Interim Results

First Tin PLC

22 September 2023

 

22 September 2023

First Tin Plc

("First Tin" or "the Company")

Interim Results for the six months ended 30 June 2023

First Tin PLC, a tin development company with advanced, low capex projects in Germany and Australia, today publishes its final interim results for the six months ended 30 June 2023.

Highlights

·      Ended the period with a robust cash position of over £7.9m (30 June 2022: £18.8m)

·      Loss before tax of £2.3m (30 June 2022: £2.1m)

·      The fully funded DFS at Taronga, Australia continued at pace:

o  Signed an agreement with BID Energy Partners to provide a feasibility study on renewable energy supply options which has the potential to materially reduce the power costs of the project, supports permitting and is aligned with First Tin's desire to have the highest ESG credentials for the benefit of all our stakeholders

o  Completed all confirmatory drilling and exploration work with results from the programme confirming both the widths and grades of mineralisation previously reported by Newmont between 1979 and 1982 and identifying an approximate 400m extension to the southwest

o  Discovered the Tin Beetle prospect, with drilling confirming mineralisation over the entire 2.3km tested and validating First Tin's thesis that Taronga is part of a tin district rather than a singular tin occurrence

o  100% owned Australia subsidiary - Taronga Mines Pty Ltd ("TMPL") applied for a large (276.6km2) Exploration Licence covering the majority of the Tingha tin field, consolidating First Tin's control of significant historical tin producing areas in northeastern New South Wales (post period end)

o  Crushing testwork results confirmed significant upgrading effect for both high-grade and low-grade mineralisation at the Taronga tin project (post-period end)

o  Published an updated JORC compliant Mineral Resource Estimate ("MRE") which increased the size of the Taronga resource by over 240% to 133 million tonnes, demonstrating the true scale of the Taronga asset (post-period end)

o  Results from end-to-end mineral processing testwork identified a simple and cost-effective processing option for the tin mineralisation found at the asset (post-period end)

·      Continued to progress the Tellerhäuser project, Germany:

o  Saxonian Mining Authority confirmed eligibility to move straight to the construction and operational permitting process, reducing the overall permitting timeframe by up to 12-18 months

o  Submitted complete documentation for mine permit application to the Saxonian Mining Authority with a decision expected prior to the end of Q3 2024

o  Continuing to expand the current JORC MRE by utilising the recently uncovered historical Wismut drilling data alongside additional drilling

Thomas Buenger, Chief Executive Officer, commented:

" First Tin has made strong progress during the period, executing key workstreams and adding significant value at both its flagship tin assets in Australia and Germany. The management team has focused on advancing both assets through their Definitive Feasibility Studies, while extension development and exploration drill programmes have produced excellent results.

"We remain well-positioned to complete both DFS studies at our Taronga and Tellerhäuser assets, during Q1 2024 and Q3 2024, respectively.

"Tin is fundamental in any plan to decarbonise and electrify the world. At the same time, global tin supply is falling with 75% of global tin production from non-Tier-One, non-OECD countries. Therefore, it is vital that demand is met by companies which are dedicated to supplying tin reliably and responsibly. First Tin remains committed to bringing its assets into production at a pivotal time and is poised to become a material future tin supplier from its conflict-free and low political risk jurisdictions."

Analyst Presentation

There will be a Zoom webinar for equity analysts at 10:30am BST today, hosted by Thomas Buenger, CEO and Charles Cannon-Brookes, Non-Executive Chairman. Any analysts wishing to register for the event should email [e-mail].

Investor Presentation Reminder

Additionally, Thomas Buenger, CEO and Tony Truelove, COO, will provide a live presentation for investors via the Investor Meet Company platform at 09:00am BST on Monday 25^th September 2023.

The presentation is open to all existing and potential shareholders. Questions can be submitted pre-event via the Investor Meet Company dashboard up until 9:00am the day before the meeting or at any time during the live presentation.

Investors can sign up to Investor Meet Company for free and click "Add to Meet" First Tin via:

https://www.investormeetcompany.com/first-tin-plc/register-investor

Enquiries:

First Tin	Via SEC Newgate below
Thomas Buenger - Chief Executive Officer
Arlington Group Asset Management Limited (Financial Advisor and Joint Broker)
Simon Catt	020 7389 5016
WH Ireland Limited (Joint Broker)
Harry Ansell	020 7220 1670
SEC Newgate (Financial Communications)
Elisabeth Cowell / Molly Gretton	07900 248 213

Notes to Editors

First Tin is an ethical, reliable, and sustainable tin production company led by a team of renowned tin specialists. The Company is focused on becoming a tin supplier in conflict-free, low political risk jurisdictions through the rapid development of high value, low capex tin assets in Germany and Australia.

