TIDMORCP
RNS Number : 3799M
Oracle Power PLC
21 September 2021
21 September 2021
Oracle Power PLC
("Oracle", the "Company" or the "Group")
Unaudited Interim Results for the six months to 30 June 2021
Oracle Power PLC (AIM: ORCP), the international natural
resources project developer, today announces its unaudited interim
results for the six months ended 30 June 2021.
Chairman's Statement for the six months to 30 June 2021
I present the Company's interim results for the six months ended
30 June 2021.
Summary of Results
We are now a multi - project company with two Gold tenements in
Western Australia and the Thar coal project for both power and Urea
in Pakistan. As is to be expected for a project development company
with three projects being delivered, our financial results for the
six months to the 30 June 2021 show a loss for the period after
taxation for the Group of GBP301,971 (2020: GBP364,300). At the
period end, the Group had cash and cash equivalents of GBP975,820
(2020: GBP688,067 and total assets less current liabilities of
GBP6,009,841 (2020: GBP5,699,309).
Board and Management Changes
We were delighted to welcome David Hutchins to the Board in
March 2021 as a Non-Executive Director. David is a highly
experienced corporate mining and commodities professional with more
than 30 years in the industry. During his career he has held
several executive roles for both listed and private companies and
is currently the Chair of the FTSE Gold Mines Index Committee.
Oracle is making this appointment now as we look to the development
of our two Gold tenements at Jundee East and the Northern Zone
Project in Western Australia where we believe his experience will
prove a significant asset to the Company and provide genuine
technical asset-level understanding, complimenting the expertise
already within the Company and amongst its project partners.
Operational Update
Australia
We hold two highly prospective gold assets in a globally
significant gold region of Western Australia. The Northern Zone
Project is located 25km east of the major gold mining centre of
Kalgoorlie, the home of the 'Super Pit' mine, the second largest
gold mine in Australia, and the Jundee East Gold Project is located
around 9km east of Northern Star's Jundee Gold Mine, one of
Australia's largest gold mines.
Pakistan
The Pakistan authorities continue to work with the Chinese
Government through the China-Pakistan Economic Corridor ("CPEC").
We keep closely in touch with the Government of Pakistan at both
federal and provincial, levels to ensure the continued support for
our Thar Project.
Ms Memon, the Chief Executive Officer, has prepared a separate
operational update which you will find below.
Going Concern
The Company raised GBP215,000 gross in the first half of 2021
pursuant to the exercise of warrants and conversion of a portion of
the share subscription advance. Post period end, the Company
announced a further GBP200,000 conversion of the subscription
advance. Given this and the period end cash reserves of GBP975,820,
the Board feels comfortable from a financial position
standpoint.
Conclusion
The Board extends its appreciation to the Thar Coal and Energy
Board and the Energy Department, Government of Sindh, as well as
the Ministry of Energy (Power Division) Government of Pakistan for
their continued support. The Board also continues to be very
grateful for the patience and support of the Company's
shareholders.
Mark W. Steed
Chairman of the Board - Oracle Power PLC
Date: 20 September 2021
Chief Executive Officer's statement for the six months ended 30
June 2021
In the first half of 2021, we enhanced our managerial and
development capacity, enabling us to progress the on ground
exploration activities of our assets, enhance the scope of our
existing projects, and also assess other opportunities in the
natural resources and power sector.
Review of operations
Pakistan
During this period, we actively began the pursuit of an
alternate use for Thar coal at our 66 square km Block VI in Thar.
The Company drafted a proposed commercial policy for Coal to
Gas/Liquid and submitted it to the Ministry of Energy, Petroleum
Division. Subsequently, the Company along with its Block VI
development consortium, hosted a stakeholder consultative session
on 10 March 2021 in Karachi. This session was presided over by the
Special Assistant to the Prime Minister for Petroleum and attended
by senior government officials, foreign dignitaries, senior
representatives of China National Coal Development Company,
including business development and technical staff. China National
Coal's Vice President also gave a brief introduction of CTG/L
technology and elaborated on necessary commercial support required
from the Government of Pakistan and explained the viability of the
technology.
