TIDMEUZ
RNS Number : 2873O
Europa Metals Ltd
01 October 2019
1 October 2019
Europa Metals Ltd
("Europa Metals", the "Company" or the "Group") (AIM, AltX:
EUZ)
Final Results for the Year Ended 30 June 2019
Europa Metals, the European lead-zinc explorer, announces its
final results for the year ended 30 June 2019.
A pdf copy of the full Annual Report and Accounts is available
at the following link:
http://www.europametals.com/site/news-announcements/annual-reports-archive
and will be posted to shareholders in due course.
For further information on the Company, please visit
www.europametals.com or contact:
Europa Metals Ltd
Dan Smith, Non-Executive Director and Company Secretary
(Australia)
T: +61 417 978 955
Laurence Read, Executive Director (UK)
T: +44 (0)20 3289 9923
Strand Hanson Limited (Nominated Adviser)
Rory Murphy/Matthew Chandler
T: +44 (0)20 7409 3494
Turner Pope Investments (TPI) Limited (Joint Broker)
Andy Thacker/Zoe Alexander
T: +44 (0)203 657 0050
Brandon Hill Capital (Joint Broker)
Jonathan Evans/Oliver Stansfield
T: +44 (0)20 3463 5000
Sasfin Capital Proprietary Limited (a member of the Sasfin
group)
Sharon Owens
T (direct): +27 11 809 7762
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulation (EU) No. 596/2014.
Extracts from the Company's audited Report and Accounts are set
out below:
Chairman's Statement
Dear Shareholders,
The first half of 2019 saw Europa Metals adapt to challenging
equity market conditions and lay the foundations for what has been
a successful exploration programme, and at the time of writing the
Company has recently completed, and announced assay results in
respect of its latest drill campaign into the high-grade area of
its Toral lead, zinc and silver project located in the province of
Castilla y León, north west Spain (the "Toral Project" or "Toral").
The Company is targeting its first independent Indicated JORC
(2012) resource estimate and awaiting metallurgical testwork
results in order to make an initial determination of potential
future concentrate products to enable preliminary marketing
discussions to occur with third party concentrate buyers such as
smelters and trading houses.
At the start of 2019, the Board took the decision to delist the
Company from the ASX and move to AltX from the Main Board of the
Johannesburg Stock Exchange ("JSE"), a process that was concluded
in March 2019, with Europa Metals' primary listing now being on
AIM, with a secondary listing on the junior, AltX, exchange in
South Africa. While Europa Metals remains an Australian
incorporated and registered company, the vast majority of its
shareholders were, and still are, registered in the UK with
approximately 83 per cent. of its listed securities being traded on
AIM at the time of the delisting process, which along with the
Company's focus on European project opportunities and limited
operations and institutional or retail investor interest in
Australia, led to the decision to remove unnecessary administrative
costs and regulatory processes for a junior resources company.
Subsequently, the Company announced the full economics from its
independent scoping study for Toral showing an economically robust
project with deliverable capex focused on a high grade zone within
a 400-1,000 metre horizon below surface. As an experienced mining
engineer, I look forward to progressing our team's understanding of
Toral as I believe there are a number of areas where efficiencies
and cost savings can be identified, thereby improving the overall
project economics.
As noted above, the initial part of the year was not without its
challenges, with some of the worst equity market conditions for
mining companies that I have encountered in my career, reflecting a
combination of factors including uncertainty within the UK investor
community over the domestic political situation and wider, industry
issues, such as the US-China trade discussions continuing to drag
on without resolution. This regrettably culminated in Europa Metals
raising funds at a sizeable discount to the prevailing market share
price towards the end of March 2019, albeit introducing a new
strategic investor into the Company.
The additional funds raised enabled the Company to, inter alia,
prosecute a highly efficient diamond drilling campaign into the
centre of the Toral Project. Whilst the first drill hole deviated
significantly, subsequent drilling has returned a pattern of
promising assay results which we believe should deliver the
project's first Indicated resource in early Q4 2019, thereby
increasing confidence in the initial scoping study economics. More
importantly, a 58kg core sample was retrieved for metallurgical
testwork, as per our stated campaign objectives, which is currently
being undertaken by Wardell Armstrong LLP in the UK.
