TIDMGUN
RNS Number : 5575I
Gunsynd PLC
19 April 2022
Gunsynd plc
("Gunsynd", or "the Company")
Interim Results for the six months ended 31 January 2022
Chairman's Statement
I am pleased to report the interim results for the six months
ended 31 January 2022.
Review of Investments
Low 6 Limited ("Low6")
Low6 completed US$5 million financing during January and
February 2022 supported by existing shareholders, together with new
sophisticated North American investors. As announced on 2 February
2022, Low6 entered into a binding letter of agreement with 1319735
B.C. Ltd. ("735"), a British Columbian corporation with a view to
undertaking a transaction that would result in a reverse takeover
of 735 by Low6 while at the same time pursuing a listing of the
combined entity on the TSX Venture Exchange.
Gunsynd holds 6,667 shares (for approximately GBP200,000)
together with a GBP65,000 convertible loan note.
The key growth drivers for new business in the coming years is
Low6's iGaming white label technology platform and this has already
helped Low6 achieve a major new business milestone. Low6 has won a
seven-figure contract to become the official supplier of "free to
play" games for an iGaming provider for the next two years, with an
option to extend for a third.
Rincon Resources Pty Ltd ("Rincon")
Gunsynd holds 8.9 million shares representing approximately 17%
of Rincon's issued share capital.
Rincon is a Western Australian ("WA") focussed gold and base
metals exploration company quoted on the ASX. It holds the rights
to three highly prospective gold and copper projects in WA, with a
main focus on the South Telfer Project, covering 50,000-hectares in
Paterson province.
During the period, the 5,000m Phase 2 reverse circulation ("RC")
and diamond drilling ("DD") programme at Hasties has recommenced.
DD drilling is set to test the 'Hasties Deeps' target area, 300m
below surface. The Phase 2 drilling programme initially commenced
in December 2021, with 7 RC holes completed for 1,476m.
Approximately 3,000m remains to be drilled, including up to 8 RC
and 2 DD holes.
Eagle Mountain Mining Limited ("Eagle Mountain")
Gunsynd holds 2.5 million shares in Eagle Mountain representing
approximately 1% of its issued share capital.
Eagle Mountain Mining Limited (ASX:EM2), is a copper focused
exploration and development company with a key objective of
becoming a low emission producer at its high-grade Oracle Ridge
project in Arizona, USA, to supply the rapidly growing green energy
market.
During the period, the Eagle Mountain updated its JORC Mineral
Resource Estimate ("MRE") for the Oracle Ridge Copper Project.
Using a 1.0% Cu cut-off grade, the company delivered an updated
figure of 17.0 Mt grading 1.48% Cu, 15.09g/t Ag and 0.17g/t Au for
251,000t of contained copper, 8.2Moz of silver and 93Koz of gold.
Compared to the previous MRE, contained copper increased by 36%
with a 39% increase in tonnes. Furthermore, since the MRE cut-off
date, a further 60 holes have been completed that were not included
in the resource.
Eagle Mountain continues to be well funded following completion
of a AUD$16m equity financing in early April 2022.
Rogue Baron Limited ("Rogue Baron")
Rogue Baron PLC (AQSE: SHNJ) is a leading company in the premium
spirit sector which listed on the Access segment of the AQSE Growth
Market on 12 March 2021. Gunsynd currently holds 21,543,563
ordinary shares in Rogue Baron, representing approximately 24% of
its issued share capital. Gunsynd also retains a balance of
GBP111,464 of Convertible Loan Notes consisting of accrued
interest.
Rogue Baron's flagship Shinju Whisky won two medals in October
2021 including a double gold with a perfect score of 100 when voted
best whisky at the 2021 Sante' International Spirit Competition.
During the period Rogue Baron closed down the smaller of its two
Washington DC bars to concentrate on the new and much larger venue
(De Rhum Spot). In November Shinju won another gold medal, this
time at the prestigious John Barleycorn awards.
In April 2022, Rogue Baron announced it had secured new
distribution deals in both the UK and Spain for Shinju.
