TIDMCMET
RNS Number : 9123V
Capital Metals PLC
06 December 2023
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS STIPULATED
UNDER THE UK VERSION OF THE MARKET ABUSE REGULATION NO 596/2014
WHICH IS PART OF ENGLISH LAW BY VIRTUE OF THE EUROPEAN (WITHDRAWAL)
ACT 2018, AS AMED. ON PUBLICATION OF THIS ANNOUNCEMENT VIA A
REGULATORY INFORMATION SERVICE, THIS INFORMATION IS CONSIDERED TO
BE IN THE PUBLIC DOMAIN.
6 December 2023
Capital Metals plc
("Capital Metals" or the "Company")
Unaudited Interim Results for the Six Months Ended 30 September
2023
Capital Metals (AIM: CMET), a mineral sands company approaching
mine development stage at the high-grade Eastern Minerals Project
in Sri Lanka (the "Project"), announces its unaudited results for
the six months ended 30 September 2023 (the "Half Year").
Key Points:
During the Half Year
-- Offtake Memorandum of Understanding ("MoU") signed with LB
Group (002601:SHENZHEN; Market Cap: US$6 billion), the world's No.
1 manufacturer of high-performance titanium dioxide pigments, in
May 2023 to fund the Project into production
o 50/50 Joint Venture ("JV") - LB Group fully funds capex to
1.65Mtpa capacity estimated at US$81m; thereafter funding according
to JV interests
o LB Group guarantees 100% offtake of ilmenite and Heavy Mineral
Concentrate
o Capital Metals receives 50% of profits from start of
production (estimated 12 months after construction starts)
-- Raised gross proceeds of GBP0.86 million through a placing
and subscription for general working capital in June and July
2023
-- Greg Martyr, previously Non-Executive Chairman, appointed as
Executive Chairman in July 2023 concurrent with Michael Frayne
stepping down as CEO and director
-- Significant actions were undertaken during the Half Year to
resolve the illegal suspension of the Industrial Mining Licences
("IMLs"), including:
o Lobbying actions which likely contributed to implementation of
reforms in mineral licensing procedures
o Local legal proceedings to position the Company to uphold its
rights in-country
o Local statutory appeal proceedings to overturn the
cancellation of IMLs
o Preparation for international legal proceedings to position
the Company to prosecute its rights in international arbitration if
necessary
Post Half Year
-- Successful appeal against cancellation of IMLs in October 2023
o IMLs reinstated on 1 December 2023
-- Plans underway for commencement of construction of the Project
-- LB Group offtake MoU moving towards definitive agreement
Greg Martyr, Executive Chairman, commented:
"The illegal actions of the GSMB cost us the best part of a
year, and dilution at undesirable levels. We have come through that
experience intact and with extraordinary upside potential ahead of
us, with a market capitalisation at present of around a tenth of
the independently assessed Base Case discounted NPV of the Project*
. The discussions with LB Group continue to progress positively
towards the creation of a JV that will unlock the funding for the
total capital expenditure for the Project. With 17.2Mt of resource
at 17.6% Total Heavy Minerals, we have one of the highest-grade
heavy mineral sands projects globally, with additional upside not
yet included in the resource that we expect to define from
extensive undrilled lateral and depth extension. We have a very
exciting period ahead with mine construction planning
underway."
*Development Study and Preliminary Economic Assessment - May
2022 (see Company notification of 12 May 2022).
For further information, please contact:
Capital Metals plc Via Vigo Consulting
Greg Martyr (Executive Chairman)
Vigo Consulting (Investor Relations) +44 (0)20 7390 0234
Ben Simons / Peter Jacob capitalmetals@vigoconsulting.com
SPARK Advisory Partners (Nominated
Adviser)
Neil Baldwin / James Keeshan +44 (0)20 3368 3554
Tavira Financial
Jonathan Evans / Oliver Stansfield +44 (0)20 7100 5100
About Capital Metals
Capital Metals is a UK company listed on the London Stock
Exchange (AIM: CMET). We are developing the Eastern Minerals
Project in Sri Lanka, approximately 220km east of Colombo,
containing industrial minerals including ilmenite, rutile, zircon,
and garnet. The Project is one of the highest-grade mineral sands
projects globally, with potential for further grade and resource
expansion. In 2022, a third-party Preliminary Economic Assessment
provided a Project NPV of US$155-235m based on existing resources,
with further identified optimisation potential. We are committed to
applying modern mining practices and bringing significant positive
benefits to Sri Lanka and the local community. We expect over 300
direct new jobs to be created and over US$130m in direct government
royalties and taxes to be paid.