Why are such impending project milestones important though? In
essence, there is no point in drilling for the sake of it and each
hole we complete in Toral is carefully considered. Generating what
will hopefully be a good initial Indicated resource serves to
demonstrate to stakeholders that the project's resource and grade
stacks up, particularly for potential funders, as we look to
progress Toral towards a development decision, and we firmly
believe that Toral looks like a project that can potentially be
developed in a comparatively short time frame and on a manageable
amount of capital expenditure. The forthcoming metallurgical
results will provide us with: (i) a better defined production flow
sheet, and assist the team in optimisation work and the
identification of efficiencies versus the initial scoping study
findings; and (ii) an initial indication of the kind of future
saleable products that can be produced. In all likelihood,
potential future products will comprise a zinc concentrate and a
lead-silver concentrate, and by determining the separation
characteristics and make-up of the products available from Toral
the Company can assess the most likely sales channels in a market
that is currently seeing strong performances in zinc, lead and
silver pricing.
Over a longer time horizon, I am also interested to see copper
again being identified from drilling activity, but this time at
depth. With a resource open at around 1,000-1,200 metres depth,
future exploration outside of the existing resource area would
potentially seek to understand if thickening of mineralisation
occurs and whether there is a significant copper presence in the
deposit from a separate thermal event.
The period under review also saw beneficial changes to the local
mining law dividing the development permissions for projects into
two groups; energy related (coal and uranium) and all other mining
activity (which covers lead, zinc and silver, being Toral's focus).
Our expectation is that mining activities involving well known
lead, zinc and silver commodities will have fewer legislative
issues surrounding them than project's within the energy grouping.
The results of our exploration activities will be communicated to
all stakeholders within our local area, in addition to the wider
community and offtake groups, and our next phase of work for Toral
will see us progress our formal stakeholder engagement process and
move towards a potential mining licence application and development
decision.
I would like to take this opportunity to thank all of our
shareholders, advisers and other stakeholders for their support and
interest in our activities and look forward to reporting further
progress in due course.
Yours faithfully,
Colin Bird
Non-Executive Chairman
Directors Report
Corporate
On 25 January 2019, the Company announced that it had submitted
a formal application to the ASX requesting the removal of the
Company from the Official List pursuant to ASX Listing Rule 17.11,
which became effective on 8 March 2019. In addition, the Company
successfully applied to move from the Main Board of the
Johannesburg Stock Exchange ("JSE") to the AltX. The Company's
securities commenced trading on the AltX with effect from 1 March
2019. Accordingly, Europa Metals' primary listing became the AIM
market operated by London Stock Exchange plc ("AIM") with a
secondary listing on the AltX.
Capital Raisings
On 10 August 2018, the Company announced that it had completed a
fundraising of GBP563,516 (approximately A$0.98m) before expenses
through a placing arranged by the Company's joint broker, Turner
Pope Investments (TPI) Limited ("Turner Pope"), of, in aggregate,
727,118,650 new ordinary shares of no par value each in the capital
of the Company (the "Placing Shares") at a price of 0.0775 pence
per new ordinary share (the "Placing"). The Placing Shares were
issued to certain new and existing investors utilising the
remainder of the Company's then existing placement capacity under
ASX Listing Rule 7.1.
On 29 March 2019, the Company announced that it had raised, in
aggregate, GBP960,000 (before expenses), through a placing of, and
subscription for, in aggregate, 6,400,000,000 new ordinary shares
of no par value each in the capital of the Company ("Ordinary
Shares") at an issue price of 0.015 pence per share (the "Issue
Price") (the "Fundraising"). The Fundraising comprised a placing of
6,200,000,000 new Ordinary Shares via the Company's joint broker,
Turner Pope, as agent of the Company, and a subscription for a
further 200,000,000 new Ordinary Shares at the Issue Price, with
certain existing and new investors, including Brandon Hill Capital
Limited ("Brandon Hill Capital"), which invested in a principal
capacity. Colin Bird and Myles Campion, Non-Executive Chairman and
Techical Director of the Company respectively, also participated in
the Fundraising on the same terms as the other investors.