Tin is a critical metal, vital in any plan to decarbonise and electrify the world, yet Europe has very little supply. Rising demand, together with shortages, is expected to lead tin to experience sustained deficit markets for the foreseeable future. Its assets have been de-risked significantly, with extensive work undertaken to date.

First Tin's goal is to use best-in-class environmental standards to bring two tin mines into production in three years, providing provenance of supply to support the current global clean energy and technological revolutions.

CHAIRMAN'S STATEMENT

FOR THE PERIOD ENDED 30 JUNE 2023

I am pleased to report that during the six months ended 30 June 2023, First Tin has achieved strong operational progress, completing key workstreams at both of its flagship tin projects in Australia and Germany. Despite persistent macroeconomic challenges such as the ongoing war in Ukraine, increasing geopolitical tensions and volatility of global stock exchanges, our teams in Australia and Germany have worked diligently to add value and to reduce risk at both our assets.

After a rollercoaster year in 2022 where the tin price hit record high prices of c.US$50k per tonne in March and then hit a two-year price low of c.US$17k in October, the period under review has seen a much less volatile price range of between US$20k-US$30k. This has been set against a market backdrop where falling global supply has been more than countered by weak global demand. 

On the supply side, material disruptions from a number of leading tin-producing countries such as Bolivia, Peru, Indonesia, China and Wa State, impacted the global tin market. Market forecasts indicate that an excess of 10,000 tonnes could be removed from the annual global tin supply in 2023 alone. Against such a bearish supply picture, one would have expected to see a significant increase in tin spot prices. However, this supply weakness has been more than offset by a general drop-off in global demand. This demand reduction has predominantly come from traditional tin sectors such as tinplate and chemicals and from a general drop in the demand for consumer electronics driven by low global GDP growth forecasts and high interest rates which have curtailed demand for luxury goods. While it is hard to accurately forecast when aggregate tin demand will strengthen, tin is experiencing strong levels of demand in some individual sectors such as in solar ribbon and electric vehicles. The longer-term picture for tin remains bright with material deficits still forecast to start in 2026 exactly when First Tin intends to bring its two flagship assets into production.    

Tin remains a vital ingredient for global decarbonisation and is a key component in the production of semiconductors, artificial intelligence technology, electric vehicles, batteries, solar panels, and renewable technology. The pressures facing companies to decarbonise their supply chains mean that it is essential that this demand is met by companies which are dedicated to supplying tin reliably and responsibly. First Tin remains committed to bringing its assets into production at a pivotal time and is poised to become a material future tin supplier from its conflict-free and low political risk jurisdictions.

During the period, the management team focused on advancing both assets through their respective Definitive Feasibility Studies ("DFS"). We have made strong operational progress at our Taronga asset, successfully completing all drilling and exploration work and publishing an updated JORC compliant Mineral Resource Estimate ("MRE") which increased the size of the Taronga resource by over 240% to 133 million tonnes. This updated JORC MRE statement demonstrates the true scale of our Taronga asset and I am pleased to report that there remains plenty of scope to further increase the size of total resource both from the Taronga asset itself and from its satellite orebodies. 

However, perhaps the most promising development at Taronga in the interim period has been the results from the beneficiation and processing work undertaken on high-grade and low-grade bulk samples. This work showed that the high-grade bulk sample (0.18% Sn head grade) was simply and cheaply upgraded to 0.63% Sn using only a simple coarse crushing and screening technique followed by jigs and spirals while the mass was reduced by 73% and 79% of the tin content was retained. This low-cost and simple beneficiation solution is a unique feature of the Taronga orebody corroborating previous historical work undertaken by Newmont. Furthermore, the estimated 73% reduction in the tonnage that needs to be processed after the beneficiation process will have a material positive impact on future capex and opex forecasts. The DFS at Taronga is on track to be completed during Q1 2024.

At our Tellerhäuser asset, we have made solid progress in terms of permitting the project, receiving confirmation that the mine permit will go through a fast-track process. Work on the ground in Germany and in relation to the ongoing DFS has been focussed on permitting work, metallurgy, and processing, as well as on expanding the current JORC MRE by utilising the recently uncovered historical Wismut drilling data. We expect to be able to release an updated MRE on both Hammerlein and Dreiberg deposits before the end of the year, with the DFS forecast to be released in Q3 2024 and the granting of the mining license shortly thereafter.