Visit our website:
www.capitalmetals.com
Follow us on social media:
Twitter: @MetalsCapital
LinkedIn: @Capital Metals plc
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.
CHAIRMAN'S STATEMENT
Introduction
I am pleased to present the half year report for the six months
ended 30 September 2023.
This was an extraordinary period during which we had to apply
all available legal and diplomatic pressure-points to resolve the
illegal suspension of the Company's Industrial Mining Licences
("IMLs"). It was a huge achievement when on 1 December 2023 the
IMLs were reinstated following a successful statutory appeal
decision announced on 19 October 2023. To have emerged successfully
from this experience, while at the same time securing an offtake
Memorandum of Understanding ("MoU") with a global leader to fund
the Project into production, is a testament to the perseverance of
our team and the quality of our Project, and I would like to thank
all my colleagues both within and outside Sri Lanka.
Review of Activity
Activity during the Half Year was dominated by the actions to
resolve the illegal suspension of the IMLs. There were broadly
three strands to the strategy: lobbying; the preparation for breach
of international treaty proceedings; and local legal
proceedings.
Lobbying
Lobbying actions were directed towards the Sri Lankan
Government, financial stakeholders such as the International
Monetary Fund, and other diplomatic stakeholders including from the
United Kingdom and Australia, with a view to resolving our issues
amicably with the Geological Survey and Mines Bureau ("GSMB").
We believe our actions had a positive impact, with the conduct
of the chairman of the GSMB and Minister of Environment coming
under intense scrutiny. We were also pleased to note that a Sri
Lankan government cabinet paper setting out a change in mineral
licensing procedures was approved in late July 2023. Pursuant to
this new policy, the Board of Investment of Sri Lanka (the "BOI"),
the investment promotion agency with which we enjoy a constructive
relationship, will now be involved in the appraisal of and
recommendation for the approval of mineral licences. The GSMB, with
which we are also beginning to enjoy a more productive relationship
under its new leadership, will have a continuing role in managing
licences. The Company is in the final stages of establishing a BOI
company which will ultimately hold all its interests in Sri Lanka
and will be afforded the direct protections against nationalisation
under the Constitution of Sri Lanka as well as other fiscal
incentives.
International Proceedings
Preparatory work was undertaken with Boies Schiller Flexner to
pursue a claim, if necessary, against the Government of Sri Lanka
under the Bilateral Investment Treaty agreement between the
Government of the United Kingdom and Northern Ireland and the
Government of Sri Lanka for the promotion and protection of
investments. A Notice of Dispute was sent to the Attorney General
of Sri Lanka pursuant to the treaty and we are reserving our rights
in regards to pursuing this action further.
Local Proceedings
During the Half Year, the Company prepared for the first hearing
in the proceedings issued by the Company in the Court of Appeal of
the Democratic Socialist Republic of Sri Lanka which was held on 29
August 2023. While the main proceedings to overturn the
cancellation of the Company's IMLs will not be required to be
continued following the reinstatement of the IMLs on 1 December
2023, a separate further hearing to receive guidance on any
outstanding matters in connection of the Company's multiple pending
applications for additional IMLs related to the Project is due to
take place on 7 December 2023. These applications were approved by
the GSMB in 2020 and 2021 and have recently been discussed with the
GSMB at length and as a result we are confident of reinstating
these applications in the normal course of business.
