REG - Beowulf Mining PLC - Unaudited Results for Period Ended 30 June 2024
30/08/2024 07:00
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RNS Number : 2319C Beowulf Mining PLC 30 August 2024
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inside information as stipulated under the Market Abuse Regulation ("MAR")
(EU) No. 596/2014, as incorporated into UK law by the European Union
(Withdrawal) Act 2018. Upon the publication of this announcement, this inside
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30 August 2024
Beowulf Mining plc
("Beowulf" or the "Company")
Unaudited Financial Results for the Period Ended 30 June 2024
Beowulf Mining (AIM: BEM; Spotlight: BEO), the mineral exploration and
development company, announces its unaudited financial results for the six
months ended 30 June 2024 (the "Period").
The Company has made significant progress across its portfolio during the
Period, building out a skilled and dedicated team, ramping up activities at
the Gállok or Kallak Iron Ore Project ("Gállok") and the Graphite Anode
Materials Plant ("GAMP") in preparation for their respective Pre-Feasibility
Studies and permitting processes, and derisking the Company's projects to
ensure that their value can be fully demonstrated and optimised.
Activities in the Period
Corporate
· During the Period, the Company completed a capital raise, raising
a total of SEK 56.3 million (approximately £4.4 million) by way of a rights
issue of Swedish Depository Receipts in Sweden and a PrimaryBid retail offer
and a placing to certain UK investors including members of the Board and
executive management. Proceeds of the capital raise are being used to fund the
continued development of the Company's projects, in particular, the Gállok in
Sweden and the GAMP in Finland.
· In order to complete the capital raise, a General Meeting was
held to provide the Board of Directors with the requisite authorisation and
flexibility to increase the Company's share capital. In addition, given the
Company's share price was near the nominal value of the Ordinary Shares, the
existing Ordinary Shares of 1p each were subdivided into a new Ordinary Share
of 0.1p and a deferred A share of 0.9p.
· Following the capital raise, the Company, at its Annual General
Meeting ("AGM") on 14 June 2024, passed a resolution to complete a
consolidation of shares in the Company on the basis of 1 New Share of £0.05
(5 pence) for every 50 Existing Shares of £0.001 (0.1 of a penny) each. The
consolidation of the Existing Shares provides greater flexibility for the
Company when issuing new equity and should help to minimise dilution to
Shareholders.
· The completion of this financing has enabled the progression of
crucial workstreams, including advancing permit applications, environmental
impact assessments, and technical test-work at both sites, significantly
derisking the Company's projects.
Sweden
· During the Period, Dmytro Siergieiev joined Jokkmokk Iron Mines
AB ("Jokkmokk Iron") as Project Director with responsibility for leading the
further development of Gállok.
· Under Dmytro's leadership, Jokkmokk Iron initiated meetings with
local stakeholders including landowners and Sami villages focused on
developing a collaborative approach to future activity, with the view that
active transparent communication will aid Gállok through its developmental
phase.
· Work continued in preparation for both the Pre-Feasibility Study
("PFS") and Environmental Impact Assessment ("EIA") for Gállok. Critical
workstreams included metallurgical test-work, hydrogeological testing and the
initiation of trade-off studies on transport and logistics and the location of
the tailings management facility.
· During the Period, representatives of the Company met with a
delegation from UNESCO to discuss the development of Gállok in the context of
the Laponia World Heritage Site.
· On 25 June 2024, the Swedish Supreme Administrative Court
released its judgment upholding the Government's decision to award the
Exploitation Concession for Gállok in March 2022. The Exploitation Concession
and all attaching conditions therefore remain in full force.
Finland
· On 17 January 2024, Beowulf, through its wholly owned Finnish
subsidiary Grafintec Oy ("Grafintec"), announced an updated strategy to
fast-track the full GAMP process, consisting of Spheronisation, Purification
and Coating to produce Coated Spherical Graphite ("CSPG") for sale to anode
manufacturers. The updated strategy captures more of the anode material
production value-chain and provides greater supply-chain security following
the export controls imposed by China on graphite materials in December 2023,
further derisking the project.
· Test-work in preparation for an enhanced PFS on the full GAMP was
initiated during the Period with positive results demonstrating that the
proposed process flow-sheet produced battery grade graphite material.
Optimisation work is continuing with the conclusion of the PFS expected by the
end of 2024.
· The enhanced PFS will be followed by a Definitive Feasibility
Study ("DFS") during 2025 with first production still planned from 2027.
Kosovo
· The Company announced the consolidation of 100 per cent ownership
of Vardar Minerals Limited ("Vardar") during the Period, through the issue of
1,046,535 Beowulf shares (which remain subject to a 12-month lock-in
agreement), providing Beowulf with full ownership and optionality and, through
bringing management and administrative functions in-house, reduces the overall
running cost to Beowulf. The transaction completed on 8 April 2024.
· In connection with the consolidation, Ismet Krasniqi was
appointed to the Board of Vardar on the 8 April 2024.
· Vardar submitted applications, and received confirmation of
receipt on 22 February 2024, for new licences covering the original Mitrovica,
Viti East and Viti North licence areas, all of which expired on 27 January
2024 in accordance with their terms. Exploration licence applications are
reviewed by the Independent Commission for Mines and Minerals ("ICMM") in
Kosovo and ultimately granted by the Board of ICMM. The Government disbanded
the Board of ICMM in October 2023 and, although it is being reinstated, the
licence applications currently remain pending while the new ICMM Board works
through the backlog. With the licence applications formally lodged with ICMM,
no other party may apply for licences over the same area. The Company is
confident that the licences will be granted in the coming months and will
update the market accordingly. As these applications are for new licences,
they will be valid for an initial three-year period from the date of granting
after which they may be extended twice, for two-year periods with a reduction
in the land holding of 50 per cent on each occasion.