On behalf of the Board, I would like to thank the First Tin management team and employees for their ongoing determination and hard work, which has resulted in a series of significant operational achievements during the period. I would also like to thank all of our stakeholders for their continued support and commitment. We look forward to the second half of 2023 with great excitement as we continue to progress our flagship assets.

C Cannon Brookes
Chairman

CHIEF EXECUTIVE OFFICER'S REPORT

FOR THE PERIOD ENDED 30 JUNE 2023

First Tin has a clear ambition: to develop a sustainable, reliable, conflict-free supply of tin which meets the stringent ESG values that are increasingly driving the purchasing behaviour of consumers globally, and therefore the businesses which serve them.

With customers and brands alike scrutinising the provenance and Scope 3 emissions associated with the materials and products they purchase, there is a significantly growing demand for high-quality, traceable, ESG-compliant sources of tin. These customers and brands now expect to receive tin which has been produced in a way which benefits the communities in which the mine is located, and which upholds best-in-class health and safety practices.

This embodies First Tin's approach to mining and together our assets represent the fifth largest undeveloped tin reserves globally, outside of Russia, Kazakhstan, and the DRC. Our assets are located in the low-risk, conflict-free jurisdictions of Australia and Germany and their development is being led by a management team with significant personal investment committed to bringing them into production in an environmentally compliant way.

Tin is a designated critical material due to its vital role in decarbonising and electrifying the world. First Tin is positioned to deliver its first production to coincide closely with a market deficit which is forecast to start in 2026 and remain in deficit for many years thereafter unless material new sources of tin supply can be found.

Taronga - Australia

Taronga is located in New South Wales. It is a low-risk asset in a low-risk jurisdiction. Acquired in 2022 by First Tin, it is surrounded by excellent existing infrastructure and benefits from over a century of development and abundant underexplored tin showings, providing major exploration upside potential. Significant exploration work was undertaken by BHP in 1933, 1958, and 1964, and by the Newmont Joint Venture from 1979 to 1983.

Since our IPO in April 2022, we have been focused on drilling at Taronga to confirm the historical data and extend the mineralisation and I am pleased to say that we have been successful on both fronts.  As recently announced, the Company's JORC compliant Mineral Resource Estimate ("MRE") increased by 240% to a new total of 138,300 tonnes contained tin    with significant potential for further increases. 

The MRE was completed by independent geological consultants H&S Consultants Pty Ltd and prepared in accordance with the 2012 JORC Code & Guidelines.

It was reported using a 0.05% tin ("Sn") cut-off to a maximum depth of 300m below surface (650mRL):

Category	Tonnage (Million)	Grade (% Sn)	Tin (Tonnes)
Measured	33.0	0.13	44,200
Indicated	38.9	0.11	42,000
Sub-Total (M&I)	71.9	0.12	86,200
Inferred	61.1	0.09	61,100
TOTAL	133.0	0.10	138,300

(minor rounding errors)

Aus Tin Mining Ltd's previous MRE, reported in 2014, was calculated using a 0.10% Sn cut-off. The lower cut-off for the updated MRE is based on revised economic considerations including higher 3-year trailing tin prices, lower AUD:USD exchange rates and preliminary estimates of mining, processing and G&A costs.

When comparing the two Mineral Resources, we are pleased to see that the updated MRE represents a 40% increase in total contained tin metal based on the same cut-off. This has been successfully delivered due to exploration drilling by First Tin extending the Mineral Resource to the southwest of the existing estimate, a new geological interpretation, and a reconfigured grade interpolation technique.

We believe that Taronga should not be seen as a stand-alone asset, but rather as the most developed asset in what is a tin district. In May 2023, we were delighted to confirm our thesis through the receipt of the first drill hole from our Tin Beetle satellite prospect, 9km from the Taronga tin deposit. The first hole returned 7 metres @ 0.63% Sn within a broader intersection of 48 metres @ 0.18% Sn from 2 metres depth. Tin Beetle is one of six potential satellite deposits for Taronga, and we look forward to initialising further exploration and drilling programmes in the coming months.

The Company has also been focussing on advancing the mineral processing work at Taronga in order to finalise its final flow sheet and preferred processing route. As recently announced, crush, jig and spiral test results confirmed the premise that the cassiterite (SnO2 - tin ore mineral) is easily liberated at a coarse crush size and that a good quality concentrate can be obtained using very simple gravity separation techniques. Using coarse gravity techniques only (i.e. no fine tin recovery) and a processing route that consists only of crushing, jigs, spirals and shaking tables, it has been demonstrated that 55% of the total tin can be recovered into a 56% low impurity Sn concentrate. 

