TIDMALBA
RNS Number : 3902X
Alba Mineral Resources PLC
28 August 2020
Alba Mineral Resources plc
("Alba" or the "Company")
HALF-YEARLY REPORT
The Board of Directors of Alba Mineral Resources plc (the
"Company" or "Alba"), the diversified mineral exploration and
development company, is pleased to report the Company's interim
results for the six months ended 31 May 2020. They incorporate the
results of its subsidiary companies Aurum Mineral Resources Limited
("AMR"), Mauritania Ventures Limited ("MVL"), Obsidian Mining
Limited ("OML"), White Eagle Resources Limited ("WERL"), White Fox
Resources Limited ("WFRL"), Dragonfire Mining Limited ("DML") and
the Gold Mines of Wales group of companies ("GMOW") (together the
"Subsidiary Companies", collectively with Alba, the "Group").
CHAIRMAN'S STATEMENT
The six months to 31 May 2020 have seen the Company have to
tackle the significant challenges resulting from the global
Coronavirus pandemic. Despite this, we have continued to make
material progress across our project portfolio.
1. REVIEW OF ACTIVITIES
As we entered 2020, the stated focus of our work activities for
2020 was to be the Clogau Gold Mine and the Amitsoq Graphite
Project. At Clogau, our plan was to undertake a surface trenching
programme across a selection of the 10 new gold targets identified
from our regional-scale soil sampling programme over the Dolgellau
Gold Belt. At Amitsoq, our plan was to complete a drilling
programme this summer, which we hoped would enable us to declare a
maiden JORC-compliant resource there.
Unfortunately, these plans had to be put on hold once the
severity of the global public health emergency became apparent. As
we reported to the market at the time of the release of our final
results on 31 March 2020, these events placed considerable doubt on
our ability to execute the planned field activities in both Wales
and Greenland. As it turns out, our fears proved correct as the
general lockdowns in the UK and Greenland made it practically
impossible for us to send personnel and equipment to site.
However, our technical team put the enforced downtime imposed
from the end of March through to July 2020 to very good use, using
that time to develop and refine our plans for carrying out a
programme of underground drilling and bulk sampling at the Clogau
Gold Mine and to seek all the necessary regulatory consents for
this work to proceed. As a result, earlier this month we were able
to report that the planning authority for the Clogau-St David's
Gold Mine (the "Mine") had confirmed that Alba's planned
underground bulk sampling and drilling programme could proceed by
way of permitted development. We expect to be able to mobilise the
drilling and bulk sampling teams to site shortly, for an early
September start date.
The next phase of work at Clogau is genuinely exciting and
represents the first concerted underground exploration campaign at
the Mine for several decades. Through this work, we hope to be able
to identify new, and as yet unexploited, gold zones within or
adjacent to the existing mine workings which will support a
decision to re-open the Mine for commercial production.
With the gold price recently at record highs, it is certainly
not a bad time to be focused on the restart of production at a gold
mine.
As for our other projects, while COVID-19 put paid to our plans
to drill a JORC resource at Amitsoq, we have also used the time
wisely in relation to Greenland. We will complete the next phase of
metallurgical test work in relation to our high-grade Amitsoq
graphite, and we have also appointed highly reputable industry
consultants Golder & Associates to undertake a detailed
conceptual study on our Melville Bay Iron Ore Project. While we had
always planned this as the next work phase for the project, with
iron ore prices currently at a six-year high the case for
commissioning an evaluation of the economic potential of
undertaking mining operations at Melville Bay becomes that much
more compelling. This will be the most important work undertaken at
Melville Bay since the drilling and declaration of a maiden JORC
resource back in 2011-2012.
In relation to our investment in the Horse Hill Oil Field, in
March 2020 we announced that the Oil and Gas Authority had approved
the Horse Hill Field Development Plan and consented to the start of
long-term production from the field. After the reporting period,
the operator of the Horse Hill Oil Field (the "Operator") announced
that it was reviewing the options for the future use of the Horse
Hill-2z Well ("HH-2z"), including stimulation to return it to
long-term oil production, side-tracking the well to a different
subsurface location or converting it into a water re-injection well
to reduce future operating costs. At the same time, the Operator
confirmed its intention to reperforate the Horse Hill-1 Well
("HH-1") with a view to improving the rate of production. At the
time of writing, we await confirmation of the likely timelines for
these well interventions.
