TIDMBEM
RNS Number : 3135I
Beowulf Mining PLC
30 August 2016
30 August 2016
Beowulf Mining plc
("Beowulf" or the "Company")
Unaudited Interim Statement and Management Update for the Period
Ended 30 June 2016
Beowulf (AIM: BEM; Aktietorget: BEO), the mineral exploration
and development company, focused on the Kallak magnetite iron ore
project and the Åtvidaberg polymetallic exploration licence in
Sweden, and its graphite portfolio in Finland, announces its
unaudited condensed consolidated financial results for the six
months ended 30 June 2016 and provides a management update.
The unaudited financial results for nine months ending 30
September 2016 and the next management update will be released on
or before Wednesday 30 November 2016.
Overview of Activities in the Quarter
-- Mr Christopher Davies was appointed to the Board as
Non-Executive Director in April 2016. Chris is an
exploration/economic geologist with more than 30 years' experience
in the mining industry, and has significant knowledge of graphite
and base metals, a particular skill set which is complementary to
Beowulf's existing team.
-- On 18 April 2016, the Company's 100 per cent owned
subsidiary, Jokkmokk Iron Mines AB ("JIMAB"), responded to a letter
from The Government of Sweden, requesting our opinion on the
judgement of the Supreme Administrative Court of Sweden ("SAC"),
dated 22 February 2016, regarding Tasman Metal's Norra Kärr project
(Case 2047-14), and how it relates to the Company's application for
an Exploitation Concession at Kallak North.
In response, JIMAB stated that the Environmental Impact
Assessment ("EIA") for its application has been completed in
accordance with the recent SAC judgement and suggested to the
Government that the Kallak North application should be returned to
the Mining Inspectorate, such that a review of the EIA in the
context of the SAC judgement can be made.
-- The Mining Inspectorate of Sweden awarded the Company an
Exploration Licence for Åtvidaberg nr 1, covering 225 square
kilometres ("km(2) ") and located in the Bergslagen area, southern
Sweden. The licence is valid for three years from the 30 May
2016.
-- Loss after tax attributable to owners of the parent for the
six months ended 30 June 2016 is GBP333,052 and in line with the
corresponding period last year (2015: loss GBP330,276).
-- Cash and cash equivalents at 30 June 2016 at GBP1,231,594,
are GBP1,058,639 above the corresponding period last year and
GBP878,680 above the level at 31 December 2015.
Post Period End
-- On 1 July 2016, the Company announced that The Government of
Sweden had asked the Mining Inspectorate of Sweden to review the
Company's application for an Exploitation Concession for Kallak
North in the context of the SAC judgement in the case of the Norra
K rr project.
-- Kurt Budge, Chief Executive Officer ("CEO") of Beowulf,
attended Almedalen, an annual event in Sweden and was able to meet
with representatives of the Swedish mining industry, unions,
politicians, local government representatives from mining areas in
Sweden and regulators. During these meetings, the CEO was able to
present Beowulf, the Kallak project and our Åtvidaberg exploration
licence to key influencers and stakeholders.
Almedalen provided the Company with an opportunity to further
demonstrate its commitment to Sweden.
-- On 2 August 2016, the Company provided an exploration update
for its Haapamäki and Piippumäki graphite projects in Finland, and
the discovery of an additional prospective area in the eastern part
of Haapamäki, named Pitkäjärvi.
-- Beowulf has completed an initial assessment of the Company's
Åtvidaberg Volcanogenic Massive Sulphide ("VMS")
lead-zinc-copper-silver exploration licence, located in the
Bergslagen area in southern Sweden.
-- On 4 August, the Company provided an update on the Kallak North Exploitation Concession.
In all discussions, the Company has stated that it believed it
is in the best interests of its stakeholders in Sweden, and its
Swedish and non-Swedish shareholders, that the Company's
application be further reviewed by the Mining Inspectorate, so that
any future award of the Exploitation Concession is consistent with
the SAC judgement in the case of the Norra K rr project.
We are firm in our belief that we have met all legal
requirements for being awarded the Concession.
-- The Company was awarded the Sala nr 10 exploration licence
which is located in V stmanland County, southern Sweden and covers
an area of 1,049 hectares ("ha"). The licence is prospective for
lead-zinc-silver mineralisation and is situated 200 metres ("m")
west of the former Sala silver mine.
Kurt Budge, CEO, commented:
"I am looking forward to the coming months as we increase our
efforts to get the Exploitation Concession for Kallak North
awarded, working with the Mining Inspectorate of Sweden and our
stakeholders.