· Vardar received encouraging preliminary assay results from
sampling programmes on the Shala East licence with rock chip samples assaying
up to 3.84 grammes per tonne ("g/t") gold ("Au"), 117 g/t silver ("Ag"), 5.5%
zinc ("Zn") and 5.4% lead ("Pb"). Infill soil and rock chip sampling is
ongoing.
· Furthermore, sampling of water springs on the Viti North licences
has returned highly anomalous lithium and boron results of 1,260 and 10,500
microgrammes per litre respectively from a single sample. Further sampling and
exploration are planned.
Post Period
· The Company confirmed that the formal consultation process for the
Gállok EIA will be initiated following the summer. Feedback from this
consultation process will be taken into consideration and inform the
completion of the Gállok EIA and subsequent Environmental Permit application.
The submission for the Environment Permit application is targeted for Spring
2025.
· As part of the process, Reindeer Herding analysis, World Heritage
Assessments, and local stakeholder engagement continues.
· Indications from metallurgical test-work confirm that Gállok can
produce very high grade, low impurity iron concentrate.
· The infill drilling programme focussed on upgrading Inferred resource
to Measured and Indicated category is now expected to commence in Autumn 2024.
Following this drilling, the Mineral Resource Estimate ("MRE") will be updated
and form the basis of mine planning and reserve estimation.
· Other workstreams at Gállok, including metallurgy, mineral
processing, waste management, site infrastructure and transportation and
logistics, are being advanced or nearing completion.
· This ramp up in activity has advanced Gállok towards the completion
of the PFS, anticipated in Q2 2025, which will support the EIA and
Environmental Permit submission process.
· Optimisation work as part of the GAMP PFS continued with the
development of the water treatment flow-sheet to recycle sodium hydroxide
("NaOH"). Bench-scale test-work demonstrated the ability to recover more than
90 per cent of the NaOH, the primary reagent in the purification process, and
that this recycled material is high quality and can be reused in the process
to produce battery-grade graphite (>99.95 per cent graphite purity). In
addition, high-quality calcium carbonate ("Lime") produced as by-product from
the process can be used for neutralisation of the acidic wastewater and
potentially sold to other industries. The ability to recycle and reuse
reagents, decreases their overall consumption thereby reducing both the
operating cost and environmental impact.
Financial
· The underlying administration expenses of £520,157 in Q2 2024
were lower than Q2 2023 at £1,097,738. This has decreased primarily due to
share-based payment expenses of £116,280 (Q2 2023: £158,120), professional
fees of £123,744 (Q2 2023: £236,877), directors and staff costs of £130,234
(Q2 2023: £301,576), downstream processing costs of £6,143 (Q2 2023:
£113,034), legal fees of £7,220 (Q2 2023: £29,809), audit fees of £24,566
(Q2 2023: £36,900) and a foreign currency loss of £17,636 (Q2 2023: loss of
£140,575).
· The consolidated loss before tax for H1 2024 decreased to
£976,478 (H1 2023: £1,799,616). This decrease is primarily due to
share-based payment expenses of £126,432 (H1 2023: £238,843), professional
fees of £293,779 (H1 2023: £405,196), directors and staff costs of £233,149
(H1 2023: £424,875), and a foreign currency loss of £33,253 (H1 2023:
£199,393), combined with finance costs in relation to the bridging loan of
£59,147 (H1 2023: £195,304), which was fully repaid in the period.
· Consolidated basic and diluted loss per share for the quarter
ended 30 June 2024 was 1.81 pence (Q2 2023: loss of 4.40 pence restated for
the 50 to 1 share consolidation in Q2 FY24).
· The Company raised SEK 56.3 million (approximately £4.4
million) before expenses as part of the Capital Raise, of which, the net
proceeds have been used to repay the bridging loan principal and interest of
SEK 10.3 million (approximately £0.76 million).
· £2,686,189 in cash was held at 30 June 2024 (30 June 2023:
£2,855,840).
· Exploration assets increased to £15,211,731 at 30 June 2024
compared to £13,588,729 at 30 June 2023.
· The cumulative translation losses held in equity increased by
£446,232 in the period ended 30 June 2024 to £1,904,104 (31 December 2023:
loss of £1,457,872). Much of the Company's exploration costs are in Swedish
Krona which has weakened against the GB Pound Sterling since 31 December 2023.
· At 30 June 2024, there were 32,018,357 Swedish Depository
Receipts representing 82.43% per cent of the issued share capital of the
Company. The remaining issued share capital of the Company is held in the UK.
Ed Bowie, Chief Executive Officer of Beowulf, commented:
"Significant progress has been made across the Company's portfolio during the
Period.
"With the appointment of Dmytro, the leadership of Jokkmokk Iron is now on a
sure footing and we continue to work with a team of market leading
consultants. Activity at Gállok is ramping, with the EIA consultation process
planned to commence in September and multiple ongoing workstreams in
preparation for the PFS. Our focus over the coming months remains on advancing
these workstreams, whilst delivering a robust Environmental Permit
application.
"In Finland, test-work in preparation for the conclusion of the GAMP PFS
targeted for the end of the year. This is the first comprehensive test-work,
taking graphite concentrate through the full process to produce battery grade
graphite anode material, and thus, is a significant advancement for the GAMP.
"Finally, in Kosovo, we consolidated 100% ownership in Vadar Minerals,
significantly reducing the holding costs and giving us full flexibility to
grow the subsidiary. Following the excellent results from the Shala East
licence released on 4 March 2024, the Vardar team are completing the infill
soil and rock chip sampling programme to better define the key target areas.
