leadf
logo-loader
viewAnglesey Mining PLC

ANGLESEY MINING PLC - Half-year Report for six months to 30 September 2020

Anglesey Mining plc

Half yearly report for the six months to30 September 2020

Chairman’s Statement and Management Report

The period since our Annual Report in September has been very encouraging for the minerals industry in general and for Anglesey Mining in particular.  We have made good advances on a number of fronts and the prices of all the main metals in which we are interested have advanced significantly.  Two of our projects have moved forward through the commissioning of development studies and the results of both these should be available in the coming weeks.

Share Issue and Financings

In August we reported on a private placing that raised £200,000.  Associated with that placing was the issue of a matching number of warrants and I am pleased to report that these warrants have all now been exercised raising an additional £225,000, for a total of £425,000. The support shown by the new incoming investors has been most welcome and the Company’s share price has moved forward substantially from below 2p a share at the time of the placing.  We believe that this demonstrates increasing support from the market and that investors are beginning to recognise the value and potential of Anglesey’s assets.

Covid-19

Despite the continuing and pervasive presence of Covid-19 throughout the world, the effect is proving quite positive for commodity prices.  We believe that encouraging developments with vaccines will lead to stability in general economic and operating conditions and the inevitable stimulus relief and infrastructure programmes will bolster demand for all metals.

Commodity Prices

Over the period, all the metals in which we have an interest have continued to increase in price, some of them substantially.  This applies to both base metals and precious metals and also to iron ore.

With the continuing pressure on current operating mines in some countries because of Covid, a shortfall in supply is dominating the base metal markets and this is likely to continue for some time to come.  This shortfall is accompanied by increasing demand from major infrastructure and Covid relief programmes, particularly in , which are likely to continue through 2021 and into 2022 and provide ongoing support for base metal and iron ore prices.China

Of particular importance to is the price of copper which will be the mainstay of the project in the long term. Copper has made significant recent gains and now trades at over per pound, the highest level for more than 7 years.  This is significantly higher than the price of per pound that was used in the 2017 Micon study.  Similarly, zinc is now back up to the per pound price used in the 2017 study.   A mine at would also produce meaningful quantities of gold and silver, the prices of which reached multi-year highs in 2020 before easing somewhat after the US presidential election. The price outlook for these metals remains very bullish in the face of expected worldwide deficit spending by many governments.Parys MountainParys Mountain$3.50$2.50$1.25

Iron ore has been showing good strength over the last two years but has been particularly strong in 2020 with 62% Fe iron fines, which would be the main product from Labrador Iron Mines Houston project, now trading at over per tonne CFR China.  This is an increase of over 57% for the current year.  Of more importance to the Grangesberg project in is that the premiums for higher grade >65% Fe products continue to be supported and have grown by over 20% during the last month.$145Sweden

We expect this support for all the commodities that are of interest to Anglesey to continue as the lingering effects of the Covid crisis, coupled with the continuation of the stimulus programme in and similar projects being launched in other countries, all begin to take effect.China

Parys Mountain

At the beginning of October, we awarded a contract to Micon International Limited (Micon) to prepare a Preliminary Economic Assessment Report (PEA) on the copper, zinc, lead, gold and silver project located on the island of Anglesey in North Wales.  This PEA follows on from the optimisation studies carried out by QME Mining Technical Services during the last two years and will utilise the outcomes from the QME studies, including capital and operating cost estimates as well as the up to 10 million tonnes of potentially mineable material identified by QME.  We hope that the PEA will confirm a mining and production plan at a higher daily throughput and over a longer total production life than demonstrated in Micon’s 2017 Scoping Study.  This should lead to improved financial forecasts for the project from those generated in 2017.Parys MountainParys Mountain

Micon has made good progress with this PEA and we expect to be in a position to release details of Micon’s findings before or just after the Christmas break.

Iron Ore

Grangesberg -Sweden

Anglesey continues to manage Grangesberg Iron AB (“GIAB”) which holds the Grangesberg iron ore project in . We have made two further cash investments into GIAB and Anglesey now holds 20% of the company directly, together with a right of first refusal on a further 50% holding. Central Sweden

Site activities have been kept at a low level but the growing support for higher-grade iron ore like the premium product that Grangesberg would produce have encouraged us to now actively seek out alternative development and corporate strategies to move the project and GIAB forward.

We believe that the superior geographic location of the Grangesberg deposit and its projected premium product specification could enable such alternative approaches to be beneficial for the group in the coming periods.

