Interim Results

Source: RNS
RNS Number : 4882F
Arc Minerals Limited
25 September 2024
 

25 September 2024, 06:00 UTC

Arc Minerals Ltd

('Arc Minerals' or the 'Company')

Interim Results

Arc Minerals announces its unaudited financial results for the six months ended 30 June 2024 (the "Interim Results") which has been made available on the Company's website at http://www.arcminerals.com/investors/document-library/default.aspx .

 

Market Abuse Regulation (MAR) Disclosure

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with the Company's obligations under Article 17 of MAR.

Forward-looking Statements

This news release contains forward-looking statements that are based on the Company's current expectations and estimates. Forward-looking statements are frequently characterised by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", "suggest", "indicate" and other similar words or statements that certain events or conditions "may" or "will" occur. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause actual events or results to differ materially from estimated or anticipated events or results implied or expressed in such forward-looking statements. Such factors include, among others: the actual results of current exploration activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; possible variations in ore grade or recovery rates; accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing; and fluctuations in metal prices. There may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.

**ENDS**

Contacts

Arc Minerals Ltd                                                             

Nick von Schirnding (Executive Chairman)

 

c/o Benchmark Communications



Zeus Capital Limited (Nominated Adviser & Joint Broker)

Katy Mitchell/Harry Ansell

Tel: +44 (0) 203 829 5000



Shard Capital Partners LLP (Joint Broker)

Damon Heath

Tel: +44 (0) 20 7186 9952



Benchmark Communications (Investor Relations)

Richard Kauffer

Tel: +44 (0) 7841 67 3210





 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

for the period ended 30 June 2024

 

 

 


 

Six Months to

30 June
2024

 

Six Months to
30 June
2023

 

 

 


 

(Unaudited)

 

(Unaudited)

 

 

 

Notes

 

£ 000's

 

£ 000's

 

















Administrative expenses




(514)


(2,201)


Operating loss

 


 

(514)

 

(2,201)

 

 

 


 

 

 

 

 

Share of loss from associate




(24)


-










Non-operating Loss




(24)


-










Loss from continuing operations

 


 

(538)

 

(2,201)

 









Income tax expense




-


-


Loss for the period

 

3

 

(538)

 

(2,201)

 









Other comprehensive income / (loss)

 


 

 

 

 

 

Items that may be reclassified subsequently to profit or loss:

 


 

 

 

 

 

Unrealised losses




-


(49)


Effect of currency translation




4


53


Other comprehensive income for the period, net of tax

 


 

4

 

4

 









Total comprehensive loss for the period

 


 

(534)

 

(2,197)

 









Income / (Loss) attributable to:

 


 

 

 

 

 

Equity holders of the parent




(631)


(2,196)


Non-controlling interest




93


(5)






(538)


(2,201)


Total comprehensive income / (loss) attributable to:

 


 

 

 

 

 

Equity holders of the parent




(628)


(2,206)


Non-controlling interest




94


(9)






(534)


(2,197)










Loss per share attributable to the owners of the parent during the period

(expressed in pence per share)

 


 

 

 

 

 

- Basic


3


(0.04)


(0.18)










The notes are an integral part of these consolidated financial statements.


 

 

 

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

as at 30 June 2024

 

 

 


 

As at
30 June
2024

 

As at
31 December
2023

 

 

 


 

(Unaudited)

 

(Audited)

 

 

 

Notes

 

£ 000's

 

£ 000's

 









ASSETS

 


 

 

 

 

 

Non-current assets








Intangible assets


4


1,836


1,699


Investment in Associate




2,434


2,458


Long-term receivable


5


6,811


6,531


Total non-current assets

 


 

11,081

 

10,688

 









Current assets








Trade and other receivables


6


1,924


1,859


Short term investments


7


-


68


Cash and cash equivalents




2,403


281


Total current assets

 


 

4,327

 

2,208

 

 

 


 

 

 

 

 

TOTAL ASSETS

 


     

15,408

 

12,896

 

 

 


 

 

 

 

 

LIABILITIES

 


 

 

 

 

 

Current liabilities

 


 

 

 

 

 

Trade and other payables


8


(1,705)


(2,244)


Total current liabilities

 


 

(1,705)

 

(2,244)

 









Non-current liabilities

 


 

 

 

 

 

Long term payables


9


(104)


(105)


Total non-current liabilities

 


 

(104)

 

(105)

 









TOTAL LIABILITIES

 


 

(1,809)

 

(2,349)

 

 

 


 

 

 

 

 

NET ASSETS

 


 

13,599

 

10,547

 









EQUITY

 


 

 

 

 

 

Share capital


10


-


-


Share premium




68,063


64,464


Share based payments reserve




84


126


Warrant reserve




84


84


Foreign exchange reserve




(114)


(61)


Retained earnings




(54,612)


(54,063)


Equity attributable to equity holders of the parent

 

 

 

13,505

 

10,550

 

Non-controlling interest




94


(3)


TOTAL EQUITY

 


       

13,599

 

10,547

 









The notes are an integral part of these consolidated financial statements.

