Embargoed until
7.01am
29 January 2021
ALTONA ENERGY
PLC
(“Altona” or “the Company”)
Final Results
For the Year Ended
30 June 2020
HIGHLIGHTS
- Changed strategy to focus on the mining of Rare Earth Metals in
Africa
- Reduced loss before taxation to £228,000 (2019: loss £11.6m,
with £11m being impairment of historic coal assets in Australia)
POST YEAR-END HIGHLIGHTS
- Completed two Placings totaling £661,000 at 6.5 pence (Dec 20
and Jan 21)
- Signed Heads of Agreements to acquire majority interests in two
Rare Earths Projects in East
Africa
- Negotiating two more possible acquisitions to complete
portfolio of Rare Earth mining assets
- Commenced Applications process for the LSE Standard Market
- Appointed two Directors with two further appointments planned
for February 2021
Christian Taylor-Wilkinson,
Chief Executive of Altona, commented, “The 12-month period
under review was one of great change for Altona, as it closed a
significant 15-year chapter on its Australian coal exploration
activities and opened the door onto its new Rare Earth Metals
mining strategy, which it believes has far greater relevance for
the world in the 21st Century.
“The Company is poised at the juncture of a significant
opportunity, which it hopes to be able to capitalise on in 2021.
Should we gain the right level of funding we require and should the
assets we are currently assessing ahead of acquiring, be as we
expect them, then Altona will be in a position to start a journey
that could take it to being a respected producer of rare earth
metals within a few years.
“The rare earths sector is among the fastest growing mining
industries and its technology metals are among the most in-demand
elements on the planet; a statistic which is only likely to grow as
the world moves towards being more environmentally conscious and
starts to fulfil its ‘green’ potential.”
For further information, please visit www.altonaenergy.com or
contact:
Altona Energy Plc
Christian Taylor-Wilkinson, Chief
Executive
+44 (0) 7795 168 157
Martin Wood, Non-Executive
Chairman
+44 (0) 7880 787 080
Alfred Henry Corporate Finance Ltd (AQSE Corporate
Adviser )
Jon Isaacs / Nick
Michaels
+44 (0) 20 3772 0021
Company Information
Altona is a mining exploration company focused on the
evaluation, rapid development and extraction of Rare Earth Element
(REE) metals in Africa.
The Company was admitted to trading on AIM on 10 March 2005 and was subsequently admitted to
Aquis Stock Exchange on 1 February 2019. A copy of its
Admission documents dated 4 March
2005 can be accessed on its website,
www.altonaenergy.com. This website is where items can be
inspected under Rule 75 of the Aquis Rules for Issuers.
CHIEF EXECUTIVE’S STATEMENT
Operational Review
The 12-month period under review was one of great change for
Altona, as it closed a significant 15-year chapter on its
Australian coal exploration activities and opened the door onto its
new Rare Earth Metals strategy, which it believes has far greater
relevance for the world in the 21st Century.
In November 2019, the Company made
the decision not to renew its exploration licences on its three
Arckaringa coal mining tenements, situated in South Australia, due to the Company not owning
the petroleum exploration licence, which it failed to acquire in
2012, and therefore prevented the Company from performing an
in-situ gasification project. The strategy, agreed by the board at
this time, was to continue the Company’s exploration in underground
coal gasification and, to this effect, set out to acquire a new
coal mining tenement, close to Arckaringa, but with the relevant
petroleum exploration licence, providing an opportunity to conduct
a new in-situ gasification project, where it had failed at
Arckaringa. A subsequent attempt at a capital raise to acquire the
licence and provide funding for early-stage exploration in Q1 2020
failed to deliver a suitable level of funds and therefore, the
board agreed to cease all coal mining activities in Australia and seek a new strategy which had
the potential to bring the Company to profitability in under three
years and provide a return for its long-term shareholders.
The Company’s new strategy is to acquire majority interests in
multiple Rare Earths mining projects in Africa, primarily those holding deposits based
in ionic clay, and to rapidly bring these projects to production.
The Company has agreed not to focus on just one asset, as this
could lead to higher levels of shareholder risk, due to possible
delays and lower than estimated ore bodies, which is sometimes
typical of mining projects. The Board has agreed that a minimum of
three projects will be sufficient to negate these risks, with any
two of the projects moving forward to reach its agreed milestones
during the particular year.