2. CORPORATE
In February 2020, we announced that we had entered into a
convertible securities issuance deed (the "Agreement") with a
U.S.-based institutional investment fund managed by Bergen Asset
Management, LLC ("Bergen") to provide up to GBP1,054,500 of funding
in the form of the issuance by the Company of a series of unsecured
zero coupon convertible securities. In early March, we announced
that we had issued the first convertible security to Bergen, with a
nominal value of GBP223,000 (the "First Convertible Security").
Bergen converted the First Convertible Security into Alba shares
in tranches commencing in April 2020, with the final tranche being
converted in August 2020.
Earlier this month, we announced that we had raised GBP450,000
(before expenses) in a share placing at a price of 0.065 pence per
ordinary share, with one share warrant also being issued for every
two shares subscribed for at an exercise price of 0.13p per share
and an expiration date of 24 months from the date of issue. This
share placing was completed so that we could accelerate our work
activities at Clogau following the partial lifting of Coronavirus
restrictions.
3. RESULTS
The Group made a loss attributable to equity holders of the
parent for the period, after taxation, of GBP303,788 (2019:
GBP375,970). The basic and diluted loss per share was 0.008p (2019:
0.012p).
4. OUTLOOK
Despite the considerable amount of field time lost to the
Coronavirus lockdown, we are now in position to be able to execute
one of the most significant underground work programmes seen at the
Clogau-St David's Gold Mine for several decades.
Our other mining projects also remain on a sound footing, with
JORC resources at both Thule Black Sands and Melville Bay, and
renewed plans to drill a maiden JORC resource at Amitsoq in 2021.
And assuming the plans to improve productivity at the two existing
Horse Hill oil wells bear fruit, our investment in that asset will
also begin to take on a much healthier hue, notwithstanding the
recent downturn in the oil price.
In short, Alba remains in a strong position to generate real and
sustained growth across the Company's portfolio of assets and
investments.
On behalf of the entire Board, I would like to take this
opportunity to thank our shareholders for all their messages of
support during what have certainly been challenging and
unprecedented times.
George Frangeskides
27 August 2020
Executive Chairman
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
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 contact:
Alba Mineral Resources plc
George Frangeskides, Executive Chairman +44 20 3907 4297
Cairn Financial Advisers LLP (Nomad)
James Caithie/Liam Murray +44 20 7213 0880
First Equity Limited (Broker)
Jason Robertson +44 20 7374 2212
Alba's Project and Investment Portfolio
Project (commodity) Location Ownership
Mining Projects
Amitsoq (graphite) Greenland 90%
----------- ----------
Clogau (gold) Wales 90%
----------- ----------
Inglefield (copper, cobalt,
gold) Greenland 100%
----------- ----------
Limerick (zinc-lead) Ireland 100%
----------- ----------
Melville Bay (iron ore) Greenland 51%
----------- ----------
TBS (ilmenite) Greenland 100%
----------- ----------
Oil & Gas Investments
Brockham (oil) England 5%
----------- ----------
Horse Hill (oil) England 11.765%
----------- ----------
UNAUDITED CONSOLIDATED INCOME STATEMENT
FOR THE SIX MONTHSED 31 MAY 2020
Unaudited Unaudited Audited Year
6 months 6 months ended 30
ended 31 ended 31 Nov 2019
May 2020 May 2019
Revenue - -
Cost of sales - -
-------------- -------------- -------------
Gross loss - -
Administrative expenses (338,463) (376,163) (772,849)
Other income 34,542
Impairment of intangible
assets - - (539,554)
Operating (loss)/profit (303,921) (376,163) (1,312,403)
(Loss)/profit before tax (303,921) (376,163) (1,312,403)
Taxation - - -
-------------- -------------- -------------
(Loss)/profit for the year (303,921) (376,163) (1,312,403)
-------------- -------------- -------------
Attributable to:
Equity holders of the parent (303,788) (375,970) (1,311,172)
Non-controlling interests (133) (193) (1,231)
-------------- -------------- -------------
(303,921) (376,163) (1,312,403)
-------------- -------------- -------------
Loss per ordinary share
Basic and diluted (0.008) pence (0.012) pence (0.0039)
pence
UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 MAY 2020
Unaudited Unaudited Audited Year
6 months 6 months ended 30
ended 31 ended 31 Nov 2019
May 2020 May 2019
Non-current assets
