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MetalNRG PLC - Interim Results

RNS Number : 7465X
MetalNRG PLC
02 September 2020
 

2 September 2020

 

 

THIS ANNOUNCEMENT AND THE INFORMATION CONTAINED HEREIN IS RESTRICTED AND NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES OR ANY OTHER JURISDICTION IN WHICH THE RELEASE, PUBLICATION OR DISTRIBUTION WOULD BE UNLAWFUL.

 

MetalNRG plc

 ("MetalNRG" or "the Company")

 

Interim Results

 

MetalNRG plc (LSE:MNRG), the natural resource investing and exploration company, announces its results for the six months period ended 30 June 2020.

 

Operational Highlights

Key operational milestones achieved during the period:

 

The focus at the beginning of the financial year was very much on developing the opportunity within our Gold asset in Arizona, Goldridge. We completed two campaigns; one focused on measuring the gold content left behind in the waste dump at level 6 and the second campaign to establish the ore left behind in the underground pillars where we had some extremely encouraging results. Our priority focus has been the last mined face on Level 6 at the Gold Ridge Mine. This sample returned 30.4 grams/tonne (g/t) gold (Au) and 69 g/t silver. The face shows the exposed vein with a width of 0.6 metres on a mined face of 1.3 metres. The vein consists of quartz with massive sulphide mineralisation.

 

These results affirm our belief that the Gold Ridge Project is a unique exploration and production opportunity with demonstrable high-grade mineralisation and the potential for early avenues to revenue generative processing and a larger scale exploration opportunity. As activity at Goldridge has been impacted by the Covid-19 pandemic, we have had to take a temporary step back from further work on the ground but we remain keen to develop the mine as soon as current restrictions are eased as we see a substantial opportunity to turn Goldridge into a cash positive producing asset within the next 12 to 18 months.

 

We are continuously assessing the situation in Arizona and will seek to mobilise again as soon as it is safe to do so.

 

During the year we also entered into an exclusivity agreement to acquire an Oil & Gas asset in Romania. During the due diligence progress the price of oil changed dramatically and as a result we changed the terms of the agreement which the vendor is still considering. We then entered a second exclusivity agreement for the acquisition of a UK based portfolio of onshore oil and gas licences, of which one is currently in production. The due diligence is being finalised and we anticipate closing the transaction by the end of September 2020 when additional announcements will be made.

 

Corporate Development

The Company will continue to seek additional projects that meet its set investment criteria. The intention is specifically to seek opportunities where we can deliver early positive cash flows from an asset and, where the cash generated from the operations allows us, explore and develop each particular project further. We expect announcements in the very near future on further developments.

 

During the year we welcomed Pierpaolo Rocco to our board; he brings with him a wealth of experience and expertise in Oil and Gas and he is leading our efforts in this sector.

 

 

Financial Review

MetalNRG reported an unaudited operating loss for the six months period ended 30 June 2020 of £386,304 (six months period to 31 August 2019: an unaudited operating loss of £260,228). Basic and diluted loss per share for the period was 0.11p and 0.08p respectively (six months period to 31 August 2019: Basic loss per share was 0.12p and diluted loss per share was 0.10p).

 

 

Outlook

A number of projects have been evaluated and good progress has been made to date. We expect further announcements will be made to update the market on any concrete achievements.

 

Responsibility Statement

We confirm that to the best of our knowledge:

·      The interim financial statements have been prepared in accordance with International Accounting Standard 34, Interim Financial Reporting, as adopted by the EU;

·      The interim financial statements give a true and fair view of the assets, liabilities, financial position and loss of the Group;

·      The interim report includes a fair review of the information required by DTR 4.2.7R of the Disclosure and Transparency Rules, being an indication of important events that have occurred during the first six months of the financial year and their impact on the interim financial information, and a description of the principal risks and uncertainties for the remaining six months of the year; and

·      The interim financial information includes a fair review of the information required by DTR 4.2.8R of the Disclosure and Transparency Rules, being the information required on related party transactions.

 

 

 

 

Enquiries:

 

MetalNRG plc

Rolf Gerritsen (Chief Executive Officer)

Tel: +44 (0) 20 7796 9060

 

Joint Broker

Peterhouse Capital Limited

Guy Miller/Mark Anwyl

Tel: +44 (0) 20 7469 0930

 

Corporate Broker

SI Capital Limited

Nick Emerson

Tel:  +44 (0) 1483 413 500

 

 

Notes for Editors:

MetalNRG plc (LSE:MNRG) is a natural resource investing and exploration company whose securities are listed on the main market of London Stock Exchange plc

The Company's primary strategy is to focus on seeking potential investments in precious and strategic metals through the application of disciplined and structured exploration and analysis.  

 

The Company will update the market on developments as and when appropriate.

