TIDMTHR
RNS Number : 8978Y
Thor Mining PLC
14 September 2020
14 September 2020
THOR MINING PLC
("Thor" or the "Company")
PRELIMINARY (UNAUDITED) RESULTS FOR THE YEARED 30 JUNE 2020
The Directors of Thor Mining PLC (AIM, ASX: THR) provide the
attached Preliminary (unaudited) Annual Financial Statements
("Financial Statements") for the year ended 30 June 2020.
The Company expects to lodge its audited Annual Financial
Statements by 30 September 2020.
Mick Billing, Executive Chairman of Thor Mining, commented:
"The Preliminary Statements summarise a very active year for the
Company in terms of advancement of existing projects and
investigation of new projects as we observe a rise in demand for,
and price recovery of, a range of minerals and metals. Thor Mining
has a solid portfolio of assets from the development ready 100%
owned Molyhil Tungsten/Molybdenum project, the exciting Kapunda and
Moonta Copper projects via our interest in Envirocopper Ltd (ECL),
the large Tungsten resource at Pilot Mountain, and our new Ragged
Range Gold / Nickel venture in the Pilbara region of Western
Australia, and Uranium / Vanadium project tenements in Utah and
Colorado. If the broad basket minerals sector is setting up for a
buoyant price cycle, then your company is well prepared to
participate."
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulations (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
Enquiries:
Mick Billing +61 (8) 7324 Thor Mining PLC Executive Chairman
1935
Ray Ridge +61 (8) 7324 Thor Mining PLC CFO/Company Secretary
1935
Samantha Harrison/ +44 (0) 207 383 Grant Thornton Nominated Adviser
Niall McDonald 5100 UK LLP
Nick Emerson +44 (0) 1483 SI Capital Ltd Broker
413 500
Updates on the C o m pan y 's activities are regular ly p o sted
on Thor's we bsite w w w.th o r m i n i ng .c o m , which includes
a facility to regi ster to receive these updates by email, and on
the Co m pan y'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% in ter est Aust r alian copper d evelopment
company EnviroCopper 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 on the p o r tion of the historic
Kapunda copper mi ne in South Aust r alia considered recover able
by way of in situ recove ry; and
-- rights to earn up to 75% of the Moonta copper project, also
in South Australia comprising the northern portion of exploration
licence EL5984 and includes a resource estimate for several
deposits considered recover able by way of in situ recove ry .
N ot e s
(1) Refer ASX and AIM an n o u ncement of 23 August 2 0 18
(2) Refer ASX and AIM an n o u ncements of 26 November 2 0 18 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
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
Refer ASX and AIM an n o u ncement of 15 August 2 0 19
Statements of Comprehensive Income for the year ended 30 June
2020
Consolidated Company
Note GBP'000 GBP'000 GBP'000 GBP'000
2020 2019 2020 2019
Administrative expenses (123) (91) (173) (139)
Corporate expenses (663) (601) (339) (271)
Share based payments expense (48) (22) (12) (22)
Realised gain on financial assets 6 (1) 5 -
Exploration expenses (25) (21) - -
Net impairment of subsidiary loans - - (176) (403)
Net impairment of investments - - (49) -
Write off/Impairment of exploration
assets 7 (59) (28) - -
Operating Loss 3 (912) (764) (744) (835)
Interest Received 2 12 - -
Interest paid (4) - - -
Loss on Revaluation of Asset (17) - - -
Loss on Sale of Investments (29) - (8) -
Sundry Income 38 17 - -
Loss before Taxation (922) (735) (752) (835)
Taxation 5 - - - -
Loss for the period (922) (735) (752) (835)
------- ------- -------- --------
Other comprehensive income:
Exchange differences on translating
foreign operations 160 (100) - -
Other comprehensive income for the
period, net of income tax 160 (100) - -
------- ------- -------- --------
Total comprehensive income for the
period (762) (835) (752) (835)
======= ======= ======== ========
Basic loss per share 6 (0.09)p (0.10)p
The accompanying notes form an integral part of these financial
statements.
Statements of Financial Position at 30 June 2020 Co No:
05276414
Consolidated Company
Note GBP'000 GBP'000 GBP'000 GBP'000
2020 2019 2020 2019
ASSETS
Non-current assets
Intangible assets - deferred exploration
costs 7 12, 252 11,688 - -
Investment in subsidiaries 8a - - 1,157 1,206
Investments at cost 8b - 103 - 103
Loans to subsidiaries 8c - - 11,383 11,252
Loan receivable (convertible note) 8d 391 332 - -
Deposits to support performance bonds 9 42 42 - -
Right of use asset 10 41 - - -
Plant and equipment 11 7 14 - -
Total non-current assets 12,733 12,179 12,540 12,561
-------- -------- ----------- -----------
Current assets
Cash and cash equivalents 233 523 229 56
Trade receivables & other assets 12 43 64 29 14
Total current assets 276 587 258 70
-------- -------- ----------- -----------
Total assets 13,009 12,766 12,798 12,631
-------- -------- ----------- -----------
LIABILITIES
Current liabilities
Trade and other payables 13 (307) (245) (39) (12)
Employee annual leave provision (54) (45) - -
Lease Liability 14 (31) - - -
-------- -------- ----------- -----------
Total current liabilities (392) (290) (39) (12)
-------- -------- ----------- -----------
Non Current Liabilities
Lease Liability 14 (11) - - -
Total non-current liabilities (11) - - -
-------- -------- ----------- -----------
Total liabilities (403) (290) (39) (12)
-------- -------- ----------- -----------
Net assets 12,606 12,476 12,759 12,619
======== ======== =========== ===========
Equity
Issued share capital 15 3,733 3,692 3,733 3,692
Share premium 22,288 21,449 22,288 21,449
Foreign exchange reserve 2,244 2,084 - -
Merger reserve 405 405 405 405
Share based payments reserve 16 275 359 275 359
Retained losses (16,339) (15,513) (13,942) (13,286)
-------- -------- ----------- -----------
Total shareholders equity 12,606 12,476 12,759 12,619
======== ======== =========== ===========
Statements of Cash Flows for the year ended 30 June 2020
Consolidated Company
Note GBP'000 GBP'000 GBP'000 GBP'000
2020 2019 2020 2019
Cash flows from operating activities
Operating Loss (912) (764) (744) (835)
Sundry income 38 17 - -
Decrease/(increase) in trade and other
receivables 19 (8) (15) 10
(Decrease)/increase in trade and other
payables 44 (12) 27 (13)
Increase in provisions 9 (4) - -
Depreciation 37 8 - -
Exploration expenditure written off 59 28 - -
Impairment subsidiary loans - - 176 403
Impairment investments in subsidiaries - - 49 -
Share based payment expense 48 22 12 22
Exclusivity fee paid in shares 27 - 27 -
Net cash outflow from operating activities (631) (713) (468) (413)
------- ------- ------- -------
Cash flows from investing activities
Interest received 2 17 - -
Interest paid (4) - - -
Expenditure on refundable performance
bonds - (22) - -
Cash acquired in purchase of subsidiaries - 41 - -
R&D Grants for exploration expenditure 124 - - -
Payments for exploration expenditure (570) (876) - -
Loan advanced (convertible note) (56) (221) - -
Loans to controlled entities - - (174) (943)
Proceeds from sale of investments 56 - - -
Net cash in/(out)flow from investing
activities (448) (1,061) (174) (943)
------- ------- ------- -------
Cash flows from financing activities
Finance lease repaid (30) (10) - -
Net issue of ordinary share capital 815 949 815 949
------- ------- ------- -------
Net cash inflow from financing activities 785 939 815 949
------- ------- ------- -------
Net increase in cash and cash equivalents (294) (835) 173 (407)
Non cash exchange changes 4 (16) - -
Cash and cash equivalents at beginning
of period 523 1,374 56 463
------- ------- ------- -------
Cash and cash equivalents at end of period 233 523 229 56
======= ======= ======= =======
Statements of Changes in Equity For the year ended 30 June
2020
Share
Issued Based
share Share Retained Foreign Currency Translation Merger Payment
Consolidated capital premium losses Reserve Reserve Reserve Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
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)
Options
exercised/lapsed - - 6 - - (6) -
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 - - (922) - - - (922)
Foreign currency
translation
reserve - - - 160 - - 160