"In the last month we have provided updates on our exploration
activities in Finland and Sweden as we have been busy carrying out
work at our graphite assets and at the Åtvidaberg licence. In
addition, we have been successful in the award of another
exploration licence, Sala nr 10 in Sweden.
"We have shareholders who remain focused on Kallak as the value
driver of Beowulf, but our moves into graphite, Åtvidaberg and Sala
will show their worth in time.
"It's nearly two years since my appointment as CEO, and while we
are still waiting for a decision on the Exploitation Concession for
Kallak North, Beowulf has diversified and made significant progress
towards building a solid platform for a modern and sustainable
mining business in the Nordic region.
"We have never believed in 'sitting on our hands', and we are
excited that we have momentum in the Kallak process, an opportunity
to re-engage with the community in Jokkmokk and our stakeholders in
Sweden, and we are actively working on our graphite portfolio and
Åtvidaberg licence.
"I look forward to updating shareholders on our progress in due
course."
Please use the following link to hear an interview made 4 August
2016 with Kurt Budge CEO, where he talks about the exploration
updates for graphite and Åtvidaberg, and the process for the Kallak
North Concession:
https://www.brrmedia.co.uk/broadcasts-embed/57a201033f268dbe45bea34b/event/?popup=true
Operational
Kallak North Exploitation Concession
We believe that the further review to be conducted by the Mining
Inspectorate is in the best interests of our stakeholders in
Sweden, and our Swedish and non-Swedish shareholders, so that any
future award of the Exploitation Concession is consistent with the
SAC judgement in the case of the Norra K rr project.
In 2015 we gained the support of the County Administrative Board
("CAB") for our application and the recommendation of the Mining
Inspectorate that the Concession be awarded. The Norra K rr
judgement meant that a further review of our application was
inevitable, but we maintain that, for this stage of permitting, our
EIA has provided the required level of technical detail, including
comprehensive studies covering all activities associated with a
future mining operation and their impact.
Swedish Exploration Portfolio
Kallak Area
In light of the continued review taking place on the Kallak
North Exploitation Concession application, the Company has delayed
its field programmes on and around Kallak, which were planned for
this year.
In anticipation of the Concession being awarded, we will be
submitting a work plan for drilling the exploration target on
Kallak South, as we seek to expand the defined iron ore resource.
We are also looking forward to further investigating the anomalies
identified in the desktop review of the Kallak area, the extension
of iron ore from Kallak to Parkijaur, and the prospect of copper
mineralisation at Nautijaur.
In April and May 2016, the Company received positive decisions
from the Mining Inspectorate for three year time extensions of its
Exploration Licences for Parkijaure nr 2 and nr 5.
Swedish Exploration Licences and Activities
After rationalising the exploration portfolio in 2015, Beowulf
made two applications for new ground in southern Sweden and was
awarded the Åtvidaberg nr 1, and Sala nr 10 exploration
licences.
Åtvidaberg - Overview
Beowulf's geologists have completed an initial assessment of the
Company's Åtvidaberg VMS lead-zinc-copper-silver exploration
licence, located in the Bergslagen area in southern Sweden.
Bergslagen is one of Europe's oldest mining areas and contains
one of the world's main VMS districts, with ore deposits
characterised by high contents of zinc, lead, copper and sometimes
silver and gold. It yielded a substantial portion of Sweden's
mineral wealth in the 1800-1900s, with a number of large mines and
hundreds of smaller mines producing copper, zinc, lead, gold,
silver and iron ore.
Several reconnaissance field excursions have been made to the
licence area, to establish 'first impressions' and assess the
geological environment, the structural setting, style and type of
mineralisation present.
Two main areas have been visited, Bersbo and Mormor, where old
mine workings, waste dumps and exploration pits were examined. Our
initial assessment of the Åtvidaberg licence is very positive, and
our main findings are summarised below.
Åtvidaberg - Bersbo Area
-- Bersbo contains 15 small historic mines that occur at the
contact of felsic and mafic volcanic rocks associated with a
geophysical airborne magnetic high anomaly.
-- The former Grönhög underground mine, situated in Bersbo,
extracted copper and zinc to a depth of 250m.
-- Mine waste dumps examined at Grönhög were found to be very
rich in sphalerite, the principal ore of zinc. This suggests that
past mining may have focused on copper, and that zinc ore may still
be present, with the potential of undiscovered ore zones below the
250m level where mining ceased.
