07:00 Thu 30 Jul 2020
Empire Metals Ltd - Interim Results
Interim Results
Chairman's Statement
The first half of 2020 has been productive for the Company and has seen an expansion of our project portfolio, a refocus on our growth strategy and a rebranding to
The period started encouragingly in
As previously announced, an appeal process is currently underway to challenge NAM's position on the remainder of the
The most notable developments during the period have happened outside of
After evaluating a number of potential opportunities, on
Munni Munni comprises four granted mining leases and an exploration licence covering a 64km2 tenement area. It is the largest unexploited primary PGE resource in
Unfortunately, as announced by Empire on Monday
Artemis denies Platina's claim and state that they intend to vigorously defend their position, and wish to move forwards with Empire to develop the Mummi Munni project.
Financial
For the six-month period ended
The Group's net cash balance as at
Outlook
This has been significant period for EEE which has delivered substantial developments, after what was a challenging 2019. The Company has been strengthened both financially and corporately in 2020 and on behalf of the Board, I am optimistic about our ability to deliver on our key strategic aims this year. We are of course cognisant of the unprecedented global disruption which the COVID-19 pandemic is creating for communities and economies worldwide, however the Board has adopted a prudent and responsible approach to both our financial and operational activities and we are confident that EEE is well equipped to weather the current market turbulence.
We look forward to reporting on our activities in
Non-Executive Chairman
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.
**ENDS**
For further information please visit https://www.empiremetals.co.uk or contact:
|
|
Company |
Tel: 020 7907 9327 |
|
S. |
Nomad & Broker |
Tel: 020 3470 0470 |
|
S. |
Nomad & Broker |
Tel: 020 3470 0470 |
|
|
Joint Broker |
Tel: 020 7186 9950 |
Susie Geliher |
St Brides Partners Ltd |
PR |
Tel: 020 7236 1177 |
Beth Melluish |
St Brides Partners Ltd |
PR |
Tel: 020 7236 1177 |
About Empire Metals Limited
The acquisition of Munni Munni is a result of the Company's ongoing assessments of the potential for expanding the Company's portfolio through the addition of new assets which have the ability to add value in the short term.
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
|
Notes |
6 months to £ |
6 months to £ |
Continuing operations |
|
|
|
Revenue |
|
1,204 |
83,145 |
Administration expenses |
|
(223,013) |
(400,296) |
Foreign exchange |
|
7,017 |
(8,184) |
Operating Loss |
|
(214,792) |
(325,335) |
Share of profit from joint venture |
5 |
471,307 |
- |
Impairments |
|
- |
(51,992) |
Profit/(Loss) Before Income Tax |
|
256,515 |
(377,327) |
Income tax expense |
|
- |
- |
Profit/(Loss) for the period |
|
256,515 |
(377,327) |
Profit/(Loss) attributable to: |
|
|
|
- owners of the Parent |
|
256,515 |
(377,327) |
- non-controlling interests |
|
- |
- |
Profit/(Loss) for the period |
|
256,515 |
(377,327) |
Other comprehensive income |
|
|
|
Items that may be subsequently reclassified to profit or loss |
|
|
|
Currency translation differences |
|
- |
1,022 |
Total comprehensive income |
|
256,515 |
(376,305) |
Attributable to: |
|
|
|
- owners of the Parent |
|
256,515 |
(376,305) |
- non-controlling interests |
|
- |
- |
Total comprehensive income |
|
256,515 |
(376,305) |
Earnings per share (pence) from continuing operations attributable to owners of the Parent - Basic and diluted |
6 |
0.150 |
(0.324) |
CONDENSED CONSOLIDATED BALANCE SHEET
|
Notes |
Unaudited £ |
£ |
Non-Current Assets |
|
|
|
Property, plant and equipment |
|
3,052 |
17,882 |
Investments in |
5 |
497,488 |
- |
|
|
500,540 |
17,882 |
Current Assets |
|
|
|
Trade and other receivables |
|
182,667 |
167,971 |