-------- --------- --------- ------------------------------------ --------- -------- -------
Total
comprehensive
(loss) for the
period - - (922) 160 - - (762)
-------- --------- --------- ------------------------------------ --------- -------- -------
Transactions with owners in their capacity as owners
Shares issued 41 915 - - - - 956
Cost of shares
issued - (76) - - - - (76)
Options
exercised/lapsed - - 96 - - (96) -
Options issued - - - - 12 12
-------- --------- --------- ------------------------------------ --------- -------- -------
At 30 June 2020 3,733 22,288 (16,339) 2,244 405 275 12,606
======== ========= ========= ==================================== ========= ======== =======
Company
Balance at 1 July
2018 3,675 19,693 (12,457) - 405 297 11,613
Loss for the
period - - (835) - - - (835)
-------- --------- --------- -------- -------
Total
comprehensive
(loss) for the
period - - (835) - - - (835)
-------- --------- --------- ------------------------------------ --------- -------- -------
Transactions with owners in their capacity as owners
Shares issued 17 1,782 - - - - 1,799
Cost of shares
issued - (26) - - - - (26)
Options
exercised/lapsed - - 6 - - (6) -
Options issued - - - - - 68 68
-------- --------- --------- ------------------------------------ --------- -------- -------
At 30 June 2019 3,692 21,449 (13,286) - 405 359 12,619
======== ========= ========= ==================================== ========= ======== =======
Balance at 1 July
2019 3,692 21,449 (13,286) - 405 359 12,619
Loss for the
period - - (752) - - - (752)
-------- --------- --------- ------------------------------------ --------- -------- -------
Total
comprehensive
(loss) for the
period - - (752) - - - (752)
-------- --------- --------- ------------------------------------ --------- -------- -------
Transactions with owners in their capacity as owners
Shares issued 41 915 - - - - 956
Cost of shares
issued - (76) - - - - (76)
Options
exercised/lapsed - - 96 - - (96) -
Options issued - - - - - 12 12
-------- --------- --------- ------------------------------------ --------- -------- -------
At 30 June 2020 3,733 22,288 (13,942) - 405 275 12,759
======== ========= ========= ==================================== ========= ======== =======
Notes to the Accounts for the year ended 30 June 2020
1 Principal accounting policies
a) Authorisation of financial statements
The Group preliminary (unaudited) financial statements of Thor
Mining PLC for the year ended 30 June 2020 were authorised for
issue the Board on 14 September 2020. The Company's ordinary shares
are traded on the AIM Market operated by the London Stock Exchange
and on the Australian Securities Exchange .
b) Statement of compliance with IFRS
The Group's preliminary (unaudited) financial statements have
been prepared for release to the market in advance of its audited
accounts expected to be lodged by the usual deadline of 30
September 2020. The preliminary (unaudited) financial statements
have been prepared in accordance with International Financial
Reporting Standards ("IFRS"), other than the disclosure
requirements associated with Financial Instruments and disclosure
of subsequent events. The principal accounting policies adopted by
the Group and Company are set out below.
c) Basis of preparation and Going Concern
The financial information set out in the announcement does not
constitute the Group's statutory accounts for the years ended 30
June 2019 or 30 June 2020. The financial information for the year
ended 30 June 2019 is derived from the statutory accounts for that
year, which have been delivered to the Registrar of Companies. The
audit of the statutory accounts for the year ended 30 June 2020 is
not yet complete. These accounts will be finalised on the basis of
the financial information presented by the Directors in this
preliminary announcement and will be delivered to the Registrar of
Companies following the Group's annual general meeting.
The consolidated financial statements have been prepared on the
historical cost basis, except for the measurement of assets and
financial instruments to fair value as described in the accounting
policies below, and on a going concern basis.
The financial report is presented in Sterling and all values are
rounded to the nearest thousand pounds ("GBP'000") unless otherwise
stated.
The Group incurred a net loss before tax of GBP922,000 during
the period ended 30 June 2020, and had a net cash outflow of
GBP1,079,000 from operating and investing activities. The
consolidated entity continues to be reliant upon the completion of
capital raisings for continued operations and the provision of
working capital.
d) 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.
The financial statements of subsidiaries are prepared for the
same reporting period as the parent company, using consistent
accounting policies.
All intercompany balances and transactions have been eliminated
in full.
e) Intangible assets - deferred exploration costs
Exploration, evaluation and development expenditure incurred is
accumulated in respect of each identifiable area of interest. These
costs are only carried forward to the extent that they are expected
to be recouped through the successful development of the area or
where activities in the area have not yet reached a stage which
permits reasonable assessment of the existence of economically
recoverable reserves.
Accumulated costs in relation to an abandoned area are written
off in full against the income statement in the year in which the
decision to abandon the area is made.
A review is undertaken of each area of interest to determine the
appropriateness of continuing to carry forward costs in relation to
that area of interest.
Restoration, rehabilitation and environmental costs necessitated
by exploration and evaluation activities are expensed as incurred
and treated as exploration and evaluation expenditure.
f) Revenue
Revenue is recognised to the extent that it is probable that
economic benefits will flow to the group and the revenue can be
reliably measured.
I nterest revenue
Interest revenue is recognised as it accrues using the effective
interest rate method.
g) Deferred taxation
Deferred income tax is provided on all temporary differences at
the balance sheet date between the tax bases of assets and
liabilities and their carrying amounts for financial reporting
purposes.
Deferred income tax assets are recognised for all deductible
temporary differences, carry-forward of unused tax assets and
unused tax losses, to the extent that it is probable that taxable
profit will be available against which the deductible temporary
differences and the carry-forward of unused tax credits and unused
tax losses can be utilised.
Unrecognised deferred income tax assets are reassessed at each
balance sheet date and are recognised to the extent that it has
become probable that future taxable profit will allow the deferred
tax asset to be recovered.
Deferred income tax assets and liabilities are measured at the
tax rates that are expected to apply to the year when the asset is
realised or the liability is settled, based on tax rates (and tax
laws) that have been enacted or substantively enacted at the
Balance Sheet date.
h) Trade and other payables
Trade and other payables are carried at amortised costs and
represent liabilities for goods and services provided to the Group
prior to the end of the financial year that are unpaid and arise
when the Group becomes obliged to make future payments in respect
of the purchase of these goods and services.
i) Foreign currencies
The Company's functional currency is Sterling ("GBP"). Each
entity in the Group determines its own functional currency and
items included in the financial statements of each entity are
measured using that functional currency. As at the reporting date
the assets and liabilities of these subsidiaries are translated
into the presentation currency of Thor Mining PLC at the rate of
exchange ruling at the Balance Sheet date and their Income
Statements are translated at the average exchange rate for the
year. The exchange differences arising on the translation are taken
directly to a separate component of equity.
