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Beowulf Mining PLC - Unaudited Financial Results

RNS Number : 2829O
Beowulf Mining PLC
29 May 2020
 

 

 

 

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations ("MAR") (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

29 May 2020

Beowulf Mining plc

("Beowulf" or the "Company")

Unaudited Financial Results for the Period Ended 31 March 2020

 

Beowulf (AIM: BEM; Spotlight: BEO), the mineral exploration and development company, announces its unaudited financial results for the three months ended 31 March 2020.

 

Overview of Activities in the Quarter

·      The Company announced, on 3 February 2020, a management update on its application for an Exploitation Concession (the "Concession") for the Kallak Iron Ore Project ("Kallak") and the Company's other business areas, Vardar Minerals ("Vardar") and Fennoscandian Resources ("Fennoscandian").

·      On 4 February 2020, the Company announced that in response to the CEO's letter sent to Minister Ibrahim Baylan in December 2019, the Government stated it was not able to comment on when a decision, in respect of the Concession for Kallak, is expected to be taken, however, the Government had taken careful note of the information provided by the Company.

·      The Company stated, on 13 February 2020, that contrary to media reports, no legal action had been taken against the Government, but that all options with regard to taking legal action remain under active consideration.

·      On 17 February 2020, the Company announced that Vardar had identified a copper-zinc exploration target at Mitrovica and that the Company had invested a further £50,000 in Vardar, increasing the Company's ownership from 41.5 per cent to 42.2 per cent.

·      On 25 March 2020, the Company invested a further £30,000 in Vardar, alongside founders and existing shareholders in Vardar, to fund a soil sampling programme across the Madjan Peak gold target, part of the Mitrovica licence. The resulting investment maintained the Company's ownership interest in Vardar at 42.2 per cent.

Post Period

·      On 18 May 2020, the Company provided an update on Fennoscandian's activities in Finland.  Fennoscandian continues to develop a 'resource footprint' of natural flake graphite to provide 'security of supply' to Finland's emerging battery sector and to benefit from Business Finland funding, as the Company seeks to move downstream and develop its knowledge in processing and manufacturing battery grade and value-added graphite products.

·      On 26 May 2020, the Company announced that a Parliamentary Question regarding Kallak had been put to Mr Ibrahim Baylan, Minister for Business, Industry and Innovation, which the Minister is scheduled to answer on 3 June 2020. The question was posed by Lars Hjälmered, a Moderate Party Member in the Swedish Parliament.

·      On 27 May 2020, the Company announced that it had a awarded a drilling contract for Kallak to Kati Oy.  The work programme, scheduled for Autumn 2020, will determine if a 3D seismic model can be constructed, using the established seismic characteristics of the Kallak deposit, and whether the 3D model can be used to identify additional iron ore mineralisation for the Exploration Target of 90-100 million tonnes ("Mt") at 22-30 per cent iron ("Fe") at Kallak.

 

 

Kurt Budge, Chief Executive Officer of Beowulf, commented:

 

"Over the quarter, we continued to see progress being made by Vardar in Kosovo, with the addition of a copper-zinc exploration target at Mitrovica and a soils sampling programme being carried out over the prospective Madjan Peak gold target, the results of which should be announced shortly.

 

"Post period, we updated the market on developments in Finland, with positive early signs for a new graphite prospect, Karhunmäki, and Fennoscandian playing an important role in studies into the Lithium Ion Battery supply chain in Finland and improving the traceability of battery raw material supply.  In recent months, Fennoscandian has completed spheroidization testwork and battery tests on Aitolampi graphite, the results of which will be announced in the coming weeks.

 

"Since my attendance at the Nordic Mining Day in Toronto in early March, the Company has acted to face the ongoing threat posed by COVID-19, as best we can, including 30 percent salary cuts for the CEO and Board, and sought to maintain a 'business as usual' attitude. 

 

"This week, the Company updated the market on a Parliamentary Question to Minister Baylan, which he is due to answer on 3 June 2020.  Minister Baylan has responded to questions in the past highlighting the complexity of the Kallak case.

 

"The Kallak case is not complex.  During my time as CEO, no authority has presented me with a long list of problems that needed fixing.  This is why the Board has consistently stated that the Kallak application is comprehensive and satisfies the requirements of the prescribed process for being granted an Exploitation Concession in accordance with Swedish law. 

