Half-year Report

Metals One PLC
28 September 2023
 

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28 September 2023 

 

Metals One Plc

("Metals One" or the "Company")

 

Half-Year Report

 

Metals One, which is advancing battery metal projects at brownfield sites in Finland and Norway, today announces its unaudited interim results for the six months ended 30 June 2023. These results will shortly be made available on the Company's website at www.metals-one.com.

 

Alastair Clayton, Chairman of Metals One, commented:

 

"The six-month period ended 30 June 2023 was incredibly busy for the Company as it worked towards completion of its IPO and concurrent acquisitions of European brownfield battery metals projects which occurred after the reporting period.

 

Metals One has listed with interests in nickel projects with substantial exploration carry exposure through farm-ins at a critical time for battery metals driven by the continued rise in electric vehicle adoption globally.

 

With European brownfield projects, experienced partners, and funded work programmes in place, our projects are well positioned for rapid advancement as we seek to establish ethically mined sources of critical minerals, including nickel, in Europe, close to future customers.

 

Exploration in Norway is well underway with Kingsrose, whilst in Finland we are finalising plans to commence phase one drilling in the near future. We look forward to updating shareholders on further news as we continue our work programmes."

 

 

Enquiries:

 



Metals One Plc



Jonathan Owen, Chief Executive Officer

via Vigo Consulting

+44 (0)20 7390 0234

 


 

 



Beaumont Cornish Limited (Nominated Adviser)

James Biddle / Roland Cornish

www.beaumontcornish.com

 

 

+44 (0)20 7628 3396


Shard Capital Partners LLP (Joint Broker)

Damon Heath / Erik Woolgar

 

+44 (0)20 7186 9952

 

 





SI Capital Limited (Joint Broker)

+44 (0)14 83413 500


Nick Emerson

 

 



Vigo Consulting (Investor Relations)

Ben Simons / Kendall Hill

metalsone@vigoconsulting.com

 

+44 (0)20 7390 0234

 

 

 

 

About Metals One

 

Metals One is developing brownfield battery metals projects in Finland (Black Schist Project) and Norway (SRH Råna Project), with approximately £9 million of exploration carry exposure through farm-in agreements. Metals One is aiming to help meet the significant demand for battery metals by defining resources on the doorstep of Europe's major electric vehicle OEMs and battery manufacturers. Metals One's Black Schist Project in Finland, totalling 706 km2 across three licence areas, has an Inferred Resource of 28.1 Mt nickel-zinc-cobalt-copper and is located adjacent to Talvivaara, Europe's largest operating nickel mine. Metals One's fully carried SRH Råna Project in Norway covers 18.14 km² across three contiguous exploration licences, with significant opportunity for brownfield exploration of the Råna intrusion, and proven potential for massive sulphide nickel-cobalt-copper mineralisation.

 

Follow us on social media:

 

LinkedIn: https://www.linkedin.com/company/metals-one-plc/

Twitter: https://twitter.com/metals_one

 

Subscribe to our news alert service on the Investors page of our website at: www.metals-one.com

 

Chairman's Statement

 

Introduction

 

I am pleased to present the first financial report of Metals One since its admission to the London Stock Exchange AIM market.

 

The six-month period ended 30 June 2023 was incredibly busy for the Company as it worked towards completion of its IPO and concurrent acquisitions of European brownfield battery metals projects which occurred after the reporting period.

 

On 31 July 2023, the Company completed the acquisition of FinnAust Mining Northern Oy ("FAMN"), the 100% owner of the Paltamo and Rautavaara Nickel-Zinc-Copper-Cobalt ("Ni-Zn-Cu-Co") projects (the "Black Schist Project") in the Kainuu Black Schist Belt in eastern Finland, from AIM-listed Bluejay Mining Plc (AIM: JAY), as well as the acquisition of Scandinavian Resource Holdings ("SRH"), which holds 80% of the Råna Project in Northern Norway through a Joint Venture ("JV") with Kingsrose Mining Ltd (ASX: KRM) ("Kingsrose").

 

On the same date, the Company completed its listing on the AIM market of the London Stock Exchange, having raised £2.2 million for working capital for the Company and its projects; therefore, the accounts presented below do not include the proceeds from the £2.2 million gross capital raise completed post-period end.

 

The Company presents its interim results for the six month period ended 30 June 2023 along with the interim results for the Company's group companies, FAMN in Appendix 1 and SRH in Appendix 2, for the same period.

 

Finland - Black Schist Ni-Zn-Cu-Co Project

Inferred Mineral Resource of 28.1 Mt at a grade of 0.19% Ni (53,800t), 0.10% Cu (27,900t), 0.01% Co (3,400t) and 0.38% Zn (180,000t) at Rautavaara

 

The Black Schist Project in Finland comprises two exploration permit applications (with pending extensions), being Rauta 9-11, and Paltamo (P5) (the "Paltamo Project"). There is a further exploration permit application for Rautavaara S (R1) which is located adjacent to Rauta 9-11 (which is referred to alongside Rauta 9-11 as the "Rautavaara Project").