All other differences are taken to the Income Statement with the
exception of differences on foreign currency borrowings, which, to
the extent that they are used to finance or provide a hedge against
foreign equity investments, are taken directly to reserves to the
extent of the exchange difference arising on the net investment in
these enterprises. Tax charges or credits that are directly and
solely attributable to such exchange differences are also taken to
reserves.
j) Share based payments
During the year the Group has provided share based remuneration
to service providers, in the form of share options. For further
information refer to Note 16.
The cost of equity-settled transactions is measured by reference
to the fair value of the services provided. If a reliable estimate
cannot be made, the fair value of the Options granted is based on
the Black-Scholes model.
In valuing equity-settled transactions, no account is taken of
any performance conditions, other than conditions linked to the
price of the shares of Thor Mining PLC (market conditions) if
applicable.
The cost of equity-settled transactions is recognised, together
with a corresponding increase in equity, over the period in which
the performance and/or service conditions are fulfilled, ending on
the date on which the relevant holders become fully entitled to the
award (the vesting period).
The cumulative expense recognised for equity-settled
transactions at each reporting date until vesting date reflects (i)
the extent to which the vesting period has expired and (ii) the
Group's best estimate of the number of equity instruments that will
ultimately vest. No adjustment is made for the likelihood of market
performance conditions being met as the effect of these conditions
is included in the determination of fair value at grant date. The
Income Statement charge or credit for a period represents the
movement in cumulative expense recognised as at the beginning and
end of that period.
No expense is recognised for awards that do not ultimately vest,
except for awards where vesting is only conditional upon a market
condition.
If the terms of an equity-settled award are modified, as a
minimum an expense is recognised as if the terms had not been
modified. In addition, an expense is recognised for any
modification that increases the total fair value of the share-based
payment arrangement, or is otherwise beneficial to the holder, as
measured at the date of modification.
If an equity-settled award is cancelled, it is treated as if it
had vested on the date of cancellation, and any expense not yet
recognised for the award is recognised immediately. However, if a
new award is substituted for the cancelled award and designated as
a replacement award on the date that it is granted, the cancelled
and new award are treated as if they were a modification of the
original award, as described in the previous paragraph.
k) Share based payments reserve
This reserve is used to record the value of equity benefits
provided to employees, consultants and directors as part of their
remuneration and provided to consultants and advisors hired by the
Group from time to time as part of the consideration paid. The
reserve is reduced by the value of equity benefits which have
lapsed during the year.
l) Cash and cash equivalents
Cash and short-term deposits in the Balance Sheet comprise cash
at bank and in hand and short-term deposits with an original
maturity of three months or less.
For the purposes of the Cash Flow Statement, cash and cash
equivalents consist of cash and cash equivalents as defined above,
net of outstanding bank overdrafts.
m) Trade and other receivables
Trade receivables, which generally have 30 day terms, are
recognised and carried at original invoice amount less an allowance
for any uncollectible amounts.
An allowance for doubtful debts is made when there is objective
evidence that the Group will not be able to collect the debts. Bad
debts are written off when identified.
n) Investments
Investments in subsidiary undertakings are stated at cost less
any provision for impairment in value, prior to their elimination
on consolidation.
Investments in associates are initially recognised at cost and
subsequently accounted for using the equity method "Equity
accounted investments". Any goodwill or fair value adjustment
attributable to the Group's share in the associate is not
recognised separately and is included in the amount recognised as
investment in associate. The carrying amount of the investment in
associates is increased or decreased to recognise the Group's share
of the profit or loss and other comprehensive income of the
associate, adjusted where necessary to ensure consistency with the
accounting policies of the Group. Unrealised gains and losses on
transactions between the Group and its associates are eliminated to
the extent of the Group's interest in those entities. Where
unrealised losses are eliminated, the underlying asset is also
tested for impairment.
o) Financial instruments
The Group's financial instruments, other than its investments,
comprise cash and items arising directly from its operation such as
trade debtors and trade creditors. The Group has overseas
subsidiaries in Australia and USA, whose expenses are denominated
in Australian Dollars and US Dollars. Market price risk is inherent
in the Group's activities and is accepted as such. There is no
material difference between the book value and fair value of the
Group's cash.
p) Merger reserve
The difference between the fair value of an acquisition and the
nominal value of the shares allotted in a share exchange have been
credited to a merger reserve account, in accordance with the merger
relief provisions of the Companies Act 2006 and accordingly no
share premium for such transactions is set-up. Where the assets
acquired are impaired, the merger reserve value is reversed to
retained earnings to the extent of the impairment.
q) Property, plant and equipment
Plant and equipment is stated at cost less accumulated
depreciation and any accumulated impairment losses. Land is
measured at fair value less any impairment losses recognised after
the date of revaluation.
Depreciation is provided on all tangible assets to write off the
cost less estimated residual value of each asset over its expected
useful economic life on a straight-line basis at the following
annual rates:
Land (including option costs) - Nil
Plant and Equipment - between 5% and 25%
All assets are subject to annual impairment reviews.
r) Impairment of assets
The Group assesses at each reporting date whether there is an
indication that an asset may be impaired. If any such indication
exists, or when annual impairment testing for an asset is required,
the Group makes an estimate of the asset's recoverable amount. An
asset's recoverable amount is the higher of its fair value less
costs to sell and its value in use and is determined for an
individual asset, unless the asset does not generate cash inflows
that are largely independent of those from other assets or Groups
of assets and the asset's value in use cannot be estimated to be
close to its fair value. In such cases the asset is tested for
impairment as part of the cash-generating unit to which it belongs.
When the carrying amount of an asset or cash-generating unit
exceeds its recoverable amount, the asset or cash-generating unit
is considered impaired and is written down to its recoverable
amount.
In assessing value in use, the estimated future cash flows are
discounted to their present value using a pre-tax discount rate
that reflects current market assessments of the time value of money
and the risks specific to the asset. Impairment losses relating to
continuing operations are recognised in those expense categories
consistent with the function of the impaired asset unless the asset
is carried at its revalued amount (in which case the impairment
loss is treated as a revaluation decrease).
An assessment is also made at each reporting date as to whether
there is any indication that previously recognised impairment
losses may no longer exist or may have decreased. If such
indication exists, the recoverable amount is estimated. A
previously recognised impairment loss is reversed only if there has
been a change in the estimates used to determine the asset's
recoverable amount since the last impairment loss was recognised.
If that is the case the carrying amount of the asset is increased
to its recoverable amount.
That increased amount cannot exceed the carrying amount that
would have been determined, net of depreciation, had no impairment
loss been recognised for the asset in prior years. Such reversal is
recognised in the Income Statement unless the asset is carried at
its revalued amount, in which case the reversal is treated as a
revaluation increase. After such a reversal the depreciation charge
is adjusted in future periods to allocate the asset's revised
carrying amount, less any residual value, on a systematic basis
over its remaining useful life.
s) Provisions
Provisions are recognised when the Group has a present
obligation (legal or constructive) as a result of a past event, it
is probable that an outflow of resources embodying economic
benefits will be required to settle the obligation and a reliable
estimate can be made of the amount of the obligation.
When the Group expects some or all of a provision to be
reimbursed, for example under an insurance contract, the
reimbursement is recognised as a separate asset but only when the
reimbursement is virtually certain. The expense relating to any
provision is presented in the Income Statement net of any
reimbursement.
If the effect of the time value of money is material, provisions
are discounted using a current pre-tax rate that reflects the risks
specific to the liability.
t) Loss per share
Basic loss per share is calculated as loss for the financial
year attributable to members of the parent, adjusted to exclude any
costs of servicing equity (other than dividends) and preference
share dividends, divided by the weighted average number of ordinary
shares, adjusted for any bonus element.
