REG - ATOME PLC - Unaudited Results for 6 Months Ended 30 June 2024
19/08/2024 07:00
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RNS Number : 8397A ATOME PLC 19 August 2024
19 August 2024
ATOME PLC
("ATOME", "the Company", or "the Group")
Unaudited Results for the Six Months Ended 30 June 2024
Current Trading Update with Positive Progress
ATOME (AIM: ATOM), a recognised world-leading green fertiliser platform, is
pleased to announce its unaudited results for the six-month period ended 30
June 2024 which are set out below together with a current trading update.
H1 2024 Operational Highlights:
- Successful completion of the Front-End Engineering and Design study
("FEED") for Villeta Project ("Villeta" or "the Project").
- Positive progress on the project financing for the Villeta project
with interest in debt financing suggesting some 3x oversubscription.
- Successful completion of pre Power Purchase Agreement ("PPA")
studies for the 300MW Yguazu project in Paraguay, twice the size of Villeta.
- Framework Collaboration Agreement with ICE, Costa Rica's state-owned
power company, for feasibility studies and a roadmap towards an industrial
scale green fertiliser facility in that country.
H1 2024 Financial Highlights:
- In February and March 2024, the Company completed successful
placings of shares to the Directors, related parties and institutional
shareholders totalling in aggregate US$2.9 million gross in value and for
which His Majesty's Revenue and Customs granted the Company EIS investment
status for certain qualifying investors.
- For the six months ended 30 June 2024, ATOME recorded a loss of
US$2.8 million (H1 2023: US$ 2.6 million), with US$6.2 million of costs
capitalised in relation to the 145MW Villeta Project (H1 2023: US$ 2.1
million).
- The Company's Chairman and leading shareholder granted a facility of
US$5 million starting from Q3 2024 to end Q3 2025 sufficient to support Group
working capital requirements.
Post H1 2024 Events:
- Heads of Terms signed with Yara International ASA ("Yara") for long
term offtake of Villeta's entire production. Yara, 43% owned by the Norwegian
Government, is the leading global crop nutrition company, reporting revenues
of over US$15 billion in 2023.
- Formal contract signed with the Paraguay government for a 30-year
Free Trade Zone at the ATOME's Villeta facility providing transparent legal
and fiscal certainty.
- Updated Investment Memorandum for Villeta project in Paraguay
including offtake details circulated to potential project-level equity and
debt investors.
- Discussions with leading international players ongoing and
significant investment interest shown in Villeta project financing as well as
in relation to ATOME's platform of projects extending to some 600MW.
Current Trading Update
ATOME continues to make expeditious progress on all of its projects.
The Company has developed into a recognised world leading green fertiliser
platform starting with its flagship Villeta project in Paraguay where Final
Investment Decision ("FID") and commencement of construction is targeted by
the end of the year, with detailed project finance discussions on both equity
and debt with leading international players now in advanced progress and
significant interest being shown.
Subsequent to the signing of the Yara Heads of Terms for offtake, ATOME is
pleased to announce the formal signing with the Paraguayan Government for
Villeta's Free Trade Zone Agreement.
ATOME's pipeline of projects now extends to 600MW and the Company views the
future with increasing confidence as it focuses on maintaining the momentum
with the support of the leading shareholder and continues to evaluate
opportunities to expand the current portfolio of interests.
The Company's latest Corporate Presentation can be found on the Company's
website at www.atomeplc.com (http://www.atomeplc.com)
Joint Statement by Peter Levine, Chairman and Olivier Mussat, CEO:
"ATOME has made considerable progress in this six month period which has
within a short period of time seen it develop into a world leader in green
fertiliser with the FEED study now completed for our flagship Villeta project.
This progress has continued at pace into the second half of the year with the
formal completion of the Free Trade Zone agreement and signing the Yara Heads
of Terms. Yara's stated mission to responsibly feed the world and protect the
planet is fully aligned with ATOME's strategy and their long term commitment
to offtake 100% of green fertiliser production from Villeta validates our
commercial proposition.
"The Villeta project is expected be the largest green fertiliser production
facility in the world when it comes on stream, which is currently projected
for late in 2027, and has the capability of serving and decarbonising food
value chains across South American, Europe and Asia. The 300MW Yguazu Project
in Paraguay, with power already reserved, is nearly triple the size and
capacity of Villeta and could come some 18 months later. The Costa Rica
project will be of a similar size to Villeta and ATOME is well placed to
capitalise on the country's strategic position and world-renowned premium food
industry.
