Cloudbreak Discovery PLC (LSE:CDL, OTC:CDBDF) has reported results for the six months ended 31 December 2022, a period which saw the company refocus into energy royalty acquisitions, with its mineral activities transferred to wholly-owned subsidiary, Cloudbreak Exploration Inc.
In the results statement, Kyler Hardy, CEO and president of Cloudbreak Discovery, commented: “It has been a transformational period for the company. November’s corporate update saw the announcement of an exciting restructuring plan that will separate out the energy and mineral facets of the company into distinct areas that Cloudbreak can direct its capital and expertise into.
“The continuing prosperity of our energy royalty projects in Texas – grounded in a robust and favourable natural resources outlook – will enable Cloudbreak to broaden its scope to international interests, establishing a more diverse asset base that can further drive shareholder value.”
With the repositioning, the expertise of the business was enhanced, with Rory Kutluoglu taking up the role of chief executive officer of Cloudbreak Exploration, and Cam Bartsch being appointed as vice president of Exploration.
The company raised £585,625 during its first half to support the development of its existing portfolio and the acquisition of suitable additions, including lithium assets and bauxite projects globally.
It entered into an agreement with Legado Oil & Gas Limited providing US$1.5mln in development capital for the Butte Strawn Energy Project, which is deployed as a convertible debenture and, at Cloudbreak's discretion, can be converted into a 6% Overriding Royalty Interest.
The company also received the first royalty payment from the Masten Unit Energy Project, after entering into an agreement with G2 Energy Corp. in May 2022.
Cloudbreak completed a surface programme at Foggy Mountain, confirming three of the four historic mineral occurrences, and an airborne magnetic survey on Northern Treasure, identifying several prominent structures.
Meanwhile, Cloudbreak subsidiary Kudu Resources Limited has been proactively working towards the acquisition of the Somalu Bauxite exploration license in Guinea.
Looking ahead, Hardy said: "The company forecasts that the upcoming year will see the energy royalty side of the business come to the fore, delivering value and cashflow for our shareholders. The global demand for new oil and gas sources – oil providing a secure energy source, and gas serving as a transition fuel – places emphasis on the value of Cloudbreak’s realigned operational focus. As the company furthers the scope of its energy royalty acquisitions, it can readily position itself as an attractive prospect to investors.
"We look forward to receiving further royalty payments from our current projects and entering into new agreements with auspicious oil and gas plays, drawing on the expertise of our team to deliver for the company’s valued shareholders," he concluded.
The first half financials showed a fairly unchanged loss before income tax of £2.858mln (2012: £2.804mln), while the loss per share was reduced to 0.01p (2021: 0.72p).