Final Results

RNS Number : 4123W

Critical Metals PLC

22 December 2021

 

Critical Metals plc / EPIC: CRTM / Market: Main Market / Sector: Closed End Investments

22 December 2021

Critical Metals plc

("Critical Metals" or the "Company")

Final Results

Critical Metals plc, a mining investment company established to target opportunities in the overlooked and under-analysed mining sector, is pleased to announce its Final Results for the year ended 30 June 2021. A copy of this announcement and the Annual Report for the year ended 30 June 2021 will be made available on the Company's website at www.criticalmetals.co.uk.

Statement from the Board

I am pleased to present the financial statements for Critical Metals plc for the year ended 30 June 2021.

After navigating through a long initial public listing process in 2020, during which the markets experienced significant volatility amidst BREXIT negotiations and the Covid-19 pandemic, we are delighted to present our first financial statements as a listed company.

When considering the global macro-environmental uncertainties regarding supply and demand in the critical metals sector, the need to identify and invest in the stable supply of metals that will allow economies to operate and grow becomes increasingly evident. Critical Metals' strategy is to search for acquisition opportunities in the natural resources sector on known deposits, and, more specifically, for minerals that are perceived to have strategic importance to future economic growth.

On 20 May 2021, we announced our intention to purchase a controlling position in a company that holds the rights to a previously producing copper-cobalt property in the Democratic Republic of Congo, namely 'Small Scale Mining License' ("Permis d'Exploitation de Petit Mine") PEPM 14784 (the "Molulu Project"). We have been completing our due diligence and legal investigations since the time of this announcement and it is our intention to file for readmission to the Standard List of the London Stock Exchange in early 2022 as a mining company enlarged by the acquisition of an indirect controlling interest in the Molulu Project.

The goal of our Company to become cash flow positive in 2022 and beyond is still intact, and, looking forward, I am very excited about what the entry into 2022 will hold for Critical Metals. The Board believes that 2022 will be a year of significant growth for the Company as we look to advance our strategy and create value for shareholders.

I would like to thank my fellow Board members and our shareholders for their support as we travel this exciting journey of building this unique opportunity into a profitable company.

Financial Overview

Funding

The Company is funded through investment from its shareholders, having successful raised £800,000 before costs upon its Standard Listing IPO onto the London Stock Exchange on 29 September 2020, along with the receipt of £1,090,451 upon the exercise of warrants during the year.

Revenue

The Company has generated no revenue during the year, however is focussing on acquisition targets that will ultimately generate revenue for the Company in the relatively near term.

Expenditure

During the year, the Company completed its listing on the London Stock Exchange and focussed its expenditure on this process, with very minimal expenditure unrelated to the listing being incurred up to the date of admission, being 29 September 2020 ("Admission"), including all directors foregoing salaries until Admission. Since Admission, the Company has focussed its efforts and expenditure on assessing potential acquisition targets in line with its strategy, and, since the signing of heads of terms in respect of the  Molulu Project, on progressing its due diligence in relation to the Molulu Project and the process for readmitting to the Standard List as an operating company enlarged by the acquisition of a controlling interest in such project.

Liquidity, cash and cash equivalents

At 30 June 2021, the Company held £1,483,544 (2020: £62,072) which is all denominated in pounds sterling.

Dividend

The Directors do not intend to declare a dividend in respect of the period under review (2020: £nil).

Russell S. Fryer

Executive Chairman

21 December 2021

**ENDS**

For further information on the Company please visit www.criticalmetals.co.uk or contact:

Russell Fryer	Critical Metals plc	Tel: [phone]
Rory Murphy / James Bellman	Strand Hanson Limited Financial Adviser	Tel: [phone]
Lucy Williams / Duncan Vasey	Peterhouse Capital Limited, Corporate Broker	Tel: [phone] Tel: [phone]
Catherine Leftley / Isabelle Morris	St Brides Partners Ltd, Financial PR	Tel: [phone]

About Critical Metals

Critical Metals was formed as an investment company and intends to make equity investments into operators or near-term production operators within the natural resources development and production sector in the continent of Africa. It is envisaged that such acquisition or acquisitions will trigger a reverse takeover in accordance with the listing rules. The Company intends to search initially for acquisition opportunities in the natural resources sector on known deposits and more specifically minerals that are perceived to have strategic importance to future economic growth. Commodities such as antimony, beryllium, cobalt, copper, fluorspar, gold, rare earth elements, tin, tungsten, titanium, and vanadium have been identified by several governments as "critical minerals" and so guaranteeing supplies is seen as a strategic necessity. The Company therefore believes that the market conditions for these minerals will remain strong in the short-to-long term.