In addition, one warrant exercisable for a period of 3 years
from the date of admission of the new Ordinary Shares to trading on
AIM ("Admission") at a subscription price of 0.025p per Ordinary
Share were issued to all participants in the Fundraising for every
two new Ordinary Shares subscribed (the "Warrants"). Accordingly,
3,200,000,000 Warrants were issued pursuant to the Fundraising.
Both Turner Pope and Brandon Hill Capital were also issued with
300,000,000 and 50,000,000 warrants respectively to subscribe for
new Ordinary Shares at the Issue Price, exercisable for a period of
three years from Admission.
Options/Warrants
On 30 July 2018, the Company announced that 205,949,134 unlisted
options exercisable at GBP0.003 per share on or before 29 July
2018, had lapsed unexercised.
Shareholder Meetings
At the Annual General Meeting of the Company held on 5 November
2018, shareholders approved, inter alia, the re-election of Messrs
Kirby, Bird and Smith as directors, and ratified the Company's
abovementioned capital raising of approximately A$0.98 million
completed on 10 August 2018.
Joint Broker
On 29 March 2019, the Company announced the appointment of
Brandon Hill Capital as the Company's joint broker on AIM with
immediate effect.
Registered Office
On 24 September 2018, the Company announced a change to its
registered office and principal place of business to c/o Minerva
Corporate, Level 8, 99 St Georges Terrace, Perth WA, 6000.
Dividends
No dividend has been paid or declared since the start of the
financial year and the Directors do not recommend the payment of a
dividend in respect of the financial year (2018: Nil).
Principal activities
The principal activity of the entities within the consolidated
entity during the financial year was that of exploration for
minerals.
Review of operations and activities
Lead-Zinc-Silver Exploration Projects, Spain
On 16 July 2018, the Company announced that it had secured a
combined Reverse Circulation ("RC") and Diamond drilling rig (the
"Combination rig") for mobilisation to its wholly owned Toral
lead-zinc-silver project located in the Province of Le n, northern
Spain ("Toral" or the "Toral Project"), during August 2018. The
Combination rig and associated operating crew was supplied by
Sondeos y Perforaciones Industriales de Bierzo SA overseen by the
Company's on-site exploration team. The Combination rig is one of
only a few of its type in Spain and had been deployed on a series
of successful drilling programmes for other parties.
The Combination rig was successfully mobilised to site in late
August 2018 to commence a Phase I drilling campaign to initially
ascertain the potential continuation of the mineralised structure
outside of the current defined JORC (2012) resource area at Toral.
With a significant inferred resource estimate already established
for the main Toral project area, the extension drilling to the East
sought to identify the presence of further mineralisation/hosting
structures. On 28 August 2018, the Company also announced that it
had successfully completed the relogging of certain priority
intersections from the historical drill core from Toral stored at
the National Litoteca in Andalucía, Spain.
On 13 September 2018, the Company announced that the Board had
decided to initiate the Change of Land Use processes needed for the
potential full future development of a mine at Toral and had
engaged a specialist consultancy, MAGMA Soluciones Ambientales SL,
to progress the requisite applications across the three distinct
municipalities overlapping the project's licence area. The process
was estimated to take approximately 18 months.
On 20 September 2018, the Company announced that the
abovementioned re-logging of the historical drill core held at the
National Litoteca had resulted in significantly higher bulk density
measurements than those used for the maiden JORC (2012) resource
estimate completed by Addison Mining Services Limited ("AMS")
between November 2017 and January 2018, as announced by the Company
on 6 February 2018. The increase in bulk density values applied to
samples and their spatial distribution resulted in a material
change in the updated estimation of the inferred resource estimate
for the project. Ore tonnages were calculated by volume estimated
from solid models developed from mapping and drilling information
multiplied by rock density.
