TIDMTHR
RNS Number : 0625G
Thor Mining PLC
13 March 2020
Friday , 13 March 2020
THOR MINING PLC
Thor Mining PLC ("Thor" or the "Company")
Half Year Report
The Directors of Thor Mining PLC (AIM, ASX: THR) are pleased to
announce the Company's results for the six months ended 31 December
2019.
The Company's Half Year Report was also today lodged with the
Australian Stock Exchange ("ASX") as required under the listing
rules of the ASX. A copy of the Half Year Report will shortly be
available on the Company's website www.thormining.com
Enquiries:
Mick Billing +61 (8) 7324 1935 Thor Mining PLC Executive Chairman
Ray Ridge +61 (8) 7324 1935 Thor Mining PLC CFO/Company
Secretary
Colin Aaronson/ +44 (0) 207 383 Grant Thornton UK Nominated Adviser
Richard Tonthat/ 5100 LLP
Ben Roberts
Nick Emerson +44 (0) 1483 413 SI Capital Ltd Joint Broker
500
Claire Louise +44 (0) 203 764 Hybridan LLP Joint Broker
Noyce / 2341
John Beresford-Peirse
Updates on the Company's activities are regularly posted on
Thor's website www.thormining.com, which includes a facility to
register to receive these updates by email, and on the Company's
twitter page @ThorMining.
Ab o u t T hor M i n i ng PLC
Thor Mining P LC (AI M, A S X: THR) is a r esources comp any
quoted on the AIM M a rket of the London Stock Exchange and on ASX
in Austr alia.
Thor holds 1 0 0% of the ad v anced Molyhil t ungsten p r oject
in t he No rthe rn T e rr ito ry of Aust r alia, for w hich an
updated feasibility study in August 2018(1) suggest ed attr a ctive
retur ns.
Adjacent Molyhil, at Bonya, Thor holds a 40% interest in
deposits of tungsten, copper, and vanadium, including Inferred
Resource estimates for the White Violet and Samarkand tungsten
deposits and the Bonya copper deposit.(2)
Thor a lso holds 1 0 0% of t he Pilot Mountain tungst en p
roject in Nevada U SA which has a JORC 20 12 Indicated and Inferred
Res o u rces Estimate(3) on 2 of the 4 k nown deposits. The US
Department of the Interior has confirmed that tungsten, the primary
resource mineral at Pilot Mountain, has been included in the final
list of Critical Minerals 2018.
Thor holds a 25% interest in Aust r alian copper d evelopment
company Envi roCop p er Limited (with rights to increase its
interest to 30%). EnviroCopper Limited holds:
-- r ights to earn up to a 7 5% interest in the mineral rights
and claims over the resource(4) on the p o rtion of the historic
Kapunda copper mi ne in South Aust r alia recover able by way of in
situ recove ry; and
-- rights to earn up to a 75% interest in the Moonta Copper
project, also in South Australia, comprising the northern portion
of exploration licence EL5984 and includes a resource estimate (5)
for several deposits.
Thor also holds a production royalty entitleme nt from t he S p
ring Hill Gold project(6) of:
-- A$6 per ounce of gold produced from the Spring Hill tenements
where the gold produced is sold for up to A$1,500 per ounce;
and
-- A$14 per ounce of gold produced from the Spring Hill
tenements where the gold produced is sold for amounts over A$1,500
per ounce.
N ot e s
(1) Refer ASX and AIM an n o u ncements of 23 August 2 0 18
(2) Refer ASX and AIM announcements of 26 November 2018 and 29
January 2020
(3) Refer AIM ann o un cement of 13 December 2018 and ASX ann o
unce ment of 14 December 2018
(4) Refer AIM a nn o un c e m e nt of 10 F e b r u ary 2 0 18 a
nd ASX ann o uncement of 12 February 2 0 18
(5) Refer AIM and ASX a nn o un c e m e nts of 1 5 August 2019
(6) Refer AIM a nn o un c e m e nt of 26 F e b r u ary 2 0 16 a
nd ASX ann o uncement of 29 February 2 0 16
THOR MINING PLC
Half-Year Report for the six months ended 31 December 2019
HIGHLIGHTS
ISR Copper
A successful field pump test at the Kapunda copper project
provided further evidence for the potential for successful ISR
operation.
A maiden Mineral Resource Estimate (MRE) was reported on several
of the deposits at Moonta, based on substantial historical
drilling. This resulted in an Inferred Resource estimate of 66.1
million tonnes (MT) grading 0.17% copper (Cu), containing 114,000
tonnes of contained copper, at a cutoff grade of 0.05%Cu .
Molyhil Tungsten & Molybdenum
An upgrade to the Molyhil Mineral Resource Estimate, with
increases in contained WO by 1.5%, and contained Mo by 9.3%,
compared with the previous estimate, and included copper, which has
not been reported since 2006 . The revised MRE comprises Indicated
and Inferred Mineral Resources of 4.7 million tonnes at 0.28% WO
(Tungsten trioxide), 0.14% Mo (Molybdenum), 0.05% Cu (Copper), and
18.0% Fe (Iron) above a cut-off grade of 0.12% WO(3)
equivalent.
A successful joint venture drilling program at nearby Bonya
project culminating in maiden Mineral Resource Estimates for the
White Violet and Samarkand deposits which, with the small Bonya
copper resource, reinforces the significant potential to extend the
profitable life of the proposed Molyhil operation.