 

Statement of Comprehensive Income

	Notes	Year ended 30 June 2021   £		Period ended 30 June 2020   £
Revenue
Revenue from continuing operations		-		-
		-		-
Expenditure
Costs associated with listing	4	(122,306)		(72,172)
Other expenses	4	(225,278)		(26,121)
		(347,584)		(98,293)
Loss on ordinary activities before taxation		(347,584)		(98,293)
Taxation on loss on ordinary activities		-		-
Loss and total comprehensive income for the year attributable to the owners of the company		( 347,584)		(98,293)
Earnings per share (basic and diluted) attributable to the equity holders (pence)	8	(1.18)		(0.69)

 

Statement of Financial Position

	Notes	30 June 2021   £		30 June 2020   £
CURRENT ASSETS
Trade and other receivables	9	17,851		417
Cash at bank and in hand	10	1,483,544		62,072
		1,501,395		62,489
TOTAL ASSETS		1,501,395		62,489
CURRENT LIABILITIES
Trade and other payables	11	31,055		94,016
TOTAL LIABILITIES		31,055		94,016
NET (LIABILITIES) / ASSETS		1,470,340		(31,527)
EQUITY
Called up share capital	12	208,298		71,428
Share premium account	12	1,735,315		68,572
Share based payment reserve		45,838		-
Retained earnings		(519,111)		(171,527)
TOTAL EQUITY		1,470,340		(31,527)

 

Statement of Changes in Equity

		Notes	Issued Share Capital	Share Premium	SBP Reserve	Retained Earnings	Total Equity
			£	£	£	£	£
Balance at 1 July 2019			68,571	51,429	-	(73,234)	46,766
Loss for the year			-	-	-	(98,293)	(98,293)
Other comprehensive loss			-	-	-	-	-
Total comprehensive loss for the year			-	-	-	(98,293)	(98,293)
Shares issued during the year			2,857	17,143	-	-	20,000
Total transactions with owners			2,857	17,143	-	-	20,000
As at 30 June 2020			71,428	68,572	-	(171,527)	(31,527)
Loss for the year			-	-	-	(347,584)	(347,584)
Other comprehensive loss			-	-	-	-	-
Total comprehensive loss for the year			-	-	-	(347,584)	(347,584)
Shares issued during the year			136,870	1,754,331	-	-	1,891,201
Share issue costs during the year			-	(87,588)	-	-	(87,588)
Warrants issued during the year			-	-	45,838	-	45,838
Total transactions with owners			136,870	1,666,743	45,838	-	1,849,451
As at 30 June 2021			208,298	1,735,315	45,838	(519,111)	1,470,340
Share capital	Amount subscribed for share capital at nominal value.
Share premium	Amount subscribed for share capital in excess of nominal value.
Share based payment reserve	Cumulative charge recognised under IFRS 2 in respect of share‐based payment awards.
Retained earnings	Cumulative other net gains and losses recognised in the financial statements.

 

Statement of Cashflow

		30 June 2021 £		30 June 2020 £
Cash from operating activities
Loss for the year		(347,584)		(98,293)
Adjustments for:
Foreign exchange		8,009
Operating cashflow before working capital movements		(339,575)		(98,293)
Decrease / (increase) in trade and other receivables		(17,435)		4,119
(Decrease) / increase in trade and other payables		(62,960)		83,778
Net cash used in operating activities		(419,970)		(10,396)
Cash from financing activities
Proceeds on the issue of shares		1,849,451		20,000
Net cash from financing activities		1,849,451		20,000
Net increase in cash and cash equivalents		1,429,481		9,604
Cash and cash equivalents at being of year		62,072		52,468
Foreign exchange		(8,009)		-
Cash and cash equivalents at end of period	10	1,483,544		62,072

 

END

 

 

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