18:00 Wed 18 Mar 2020
Savannah Resources - Final Results for the Year Ended 31 December 2019
Annual Report and Financial Statements for the Year Ended
2019 Summary
Mina do
· Became sole project owner through the acquisition of the minority 25% stake
· Executed an option to acquire an adjacent lithium Mining Lease Application area
· Advanced negotiations around the project's future commercialisation and financing including engagement with several of the
· Progressed the Environmental Impact Assessment ('EIA') and Definitive Feasibility Study ('DFS')
· Expanded the DFS' metallurgical test programme to further de-risk the project's future production
· Increased the Li2O resource by 37% y-o-y and announced a maiden 14.4Mt co-product resource
· Received three 25-year Mining Concession Licences covering the project's 4.4Bt resource
Block 4 & 5 Copper Projects,
· Received notice of the
· Initiated a strategic review reflecting the lower priority ranking now given to these assets
Corporate
· Completed a
· Loss of
· Year-end cash position of
2020 Outlook
Mina do
· Submit the project's EIA and other licencing related documents to the authorities for review and approval, plus expand the community engagement activities
· Commercialise the project by partnering with customers and other strategic groups
· Complete the project's DFS in support of securing construction financing
· Progress the Project's Pre-Feasibility Study
Block 4 & 5 Copper Projects,
· Complete the strategic review of these assets and action the conclusions
To view the press release with the illustrative maps and diagrams please use the following link:
http://www.rns-pdf.londonstockexchange.com/rns/5404G_1-2020-3-17.pdf
"Coronavirus is, first and foremost, a deeply concerning global public health crisis which we all hope to see contained quickly, and Savannah has acted promptly itself to safeguard the wellbeing of both its employees and other stakeholders. One of its many secondary effects is the impact it has had on global supply chains which incorporate
"The car sales statistics show that the EV revolution is well underway in
"In the meantime, our focus remains firmly on completing the other aspects of the project's pre-development phase as soon as possible. This means lodging the EIA and other licence related documentation with the Portuguese authorities, finishing the DFS, obtaining popular acceptance for the project based on the social and economic benefits it can bring, and making preparations to secure the finance required to build the project.
"At nearly 3,000 pages combined, the EIA and accompanying Mine Plan document we are preparing to submit as part of the project's licencing process represent a huge effort by Savannah's staff and consultants. Not only are these documents critical for the project's approval by the Portuguese authorities, but they will be of great benefit in our continued development of our community relations plan and provide a significant amount of content for the DFS which we plan to complete later this year.
"Away from
"There was also progress with the Mining Licence applications in
"While further uncertainty must be expected over the coming months, primarily due to the Coronavirus outbreak and its impact on so many facets of everyday life, a recent
Availability of Annual Report and Financial Statements
Copies of the Company's full Annual Report and Financial Statements are expected to be posted to shareholders shortly and will also be made available to download today from the Company's website www.savannahresources.com.
Annual General Meeting
Notice of the Company's AGM will be announced in due course.
Regulatory Information
This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014.
For further information please visit www.savannahresources.com or contact:
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Tel: +44 20 7117 2489
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Tel: +44 20 3470 0470
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finnCap Ltd (Joint Broker)
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Tel: +44 20 7220 0500
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Tel: +44 20 7659 1225
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Tel: +44 20 7236 1177 |
About Savannah
Savannah is an energy metals group focussed on becoming the first lithium raw material producer in
The Company also has a Consortium Agreement with Rio Tinto on the world class
Savannah is listed and regulated on AIM and the Company's ordinary shares are also available on the Quotation Board of the
Competent Person and Regulatory Information
The information in this announcement that relates to exploration results is based upon information compiled by Mr
The Information in this report that relates to Mineral Resources and Exploration Targets is based on information compiled by Mr
This announcement is based upon information compiled by Mr
Chairman's Statement
2019 was another important year for Savannah and the lithium industry, of which the Group aims to be an integral part. Undeniably, lithium raw materials and the Savannah share price both performed poorly during 2019. Nonetheless, our company made significant progress last year in developing the potential of our Mina do Barroso asset, and we regard the fall in lithium raw material and chemical prices as an over-correction, masking the underlying global trend towards an electrified future in which lithium ion batteries will have a key role. The year was also marked by the award of the three, key mining licences in
Mina do Barroso and Savannah have a vital, long term, role to play in the European lithium battery industry and have the potential to bring
Progress in
We also made progress in
In respect of the Coronavirus pandemic we are proud to have already taken actions to safeguard the wellbeing of both our employees and other stakeholders at all our operating sites ahead of official recommendations or requirements by governments.
Notwithstanding the current impact of the Coronavirus pandemic on all international stock exchanges, we hope that completion of our objectives in 2020, while remaining cost conscious at all times, will provide support for the share price as the markets recognise the critical role future lithium producers such as Savannah will play in the developing EV revolution.
Having become sole owner of the Mina do Barroso project through the acquisition of the residual 25% stake last June, Savannah immediately expanded the project's footprint by 50% by executing its option to acquire the adjacent three block "Aldeia" mining lease application. With the project's resource expanded last May to 27Mt (+37% vs.
