TIDMARK
RNS Number : 5823N
Arkle Resources PLC
26 September 2023
26(th) September 2023
Arkle Resources PLC
("Arkle" or the "Company")
Interim Statement for the period ended 30 June 2023
Chairman's Statement
Arkle continues to make progress on the main business of the
Company, mineral exploration. Our partner in the Stonepark zinc
project in Ireland has confirmed their intention to drill a deep
hole on a good zinc target discovered in 2022. We will shortly
undertake a short drilling programme on our Donegal gold licence.
Finally, we continue to review a number of overseas investment
opportunities, particularly in lithium.
Zinc
For the first time since 1965 there is no zinc production in
Ireland due, I hope, to the temporary closure of the Tara Mine in
Navan. For almost 60 years, Ireland was a world ranking zinc
producer. Known as a zinc province, Ireland was, and still is,
highly prospective for zinc.
The Glencore discovery at Pallas Green and the Tara Deep
discovery are each world class undeveloped discoveries. We believe
the three discoveries at Stonepark, Carrickittle and Ballywire
close to the Pallas Green deposit certainly have the makings of
another large discovery. The demand for zinc from emerging markets
is strong. The zinc price is also strong. But ever-growing capital
costs, more and more regulations and the huge rise in recent energy
prices have made new projects less economical. As someone actively
involved in Irish zinc since the late 1960s, I hope that the Tara
closure is temporary.
Our partner, Group Eleven, is the operator on our Stonepark
group of five licences. They keep the licences in good standing.
They have a number of good drill targets in the Stonepark -
Carrickittle - Ballywire corridor. Stonepark is not their top
priority. We have maintained our 23.44% interest and have informed
Group Eleven that we will participate in the deep hole on Stonepark
- when they decide to drill it.
Gold
We hold five licences in the Wicklow / Wexford area in Ireland
and one prospective licence in Donegal. We have drill ready targets
on the Donegal ground which we will shortly drill. Let me remind
shareholders that the Donegal geology is similar to that in the
multimillion ounce Dalradian gold discovery in Tyrone. The
Dalradian discovery is privately owned.
Over the years, repeated exploration programmes have identified
high grade gold in the Wicklow hills. The gold is in veins, often
very narrow and nuggety so one hole can hit a nugget giving very
high grades whilst the next hole either misses the narrow vein or
finds no nuggets and so delivers a low or non-existent grade.
The area needs an intensive drilling programme and Arkle needs a
farm out partner to carry most of the cost. The present difficult
fundraising environment on the AIM market for explorers makes this
difficult.
Lithium
There is lithium in the Wicklow granites. This has been known
for decades but until recently lithium in spodumene / pegmatite
rocks was not viable. The race to electrify cars and increase
battery storage to assist wind and solar projects has greatly
increased the demand for lithium. Arkle has undertaken two
prospecting programmes in the southern part of the block. Lithium
was found but the results were spotty. It needs further work.
We have applied for additional licences in the area.
Other Activities
Given the poor market perception of Irish zinc and gold
interests it was decided to look at opportunities outside
Ireland.
In the first instance we are looking at lithium projects. In
June 2022, we announced the award of licences in Zimbabwe. However,
there are difficulties there with title, so the work is paused at
present.
In another jurisdiction, we are progressing the acquisition of
two licence blocks which may contain lithium, although no previous
exploration for this mineral has been carried out on these
blocks.
The board has also examined a number of proposals in gold, base
metals and rare earths. None have progressed passed due diligence.
The programme to find new opportunities is ongoing.
John Teeling
Chairman
25(th) September 2023
Market Abuse Regulation (MAR) Disclosure
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.