Charger Metals Limited ("Charger")
Gunsynd currently holds 3,000,000 shares in Charger representing
approximately 6% of Charger's issued share capital, of which
1,200,000 shares are subject to an escrow period of 24 months
following its IPO on 7 July 2021.
Charger is a Western Australian ("WA") focussed base metals
(Ni,Cu,Co-PGE) and lithium exploration company which currently
holds three highly prospective projects in WA and the Northern
Territory ("NT") in Australia. Charger has an 85% interest in the
Coates North Project and 70% interest in the adjacent Coates
Ni-Cu-Co-PGE Project (WA), 70% interest in the Lake Johnson Lithium
and Gold Project (WA) and 70% interest in the Bynoe Lithium and
Gold Project (NT).
In March 2022, Charger announced its drilling schedule for the
Coates North Project and the Coates Ni-Cu-Co-Au-PGE Project
(together "Coates Project"), located 65km northeast of Perth,
Western Australia. The Coates Project contains a mafic intrusive
complex within the Jimperding Metamorphic Belt, which also hosts
the 17Moz PdEq Julimar - Gonneville nickel-copper-PGE Project owned
by Chalice Mining Ltd (ASX: CHN) and located 28km NW of the Coates
Project. Charger announced in April 2022 that it expects the maiden
drill programme to commence shortly at the Coates Project, with
five diamond core drill holes planned to test conductor targets for
economic mineralisation.
First Tin Limited ("First Tin") Formerly Anglo Saxony Mining
Limited ("ASM")
In March 2021, Gunsynd invested GBP125,000 in ASM, a now public
tin development and exploration company, as part of a wider GBP6m
funding round. In April 2022, Gunsynd invested a further GBP75,000
in the IPO of First Tin which was part of a GBP20,000,000 IPO
fundraise.
First Tin, a tin development company with advanced, low capex
projects in Germany and Australia, commenced trading of its
ordinary shares to trading on the Main Market of the London Stock
Exchange on 8 April 2022, with the TIDM 1SN.
First Tin plans to establish sustainable tin production and
processing from the Tellerhäuser Mine in Saxony, Germany. The
Tellerhäuser Mine has a 50-year mining licence granted in 2020 with
final permitting well advanced.
Pacific Nickel Limited ("Pacific Nickel")
During the period Pacific Nickel made good progress on its two
tenements in the Solomon Islands. In October 2021 it announced an
initial JORC resources estimate for its Jejevo licence. In
September it commenced stage two infill drilling at its Kolosori
tenement. In October 2021 it announced that 90 infill holes had
been drilled as part of the second stage 151-hole drill programme
designed to increase the confidence of the existing mineral
resource estimate of 5.89Mt at 1.55% Ni at 1.2% Ni cut off and that
discussions with potential Direct Ship Ore ("DSO") off-take
partners had commenced.
Pacific Nickel successfully raised AUD$5.25m in October 2021 to
advance both its Solomon Islands projects. In November 2021, it
announced both assay results from 27 drill holes at Kolosori and an
executive summary of a scoping study for its Kolosori DSO project.
In December 2021, Pacific Nickel announced that it had initiated an
early works programme. This programme was successfully completed in
March 2022. Finally in April 2022, Pacific Nickel advised it had
received a number of proposals with respect to offtake agreements
for its Kolosori project and that its mining lease application was
under consideration by the Solomon Islands government.
Oscillate plc ("Oscillate")
Oscillate is an investment company listed on the AQSE Growth
Market Exchange with the ticker, AQSE: MUSH. In April 2021, Gunsynd
invested GBP200,000 into Oscillate being 10 million shares at 2p
representing circa 4.5% of Oscillate. Other than a change at board
level, very little has happened since the year end.
Oyster Oil and Gas Limited ("Oyster")
Gunsynd has a holding valued at GBP130k, and there has been no
material change since year end. The rising oil price gives the
Company confidence of restoring value. Gunsynd will update the
market as and when material developments occur.
Overview
All of our investments are minority investments. Whilst we may
offer advice to management of investee companies in this regard,
they can, and sometimes do, ignore such advice. Similarly, private
companies don't have the disclosure requirements of public
companies and are under no obligation to keep us regularly updated.