Rare Earth Mining Acquisitions
Towards the end of the year under review, on 2 June 2020, the Company entered into a
Memorandum of Understanding (“MoU”) with Akatswiri Mineral
Resources Ltd, a Malawian mining consultancy and 100% owner of
Akatswiri Rare Earths Ltd (“ARE”). ARE had, in February 2020, been granted, pending approval, an
Exploration Licence (APL 0153) over the area known as the Chambe
Rare Earths Project (“Chambe”), in Mulanje, Southern Malawi.
The MoU (which progressed to Heads of Agreement on 29 July 2020) set out Altona’s acquisition of
ARE, commencing with an initial 51% interest and rising to a
holding of 75% on certain milestones being met.
Chambe is a large, ionic adsorption clay-hosted Rare Earth
Elements (“REE”) project bearing appreciable quantities of critical
heavy and light REEs, particularly Neodymium and Praseodymium,
Ytterbium, Dysprosium and Yttrium. Extensive exploration work has
been carried out on the site since September
2010, by the previous owners, confirming the presence of
mineralised Rare Earth Oxide clays, similar to many of the larger
REE mines in China. The benefits
of extracting REE from ionic clay deposits include lower operating
and capital costs (OPEX and CAPEX), as well as shorter times for
development.
The Company’s geologist, Cedric
Simonet, working with the consultancy team at Akatswiri
Mineral Resources, has provided a conceptual exploration target of
between 45 to 100Mt @ 500 to 900 ppm
Total Rare Earth Oxide (“TREO”), based on data available, dimension
of the basin, as well as a reasonable assumption of the thickness
and density of the mineralised geological formation. Importantly,
the exploration target grade is within range of the documented
ionic clay deposits in Asia and
Africa.
Two additional kaolinitic soil deposits which have not been
tested yet for REE exist within the licence. They will be tested as
part of Phase 1 exploration and, should results be positive, the
exploration target may increase.
Ionic Clay REEs Rationale in
Africa
The past two years has seen a major global shift in the mind-set
of Rare Earth Metals end-users, these being primarily the
manufacturers of:
- High-strength permanent magnets for the Electric Vehicle market
(38% of total value REEs)
- Military hardware, including guidance systems and laser
rangefinders
- Green power sectors, such as wind power generation (up to 24kg
of REEs per turbine)
- High temperature fuel cells
- Catalytic converters (19% of total volume of REEs)
- Structural ceramics
Presently, China controls
between 90-95% of the supply chain and crucially, also controls the
refining and processing sectors, creating a worldwide bottleneck.
When looking at key future industries such as the Electric Vehicle
(“EV”) market, world governments are aware that the only way to
increase numbers of cars on the road is to price the vehicles
suitably. With China controlling
more than 70% of EV battery manufacturing, a rise in cost of
vehicles due to inflated REE prices could cause a significant delay
to one of the world’s major “Green Solutions”.
Currently, there are no viable alternatives to provide the huge
quantities of the “Technology Metals”, primarily Neodymium and
Praseodymium, needed for the manufacturing of items such as
permanent magnets, lasers, superalloys, ceramics, fuel cells,
catalytic converters, glass making and a whole raft of other
industries.
However, REE mining companies are now turning to Africa, as a possible solution.
Many African jurisdictions are considered to be politically
benign, globally speaking, and have a long history in dealing with
international mining companies. So much so, that the US government
has now been investigating the Continent’s Rare Earths potential
for the past two years.
Rare Earth Metals are found in very specific geological
environments and Africa is blessed
with several carbonatite provinces along the East African Rift
Valley and along its continental margins; carbonatites being the
rock formations which are naturally rich in Rare Earths. In
addition to this, Africa also has
the right climatic conditions to raise the concentration of the
carbonatites and make them more easily mineable, through
weathering. These deposits once developed, could provide a
long-term, alternative supply line.
More recently, the presence of Ionic Clay Rare Earths deposits
have also been discovered in the Eastern and Central parts of
Africa and these have formed the
initial investment target for Altona.
Therefore, if we look at China
once more, the majority of its largest producers are mining
deposits based in ionic clay type soils; meaning access to the
metals is quicker and cheaper than mining and processing rock-based
deposits. Processing the raw materials is also less expensive,
environmentally preferred due to the benign chemicals used in the
processing of the metals and ultimately “greener”, an important
issue when the end-products are crucial to the future of the
environment.
All in all, this means that Rare Earths mining companies in
Africa could develop and start
supplying Technology Metals to the world’s green industries in
under three years.