Cash and cash equivalents |
|
364,369 |
50,840 |
|
|
547,036 |
218,811 |
Total Assets |
|
1,047,576 |
236,693 |
Current Liabilities |
|
|
|
Trade and other payables |
|
74,859 |
91,191 |
Total Liabilities |
|
74,859 |
91,191 |
Net Assets |
|
972,717 |
145,502 |
Equity Attributable to owners of the Parent |
|
|
|
Share premium account |
6 |
39,836,337 |
39,265,637 |
Reverse acquisition reserve |
|
(18,845,147) |
(18,845,147) |
Other Reserves |
|
138,014 |
138,014 |
Retained losses |
|
(20,156,487) |
(20,413,002) |
Total equity attributable to owners of the Parent |
|
972,717 |
145,502 |
Non-controlling interest |
|
- |
- |
Total Equity |
|
972,717 |
145,502 |
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
|
|
|
|
|
||||
|
Share premium £ |
Reverse acquisition reserve £ |
Other Reserves £ |
Retained losses £ |
Total £ |
Non-controlling interest £ |
Total equity £ |
|
As at |
38,904,337 |
(18,845,147) |
136,020 |
(19,737,410) |
457,800 |
- |
457,800 |
|
Comprehensive income |
|
|
|
|
|
|
|
|
Loss for the period |
- |
- |
- |
(377,327) |
(377,327) |
- |
(377,327) |
|
Other comprehensive income |
|
|
|
|
|
|
|
|
Currency translation differences |
- |
- |
1,022 |
- |
1,022 |
- |
1,022 |
|
Total comprehensive income |
- |
- |
1,022 |
(377,327) |
(376,305) |
- |
(376,305) |
|
Issue of ordinary shares |
380,000 |
- |
- |
- |
380,000 |
- |
380,000 |
|
Issue costs |
(18,700) |
- |
- |
- |
(18,700) |
- |
(18,700) |
|
Total transactions with owners |
361,300 |
- |
- |
- |
361,300 |
- |
361,300 |
|
As at |
39,265,637 |
(18,845,147) |
137,042 |
(20,114,737) |
442,795 |
- |
442,795 |
|
|
|
|
|
|
||||
|
Share premium £ |
Reverse acquisition reserve £ |
Other Reserves £ |
Retained losses £ |
Total £ |
Non-controlling interest £ |
Total equity £ |
|
As at |
39,265,637 |
(18,845,147) |
138,014 |
(20,413,002) |
145,502 |
- |
145,502 |
|
Comprehensive income |
|
|
|
|
|
|
|
|
Profit/(Loss) for the period |
- |
- |
- |
256,515 |
256,515 |
- |
256,515 |
|
Other comprehensive income |
|
|
|
|
|
|
|
|
Currency translation differences |
- |
- |
- |
- |
- |
- |
- |
|
Total comprehensive income |
- |
- |
- |
256,515 |
256,515 |
- |
256,515 |
|
Issue of ordinary shares |
600,000 |
- |
- |
- |
600,000 |
- |
600,000 |
|
Issue costs |
(29,300) |
- |
- |
- |
(29,300) |
- |
(29,300) |
|
Total transactions with owners |
570,700 |
- |
- |
- |
570,700 |
- |
570,700 |
|
As at |
39,836,337 |
(18,845,147) |
138,014 |
(20,156,487) |
972,717 |
- |
972,717 |
|
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
|
|
£ |
£ |
|
Cash flows from operating activities |
|
|
|
|
Profit/(Loss) before taxation |
|
256,515 |
(377,327) |
|
Adjustments for: |
|
|
|
|
Depreciation |
|
7,554 |
15,202 |
|
Gain on sale of PPE |
|
(12,724) |
- |
|
Impairment of asset |
|
- |
51,992 |
|
Share of profit on joint venture |
|
(471,307) |
- |
|
Foreign exchange |
|
(7,017) |
(494) |
|
Increase in trade and other receivables |
|
(7,679) |
(50,790) |
|
Decrease in trade and other payables |
|
(16,332) |
(45,913) |
|
Net cash used in operations |
|
(250,990) |
(407,330) |
|
Cash flows from investing activities |
|
|
|
|
Loans granted to joint venture partners |
|
(26,181) |
(50,476) |
|
Sale of property, plant & equipment |
|
20,000 |
- |
|
Additions to exploration and evaluation intangibles |
|
- |
- |
|
Net cash used in investing activities |
|
(6,181) |
(50,476) |
|
Cash flows from financing activities |
|
|
|
|
Proceeds from issue of shares |
|
600,000 |
380,000 |
|
Cost of issue |
|
(29,300) |
(18,700) |
|
Net cash from financing activities |
|
570,700 |
361,300 |
|
Net (decrease) / increase in cash and cash equivalents |
|
313,529 |
(96,506) |
|
Cash and cash equivalents at beginning of period |
|
50,840 |
525,354 |
|
Exchange differences on cash |
|
- |
- |
|
Cash and cash equivalents at end of period |
|
364,369 |
428,848 |
|
Major non-cash transactions
There were no major non-cash transactions in the period.