Gold and Other Commodities
Initial ground reconnaissance survey over Pilbara tenements
provided very encouraging gold, nickel & chromium results.
REVIEW OF OPERATIONS
Commodity Prices
Copper prices moved in a range between US$5,000/tonne and
US$6,400/tonne, with recent weakness potentially a response to
Coronavirus disruption.
Tungsten pricing fell by approximately 20% early in the half
year, then recovered, now sitting between US$240/mtu to US$245/mtu.
The Molyhil project remains very well positioned with expected
production costs of US$90/mtu, at the lower end of global
production costs. Molybdenum pricing has fallen recently, possibly
in response to Coronavirus disruption and sits in the US$9/lb to
US$10/lb range.
Insitu Recovery Copper Investment (South Australia)
Thor holds a 25% interest in Australian private company
EnviroCopper Limited (ECL) with rights to increase that interest to
30%. ECL are earning a 75% effective interest, in two stages,
rights over metals which may be recovered via in-situ recovery
("ISR") contained in the Kapunda deposit from Australian listed
company, Terramin Australia Limited ("Terramin" ASX: "TZN"), and up
to 75% of the Moonta copper project comprising the northern portion
of exploration licence EL5984 held by Andromeda Metals Limited
(ASX:ADN).
A full background on the ISR copper investment is available on
the Thor Mining website www.thormining.com/projects .
Kapunda Project
In July 2018, the Company advised that the Australian Government
Ministry for Science, Jobs and Innovation announced an offer to ECR
for research funding of A$2,851,303, over a 30 month period, for
the Kapunda In-Situ Copper and Gold Recovery Trial.
ECL have also demonstrated successful gold recovery from Kapunda
core, in addition to copper recovery, using a CSIRO developed
thiosulphate product, instead of, the more normal, cyanide.
During the period, field pump tests of the flow of fluids
through the deposit for successful ISR activities were conducted.
The program involved drilling three holes, in the southern portion
of the deposit, with tests to measure connectivity, porosity and
permeability then conducted. Interim results show good potential
connectivity, and good interim copper values via portable X-Ray
Fluorescence (XRF) determination, with (to be confirmed by
laboratory assay) values of:
-- KPFRT01 intersected 66 metres @ 0.27% Cu including 5m @ 0.72%
Cu and 11 metres @ 0.54% Cu (Pilot Hole);
-- KPFRT02 intersected from 8m 23m @ 0.49% Cu to end of hole
-- KPFRT03 intersected from 22m, 6m @ 0.47% Cu to end of hole.
The geochemical analysis results may vary from those obtained
from XRF, and these are expected shortly.
Table A: Kapunda Resource Summary 2018
(Announced 12 February 2018)
Resource Copper Metal
-----------------------------
Mineralisation Classification MT Grade % Contained Cu
--------------------- ------------------- -------- ----------- ----------------
Copper Oxide Inferred 30.3 0.24 73,000
Secondary copper
sulphide Inferred 17.1 0.27 46,000
--------------------- ------------------- -------- ----------- ----------------
Total 47.4 0.25 119,000
----------------------------------------- -------- ----------- ----------------
Notes:
-- EnviroCopper are earning a 75% interest in this resource, and
Thor have investment rights for up to 30% of EnviroCopper.
-- All figures are rounded to reflect appropriate levels of
confidence. Apparent differences may occur due to rounding.
-- Cutoff grade used of 0.05% Cu
-- The Company is not aware of any information or data which
would materially affect this previously announced resource
estimate, and all assumptions and technical parameters relevant to
the estimate remain unchanged.
Moonta Project
During the September quarter the Company advised that Enviro
Copper Limited, on behalf of Environmental Metals Recovery, had
completed a Mineral Resource Estimate (MRE) on several of the
deposits at Moonta, based on substantial historical drilling. This
resulted in an Inferred Resource estimate of 66.1 million tonnes
(MT) grading 0.17% copper (Cu), containing 114,000 tonnes of
contained copper, at a cutoff grade of 0.05%Cu.
Table B: Moonta Copper Mineral Resource Estimate
(Announced 15 August 2019)
Resource COG Deposit Volume Tonnes Cu (%) Cu (metal Au (g/t) Au (kOz)
Classification (Cu (Mm3) (Mt) Kt)
%)
INFERRED 0.05 Wombat 20.91 46.5 0.17 80
----- --------- --------- -------- -------- ---------- --------- ---------
Bruce 5.51 11.8 0.19 22
----- --------- --------- -------- -------- ---------- --------- ---------
Larwood 3.48 7.8 0.15 12 0.04 10
----- --------- --------- -------- -------- ---------- --------- ---------
Total 29.90 66.1 0.17 114
--------- -------- -------- ---------- --------- ---------
Notes:
-- EnviroCopper are earning a 75% interest in this resource, and
Thor have investment rights for up to 30% of EnviroCopper.
-- Figures are rounded to reflect appropriate levels of
confidence. Apparent differences may occur due to rounding.
-- Cut-off grade used of 0.05% Cu.
-- The Company is not aware of any information or data which
would materially affect this previously announced resource
estimate, and all assumptions and technical parameters relevant to
the estimate remain unchanged
Molyhil Tungsten/Molybdenum project (NT, Australia) (100%
Thor)
The Molyhil project is located 220 kilometres north-east of
Alice Springs (320km by road).