As we explained at the time of the fundraising last September, we concluded that further technical evaluation work was required in light of the challenges experienced in the commissioning of new spodumene operations in
The permitting process is underpinned by the project's EIA study. Hence, we will be shortly submitting this for review by APA (the
We are also in the process of planning and designing a series of programmes which, we hope, will see Savannah's lithium project become a significant support to the local economy and communities in the Boticas municipality in which we operate, as well as the wider region. Around the world, the mining industry has initiated, funded and operated a wide range of tailored programmes which have generated long lasting economic and social benefits for the communities that live alongside projects. This has always been Savannah's intention with Mina do Barroso, and we look forward to presenting our plans to the project stakeholders over the coming months.
Details of our more recent Corporate Social Responsibility ("CSR") programmes undertaken across all our projects can be found in the CSR section included in the Company's full Annual Report and Financial Statements.
For these benefits to be realised however, the project must become a commercial reality. This can only happen by having customers for our products. In that regard Savannah is making significant progress in positioning itself as
We are also receiving interest from major Portuguese industrial groups around forming strategic partnerships with Savannah on what is planned to be a sustainable mine development, which puts
The electric vehicle revolution is well underway, and 2020 will likely see EV penetration levels rise notably as the global market moves towards the expected c.10m sales in 2025 and c.30m in 2030 (source: Bloomberg NEF Electric Vehicle Outlook 2019). These numbers may seem staggering to some, but with growing consumer interest now adding to the impetus created by tightening emissions legislation, car companies globally are about to expand their EV model ranges significantly.
On
To sum up, notwithstanding undue disruption from Coronavirus, 2020 should bring the evaluation and planning phase of the Mina do Barroso project to a close. During the year we expect to have completed the DFS and, assuming the development decision is positive, to have entered into offtake agreements, and advanced our financing and our long-term community relationship plans. We look forward to continuing to develop our relationships with all stakeholders.
Our effort in maintaining an open dialogue and a good relationship with the Government of
While the review and approval period extended beyond our original expectations, the long-term impact on the project was minimal in our view. In the intervening period, the market dynamics within the titanium feedstock sector remained favourable for the development of new, large scale, long life sources of supply such as Mutamba.
Furthermore, a mining operation in this region of
Savannah will continue to work on the Mutamba project with Rio Tinto, focusing on the best way to draw value from the project for our stakeholders. The current task for Savannah is the Pre-Feasibility study on the project. Completion of that study would lift our ownership of the project from the current 20% to 35%.
We noted with sadness the passing of
While we haven't enjoyed the same licencing success to date in
During the year, work in the field was limited to ground programmes such as mapping with the emphasis placed firmly on cost control to reflect the lower priority now placed on these projects.
As discussed, Savannah's focus remains firmly on
Corporate Update
We were delighted to receive a
At the time of last year's annual report Savannah was in the process of finalising the acquisition of the minority 25% stake in Mina do Barroso to take sole ownership of the project. This was duly completed in
The deal has maximised our shareholders' exposure to one of the most important lithium projects in
A small issue of Savannah shares was also used in
Financial Overview
With its project evaluation programmes continuing throughout the year, Savannah is reporting a loss before and after tax of
Cash spent on exploration activity fell to
The Group finished the year with Cash and Cash Equivalents of
Hence, we were extremely pleased to raise this sum which is understood to have been the sixth largest fundraise by an AIM listed mining company in 2019. As in other recent placings, the cornerstone of the financing was our largest shareholder,
Corporate Social Responsibility ('CSR')
Following on from our maiden Corporate Social Responsibility ("CSR") section included in the Company's full Annual Report and Financial Statements last year, here we provide an update on our Health & Safety record and our continuing community engagement programmes across our projects.
Health & Safety
The Health & Safety of our staff, contractors and visitors remains a top priority for Savannah. One incident was reported and subsequently reviewed in 2019 (2018: 1 incident) across all our projects and offices. We are pleased to report the member of staff involved made a quick and full recovery and was able to return to work.
As we move nearer to a development decision point for the Mina do Barroso project, our CSR programmes are evolving as is our general engagement with all stakeholders in our project from those living in the villages nearby through to local administrators, government ministers and EU agencies.
On the ground, our Information Centre in Covas do Barroso village, which opened last April, continued to provide a fixed point where local people can meet with staff and receive information on the project. We also kept up our regular community newsletter correspondence (also available on our website), hosted community meetings, sponsored local events and made a donation to the local fire brigade, which is so vital in this area due to frequent forest fires.
From
As outlined in the Chairman's statement above, the submission of the project's EIA study will allow us to provide stakeholders with a fact-based analysis and a comprehensive outline of our project plan. To complement this, we expect to present comprehensive community programmes and the Benefit Sharing Plans that we intend to follow during the development and operating phase of the Mina do Barroso project. We also hope that the Portuguese language website we launched last year, www.minadobarroso.com has been an additional source of useful information.