Diluted loss per share is calculated as loss for the financial
year attributable to members of the parent, adjusted for:
-- costs of servicing equity (other than dividends) and preference share dividends;
-- the after tax effect of dividends and interest associated
with dilutive potential ordinary shares that have been recognised
as expenses; and
-- other non-discretionary changes in revenues or expenses
during the period that would result from the dilution of potential
ordinary shares;
divided by the weighted average number of ordinary shares and
dilutive potential ordinary shares, adjusted for any bonus
element.
u) Share based payments reserve
This reserve is used to record the value of equity benefits
provided to employees, consultants and directors as part of their
remuneration and provided to consultants and advisors hired by the
Group from time to time as part of the consideration paid. The
reserve is reduced by the value of equity benefits which have
lapsed during the year.
v) Foreign currency translation reserve
The foreign currency translation reserve is used to record
exchange differences arising from the translation of the financial
statements of foreign subsidiaries.
w) Leased assets (comparative period ended 30 June 2019 only)
The determination of whether an arrangement is or contains a
lease is based on the substance of the arrangement and requires an
assessment of whether the fulfilment of the arrangement is
dependent on the use of a specific asset or assets and the
arrangement conveys a right to use the asset.
(i) Finance Leases
Assets funded through finance leases are capitalised as fixed
assets and depreciated in accordance with the policy for the class
of asset concerned.
Finance lease payments are apportioned between the finance
charges and reduction of the lease liability so as to achieve a
constant rate of interest on the remaining balance of the
liability. Finance charges are recognised as an expense in the
Income Statement.
(ii) Operating Leases
All operating lease payments are charged to the Income Statement
on a straight line basis over the life of the lease.
From the 1 July 2019, the Group applied the new accounting
standard IFRS 16: Leases.
x) Adoption of new and revised Accounting Standards
In the current year, the Group has adopted all of the new and
revised Standards and Interpretations issued by Accounting
Standards and Interpretations Board that are relevant to its
operations and effective for the current annual reporting period.
The Group has applied the following standards and amendments for
the first time for their annual reporting period commencing 1 July
2019:
-- IFRS 16: Leases
The impact of the adoption of this Standard and the respective
accounting policies is disclosed further below.
This note describes the nature and effect of the adoption of
IFRS 16: Leases on the Group's financial statements and discloses
the new accounting policies that have been applied from 1 July
2019, where they are different to those applied in prior
periods.
The Company as Lessee
At the inception of a contract, the Group assesses if the
contract is a lease or contains a lease. If there is a lease
present, a right-of-use asset and a corresponding lease liability
are recognised by the Group where the Group is a lessee. However,
all contracts that are classified as short-term leases (ie a lease
with a term of 12 months or less) and leases of low-value assets
are recognised as an operating expense on a straight-line basis
over the term of the lease.
Initially the lease liability is measured at the present value
of the lease payments still to be paid at the commencement date.
The lease payments are discounted at the interest rate implicit in
the lease. If this rate cannot be readily determined, the Group
uses the incremental borrowing rate.
Lease payments included in the measurement of the lease
liability are as follows:
-- fixed lease payments less any lease incentives;
-- variable lease payments that depend on an index or rate,
initially measured using the index or rate at the commencement
date;
-- the amount expected to be payable by the lessee under residual value guarantees;
-- the exercise price of purchase options, if the lessee is
reasonably certain to exercise the options;
-- lease payments under extension options, if the lessee is
reasonably certain to exercise the options; and
-- payments of penalties for terminating the lease, if the lease
term reflects the exercise of an option to terminate the lease.
The right-of-use assets comprise the initial measurement of the
corresponding lease liability, any lease payments made at or before
the commencement date and any initial direct costs. The subsequent
measurement of the right-of-use assets is at cost less accumulated
depreciation and impairment losses.
Right-of-use assets are depreciated over the lease term or
useful life of the underlying asset, whichever is the shortest.
Where a lease transfers ownership of the underlying asset or the
cost of the right-of-use asset reflects that the Group anticipates
to exercise a purchase option, the specific asset is depreciated
over the useful life of the underlying asset.
The Company as Lessor
As the Group has no contracts as a lessor, the provisions of
IFRS 16 relating accounting for lease contracts as a lessor are not
applicable.
Initial Application of IFRS 16 Leases
The Group has adopted IFRS 16: Leases retrospectively with the
cumulative effect of initially applying IFRS 16 recognised at 1
July 2019. In accordance with IFRS 16, the comparatives for the
2019 reporting period have not been restated.
The Group has recognised a lease liability and right-of-use
asset for all leases (with the exception of short-term and
low-value leases), where the Group is the lessee.
Lease liabilities are measured at the present value of the
remaining lease payments. The Group's incremental borrowing rate as
at 1 July 2019 was used to discount the lease payments.
The right-of-use assets for the leases have been measured and
recognised in the statement of financial position as at 1 July 2019
at the same amount as the lease liability.
The following practical expedients have been used by the Company
in applying IFRS 16 for the first time:
-- leases that have remaining lease term of less than 12 months
as at 1 July 2019 have been accounted for as short-term leases.
-- the use of hindsight to determine lease terms on contracts
that have options to extend or terminate.
The Company's weighted average incremental borrowing rate on 1
July 2019 applied to the lease liabilities was 4.58%.
y) New standards, amendments and interpretations not yet adopted
There are no other IFRSs or IFRIC interpretations that are not
yet effective that would be expected to have a material impact on
the Group.
2. Revenue and segmental analysis - Group
The Group has an interest in a number of exploration licences
and mining licences, 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. All of
the US licenses are located in the one geological region.
Accordingly, the Group has identified its operating segments to be
Australia and the United States based on the two countries. 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
Head office/
Year ended 30 June 2020 Unallocated Australia United States Consolidated
Revenue
Sundry Income 40 - - 40
Total Segment Expenditure (347) (592) (23) (962)
------------ --------- ------------- ------------
(Loss) from Ordinary Activities
before Income Tax (307) (592) (23) (922
Income Tax (Expense) - - - -
------------ --------- ------------- ------------
Retained (loss) (307) (592) (23) (922)
------------ --------- ------------- ------------
Assets and Liabilities
Segment assets - 10,081 2,670 12,751
Corporate assets 258 - - 258
------------ --------- ------------- ------------
Total Assets 258 10,081 2,670 13,009
------------ --------- ------------- ------------
Segment liabilities - (364) - (364)
Corporate liabilities (39) - - (39)
------------ --------- ------------- ------------
Total Liabilities (39) (364) - (403)
------------ --------- ------------- ------------
Net Assets 219 9,717 2,670 12,606
------------ --------- ------------- ------------
GBP'000 GBP'000 GBP'000 GBP'000
Head office/
Year ended 30 June 2019 Unallocated Australia United States Consolidated
Revenue
Sundry Income 29 - - 29
Total Segment Expenditure (294) (452) (18) (764)
------------ --------- ------------- ------------
(Loss) from Ordinary Activities
before Income Tax (265) (452) (18) (735)
Income Tax (Expense) - - - -
------------ --------- ------------- ------------
Retained (loss) (265) (452) (18) (735)
------------ --------- ------------- ------------
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
------------ --------- ------------- ------------
3. Operating loss - group
2020 2019
GBP'000 GBP'000
------- -------
This is stated after charging:
Depreciation 37 8
Auditors' remuneration - audit services 27 25
Auditors' remuneration - non audit services - -
Options issued - directors, staff, and
consultants - -
Directors emoluments - fees and salaries 290 369
Auditors' remuneration for audit services above includes
GBP18,000 (2019: GBP17,000) to Chapman Davis LLP for the audit of
the Company and Group. Remuneration to BDO for the audit of the
Australian subsidiaries was GBP8,822 (2019: GBP7,251) .