Separately, the statutory appeal hearing against the
cancellation of the IMLs was prepared for and heard before the
Secretary to the Ministry of Environment (the "Secretary") on 27
September 2023. The Company's Country Manager and I, as well as our
legal counsel, made submissions in the capacity of the appellant;
while the Chairman, Director General, and other senior officers of
the GSMB and legal counsel appeared for the respondent. The
Director General of the GSMB refused to speak at the statutory
appeal hearing despite all the correspondence regarding the
temporary suspension and notice of cancellation of the IMLs coming
from him, which was noted with some concern by the Secretary.
Offtake MoU
A major achievement during the Half Year was the signing of an
MoU with LB Group (002601:SHENZHEN; Market Cap: US$6 billion), the
world's No. 1 manufacturer of high-performance titanium dioxide
pigments, in May 2023 to fund the Project into production. This MoU
was extended in August 2023 through to 31 December 2023.
Pursuant to the MoU, the parties will form a 50/50 Joint Venture
("JV"), with LB Group fully funding the estimated US$81m capex to
1.65Mtpa production capacity , and thereafter the parties
contributing funding according to their JV interests. LB Group will
guarantee 100% of the offtake of ilmenite and Heavy Mineral
Concentrate and Capital Metals will receive 50% of the profits from
the start of production (estimated 12 months after construction
starts).
The Company and LB Group are now moving towards a definitive
agreement.
Funding
During the Half Year, the Company raised gross proceeds of
GBP500,000 through a placing (the "Placing") as well as an
additional gross GBP364,705 through a subscription (the
"Subscription") for general working capital. The Placing and
Subscription were necessary to secure the Company's ability to
continue its successful actions to resolve the licence issues with
the GSMB and get Project development back on track.
Board Changes
With effect from 1 July 2023, I transitioned from Non-Executive
Chairman to Executive Chairman. I have since spent considerable
time in Sri Lanka, and connecting with stakeholders throughout the
world, lobbying and building relationships which should stand us in
good stead now we are able to get the Project back on track.
Michael Frayne stepped down as Chief Executive Officer and as a
director of the Company at the same time. The Board thanks Michael
for his contributions towards the development of the Project. With
the IML situation resolved, we are now looking to build the team
out to position us to commence construction of the Project as soon
as possible.
Post Half Year
We were encouraged by news in October 2023 that the Supreme
Court in Sri Lanka determined that a decision by the Sri Lanka
Muslim Congress to expel Naseer Ahamad from its party membership to
be legally valid. As a result of his expulsion, Mr Ahamad lost his
parliamentary seat and therefore his position as Minister of
Environment with responsibility for the GSMB. Mr Ahamad and the
Chairman of the GSMB, whom the Minister of Environment appointed to
the position, were named by the Company as respondents in the
Company's local legal proceedings. A New Minister of Environment
has been appointed. The Director General and Chairman of the GSMB
have both subsequently left office and a new Chairman and Acting
Director General were appointed at the GSMB last month, both of
whom the Company has recently met with on several occasions.
The most significant development was announced on 19 October
2023 when, having considered the written and oral submissions, the
Secretary determined that the cancellation of the IMLs was not
correct and ordered the GSMB to reissue the IMLs to the Company's
Sri Lankan subsidiary, Damsila Exports (Pvt) Limited. In his
decision, the Secretary criticised the conduct of the GSMB noting
that it had violated certain provisions within the Mines and
Minerals Act in its suspension and cancellation of the IMLs.
This cleared the path for the Company to start work towards
finalising an offtake and financing agreement with LB Group and
resuming mine construction planning - with both workstreams now in
full swing.
The IMLs were reinstated on 1 December 2023.
Outlook
The illegal actions of the GSMB cost us the best part of a year,
and dilution of shareholders at undesirable levels, given the
consequent requirement to raise equity finance during the period.
We have come through that experience intact and with extraordinary
upside potential ahead of us, with a market capitalisation at
present of around a tenth of the independently assessed Base Case
discounted NPV of the Project ( Development Study and Preliminary
Economic Assessment - May 2022). The discussions with LB Group
continue to progress positively towards the creation of a JV that
will unlock the funding for the total capital expenditure for the
Project. With 17.2Mt of resource at 17.6% Total Heavy Minerals, we
have one of the highest-grade heavy mineral sands projects
globally, with additional upside not yet included in the resource
that we expect to define from extensive undrilled lateral and depth
extension. We have a very exciting period ahead with mine
construction planning underway.