Savannah was also delighted to become a sponsor to FST Lisboa, a team of engineering students from Instituto Técnico de
Savannah is looking forward to involving the local community and the wider Portuguese population in the Mina do Barroso project which could represent the country's first step into
Savannah continued to contribute to community and social programmes in the Inhambane province where the Mutamba JV project is located. 2019 was the final year of our initial 3-year partnership on community programmes with the
· Vocational training: 400 young people from the Inhambane province completed training in trades such as electrical maintenance, carpentry, plumbing and civil construction at the training centres in Inhambane and Jangamo which were funded by the partnership. Around 80% of the local youth trained to date have gained employment, and the electrical maintenance training programme curriculum that was initiated under this scheme is now being implemented at training centres across
· Value chain development: Small scale agriculture was a key pillar of the partnership with the focus on coconut and cassava production. 4,700 residents of Jangamo and Inharrime received coconut seedlings during the programme as part of the coconut palm reforestation programme. A coconut palm nursery with capacity for 20,000 seedlings was also set up during the project while a 'seeds for seedlings' exchange programme remains in place to ensure the reforestation project is sustained. The partnership also supported the formation of a cassava mill, managed by a newly formed Association which represents the 120 local small-scale farmers who have received training in cassava production. Overall, over 400 local small-scale farmers have seen a minimum 10% increase in income as a result of the training and support received from the partnership.
· Access to energy: 3,000 families have gained access to off grid solar systems through the partnership under a low cost 'Pay as you Go' model.
Following the success of the first phase of support, a new partnership with GIZ will be considered in 2020.
In addition, Savannah will also join with six other national and international groups including government agencies, NGOs and private sector entities in the new, five year, "IWAMAMBA" project. Through the project, the groups will share information and develop collaborative models for further community programmes in the Mutamba river basin. Savannah will contribute USD
With the initiation of the strategic review, work in the field on our projects in
Outlook
We will continue to monitor developments relating to the Coronavirus pandemic and will take the appropriate and proportionate actions to safeguard both our employees' and other stakeholders' well-being. Such actions may impact the speed of delivering on our objectives. However, at Mina do Barroso our focus remains firmly on completing the pre-development phase as soon as possible. This means lodging the EIA, finishing the DFS, obtaining the necessary licences and commercial agreements, and making preparations to secure the offers of finance required to build the project. Work on the PFS at Mutamba continues and whilst firm cost controls are in place in respect of the
My thanks go to all our staff. Their continuing efforts to progress our project portfolio in order to create value for shareholders and benefits for all our stakeholders is very much appreciated by myself and the Board. I would also like to express the Board's thanks to our many shareholders who have continued to support the company over the last year. We hope to repay your continuing support by growing Savannah into a valuable business based on responsible, sustainable mining operations which bring benefits to all stakeholders.
Chairman
Date:
Chief Executive's Report
Savannah experienced some challenges during 2019 but our company worked hard to meet these market and operational challenges and we continued to make progress with our projects. This has resulted in a number of milestones which should provide the basis for the further progress and value creation during the year ahead.
At Mina do Barroso we are now busy with the project's EIA, the DFS, discussions with potential commercial partners and financing groups, and finalising our proposals for social and economic programmes for the communities living close to the project. The commercial agreements we are working towards and the imminent submission of the EIA confirm the project's status as
Savannah is more than just the Mina do Barroso project, however, and the licence awards on the Mutamba mineral sands project after a thorough review period by the Mozambican authorities have changed the complexion of that project significantly. As a result, we are now increasing our work on the Mutamba Pre-Feasibility study.
Progress with the mine licence awards in
Mina do Barroso remains our flagship asset as its risk-reward profile continues to be the most attractive amongst our current portfolio. Despite the weakening of lithium prices in 2019 we believe the project's profile has been greatly enhanced over the past year by a number of factors including; a further increase in its lithium resource, the simplification of its ownership structure through Savannah's acquisition of the residual 25% stake, the addition of the adjacent Aldeia mining lease application ground; and the advanced nature of the discussions we are having with potential lithium and co-product customers/offtakers and other Portuguese strategic partners.
We believe that owing to the advanced nature of the offtake discussions our shareholders can take particular confidence that an offtake agreement with a significant and well positioned counterparty is within our grasp. From a wider market perspective, it also reiterates the view held by informed lithium consumers that the potential for supply shortages in the market exists in the medium term despite the inventory surplus which appeared last year. Furthermore, it also confirms the views of many, including the
I understand these long-term market trends were difficult to credit during 2019 when reduced subsidies on electric vehicles in
We believe the 2019 sales figures for the world's car market will bear this out with some analysis. While global car and light duty vehicle sales fell 4.4% to 90.3m (source:
At present forecasts appear to be for a further decline in overall light vehicles sales in 2020 (e.g.
Digging deeper into the global EV market shows that
Website EV-volumes.com reports European sales of plug in vehicles reached 590,000 in 2019, 44% higher than 2018 with the overall penetration rate rising to 3.4% vs. 2.1% for 2018. Furthermore, 2020 could see plug-in EV sales in
The advanced discussions we are in with offtakers is not Savannah's only commitment to the European lithium battery value chain. During the past year we have significantly strengthened our own ties with the
We have also become a project partner in two initiatives run by EIT RawMaterials, which has a mission to enable sustainable competitiveness of the European minerals, metals and materials sector along the value chain. The first, the Certification of Raw Materials ("CERA") project has the brief to produce a standardised certification scheme ensuring environmental, social and economic sustainability in extraction, processing, trading and manufacturing of all mineral raw materials. Savannah's Mina do Barroso project has been chosen as the pilot mining project for evaluation to achieve the CERA standard, and we believe meeting this rigorous EU standard should give the project significant credit with potential industrial customers and
The second project, "LiRef", is validating two conversion processes with the target to develop one robust and flexible process to transform spodumene concentrate into battery grade lithium chemical. If a common processing technology can be found it could be used in European-based spodumene conversion plants with the capacity to treat ores from multiple sources including Mina do Barroso.