Board Changes
On 19 November 2019, Ma Chi, the board representative of the
Company’s long-term joint venture partner, Sino-Aus Energy Group
Ltd, resigned as a non-Executive Officer with immediate effect,
following the termination of the Arckaringa joint venture
agreement.
On 18 March 2020, Qinfu Zhang, the
Company’s Executive Chairman, resigned with immediate effect in
order to focus on his business interests in China.
Financial Review
During the period under review the Group made a loss before
taxation of £228,000 (2019: loss £11,657,000). The majority
of the loss before tax in the prior year relates to the impairment
of the intangible assets of £11,033,000, due to the Company
relinquishing its ownership of its three historic Exploration
Licences in the Arckaringa Basin.
As at 30 June 2020, the Group was
in an overdraft position of £99,000 (30 June
2019: bank overdraft position of £96,000).
Post Balance Sheet Events
On 21 September, the Company announced it had signed non-binding
Heads of Agreement with Leadway Group Ltd to acquire a 70% legal
and beneficial interest in a greenfield mining project in
Uganda, known as the Nankoma Rare
Earth Project (“Nankoma”) (tenement TN03385). The tenement covers
an area of 67.5 km2 and is located approx. 50 km east of Jinja,
which lies 130 km east of Kampala
in Eastern Uganda.
Should a binding agreement be entered into, Altona will be
responsible for 100% of the agreed budgeted costs to complete a
Feasibility Study on the establishment of commercial scale REE
mining and processing operations at the project site. Altona will
be the manager and operator of the project.
The Company expects to sign a final agreement by the end
of January 2021, following completion
of its due diligence and an in-depth study of the tenement’s
geology, using Uganda’s airborne geophysical survey datasets
(survey flown in 2006) as well as Shuttle Radar Topography Mission
(SRTM) and multi-spectral satellite imagery, and including an
analysis of a number of soil samples taken from the site.
The rationale for the acquisition of the Nankoma Rare Earth
Project is based, at this time, on the close proximity of the
tenements to Australian Stock Exchange (“ASX”) listed Ionic Rare
Earth Limited’s (“IonicRE”) REE exploration project, which lie
immediately from the north-west to the east of the Nankoma tenement
and has a similar geology and geomorphology.
IonicRE reported a Mineral Resource Estimate of 78.6 Mt @ 840
ppm Total Rare Earth Oxide (“TREO”) on its Makuutu Central Zone
(tenement RL1693) in June 2020, which
it is currently extending to the east, beyond Nankoma. Crucially,
IonicRE reported high levels of Critical Rare Earth Oxides
(“CREO”), at 310 ppm, which include the elements, Neodymium and
Praseodymium, two of the REEs which Altona is focused on
extracting, due to their demand in many green industries.
Considering that IonicRE’s resource is of the ionic-clay adsorption
type deposit, the TREO and CREO figures are highly encouraging, due
to the ease of recovery and low-cost nature of this type of
deposit.
To assist the Board in determining its choice of acquisition
targets and operational strategy, two mining consultants were
appointed in July 2020, these being
Cedric Simonet and Gavin Beer. Both are recognised as a Competent
Persons for JORC and as Qualified Persons for NI43-101 reports.
Gavin is a globally acknowledged metallurgist with more than 30
years’ experience and Cedric, based in Nairobi, Kenya, has over 25 years’ experience
exploring, developing and mining mineral deposits in Africa and France and is the former Chairman of the Kenya
Chamber of Mines.
On 28 October Martin Wood was appointed as Non-Executive
Chairman and has brought to the Company a wealth of experience in
both the financial and mining industries; his background being
investment banking in the early part of his career and latterly,
running Vicarage Capital, an FCA registered brokerage house working
with junior resources companies, as well has being CEO of ASX
listed, Kogi Iron Limited, providing him with experience of the
African mining sector.
The Company’s shares were re-admitted to trading on Aquis Stock
Exchange (“AQSE”) on 2 December 2020,
following a successful fund raise of £138,000 before expenses. The
fund raise was completed at a price of 6.5p, with at 1:2 warrants
offered with a strike price of 12p. The funds will allow the
Company to complete its due diligence on its two current
acquisition targets and commence its planned move of its stock
market listing onto the London Stock Exchange’s Standard market.
The rationale for this process is to enable the Company to access
the large amounts of capital it will need to conclude exploration
and commence production on its projects over the next few years,
which it believes it cannot achieve being listed solely on AQSE. A
further placing was completed in January
2021 with subscription letters being received by the Company
in respect of a further fundraising of approximately £523,000
before expenses on the same terms as the December raise.