 

The Rautavaara and Paltamo Projects are located in the Northern Savonia and Kainuu regions respectively of eastern Finland, adjacent to Europe's largest operating nickel mine, Talvivaara. The primary exploration model Metals One is pursuing at the Black Schist Project is for Talvivaara-style shale-hosted Ni-Zn-Cu-Co deposits. Metals One is also open to exploration for Outokumpu-style Ni-Zn-Cu-Co volcanogenic massive sulphide deposits.

 

The Company has entered into an agreement in relation to its Black Schist Project, pursuant to which AIM-listed Gunsynd Plc (AIM: GUN) has agreed to acquire up to 25% for a staged investment of up to £1 million.

 

Norway - SRH Råna Ni-Cu-Co Project

Brownfield exploration of Råna Intrusion - fully carried

 

The Company's assets in Norway consist of an 80% interest in the Råna Project (Ni-Cu-Co) located on the southern shores of the Ofotfjord and situated approximately 20 km to the southwest of the port town of Narvik. The Råna Project consists of contiguous exploration permits with a total area of 18.14 km2 that cover the northern and northwestern parts of the Råna mafic to ultramafic Intrusion ("Råna Intrusion"). The project has proven potential for massive sulphide Ni-Cu-Co mineralisation.

 

The Company's interest in the Råna Project is owned through a JV with Kingsrose, who are operator of the project and have a right to earn up to 75% over eight years through staged expenditure of up to A$15 million.

 

Metals One announced an update from diamond drilling on 4 September 2023. Results confirmed the presence of high-grade semi-massive Ni-Cu-Co sulphide mineralisation, and a broad zone of disseminated sulphide mineralisation at Bruvann, located within the Arnes prospect, whilst demonstrating that mineralisation in the area is open along strike from existing mine infrastructure.

 

Highlights included:

 

·    2.5m at 1.00% Ni, 0.14% Cu and 0.08% Co from 172.91m (Hole 23BRU001), including 1.0m at 1.94% Ni, 0.18% Cu and 0.18% Co from 173.91m

This intercept is located 20m southwest and along strike from an historical massive sulphide drill intercept, located 70m south of the inferred position of historical underground workings.

 

·    50m at 0.43% Ni, 0.10% Cu and 0.02% Co from 470.6m (Hole 23BRU003)

This intercept is located 20m down dip from broad zones of mineralisation identified in historical drilling and underground mining, which is open and undrilled to the west and down dip.

 

Having recently completed in September 2023 a site visit to our Råna Project, I am pleased to confirm that the operator is progressing the work programme to plan. We witnessed initial drilling of a new Rånbogen target, close to outcropping mineralisation, and observed the ongoing downhole electromagnetic surveys at the prospect, following up on geophysical surveys that identified conductive zones highly prospective for massive sulphide Ni-Cu-Co mineralisation.

 

At the Bruvann target, we inspected the high-grade massive sulphide Ni-Cu-Co interceptions reported in hole 23BRU001, and the disseminated sulphide mineralisation reported in hole 23BRU003.

 

 

Conclusion

 

Metals One has listed with interests in battery metals project with substantial exploration carry exposure through farm-ins at a critical time for the sector driven by the continued rise in electric vehicle adoption globally.

 

With European brownfield projects, experienced partners, and funded work programmes in place, our projects are well positioned for rapid advancement as we seek to establish ethically mined sources of critical minerals, including nickel, in Europe, close to future customers.

 

Exploration in Norway is well underway with Kingsrose, whilst in Finland we are finalising plans to commence phase one drilling. We look forward to updating shareholders on further news as we continue our work programmes.

 

I would like to thank the team at Metals One and its advisers for their hard work leading up to the IPO and project acquisitions, and also our shareholders for their continued support of the Company's strategy.

 

 

 

Alastair Clayton

Chairman

 

 

 

STATEMENT OF PROFIT AND LOSS

 



Unaudited

Unaudited

 

 

 

 

 

6 months ending 30 June 2023

6 months ending 30 June 2022


 

Note

£

£

Continuing operations




  Other income


-

29,646

  Administrative expenses

3

(118,893)

(184,017)

Operating (loss)/ profit

 

(118,893)

(154,371)

 (Loss) / Profit before taxation


(118,893)

(154,371)

 Income tax expense


-

-

 (Loss)/ profit for the period from continuing operations


(118,893)

(154,371)

 Other comprehensive income


-

-

Total comprehensive profit for the period attributable to shareholders from continuing operations


(118,893)

(154,371)





Basic and dilutive earnings per share - pence

4

(0.6)

(0.83)

 

 

The accompanying notes form an integral part of the Interim Financial Information.