Back at the project, our focus for 2019 was on progressing the EIA, the Mine Plan Study, which is another report required in the project licencing process, and DFS. Hence, following the intense resource delineation campaigns of 2017 and 2018, there was less drilling on the project in 2019 (69 holes for 5,887m taking the total to date to 335 holes for 31,407m). However, the company was still able to publish two resource upgrades with the second estimate in May representing a 37% increase over the
(*Cautionary Statement: The potential quantity and grade of the Additional Resource Targets is conceptual in nature, there has been insufficient prospecting work to estimate a mineral resource and it is uncertain if further prospecting will result in defining a mineral resource.)
As highlighted at the time of the fundraise last September, and based on the operating performances of new spodumene projects in
As we outlined in September, many of the DFS workstreams are at an advanced point, and the next task will be to re-evaluate what remains to be done once the EIA and the associated Mine Plan Study have been completed as much of the work prepared for those studies is relevant to the DFS.
In regard to the EIA, the submission will represent a huge effort on the part of Savannah's project team and consultants following a long period of data collection, interpretation, design and planning. We expect the consultation and approval process should take some six months during which time we plan a comprehensive programme of stakeholder engagement outlining and discussing specific areas of the EIA and our project plans.
To confirm, it is Savannah's intention to develop the project with the minimum of impact on the natural environment and local communities. We are also committed to making our operation as sustainable as feasibly possible to attach the greatest environmental benefit we can to the lithium concentrate we produce.
To this end, Savannah is looking to form strategic partnerships with some of the high quality service providers available within
We are also very pleased with the continued strong support the project enjoys from the Portuguese Government, which remains keen to develop an in-country lithium industry based on
We expect Mina do Barroso to dominate our news flow in the next 12 months and look forward to the much-anticipated mass market EV ramp up in
The final four months of 2019 and
The
We have long flagged the potential of the Mutamba project based on the scale of its resource, the commercial significance of the mineral sands sector to our JV partner, Rio Tinto and the positive findings of the 2017 Scoping Study. The investment case for the project continues to be further enhanced by the encouraging long-term outlook for underlying demand.
The market dynamics within the titanium feedstock have remained favourable for the development of new sources of supply such as Mutamba. Ilmenite is the dominant titanium mineral in the Mutamba deposit, and established
Mutamba's potential cannot be realised without the foundation of valid mining licences. The project now has these and given the risk perceived in the mining industry around 'licence to operate' these awards carry significant weight in our view. There remains much work to do in respect of making Mutamba an operating mine, beginning with the completion of a Pre-Feasibility Study, which would increase Savannah's stake in the project from 20% to 35%. We continue with our efforts on this front, but reiterate that our prime focus remains the Mina do Barroso lithium project with the majority of our finite cash reserves committed to moving that project forward.
I reiterate the condolences expressed by our Chairman to all our Omani stakeholders on the passing of His Majesty Sultan Qaboos bin Said Al Said in January.
It is expected by observers that
Hence it will not surprise our shareholders to know that there is little further to report at this stage in regard to final mining licence awards over the Mahab 4 and Maqail South copper projects (Block 5) since we announced in August that we had been advised by PAM that it intends to grant them. Savannah maintains its dialogue with PAM and other relevant government departments with only confirmation of the licence fee structure and relevant payment required for the licences to be issued. During the year, work in the field was limited to 'surface' programmes such as mapping, with the emphasis placed firmly on cost control to reflect the lower priority now placed on these projects.
As discussed, Savannah's focus remains on
Summary
My thanks go to Savannah's staff who have demonstrated enormous commitment during 2019 in dealing with the challenging setting.