On 30 November, Phillip
Sutherland, the Company’s long-standing Non-Executive
Director offered his resignation from the board. Phillip will be
retiring from his full-time occupation in Adelaide in January
2021 and wishes to spend more time with his family. He will
continue working with Altona until his notice period is served on
28 February 2021. We offer our thanks
to Phillip for his many years of service and wish him and his
family the very best for a long and full retirement.
On 7 December 2020, the Company
paid a significant portion of the overdraft, reducing the balance
to £50,000. In conjunction with the payment, the Company also
agreed an extension with its bank and extended the due date to
31 May 2021.
Finally, on 24 December, the board appointed Cederic Simonet as a Non-Executive Director.
Cederic is highly experienced geologist, who has spent most of the
past 25 years living and working in Africa and had been working with the Company
since July 2020 as a consultant
geologist. While the Covid-19 restrictions have made travel to
Africa difficult for the rest of
the board, Cedric has been the Company’s local eyes and ears across
the jurisdictions Altona has an interest in, maintaining the
Company’s presence and performing both technical and corporate
roles with a high level of professionalism and success. His
knowledge of the African mining landscape makes him a natural fit
for Altona’s board and Rare Earths mining strategy.
Outlook
The Company is poised at the juncture of a significant
opportunity, which it hopes to be able to capitalise on in 2021.
Should we gain the right level of funding we require and should the
assets we are currently assessing ahead of acquiring, be as we
expect them, then Altona will be in a position to start a journey
that could take it to being a respected producer of rare earth
metals within a few years. The journey will not be without risk and
the inevitable delays, but we are assembling a strong board of
directors, who have the necessary experience to deal with every
eventuality.
The rare earths sector is among the fastest growing mining
industries and its technology metals are among the most in-demand
elements on the planet; a statistic which is only likely to grow as
the world moves towards being more environmentally conscious and
starts to fulfil its “green” potential.
Christian
Taylor-Wilkinson
Chief Executive
Altona Energy Plc
28 January 2021
STATEMENT OF CONSOLIDATED
COMPREHENSIVE INCOME
For the year ended 30 June 2020
|
|
|
Group |
|
|
|
Notes |
2020
£’000 |
2019
£’000 |
|
|
|
|
|
|
|
|
|
|
|
|
Other
income |
|
42 |
- |
Administrative expenses |
|
(270) |
(624) |
Impairment
expense |
|
- |
(11,033) |
Operating
loss |
|
(228) |
(11,657) |
Loss
before taxation |
|
(228) |
(11,657) |
Tax (charge) /
credit |
|
- |
- |
Loss for
the year attributable to the
equity holders of the parent |
|
(228) |
(11,657) |
|
|
|
|
|
|
Other
comprehensive income |
|
|
|
|
Exchange differences on translating foreign operations that
may be subsequently reclassified to profit or loss |
|
(1) |
(187) |
Total comprehensive
income attributable to the equity holders of the parent |
|
(229) |
(11,844) |
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
per share (expressed in pence per share)
- Basic attributable to the equity holders of the parent |
2 |
(14.23)p |
(894.84)p |
- Diluted
attributable to the equity holders of the parent |
2 |
(14.23)p |
(894.84)p |
|
|
|
|
|
|
All of the above operations during the year are continuing.
STATEMENTS OF FINANCIAL POSITION
As at 30 June
2020
|
|
Group
2020
£’000 |
Group
2019
£’000 |
Company
2020
£’000 |
Company
2019
£’000 |
ASSETS |
|
|
|
|
|
Non-current assets |
|
|
|
|
|
Intangible assets |
|
- |
- |
- |
- |
Investment in subsidiaries |
|
- |
- |
- |
- |
Other receivables |
|
- |
3 |
- |
- |
Total non-current assets |
|
- |
3 |
- |
- |
Current
assets |
|
|
|
|
|
Trade and other receivables |
|
20 |
32 |
20 |
32 |
Cash and cash equivalents |
|
- |
- |
- |
- |
Total current assets |
|
20 |
32 |
20 |
32 |
|
|
|
|
|
|
TOTAL ASSETS |
|
20 |
35 |
20 |
32 |
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
Trade and other payables |
|
524 |
310 |
524 |
310 |
Total current liabilities |
|
524 |
310 |
524 |
310 |
|
|
|
|
|
|
TOTAL LIABILITIES |
|
524 |
310 |
524 |
310 |
|
|
|
|
|
|
NET ASSETS |
|
(504) |
(275) |
(504) |
(278) |
|
|
|
|
|
|
EQUITY ATTRIBUTABLE
TO EQUITY HOLDERS OF THE PARENT |
|
|
|
|
|
Share capital |
|
1,431 |
1,431 |
1,431 |
1,431 |
Share premium |
|
18,697 |
18,697 |
18,697 |
18,697 |
Merger reserve |
|
2,001 |
2,001 |
2,001 |
2,001 |
Foreign exchange reserve |
|
1,223 |
1,224 |
- |
- |
Retained deficit |
|
(23,856) |
(23,628) |
(22,633) |
(22,407) |
TOTAL EQUITY |
|
(504) |
(275) |
(504) |
(278) |
The loss within the parent company financial statements for the
year was £226,000 (2019: £12,979,000).
