Interim Results: 1 May 2021 - 31 October ...
Vast Resources plc / Ticker: VAST / Index: AIM / Sector: Mining
31 January 2022
Vast Resources plc
(‘Vast’ or the ‘Company’)
Interim Results: 1 May 2021 – 31 October 2021
Vast Resources plc, the AIM-listed mining company, is pleased to announce that it has released its unaudited interim report and financial results for period of 1 May 2021 to 31 October 2021.
The report can be found on the Company’s website at the following address:
https://www.vastplc.com/investor-information/document-downloads
Market Abuse Regulation (MAR) Disclosure:
Certain information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 as it forms part of UK Domestic Law by virtue of the European Union (Withdrawal) Act 2018 (“UK MAR”) until the release of this announcement.
**ENDS**
For further information, visit www.vastplc.com or please contact:
|
Vast Resources plc
Andrew Prelea (CEO) Andrew Hall (CCO) |
www.vastplc.com
+44 (0) 20 7846 0974 |
|
Beaumont Cornish – Financial & Nominated Advisor
Roland Cornish James Biddle |
www.beaumontcornish.com
+44 (0) 20 7628 3396 |
|
Shore Capital Stockbrokers
Limited
–
Joint Broker
Toby Gibbs / James Thomas (Corporate Advisory) |
www.shorecapmarkets.co.uk
+44 (0) 20 7408 4050 |
|
Axis Capital Markets Limited
–
Joint Broker
Kamran Hussain |
www.axcap247.com
+44 (0) 20 3206 0320 |
|
St Brides Partners Limited
Susie Geliher / Charlotte Page |
www.stbridespartners.co.uk
+44 (0) 20 7236 1177 |
ABOUT VAST RESOURCES PLC
Vast Resources plc is a United Kingdom AIM listed mining company with mines and projects in Romania and Zimbabwe.
In Romania, the Company is focused on the rapid advancement of high-quality projects by recommencing production at previously producing mines.
The Company's Romanian portfolio includes 100% interest in the producing Baita Plai Polymetallic Mine, located in the Apuseni Mountains, Transylvania, an area which hosts Romania's largest polymetallic mines. The mine has a JORC compliant Reserve & Resource Report which underpins the initial mine production life of approximately 3-4 years with an in-situ total mineral resource of 15,695 tonnes copper equivalent with a further 1.8M-3M tonnes exploration target. The Company is now working on confirming an enlarged exploration target of up to 5.8M tonnes.
The Company also owns the Manaila Polymetallic Mine in Romania, which was commissioned in 2015, currently on care and maintenance. The Company has been granted the Manaila Carlibaba Extended Exploitation Licence that will allow the Company to re-examine the exploitation of the mineral resources within the larger Manaila Carlibaba licence area.
In Zimbabwe, the Company is focused on the commencement of the joint venture mining agreement on the Community Diamond Concession, Chiadzwa, in the Marange Diamond Fields.
Overview of the Interim Results for the six months to 31 October 2021
Financial
- 39% increase in administrative and overhead expenses for the six month period ended 31 October 2021 ($2.318 million) compared to the six month period ended 31 October 2020 ($1.672 million). The increase reflects additional overhead at the Baita Plai Mine to support production and costs associated with Covid-19 health and safety protocols. Administrative and overhead expenses for the six month period ended 31 October 2021 ($2.318 million) are lower compared to the six month period ended 30 April 2021 ($2.567 million).
- Foreign exchange loss of $1.109 million for the period compared to a gain of $2.015 million for the six month period ended 31 October 2020. These losses are partially offset by exchange gains on translation of foreign operations ($0.542 million).
- $6.280 million increase in losses after taxation from continuing operations in the period ($7.320 million) compared to the six month period ended 31 October 2020 ($1.040 million). This increase is mainly driven by a swing in exchange gain / (loss) of $3.124 million and gross loss of $2.101 million.
- Cash balances at the end of the period $0.055 million compared to $0.239 million as at 31 October 2020.
Operational Development
- As announced on 1 October 2021, the Company confirmed the suitability of X-Ray Sorting Technology (‘XRT’) to optimise the Manaila Polymetallic Mine’s production profile, which is expected to result in a substantial improvement in the economics of the mine. The test results conducted by TOMRA indicate that an XRT machine can substantially reduce transportation and production costs. It is for these reasons that the Company is planning to recommence production which will be dependent upon obtaining financing.