 

"Last year, the Company went further, engaging lawyers to prepare a Concluding Statement, submitted to the Government in November 2019, which demonstrated that, under judicial review, Beowulf's application has satisfied all requirements. 

 

"Bergsstaten (the "Mining Inspectorate"), part of the Geological Survey of Sweden ("SGU"), a Government Office, has granted Exploration Permits for Kallak, the first in 2006, and seen the Company drill almost 28,000 metres, 131 holes, to define a significant iron ore resource. 

 

"The SGU first discovered Kallak in the 1940s, designated it an Area of National Interest ("ANI") in 2013 and produced its latest study, headlined 'New light on iron ore at Kallak', this month.  Kallak has been on the SGU's radar for 80 years!

 

"Bergsstaten recommended to the Government in October 2015, that the Concession for Kallak should be awarded, and last October awarded an Exploration Permit for Parkijaure nr 6, which covers approximately 1,000 hectares and lies immediately to the south of the Kallak deposits.  On the evidence, the authorities are happy for companies to spend on exploration, in the case of Kallak over SEK 80 million to date,  but it is another story when it is time to consider granting an Exploitation Concession.

 

"In Toronto, Minister Baylan saved his biggest welcome for investors. Beowulf has been invested in Sweden and working on Kallak for 14 years. Minister Baylan said that I was welcome to do business in Sweden. The fact of the matter is, Beowulf is unable to do business, because we cannot get a decision from the Swedish Government and take Kallak forward in partnership with the community in Jokkmokk.

 

"In May 2019, the State Secretary said, to the Chairman and me, in a face to face meeting, that the Government understood the importance of Kallak to Jokkmokk.  Now more than ever, with COVID-19, it would be logical to assume that a project such as Kallak, which has the potential to bring billions of SEK in investment and hundreds of jobs to northern Sweden, should finally gain approval. 

 

"Beowulf has several thousand Swedish shareholders, who own nearly 68 per cent of the Company.  They, and the Company's non-Swedish shareholders, have a right to know now what is happening with the Kallak application and when a Government decision will be forthcoming.  At this time, the Government needs to be transparent and remove the uncertainty as to when a decision will be taken.

 

"We look forward to keeping the market updated on further developments."

 

 

Financials

 

·           The consolidated loss remaining largely unchanged in quarter ended at £217,342 (Q1 2019: £223,096). This decrease is partly attributable to no share-based payment charge relating to employees and Directors options for the quarter compared to £40,022 incurred in the previous quarter. This decrease is offset by the consolidation of administration costs of £44,034 associated with Vardar Minerals which became a subsidiary on 1 April 2019.

·           Consolidated basic and diluted loss per share for the quarter ended 31 March 2020 was 0.03 pence (Q1 2019: loss of 0.04 pence).

·           £789,310 in cash held at the period end (Q1 2019: £1,229,606).

·           The cumulative translation losses held in equity decreased by £120,819 in the quarter ended 31 March 2020 to £1,166,859 (31 December 2019: loss of £1,291,068). Much of the Company's exploration costs are in Swedish Krona and Euro which has strengthened against the pound since 31 December 2019.

·           At 30 April 2020 there were 402,150,037 Swedish Depository Receipts representing 66.78 per cent of the issued share capital of the Company. The remaining issued share capital of the Company is held in the UK.

Operational

Vardar Minerals, Kosovo

·      On 17 February 2020, the Company announced that Vardar, has identified an additional copper-zinc exploration target at Mitrovica. Mineralised gossans have been identified through field mapping and sampling to the north and east of drill tested mineralisation at Wolf Mountain. The mineralised gossans identified appear to be the surface expression of hydrothermal breccias and stockworks.

Significant anomalies have been returned from rock grab sampling and soil sampling grids over the area, with several rock samples showing greater than 1 per cent copper and up to 3 per cent lead and soil samples routinely over 500ppm copper and up to 1 per cent lead and zinc.