STATEMENTS OF CASH FLOWS
For the year ended 30 June 2020
|
|
Group |
Company |
|
|
2020
£’000 |
2019
£’000 |
2020
£’000 |
2019
£’000 |
Cash flows from
Operating activities |
|
|
|
|
|
(Loss)/profit for the
year before taxation |
|
(228) |
(11,657) |
(226) |
(12,979) |
Shares issued for
services |
|
- |
9 |
|
9 |
Impairment of
intangibles |
|
- |
11,033 |
|
- |
Impairment of i/c loan
/ investment in subsidiary |
|
- |
- |
|
12,434 |
(Increase)/decrease in
receivables |
|
12 |
6 |
10 |
6 |
Increase/(decrease) in
payables |
|
188 |
123 |
188 |
129 |
Cash used in
operations |
|
(28) |
(486) |
(28) |
(401) |
Income tax benefit
received |
|
- |
- |
- |
- |
Net cash used in
operating activities |
|
(28) |
(486) |
(28) |
(401) |
|
|
|
|
|
|
Cash flows from Investing
activities |
|
|
|
|
|
Loans (to) / from subsidiaries |
|
- |
- |
- |
94 |
Interest received |
|
- |
- |
- |
- |
Net cash generated from/(used in)
investing activities |
|
- |
- |
- |
94 |
|
|
|
|
|
|
Cash flows from Financing
activities |
|
|
|
|
|
Proceed from bank overdraft |
|
3 |
96 |
3 |
96 |
Proceeds from loan |
|
25 |
|
25 |
|
Proceeds from issue of shares |
|
- |
- |
- |
- |
Costs of issue |
|
- |
- |
- |
- |
Net cash inflow from
financing |
|
28 |
96 |
28 |
96 |
|
|
|
|
|
|
Net increase/(decrease) in cash and
cash equivalents |
|
- |
(390) |
- |
(211) |
Cash and cash
equivalents at beginning of the year |
|
- |
391 |
- |
211 |
Effect of exchange rate changes on
cash and cash equivalents |
|
- |
(1) |
- |
- |
Cash and cash equivalents at 30
June |
|
- |
- |
- |
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
STATEMENTS OF CHANGES IN EQUITY
For the year ended 30 June 2020
Attributable to equity holders of the
parent
|
Share
capital |
Share
Premium |
Merger
reserve |
Foreign exchange
reserve |
Retained
deficit |
Total
equity |
Group |
£’000 |
£’000 |
£’000 |
£’000 |
£’000 |
£’000 |
|
|
|
|
|
|
|
Balance at 30 June 2018 |
1,427 |
18,692 |
2,001 |
1,411 |
(11,971) |
11,560 |
Profit/(loss) for the year |
- |
- |
- |
- |
(11,657) |
(11,657) |
Other comprehensive income |
- |
- |
- |
(187) |
- |
(187) |
Total comprehensive income |
- |
- |
- |
(187) |
(11,657) |
(11,844) |
Issue of shares |
4 |
5 |
- |
- |
- |
9 |
Cost of share issue |
- |
- |
- |
- |
- |
- |
Balance at 30 June 2019 |
1,431 |
18,697 |
2,001 |
1,224 |
(23,628) |
(275) |
Profit/(loss) for the year |
- |
- |
- |
- |
(228) |
(228) |
Other comprehensive income |
- |
- |
- |
(1) |
- |
(1) |
Total comprehensive income |
- |
- |
- |
(1) |
(228) |
(229) |
Issue of shares |
- |
- |
- |
- |
- |
- |
Cost of share issue |
- |
- |
- |
- |
- |
- |
Balance at 30 June 2020 |
1,431 |
18,697 |
2,001 |
1,223 |
(23,856) |
(504) |
|
Share
capital |
Share
Premium |
Merger
reserve |
Foreign exchange
reserve |
Retained
deficit |
Total
equity |
Company |
£’000 |
£’000 |
£’000 |
£’000 |
£’000 |
£’000 |
|
|
|
|
|
|
|
Balance at 30 June 2018 |
1,427 |
18,692 |
2,001 |
- |
(9,428) |
12,692 |
Profit/(loss) for the year |
- |
- |
- |
- |
(12,979) |
(12,979) |
Other comprehensive income |
- |
- |
- |
- |
- |
- |
Total comprehensive income |
- |
- |
- |
- |
(12,979) |
(12,979) |
Issue of shares |
4 |
5 |
- |
- |
- |
9 |
Cost of share issue |
- |
- |
- |
- |
- |
- |
Balance at 30 June 2019 |
1,431 |
18,697 |
2,001 |
- |
(22,407) |
(278) |
Profit/(loss) for the year |
- |
- |
- |
- |
(226) |
(226) |
Other comprehensive income |
- |
- |
- |
- |
- |
- |
Total comprehensive income |
- |
- |
- |
- |
(226) |
(226) |