Since the admission of our project into the oil and gas group in
CPEC in November 2019, our Thar development plan was enlarged to
include a coal to gas for urea plant and coal to liquid facilities.
This makes our project development at Thar more aligned with the
national goals of achieving energy and food security and we have
continued to work very closely with government, in order to make
progress on the ground.
As part of our diversification in coal usage strategy, we also
began to investigate technologies which use lignite to produce urea
products for agriculture enhancement. Whilst we continued to very
actively pursue coal to power concessions, we also began reviewing
renewable power development in Pakistan, in alignment with the
Government of Pakistan's objectives of increasing the share of
renewable power to more than 30 percent in the energy mix by 2030.
The Company also began to investigate the prospects of future
energy fuels such as hydrogen in Pakistan. We will continue to
investigate and assess opportunities, in order to identify
prospects which are aligned with our resource and capacity in
Pakistan.
Australia
The acquisition of two gold projects in Western Australia in
November 2020, amidst a global downturn, has helped to mitigate
single jurisdiction and single project risk and, we believe has
also added significant near term value to the Company. In the first
half of 2021, we made rapid progress in exploration on both
tenements. At the time of acquisition, the exploration license for
the Jundee East tenement was under application. The Company was
granted the exploration license for Jundee East, in May 2021.
During the first half of 2021, a gravity survey and a small sample
geochemical survey returned significantly positive results,
confirming the presence of anomalies and mineralisation showing
evidence of both gold and copper. These results provided the basis
for an extended complete tenement geochemical survey, testing 980
samples. Results obtained post period, have returned heat maps
positively confirming anomalies picked up earlier and a drilling
programme is under development. It is expected that a drilling
programme will be deployed at Jundee East in the last quarter of
2021. Excellent progress at the drill ready Northern Zone tenement,
just 25 kms away from the processing hub at Kalgoorlie, was also
achieved. Detailed processing and interpretation of historical
drilling data was done following field based exploration. This
digitalised data set was modelled to develop a drilling programme
targeting multiple porphyries. Post period end, a programme of
works was approved by the Department of Mines, Industry Regulation
and Safety, and a contractor was hired. Drilling is expected to
start imminently. The Company expects swift progress toward
resource estimation at both tenements within this financial year,
with both tenements presenting commercial potential in the near
term for development organically or through a partnership
arrangement.
Outlook
We have also continued to explore interesting project
development opportunities in the gold mining sector in South
America and Asia during the course of 2021. I can confirm that the
Company has deployed appropriate resources to assess various
projects and continues to do but also remains cognizant of
managerial and operational constraints of a small cap company.
Management very much takes a view that leveraging synergy in sector
and/or jurisdiction offers the best profitable growth potential.
Unfortunately, 2021 has not yet signalled global economic recovery
in many parts of the world and travel still remains restricted.
However, our management model is conducive for working remotely and
outsourcing. Our business operations are strictly goal oriented and
the management structure remains lean. Further, whilst global
conditions remain uncertain, Oracle's projects in Pakistan and
Australia are focused on the development of assets which provide a
hedge against economic insecurity. In Pakistan, Oracle has
established a recognizable capacity and operational bandwidth, and
considers it to be a prime jurisdiction for diversification and
expansion, especially in the power and energy sector. I am grateful
to our professional partners in the UK, Pakistan and WA for their
dedication and support. We would be unable to develop these
projects without their commitment to our success. I would also like
to express my gratitude to all those who support Oracle in the UK,
and help us to manage regulatory affairs, public relations,
accounting, compliance and financing. I also extend my greatest
thanks to the shareholders for their support and belief in the
Company, and for placing their trust in its management.