Enquiries:
Arkle Resources PLC
John Teeling, Chairman +353 (0) 1 833 2833
Jim Finn, Finance Director +353 (0) 1 833 2833
SP Angel Corporate Finance LLP
Nominated Advisor & Joint Broker
Matthew Johnson/Adam Cowl +44 (0) 203 470 0470
First Equity Limited
Joint Broker
Jason Robertson +44 (0) 207 374 2212
BlytheRay
Megan Ray +44 (0) 207 138 3204
Teneo
Luke Hogg +353 (0) 1 661 4055
Alan Tyrrell
Arkle Resources plc
Financial Information (Unaudited)
Condensed Consolidated Statement of Comprehensive Income Six Months Ended Year Ended
30 June 23 30 June 22 31 Dec 22
unaudited unaudited audited
EUR'000 EUR'000 EUR'000
Administrative expenses (150) (139) (303)
- - -
----------- ----------- -----------
OPERATING LOSS (150) (139) (303)
Profit/(Loss) due to fair value volatility of warrants 117 160 4
----------- ----------- -----------
PROFIT/(LOSS) BEFORE TAXATION (33) 21 (299)
Income tax expense - - -
PROFIT/(LOSS) FOR THE PERIOD AND TOTAL COMPREHENSIVE INCOME (33) 21 (299)
=========== =========== ===========
PROFIT/(LOSS) PER SHARE - basic and diluted (0.01) c 0.01c (0.09) c
=========== =========== ===========
Condensed Consolidated Statement of Financial Position 30 June 23 30 June 22 31 Dec 22
unaudited unaudited audited
EUR'000 EUR'000 EUR'000
NON-CURRENT ASSETS
Intangible Assets 4,026 3,949 3,991
----------- ----------- -----------
CURRENT ASSETS
Other receivables 16 24 7
Cash and cash equivalents 63 120 200
----------- ----------- -----------
79 144 207
----------- ----------- -----------
TOTAL ASSETS 4,105 4,093 4,198
----------- ----------- -----------
LIABILITIES
CURRENT LIABILITIES
Trade and other payables (383) (287) (326)
Warrants (39) - (156)
----------- ----------- -----------
(422) (287) (482)
----------- ----------- -----------
NET CURRENT LIABILITIES (343) (143) (275)
NET ASSETS 3,683 3,806 3,716
=========== =========== ===========
EQUITY
Share Capital - Deferred Shares 992 992 992
Share Capital - Ordinary Shares 988 864 988
Share Premium 6,923 6,817 6,923
Share based payments reserve 156 156 156
Retained deficit (5,376) (5,023) (5,343)
TOTAL EQUITY 3,683 3,806 3,716
=========== =========== ===========
Condensed Consolidated Statement of Changes in Shareholders Equity
Called-up Called-up
Share Share Share
Capital Capital Share Based Retained
Deferred Ordinary Premium Reserves Deficit Total
EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000
As at 1 January 2022 992 765 6,680 156 (5,044) 3,549
Shares issued - 99 137 - - 236
Profit for the period - - - - 21 21
As at 30 June 2022 992 864 6,817 156 (5,023) 3,806
------------- ------------- ---------- --------- --------- --------
Shares issued - 124 106 - 230
Loss for the period - - - - (320) (320)
As at 31 December 2022 992 988 6,923 156 (5,343) 3,716
------------- ------------- ---------- --------- --------- --------
Loss for the period - - - - (33) (33)
As at 30 June 2023 992 988 6,923 156 (5,376) 3,683
============= ============= ========== ========= ========= ========
Six Months Ended Year Ended
30 June 23 30 June 22 31 Dec 22
Condensed Consolidated Cash Flow unaudited unaudited audited
EUR'000 EUR'000 EUR'000
CASH FLOW FROM OPERATING ACTIVITIES
Loss for the year (33) 21 (299)
Share based payments charge - - 0
Fair value movement of warrants (117) (160) (4)
Foreign exchange (4) 7 12
----------- ----------- -----------
(154) (132) (291)
Movements in working capital 48 61 117
----------- ----------- -----------
NET CASH USED IN OPERATING ACTIVITIES (106) (71) (174)
CASH FLOW FROM INVESTING ACTIVITIES
Payments for exploration and evaluation (35) (118) (160)
----------- ----------- -----------
NET CASH USED IN INVESTING ACTIVITIES (35) (118) (160)
----------- ----------- -----------
CASH FLOW FROM FINANCING ACTIVITIES
Proceeds from issue of equity shares 0 236 466
----------- ----------- -----------
NET CASH FROM FINANCING ACTIVITIES 0 236 466
----------- ----------- -----------
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS (141) 47 132
Cash and Cash Equivalents at beginning of the period 200 80 80
Effects of exchange rate changes on cash held in foreign currencies 4 (7) (12)
CASH AND CASH EQUIVALENTS AT OF THE PERIOD 63 120 200
=========== =========== ===========
Notes:
1. INFORMATION
The financial information for the six months ended 30 June 2023
and the comparative amounts for the six months ended 30 June 2022
are unaudited.
