Results for the Period Ended 30 September 2020

RNS Number : 1282D
Beowulf Mining PLC
26 October 2020
 

 

 

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations ("MAR") (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

26 October 2020

Beowulf Mining plc

("Beowulf" or the "Company")

Unaudited Financial Results for the Period Ended 30 September 2020

 

Beowulf (AIM: BEM; Spotlight: BEO), the mineral exploration and development company, announces its unaudited financial results for the three months ended 30 September 2020.

 

Overview of Activities in the Quarter

· On 6 July 2020, the Company announced results from grab sampling completed across the Majdan Peak gold target at Vardar Mineral's ("Vardar") Mitrovica licence in Northern Kosovo. 

 

· The Company announced, on 14 July 2020, that plans to drill at Kallak, scheduled for Autumn 2020, had been postponed due to COVID-19, until such time that resources can be fully mobilised and deployed safely.

 

· On 13 August 2020, the Company announced that it had secured loan financing from Nordic investors of SEK 12 million (approximately £1.0 million) before expenses. The Company also invested a further £300,000 in Vardar, increasing its ownership from 42.2 per cent to 46.1 per cent.

Funds have been used to restart exploration works in Kosovo, including geophysical surveys with the objective of defining targets for drilling. 

· The findings of an expert market assessment by Dr Bo Arvidson were announced on 17 September 2020, which investigated the market potential of future products from the Kallak North deposit, based on the results of laboratory and pilot plant test work conducted to date.

 

Testwork on Kallak ore has produced an exceptionally high-grade magnetite concentrate at 71.5 per cent iron ("Fe") content with minimal detrimental components. This would make Kallak the market leading high-grade product among known current and planned future producers.

 

· The Board approved an extension to the exercise period of the share options granted to Kurt Budge, CEO, of over 9,000,000 ordinary shares of the Company now exercisable by 17 July 2021.

 

· At the Company's AGM, held on 10 September 2020, all resolutions were passed.

 

 

 

Post Period

· On 9 October 2020, Beowulf informed the market that the Constitutional Committee in Sweden would be meeting on 13 October 2020, to review the Swedish Government's handling of the Company's application for an Exploitation Concession for Kallak North.

 

· On 16 October 2020, Beowulf CEO, Kurt Budge, presented at ProHearings Capital Markets Day. An updated corporate presentation is available on the website: https://beowulfmining.com/wp-content/uploads/2020/10/20201015-Beowulf-Mining-ProHearings-Presentation.pdf  

 

· On 23 October 2020, the Company announced results from an Induced Polarisation ("IP") and resistivity survey undertaken by Vardar at its Wolf Mountain lead-zinc-silver ("Pb-Zn-Ag") target, situated within the Mitrovica licence.

 

The survey defined h ighly anomalous IP chargeability zones, considered high priority targets for drill testing, and anomalies follow established regional structural trends suggesting they may be representative of high-grade Pb-Zn-Ag feeder structures.

 

 

 

Kurt Budge, Chief Executive Officer of Beowulf, commented:

"There were several highlights of the quarter for me, completing the financing in August, in which we were well-supported by Nordic investors, seeing the Vardar team get 'back to business' in Kosovo, where we are already seeing positive results at Wolf Mountain that indicate the potential for high-grade lead-zinc feeder structures , and receiving the expert assessment of the 'market leading' credentials of Kallak's magnetite concentrate.

"In Sweden, the Company has engaged new advisors in Stockholm to support our efforts in seeking approval of our application for an Exploitation Concession for Kallak North and I am pleased with the effective work that's been done to date.

"The Company continues to assess the possible resource upside at Kallak.  While disappointed that we were forced to postpone drilling this Autumn, as we were unable to get personnel to site under COVID-19 travel restrictions, we have been reviewing historic exploration data, as we evaluate the potential 'life of mine'.  A continuation from Kallak North to Kallak South could see a mine in production for 25 years, or more if additional resource at Parkijaure nr 6 is defined.

"I visited Jokkmokk a few weeks ago and discussed with stakeholders a vision for the town in 2050, which taps into Swedish mining innovation, excitement around fossil-free enterprise, sustainable development and the Circular Economy.  The timeline would see a production start at Kallak within the next five years and 25 years of mining. 

"Kallak represents the cornerstone of the foundation on which Jokkmokk's future is built and with connections to Norrbotten's renewable power, railways and the Port of Luleå, a sustainable mine will invigorate the region's basic industry and economy.