"We have now a pipeline of projects of some 600MW and growing. ATOME is well
positioned to expand its platform exploiting the benefit of its position, know
how, developed engineering and design, management expertise and commercial
offtake experience by mobilising these attributes to take advantage of further
opportunities as they arise. With an exciting rest of the year in prospect we
accordingly view the outlook for ATOME with growing confidence.
"We wish to express our thanks and appreciation to the Paraguay government and
authorities for their continued support for our projects and congratulate the
Country on achieveing investment grade status from Moody's Ratings. We also
thank Yara for their trust and commitment as we look forward to a long and
mutually beneficial relationship, as well as our colleagues for their hard
work and loyalty in pursuit of the Company's objectives."
The 2024 Half Year Report and Financial Statements will be made available at
https://www.atomeplc.com/ (https://www.atomeplc.com/)
For more information, please visit https://www.atomeplc.com
(https://www.atomeplc.com) or contact:
ATOME PLC +44 (0) 113 337 2210 (tel:+441133372210)
Nikita Levine, Investor Relations info@atomeplc.com (mailto:info@atomeplc.com)
Beaumont Cornish (Nominated Adviser) +44 (0) 20 7628 3396
Roland Cornish, Michael Cornish
SP Angel (Broker) +44 (0) 20 3490 0470 (tel:+442034900470)
Richard Hail, Caroline Rowe
FTI Consulting (Strategic Communications) +44 (0) 20 3727 1000 (tel:+442037271000)
atome@fticonsulting.com (mailto:atome@fticonsulting.com)
Elizabeth Adams, Ben Brewerton
The information communicated within this announcement is deemed to constitute
inside information as stipulated under the Market Abuse Regulations (EU) No
596/2014 which is part of UK law by virtue of the European Union (Withdrawal)
Act 2018. Upon publication of this announcement, this inside information is
now considered to be in the public domain. The person who arranged for the
release of this announcement on behalf of the Company was Peter Levine,
Chairman.
Beaumont Cornish Limited ("Beaumont Cornish") is the Company's Nominated
Adviser and is authorised and regulated by the FCA. Beaumont Cornish's
responsibilities as the Company's Nominated Adviser, including a
responsibility to advise and guide the Company on its responsibilities under
the AIM Rules for Companies and AIM Rules for Nominated Advisers, are owed
solely to the London Stock Exchange. Beaumont Cornish is not acting for and
will not be responsible to any other persons for providing protections
afforded to customers of Beaumont Cornish nor for advising them in relation to
the proposed arrangements described in this announcement or any matter
referred to in it.
About ATOME
ATOME PLC is an AIM listed company targeting green fertiliser production with
445-megawatt of projects in Paraguay and a further pipeline of potential
projects in Central America.
The first project is at Villeta in Paraguay. Villeta benefits from a 145MW
renewable power purchase agreement and 30 hectares of land in a free trade
zone. Front End Engineering Design studies have been completed and Heads of
Terms signed with Yara, the leading international fertiliser company for
offtake of all of Villeta's production. The Company is now negotiating the
project finance with a view to closing that and declaring FID before end 2024.
There is a further 300MW of renewable power reserved for ATOME in Paraguay.
In Costa Rica, The National Ammonia Corporation S.A. was formed in 2022 with
local partner Cavendish S.A. based in Costa Rica to develop green fertiliser
projects for the region. As well as straddling the Pacific and Atlantic
Oceans, Costa Rica is a democratic Central American country. In agriculture,
Costa Rica is the second largest supplier of pineapples in the world and is in
the top ten banana growers.
All power for ATOME is from 100% renewable sources and all chosen sites are
located close to the power and water sources and export facilities to serve
significant domestic and then international demand.
The Company has a green-focused Board which is supported by major shareholders
including Peter Levine, Schroders, a leading fund manager, and Baker Hughes, a
global technology company operating in the energy and industry sectors
Financial Review to 30 June 2024
The condensed financial statements present the half-year results for the six
months ended 30 June 2024 for ATOME PLC, a green hydrogen, ammonia and
fertiliser project development company on the London Stock Exchange, with
large-scale projects of over 600MW in South America and Europe concentrating
on energy and food security, together with hydrogen mobility projects.
Operating loss attributable to the Group's equity holders was in line with
expectations and totalled US$ 2.7 million (US$2.8 million and US$6.8
million for the six months ended 30 June 2023 and for the year ended 31
December 2023, respectively). As the Villeta project has advanced with front
end engineering and design (FEED), costs incurred on the FEED contract and
other directly attributable costs totalling US$6.2 million were capitalised as
at 30 June 2024 (US$2.1 million for the six months ended 30 June 2023 and
US$4.5 million as at 31 December 2023).