·      At the same time, Beowulf announced that it had invested £50,000 in Vardar, increasing the Company's ownership from 41.5 per cent to 42.2 per cent. Funds to be used for testing of an automated terrain-following drone which will be used to collect magnetic IP ("MIP") and magnetometric resistivity ("MMR") data over priority areas at Viti and Mitrovica.  Results from the drone surveys will be combined with 3D Induced Polarisation surveys to generate drill targets.

·      On 25 March 2020, Beowulf invested a further £30,000 in Vardar, alongside founders and existing shareholders in Vardar who themselves invested £40,000, to fund an infill soil sampling programme over approximately one square kilometre across the Madjan Peak gold target at Mitrovica.  The total proceeds from the fundraising amounted to £70,000. The Company's ownership interest remained at 42.2 per cent.

Madjan Peak has returned anomalous gold and silver assays along the eastern margin of the license, corresponding with previously mapped advanced argillic alteration, identified historic gold workings/pits and anomalous rock chip samples (up to 7.2 grammes per tonne gold).  Gold values correlate well with arsenic, which provides a useful (more sensitive) corresponding dataset to define anomaly positions. Previous soil sampling was completed on a 200 metre x 50 metre grid. Spacing will be reduced to 50 metre x 50 metre in order to provide better definition for drill targets.

·      Vardar is also planning to fly an ultra-detailed drone magnetic survey over its entire licence package, Mitrovica and Viti. Vardar has acquired the drone, sensors and support equipment and has developed flight automation software over the winter period. This software is now in testing and when completed will assist in flying accurate low-level survey lines across mountainous terrain.

Finland

·      On 18 May 2020, the Company provided an update on the activities of its 100 per cent owned subsidiary Fennoscandian.

Fennoscandian continues to develop a 'resource footprint' of natural flake graphite to provide 'security of supply' to Finland's emerging battery sector and to benefit from Business Finland funding, as the Company seeks to move downstream and develop its knowledge in processing and manufacturing battery grade and value-added graphite products.

Since Fennoscandian was acquired in January 2016, Beowulf has invested approximately Euros 1.56 million in graphite exploration, resource development, metallurgical testwork and the assessment of market applications for graphite from its Aitolampi project, including Lithium Ion Battery ("LIB") applications.

·      Testwork on a composite sample for Karhunmäki, a new graphite prospect, produced a concentrate grade of 96.4 per cent Total Graphitic Carbon ("TGC"), with 51.3 per cent large/jumbo flakes (+180 micron).  An Exploration Permit application has been submitted.

·      After upgrading the Mineral Resource Estimate ("MRE") for Aitolampi in 2019, now with an Indicated  and Inferred Mineral Resource of 26.7 million tonnes at 4.8 per cent TGC for 1,275,000 tonnes of contained graphite, Fennoscandian will report, in the coming weeks, on the results of spheroidization testwork and battery tests on Aitolampi graphite.

·      Fennoscandian is supporting a study into the supply chain for LIBs in Finland and collaborating with Åbo Akademi in Turku, Finland.

·      Fennoscandian has joined, as a consortium member, the Business Finland funded BATTrace project, which aims to improve traceability along the battery raw materials value chain using mineralogical/geochemical fingerprinting, to validate responsible and sustainable sourcing of cobalt, nickel, lithium and graphite.

Sweden

·      The Company announced, on 3 February 2020, that the Board would be meeting in Stockholm to discuss the continuing and unacceptable delays in getting a decision from the Swedish Government for the Kallak Concession. The Board was already in receipt of a paper detailing options, prepared by the Company's lawyers, and actively considering ring-fencing funds for legal action. 

·      On 4 February 2020, the Company announced that in response to the CEO's letter sent to Minister Ibrahim Baylan in December 2019, the Government stated it was not able to comment on when a decision, in respect of the Concession for Kallak, is expected to be taken, however, the Government had taken careful note of the information provided by the Company.

·      The Company provided, on 13 February 2020, a management update on Kallak where the Company stated that contrary to media reports, no legal action has yet been taken against the Government, but that all options to take legal action remain under active consideration.

·      The Board stated that it was satisfied that the Company's application for the Concession for Kallak fully meets the requirements of Swedish mining and environmental legislation.  

·      On 26 May 2020, the Company announced that a Parliamentary Question regarding Kallak had been put to Mr Ibrahim Baylan, Minister for Business, Industry and Innovation, which the Minister is scheduled to answer on 3 June 2020. The question was posed by Lars Hjälmered, a Moderate Party Member in the Swedish Parliament.

