in relation to the development of Amitsoq Graphite.
The MoU provides a framework for LNS and GreenRoc to explore the
commercial opportunities relating to Amitsoq, and the potential
appointment of LNS as the civil, mining and/or logistics contractor
for Amitsoq during the construction and operational phases. LNS has
decades of experience as a contractor and mine operator in the
Arctic region and other parts of the world, not only in Norway,
where it is the operating contractor for a number of mining
companies, but also in Greenland itself, most recently at the
producing Aappaluttoq Ruby Mine on the east coast.
GreenRoc is also currently working on the provision of graphite
concentrate and spheronised graphite samples from Amitsoq to a
potential international offtake partner in order for that party to
conduct its own testwork.
Steady progress is also being made in relation to the
Environmental Impact Assessment (EIA) and Social Impact Assessment
(SIA) work, with both studies remaining on track for delivery in
2024. And an independent Preliminary Economic Assessment (PEA),
which is being conducted by SLR Consulting and which is expected to
help advance discussions with potential project and strategic
partners in the latter part of this year and into 2024, is
advancing as planned with expected delivery this autumn.
1.3 OTHER PROJECTS AND INVESTMENTS
During the period, we surrendered the licence for our Limerick
Base Metals Project. The targets we had identified for exploration
drilling could not be progressed as planned due to landowner access
issues, and alternative drill collar locations proved not to be
economically viable. As such, we were obliged to surrender the
licence.
In March 2023, the majority licence holder of the Horse Hill Oil
Field in Surry, England, UKOG Plc, announced the terms of a
proposed farmout arrangement to a third-party group which would
fund a seismic survey at Horse Hill. The farmout is subject to
approval by the shareholders of the operator of the field, Horse
Hill Developments Limited, including Alba. As at the date of this
report, the shareholders have not approved the farmout.
2. CORPORATE
Post-period end, on 7 July 2023, Alba announced a share placing
raising GBP750,000. A broker option was included as part of the
placing, allowing shareholders and others to apply through their
brokers for an allocation in the placing, and on 24 July 2023 it
was announced that an additional GBP15,150 had been raised via the
broker option.
On 9 March 2023, following the dilution of its shareholding in
GreenRoc due to a share placing by the latter, the Group ceased to
consolidate the GreenRoc companies and instead accounted for its
holding in GreenRoc as an "Investment in Associate".
Under applicable accounting standards, the dilution and
resulting change in GreenRoc's status from subsidiary to associate
is a deemed disposal of GreenRoc by Alba which results in an
accounting gain. Previously, any fair value uplift arising from the
initial IPO transaction was eliminated through the consolidation
whereas going forward that uplift is no longer eliminated. This
accounting gain does not have any tax implications for the
Group.
On 1 August 2023 GreenRoc announced a further placing, raising
gross proceeds of GBP470,000 at 3.8p per share. Alba participated
in the placing, subscribing for 3,026,316 Placing Shares for a
total subscription of GBP115,000. Following the placing, Alba has a
shareholding of 42.97% in GreenRoc.
3. RESULTS
The Group made a profit of GBP2,102,000 after tax (2022: loss of
GBP815,000), including an accounting profit in relation to the
de-consolidation of GreenRoc of GBP2,672,000 (2022: nil).
This transaction is presented unaudited so the accounting
treatment may be revised in the full year accounts, subject to
technical review by the Company's auditors.
Operating losses were GBP459,000 compared with GBP814,000 in the
comparative period. The reduction in costs is principally due to
ceasing to consolidate GreenRoc Mining plc from 9 March 2023. The
underlying operating losses of Alba and its remaining subsidiaries
are at a similar level year-on-year.
During the period, GBP202,000 was spent on exploration
activities across the Group. Cash at the period end was GBP58,000,
reduced in part by removing GreenRoc's cash asset from the
consolidated balance sheet. As noted above, Alba has raised funding
of GBP750,000 since the reporting date.
Intangible assets decreased by GBP3.8m from the comparative
interim period last year, reflecting the exclusion of GreenRoc's
Greenland project assets from the balance sheet now that it is no
longer consolidated. Instead, a new line item is shown in the
balance sheet, namely the "Investment in Associate" of GBP5.4m,
representing the Group's investment in GreenRoc at cost less a
proportionate share of losses.
