07:00 Wed 30 Sep 2020
Bluejay Mining PLC - Half-year Report
Bluejay Mining plc / EPIC: JAY / Market: AIM / Sector: Mining
Bluejay Mining plc ('Bluejay' or the 'Company')
Interim Results
Bluejay Mining plc, the AIM and FSE listed exploration company with projects in
Overview:
·
o Focussed on commencing near-term production at world class Dundas Ilmenite Project ('
o
o Confidential MOU extended to allow definitive agreement to be executed with multinational trading firm for between 250 to 300ktpa
· Wider portfolio
o Extensive exploration and drill programme planned at Disko-Nuussuaq Ni-Cu-Co-PGE-Au Project ('Disko') to target multiple nickel and copper geochemical anomalies and Kangerluarsuk zinc-lead-silver project ('Kangerluarsuk') postponed due to COVID-19
o Low-cost fieldwork programme recently undertaken at two new Mineral Exploration Licences known as the Thunderstone Project targeting several high-priority gold and base metal geochemical anomalies
· COVID-19 response and Corporate
o Decisive, appropriate and timely cost saving action taken to protect shareholders' capital, while safeguarding employees, stakeholders and citizens in all Company jurisdictions
o Strong cash management
o Field activities recommenced late summer at Thunderstone with strict COVID-19 protocols in place
o Positive adjustments to 2020 Greenlandic Licence Obligations and Licence extension award
Chairman's Statement
The new year commenced as planned, with the Company continuing the processing of the
With regards to capital expenditure during the period, in addition to accommodation purchases for the
A completed Pre-Feasibility Study ('PFS') on
The Company, together with the Government of
Other progress at
In
Wider Portfolio
The Company continues to drive value through the development of its other large scale, high grade projects in
In
Having refined exact drill site positioning and increased our confidence in Disko, an extensive exploration and drill programme had been planned to commence in Q2 2020. However, COVID-19 put a stop to these plans as well as other work scheduled at our Kangerluarsuk lead-zinc-silver project. This was a disappointing set-back, but we were able to compensate by completing extensive desktop work, reprocessing data and incorporating the latest technical information to further refine drill targets. We are now well positioned to recommence on-site activities as soon as practicable now that new protocols have been put in place and restrictions have eased. We continue dialogue with respect to the appropriate next phases for these assets.
In
We also maintain a portfolio of Finnish assets: the Hammaslahti copper-zinc-gold-silver project; the Enonkoski nickel-copper-cobalt-PGM project; and the Outokumpu copper-gold project. We continue to evaluate the best outcome for maximising shareholder value.
Greenlandic COVID response
Bluejay was impressed with the response of the Government of
Corporate
Following the strategic investment made by Greenland Ventures and Vækstfonden into Bluejay in
Financial
The Company implemented a cost saving programme in
In addition to the accommodation purchases for the
Outlook
Our focus remains on securing an offtake agreement and commencing production at
Given Bluejay is operating within a supportive jurisdiction, has large scale resources, high grades, a proven processing route, low costs, strong economics, institutional and industry backers, a team with a proven track record of delivery, and access to end markets, the outlook for the Company remains highly positive. The Company looks forward to providing further updates, including progress on the imminent exploitation licence decision, during the remainder of the year.
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.