Labrador -Canada

The group continues to hold a 12% interest in Labrador Iron Mines Holdings Limited (LIM) which owns extensive iron ore resources in the area of Labrador and in .ScheffervilleQuebecCanada

LIM holds direct shipping mineral resources of approximately 55 million tonnes at an average grade of 56.8% in the project. In addition LIM holds the Elizabeth Taconite Project which has a current inferred mineral resource estimated at 620 million tonnes at an average grade of 31.8% Fe.Houston

LIM has recently appointed RPA of to carry out a PEA on the direct shipping iron ore project.  , which lies approximately 30 kilometres south of LIM’s previous operation, will be very similar in design and operational characteristics to James and is therefore well understood.  It is expected that the PEA will look at an operation producing approximately 2 million tonnes per year.  The PEA is due for completion early in 2021 and could provide the impetus to move forward to financing and production.TorontoHoustonHoustonJames MineHouston

LIM’s former and the Silver Yards processing facility have been in a progressive reclamation since the termination of mining at the in 2014. This work is now virtually complete and has resulted in the release of several reclamation bonds previously provided to regulatory authorities. James MineJames Mine

LIM’s Elizabeth Project represents an opportunity to develop a major new taconite operation in the region of the Labrador Trough which would produce a high-grade saleable iron ore product. This would attract premium prices in the current iron ore market.Schefferville

Operations

As always, we have kept our corporate and operating costs at the lowest level consistent with maintaining our assets in good order. We will continue this policy going forward but we expect there will be some increase in costs as project development activities continue. The recent private placing and warrant exercise financings have put Anglesey in a position to support its base operations for the immediate future.

Financial results

The group had no revenue for the period. The loss for the six months to was £152,882 (2019 £156,600) and the expenditures on the mineral property in the period were £27,827 compared to £26,527 in the comparative period. Net current assets at were £94,895 compared to £13,572 at . Since the period end a further £225,000 gross has been raised from the exercise of warrants.  30 September 202030 September 202031 March 2020

Outlook

We have been much encouraged by the positive commodity price outlook and increased investor interest over the last few months as we have been moving all our projects forward.  We are confident that this recent progress will continue.  We believe that the fundamentals that have driven commodity prices upwards will continue for the foreseeable future and will provide solid support for our projects.    We look forward to completion by Micon of the PEA on , which should see that project move to the next development stage during 2021.  We are also confident that both LIM’s and GIAB’s Grangesberg iron ore projects will be advanced in the coming year. Parys MountainHouston

We are also actively reviewing two other base metal projects in established geographical locations and we hope that we should be able to come to suitable working arrangements with one of these in the coming months.

All in all, we are confident of the way forward and positive on the outlook for Anglesey Mining for 2021.

I would like to thank shareholders for their continued and renewed support.

John F Kearney

Chairman

10th December 2020

Unaudited condensed consolidated income statement

Unaudited condensed consolidated statement of comprehensive income

All attributable to equity holders of the company

Unaudited condensed consolidated statement of financial position

All attributable to equity holders of the company

Unaudited condensed consolidated statement of cash flows

All attributable to equity holders of the company

Unaudited condensed consolidated statement of changes in group equity

All attributable to equity holders of the company

Notes to the accounts

1.  Basis of preparation

This half-yearly financial report comprises the unaudited condensed consolidated financial statements of the group for the six months ended . It has been prepared in accordance with the Disclosure and Transparency Rules of the Financial Conduct Authority, the requirements of IAS 34 - Interim financial reporting (as adopted by the European Union) and using the going concern basis. The directors are not aware of any events or circumstances which would make this inappropriate. It was approved by the board of directors on . It does not constitute financial statements within the meaning of section 434 of the Companies Act 2006 and does not include all of the information and disclosures required for annual financial statements. It should be read in conjunction with the annual report and financial statements for the year ended which is available on request from the company or may be viewed at .30 September 202010 December 202031 March 2020www.angleseymining.co.uk

The financial information contained in this report in respect of the year ended has been extracted from the report and financial statements for that year which have been filed with the Registrar of Companies. The report of the auditors on those accounts did not contain a statement under section 498(2) or (3) of the Companies Act 2006 and was not qualified. The half-yearly results for the current and comparative periods have not been audited or reviewed.31 March 2020

2.  Significant accounting policies 

The accounting policies applied in these unaudited condensed consolidated financial statements are consistent with those set out in the annual report and financial statements for the year ended .31 March 2020

New accounting standards

Standards, amendments and interpretations adopted in the current financial period:

The adoption of the following standards, amendments and interpretations in the current financial period has not had a material impact on the financial statements of the group or the company.