Due to the simplicity of the coarse tin only circuit, this processing flow sheet has now been chosen as the go-forward option for the Definitive Feasibility Study ("DFS"), with the possible additions of a fine tin recovery circuit and/or supplementary crushing options being investigated as part of future optimisation work to further increase recovery rates. Ongoing recovery studies on lower grade samples are currently in progress, designed to obtain a realistic grade-recovery curve for use in the DFS and will be announced when received.

It is also worth noting that during the period, we partnered with BID Energy Partners, an Australia-based energy company, to provide a feasibility study on renewable energy supply options for Taronga. This is a critical element for the Company's efforts to minimise its carbon footprint and be energy efficient. Fortunately, we are well placed to take advantage of renewable energy due to a number of factors, including our freehold ownership over a significant portion of land around the project which is sufficient to develop significant solar and/or wind farms, with high-solar capacity and good wind speed characteristics.

In summary, the material increase in the Taronga JORC MRE, including the inclusion of a Measured Resource category for the first time, alongside the validation of a low-cost and simple beneficiation process, positions the Company well. We aim to complete the DFS at this asset during Q1 2024.

Tellerhäuser - Germany

Our Tellerhäuser project is one of the world's most advanced tin deposits. It is located in the tin district of Saxony, which showcases an exceptionally long history of mining and has an active Mining Licence for the extraction of mineral resources valid until 30 June 2070. A Scoping Study previously undertaken on Tellerhäuser in 2021, showed positive overall economics for the project with a very low up-front CAPEX number of US$49m. First Tin's current efforts are to drive forward a DFS on the project with a targeted completion date in H2 2024.

As part of this DFS effort, further deep drilling was completed during the period in the Dreiberg target. We successfully intersected high-grade tin mineralisation at depth and along strike from the previous holes drilled by Wismut with each of the four holes drilled. The results were highly encouraging, confirming the skarn horizon is present, continuous and mineralised with high-grade tin which corroborates the legacy Wismut drilling from over 40 years ago.

We were also able to benefit from the ongoing data mining of a considerable amount of historical drilling data for the Tellerhäuser project area. Following granting of the Mining Licence in 2021, Saxore was able to request additional historical data, in particular drillholes targeting uranium mineralisation, that were also assayed for tin and other metals. This data is currently being added to the main database and should lead to additional resource tonnes being added very cost effectively. We expect to publish an updated JORC compliant MRE for Tellerhäuser during December 2023.

During the period, we also made positive progress in relation to permitting. Having already received confirmation from the Saxonian Mining Authority that the asset is eligible to move straight to the construction and operational permitting process, we announced the submission of the complete documentation for our mine permit application in June 2023.  The Company expects that a mining license will be issued in Q3 2024 shortly after the release of the DFS.

Finance Review

Interim 2023 represents a period of investment by the Company as it progresses both its flagship assets through permitting and their respective DFS studies.

In respect of the financial results, First Tin posted a comprehensive loss for the period of GBP£1.4m and ended the period with a healthy cash position of GBP£8.0m and a net asset value of GBP£39.5m.

Expenditure during the period was primarily focused on drilling activities and other DFS related costs as well as on strategic land, property, and machinery acquisitions.

Outlook

The work undertaken during the period has significantly progressed the development of both of the Company's core assets and has increased value. With the expected release of a DFS at our Taronga asset due in Q1 2024, we are making positive strides towards our 2026 production target and remain excited at the momentum we are building.

I would like to thank our valued investors for their continued support, and I look forward to reporting on our ongoing progress.

T Buenger
Chief Executive Officer

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE PERIOD ENDED 30 JUNE 2023

 

			Note	Period to		Period to
				30		30
				June		June
				2023		2022
				(Unaudited)		(Unaudited)
				£		£
Administrative expenses				(1,462,689)		(896,968)
IPO costs				-		(505,335)
Share based payments (non-cash)			6	-		(707,100)
Operating loss				(1,462,689)		(2,109,403)
Finance income				48,886		-
Finance costs				(23)		-
Loss before tax				(1,413,826)		(2,109,403)
Income tax expense				-		-
Loss for the period				(1,413,826)		(2,109,403)
Other comprehensive (loss)/income
Exchange differences on translation of foreign
operations				(862,072)		51,628
Other comprehensive (loss)/income for the
period				(862,072)		51,628
Total comprehensive loss for the period				(2,275,898)		(2,057,775)
Total comprehensive loss attributable to
the equity holders of the company				(2,275,898)		(2,057,775)
Basic loss - pence per share			5	(0.53)		(1.07)
Diluted loss - pence per share			5	(0.53)		(1.07)

The Notes on pages 11 to 18 form an integral part of these Condensed Consolidated Financial Statements.