With the re-instatement of the ICMM Board, we anticipate receipt of our
exploration licence renewals in the coming months.
"Having now spent a year in post, I am pleased by the excellent progress we
have made both corporately and at asset level. We are building a skilled and
dedicated team, working more closely with local stakeholders and the
advancement of the projects represents a very significant derisking both from
technical and permitting perspectives. Despite this progress, equity markets
remain challenging and the Company's share price has performed poorly. We
remain focused on further derisking the Company's assets, demonstrating their
true value and closing the market disconnect. I would like to thank
shareholders for their continued support, and I look forward to providing
further updates as we look to realise the portfolio's extensive potential."
Enquiries:
Beowulf Mining plc
Ed Bowie, Chief Executive Officer ed.bowie@beowulfmining.com
SP Angel
(Nominated Adviser & Joint Broker)
Ewan Leggat / Stuart Gledhill / Adam Cowl Tel: +44 (0) 20 3470 0470
Alternative Resource Capital
(Joint Broker)
Alex Wood Tel: +44 (0) 20 7186 9004
BlytheRay
Tim Blythe / Megan Ray Tel: +44 (0) 20 7138 3204
Cautionary Statement
Statements and assumptions made in this document with respect to the Company's
current plans, estimates, strategies and beliefs, and other statements that
are not historical facts, are forward-looking statements about the future
performance of Beowulf. Forward-looking statements include, but are not
limited to, those using words such as "may", "might", "seeks", "expects",
"anticipates", "estimates", "believes", "projects", "plans", strategy",
"forecast" and similar expressions. These statements reflect management's
expectations and assumptions in light of currently available information. They
are subject to a number of risks and uncertainties, including, but not limited
to , (i) changes in the economic, regulatory and political environments in the
countries where Beowulf operates; (ii) changes relating to the geological
information available in respect of the various projects undertaken; (iii)
Beowulf's continued ability to secure enough financing to carry on its
operations as a going concern; (iv) the success of its potential joint
ventures and alliances, if any; (v) metal prices, particularly as regards iron
ore. In the light of the many risks and uncertainties surrounding any mineral
project at an early stage of its development, the actual results could differ
materially from those presented and forecast in this document. Beowulf assumes
no unconditional obligation to immediately update any such statements and/or
forecast.
About Beowulf Mining plc
Beowulf Mining plc ("Beowulf" or the "Company") is an exploration and
development company, listed on the AIM market of the London Stock Exchange and
the Spotlight Exchange in Sweden. The Company listed in Sweden in 2008 and, as
at 30 June 2024, was 82.43 per cent owned by Swedish shareholders.
Beowulf's purpose is to be a responsible and innovative company that creates
value for our shareholders, wider society and the environment, through
sustainably producing critical raw materials, which includes iron ore,
graphite and base metals, needed for the transition to a Green Economy.
The Company has an attractive portfolio of assets, including commodities such
as iron ore, graphite, gold and base metals, with activities in exploration,
the development of mines and downstream production in Sweden, Finland and
Kosovo.
The Company's most advanced project is the Gállok iron ore asset in northern
Sweden from which testwork has produced a 'market leading' magnetite
concentrate of 71.5 per cent iron content. In the Gállok area, the Mineral
Resources of the deposits have been classified according to the PERC Standards
2017, as was reported by the Company via RNS on 25 May 2021, based on a
revised resource estimation by Baker Geological Services. The total Measured
and Indicated resource reports at 132 million tonnes ("Mt") grading 28.3 per
cent iron ("Fe"), with an Inferred Mineral Resource of 39 Mt grading 27.1 per
cent Fe.
In Finland, Grafintec, a wholly-owned subsidiary, is developing a resource
footprint of natural flake graphite and the capability to serve the anode
manufacturing industry. Grafintec is working towards creating a sustainable
value chain in Finland from high quality natural flake graphite resources to
anode material production, leveraging renewable power, targeting Net Zero
CO(2) emissions across the supply chain.
In Kosovo, the Company owns 100% per cent of Vardar Minerals ("Vardar"), which
is focused on exploration in the Tethyan Belt, a major orogenic metallogenic
province for gold and base metals. Vardar is delivering exciting results for
its Mitrovica licence which has several exploration targets, including lead,
zinc, copper and gold. It also has the Viti and Shala licence areas which are
showing potential for copper-gold porphyry mineralisation. With Beowulf's
support, Vardar is focused on making a discovery.
Gállok is the foundation asset of the Company, and, with Grafintec and
Vardar, each business area displays strong prospects, and presents
opportunities to grow, with near-term and longer-term value-inflection points.