-- Examination of the ore showed it to be highly magnetic,
confirming the association of the former copper-zinc mines in
Bersbo with the aero-magnetic high.
Åtvidaberg - Mormor Area
-- Mormor contains at least 14 historic mines over a mineralised
zone 5km in length and 1.5km in width. Two of the largest mines in
operation were Malmviksgruvan and Mormorsgruvan.
-- Examination of several large waste dumps at the
Malmviksgruvan mine confirmed the presence of chalcopyrite, the
principal ore of copper, in thin veins contained in a pink host
rock with high concentrations of potassium, possibly as a result of
hydrothermal alteration commonly associated with this type of
mineralisation.
-- Mining at Malmviksgruvan ceased at approximately 150m depth,
due to water ingress, and therefore it seems probable that ore will
continue below this depth.
-- Examination of mine waste dumps at the Mormorsgruvan mine
showed traces of chalcopyrite in thin veins in a
quartzo-feldspathic-granitoid rock. Historic sections for the mine
show the orebody to extend over 300m in length and to a depth of
407m.
Based on the preliminary findings of our fieldwork at
Åtvidaberg, Beowulf is planning and budgeting the next stages of
our exploration programme, which has already commenced and
includes:
-- Ground magnetic surveys to define areas of high magnetic
relief, which might potentially indicate mineralisation,
particularly in poorly exposed areas covered by glacial till,
concealing 'blind' deposits;
-- Rock chip sampling; and
-- Geological and structural mapping.
Sala nr 10 - Overview
The Sala nr 10 licence area covers 1,049ha and is located in V
stmanland County, southern Sweden.
The licence is prospective for lead-zinc-silver mineralisation
and is situated 200m west of the former Sala silver mine. Sulphide
mineralisation in the area is carbonate hosted, occurring
dominantly as silver-bearing lead sulphide (galena), and zinc
sulphide (sphalerite), and to a lesser extent as complex
antimonides, sulphosalts and native silver.
The Sala mine was once Europe's largest silver producer, in
continuous production between the late 15(th) century and 1908, and
known for having some of the richest silver ores in the world.
Mining records show that Sala was mined to a depth of approximately
300m, with mineralisation remaining open at depth.
Mining continued in 1950-51 and between 1945-62 at the adjacent
Bronas mine.
An exploration programme is being developed for the 2017
season.
Sala - Historic Exploration
Previous drilling in the licence area by Boliden, between 1984
and 1985, and Tumi Resources Ltd ("Tumi"), between 2008 and 2009,
discovered a new zinc-lead-silver mineralised zone, Sala West,
situated 200m directly west and parallel to the Sala silver
mine.
A total of 20 holes and 6785.9m of drilling have been completed
at Sala West.
Tumi, 2012 estimated an exploration target of 4 - 5 million
tonnes, 2.2 - 5 per cent zinc 35 - 95 ppm silver. The exploration
target lies within a 60m wide zone striking roughly north
north-west - south south-east. The mineralisation has been
intersected by drilling 640m along strike and to a depth of 400m.
The exploration target remains open along strike and at depth.
It should be noted that the exploration target has not been the
subject of technical evaluation at this stage, and insufficient
verification study has been undertaken to date by either Beowulf or
the Competent Person to assign confidence to this estimate and this
information is disclosed as reflecting project potential only.
Historic drill results include:
-- Drillhole SAA08-003; 37.2m estimated true width, at 6.1 per
cent zinc, 50 ppm silver, 0.3 per cent lead from 393.5m
-- SAA08-003; 15.9m estimated true width, at 4.2 per cent zinc,
157 ppm silver, 0.6 per cent lead from 439.7m
Finnish Graphite
Haapamäki
Beowulf has completed an initial geological appraisal of its
Haapamäki graphite project located in eastern Finland,
approximately 40km southwest of the well-established mining town of
Outokumpu.
The findings to date are very positive, and the project is
considered a priority target for continuing exploration
activities.