Summary translation of Mr Hjälmered's question:

"The Kallak iron ore project has had to wait for a decision on permits for over six years.  The matter has been ready to make a decision on the Minister's table for three years without him and the Government making any decision. Another project received [by the Government and] waiting unreasonably long for a decision is Laver [Boliden AB].

In the [mining] industry, the question is now asked why the Government is not coming to terms with it. Despite repeated questions about when a decision may be made, and great irritation from the industry, [the Government] has not yet returned to the issue.

This management [of the issue by the Government] is under all criticism, and the Government must recognize the importance of it to Swedish mining industry. The industry is responsible for large export revenues and employment [of] many people in Sweden. When the Government cannot give any message, investments are not completed, jobs are [not created] and [wider] benefits are not realized. In addition, long processing times and uncertain processes mean Sweden becomes less relevant to foreign investment.

In view of the above, I would like to ask Minister of Business Ibrahim Baylan: When does the Minister and the Government intend to make a decision on any mining activity in Kallak and Laver?"

·      On 27 May 2020, the Company announced that it had a awarded a drilling contract for Kallak to Kati Oy.  The work programme, scheduled for Autumn 2020, will determine if a 3D seismic model can be constructed, using the established seismic characteristics of the Kallak deposit, and whether the 3D model can be used to identify additional iron ore mineralisation for the Exploration Target of 90-100 Mt at 22-30 per cent iron Fe at Kallak.

The work is being undertaken as part of the European Union ("EU") funded PACIFIC Project ("PACIFIC").  The aim of PACIFIC is to develop a new low-cost and environmentally friendly tool for exploring for sub-surface mineral deposits. The programme will test a multi-array method in parallel with drilling at Kallak South, with noise from drilling providing a passive seismic source.

The magnetic signature of mineralisation at Kallak, extends southwards from Kallak North to Kallak South, and then beyond to Parkijaure.  Interpretation of geophysical data suggests the potential for additional iron ore mineralisation, which could add to the Kallak North and Kallak South resource.

If successful, the set-up could then be applied to the Parkijaure nr 6 Exploration Licence, awarded by the Mining Inspectorate in October 2019, which covers approximately 1,000 hectares and lies immediately to the south of the Kallak deposits. 

 

Enquiries:

 

Beowulf Mining plc

 

Kurt Budge, Chief Executive Officer

Tel: +44 (0) 20 3771 6993

SP Angel

(Nominated Adviser & Broker)

 

Ewan Leggat / Soltan Tagiev

Tel: +44 (0) 20 3470 0470

Blytheweigh 

 

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 forecasts.

 

 

 

 

BEOWULF MINING PLC

CONDENSED CONSOLIDATED INCOME STATEMENT

 

FOR THE THREE MONTHS TO 31 MARCH 2020

 

 

                                                             

Notes

(Unaudited)

3 months ended 31 March

 2020

 

 

£

(Unaudited)

3 months ended 31 March

2019

 

 

£

(Unaudited)   

12 months ended 31 December 2019

 

 

£

Continuing operations

 

 

 

 

 

 

 

 

 

Administrative expenses

 

(217,651)

(183,650)

(904,666)

Impairment of exploration costs

 

-

-

(10,720)

Share based payment expense

 

-

(40,022)

(119,720)

Share of loss of associates

 

-

(2,246)

-

Gain on step acquisition

 

-

-

563,431

 

 

 

 

 

Operating (Loss)

 

(217,651)

(225,918)

(471,675)

 

 

 

 

 

 

 

 

 

 

Finance costs

 

(88)

-

(410)

Finance income

 

397

2,822

6,298

Grant Income

 

-

-

37,080

(Loss) before and after taxation

 

 

(217,342)

   (223,096)

(428,707)

 

 

 

 

 

Loss attributable to:

 

 

 

 

Owners of the parent

 

(191,543)

(223,055)

(249,192)

Non-controlling interests

 

(25,799)

(41)

(179,515)

 

 

 

 

 

 

 

 

(217,342)

(223,096)

(428,707)

 

 

 

 

 

Loss per share attributable to the owners of the parent:

 