4. Directors and executive disclosures - Group
All Directors are appointed under the terms of a Directors
letter of appointment. Each appointment, with the exception of Mr
Bradey, provides for annual fees of Australian dollars $40,000 for
services as Directors. In the case of Australian based Directors
this annual fee is inclusive of 9.5% as a company contribution to
Australian statutory superannuation schemes. The agreement allows
for any services supplied by any Directors, other than Mr Bradey,
to the Company and any of its subsidiaries in excess of two days in
any calendar month, can be invoiced to the Company at market rate,
currently at A$1,000 per day, other than Mr Michael Billing at a
rate of A$1,200 per day and Mr David Thomas (retired 29 November
2019) at a rate of A$1,500 per day. From December 2019 the Board
agreed to alter the threshold for additional invoicing for services
provided by Directors to services provided in excess of four days
in any calendar month.
Mr Bradey receives an annual full time equivalent salary of
$217,000 plus $21,000 in statutory superannuation benefits in his
role as Exploration Manager. Mr Bradey does not receive additional
remuneration as a Director.
(a) Details of Key Management Personnel (KMP) during the year
ended 30 June 2020
(i) Chairman and Chief Executive Officer
Michael Billing Executive Chairman and Chief Executive Officer
(ii) Directors
Richard Bradey Executive Director
Mark Potter Non-executive Director (appointed 27 August
2019)
David Thomas Non-executive Director (Retired 29 November
2019)
Alastair Middleton Non-executive Director (Retired 29 November
2019)
(iii) Executives
Ray Ridge CFO/Company Secretary (Australia)
Stephen Ronaldson Company Secretary (UK)
(b) Compensation of Key Management Personnel
Compensation Policy
The compensation policy is to provide a fixed remuneration
component and a specific equity related component. There is no
separation of remuneration between short term incentives and long
term incentives. The Board believes that this compensation policy
is appropriate given the stage of development of the Company and
the activities which it undertakes and is appropriate in aligning
director and executive objectives with shareholder and businesses
objectives.
The compensation policy, setting the terms and conditions for
the executive Directors and other executives, has been developed by
the Board after seeking professional advice and taking into account
market conditions and comparable salary levels for companies of a
similar size and operating in similar sectors. Executive Directors
and executives receive either a salary or provide their services
via a consultancy arrangement. Directors and executives do not
receive any retirement benefits other than compulsory
Superannuation contributions where the individuals are directly
employed by the Company or its subsidiaries in Australia. All
compensation paid to Directors and executives is valued at cost to
the Company and expensed.
The Board policy is to compensate non-executive Directors at
market rates for comparable companies for time, commitment and
responsibilities. The Board determines payments to the
non-executive Directors and reviews their compensation annually,
based on market practice, duties and accountability. Independent
external advice is sought when required. The maximum aggregate
amount of fees that can be paid to Directors is subject to approval
by shareholders at a General Meeting. Fees for non-executive
Directors are not linked to the performance of the economic entity.
However, to align Directors' interests with shareholder interests,
the Directors are encouraged to hold shares in the Company and may
receive options.
Paid/Payable Total Salary
in cash Shares & Fees Options Total
30 June 2020 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------ ------- ------------ ------- -------
Directors: (1)
Michael Billing(5) 131 - 131 - 131
Mark Potter(4,5) 21 - 21 - 21
Richard Bradey(3) 112 - 112 - 112
David Thomas(2) 15 - 15 - 15
Alastair Middleton(2) 11 - 11 - 8
Key Personnel: (1)
Ray Ridge(1) 40 - 40 - 40
(1) As at 30 June 2020 amounts of GBP101,692, GBP5,329, and
GBP13,406, remained unpaid to Messrs Billing, Potter, and Ridge
respectively.
(2) Retired 29 November 2019.
(3) Mr Bradey receives a salary as an executive of the Company,
and does not receive any additional fees as a Director.
(4) Appointed 27 August 2019.
(5) Messrs Billing and Potter elected to receive 50% of their
directors fees for the 6 months to 30 June 2020 by Thor shares in
lieu of cash payment. Following shareholder approval on 7 July
2020, 1,587,302 ordinary shares were issued on 9 July 2020, to each
of Messrs Billing and Potter in lieu of $10,000 in directors fees
owing to each.
Paid/Payable Total Salary
in cash Shares(2) & Fees Options Total
30 June 2019 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------ --------- ------------ ------- -------
Directors: (1)
Michael Billing(2) 148 - 148 - 148
Richard Bradey 131 - 131 - 131
David Thomas 45 - 45 - 45
Alastair Middleton 45 - 45 - 45
Paul Johnson(3) - - - - -
Key Personnel:
Ray Ridge(1) - - 46 - 46
(1) As at 30 June 2019 amounts of GBP73,365, GBP8,502, GBP9,372,
and GBP4,211, remained unpaid to Messrs Billing, Thomas, Middleton
and Ridge respectively.
(2) In lieu of a cash payment for consulting fees, Mr Billing
elected to utilise GBP36,000 owing for consulting fees as payment
for the exercise of 3,000,000 options at an exercise price of
GBP0.012 on 2 November 2018.
(3) Resigned 13 July 2018.
(c) Compensation by category Group
2020 2019
GBP'000 GBP'000
--------------- -------------
Key Management Personnel
Short-term 317 400
Share Option charges - -
Post-employment 13 15
330 415
=============== =============
(d) Options and rights over equity instruments granted as
remuneration
No options were granted over ordinary shares to Directors, as
remuneration, during the year ended 30 June 2020.
(e) Options holdings of Key Management Personnel
The movement during the reporting period in the number of
options over ordinary shares in Thor Mining PLC held, directly,
indirectly or beneficially, by key management personnel, including
their personally related entities, is as follows:
Held at
30/6/19 Options Options Options Vested and
Key Management or appointment Lapsed Lapsed Lapsed Held at exercisable
Personnel date (Note A) (Note B) (Note C) 30/6/20 at 30/6/20
------------------- --------------- ----------- ------------- ----------- ------------ ------------
Michael Billing 14,500,000 (7,000,000) (3,000,000) - 4,500,000 4,500,000
Mark Potter - - - - - -
Richard Bradey 9,500,000 - - (1,500,000) 8,000,000 3,000,000
David Thomas
(1) 9,500,000 (4,000,000) - - 5,500,000 5,500,000
Alastair Middleton
(1) 5,500,000 - - - 5,500,000 5,500,000
(1) Balances held at the date of r etirement (29 November
2019).
Notes:
A. Options lapsed on 26 July 2019. Exercise price was GBP0.0125 per share.
B. Options lapsed 31 March 2020. Exercise price was GBP0.018 per share.
C. Options lapsed 27 June 2020. Exercise price was GBP0.018 per share.
Held at
30/6/18 Options Options Vested and
Key Management or appointment Lapsed Exercised Held at exercisable
Personnel date (Note A) (Note B) 30/6/19 at 30/6/19
------------------- --------------- ----------- ------------- ------------ ---------------
Michael Billing 26,265,040 (8,765,040) (3,000,000) 14,500,000 14,500,000
Richard Bradey 9,500,000 - - 9,500,000 4,500,000
David Thomas 11,806,800 (2,306,800) - 9,500,000 9,500,000
Alastair Middleton 5,500,000 - - 5,500,000 5,500,000
Paul Johnson
(1) 26,825,000 - - 26,825,000 26,825,000
(1) Balance held at the date of r esignation (13 July 2018).