In August 2018, Thor announced an updated definitive feasibility
study DFS for its wholly-owned Molyhil tungsten project, with
robust outcomes.
A full background on the project is available on the Thor Mining
website www.thormining.com/projects .
During the period, the Company reported an updated Mineral
resource estimate for the Molyhil deposit comprising Indicated and
Inferred Mineral Resources of 4.7 million tonnes at 0.28% WO
(Tungsten trioxide), 0.14% Mo (Molybdenum), 0.05% Cu (Copper), and
18.0% Fe (Iron) above a cut-off grade of 0.12% WO(3)
equivalent.
Table C: Molyhil Summary JORC (2012) Mineral Resource
Estimate
(Announced 10 October 2019)
Classification '000 WO(3) Mo Cu Fe
Tonnes
--------
Grade Tonnes Grade Tonnes Grade Tonnes Grade
% % % %
---------------- -------- ----- ------ ----- ------- ----- ------ ------
Indicated 3,780 0.29 11,000 0.14 5,400 0.05 1,800 18.7
Inferred 930 0.25 2,300 0.15 1,400 0.04 300 15.2
-------- ----- ------ ----- ------- ----- ------ ------
Total 4,710 0.28 13,300 0.14 6,800 0.05 2,200 18.0
-------- ----- ------ ----- ------- ----- ------ ------
Notes:
-- Thor Mining PLC holds 100% equity interest in this project.
-- The Mineral Resource is reported at 0.12% WO3 equivalent
cut-off and above 200mRL only on a dry, in-situ basis
-- The Company is not aware of any information or data which
would materially affect the Mineral Resource, and all assumptions
and key technical parameters relevant to the previous estimate
remain unchanged.
Efforts to secure project finance to bring Molyhil into
production continue, with ongoing discussions with various
potential partners who have expressed interest, in either off-take,
joint venture or debt finance arrangements. It is hoped that, on
the back of improved tungsten prices, and the release of resource
estimates at the nearby Bonya deposits, a favourable arrangement
can be finalised in the near term. More recently interest has been
expressed by various Australian government agencies including
Export Finance Australia, Defence Export Facility, Critical
Minerals Facilitation Office and the North Australian
Infrastructure Facility.
Bonya tenement (Tungsten, Copper, Vanadium) (40% Thor)
During the period, a follow up RC drilling program targeting the
White Violet and Samarkand deposits was carried out successfully
intersecting high grade tungsten mineralisation along with some
very useful copper grades. The program was funded by the JV
participants in proportion to their respective equity.
This program generated additional supporting information, and
extension, to the results of the first drill Bonya drill program
(announced 24 June 2019) and allowed the preparation of a maiden
resource estimate for the White Violet and Samarkand deposits on 29
January 2020.
Table D: Bonya tenement (White Violet and Samarkand deposits) -
Tungsten Mineral Resources (Announced 29 January 2020)
Oxidation Tonnes WO(3) Cu
% Tonnes % Tonnes
White Violet Inferred Oxide 25,000 0.41 90 0.16 40
Fresh 470,000 0.21 980 0.06 260
Sub Total 495,000 0.22 1,070 0.06 300
Samarkand Inferred Oxide 25,000 0.11 30 0.07 20
Fresh 220,000 0.20 430 0.13 290
Sub Total 245,000 0.19 460 0.13 310
Combined Inferred Oxide 50,000 0.26 120 0.14 60
Fresh 690,000 0.21 1,410 0.08 550
Total 740,000 0.21 1,530 0.09 610
-------------------------- ----------- -------- ----- ------- ----- ------------
Notes:
-- 0.05% WO3 cut-off grade.
-- Totals may differ from the addition of columns due to rounding.
-- Thor Mining PLC holds 40% equity interest in this project.
-- The Company is not aware of any information or data which
would materially affect this previously announced resource
estimate, and all assumptions and technical parameters relevant to
the estimate remain unchanged.
Table E: Bonya tenement (Bonya Copper deposit) - Inferred
Resource Estimate
( Announced 26 November 2018)
BONYA COPPER Resource Copper
000t Grade Contained
% metal (t)
--------- ----- -----------
Inferred Oxidised 20 1.0 200
Fresh 210 2.0 4,400
---------------------- --------- ----- -----------
Sub-Total 230 2.0 4,600
---------------------- --------- ----- -----------
Notes:
-- 40% owned by Thor Mining Plc
-- Cutoff grade used of 0.2% Cu
-- The Company is not aware of any changes which could affect this resource estimate
Pilot Mountain Tungsten project (Nevada, USA) (100% Thor)
The Pilot Mountain project, acquired in 2014, is located
approximately 200 kilometres ("km") south of the city of Reno and
20km east of the town of Mina located on US Highway 95.
The project is comprised of four tungsten deposits: Desert
Scheelite, Gunmetal, Garnet and Good Hope. All are in close
proximity, approximately three km, of each other and have been
subjected to small-scale mining activities at various times during
the 20th century.
A full background on the project is available on the Thor Mining
website www.thormining.com/projects.