 

 

 

Basic and diluted (pence)                           

3

(0.03)

(0.04)

(0.04)

 

 

BEOWULF MINING PLC

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE LOSS

FOR THE THREE MONTHS TO 31 MARCH 2020

 

 

 

 

(Unaudited)

3 months ended 31 March

 2020

 

£

(Unaudited)

3 months ended 31 March

 2019

 

£

(Unaudited)

12 months

ended 31 December 2019

 

£

 

 

 

 

 

 (Loss) for the period / year

 

(217,342)

(223,096)

(428,707)

Other comprehensive income

 

 

 

 

Items that may be reclassified subsequently to profit or loss:

 

 

 

 

 

 

 

 

 

Exchange gain/ (losses) arising on translation of foreign operations

 

124,676

(529,814)

(794,299)

Total comprehensive (loss)

 

(92,666)

(752,910)

(1,223,006)

 

 

 

 

 

Total comprehensive (loss) attributable to:

 

 

 

 

Owners of the parent

 

(70,725)

(752,748)

(1,037,811)

Non-controlling interests

 

(21,941)

(162)

(185,195)

 

 

(92,666)

(752,910)

(1,223,006)

 

 

 

 

 

 

 

 

 

 

 

 

BEOWULF MINING PLC

CONDENSED COMPANY STATEMENT OF COMPREHENSIVE INCOME

 

FOR THE THREE MONTHS TO 31 MARCH 2020

 

 

 

 

                                                             

Notes

(Unaudited)

3 months ended 31 March

 2020

 

£

(Unaudited)

3 months ended 31 March

 2019

 

£

(Unaudited)   

12 months ended 31 December 2019

 

£

Continuing operations

 

 

 

 

 

 

 

 

 

Administrative expenses

 

(157,336)

(163,032)

(651,433)

Share based payment expense

 

-

(40,022)

(119,720)

 

 

 

 

 

Operating Loss

 

(157,336)

(203,054)

(771,153)

 

 

 

 

 

 

 

 

 

 

Finance income

 

396

2,822

6,298

Grant Income

 

-

-

1,425

Loss before and after taxation and total comprehensive loss

 

 

(156,940)

(200,232)

(763,430)

 

 

 

 

 

Loss per share attributable to the owners of the parent:

 

 

 

 

Basic and diluted (pence)                           

3

(0.03)

(0.04)

(0.03)

 

 

 

BEOWULF MINING PLC

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

 

AS AT 31 MARCH 2020

 

 

 

 

(Unaudited)

As at

31

March

 2020

£

 

(Unaudited)

As at

31

March

2019

£

 

(Unaudited)

As at

31

December 2019

£

ASSETS

Notes

 

 

 

 

 

 

Non-current assets

 

 

 

 

 

 

 

Intangible assets

5

 

10,427,186

 

7,856,750

 

10,213,722

Property, plant and equipment

 

 

126,637

 

28,129

 

86,998

Investments

 

 

-

 

227,874

 

-

Loans and other financial assets

 

 

5,234

 

5,284

 

5,212

Right of use asset

 

 

6,018

 

-

 

7,324

 

 

 

 

 

 

 

 

 

 

 

10,565,075

 

8,118,037

 

10,313,256

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

Trade and other receivables

 

 

201,572

 

56,995

 

167,261

Cash and cash equivalents

 

 

789,310

 

1,229,606

 

1,124,062

 

 

 

 

 

 

 

 

 

 

 

990,882

 

1,286,601

 

1,291,323

TOTAL ASSETS

 

 

11,555,957

 

9,404,638

 

11,604,579

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EQUITY

 

 

 

 

 

 

 

Shareholders' equity

 

 

 

 

 

 

 

Share capital

4

 

6,022,446

 

5,663,072

 

6,022,446

Share premium

 

 

20,824,009

 

19,266,271

 

20,824,009

Merger Reserve

 

 

137,700

 

137,700

 

137,700

Capital contribution reserve

 

 

46,451

 

46,451

 

46,451

Share based payment reserve

 

 

732,185

 

652,487

 

732,185

Translation reserve

 

 

(1,170,250)

 

(1,049,950)

 

(1,291,068)

Accumulated losses

 

 

(15,770,476)

 