On 4 October 2018, the Company announced that, following the
successful mobilisation to site of the Combination rig, all of the
planned Phase I RC drilling at the Toral Project had been completed
with samples being sent to external laboratories for independent
assay. As noted above, the RC extension drilling was designed to
identify new areas of mineralisation stepping out from the existing
defined JORC (2012) resource area. A Phase II diamond infill
drilling programme subsequently commenced targeting key areas
situated within the existing resource area with the objective of
increasing and enhancing the Company's understanding and confidence
in the existing resource in areas that currently contain Inferred
mineralisation as defined under the JORC (2012) code.
On 31 October 2018, the Company announced the results of its
Phase I RC extension drilling campaign which had intersected lead,
zinc and silver mineralisation in each of the four holes drilled to
the east of the existing resource. Accordingly, structural
continuity was confirmed to the east of the existing deferred
resource area, with each RC drill hole encountering limestone/slate
contact containing mineralisation, and drill hole TOR-14, in
particular, assayed unexpectedly high-grade results near to
surface. The cost effective RC drilling campaign had targeted areas
all within 300 metres of surface.
On 31 October 2018, the Company also announced that it had
relinquished all rights to the permits the Group previously held in
respect of its Lago lead-zinc exploration project (Lago II 6.056
and Lago III 6.058) in the province of Galicia, Spain. Whilst the
Company continues to believe that the area is highly prospective
for lead-zinc, both the size and location of the Lago permit areas
did not justify and support incurring further maintenance and
exploration expenditure.
On 20 December 2018, the Company announced the results of the
first stage of the abovementioned Phase II diamond drilling
programme conducted at Toral. The diamond drilling provided the
following information for Europa Metals' geological team:
o confirmation of block model grade and thickness;
o progress with regard to drilling strategy to remove 'gaps'
within the known resource (all within 300m of topographic surface);
and
o further information on geotechnical characteristics and
structural controls.
Significant results from the diamond drilling included:
o Drill hole TOD-018 which returned 3.8m @ 5.87% Zn Equivalent
(Zn, Pb); and
o reportable copper mineralisation intercepted within 280 metres
of surface (drill hole TOD-020) - further investigation ongoing
following 0.68% Cu @ 3m, including 1m @ 1.34% Cu.
Scoping Study
On 10 December 2018, the Company announced the results of an
independent scoping study completed by AMS in accordance with JORC
(2012) for the Toral Project (the "Scoping Study" or "Study"). The
findings of the Study were positive with a recommendation that the
Toral Project should be progressed towards a feasibility study to
determine full economics, technical and environmental parameters
for an underground mining operation focused on near-term recovery
of the higher-grade mineralised zones.
The Scoping Study considered three conceptual underground mining
development and production scenarios. The conceptual scenario
selected (being Conceptual Scenario 2a) progresses decline access
ramp with a high grade focus; a proposed Mechanised Cut and Fill
(MCAF) mining method; entry to the mine via a principal decline
reaching various levels; and a series of internal mining inclined
ramps constructed to access levels.
Further key elements of the Scoping Study include:
o 4x4 metre mine standard development size
o Mining method and production schedule over estimated mine
life
o Efficient mining block sequence identified
o Identification of optimum plant locations (see Figure 1 in
full Annual Report and Accounts available at the link above)
o Key Recommendations: Infill drilling campaign to convert
resources to the Indicated category (JORC 2012), metallurgical and
geotechnical test work and progression to a full feasibility
study.
Economic Analysis
Europa Metals commissioned AMS to undertake a financial
modelling exercise for the Toral Project, based on a number of
different processing scenarios and mining methods. The results of
this exercise, as well as the overall positive outcomes of the
Scoping Study, support the commencement of a full feasibility
study. However, since 100% of the Mineral Resources at Toral are
currently in the Inferred resource category, in accordance with
Section 8.5 of ASX Guidance Note 31, the Company was not able to
publish a production target or forecast financial information in
December 2018.