"All in all, we are making excellent progress in all areas of our business.  Kallak is positioned as a future regional supplier to Sweden's nascent fossil-free streel making industry, a key part of Sweden's 'Green Transition' (grön omställning).  Fennoscandian Resources has its part to play in the battery sector and the drive for electrification and Vardar shows potential as a new source of metals supply in Europe.

"I look forward to providing further updates to the markets in due course."

Kurt Budge, CEO, has conducted an interview with BRR Media.  The interview can be seen using the link below:

 

  https://www.brrmedia.co.uk/broadcasts/5f92d383c4d0076f2b944cac/beowulf-mining-plc-ceo-update

 

Operational

Kosovo

· On 6 July 2020, the Company announced results from grab sampling completed across the Majdan Peak gold target at Vardar's Mitrovica licence in Northern Kosovo. 

 

42 samples have assayed in excess of 0.1 gramme per tonne ("g/t") gold out of a total of 96 samples collected from available outcrop and subcrop.

Anomalous results correlate well with gold in soils and alteration intensity and confirm the significant scale of the gold anomaly, an area 1400 x 700 metres, which remains open to the east.

Sample results over 1 g/t gold include: 7.2 g/t; 4.6 g/t; 2.8 g/t; 2.0 g/t; 1.5 g/t; 1.3 g/t; 1.3 g/t; and 1.1 g/t.

In addition to the primary gold target, a new multi-element anomaly has been delineated to the south of the main peak. This anomaly correlates well with anomalous rock grab samples (including individual samples with 0.79 g/t gold), with galena (lead sulphide) veins apparent in some of the outcropping gossans.

The link below is a plan showing soil sample gold results, with rock sample gold results overlain and multi-element anomalies delineated.  All rock samples with assays > 0.1 g/t have been labelled. Results highlight the spatial extent of the Majdan Peak gold target.

https://beowulfmining.com/wp-content/uploads/2020/07/Madjan-Peak-rock-sample-results.jpg  

· On 13 August 2020, the Company announced that it had invested a further £300,000 in Vardar, increasing its ownership from 42.2 per cent to 46.1 per cent.

Funds have been used to restart exploration works in Kosovo, with geophysical surveys across the Mitrovica and Viti licences, with the objective of defining drill targets.  

· On 23 October 2020, Beowulf announced results from an Induced Polarisation ("IP") and resistivity survey undertaken by Vardar at its Wolf Mountain lead-zinc-silver ("Pb-Zn-Ag") target, situated within the Mitrovica licence, located in northern Kosovo.  Highlights included:

Highly anomalous IP chargeability zones, considered high priority targets for drill testing, have been defined beneath areas of laterally extensive Pb-Zn gossans and hydrothermal alteration.

The IP anomalies are located below, often straddling, the contact between younger Oligo-Miocene ("O-M") volcanoclastic rocks and ultramafic ("UM") basement, in agreement with mapped and drill tested mineralisation, adding further support for a source of the observed mineralisation.

Importantly, anomalies follow established regional structural trends suggesting they may be representative of high-grade Pb-Zn-Ag feeder structures, often a characteristic of the deposit type.

Resistivity results correlate very well with geological mapping, drilling and trenching, delineating the lateral and vertical extent of the low resistivity volcanoclastic units over the higher resistivity UM basement.

Vardar is now planning a follow-up drilling programme to test the main anomalies for high-grade mineralisation.

 

Sweden

· The findings of an expert market assessment by Dr. Bo Arvidson, were announced on 17 September 2020, which investigated the market potential of future products from the Kallak North deposit, based on the results of laboratory and pilot plant test work conducted to date. Highlights include:

 

Testwork on Kallak ore has produced an exceptionally high-grade magnetite concentrate at 71.5 per cent iron ("Fe") content with minimal detrimental components.

This would make Kallak the market leading high-grade product among known current and planned future producers.

The next best magnetite product is LKAB's (the state-owned Swedish iron ore company), which produces magnetite fines ("MAF") with a target specification of  70.7 per cent Fe and was regarded as unique, until now, due to its exceptionally high iron content.

Kallak magnetite concentrate would reduce the carbon footprint of traditional steel manufacturing, improve energy efficiency in any downstream process and reduce waste.  Magnetite has inherent energy content, which ultimately results in lower energy demand for steel manufacturing when compared to current common practice.

o Globally, the feedstock for steelmaking is 80 per cent hematite and 20 per cent magnetite.  The demand for high-quality feedstock and therefore magnetite should increase as producers look to protect the environment by improving energy efficiency, minimizing waste and the impact of waste disposal.

 

Financials

· The consolidated loss remaining largely unchanged in quarter ended 30 September at £311,899 (Q3 2019:  loss of £312,986). The decrease is partly attributable to no share-based payment charge relating to employees and Directors options for the quarter compared to £26,566 incurred in the previous quarter. This decrease is offset by a finance charge of £40,179 associated with the Bridging loan secured in the quarter.