Net cash used by operating activities totalled US$1.6 million
(US$3.3 million and US$3.8 million for the six months ended 30 June 2023 and
for the year ended 31 December 2023, respectively), with cash used by
investing activities totalling US$1.4 million (US$2.1 million and US$4.7
million for six months ended 30 June 2023 and year ended 31 December 2023,
respectively).
Operating deficit and cash outflows to investing activities were financed
primarily by net proceeds from the issue of shares in the placings in February
and March totalling US$2.4 million (US$4.6 million in six months ended
30 June 2022 and US$4.4 million in the year ended 31 December 2023).
Further funding will continue to be required from shareholders lenders or
otherwise for the Company to achieve success in project financing for the
Villeta Project with the desired outcome of cash generative production in 2027
and to continue its operations.
Additional funds may be made available to the Group in the form of the
commitment based on the support letter ("the Facility") provided by Peter
Levine through one of his entities, the terms of which were announced on 27
June 2024. The terms thereof provide inter alia for an unsecured facility of
up to £4 million (US$5 million) for a period up to 30 September 2025 to
support working capital needs.
The results of the Group are presented in US Dollars as all its budgeting,
cost management and future trading is or will be denominated in US Dollars.
The foreign exchange gains and losses arising from translation from the Group
entities functional currency to US Dollars are taken to the Translation
reserve on the statement of financial position.
6 months 6 months Year ended
to 30 June to 30 June 31 Dec
2024 2023 2023
(Unaudited) (Unaudited) (Audited)
US$000 US$000 US$000
Income from grants - 6 -
Other Income - - 312
Loss before tax (2,541) (2,856) (6,900)
Net cash used by operating activities (1,552) (3,257) (3,777)
Proceeds from issue of shares (net of expenses) 2,444 4,583 4,408
Net cash/(debt) (733) 2,838 (260)
Cash balance 77 3,634 550
Condensed Consolidated Statement of Comprehensive Income
6 months 6 months Year ended
to 30 June to 30 June 31-Dec
2024 2023 2023
(Unaudited) (Unaudited) (Audited)
Note US$000 US$000 US$000
Administrative expenses 3 (2,430) (2,870) (7,265)
Other income - - 312
Investment grant - 6 -
Operating loss (2,430) (2,864) (6,953)
Finance Income 16 22 54
Finance costs (129) (37) (1)
Foreign exchange gain 2 23 -
Loss before taxation (2,541) (2,856) (6,900)
Income tax (charge)/credit - - -
Loss for the period from continuing operations (2,541) (2,856) (6,900)
Non-controlling interest share of the comprehensive loss (197) 42 78
Loss attributable to the equity holders (2,738) (2,814) (6,822)
Other comprehensive income (loss)
Items that may be reclassified subsequently to profit or loss (74) 256 239
Total comprehensive loss for the period attributable to the equity holders of (2,812) (2,558) (6,583)
the Parent Company
Loss per share from continuing operations US cents US cents US cents
Basic loss per share 4 (6.30) (7.60) (17.63)
Diluted loss per share 4 (6.30) (7.60) (17.63)
Condensed Consolidated Statement of Financial Position
30-Jun 30-Jun 31-Dec
2024 2023 2023
(Unaudited) (Unaudited) (Audited)
US$000 US$000 US$000
Note
ASSETS
Non-current assets
Intangible assets 5 5,854 - 4,512
Goodwill 2 6 2
Property, plant and equipment 6 1,223 3,059 1,217
7,079 3,065 5,731
Current assets
Trade and other receivables 7 1,178 2,842 1,325
Cash and cash equivalents 77 3,634 550
1,255 6,476 1,875
TOTAL ASSETS 8,334 9,541 7,606
LIABILITIES
Current liabilities
Trade and other payables 8 3,249 1,197 2,852
3,249 1,197 2,852
Non-current liabilities
Non-current portion of leases 8 15 - 28
Long-term debt 810 796 810
825 796 838
TOTAL LIABILITIES 4,074 1,993 3,690
EQUITY
Share capital 121 106 109
Share premium 19,725 16,786 16,881
Retained earnings (17,282) (10,536) (14,544)
Translation reserve (166) (75) (92)
Share based payment reserve 1,862 1,428 1,759
Equity attributable to owners of the parent 4,260 7,709 4,113
Non-controlling interest - (161) (197)
TOTAL EQUITY 4,260 7,548 3,916
TOTAL EQUITY AND LIABILITIES 8,334 9,541 7,606
Condensed Consolidated Statement of Changes in Equity
Share capital and premium Retained earnings Other Reserves Total Non-controlling interest Total
US$000 US$000 US$000 US$000 US$000 US$000