(15,534,988)

 

(15,578,933)

 

 

 

 

 

 

 

 

Total Equity

 

 

10,822,065

 

9,181,043

 

10,892,790

 

 

 

 

 

 

 

 

Non-controlling interests

 

 

365,469

 

(160,749)

 

326,555

TOTAL EQUITY

 

 

11,187,534

 

9,020,294

 

11,219,345

 

LIABILITIES

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

Trade and other payables

 

 

229,412

 

192,139

 

242,885

Grant income

 

 

132,833

 

192,205

 

134,877

Lease Liability

 

 

6,178

 

-

 

7,472

 

 

 

 

 

 

 

 

TOTAL LIABILITIES

 

 

368,423

 

384,344

 

385,234

 

 

 

 

 

 

 

 

TOTAL EQUITY AND LIABILITIES

 

 

11,555,957

 

9,404,638

 

11,604,579

 

 

BEOWULF MINING PLC

CONDENSED COMPANY STATEMENT OF FINANCIAL POSITION

AS AT 31 MARCH 2020

 

 

 

(Unaudited)

As at

31 March

 2020

£

 

(Unaudited)

As at

31 March 2019

£

 

(Unaudited)

As at

31 December 2019

£

ASSETS

 

 

 

 

 

 

Non-current assets

 

 

 

 

 

 

Investments

 

1,777,988

 

732,988

 

1,697,988

Loans and other financial assets

 

9,078,455

 

8,396,593

 

8,989,451

 

 

 

 

 

 

 

 

 

10,856,443

 

9,129,581

 

10,687,439

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

Trade and other receivables

 

32,278

 

24,046

 

23,260

Cash and cash equivalents

 

679,445

 

1,155,768

 

978,514

 

 

 

 

 

 

 

 

 

711,723

 

1,179,814

 

1,001,774

TOTAL ASSETS

 

11,568,166

 

10,309,395

 

11,689,213

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EQUITY

 

 

 

 

 

 

Shareholders' equity

 

 

 

 

 

 

Share capital

 

6,022,446

 

5,663,072

 

6,022,446

Share premium

 

20,824,009

 

19,266,271

 

20,824,009

Merger Reserve

 

137,700

 

137,700

 

137,700

Capital contribution reserve

 

46,451

 

46,451

 

46,451

Share option reserve

 

732,185

 

652,487

 

732,185

Accumulated losses

 

(16,455,799)

 

(15,735,661)

 

(16,298,859)

 

 

 

 

 

 

 

TOTAL EQUITY

 

11,306,992

 

10,030,320

 

 

LIABILITIES

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

Trade and other payables

 

128,341

 

279,075

 

90,404

Grant income

 

132,833

 

-

 

134,877

 

 

 

 

 

 

 

TOTAL LIABILITIES

 

261,174

 

279,075

 

225,281

 

 

 

 

 

 

 

TOTAL EQUITY AND LIABILITIES

 

11,568,166

 

10,309,395

 

11,689,213

 

 

 

BEOWULF MINING PLC

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

 

FOR THE THREE MONTHS TO 31 MARCH 2020

 

 

Share capital

Share premium

Merger reserve

Capital contribution reserve

Share-based payment reserve

Translation reserve

Accumulated losses

Total

Non-

controlling

interest

Total equity

 

£

£

£

£

£

£

£

£

£

£

 

At 1 January 2019

5,663,072

19,266,271

137,700

46,451

612,465

(520,257)

(15,311,933)

9,893,769

(160,587)

9,733,182

 

 

 

 

 

 

 

 

 

 

 

Loss for the period

-

-

-

-

-

-

(223,055)

(223,055)

(41)

(223,096)

Foreign exchange translation

-

-

-

-

-

(529,693)

-

(529,693)

(121)

(529,814)

Total comprehensive loss

-

-

-

-

-

(529,693)

(223,055)

(752,748)

(162)

(752,910)

 

 

 

 

 

 

 

 

 

 

 

Transactions with owners

 

 

 

 

 

 

 

 

 

 

Equity-settled share-based payment transactions

-

-

-

-

40,022

-

-

40,022

-

40,022

 

At 31 March 2019 (Unaudited)

5,663,072

19,266,271

137,700

46,451

652,487

(1,049,950)