We continue to welcome these challenges believing that the projects which Savannah manages can bring benefits to all our stakeholders, and in the case of Mina do Barroso play an important role in
Chief Executive Officer
Date:
Financial Results
Consolidated Statement of Comprehensive Income
for the Year Ended 31 December 2019
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2019 £ |
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2018 £ |
|
|||
|
|
|
|
|
||||
CONTINUING OPERATIONS |
|
|
|
|
||||
Revenue |
|
- |
|
- |
||||
Other Income |
|
35,325 |
|
- |
||||
Administrative Expenses |
|
(3,861,344) |
|
(3,258,458) |
||||
Impairment of Intangible Assets |
|
- |
|
(140,024) |
||||
OPERATING LOSS |
|
(3,826,019) |
|
(3,398,482) |
||||
Finance Income |
|
25,621 |
|
17,321 |
||||
Finance Costs |
|
(1,528) |
|
- |
||||
|
|
|
|
|
||||
LOSS BEFORE AND AFTER TAX ATTRIBUTABLE TO EQUITY OWNERS OF THE PARENT |
|
(3,801,926) |
|
(3,381,161) |
||||
|
|
|
|
|
||||
OTHER COMPREHENSIVE INCOME |
|
|
|
|
||||
Items that will not be reclassified to profit or loss: |
|
|
|
|
||||
Net change in Fair Value Through Other Comprehensive Income of Equity Investments |
|
2,496 |
|
(73,345) |
||||
|
|
|
|
|
||||
Items that will or may be reclassified to profit or loss: |
|
|
|
|
||||
Exchange Gains / (Losses) arising on translation of foreign operations |
|
(609,228) |
|
384,248 |
||||
|
|
|
|
|
||||
OTHER COMPREHENSIVE INCOME FOR THE YEAR |
|
(606,732) |
|
310,903 |
||||
|
|
|
|
|
||||
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
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|
|
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||||
ATTRIBUTABLE TO EQUITY OWNERS OF THE PARENT |
|
(4,408,658) |
|
(3,070,258) |
||||
|
|
|
|
|
||||
Loss per share attributable to equity owners of the parent expressed in pence per share: Basic and diluted From Operations |
|
(0.36) |
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|
||||
(0.44) |
||||||||
|
|
|
|
|
||||
Consolidated Statement of Financial Position
as at 31 December 2019
|
|
2019 £ |
|
2018 £ |
ASSETS |
|
|
|
|
NON-CURRENT ASSETS |
|
|
|
|
Intangible Assets |
|
21,068,376 |
|
17,413,168 |
Right-of-Use Assets |
|
37,785 |
|
- |
Other Intangible Assets |
|
10,804 |
|
342,881 |
Property, Plant and Equipment |
|
1,337,229 |
|
1,437,068 |
Other Non-Current Assets |
|
248,275 |
|
253,188 |
Bank Deposits |
|
742,363 |
|
- |
|
|
|
|
|
TOTAL NON-CURRENT ASSETS |
|
23,444,832 |
|
19,446,305 |
|
|
|
|
|
CURRENT ASSETS |
|
|
|
|
Investments |
|
36,762 |
|
18,007 |
Trade and Other Receivables |
|
285,699 |
|
330,774 |
Other Current Assets |
|
19,171 |
|
223,733 |
Cash and Cash Equivalents |
|
3,484,781 |
|
7,715,435 |
|
|
|
|
|
TOTAL CURRENT ASSETS |
|
3,826,413 |
|
8,287,949 |
|
|
|
|
|
TOTAL ASSETS |
|
27,271,245 |
|
27,734,254 |
|
|
|
|
|
EQUITY AND LIABILITIES |
|
|
|
|
SHAREHOLDERS' EQUITY |
|
|
|
|
Share Capital |
|
12,974,598 |
|
8,814,518 |
Share Premium |
|
33,511,787 |
|
31,060,554 |
Merger Reserve |
|
6,683,000 |
|
- |
Foreign Currency Reserve |
|
(30,257) |
|
579,126 |
Warrant Reserve |
|
975,679 |
|
1,000,221 |
Share Based Payment Reserve |
|
410,121 |
|
508,051 |
FVTOCI Reserve |
|
(43,439) |
|
(58,737) |
Retained Earnings |
|
(28,163,712) |
|
(16,485,626) |
|
|
|
|
|
TOTAL EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT |
|
26,317,777 |
|
25,418,107 |
|
|
|
|
|
LIABILITIES |
|
|
|
|
NON-CURRENT LIABILITIES |
|
|
|
|
Loans and Borrowings |
|
- |
|
25,813 |
Lease Liabilities |
|
12,059 |
|
- |
|
|
|
|
|
TOTAL NON-CURRENT LIABILITIES |
|
12,059 |
|
25,813 |
|
|
|
|
|
CURRENT LIABILITIES |
|
|
|
|
Loans and Borrowings |
|
- |
|
16,895 |
Lease Liabilities |
|
18,990 |
|
- |
Trade and Other Payables |
|
922,419 |
|
2,273,439 |
|
|
|
|
|
TOTAL CURRENT LIABILITIES |
|
941,409 |
|
2,290,334 |
|
|
|
|
|
TOTAL LIABILITIES |
|
953,468 |
|
2,316,147 |
|
|
|
|
|
TOTAL EQUITY AND LIABILITIES |
|
27,271,245 |
|
27,734,254 |
Company Statement of Financial Position
as at 31 December 2019
|
|
2019 £ |
|
2018 £ |
ASSETS |
|
|
|
|
NON-CURRENT ASSETS |
|
|
|
|
Investments in Subsidiaries |
|
894,993 |
|
458,667 |
Other Intangible Asset |
|
5,948 |
|
333,353 |
Other Receivables |
|