Following the Company's removal from the official list of the
ASX Limited on 8 March 2019, the Company subsequently announced the
economics of the Scoping Study on 11 March 2019.
Estimated economic forecasts for the Toral Project, based on the
current level of work (+/-30%), for the Conceptual Scenario 2a
comprised:
o US$110 million net present value (NPV) using a discount rate
of 8%;
o 24.4% internal rate of return (IRR);
o Estimated US$33 million CAPEX for a proposed 450ktpa design
capacity plant, including associated auxiliary costs, with
infrastructure being situated near portal entrance on the north
side of the deposit.
o Estimated total CAPEX of US$110 million.
o US$25 per tonne indicative OPEX processing cost at steady
state conditions.
o US$36 per tonne indicative OPEX mining cost utilising
mechanised cut and fill.
o 15-year production plan, with significant potential for
extension.
Updated Mineral Resource
As part of the Scoping Study's licence tenure and permitting
investigative work and verification checks, an identified permit
location shift prompted the requirement to revise the previously
reported mineral resource estimate for the Toral Project within
Europa Metals' licence 15.199 and update the input mineral resource
block model used for the purposes of the Scoping Study.
The issue arose due to a legacy discrepancy between the
historical and current coordinate systems used in the mining and
permitting industry in Spain. The Mineral Resource estimate was
consequently updated due to a coordinate discrepancy and, as such,
the block model was also updated to reflect this change. The
reduction in the reported resource through the tenement shift in no
way affected the Scoping Study and economic potential of the
project.
The portion of the deposit affected by the boundary issue,
containing approximately 3 million tonnes of mineralisation, is in
the north-western extension of the deposit, a very narrow area not
currently considered to be of interest in terms of future mining.
The adjustment to the input block model in no way affects the
technical and economic findings of the Scoping Study at this
stage.
Under Spanish mining law the area concerned can be secured by
Europa Metals at the point the Company converts its exploration
licence to a mining licence, as it cannot be claimed by third
parties, except for the very far western extension, due to the
presence of a limestone quarry that operates at surface. It is
envisaged that the quarry will attract little interest due to the
elements on surface including a national road and a river;
accordingly, the quarry area can only be mined by underground
methods for high value minerals, if determined economically
viable.
Apart from the area under the limestone quarry, which will
require direct negotiation with its owner, the other areas are
subject to a defined procedure set out under Spanish mining law and
it is currently anticipated that such areas will be incorporated
into Europa Metals' Toral property upon the future grant of a
mining licence. The Board believes that there are no competitors in
relation to securing this further acreage.
The above mentioned reduction in the licence area led to a
temporary loss of approximately 3 million tonnes of resource as set
out in Table 1 below.
Table 1: Comparison Between the September 2018 and December 2018
Reduced Licence Area
4% Zn Eq Tonnes Density Zn Zn Eq Zn Pb Ag Contained Contained Ag Troy
(PbAg)% (Millions) g/cm(3) Eq (PbAg)% % % g/t Zn Tonnes Pb Tonnes Oz
(Pb)% (000s) (000s) (Millions)
September
2018
Resource 19 2.8 6.9 7.4 3.9 3.1 24 720 570 14
------------ --------- ------- --------- ---- ---- ----- ----------- ----------- -------------
December
2018
Resource 16 2.8 7 7.5 3.9 3.1 24 640 510 13
------------ --------- ------- --------- ---- ---- ----- ----------- ----------- -------------
On 13 May 2019, the Company announced that a diamond drilling
rig had been mobilised to site at Toral. The core objectives of the
drilling campaign were as follows:
1. Drill into the high grade core of the Toral Project, as
defined within the existing inferred JORC (2012) resource;
2. Target high grade areas within the defined resource to
further the Company's understanding of the Toral Project, with the
aim of increasing confidence in the resource estimate and attain
the indicated resource category; and
3. Obtain a significant sample for metallurgical testwork by
independent consultants to determine the potential Zn, Pb and Ag
concentrate composition from Toral which will provide additional
data to assist process plant design and discussions with potential
offtake parties.