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2023

 

	Note	30		31
		June		December
		2023		2022
		(Unaudited)		(Audited)
		£		£
Non-current assets
Intangible assets	7	30,132,339		27,367,552
Property, plant and equipment	8	2,319,561		1,589,748
		32,451,900		28,957,300
Current assets
Trade and other receivables	9	429,289		808,711
Cash and cash equivalents		7,999,951		13,823,173
		8,429,240		14,631,884
Current liabilities
Trade and other payables	10	(1,373,152)		(1,805,298)
Net current assets		7,056,088		12,826,586
Total assets less current liabilities		39,507,988		41,783,886
Net assets		39,507,988		41,783,886
Capital and reserves
Called up share capital	12	265,535		265,535
Share premium account		18,391,046		18,391,046
Merger relief reserve		17,940,000		17,940,000
Warrant reserve		269,138		269,138
Retained earnings		3,473,768		4,887,594
Translation reserve		(831,499)		30,573
Shareholders' funds		39,507,988		41,783,886

The Notes on pages 11 to 18 form an integral part of these Condensed Consolidated Financial Statements.

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 30 JUNE 2023

 

				Period to		Period to
				30		30
				June		June
				2023		2022
				(Unaudited)		(Unaudited)
				£		£
Cash flows from operating activities
Operating loss for the period				(1,462,689)		(2,109,403)
Adjustments to reconcile loss before tax to net   cash flows:
Depreciation of tangible assets				33,725		8,702
Share-based payment expense				-		707,100
Decrease in trade and other receivables				379,422		74,851
(Decrease)/increase in trade and other payables				(432,146)		86,031
Cash used in operations				(1,481,688)		(1,232,719)
Interest paid				(23)		-
Net cash flows used in operating activities				(1,481,711)		(1,232,719)
Cash flows from investing activities
Purchase of intangible assets				(3,542,389)		(743,899)
Receipt of government grants				129,730		-
Purchase of property, plant and equipment				(884,608)		(279,294)
Cash acquired on acquisition of Taronga				-		102
Interest received				48,886		-
Net cash flows used in investing activities				(4,248,381)		(1,023,091)
Cash flows from financing activities
Issuance of shares (net of issuance costs)				-		18,631,479
Net cash flows generated from financing activities				-		18,631,479
Net (decrease)/increase in cash				(5,730,092)		16,375,669
Cash and cash equivalents at beginning of year				13,823,173		2,503,714
Exchange loss on cash and cash equivalents				(93,130)		(32,225)
Cash at the end of period				7,999,951		18,847,158

The Notes on pages 11 to 18 form an integral part of these Condensed Consolidated Financial Statements.

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE PERIOD ENDED 30 JUNE 2023

 

						Merger
		Share		Share		relief		Warrant		Retained		Translation		Total
		capital		premium		reserve		reserve		earnings		reserve		equity
		£		£		£		£		£		£		£
At 1 January 2022		265,535		18,391,046		17,940,000		269,138		4,887,594		30,573		41,783,886
Loss for the period		-		-		-		-		(1,413,826)		-		(1,413,826)
Other comprehensive loss for
the year		-		-		-		-		-		(862,072)		(862,072)
Total comprehensive loss
for the year		-		-		-		-		(1,413,826)		(862,072)		(2,275,898)
At 30 June 2023		265,535		18,391,046		17,940,000		269,138		3,473,768		(831,499)		39,507,988

The Notes on pages 11 to 18 form an integral part of these Condensed Consolidated Financial Statements.

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 30 JUNE 2022

 

						Merger
		Share		Share		relief		Warrant		Retained		Translation		Total
		capital		premium		reserve		reserve		earnings		reserve		equity
		£		£		£		£		£		£		£
At 1 January 2022		138,868		17,931,296		-		95,372		(10,507,856)		(88,364)		7,569,316
Loss for the period		-		-		-		-		(2,109,403)		-		(2,109,403)
Other comprehensive loss for
the year		-		-		-		-		-		51,628		51,628
Total comprehensive loss
for the year		-		-		-		-		(2,109,403)		51,628		(2,057,775)
Transactions with owners:
Capital reduction		-		(17,931,296)		-		-		17,931,296		-		-
Issuance of shares (net of
issuance costs)		66,667		18,564,812		-		-		-		-		18,631,479
Shares issued to acquire
Taronga		60,000		-		17,940,000		-		-		-		18,000,000
Share-based payments		-		(173,766)		-		173,766		707,100		-		707,100
Total transactions with
owners		126,667		459,750		17,940,000		173,766		18,638,396		-		37,338,579
At 30 June 2022		265,535		18,391,046		17,940,000		269,138		6,021,137		(36,736)		42,850,120

