31 March 2021
Altona Rare Earths Plc
(“Altona” or “the Company”)
INTERIM
RESULTS
Altona (AQSE: ANR.PL), a rare earths exploration and mining
company, announces its unaudited interim results for the six months
ended 31 December 2020.
HIGHLIGHTS
-
Entered into Heads of Agreement to acquire Ugandan Rare Earths
Exploration Project
-
Entered into Heads of Agreement to acquire Malawian Rare Earths
Exploration Project
-
Exploration Licence granted at Ugandan Nankoma Rare Earths
project
-
Completed first Placing to raise £140,000 at 6.5 pence in December
-
Appointed new Chairman and Geologist to the Board
-
Target generation and review of possible acquisitions in
Africa
POST PERIOD END HIGHLIGHTS
-
Signed Option Agreement with Leadway Group to acquire 51%
interest in Nankoma Rare Earths Project in Uganda
-
Completed further Placings to raise a further £642,000 at
6.5 pence
-
Two new highly experienced Non-Executive Directors appointed
-
Change of Company name to Altona Rare Earths Plc
-
Commenced Applications process for the LSE Standard Market
-
Entered into MoU with Mozambique Rare Earths Exploration Project
and started legal due diligence
-
Due diligence on Malawian Rare Earths Project started
-
Identified three potential new Rare Earths projects currently
being investigated
Christian Taylor-Wilkinson,
Chief Executive of Altona Rare Earths, commented, “The Company
has made a positive start with its investment strategy into rare
earths mining, having now secured one acquisition and looking to
finalise two more in the next quarter.”
-ends-
For further information, please visit www.altonaenergy.com (a
new website, currently being built, can be found at
www.altonaRE.com) or contact:
Altona Rare Earths
plc
Christian Taylor-Wilkinson, CEO
Martin Wood, Non-Executive Chairman |
+44 (0) 7795 168 157 |
Alfred Henry
Corporate Finance Ltd (AQSE Corporate Adviser)
Jon Isaacs / Nick Michaels |
+44 (0) 20 3772 0021 |
Company Information
Altona is a exploration and mining company focused on the
evaluation, development and extraction of rare earth metals in
Central and East 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 4.14 of the AQSE Growth Market Access
Rulebook.
Operational Review
The period under review is significant for Altona and its
shareholders, as it was the start of the Company’s new mining
investment strategy into Rare Earth Elements projects in
Africa.
Rare Earth Elements form a group of 17 essential period metals
used in many high-end technology industries, especially those with
a focus on green energy, including, electric vehicle batteries and
wind turbine motors, by their critical presence in the
manufacturing of permanent magnets. Rare earths are also used in a
number of everyday consumer items, such as mobile phones, computer
memory drives, camera lenses and catalytic converters. Their vital
use in military technology, such as missile guidance systems,
nuclear submarines and aircraft electronic systems, gives an
imperative to world’s governments to establish new and sustainable
sources of these “Critical Metals”, as over 90% of the world supply
is currently controlled by China.
Altona, by fulfilling its strategy to acquire majority interests
in a number of African rare earth mining projects, hopes to be part
of this valuable supply chain at some point in its future.
Chambe Rare Earths Project,
Malawi
On 29 July 2020 the Company signed
Heads of Agreement 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.
Altona is looking to acquire an initial 51% interest, rising to
75% on certain milestones being completed. The Company is still in
the process of completing its legal due diligence on this
acquisition project, which it hopes to complete in the next two
months.
Altona’s African based director and 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.
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.
Nankoma Rare Earths Project,
Uganda
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 has recently
announced exceptional exploration data, showing high levels of
critical REEs.
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.
The Company signed a binding option agreement over an initial
51% of the asset on 30 March 2021,
ahead of conducting legal and technical due diligence and an
in-depth study of the tenement’s geology, by perforning a scout
exploration drilling programme in Q2 2021.
The terms of the new Option Agreement state 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.
Monte Muambe Rare Earths Project,
Mozambique
The Company entered into a Memorandum of Understanding (“MoU”)
with Ussokoti Investimentos Limitada (“Ussokoti”) on 20 March 2020, to start a legal and technical Due
Diligence period of 90 days with a view to acquiring up to 70% in
the Monte Muambe Rare Earths Project, via an earn-in
arrangement.
The tenement is located in Tete Province, Northwestern Mozambique, held by Ussokoti
Investimentos Limitada under Prospecting Licence 7573L. The licence
covers a 4km diameter circular carbonatite intrusion.
The project has seen previous exploration for the mineral
fluorspar, between 2010 and 2012, including 165 reverse circulation
drillholes totaling over 12,000m.