Beowulf wants to be recognised for living its values of Respect, Partnership
and Responsibility. The Company's ESG Policy is available on the website
following the link below:
https://beowulfmining.com/about-us/esg-policy/
(https://beowulfmining.com/about-us/esg-policy/)
BEOWULF MINING PLC
CONDENSED CONSOLIDATED INCOME STATEMENT
FOR THE SIX MONTHS TO 30 JUNE 2024
Notes (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited)
3 months ended 3 months ended 6 months ended 6 months ended 12 months ended
30 30 30 30 31 December 2023
June June June June
2024 2023 2024 2023 £
£ £ £ £
Continuing operations
Administrative expenses (520,157) (1,097,738) (917,980) (1,691,473) (2,501,263)
Impairment of exploration assets - - - - (350,158)
Operating loss (520,157) (1,097,738) (917,980) (1,691,473) (2,851,421)
Finance costs 3 (27,271) (199) (60,175) (195,735) (197,724)
Finance income 775 3,179 1,677 3,637 7,923
Grant income - 59,199 - 83,955 96,750
Recovery of impairment on listed investment - - - - 6,563
Loss before and after taxation (546,653) (1,035,559) (976,478) (1,799,616) (2,937,909)
Loss attributable to:
Owners of the parent (546,628) (1,017,310) (959,438) (1,760,745) (2,863,959)
Non-controlling interests (25) (18,249) (17,040) (38,871) (73,950)
(546,653) (1,035,559) (976,478) (1,799,616) (2,937,909)
Loss per share attributable to the owners of the parent:
Basic and diluted 4 (1.81) (4.40) (3.18) (8.69) (13.20)
(pence)
BEOWULF MINING PLC
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE LOSS
FOR THE SIX MONTHS TO 30 JUNE 2024
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited)
3 months ended 3 months ended 6 months ended 6 months ended 12 months
30 30 30 30 ended
June June June June 31 December 2023
2024 2023 2024 2023
£ £
£ £ £
Loss for the period/year (546,653) (1,035,559) (976,478) (1,799,616) (2,937,909)
Other comprehensive loss
Items that may be reclassified subsequently to profit or loss:
Exchange losses arising on translation of foreign operations 49,808 (639,760) (466,226) (784,607) (196,950)
Total comprehensive loss (496,845) (1,675,319) (1,442,704) (2,584,223) (3,134,859)
Total comprehensive loss attributable to:
Owners of the parent (496,850) (1,631,619) (1,405,670) (2,511,641) (3,032,416)
Non-controlling interests 5 (43,700) (37,034) (72,582) (102,443)
(496,845) (1,675,319) (1,442,704) (2,584,223) (3,134,859)
BEOWULF MINING PLC
CONDENSED COMPANY STATEMENT OF COMPREHENSIVE LOSS
FOR THE SIX MONTHS TO 30 JUNE 2024
Notes (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited)
3 months ended 3 months ended 6 months ended 6 months ended 12 months ended
30 30 30 30 31 December 2023
June June June June
2024 2023 2024 2023 £
£ £ £ £
Continuing operations
Administrative expenses (485,521) (1,217,899) (851,632) (1,623,456) (2,778,142)
Operating loss (485,521) (1,217,899) (851,632) (1,623,456) (2,778,142)
Finance costs 3 (26,747) - (59,147) (195,304) (195,304)
Finance income 796 3,063 1,631 3,487 7,655
Recovery of impairment on listed asset - - - - 6,563
Loss before and after taxation and total comprehensive loss (511,472) (1,214,836) (909,148) (1,815,273) (2,959,228)
Loss per share attributable to the owners of the parent:
Basic and diluted (pence) 4 (1.69) (5.25) (3.01) (8.96) (13.64)
BEOWULF MINING PLC
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2024
(Unaudited) (Unaudited) (Audited)
As at As at As at
30 June 30 June 31 December
2024 2023 2023
£ £ £
ASSETS Notes
Non-current assets
Intangible assets 7 15,211,731 13,588,729 14,873,326
Property, plant and equipment 72,456 110,435 87,755
Investments 6,563 - 6,563
Loans and other financial assets 5,162 5,020 5,209
Right of use asset 70,421 12,402 63,158
15,366,333 13,716,586 15,036,011
Current assets
Trade and other receivables 278,472 190,419 152,004
Cash and cash equivalents 2,686,189 2,855,840 905,555
2,964,661 3,046,259 1,057,559
TOTAL ASSETS 18,330,994 16,762,845 16,093,570
EQUITY
Shareholders' equity
Share capital 5 12,356,927 11,571,875 11,571,875
Share premium 29,888,289 27,141,444 27,141,444
Capital contribution reserve 46,451 46,451 46,451
Share-based payment reserve 6 923,936 754,941 903,766
Merger reserve 870,275 137,700 137,700
Translation reserve (1,904,104) (2,040,311) (1,457,872)
Accumulated losses (24,231,417) (22,132,300) (23,235,514)
Total equity 17,950,357 15,479,800 15,107,850
Non-controlling interests (164,778) 544,291 514,430
TOTAL EQUITY 17,785,579 16,024,091 15,622,280
LIABILITIES
Current liabilities
Trade and other payables 499,479 726,152 433,662
Borrowings 8 - - -
Lease liability 24,609 8,792 22,575
524,088 734,944 456,237
Non-current liabilities
Lease liability 21,327 3,810 15,053
21,327 3,810 15,053
TOTAL LIABILITIES 545,415 738,754 471,290
TOTAL EQUITY AND LIABILITIES 18,330,994 16,762,845 16,093,570
BEOWULF MINING PLC
CONDENSED COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2024
Notes (Unaudited) (Unaudited) (Audited)
As at As at As at
30 June 30 June 31 December 2023
2024 2023 £
£ £
ASSETS
Non-current assets
Investments 4,809,509 3,967,150 3,967,878
Loans and other financial assets 13,664,383 12,232,430 12,839,865
Property, plant and equipment 843 730 964
18,474,735 16,200,310 16,808,707
Current assets
Trade and other receivables 62,416 42,845 49,155
Cash and cash equivalents 2,571,639 2,608,373 794,909
2,634,055 2,651,218 844,064
TOTAL ASSETS 21,108,790 18,851,528 17,652,771
EQUITY
Shareholders' equity