 

· Consolidated basic and diluted loss per share for the quarter ended 30 September 2020 was 0.04 pence (Q3 2019: loss of 0.04 pence).

 

· £1,207,384 in cash held at the period end (Q3 2019: £907,527).

 

· The cumulative translation losses held in equity decreased by £39,801 in the quarter ended 30 September 2020 to £636,664 (31 December 2019: £1,291,068). Much of the Company's exploration costs are in Swedish Krona and Euro which has strengthened against the pound since 31 December 2019.

 

· As of 30 September 2020, there were 407,758,129 Swedish Depository Receipts representing 67.71 per cent of the issued share capital of the Company. The remaining issued share capital of the Company is held in the UK.

 

 

Enquiries:

Beowulf Mining plc

 

Kurt Budge, Chief Executive Officer

Tel: +44 (0) 20 3771 6993

SP Angel
(Nominated Adviser & Broker)

 

Ewan Leggat / Soltan Tagiev

Tel: +44 (0) 20 3470 0470

Blytheweigh 

 

Tim Blythe / Megan Ray 

Tel: +44 (0) 20 7138 3204

 

Cautionary Statement

Statements and assumptions made in this document with respect to the Company's current plans, estimates, strategies and beliefs, and other statements that are not historical facts, are forward-looking statements about the future performance of Beowulf. Forward-looking statements include, but are not limited to, those using words such as "may", "might", "seeks", "expects", "anticipates", "estimates", "believes", "projects", "plans", strategy", "forecast" and similar expressions. These statements reflect management's expectations and assumptions in light of currently available information. They are subject to a number of risks and uncertainties, including, but not limited to , (i) changes in the economic, regulatory and political environments in the countries where Beowulf operates; (ii) changes relating to the geological information available in respect of the various projects undertaken; (iii) Beowulf's continued ability to secure enough financing to carry on its operations as a going concern; (iv) the success of its potential joint ventures and alliances, if any; (v) metal prices, particularly as regards iron ore. In the light of the many risks and uncertainties surrounding any mineral project at an early stage of its development, the actual results could differ materially from those presented and forecast in this document. Beowulf assumes no unconditional obligation to immediately update any such statements and/or forecast.

 

 

 

BEOWULF MINING PLC

CONDENSED CONSOLIDATED INCOME STATEMENT

 

FOR THE NINE MONTHS TO 30 SEPTEMBER 2020

 

 

 

Notes

(Unaudited)

3 months ended 30 September

 2020

 

 

£

(Unaudited)

3 months ended 30

September

2019

 

 

£

(Unaudited)

9 months ended 30

September

2020

 

 

£

(Unaudited)

9 months ended 30

September

2019

 

 

£

(Audited) 

12 months ended 31 December 2019

 

 

£

Continuing operations

 

 

 

 

 

 

Other income

 

-

-

-

-

-

 

 

 

 

 

 

 

Administrative expenses

 

(252,520)

(286,952)

(655,674)

(737,082)

(904,666)

Impairment of exploration costs

 

(18,650)

-

(18,650)

-

(10,720)

Share based payment expense

 

-

(26,566)

-

(93,154)

(119,720)

Gain on step acquisition

 

-

-

-

563,431

563,431

 

 

 

 

 

 

 

Operating loss

 

(271,170)

(313,518)

(674,324)

(266,805)

(471,675)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Finance costs

 

(40,179)

-

(40,340)

-

(410)

Finance income

 

8

532

591

5,715

6,298

Grant (expense)/income

 

(558)

-

7,699

-

37,080

Loss before and after taxation

 

 

(311,899)

(312,986)

(706,374)

(261,090)

(428,707)

 

 

 

 

 

 

 

Loss attributable to:

 

 

 

 

 

 

Owners of the parent

 

(269,869)

(255,922)

(623,064)

(153,976)

(267,000)

Non-controlling interests

 

(42,030)

(57,064)

(83,310)

(107,114)

(161,707)

 

 

 

 

 

 

 

 

 

 

(311,899)

(312,986)

(706,374)

(261,090)

(428,707)

 

 

 

 

 

 

 

Loss per share attributable to the owners of the parent:

 

 

 

 

 

 

Basic and diluted (pence)   

3

(0.04)

(0.04)

(0.10)

(0.03)

(0.04)

 

 

BEOWULF MINING PLC

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE LOSS

FOR THE NINE MONTHS TO 30 SEPTEMBER 2020

 

 