Naheed Memon
Chief Executive Officer - Oracle Power PLC
Date: 20 September 2021
CONSOLIDATED INCOME STATEMENT
FOR THE SIX MONTHS TO 30 JUNE 2021
(Unaudited) (Unaudited) (Audited)
6 Months 6 Months Year ended
to to
30 June 2021 30 June 2020 31 Dec 2020
CONTINUING OPERATIONS GBP GBP GBP
Revenue - - -
Administrative expenses (302,032) (364,591) (1,011,531)
OPERATING LOSS (302,032) (364,591) (1,011,531)
Finance costs - - -
Finance income 61 291 380
LOSS BEFORE INCOME TAX (301,971) (364,300) (1,011,151)
Income tax - - -
LOSS FOR THE PERIOD (301,971) (364,300) (1,011,151)
------------- ------------- ------------
Earnings per share expressed in pence
per share:
Basic (0.01) (0.02) (0.05)
Diluted (0.01) (0.02) (0.05)
STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS TO 30 JUNE 2021
(Unaudited) (Unaudited) (Audited)
6 Months 6 Months Year ended
to to
30 June 2021 30 June 2020 31 Dec 2020
GBP GBP GBP
LOSS FOR THE YEAR (301,971) (364,300) (1,011,151)
OTHER COMPREHENSIVE INCOME
Exchange difference on consolidation 1,973 (25,203) (154,070)
OTHER COMPREHENSIVE INCOME FOR THE PERIOD,
NET OF INCOME TAX 1,973 (25,203) (154,070)
------------- ------------- ------------
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 299,998 (389,503) (1,165,221)
------------- ------------- ------------
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
FOR THE SIX MONTHS TO 30 JUNE 2021
(Unaudited) (Unaudited) (Audited)
6 Months 6 Months Year ended
to to
30 June 2021 30 June 2020 31 Dec 2020
GBP GBP GBP
ASSETS
NON-CURRENT ASSETS
Intangible assets 5,362,049 4,685,402 5, 256,313
Property, plant and equipment 7,330 9,040 8,288
Loans and other financial assets 362,148 393,723 365,949
5,731,527 5,088,165 5,630,550
------------- ------------- ------------
CURRENT ASSETS
Trade and other receivables 52,853 48,474 32,520
Cash and cash equivalents 975,820 688,067 1,554,424
1,028,673 736,541 1,586,944
------------- ------------- ------------
TOTAL ASSETS 6,760,200 5,824,706 7,217,494
------------- ------------- ------------
EQUITY
SHAREHOLDERS' EQUITY
Called up share capital 2,195,521 1,979,913 2,146,862
Share premium 17,075,316 15,962,674 16,908,975
Translation reserve (684,332) (557,258) (686,305)
Share scheme reserve 172,434 122,051 180,229
Retained earnings (12,749,098) (11,808,071) (12,454,922)
TOTAL EQUITY 6,009,841 5,699,309 6,094,839
------------- ------------- ------------
LIABILITIES
CURRENT LIABILITIES
Trade and other payables 150,359 125,397 322,655
Borrowings 600,000 - 800,000
TOTAL LIABILITIES 750,359 125,397 1,122,655
------------- ------------- ------------
TOTAL EQUITY AND LIABILITIES 6,760,200 5,824,706 7,217,494
------------- ------------- ------------
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHSED 30 JUNE 2021
Called up Retained earnings Share Translation Share Scheme Reserve Total Equity
share premium Reserve
capital
GBP GBP GBP GBP GBP GBP
Balance at 31
December 2019 1,759,751 (11,512,373) 15,512,025 (532,235) 190,653 5,417,821
Loss for the period - (364,300) - - - (364,300)
Other comprehensive
income - - - (25,023) - (25,023)
Share warrants
granted - 68,602 - - (68,602) -
Issue of Share
Capital 220,162 - 450,649 - - 670,811
---------- ------------------ ----------- ------------ --------------------- -------------
Balance at 30 June
2020 1,979,913 (11,808,071) 15,962,674 (557,258) 122,051 5,699,309
---------- ------------------ ----------- ------------ --------------------- -------------
Loss for the period - (646,851) - - - (646,851)
Other comprehensive
income - - - (129,047) - (129,047)
Share warrants
granted - - - - 58,178 58,178
Issue of Share
Capital 166,949 - 946,301 - - 1,113,250
---------- ------------------ ----------- ------------ --------------------- -------------
Balance at 31
December 2020 2,146,862 (12,454,922) 16,908,975 (686,305) 180,229 6,094,839
