REG - ECR Minerals PLC - Half-Year Results for 6 months to 31 March 2024
20/06/2024 07:15
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RNS Number : 1369T ECR Minerals PLC 20 June 2024
ECR MINERALS plc
("ECR Minerals", "ECR" or the "Company" and with its subsidiaries the "Group")
Unaudited Half-Yearly Results for the Six Months Ended 31 March 2024 and
Business Update
ECR Minerals plc (LON: ECR), the exploration and development company focused
on gold in Australia, is pleased to announce its unaudited half-yearly
financial results for the six months ended 31 March 2024 for the Company,
along with a review of significant developments during and post period.
HIGHLIGHTS
Operational highlights:
· Geological mapping at Lolworth led to the discovery of numerous
quartz outcrops within the ridgeline above those gold bearing streams in the
Upper Gorge Creek area with best results from rock chipping of 13.75 g/t Au,
3.13 g/t Au and 2.17 g/t Au over a number of outcrops measuring up to 3m wide
x 20m long
· Discovery of a rhyolitic dyke in Gorge Creek East, Lolworth 5.5m
wide x 200m long having anomalous gold valueswith the best rock chip from the
centre of the dyke returning 8.02 g/t Au
· Results from mapping a quartz veinlet system within the upper creek
drainage of Flaggy Creek, Lolworth over a length of 70 metres long and
within a zone up to 100m wide have proven to be gold-bearing with best results
being 6.05 g/t Au, 5.96 g/t Au, 4.66 g/t Au and 3.97 g/t Au
· Application submitted for an Exploration Licence at Kondaparinga,
Queensland, approximately 120km(2) in area within the Hodgkinson Gold
Province
· Broader mineralisation and increased levels of high-grade gold
reported from our drilling programme at Creswick, Victoria, with best
individual grades 8.87g/t Au and 8.06g/t Au
· Bulk sample testing at Davey Road, Victoria indicated extensive gold
mineralisation, with a best result of 41.03 g/t Au
· Tambo rock chip results comfortably exceeded those from previous
exploration activities, with eight samples having gold grades greater than 5
g/t Au and best results of 51.5 g/t Au, 26.5 g/t Au and 24 g/t Au
Financial highlights:
· Sale of non-core assets realise A$420,000
· Ongoing examination of historic tax losses of A$75 million to
potentially unlock significant value
· Cost reductions through salary sacrifice scheme and closure of London
office
· Two fundraisings completed in September 2023 and March 2024 to raise
almost £1.2 million in aggregate
Nick Tulloch Chairman said: "In the nine months since Mike Whitlow and I
joined ECR, we have sought to implement a step change in the pace of our
operations, coupling increased activity in our Australian projects with a
prudent approach to cash management. Mike and I have always viewed ECR's
project portfolio as a potential sleeping giant, and now with the results and
developments reported across our tenements in recent months, we believe the
Company is well on the way to realising the value of these assets."
"As a Board, we are receptive to ideas to add value, new initiatives and
projects to our operations. In recent months we have received approaches from
other businesses in the resources sector offering co-development and other
collaborative opportunities. While these developments in themselves have
served to further confirm the nascent value within our project portfolio, in
line with our own projects, we have retained a conservative approach to these
discussions. Expanding ECR's business is high on our agenda but we will do
so only when we are satisfied the risk is low and that we can maximise gains
for our shareholders."
"For the remainder of 2024, I want to reassure shareholders that, following on
from a very successful period of work in Victoria, they can look forward to
further newsflow as we re-commence our operations in Queensland."