On 15 May 2019, the second stage of the Phase II diamond
drilling programme commenced at Toral, with the Company
subsequently announcing on 13 June 2019 that the first diamond
hole, TOD-021, had been terminated at a depth of 652.90 metres, as
a result of a substantial deviation in the trajectory of the hole
during drilling operations away from its designated target, being
the high-grade zone of the existing defined resource. The deviation
took the hole above its planned high-grade zone target such that it
was not suitable to be used to secure a metallurgical sample.
Financial Position
In carrying out its operations during the reporting period, the
Group has incurred a loss after income tax for the period from 1
July 2018 to 30 June 2019 of $2,392,170 (2018: loss of $1,883,446).
The Group had net assets of $2,707,503 (2018: $2,484,371) as set
out in the Statement of Financial Position.
Significant changes in the Group's state of affairs
There have been no significant changes in the state of affairs
of the consolidated entity to the date of this report that have not
otherwise been disclosed elsewhere in the Annual Report.
Significant events after the reporting date
There are subsequent events to report, as follows:
-- On 11 July 2019, the Company provided a drilling update in
respect of the three-hole programme that had commenced on 15 May
2019. The second hole, TOD-022, had been completed having reached a
depth of 761.3m, with core processed and sent to ALS Laboratories
for independent analysis.
-- On 9 August 2019, the Company announced that it had submitted
an initial document (the "ID") for formal review by all key
administration stakeholders, including the department of the
environment, Castilla y León region, Northwest Spain, and private
stakeholders consulted by such administration, in connection with
the process for obtaining an exploitation license for Toral.
-- On 15 August 2019, the Company announced the completion of
the third hole, TOD-023, having reached a depth of 713m. Commenced
on 8 July 2019, TOD-023 had encountered a single significant
intersection of 12 metres (down hole width) of visible
mineralisation and two additional sub-ordinate hanging wall zones
of mineralisation.
-- On 2 September 2019, the Company announced that it had
completed a 'daughter hole' (TOD-023D) with core samples collected
and sent to Wardell Armstrong LLP ("WA") to commence its
independent metallurgical testwork.
-- On 4 September 2019, the Company announced that it had
received notices of exercise in respect of certain pre-existing
warrants to subscribe for 212,000,000 new ordinary shares at a
price of 0.015p per share and 133,333,334 new ordinary shares at a
price of 0.025p per share. In aggregate, the exercise of these
warrants amounted to a cash subscription of approximately
GBP65,133.
-- On 13 September 2019, the Company announced that it had
received notices of exercise in respect of certain pre-existing
warrants to subscribe for 166,666,667 new ordinary shares at a
price of 0.025p per share. The exercise of these warrants amounted
to a cash subscription of approximately GBP41,666.
-- On 25 September 2019, the Company announced assay results for
the second stage of its Phase II diamond drilling programme at
Toral. Additional mineralisation had been identified in the hanging
wall zone (TOD-023D; distinct to the main metallurgical sample
zone), with its potential influence on the resource estimate being
assessed by Europa Metal's technical team. Copper traces identified
within mineralisation at 640m downhole and is also being assessed.
All of the assay results have been submitted to the Company's
independent consultants, AMS, to enable them to update the mineral
resource models and provide a JORC (2012) technical report which is
expected to be received in early Q4 2019. Metallurgical testing is
also underway by WA with completion targeted for Q4 2019.