 

 

 

 

Consolidated Income Statement

 




6 months to

 30 June 2020


6 months to

 31 August 2019


10-months period to

 31 December 2019




Unaudited

£


Unaudited

£


Audited

£

Revenue



-


-


-









Administrative expenses



(405,647)


(179,859)


(594,140)

Other operating income



19,343


16,431


9,285

IPO expenses



-


(96,800)


-









Operating loss

 



(386,304)


(260,228)


(584,855)

Finance income



-


-


-









Loss on ordinary activities before taxation

 



(386,304)


(260,228)


(584,855)

Tax on loss on ordinary activities

 



-


-


-

Loss for the financial period attributable to equity holders



(386,304)


(260,228)


(584,855)









Earnings per share - see note 3

Basic

Diluted



 

(0.11) pence

(0.08) pence

 

 

 

(0.12) pence

(0.10) pence


 

(0.22) pence

(0.15) pence

 

 

Consolidated Statement of Comprehensive Income

 




6 months to

 30 June 2020


6 months to

 31 August 2019


10-months period to

 31 December 2019




Unaudited

£


Unaudited

£


Audited

£

Loss after tax



(386,304)


(260,228)


(584,855)

Items that may subsequently be reclassified to profit or loss:








-     Foreign exchange movements



(3,675)


-


(2,067)









Total comprehensive loss attributable to equity holders of the parent company



(389,979)


(260,228)


(586,922)











Consolidated Statement of Financial Position

 




6 months to 30 June 2020



6 months to

 31 August 2019

 10-months period to 31 December 2019




Unaudited

£



Unaudited

£

Audited

£

 

Assets








Non-current assets

Intangible fixed assets

Investments

Available for sale assets

 


 

 

 

 

669,198

166,808

-

 


 

641,295

182,764

52,083

 


 

666,291

131,667

83,333

 

Total assets



836,006


876,142


881,291









Current assets

Trade and other receivables

Cash and cash equivalents

 


 

 

 

 

63,122

111,699


 

206,141

70,959

 


 

85,290

139,039

 

Total current assets



174,821


277,100


224,329

 

Liabilities








Current liabilities








Trade and other payables

 



(480,065)


(192,562)


(214,879)

Total liabilities

 



(480,065)


(192,562)


(214,879)

Net assets

 



530,762


960,680


890,741









Equity

Share capital

Share premium

Retained losses

Foreign currency reserve

 



 

273,301

2,443,784

 (2,181,708)

(4,615)

 


 

266,847

2,167,311

 (1,470,778)

(2,700)

 

 

 

 

272,801

2,414,284

(1,795,404)

(940)

 

Total equity

 



530,762


960,680


890,741

 



Consolidated Statement of Cash Flows

 




6 months to

 30 June 2020


6 months to

 31 August 2019


10-months Period to 31 December 2019




Unaudited

£


Unaudited

£


Audited

£

 

Cash flow from operating activities



 

 





Operating loss



(386,304)


(260,228)


(584,855)

(profit)/loss on sale of investment



(19,134)


16,357


16,357

Shares received in lieu of fees



-


79,730


-

Impairment of investments



-


-


44,847

Increase/(decrease) in payables



160,186


14,089


36,407

decrease/(increase) in receivables



22,167


(19,318)


105,361

Net cash outflow from operations



(223,085)


(169,370)


(381,883)

 

Cash flows from investing activities








Payments for intangible assets



-


(20,144)


(45,140)

Proceeds from sale of investment


102,467


39,360


39,360

Purchase of investments


(38,047)


(13,845)


(38,846)

Net cash flows from investing activities


64,420


5,371


(44,626)

 

Cash flows from financing activities







Proceeds from issue of shares and warrants



 

30,000


 

210,790


 

568,432

Cost of shares issued


-


-


(24,985)

Proceeds from Convertible Loan Notes


105,000


-


-

Net cash flows from financing activities


135,000


210,790


543,447

 

Net (decrease)/increase in cash and cash equivalents

Cash and cash equivalents at the beginning of period


 

(23,665)

 

139,039

 


 

46,791

 

24,168

 


 

116,938

 

24,168

 

Effect of exchange rate changes on cash and cash equivalents


(3,675)


-


(2,067)

Cash and cash equivalents at end of period


111,699


70,959


139,039








 

 



Consolidated Statement of Changes in Equity

 

 

 

Share capital

Share premium

Retained earnings

Foreign currency reserve

Total



£

£

£

£

£

At 31 August 2018

 

253,085

1,330,908

(1,071,222)

-

512,771

 

Loss for the period

 

-

-

(139,328)

-

(139,328)

 

Translation differences

 

-

-

-

1,127

1,127

 

Total comprehensive income

 

-

-

(139,328)

1,127

(138,201)

 

Share capital issued

 

4,029

537,616

-

-

541,645

 

Total contributions by and distributions to owners of the Company

 

4,029

537,616

-

-

541,645

 

At 28 February 2019

 

257,114

1,886,524

(1,210,550)

1,127

934,215

 

Loss for the period

 

-

-

(260,228)

-

(260,228)

 

Translation differences

 

-

-

-

(3,827)

(3,827)

 

Total comprehensive income

 

-

-

(260,228)

(3,827)

(264,055)

 

Share capital issued

 

9,733

280,787

-

-

290,520

 

Total contributions by and distributions to owners of the Company

 

9,733

280,787

-

-

290,520

 

As at 31 August 2019

 