Balance as at 1 January 2023 11,997 (7,722) 815 5,090 (119) 4,971
Share-based payments - - 282 282 - 282
Offer of shares to public 5,088 - - 5,088 - 5,088
Costs of issue of new shares (95) - - (95) - (95)
Transactions with owners 4,993 - 282 5,275 - 5,275
Loss for the period - (2,856) - (2,856) - (2,856)
Non-controlling interest share in comprehensive loss - - (42) -
Exchange differences on translation - 256 256 - 256
Total comprehensive loss - (2,856) 256 (2,600) (42) (2,642)
Balance as at 30 June 2023 16,990 (10,578) 1,353 7,765 (161) 7,604
Share-based payments - - 331 331 - 331
Offer of shares to public - - - - - -
Costs of issue new shares - - - - - -
Transactions with owners 16,990 (10,578) 1,684 8,096 (161) 7,935
Loss for the period - (3,966) - (3,966) - (3,966)
Non-controlling interest share in comprehensive loss - (36) (36)
Exchange differences on translation - (17) (17) (17)
Total comprehensive loss - (3,966) (17) (3,983) (36) (4,019)
Balance as at 1 January 2024 16,990 (14,544) 1,667 4,113 (197) 3,916
Share-based payments - - 103 103 - 103
Offer of shares to public 2,919 - - 2,919 - 2,919
Costs of issue of new shares (63) - - (63) - (63)
Transactions with owners 2,856 - 103 2,959 - 2,959
Loss for the period - (2,541) - (2,541) - (2,541)
Non-controlling interest share in comprehensive loss (197) - (197) 197 -
Exchange differences on translation - (74) (74) - (74)
Total comprehensive income/(loss) - (2,738) (74) (2,812) 197 (2,615)
Balance as at 30 June 2024 19,846 (17,282) 1,696 4,260 - 4,260
Condensed Consolidated Statement of Cash Flows
Six months ended 30 June 2024
6 months 6 months Year ended
to 30 June to 30 June 31-Dec
2024 2023 2023
(Unaudited) (Unaudited) (Audited)
US$000 US$000 US$000
Cash flows from operating activities
Cash used in operating activities - (note 9) (1,552) (3,257) (3,777)
(1,552) (3,257) (3,777)
Cash flows from investing activities
Expenditure on development and production assets (1,361) (2,070) (4,767)
Interest received 16 - 54
(1,345) (2,070) (4,713)
Cash flows from financing activities
Proceeds from issue of shares (net of expenses) 2,444 4,583 4,408
Long-term loan proceeds - 796 810
Finance costs (3) - -
Repayment of obligations under leases (12) (13) (22)
2,429 5,366 5,196
Net increase/(decrease) in cash and cash equivalents (468) 39 (3,294)
Opening cash and cash equivalents at beginning of year 550 3,452 3,452
Exchange (losses)/gains on cash and cash equivalents (5) 143 392
Closing cash and cash equivalents 77 3,634 550
Notes to the Financial Statements
Six months ended 30 June 2024
1. Nature of operations and general information
ATOME PLC (the Company) is a public company limited by shares and incorporated
in England in the United Kingdom under the Companies Act 2006. The address of
the Company's registered office is Carrwood Park, Selby Road, Leeds, LS15 4LG.
The Company's and its subsidiaries' (the Group) operations and principal
activities include planning, development and execution of the projects to
produce green hydrogen, ammonia and fertiliser using renewable energy. The
Company is quoted on the AIM market of the London Stock Exchange (ticker:
ATOM), and is headquartered in Leeds, UK, with offices in Asunción, Paraguay
and Costa Rica.
These condensed consolidated interim financial statements (the interim
financial statements) have been approved for issue by the Board of Directors
on 16 August 2024. The financial information for the six months ended 30 June
2024 and 30 June 2023 was neither audited nor reviewed by the auditor. The
Group's audited statutory financial statements for the year ended
31 December 2023 have been filed with the Registrar of Companies. The
auditor's report on those financial statements was unqualified, did not
include a reference to matters to which the auditors drew attention by way of
emphasis except for potential material uncertainty that may arise around the
Company's ability to continue as a going concern, and did not contain a
statement under section 498(2) or (3) of the Companies Act 2006.
2. Basis of preparation
The interim financial statements do not include all the information required
for full annual financial statements and should be read in conjunction with
the consolidated financial statements of the Group for the year ended 31
December 2023, which have been prepared in accordance with UK adopted
International Accounting Standards.