 

(Unaudited)

3 months ended 30 September

 2020

 

 

£

(Unaudited)

3 months ended 30

September

2019

 

 

£

(Unaudited)

9 months ended 30

September

2020

 

 

£

(Unaudited)

9 months ended 30

September

2019

 

 

£

(Audited) 

12 months ended 31 December 2019

 

 

£

 

 

 

 

 

 

Loss for the period / year

(311,899)

(312,986)

(706,374)

(261,090)

(428,707)

Other comprehensive income

 

 

 

 

 

Items that may be reclassified subsequently to profit or loss:

 

 

 

 

 

 

 

 

 

 

 

Exchange gains/(losses) arising on translation of foreign operations

39,801

(203,018)

660,160

(515,349)

(794,299)

Total comprehensive loss

(272,098)

(516,004)

(46,214)

(776,439)

(1,223,006)

 

 

 

 

 

 

Total comprehensive income loss attributable to:

 

 

 

 

 

Owners of the parent

(207,543)

(466,691)

31,339

(661,989)

(1,037,811)

Non-controlling interests

(64,555)

(49,313)

(77,553)

(114,450)

(185,195)

 

(272,098)

(516,004)

(46,214)

(776,439)

(1,223,006)

 

 

BEOWULF MINING PLC

CONDENSED COMPANY STATEMENT OF COMPREHENSIVE LOSS

 

FOR THE NINE MONTHS TO 30 SEPTEMBER 2020

 

 

 

 

 

Notes

(Unaudited)

3 months ended 30 September

 2020

 

 

£

(Unaudited)

3 months ended 30

September

2019

 

 

£

(Unaudited)

9 months ended 30

September

2020

 

 

£

(Unaudited)

9 months ended 30

September

2019

 

 

£

(Audited) 

12 months ended 31 December 2019

 

 

£

Continuing operations

 

 

 

 

 

 

 

 

 

 

 

 

 

Administrative expenses

 

(211,188)

(180,159)

(514,800)

(563,860)

(651,433)

Share based payment expense

 

-

(26,566)

-

(93,154)

(119,720)

 

 

 

 

 

 

 

Operating Loss

 

(211,188)

(206,725)

(514,800)

(657,014)

(771,153)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Finance income

 

8

532

591

5,715

6,298

Grant Income

 

-

-

-

-

1,425

Loss before and after taxation and total comprehensive loss

 

 

(211,180)

(206,193)

(514,209)

(651,299)

(763,430)

 

 

 

 

 

 

 

Loss per share attributable to the owners of the parent:

 

 

 

 

 

 

Basic and diluted (pence) 

3

(0.04)

(0.04)

(0.09)

(0.11)

(0.13)

 

 

 

BEOWULF MINING PLC

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

 

AS AT 30 SEPTEMBER 2020

 

 

 

 

(Unaudited)

As at

30 September

 2020

£

 

(Unaudited)

As at

30 September

2019

£

 

(Audited)

As at

31 December 2019

£

ASSETS

Notes

 

 

 

 

 

 

Non-current assets

 

 

 

 

 

 

 

Intangible assets

5

 

10,938,145

 

10,300,147

 

10,011,494

Property, plant and equipment

 

 

135,887

 

118,562

 

86,998

Loans and other financial assets

 

 

5,391

 

5,280

 

5,212

Right of use asset

 

 

3,438

 

-

 

7,324

 

 

 

 

 

 

 

 

 

 

 

11,082,861

 

10,423,989

 

10,111,028

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

Trade and other receivables

 

 

98,459

 

87,145

 

167,261

Cash and cash equivalents

 

 

1,207,384

 

907,527

 

1,124,062

 

 

 

 

 

 

 

 

 

 

 

1,305,843

 

994,672

 

1,291,323

TOTAL ASSETS

 

 

12,388,704

 

11,418,661

 

11,402,351

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EQUITY

 

 

 

 

 

 

 

Shareholders' equity

 

 

 

 

 

 

 

Share capital

4

 

6,022,446

 

5,886,392

 

6,022,446

Share premium

 

 

20,824,009

 

20,230,006

 

20,824,009

Capital contribution reserve

 

 

46,451

 

46,451

 

46,451

Share based payment reserve

 

 

732,185

 

705,619

 

732,185

Merger Reserve

 

 

137,700

 

137,700

 

137,700

Translation reserve

 

 

(636,664)

 

(1,028,270)

 

(1,291,068)

Accumulated losses

 

 

(16,577,737)

 

(15,465,909)

 

(15,781,161)

 

 

 

 

 

 

 

 

Total Equity

 

 

10,548,390

 

