08:00 Mon 06 Apr 2020
Erris Resources PLC - Final Results
("Erris Resources" or the "Company")
Final Results
The Company's Annual Report and Financial Statements for the year ended
Overview
· Cautious approach that saw the Company carefully husband its resources whilst actively seeking new opportunities
·
o High-grade extensive mineralisation confirmed, and positive preliminary metallurgical test results received
o Seeking a partner to advance the project
·
o Encouraging results from historic data review combined with new regional aeromagnetic data and soil results
o Marketing the project to major companies
·
o Centerra spent
o Targets for gold exploration in
o Seven permits in
o Centerra terminated strategic alliance in
·
o Granted several exploration licences in 2019 including the Gautelis permits in northern
o Ongoing target evaluation identified Varden where high-grade zinc was sampled historically, and limited drilling encountered sporadic low grades of zinc and gold mineralisation
o Post period end, in
·
o Joint-venture agreed in December with option to acquire 80% of the Loch Tay gold and associated base metals project in
o Highly prospective project, which lies within the Grampian Gold Belt that hosts several gold deposits
o Identified two priority target areas where prospecting and mapping followed by soil sampling is planned to outline future drill targets and identify other gold targets
· Board and Management changes agreed to maximise financial and personnel resources
· Disciplined approach to expenditure - well funded for the remainder of 2020 with a
· Currently impacted by the Covid-19 pandemic and all necessary steps taken to protect the well-being of staff, stakeholders and local communities
Chairman's Statement
The global backdrop for the resources industry was challenging in 2019, necessitating a cautious approach by Erris Resources that saw us carefully husband our resources whilst actively seeking new opportunities. Accordingly, new exploration ground was staked in
Erris Resources holds five prospecting licences ("PLs") at its 100% owned brownfield
In
Close-spaced soil sampling confirmed the presence of strong anomalies over interpreted structures visible in the airborne geophysics data close to the Ox Mountains Fault. Results for 527 closely spaced samples were released in
Also in
The results for all work to date at Abbeytown have been positive and a high level of success has been achieved with drilling. Further drilling is required to outline the potential of new targets south of the mine and near the Ox Mountains Fault. The Company has been seeking a partner to advance the Abbeytown project and will continue to do so in 2020. Difficult market conditions in the zinc sector has impacted interest in zinc projects but, as there are no immediate expenditure commitments required for Abbeytown, the value of the project can be preserved until interest recovers.
Erris Resources was granted 18 PLs in
While the results of the historic data review combined with new regional aeromagnetic data and soil results are very encouraging, the targets are likely at depths of greater than 300-400m and drill testing such early stage targets would be considered risky for Erris Resources in the current market. We have been marketing the project to major companies and will continue to do so. Boliden, in joint venture with Minco Exploration, recently carried out a seismic survey on adjacent contiguous PLs to the north which represents a major investment while a new major entrant into
Erris Resources continued its strategic alliance with Centerra Gold ('Centerra') during 2019 with Centerra committing to spend
In
Following four years of identifying and testing targets, Centerra announced in
Erris Resources is grateful for the consulting and exploration partnership with Centerra over the past four years, which from our experience is a typical duration for such joint ventures. While we are disappointed that it has ended, we will continue to pursue this type of partnership with other mining partners having demonstrated our consulting expertise in delivering cost-effective exploration.
Erris Resources applied for and was granted a number of exploration licences in
Results from initial samples taken at the
On
The project area is highly prospective and lies within the Grampian Gold Belt, which hosts a number of gold deposits including Curraghinalt in
The team has already identified two priority target areas, Lead Trial and
Board and Corporate
With effect from
Financial Overview
The Company maintains a disciplined approach to expenditure and as such is well funded for the remainder of 2020 with a
Outlook
We are fully aware that the share price performance of the Company since IPO has been challenging. Much of this has been beyond the Company's control linked to macro events and a generally weak market for junior exploration companies. However, with our strong cash position of around
Erris is also currently impacted, like all companies, by the Covid-19 pandemic and has taken all necessary steps to protect the well-being of its staff, stakeholders and local communities. There has been no impact on Abbeytown, as no new work was planned for the coming months. We do not yet know the impact on our projects in
I would like to thank our shareholders for their continued support, including industry major, Osisko Gold Royalties, and I look forward to providing further updates on our progress.
