TIDMBOD
RNS Number : 3704X
Botswana Diamonds PLC
20 December 2023
20 December 2023
Botswana Diamonds PLC
("Botswana Diamonds" or the "Company")
Annual Results for the Year Ended 30 June 2023
Notice of Annual General Meeting
Botswana Diamonds plc (AIM: BOD) today announces its audited
annual results for the year ended 30 June 2023.
Chairman's Statement
Botswana Diamonds has been active in the period under review.
This, at a time when the market for exploration shares is virtually
non-existent and during a period of great political and economic
turmoil.
In South Africa we produced diamonds. We intend to bring our
Thorny River diamond ground into operation in 2024. We used our
adjacent Marsfontein licence as a proof-of-concept project. We
joint ventured with a competent contractor on a 15% / 20% royalty
basis depending on size. We are satisfied with the operation though
only producing 1,741 carats of diamonds. We intended to produce at
Marsfontein until all permits were issued for Thorny River.
However, a 40% fall in diamond prices combined with a 30% increase
in energy prices, eliminated positive cash flows for most diamond
producers, so the Marsfontein operation is temporarily on care and
maintenance. The current expectation is that production will start
again in January 2024.
While mining Marsfontein, we discovered a higher-grade area
which we were preparing to mine when closedown occurred. This will
be our target area when mining resumes. The intention is then to
move on to Thorny River where operations will be significantly
larger. Final approvals are, we are told, imminent.
I should remind you that Thorny River is estimated to contain
anywhere from 1.2m - 2.1m tons of ore at an expected grade between
46 and 76 carats per hundred tons. Diamond value per carat is
expected to be between US $120 and $220 per carat. The mining plan
has already been prepared. Transferring from Marsfontein to Thorny
River will take only a matter of weeks as it will use the same
mining equipment.
Botswana
Botswana is still our principal focus. We remain convinced that
more diamond deposits are still to be discovered.
In mining, improved milling, interparticle crushing and XRT
sorting will enhance recoveries. Solar power will significantly
reduce energy costs in remote locations.
In exploration, we are excited by advances in data analytics.
Botswana Diamonds owns the largest diamond data set in the country
including 375,000km of airborne geophysical data, 228,000km of soil
sample results, 606 ground geophysical surveys and 32,000km of
drill logs. This is where Artificial Intelligence ('AI'), and
Machine Learning offers huge scope. In the coming year we will
structure a way forward to mine this data.
You may recall we had a joint venture with Alrosa, they did good
work on 16 licences held in Sunland, the joint venture company, but
for corporate reasons they withdrew from Botswana in 2018. The 16
Sunland licences expired, and the ground returned to the State. We
analysed the data and identified four licences that we believe to
have significant potential. A 100% owned Botswana Diamonds
subsidiary has applied for the four licences. We are hopeful that
they will be awarded in the near future.
You will notice in the accounts a write-off of exploration
expenditure of GBP3.2m. This is a non-cash item, relating to the
closedown of the Sunland joint venture. The money was spent several
years ago. While the exploration did not find commercial deposits,
it provided us with valuable data which we used to select the four
licences currently under application with the Botswana Department
of Mines.
We own 100% of the KX36 discovery in the Kalahari. This is a 3.5
hectare kimberlite pipe with an indicated resource of 17.9 million
tonnes at 35 carats per 100 tons ('cpht'), and a further inferred
resource of 6.7 million tonnes at 36 cpht. Overall value per carat
is US $65. There is a bulk sampling plant onsite, including
crushing, screening, scrubbing Dense Media Separation and X-Ray
recovery.
No other kimberlite has yet been found in the surrounding
ground. Kimberlites occur in clusters, so the KX36 discovery is
anomalous. We therefore acquired licences surrounding KX36.
Following detailed work on the data we already held, we identified
4 high interest anomalies, all within a 6-kilometre radius of KX36.
We ran ground magnetic surveys over these anomalies. They further
confirmed our findings. We have conducted a detailed ground
geophysical survey over the four areas which, if successful, will
lead to drilling.
KX36 is only 60km away from the Ghaghoo diamond mine, which is
currently closed. Over the past two years we have studied the
economics of reopening the mine. We are seeking a partner to joint
venture the Ghaghoo mine. We would then add KX36 to the Ghaghoo
resource - enhancing the value of both. Together, they represent a
significant diamond resource. Recent turmoil in world financial
markets complicated the task, management is developing options.