10,511,989

 

10,690,562

 

 

 

 

 

 

 

 

Non-controlling interests

 

 

462,514

 

397,300

 

326,555

TOTAL EQUITY

 

 

11,010,904

 

10,909,289

 

11,017,117

 

LIABILITIES

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

Trade and other payables

 

 

256,484

 

317,167

 

242,885

Grant income

 

 

149,060

 

192,205

 

134,877

Lease Liability

 

 

3,573

 

-

 

7,472

Borrowings

 

 

968,683

 

-

 

-

 

 

 

 

 

 

 

 

TOTAL LIABILITIES

 

 

1,377,800

 

509,372

 

385,234

 

 

 

 

 

 

 

 

TOTAL EQUITY AND LIABILITIES

 

 

12,388,704

 

11,418,661

 

11,402,351

 

 

BEOWULF MINING PLC

CONDENSED COMPANY STATEMENT OF FINANCIAL POSITION

AS AT 30 SEPTEMBER 2020

 

 

 

(Unaudited)

As at

30 September

 2020

£

 

(Unaudited)

As at

30 September

2019

£

 

(Audited)

As at

31 December 2019

£

ASSETS

 

 

 

 

 

 

Non-current assets

 

 

 

 

 

 

Investments

 

2,077,988

 

1,482,988

 

1,697,988

Loans and other financial assets

 

9,173,997

 

8,776,137

 

8,989,451

 

 

 

 

 

 

 

 

 

11,251,985

 

10,259,125

 

10,687,439

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

Trade and other receivables

 

22,819

 

24,755

 

23,260

Cash and cash equivalents

 

884,176

 

791,177

 

978,514

 

 

 

 

 

 

 

 

 

906,995

 

815,932

 

1,001,774

TOTAL ASSETS

 

12,158,980

 

11,075,057

 

11,689,213

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EQUITY

 

 

 

 

 

 

Shareholders' equity

 

 

 

 

 

 

Share capital

4

6,022,446

 

5,886,392

 

6,022,446

Share premium

 

20,824,009

 

20,230,006

 

20,824,009

Capital contribution reserve

 

46,451

 

46,451

 

46,451

Share option reserve

 

732,185

 

705,619

 

732,185

Merger Reserve

 

137,700

 

137,700

 

137,700

Accumulated losses

 

(16,813,068)

 

(16,186,728)

 

(16,298,859)

 

 

 

 

 

 

 

TOTAL EQUITY

 

10,949,723

 

10,819,440

 

11,463,932

 

LIABILITIES

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

Trade and other payables

 

91,514

 

63,412

 

90,404

Grant income

 

149,060

 

192,205

 

134,877

Borrowings

 

968,683

 

-

 

-

 

 

 

 

 

 

 

TOTAL LIABILITIES

 

1,209,257

 

255,617

 

225,281

 

 

 

 

 

 

 

TOTAL EQUITY AND LIABILITIES

 

12,158,980

 

11,075,057

 

11,689,213

 

 

 

BEOWULF MINING PLC

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

 

FOR THE NINE MONTHS TO 30 SEPTEMBER 2020

 

 

Share capital

Share premium

Capital contribution reserve

Share-based payment reserve

Merger reserve

Translation reserve

Accumulated losses

Total

Non-

controlling

interest

Total equity

 

£

£

£

£

£

£

£

£

£

£

 

At 1 January 2019

5,663,072

19,266,271

46,451

612,465

137,700

(520,257)

(15,311,933)

9,893,769

(160,587)

9,733,182

 

 

 

 

 

 

 

 

 

 

 

Loss for the period

-

-

-

-

-

-

(153,976)

(153,976)

(107,114)

(261,090)

Foreign exchange translation

-

-

-

-

-

(508,013)

-

(508,013)

(7,336)

(515,349)

Total comprehensive loss

-

-

-

-

-

(508,013)

(153,976)

(661,989)

(114,450)

(776,439)

 

 

 

 

 

 

 

 

 

 

 

Transactions with owners

 

 

 

 

 

 

 

 

 

 

Issue of share capital

223,320

1,026,680

-

-

-

-

-

1,250,000

-

1,250,000

Costs associated with the issue of new shares

-

(62,945)

-

-

-

-

-

(62,945)

-

(62,945)

Equity-settled share-based payment transactions

-

-

-

93,154

-

-

-

93,154

-

93,154

Acquisition of subsidiary

-

-

-

-

-

-

-

-

672,337

672,337

 

At 30 September 2019 (Unaudited)

5,886,392

20,230,006

46,451

705,619

137,700

(1,028,270)

(15,465,909)

