TIDMBEM
RNS Number : 9785U
Beowulf Mining PLC
29 November 2023
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulation ("MAR") (EU) No. 596/2014, as incorporated into UK law
by the European Union (Withdrawal) Act 2018. Upon the publication
of this announcement, this inside information is now considered to
be in the public domain.
29 November 2023
Beowulf Mining plc
("Beowulf" or the "Company")
Unaudited Financial Results for the Period Ended 30 September
2023
Beowulf Mining (AIM: BEM; Spotlight: BEO), the mineral
exploration and development company, announces its unaudited
financial results for the nine months ended 30 September 2023 (the
"Period").
Activities in the Period
Sweden
-- Following the announcement of the Scoping Study for Kallak
North in January 2023, the Company, through its 100% owned
subsidiary Jokkmokk Iron Mines AB ("Jokkmokk Iron"), continued to
engage with key stakeholders and advance a number of work streams.
The strategic review was advanced during the Period focusing on
options to optimise the development and ultimate value of the
asset.
-- Environmental baseline studies progressed in preparation for
the completion of the Environmental Impact Assessment ("EIA").
These studies included monitoring and assessment of nature values,
sound and vibration, hydrology and cultural heritage.
-- A formal recruitment process was initiated for a high-calibre
individual to lead the further development of the project,
including stakeholder engagement.
-- A number of public meetings with the communities of Jokkmokk,
including residents of the villages closest to the project, were
held.
Finland
-- During the Period, Beowulf, through its wholly owned Finnish
subsidiary Grafintec Oy, completed the Pre-Feasibility Study
("PFS") for the establishment of a Graphite Anode Materials Plant
("GAMP") located in the GigaVaasa area, in the municipality of
Korsholm on the west coast of Finland.
-- The PFS demonstrated very positive initial economics with a
post-tax net present value (using an 8% discount rate) of US$242
million and an internal rate of return of 39%.
-- The study, prepared by the engineering consultancy RB Plant
Construction Ltd ("RB Plant"), is based on an industrial plant with
a total production capacity of 20,000 tonnes per annum of Coated
Spherical Graphite ("CSPG") over an initial 10-year period and with
initial capital expenditure of US$117 million.
-- The Environmental Impact Assessment ("EIA") was progressed
during the Period and is expected to be completed in Q1 2024, after
which, the Company will initiate work on the Environmental Permit
process.
-- Following the conclusion of the PFS, bench-scale test work
has been initiated and will be followed by pilot-scale test work
with the Definitive Feasibility Study ("DFS") scheduled to begin in
mid-2024.
Kosovo
-- Vardar Minerals, which is 61.1 per cent owned by Beowulf,
undertook further low-cost field work including mapping, soil and
grab sampling and reconnaissance work across its tenement package
during the three months ended 30 September 2023.
-- The focus of the activity was on the Shala Central area where
the Company undertook mapping, surface sampling and a drone
magnetic survey.
-- Further reconnaissance work was undertaken on the Shala East
and Shala West licences in preparation for a systematic mapping and
sampling programme.
Corporate
-- On 10 July 2023, Mikael Schauman was appointed as Non-Executive Director.
-- On 21 July 2023, the settlement in relation to Kurt Budge's
resignation was agreed and subsequently paid on 27 July 2023.
-- On 7 August 2023, Ed Bowie joined the Company as Chief Executive Officer and Director.
-- On 16 August 2023, Ulla Sandborgh stepped down as Chief
Executive Officer of Jokkmokk Iron.
Financial
-- The underlying administration expenses of GBP580,203 in Q3
2023 exceeded Q3 2022 of GBP465,869. This increase is primarily due
to professional fees of GBP191,394 (Q3 2022: GBP130,675), P.R.
services of GBP30,704 (Q3 2022: GBP11,403) and legal fees of
GBP52,452 (Q3 2022: GBP4,643). Professional and legal fees
increased primarily due to non-recurring advisor fees in relation
to the group directorship changes within the period.
-- The consolidated loss before tax for Q3 2023 of GBP586,127
was in line with Q3 2022 of GBP593,178, due to a decrease in
finance charge to GBP166 (Q3 2022: GBP146,120), as a result of the
bridging loan being repaid in Q1 2023, being offset by the increase
in administration costs mentioned above.
-- The consolidated loss before tax for the nine months to 30
September 2023 increased to GBP2,385,743 (30 September 2022:
GBP1,276,785). This increase is primarily due to share-based
payment expenses of GBP363,354 (30 September 2022: GBP127,491),
professional fees of GBP596,590 (30 September 2022: GBP270,144),
directors and staff costs of GBP545,257 (30 September 2022:
GBP278,476), and a foreign currency loss of GBP172,563 (30
September 2022: GBP20,777) combined with finance costs in relation
to the bridging loan of GBP195,304 (30 September 2022: GBP146,080),
which was fully repaid in the period.