(15,534,988)

9,181,043

(160,749)

9,020,294

 

 

 

 

 

 

 

 

 

 

 

Loss for the period

-

-

-

-

-

-

(43,945)

(43,945)

(161,666)

(205,611)

Foreign exchange translation

-

-

-

-

-

(241,118)

-

(241,118)

(23,367)

(264,485)

Total comprehensive loss

-

-

-

-

-

(241,118)

(43,945)

(285,063)

(185,033)

(470,096)

 

 

 

 

 

 

 

 

 

 

 

Transactions with owners

 

 

 

 

 

 

 

 

 

 

Issue of share capital

359,374

1,651,043

-

-

-

-

-

-

-

2,010,417

Issue costs

-

(93,305)

-

-

-

-

-

-

-

(93,305)

Equity-settled share-based payment transactions

-

-

-

-

79,698

-

-

79,698

-

79,698

Acquisition of subsidiary

-

-

-

-

-

-

-

-

672,337

672,337

 

 

 

 

 

 

 

 

 

 

 

At 31 December 2019 (Unaudited)

6,022,446

20,824,009

137,700

46,451

732,185

(1,291,068)

(15,578,933)

10,892,790

326,555

11,219,345

 

 

 

 

 

 

 

 

 

 

 

Loss for the period

-

-

-

-

-

-

(191,543)

(191,543)

(25,799)

(217,342)

Foreign exchange translation

-

-

-

-

-

120,818

-

120,818

3,858

124,676

Total comprehensive loss

 

 

 

 

-

120,818

(191,543)

(70,724)

(21,941)

(92,666)

 

 

 

 

 

 

 

 

 

 

 

Transactions with owners

 

 

 

 

 

 

 

 

 

 

Investments by Minority interest

-

-

-

-

-

-

-

-

60,855

60,855

At 31 March 2020 (Unaudited)

6,022,446

20,824,009

137,700

46,451

732,185

(1,170,250)

(15,770,476)

10,822,065

365,469

11,187,534

 

 

BEOWULF MINING PLC

CONDENSED COMPANY STATEMENT OF CHANGES IN EQUITY

FOR THE THREE MONTHS TO 31 MARCH 2020

 

 

 

Share capital

Share premium

Merger reserve

Capital contribution reserve

Share-based payment reserve

Accumulated losses

Total

 

£

£

£

£

£

£

£

 

At 1 January 2019

5,663,072

19,266,271

137,700

46,451

612,465

(15,535,429)

10,190,530

 

 

 

 

 

 

 

 

Loss for the period

-

-

-

-

-

(200,232)

(200,232)

Total comprehensive loss

-

-

-

-

-

(200,232)

(200,232)

 

 

 

 

 

 

 

 

Transactions with owners

 

 

 

 

 

 

 

Equity-settled share-based payment transactions

-

-

-

-

40,022

-

40,022

 

At 31 March 2019 (Unaudited)

5,663,072

19,266,271

137,700

46,451

652,487

(15,735,661)

10,030,320

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss for the period

-

-

 

 

 

(563,198)

(563,198)

Total comprehensive loss

-

-

 

 

 

(563,198)

(563,198)

 

 

 

 

 

 

 

 

Transactions with owners

 

 

 

 

 

 

 

Issue of share capital

359,374

1,651,043

-

-

-

-

2,010,417

Issue costs

-

(93,305)

-

-

-

-

(93,305)

Equity-settled share-based payment transactions

-

-

-

-

79,698

-

79,698

 

 

 

 

 

 

 

 

At 31 December 2019 (Unaudited) (Unaudited)

6,022,446

20,824,009

137,700

46,451

732,185

(16,298,859)

11,463,932

 

 

 

 

 

 

 

 

Loss for the period

-

-

-

-

-

(156,940)

(156,940)

Total comprehensive loss

-

-

-

-

-

(156,940)

(156,940)

 

 

 

 

 

 

 

 

At 31 March 2020 (Unaudited)

6,022,446

20,824,009

137,700

46,451

732,185

(16,455,799)

11,306,992

 

 

 

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED INTERIM FOR THE THREE MONTHS TO 31 MARCH 2020

 

 