Our other significant interest in Botswana is the Maibwe
project. Maibwe was a joint venture between a Botswana copper
company, BCL, a local Botswana entrepreneur and a South African
company, Siseko, where Botswana holds a 51% interest. BCL went into
liquidation due to its non-diamond activities - but not before
exploration found four kimberlite pipes containing diamonds. One of
the pipes contained significant quantities of microdiamonds.
The BCL holding has been sold to Future Minerals and Siseko.
Botswana Diamonds has therefore increased its overall stake in the
JV to 26%. Further drilling is required on the licences, especially
focusing on the kimberlite containing microdiamonds.
The Diamond Market
No review can ignore upheavals in the diamond market. Economic
uncertainty impacts consumers purchases, particularly of luxury
goods. Interest rate increases impact diamond wholesalers who
traditionally hold large debt-financed inventories. They cut back
their purchases of rough uncut stones, crashing prices in the
process.
Another concern is the impact of lab grown diamonds. They have
been around for many years, but improvements in technology and low
barriers to entry attract new entrants. One consequence has been a
dramatic fall in the prices of lab grown diamonds particularly at
the smaller end. They are becoming a commodity.
Natural diamonds on the other hand are very rare. An analogy can
be made with automobiles. A Ferrari and a Ford Mondeo are both good
cars but that's the only commonality they share.
Owning a natural diamond is an experience. They really are
forever. Owning one represents a range of human emotions and tells
a lot about the owner.
A case can be made whereby buying a lab grown diamond will
introduce a wider audience to diamonds. Remember 3 billion people
are going to enter the middle class in the coming two decades. They
represent a massive potential market for diamonds. China is already
second only to the US as a market for diamonds. The hope is that
consumers will trade up to a natural diamond.
Meanwhile, the supply of natural stones is not expected to grow.
Certainly, the life of some mines will be shortened by the drop in
prices. Botswana is the largest diamond producer in the world - by
value, producing high quality large stones. This market is least
likely to be impacted by the price falls and lab grown
diamonds.
The Future of Botswana Diamonds
We live in hope that stock market interest in diamond companies
will revive. Exploration costs money and even if successful, does
not produce revenue for many years. The collapse of interest by
investors in the AIM market in London has hurt all explorers. In
recent years the pool of new investors has shrunk dramatically
meaning little exploration. Mines have finite, often short lives,
so it is highly likely that a future scarcity of many minerals,
including diamonds, will occur. The surviving producers should
benefit.
Botswana Diamonds has a loyal but dwindling cohort of investors.
We have sought to generate revenue thereby avoiding fundraising and
developing late-stage projects such as Thorny River.
Bringing the Ghaghoo mine back into operation if it can be
achieved and this will cost a fraction of a new mine cost and take
a small fraction of the time it takes for a discovery to become a
mine.
We believe strongly that more deposits will be discovered in
Botswana. But we are not blind to other opportunities. We continue
to spend time and money in Zimbabwe, which is long known to have
diamond potential. We have made some progress.
We continue to look at older discoveries and former mines in
South Africa where, by the application of new thinking and
technology commercially viable projects can be found. We have been
granted a prospecting licence on the Reivilo cluster of kimberlites
in South Africa.
We have acquired a library of data on these kimberlites in
return for a 3% royalty. The data is now under review.
Current ongoing operations are funded by private investors, most
of whom are close to the board of directors.
Diamond prices have risen in recent weeks while operating costs
have either stabilised or dropped. There is cautious optimism for
2024. Any upswing will transform sentiment.
John Teeling
Chairman
19 December 2023
Annual Report and Notice of Annual General Meeting
The Company's Annual Report and Accounts for the year ended 30
June 2023 (the "Annual Report") will be mailed shortly only to
those shareholders who have elected to receive it. Otherwise,
shareholders will be notified that the Annual Report and Accounts
will be available on the website at www.botswanadiamonds.co.uk .
Copies of The Annual Report will also be available for collection
from the company's registered office at Suite 1, 7th Floor, 50
Broadway, London SW1H 0BL.