33,265,297 |
|
20,844,330 |
Other Non-Current Assets |
|
41,068 |
|
36,800 |
|
|
|
|
|
TOTAL NON-CURRENT ASSETS |
|
34,207,306 |
|
21,673,150 |
|
|
|
|
|
CURRENT ASSETS |
|
|
|
|
Investments |
|
33,935 |
|
17,225 |
Trade and Other Receivables |
|
70,338 |
|
130,438 |
Other Current Assets |
|
- |
|
202,180 |
Cash and Cash Equivalents |
|
3,277,943 |
|
7,368,469 |
|
|
|
|
|
TOTAL CURRENT ASSETS |
|
3,382,216 |
|
7,718,312 |
|
|
|
|
|
TOTAL ASSETS |
|
37,589,522 |
|
29,391,462 |
|
|
|
|
|
EQUITY AND LIABILITIES SHAREHOLDERS' EQUITY |
|
|
|
|
Share Capital |
|
12,974,598 |
|
8,814,518 |
Share Premium |
|
33,511,787 |
|
31,060,554 |
Merger Reserve |
|
6,683,000 |
|
- |
Warrant Reserve |
|
975,679 |
|
1,000,221 |
Share Based Payment Reserve |
|
410,121 |
|
508,051 |
FVTOCI Reserve |
|
(43,439) |
|
(58,737) |
Retained Earnings |
|
(17,341,234) |
|
(12,883,510) |
|
|
|
|
|
TOTAL EQUITY |
|
37,170,512 |
|
28,441,097 |
|
|
|
|
|
LIABILITIES CURRENT LIABILITIES |
|
|
|
|
Trade and Other Payables |
|
419,010 |
|
950,365 |
|
|
|
|
|
TOTAL LIABILITIES |
|
419,010 |
|
950,365 |
|
|
|
|
|
TOTAL EQUITY AND LIABILITIES |
|
37,589,522 |
|
29,391,462 |
|
|
|
|
|
Consolidated Statement of Changes in Equity
for the Year Ended 31 December 2019
|
Share Capital |
Share Premium |
Merger Reserve |
Foreign Currency Reserve |
Warrant Reserve |
Share Based Payment Reserve |
FVTOCI Reserve |
Retained Earnings |
Total Equity |
|
||||||||
|
£ |
£ |
£ |
£ |
£ |
£ |
£ |
£ |
£ |
|
||||||||
At 1 January 2018 |
6,358,504 |
18,105,108 |
- |
194,878 |
1,405,958 |
691,194 |
- |
(13,612,758) |
13,142,884 |
|
||||||||
Loss for the year |
- |
- |
- |
- |
- |
- |
- |
(3,381,161) |
(3,381,161) |
|
||||||||
Other Comprehensive Income |
- |
- |
- |
384,248 |
- |
- |
(58,737) |
(14,608) |
310,903 |
|
||||||||
Total Comprehensive Income for the year |
- |
- |
- |
384,248 |
- |
- |
(58,737) |
(3,395,769) |
(3,070,258) |
|
||||||||
Issue of share capital (net of expenses) |
2,056,014 |
12,967,604 |
- |
- |
- |
- |
- |
- |
15,023,618 |
|
||||||||
Contingent consideration |
- |
- |
- |
- |
- |
283,283 |
- |
- |
283,283 |
|
||||||||
Contingent consideration shares issued |
400,000 |
- |
- |
- |
- |
(283,283) |
- |
(116,717) |
- |
|
||||||||
Share based payment charges |
- |
- |
- |
- |
- |
38,580 |
- |
- |
38,580 |
|
||||||||
Exercised options |
- |
- |
- |
- |
- |
(202,521) |
- |
202,521 |
- |
|
||||||||
Lapse of options |
- |
- |
- |
- |
- |
(19,202) |
- |
19,202 |
- |
|
||||||||
Issue of warrants |
- |
(12,158) |
- |
- |
12,158 |
- |
- |
- |
- |
|
||||||||
Exercised warrants |
- |
- |
- |
- |
(326,755) |
- |
- |
326,755 |
- |
|
||||||||
Lapse of warrants |
- |
- |
- |
- |
(91,140) |
- |
- |
91,140 |
- |
|
||||||||
At 31 December 2018 |
8,814,518 |
31,060,554 |
- |
579,126 |
1,000,221 |
508,051 |
(58,737) |
(16,485,626) |
25,418,107 |
|
||||||||
Loss for the year |
- |
- |
- |
- |
- |
- |
- |
(3,801,926) |
(3,801,926) |
|
||||||||
Other Comprehensive Income |
- |
- |
- |
(609,383) |
- |
- |
15,298 |
(12,802) |
(606,887) |
|
||||||||
Total Comprehensive Income for the year |
- |
- |
- |
(609,383) |
- |
- |
15,298 |
(3,814,728) |
(4,408,813) |
|
||||||||
Issue of share capital (net of expenses) |
2,500,000 |
2,326,400 |
- |
- |
- |
- |
- |
- |
4,826,400 |
|
||||||||
Consideration for acquisition of non-controlling interest |
1,630,000 |
- |
6,683,000 |
- |
- |
- |
- |
(8,019,000) |
294,000 |
|
||||||||
Consideration for settlement deferred consideration |
30,080 |
124,833 |
- |
- |
- |
- |
- |
- |
154,913 |
|
||||||||
Share based payment charges |
- |
- |
- |
- |
- |
33,170 |
- |
- |
33,170 |
|
||||||||
Lapse of options |
- |
- |
- |
- |
- |
(131,100) |
- |
131,100 |
- |
|
||||||||
Lapse of warrants |
- |
- |
- |
- |
(24,542) |
- |
- |
24,542 |
- |
|
||||||||
At 31 December 2019 |
12,974,598 |
33,511,787 |
6,683,000 |
(30,257) |
975,679 |
410,121 |
(43,439) |
(28,163,712) |
26,317,777 |
|||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||
The following describes the nature and purpose of each reserve within owners' equity:
Reserve |
Description and purpose |
Share Capital |
Amounts subscribed for share capital at nominal value. |
Share Premium |