Greg Martyr
Executive Chairman
6 December 2023
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
6 months 6 months
to 30 September to 30 September
2023 Unaudited 2022 Unaudited
Notes $ $
------------------------------------------ ------ ----------------- -----------------
Continuing operations
Revenue - -
Administration expenses (384,470) (382,400)
Share based payments (19,149) -
Foreign exchange (4,571) 1,681
Operating loss (408,190) (380,719)
------------------------------------------ ------ ----------------- -----------------
Finance income 558 2,531
------------------------------------------ ------ ----------------- -----------------
Loss before income tax (407,632) (378,188)
------------------------------------------ ------ ----------------- -----------------
Income tax - -
------------------------------------------ ------ ----------------- -----------------
Loss for the period (407,632) (378,188)
------------------------------------------ ------ ----------------- -----------------
Other comprehensive income
Items that may be reclassified to profit
or loss
Currency translation differences 79,989 (1,064,932)
Total comprehensive loss for the period (327,643) (1,443,120)
------------------------------------------ ------ ----------------- -----------------
Basic and diluted 5 (0.069)p (0.069)p
------------------------------------------ ------ ----------------- -----------------
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at As at As at
30 September 31 March 30 September
2023 Unaudited 2023 Audited 2022 Unaudited
Notes $ $ $
------------------------------------- -------- ---------------- -------------- ----------------
Non-Current Assets
Property, plant and equipment 22,569 25,591 23,396
Other loans 131,730 125,371 -
Intangible assets 6 4,707,101 4,451,811 4,061,939
4,861,400 4,602,773 4,085,335
------------------------------------- -------- ---------------- -------------- ----------------
Current Assets
Trade and other receivables 109,035 40,017 61,475
Cash and cash equivalents 501,225 216,213 812,246
------------------------------------- -------- ---------------- -------------- ----------------
610,260 256,230 873,721
------------------------------------- -------- ---------------- -------------- ----------------
Total Assets 5,471,660 4,859,003 4,959,056
------------------------------------- -------- ---------------- -------------- ----------------
Non-Current Liabilities
Trade and other payables 600,000 600,000 600,000
------------------------------------- -------- ---------------- -------------- ----------------
600,000 600,000 600,000
------------------------------------- -------- ---------------- -------------- ----------------
Current Liabilities
Trade and other payables 731,180 841,891 731,711
731,180 841,891 731,711
------------------------------------- -------- ---------------- -------------- ----------------
Total Liabilities 1,331,180 1,441,891 1,331,711
------------------------------------- -------- ---------------- -------------- ----------------
Net Assets 4,140,480 3,417,112 3,627,345
------------------------------------- -------- ---------------- -------------- ----------------
Capital and Reserves Attributable
to
Equity Holders of the Company
Share capital 7 6,278,412 6,062,403 6,062,403
Share premium 7 49,767,108 48,946,676 48,946,676
Capital contribution and contingent
shares 3,218,750 3,218,750 3,218,750
Other reserves (40,046,992) (39,136,359) (39,790,729)
Retained losses (14,968,789) (15,570,928) (14,809,755)
Non-controlling interest (108,009) (103,430) -
------------------------------------- -------- ---------------- -------------- ----------------
Total Equity 4,140,480 3,417,112 3,627,345
------------------------------------- -------- ---------------- -------------- ----------------
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS'
EQUITY
Attributable to owners of
the Parent
------ ---------- ----------- --------------------------------------------------------- ---------------- ------------
Share Share Capital Other Retained Total Non-controlling Total
Note capital premium contribution reserves losses equity interest equity
$ $ and $ $ $ $ $
contingent
shares
$
---------- ------------ ---------------- ------------
Balance as at 1
April 2022 6,062,403 48,946,676 3,218,750 (38,725,797) (14,431,567) 5,070,465 - 5,070,465
----------------------- ---------- ----------- ------------- ------------- ------------- ------------ ---------------- ------------
Loss for the period - - - - (378,188) (378,188) - (378,188)
Other comprehensive