 

STATEMENT OF FINANCIAL POSITION

 

 



Unaudited

Audited


Note

As at

30 June 2023
£

As at

31 Dec 2022
£

Current Assets

 

 

 

   Other current assets


10,043

66,188

   Cash and cash equivalents


15,263

39,875

Total Current Assets

 

25,306

106,063

Total Assets

 

25,306

106,063

Equity




  Share capital

5

197,500

197,500

  Share premium

5

374,259

374,259

  Retained earnings


(730,935)

(612,041)

Total Equity

 

(159,176)

(40,282)

Current Liabilities




    Trade and other payables


184,482

146,345

Total Current Liabilities

 

184,482

146,345

Total Liabilities

 

184,482

146,345

Total Equity and Liabilities

 

25,306

106,063

 

 

The accompanying notes form an integral part of the Interim Financial Information.

 

STATEMENT OF CHANGES IN EQUITY

 

 


Share Capital
£

Share Premium
£

Retained Earnings
£

Total Equity
£

Balance at 31 December 2021

172,500

299,259

(358,375)

113,384






Loss for period

-

-

(253,666)

(253,666)

Total comprehensive income for year

-

-

(253,666)

(253,666)






Transactions with owners in own capacity





Ordinary shares issued in period

25,000

75,000

-

100,000

Share Issue Costs

-

-

-

-

Transactions with owners in own capacity

25,000

75,000

-

100,000

Balance at 31 December 2022

197,500

374,259

(612,041)

(40,282)

 


 

 

 

 

Loss for period

-

-

(118,893)

(118,893)

Total comprehensive income for period

-

-

(118,893)

(118,893)

 





Transactions with owners in own capacity




Ordinary shares issued in period

-

-

-

-

Share Issue Costs

-

-

-

-

Transactions with owners in own capacity





Balance at 30 June 2023

197,500

374,259

(730,934)

(159,175)

 

 

 

The accompanying notes form an integral part of the Interim Financial Information.

 


 

STATEMENT OF CASH FLOWS

 

 

 


Unaudited

Unaudited

 


6 months ending 30 June 2023

6 months ending 30 June 2022

 

Note



Cash flow from Operating Activities




  (Loss)/Profit for the financial year


(118,893)

(154,371)

Adjustments for:




Changes in working capital:




 Increase in trade and other receivables


                                      56,144

(128,775)

 Increase in trade and other payables


                                      38,137

  137,800

Net cash used in operating activities


(24,612)

(145,346)





Cash flow from Financing Activities




Net proceeds of share issue


-

100,000

Net cash used in financing activities

 

-

100,000





Net increase in cash and cash equivalents


(24,612)

(45,346)

Cash and cash equivalents at beginning of period


39,875

174,684

Cash and cash equivalents at the end of the period


15,263

129,338

 

 

 

The accompanying notes form an integral part of the Interim Financial Information

 

 

NOTES TO THE INTERIM FINANCIAL STATEMENTS

 

1              General information

Metals One plc, a public limited Company was incorporated on 26th January 2021 in England and Wales with Registered Number 13158079 under the Companies Act 2006. The address of its registered office is Eccleston Yards, 25 Eccleston Place, London SW1W 9NF, United Kingdom.

 

The principal activity of the Company is mining exploration for battery metals.

2              Basis of preparation and accounting Policies

IAS 8 requires that management shall use its judgement in developing and applying accounting policies that result in information which is relevant to the economic decision-making needs of users, that are reliable, free from bias, prudent, complete and represent faithfully the financial position, financial performance and cash flows of the entity.

 

The same accounting policies, presentation and methods of computation have been followed in these Condensed Interim Financial Information as were applied in the preparation of Metals One PLC's Audited Accounts for the period ended 31 December 2022, except for the impact of the adoption of the Standards and interpretations described below and new accounting policies adopted as a result of changes in the Company.

 

On 31 July 2023 Metals One PLC acquired the share capital of Scandinavian Resource Holdings (SRH) and Finaust Northern Mining Oy (FAMN). The Condensed Interim Financial Report for 30 June 2023 has not been prepared on a consolidated basis to include financial information on SRH and FAMN. The Interim Reports for SRH and FAMN have been included in the appendices of this report as stand-alone entities and will be consolidated for the year ended 31 December 2023.

 

2.1          Going concern

The interim financial statements have been prepared under the going concern assumption, which presumes that the Company will be able to meet its obligations as they fall due for the foreseeable future.

 

At 30 June 2023 the Company had cash reserves of £15,263 (31 December 2022: £39,875).

 

Subsequent to the end of the period the Company successfully listed on AIM stock exchange and raised gross proceeds of £2,200,000 through the issue of 44,000,000 ordinary shares. Refer to note 9 for further information.