FOR FURTHER INFORMATION, PLEASE CONTACT:
ECR Minerals plc Tel: +44 (0) 1738 317 693
Nick Tulloch, Chairman
Andrew Scott, Director
Email: info@ecrminerals.com (mailto:info@ecrminerals.com)
Website: www.ecrminerals.com
(http://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.ecrminerals.com%2F&esheet=51817334&newsitemid=20180605005810&lan=en-US&anchor=www.ecrminerals.com&index=1&md5=820ad49dc1fc2c84a0538453c017bc1b)
WH Ireland Ltd Tel: +44 (0) 207 220 1666
Nominated Adviser
Katy Mitchell / Andrew de Andrade
Axis Capital Markets Limited Tel: +44 (0) 203 026 0320
Broker
Ben Tadd/Lewis Jones
SI Capital Ltd Tel: +44 (0) 1483 413500
Broker
Nick Emerson
Brand Communications Tel: +44 (0) 7976 431608
Public & Investor Relations
Alan Green
CHAIRMAN'S STATEMENT
In the six months since Mike Whitlow, as COO, and I joined ECR, we have a
considerable amount to update shareholders on.
Against the backdrop of ongoing challenging stock market conditions around the
world for small companies, we have raised close to £1.2 million of new funds,
seen the share price increase by over 70 per cent. and daily trading volumes
rise by over 200 per cent. As we head into the second half of our financial
year, we consider ECR to be well capitalised, with an extensive and fully
funded exploration programme underway. We also believe we have significantly
raised the investment profile of the Company with new and potential investors.
With gold prices setting new highs this year, we have a great deal to look
forward to.
There are many uncertainties for investors in 2024. With forthcoming
elections in the UK and the US and ongoing conflicts in the Ukraine and Gaza,
the changing macro picture around the world creates both challenges and
opportunities. Failing interest rates may rekindle enthusiasm for junior
explorers and gold's safe-haven status may provide ongoing sanctuary for
capital in turbulent times. These factors are of course outside of our
control but our commitment to shareholders is to focus on the areas that we
can influence whilst continuing to build our following with new investors.
ECR has established a new reputation for frugal use of our capital resources,
minimising our operating costs whilst spending our funds wisely on developing
our portfolio of assets. I said in our annual report in March 2024 that, for
a small company, we have an extensive portfolio of projects and I have
summarised below how we envisage developing these over the remainder of this
calendar year.
All members of the board are fully aligned with shareholders. The salary
sacrifice, first announced in September 2023 has since been extended through
to the end of June this year. Mike and I have a remuneration scheme that is
almost 90 per cent. based in ECR shares which themselves are linked to
performance. Elsewhere we have closed our London office with a projected
annual saving of over £50,000 and sold assets in Australia that were not
being utilised for A$420,000.
With our growing financial strength and investor following, it will be no
surprise that we are attracting enquiries from other companies looking for
support to develop parts of their asset base or disposals of projects that
they may no longer be in a position to develop. The ability to expand ECR
through acquisition at this stage in the commodity cycle may be significant
and, over the past months, we have actively examined several such
opportunities. In line with our approach to our own assets, we will remain
conservative and value-orientated. Any cash commitments that we take on will
be directed towards ground work and not purchase prices and any new project
must be capable of producing significant gains for our shareholders.
Nevertheless our primary focus is on our existing projects and I am pleased to
provide the following updates of work carried out in the period and planned
for the near term.
QUEENSLAND
Lolworth
Much of ECR's focus during 2023 was on the development of our Queensland
assets, and in particular the gold and battery metals at the Lolworth Range
area in Northern Queensland, a 'greenfield' project with some 900 square km of
ground to explore. Approximately 700km(2) of the project has now been
initially explored by stream sampling. Gold, Niobium-Tantalum and REE (in
particular Neodymium) are the main commodities discovered from the stream
sampling programmes.
An extensive fieldwork campaign of soil sampling and rock chips was
successfully completed before the natural break for weather conditions and the
results supported our thesis that Lolworth has become a bona fide exploration
opportunity. Visible gold was found in creeks that have had no modern
exploration. Best results to date include 1395 ppm Au (Gorge Creek), 962 ppm
Au (Butterfly Creek) and 594 ppm Au (Reedy Creek) (see our announcement dated
10 January 2024 for the full review of the Lolworth project). Multiple
clusters of gold mineralisation have been found in specific streams of Flaggy
Creek, Gorge Creek West, Reedy Creek West and Butterfly Creek. This led to
outcrop sampling, mapping and soil sampling firstly at Flaggy Creek and then
Gorge Creek West.