Share capital 5 12,356,927 11,571,875 11,571,875
Share premium 29,888,289 27,141,444 27,141,444
Capital contribution reserve 46,451 46,451 46,451
Share-based payment reserve 6 923,936 754,941 903,766
Merger reserve 870,275 137,700 137,700
Accumulated losses (23,079,568) (21,132,728) (22,276,683)
TOTAL EQUITY 21,006,310 18,519,683 17,524,553
LIABILITIES
Current liabilities
Trade and other payables 102,480 331,845 128,218
Borrowings 8 - - -
TOTAL LIABILITIES 102,480 331,845 128,218
TOTAL EQUITY AND LIABILITIES 21,108,790 18,851,528 17,652,771
BEOWULF MINING PLC
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS TO 30 JUNE 2024
Share capital Share premium Capital contribution reserve Share-based payment reserve Merger reserve Translation reserve Accumulated losses Total Non- Total equity
controlling
interest
£ £ £ £ £ £ £ £ £ £
8,317,106 24,689,311 46,451 516,098 137,700 (1,289,415) (20,323,414) 12,093,837 568,732 12,662,569
At 1 January 2023
Loss for the period - - - - - - (1,760,745) (1,760,745) (38,871) (1,799,616)
Foreign exchange translation - - - - - (750,896) - (750,896) (33,711) (784,607)
Total comprehensive loss - - - - - (750,896) (1,760,745) (2,511,641) (72,582) (2,584,223)
Transactions with owners
Issue of share capital 3,254,769 3,654,829 - - - - - 6,909,598 - 6,909,598
Issue costs - (1,202,696) - - - - - (1,202,696) - (1,202,696)
Equity-settled share-based payment transactions - - - 238,843 - - - 238,843 - 238,843
Step acquisition of Subsidiary - - - - - - (48,141) (48,141) 48,141 -
At 30 June 2023 (Unaudited) 11,571,875 27,141,444 46,451 754,941 137,700 (2,040,311) (22,132,300) 15,479,800 544,291 16,024,091
Loss for the period - - - - - - (1,103,214) (1,103,214) (35,079) (1,138,293)
Foreign exchange translation - - - - - 582,439 - 582,439 5,218 587,657
Total comprehensive loss - - - - - 582,439 (1,103,214) (520,775) (29,861) (550,636)
Transactions with owners
Issue of share capital - - - - - - - - - -
Equity-settled share-based payment transactions - - - 148,825 - - - 148,825 - 148,825
Transfer reserve on lapse of option
At 31 December 2023 (Audited) 11,571,875 27,141,444 46,451 903,766 137,700 (1,457,872) (23,235,514) 15,107,850 514,430 15,622,280
Loss for the period - - - - - - (959,438) (959,438) (17,040) (976,478)
Foreign exchange translation - - - - - (446,232) - (446,232) (19,994) (466,226)
Total comprehensive loss - - - - - (446,232) (959,438) (1,405,670) (37,034) (1,442,704)
Transactions with owners
Issue of share capital 732,725 3,657,859 - - - - - 4,390,584 - 4,390,584
Issue costs - (911,014) - - - - - (911,014) - (911,014)
Issue of share capital for acquisition of NCI 52,327 - - - 732,575 - - 784,902 - 784,902
Equity-settled share-based payment transactions - - - 126,433 - - - 126,433 - 126,433
Step acquisition of Subsidiary - - - - - - (142,728) (142,728) (642,174) (784,902)
Transfer on lapse of options - - - (106,263) - - 106,263 - - -
At 30 June 2024 (Unaudited) 12,356,927 29,888,289 46,451 923,936 870,275 (1,904,104) (24,231,417) 17,950,357 (164,778) 17,785,579
BEOWULF MINING PLC
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS TO 30 JUNE 2024
Share capital Share premium Capital contribution reserve Share-based payment reserve Merger reserve Accumulated losses Total
£ £ £ £ £ £ £
8,317,106 24,689,311 46,451 516,098 137,700 (19,317,455) 14,389,211
At 1 January 2023
Loss for the period - - - - - (1,815,273) (1,815,273)
Total comprehensive loss - - - - - (1,815,273) (1,815,273)
Transactions with owners
Issue of share capital 3,254,769 3,654,829 - - - - 6,909,598
Issue costs - (1,202,696) - - - - (1,202,696)
Equity-settled share-based payment transactions - - - 238,843 - - 238,843
At 30 June 2023 (Unaudited) 11,571,875 27,141,444 46,451 754,941 137,700 (21,132,728) 18,519,683
Loss for the period - - - - - (1,143,955) (1,143,955)
Total comprehensive loss - - - - - (1,143,955) (1,143,955)
Transactions with owners
Equity-settled share-based payment transactions - - - 148,825 - - 148,825
At 31 December 2023 (Audited) 11,571,875 27,141,444 46,451 903,766 137,700 (22,276,683) 17,524,553
Loss for the period - - - - - (909,148) (909,148)
Total comprehensive loss - - - - - (909,148) (909,148)
Transactions with owners
Issue of share capital 732,725 3,657,859 - - - - 4,390,584
Issue costs - (911,014) - - - - (911,014)
Issue of share capital for acquisition of NCI 52,327 - - - 732,575 - 784,902
Equity-settled share-based payment transactions - - - 126,433 - - 126,433
Transfer on lapse of options - - - (106,263) - 106,263 -
At 30 June 2024 (Unaudited) 12,356,927 29,888,289 46,451 923,936 870,275 (23,079,568) 21,006,310
BEOWULF MINING PLC
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS TO 30 JUNE 2024
(Unaudited) (Unaudited) (Audited)
6 months to 6 months to Year ended
30 June 30 June 31 December
2024 2023 2023
£ £ £
Cash flows from operating activities
Loss before income tax (976,478) (1,799,615) (2,937,909)
Depreciation of property, plant and equipment 13,390 21,812 43,276
Amortisation of right-of-use asset 17,334 4,473 29,478
Equity-settled share-based transactions 126,433 238,843 387,668
Impairment of exploration costs - - 350,158
Loss on disposal of property, plant and equipment - - 643
Gain on disposal of right of use assets - - (58)
Finance income (1,677) (3,636) (7,923)
Finance cost 60,175 195,735 197,724
Grant income - (83,955) (96,750)
Unrealised foreign exchange 56,187 136,635 86,637