 

The Directors have made an assessment of the Company's ability to continue as a going concern and are satisfied that the Company has adequate resources to continue in operational existence for the foreseeable future. The Company, therefore, continues to adopt the going concern basis in preparing its consolidated financial statements.

 

The financial information of the Company is presented in British Pounds Sterling (£)

 

2.2          New standards, amendments and interpretations

Standards and interpretations issued and not yet effective:

 

Standards, amendments and interpretations that are not yet effective and have not been early adopted are as follows:

 

Standard  

Impact on initial application

Effective date

IFRS 16

Lease Liability in a Sale and Leaseback

(Amendment to IFRS 16)

1 January 2024

IAS 7

Financial instruments : Disclosures

1 January 2024

IAS 1

Classification of Liabilities as Current or Non-Current.

1 January 2024

 

Standards and interpretations adopted in the period

 

There have been no new or amended standards adopted by the Company for the first time during the interim period.

 

2.3          Critical accounting estimates and judgements

The preparation of interim consolidated financial information requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities and the reported amounts of income and expenses during the reporting period. Although these estimates are based on management's best knowledge of current events and actions, the resulting accounting estimates will, by definition, seldom equal related actual results.

 

In preparing the interim financial information, the significant judgements made by management in applying the Company's accounting policies and the key sources of estimation uncertainty were the same as those that applied to the financial statements for the year ended 31 December 2022.

 

3              Administrative expenses


 

 

6 months ending 30 June 2023

6 months ending 30 June 2022

Directors remuneration


6,400


Consulting and advisory fees


32,167

8,257

Legal Fees


-

23,689

Accounting fees


77,500

86,858.

Exchange fees


-

-

Exploration Costs


-

3,656

Other expenditure


2,826

38,085

Closing balance


118,893

184,017

 

4              Earnings per share

The calculation of the basic and diluted earnings per share is calculated by dividing the loss attributable to equity holdings of Metals One by the weighted average number of ordinary shares in issue during the period.

 



6 months ending 30 June 2023

6 months ending 30 June 2022

(Loss)/ Profit  attributable to equity holdings of Metals One


(118,893)

(154,371)

Weighted number of ordinary shares in issue 


19,750,000

18,597,222

Basic & dilutive earnings per share from continuing operations - pence


(0.60)

(0.83)

 

There is no difference between the diluted loss per share and the basic loss per share presented as there are no dilutive financial instruments.

5              Share capital

 

Number of shares

Ordinary shares

Share premium

Total

 


£

£

£

Balance at 31 December 2021

17,250,000

172,500

299,259

471,759

 

Proceeds from shares issued

2,500,000

25,000

75,000

100,000

Balance at 31 December 2022

19,750,000

197,500

374,259

571,759

Movement during the period

-

-

-

-

Balance at 30 June 2023

19,750,000

197,500

374,259

571,759

 

6              Related party transactions

Provision of services

 

During the period £15,000 (2022: £57,108) was incurred for the provision of corporate finance services from Orana Corporate LLP, an entity related to director Daniel Maling. These services relate to management of the IPO as well as provision of accounting and company secretarial services.  £14,573 (2022 :£17,200) was incurred for consulting and director fees from director Jonathan Owen.

 

7              Capital Commitments

 

There were no commitments under operating leases at 30 June 2023.

8              Contingent Liabilities

Following the successful IPO subsequent to the end of the period, the following contingent liabilities exist for Metals One to the respective entities:

 

3 Mile Beach Limited

-       £875,000 payable in shares contingent on completion of proposed transaction

-       £135,000 payable in cash on completion of proposed transaction

 

Bluejay Mining Plc

-       £3,125,000 payable in shares contingent on completion of proposed transaction

-       £150,000 payable in cash on completion of proposed transaction

-       £1,000,000 payable in shares on certain milestones

 

Scandinavian Resource Holdings Pty Ltd

-       £3,000,000 payable in shares contingent on completion of proposed transaction £100,000 payable in cash on completion of proposed transaction

-       £250,000 in stage 1 deferred consideration payable upon Kingsrose Mining Limited completing 5,000 metres of drilling in respect of Licenses to assess nickel sulphides

-       £250,000 in stage 2 deferred consideration payable upon Kingsrose Mining Limited spending an additional $4 million after completion of Stage 1

 

These amounts were contingent on the successful admission of the Company to trading on AIM ("proposed transaction") which completed on 31 July 2023.

 

Other than those listed above there were no further contingent liabilities at 30 June 2023.

 

 

 

 

 

9              Events subsequent to period end

 

Fundraising and Initial Public Offering (IPO) on AIM market

 

On 31 July 2023 the Company completed its Initial Public Offering (IPO) and listed on the AIM market. The Company raised gross proceeds of £2,200,000 through the issue of 44,000,000 shares at £0.05p per share.