CONSOLIDATED STATEMENT OF CASH FLOWS

for the period ended 30 June 2024

 

 

 


 

As at
30 June
2024

 

As at
30 June
2023

 

 


 

(Unaudited)

 

(Unaudited)

 

 

Notes

 

£ 000's

 

£ 000's








Cash flows from operating activities

 


 

 

 

 

Loss for the period


3


(538)


(2,201)

Depreciation




-


5

Currency losses / (gains)




(54)


39

Fair value losses / (gains)


7


(28)


1,469

Share of loss of associate




24


-

Non-cash revaluation loss




(251)


-

Operating loss before changes in working capital

 


 

(847)

 

(688)








Increase in trade and other receivables




(40)


(13)

Increase / (Decrease) in trade and other payables




(548)


194

Net cash used in operating activities

 


 

(1,435)

 

(507)

 

 


 

 

 

 

Cash flows used in investing activities

 


 

 

 

 

Additions to intangible assets


4


(137)


(88)

Proceeds from disposal of short-term investments


7


96


-

Net cash used in investing activities

 


 

(41)

 

(88)








Cash flows from financing activities

 


 

 

 

 

Proceeds from issue of ordinary shares net of share issue cost


10


4,005


28

Repurchase of shares


10


(406)


-

Long term payables


9


(1)


11

Net cash generated from financing activities

 


 

3,598

 

39

 

 


 

 

 

 

Net increase/(decrease) in cash and cash equivalents

 


 

2,122

 

(556)

Cash and cash equivalents at beginning of period




281


616

Cash and cash equivalents at end of period

 


 

2,403

 

60








The notes are an integral part of these consolidated financial statements.

 

 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

for the period ended 30 June 2024

 

Share
capital

 

Share premium

 

Foreign exchange reserve

 

Share based payment reserve

 

Warrant

Reserve

 

Retained earnings

 

Total

Non-controlling
interest

 

Total
equity

 

£ 000's

 

£ 000's

 

£ 000's

 

£ 000's

 

£ 000's

 

£ 000's

 

£ 000's

£ 000's

 

£ 000's

As at 1 January 2023

-

 

64,272

 

1,045

 

283

 

84

 

(59,196)

 

6,488

(643)

 

5,845

Loss for the period

-


-


-


-


-


(2,196)


(2,196)

(5)


(2,201)

Items that may be reclassified subsequently to profit or loss:

















Currency translation differences

-


-


(10)


-


-


-


(10)

14


4

Total comprehensive loss for the period

-

 

-

 

(10)

 

-

 

-

 

(2,196)

 

(2,206)

9

 

(2,197)

Share capital issued net of share issue costs

-


28


-


-


-


-


28

-


28

Effect of foreign exchange on the opening balance

-


-


(169)


-


-


30


(139)

-


(139)

Total transactions with owners, recognised directly in equity

-

 

28

 

(169)

 

-

 

-

 

30

 

(111)

-

 

(111)

As at 30 June 2023

 

64,300

 

866

 

283

 

84

 

(61 362)

 

4,171

(634)

 

3,537


















As at 1 January 2024

 

64,464

 

(78)

 

126

 

84

 

(54,046)

 

10,550

(3)

 

10,547

Loss for the period

-


-


-


-


-


(631)


(631)

93


(538)

Items that may be reclassified subsequently to profit or loss:

















Currency translation differences

-


-


3


-


-


-


3

1


4

Total comprehensive loss for the period

-

 

-

 

3

 

-

 

-

 

(631)

 

(628)

94

 

(534)

Share capital issued net of share issue costs

-


4,005


-


-


-


-


4,005

-


4,005

Cancellation of repurchased shares (note 10)

-


(406)


-


-


-


-


(406)

-


(406)

Warrants and options expired

-


-


-


(42)


-


42


-

-


-

Effect of foreign exchange on the opening balance

-


-


(39)


-


-


23


(16)

3


(13)

Total transactions with owners, recognised directly in equity

-

 

3,599

 

(39)

 

(42)

 

-

 

65

 

3,583

3

 

3,586

As at 30 June 2024

 

68,063

 

(114)

 

84

 

84

 

(54,612)

 

13,505

94

 

13,599

 

The notes are an integral part of these consolidated financial statements.