Highlights include:
-- A newly discovered prospective area at Haapamäki East
(Pitkäjärvi) in the eastern part of the project, where graphitic
schists on a fold limb are coincidental with an extensive
electromagnetic ("EM") anomaly defined by an earlier airborne
survey undertaken by Geological Survey of Finland ("GTK");
-- 5km in length and up to 0.4km in width, the EM conductive
zone is associated with outcrops of graphite schist, together with
numerous graphitic boulders in glacially transported till, with
potentially high grades of graphite, suggesting the strike
extensive zone of conductance is the result of graphite
mineralisation;
-- The presence of black schistose units, sometimes extending up
to 3km in length, corresponding to the EM conductors, but usually
poorly exposed and confined to topographic lows (valleys), with
variable graphite content at a few exposed locations;
-- Visual observation of coarse flake graphite mineralisation
(up to 1-2 millimetre ("mm") flakes) associated with pegmatitic
selvages at several locations, and shear zone hosted massive coarse
graphite situated near to EM conductors, observed from historic
quarries where graphite was previously extracted; and
-- Strongly foliated graphite bearing mica gneiss, with graphite
flake sizes up to 2mm (visual estimate), and variable graphite
content in mica layers.
The area has several historic graphite workings which correspond
to ground and airborne EM anomalies defined from previous
geophysical surveys. The Company completed additional geophysical
surveying in March 2016, utilising Slingram horizontal loop
electromagnetic ("HLEM") geophysical methods, in order to provide a
rapid and initial assessment of the project for potential
sub-surface graphite mineralisation. The results of the survey
(interpreted by GeoVista AB Consultants in Sweden "GeoVista") were
very encouraging, whereby 46 conductive bodies were defined on 28
profiles, the strongest occurring with widths of up to 68m.
Beowulf's geologists subsequently carried out reconnaissance
geological mapping and sampling at Haapamäki, to investigate the
conductive zones in the field. Although many of the EM anomalies
are obscured by glacial till, it was still possible to determine at
several locations (including road cuttings and old quarries) that
areas of graphite mineralisation occur at, or in close proximity
to, the EM conductive zones. This suggests that "blind" anomalies
buried underneath glacial till (which generally have a weaker
conductance) could also be related to graphite mineralisation.
Over the next few months, the Company plans a programme of
trenching, detailed geological mapping, rock-chip channel sampling
and metallurgical testwork to further investigate the prospect,
which will be followed by drilling to provide additional samples
for metallurgical testwork and preliminary grade assessment.
Piippumäki
Piippumäki is located in south-eastern Finland, approximately
45km south-west of the town of Mikkeli. Slingram EM surveys
conducted during 2013 and 2015 defined two conductive zones of
possible graphite schist along a strike extent of up to 2km in
length. Outcrop grab samples associated with the anomaly, indicated
grades of 5-10 per cent carbon graphite ("Cg"). Fieldwork also
visually identified occurrences of coarse flake graphite, hosted in
quartz, feldspar and mica schists.
Beowulf completed additional HLEM geophysical surveys in March
2016. Results of this work (interpreted by GeoVista) are also
encouraging and include:
-- 22 conductors defined on 13 profiles, including one EM
conductor defined over a strike length of up to 1.6km;
-- The anomalies show strong conductance indicating widths of up
to 60m in the western part of the survey area; and
-- The anomalies showing the strongest conductance and maximum
width in the western part of the survey area, are possibly
associated with a fold hinge.
Thirty samples collected from graphite bearing outcrops and
boulders at Piippumäki, Haapamäki and Haapamäki East, have been
despatched to Activation Laboratories Ltd ("Actlabs") in Ontario,
Canada for Cg, total carbon, total sulphur and multi-element
analyses.
Financials
-- Loss after taxation attributable to the owners of the parent
company is GBP333,052 and in line with the same period last year
(June 2015: loss of GBP330,276). The loss in Q2 2016 of
approximately GBP166,000 was also in line with the loss in Q1
2016.
-- Basic/diluted loss per share for the period of GBP0.07 showed
an improvement over the loss per share for the corresponding period
last year (June 2015: GBP0.09) and was significantly better than
the 2015 full year loss per share of GBP0.38.
-- Cash and cash equivalents at 30 June 2016 of GBP1,231,594,
are GBP1,058,639 above the corresponding period last year and
GBP878,680 above the level at 31 December 2015.
-- Intangible assets of GBP6,769,673 includes GBP277,982 for the
acquisition of Fennoscandian as detailed in note 5 to the financial
statements. In addition, there was favourable exchange rate
differences of GBP621,195 arising on the translation of opening
balances.
-- Share capital and share premium increased over the position
at 31 December 2015 mainly due to the fundraising in February and
March 2016 which raised net GBP1,432,500, and the initial shares
issued as part of the consideration for the Fennoscandian
acquisition (GBP25,500).
-- The merger reserve of GBP137,700 is in relation to the
Fennoscandian acquisition which was announced on 11 January
2016.