These financial statements have been prepared under the historical cost
convention, except for any derivative financial instruments which have been
measured at fair value. The accounting policies adopted in the 2024 interim
financial statements are the same as those adopted in the financial statements
for the year ended 31 December 2023, as included in the 2023 Annual report.
6 months 6 months Year ended
to 30 June to 30 June 31 Dec
2024 2023 2023
(Unaudited) (Unaudited) (Audited)
US$000 US$000 US$000
3 Administrative expenses
Directors' fees and staff costs (including non-executive Directors) 1,005 1,409 3,457
Cost of issue for existing shares 75 - 95
Share-based payments 103 - 613
Depreciation 13 - 31
Other 1,234 1,461 3,069
2,430 2,870 7,265
4 Loss per share
Net loss for the period attributable to the equity holders of the Parent (2,738) (2,814) (6,822)
Company
Number Number Number
'000 '000 '000
Weighted average number of shares in issue 43,462 37,019 38,685
Earnings /(loss) per share US cents US cents US cents
Basic (6.30) (7.60) (17.63)
Diluted (6.30) (7.60) (17.63)
5 Intangible Assets
Total
US$000
Cost
At 1 January 2023 -
Additions -
At 30 June 2023 -
Reclassification from property, plant and equipment 2,132
Additions 2,380
At 1 January 2024 4,512
Additions 1,342
At 30 June 2024 5,854
Net Book Value 30 June 2024 5,854
Net Book Value 30 June 2023 -
Net Book Value 31 December 2023 4,512
6 Property, plant and equipment
Land Leased
Assets Assets Other Assets Total
US$000 US$000 US$000 US$000
Cost
At 1 January 2023 918 47 - 965
Additions - - 2,132 2,132
At 30 June 2023 918 47 2,132 3,097
Additions 56 2,385 2,441
Reclassification to intangible assets - - (2,132) (2,132)
At 1 January 2024 918 103 253 1,274
Additions - - 19 19
At 30 June 2024 918 103 272 1,293
Depreciation/Impairment
At 1 January 2023 - 26 - 26
Charge for the period - 12 - 12
At 30 June 2023 - 38 - 38
Charge for the period 7 12 - 19
At 1 January 2024 7 50 - 57
Charge for the period - 13 - 13
At 30 June 2024 7 63 - 70
Net Book Value 30 June 2024 911 40 272 1,223
Net Book Value 30 June 2023 918 9 2,132 3,059
Net Book Value 31 December 2023 911 53 253 1,217
6 months 6 months Year ended
to 30 June to 30 June 31 Dec
2024 2023 2023
(Unaudited) (Unaudited) (Audited)
US$000 US$000 US$000
7 Trade and other receivables
Outstanding on share issue 791 2,037 906
Other receivables 285 384 338
Prepayments 102 421 81
1,178 2,842 1,325
8 Trade and other payables
Current
Other payables 3,222 1,187 2,826
Current portion of leases 27 10 26
3,249 1,197 2,852
Non-current
Non-current portion of leases 15 - 28
Long-term debt 810 796 810
825 796 838
Total carrying value 4,074 1,993 3,690
9. Reconciliation of operating profit to net cash outflow from operating
activities
6 months 6 months Year ended
to 30 June to 30 June 31 Dec
2023 2023 2023
(Unaudited) (Unaudited) (Audited)
US$000 US$000 US$000
Loss from operations before taxation (2,430) (2,857) (6,953)
Interest accretion on lease liability 1 1 1
Depreciation and impairment of property, plant
and equipment 13 12 31
Amortisation and impairment of goodwill - - 4
Foreign exchange loss/(gain) (67) - (155)
Placing costs expensed 75 191 -
Payments in kind for shares placed 337 - 1,197
Share-based payments 103 282 613
Operating cash flows before movements in
working capital (1,968) (2,371) (5,262)
Decrease/(increase) in receivables 32 (439) 202
/Increase/(decrease) in payables 384 (447) 1,283
Net cash used by operating activities (1,552) (3,257) (3,777)
10. Capital commitments
The Group's outstanding capital commitments in relation to its projects
totalled US$2.7 million as at 30 June 2024.
11. Share capital
In February and March 2024, the Company issued 4,600,000 new ordinary shares
("Subscription Shares") at a price of £0.50 per share, with gross proceeds
totalling US$2.9 million, of which $0.5 million was offset against amounts
payable to directors and employees, resulting in net proceeds of US$2.4
million
-ends-
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