Funding
Share issues during the period: gross proceeds / consideration before cost of issue
| £ | $ | Shares Issued | Issued to |
| 1,536,940 | 2,114,972 | 24,395,870 | Placing with investors |
| 225,600 | 311,588 | 3,580,952 | Subscription by investors |
| 1,762,540 | 2,426,560 | 27,976,822 |
On 6 May 2021 the Company concluded a capital reorganisation which comprised two distinct parts, firstly a consolidation of the existing Ordinary Shares on a 1 for 100 basis, and then a subdivision of each resulting ordinary share of 10p into one new Ordinary Share and eleven new Deferred Shares. The effect of this reorganisation was to reduce the number of ordinary shares in issue by a factor of 100. The loss per share comparatives for the 12 months to 30 April 2021, and the 6 months to 31 October 2020 have been adjusted to reflect this reduction in shares.
Post period end:
| £ | $ | Shares Issued | Issued to |
| 1,350,000 | 1,812,595 | 54,000,000 | Placing with investors |
| 185,585 | 250,000 | 9,306,341 | Settle debt |
| 1,535,585 | 2,062,595 | 63,306,341 |
Debt Funding
Post period end:
- The Company repaid $250,000 of the principal of the first tranche of the Atlas facility through the issuance of shares.
- The Company has received a binding term sheet for the refinancing of the outstanding amount owed to Atlas . The term sheet is conditional on the transfer of client funds upon the execution of appropriate legal documentation including assignment of the relevant security assets. The Company and Atlas have executed legal documentation for a variation in the terms of the bond to extend the maturity 3 months to 30 April 2022 in order to close the refinancing transaction.
Board and Management
- Appointment of Nicolae Turdeau as Romanian Country Manager, reporting to Craig Harvey (COO).
- Appointment of Stancu Viorel as General Manager, reporting to Nicolae Turdeau (Country Manager), replacing Marcus Brewster who left the Company.
- Appointment of Nigel Wyatt as independent Non-Executive Director.
Post period end:
- Andrew Hall was formally appointed to the Board on 7 December 2021 as Commercial Director. Andrew’s responsibilities comprise the Company’s strategic business initiatives, capital raising, managing offtake relationships as well as leading the Company’s external and investor communications.
- On 7 December 2021 Roy Tucker relinquished his executive functions but remains a Non-Executive Director at the request of the Board to make available his in-depth knowledge and understanding of the Company.
CHAIRMAN’S STATEMENT
The period under review has been an extremely challenging one for the Company.
The Baita Plai Polymetallic Mine (‘BPPM’) experienced complications and production delays due to encountering friable ground at the faces that required extra tunnelling to safely re-enter the resource. The team successfully navigated these challenges, which should not be considered unusual for such a complex mining project, and I am pleased to report that production subsequent to the period end has steadily increased.
We have been actively engaging with investors with the objective of refinancing Atlas and Mercuria, supporting the restart of the Manaila Polymetallic Mine (‘MPM’) which is currently on care and maintenance, and to provide general working capital. I am pleased to report that we received a binding term sheet for the refinancing of the Atlas Tranche 1 bond. The term sheet is conditional on the transfer of client funds upon the execution of appropriate legal documentation including assignment of the relevant security assets. The Company and Atlas have concluded an agreement to allow for a 3 month extension to the maturity of the bond which now becomes due on 30 April 2022 in order to close the refinancing transaction.
The Company continues discussions to finalise the right to mine diamonds for the Company at the community diamond concession. Our discussions with the various Zimbabwe stakeholders remain in line with previous expectations, other than on timing, and we remain confident that we will be able to commence our mining operations in due course.
On 23 August 2021, Nigel Wyatt was appointed as an independent Non-Executive Director of the Company. Nigel has held senior positions in several mining and engineering companies primarily in Southern Africa. Andrew Hall was formally appointed to the Board on 7 December 2021 as Commercial Director. Andrew’s responsibilities comprise the Company’s strategic business initiatives, capital raising, managing offtake relationships as well as leading the Company’s external and investor communications. On 7 December 2021 Roy Tucker relinquished his executive functions but remains a Non-Executive Director. At the request of the Board, his in-depth knowledge and understanding of the Company remains available through a consultancy agreement.
In May 2021, the Company’s ordinary share capital was reorganised and consolidated so that the number of ordinary shares in issue was reduced by a factor of 100. The capital reorganisation comprised two distinct parts, firstly a consolidation of the existing ordinary shares on a 1 for 100 basis, and then a subdivision of each resulting ordinary share of 10p into one new ordinary share of 0.1p and eleven new deferred shares of 0.9p each.