The Notes on pages 11 to 18 form an integral part of these Condensed Consolidated Financial Statements.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 30 JUNE 2023

1.	General Information

The Company is a public company limited by shares, incorporated in England and Wales under the Companies Act 2006. The Company's registered address is First Floor, 47/48 Piccadilly, London, W1J 0DT. First Tin Plc ("the Company'') and its subsidiaries own two advanced tin projects, one in Germany and one in Australia, and is seeking to bring both projects into production in order to be able to deliver a sustainable answer to the material supply issues faced by industrial tin consumers. The condensed consolidated financial statements comprise financial information of the Company and its subsidiaries (the "Group").

2.	Significant accounting policies

2.1

Basis of preparation

The unaudited condensed consolidated financial statements for the period ended 30 June 2023 have been prepared in accordance with the Disclosure and Transparency Rules of the Financial Conduct Authority and International Accounting Standard 34 "Interim Financial Reporting" (IAS 34). Other than as noted below, the accounting policies applied by the Group in the preparation of these condensed consolidated financial statements are the same as those set out in the Group's audited financial statements for the year ended 31 December 2022. These condensed consolidated financial statements have been prepared under the historical cost convention except for certain financial and equity instruments that have been measured at fair value. These condensed consolidated financial statements do not include all of the information required for a complete set of IFRS financial statements. However, selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in the Group's financial position and performance since the audited financial statements for the year ended 31 December 2022. Statutory accounts for the year ended 31 December 2022 have been filed with the Registrar of Companies and the auditor's report was unqualified, did not contain any statement under Section 498(2) or 498(3) of the Companies Act 2006 and did not contain any matters to which the auditors drew attention without qualifying their report. A number of amended standards became applicable for the current reporting period. The Group did not have to change its accounting policies or make retrospective adjustments as a result of adopting these amended standards. The condensed consolidated financial statements are unaudited and were approved by the Board of Directors on 21 September 2023.

2.	Significant accounting policies (continued)

2.2

Going concern

The Group currently has no income and meets its working capital requirements through raising development finance. In common with many businesses engaged in exploration and evaluation activities prior to production and sale of minerals the Group will require additional funds and/or funding facilities in order to fully develop its business plan. Ultimately the viability of the Group is dependent on future liquidity in the exploration and study period and this, in turn, depends on the availability of external funding. During 2022 the Company's shares were admitted to trading on the London Stock Exchange raising equity of £20 million. At 30 June 2023, the Group had cash of £8.0 million (31 December 2022: £13.8 million). The Directors have prepared financial projections and plans for a period of at least 12 months from the date of approval of these condensed consolidated financial statements. It is anticipated that additional capital will need to be raised by the end of the second quarter of 2024 in order to continue to fund the Group's activities at their planned levels beyond this date. This represents a material uncertainty that may cast significant doubt the Group's ability to continue as a going concern. However, the Directors have a reasonable expectation that this uncertainty can be managed to a successful outcome, and based on that assessment, the Group will have adequate resources to continue in operational existence for the foreseeable future. Accordingly, these condensed consolidated financial statements have been prepared on the going concern basis. The condensed consolidated financial statements do not reflect any adjustments that would be required to be made if they were to be prepared on a basis other than the going concern basis.

3.	Critical accounting estimates and judgements

The preparation of the Group's condensed consolidated financial statements requires the Directors to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities. Estimates and judgements are continually evaluated and are based on historical experience and other factors including expectations of future events that are believed to be reasonable under the circumstances. Actual results may differ from these estimates. Critical judgements and areas where the use of estimates is significant are set out in the audited consolidated financial statements for the year ended 31 December 2022.