For further information please visit http://www.bluejaymining.com or contact:
|
Bluejay Mining plc |
+44 (0) 20 7907 9326 |
|
Bluejay Mining plc |
+44 (0) 20 7907 9326 |
|
SP Angel Corporate Finance LLP (Nominated Adviser) |
+44 (0) 20 3470 0470 |
|
SP Angel Corporate Finance LLP (Nominated Adviser) |
+44 (0) 20 3470 0470 |
|
Hannam & Partners (Advisory) LLP |
+44 (0) 20 7907 8500 |
|
St Brides Partners Ltd |
+44 (0) 20 7236 1177 |
|
St Brides Partners Ltd |
+44 (0) 20 7236 1177 |
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
|
Notes |
6 months to £ |
6 months to £ |
Continuing operations |
|
|
|
Revenue |
|
- |
1,048 |
Administration expenses |
|
(1,158,204) |
(949,606) |
Other gains/(losses) |
|
19,523 |
(24,718) |
Foreign exchange |
|
(27,730) |
(9,058) |
Operating loss |
|
(1,166,411) |
(982,334) |
Net finance income |
|
4,506 |
5,995 |
Other gains |
|
- |
773,280 |
Loss before taxation |
|
(1,161,905) |
(203,059) |
Income tax expense |
|
- |
- |
Loss for the period |
|
(1,161,905) |
(203,059) |
Other comprehensive income |
|
|
|
Items that may be reclassified to profit or loss |
|
|
|
Currency translation differences |
|
871,308 |
38,518 |
Total comprehensive loss for the period |
|
(290,597) |
(164,541) |
Earnings per share from continuing operations attributable to the equity owners of the parent |
|
|
|
Basic and diluted (pence per share) |
7 |
(0.012) p |
(0.024) p |
CONDENSED CONSOLIDATED BALANCE SHEET
|
Notes |
£ |
£ |
£ |
Non-current assets |
|
|
|
|
Property, plant and equipment |
5 |
2,781,056 |
2,768,423 |
2,984,303 |
Intangible assets |
6 |
24,749,482 |
23,138,507 |
17,353,690 |
|
|
27,530,538 |
25,906,930 |
20,337,993 |
Current assets |
|
|
|
|
Financial assets at fair value through profit or loss |
|
- |
- |
450,778 |
Trade and other receivables |
|
1,789,076 |
1,459,755 |
977,250 |
Cash and cash equivalents |
|
7,014,057 |
10,314,701 |
6,509,390 |
|
|
8,803,133 |
11,774,456 |
7,937,418 |
Total assets |
|
36,333,671 |
37,681,386 |
28,275,411 |
|
|
|
|
|
Non-current liabilities |
|
|
|
|
Lease liabilities |
|
62,220 |
62,220 |
- |
Deferred tax liabilities |
|
496,045 |
496,045 |
496,045 |
|
|
558,265 |
558,265 |
496,045 |
Current liabilities |
|
|
|
|
Lease liabilities |
|
40,710 |
80,814 |
- |
Trade and other payables |
|
225,833 |
1,242,847 |
544,067 |
|
|
266,543 |
1,323,661 |
544,067 |
Total liabilities |
|
824,808 |
1,881,926 |
1,040,112 |
Net assets |
|
35,508,863 |
35,799,460 |
27,235,299 |
Capital and reserves attributable to equity holders of the Company |
|
|
|
|
Share capital |
|
7,484,066 |
7,484,066 |
7,800,733 |
Share premium |
|
55,463,656 |
55,463,656 |
44,150,956 |
Other reserves |
|
(6,733,259) |
(7,604,567) |
(6,776,577) |
Retained losses |
|
(20,705,600) |
(19,543,695) |
(17,939,813) |
Total equity |
|
35,508,863 |
35,799,460 |
27,235,299 |
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
|
|
Share capital £ |
Share premium £ |
Other reserves £ |
Retained losses £ |
Total £ |
Balance as at |
|
7,800,237 |
43,739,139 |
(6,799,892) |
(17,751,957) |
26,987,527 |
Loss for the period |
|
- |
- |
- |
(203,059) |
(203,059) |
Other comprehensive income for the year |
|
- |
- |
- |
- |
- |
Items that may be subsequently reclassified to profit or loss |
|
- |
- |
- |
- |
- |
Currency translation differences |
|
- |
- |
38,518 |
- |
38,518 |
Total comprehensive income for the year |
|
- |
- |
38,518 |
(203,059) |
(164,541) |
Exercise of share options and warrants |
|
496 |
411,817 |
(13,604) |
13,604 |
412,313 |
Expiry of share options |
|
- |
- |
(1,599) |
1,599 |
- |
Total transactions with owners, recognised in equity |
|
496 |
411,817 |
(15,203) |
15,203 |
397,110 |
Balance as at |
|
7,800,733 |
44,150,956 |
(6,766,577) |
(17,939,813) |
27,235,299 |
|
|
|
|
|
|
|
Balance as at |
|
7,484,066 |
55,463,656 |
(7,604,567) |
(19,543,695) |
35,799,460 |
Loss for the period |
|
- |
- |
- |
(1,161,905) |
(1,161,905) |
Other comprehensive income for the year |
|
- |
- |
- |
- |
- |
Items that may be subsequently reclassified to profit or loss |
|
- |
- |
- |
- |
- |
Currency translation differences |
|
- |
- |
871,308 |