I wish all our stakeholders well in these difficult times and, as always, remain committed to the safety of our employees and the communities in which we operate. With increasing production at BPPM and other projects in the pipeline, the Board remains optimistic for the future success of the Company.
Brian Moritz
Chairman
CHIEF EXECUTIVE OFFICER’S REPORT
The half year to 31 October 2021 has been another challenging period for the Company. The Company experienced complications and delays to production at the Baita Plai Polymetallic Mine (‘BPPM’) due to encountering friable ground at the faces that required extra tunnelling to come back into the resource. The Company successfully worked around this issue. This is testament to the establishment of a strong leadership team in Romania and the continued implementation of processes, procedures, and technical capabilities that provide the necessary platform to realise the value of BPPM. I am pleased to report that production has steadily increased since October 2021. In the quarter to 31 December, the mine steadily increased production numbers, with December contributing almost 50% of the total. We believe we have established the mining and production base on which to expand volumes and achieve profitability in the very near term.
Our Manaila Polymetallic Mine (‘MPM’) remained on care and maintenance during the period and we plan to restart production once we have successfully engaged new lenders for the project. The Company assessed the suitability of X-Ray Sorting Technology (XRT) to optimise the mine’s production profile. The assessment indicates that the implementation of XRT equipment would significantly improve the economics of MPM by reducing transportation and production expenses. The combination of MPM and BPPM production would also provide more favourable export logistics and the restart would represent an important part of the Company’s short-term strategy.
The Company has been actively engaged in acquiring new financing in order to refinance Tranche 1 of the Atlas bond facility and for financing for the Manaila restart and general working capital. We have received a binding term sheet with a new lender to repay the Atlas loan facility in full. The term sheet is conditional on the transfer of client funds upon the execution of appropriate legal documentation including assignment of the relevant security assets. The Company and Atlas have executed legal documentation for a variation in the terms of the bond to allow for a 3 month extension to 30 April 2022 in order to close the refinancing transaction.
The Company continues discussions with stakeholders regarding the right to mine diamonds for the Company at the community diamond concession. All stakeholders continue to express their support and the Company remains confident that an agreement will be finalised in due course.
On 4 May 2021 the Company appointed Nicolae Turdean as Romanian Country Manager. Nicolae has many years of experience in the mining industry, predominantly in Romania. Most recently, Nicolae held the position of President of the National Agency for Mineral Resources. Prior to this, Nicolae was the Chief Executive Officer of Cupra Min SA, the state-owned copper producer. Nicolae’s joining together with other key hires and appointments has strengthened the Company’s management and technical capabilities to successfully mine at BPPM.
Many thanks to fellow Board members and management for the commitment and hard work that has been put into the Group. I thank all our stakeholders for their support through these challenging times.
Andrew Prelea
Chief Executive Officer
Condensed consolidated statement of comprehensive income
for the six months ended 31 October 2021
| 31 Oct 2021 | 30 Apr 2021 | 31 Oct 2020 | ||
| 6 Months | 12 Months | 6 Months | ||
| Group | Group | Group | ||
| Unaudited | Audited | Unaudited | ||
| Note | $’000 | $’000 | $’000 | |
| Revenue | 1,143 | 896 | - | |
| Cost of sales | (3,244) | (2,642) | - | |
| Gross profit / (loss) | (2,101) | (1,746) | - | |
| Overhead expenses | (3,733) | (2,439) | 13 | |
| Depreciation of property, plant and equipment | (344) | (724) | (398) | |
| Profit / (loss) on sale of property, plant and equipment | - | 2 | - | |
| Share option and warrant expense | - | (178) | - | |
| Sundry income | 38 | 88 | 68 | |
