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Kazera Global PLC (KZG)

  Print          Annual reports

Thursday 31 March, 2022

Kazera Global PLC

Interim Results for the 6 months ended 31/12/2021

RNS Number : 7471G
Kazera Global PLC
31 March 2022
 

31 March 2022

Kazera Global plc

Interim Results for the six months ended 31 December 2021

 

Kazera Global plc ("Kazera Global", "Kazera" or "the Company"), the AIM quoted investment company, is pleased to announce its unaudited interim results for the six months ended 31 December 2021 ("the Period").

 

Highlights:

 

Management

· Dennis Edmonds was appointed sole CEO in October 2021

 

Operational

· 3-year tantalum contract secured, through to 31 December 2024 with Jiujiang Jinxin Nonferrous Metals Co Ltd at Tantalite Valley, Namibia

· High quality "chemical grade" Lithium and Feldspar samples were taken from the Tantalite Valley Mine

· Extensive work was undertaken on the processing plant at Tantalite Valley progressing towards production capability

· Acquired 60% of Whale Head Minerals which is applying for a Mining Permit over Heavy Mineral Sands with an NPV of £150 million

· Established a new loan facility to facilitate the Company to draw down up to £250,000 over the 6 months

· Diamond production exceeded 1,000 carats during the December/January production cycle

 

Post Period

· Diamond production has continued to be consistently maintained

· Plan to be significantly cash flow positive during 2022 with the intention to reinvest the proceeds into resource definition and mining, particularly at Tantalite Valley

· The processing plant at Tantalite Valley in Namibia is now nearing completion offering a substantial contribution to cash flow.

 

Outlook

· The granting of the Heavy Mineral Sands Permit will substantially increase the Company's asset base as well as cashflow.

· The Company is looking to continue to maximise production from its current assets as well as evaluating potential M&A opportunities.

· Kazera will also continue to invest in the business where needed and focus on maximising growth for shareholders

 

Dennis Edmonds, CEO of Kazera Global, said:

 

"Kazera continues to make positive progress across its operations and has weathered the effects of Covid on the industry well. As soon as cash is being generated by both diamonds and Tantalum the Company will be self-sustaining and any future cash will only be required if it is decided to accelerate growth or to fund an acquisition.

 

The Board remain focused on increasing shareholder value and delivering strong growth from both organic and inorganic opportunities that arise."

For further information on the Company, visit:  www. kazeraglobal .com

 

 

Kazera Global plc (c/o Camarco)

Dennis Edmonds (CEO)

Tel: +44 (0)203 757 4980

 

finnCap (Nominated Adviser and Joint Broker)

Christopher Raggett / Tim Harper (Corporate Finance)

 

Tel: +44 (0)207 220 0500

 

Camarco (PR)

James Crothers / Hugo Liddy / Gordon Poole

 

 

    Tel: +44 (0)20 3781 8331

 

UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE SIX MONTHS ENDED 31 DECEMBER 2021

   

Unaudited

six months

Unaudited

six months

Audited

year

 

ended

ended

ended

 

31 December

31 December

30

June

 

2021

2020

2021

 

Notes

£'000

£'000

£'000

 

 

 

 

Revenue

100

-

55

Cost of Sales

 

(100)

-

(55)

Gross Profit

 

-

-

-

 

 

 

 

Pre-production expenses

(72)

(72)

(111)

Administrative expenses

(474)

(381)

(881)

Share based payment expense

 

(55)

(87)

(172)

Operating loss and loss before tax

 

(601)

(540)

(1,164)

 

 

 

 

Tax on profit on ordinary activities

-

-

-

 

 

 

 

 

Loss for the period

 

(601)

(540)

(1,164)

 

 

 

 

Loss attributable to owners of the Company

(589)

(530)

(1,146)

(Loss)/profit attributable to non-controlling interests

(12)

(10)

(18)

 

 

(601)

(540)

(1,164)

 

 

 

 

Loss per share

 

 

 

Basic and diluted (loss) per share (pence)

(0.08) p

(0.08) p

(0.17) p

 

 

 

 

 

 

 

 

 

Loss for the period

(589)

(530)

(1,146)

Exchange differences on translation of foreign operations

(210)

(10)

107

Total comprehensive loss for the year attributable to equity holders of the parent

(379)

(540)

(1,039)

 

 

 

 

 

UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2021

   

Unaudited

Unaudited

Audited

 

As at

As at

As at

 

31 December

31 December

30

 June

 

2021

2020

2021

 

£'000

£'000

£'000

 

 

 

 

Non-current assets

 

 

 

Mines under construction

3,056

2,904

2,897

Property, plant & equipment

650

881

716

 