4. OUTLOOK
Alba remains in a strong position to generate real and sustained
growth across its existing portfolio of assets and investments. We
also continue to assess opportunities to expand our portfolio's
value by the acquisition of additional complementary assets.
On behalf of the entire Board, I would like to take this
opportunity to thank our shareholders for all their support.
George Frangeskides
16 August 2023
Executive Chairman
This announcement contains inside information for the purposes
of the UK Market Abuse Regulation and the Directors of the Company
are responsible for the release of this announcement.
Forward Looking Statements
This announcement contains forward-looking statements relating
to expected or anticipated future events and anticipated results
that are forward-looking in nature and, as a result, are subject to
certain risks and uncertainties, such as general economic, market
and business conditions, competition for qualified staff, the
regulatory process and actions, technical issues, new legislation,
uncertainties resulting from potential delays or changes in plans,
uncertainties resulting from working in a new political
jurisdiction, uncertainties regarding the results of exploration,
uncertainties regarding the timing and granting of prospecting
rights, uncertainties regarding the Company's ability to execute
and implement future plans, and the occurrence of unexpected
events. Actual results achieved may vary from the information
provided herein as a result of numerous known and unknown risks and
uncertainties and other factors.
For further information, please visit
www.albamineralresources.com or contact:
Alba Mineral Resources plc
George Frangeskides, Executive Chairman +44 20 3950 0725
SPARK Advisory Partners Limited (Nomad)
Andrew Emmott +44 20 3368 3555
CMC Markets plc (Broker)
Thomas Smith / Douglas Crippen +44 20 7392 1494
St Brides Partners (Financial PR)
Isabel de Salis / Catherine Leftley alba@stbridespartners.co.uk
Alba's Projects and Investments
Mining Projects Operated Location Ownership
by Alba
Clogau (gold) Wales 100%
----------- ----------
Dolgellau Gold Exploration
(gold) Wales 100%
----------- ----------
Gwynfynydd (gold) Wales 100%
----------- ----------
Investments Held by Alba Location Ownership
----------- ----------
GreenRoc Mining Plc (mining) Greenland 42 .97 %
----------- ----------
Horse Hill (oil) England 11.765%
----------- ----------
UNAUDITED CONSOLIDATED INCOME STATEMENT
FOR THE SIX MONTHSED 31 MAY 2023
Unaudited Unaudited Audited Year
6 months ended 6 months ended 30
31 May 2023 ended 31 Nov 2022
May 2022
GBP'000 GBP'000 GBP'000
Administrative expenses (459) (814) (1,623)
Impairment expense - - (984)
Operating (loss)/profit (459) (814) (2,607)
Revaluation of financial
liability - - 2
Gain on deemed disposal
(dilution) 2,672
Share of loss of associate (110) - -
Finance costs (1) (1) -
---------------- --------------- ---------------
Profit/(loss) before tax 2,102 (815) (2,605)
Taxation - - -
---------------- --------------- ---------------
Profit/(loss) for the
year 2,102 (815) (2,605)
---------------- --------------- ---------------
Attributable to:
Equity holders of the
parent 2,182 (592) (2,039)
Non-controlling interests (80) (223) (566)
---------------- --------------- ---------------
2,102 (815) (2,605)
---------------- --------------- ---------------
Profit/(loss) per ordinary
share
Basic 0.030 pence (0.009) pence (0.031) pence
Diluted 0.028 pence (0.009) pence (0.031) pence
UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 MAY 2023
Unaudited Unaudited Audited Year
6 months ended 6 months ended ended 30
31 May 2023 31 May 2022 Nov 2022
GBP'000 GBP'000 GBP'000
Non-current assets
Property, plant and equipment 144 153 150
Intangible fixed assets 3,214 7,030 8,450
Investment in associate 5,386 - -
Investments - Horse Hill
Developments 2,600 3,385 2,600
Total non-current assets 11,344 10,568 11,200
---------------- ---------------- -------------
Current assets
Trade and other receivables 117 211 129
Cash and cash equivalents 58 2,024 456
---------------- ---------------- -------------
Total current assets 175 2,235 585
---------------- ---------------- -------------
Current liabilities
Trade and other payables (257) (383) (464)
Financial liabilities - (221) -
---------------- ---------------- -------------
Total current liabilities (257) (604) (464)