Initial rock chip sampling and outcrop mapping at one notable hillslope
at Flaggy Creek was reported last October. Best results from rock chip
sampling included 4.66 g/t Au, 3.97 g/t Au and 3.28 g/t Au. Gold has also been
discovered in quartz fragments lying on the surface, indicating gold veinlets
in a primary source nearby. Where visible, the quartz veining at Flaggy
Creek is aligned in groups of narrow veins that lie parallel to each other.
The veins were traced along the surface for 70 metres before passing under
soil cover. The anecdotal evidence from surface scree and fragments showed the
parallel veins to be in a zone up to 100m wide. The best gold results from the
soil sampling north and south of these veins were 0.41 g/t Au, 0.19 g/t Au and
0.13 g/t Au, highlighting three anomalous values which lie along a discrete
north-easterly trend. Best results from soil sampling at Reedy Creek West was
2.01 g/t Au.
Whilst work is still at an early stage, there are some indications that a much
larger system may be present than has been mapped. A number of exposed
outcrops up to 3m wide x 20m long in the Gorge Creek West ridgeline show gold
results up to 13.75 g/t Au from initial rock chip testing. Furthermore, a
rhyolitic dyke 5m wide x 200m long that contains anomalous gold was discovered
in the Gorge Creek East area. Rock chips collected over the extent of the
outcrop average 0.25 g/t Au, with one best result of 8.02 g/t Au.
Critical listed minerals Niobium-Tantalum (Nb-Ta) and Neodymium, a rare earth
element, have also been discovered in the Oaky Creek drainage system.
The next steps for Lolworth are trenching at Flaggy Creek and Reedy
Creek. We intend to trench across various outcrops and follow up with
reverse circulation drilling. We will also undertake further
reconnaissance for niobium and gold in streams over the eastern tenements
where geological mapping suggests the presence of pegmatite intrusion that
covers approximately 45km(2) . Work will restart in the coming weeks with
the aim being to identify suitable future drill targets which we can then
return to at the first available opportunity.
Kondaparinga
We took the decision to terminate the proposed Hurricane acquisition in
October 2023 and shortly ahead of that applied for a new licence at
Kondaparinga. This area is situated close to the original geological features
that first brought Hurricane to the attention of our field team.
Significantly, the area is also twice the size of Hurricane. The licence
would include an expenditure commitment of A$487,000 thereby costing around a
tenth of what had been earmarked for Hurricane in total by the previous
management. Although work is yet to start, we remain convinced this represents
a better value opportunity for shareholders.
Blue Mountain
In April 2023, ECR announced the conditional acquisition of the Blue Mountain
project, which includes the Denny Gully Gold project, situated south west of
Gladstone port and south east of Biloela, the small regional
pastoral-agricultural-coal mining centre in Queensland. Our Chief Geologist,
Adam Jones, will shortly be conducting ECR's inaugural exploration campaign
at Blue Mountain. Preliminary analysis suggests that work conducted by the
previous operator presents compelling opportunities - especially for its
alluvial gold potential. It is reported to include an alluvial resource which
could potentially yield over 100,000 ounces. Subject to the necessary
permissions, we are looking forward to advancing the project potentially
towards production-readiness. Encouragingly, the landowners have expressed
their willingness to work with us which has further increased our confidence
that the project could well exceed our initial expectations. As with
Lolworth, our aim is to identify suitable drill targets to follow up on at the
first available opportunity.
VICTORIA
Creswick
Historically, a considerable amount of investor interest has centred on our
Creswick project but, prior to Mike and I joining the Company, this dropped
lower down the agenda when the focus moved to Queensland.