-- The translation reserve losses reduced from GBP1,090,348 at
31 December 2015 to GBP463,717 at 30 June 2016. This is mainly due
to the weakening of the pound which we saw in Q1 2016 and which
continued following the Brexit vote. The majority of the Company's
exploration costs are in Swedish Krona which has strengthened
against the pound by approximately 10 per cent since 31 December
2015.
Corporate
-- The total number of ordinary shares in circulation at the
date of this announcement is 479,296,998 ordinary shares of GBP0.01
each, with each share carrying the right to one vote. The Company
does not hold any ordinary shares in treasury.
Competent Person Review
The information in this announcement has been reviewed by Mr
Rasmus Blomqvist, a Competent Person who is a Member of the
Australasian Institute of Mining and Metallurgy. Mr Rasmus
Blomqvist has sufficient experience, that is relevant to the style
of mineralisation and type of deposit taken into consideration, and
to the activity being undertaken, to qualify as a Competent Person
as defined in the 2012 Edition of the "Australasian Code of
Reporting of Exploration Results, Mineral Resources and Ore
Reserves".
Mr Rasmus Blomqvist is a full-time employee of Oy Fennoscandian
Resources AB, a 100 per cent owned subsidiary of Beowulf.
Enquiries:
Beowulf Mining plc
Kurt Budge, Chief Executive Tel: +44 (0) 20 3771 6993
Officer
Cantor Fitzgerald Europe
(Nominated Advisor & Broker)
Stewart Dickson / Phil Davies Tel: +44 (0) 20 7894 7000
/ Carrie Drummond
Blytheweigh
Tim Blythe / Megan Ray Tel: +44 (0) 20 7138 3204
Cautionary Statement
Statements and assumptions made in this document with respect to
the Company's current plans, estimates, strategies and beliefs, and
other statements that are not historical facts, are forward-looking
statements about the future performance of Beowulf. Forward-looking
statements include, but are not limited to, those using words such
as "may", "might", "seeks", "expects", "anticipates", "estimates",
"believes", "projects", "plans", strategy", "forecast" and similar
expressions. These statements reflect management's expectations and
assumptions in light of currently available information. They are
subject to a number of risks and uncertainties, including, but not
limited to, (i) changes in the economic, regulatory and political
environments in the countries where Beowulf operates; (ii) changes
relating to the geological information available in respect of the
various projects undertaken; (iii) Beowulf's continued ability to
secure enough financing to carry on its operations as a going
concern; (iv) the success of its potential joint ventures and
alliances, if any; (v) metal prices, particularly as regards iron
ore. In the light of the many risks and uncertainties surrounding
any mineral project at an early stage of its development, the
actual results could differ materially from those presented and
forecast in this document. Beowulf assumes no unconditional
obligation to immediately update any such statements and/or
forecasts.
CONDENSED CONSOLIDATED INCOME STATEMENT
For the 6 months ended 30 June 2016
(Unaudited) (Unaudited) (Audited)
6 months 6 months Year ended
to to
Notes 30 June 30 June 31 Dec
2016 2015 2015
GBP GBP GBP
Continuing operations
Administrative expenses (336,325) (331,370) (647,268)
Impairment of exploration
costs - - (1,123,892)
------------ ------------ ------------
OPERATING LOSS (336,325) (331,370) (1,771,160)
Finance costs (180) - (139)
Finance income 3,238 638 1,982
------------ ------------ ------------
LOSS BEFORE TAX (333,267) (330,732) (1,769,317)
Tax - - -
------------ ------------ ------------
LOSS FOR THE PERIOD (333,267) (330,732) (1,769,317)
------------ ------------ ------------
Loss attributable to:
Owners of the parent (333,052) (330,276) (1,477,109)
Non-controlling interests (215) (456) (292,208)
------------ ------------ ------------
(333,267) (330,732) (1,769,317)
------------ ------------ ------------
Loss per share attributable
to the owners of the
parent:
Basic and diluted (pence)
3 (0.07) (0.09) (0.38)
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the 6 months ended 30 June 2016
(Unaudited) (Unaudited) (Audited)
6 months 6 months
to to Year ended
30 June 30 June 31 Dec
2016 2015 2015
GBP GBP GBP
LOSS FOR THE PERIOD (333,267) (330,732) (1,769,317)