---------- ------------------ ----------- ------------ --------------------- -------------
Loss for the period - (301,971) - - - (301,971)
Other comprehensive
income - - - 1,973 - 1,973
Share warrants
exercised - 7,795 - - (7,795) -
Issue of Share
Capital 48,659 - 166,341 - - 215,000
---------- ------------------ ----------- ------------ --------------------- -------------
Balance at 30 June
2021 2,195,521 (12,749,098) 17,075,316 (684,332) 172,434 6,009,841
---------- ------------------ ----------- ------------ --------------------- -------------
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEARED 30 JUNE 2021
(Unaudited) (Unaudited) (Audited)
6 Months 6 Months to Year ended
to
30 June 2021 30 June 2020 31 Dec 2020
GBP GBP GBP
Cash flows from operating activities
Cash generated from operations 1 (492,638) (319,927) (807,883)
Net cash from operating activities (492,638) (319,927) (807,883)
------------- ------------- ------------
Cash flows from investing activities
Purchase of intangible fixed assets (100,888) (76,159) (219,770)
Purchase of tangible fixed assets - - (2,513)
Interest received - 291 380
Net cash from investing activities (100,888) (75,868) (221,903)
------------- ------------- ------------
Cash flows from financing activities
Proceeds of share issue 15,000 670,811 1,370,811
Proceeds from borrowings - - 800,000
Net cash from financing activities 15,000 670,811 2,170,811
------------- ------------- ------------
Increase/(Decrease) in cash and
cash equivalents (578,526) 275,016 1,141,025
------------- ------------- ------------
Cash and cash equivalents at beginning
of year 2 1,554,424 413,858 413,858
Effect of exchange rate changes (78) (807) ( 459)
Cash and cash equivalents at end
of year 2 975,820 688,067 1,554,424
------------- ------------- ------------
NOTES TO THE CASH FLOW STATEMENT
FOR THE SIX MONTHS ENDED 30 JUNE 2020
1. RECONCILIATION OF LOSS BEFORE TAX TO CASH GENERATED FROM
OPERATIONS
(Unaudited) (Unaudited) (Audited)
6 Months to 6 Months Year ended
to
30 June 2021 30 June 31 Dec 2020
2020
GBP GBP GBP
Loss before tax (301,971) (364,300) (1,011,151)
Depreciation 103 - 336
Loss/(Gain) on foreign exchange movement 1,454 - 27,871
Finance income - (291) (380)
Loss/(Profit) on disposal of tangible
assets - - 1,761
------------- ----------- ------------
(300,414) (364,591) (981,563)
Decrease/(increase) in trade and other
receivables (30,861) 78,474 57,387
Increase/(decrease) in trade and other
payables (161,363) (33,810) 116,293
Cash generated from operations (492,638) (319,927) (807,883)
------------- ----------- ------------
2. CASH AND CASH EQUIVALENTS
The amounts disclosed on the cash flow statement in respect of
cash and cash equivalents are in respect of the statement of
financial position amounts:
(Unaudited) (Unaudited) (Audited)
6 Months 6 Months Year ended
to to
30 June 30 June 31 Dec 2020
2021 2020
GBP GBP GBP
Cash and cash equivalents 975,820 688,067 1,554,424
NOTES TO THE FINANCIAL STATEMENTS - UNAUDITED RESULTS
FOR THE 6 MONTHS ENDED 30 JUNE 2021
1. Basis of preparation
These interim financial statements for the six month period
ended 30 June 2021 have been prepared using the historical cost
convention, on a going concern basis and in accordance with
applicable International Financial Reporting Standards as adopted
by the European Union ("IFRS") and with those parts of the UK
Companies Act 2006 applicable to companies reporting under IFRS as
adopted by the European Union. They have also been prepared on a
basis consistent with the accounting policies expected to be
applied for the year ending 31 December 2021, and which are also
consistent with the accounting policies applied for the year ended
31 December 2020 except for the adoption of any new standards and
interpretations.