Recovery of impairment on listed investment - - (6,563)
(704,636) (1,289,708) (1,953,619)
(Increase)/decrease trade and other receivables (126,291) 26,630 61,395
(Decrease)/Increase in trade and other payables (26,270) 120,049 (277,400)
Net cash used in operating activities (857,197) (1,143,029) (2,169,624)
Cash flows from investing activities
Purchase of intangible fixed assets (853,180) (1,325,909) (2,308,473)
Purchase of property, plant and equipment (5,257) (6,277) (7,052)
Payments for improvements of right of use assets - - (33,121)
Interest received 1,678 3,636 7,923
Grant receipt 143,639 83,955 96,750
Net cash used in investing activities (713,120) (1,244,595) (2,243,973)
Cash flows from financing activities
Proceeds from issue of shares 4,390,584 4,373,056 4,373,056
Payment of share issue costs (911,014) (704,587) (704,587)
Proceeds from borrowings 723,881 - -
Repayment of loan principal (699,172) - -
Interest paid on borrowings (59,147) - -
Lease principal paid (12,025) (6,296) (21,228)
Lease interest paid (1,028) (431) (2,420)
Net cash from financing activities 3,432,079 3,661,742 3,644,821
Increase/(decrease) in cash and cash equivalents 1,861,762 1,274,118 (768,776)
Cash and cash equivalents at beginning of period/year 905,555 1,776,556 1,776,556
Effect of foreign exchange rate changes (81,128) (194,834) (102,225)
Cash and cash equivalents at end of period/year 2,686,189 2,855,840 905,555
BEOWULF MINING PLC
CONDENSED COMPANY STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS TO 30 JUNE 2024
(Unaudited) (Unaudited) (Audited)
6 months to 6 months to Year ended
30 June 30 June 31 December 2023
2024 2023
£ £ £
Cash flows from operating activities
Loss before income tax (909,148) (1,815,273) (2,959,228)
Expected credit losses 181,922 414,831 1,001,537
Equity-settled share-based transactions 69,864 166,873 321,534
Depreciation of property, plant and equipment 120 104 233
Loss on disposal of property, plant and equipment - - 643
Finance income (1,631) (3,487) (7,655)
Finance cost 59,147 195,304 195,304
Unrealised foreign exchange 56,187 136,635 86,637
Recovery of impairment on listed investment - - (6,563)
(543,539) (905,013) (1,367,558)
(Increase)/decrease in trade and other receivables (13,261) 10,439 4,129
(Decrease)/increase in trade and other payables (25,735) 115,576 (88,052)
Net cash used in operating activities (582,535) (778,998) (1,451,481)
Cash flows from investing activities
Loans to subsidiaries (1,006,440) (1,562,972) (2,757,113)
Financing of subsidiary - (250,000) (250,000)
Interest received 1,631 3,487 7,655
Purchase of property, plant and equipment - - (1,006)
Net cash used in investing activities (1,004,809) (1,809,485) (3,000,464)
Cash flows from financing activities
Proceeds from issue of shares 4,390,584 4,373,056 4,373,056
Payment of share issue costs (911,014) (704,587) (704,587)
Proceeds from borrowings 723,881 - -
Repayment of loan principal (699,172) - -
Interest paid on borrowings (59,147) - -
Net cash from financing activities 3,445,132 3,668,469 3,668,469
Increase/(decrease) in cash and cash equivalents 1,857,788 1,079,986 (783,476)
Cash and cash equivalents at beginning of period/year 794,909 1,667,840 1,667,840
Effect of foreign exchange rate changes (81,058) (139,453) (89,455)
Cash and cash equivalents at end of period/year 2,571,639 2,608,373 794,909
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED INTERIM FOR THE SIX MONTHS TO 30
JUNE 2024
1. Nature of Operations
Beowulf Mining plc (the "Company") is domiciled in England and Wales. The
Company's registered office is 201 Temple Chambers, 3-7 Temple Avenue, London,
EC4Y 0DT. This consolidated financial information comprises that of the
Company and its subsidiaries (collectively the 'Group' and individually 'Group
companies'). The Group is engaged in the acquisition, exploration and
evaluation of natural resources assets and has not yet generated revenues.
2. Basis of preparation
The condensed consolidated financial information has been prepared on the
basis of the recognition and measurement requirements of UK-adopted
International Accounting Standards ("IFRS"). The accounting policies, methods
of computation and presentation used in the preparation of the interim
financial information are the same as those used in the Group's audited
financial statements for the year ended 31 December 2023 except as noted
below.
The financial information in this statement does not constitute full statutory
accounts within the meaning of Section 434 of the UK Companies Act 2006. The
financial information for the period ended 30 June 2024 is unaudited and has
not been reviewed by the auditors.
The financial information for the twelve months ended 31 December 2023 is an
extract from the audited financial statements of the Group and Company. The
auditor's report on the statutory financial statements for the year ended 31
December 2023 was unqualified but did include a material uncertainty relating
to going concern.
The financial statements are presented in GB Pounds Sterling. They are
prepared on the historical cost basis or the fair value basis where the fair
valuing of relevant assets and liabilities has been applied.
On 3 April 2024, the Company announced the completion of the capital raise
with a total of £4.3 million (SEK 56.3 million) gross raised to fund the
development of the Company's assets through their next key valuation
milestones.