-- Consolidated basic and diluted loss per share for the quarter
ended 30 September 2023 was 0.05 pence (Q3 2022: loss of 0.07
pence).
-- The Company raised SEK 80.8 million (approximately GBP6.4
million) before expenses as part of the Capital Raise which closed
on 7 March 2023 , of which, the net proceeds have been used to
repay the bridging loan principal and interest of SEK 24.8 million
(approximately GBP2.04 million).
-- GBP1,719,066 in cash was held at 30 September 2023 (30 September 2022: GBP2,758,152).
-- Exploration assets increased to GBP14,331,830 at 30 September
2023 compared to GBP12,355,983 at 30 September 2022.
-- The cumulative translation losses held in equity increased by
GBP514,032 in the nine months ended 30 September 2023 to
GBP1,803,447 (31 December 2022: loss of GBP1,289,415). Much of the
Company's exploration costs are in Swedish Krona which has weakened
against the pound since 31 December 2022.
-- At 30 September 2023, there were 911,545,973 Swedish
Depository Receipts representing 78.77% per cent of the issued
share capital of the Company. The remaining issued share capital of
the Company is held in the UK.
Post Period Activities
Sweden
-- Following the end of the Period, the PFS for the Kallak
Project was initiated with the appointment of SLR Consultant
Limited ("SLR") as lead consultant. In addition, samples were
selected for metallurgical test work and the preliminary roadmap
for next phase of the project's development was defined.
-- Jokkmokk Iron was awarded exploration license Kallak nr 101.
The licence is a renewal of the previous exploration licence,
Kallak nr 1, held by the Company, and surrounds the Kallak
exploitation concession, Kallak K nr 1, awarded in March 2022.
Ed Bowie, Chief Executive Officer of Beowulf, commented:
"The Company has made significant progress on a number of
fronts. The strategic review of Kallak was initiated to identify
key value drivers for the project. As a result of the review, a
metallurgical test-work programme has been defined and initiated at
the front-end of the PFS, to demonstrate that Kallak has the
potential to produce a market leading iron ore concentrate which
has the potential to enhance the project returns. We continue to
engage with local stakeholders as we advance our technical and
environmental studies for the project.
"The PFS at Grafintec's GAMP project has demonstrated very
robust economics. Since the end of the Period, China announced
export controls on graphite products, highlighting the current
dependence of the global lithium-ion battery industry on China. At
the same time, the EU has voted in support of the Critical Raw
Materials Act ("CRM Act"), focused on ensuring secure supply of
graphite and other commodities essential for the green transition.
Grafintec's business strategy, to become an independent and secure
supplier of anode materials to battery manufacturers, is fully
aligned with the CRM Act.
"In Kosovo, Vardar Minerals has been completing low-cost but
critical baseline mapping and sampling on our extensive Shala
licences. The area contains kilometre-scale hydrothermal alteration
systems with significant base and precious metal content identified
in soils and grab samples. Follow-up work including detailed
mapping, infill sampling and drone magnetic surveys, are helping to
better define future drill targets."
Enquiries:
Beowulf Mining plc
Ed Bowie, Chief Executive Tel: +44 (0) 20 7583
Officer 8304
SP Angel
(Nominated Adviser & Broker)
Ewan Leggat / Stuart Gledhill Tel: +44 (0) 20 3470
/ Adam Cowl 0470
BlytheRay
Tim Blythe / Megan Ray Tel: +44 (0) 20 7138
3204
Cautionary Statement
Statements and assumptions made in this document with respect to
the Company's current plans, estimates, strategies and beliefs, and
other statements that are not historical facts, are forward-looking
statements about the future performance of Beowulf. Forward-looking
statements include, but are not limited to, those using words such
as "may", "might", "seeks", "expects", "anticipates", "estimates",
"believes", "projects", "plans", strategy", "forecast" and similar
expressions. These statements reflect management's expectations and
assumptions in light of currently available information. They are
subject to a number of risks and uncertainties, including, but not
limited to , (i) changes in the economic, regulatory and political
environments in the countries where Beowulf operates; (ii) changes
relating to the geological information available in respect of the
various projects undertaken; (iii) Beowulf's continued ability to
secure enough financing to carry on its operations as a going
concern; (iv) the success of its potential joint ventures and
alliances, if any; (v) metal prices, particularly as regards iron
ore. In the light of the many risks and uncertainties surrounding
any mineral project at an early stage of its development, the
actual results could differ materially from those presented and
forecast in this document. Beowulf assumes no unconditional
obligation to immediately update any such statements and/or
forecast.