The Annual General Meeting ("AGM") is due to be held Wednesday
24(th) January 2024 at The Hilton London Paddington, 146 Praed St,
London W2 1EE, United Kingdom at 11.00am. A Notice of the AGM will
be included in the Annual Report.
The information communicated within this announcement is deemed
to constitute inside information as stipulated under the Market
Abuse Regulations (EU) No 596/2014 which is part of UK law by
virtue of the European Union (Withdrawal) Act 2018. The person who
arranged for the release of this announcement on behalf of the
Company was John Teeling, Director.
A copy of this announcement is available on the Company's website, at www.botswanadiamonds.co.uk
Enquiries:
Botswana Diamonds PLC
John Teeling, Chairman +353 1 833 2833
James Campbell, Managing Director +27 83 457 3724
Jim Finn, Director +353 1 833 2833
Nominated & Financial Adviser
Strand Hanson Limited
Ritchie Balmer
Rory Murphy
David Asquith +44 (0) 20 7409 3494
Broker
First Equity Limited
Jason Robertson +44 (0) 207 374 2212
Public Relations
BlytheRay +44 (0) 207 138 3206
Megan Ray +44 (0) 207 138 3553
Said Izagaren +44 (0) 207 138 3206
Teneo
Luke Hogg +353 (0) 1 661 4055
Alan Tyrrell +353 (0) 1 661 4055
www.botswanadiamonds.co.uk
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEARED 30
JUNE 2023
2023 2022
GBP GBP
REVENUE
Royalties 15,231 -
Operating Expenses (5,503) -
------------ -----------
GROSS PROFIT 9,728 -
Administrative expenses (566,935) (485,612)
Impairment of exploration and evaluation assets (3,124,284) (253,380)
------------ -----------
OPERATING LOSS (3,681,491) (738,992)
LOSS FOR THE YEAR BEFORE TAXATION (3,681,491) (738,992)
Income tax expense - -
------------ -----------
LOSS AFTER TAXATION (3,681,491) (738,992)
Other Comprehensive Income
Items that may be reclassified subsequently to profit or loss
Exchange difference on translation of foreign operations 299,492 22,562
------------ -----------
TOTAL COMPREHENSIVE INCOME FOR THE YEAR (3,381,999) ( 716,430)
============ ===========
Loss per share - basic (0.38p) (0.09p)
Loss per share - diluted (0.38p) (0.09p)
============ ===========
CONSOLIDATED BALANCE SHEET AS AT 30 JUNE 2023
30 June 2023 30 June 2022
GBP GBP
ASSETS:
NON CURRENT ASSETS
Intangible assets 5,442,385 8,184,621
Plant and equipment 207,640 207,640
------------- -------------
5,650,025 8,392,261
------------- -------------
CURRENT ASSETS
Other receivables 282,553 48,981
Cash and cash equivalents 199,438 158,476
------------- -------------
481,991 207,457
------------- -------------
TOTAL ASSETS 6,132,016 8,599,718
------------- -------------
LIABILITIES:
CURRENT LIABILITIES
Trade and other payables (802,428) (734,181)
------------- -------------
TOTAL LIABILITIES (802,428) (734,181)
------------- -------------
NET ASSETS 5,329,588 7,865,537
============= =============
EQUITY
Called-up share capital - deferred shares 1,796,157 1,796,157
Called-up share capital - ordinary shares 2,609,695 2,197,680
Share premium 12,220,614 11,487,087
Share based payment reserves 111,189 111,189
Retained deficit (10,424,780) (6,443,797)
Translation reserve - (299,492)
Other reserve (983,287) (983,287)
------------- -------------
TOTAL EQUITY 5,329,588 7,865,537
============= =============
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEARED 30
JUNE 2023
Called-up Share Share based Retained Translation Other Total
Share Premium Payment Deficit Reserve Reserves
Capital GBP Reserve GBP GBP GBP
GBP GBP
At 30 June
2021 3,777,962 10,984,362 111,189 (5,704,805) (322,054) (983,287) 7,863,367
Issue of
shares 215,875 522,225 - - - - 738,100
Share issue
expenses - (19,500) - - - - (19,500)
Loss for the
year and
total
comprehensive
income - - - (738,992) 22,562 - (716,430)
------------- ------------- ------------ ------------- ------------- ------------- ------------
At 30 June
2022 3,993,837 11,487,087 111,189 (6,443,797) (299,492) (983,287) 7,865,537
------------- ------------- ------------ ------------- ------------- ------------- ------------
Issue of