It should be noted that the Company does not operate its investment
projects/companies on a day-to-day basis and whilst the Board looks
to structure investments in a format where Gunsynd can obtain a
high level of oversight (including at board level) and use legal
agreements to provide control mechanisms to protect the Company's
investments, there is a risk that the operator does not meet
deadlines or budgets, fails to pursue the appropriate strategy,
does not adhere to the legal agreements in place or does not
provide accurate or sufficient information to Gunsynd. Decisions
are ultimately made by investee companies and not by Gunsynd.
The level of administrative costs in the year can fluctuate
significantly depending on the level of costs in the Company and
can fluctuate significantly depending on the level of activity,
both with regard to the due diligence work carried out on
investments and disposals, and in managing pr oject
investments.
Finance Review
The Company's loss for the period was GBP310,000 (31 January
2021: GBP1,032,000 profit). The realised and unrealised market
valuation on financial investments for the period was a loss of
GBP56,000 (31 January 2021: GBP1,280,000 gain).
The Company had net assets at 31 January 2022 of GBP5,993,000
(31 January 2021: GBP4,848,000) including cash balances of
GBP1,082,000 (31 January 2021: GBP1,000,000).
Outlook
We previously stated "Debate lingers over whether the effects
are a temporary hiccup or the harbinger of structural changes. We
are far from convinced that the current inflation level is just a
blip, hence our positioning towards gold and copper." We stand by
that. The policy response by politicians the world over to Covid
has now clearly been shown to have been vastly overdone. With
governments lacking the courage to curtail spending and with
central banks very aware that sustained interest rate increases may
well cause a recession and possibly even a sovereign debt crisis,
we believe that on the balance of probabilities the base case is
for inflation to remain higher than in recent years and commodity
prices to remain elevated for at least the medium term if not
longer. Whilst at the junior resource company level in the UK there
is clearly a disconnect between commodity and share prices, history
tells us that at some stage reversion to mean will occur i.e.
either share prices go up or commodity prices will fall. We believe
the former is more likely than the latter.
As a well known investor once said "Price is what you pay, and
value is what you get".
The Board continues to look at investments in line with its
investment policy as highlighted on its website. Such investment(s)
may or may not lead to a reverse takeover.
The Board would like to take this opportunity to thank
shareholders for their continued support.
Hamish Harris
Chairman
This announcement contains inside information for the purposes
of the UK Market Abuse Regulation and the Directors of the Company
are responsible for the release of this announcement.
For further information, please contact:
Gunsynd plc:
Hamish Harris / Peter Ruse +44 (0) 78 7958 4153
Cairn Financial Advisers LLP
James Caithie / Liam Murray / James Western +44 (0) 20 7213 0880
Peterhouse Capital Limited
Lucy Williams +44 (0) 20 7469 0936
The interim results will be available electronically on the
Company's website: www.gunsynd.com .
Gunsynd plc
Interim statement of comprehensive income - unaudited
For the six months ended 31 January 2022
Unaudited Unaudited Audited
Six months Six months Year
ended ended ended
31 January 31 January 31 July
2022 2021 2021
GBP'000 GBP'000 GBP'000
Unrealised (loss)/gain on financial
investments (170) 1,166 2,371
Realised gain on financial investments 114 114 236
------------ ------------ ---------
(56) 1,280 2,607
Administrative and other costs (254) (252) (523)
Impairment of financial investments - - (130)
Write down of convertible loan
notes - - (2)
Share based payment charge - (25) (24)
Other income - - 26
Finance income - 29 58
(Loss)/profit before tax (310) 1,032 2,012
Taxation
------------ ------------ ---------
(Loss)/profit for the period (310) 1,032 2,012
------------ ------------ ---------
(Loss)/profit for the period and
total comprehensive (loss)/profit
attributable to equity shareholders (310) 1,032 2,012
------------ ------------ ---------
Other comprehensive (expenditure)/income - - -
for the period net of tax
Total comprehensive (expenditure)/income
for the period (310) 1,032 2,012