About Beowulf Mining plc
Beowulf Mining plc ("Beowulf" or the "Company") is an
exploration and development company, listed on the AIM market of
the London Stock Exchange and the Spotlight Exchange in Sweden. The
Company listed in Sweden in 2008 and, at 30 September 2023, was
78.77 per cent owned by Swedish shareholders.
Beowulf's purpose is to be a responsible and innovative company
that creates value for our shareholders, wider society and the
environment, through sustainably producing critical raw materials,
which includes iron ore, graphite and base metals, needed for the
transition to a Green Economy.
The Company has an attractive portfolio of assets, including
commodities such as iron ore, graphite, gold and base metals, with
activities in exploration, the development of mines and downstream
production in Sweden, Finland and Kosovo.
The Company's most advanced project is the Kallak iron ore asset
in northern Sweden from which testwork has produced a 'market
leading' magnetite concentrate of 71.5 per cent iron content. In
the Kallak area, the Mineral Resources of the deposits have been
classified according to the PERC Standards 2017, as was reported by
the Company via RNS on 25 May 2021, based on a revised resource
estimation by Baker Geological Services. The total Measured and
Indicated resource reports at 132 million tonnes ("Mt") grading
28.3 per cent iron ("Fe"), with an Inferred Mineral Resource of 39
Mt grading 27.1 per cent Fe.
In Finland, Grafintec, a wholly-owned subsidiary, is developing
a resource footprint of natural flake graphite and the capability
to serve the anode manufacturing. Grafintec is working towards
creating a sustainable value chain in Finland from high quality
natural flake graphite resources to anode material production,
leveraging renewable power, targeting Net Zero CO (2) emissions
across the supply chain.
In Kosovo, the Company owns approximately 61.1 per cent of
Vardar Minerals ("Vardar"), which is focused on exploration in the
Tethyan Belt, a major orogenic metallogenic province for gold and
base metals. Vardar is delivering exciting results for its
Mitrovica licence which has several exploration targets, including
lead, zinc, copper and gold. It also has the Viti licence which is
showing potential for copper-gold porphyry mineralisation. With
Beowulf's support, Vardar is focused on making a discovery.
Kallak is the foundation asset of the Company, and, with
Grafintec and Vardar, each business area displays strong prospects,
presents opportunities to grow, with near-term and longer-term
value-inflection points.
Beowulf wants to be recognised for living its values of Respect,
Partnership and Responsibility. The Company's ESG Policy is
available on the website following the link below:
https://beowulfmining.com/about-us/esg-policy/
BEOWULF MINING PLC
CONDENSED CONSOLIDATED INCOME STATEMENT
FOR THE NINE MONTHS TO 30 SEPTEMBER 2023
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited)
3 months 3 months 9 months 9 months 12 months
ended 30 ended 30 ended 30 ended 30 ended 31
September September September September December
2022
2023 2022 2023 2022
GBP
Notes GBP GBP GBP GBP
Continuing operations
Administrative expenses (580,203) (465,869) (2,270,959) (1,200,815) (1,843,570)
Impairment of exploration
assets (8,232) - (8,232) - -
Operating loss (588,435) (465,869) (2,279,191) (1,200,815) (1,843,570)
Gain on disposal of
investment - - - - 21,951
Finance costs (166) (146,120) (195,901) (146,237) (304,806)
Finance income 2,474 19 6,111 49 176
Grant income - 18,792 83,238 70,218 84,797
------------ ------------ ------------- ------------- -------------
Loss before and after
taxation (586,127) (593,178) (2,385,743) (1,276,785) (2,041,452)
============ ============ ============= ============= =============
Loss attributable to:
Owners of the parent (567,924) (579,997) (2,328,669) (1,224,658) (1,948,459)
Non-controlling interests (18,203) (13,181) (57,074) (52,127) (92,993)
(586,127) (593,178) (2,385,743) (1,276,785) (2,041,452)
============ ============ ============= ============= =============
Loss per share attributable
to the owners of the
parent:
Basic and diluted (pence) 3 (0.05) (0.07) (0.22) (0.15) (0.23)
BEOWULF MINING PLC
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE LOSS
FOR THE NINE MONTHS TO 30 SEPTEMBER 2023
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited)
3 months 3 months 9 months 9 months 12 months
ended 30 ended 30 ended 30 ended 30 ended 31
September September September September December
2022
2023 2022 2023 2022
GBP
GBP GBP GBP GBP