Notes:
A. Options lapsed on 14 April 2019. Exercise price was GBP0.0125 per share.
B. In lieu of a cash payment for consulting fees, Mr Billing
elected to utilise GBP36,000 owing for consulting fees as payment
for the exercise of 3,000,000 options at an exercise price of
GBP0.012 on 2 November 2018.
No options held by Directors or specified executives are vested
but not exercisable, except as set out above.
(f) Other transactions and balances with related parties
Specified Directors Transaction Note 2020 2019
GBP'000 GBP'000
------- -------
Consulting
Michael Billing Fees (i) 111 126
Mark Potter Directors Fees (ii) 17 -
Consulting
Mark Potter Fees (ii) 4 -
Consulting
David Thomas Fees (iii) 6 23
(i) The Group used the consulting services of MBB Trading Pty
Ltd a company of which Mr Michael Billing is a shareholder and
Director. Services are provided as Executive Chairman.
(ii) Mark Potter is engaged as a Director, and provides
consulting fees, through Kiran Capital a company of which Mr Mark
Potter is a shareholder and Director.
(iii) The Group used the services of Thomas Family Trust with
whom Mr David Thomas has a contractual relationship (prior to date
of retirement on 29 November 2019).
Amounts were billed based on normal market rates for such
services and were due and payable under normal payment terms. These
amounts paid to related parties of Directors are included as Salary
& Fees in Note 4(b).
5. Taxation - Group
2020 2019
GBP'000 GBP'000
Analysis of charge in year - -
------- -------
Tax on profit on ordinary activities - -
======= =======
Factors affecting tax charge for year
The differences between the tax assessed for the year and the
standard rate of corporation tax are explained as follows:
2020 2019
GBP'000 GBP'000
Loss on ordinary activities before tax (922) (735)
------- -------
Effective rate of corporation tax in the UK 19.0% 19.0%
Loss on ordinary activities multiplied by the standard
rate of corporation tax (175) (140)
Effects of:
Future tax benefit not brought to account 175 140
------- -------
Current tax charge for year - -
======= =======
No deferred tax asset has been recognised because there is
insufficient evidence of the timing of suitable future profits
against which they can be recovered.
6. Loss per share
2020 2019
Loss for the year (GBP 000's) (922) (735)
Weighted average number of Ordinary shares in
issue 990,413,655 714,111,518
Loss per share (pence) - basic (0.09)p (0.10)p
The basic loss per share is derived by dividing the loss for the
period attributable to ordinary shareholders by the weighted
average number of shares in issue.
As the inclusions of the potential Ordinary Shares would result
in a decrease in the loss per share they are considered to be
anti-dilutive and as such not included.
7. Intangible fixed assets - Group
Deferred exploration costs
GBP'000 GBP'000
2020 2019
Cost
At 1 July 11,688 10,133
Exploration expenditure 469 879
Acquisitions(1) - 776
Disposals - -
Exchange gain/(loss) 154 (72)
Exploration written off(2) (59) (28)
At 30 June 12,252 11,688
------- -------
Amortisation
At 1 July and 30 June - -
Write-off exploration tenements previously impaired - -
Balance - -
Impairment for period - -
Exchange gain - -
-------- --------
At 30 June - -
-------- --------
Net book value at 30 June 12,252 11,688
-------- --------
In the year ended 30 June 2020 the Directors undertook an
impairment review of the deferred exploration costs, resulting in
an impairment expense of Nil (2019: Nil).
(1) During the year ended 30 June 2019, interests in exploration
leases were acquired for a total cost of GBP776,000 comprising:
- GBP301,000 for the acquisition of the Bonya tenements, being a
40% interest in EL29701 and 100% of EL29599. Consideration was
A$550,000 (GBP301,000) paid by the issue of 14,527,205 shares at
A$0.03786. Refer ASX Announcements 25 September 2018, 19 April 2018
and 28 March 2018. EL29599 was peripheral to the acquisition and
was subsequently relinquished, with a GBP28,000 write-off
representing part of the total acquisition cost allocated to this
exploration lease.
- GBP475,000 for the acquisition, on 27 March 2019, of interests
in nine licence applications, at various stages of advancement,
prospective for gold and uranium, and cover a total of 607 square
kilometres in the Pilbara region of Western Australia, and the
Northern Territory of Australia. The transaction occurred through
the acquisition of a 100% interest in two companies Hamersley
Metals Pty Ltd and Pilbara Goldfields Pty Ltd. Total consideration
of GBP475,000 consisted of:
o GBP450,500 as 53 million Thor shares issued on 10 April 2019,
at an issue price of 0.85p per share,
o GBP68,000 as 26,500,000 options issued following shareholder
approval on 23 May 2019, with an exercise price of 1.3p and expiry
of 23 May 2022. The GBP68,000 valuation for the options was
calculated using the Black-Scholes option pricing methodology -
refer Note 16.
o Less GBP41,000 of cash and GBP2,500 other receivables in the
two companies acquired.
(2) Deferred costs of GBP59,000 (2019: GBP28,000) were
written-off, relating to tenements relinquished during the
year.
In the year ended 30 June 2020, the write-down predominantly
related to two Molyhil tenements not required for the Molyhil
project (GBP56,000). The remaining GBP3,000 related to one of the
tenements held by the subsidiary company, Hamersley Metals Pty Ltd,
acquired in the prior year. The tenement was granted
post-acquisition, and was subsequently relinquished as it was not
considered a core part of the acquisition.
In the prior year ended 30 June 2019, the write down related to
one of the Bonya tenements that was peripheral to the acquisition
of those tenements earlier in that year (refer footnote 1
above).
8. Investments
The Company holds 20% or more of the share capital of the
following companies:
Company Country of registration Shares held Class %
or incorporation
Molyhil Mining Pty Ltd (1) Australia Ordinary 100
Hale Energy Limited Australia Ordinary 100
Black Fire Industrial Minerals Pty Ltd (2) Australia Ordinary 100
Industrial Minerals (USA) Pty Ltd (3) Australia Ordinary 100
Pilot Metals Inc (4) USA Ordinary 100
BFM Resources Inc (5) USA Ordinary 100
Hamersley Metals Pty Ltd(6) Australia Ordinary 100
Pilbara Goldfields Pty Ltd(7) Australia Ordinary 100
(1) Molyhil Mining Pty Ltd is engaged in exploration and evaluation activities focused at
the Molyhil project in the Northern Territory of Australia.
(2) Black Fire Industrial Minerals Pty Ltd is a holding company only. It owns 100% of the
shares in Industrial Minerals (USA) Pty Ltd.
(3) Industrial Minerals (USA) Pty Ltd is a holding company only. It owns 100% of the shares
in Pilot Metals Inc and BFM Resources Inc.
(4) Pilot Metals Inc is engaged in exploration and evaluation activities focused at the Pilot
Mountain project in the US state of Nevada.
(5) BFM Resources Inc is engaged in exploration and evaluation activities focused at the
Pilot Mountain project in the US state of Nevada.
(6) Hamersley Metals Pty Ltd was acquired on 27 March 2019. The company holds tenements in
the Northern Territory of Australia.
(7) Pilbara Goldfields Pty Ltd was acquired on 27 March 2019. The company holds a number
of exploration tenements, in Western Australia.
Messrs Billing and Bradey are Directors of each of the above companies.