| Exchange gain / (loss) | (1,109) | 2,612 | 2,015 | |
| Other administrative and overhead expenses | (2,318) | (4,239) | (1,672) | |
| Fair value movement in available for sale investments | - | (29) | - | |
| Profit / (loss) from operations | (5,834) | (4,214) | 13 | |
| Finance income | - | 4 | 59 | |
| Finance expense | (1,486) | (3,509) | (1,112) | |
| Loss before taxation from continuing operations | (7,320) | (7,719) | (1,040) | |
| Taxation charge | - | - | - | |
| Total (loss) after taxation for the period | (7,320) | (7,719) | (1,040) | |
| Other comprehensive income | ||||
| Items that may be subsequently reclassified to either profit or loss | ||||
| (Loss) / gain on available for sale financial assets | - | - | - | |
| Exchange gain /(loss) on translation of foreign operations | 542 | (1,740) | (1,412) | |
| Total comprehensive profit / (loss) for the period | (6,778) | (9,459) | (2,452) | |
| Total profit / (loss) attributable to: | ||||
| - the equity holders of the parent company | (7,320) | (7,755) | (1,076) | |
| - non-controlling interests | - | 36 | 36 | |
| (7,320) | (7,719) | (1,040) | ||
| Total comprehensive profit / (loss) attributable to: | ||||
| - the equity holders of the parent company | (6,778) | (9,495) | (2,488) | |
| - non-controlling interests | - | 36 | 36 | |
| (6,778) | (9,459) | (2,452) | ||
| Loss per share – basic and diluted | 4 | (3.27) | (4.90) | (0.89) |
Condensed consolidated statement of changes in equity
for the six months ended 31 October 2021
| Share capital | Share premium | Share option reserve | Foreign currency translation reserve | Retained deficit | Total | Non-controlling interests | Total | |
| $’000 | $’000 | $’000 | $’000 | $’000 | $’000 | $’000 | $’000 | |
| At 30 April 2020 | 27,096 | 82,997 | 2,983 | (855) | (107,377) | 4,844 | (349) | 4,495 |
| Total comprehensive loss for the period | - | - | - | (1,412) | (1,076) | (2,488) | 36 | (2,452) |
| Share option and warrant charges | - | - | - | - | - | - | - | - |
| Share options and warrants lapsed | - | - | - | - | - | - | - | - |
| Shares issued: | ||||||||
| - for cash consideration | 3,503 | 1,799 | - | - | - | 5,302 | - | 5,302 |
| - to settle liabilities | 117 | 72 | - | - | - | 189 | - | 189 |
| At 31 October 2020 | 30,716 | 84,868 | 2,983 | (2,267) | (108,453) | 7,847 | (313) | 7,534 |
| Total comprehensive loss for the period | - | - | - | (328) | (6,679) | (7,007) | - | (7,007) |
| Share option and warrant charges | - | - | 178 | - | - | 178 | - | 178 |
| Share options and warrants lapsed | - | - | (179) | - | 179 | - | - | - |
| VBP NCI acquisition | (6,756) | (6,756) | 313 | (6,443) | ||||
| Shares issued: | ||||||||
| - for cash consideration | 6,171 | 1,783 | - | - | - | 7,954 | - | 7,954 |
| - for NCI acquisition | 3,790 | 2,653 | 6,443 | 6,443 | ||||
| - to settle liabilities | 415 | 44 | - | - | - | 459 | - | 459 |
| At 30 April 2021 | 41,092 | 89,348 | 2,982 | (2,595) | (121,709) | 9,118 | - | 9,118 |
| Total comprehensive loss for the period | - | - | - | 542 | (7,320) | (6,778) | - | (6,778) |
| Share option and warrant charges | - | - | - | - | - | - | - | - |
| Share options and warrants lapsed | - | - | - | - | - | - | - | - |
| Shares issued for cash | ||||||||
| - for cash consideration | 39 | 2,261 | - | - | - | 2,300 | - | 2,300 |
| - to settle liabilities | - | - | - | - | - | - | - | - |
| At 31 October 2021 | 41,131 | 91,609 | 2,982 | (2,053) | (129,029) | 4,640 | - | 4,640 |
Condensed consolidated statement of financial position
As at 31 October 2021
| 31 Oct 2021 | 30 Apr 2021 | 31 Oct 2020 | ||
| Unaudited | Audited | Unaudited | ||
| Group | Group | Group | ||
| $’000 | $’000 | $’000 | ||
| Assets | Note | |||
| Non-current assets | ||||
| Property, plant and equipment | 3 | 17,100 | 17,284 | 15,751 |
| Available for sale investments | 895 | 891 | - | |
| Investment in subsidiaries | - | - | - | |
| 17,995 | 18,175 | 15,751 | ||
| Current assets | ||||
| Inventory | 5 | 743 | 936 | 840 |
| Receivables | 6 | 3,246 | 3,207 | 2,747 |
| Available for sale investments | - | - | 977 | |
| Cash and cash equivalents | 55 | 1,385 | 239 | |
| Total current assets | 4,044 | 5,528 | 4,803 | |
| Total Assets | 22,039 | 23,703 | 20,554 | |
| Equity and Liabilities | ||||
| Capital and reserves attributable to equity holders of the Parent | ||||