shares 412,015 733,527 - - - - 1,145,542
Share issue - - - - - - -
expenses
Transfer of
reserves - - - (299,492) 299,492 - -
Loss for the
year and
total
comprehensive
income (3,681,491) - - (3,681,491)
------------- ------------- ------------ ------------- ------------- ------------- ------------
At 30 June
2023 4,405,852 12,220,614 111,189 (10,424,780) - (983,287) 5,329,588
============= ============= ============ ============= ============= ============= ============
CONSOLIDATED CASH FLOW STATEMENT FOR THE YEARED 30 JUNE 2023
30 June 2023 30 June 2022
GBP GBP
CASH FLOW FROM OPERATING ACTIVITIES
Loss for the year (3,681,491) (738,992)
Foreign exchange losses 1,626 15,932
Impairment of exploration and evaluation assets 3,124,284 253,380
------------- -------------
(555,581) (469,680)
MOVEMENTS IN WORKING CAPITAL
Increase/(Decrease) in trade and other payables 68,247 (9,968)
Decrease/(Increase) in other receivables 15,344 (6,943)
------------- -------------
NET CASH USED IN OPERATING ACTIVITIES (471,990) (486,591)
------------- -------------
CASH FLOW FROM INVESTING ACTIVITIES
Additions to exploration and evaluation assets (132,322) (222,259)
------------- -------------
NET CASH USED IN INVESTING ACTIVITIES (132,322) (222,259)
------------- -------------
CASH FLOW FROM FINANCING ACTIVITIES
Proceeds from share issue 646,900 738,100
Share issue costs - (19,500)
------------- -------------
NET CASH GENERATED FROM FINANCING ACTIVITIES 646,900 718,600
------------- -------------
NET INCREASE IN CASH AND CASH EQUIVALENTS 42,588 9,750
Cash and cash equivalents at beginning of the financial year 158,476 164,658
Effect of foreign exchange rate changes (1,626) (15,932)
------------- -------------
CASH AND CASH EQUIVALENTS AT OF THE financial YEAR 199,438 158,476
============= =============
1. ACCOUNTING POLICIES
The accounting policies and methods of computation followed in
these financial statements are consistent with those published in
the Group's Annual Report for the year ended 30 June 2022. The
financial statements have also been prepared in accordance with
International Financial Reporting Standards (IFRSs) as issued by
the International Accounting Standards Board (IASB).
The financial information set out below does not constitute the
Group's financial statements for the year ended 30 June 2023 or 30
June 2022, but is derived from those accounts. The financial
statements for the year ended 30 June 2022 have been delivered to
Companies House and those for the year ended 30 June 2023 will be
delivered to Companies House shortly
The auditors have reported on the 2022 statements; their report
was unqualified and did not contain a statement under section
498(2) or 498(3) of the Companies Act 2006.
2. GOING CONCERN
The Group incurred a loss for the year of GBP3,381,999 (2022:
loss of GBP716,430) after exchange differences on retranslation of
foreign operations of GBP299,492 (2022: GBP22,562) at the balance
sheet date. The Group had net current liabilities of GBP320,437
(2022: GBP526,724) at the balance sheet date. These conditions
represent material uncertainties that may cast doubt on the Group's
ability to continue as a going concern.
The directors have prepared cashflow projections and forecasts
for a period of not less than 12 months from the date of this
report which indicate that the group will require additional
funding for working capital requirements and develop existing
projects. As the Group is not revenue or cash generating it relies
on raising capital from the public market. Subsequent to year end
the Company has raised a total of GBP380,000 from a placing.
Further details are outlined in Note 11.
As in previous years the Directors have given careful
consideration to the appropriateness of the going concern basis in
the preparation of the financial statements and believe the going
concern basis is appropriate for these financial statements. The
financial statements do not include any adjustments that would
result if the Group was unable to continue as a going concern.