 

 

 

Total non-current assets

3,706

3,785

3,613

 

 

 

 

Current assets

 

 

 

Trade and other receivables

192

103

168

Cash and cash equivalents

83

22

47

 

 

 

 

Total current assets

275

125

215

 

 

 

 

Current liabilities

 

 

 

Trade and other payables

561

235

209

 

 

 

 

Total current liabilities

561

235

209

 

 

 

 

Non-current liabilities

 

 

 

Other payables

473

-

431

 Provisions

55

-

55

 

 

 

 

Total non-current liabilities

528

-

486

 

 

 

 

Net assets

2,892

3,675

3,133

 

 

 

 

 

 

 

 

Capital and reserves

 

 

 

Called up share capital

3,340

3,261

3,279

Share premium account

16,317

15,738

15,863

Capital redemption reserve

2,077

2,077

2,077

Share option reserve

392

252

337

Currency translation reserve

(687)

(331)

(477)

Retained earnings

(18,506)

(17,301)

(17,917)

Equity attributable to owners of the Company

2,933

3,696

3,162

Non-controlling interests

(41)

(21)

(29)

 

 

 

 

Shareholder funds

2,892

3,675

3,133

 

 

 

 

 

UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE SIX MONTHS ENDED 31 DECEMBER 2021

   

Share

capital

£'000

 

Share

premium account

£'000

Capital

redemption

 reserve

£'000

Share

option

reserve

£'000

Currency translation reserve

£'000

Retained earnings

£'000

Equity

 shareholders'

funds

£'000

Non-controlling interests

£'000

T otal

£'000

Balance at 1 July 2019

2,866

14,307

2,077

51

(34)

(14,552)

4,715

(1,174)

3,541

Comprehensive loss for the period

-

-

-

-

-

(769)

(769)

(251)

(1,020)

Other comprehensive income

-

-

-

-

(550)

-

(550)

-

(550)

Total comprehensive expense

-

-

-

-

(550)

(769)

(1,319)

(251)

(1,570)

Non-controlling interest on acquisition of a subsidiary

-

-

-

-

-

-

-

(10)

(10)

Transactions with Non-controlling interest

-

-

-

-

-

(1,450)

(1,450)

1,424

(26)

Issue of share capital, net of share issue costs

389

1,404

-

-

-

-

1,793

-

1,793

Share based payment expense

-

-

-

114

-

-

114

-

114

Balance at 30 June 2020

3,255

15,711

2,077

165

(584)

(16,771)

3,853

(11)

3,842

Comprehensive loss for the period

-

-

-

-

-

(1,146)

(1,146)

(18)

(1,164)

Other comprehensive income

-

-

-

-

107

-

107

-

107

Total comprehensive expense

-

-

-

-

107

(1,146)

(1,039)

(18)

(1,057)

Issue of share capital, net of share issue costs

24

152

-

-

-

-

176

-

176

Share based payment expense

-

-

-

172

-

-

172

-

172

Balance at 30 June 2021

3,279

15,863

2,077

337

(477)

(17,917)

3,162

(29)

3,133

Comprehensive loss for the period

-

-

-

-

-

(589)

(589)

(12)

(601)

Other comprehensive income

-

-

-

-

(210)

-

(210)

-

(210)

Total comprehensive expense

-

-

-

-

(210)

(589)

(799)

(12)

(811)

Issue of share capital, net of share issue costs

61

454

-

-

-

-

515

-

515

Share based payment expense

-

-

-

55

-

-

55

-

55

Balance at 31 December 2021

3,340

16,317

2,077

392

(687)

(18,506)

2,933

(41)

2,892

UNAUDITED CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE SIX MONTHS ENDED 31 DECEMBER 2021

 

 

Unaudited

Six months

Unaudited

Six months

Audited

year

 

 

ended

ended

ended

 

 

31 December

31

December

30

June

 

 

2021

2020

2021

 

 

£'000

£'000

£'000

Cash flows from operating activities

 

 

 

 

Operating loss

 

(601)

(540)

(1,164)

Adjustments for:

 

 

 

 

Depreciation and amortisation

 

65

3

126

Share based payment charge for year

 

55

87

172

Foreign exchange

 

(143)

250

(39)

Provisions for mine rehabilitation and decommissioning

 

 

 

55

Operating cashflow before working capital changes

 

(624)

(200)

(850)

Decrease/(increase) in receivables

 

(24)

86

21

Increase in payables

 

427

11

382

Net cash outflow from operating activities

 

(220)

(103)

(447)

 

 

 

 

 

Investing activities

 

 

 

 

Purchase of property, plant & equipment

 