| Share capital | 41,131 | 41,092 | 30,716 | |
| Share premium | 91,609 | 89,348 | 84,868 | |
| Share option reserve | 2,982 | 2,982 | 2,983 | |
| Foreign currency translation reserve | (2,053) | (2,595) | (2,267) | |
| Retained deficit | (129,029) | (121,709) | (108,453) | |
| 4,640 | 9,118 | 7,847 | ||
| Non-controlling interests | - | - | (313) | |
| Total equity | 4,640 | 9,118 | 7,534 | |
| Non-current liabilities | ||||
| Loans and borrowings | 7 | - | - | 8,605 |
| Provisions | 9 | 1,185 | 1,206 | 473 |
| Deferred tax liability | - | - | - | |
| 1,185 | 1,206 | 9,078 | ||
| Current liabilities | ||||
| Loans and borrowings | 7 | 10,903 | 9,593 | 249 |
| Trade and other payables | 8 | 5,311 | 3,786 | 3,693 |
| Total current liabilities | 16,214 | 13,379 | 3,942 | |
| Total liabilities | 17,399 | 14,585 | 13,020 | |
| Total Equity and Liabilities | 22,039 | 23,703 | 20,554 | |
Condensed consolidated statement of cash flow
for the six months ended 31 October 2021
| 31 Oct 2021 | 30 Apr 2021 | 31 Oct 2020 | |
| Unaudited | Audited | Unaudited | |
| Group | Group | Group | |
| $’000 | $’000 | $’000 | |
| CASH FLOW FROM OPERATING ACTIVITIES | |||
| Profit (loss) before taxation for the period | (7,320) | (7,719) | (1,040) |
| Adjustments for: | |||
| Depreciation and impairment charges | 344 | 724 | 398 |
| (Profit) loss on sale of property, plant and equipment | - | (2) | - |
| Share option expense | - | 178 | - |
| Finance expense | 1,486 | 3,509 | 1,112 |
| (5,490) | (3,310) | 470 | |
| Changes in working capital: | |||
| Decrease (increase) in receivables | (17) | (1,513) | (937) |
| Decrease (increase) in inventories | 320 | (981) | (1,122) |
| Increase (decrease) in payables | 2,488 | (153) | (351) |
| 2,791 | (2,647) | (2,410) | |
| Taxation paid | - | - | - |
| Cash generated by / (used in) operations | (2,699) | (5,957) | (1,940) |
| Investing activities: | |||
| Payments to acquire property, plant and equipment | (756) | (4,391) | (2,755) |
| Proceeds on disposal of property, plant and equipment | - | 2 | - |
| . | |||
| Total cash used in investing activities | (756) | (4,389) | (2,755) |
| Financing Activities: | |||
| Proceeds from the issue of ordinary shares | 2,300 | 13,256 | 5,302 |
| Proceeds from loans and borrowings granted | - | - | - |
| Repayment of loans and borrowings | (175) | (2,003) | (846) |
| Total proceeds from financing activities | 2,125 | 11,253 | 4,456 |
| Increase (decrease) in cash and cash equivalents | (1,330) | 907 | (239) |
| Cash and cash equivalents at beginning of period | 1,385 | 478 | 478 |
| Cash and cash equivalents at end of period | 55 | 1,385 | 239 |
Interim report notes
1 Interim Report
These condensed interim financial statements, which are unaudited, are for the six months ended 31 October 2021 and consolidate the financial statements of the Company and all its subsidiaries. The statements are presented in United States Dollars.
The financial information set out in these condensed interim financial statements does not constitute statutory accounts as defined in Section 434(3) of the Companies Act 2006. The condensed interim financial statements should be read in conjunction with the consolidated financial statements of the Group for the period ended 30 April 2021 which have been prepared in accordance with International Financial Reporting Standards (IFRSs and IFRIC interpretations). The Auditor's report on those financial statements was unqualified and did not contain a statement under s.498(2) or s.498(3) of the Companies Act 2006.
While the Auditors’ report for the period ended 30 April 2021 was unqualified, it did include a material uncertainty related to going concern, to which the Auditors drew attention by way of emphasis without qualifying their report. Full details of these comments are contained in the report of the Auditors on Pages 22-26 of the annual financial statements for the period ended 30 April 2021, released elsewhere on this website on 28 October 2021. The accounts for the period have been prepared in accordance with International Accounting Standard 34 “Interim Financial Reporting” (“IAS 34”) and the accounting policies are consistent with those of the annual financial statements for the period ended 30 April 2021, unless otherwise stated, and those envisaged for the financial statements for the year ended 30 April 2022.