3. LOSS PER SHARE
Basic loss per share is computed by dividing the loss after
taxation for the year available to ordinary shareholders by the
weighted average number of ordinary shares in issue and ranking for
dividend during the year. Diluted earnings per share is computed by
dividing the profit or loss after taxation for the year by the
weighted average number of ordinary shares in issue, adjusted for
the effect of all dilutive potential ordinary shares that were
outstanding during the year.
The following table sets forth the computation for basic and
diluted earnings per share (EPS):
2023 2022
GBP GBP
Numerator
For basic and diluted EPS Loss after taxation (3,681,491) (738,992)
============ ============
Denominator No.
For basic and diluted EPS 977,271,808 844,141,491
============ ============
Basic EPS (0.38p) (0.09p)
Diluted EPS (0.38p) (0.09p)
============ ============
The following potential ordinary shares are anti-dilutive and
are therefore excluded from the weighted average number of shares
for the purposes of the diluted earnings per share:
No. No.
Share options 11,410,000 11,410,000
=========== ===========
4. INTANGIBLE ASSETS
Exploration and evaluation assets:
Group Group
2023 2022
GBP GBP
Cost:
At 1 July 9,806,497 9,562,528
Additions 382,048 222,259
Transfer Vutomi investment - -
Exchange gain - 21,710
----------- ----------
At 30 June 10,188,545 9,806,497
=========== ==========
Impairment:
At 1 July 1,621,876 1,368,496
Impairment 3,124,284 253,380
----------- ----------
At 30 June 4,746,160 1,621,876
=========== ==========
Carrying Value:
At 1 July 8,184,621 8,194,032
=========== ==========
At 30 June 5,442,385 8,184,621
=========== ==========
Segmental analysis Group Group
2023 2022
GBP GBP
Botswana 3,549,716 6,635,686
South Africa 1,892,669 1,548,935
Zimbabwe - -
----------- ----------
5,442,385 8,184,621
=========== ==========
Exploration and evaluation assets relate to expenditure incurred
in exploration for diamonds in Botswana and South Africa. The
directors are aware that by its nature there is an inherent
uncertainty in exploration and evaluation assets and therefore
inherent uncertainty in relation to the carrying value of
capitalized exploration and evaluation assets.
The Group incurred expenditure to date of GBP3,124,284 on
certain licences held in Botswana. During the current year these
licences lapsed and were not renewed. The directors decided to
fully impair the expenditure and accordingly, an impairment charge
of GBP3,124,284 was recorded in the current year.
On 11 November 2014 the Brightstone block was farmed out to BCL
Investments (Proprietary) Limited, a Botswana Company, who assumed
responsibility for the work programme. Botswana Diamonds had
retained a 15% equity interest in the project. On 20 July 2022 the
Group increased its' stake to 26% equity interest in the
project.
On 6 February 2017 the Group entered into an Option and Earn-In
Agreement with Vutomi Mining Pty Ltd and Razorbill Properties 12
Pty Ltd (collectively known as 'Vutomi'), a private diamond
exploration and development firm in South Africa. Pursuant to the
terms of the Agreement, Botswana Diamonds earned a 40% equity
interest in the project. A separate agreement for funding of
exploration resulted in the Company's interest in Vutomi increasing
from 40% to 45.94%.
On 28 September 2022 the Board announced that it had exercised
its pre-emptive right to acquire the outstanding third-party
interests in Vutomi and had increased its' interest from 45.94% to
74%.
The consideration for Vutomi comprised 56,989,330 new ordinary
shares of GBP0.0025 each in the Company ("Consideration Shares").
There are no lock-in arrangements and the Consideration Shares were
issued in two tranches. 28,464,665 Consideration Shares (First
Tranche) were issued to the vendors on 28 September 2022 and the
balance of 28,524,665 (Second Tranche) were issued on 27 January
2023.
The Company also agreed that immediately on completion of the
Acquisition, the Company would sell 26% of Vutomi for a deferred
consideration of US$316,333 to the Company's local South African
Empowerment partner, Baroville Trade and Investments 02 Proprietary
Limited ("Baroville"), in order to comply with South African
requirements on empowerment ownership, which will be funded by a
loan from Botswana Diamonds. On completion, the Company therefore
owns 74% of Vutomi.
The realisation of these intangible assets is dependent on the
successful discovery and development of economic diamond resources
and the ability of the Group to raise sufficient finance to develop
the projects. It is subject to a number of significant potential
risks, as set out below.