However, late in 2023, we took the decision to return to drill at Creswick,
with a twin reverse circulation drilling project at the Davey Road and Kuboid
Hill locations. This decision has been vindicated. Bulk sample testing at
Davey Road, following on from 522 metres of drilling, indicated both extensive
prevalence and pleasing grades of gold with the best result being 41.03 g/t Au
over 1 metre. Results from Creswick, where a total of 1,032 metres was
drilled across 17 holes, were particularly encouraging as they indicated the
hallmarks of a potential future small scale operation. The best individual
grades were 8.87g/t Au and 8.06g/t Au but what is far more significant is
the extensive broad mineralisation demonstrated in several holes where
contiguous gold is present at 3.05g/t Au over 3 metres, 2.25g/t Au over 4
metres and 1g/t Au over 5 metres. The drilling recorded intercepts greater
than 0.5 g/t Au average over a total of 51 metres with the broadest identified
mineralised zone being over 15 metres.
Our 16 acre property at Brewing Lane, which sits within the Creswick tenement,
is no longer required to achieve our strategic objectives there and is up for
sale. This decision is not related to the success we have had at Creswick
but our strategy is to focus on the exploration and development of our
projects and so holding expensive capital assets is not considered to be a
good use of shareholder funds.
Bailieston
The extensive field work and drilling undertaken at the Bailieston property in
previous years maintains this asset as one of our most prominent and as
announced on 7 May 2024 we have recently completed a stream sampling programme
throughout the northern part of the tenements. Best results of 798 ppb Au
and 712 ppb Au were recorded in sampling at three areas with no known
historical workings. Our encouraging findings of surface expression of
anomalous gold give merit to further follow up work.
Tambo
We had previously recorded 22g/t rock chips with silver and bismuth credits at
our licences in eastern Victoria covering the Tambo River and Swifts Creek
region and, in recent weeks, our Chief Geologist Adam Jones has returned to
site. His work included detailed mapping of historical gold workings and the
collection of 56 rock chips and 84 soil samples taken at spaced intervals
across and along strike of the mineralisation to gain a better understanding
of the spread of pathfinder elements. Results exceeded previous exploration
done at Tambo with eight samples having gold grades greater than 5 g/t Au
with our best results being 51.5 g/t Au, 26.5 g/t Au and 24 g/t Au.
Notably, historical mine development below 20 metres from surface remains
unexplored but these encouraging findings support the potential for a drilling
campaign in Tambo in the second half of this year.
It is also worth noting that this recent exploration programme in Tambo was
our first use of PhotonAssay to analyse samples. This is a relatively new,
cost effective and non-destructive analytical technique, which can
significantly reduce both sample preparation time and the receipt of final
analysis.
OTHER ASSETS
Royalties
ECR continues to be entitled to royalties from our former Avoca and Timor
exploration licences being:
1. A$1 for every ounce of gold or gold equivalent of measured
resource, indicated resource or inferred resource estimated, up to a maximum
of A$1,000,000 in aggregate; and
2. A$1 for every ounce of gold or gold equivalent produced, up
to a maximum of A$1,000,000 in aggregate.
ECR retains an NSR royalty of up to 2 per cent. to a maximum of US$2.7 million
in respect of future production from the SLM gold project in La Rioja,
Argentina which was sold in February 2020.
No payments under the Avoca and Timor exploration licence or SLM gold project
were received in the year.
Asset Review
The Group's net assets at 31 March 2024 were £5,338,824 in comparison with
£6,177,800 at 31 March 2023.
Despite maintaining intensive drilling campaigns and exploration activities,
ECR's capital position has improved during the period. The Company raised
£580,000 before expenses in September 2023 and a further £585,000 before
expenses in March 2024, with the latter fundraising being concluded at a more
than 70 per cent. premium to our raise in September 2023. As mentioned above,
the Company has adopted a salary sacrifice scheme for its board, coupled with
a share-based remuneration package for Mike and me, thereby significantly
reducing its cash outlays. Savings from closing the London office are
already being realised but, with this taking place after the period end, are
not yet included in our financials.