4.	Segmental reporting

In the opinion of the Board of Directors the Group has one operating segment, being the exploitation of mineral rights. The Group also analyses and measures its performance into geographic regions, specifically Germany and Australia. Non-current assets by region are summarised below:

						30		31
						June		December
						2023		2022
						£		£
	Germany					7,607,921		6,824,224
	Australia					24,843,979		22,133,076
						32,451,900		28,957,300

5.	Loss per Ordinary share

				Period to		Period to
				30		30
				June		June
				2023		2022
				£		£
	Loss for the period attributable to the ordinary
	equity holders of the Company (£)			(1,413,826)		(2,109,403)
	Basic loss per Ordinary share
	Weighted average number of Ordinary shares
	in issue			265,534,972		197,275,713
	Basic loss per Ordinary share (pence)			(0.53)		(1.07)
	Diluted loss per Ordinary share
	Weighted average number of Ordinary shares
	in issue			265,534,972		197,734,041
	Diluted loss per Ordinary share (pence)			(0.53)		(1.07)

For diluted loss per share, the weighted average number of ordinary shares in issue is adjusted to assume conversion of all potential dilutive warrants and options over ordinary shares. Potential ordinary shares resulting from the exercise of warrants and options have an anti-dilutive effect due to the Group being in a loss position. As a result, diluted loss per share is disclosed as the same value as basic loss per share.

6.	Share-based payments

Share options and warrants

The following table shows the movements in the share-based payment reserve during the period:

		No. of		No. of		No. of		No. of
		options		options		warrants		warrants
		at 30		at 31		at 30		at 31
		June		December		June		December
		2023		2022		2023		2022
		£		£		£		£
	Outstanding at beginning of period	10,060,000		1,560,000		5,668,000		3,168,000
	Granted during the period	-		8,500,000		-		2,500,000
	Expired during the period	-		-		-		-
	Outstanding at the end of the period	10,060,000		10,060,000		5,668,000		5,668,000
	Exercisable at the end of the period	10,060,000		10,060,000		5,668,000		5,668,000
	Weighted average exercise price (pence)	30		30		26		26

Impact on the statement of comprehensive income

Share options The Group recognised a charge of £nil in profit or loss for the six-month period ended 30 June 2023 (period ended 30 June 2022: £707,100). The expense is comprised of £nil (2022: £582,317) relating to directors (see Note 11) and £nil (2022: £124,783) relating to staff and consultants. Share warrants The Group recognised a charge of £nil in share premium for the six-month period ended 30 June 2023 (period ended 30 June 2022: £173,766).

7.	Intangible assets

								Exploration
								and
								evaluation
								assets
								£
	Cost At 1 January 2021 Additions Currency translation At 31 December 2021
	At 1 January 2022							3,380,913
	Additions							5,288,557
	Acquisition of Taronga							18,558,503
	Currency translation							139,579
	At 31 December 2022							27,367,552
	Additions							3,542,389
	Government grant							(129,730)
	Currency translation							(647,872)
	At 30 June 2023							30,132,339

The intangible assets relate to the Tellerhäuser and Taronga tin projects located in southern Saxony in the east of Germany and Australia, respectively. The Directors assess for impairment when facts and circumstances suggest that the carrying amount of an Exploration and evaluation ("E&E") asset may exceed its recoverable amount. In making this assessment, the Directors have regard to the facts and circumstances noted in IFRS 6 paragraph 20. In performing their assessment of each of these factors, at 30 June 2023, the Directors have: a)   reviewed the time period that the Group has the right to explore the area and noted no instances of expiration, or licences that are expected to expire in the near future and not be renewed; b)   determined that further E&E expenditure is either budgeted or planned for all licences; c)   not decided to discontinue exploration activity due to there being a lack of quantifiable mineral resource; and d)   not identified any instances where sufficient data exists to indicate that there are licences where the E&E spend is unlikely to be recovered from successful development or sale. On the basis of the above assessment, the Directors are not aware of any facts or circumstances that would suggest the carrying amount of the E&E asset may exceed its recoverable amount.

8.	Property, plant and equipment

			Land &		Motor		Fixtures &
			Buildings		Vehicles		Fittings		Total
			£		£		£		£
	Cost
	At 1 January 2022		-		38,803		37,797		76,600
	Additions		415,220		110,583		75,104		600,907
	Acquisition of Taronga		965,939		-		34,202		1,000,141
	Currency translation		(21,179)		1,658		3,119		(16,402)
	At 31 December 2022		1,359,980		151,044		150,222		1,661,246
	Additions		839,761		18,801		26,046		884,608
	Currency translation		(108,645)		(8,400)		(6,884)		(123,929)
	At 30 June 2023		2,091,096		161,445		169,384		2,421,925
	Depreciation
	At 1 January 2022		-		17,567		30,182		47,749
	Charge for year		-		9,334		11,263		20,597
	Currency translation		-		1,160		1,992		3,152
	At 31 December 2022		-		28,061		43,437		71,498
	Charge for year		-		21,950		11,775		33,725
	Currency translation		-		(1,300)		(1,559)		(2,859)
	At 30 June 2023		-		48,711		53,653		102,364
	Net book value
	At 30 June 2023		2,091,096		112,734		115,731		2,319,561
	At 31 December 2022		1,359,980		122,983		106,785		1,589,748