10,511,989

397,300

10,909,289

 

 

 

 

 

 

 

 

 

 

 

 Loss for the period

-

-

-

-

-

-

(113,024)

(113,024)

(54,593)

(167,617)

Foreign exchange translation

-

-

-

-

-

(262,798)

-

(262,798)

(16,152)

(278,950)

Total comprehensive (loss)

-

-

-

-

-

(262,798)

(113,024)

(375,822)

(70,745)

(456,567)

 

 

 

 

 

 

 

 

 

 

 

Transactions with owners

 

 

 

 

 

 

 

 

 

 

Issue of share capital

136,054

624,363

-

-

-

-

-

760,417

-

760,417

Costs associated with the issue of new shares

-

(30,360)

-

-

-

-

-

(30,360)

-

(30,360)

Equity-settled share-based payment transactions

-

-

-

26,566

-

-

-

26,566

-

26,566

Step acquisition of subsidiary

-

-

-

-

-

-

(202,228)

(202,228)

-

(202,228)

 

 

 

 

 

 

 

 

 

 

 

At 31 December 2019 (Audited)

6,022,446

20,824,009

46,451

732,185

137,700

(1,291,068)

(15,781,161)

10,690,562

326,555

11,017,117

 

 

 

 

 

 

 

 

 

 

 

Loss for the period

-

-

-

-

-

-

(623,064)

(623,064)

(83,310)

(706,374)

Foreign exchange translation

-

-

-

-

-

654,404

-

654,404

5,756

660,160

Total comprehensive income

-

-

-

-

-

-

(623,064)

31,340

(77,554)

(46,214)

 

 

 

 

 

 

 

 

 

 

 

Transactions with owners

 

 

 

 

 

 

 

 

 

 

Step acquisition of Subsidiary

-

-

-

-

-

-

(173,512)

(173,512)

213,513

40,001

At 30 September 2020 (Unaudited)

6,022,446

20,824,009

46,451

732,185

137,700

(636,664)

10,548,390

462,514

11,010,904

 

 

 

 

 

 

 

BEOWULF MINING PLC

CONDENSED COMPANY STATEMENT OF CHANGES IN EQUITY

FOR THE NINE MONTHS TO 30 SEPTEMBER 2020

 

 

 

Share capital

Share premium

Merger reserve

Capital contribution reserve

Share-based payment reserve

Accumulated losses

Total

 

£

£

£

£

£

£

£

 

At 1 January 2019

5,663,072

19,266,271

137,700

46,451

612,465

(15,535,429)

10,190,530

 

 

 

 

 

 

 

 

Loss for the period

-

-

-

-

-

(651,299)

(651,299)

Total comprehensive loss

-

-

-

-

-

(651,299)

(651,299)

 

 

 

 

 

 

 

 

Transactions with owners

 

 

 

 

 

 

 

Issue of share capital

223,320

1,026,680

-

-

-

-

1,250,000

Costs associated with the issue of new shares

-

(62,945)

-

-

-

-

(62,945)

Equity-settled share-based payment transactions

-

-

-

-

93,154

-

93,154

 

At 30 September 2019 (Unaudited)

5,886,392

20,230,006

137,700

46,451

705,619

(16,186,728)

10,819,440

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss for the period

-

-

-

-

-

(112,131)

(112,131)

Total comprehensive loss

-

-

-

-

-

(112,131)

(112,131)

 

 

 

 

 

 

 

 

Transactions with owners

 

 

 

 

 

 

 

Issue of share capital

136,054

624,363

-

-

-

-

760,417

Costs associated with the issue of new shares

-

(30,360)

-

-

-

-

(30,360)

Equity-settled share-based payment transactions

-

-

-

-

26,566

-

26,566

 

 

 

 

 

 

 

 

At 31 December 2019 (Audited) (Unaudited)

6,022,446

20,824,009

137,700

46,451

732,185

(16,298,859)

11,463,932

 

 

 

 

 

 

 

 

Loss for the period

-

-

-

-

-

(514,209)

(514,209)

Total comprehensive loss

-

-

-

-

-

(514,209)

(514,209)

 

 

 

 

 

 

 

 

At 30 September 2020 (Unaudited)

6,022,446

20,824,009

137,700

46,451

732,185

(16,813,068)

10,949,723

 

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED INTERIM

FOR THE NINE MONTHS TO 30 SEPTEMBER 2020

 

 

1 . Nature of Operations

 

Beowulf Mining plc (the "Company") is domiciled in England and Wales. The Company's registered office is 201 Temple Chambers, 3-7 Temple Avenue, London, EC4Y 0DT. This consolidated financial information comprises that of the Company and its subsidiaries (collectively the 'Group' and individually 'Group companies'). The Group is engaged in the acquisition, exploration and evaluation of natural resources assets and has not yet generated revenues.