The Group's exploration activities are subject to a number of
significant and potential risks including:
- licence obligations;
- exchange rate risks;
- uncertainties over development and operational costs;
- political and legal risks, including arrangements with
governments for licenses, profit sharing and taxation;
- foreign investment risks including increases in taxes,
royalties and renegotiation of contracts;
- title to assets;
- financial risk management ;
- going concern; and
- operational and environmental risks.
Included in additions for the year are GBP71,521 (2022:
GBP71,768) of directors' remuneration which has been capitalized.
This is for time spent directly on the operations rather than on
corporate activities.
5. PLANT AND EQUIPMENT
2023 2022
GBP GBP
At 1 July 207,640 206,788
Additions - -
Exchange variance - 852
-------- --------
At 30 June 207,640 207,640
======== ========
On 18 July 2020 the Group entered into an agreement to acquire
the KX36 Diamond discovery in Botswana, along with two adjacent
Prospecting Licences and a diamond processing plant. These
interests are part of a package held by Sekaka Diamond Exploration
(Pty) Ltd. The acquisition was completed on 20 November 2020. The
diamond processing plant is a recently constructed, fit-for-purpose
bulk sampling plant on site. The sampling plant includes crushing,
scrubbing, dense media separation circuits and x-ray recovery
modules within a secured area.
6. INVESTMENT IN SUBSIDIARES
2023 2022
GBP GBP
At 1 July 224,850 224,850
Transfer from Intangible Assets 738,353
Additions 498,642
Less 26% transfer to BEE partners (248,916) -
---------- --------
At 30 June 1,212,929 224,850
========== ========
Botswana Diamonds entered into a Sale of Shares Agreement with
Petra Diamonds Limited ("Petra") and Kalahari Diamonds Limited
("Kalahari Diamonds") on 18 July 2020 to acquire the entire issued
share capital of Sekaka Diamond Exploration (Pty) Ltd ("Sekaka")
currently held by Kalahari Diamonds, a wholly-owned subsidiary of
Petra. The acquisition was completed on 20 November 2020.
On 28 September 2022 the Board announced that it had exercised
its pre-emptive right to acquire the outstanding third-party
interests in Vutomi and had increased its' interest from 45.94% to
74%. The value of the investment of GBP988,079 relates to the 74%
interest in the Vutomi project. Further information is detailed in
Note 4 above.
In the opinion of the directors, at 30 June 2023, the fair value
of the investments in subsidiaries is not less than their carrying
amounts.
7. CALLED-UP SHARE CAPITAL
Deferred Shares - nominal value of 0.75p
Number Share Capital Share Premium
GBP GBP
At 1 July 2021 and 2022 239,487,648 1,796,157 -
-------------- -------------- --------------
At 30 June 2022 and 2023 239,487,648 1,796,157 -
============== ============== ==============
Ordinary Shares - nominal value of 0.25p
Allotted, called-up and fully paid:
Number Share Capital Share Premium
GBP GBP
At 1 July 2021 792,721,902 1,981,805 10,984,362
Issued during the year 86,350,000 215,875 522,225
Share issue expenses - - (19,500)
-------------- -------------- --------------
At 30 June 2022 879,071,902 2,197,680 11,487,087
-------------- -------------- --------------
Issued during the year 164,805,997 412,015 733,527
Share issue expenses - - -
-------------- -------------- --------------
At 30 June 2023 1,043,877,899 2,609,695 12,220,614
============== ============== ==============
Movements in share capital
On 4 July 2022, a total of 1,666,667 warrants were exercised at
a price of 0.60p per warrant for GBP10,000.
On 8 September 2022, a total of 47,000,000 warrants were
exercised at a price of 0.60p per warrant for GBP282,000.
On 28 September 2022, the Company issued 28,464,665 new ordinary
shares of 0.25p each as the First Tranche of consideration shares
to be issued to the vendors of Vutomi. Further information is
detailed in Note 4.
On 27 January 2023, a total of 58,737,455 warrants were
exercised at a price of 0.60p per warrant for GBP352,425.
On 27 January 2023, the Company issued 28,524,665 new ordinary
shares of 0.25p each as the Second Tranche of consideration shares
to be issued to the vendors of Vutomi. Further information is
detailed in Note 4.