Therefore, at the date of this report, based on management prepared cashflow
forecasts, the Directors are confident that the Group and Company has raised
sufficient capital to fund the Group's key projects and investments for the
period to June 2025, but note that further funds will be required within a few
months post this date to allow the Group and Company to realise its assets and
discharge its liabilities in the normal course of business. There are
currently no agreements in place and there is no certainty that the funds will
be raised within the appropriate timeframe. These conditions indicate the
existence of a material uncertainty which may cast significant doubt over the
Group's and the Company's ability to continue as going concerns and therefore,
the Group and the Parent Company may be unable to realise their assets and
discharge their liabilities in the normal course of business. The Directors
will continue to explore funding opportunities at both asset and corporate
levels. The Directors have a reasonable expectation that funding will be
forthcoming based on their past experience and therefore believe that the
going concern basis of preparation is deemed appropriate and as such the
financial statements have been prepared on a going concern basis. The
financial statements do not include any adjustments that would result if the
Group and the Company were unable to continue as going concerns.
3. Finance costs
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited)
3 months 3 months 6 months 6 months 12 months
ended ended ended ended ended
Group 30 30 30 30 31 December 2023
June June June June
2024 2023 2024 2023
£ £ £ £ £
Bridging loan amortised interest 26,747 - 59,147 195,304 195,304
Lease liability interest 524 199 1,028 431 2,420
27,271 199 60,175 195,735 197,724
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited)
3 months 3 months 6 months 6 months 12 months
ended ended ended ended ended
Parent 30 30 30 30 31 December 2023
June June June June
2024 2023 2024 2023
£ £ £ £ £
Bridging loan amortised interest 26,747 - 59,147 195,304 197,724
26,747 - 59,147 195,304 197,724
4. Loss per share
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited)
3 months 3 months 6 months 6 months 12 months
ended ended ended ended ended
Group 30 30 30 30 31
June June June June December 2023
2024 2023 2024 2023
Loss for the period/year attributable to shareholders of the Company (£'s) (546,628) (1,017,310) (959,438) (1,760,745) (2,863,959)
Weighted average number of ordinary shares 30,184,261 23,143,749 30,184,261 20,250,622 21,699,167
Loss per share (p) (1.81) (4.40) (3.18) (8.69) (13.20)
Parent
Loss for the period/year attributable to shareholders of the Company (£'s) (511,472) (1,214,836) (909,148) (1,815,273) (2,959,228)
Weighted average number of ordinary shares 30,184,261 23,143,749 30,184,261 20,250,622 21,699,167
Loss per share (p) (1.69) (5.25) (3.01) (8.96) (13.64)
The weighted average number presented for the period ending 30 June 2023 above
and the year ending 31 December 2023 in the statement of comprehensive income
have been adjusted for the effect of a 50 to 1 share consolidation.
5. Share capital
(Unaudited) (Unaudited) (Audited)
30 June 30 June 31 December 2023
2024 2023
£ £ £
Allotted, issued and fully paid
Ordinary shares of 0.1p each - 11,571,875 11,571,875
Ordinary shares of 5p each 1,942,240 - -
Deferred A shares of 0.9p each 10,414,687 - -
Total 12,356,927 11,571,875 11,571,875
The number of shares in issue was as follows:
Number
of ordinary shares
Balance at 1 January 2023 831,710,636
Issued during the period 325,476,827
Balance at 30 June 2023 1,157,187,463
Issued during the period -
Balance at 31 December 2023 1,157,187,463
Issued during the period 15,701,041
Effect of share consolidation (1,134,043,714)
Balance at 30 June 2024 38,844,790
Number
of deferred A shares
Balance at 1 January 2023 -
Issued during the period -
Balance at 30 June 2023 -
Issued during the period -
Balance at 31 December 2023 -
Issued during the period 1,157,187,463
Balance at 30 June 2024 1,157,187,463
On 5 March 2024, each of the existing ordinary shares of 1p each in capital of
the Company was sub-divided and re-classified into 0.1p New Ordinary Share and
0.9p Deferred A Share. The deferred A shares do not entitle the holders
thereof to receive notice of or attend and vote at any general meeting of the
Company or to receive dividends or other distributions or to participate in
any return on capital on a winding up unless the assets of the Company are in
excess of £100,000,000. The Company retains the right to purchase the
deferred shares from any shareholder for a consideration of one pound in
aggregate for all that shareholder's deferred shares.
On the 3 April 2024, the Company announced the completion of the Rights Issue
to issue 12,500,000 ordinary shares of £0.30. The PrimaryBid offer raised
£3.8 million before expenses. In addition to this, 583,333 ordinary shares
were issued for underwriting commitments. As part of the PrimaryBid offer,
1,571,172 ordinary shares were issued to existing retail investors raising
£0.20 million.
On the 9 April 2024, the Company issued 1,046,535 ordinary shares to the
Vardar minority holders for the consolidation of 100 per cent ownership of
Vardar.
On 14 June 2024, the Company consolidated its ordinary share capital resulting
in every 50 existing ordinary shares of £0.001 each being consolidated into 1
new ordinary share of £0.05 each. The number of shares prior to share
consolidation was 1,157,187,463.
At the period end, the Company had 38,844,790 Ordinary Shares in issue (Q2
2023: 1,157,187,463)
6. Share based payments
During the period, 2,560,000 options were granted (year ended 31 December
2023: 465,000). The options outstanding as at 30 June 2024 have an exercise
price in the range of 37.5 pence to 262.5 pence (31 December 2023: 50.0 pence
to 367.5 pence) and a weighted average remaining contractual life of 9 years,
67 days (31 December 2023: 5 years, 294 days).
The share-based payment expense for the options for the period ended 30 June
2024 was £126,433 (Q2 2023: £238,843; year ended 31 December 2023:
£387,668).