 

As part of the IPO the Company agreed to grant the below Warrants.

 

 

Warrant Issue

Number of Warrants

Date of Grant

Exercise Price

Exercise Period

Founder Warrants

7,000,000

Date of Admission

Fundraising Price

From date of Admission until 2nd anniversary of Admission

Loyalty Warrants

22,000,000

Date of Admission

£0.09

2 years from Admission

SI Capital Warrants

293,000

Date of Admission

Fundraising Price

2 years from Admission

Shard Capital Warrants

610,300

Date of Admission

Fundraising Price

3 years from Admission

BCL Warrants

2,000,000

Date of Admission

Fundraising Price

5 years from Admission

Orana Warrants

2,084,500

Date of Admission

Fundraising Price

5 years from Admission

Gunsynd Warrants

1,500,000

Date of Admission

Fundraising Price

3.5 years from Admission

SRH Warrants

7,500,000

Date of Admission

£0.09

5 years from Admission

FinnAust Warrants

7,500,000

Date of Admission

£0.09

5 years from Admission

Fee Warrants

2,350,000

Date of Admission

£0.09

2 years from Admission

TOTAL:

52,873,500   

 

 

 

Appointment of directors

 

Upon the successful admission to the AIM market the following people were appointed as directors of the Company:

 

·      Alastair Raoul Clayton (Non-Executive Chairman)

·      Craig Moulton (Independent Non-Executive Director)

·      Sara Katja Emilia Minchin (Independent Non-Executive Director)

·      Kaj Thomas Levin (Non-Executive Director)

·      Winton William Willesee (Non-Executive Director)

 

Acquisition of  Scandinavian Resource Holdings (SRH) and Finaust Northern Mining Oly (FMN)

On 31 July 2023 the Company entered into the FMN SPA, to acquire the entire issued share capital of FMN (an indirect subsidiary of AIM traded Bluejay Mining Plc and the current holder of exploration permit applications with respect to the Black Schist Project in Finland), and the SRH SPA to acquire the entire issued share capital of SRH (the holder of a 80% interest in the SRH JVCo, which holds a 100% legal and beneficial interest in the Brownfield Råna Project in Norway).

 

The Company has entered into a subscription and shareholders' agreement in relation to FinnAust, pursuant to which AIM traded Gunsynd has agreed to conditionally subscribe for such number of shares in the capital of FinnAust as is equal to 25% of the voting rights of FinnAust, at an aggregate subscription price of £1,000,000.

 

Meanwhile SRH has, pursuant to the Kingsrose Agreement, agreed to Kingsrose or the Kingsrose Nominee gaining an increasing equity interest in the SRH JVCo over four potential stages, subject to meeting expenditure obligations in relation to the Brownfield Råna Project and certain other obligations.

 

Accordingly, on Admission, the Company will initially hold an 80% beneficial interest in the Brownfield Råna Project which could be diluted to a 15% beneficial interest on full satisfaction and completion of the four potential farm-in stages pursuant to the Kingsrose Agreement and a 100% beneficial interest in the Black Schist Project which could be diluted to a 75% beneficial interest pursuant to the Gunsynd Farm-In.

 

The initial estimate of the fair value of the assets acquired and liabilities assumed of SRH at the date of acquisition based upon the SRH balance sheet at 31 July 2023 are as follows:


£

Trade and other receivables

31,689

Cash and cash equivalents

52

Exploration assets

11,846

Total identifiable net assets acquired

43,587



Consideration

3,811,651



Goodwill acquired

3,768,063

 

 

The initial estimate of the fair value of the assets acquired and liabilities assumed of FMN at the date of acquisition based upon the FMN balance sheet at 31 July 2023 are as follows:

 


£

Trade and other receivables


Cash and cash equivalents

7,055

Trade and other payables

(5,694)

Total identifiable net assets acquired

1,361



Consideration

5,496,452


 

Goodwill acquired

5,495,091

 

 

APPENDIX 1

FINNAUST MINING NORTHERN OY ("FAMN")

STATEMENT OF PROFIT AND LOSS

 



Unaudited

6 months ending
30 June 2023

Unaudited

6 months ending
30 June 2022

 

Note

£

£

Continuing Operations

 



Administrative expenses

 

(247)

(253)

Operating loss

 

(247)

(253)

Loss before taxation

 

 

 

Income tax expense

 

-

-

Loss for the period from continuing operations

 

 

(247)

(253)

Other comprehensive income

 

(4,090)

(277)





Total comprehensive profit for the period
attributable to shareholders from continuing operations

 

(4,337)

(530)

 


 

 

Basic & dilutive earnings per share - pounds

6

(2.47)

(2.53)

 

 

The accompanying notes form part of the Interim Financial Information.