Loss for the
period/year (586,127) (593,178) (2,385,743) (1,276,785) (2,041,452)
Other
comprehensive
income /(loss)
Items that may
be reclassified
subsequently to
profit
or loss:
Exchange
gain/(losses)
arising on
translation
of foreign
operations 242,667 118,105 (541,940) 63,197 (32,945)
------------ ------------ ------------- ------------- -------------------------------------------------------------------------------------------------------------------
Total comprehensive
loss (343,460) (475,073) (2,927,683) (1,213,588) (2,074,397)
============ ============ ============= ============= ===================================================================================================================
Total
comprehensive
loss
attributable to:
Owners of the (330,220) (2,841,861) (2,020,889)
parent (477,478) (1,193,404)
Non-controlling
interests (13,240) 2,405 (85,822) (20,184) (53,508)
------------ ------------
(343,460) (475,073) (2,927,683) (1,213,588) (2,074,397)
============ ============ ============= ============= ===================================================================================================================
BEOWULF MINING PLC
CONDENSED COMPANY STATEMENT OF COMPREHENSIVE INCOME
FOR THE NINE MONTHS TO 30 SEPTEMBER 2023
(Unaudited) (Unaudited) (Unaudited)
3 months 9 months 9 months
ended 30 ended 30 ended 30
(Unaudited) September September September (Audited)
12 months
3 months ended 31
ended 30 December
September2023 2022 2023 2022 2022
Notes GBP GBP GBP GBP GBP
Continuing operations
Administrative expenses (584,303) (337,723) (2,207,759) (836,429) (1,090,254)
Operating loss (584,303) (337,723) (2,207,759) (836,429) (1,090,254)
Gain on disposal of
investment - - - - 21,951
Finance cost - (146,080) (195,304) (146,080) (304,529)
Finance income 2,362 18 5,849 48 170
Loss before and after
taxation and total
comprehensive loss (581,941) (483,785) (2,397,214) (982,461) (1,372,662)
================ ============ ============= ============ =============
Loss per share attributable
to the owners of the
parent:
Basic and diluted (pence) 3 (0.05) (0.06) (0.23) (0.12) (0.17)
BEOWULF MINING PLC
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 SEPTEMBER 2023
(Unaudited) (Unaudited) (Audited)
As at As at As at
30 September 30 September 31
2023 2022 December
GBP GBP 2022
GBP
ASSETS Notes
Non-current assets
Intangible assets 6 14,356,876 12,355,983 13,002,465
Property, plant and equipment 98,206 118,269 129,715
Loans and other financial
asset 5,122 5,218 5,181
Right of use asset 10,324 3,386 19,279
-------------- -------------- -------------
14,470,528 12,482,856 13,156,640
-------------- -------------- -------------
Current assets
Trade and other receivables 149,713 150,101 220,427
Cash and cash equivalents 1,719,066 2,758,152 1,776,556
-------------- -------------- -------------
1,868,779 2,908,253 1,996,983
-------------- -------------- -------------
TOTAL ASSETS 16,339,307 15,391,109 15,153,623
============== ============== =============
EQUITY
Shareholders' equity
Share capital 4 11,571,875 8,317,106 8,317,106
Share premium 27,141,444 24,689,311 24,689,311
Merger reserve 137,700 137,700 137,700
Capital contribution
reserve 46,451 46,451 46,451
Share-based payment reserve 5 879,452 403,052 516,098
Translation reserve (1,802,607) (1,185,731) (1,289,415)
Accumulated losses (22,700,224) (19, 599,613) (20,323,414)
-------------- -------------- -------------
15,274,091 12, 808,276 12,093,837
Non-controlling interests 531,051 602,056 568,732
-------------- -------------- -------------
TOTAL EQUITY 15,805,142 13,410,332 12,662,569
-------------- -------------- -------------
LIABILITIES
Current liabilities
Trade and other payables 523,602 260,497 625,730
Lease liability 9,012 3,475 10,840
Borrowings 7 - 1,716,805 1,845,947
-------------- -------------- -------------
532,614 1,980,777 2,482,517
-------------- -------------- -------------
NON-CURRENT LIABILITIES
Lease liability 1,551 - 8,537
TOTAL LIABILITIES 534,165 1,980,777 2,491,054
-------------- -------------- -------------
TOTAL EQUITY AND LIABILITIES 16,339,307 15,391,109 15,153,623
============== ============== =============
BEOWULF MINING PLC
CONDENSED COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 30 SEPTEMBER 2023
(Unaudited) (Unaudited) (Audited)
As at 30 As at 30 As at 31
September September December
2023 2022 2022
GBP GBP GBP
ASSETS Notes
Non-current assets
Investments 3,944,781 3,594,786 3,645,181
Loans and other financial
assets 12,611,534 10,502,521 11,084,289
Property, plant and equipment 678 904 834
16,556,993 14,098,211 14,730,304