Table F: Pilot Mountain Resource Summary 2018
(Announced 13 December 2018)
Resource WO(3) Ag Cu Zn
MT Grade Contained Grade Contained Grade Contained Grade Contained
% metal g/t metal % metal % metal
(t) (t) (t) (t)
------------ ----------- ------ ----- ---------- ------ --------- ------ --------- ----- ---------
Garnet Indicated - -
------------
Inferred 1.83 0.36 6,590
------------------------ ------ ----- ---------- ------ --------- ------ --------- ----- ---------
Sub Total 1.83 0.36 6,590
------------------------ ------ ----- ---------- ------ --------- ------ --------- ----- ---------
Desert
Scheelite Indicated 9.01 0.26 23,400 20.73 187 0.15 13,200 0.41 37,100
------------
Inferred 1.69 0.25 4,300 12.24 21 0.16 2,800 0.19 3,200
------------------------ ------ ----- ---------- ------ --------- ------ --------- ----- ---------
Sub Total 10.70 0.26 27,700 19.38 207 0.15 16,000 0.38 40,300
------------------------ ------ ----- ---------- ------ --------- ------ --------- ----- ---------
Summary Indicated 9.01 0.26 23,400
------------
Inferred 3.53 0.31 10,890
------------------------ ------ ----- ---------- ------ --------- ------ --------- ----- ---------
Pilot Mountain
Total 12.53 0.27 34,290
------------------------- ------ ----- ---------- ----- ---------- ------ --------- ----------------
Notes:
-- 100% owned by Thor Mining PLC
-- All figures are rounded to reflect appropriate levels of
confidence. Apparent differences may occur due to rounding
-- Cut-off grade 1,500ppm WO
-- The Company is not aware of any information or data which
would materially affect this previously announced resource
estimate, and all assumptions and technical parameters relevant to
the estimate remain unchanged.
Gold and Other Commodities
During the period, a field reconnaissance program incorporating
soil and stream sediment sampling was conducted, on the Pilbara
Gold licences, with very positive outcomes announced on 16 January
2020.
The results showed mineralisation in 17 of the 44 sites sampled.
Of the mineralised samples, 15 contained gold, and two encountered
nickel and chromium. These results warrant more detailed follow up
work, which has been scheduled to be conducted following the end of
the annual monsoon season in the area.
Capital Raisings
During the period, the Company's cash balances were augmented
via the issue of 255,000,000 shares, raising GBP510,000 before
costs of the issue.
Board Changes
During the period Mark Potter joined the board as Non-Executive
Director, while Dave Thomas and Alastair Middleton completed their
terms as directors of the Board of Thor. The Board wish to thank
both Dave and Alastair for their contribution to the Company.
Comprehensive Income
The comprehensive income statement records a comprehensive loss
of GBP895,000 (2018: GBP455,000 loss) after taking into account
foreign currency translation losses of GBP416,000 (2018: GBP49,000
loss).
Approved for release by the Board
Mick Billing
Executive Chairman
13 March 2020
Competent Person's statements
The information in this report that relates to exploration
results, and exploration targets, is based on information compiled
by Richard Bradey, who is a Member of The Australasian Institute of
Mining and Metallurgy. Mr Bradey is an employee of Thor Mining PLC.
He has sufficient experience which is relevant to the style of
mineralisation and type of deposit under consideration and to the
activity which he is undertaking to qualify as a Competent Person
as defined in the 2012 Edition of the 'Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore
Reserves'. Richard Bradey consents to the inclusion in the report
of the matters based on his information in the form and context in
which it appears.
The Company confirms that it is not aware of any new information
or data that materially affects the information included in the
original market announcements and, in the case of estimates of
Mineral Resources or Ore Reserves, that all material assumptions
and technical parameters underpinning the estimates in the relevant
market announcement continue to apply and have not materially
changed. The company confirms that the form and context in which
the Competent Person's findings are presented have not been
materially modified from the original market announcement.