Drill holes intersected Rare Earth Elements (“REE”) mineralisation
in at least four different zones within the intrusion, all of which
are open in several directions. Additionally, only about 5% of the
surface area of the intrusion have been drilled so far, thus
leaving significant potential for discoveries.
Available data indicate that REE mineralisation is at least
partly bastnaesite-hosted, and that individual REE intercept grades
reach up to 4.1%. Three significant intercepts have been
reported:
-
49m at 2.51% Total Rare Earths
Oxide (“TREO”) from the surface,
-
36m at 2.53% TREO from the
surface, and
-
96 m at 2.2% TREO from
surface,
These intercepts show that the project has the potential to host
a REE deposit amenable to open pit mining. Initial exploration work
will focus on expanding the mineralised zones and identifying new
ones while ascertaining the basic metallurgical characteristics of
the ore, which is essential for REE projects.
Board Appointments
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.
On 24 December, the board appointed Cedric Simonet as a Non-Executive Director.
Cedric is highly experienced geologist, who has spent most of the
past 25 years living and working in Africa and has 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.
Financial Review
The financial loss of the Group for the six months ended
31 December 2020 was £119,000 (H1
2019: £78,000), reflecting the Group’s increased activity in its
pursuit of its rare earths strategy.
The Group had total liabilities of £536,000 at 31 December 2020 (H1 2019: £377,000), being made
up of a bank loan and overdraft facility of £68,000 and the
remainder relating to the deferred salaries of Mr Taylor-Wilkinson
and Mr Sutherland and other accrued expenses. At the date of
this report, the liabilities have been reduced to £189,000, with a
portion of the amounts owing to Mr Taylor-Wilkinson and Mr
Sutherland having been settled in shares. Any further payment
of accrued salaries will not be made to the detriment of the
business’s planned future operations.
At the date of this report, the Group’s cash reserves places it
in a strong financial position to meet the immediate funding
requirements of the contracts that it has recently signed in order
to progress its strategy of acquiring new rare earth mining
projects in Africa.
Outlook
The rare earths sector is among the fastest growing mining
industries and its “technology metals” are among the most in-demand
elements; a statistic which is only likely to grow as the world
moves towards being more environmentally conscious and starts to
fulfil its green potential. Altona, through the three mining assets
it is working towards acquiring, will be excellently positioned to
take advantage of this rising need for new sources of rare earths
elements.
CONSOLIDATED STATEMENT OF
COMPREHENSIVE INCOME
FOR THE HALF YEAR ENDED 31 DECEMBER 2020
|
Notes |
Unaudited
Half-year ended
31 Dec 2020 |
Unaudited
Half-year ended
31 Dec
2019 |
Audited
Year
ended
30 June
2020 |
|
|
£’000 |
£’000 |
£’000 |
Other income |
|
- |
- |
42 |
Impairment
expense |
|
- |
- |
- |
Administrative
expenses |
|
(120) |
(78) |
(270) |
Operating
loss |
|
|
(78) |
(228) |
Operating loss and
loss before taxation |
|
(120) |
(78) |
(228) |
Income tax
expense |
2 |
- |
- |
- |
Loss after
taxation |
|
(120) |
(78) |
(228) |
|
|
|
|
|
Loss for the
period |
|
(120) |
(78) |
(228) |
|
|
|
|
|
Items that may be
reclassified subsequently to profit and loss: |
|
|
|
|
|
|
|
|
|
Exchange differences
on translation of foreign operations |
|
- |
- |
(1) |
Unrealised gain |
|
1 |
- |
- |
|
|
|
|
|
Total comprehensive
loss attributable to the equity holders of the parent
company |
|
(119) |
(78) |
(229) |
|
|
|
|
|
Earnings per share
(expressed in pence per share) – attributable to the equity holder
of the parent company |
|
|
|
|
Loss per share |
|
|
|
|
- Basic and
diluted |
3 |
(5.08p) |
(4.87p) |
(14.23p) |
|
|
|
|
|
CONSOLIDATED STATEMENTS OF FINANCIAL
POSITION
AS AT 31
DECEMBER 2020
|
|
Unaudited
31 Dec 2020
£’000 |
Unaudited
31 Dec
2019
£’000 |