In December 2023, we successfully sold a drilling rig and an excavator for a
combined consideration of A$420,000 (with payments for the rig being spread
over nine months) and began steps to sell our property at Brewing Lane (within
the Creswick licence area). We are in the process of obtaining planning
permission for a residential house pending putting the property up for
sale. Given the location of the block, it is a lengthy process but we
believe that, with planning permission, the land value should increase and,
equally importantly, so will the likely audience of buyers.
Importantly, we are now fully funded for our 2024 exploration programme.
ECR's wholly owned Australian subsidiary, Mercator Gold Australia Pty. Ltd,
carries historic tax losses of A$75 million that were incurred in previous
operations in both Victoria and Western Australia. In common with other
countries, transferred tax losses in Australia are subject to certain
restrictions, primarily on similarity of business operations, but nevertheless
the quantum of these losses represents a potentially significant asset for ECR
and work in ongoing to seek to realise this value.
Financial Review
The Group's ongoing activities are solely in mineral exploration and
development. It is not in production at any of its current projects and
therefore has no revenue.
As the Group is not generating revenue from operations, the Directors consider
that profit and loss is a metric of less utility than in many other
businesses. For the year to 31 March 2024 the Group recorded a total
comprehensive loss of £451,412 compared with £724,566 for the corresponding
period to 31 March 2023, reflecting the cost saving measures implemented in
the autumn of 2023 and the sale of the non-core assets in Australia. The
largest contributor to the total comprehensive loss was the administrative
expenses.
The Group's net assets as at 31 March 2024 were £5,192,056 in comparison with
£5,012,403 at 30 September 2023.
Exploration activity took place in both Central Victoria and Northern
Queensland, Australia during the period to 31 March 2024, as discussed in the
Chairman's Report. Capitalised exploration assets are valued at cost; this
value should not be confused with the realisable value of the relevant
projects or be considered to determine the value accorded to the projects by
the stock market, which in both cases may be considerably different.
Outlook
During the period, we have significantly advanced our assets across the group
and, hopefully, as shareholders will observe, our pace of activity has
accelerated into 2024. We have made a conscious effort to re-energise our
investment case and activity levels are high - and reflected in increasing
trading volumes on the stock exchange - so we believe that we have much to
look forward to in the coming year.
Over the remainder of this year, the Company's work programme will include:
· Inaugural exploration campaign at Blue Mountain where work conducted
by the previous operator is reported to include an alluvial resource which
could potentially yield over 100,000 ounces
· Trenching at Flaggy Creek and Reedy Creek in
Lolworth, Queensland - trench across various outcrops followed up with
Reverse Circulation drilling
· Reconnaissance for Niobium, REE and Gold in streams over eastern
tenements in Lolworth where geological mapping suggests the presence of
pegmatite intrusion that covers approximately 45km(2)
· Reverse Circulation drilling at Tambo, Victoria, where the Company
has recorded 51.5g/t gold in rock chips
Through a combination of the placing announced in March 2024, the Board's
focus on cost management and salary sacrifice and last year's assets sale,
these activities are fully funded.
ABOUT ECR MINERALS PLC
ECR Minerals is a mineral exploration and development company. ECR's wholly
owned Australian subsidiary Mercator Gold Australia Pty Ltd ("MGA") has 100%
ownership of the Bailieston and Creswick gold projects in central Victoria,
Australia, has six licence applications outstanding which includes one licence
application lodged in eastern Victoria (Tambo gold project).