8. SHARE-BASED PAYMENTS
SHARE OPTIONS
The Group issues equity-settled share-based payments to certain
directors and individuals who have performed services for the
Group. Equity-settled share-based payments are measured at fair
value at the date of grant. Fair value is measured by use of a
Black-Scholes valuation model.
The Group plan provides for a grant price equal to the average
quoted market price of the ordinary shares on the date of
grant.
30/06/2023 2023 30/06/2022 2022
Options Weighted average exercise Options Weighted average exercise
price in pence price in pence
Outstanding at beginning of
year 11,410,000 5.14 11,410,000 5.14
Issued - - - -
----------- ----------------------------- ----------- -----------------------------
Outstanding at end of the
year 11,410,000 5.14 11,410,000 5.14
=========== ============================= =========== =============================
Exercisable at end of the
year 11,410,000 5.14 11,410,000 5.14
=========== ============================= =========== =============================
WARRANTS
30/06/2023 2023 30/06/2022 2022
Warrants Weighted average exercise Warrants Weighted average exercise
price in pence price in pence
Outstanding at beginning of
year 162,816,667 1.07 139,166,667 0.60
Issued - - 55,000,000 2.0
Exercised (107,816,667) 0.60 (31,350,000) 0.60
Expired - - - -
-------------- --------------------------- ------------- ---------------------------
Outstanding at end of the
year 55,000,000 2.0 162,816,667 1.07
============== =========================== ============= ===========================
Refer to note 7 Called up Share Capital for the details of the
share options and warrants.
9. OTHER RESERVES
Share Based Payment Reserve Translation Reserve Other Reserves Total
GBP GBP GBP GBP
Balance at 30 June 2021 111,189 (322,054) (983,287) (1,194,152)
Foreign Exchange Gain/Loss 22,562 22,562
---------------------------- -------------------- --------------- ------------
Balance at 30 June 2022 111,189 (299,492) (983,287) (1,171,590)
Foreign Exchange Gain/Loss 299,492 299,492
---------------------------- -------------------- --------------- ------------
Balance at 30 June 2023 111,189 - (983,287) (872,098)
============================ ==================== =============== ============
Share Based Payment Reserve
The share based payment reserve arises on the grant of share
options under the share option plan as detailed in Note 8.
Translation Reserve
The translation reserve arises from the translation of foreign
operations.
Other Reserves
During 2010 the Company acquired certain assets and liabilities
from African Diamonds plc, a Company under common control. The
assets and liabilities acquired were recognised at their book value
and no goodwill was recognised on acquisition. The difference
between the book value of the assets acquired and the purchase
consideration was recognised directly in reserves.
10. RETAINED DEFICIT
Group
2023 2022
GBP GBP
Opening Balance (6,443,797) (5,704,805)
Transfer translation reserve (299,492) -
Loss for the year (3,681,491) (738,992)
------------- ------------
Closing Balance (10,424,780) (6,443,797)
============= ============
Retained Deficit
Retained deficit comprises of losses incurred in the current and
prior years.
11. POST BALANCE SHEET EVENTS
On 27 November 2023, the Company raised GBP380,000 through a
placing of 76,000,000 new ordinary shares at a placing price of
0.5p per share. Each placing share has one warrant attached with
the right to subscribe for one new ordinary share at a price of
0.5p for a period of two years from 27 November 2023.
There were no other significant post balance sheet events since
year end.
12. GENERAL INFORMATION
The Annual Report and Accounts will be mailed shortly only to
those shareholders who have elected to receive it. Otherwise,
shareholders will be notified that the Annual Report and Accounts
will be available on the website at www.botswanadiamonds.co.uk .
Copies of The Annual Report will also be available for collection
from the company's registered office at Suite 1, 7th Floor, 50
Broadway, London SW1H 0BL
13. ANNUAL GENERAL MEETING
The Annual General Meeting is due to be held on Wednesday 24(th)
January 2024 at The Hilton London, Paddington, 146 Praed St, London
W2 1EE, United Kingdom at 11.00am. A Notice of the Annual General
Meeting is included in the Company's Annual Report.
ENDS
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END
MSCFFUFWUEDSEDE
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