Consolidated Company
GBP'000 GBP'000 GBP'000 GBP'000
2020 2019 2020 2019
(a) Investments Subsidiary companies:
Molyhil Mining Pty Ltd - - 700 700
Less: Impairment provision against investment - - (700) (700)
Hale Energy Limited - - 1,277 1,277
Less: Impairment provision against investment - - (1,277) (1,277)
Black Fire Industrial Minerals Pty Ltd - - 688 688
Hamersley Metals - - 170 170
Less: Impairment provision against investment - - (15) -
Pilbara Goldfields - - 348 348
Less: Impairment provision against investment - - (34) -
- - 1,157 1,206
--------------- -------- ------------------------ --------
Consolidated Company
GBP'000 GBP'000 GBP'000 GBP'000
2020 2019 2020 2019
8. Investments (continued)
(b) Investments at cost:
Hawkstone Mining Limited - 103 - 103
- 103 - 103
------- ------- ------- -------
On 7 September 2018, Hawkstone Mining Limited (Hawkstone) (ASX:
HWK) acquired 100% of the shares on issue in US Lithium Pty Ltd, a
company in which Thor had an interest of 6.25% at that time.
Consideration received by Thor as follows:
- 7,421,875 Hawkstone shares received following the acquisition; and
- 7,812,500 Hawkstone shares received on 14 October 2019,
following the declaration of an inferred resource at the Big Sandy
Lithium Project .
In the prior year ending 30 June 2019, Thor's investment was
carried at its original cost of the investment in US Lithium Pty
Ltd of GBP103,000, comprised of 7,421,875 Hawkstone shares held by
Thor with a market value at that time of $156,000 (GBP86,000),
together with the contingent right to receive a further 7,812,500
Hawkstone shares.
During the year ended 30 June 2020, Thor sold 15,234,375
Hawkstone shares for proceeds of GBP56,000.
(c) Loans to s ubsidiaries:
Molyhil Mining Pty Ltd -- 10,571 10,560
Less: Impairment provision against loan --(1,783) (1,602)
Hale Energy Limited -- 1,644 1,591
Less: Impairment provision against loan --(1,253) (1,258)
Black Fire Industrial Minerals Pty Ltd -- 1,035 1,035
Pilot Metals Inc -- 1,101 922
Hamersley Metals -- 7 2
Pilbara Goldfields -- 61 2
-- 11,383 11,252
------- -------
The loans to subsidiaries are non-interest bearing, unsecured
and are repayable upon reasonable notice having regard to the
financial stability of the company.
Consolidated Company
GBP'000 GBP'000 GBP'000 GBP'000
2020 2019 2020 2019
8. Investments (continued)
(d) Loan receivable (convertible note):
Environmental Copper Recovery SA Pty Ltd 391 332 - -
391 332 - -
------- ------- ------- -------
EnviroCopper Limited (EnviroCopper), via its subsidiary
Environmental Copper Recovery SA Pty Ltd (ECR), holds an agreement
to earn, in two stages, up to 75% of the rights over metals which
may be recovered via in-situ recovery (ISR) contained in the
Kapunda deposit, from Australian listed company, Terramin Australia
Limited (ASX: TZN). Another subsidiary of EnviroCopper,
Environmental Metals Recovery Pty Ltd (EMR) has a right to earn up
to a 75% interest in the Moonta Copper Project, which comprises the
northern section of exploration licence EL5984 held by Andromeda
Metals Limited (ASX: ADN).
The Kapunda Copper Project has an ISR amenable Inferred Resource
Estimate of 119,000 tonnes of contained copper, together with
having secured A$2.85 million Australian Government CRC-P grant
funding (refer AIM Announcement of 10 February 2018 and ASX
announcement 12 February 2018).
The Moonta Copper Project has an ISR amenable Inferred Resource
Estimate of 114,000 tonnes of contained copper (refer ASX and AIM
announcement of 15 August 2019).
To date Thor has been investing in EnviroCopper's subsidiary ECR
through convertible notes. Convertible notes advanced to ECR to 30
June 2020 total A$700,000 (GBP391,000). This comprises A$600,000
that may be converted into a 25% interest in EnviroCopper and the
first A$100,000 advanced of a total of $400,000 in additional
payments required for an additional 5% interest in EnviroCopper. At
30 June 2020, the carrying value remains classified as a loan
receivable from ECR, in the Group's Statement of Financial
Position, at the lower of cost and net realisable value.
Subsequent to 30 June 2020, Thor formally converted its $600,000
loan to a 25% interest in EnviroCopper and have nominated a
representative to join the Board of EnviroCopper. Accordingly, the
loan receivable from ECR will be reclassified in the Group's
Statement of Financial Position to an equity accounted investment
in Enviro Copper for future reporting periods.
Also subsequent to year end, Thor has advanced a further
$115,000, and is expecting to make the final $185,000 advance in
the coming year ended 30 June 2021, enabling Thor to take its
equity interest in EnviroCopper to 30%.
9. Deposits supporting performance bonds
Consolidated Company
GBP'000 GBP'000 GBP'000 GBP'000
2020 2019 2020 2019
Deposits with banks and Governments 42 42 - -
42 42 - -
------- ------- ------- -------
10. RIGHT OF USE ASSET
The Company's Right of use assets relates to 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.
Consolidated Company
GBP'000 GBP'000 GBP'000 GBP'000
2020 2019 2020 2019
(i) IFRS 16 related amounts recognised
in the Statement of Financial Position
Leased building 72 - - -
Less: accumulated depreciation (31) - - -
------- ------- ------- -------
Right of use asset 41 - - -
------- ------- ------- -------
Movements in Carrying Amount
Opening balance - - - -
Recognised on initial application of IFRS16
(previously classified as an operating
lease) 72 - - -
Depreciation expense (30) - - -
------- ------- ------- -------
Foreign exchange translation gain
/ (loss) (1)
------- ------- ------- -------
41 - - -
------- ------- ------- -------
(ii) IFRS 16 related amounts recognised
in the Statement of Comprehensive
Income/(Loss)
Depreciation charge related to right
of use asset (30) - - -
Interest expense on lease liabilities (2) - - -
-
(iii) Total Full Year cash out flows
for leases (30) - - -
11. Property, plant and equipment
Plant and Equipment:
At cost 60 60 - -
Accumulated depreciation (53) (46) - -
Total Property, Plant and Equipment 7 14 - -
====== ====== ====== =======
Movements in Carrying Amounts
Movement in the carrying amounts for each class of property,
plant and equipment between the beginning and the end of the
current financial year.
At 1 July 14 22 - -
Additions - - - -
Foreign exchange impact, net - - - -
Disposals - - - -
Depreciation expense (7) (8) - -
At 30 June 7 14 - -
====== ======= ======= =======
Consolidated Company
GBP'000 GBP'000 GBP'000 GBP'000
2020 2019 2020 2019
12. Trade receivables and other assets
Current
Trade and other receivables 21 45 29 14
Prepayments 22 19 - -
43 64 29 14
13. Current trade and other payables
Trade payables (203) (163) (39) (13)
Other payables (104) (82) - -
(307) (245) (39) (13)
----- ----- ---- ----
14. Lease liability
Lease Liability is Represented by:
Current 31 ---
Non Current 11 ---
Total Lease Liability 42 ---
15. Issued share capital
2020 2019
GBP'000 GBP'000
Issued up and fully paid :
982,870,766 'Deferred Shares' of GBP0.0029 each (1) 2,850 2,850
7,928,958,500 'A Deferred Shares' of GBP0.000096 each
(2) 761 761
1,224,996,863 Ordinary shares of GBP0.0001 each 122 81
(2019: 982,870,766 'Deferred Shares' of GBP0.0029 each,
7,928,958,500 'A Deferred Shares' of GBP0.000096 each
and 816,959,363 ordinary shares of GBP0.0001 each)
------- ---------
3,733 3,692
======= =========
Movement in share capital
2020 2019
Ordinary shares of GBP0.0001 Number GBP'000 Number GBP'000
At 1 July 816,959,363 3,692 648,573,546 3,675
Shares issued for cash 395,000,000 40 47,058,823 5
Shares issued for acquisition 8,350,000 1 67,527,205 7
Shares issued to service providers 4,687,500 - 1,100,000 -
Warrants Exercised - - 52,699,789 5
At 30 June 1,224,996,863 3,733 816,959,363 3,692
------------- ------- -------------- ---------
Nominal Value
(1) The nominal value of shares in the company was originally
0.3 pence. At a shareholders meeting in September 2013, the
Company's shareholders approved a re-organisation of the company's
shares which resulted in the creation of two classes of shares,
being:
-- Ordinary shares with a nominal value of 0.01 pence, which
continued as the company's listed securities, and
-- 'Deferred Shares' with a nominal value of 0.29 pence which,
subject to the provisions of the Companies Act 2006, may be
cancelled by the company, or bought back for GBP1 and then
cancelled. These deferred shares are not quoted and carry no rights
whatsoever.