------------- ------------- -------------
Current assets
Trade and other receivables 58,512 24,664 53,284
Cash and cash equivalents 1,572,690 2,395,871 1,667,840
------------- -------------
1,631,202 2,420,535 1,721,124
------------- ------------- -------------
TOTAL ASSETS 18,188,195 16,518,746 16,451,428
============= ============= =============
EQUITY
Shareholders' equity
Share capital 4 11,571,875 8,317,106 8,317,106
Share premium 27,141,444 24,689,311 24,689,311
Merger reserve 137,700 137,700 137,700
Capital contribution
reserve 46,451 46,451 46,451
Share-based payment reserve 5 879,452 403,052 516,098
Accumulated losses (21,714,669) (18,927,254) (19,317,455)
------------- ------------- -------------
TOTAL EQUITY 18,062,253 14,666,366 14,389,211
------------- ------------- -------------
LIABILITIES
Current liabilities
Trade and other payables 125,942 135,575 216,270
Borrowings 7 - 1,716,805 1,845,947
------------- -------------
TOTAL LIABILITIES 125,942 1,852,380 2,062,217
------------- ------------- -------------
TOTAL EQUITY AND LIABILITIES 18,188,195 16,518,746 16,451,428
============= ============= =============
BEOWULF MINING PLC
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE NINE MONTHS TO 30 SEPTEMBER 2023
Share Share Merger Capital Share-based Translation Accumulated Total Non- Total
capital premium reserve contribution payment reserve losses controlling equity
reserve reserve interest
GBP GBP GBP GBP GBP GBP GBP GBP GBP GBP
At 1 January
2022 8,317,106 24,689,311 137,700 46,451 668,482 (1,216,985) (18,470,675) 14,171,390 325,039 14,496,429
Loss for the
period - - - - - - (1,224,658) (1,224,658) (52,127) (1,276,785)
Foreign
exchange
translation - - - - - 31,254 - 31,254 31,943 63,197
------------ ------------ --------- ------------- ------------ ------------- -------------- -------------- ------------ --------------
Total
comprehensive
loss - - - - - 31,254 (1,224,658) (1,193,404) (20,184) (1,213,588)
Transactions
with
owners
Equity-settled
share-based
payment
transactions - - - - 127,491 - - 127,491 - 127,491
Step up
interest
in subsidiary - - - - - - (297,201) (297,201) 297,201 -
Transfer on
lapse
of options - - - - (392,921) - 392,921 - -
------------ ------------ --------- ------------- ------------ ------------- -------------- -------------- ------------ --------------
At 30 September
2022
(Unaudited and
Restated) 8,317,106 24,689,311 137,700 46,451 403,052 (1,185,731) (19,599,613) 12,808,276 602,056 13,410,332
============ ============ ========= ============= ============ ============= ============== ============== ============ ==============
Loss for the
period - - - - - - (723,801) (723,801) (40,866) (764,667)
Foreign
exchange
translation - - - - - (103,684) - (103,684) 7,542 (96,142)
------------ ------------ --------- ------------- ------------ ------------- -------------- -------------- ------------ --------------
Total
comprehensive
loss - - - - - (103,684) (723,801) (827,485) (33,324) (860,809)
Transactions
with
owners
Equity-settled
share-based
payment
transactions - - - - 113,046 - - 113,046 - 113,046
At 31 December
2022
(Audited) 8,317,106 24,689,311 137,700 46,451 516,098 (1,289,415) (20,323,414) 12,093,837 568,732 12,662,569
============ ============ ========= ============= ============ ============= ============== ============== ============ ==============
Loss for the
period - - - - - - (2,328,669) (2,328,669) (57,074) (2,385,743)
Foreign
exchange
translation - - - - - (513,192) - (513,192) (28,748) (541,940)
------------ ------------ --------- ------------- ------------ ------------- -------------- -------------- ------------ --------------
Total
comprehensive
loss - - - - - (513,192) (2,328,669) (2,841,861) (85,822) (2,927,683)
Transactions
with
owners
Issue of share
capital 3,254,769 3,654,829 - - - - - 6,909,598 - 6,909,598
Cost of issue - (1,202,696) - - - - - (1,202,696) - (1,202,696)
Equity-settled
share-based
payment
transactions - - - - 363,354 - - 363,354 - 363,354
Step
acquisition
of Subsidiary - - - - - - (48,141) (48,141) 48,141 -
At 30 September
2023
(Unaudited) 11,571,875 27,141,444 137,700 46,451 879,452 (1,802,607) (22,700,224) 15,274,091 531,051 15,805,142
============ ============ ========= ============= ============ ============= ============== ============== ============ ==============
BEOWULF MINING PLC
CONDENSED COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE NINE MONTHS TO 30 SEPTEMBER 2022
Share capital Share Merger Capital Share-based Accumulated Total
premium reserve contribution payment losses
reserve reserve