-- On 30 September 2019, the Company announced that it had
raised, in aggregate, GBP1,000,000 (before expenses), through a
placing of, and subscription for, in aggregate, 4,000,000,000 new
ordinary shares of no par value each in the capital of the Company
("Ordinary Shares") at an issue price of 0.025 pence per share (the
"Issue Price") (the "Fundraising"). The Fundraising comprised a
placing of 3,400,000,000 new Ordinary Shares via the Company's
joint broker, Turner Pope, as agent of the Company, and a
subscription for a further 600,000,000 new Ordinary Shares at the
Issue Price, with certain existing and new investors, including
Brandon Hill Capital Limited ("Brandon Hill") and associated
individuals, investing in a principal capacity, for 600,000,000 new
Ordinary Shares (the "Subscription"), both at the Issue Price. In
addition, one warrant exercisable for a period of 2 years from
Admission at a subscription price of 0.0375 pence per Ordinary
Share will be issued to all participants in the Fundraising for
every two new Ordinary Shares subscribed (the "Fundraising
Warrants"). Accordingly, 2,000,000,000 Fundraising Warrants will be
issued pursuant to the Fundraising. Further, Turner Pope and
Brandon Hill will be issued with 204,000,000 warrants and
36,000,000 warrants respectively to subscribe for new Ordinary
Shares at the Issue Price, exercisable for a period of three years
from Admission.
No other matters or circumstances have arisen since the end of
the year, other than as noted above, that may significantly affect
the operations of the Company, the results of these operations, or
the state of affairs in future financial years.
Likely developments and expected results
The Group will continue to carry out its business plans, by:
-- Obtaining an updated independent JORC (2012) resource
estimate, targeting resources in the Indicated category, and a new
geological model for the Toral Project which will inform the next
phase of work, in combination with the forthcoming metallurgical
results, in order to move the project towards a potential mining
licence application and the development phase;
-- Progressing its stakeholder programme and other core work around mine development.
-- Seeking and evaluating further strategic acquisition
opportunities within the exploration and mining industry to
potentially enter into additional advanced projects that will add
value to the Group; and
-- Continuing to meet its statutory commitments relating to its
exploration tenement and carrying out work programmes in accordance
with its stated strategy, whilst carefully conserving the Group's
cash reserves in order to be able to take advantage of any
potential value adding opportunities.
There can be no guarantee either that further exploration of the
Group's existing project will result in exploration or development
success or that any potential additional strategic acquisitions
considered by the Directors to be likely to add value to the Group
will become available to the Group.
Competent Person's Statement
The Scoping Study and JORC (2012) resource estimate for Toral
therein was prepared by Mr J.N. Hogg, MSc. MAIG Principal Geologist
for Addison Mining Services Limited ("AMS"), Mr J. Bennett BSc
(Hons). ARSM, FIMMM CEng Associate Principal Mining Engineer for
AMS, Dr N. Holloway, CEng, FIMMM Associate Processing Engineer for
AMS, and Dr S. Struthers CEnv, FIMMM, Associate Environmental
Consultant for AMS together being independent Competent Persons
within the meaning of the JORC (2012) code and qualified persons
under the AIM Note for Mining and Oil & Gas Companies. The
Scoping Study was aided by Mr R. J. Siddle, MSc, MAIG Senior
Resource Geologist for AMS, under the guidance of the competent
persons. Mr Hogg, Mr Bennett, Mr Holloway and Ms Struthers have
reviewed and verified the technical information that forms the
basis of, and has been used in the preparation of, the Scoping
Study and these accounts, including all analytical data, assumed
and acquired technical and economic inputs, diamond drill hole
logs, QA/QC data, density measurements, and sampling, diamond
drilling and analytical techniques, and consent to the inclusion in
these accounts of the matters based on the information, in the form
and context in which it appears. Mr Hogg, Mr Bennett, Mr Holloway
and Ms Struthers have also reviewed and approved the technical
information in their capacities as qualified persons under the AIM
Rules for Companies.