The fair value of share options granted and outstanding were measured using
the Black-Scholes model, with the following inputs:
2024 2024 2024 2023 2022 2022
Fair value at grant date 0.48p 0.51p 0.30p 0.52p 3.59p 3.59p
Share price 0.70p 0.73p 0.70p 1.68p 4.00p 4.00p
Exercise price 0.75p 0.75p 0.75p 2.06p 1.00p 1.00p
Expected volatility 77.5% 79.9% 77.5% 55.2% 100.0% 100.0%
Expected option life 6 years 6 years 2 years 2.5 years 6 years 6 years
Contractual option life 10 years 10 years 10 years 5 years 10 years 10 years
Risk free interest rate 4.080% 4.100% 4.480% 4.800% 4.520% 4.520%
Reconciliation of options in issue Number Weighted average exercise price(£'s)
Outstanding at 1 January 2023 275,000 2.750
Granted during the period 465,000 2.400
Lapsed during the period (90,000) 3.680
Outstanding at 30 June 2023 650,000 2.760
Exercisable at 30 June 2023 235,000 3.000
Reconciliation of options in issue Number Weighted average exercise price(£'s)
Outstanding at 1 January 2024 895,000 2.300
Granted during the period 2,560,000 0.375
Lapsed during the period (285,000) 3.307
Outstanding at 30 June 2024 3,170,000 0.651
Exercisable at 30 June 2024 646,667 1.369
No warrants were granted during the period (2023: Nil).
The reconciliation of options in issue presented for the period ending 30 June
2023 has retrospectively adjusted for the effect of a 50 to 1 share
consolidation.
7. Intangible Assets: Group
Exploration assets Other Total
intangible
assets
Net book value £ £ £
As at 31 December 2023 (Audited) 14,797,833 75,493 14,873,326
As at 30 June 2024 (Unaudited) 14,966,891 244,840 15,211,731
Exploration costs As at As at
30 June 31 December
2024 2023
(Unaudited) (Audited)
£ £
Cost
At 1 January 14,797,833 13,002,465
Additions for the year 633,540 2,330,902
Foreign exchange movements (464,482) (185,376)
Impairment - (350,158)
14,966,891 14,797,833
The net book value of exploration costs is comprised of expenditure on the
following projects:
(Unaudited) (Audited)
As at As at
30 June 31 December
2024 2023
£ £
Project Country
Gállok Sweden 9,646,475 9,481,130
Pitkäjärvi Finland 1,651,998 1,667,854
Karhunmäki Finland 73,538 55,935
Rääpysjärvi Finland 172,951 174,060
Luopioinen Finland 4,877 4,812
Emas Finland 43,896 41,693
Mitrovica Kosovo 2,484,329 2,527,239
Viti Kosovo 673,040 680,331
Shala Kosovo 215,787 164,779
14,966,891 14,797,833
Total Group exploration costs of £14,966,891 are currently carried at cost in
the financial statements. No impairment has been recognised during the period,
(2023: £350,158 in projects Ågåsjiegge and Åtvidaberg).
Accounting estimates and judgements are continually evaluated and are based on
a number of factors, including expectations of future events that are believed
to be reasonable under the circumstances. Management is required to consider
whether there are events or changes in circumstances that indicate that the
carrying value of this asset may not be recoverable.
The most significant exploration asset within the Group is Gállok. The
Company originally applied for the Exploitation Concession in April 2013 and
management actively sought to progress the application, engaging with the
various government bodies and other stakeholders. The Exploitation Concession
was finally awarded in March 2022.
Gállok is included in the condensed financial statements as at 30 June 2024
as an intangible exploration licence with a carrying value of £9,646,475
(2023: £9,481,130). Given the Exploitation Concession was awarded, Management
have considered that there is no current risk associated with Gállok and thus
have not impaired the project.
Other intangible assets (Unaudited) (Audited)
As at As at
30 June 31 December
2024 2023
£ £
Cost
At 1 January 75,493 -
Additions for the period/year 172,173 75,779
Foreign exchange movements (2,826) (286)
Total 244,840 75,493
Other intangible assets capitalised are development costs incurred following
the feasibility of GAMP project. This development has attained a stage where
it satisfies the requirements of IAS 38 to be recognised as an intangible
asset whereby it has the potential to be completed and used, provide future
economic benefits, whereby its costs can be measured reliably and there is the
intention and ability to complete. The development costs will be held at cost
less impairment until the completion of the GAMP project at which stage they
will be transferred to the value of the Plant.
8. Borrowings
(Unaudited) (Unaudited)
As at As at
30 June 31 December
2024 2023
£ £
Opening balance - 1,845,947
Funds advanced 723,881 -
Finance costs 59,147 195,304
Effect of FX (24,709) (2,818)
Funds repaid (758,319) (2,038,433)
- -
On 14 February 2024, the Company secured a Bridging loan from Nordic investors
of SEK 10.0 million (approximately £0.76 million). The Loan had a fixed
interest rate of 1.5 per cent per stated 30-day period during the duration.
Accrued interest was compounding. The Loan had a commitment fee of 5.0 per
cent and a Maturity Date of 31 May 2024. The bridging loan principal and
interest totalling £0.758 was repaid early in April 2024 using part of the
proceeds from the capital raise on the right issue.
9. Post balance sheet events
There have been no significant events subsequent to the period end.
10. Availability of interim report
A copy of these results will be made available for inspection at the Company's
registered office during normal business hours on any weekday. The Company's
registered office is at 207 Temple Chambers, 3-7 Temple Avenue, London, EC4Y
0DT. A copy can also be downloaded from the Company's website at
https://beowulfmining.com/. Beowulf Mining plc is registered in England and
Wales with registered number 02330496.
** Ends **
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