Audited
30 June 2020
£’000 |
ASSETS |
|
|
|
|
Non-current assets |
|
|
|
|
Intangible assets |
|
25 |
- |
- |
Other receivables |
|
- |
3 |
- |
Total non-current assets |
|
25 |
3 |
- |
|
|
|
|
|
Current assets |
|
|
|
|
Trade and other receivables |
4 |
92 |
21 |
20 |
Cash and cash equivalents |
|
- |
- |
- |
Total current assets |
|
92 |
21 |
20 |
|
|
|
|
|
Total assets |
|
117 |
24 |
20 |
|
|
|
|
|
LIABILITIES |
|
|
|
|
Current liabilities |
|
|
|
|
Trade and other payables |
5 |
(536) |
(377) |
(524) |
Total current
liabilities |
|
(536) |
(377) |
(524) |
|
|
|
|
|
Total liabilities |
|
(536) |
(377) |
(524) |
|
|
|
|
|
NET ASSETS |
|
(419) |
(353) |
(504) |
|
|
|
|
|
Capital and reserves attributable
to owners of Altona Energy plc |
|
|
|
|
Share capital |
|
1,462 |
1,431 |
1.431 |
Share premium |
|
18,870 |
18,697 |
18,697 |
Merger reserve |
|
2,001 |
2,001 |
2,001 |
Foreign exchange reserve |
|
1,223 |
1,224 |
1,223 |
Retained losses |
|
(23,975) |
(23,706) |
(23,856) |
TOTAL EQUITY |
|
(419) |
(353) |
(504) |
|
|
|
|
|
CONSOLIDATED STATEMENT OF
CASHFLOWS
FOR THE HALF YEAR ENDED 31 DECEMBER 2020
|
Unaudited
Half-year ended
31 Dec
2020 |
Unaudited
Half-year ended
31 Dec
2019 |
Audited
Year
ended
30 June
2020 |
|
£’000 |
£’000 |
£’000 |
|
|
|
|
Operating activities |
|
|
|
Net loss for the period |
(119) |
(78) |
(228) |
Unrealised gains and losses |
(1) |
- |
- |
Cashflow from operations before
adjustments |
(120) |
(78) |
(228) |
|
|
|
|
(Increase) / decrease in
receivables |
(72) |
11 |
12 |
Increase in payables and
provisions |
8 |
67 |
188 |
Shares issued for services/fees |
93 |
- |
- |
Cash used in operations |
(91) |
- |
(28) |
Income tax benefit received |
- |
- |
- |
Net cash outflow used in
operating activities |
(91) |
- |
(28) |
|
|
|
|
Investing activities |
|
|
|
Interest received |
- |
- |
- |
Net cash outflow from investing
activities |
- |
- |
- |
|
|
|
|
Financing activities |
|
|
|
Proceeds from bank loans |
25 |
- |
- |
Increase/ (decrease in
overdraft) |
(55) |
- |
3 |
Proceeds from Directors Loans |
3 |
- |
- |
Proceeds from issue of shares |
125 |
- |
25 |
Costs of issue |
(7) |
|
- |
Net cash inflow from financing
activities |
91 |
- |
28 |
|
|
|
|
Increase/decrease in cash and
cash equivalents in period/ year |
- |
- |
- |
|
|
|
|
Cash and cash equivalents at
beginning of period / year |
- |
- |
- |
Cash and cash equivalents at end
of period / year |
- |
- |
- |
CONSOLIDATED STATEMENT OF CHANGES IN
EQUITY
FOR THE HALF YEAR ENDED 31 DECEMBER 2020
|
Share
capital |
Share
premium |
Merger
reserve |
Foreign exchange reserve |
Retained losses |
Total
shareholders’ equity |
|
£’000 |
£’000 |
£’000 |
£’000 |
£’000 |
£’000 |
|
|
|
|
|
|
|
Balance at 30 June
2019 |
1,431 |
18,697 |
2,001 |
1,224 |
(23,628) |
(275) |
Total comprehensive
loss for the period |
- |
- |
- |
- |
(78) |
(78) |
Balance at 31
December 2019 |
1,431 |
18,697 |
2,001 |
1,224 |
(23,706) |
(353) |
Total comprehensive
loss for the period |
- |
- |
- |
- |
(150) |
(150) |
Other comprehensive
income |
- |
- |
- |
(1) |
- |
(1) |
Balance at 30 June
2020 |
1,431 |
18,697 |
2,001 |
1,223 |
(23,856) |
(504) |
Total comprehensive
loss for the period |
- |
- |
- |
- |
(119) |
(119) |
Issue of share
capital |
31 |
180 |
- |
- |
- |
211 |
Share issue costs |
- |
(7) |
- |
- |
- |
(7) |
Balance at 31
December 2020 |
1,462 |
18,870 |
2,001 |
1,223 |
(23,975) |
(419) |
NOTES TO THE INTERIM REPORT
FOR THE HALF YEAR ENDING 31 DECEMBER 2020
1. GENERAL
INFORMATION
Altona Rare Earths Plc, (the “Company”) is a company registered
in England and Wales. The
Company changed its name from Altona Energy Plc on 27th
February 2021. The condensed
consolidated interim financial statements of the Company for the
six months ended 31 December 2020
comprise the result of the Company and its subsidiaries (together
referred to as the “Group”) and have been prepared in accordance
with the AQSE Growth Market Access Rulebook. As permitted, the
Company has chosen not to adopt IAS 34 “Interim Financial
Statement” in preparing these interim financial statements.