Issue of shares |
- |
- |
- |
- |
- |
- |
Cost of share issue |
- |
- |
- |
- |
- |
- |
Balance at 30 June 2020 |
1,431 |
18,697 |
2,001 |
- |
(22,633) |
(504) |
The following describe the nature and purpose of each reserve
within owners’ equity:
Reserve |
Description and
Purpose |
Share capital |
Amount subscribed for
share capital at nominal value |
Share premium |
Amount subscribed for
share capital in excess of nominal value. |
Merger reserve |
Reserve created on
issue of shares on acquisition of subsidiaries in prior years. |
Foreign exchange
reserve |
Cumulative translation
differences of net assets of subsidiaries. |
Retained deficit |
Cumulative net gains
and losses recognised in the consolidated statement of
comprehensive income |
NOTES TO PRELIMINARY RESULTS FOR THE
YEAR ENDED 30 JUNE 2020
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The financial information set out above does not constitute
statutory accounts for the purpose of Section 434 of the Companies
Act 2006.The financial information has been extracted from the
statutory accounts of Altona energy Plc and is presented using the
same accounting policies, which have not yet been filed with the
Registrar of companies, and on which the auditors gave an
unqualified opinion on 28 February
2021 and included the following paragraph in their audit
report.
“Material uncertainty related to going
concern
We draw attention to note 1 in the
Financial Statements, which identifies conditions that may cast
doubt on the Group’s and Company’s ability to continue as a going
concern. The Group incurred a net loss of £229,000 during the year
ended 30 June 2020 and at that date
the Group has net current liabilities of £524,000. The Financial
Statements have been prepared on the going concern basis which is
reliant on a successful fundraise by the Group to fund its
operations for the foreseeable future. In December 2020, the Company raised £138,000 and in
January 2021, the Company received
subscription letters in respect of a fundraising of £523,000 before
expenses. At the date of this report the Company has received
£168,214 through the share placing and the balance is expected to
be received in February 2021. The
going concern assessment of the Group is reliant on receiving the
remaining £355,139 through the share placing. As stated in note 1,
these events or conditions, along with the other matters as set
forth in note 17, indicate that a material uncertainty exists that
may cast doubt on the ability of the Group and Company to continue
as a going concern.
Our opinion is not modified in
respect of this matter.”
The preliminary announcement of the results for the year ended
30 June 2019 was approved by the
board of directors on 28 January
2021.
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EARNINGS PER SHARE
The loss for the year attributed to shareholders is £228,000
(2019: loss £11,657,000).
This is divided by the weighted average number of Ordinary
shares outstanding calculated to be xx million (2019: 1.602
million) to give a basic loss per share of 14.23 pence (2019: basic loss per share of
894.84 pence).
In the current and prior year there were no potentially dilutive
ordinary shares at the year end because the share price at year end
was below the strike price of the potentially dilutive options and
warrants. The potential future share issues that may dilute
the profit/(loss) per share relate to options in issue disclosed at
note 16.
-ends-