The interim financial statements have been prepared in
accordance with IAS 34 Interim Financial Reporting as adopted by
the European Union. The interim financial statements have been
prepared applying the accounting policies and methods of
computation used in the preparation of the published consolidated
financial statements for the year ended 31 December 2022.
The interim financial statements do not include all of the
information required for full annual financial statements and
should be read in conjunction with the audited consolidated
financial statements of the Group for the year ended 31 December
2022, which are available on the Company's website
www.arkleresources.com
The interim financial statements have not been audited or
reviewed by the auditors of the Group pursuant to the Auditing
Practices board guidance on Review of Interim Financial
Information.
2. No dividend is proposed in respect of the period.
3. EARNINGS PER SHARE
Basic earnings per share is computed by dividing the profit
after taxation for the year attributable to ordinary shareholders
by the weighted average number of ordinary shares in issue and
ranking for dividend during the year. Diluted earnings per share is
computed by dividing the profit after taxation for the year by the
weighted average number of ordinary shares in issue, adjusted for
the effect of all dilutive potential ordinary shares that were
outstanding during the year.
The following table sets out the computation for basic and
diluted earnings per share (EPS):
30 June 23 30 June 22 31 Dec 22
Profit/(loss) per share - Basic and Diluted (0.01) c 0.01c (0.09) c
=============== =============== ================
Basic profit/(loss) per share
The earnings and weighted average number of ordinary shares used in the calculation of basic
loss per share are as follows:
EUR'000 EUR'000 EUR'000
Profit for the year attributable to equity holders (33) 21 (299)
=============== =============== ================
Denominator Number Number Number
For basic and diluted EPS 395,382,426 330,296,947 343,481,056
=============== =============== ================
Basic and diluted loss per share are the same as the effect of
the outstanding share options is anti-dilutive.
4. INTANGIBLE ASSETS
30 June 23 30 June 22 31 Dec 22
Exploration and evaluation assets: EUR'000 EUR'000 EUR'000
Cost at 1 January 3,991 3,831 3,831
Additions 35 118 160
Closing Balance 4,026 3,949 3,991
=========== =========== ==========
In 2007 the Group entered into an agreement with Teck Cominco
which gave Teck Cominco the option to earn a 75% interest in a
number of other licences held by the Group. Teck Cominco had to
spend CAD$3m to earn the interest. During 2012 the relevant
licences were transferred to a new company, TILZ Minerals Limited,
which at 30 June 2022 was owned 23.44% (2021: 23.44%) by Limerick
Zinc Limited (subsidiary of Arkle Resources plc) and 76.56% (2021:
76.56%) by Group Eleven Resources Corp (third party).
On 13 September 2017 t he board of Arkle Resources plc were
informed that Group Eleven Resources Corp. a private company, has
acquired the 76.56% interest held by Teck Ireland in TILZ Minerals.
Arkle Resources plc owns the remaining 23.44%.
The Group's share of expenditure on the licences continues to be
capitalised as an exploration and evaluation asset. The Group is
subject to cash calls from Group Eleven Resources Corp. in respect
of the financing of the ongoing exploration an d evaluation of
these licences. In the event that the Group decides not to meet
these cash calls its interest in TILZ Minerals Limited may be
diluted accordingly.
On 23 June 2022 the Company was granted three licences covering
163 hectres to prospect for Lithium in the Insiza District of the
Matabeleland South Province of Zimbabwe. The directors believe that
these licences, which cover a small area, represent a low-cost
entry into one of the largest lithium producing countries in the
world.
The realisation of the intangible assets is dependent on the
discovery and successful development of economic reserves which is
subject to a number of risks as outlined below. Should this prove
unsuccessful the carrying value included in the balance sheet would
be written off to the statement of comprehensive income.
The group's activities are subject to a number of significant
potential risks including;
- Uncertainties over development and operational risks;
- Compliance with licence obligations;
- Ability to raise finance to develop assets;
- Liquidity risks; and
- Going concern risks.
The directors are aware that by its nature there is an inherent
uncertainty in such exploration and evaluation expenditure as to
the value of the asset. Having reviewed the carrying value of
exploration and evaluation of assets at 30 June 2023, the directors
are satisfied that the value of the intangible asset is not less
than carrying value.