 

2. Basis of preparation

 

The condensed consolidated financial information has been prepared on the basis of the recognition and measurement requirements of International Financial Reporting Standards (IFRS) as adopted by the European Union (EU) and implemented in the UK. The accounting policies, methods of computation and presentation used in the preparation of the interim financial information are the same as those used in the Group's audited financial statements for the year ended 31 December 2019 except as noted below.

 

The Group applied the provisions of IFRS 10 from 1 April 2019 to its investment in Vardar following a further increase in ownership, and consolidated Vardar effective of this date. The primary impact of this consolidation in the comparatives for the 9 months to 30 September 2020 has been in the inclusion of the gain on acquisition at 1 April of £563,431, and the inclusion consolidated operating costs of £78,926.  

 

The financial information in this statement does not constitute full statutory accounts within the meaning of Section 434 of the UK Companies Act 2006. The financial information for the period ended 30 September 2019 is unaudited and for the twelve months ended 31 December 2019 is audited. The financial information for the nine-month period ended 30 September 2020 is unaudited and has not been reviewed by the auditors. The audit of the financial information for the year ended 31 December 2019 has been completed.  The auditor's report on the statutory financial statements for the year ended 31 December 2019 was unqualified and did not contain any statement under sections 498 (2) or (3) of the Companies Act 2006. The audit report did contain a material uncertainty with respect of going concern, however following additional audit procedures and noting it as key audit matter, it was concluded the going concern basis was appropriate.  

 

The going concern assumption has been assessed by the Directors in light of the impact of Covid-19, taking into consideration the entities current financial position, ability to raise new funds and carry out its operations for the year. The Directors are confident that there is no immediate need for funding following the   loan financing in Sweden of SEK 12 million (before expenses) secured in the previous period.

 

The financial statements are presented in GB Pounds Sterling. They are prepared on the historical cost basis or the fair value basis where the fair valuing of relevant assets and liabilities has been applied.

 

 

 

 

3. Group and Company loss per share

 

 

 

 

 

 

 

 

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

(Audited)

 

3 months

3 months

9 months

9 months

12 months

 

ended

ended

ended

ended

ended

Group

30 September 2020

30 September 2019

30 September 2020

30 September 2019

31 December 2019

Loss for the year attributable to shareholders of the Company (£'s)

(269,869)

(255,922)

(623,064)

(153,976)

(267,000)

Weighted average number of ordinary shares

602,244,672

580,770,460

602,244,672

580,770,460

585,102,740

Diluted weighted average number of ordinary shares

602,244,672

580,770,460

602,244,672

580,770,460

585,102,740

Loss per share (p)

(0.04)

(0.04)

(0.10)

(0.03)

(0.04)

Diluted loss per share (p)

(0.04)

(0.04)

(0.10)

(0.03)

(0.04)

Parent

 

 

 

 

 

Loss for the year attributable to shareholders of the Company (£'s)

(211,180)

(206,193)

(514,209)

(651,299)

(763,430)

Weighted average number of ordinary shares

602,244,672

580,770,460

602,244,672

580,770,460

585,102,740

Diluted weighted average number of ordinary shares

602,244,672

580,770,460

602,244,672

580,770,460

585,102,740

Loss per share (p)

(0.04)

(0.04)

(0.09)

(0.11)

(0.13)

Diluted loss per share (p)

(0.04)

(0.04)

(0.09)

(0.11)

(0.13)

 

 

 

 

 

 

 

 

 

 

4. Share Capital

 

 

 

(Unaudited)

 

(Unaudited)

 

(Audited)

 

30 September 2020

 

30 September 2019

 

31 December 2019

 

£

 

£

 

£

Allotted, issued and fully paid

 

 

 

 

 

Ordinary shares of 1p each

 

 

 

 

 

 

6,022,446

 

5,886,392

 

6,022,446

 

 

 

The number of shares in issue was as follows:

 

 

 

Number

 

of shares

Balance at 1 January 2019

566,307,254

Issued during the period

22,332,016

Balance at 30 September 2019

588,639,270

Issued during the period

13,605,402

Balance at 31 December 2019

602,244,672

Balance at 30 September 2020

602,244,672

 

 

5. Intangible Assets: Group

 

Exploration costs

 

As at 30

September 

2020

 

As at 30

September 

2019

 

As at 31 December

2019

 

(Unaudited)

 

(Unaudited)

 

(Audited)

 

£

 

£

 