The consolidated interim financial information for the period
1 July 2020 to 31 December 2020 is unaudited. In the opinion of
the Directors the condensed interim financial information for the
period presents fairly the financial position, and results from
operations and cash flows for the period in conformity with the
generally accepted accounting principles consistently applied. The
condensed interim financial information incorporates unaudited
comparative figures for the interim period 1
July 2019 to 31 December 2019
and extracts from the audited financial statements for the year to
30 June 2020.
The financial information contained in this interim report does
not constitute statutory accounts as defined by section 435 of the
Companies Act 2006.
The comparatives for the full year ended 30 June 2020 are not the Company’s full statutory
accounts for that year. A copy of the statutory accounts for that
year has been delivered to the Registrar of Companies. The
auditor’s report on those financial statements was unqualified but
did include a reference to the uncertainties surrounding going
concern, to which the auditors drew attention by way of emphasis of
matter and did not contain a statement under s498 (2) – (3) of
Companies Act 2006. The interim report has not been audited or
reviewed by the Company’s auditor. The key risks and uncertainties
and critical accountancy estimates remain unchanged from
30 June 2020 and the accountancy
policies adopted are consistent with those used in the preparation
of its financial statements for the year ended 30 June 2020.
2. TAXATION
No current taxation has been provided due to losses in the
period.
3. LOSS PER
SHARE
The basic loss per share is derived by dividing the loss for the
period attributable to ordinary shareholders by the weighted
average number of shares in issue.
|
Unaudited
31 Dec 2020 |
Unaudited
31 Dec 2019 |
Audited
30 June 2020 |
|
|
|
|
Loss for the period (£’000) |
(119) |
(78) |
(228) |
Weighted average number of shares –
expressed in thousands |
2,344 |
1,602 |
1,606 |
Basic loss per share – expressed in
pence |
(5.08p) |
(4.87p) |
(14.23p) |
As the inclusion of the potential ordinary shares would result
in a decrease in the loss per share they are considered to be
anti-dilutive and, as such, the diluted loss per share calculation
is the same as the basic loss per share.
4. TRADE AND OTHER
RECEVIABLES
|
Unaudited
31 Dec
2020
£’000 |
Unaudited
31 Dec
2019
£’000 |
Audited
30 June 2020
£’000 |
Taxes and social
security receivables |
63 |
21 |
20 |
Prepayments and other
receivables |
29 |
- |
- |
|
92 |
21 |
20 |
The prepayments is made up of the prepaid part of the Chairman’s
salary of £35,000 which was paid upfront in shares, on his
appointment to the Board.
5. TRADE AND OTHER
PAYABLES
|
Unaudited
31 Dec
2020
£’000 |
Unaudited
31 Dec
2019
£’000 |
Audited
30 June 2020
£’000 |
Trade payables |
214 |
115 |
166 |
Shares to be issued |
32 |
- |
- |
Bank overdraft |
43 |
100 |
99 |
Bank loan |
25 |
- |
- |
Directors loans |
28 |
- |
20 |
Accruals and other payables |
194 |
162 |
239 |
|
536 |
377 |
524 |
6.
POST REPORTING DATE
EVENTS
The following events occurred subsequent to period end:
On 27 January 2021, the subsidiary
companies Arckaringa Coal Chemical Joint Venture Co Pty Ltd and
Altona Australia Pty Limited were deregistered. On
18th February 2021
Arckaringa Energy Pty Ltd was deregistered.
On 29 January 2021, the Company
announced a further fundraising of approximately £523,000 before
expenses at an issue price of 6.5
pence per share.
On 11 March 2021, due to excess
demand in the initial raise, the Company announced a further
fundraising of £259,000 at an issue price of 6.5 pence per share.
On 27 February 2021 the Company
changed its name to Altona Rare Earths plc.
On 30 March 2021 the Company
entered into an Option Agreement with Leadway Group Ltd to acquire
a 70% interest in the Nankoma Rare Earths Project in Uganda.