OTHER COMPREHENSIVE INCOME
Items that may be reclassified
subsequently
to profit or loss:
Exchange gains/(losses) arising
on translation of ,
foreign operations 626,631 (410,918) (157,900) ,
Revaluation of investments - (20,550) (20,550)
----------- ----------- -----------
626,631 (431,468) (178,450)
TOTAL COMPREHENSIVE INCOME
FOR THE
PERIOD 293,364 (762,200) (1,947,767)
Total comprehensive income
attributable to:
Owners of the parent 292,942 (756,175) (1,660,172)
Non-controlling interests 422 (6,025) (287,595)
----------- ----------- -----------
293,364 (762,200) (1,947,767)
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 30 June 2016
(Unaudited) (Unaudited) (Audited)
As at As at As at
Notes 30 June 2016 30 June 2015 31 Dec 2015
GBP GBP GBP
ASSETS
Non-current assets
Intangible assets 6 6,769,673 6,253,448 5,588,270
Plant, property and equipment 29,463 34,913 31,551
Loans and other financial assets 5,241 49,822 51,938
-------------- -------------- -------------
6,804,377 6,338,183 5,671,759
Current assets
Trade and other receivables 55,305 50,603 82,330
Cash and cash equivalents 1,231,594 172,955 352,914
-------------- -------------- -------------
1,286,899 223,558 435,244
TOTAL ASSETS 8,091,276 6,561,741 6,107,003
-------------- -------------- -------------
EQUITY
Shareholder's equity
Share capital 4 4,792,969 3,764,619 4,303,138
Share premium 16,167,782 15,070,648 15,187,112
Revaluation reserve (30,000) (30,000) (30,000)
Capital contribution reserve 46,451 46,451 46,451
Share-based payment reserve 181,098 72,675 97,796
Translation reserve (463,717) (1,333,184) (1,090,348)
Merger reserve 137,700 - -
Accumulated losses (12,799,526) (11,356,110) (12,466,046)
-------------- -------------- -------------
8,032,757 6,235,099 6,048,103
Non-controlling interest (158,884) 123,109 (158,461)
-------------- -------------- -------------
TOTAL EQUITY 7,873,873 6,358,208 5,889,642
-------------- -------------- -------------
LIABILITIES
Current liabilities
Trade and other payables 217,403 203,533 217,361
-------------- -------------- -------------
TOTAL LIABILITIES 217,403 203,533 217,361
-------------- -------------- -------------
TOTAL EQUITY AND LIABILITIES 8,091,276 6,561,741 6,107,003
-------------- -------------- -------------
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the 6 months ended 30 June 2016
Share Share Revaluation Capital Share-based Translation Merger Accumulated Total Non Total
capital premium reserve contribution payment reserve reserve losses controlling equity
reserve reserve interest
GBP GBP GBP GBP GBP GBP GBP GBP GBP GBP GBP
Balance at
1 January
2015 3,452,598 15,009,812 (9,450) 46,451 69,318 (927,835) - (11,025,834) 6,615,060 129,134 6,744,194
Issue of share
capital 312,021 83,776 - - - - - - 395,797 - 395,797
Costs
associated
with the issue
of new shares - (22,940) - - - - - - (22,940) - (22,940)
Equity-settled
share-based
payment
transactions - - - - 3,357 - - - 3,357 - 3,357
Total
comprehensive
income - - (20,550) - - (405,349) - (330,276) (756,175) (6,025) (762,200)
---------- ----------- ------------ ------------- ------------ ------------ -------- ------------- ---------- ------------ ------------
Balance at
30 June 2015 3,764,619 15,070,648 (30,000) 46,451 72,675 (1,333,184) - (11,356,110) 6,235,099 123,109 6,358,208
---------- ----------- ------------ ------------- ------------ ------------ -------- ------------- ---------- ------------ ------------
Issue of share
capital 538,519 148,981 - - - - - - 687,500 - 687,500
Costs
associated
with the issue
of new shares - (32,517) - - - - - - (32,517) - (32,517)
Equity-settled
share-based
payment
transactions - - - - 62,018 - - - 62,018 - 62,018
Release of
charge for
Lapsed options - - - - (36,897) - - 36,897 - - -
Total
comprehensive
income - - - - - 242,836 - (1,146,833) (903,997) (281,570) (1,185,567)
---------- ----------- ------------ ------------- ------------ ------------ -------- ------------- ---------- ------------ ------------
Balance at
31 December
2015 4,303,138 15,187,112 (30,000) 46,451 97,796 (1,090,348) - (12,466,046) 6,048,103 (158,461) 5,889,642
---------- ----------- ------------ ------------- ------------ ------------ -------- ------------- ---------- ------------ ------------
Issue of share
capital 489,831 1,048,170 - - - - - - 1,538,001 - 1,538,001
Costs