New IFRS accounting standards
At the date of authorisation of these financial statements, a number of Standards and Interpretations were in issue but were not yet effective. The Directors do not anticipate that the adoption of these standards and interpretations, or any of the amendments made to existing standards as a result of the annual improvements cycle, will have a material effect on the financial statements in the year of initial application.
Going concern
After review of the Group’s operations and ongoing refinancing discussions, the Directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. Accordingly, the Directors continue to adopt the going concern basis in preparing the unaudited condensed interim financial statements.
This interim report was approved by the Directors on 29 January 2022.
2 Segmental Analysis
| Mining, exploration and development | Admin and corporate | Total | ||
| Europe | Africa | |||
| $’000 | $’000 | $’000 | $’000 | |
| Six months to 31 October 2021 | ||||
| Revenue | 1,143 | - | - | 1,143 |
| Production costs | (3,244) | - | - | (3,244) |
| Gross profit (loss) | (2,101) | - | - | (2,101) |
| Impairment of intangible assets | - | - | - | |
| Depreciation | (342) | - | (2) | (344) |
| Profit (loss) on sale of property, plant and equipment | - | - | - | - |
| Share option and warrant expense | - | - | - | - |
| Sundry income | 38 | - | - | 38 |
| Exchange (loss) gain | (1,049) | - | (60) | (1,109) |
| Other administrative and overhead expenses | (1,622) | - | (696) | (2,318) |
| Finance income | - | - | - | - |
| Finance expense | (276) | - | (1,210) | (1,486) |
| Taxation (charge) | - | - | - | - |
| Profit (loss) for the period | (5,352) | - | (1,968) | (7,320) |
| 31 October 2021 | ||||
| Total assets | 20,515 | - | 1,524 | 22,039 |
| Total non-current assets | 17,025 | - | 970 | 17,995 |
| Additions to non-current assets | 756 | - | - | 756 |
| Total current assets | 3,490 | - | 554 | 4,044 |
| Total liabilities | 10,295 | - | 7,104 | 17,399 |
2 Segmental analysis (continued)
| Mining, exploration and development | Admin and corporate | Total | |||
| Europe | Africa | ||||
| $’000 | $’000 | $’000 | $’000 | ||
| Year to 30 April 2021 | |||||
| Revenue | 896 | - | - | 896 | |
| Production costs | (2,642) | - | - | (2,642) | |
| Gross profit (loss) | (1,746) | - | - | (1,746) | |
| Impairment of intangible assets | - | - | - | - | |
| Depreciation | (718) | - | (6) | (724) | |
| Profit (loss) on sale of property, plant and equipment | 2 | - | - | 2 | |
| Share option and warrant expense | - | - | (178) | (178) | |
| Sundry income | 88 | - | - | 88 | |
| Exchange (loss) gain | 1,939 | - | 673 | 2,612 | |
| Other administrative and overhead expenses | (2,036) | - | (2,203) | (4,239) | |
| Fair value movement in available for sale investments | - | - | (29) | (29) | |
| Finance income | - | - | 4 | 4 | |
| Finance expense | (545) | - | (2,964) | (3,509) | |
| Profit (loss) for the year | (3,016) | - | (4,703) | (7,719) | |
| 30 April 2021 | |||||
| Total assets | 20,913 | - | 2,790 | 23,703 | |
| Total non-current assets | 17,198 | - | 977 | 18,175 | |
| Additions to non-current assets | 4,390 | - | 1 | 4,391 | |
| Total current assets | 3,715 | - | 1,813 | 5,528 | |
| Total liabilities | 8,878 | - | 5,707 | 14,585 | |
2 Segmental analysis (continued)
| Mining, exploration and development | Admin and corporate | Total | |||
| Europe | Africa | ||||
| $’000 | $’000 | $’000 | $’000 | ||
| Six months to 31 October 2020 | |||||
| Revenue | - | - | - | - | |
| Production costs | - | - | - | - | |
| Gross profit (loss) | - | - | - | - | |
| Impairment of intangible assets | - | - | - | - | |
| Depreciation | (395) | - | (3) | (398) | |
| Profit (loss) on sale of property, plant and equipment | - | - | - | - | |
| Share option and warrant expense | - | - | - | - | |
| Sundry income | 68 | - | - | 68 | |
| Exchange (loss) gain | 1,630 | - | 385 | 2,015 | |
| Other administrative and overhead expenses | (744) | - | (928) | (1,672) | |