GBP GBP GBP GBP GBP GBP GBP
At 1 January
2022 8,317,106 24,689,311 137,700 46,451 668,482 (18,337,714) 15,521,336
Loss for the
period - - - - - (982,461) (982,461)
Total
comprehensive
loss - - - - - (982,461) (982,461)
Transactions
with owners
Equity-settled
share-based
payment
transactions - - - - 127,491 - 127,491
Transfer on
lapse of
options - - - - (392,921) 392,921 -
------------------ ------------ -------- ------------- ------------ -------------- ------------
At 30 September
2022
(Unaudited) 8,317,106 24,689,311 137,700 46,451 403,052 (18,927,254) 14,666,366
================== ============ ======== ============= ============ ============== ============
Loss for the
period - - - - - (390,201) (390,201)
Total
comprehensive
loss - - - - - (390,201) (390,201)
Transactions
with owners
Equity-settled
share-based
payment
transactions - - - - 113,046 - 113,046
At 31 December
2022
(Audited) 8,317,106 24,689,311 137,700 46,451 516,098 (19,317,455) 14,389,211
================== ============ ======== ============= ============ ============== ============
Loss for the
period - - - - - (2,397,214) (2,397,214)
Total
comprehensive
loss - - - - - (2,397,214) (2,397,214)
Transactions
with owners
Issue of share
capital 3,254,769 3, 654,829 - - - - 6,909,598
( 1,202,696
Cost of issue - ) - - - - (1,202,696)
Equity-settled
share-based
payment
transactions - - - - 363,354 - 363,354
At 30 September
2023
(Unaudited) 11,571,875 27,141,444 137,700 46,451 879,452 (21,714,669) 18,062,253
================== ============ ======== ============= ============ ============== ============
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL
STATEMENTS FOR THE NINE MONTHS TO 30 SEPTEMBER 2023
1. Nature of Operations
Beowulf Mining plc (the "Company") is domiciled in England and
Wales. The Company's registered office is 201 Temple Chambers, 3-7
Temple Avenue, London, EC4Y 0DT. This consolidated financial
information comprises that of the Company and its subsidiaries
(collectively the 'Group' and individually 'Group companies'). The
Group is engaged in the acquisition, exploration and evaluation of
natural resources assets and has not yet generated revenues.
2. Basis of preparation
The condensed consolidated financial information has been
prepared on the basis of the recognition and measurement
requirements of UK-adopted International Accounting Standards
(IFRS). The accounting policies, methods of computation and
presentation used in the preparation of the interim financial
information are the same as those used in the Group's audited
financial statements for the year ended 31 December 2022.
The financial information in this statement does not constitute
full statutory accounts within the meaning of Section 434 of the UK
Companies Act 2006. The financial information for the period ended
30 September 2023 is unaudited and has not been reviewed by the
auditors. The financial information for the twelve months ended 31
December 2022 is an extract from the audited financial statements
of the Group and Company. The auditor's report on the statutory
financial statements for the year ended 31 December 2022 was
unqualified but did include a material uncertainty relating to
going concern.
The financial statements are presented in GB Pounds Sterling.
They are prepared on the historical cost basis or the fair value
basis where the fair valuing of relevant assets and liabilities has
been applied.
Management have prepared cash flow forecasts which indicate that
the Group will need to raise further funds within the next 12
months for corporate overheads and to advance its key projects and
investments.
The Directors are confident they are taking all necessary steps
to ensure that the required finance will be available, and they
have successfully raised equity finance in the past. They have
therefore concluded that it is appropriate to prepare the financial
statements on a going concern basis. However, while they are
confident of being able to raise the new funds as they are
required, there are currently no agreements in place, and there can
be no certainty that they will be successful in raising the
required funds within the appropriate timeframe.
These conditions indicate the existence of a material
uncertainty which may cast significant doubt over the Group's and
the Company's ability to continue as a going concern and that it
may be unable to realise its assets and discharge its liabilities
in the normal course of business. The financial statements do not
include any adjustments that would result if the Company was unable
to continue as a going concern .