associated
with the issue
of new shares - (67,500) - - - - - - (67,500) - (67,500)
Equity-settled
share-based
payment
transactions - - - - 83,302 - - - 83,302 - 83,302
Acquisition
of subsidiary - - - - - - 137,700 - 137,700 - 137,700
Total
comprehensive
income - - - - - 626,631 - (333,480) 293,151 (423) 292,728
---------- ----------- ------------ ------------- ------------ ------------ -------- ------------- ---------- ------------ ------------
Balance at
30 June 2016 4,792,969 16,167,782 (30,000) 46,451 181,098 (463,717) 137,700 (12,799,526) 8,032,757 (158,884) 7,873,873
---------- ----------- ------------ ------------- ------------ ------------ -------- ------------- ---------- ------------ ------------
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
For the 6 months ended 30 June 2016
(Unaudited) (Unaudited) (Audited)
6 months to 6 months to Year ended
30 June 2016 30 June 2015 31 Dec 2015
GBP GBP GBP
Cash flows from operating activities
Loss before income tax (333,267) (330,732) (1,769,317)
Depreciation charges 6,143 4,825 9,553
Equity-settled share-based transactions 20,055 3,357 65,375
Impairment of exploration costs - - 1,123,892
Expenses financed by issue of shares 12,500 - 58,298
Finance costs - - 139
Finance income (3,238) (638) (1,982)
(297,807) (323,188) (514,042)
Decrease/(Increase) in trade and
other receivables 27,079 (8,638) (39,803)
Decrease in trade and
other payables (346) (90,760) (77,040)
Net cash used in operating activities (271,074) (422,586)
(630,885)
Cash flows from investing activities
Purchase of intangible fixed assets (288,111) (113,366) (323,545)
Purchase of property, plant and equipment (862) - -
Disposal of fixed asset investments 49,216 37 119
Purchase of subsidiary undertaking (46,151) - -
Acquisition of subsidiary cash 1,055 - -
Interest received 3,238 638 1,838
Net cash used in investing activities (281,615) (112,691)
(321,588)
Cash flows from financing activities
Proceeds from issue of shares 1,500,000 395,797 1,024,999
Payment of share issue costs (67,500) (22,940) (55,457)
Settlement of derivative financial asset - 150,000 150,000
Net cash from financing activities 1,432,500 522,857
1,119,542
Increase/(decrease) in cash and cash
equivalents 879,811 (12,420) 167,069
Cash and cash equivalents at beginning of period 352,914 186,889
186,889
Effect of foreign exchange rate changes (1,131) (1,514) (1,044)
Cash and cash equivalents at end of period 1,231,594 172,955
352,914
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL
INFORMATION
For the 6 months ended 30 June 2016
1. Nature of Operations
Beowulf Mining plc (the "Company") is domiciled in England. The
Company's registered office is 201 Temple Chambers, 3-7 Temple
Avenue, London, EC4Y 0DT. This consolidated financial information
comprises the Company and its subsidiaries (collectively the
'Group' and individually 'Group companies'). The Group is engaged
in the acquisition, exploration and evaluation of natural resources
assets and has not yet generated revenues.
2. Basis of preparation
The condensed consolidated financial information has been
prepared on the basis of the recognition and measurement
requirements of International Financial Reporting Standards (IFRS)
as adopted by the European Union (EU) and implemented in the UK.
The accounting policies, methods of computation and presentation
used in the preparation of the interim financial information are
the same as those used in the Group's audited financial statements
for the year ended 31 December 2015.
The financial information in this statement does not constitute
full statutory accounts within the meaning of Section 434 of the UK
Companies Act 2006. The financial information for the six months
ended 30 June 2016 is unaudited, and has not been reviewed by the
auditors. The financial information for the year ended 31 December
2015 has been derived from the Group's audited financial statements
for the period. The auditor's report on the statutory financial
statements for the year ended 31 December 2015 was unqualified and
did not contain any statement under sections 498 (2) or (3) of the
Companies Act 2006.
The financial statements are presented in GB Pounds Sterling.
They are prepared on the historical cost basis or the fair value
basis where the fair valuing of relevant assets and liabilities has
been applied.