ECR also owns 100% of an Australian subsidiary LUX Exploration Pty Ltd ("LUX")
which has three approved exploration permits covering 946 km(2) over a
relatively unexplored area in Lolworth Range, Queensland, Australia. The
Company has also submitted a license application at Kondaparinga which is
approximately 120km2 in area and located within the Hodgkinson Gold
Province, 80km NW of Mareeba, North Queensland.
Following the sale of the Avoca, Moormbool and Timor gold projects in
Victoria, Australia to Fosterville South Exploration Ltd (TSX-V: FSX) and the
subsequent spin-out of the Avoca and Timor projects to Leviathan Gold Ltd
(TSX-V: LVX), MGA has the right to receive up to A$2 million in payments
subject to future resource estimation or production from projects sold to
Fosterville South Exploration Limited. MGA also has approximately A$75
million of unutilised tax losses incurred during previous operations.
ECR holds a royalty on the SLM gold project in La Rioja Province, Argentina
which could potentially receive up to US$2.7 million in aggregate across all
licences.
Consolidated Income Statement
For the six months ended 31 March 2024
Six months ended Six months ended Year ended
31 March 2024 31 March 2023 30 September 2023
£ £ £
Other administrative expenses (540,950) (619,256) (1,320,356)
Impairment of intangible assets - (99,775) -
Currency exchange differences - (2,672) (6,049)
Share based payment - - (156,380)
Total administrative expenses (540,950) (721,703) (1,482,785)
Operating loss (540,950) (721,703) (1,482,785)
Fair value movements on of available for sale assets 1,169 (2,879) (296,905)
Gain or (Loss) on disposal of assets 7,502 (4,233) (4,233)
(532,279) (728,815) (1,783,923)
Financial income 2,334 4,249 3,111
Other income 78,533 - 8,142
Financial expense - - -
Finance income and costs 80,867 4,249 11,253
Loss for the period before taxation (451,412) (724,566) (1,772,670)
Income tax - -
Loss for the period (451,412) (724,566) (1,772,670)
Loss attributable to: Owners of the parent (451,412) (724,566) (1,772,670)
Loss per share - basic and diluted
On continuing operations (0.03)p (0.20)p (0.15)p
Consolidated Statement of Comprehensive Income
For the six months ended 31 March 2024
Six months ended Six months ended Year ended
31 March 2024 31 March 2023 30 September 2023
£ £ £
Loss for the period (451,412) (724,566) (1,772,670)
Items that may be reclassified subsequently to profit or loss
Gain/(losses) on exchange translation (102,873) 154,419 (360,099)
Other comprehensive income/(expense) for the period (102,873) 154,419 (360,099)
Total comprehensive expense for the period (554,285) (570,147) (2,132,769)
Attributable to:-
Owners of the parent (554,285) (570,147) (2,132,769)
Consolidated Statement of Financial Position
At 31 March 2024
As at As at As At
31 March 2024 31 March 2023 30 September 2023
£ £ £
Assets
Non-current assets
Property, plant and equipment 487,105 1,364,665 567,672
Exploration assets 4,570,856 4,228,253 4,420,597
Other receivables - -
5,057,961 5,592,918 4,988,269
Current assets
Trade and other receivables 144,498 123,944 85,383
Inventory - 99,324 -
Available for sale financial assets 11,560 42,207 10,390
Cash and cash equivalents 124,805 319,407 82,462
280,863 584,882 178,235
Total assets 5,338,824 6,177,800 5,166,504
Current liabilities
Trade and other payables 146,768 96,470 154,101
Total liabilities 146,768 96,470 154,101
Net assets 5,192,056 6,081,330 5,012,403
Equity attributable to owners of the parent
Share capital 11,296,527 11,292,044 11,292,415
Share premium 54,925,224 53,972,799 54,195,398
Exchange reserve 463,241 (113,923) 566,114
Other reserves 597,086 440,706 597,086
Retained losses (62,090,022) (59,510,296) (61,638,610)
Total equity 5,192,056 6,081,330 5,012,403
Consolidated Statement of Changes in Equity
For the six months ended 31 March 2024
Share Share Exchange Other Retained Total
Capital
Premium
reserves reserves reserves Equity
£ £ £ £ £ £
At 1 October 2022 11,290,980 53,057,125 811,867 440,706 (59,865,940) 5,734,738