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 International Financial Reporting Standards (IFRS) as adopted by the European Union (EU) and implemented in the UK. 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 unaudited financial statements for the year ended 31 December 2019 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 quarter ended 31 March 2019 and twelve months ended 31 December 2019 is unaudited and has not been reviewed by the auditors. The financial information for the three month period ended 31 March 2020 is unaudited and has not been reviewed by the auditors. The audit of the financial information for the year ended 31 December 2019 has not yet been completed and therefore the financial information is considered unaudited until the approval of the audited financial statements. The auditor's report on the statutory financial statements for the year ended 31 December 2018 was unqualified and did not contain any statement under sections 498 (2) or (3) of the Companies Act 2006. The audit report did contain a material uncertainty with respect of going concern, however following additional audit procedures and noting it as key audit matter, it was concluded the going concern basis was appropriate.  

 

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.

 

 

3. Share Capital

 

 

 

(Unaudited)

 

(Unaudited)

 

(Unaudited)

 

31 March 2020

 

31 March 2019

 

31 Dec 2019

 

£

 

£

 

£

Allotted, issued and fully paid

 

 

 

 

 

Ordinary shares of 1p each

 

 

 

 

 

 

6,022,446

 

5,663,072

 

6,022,446

 

 

 

The number of shares in issue was as follows:

 

 

 

Number

 

of shares

Balance at 1 January 2019

566,307,254

Issued during the period

-

Balance at 31 March 2019

566,307,254

Issued during the period

35,937,418

Balance at 31 December 2019

602,244,672

Issued during the period

-

Balance at 31 March 2020

602,244,672

 

 

 

4. Intangible Assets: Group

 

Exploration costs

 

 

As at 31 March  

2020

 

As at 31 December

2019

 

 

(Unaudited)

 

(Unaudited)

 

 

£

 

£

Cost

 

 

 

 

At 1 January 

 

10,213,722

 

8,285,547

Additions for the year

 

64,201

 

748,354

Additions arising from the step-up in interest in Vardar

 

20,854

 

1,962,455

Foreign exchange movements

 

128,409

 

(771,914)

Impairment

 

-

 

(10,720)

 

 

 

 

 

 

 

 

10,427,186

 

10,213,722

 

The net book value of exploration costs is comprised of expenditure on the following projects:

 

 

 

As at

31

March 

 2020

 

As at

31

December

2019

 

 

 

(Unaudited)

 

(Unaudited)

 

 

 

£

 

£

Project

Country

 

 

 

 

Kallak

Sweden

 

6,719,487

 

6,675,124

Åtvidaberg

Sweden

 

 349,986

 

345,978

Ågåsjiegge

Sweden

 

 16,739

 

15,568

Pitkäjärvi

Finland

 

1,165,449

 

1,058,078

Joutsijärvi

Finland

 

 20,933

 

19,095

Rääpysjärvi

Finland

 

 41,934

 

39,905

Karhunmäki

Finland

 

 33,568

 

24,078

Merivaara

Finland

 

 22,817

 

17,846

Polvela

Finland

 

 33,201

 

31,316

Tammijärvi

Finland

 

 25,822

 

24,278

Mitrovica

Kosovo

 

1,407,933

 

1,382,845

Viti

Kosovo

 

 589,318

 

579,612

 

 

 

10,427,186

 

10,213,722

 

Total Group exploration costs of £10,427,186 are currently carried at cost in the financial statements. No impairment has been recognised during the year, (2019: Sala £10,720).

 

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 are 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 risk currently facing the Group is that it does not receive an Exploitation Concession for Kallak. The Company originally applied for the Exploitation Concession in April 2013 and throughout 2017, and since the year-end, management have actively sought to progress the application, engaging with the various government bodies and other stakeholders. These activities are summarised above.

 

 

 

Kallak is included in the condensed financial statements as at 31 March 2020 as an intangible exploration licence with a carrying value of £6,719,487. Management have considered the status of the application for the Exploitation Concession and in their judgement, they believe it is appropriate to be optimistic about the chances of being awarded the Exploitation Concession and thus have not impaired the project.

 

5. 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 www.beowulfmining.com. Beowulf Mining plc is registered in England and Wales with registered number 02330496.

 

 

** Ends **

 


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.
 
END
 
 
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