 

FINNAUST MINING NORTHERN OY

STATEMENT OF FINANCIAL POSITION

 

 



Unaudited

As at

30 June 2023

Unaudited

As at

31 Dec 2022

 

Note

£

£

CURRENT ASSETS

 



Cash and cash equivalents

 

7,083

9,244

Total current assets

 

7,083

9,244

TOTAL ASSETS

 

7,083

9,244

EQUITY

 

 

 

Share capital

7

2,055

2,055

Other reserves

 

3,079,029

3,079,029

Foreign Exchange Reserve

 

153,009

157,160

Retained Earnings

 

(3,232,753)

(3,234,950)

TOTAL EQUITY

 

1,340

3,294

 

 

 

 

CURRENT LIABILITIES

 



Borrowings

 

5,743

5,950

TOTAL CURRENT LIABILITIES

 

5,743

5,950

TOTAL LIABILITIES

 

5,743

5,950

TOTAL EQUITY AND LIABILITIES

 

7,083

9,244

 

 

 

The accompanying notes form part of the Interim Financial Information.

 

 

 

 

 

 

 

 

FINNAUST MINING NORTHERN OY

STATEMENT OF CASH FLOWS

 


Unaudited

6 months ending
30 June 2023

Unaudited

6 months ending
30 June 2022

 

£

£

Cash flow from operating activities



Loss for the period

(247)

(253)

Adjustments for:



Changes in working capital:



Increase in trade and other payables

(1,860)

650

Net cash outflow from operating activities

(2,107)

397




 



Net decrease in cash and cash equivalents

(2,107)

397

Cash and cash equivalents at beginning of the period

9,244

8,631

Foreign exchange impact on cash

(54)

66

Cash and cash equivalents at end of the period

7,083

9,094

 

 

 

 

 

 

The accompanying notes form part of the Interim Financial Information

 

 

 

FINNAUST MINING NORTHERN OY

NOTES TO THE INTERIM FINANCIAL STATEMENTS

 

1              General information

FinnAust Mining Northern Oy ("FAMN") is a Finnish limited company (2352762-2) incorporated under the Finnish Limited Liability Companies Act. FAMN was incorporated on 16 August 2010.

 

The principal activity of FAMN is to seek suitable investment opportunities to explore & develop assets in the natural resources sector.

2              Basis of preparation and accounting policies

IAS 8 requires that management shall use its judgement in developing and applying accounting policies that result in information which is relevant to the economic decision-making needs of users, that are reliable, free from bias, prudent, complete and represent faithfully the financial position, financial performance and cash flows of the entity.

 

The same accounting policies, presentation and methods of computation have been followed in these Condensed Interim Financial Information as were applied in the Historical Financial Information including in the Metals One PLC admission document except for the impact of the adoption of the Standards and interpretations described below and new accounting policies adopted as a result of changes in the Company.

 

 The Condensed Interim Financial Information is presented in £ unless otherwise stated, which is FAMN's presentational currency. FAMN's functional currency is the Euro.

 

3              Going concern

The Condensed Interim Financial Information has been prepared on a going concern basis, which assumes that FAMN will have access to sufficient liquid resources to enable them to continue in operational existence for the foreseeable future and not less than twelve months from the date of signing this report.

 

Taking these matters into consideration, the Directors consider that the continued adoption of the going concern basis is appropriate having reviewed the forecasts for the coming 18 months and the Condensed Interim Financial Information does not reflect any adjustments that would be required if they were to be prepared other than on a going concern basis.

4              New standards , amendments and interpretations

Standards and interpretations adopted in the period

There were no new standards or interpretations adopted by the Company in the period.

Standards and interpretations issued and not yet effective:

Standards, amendments and interpretations that are not yet effective and have not been early adopted are as follows:

 

Standard  

Impact on initial application

Effective date

IFRS 16

Lease Liability in a Sale and Leaseback

(Amendment to IFRS 16)

1 January 2024

IAS 7

Financial instruments : Disclosures

1 January 2024

IAS 1

Classification of Liabilities as Current or Non-Current.

1 January 2024

 

5              Critical accounting estimates and judgments

In preparing the Condensed Interim Financial Information, the directors have to make judgments on how to apply the Company's accounting policies and make estimates about the future. Estimates and judgements are continuously evaluated based on historical experiences and other factors, including expectations of future events that are believed to be reasonable under the circumstances. In the future, actual experience may deviate from these estimates and assumptions.

 

The directors have concluded that there are no key assumptions concerning sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

6              Earnings per share

The calculation of the basic and diluted earnings per share is calculated by dividing the profit attributable to equity holdings of FAMN by the weighted average number of ordinary shares in issue during the period.


30 June 2023

30 June 2022

 

£

£

Loss attributable to shareholders of FAMN

(247)

(253)

Weighted number of ordinary shares in issue

100

100

Basic & dilutive earnings per share from continuing operations - pounds £

(2.47)

(2.53)

 

There is no difference between the diluted loss per share and the basic loss per share presented as there are no dilutive instruments in issue during any of the periods.