NOTES TO THE INTERIM FINANCIAL STATEMENTS

For the period ended 30 June 2024

1. Basis of preparation

The condensed consolidated interim financial statements have been prepared under the historical cost convention and on a going concern basis and in accordance with International Financial Reporting Standards and IFRIC interpretations adopted for use in the European Union ("IFRS") and those parts of the BVI Business Companies Act applicable to companies reporting under IFRS.

The condensed consolidated interim financial statements contained in this document do not constitute statutory accounts. In the opinion of the directors, the condensed consolidated interim financial statements for this period fairly presents the financial position, result of operations and cash flows for this period.

The Board of Directors approved this Interim Financial Report on 24 September 2024.

Statement of compliance

The condensed consolidated interim financial statements have been prepared in accordance with the requirements of the AIM Rules for Companies. As permitted, the Company has chosen not to adopt IAS 34 "Interim Financial Statements" in preparing these interim condensed consolidated interim financial statements. The condensed interim financial statements should be read in conjunction with the annual financial statements for the year ended 31 December 2023, which have been prepared in accordance with IFRS as adopted by the European Union.

Accounting policies

The condensed consolidated interim financial statements for the period ended 30 June 2024 have not been audited or reviewed in accordance with the International Standard on Review Engagements 2410 issued by the Auditing Practices Board. The figures were prepared using applicable accounting policies and practices consistent with those adopted in the statutory annual financial statements for the year ended 31 December 2023.

Going concern

The Directors have reviewed a forecast prepared by the executive and have a reasonable expectation that the Group has sufficient funds to continue in operation and satisfy liabilities for the foreseeable future. The Directors therefore consider it appropriate for the Company to continue to adopt the going concern basis in preparing the Annual Report and Financial Statements.

Fair value measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either in the principal market for the asset or liability, or in the absence of a principal market, in the most advantageous market for the asset or liability.

 

The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest. A fair value measurement of a non-financial asset takes into account a market participant's ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

 

The Group uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs. All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

 

• Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities.

• Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable.

• Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.

 

2. Financial Risk Management

Risks and uncertainties

The Board continually assesses and monitors the key risks of the business. The key risks that could affect the Group's medium-term performance and the factors that mitigate those risks have not substantially changed from those set out in the Group's December 2023 Annual Report and Financial Statements, a copy of which is available from the Group's website: www.arcminerals.com. The key financial risks are market risk, currency risk, and liquidity.

 

3. Loss per share

 

 

 

 

Six Months to
30 June 2024

 

Six Months to
30 June 2023

 

 

 

 

(Unaudited)

 

(Unaudited)

 

 

Notes

 

£ 000's

 

£ 000's

Loss for the period


 


(538)


(2,201)

Weighted average number of ordinary shares used in calculating basic loss per share (000's)


 


1,348,712


1,225,745

Basic loss per share (expressed in pence)




(0.04)


(0.18)

 

As the inclusion of outstanding warrants and options would result in a decrease in the earnings per share, they are considered to be anti-dilutive and, as such, a diluted loss per share is not included.

 

4. Intangible Assets

 

 

 

 

 

 

Alvis-Crest

Foreland

Total

 

 

 

 

 

 

Prospecting & Exploration rights

Deferred Exploration Costs

 

 

 

 

 

 

 

£ 000's

£ 000's

£ 000's










As at 1 January 2024

 

 

 



1,699

-

1,699

Additions






127

10

137

Foreign exchange






-

-

-

As at 30 June 2024

 

 

 

 

 

1,826

10

1,836










As at 31 December 2023






1,699

-

1,699








      


 

5. Long-term receivables

 

Group

Group

 

30 June

2024

31 Dec

2023

 

£ 000's

£ 000's

Receivable - Anglo JV (USD 8.61M)

6,811

6,531

Total

6,811

6,531

 

6. Trade and other receivables

 

 

Group

Group

 

30 June

2024

31 Dec

2022

 

£ 000's

£ 000's

Receivable - Anglo JV (USD 974k)

770

744

Receivable - Casa Sale (USD 1.25M)

988

982

Other Receivables

166

121

Prepayments

-

12

Total

1,924

1,859

 

 

7. Short-term Investments Held at Fair Value Through Profit and Loss

The Group's investments held at fair value through profit and loss consist of investments publicly traded on the London Stock Exchange and the Over-The-Counter (OTC) market. These investments are valued at the mid-price as at period end.