3. Loss per share
Basic loss per share is calculated by dividing the loss
attributable to ordinary owners of the parent by the weighted
average number of ordinary shares of 464,293,388 (30 June 2015:
362,187,280 and 31 December 2015: 392,759,894) outstanding during
the period. There is no difference between the basic and diluted
loss per share.
4. Called up share capital
(Unaudited) (Unaudited) (Audited)
30 June 30 June 31 Dec
2016 2015 2015
GBP GBP GBP
Allotted, issued and
fully paid
Ordinary shares of 1p
each 4,792,969 3,764,619 4,303,138
The number of shares in issue was as follows:
Number
of shares
Balance at 1 January 2015 345,259,849
Issued during the period 31,202,123
-----------
Balance at 30 June 2015 376,461,972
Issued during the period 53,851,852
-----------
Balance at 31 December 2015 430,313,824
Issued during the period 48,983,174
-----------
Balance at 30 June 2016 479,296,998
5. Acquisition of Oy Fennoscandian Resources AB
("Fennoscandian")
On 11 January 2016, the Company announced it had acquired 100%
of the share capital of Fennoscandian, a privately owned company
based in Finland with a portfolio of four early-stage graphite
exploration projects. The transaction consisted of an initial
payment of 2.1 million shares with a deferred payment of 450,000
shares. Beowulf has paid for the 100% of the share capital of
Fennoscandian by issuing 2.55 million ordinary shares in the
Company. On 11 January 2016, one Beowulf share was worth 6.4p,
valuing the initial part of the transaction at GBP163,200.
In addition, two further tranches of ordinary shares will be
issued on achievement of certain performance milestones. The first
tranche of ordinary shares will be issued on the production of a
maiden resource statement on one of the graphite projects in the
portfolio, or on the anniversary 24 months following completion of
the acquisition, subject to Mr. Blomqvist having worked for the
Company as a full-time employee during that period. The second
tranche of shares will be issued on completion of a bankable
feasibility study on one of the graphite projects in the portfolio.
The total number of ordinary shares that may be issued, if all
performance milestones are achieved, is 6.75 million ordinary
shares. Beowulf will issue up to a further 4.2 million additional
consideration shares in the form of a share-based payment
transaction to the former owner, Rasmus Blomqvist. The share-based
payments fall within the scope of IFRS 2 and are fair valued at the
grant date based on the estimated number of shares that will vest.
The fair value has been prepared using a Black-Scholes pricing
model including a share price of 6.4p, option life of two years,
volatility of 49.79% and a risk free rate of 0.698%. The
share-based charge is GBP268,800 bringing the total consideration
including transaction costs of GBP45,094 to GBP477,094, if all
additional shares are issued.
The consideration recognised in the financial statements as at
30 June 2016 is GBP277,982 and has been recorded in intangible
assets evenly across the four acquired graphite projects. The share
based payment charge is spread over the two-year option life,
therefore, in the six months ended 30 June 2016 only GBP63,247 (of
the GBP268,800) has been recognised under intangibles.
At a group level, the Company have given consideration to
whether or not the acquisition meets the definition of a business
combination and therefore falls within the scope of IFRS 3. The
conclusion is that due to the early stage of the projects acquired
and because Fennoscandian does not have the inputs, processes and
outputs required to meet the conditions of a business combination
the acquisition shall be treated as an acquisition of assets at a
group level and is therefore outside the scope of IFRS 3.
6. Closing value of intangible assets
As at As at
30 31 December
June 2015
2016
Project GBP GBP
names Country Minerals
Ågåsjiegge Sweden Iron ore 7,633 -
Åtvidaberg Sweden Lead-zinc-copper-silver 78,529 -
Kallak Sweden Iron ore 6,294,271 5,565,328
Nautijaure Sweden Copper 24,859 22,942
Sala Sweden Lead-zinc-silver 1,913 -
Haapamäki Finland Graphite 112,939 -
Kolari Finland Graphite 75,377 -
Piippumäki Finland Graphite 87,625 -
Viistola Finland Graphite 86,527 -
Total 6,769,673 5,588,270
============ =============
7. Availability of interim report
A copy of these results will be made available for inspection at
the Company's registered office during normal business hours on any
weekday. The Company's registered office is at 207 Temple Chambers,
3-7 Temple Avenue, London, EC4Y 0DT. A copy can also be downloaded
from the Company's website at www.beowulfmining.com. Beowulf Mining
plc is registered in England and Wales with registered number
02330496.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR LLFIITLIDFIR
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