266,847

2,167,311

(1,470,778)

(2,700)

960,680

 

 

Loss for the period

 

 

-

 

-

 

(324,627)

 

-

 

(324,627)

 

Translation differences

 

-

-

-

1,760

1,760

 

Total comprehensive income

 

-

-

(324,627)

1,760

(322,867)

 

Share capital issued


5,954

246,973

-

-

252,927

 

Total contributions by and distributions to owners of the Company


5,954

246,973

-

-

252,927

 

As at 31 December 2019

 

272,801

2,414,284

(1,795,405)

(940)

890,740

 

Loss for the period

 

-

-

(386,304)

-

(386,304)

 

Translation differences

 

-

-

-

(3,675)

(3,675)

 

Total comprehensive income

 

-

-

(386,304)

(3,675)

(389,979)

 

Share capital issued

 

500

29,500

-

-

30,000

 

Total contributions by and distributions to owners of the Company

 

500

29,500

-

-

30,000

 

As at 30 June 2020

 

273,301

2,443,784

(2,181,708)

(4,615)

530,762

 

 

Half-yearly report notes

 

1. Half-yearly report

This interim report was approved by the Board of Directors on 1 September 2020.

The information relating to the six months periods to 30 June 2020 and 31 August 2019 are unaudited.

The information relating to the 10-months period to 31 December 2019 is extracted from the audited financial statements of the Company which have been filed at Companies House and on which the auditors issued an unqualified audit report. The condensed interim financial statements have been reviewed by the Company's auditor.

2. Basis of accounting

The interim financial statements have been prepared using accounting policies and practices that are consistent with those adopted in the statutory financial statements for the 10-months period ended 31 December 2019, although the information does not constitute statutory financial statements within the meaning of the Companies Act 2006. The interim financial statements have been prepared under the historical cost convention.

These interim financial statements are prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the European Union and the Disclosure and Transparency Rules of the UK Financial Conduct Authority.

This interim report does not include all the notes of the type normally included in an annual financial report. Accordingly, this interim report should be read in conjunction with the annual report for the year ended 31 December 2019, which have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union

The Company will report again for the full year to 31 December 2020.

Going concern

The Company's day to day financing is from its available cash resources.

The Company is confident of raising funds to enable it to continue to develop its targeted investments and exploration campaigns across its key projects over the next 12-18 months and the Directors are confident that adequate funding can be raised as required to meet the Company's current and future liabilities.

For the reasons outlined above, the Directors are satisfied that the Company will be able to meet its current and future liabilities, and continue trading, for the foreseeable future and, in any event, for a period of not less than twelve months from the date of approving this interim report. The preparation of these interim financial statements on a going concern basis is therefore considered to remain appropriate.

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 the Company's 2019 Annual Report and Financial Statements. The nature and amounts of such estimates have not changed significantly during the interim period.

Intangible assets

Exploration and development costs

All costs associated with mineral exploration and investments are capitalised on a project-by-project basis, pending determination of the feasibility of the project. Costs incurred include appropriate technical and administrative expenses but not general overheads. If an exploration project is successful, the related expenditures will be transferred to mining assets and amortised over the estimated life of economically recoverable reserves on a unit of production basis.

Interim report notes, continued

 

2. Basis of accounting, continued

Intangible assets

Exploration and development costs

Where a licence is relinquished or a project abandoned, the related costs are written off in the period in which the event occurs. Where the Group maintains an interest in a project, but the value of the project is considered to be impaired, a provision against the relevant capitalised costs will be raised.

The recoverability of all exploration and development costs is dependent upon the discovery of economically recoverable reserves, the ability of the Group to obtain necessary financing to complete the development of reserves and future profitable production or proceeds from the disposition thereof.

3. Earnings per share




6 months to

 30 June 2020


6 months to

 31 August 2019



10-months period to

 31 December 2019




Unaudited

£


Unaudited

£



Audited

£










These have been calculated on a loss of:



(386,604)


(260,228)



(584,855)  

 

The basic weighted average number of shares used was:

 

The diluted weighted average number of shares used was:



 

359,990,020

 

 

466,523,346


 

225,839,993

 

 

263,289,993



 

260,741,282

 

 

388,024,608

 

Basic loss per share:



 

(0.11) pence


 

(0.12) pence



 

(0.22) pence

Diluted loss per share:



(0.08) pence


(0.10) pence



(0.15) pence

 

4. Events after the reporting period

There were no reportable events after the reporting period other than those highlighted in the 'Financial Review'. 

 

The Condensed interim financial statements were approved by the Board of Directors on 1 September 2020.

 

By order of the Board

 

 

 

Rolf Gerritsen

Director

 

The information set out in this announcement is provided in accordance with the requirements of Article 19(3) of the EU Market Abuse Regulation No 596/2014.

The release of this information was arranged by Rolf Gerritsen, Chief Executive Officer.

 

 

Copies of this interim report are available free of charge by application in writing to the Company Secretary at the Company's registered office: 1 Ely Place, London, EC1N 6RY, or by email to [email protected]. The report will also be made available on the Company's website: www.metalnrg.com.

 

End

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