-

(246)

(197)

Development costs

 

(259)

(87)

-

Net cash outflow from investing activities

 

(259)

(333)

(197)

 

 

 

 

 

Financing activities

Net proceeds from share issues

 

515

33

176

Loan received

 

-

-

90

Net cash inflow from financing activities

 

515

33

266

 

 

 

 

 

Net (decrease)/increase in cash in the period

 

36

(403)

(378)

Cash and cash equivalents at beginning of period

 

47

425

425

 

 

 

 

 

Cash and cash equivalents at end of period

 

83

22

47

 

 

 

 

 

 

 

 

 

 

 

NOTES TO THE UNAUDITED INTERIM ACCOUNTS

FOR THE SIX MONTHS ENDED 31 DECEMBER 2021

1.   Basis of preparation

The financial statements included in the interim accounts have been prepared under the historical cost convention and in accordance with International Financial Reporting Standards (IFRS). The comparative figures for the six months ended 31 December 2020 are also included in these interim accounts under the historical cost convention.

The principal accounting policies used in preparing these interim accounts are those expected to apply in the Company's Financial Statements for the year ending 30 June 2022 and are unchanged from those disclosed in the Company's Annual Report for the year ended 30 June 2021.

The interim accounts were approved by the Board of Kazera Global plc on 31 March 2022. The interim financial information for the six months ended 31 December 2021 does not constitute statutory accounts within the meaning of section 434 of the Companies Act 2006 and is unaudited. The comparatives for the year ended 30 June 2021 are not the Company's full statutory accounts for that period. A copy of the statutory accounts for that year has been delivered to the Registrar of Companies.  The auditors' report on those accounts was unqualified, and did not contain statements under sections 498(2) or (3) of the Companies Act 2006. Copies of the accounts for the year ended 30 June 2021 are available on the Company's website (https://kazeraglobal.com/).

 2.  Accounting policies

The principal accounting policies are:

Basis of preparation

The comparative figures for the six months ended 31 December 2021 have been presented on the same basis as the interim accounts for the six months ended 31 December 2020.

Going concern

The interim financial statements have been prepared on the going concern basis as, in the opinion of the Directors, at the time of approving the interim financial statements, there is a reasonable expectation that the Company will continue in operational existence for the foreseeable future.  The interim financial statements do not include any adjustments that would result from the going concern basis of preparation being inappropriate.

Sales of Tantalite

The interim accounts have been prepared on the basis that the Group is not deemed to be in commercial production; therefore, the proceeds of sales of Tantalite have been set off against the development costs associated with the Tantalite mine site.

3.  Share based payment expense

On 21 December 2018, 10,000,000 options were granted to L. Johnson, vesting on 21 December 2021 at an exercisable at 1.75p per share.

On 23 March 2020, a total of 66,666,667 share warrants were issued to G Clarke (50,000,000), N Harrison (8,333,333) and R Jennings (8,333,333) at an exercise price of 0.3p per share. On 13 October 2021, the Company issued 16,666,666 ordinary shares to satisfy the exercise of warrants at 0.3 pence per share.

On 4 June 2020, a total of 26,500,000 share options were issued to G Clarke (5,000,000), N Harrison (5,000,000), L Johnson (5,000,000), D Edmonds (10,000,000) and B James (1,500,000) at an exercise price of 1p per share.

 

4.  Loss per share

 

 

Unaudited

Unaudited

Audited

 

6 months ended

 6 months ended

Year ended

 

31 December 2021

31 December 2020

30 June 2021

 

£'000

£'000

£'000

 

 

 

 

Loss used for calculation of basic and diluted EPS

(589)

(530)

(1,164)

Loss for the year attributable to owners of the Company

(589)

(530)

(1,164)

Weighted average number of ordinary shares in issue used for calculation of basic and diluted EPS*

744,005,591

681,224,613

686,324,120

 

 

 

 

Loss per share (pence per share)

 

 

 

Basic and fully diluted*:

 

 

 

-from continuing and total operations

(0.08) p

(0.08) p

(0.17) p

*The Company has outstanding warrants and options which may be dilutive in future periods. The effect in respect of the current and comparative periods would have been anti-dilutive (i.e. reducing the loss per share) and accordingly is not presented.

5.  Distribution of Interim Report and Registered Office

A copy of the Interim Report will be available shortly on the Company's website, https://kazeraglobal.com/, in accordance with rule 26 of the AIM Rules for Companies; and copies will be available from the Company's registered office, Unit D, De Clare House Sir Alfred Owen Way, Pontygwindy Industrial Estate, Caerphilly, Wales, CF83 3HU.

 

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