IFRS 9 Financial Instruments (Amendment)

IFRS 16 Leases  

IFRIC 23 Uncertainty over Income Tax Treatments

IAS 19 Employee Benefits (Amendment) Plan Amendment

IAS 28 Investments in Associates and Joint Ventures (Amendment)

Standards, amendments and interpretations in issue but not yet effective:

The adoption of the above standards and interpretations is not expected to lead to any changes to the group’s accounting policies or have any other material impact on the financial position or performance of the group.

There have been no other new or revised International Financial Reporting Standards, International Accounting Standards or Interpretations that are in effect since that last annual report that have a material impact on the financial statements.

3.  Risks and uncertainties

The principal risks and uncertainties set out in the group's annual report and financial statements for the year ended remain the same for this half-yearly financial report and can be summarised as: development risks in respect of mineral properties, especially in respect of permitting and metal prices; liquidity risks during development; and foreign exchange risks. More information is to be found in the 2020 annual report – see note 1 above.31 March 2020

4.  Statement of directors' responsibilities

The directors confirm to the best of their knowledge that:

(a) the unaudited condensed consolidated financial statements have been prepared in accordance with the requirements of IAS 34 Interim financial reporting (as adopted by the European Union); and

(b) the interim management report includes a fair review of the information required by the FCA's Disclosure and Transparency Rules (4.2.7 R and 4.2.8 R).

This report and financial statements were approved by the board on and authorised for issue on behalf of the board by , chief executive officer and , finance director.10 December 2020Bill HooleyDanesh Varma

5.  Activities 

The group is engaged in mineral property development and currently has no turnover. There are no minority interests or exceptional items.

6.  Earnings per share

The loss per share is computed by dividing the loss attributable to ordinary shareholders of £0.153 million (loss to £0.157m), by 189,571,360 (2019 – 184,569,825) - the weighted average number of ordinary shares in issue during the period. Where there are losses the effect of outstanding share options is not dilutive.30 September 2019

7.  Business and geographical segments

There are no revenues. The cost of all activities charged in the income statement relates to exploration and development of mining properties. The group's income statement and assets and liabilities are analysed as follows by geographical segments, which is the basis on which information is reported to the board.

Income statement analysis

   

Assets and liabilities

8.  Deferred tax

There is an unrecognised deferred tax asset of £1.3 million ( - £1.3m) which, in view of the group's results, is not considered to be recoverable in the short term. There are also capital allowances, including mineral extraction allowances, exceeding £12.8 million (unchanged from ) unclaimed and available. No deferred tax asset is recognised in the condensed financial statements.31 March 202031 March 2020

9.  Mineral property exploration and evaluation costs

Mineral property exploration and evaluation costs incurred by the group are carried in the unaudited condensed consolidated financial statements at cost, less an impairment provision if appropriate. The recovery of these costs is dependent upon the successful development and operation of the project which is itself conditional on finance being available to fund such development. During the period expenditure of £27,827 was incurred (six months to - £26,527). There have been no indicators of impairment during the period.Parys Mountain30 September 2019

10.  Investments

The group’s investment is classified as ‘unquoted’ and is held at a nominal value of £1.Labrador:  

 At the date of these statements the group has a 20.0% (10% at ) holding in Grangesberg Iron AB (an unquoted Swedish company) and a right of first refusal over shares amounting to a further 51% of that company. This investment has been initially recognised and subsequently measured at cost, on the basis that the shares are not quoted and a reliable fair value is not able to be estimated. During the period the group subscribed for new shares in GIAB and obtained further shares in exchange for services provided by it to Grangesberg.Grangesberg:31 March 2020

11.  Share capital

The deferred shares are non-voting, have no entitlement to dividends and have negligible rights to return of capital on a winding up.

On a placing of 12.500,000 new ordinary shares was made to an institution, representing approximately 6.3% of the company’s then current issued share capital, at per share to raise a total of £200,000 gross and £184,000 net. Together with that placing warrants that could raise an additional £225,000 gross during the following 12 months were granted to the same institution. All of these warrants had been exercised by the date of these statements.24 August 20201.6 pence

12.  Financial instruments

13.  Events after the reporting period 

None.

14.  Related party transactions 

None.