 

 

Level 1(i)

Level 2(i)

Level 3(i)

Total

 

 

£ 000's

£ 000's

£ 000's

£ 000's

 






At 1 January 2024


68

-

-

68

Additions


-

-

-

-

Fair value and gain on disposal


28

-

-

28

Disposals


(96)

-

-

68

Foreign exchange


-

-

-

-

At 30 June 2024

 

-

-

-

-

 

 

 

 

 

 

 

 

Level 1(i)

Level 2(i)

Level 3(i)

Total

 

 

£ 000's

£ 000's

£ 000's

£ 000's

Gains on short-term investments held at fair value through profit and loss

Fair value gain and disposal on investments


28

-

-

28

At 30 June 2024

 

28

-

-

28

 

(i) See note 1 (accounting policy).  

 

 

 

Level 1(i)

Level 2(i)

Level 3(i)

Total

 

 

£ 000's

£ 000's

£ 000's

£ 000's

 






At 1 January 2023


1,738

-

-

1,738

Additions


-

-

-

-

Fair value loss


(1,509)

-

-

(1,509)

Impairment of TMNA shares


(164)

-

-

(164)

Foreign exchange


3

-

-

3

At 31 December 2023

 

68

-

-

68

 

 

 

 

 

 

 

 

 

Level 1

Level 2

Level 3

Total

 

 

£ 000's

£ 000's

£ 000's

£ 000's

Losses on short-term investments held at fair value through profit and loss

Fair value loss on investments


(1,509)

-

-

(1,509)

Realised loss on impairment of investments


(164)

-

-

(164)

At 31 December 2023

 

(1,673)

-

-

(1,673)

 

(i) See note 1 (accounting policy).  

 

8. Trade and Other Payables

 

 

 

Group

 

Group

 

 

 

30 June 2024

 

31 December

2023

Trade and Other Payables

 

 

£ 000's

 

£ 000's

Surrendered share options payable



1,181


1,181

Minority shareholder loans



-


47

Trade and other payables



524


1,016




1,705


2,244







 

Surrendered Share Options Payable

The surrendered share options payable is in relation to the surrendered share options as announced on 16 March 2021.

 

Minority shareholder loans

The minority shareholder loans represent the loan from the 33% minority shareholder to Unico Minerals Limited. The Company has also provided a loan to this company on similar terms which had a balance on the reporting date of c.£1.45 million.

 

9. Long Term Payables

 

 

 

Group

 

Group

 

 

 

30 June 2024

 

31 December 2023

Long term payables

 

 

£ 000's

 

£ 000's

Minority shareholder loan



104


105




104


105







 

The minority shareholder loan consists of a loan from the 25% minority shareholder of Alvis-Crest (Pty) Ltd. The Company has also provided a loan to Alvis Crest on similar terms which had a balance on the reporting date of c.£964k.

 

10. Share Capital

The authorised share capital of the Company and the called up and fully paid amounts at 30 June 2024 were as follows:

A) Authorised

 

£ 000's

 

£ 000's

Unlimited ordinary shares of no par value


-


-






B) Called up, allotted, issued and fully paid

Number
of shares

Nominal
value

Price

per

share

(pence)

Gross

Consideration
value

GBP'000

As at 1 January 2024

1,232,318,465

-

-

-

Additions:





23 Feb 2024 - issued to creditors in lieu of payment

746,664

-

2.33

17

25 Mar 2024 - placing and subscription

229,777,770

-

1.80

4,136

25 Mar 2024 - advisor shares in relation to placing

5,711,110

-

1.80

103

8 Apr 2024 - cancellation of repurchased shares as first announced on 26 Mar 2024

(22,539,746)

-

1.80

(406)

As at 30 June 2024

1,446,014,263

-

 

-

 

 

11. Events after the reporting date

There were no post balance sheet events in addition to those disclosed in the 31 December 2023 Annual Report.

 

12. Other Matters

The condensed consolidated interim financial statements set out above do not constitute the Group's statutory accounts for the period ended 30 June 2024 or for earlier periods but are derived from those accounts where applicable.

A copy of this interim statement is available on the Company's website: www.arcminerals.com.

 

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END
 
 
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