7              Share Capital

 

Number of shares

Ordinary shares    

Total

 

 

£

£

On Incorporation

100

2,055

2,055

Balance at 31 December 2022

100

2,055

2,055

Balance at 30 June 2023

100

2,055

2,055

 

On incorporation FAMN issued 100 shares at 25 EUR per share.

Share capital is translated into £GBP as of the date of incorporation on 16 August 2010. The value has not been revalued to adjust for exchange rate fluctuations over the multiple periods.

8              Related party transactions

During the period there were no related party transactions.

9              Events subsequent to period end

On 31 July 2023 the Metals One PLC entered into the FMN SPA with the shareholders of the Company, to acquire the entire issued share capital of FMN.

 

Refer to Note 9 of the Metals One PLC Interim Financial statements for further information

 

There have been no events subsequent to period end requiring disclosure.

10           Capital Commitments

There were no capital commitments as at 30 June 2023.

11           Contingent Liabilities

There were no contingent liabilities as at 30 June 2023.

 


APPENDIX 2

SCANDINAVIAN RESOURCES HOLDINGS

STATEMENT OF PROFIT AND LOSS


 

Unaudited 6 months

ending 30 June 2023

Unaudited 6 months

ending 30 June 2022


 

 

Note

£

£

Continuing operations


 


  Other income

6

10,761

97,782

  Administrative expenses

 

(11,805)

(133,363)

Operating (loss)/ profit

 

(1,044)

(35,581)

(Loss) / Profit before taxation

 

 

 

  Income tax expense

 

-

-

(Loss)/ profit for the period from continuing operations

 

(1,044)

(35,581)

Other comprehensive income

 

(4,803)

(43,111)

Total comprehensive profit for the year attributable to shareholders from continuing operations

 

(5,847)

78,692


 

 


Basic and dilutive earnings per share - pounds

7

(5.02)

(177.90)

 

 

 

 

The accompanying notes form an integral part of the Interim Financial Information.




 

SCANDINAVIAN RESOURCES HOLDINGS

STATEMENT OF FINANCIAL POSITION

 

 


Unaudited

As at

30 June 2023
£

Unaudited

As at

30 June 2022
£


 

Note

 

NON-CURRENT ASSETS

 



Intangible Assets

 

12,832

Investments

 

-

TOTAL NON-CURRENT ASSETS

 

11,992

12,832

CURRENT ASSETS

 



Cash and cash equivalents

 

57

Trade and other receivables

 

67,304

TOTAL CURRENT ASSETS

 

61,475

67,361

TOTAL ASSETS

 

73,467

80,193

 

 



EQUITY

 



Share capital

8

57

Foreign exchange reserve

 

1,836

Retained earnings

 

63,436

46,536

TOTAL EQUITY

 

65,033

48,429

 

 

 

 

CURRENT LIABILITIES

 

 

 

   Trade and other payables

 

31,764

TOTAL CURRENT LIABILITIES


8,434

31,764

TOTAL LIABILITIES

 

8,434

31,764

TOTAL EQUITY AND LIABILITIES


73,467

80,193

 

 

 

The accompanying notes form an integral part of the Interim Financial Information.

 

 

 


 

 

 

 

 

 

 

 

 

SCANDINAVIAN RESOURCES HOLDINGS

STATEMENT OF CASH FLOWS

 


 

 

Unaudited

6 months ending 30 June 2023
£

 

Unaudited

6 months ending 30 June 2022
£


 

Note

 

 

Cash flow from Operating Activities




 

  (Loss)/Profit for the financial year


(1,044)

(35,581)

 

Adjustments for:




 

Gain on disposal of exploration interests


-

(63,467)

 

Fees settled through issue of financial instruments


-


 

Foreign exchange movements


7,782

(667)

 

Changes in working capital:




 

Increase in trade and other receivables


(8,061)

(66,442)

 

Increase in trade and other payables


1,323

21,356

 

Net cash used in operating activities

 

-

(144,801)

 

 

 

 

 

 

Cash flow from Investing Activities




 

Disposal of listed equities


-

144,801

 

Purchases of intangible assets


-

-

 

Net cash used in investing activities

 

-

144,801

 

 

 

 

 

 

Net increase in cash and cash equivalents


-

-

 

Cash and cash equivalents at beginning of period


54

57

 

Foreign exchange impact on cash


(3)

-

 

Cash and cash equivalents at the end of the period


53

57

 









 

 

 

 


SCANDINAVIAN RESOURCES HOLDINGS

NOTES TO THE INTERIM FINANCIAL STATEMENTS

 

1              General information

Scandinavian Resource Holdings Pty Ltd ("SRH") is an Australian proprietary limited company (can 630 971 112) incorporated under the Australian Corporations Act 2001. SRH was incorporated on 13 January 2019 with its registered office being at Suite 5 CPC, 145 Stirling Highway, Nedlands, Western Australia 6009.