income for the period - - - (1,064,932) - (1,064,932) - (1,064,932)
----------------------- ---------- ----------- ------------- ------------- ------------- ------------ ---------------- ------------
Total comprehensive
loss for the period - - - (1,064,932) (378,188) (1,443,120) - (1,443,120)
Total - - - - - - - -
transactions
with owners,
recognised
in equity
--------------- ------ ---------- ----------- ------------- ------------- ------------- ------------ ---------------- ------------
Balance as at 30
September 2022 6,062,403 48,946,676 3,218,750 (39,790,729) (14,809,755) 3,627,345 - 3,627,345
----------------------- ---------- ----------- ------------- ------------- ------------- ------------ ---------------- ------------
Balance as at 1
April 2023 6,062,403 48,946,676 3,218,750 (39,136,359) (15,570,928) 3,520,542 (103,430) 3,417,112
----------------------- ---------- ----------- ------------- ------------- ------------- ------------ ---------------- ------------
Loss for the period - - - - (407,632) (407,632) - (407,632)
Other comprehensive
loss for the period - - - 79,989 - 79,989 - 79,989
----------------------- ---------- ----------- ------------- ------------- ------------- ------------ ---------------- ------------
Total comprehensive
loss for the period - - - 79,989 (407,632) (327,643) - (327,643)
----------------------- ---------- ----------- ------------- ------------- ------------- ------------ ---------------- ------------
Shares issued 216,009 864,036 - - - 1,080,045 - 1,080,045
Cost of capital - (43,604) - - - (43,604) - (43,604)
Grant of options
& warrants - - - 19,149 - 19,149 - 19,149
Cancelled options - - - (1,009,771) 1,009,771 - - -
Foreign exchange
movements on NCI - - - - - - (4,579) (4,579)
----------------------- ---------- ----------- ------------- ------------- ------------- ------------ ---------------- ------------
Total transactions
with owners,
recognised
in equity 216,009 820,432 - (990,622) 1,009,771 1,055,590 (4,579) 1,051,011
----------------------- ---------- ----------- ------------- ------------- ------------- ------------ ---------------- ------------
Balance as at 30
September 2023 6,278,412 49,767,108 3,218,750 (40,046,992) (14,968,789) 4,248,489 (108,009) 4,140,480
----------------------- ---------- ----------- ------------- ------------- ------------- ------------ ---------------- ------------
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
6 months 6 months
to 30 September to 30 September
2023 2022 Unaudited
Notes Unaudited $
$
------------------------------------------- -------- ----------------- -----------------
Cash flows from operating activities
Loss before taxation (407,632) (378,188)
Adjustments for:
Share based payments 19,149 -
Depreciation 3,782 3,196
Interest income (470) (2,518)
(Increase) in trade and other receivables (73,063) (25,823)
(Decrease)/increase in trade and other
payables (110,713) 6,017
Foreign exchange 3,221 46,117
Net cash used in operations (565,726) (351,199)
-------------------------------------------- -------- ----------------- -----------------
Cash flows from investing activities
Purchase of property, plant and equipment (262) (3,376)
Disposal of property, plant and equipment 423 -
Exploration and evaluation activities 6 (183,438) (368,585)
Interest received 470 2,518
-------------------------------------------- -------- ----------------- -----------------
Net cash used in investing activities (182,807) (369,443)
-------------------------------------------- -------- ----------------- -----------------
Cash flows from financing activities - -
Proceeds from share issues 7 1,080,045 -
Cost of share issues 7 (43,604) -
-------------------------------------------- -------- ----------------- -----------------
Net cash generated from financing
activities 1,036,441 -
------------------------------------------- -------- ----------------- -----------------
Net increase/(decrease) in cash and
cash equivalents 287,908 (720,642)
Exchange differences on cash (2,896) (242,866)
Cash and cash equivalents at beginning
of period 216,213 1,775,754
Cash and cash equivalents at end of
period 501,225 812,246
-------------------------------------------- -------- ----------------- -----------------
NOTES TO THE INTERIM FINANCIAL STATEMENTS
1. General Information
Capital Metals plc is a mineral exploration company with its
shares admitted to trading on the AIM 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
05555087. The Company's registered office is 6 Heddon Street,
London, W1B 4BT.