9.	Trade and other receivables

		30		31
		June		December
		2023		2022
		£		£
	Prepayments and other receivables	303,176		386,287
	Recoverable value added taxes	126,113		422,424
		429,289		808,711

10.	Trade and other payables

		30		31
		June		December
		2023		2022
		£		£
	Trade payables	1,080,926		761,512
	Accruals	260,864		949,004
	Other payables	31,362		94,782
		1,373,152		1,805,298

11.	Related party transactions

Directors' remuneration and fees The table below sets out the Directors' remuneration and fees:

	Six months ended 30 June 2023						Share based
					Fees		payments		Total
					£		£		£
	Mr T Buenger				143,460		-		143,460
	Mr C Cannon Brookes*				17,500		-		17,500
	Ms C Apthorpe				20,000		-		20,000
	Mr S Cornelius				22,500		-		22,500
	Mr I Hofmaier				22,500		-		22,500
	Mr N Mather**				13,808		-		13,808
					239,768		-		239,768

	*    Fees relating to Mr C Cannon Brookes are paid to Arlington Group Asset Management Limited. ** Fees relating to Mr N Mather are paid to Samuel Capital Pty.

11.	Related party transactions (continued)

Directors' remuneration and fees (continued)

	Six months ended 30 June 2022						Share based
					Fees		payments		Total
					£		£		£
	Mr T Buenger				124,112		374,347		498,459
	Mr C Cannon Brookes*				11,750		-		11,750
	Mr A M J Collette				3,000		33,275		36,275
	Mr S L Fabian				6,000		8,319		14,319
	Mr M E Thompson				3,000		83,188		86,188
	Mr A J Truelove				23,573		83,188		106,761
	Ms C Apthorpe				9,128		-		9,128
	Mr S Cornelius				10,269		-		10,269
	Mr I Hofmaier				10,269		-		10,269
					201,101		582,317		783,418
	* Fees relating to Mr C Cannon Brookes are paid to Arlington Group Asset Management Limited.

Other fees and transactions Mr C Cannon Brookes was a director of Arlington Group Asset Management Limited ("Arlington") for the period under review. During the period, Arlington invoiced and was paid £25,000 in respect of advisory fees (six months ended 30 June 2022: £821,754 in respect of fund-raising commissions, advisory fees and expenses). In the six months ended 30 June 2022, Arlington was granted 2,500,000 warrants, with an exercise price of 33 pence, exercisable over a period of two years from the date of grant. The Group recognised a charge against share premium of £176,766 in respect of these warrants. No warrants were issued during the current period.

12.	Share capital

		30		31
		June		December
		2023		2022
		£		£
	Allotted, called up and fully paid
	265,534,972 (2022: 265,534,972) Ordinary shares of £0.001 each	265,535		265,535

The shares have attached to them full voting, dividend and capital distribution (including on winding up) rights; they do not confer any rights of redemption.

13.	Ultimate controlling party

In the opinion of the Directors, there is no controlling party.

DIRECTORS, SECRETARY AND ADVISERS

Directors	C Cannon Brookes (Non-executive Chairman)
	T Buenger (Chief Executive Officer)
	C Apthorpe (Non-executive Director)
	S Cornelius (Non-executive Director)
	I Hofmaier (Non-executive Director)
	N Mather (Non-executive Director)
Company Secretary	R G J Ainger
Registered Office	First Floor
	47/48 Piccadilly
	London, W1J 0DT
Independent Auditor	Crowe U.K. LLP
	55 Ludgate Hill
	London, EC4M 7JW
Financial Advisor / Joint Broker	Arlington Group Asset Management Limited
	47/48 Piccadilly
	London, W1J 0DT
Joint Broker	WH Ireland Group plc
	24 Martin Lane
	London, EC4R 0DR
Financial Public Relations	SEC Newgate UK Limited
	14 Greville Street
	London, EC1N 8SB
Legal Advisers to the Company	Charles Russell Speechlys LLP
	5 Fleet Place
	London, EC4M 7RD
Registrars	Share Registrars Limited
	3 The Millenium Centre
	Crosby Way
	Farnham, GU9 7XX

 

END