Condensed Consolidated Statement of Comprehensive Income
For the 6 months ended 31 December 2019
Note GBP'000 GBP'000 GBP'000
6 months ended 6 months ended Year
31 December 31 December ended
2019 2018 30 June
2019
Unaudited Unaudited Audited
Administrative expenses (66) (40) (91)
Corporate expenses (344) (335) (601)
Share-settled and share-based payments
expense (31) (22) (22)
Realised gain on financial assets (2) - (1)
Exploration expenses (5) (16) (21)
Write off/Impairment of exploration
assets 4 (1) - (28)
Operating Loss (449) (413) (764)
Interest received 1 5 12
Interest paid (2) - -
Loss on Revaluation of Asset (18) - -
Loss on Sale of Investments (28) - -
Sundry Income 17 2 17
Loss before Taxation (479) (406) (735)
Taxation - - -
-------------- -------------- --------
Loss for the period (479) (406) (735)
-------------- -------------- --------
Other comprehensive income:
Exchange differences on translating
foreign operations (416) (49) (100)
Other comprehensive income for the period,
net of income tax (416) (49) (100)
Total comprehensive income for the period (895) (455) (835)
============== ============== ========
Basic loss per share 2 (0.05)p (0.06)p (0.10)p
Condensed Consolidated Statement of Financial Position
For the 6 months ended 31 December 2019
Note GBP'000 GBP'000 GBP'000
31 December 31 December 30 June
2019 2018 2019
Unaudited Unaudited Audited
ASSETS
Non-current assets
Intangible assets - deferred
exploration costs 4 11,521 10,778 11,688
Investments at cost - 103 103
Loan receivable (Convertible
note) 374 167 332
Deposits to support performance
bonds 41 20 42
Right of use asset 3 54 - -
Plant and equipment 10 18 14
Total non-current assets 12,000 11,086 12,179
------------ ------------ --------
Current assets
Cash and cash equivalents 316 1,048 523
Trade receivables and other
assets 106 62 64
Assets held for sale 19 - -
Total current assets 441 1,110 587
------------ ------------ --------
Total assets 12,441 12,196 12,766
------------ ------------ --------
LIABILITIES
Current liabilities
Trade and other payables (236) (188) (245)
Provisions (53) (43) (45)
Non-interest bearing liabilities - - -
Lease liability (29) (5) -
------------ ------------ --------
Total current liabilities (318) (236) (290)
------------ ------------ --------
Lease liability (25) - -
------------ ------------ --------
Total non-current liabilities (25) - -
------------ ------------ --------
Total liabilities (343) (236) (290)
------------ ------------ --------
Net assets 12,098 11,960 12,476
============ ============ ========
Equity
Issued share capital 5 3,718 3,682 3,692
Share premium 21,927 20,631 21,449
Foreign exchange reserve 1,668 2,135 2,084
Merger reserve 405 405 405
Share based payments reserve 346 295 359
Retained losses (15,966) (15,188) (15,513)
------------ ------------ --------
Total equity 12,098 11,960 12,476
============ ============ ========
Condensed Consolidated Statement of Change in
Equity
For the 6 months ended 31 December
2019
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Issued Share Retained Foreign Merger Share Total
share premium losses Currency Reserve Based
capital Translation Payment
Reserve Reserve
Balance at 1 July
2018 3,675 19,693 (14,784) 2,184 405 297 11,470
Loss for the period - - (406) - - - (406)
Foreign currency
translation reserve - - - (49) - - (49)
Total comprehensive
loss for the period - - (406) (49) - - (455)
-------- -------- ------------ ----------- --------- --------- ---------
Transactions with owners in their capacity
as owners
Shares issued 7 942 - - - - 949
Cost of shares
issued - (4) - - - - (4)
Share options issued - - - - - - -
Share options
exercised - - 2 - - (2) -
-------- -------- ------------ ----------- --------- --------- ---------
At 31 December
2018 3,682 20,631 (15,188) 2,135 405 295 11,960
-------- -------- ------------ ----------- --------- --------- ---------
Balance at 1 July
2018 3,675 19,693 (14,784) 2,184 405 297 11,470
Loss for the period - - (735) - - - (735)
Foreign currency
translation reserve - - - (100) - - (100)
Total comprehensive
(loss) for the period - - (735) (100) - - (835)
-------- -------- ------------ ---------- ---------- --------- -------
Transactions with owners in their capacity
as owners
Shares issued 17 1,782 - - - - 1,799
Cost of shares issued - (26) - - - - (26)
Share options
exercised - - 6 - - (6) -
Share options issued - - - - 68 68
At 30 June 2019 3,692 21,449 (15,513) 2,084 405 359 12,476
-------- -------- ------------ ---------- ---------- --------- -------
Balance at 1 July
2019 3,692 21,449 (15,513) 2,084 405 359 12,476
Loss for the period - - (479) - - - (479)
Foreign currency
translation reserve - - - (416) - - (416)
Total comprehensive
loss for the period - - (479) (416) - - (895)
-------- -------- ------------ ----------- --------- --------- ---------
Transactions with owners in their capacity
as owners
Shares issued 26 521 - - - - 547
Cost of shares
issued - (43) - - - - (43)
Share options lapsed - - 26 - - (26) -
Share options issued - - - - - 13 13
-------- -------- ------------ ----------- --------- --------- ---------
At 31 December
2019 3,718 21,927 (15,966) 1,668 405 346 12,098
-------- -------- ------------ ----------- --------- --------- ---------
Condensed Consolidated Statement of Cash Flow
For the 6 months ended 31 December
2019
GBP'000 GBP'000 GBP'000
6 months ended 6 months ended Year
31 December 31 December ended
2019 2018 30 June
2019
Unaudited Unaudited Audited
Cash flows from operating activities
Operating Loss (449) (413) (764)
Sundry income 17 2 17
(Increase)/decrease in trade and other
receivables 24 3 (8)
Decrease in trade and other payables (13) (9) (12)
Increase/(decrease) in provisions 9 (6) (4)
Depreciation 19 4 8
Exploration expenditure write off (1) 28
Share settled expense & share-based
payments 31 22 22
Net cash outflow from operating activities (363) (397) (713)
Cash flows from investing activities
Interest received 1 9 17
Interest paid (2) - -
Expenditure on refundable performance
bonds (22)
Cash acquired in purchase of subsidiaries - - 41
Loan advanced (convertible note) (53) (56) (221)
Payments for exploration expenditure (349) (427) (876)
R&D Grants 119 - -
Proceeds from Sale of Investments 38 - -
Net cash outflow from investing activities (246) (474) (1,061)
Cash flows from financing activities
Lease liability repaid (14) (5) (10)
Net issue of ordinary share capital 432 561 949
--------
Net cash inflow from financing activities 418 556 939
Net decrease in cash and cash equivalents (191) (315) (835)
Non-cash exchange changes (16) (11) (16)
Cash and cash equivalents at beginning
of period 523 1,374 1,374
-------------- -------------- --------
Cash and cash equivalents at end of
period 316 1,048 523
-------------- -------------- --------
Notes to the Half-year Report
For the 6 months ending 31 December 2019
1. PRINCIPAL ACCOUNTING POLICIES
(a) Presentation of Half-year results
The half-year results have not been audited, but were the
subject of an independent review carried out by the Company's
auditors, Chapman Davis LLP. Their review confirmed that the
figures were prepared using applicable accounting policies and
practices consistent with those adopted in the 2019 annual report
and to be adopted in the 2020 annual report. The financial
information contained in this half-year report does not constitute
statutory accounts as defined by Section 435 of the Companies Act
2006.