Anglesey Mining plc

Directors:

John Kearney                                Chairman

Bill Hooley                                      Chief executive

                              Finance directorDanesh Varma

                               Non executiveHoward Miller

site: , Amlwch, Anglesey, LL68 9RE   Phone 01407 831275Parys MountainParys Mountain

office: Painter's , , , EC4V 2AN   Phone 020 7062 3782London8 Little Trinity LaneLondonHall Chambers

Registered office: Tower , St. Katharine's Way, , E1W 1DDBridge HouseLondon

Web site:                                          E-mail:www.angleseymining.co.ukmail@angleseymining.co.uk

Shares listed on the London Stock Exchange - LSE:AYM               Company registration number 1849957

Share registrars: Link Asset Services www.linkassetservices.com

Notes    Unaudited six months    Unaudited six months
                               ended 30 September 2020 ended 30 September 2019

All operations are                                   £                       £
continuing

 Revenue                                             -                       -

 Expenses                                     (68,439)                (71,493)

 Equity-settled employee                             -                       -
 benefits

 Investment income                                  50                      60

 Finance costs                                (84,460)                (85,190)

 Foreign exchange                                 (33)                      23
 movement

Loss before tax                              (152,882)               (156,600)

 Taxation                  8                         -                       -

Loss for the period        7                 (152,882)               (156,600)

 Loss per share

 Basic - pence per share                        (0.1)p                  (0.1)p

 Diluted - pence per                            (0.1)p                  (0.1)p
 share
Loss for the period              (152,882) (156,600)

 Other comprehensive income

 Items that may subsequently be
 reclassified to profit or loss:

 Exchange difference on              8,747  (22,397)
 translation of foreign holding

Total comprehensive loss for     (144,135) (178,997)
the period
Notes 30 September 2020 31 March 2020

                                                        £             £

Assets

 Non-current assets

 Mineral property exploration and   9          15,243,550    15,215,723
 evaluation

 Property, plant and equipment                    204,687       204,687

 Investments                       10             105,527       100,099

 Deposit                                          123,798       123,748

                                               15,677,562    15,644,257

 Current assets

 Other receivables                                 21,957        16,505

 Cash and cash equivalents                        206,309        95,311

                                                  228,266       111,816

Total assets                                   15,905,828    15,756,073

Liabilities

 Current liabilities

 Trade and other payables                       (133,371)      (98,244)

                                                (133,371)      (98,244)

 Net current assets                                94,895        13,572

 Non-current liabilities

 Loans                                        (4,056,656)   (3,981,893)

 Long term provision                             (50,000)      (50,000)

                                              (4,106,656)   (4,031,893)

Total liabilities                             (4,240,027)   (4,130,137)

Net assets                                     11,665,801    11,625,936

Equity

 Share capital                     11           7,505,591     7,380,591

 Share premium                                 10,317,309    10,258,309

 Currency translation reserve                    (71,719)      (80,466)

 Retained losses                              (6,085,380)   (5,932,498)

Total shareholders' funds                      11,665,801    11,625,936
Notes    Unaudited six months    Unaudited six months
                                ended 30 September 2020 ended 30 September 2019

                                                      £                       £

Operating activities

 Loss for the period                          (152,882)               (156,600)

 Adjustments for:

 Investment income                                 (50)                    (60)

 Finance costs                                   84,460                  85,190

 Foreign exchange                                    33                    (23)
 movement

                                               (68,439)                (71,493)

 Movements in working
 capital

 (Increase) in                                  (5,153)                 (4,733)
 receivables

 Increase/(decrease) in                          27,862                 (7,751)
 payables

Net cash used in                               (45,730)                (83,977)
operating activities

Investing activities

 Mineral property                              (21,811)                (30,487)
 exploration and
 evaluation

 Investment                                     (5,428)                       -

Net cash used in investing                     (27,239)                (30,487)
activities

Financing activities

 Issue of share capital                         184,000                 170,000

 Loan received                                        -                 100,000

Net cash generated from                         184,000                 100,000
financing activities

Net increase in cash and cash                   111,031                 155,560
equivalents

Cash and cash equivalents                        95,311                   6,012
at start of period

Foreign exchange movement                          (33)                      23

Cash and cash equivalents                       206,309                 161,595
at end of period
Share      Share    Currency Retained losses      Total
                     capital    premium translation               £          £
                           £          £     reserve
                                                  £

Equity at 1 April  7,380,591 10,258,309    (80,466)     (5,932,498) 11,625,936
2020 - audited

Total
comprehensive
income for the
period:

Exchange                   -          -       8,747               -      8,747
difference on
translation of
foreign holding

Loss for the               -          -           -       (152,882)  (152,882)
period

Total                      -          -       8,747       (152,882)  (144,135)
comprehensive
income for the
period

Shares issued        125,000     75,000           -               -    200,000

Share issue                -   (16,000)           -               -   (16,000)
expenses

Equity at          7,505,591 10,317,309    (71,719)     (6,085,380) 11,665,801
30 September 2020
- unaudited