Non-Executive Chairman
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED
|
31 December |
|
31 December |
|
|||||||
|
2019 |
|
2018 |
|
|||||||
Continuing operations |
Notes |
|
€ |
|
€ |
|
|||||
|
|||||||||||
Revenue |
4 |
|
17,527 |
|
165,216 |
|
|||||
Cost of sales |
|
(104,102) |
|
(129,569) |
|||||||
|
|||||||||||
|
|
|
|
|
|||||||
|
|||||||||||
Gross (loss)/profit |
|
(86,575) |
|
35,647 |
|
||||||
|
|||||||||||
Exploration projects impairment |
|
- |
|
(317,396) |
|||||||
Administrative expenses |
|
(475,592) |
|
(696,083) |
|||||||
Share based payments charge |
23 |
|
- |
|
(124,901) |
||||||
|
|||||||||||
|
|
|
|
|
|||||||
|
|||||||||||
Operating loss |
6 |
|
(562,167) |
|
(1,102,733) |
||||||
|
|||||||||||
Finance income |
9 |
|
- |
|
1,289 |
|
|||||
|
|||||||||||
|
|
|
|
|
|||||||
|
|||||||||||
Loss before taxation |
|
(562,167) |
|
(1,101,444) |
|||||||
|
|||||||||||
Tax on loss |
10 |
|
30,648 |
|
- |
|
|||||
|
|||||||||||
|
|
|
|
|
|||||||
|
|||||||||||
Loss for the financial year |
26 |
|
(531,519) |
|
(1,101,444) |
||||||
|
|||||||||||
Other comprehensive income |
|
- |
|
- |
|
||||||
|
|||||||||||
|
|
|
|
|
|||||||
|
|||||||||||
Total comprehensive loss for the year |
|
(531,519) |
|
(1,101,444) |
|||||||
|
|||||||||||
|
|
|
|
|
|||||||
|
|||||||||||
Earnings per share from continuing operations attributable to the owners of the parent company |
11 |
|
|||||||||
Basic (cents per share) |
|
(1.71) |
|
(3.54) |
|||||||
Diluted (cents per share) |
|
(1.71) |
|
(3.54) |
|||||||
|
|||||||||||
Total loss and comprehensive loss for the year is attributable to the owners of the parent company. |
|
||||||||||
GROUP STATEMENT OF FINANCIAL POSITION
AS AT
|
|
|
|
|
|||||||
|
Notes |
|
€ |
|
€ |
|
|||||
|
|||||||||||
Non-current assets |
|
||||||||||
Intangible assets |
12 |
|
2,002,334 |
|
1,745,118 |
|
|||||
|
|||||||||||
|
|
|
|
|
|||||||
|
|||||||||||
Current assets |
|
||||||||||
Trade and other receivables |
17 |
|
36,030 |
|
59,334 |
|
|||||
Cash and cash equivalents |
|
1,497,277 |
|
2,366,893 |
|
||||||
|
|||||||||||
|
|
|
|
|
|||||||
|
|||||||||||
|
1,533,307 |
|
2,426,227 |
|
|||||||
|
|||||||||||
|
|
|
|
|
|||||||
|
|||||||||||
Total assets |
|
3,535,641 |
|
4,171,345 |
|
||||||
|
|||||||||||
|
|
|
|
|
|||||||
|
|||||||||||
Current liabilities |
|
||||||||||
|
|||||||||||
Current tax liabilities |
|
- |
|
30,648 |
|
||||||
Trade and other payables |
19 |
|
43,130 |
|
112,873 |
|
|||||
Amounts owed to |
20 |
|
- |
|
3,794 |
|
|||||
|
|||||||||||
|
|
|
|
|
|||||||
|
|||||||||||
|
43,130 |
|
147,315 |
|
|||||||
|
|||||||||||
|
|
|
|
|
|||||||
|
|||||||||||
Net current assets |
1,490,177 |
|
2,278,912 |
|
|||||||
|
|||||||||||
|
|
|
|
|
|||||||
|
|||||||||||
Total liabilities |
|
43,130 |
|
147,315 |
|
||||||
|
|||||||||||
|
|
|
|
|
|||||||
|
|||||||||||
Net assets |
|
3,492,511 |
|
4,024,030 |
|
||||||
|
|||||||||||
|
|
|
|
|
|||||||
|
|||||||||||
Equity |
|
||||||||||
Share capital |
24 |
|
351,133 |
|
351,133 |
|
|||||
Share premium |
|
|
4,151,045 |
|
4,151,045 |
|
|||||
Other reserves |
25 |
|
811,077 |
|
827,376 |
|
|||||
Retained earnings |
26 |
|
(1,820,744) |
|
(1,305,524) |
||||||
|
|||||||||||
|
|
|
|
|
|||||||
|
|||||||||||
Total equity |
|
3,492,511 |
|
4,024,030 |
|
||||||
|
|||||||||||
|
|
|
|
|
|||||||
|
|||||||||||
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED
|
Share capital |
Share premium account |
Other reserves |
Retained earnings |
Total |
|
|||||||||
|
Notes |
€ |
€ |
€ |
€ |
€ |
|
||||||||
|
|||||||||||||||
Balance at |
|
351,133 |
4,151,045 |
759,687 |
|
(261,292) |
5,000,573 |
|
|||||||
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|||||||||||||||
Year ended |
|
||||||||||||||
Loss and total comprehensive income for the year |