Consolidated Statement of Profit and Loss and Other
Comprehensive Income
For the year ended 30 June 2019
2019 2018
Note $ $
---------------------------------------- ----- ------------ ------------
Revenue from continuing operations
Revenue 3(a) 42 9
Other income 3(b) 7,212 71,310
Administration expenses 3(c) (974,577) (1,296,518)
Occupancy expenses (32,489) (27,655)
Exploration expenditure (1,390,379) (413,393)
Foreign exchange (loss)/ gain (1,979) 121,513
Share based payments 16 - (338,713)
Loss before taxation (2,392,170) (1,883,446)
Income tax benefit / (expense) 5 - -
------------ ------------
Loss after income tax for the
year from continuing operations (2,392,170) (1,883,446)
Net loss for the year (2,392,170) (1,883,446)
Other comprehensive income
Items that may be reclassified
subsequently to profit or loss
Net exchange gain on translation
of foreign operation 62,293 230,474
Other comprehensive income for
the year, net of tax 62,293 230,474
------------ ------------
Total comprehensive loss for the
year (2,329,877) (1,652,972)
============ ============
Net loss for the year attributable
to:
Equity holders of the Parent (2,329,877) (1,652,972)
------------ ------------
(2,329,877) (1,652,972)
============ ============
Total comprehensive loss for the
year attributable to:
Equity holders of the Parent (2,329,877) (1,652,972)
------------ ------------
(2,329,877) (1,652,972)
Cents per Cents per
Loss per share share share
Basic loss for the year attributable
to ordinary equity holders of
the Parent 7 (0.03) (0.06)
Diluted loss for the year attributable
to ordinary equity holders of
the Parent 7 (0.03) (0.06)
The above Consolidated Statement of Profit or Loss and Other
Comprehensive Income should be read in conjunction with the
accompanying notes in the full Report and Accounts.
Consolidated Statement of Financial Position
As at 30 June 2019
2019 2018
Note $ $
------------- -------------
Assets
Current assets
Cash and short term deposits 8 1,052,411 1,272,327
Trade and other receivables 9 291,201 77,510
Total current assets 1,343,612 1,349,837
------------- -------------
Non-current assets
Plant and equipment 31,657 20,192
Capitalised exploration expenditure 10 1,423,943 1,344,013
Total non-current assets 1,455,600 1,364,205
------------- -------------
Total assets 2,799,212 2,714,042
------------- -------------
Liabilities and equity
Current liabilities
Trade and other payables 11 91,709 229,671
Total current liabilities 91,709 229,671
------------- -------------
Total liabilities 91,709 229,671
------------- -------------
Net assets 2,707,503 2,484,371
------------- -------------
Equity
Contributed equity 12 40,572,924 38,079,499
Accumulated losses 15 (40,759,280) (38,367,110)
Reserves 14 2,893,859 2,771,982
Total equity 2,707,503 2,484,371
------------- -------------
This Consolidated Statement of Financial Position is to be read
in conjunction with the accompanying notes in the full Report and
Accounts.
Consolidated Statement of Cash Flows
For the year ended 30 June 2019
2019 2018
Note $ $
------------ ------------
Cash flows used in operating activities
Interest received 1,709 9
Exploration and evaluation expenditure (1,387,317) (404,017)
Payments to suppliers and employees (1,339,040) (1,031,775)
Net cash flows used in operating
activities 19 (2,724,648) (1,435,783)
------------ ------------
Cash flows used in investing activities
Payments for plant and equipment - (22,008)
Net cash flows used in investing
activities - (22,008)
------------ ------------
Cash flows from financing activities
Proceeds from issue of shares 2,684,170 2,294,676
Transaction costs on issue of shares (184,832) (135,819)
Net cash flows from financing activities 2,499,338 2,158,857
------------ ------------
Net (decrease)/ increase in cash
and cash equivalents held (225,310) 701,066
Net foreign exchange difference 5,394 67,370
Cash and cash equivalents at 1 July 1,272,327 503,891
Cash and cash equivalents at 30
June 8 1,052,411 1,272,327
------------ ------------
The above Consolidated Statement of Cash Flows should be read in
conjunction with the accompanying notes in the full Report and
Accounts which can be accessed via the following link:
http://www.europametals.com/site/news-announcements/annual-reports-archive
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.
END
FR CKDDDPBDKAKK
(END) Dow Jones Newswires
October 01, 2019 02:00 ET (06:00 GMT)
Europa Metals (LSE:EUZ)
Historical Stock Chart
From Apr 2024 to May 2024
Europa Metals (LSE:EUZ)
Historical Stock Chart
From May 2023 to May 2024