- |
871,308 |
Total comprehensive income for the year |
|
- |
- |
871,308 |
(1,161,905) |
(290,597) |
Exercise of share options and warrants |
|
- |
- |
- |
- |
- |
Expiry of share options |
|
- |
- |
- |
- |
- |
Total transactions with owners, recognised in equity |
|
- |
- |
871,308 |
(1,161,905) |
(290,597) |
Balance as at |
|
7,484,066 |
55,463,656 |
(6,733,259) |
(20,705,600) |
35,508,863 |
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
|
|
|
6 months to £ |
6 months to £ |
Cash flows from operating activities |
|
|
|
|
Loss before taxation |
|
|
(1,161,905) |
(203,059) |
Adjustments for: |
|
|
|
|
Gain on financial assets at fair value through profit or loss |
|
|
- |
(344,475) |
Profit on sale of financial assets at Fair value through profit or loss |
|
|
- |
(428,805) |
Depreciation |
|
|
293,953 |
217,665 |
Impairments |
|
|
14,299 |
- |
Other non-cash adjustments |
|
|
4,340 |
- |
Loss on disposal of assets |
|
|
- |
70,436 |
Increase in trade and other receivables |
|
|
121,731 |
(199,232) |
Decrease in trade and other payables |
|
|
(1,461,880) |
(239,770) |
Net cash used in operations |
|
|
(2,189,462) |
(1,127,240) |
Cash flows from investing activities |
|
|
|
|
Purchase of property, plant and equipment |
|
|
(233,713) |
(536,877) |
Proceeds from sale of financial assets at fair value through profit or loss |
|
|
- |
643,369 |
Proceeds from sale of property, plant and equipment |
|
|
- |
100,634 |
Interest received |
|
|
1,896 |
- |
Purchase of intangible assets |
|
|
(841,078) |
(1,864,371) |
Net cash used in investing activities |
|
|
(1,072,895) |
(1,657,245) |
Cash flows from financing activities |
|
|
|
|
Proceeds received from issue of shares |
|
|
- |
412,313 |
Repayment of borrowings |
|
|
(40,104) |
- |
Net cash (used in)/generated from financing activities |
|
|
(40,104) |
412,313 |
Net decrease in cash and cash equivalents |
|
|
(3,302,461) |
(2,372,172) |
Cash and cash equivalents at beginning of period |
|
|
10,314,701 |
8,843,709 |
Exchange gains on cash and cash equivalents |
|
|
1,817 |
37,853 |
Cash and cash equivalents at end of period |
|
|
7,014,057 |
6,509,390 |
NOTES TO THE INTERIM FINANCIAL STATEMENTS
1. General Information
The principal activity of Bluejay Mining plc ('the Company') and its subsidiaries (together 'the Group') is the exploration and development of precious and base metals. The Company's shares are listed on the AIM Market of the London Stock Exchange ('AIM') and the Frankfurt Stock Exchange. The Company is incorporated and domiciled in the UK.
The address of its registered office is 2nd Floor,
2. Basis of Preparation
The condensed 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 within the meaning of the Companies Act 2006. It has 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 European Union.
Statutory financial statements for the period ended
Going concern
The Group is managing the impact of the COVID-19 pandemic on its business and the uncertainty it creates. The Company has taken swift pre-emptive action to ensure the safety of its employees, contractors and supply chain. This includes a full financial and strategic review designed to safeguard and ensure the stability and longevity of Bluejay activities for the benefit for all its stakeholders.
The interim Financial Statements have been prepared on a going concern basis. Although the Group's assets are not generating revenues and an operating loss has been reported, the Directors are of the view that the Group has sufficient funds to meet all committed and contractual expenditure and to maintain good title to the exploration licences.
Risks and uncertainties
The Board continuously assesses and monitors the key risks of the business. The key risks that could affect the Company's medium term performance and the factors that mitigate those risks have not substantially changed from those set out in the Company's 2019 Annual Report and Financial Statements, a copy of which is available on the Company's website: www.bluejaymining.com. The key financial risks are liquidity risk, credit risk, interest rate risk and fair value estimation.