2. Basis of Preparation
The condensed consolidated interim financial statements have
been prepared in accordance with the requirements of the AIM Rules
for Companies. As permitted, the Company has chosen not to adopt
IAS 34 "Interim Financial Statements" in preparing this interim
financial information. The condensed interim financial statements
should be read in conjunction with the annual financial statements
for the year ended 31 March 2023, which have been prepared in
accordance with UK adopted international accounting standards.
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 UK
adopted international accounting standards.
Statutory financial statements for the year ended 31 March 2023
were approved by the Board of Directors on 14 September 2023 and
delivered to the Registrar of Companies. The report of the auditors
on those financial statements was unqualified with a material
uncertainty in relation to the Company's ability to continue as a
going concern. The condensed interim financial statements are
unaudited and have not been reviewed by the Company's auditor.
Going concern
These financial statements have been prepared on the going
concern basis. Given the Group's current cash position and its
demonstrated ability to raise capital, the Directors have a
reasonable expectation that the Group has adequate resources to
continue in operational existence for the foreseeable future. Thus,
they continue to adopt the going concern basis of accounting
preparing the condensed interim financial statements for the period
ended 30 September 2023.
Notwithstanding the above, a material uncertainty exists that
may cast significant doubt on the Group and Parent Company's
ability to continue as a going concern, due to low cash at the
period end and further funding being required to continue
activities in particular to prepare for project construction to
commence , and therefore, the Group and Parent Company may be
unable to realise their assets or settle their liabilities in the
ordinary course of business. As a result of their review, and
despite the aforementioned material uncertainty, the Directors have
confidence in the Group and Parent Company's forecasts and have a
reasonable expectation that the Group and Parent Company will
continue in operational existence for the going concern assessment
period and have therefore used the going concern basis in preparing
these consolidated and Parent Company financial statements.
The factors that were extant at 31 March 2023 are still relevant
to this report and as such reference should be made to the going
concern note and disclosures in the 2023 Annual Report and
Financial Statements ("2023 Annual Report").
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 2023 Annual Report,
a copy of which is available on the Company's website:
www.capitalmetals.com . The key financial risks are liquidity risk,
credit risk, market 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 the 2023 Annual Report. 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
year ended 31 March 2023.
3.1 Changes in accounting policy and disclosures
(a) New and amended standards adopted by the Group and
Company
A number of new and amended standards and interpretations issued
by the International Accounting Standards Board (IASB) have become
effective for the first time for financial periods beginning on (or
after) 1 April 2023 and have been applied by the Company and Group
in these interim financial statements. None of these new and
amended standards and interpretations had a significant effect on
the Company or Group because they are either not relevant to the
Company or Group's activities or require accounting which is
consistent with the Company or Group's current accounting policies
.
(b) New standards, amendments and Interpretations in issue but
not yet effective or not yet endorsed and not early adopted
There are a number of standards, amendments to standards, and
interpretations which have been issued by the IASB that are
effective in future accounting periods and which have not been
adopted early.
4. Dividends
No dividend has been declared or paid by the Company during the
six months ended 30 September 2023 (six months ended 30 September
2022: $nil).
5. Earnings per Share
The calculation of earnings per share is based on a retained
loss of $407,632 for the six months ended 30 September 2023 ( six
months ended 30 September 2022: loss $ 378,188 ) and the weighted
average number of shares in issue in the period ended 30 September
2023 of 587,667,812 ( six months ended 30 September 2022:
545,380,934 ).