These interim results for the six months ended 30 June 2021 are
unaudited and do not constitute statutory accounts as defined in
Section 434 of the Companies Act 2006. The financial statements for
the year ended 31 December 2020 have been delivered to the
Registrar of Companies and filed at Companies House and the
auditors' report on those financial statements was unqualified but
contained an emphasis of matter in respect of a material
uncertainty relating to going concern. The auditors' report did not
contain a statement made under Section 498(2) or Section 498(3) of
the Companies Act 2006.
2. Loss per share
Basic earnings per share is calculated by dividing the earnings
attributable to ordinary shareholders by the weighted average
number of ordinary shares of 2,180,298,841 (30 June 2020:
1,847,537,146 and 31 December 2020: 1,954,623,146 ) outstanding
during the period. There is no difference between the basic and
diluted loss per share.
3. Restricted bank deposits
In February 2015, US$500,000 was placed on deposit with Habib
Bank as security for a performance bond. The deposit is repayable
on compliance with the conditions of the bond.
4. Called up share capital
(Unaudited) (Unaudited) (Audited)
6 Months to 6 Months to Year ended
30 June 2021 30 June 2020 31 Dec 2020
Allotted, called
up and fully
paid
Ordinary shares
of 1p each 2,195,521,479 1,979,913,151 2,146,862,217
The number of shares in issue was as follows:
Number of shares
Balance at 31 December 2019 1,759,750,959
Issued during the period 220,162,192
-----------------
Balance at 30 June 2020 1,979,913,151
Issued during the period 166,949,066
-----------------
Balance at 31 December 2020 2,146,862,217
Issued during the period 48,659,262
-----------------
Balance at 30 June 2021 2,195,521,479
-----------------
5. Trade and Other Payables
(Unaudited) (Unaudited) (Audited)
6 Months to 6 Months to Year ended
30 June 2021 30 June 2020 31 Dec 2020
GBP GBP GBP
Trade Payables 150,359 125,397 322,655
6. Post balance sheet events
On 13 August 2021, the Company announced that the Department of
Mines, Industry Regulation and Safety - Western Australia, has
approved the Company's Programme of Work which allows Oracle to
commence drilling in the Northern Zone, located 25km east of
Kalgoorlie in Western Australia.
On 13 August 2021, a further GBP100,000 of the remaining share
subscription advance of GBP600,000 had been converted into a total
of 30,242,545 new fully paid ordinary shares.
On 2 September 2021 a further GBP100,000 of the remaining share
subscription advance of GBP500,000 had been converted into a total
of 31,281,281 new fully paid ordinary shares. As at 2 September
2021 GBP400,000 of the share subscription advance remained
outstanding.
There are no other post balance sheet events to report.
*ENDS*
For further information on Oracle Power Plc, visit the Company '
s website http://www.oraclepower.co.uk or contact:
Oracle Power PLC
Naheed Memon - CEO +44 (0) 203 580 4314
Strand Hanson Limited (Nominated Adviser)
Rory Murphy, James Harris, Rob Patrick +44 (0) 20 7409 3494
Brandon Hill Capital Limited (Joint Broker)
Oliver Stansfield +44 (0) 203 463 5000
Shard Capital (Joint Broker)
Damon Heath, Isabella Pierre +44 (0) 20 7186 9952
St Brides Partners Limited (Financial PR)
Susie Geliher, Catherine Leftley +44 (0) 20 7236 1177
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