The half-year report has been prepared under the historical cost
convention.
The Directors acknowledge their responsibility for the half-year
report and confirm that, to the best of their knowledge, the
interim consolidated financial statements for the six months ended
31 December 2019 have been prepared in accordance with
International Financial Reporting Standards, including IAS 34
"Interim Financial Statements", and complies with the requirements
for companies with securities admitted to trading on the AIM Market
of the London Stock Exchange. This half-year report does not
include all the notes of the type normally included in an annual
financial report. Accordingly, this report should be read in
conjunction with the annual report for the year ended 30 June
2019.
The Directors are of the opinion that on-going evaluations of
the Company's interests indicate that preparation of the accounts
on a going concern basis is appropriate.
(b) Basis of consolidation
The consolidated financial statements comprise the financial
statements of Thor Mining PLC and its controlled entities. The
financial statements of controlled entities are included in the
consolidated financial statements from the date control commences
until the date control ceases. All inter-company balances and
transactions have been eliminated in full.
The financial statements of subsidiaries are prepared for the
same reporting period as the parent Company, using consistent
accounting policies.
2. LOSS PER SHARE
No diluted loss per share is presented as the effect of exercise
of outstanding options is to decrease the loss per share.
GBP'000 GBP'000 GBP'000
6 months ended 6 months ended Year
31 December 31 December ended
2019 2018 30 June
2019
Unaudited Unaudited Audited
Loss for the period (479) (406) (735)
Weighted average number of 884,961,514 667,334,721 714,111,518
Ordinary shares in issue
Loss per share - basic (0.05)p (0.06)p (0.10)p
Notes to the Half-year Report
For the 6 months ending 31 December 2019
3. RIGHT OF USE ASSET
The Company's Right of use assets comprise leased office
space.
This lease has a remaining term of 28 months for the date of
initial application of IFRS 16 on 1 July 2019.
Options to extend or terminate
The Company's lease contains no option to extend.
Variable lease payments
The company does not have any variable lease payments.
GBP'000
31 December
2019
(i) IFRS 16 related amounts recognised Unaudited
in the Statement of Financial Position
Leased building 69
Less: accumulated depreciation (15)
------------
Right of use asset 54
------------
Movements in Carrying Amount
Opening balance -
Recognised on initial application of IFRS16
(previously classified as an operating lease) 69
Depreciation expense (15)
------------
54
------------
(ii) IFRS 16 related amounts recognised
in the Statement of Comprehensive
Income/(Loss)
Depreciation charge related to right
of use asset (15)
Interest expense on lease liabilities (1)
(iii) Total Half Year cash out flows
for leases (14)
4. DEFERRED EXPLORATION COSTS
GBP'000 GBP'000 GBP'000
31 December 31 December 30 June
2019 2018 2019
Cost Unaudited Unaudited Audited
At commencement 11,687 10,133 10,133
Net additions 236 376 879
Acquisition 301 776
Exchange gain/(loss) (401) (32) (72)
Write off exploration tenements for
year (1) - (28)
At period end 11,521 10,778 11,688
------------ ----------- -------
Notes to the Half-year Report
For the 6 months ending 31 December
2019
Impairment
At commencement - - -
Exchange loss - - -
Impairment for period - - -
At period end - - -
------------ ----------- -------
Net book value at period end 11,521 10,778 11,687
------------ ----------- -------
Having reviewed the deferred exploration and evaluation
expenditure at 31 December 2019, the directors are satisfied that
no write off or provision for impairment is required.