Amounts subscribed for share capital in excess of nominal value less costs of fundraising. |
Merger Reserve |
Amounts subscribed for share capital in excess of nominal value in respect of the consideration paid in an acquisition arrangement, when the issuing company takes its interest in another company from below 90% to 90% or above equity holding. |
Foreign Currency Reserve |
Gains/losses arising on retranslating the net assets of group operations into Pound Sterling. |
Warrant Reserve |
Fair value of the warrants issued. |
Share Based Payment Reserve |
Represents the accumulated balance of share based payment charges recognised in respect of asset acquired and share options granted by |
FVTOCI Reserve |
Cumulative changes in fair value of equity investments classified at fair value through other comprehensive income (FVTOCI). |
Retained Earnings |
Cumulative net gains and losses recognised in the Consolidated Statement of Comprehensive Income and other transactions recognised directly in Retained Earnings. |
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2019
|
Share Capital |
Share Premium |
Merger Reserve |
Warrant Reserve |
Share Based Payment Reserve |
FVTOCI Reserve |
Retained Earnings |
Total Equity |
|
£ |
£ |
£ |
£ |
£ |
£ |
£ |
£ |
At 1 January 2018 |
6,358,504 |
18,105,108 |
- |
1,405,958 |
691,194 |
- |
(11,058,857) |
15,501,907 |
Loss for the year |
- |
- |
- |
- |
- |
- |
(2,449,663) |
(2,449,663) |
Other Comprehensive Income |
- |
- |
- |
- |
- |
(58,737) |
(14,608) |
(73,345) |
Total Comprehensive Income for the year |
- |
- |
- |
- |
- |
(58,737) |
(2,464,271) |
(2,523,008) |
Issue of share capital (net of expenses) |
2,056,014 |
12,967,604 |
- |
- |
- |
- |
- |
15,023,618 |
Shares issued |
400,000 |
- |
- |
- |
- |
- |
- |
400,000 |
Share based payment charges |
- |
- |
- |
- |
38,580 |
- |
- |
38,580 |
Exercised options |
- |
- |
- |
- |
(202,521) |
- |
202,521 |
- |
Lapse of options |
- |
- |
- |
- |
(19,202) |
- |
19,202 |
- |
Issue of warrants |
- |
(12,158) |
- |
12,158 |
- |
- |
- |
- |
Exercised warrants |
- |
- |
- |
(326,755) |
- |
- |
326,755 |
- |
Lapse of warrants |
- |
- |
- |
(91,140) |
- |
- |
91,140 |
- |
At 31 December 2018 |
8,814,518 |
31,060,554 |
- |
1,000,221 |
508,051 |
(58,737) |
(12,883,510) |
28,441,097 |
Loss for the year |
- |
- |
- |
- |
- |
- |
(4,600,564) |
(4,600,564) |
Other Comprehensive Income |
- |
- |
- |
- |
- |
15,298 |
(12,802) |
2,496 |
Total Comprehensive Income for the year |
- |
- |
- |
- |
- |
15,298 |
(4,613,366) |
(4,598,068) |
Issue of share capital (net of expenses) |
2,500,000 |
2,326,400 |
- |
- |
- |
- |
- |
4,826,400 |
Consideration for acquisition of non-controlling interest |
1,630,000 |
- |
6,683,000 |
- |
- |
- |
- |
8,313,000 |
Consideration for settlement deferred consideration |
30,080 |
124,833 |
- |
- |
- |
- |
- |
154,913 |
Share based payment charges |
- |
- |
- |
- |
33,170 |
- |
- |
33,170 |
Lapse of options |
- |
- |
- |
- |
(131,100) |
- |
131,100 |
- |
Lapse of warrants |
- |
- |
- |
(24,542) |
- |
- |
24,542 |
- |
At 31 December 2019 |
12,974,598 |
33,511,787 |
6,683,000 |
975,679 |
410,121 |
(43,439) |
(17,341,234) |
37,170,512 |
The following describes the nature and purpose of each reserve within owners' equity:
Reserve |
Description and purpose |
Share Capital |
Amounts subscribed for share capital at nominal value. |
Share Premium |
Amounts subscribed for share capital in excess of nominal value less costs of fundraising. |
Merger Reserve |
Amounts subscribed for share capital in excess of nominal value in respect of the consideration paid in an acquisition arrangement, when the issuing company takes its interest in another company from below 90% to 90% or above equity holding. |
Warrant Reserve |
Fair value of the warrants issued. |
Share Based Payment Reserve |
Represents the accumulated balance of share based payment charges recognised in respect of asset acquired and share options granted by |
FVTOCI Reserve |
Cumulative changes in fair value of equity investments classified at fair value through other comprehensive income (FVTOCI). |
Retained Earnings |
Cumulative net gains and losses recognised in the Consolidated Statement of Comprehensive Income and other transactions recognised directly in Retained Earnings. |