------------ ------------ ---------
(Loss)/ earnings per ordinary
share
Basic (0.069) 0.341 0.558
Diluted (0.069) 0.256 0.428
Gunsynd plc
Interim statement of financial position - unaudited
As at 31 January 2022
Unaudited Unaudited Audited
At 31 January At 31 January At 31 July
2022 2021 2021
GBP'000 GBP'000 GBP'000
ASSETS
Non-current assets
Financial investments 4,817 3,704 5,124
Trade and other receivables - 49 -
--------------- --------------- ------------
Total non-current assets 4,817 3,753 5,124
--------------- --------------- ------------
Current assets
Trade and other receivables 156 185 174
Cash and cash equivalents 1,082 1,000 1,071
--------------- --------------- ------------
Total current assets 1,238 1,185 1,245
Total assets 6,055 4,938 6,369
--------------- --------------- ------------
LIABILITIES
Current liabilities
Trade and other payables (62) (90) (66)
--------------- --------------- ------------
Total current liabilities (62) (90) (66)
--------------- --------------- ------------
Total liabilities (62) (90) (66)
--------------- --------------- ------------
Net assets 5,993 4,848 6,303
--------------- --------------- ------------
EQUITY
Equity attributable to equity
holders of the company
Ordinary share capital 382 332 382
Deferred share capital 2,299 2,299 2,299
Share premium reserve 13,459 13,033 13,459
Share-based payments reserve 131 216 131
Retained earnings (10,278) (11,032) (9,968)
--------------- --------------- ------------
Total equity 5,993 4,848 6,303
--------------- --------------- ------------
Gunsynd plc
Interim statement of changes in equity - unaudited
For the six months ended 31 January 2022
Ordinary Deferred Share Share Retained Total
Share share Premium Based earnings
Capital capital Payment
Reserve
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Unaudited (restated)
--------- --------- --------- --------- ---------- --------
At 31 July 2020 216 2,299 11,828 192 (12,065) 2,470
--------- --------- --------- --------- ---------- --------
Profit for the six month
period ended 31 January
2021 - - - - 1,032 1,032
--------- --------- --------- --------- ---------- --------
Total comprehensive income
for the period - - - - 1,032 1,032
Issue of share capital 116 - 1,261 - - 1,377
Share issue costs - - (56) - - (56)
Share options issued - - - 25 - 25
Share options lapsed - - - (1) 1 -
At 31 January 2021 332 2,299 13,033 216 (11,032) 4,848
--------- --------- --------- --------- ---------- --------
Audited
At 31 July 2020 216 2,299 11,828 192 (12,065) 2,470
--------- --------- --------- --------- ---------- --------
Profit for the year - - - - 2,012 2,012
--------- --------- --------- --------- ---------- --------
Total comprehensive income
for the year - - - - 2,012 2,012
Transactions with owners:
Issue of share capital 166 - 1,690 - - 1,856
Share issue costs - - (59) - - (59)
Share options issued - - - 24 - 24
Share options lapsed - - - (84) 84 -
Transfer within Equity - - - (1) 1 -
At 31 July 2021 382 2,299 13,459 131 (9,968) 6,303
--------- --------- --------- --------- ---------- --------
Unaudited
--------- --------- --------- --------- ---------- --------
At 31 July 2021 382 2,299 13,459 131 (9,968) 6,303
--------- --------- --------- --------- ---------- --------
Loss for the six month
period ended 31 January
2022 - - - - (310) (310)
--------- --------- --------- --------- ---------- --------
Total comprehensive expenditure
for the period - - - - (310) (310)
At 31 January 2022 382 2,299 13,459 131 (10,278) 5,993
--------- --------- --------- --------- ---------- --------
Gunsynd plc
Interim statement of cash flows - unaudited
For the six months ended 31 January 2022
Unaudited Unaudited Audited
Six months ended Six months ended Year
31 January 2022 31 January 2021 ended
31 July
2021
GBP'000 GBP'000 GBP'000
------------------ ------------------ ---------
Cash flows from operating activities
(Loss)/profit after tax (310) 1,032 2,012
Finance income net of finance costs - (29) (58)
Unrealised (gain)/loss on revaluation of financial investments 170 (1,166) (2,371)
Realised (gain)/loss on sale of financial investments (114) (114) (236)
Share based payments - 25 24
Impairment provision - - 130
Write down of convertible loan notes - - 2
Foreign exchange movements - - 3
Operating cash flow before changes in working capital (254) (252) (519)
Movement in trade and other receivables 18 1 7
Movement in trade and other payables (4) (8) (32)
Cash flow from operations (240) (259) (519)
Tax received - - -