The principal activity of SRH is to seek suitable investment opportunities to explore & develop assets in the natural resources sector.

2              Basis of preparation and accounting policies

IAS 8 requires that management shall use its judgement in developing and applying accounting policies that result in information which is relevant to the economic decision-making needs of users, that are reliable, free from bias, prudent, complete and represent faithfully the financial position, financial performance and cash flows of the entity.

 

The same accounting policies, presentation and methods of computation have been followed in these Condensed Interim Financial Information as were applied in the Historical Financial Information including in the Metals One PLC admission document except for the impact of the adoption of the Standards and interpretations described below and new accounting policies adopted as a result of changes in the Company.

 

 The Condensed Interim Financial Information is presented in £ unless otherwise stated, which is SRH's presentational currency. SRH's functional currency is the Australian dollar.

 

3              Going concern

The Condensed Interim Financial Information has been prepared on a going concern basis, which assumes that SRH will have access to sufficient liquid resources to enable them to continue in operational existence for the foreseeable future and not less than twelve months from the date of signing this report.

 

Taking these matters into consideration, the Directors consider that the continued adoption of the going concern basis is appropriate having reviewed the forecasts for the coming 18 months and the Condensed Interim Financial Information does not reflect any adjustments that would be required if they were to be prepared other than on a going concern basis.

4              New standards , amendments and interpretations

Standards and interpretations adopted in the period

There were no new standards or interpretations adopted by the Company in the period.

Standards and interpretations issued and not yet effective:

Standards, amendments and interpretations that are not yet effective and have not been early adopted are as follows:

 

Standard  

Impact on initial application

Effective date

IFRS 16

Lease Liability in a Sale and Leaseback

(Amendment to IFRS 16)

1 January 2024

IAS 7

Financial instruments : Disclosures

1 January 2024

IAS 1

Classification of Liabilities as Current or Non-Current.

1 January 2024

 

 

 

 

5              Critical accounting estimates and judgments

In preparing the Condensed Interim Financial Information, the directors have to make judgments on how to apply the Company's accounting policies and make estimates about the future. Estimates and judgements are continuously evaluated based on historical experiences and other factors, including expectations of future events that are believed to be reasonable under the circumstances. In the future, actual experience may deviate from these estimates and assumptions.

 

The directors have concluded that there are no key assumptions concerning sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

 

6              Other income


 

 

30 June 2023
£

30 June 2022
£

Sale of royalty


10,761

54,671

Proceeds from sale of interest in Rana Project


-

43,111

 

 

10,761

97,782

 

7              Earnings per share

The calculation of the basic and diluted earnings per share is calculated by dividing the loss attributable to equity holdings of SRH by the weighted average number of ordinary shares in issue during the period.


30 June 2023

30 June 2022

 

£

£

Loss attributable to shareholders of SRH

(1,044)

(35,581)

Weighted number of ordinary shares in issue

200

200

Basic & dilutive earnings per share from continuing operations - pounds £

(5.02)

(177.90)

 

 

8              Share capital

 

 

Number of shares

Ordinary shares

Total

 

 

£

£

On incorporation1

100

57

57

Balance at 31 December 2020

100

57

57





Share split2

100

-

-

Balance at 31 December 2021

200

57

57

 

 

 

 

Balance at 30 June 2022

200

57

57

 

 

 

 

Balance at 30 June 2023

200

57

57

 

 

 

 

 

1 On 13 January 2019 the Company issued 100 Ordinary Shares of $1 AUD per Ordinary Share.

2 On 5 October 2021 there was a 2:1 share split, resulting in 200 Ordinary Shares of $0.5 AUD per Ordinary Share

 

 

9              Related party transactions

Ofoten Minerals Pty Ltd ("OM")

As SRH does not possess an operational bank account, OM has paid for expenses on behalf of SRH and has also received funds on behalf of SRH. In the  6 month period ended 30 June 2023 £12,906 of expenses were paid by OM and £11,026 of monies owed to SRH was received.  The total outstanding amount owed from SRH at 30 June 2023 was £8,443 and the amount owed to SRH at 30 June 2023 was £60,713.

10           Capital Commitments

There are no capital commitments for the period.

11           Contingent Liabilities

There are no contingent liabilities for the period.

12           Events subsequent to period end

On 31 July 2023 the Metals One PLC entered into the SRH SPA with the shareholders of the Company to acquire the entire issued share capital of SRH.

 

Refer to Note 9 of the Metals One PLC Interim Financial statements for further information

 

There have been no events subsequent to period end requiring disclosure.

 

 

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