Consolidated Statement of Cash Flows
for the Year Ended 31 December 2019
|
|
|
2019 £ |
|
2018 £ |
|
Cash flows used in operating activities |
|
|
|
|
|
|
Loss for the year |
|
|
(3,801,926) |
|
(3,381,162) |
|
Depreciation and amortisation charges |
|
|
40,872 |
|
31,194 |
|
Impairment of assets |
|
|
- |
|
140,024 |
|
Share based payment charge |
|
|
33,170 |
|
38,580 |
|
Finance income |
|
|
(25,621) |
|
(17,321) |
|
Finance expense |
|
|
1,528 |
|
- |
|
Exchange losses / (gains) |
|
|
196,229 |
|
(54,076) |
|
Cash flow from operating activities before changes in working capital |
(3,555,748) |
|
(3,242,761) |
|||
Decrease/(Increase) in trade and other receivables |
|
|
254,550 |
|
(179,376) |
|
(Decrease)/Increase in trade and other payables |
|
|
(589,705) |
|
562,925 |
|
|
|
|
|
|
|
|
Net cash used in operating activities |
|
|
(3,890,903) |
|
(2,859,212) |
|
Cash flow used in investing activities |
|
|
|
|
|
|
Purchase of intangible exploration assets |
|
|
(4,169,238) |
|
(6,317,118) |
|
Purchase of other intangible assets |
|
|
(1,278) |
|
(131,173) |
|
Purchase of tangible fixed assets |
|
|
(21,296) |
|
(328,768) |
|
Purchase of investments |
|
|
(28,371) |
|
(695) |
|
Proceeds from sale of investments |
|
|
12,112 |
|
104,461 |
|
Bank deposits for mining licences |
|
|
(742,363) |
|
- |
|
Guarantees for acquisition of intangible exploration assets |
|
|
- |
|
(202,180) |
|
Interest received |
|
|
25,621 |
|
17,321 |
|
Net cash used in investing activities |
|
|
(4,924,813) |
|
(6,858,152) |
|
|
|
|
|
|
|
|
Cash flow from financing activities |
|
|
|
|
|
|
Proceeds from issues of ordinary shares (net of expenses) |
|
|
4,826,400 |
|
14,986,546 |
|
Principal paid on lease liabilities |
|
|
(20,488) |
|
- |
|
Interest paid on lease liabilities |
|
|
(1,528) |
|
- |
|
Net cash from financing activities |
|
|
4,804,384 |
|
14,986,546 |
|
|
|
|
|
|
|
|
(Decrease)/Increase in cash and cash equivalents |
|
|
(4,011,332) |
|
5,269,182 |
|
|
|
|
|
|
|
|
Cash and cash equivalents at beginning of year |
|
|
7,715,435 |
|
2,455,968 |
|
Exchange losses on cash and cash equivalents |
|
|
(219,322) |
|
(9,715) |
|
|
|
|
|
|
|
|
Cash and cash equivalents at end of year |
|
|
3,484,781 |
|
7,715,435 |
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2019
|
|
|
2019 £ |
2018 £ |
Cash flows used in operating activities |
|
|
|
|
Loss for the year |
|
|
(4,600,564) |
(2,449,736) |
Impairment of financial assets |
|
|
1,035,627 |
1,325,790 |
Share based payment reserve charge |
|
|
33,170 |
38,580 |
Finance income |
|
|
(25,514) |
(17,321) |
Exchange losses / (gains) |
|
|
1,718,168 |
(628,473) |
Cash flow from operating activities before changes in working capital |
(1,839,113) |
(1,731,160) |
||
Decrease/(Increase) in trade and other receivables |
|
|
182,233 |
(103,289) |
(Decrease)/Increase in trade and other payables |
|
|
(512,038) |
477,736 |
|
|
|
|
|
Net cash used in operating activities |
|
|
(2,168,918) |
(1,356,713) |
Cash flow used in investing activities |
|
|
|
|
Investment in subsidiaries |
|
|
(27,195) |
(115,784) |
Loans to subsidiaries |
|
|
(6,512,623) |
(8,049,798) |
Purchase of other intangible assets |
|
|
- |
(131,173) |
Guarantees for acquisition of intangible exploration assets |
|
|
- |
(202,180) |
Purchase of investments |
|
|
(26,326) |
- |
Proceeds from sale of investments |
|
|
12,112 |
104,461 |
Interest received |
|
|
25,514 |
17,321 |
|
|
|
|
|
Net cash used in investing activities |
|
|
(6,528,518) |
(8,377,153) |
|
|
|
|
|
Cash flow from financing activities |
|
|
|
|
Proceeds from issues of ordinary shares (net of expenses) |
|
|
4,826,400 |
14,986,546 |
|
|
|
|
|
Net cash from financing activities |
|
|
4,826,400 |
14,986,546 |
|
|
|
|
|
(Decrease)/Increase in cash and cash equivalents |
|
|
(3,871,036) |
5,252,680 |
|
|
|
|
|
Cash and cash equivalents at beginning of year |
|
|
7,368,469 |
2,125,504 |
Exchange losses on cash and cash equivalents |
|
|
(219,490) |
(9,715) |
Cash and cash equivalents at end of year |
|
|
3,277,943 |
7,368,469 |
|
|
|
|
|
** ENDS **
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