5. SHARE CAPITAL GBP'000 GBP'000 GBP'000
31 December 31 December 30 June 2019
2019 2018
Unaudited Unaudited Audited
Issued fully paid (Nominal Value)
982,870,766 'Deferred Shares' of
GBP0.0029 each 2,850 2,850 2,850
7,928,958,483 'A Deferred Shares'
of GBP0.000096 each 761 761 761
Ordinary shares of GBP0.0001 each 107 71 81
------------- ------------ ------------
3,718 3,682 3,692
============= ============ ============
Number Number Number
31 December 31 December 30 June 2019
2019 2018
Unaudited Unaudited Audited
Movement in share capital
Ordinary Shares of 0.01 pence
At commencement 816,959,363 648,573,546 648,573,546
Shares issued for cash 228,303,865 - 47,058,823
Warrants exercised - 52,699,789 52,699,789
Shares issued to service providers 31,383,635 1,100,000 1,100,000
Shares issued for acquisition - 14,527,205 67,527,205
------------- ------------ ------------
At period end 1,076,646,863 716,900,540 816,959,363
============= ============ ============
Notes to the Half-year Report
For the 6 months ending 31 December
2019
GBP'000 GBP'000 GBP'000
31 December 31 December 30 June 2019
2019 2018
Nominal Value Unaudited Unaudited Audited
At commencement 3,692 3,675 3,675
Issued for cash (including warrants
exercised) 23 5 10
Issued to service providers 3 - -
Issued for acquisition - 2 7
At period end 3,718 3,682 3,692
------------ ------------ ------------
6. TURNOVER AND SEGMENTAL ANALYSIS - GROUP
The Group has a number of exploration licenses, and mining
leases, in Australia and the US State of Nevada. All exploration
licences in Australia are managed as one portfolio. The decision to
allocate resources to individual Australian projects in that
portfolio is predominantly based on available cash reserves,
technical data and the expectations of future metal prices. The
Group acquired the exploration assets in the US State of Nevada on
27 October 2014. All of these US licenses are located in the one
geological region. Accordingly, the Group has identified its
operating segments to be Australia and the United States. This is
the basis on which internal reports are provided to the Directors
for assessing performance and determining the allocation of
resources within the Group.
GBP'000 GBP'000 GBP'000 GBP'000
Half Year ended 31/12/2019 Head office/ Australia United States Consolidated
Unallocated
Revenue
Interest & Sundry Income 18 - - 18
Total Segment Expenditure (158) (339) - (497)
------------ --------- ------------- ------------
Loss from Ordinary Activities
before Income Tax (140) (339) - (479)
Income Tax Benefit/(Expense) - - - -
------------ --------- ------------- ------------
Loss after Income Tax (140) (339) - (479)
------------ --------- ------------- ------------
As at 31/12/2019 Head office/ Australia United States Consolidated
Unallocated
Assets and Liabilities
Segment assets - 9,673 2,407 12,080
Corporate assets 361 - - 361
------------ --------- ------------- ------------
Total Assets 361 9,673 2,407 12,441
------------ --------- ------------- ------------
Segment liabilities - (329) - (329)
Corporate liabilities (14) - - (14)
------------ --------- ------------- ------------
Total Liabilities (14) (329) - (343)
Net Assets 347 9,344 2,407 12,098
------------ --------- ------------- ------------
Notes to the Half-year Report
For the 6 months ending 31 December 2019
6. TURNOVER AND SEGMENTAL ANALYSIS - GROUP (continued)
GBP'000 GBP'000 GBP'000 GBP'000
Half Year ended 31/12/2018 Head office/ Australia United States Consolidated
Unallocated
Revenue
Interest & Sundry Income 7 - - 7
Total Segment Revenue 7 - - 7
------------ ---------- ------------- ------------
Total Segment Expenditure (175) (238) - (413)
------------ ---------- ------------- ------------
Loss from Ordinary Activities
before Income Tax (168) (238) - (406)
Income Tax Benefit/(Expense) - - - -
------------ ---------- ------------- ------------
Loss after Income Tax (168) (238) - (406)
------------ ---------- ------------- ------------
As at 30/06/2019 Head office/ Australia United States Consolidated
Unallocated
Assets and Liabilities
Segment assets - 9,625 2,501 12,126
Corporate assets 640 - - 640
------------ ---------- ------------- ------------
Total Assets 640 9,625 2,501 12,766
------------ ---------- ------------- ------------
Segment liabilities - (278) - (278)
Corporate liabilities (12) - - (12)
------------ ---------- ------------- ------------
Total Liabilities (12) (278) - (290)
Net Assets 628 9,347 2,501 12,476
------------ ---------- ------------- ------------
7. POST BALANCE SHEET EVENTS
On 29 January 2020, Thor announced maiden mineral resource
estimates for the White Violet and Samarkand tungsten and copper
deposits at Bonya, adjacent to the Group's 100% owned Molyhil
tungsten and molybdenum project. The Bonya tenement is held jointly
between Thor 40% and Arafura Resources Limited (ASX: ARU) 60%. Thor
Mining is the joint venture operator. Highlights include:
-- White Violet deposit: Inferred resources of 495,000 tonnes,
grading 0.19% Tungsten Trioxide (WO(3) ) and 0.06% copper (Cu),
containing 1,090 tonnes of Wo(3) and 300 tonnes of Cu.
-- Samarkand deposit: Inferred resources of 245,000 tonnes,
grading 0.19% Tungsten Trioxide (WO(3) ) and 0.13% copper (Cu),
containing 465 tonnes of WO(3) and 320 tonnes of Cu.
-- Both deposits outcrop and remain open at depth, while the
Samarkand deposit in particular shows potential for strike
extension to the copper mineralisation.
-- Each deposit is considered amenable to open cut extraction
for significant components of the resource.
-- Both deposits are situated in close proximity to the Group's
100% owned Molyhil tungsten and molybdenum project.
Notes to the Half-year Report
For the 6 months ending 31 December 2019
On 11 February 2020, Thor announced the finalisation of the sale
of all shares it held in Hawkstone Mining Limited (ASX HWK) for
proceeds, net of costs, of approximately GBP55,000. Of the total
proceeds, GBP37,000 was realised prior to 31 December 2019 and
GBP18,000 was realised post 31 December 2019.