3. Loss per share
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited)
3 months 3 months 9 months 9 months 12 months
ended ended ended ended ended
Group 30 30 30 30 31 December
September September September September 2022
2023 2022 2023 2022
Loss for the period/year
attributable to shareholders
of the Company (GBP's) (567,924) (579,997) (2,328,669) (1,224,658) (1,948,459)
Weighted average
number of ordinary
shares 1,157,187,463 831,710,636 1,061,458,984 831,710,636 831,710,636
------------- ----------- ------------- ------------ -----------
Loss per share (p) (0.05) (0.07) (0.22) (0.15) (0.23)
============= =========== ============= ============ ===========
Parent
Loss for the period/year
attributable to shareholders
of the Company (GBP's) (581,941) (483,785) (2,397,214) (982,461) (1,372,662)
Weighted average
number of ordinary
shares 1,157,187,463 831,710,636 1,061,458,984 831,710,636 831,710,636
------------- ----------- ------------- ------------ -----------
Loss per share (p) (0.05) (0.06) (0.23) (0.12) (0.17)
============= =========== ============= ============ ===========
4. Share capital
(Unaudited) (Unaudited) (Audited)
30 September 30 September 31 December
2023 2022 2022
GBP GBP GBP
Allotted, issued and fully
paid
Ordinary shares of 1p each 11,571,875 8,317,106 8,317,106
------------ ------------ -----------
The number of shares in issue was as follows:
Number
of shares
Balance at 1 January 2022 831,710,636
Issued during the period -
Balance at 30 September 2022 831,710,636
Issued during the period -
--------------
Balance at 31 December 2022 831,710,636
Issued during the period 325,476,827
--------------
Balance at 30 September 2023 1,157,187,463
--------------
5. Share based payments
During the period ended 30 September 2023, 12,250,000 options
were granted (2022: 23,250,000). The options outstanding as at 30
September 2023 have an exercise price in the range of 1 pence to
7.35 pence (2022: 1.00 pence to 7.35 pence) and a weighted average
remaining contractual life of 6 years, 21 days (2022: 7 years, 199
days).
The share-based payments expense for the options for the period
ended 30 September 2023 was GBP 363,354 (2022: GBP127,491).
The fair value of share options granted and outstanding were
measured using the Black-Scholes model, with the following
inputs:
2023 2022 2019
Number of options 12,250,000 20,750,000 2,500,000 9,250,000
Fair value at grant
date 0.52p 3.12p 3.59p 1.15p
Share price 1.68p 4.00p 4.00p 5.65p
Exercise price 2.06p 5.25p 1.00p 7.35p
Expected volatility 55.20% 100.00% 100% 51.89%
Option life 5 years 10 years 10 years 5 years
Risk free interest
rate 4.800% 4.480% 4.520% 0.718%
The options issued will be settled in the equity of the Company
when exercised and have a vesting period of one year from date of
grant.
Weighted
average
exercise
Reconciliation of options in issue Number price(GBP's)
Outstanding at 1 January 2023 32,500,000 0.055
Granted during the period 12,250,000 0.021
Outstanding at 30 September 2023 44,750,000 0.046
----------- --------------
Exercisable at 30 September 2023 37,250,000 0.042
=========== ==============
6. Intangible Assets: Group
Exploration Other intangible Total
assets assets
Net book value GBP GBP GBP
As at 31 December 2022 (Audited) 13,002,465 - 13,002,465
As at 30 September 2023 (Unaudited) 14,332,665 24,211 14,356,876
============ ================= ============
Exploration costs As at 30 As at 31
September December
2023 2022
(Unaudited) (Audited)
GBP GBP
Cost
At 1 January 13,002,465 11,235,656
Additions for the year - cash 1,652,163 1,536,674
Additions for the year - non-cash 215,122 314,272
Foreign exchange movements (528,853) (47,149)
Impairment (8,232) (36,988)
Total 14,332,665 13,002,465
============ ===========
The net book value of exploration costs is comprised of
expenditure on the following projects:
As at As at
30 31
September December
2023 2022
(Unaudited) (Audited)
GBP GBP
Project Country
Kallak Sweden 8,786,492 7,666,563
Ågåsjiegge Sweden - 7,718
Åtvidaberg Sweden 340,491 358,694
Pitkäjärvi Finland 1,659,714 1,641,836
Rääpysjärvi Finland 55,560 148,430
Karhunmäki Finland 170,268 56,089
Luopioinen Finland 4,523 4,257
Emas Finland 27,074 1,663
Shala Kosovo 105,281 -
Mitrovica Kosovo 1,757,837 2,430,150
Viti Kosovo 1,425,425 687,065
14,332,665 13,002,465
============ ============
Total Group exploration costs of GBP 14,332,665 are currently
carried at cost in the financial statements. Impairment of GBP
8,232 has been recognised during the period in Ågåsjiegge (2022:
GBPNil).