------------------ ------------------ ---------
Net cash flows from operating activities (240) (259) (519)
Cash flow from investing activities
Payments for financial investments (44) (1,396) (2,143)
Disposal proceeds from sale of financial investments 295 ` 1,042
Repayment of loans to investee company - - 62
Unsecured loans to investee company - (25) (6)
Net cash flow from investing activities 251 (900) (1,045)
Cash flows from financing activities
Proceeds on issuing of ordinary shares - 1,377 1,856
Cost of issue of ordinary shares - (56) (59)
------------------ ------------------ ---------
Net cash flow from financing activities - 1,321 1,797
Net increase/(decrease) in cash and cash equivalents 11 162 233
Cash and cash equivalents at start of period 1,071 838 838
Cash and cash equivalents at end of period 1,082 1,000 1,071
------------------ ------------------ ---------
Notes to the interim report
For the six months ended 31 January 2022
1 Basis of preparation
As permitted IAS 34, 'Interim Financial Reporting' has not been
applied to these half-yearly results. The financial information of
the Company for the six months ended 31 January 2022 have been
prepared in accordance with the recognition and measurement
principles of International Financial Reporting Standards,
International Accounting Standards and Interpretations
(collectively "IFRS") issued by the International Accounting
Standards Board ("IASB") as adopted by the European Union ("adopted
IFRS") and are in accordance with IFRS as issued by the IASB. The
condensed interim financial information has been prepared using the
accounting policies which will be applied in the Company's
statutory financial statements for the year ending 31 July
2021.
The financial information shown in this publication is unaudited
and does not constitute statutory accounts as defined in Section
434 of the Companies Act 2006. The comparative figures for the
financial year ended 31 July 2021 have been derived from the
statutory accounts for 2021. The statutory accounts have been
delivered to the Registrar of Companies. The auditors have reported
on those accounts; their report was unqualified and did not contain
statements under the section 498(2) or 498(3) of the Companies Act
2006.
2 Earnings per share
The calculation of the loss per share is based on the loss
attributable to ordinary shareholders divided by the weighted
average number of shares in issue during the period.
Unaudited Unaudited Audited
Six months Six months Year
ended ended ended
31 January 31 January 31 July
2022 2021 2021
GBP'000 GBP'000 GBP'000
(Loss)/profit on ordinary activities
after tax (310) 1,032 2,012
Weighted average number of ordinary
shares for the purposes of basic
(loss)/earnings per share (millions) 449.80 302.58 362.57
Weighted average number of ordinary
shares for the purposes of diluted
(loss)/earnings per share (millions) 543.76 403.95 470.73
Basic (loss)/earnings per share
(expressed in pence) (0.069) 0.341 0.558
Diluted (loss)/earnings per share
(expressed in pence) (0.069) 0.256 0.428
However, due to losses incurred in the half year there is no
dilutive effect from the potential exercise of the share options in
existence.
3 Events after the end of the reporting period
4. Financial Information
The Board of Directors approved this interim report on 14 April
2022.
A copy of this report can be obtained from our website at
www.gunsynd.com
Forward Looking Statements
This announcement contains forward-looking statements relating
to expected or anticipated future events and anticipated results
that are forward-looking in nature and, as a result, are subject to
certain risks and uncertainties, such as general economic, market
and business conditions, competition for qualified staff, the
regulatory process and actions, technical issues, new legislation,
uncertainties resulting from potential delays or changes in plans,
uncertainties resulting from working in a new political
jurisdiction, uncertainties regarding the results of exploration,
uncertainties regarding the timing and granting of prospecting
rights, uncertainties regarding the Company's ability to execute
and implement future plans, and the occurrence of unexpected
events. Actual results achieved may vary from the information
provided herein as a result of numerous known and unknown risks and
uncertainties and other factors.
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END
IR FZGMDKLLGZZG
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