| Finance income | - | - | 59 | 59 | |
| Finance expense | (267) | - | (845) | (1,112) | |
| Taxation (charge) | - | - | - | - | |
| Profit (loss) for the year | 292 | - | (1,332) | (1,040) | |
| 31 October 2020 | |||||
| Total assets | 18,929 | - | 1,625 | 20,554 | |
| Total non-current assets | 15,648 | - | 103 | 15,751 | |
| Additions to non-current assets | 2,753 | - | 2 | 2,755 | |
| Total current assets | 3,281 | - | 1,522 | 4,803 | |
| Total liabilities | 7,719 | - | 5,301 | 13,020 | |
3 Property, Plant and equipment
| Group | Plant and machinery | Fixtures, fittings and equipment | Computer assets | Motor vehicles | Buildings and Improvements | Mining assets | Capital Work in progress | Total |
| $’000 | $’000 | $’000 | $’000 | $’000 | $’000 | $’000 | $’000 | |
| Cost at 1 May 2020 | 3,064 | 48 | 150 | 265 | 3,093 | 6,127 | 5,206 | 17,953 |
| Additions during the period | 27 | 6 | 3 | 6 | - | 2,158 | 555 | 2,755 |
| Reclassification | 363 | - | - | - | 414 | 1,963 | (2,740) | - |
| Foreign exchange movements | 195 | 3 | 8 | 27 | 160 | 255 | 308 | 956 |
| Cost at 31 October 2020 | 3,649 | 57 | 161 | 298 | 3,667 | 10,503 | 3,329 | 21,664 |
| Additions during the period | - | 11 | - | 1 | - | 201 | 1,423 | 1,636 |
| Reclassification | 825 | 6 | - | 425 | (414) | 1,308 | (2,150) | - |
| Foreign exchange movements | 80 | 1 | 4 | 14 | 73 | 116 | 141 | 429 |
| Cost at 30 April 2021 | 4,554 | 75 | 165 | 738 | 3,326 | 12,128 | 2,743 | 23,729 |
| Additions during the period | 32 | 1 | 6 | 13 | - | 197 | 507 | 756 |
| Reclassification | 8 | 2 | - | 118 | - | - | (128) | - |
| Foreign exchange movements | (189) | (5) | (6) | (51) | (115) | (399) | (99) | (864) |
| Cost at 31 October 2021 | 4,405 | 73 | 165 | 818 | 3,211 | 11,926 | 3,023 | 23,621 |
| Depreciation at 1 May 2020 | 2,397 | 47 | 78 | 151 | 875 | 1,066 | 604 | 5,218 |
| Charge for the period | 174 | 7 | 8 | 15 | 61 | 133 | - | 398 |
| Reclassification | - | - | - | - | - | (40) | - | (40) |
| Foreign exchange movements | 171 | 3 | 5 | 28 | 77 | 53 | - | 337 |
| Depreciation at 31 October 2020 | 2,742 | 57 | 91 | 194 | 1,013 | 1,212 | 604 | 5,913 |
| Charge for the period | 139 | 8 | 1 | 6 | 40 | 132 | - | 326 |
| Reclassification | - | (5) | 5 | - | - | 40 | - | 40 |
| Foreign exchange movements | 68 | 5 | 3 | 25 | 36 | 29 | - | 166 |
| Depreciation at 30 April 2021 | 2,949 | 65 | 100 | 225 | 1,089 | 1,413 | 604 | 6,445 |
| Charge for the period | 144 | 6 | 6 | 11 | 82 | 95 | - | 344 |
| Reclassification | - | - | - | - | - | - | - | - |
| Foreign exchange movements | (125) | (4) | (4) | (25) | (60) | (50) | - | (268) |
| Depreciation at 31 October 2021 | 2,968 | 67 | 102 | 211 | 1,111 | 1,458 | 604 | 6,521 |
| Net book value at 31 October 2020 | 907 | - | 70 | 104 | 2,654 | 9,291 | 2,725 | 15,751 |
| Net book value at 30 April 2021 | 1,605 | 10 | 65 | 513 | 2,237 | 10,715 | 2,139 | 17,284 |
| Net book value at 31 October 2021 | 1,437 | 6 | 63 | 607 | 2,100 | 10,468 | 2,419 | 17,100 |
4 Loss per share
| 31 Oct 2021 | 30 Apr 2021 | 31 Oct 2020 | |
| Unaudited | Audited | Unaudited | |
| Group | Group | Group | |
| Profit and loss per ordinary share has been calculated using the weighted average number of ordinary shares in issue during the relevant financial year. | |||
| The weighted average number of ordinary shares in issue for the period is: | 223,953,182 | 158,339,542 | 120,561,158 |
| Profit / (loss) for the period: ($’000) | (7,320) | (7,755) | (1,076) |
| Profit / (loss) per share for the period - basic and diluted | (3.27) | (4.90) | (0.89) |
| The effect of all potentially dilutive share options is anti-dilutive. |
|||
The loss per share comparatives for the 12 months to 30 April 2021, and the 6 months to 31 October 2021 have been adjusted to reflect the reduction in shares as a consequence of a capital reorganisation announced on 6 May 2021. The effect of this reorganisation was to reduce the number of ordinary shares in issue by a factor of 100.