Loss for the period (724,565) (724,565)
Loss on exchange translation (925,790) - 1,080,209 154,419
Total comprehensive income /(expense) - - (925,790) - 355,644 (570,146)
Share issued 1,064 915,674 916,738
Shares issue costs -
Total transactions with owners, recognised directly in equity 1,064 915,674 - - - 916,738
At 31 March 2023 11,292,044 53,972,799 (113,923) 440,706 (59,510,296) 6,081,330
Loss for the period (2,128,314) (2,128,314)
Loss on exchange translation 680,037 680,037
Total comprehensive income /(expense) - - 680,037 - (2,128,314) (1,448,277)
Share issued 371 264,599 264,970
Shares issue costs (42,000) (42,000)
Share based payments 156,380 156,380
Total transactions with owners, recognised directly in equity 371 222,599 - 156,380 - 379,350
At 30 September 2023 11,292,415 54,195,398 566,114 597,086 (61,638,610) 5,012,403
Loss for the period (451,412) (451,412)
Loss on exchange translation (102,873) (102,873)
Total comprehensive income /(expense) - - (102,873) - (451,412) (554,285)
Share issued 4,112 729,826 733,938
Shares issue costs -
Total transactions with owners, recognised directly in equity 4,112 729,826 - - - 733,938
At 31 March 2024 11,296,527 54,925,224 463,241 597,086 (62,090,022) 5,192,056
Consolidated Cash Flow Statement
At 31 March 2024
Six months ended Six months ended Year ended
31 March 2024 31 March 2023 30 September 2023
£ £ £
Net cash flow used in operations (424,750) (698,456) (1,183,552)
Investing activities
(278,679) (167,948)
Purchase of property, plant & equipment
(150,259) (467,334) (779,251)
Decrease/(Increase) in exploration assets
Disposal of asset 35,081 509,212
Investment in subsidiaries
Proceeds from sale of available for sale investments
Decrease/(Increase) in investment
2,334 4,249 3,112
Interest income
Other income
Net cash used in investing activities (112,844) (741,764) (434,875)
Financing activities
579,937 916,738 858,000
Proceeds from issue of share capital
Proceeds from issue of convertible loan notes
Repayment of convertible loan notes
Finance costs on fundraising
Bank loan repaid
Interest paid on convertible loan notes
Interest paid and other financing costs
Net cash from financing activities 579937 916738 858,000
Net change in cash and cash equivalents 42,343 (523,482) (760,427)
Cash and cash equivalents at beginning of the period 82,462 842,889 842,889
Effect of changes in foreign exchange rates
Cash and cash equivalents at end of the period 124,805 319,407 82,462
Notes to the Condensed Half-Yearly Financial Statements
For the six months ended 31 March 2024
1. Basis of preparation
The condensed consolidated half-yearly financial statements incorporate the
financial statements of the Company and its subsidiaries (the "Group") made up
to 31 March 2024. The results of the subsidiaries are consolidated from the
date of acquisition, being the date on which the Company obtains control, and
continue to be consolidated until the date such control ceases.
These condensed half-yearly consolidated financial statements do not include
all of 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 30 September 2023. They have been prepared in
accordance with the accounting policies adopted in the last annual financial
statements for the year to 30 September 2022. The report of the auditors on
those accounts was unqualified and did not contain a statement under section
498(2) or (3) of the Companies Act 2006, but did include a reference to
matters which the auditors drew attention to by way of emphasis without
qualifying their report.
The accounting policies have been applied consistently throughout the Group
for the purpose of preparation of these consolidated half-yearly financial
statements. New and amended standards, and interpretations
issued and effective for the financial year beginning 1 October 2023 have been
adopted but do not have a material impact on the condensed consolidated
financial statements. The Group has not early adopted any other standard,
interpretation or amendment that has been issued but is not yet effective.