Comparative period

Equity at 1 April  7,286,914 10,171,986    (57,116)     (5,627,988) 11,773,796
2019 - audited

Total
comprehensive
income for the
period:

Exchange                   -          -    (22,397)               -   (22,397)
difference on
translation of
foreign holding

Loss for the               -          -           -       (156,600)  (156,600)
period

Total                      -          -    (22,397)       (156,600)  (178,997)
comprehensive
income for the
period

Shares issued         93,677    106,323           -               -    200,000

Share issue                -   (30,000)           -               -   (30,000)
expenses

Equity at          7,380,591 10,248,309    (79,513)     (5,784,588) 11,764,799
30 September 2019
- unaudited
Effective date

Amendments to IAS 1 and IAS 8: Definition of     
Material

Amendment to IFRS 3 Business Combinations:       
Definition of a Business

Conceptual Framework (Revised) and amendments to 
related references in IFRS Standards

IFRS 17 Insurance Contracts                      Expected date not available1 January 20201 January 20201 January 2020
Unaudited six months ended 30 September 2020

                           UK Sweden - investment Canada - investment     Total

                            £                   £                   £         £

Expenses             (68,439)                   -                   -  (68,439)

Investment income          50                   -                   -        50

Finance costs        (77,117)             (7,343)                   -  (84,460)

Exchange rate               -                (33)                   -      (33)
movements

Loss for the period (145,506)             (7,376)                   - (152,882)
Unaudited six months ended 30 September 2019

                           UK Sweden - investment Canada - investment     Total

                            £                   £                   £         £

Expenses             (71,493)                   -                   -  (71,493)

Investment income          60                   -                   -        60

Finance costs        (77,048)             (8,142)                   -  (85,190)

Exchange rate               -                  23                   -        23
movements

Loss for the period (148,481)             (8,119)                   - (156,600)
`                                       30 September 2020

                            UK Sweden investment Canada investment       Total

                             £                 £                 £           £

Non current assets  15,572,035           105,526                 1  15,677,562

Current assets         227,117             1,149                 -     228,266

Liabilities        (3,921,276)         (318,751)                 - (4,240,027)

Net assets/         11,877,876         (212,076)                 1  11,665,801
(liabilities)

                                      Audited 31 March 2020

                            UK Sweden investment Canada investment       Total

                             £                 £                 £           £

Non current assets  15,544,158           100,098                 1  15,644,257

Current assets         110,716             1,100                 -     111,816

Liabilities        (3,809,032)         (321,105)                 - (4,130,137)

Net assets/         11,845,842         (219,907)                 1  11,625,936
(liabilities)
Labrador Grangesberg   Total

                                £           £       £

At 1 April 2019                 1      97,794  97,795

Change during the period        -       2,304   2,304

At 31 March 2020                1     100,098 100,099

Change during the period        -       5,428   5,428

At 30 September 2020            1     105,526 105,527
Ordinary shares of 1p Deferred shares of 4p     Total

Issued and             Nominal      Number   Nominal      Number   Nominal
fully paid             value £               value £               value £

At 1 April 2020      1,869,758 186,975,732 5,510,833 137,770,835 7,380,591

Issued in the period   125,000  12,500,000                         125,000

At 30 September 2020 1,994,758 199,475,732 5,510,833 137,770,835 7,505,591
Group          Financial assets classified at   Financial assets measured at
                  fair value through other             amortised cost
                    comprehensive income

               30 September 2020 31 March 2020 30 September 2020 31 March 2020

                               £             £                 £             £

Investments              105,527       102,403                 -             -

Deposit                        -             -           123,798       123,748

Other                          -             -            21,957        16,505
receivables

Cash and cash                  -             -           206,309        95,311
equivalents

                               -             -

                         105,527       102,403           352,064       235,564

               Financial liabilities measured
                      at amortised cost

               30 September 2020 31 March 2020

                               £             £

Trade payables          (12,299)      (13,537)

Other payables         (121,072)      (84,707)

Loans                (4,056,656)   (3,981,893)

                     (4,190,027)   (4,080,137)

Quick facts: Anglesey Mining PLC

Price: -

Market: LSE
Market Cap: -
Follow

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Anglesey Mining: 'British story, British jobs, British asset and British...

Mining Capital's Alastair Ford talks to Proactive about Anglesey Mining PLC's (LON:AYM) who unveiled results this week from their preliminary economic assessment (PEA) of the Parys Mountain copper-zinc-lead-gold-silver project. Ford discusses the potential for the mine in terms of production...

on 15/1/21

44 min read