Other than the above matter, there were no material events
arising subsequent to 31 December 2019 to the date of this report
which may significantly affect the operations of the Group, the
results of those operations and the state of affairs of the Group
in the future.
8. GOING CONCERN BASIS OF ACCOUNTING
The financial report has been prepared on the going concern
basis of accounting.
The Group incurred a net loss after tax from continuing
operations of GBP479,000 for the half year ended 31 December 2019,
and net cash outflows of GBP609,000 from operating and investing
activities. The Group is reliant upon completion of asset sales or
a capital raising to fund continued operations and the provision of
working capital.
In this regard, the Company notes the sale of 5,982,765 shares
it held in Hawkstone Mining Limited (ASX: HWK) subsequent to 31
December 2019, for approximately GBP18,000 and has received
expressions of interest from a number of parties for the acquiring
the Company's entitlement to royalties from the Spring Hill gold
project in the Northern Territory of Australia. The Company is
progressing negotiations and will inform the market once a
transaction has been finalised.
If additional capital is not obtained, the going concern basis
of accounting may not be appropriate, with the result that the
Group may have to realise its assets and extinguish its
liabilities, other than in the ordinary course of business and at
amounts different from those stated in the financial report. No
allowance for such circumstances has been made in the financial
report.
DIRECTORS, SECRETARY AND ADVISERS
Directors Michael Robert Billing (Executive Chairman)
Richard Bradey (Executive Director)
Mark Potter (Non-executive Director) , appointed 27th August
2019
David Edward Thomas (Non-executive Director) , retired 29(th)
November 2019
Alastair Middleton (Non-executive Director) , retired 29(th)
November 2019
In UK In Australia
------------------------ ----------------------------
Registered Office Salisbury House 58 Galway Avenue
and Directors' business London Wall Marleston, South Australia
address London, EC2M 5PS Australia 5033
United Kingdom
Company Secretaries Stephen Frank Ronaldson Ray Ridge
Website www.thormining.com www.thormining.com
Nominated Adviser to Grant Thornton UK LLP
the Company 30 Finsbury Square
London EC2A 1AG
United Kingdom
Auditors to the Company Chapman Davis LLP
2 Chapel Court
London SE1 1HH
United Kingdom
Solicitors to the Druces LLP
Company Salisbury House
London Wall
London, EC2M 5PS
United Kingdom
Registrars Computershare Investor Computershare Investor
Services Plc Services Pty Ltd
The Pavilions Level 5, 115 St Grenfell
Bridgewater Road St
Bristol BS99 6ZY Adelaide, South Australia
United Kingdom Australia 5000
INDEPENT REVIEW REPORT TO THOR MINING PLC
Introduction
We have been engaged by the Company to review the interim
consolidated financial statements for the six months ended 31
December 2019 comprising the Condensed Consolidated Statement of
Comprehensive Income, Condensed Consolidated Statement of Financial
Position, Condensed Consolidated Statement of Changes in Equity,
Condensed Consolidated Statement of Cash Flows, and related notes.
We have read the other information contained in the interim report
and considered whether it contains any apparent misstatements or
material inconsistencies with the information in the interim
financial statements.
This report is made solely to the Company in accordance with
guidance contained in ISRE 2410 (UK and Ireland) "Review of Interim
Financial Information Performed by the Independent Auditor of the
Entity" issued by the Auditing Practices Board. Our work has been
undertaken so that we might state to the company those matters we
are required to state in an independent review report and for no
other purpose. To the fullest extent permitted by law, we do not
accept or assume responsibility to anyone other than the Company,
for our work, for this report, or for the conclusions we have
formed.
Directors' Responsibilities
The half-yearly financial report is the responsibility of, and
has been approved by the Directors. The Directors are responsible
for preparing the half-yearly financial report in accordance with
the rules of the London Stock Exchange Plc for Companies trading
securities on the AIM Market. As disclosed in Note 1 the annual
financial statements of the group are prepared in accordance with
IFRSs as adopted by the European Union. The condensed set of
financial statements included in this half-yearly financial report
have been prepared in accordance with International Accounting
Standard 34 "Interim Financial Reporting" as adopted by the
European Union.
Our Responsibility
Our responsibility is to express to the Company a conclusion on
the half-yearly financial report based on our review.
Scope of Review
We conducted our review in accordance with International
Standard on Review Engagements (UK and Ireland) 2410, "Review of
Interim Financial Information Performed by the Independent Auditor
of the Entity", issued by the Auditing Practices Board for use in
the United Kingdom. A review of interim financial information
consists of making inquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other
review procedures. A review is substantially less in scope than an
audit conducted in accordance with International Standards on
Auditing (UK and Ireland) and consequently does not enable us to
obtain assurance that we would become aware of all significant
matters that might be identified in an audit. Accordingly, we do
not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that
causes us to believe that the condensed set of financial statements
in the half-yearly financial report for the six months ended 31
December 2019 is not prepared, in all material respects, in
accordance with International Accounting Standard 34 as adopted by
the European Union and the Disclosure and Transparency Rules of the
United Kingdom's Financial Conduct Authority.
CHAPMAN DAVIS LLP
Chartered Accountants
2 Chapel Court
London SE1 1HH
13 March 2020
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
IR UOABRRKUOARR
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March 13, 2020 04:25 ET (08:25 GMT)
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