30 June 23 30 June 22 31 Dec 22
Segmental Analysis EUR'000 EUR'000 EUR'000
Limerick 1,705 1,698 1,705
Rest of Ireland 2,297 2,243 2,274
Zimbabwe 24 8 12
----------- ----------- ----------
Closing Balance 4,026 3,949 3,991
=========== =========== ==========
5. SHARE CAPITAL AND SHARE PREMIUM
2022 2021
EUR'000 EUR'000
Authorised
1,000,000,000 Ordinary shares of 0.25c each 2,500 2,500
500,000,000 Deferred shares of 0.75c each 3,750 3,750
-------------- --------------
6,250 6,250
============== ==============
Share Capital Share Premium
EUR'000 EUR'000
Number
Deferred Shares - nominal value of 0.75c 132,311,593 992 -
============ ============== ==============
Share Capital Share Premium
Ordinary Shares - nominal value of 0.25c EUR'000 EUR'000
Number
Allotted, Called Up and Fully Paid:
Balance at 1 January 2022 305,982,426 765 6,680
Issued during the period 39,400,000 99 137
Balance at 30 June 2022 345,382,426 864 6,817
Issued during the period 50,000,000 124 106
------------ -------------- --------------
Balance at 31 December 2022 395,382,426 988 6,923
Issued during the period - - -
Balance at 30 June 2023 395,382,426 988 6,923
============ ============== ==============
Movement in shares
There was no movement in shares in the current period.
6. SHARE BASED PAYMENTS - OPTIONS
Equity-settled share-based payments are measured at fair value
at the date of grant.
The Group plan provides for a grant price equal to the average
quoted market price of the ordinary shares on the date of
grant.
30 Jun 23 Weighted average 30 Jun22 Weighted average 31 Dec 22 Weighted average
exercise price in exercise price in exercise price in
pence pence pence
'000 '000 '000
Outstanding at
beginning of
period 16,100 1.32 16,100 1.32 16,100 1.32
Granted during the - - - - -
period
Expired during the - - - - -
period
---------- ------------------- --------- ------------------- ---------- -------------------
Outstanding at end
of period 16,100 1.32 16,100 1.32 16,100 1.32
========== =================== ========= =================== ========== ===================
Exercisable at end
of period 16,100 1.32 16,100 1.32 16,100 1.32
========== =================== ========= =================== ========== ===================
7. SHARE BASED PAYMENTS - WARRANTS
Fair Value
30 June 23 30 June 22 31 Dec 22
EUR'000 EUR'000 EUR'000
At beginning of period 156 160 -
Issued during the period - - 156
Expired during the period - (4) -
Exercised during the period - (72) -
Movement in fair value (117) (84) -
----------- ----------- ----------
Closing Balance 39 - 156
=========== =========== ==========
30 June 23 30 June 22 31 Dec 22
EUR'000 EUR'000 EUR'000
Profit/(Loss) due to Fair Value Volatility of Warrants
Fair Value at 1 January 156 160 160
Less Fair Value at end of period 39 - 156
Movement for the period 117 160 4
=========== =========== ==========
Number
30 June 23 30 June 22 31 Dec 22
'000 '000 '000
Outstanding at beginning of period 50,000 110,463 69,063
Granted during the period - - 50,000
Exercised during the period - (39,400) -
Expired during the period - (2,000) (69,063)
----------- ----------- ----------
Closing Balance 50,000 69,063 50,000
=========== =========== ==========
On 1 January 2023 a total of 50,000,000 warrants with an
exercise price of 0.5p per warrant and a fair value of EUR155,690
were outstanding. These warrants have an expiry date of 24 November
2024. The movement in fair value for the period to 30 June 2033 of
EUR117,330 was expensed to the Consolidated Statement of
Comprehensive Income. The fair value was calculated using the
Black-Scholes valuation model.
8. POST BALANCE SHEET EVENTS
There are no material post balance sheet events affecting the
Company.
9. The Interim Report for the six months to 30 June 2023 was
approved by the Directors on 25(th) September 2023.
10. The Interim Report will be available on Arkle Resources
PLC's website www.arkleresources.com
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IR MZGZLVKKGFZM
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September 26, 2023 02:00 ET (06:00 GMT)
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