No diluted earnings per share is presented for the six months
ended 30 September 2023 or six months ended 30 September 2022 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:
Exploration & Evaluation at Cost and Net Book Value $
----------------------------------------------------- ----------
Balance as at 1 April 2023 4,451,811
Additions 183,438
Foreign exchange 71,852
As at 30 September 2023 4,707,101
----------------------------------------------------- ----------
7. Share capital and premium
Group and Company Number of shares Share capital
---------------------------- --------------------
No. Nominal GBP $
value
---------------------------- ------------ --------- ------------ -----------
Ordinary shares 277,621,598 0.0020 555,243 726,412
Deferred shares 356,277,502 0.0099 3,527,147 5,552,000
Total 633,899,100 4,082,390 6,278,412
---------------------------- ------------ --------- ------------ -----------
Number of Share
Issued at 0.02 pence per Ordinary capital Share premium Total
share shares $ $ $
---------------------------- ------------ --------- -------------- ------------
As at 31 March 2023 189,103,432 510,403 48,946,676 49,457,079
---------------------------- ------------ --------- -------------- --------------
Issue of shares 50,000,000 122,014 488,056 610,070
---------------------------- ------------ --------- -------------- --------------
Cost of capital - - (35,772) (35,772)
---------------------------- ------------ --------- -------------- --------------
Issue of shares 36,470,566 88,998 355,993 444,991
---------------------------- ------------ --------- -------------- --------------
Cost of capital - - (7,832) (7,832)
---------------------------- ------------ --------- -------------- --------------
Issue of shares 2,047,600 4,997 19,987 24,984
---------------------------- ------------ --------- -------------- --------------
As at 30 September 2023 277,621,598 726,412 49,767,108 50,493,520
---------------------------- ------------ --------- -------------- ------------
On 20 June 2023, the Company issued 50,000,000 new ordinary
shares of 0.2 pence at a price of 1p per share for gross proceeds
of GBP500,000.
On 17 July 2023, the Company issued 36,470,566 new ordinary
shares of 0.2 pence at a price of 1p per share for gross proceeds
of GBP364,705.
On 1 August 2023, the Company issued 2,047,600 ordinary shares
of 0.2 pence each at a price of 1p per share to various service
providers as consideration for services rendered.
On 1 August 2023, the Company granted 11,050,000 share options
to certain directors, employees and consultants and 1,000,000
warrants to various service providers and cancelled 8,750,000
historical share options.
Deferred Shares (nominal value of 0.0099 Number of Deferred Share capital
pence per share) shares $
-------------------------------------------- ------------------- --------------
As at 31 March 2023 356,227,502 5,552,000
-------------------------------------------- ------------------- --------------
As at 30 September 2023 356,227,502 5,552,000
-------------------------------------------- ------------------- --------------
8. Events after the balance sheet date
In October 2023 it was announced the Company had received a
favourable decision from the statutory appeal hearing against the
notice of cancellation of Industrial Mining Licences 16236 and
16237 (the "IMLs") which were issued in May 2023 by the Geological
Survey and Mines Bureau (the "GSMB"). The Statutory Appeal was
heard before the Secretary to the Ministry of Environment on 27
September 2023. Having considered the written and oral submissions,
the Secretary determined that the cancellation of the IMLs was not
correct and ordered the GSMB to reissue the IMLs to the Company's
Sri Lankan subsidiary, Damsila Exports (Pvt) Limited.
On 23 October 2023, the Company issued 1,625,000 new ordinary
shares pursuant to the exercise of 1p warrants issued in connection
with the Placing announced in June 2023.
On 1 December 2023 it was announced that the GSMB had formally
reinstated the IMLs to the Company's Sri Lankan subsidiary, Damsila
Exports (Pvt) Limited.
9. Approval of interim financial statements
The Condensed interim financial statements were approved by the
Board of Directors on 6 December 2023.
10. Availability of interim financial statements
Copies of these interim financial statements are available from
the Capital Metals website at www.capitalmetals.com.
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IR FLFFVFDLRIIV
(END) Dow Jones Newswires
December 06, 2023 08:35 ET (13:35 GMT)
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