(2) At a shareholders meeting in November 2016, the Company's
shareholders approved a re-organisation of the company's shares
which, on the 1 December 2016, resulted in the existing Ordinary
Shares of 0.01 pence being further split as follows:
-- Ordinary shares with a nominal value of 0.0004 pence, and
-- 'A Deferred Shares' with a nominal value of 0.0096 pence
which, subject to the provisions of the Companies Act 2006, may be
cancelled by the company, or bought back for GBP1 and then
cancelled. These deferred shares are not quoted and carry no rights
whatsoever.
Warrants and Options on issue
The following warrants (in UK) and options (in Australia) have
been granted by the Company and have not been exercised as at 30
June 2020:
Number Grant Date Expiry Date Exercise Price
10,000,000 (1) 13 Jun 2018 2 Nov 2020 GBPGBP0.0150
5,000,000 (2) 13 Jun 2018 29 Dec 2020 GBPGBP0.0450
15,000,000 (3) 13 Jun 2018 7 Jun 2021 GBPGBP0.035625
47,058,823 (4) 10 Apr 2019 10 Apr 2022 GBPGBP0.013
26,500,000 (5) 23 May 2019 23 May 2022 GBPGBP0.013
9,450,000 (6) 29 Nov 2019 29 Nov 2024 GBPGBP0.002
113,008,823 Total outstanding
------------------------------
Share options (termed warrants in the UK) carry no rights to
dividends and no voting rights.
(1) Options granted to a Director, as approved by
shareholders.
(2) 'Commencement' Options. Upon the appointment of Richard
Bradey as a Director, the Company agreed to grant the Commencement
Options, as approved by shareholders. The Options will vest with Mr
Bradey once the AIM traded closing price for the Company's Ordinary
Shares exceeds GBP0.06 for 20 consecutive business days.
(3) Options were granted to Directors of the Company, as
approved by shareholders.
(4) Granted to investors as part of a capital raise.
(5) Granted as part of consideration for the acquisition of
Hamersley Metals Pty Ltd and Pilbara Goldfields Pty Ltd, following
shareholder approval.
(6) 9,450,000 Granted to lead broker of a capital raise,
Hybridan LLP
16. Share based payments reserve
2020 2019
GBP'000 GBP'000
At 1 July 359 297
Exercised options @ GBP0.001770 - (1)
Lapsed options @ GBP0.0011770 - (1)
Lapsed options @ GBP0.001857 - (4)
Issued for an acquisition @ GBP0.002582 - 68
Issued options @ GBP0.001320 12 -
Lapsed options @ GBP0.002710 (4) -
Lapsed options @ GBP0.004469 (67) -
Lapsed options @ GBP0.001275 (25)
At 30 June 275 359
------- -------
Options are valued at an estimate of the cost of the services
provided. Where the fair value of the services provided cannot be
estimated, the value of the options granted is calculated using the
Black-Scholes model taking into account the terms and conditions
upon which the options are granted. The following table lists the
inputs to the model used for the share options in the balance of
the Share Based Payments Reserve as at 30 June 2020 or lapsed
during the year ended 30 June 2020.
(i) Options comprising the share based payments reserve at 30
June 2020
10,000,000 issued to a Director on 13 June 2018
Dividend yield 0.00%
Underlying Security spot price GBP0.0205
Exercise price GBP0.015
Standard deviation of returns 60%
Risk free rate 2.12%
Expiration period 2.4yrs
Black Scholes valuation per option GBP0.009782
5,000,000 issued to a Director on 13 June 2018
Dividend yield 0.00%
Underlying Security spot price GBP0.0205
Exercise price GBP0.045
Standard deviation of returns 60%
Risk free rate 2.23%
Expiration period 2.5yrs
Black Scholes valuation per option GBP0.003428
15,000,000 issued to Directors on 13 June 2018
Dividend yield 0.00%
Underlying Security spot price GBP0.0205
Exercise price GBP0.035625
Standard deviation of returns 60%
Risk free rate 2.23%
Expiration period 3yrs
Black Scholes valuation per option GBP0.005289
26,500,000 issued for an acquisition on 23 May 2019
Dividend yield 0.00%
Underlying Security spot price GBP0.0085
Exercise price GBP0.013
Standard deviation of returns 60%
Risk free rate 2.23%
Expiration period 3.16yrs
Black Scholes valuation per option GBP0.002582
9,450,000 issued to a broker on 29 November 2019
Dividend yield 0.00%
Underlying Security spot price GBP0.0024
Exercise price GBP0.002
Standard deviation of returns 60%
Risk free rate 0.71%
Expiration period 5yrs
Black Scholes valuation per option GBP0.001320
(ii) Options lapsed in the year ended 30 June 2020
1,500,000 issued to a nominee of an employee on 27 June
2017
Dividend yield 0.00%
Underlying Security spot price GBP0.0105
Exercise price GBP0.018
Standard deviation of returns 60%
Risk free rate 1.79%
Expiration period 3yrs
Black Scholes valuation per option GBP0.002710
15,000,000 issued to Directors on 28 July 2017
Dividend yield 0.00%
Underlying Security spot price GBP0.013555
Exercise price GBP0.018
Standard deviation of returns 60%
Risk free rate 1.89%
Expiration period 3yrs
Black Scholes valuation per option GBP0.004469
20,000,000 issued to Directors on 11 October 2016
Dividend yield 0.00%
Underlying Security spot price GBP0.00625
Exercise price GBP0.0125
Standard deviation of returns 60%
Risk free rate 1.67%
Expiration period 2.79yrs
Black Scholes valuation per option GBP0.001275
17. Analysis of changes in net cash and cash equivalents
1 July 2019 Cash flows Non-cash changes 30 June 2019
GBP'000 GBP'000 GBP'000 GBP'000
Cash at bank and in hand - Group 523 (294) 4 233
----------- ---------- ---------------- -------------
18. Contingent liabilities and commitments
a) Exploration commitments
Ongoing exploration expenditure is required to maintain title to
the Group mineral exploration permits. No provision has been made
in the financial statements for these amounts as the expenditure is
expected to be fulfilled in the normal course of the operations of
the Group.
b) Claims of native title
The Directors are aware of native title claims which cover
certain tenements in the Northern Territory. The Group's policy is
to operate in a mode that takes into account the interests of all
stakeholders including traditional owners' requirements and
environmental requirements. At the present date no claims for
native title have seriously affected exploration by the
Company.
c) Contingent Liability
As at 30 June 2020, the Group had no contingent liabilities.
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END
FR KKQBQCBKKFCD
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September 14, 2020 05:51 ET (09:51 GMT)
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