Property, plant and equipment 85,000 85,000 85,000
Intangible fixed assets 3,107,797 3,340,498 3,050,430
Investments - Horse Hill Developments 5,430,000 5,430,000 5,430,000
Investments -other 11,125 7,161 11,125
Total non-current assets 8,633,922 8,862,659 8,576,555
------------ ------------ -------------
Current assets
Trade and other receivables 65,397 79,453 81,460
Cash and cash equivalents 105,470 23,443 211,333
------------ ------------ -------------
Total current assets 170,867 102,896 292,793
------------ ------------ -------------
Current liabilities
Trade and other payables (406,900) (485,096) (356,232)
Financial liabilities (157,134) (294,207) (137,312)
------------ ------------ -------------
Total current liabilities (564,034) (779,303) (493,544)
------------ ------------ -------------
Net current (liabilities)
/ assets (393,167) (676,407) (200,751)
------------ ------------ -------------
Net assets 8,240,755 8,186,252 8,375,804
------------ ------------ -------------
Capital and reserves
Called up share capital 4,770,233 4,114,233 4,582,983
Share premium account 7,093,305 6,816,382 7,128,257
Warrant reserve 739,303 678,521 722,998
Retained losses (4,577,582) (3,543,913) (4,273,794)
Merger reserve - 200,000 -
Foreign currency reserve 230,287 187,723 230,018
------------ ------------ -------------
Equity attributable to equity
holders of the parent 8,255,546 8,452,946 8,390,462
Non-controlling interests (14,791) (266,694) (14,658)
------------ ------------ -------------
Total equity 8,240,755 8,186,252 8,375,804
------------ ------------ -------------
UNAUDITED CONSOLIDATED CASH FLOW STATEMENT
FOR THE SIX MONTHSED 31 MAY 2020
Unaudited Unaudited Audited Year
6 months 6 months ended 30
ended 31 ended 31 Nov 2019
May 2020 May 2019
Cash flows from operating activities
Operating loss (303,921) (376,163) (1,312,403)
Share option charge 16,303 54,482 82,405
Fees paid in shares 42,174
Impairment of intangible assets - - 539,554
Change in fair value of other
investments - - (3,964)
Foreign exchange revaluation
adjustment 267 (3,255) 45,614
Increase / (decrease) in creditors (45,509) (1,142) 44,474
(Increase)/ decrease in debtors 32,190 (17,559) (19,566)
---------- ---------- -------------
Net cash used in operating activities (258,496) (343,637) (623,886)
---------- ---------- -------------
Cash flows from investing activities
Payments for deferred exploration
expenditure (57,367) (263,715) (522,179)
Payments for intangible fixed
assets - - (165,897)
Net cash used in investing activities (57,367) (263,715) (688,076)
---------- ---------- -------------
Cash flows from financing activities
Proceeds from issue of shares
and warrants 155,000 45,000 895,000
Proceeds from financial liabilities 101,126 - 90,000
Cost of issue (46,126) - (47,500)
---------- ---------- -------------
Net cash generated from financing
activities 210,000 45,000 937,500
---------- ---------- -------------
Net increase in cash and cash
equivalents (105,863) (562,352) (374,462)
Cash and cash equivalents at
beginning of period 211,333 585,795 585,795
---------- ---------- -------------
Cash and cash equivalents at
end of year 105,470 23,443 211,333
---------- ---------- -------------
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 International Financial
Reporting Standards ("IFRS"), International Accountant Standards
("IAS") and IFRS Interpretations Committee ("IFRIC")
interpretations as adopted by the European Union. 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 2019. 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. The auditor's report for the year ended 30 November 2019
did include a paragraph on material uncertainty related as to
whether the Group can raise sufficient funds to continue to develop
the Group's exploration assets.
2. Taxation
No charge for corporation tax for the period has been made due
to the expected tax losses available.
3. Loss per share
Basic loss per share is calculated by dividing the loss
attributable to ordinary shareholders of GBP303,788 (May 2019:
GBP375,970; November 2019: GBP1,311,172) by the weighted average
number of shares of 3,922,836,878 (May 2019: 3,264,478,658;
November 2019: 3,403,506,056) in issue during the period. The
diluted loss per share calculation is identical to that used for
basic loss per share as the exercise of warrants would have the
effect of reducing the loss per ordinary share and therefore is not
dilutive under the terms of Financial Reporting Standard 22
"Earnings Per Share".
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