The financial information in this statement does not constitute full statutory
accounts within the meaning of Section 434 of the Companies Act 2006. The
financial information for the six months ended 31 March 2024 and 31 March 2023
is unaudited. The comparative figures for the period ended 30 September 2023
were derived from the Group's audited financial statements for that period as
filed with the Registrar of Companies. They do not constitute the financial
statements for that period.
2. Going concern
The Directors are satisfied that the Group has sufficient resources to
continue its operations and to meet its commitments for the immediate future.
The Group therefore continues to adopt the going concern basis in preparing
its condensed half-yearly financial statements.
3. Cash and cash equivalents
Cash includes petty cash and cash held in bank current accounts. Cash
equivalents include short-term investments that are readily convertible to
known amounts of cash and which are subject to insignificant risk of changes
in value.
4. Earnings per share
Six months ended Six months ended Year ended
31 March 2024 31 March 2023 30 September 2023
Weighted number of shares in issue during the 1,552,903,068 353,649,630 1,150,924,615
period
£ £ £
Loss from continuing operations attributable to owners of the parent
(451,412) (724,566) (1,772,670)
- 0.0003 - 0.0020 - 0.0015
The disclosure of the diluted loss per share is the same as the basic loss per
share as the conversion of share options decreases the basic loss per share
thus being anti-dilutive.
Notes to the Condensed Half-Yearly Financial Statements
For the six months ended 31 March 2024
5. Income tax
No charge to tax arises on the results and no deferred tax provision arises or
deferred tax asset is identified.
6. Shares and options transactions during the period
The share capital of the Company consists of three classes of shares: ordinary
shares of 0.001p each which have equal rights to receive dividends or capital
repayments and each of which represents one vote at shareholder meetings; and
two classes of deferred shares, one of 9.9p each and the other of 0.099p each,
which have limited rights as laid out in the Company's articles: in particular
deferred shares carry no right to dividends or to attend or vote at
shareholder meetings and deferred share capital is only repayable after the
nominal value of the ordinary share capital has been repaid.
Changes in issued share capital and share premium:
Number of Ordinary Deferred Deferred 'B' Deferred Total Share
shares shares 9.9p shares 0.099p shares 0.199p shares shares premium Total
£ £ £ £ £ £ £
At 1 October 2023 1,207,976,015 12,079 7,194,816 3,828,359 257,161 11,292,415 54,195,397 65,487,812
Issue of shares less costs 411,110,745 4,112 - - - 4,112 1,014,867 1,018,979
Balance at 31 March 2024 1,619,086,760 16,191 7,194,816 3,828,359 257,161 11,296,527 55,210,264 66,506,791
All the shares issued are fully paid up and none of the Company's shares are
held by any of its subsidiaries.
7. Consolidated Cash Flow Statement
Six months ended Six months ended Year ended
31 March 2024 31 March 2023 30 September 2023
£ £ £
Operating activities
Loss for the period, before tax (451,412) (724,565) (1,772,670)
Adjustments:
Depreciation expense, property, plant and equipment 41,851 63,005 131,541
Share based payments 24,000 156,380
Loss on disposal of subsidiary
(Gain)/Loss on available for sale financial assets 2,877 219,923
Impairment of intangible assets (1,170) 79,274 34,394
Interest income (2,334) (4,249) (3,112)
Profit and loss on disposal (7,502)
(Gain)/Loss on revaluation of investments 38,265
(Increase) /decrease in accounts receivable (59,115) 24,099 62,660
(Increase) /decrease in inventory - (28,683)
Increase/(Decrease) in accounts payable (7,333) (110,214) (12,968)
(Increase)/decrease in taxation
Net cash flow used in operations (424,750) (698,456) (1,183,852)
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