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 at the end of the reporting period. Significant items subject to such estimates are set out in Note 4 of the Company's 2019 Annual Report and Financial Statements. The nature and amounts of such estimates have not changed significantly during the interim period except for the following:
3. Accounting Policies
Except as described below, 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
The International Accounting Standards Board (IASB) issued various amendments and revisions to International Financial Reporting Standards and IFRIC interpretations. The amendments and revisions were applicable for the period ended
The following standards were adopted by the Group during the year:
· IFRS 3 (Amendments) - Business Combinations (effective
· IAS 1 (Amendments) - Presentation of Financial Statements (effective
· IAS 8 - Accounting policies, Changes in Accounting Estimates (effective
(b) New standards, amendments and interpretations in issue but not yet effective or not yet endorsed and not early adopted
Standard |
|
Effective date |
|
|
|
IAS 1 |
Classification of liabilities as current or non-current |
|
Various |
Annual improvements to IFRS Standards 2018-2020 |
|
* Subject to EU endorsement
The Group is evaluating the impact of the new and amended standards above. The Directors believe that these new and amended standards are not expected to have a material impact on the Group's results or shareholders' funds
4. Dividends
No dividend has been declared or paid by the Company during the six months ended
5. Property, plant and equipment
|
Software £ |
Machinery & equipment £ |
Office equipment £ |
Right of use assets £ |
Total £ |
Cost |
|
|
|
|
|
As at |
28,470 |
3,091,550 |
49,289 |
- |
3,169,309 |
Exchange Differences |
- |
(3,478) |
- |
- |
(3,478) |
Additions |
- |
535,046 |
1,821 |
- |
536,867 |
Disposals |
- |
(213,048) |
- |
- |
(213,048) |
As at |
28,470 |
3,410,070 |
51,110 |
- |
3,489,650 |
As at |
28,470 |
3,410,070 |
51,110 |
- |
3,489,650 |
Exchange Differences |
- |
(154,686) |
(274) |
- |
(154,960) |
Additions |
8,623 |
- |
2,095 |
- |
10,718 |
IFRS 16 adjustment |
- |
- |
- |
182,542 |
182,542 |
As at |
37,093 |
3,255,384 |
52,931 |
182,542 |
3,527,950 |
As at |
37,093 |
3,255,384 |
52,931 |
182,542 |
3,527,950 |
Exchange Differences |
- |
92,987 |
- |
- |
92,987 |
Additions |
- |
226,423 |
7,290 |
- |
233,713 |
As at |
37,093 |
3,574,794 |
60,221 |
182,542 |
3,854,650 |
Depreciation |
|
|
|
|
|
As at |
14,476 |
292,894 |
15,848 |
- |
323,218 |
Charge for the year |
4,810 |
206,509 |
6,346 |
- |
217,665 |
Disposals |
- |
(39,231) |
- |
- |
(39,231) |
Exchange differences |
- |
3,695 |
- |
- |
3,695 |
As at |
19,286 |
463,867 |
22,194 |
- |
505,347 |
As at |
19,286 |
463,867 |
22,194 |
- |
505,347 |
Charge for the year |
5,986 |
229,978 |
6,285 |
- |
242,249 |
IFRS 16 adjustment |
- |
- |
- |
40,565 |
40,565 |
Exchange differences |
- |
(28,456) |
(178) |
- |
(28,634) |
As at |
25,272 |
665,389 |
28,301 |
40,565 |
759,527 |
As at |
25,272 |
665,389 |
28,301 |
40,565 |
759,527 |
Charge for the year |
6,091 |
241,424 |
5,873 |
40,565 |
293,953 |
Exchange differences |
- |
20,114 |
- |
|
20,114 |
As at |
31,363 |
926,927 |
34,174 |
81,130 |
1,073,594 |
Net book value as at |
9,184 |
2,946,203 |
28,916 |
- |
2,984,303 |
Net book value as at |
11,821 |
2,589,995 |
24,630 |
141,977 |
2,768,423 |
Net book value as at |
5,730 |
2,647,867 |
26,047 |
101,412 |
2,781,056 |
6. Intangible Assets
Intangible assets comprise exploration and evaluation costs and goodwill. Exploration and evaluation costs comprise acquired and internally generated assets.
Cost and Net Book Value |
|
Exploration & evaluation assets £ |
Balance as at |
|
15,478,246 |
Additions |
|
1,864,371 |
Exchange rate movements |
|
11,073 |
As at |
|
17,353,690 |
Balance as at |
|
17,353,690 |
Additions |
|
5,976,649 |
Exchange rate movements |
|
(191,832) |
As at |
|
23,138,507 |
Balance as at |
|
23,138,507 |
Additions |
|
841,078 |
Exchange rate movements |
|
769,897 |
As at |
|
24,749,482 |
7. Earnings per Share
The calculation of earnings per share is based on a retained loss of £1,161,905 for the six months ended
No diluted earnings per share is presented for the six months ended
8. Other Receivables
The Directors are in the process of appealing an assessment made by HMRC which relates to the Company's ability to claim input VAT because, in the view of HMRC, the Company does not technically constitute a business for the purposes of VAT and is not eligible to make such claims in connection with services it supplied to the Company's subsidiaries. The initial assessment raised by HMRC is for an amount of
The Directors strongly refute the view of HMRC that the Company does not constitute a business for VAT purposes. The case is proceeding to Tribunal and resolution is not expected any earlier than Q1 2021. The Company has engaged professional services of legal counsel who will be representing it before the Tribunal. Counsel confirms the Company has a strong case.
Accordingly, the Directors believe that the amount of
9. Events after the Reporting Date
On
On
10. Approval of interim financial statements
The Condensed interim financial statements were approved by the Board of Directors on 29 September 2020.
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