Accounting estimates and judgements are continually evaluated
and are based on a number of factors, including expectations of
future events that are believed to be reasonable under the
circumstances. Management are required to consider whether there
are events or changes in circumstances that indicate that the
carrying value of this asset may not be recoverable.
The most significant exploration asset within the Group is
Kallak. The Company applied for an Exploitation Concession for
Kallak North in April 2013 and this was finally awarded in March
2022.
Kallak is included in the condensed financial statements as at
30 September 2023 as an intangible exploration licence with a
carrying value of GBP 8.79m. Given the Exploitation Concession was
awarded, Management have considered that there is no current risk
associated with Kallak and thus have not impaired the project.
Other intangible assets As at 30 As at 31
September December
2023 2022
(Unaudited) (Audited)
GBP GBP
Cost
At 1 January - -
Additions in the period 24,316 -
Foreign exchange movements (105) -
Total 24,211 -
============ ==========
Other intangible assets capitalised are development costs
incurred following the feasibility of GAMP project. This
development has attained a stage that it satisfies the requirements
of IAS 38 to be recognised as intangible asset in that it has the
potential to completed and used, provide future economic benefits,
its costs can be measured reliably and there is the intention and
ability to complete. The development costs will be held at cost
less impairment until the completion of the GAMP project at which
stage they will be transferred to the value of the Plant.
7. Borrowings
(Unaudited) (Unaudited)
As at As at
30 September 31
2023 December
2022
GBP GBP
Opening balance 1,845,947 -
Funds advanced - 1,554,381
Finance costs 195,304 304,529
Effect of FX (2,818) (12,963)
Funds repaid (2,038,433) -
- 1,845,947
============== ===========
On 3 July 2022, the Company secured a Bridging loan from Nordic
investors of SEK 22 million (approximately GBP1.76 million). The
Loan had a fixed interest rate of 1.5 percent per stated 30-day
period during the duration. Accrued interest was compounding. The
Loan had a commitment fee of 5 per cent and a Maturity Date of 28
February 2023.
The Loan was accounted for using an amortised cost using an
effective rate of interest.
It became apparent that due to the timing of the receipt of the
funds from the Rights Issue the Company was not in a position to
pay back the bridging loan facility at its maturity. The outcome of
this was that the holder of the loan enforced the penalty interest
for entering another 30-day period, which was circa 1 million SEK
(approx. GBP82k). The loan principal and interest totalling
GBP2.04m was repaid via a deduction to the gross proceeds from the
Capital Raise in March 2023.
8. Prior period correction
The correction of GBP59,209 between non-controlling interest and
accumulated losses is required to remedy an error in the step
acquisition movement from 49.4 per cent to 51.4 per cent. There is
no impact to the statement of comprehensive income or any other
statement as a result of this correction.
Consolidated statement of Financial Position
(Unaudited
(Unaudited) and Restated)
As at Correction As at
30 September of prior 30 September
2022 period error 2022
GBP GBP GBP
TOTAL ASSETS 15,391,109 - 15,391,109
============== ============== ===============
EQUITY
Shareholders' equity
Share capital 5 8,317,106 - 8,317,106
Share premium 24,689,311 - 24,689,311
Capital contribution
reserve 46,451 - 46,451
Share-based payment
reserve 6 403,052 - 403,052
Merger reserve 137,700 - 137,700
Translation reserve (1,185,731) (1,185,731)
Accumulated losses (19,658,822) 59,209 (19,599,613)
-------------- -------------- ---------------
Total equity 12,749,067 59,209 12,808,276
-------------- -------------- ---------------
Non-controlling interests 661,265 (59,209) 602,056
-------------- -------------- ---------------
TOTAL EQUITY 13,410,332 - 13,410,332
-------------- -------------- ---------------
TOTAL LIABILITIES 1,980,777 - 1,980,777
-------------- -------------- ---------------
TOTAL EQUITY AND LIABILITIES 15,391,109 - 15,391,109
============== ============== ===============
9. Post balance sheet events
There have been no significant events since the end of the
reporting period
10. Availability of interim report
A copy of these results will be made available for inspection at
the Company's registered office during normal business hours on any
weekday. The Company's registered office is at 207 Temple Chambers,
3-7 Temple Avenue, London, EC4Y 0DT. A copy can also be downloaded
from the Company's website at www.beowulfmining.com. Beowulf Mining
plc is registered in England and Wales with registered number
02330496.
** Ends **
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
QRTFVLLLXFLEFBX
(END) Dow Jones Newswires
November 29, 2023 02:00 ET (07:00 GMT)
Beowulf Mining (LSE:BEM)
Historical Stock Chart
From Apr 2024 to May 2024
Beowulf Mining (LSE:BEM)
Historical Stock Chart
From May 2023 to May 2024