5 Inventory
| Oct 2021 | Apr 2021 | Oct 2020 | |
| Unaudited | Audited | Unaudited | |
| Group | Group | Group | |
| $’000 | $’000 | $’000 | |
| Minerals held for sale | 52 | 266 | 104 |
| Production stockpiles | 6 | 6 | 49 |
| Consumable stores | 685 | 664 | 687 |
| 743 | 936 | 840 |
6 Receivables
| Oct 2021 | Apr 2021 | Oct 2020 | |
| Unaudited | Audited | Unaudited | |
| Group | Group | Group | |
| $’000 | $’000 | $’000 | |
| Trade receivables | 937 | 899 | 203 |
| Other receivables | 1,282 | 1,218 | 822 |
| Short term loans | 310 | 309 | 233 |
| Prepayments | 53 | 89 | 92 |
| VAT | 664 | 692 | 1,397 |
| 3,246 | 3,207 | 2,747 |
7 Loans and borrowings
| Oct 2021 | Apr 2021 | Oct 2020 | |
| Unaudited | Audited | Unaudited | |
| Group | Group | Group | |
| $’000 | $’000 | $’000 | |
| Non-current | |||
| Secured borrowings | 10,630 | 9,325 | 8,605 |
| Unsecured borrowings | - | ||
| less amounts payable in less than 12 months | (10,630) | (9,325) | |
| - | - | 8,605 | |
| Current | |||
| Secured borrowings | - | - | - |
| Unsecured borrowings | 272 | 266 | 249 |
| Bank overdrafts | 1 | 2 | - |
| Current portion of long term borrowings - secured | 10,630 | 9,325 | - |
| 10,903 | 9,593 | 249 | |
| Total loans and borrowings | 10,903 | 9,593 | 8,854 |
8 Payables
| Oct 2021 | Apr 2021 | Oct 2020 | |
| Unaudited | Audited | Unaudited | |
| Group | Group | Group | |
| $’000 | $’000 | $’000 | |
| Trade payables | 1,889 | 1,434 | 1,287 |
| Other payables | 1,003 | 789 | 883 |
| Other taxes and social security taxes | 2,379 | 1,528 | 1,460 |
| Accrued expenses | 40 | 35 | 63 |
| 5,311 | 3,786 | 3,693 |
9 Provisions
| Oct 2021 | Apr 2021 | Oct 2020 | |
| Unaudited | Audited | Unaudited | |
| Group | Group | Group | |
| $’000 | $’000 | $’000 | |
| Provision for rehabilitation of mining properties | |||
| - Provision brought forward from previous periods | 1,206 | 420 | 420 |
| - Liability recognised during period | - | - | - |
| - Derecognised on disposal of subsidiary | - | - | - |
| - Adjustments to provision during period | (21) | 786 | 53 |
| 1,185 | 1,206 | 473 |
10 Events after the reporting date
| Shares issued and gross proceeds / consideration | |||
| £ | $ | Shares Issued | Issued to |
| 1,350,000 | 1,812,595 | 54,000,000 | Placing with investors |
| 185,585 | 250,000 | 9,306,341 | Settle debt |
| 1,535,585 | 2,062,595 | 63,306,341 | |
- The Company repaid $250,000 of the principal of the first tranche of the Atlas facility through the issuance of shares.
- The Company has received a binding term sheet for the refinancing of the outstanding amount owed to Atlas. The term sheet is conditional on the transfer of client funds upon the execution of appropriate legal documentation including assignment of the relevant security assets. The Company and Atlas have executed legal documentation for a variation in the terms of the bond to allow for a 3 month extension to 30 April 2022 in order to close the refinancing transaction.
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