---------------- ---------------- -------------
Net current assets / (liabilities) (82) 1,631 121
---------------- ---------------- -------------
Net assets 11,262 12,199 11,321
------------------------------------- ---------------- ---------------- -------------
Capital and reserves
Called up share capital 5,076 5,005 5,076
Share premium account 10,461 9,877 10,461
Warrant reserve 782 1,444 1,187
Dilution of ownership reserve - 991 991
Other reserve - 115 136
Retained losses (5,226) (7,958) (8,929)
Foreign currency reserve 169 169 168
------------------------------------- ---------------- ---------------- -------------
Equity attributable to
equity holders of the parent 11,262 9,643 9,090
Non-controlling interests - 2,556 2,231
------------------------------------- ---------------- ---------------- -------------
Total equity 11,262 12,199 11,321
------------------------------------- ---------------- ---------------- -------------
UNAUDITED CONSOLIDATED CASH FLOW STATEMENT
FOR THE SIX MONTHS ENDED 31 MAY 2023
Unaudited Unaudited Audited
6 months 6 months Year ended
ended 31 ended 31 30 Nov 2022
May 2023 May 2022
Cash flows from operating
activities
Operating loss (459) (814) (2,607)
Share based payment charge 21 52 228
Depreciation 6 3 7
Foreign exchange revaluation - 1 -
adjustment
Profit on sales to associate 3
Increase / (decrease) in creditors (207) (288) (208)
(Increase)/ decrease in debtors 12 (33) 49
Deemed disposal of subsidiary
- working capital impact 205
--------- ---------- -------------
Net cash used in operating
activities (419) (984) (1,547)
--------- ---------- -------------
Cash flows from investing
activities
Payments for deferred exploration
expenditure (202) (919) (2,417)
Payments for tangible fixed
assets - (20) (20)
Deemed disposal of subsidiary (98) - -
- cash impact
--------- ---------- -------------
Net cash used in investing
activities (300) (939) (2,437)
--------- ---------- -------------
Cash flows from financing
activities
Proceeds from issue of shares
and warrants - - 522
Cost of issue - - (30)
Group net proceeds from subsidiary 322 - -
issue shares
Finance expense (1) (1) -
Net cash generated from financing
activities 321 (1) 492
--------- ---------- -------------
Net increase in cash and cash
equivalents (398) (1,924) (3,492)
Cash and cash equivalents
at beginning of period 456 3,948 3,948
--------- ---------- -------------
Cash and cash equivalents
at end of period 58 2,024 456
--------- ---------- -------------
NOTES TO THE HALF-YEARLY FINANCIAL INFORMATION
1. Basis of preparation
The Group consolidates the financial statements of the Company
and its subsidiary undertakings.
The financial information has been prepared under the historical
cost convention in accordance with UK-adopted International
Financial Reporting Standards ("IFRS"), International Accountant
Standards ("IAS") and IFRS Interpretations Committee ("IFRIC")
interpretations. The financial information set out in this
half-yearly report does not constitute statutory accounts as
defined in Section 434 of the Companies Act 2006. The same
accounting policies, presentation and methods of computation are
followed in this interim condensed consolidated report as were
applied in the Group's annual financial statements for the year
ended 30 November 2022. The auditor's report on those financial
statements was unqualified and did not contain any statements under
section 498(2) or section 498(3) of the Companies Act 2006.
2. Taxation
No charge for corporation tax for the period has been made due
to the expected tax losses available.
3. Earnings per share
Earnings per share is calculated by dividing the profit
attributable to ordinary shareholders of GBP2,182,000 (May 2022:
loss of GBP592,000; November 2022: loss of GBP2,039,000) by the
weighted average number of shares of 7,121,568,996 in issue during
the period (May 2022: 6,404,645,919; November 2022: 6,476,717,573
).
Diluted earnings per share is calculated by dividing the profit
attributable to ordinary shareholders of GBP2,182,000 by the
weighted average number of shares and warrants in issue during the
period, being 7,831,499,826.
In prior periods the diluted profit per share calculation was
identical to that used for basic loss per share as the exercise of
warrants would have had the effect of reducing the loss per
ordinary share and therefore was not dilutive.
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