£

Cost

 

 

 

 

 

At 1 January 

10,011,494

 

8,285,547

 

8,285,547

Additions for the year

291,136

 

528,992

 

1,304,896

Additions arising from the step-up in interest in Vardar

-

 

1,389,553

 

1,203,685

Foreign exchange movements

654,165

 

(507,299)

 

(771,914)

Impairment

(18,650)

 

-

 

(10,720)

 

 

 

 

 

 

 

 

10,938,145

 

9,696,793

 

10,011,494

 

The net book value of exploration costs is comprised of expenditure on the following projects:

 

 

As at

30

September

2020

 

As at

30

September 

 2019

 

As at

31

December

2019

 

 

(Unaudited)

 

(Unaudited)

 

(Audited)

 

 

£

 

£

 

£

Project

Country

 

 

 

 

 

Kallak

Sweden

7,210,742

 

6,724,645

 

6,675,124

Åtvidaberg

Sweden

373,126

 

352,708

 

345,978

Ågåsjiegge

Sweden

-

 

15,985

 

15,568

Sala

Sweden

-

 

9,251

 

-

Pitkäjärvi

Finland

1,290,465

 

1,065,208

 

1,058,078

Joutsijärvi

Finland

21,901

 

19,787

 

19,095

Räpysjärvi

Finland

47,093

 

34,042

 

39,905

Karhunmäki

Finland

40,704

 

20,216

 

24,078

Merivaara

Finland

33,175

 

15,992

 

17,846

Polvela

Finland

34,043

 

29,665

 

31,316

Tammijärvi

Finland

27,127

 

19,741

 

24,278

Mitrovica

Kosovo

1,323,224

 

959,567

 

1,243,194

Viti

Kosovo

536,545

 

429,986

 

517,034

 

 

10,938,145

 

9,696,793

 

10,011,494

 

 

Total Group exploration costs of £10,938,145 are currently carried at cost in the financial statements. During the period Ågåsjiegge was identified as a project to be discontinued. The impairment charge arising from the impairment of the project was £18,650 (30 September 2019 : £Nil).

 

Accounting estimates and judgements are continually evaluated and are based on a number of factors, including expectations of future events that are believed to be reasonable under the circumstances. Management are required to consider whether there are events or changes in circumstances that indicate that the carrying value of this asset may not be recoverable.

 

The most significant risk currently facing the Group is that it does not receive an Exploitation Concession for Kallak. The Company originally applied for the Exploitation Concession in April 2013 and throughout 2017, and since the year-end, management have actively sought to progress the application, engaging with the various government bodies and other stakeholders. These activities are summarised above.

Kallak is included in the condensed financial statements as at 30 September 2020 as an intangible exploration licence with a carrying value of £7,210,742. Management have considered the status of the application for the Exploitation Concession and in their judgement, they believe it is appropriate to be optimistic about the chances of being awarded the Exploitation Concession and thus have not impaired the project.

 

6. Borrowings

 

 

As at 30

September 

2020

 

As at 30

September 

2019

 

As at 31 December

2019

 

(Unaudited)

 

(Unaudited)

 

(Audited)

 

£

 

£

 

£

Current

 

 

 

 

 

Bridging loan 

968,683

 

-

 

-

 

 

 

 

 

 

 

 

968,683

 

-

 

-

 

On 13 August 2020, the Company secured a Bridging loan from Nordic investors of SEK 12 million (approximately £1.0 million) .The Loan has a fixed interest rate of 1.5 percent per stated 30-day period during the duration.  Accrued interest is non-compounding. The Loan has a commitment fee of 5 per cent and a Maturity Date of 15 January 2021.

 

Beowulf can repay the Loan and accrued interest at any time prior to the Maturity Date. If the Loan and accrued interest is not repaid by 15 February 2021, at the latest, the Creditors have the right to convert the Loan and accrued interest into Swedish Depository Receipts ("SDR") at a price per SDR calculated with a 10 per cent discount on the volume weighted average price of the SDR during the preceding 5 trading days to the conversion decision.

The Loan is accounted for using an amortised cost using an effective rate of interest. The conversion feature contained within the loan is considered an embedded derivative and has not been assessed as significant given the available inputs.

 

 

 

 

7. Availability of interim report

 

A copy of these results will be made available for inspection at the Company's registered office during normal business hours on any weekday. The Company's registered office is at 207 Temple Chambers, 3-7 Temple Avenue, London, EC4Y 0DT. A copy can also be downloaded from the Company's website at www.beowulfmining.com. Beowulf Mining plc is registered in England and Wales with registered number 02330496.

 

 

** Ends **

 

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