|
- |
- |
- |
|
(1,101,444) |
(1,101,444) |
||||||||
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|||||||||||||||
Total comprehensive income for the year |
- |
- |
- |
|
(1,101,444) |
(1,101,444) |
|||||||||
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|||||||||||||||
Credit to equity for equity settled share-based payments |
23 |
- |
- |
124,901 |
- |
124,901 |
|
||||||||
Transfer of lapsed share options |
|
- |
- |
|
(57,212) |
57,212 |
- |
|
|||||||
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|||||||||||||||
Total transactions with owners recognised directly in equity |
|
- |
- |
67,689 |
57,212 |
124,901 |
|
||||||||
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|||||||||||||||
Balance at |
351,133 |
4,151,045 |
827,376 |
|
(1,305,524) |
4,024,030 |
|
||||||||
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|||||||||||||||
Year ended |
|
||||||||||||||
Loss and total comprehensive income for the year |
|
- |
- |
- |
|
(531,519) |
(531,519) |
||||||||
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|||||||||||||||
Total comprehensive income for the year |
- |
- |
- |
|
(531,519) |
(531,519) |
|||||||||
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|||||||||||||||
Transfer of lapsed share options |
|
- |
- |
|
(16,299) |
16,299 |
- |
|
|||||||
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|||||||||||||||
Total transactions with owners recognised directly in equity |
- |
- |
|
(16,299) |
16,299 |
- |
|
||||||||
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|||||||||||||||
Balance at |
351,133 |
4,151,045 |
811,077 |
|
(1,820,744) |
3,492,511 |
|
||||||||
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED
|
Year ended |
|
Year ended |
|
||||||||||
|
Notes |
€ |
€ |
€ |
€ |
|
||||||||
|
||||||||||||||
Cash flows from operating activities |
|
|||||||||||||
|
||||||||||||||
Cash used in operations |
31 |
|
(607,875) |
|
(704,956) |
|||||||||
|
||||||||||||||
|
|
|
|
|
||||||||||
|
||||||||||||||
Net cash outflow from operating activities |
|
(607,875) |
|
(704,956) |
||||||||||
|
||||||||||||||
Cash flows from investing activities |
|
|||||||||||||
Exploration expenditure |
|
(257,214) |
|
(1,014,729) |
|
|||||||||
Exploration expenditure utilising funds from Strategic Alliance Agreement |
|
(222,154) |
|
(1,493,877) |
|
|||||||||
Interest received |
- |
|
1,289 |
|
||||||||||
|
||||||||||||||
|
|
|
|
|
||||||||||
|
||||||||||||||
Net cash used in investing activities |
|
(479,368) |
|
(2,507,317) |
||||||||||
|
||||||||||||||
Cash flows from financing activities |
|
|||||||||||||
Proceeds from issue of shares |
- |
|
56,319 |
|
||||||||||
Funds received from Strategic Alliance Agreements |
217,627 |
|
1,432,704 |
|
||||||||||
|
||||||||||||||
|
|
|
|
|
||||||||||
|
||||||||||||||
Net cash generated from financing activities |
|
217,627 |
|
1,489,023 |
|
|||||||||
|
||||||||||||||
|
|
|
|
|
||||||||||
|
||||||||||||||
Net decrease in cash and cash equivalents |
|
(869,616) |
|
(1,723,250) |
||||||||||
|
||||||||||||||
Cash and cash equivalents at beginning of year |
|
2,366,893 |
|
4,090,143 |
|
|||||||||
|
||||||||||||||
|
|
|
|
|
||||||||||
|
||||||||||||||
Cash and cash equivalents at end of year |
|
1,497,277 |
|
2,366,893 |
|
|||||||||
|
||||||||||||||
|
|
|
|
|
||||||||||
Notes to the financial statements can be found in the Company's Annual Report and Financial Statements on the Company's website at https://www.errisresources.com/annual-interim-reports.
*ENDS*
For further information visit www.errisresources.com or contact:
|
|
+353 (0) 94 902 8481 |
|
|
+44 (0) 20 3328 5656 |
|
|
+44 (0) 20 7186 9952 |
|
|
+44 (0) 20 3657 0050 |
|
|
+44 (0) 20 7236 1177 |
Notes
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