NOTES TO THE INTERIM FINANCIAL STATEMENTS
1. General Information
The principal activity of
The address of the Company's registered office is Trident Chambers, PO Box 146,
2. Basis of Preparation
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 this interim financial information. The condensed interim financial statements should be read in conjunction with the annual financial statements for the year ended
The interim financial information set out above does not constitute statutory accounts. They have been prepared on a going concern basis in accordance with the recognition and measurement criteria of International Financial Reporting Standards (IFRS) as adopted by the
Going concern
The Directors, having made appropriate enquiries, consider that adequate resources exist for the Group to continue in operational existence for the foreseeable future and that, therefore, it is appropriate to adopt the going concern basis in preparing the condensed interim financial statements for the period ended
The factors that were extant at the
Risks and uncertainties
The Board continuously 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 2019 Annual Report and Financial Statements, a copy of which is available on the Group's website: https://www.empiremetals.co.uk. The key financial risks are liquidity risk, foreign exchange risk, credit risk, price risk and interest rate risk.
Critical accounting estimates
The preparation of condensed interim financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, income and expenses, and disclosure of contingent assets and liabilities at the end of the reporting period. Significant items subject to such estimates are set out in note 4 of the Group's 2019 Annual Report and Financial Statements. Actual amounts may differ from these estimates. The nature and amounts of such estimates have not changed significantly during the interim period.
3. Accounting Policies
The same accounting policies, presentation and methods of computation have been followed in these condensed interim financial statements as were applied in the preparation of the Group's annual financial statements for the year ended
3.1 Changes in accounting policy and disclosures
(a) Accounting developments during 2020
(a) New and amended standards mandatory for the first time for the financial periods beginning on or after
As of
b) New standards, amendments and interpretations in issue but not yet effective or not yet endorsed and not early adopted
Standards, amendments and interpretations that are not yet effective and have not been early adopted are as follows:
Standard |
Impact on initial application |
Effective date |
IAS 1 |
Classification of Liabilities as Current or Non-Current. |
* |
* Subject to EU endorsement
The Group is evaluating the impact of the new and amended standards above which are not expected to have a material impact on future Group financial statementss
4. Dividends
No dividend has been declared or paid by the Company during the six months ended
5. Joint venture
On
Name of entity |
Address of the registered office SI 2017/980 |
% of ownership interest |
Nature of relationship |
Measurement method |
Georgian Copper & Gold JSC |
6 Saakadze Descent, 2nd Fl. Tbilisi 0171, Georgia |
50 |
As above |
Equity |
On
Summarised financial information of joint venture
|
|
|
|
|
|
|
|
|
|
Property, plant and equipment |
|
42,752 |
|
53,933 |
Cash |
|
103 |
|
2,591 |
Intangibles |
|
2,285,855 |
|
4,364 |
Other receivables |
|
52,576 |
|
53,376 |
Total assets |
|
2,381,286 |
|
114,264 |
Trade and other payables |
|
246,837 |
|
210,830 |
Loan with |
|
979,883 |
|
955,222 |
Total liabilities |
|
1,226,720 |
|
1,166,052 |
The joint venture generated a profit after tax of
During the period, the Company loaned GCG
The carrying value of the investment at
|
|
|
|
Total |
|
|
|
|
£ |
As at |
|
|
|
- |
Share of profit from joint venture |
|
|
|
1,107,633 |
Loans granted to joint venture |
|
|
|
26,181 |
Recognition of unrecognised losses from prior periods |
|
|
|
(636,326) |
As at |
|
|
|
497,488 |
The Group has no obligation or commitments to contribute to any losses in excess of the carrying value of the investment.
6. Share capital and share premium
|
Number of shares |
Ordinary shares |
Share premium |
Total |
|
|
£ |
£ |
£ |
Issued and fully paid |
|
|
|
|
As at |
114,756,991 |
- |
38,904,337 |
38,904,337 |
Share issue - |
19,000,000 |
- |
361,300 |
361,300 |
As at |
133,756,991 |
- |
39,265,637 |
39,265,637 |
|
|
|
|
|
As at |
133,756,991 |
- |
39,265,637 |
39,265,637 |
Share issue - |
60,000,000 |
- |
570,700 |
570,700 |
As at |
193,756,991 |
- |
39,836,337 |
39,836,337 |
7. Loss per share
The calculation of the total basic earnings per share of 0.
No diluted earnings per share is presented as the effect on the exercise of share options would be to decrease the loss per share.
Details of share options that could potentially dilute earnings per share in future periods are disclosed in the notes to the Group's Annual Report and Financial Statements for the year ended
8. Fair value estimation
There are no financial instruments carried at fair value.
9. Fair value of financial assets and liabilities measured at amortised costs
Financial assets and liabilities comprise the following:
· Trade and other receivables
· Cash and cash equivalents
· Trade and other payables
The fair values of these items equate to their carrying values as at the reporting date.
10. Commitments
All commitments remain as stated in the Group's Annual Financial Statements for the year ended
11. Events after the balance sheet date
There have been no events after the reporting date of a material nature.
12. Approval of interim financial statements
The condensed interim financial statements were approved by the Board of Directors on
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